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 March 31, 2019
(Based on Japanese GAAP)
April 25, 2019
Company name:

TRANCOM CO.,LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
9058
URL

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

Representative:

President and COO
Senior Executive Officer

Yutaka Tsunekawa

Inquiries:

Corporate Planning Group / ManagementGroupkeisuke Nakazawa

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 20, 2019
June 21, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 21, 2019
Yes

Holding of financial results meeting:

Yes

TEL

(052)939-2011(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
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%
Year ended March 31, 2019
151,111
6.6
6,733
13.3
6,651
12.6
4,328
19.5
Year ended March 31, 2018
141,728
6.3
5,944
4.6
5,909
6.6
3,622(2.3)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
442.72
13.5
13.2
4.5
371.99
12.6
12.7
4.2

Diluted earnings pershareEarnings per shareYen
443.86373.02

Year ended March 31, 2019Year ended March 31, 2018
(2) Consolidated financial position

Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
52,95748,077

Millions of yen
34,18030,349Cash flows fromoperating activities
Millions of yen
6,592
4,678

Cash flows frominvesting activities
Millions of yen(2,567)(1,418)

Net assets per share%
64.2
62.8

Yen
3,474.40
3,110.99(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(564)
13,675(1,287)
10,258

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

40.00
44.00

––

42.00
48.00

82.00
92.00

800905

22.0
20.7

2.8
2.8

–

49.00

–

49.00

98.00

120.2

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Six months ending
September 30, 2019
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

76,690

4.6

3,080

3.2

3,050

2.4

2,010

0.4

205.45

158,850

5.1

7,270

8.0

7,200

8.24,750

9.7

485.52

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(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
Changes in accounting policies due to revisions to accounting standards and other regulations:No
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 March 31, 2019

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 March 31, 2019

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

Average number of shares during the period
Year ended March 31, 2019

9,752,293 shares Year ended March 31, 2018

2

9,710,716 shares

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

As of March 31, 2019Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade

10,25819,286

13,67520,089

Electronically recorded monetary claims - operating
Merchandise

2,949
13

3,186
19

Work in process
Supplies

1718

123

Prepaid expenses
Other

544
275

565
108

Allowance for doubtful accounts

(0)

(0)

33,36337,669

7,676

7,867

Accumulated depreciation(4,193)(4,446)

Buildings and structures, net

3,483

3,420

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

Machinery, equipment and vehicles

4,6545,227

Accumulated depreciation(3,517)(3,973)

Machinery, equipment and vehicles, net

1,136

1,254

Land

2,701

2,701

Leased assets
Accumulated depreciation

2,280(1,241)

2,284(1,371)

Leased assets, net

1,039

912

Construction in progress
Other

12
1,014

232
1,147(698)(731)

Accumulated depreciation
Other, net

316

416

8,688

8,937

482

367

Software
Software in progress

1,658
17

1,348
251

Customer Relationship
Other

556
169

457
165

Total intangible assets

2,885

2,590

Investments and other assets
Investment securities

1,301

1,632

Deferred tax assets
Guarantee deposits

522
1,184

654
1,332

Other
Allowance for doubtful accounts

153
(21)

162
(21)

Total investments and other assets

3,139

3,759

14,713

15,28748,077

52,957

Total property, plant and equipment
Intangible assets
Goodwill

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Accounts payable - trade

10,326

10,893

Lease obligations
Accounts payable - other232
528

246
407

Accrued expenses
Income taxes payable

1,587932

1,582
1,390

Accrued consumption taxes
Provision for bonuses

469
560

588
598

Provision for bonuses for directors (and other officers)
Other

26
506

–537

15,170

16,245

Total current liabilities
Non-current liabilities
Lease obligations

1,153

1,002

Deferred tax liabilities
Deferred tax liabilities for land revaluation

139
11114
11

Provision for stocks payment
Provision for Management Board Incentive Plan Trust

169
148

209
200

Retirement benefit liability
Asset retirement obligations

106
452

100
526

Other376

366

Total non-current liabilities2,557

2,531

17,727

18,776

Capital stock
Capital surplus

1,080
1,220

1,080
1,652

Retained earnings
Treasury shares

28,765(1,053)32,251(961)

Total shareholders' equity

30,012

34,022

188

113

26(24)

26(169)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

8(1)

198

(30)

Share acquisition rights

111

104

Non-controlling interests

26

84

30,34934,18048,077

52,957

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

Net sales
Cost of sales

141,728
133,251

151,111
141,743

Gross profit

8,477

9,368

Selling, general and administrative expenses

2,532

2,635

Operating profit

5,944

6,733

16
100
6

20
120
1015–

37

42

86

95

113
–
9102
30
43

122

176

5,909

6,651

13
13––26–

55–
183
40–
126–
–

279

126

Profit before income taxes

5,656

6,525

Income taxes - current
Income taxes - deferred

1,946
76

2,247
(110)

Total income taxes

2,023

2,136

Profit

3,633

4,388

3,622
11

4,328
59

117
(0)
60
(7)

(74)
–
(144)
(10)

170

(229)

Comprehensive income

3,804

4,158

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

3,790
13

4,099
59

Non-operating income
Interest and dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Dividend income of insurance
Reversal of reserve for loss on dissolution of employees'
pension fund
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Impairment loss
Compensation expenses
Other
Total extraordinary losses

Profit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

5Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capitalstock
Balance at beginning of current period

Capitalsurplus1,080

Retainedearnings

1,291

25,914

Treasuryshares(1,015)

Total
shareholders'equity27,269Changes of items during period
Dividends of surplus

(770)

(770)

Profit attributable to owners of parent

3,622

3,622

Purchase of shares of consolidated
subsidiaries

(115)

(115)

Purchase of treasury shares
Disposal of treasury shares

44(56)(56)

1863

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

–

(70)

2,851

(38)

2,742

1,080

1,220

28,765(1,053)30,012

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve forland

71

26

Foreigncurrencytranslation
adjustment(82)

TotalRemeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

Total net
assets111

178

27,591income1531

Changes of items during period
Dividends of surplus(770)

Profit attributable to owners of parent

3,622

Purchase of shares of consolidated
subsidiaries(115)

Purchase of treasury shares(56)

Disposal of treasury shares

63

Net changes of items other thanshareholders' equity

117

(0)

57(7)

167–(152)

15

Total changes of items during period

117(0)

57(7)167–(152)

2,757

Balance at end of current period

188

26(24)

8198

111

26

30,3496Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capitalstock
Balance at beginning of current period

Capitalsurplus1,080

Retainedearnings

1,220

28,765

Total

Treasurysharesshareholders'equity(1,053)30,012

Changes of items during period
Dividends of surplus

(842)

(842)

Profit attributable to owners of parent

4,328

4,328

Purchase of shares of consolidated
subsidiaries–

Purchase of treasury shares
Disposal of treasury shares432(36)(36)128560Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

432

3,485

92

4,009

1,080

1,652

32,251(961)

34,022

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve forland

188

26

Foreigncurrencytranslation
adjustment(24)

TotalRemeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

Total net
assets111

26

30,349income8198

Changes of items during period
Dividends of surplus(842)

Profit attributable to owners of parent

4,328

Purchase of shares of consolidated
subsidiaries–

Purchase of treasury shares(36)

Disposal of treasury shares

560

Net changes of items other thanshareholders' equity

(74)

–

(144)

(10)

(229)

(7)

58

(178)

Total changes of items during period

(74)

–

(144)

(10)

(229)

(7)58

3,831

Balance at end of current period

113

26(169)

(1)

(30)

104

84

34,1807

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from operating activities
Profit before income taxes
Depreciation

5,656
1,667

6,525
1,772

Amortization of goodwill
Impairment loss

184
–

57
126

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

(2)
58

038

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

10(26)

35

39

81

51

(309)

–

(17)

(21)

(16)

(20)

Increase (decrease) in Provision for stocks payment
Increase (decrease) in provision for management board
incentive plan trust
Increase (decrease) in provision loss on dissolution of theemployee's pension fund
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using equity
methodInterest expenses

(0)

(20)

113

102

Loss on retirement of non-current assets
Loss on abandonment of non-current assets

–55

30–

Compensation expenses
Decrease (increase) in notes and accounts receivable - trade183(1,457)–(1,081)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes

212
(105)

595
119

Other, net

479

213

Subtotal

6,830

8,502

Interest and dividend income received

1620(113)
(183)

(102)
–

Income taxes paid

(1,872)(1,827)

Net cash provided by (used in) operating activities

4,678

6,592

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(931)
19(1,512)
6

Purchase of intangible assets
Purchase of investment securities

(443)
(0)

(480)
(502)

7–

Interest expenses paid
Compensation expenses paid

Cash flows from investing activities

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

8(70)

(78)

(1,418)(2,567)

(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from financing activities
Repayments of long-term loans payable
Purchase of treasury shares

–(56)

(5)
(36)

Proceeds from disposal of treasury shares
Cash dividends paid

63(770)553(842)

Repayments of lease obligations
Payments from changes in ownership interests in subsidiaries

(243)

(233)

(280)

–Net cash provided by (used in) financing activities(1,287)(564)

Effect of exchange rate change on cash and cash equivalents

36

(43)

that do not result in change in scope of consolidation

Net increase (decrease) in cash and cash equivalents

2,008

3,417

Cash and cash equivalents at beginning of period

8,249

10,258Cash and cash equivalents at end of period

10,25813,6759