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, 2019
(Based on Japanese GAAP)

October 24, 2019

Company name:
TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

9058
President

URL

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

Board Director and Managing Executive Officer Corporate Planning /Administration / Business Development Group

Yutaka Tsunekawa
Keisuke Nakazawa

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

November 8, 2019
December 3, 2019

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, 2019 (from April 1, 2019 to September 30, 2019)(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, 201980,217
9.4
3,672
23.1
3,630
21.9
2,362
18.0
Six months ended September 30, 2018
73,345
5.7
2,983
18.4
2,978
19.4
2,001
33.4
Earnings per share

Diluted earnings per shareYen
241.45205.89Six months ended September 30, 2019
Six months ended September 30, 2018

Yen
240.83205.36(2) Consolidated financial position
Total assets

Net assets

Millions of yen
54,843
52,957

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
36,19434,180Net assets per share
%
65.6
64.2

Yen
3,675.80
3,474.40

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
44.00
52.00

Yen–

Yen
48.00

Yen
92.00

–52.00104.00Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Full year

Millions of yen
162,600

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
7.6
7,700
14.4
7,610
14.4
5,000
15.5
511.02

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(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:

Yes
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, 2019

10,324,150 shares As of March 31, 2019

10,324,150 shares

Number of treasury shares at the end of the period
As of September 30, 2019539,825 shares As of March 31, 2019

540,725 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2019

9,784,191 shares Six months ended September 30, 2018

29,721,417 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade

13,67523,275

13,942
23,503MerchandiseWork in process

19114
1Supplies
Prepaid expenses

23565

23645

Other
Allowance for doubtful accounts

108
(0)

87(0)

37,66938,218

7,867(4,446)

8,014(4,574)

Buildings and structures, net

3,420

3,440

Machinery, equipment and vehicles
Accumulated depreciation

5,227(3,973)

5,833(4,187)

1,254

1,646

2,701
2,284

2,991
2,334(1,371)(1,460)912

874

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

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

232

434

1,147(731)

1,477
(812)

416

665

8,937

10,052

367
1,348

332
1,329

Software in progress
Customer Relationship

251
457

239
413

Other

165

164

2,590

2,479

Investment securities
Deferred tax assets

1,632
654

1,847
602

Guarantee deposits
Other

1,332
162

1,443
222(21)

(22)

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

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

3,759

4,092

15,287

16,62452,957

54,843

(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Accounts payable - trade

10,893

11,270

Lease obligations
Accounts payable - other

246
407

288
289

Accrued expenses
Income taxes payable

1,582
1,390

1,373
1,164

Accrued consumption taxes
Provision for bonuses

588
598

486
650

Provision for bonuses for directors (and other officers)
Other–
537

18363

16,245

15,907

Total current liabilities
Non-current liabilities
Lease obligations

1,002

1,109

Deferred tax liabilities
Deferred tax liabilities for land revaluation

114
11103
11

Provision for share-based remuneration
Provision for share-based remuneration for directors (and209

232

200

225

other officers)
Retirement benefit liability

100

101

Asset retirement obligations
Other

526
366

564
393

Total non-current liabilities

2,5312,741

18,776

18,649

Shareholders' equity
Share capital

1,080

1,080

Capital surplus
Retained earnings

1,652
32,251

1,655
34,141

Treasury shares

(961)

(960)

34,02235,916

Valuation difference on available-for-sale securities
Revaluation reserve for land

113
26

249
26

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(169)
(1)

(219)
(7)

Total accumulated other comprehensive income

(30)

48

104
84

104
124

34,18036,19452,957

54,843

Total liabilities
Net assets

Total shareholders' equity
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, 2018

Six months ended
September 30, 2019

Net sales

73,34580,217

Cost of sales

69,09275,213Gross profit

4,252

5,003

Selling, general and administrative expenses

1,269

1,331

Operating profit

2,983

3,672

1113

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

71618–

Other

31

19

Total non-operating income

66

5052
1847
12

Other

033

Total non-operating expenses

71

93

Non-operating income
Interest and dividend income

Non-operating expenses
Interest expenses
Loss on retirement of non-current assets

Ordinary profit

2,978

3,630

Extraordinary losses
Compensation expenses–

25

Total extraordinary losses–

25

Profit before income taxes

2,978

3,604

Income taxes - current
Income taxes - deferred

1,001
(59)

1,217(12)

941

1,204

2,036

2,399

2,001
352,362
37

Other comprehensive incomeValuation difference on available-for-sale securities

38135

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(85)
(3)

(49)
(5)

Total other comprehensive income

(50)

80

Comprehensive income

1,986

2,480

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,950

2,441

3538

Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests

Comprehensive 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, 2018

September 30, 20192,9783,604

Depreciation
Amortization of goodwill

833
29

1,024
24

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

037

051

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

(12)

18

Increase (decrease) in provision for share-based
remuneration

1827

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

1625

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

(15)
(11)

(7)
(13)

Share of loss (profit) of entities accounted for using equity
method(7)(18)

Interest expenses
Loss on retirement of non-current assets

52
1847
12

Compensation expenses
Decrease (increase) in trade receivables–663

25(236)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

(679)
(39)

386
(101)

Other, net

(113)

(514)

Subtotal

3,770

4,357

Interest and dividends received

1113Interest paid
Compensation expenses paid

(52)
–(47)
(24)

Income taxes paid

(882)

(1,346)

Net cash provided by (used in) operating activities

2,846

2,952

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(524)
5(1,689)
3

Purchase of intangible assets
Purchase of investment securities

(180)
(500)

(213)
(0)

Other, net

(43)

(172)

(1,244)(2,071)

(5)
(0)

–
–

Proceeds from disposal of treasury shares
Dividends paid

515
(410)

–
(472)

Repayments of lease obligations

(117)

(125)

Net cash provided by (used in) financing activities

(18)

(598)

Effect of exchange rate change on cash and cash equivalents

(26)

(15)

Net increase (decrease) in cash and cash equivalents

1,557

266

Cash and cash equivalents at beginning of period

10,25813,675

Cash and cash equivalents at end of period

11,815

13,942

Cash flows from investing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Purchase of treasury shares6