TRANCOM Group
Medium-Term Management Plan
TRANCOM VISION 2025

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Looking Back from the Founding of the Company
Changes in the Business
FoundingPeriod

1st Period of Change

Transportation
Business
Warehouse
Business

Partially Optimal
Joint Delivery Service

2nd Period of Change
Overall Optimization for Each Customer

Logistics Center Construction, and Operation & Load Matching Services

Change in Sales Since the Company
was Founded(¥100 mln)
Logistics Management Business
Logistics Information Service BusinessIndustrial Support Business
OthersCopyright(c)/2021 TRANCOM CO.,LTD.All Rights Reserved.

2TRANCOM VISION 2020Summary
BasicPolicy

2015With human resources, partners and ICT as the axis of growth, the TRANCOM Group will
work together as a monolith to become a strong corporate group with high-quality functions.

2016

2017

2018

2019

Towards the Next Stage▪ Realization of “make and transport” through synergy with the LM business▪ Building a solid business foundation▪ (China) Starting automobile part logistics (Thailand) Starting 3PL business(Singapore) Future development in the ASEAN region

Business & Organization▪ Starting an automotive business in Japan▪ Commercialization of pallet collection logistics▪ Taking on the challenge of joint shipping for different
industries & existing customers▪ In-house relay location (Fukui) - Large vehicle drive in possible▪ Organizing company-wide sales and strengthening
activities▪ Using ICT as a business weapon - Establishing a DX promotion office▪ Collaborating with each company

Collaboration &Cooperation

Logistics
informationIS▪ Expanding specialty categories▪ Taking on the challenge of new logistics fields (promotional materials, automobile parts & onsite logistics)▪ Overwhelming on-site management ability and productivity improvement in each area

Overseas

LM

Advancement of Each Business / Creating a Unique Business Model▪ Expanding service areas & networks (new branch openings)▪ Taking on the challenge of new shipping matching with medium-lots & drayage, etc.
▪ Increasing dedicated trucks▪ Streamlining business operations (introducing BI tools & adding compass function)▪ Enhancing partner support services (truck leasing, recruitment site & Minna no Compass)2020

Mutual capital and business alliance with Hino Motors,one of the world's leading truck
manufacturers, and NLJ- Developing and providing next-generation logistics solutions that utilize advancedtechnology
Collaborating with GLP Japan & Monoful- Providing new solutions for transportation & delivery, and vehicle allocation
Capital and business alliance with Chinoh.Ai- Promoting a next-generation logistics center (automation)▪ Strengthening cooperation with the national & local governmentsImplementing a pallet collection demonstration project

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TRANCOM VISION 2020
Quantification
GoalResults

200 billion yen

163.4 billion yen

Operating profit
margin

5.0% - 6.0%

4.6%

ROE

13.0%-15.0%ROA

7.0%-8.0%

8.7%

Stable dividend of
20.0% to 30.0%

20.7%

FY2019
Sales

Payout ratio

FY2019>Copyright(c)/2021 TRANCOM CO.,LTD.All Rights Reserved.

13.6%

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Future External Environment
Shortage of truck drivers

Legal revisions in 2024 (working-style reform)

Improving the efficiency of transportation anddelivery is essential

Declining trend in the load factor over the long term(aging population & decline in the working population)

2019 -2023 -April 1st, 2023 Working-style reform: For small and medium-sized companies, an increase in additional pay for overtime work thatexceeds 60 hours in a month (25% → 50%)ExternalEnvironment2019 Working-style reform (upper limiton working hours)

April 1st, 2024 Working-style reform: Revision of exemptions for overtime limit standards (drivers)

Truck Load Factor (Japan)(Source) Ministry of Land, Infrastructure, Transport and Tourism“Annual Automobile Statistics Transport Report”

Around 2023 Convoy traveling - Level 3 manned
following vehicle

Around 2028 A 240,000 person shortage in truck drivers

Source: Boston Consulting
Group

Around 2025 - Convoy traveling
Convoy traveling - Level 4 unmanned following vehicle system commercialization potential

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5

Logistics Market Environment in Japan

JapanMarket▪ Internal issues related to logistics

About 24tln yen- Difficult to obtain accurate information in real time
- Work and personnel planning with experience and intuition- Individualistic type work

▪ External issues related to logistics

Medium-term global warming goals thatare required of the logistics industry
By 2030, a 27.3% reduction compared to FY2013- The structural decreasing birthrate and aging population- White logistics support- Frequent and small distribution lots
- Request for shorter lead times- Accelerating efforts to build a low-carbon and sustainable logistics
systemEstimated emissions
for each sector in 2030

Versus FY2013
results

Energy derived CO2

Industrial sector
Business and othersectors

Home sector

Transportationsector
Energy conversion
sector(Source) Ministry of Land,Infrastructure, Transport and Tourism

Business Axis Focused on “Transport”
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What TRANCOM Wants To Be
missionContinuing to take on the challenge of radical innovation andsolving social issues as a company responsible for the social
infrastructure of logistics

visionRealizing a platform (optimally in the form of "transportation")that is used by many companies (shippers and logistics companies)value
We want to meet expectations.
Honesty, creativity, taking on challenges, unity and gratitude.

strategy
Creating new value by combining ideas and technologies with
the network and know-how we have cultivated so far

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TRANCOM VISION 2025
The Approach for “Transportation”
Procurement &Production

International
ShippingCompany A
Company B

Warehouses

AutomationCompany A
Company B

Transportation andDelivery in Japan

RegularLoadmatching

Relay
Transportation
Stackedtransportation anddelivery
Combinedtransportation anddelivery

Charter...

Company A
Company B

Home Delivery

1Centermanagement

...
...

Industry Industry Industry
BACShippers

JointDelivery

Consolida
tedLarge
quantity2

Last miledelivery

Smallquantity...
1 Platform that is widely used by many companies>Building mechanisms and systems for transportation and delivery in Japan

2 Providing added value>Logistics center operation & international
logistics, etc.

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DX>Digitalization & connecting

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TRANCOM VISION 2025
Key Strategies
Concentrating all management resources on Transport
1. Improving and increasing transportation and delivery capacity & expanding a wide variety oftransportation and delivery modes

Focusing ontransport

2. Increasing the shipping volume handled in Japan
3. Business innovation for the load matching service
4. Strengthening innovation by collaborating with other companies
5. System development for the advancement of digitalization & building data connections
with other companies

Building thefoundation of theexisting business
Rebuilding thefoundation forgrowth

6. Building a strong business foundation for the logistics management business7. Strengthening growth in the ASEAN region
8. Further strengthening & diversifying human resources and the organization
9. Progressing to ESG & SDGs management
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9TRANCOM VISION 2025
Transport Key Strategies
Expanding awide variety oftransportationand delivery
modes

Increasing theshipping
volume handled
Promotingdigiatization▪ Accumulation of know-how with company vehicles & in the existing business▪ Strengthening cooperation with partner companies
With whatHow☑ Trucks ☑ Trailers☑ Connected trailers☑ Containers☑ Railways☑ Ships☑ Airplanes☑ Automatic driving trucks☑ Charter☑ Consolidated☑ Large quantity☑ Small quantity

Carrying out☑ Junction transportation〇 Transferring cargo〇 Switch operation〇 Changing drivers〇 Breaks, naps & accommodation☑ Stacked transportation and delivery〇 Heavy things and light things〇 Different types of industries☑ Combined transportation and delivery〇 Shipping and delivery〇 Delivery and delivery☑ Joint delivery (Same delivery address)☑ Last mile delivery (Short distance / to B)▪ Strengthening sales company wide
▪ Further expanding the load matching service☑ Expanding the shipping volume of existing customers ☑ Cultivating new customers☑ Expanding collection logistics ☑ Increasing spot cargo▪ Building a mechanism to connect things and information☑ Developing a main line & branch line vehicle dispatching system ☑ Improving the load matching system Compass☑ Connecting with partner company systems
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TRANCOM VISION 2025

Human Resources & Organization ESG/SDGs Key Strategies
HumanResources &Organization▪ Creating a vibrant organization that can draw out the desire for self-growth☑ Finding and promoting human resources ☑ Creating a place for individuals to grow☑ Training the next generation of leaders ☑ Recruiting specialized human resources▪ Efforts to achieve virtually zero CO2 emissions

ESG & SDGs
management▪ Strengthening the promotion of diversity☑ By creating “transportation”, understanding the amount of CO2
reduction through improved logistics efficiency☑ Introducing electric vehicles (EV & FCV)

☑ Promoting the advancement of women☑ Promoting the employment of people with disabilities☑ Promoting collaboration regardless of nationality▪ Building a recycling society☑ Building a system for reverse logistics & collection logistics▪ Strengthening substantive governance☑ Strengthening cooperation with outside directors to improve thefunction of the board of directors

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TRANCOM VISION 2025
Image of Growth
TRANCOM VISION 2025
2020

2021

Preparing for changes in the business2025

Towards building a “Transportation System”▪ Increasing the amount of transportation and delivery handled▪ Building a solid business foundation ▪ Putting together a wide variety of transportation and delivery▪ Efforts for changes in the business modes▪ Digitalization of information related to transportation and delivery

TRANCOM VISION 2030
Providing a“transportation” platform
Realizing a platform (optimally inthe form of "transportation") that isused by many companies

Number of times vehicles
dispatched daily

Number of times vehicles
dispatched daily

Number of times vehicles
dispatched daily

Main-line shipping market share rate

Main-line shipping market share rate

Main-line shipping market share rate

8,800

5.7%

15,00010.0%

23,00015.0%

Our own research about the main-line
shipping market in Japan
Number of

営業トラック台数
819,300台
commercial trucks: 819, 300
Number of transport
幹線輸送トラック台数
114,700台
114,700
trucks:Active Investment - 35 Bln Yen in 5 Years< DX, Locations, Vehicles, Alliances & Human Resources >Copyright(c)/2021 TRANCOM CO.,LTD.All Rights Reserved.

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TRANCOM VISION 2025
KPIs and Numerical Targets
FY2020

FY2025(FY2020)(FY2025)

8,800

15,000
10.0%

CO2 reduction / year

5.7%
132,964 t-CO2

Sales

152.2 billion yen

Number of “transportation”
arrangements / day
Main-line shipping share rate

243,249 t-CO2>

220.0 billion yen

Operating profit margin

5.4%

ROE

14.2%

12.0%~15.0%

ROA

9.2%

Payout ratio

19.6%

8.0%~10.0%
20.0%~25.0%

5.0%~6.0%* CO 2 reduction amount: Amount of CO2 emissions reduced by providing efficienttransportation and delivery services

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Copyright(c)/2021TRANCOM
TRANCOMCO.,LTD.All
CO.,LTD.AllRights
RightsReserved.
Reserved.
Copyright(c)/2021

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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