Transcosmos : Financial Results for Q1

Published July 31, 2025 at 9:04 a.m. UTC

Source: MarketScreener

‌Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

July 31, 2025

Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under Japanese GAAP)

Company name: transcosmos inc. Listing: Tokyo Stock Exchange Securities code: 9715

URL: https://www.trans-cosmos.co.jp/english/ Representative: Masaaki Muta, Representative Director, Co-president

Takeshi Kamiya, Representative Director, Co-president Inquiries: Makoto Noguchi, Corporate Senior Officer,

Responsible for Accounting & Finance Division, Corporate Headquarters

Telephone: +81-50-1748-0265

Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2025	94,439	3.7	3,683	21.0	4,412	17.2	3,404	111.4
June 30, 2024	91,083	2.4	3,043	36.9	3,763	16.1	1,610	9.6

Note: Comprehensive income	For the three months ended June 30, 2025:	¥1,020 million	[(67.1)%]
	For the three months ended June 30, 2024:	¥3,101 million	[332.8%]

	Basic earnings per share	Diluted earnings per share
Three months ended	Yen	Yen
June 30, 2025	90.85	85.15
June 30, 2024	43.44	40.64

Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
June 30, 2025	205,583	125,804	56.2	3,084.93
March 31, 2025	207,984	129,068	57.0	3,166.17

Reference: Equity

As of June 30, 2025: ¥115,601 million As of March 31, 2025: ¥118,645 million

Cash dividends

	Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2025	-	0.00	-	106.00	106.00
Fiscal year ending March 31, 2026	-
Fiscal year ending March 31, 2026 (Forecast)		0.00	-	108.00	108.00

Note: Revisions to the forecast of cash dividends most recently announced: None

Forecasts for consolidated financial results for the fiscal year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Basic earnings per share

Fiscal year ending

Millions of

yen

Millions of

yen

Millions of

yen

Millions of

yen

Yen

March 31, 2026

400,000

6.4

15,500

7.1

17,000

8.4

11,500

1.5

306.89

Note: Revisions to the full-year earnings forecasts most recently announced: None

* Notes

Significant changes in the scope of consolidation during the period: None Newly included: -
Excluded: -
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

Number of issued shares (common shares)

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

As of June 30, 2025	43,863,116 shares
As of March 31, 2025	43,863,116 shares

Number of treasury shares at the end of the period

As of June 30, 2025	6,390,276 shares
As of March 31, 2025	6,390,229 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2025	37,472,869 shares
Three months ended June 30, 2024	37,066,635 shares

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
Proper use of earnings forecasts, and other special matters

(Cautionary statement with respect to forward-looking statements, and other information)

Forward-looking statements contained in this document are based on the information currently available to transcosmos inc. (the Company) and estimates based on reasonable assumptions. Actual operating results may differ materially from these forecasts due to various factors.

(Access to supplemental material for the consolidated financial results)

The Company will post the supplemental material for the consolidated financial results for the three months ended June 30, 2025, on the Company's website on Thursday, July 31, 2025.

‌Millions of yen			Thousands of U.S. dollars (Note 1)
ASSETS	As of June 30, 2025	As of March 31, 2025	As of June 30, 2025
Current assets:
Cash and deposits	¥ 72,633	¥ 73,502	$ 501,544
Notes and accounts receivable - trade, and contract assets	65,898	69,506	455,036
Merchandise and finished goods	3,528	3,391	24,363
Work in process	247	181	1,708
Supplies	77	70	536
Others	10,431	8,143	72,029
Less - allowance for doubtful accounts	(131)	(137)	(906)
Total current assets	152,685	154,658	1,054,312
Non-current assets:
Property, plant and equipment:
Buildings and structures, net	6,886	7,128	47,553
Tools, furniture and fixtures, net	5,611	6,086	38,749
Land	710	705	4,908
Others, net	1,100	1,179	7,600
Total property, plant and equipment, net	14,309	15,099	98,811
Intangible assets:
Goodwill	577	619	3,990
Software	3,768	3,945	26,019
Others	891	763	6,156
Total intangible assets	5,237	5,329	36,166
Investments and other assets:
Investment securities	4,025	3,363	27,793
Shares of unconsolidated subsidiaries and affiliates	11,942	12,851	82,467
Investments of capital subsidiaries and affiliates	1,778	1,853	12,280
Deferred tax assets	4,032	3,497	27,844
Guarantee deposits	10,443	10,236	72,110
Others	1,978	1,961	13,665
Less - allowance for doubtful accounts	(850)	(867)	(5,873)
Total investments and other assets	33,350	32,896	230,287
Total non-current assets	52,897	53,325	365,265
Total assets	¥ 205,583	¥ 207,984	$ 1,419,577

See accompanying notes to unaudited quarterly consolidated financial statements.

Millions of yen			Thousands of U.S. dollars (Note 1)
	As of June 30, 2025	As of March 31, 2025	As of June 30, 2025
LIABILITIES
Current liabilities:
Accounts payable - trade	¥ 14,605	¥ 14,223	$ 100,854
Short-term borrowings	53	80	368
Current portion of bonds payable	82	81	566
Current portion of long-term debt	2,058	2,059	14,214
Accounts payable - other	6,004	7,170	41,465
Accrued expenses	19,418	19,303	134,087
Income taxes payable	2,220	2,642	15,331
Accrued consumption taxes	6,210	5,247	42,887
Accrued compensation	9,123	6,671	63,000
Others	5,198	4,535	35,894
Total current liabilities	64,976	62,014	448,669
Non-current liabilities:
Bonds payable	124	128	856
Convertible bond-type bonds with subscription rights to shares	10,029	10,034	69,252
Long-term debt	2,138	4,151	14,765
Liability for retirement benefits	412	411	2,849
Others	2,098	2,176	14,489
Total non-current liabilities	14,802	16,901	102,212
Total liabilities	79,778	78,916	550,881
NET ASSETS
Shareholders' equity:
Capital stock	29,065	29,065	200,704
Capital surplus	6,889	6,889	47,569
Retained earnings	91,182	91,749	629,624
Treasury stock, at cost	(16,125)	(16,125)	(111,348)
Total shareholders' equity	111,011	111,579	765,550
Accumulated other comprehensive income :
Unrealized holding gain on securities	813	321	5,615
Foreign currency translation gains adjustments	3,776	6,744	26,075
Total accumulated other comprehensive income	4,589	7,066	31,690
Stock acquisition rights	0	0	4
Non-controlling interests	10,202	10,422	70,451
Total net assets	125,804	129,068	868,696
Total liabilities and net assets	¥ 205,583	¥ 207,984	$ 1,419,577

See accompanying notes to unaudited quarterly consolidated financial statements.

	Millions of yen		Thousands of U.S. dollars (Note 1)
	2025	2024	2025
Net sales	¥ 94,439	¥ 91,083	$ 652,119
Cost of sales	76,296	73,708	526,833
Gross profit	18,143	17,375	125,286
Selling, general and administrative expenses	14,460	14,331	99,853
Operating profit	3,683	3,043	25,432
Non-operating income (expenses):
Interest income	92	75	640
Interest expenses	(11)	(53)	(82)
Dividend income	21	39	149
Share of profits (losses) of entities accounted for using equity method	152	(17)	1,050
Foreign exchange gains	411	641	2,843
Impairment losses on fixed assets	(14)	-	(102)
Gains on sale of investment securities	22	-	152
Gains on sale of non-current assets	0	49	4
Losses on valuation of investment securities	(36)	(553)	(251)
Other income (expenses), net	53	32	368
Total non-operating income (expenses)	691	213	4,772
Profit before income taxes and non-controlling interests	4,374	3,257	30,205
Income taxes :
Current	1,524	1,996	10,530
Deferred	(728)	(677)	(5,032)
Total income taxes	796	1,318	5,497
Profit	3,578	1,938	24,707
Profit attributable to non-controlling interests	173	328	1,198
Profit attributable to owners of parent	¥ 3,404	¥ 1,610	$ 23,509

See accompanying notes to unaudited quarterly consolidated financial statements.

For the three months ended June 30, 2025 and 2024

	Millions of yen		Thousands of U.S. dollars (Note 1)
	2025	2024	2025
Profit	¥ 3,578	¥ 1,938	$ 24,707
Other comprehensive income :
Unrealized holding gains (losses) on securities	494	(123)	3,411
Foreign currency translation gains (losses) adjustments	(2,283)	659	(15,767)
Share of other comprehensive income from ownership in entities accounted for using the equity method	(768)	627	(5,303)
Total other comprehensive income	(2,557)	1,163	(17,659)
Comprehensive income	¥ 1,020	¥ 3,101	$ 7,047
Total comprehensive income attributable to:
Owners of parent	¥ 927	¥ 2,751	$ 6,407
Non-controlling interests	92	350	640

See accompanying notes to unaudited quarterly consolidated financial statements.

U.S. Dollar Amounts
The accompanying quarterly consolidated financial statements are expressed in yen, and solely for the convenience of the reader, have been translated into United States (U.S.) dollars at the rate of ¥144.82 = $1, the approximate exchange rate of the Tokyo Foreign Exchange Market as of June 30, 2025. This translation should not be construed as a representation that the amounts shown could be converted to U.S. dollars at such rate.
Uncertainties of entity's ability to continue as going concern
None.
When there are significant changes in amounts of equity
None

Quarterly statement of cash flows

Quarterly consolidated statement of cash flows is not prepared. The amounts of Depreciation of property, plant and equipment and Amortization of intangible assets, Amortization of goodwill for the three months ended June 30, 2025 and 2024 are as follows:

Millions of yen			Thousands of U.S. dollars (Note 1)
	2025	2024	2025
Depreciation of property, plant and equipment and Amortization of intangible assets	¥ 1,367	¥ 1,408	$ 9,445
Amortization of goodwill	42	64	290

Segment Information

Information on net sales, profit or loss and assets for each reportable segment for the three months ended June 30, 2025 and 2024

Millions of yen
			20	25
Reportable segments
	Parent company	Domestic subsidiaries and affiliates	Overseas subsidiaries and affiliates		Total	Eliminations	Consolidated
Net sales Sales to third parties	¥ 62,008	¥ 8,814	¥ 23,616		¥ 94,439	¥ －	¥ 94,439
Inter-segment sales and transfers	287	1,667	1,384		3,338	(3,338)	-
Total	¥ 62,295	¥ 10,481	¥ 25,001		¥ 97,778	¥ (3,338)	¥ 94,439
Segment profit	¥ 1,831	¥ 889	¥ 959		¥ 3,680	¥ 2	¥ 3,683

Thousands of U.S. dollars (Note 1)
			20	25
Reportable segments
	Parent company	Domestic subsidiaries and affiliates	Overseas subsidiaries and affiliates		Total	Eliminations	Consolidated
Net sales Sales to third parties	$ 428,177	$ 60,864	$ 163,077		$ 652,119	$ －	$ 652,119
Inter-segment sales and transfers	1,982	11,511	9,560		23,054	(23,054)	-
Total	$ 430,160	$ 72,376	$ 172,637		$ 675,174	$ (23,054)	$ 652,119
Segment profit	$ 12,646	$ 6,144	$ 6,622		$ 25,413	$ 19	$ 25,432

Note A: Segment profit of ¥ 2 million ($19 thousand) in "Eliminations" consists of inter-segment elimination. Note B: Total consolidated segment profit agrees with consolidated operating profit.

Millions of yen
			20	24
Reportable segments
	Parent company	Domestic subsidiaries and affiliates	Overseas subsidiaries and affiliates		Total	Eliminations	Consolidated
Net sales Sales to third parties	¥ 59,259	¥ 8,763	¥ 23,059		¥ 91,083	¥ －	¥ 91,083
Inter-segment sales and transfers	306	1,642	1,334		3,283	(3,283)	-
Total	¥ 59,566	¥ 10,406	¥ 24,394		¥ 94,366	¥ (3,283)	¥ 91,083
Segment profit	¥ 1,318	¥ 709	¥ 1,020		¥ 3,048	¥ (5)	¥ 3,043

Note A: Segment profit of ¥ (5) million in "Eliminations" consists of inter-segment elimination. Note B: Total consolidated segment profit agrees with consolidated operating profit.