Annual Report 2021
Year Ended March 31,2021

Profile

Seino
Co.,Co.,Ltd. Ltd.
(“the (“theCompany”)
began businessSeinoHoldings
Holdings
Company”)
beganas atrucking
company
in 1930 and
was incorporated
in 1946.Basedinbusiness
as a trucking
company
in 1930 andwasincorporated
in
1946.
Based
in
the
city
of
Ogaki,
Gifu
the city of Ogaki, Gifu Prefecture, we are a leading trucking
Prefecture,
we areinastep
leading
trucking
expandingcompany,
expandingwith thegrowthcompany,of the Japanese
in
step
with
the
growthoftheJapanese
economyand theeconomy and the development of the nation’s extensive expressway
development of the nation’s extensive expressway network.
network.
OnOnOctober
1, 2005, the Company transferred its
October 1, 2005, the Company transferred its transportationtransportation business and other operations to a new
business and other operations to a new company—which has taken thecompany—which has taken the original name Seino
original name Seino Transportation Co., Ltd —and was renamed Seino
Transportation Co., Ltd.—and was renamed Seino
Holdings Co.,Ltd
adopting
holdingcompanystructure.
structure.
Holdings
Co.,Ltd.
a purea pureholdingcompany
The Seino Group currently consists of the pure holding company
Seino
Holdings,
consolidated
and 21affiliates engaged
company
Seino82Holdings,
58subsidiaries
consolidated
subsidiaries
and 14intransportation
services,
vehiclesales,
merchandise
sales,
leasingforaffiliates engaged in transportation services, vehicle sales, realestateservices andotherservices.
merchandise
sales,
leasingfor real estate services and otherservices.
In its mainstay Transportation Services business, the Company has
In steps
its mainstay
Transportation
Servicesbusiness,thethe whiletaken
to build evenmore convenientlogistics
systems, allCompanytaken steps toprinciple.
build even more convenientadhering to has
its “customer-first”
logistics
systems,
theSeino
while
adhering
its “customer-first”
As of March
31, all2021,
offersefficienttotransportation
servicesprinciple.
As
of
March
31,
2011,
Seino
offersefficientthroughout Japan via its 724 domestic terminals, a fleet of 24,997 trucks
transportation services throughout Japan via its 634 domestic
and a trucking network that averages 4,000 routes daily.
terminals, a fleet of 24,321 trucks and a trucking network that
In recent years, we have striven to increase employee satisfaction by
averages 5,000 routes daily. Overseas, Seino has transferred its
conducting
renovationsof ouroperations
business locations
in order to improve
international
forwarding
to Schenker-Seino
Co.,workingenvironments.
Ltd.,a joint
venture established with Schenker AG in
We also have two new facilities: Seino Transportation Co., Ltd. has
opened the FukagawaCompany
Branch (inaims
Koto,toTokyo),
anditsSeino Super Express
bolsterCo., Ltd. has openedcompetitivenessthe Yamagata SalesbyOffice(in Yamagata,
Yamagata
optimizing
the synergies
of Seino’s domestic transportation network
Prefecture).
Schenker’s
global networkand that
The Seino Groupandis committed
to providing
rapid services
cutting-edge
IT willsystems.
deliver total customer
satisfaction andproceed down the “Road to
Success” to become a highly profitableproviding rapid
services that deliver totalcompany through initiatives to develop
customer satisfaction and will proceed down
a progressive business model that will
the “Road to Success” to become a highly
become the standard forprofitable company through initiatives tonext-generationtransportation
develop a progressive
businessmodel thatwill becomebusiness.
the standard forContents
Contents
Financial Highlights
Financial
Highlights

11

To Our Shareholders,Shareholders,Customers
CustomersandandFriends
Friends

22

Special FeatureSpecialFeature44

Review ofReviewof Operations
Operations

66

Financial Review
Financial
Review

88

Six-year Summary
Six-year
Summary

99

Consolidated Balance
Consolidated
BalanceSheets
Sheets1010Consolidated Statements
Consolidated
StatementsofofIncome
Income111112Consolidated Statementsof Comprehensive
Income(Loss) 12
Consolidated
Statementsof Comprehensive
Income12Consolidated Statements
Consolidated
Statements ofofChanges
ChangesininNet
NetAssets
Assets 12
Consolidated Statements
Consolidated
StatementsofofCash
CashFlows
Flows

13
13

Notes toto Consolidated
ConsolidatedFinancial
FinancialStatements
Statements

14
14

Report of Independent
IndependentAuditors
Auditors

24
26

Seino Group
Group

25
30

Board of Directors(As of June 26, 2021)
President

Yoshitaka Taguchi

Representative Director

Takao Taguchi

Directors

Yasuhisa Kotera
Hidemi Maruta
Harumi Furuhashi
Nobuyuki Nozu

Outside Directors

Meyumi Yamada
Shintaro Takai
Yoichiro Ichimaru

Standing Statutory Auditors

Shingo Terada
Nobuhiko Ito

Outside Statutory Auditors

Eiji Kasamatsu
Hiroyuki Masuda

next-generation transportation business.

Forward-looking Statements:
In this annual report, statements other than historicalfacts are forward-looking statements that reflect theplans and expectations of the Company. These
forward-looking statements involve risks, uncertainties
and other factors that may cause the Company’s
actual results and achievements to differ materiallyfrom those anticipated in these statements.

Seino Holdings Co., Ltd.

Financial Highlights

Operating revenue(Billions of Yen)

For the Years Ended March 31, 2021, 2020 and 2019

Thousands of
U.S. Dollars (Note)

Millions of Yen
2021

CONSOLIDATED BASIS:
Operating revenue
Operating income
Profit before income taxes
Net income
Net income per share (yen)CONSOLIDATED BASIS:
Cash and cash equivalents, and short-term investments
Property and equipment, net of accumulated depreciation
Total assets
Long-term debt and other long-term liabilities
Net assets
Net assets per share (yen)

2020

2021

2019

¥ 592,046 ¥ 625,627 ¥ 617,162
29,69731,196
24,561
39,89533,45027,621
25,84821,208
16,661128.41104.81
89.31$ 5,333,748
221,270
248,838
150,099
0.80

Millions of Yen

Thousands of
U.S. Dollars (Note)

2021

2020

¥103,054 ¥ 110,054 ¥ 111,998
315,984
310,633
334,605
654,533
657,983
672,248
17,99919,90544,478432,813426,207422,635
2,057.98
2,297.61 2,175.29(Note) U.S. dollar amounts are translated at ¥111 = U.S. $1, only for the convenience of readers.

2021

2019

$

928,415
3,014,459
6,056,288
400,7033,807,522
20.70

700
600
500
400
300
0

2019

2020

2021

2020

2021

2020

2021

Net income(Billions of Yen)

30
25
20
15
10
5
0
2019

Net assets(Billions of Yen)

450

400

350

300

Corporate Data
(As of March 31, 2021)

Company Name
Head Office
Date of Establishment
Paid-in Capital
Number of Shares Issued
Stock Listings
Transfer Agent
Independent Auditors

250

200
0
Seino Holdings Co., Ltd.
1, Taguchi-cho, Ogaki, Gifu 503-8501, Japan
Tel: 81-584-82-3881 Fax: 81-584-82-5043
November 1, 1946
¥42,482 million
207,679,783
The First Section of Tokyo Stock Exchange (code 9076)
The First Section of Nagoya Stock Exchange (code 9076)
Mitsubishi UFJ Trust and Banking Corporation
KPMG AZSA LLC

2019

1

Message from the Management

To Our Shareholders, Customers and Friends
We would like to take this opportunity to express our appreciation to our stakeholders, including shareholders
and other investors, for the consistent support you have shown us over the years. The results for the fiscal year
ending March, 2021 (April 1, 2020 to March 31, 2021) are presented herein.

Medium-term Management Plan
“Connecting our values - For the
Prosperity of our Customers,”
2021/4-2023-3
The following is a brief report on the performance of
Seino Holdings Co., Ltd. for the fiscal year ended March 31,
2021, our 100th term (from April 1, 2020 to March 31,2021).
During the fiscal year under review, Japan’s economy
outlook remained in a state of uncertainty due to the spreadof novel coronavirus disease (COVID-19), which in Japan
led to the declaration of a state of emergency twice and otherrestrictions on economic activities.
In the transportation industry, which is the Seino Group’s
mainstay business, although there was an increase in homedelivery cargo as the EC market expanded due to changes inwork styles and consumption styles in the COVID-19 crisis,
the downward trend in domestic freight cargo transportation
volume continued due to stagnant economic activities caused
by COVID-19, resulting in a difficult business environment.
Under these circumstances, the Seino Group has been
making unified efforts to enhance its corporate value by
providing value to solve customer issues and investing
intensively in business growth areas such as logistics, under
the three-year medium-term management plan “Connecting
our values - For the Prosperity of our Customers,” of which
the current fiscal year is the first year. In addition, as ofAugust 31, 2020, LIVING PRO-SEED, INC. was made asubsidiary in order to be able to handle “drop-off deliveries”
associated with the changes in the to C network in the newnormal era.
As a result, operating revenue for the fiscal year ended
March 31, 2021 was ¥592,046 million (down 5.4% year onyear), operating profit was ¥24,561 million (down 17.3% year
on year), ordinary profit was ¥27,751 million (down 11.9%
year on year), and profit attributable to owners of parent was¥16,661 million (down 35.5% year on year).

2

Future Outlook
As for the future outlook for the Japanese economy,
although a recovery in consumer activity is expected as
economic activity resumes after a period of stagnation, thesituation is expected to remain severe as there are still noprospects for when COVID-19 will subside.
In the transportation industry, which is the Seino Group’s
mainstay business, although there has been a remarkable
growth in products for individuals, mainly in the EC
market, as a result of the establishment of new lifestyles, thevolume of general cargo transportation is not expected toreach the level before the COVID-19 crisis, and a shortageof labor, including for long-distance drivers, is also expected.
Under such circumstances, we will aim to realize our
medium-term management plan by responding to thediversification of customer needs and changes in the newnormal era by having all employees share the concept of “SEI‘NO LIMIT’: Freedom from Limits’’ to exceed our own
limits in order to contribute to the prosperity of ourcustomers. As part of this effort, we have determined theneed for a strategic organizational structure and as of April
1, 2021, we have established the Transformation Promotion
Team and the Last One Mile Promotion Team in theBusiness Promotion Department. In the former, we will
utilize DX with the special cargo business as a base totransform and create new businesses and services, and pursue
group-wide efficiency improvements, including thecentralization of route operation systems. In addition, in thelatter we will accelerate the nationwide development ofvaluable last one mile services in the to C network, such as
the shopping service, which is being implemented
nationwide as a countermeasure for vulnerable shoppers,“ARUU,” an immediate delivery service for prescription
drugs, “SkyHub™,” a drone logistics service for depopulatedareas, and “OCCO,” an LCC home delivery service using
drop-offs, for which demand is growing.
In addition, we will provide continuous management
support to our customers by strengthening our sales
structure and training our human resources to enhance theirexpertise in order to transform ourselves from “Special cargo

Seino” to “Logistics Seino.”
In addition, we will strive to improve customer
satisfaction and productivity by enhancing IT services, suchas EDI cooperation and shipping support web services
represented by Kangaroo Magic, as well as strengthen
recruitment and improve retention rates of employees byintroducing unit operation and freight handling separation
to reform transformation, and by implementing measures toimprove employee ES.
In addition, we will also make efforts to reduce CO2
emissions through the expansion of modal shifts,
replacement with new vehicles, and more efficienttransportation.
In passenger vehicle sales in the Vehicle Sales Business, as
competition among channels is in its full swing due toToyota dealers selling all models simultaneously, it is difficult
to differentiate vehicles and maintain superiority throughprice strategy alone. Therefore, in order to increase customer
satisfaction and expand sales, we will implement optimal
customer service through our customer information
management system and renovate our stores. In truck sales as
well, we will aim to improve profitability by improving sales
support tools to expand sales of small trucks, and improving
the stake in vehicle inspection by utilizing advanced
maintenance equipment and expanding the lanes. In
addition, we will work to improve ES by introducing
advanced maintenance equipment to secure mechanics.
In the Merchandise Sales Business, the Real EstateBusiness, and Other Business, we will expand the businessdomain and strengthen existing businesses.
In accordance with our three-year medium-term
management plan, the Seino Group will work to be a
corporate group that contributes to our customers’ prosperity
and provides new value to achieve further growth.
To all shareholders, we sincerely ask for your ongoing
encouragement and support into the future.

Taguchi Yoshitaka,
President and Chief Executive Officer

June 2021

3

Special Feature

Expanding Scope of Operations and Creating New Value
2021 marked the final year of the three-year medium-term
management plan ““Connecting our values - For the Prosperity of
our Customers,” 2021/4-2023-3: Takeoff Toward Growth.” As
we pursue the maximization of our value, using the strength wehave cultivated until now, we will swiftly set forth reform andthe spirit of challenge to create new values.

Main Topics for 2021
Launching a “Shopping Taxi” Service

Suito Travel (head office: Asahi-machi, Ogaki, Gifu Prefecture ;President: Kazuyuki Umemura) launched a new service in which cab
drivers go shopping for customers who have been asked to selfquarantine due to the COVID-19 pandemic.
Under this service, taxi drivers purchase and make home deliveriesof groceries, meals, household goods, and more on behalf of seniorcitizens who live alone and cannot go shopping at the supermarket
and people who are worried about therisk of getting sick.
We launched this service as one
way of contributing to the community,
and we plan to continue this service
into the future due to the uncertain
situation surrounding the COVID-19
pandemic.

Establishing “We Support”

Coconet (head office: Chuo, Tokyo; president: Shuji Kawai)
established We Support in partnership with RCF and Oisix ra daichi.
We Support aims to provide free food to support medical
professionals involved in COVID-19 treatment. It provides food relief
to 19 medical institutions in Tokyo about twice a week. By matching
medical professionals who require food relief with information fromcompanies that request support, Coconet is able to centrally manage
and make deliveries of relief supplies from the Tokyo branch of Seino
Transport to medical institutions.

4First-Time Winner of the 21st
Logistics Environment Grand Prize

Seino Transportation won the Logistics Environment Grand
Prize for the first time at the 21st Logistics Environment Awards, anevent held by the Japan Association for Logistics and Transport.
The award is presented to business organizations that havecontributed to the development of the logistics business from theperspective of reducing environmental impact.
Seino Transportation received high evaluations among this year’s
candidates for its efforts to reduce its environmental impact and to
improve logistics efficiency by operating Kangaroo Liner SS60 freighttrains, switching to roll-on/roll-off ships, operating double trailer
trucks, and introducing large hybrid trucks for its long-distancenight-time trucking operations as transport reform measures.

Comprehensive Partnership
Agreement with Shiga Prefecture

Seino Transportation has signed a comprehensive partnershipagreement with Shiga Prefecture on regional safety and security andenvironmental conservation. Through this partnership, we will work
to revitalize the region and improve services for prefectural residents.
This agreement calls for cooperation in six areas: regional safety
and security, promoting women in the workplace, environmental
conservation, sports promotion, improvement of services forprefectural citizens, and the Shiga CO2 Net-Zero initiative, whichaims to reduce CO2 emissions to virtually zero by 2050. This is thefirst time Seino Transport has signed such an agreement with agovernment body.
As the first step of the partnership agreement, we introduced twolarge hybrid trucks that can
reduce our CO2 emissions
at our Shiga Branch. In
addition, as part of ourcooperation regarding thesafety and security of thelocal community, we will
watch over senior citizens
and provide data from drive
recorders in the event of an
accident.

Launching the Industry’s First LCC
Drop-Off Delivery Service

Seino Holdings established the Last One Mile Promotion Officeto accommodate expansion of the home delivery market forindividuals. That Office’s responsibilities will include developing a
low-cost carrier (LCC) home delivery business model.
As the first step in this initiative, LOCCO, a joint venture
involving Coconet, the Felissimo shopping website, and the ITcompany NL Plus, launched OCCO, the industry’s first LCC
drop-off delivery service, on August 17. This has enabled us to reliably
deliver products with innovative pricing based on the concept of
combining the Seino Group’s transportation network with gig
workers who do only what is needed when needed.
In order to enhance this service, we added Living Pro-Seed (headoffice: Minato, Tokyo; president: Ichiro Koizumi ), a company thatspecialized in promotions through the distribution of freenewspapers, to our Group on September 1. That company’s networkof approximately 10,000 delivery workers will be used to create amore flexible workforce for the home delivery industry.

dosage and administration instructions from a pharmacist. Goingforward, we plan to increase our collaboration with pharmacies andexpand this business nationwide.

New Smart Logistics Through Drone
Deliveries

Seino Holdings and Aeronext (head office: Shibuya, Tokyo; CEO:
Keisuke Toji) is jointly developing and commercializing SkyHub™, a
new smart logistics service that integrates existing logistics withdrone logistics.
In April, we built a warehouse and landing site in Kosuge,
Yamanashi Prefecture, and launched Japan’s first full-time dronebased delivery service. With SkyHub™, users can order products
using a smartphone or similar device, and the Seino Group’s logistics
network will deliver those products to the “drone depot,” which is thewarehouse where our drones are stationed. The drones then deliver
those products to the landing site nearest the user. The use of drones
will solve local issues through unmanned and automated systems.
② Order received, product

Investing in Startup Companies

The Logistics Innovation Fund, a fund established by Seino
Holdings in January this year that specializes in the logistics sector,
has begun operations by making investments in startup companies.
This fund has made investments in three companies: Bitkey inc., acompany that provides a next-generation digital key service called the
Bitkey platform; Minacolor inc., a company that provides online shopping
websites for pharmaceutical products as well as online drug dosage andadministration instructions and pharmaceutical drug deliveries; andOpenlogi inc., a provider of warehouse management IT systems.
Going forward, we will continue to encourage
innovation in the logistics industry by further
accelerating coexistence and co-creation withstartup companies that possess cutting-edge
technologies and business models.

Launching an Immediate Delivery
Service for Prescription Drugs

Seino Holdings launched an immediate delivery service forprescription drugs called ARUU.
Demand for prescription drug deliveries has been growing during
the COVID-19 pandemic, so we conducted a demonstration
experiment for an immediate prescription drug delivery service insome parts of Hokkaido starting in
June 2020. In the end, it received highpraise from patients, pharmacists, andother users, so we launched the service.
This service allows our delivery
personnel (called “Heartists”) to deliverprescription drugs within as little as
two hours after the patient has received③ Sortingleaves warehouse(online retailer)① Productordered(user)(delivery center)

Groceries,
householdgoods,
drugs, etc.

*Freight is managed with a unique SkyHub™ ID
from when it is ordered until the delivery has
been completed.
⑥ Product

received(user)⑤ Drop-off④ Temporary storage(drone platform)

Drone delivery(drone depot)

Completing Reconstruction of the
Fukagawa Branch

Seino Transportation completed reconstruction of its Fukagawa
branch, which had been underway since the previous year, and heldan opening ceremony.
Since its original completion in 1986, the former Fukagawa
Branch has been responsible for sales operations in Tokyo’s Chiyoda
and Chuo wards. This branch moved to Seino Logi Trans Shinkiba
after it was completed in March 2016, and it has been conducting
sales operations as the Tokyo Branch.
The newly completed Fukagawa Branch aims to further increase
earnings through “Logi Trans capabilities,” which include a truck
terminal and a 11,193 m² logistics warehouse in a good location near
downtown Tokyo.

5Expanding Our Operations Scope and Creating New Value
Transportation Services BusinessIn the Transportation Services Business, under the
medium-term management plan, we have been steadily
improving the Company’s performance, launching “Seino
Yuso Navi Pro,” a one-stop service that provides optimal
solutions to customers’ transportation problems, ranging frompallet size to single-vehicle charter units, by simply entering
information on the web.
At Seino Transportation Co., Ltd., the core company of
the Transportation Services Business group, we have beenworking to secure the volume of cargo the Company handles
by proactively liaising with strong industries based on its
accumulated analysis of performance data by industry, and by
utilizing its “Customer management System,” which centrally
manages customer information, including liaison history, inthe face of a significant decrease in the volume of cargohandled due to the stagnation of economic activities in the
COVID-19 crisis.
On the other hand, we have continued to review our route
flights, such as by optimizing costs to correlate with thevolume of cargo handled and reducing the number of flights
on operation courses where the loading volume has fallen.
In addition, we have been striving to improve the ES of ouremployees by continuing to renew our branches to improve theworking environment.
In office expansion efforts, Seino Transportation Co., Ltd.
and Seino Super Express Co., Ltd. newly established the
Fukagawa Branch (Koto-ku, Tokyo) and the Yamagata Sales
Office (Yamagata City, Yamagata Prefecture), respectively.
As a result of the above, operating revenue for this segment
was ¥441,091 million (down 5.4% year on year) and operating
profit was ¥18,375 million (down 21.3% year on year).

Vehicle Sales BusinessIn the business of passenger car sales, amidst the shrinking
passenger car sales market in the COVID-19 crisis, we havebeen developing sales activities such as campaigns centered on
support cars, early replacement proposals through the use ofresidual value installment sales, and taking advantage of theeffects of the introduction of new models. In addition, as aresult of our aggressive marketing activities to new customer
segments, taking advantage of the opportunity presented by
the introduction of Toyota vehicles being sold simultaneouslywith all other models, despite the number of new vehicles soldfor the full year being lower than that of the same period of
the previous year, the number of new vehicles sold in thesecond half of the year was higher than that of the previous
year. In used vehicle sales, retail sales volume recovered in thesecond half of the fiscal year to exceed that of the same periodof the previous year. In the service division, we strove to securerevenues by promoting vehicle inspections and vehicle
maintenance and garage services, as well as the sales of
products that lead to repeat visits such as maintenancepackages and automotive coatings.
In truck sales, we worked to expand sales in order toincrease the number of customers and the number of owned
vehicles, but due to cancellations related to the COVID-19
crisis and special demand for environmental regulation
compliance in the previous year the number of new vehicles
6

sold in Japan in the current fiscal year was lower than that ofthe previous fiscal year.
On the other hand, we have promoted the in-houseproduction of outsourced work by utilizing sheet-metal
painting plants and adding vehicle inspection lanes at theAnpachi sales office maintenance factory of Gifu Hino
Motors Co., Ltd., thus securing maintenance profits.
In office expansion efforts, Toyota Corolla Gifu Co., Ltd.
rebuilt its service factory of Gero Branch (Gero City, Gifu
Prefecture) and integrated it with the Gero Branch of Netz
Toyota Gifu Co., Ltd. to become the No. 1 dealer in theregion, Ogaki Kita Branch (Ogaki City, Gifu Prefecture)rebuilt its service factory, and Shiga Hino Motor Co., Ltd.
established a vehicle preparation center (Ritto City, Shiga
Prefecture).
As a result of the above, operating revenue for this segment
was ¥98,334 million (down 4.7% year on year) and operating
profit was ¥4,781 million (up 3.7% year on year).

Merchandise Sales Business
The Merchandise Sales Business engages in the sale of fuel,paper and paper products, and other products. Operating
revenue for this segment was ¥31,034 million (down 5.6% year

on year), partly due to the impact of a fall in sales unit prices
for fuel sales, and operating profit was ¥732 million (down
15.9% year on year).

Leasing for Real Estate Services BusinessIn the Leasing for Real Estate Services Business, we areoperating the former truck terminal and store sites, which had
been replaced mainly due to the impact of urban development
and increasingly cramped conditions, as rental apartments.

As a result of the above, operating revenue for this segment
was ¥1,865 million (up 7.7% year on year), and operating
profit was ¥1,495 million (up 8.1% year on year).

Other Business
Our Other Business segment includes the information
services business, the housing sales business, the construction
contract business, the passenger transportation business, andthe personnel services business. Operating revenue for thissegment was ¥19,722 million (down 7.8% year on year), andoperating profit was ¥486 million (down 29.4 % year on year).

Operating Revenue by Business Segment(Millions of yen)
FY Ended March 31, 2021

FY Ended March 31, 2020

Results

Results

Composition

Composition

Year-on-YearTransportation Services

441,09174.5%

466,473

74.6%(5.4%)

Vehicle sales

98,334

16.6%

103,165

16.5%(4.7%)

Merchandise sales

31,034

5.3%

32,8685.2%(5.6%)

Leasing for Real-estate Services

1,865

0.3%

1,732

0.3%

7.7%

Others

19,722

3.3%

21,3893.4%(7.8%)

Total

592,046

100.0%

625,627100.0%(5.4%)

Operating Income by Business Segment(Millions of yen)
FY Ended March 31, 2021

FY Ended March 31, 2020

Results

Results

Composition

Composition

Year-on-YearTransportation Services

18,37574.8%

23,33978.6%(21.3%)

Vehicle sales

4,781

19.4%

4,611

15.5%

3.7%

732

3.0%

871

2.9%

(15.9%)

1,495

6.1%

1,383

4.7%

8.1%

Others

486

2.0%

688

2.3%

(29.4%)

Total

25,869105.3%

30,892104.0%(16.3%)

Elimination(1,308)(5.3)(1,195)(4.0)—

Consolidated

24,561100.0%

29,697100.0%(17.3%)

Merchandise sales
Leasing for Real-estate Services

7

Financial Review
Operating Result

Financial Position

The consolidated sales of Seino Holdings for the fiscal
year ended March 2021 amounted to ¥592,046 million (a5.4% decrease from the previous fiscal year). Despite theincrease in home delivery cargo in the transportationindustry, our Group’s main business, which was due to thegrowth of the online shopping market due to working stylechanges and changes in consumption style that were causedby the COVID-19 pandemic, our results were impacted by
the harsh business environment, which was marked by theongoing downward trend in domestic cargo volumes due tostagnant economic activity resulting from the effects of
COVID-19. Operating costs amounted to ¥525,852 million,
which was a 5.0% decrease from the previous fiscal year, andthe ratio of operating costs rate to sales stood at 88.8%, a
0.3% increase from the previous fiscal year.
Sales, general, and administrative expenses came to¥41,633 million (a 1.8% decrease from the previous fiscal
year) due to a decrease in salaries linked to businessperformance as a result of stagnant transport volumes, andoperating profit came to ¥24,561 million.
Due to the impact of the extraordinary gain on the sale ofland in the previous fiscal year, current net income before
taxes and other adjustments decreased by 30.8% from theprevious fiscal year to ¥27,621 million, and current net
income fell by 35.5% from the previous fiscal year to ¥16,661
million.
Current net income per share stood at ¥89.31, and returnon equity was 3.9%. Annual cash dividend per share fell to¥27.00, which marked a 30.8% decrease from the previous
fiscal year.

Total assets at the end of the current consolidated fiscal
year amounted to ¥672,248 million, which marked anincrease of ¥17,715 million from the end of the previous
consolidated fiscal year. The main factors were the acquisitionof new land and buildings and an increase in the market
value of marketable securities held, despite a decrease in cash
and deposits. Liabilities totaled ¥249,613 million, whichmarked a ¥27,893 million increase from the end of theprevious consolidated fiscal year due to the issuance of
convertible bonds with stock acquisition rights. Furthermore,
net assets decreased by ¥10,178 million from the end of theprevious consolidated fiscal year to reach ¥422,635 million.
The main reason for this was our large-scale acquisition oftreasury stock.

Cash Flows

Cash flow from operating activities amounted to ¥38,685
million, marking an increase of ¥3,721 million from theprevious consolidated fiscal year, due mainly to the fact that
there were no gains on sales of fixed assets this fiscal year.
Cash flow from investment activities came to −¥27,966
million, which was a ¥9,913 million increase from theprevious consolidated fiscal year. This was the result of a lossof revenue due to the sale of tangible and intangible fixed
assets in conjunction with the sale of the land of the former
Tokyo Branch.
Cash flow from financial activities rose by ¥11,431 million
from the previous consolidated fiscal year to ¥10,491 million
resulting from an increase in expenditures due to theacquisition of treasury stock and the issuance of convertible
bonds with stock acquisition rights.
As a result, cash and cash equivalents in the current
consolidated fiscal year increased by ¥201 million from theprevious consolidated fiscal year to ¥93,683 million.

Operating income to operating revenue
Net income (loss) to operating revenue

Net income (loss) to total assets
Return on equity ratio

Shareholders’ equity ratio

(%)

(%)

(%)

8

8

80

7

7

6

6

5

5

4

4

3

3

2

2

1

1

0

0

60

40

-1

8

2016

2017

2018

2019

2020

2021

-1

20

2016

2017

2018

2019

Operating income to operating revenue

Net income (loss) to total assets

Net income (loss) to operating revenue

Return on equity ratio

2020

2021

0

2016

2017

2018

2019

2020

2021

SEINO HOLDINGS CO., LTD. and Consolidated Subsidiaries

Six-year Summary

For the Years Ended March 31, 2021, 2020, 2019, 2018, 2017 and 2016
Millions of Yen
2021
For the year:
Operating revenue:
Transportation services
Vehicle sales
Merchandise sales
Leasing for real estate services
Other
Operating costs
Selling, general andadministrative expenses
Operating income
Net income (loss)
At year-end:
Current assets
Total assets
Current liabilities
Short-term borrowings
Long-term debt, including current maturities
Net assets

¥

2020

592,046
441,091
98,33431,034
1,865
19,722525,852¥2019

625,627
466,473
103,165
32,868
1,732
21,389553,541¥2018

617,162
462,459
100,960
33,518
1,651
18,574545,253¥2017

596,130
443,168
103,342
31,575
1,599
16,446529,196¥2016

567,539422,870
100,237
27,7491,543
15,140502,639¥555,457
416,113
94,441
28,0291,472
15,402492,802

41,63324,561
16,661

42,38929,697
25,84840,71331,196
21,20839,05527,87920,04737,783
27,117
18,206

36,46926,186
18,864

242,711672,248
110,993
4,471
44,478422,635

248,332
654,533
111,582
4,130
17,999432,813251,683
657,983
130,357
5,470
19,905428,934

243,883
628,728
125,871
3,610
21,776
405,739

232,792594,264
106,479
2,704
26,468381,299

221,278
579,565
104,207
2,768
25,293371,007

Yen
Per share data:
Net (loss) income:-BasicCash dividends¥

Number of shares issued

89.31
27.00

¥

207,679

128.41
39.00¥

104.81
32.00¥

101.8830.00

Thousands
207,679

207,679

¥

92.09
27.00

¥

94.87
28.00

207,679

207,679

207,679

4.7
3.3
3.2
5.2
63.4
193.8
55.9
29.4

4.8
3.2
3.1
4.9
63.1
218.6
56.8
29.3

4.7
3.3
3.3
5.3
63.0
212.3
57.2
29.5

Percent
Ratios:Operating income to operating revenue
Net income (loss) to operating revenue
Net income (loss) to total assets
Return on equity ratio
Shareholders’ equity ratio
Current ratio
Debt equity ratio
Payout ratio

4.1
2.8
2.5
3.9
62.4
218.7
59.5
30.2

Current ratio
(%)

240

4.7
4.1
3.9
6.1
65.1
222.6
52.0
30.4

5.0
3.4
3.2
5.2
63.8
193.1
55.2
30.5

Debt equity ratio

Payout ratio

(%)

(%)

120

50

200

40

90

160
30
120

60

20

80
30

10

40

0

2016

2017

2018

2019

2020

2021

0

2016

2017

2018

2019

2020

2021

0

2016

2017

2018

2019

2020

2021

9

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Balance Sheets
March 31, 2021 and 2020

Millions of yen
2021
Assets:Current assets:
Cash and cash equivalents (Note 3)
Short-term investments (Notes 3 and 5)
Trade receivables (Note 3)Inventories (Note 4)
Other current assets
Allowance for doubtful accounts
Total current assets¥

Property and equipment (Notes 6, 7 and 9):
At costAccumulated depreciation
Net property and equipment
Investments and other assets:
Investment securities (Notes 3 and 5)
Investments in and long-term loans to affiliates and nonconsolidated subsidiaries (Note 5)
Goodwill
Deferred tax assets (Note 17)
Other assets
Total investments and other assets
Total assets
Current liabilities:
Short-term borrowings (Notes 3, 9, 10 and 11)
Current portion of long-term debt (Notes 3, 9 and 11)
Trade payables (Note 3)
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities

93,683
9,371
120,402
13,544
5,924(213)
242,7112020
93,482
16,572
119,047
13,7785,715(262)
248,332$

661,221(326,616)
334,605

638,007(322,023)
315,984

5,956,946(2,942,487)
3,014,459

41,074
17,865
11,48013,93834,563
16,876
13,094
15,516370,036
160,946
103,423
125,568

90,217654,533

855,243$ 6,056,288

4,130
2,342
48,711
16,352
4,822
35,225111,582$¥

10,575¥¥Long-term debt (Notes 3, 9 and 11)
Employee retirement benefit liability (Note 12)
Asset retirement obligations (Note 8)
Accrued severance indemnities for directors and corporate auditors
Provision for share-based remuneration
Provision for directors’ stock payments
Deferred tax liabilities (Note 17)
Other long-term liabilities
Total liabilities

Thousands of
U.S. dollars
2021

94,932
672,248

4,471
2,187
48,641
15,895
3,827
35,972110,993

10,168¥¥

843,991
84,424
1,084,703
122,018
53,369(1,919)2,186,586

95,27040,27919,703438,207
143,198
34,478324,072
999,937

42,291
81,439
3,628
1,570
5,448
143

15,657
79,784
3,568
1,508
5,634
97

381,000
733,685
32,68514,14449,0811,288

1,078
249,6131,183
221,720

9,712
2,248,766

42,482
81,626321,179(35,498)
409,789

42,482
83,744
312,202(15,837)
422,591

382,721735,369
2,893,505(319,802)
3,691,793

15,344(122)(4,890)
(860)
9,472
3,374
422,635
672,248

9,898
(109)
(5,613)
(603)
3,573
6,649
432,813654,533

138,234(1,099)

3,023

2,707

27,234

Commitments and contingent liabilities (Notes 13 and 14)
Net assets:
Shareholders’ equity (Note 15):
Common stock: 794,524,668 shares authorized and 207,679,783 shares issued
Capital surplus
Retained earnings
Less treasury stock at cost: 25,203,489 shares in 2021 and 11,762,469 shares in 2020
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities
Land revaluation decrement
Retirement benefit adjustment
Foreign currency translation adjustments
Total accumulated other comprehensive income
Noncontrolling interests
Total net assets
Total liabilities and net assets

See accompanying Notes to Consolidated Financial Statements.
10

¥

¥

(44,054)(7,748)85,33330,396
3,807,522$ 6,056,288

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Income
For the Years Ended March 31, 2021, 2020 and 20192019

Thousands of
U.S. dollars
2021

617,162$ 5,333,748

Millions of yen
2021
Operating revenue (Note 20)¥

Operating costs and expenses (Note 12):
Operating costs
Selling, general and administrative expenses

592,0462020¥

625,627¥

525,852
41,633
567,485
24,561

553,541
42,389595,930
29,697545,253
40,713585,966
31,196

4,737,406
375,072
5,112,478
221,270

1,350
(408)
189
(90)
310
597
(652)
1,011
443
(54)
(383)
—
—
747
3,060
27,621

788
(458)
(40)
(5)
516
12
15,457
26
(26)
(542)
—
—
(5,634)104
10,19839,895

716
(334)
(69)
—
91
23
436
478
874
(1,236)
—
88
—
1,187
2,254
33,45012,162(3,676)
1,703
(811)
2,793
5,378
(5,874)
9,108
3,991
(486)
(3,450)——6,730
27,568248,838

Income taxes (Note 17):
Current
Deferred
Total income taxes

11,272(496)
10,776

13,222965
14,187

14,582(2,220)12,362

101,550(4,469)97,081

Profit16,84525,70821,088

151,757

Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain (loss) on investments in partnerships
Commission for purchase of treasury shares
Subsidy income
Subsidies for employment adjustment(Loss) gain on sale or disposal of property and equipment
Gain on sale of investment securities
Share of profit (loss) of entities accounted for using equity method
Impairment loss on fixed assets (Notes 2(i) and 20)
Loss on valuation of shares of subsidiaries and associates
Gain on negative goodwill (Note 20)
Provision for share-based remuneration
Miscellaneous, net
Profit before income taxes

Profit (Loss) attributable to noncontrolling interests
Profit attributable to owners of parent¥

184
16,661¥(140)
25,848¥(120)
21,208$

U.S. dollars

Yen
Per share:
Profit attributable to owners of parent-Basic-Diluted
Cash dividends

¥

89.31
89.29
27.00

¥

128.41
—
39.00

1,658
150,099¥104.81
—
32.00

$

0.80
0.80
0.24

See accompanying Notes to Consolidated Financial Statements.
11

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income
For the Years Ended March 31, 2021, 2020 and 20192019

Thousands of
U.S. dollars
2021¥

21,088$

151,757¥(1,965)
1,513
(53)
(256)
(761)
20,327$48,495
5,649
(459)
(523)
53,162204,919

Millions of yen
2021

ProfitOther comprehensive income (Note 18):
Net unrealized gains on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests

2020

¥

16,845

¥

5,383
627
(51)
(58)
5,901
22,746¥

22,560186¥

25,708¥(2,794)(1,178)45(92)(4,019)21,689¥21,797(108)¥

20,463(136)$

203,243
1,676

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Net Assets
For the Years Ended March 31, 2021, 2020 and 2019

Shareholders’ equity
Accumulated other comprehensive income
Total
Number of
Net unrealized
Foreignshares of
Total
gains onLand
Retirement currency accumulated
Non
other
common Common Capital Retained Treasury shareholders’ available-for- revaluation benefit translation comprehensive controlling Total net
stock issued stock
surplus earnings
stock
equity sale securities decrement adjustment adjustments income
interests
assetsMillions of yen
Balance at March 31, 2018 207,679,783 ¥ 42,482 ¥ 82,040 ¥ 274,994 ¥ (8,956) ¥ 390,560 ¥ 14,716 ¥ (114) ¥ (5,934) ¥(304) ¥ 8,364 ¥ 6,815 ¥ 405,739
Cumulative effects of changes inaccounting policies
—
—
—
2,735
—
2,735
—
—
—
—
—
—
2,735
Restated balance at March 31, 2018 207,679,783 ¥ 42,482 ¥ 82,040 ¥ 277,729 ¥ (8,956) ¥ 393,295 ¥ 14,716 ¥ (114) ¥ (5,934) ¥(304) ¥ 8,364 ¥ 6,815 ¥ 408,474
Profit attributable to owners of parent———
21,208—21,208——————21,208Cash dividends———(6,054)—(6,054)——————(6,054)Purchases of treasury stock andfractional shares, net
—
—
1,704
—
4,504
6,208
—
—
—
—
—
—
6,208
Change in treasury shares of parent arising fromtransactions with noncontrolling shareholders
—
—
4
—
—
4
—
—
—
—
—
—
4
Net changes in items other thanshareholders’ equity
—
—
—
—
—
—
(2,008)
—
1,537
(275)
(746)
(160)
(906)
Balance at March 31, 2019 207,679,783
42,482
83,748292,883(4,452) 414,661
12,708(114)(4,397)
(579)
7,618
6,655
428,934
Profit attributable to owners of parent———
25,848—25,848——————25,848Cash dividends———(6,524)—(6,524)——————(6,524)
Reversal of land revaluation decrement
—
—
—
(5)
—
(5)
—
—
—
—
—
—
(5)
Purchases of treasury stock andfractional shares, net———— (11,385)(11,385)
—
—
—
—
—
—
(11,385)
Change in treasury shares of parent arising fromtransactions with noncontrolling shareholders
—
—
(4)
—
—
(4)
—
—
—
—
—
—
(4)
Net changes in items other thanshareholders’ equity
—
—
—
—
—
—
(2,810)5(1,216)(24)(4,045)(6)(4,051)
Balance at March 31, 2020 207,679,783
42,482
83,744
312,202 (15,837) 422,591
9,898
(109)
(5,613)
(603)
3,573
6,649
432,813
Profit attributable to owners of parent———
16,661—
16,661——————
16,661
Cash dividends———(7,684)—(7,684)——————(7,684)Purchases of treasury stock andfractional shares, net——
3— (19,661)(19,658)
—
—
—
—
—
—
(19,658)
Change in treasury shares of parent arising fromtransactions with noncontrolling shareholders——(2,121)——(2,121)——————(2,121)
Net changes in items other thanshareholders’ equity
—
—
—
—
—
—
5,446
(13)
723
(257)
5,899
(3,275)2,624
Balance at March 31, 2021 207,679,783 ¥ 42,482 ¥ 81,626 ¥ 321,179 ¥ (35,498) ¥ 409,789 ¥ 15,344 ¥ (122) ¥ (4,890) ¥(860) ¥ 9,472 ¥ 3,374 ¥ 422,635
Balance at March 31, 2020
Profit attributable to owners of parent
Cash dividends
Purchases of treasury stock andfractional shares, net
Change in treasury shares of parent arising fromtransactions with noncontrolling shareholders
Net changes in items other thanshareholders’ equity
Balance at March 31, 2021

12

Thousands of U.S. dollars$ 382,721 $ 754,450 $2,812,631 $(142,676) $3,807,126 $ 89,171 $ (982) $ (50,568) $ (5,432) $ 32,189 $ 59,901 $ 3,899,216——
150,099—
150,099——————
150,099——(69,225)—(69,225)
—
—
—
—
—
—
(69,225)—

27—(19,108)— (177,126)(177,099)

—

—

—

—

—

—

(177,099)—(19,108)

—

—

—

—

—

—

(19,108)

—

—
—
—
—
—
49,063(117)
6,514(2,316)53,144 (29,505)
23,639$ 382,721 $ 735,369 $2,893,505 $(319,802) $3,691,793 $ 138,234 $ (1,099) $ (44,054) $ (7,748) $ 85,333 $ 30,396 $ 3,807,522

See accompanying Notes to Consolidated Financial Statements.

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows
For the Years Ended March 31, 2021, 2020 and 20192019

Thousands of
U.S. dollars
2021

33,450$Millions of yen
2021
Cash flows from operating activities:
Profit before income taxes¥
Adjustments for:
Depreciation
Impairment loss on fixed assets
Amortization of goodwill
Gain on negative goodwill
Net increase in employee retirement benefit liability
Loss (gain) on sale or disposal of property and equipment
Share of (profit) loss of entities accounted for using equity method(Profit) loss on investments in partnerships
Gain on sale of investment securities
Loss on valuation of shares of subsidiaries and associates
Net provision (reversal) for accrued severance indemnities for directors andcorporate auditors(Decrease) increase in provision for share-based remuneration
Net provision for directors’ stock payments(Increase) decrease in trade receivables
Decrease (increase) in inventories(Decrease) increase in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Increase in property and equipment
Increase in long-term investments and loans
Decrease in property and long-term investments
Decrease (increase) in short-term investments
Purchase of shares of subsidiaries resulting in change in scope of
consolidation (Note 16)
Net cash used in investing activities
Cash flows from financing activities:
Increase in long-term debt
Repayment of long-term debt
Net (decrease) increase in short-term borrowings
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
Proceeds from share issuance to noncontrolling shareholders
Dividends paid to shareholders
Dividends paid to noncontrolling interests
Purchases of treasury stock, net of disposals
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

¥

2020

27,621¥

20,352
54
1,639
—
2,611
652
(443)
(189)
(1,011)

39,895¥

248,838
183,351486
14,766—23,523
5,874(3,991)(1,703)(9,108)20,198
542
1,636
—
2,501
(15,457)
26
40
(26)
—

19,001
1,236
1,437
(88)
2,929
(436)
(874)

(767)
214
(451)
(447)
50,141
1,258(389)(12,325)
38,685

52
5,634
56
2,414
(691)
(6,185)(666)
49,9691,204(445)(15,764)
34,964

(174)
—
42
(845)
1,491
2,585
878
60,223974(264)(12,924)
48,009(6,910)
1,928(4,063)(4,027)451,721
11,333(3,504)(111,036)
348,514(35,453)(1,000)
1,652
7,093

(34,693)(3,937)
23,641(2,916)(30,620)(3,956)
2,686
10,474(319,397)(9,009)14,88363,901(258)(27,966)(148)(18,053)(1,114)(22,530)(2,324)(251,946)

25,389(1,039)(422)

200(1,815)(1,138)790(1,731)
595

228,730(9,360)(3,802)(5,518)—(7,492)(71)(19,998)(1,340)(10,491)(27)
201
93,482
93,683—21(6,524)(52)(11,385)(1,229)(21,922)31(4,980)98,462
93,482—48(6,054)(38)
357(1,161)(7,194)(37)
18,24880,214
98,462(49,712)—(67,496)(640)(180,162)(12,072)(94,514)
(243)
1,811
842,180$ 843,991

383
62

(185)
46

¥

69
(478)
—

¥

3,450
559

(1,667)415

See accompanying Notes to Consolidated Financial Statements.
13

SEINO HOLDINGS CO., LTD. and Subsidiaries

Notes to Consolidated Financial Statements
1. Basis of Consolidated Financial
Statements
The accompanying consolidated financial statements of SEINO HOLDINGS
CO., LTD. (the “Company”) and its subsidiaries (together with the Company, the“Seino Group”) have been prepared in accordance with the provisions set forth in
the Financial Instrument and Exchange Law of Japan and its related accounting
regulations and in conformity with accounting principles generally accepted inJapan (“Japanese GAAP”), which are different in certain respects as to applicationand 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 theCompany prepared in accordance with Japanese GAAP and filed with theappropriate 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 not required for fair presentation, is not presented in theaccompanying consolidated financial statements.
The translation of the Japanese yen amounts into U.S. dollar amounts
is included solely for the convenience of readers outside Japan, using theapproximate exchange rate prevailing at March 31, 2021, which was ¥111 to
U.S. $1.00. The translation should not be construed as a representation that
the Japanese yen amounts have been, could have been or could in the future beconverted into U.S. dollars at this or any other rate of exchange.

2. Summary of Significant Accounting
Policies
(a)

(b)

(c)

(d)

Principles of consolidation

The accompanying consolidated financial statements include the accounts of
the Company and all of its subsidiaries. Investments in significant affiliates areaccounted for by the equity method. Investments in affiliates not accounted for by
the equity method are stated at cost. Differences between the acquisition cost ofinvestments in subsidiaries and the underlying equity in their net assets, adjusted
based on the fair value at the time of the acquisition, are deferred as goodwill andamortized over the estimated useful life, 5-15 years, on a straight-line basis. Allintercompany transactions and accounts have been eliminated on consolidation.
Under accounting standards for consolidation, a subsidiary is defined as anenterprise which is controlled by another enterprise and is a majority (more than50%) owned enterprise or a 40% to 50% owned enterprise that meets certain
criteria. An affiliated company is defined as an enterprise in which the investor
has significant influence and is an enterprise other than a subsidiary that is a 20%
or more owned enterprise or a 15% to less than 20% owned enterprise that meets
certain criteria. For each of the years ended March 31, 2021, 2020 and 2019, there
were six companies that were not a more than 50% owned enterprise but were
nevertheless classified as subsidiaries based on the judgment of the Company inaccordance with the applicable accounting standards.
The number of subsidiaries and affiliates for the years ended March 31, 2021,
2020 and 2019 was as follows:
Subsidiaries:
Domestic
Overseas
Affiliates accounted for by the equity method
Nonconsolidated subsidiaries
Affiliates stated at cost

2021

2020

2019

76
6
6
1
14

76
5
6
2
15

75
6
7
—
15

The Company and most of its subsidiaries have a fiscal year that ends on
March 31. The overseas subsidiary closes its books on December 31. Fuze Co.,
Ltd., the Company’s subsidiary, has a 14-month settlement period for this fiscal
year because it changed its fiscal year that ended on October 31 to March 31. In
addition, one subsidiary has a fiscal year that ends on June 30 and provisionallyprepares financial statements as of March 31. Significant transactions for theperiod between the subsidiary’s year-end and the Company’s year-end are
adjusted for on consolidation.
Nonconsolidated subsidiaries are excluded from the scope of consolidation
because they are all small in scale, and any total amount in terms of their
total assets, operating revenue and profit or loss (amount corresponding to
the Company’s ownership interest) as well as retained earnings (amountcorresponding to the Company’s ownership interest) and others does not
significantly affect the consolidated financial statements.

14

The consolidated financial statements include the accounts of the overseas
subsidiary prepared under IFRS in accordance with Practical Issues Task Force(“PITF”) No. 18, “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements,” issued
by the Accounting Standards Board of Japan (“ASBJ”).

(e)Cash and cash equivalents

The Seino Group considers highly liquid debt instruments purchased with an
original maturity of three months or less to be cash equivalents.

Investments and marketable securities

The Seino Group classifies certain investments in debt and equity securities as“held-to-maturity,” “trading” or “available-for-sale.” The classification determines
the respective accounting method applied as stipulated by the accounting
standard for financial instruments. Held-to-maturity securities are stated atamortized cost. Marketable securities with market quotations for available-forsale securities are stated at fair value, and net unrealized gains and losses onthese securities are reported as accumulated other comprehensive income in net
assets, net of applicable income taxes. Gains and losses on the disposition ofavailable-for-sale securities are computed based on the moving average method.
Nonmarketable securities without available market quotations for available-forsale securities are carried at cost determined by the moving average method.
Adjustments in carrying values of individual securities are charged to income
through write-downs when a decline in value is deemed other than temporary.
Investments in partnerships are stated at the amount of net assets attributed tothe ownership percentage of the Company.

Accounting for derivatives

Derivative transactions are omitted due to their insignificance to the operationof the Seino Group’s business.

Allowance for doubtful accounts

Allowance for doubtful accounts is provided for at the aggregate amount of
estimated credit loss based on an individual financial review of certain doubtfulor troubled receivables and a general reserve for other receivables based on thehistorical loss experience for a certain past period.

(f)Inventories(g)

Property and equipment and depreciation

Inventories for merchandise, products, raw materials and supplies are statedprincipally at the lower of moving average cost or net realizable value, andinventories for vehicles and work-in-process are stated principally at the lower of
specific identification cost or net realizable value.

Property and equipment, including significant renewals and additions, arestated at cost. Property and equipment of the Company and certain subsidiaries
are depreciated by the straight-line method for buildings and vehicles and by the
declining balance method for other property.
Property and equipment of other subsidiaries have been depreciatedprincipally by the declining balance method, except for buildings acquired on andafter April 1, 1998, property held for lease and facilities attached to buildings andstructures acquired on and after April 1, 2016. Buildings acquired on and after
April 1, 1998 and facilities attached to buildings and structures acquired on andafter April 1, 2016 by the domestic subsidiaries are depreciated by the straightline method. Some of the subsidiaries capitalize property for which the cost was
not less than ¥100,000 but below ¥200,000 and depreciate it over three years on astraight-line basis.
The Seino Group, as lessee, capitalizes assets used under finance leases, except
for certain immaterial or short-term finance leases accounted for as operatingleases. Depreciation of leased assets capitalized in finance lease transactions as
lessee is computed by the straight-line method over the lease term as the usefullife with the assumption of no residual value. The leased property of a certain
subsidiary engaged in leasing operations as lessor is recorded at cost in property
and equipment in the accompanying consolidated balance sheets under operatinglease accounting and is depreciated over the term of the lease contract by thestraight-line method to the amount equal to the estimated disposal value at thelease termination date.
Expenditures on maintenance and repairs are charged to operating income
as incurred. Upon the disposal of the property, the cost and accumulated
depreciation are removed from the accounts and any gain or loss is recorded asincome or expense.

(h)

(i)

Intangible assets

Intangible assets are amortized on a straight-line basis. Software, which isincluded in intangible assets, is amortized using the straight-line method over theestimated useful life of five years.

The Company and its domestic subsidiaries have adopted the “AccountingStandard 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 fixed assets be reviewed for impairment whenever eventsor changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. An impairment loss is to be recognized in the income
statement by reducing the carrying amount of the impaired asset or group ofassets to the recoverable amount, to be measured as the higher of the asset’s net
selling price or value in use. Fixed assets include intangible assets as well as land,buildings and other forms of property and are to be grouped at the lowest level
for which there are identifiable cash flows distinguishable from other groupsof assets. For the purpose of recognition and measurement of impairment loss,
fixed assets are grouped into cash-generating units, such as operating businessbranches other than idle or unused property. The method used to group assets
to measure impairment of fixed assets in the transportation services segment,
excluding some consolidated subsidiaries, is a method that groups assets by theentire segment. At March 31, 2021, 2020 and 2019, recoverable amounts ofassets were measured based on value in use using discounted future cash flows at
interest rates principally of 4.8%, 8.7% and 8.2%, respectively, or net selling prices
using primarily appraisal valuations. As a result, the Seino Group recognizedimpairment loss as follows:

2021
Property subject toimpairment:

2020

1 businessbranchImpairment loss recorded for:land¥
buildings and structuresother property¥

6 businessbranchesand 1 idle
property

54 ¥
—
—
54 ¥

2019

6 businessbranchesand 3 idle
properties

359 ¥
129
54
542 ¥

Thousandsof U.S.
dollars
2021

676 $
543
17
1,236 $

486
—
—
486

Accumulated impairment loss has been directly deducted from the applicable
assets.

(k)(l)

Accounting standard for impairment of fixed assets

Millions of yen(j)Special Taxation Measures Law, Reserve Under Special Laws and Reserve for
Retirement Benefits to Directors and Corporate Auditors.”

(m)

(n)

(o)

(p)

(q)

(r)

Employee retirement benefits

Employees who terminate their service with the Seino Group are entitled
to retirement benefits determined generally by reference to basic rates of pay
at the time of termination, length of service and conditions under which thetermination occurs.
The Seino Group has recognized retirement benefits for employees, including
pension cost and related liability, based on the actuarial present value of
retirement benefit obligation using the actuarial appraisal approach and the fairvalue of pension plan assets available for benefits at the fiscal year-end. In thecalculation of the retirement benefit obligation, the expected retirement benefits
are attributed to the period up to the end of the respective fiscal year basedon the straight-line method. Actuarial differences arising from changes in theretirement benefit obligation or the value of pension plan assets resulting from
actual outcomes different from that which were assumed and from changes in theassumptions themselves are amortized on a straight-line basis over principally ten
years, a period within the average remaining service years of employees, from theyear following the year in which they arise. Past service cost is amortized using
the straight-line method over principally ten years, a period within the averageremaining service years of employees, from the year in which it occurs.

(s)

Severance indemnities for directors and corporate auditors

The Seino Group pays severance indemnities to directors and corporate
auditors subject to the approval of the shareholders. Certain subsidiaries provide
for accrued severance indemnities for directors and corporate auditors at theamount that would have been payable if the directors and corporate auditors had
retired at the end of the fiscal year based on internal rules, in accordance with
the Japanese Institute of Certified Public Accountants (“JICPA”) Audit andAssurance Committee Report No. 42, “Treatment for Auditing of Reserve Under(t)

Provision for share-based remuneration

To provide for the delivery of the Company’s shares to employees inaccordance with the regulations on the delivery of shares, the estimated amountof share-based remuneration to be paid at the end of the current fiscal year isrecorded.

Provision for directors’ stock payments

Provision for directors’ stock payments has been provided for stock award debt
based on regulations for awarding stock, which is prepared for future awards ofthe company shares to its directors, excluding outside directors.

Revenue recognition for freight charges

The Seino Group recognizes freight charges as revenue when freight isreceived for shipment. In relation to its revenue recognition, the Seino Group
records freight charges from customers and charges paid to interline carriers as
operating revenue and operating costs and expenses, respectively.

Income taxes

Income taxes are accounted for by the asset-liability method. Deferred tax
assets and liabilities are recognized for the future tax consequences attributable
to differences between the carrying amounts of existing assets and liabilities andtheir 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 tobe recovered or settled.

Enterprise taxes

The Seino Group records local corporate enterprise taxes based on the“added value” and “capital” amounts when levied as size-based corporate taxes
for local government enterprise taxes, which are included in selling, general andadministrative expenses.

Appropriation of retained earnings

Cash dividends are recorded in the fiscal year during which a proposed
appropriation of retained earnings is approved by the Board of Directors and/or
shareholders.

Translation of foreign currency accounts

Receivables, payables and securities, other than stocks of subsidiaries, aretranslated into Japanese yen at the exchange rates prevailing at the fiscal year-end.
Transactions in foreign currencies are recorded based on the prevailing exchange
rates on the transaction dates. Resulting translation gains and losses are includedin current earnings.
In respect to the financial statement items of overseas subsidiaries, all asset,
liability, income and expense accounts are translated into yen by applying theexchange rates in effect at the fiscal year-end. Translation differences, after
allocations of portions attributable to noncontrolling interests, are reported as
foreign currency translation adjustments in a component of net assets on theaccompanying consolidated balance sheets.

Per share data

Basic net income per share is computed by dividing income available tocommon shareholders by the weighted average number of shares of common
stock outstanding during the respective year, retroactively adjusted for stock splits.
Unless there is an anti-dilutive effect, diluted net income per share is calculated
to reflect the potential dilution assuming that all convertible bonds are converted
at the time of issue. Diluted earnings per share for the fiscal year ended March
31, 2020 is not shown because there were no potentially dilutive shares.
Cash dividends per share shown for each fiscal year in the accompanying
consolidated statements of income represent dividends declared as applicable to
the respective years.

Adoption of consolidated taxation system

The Company and some of its subsidiaries have adopted the consolidated
taxation system, with the Company as the taxable parent company.
(Additional information)
Application of tax effect accounting for the transition from the consolidated

15

Effective datetax payment system to the group taxation system
With regard to Paragraph 3 of “Practical Solution on the Treatment of Tax
Effect Accounting for the Transition from the Consolidated Taxation System to
the Group Tax Sharing System” (PITF No. 39, March 31, 2020), the Company
and its domestic consolidated subsidiaries did not follow Paragraph 44 of the“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No.
28, February 16, 2018) but applied provisions of pre-amended tax laws whencalculating the amounts of deferred tax assets and liabilities that related totransitioning to the group taxation system and related amendments of tax laws
for transitioning to the single tax payment system.

(u)

The Fair Value Accounting Standards and the related guidance will beeffective from the beginning of the consolidated fiscal year ending March
31, 2022.

(ii) Changes in presentation methods(Consolidated Statements of Income)
Effective from the fiscal year under review, “Subsidies for employment
adjustment” and “Commission for purchase of treasury shares,” which had
been included in “Miscellaneous, net” for the previous fiscal year, have beenpresented separately because of their increased importance. In addition,“Compensation received for the exercise of eminent domain” has been
included in “Miscellaneous, net” because of its decreased importance. The
Consolidated Statements of Income for the fiscal years ended March 31,
2020 and 2019 were reclassified to conform to the change in presentation.
As a result, ¥15 million and ¥96 million recorded in “Miscellaneous, net” and“Compensation received for the exercise of eminent domain” for the fiscal
year ended March 31, 2020 were reclassified to “Subsidies for employment
adjustment” of ¥12 million, “Commission for purchase of treasury shares” ofnegative ¥5 million and “Miscellaneous, net” of ¥104 million. In addition,¥1,159 million and ¥51 million recorded in “Miscellaneous, net” and“Compensation received for the exercise of eminent domain,” respectively,
for the fiscal year ended March 31, 2019 were reclassified to “Subsidies for
employment adjustment” of ¥23 million and “Miscellaneous, net” of ¥1,187
million.

Changes in presentation methods(i)

Accounting policies issued but not yet adopted“Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020 (hereinafter, “Statement No. 29”)) and Implementation
Guidance on Accounting Standard for Revenue Recognition” (ASBJ
Guidance No. 30, March 26, 2021 (hereinafter, “Guidance No.30”))

Overview

The International Accounting Standards Board (IASB) and the U.S. Financial
Accounting Standards Board (FASB) collaborated on a project to develop asingle, comprehensive revenue recognition model and jointly issued new revenue
recognition standards “Revenue from Contracts with Customers” (IFRS 15
published by IASB and Topic 606 published by FASB) in May 2014. IFRS 15 iseffective for annual reporting periods beginning on and after 1 January 2018 andTopic 606 is effective for annual reporting periods beginning after December 15,
2017.
The Accounting Standard Board of Japan (ASBJ) also developed a newrevenue recognition standard and issued Statement No. 29 together with
Guidance No. 30. ASBJ’s basic policy in developing the new revenue recognition
standard was to first incorporate the core principle of IFRS 15 in the light ofimproving the international comparability of financial statements and then add
additional alternative treatments to the extent that international comparability
would not be significantly impaired in circumstances in which business practices
in Japan need to be considered.

(Change in revenue recognition for the sale of vehicles)
Toyota Corolla Gifu Co., Ltd. and Netz Toyota Gifu Co., Ltd.,subsidiaries of the Company, have changed their methods of revenue
recognition for new and used vehicles from an installment sales method
to a more principle sales basis. This change is effective from the current
fiscal year. The catalyst for the change in accounting policy was thestrengthening of installment sales was positioned as an important measurein the formulation of “The New Medium-term Management Policy,” whichis starting from the current consolidated fiscal year, against a backgroundof the intensifying sales competition with other companies induced by
the beginning of the handling of all models on all four channels of Toyota
dealers. For vehicle sales, installment sales are becoming increasingly
important because the option to purchase vehicles with installment
payments will lead to the acquisition of new customers by proposing
purchasing methods that flexibility respond to customer requirements, suchas residual value type installment payments and deferred payments. It will
also provide an incentive for those customers to purchase from us when it istime for them to replace their vehicles. The risk of bad debts in the advancepayment method and the collection guarantee method, which are currently
the main methods handled, is extremely low, and represents an improvementin business management systems and system structure. Thus, adopting thissales standard will more accurately reflect the profit and loss situation.
As a result, compared with the figures prior to the retroactive applicationof the revised revenue recognition method, the following changes have beenmade. On the consolidated statements of income and comprehensive income
for the fiscal year ended March 31, 2020 and 2019, “Operating revenue”
decreased by ¥1,499 million and ¥1,274 million, respectively, “Operating
costs” decreased by ¥1,757 million and ¥1,261 million, respectively, both
“Operating income” and “Income before income taxes” increased by ¥258
million and decreased by ¥13 million, respectively, “Income taxes deferred”
increased by ¥87 million and decreased by ¥5 million, respectively, “Profit
attributable to owners of parent” increased by ¥171 million and decreased by¥8 million, respectively, and “Basic net income per share” increased by ¥0.85
and decreased by ¥0.04, respectively,. In addition, the beginning balance ofretained earnings for the fiscal year 2019 increased by ¥2,735 million as the
cumulative effects of the change in the accounting policy were reflected in
net assets at the beginning of the fiscal year 2019. The impact on segment
information is described in the related section.

Effective date

Effective from the beginning of the fiscal year ending March 31, 2022

Effects of application

In accordance with Paragraph 84 of the Accounting Standard for Revenue
Recognition, the Company has elected to follow the transitional treatment
provided, and the standard and guidance will become effective from the
beginning the fiscal year ending March 31, 2022, after which the Company will
add the amount of the cumulative effect of the retrospective application before
the adoption to or subtract it from the beginning balance of retained earnings forfiscal year ending March 31, 2022. In the Transportation Services Business, thetiming of revenue recognition will be changed from cargo acceptance to service
completed. The effect of the adoption on consolidated financial statements forthe year ended March 31, 2022 is expected to be immaterial.
“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019)“Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019)“Accounting Standard for Measurement of Inventories” (ASBJ Statement
No. 9, July 4, 2019)“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019)“Implementation Guidance on Disclosures about Faire Value of Financial
Instruments” (ASBJ Guidance No. 19, March 31, 2020)

Overview

In order to enhance comparability with internationally recognizedaccounting standards, “Accounting Standard for Fair Value Measurement”
and “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (together, hereinafter referred to as the “Fair Value AccountingStandards”) were developed and guidance on the methods to use for measuring
fair value was issued. The Fair Value Accounting Standards are applicable to thefair value measurement of Financial instruments in the “Accounting Standard
for Financial Instruments” and inventories held for trading purposes in the“Accounting Standard for Measurement of Inventories.”

16

(v)

Additional information(i)

Stock Compensation for Directors
The Company has introduced a Board Benefit Trust (“BBT”) for theCompany’s directors, excluding outside directors, (the “Eligible Directors”).
The objective of the plan is to focus the Eligible Directors’ mindset towards
enhancing the medium- to long-term corporate value of the Company
by clarifying the link between the compensation of the Eligible Directors

and the Company’s share value so that Eligible Directors share with theshareholders not only the benefits of rising share prices, but also the risks
associated with falling shares. The Plan is a stock compensation plan
whereby the Company’s shares are acquired through a trust (the trust set
up based on the Plan is hereinafter referred to as the “Trust”) using funds
contributed by the Company as capital, and the acquired shares and moneyin the amount equivalent to the value of the Company’s shares converted
at market value (the “Company’s Shares, Etc.”) are granted to Eligible
Directors through the Trust according to their positions or the like, pursuant
to the predetermined Rules on Stock Benefits for Directors. In principle,
the Company’s Shares, etc. are provided to Eligible Directors at the time ofretirement from a position of Eligible Director of the Company.
The shares of the Company held by the Trust were accounted for astreasury stock under net assets. The assets, liabilities, income and expensesof the Trust were consolidated in the accompanying consolidated financial
statements. The book value and number of shares held by the Trust at
March 31, 2021 and 2020 were ¥171 million ($1,541 thousand) and 87
thousand shares and ¥181 million and 91 thousand shares, respectively.
(ii) The Stock Benefit Trust ( J-ESOP)In the Company and some of its subsidiaries, for the purpose ofenhancing the motivation for rising share prices, the Employee Stock
Ownership Plan ( J-ESOP) for employees who meet the prescribed
requirements has been introduced.
The Stock Benefit Trust ( J-ESOP) is an incentive plan that grants
the Company’s shares to employees of some companies in the group thatsatisfy the requirements of the Policy on Stock Compensation prescribedin advance by the Company. These companies will award points to Eligible
Employees based on their length of service and individual degree ofcontribution and the like and will grant the number of Company’s sharesequivalent to the awarded points when the terms and conditions are met
and vested rights are granted. The shares granted to Eligible Employees,
including future shares, will be acquired using cash funds contributed inadvance to the trust account established trust & Custody Services Bank,
Ltd., and will be managed separately as trust assets.
In addition, ¥5,634 million was recorded in “Provision for share-based
remuneration” for the fiscal year ended March 31, 2020 because there
was the cost for the points awarded based on length of service by the
consolidated fiscal year ended March 31, 2019.
The shares of the Company held by the Trust were accounted for astreasury stock under net assets. The assets, liabilities, income and expensesof the Trust were consolidated in the accompanying consolidated financial
statements. The book value and number of shares held by the Trust at
March 31, 2021 and 2020 were ¥6,822 million ($61,459 thousand) and 4,731
thousand shares and ¥6,991 million and 4,848 thousand shares, respectively.

3. Financial Instruments(a) Qualitative information on financial instruments(i) Policies on financial instruments

The Seino Group has implemented a Cash Management System foreffective investments and funding. Pursuant to this system, the Company
invests in short-term, low-risk instruments in accordance with its internalfund management rules. The Company procures funds mainly throughfinancing such as bank loans and the issuance of convertible bonds forinvestments in facilities, taking immediate liquidity into consideration.

(ii) Details of financial instruments and Risks

Trade receivables are exposed to the credit risk of customers. Some of thesubsidiaries have receivables in foreign currency and are exposed to foreign
currency fluctuation risk.
Marketable and investment securities, which consist of held-to-maturity
securities and equity securities of business entities with which the Seino
Group has business relationships, are exposed to stock market fluctuationrisk.
Trade payables have general terms and conditions and are mostly due
within one year. However, some of the subsidiaries have trade payables
denominated in foreign currency, which exposes them to foreign currency
fluctuation risk.
Some bank loans and convertible bonds are used principally for capital
investments and are partially exposed to interest rate fluctuation risk.

(iii) Risk Management for Financial Instruments
Monitoring of credit risk

In accordance with internal policies for credit risk management, eachsubsidiary monitors the creditworthiness of its customers and manages
the terms and conditions of payment, due dates and remaining balances toreduce credit risk. With held-to-maturity securities, the Company invests
in bonds that have been highly rated by credit rating agencies in accordancewith its internal fund management rules. As a result, the risk is insignificant.

Monitoring market risk

The Board of the Directors regularly monitors market risk using
management methods which comply with internal market risk management
rules. For marketable securities, the Seino Group monitors market prices
every quarter and reviews the market conditions and the financial positionof and business relationship with the issuers.

Monitoring liquidity risk

The Company has a Cash Management System with its subsidiaries
and becomes the paying agent for the subsidiaries under the system.
The subsidiaries report their cash flow projections to the Company. The
Company has sufficient bank credit lines, including credit lines withoverdraft facilities, enabling the Seino Group to manage liquidity risk.

(iv) Supplemental information on fair values

The fair values of financial instruments are based on their market prices.
The fair values of financial instruments with no available market prices are
determined by using prices calculated with alternative methods. However,since certain assumptions are used in the computation of these estimates, theresults may be different if alternative assumptions are used.

(b) Fair values of financial instruments

The fair and carrying values of the financial instruments included in the
consolidated balance sheets at March 31, 2021 and 2020 other than those forwhich the fair value was extremely difficult to determine, are set forth in the tablebelow.

At March 31, 2021:
Cash and cash equivalents
Short-term investments
Trade receivables
Investment securities
Total assets

Carrying value

Fair value
Millions of yen¥

93,683
9,371
120,40237,548261,004¥

4,471
48,641¥¥

Short-term borrowings¥
Trade payables
Current portion of long-termbank loans
Convertible bonds
Long-term bank loans
Total liabilities¥

At March 31, 2020:
Cash and cash equivalents
Short-term investments
Trade receivables
Investment securities
Total assets

967
25,2508,280
87,609¥¥93,683
9,371
120,40237,548261,004¥

4,471
48,641¥967
25,775
8,156
88,010Carrying value

Fair value
Millions of yen

¥

¥

¥

Short-term borrowings¥
Trade payables
Current portion of long-termbank loans
Long-term bank loans¥
Total liabilities

93,482
16,572
119,047
30,175259,276
4,130
48,711
2,342
9,180
64,363¥¥¥Difference

93,482
16,571
119,047
30,175259,275
4,130
48,711
2,342
9,055
64,238

¥

¥

—
—
—
—
—
—
—
—
525
(124)
401
Difference

¥

¥
¥

¥

—
(1)
—
—
(1)
—
—
—
(125)
(125)

17

Carrying value
At March 31, 2021:
Cash and cash equivalents
Short-term investments
Trade receivables
Investment securities
Total assets

Fair value

Difference

Thousands of U.S. dollars$$

843,991
84,424
1,084,703
338,270
2,351,388$

40,279438,207$

Short-term borrowings$
Trade payables
Current portion of long-termbank loans
Convertible bonds
Long-term bank loans$
Total liabilities

8,712
227,477
74,595789,270$$

843,991
84,424
1,084,703
338,270
2,351,388$

40,279438,207$

8,712
232,20773,478792,883

—
—
—
—
—

$

—
—
—
4,730
(1,117)
3,613$

Notes:(1) Methods used to determine the fair value of financial instruments are as
follows:
Assets:Cash and cash equivalents
As these instruments are settled within a short term, their fair value
and carrying value are nearly identical, and their carrying values are
assumed as their fair values.
Trade receivables
The fair value of installment sales receivables is measured by the
carrying amount, which is based on the present value of future cash
flows through maturity discounted using an estimated credit risk
adjusted interest rate. The carrying amounts of trade receivables
other than installment sale receivables approximate fair value becauseof the short maturity of these instruments.
Short-term investments and investment securities
The fair value of marketable securities equals the quoted market
price, if available. The fair value of debt securities equals thequoted market price or the price provided by financial institutions.
Marketable and investment securities classified according to the
purpose for which they are held are described in Note 5.
Liabilities:
Trade payables
As trade payables are settled within a short term, their fair values
and carrying values are nearly identical, and their carrying values are
assumed as their fair values.
Short-term borrowings
As short-term borrowings are settled within a short term, their fairvalues and carrying values are nearly identical, and their carrying
values are assumed as their fair values.
Current portion of long-term bank loans
The fair value of the current portion of long-term bank loans is the
carrying value because the value is nearly the present value of future
cash flows discounted using the current borrowing rate for similar
debt of comparable maturity.
Convertible bonds
The fair value of convertible bonds is based on the price quoted by
the correspondent financial institution.
Long-term bank loans
The fair value of long-term debt is based on the present value of
future cash flows discounted using the current borrowing rate forsimilar debt of comparable maturity.
(2) The following were not included in the table above because the fair value
was extremely difficult to determine:
Millions of yen

Thousands of
U.S. dollars
2021

1,672
1,854
3,526

$

2021

2020

Carrying value:
Unlisted equity securities, otherthan those of affiliates
Investments in partnerships

18

¥
¥

¥
¥

1,470
2,918
4,388

$

15,063
16,70331,766(3) The redemption schedule for financial assets with maturities at March 31,
2021 was as follows:
Due within
1 year
At March 31, 2021:
Cash and cash equivalents ¥Short-term investments
Trade receivables
Investment securities– bonds and other¥

93,683
9,371
88,961—
192,015

Due after Due after
1 year
5 years
throughthrough
5 years
10 yearsMillions of yen

Due
after
10 years¥¥——
30,687¥116
30,803

¥

—
—
754
—
754

¥

Due after Due after
1 year
5 years
Due within
throughthrough
1 year
5 years
10 yearsThousands of U.S. dollars

At March 31, 2021:
Cash and cash equivalents $843,991
Short-term investments
84,424
Trade receivables
801,450
Investment securities—– bonds and other$ 1,729,865$——
276,460$

1,045$ 277,505

$

—
—
6,793
—
6,793

—
—
—
—
—

¥

Due
after
10 years
$

—
—
—
—
—

$

(4) For the repayment schedule for long-term bank loans at March 31, 2021,
see Note 9, “Short-term Borrowings and Long-term Debt.”(5) As stated in Note 2(u), “Summary of Significant Accounting Policies– Changes in presentation method,” the amount of “Trade receivables”
for the fiscal year ended March 31, 2020 was restated after reflecting
retroactive treatment.

4. Inventories
Inventories at March 31, 2021 and 2020 were as follows:
Millions of yen

Merchandise and finished products
Work in process
Raw materials and supplies

2021
11,335
1,492
717¥ 13,544¥

2020
11,731
1,279
768¥ 13,778¥

Thousands of
U.S. dollars
2021$ 102,117
13,441
6,460$ 122,018

5. Investments
At March 31, 2021 and 2020, short-term investments consisted of thefollowing:
Millions of yen

Marketable securities:¥
Bonds and otherTotal marketable securities
Time deposits with an original maturityof more than three months
¥

2021

600
600
8,771
9,371

2020

¥

¥

8,207
8,207
8,365
16,572Thousands of
U.S. dollars
2021
$

$

5,406
5,406
79,01884,424

At March 31, 2021 and 2020, investment securities consisted of the following:

Marketable securities:
Equity securities
Bonds
Other
Total marketable securities
Other non-marketable securities

Millions of yen

2020

Thousands of
U.S. dollars
2021

37,367112
70
37,5493,525
41,07430,122—
53
30,175
4,388
34,563$ 336,640
1,009
630
338,279
31,757$ 370,036

2021
¥

¥

¥

¥

At March 31 2020, the fair value of marketable securities classified as held-tomaturity and the related net unrealized gains were as follows:
Carrying
value
At March 31, 2020
Securities with fair value exceeding
carrying amount:
Bonds
¥
Other
Securities with fair value notexceeding carrying amount:
Bonds
Other
¥

—
—
3,000
3,000
6,000

Fair value
Difference
Millions of yen

¥

¥

—
—

¥

—
—

3,000
2,999
5,999

¥

—
(1)
(1)

¥

Marketable securities classified as available-for-sale are stated at fair value
with unrealized gains and losses excluded from current earnings and reported
as a net amount within the net assets account until realized. At March 31, 2021
and 2020, gross unrealized gains and losses for marketable securities classified asavailable-for-sale were as follows:
Gross
Gross
unrealized unrealized
gains
lossesMillions of yen

Cost
At March 31, 2021:
Equity securities
Bonds
Other
At March 31, 2020:
Equity securities
Bonds
Other

At March 31, 2021:
Equity securities
Bonds
Other

¥
¥
¥
¥

15,041
109
627
15,777¥22,561
3
43¥ 22,607¥

15,381118
2,127
17,626¥¥¥

15,294—26
15,320¥¥Fair andcarrying
value(235) ¥——
(235) ¥

37,367112
670
38,149(553) ¥
(11)—(564) ¥

30,122107
2,153
32,382Thousands of U.S. dollars$ 135,505
982
5,648$ 142,135$ 203,25227
388$ 203,667$$(2,117) $ 336,640
—
1,009
—
6,036
(2,117) $ 343,685

At March 31, 2021 and 2020 investments in and long-term loans to affiliates
and nonconsolidated subsidiaries consisted of the following:

Equity securities of affiliates andnonconsolidated subsidiaries
Investments in partnerships ofnonconsolidated subsidiaries

Millions of yen

2020

Thousands of
U.S. dollars
2021¥

15,127¥

15,238$ 136,279¥

2,738
17,865¥

1,638
16,876

24,667$ 160,946

2021

6. Property and Equipment
At March 31, 2021 and 2020, property and equipment consisted of thefollowing:
Millions of yen

2021

Property and equipment, at cost:
Land
Buildings and structures
VehiclesMachinery and equipment
Construction in progress
Other

2020

Thousands of
U.S. dollars
2021¥ 184,672 ¥ 174,108 $ 1,663,712
297,141
287,332
2,676,946
111,823
111,382
1,007,414
47,72647,748429,964
6,205
5,604
55,901
13,654
11,833123,009661,221638,0075,956,946(326,616)(322,023)(2,942,487)
Less accumulated depreciation
Total property and equipment ¥ 334,605 ¥ 315,984 $ 3,014,459

One of the consolidated subsidiaries elected to carry out a one-timerevaluation to restate the cost of land used for business operations at values
reassessed on March 31, 2002, reflecting adjustments for land shape and otherfactors based on appraisal values issued by the Japanese National Tax Agency inaccordance with the Law Concerning Revaluation of Land. According to thelaw, the excess of the original book value over the reassessed value, net of the tax
effect and minority interest portions, is recorded in net assets as land revaluation
decrement account in the accompanying consolidated balance sheets. At March
31, 2021 and 2020, the difference between the carrying values of land used forbusiness operations after revaluation over the current market values of the land at
the fiscal year-end amounted to ¥2,099 million ($18,910 thousand) and ¥2,549
million, respectively.

7. Real Estate for Rent
Some of the Company’s subsidiaries own land and facilities for rent at
locations where the business branches were closed or redeployed branches used
to be. The carrying values in the consolidated balance sheets, changes during theyears ended March 31, 2021 and 2020 and the fair values of the rental properties
were as follows:
Millions of yen

Carrying value at the beginning of year ¥Net changes during the year¥
Carrying value at the end of year
Fair value at the end of year *¥2021
17,057
1,185
18,242
26,1552020
13,956
3,101¥ 17,057¥ 22,041¥

Thousands of
U.S. dollars
2021$ 153,666
10,676$ 164,342$ 235,631

Note: * Fair value was measured at the estimated value based principally on a realestate appraisal or property tax bases.
Profit and loss recorded for rental properties for the fiscal years ended March
31, 2021 and 2020 were as follows:
Millions of yen

Operating revenue
Operating costs
Income from rental operations
Loss on disposal of rental property
and other

¥

¥

2021
1,865
378
1,487
—

¥

¥

2020
1,732
357
1,375

Thousands of
U.S. dollars
2021$ 16,802
3,406
13,396(463) $—

19

8. Asset Retirement Obligations
Asset retirement obligations are based upon estimated future restoration
obligations pursuant to office rental agreements. The asset retirement obligations
are calculated based upon the useful life designated by law or the estimated officerental period and are discounted by the yield rate of government bonds.
Asset retirement obligations for the years ended March 31, 2021 and 2020
were as follows:
Millions of yen

At the beginning of year
New consolidations
New obligations
Changes in estimated obligations
and accretion
Settlement payments
Other
At the end of year

¥

¥

2021
3,589
1
44

¥

43
(38)
(11)
3,628 ¥

2020
3,065
—
498

Thousands of
U.S. dollars
2021$ 32,333
9
397

42
(4)
(12)
3,589 $

387
(342)
(99)
32,685

9. Short-term Borrowings and Long-term Debt
At March 31, 2021 and 2020, short-term borrowings consisted of thefollowing:
Millions of yen

Unsecured bank overdrafts with interest
rates ranging from 0.269% to 1.475%¥
per annum at March 31, 2021
Secured bank overdrafts with interest rates
0.900% per annum at March 31, 2021
Short-term bank loans, secured at March
31, 2021
Short-term bank loans, unsecured withinterest rates ranging from 0.240% to6.400% per annum at March 31, 2021
¥

2021

430

2020

¥

530

Thousands of
U.S. dollars
2021
$

3,874

100

100

901

—

500

—

3,000
4,130

35,504$ 40,279

3,941
4,471

¥

At March 31, 2021, the Company and certain subsidiaries had unsecured
overdraft agreements with 11 banks. Under the agreements, the Company andthe subsidiaries were entitled to withdraw up to ¥37,630 million ($339,009
thousand). The Company and the subsidiaries were not obligated to pay
commitment fees on the unused portions of the overdraft facilities.
At March 31, 2021 and 2020, long-term debt consisted of the following:
Millions of yen

Zero coupon convertible bonds due
March 2026, including unamortizedpremiums ( ¥250 million ($2,252
thousand) at March 31, 2021)
Loans from government agencies andbanks, repayable through 2035, withinterest rates ranging from 0.600% to5.650% per annum at March 31, 2021:
SecuredUnsecured
Capitalized lease obligations
Less current portion

20

2021

¥

25,250

2020

¥

8,478
768
9,982
44,478(2,187)¥ 42,291 ¥

—

9,298

Thousands of
U.S. dollars
2021

$

849
7,852
17,999(2,342)
15,657 $

227,477

76,3796,919
89,928400,703(19,703)
381,000

At March 31, 2021 and 2020, respectively, the following assets were pledged
as collateral for certain long-term debt:
Millions of yen

Thousands of
U.S. dollars
2021

3,261
1,007
1,355
1,133

$

2021
Land
Buildings and structures
Cash and deposits
Shares of subsidiaries and associates
Long-term loans receivable fromsubsidiaries and associates

¥

2020

¥

3,261
1,087
1,232
1,133

350

550

29,379
9,072
12,207
10,207
3,153

The aggregate annual maturities of long-term debt as of March 31, 2021 wereas follows:Year ending March 31,
2022
2023
2024
2025
2026
Thereafter

Millions of yen
¥
2,187
8,934
1,168
889
25,7485,302¥
44,228

Thousands of U.S.
dollars$
19,70380,486
10,522
8,009
231,964
47,766$398,450

10. Commitment Line Agreement
Consolidated subsidiary Kanto Transportation Co., Ltd. had a commitmentline agreement of ¥1,000 million ($9,009 thousand) and ¥2,000 million as ofMarch 31, 2021 and 2020, respectively, to ensure its access to financing. The
Company also had a commitment line agreement of ¥50,000 million ($450,450
thousand) as of March 31, 2021. In addition, Kanto Transportation Co., Ltd.’soutstanding balance of borrowings under the agreement was ¥500 million on
March 31, 2020.

11. Financial Covenants
Consolidated subsidiary Kanto Transportation Co., Ltd. is a party to a
syndicated loan agreement and commitment line agreement that includes thefollowing financial covenants.
1. The operating loss on a consolidated basis of Kanto Transportation Co.,
Ltd. before amortization of goodwill is allowed on the profit and loss
statement for the two consecutive years as of the previous fiscal year at
March 31, 2017 or later.
2. The amount of equity (except subscription rights to shares, noncontrollinginterests and deferred gains and losses on hedges) on the balance sheets
on a consolidated basis of Kanto Transportation Co., Ltd. is required tobe equal to or greater than 80% of equity on the balance sheet as of theprevious fiscal year at March 31, 2017 or later.
Remaining balances of debt were as follows:
Millions of yen

Short-term borrowings
Current portion of long-term debt
Long-term debt

2021
¥
—
800
7,500
¥ 8,300

2020
¥
500
800
8,300
¥
9,600

Thousands of
U.S. dollars
2021
$
—
7,207
67,568$ 74,775

12. Employee Retirement Benefits
The Company and its subsidiaries have mainly unfunded defined benefit
plans with rules and regulations determined by the Company and each subsidiary.
In addition, some subsidiaries have Smaller Enterprise Retirement Allowance
Mutual Aid or Specific Retirement Allowance Mutual Aid. Also, the Company
and certain subsidiaries have defined contribution plans from this fiscal year.
Other subsidiaries have funded defined benefit plans. One company belongs
to a comprehensive employee pension fund for the defined benefit corporate
pension plan. One company has established a retirement benefit payment trust.
Some of the consolidated subsidiaries have joined a multi-employer welfare
pension fund plan. Those for which it is impossible to calculate in a rationalmanner the amount of the pension assets which corresponds to the amount of
the contributions are accounted for in the same way as the defined contribution
pension plan. The retirement benefit obligation of certain subsidiaries wascalculated using the simplified method as permitted by the accounting standard
for employee retirement benefits.
As of and for the year ended March 31, 2021 and 2020, defined benefit plans,
including plans applying the simplified method were as follows:(a) Movements in retirement benefit obligation:
Thousands of
U.S. dollars
2021
2020
2021
¥ 84,213 ¥ 82,281 $ 758,676
4,347
4,324
39,162
193
189
1,739
537
463
4,838
(3,382)(3,467)(30,469)
(52)
419
(468)
(4)
4
(36)
¥ 85,852 ¥ 84,213 $ 773,442(d) Net periodic retirement benefit expenses, including plans applying thesimplified method:
Thousands of
U.S. dollars
2021
2020
2021
Service cost
¥ 4,347 ¥4,324 $
39,162
Interest cost
193
189
1,739
Amortization of actuarial differences
1,406
1,487
12,667
(71)
(173)
(640)
Amortization of past service cost
5,875 ¥
5,827 $ 52,928
Net periodic retirement benefit expenses ¥Millions of yen(e) Retirement benefit adjustment included in other comprehensive income,before tax effects:
Millions of yen

Past service cost
Actual differences
Total balance

2021
2020
19 ¥
592
(972)
1,215
¥
(953) ¥
1,807¥

Thousands of
U.S. dollars
2021
$
171
(8,757)$(8,586)

Millions of yen

At the beginning of year
Service cost
Interest cost
Actuarial differences
Benefits paid
Past service cost
OthersAt the end of year(f ) Retirement benefit adjustment in accumulated other comprehensive
income, before tax effects:
Thousands ofMillions of yen
U.S. dollars
2021
2020
2021
Past service cost yet to be recognized ¥(442) ¥
(461) $
(3,982)
Actuarial differences yet to be recognized
7,488
8,459
67,459Total balance¥
7,046 ¥
7,998 $ 63,477(g) Plan assets(i) Plan assets comprise:(b) Movements in plan assets:
Thousands of
U.S. dollars
2021
2020
2021
At the beginning of year¥
4,429 ¥
6,809 $
39,901
Actuarial differences
103(2,240)928
Contributions paid by the employer
2
2
18
(121)
(142)
(1,090)Benefits paid¥
4,413 ¥
4,429 $
39,757At the end of year
Millions of yen(c) Reconciliation from retirement benefit obligation and plan assets toemployee retirement benefit asset or liability:
Thousands of
U.S. dollars
2021
2020
2021
Funded retirement benefit obligation ¥7,853 ¥
7,500 $ 70,748
Plan assets(4,413)(4,429)(39,757)
3,440
3,071
30,991
Unfunded retirement benefit obligation
77,99976,713702,694
Net employee retirement benefit liability ¥ 81,439 ¥ 79,784 $ 733,685
Millions of yen

Employee retirement benefit liability
Employee retirement benefit asset
Net employee retirement benefit liability ¥81,439—81,439¥79,784—79,784

733,685—$ 733,685

Cash and cash equivalents
Bonds
Equity securities
Total*

2021
12%
1%
87%
100%

Percent

2020
15%
1%
84%
100%

Note: * For the fiscal years ended March 31, 2021 and 2020, the assets of the retirement
benefit payment trust constituted 98% and 99% of total plan assets, respectively.
(ii) Long-term expected rate of return
Current and target asset allocations, historical and expected returns on
various categories of plan assets have been considered in determining
the long-term expected rate of return.
(h) Actuarial assumptions
The principal actuarial assumptions (expressed as weighted averages):
Discount rate (mainly)
Long-term expected rate of return

2021
0.1%
0.0%

2020
0.1%
0.0%

(i) Defined contribution plan
Required contributions to the contribution plans of the Company and certain
consolidated subsidiaries were ¥312 million ($2,811 thousand) and ¥241 million
for the years ended March 31, 2021 and 2020, respectively.

2113. Contingent Liabilities

16. Consolidated Statements of Cash FlowsAt March 31, 2021 and 2020, the Seino Group was contingently liable fortrade notes and discount notes endorsed to affiliates and third parties and forguarantees, including substantial guarantees, principally of indebtedness of third
parties in the aggregate amount of ¥1,002 million ($9,027 thousand) and ¥1,205
million, respectively.

14. Lease Commitments
As lessee, the Seino Group has entered into various rental and leaseagreements for land and buildings to be used for truck terminals and warehouses
that are generally cancelable with a few months advance notice, except for certain
operating lease agreements. The aggregate minimum future lease payments forsuch noncancelable operating lease agreements, including the imputed interest
portion, as lessee at March 31, 2021 and 2020 were as follows:

Operating leases:
Due within one year
Due after one year

Millions of yen

Thousands of
U.S. dollars
2021

1,032
8,388
9,420

$

2021
¥
¥

2020

¥
¥

965
7,829
8,794

9,297
75,568$ 84,865

A certain subsidiary engaged in leasing operations as lessor enters into
various lease agreements with third parties principally for vehicles. The leases
are categorized as operating leases. At March 31, 2021 and 2020, the aggregate
future minimum lease commitments to be received for such non-cancelable leaseagreements, including the imputed interest, were as follows:

Operating leases:
Due within one year
Due after one year

Millions of yen

Thousands of
U.S. dollars
2021

393
2,754
3,147

$

2021
¥
¥

2020

¥
¥

391
2,978
3,369

$

3,540
24,811
28,351

15. Net Assets
Under the Japanese Corporate Law (the “Law”) 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 Law, in cases in which a dividend distribution of surplus ismade, the smaller of an amount equal to 10% of the dividend or the excess, ifany, of 25% of common stock over the total of additional paid-in capital andlegal earnings reserve must be set aside as additional paid-in capital or legal
earnings reserve. Legal earnings reserve is included in retained earnings in theaccompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital could be
used to eliminate or reduce a deficit by a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as
dividends. All additional paid-in capital and all legal earnings reserve may betransferred to other capital surplus and retained earnings, respectively, which arepotentially available for dividends.
At March 31, 2021 and 2020, capital surplus consisted principally of
additional paid-in capital. In addition, retained earnings included legal earnings
reserve of the Company in the amount of ¥4,262 million ($38,396 thousand) at
March 31, 2021 and 2020.
The maximum amount that the Company can distribute as dividends is
calculated based on the non-consolidated financial statements of the Company inaccordance with Japanese laws and regulations.
During the year ended March 31, 2021, the Company paid interim dividendsof ¥11 per share, amounting to ¥2,060 million ($18,559 thousand). In addition,at the annual shareholders’ meeting held on June 24, 2021, the shareholders
approved cash dividends of ¥16 per share, amounting to ¥2,997 million ($27,000
thousand). The appropriation had not been accrued in the consolidated financial
statements as of March 31, 2021 as such appropriations are recognized in the
period in which they are approved by the shareholders.

22

During the year ended March 31, 2019, stock subscription rights were
exercised, and the related convertible bonds were converted to common stock
without any cash settlement. Details of the movement resulting from the exerciseof the stock subscription rights are as follows:
Millions of yen
2019Gain on disposal of treasury stock
Decrease in treasury stock
Decrease in convertible bonds

¥

1,619
4,232
5,851

17. Income Taxes
The tax effects of temporary differences that give rise to a significant portionof deferred tax assets and liabilities at March 31, 2021 and 2020 were as follows:
Millions of yen

2021

2020

Thousands of
U.S. dollars
2021

Deferred tax assets:
Employee retirement benefit liability ¥ 28,356 ¥ 27,794 $ 255,460
Enterprise tax accruals
394
532
3,550
Accrued bonuses
4,039
4,139
36,387
Intercompany capital gains
1,301
1,220
11,721
Operating loss carryforwards
811
642
7,306
Loss on assets transferred
1,807
1,675
16,279Impairment loss on fixed assets
12,20812,274
109,982
Allowance for doubtful accounts
202
205
1,820
6,854
7,287
61,748
Other
55,972
55,768504,253(15,096)(14,774)(136,000)
Less valuation allowance
40,87640,994368,253
Deferred tax liabilities:
Deferred capital gains
8,599
8,488
77,469Unrealized gains on available-forsale securities
6,447
4,412
58,081
Valuation adjustments for
11,214
11,460101,027
consolidation
Employee retirement benefit asset
—
—
—
3,701
3,825
33,342
Other
29,961
28,185269,919¥ 10,915 ¥ 12,809 $
98,334
Net deferred tax assets
Note: As stated in “Note 2(u), “Summary of Significant Accounting Policies –Changes in presentation method,” amounts for the fiscal year ended March
31, 2020 were restated after reflecting retroactive treatments.
In assessing the realizability of deferred tax assets, management of the Seino
Group considers whether some portion or all of the deferred tax assets will not
be realized. The ultimate realization of deferred tax assets is dependent upon
the generation of the future taxable income during the periods in which those
temporary differences become deductible. At March 31, 2021 and 2020, a
valuation allowance was provided to reduce deferred tax assets to the extent thatthe management believed that the amount of the deferred tax assets was notrealizable.
The reconciliation of the statutory tax rate and the effective tax rate for theyears ended March 31, 2021 and 2020 was as follows:Percentage of pretax
income
2021
2020
29.9%
29.9%

Japanese statutory tax rate
Increase (decrease) due to:Permanently nondeductible expenses
Tax exempt income
Local minimum taxes - per capita levy
Amortization of goodwill
Equity in net income of affiliates
Changes in valuation allowance
Different tax rates applied to the consolidated
subsidiaries
Tax credit for salary growth
Other
Effective income tax rate

0.2
(0.5)
2.6
1.9
(0.5)
1.3

0.3
(0.2)
1.8
1.4
0.0
(2.0)

4.2
—
(0.1)
39.0%

4.4
(0.0)
0.0
35.6%

Amounts reclassified to net income (loss) in the current period that wererecognized in other comprehensive income in the current or previous periods andthe tax effects for each component of other comprehensive income for the years
ended March 31, 2021, 2020 and 2019 were as follows:
Thousands of
U.S. dollars
2021

Millions of yen

2021
2020
2019
Net unrealized gains on availablefor-sale securities:
Increase (decrease) during the year ¥ 8,453 ¥ (4,090) ¥ (2,250) $ 76,153(1,034)300(450)(9,315)
Reclassification adjustments
Subtotal, before tax
7,419(3,790) (2,700)
66,838(2,036)996
735(18,343)
Tax effectSubtotal, net of tax
5,383(2,794)(1,965)48,495Retirement benefit adjustment:(Decrease) increase during the year
Reclassification adjustments
Subtotal, before tax
Tax effectSubtotal, net of tax

(51)
—
(51)
—
(51)

2021

45
—
45
—
45

Millions of yen

(382)
1,335
953
(326)
627

Acquisition of equity interest in subsidiary
The Board of Directors meeting held August 7, 2020 determined that theCompany Group purchase all of the shares of Kanto Transportation Co., Ltd.
from Karita Kanto limited partnership, etc., because the joint holding period had
expired.
1. Overview of transaction(1) Name and business description of acquired company
Name of acquired company: Kanto Transportation Co., Ltd.
Description of business: Transportation services(2) Date on which business combinations was effectAugust 27, 2020
(3) Legal form of equity combination
Acquisition of equity interest from noncontrolling shareholders(4) Name of company after business combination
Kanto Transportation Co., Ltd.

18. Comprehensive Income

Foreign currency translation
adjustments:(Decrease) increase during the year
Reclassification adjustments
Subtotal, before tax
Tax effectSubtotal, net of tax

19. Business Combinations

(53)
—
(53)
—
(53)

(459)
—
(459)
—
(459)

2. Overview of accounting treatment
The acquisition will be accounted for as a transaction with noncontrollingshareholders under common control, based on ASBJ Statement No. 21,“Accounting Standard for Business Combinations” and ASBJ GuidanceNo. 10, “Guidance on Accounting Standard for Business Combinations
and Accounting Standard for Business Divestitures,” issued on September
13, 2013.
3. Details to be reported in the acquisition of equity interest in subsidiary
The acquisition price is not disclosed due to the confidentiality obligationof the contract.
4. Details about change in shareholders’ equity by transaction with
noncontrolling shareholders(1) Main reason for change in capital surplus
Acquisition of equity interest in subsidiary(2) Amount of decrease in capital surplus due to transaction with
noncontrolling shareholders ¥2,124 million

Thousands of
U.S. dollars
2021

2020

2019

(3,122)
1,315(1,807)629(1,178)

934
1,368
2,302
(789)
1,513

(3,441)
12,027
8,586(2,937)
5,649

(245)
(11)
(256)
(761) $

(658)
135
(523)
53,162

Shares of other comprehensive
income of affiliates accounted forusing equity method:
Decrease during the year
(73)
(88)
15
(4)
Reclassification adjustments
Subtotal(58)(92)
Total other comprehensive income ¥ 5,901 ¥ (4,019) ¥(5) Other matters with regard to transactionThe voting right ratio will be
100% by acquiring additional shares with a voting right ratio of 50%.

23

20. Segment Information(a)

General information about reportable segments

(b)
(c)

The reportable segments are constituent business units of the Seino Group for which separate financial information is obtained and examined regularly by the Board of
Directors to evaluate business performance. The Seino Group has established the “Business Promotion Department” as a holding company. Each subsidiary plans and operates
each business under its control. In addition, some of the subsidiaries engage in real estate leasing services to make good use of their facilities. Therefore, the Seino Group consistsof business segments that are based on the business conducted by each subsidiary. The Seino Group’s reportable segments are “transportation services,” “vehicle sales,” “merchandise
sales” and “real estate leasing services.”

Basis of measurement about reportable segment profit or loss, segment assets and other material items

The principles of segment accounting are basically the same as those described in Note 2, “Summary of Significant Accounting Policies.” Intersegment sales and transfer
amounts are based on market prices.

Information about reportable segment profit or loss, segment assets and other material items

Information about reportable segment for the years ended March 31, 2021, 2020 and 2019 is summarized as follows:

For the year 2021:
Operating revenue:
External customers
Intersegment sales and transfers
Total operating revenue
Segment income (*2)

Transportation
services¥¥

Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted forusing the equity method
Increase in tangible and intangible
fixed assets
For the year 2020:
Operating revenue:
External customers¥
Intersegment sales and transfers
Total operating revenue
Segment income (*2)¥
Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted forusing the equity method
Increase in tangible and intangible
fixed assets
For the year 2019:
Operating revenue:
External customers¥
Intersegment sales and transfers
Total operating revenue
Segment income (*2)¥

Vehicle sales(*5)

Real estateleasing services

Other (*4)

Total

Adjustments(*1)

Consolidated

441,091 ¥1,852
442,943
18,375 ¥98,334 ¥10,025
108,359
4,781 ¥

31,034 ¥14,64745,681732 ¥Millions of yen
1,865 ¥
19,722 ¥
—
8,918
1,865
28,6401,495 ¥
486 ¥

513,548 ¥17,973
1,409

121,051 ¥1,939
115,772 ¥64—

19,083 ¥99—

50,396 ¥702
229

719,850 ¥
20,777
1,639

14,785

78

—

—

—

14,863(1)

14,86234,811

3,945

69

1,749

641

41,215(634)

40,581

466,473 ¥2,458
468,931
23,339 ¥509,749 ¥
17,8901,407

103,165 ¥10,488113,653
4,611 ¥
117,624 ¥1,873
132,868 ¥18,79051,658871 ¥
15,498 ¥60—

1,732 ¥—
1,732
1,383 ¥
17,305 ¥83—

21,389 ¥16,25137,640688 ¥
49,270 ¥698
228

625,627 ¥47,987
673,61430,892 ¥709,446 ¥
20,604
1,636— ¥(47,987)(47,987)(1,195) ¥(54,913) ¥(406)—

625,627—625,627
29,697654,533
20,198
1,636

14,521

43

—

—

—

14,564(2)

14,562

26,602

4,581

130

3,496

1,281

36,090(573)

35,517462,459 ¥2,301
464,760
24,475 ¥504,189 ¥
16,9501,273

100,960 ¥
11,247112,207
4,838 ¥
118,845 ¥
1,761
1

33,518 ¥21,49155,009829 ¥
15,672 ¥50—

1,651 ¥—
1,651
1,334 ¥
13,752 ¥84—

18,574 ¥15,871
34,445902 ¥
49,637 ¥529
163

617,162 ¥
50,910668,072
32,378 ¥702,095 ¥
19,374
1,437— ¥(50,910)(50,910)(1,182) ¥(45,249) ¥(373)—

617,162—
617,162
31,196
656,846
19,001
1,437

—

—

—

15,106(2)

15,104

Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted for
15,06442
using the equity method
Increase in tangible and intangible
33,398
4,652
fixed assets
Transportation Vehicle sales
services(*5)
For the year 2021
Operating revenue:
External customers$ 3,973,792 $ 885,892
Intersegment sales and transfers
16,68590,315
Total operating revenue
3,990,477
976,207
Segment income (*2)$ 165,540 $
43,072
Segment assets (*3)
$ 4,626,559
Depreciation
161,919
Amortization of goodwill
12,694
Investments in affiliates accounted forusing the equity method
133,198
Increase in tangible and intangible
313,612
fixed assets

24

Merchandise
sales

118

Merchandise
sales

$

20

Real estateleasing services

1,779
Other (*4)

592,046 ¥
35,442
627,488
25,869 ¥— ¥(35,442)(35,442)(1,308) ¥592,046—
592,046
24,561(47,602) ¥(425)—

672,248
20,352
1,639

39,967
Total

Thousands of U.S. dollars
16,802 $177,676 $ 5,333,748 $—
80,342319,297
16,802
258,018
5,653,045
13,469 $4,378 $ 233,054 $(526)

Adjustments(*1)

39,441
Consolidated$

279,586 $
131,955
411,541
6,595 $

— $ 5,333,748(319,297)—(319,297)
5,333,748(11,784) $ 221,270$ 1,090,549 $
17,4689142,090 $577—

171,919 $
892
—

703

—

—

—

133,901(9)

133,892

35,540622

15,757

5,775

371,306(5,712)

365,594454,018 $ 6,485,135 $ (428,847) $ 6,056,288
6,324
187,180(3,829)183,351
2,063
14,766—
14,766

Note: *1) The adjustments column in the table above represents principally the elimination of intersegment transactions and balances, except for (*2) and (*3).
*2) Segment income is reconciled to operating income in the accompanying consolidated statements of income. Segment income in the adjustments column represents unallocated general corporate
expenses which were not assigned to specific reportable segments, net of intersegment transactions.
*3) Segment assets in the adjustments column represent unallocated general corporate items which were not assigned to specific reportable segments, including items such as cash and short-term andlong-term investments in securities, net of intersegment balances.
*4) Other segment represents the business segment not included in the reportable segments and includes the information services business, the housing sales business, the passenger transportation
business and other business.
*5) As described in “Note 2(u), “Summary of Significant Accounting Policies – Changes in presentation method,” consolidated subsidiaries Toyota Corolla Gifu Co., Ltd. and Netz Toyota Gifu Co.,
Ltd. previously recognized revenue primarily by an installment sales method. Effective from the current fiscal year, the revenue recognition method was changed to a more principle sales basis.
As a result of this change, compared with figures prior to the retroactive application, net sales and segment income (loss) for the previous fiscal year changed as follows: in Vehicle sales, “Operating
revenue External customers” decreased by ¥1,499 million, and “Segment income” increased by ¥258 million. In addition, “Segment assets” decreased by ¥2,120 million. Moreover, net sales andsegment income (loss) for the fiscal year 2019 changed as follows: in Vehicle sales, “Operating revenue External customers” decreased by ¥1,274 million, and “Segment income” decreased by ¥13
million. In addition, “Segment assets” decreased by ¥1,137 million.

(d)Related Information(i)

Information about products and services
The Company has not disclosed information about products and services here because the Company has disclosed the same information above.
(ii) Information about geographic areas
Operating revenue
The Company has omitted the disclosure of operating revenue by geographic area because operating revenue to external customers in Japan accounts for more than 90%of the amount of operating revenue reported in the consolidated statements of income.
Property and equipment
The Company has omitted the disclosure of property and equipment by geographic area because property and equipment in Japan account for more than 90% of theamount of property and equipment reported in the consolidated balance sheets.
(iii) Information about major customers
The Company has not disclosed information about major customers because no customer contributed 10% or more to operating revenue in the consolidated statements
of income.
(iv) Information on impairment loss by reportable segments:
Impairment loss:
For the year 2021
For the year 2020
For the year 2019
Impairment loss:
For the year 2021

Transportation
services

Vehicle sales

Merchandise
sales

¥

— ¥
129
869

54 ¥
80
302

$

— $

486 $

Real estateleasing services

Millions of yen
— ¥
—
—

Other

Total

— ¥
66
28

— ¥
267
37

54
542
1,236

Thousands of U.S. dollars
— $
— $

— $

486

(v) Information on goodwill by reportable segments:
For the year 2021
Amortization of goodwill

Transportation
services¥

As of March 31, 2021
Balance of goodwill
For the year 2020
Amortization of goodwill¥

As of March 31, 2020
Balance of goodwill
For the year 2019
Amortization of goodwill¥

As of March 31, 2019
Balance of goodwill
For the year 2021
Amortization of goodwill$

Merchandise
sales

1,410 ¥

1 ¥10,9711

1,407 ¥

Real estateleasing services

Millions of yen
— ¥

Other

Total

— ¥

228 ¥

1,639

—

—

508

11,480

1 ¥

— ¥

— ¥

228 ¥

1,636

12,355

2

—

—

737

13,094

1,273 ¥

1 ¥

— ¥

— ¥

163 ¥

1,437

13,762

3

—

—

865

14,630

Vehicle sales

Merchandise
sales

Real estateleasing services

Transportation
services

As of March 31, 2021
Balance of goodwill

Vehicle sales

12,703 $Thousands of U.S. dollars
9 $
— $
— $

98,838

9——

Vehicle sales

Merchandise
sales

Real estateleasing services

Other

Total

2,054 $

14,766

4,576

103,423(iv) Information on gain on negative goodwill by reportable segments:
Gain on negative goodwill:
For the year 2021
For the year 2020
For the year 2019
Gain on negative goodwill:
For the year 2021

Transportation
services

¥

— ¥
—
—

Transportation
services

$

— $

— ¥
—
—
Vehicle sales

Millions of yen— ¥——Merchandise
sales

Other

— ¥
—
—

Real estateleasing services

Thousands of U.S. dollars
— $
— $
— $

Total

— ¥
—
88
Other

—
—
88
Total

— $

—

25

Report of Independent Auditors
Independent Auditor’s Report
To the Board of Directors of
SEINO HOLDINGS CO., LTD.:
OpinionWe have audited the accompanying consolidated financial statements of SEINO HOLDINGS CO., LTD. (“the Company”)
and its consolidated subsidiaries (collectively referred to as “the Group”), which comprise the consolidated balance sheets as
at March 31, 2021 and 2020, and the consolidated statements of income, statements of comprehensive income, statements ofchanges in net assets and statements of cash flows for each of the years in the three-year period ended March 31, 2021, 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, 2021 and 2020, and its consolidated financial performance and its consolidated
cash flows for the years then ended in accordance 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 thosestandards 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 Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated 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 to provide 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 the context 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.
Testing of the effectiveness of IT controls relevant to recognizing the motor truck transportation revenue

26

The key audit matter

How the matter was addressed in our audit

As described in Note 21, “Segment Information” to thefinancial statements, operating revenue from transportation
services provided to external customers for the current fiscal
year was ¥441,091 million. The motor truck transportation
revenue of Seino Transportation Co., Ltd., the core companyof the Transportation Services Business group, accounted
for 49% of the operating revenue. Based on transportation
contracts, the motor truck transportation revenue isrecognized in a consistent manner on the basis of cargo
acceptance.

For a series of data, we obtained an understanding of
the information flow, data processing and automatedinternal controls within the IT system from the beginningof a transaction to the recognition of the motor truck
transportation revenue with the assistance of IT specialists
within our firm.
In addition, we tested the effectiveness of certain internal
controls required for stable operation of the IT system.
Furthermore, we performed the procedures set forth below by
involving IT specialists within our firm to test the operating
effectiveness of certain significant internal controls:While each transportation transaction amount is small in the
motor truck transportation business, a large volume is traded
every day, and the motor truck transportation revenue, whichis the consideration of those transactions, is recognizedbased on the data processed and recorded by the system. In
calculating freight charges, which provided the basis for the
motor truck transportation revenue, detailed conditions are
determined for each customer by distance or direction, orby weight, and then complicated calculations are performed
based on the conditions.
As described above, recognition of the motor freighttransportation revenue is highly dependent on the IT system
and may have a significant effect on financial reporting if
there are defects or failures in the system, or data is notprocessed as expected. We, therefore, determined that
our testing of the effectiveness of IT controls relevant torecognizing the motor truck transportation revenue was of
most significance in our audit of the financial statements forthe current fiscal year, and accordingly, a key audit matter.

• We tested the operating effectiveness of certain internal
controls to prevent unintended changes or falsification ofprograms and data within the system;• In order to test the operating effectiveness of application
controls for the automatic calculation of freight charges, werecalculated the freight charges for a sample of transactions
by distance or direction, or by weight, and assessed theaccuracy of data processing through the IT system; and• In order to test the operating effectiveness of application
controls relevant to the automatic calculation of the total
amount of daily freight charges by store location andautomatic recognition of the motor truck transportation
revenue, we recalculated a sample of journal entries thatwere recorded automatically and assessed the accuracy ofdata processing through the IT system.

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 withaccounting 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 asa going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally
accepted in Japan and using the going concern basis of accounting 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 frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee 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 to influence 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 andmaintain professional skepticism throughout the audit. We also:27

• 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, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that 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 or conditions 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’s report 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’sreport. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance withaccounting standards generally accepted in Japan, the overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervisionand performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, the planned
scope and timing of the audit, 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 have complied 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 where applicable, related safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors we determine those mattersthat 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.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2021
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 the consolidated financial statements.

28

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

Hiroyuki Kato
Designated Engagement Partner
Certified Public Accountant

Shigeki Kondo
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Nagoya Office, Japan
September 30, 2021

29

Seino GroupThe Seino Group consists of Seino Holdings Co., Ltd. and 82 consolidated subsidiaries, 1 nonconsolidated subsidiary,and 20 affiliates. The Seino Group operates in five business segments: transportation services, vehicle sales, merchandise
sales, leasing for real estate services and other services. The business relationship in the Seino Group is as follows.

Clients
Collection and
Delivery

VehiclesSales and Repairs

Sales

Services

Real Estate
Leasing

Domestic Transportation

Vehicle Sales

Merchandise Sales

Leasing for Real Estate

Seino Transportation Co., Ltd.
*1
Hokkaido Seino Transportation Co., Ltd. *1
Tohoku Seino Transportation Co., Ltd. *1
Kobaun Co., Ltd.
*1
Niko warehouse Co., Ltd.
*1
Kanto Seino Transportation Co., Ltd.
*1
Seino Super Express Co., Ltd.
*1
Kanagawa Seino Transportation Co., Ltd. *1
Izu Seino Transportation Co., Ltd.
*1
Nohi Seino Transportation Co., Ltd.
*1
Tokai Seino Transportation Co., Ltd.
*1
Mie Seino Transportation Co., Ltd.
*1
Hinomaru Seino Transportation Co., Ltd. *1
Shikoku Seino Transportation Co., Ltd. *1
Kyushu Seino Transportation Co., Ltd. *1
Okinawa Seino Transportation Co., Ltd. *1
Seino Tsu-un Transportation Co., Ltd.
*1
Seino Express Co., Ltd.
*1
Seino Hikkoshi Co., Ltd.
*1
Seino Tokyo Express Co., Ltd.
*1
Seino Hokuriku Express Co., Ltd.
*1
Seino Nagoya Express Co., Ltd.
*1
Seino Osaka Express Co., Ltd.
*1
Seino ST Service Co., Ltd.
*1
S&N Logistics Co., Ltd.
*1
Toyo Co., Ltd.
*1
Katsunuma Transportation Co., Ltd.
*1
Darumaya Transportation Co., Ltd.
*1
Central Logistics Co., Ltd.
*1
Eco Alliance Co., Ltd.
*1
COCONET CO., LTD.
*1
GENie Co., Ltd.
*1
INTENTS Inc.
*1
LIVING PRO-SEED, INC.
*1
ASAHI CONPOU CO., LTD.
*1
Kanto Transportation Co., Ltd.
*1
Osaka Kosoku Nyuhai Corporation*1
KCS Co., Ltd.
*1
Izumikawa Transportation Co., Ltd.
*1
Showa Reizo Co., Ltd.
*1
Saitama Seino Transportation Co., Ltd. *2
Tokyo Seino Transportation Co., Ltd.
*2
Mikawa Seino Transportation Co., Ltd.
Ensyu Seino Transportation Co., Ltd.
Kumamoto Seino Transportation Co., Ltd.

Toyota Corolla Gifu Co., Ltd. *1
Gifu Hino Motor Co., Ltd. *1
Netz Toyota Gifu Co., Ltd. *1
Asahi Enterprise Co., Ltd. *1
Jms Gifu Co., Ltd.
*1
Shiga Hino Motor Co., Ltd. *1
Seino Auto Service Kanto Co., *1
Ltd.
Seino Auto Lease Co., Ltd. *1
Tokyo Sharyou Co., Ltd.
*1
Unicla Jiko Co., Ltd.
*1
Subic GS Auto, Inc.
*1
KILTON SEINO HOLDING Co., Ltd. *2

Seino Trading Co., Ltd. *1
Seino Sangyo Co., Ltd. *1

Seino Transportation Co., Ltd.
OthersMarchandise
sales

Leasing forReal Estate Services

VehicleSales

Information Services
Seino Information
Service Co., Ltd.

*1

Japan Logistics
Development Co.,
Ltd.

*1

OthersInternational Transportation
Seino Logix Co., Ltd.
*1
United-Seino Transportation(Malaysia) Sdn. Bhd.
*1
Seino Customs Clearance Service Co., Ltd. *1
Seino(Thailand) Co., Ltd.
*1
Seino Saha Logistics Co., Ltd. *1
PT Seino Indomobil Logistics Services *1
Seino Super Express USA, Inc. *1
Hankyu Hanshin Express Co., Ltd.
*2
Schenker-Seino Co., Ltd.
*2
PT Seino Indomobil Logistics *2
REX Logistics Co., Ltd.
SIRACHA TRANSPORT CO., LTD.
Tango Seino Transportation Co., Ltd.
Box Charter Co., Ltd.
Gifu Truck Kogyo Co., Ltd.
Aishin Sangyo Co., Ltd.
Ogaki School Lunch Support Co., Ltd.
LOCCO Co., Ltd.

Transportation
Services

Suito Travel Co., Ltd. (Passenger transportation, Travel agency) *1
Seino Engineering Co., Ltd. (Construction)*1
Seino Family Co., Ltd. (Insurance agency service)*1
Seino Staff Service Co., Ltd. (Personnel service)*1
Toyota Home Gifu Co., Ltd. (Housing sales)*1Asahi Create Co., Ltd. (Comprehensive printer), Advertising agency *1
Seino Business Support Co., Ltd. (Business support services) *1
Seino Ecotrading Inc. (Wholesale of recycled resources)*1
Nihon Oroshiuri Shiire Network Co., Ltd. (Collection agency) *1
Seino Financial Co., Ltd. (Settlement service representative) *1
Shin-ota Taxi Co., Ltd. (Taxi)*1
Kani Taxi Co., Ltd. (Taxi)*1
Tajimi Taxi Co., Ltd. (Taxi)*1
Shorei Fit Co., Ltd. (Ice making)*1
Seino Maintech Co., Ltd. (Equipment maintenance)*1
VECTORONE Inc. (EC support)*1
Seino Driving School Co., Ltd. (Driving school)*1
Futaba Kogyosho Co., Ltd. (Pipe work)*1
Fuze Co., Ltd. (Pipe work)*1
Moe Agrifarm Co., Ltd. (Agriculture, Sales)*1
Logistics Innovation Fund*3
Toyota Rent-A-Lease Gifu Co., Ltd. (Rental and lease)
Gifu Automotive Dealer Plaza Co., Ltd. (Rental office)Eparksweets Inc. (EC support)

OthersSeino Holdings Co., Ltd.

30

Note *1: Consolidated subsidiaries
82*2: Affiliates (under the equity method)
6*3: Nonconsolidated subsidiaries
1
Companies except those mentioned above are affiliates under the cost method. 14

Seino Holdings Co., Ltd.
1, Taguchi-cho, Ogaki, Gifu 503-8501 , Japan