Independent Auditor’s ReportJapan Transcity Corporation
For the Years ended March 31,
2024 and 2023

KPMG AZSA LLC
July 2024

This independent auditor’s report prepared by KPMG AZSA LLC (including the one that issigned with electoronic signatures) shall not be reprinted, disclosed, quoted, summarized,
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© 2024 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law
and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee. All rights reserved.

Independent auditor’s report
To the Board of Directors of Japan Transcity Corporation:
Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Japan Transcity Corporation(“the Company”) and its consolidated subsidiaries (collectively referred to as “the Group”), which
comprise the consolidated balance sheets as at March 31, 2024 and 2023, the consolidated statements ofincome and comprehensive income, changes in net assets and cash flows for the years then ended , andnotes, comprising a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2024 and 2023, and its
consolidated financial performance and its consolidated cash flows for the years then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Groupin accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in thecontext of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Appropriateness of the Company’s determination of the accounting period in which operating
revenue from Integrated Logistics Services was recognized

The key audit matter

How the matter was addressed in our audit

Japan Transcity Corporation (hereinafter, the"Company") and its consolidated subsidiaries(collectively referred to as the "Group")
provide various services to customers,

The primary procedures we performed to assess theappropriateness of the accounting period in which
operating revenue from the Integrated Logistics
Services was recognized included the following:including storage of goods, cargo handlingand logistics processing, as well as
stevedoring, domestic transportation andinternational multimodal transportation.
These services are provided to customers as a
package and are called the “Integrated
Logistics Services.” Operating revenue fromthe Integrated Logistics Services amounted
to ¥120,539 million for the year ended March
31, 2024, representing approximately 98.4%
of total operating revenue.
As described in Notes to Consolidated
Financial Statements Note 2(l), “Summary of
Significant Accounting Policies - Accounting
policy for recognition of revenues andexpenses,” revenue from the Integrated
Logistics Services is recognized primarily
over a period of time based on the progress
towards complete satisfaction of the related
performance obligations.
As operating revenue from the Integrated
Logistics Services arises mainly fromtransactions in which the Group stores andtransports goods deposited by customers,
processing those transactions is routine innature and fees are calculated by multiplying
the unit selling prices agreed with customers
by the transaction volume. Further, as journal
entries are basically generated once sales
data is automatically transferred from eachwarehouse/transportation system through thesales management system to the accounting
system, there is little room for discretion
when journal entries related to operating
revenue are generated. Therefore, the risk ofincorrect revenue recognition is deemed to berelatively low.
However, the Company also has a process ofmanually recognizing operating revenue forcertain transactions in which services havebeen rendered but not yet billed to customers
as of the end of an accounting period.
We, therefore, determined that ourassessment of the appropriateness of theaccounting period for operating revenue fromthe Integrated Logistics Services recognizedmanually was of most significance in our(1) Internal control testing
We tested the design and operating effectiveness ofcertain of the Company's internal controls relevant to
the process of recognizing operating revenue from theIntegrated Logistics Services. In this assessment, we
focused our testing on the following controls:
・ Controls where manual journal entries forrecognizing operating revenue are approved by thesuperior in each branch or business unit that hasrecognized the operating revenue and then checkedby the administrative division at the headquarters
independent of the branch and business unit
through comparison with supporting documents.
(2) Assessment of the appropriateness of theaccounting period for manually preparedjournal entries related to operating revenue
The primary procedures to assess the appropriatenessof the accounting period for manually prepared journal
entries related to operating revenue included thefollowing:① compared sales data in the accounting system withthose in the sales management system andevaluated the consistency of the variance between
these two sets of data with the data of manually
prepared journal entries; and② made inquiries about the details of the manually
prepared journal entries related to operating
revenue and assessed whether operating revenue
was recognized accurately in the proper accounting
period by comparing, for a selection of journal
entries that satisfied certain conditions, withinternal documents and external evidence we
individually obtained.

audit of the consolidated financial statements
for the current fiscal year and, accordingly, a
key audit matter.

Other Information
The other information comprises the information included in the Consolidated Financial Statements,
but does not include the consolidated financial statements, the financial statements, and our auditor’sreports thereon.
We do not perform any work on the other information as we determine such information does not exsit.
Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors
for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Corporate auditors and the Board of Corporate Auditors are responsible for overseeing the directors’
performance of their duties with regard to the design, implementation and maintenance of the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with auditing standards generally accepted in Japan
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an
opinion on the effectiveness of the Group’s internal control.



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting
and based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group tocease to continue as a going concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are inaccordance with accounting standards generally accepted in Japan, the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, andwhether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with the corporate auditors and the Board of Corporate Auditors regarding, among
other matters, the planned scope and timing of the audit and, significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the Board of Corporate Auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the corporate auditors and the Board of Corporate Auditors, we
determine those matters that were of most significance in the audit of the consolidated financial
statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Fee-related Information
Fees paid or payable to our firm and to other firms within the same network as our firm for audit andnon-audit services provided to the Company and its subsidiaries for the current year are 57 million yen
and 8 million yen, respectively.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2024 are presented solely for convenience. Our audit also included the translation of
yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis
described in Note 1 of the Notes to Consolidated Financial Statements.

Interest Required to be Disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of
the Certified Public Accountants Act of Japan.

Kuniyoshi Iwata
Designated Engagement Partner
Certified Public Accountant

Masaki Yamada
Designated Engagement Partner
Certified Public Accountant

KPMG AZSA LLC
Nagoya Office, Japan
July 31, 2024

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Balance Sheets
March 31, 2024 and 2023
Millions of yen
2024
2023

Current assets:
Cash and cash equivalents (Note 3)
Short-term investments (Notes 3 and 4)¥

Notes and accounts receivable trade andcontract assets (Note 3 and 13)
Allowance for doubtful accounts
Inventories
Other current assets
Total current assets

Property and equipment:
Land
Buildings and structures (Note 5)
Machinery and equipment
Vehicles and vessels
Construction in progress
Other
Total property and equipment
Less accumulated depreciation
Net property and equipment

Investments and other assets:
Investment securities (Notes 3 and 4)
Investments in unconsolidated subsidiaries andaffiliates (Note 3)
Employee retirement benefit asset (Note 6)
Deferred tax assets (Note 10)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets- 6 -21,508486¥

19,515299

Thousands of
U.S. dollars
2024$

142,437
3,218

18,027(68)
17,959255
3,797
44,00518,718(67)
18,651
206
2,906
41,577

119,384(450)
118,934
1,689
25,145
291,423

35,012
91,52010,750
9,175
587
9,693
156,737(73,262)
83,47532,292
79,064
9,212
8,757
983
9,229
139,537(68,901)
70,636

231,868
606,093
71,192
60,762
3,887
64,192
1,037,994(485,179)
552,815

14,744

9,619

97,642

8,355
6,599
994
2,163
(12)
32,843

8,101
4,125
914
2,206
(12)
24,95355,331
43,702
6,583
14,324(79)
217,503¥ 160,323¥ 137,166$

1,061,741

Current liabilities:
Short-term borrowings (Notes 3 and 5)¥
Current maturities of long-term debt (Notes 3 and 5)
Trade payables (Note 3)
Accrued expenses
Income taxes payable
Other current liabilities (Note 5 and 13)
Total current liabilities
Long-term liabilities:
Bonds Payable
Long-term debt (Notes 3 and 5)
Employee retirement benefit liability (Note 6)
Guarantee deposits received (Note 3)
Deferred tax liabilities for revaluation
Deferred tax liabilities (Note 10)
Other long-term liabilities (Note 5)
Total long-term liabilities
Total liabilities
Commitments and contingent liabilities (Notes 8 and 9)
Net assets (Note 7):
Shareholders’ equity:
Common stock: 240,000,000 shares authorized
and 67,142,417 shares issued
Capital surplus
Retained earnings
Less treasury stock, at cost: 3,597,194 shares in
2024 and 2,897,602 shares in 2023
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized gains on available-for-salesecurities
Land revaluation decrement
Foreign currency translation adjustments
Retirement benefit adjustment (Note 6)
Total accumulated othercomprehensive income
Noncontrolling interests
Total net assets
Total liabilities and net assets

Millions of yen
2024
2023
2,370
2,251
9,654
2,221
359
2,828
19,683

2,458
5,174
10,472
1,947
1,417
3,660
25,128$15,695
14,90763,934
14,7092,377
18,729130,351

8,000
29,092
2,131
2,032
3,695
4,750
1,735
51,435
71,11820,043
2,134
2,075
3,695
2,155
2,194
32,29657,424

52,980
192,662
14,113
13,457
24,47031,457
11,490340,629
470,980

8,428
6,870
63,1958,428
6,823
59,33355,81545,496
418,510(1,643)76,850(1,155)73,429(10,881)508,940

6,726(1,364)
1,356
1,952

3,143
(1,364)822
580

44,543(9,033)
8,980
12,927

8,670
3,685
89,2053,181
3,132
79,742

57,417
24,404
590,761¥ 160,323¥ 137,166

See accompanying Notes to Consolidated Financial Statements.

- 7 -

¥

Thousands of
U.S. dollars
2024$

1,061,741

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Income
For the Years Ended March 31, 2024 and 2023

Operating revenue (Note 13 and 14)¥

Operating costs and expenses(Notes 6 and 9)
Operating income

Millions of yen
2024
2023

Thousands of
U.S. dollars
2024

122,555$¥

134,064

811,622

116,3146,241

126,8147,250

770,291
41,331

495
(134)
(32)
(44)

485
(109)
-

3,278
(887)
(212)
(291)

632

950

4,185

(62)
(326)
249
778
7,019

(56)
430
1,700
8,950

(411)
(2,159)1,649
5,152
46,483

Income taxes (Note 10):
Current
Deferred
Total income taxes

1,698
372
2,070

2,518
(95)
2,423

11,2452,464
13,709Net income

4,949

6,527

32,774

316

372

2,092

Other income (expenses):
Interest and dividend income
Interest expenses
Interest expenses on bonds
Bond issuance costs
Equity in net earnings of unconsolidated
subsidiaries and affiliates
Gain (loss) on sale or disposal of property
and equipment
Impairment loss on fixed assets
Others, net
Income before income taxes

Net income attributable to noncontrollinginterests
Net income attributable to owners of theCompany

Per share:
Net income
Cash dividends (Note 7)

¥

4,633

¥

6,155

$

Yen
¥

72.53
13.0

See accompanying Notes to Consolidated Financial Statements.

- 8 -

¥

30,682
U.S. dollars

95.73
11.5

$

0.48
0.09

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended March 31, 2024 and 2023
Millions of yen
2024
2023
Net income¥

Other comprehensive income (Note 11):
Net unrealized gains on available-for-salesecurities
Foreign currency translation adjustments
Retirement benefit adjustment
Share of other comprehensive income ofunconsolidated subsidiaries and affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the Company
Noncontrolling interests

¥

¥

4,949

6,527

$

32,774

3,599
713
1,371

434
688
29

23,834
4,722
9,080

20
5,703
10,652

28
1,179
7,706

133
37,76970,543

10,123529

See accompanying Notes to Consolidated Financial Statements.

- 9 -

¥

Thousands of
U.S. dollars
2024

¥

¥

7,143
563

$

$

67,0403,503

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Changes in Net Assets
For the Years Ended March 31, 2024 and 2023

Balance at April 1, 2022
Cumulative effects of changes inaccounting policies
Restated balance
Net income attributable to owners of theCompany
Cash dividends
Disposal of treasury stockand fractional shares, net of purchase
Purchase of additional shares of
consolidated subsidiaries
Net changes other than changes inshareholders’ equity
Balance at March 31, 2023
Net income attributable to owners of theCompany
Cash dividends
Change in scope of consolidation
Disposal of treasury stock and fractional
shares, net of purchase
Purchase of additional shares of
consolidated subsidiaries
Net changes other than changes inshareholders’ equity
Balance at March 31, 2024

Shareholders' equity

Number ofshares ofcommonstock issued

Commonstock

67,142,417¥

Capitalsurplus8,428¥

Retainedearnings

6,822¥

Treasurystock

53,884¥(1,119)Total
shareholders’equityNet
unrealized
gains onavailable-forsale securities¥¥

68,015

Accumulated other comprehensive incomeLandrevaluation
decrement
Millions of yen

2,710

¥

(1,364)

Total
accumulated
other

Foreigncurrencytranslation
adjustments

Retirement
benefitadjustment

comprehensive

¥

¥

¥

297

551

Minority
interests

income2,194¥

Total net
assets

2,570¥

72,779

-

8,428

6,822

1
53,885(1,119)1
68,0162,710(1,364)

297

551

2,194

3
2,573

4
72,783

-

-

-

6,155
(707)

-

6,155
(707)

-

-

-

-

-

-

6,155
(707)

-

-

-

-

(36)

(36)

-

-

-

-

-

-

(36)

-

-

1

-

-

1

-

-

-

-

-

-

1

67,142,417

¥

8,428

¥

6,823

¥

59,333¥(1,155)¥73,429

¥

433
3,143

¥

(1,364)

¥

525
822

¥

29
580

¥

987
3,181

¥

559
3,132

¥

1,546
79,742

-

-

-

4,633
(769)
(2)

-

4,633
(769)
(2)

-

-

-

-

-

28

4,633
(769)
26

-

-

40

-

(488)

(448)

-

-

-

-

-

-

(448)

-

-

7

-

-

7

-

-

-

-

-

-

7

67,142,417

¥

8,428

¥

6,870

-

¥

63,195¥(1,643)¥76,850

¥

3,583
6,726

¥

(1,364)

¥

534
1,356

¥

1,372
1,952

¥

5,489
8,670

$

5,444

$

3,841

$ 21,066$ 20,742$ 528,093

¥

525
3,685

¥

6,014
89,205

Thousands of U.S. dollars
Balance at March 31, 2023$
Net income attributable to owners of theCompany
Cash dividends
Change in scope of consolidation
Disposal of treasury stock and fractional
shares, net of purchase
Purchase of additional shares of
consolidated subsidiaries
Net changes other than changes inshareholders’ equity
Balance at March 31, 2024$
See accompanying Notes to Consolidated Financial Statement

55,81545,185$ 392,934--

55,815$$$(7,649)$ 486,285

30,682(5,093)(13)-

30,682(5,093)
(13)

-

-

-

-

-

185

30,682(5,093)
172

265

-

(3,232)(2,967)

-

-

-

-

-

-

(2,967)

46

-

-

46

-

-

-

-

-

-

46

45,496$ 418,510$ (10,881)$ 508,940

23,72944,543$ (9,033)

3,536
8,980

9,086
$ 12,927

36,351$ 57,417

3,477$ 24,404

39,828$ 590,761- 10 -$$

20,814$(9,033)$

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended March 31, 2024 and 2023

Cash flows from operating activities:
Income before income taxes
Adjustments for:
Depreciation
Impairment loss on fixed assets
Net change in employee retirement benefit asset/liability
Gain (loss) on sale or disposal of property and equipment
Equity(income) of unconsolidated subsidiaries and affiliates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Changes in consumption taxes payable/consumption taxes refund receivable
Others, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Millions of yen
2024
2023
¥

7,019

¥

8,950

Thousands of
U.S. dollars
2024$

46,483

5,098
326
(515)
62
(632)
1,180
(48)
(1,282)(1,112)
(635)
9,461
920
(145)
(2,953)
7,283

5,309
(119)
56
(950)
8
(23)
21
(245)
(181)
12,826
1,008(111)(2,127)
11,59633,762
2,159(3,411)411(4,185)7,814(318)(8,490)(7,364)(4.205)62,656
6,093(960)(19,557)
48,232

Cash flows from investing activities:
Increase in property and equipment and intangible assets
Decrease in property and equipment and intangible assets
Decrease (increase) in short-term investments
Others, net
Net cash used in investing activities(18,010)
35
(169)
109
(18,035)(3,526)35
610(85)(2,966)(119,272)
232(1,119)722(119,437)

Cash flows from financing activities:
Increase in long-term debt
Repayment of long-term debt
Net increase (decrease) in short-term borrowings
Proceeds from issuance of bonds
Dividends paid
Decrease (increase) in treasury shares
Others, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year

11,300(5,174)
7,956
(769)
(565)
(544)
12,204527
1,979
19,515
14
21,5085,800(7,894)
88
(707)
(545)
(3,258)406
5,778
13,737
19,51574,835(34,265)
52,689(5,093)(3,742)(3,603)80,821
3,490
13,106129,23893
142,437¥

See accompanying Notes to Consolidated Financial Statements.

- 11 -¥$

Japan Transcity Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
1. Basis of Consolidated Financial Statements
The accompanying consolidated financial statements of Japan Transcity Corporation (the“Company”) and its consolidated subsidiaries (together with the Company, the “Japan Transcity
Group”) have been prepared in accordance with the provisions set forth in the Financial Instrumentand Exchange Law of Japan and its related accounting regulations and in conformity with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects
as to application and disclosure requirements from International Financial Reporting Standards(“IFRS”).
The accompanying consolidated financial statements have been restructured and translated into
English from the consolidated financial statements of the Company prepared in accordance withJapanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as
required by the Financial Instrument and Exchange Law of Japan. Certain supplementary
information included in the statutory Japanese language consolidated financial statements, but notrequired for fair presentation, has not been presented in the accompanying consolidated financial
statements.
Comparative figures have been reclassified to conform to the current year’s presentation.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for theconvenience of readers outside Japan, using the prevailing exchange rate at March 31, 2024, which
was approximately ¥151 to US$1.00. Such translation should not be construed as a representationthat the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
significant subsidiaries. Investments in certain unconsolidated subsidiaries and significant
affiliates are accounted for using the equity method. Investments in unconsolidated subsidiaries
and affiliates not accounted for using the equity method are stated at cost. Differences between theacquisition cost of investments in subsidiaries and the underlying equity in their net assets, adjusted
based on the fair value at the time of acquisition, are principally deferred as goodwill and amortizedover five years or recognized as gain on negative goodwill.
The numbers of consolidated subsidiaries, unconsolidated subsidiaries and affiliates for the years
ended March 31, 2024 and 2023 were as follows.
2024
2023
Consolidated subsidiaries:
Domestic
26
25
Overseas99Unconsolidated subsidiaries and affiliates accounted forusing the equity method
99Unconsolidated subsidiaries stated at cost
8
10
Affiliates stated at cost8
6

- 12 -

All intercompany accounts and transactions have been eliminated on consolidation.
The accompanying consolidated financial statements include the accounts of the overseas
consolidated subsidiaries (nine subsidiaries in 2024 and 2023, respectively). These overseas
consolidated subsidiaries close their books at December 31, which is three months earlier than theclosing of the books of the Company and its domestic consolidated subsidiaries. The Company
consolidated its overseas subsidiaries’ financial statements as of their year-end date. Significant
transactions for the period between the subsidiaries’ year-end date and the Company’s year-end datehave been adjusted on consolidation.
Unification of accounting policies applied to foreign subsidiaries for consolidated financial
statements
The “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” issued by the Accounting Standards Board of Japan (“ASBJ”)(Practical Issues Task Force (“PITF”) No. 18) generally requires that accounting policies andprocedures applied by a parent company and its subsidiaries to similar transactions and events undersimilar circumstances be unified for the preparation of the consolidated financial statements. As atentative measure, however, PITF No. 18 allows a parent company to prepare consolidated financial
statements using foreign subsidiaries’ financial statements prepared in accordance with either
International Financial Reporting Standards or U.S. generally accepted accounting principles(GAAP). In this case, adjustments for the following five items are required in the consolidation
process so that their impact on net income is accounted for in accordance with Japanese GAAP,
unless such impact is immaterial.
(a) Goodwill not subject to amortization(b) Actuarial gains and losses of defined benefit retirement plans recognized outside profit or loss(c) Capitalized expenditures for research and development activities(d) Fair value measurement of investment properties and revaluation of property and equipment andintangible assets(e) Financial Instruments to reclassify amounts equivalent to gains or losses on disposal or losses on
impairment of the equity instruments to profit or loss for the period as a reclassification
adjustment on consolidation.
For the consolidation purposes of the Company, the accounts of the Company’s overseas
consolidated subsidiaries have been prepared in accordance with either International Financial
Reporting Standards or U.S. generally accepted accounting principles, with adjustments having been
made for the five items specified above as needed.
(b) Cash equivalents
The Japan Transcity Group considers highly liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.

- 13 -

(c) Investments and marketable securities
The Japan Transcity Group classifies certain investments in debt and equity securities as “held-tomaturity,” “trading” or “available-for-sale” securities for the purpose of determining the applicableaccounting method as stipulated by the accounting standard for financial instruments. Marketableavailable-for-sale securities with available market quotations are stated at fair value, and net
unrealized gains and losses on these securities, net of applicable income taxes, are reported asaccumulated other comprehensive income. Gains and losses on the disposition of investments insecurities other than equity securities without market prices are computed using the moving averagemethod. Investments in equity securities without market prices and without available market
quotations are carried at cost determined by the moving average method. Adjustments in the carrying
values of individual securities are charged to income through write-downs when a decline in value
is deemed other than temporary.
(d) Accounting for derivatives
Derivatives are valued at fair value if hedge accounting is not appropriate or when there is no hedging
designation, and gains and losses on the derivatives are recognized in current earnings. Under the
special treatment permitted by the accounting standard for financial instruments, hedging interest
rate swaps are accounted for on an accrual basis and recorded net of interest expenses generated
from the hedged borrowings if certain conditions are met.
(e) Inventories
Inventories consist of supplies and others. Inventories are stated at the lower of cost, determinedby the moving average method, or net realizable value.
(f) Allowance for doubtful accounts
An allowance for doubtful accounts is provided for certain doubtful or troubled receivables at theaggregate amount of estimated credit losses based on individual financial reviews. For otherreceivables, a general reserve calculated based on historical loss experience for a certain past period
is provided.
(g) Property and equipment, and depreciation, except for leases
Property and equipment, including significant renewals and additions, are stated at cost anddepreciated using straight-line method over the estimated useful life of the asset. Expenditures onmaintenance and repairs are charged to operating income as incurred. The capital gains directly
offset against the acquisition costs of tangible fixed assets to obtain tax benefits at March 31, 2024
and 2023 were as follows.

Building
Land¥

Millions of yen
2024
2023
100 ¥
100
100
100

Thousands of
U.S. dollars
2024
$
662
662

(h) Accounting for leases
Assets of finance leases that transfer ownership of the leased property to the lessee are depreciatedusing the same method used for nonlease property. Assets of finance leases that do not transfer
ownership of the leased property to the lessee are capitalized and depreciated over the lease termusing the straight-line method with the assumption that the residual value, or guaranteed residual
value when set by agreement, is zero.
- 14 -

(i) Accounting standard for impairment of fixed assets
The Company and its domestic consolidated subsidiaries have adopted the “Accounting Standard
for Impairment of Fixed Assets” issued by the Business Accounting Council of Japan and the related
practical guidance issued by ASBJ. The standard requires that a fixed asset be reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of theasset may not be recoverable. Impairment loss is to be recognized in the income statement by
reducing the carrying amount of the impaired asset or group of assets to the recoverable amount,measured at the higher of net selling price or value in use. Fixed assets include intangible assets aswell as land, buildings and other forms of property and are to be grouped at the lowest level forwhich there are identifiable cash flows separate from those of other groups of assets. For the
purpose of recognition and measurement of impairment loss, fixed assets other than idle or unused
property are grouped principally into cash generating units such as regional business divisions.
While no impairment loss was recorded for the year ended March 31, 2023, the Japan Transcity
Group recognized impairment loss for mainly for the following properties for the year ended March
31, 2024.

Buildings and structures
Other

¥
¥

Millions of yen
2024
2023
68 ¥
258
326 ¥

-

Thousands of
U.S. dollars
2024
$
450
1,709
$
2,159

(j) Revaluation of land
In accordance with the Law Concerning Revaluation of Land (the “Revaluation Law”), the Company
elected a one-time revaluation to restate the cost of land used for the Company’s business at values
rationally reassessed effective March 31, 2002, reflecting adjustments for land shape and otherfactors and based on municipal property tax bases. In accordance with the Revaluation Law, anamount equivalent to the tax effect on the difference between the original book value and thereassessed value was recorded as deferred tax liability under the revaluation account. The
remaining difference, net of the tax effects, was recorded as a land revaluation decrement accountincluded in accumulated other comprehensive income in the accompanying consolidated balance
sheets. At March 31, 2024 and 2023, the differences in the carrying value of land used for theCompany’s business after reassessment over the current market value at the fiscal year-end
amounted to ¥7,643 million ($50,616 thousand) and ¥8,455 million, respectively.

- 15 -

(k) Employee retirement benefits
Employees who terminate their service with the Japan Transcity Group are entitled to retirement
benefits generally determined by current basic rates of pay, length of service and conditions underwhich the termination has occurred.
In accordance with the accounting standard for employee retirement benefits, the Japan Transcity
Group recognizes retirement benefits for employees, including pension costs and related liabilities,
based on the actuarial present value of retirement benefit obligation using the actuarial appraisal
approach and the value of pension plan assets available for benefits at the fiscal year-end. In
calculating retirement benefit obligations, the Company has adopted the benefit formula basis as themethod for attributing the expected retirement benefits to accounting periods. Some consolidated
subsidiaries provide accrued retirement benefits for their employees mainly at the amounts of the
projected benefit obligations calculated using the simplified method as permitted by the accounting
standard for retirement benefits.
Actuarial differences arising from changes in the retirement benefit obligation or pension plan assets
not anticipated under previous assumptions or from changes in the assumptions themselves that are
yet to be recognized are amortized on a straight-line basis over ten years, a period not exceeding the
average remaining service period of employees, from the year following the year in which they arise.
Past service costs that are yet to be recognized are amortized on a straight-line basis over ten years,
a period not exceeding the average remaining service period of the employees, from the year inwhich such costs arise. Actuarial differences and past service costs that are yet to be recognized in
profit or loss have been recognized as retirement benefit adjustment under a component ofaccumulated other comprehensive income within the net assets section, after adjusting for tax effects,
and the difference between retirement benefit obligations and plan assets has been recognized as
employee retirement benefit liability or asset, without any adjustments, in the accompanying
consolidated balance sheets.
(l) Accounting policy for recognition of revenue and expenses
The Japan Transcity Group recognizes revenue in the amount it expects to receive in exchange forpromised goods or services when the control of those goods or services is transferred to customers.
The main performance obligations of integrated logistics services, which is our group's main
business, are storage and transportation services. Revenue from contracts with customers is
recognized primarily over a period of time and according to the progress of the services provided.
(m) Translation of foreign currency accounts
Receivables, payables and securities other than stocks of subsidiaries and certain other securities aretranslated into Japanese yen at year-end exchange rates. Transactions in foreign currencies arerecorded at the prevailing exchange rates on the transaction dates. Resulting translation gains andlosses are included in current earnings.
For financial statement items of overseas consolidated subsidiaries, all asset and liability accounts
are translated into Japanese yen by applying the exchange rates in effect at the fiscal year-end. All
income and expense accounts are translated at the average rates of exchange prevailing during the
fiscal year. Translation differences have been reported as foreign currency translation adjustments
under a component of accumulated other comprehensive income and noncontrolling interests in theaccompanying consolidated balance sheets.

- 16 -

(n) Income taxes
Income taxes are accounted for by the asset-liability method. Deferred tax assets and liabilities arerecognized as future tax consequences attributable to differences between the carrying amounts ofexisting assets and liabilities and their respective tax bases and operating loss carryforwards.
Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply totaxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the
period that includes the enactment date.
(o) Enterprise taxes
The Japan Transcity Group records enterprise taxes based on the “added value” and “capital”
amounts when levied as size based corporate taxes for local government enterprise taxes and includes
such taxes in operating costs and expenses.
(p) Appropriation of retained earnings
Cash dividends are recorded in the fiscal year when a proposed appropriation of retained earnings isapproved by the board of directors and/or shareholders.
(q) Per share data
Net income per share is computed by dividing income available to common shareholders by theweighted average number of shares of common stock outstanding during the fiscal year. Cashdividends per share for each fiscal year in the accompanying consolidated statements of income
represent dividends declared by the Company as applicable to the respective years. Diluted net
income per share was not presented as of March 31, 2024 or 2023 due to the lack of any dilutive
shares.
(r) Change in accounting policy
Amendments to IAS 12
The Japan Transcity Group has adopted the “Deferred Tax related to Assets and Liabilities arisingfrom a Single Transaction (Amendments to IAS 12)” issued on May 7, 2021 from the fiscal year
under review. The adoption of this standard does not have a significant impact on the consolidated
financial statements of the Japan Transcity Group . As the Amendments to IAS 12 have been adopted
retrospectively, the information for the previous fiscal year has been restated.

- 17 -

(s) Accounting standards and guidance not yet adopted
Following accounting standards and guidance are those issued but not yet adopted.
・Accounting Standard for Current Income Taxes (ASBJ Statement No.27, October 28, 2022, ASBJ)
・Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No.25, October28, 2022, ASBJ)
・Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No.28, October28, 2022, ASBJ)① Overview
Transfer of JICPA’s practical guidelines on tax effect accounting to ASBJ was completed with theissuance of standards and guidance including ASBJ Statement No.28, Partial Amendments to
Accounting Standard for Tax Effect Accounting (hereinafter collectively referred to as “ASBJ
Statement No.28, etc.”) in February 2018. During their deliberations, it had been determined that thefollowing two issues would be further discussed subsequent to the issuance of ASBJ Statement No.
28, etc. The above standards and guidance were issued as a result of the discussions on the two issues
below:
・Categories in which income tax expense should be recorded (taxes on other comprehensive
income)・Tax effects associated with sales of shares of subsidiaries, etc. (i.e., shares of subsidiaries oraffiliates) when the group taxation regime is applied② Effective date
The standards and guidance will be effective from the beginning of the fiscal year ending March 31,
2025.
③ Effects of application of the standards and guidance
The effects of application of Accounting Standard for Current Income Taxes, etc. on the consolidated
financial statements are currently under evaluation.
・Accounting and Disclosure Treatment of Corporate Tax, etc. Related to the Global Minimum
Taxation System" (Practical Response Report No. 46, March 22, 2024, Accounting Standards Boardof Japan)① Overview
The standards and guidance were published by the Accounting Standards Board of Japan with theaim of clarifying the accounting and disclosure treatment of corporate and local corporate taxes
related to the global minimum taxation system.
② Effective date
The standards and guidance will be effective from the beginning of the fiscal year ending March 31,
2025.
③ Effects of application of the standards and guidance
The effects of application of Accounting and Disclosure Treatment of Corporate Tax, etc. Related
to the Global Minimum Taxation System on the consolidated financial statements are currently underevaluation.

- 18 -

3.

Fair Values of Financial Instruments(a) Qualitative information on financial instruments① Policies for using financial instruments
The Company limits the use of excess funds to short-term deposits and raises funds throughbank loans and bond issuances. Derivative instruments are used mainly to hedge against
variable interest rate risk and to compensate loss when an earthquake occurs and are notused for speculative purposes.
② Details of financial instruments, risks and risk management system
Trade notes and accounts receivable carry the credit risk of the Company’s trading partners.
To manage such risk and pursuant to internal regulations of the Company, the due dates
and balances of the receivables are managed for each counterparty, and the credit risks of
the Company’s main trading partners are identified every half year.
Although investments in securities are exposed to market price fluctuation risk, theCompany monitors the fair values of the shares of companies with which the Company has
business relationships.
Trade notes and accounts payable are due within one year.
Loans payable and short-term borrowings are used mainly to fund operating activities, andlong-term debt is used to fund capital investment.
Loans with variable interest rates involve the risk of interest rate fluctuation. For hedging
purposes, the Japan Transcity Group is a party to derivative instruments, such as interest
rate swap contracts, in the normal course of business to reduce its exposure to fluctuationsin interest rates. Evaluating hedge effectiveness has not been required because of the
exceptional treatment of interest rate swaps. The Company enters into derivative contracts
with financial institutions of high creditworthiness to reduce credit risk.
Guarantee deposits received consist mainly of deposit money for golf club memberships.
The Japan Transcity Group controls liquidity risk associated with operating payables andloans by its cash management systems, which control the funds of the Japan Transcity
Group as a whole.
③ Supplemental information on fair values
The contract amounts of derivative instruments under Note 3, “Fair Values of Financial
Instruments,” do not necessarily represent the market risk of the derivatives themselves.

- 19 -

(b) Fair values of financial instruments at March 31, 2024 and 2023
Carrying amounts, fair values and differences between carrying amounts and fair values of
relevant items are as follows:
Carrying value
At March 31, 2024:(1) Investment securities:
Marketable securities¥
Total assets¥(1) Bonds payable¥(2) Long-term debt (*3)(3) Guarantee deposits received:
Deposits for golf courses
Total liabilities¥(*2)

Fair value
Millions of yen

14,25014,2508,000
31,343
1,899
41,242Carrying value

At March 31, 2023:(1) Investment securities:
Marketable securities¥
Total assets¥(1) Long-term debt (*3)¥(2) Guarantee deposits received:
Deposits for golf courses
Total liabilities
¥
(*2)

(*2)

$
$
$

Total assets(1) Bonds payable(2) Long-term debt (*3)(3) Guarantee deposits received:
Deposits for golf courses
Total liabilities$¥

14,25014,2507,904
31,1091,458
40,471¥¥¥¥

Fair value
Millions of yen

(96)
(234)
(441)
(771)
Difference

9,052
9,052
25,217

¥
¥
¥

9,052
9,052
25,110

¥
¥
¥

(107)

1,971
27,188¥1,580
26,690

¥

(391)
(498)

Carrying value
At March 31, 2024:(1) Investment securities:
Marketable securities¥¥¥

Difference

94,371
94,371
52,980207,569
12,576273,125

Fair value
Thousands of U.S. dollars

$
$
$

$

94,371
94,371
52,344
206,020
9,655
268,019

Difference

$
$
$

$

(636)
(1,549)(2,921)(5,106)(*1) Deposits and short-term receivables and payables are omitted because their fair values approximate theirbook values.
(*2) At March 31,2024 and 2023, nonmarketable securities (consolidated balance sheet amount: ¥494million($3,271 thousand)) and ¥567 million, respectively, stocks of nonconsolidated subsidiaries and affiliates(consolidated balance sheet amount: ¥8,355million ($55,331 thousand)and ¥8,101 million, respectively)
are not included in "(1) Investment securities: Marketable securities".
(*3) The fair value of Interest-rate swaps under exceptional accounting treatment is included in the fair value ofthe corresponding long-term debt hedged by the derivative transactions.

- 20 -

Note 1. Scheduled redemption amounts after the fiscal year-end date for monetary claims andsecurities with maturity periods:
Due in one
year or less

Cash and cash equivalents ¥Short-term investments
Notes receivable
Trade receivables¥
Total

Due after
Due in one
Due after
one yearyear or lessone year
Millions of yen
2024
2023
¥
¥ 19,515¥
21,508-486
429
16,991
39,414

¥

-

299
388
17,083¥ 37,285¥-

Due in one
Due after
year or lessone yearThousands of U.S. dollars
2024$ 142,437
$
-

3,218
2,841
112,523$ 261,019$(c) Fair value information for financial instruments by level of inputs
Based on the observability and the significance of the inputs used to determine fair values,
fair value information for financial instruments is presented by categorizing measurements
into the following three levels:
Level 1 fair value: fair value measured by quoted prices of identical assets or liabilities in
active markets.
Level 2 fair value: fair value measured using observable inputs other than Level 1.
Level 3 fair value: fair value measured using unobservable inputs.
When multiple inputs from different levels are used in measuring fair value, the Company
and its subsidiaries classify the fair values at the lowest level from which inputs are used.

- 21 --

At March 31, 2024:(1) Investment securities:
Marketable securities
Equity securities¥
Total assets¥(1) Bonds payable(2) Long-term debt(3) Guarantee deposits
received: Deposits
for golf courses
Total liabilities(1) Long-term debt(2) Guarantee deposits
received: Deposits
for golf courses
Total liabilities

Total

14,24014,240

¥
¥

-

¥
¥

-

¥
¥

14,24014,240-¥7,904
31,109

¥

-

¥

7,904
31,109

-

¥

¥

1,458
40,471¥-¥

Fair value
Millions of yen
Level 2
Level 3

Level 1

1,458
40,471

Total

9,042
9,042

¥
¥

-

¥
¥

-

¥
¥

9,042
9,042

¥

-

¥

25,110¥-¥25,110

¥

-

¥

1,580
26,690

¥

-

¥

1,580
26,690At March 31, 2024:(1) Investment securities:
Marketable securities
Equity securities$
Total assets$(1) Bonds payable(2) Long-term debt(3) Guarantee deposits
received: Deposits
for golf courses
Total liabilities

Level 1¥At March 31, 2023:(1) Investment securities:
Marketable securities
Equity securities¥
Total assets¥

Fair value
Millions of yen
Level 2
Level 3$$

Fair value
Thousands of U.S. dollars
Level 2
Level 3

Level 1

Total

94,30594,305

$
$

-

$
$

-

$
$

94,30594,305-$52,344
206,020$-$

52,344
206,020-$- 22 -

9,655
268,019

$

-

$

9,655
268,019

(Note) Valuation techniques and inputs used in measuring fair values
Bonds payable
The total amount of the principal and interest is calculated using the discounted cash flows
method based on the interest rate, with credit risk added, in accordance with the remaining
period of the bonds payable, and is classified as Level 2 fair value.
Long-term debt
The total amount of principal and interest is calculated by the discounted present value
method based on the interest rate, with credit risk added, in accordance with the remaining
period of the debt, and is classified as Level 2 fair value. Long-term loans payable withfloating interest rates are subject to the special treatment of interest rate swaps and are
calculated using the total amount of principal and interest processed together with the interest
rate swaps.
Deposits for golf courses
Deposits for golf courses are calculated using the discounted present value method based on
future cash flows calculated based on an assumed repayment period and interest rates thattake credit risk into account and are classified as Level 2 fair value.
Derivatives① At March 31,2024 and 2023, derivative transactions to which hedge accounting was notapplied comprised a derivative contract related to earthquakes with an outstanding contract
amount of ¥400 million ($2,649 thousand) and ¥400 million, respectively. As the fair value forthe contract was not considered determinable, the contract was not accounted for at fairvalue.
② Derivative transactions to which hedge accounting was applied and for which the contract
amounts or amounts equivalent to the principal set forth in the contracts as of the fiscal
year-end date were as follows.

Contract amount ( *1)¥
Contract amount due after one
year included in (*1)
Fair value

Millions of yen
2024
2023
2,000
¥
2,000
2,000

2,000

Thousands of
U.S. dollars
2024$
13,245
13,245

(*2)
(*2)
(*2)
(*1) Method of hedge accounting applied: exceptional treatment for interest rate swaps
Type of derivative transaction: interest rate swap (fixed rate payment, floating ratereceipt)
Hedged item: long-term debt(*2) The fair value of interest rate swaps accounted for under exceptional accounting treatment isincluded in the fair value of the hedged item because the interest rate swaps are accounted
for as an integral part of the hedged item.

- 23 -

4.

Investments
At March 31, 2024 and 2023, short-term investments consisted of time deposits with an original
maturity of more than three months.
At March 31, 2024 and 2023, investment securities consisted of the following.

Marketable securities:
Equity securities
Other
Other nonmarketable securities

Millions of yen
2024
2023
¥

¥

14,24010
14,250494
14,744¥

Thousands of
U.S. dollars
2024

9,042 $
10
9,052
567
9,619 $¥

94,30566
94,371
3,271
97,642Marketable investment securities classified as available-for-sale securities are stated at fair value
with unrealized gains and losses excluded from current earnings and reported as a net amount within
net assets until realized. At March 31, 2024 and 2023, gross unrealized gains and losses formarketable securities classified as available-for-sale securities were as follows.

Cost
Available-for-sale securities at March 31, 2024:
Equity securities
¥
4,480
Other
8
¥
4,488
Available-for-sale securities at March 31, 2023:
Equity securities
¥
4,435
Other
9
¥
4,444

Cost
Available-for-sale securities at March 31, 2024:
Equity securities$
29,669Other
53$
29,722- 24 -

Gross
Gross
unrealized
unrealized
gains
lossesMillions of yen

Fair andcarrying
value

¥

(53)
(53)

¥ 14,24010¥ 14,250

(105)
(105)

¥

¥
¥
¥

9,813
2
9,815

¥

4,712
1
4,713

¥

¥

¥

¥

9,042
10
9,052

Gross
Gross
unrealized
unrealized
gains
lossesThousands of U.S. dollars

Fair andcarryingvalue$$ 94,305
66$ 94,371$

64,98713
65,000

$
$

(351)
(351)

5.

Short-term Borrowings, Long-term Debt and Collateral
At March 31, 2024 and 2023, short-term borrowings consisted of the following.
Millions of yen
2024
2023

Unsecured short-term bank loans and bankoverdrafts with interest rates ranging from
0.24% to 0.44% per annum at March 31,
2024¥

2,370 ¥

2,458

At March 31, 2024 and 2023, long-term debt consisted of the following.

Less portions with current maturities¥$

15,695

Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
0.51% bonds payable due June 2028
Unsecured long-term loans from banks andother financial institutions due through2031 with interest rates ranging from
0.18% to 2.375% per annum at March 31,
2024

Thousands of
U.S. dollars
2024

8,000

-

52,98031,34339,343(2,251)37,092

25,21725,217(5,174)20,043

207,569
260,549(14,907)245,642¥$

The aggregate amounts of long-term debt due annually at March 31, 2024 were as follows.
Millions ofThousands ofYear ending March 31,
yen
U.S. dollars
2025
2026
2027
2028
2029
2030 and thereafter¥¥

2,251 $
1,939
8,954
6,422
11,8007,977
39,343 $14,907
12,84159,29842,53078,14552,828260,549

At March 31, 2024, aggregate amounts of long-term lease obligations included in other current
liabilities and other long-term liabilities due annually were as follows.
Millions ofThousands ofYear ending March 31,
yen
U.S. dollars
2025
2026
2027
2028
2029
2030 and thereafter¥¥- 25 -

345 $
134
41
13
10
12
555 $

2,285
887
272
86
66
79
3,675

At March 31, 2024 and 2023, the following assets were pledged as collateral for current andnoncurrent payables.
Thousands of
U.S. dollars
Millions of yen
2024
2023
2024
Buildings

¥

4,195

¥

4,452 $

27,781

As is customary in Japan, substantially all loans from banks, including short-term loans, are madeunder general agreements which provide that at the request of the relevant bank the Japan Transcity
Group is required to provide collateral or guarantees or additional collateral or guarantees asappropriate with respect to loans and that all assets pledged as collateral under such agreements will
be used as collateral for all present and future indebtedness to the bank concerned. The Japan
Transcity Group has not received any such request. The general agreements further provide that thebanks have the right, as indebtedness matures or becomes due prematurely by reason of default, tooffset any deposits at the banks against any indebtedness due.

- 26 -

6.

Employee Retirement Benefits
The Company has defined benefit retirement plans. Some of the consolidated subsidiaries havedefined benefit plans to which the simplified method is applied. In addition, some consolidated
subsidiaries have defined contribution pension plans under certain pension funds organized by third
parties.
The following tables reconcile the retirement benefit liability (asset) and retirement benefit costs asof and for the years ended March 31, 2024 and 2023.
Defined benefit plans except those to which the simplified method has been applied:

Movement in retirement benefit obligations:
Balance at beginning of year
Service cost
Interest cost
Actuarial differences
Benefits paid
Other
Balance at end of year

Millions of yen
2024
2023
¥

¥

8,099
408
42
(229)
(464)
(4)
7,852

¥

¥

8,259 $
417
19
(188)
(410)
2
8,099 $

Millions of yen
2024
2023

Movement in plan assets:
Balance at beginning of year
Expected return on plan assets
Actuarial differences
Contributions paid by the employer
Benefits paid
Other
Balance at end of year¥¥

Reconciliation from retirement benefit
obligations and plan assets to liability (asset)
for retirement benefits:
Funded retirement benefit obligations
Plan assets
Adjustment by asset ceiling
Unfunded retirement benefit obligations
Total net liability (asset) for employee
retirement benefits at end of year
Employee retirement benefit liability
Employee retirement benefit asset
Total net liability (asset) for retirement
benefits at end of year

- 27 -

11,113
224
1,893
550
(416)
2
13,366

¥

¥

¥

¥

6,775
(13,366)(6,591)
17
1,077

¥

(5,497)(5,497)73,596
1,484
12,536
3,643(2,755)
13
88,517

Thousands of
U.S. dollars
2024¥

7,006 $
(11,113)(4,107) $7
1,093

44,868(88,517)(43,649)
113
7,132

¥

(3,007) $(36,404)

1,094(4,101)

7,139(43,543)(3,007) $(36,404)

1,078(6,575)¥53,6362,702
278(1,517)(3,073)(26)
52,000Thousands of
U.S. dollars
2024

11,092 $
223
(4)
158
(356)
11,113 $Millions of yen
2024
2023

¥

Thousands of
U.S. dollars
2024¥

Retirement benefit costs:
Service cost
Interest cost
Expected return on plan assets
Actuarial differences amortization
Past service costs amortization
Total retirement benefit costs for the year

Retirement benefit adjustment, before taxes,
included in other comprehensive income:Actuarial differences
Total balance at end of year

Retirement benefit adjustment, before taxes,
included in accumulated other comprehensive
income:Actuarial differences that are yet to berecognized
Total balance at end of year
Plan assets:(1) Plan assets:
Bonds
Equity securities
General accountCommingled funds
Other
Total

Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
¥

¥

408
42
(224)
(147)
(5)
74

¥

¥

417 $
19
(223)
(134)
(1)
78 $

Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
¥
¥

1,966
1,966

¥
¥

43
43

Millions of yen
2024
2023

¥
¥

(2,797)(2,797)

¥
¥

2,702
278
(1,484)
(973)
(33)
490

$
$

13,02013,020Thousands of
U.S. dollars
2024(831) $
(831) $

(18,523)(18,523)

2024

2023

19%
43%
3%
19%
16%
100%

23%
37%
3%
21%
16%
100%

At March 31, 2024 and 2023, assets under the retirement benefit trust set up for corporate
pension plans accounted for 35% and 31% of the total plan assets, respectively.
Commingled funds consisted of bonds (60%) and equity securities (40%) at March 31, 2024
and consisted of bonds (62%) and equity securities (38%) at March 31, 2023.
(2) Long-term expected rate of return:Current and target asset allocations and historical and expected returns on various categories ofplan assets have been considered in determining the long-term expected rate of return.
Principal actuarial assumptions at March 31, 2024 and 2023 expressed as weighted averages.
2024
2023
Discount rate
0.8%
0.5%
Long-term expected rate of return
2.0%
2.0%
- 28 -

Defined benefit plans to which the simplified method has been applied:

Movement in liability for retirement benefits:
Balance at beginning of year
Retirement benefit costs
Benefits paid
Contributions paid by the employer
Other
Balance at end of year

Reconciliation from retirement benefit
obligations and plan assets to liability (asset)
for retirement benefits:
Funded retirement benefit obligations
Plan assets
Unfunded retirement benefit obligations
Total net liability (asset) for employee
retirement benefits at end of year
Employee retirement benefit liability
Employee retirement benefit asset
Total net liability (asset) for retirement
benefit at end of year

Millions of yen
2024
2023
¥

¥

1,016
205
(91)
(104)
3
1,029

¥

¥

1,000 $
225
(108)
(103)
2
1,016 $

Millions of yen
2024
2023

¥
¥
¥

2,451
(1,685)
766
263

¥

1,029

¥

¥

1,053
(24)
¥

1,029

Thousands of
U.S. dollars
2024

Thousands of
U.S. dollars
2024

2,409 $
(1,644)765 $
251

16,232(11,159)
5,073
1,742

1,016

6,815

$

1,040
(24)
¥

6,729
1,358
(603)
(689)
20
6,815

1,016

6,974
(159)
$

6,815

Total retirement benefit costs for the fiscal years ended March 31, 2024 and 2023 based on thesimplified method were as follows:
Thousands ofMillions of yen
U.S. dollars
2024
2023
2024
¥
205
¥
225 $
1,358
Defined contribution plan:
For the years ended March 31, 2024 and 2023, the required contribution of the consolidated
subsidiaries to the defined contribution plan amounted to ¥50 million ($331 thousand) and ¥44
million, respectively.
7.

Net Assets
Under Japanese laws and regulations, the entire amount paid for new shares is required to be
designated as common stock. However, a company may, by a resolution of the board of directors,
designate an amount not exceeding one-half of the price of the new shares as additional paid-in
capital, which is included in capital surplus.
Under the Corporate Law, in cases in which a dividend distribution of surplus is made, the smallerof the amount equal to 10% of the dividend or the excess, if any, of 25% of common stock over the
total of additional paid-in capital and legal earnings reserve must be set aside as additional paid-in- 29 -

capital or legal earnings reserve. The legal earnings reserve has been included in retained earnings
in the accompanying consolidated balance sheets.
Under the Corporate Law, the legal earnings reserve and additional paid-in capital can be used toeliminate or reduce a deficit by a resolution at the shareholders’ meeting. The additional paid-in
capital or legal earnings reserve may not be distributed as dividends. All additional paid-in-capitaland legal earnings reserve may be transferred to other capital surplus and retained earnings,
respectively, which may become available for distribution as dividends.
At both March 31, 2024 and 2023, capital surplus principally consisted of additional paid-in capital.
In addition, retained earnings included the legal earnings reserve of the Company in the amount of¥1,200 million ($7,947 thousand) at both March 31, 2024 and 2023.
The maximum amount that the Company can distribute as dividends is calculated based on thenonconsolidated financial statements of the Company in accordance with Japanese laws andregulations.
During the year ended March 31, 2024, the Company paid interim dividends of ¥6.0 per shareamounting to ¥384 million ($2,543 thousand). In addition, at the annual shareholders’ meeting
held on June 27, 2024, the shareholders approved cash dividends of ¥7.0 per share amounting to¥445 million ($2,947 thousand). These appropriations had not been accrued in the consolidated
financial statements as of March 31, 2024 as such appropriations are recognized in the period inwhich they are approved by the shareholders.
8.

Contingent Liabilities
At March 31, 2024 and 2023, the Japan Transcity Group was contingently liable for reserved
guarantees of indebtedness of a certain unconsolidated subsidiary in the amount of ¥11 million ($73
thousand) and ¥38 million, respectively.

9.

Lease Commitments
As lessee the Japan Transcity Group leases land and buildings to be used for office spaces andwarehouses principally under long-term cancelable and noncancelable operating lease agreements.
The Japan Transcity Group also leases computer equipment, other equipment and vehicles underleases which are generally noncancelable.
The aggregate future minimum payments for noncancelable operating leases at March 31, 2024 and2023 were as follows.

Operating leases:
Due within one year
Due after one year

Millions of yen
2024
2023
¥
¥

1,812
2,344
4,156

¥
¥

1,617
2,010
3,627

Thousands of
U.S. dollars
2024
$
$

12,00015,52327,523The company has applied “Leases” (IFRS 16 and ASC 842), assets and liabilities recorded on thebalance sheet for which the "Lease" has been applied are not included.

- 30 -

10. Income Taxes
The tax effects of temporary differences that gave rise to a significant portion of deferred tax assets
and liabilities at March 31, 2024 and 2023 were as follows.
Thousands ofMillions of yen
U.S. dollars
2024
2023
2024
Deferred tax assets:
Enterprise tax accruals
¥
39 ¥
78 $
258
Accrued bonuses to employees
396
379
2,623
Employee retirement benefit liability
343
340
2,272
Intercompany capital gains
280
251
1,854
Tax loss carryforwads (Note 1)
103
58
682
Impairment loss on fixed assets
106
702
Asset retirement obligations
214
251
1,417
Others
623
534
4,126
Subtotal
2,104
1,891
13,934
Valuation allowance for tax loss carryforwards(Note 1)
(103)
(58)
(682)
Valuation allowance for deductible temporary
differences
(185)
(92)
(1,225)Less valuation allowance
(288)
(150)
(1,907)
Deferred tax assets
1,816
1,741
12,027
Deferred tax liabilities:
Employee retirement benefit asset
Deferred capital gain
Unrealized gains on available-for-salesecurities
OthersDeferred tax liabilities
Net deferred tax liabilities¥(1,050)
(524)

(185)
(524)

(6,954)(3,470)(2,964)(1,034)(5,572)(3,756)(1,407)(867)(2,983)(1,242)(19,629)(6,848)(36,901)(24,874)¥$(Note 1) Details of deferred tax assets for tax loss carryforwards by respective expiration periods
at March 31, 2024 and 2023 were as follows:

For the year ended March 31,
2024:
Tax loss carryforwards (*1)
Valuation allowance
Net deferred tax assets

2025

-

2026

2027

¥1
(1)
-

¥2
(2)
-

2029

2030 and
thereafter

Millions of yen
¥17
¥18
(17)
(18)
-

¥65
(65)
-

2028

Total

¥103
(103)
-

Thousands of U.S. dollars
Tax loss carryforwards (*1)
$7
$13
$113
$119
$430
$682
Valuation allowance
(7)
(13)
(113)
(119)
(430)
(682)
Net deferred tax assets(*1) Tax loss carryforwards shown in the table above represent the amount of deferred tax assets after
multiplying the statutory tax rate.

- 31 -

For the year ended March 31,
2023:

2024

2025

2026

2027

2028

2029 and
thereafter

Total

Millions of yen
Tax loss carryforwards (*2)
¥1
¥3
¥17
¥37
¥58
Valuation allowance
(1)
(3)
(17)
(37)
(58)
Net deferred tax assets(*2) Tax loss carryforwards shown in the table above represent the amount of deferred tax assets after
multiplying the statutory tax rate.

In assessing the realizability of deferred tax assets, management of the Japan Transcity Groupconsiders whether part or all of the deferred tax assets will be realized. The ultimate realization ofdeferred tax assets is dependent upon the generation of future taxable income during the periods inwhich those temporary differences become deductible. At March 31, 2024 and 2023, a valuation
reserve was provided to reduce the deferred tax assets to amounts management believed would be
realizable.
Reconciliation of the difference between the Japanese statutory tax rate and the effective income tax
rate on pretax income reflected in the accompanying consolidated statements of income for the year
ended March 31, 2023 were as follows.
Japanese statutory tax rate
Increase (decrease) due to:Permanently nondeductible expenses
Tax exempt income
Local minimum taxes per capita levy
Effect of elimination of dividend income
from subsidiaries for consolidation purpose
Equity in net earnings of unconsolidated
subsidiaries and affiliates
Valuation allowance
Retained earnings of subsidiaries
Tax rate differences with foreignsubsidiaries
Others
Effective income tax rate

- 32 -

2024
30.2%

2023
30.2%

-

1.0
(2.1)
0.4

-

1.8
(3.2)
(0.2)
1.0
(1.7)
(0.2)
27.0%

11. Comprehensive Income
The amounts reclassified to profit (loss) in the current period that were recognized in othercomprehensive income in the current or previous periods and the tax effects for each component ofother comprehensive income for the years ended March 31, 2024 and 2023 were as follows.

Net unrealized gains on available-for-sale securities:
Increase during the year¥
Reclassification adjustments to profit or loss
Subtotal, before tax
Tax expense
Subtotal, net of tax
Foreign currency translation adjustments:
Increase during the year
Retirement benefit adjustment:
Increase during the year
Reclassification adjustments to profit or loss
Subtotal, before tax
Tax expense
Subtotal, net of tax
Share of other comprehensive income ofunconsolidated subsidiaries and affiliates
accounted for using equity method:
Increase during the year
Total other comprehensive income¥

Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
5,206
(51)
5,155
(1,556)
3,599

633 $
(9)
624
(190)
434

34,477(338)
34,139(10,305)
23,834

713

688

4,722

2,113
(147)
1,966
(595)
1,371

177
(134)
43
(14)
29

13,993(973)
13,020(3,940)
9,080

20
5,703

¥

¥

28
1,179

$

133
37,76912. Related Party Transactions
There were related party transactions in connection with TAIYU KENSETSU CO., LTD. The
transaction prices were determined by negotiation based on estimated amounts of transactions
with other companies. At March 31, 2024 and 2023, related party transactions were as follows.
Millions of yen
2024
2023
Officers of the Company and their relatives(Equipment renovation work)
Transaction amounts
Balance at end of period

¥
¥

43
10

¥
¥

There were no material affiliates for the year ended March 31,2024 and 2023.

- 33 -

Thousands of
U.S. dollars
2024

35 $
- $

285
66

13. Revenue Recognition(a) Revenue from contracts with customers
Integrated Logistics Services
International

At March 31, 2024:
Revenue from contracts with customers
Other revenue
Revenue to external customers

Domestic

multimodal

Warehousing

Stevedoringtransportationtransportation

¥

¥

¥

¥

¥

48,44648,446¥

21,245
21,245¥18,366
18,366

Others

Sub total

Millions of yen¥

30,81130,811¥¥¥ 120,539

1,671
1,671

¥ 120,539

Other services

¥
¥

1,090
926
2,016

Total

¥
¥

121,629926
122,555

Integrated Logistics Services
International

At March 31, 2023:
Revenue from contracts with customers
Other revenue
Revenue to external customers

Domestic

multimodal

Warehousing

Stevedoringtransportationtransportation

¥

¥

¥

¥

¥

43,67043,670¥22,68822,688¥18,245
18,245

Others

Sub total

Millions of yen¥

45,78145,781¥¥¥ 132,134

1,750
1,750

¥ 132,134

Other services

¥
¥

1,055
875
1,930

Total

¥
¥

133,189875
134,064

Integrated Logistics Services
International

At March 31, 2024:
Revenue from contracts with customers
Other revenue
Revenue to external customers

Domestic

multimodal

Warehousing

Stevedoringtransportationtransportation$$ 140,695$ 121,629$ 204,046$

320,835
320,835$ 140,695$ 121,629

OthersThousands of U.S. dollars$ 204,046$$

11,066
11,066

Sub total$ 798,271$ 798,271- 34 -

Other services

$
$

7,219
6,132
13,351

Total$$

805,490
6,132
811,622(b) Basic information for understanding revenue from contracts with customers
The Japan Transcity Group provides mainly integrated logistics services, including
warehousing, stevedoring, domestic transportation and international multimodaltransportation. The details of these main performance obligations and the timing of revenue
recognition are as follows.
① Warehousing
In the warehousing business, goods deposited by customers are stored in warehouses andstorage fees are received as compensation. In addition, the Japan Transcity Group carries
out warehousing, delivery and value-added services of deposited goods in connection with
its storage operations and receives cargo handling charges, delivery charges and valueadded service charges as compensation.
With respect to storage operations, revenue is recognized over the period of time fromwhen the contract is concluded to the satisfaction of the performance obligations andtransfer of services to the customer.
With respect to performance obligations related to operations other than storage operations,
if the contract provides for the provision of services over a certain period of time, revenue
is recognized in accordance with the period over which the service is provided. If thecontract provides for service compensation in accordance with the amount of goods,
revenue is recognized in accordance with the amount of goods in accordance with theprogress of the provision of services② Stevedoring
The stevedoring business connects marine transportation and land transportation at ports
and harbors. In the Japan Transcity Group, we conduct cargo loading and unloading
operations and cargo handling operations that require licenses from the Ministry of Land,
Infrastructure, Transport and Tourism, as well as related businesses.
These operations represent performance obligations related to work involving the
movement of customers' goods into and out of Japan, and revenue is recognized inproportion to the volume of work handled under contracts to transfer services to customers
as work progresses.
③ Domestic transportation and international multimodal transportation
In the domestic transportation business, vehicles and railways are used to transport goods
in Japan. In addition, in the international multimodal transport business, import and export
cargo is transported from the designated place of the consignor to the designated place ofthe consignee using the most appropriate means of transportation with the responsibility
maintained throughout the transportation.
Revenue is recognized over a period of time as under contracts to transfer services to acustomer as the performance obligations are satisfied, and the method of estimating the rateof progress in satisfying the performance obligations is based mainly on the estimatednumber of days of transportation. Revenue is recognized at a certain point in time forshipments for which the period from the start of service provision to the fulfillment of theperformance obligations is significantly short.
The transaction price is measured in terms of the amount expected to be received in exchange forthe promised goods or services when control of those goods or services is transferred to thecustomer. Consideration for the transaction is received within one year of the fulfillment of theperformance obligations and does not include significant financial factors. The Japan Transcity
Group does not have contracts that require the allocation of transaction prices because it determines
prices by providing customers with estimates corresponding to each performance obligation.

- 35 -

(c) Balance of contract assets and contract liabilities
At April 1, 2022:
Trade receivables fromcontracts with customers
Contract assets
Contract liabilities
At March 31, 2023:
Trade receivables fromcontracts with customers
Contract assets
Contract liabilities

At April 1, 2023:
Trade receivables fromcontracts with customers
Contract assets
Contract liabilities
At March 31, 2024:
Trade receivables fromcontracts with customers
Contract assets
Contract liabilities

Millions of yen¥

16,910
1,216
627

¥

17,471
1,247
639
Thousands of
U.S. dollars

Millions of yen¥

17,471
1,247
639

$

131,361
9,376
4,805

¥

17,420607
435$

115,364
4,020
2,881

In the Japan Transcity Group, there were no significant transactions with an initial contract periodof more than one year.

- 36 -

14.

Segment Information
1. General information about reportable segments
The reportable segments are constituent business units of the Japan Transcity Group for which separate financial information is obtained and examined regularly by the Board of Directors to evaluate business performance.
The Japan Transcity Group provides mainly integrated logistics services that consist of warehousing, stevedoring, domestic transportation and international multimodal transportation. Therefore, the Japan Transcity Group’sreported segment is “Integrated Logistics Services.”
2. Basis of measurement about reported segment profit, segment assets and other material items
The accounting for the segment is presented on an operating income basis. Intersegment operating revenues or transfer amounts are based on market price.
3. Information about reportable segment profit, segment assets and other material items
Information by segment as of and for the years ended March 31, 2024 and 2023 is as follows.
Integrated
Logistics Services
For the year ended March 31, 2024:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating income
Identifiable assets
Depreciation
Investments in unconsolidated subsidiaries andaffiliates accounted for using the equity
methodImpairment loss on fixed assets
Capital expenditures
For the year ended March 31, 2023:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating income
Identifiable assets
Depreciation
Investments in unconsolidated subsidiaries andaffiliates accounted for using the equity
methodCapital expenditures

¥
¥
¥

Other
Services

120,539
1
120,540
5,681¥

155,013
4,952

¥

¥

8,065
273
17,575

¥
¥
¥

2,016
3,036
5,052
682

¥

9,132
146

¥

¥

68
717

132,134
132,134
6,698¥

133,439
5,227

¥

7,839
5,073

Total
Millions of yen¥

Consolidated

122,555
3,037
125,592
6,363¥(3,037)(3,037)(122)¥

164,145
5,098¥(3,822)
-

¥

¥

8,065
341
18,292

1,930
1,383
3,313
591

¥

8,660
82

¥

416

Adjustment

¥

(15)
-

134,064
1,383
135,447
7,289¥

142,099
5,309

¥

7,839
5,489

- 37 -¥¥

160,323
5,098
8,065
326
18,292(1,383)(1,383)(39)¥(4,934)-¥-

122,555
122,555
6,241¥

134,064
134,064
7,250
137,165
5,309
7,839
5,489

Integrated
Logistics Services
For the year ended March 31, 2024:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating income$

798,2717
798,278
37,622$

1,026,575
32,795$$

Identifiable assets
Depreciation
Investments in unconsolidated subsidiaries andaffiliates accounted for using the equity
methodImpairment loss on fixed assets
Capital expenditures

$

Other
Services
Total
Thousands of U.S. dollars$

13,351
20,10633,457
4,517$

60,477967$

53,411
1,808
116,391

Warehousing
Operating revenue to external customers:
For the year ended March 31, 2024
For the year ended March 31, 2023
Operating revenue to external customers:
For the year ended March 31, 2024¥

48,446
43,670811,622
20,113
831,735
42,139$1,087,052
33,762

$

$

450
4,748

(Related information)
1. Information about products and services of “Integrated Logistic Services”

Adjustment$

Stevedoring¥¥

21,24522,688- $(20,113)(20,113)(808) $

811,622811,622
41,331(25,311) $-1,061,741
33,762(99)-

53,411
2,159
121,139

OthersTotal

53,411
2,258
121,139

International
Domestic
multimodaltransportation transportation
Millions of yen
18,366 ¥18,24530,81145,781

Consolidated

¥

1,671
1,750

¥

120,539
132,134$

11,066$798,271

Thousands of U.S. dollars$

320,835$

140,695$

121,629$

204,046

2. Information about geographic areas(1) Operating revenue
For the year ended March 31, 2024 and 2023, operating revenue by geographic area is as follows.
Japan
For the year ended March 31, 2024:
Operating revenue
For the year ended March 31, 2023:
Operating revenue

For the year ended March 31, 2024:
Operating revenue¥

America
Millions of yen

Other

Total

99,861 ¥15,484 ¥

7,210 ¥

122,555

102,308

22,061

9,695

134,064

47,748 $811,622

Thousands of U.S. dollars$

661,331 $102,543 $(2) Property and equipment
Both at March 31, 2024 and 2023, the Company omitted the disclosure of property and equipment because property and equipment in Japan accounted for more than 90% of the amounts of property and equipment reported
in the consolidated balance sheets.

- 38 -

3. Information about major customers
At March 31 2023, the Company omitted the disclosure of information about major customers because no customer contributed 10% or more to operating revenue in the consolidated statements of income. The information
about major customers as of March 31, 2024 were as follows.

For the year ended March 31, 2024:
Sumitomo wiring systems, Ltd.

For the year ended March 31, 2024:
Sumitomo wiring systems, Ltd.

Operatingrevenue
Millions of yen¥

13,501
Operatingrevenue
Thousands of
U.S. dollars$

89,411

Segment
Integrated Logistics Services
Segment

Integrated Logistics Services- 39 -

15. Subsequent Events
Repurchase of treasury stock
On May 13, 2024, the Board of Directors of the Company resolved to repurchase its own shares pursuant to
Article 156 of the Companies Act of Japan, applied pursuant to Article 165, Paragraph 3 of the Companies Act.
Overview(a) Reasons to share repurchase
To enhance shareholder’s return and to optimize capital structure(b) Type of shares to be repurchased
Common stock(c) Total number of shares to be repurchased
Up to 1,600,000 shares(d) Total repurchase amountUp to 1,000 million yen (6,622 thousand U.S. dollars)(e) Repurchase period
July 1, 2024 to March 31, 2025

- 40 -

16. Condensed Financial Statements of Japan Transcity Corporation (Parent)
Presented below are the condensed Nonconsolidated Balance Sheets, Nonconsolidated Statements ofincome and Changes in Net Assets of Japan Transcity Corporation, the parent company.
Nonconsolidated Balance Sheets (Unaudited)Japan Transcity Corporation (Parent)

Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
Current assets:
Cash and cash equivalents
Short-term investments
Trade receivables, net of allowance for
doubtful accounts
Inventories
Other current assets
Total current assets
Property and equipment, at costLess accumulated depreciation
Net property and equipment
Investments and other assets:
Investment securities
Investments in and long-term loans to
subsidiaries and affiliates
Prepaid pension cost
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets¥¥- 41 -

13,632¥

13,3435

71

90,27833

15,88358
3,374
32,952
121,630(51,950)
69,68015,18592
2,907
31,598105,281(49,177)
56,104105,186384
22,344
218,225805,497(344,040)
461,457

13,544

8,706

89,695

4,530
3,827
1,907

4,560
3,283
1,944

(6)
23,802
126,434(6)
18,487106,189

30,00025,345
12,629(40)
157,629
837,311¥$$

Thousands of
U.S. dollars

Millions of yen
2024
Current liabilities:
Short-term borrowings
Current maturities of long-term debt
Trade payables
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
Long-term liabilities:
Bonds payable
Long-term debt
Employee retirement benefit liability
Deferred tax liabilities for revaluation
Deferred tax liabilities
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities¥¥

13,368
4,899
6,670
930
1,224
1,995

2024

25,05429,08690,95413,08645,576
6,543
676
9,086
165,9218,000
25,479
1,139
3,695
3,170
597
244
42,32467,37816,155
1,108
3,695
1,348
778
203
23,28752,37352,980168,735
7,543
24,47020,993
3,954
1,616
280,291446,212

8,428
6,834
40,466(1,643)54,085

8,428
6,794
38,150(1,155)52,21755,81545,258267,986(10,881)358,178

Net unrealized gains on available-for-salesecurities

6,335

2,963

41,954

Land revaluation decrement(1,364)(1,364)(9,033)

4,971
59,056
126,434

1,599
53,816106,189

32,921
391,099
837,311

Net assets:
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders' equity

13,734
1,976
6,882
988
102
1,372

2023

$

Accumulated gains (losses) from valuation
adjustment:

Total accumulated gains from valuation
adjustment
Total net assets
Total liabilities and net assets¥- 42 -¥$

Nonconsolidated Statements of Income (Unaudited)Japan Transcity Corporation (Parent)
For the Years Ended March 31, 2024 and 2023

Operating revenue¥

Operating costs and expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expenses
Interest expenses on bonds
Bond issuance costs
Gain (loss) on sale or disposal of property andequipment
Impairment loss on fixed assets
Others, net
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net income¥

Millions of yen
2024
2023

Thousands of
U.S. dollars
2024

96,892$¥

107,60293,083
3,809

102,9634,639

616,444
25,225

897
(166)
(32)
(44)

1,016
(105)
-

5,941
(1,099)
(212)
(292)

(38)
(274)
284
627
4,436

(51)
383
1,243
5,882

(252)
(1,815)
1,881
4,152
29,377

988
363
1,351

1,823
(155)
1,668

6,543
2,404
8,947

3,085

¥

4,214

Yen

Per share:
Net income
Cash dividends¥- 43 -

641,669

48.30
13.00

¥

$

20,430U.S. dollars
65.53
11.50

$

0.32
0.09

Nonconsolidated Statements of Changes in Net Assets (Unaudited)Japan Transcity Corporation (Parent)
For the Years Ended March 31, 2024 and 2023
Shareholders’ equity

Common stock
Balance at April 1, 2022
Net income for the year
Cash dividends
Disposal of treasury stock and fractional shares, net ofpurchase
Net changes other than shareholders’ equity
Balance at March 31, 2023
Net income for the year
Cash dividends
Disposal of treasury stock and fractional shares, net ofpurchase
Net changes other than changes in shareholders’ equity
Balance at March 31, 2024

¥

¥

¥

8,428
8,428
8,428

¥

¥

¥

6,794
6,794
40
6,834

Total
shareholders’
Treasury stock
equityMillions of yen

Retainedearnings

Capital surplus¥¥¥

34,643
4,214(707)
38,1503,085(769)
40,466

Accumulated gains (losses) from valuation adjustment
Total
Net unrealized
accumulated
gains ongains fromLand
available-forvaluation
revaluation
sale securities
decrement
adjustment

¥

¥

¥

(1,119)(36)(1,155)(488)(1,643)¥¥¥48,746
4,214
(707)
(36)
52,217
3,085
(769)
(448)
54,085

¥

¥

¥

2,545
418
2,963
3,372
6,335

¥

¥

¥

(1,364)(1,364)(1,364)

¥

¥

¥

1,181
418
1,599
3,372
4,971

Total
net assets¥¥¥

49,927
4,214
(707)
(36)
418
53,816
3,085
(769)
(448)
3,372
59,056

Thousands of U.S. dollars
Balance at March 31, 2023
Net income for the year
Cash dividends
Disposal of treasury stock and fractional shares, net ofpurchase
Net changes other than changes in shareholders’ equity
Balance at March 31, 2024$$

55,81555,815$$44,993265
45,258$$

252,649
20,430(5,093)267,986$$- 44 -(7,649)(3,232)(10,881)$$345,808
20,430(5,093)(2,967)358,178$$

19,623
22,331
41,954$$(9,033)(9,033)$$

10,59022,331
32,921$$

356,398
20,430(5,093)(2,967)
22,331
391,099