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Supplemental Material for the Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 – June 30, 2025) July 31, 2025 transcosmos inc.
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2 Table of Contents 1. Executive Summary 2. Consolidated Statement of Income Summary 3. Consolidated Net Sales Analysis 4. Consolidated Net Sales Analysis (Quarterly Trend) 5. Consolidated Net Sales Analysis (BPO Services) 6. Consolidated Net Sales Analysis (CX Services) 7. Consolidated Net Sales Analysis (Overseas by Geographic Market) 8. Consolidated Operating Profit Analysis 9. Consolidated Operating Profit Analysis (Quarterly Trend) 10. Parent Company Operating Profit Analysis 11. transcosmos inc. Profit Analysis 12. Consolidated Balance Sheet Summary 13. CAPEX, Amortization/Depreciation, Employees, Service Bases
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3 1. Executive Summary ⚫ Net sales grew 3.7% YoY, hitting record high for Q1. Operating profit also marked highest ever for Q1, OP margin up from 3.3% to 3.9% YoY. (excluding three fiscal years impacted by COVID-related jobs from FY2021/3 to FY2023/3) ⚫ BPO services net sales up 7.4% YoY due to continued strong outsourcing demands, mainly in highly specialized areas usually managed by full-time employees. OP margin up 0.6 points. ⚫ CX services net sales up 3.6% YoY reflecting solid bookings for trans-DX for Support while digital contact centers returned to positive growth. OP margin up 0.5 points. ⚫ Overseas net sales by geographic markets up 2.1% YoY backed by sales growth in Southeast Asia, China and South Korea. Europe and the U.S. contributed to higher profitability, along with progress in business restructuring processes. ⚫ transcosmos inc. net profit achieved significant growth boosted by an increase in operating profit and a decrease in extraordinary losses and tax expenses. Consolidated net sales ¥94,440mn (YoY: +¥3,360mn) Consolidated operating profit ¥3,680mn (YoY: +¥640mn) transcosmos inc. net profit ¥3,400mn (YoY: +¥1,790mn)
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In ¥100mn (rounded to the nearest ¥100mn) Q1 FY2025/3 Q1 FY2026/3 Change FY2026/3 (outlook) Amount Mix Amount Mix Amount %Change Amount Progress Net sales 910.8 100.0% 944.4 100.0% +33.6 +3.7% 4,000.0 23.6% Parent Company 595.7 65.4% 623.0 66.0% +27.3 +4.6% Domestic Affiliates 104.1 11.4% 104.8 11.1% +0.8 +0.7% Overseas Affiliates 243.9 26.8% 250.0 26.5% +6.1 +2.5% Elimination of intersegment transaction -32.8 -3.6% -33.4 -3.6% -0.6 -1.7% Gross profit 173.8 19.1% 181.4 19.2% +7.7 +4.4% SG&A expenses 143.3 15.7% 144.6 15.3% +1.3 +0.9% Operating profit 30.4 3.3% 36.8 3.9% +6.4 +21.0% 155.0 23.8% Parent Company 13.2 2.2% 18.3 2.9% +5.1 +38.9% Domestic Affiliates 7.1 6.8% 8.9 8.5% +1.8 +25.5% Overseas Affiliates 10.2 4.2% 9.6 3.8% -0.6 -6.0% Elimination of intersegment transaction -0.1 - 0.0 - +0.1 - Non-operating income (loss) 7.2 0.8% 7.3 0.8% +0.1 +1.2% Ordinary profit 37.6 4.1% 44.1 4.7% +6.5 +17.2% 170.0 26.0% Extraordinary income (loss) -5.1 -0.6% -0.4 -0.0% +4.7 +92.5% Profit attributable to owners of parent 16.1 1.8% 34.0 3.6% +17.9 +111.4% 115.0 29.6% 2. Consolidated Statement of Income Summary *For each segment profit row, figures in the Mix columns are profit margins. 4
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+33.6 5 3. Consolidated Net Sales Analysis Parent Company Domestic Affiliates Overseas Affiliates Elimination of intersegment transaction +6.1+0.8 -0.6 Q1 FY2025/3 Consolidated net sales Q1 FY2026/3 Consolidated net sales 910.8 944.4 In ¥100mn (rounded to the nearest ¥100mn) +27.3 ⚫ Consolidated net sales up ¥3,360mn (+3.7%) Parent Company Up reflecting sales growth achieved by both CX and BPO services. Domestic Affiliates Up reflecting higher sales in a subsidiary specialized in IT consulting and one in system development, etc. Overseas Affiliates Up reflecting sales growth in subsidiaries in China, South Korea, and Southeast Asia.
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6 Reference: Effects of currency fluctuations on Overseas Affiliate sales *The bar charts above only show the effects of currency fluctuations on overseas subsidiaries that have a major impact on the Company’s consolidated financial results when translating financial statements into the reporting currency to produce consolidated financial statements. The effects of currency fluctuations have little impact on the consolidated operating profit. +9.4 712.6 -3.3 Change in sales on a local currency basis Currency fluctuations In ¥100mn (rounded to the nearest ¥100mn) Q1 FY2026/3Q1 FY2025/3 243.9 250.0 ⚫ Net sales up ¥940mn on a local currency basis reflecting sales growth in subsidiaries in South Korea and China. Currency fluctuations negatively affected sales by ¥330mn.
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595.7 610.8 618.2 615.6 623.0 104.1 106.4 112.4 110.0 104.8 243.9 261.7 247.0 270.2 250.0 -32.8 -34.3 -34.4 -35.9 -33.4 +2.4% +3.7% +3.3% +5.7% +3.7% 25/3 1Q 25/3 2Q 25/3 3Q 25/3 4Q 26/3 1Q 7 4. Consolidated Net Sales Analysis (Quarterly Trend) ⚫ YoY: Up ¥3,360mn due to higher sales achieved by all segments. ⚫ QoQ: Despite Parent Company achieving sales growth, net sales dropped ¥1,540mn QoQ due to a decline in Overseas Affiliates, etc. In ¥100mn (rounded to the nearest ¥100mn) %Net sales growth -15.4 910.8 959.8944.6 943.2 944.4 +33.6 Parent Company Domestic Affiliates Overseas Affiliates Elimination of intersegment transaction
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CX Services (~70% of consolidated net sales) Front-office services: Integrated services covering all digital customer touchpoints across the customer journey from marketing to customer care Japan Digital contact center Customer support Digital integration Website & app development, improvement and operations services, social platform operations including LINE apps Digital advertisement Internet ads services E-commerce one-stop E-commerce site development & operations, and fulfillment services Overseas (mainly contact center and e-commerce) South Korea, China, Southeast Asia, and Europeand the U.S. BPO services (~30% of consolidated net sales) Back-office services: Common back-end functions outsourcing (e.g. accounting, HR, IT) as well as industry- specific engineering BPO Japan Common back-end functions digital outsourcing Accounting, HR, procurement & purchasing, order management, sales admin and IT system operations & maintenance Industry-specific digital engineering BPO Services to support systems and operations for the manufacturing and construction industries Overseas South Korea, China, Southeast Asia, and Europeand the U.S. Reference: Service portfolio 8
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159.1 163.4 167.9 170.1 172.8 74.6 76.4 78.5 78.8 81.3 45.6 43.8 48.3 48.0 46.3 52.4 55.9 55.4 61.3 56.0 6.3% 7.3% 7.1% 7.4% 6.9% 25/3 1Q 25/3 2Q 25/3 3Q 25/3 4Q 26/3 1Q 159.1 172.8 74.6 81.3 45.6 46.3 52.4 56.0 6.3% 6.9% 25/3期 1Q 26/3期 1Q 5. Consolidated Net Sales Analysis (BPO Services) *Net sales for each service are calculated based on the sales mix used for management accounting, and are not adjusted for intra-segment transactions. ⚫ BPO services net sales up 7.4% YoY with a 0.6 point increase in OP margin. ⚫ In Japan, both industry-specific digital engineering BPO and common back-end functions digital outsourcing services continued to achieve higher sales by capturing outsourcing demands in highly specialized job areas usually performed by full-time employees. In the overseas market, sales grew in China offshore development business. YoY net sales/OP margin (Q1) Quarterly trend (QoQ) In ¥100mn (rounded to the nearest ¥100mn) Net sales +¥2,470mn/+7.4% OP margin +0.6pt OP margin Net sales -¥170mn/-0.5% OP margin -0.6pt 9 Overseas subsidiaries Domestic subsidiaries Industry-specific engineering BPO Common back-end functions outsourcing +7.0% +1.6% +9.0% +8.6% 331.7 356.4 331.7 358.1339.6 350.1 356.4 Q1 FY25/3 Q1 FY26/3 Q1 FY25/3 Q3 FY25/3 Q1 FY26/3Q2 FY25/3 Q4 FY25/3
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270.1 276.9 279.0 275.6 285.0 76.7 78.2 78.5 78.4 71.4 74.6 73.6 73.5 78.6 85.6 62.7 70.2 67.1 63.1 62.1 198.3 213.5 200.1 216.3 202.5 2.0% 2.8% 2.7% 2.0% 2.4% 25/3 1Q 25/3 2Q 25/3 3Q 25/3 4Q 26/3 1Q 10 270.1 285.0 76.7 71.4 74.6 85.6 62.7 62.1 198.3 202.5 2.0% 2.4% 25/3期 1Q 26/3期 1Q 6. Consolidated Net Sales Analysis (CX Services) +2.1% 682.3 706.5 682.3 706.5712.4 ⚫ CX services net sales up 3.6% YoY with a 0.5 point increase in OP margin. ⚫ trans-DX for Support achieved solid bookings and digital contact centers returned to positive growth. Profitability increased due to progress in price negotiations, higher productivity achieved with the use of generative AI and other digital technologies. Digital integration sales dropped due to the downsizing of an existing large project. -0.9% +14.8% -6.9% +5.5% YoY net sales/OP margin (Q1) Quarterly trend (QoQ) In ¥100mn (rounded to the nearest ¥100mn) Net sales +¥2,420mn/+3.6% OP margin +0.5pt 698.3 E-commerce one-stop, other/ Domestic subsidiaries OP margin Net sales -¥560mn/-0.8% OP margin +0.4pt Digital contact center Digital integration Digital promotion Overseas subsidiaries 712.1 Q1 FY25/3 Q1 FY26/3 Q1 FY25/3 Q3 FY25/3 Q1 FY26/3Q2 FY25/3 Q4 FY25/3 *Net sales for each service are calculated based on the sales mix used for management accounting, and are not adjusted for intra-segment transactions.
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101.9 102.7 65.0 67.7 49.4 53.6 11.7 8.9 25.0% 24.7% 25/3期 1Q 26/3期 1Q 7. Consolidated Net Sales Analysis (Overseas by Geographic Market) ⚫ South Korea: Up 0.8% YoY. Digital contact center sales increased. ⚫ China: Up 4.1% YoY. Digital contact center sales increased. ⚫ Southeast Asia: Up 8.4% YoY. E-commerce business sales increased in Thailand. ⚫ Europe and the U.S., other: Down 24.3% YoY. Business restructuring underway to eliminate deficit in Europe and the U.S. YoY net sales/OP margin (Q1) Quarterly trend (QoQ) In ¥100mn (rounded to the nearest ¥100mn) Net sales +¥480mn/+2.1% %Overseas net sales -0.4pt %Overseas net sales Net sales -¥1,700mn/-6.8% %Overseas net sales -1.4pt 11 *Overseas net sales are categorized by country or region based on clients’ location, therefore, figures are different from the Overseas Affiliates segment. -24.3% +8.4% +4.1% +0.8% 228.1 232.9 228.1 232.9245.0 228.7 249.9 101.9 107.0 107.3 102.8 102.7 65.0 74.9 60.8 77.2 67.7 49.4 50.6 49.5 59.8 53.6 11.7 12.6 11.1 10.1 8.9 25.0% 25.9% 24.2% 26.0% 24.7% 25/3 1Q 25/3 2Q 25/3 3Q 25/3 4Q 26/3 1QQ1 FY25/3 Q1 FY26/3 Q1 FY25/3 Q3 FY25/3 Q1 FY26/3Q2 FY25/3 Q4 FY25/3 Europe and the U.S., other Southeast Asia China South Korea
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12 8. Consolidated Operating Profit Analysis +6.4 Q1 FY2025/3 Consolidated operating profit Q1 FY2026/3 Consolidated operating profit +5.1 +1.8 -0.6 +0.1 30.4 OP margin 3.3% 36.8 OP margin 3.9% Parent Company Domestic Affiliates Overseas Affiliates Elimination of intersegment transaction In ¥100mn (rounded to the nearest ¥100mn) ⚫ Operating profit up ¥640mn (+21.0%) Parent Company Up reflecting increased profitability in both CX and BPO services. Domestic Affiliates Up reflecting profit growth in a listed subsidiary, etc. Overseas Affiliates Profits up in subsidiaries in China and South Korea. Profitability increased in subsidiaries in Europe and the U.S. due to progress in business restructuring. Despite these increases, operating profit down due to a decline in subsidiaries in Southeast Asia.
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13.2 20.4 20.8 16.8 18.3 7.1 7.8 7.9 5.8 8.9 10.2 13.2 11.7 11.3 9.6 -0.1 -0.5 -0.4 -0.5 0.0 3.3% 4.3% 4.2% 3.5% 3.9% 25/3 1Q 25/3 2Q 25/3 3Q 25/3 4Q 26/3 1Q 13 9. Consolidated Operating Profit Analysis (Quarterly Trend) ⚫ YoY: Up ¥640mn reflecting profit growth in Parent Company and Domestic Affiliates. OP margin up 0.6 points. ⚫ QoQ: Up ¥340mn reflecting profit growth in Parent Company and Domestic Affiliates. OP margin up 0.4 points. Profit in Overseas Affiliates dropped due to a decline in profits in Southeast Asia. In ¥100mn (rounded to the nearest ¥100mn) OP margin +3.4 30.4 33.540.9 40.0 36.8 +6.4 Parent Company Domestic Affiliates Overseas Affiliates Elimination of intersegment transaction
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14 10. Parent Company Operating Profit Analysis +5.1 Gross profit margin +0.3pt (19.7% ⇒ 20.1%) In ¥100mn (rounded to the nearest ¥100mn) Q1 FY2025/3 Operating profit 13.2 OP margin 2.2% Q1 FY2026/3 Operating profit 18.3 OP margin 2.9% +7.4 -2.2 Gross profit SG&A expenses SG&A expenses ratio -0.4pt (17.5% ⇒ 17.1%) ⚫ Operating profit up ¥510mn (+38.9%) Up ¥740mn reflecting a 0.3 point increase in gross profit margin led by progress in price negotiations, higher utilization rate, etc. in addition to sales growth. SG&A expense ratio decreased 0.4 points despite a ¥220mn increase in SG&A expenses, which includes investments in strengthening management base including information systems and digital talent development, as well as upfront investments in business expansion including the use of AI. Gross profit SG&A expenses Strategic investments for medium- term growth • Information security enhancement • Group governance enhancement • AI utilization
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15 11. transcosmos inc. Profit Analysis +17.9 Q1 FY2025/3 transcosmos inc. net profit Q1 FY2026/3 transcosmos inc. net profit +6.4 16.1 Operating profit 34.0 +0.1 Non-operating income (loss) Extraordinary income (loss) Income taxes +1.5 Non-controlling interests +4.7 +5.2 Non-operating income (loss) Extraordinary income (loss) Income taxes ⚫ transcosmos inc. net profit up ¥1,790mn (+111.4%) In ¥100mn (rounded to the nearest ¥100mn) Up ¥10mn reflecting the posting of share of profit of entities accounted for using equity method, etc. (posted share of loss of entities accounted for using equity method in the same period last year) Up ¥470mn due to a decline in loss on valuation of investment securities, etc. Down ¥520mn due to a decrease in tax expenses, as last year’s valuation losses on stocks are included in deductible expenses for tax purposes.
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16 12. Consolidated Balance Sheet Summary In ¥100mn (rounded to the nearest ¥100mn) End of Mar. 2025 End of Jun. 2025 Change Current assets 1,546.6 1,526.9 -19.7 Non-current assets 533.3 529.0 -4.3 Total assets 2,079.8 2,055.8 -24.0 Current liabilities 620.1 649.8 +29.6 Non-current liabilities 169.0 148.0 -21.0 Total liabilities 789.2 797.8 +8.6 Net assets 1,290.7 1,258.0 -32.6 Total liabilities & net assets 2,079.8 2,055.8 -24.0 ⚫ Assets: Notes and accounts receivable - trade, and contract assets decreased after the collection of trade receivables at the end of last fiscal year, etc. ⚫ Liabilities: Long-term borrowings decreased after the repayment of borrowings. The increase in provision for bonuses reflects reserves for bonus payments calculated and provided for based on estimated payment amounts for the current fiscal period. ⚫ Net assets: Foreign currency translation adjustment decreased. Cash and deposits 735.0 726.3 -8.7 Interest-bearing liabilities 165.3 144.9 -20.5 Net cash* 569.7 581.5 +11.8 Net cash* to monthly sales ratio 1.8 1.8 +0.0 • Notes and accounts receivable – trade -36.1 • Property, plant and equipment -7.9 • Investment securities +6.6 • Shares of subsidiaries and associates -9.1 • Accrued expenses -11.7 • Provision for bonuses +24.5 • Long-term borrowings -20.1 • Retained earnings -5.7 • Foreign currency translation adjustment -29.7 • Decreased due to dividend payments, repayments of borrowings, etc. *Net cash = Cash and deposits – interest-bearing liabilities
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17 In ¥100mn (rounded to the nearest ¥100mn) Q1 FY2025/3 Q1 FY2026/3 %Change Capital expenditures 9.8 6.0 -38.7% Depreciation expenses 14.1 13.7 -2.8% End of Mar. 2025 End of Jun. 2025 Change Consolidated basis 41,682 42,100 418 (Temporary employees) 28,971 28,135 -836 Parent Company 17,910 18,412 502 (Temporary employees) 21,002 20,880 -122 End of Mar. 2025 End of Jun. 2025 Change Service bases 184 182 -2 (Japan) 72 71 -1 (Overseas) 112 111 -1 ⚫ CAPEX Capital expenditures decreased in Parent Company. ⚫ Depreciation Depreciation expenses decreased in Domestic and Overseas Affiliates. ⚫ Consolidated basis Employees increased primarily in Parent Company. Temporary employees decreased in Southeast Asia due to downsizing of some projects. ⚫ Parent Company Employees increased due to new graduate hires. ⚫ Japan Contact centers decreased. ⚫ Overseas Integrated some centers in China. 13. CAPEX, Amortization/Depreciation, Employees, Service Bases ⚫ Capital expenditures/Depreciation expenses ⚫ Number of Employees ⚫ Service Bases *Service bases included the Company’s own bases, head offices, branches, sales offices and bases of subsidiaries, associates, and partners.
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Notes ⚫ Forward-looking statements included in this document are based on information available on the date of the announcement and estimates based on reasonable assumptions. Actual future results may differ materially from these forecasts depending on Japanese economic conditions, trends in the stock market and information services industry, evolution of new services or technologies, and other diverse other factors. The Company assumes no obligation to update or revise any forward-looking statements. ⚫ In this document, yen is rounded to the nearest hundred million and the percentage is rounded to one decimal place.
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IR Contact IR Department, Corporate Headquarters, transcosmos inc. E-Mail. ir_info@trans-cosmos.co.jp