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, 2021
(Based on Japanese GAAP)
October 25, 2021
Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
President

URL

https://www.trancom.co.jp/ir/
Yutaka Tsunekawa

Inquiries:

Director, Senior Executive Officer /Corporate Planning Group

Atsunori Takabe

TEL

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

November 5, 2021
December 7, 2021

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

Yes
Yes

(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, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2021
79,716
9.7
3,959
10.2
4,010
9.4
2,600
1.5
Six months ended September 30, 2020
72,645(9.4)
3,592(2.2)
3,666
1.0
2,562
8.5
Earnings per share

Diluted earnings per share

Yen
265.54261.89Six months ended September 30, 2021
Six months ended September 30, 2020

Yen
264.88261.22(2) Consolidated financial position
Total assets

Net assets

Millions of yen
65,541
65,613As of September 30, 2021
As of March 31, 2021

Equity ratio

Millions of yen
45,611
43,276

Net assets per share%
69.0
65.4

Yen
4,615.30
4,383.19

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
55.00
62.00

Yen–

Yen
60.00

Yen
115.00–62.00124.00Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
163,470

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
7.3
8,250
0.1
8,280(1.4)
5,470(4.5)
558.751

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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, 2021

10,324,150 shares As of March 31, 2021

10,324,150 shares

Number of treasury shares at the end of the period
As of September 30, 2021

528,755 shares As of March 31, 2021

534,530 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

9,792,434 shares Six months ended September 30, 2020

29,784,999 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

19,97324,89520,509–Notes and accounts receivable - trade, and contract assets
Merchandise–
14

23,9208Work in process
Supplies

214214

Prepaid expenses
Other655
307

760
150

Allowance for doubtful accounts

(0)

(1)

45,86445,364

9,443

9,489

Accumulated depreciation(4,917)(5,027)

Buildings and structures, net

4,526

4,461

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

Machinery, equipment and vehicles

6,617

7,264

Accumulated depreciation(5,195)(5,368)

Machinery, equipment and vehicles, net

1,422

1,895

Land

2,871

3,005

Leased assets
Accumulated depreciation

2,439(1,688)2,408(1,767)751

640

RightOfUseAssets
Accumulated depreciation

1,496(314)

1,496(431)

RightOfUseAssets, net

1,182

1,065

489
1,565

305
1,495

(1,061)(1,025)

Leased assets, net

Construction in progress
Other
Accumulated depreciation
Other, net

504

470

11,747

11,844756

733

SoftwareSoftware in progress

1,339
297

1,061
467

Customer Relationship
Other373
158

355
157

Total intangible assets

2,926

2,774

Total property, plant and equipment
Intangible assets
Goodwill3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Investments and other assets
Investment securities
Deferred tax assets

2,598
586

2,755
614

Deferred tax assets for land revaluation
Guarantee deposits

19
1,685

19
2,020

Other
Allowance for doubtful accounts

198
(13)

160
(13)

Total investments and other assets

5,075

5,556

19,74920,17665,613

65,541

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Accounts payable - trade

12,135

11,059Lease obligations
Accounts payable - other

629
736

545
1,050

Accrued expenses
Income taxes payable

1,365
1,545

1,427
874

Accrued consumption taxes
Provision for bonuses

1,624
635

655
700

–322

18
365

18,995

16,697

1,589

1,448

Deferred tax liabilities
Provision for share awards

96284

90
302

Provision for share awards for directors (and otherofficers)

301

316

Retirement benefit liability
Asset retirement obligations

104
593

99629

Other372

346

Provision for bonuses for directors (and other officers)
Other
Total current liabilities
Non-current liabilities
Lease obligations

Total non-current liabilities

3,342

3,232

22,337

19,930Share capital
Capital surplus

1,080
1,796

1,080
1,809

Retained earnings
Treasury shares

40,921(1,072)

42,928(1,051)

Total shareholders' equity

42,72544,766

Total liabilities
Net assets
Shareholders' equityAccumulated other comprehensive income
Valuation difference on available-for-sale securities

485

513

Revaluation reserve for land
Foreign currency translation adjustment

(44)
(248)

(44)
(20)

Remeasurements of defined benefit plans

(8)

(6)

Total accumulated other comprehensive income

184

442

104

100

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

5261

301

43,27645,611

65,61365,541

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2020

Six months ended
September 30, 2021

Net sales

72,64579,716

Cost of sales

67,69674,357Gross profit

4,948

5,358

Selling, general and administrative expenses

1,356

1,398

Operating profit

3,592

3,959

Non-operating income
Interest and dividend income

1419

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

29183

3686

Other

3750

Total non-operating income

265

192

Interest expenses
Loss on retirement of non-current assets

54866
31

Compensation expenses
Other–12725
19

Total non-operating expenses

191

142

3,666

4,010

Impairment losses–

46

Total extraordinary losses–

46

Profit before income taxes

3,666

3,964

Income taxes - current

1,112

1,381

Non-operating expenses

Ordinary profit
Extraordinary losses

Income taxes - deferred

(48)

(53)

Total income taxes

1,063

1,327

Profit

2,603

2,636

Profit attributable toProfit attributable to owners of parent

2,562

2,600

40

35

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

350
(70)

27–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(158)1233
2Profit attributable to non-controlling interests
Other comprehensive income

122264Comprehensive income

Total other comprehensive income

2,725

2,900

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,696

2,858

28

42

Comprehensive income attributable to non-controlling interests

6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, 2020

September 30, 2021

3,666

3,964

–1,16046
1,285

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

64(0)

70
1

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

40

64

1618

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

23

18

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

29

14

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

(0)
(14)

(1)
(19)

Share of loss (profit) of entities accounted for using equity
method(29)(36)

Subsidy income
Interest expenses(183)
54(86)
66

8–

3125

Decrease (increase) in trade receivables
Decrease (increase) in receivables and contract assets

2,818––
1,060

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes(2,152)426(1,123)(969)

Loss on retirement of non-current assets
Compensation expenses

Other, net

(249)

429

Subtotal

5,679

4,858

Interest and dividends received

1419

Dividends received from entities accounted for using
equity method–31183(54)

86
(66)

Compensation expenses paid
Income taxes paid–
(1,206)(25)(1,990)Net cash provided by (used in) operating activities

4,615

2,914–(72)

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

(429)
124

(911)
28

Purchase of intangible assets
Purchase of investment securities

(308)
(121)

(238)
(111)

21(295)(714)(1,602)

Subsidies received
Interest paid

Cash flows from investing activities
Payments into time deposits

Other, net
Net cash provided by (used in) investing activities

7(Millions of yen)

Cash flows from financing activities
Purchase of treasury shares

Six months ended

Six months ended

September 30, 2020

September 30, 2021
(0)

(0)

Proceeds from disposal of treasury shares
Dividends paid

7(513)–(592)

Repayments of lease obligations

(222)

(339)

Net cash provided by (used in) financing activities

(728)

(933)

Effect of exchange rate change on cash and cash equivalents

(84)

84

Net increase (decrease) in cash and cash equivalents

3,088

463

Cash and cash equivalents at beginning of period

14,575

19,973

Cash and cash equivalents at end of period

17,663

20,4368