Summary of Consolidated Financial Results for the Third Quarter Ending of the Fiscal Year June 30, 2024 [Based on IFRS]May 9, 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:
May 10, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
No
Holding of quarterly financial results meeting:No

Stock Exchange Listing: Tokyo
TEL 044-520-0106-(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the third quarter ending of the fiscal year June 30, 2024 (From July 1, 2023 to March 31, 2024)(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%

3Q FY2023/2024

105,570

4.5

4,501

20.0

4,512

20.3

3,005

20.0

2,959

3Q FY2022/2023

101,052

32.1

3,752

29.1

3,751

27.4

2,504

31.6

2,500

Basic quarterly earnings per share

Total comprehensive
income of the quarter
Millionsof yen

%

18.4

3,399

31.0

31.2

2,594

29.3

Diluted quarterly earnings per share

Yen

Yen

3Q FY2023/2024

175.19175.183Q FY2022/2023

148.37148.35(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%

3Q FY2023/2024

65,44236,42235,80054.7

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

Fiscal year-end

Yen

FY2022/2023

---

15.00

---

FY2023/2024

---

15.00

---

FY2023/2024(forecast)

Total
Yen

Yen

36.00

51.00

39.80

54.80

(Note) Amendment from the most recently announced dividend forecast: Yes
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 to
Basic earnings per
equity shareholders
shareof the company

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen137,000

3.1

5,600

10.3

5,600

10.2

3,700

7.6

219.01(Note) Revisions from the most recently released business forecast: Yes(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  Co. (Company name),
Exclusions  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

3Q FY2023/2024

17,560,242 shares

FY2022/2023

3Q FY2023/2024

920,782 shares

FY2022/2023

3Q FY2023/2024

16,894,109 shares

3Q FY2022/2023

17,560,242 shares
956,982 shares
16,850,457 shares

Earnings summary is not within the scope of the quarterly review by a certified public accountant or auditor
Explanation 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...........................................................................................................................4(3) Explanation on future forecast information, such as consolidated earnings forecast……………………………………4
2. Summary of the quarterly consolidated financial statements and major notes……………………………………………4(1) Summary of the quarterly consolidated financial position………………………………………………….……………5(2) Summary of the quarterly consolidated profit and loss statement……………………………..…………………………7(3) Summary of the quarterly consolidated comprehensive income statement………………….……………………………8(4) Summary of the quarterly consolidated statement of changes in equity…………………………………………………9(5) Summary of the quarterly consolidated statement of cash flows…………………………………………………………10(6) Notes regarding summary of the quarterly consolidated financial statements…………………………………….….…12(Notes on going concern assumption) …………………………………………………………………………………12(Changes in Presentation)...............................................................................................................................................12(Segment information) …………………………………………………………………………………………...……12(Business Combination) ………………………………………………………………………………………….……12―1―

1. Qualitative information on the quarterly financial results(1) Explanation regarding the operating results
Japan's economy during the third quarter of the current consolidated cumulative period was gradually picking up or evenrecovering, despite some downward pressure from the Noto Peninsula earthquake.
In the domestic automotive market, the total number of new vehicles sales decreased to 98.9% (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 previous year). The Group has been affected by the suspension of shipments
due to a series of misconduct at some finished vehicle manufacturers that occurred since the end of 2023. The number of used
vehicle registrations and sale increased to 102.9% compared to the same period of the previous year in line with the recovery in
new car sales up to the previous quarter.
Revenues increased mainly in the automobile-related businesses. Operating profits increased mainly in the overseas businesses
and the Overseas-related business.
As a result, the business results of our group are as follows: sales of 105,570 million yen (104.5% compared to the same quarter
from the previous year) and operating profit of 4,501 million yen (120.0% compared to the same quarter from the previous year).
Also, the profit before taxes was 4,512 million yen (120.3% compared to the same quarter from the previous year), and the profitof the quarter attributable to the equity shareholders of the company was 2,959 million yen (118.4% compared to the same quarter
from the previous year).
Number of units related to domestic distribution of automobiles
Domestic

July of 2022 to March of 2023

July of 2023 to March of 2024

Units: vehicles
Compared to theprevious year

Number of new vehicles soldDomestic manufacturer*1

3,307,458

3,274,024

99.0％(out of this, Nissan Motor)*1(365,051)(377,816)(103.5％)

Foreign manufacturer*2

189,243

185,602

98.1％

3,496,701

3,459,626

98.9％

*3

2,611,620

2,732,945

104.6％*4

2,138,112

2,154,974

100.8％

4,749,732

4,887,919

102.9％

July of 2022 to March of 2023

July of 2023 to March of 2024

Compared to theprevious year*1

3,034,805

3,393,095

111.8％*5

996,004

1,190,723

119.6％

Total of new vehicle sales
Number of registered used
vehicles and sales
Registered vehicles
Light vehicles
Total number of registered
used vehicles and sales
ExportNew vehicles of domestic
manufacturers
Used vehicles (registeredvehicles)*1 Calculated from Japan Automobile Industry Association Statistics*2 Calculated from Japan Automobile Importers’ Association statistics

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―

*3

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 and the suspensionof shipments due to misconduct in some new vehicle manufacturers, resulting in an overall increase in revenues in the domestic
automobile-related business.
Segment profit was affected by higher recruitment and labor costs due to increases in the consumer price index and minimum
wages amid an increase in the ratio of active job openings to active job applicants for crew members following the end of the
COVID-19 Pandemic, as well as higher vehicle costs due to investments in transportation equipment in anticipation of EVs. On theother hand, the rate revision in January 2024 in the vehicle transportation business, an increase in the number of vehicles requiring
pre-delivery maintenance in the maintenance business, and an increase in the number of transportation requests from rental
construction equipment companies in the construction equipment transportation business, due to the Noto Peninsula earthquake,plus the consolidation of SO-ING Co., Ltd. in November 2023, resulted in a net increase in revenue for the Group.
As a result, the overall sales in the domestic automotive related businesses was 46,629 million yen (108.1% compared to thesame quarter from the previous year), and the segment profit was 4,428 million yen (123.1% compared to the same quarter fromthe previous year).
In the vehicle transportation business, the Group continued to implement the "Digitalization", "Greening", and "New normal"
policies outlined in our mid-term management plan through June 30, 2024.
In the area of "Digitalization", we have set up the Transportation Digitalization Promotion Office and are promoting theconstruction 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 entrusted by 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 sequentiallyintroduce the equipment. In addition, with the rapid adoption of EVs, the Group will consider building an infrastructure that includes
the implementation of ancillary services in EV vehicle transportation.
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 a system of division of laborin cargo handling while maintaining the operation hours of crew members toward the "Year 2024 Problems", and at the same time,
we will promote new hiring of crew members and efficient operation of transportation equipment. However, in the midst of thechronic shortage of crew members, combined with rising consumer price indexes, minimum wages, and unit labor costs, it isnecessary to maintain and improve compensation while reducing the total working hours of crew members, and to introduce newcrew members and transportation equipment 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 the number of vehicles
in the MaaS (Mobility as a Service) business. In the human resources business, revenue increased due to an increase in the numberof 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 of flights to and from Japan and the promotion of foreign recruitment. Segment profit
increased due to increased sales in each business segments.
As a result, the sales revenue of the overall human resource business was 16,133 million yen (104.7% compared to the samequarter from the previous year), and the segment profit was 616 million yen (102.6% compared to the same quarter from theprevious year).
(3) General cargo businessIn the port cargo handling business, revenue from fuel cargo handling for biomass power plants increased due to acquisition ofcargo handling for new power plants, but revenues in the transport / warehousing business decreased due to letting go of unprofitablecustomers, and revenue in the overall general cargo business decreased as well. Segment profit decreased in the general cargobusiness as a whole as a result of the loss from the fire that occurred at our Kawasaki Multi-functional Logistics Center on January
11, 2024.
As a result, the sales revenue of the overall general cargo business was 4,822 million yen (99.5% compared to the same quarter
from the previous year), and the segment profit was 480 million yen (54.2% compared to the same quarter from the previous year).
(4) Overseas Related Businesses
In the used vehicle export business, revenue decreased slightly due to restrictions on the number of used cars exported to Malaysia
as the number of dedicated car carriers was limited as a result of brisk exports of new vehicles from Japan against the depreciationof the yen. In the CKD business, revenue increased due to an increase in the number of packaging units, and in the vehicletransportation business in China, revenue increased due to acquisition of new customers.
Segment profit increased in the used vehicle export business due to cost reductions and the passing on of costs. In addition, theCKD business posted an increase in profit due to an increase in revenue, while the vehicle transportation business in China posted
an increase in profit thanks to the successful acquisition of new customers.
As a result of the above, the sales revenue of the overall overseas business was 37,984 million yen (100.9% compared to thesame quarter from the previous year), and segment profit was 676 million yen (199.0% compared to the same quarter from theprevious year).
Furthermore, the company expenses not included in the abovementioned report segment (expenses affiliated with our company’s
management division), etc. are allocated as an item in the "adjustment amount" as indicated in "2. (Segment information) in thesummary of the quarterly consolidated financial statements and major notes", and totalled 1,701million yen.

―3―(2) Explanation regarding financial position(1) Status of assets, liabilities, and equity(Assets)
Current assets increased by 7,526 million yen (28.9%) compared to the end of the previous consolidated fiscal year to 33,558
million yen.
This was mainly due to an increase of 6,753 million yen in trade and other receivables.
Non-current assets increased by 1,357 million yen (4.4%) compared to the end of the previous consolidated fiscal year to
31,884 million yen.
This was mainly due to an increase of 1,898 million yen in intangible assets, despite a decrease of 1,264 million yen in tangible
fixed assets due to amortization of right-of-use assets.
As a result, total assets increased by 8,884 million yen (15.7%) compared to the previous consolidated fiscal year to 65,442
million yen.
(Liabilities)
Current liabilities increased 5,886 million yen (32.3%) compared to the end of the previous consolidated fiscal year to 24,086
million yen.
This was mainly because retained earnings increased by 6,800 million yen.
Non-current liabilities increased 411 million yen (9.1%) compared to the end of the previous consolidated fiscal year to 4,933
million yen.
This was mainly due to an increase of 390 million yen in deferred tax liabilities.
As a result, total liabilities increased by 6,297 million yen (27.7%) compared to the end of the previous consolidated fiscal
year to 29,020 million yen.
(Equity)
Total equity increased by 2,586 million yen (7.6%) compared to the end of the previous consolidated fiscal year to 36,422
million yen.
This was mainly because retained earnings increased by 2,273 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 third
quarter increased by 1,965 million yen compared to the end of the previous consolidated fiscal year to 7,440 million yen.
Each cash flow status category during the consolidated cumulative period of the third quarter and their causes are as follows.
(Cash flow from operating activities)
Funds obtained as a result of operating activities were 2,468 million yen (there was an income of 3,262 million yen during thesame period of the previous year).
The main cause of the increase in funds were 3,829 million yen for depreciation and amortization expenses which are nonfund expenses and 3,005 million yen in quarterly income; the main cause of the decrease in funds was 5,670 million yen increasein trade receivables.
(Cash flow from investment activities)
Net cash used in investment activities was 3,887 million yen (expenditures of 1,279 million yen during the same period of theprevious year).
The main itemization breakdown for expenditures were 1,713 million yen for acquisition of tangible fixed assets andinvestment property and 1,655 million yen for the acquisition of shares of subsidiaries resulting in changes in the scope of
consolidation.
(Cash flow from financing activities)
Net cash obtained from financing activities was 3,346 million yen (expenditures of 2,366 million yen during the same periodof the previous year).
The main itemization breakdown for expenditures were 2,243 million yen lease liabilities payments and 847 million yen for
dividends, while the main itemization breakdown for income was 6,600 million yen net increase for short-term borrowings.
(3) Explanation on future forecast information, such as consolidated earnings
We have revised our consolidated earnings forecast for the fiscal year ending June 2024 based on the performance trends andother factors during the third quarter of the current fiscal year.
For information on the revision of consolidated earnings forecast, please refer to the "Notice Concerning Revision of Earnings
Forecast and Revision of Year-end Dividend Forecast" published on May 9, 2024.

―4―

2. Summary of the consolidated financial statements and major notes(1) Summary of quarterly consolidated statement of financial position(Units: Million yen)
Consolidated cumulative period
End of the previous consolidatedof this third quarter (2024 Marchaccounting year (June 30, 2023)
31)
AssetsCurrent assets
Cash and cash equivalents

5,475

7,440

Trade and other receivables

14,843

21,597

Inventories

4,730

3,315

Other financial assets

469

699

Other current assets

514

505

26,03233,558

Tangible fixed assets

20,743

19,478Goodwill and intangible assets

3,378

5,276

Investment properties

3,020

3,000

533

511

Other financial assets

1,939

2,108

Other non-current assets

433

1,081

Deferred tax assets

478

427

Total non-current assets

30,52631,884

Total assets

56,55865,442

Total current assets
Non-current assets

Investment accounting processed with equity method―5―

(Units: Million yen)
Consolidated cumulative period
End of the previous consolidatedof this third quarter(2024 Marchaccounting year (June 30, 2023)
31)
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

9,077

9,604

Bonds and borrowings

1,600

8,432

Lease liabilities

3,132

1,296

Income taxes payable, etc.

1,283

860

Other financial liabilities－

2

Other current liabilities

3,106

3,890

18,20024,086

－

98

2,563

2,050

Other financial liabilities

89

100

Retirement benefits liabilities

655

1,034

Other non-current liabilities

313

359

Deferred tax liabilities

899

1,289

Total non-current liabilities

4,522

4,933

Total liabilities

22,722

29,020Capital

3,390

3,390

Capital surplus

3,461

3,472

Treasury stock

△638

△614

644

852

26,42628,70033,28535,800550

621

Total Equity

33,83636,422

Total liabilities and equity

56,55865,442

Total current liabilities
Non-current liabilities
Loans
Lease liabilities

EquityOther components of funds
Retained earnings
Total equity attributing to the equity shareholders of
the company
Non-controlling interest―6―(2) Summary of quarterly consolidated profit and loss statement(Units: Million yen)
Consolidated cumulative period Consolidated cumulative period
for the previous third quarterof this third quarter(From July 1, 2022
(From July 1, 2023
to March 31, 2023)
to March 31, 2024)
Sales

101,052

105,570

Cost of sales△89,761△92,479

Gross profit

11,291

13,090△7,700△8,347

Other income

204

291

Other expenses

△42

△532

3,752

4,501

42

54

Financial expenses

△37

△33

Investment gain / loss through equity method

△5

△10

3,751

4,512

△1,247△1,506

2,504

3,005

2,500

2,959

4

46

2,504

3,005

Basic quarterly earnings per share (yen)148.37175.19Diluted quarterly earnings per share (yen)148.35175.18Selling, 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―7―(3) Summary of the quarterly consolidated comprehensive income statement(Units: Million yen)
Consolidated cumulative period Consolidated cumulative period
for the previous third quarterof this third quarter(From July 1, 2022
(From July 1, 2023
to March 31, 2023)
to March 31, 2024)
Profits of the quarter

2,504

3,005

4

198

Financial assets measured by fair value through othercomprehensive profits

131

93

Total of the items not transferring over to profit or loss

136

291

△72

70

27

30

△45

101

90

393

2,594

3,399

Equity shareholders of the company

2,616

3,328

Non-controlling interest

△21

70

Comprehensive income of the quarter

2,594

3,399

Other comprehensive income
Items not transferring over to profit or loss:
Remeasurement of defined benefit system

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 over toprofit or loss

Other comprehensive income after tax deduction
Comprehensive income of the quarter

Attribution of the comprehensive income for the quarter:―8―

(4) Summary of the quarterly consolidated statement of changes in equity
Consolidated accounting period of the third quarter (from July 1, 2022 to March 31, 2023)(Units: Million yen)
Equity attributable to equity shareholders of the company

Balance on July 1, 2022

CapitalCapitalsurplus

3,390

3,458

△667

155

288

－

Profits of the quarter
Other
incomecomprehensive

Comprehensive incomeof the quarter

－

－

－

△6

Balance on March 31, 2023

444

23,44030,067546

30,614

－

2,500

2,500

4

2,504

115

△25

90

△21

2,594

131

4

115

△20

131

4

115

2,500

2,616

－

△625

△625

△625

21

21
－

28

－

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

Total
Equity△20

Dividends of the surplus
Share-based
paymenttransactions, etc.

Non-

Treasury
Other components of funds
Retained
Total controllinginterest
stock Conversio Financial Remeasur
earnings
equityTotal
attributingnassetsement ofotherto thedifference measured defined componen
equityofbyfair benefit
ts ofshareholdbusiness value
systemfunds
ers of theactivities throughcompany
overseas othercomprehensive
profits

△0

△4

△5

5

－

－

△6

28

－

△0

△4

△5

△619

△603

－

△603

3,390

3,451

△638

135

419

－

554

25,321

32,080525

32,605

Consolidated cumulative period of this third quarter (from July 1, 2023 to March 31, 2024)(Units: Million yen)
Equity attributable to equity shareholders of the company

Balance on July 1, 2023

CapitalCapitalsurplus

3,390

3,461

△638

172

472

－

Profits of the quarter
Other
incomecomprehensive

Comprehensive incomeof the quarter

－

－

－

10

Total transactions, etc.
with the owners
Balance on March 31, 2024

644

26,42633,285550

33,836

－

2,959

2,959

46

3,005

368

24

393

70

3,399

93

198

368

77

93

198

368

2,959

3,328

－

△847

△847

△847

34

34
－

24

Transfer from other capitalcomponent to Retained
earnings

Total
Equity77

Dividends of the surplus
Share-based
paymenttransactions, etc.

Non-controllin
Treasury
Other components of funds
RetainedTotal
g interest
stock Conversio Financial Remeasur
earnings
equityTotal
attributingnassetsement ofotherto thedifference measured defined componen
equityofby fair
benefitts ofshareholdbusinessvalue
systemfunds
ers of theactivities throughcompany
overseasothercomprehensive
profits

－
△1

39

△198

△160

160

－

－

10

24

△1

39

△198

△160

△686

△812

－

△812

3,390

3,472

△614

247

604

－

852

28,70035,800621

36,422―9―

(5) Summary of the quarterly consolidated statement of cash flows(Units: Million yen)
Consolidated cumulative period Consolidated cumulative period
for the previous third quarterof this third quarter(From July 1, 2022
(From July 1, 2023
to March 31, 2023)
to March 31, 2024)
Cash flow from operating activities
Profits of the quarter
Depreciation and amortization costs
Interest income and dividendInterest expense
Investment gain / loss through equity method
Corporate income tax expenses
Increase / decrease of trade receivables (△ is anincrease)
Increase / decrease of inventories (△ is an increase)
Increase / decrease of trade payables (△ is a decrease)
Increase / decrease in net defined benefit asset andliability
Other
SubtotalInterest and dividend received
Interest paid
Corporate income tax paid
Cash flow from operating activities

2,504

3,005

3,663

3,829

△42

△45

31

30

5

10

1,247

1,506

△3,435△5,670

601

1,417

439

755

△17

△7

△280

△373

4,717

4,460

42

45

△31

△30

△1,465△2,006

3,262

2,468

△1,333△1,713

11

47

△130

△421

－

△1,655173△144△1,279△3,887

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
Expenditures from acquisition of investments in
subsidiaries resulting in change in scope of
consolidation
Other
Cashflow from investment activities―10―(Units: Million yen)
Consolidated cumulative period Consolidated cumulative period offor the previous third quarter
this third quarter(From July 1, 2022
(From July 1, 2023
to March 31, 2023)
to March 31, 2024)
Cash flow from financing activities
Net increase or decrease of short-term loans (△ is adecrease)
Repayment of long-term loans
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 adecrease)
Cash and cash equivalents at the beginning of the year
Balance of cash and cash equivalents at the end of the quarter

―11―

556

6,600

△22

△63

－

△100

△2,274△2,243△625△847△2,366

3,346

△55

38

△438

1,965

5,180

5,475

4,742

7,440

(6) Notes regarding summary of the quarterly consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(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 third 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 the presentation. To reflect this change in presentation, thecondensed quarterly consolidated financial statements for the third quarter of the previous fiscal year have been reclassified.
As a result, 2 million yen presented in “Other” under “Cash flow from operating activities” in the condensed quarterly
consolidated statements of cash flows for the third quarter of the previous fiscal year has been reclassified as “Increase / decreasein net defined benefit asset and liability” under “Cash flows from operating activities”.
(Segment information)
The segment information of our group is as follows.
Consolidated accounting period of the third quarter (from July 1, 2022 to March 31, 2023)(Units: Million yen)Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

Overseas
RelatedBusiness

Total

Adjustment
Total
amountamount on(note)
the quarterly
consolidated
financialstatements

Sales
Sales
from
externalcustomers
Sales between segments

43,126

15,416

4,847

37,661

101,052－

101,052

99

1,043

80

－

1,223

△1,223－

Total

43,225

16,4604,928

37,661

102,276△1,223101,052

Segment profit (operating
3,597
600
887
340
5,426
3,752
△1,674
profit)(Note). The △1,674 million yen adjustment amount in the segment profits includes the total company cost △1,674 million yen. The
total company cost is an expense related to the management divisions of our company not belonging to the reporting
segment.
Consolidated cumulative period of this third quarter (from July 1, 2023 to March 31, 2024)(Units: Million yen)
Total amounton theAdjustment
quarterly
amountconsolidated(note)
financialstatements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

Overseas
RelatedBusiness

46,62916,133

4,822

37,984

105,570－

105,570

Sales between segments

102

1,299

85

－

1,487

△1,487－

Total

46,731

17,433

4,907

37,984

107,057△1,487

105,570

Total

Sales
Sales
from
customers

external

Segment profit (operating
4,428
616
480
676
6,203
4,501
△1,701
profit)(Note). The △ 1,701 million yen adjustment amount in the segment profits includes the total company cost △ 1,701 million yen. The
total company cost is an expense related to the management divisions of our company not belonging to the reporting
segment.
(Business Combination)
Consolidated accounting period of the third quarter (from July 1, 2022 to March 31, 2023)
The business combination with IKEDA Co., Ltd. (now Zero Plus IKEDA Co., Ltd.), which took place on May 31, 2022, wasaccounted for on a provisional basis in the two years ago consolidated fiscal year because the allocation of the acquisition consideration
was not yet complete. However, the allocation of the acquisition consideration was completed in the consolidated accounting periodof the previous third quarter.
Consolidated cumulative period of this third quarter (from July 1, 2023 to March 31, 2024)
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.

―12―

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 vehicletransportation business, and now we welcome So-ing Co., Ltd., which operates vehicle transportation business and auto auction
site operation business, to our group. In the vehicle transportation business, with the 2024 problem just around the corner, it isimperative to maintain and secure transportation capacity by reducing the total working hours of crew members and improving
transportation efficiency. Taking this acquisition of shares 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 and resources of our Group, we will expand the market share of this business and uncover newneeds 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
The business combination with SO-ING Co., Ltd. which took place on November 1, 2023, was accounted for on a provisional
basis in the second quarter of the current consolidated accounting period because the allocation of the acquisition was not yet
complete. However, the allocation of the acquisition consideration was completed in the third quarter of the current consolidated
accounting period.
In line with the finalization of this provisional accounting treatment, the amounts of assets and liabilities as of the acquisition
date have been revised. The main revisions are an increase of 1,060 million yen in intangible assets, an increase of 360 million yen
in non-current liabilities, and a decrease of 699 million yen in goodwill.
(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 assets (Note)

1,060

Other non-current assets

50

Current liabilities

800

Non-current liabilities

795

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

2,265
590

(Note) Intangible assets of 1,060 million yen identified in the business combination are measured based on assumptions such as
estimated future cash flows, discount rates, and the rate of decrease in sales from existing customers, and consist primarily ofcustomer-related assets of 1,060 million yen. The estimated useful life of the customer-related assets is 13 years.
Goodwill mainly consists of synergies with existing businesses and excess earning power expected to arise from the acquisition
that do not individually qualify for recognition. 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, general andadministrative 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
Expenditures from acquisition of investments in subsidiaries resulting in change in scope of
consolidation

1,200△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, profit
and loss information after the acquisition date of the business combination and the impact on the Group's business performance forthe current consolidated fiscal year are immaterial and are not disclosed.

―13―