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 Six Months Ended September 30, 2022
(Based on Japanese GAAP)
October 24, 2022
Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
URL https://www.trancom.co.jp/ir/
Representative Director ,President
Atsunori Takabe

Inquiries:
Executive Officer / Finance and Accounting
Scheduled date to file Quarterly Securities Report:

Naoki Mitamura
November 4, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 6, 2022
Yes

Holding of quarterly financial results meeting:

Yes

TEL

(052)939-2011(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)Net sales
Six months ended September 30, 2022
Six months ended September 30, 2021

Millions of yen
83,88979,716Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
5.2
3,660
(7.5)
3,805
(5.1)
3,320
27.7
9.7
3,959
10.2
4,010
9.4
2,600
1.5

Earnings per share

Diluted earnings per shareYen
341.91265.54Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
341.06264.88(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
71,963
69,636Equity ratio

Millions of yen
50,07647,636

Net assets per share%
68.8
67.8

Yen
5,145.78
4,816.37

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
62.00
68.00

Yen–

Yen
64.00

Yen
126.00–68.00136.00Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
171,500
5.2
7,800(2.4)
8,000(2.3)
6,000
13.4
617.901

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:

Yes
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

10,324,150 shares As of March 31, 2022

10,324,150 shares

Number of treasury shares at the end of the period
As of September 30, 2022

697,529 shares As of March 31, 2022

527,285 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

9,710,302 shares Six months ended September 30, 2021

29,792,434 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
MerchandiseWork in process
Supplies
Prepaid expenses
Deposits paid
Other
Allowance for doubtful accounts

As of September 30, 2022

20,02425,728
8
518
794–
222
(1)

20,43925,395
14
3
23
910
798
403
(1)

46,80047,987

9,874(5,197)

10,209(5,371)

Buildings and structures, net

4,676

4,838

Machinery, equipment and vehicles
Accumulated depreciation

7,960(5,764)

8,346(6,210)

2,195

2,136

3,005
2,376(1,830)

3,005
2,336
(1,858)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

545

478

RightOfUseAssets
Accumulated depreciation

Leased assets, net

1,797(605)

2,072(953)

RightOfUseAssets, net

1,192

1,119

Construction in progress
Other
Accumulated depreciation

251
1,596(1,107)

293
1,794(1,178)

Other, net

489

616

12,356

12,488Intangible assets
Goodwill
Software
Software in progress
Customer Relationship
Other

1,761
1,432
36
325
154

1,849
1,322
96313
152

Total intangible assets

3,711

3,735

3,622
755
19
2,240
142(13)

3,988
730
19
2,559
473
(18)

Total property, plant and equipment

Investments and other assets
Investment securities
Deferred tax assets
Deferred tax assets for land revaluation
Guarantee deposits
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

6,768

7,752

22,83623,976

69,636

71,963

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Lease liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

As of September 30, 2022

12,402
–
708
1,727
1,355
1,024
673
635
–
357

12,188
156
786
1,731
1,301
1,237
579
677
15
311

18,88518,986

1,295
82
306

1,054
79
333

343

369

94
636
356

93
611
359

3,115

2,901

Total liabilities

22,00021,887

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

1,080
1,815
45,007(1,049)

1,080
1,871
47,620(2,287)

Total current liabilities
Non-current liabilities
Lease liabilities
Deferred tax liabilities
Provision for share awards
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities

46,85348,284

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders' equity

241(44)141(5)

440
(44)
860
(4)

Total accumulated other comprehensive income

332

1,251

100
350

100
439

47,63650,076

69,636

71,963

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

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Net sales

79,716

83,889

Cost of sales

74,35778,398Gross profit

5,358

5,490

Selling, general and administrative expenses

1,398

1,830

Operating profit

3,959

3,660

Non-operating income
Interest and dividend income

1926

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

368657
80

Other

50

63

Total non-operating income

192

228

Interest expenses
Loss on retirement of non-current assets

6631530Compensation expenses
Other2519–29

Total non-operating expenses

14283

4,010

3,805

Gain on sale of shares of subsidiaries and associates

–

1,343

Total extraordinary income–

1,343

46

19

Loss on valuation of investment securities–

75

Total extraordinary losses

4695

Profit before income taxes

3,964

5,053

Income taxes - current
Income taxes - deferred

1,381
(53)

1,773
(82)

Total income taxes

1,327

1,690

Profit

2,636

3,363

Profit attributable toProfit attributable to owners of parent

2,600

3,320

35

43

Valuation difference on available-for-sale securities
Revaluation reserve for land

27–

199
–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

233
2760
1

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses

Profit attributable to non-controlling interests
Other comprehensive income

Total other comprehensive income
Comprehensive income

264

961

2,900

4,324

2,858
42

4,239
85

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2021

September 30, 2022

3,964

5,053

46
1,285

19
1,387

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

70
1171
4

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors

6452

18

15

Impairment losses
Depreciation(and other officers)
Increase (decrease) in provision for share awards

1827

Increase (decrease) in provision for share awards for
directors (and other officers)

1426

Increase (decrease) in retirement benefit liability
Interest and dividend income

(1)
(19)

(1)
(26)

Share of loss (profit) of entities accounted for using equity
method(36)(57)

Subsidy income
Interest expenses

(86)
66

(80)
53

Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets

31(4)

0(7)

Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities––(1,343)
75

Compensation expenses
Decrease (increase) in receivables and contract assets

25
1,060–
268

Decrease (increase) in deposits paid
Increase (decrease) in trade payables–(1,123)

(798)
(333)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

(311)
(969)

(56)
(98)

Other, net

745

(271)

Subtotal

4,858

4,081

Interest and dividends received

1926

Dividends received from entities accounted for using
equity method

3138

Subsidies received
Interest paid

86
(66)

80
(53)

Compensation expenses paid
Income taxes paid

(25)
(1,990)–(1,652)

Net cash provided by (used in) operating activities

2,914

2,519

Cash flows from investing activities
Payments into time deposits

(72)

–

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(911)
28(910)14

Purchase of intangible assets
Purchase of investment securities

(238)
(111)

(204)
(134)

–

1,201

(295)

(231)

(1,602)(264)

Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

6

(Millions of yen)

Cash flows from financing activities
Purchase of treasury sharesSix months ended

Six months ended

September 30, 2021

September 30, 2022
(0)(1,256)

Proceeds from disposal of treasury shares
Dividends paid–(592)

74(707)

Repayments of lease liabilities
Other, net(339)–(416)
156

Net cash provided by (used in) financing activities(933)(2,149)Effect of exchange rate change on cash and cash equivalents

84297

Net increase (decrease) in cash and cash equivalents

463

404

Cash and cash equivalents at beginning of period

19,973

19,949Cash and cash equivalents at end of period

20,436

20,3537