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, 2017
(Based on Japanese GAAP)
August 10, 2017
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

Yutaka Nishida
Noriyuki Murai

Executive Officer
Scheduled date of ordinary general meeting of shareholders:

September 22, 2017

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

September 25, 2017
September 5, 2017

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

Yes
Yes

TEL

03-5777-7727(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2017 (from July 1, 2016 to June 30, 2017)(1) Consolidated operating results
Net sales
Millions of yen
43,03530,143

Year ended June 30, 2017
Year ended June 30, 2016
Note: Comprehensive income

Operating profit
%
42.8
44.8

Millions of yen
3,220
2,549%
26.3
59.6

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
3,185
26.0
1,923
26.3
2,528
55.8
1,523
48.7

Year ended June 30, 2017

¥2,027 million [33.3%]

Year ended June 30, 2016

¥1,521 million [48.2%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%98.92
32.3
22.2
7.5
78.34
31.3
25.7
8.5

Diluted earnings pershareYen
99.17
78.91

Year ended June 30, 2017
Year ended June 30, 2016

Reference: Share of profit (loss) of investments accounted for using the equity method
Year ended June 30, 2017
Year ended June 30, 2016¥(3) million¥ – million* The Company implemented a 2-for-1 common stock split on April 1, 2016. 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, 2017
As of June 30, 2016
Reference: EquityNet assets

Millions of yen
16,805
11,914As of June 30, 2017:
As of June 30, 2016:

Millions of yen
6,697
5,322

Equity ratio

Net assets per share%
39.2
44.6

Yen
339.37274.80¥6,594 million¥5,318 million* The Company implemented a 2-for-1 common stock split on April 1, 2016. Net assets per share have been calculated based on the assumptionthat the stock split was implemented at the beginning of the previous fiscal year.

1(3) Consolidated cash flows
Cash flows fromoperating activities
Millions of yen
2,274
1,418

Year ended June 30, 2017
Year ended June 30, 2016

Cash flows frominvesting activities
Millions of yen(2,395)(1,807)

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
764
4,581
1,287
3,930

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end
YenYenYenof dividends
Total cashDividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Millions of yen%%

Year ended June 30, 2016
–
30.00
–
25.00
–
773
50.7
15.9
Year ended June 30, 2017
–
15.00
–
30.00
45.00
874
45.4
14.7
Year ending June 30, 2018
–
20.00
–
35.00
55.00
40.8(Forecast)* The Company implemented a 2-for-1 common stock split on April 1, 2016. The dividend for the second quarter of the fiscal year ended June30, 2016 indicates the actual amount paid prior to the stock split. On the assumption that the stock split was implemented at the beginning of
the previous fiscal year, annual dividend for the fiscal year ended June 30, 2016 would be 40.00 yen per share.
3. Forecast of consolidated financial results for the year ending June 30, 2018 (from July 1, 2017 to June 30, 2018)
Net sales
Millions of yen
Six months ending
December 31, 2017
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

24,62020.3

2,065

58.0

2,062

60.6

1,273

75.3

65.52

51,500

19.7

4,250

32.0

4,250

33.4

2,620

36.2

134.83

4. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2017(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
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 201719,433,000 shares As of June 30, 2016

19,353,000 shares

Number of treasury shares at the end of the period
As of June 30, 2017493 shares As of June 30, 2016

390 shares

Average number of shares during the period
Year ended June 30, 2017

19,401,559 shares Year ended June 30, 2016

19,312,066 shares* The Company implemented a 2-for-1 common stock split on April 1, 2016. Number of issued shares (common shares) have been calculated
based on the assumption that the stock 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, 2017 (from July 1, 2016 to June 30, 2017)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended June 30, 2017
Year ended June 30, 2016

Millions of yen
21,16017,002

Operating profit%24.535.1

Earnings per share

Millions of yen
2,497
2,084%
19.8
53.2

Millions of yen
2,678
2,187

Profit%22.4
43.9

Millions of yen
1,895
1,454%
30.3
44.6

Diluted earnings per share

Yen
97.71
75.33

Year ended June 30, 2017
Year ended June 30, 2016

Ordinary profit

Yen
97.46
74.79

* The Company implemented a 2-for-1 common stock split on April 1, 2016. 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, 2017
As of June 30, 2016
Reference: EquityNet assets

Millions of yen
14,8699,915
As of June 30, 2017
As of June 30, 2016

Millions of yen
6,045
4,877

Equity ratio

Net assets per share%
40.6
49.1

Yen
310.89251.79¥6,041 million¥4,872 million* The Company implemented a 2-for-1 common stock split on April 1, 2016. Net assets per share have been calculated based on the assumptionthat the stock split was implemented at the beginning of the previous fiscal year.
* Financial results reports are not required to be audited.
* 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 currently 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 variousfactors.
(Method for obtaining materials for financial results meeting)
Financial results meeting for institutional investors and analysts will be held on Thursday, August 10, 2017. 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(Thousands of yen)
As of June 30, 2016

As of June 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,930,496
4,060,115

4,581,972
6,245,524

Deferred tax assets
Other400,482593,005

529,790642,408

Total current assets

8,984,101

11,999,695

189,314(70,649)

319,814(81,302)

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

118,664

238,511

93,200206,212

107,198
286,715(161,879)(204,454)

44,33382,261

256,198

427,970

Intangible assets
Goodwill

2,006,108

3,681,754

SoftwareLeased assets

186,310
3,609

163,321
–

6,633

135

2,202,661

3,845,211

Deferred tax assets
Other

28,337442,701

25,954506,233

Total investments and other assets

471,039

532,187

2,929,899

4,805,369

11,914,000

16,805,065

Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets4

(Thousands of yen)
As of June 30, 2016

As of June 30, 2017

Liabilities
Current liabilities
Short-term loans payable

1,900,000

1,075,934––

196,000
300,000

6,216
2,394,623

1,379
3,031,668

Income taxes payable
Accrued consumption taxes

638,511644,290812,290742,448

Provision for bonuses
Other397,992
549,865

600,943
880,668

Total current liabilities

6,531,500

7,641,333

Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Accrued expenses

Non-current liabilities
Bonds payable–

1,106,000

Long-term loans payable
Lease obligations

–
1,286

1,200,000
10

Net defined benefit liability
Deferred tax liabilities

35,786
20,13544,62824,031

Other

2,857

91,978

Total non-current liabilities

60,0672,466,649

6,591,568

10,107,983

Capital stockCapital surplus

1,538,690
696,175

1,562,705
720,190

Retained earnings
Treasury shares

3,089,478(397)

4,238,432(569)

Total shareholders' equity

5,323,946

6,520,758

Total liabilities
Net assets
Shareholders' equity

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

(327)

148

Foreign currency translation adjustment(5,613)73,917

Total accumulated other comprehensive income(5,940)74,065

4,427

4,028

Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

5–98,2305,322,432

6,697,082

11,914,000

16,805,065

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2016

Fiscal year ended
June 30, 2017

Net sales

30,143,636

43,035,463

Cost of sales

22,951,055

33,690,697

Gross profit

7,192,581

9,344,766

Directors' compensations
Salaries and allowances

227,990
1,767,041

225,224
2,216,035

Retirement benefit expenses
Offering cost

13,748352,331

16,219448,897

Taxes and dues
Other66,613
2,215,707

158,8443,059,162

Total selling, general and administrative expenses

4,643,432

6,124,385

2,549,148

3,220,381

724
6,716

251
23,493

Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income
Subsidy income
Other

4,190

2,149

11,63125,895Interest expenses
Bond issuance cost

14,929–27,37720,083Foreign exchange losses
Share of loss of entities accounted for using equity method

16,988
–

6,359
3,766

Total non-operating income
Non-operating expenses

Other298

3,030

32,216

60,6172,528,564

3,185,658

Gain on sales of non-current assets
Gain on reversal of subscription rights to shares

22,486–179
209

Total extraordinary income

22,486388

1,669

34,636

1,669

34,636

Profit before income taxes

2,549,380

3,151,410

Income taxes - current

1,174,906

1,286,360

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

Income taxes - deferred(149,358)(93,231)

Total income taxes

1,025,547

1,193,129

Profit

1,523,8331,958,280–

34,324

1,523,833

1,923,956

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

6

Consolidated statements of comprehensive income(Thousands 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, 2016

June 30, 2017

1,523,833

1,958,280(388)(2,164)475
68,106–967(2,552)

69,549

1,521,280

2,027,830

1,521,280

2,003,963–

23,867

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, 2016
(Thousands of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,529,690

687,175

9,000

9,000

Retainedearnings
2,193,146

Treasury shares

Total
shareholders'equity(177)

4,409,835

Changes of items during periodIssuance of new shares

18,000

Dividends of surplus(627,501)(627,501)

Profit attributable to owners ofparent

1,523,833

1,523,833

Purchase of treasury shares

(220)

(220)

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

9,000

9,000

896,331(220)

914,110

1,538,690

696,175

3,089,478(397)

5,323,946

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period61

Foreigncurrencytranslation
adjustmentTotalSubscription
accumulated
Total net assets
rights to shares
othercomprehensive
income(3,449)(3,388)–4,406,446

Changes of items during period
Issuance of new shares

18,000

Dividends of surplus(627,501)

Profit attributable to owners ofparent

1,523,833

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

(220)
(388)

(2,164)(2,552)

4,427

1,874

Total changes of items during
period(388)(2,164)(2,552)

4,427

915,985

Balance at end of current period(327)(5,613)(5,940)4,427

5,322,432

8

Fiscal year ended June 30, 2017
(Thousands of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,538,690

696,175

24,01524,015Retainedearnings
3,089,478

Treasury shares

Total
shareholders'equity(397)

5,323,946

Changes of items during period
Issuance of new shares

48,030

Dividends of surplus(775,003)(775,003)

Profit attributable to owners ofparent

1,923,956

1,923,956

Purchase of treasury shares

(171)

(171)

Net changes of items other thanshareholders' equity
Total changes of items during
period24,01524,015

1,148,953(171)

1,196,812

Balance at end of current period

1,562,705

720,190

4,238,432(569)

6,520,758

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period(327)

Foreigncurrencytranslation
adjustment

Total
Subscription Non-controlling
accumulated
Total net assets
rights to sharesinterests
othercomprehensive
income(5,613)(5,940)4,427–

5,322,432

Changes of items during period
Issuance of new shares

48,030

Dividends of surplus(775,003)

Profit attributable to owners ofparent

1,923,956

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

(171)
475

79,53180,006(399)

98,230177,838

Total changes of items during
period475

79,53180,006(399)

98,2301,374,650

Balance at end of current period

148

73,91774,065

4,028

98,2306,697,082

9

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2016

June 30, 2017

2,549,380

3,151,410

Depreciation
Amortization of goodwill

105,843
236,495

142,776
382,409

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

54,808(6,105)

142,177(15,954)

Interest and dividend income
Interest expenses(734)
14,929(272)
27,377

–

3,766

–
1,669

20,083
34,636

Decrease (increase) in notes and accounts receivable - trade
Increase (decrease) in accrued expenses(631,781)
356,263(985,706)
550,666

Other, net(172,852)

55,272Subtotal

2,507,917

3,508,644

734

272

Interest expenses paid
Income taxes paid

(15,721)(1,074,256)(35,551)(1,198,423)

Net cash provided by (used in) operating activities

1,418,674

2,274,942(61,978)(148,838)(126,581)(43,741)(1,979,219)(2,150,524)

Share of (profit) loss of entities accounted for using equity
methodBond issuance cost
Loss on retirement of non-current assets

Interest and dividend income received

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
Purchase of shares of subsidiaries and associates–(15,150)

Payments for transfer of businessNet decrease (increase) in lease and gurantee deposits(108,000)(112,421)–(40,252)

Proceeds from sales of investments in real estates
Other, net

598,650(17,888)–
2,990

Net cash provided by (used in) investing activities(1,807,438)(2,395,517)

Cash flows from financing activities
Increase in short-term loans payable

2,300,000

3,000,000(400,000)–(4,284,805)
1,500,000

Proceeds from issuance of bonds
Redemption of bonds––

1,379,916(98,000)

Repayments of lease obligations
Cash dividends paid

(7,018)(627,299)(6,246)(774,262)

Decrease in short-term loans payable
Proceeds from long-term loans payable

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

22,206

47,6681,287,887

764,269

Effect of exchange rate change on cash and cash equivalents(7,605)

7,782

Net increase (decrease) in cash and cash equivalents

891,518

651,476

Cash and cash equivalents at beginning of period

3,038,9783,930,496

Cash and cash equivalents at end of period

3,930,496

4,581,972

10