－ TRANCOM GROUP －Financial Results

for the Fiscal Year Ending March 31, 2020

TRANCOM CO., LTD.
April 30, 2020
(Securities Code：9058)

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for the FY2019
Point of presentation

Financial results for the FY2019

・Logistics management business : Promoted efficiency and improvement in operations
・Logistics information service business : Increased the number of arranging cargos and trucks,
but transportation prices and competitions have become severe since the second half of this year
・Industrial support business : Sales and profits decrease due to decline in customer productions
・Increase in sales and profits in consolidated financial results for FY2019

Forecasts for the FY2020

・Due to the spread of the COVID-19, it is difficult to properly and reasonably predict the future
outlook. We will make an announcement promptly after the consolidated projections anddividend forecasts become being estimated・Dividends increased for the past 19 consecutive years, and we’ll consider next dividend
projections following our continuous dividend increasing policy in the case of possibility

Take proper actions under these circumstances, andreform a corporate structure concentrating on our unique“Transportation” system

・It’s hard to deliberate medium-term business plans under this pandemic circumstance as well.
However, we will promptly announce them after we could foresee what we should focus on.
・After returning to normal, it’ll be possible to be changed in business structures and social issues.
We’ll expand our businesses by building our unique “Transportation” system based on ourstrength, and realize fundamental reforms in logistics industry.
2

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

CONTENTS
1 Topics for the FY2019
2 Financial Results for the FY2019

Financial Status & Shareholder
3
Return Policy
4 Effects on business by COVID-19

Ｐ.4
Ｐ.13
Ｐ.20
Ｐ.22

3
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
TRANCOM VISION / Future business direction
Long-term
visionWe build advanced “Transportation” mechanisms＝ We’re aiming to become the ones which has the largest
transportation platform in Japan

Mid-term
visionEnhance “methods of transport”, widen ”transport category”,
and build services that have the optimized “Transportation”
systemCreating “Methods of Transport”

make the most of limited transport capacity
Main policyof Mid-term

Creating various “Transport Category”
across industries
4
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019

Building enhanced “Transportation” system

detail

１ Built a transportation system as in Re_solnet service

P６

２ Promoted efficiency of “Transportation” by alliance

P7～8

３ Expanded the production transportation business of automotive parts
４ Development of our domestic logistics sites

P9

５ Organized the “transport division” and business planning group

P10

New business /Strengthened business foundations
P11

１

New actions to other logistics fields

２

About automated operation systems in warehouse (case picking)３

Expanded into Singapore

P125

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
Building enhanced “Transportation” system
１

Built a transportation system as in Re_solnet service
Re_solnet service （ Return･Reduce･Rebirth＋Solution＋Network）

Trancom’s unique reverse logistics system based on logistics information services business■ Started vacant pallets collection logistics
efficiently collecting pallets stacked at distribution center to realize a new transportation system● Increasing the number of logistics information by utilizing the number of collecting pallets● Demonstration of efficiencies with the Ministry of Land, Infrastructure and Transport（from June 2020）
Realizing pallet collection business in food transportation industry, by driving double-connected trucks

Scheme of “vacant pallets collection” service

6
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
Building enhanced “Transportation” system
２

Promoted efficiency of “Transportation” by alliance■ Business alliance with GLP Japan Inc. and Monoful Inc.
Realizing physical internet network in Japan’s logistics※ logistics network that could share with several companies

the GLP as cross-dock centers‣arranging suitable trucks to cargo owners in the GLP

connected with “Haisha plus” andour logistics information service

GLP site

Midium lot

Realizing seamless arranges by using“Haisha plus” of Monoful

TRANCOM

Cross Docking center
Midium lot cargo

Trunk line

in GLP site

Associate company

７P/L

TRANCOM
Haisya plus
Branch line(Charter)

Branch line(Charter)

Logistics
Information Service

TRANCOM
ParnerShipper

Expand scheme into nationalwide

7
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
Building enhanced “Transportation” system
２

Promoted efficiency of “Transportation” by alliance■ Enter capital and business alliance with truck maker Hino group
Companies to bring together know-how as a first toward solving issues
Established an efficient long-haul transportation scheme with double-connected trucks
Optimizing logistics efficiency
carry lots of cargo efficiency
carry more and more cargo by a truck
Pursuing safety, security andsustainable logistics‣safety ‣convenience‣improve transportation quality‣environmental load reducing‣promote work style reform◀ specially developed 25mclass double-coupled trucks by
Hino Motors Co., Ltd.
8
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
Building enhanced “Transportation” system
４

Development of our domestic logistics sites■ Our plan: Expanding sites that have various transportation options, functions ofimproving load-efficiencies and shortening working hours of truck drivers

Our new transportation sites that have functions to relay and reload of transportation
Fukuroi branch（expand in seconf half 2020）

Aichi branch
FukushimabranchFukuroi branch（completed second half in 2020）

rest places andnap rooms for drivers
Resting place

HiroshimabranchFukuroibranchAichi branch

LandryExpanding parking
spaces to relay andreload cargos

Shower room

Nap room9
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019
Building enhanced “Transportation” system
５

Organized the “transport division” and business planning group■ To accelerate the business development by establishing a new organization
Organization chart for TRANCOM group※Only business division

TRANCOM group
Business strategy
groupTransport
division

Purpose of Reorganization［Transport division］（◆ Established the transportation
division to create new “transportation”
business by merging logistics
information service group, automotive
logistics service group and supply chain
logistics service group. We’ll realize tosophisticate business and build newtransportation system

MECHANOS Co., Ltd.

TRANCOM ITS Co., Ltd.

TRANCOM DS Co., Ltd.

Overseas business group）
China/Thailand/Singapore

Industrial support group

Logistics management group

Supply chain logistics group

Automotive logistics group

Logistics information group［Business strategy group］◆ Sites planning◆ IT solution planning◆ Building new “Transportation”
system such as Re_solnet service

10
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019

New business /Strengthened business foundations
１

New actions to other logistics fields■ Sales promotion goods logistics / Start operation with Industrial support business
Sales promotion logistics with 3 makers
・Realizing efficiencies by combining operationsof 3 makers
・Joint award “Ministry ‘s Prize, the ministry of
Economy, Trade and Industry” at Green Logistics
Partnership Commendation

standardization of cardboard
size for packaging

Reduced packing
volume and numberof packaging

Synergy creating between ”manufacturing” ofIndustrial support div. and “transport”
New operations in warehouses of a cosmetics maker▼ operation at material centers, dispatching employees to parts ofproduction plants
Material
manufacturer

Material
centerProduction
plantDistribution
centeruser

Distribution
centeruser

Improved logistics
efficiency and realize
environmental load
reductions

joint delivery of sales
promotion goods for 3 makers

condition of
distribution center▼ in-house logistics in production plant
Material
manufacturer

Production plant

11
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Topics for the FY2019

New business /Strengthened business foundations
３

Expanded into Singapore■ Expanded into Singapore, to develop our business in ASEAN countries

Stock acquisition of Sergent Services Pte. Ltd. which provides building cleaning
services（in September 2019）
About Sergent Services Pte Ltd● Clients：Changi international airport, Subway stations, Shopping malls etc.
● Industry influence/REP of three company council（Millions of yen）
● Acquired cleaning business license L6
Sales
Ordinary profit margin
1,800
・acquisition of BCA license L6(best in class)
1,592
1,512
・acquired company is 22 out of 412 companies
1,200

1,294
7.7%

8.3%

9.1%

600

12.0%
10.0%
8.0%
6.0%
4.0%
2.0%

0

2017/122018/122019/120.0%※81.07 YEN/SGD（convert rate as of end of Dec, 2019）◆ Consolidation
BS：Year ending March 2019 PL：Year ending March 2020
12
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019

YoY
Compared to
the forecast

Profits of Logistics Information Service Business and Industrial Support
Business decreased in the second half, however total sales and profits
increased as a result of efficiency improvement of Logistics Management
Business on full year

Sales: achieved / Profits: unachieved（Units : Millions of Yen）
ＦＹ２０１８First Half

Net Sales

Second Half

73,345 77,766

ＦＹ２０１９Full YearFirst Half

151,111 80,217

YoY(%)

Second Half

YoY(%)

Forecast(October 2019)

Full Year

YoY(%)

Full Year

Forecast

Forecast

Change %9.4%

83,245

7.0%

163,463

8.2%

162,600

0.5%

Operating Profit

2,983

3,750

6,733

3,672

23.1%

3,893

3.8%

7,566

12.4%

7,700

-1.7%

（% of Sales）(4.1%)(4.8%)(4.5%)(4.6%)(+0.5P)(4.7%)(-0.1P)(4.6%)(+0.1P)(4.7%)(-0.1P)

2,978

3,673

6,651

3,630

21.9%

3,787

3.1%

7,417

11.5%

7,610

-2.5%

(4.1%)(4.7%)(4.4%)(4.5%)(+0.4P)(4.5%)(-0.2P)(4.5%)(+0.1P)(4.7%)(-0.2P)

2,001

2,327

4,328

2,362

18.0%

2,546

9.4%

4,909

13.4%

5,000

-1.8%

(2.7%)(3.0%)(2.9%)(2.9%)(+0.2P)(3.1%)(+0.1P)(3.0%)(+0.1P)(3.1%)(-0.1P)

Reccuring
Profit（% of Sales）

Net profit（% of Sales）

13
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019(Breakdown by Business Segment)（Units : Millions of Yen）
ＦＹ２０１８First Year

Logistics
Management
Business
Logistics
Information
ServiceBusiness
Industrial

Second Year

Full Year

YoY(%)

YoY(%)

Full Year

Forecast

Forecast

Change %26,9898.4%

28,035

6.9%

55,024

7.6%

54,000

1.9%

1,334

1,699

3,033

1,673

25.5%

1,968

15.8%

3,642

20.1%

3,500

4.1%

(5.4%)(6.5%)(5.9%)(6.2%)(+0.8P)(7.0%)(+0.5P)(6.6%)(+0.7P)(6.5%)(+0.1P)

40,493

43,25783,75045,385

12.1%

47,033

8.7%

92,418

10.4%

92,600

-0.2%

1,530

1,781

3,312

1,606

5.0%

1,665

-6.5%

3,272

-1.2%

3,500

-6.5%

（% of Sales）(3.8%)(4.1%)(4.0%)(3.5%)(-0.3P)(3.5%)(-0.6P)(3.5%)(-0.5P)(3.8%)(-0.3P)

Net Sales

3,767

3,920

7,687

3,735

-0.9%

3,567

-9.0%

7,302

-5.0%

7,600

-3.9%

-3

145

141

178

-

52

-63.9%

231

63.2%

330

-30.0%（% of Sales）(-0.1%)(3.7%)(1.8%)(4.8%)(+4.9P)(1.5%)(-2.2P)(3.2%)(+1.4P)(4.3%)(-1.1P)

Net Sales

4,781

5,124

9,906

4,859

1.6%

5,462

6.6%

10,321

4.2%

9,900

4.3%

179

209

388

262

46.5%

299

42.8%

561

44.5%

430

30.5%

（% of Sales）(3.7%)(4.1%)(3.9%)(5.4%)(+1.7P)(5.5%)(+1.4P)(5.4%)(+1.5P)(4.3%)(+1.1P)

Net Sales

-590

-759

-1,350

-751

-

-853

-

-1,605--1,500

-

-57

-84

-141

-48

-

-91

-

-140

-

-60

-

-

-

-

-

-

-

-

-

-

-

-

73,34577,766

151,11180,217

9.4%

83,245

7.0%

163,463

8.2%

162,600

0.5%

2,983

3,750

6,733

3,672

23.1%

3,893

3.8%

7,566

12.4%

7,700

-1.7%

(4.1%)(4.8%)(4.5%)(4.6%)(+0.5P)(4.7%)(-0.1P)(4.6%)(+0.1P)(4.7%)(-0.1P)

Operating
Profit（% of Sales）

Net Sales
Operating
ProfitProfitOperating
ProfitOperating
Profit（% of Sales）

Net Sales

Total

YoY(%)

51,118Business

elimination

First Year

26,224

OperatingInter-company

Full Year

Second Year

Forecast(October 2020)

24,893

Net Sales

SupportOthers

ＦＹ２０１９Operating
Profit（% of Sales）

14
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019(Breakdown by Business Segment)
Logistics Management Business
Sales・Operating profit・% of Sales(Millions of yen)
Net Sales

Sales

60,00050,00047,16355,024

51,1180Operatingprofit

2,866

3,033

6.6%
6.1%
2017

6000
5000

20,00010,000◆ % of Sales

3,642

40,00030,000Operatng profit

3000
2000
1000

5.9%
2018

4000

2019

〈Main topics〉
・Improved costs and operations
・Full-swing of previously started business・Increased volume of cargos
・Adjusted operation fees0Started new businesses /Operation status■ started businesses of sales promotion goods, automotive production parts,
daily use items and drugs & cosmetics（5 sites）■ started operation of a integration center of daily use items (Shiraoka, Kanto) (started in April 2020)■ built warehouse for a pharmaceutical client in Toyama Pref. (started in April 2020)

Realize overwhelming logistics center operation■ invested into automated warehouse system（start implementing in 2020）■ reorganized and divided operation dept. into 3 enterprises by areas(East, Central and West Japan),to provide higher qualified services
15

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019(Breakdown by Business Segment)
Logistics Information Service Business
Cargo information（thousand）

2017

900
800
700
600

2018
747

630 636 654

706（thousand）

2019

1,000

806
742

717

900
671
656

800

569

549

Truck dispatched

Empty truck information

500

2017

2018

800776 772
694

700

745

615

600

（thousand） 2017

2019
858

798
642647

676
638

100
0

２Q

３Q

200

100

100

50

４Q

323

335

335

318

355

0

１Q

２Q

３Q

１Q

４Q

Further strengthening Logistics
Information service■ Opened new sites to expand our network to 39 sites

２Q

３Q

４Q

Sales・Operating Profit・% of Sales
Operating(Millions of yen)

Operating Profit ◆ % of Sales profit

Net Sales

Sales
100,000〈New sites〉 Hokkaido, North Osaka（March 2019）
South Nagoya, North Saitama（September 2019）Fukuoka Second（March 2020）

80,000● Number of sales staff
584→ 626 +42
● Number of inclusiveAsbusiness
partnersAs of Mar, 2020of Mar, 2019
1,475 vehicles/day → 1,716vehicles/day +241vehicles/day

60,000

As of Mar, 2019

329

387
351

300

0

１Q

327

364

150

300

200

350

344 352

200

400

300

400

2019

250

500

400

2018

450

As of Mar, 2020

3,108

3,312

92,41920,000
0

6000
5000

3,276

4000
3000

40,000■ Strengthen sales force to manufacturers to acquire cargo information
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

78,036

83,750

4.0%

2000

4.0%
3.5%

2017

2018

2019

1000
0

16

Financial Results for FY2019(Breakdown by Business Segment)
Logistics Information Service Business
Actions of enhancing transportation functions■ Strengthened teams of cargo consolidations to arrange more in mid-lot cargos■ Started drayage transportation business at Kawasaki port（will start from 1st quarter 2020）■ Started considering CTI methods in matching operations■ Decided to open a back-up center at Nagano pref.（will start the second half）
Backup center（under consideration）

Analyzing data

Integrated data processing center

making the best usage of big data
accumulates on the enterprise system

Customer support of “Tranavi”
BCP

emergency responseof disasterreorganize functions of receipt works of each sites◆ reduction of working hours of each business partner◆ cost reduction by adjust worklines and paperless

Education centerfor sales staff

Business planning function for new technology
implementation
co-working along with a local university and other companies

17
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019(Breakdown by Business Segment)
Logistics Information Service BusinessTransition Number of Information（April 2009 – March 2020）（Unit：number）

350,000

Truck dispatched(Partner)

Truck dispatched

Cargo information

Truck empty imformation

300,000

250,000

200,000

150,000

100,000

50,0000

18
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Financial Results for FY2019(Breakdown by Business Segment)
Industrial Support Business ・ Others
OthersIndustrial Support Business
Sales・Operating profit・% of Sales(Millions of yen)
Net Sales
Sales

Operatng profit◆ % of Sales

10,000

8,221

7,687

8,000

7,303

6,000

278

4,000
2,000
0

83
1.0%
2017

142

3.2%

1.8%
2018

2019

Sales・Operating profit・% of Sales

Operatingprofit(Millions of yen)
Net Sales
Sales

600

12,000500

10,000

400

8,000

300

6,000

200

4,000

100

2,000

0

0

Operatng profit ◆ % of Sales

10,322

9,906

9,872

557
388

Operatingprofit
800

600

400

5.4%
89

3.9%

200

0.9%
2017

2018

2019

0

〈Main topics〉〈Main topics〉
・ Decline in customer’s production

・ Cost reduction in ICT dept.

・ Improvement of gross profit margin/・ Exchange fluctuation

Retreated from underperforming business・ Cost control and reduction

China （16.16YEN/RMB→15.67YEN/RMB）
Thailand（ 3.41YEN/THB → 3.63YEN/THB）
19

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

FY2019
Financial Status & Shareholder Return Policy
Consolidated Statements of Cash Flows

Consolidated Balance Sheets（Unit: Millions yen）

Cash flows
from operating
activities
6,592

Cash flows
from investing
activities

7,287（Unit: Millions yen）

Cash flows
from financing
activities

Current■ FY2018（+2,099）■ FY2019

18,344Current Assets
40,568（＋2,899）【Main change】
Acquisition of Fixed
Assets△3,891
Acquisition of new
consolidated subsidiary's
shares△896

Fixed Liabilities
2,950（＋418）Net Asets
38,250（＋4,069）【Main change】
Income before
income taxes
7,391
Depreciation
2,242
Income taxes△2,455【Main change】
Accounts receivable＋1,332【Main change】
Accounts＋1,607△ 564△ 2,567△ 5,141△ 1,243【Main change】
Dividend paid
△984

Fixed Assets
18,976（＋3,688）【Main change】
Retained earnings＋3,924【Main change】

・developed new W/H・Vehicles・Acquisition of new
consolidated subsidiary's
sharesCopyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

20

FY2019
Financial Status & Shareholder Return Policy
Cash Flows from Operating Activities
and Capital Investment・Dividends

Trend of Actual Dividends（Units:Millions of Yen）

8,000

■Cash flows from operating activities■Land・Buildings ■Vehicles ■Machinery, Equipment■Software■Total Dividends

（Yen）
110

7,000
100

（％）

Dividend per share
Dividend payout ratio

19.7

20.4

22.0

20.7

25

20.7
20

6,000
90

5,000

15

4,000

80

104

3,000

92

70
2,000
60

1,000
0

FY2018FY20191 FY2015
2 3 4 FY2016
5 6 7 FY2017
8 9 1011 12 13
14 15

50

74

2015

78

2016

10

82
5

2017

2018

0

2019（FY）

21
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Effects on business by COVID-19
Measures for preventions of the coronavirus expansions■ Measures for disinfecting
・Hand washing/Gargling/Sanitize by alcohol/Wearing mask
・Installing alcohol disinfections at every sites of Trancom group・Restraint and self-restraint in business trips, meetings, customer visits and visitor
by endorsing to use WEB meetings■ Changing – work at office policy ・Dispersed working places
・Telework promotion, staggered commuting
・Promotion of taking paid holidays

Measures if there would be infected employees in centers■ Telework・Set the environment that enable for employees to log-in to our system from home
* already prepared these assets for 100 employees■ Work at satellite office
・Change workplaces those are nearest from each home22
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Effects on business by COVID-19
Logistics Information Service Business■ Cargo transportations will be slowdown, this will get business environment severe■ Not resolved shortage of truck drivers,
Transportation price will not decrease significantly

Logistics Management Business■ We mainly handle consumer goods so that the
total of cargo volume will increase. Especiallyin volume of daily necessities (e.g. sanitary goods
and foods) and Co-op significantly.

Number of trading partners by industry（Sales of FY2019）■ Effect of retail stores temporally closed will
be limited and insignificant

Industrial Support Business■ Reductions will be significant due to plants closed of automotive companies
23
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Effects on business by COVID-19
Reference data（Logistics Information Service Business）
No. of cargo information per day（2018・2019・2020）
Number

2018

2019

2020

2018

2019

2020

14,00012,00010,000
8,000
6,000
4,000
2,000
0

Number
18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

24
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Effects on business by COVID-19
Reference data（Logistics Information Service Business）
Trend of fare unit after 2013
fare unit

65,00060,00055,000Grow with each passing year from 2013
50,00045,000

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

25Effects on business by COVID-19
Reference data（Logistics Information Service Business）
No. of cargo/empty truck information per months（Apr 2008～Mar 2010）before and after Lehman shock
300,000(Number)

Cargo information

Empty truck information

250,000
200,000
150,000
100,000
50,0000（Apr 2019～Apr 2020）before and after the spread of infection of COVID-19(Number)

400,000

Cargo information

Empty truck information

350,000
300,000
250,000
200,000
150,000
100,000
50,000026
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Effects on business by COVID-19
Reference data（Logistics Management Business）
Home delivery trend（Mar 2019～Apr 2020）（supply for CO-OP business of Trancom DS Co., Ltd.）（Million yen）
1,600
2019

2020

1,400

1,200

800

Mar 3w
4w
Apr 1w
2w
3w
4w
May 1w
2w
3w
4w
5w
Jun 1w
2w
3w
4w
Jul 1w
2w
3w
4w
5w
Aug 1w
2w
3w
4w
Sep 1w
2w
3w
4w
Oct 1w
2w
3w
4w
5w
Nov 1w
2w
3w
4w
Dec 1w
2w
3w
4w
5w
Jan 2w
3w
4w
5w
Feb 1w
2w
3w
4w
Mar 1w
2w
3w
4w
Apr 1w
2w
3w

1,000

27
Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.

Any inquiries concerning this presentation and investor relations
matters to be directed to the following.
ＭＡＩＬ： ir_info@trancom.co.jp

Corporate Planning GroupＴＥＬ：052-939-2023 ＦＡＸ：052-939-2015※ This presentation contains forward-looking statements such as forecasts, plans, and targets related to thecompany at the time of creation. We do not guarantee or commit to the accuracy of this information, and it may
be altered without notice caused by various factors or any potential risks in the future.

Copyright(c)/2020 TRANCOM CO.,LTD.All Rights Reserved.