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, 2020
(Based on Japanese GAAP)
October 26, 2020
Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
President

URL

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

Inquiries:

Executive Officer / Finance & Accounting /Legal Affairs Group

Shinichi Kawamura

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

November 6, 2020
December 8, 2020

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

Yes
Yes

TEL

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

1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
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%Six months ended September 30, 2020
72,645
(9.4)
3,592
(2.2)
3,666
1.0
2,562
8.5
Six months ended September 30, 201980,217
9.4
3,672
23.1
3,630
21.9
2,362
18.0
Earnings per share

Diluted earnings per shareYen
261.89241.45Six months ended September 30, 2020
Six months ended September 30, 2019

Yen
261.22240.83(2) Consolidated financial position
Total assets

Net assets

Millions of yen
60,01559,545

As of September 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
40,53938,250Net assets per share
%
67.0
63.7

Yen
4,108.76
3,878.18

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
52.00
55.00

Yen–

Yen
52.00

Yen
104.00–55.00110.00Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full year

Millions of yen
149,000

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(8.8)
7,640
1.0
7,770
4.7
5,270
7.3
538.541

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(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:

No
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, 2020

10,324,150 shares As of March 31, 2020

10,324,150 shares

Number of treasury shares at the end of the period
As of September 30, 2020

538,417 shares As of March 31, 2020

539,687 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

9,784,999 shares Six months ended September 30, 20192

9,784,191 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

14,57525,18917,66322,328MerchandiseWork in process

39
1122

Supplies
Prepaid expenses

18615

15759

Other
Allowance for doubtful accounts

129(0)

267(0)40,56841,048

8,112(4,694)9,445(4,778)

Buildings and structures, net

3,418

4,666

Machinery, equipment and vehicles
Accumulated depreciation

6,193(4,687)

6,361(4,901)

1,506

1,460

2,991
2,396

2,871
2,435

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

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation(1,540)(1,601)

Leased assets, net

855

833

Construction in progress

1,671

221

Other
Accumulated depreciation

2,033
(999)

2,202
(1,160)

1,033

1,041

11,477

11,095

892
1,330

806
1,242

Software in progress
Customer Relationship

356
457

473
401

Other

162

160

3,198

3,084

Investment securities
Deferred tax assets

1,841
699

2,496
550

Deferred tax assets for land revaluation
Guarantee deposits–1,566

19
1,522

Other
Allowance for doubtful accounts

209
(16)

212
(15)

Total investments and other assets

4,300

4,786

18,976

18,96659,54560,015

Other, net
Total property, plant and equipment
Intangible assets
Goodwill
SoftwareTotal intangible assets
Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Accounts payable - trade

12,500

10,323

Lease obligations
Accounts payable - other447
714

467
795

Accrued expenses
Income taxes payable

1,342
1,324

1,366
1,116

Accrued consumption taxes
Provision for bonuses

998
643

1,424683

Provision for bonuses for directors (and other officers)
Other–
373

16365

18,344

16,558

Total current liabilities
Non-current liabilities
Lease obligations

1,275

1,198

Deferred tax liabilities
Deferred tax liabilities for land revaluation

96
11

104
–

Provision for share-based remuneration
Provision for share-based remuneration for directors (and257281

249

278

other officers)
Retirement benefit liability

106103Asset retirement obligations
Other576
377

576
375

Total non-current liabilities

2,950

2,916

21,294

19,475

Shareholders' equity
Share capital

1,080

1,080

Capital surplus
Retained earnings

1,740
36,175

1,745
38,296

Treasury shares(1,044)(1,042)

Total shareholders' equity

37,951

40,078Valuation difference on available-for-sale securities
Revaluation reserve for land

165
26

515
(44)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(186)
(11)

(332)
(10)

(5)

128

104
199

104
227

38,25040,53959,54560,015

Total liabilities
Net assets

Accumulated other comprehensive income

Total accumulated other comprehensive income
Share acquisition rights
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, 2019

Six months ended
September 30, 2020

Net sales

80,21772,645

Cost of sales

75,21367,696Gross profit

5,003

4,948

Selling, general and administrative expenses

1,331

1,356

Operating profit

3,672

3,592

1314

Share of profit of entities accounted for using equity method
Subsidy income

18229183

Other

1637

Total non-operating income

50

265

47
45

54
136

Non-operating income
Interest and dividend income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit

93

191

3,630

3,666

25–

Extraordinary losses
Compensation expenses

25–

Profit before income taxes

Total extraordinary losses

3,604

3,666

Income taxes - current

1,217

1,112

Income taxes - deferred

(12)

(48)

Total income taxes

1,2041,063

Profit

2,399

2,603

Profit attributable toProfit attributable to owners of parent

2,362

2,562

3740

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

135(49)350(158)

Revaluation reserve for landRemeasurements of defined benefit plans, net of tax–(5)(70)
1Total other comprehensive income

80

122

Comprehensive income

2,480

2,725

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,441

2,696

3828

Profit attributable to non-controlling interests
Other comprehensive incomeComprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2019

September 30, 2020

3,604

3,666

1,024
24

1,160
64

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

051(0)
40

Increase (decrease) in provision for bonuses for directors(and other officers)

18

16

Increase (decrease) in provision for share-based
remuneration

27

23

Increase (decrease) in provision for share-based
remuneration for directors (and other officers)

2529

Increase (decrease) in retirement benefit liability
Interest and dividend income

(7)
(13)

(0)
(14)

Share of loss (profit) of entities accounted for using equity
method(18)(29)

Subsidy income
Interest expenses–47(183)
54

Loss on retirement of non-current assets
Compensation expenses

1225

8–

Decrease (increase) in trade receivables
Increase (decrease) in trade payables

(236)
386

2,818(2,152)

Increase (decrease) in accrued consumption taxes
Other, net(101)(514)

426
(249)

Subtotal

4,357

5,679

Interest and dividends received
Proceeds from subsidy income

13–

14183

Interest paid
Compensation expenses paid

(47)
(24)

(54)
–

Income taxes paid

(1,346)(1,206)

Net cash provided by (used in) operating activities

2,952

4,615

(1,689)3(429)
124

Purchase of intangible assets
Purchase of investment securities

(213)
(0)

(308)
(121)

Other, net

(172)

21

(2,071)

(714)

––

(0)
7

Dividends paid
Repayments of lease obligations

(472)
(125)

(513)
(222)

Net cash provided by (used in) financing activities

(598)

(728)

Depreciation
Amortization of goodwill

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from disposal of treasury shares

Effect of exchange rate change on cash and cash equivalents

(15)

(84)

Net increase (decrease) in cash and cash equivalents

266

3,088

Cash and cash equivalents at beginning of period

13,675

14,575

Cash and cash equivalents at end of period

13,942

17,6636