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, 2018
(Based on Japanese GAAP)
October 29, 2018
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:

November 9, 2018
December 4, 2018

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, 2018 (from April 1, 2018 to September 30, 2018)(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, 2018
73,345
5.7
2,983
18.4
2,978
19.4
2,001
33.4
Six months ended September 30, 201769,411
7.4
2,520
2.4
2,494
5.1
1,500 (28.8)
Earnings per share

Diluted earnings per share

Yen
205.89154.49Six months ended September 30, 2018
Six months ended September 30, 2017

Yen
205.36154.06(2) Consolidated financial position
Total assets

Net assets

Millions of yen
49,40248,077

As of September 30, 2018
As of March 31, 2018

Equity ratio

Millions of yen
32,43730,349Net assets per share
%
65.3
62.8

Yen
3,298.98
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 six months ended September 30, 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:

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, 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 September 30, 2018

541,025 shares As of March 31, 2018612,982 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

9,721,417 shares Six months ended September 30, 2017

2

9,710,284 shares

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

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

10,25822,235

11,81521,555MerchandiseWork in process

13
17

14
1Supplies
Prepaid expenses

18544

21568

Other
Allowance for doubtful accounts

275
(0)

172
(0)

33,36334,148

7,676(4,193)

7,772(4,320)

Buildings and structures, net

3,483

3,452

Machinery, equipment and vehicles
Accumulated depreciation

4,654(3,517)

4,924(3,716)

1,136

1,207

2,701
2,280

2,701
2,301

Accumulated depreciation(1,241)(1,333)

Leased assets, net

1,039

968Total 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

12125

1,014(698)

1,066(746)

316

320

8,688

8,776

482
1,658

436
1,521

Software in progress
Customer Relationship

17556

76504

Other

169

168

2,885

2,707

Investment securities
Deferred tax assets

1,301
522

1,864
558

Guarantee deposits
Other

1,184
153

1,205
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

33,1393,769

14,713

15,25348,07749,402

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Accounts payable - trade

10,326

9,629

Lease obligations
Accounts payable - other232
528

236
423

Accrued expenses
Income taxes payable

1,587
932

1,701
979

Accrued consumption taxes
Provision for bonuses

469
560

429
597

Provision for directors' bonuses
Other

26
506

14
467

15,17014,479Total current liabilities
Non-current liabilities
Lease obligations

1,153

1,074

Deferred tax liabilities
Deferred tax liabilities for land revaluation

139
11

126
11

Provision for stocks payment
Provision for Management Board Incentive Plan Trust

169
148

188
165

Net defined benefit liability
Asset retirement obligations

106
452

95
459

Other

376

364

Total non-current liabilities

2,557

2,485

17,727

16,964

Capital stock
Capital surplus

1,080
1,220

1,0801,623

Retained earnings
Treasury shares

28,765(1,053)30,357(934)

Total shareholders' equity

30,01232,126188

226

26(24)

26(110)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

85198

147

Share acquisition rights

111

104

Non-controlling interests

2658

30,34932,43748,07749,402

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)Six months ended
September 30, 2017

Six months ended
September 30, 2018

Net sales

69,411

73,345

Cost of sales

65,617

69,092Gross profit

3,794

4,252

Selling, general and administrative expenses

1,274

1,269

Operating profit

2,520

2,983

1011

Share of profit of entities accounted for using equity method
Foreign exchange gains–5716

Other2631

Total non-operating income

4166

Interest expenses
Share of loss of entities accounted for using equity method

57
452–

Loss on retirement of non-current assets
Other–
5180

Non-operating income
Interest and dividend income

Non-operating expenses

Total non-operating expenses

6671

2,494

2,978

Gain on sales of non-current assets

6–

Total extraordinary income

6–

Loss on abandonment of non-current assets
Compensation expenses

4170

–
–

Other

1–

Ordinary profit
Extraordinary income

Extraordinary losses

113–

Profit before income taxes

Total extraordinary losses

2,387

2,978

Income taxes - current

1,000

1,001

Income taxes - deferred(107)(59)

Total income taxes

893

941

Profit

1,494

2,036

Profit attributable toProfit attributable to owners of parent

1,500

2,001(5)35Valuation difference on available-for-sale securities
Foreign currency translation adjustment

90(35)

38(85)

Remeasurements of defined benefit plans, net of tax(1)(3)

Profit (loss) attributable to non-controlling interests
Other comprehensive income

Total other comprehensive income
Comprehensive income

52(50)

1,547

1,986

1,555(8)1,95035Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2017

Six months ended
September 30, 2018

Cash flows from operating activities
Profit before income taxes
Depreciation

2,387
783

2,978833

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

910290

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

50
137(12)

Increase (decrease) in Provision for stocks payment
Increase (decrease) in provision for management board

181856

16

incentive plan trust
Increase (decrease) in net defined benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using equity

(8)

(15)

(10)

(11)

methodInterest expenses

4(7)

57

52

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

–41

18–

Compensation expenses
Decrease (increase) in notes and accounts receivable -70–

(729)

663

trade
Increase (decrease) in notes and accounts payable - trade

(598)

(679)

Increase (decrease) in accrued consumption taxes
Other, net

(169)
276

(39)
(113)

Subtotal

2,321

3,770

Interest and dividend income received
Interest expenses paid

10(57)

11(52)

Compensation expenses paid
Income taxes paid

(70)
(955)

–(882)Net cash provided by (used in) operating activities

1,248

2,846

(378)

(524)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

12(230)5(180)

Purchase of investment securities
Other, net

(0)
(19)

(500)
(43)

Net cash provided by (used in) investing activities(616)(1,244)

Cash flows from financing activities
Repayments of long-term loans payable–(5)Purchase of treasury shares
Proceeds from disposal of treasury shares

(56)
62(0)
515

Cash dividends paid
Repayments of lease obligations

(380)
(127)

(410)
(117)

Net cash provided by (used in) financing activities

(502)

(18)

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

Effect of exchange rate change on cash and cash equivalents

10(26)Net increase (decrease) in cash and cash equivalents

141

1,557

Cash and cash equivalents at beginning of period

8,249

10,258Cash and cash equivalents at end of period

8,390

11,815

6