Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 [Based on IFRS]
August 10, 2022
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, 2022 Scheduled date to commence dividend payments: September 29, 2022
Scheduled Date for the Submission of Annual Securities Report: September 29, 2022
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, 2022 (From July 1, 2021 to June 30, 2022)(1) Consolidated operating results (cumulative)
Sales revenue

FY2021/2022
FY2020/2021(Percentages indicate year-on-year changes)

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

107,045
92,171

16.1
3.0

3,912
5,332

△26.6

3,947
5,373

Basic earnings of thisyear per share

45.1

Diluted earnings of this year
per share

FY2021/2022

150.91150.72

FY2020/2021

216.55215.85% Millions of yen

2,521
3,614

△ 26.6

46.0

2,535
3,626

△30.2

51.4

% Millions of yen

%

2,718
3,949

△31.2

52.7

%

FY2021/2022: 3 million yen,

Total comprehensive
income of the fiscal
year

△30.1

Total capital profit ratio
before tax

equity shareholders of thecompany

Yen(Reference) Investment gain / loss through equity method;% Millions of yen

Profit ratio attributable toYen

Profit attributable toequity shareholdersof the company

Net Income

66.2

Sales revenue operating
profit ratio
%

%

8.7

7.5

3.7

13.6

11.3

5.8

FY2020/2021: 42 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

FY2021/2022

54,89530,61430,06754.8

1,789.25

FY2020/2021

50,93528,29828,28055.5

1,688.83(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen
FY2021/2022
3,954
FY2020/2021
8,594

Cash flow from investing
activities
Million yen△3,266△3,104

Cash flow from financing
activities
Million yen△1,608△4,364

Cash and cash equivalents at endof yearMillion yen
5,180
5,904

2. Cash dividends
Annual dividends per share
1st quarterend

2nd quarterend

Yen

3rd quarterend

Yen

Fiscal yearend

Yen

Total dividends(Total)

Total

Dividend
payout ratio(consolidated)

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

Yen

Yen

Million yen%%

FY2020/2021
FY2021/2022

-----

15.00
15.00

-----

39.10
22.70

54.10
37.70

911
635

25.0
25.0

3.4
2.1

FY2022/2023(forecast)

---

15.00

---

25.20

40.20

25.0

3. Forecast of consolidated financial results for the year ending June 30, 2023 (From July 1, 2022 to June 30, 2023)

Sales revenue
Full year

Millions of yen
109,000

Operating income%
1.8

Millions of yen
4,200(Percentages indicate year-on-year changes)
Profit attributable to equity
shareholders of the
Basic earnings per sharecompany

Profit before tax%
7.3

Millions of yen
4,200

%
6.4

Millions of yen
2,700

%
6.5

Yen
160.67

(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)

FY2021/2022

17,560,242 shares

FY2020/2021

17,560,242 shares

FY2021/2022
FY2021/2022

994,982 shares
16,804,791 shares

FY2020/2021
FY2020/2021

1,018,911 shares
16,745,846 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2022 (From July 1, 2021 to June 30, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2021/2022
FY2020/2021

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

53,14356,226

△5.5

2,169
2,557

△15.1

2,190
3,780

1.3

Basic earnings per share

67.9

Net Income% Millions of yen

%

1,385
2,626

△47.2

△42.1

149.8

197.8

Diluted earnings per share

FY2021/2022

Yen
83.71

Yen
-

FY2020/2021

158.81-(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY2021/2022
37,967
23,628FY2020/2021
35,807
23,121(Reference) Company’s Equity
FY2021/2022: 23,628 million yen

Equity ratio

Net assets per share
%
yen
62.2
1,426.41
64.6
1,397.80
FY2020/2021: 23,121 million yen

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) Summary of financial position of the current fiscal period ……………………………………………………………

24(3) Summary of cash flows of the current fiscal period ……………………………………………………………………
(4) Future outlook ……………………………………………………………………………………………………………

4
5

2. Basic view on selection of accounting standards ……………………………………………………………………………
3. Consolidated financial statements and major notes …………………………………………………………………………

5
6(1) Consolidated statement of financial position ……………………………………………………………………………
(2) Consolidated statement of profit or loss …………………………………………………………………………………

68(3) Consolidated statement of profit or loss and other comprehensive income ……………………………………………
(4) Consolidated statement of changes in equity ……………………………………………………………………………

910(5) Consolidated statement of cash flow ……………………………………………………………………………………
(6) Notes on consolidated financial statements ……………………………………………………………………………

11
12(Notes on going concern assumption) ………………………………………………………………………………
(Segment information) ………………………………………………………………………………………………

12
12(Information per share) ………………………………………………………………………………………………
(Business Combination) ……………………………………………………………………………………………

15
15(Significant subsequent events) ……………………………………………………………………………………

18

-1-

1. Summary of operating results(1) Summary of operating results of the current fiscal period
Japan’s economy during the consolidated fiscal year has shown signs of recovery in many areas, the recovery in the automobile
sector and other sectors has slowed down due to the impact of the new waves of the COVID-19 pandemic and partial production
cutbacks in semiconductors and other products due to supply constraints.
In the domestic automotive market, the total number of new vehicles sales decreased significantly to 83.8% (statistical data of
the Japan Automobile Manufacturers Association) as compared to the consolidated cumulative period of the same quarter fromthe previous year (hereinafter referred to as the same quarter from the previous year). The shortage of semiconductors and thenew pandemic wave of COVID-19 in Southeast Asia and China have had a significant impact on the reduction of production due
to shortages in the supply of automobile parts. The number of used vehicle registrations also decreased to 92.2% compared to thesame period of the previous year, due to the decrease in trade-in cars caused by the slump in new vehicle sales, and a decline in
the number of used vehicles purchased as a result of the rise in the market for used vehicles.
Revenue increased in the overseas related business due to the consolidation of Zero Scm Logistics (Beijing) Co., Ltd. as aconsolidated subsidiary on July 1, 2021, as well as the strong performance of the used vehicle export business to Malaysia, but
operating income decreased due to a decline in the number of units for transportation contracts as a result of the slump in
automobile distribution, the soaring of unit price of fuel, and a decrease in employment adjustment subsidies compared to theprevious consolidated fiscal year.
As a result, the business results of our group are as follows: sales revenue of 107,045 million yen (116.1% compared to thesame quarter from the previous year) and operating profit of 3,912 million yen (73.4% compared to the same quarter from theprevious year). In addition, the profit before taxes was 3,947 million yen (73.4% compared to the same quarter from the previousyear), and the profit of the quarter attributable to the equity shareholders of the company was 2,535 million yen (69.9% comparedto the same quarter from the previous year).
(Number of units related to domestic distribution of automobiles)
Domestic

July of 2020 to June of 2021

Units: vehicles
July 2021 to June 2022

Compared to theprevious year

Number of new vehicles
sold
Domestic manufacturer*1

4,577,218

3,830,263

83.7%(out of this, Nissan
Motor)*1(483,552)(428,312)(88.6%)

Foreign manufacturer*2278,207239,66986.1%

4,855,425

4,069,932

83.8%

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

3,909,258

3,591,917

91.9%

Light vehicles*4

3,094,802

2,863,195

92.5%

7,004,060

6,455,112

92.2%

207,818

180,972

87.1%

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

ExportNew vehicles of domestic
manufacturers
Used vehicles(registeredvehicles)July of 2020 to June of 2021

July 2021 to June 2022

Compared to theprevious year*14,140,514

3,529,909

85.3%

*5

1,177,126

1,276,107108.4%*1 Calculated from Japan Automobile Industry Association Statistics*2 Calculated from Japan Automobile Importers’ Association statistics*3 Calculated
from Japan Automobile Dealers Association statistics*4 Calculated from Japan Mini Vehicles Association statistics*5 Trial calculated from the number of export deleted registered vehicles in the Japan
Automobile Dealers Association statistics-2-

[Fuel retail price]

Unit: Yen / L

National average

July of 2020 to June of 2021

July 2021 to June 2022

Compared to theprevious year

Light oil

*6

121.0

146.7

121.2%

Regular petrol

*6

140.6

166.9

118.7%*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.
From the first quarter of the consolidated accounting period, the Company acquired an additional equity interest in Zero Scm
Logistics (Beijing) Co., Ltd., which had been a jointly controlled company accounted for by the equity method, and made it aconsolidated subsidiary, and as a result, the "Overseas Related Business" reporting segment was added. In addition, the automobile
related businesses has been changed to the domestic automotive related businesses.
For the following comparisons with the previous consolidated fiscal year, figures for the previous consolidated fiscal year havebeen reclassified to reflect the new segment classifications.
“Domestic automotive related businesses”
For vehicle transportation, which is the core business, the number of units for transportation contracts decreased due to thedecline in new vehicles sales and used vehicle registrations caused by the shortage of semiconductors, which led to a decrease inrevenue. Revenue in the maintenance business also decreased due to a decrease in the number of pre-delivery maintenance andinspection contracts accompanying the decline in new vehicle sales, and there was an overall decrease in revenue in the domestic
automobile related businesses.
Segment profit decreased due to lower revenue in the vehicle transportation and maintenance businesses, as well as higher unit
fuel costs and fuel surcharges for marine transportation as a result of soaring crude oil prices and the depreciation of the yen.
As a result, the overall sales revenue in the domestic automotive business was 51,482 million yen (93.6% compared to thesame period from the previous year), and the segment profit was 4,202 million yen (72.5% compared to the same quarter fromthe previous year).
In the vehicle transportation business, we will continue to respond to the "Digitalization", "Greening", and "New Normal. In
the area of Digitalization, we have set up the Transportation Digitalization Promotion Office and are promoting the constructionof a system to realize systematic allocation of vehicles.
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. Also, with the rapid acceleration of the adoption of EVs, we will take the initiative in developing theinfrastructure for logistics bases and building EV-related peripheral businesses.
In response to the New Normal, we are striving to reduce overtime work in order to respond to the so-called "2024 Supply
Chain Crisis", in which the application of the Work Style Reform Law to automobile driving duties is expected to take effect in
2024, we are also implementing various measures to maintain our transportation capacity, such as hiring new crew members,
efficient operation of transportation equipment, and promotion of the division of labor in cargo handling.
<Human resource businesses>
Regarding the pick-up service business, revenues continued to increase due to the recovery from the impact of COVID-19
pandemic, and revenues from the human resources business as well as airport related personnel business increased as thebusinesses recovered from the previous year, when they were affected by the termination of employment contracts due to the
COVID-19 pandemic. Segment income decreased due to a lower employment adjustment subsidy compared to the previous
consolidated fiscal year.
As a result, the sales revenue of the overall human resource business was 19,330 million yen (107.7% compared to the samequarter from the previous year), and the segment profit was 666 million yen (80.0% compared to the same quarter from theprevious year).
<General cargo businesses>
In the port cargo handling business, the full-scale launch of fuel cargo handling for biomass power plants has led to an increase
in revenue in the transport / warehousing business due to the acquisition of new customers, increasing the revenue in the overall
general cargo business as well.

-3-

Segment profits in the port cargo handling business increased as a result of the full scale operation of biomass power generationfuel cargo handling, while in the transport / warehousing business, segment profits increased as a result of the successfulacquisition of new customers in addition to the revision of rates and withdrawal from unprofitable businesses, and segment profit
increased in the overall general cargo business as well.
As a result, the sales revenue of the overall general cargo business was 6,423 million yen (111.3% compared to the same quarter
from the previous year), and the segment profit was 1,060 million yen (139.9% compared to the same quarter from the previousyear).
“Overseas Related Business”
In the used vehicle export business, sales increased significantly due to a surge in demand following the lifting of the lockdown
in Malaysia, our main export destination, and the continuation of sales tax exemptions for automobiles, along with increased
customer satisfaction, which led to an increase in our market share. Revenue in the CKD business increased as a result of theresumption of operations at the automobile manufacturing plant in Thailand, one of our customers. In the vehicle transportation
business in China, Zero Scm Logistics (Beijing) Co., Ltd., which was an equity method affiliate in the previous consolidated
fiscal year, became a subsidiary, resulting in a net increase in sales revenue from this company.
Regarding segment profits, the vehicle transportation business in China posted a loss due to the strong impact of thesemiconductor shortage and the lockdown in Shanghai, but the used vehicle export business and CKD business posted higher
profits due to increased sales, resulting in an increase in profits in the overall overseas business.
As a result, the overall sales revenue in the overseas related businesses was 29,809 million yen (221.4% compared to the same
period from the previous year), and the segment profit was 184 million yen (2644.4% compared to the same quarter fromthe previous year).
Furthermore, the company expenses not included in the abovementioned report segment (expenses affiliated with ourcompany's management division), etc. are allocated as an item in the "adjustment amount" as indicated in "3. consolidated
financial statements and major notes (6) Notes regarding consolidated financial statements (Segment Infomation)", and totalled
2,200 million yen.
(2) Summary of financial position of the current fiscal period
Status of assets, liabilities, and equity(Assets)
Current assets increased by 4,544 million yen (22.7%) compared to the end of the previous consolidated fiscal year to 24,605
million yen.
This was mainly due to an increase in operating receivables and other receivables of 2,962 million yen and an increase ininventories of 1,676 million yen
Non-current assets decreased by 584 million yen (1.9%) compared to the end of the previous consolidated fiscal year to 30,290
million yen.
This was mainly due to a decrease of 696 million yen in property, plant and equipment and a decrease of 291 million yen in
investments accounted for by the equity method, despite an increase of 660 million yen in goodwill and intangible assets.
As a result, total assets increased by 3,960 million yen (7.8%) compared to the previous consolidated fiscal year to 54,895
million yen.
(Liabilities)
Current liabilities increased by 3,812 million yen (25.7%) compared to the end of the previous consolidated fiscal year to
18,631 million yen.
This was mainly due to an increase of 2,431 million yen in short-term borrowings and an increase of 2,150 million yen in
trade and other payables.
Non-current liabilities decreased by 2,168 million yen (27.7%) compared to the end of the previous consolidated fiscal year
to 5,649 million yen.
This was mainly due to a decrease of 2,113 million yen in liabilities for right to use and a decrease of 63 million yen in
liabilities for retirement benefits.
As a result, total liabilities increased by 1,644 million yen (7.3%) compared to the end of the previous consolidated fiscal year
to 24,281 million yen.
(Equity)
Equity increased by 2,315 million yen (8.2%) compared to the end of the previous consolidated fiscal year to 30,614 million
yen.
This is mainly because profit margin increased by 1,631 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 fiscal year decreased by 723
million yen compared to the end of the previous consolidated fiscal year to 5,180 million yen.

-4-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 3,954 million yen (there were income of 8,594 million yen during the previous
consolidated fiscal year).
The main cause of the increase in funds were 2,521 million yen for profit from this period and 4,682 million yen for
depreciation and amortization expenses which are non-fund expenses; the main cause of the decrease in funds was an increaseof 1,818 million yen in trade receivables.
(Cash flow from investment activities)
Net cash used in investment activities was 3,266 million yen (expenditures of 3,104 million yen during the previous
consolidated fiscal year).
The main itemization breakdown for expenditures was 2,595 million yen for acquisition of tangible fixed assets andinvestment property.
(Cash flow from financing activities)
Funds used due to financing activities were 1,608 million yen (expenditure of 4,364 million yen in the previous consolidated
fiscal year).
The main itemization breakdown for expenditures were 3,031 million yen lease liabilities payments and 2,351 million yen
increase in short-term borrowings.

(4) Future outlook
In the next consolidated financial year, the shortage of semiconductors is expected to be resolved and automobile production
will gradually recover. However, uncertainties caused by the re-expansion of the number of people infected with the COVID19 have been included in the forecast.
In addition, the implementation of a fuel surcharge system in the vehicle transport business is expected that fluctuations infuel prices will have almost no impact on operating profit.
The performance forecast of June 2022 period is estimated to be 109,000 million yen of sale earnings, 4,200 million yen ofoperating profits, 4,200 million yen of profit before tax deduction and 2,700 million yen of current period profit owing to ownersof new company.
 The above forecast is judged by the company to be rational based on information procurable as of now and the actual results
may differ from the forecast.

2. Basic view on selection of accounting standards
This company group aims at achieving improvement in efficiency and quality of management through integration of financial report
basics considering the progress of overseas business expansion and the policy of Tan Chong International Limited Group, which isthe parent company and at achieving improving international comparison of financial information in 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
End of the previous consolidated
accounting year
(June 30, 2021)(Units: Million yen)
End of the current consolidated
accounting year
(June 30, 2022)

Cash and cash equivalents

5,904

5,180

Trade and other receivables

12,914

15,877927

2,603

Other financial assets

7

471

Other current assets

306

471

20,06024,605

Tangible fixed assets

21,89521,199Goodwill and intangible assets

2,320

2,981

Investment properties

3,262

3,145

788

497

Other financial assets

1,686

1,646

Other non-current assets

541

427

Deferred tax assets

379

392

Total non-current assets

30,87530,290Total assets

50,93554,895

AssetsCurrent assets

Inventories

Total current assets
Non-current assets

Investment accounting processed with equity
method-6-

End of the previous consolidated
accounting year
(June 30, 2021)(Units: Million yen)
End of the current consolidated
accounting year
(June 30, 2022)

Trade and other payable

6,283

8,433

Loans

1,572

4,003

Lease liabilities

3,066

2,666

Income taxes payable, etc.

1,161

996

Other current liabilities

2,735

2,530

14,81918,631

22

－

5,964

3,851

Other financial liabilities

80

82

Retirement benefits liabilities

962

899

Other non-current liabilities

308

306

Deferred tax liabilities

478

511

Total non-current liabilities

7,817

5,649

Total liabilities

22,63624,281

Capital

3,390

3,390

Capital surplus

3,437

3,458

Treasury stock

△681

△667

324

444

21,80923,44028,28030,06718546

Total Equity

28,29830,614

Total liabilities and equity

50,93554,895

Liabilities and Equity
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities
Loans
Lease liabilities

EquityOther components of funds
Retained earnings
Total equity attributing to the equity shareholdersof the company
Non-controlling interest-7-(2) Consolidated statement of profit or loss
(Units: Million yen)Previous consolidated fiscal year
(from July 1, 2020 to June 30,
2021)

Current Consolidated fiscal year
(from July 1, 2021 to June 30,
2022)

Sales revenue

92,171

107,045

Cost of sales△78,768△93,918

13,402

13,127△8,749△9,354

Other income

985

258

Other expenses

△306

△119

5,332

3,912

38

70

△38

△39

42

3

5,373

3,947

△1,759△1,425

3,614

2,521

Equity shareholders of the company

3,626

2,535

Non-controlling interest

△11

△14

Profit of the year

3,614

2,521

Basic earnings per share (yen)216.55150.91

Basic earnings per share after dilution (yen)215.85150.72Gross Profit
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:

Earnings per share-8-(3) Consolidated statement of profit or loss and other comprehensive income(Units: Million yen)Previous consolidated fiscal year
(from July 1, 2020 to June 30,
2021)

Current Consolidated fiscal year
(from July 1, 2021 to June 30,
2022)

3,614

2,521

Remeasurement of defined benefit system

80△9Net change amount of fair value of equity
instruments specified by measured by fair value
through other comprehensive income

176

△66

Total of the items not transferring over to profit or
loss

257

△75

Conversion difference of business activities
overseas－245

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

77

27

Total of the items which may be transferred over toprofit or loss

77

272

335

197

3,949

2,718

Equity shareholders of the company

3,961

2,646

Non-controlling interest

△11

71

Comprehensive income for the year

3,949

2,718

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

Items which may be transferred over to profit or loss

Other comprehensive income after tax deduction
Comprehensive income for the year
Attribution of the comprehensive income for the year:-9-(4) Consolidated statement of changes in equity
Previous 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

CapitalBalance on July 1, 2020

3,390

Capitalsurplus

3,394

Treasury
stock

△681

179

△108

－

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

－

－

－

Balance on June 30, 2021

－

3,626

24,86429

24,894

3,626

△11

3,614

80

335

77

176

80

335

3,626

3,961

－

△588

△588

△588

－

△0

△0

－

43

43
－

43

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

18,690Total Equity

176

△0

Share-based paymenttransactions, etc.

70

Noncontrollinginterest

77

Dividends of the surplus
Acquisition of treasury stock

Retained
Earnings

Total equity
attributing to
the equity
shareholdersof thecompany

Financial
Translation
assets
Total
Remeasureme
adjustments measured by
other
nt of
on
fair value
components
definedforeignthrough otherof equity
benefit system
operations comprehensiv
Total
e profits

335

△80

△80

80

－

335

△11

3,949

－

43

△0

－

－

△80

△80

△508

△545

－

△545

3,390

3,437

△681

△31

355

－

324

21,80928,28018

28,298Current consolidated accounting period (July 1, 2021 to June 30, 2022)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

CapitalBalance on July 1, 2021

3,390

Capitalsurplus

3,437

Treasury
stock

△681

355

△31

－

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

－

－

－

Share-based paymenttransactions, etc.

21

21,809－2,535

Total Equity

28,28018

28,298

2,535

△14

2,521

111

86

197

71

2,718

△9

111

186

△66

△9

111

2,535

2,646

－

△895

△895

△895

△0

－

△0

△0

13

－

35

35

－

－

△0

9

Changes in scope of
consolidation

Balance on June 30, 2022

324

Noncontrollinginterest△66

Transfer from other capitalcomponent to Retained
earnings

Total transactions, etc. with theownersTotal equity
attributing to
the equity
shareholdersof thecompany

186

Dividends of the surplus
Acquisition of treasury stock

Retained
Earnings

FinancialassetsTranslation
measured by Remeasureme Total otheradjustments
fair value
nt of defined components
on foreign
through other benefit system of equity Total
operations
comprehensiv
e profits

8

△8

－

－

457

457

－

21

13

－

△0

9

8

△904

△859

457

△402

3,390

3,458

△667

155

288

－

444

23,44030,067546

30,614- 10 -

(5) Consolidated statement of cash flow
Previous consolidated fiscal
year(from July 1, 2020 to June 30,2021)(Units: Million yen)
Current Consolidated fiscal
year(from July 1, 2021 to June 30,
2022)

Profit of the year

3,614

2,521

Depreciation and amortization costs

4,581

4,682

Interest income and dividend

△13

△37

38

38

Investment gain / loss through equity method

△42

△3

Corporate income tax expenses

1,759

1,425

Increase / decrease of trade receivables (△ is an increase)△62△1,881

Increase / decrease of inventories (△ is an increase)△415△1,674

Increase / decrease of trade payables (△ is a decrease)

374

442

△127

△32

Other

354

107

Subtotal

10,061

5,587

13

37

△38

△38

△1,441△1,632

8,594

3,954

△2,968△2,595103

5Payment for intangible assets
Expenditures from acquisition of investments in subsidiaries
resulting in change in scope of consolidation

△89

△95

－

△162

Other

△149

△418

△3,104△3,266

△435

2,351

△53

△32

△3,287△3,031

△588

△895

△0

△0

△4,364△1,608

Effect of exchange rate changes on cash and cash equivalents－

196

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

1,125

△723

Cash and cash equivalents at the beginning of the year

4,779

5,904

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

5,904

5,180

Cash flow from operating activities

Interest expense

Increase / decrease in retirement benefits liabilities (△ is adecrease)

Interest 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 and investment
properties

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 through financing activities- 11 -

(6) Notes on consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Segment information)(1) Summary of report segment
In the report segment of our group based on business segments, financial information isolated from the structural unitof our group can be procured and the highest decision-making body conducts regular study for deciding division ofmanagement resources and evaluating performance.
This group collects the business segments based on the state of management organization and characteristics of theservice and creates report segment as “domestic automotive-related business”, “human resources business” and “generalcargo business”.
Since the current consolidated fiscal year, our group acquired an additional equity interest in Zero Scm Logistics(Beijing) Co., Ltd., which had been an equity-method affiliate and made it a consolidated subsidiary, and has strengthened
its management system to further promote overseas business development. As a result, the "overseas-related business"segment has been added to the reporting segments, and the used vehicle export business, which was previously includedin the "automobile-related businesses" segment, and the CKD business, which was previously included in the "generalcargo business" segment, have been reclassified into the "overseas-related business" segment. In addition, the automobile
related businesses has been changed to the domestic automotive related businesses.
Furthermore, the segment information for the previous consolidated fiscal year is provided based on the new reporting
segment classifications.
Main services belonging to each report segment
Segment
Automobile-related businesses

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

Human resource businesses

Temporary staffing of drivers, personal car driving management

General cargo businesses

Transportation and storage of general consumer goods, cargo handling of fuel and slag forbiomass 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.

- 12 -

Previous consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)Domestic
automotive
relatedbusinesses

Consolidated
financial
Human
resourcesbusinesses

General cargobusinesses

Overseasrelated

Total

businesses

Adjustment Total amountamount (Note)on the1.

consolidated
financialstatements

Sales revenue fromexternal customers
Sales revenue between

54,993

17,946

5,769

13,461

92,171－

92,171

50

1,063

458

－

1,572

△1,572－55,04419,0106,227

13,461

93,744△1,572

92,171

5,799

833

757

6

7,397

△2,065

5,332

25,467

7,333

7,024

5,754

45,5795,356

50,935

7,042

858

1,328

257

9,486

251

9,738

2,918

414

758

194

4,286

294

4,581

segments
Total
Segment profit (operating
profit)Segment assets
Other items
Increased amount in noncurrent assets (note) 2
Depreciation andamortization 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 divisions of our company not belonging to the reporting segment.
② 5,356 million yen adjusted amount of segment assets includes total company assets of 11,619 million yen not allotted
into any of report segment and △ 6,263 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, 2021 to June 30, 2022)(Units: Million yen)Domestic
automotiverelated
business
Sales revenue fromexternal customers
Sales revenue between
segments
Total
Segment profit (operating
profit)Segment assets

Human
resourcesbusinesses

General cargobusinesses

Overseasrelated

Consolidated
financial Total

Total

businesses

Adjustment
amount on theamount (Note)consolidated
1.
financialstatements

51,482

19,3306,423

29,809107,045－

107,045

98

1,127

119

－

1,346

△1,346－

51,58020,4586,543

29,809108,391△1,346

107,045

4,202

666

1,060

184

6,113

△2,2003,912

25,850

6,363

6,932

12,34851,4943,401

54,895

2,902

64

662

44

3,674

44

3,718

Other items
Increased amount in noncurrent assets (note) 2- 13 -

Depreciation andamortization costs (note)

3,025

343

829

285

4,484

198

4,682

2
(Note) 1. The adjusted amount is as follows.
① The △2,200 million yen adjustment amount in the segment profits includes the total company cost △2,200 million yen.
The total company cost is an expense related to the management divisions of our company not belonging to the reporting
segment.
② 3,401 million yen adjusted amount of segment assets includes total company assets of 12,230 million yen not allotted
into any of report segment and △ 8,829 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.
(3) Regional information① The breakdown of sales revenue from external customers by region are as follows.
Previous consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)Japan

Malaysia (note)
79,134

Other

Total

13,022

15

92,171

Current consolidated accounting period (July 1, 2021 to June 30, 2022)(Units: Million yen)Japan

Malaysia (note)
78,115

China

Other
3,384

25,545Total
0107,045② Non-current assets
Information is omitted because the amount of non-current assets located in Japan accounts for the majority of theamount of non-current assets in the consolidated statement of financial position.
(4) Information on major customers
Previous consolidated accounting period (July 1, 2020 to June 30, 2021)(Units: Million yen)
Name or title of customer

Sales revenue

Nissan Motors Group (Note)

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. and Nissan Motors
distributors all over the country.
Current consolidated accounting period (July 1, 2021 to June 30, 2022)(Units: Million yen)
Name or title of customer

Sales revenue

Nissan Motors Group (Note)

Related segment
17,768Domestic automobile-related businesses
Overseas business(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Autech Japan Co. Ltd. and to Nissan Motors
distributors in Japan, as well as those to Dongfeng Motor Co., Ltd. in China and other Nissan Motor affiliates, following theconsolidation of Zero Scm Logistics (Beijing) Co., Ltd as a subsidiary from the current consolidated fiscal year.

- 14 -

(Information per share)
The calculation of basic earnings per share for current period and basic earnings per share after dilution in the previous
consolidated accounting year and current consolidated accounting year are as follows.
(1) Basic earnings per share
Previous consolidated fiscal year
(From July 1, 2020 to June 30,
2021)

Current Consolidated fiscal year
(From July 1, 2021 to June 30,
2022)

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

3,626

2,535

Weighted average number of shares (thousand shares)

16,745

16,804

Basic earnings per share (yen)216.55150.91

Previous consolidated fiscal year
(From July 1, 2020 to June 30,
2021)

Current Consolidated fiscal year
(From July 1, 2021 to June 30,
2022)

3,626

2,535

54

20

16,80016,825215.85150.72(2) Basic earnings per share after dilution

Profit for the year used for calculation of earnings per
share after dilution (million Yen)
Impact of dilutive potential common stock
Stock benefit trust BBT (thousand shares)
Weighted average number of shares after dilution(thousand shares)
Basic earnings per share after dilution (yen)(Business Combination)
Business combination and other relationships are as follows:<<Zero Scm Logistics (Beijing) Co., Ltd.>>
Current consolidated accounting period (July 1, 2021 to June 30, 2022)
On July 1, 2021, our group acquired a partial equity interest (40%) in Zero Scm Logistics (Beijing) Co., Ltd., a jointly
controlled company accounted for by the equity method, and made it a subsidiary.
(1) Outline of the Business Combination(1) Name and business of the acquired company
Name of the acquired company: Zero Scm Logistics (Beijing) Co., Ltd.
Business description: Vehicle transportation business in China(2) Acquisition dateJuly 1, 2021
(3) Percentage of voting equity interest acquired
Percentage of voting rights held immediately prior to the acquisition date: 25%
Percentage of voting rights additionally acquired on the acquisition date: 40%.
Percentage of voting rights after acquisition: 65%(4) Reasons for the business combination
Since its establishment on April 29, 2004, Zero Scm Logistics has been mainly engaged in the land transportation of finishedvehicles in China for Japanese, European and American automobile manufacturers, including marine and rail transportation. In
addition, related operations include customs clearance, storage, and PDI (Pre-Delivery Inspection).
In China, which has become the world's largest automobile market, changes such as the evolution of CASE, MaaS, and carbon
neutrality are on the horizon, and in order to follow these changes in a timely manner, our group aims to speed up the decisionmaking process by making the company a consolidated subsidiary, and further expand its business. Specifically, as the used
vehicle market is expected to be developed in China, we will consider full-scale entry into the used vehicle transportation market.
Also, assuming that electric vehicles produced in China will be imported to Japan in the future, the Zero Group will consider
establishing an integrated domestic and overseas transportation system (complete vehicle transportation in China → export
customs clearance → marine transportation → import customs clearance → complete vehicle transportation, PDI, installation,
registration, delivery, etc. in Japan).
(5) Method of acquiring control of the acquired company
Acquisition of equity interest in exchange for cash

- 15 -

(2) Fair value of acquisition consideration, assets acquired and liabilities assumed as of the acquisition date
(Units: Million yen)
Fair value of acquisition consideration
Fair value on the acquisition date of the shares of the acquired company held
immediately prior to the acquisition date
Fair value of the acquired company shares additionally acquired on the

326
521

acquisition date
Fair value of assets acquired and liabilities assumed
Cash and cash equivalents
Trade and other receivables
Other current assets
Tangible fixed assets
Other non-current assets
Current liabilities
Non-current liabilities

1,153
409
161
306
7
689
41

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

1,306

Non-controlling interest (Note) 1
457
Gain on bargain purchase (Note) 2
1(Note) 1. Non-controlling interest is measured as the share of non-controlling shareholders with respect tothe fair value of the distinguishable net assets of the acquired company.
(Note) 2. Gain on bargain purchase is included in "Other income" in the current consolidated profit and loss
statement because net assets measured at fair value exceeded consideration paid.
(3) Loss on step acquisition
As a result of remeasuring the equity interest in Zero Scm Logistics Co., Ltd., which was held by the Group immediately prior
to the date of acquisition of control, at fair value at the time of acquisition of control, a loss on step acquisition of 0 million yen
was recognized and recorded in "Other expenses" in the summary of quarterly consolidated profit and loss statement.
(4) Acquisition-related expenses
Acquisition-related expenses for this business combination was 8 million yen and is included in "Selling, general andadministrative expenses" in the summary of quarterly consolidated profit and loss statement.
(5) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition
Cash and cash equivalents held by the acquired company at the time ofacquisition
Proceeds from acquisition of shares of subsidiaries resulting in change in scopeof consolidation

△521
1,153
631

(6) Impact of the business combination on the Group's performance
Sales revenue and loss of the acquired company after the acquisition date recognized in the current consolidated profit andloss and other comprehensive income statements for the current reporting period amounted to 3,384 million yen and 30 million
yen, respectively.
<<Zero Plus IKEDA Co., Ltd.>>
Current consolidated accounting period (July 1, 2021 to June 30, 2022)
On May 31, 2022, the Company acquired 100% of the shares of IKEDA Co., Ltd. and made it a subsidiary. On the same day, thebusiness name was changed to "Zero Plus IKEDA Co., Ltd.".
(1) Outline of the Business Combination(1) Name and business of the acquired company
Name of acquired company
Zero Plus IKEDA Co., Ltd.
Description of business
Driven vehicle delivery (land transport)(2) Acquisition date
May 31, 2022
(3) Percentage of voting equity interest acquired
100%(4) Reasons for the business combination
IKEDA Co., Ltd is an operating company that operates a driven vehicle delivery business mainly for construction equipment
rental companies, with more than 300 contracted drivers and services throughout Japan through 11 locations from Tohoku to
Kyushu.
In addition to the vehicle transportation business, which is our core business, we also operate a human resource business thatmainly provides driver dispatch and pick-up services, and a general cargo business. One of our key challenges is to address theshortage of driver personnel in response to the so-called "2024 supply chain issues".

- 16 -

In this era of great change known as the "New Normal", it is expected that the way people work, including drivers, willcontinue to diversify, and we are committed to improving the value and quality we provide to customers in line with the needsof the times and creating an environment where drivers can continue to work with peace of mind, while looking at the possibility
that it will play a part that supports drivers' "desire to work".
(5) Method of acquiring control of the acquired company
Acquisition of equity interest in exchange for cash(2) Fair value of acquisition consideration, assets acquired and liabilities assumed as of the acquisition date
(Units: Million yen)
Fair value of acquisition consideration

1,000

Fair value of assets acquired and liabilities assumed
Cash and cash equivalents
Trade and other receivables
Other current assets
Tangible fixed assets
Other non-current assets
Current liabilities

206
150
60
1
14
206

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

225

Goodwill

774(3) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition
Cash and cash equivalents held by the acquired company at the time ofacquisition
Proceeds from acquisition of shares of subsidiaries resulting in change in scopeof consolidation△1,000206△793(4) Impact of the business combination on the Group's performance
Sales revenue and the consolidated profit of the acquired company after the acquisition date recognized in the current
consolidated profit and loss and other comprehensive income statements for the reporting period amounted to 87 million yen
and 15 million yen, respectively.

- 17 -

(Significant subsequent events)
There are no applicable matters.

- 18 -