Trancom : Consolidated Financial Results

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 Year Ended March 31, 2021
		(Based on Japanese GAAP)
										April 27, 2021
Company name:	TRANCOM CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:	9058	URL https://www.trancom.co.jp/ir/
Representative:	President			Yutaka Tsunekawa
Inquiries:	Manager / Finance & Accounting Group	Toshiki Ikeda	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	June 17, 2021
Scheduled date to file Securities Report:		June 18, 2021
Scheduled date to commence dividend payments:		June 18, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:			Yes
					(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results						Percentages indicate year-on-year changes
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended March 31, 2021	152,285	(6.8)	8,243	9.0		8,401	13.3	5,730	16.7
Year ended March 31, 2020	163,463	8.2	7,566	12.4		7,417	11.5	4,909	13.4
		Earnings per share	Diluted earnings per Profit attributable to	Ordinary profit/total Operating profit/net
			share	owners of			assets		sales
				parent/equity
		Yen		Yen		%				%		%
Year ended March 31, 2021	585.54	584.04		14.2				13.4		5.4
Year ended March 31, 2020	501.75	500.47		13.6				13.2		4.6
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen				%			Yen
As of March 31, 2021		65,613		43,276				65.4		4,383.19
As of March 31, 2020		59,545		38,250				63.7		3,878.18
(3) Consolidated cash flows	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities	at end of period
		Millions of yen	Millions of yen		Millions of yen	Millions of yen
Year ended March 31, 2021		8,808		(1,851)				(1,520)			19,973
Year ended March 31, 2020		7,287		(5,141)				(1,243)			14,575
2. Cash dividends
			Annual dividends per share				Total cash	Dividend payout	Ratio of dividends
								to net assets
								dividends (Total)	ratio (Consolidated)
		1st quarter-end 2nd quarter-end	3rd quarter-end Fiscal year-end	Total		(Consolidated)
		Yen	Yen	Yen	Yen	Yen Millions of yen	%		%
Year ended March 31, 2020	-	52.00	-	52.00	104.00		1,025	20.7		2.8
Year ended March 31, 2021	-	55.00	-	60.00	115.00		1,135	19.6		2.8
Year ending March 31, 2022	-	62.00	-	62.00	124.00			22.2
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

78,830

8.5

3,670

2.2

3,720

1.5

2,460

(4.0)

251.28

September 30, 2021

Full year

163,470

7.3

8,250

0.1

8,280

(1.4)

5,470

(4.5)

558.75

4. Notes

(1) Changes in significant subsidiaries during the year ended March 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:

No

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2021

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 March 31, 2021

534,530 shares

As of March 31, 2020

539,687 shares

Average number of shares during the period

Year ended March 31, 2021

9,786,575 shares

Year ended March 31, 2020

9,784,269 shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	14,575	19,973
Notes and accounts receivable - trade	21,421	21,223
Electronically recorded monetary claims - operating	3,767	3,672
Merchandise	39	14
Work in process	1	2
Supplies	18	14
Prepaid expenses	615	655
Other	129	307
Allowance for doubtful accounts	(0)	(0)
Total current assets	40,568	45,864
Non-current assets
Property, plant and equipment
Buildings and structures	8,112	9,443
Accumulated depreciation	(4,694)	(4,917)
Buildings and structures, net	3,418	4,526
Machinery, equipment and vehicles	6,193	6,617
Accumulated depreciation	(4,687)	(5,195)
Machinery, equipment and vehicles, net	1,506	1,422
Land	2,991	2,871
Leased assets	2,396	2,439
Accumulated depreciation	(1,540)	(1,688)
Leased assets, net	855	751
Right-of-use assets	656	1,496
Accumulated depreciation Right-of-use assets	(105)	(314)
Right-of-use assets,net	550	1,182
Construction in progress	1,671	489
Other	1,377	1,565
Accumulated depreciation	(893)	(1,061)
Other, net	483	504
Total property, plant and equipment	11,477	11,747
Intangible assets
Goodwill	892	756
Software	1,330	1,339
Software in progress	356	297
Customer Relationship	457	373
Other	162	158
Total intangible assets	3,198	2,926
Investments and other assets
Investment securities	1,841	2,598
Deferred tax assets	699	586
Deferred tax assets for land revaluation	-	19
Guarantee deposits	1,566	1,685
Other	209	198
Allowance for doubtful accounts	(16)	(13)
Total investments and other assets	4,300	5,075
Total non-current assets	18,976	19,749
Total assets		59,545	65,613

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	12,500	12,135
Lease obligations	447	629
Accounts payable - other	714	736
Accrued expenses	1,342	1,365
Income taxes payable	1,324	1,545
Accrued consumption taxes	998	1,624
Provision for bonuses	643	635
Other	373	322
Total current liabilities	18,344	18,995
Non-current liabilities
Lease obligations	1,275	1,589
Deferred tax liabilities	96	96
Deferred tax liabilities for land revaluation	11	-
Provision for stocks payment	257	284
Provision for share awards for directors (and other	249	301
officers)
Retirement benefit liability	106	104
Asset retirement obligations	576	593
Other	377	372
Total non-current liabilities	2,950	3,342
Total liabilities	21,294	22,337
Net assets
Shareholders' equity
Share capital	1,080	1,080
Capital surplus	1,740	1,796
Retained earnings	36,175	40,921
Treasury shares	(1,044)	(1,072)
Total shareholders' equity	37,951	42,725
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	165	485
Revaluation reserve for land	26	(44)
Foreign currency translation adjustment	(186)	(248)
Remeasurements of defined benefit plans	(11)	(8)
Total accumulated other comprehensive income	(5)	184
Share acquisition rights	104	104
Non-controlling interests	199	261
Total net assets	38,250	43,276
Total liabilities and net assets		59,545	65,613

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Consolidated statements of income and consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2020	March 31, 2021
Net sales	163,463	152,285
Cost of sales	153,172	141,306
Gross profit	10,290	10,979
Selling, general and administrative expenses	2,724	2,735
Operating profit	7,566	8,243
Non-operating income
Interest and dividend income	22	27
Share of profit of entities accounted for using equity method	42	61
Subsidy income	4	271
Other	29	75
Total non-operating income	98	436
Non-operating expenses
Interest expenses	104	116
Loss on retirement of non-current assets	32	15
Loss on sale of non-current assets	2	29
Bad debt expenses	42	5
Other	64	112
Total non-operating expenses	247	278
Ordinary profit	7,417	8,401
Extraordinary losses
Compensation expenses	25	-
Total extraordinary losses	25	-
Profit before income taxes	7,391	8,401
Income taxes - current	2,503	2,682
Income taxes - deferred	(77)	(85)
Total income taxes	2,426	2,596
Profit	4,965	5,804
Profit attributable to
Profit attributable to owners of parent	4,909	5,730
Profit attributable to non-controlling interests	56	74
Other comprehensive income
Valuation difference on available-for-sale securities	51	320
Revaluation reserve for land	-	(70)
Foreign currency translation adjustment	(12)	(73)
Remeasurements of defined benefit plans, net of tax	(9)	2
Total other comprehensive income	29	179
Comprehensive income	4,995	5,984
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	4,933	5,920
Comprehensive income attributable to non-controlling interests	61	63

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