Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended June 30, 2019
(Based on Japanese GAAP)
August 9, 2019
Company name:

Trust Tech Inc.

Stock exchange listing: Tokyo
Stock code:
2154
Representative:
Inquiries:

URL

http://www.trust-tech.jp/

President and Representative Director
Director, Senior Managing Corporate

Executive Officer
Scheduled date of ordinary general meeting of shareholders:

Yutaka Nishida
Noriyuki Murai

TEL03-5777-7727

September 27, 2019

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

September 30, 2019
September 10, 2019

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2019 (from July 1, 2018 to June 30, 2019)(1) Consolidated operating resultsNet sales
Millions of yen
81,59665,363

Year ended June 30, 2019Year ended June 30, 2018
Note: Comprehensive income

Operating profit
%
24.8
51.9

Millions of yen
5,719
4,297

%
33.1
33.4

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
5,606
32.6
3,706
44.3
4,228
32.7
2,569
33.5

Year ended June 30, 2019

¥3,672 million [35.5%]

Year ended June 30, 2018

¥2,711 million [33.7%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
87.20
25.5
18.9
7.0
63.98
25.5
18.8
6.6

Diluted earnings pershareYen
87.47
64.31

Year ended June 30, 2019Year ended June 30, 2018

Reference: Share of profit (loss) of investments accounted for using the equity method
Year ended June 30, 2019Year ended June 30, 2018

¥17 million¥2 million

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. Earnings per share and diluted earnings per share have been
calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets
As of June 30, 2019
As of June 30, 2018
Reference: EquityNet assets

Millions of yen
31,20728,127
As of June 30, 2019:
As of June 30, 2018:

Millions of yen
15,802
13,715Equity ratio

Net assets per share
%
49.5
48.3

Yen
364.26
320.65¥15,439 million¥13,581 million

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. Net assets per share have been calculated based on theassumption that the stock split was implemented at the beginning of the previous fiscal year.
Note: The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28,February 16, 2018) and relevant Guidances effective from the beginning of the first quarter of the fiscal year ended June 30, 2019. Accordingly,
figures in the consolidated financial position as of June 30, 2018 are those after retrospective application of the standard and guidances.

1(3) Consolidated cash flows
Cash flows fromoperating activities
Millions of yen
5,028
5,144

Year ended June 30, 2019Year ended June 30, 2018

Cash flows frominvesting activities
Millions of yen(1,430)(2,720)Cash and cash equivalents
Cash flows fromat end of period
financing activities
Millions of yen
Millions of yen(2,748)
10,2572,415
9,410

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

YenYenYen

YenMillions of yen%%––20.00
30.00

––

35.00
40.00

55.00
70.00

1,135
1,376

42.8
40.0

11.2
10.2

–15.00–25.0040.00

Year ended June 30, 2018Year ended June 30, 2019Year ending June 30, 2020(Forecast)44.2

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. The dividend for the year ended June 30, 2018 and the dividend
for the year ended June 30, 2019 indicate the actual amount paid prior to the stock split.
3. Forecast of consolidated financial results for the year ending June 30, 2020 (from July 1, 2019 to June 30, 2020)
Net sales
Millions of yen
Six months ending
December 31, 2019
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

41,8103.9

2,731(12.2)

2,636(14.4)

1,560(22.0)

36.81

87,000

6.6

6,500

13.6

6,350

13.3

3,840

3.6

90.60

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. The forecasted earnings per share for the year ending June 30,
2020 have been prepared taking its effect into account.
4. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2019

42,386,200 shares As of June 30, 2018

42,358,800 shares

Number of treasury shares at the end of the period
As of June 30, 2019

1,532 shares As of June 30, 2018

1,064 shares

Average number of shares during the period
Year ended June 30, 2019

42,371,449 shares Year ended June 30, 2018

39,948,912 shares

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. Total number of issued shares at the end of the period, numberof treasury shares at the end of the period, and average number of shares during the period have been calculated based on the assumption that thestock split was implemented at the beginning of the previous fiscal year.

2Reference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended June 30, 2019 (from July 1, 2018 to June 30, 2019)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended June 30, 2019Year ended June 30, 2018

Millions of yen30,005
25,315

Operating profit%18.5
19.6

Earnings per share

Millions of yen
4,016
3,268%
22.9
30.9

Millions of yen
3,930
3,457

Profit%13.7
29.1

Millions of yen
2,838
2,176%
30.4
14.8

Diluted earnings per share

Yen
66.99
54.48

Year ended June 30, 2019Year ended June 30, 2018

Ordinary profit

Yen
66.78
54.19

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. Earnings per share and diluted earnings per share have been
calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
(2) Non-consolidated financial position
Total assets
As of June 30, 2019
As of June 30, 2018
Reference: Equity

Net assets

Millions of yen
23,062
20,556
As of June 30, 2019
As of June 30, 2018

Millions of yen
13,944
12,450Equity ratio

Net assets per share%
60.4
60.5

Yen
328.92293.84¥13,941 million¥12,446 million

Note: The Company implemented a 2-for-1 common stock split on July 1, 2019. Net assets per share have been calculated based on theassumption that the stock split was implemented at the beginning of the previous fiscal year.
* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Explanation of the appropriate use of earnings forecasts and other special notes
Earnings forecasts and other forward-looking statements stated in this document are based on information available to the Company and certain
assumptions that the Company considers to be reasonable. The actual results may differ materially from the forecasts due to various factors.
(Method for obtaining materials for financial results meeting)
Financial results meeting for institutional investors and analysts will be held on Tuesday, August 20, 2019. Materials for the meeting will be
provided on the Company’s website as soon as possible after the meeting.
In addition to the above meeting, the Company holds meetings for individual investors regarding our business and performance on a timely
basis. For the schedule of these meetings, please refer to the Company’s website.

3Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of June 30, 2018

As of June 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,410
10,045

10,257
10,905

763
(28)

1,064
(28)

20,19022,199

439
(101)

518
(132)

337

386

108
384

107
455

Accumulated depreciation

(234)

(301)

Other, net

150

153

595

647

Intangible assets
Goodwill

5,658

5,385

Software
Other

290
10345
468

Total intangible assets

5,960

6,199

Investments and other assets
Deferred tax assets

810

990

570

1,170

1,380

2,161

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other

Total property, plant and equipment

OtherTotal investments and other assets
Total non-current assets
Total assets

47,936

9,008

28,127

31,207

(Millions of yen)
As of June 30, 2018

As of June 30, 2019

Liabilities
Current liabilities
Short-term loans payable

2,145

2,199

196
300

196
–

Accrued expenses
Income taxes payable

4,208
1,017

5,044
1,445

Accrued consumption taxes
Provision for bonuses

1,817
966

1,831
1,168

Current portion of bonds
Current portion of long-term loans payable

Other

1,754

2,000

Total current liabilities

12,405

13,886

Bonds payable
Long-term loans payable

910
900

714–

Deferred tax liabilities
Retirement benefit liability–
4788
53

Non-current liabilities

Other147

662

2,005

1,518

14,411

15,404

Capital stock
Capital surplus

4,199
3,356

4,216
3,321

Retained earnings
Treasury shares

5,830
(0)

7,833
(1)

Total shareholders' equity

13,385

15,369Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

0(0)Foreign currency translation adjustment19570

Total accumulated other comprehensive income

19670

33

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5130

360

13,71515,802

28,127

31,207

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
June 30, 2018

Fiscal year ended
June 30, 2019

Net sales

65,36381,596

Cost of sales

52,06064,705Gross profit

13,302

16,891

279
3,373

285
4,463

Retirement benefit expenses
Offering cost

20560

29577Commission expenses
Taxes and dues

771
174

1,195
224

Other

3,825

4,396

Total selling, general and administrative expenses

9,005

11,171

4,297

5,719

08

Subsidy income
Share of profit of entities accounted for using equity method

46
2

47
17

Other

16

1164

85

Interest expenses
Share issuance cost

82
2996
–

Valuation loss on sold put options debt pertain to noncontrolling interests–

25

Foreign exchange losses
Other

91154
21

Total non-operating expenses

133

198

4,228

5,606

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances

Operating profit
Non-operating income
Interest income

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

00

Gain on reversal of share acquisition rights
Gain on sales of investment securities

010–

Total extraordinary income

21Extraordinary losses
Loss on retirement of non-current assets

104

Settlement of contract amendment

170–

Total extraordinary losses

1804Profit before income taxes

4,050

5,602

Income taxes - current
Income taxes - deferred1,687(227)

1,999(197)

Total income taxes

1,460

1,802

Profit

2,590

3,800

2194

2,569

3,706

Profit attributable to non-controlling interests
Profit attributable to owners of parent6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income

Fiscal year ended

Fiscal year ended

June 30, 2018

June 30, 2019
2,5903,8000119(0)
(88)

0(39)

120(128)

2,711

3,672

2,691

3,580

1991

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended June 30, 2018
(Millions of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,562

720

2,636

2,636

Retainedearnings
4,238

Treasury shares

Total
shareholders'equity

(0)

6,520

Changes of items during period
Issuance of new shares5,273

Dividends of surplus

(977)

(977)

Profit attributable to owners ofparent

2,569

2,569

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during
period

2,636

2,636

1,591

(0)

6,865

Balance at end of current period

4,199

3,356

5,830

(0)

13,385

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Totalaccumulated
othercomprehensive
income07374

ShareacquisitionrightsNon-controlling
Total net assetsinterests

498

6,697

Changes of items during period
Issuance of new shares

5,273

Dividends of surplus(977)

Profit attributable to owners ofparent

2,569

Purchase of treasury shares
Net changes of items other thanshareholders' equity

(0)
0121

122(0)

32

153

Total changes of items during
period0121122(0)

32

7,018

Balance at end of current period

0195

196

3130

13,715

8Fiscal year ended June 30, 2019
(Millions of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

4,199

3,356

1717

Retainedearnings
5,830

Treasury shares

Total
shareholders'equity(0)

13,385

Changes of items during period
Issuance of new shares

34

Dividends of surplus(1,376)(1,376)

Profit attributable to owners ofparent

3,706

3,706

Purchase of treasury shares(0)

Purchase of shares of
consolidated subsidiaries

(52)

(0)
(52)

Change in put option's liabilities
pertain to non-controllinginterests, etc

(326)

(326)

Net changes of items other thanshareholders' equity
Total changes of items duringperiod

17(35)

2,002

(0)

1,983

Balance at end of current period

4,216

3,321

7,833

(1)

15,369

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income

0195

196

Share
acquisitionrightsNon-controlling
Total net assetsinterests

3130

13,715

Changes of items during period
Issuance of new shares

34

Dividends of surplus(1,376)

Profit attributable to owners ofparent

3,706

Purchase of treasury shares(0)Purchase of shares of
consolidated subsidiaries(52)

Change in put option's liabilities
pertain to non-controllinginterests, etc(326)

Net changes of items other thanshareholders' equity

(0)

(125)

(125)

(0)

229

103

Total changes of items duringperiod

(0)

(125)

(125)

(0)

229

2,086

Balance at end of current period

(0)

7070

3360

15,8029Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2018

June 30, 2019
4,0505,602

Depreciation
Amortization of goodwill

152
642

281
756

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

365
3202
5

Interest and dividend income
Interest expenses

(0)
82

(8)
96

Share of loss (profit) of entities accounted for using equity
method(2)(17)

Loss on retirement of non-current assets
SettlementOfContractAmendment

10170

4–

(244)
1,031

(573)
731

Other, net

662

(386)

Subtotal

6,924

6,694

042(81)
(170)

(94)
–

Income taxes paid

(1,528)(1,615)

Net cash provided by (used in) operating activities

5,144

5,028(220)
(136)

(155)
(198)

(2,313)(415)

Purchase of shares of subsidiaries and associates
Net decrease (increase) in lease and gurantee deposits

(30)
(95)

(648)
(0)

Other, net

74

(11)

(2,720)(1,430)

Increase in short-term loans payable
Decrease in short-term loans payable

2,000(3,350)292(179)

Repayments of long-term loans payable
Redemption of bonds

(300)
(196)

(1,206)
(196)

(1)

–

5,192

8(971)(1,380)

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation–(85)

Other, net

43(0)Net cash provided by (used in) financing activities

2,415(2,748)

Effect of exchange rate change on cash and cash equivalents

(12)

(2)

Net increase (decrease) in cash and cash equivalents

4,828

847

Cash and cash equivalents at beginning of period

4,581

9,410

Cash and cash equivalents at end of period

9,410

10,257

Decrease (increase) in notes and accounts receivable - trade
Increase (decrease) in accrued expenses

Interest and dividend income received
Interest expenses paid
PaymentsForSettlementOfContractAmendment

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scopeof consolidation

Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of lease obligations
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Cash dividends paid

10