Briefing Materials For the TRANCOMGROUP Financial Results
2nd Quarter of the Fiscal Year Ending March 2021
Securities Code:9058
October 27,2020

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Contents
1

FY2020 Points

P.3

2

FY2020 2Q Results

P.4

3

FY2020 Full Year Forecast

P.12

4
5

Financial Status and Investment &Shareholder Return Policy
Towards Building a “Transportation
System”

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

P.16
P.19

2

2nd Quarter of the Fiscal Year Ending March 2021
Presentation Points
FY2020 2Q Results▪ The logistics information service business and the industrial support business were operating in a harshmarket environment.
(Logistics Information Service Business) A significant reduction in the amount of cargo information(Industrial Support Business ) Impact from the closure of automobile-related production plants and production cuts.

▪ With regards to fluctuation in the volume of cargo due to the coronavirus pandemic, the logistics
management business, which has been promoting operational efficiency, saw a significant increase inprofits.
▪ In each business segment, we continued to work on appropriate staffing, improvement in operational
efficiency, and cost reductions which improved the operating profit margin (up 0.3 points YoY).

Forecast for FY2020 Results & Dividend▪ While the amount of cargo information in the logistics information service business is gradually
recovering, it is expected that an impact will remain in this FY.
▪ As for the expected annual dividend, carrying on from the previous FY, the plan is to increase it. Details on P. 18

Long-Term Vision - Towards Building a “Transportation System” Details from P. 19
Make full use of the services of the TRANCOM Group to strongly promote the efficiency of “transportation”
in Japan
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

3

1

FY2020 Points

P.3

2

FY2020 2Q Results

P.4

3

FY2020 Full Year Forecast

P.12

4
5

Financial Status and Investment &Shareholder Return Policy
Towards Building a “Transportation
System”

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

P.16
P.19

4

FY2020 2Q Results

YoY▪ In a difficult business environment, revenue and profits decreased in the first quarter, but inthe second quarter, we worked to reduce costs in each business, and we curbed the decline
in profits for the 2Q cumulative total.
▪ Net profit increased by 8.5% due to the recording of novel coronavirus subsidies (nonoperating income) and a drop in corporate taxes paid.

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

5

FY2020 2Q Results by Segment(Millionsof Yen)（単位：百万円）
２０２０年３月期
FY20191Q
第１四半期

1st上半期累計
Half Total

2Q
第２四半期

第１四半期
1Q

２０２１年３月期
FY2020

2Q
第２四半期

YoY
前期比

YoY
前期比

1st
Half Total
上半期累計

YoY
前期比

Logistics

売 Sales
上 高

13,213

13,77526,98913,751

4.1%

13,700-0.5%

27,451

1.7%

マネジメント事業
Business

Operating Profit
営
業 利 益

754

919

1,673

1,016

34.7%

1,080

17.6%

2,097

25.3%

(% of Sales)（売上高比）(5.7%)(6.7%)(6.2%)(7.4%)(+1.7P)(7.9%)(+1.2P)(7.6%)(+1.4P)

Logistics

売 Sales
上 高

22,122

23,26345,385

18,492-16.4%

19,158-17.6%

37,651-17.0%

サービス事業
Service

営 業 利 益Operating Profit

719

886

1,606

539

-25.1%

782-11.7%

1,322-17.7%(% of Sales)（売上高比）(3.3%)(3.8%)(3.5%)(2.9%)(-0.4P)(4.1%)(+0.3P)(3.5%)(+0.0P)

売 Sales
上 高

1,843

1,891

3,735

1,494

-18.9%

1,367-27.7%

2,862-23.4%

ロジスティクスManagement

物流情報
Information

Business

Industrial
インダストリアル
Supportサポート事業
Business
Othersその他

Intercompany
連結消去
Eliminations

Consolidated
連結合計

Total

営 業 利 益Operating Profit

78

100

178

24

-68.8%

22-77.5%

47-73.7%(% of Sales)（売上高比）(4.3%)(5.3%)(4.8%)(1.6%)(-2.7P)(1.6%)(-3.7P)(1.6%)(-3.2P)

売 Sales
上 高

2,433

2,426

4,859

2,656

9.2%

2,866

18.2%

5,523

13.7%

Operating Profit
営
業 利 益

144

117

262

23

-83.8%

168

43.5%

192

-26.7%(% of Sales)（売上高比）(5.9%)(4.8%)(5.4%)(0.9%)(-5.0P)(5.9%)(+1.1P)(3.5%)(-1.9P)

売 Sales
上 高

-372

-379

-751

-462

-

-379

-

-842

-

Operating Profit
営
業 利 益

-19

-29

-48

-32

-

-34

-

-66

-

(% of Sales)（売上高比）

-

-

-

-

-

-

-

-

-

売 Sales
上 高

39,24040,97780,21735,932-8.4%

36,712-10.4%

72,645-9.4%

Operating Profit
営
業 利 益

1,678

1,994

3,672

1,572

-6.3%

2,020

1.3%

3,592

-2.2%

(4.3%)(4.9%)(4.6%)(4.4%)(+0.1P)(5.5%)(+0.6P)(4.9%)(+0.3P)(% of Sales)（売上高比）

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6

FY2020 2Q Results by Segment
Logistics Management Business
Sales, Operating Profit,
Operating Profit Margin
Sales(Millionsof Yen)Sales

Operating
ProfitOperatingOperating
ProfitProfit Margin (Millions
of Yen)Change in Sales(Millions of Yen)

27,451

26,989[Main factors for the change]▪ Contribution of operating locations last FY and this FY

Composition of Items Handled (FY2020 2Q Sales)▪ The early and stable operation of new locations this FY▪ An increase in the volume of cargo as needs for individual

1.9%
1.9%

5.5%

Food

12.7%
15.9%

delivery rose
▪ Increased profitability by improving operational efficiency
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Medicine & cosmetics andsanitary goods

20.8%

41.3%

General goods
Co-op
Furniture & housing equipment
Consumer electronics, electronicequipment & machinery
Others7

FY2020 2Q Results by Segment
Logistics Management Business
Status of New Business Acquisition & Operation■ Operation of a center complex in the category of sanitary goods and daily necessities(Saitama) (April 2020)■ Operation of an in-house center for a manufacturer of medicine & cosmetics(Toyama) (April 2020)■ Opening of a logistics center that serves as a central base for delivery(Aichi ) (Scheduled to begin operation in November 2020)

Realization of Powerful Management Abilities for Logistics Centers■ Preparing to automate case picking work to save on labor at logistics centers(Scheduled to begin operation in 4Q)■ Thorough safety, security, and quality, and preparing a proper working environment with operating companies in each area

▪ Revision of the personnel system (realization of career developmentby newly establishing specialists)▪ Supporting legal and regulatory compliance (equal pay for equal work)▪ Creating organized logistics centers
Renewal of uniforms to boost work efficiency▲Trancom uniform

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▲Trancom DS uniform(individual delivery)8

FY2020 2Q Results by Segment
Logistics Information Service Business
Cargo Information Numbers(Thousands)

2018

900

600

2020

(Thousands)

631

747 707

637

717

1,000

671
570

500

458

386

400

800

2019

Trucks Dispatched

2020(Thousands)

450

1,019

400

882
777 772

859

799

746

1Q

2Q

3Q

4Q

0

2020

365

298 324

309

388
352

336

356

200
150
100

200

100

345

352

2019

250

400

200

350

2018

300

677

647

616

600

300

0

2018

1,200

807

800
700

2019

Empty Truck Information Numbers

50

1Q

2Q

3Q

4Q

0

1Q

2Q

3Q

4Q

Building a Business Foundation that is not Affected by the Market Environment■ Strengthening sales to the manufacturing industry by going from spot cargo to securing regular cargo■ Building a strong organizational structure

Sales, Operating Profit, Operating Profit
MarginPercentage Change in Cargo Information
Numbers by Month (YoY)▪ Appropriate staffing▪ Improvement of operational efficiency▪ Cost reductions

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9

FY2020 2Q Results by Segment
Logistics Information Service Business - Change in Information Numbers
Change in Information Numbers (Apr. 2009 - Sept. 2020)(Number)

Trucks Dispatched(Partners)

Trucks
Dispatched

Cargo
Information
Numbers

Empty Truck
Information Numbers

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10

FY2020 2Q Results by Segment
Industrial Support Business & Others
Industrial Support Business
Sales, Operating Profit, Operating Profit Margin[Main factors for the change][Main factors for the change]▪ Plant closures and production cuts by customers▪ Revision in appropriate staffing

OthersSales, Operating Profit, Operating Profit Margin▪ Consolidation of Sergent Services Pte Ltd▪ Production recovery for the logistics business in China from 2Q▪ Recording of new technology acquisition costs in the domestic
IT department■ Foreign exchange

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China (15.69 yen → 15.23 yen / CNY)
Thailand (3.50 yen → 3.49 yen / THB)

11

1

FY2020 Points

P. 3

2

FY2020 2Q Results

P. 4

3

FY2020 Full Year Forecast

P. 12

4

Financial Status and Investment &Shareholder Return Policy

P. 16

Towards Building a “Transportation
System”

P. 19

5

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12

Assumptions for FY2020 Full Year Forecast
Formulating the Full Year Forecast for the FY2020 Results▪ Uncertainty is expected to continue with regards to the outlook for the timing of the end of the novel
coronavirus pandemic, and the market environment▪ For the logistics information service business, assuming that the difficult situation will continue at least
within this fiscal year, we are pursuing a profit structure that is not affected by the market environment▪ We will continue to implement company-wide cost controls▪ Utilizing the strong financial base that we have built up, we will promote active investment to create a“transportation system”

Understanding the Business Environment by Segment
Logistics Management
Business▪ The volume of cargo for consumer goods is expected to be flat.
▪ With the impact of the coronavirus, the volume of cargo for non-consumer goods is expected to keep declining.

Logistics Information
Service Business▪ While the impact of the decline in domestic volume for goods transported will continue, the cargo information
numbers are expected to gradually recover from the 4Q.
▪ While transportation prices are expected to decrease YoY, it is assumed that it will gradually become the sameas the previous year.

Industrial Support
Business
Others(Overseas & Japan)▪ Due to uncertainties about the future of the domestic manufacturing industry, worker dispatching services did not
return to the previous year's level.
▪ The Chinese domestic market is on a recovery trend.
▪ The domestic IT department expects weak demand due to sluggish development needs.
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13

FY2020 Full Year Forecast▪ Assuming the continuation of a harsh business environment, we will continue our first half
initiatives, and for the full year we are planning a profit increase while sales decrease.

YoY(Millions of Yen)
（単位：百万円）
FY2019２０２０年３月期

２０２１年３月期（予想）FY2020 (Forecast)
1st Half
上半期

下半期
2nd
Half
(Forecast)

1st Half

上半期

2nd Half

下半期

Full通期Year

高80,217

83,245

163,463

72,645-9.4%

76,350-8.3%

149,000-8.8%

Operating営 業 利Profit
益

3,672

3,893

7,566

3,592

-2.2%

4,050

4.0%

7,640

1.0%

（売上高比）(% of Sales)(4.6%)(4.7%)(4.6%)(4.9%)(+0.3P)(5.3%)(+0.6P)(5.1%)(+0.5P)

Recurring
経 常 利Profit
益

3,630

3,787

7,417

3,666

1.0%

4,110

8.5%

7,770

4.7%

(% of Sales)(4.5%)(4.5%)(4.5%)(5.0%)(+0.5P)(5.4%)(+0.9P)(5.2%)(+0.7P)

2,362

2,546

4,909

2,562

8.5%

2,710

6.4%

5,270

7.3%

(2.9%)(3.1%)(3.0%)(3.5%)(+0.6P)(3.5%)(+0.4P)(3.5%)(+0.5P)

売

Sales
上

（売上高比）Net Profit Attributable
親会社株主に帰属す
to Parent Company

る 当期 純 利 益Shareholders(% of Sales)（売上高比）(Actual)

（実績）

YoY
前期比

（予想）

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YoY
前期比

Full通期
Year

YoY
前期比

14

FY2020 Full Year Forecast by Segment(Millions of Yen)
（単位：百万円）
FY2019２０２０年３月期

Logistics
ロジスティクスManagement
マネジメント事業
Business

Logistics
物流情報
Information
Service
サービス事業
Business
Industrial
インダストリアル
Supportサポート事業
Business

その他
OthersIntercompany
連結消去
Eliminations

Consolidated
連結合計
Total

FY2020(Forecast)２０２１年３月期（予想）
1st Half
上半期(Actual)2nd Half
下半期(Forecast)

YoY

Full通期
Year

YoY
前期比

1st
Half
上半期

2nd
Half
下半期

売 Sales
上 高

26,98928,03555,02427,451

1.7%

27,300-2.6%

54,750-0.5%

営業利益
Operating Profit

1,673

1,968

3,642

2,097

25.3%

2,310

17.4%

4,410

21.1%

(% of Sales)（売上高比）(6.2%)(7.0%)(6.6%)(7.6%)(+1.4P)(8.5%)(+1.5P)(8.1%)(+1.5P)

売 Sales
上 高

45,38547,03392,41837,651-17.0%

41,320-12.1%

78,970-14.6%

営業利益
Operating Profit

1,606

1,665

3,272

1,322

-17.7%

1,620

-2.7%

2,940

-10.2%(% of Sales)（売上高比）(3.5%)(3.5%)(3.5%)(3.5%)(+0.0P)(3.9%)(+0.4P)(3.7%)(+0.2P)

売 Sales
上 高

3,735

3,567

7,302

2,862

-23.4%

2,680-24.9%

5,550-24.0%

Operating Profit
営
業利益

178

52

231

47

-73.7%

30-42.7%

80-65.4%(%
of Sales)（売上高比）(4.8%)(1.5%)(3.2%)(1.6%)(-3.2P)(1.1%)(-0.4P)(1.4%)(-1.8P)

売 Sales
上 高

4,859

5,462

10,321

5,523

13.7%

5,750

5.3%

11,2709.2%

Operating Profit
営
業利益

262

299

561

192

-26.7%

150-49.8%

340-39.4%(% of Sales)（売上高比）(5.4%)(5.5%)(5.4%)(3.5%)(-1.9P)(2.6%)(-2.9P)(3.0%)(-2.4P)

売 Sales
上 高

-751

-853

-1,605

-842

-

-700

-

-1,540-Operating Profit
営業
業利
利益
営
益

-48

-91

-140

-66

-

-60

-

-130

-

(%
of Sales)（売上高比）

-

-

-

-

-

-

-

-

-

売 Sales
上 高

80,217

83,245

163,463

72,645-9.4%

76,350-8.3%

149,000-8.8%

営Operating
業
利益
Profit

3,672

3,893

7,566

3,592

-2.2%

4,050

4.0%

7,640

1.0%

(4.6%)(4.7%)(4.6%)(4.9%)(+0.3P)(5.3%)(+0.6P)(5.1%)(+0.5P)(% of Sales)（売上高比）

Full
Year
通期

YoY
前期比

（実績）

前期比

（予想）

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15

1

FY2020 Points

P. 3

2

FY2020 2Q Results

P. 4

3

FY2020 Full Year Forecast

P. 12

4
5

Financial Status and Investment &Shareholder Return Policy
Towards Building a “Transportation
System”

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

P. 16
P. 19

16

2nd Quarter of the Fiscal Year Ending March 2021
Cash Flow and Financial Status
Consolidated Cash Flow Statement

Consolidated Balance Sheet(Millions of Yen)

(Millions of Yen)

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17

FY2020
Investment & Shareholder Return Policy
Operating Cash Flow, Capital Investment and Dividend Total Amount

Change in Dividend Per Share(Millions of Yen)
9,000

■Operating cash flow
■Land & buildings ■Vehicles■Dividend total amount■Machinery, equipment & fixtures ■Software

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

FY2018FY20191 FY2015
2 3 4 FY2016
5 6 7 FY2017
8 9 10 11
12 13 14
15

(Forecast)● Investment in automation of center operations● System investment in logistics information services● Introduction of in-house vehicles to master “transportation”● Plan to increase the dividend for 20th consecutive FY

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18

1

FY2020 Points

P. 3

2

FY2020 2Q Results

P. 4

3

FY2020 Full Year Forecast

P. 12

4
5

Financial Status and Investment &Shareholder Return Policy
Towards Building a “Transportation
System”

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

P. 16
P. 19

19

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”
Long-Term
VisionMediumTerm Vision

Main
Policies for
the Medium
Term

Creating an advanced “transportation system” unique to TRANCOM= Build a platform that is widely used by many shippers and logistics
companies

Build a service that pursues the optimization of “transportation” byenhancing the “methods of transport” and “transport categories”

Creating “methods of transport” that make the most of limited
transportation and delivery capacity

Creating a variety of“transport categories” across industries
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20

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”■ Further strengthen cooperation between each business, create a strong sales structure and promote a sense of speed

Logistics Information
ServiceIndustrial Support

Dealings possible from a single
spot cargo

Dealings possible from thedispatching of a single worker

Automotive Logistics

An approach to the manufacturing industry that leads to “transportation”

Logistics Management

Cooperation&
Sharing

Sales Promotion Group (Newly Established)
Promotion of company-wide sales with "transportation" as the starting point

Strengthening the ability of “transportation”
to handle things

Expanding the area of “transportation”

STEP 1

Increasing the amount of “transportation” in Japan

STEP 2

Digitization and optimal coordination
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21

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”
Areas Covered by Each Business and Future Development
STEP 1

Increasing the amount of “transportation” in Japan
Medicine &cosmetics← Businesses →Logistics Information
Service

Sanitary goods← Areas →FoodGeneral goods● Getting stable cargo● Supporting various modes for “methods of transport”

STEP 2

Details 1● Getting 3PL business that leads to “transportation”● Tackling the challenge of new industries and areas● Expanding business
operations to other industries

Industrial Support

Re_solnet

Industrial
goods● Supporting changes in
how automobiles are madeAutomotive Logistics

Logistics
Management

Automobiles● Building a scheme for collecting (reusing) logistics
equipment

Details 2

For Digitization● Promoting DX & digitization

Details 3● Promoting automation for logistics center
operations

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Details 4

22

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System” (Examples)
Various modes for “methods of transport” and “transport categories”

Details 1

Relay Transportation● Switch method (changing the head)
Reload method (reload to another vehicle)

Drayage Transportation● Expanded handling of international and port cargo Expanding “modes oftransportation”▪ In-house operations at the Port of Kawasaki▪ Starting drayage operations at the Port ofNagoya, following on from Osaka and Tokyo
Increasing “transport(November 2020)
categories”

Changing “methods oftransport”
Shizuoka area relay
Chugoku area relay

Consolidated Transportation● Strengthen consolidated transportation of medium-lot cargo● Consolidated transportation utilizing the facilities of GLP
Japan as a cross-dock center

Increasing “transport
categories”

Changing “methods oftransport”

Co-operative Transportation● Co-operative transportation using double-connected trucks incollaboration with the Hino Group● Co-operative transportation beyond the industries of existingcustomers

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Changing “methods oftransport”

23

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”
Details 2 Trancom's unique collection logistics utilizing the network of load matching services
Efficiently collect pallets that pile up in logistics centers, etc., and realize the building of a pallet recycling system● Expanding the amount of pallets handled● Building a pallet management system▼ Vacant pallet collection scheme and the environment surrounding pallets

Estimated number of pallets indistribution (annual)

Manufacturing Industry
Daily
Necessities

ConfectioneryFood

10 million

8.6 million

30 million*Our own
research

Wholesale Business
Daily
Necessities...

Confectionery

Food

...

Pallet Operators

Factories

Logistics centers

Wholesale & customer centers

RentalCompanies

Collection
DeliveryTransfer

Trancom depot

Rental depot

Pallet Association

Reverselogistics

Manufacturers

Beverages

Paper
Manufacturing

ConsumerElectronics

40 million

4.5 million

1.5 million

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...

24

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”
Promoting DX & Digitization

Details 3■ Information acquired by logistics information = Utilization of big data
Image of Data Utilization
Information
Acquisition

Feedback
CTI
Record the number, time and detailsof contacts and analyze call activity▪ Performance visualization(How often telephoned and frequently used
words...)▪ Speech analysis(Understanding needs and complaints)

Data Analytics
Analyze the data collected from each system andpresent a specific action plan
▪ What are the factors behind the increase and decrease inbusiness transactions?
▪ How to connect to continuous business transactions?

Verification

Basic Systems
Accumulating empty truck
and cargo information

Business Intelligence
Visualize achievements and understand thereality from a management perspective

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25

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”
Details 4

Introduction of automation at logistics centers (case picking work)■ Promote automation of case picking work and accumulate know-how in collaboration with Chinoh.
Ai Co., Ltd., a company that we have a capital and business alliance with

Instead of “full automation”, reduce man-hours via “labor saving”
Delivery from a warehouse in pallet units

Storage

Automate case picking work withconventional forklifts
Warehouse operations

Palletstorage

RGV(Automated storage)
Replenish

AGV(Automated handlingrobot)

Mobileracks

Replenish*Patent pending for
an automated robotthat combines RGV and AGV

Deliveryfrom thewarehousein pallet units

DeliveryArrivalLay flat

Pickingrobot

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26

TRANCOM VISION - Future Direction of the BusinessInitiatives Toward Building a “Transportation System”

Strengthening in-house
functions and services

Strengthening cooperation
with partners

Increase the “amount” oftransportation,and expand areas andthe ability to handle

Cooperate with partners in areas
and functions thatcannot be done by our company
alone

Creating an advanced “transportation system” unique to TRANCOM= Build a platform that is widely used by many
shippers and logistics companies

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27

For inquiries related to investor relations and this document,
please contact the following.
Email: ir_info@trancom.co.jp

Corporate Planning GroupTEL: 052-939-2023

FAX: 052-939-2015*This document contains forward-looking statements such as forecasts based on information at the time of preparation.
Please be aware that the actual results may differ due to changing elements and risk factors in the future.

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