Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2021 [Based on IFRS]
August 5, 2021
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 28, 2021 Scheduled date to commence dividend payments: September 29, 2021
Scheduled Date for the Submission of Annual Securities Report: September 29, 2021
Preparation of supplementary material on financial results:
Yes
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, 2021 (From July 1, 2020 to June 30, 2021)(1) Consolidated operating results (cumulative)
Sales revenue

FY2020FY2019(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%

92,17189,501

3.0
∆0.8

5,332
3,675

45.1
11.2

5,373
3,679

46.0
11.7

3,614
2,387

51.4
43.5

3,626
2,374

52.7
43.2

3,949
2,376

66.2
88.0

Basic earnings of thisyear per share

Diluted earnings of this year
per share

Profit ratio attributable toTotal capital profit ratio
before tax

equity shareholders of thecompany

Sales revenue operating
profit ratio

Yen

Yen

%

%

%

FY2020216.55215.85

13.6

11.3

5.8

FY2019142.30141.98

9.9

8.8

4.1

(Reference) Investment gain / loss through equity method;

FY2020: 42 million yen,

FY2019: 56 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

FY202050,93528,29828,28055.5

1,688.83

FY201944,51424,894

24,86455.9

1,490.16(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen
FY20208,594
FY2019Cash flow from investing
activities
Million yen

Cash flow from financing
activities
Million yen△3,104△4,364

Cash and cash equivalents at endof yearMillion yen
5,904△2,067△3,157

4,779

6,538

2. Cash dividends
Annual dividends per share
1st quarterend

2nd quarterend

Yen
FY2019FY2020
FY2021 (forecast)-------

3rd quarterend

Yen
15.00
15.00
15.00

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

%

%

20.60
39.10
32.80

35.60
54.10
47.80

600
911

25.0
25.0

2.5
3.4

25.0

3. Forecast of consolidated financial results for the year ending June 30, 2022 (From July 1, 2021 to June 30, 2022)

Sales revenue

Full year

Millions of yen
95,000Operating income%
3.1-

Millions of yen
4,750%∆10.9-(Percentages indicate year-on-year changes)
Profit attributable to equity
shareholders of the
Basic earnings per sharecompany

Profit before tax
Millions of yen
4,750

%
∆11.6

Millions of yen
3,200

%
∆11.8

Yen
191.09(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  Co. (Company name),
Exclusions  Co. (Company name)(2) Changes in accounting policies, changes in accounting estimates Changes in the accounting policies required by IFRS:No Changes in the accounting policies due to reasons other than ① :No

 Changes in the accounting estimatesNo:(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)

FY202017,560,242 shares

FY201917,560,242 shares

FY2020
FY20201,018,911 shares
16,745,846 shares

FY2019FY20191,018,869 shares
16,685,873 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2021 (From July 1, 2020 to June 30, 2021)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2020FY2019Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

56,22655,513

1.3
∆1.3

2,557
1,522

67.9
∆51.4

3,780
1,513

Basic earnings per share

Net Income% Millions of yen
149.8
∆16.4

2,626
881

%
197.8
165.7

Diluted earnings per share

FY2020Yen
158.81Yen-

FY201953.34-(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY202035,807
23,121FY201933,673
20,917(Reference) Company’s Equity
FY2020: 23,121 million yen

Equity ratio
%
64.6
62.1
FY2019: 20,917 million yen

Net assets per shareyen
1,397.80
1,264.59

Earnings summary is not within the scope of audit by a certified public accountant or auditor
Explanation 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.

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 .......................................................................................................... 5
3. 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 flow ...................................................................................................................... 11(6) Notes on consolidated financial statements ........................................................................................................... 12(Notes on going concern assumption) .............................................................................................................. 12(Changing the accounting principles) ................................................................................................................ 12(Segment information) ...................................................................................................................................... 12(Information per share) ..................................................................................................................................... 14(Significant subsequent events) ........................................................................................................................ 14-1-

1. Summary of operating results(1) Summary of operating results of the current fiscal period
Japan's economy in the current consolidated fiscal year has gradually been on a recovery trend, and although theconditions remained severe, particularly in service consumption due to the impact of the COVID-19 Pandemic.
In the domestic automobile market, the total number of new vehicles sales increased at 104.4% (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). In the first quarter
consolidated accounting period, sales decreased to 85.4% as a result of a slump in demand due to the impact of the
COVID-19 Pandemic in addition to the loss of the effect of the last minute surge in demand before the consumption
tax rate increase in the previous year. However, from the second quarter to the third quarter consolidated accounting
period, sales increased compared to the same period of the previous year due to the reversal this year brought by
the reaction to the consumption tax rate increase in the previous year, as well as the recovery trend from the impactof the COVID-19 Pandemic. On the other hand, in the fourth quarter consolidated accounting period, sales also
increased compared to the same quarter from the previous year, but sales was very weak under the first declarationof emergency in the previous year, as well as sales has been greatly affected by the reduction in automobile
production due to the shortage of semiconductors and the supply shortage of automobile parts caused by the respreading of the COVID-19 Pandemic in Southeast Asia in this year. The number of registered used cars increasedby 102.8% compared to the same period of the previous year due to an estimated increase in demand as a result ofa partial shift in the means of transportation from public transportation to private vehicles due to the COVID-19
Pandemic.
Sales revenue increased in the automobile-related business as a result of an increase in the number ofcommissions for vehicle transportation compared to the previous year and steady growth in used car exports to
Malaysia, while operating profit increased in all segments due in part to recovery from the COVID-19 Pandemic.
As a result, the business results of our group are as follows: sales of 92,171 million yen (103.0% compared to thesame quarter from the previous year) and operating profit of 5,332 million yen (145.1% compared to the same quarter
from the previous year). Also, profit before taxes was 5,373 million yen (146.0% compared to the same quarter fromthe previous year), and the profit attributable to the equity shareholders of the company was 3,626 million yen(152.7% compared to the same quarter from the previous year).

(Number of units related to domestic distribution of automobiles)
Domestic

July 2019 to June 2020

Units: vehicles
July 2020 to June 2021

Compared to theprevious year

Number of new vehicles
sold
Domestic
manufacturer(out of this, Nissan
Motor)
Foreign manufacturer*14,384,762

4,577,218

104.4%*1(491,866)(483,552)(98.3%)*2

264,809278,207105.1%

4,649,571

4,855,425

104.4%

Total of new vehicle
sales
Number of registered
used cars
Registered vehicles*3

3,746,472

3,909,258

104.3%

Light vehicles*4

3,067,767

3,094,802

100.9%

6,814,239

7,004,060

102.8%

229,924

207,818

90.4%

Total number of used
vehicles registered
Number of vehicles
permanently deleted

*3

-2-

ExportNew vehicles ofdomestic manufacturers
Used vehicles(registeredvehicles)July 2019 to June 2020

July 2020 to June 2021

Compared to theprevious year*1

4,034,610

4,140,514

102.6%*5

1,439,123

1,177,126

81.8%*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 theJapan Automobile Dealers Association statistics[Fuel retail price]

Unit: Yen / L

National average

July 2019 to June 2020

July 2020 to June 2021

Compared to theprevious year

Light oil

*6

126.5

121.0

95.7%

Regular petrol

*6

146.1

140.6

96.2%

*6 Calculated from statistics of Agency for Natural Resources and Energy (fuel used by our company for transport is mainly light oil)

The segment business results are as follows.
<Automobile-related businesses>
For vehicle transportation, which is the core business, revenue increased due to the number of units fortransportation contracts as a result of an increase in new vehicle sales and used vehicle registrations. Also, there
was an increase in revenue in the used vehicle export business as a result of steady growth, and an overall increase
in revenue in the automotive related businesses.
In the vehicle transportation business there are management issues such as the creation of a company that is
worth working for and the promotion of work style reforms aimed at reducing total working hours, increases in laborcosts and hiring costs to cope with potential driver shortages, and increases in vehicle costs due to the increase in
the number of vehicles and aging of transportation equipment, working to achieve systematic vehicle allocation andoptimize the operation of nationwide distribution network, while at the same time thoroughly implementing costmanagement. Segment profit increased due to an increase in the number of units for transportation contracts andthe number of used vehicle exports, as well as a decline in unit fuel costs compared to the same period from theprevious year, despite a loss recorded due to the marine accident involving the car carrier ship off the coast of
Imabari, Ehime Prefecture.
As a result, the overall sales revenue in the automobile related businesses was 68,039 million yen (105.2%
compared to the same period from the previous year), and the segment profit was 5,876 million yen (108.3%
compared to the same quarter from the previous year).
<Human resource businesses>
Regarding the pick-up service business, sales increased due to the recovery from the impact of the COVID-19
pandemic, but the driver dispatch business and the airport-related personnel business saw a decrease in sales dueto the continued suspension of employment contracts caused by the COVID-19 pandemic. Segment profit increased
as a result of efforts to reduce SG&A expenses and the recording of employment adjustment subsidies.
As a result, the sales revenue of the overall human resource business was 17,946 million yen (96.5% comparedto the same quarter from the previous year), and the segment profit was 833 million yen (128.0% compared to thesame quarter from the previous year).
<General cargo businesses>
Revenue in the port cargo handling business increased due to commission of cargo handling of materials forbiomass power plants and biomass power generation fuel, while revenue increased in the transportation /warehousing business due to the acquisition of new customers, but in the CKD business, revenue decreased due tothe temporary suspension of shipments to the automobile manufacturing plant in Thailand, and a result, there wasslight decrease in overall revenue in the general cargo business.
In the port cargo handling business, profit increased due to the contribution of cargo handling related to biomass
power generation, and in the transportation / warehousing business, profit increased due to price revisions and theacquisition of new customers. In the CKD business, profits increased due to the reduction of fixed costs and the-3-compensation of costs. Segment profit in the overall general cargo business also increased.As a result, the sales
revenue of the overall general cargo business was 6,185 million yen (99.4% compared to the same period from theprevious year), and segment profit was 687 million yen (188 million yen loss in the same period from the previousyear).
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 "3.
Consolidated Statements and Major Notes (6) Notes on Consolidated Statements (Segment information)" and totaled
2,065 million yen.
(2) Summary of financial position of the current fiscal period
Status of assets, liabilities, and equity(Assets)
Current assets increased 1,872 million yen (10.3%) compared to the end of the previous consolidated fiscal year
and were 20,060 million yen.
This was mainly due to an increase in cash and cash equivalents of 1,125 million yen, and an increase in inventoriesof 415 million yen.
Non-current assets increased by 4,548 million yen (17.3%) compared to the end of the previous consolidated fiscal
year to 30,875 million yen.
This was mainly due to an increase of tangible fixed assets of 4,749 million yen due to an increase in right-of-use
assets, even if goodwill and intangible assets decreased by 305 million yen.
As a result, total assets increased by 6,420 million yen (14.4%) compared to the previous consolidated fiscal year
to 50,935 million yen.
(Liabilities)
Current liabilities increased 246 million yen (1.7%) compared to the end of the previous consolidated fiscal year to
14,819 million yen.
This was mainly due to an increase of 301 million yen in trade and other payables, despite a decrease of 47 million
yen in other current liabilities.
Non-current liabilities increased by 2,769 million yen (54.9%) compared to the end of the previous consolidated
fiscal year to 7,817 million yen.
This was mainly due to other financial liabilities increasing by 2,895 million yen due to an increase in lease liabilities,
despite a decrease of 253 million yen in retirement benefits liabilities.
As a result, total liabilities increased by 3,016 million yen (15.4%) compared to the end of the previous consolidated
fiscal year to22,636 million yen.
(Equity)
Equity increased by 3,404 million yen (13.7%) compared to the end of the previous consolidated fiscal year to
28,298 million yen.
This is mainly because profit margin increased by 3,118 million yen due to the totalling 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 1,125 million yen compared to the end of the previous consolidated accounting fiscal year to 5,904
million yen.
Each cash flow status category during current consolidated cumulative period and their causes are as follows.
(Cash flow from operating activities)
Funds obtained from operating activities were 8,594 million yen (there were income of 6,538 million yen during thesame period of the previous year).
The main cause of the increase in funds were 3,614 million yen for profit from the current period and 4,581 million
yen for depreciation and amortization expenses which are non-fund expenses; the main cause of the decrease infunds was 1,441 million yen for payment of corporate income tax.
(Cash flow from investment activities)
Net cash used in investment activities was 3,104 million yen (expenditures of 2,067 million yen during the previous
consolidated cumulative period).
The main itemization breakdown for expenditures was 2,968 million yen for acquisition of tangible fixed assets andinvestment property.
(Cash flow from financing activities)
Funds used due to financing activities were 4,364 million yen (expenditure of 3,157 million yen in the previous
consolidated cumulative period).
The main itemization breakdown for expenditures were 3,287 million yen lease liabilities payments and 588 million-4-yen for dividends.

(4) Future outlook
In the next consolidated cumulative period, a gradual recovery from the impact of the COVID-19 pandemic is
expected, but it is expected that the number of commissions for vehicle transportation and pre-delivery maintenanceand inspection will decrease in 2021 due to a reduction in automobile production caused by the semiconductor
shortage and the supply shortage of automobile parts caused by the re-spreading of the COVID-19 Pandemic in
Southeast Asia. Also, operating profit is expected to be affected by the upward trend in unit fuel costs, in addition to
the loss of employment adjustment subsidies.
Meanwhile, Zero Scm Logistics Co., Ltd. (Beijing) in China became a subsidiary on July 1, 2021, resulting in a netincrease in sales revenue and operating profit.
The performance forecast June 2022 period is estimated to be 95,000 million yen of sales earnings, 4,750 million
yen of operating profits, 4,750 million yen of profit before tax deduction and 3,200 million yen in net income attributable
to the equity shareholders of the company.
* The above forecast is judged by the company to be rational based on information procurable as of now and theactual 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(Units: Million yen)
End of the previous consolidated End of the current consolidated
accounting year
accounting period(June 30, 2020)(June 30, 2021)
AssetsCurrent assets
Cash and cash equivalents

4,779

5,904

Trade and other receivables

12,607

12,914Inventories

511

927

Other financial assets

10

7

Other current assets

279

306

18,187

20,060

Tangible fixed assets

17,146

21,895

Goodwill and intangible assets

2,626

2,320

Investment properties

3,275

3,262

984

788

1,487

1,686

Other non-current assets

350

541

Deferred tax assets

456

379

Total non-current assets

26,32730,875

Total assets

44,51450,935

Total current assets
Non-current assets

Investment accounting processed with equity
methodOther financial assets-6-

(Units: Million yen)
End of the previous consolidated End of the current consolidated
accounting year
accounting period(June 30, 2020)(June 30, 2021)
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

5,875

6,283

Loans

2,028

1,572

lease liabilities

2,847

3,066

931

1,161

2,889

2,735

14,572

14,819

55

22

3,069

5,964

79

80

Retirement benefits liabilities

1,216

962

Other non-current liabilities

276

308

Deferred tax liabilities

351

478

Total non-current liabilities

5,048

7,817

Total liabilities

19,62022,636

Capital

3,390

3,390

Capital surplus

3,394

3,437

Treasury stock

△681

△681

70

324

18,69021,80924,86428,28029

18

Total Equity

24,89428,298

Total liabilities and equity

44,51450,935

Income taxes payable, etc.
Other current liabilities
Total current liabilities
Non-current liabilities
Loans
Lease liabilities
Other financial liabilities

EquityOther components of funds
Retained earnings
Total equity attributing to the equity
shareholders of the company
Non-controlling interest-7-(2) Consolidated statement of profit or loss
(Units: Million yen)Previous consolidated
cumulative period(July 1, 2019 to June 30, 2020)

Current Consolidated
cumulative period(July 1, 2020 to June 30, 2021)

Sales revenue

89,501

92,171

Cost of sales△77,100△78,768

Gross Profit

12,401

13,402△9,106△8,749Other income

475

985

Other expenses

△95

△306

3,675

5,332

17

38

△69

△38

56

42

3,679

5,373

△1,292△1,759

2,387

3,614

2,374

3,626

12

△11

2,387

3,614

Basic earnings per share (yen)142.30216.55

Basic earnings per share after dilution (yen)141.98215.85

Selling, general and administrative expenses

Operating profit
Financial profit
Financial expenses
Investment gain / loss through equity method
Profit before tax
Corporate income tax expenses
Profit of the year
Attribution of the profits of the year:
Equity shareholders of the company
Non-controlling interest
Profit of the year
Earnings per share-8-(3) Consolidated statement of profit or loss and other comprehensive income(Units: Million yen)Previous consolidated
cumulative period(July 1, 2019 to June 30, 2020)

Current Consolidated
cumulative period(July 1, 2020 to June 30, 2021)

2,387

3,614

Remeasurement of defined benefit system

154

80

Net change amount of fair value of equity
instruments specified by measured by fairvalue through other comprehensive income

△107

176

47

257

△58

77

Total of the items which may be transferredover to profit or loss

△58

77

Other comprehensive income after tax deduction

△10

335

2,376

3,949

2,363

3,961

12

△11

2,376

3,949

Profit of the year
Other comprehensive income
Items not transferring over to profit or loss:

Total of the items not transferring over to profit
or loss
Items which may be transferred over to profit orloss
Other comprehensive income equity ofaffiliated company accounted for by the equity
methodComprehensive 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 (July 1, 2019 to June 30, 2020)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2019

CapitalCapitalsurplus

3,390

3,362

Total
FinancialequityNonConversio assets
attributing controllingnmeasured Remeasur
Treasury
Retainedto theinterest
difference
by fair
ement of Total other earnings
stock
equityofvalue
defined component
shareholdebusiness throughbenefit s of funds
rs of theactivities
othersystemcompany
overseas comprehen
sive profits
△687

△50

286

－

Profit of the year
Other comprehensive
incomeComprehensive income forthe year

－

－

－

31

236

16,75423,05616

23,072

－

2,374

2,374

12

2,387

△58

△107

154

△10

△58

△107

154

△10

2,374

2,363

－

△593

△593

△593

38

38
－

Dividends of the surplus
Share-based paymenttransactions, etc.
Transfer from othercapital component to
Retained earnings

Total
Equity

6

△10

－
△0

△154

△155

155

－

△10
12

2,376

Total transactions, etc. withthe owners

－

31

6

－

△0

△154

△155

△437

△554

－

△554

Balance on June 30, 2020

3,390

3,394

△681

△108

179

－

70

18,69024,86429

24,894Current consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2020

CapitalCapitalsurplus

3,390

3,394

Total
FinancialequityNonConversio assets
attributing controllingnmeasured Remeasur
Treasury
Retainedto theinterest
difference
by fair
ement of Total other earnings
stock
equityofvalue
defined component
shareholdebusiness throughbenefit s of funds
rs of theactivities
othersystemcompany
overseas comprehen
sive profits
△681

△108

179

－

Profit of the year
Other comprehensive
incomeComprehensive income forthe year－－－

18,69024,86429

24,894

－

3,626

3,626

△11

3,614

176

80

335

77

176

80

335

3,626

3,961

－

△588

△588

△588

－

△0

△0

－

43

43
－

△0

Share-based paymenttransactions, etc.
Transfer from othercapital component to
Retained earnings

70

77

Dividends of the surplus
Acquisition of treasury
stock

Total
Equity

43

335

△80

△80

80

－

335
△11

3,949

Total transactions, etc. withthe owners

－

43

△0

－

－

△80

△80

△508

△545

－

△545

Balance on June 30, 2021

3,390

3,437

△681

△31

355

－

324

21,80928,28018

28,298- 10 -

(5) Consolidated statement of cash flow
(Units: Million yen)
Current Consolidated
cumulative period(July 1, 2020 to June 30,
2021)

Previous consolidated
cumulative period(July 1, 2019 to June 30,
2020)
Cash flow from operating activities
Profit of the year

2,387

3,614

Depreciation and amortization costs

4,394

4,581

Interest income and dividend

△12

△13

51

38

Investment gain / loss through equity method

△56

△42

Corporate income tax expenses
Increase / decrease of trade receivables (△ is anincrease)
Increase / decrease of inventories (△ is an increase)

1,292

1,759

345

△62

411

△415

△602

374

△275

△127

△101

354

7,833

10,061

12

13

△51

△38

△1,255△1,441

6,538

8,594

△1,889△2,968

13

103

△105

△89

Payment for loans receivable

△36

△16

Proceed from loans receivable

19

36

△68

△169

△2,067△3,104

800

△435

△154

△53

△3,209△3,287

△593

△588

－

△0

△3,157△4,364

Increase / decrease in of cash and cash equivalents (△is a decrease)

1,313

1,125

Cash and cash equivalents at the beginning of the year

3,465

4,779

Balance of cash and cash equivalents at the end of the
year

4,779

5,904

Interest expense

Increase / decrease of trade payables(△ is a decrease)
Increase / decrease in retirement benefits liabilities (△is a decrease)
Other
SubtotalInterest and dividend received
Interest paid
Corporate income tax paid
Cash flow from operating activities
Cash flow 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

Other
Cash flow from investment activities
Cash flow from financing activities
Net increase or decrease of short-term loans (△ is adecrease)
Repayment of long-term loans
Repayment of lease debts
Dividend paid
Payment for acquisitioning of treasury stock
Cash flow from financing activities- 11 -

(6) Notes on consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Changing the accounting principles)(Consolidated financial statements)
In the previous fiscal year, "lease obligations", which was included in "other financial liabilities" of "non-current
liabilities", since its monetary importance has increased, we decided to presented separately from the current
fiscal year. In order to reflect this change in presentation method, the consolidated financial statements for theprevious consolidated fiscal year have been reclassified.
As a result, the 2,847 million shown in “other financial liabilities” under “current liabilities” in the consolidated
statement of financial position for the previous consolidated fiscal year has been reclassified to “lease liabilities”
at 2,847 million. And the 3,148 million shown in “other financial liabilities” of “non-current liabilities” has been
reclassified as “lease liabilities” of 3,069 million and “other financial liabilities” of 79 million.

(Segment information)(1) Summary of report segment
In the report segment of our group, financial information isolated from the structural unit of our group can beprocured 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”, “humanresources business” and “general cargo business”.
Main services belonging to each report segment
Segment

Main service

Automobile-related businesses

Transport of automobiles, repair, used cars auction, used cars export

Human resource businesses

Temporary staffing of drivers, personal car driving management

General cargo businesses

General consumer goods transport and maintenance, loading and unloading ofcoal, 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.
Important accounting policies.
The sale earnings between the segments are based on market pricing.
Previous consolidated accounting period (July 1, 2019 to June 30, 2020)(Units: Million yen)
Total amount
Automobilerelated

Human
resource

Generalcargobusinesses

businesses

businesses

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)

5,426

650

△188

5,888

△2,212

3,675

Sales revenue from externalcustomers
Sales revenue between
segments- 12 -

Total

Adjustment
on theamount (note) consolidated
1

financialstatements

Segment assets

26,587

6,995

8,326

41,9102,604

44,514

Increased amount in non-current
assets (note) 2

2,493

58

492

3,045

17

3,062

Depreciation and amortization
costs (note) 2

2,791

430

821

4,043

350

4,394

Other items(Note) 1. The adjusted amount is as follows.
① The △ 2,212 million yen adjusted amount of segment profit includes total company cost of △ 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. Depreciation and amortization expenses include amounts related to right-of-use assets. Non-current assets do not include
financial assets, deferred tax assets etc. The amounts related to right-of-use assets are included.
3. About some of trucks and trailers using for the Group's automobile-related business, effective from the current consolidated
fiscal year, the useful life period has been changed. Due to this, the sales profit increased by 326 million yen in the automobilerelated business for the current consolidated cumulative period compared to the case of using the conventional useful life
period.

Current consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)
Automobile-

Human

Generalrelatedbusinesses

resourcebusinesses

cargobusinesses

Total

Adjustment

Total amounton theamount(note) 1

consolidated
financialstatements

Sales revenue from external

68,03917,946

6,185

92,171－

92,171

50

1,063

458

1,572

△1,572－

Total

68,08919,0106,643

93,744△1,572

92,171

Segment profit (operating profit)

5,876

833

687

7,397

△2,065

5,332

Segment assets

30,497

7,733

8,915

47,146

3,789

50,935

7,060

858

1,568

9,486

251

9,738

2,931

414

939

4,286

294

4,581

customers
Sales revenue between
segments

Other items
Increased amount in non-current
assets (note) 2
Depreciation and amortization
costs (note) 2(Note) 1. The adjusted amount is as follows.
① The △ 2,065 million yen adjusted amount of segment profit includes total company cost of △ 2,065 million yen and 0 million
yen of transaction elimination between segments. The total company cost is an expense related to the management divisionsof our company not belonging to the reporting segment.
② 3,789 million yen adjusted amount of segment assets includes total company assets of 11,619 million yen not allotted into
any of report segment and △ 7,830 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. Depreciation and amortization expenses include amounts related to right-of-use assets. Non-current assets do not include
financial assets, deferred tax assets etc. The amounts related to right-of-use assets are included.

(3) Regional information① The breakdown of sales revenue from external customers by region are as follows.
Previous consolidated accounting period (July 1, 2019 to June 30, 2020)(Units: Million yen)
- 13 -

Japan

Malaysia (note)
78,763

Other

Total

10,278459

89,501

Current consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)Japan

Malaysia (note)
79,134

Other

Total

13,022

15

92,171② Non-current assets
There are no non-current assets present outside Japan and hence, this item is not applicable.
(4) Information on major customers
Previous consolidated accounting period (July 1, 2019 to June 30, 2020)(Units: Million yen)
Name or title of customer

Sales revenue

Nissan Motors Group (Note)

Related segment
17,553

Automobile-related businesses(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Autech Japan Co. Ltd. andNissan Motors Sales Co. all over the country.
Current consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)
Name or title of customer
Nissan Motors Group (Note)

Sales revenue

Related segment
18,076

Automobile-related businesses(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Autech Japan Co. Ltd. andNissan 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
Previous consolidated cumulative Current Consolidated cumulative
periodperiod(From July 1, 2019
(From July 1, 2020
to June 30, 2020)
to June 30, 2021)
Profit for the year attributable to equity shareholders
2,374
3,626
of the company (million Yen)
Weighted average number of shares (thousand
shares)Basic earnings per share (yen)16,685

16,745142.30216.55(2) Basic earnings per share after dilution
Previous consolidated cumulative Current Consolidated cumulative
periodperiod(From July 1, 2019
(From July 1, 2020
to June 30, 2020)
to June 30, 2021)
Profit for the year used for calculation of earnings

2,374

3,626

37

54

Weighted average number of shares after dilution(thousand shares)

16,744

16,800

Basic earnings per share after dilution (yen)141.98215.85per share after dilution (million Yen)
Impact of dilutive potential common stock
Stock benefit trust BBT (thousand shares)(Significant subsequent events)
At the meeting of the Board of Directors held on June 24, 2021, the Company resolved to acquire a portion of the- 14 -

equity interest (40%) stake of Zero Scm Logistics Co., Ltd. (Beijing), an equity-method affiliate, to make it aconsolidated subsidiary effective July 1, 2021.
1. Outline of Merger and Acquisition(1) Main reasons for the merger (to be replaced with the business proposal)
Our group has set the promotion of overseas business as one of its key strategies, and we believe that thegrowth of automobile transportation in China will continue to increase in the future, and by making Zero Scm
Logistics Co, Ltd. (Beijing) a consolidated subsidiary of the company from an equity method affiliate animportant transportation base, we will further strengthen our operational structure and strive to further
enhance the competitiveness of our overseas business in the future.
Since its establishment on April 29, 2004, Zero Scm Logistics has been engaged in the transportation offinished vehicles in China for Japanese, European and American automobile manufacturers, mainly by land,
and also by sea rail. As related services, they also handle customs clearance, storage, PDI (pre-delivery
maintenance and inspection), and other services.
In China, which has become the world's largest automobile market, changes such as the evolution of CASE,
MaaS, and carbon neutrality are expected, and in order to respond to such changes in a timely manner, theCompany aims to speed up the decision-making process and further expand its business by making it aconsolidated subsidiary. Specifically, as the used vehicle market is expected to develop in China as well, weare considering a full-scale entry into the used vehicle transportation business, and we are also considering
the establishment of an integrated domestic and overseas transportation system (transportation of finishedvehicles in China → export customs clearance → maritime transportation → import customs clearance →finished vehicle transportation, PDI, installation, registration and delivery in Japan) in the Zero group,
assuming that electric cars produced in China will be imported into Japan in the future.
(2) Date of merger
July 1, 2021
(3) Legal form of combined companies
Get of equity interest for cash(4) No change in nameafter merger(5) Percentage of voting rights acquired
Percentage of voting rights held immediately before the merger: 25%
Percentage of voting rights additionally acquired on the date of merger: 40%
Percentage of voting rights after acquisition: 65%- 15 -