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 Nine Months Ended December 31, 2018
(Based on Japanese GAAP)
January 28, 2019
Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
URL https://www.trancom.co.jp/ir/
President and COO
Yutaka Tsunekawa

Inquiries:

Senior Executive Officer Corporate planning
Keisuke Nakazawa
Group / Management Group

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

February 8, 2019–

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

NoNoTEL(052)939-2011(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changesProfit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2018
113,850
6.6
5,205
15.2
5,176
15.1
3,520
29.4
Nine months ended December 31, 2017
106,809
7.4
4,519
5.9
4,495
8.2
2,720 (18.0)
Earnings per share

Diluted earnings per shareYen
361.34280.11

Nine months ended December 31, 2018
Nine months ended December 31, 2017

Yen
360.41
279.34(2) Consolidated financial position
Total assets

Net assetsMillions of yen
50,79748,077

As of December 31, 2018
As of March 31, 2018

Equity ratio

Millions of yen
33,29930,349Net assets per share
%
65.2
62.8

Yen
3,384.88
3,110.99

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
40.00
44.00

Yen––

Yen
42.00

Yen
82.00

44.00

88.00

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Net sales
Full year

Millions of yen
149,350

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
5.4
6,500
9.3
6,450
9.2
4,340
19.8
443.62

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2018(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:

NoNo

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 December 31, 2018

10,324,150 shares As of March 31, 2018

10,324,150 shares

Number of treasury shares at the end of the period
As of December 31, 2018

540,725 shares As of March 31, 2018612,982 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2018

9,742,104 shares Nine months ended December 31, 2017

2

9,710,568 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

10,25822,235

10,94923,852MerchandiseWork in process

13
17

21
3Supplies
Prepaid expenses

18544

20565

Other
Allowance for doubtful accounts

275
(0)

296
(0)

33,36335,708

7,676(4,193)

7,846(4,385)

Buildings and structures, net

3,483

3,460

Machinery, equipment and vehicles
Accumulated depreciation

4,654(3,517)

5,065(3,856)

1,136

1,209

2,701
2,280

2,701
2,313

Accumulated depreciation(1,241)(1,367)

Leased assets, net

1,039

945

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

Machinery, equipment and vehicles, net
Land
Leased assets

Construction in progress

12167

1,014(698)

1,086(760)

316

326

8,688

8,811

482
1,658

418
1,505

Software in progress
Customer Relationship

17556

204
483

Other

169

167

2,885

2,779

Investment securities
Deferred tax assets

1,301
522

1,530
503

Guarantee deposits
Other

1,184
153

1,324
162

(21)

(21)

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
GoodwillSoftware

Total intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

3,139

3,498

14,71315,08948,07750,797

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Accounts payable - trade

10,326

10,656

Lease obligations
Accounts payable - other232
528

240
270

Accrued expenses
Income taxes payable

1,587
932

1,785
648

Accrued consumption taxes
Provision for bonuses

469
560

528
206

Provision for directors' bonuses
Other

26506

21591

15,17014,948

Total current liabilities
Non-current liabilities
Lease obligations

1,153

1,045

Deferred tax liabilities
Deferred tax liabilities for land revaluation

139
11120
11

Provision for stocks payment
Provision for Management Board Incentive Plan Trust

169
148

199
190

Net defined benefit liability
Asset retirement obligations

106
452

91
518

Other

376

370

Total non-current liabilities

2,557

2,549

17,727

17,497

Capital stock
Capital surplus

1,080
1,220

1,080
1,624

Retained earnings
Treasury shares28,765(1,053)31,443(933)

Total shareholders' equity

30,012

33,213188(7)26(24)

26(120)Total liabilities
Net assets
Shareholders' equity

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

84

198

(97)

Share acquisition rights

111

104

Non-controlling interests

26

79

30,34933,29948,07750,797

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)
Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

Net sales

106,809

113,850

Cost of sales

100,388

106,700

Gross profit

6,420

7,149

Selling, general and administrative expenses

1,901

1,943

Operating profit

4,519

5,205

1115–

1015–

47

52

74

79

85

78

Share of loss of entities accounted for using equity method
Loss on retirement of non-current assets

3––
19

Other

911

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Gain on reversal of loss on dissolution of employees pension
fund
Other
Total non-operating income
Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets

98

108

4,495

5,176

8–

8–

48–

Compensation expenses
Other

181
14–
–

Total extraordinary losses

244–

Profit before income taxes

4,259

5,176

Income taxes - current
Income taxes - deferred

1,394
154

1,508
94

Total income taxes

1,549

1,603

Profit

2,710

3,572

2,720(9)3,520
52

Other comprehensive income
Valuation difference on available-for-sale securities

143(196)

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

25(3)

(96)
(4)

Total other comprehensive income

165(297)

Comprehensive income

2,875

3,275

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,883

3,223(8)52

Profit attributable toProfit attributable to owners of parent
Profit (loss) attributable to non-controlling interests

Comprehensive income attributable to non-controlling interests5