Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2020 [Based on IFRS]
August 6, 2020
Company name: ZERO CO., LTD.
Stock Exchange Listing: Tokyo
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
TEL 044-520-0106
Scheduled Date of Ordinary General meeting of Shareholders:
September 29, 2020 Scheduled date to commence dividend payments: September 30, 2020
Scheduled Date for the Submission of Annual Securities Report: September 30, 2020
Preparation of supplementary material on financial results:
No
Holding of financial results meeting:No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the fiscal year ended June 30, 2020 (From July 1, 2019 to June 30, 2020)(1) Consolidated operating results (cumulative)
Sales revenue

FY2019FY2018(Percentages indicate year-on-year changes)

Operating income

Profit before tax

Net Income

Profit attributable toequity shareholdersof the company

Total comprehensive
income of the fiscal
year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

89,501
90,228

∆0.8
10.9

3,675
3,305

11.2
∆19.7

3,679
3,294

11.7
∆19.5

2,387
1,663

43.5
∆21.3

2,374
1,658

43.2
∆22.1

2,375
1,264

87.9
∆43.9

Basic earnings of thisyear per share

Diluted earnings of this year
per share

Yen

Yen

%

%

%

FY2019142.30141.98

9.9

8.8

4.1

FY2018

99.74

99.58

7.3

8.5

3.7

(Reference) Investment gain / loss through equity method;

Profit ratio attributable toTotal capital profit ratio
before tax

equity shareholders of thecompany

FY2019: 56 million yen,

Sales revenue operating
profit ratio

FY2018: 32 million yen(2) Consolidated financial position
Total assets

Total capital

Equity attributable to equity
shareholders of thecompany

Equity ratio attributable
to equity shareholders of
the company

Equity per share
attributable to equity
shareholders of thecompany

Millions of yen

Millions of yen

Millions of yen%

Yen

FY201944,51424,894

24,86455.9

1,490.16

FY201839,55423,072

23,05658.3

1,386.68(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen
FY20196,538
FY2018Cash flow from investing
activities
Million yen

Cash flow from financing
activities
Million yen△2,067△3,157

Cash and cash equivalents at endof yearMillion yen
4,779△2,402

△438

3,465

1,033

2. Cash dividends
Annual dividends per share
1st quarterend

2nd quarterend

Yen

3rd quarterend

Yen

Fiscal yearend

Yen

Total dividends(Total)

Total

Dividend
payout ratio(consolidated)

Equity dividend
ratio attributable
to equity
shareholders of
the company(consolidated)

Yen

Yen

Million yen%%

FY2018FY2019

-----

4.00
15.00

-----

20.90
20.60

24.90
35.60

419
581

25.0
25.0

1.8
2.4

FY2020 (forecast)

---

15.00

---

19.50

34.50

---

3. Forecast of consolidated financial results for the year ending June 30, 2021 (From July 1, 2020 to June 30, 2021)

Sales revenue
Full year

Millions of yen
81,000Operating income%∆9.5

Millions of yen
3,600

%
△2.1

(Percentages indicate year-on-year changes)
Profit attributable to equity
shareholders of the
Basic earnings per sharecompany

Profit before tax
Millions of yen
3,580

%
△2.7

Millions of yen
2,300

%
△3.1

Yen
137.84

ø(Note)(1) Changes in significant subsidiary companies during the current fiscal year (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 reasons other than ① :YesNo Changes in the accounting estimates: Yes(Note) For details, please refer to the attached page. See “3. Summary of Consolidated Financial Statements and Major Notes, (6) Notes regarding Summary ofConsolidated Financial Statements (Changes in Accounting Policy), (Changes in Accounting Estimates)” on page 11-12.
(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 year)

FY201917,560,242 shares

FY201817,560,242 shares

FY2019FY20191,018,869 shares
16,685,873 shares

FY2018FY20181,030,369 shares
16,626,874 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2020 (From July 1, 2019 to June 30, 2020)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2018FY2019Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

55,51356,266

∆1.3
5.1

1,522
3,132

∆51.4
∆28.2

1,513
1,809

Basic earnings per share

Net Income% Millions of yen
∆16.4
∆63.5

881
331

%
165.7
∆90.0

Diluted earnings per share

FY2019

Yen
53.32

Yen
-

FY201820.08-(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY201933,673
20,917FY201833,97020,713(Reference) Company’s Equity
FY2019: 20,917 million yen

Equity ratio
%
62.1
61.0
FY2018: 20,713 million yen

Net assets per shareyen
1,264.59
1,253.12øEarnings summary is not within the scope of audit by a certified public accountant or auditorøExplanation of the proper use of financial results forecast and other notes
1. The earnings forecast, and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that
the Company considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors such as economic status of the
major domestic and international markets or exchange rates fluctuation.
2. At our company, business management is conducted on a consolidated basis; therefore, individual business results forecasts are not created.

o Attached Documents – Table of Contents
1.

Summary of operating results

2(1) Summary of operating results of the current fiscal period

2(2) Summary of financial position of the current fiscal period

4(3) Summary of cash flows of the current fiscal period

4(4) Future outlook

5

2.

Basic view on selection of accounting standards

53.

Consolidated financial statements and major notes

6(1) Consolidated statement of financial position

6(2) Consolidated statement of profit or loss

8(3) Consolidated statement of profit or loss and other comprehensive income

9(4) Consolidated statement of changes in equity

10(5) Consolidated statement of cash flows

11(6) Notes on consolidated financial statements

13(Notes on going concern assumption)

13(Changes in accounting policy)

13(Changes in accounting estimate)

14(Additional Information)

15(Segment information)

15(Information per share)

17(Significant subsequent events)

17

－ 1 －

1.

Summary of operating results(1) Summary of operating results of the current fiscal period
Japan’s economy during this accounting period of consolidation continued to recover gradually up to thesecond half-yearly consolidated cumulative period; individual consumption also improved with a steady
employment and income environment, but the consolidated cumulative period of the third quarters getting
affected by the massive spread of the COVID-19 infection and it is facing downward pressure of the background.
The future economic situation remains unclear as a weak movement is seen in the individual consumption.
Even in the domestic automotive market, the total number of new vehicles sales decreased by 87.8%(statistical data of the Japan Automobile Manufacturers Association) as compared to the consolidated cumulative
period of the same quarter from the previous year (hereinafter referred to as the same quarter from the previousyear). The first quarterly consolidated cumulative period ratio to the same period of the previous year stood at
108.1% for the first quarterly consolidated cumulative period due to rush demand prior to the rise in
consumption tax , there was a massive reduction in the second quarterly consolidated cumulative period ratio tothe same period of the previous year stood at 83.7% due to the reaction to the rush demand and the impact ofnatural disaster. The third quarterly consolidated cumulative period ratio to the same period of the previous year
stood at 89.8 % due to the effect of the COVID-19 infection in addition to continuation of decline in motivationof consumption due to the rise in tax therefore 2-digit reduction continues at two consecutive quarters. For the
fourth quarterly consolidated cumulative period, the quarterly consolidated cumulative period ratio to the same
period of the previous year dropped to 68.2 %, as the Japanese government declared a state of emergency andpeople refrained from going out of their homes. The number of registered used cars has continued with thesame trend. However, this has stopped at slight reduction of quarterly ratio of 98.0% as compared to theprevious year.
During the fourth quarterly consolidated cumulative period when the impact of the COVID-19 infection was
significant, the number of vehicles transported and pre-delivery inspected dropped due to the depression of newvehicle sales; in addition export volumes were suppressed due to the impact of the lockdown in Malaysia, themain destination of the used car export business. Human resource business was also affected by the terminationof the temporary staffing contracts.
As a result, the business results of our group are as follows: sales revenue of 895.1 million yen (99.2%
compared to the same quarter from the previous year) and operating profit of 3,675million yen (111.2%
compared to the same quarter from the previous year).In addition, the profit before taxes was 3,679million yen(111.7 % compared to the same quarter from the previous year), and the profit of the quarter attributable to theequity shareholders of the company was 2,374million yen (ratio of same quarter from the previous year of
143.2 %).
Number of units related to domestic distribution of automobiles
Domestic

July of 2018 to June of 2019

July of 2019 to June 2020

Units: vehicles
Compared to theprevious year

New cars
Domestic manufacturer*14,986,398

4,384,762

87.9%(out of this, Nissan
Motor)*1(592,778)(491,866 )(83.0%)

Foreign manufacturer*2306,612

264,80986.4%

5,293,010

4,649,571

87.8%

Total of new vehicle sales
Number of used vehicle
registrations
Registered vehicles*3

3,831.487

3,746,472

97.8%

Light vehicles*4

3,123,533

3,067,767

98.2%

6,955,020

6,814,239

98.0%

227,682229,924101.0 %

Total number of used
vehicles registered
Number of vehicles
permanently deleted*3

ExportNew vehicles of domestic
manufacturers
Used vehicles(registeredvehicles)July of 2018 to June of 2019

July of 2019 to June 2020

Compared to theprevious year*1

4,841,404

4,034,610

83.3%

*5

1,462,583

1,439,123

98.4 %*1 Calculated from Japan Automobile Industry Association statistics*2 Calculated from Japan Automobile Importers’ Association
statistics*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 the Japan Automobile Dealers
Association statistics－ 2 －[Fuel retail price]
National average

Unit: Yen / L
July 2018 ~ June 2019

July 2019 ~ June 2020

Compared to theprevious year

Light oil
*6
129.9
126.5
Regular petrol
*6
150.0
146.1
*6 Calculated from statistics of Agency for Natural Resources and Energy (fuel used by our company fortransport is mainly light oil)97.4 %
97.4 %The segment business results are as follows.
<<Automobile related businesses>>
For vehicle transportation, which is the core business, in addition to start of Mitsubishi Motors’ vehicletransportation business in the mid of August of 2019, sales expansion efforts were taken actively to major used
car dealers. However, with a slump in sales of Nissan Motor Corp, sales revenue for the same company reduced,
the vehicle transportation business revenue reduced as the number of vehicles transported dropped due to thedepression of new vehicle sales in the fourth quarterly consolidated cumulative period. Moreover, for the used
car export business, the number of vehicles exported was suppressed due to the lockdown in Malaysia during
the fourth quarterly consolidated cumulative period. However, the used car export business revenue increased asa result of favorable conditions for Malaysia till the third quarterly consolidated cumulative period. This resulted
in reduction in revenue as an entire automotive industry.
The restructuring of the transportation system including cooperating companies has been accelerated with theimpetus of establishment of regional block companies in the vehicle transportation business, and thoroughimplementation of cost management is being conducted while aiming to achieve a systematic allocation andoptimum distribution network throughout Japan. Profits increased in the automotive related business due to therevision of transportation charges from January 2019, review of the depreciation period of car carriers to match theactual life expectancy, and drop in unit price of fuel expenses compared to the same period of the previous year,
in the midst of business challenges such as promoting initiatives for work style reforms to create forwarding
company and decrease the total work hours, increased labor costs and recruitment costs to deal with driver
shortages, and increased vehicle costs due to the increased number of vehicles and the measures against aging ofcar carriers.
As a result, the overall sales revenue in the automobile related businesses was 64,675 million yen (98.3%
compared to the same period from the previous year), and the segment profit was 5,426 million yen (110.9%
compared to the same quarter from the previous year).
<<Human resource business>>
With tightening of the labor demand accompanying the economic recovery, the difficulty in employment in major
cities and significant rise in labor cost have become a serious matter; therefore, the Group has promoted a regional
shift from the major cities to smaller cities and reinforcement of the sales system, and has reviewed its productportfolio strategically and continuously. Human resource revenue has increased as the existing pick up service anddriver dispatch business have transitioned steadily and participation in the newly entered airport related business
contributes to sales revenue increase , even if being affected by the termination of temporary staffing contracts inthe fourth quarterly consolidated cumulative period, in addition transient job listing advertising costs are no longer
required,; and profit has increased with the restructuring of pricing strategy and cost structure.
As a result, the sales revenue of the overall human resource business was 18,603 million yen (100.4 %compared to the same quarter from the previous year), and the segment profit was 650 million yen (207.6%
compared to the same quarter from the previous year).
<<General cargo business>>
In the transport / warehousing business, cargo volume reduced by the partial clients during the fourth quarterly
consolidated cumulative period. However, it increased due to the increased cargo volume from the rush demand of
the tax rise, from clients that were mainly handling household equipment. However, the revenue in the port cargohandling business reduced due to reduction in coal and automobile-related cargo. Furthermore, the CKD business
was launched and contributed to the sales revenue increase, increasing the revenue in the overall general cargobusiness as well.
Profit increased with the increased revenue in the transport / warehousing business, but revenue decreased in
the port cargo business due to reduced revenue. Furthermore, loss related to the launch of the CKD business has
continued, and there was a significant decrease overall in profit in the general cargo business.
As a result of the above, the sales revenue of the overall general cargo business was 6,222 million yen (104.9 %compared to the same quarter of the previous year), and the segment loss was 188 million yen (segment profit of
150 million yen in the same quarter of the previous year).
Furthermore, the company expenses not including the abovementioned segment-wise loss and profit (expenses
affiliated with our company’s management division), etc. are allocated as an item in the “adjustment amount” asindicated in “3. Consolidated financial statements and major notes (6) Notes on consolidated financial statements(Segment information)” in the summary of consolidated statements for the quarter,” and totaled 2,212 million yen.
－ 3 －(2) Summary of financial position of the current fiscal period
Status of assets, liabilities, and equity(Assets)
Current assets increased 9 million yen (0.1%) compared to the end of the previous consolidated fiscal
year and were 18,187 million yen.
This was mainly because the operating receivables and other receivables reduced by 674 million Yen.
However, cash and cash equivalents increased 1,313 million Yen.
Non-current assets increased by 4,950 million yen (23.2%) compared to the end of the previous
consolidated fiscal year to 26,327 million yen.
This was mainly due to an increase of tangible fixed assets of 5,214 million yen even if other financial
assets reduced by 141 million Yen.
As a result, total assets increased by 4,960 million yen (12.5%) compared to the previous
consolidated fiscal year to 44,514 million yen.
(Liabilities)
Current liabilities increased 2,011 million yen (16.0%) compared to the end of the previous
consolidated fiscal year to 14,572 million yen.
This was mainly due to 1,100 million Yen reduction in operating liabilities and other liabilities. However,loan increased by 745 million Yen and other financial debt increased by 2,126 million yen due to anincrease of lease liabilities.
Non-current liabilities increased by 1,127 million yen (28.8%) compared to the end of the previous
consolidated fiscal year to 5,048 million yen.
This was mainly due to an increase of 1,629 million yen in other financial liabilities due to lease liabilities,etc.
As a result, total liabilities increased by 3,138 million yen (19.0%) compared to the end of theprevious consolidated fiscal year to19,620 million yen.
(Equity)
Equity increased by 1,821 million yen (7.9%) compared to the end of the previous consolidated fiscal
year to 24,894million yen.
This is mainly because profit margin increased by 1,936 million yen due to the totaling of current
period’s profits.
(3) Summary of cash flows of the current fiscal period
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of current consolidated
accounting period increased by 1,313 million yen compared to the end of the previous consolidated
accounting fiscal year to 4,779 million yen.
Each cash flow status category during current consolidated cumulative period and their causes are as
follows.
(Cash flow through operating activities)
Funds obtained from operating activities were 6,538 million yen (there were income of 1,033 million
yen during the same period of the previous year).
The main cause of the increase in funds were 4,188 million yen for depreciation and amortization
expenses which are non-cash expenses and current period’s profits are 2,387 million yen; the main causeof the decrease in funds was 1,255 million yen for payment of corporate income and 602 million yen
which is reduction in operating liabilities.
To compare this with previous consolidated cumulative period, depreciation and amortization haveincreased due to the adoption of IFRS16 “lease”, etc.
(Cashflow through investment activities)
Net cash used in investment activities was 2,067 million yen (expenditures of 2,402 million yen during
the previous consolidated cumulative period).
The main itemization breakdown for expenditures was 1,889 million yen for acquisition of tangible
fixed assets and investment property.
(Cashflow through financial activities)
Funds used due to financing activities were 3,157 million yen (expenditure of 438 million yen in theprevious consolidated cumulative period).
The main itemization breakdown for expenditure was 3,209 million yen lease liabilities payments, 593
million for payment of dividends and 154 million yen for repayment of long-term loan amount.
To compare this with current consolidated cumulative period, income due to lease liability payments(payment of finance / lease liabilities for the previous consolidated cumulative period) have increased dueto the adoption of IFRS16 “lease”, etc.

－ 4 －(4) Future outlook
In the next consolidated cumulative period, the effect of COVID-19 is predicted to remain prevalent in theyear 2020. Namely, it is predicted that number of vehicle transportation will reduce by 10 % due to low
number of new vehicles purchases. It is also estimated that recovery of automobile market of Malaysia
will take time and hence, number of used car export within the year will be reduced to half. Even in thehuman resource business, reduction in sale earnings will be seen due to continued effect of thetermination of temporary staffing contracts.
The domestic automobile industry is said to be in a 100-year transient reform period due to reduction in
population and reduction in number driving license holders due to non-use of cars and advancement ofmobility represented by CASE (Connected, Autonomous, Sharing and Electric) or MaaS (Mobility as aService) in addition to increase in period of average number of usage years with improved durability ofcars.
Moreover, the logistics industry is predicted to show continuous severe financial environment due to theserious insufficiency of drivers due to reduced labor demand, assumed rise in mid to long-term fuel prices,advancement of work reforms aiming at controlling long-term labor and compliance such as on-road load
handling limitations.
Under these conditions, in our company group, optimization of management activity and logistics system
is being promoted by activating the regional characteristics of the base stations all over the country andwith shrinking of domestic automobile market, efforts are being taken for expansion of overseas industry,
participation of automobile industry of various models and reclamation of new industry looking at nextgeneration mobility companies.
Moreover, regional block companies have been established as a series of restructuring of vehicletransportation basics and hence, after estimating transport efficiency possessed within the group,
improvement of transport efficiency and strengthening of cost management will be progressed byrealization of planned vehicle distribution, infrastructure and resource within the group including
cooperative companies will be utilized to the maximum level and effect of group synergy will be
maximized.
The performance forecast of June 2021 period is estimated to be 81 billion Yen of sale earnings, 3.6 billion
yen of operating profits, 3.58 billion yen of profit before tax deduction and 2.3 billion yen of current period
profit owing to owners of new company.
* The above forecast is judged by the company to be rational based on information procurable as of now
and the actual results may differ from the forecast.
2. Basic view on selection of accounting standards
This company group aims at achieving improvement in efficiency and quality of management through integration offinancial report basics considering the progress of overseas business expansion and the policy of Tan Chong International
Limited Group, which is the parent company and at achieving improving international comparison of financial informationin the capital market. International financial standards (IFRS) is applied from consolidated financial statement in securities
report of June 2016 (period no. 70).

－ 5 －

3. Consolidated financial statements and major notes(1)

Consolidated statement of financial position(Unit: million yen)
End of the previous consolidated
End of the current consolidated
accounting year (June 30, 2019) accounting period (June 30, 2020)

AssetsCurrent assets
Cash and cash equivalents

3,465

4,779

Trade and other receivables

13,281

12,607922

511

Other financial assets

4

10

Other current assets

503

279

18,17718,187

Tangible fixed assets

11,931

17,146

Goodwill and intangible assets

2,803

2,626

Investment properties

3,393

3,275

986

984

1,629

1,487

Other non-current assets

291

350

Deferred tax assets

341

456

Total non-current assets

21,37726,327

Total assets

39,55444,514Inventories

Total current assets
Non-current assets

Investment accounting processed withequity method
Other financial assets－ 6 －(Unit: million yen)
End of the previous consolidated
End of the current consolidated
accounting year (June 30, 2019) accounting period (June 30, 2020)
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

6,976

5,875

Loans

1,283

2,028

Other financial liabilities

720

2,847

Income taxes payable, etc.

901

931

2,679

2,889

12,561

14,572

154

55

Other financial liabilities

1,519

3,148

Retirement benefits liabilities

1,725

1,216

Other non-current liabilities

306

276

Deferred tax liabilities

214

351

Total non-current liabilities

3,920

5,048

Total liabilities

16,481

19,620Capital

3,390

3,390

Capital surplus

3,362

3,394

Treasury stock

△687

△681

236

70

16,754

18,69023,05624,86416

29

Total Equity

23,072

24,894

Total liabilities and equity

39,55444,514

Other current liabilities
Total current liabilities
Non-current liabilities
Loans

EquityOther component of funds
Retained earnings
Total equity attributable to the equity
shareholders of the company
Non-controlling interest

－ 7 －

(2)

Consolidated statement of profit or loss

(Unit: million yen)Previous consolidated
cumulative period(from July 1, 2018
to June 30, 2019)

Current consolidated
cumulative period(from July 1, 2019
to June 30, 2020)

Sales revenue

90,22889,501

Cost of sales△78,099△77,100

Gross Profit

12,12912,401△9,302△9,106

Other income

606

475

Other expenses

△127

△95

3,305

3,675

13

17

△57

△69

32

56

3,294

3,679

△1,630△1,292

1,663

2,387

1,658

2,374

5

12

1,663

2,387

Basic earnings per share (yen)99.74

142.30

Diluted earnings per share (yen)99.58

141.98Selling, general and administrative expenses

Operating profit
Financial profit
Financial expenses
Investment gain / loss through equity method
Profit before tax
Corporate income tax expenses
Profits of the year

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

Earnings per share

－ 8 －

(3)

Consolidated statement of profit or loss and other comprehensive income(Unit: million yen)Previous Consolidated
cumulative period(from July 1, 2018
to June 30, 2019)

Profits for the year

Current Consolidated
cumulative period(from July 1, 2019
to June 30, 2020)

1,663

2,387

△219

154

△177

△ 107

△397

47

△2

△58

△2

△58

△399

△11

1,264

2,375

1,258

2,362

5

12

1,264

2,375

Other comprehensive income
Items not transferring over to profit or loss:
Remeasurement of defined benefit system
Net change amount of fair value of equity
instruments specified by measured by fairvalue through other comprehensive income
Total of the items not transferring over toprofit or loss
Items which may be transferred over to profit
or loss
Other comprehensive income equity ofaffiliated company accounted for by theequity method
Total of the items which may be transferredover to profit or loss
Other comprehensive income after tax
deduction
Comprehensive income for the year

Attribution of the comprehensive income for theyear:
Equity shareholders of the company
Non-controlling interest
Comprehensive income for the year

－ 9 －

(4)

Consolidated statement of changes in equity
Previous consolidated accounting period (from July 1, 2018 to June 30, 2019)(Unit: million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2018
Cumulative effect amountdue to change ofaccounting method
Current period balance inaccounting
methodreflected

CapitalCapitalsurplusTreasury
stock

3,390

3,305

△687

3,390

3,305

Conversion
differenceof businessactivities
overseas

Fluctuationof fair valueof financial
assetswhich canbe sold

Financialassetsmeasuredby fairvaluethroughothercomprehensive
profits

△47

464

-

△464

464

-

464

△687

△47

Remeasurementofdefinedbenefitsystem-Total equity
Nonattributing to controlling
Retained the equity
interest
Total otherearnings shareholders
componentsof theof funds
company-

Profit of the year
Other comprehensive
income△2Comprehensive
income of the year

-

-

-

-

△2

15,682

22,10822,119

-

△18

△18

416

15,66422,08911

22,101

-

1,658

1,658

5

1,663

△18

△219

△399

△177

△219

△399

1,658

1,258

-

△348

△348

△348

-

56

56

-

△0

△0

-

56

Acquisition of treasury
stock

416

△177

Dividends of thesurplus
Share-based paymenttransactions, etc.

11

Total
equity△0Transfer from othercapital component to
Retained earnings

△399

219

219

△219

-

△399
5

1,264

Total transactions,etc. with theowners

-

56

△0

-

-

-

219

219

△568

△292

-

△292

Balance on June 30, 2019

3,390

3,362

△687

△50

-

286

-

236

16,75423,05616

23,072Current consolidated accounting period (from July 1, 2019 to June 30, 2020)(Unit: million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2019

CapitalCapitalsurplusTreasury
stock

3,390

3,362

△687

Conversion
differenceof businessactivities
overseas

Fluctuationof fair
value offinancialassetswhich canbe sold

Remeasurementofdefinedbenefitsystem

△50

286

-

Profit of the year
Other comprehensive income
Comprehensive income of
the year

-

-

-

31

Balance on June 30, 2020

16,75423,05616

23,072

-

2,374

2,374

12

2,387

12

2,375

△107

154

△11

△58

△107

154

△11

2,374

2,362

-

△593

△593

△593

38

38

0

△11

6

Transfer from other capitalcomponent to retained
earnings
Total of transactions, etc.,with the owners

236

△58

Dividends of the surplus
Share-based paymenttransactions

Total equity
attributing to Non-controlling Total equity
interests
Retained the equity
Total otherearnings shareholders
componentsof theof funds
company

△154

△154

155

0

△11

-

31

6

-

-

△154

△154

△437

△554

-

△554

3,390

3,394

△681

△108

179

-

70

18,69024,86429

24,894－ 10 －

(5) Consolidated statement of cash flow
(Unit: million yen)
Current Consolidated
cumulative period(from July 1, 2019
to June 30, 2020)

Previous consolidated
cumulative period(from July 1, 2018
to June 30, 2019)
Cash flow from operating activities
Profits of the year

1,663

2,387

Depreciation and amortization costs

1,708

4,188

Interest income and dividend

△13

△12

45

51

Investment gain / loss through equity method

△32

△56

Corporate income tax expenses

1,630

1,292

△1,992

345

△409

411

240

△602

△440

△275

Other

597

104

Subtotal

2,998

7,833

13

12

△45

△51

Corporate income tax paid

△1,932△1,255

Net cash provided by (used in) operating
activities

1,033

6,538

Payment for acquisition of tangible fixed assets
and investment properties△2,195△1,889Proceed from sales of tangible fixed assets andinvestment properties

7

13

Payment for intangible assets

△240

△105

Payment for loans receivable

△25

△36

Proceed from loans receivable

20

19

Other

30

△68

△2,402△2,067

Interest expense

Increase / decrease of trade receivables(△ is an increase)
Increase / decrease of inventories(△ is an increase)
Increase / decrease of trade payables(△ is a decrease)
Increase / decrease in retirement benefits
liabilities (△ is a decrease)

Interest and dividend received
Interest paid

Cash flow from investment activities

Net cash provided by (used in) investment
activities－ 11 －

Previous consolidated
cumulative period(from July 1, 2018
to June 30, 2019)

Current Consolidated
cumulative period(from July 1, 2019
to June 30, 2020)

Cash flow from financing activities
Net increase or decrease of short-term loans(△ is a decrease)

700

800

Repayment of long-term loans

△226

△154

Repayment of finance lease debts△563△3,209Dividend paid

△348

△593

△0

-

△438

△3,157△1,807

1,313

5,273

3,465

3,465

4,779

Payment for acquisitioning of treasury stock
Cash flow through financing activities
Increase / decrease in of cash and cash
equivalents (△ is a decrease)
Cash and cash equivalents at the beginning of
the year
Balance of cash and cash equivalents at the endof the year

－ 12 －

(6) Notes on consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Changes in accounting policies)
The important company policies that our group applies to this quarterly consolidated financial
statement summary will be the same company policies applicable to the consolidated financial statementsof the previous consolidated accounting year excluding the below.
(1) Application of IFRS No. 16 (lease)
Our group has applied the following standards starting from the first quarter of the consolidated accounting
period.
Standard

Name of the standard

Summary

IFRS No. 16

Lease

Definition of lease and revision of accounting
process

In the application of IFRS No. 16 “Lease (announced in January of 2016, hereinafter referred to as
IFRS No. 16), a method which is approved as a transitional measure that recognizes the cumulative amountof financial impact due to the application of this standard to be recognized on the day the application isstarted(retroactive revision approach), is being adopted. Therefore, revised comparison information is notshown again, and the cumulative effect of the application of IFRS No. 16 is recognized on the initial
application date, which is July 1, 2019.
In the previous consolidated accounting year, our group has classified all substantial risks and lease contracts
with economic benefit as finance lease. Lease assets are initially recognized at the fair value or the current valueof the total amount of minimum payment lease fee. Lease contracts other than finance leases are classified as
operating leases and are not appropriated in the consolidated statement of affairs of our group. The payment
lease fee of operating leases is recognized as an expense throughout the lease period based on the straight-line
method.
During current consolidated accounting year, our group did not categorize borrower leases as financeleases or operating leases, in accordance with IFRS No. 16,Our group introduced a single accounting model,
and has recognized lease debts which show the obligation to pay the right-of-use asset and lease fee,
which show the right to use the underlying assets as a general rule for all leases; excluding cases of shortterm leases with a lease period shorter than 12 months or small amount assets leases.
Accompanying the application of IFRS No. 16, for borrower lease transactions, our group has measured
the right to use asset at acquisition cost and the lease debt at the current value of the total amount of
unpaid lease fees at the lease commencement date. The acquisition cost of the right to use asset is initiallymeasured by adjusting the prepaid lease payment, etc. to the initial measured amount of the lease debt. In
the summary of consolidated financial status statement for the quarter, the right-of-use asset is shown as
included in the “tangible fixed assets,” and the lease debt is included in the “other financial debts. “Thedepreciation of the right-of-use assets and interest costs related to the lease debt are appropriated after
recognizing the right-of-use assets and the lease debts.
Our group estimates the lease period of the right-of-use asset by adding a reasonably certain time period
in which executing an option to extend the lease or executing an option to cancel the lease will not be
exercised during the irrevocability period of the lease. In addition, the discount rate applied to the leasedebts related to the applicable right-of-use assets utilize the borrowing interest rate of the borrower. The rightof-use assets are depreciated using the straight-line method over the useful life period of the underlying asset
if the ownership of the underlying asset is to be transferred to the borrower, over the shorter of either theuseful life period or the lease period for other cases.
In addition, our group utilizes the following practical expedients in applying the IFRS No. 16.
• Regarding leases in which the lease period is to be concluded within 12 months of the application startdate, the same accounting process method of short-term leases• Exclude the initial direct cost from the measurement of right-of uses of the date of initial application• Carry over the past decision of whether the transaction is a lease or not for the contracts signed before
the previous consolidated accounting year
• Utilize ex post facto decisions in the case of calculating the lease period for contracts which include
extension or cancellation options(2) Effect on the summary of the consolidated financial statements of the quarter
For the company group, 8,871 million yen for right-of-use assets and 8,720 million yen for lease debts areappropriated in the summary of consolidated financial status statements for this quarter on July 1, 2019. Thisis mainly an influence of the lease fee classified as an operating lease in IAS No. 17 being appropriated as an
asset and debt upon application of IFRS No. 16. Furthermore, there is no effect on the accumulated earnings
at the beginning of the term because right-of-use assets that is the same amount as the lease debts (however,advance lease fee is revised) is recognized when the lease debt is recognized.
－ 13 －

The average of the added borrowing interest applied to the lease debts at the time of the application
start date was 0.2%.
In addition, the cash flow due to sales activities increased, and the cash flow due to financial activities
decreased in conjunction with the change, etc. of display in the operating lease cost.
The difference between the total of the minimum lease fee of the irrevocable operating leases at thelast date of the fiscal year immediately before the application start date, and the lease debt recognized in
the summary of the consolidated financial status statement for the quarter as of the application start date,is as follows.
(Million yen)AmountTotal amount of future minimum lease fees for irrevocable operating lease (June 30, 2019)
1,965
Total amount of future minimum lease fees for irrevocable operating lease after discount (July 1,
1,946
2019)
Lease debts classified in the finance leases (June 30, 2019)
2,149
Effects, etc., from the review of lease period due to the application of IFRS No. 16
4,624
Lease debts recognized in the summary of the consolidated statement of financial position as of
8,720
the application start date (July1, 2019)(Change of accounting estimates)(Change in life expectancy)
Regarding the group’s sales vehicles in the automobile related business by our company, (some excluded); it
became clear that long-term usage could be expected through regular maintenance, etc. Due to this, the life
expectancy has been revised from the conventional 7 years to 10 years starting the first quarter of theconsolidated accounting period going forward.
Due to this, 326 million yen has been added to the sales profit and pre-tax profits for the current
consolidated cumulative period compared to the case of using the conventional useful life period. In addition,
the effect on the segment information is indicated in the applicable portions.
(Additional Information)(About accounting estimates associated with the spread of COVID-19 )Now the COVID-19 infection is continuing to spread, and it has a certain impact on the business activities ofour group. Our company group makes an estimate about future cash flows in fixed asset impairment
accounting and goodwill impairment testing, and collectability of deferred tax assets in tax effect accounting. In
reflecting the impact of the COVID-19 infection in the accounting estimate, it is predicted that the effect of
COVID-19 infection will continue for a certain period of June 2021.
Although we make reasonable estimates and judgments based on the information procurable as of now,there are uncertainties in the estimation of the spread and convergence of the COVID-19, and the actual results
may differ from the forecast.

－ 14 －

(Segment information)(1) Summary of report segment
In the report segment of our group, financial information isolated from the structural unit of our group canbe procured and the highest decision-making body conducts regular study for deciding division of management
resources and evaluating performance.
This group collects the business segments based on the state of management organization andcharacteristics of the service and creates report segment as “automobile-related business”, “human resourcesbusiness” and “general cargo business”. Main services belonging to each report segment
Segment
Main service
Automobile-related businessTransport of automobiles, repair, used cars auction, usedcars export
Human resource businessTemporary staffing of drivers, personal car driving
management
General cargo business
General consumer goods transport and maintenance,loading and unloading of coal, minerals, warehouse lease,
CKD business etc.
(2) Sale earnings, profit and loss, assets and other amounts for each report segment
Sale earnings, profit and loss, assets and other amounts for each report segment of our group are as follows.
The accounting policy for each report segment is same as account of our company stated in note 3. Importantaccounting policies.
The sale earnings between the segments are based on market pricing.
Previous consolidated accounting year (from July 1, 2018 to June 30, 2019)(Unit: million yen)
Total amount
Adjustment on theamountconsolidated(note) 1
financialstatements

Automobile
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

65,766

18,527

5,935

90,228-90,228

39

1,221

433

1,694

△1,694-65,80519,748

6,368

91,923△1,69490,228Segment profit (operating profit)

4,894

313

150

5,358

△2,053

3,305

Segment assets

23,783

6,423

7,414

37,621

1,933

39,554

Sales revenue from externalcustomers
Sales revenue between segments
Total

Total

Other items
2,618
72
251
2,942
0
2,942
Increased amount in non-current
assets (note) 2
1,325
89
202
1,616
91
1,708
Depreciation and repayment amount(Note) 1. The adjusted amount is as follows.
1 The △ 2,053 million yen adjusted amount of segment profit includes total company cost of △2,053 million yen and 0 million yen of transaction elimination between segments.
The total company cost is an expense related to the management divisions of our company not belonging to
the reporting segment.
2 The 1,933 million yen adjusted amount of segment assets includes total company assets of 9,362 million yen not
allotted into any of report segment and △7,429 million of translation elimination between
segments.
3 The adjusted amount of other items is related to the total company assets not allotted to any report segment.
2.

Non-current assets do not include financial assets, deferred tax assets etc.

－ 15 －

Current consolidated accounting year (from July 1, 2019 to June 30, 2020)(Unit: million yen)
Total amount
Adjustment on theamountconsolidated(note) 1
financialstatements

Automobile
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

64,675

18,603

6,222

89,501-89,501

44

1,056

444

1,545

△1,545-

Total

64,71919,6596,667

91,046△1,54589,501

Segment profit (operating profit) (△is loss)

5,426

650

△188

5,888

△2,212

3,675

Segment assets

26,587

6,995

8,326

41,9102,604

44,514

Sales revenue from externalcustomers
Sales revenue between segments

Total

Other items
Increased amount in non-current
2,234
40
107
2,382
17
2,399
assets (note) 2
Depreciation and repayment
1,299
88
199
1,587
58
1,646
amount(Note) 1. The adjusted amounts are as follows.
1The △ 2,212 million yen adjusted amount of segment profit includes total company costof △ 2,212 million yen and 0 million yen of transaction elimination between segments. The
total company cost is an expense related to the management divisions of our company not belonging to
the reporting segment.
2 2,604 million yen adjusted amount of segment assets includes total company assets of 10,421 million
yen not allotted into any of report segment and △ 7,816 million of translation elimination
between segments.
3 The adjusted amount of other items is related to the total company assets not allotted to any report
segment.
2. Non-current assets do not include financial assets, deferred tax assets etc.
3. As stated in “3. Consolidated financial statements and major notes (6) Notes on consolidated financial
statements (Changes in accounting estimate), regarding the group’s sales vehicles in the automobile
related business by our company, (some excluded); the life expectancy has been revised starting fromthe first quarter of the consolidated accounting period. Due to this, the sales profit increased by 326
million yen in the automobile-related business for the current consolidated cumulative period
compared to the case of using the conventional useful life period.
(3) Regional information
1 The breakdown of sales revenue from external customers by region are as follows.
Previous consolidated accounting year (July 1, 2018 to June 30, 2019)(Unit: million yen)Total
80,0269,751
450
90,228(Note) “Malaysia” included in “Asia” region was mentioned as a region from the current consolidated cumulative period as
its importance increased in the previous consolidated cumulative period.
Japan

Malaysia (note)

Other

Current consolidated accounting year (July 1, 2019 to June 30, 2020)
Japan
78,763

Malaysia (note)
10,278

Other
459(Unit: Million yen)Total
89,501

2 Non-current assets
There are no non-current assets present outside Japan and hence, this item is not applicable.

－ 16 －

(4) Information on major customers
Previous consolidated accounting year (July 1, 2018 to June 30, 2019)
Name or title of customer
Nissan Motors Group (Note)

Sales revenue
19,495(Unit: Million yen)
Related segment
Automobile-related business(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Autech Japan Co.
Ltd. and Nissan Motors Sales Co. all over the country.
Current consolidated accounting year (July 1, 2019 to June 30, 2020)
Name or title of customer
Nissan Motors Group (Note)

Sale revenue
17,553(Unit: Million yen)
Related segment
Automobile-related business(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Autech Japan Co.
Ltd. and Nissan Motors Sales Co. all over the country.
(Information per share)
The calculation of basic earnings per share for current period and basic earnings per share after dilution in theprevious consolidated accounting year and current consolidated accounting year are as follows.
(1) Basic earnings per share
Profit for the year attributable toequity shareholders of the company(million Yen)
Weighted average number of shares(thousand shares)
Basic earnings per share (yen)Previous consolidated accounting year
(July 1, 2018 to June 30, 2019)
1,658

Current consolidated accounting year
(July 1, 2019 to June 30, 2020)
2,374

16,626

16,68599.74

142.30(2) Basic earnings per share after dilution
Previous consolidated accounting year
(July 1, 2018 to June 30, 2019)
Profit for the year used for calculation
1,658
of earnings per share after dilution(million Yen)
Impact of dilutive potential common
27
stock
Stock benefit trust BBT (thousand
shares)
Weighted average number of shares
16,654after dilution (thousand shares)
Basic earnings per share after dilution
99.58
(yen)
(Significant subsequent events)
No applicable item.

－ 17 －

Current consolidated accounting year
(July 1, 2019 to June 30, 2020)
2,374
37

16,744141.98