Summary of Consolidated Financial Results for the Second Quarter Ending of the Fiscal Year June 30, 2024 [Based on IFRS]
February 8, 2024
Company name: ZERO CO., LTD.
Stock code:
9028
URL: http://www.zero-group.co.jp/
Representative:
President & CEO
Takeo Kitamura
Inquiries:
Director and Manager of Group Strategies Headquarters
Toshihiro Takahashi
Scheduled Date of Submission of Quarterly Report:
February 9, 2024
Scheduled date to commence dividend payments:
March 11, 2024
Preparation of supplementary material on quarterly financial results:
No
Holding of quarterly financial results meeting:Yes (For analysts)

Stock Exchange Listing: Tokyo
TEL 044-520-0106(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the second quarter ending of the fiscal year June 30, 2024 (From July 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Sales revenue

Operating income

Profit before tax

Quarterly income

Profit attributable toequity shareholdersof the company
Millions%of yenMillions ofyen%Millions ofyen%Millionsof yen%Millions ofyen%

2Q FY2023/2024

64,399

0.2

2,328

8.7

2,338

9.2

1,503

4.1

1,469

2Q FY2022/2023

64,247

38.4

2,143

59.4

2,141

57.0

1,444

76.8

1,436

Basic quarterly earnings per share
2Q FY2023/2024

Total comprehensive
income of the quarter
Millionsof yen

%

2.3

1,510

8.6

74.7

1,390

57.5

Diluted quarterly earnings per share

Yen

Yen

87.04

87.03

2Q FY2022/2023
85.30
85.29
(Note) The provisional accounting treatment for business combinations was finalized in the third quarter of the fiscal year ending June 2023. The figures for the second
quarter of the fiscal year ending June 2023 reflect the finalization of provisional accounting treatment.
(2) Consolidated financial position
Total assets

Equity ratio attributable toequity shareholders of thecompany

Equity attributable to equity
shareholders of the company

Total capitalMillions of yen

Millions of yen

Millions of yen%

2Q FY2023/2024

61,97834,77034,18655.2

FY2022/2023

56,55833,83633,28558.9

2. Cash dividends
1st quarter-end

Annual dividends per share
3rd quarter-end

2nd quarter-end
Yen

Yen

FY2022/2023

---

15.00

FY2023/2024

---

15.00

Fiscal year-end

Yen

---

FY2023/2024(forecast)

Total
Yen

Yen

36.00

51.00

36.90

51.90

(Note) Amendment from the most recently announced dividend forecast: No
3. Forecast of consolidated financial results for the year ending June 30, 2024 (From July 1, 2023 to June 30, 2024)

Sales revenue

Full year

Operating income(Percentages indicate year-on-year changes)
Profit attributable toequity shareholders
Basic earnings per shareof the company

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

121,000

△8.9

5,200

2.5

5,200

2.4

3,500

1.8

207.64(Note) Revisions from the most recently released business forecast: Noø(Note)(1) Changes in significant subsidiary companies during the current quarter (Changes in the specific subsidiary companies following changes in the scope of
consolidation):No
New ¾ Co. (Company name),
Exclusions ¾ Co. (Company name)(2) Changes in accounting policies, changes in accounting estimates Changes in the accounting policies required by IFRS Changes in the accounting policies due to other reasons Changes in the accounting estimates(3) Number of issued shares (common shares)
 Total number of issued shares at the end of theperiod (including treasury shares)
 Number of treasury shares at the end of the period
 Average number of shares during the period(total up to this quarter)

:
:
:

No
No
No

2Q FY2023/2024

17,560,242 shares

FY2022/2023

2Q FY2023/2024

920,782 shares

FY2022/2023

2Q FY2023/2024

16,884,539 shares

2Q FY2022/2023

17,560,242 shares
956,982 shares
16,839,303 sharesøEarnings summary is not within the scope of the quarterly review by a certified public accountant or auditorøExplanation of the proper use of financial results forecast and other notes
The earnings forecast, and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that theCompany considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors such as economic status of the majordomestic and international markets or exchange rates fluctuation.

Attached Documents – Table of Contents

1. Qualitative information on the quarterly financial results .................................................................................................... 2(1) Explanation regarding the operating results .................................................................................................................. 2(2) Explanation regarding financial position and cash flow ................................................................................................. 4(3) Explanation on future forecast information, such as consolidated earnings.................................................................. 5
2. Summary of the consolidated financial statements and major notes ................................................................................. 6(1) Summary of quarterly consolidated statement of financial position............................................................................... 6(2) Summary of quarterly consolidated profit and loss statement ....................................................................................... 8(3) Summary of the quarterly consolidated comprehensive income statement .................................................................. 9(4) Summary of the quarterly consolidated statement of changes in equity ..................................................................... 10(5) Summary of the quarterly consolidated statement of cash flows .................................................................................11(6) Notes regarding summary of the quarterly consolidated financial statements ............................................................ 13(Notes on going concern assumption)........................................................................................................................... 13(Segment information) ................................................................................................................................................... 14(Business Combination) ................................................................................................................................................ 15(Important subsequent events)...................................................................................................................................... 16―1―

1. Qualitative information on the quarterly financial results(1) Explanation regarding the operating results
Japan's economy during the consolidated cumulative period of the second quarter has been gradually picking up
and even recovering, although affected by the slowdown in the pace of overseas economies and rising prices.
In the domestic automobile market, the total number of new vehicles sales increased to 110.1% (statistical data of
the Japan Automobile Manufacturers Association) as compared to the consolidated cumulative period of the samequarter from the previous year (hereinafter referred to as the same quarter from the previous year). The recovery
trend continued in the second quarter of the current consolidated cumulative period, as finished vehicle manufacturers
made progress in clearing backlogs of orders. The number of used vehicle registrations and sale increased to 104.1%
compared to the same period of the previous year due to the recovery in new vehicle sales.
Revenues increased mainly in the automobile-related businesses. Operating profits increased mainly in theoverseas related businesses and the general cargo business.
As a result, the business results of our group are as follows: sales of 64,399 million yen (100.2% compared to thesame quarter from the previous year) and operating profit of 2,328 million yen (108.7% compared to the same quarter
from the previous year). Also, the profit before taxes was 2,338 million yen (109.2% compared to the same quarter
from the previous year), and the profit of the quarter attributable to the equity shareholders of the company was 1,469
million yen (102.3% compared to the same quarter from the previous year).
Number of units related to domestic distribution of automobiles
Units: vehicles
July of 2022 to December of July of 2023 to December of Compared to theDomestic
2022
2023
previous year
Number of new vehicles
sold
Domestic manufacturer*1
1,989,325
2,202,824
110.7％(out of this, Nissan Motor)*1(220,844)(229,968)(104.1％)

Foreign manufacturer*2

125,818

125,66299.9％

2,115,143

2,328,486

110.1％*3

1,672,409

1,750,931

104.7％*4

1,301,515

1,344,866

103.3％

2,973,924

3,095,797

104.1％

Total of new vehicle sales
Number of registered used
cars
Registered vehicles
Light vehicles
Total number ofvehicles registered

used

July of 2022 to December of July of 2023 to December of Compared to the
2022
2023
previous year

ExportNew vehicles of domestic
manufacturers*1

2,080,620

2,399,257

115.3％

Used vehicles (registeredvehicles)*5

631,523

776,353

122.9％*1 Calculated from Japan Automobile Industry Association Statistics
statistics*2 Calculated from Japan Automobile Importers’ Association*3 Calculated from Japan Automobile Dealers Association statistics*4 Calculated from Japan Mini Vehicles Association statistics*5 Trial calculated from the number of export deleted registered vehicles in theJapan Automobile Dealers Association statistics―2―

The segment business results are as follows.
(1) Domestic automotive related businesses
For vehicle transportation, which is the core business, the number of units for transportation contracts for used
vehicles increased in line with the recovery in used vehicle registrations and sales, despite the turmoil in the used
vehicle industry, resulting in an overall increase in revenues in the domestic automobile-related business.
Segment profit decreased due to higher marine transportation costs, an increase in recruitment and labor costs as aresult of an increase in the ratio of active job openings to active job applicants for drivers following the end of the COVID19 pandemic and an increase in hourly wage rates in response to the rise in the consumer price index and minimum
wage, and an increase in vehicle expenses due to investment in transportation equipment in anticipation of the transition
to electric vehicles.
As a result, the overall sales in the domestic automotive related businesses was 29,131 million yen (104.9%
compared to the same quarter from the previous year), and the segment profit was 2,089 million yen (95.6% comparedto the same quarter from the previous year).
In the vehicle transportation business, the Group will continue to implement the “Digitalization”, “Greening”, and “Newnormal” policies outlined in our mid-term management plan through June 2024.
In the area of "Digitalization", we have set up the Transportation Digitalization Promotion Office and are promoting
the construction of a system to realize systematic allocation of vehicles. We have also launched and are promoting a
new digitalization project in which crew members record the condition of vehicles received from customers using tablets.
In the area of “Greening”, we have completed the development of transportation equipment with an increased
maximum loading capacity to cope with the increased weight of automobiles as they become more electrically powered,and we will sequentially introduce the equipment. In addition, with the rapid adoption of EVs, we are promoting theeatablishment of building an infrastructure that includes the implementation of ancillary services in EV vehicletransportation.
In response to the "New Normal", the direction of the Ministry of Health, Labour and Welfare's revision of the
Improvement Standards Notice has been set, we will reduce indirect time other than operation hours by promoting asystem of division of labor in cargo handling while maintaining the operation hours of crew members toward the "Year2024 Problems", and at the same time, we will promote new hiring of crew members and efficient operation oftransportation equipment. However, in the midst of the chronic shortage of crew members, combined with risingconsumer price indexes, minimum wages, and unit labor costs, it is necessary to maintain and improve compensation
while reducing the total working hours of crew members, and to introduce new crew members and transportationequipment to compensate for the decrease in transportation capacity due to reduced total working hours.
(2) Human resource businesses
In the pickup service business, revenue increased due to the acquisition of new contracts and an increase in thenumber of vehicles in the MaaS (Mobility as a Service) business for J:COM (JCOM Co., Ltd.). In the temporary staffing
business, revenue increased due to an increase in the number of dispatched drivers, and in the airport-related business,revenue increased due to an increase in the number of dispatched personnel in line with the recovery in the number offlights to and from Japan. Segment profit decreased due to the start-up costs of the driver recruitment portal site
“wnten.com” and increases in recruitment and labour costs due to the rise in the consumer price index and minimum
wage.
As a result, the sales revenue of the overall human resource business was 10,771 million yen (104.7% compared tothe same quarter from the previous year), and the segment profit was 339 million yen (92.4% compared to the samequarter from the previous year).
(3) General cargo businessIn the port cargo handling business, revenue from fuel cargo handling for biomass power plants increased due toacquisition of cargo handling for new power plants, but revenues in the transport / warehousing business decreased
due to the withdrawal of unprofitable customers, and revenue in the overall general cargo business decreased as well.
Segment profit increased with the increased revenue in the port cargo business, and there was also an increase in theoverall general cargo business.
As a result, the sales revenue of the overall general cargo business was 3,281 million yen (99.5% compared to the―3―same quarter from the previous year), and the segment profit was 668 million yen (117.9% compared to the samequarter from the previous year).
(4) Overseas Related Businesses
In the used vehicle export business, revenue decreased due to restrictions on the number of used cars exported to
Malaysia as the capacity of car carrier ship was limited as a result of brisk exports of new vehicles from Japan against
the depreciation of the yen. In the CKD business, revenue increased due to an increase in the number of packaging
units, and in the vehicle transportation business in China, revenue increased due to acquisition of new customers.
Segment profit increased as a result of cost reductions and cost pass-through. In addition, the CKD business posted
an increase in profit due to an increase in revenue, while the vehicle transportation business in China posted an increasein profit thanks to the successful acquisition of new customers.
As a result of the above, the sales revenue of the overall overseas business was 21,215 million yen (92.7% comparedto the same quarter from the previous year), and segment profit was 371 million yen (173.9% compared to the samequarter from the previous year).
Furthermore, the company expenses not included in the abovementioned report segment (expenses affiliated withour company’s management division), etc. are allocated as an item in the "adjustment amount" as indicated in "2.
(Segment information) in the summary of the quarterly consolidated financial statements and major notes", and totalled
1,140 million yen.
(2) Explanation regarding financial position and cash flow
(1) Status of assets, liabilities, and equity(Assets)
Current assets increased by 4,132 million yen (15.9%) compared to the end of the previous consolidated fiscal
year to 30,164 million yen.
This was mainly due to an increase in cash and cash equivalents of 3,129 million yen.
Non-current assets increased by 1,287 million yen (4.2%) compared to the end of the previous consolidated fiscal
year to 31,813 million yen.
This was mainly due to an increase of 1,289 million yen in goodwill.
As a result, total assets increased by 5,419 million yen (9.6%) compared to the previous consolidated fiscal year
to 61,978 million yen.
(Liabilities)
Current liabilities increased by 4,039 million yen (22.2%) compared to the end of the previous consolidated fiscal
year to 22,240 million yen.
This was mainly due to an increase of 6,743 million yen in borrowings, despite a decrease of 1,247 million yen inlease liabilities.
Non-current liabilities increased by 445 million yen (9.8%) compared to the end of the previous consolidated fiscal
year to 4,967 million yen.
This was mainly due to an increase of 122 million yen in deferred tax liabilities and 226 million yen in bonds andborrowings.
As a result, total liabilities increased by 4,485 million yen (19.7%) compared to the end of the previous consolidated
fiscal year to 27,207 million yen.
(Equity)
Total equity increased by 934 million yen (2.8%) compared to the end of the previous consolidated fiscal year to
34,770 million yen.
This was mainly because retained earnings increased by 872 million yen.
(2) Cash flow status
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the consolidated accounting period of
the second quarter increased by 3,129 million yen compared to the end of the previous consolidated fiscal year to
8,604 million yen.

―4―Each cash flow status category during the consolidated cumulative period of the second quarter and their causes
are as follows.
(Cash flow from operating activities)
Funds obtained as a result of operating activities were 1,604 million yen (there was an income of 2,842 million yen
during the same period of the previous year).
The main cause of the increase in funds were 2,533 million yen for depreciation and amortization expenses which
are non-fund expenses and 1,503 million yen in quarterly income; the main cause of the decrease in funds was 1,201
million yen increase in income taxes.
(Cash flow from investment activities)
Net cash used in investment activities was 2,862 million yen (expenditures of 1,051 million yen during the same
period of the previous year).
The main itemization breakdown for expenditures was 1,072 million yen for acquisition of tangible fixed assets andinvestment property and 1,655 million yen for the acquisition of shares of subsidiaries resulting in a change in thescope of consolidation.
(Cash flow from financing activities)
Net cash obtained from financing activities was 4,390 million yen (expenditures of 1,673 million yen during thesame period of the previous year).
The main itemization breakdown for expenditures was 1,486 million yen in repayment of lease liabilities, while themain itemization breakdown for income was 6,600 million yen net increase in short-term borrowings.
(3) Explanation on future forecast information, such as consolidated earnings
We have not made any amendments to the consolidated earnings forecast announced on August 10, 2023.

―5―

2. Summary of the consolidated financial statements and major notes(1) Summary of quarterly consolidated statement of financial position
End of the previous
consolidated accounting year
(June 30, 2023)(Units: Million yen)
End of the consolidated
accounting period of thissecond quarter(December 31, 2023)

AssetsCurrent assets
Cash and cash equivalents

5,475

8,604

Trade and other receivables

14,843

15,331Inventories

4,730

5,294

Other financial assets

469

431

Other current assets

514

501

26,03230,164

Tangible fixed assets

20,743

20,164

Goodwill and intangible assets

3,378

4,942

Investment properties

3,020

3,031

533

521

1,939

1,874

Other non-current assets

433

849

Deferred tax assets

478

428

Total non-current assets

30,526

31,813

Total assets

56,55861,978

Total current assets
Non-current assets

Investment accounting processed with equity
methodOther financial assets―6―

End of the previous
consolidated accounting year
(June 30, 2023)(Units: Million yen)
End of the consolidated
accounting period of thissecond quarter(December 31, 2023)

Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

9,077

8,207

Loans

1,600

8,343

Lease liabilities

3,132

1,884

Income taxes payable, etc.

1,283

780

Other financial liabilities－

2

Other current liabilities

3,106

3,021

18,20022,240

－

226

2,563

2,240

Other financial liabilities

89

99

Retirement benefits liabilities

655

1,024

Other non-current liabilities

313

353

Deferred tax liabilities

899

1,022

Total non-current liabilities

4,522

4,967

Total liabilities

22,722

27,207

Capital

3,390

3,390

Capital surplus

3,461

3,459

Treasury stock

△638

△614

644

650

26,42627,29933,28534,186550

584

Total Equity

33,836

34,770Total liabilities and equity

56,55861,978

Total current liabilities
Non-current liabilities
Bonds and borrowings
Lease liabilities

EquityOther components of funds
Retained earnings
Total equity attributing toshareholders of the company

theequityNon-controlling interest―7―(2) Summary of quarterly consolidated profit and loss statement(Units: Million yen)
Consolidated cumulative
period for the previous
second quarter(From July 1, 2022 to
December 31, 2022)
Sales

Consolidated cumulative
period of this second
quarter(From July 1, 2023 to
31 December 2023)

64,24764,399

Cost of sales△57,187△56,869

Gross profit

7,059

7,530

△5,034△5,392Other income

157

208

Other expenses

△39

△17

2,143

2,328

28

30

Financial expenses

△27

△21

Investment gain / loss through equity method

△3

0

2,141

2,338

△696

△834

1,444

1,503

1,436

1,469

8

34

1,444

1,503

Basic quarterly earnings per share (yen)

85.30

87.04

Diluted quarterly earnings per share (yen)

85.29

87.03

Selling, general and administrative expenses

Operating profit
Financial profit

Profit before tax
Corporate income tax expenses
Profits of the quarter

Attribution of the profits of the quarter:
Equity shareholders of the company
Non-controlling interest
Profits of the quarter

Quarterly earnings per share―8―(3) Summary of the quarterly consolidated comprehensive income statement(Units: Million yen)
Consolidated cumulative
period for the previous
second quarter(From July 1, 2022 to
31 December 2022)
Profits of the quarter

Consolidated cumulative
period of this second quarter(From July 1, 2023 to
31 December 2023)

1,444

1,503

△61

40

72

△61

11

△21

△103

△1

37

29

△65

27

△54

6

1,390

1,510

Equity shareholders of the company

1,418

1,476

Non-controlling interest

△27

33

Comprehensive income of the quarter

1,390

1,510

Other comprehensive income
Items not transferring over to profit or loss:
Remeasurement of defined benefit system
Financial assets measured by fair value throughother comprehensive profits
Total of the items not transferring over to profit orloss

Items which may be transferred over to profit or loss
Conversion difference of business activities
overseas
Other comprehensive income equity of affiliatedcompany accounted for by the equity method
Total of the items which may be transferred overto profit or loss

Other comprehensive income after tax deduction
Comprehensive income of the quarter

Attribution of the comprehensive income for thequarter:―9―(4) Summary of the quarterly consolidated statement of changes in equity
Consolidated cumulative period for the previous second quarter (from July 1, 2022 to December 31, 2022)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2022

CapitalCapitalsurplus

3,390

3,458

Total equity
Financial
Nonattributing toassetscontrolling Total Equity
Conversion
Remeasure
Treasury
Retained the equity
measuredinterest
difference ofment of Total otherstock
earnings shareholder
by fair value
businessdefined components
s of thethrough
activities
benefitof funds
company
otheroverseas
systemcomprehens
ive profits
△667

155

288

－

Profits of the quarter
Other
comprehensive
incomeComprehensive incomeof the quarter

－

－

－

△54

23,44030,067546

30,614

－

1,436

1,436

8

1,444

△17

△36

△54

△27

1,390

△29

72

△61

△17

△29

72

△61

△17

1,436

1,418

－

△376

△376

△376

11

11
－

Dividends of the surplus
Share-based
paymenttransactions, etc.
Transferfrom
othercapital component to
Retained earnings
Total transactions, etc.
with the owners
Balance on December 31,
2022

444

65

－
△0

61

60

△60

－

－

△54

65

－

△0

61

60

△436

△364

－

△364

3,390

3,404

△601

126

360

－

486

24,44031,121518

31,640Consolidated cumulative period of this second quarter (from July 1, 2023 to December 31, 2023)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2023

CapitalCapitalsurplus

3,390

3,461

Total equity
Financial
Nonattributing toassetscontrolling Total Equity
Conversion
Remeasure
Treasury
Retained the equity
measuredinterest
difference ofment of Total otherstock
earnings shareholders
by fair value
businessdefined componentsof thethrough
activities
benefitof funds
company
otheroverseas
systemcomprehens
ive profits

△638

172

472

－

Profits of the quarter
Other
comprehensive
incomeComprehensive incomeof the quarter

－

－

－

△2

26,42633,285550

33,836

－

1,469

1,469

34

1,503

7

△0

6

33

1,510

28

△61

40

7

28

△61

40

7

1,469

1,476

－

△597

△597

△597

21

21
－

Dividends of the surplus
Share-based
paymenttransactions, etc.
Transferfrom
othercapital component to
Retained earnings
Total transactions, etc.
with the owners
Balance on December 31,
2023

644

24

－
39

△40

△0

0

－

－

△2

24

－

39

△40

△0

△596

△575

－

△575

3,390

3,459

△614

201

449

－

650

27,29934,186584

34,770―10―

(5) Summary of the quarterly consolidated statement of cash flows(Units: Million yen)
Consolidated cumulative
period for the previous
second quarter(From July 1, 2022 to
December 31, 2022)

Consolidated cumulative
period of this second
quarter(From July 1, 2023 to
December 31, 2022)

Cash flow from operating activities
Profits of the quarter

1,444

1,503

Depreciation and amortization costs

2,449

2,533

Interest income and dividend

△28

△29

Interest expense

21

19

Investment gain / loss through equity method

3

△0

696

834

△187

△123

△1,146

△561

△457

△330

△10

△2

Other

867

△1,047

Subtotal

3,651

2,796

28

29

Interest paid

△21

△19

Corporate income tax paid

△816

△1,201

Cash flow from operating activities

2,842

1,604

△990

△1,072

4

36

△64

△276

Expenditures from acquisition of investments in
subsidiaries resulting in change in scope of
consolidation－△1,655

Other

△0

104

△1,051△2,862

Corporate income tax expenses
Increase / decrease of trade receivables (△ is anincrease)
Increase / decrease of inventories (△ is anincrease)
Increase / decrease of trade payables(△ is a decrease)
Increase / decrease in net defined benefit asset andliability

Interest and dividend received

Cashflow from investment activities
Payment for acquisition of tangible fixed assets andinvestment properties
Proceed from sales of tangible fixed assets andinvestment properties
Payment for intangible assets

Cashflow from investment activities―11―(Units: Million yen)
Consolidated cumulative
period for the previous
second quarter(From July 1, 2022 to
December 31, 2022)

Consolidated cumulative
period of this second
quarter(From July 1, 2023 to
December 31, 2023)

Net increase or decrease of short-term loans (△ isa decrease)

221

6,600

Repayment of long-term loans

△15

△25

－

△100

△1,503△1,486△376△597△1,673

4,390

△74

△2

43

3,129

5,180

5,475

5,224

8,604

Cash flow from financing activities

Redemption of Bonds
Repayment of lease debts
Dividend paid
Cash flow from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase / decrease in of cash and cash equivalents(△ is a decrease)
Cash and cash equivalents at the beginning of theyear
Balance of cash and cash equivalents at the end of
the quarter―12―(6) Notes regarding summary of the quarterly consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.

―13―

(Changes in Presentation)(Summary of quarterly consolidated cash flow statements)
From the first quarter of the current consolidated cumulative period, “Increase / decrease in retirement benefits
liabilities”, which was included in “Other” under “Cash flow from operating activities” in the second quarter of the previous
consolidated cumulative period, has been combined with the previous “Increase / decrease in retirement benefits
liabilities” and presented as “Increase / decrease net defined benefit asset and liability” to improve the clarity of thepresentation. To reflect this change in presentation, the condensed quarterly consolidated financial statements for thesecond quarter of the previous fiscal year have been reclassified.
As a result, 10 million yen presented in “Other” under “Cash flow from operating activities” in the condensed quarterly
consolidated statements of cash flows for the second quarter of the previous fiscal year has been reclassified as“Increase / decrease in net defined benefit asset and liability” under “Cash flows from operating activities”.

(Segment information)
The segment information of our group is as follows.
Consolidated cumulative period for the previous second quarter (from July 1, 2022 to December 31, 2022)(Units: Million yen)
Total amount
Domestic
on theHumanOverseas
Adjustment
automotive
General cargo
quarterly
resource
RelatedTotalamountrelatedbusinesses
consolidated
businesses
Business(Note) 1
businesses
financialstatements
Sales
Sales from
customers

external

Sales between segments
Total

27,767

10,291

3,297

22,89164,247－64,247

65

532

49

－

647

△647

－

27,833

10,824

3,346

22,89164,895△647

64,247

Segment profit (operating
2,186
366
567
213
3,334
2,143
△1,190profit)(Note) 1. The △1,190 million yen adjustment amount in the segment profits includes the total company cost △1,190
million yen. The total company cost is an expense related to the management divisions of our company notbelonging to the reporting segment.
2. In the previous fiscal year, the provisional accounting treatment for the business combination was finalized,
and the amounts for the previous second quarter consolidated cumulative period has been reflected.
Consolidated cumulative period of this second quarter (from July 1, 2023 to December 31, 2023)(Units: Million yen)
Total amount
Domestic
on theHumanOverseas
Adjustment
automotive
General cargo
quarterly
resource
RelatedTotalamountrelatedbusinesses
consolidated
businesses
Business(note)
businesses
financialstatements
Sales
Sales from
customers

external

Sales between segments
Total

29,131

10,771

3,281

21,21564,399－64,399

62

634

50

－

746

△746

－

29,193

11,405

3,332

21,215

65,146△746

64,399Segment profit (operating
2,089
339
668
371
3,469
2,328
△1,140profit)(Note). The △1,140 million yen adjustment amount in the segment profits includes the total company cost △1,140 million
yen. The total company cost is an expense related to the management divisions of our company not belonging to
the reporting segment.

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(Business Combination)
Consolidated cumulative period for the previous second quarter (from July 1, 2022 to December 31, 2022)
There are no applicable matters.
Consolidated cumulative period of this second quarter (from July 1, 2023 to December 31, 2023)
On November 1, 2023, our Group acquired 100% of the shares of So-ing Co., Ltd. and made it a subsidiary.
(1) Outline of the Business Combination(1) Name and business of the acquired company
Name of acquired company: So-ing Co., Ltd.
Business Operations: Vehicle transportation, Auto Auction Site Operations, etc.
(2) Acquisition date:November 1, 2023
(3) Percentage of voting equity interest acquired:
100%(4) Reasons for the business combination
With the aim of becoming a comprehensive logistics company and service provider in the automobile distribution
industry, our Group has been expanding its automobile-related businesses and human resource business in addition
to our original vehicle transportation business, and now we welcome So-ing Co., Ltd., which operates vehicletransportation business and auto auction site operation business, to our group. In the vehicle transportation business,with the 2024 problem just around the corner, it is imperative to maintain and secure transportation capacity by
reducing the total working hours of crew members and improving transportation efficiency. Taking this acquisition ofshares as an opportunity, we will realize improvement in transportation efficiency through the flexible use of cargoes.
In the auto auction business, by combining the operational know-how of So-ing Co., Ltd. with the infrastructure andresources of our Group, we will expand the market share of this business and uncover new needs in anticipation of
the EV market, thereby maximizing the corporate value of our Group.
(5) Method of acquiring control of the acquired company:
Acquisition of equity interest in exchange for cash(2) Fair value of acquisition consideration, assets acquired and liabilities assumed as of the acquisition date
(Units: Million yen)
Fair value of acquisition consideration

2,856

Fair value of assets acquired and liabilities assumed
Cash and cash equivalents

1,200

Trade and other receivables

259

Other current assets

79

Tangible fixed assets

1,211

Intangible fixed assets

0

Other non-current assets

50

Current liabilities

867

Non-current liabilities

367

Fair value (net amount) of assets acquired and liabilities assumed

1,566

Goodwill

1,289

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As of the end of the current consolidated fiscal year, the amount of goodwill generated, the amount of assets acquired
and liabilities assumed on the date of the business combination are under examination to identify the identifiable assets
and liabilities on the date of the business combination. As the allocation has not been completed, provisional accounting
has been applied.
The main components of goodwill are synergies with existing businesses and excess earning power expected to arise
from the acquisition, which do not individually meet the recognition criteria. None of the recognized goodwill is expected
to be deductible for tax purposes.
(3) Acquisition-related expenses
Acquisition-related expenses for this business combination was 89 million yen and is included in "Selling, generaland administrative expenses" in the summary of quarterly consolidated profit and loss statement.
(4) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition△2,856

Cash and cash equivalents held by the acquired company at the time of acquisition

1,200

Expenditures from acquisition of investments in subsidiaries resulting in change inscope of consolidation△1,655(5) Impact of the business combination on the Group's performance
Assuming that the business combination was implemented at the beginning of the current consolidated accounting
year, the impact on the Group’s business performance for the current consolidated fiscal year is immaterial and is notdisclosed.
(Important subsequent events)
On January 11, 2024, a fire broke out at our Kawasaki logistics center, causing damage to the warehouse area leased toexternal customer.
Part of the first floor of the building was damaged by this fire. Regarding the damage, the outlook for recovery, and theimpact on future business activities, etc, are currently under investigation, and it is currently difficult to reasonably estimate
the amount of losses related to this fire.

―16―