Transcosmos : FY2026/3 Earnings Conference Presentation Material

FY2026 Earnings Conference Presentation (April 1, 2025 - March 31, 2026)

April 30, 2026 transcosmos inc.

1. Executive Summary

   • Executive Summary

   • Consolidated Net Sales & Operating Profit Trends

   • Consolidated Net Sales & Operating Profit Quarterly

     Trends

2. FY2026 Financial Results Summary

   • Consolidated Income Statement

   • FX Impact

   • Parent Company Operating Profit Analysis

   • transcosmos inc. Net Profit Analysis

   • Business Portfolio

   • Business Unit Performance Summary

   • Domestic BPO Business

   • Domestic CX Business

   • Global Business

   • Consolidated Balance Sheet

   • Consolidated Cash Flow Statement

   • CAPEX, Amortization & Depreciation, Employees,

     Service Bases

3. FY2027 Business Outlook
4. New Medium-Term Business Plan FY27-FY29

   • Overview

     • Medium-Term Business Plan FY2024-FY2026 Review

     • Market Landscape

     • Group Policy

     • 5 Key Actions

     • Quantitative Targets

     • KPI

     • Consolidated Operating Profit Analysis (FY29 vs. FY26)

     • New Medium-Term Business Plan Positioning

     • Profitability Enhancement Toward FY36 Targets

   • Financial Strategy

     • Financial Policy

     • Cash Allocation

     • Balance Sheet (FY29 vs. FY26)

     • Shareholder Return Policy

5. Corporate Philosophy

   • Founding Spirit

   • Objectives of Setting New Purpose, Vision, and Values

   • Contents of New Purpose, Vision, and Values

• Net sales grew 4.8% YoY, reaching a new record. Operating profit also reached a record level, with the OP margin ris ing from 3.9% to 4.2% YoY (excluding FY2021-FY2023 impacted by COVID-related jobs).

  • Domestic BPO business grew sales, driven by highly specialized back-office operations and digitally enabled BPO services built on capabilities acquired through joint ventures.

  • Domestic CX business grew sales, driven by an increase to 125 clients deploying our

    integrated CX platform, trans-DX for Support, which boosted sales in digital contact centers.

  • Global business increased sales across both CX and BPO businesses.

  • Other affiliates saw enhanced profitability at lis ted subsidiaries, including Applied Technology.

• transcosmos inc. net profit increased by ¥1,750mn YoY, driven by higher FX gains in addition to an increase in operating profit. EPS increased from ¥302.4 to 349.2. With the dividend payout target raised to 40%, dividend per share is expected to increase to

¥140, up ¥34.

• Net sales hit a new record.

• Operating profit reached a record level (excluding FY2021-FY2023 impacted by COVID-related jobs).

  Consolidated net sales trends

In ¥100mn (rounded to the nearest ¥10mn) In ¥100mn (rounded to the nearest ¥10mn)

Operating Margin

7.3%

6.2%

5.3%

3.4%

3.9%

4.2%

3.2%

258.5

232.9

177.5

24/3期

20/3期

21/3期

22/3期

23/3期

25/3期

26/3期

24/3期

20/3期

21/3期

22/3期

23/3期

25/3期

26/3期

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY20 FY21 FY22 FY23

FY24

FY25 FY26

• Q4 net sales up 5.2% YoY to ¥100,960mn, reaching a new quarterly record. Marked eight consecutive quarters of growth since Q1 FY25.

• Q4 operating profit down ¥200mn YoY, with a 0.4-point margin decrease, due to lump-sum payments related to personnel system

  revisions at the parent company. On a QoQ basis, down ¥2,190mn, with a 2.2-point margin decline.

  Consolidated net sales quarterly trends

25/3 1Q

25/3 2Q

25/3 3Q

25/3 4Q

25/3 1Q

25/3 2Q

25/3 3Q

25/3 4Q

26/3 1Q

26/3 2Q

26/3 3Q

26/3 4Q

26/3 1Q

26/3 2Q

26/3 3Q

26/3 4Q

In ¥100mn (rounded to the nearest ¥10mn)

Sales Growth Rate

In ¥100mn (rounded to the nearest ¥10mn)

Operating Margin

• Net sales: FX had a negative impact of ¥2,400mn on overseas affiliates , primarily due to the YoY decline in the average South Korean

  won against the yen. On a local currency basis, net sales increased by 5.4%.

• Non-operating income (loss ): FX gains increased on foreign-currency-denominated bonds owned by the Company, primarily due to the YoY depreciation of the yen against the U.S. dollar.

  Key currency pairs: JPY/KRW; JPY/CNY

  Consolidated net sales

  	FY2025	FY2026			FX Impact	Local Currency Basis
  			Change	%Change		Change	%Change
  Overseas affiliates	1,022.8	1,054.4	+31.6	+3.1%	-24.0	+55.6	+5.4%

  *The table above shows the FX impact on overseas subsidiaries that significantly affect the Company's consolidated financial results when translated into the reporting currency. FX fluctuations have minimal impact on consolidated operating profit.

  *Overseas affiliates' profit and loss are translated into the reporting currency using the average exchange rate for January to December 2025.

  Non-operating profit (loss)

  Key currency pair: USD/JPY

  	FY2025	FY2026
  			Change
  FX gains	1.8	11.6	+9.8

  In ¥100mn (rounded to the nearest ¥10mn)

  *Major foreign-currency-denominated bonds owned by the Company are translated into the reporting currency using the exchange rate as of the

• Operating profit up ¥1,570mn (+22.1%)

Up ¥3,560mn, driven by a 0.5-point margin increase from enhanced target management, focusing on high-growth and high-profitability projects, in addition to sales growth, a higher utilization rate, and progress in price

negotiations.

Maintained the SG&A expense-to-sales ratio at FY2025 levels, despite a ¥1,990mn increase, reflecting investments

to support medium-term business growth, such as enhancing information security, strengthening Group

governance, and increasing AI utilization

-19.9

+35.6

Gross profit

SG&A expenses

71.2

OP margin 2.9%

86.9

OP margin

3.4%

+15.7

In ¥100mn (rounded to the nearest ¥10mn)

Gross margin +0.5pt (20.1% ⇒ 20.6%)

SG&A expense-to-sales ratio -0.0pt (17.2% ⇒ 17.2%)

FY2025 FY2026

• transcosmos inc. net profit up ¥1,750mn (+15.5%)

  Non-operating income (loss)

Up ¥1,200mn, due to an increase in FX gains.

Down ¥300mn, due to a decrease in gains on the sale of investment securities. Up ¥1,220mn, reflecting an increase in profit before income taxes.

+12.0

-3.0

+20.8

-12.2

-0.1

Operating profit

Non-operating

profit (loss)

Extraordinary

income (loss)

Income taxes

Non-

controlling

interests

113.3

130.8

+17.5

In ¥100mn (rounded to the nearest ¥10mn)

FY2025 FY2026

Delivering CX/BPO services for both local markets and offshore operations across Asia, North America, and Europe.

Domestic BPO Business

Domestic CX Business

Other Affiliates

Delivering common back-end functions (accounting, HR, IT) and industry-specific engineering BPO services. Strengthening business expertise through JVs.

Delivering integrated services, incl. trans-DX series, managing digital customer touchpoints across the customer journey from marketing to customer care.

Subsidiaries/affiliates, incl. some listed companies, delivering BPO/CX businesses across industries.

Other

Business Unit Performance Summary

*Results for each business are compiled based on management accounting categories and therefore differ from financial accounting.

• Net sales: ¥120,010mn, +12.3% YoY

  • Driven by enhanced expertise through JVs and digital capabilities, with growth across common back-end functions outsourcing, industry-

    specific engineering BPO, and affiliates.

• Operating margin: 7.1% -0.3pt YoY

  • Down due to a fewer industry-specific engineering BPO projects and upfront investments.

• Net sales: ¥193,870mn, +6.2% YoY

  • Orders for trans-DX expanded, and sales grew in digital contact centers.

• Operating margin: 2.8%, +0.6pt YoY

  • Profitability increased in digital contact centers

and digital promotion.

• Net sales: ¥38,380mn, +1.7% YoY

  • Up, led by growth at playground, despite sales declines at listed companies, Applied Technology and J-Stream.

• Operating margin: 6.8%, +1.6pt YoY

  • Applied Technology, a listed company, and playground increased profitability.

• Net sales: ¥110,080mn, +7.6% YoY

  • Sales grew in the CX business, notably digital contact centers, and in the BPO business, led by offshore development.

• Operating margin: 1.3%, -0.6pt YoY

  • Profitability declined due to a downsizing of a CX business project.

Domestic BPO Business

*Figures below include net sales and operating profit of equity-method affiliates.

In ¥100mn (rounded to the nearest ¥10mn)

Net sales

1,068.4

1,200.1

FY26

FY25

FY26

FY25

79.5

85.0

167.5

Domestic CX Business

*Net sales below are calculated on a gross basis.

*Figures below include net sales and operating profit of equity-method affiliates.

In ¥100mn (rounded to the nearest ¥10mn)

Net sales

tes

1,825.0

49.8

Affilia

E-

comme rce/Oth er

1,938.7

55.0

• Digital contact center: Up 5.6%, led by higher per-account sales.

• Digital integration: Despite a 3.0% drop YoY due to the downsizing of a large project, net sales returned to positive YoY in Q4.

• Digital promotion: Up 20.0%, led by the launch of a large project secured last year.

• Integrated CX platform, trans -DX for Support, expanded clients to 125.

  40.7

  Net sales breakdown

  In ¥100mn (rounded to the nearest ¥10mn)

  25/3期

  26/3期

  25/3期

  26/3期

  	FY25				FY26
  	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
  Digital contact centers	270.1	276.9	279.0	275.6	285.0	295.8	294.9	287.6
  Digital integration	76.7	78.2	78.6	78.5	71.4	73.2	74.8	83.0
  Digital promotion	74.5	73.6	73.4	78.6	85.6	86.3	93.3	94.7
  E-commerce support/Other	15.8	17.2	15.3	13.3	13.9	16.4	16.6	15.9
  Affiliates	11.9	12.6	12.8	12.5	12.7	14.2	11.8	11.7

  FY25 FY26 FY25 FY26

  Net sales

Operating profit

promotion, in addition to sales growth. Margin up 0.6 points. 15

Global Business

*Figures below are calculated based on the internal exchange rates.

*Figures below include net sales and operating profit of equity-method affiliates.

*For SG&A expenses, parent company's management costs are allocated on a pro rata basis.

In ¥100mn (rounded to the nearest ¥10mn)

Net sales

1,023.3

1,100.8

• CX business: Up 8.4%, led by growth in contact centers in Greater China and South Korea.

  185.2

19.4

14.0

FY25

FY26

FY25

FY26

• BPO business: Up 3.7%, led by growth in offs hore development in Greater China.

  Net sales breakdown

  In ¥100mn (rounded to the nearest ¥10mn)

  	FY25				FY26
  	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
  CX	202.9	213.0	206.6	222.2	221.8	228.2	235.5	230.3
  BPO	42.3	43.9	44.3	48.1	43.0	45.5	45.5	51.2

  (Countries/Regions)

  Greater China	67.1	73.0	64.1	77.1	72.3	80.2	84.3	90.3
  South Korea	111.2	117.1	118.9	118.4	120.4	124.4	130.1	128.5
  Southeast Asia	59.9	60.5	62.3	68.4	65.3	64.3	62.0	58.0
  Europe & U.S./ Other	6.9	6.4	5.6	6.5	6.8	4.9	4.6	4.6

  Operating profit

  25/3期

  26/3期

  25/3期

  26/3期

  • Down due to the downsizing of a large global CX project in Southeast Asia.

Margin down 0.7 points.

Busines s Outline Busines s Outline

Busines s Outline Busines s Outline

• Assets: Cash and deposits, as well as notes and account receivable - trade and contract assets, increased.

• Liabilities: Accounts payable - trade and accrued expenses increased.

  • Retained earnings +90.9

• Net assets: Retained earnings increased.

• Operating cash flow: Profit before income taxes and changes in trade payables contributed positively.

• Investing cash flow: Along with the expansion and the opening of new centers, payments for guarantee deposits increased, while

  proceeds from refunds of guarantee deposits decreased.

• Financing cash flow: Dividends paid increased.

*Free cash flow = Cash flows from operating activities + Cash flows from investing activities