Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2024 [Based on IFRS]
August 8, 2024
Company name:ZERO CO., LTD.
Stock Exchange Listing: Tokyo
Stock code:9028
URL
http://www.zero-group.co.jp/
Representative:
President & CEO
Toshihiro Takahashi
Inquiries:
General Manager of Corporate Planning Department
Takashi Date
(TEL) 044-520-0106
Scheduled Date of Ordinary General meeting of Shareholders:
September 26, 2024 Scheduled date to commence dividend payments: September 27, 2027
Scheduled Date for the Submission of Annual Securities Report: September 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (For analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the fiscal year ended June 30, 2024 (From July 1, 2023 to June 30, 2024)(1) Consolidated operating results (cumulative)
Sales revenue

FY2023/2024
FY2022/2023(Percentages indicate year-on-year changes)

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

140,751
132,861

5.9
24.1

6,222
5,074

22.6
29.7

6,227
5,080

Basic earnings of thisyear per share

Diluted earnings of this year
per share

Profit attributable toequity shareholdersof the company

Net Income% Millions of yen

22.6
28.7

% Millions of yen

4,204
3,453

21.7
37.0

% Millions of yen

4,150
3,437

20.7
35.6

Total capital profit ratio
before tax

Profit ratio attributable toequity shareholders of thecompany

Total comprehensive
income of the fiscal
year

4,837
3,815

%

26.8
40.3

Sales revenue operating
profit ratio

Yen

Yen

%

%

%

FY2023/2024

245.61

-

11.8

9.8

4.4

FY2022/2023

203.96

10.9

9.1

3.8

(Reference) Investment gain / loss through equity method;

FY2023/2024: △13 million yen,

FY2022/2023: △2 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

FY2023/2024

70,73337,87337,20952.6

2,199.60

FY2022/2023

56,55833,83633,28558.9

1,971.95

Cash flow from financing
activities
Million yen

Cash and cash equivalents at endof yearMillion yen(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen

Cash flow from investing
activities
Million yen

FY2023/2024

11,233△4,663△824

11,316FY2022/2023

8,778△2,167△6,2905,475

2. Cash dividends
Annual dividends per share
1st quarterend

2nd quarterend

Yen
FY2022/2023
FY2023/2024
FY2024/2025(forecast)

3rd quarterend

Yen

15.00
15.00
43.00

-------

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

%

%

36.00
46.40
64.40

51.00
61.40
107.40

872
1,050

25.0
25.0
33.0

2.7
2.9

3. Forecast of consolidated financial results for the year ending June 30, 2025 (From July 1, 2024 to June 30, 2025)

Sales revenue
Full year

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

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

135,000

△4.1

8,100

30.2

8,100

30.1

5,500

32.5

325.46

(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)

FY2023/2024

17,560,242 shares

FY2022/2023

17,560,242 shares

FY2023/2024
FY2023/2024

920,782 shares
16,898,921 shares

FY2022/2023
FY2022/2023

956,982 shares
16,856,142 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2024 (From July 1, 2023 to June 30, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2023/2024
FY2022/2023

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

63,50058,967

7.7
11.0

2,336
2,069

12.9
△4.6

4,151
2,648

Basic earnings per share

Net Income% Millions of yen
56.8
20.9

2,848
1,880

%
51.5
35.7

Diluted earnings per share

FY2023/2024

Yen
171.34Yen-

FY2022/2023

113.36-(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY2023/2024
45,944
27,119FY2022/2023
41,77625,087(Reference) Company’s Equity
FY2023/2024: 27,119 million yen

Equity ratio

Net assets per share
%
yen
59.0
1,629.84
60.1
1,511.00
FY2022/2023: 25,087 million yen<Reasons for the Difference Between Current and Previous Period’s Performance Figures>
In the current fiscal year, our company experienced a recovery trend in the number of domestic vehicle transportations, revised the fees in the vehicle transportation
business. In addition, the number of pre-delivery inspections in the maintenance business increased. As a result, there is a difference between the operating income,profit before tax, and net income of the previous fiscal year and those of the current fiscal year.
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.

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Updated: 2024/07/29 19:28:50

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 .................................................................................................... 5(4) Future outlook ............................................................................................................................................................. 6
2. Basic view on selection of accounting standards .............................................................................................................. 6
3. Consolidated financial statements and major notes .......................................................................................................... 7(1) Consolidated statement of financial position ............................................................................................................... 7(2) Consolidated statement of profit or loss ...................................................................................................................... 9(3) Consolidated statements of comprehensive income .................................................................................................. 10(4) Consolidated statement of changes in equity ............................................................................................................. 11(5) Consolidated statement of cash flow ......................................................................................................................... 12(6) Notes on consolidated financial statements ............................................................................................................... 14(Notes on going concern assumption) ......................................................................................................................... 14(Changes in Presentation) ............................................................................................................................................ 14(Segment information) ................................................................................................................................................. 14(Information per share) ................................................................................................................................................ 17(Business Combination)............................................................................................................................................... 18(Non-Financial Asset Impairment Loss) ...................................................................................................................... 19(Significant subsequent events) ................................................................................................................................... 19―1―

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1. Summary of operating results(1) Summary of operating results of the current fiscal period
Japan's economy during the current consolidated accounting year was gradually picking up or even recovering,
despite some downward pressure from the Noto Peninsula earthquake.
In the domestic automobile market, the total number of new vehicle sales decreased to 97.6% (statistical data fromthe Japan Automobile Manufacturers Association) compared to the previous consolidated fiscal year (hereinafterreferred to as the same period last year). The Group has been affected by the suspension of shipments due to a seriesof misconduct at some finished vehicle manufacturers that occurred since the end of 2023. The number of used
vehicle registrations and sales

increased to 102.3% compared to the same period last year, owing to the recovery

in new vehicle sales in the first half of the year and the strong demand for used vehicle exports due to the weak yen.
Revenues increased mainly in the domestic automobile related businesses. Operating profit also increased, mainlyin the domestic automobile-related business.
As a result, the business results of our group are as follows: sales revenue of 140,751 million yen (105.9%
compared to the same quarter from the previous year) and operating profit of 6,222 million yen (122.6% comparedto the same quarter from the previous year). In addition, the profit before taxes was 6,227 million yen (122.6%
compared to the same quarter from the previous year), and the profit of the quarter attributable to the equity
shareholders of the company was 4,150 million yen (120.7% compared to the same quarter from the previous year).
(Number of units related to domestic distribution of automobiles)
Units: vehicles
Domestic

July 2022 to June 2023

July 2023 to June 2024

Compared to theprevious year

Number of new vehicles soldDomestic manufacturer＊１

4,317,258

4,216,427

97.7％(out of this, Nissan Motor) ＊１(471,549)(475,873)(100.9％)Foreign manufacturer

248,485

239,549

96.4％

4,565,743

4,455,976

97.6％

＊２

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

3,483,546

3,625,231

104.1％

Light vehicles*42,829,497

2,835,028

100.2％

6,313,043

6,460,259

102.3％

Total number ofvehicles registered

used

ExportJuly 2022 to June 2023

July 2023 to June 2024

Compared to theprevious year

New vehicles of domestic
manufacturers*1

4,104,045

4,416,917

107.6％

Used vehicles
vehicles)*5

1,322,614

1,596,547

120.7％(registered*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―

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Updated: 2024/07/29 19:28:50(Fuel retail price]
Unit: Yen / L
National average

July 2022 to June 2023

July 2023 to June 2024

Compared to theprevious year

Light oil

*6

148.8

155.7

104.6％

Regular petrol

*6

168.8

176.0

104.3％*6 Calculated from statistics of Agency for Natural Resources and Energy (fuel used by our company for transport is mainly lightoil)

The segment business results are as follows.
<Domestic automotive related businesses>
For vehicle transportation, which is the core business, the number of units for transportation contracts for used
vehicle increased in line with the recovery in used vehicle registrations and sales, despite the turmoil in the used
vehicle industry in the first half of the year and the suspension of shipments due to misconduct issues at some newvehicle manufacturers in the second half, resulting in an overall increase in revenues in the domestic automobilerelated business.
In addition to higher recruitment and labor costs due to higher consumer price index and minimum wage in the
post-COVID-19 environment where the ratio of active job openings for crew members has increased, vehicle costs
increased due to investments in transportation equipment in anticipation of the shift to EVs. On the other hand, inJanuary 2024, we revised the fees in the vehicle transportation business. The number of pre-delivery inspections in
the maintenance business increased, and in the construction machinery transportation business, requests fortransportation from rental construction machinery companies increased due to the Noto Peninsula earthquake.
Furthermore, the consolidation of SO-ING Co., Ltd. as a subsidiary in November 2023 led to a net increase in its
profits. As a result, segment profit increased.
As a result, the overall sales revenue in the domestic automotive business was 63,775 million yen (109.6%
compared to the same period from the previous year), and the segment profit was 6,994 million yen (138.2%
compared to the same quarter from the 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 arepromoting the construction of a system to realize systematic allocation of vehicles. We have also launched and arepromoting a new digitalization project in which crew members record the condition of vehicles entrusted bycustomers 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 electricallypowered, and we will sequentially introduce the equipment. In addition, as the shift to EVs accelerates, we areconsidering and promoting the construction of infrastructure, including the implementation of ancillary operations
for EV vehicle transportation.
In response to the "New Normal", we are addressing the "2024 Logistics Problem" by maintaining the driving
hours of crew members while promoting the division of labor in cargo handling to reduce indirect time other thandriving hours. At the same time, we are also advancing the new recruitment of crew members and the efficientutilization of transportation equipment. However, in the midst of the chronic shortage of crew members, combinedwith rising consumer price indexes, minimum wages, and unit labor costs, it is necessary to maintain and improve
compensation while reducing the total working hours of crew members, and to introduce new crew members andtransportation equipment to compensate for the decrease in transportation capacity due to reduced total working
hours.
―3―

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Updated: 2024/07/29 19:28:50<Human resource businesses>
The pickup service business saw an increase in revenue due to the acquisition of new contracts and the expansionof the MaaS (Mobility as a Service) business. The human resource services business experienced revenue growth
due to an increase in the number of dispatched drivers. The airport-related human resource business also saw anincrease in revenue as the number of dispatched personnel rose, driven by the recovery in the number of aircraft
arrivals and departures and the promotion of foreign worker recruitment. As a result of the increased revenue in eachbusiness, segment profit also increased.
As a result, the sales revenue of the human resource business was 21,638 million yen (104.9% compared to thesame quarter from the previous year), and the segment profit was 810 million yen (108.0% compared to the samequarter from the previous year).
<General cargo businesses>
In the port cargo handling business, revenue from fuel cargo handling for biomass power plants increased due toacquisition of cargo handling for new power plants, but revenues in the transport / warehousing business decreased
due to letting go of unprofitable customers, and revenue in the overall general cargo business slightly decreased aswell. Segment profit increased in the port cargo handling business due to higher revenue. However, as a result of
accounting for the losses from the fire that occurred at our Kawasaki Complex Logistics Center on January 11, 2024,
overall profit in the general cargo business decreased.
As a result, the sales revenue of the general cargo business was 6,398 million yen (99.5% compared to the samequarter from the previous year), and the segment profit was 790 million yen (66.6% compared to the same quarter
from the previous year).
<Overseas Related Business>
In the used vehicle export business, during the first half of the year, the limited availability of car carriers due tothe strong demand for new vehicle exports from Japan, driven by the weak yen, forced us to restrict the number ofused vehicle exports to Malaysia. However, in the second half of the year, we were able to secure sufficient shipslots, leading to increased revenue. Additionally, the vehicle transportation business in China saw an increase inrevenue due to the acquisition of new customers. On the other hand, the CKD business experienced a decrease inrevenue in the second half of the year due to a reduction in the number of packed units.
Regarding segment profit, the used vehicle export business and the vehicle transportation business in China saw
an increase in profit due to the higher revenue. However, the CKD business conducted an impairment test due to ourcustomer’s shift in

ASEAN strategy . As a result, we recognized an impairment loss of the right-of-use assets at

the Ashikaga Parts Logistics Center (warehouse), leading to an overall decrease in profit for the overseas-related
business.
As a result, the sales revenue in the overseas related businesses was 48,938 million yen (102.7% compared to thesame period from the previous year), and the segment profit was 76 million yen (15.6% compared to the same quarter
from the previous year).
Furthermore, the company expenses not including the above mentioned 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 totalled 2,450 million yen.
(2) Summary of financial position of the current fiscal period
Status of assets, liabilities, and equity(Assets)
Current assets increased by 6,961 million yen (26.7%) compared to the end of the previous consolidated fiscal―4―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

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year to 32,994 million yen.
This was mainly due to an increase of 5,841 million yen in cash and deposits.
Non-current assets increased by 7,212 million yen (23.6%) compared to the end of the previous consolidated fiscal
year to 37,739 million yen.
This was mainly due to an increase of 4,102 million yen in tangible fixed assets and an increase of 1,950 million
yen in intangible fixed assets.
As a result, total assets increased by 14,174 million yen (25.1%) compared to the previous consolidated fiscal year
to 70,733 million yen.
(Liabilities)
Current liabilities increased by 5,944 million yen (32.7%) compared to the end of the previous consolidated fiscal
year to 24,145 million yen.
This was mainly due to an increase of 3,500 million yen in bonds and borrowings, and an increase of 815 million
yen in trade and other payables.
Non-current liabilities increased by 4,192 million yen (92.7%) compared to the end of the previous consolidated
fiscal year to 8,714 million yen.
This was mainly due to an increase of 3,712 million yen in lease liabilities.
As a result, total liabilities increased by 10,137 million yen (44.6%) compared to the end of the previous
consolidated fiscal year to 32,860 million yen.
(Equity)
Equity increased by 4,037 million yen (11.9%) compared to the end of the previous consolidated fiscal year to37,873 million yen.
This is mainly because profit margin increased by 3,679 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 5,841 million yen compared to the end of the previous consolidated accounting fiscal year to 11,316
million yen. Each cash flow status category during current consolidated fiscal year and their causes are as follows.
(Cash flow from operating activities)
Funds obtained from operating activities were 11,233 million yen (there were income of 8,778 million yen during
the previous consolidated fiscal year).
The main cause of the increase in funds were net income of 4,204 million yen, and 5,135 million yen for
depreciation and amortization expenses which are non-operating expenses; the main cause of the decrease in funds
were an increase in trade receivables of 1,951 million yen, and 2,095 million yen for payment of corporate income
tax.
(Cash flow from investment activities)
Net cash used in investment activities was 4,663 million yen (expenditures of 2,167 million yen during theprevious consolidated cumulative period). The main itemization breakdown for expenditures were 2,247 million yen
for acquisition of tangible fixed assets and investment property, and 1,655 million yen for the acquisition of sharesof subsidiaries resulting in changes in the scope of consolidation.
(Cash flow from financing activities)
Funds used due to financing activities were 824 million yen (expenditure of 6,290 million yen in the previous
consolidated fiscal year). The main itemization breakdown for expenditures were 2,981 million yen lease liabilities
payments and 847 million yen for dividends, while the main itemization breakdown for income was 3,400 million
yen net increase for short-term borrowings.

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Updated: 2024/07/29 19:28:50(4) Future outlook
In the next consolidated fiscal year, we anticipate that revenue from used vehicle exports to Malaysia will stabilize,
considering exchange rate trends and local demand. For operating income, it is expected to increase due to thepromotion of efficiency improvement in the vehicle transportation business as well as the full-year contribution of
the rate revision effect..
The performance forecast June 2025 period is estimated to be 135,000 million
millionyen of operating profits, 8,100 million

yen of sales earnings, 8,100

yen of profit before tax deduction and 5,500 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 ChongInternational Limited Group, which is the parent company and at achieving improving international comparison offinancial information in the capital market. International financial standards (IFRS) is applied from consolidated
financial statement in securities report of June 2016 (period no. 70).

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3. Consolidated financial statements and major notes(1) Consolidated statement of financial position(Units: Million yen)
End of the previous
End of the current
consolidated accounting year consolidated accounting year
(June 30, 2023)(June 30, 2024)
AssetsCurrent assets
Cash and cash equivalents

5,475

11,316

Trade and other receivables

14,843

17,326Inventories

4,730

2,979

Other financial assets

469

877

Other current assets

514

494

26,032

32,994

Tangible fixed assets

20,743

24,845

Goodwill and intangible assets

3,378

5,328

Investment properties

3,020

2,949

533

516

Other financial assets

1,939

2,106

Other non-current assets

433

1,426

Deferred tax assets

478

565

Total non-current assets

30,52637,739Total assets

56,55870,733

Total current assets
Non-current assets

Investment accounting processed with equity
method―7―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(Units: Million yen)
End of the previous
End of the current
consolidated accounting year consolidated accounting year
(June 30, 2023)(June 30, 2024)
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

9,077

9,892

Bonds and borrowings

1,600

5,100

Lease liabilities

3,132

2,872

Income taxes payable, etc.

1,283

1,867

Other financial liabilities―

2

Other current liabilities

3,106

4,410

18,20024,145

2,563

6,276

Other financial liabilities

89

93

Retirement benefits liabilities

655

1,008

Other non-current liabilities

313

356

Deferred tax liabilities

899

979

Total non-current liabilities

4,522

8,714

Total liabilities

22,72232,860Capital

3,390

3,390

Capital surplus

3,461

3,484

Treasury stock

△638

△614

644

841

26,42630,10633,28537,209550

663

Total Equity

33,83637,873

Total liabilities and equity

56,55870,733

Total current liabilities
Non-current liabilities
Lease liabilities

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

theequityNon-controlling interest―8―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(2) Consolidated statement of profit or loss
Previous consolidated fiscal
year(July 1, 2022 to June 30,2023)(Units: Million yen)
Current Consolidated fiscal
year(July 1, 2023 to June 30,
2024)

132,861

140,751

Cost of sales△117,661△123,083

Gross profit

15,20017,668△10,331△11,297

Other income

260

414

Other expenses

△54

△562

5,074

6,222

52

65

Financial expenses

△44

△46

Investment gain / loss through equity method

△2

△13

5,080

6,227

△1,626△2,023

3,453

4,204

3,437

4,150

15

53

3,453

4,204

203.96245.61

Sales

Selling, general and administrative expenses

Operating profit
Financial profit

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
Basic earnings per share (yen)―9―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(3) Consolidated statements of comprehensive income
Previous consolidated fiscal
year(July 1, 2022 to June 30,2023)(Units: Million yen)
Current Consolidated fiscal
year(July 1, 2023 to June 30,
2024)

3,453

4,204

Remeasurement of defined benefit system

172

413

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

184

10

Total of the items not transferring over to profit
or loss356

424

Conversion difference of business activities
overseas△32

169

Other comprehensive income equity of affiliatedcompany accounted for by the equity method

37

39

Total of the items which may be transferred overto profit or loss

5

208

361

632

3,815

4,837

3,811

4,724

4

112

3,815

4,837

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

Items which may be transferred over to profit orloss

Other comprehensive income after tax deduction
Comprehensive income for the year
Attribution of the comprehensive income for the year:
Equity shareholders of the company
Non-controlling interest
Comprehensive income for the year―10―

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Updated: 2024/07/29 19:28:50(4) Consolidated statement of changes in equity
Previous consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2022

CapitalCapitalsurplus

3,390

3,458

△667

155

288

－

Profit of the year
Other comprehensive
incomeComprehensive income
for the year

－

－

－

2

Total
Equity444

23,44030,067546

30,614

－

3,437

3,437

15

3,453

373

△11

361

4

3,815

16

184

172

373

16

184

172

373

3,437

3,811

－

△625

△625

△625

31

31
－

Dividends of the surplus
Share-based paymenttransactions, etc.

Total
equityFinancial
Nonattributing
assetscontrolling
Conversion
Remeasurem
Treasury
Retained to themeasured byinterestofent ofTotal otherstock difference
fair value
earnings equity
businessdefined components
throughshareholde
activities
benefitof fundsother
rs of theoverseas
systemcomprehensi
company
ve profits

28－

Transfer from othercapital component to
Retained earnings

△0

△172

△173

173

－

Total transactions, etc. withthe owners

－

2

28

－

△0

△172

△173

△451

△593

－

△593

Balance on June 30, 2023

3,390

3,461

△638

172

472

－

644

26,42633,285550

33,836

Current consolidated accounting period (July 1, 2023 to June 30, 2024)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

CapitalCapitalsurplusactivities
overseas

Balance on July 1, 2023

3,390

3,461

Total equity
Nonattributing to controlling

FinancialassetsTreasury Conversion measured by Remeasurem
Retained the equity
interestofent ofTotal otherstock difference
fair value
earnings shareholders
businessdefined components

△638

172

throughothercomprehensive profits

472

Comprehensive income
for the year

－

－

－

of funds－

644

26,42633,285550

33,836

－

4,150

4,150

53

4,204

573

59

632

112

4,837

149

10

413

573

149

10

413

573

4,150

4,724

－

△847

△847

△847

47

47
－

Dividends of the surplus
Share-based paymenttransactions, etc.

23

24

Transfer from othercapital component to
Retained earningsof thecompany

benefitsystemProfit of the year
Other comprehensive
incomeTotal
Equity

－
△1

39

△413

△376

376

－

Total transactions, etc. withthe owners

－

23

24

△1

39

△413

△376

△471

△799

－

△799

Balance on June 30, 2024

3,390

3,484

△614

320

521

－

841

30,106

37,209663

37,873―11―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(5) Consolidated statement of cash flow
(Units: Million yen)Previous consolidated fiscal
year(July 1, 2022 to June 30,
2023)

Current Consolidated fiscal
year(July 1, 2023 to June 30,
2024)

Profit of the year

3,453

4,204

Depreciation and amortization costs

5,005

5,135

－

746

△52

△56

Interest expense

41

43

Investment gain / loss through equity method213Corporate income tax expenses

1,626

2,023

Increase / decrease of trade receivables (△ is anincrease)

1,113△1,951

Increase / decrease of inventories (△ is an increase)△2,127

1,754

165

64

Increase / decrease in net defined benefit asset andliability

36

△61

Other

934

1,399

Subtotal

10,20013,315

52

56

△41

△43

△1,432△2,095

8,778

11,233

Payment for acquisition of tangible fixed assets andinvestment properties△1,912△2,247

Proceed from sales of tangible fixed assets andinvestment properties

18

63

△280

△539

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

Other

7

△284

△2,167△4,663

Cash flow from operating activities

Impairment loss
Interest income and dividend

Increase / decrease(△ is a decrease)

of

trade

payablesInterest and dividend received
Interest paid
Corporate income tax paid
Cash flow from operating activities
Cashflow from investment activities

Payment for intangible assets

Cashflow from investment activities―12―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50

Previous consolidated fiscal
year(July 1, 2022 to June 30,2023)(Units: Million yen)
Current Consolidated fiscal
year(July 1, 2023 to June 30,
2024)△2,526

3,400

－

△100

△22

△295

△3,116△2,981△625△847△6,290△824

Effect of exchange rate changes on cash and cash
equivalents

△26

95

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

294

5,841

Cash and cash equivalents at the beginning of the year

5,180

5,475

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

5,475

11,316

Cash flow from financing activities
Net increase or decrease of short-term loans (△ isa decrease)
Redemption of Bonds
Repayment of long-term loans
Repayment of lease debts
Dividend paid
Cash flow from financing activities―13―File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(6) Notes on consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Changes in Presentation)
Consolidated statement of cash flows
In the previous consolidated fiscal year, the "increase/decrease in retirement benefit assets" included in "other" under"cash flow from operating activities" has been combined with the previously included "increase/decrease in retirement
benefit liabilities" to enhance clarity. Starting from the first quarter of the consolidated cumulative period, it ispresented as "increase/decrease in retirement benefit assets and liabilities". To reflect this change in presentation, theconsolidated financial statements for the previous consolidated fiscal year have been rearranged.
As a result, the 60 million yen previously displayed under "other" in the "cash flow from operating activities" sectionof the consolidated cash flow statement for the previous consolidated fiscal year has been reclassified as"increase/decrease in retirement benefit assets and liabilities" under "cash flow from operating activities".

(Segment information)(1) Summary of report segment
In the report segment of our group based on business segments, financial information isolated from the structuralunit of our group can be procured and the highest decision-making body conducts regular study for deciding divisionof management resources and evaluating performance.
This group collects the business segments based on the state of management organization and characteristics ofthe service and creates report segment as “domestic automotive-related business”, “human resources business” and“general cargo business”.
Main services belonging to each report segment
Segment

Main service

Domestic automotive related
businesses

Domestic transportation of automobiles and motorcycles, maintenance, in-plant
logistics and incidental work.

Human resource businesses

Temporary staffing of drivers, personal car driving management

General cargo businesses

Transportation and storage of general consumer goods, cargo handling of fueland slag for biomass power generation, warehouse rental cargo handling, etc.

Overseas Related Business

Overseas transportation of automobiles, export of used vehicles, 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 sale earnings between the segments are based on market pricing.

―14―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50

Previous consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)
Total amount
Adjustment
on theamount consolidated(note) 1
financialstatements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

Overseas
RelatedBusiness

58,16920,621

6,429

47,641

132,861－

132,861

129

1,442

114

－

1,685

△1,685－58,29822,064

6,543

47,641

134,547△1,685

132,861

Segment profit (operating
profit)

5,062

750

1,187

492

7,492

△2,417

5,074

Segment assets

25,734

8,436

9,700

12,461

56,333225

56,558

Increased amount in noncurrent assets(Note) 2

1,983

56

1,783

958

4,781

29

4,810

Depreciation andamortization costs(Note) 2

3,172

320

1,077

302

4,872

132

5,005

Sales from external customers
Sales between segments
Total

Total

Other items(Note) 1. The adjusted amount is as follows.
① The △2,417 million yen adjustment amount in the segment profits includes the total company cost △2,417 million
yen. The total company cost is an expense related to the management divisions of our company not belonging to thereporting segment.
② 225 million yen adjusted amount of segment assets includes total company assets of 14,309 million yen not allotted
into any of report segment and △ 14,084 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 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 also included.

Current consolidated accounting period (July 1, 2023 to June 30, 2024)(Units: Million yen)
Total amount
Adjustment
on theamount consolidated(note) 1
financialstatements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

Overseas
RelatedBusiness

63,775

21,638

6,398

48,938140,751－

140,751

139

1,777

113

－

2,030

△2,030－63,91523,416

6,511

48,938142,781△2,030140,751

Segment profit (operating
profit)

6,994

810

790

76

8,672

△2,4506,222

Segment assets

33,757

9,759

10,573

12,512

66,6034,130

70,733

Increased amount in noncurrent assets(Note) 2

10,412

720

1,414

111

12,659269

12,928Depreciation andamortization costs(Note) 2

3,288

308

1,061

377

5,036

99

5,135

Impairment loss
(Note) 2

－

－

－

746

746

－

746

Sales from external customers
Sales between segments
Total

Total

Other items―15―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(Note) 1. The adjusted amount is as follows.
① The △2,450 million yen adjustment amount in the segment profits includes the total company cost △2,450 million
yen. The total company cost is an expense related to the management divisions of our company not belonging to thereporting segment.
② 4,130 million yen adjusted amount of segment assets includes total company assets of 13,036 million yen not allotted
into any of report segment and △ 8,906 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/amortization costs and impairment loss 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 also included.

(3) Regional information① The breakdown of sales revenue from external customers by region are as follows.
Previous consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)Japan

Malaysia (note)
86,225

Other

42,896

Total
3,740

132,861

Current consolidated accounting period (July 1, 2023 to June 30, 2024)(Units: Million yen)Japan

Malaysia (note)
92,817

Other

43,770

Total
4,163

140,751② Non-current assets
Since the amount of non-current assets in Japan accounts for the majority of the amount of non-current assets inthe consolidated statement of financial position, the statements are omitted.
(4) Information on major customers
Previous consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)
Name or title of customer

Sales

Related segment

Domestic automotive related
businesses
Overseas Related Business(Note) The sales performance of the Nissan Motors Group includes the sales performance to Nissan Motors Co., Ltd.,
Nissan Motorsports & Customizing Co., Ltd., and domestic Nissan Motors sales companies, as well as the sales
performance to Dongfeng Motor Co., Ltd. and other Nissan-related companies in China through Zero Scm
Logistics (Beijing) Co., Ltd.
Nissan Motors Group (Note)

19,769Current consolidated accounting period (July 1, 2023 to June 30, 2024)(Units: Million yen)
Name or title of customer
Sales
Related segment
Domestic automotive related
Nissan Motors Group (Note)
20,292businesses
Overseas Related Business(Note) The sales performance of the Nissan Motors Group includes the sales performance to Nissan Motors Co., Ltd.,
Nissan Motorsports & Customizing Co., Ltd., and domestic Nissan Motors sales companies, as well as the sales
performance to Dongfeng Motor Co., Ltd. and other Nissan-related companies in China through Zero Scm
Logistics (Beijing) Co., Ltd.

―16―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(Information per share)
The calculation for basic earnings per sharefor the previous consolidated fiscal year and the current consolidated

fiscal year is as follows.

Previous consolidated fiscal
year(July 1, 2022 to June 30,
2023)

Current Consolidated fiscal
year(July 1, 2023 to June 30,
2024)

Profit for the year attributable to equity
shareholders of the company (million Yen)

3,437

4,150

Weighted average number of shares (thousand
shares)16,856

16,898

Basic earnings per share (yen)203.96245.61―17―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(Business Combination)
Business combination and other relationships are as follows:
Previous consolidated accounting period (July 1, 2022 to June 30, 2023)
Regarding the business combination with IKEDA Co., Ltd. (now Zero Plus IKEDA Co., Ltd.) conducted on May 31,
2022, the allocation of the acquisition cost had not been completed in the previous consolidated fiscal year, so
provisional accounting treatment was applied. However, the allocation of the acquisition cost was completed during theprevious third-quarter consolidated accounting period.
Current consolidated accounting period (July 1, 2023 to June 30, 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.
Business Operations: Vehicle transportation, Auto Auction Site Operations, etc.
(2) Acquisition date:November 1, 2023
(3) Percentage of voting equity interest acquired:
100%(4) Reasons for the business combination
With the aim of becoming a comprehensive logistics company and service provider in the automobile distribution
industry, our Group has been expanding its automobile-related businesses and human resource business in addition
to our original vehicle transportation business, and now we welcome So-ing Co., Ltd., which operates vehicletransportation business and auto auction site operation business, to our group. In the vehicle transportation business,with the 2024 problem just around the corner, it is imperative to maintain and secure transportation capacity by
reducing the total working hours of crew members and improving transportation efficiency. Taking this acquisitionof shares as an opportunity, we will realize improvement in transportation efficiency through the flexible use ofcargoes. In the auto auction business, by combining the operational know-how of So-ing Co., Ltd. with theinfrastructure and resources of our Group, we will expand the market share of this business and uncover new needsin 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
Regarding the business combination with SO-ING Co., Ltd. conducted on November 1, 2023, the allocation of theacquisition cost had not been completed during the second-quarter consolidated accounting period, so provisional
accounting treatment was applied. However, the allocation of the acquisition cost was completed during the thirdquarter consolidated accounting period.
In line with the finalization of this provisional accounting treatment, the amounts of assets and liabilities as of theacquisition date have been revised. The main revisions are an increase of 1,060 million yen in intangible assets, anincrease of 360 million yen in non-current liabilities, and a decrease of 699 million yen in goodwill.

―18―

File Name: 第 78 期 通期決算短信_EN (for Zero comment) 240805【修正】.docx

Updated: 2024/07/29 19:28:50(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

2,265

Goodwill
590(Note) Intangible assets of 1,060 million yen identified in the business combination are measured based onassumptions such as estimated future cash flows, discount rates, and the rate of decrease in sales from existingcustomers, and consist primarily of customer-related assets of 1,060 million yen. The estimated useful life of thecustomer-related assets is 13 years.
Goodwill mainly consists of synergies with existing businesses and excess earning power expected to arise from theacquisition 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, generaland administrative expenses" inconsolidated profit and loss statement.

(4) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition△2,856

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

1,200

Expenditures from acquisition of investments in subsidiaries resulting in change inscope of consolidation△1,655(5) Impact of the business combination on the Group's performance
Assuming that the business combination was implemented at the beginning of the current consolidated accounting
year, profit and loss information after the acquisition date of the business combination and the impact on the Group'sbusiness performance for the current consolidated fiscal year are immaterial and are not disclosed.

(Significant subsequent events)
There are no applicable matters.

―19―