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, 2016
(Based on Japanese GAAP)
October 31, 2016
Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
URL http://www.trancom.co.jp/ir/index.html
President and COO
Yutaka Tsunekawa

Inquiries:

Executive Officer, in charge ofAdministration GroupToru Iwao

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:TEL(052)939-2011

November 10, 2016
December 2, 2016
Yes
Yes

(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2016
64,6304.5
2,460(8.7)
2,373 (11.5)
2,108
35.7
Six months ended September 30, 2015
61,857
13.0
2,695
14.8
2,679
16.0
1,553
14.5
Earnings per share

Diluted earnings per share

Yen
217.16160.10Six months ended September 30, 2016
Six months ended September 30, 2015

Yen
216.55
159.65(2) Consolidated financial position
Total assets

Net assets

Millions of yen
41,88042,113As of September 30, 2016
As of March 31, 2016

Equity ratio

Millions of yen
26,10924,628

Net assets per share%
61.7
58.2

Yen
2,663.30
2,524.56

2. Cash dividends
Annual dividends per share

Year ended March 31, 2016
Year ending March 31, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
34.00
39.00

Yen–

Yen
40.00

Yen
74.00

–

39.00

78.00

Year ending March 31, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Full year

Millions of yen
131,680

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
4.3
5,930
(1.4)
5,780
(3.4)
4,260
17.1
438.781

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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, 2016

10,324,150 shares As of March 31, 2016

10,324,150 shares

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

615,457 shares As of March 31, 2016

616,719 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2016

9,708,097 shares Six months ended September 30, 2015

29,703,951 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,708
19,337

5,816
19,423MerchandiseWork in process

17
1

115

Supplies
Prepaid expenses

17423

15541

Deferred tax assets
Other242
161

225
371

Allowance for doubtful accounts

(16)

(16)

27,893

26,395

7,225

7,623

Accumulated depreciation(3,711)(3,926)

Buildings and structures, net

3,513

3,697

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

Machinery, equipment and vehicles

3,323

3,866

Accumulated depreciation(2,535)(2,844)

788

1,021

Land

Machinery, equipment and vehicles, net

2,701

2,701

Leased assets
Accumulated depreciation

2,428(1,065)2,413(1,147)

Leased assets, net

1,363

1,266

Construction in progress
Other

63
880

–
949

(564)

(617)

Accumulated depreciation
Other, net

315

332

8,746

9,019

Intangible assets
Goodwill

261

1,238

Leased assets
Software

17
1,554

14
1,448

Software in progress
Customer Relationship

109–

127
588

Other

176

174

2,119

3,592

Investment securities
Deferred tax assets

1,403
444907
467

Guarantee deposits
Other

1,370
154

1,345
174

(19)

(21)

Total property, plant and equipment

Total intangible assets
Investments and other assets

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

3

3,353

2,872

14,220

15,485

42,11341,880(Millions of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities
Current liabilities
Accounts payable - trade

8,960

8,788

Short-term loans payable
Lease obligations

1,500
232

0234

Accounts payable - otherAccrued expenses285
1,211

385
1,287

Income taxes payable
Accrued consumption taxes

1,014
598

824
421

493
35

514
16

Provision for bonuses
Provision for directors' bonuses
Other

381

345

14,712

12,819

1,473
11

1,374
11

Provision for stocks payment
Provision for Management Board Incentive Plan Trust

100–

124
67

Reserve for loss on dissolution of employee's pension fundNet defined benefit liability

309
118

309
115

Asset retirement obligations
Other

410
348

441
506

Total non-current liabilities

2,772

2,951

17,485

15,770Shareholders' equity
Capital stock1,080

1,080

Capital surplus
Retained earnings

1,234
22,974

1,287
24,693

Treasury shares(966)(1,016)24,322

26,044

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

59
26

44
26

Foreign currency translation adjustment
Remeasurements of defined benefit plans

77
21(277)19

Total accumulated other comprehensive income

184(186)

115
5111
140

24,628

26,10942,11341,880Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities for land revaluation

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
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, 2015

Six months ended
September 30, 2016

Net sales

61,85764,630

Cost of sales

57,97060,828Gross profit

3,887

3,802

Selling, general and administrative expenses

1,192

1,342

Operating income

2,695

2,460

1111

Share of profit of entities accounted for using equity method
Other

2618–
14

Total non-operating income

56256358––

1120

Non-operating income
Interest and dividend income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Contribution
Other

721

Total non-operating expenses

71112

2,679

2,373

Ordinary income
Extraordinary income
Gain on sales of non-current assets

613

Gain on step acquisitions
Other–
0595
6

Total extraordinary income

7615

1834–

11309

–

00327

45

Profit before income taxes

2,3592,943

Income taxes - current
Income taxes - deferred

903
(92)

828
(2)

Total income taxes

810

826

1,548

2,116

1,553
(4)

2,108
8

Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of membership
Provision of reserve for loss on dissolution of employee's
pension fund
Other
Total extraordinary losses

ProfitProfit attributable toProfit attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities

(27)

(14)

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

(10)
(1)

(374)
(2)

Total other comprehensive income

(39)

(391)

Comprehensive income

1,508

1,725

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,515

1,736

(7)

(10)

Comprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2015

Six months ended
September 30, 2016

Cash flows from operating activities
Profit before income taxes
Depreciation

2,359
6642,943
718

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(6)
34

2
21

Increase (decrease) in provision for directors' bonuses
Increase (decrease) in Provision for stocks payment

(15)
22

(19)
23

Increase (decrease) in provision for management board
incentive plan trust–

67

Increase (decrease) in provision loss on dissolution of theemployee's pension fund309–

Increase (decrease) in net defined benefit liability
Interest and dividend income

(9)
(11)

(6)
(11)

Share of (profit) loss of entities accounted for using equity
method(26)

11Interest expenses
Loss (gain) on sales of non-current assets

63(6)58(13)

Loss on abandonment of non-current assets
Loss (gain) on step acquisitions

18–34(595)

Decrease (increase) in notes and accounts receivable trade

322

342

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade1(382)

4(619)

Increase (decrease) in accrued consumption taxes
Other, net(646)
98(175)259

Subtotal

2,790

3,046

1111

64

–

(63)

(58)

Interest and dividend income received
Proceeds from dividend income from entities accounted
for using equity method
Interest expenses paid
Income taxes paid

(1,012)(997)

Net cash provided by (used in) operating activities

1,790

2,001

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(294)
7(490)
15

Purchase of intangible assets
Purchase of securities

(83)
–(92)
(139)

Purchase of investment securities
Purchase of shares of subsidiaries and associates

(84)
–(0)
(6)

Purchase of shares of subsidiaries resulting in change inscope of consolidation–(1,063)

Payments of loans receivableCollection of loans receivable

(1)
30

(2)
0

Other, net(7)

(11)

(432)

(1,789)Cash flows from investing activities

Net cash provided by (used in) investing activities

6

(Millions of yen)Six months ended
September 30, 2015

Six months ended
September 30, 2016

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paidRepayments of lease obligations
Other, net

200
(12)

(1,500)
(0)

–0

(68)
71

(320)
(122)

(389)
(97)

(2)

–

Net cash provided by (used in) financing activities(258)(1,983)

Effect of exchange rate change on cash and cash equivalents

(12)

(120)

Net increase (decrease) in cash and cash equivalents

1,086(1,891)

Cash and cash equivalents at beginning of period

4,950

7,708

Cash and cash equivalents at end of period

6,036

5,816

7