Summary of Consolidated Financial Results for the First Quarter Ending of the Fiscal Year June 30, 2023 [Based on IFRS]
November 10, 2022
Company name: ZERO CO., LTD.
Stock code:
9028
URL: http://www.zero-group.co.jp/
Representative:
President & CEO
Inquiries:
Director and Manager of Group Strategies Headquarters
Scheduled Date of Submission of Quarterly Report:
November 11, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
No
Holding of quarterly financial results meeting:No

Stock Exchange Listing: Tokyo
Takeo Kitamura
Toshihiro Takahashi

TEL 044-520-0106(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the first quarter ending of the fiscal year June 30, 2023 (From July 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Sales revenue

Operating income

Profit before tax

Quarterly income

Profit attributable toequity shareholdersof the company
Millions%of yenMillions ofyen%Millions ofyen%Millions ofyen%Millionsof yen%1Q FY2022/2023

33,787

56.4

1,214

93.5

1,221

91.6

815

112.1

810

1Q FY2021/2022

21,596

0.8

627

∆59.9

637

∆59.4

384

∆65.1

392

Basic quarterly earnings per share

Total comprehensive
income of the quarter
Millionsof yen

%

106.2

906

298.8

∆64.3

227

∆79.4

Diluted quarterly earnings per share

Yen

Yen

1Q FY2022/2023

48.13

48.13

1Q FY2021/2022

23.38

23.37

(2) Consolidated financial position
Total assets

Equity attributable to equity
shareholders of the company

Total capital

Equity ratio attributable to equity
shareholders of the company

Millions of yen

Millions of yen

Millions of yen%

1Q FY2022/2023

55,76931,14630,59554.9

FY2021/2022

54,89530,61430,06754.8

2. Cash dividends
1st quarter-end

Annual dividends per share
3rd quarter-end

2nd quarter-end
Yen

FY2021/2022
FY2022/2023
FY2022/2023(forecast)

Yen

-----

15.00

Fiscal year-end

Yen

---

15.00

Total
Yen

Yen

22.70

37.70

25.20

40.20

(Note) Amendment from the most recently announced dividend forecast: No
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

Operating income(Percentages indicate year-on-year changes)
Profit attributable toequity shareholders
Basic earnings per shareof the company

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

109,000

1.8

4,200

7.3

4,200

6.4

2,700

6.5

160.67(Note) Revisions from the most recently released business forecast: Noø(Note)(1) Changes in significant subsidiary companies during the current quarter (Changes in the specific subsidiary companies following changes in the scope of
consolidation):No
New ¾ Co. (Company name),
Exclusions ¾ Co. (Company name)(2) Changes in accounting policies, changes in accounting estimates Changes in the accounting policies required by IFRS Changes in the accounting policies due to other reasons Changes in the accounting estimates(3) Number of issued shares (common shares)
 Total number of issued shares at the end of theperiod (including treasury shares)
 Number of treasury shares at the end of the period
 Average number of shares during the period(total up to this quarter)

:
:
:

No
No
No

1Q FY2022/2023

17,560,242 shares

FY2021/2022

17,560,242 shares

1Q FY2022/2023
1Q FY2022/2023

994,982 shares
16,837,260 shares

FY2021/2022
1Q FY2021/2022

994,982 shares
16,804,810 sharesøEarnings summary is not within the scope of the quarterly review by a certified public accountant or auditorøExplanation of the proper use of financial results forecast and other notes
The earnings forecast, and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that theCompany considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors such as economic status of the majordomestic and international markets or exchange rates fluctuation.

Attached Documents – Table of Contents
1. Qualitative information on the quarterly financial results .................................................................................................................. - 2 (1) Explanation regarding the operating results.................................................................................................................................. - 2 (2) Explanation regarding financial position and cash flow ............................................................................................................... - 4 (3) Explanation regarding the future forecast information such as consolidated business forecast ................................................... - 5 2. Summary of the consolidated financial statements and major notes .................................................................................................. - 6 (1) Summary of quarterly consolidated statement of financial position............................................................................................. - 6 (2) Summary of quarterly consolidated profit and loss statement ...................................................................................................... - 8 (3) Summary of quarterly consolidated statement of comprehensive income.................................................................................... - 9 (4) Summary of quarterly consolidated statement of changes in equity........................................................................................... - 10 (5) Summary of quarterly consolidated cash flow statements .......................................................................................................... - 11 (6) Notes regarding summary of quarterly consolidated financial statements ................................................................................. - 13 (Notes on going concern assumption) ............................................................................................................................................ - 13 (Segment information) ................................................................................................................................................................... - 13 (Business Combination) ................................................................................................................................................................. - 14 --1-

1. Qualitative information on the quarterly financial results(1) Explanation regarding the operating results
Japan's economy during the consolidated cumulative period of the first quarter has been recovering moderately as theimpact of supply constraints on semiconductors has eased and efforts are being made to contain the spread of the COVID19 Pandemic and balance economic activities.
In the domestic automotive market, the total number of new vehicle sales increased to 101.9% (statistical data of theJapan 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), but it's still low at 86.8% comparedto the year before last, mainly due to the sluggish domestic production. The number of used vehicle registrations also
decreased to 95.0% compared to the same period of the previous year, due to the decline in the number of used vehicles
purchased as a result of the rise in the market for used vehicles.
Sales revenue increased in all segments, mainly due to the strong performance of the used vehicle export business to
Malaysia and an increase in the number of units for transportation contracts. Operating profit increased due to higher
utilization rates resulting from increased sales in all segments, despite the impact of higher unit prices for fuel.
As a result, the business results of our group are as follows: sales revenue of 33,787 million yen (156.4% compared tothe same quarter from the previous year) and operating profit of 1,214 million yen (193.5% compared to the same quarter
from the previous year). Also, the profit before taxes was 1,221 million yen (191.6% compared to the same quarter fromthe previous year), and the profit of the quarter attributable to the equity shareholders of the company was 810 million yen(206.2% compared to the same quarter from the previous year).
Number of units related to domestic distribution of automobiles
Domestic

Units: vehicles

July of 2021 to September of 2021 July of 2022 to September of 2022

Compared to theprevious year

Number of new vehicles
sold
Domestic manufacturer *1

949,155

975,680102.8%(out of this, Nissan
Motor)*1(106,035)(116,463)(109.8%)Foreign manufacturer*266,361

58,86088.7%

1,015,516

1,034,540

101.9%

Total of new vehicle sales
Number of registered
used vehicles
Registered vehicles*3879,665

841,488

95.7%

Light vehicles*4

686,875

647,247

94.2%

1,566,540

1,488,735

95.0%

Total number of used
vehicles registered

ExportNew vehicles of domestic*1
manufacturers
Used vehicles (registered*5
vehicles)July of 2021 to September of
2021

July of 2022 to September of
2022

Compared to theprevious year

826,996

1,019,817

123.3%

332,956

317,301

95.3%*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-

The segment business results are as follows.
(1) Domestic automotive related businesses
For vehicle transportation, which is the core business, the number of units for transportation contracts for new and used
vehicles increased due to Nissan Motor and Mitsubishi Motors' vehicle transportation business, which led to an increase
in revenue. In addition, there was an increase in revenue of Zero Plus IKEDA Co., Ltd., which became a consolidated
subsidiary, and as a result, there was an overall increase in revenue in the domestic automotive related business.
Segment profit was affected by increases in unit fuel prices and fuel surcharges for marine transportation due to soaring
crude oil prices and the rapid depreciation of the yen in terms of cost, but in terms of revenue, the introduction of the fuelsurcharge system in September 2022 and the effect of higher utilization rates due to increased revenues outweighed theimpact of higher fuel costs, resulting in an increase in segment profit.
As a result, the overall sales in the domestic automotive related businesses was 13,840 million yen (113.0% comparedto the same quarter from the previous year), and the segment profit was 1,120 million yen (130.8% compared to the samequarter from the previous year).
In the vehicle transportation business, the Group will continue to implement the "Digitalization", "Greening", and"New normal" policies outlined in our mid-term management plan through June 30, 2024.
In the area of Digitalization, we have set up the Transportation “Digitalization” Promotion Office and are promoting
the construction of a system to realize systematic allocation of vehicles. We have also launched and are promoting a new
digitalization project in which crew members record the condition of vehicles entrusted to them by customers using
tablets.
In the area of “Greening”, we have completed the development of transportation equipment with an increased
maximum loading capacity to cope with the increased weight of automobiles as they become more electrically powered,and we will sequentially introduce the equipment. In addition, with the rapid adoption of EVs, a new Sales Planning
Department will be established to study the establishment of an infrastructure that includes the implementation ofancillary services in EV vehicle transportation.
In response to the "New Normal", as the direction of the Ministry of Health, Labour and Welfare's revision of the
Improvement Standards Notice is being finalized, we will reduce indirect time other than operation hours by promotinga system of division of labor in cargo handling while maintaining the operation hours of crew members toward the socalled "Year 2024 Problems", and at the same time, we will promote new hiring of crew members and efficient operationof transportation equipment.
(2) Human resource businesses
In the pickup service business, revenue increased due to the acquisition of new contracts and an increase in MaaS
(Mobility as a Service) services for J:COM (JCOM Co., Ltd.). In the human resources business, revenue increased due
to an increase in the number of dispatched drivers and menial workers mainly in eastern Japan, and in the airport-related
business, revenue increased due to an increase in the number of dispatched personnel along with the recovery in thenumber of flights to and from Japan. Segment profit increased due to increased revenue in each business segment andcost reduction. As a result, the sales revenue of the overall human resource business was 5,099 million yen (108.9%
compared to the same quarter from the previous year), and the segment profit was 216 million yen (159.8% compared tothe same quarter from the previous year).
(3) General cargo business
Revenue in the port cargo handling business increased due to increased fuel cargo handling for biomass power plants,
and the revenue in the transport / warehousing business increased due to the leasing of new warehouses and the launchof the third party logistics. For segment profit, the transport / warehousing business reported a decrease due to start-up
expenses for the newly leased warehouses, but the port cargo handling business reported an increase due to increased
fuel cargo handling for biomass power generation, increasing the revenue in the overall general cargo business as well.
As a result, the sales revenue of the overall general cargo business was 1,706 million yen (116.7% compared to the samequarter from the previous year), and the segment profit was 264 million yen (138.1% compared to the same quarter fromthe previous year).
(4) Overseas Related Businesses
In the used vehicle export business, sales increased significantly due to an increase in the number of vehicles exported
to Malaysia, a major export destination, as a result of an increase in local demand, partly due to the depreciation of theyen, while previous activities to improve customer satisfaction led to an increase in market share. In the CKD business,revenue decreased due to a decrease in packaging volume during the model changeover. In the vehicle transportation
business in China, sales increased due to the recovery of the Chinese automobile market.

-3-

Segment profit increased in the used vehicle export business and the vehicle transportation business in China due toincreased sales, and decreased in the CKD business due to decreased sales.
As a result of the above, the sales revenue of the overall overseas business was 13,142 million yen (409.5% comparedto the same quarter from the previous year), and segment profit was 131 million yen (segment loss of 29 million yen in
the same quarter of the 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 "2. (Segment
information) in the summary of consolidated statements and major notes for the quarter", and totalled 517 million yen.
(2) Explanation regarding financial position and cash flow
(1) Status of assets, liabilities, and equity(Assets)
Current assets increased by 1,028 million yen (4.2%) compared to the end of the previous consolidated fiscal year
to 25,634 million yen.
This was mainly because cash and cash equivalents decreased by 831 million yen, but the operating receivables andother receivables increased by 1,583 million yen and inventories increased by 241 million yen.
Non-current assets decreased by 154 million yen (0.5%) compared to the end of the previous consolidated fiscal
year to 30,135 million yen.
This was mainly due to a decrease of tangible fixed assets of 252 million yen resulting from a decrease of assets ofright to use, etc.
As a result, total assets increased by 874 million yen (1.6%) compared to the previous consolidated fiscal year to
55,769 million yen.
(Liabilities)
Current liabilities increased by 644 million yen (3.5%) compared to the end of the previous consolidated fiscal year
to 19,275 million yen.
This was mainly due to loans increasing by 1,025 million yen, while income taxes payable decreased by 497 millionyen.
Non-current liabilities decreased by 302 million yen (5.3%) compared to the end of the previous consolidated fiscal
year to 5,347 million yen.
This was mainly due to a decrease of 355 million yen in lease liabilities.
As a result, total liabilities increased by 341 million yen (1.4%) compared to the end of the previous consolidated
fiscal year to 24,623 million yen.
(Equity)
Total equity increased by 532 million yen (1.7%) compared to the end of the previous consolidated fiscal year to
31,146 million yen.
This is mainly because retained earnings increased by 409 million yen.

(2) Cash flow status
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the consolidated accounting period of thefirst quarter decreased by 831 million yen compared to the end of the previous consolidated accounting fiscal year to 4,349
million yen.
Each cash flow status category during the consolidated cumulative period of the first quarter and their causes are as
follows.
(Cash flow from operating activities)
Funds obtained as a result of operating activities were 71 million yen (there was an income of 1,411 million yen during
the same period of the previous year).
The main cause of the increase in funds were 815 million yen for profit from the quarter and 1,207 million yen for
depreciation and amortization expenses which are non-fund expenses; the main cause of the decrease in funds were
1,154 million yen increase in trade receivables and 867 million yen for payment of corporate income.
(Cash flow from investment activities)
Net cash used in investment activities was 732 million yen (there was an income of 143 million yen during the same
period of the previous year).
The main itemization breakdown for expenditures was 700 million yen for acquisition of tangible fixed assets andinvestment property.

-4-

(Cash flow from financing activities)
Funds used as a result of financing activities was 169 million yen (expenditures of 1,429 million yen during the same
period of the previous year).
The main itemization breakdown for expenditures were 739 million yen lease liabilities payments and 375 million
yen for dividends, and the main itemization breakdown for income was 951 million yen for short-term borrowings.
(3) Explanation regarding the future forecast information such as consolidated business forecast
We have not made any amendments to the consolidated earnings forecast announced on August 10, 2022.

-5-

2. Summary of the consolidated financial statements and major notes(1) Summary of quarterly consolidated statement of financial position
End of the previous consolidated
accounting year
(June 30, 2022)(Units: Million yen)
End of the consolidated
accounting period of thefirst quarter(September 30, 2022)

AssetsCurrent assets
Cash and cash equivalents

5,180

4,349

Trade and other receivables

15,877

17,460Inventories

2,603

2,844

Other financial assets

471

478

Other current assets

471

500

24,60525,634

Tangible fixed assets

21,19920,946

Goodwill and intangible assets

2,981

2,966

Investment properties

3,145

3,114

497

527

Other financial assets

1,646

1,784

Other non-current assets

427

406

Deferred tax assets

392

390

Total non-current assets

30,29030,135

Total assets

54,89555,769Total current assets
Non-current assets

Investment accounting processed with equity method-6-End of the previous consolidated
accounting year
(June 30, 2022)(Units: Million yen)
End of the consolidated
accounting period of thefirst quarter(September 30, 2022)

Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

8,433

8,151

Loans

4,003

5,029

Lease liabilities

2,666

2,872

Income taxes payable, etc.

996

499

Other current liabilities

2,530

2,722

18,631

19,275

3,851

3,495

Other financial liabilities

82

88

Retirement benefits liabilities

899

913

Other non-current liabilities

306

310

Deferred tax liabilities

511

539

Total non-current liabilities

5,649

5,347

Total liabilities

24,281

24,623

Capital

3,390

3,390

Capital surplus

3,458

3,460

Treasury stock

△667

△667

444

561

23,44023,84930,06730,595546

550

Total Equity

30,614

31,146

Total liabilities and equity

54,89555,769Total current liabilities
Non-current liabilities
Lease liabilities

EquityOther components of funds
Retained earnings
Total equity attributing to the equity shareholders of thecompany
Non-controlling interest-7-(2) Summary of quarterly consolidated profit and loss statement
Consolidated cumulative period
for the previous first quarter(July 1, 2021 to September 30,
2021)(Units: Million yen)
Consolidated cumulative periodof this first quarter(July 1, 2022 to September 30,
2022)

Sales revenue

21,59633,787

Cost of sales△18,734△30,179

2,862

3,608

△2,290△2,452Other income

70

81

Other expenses

△14

△21

627

1,214

Financial profit

18

23

Financial expenses

△9

△14

1

△2

637

1,221

△253

△406

384

815

Equity shareholders of the company

392

810

Non-controlling interest△8

4Profits of the quarter

384

815

Basic quarterly earnings per share (yen)

23.38

48.13

Diluted quarterly earnings per share (yen)

23.37

48.13

Gross Profit
Selling, general and administrative expenses

Operating profit

Investment gain / loss through equity method
Profit before tax
Corporate income tax expenses
Profits of the quarter

Attribution of the profits of the quarter:

Quarterly earnings per share-8-(3) Summary of quarterly consolidated statement of comprehensive income
Consolidated cumulative period
for the previous first quarter(July 1, 2021 to September 30,
2021)(Units: Million yen)
Consolidated cumulative periodof this first quarter(July 1, 2022 to September 30,
2022)

384

815

△206

△26

Financial assets measured by fair value through othercomprehensive profits

45

87

Total of the items not transferring over to profit or loss

△161

61

Conversion difference of business activities overseas

12△1

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

△8

31

4

30

△156

91

227

906

Equity shareholders of the company

231

902

Non-controlling interest△44Comprehensive income of the quarter

227

906

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

Items which may be transferred over to profit or loss

Total of the items which may be transferred over to profit
or loss

Other comprehensive income after tax deduction
Comprehensive income of the quarter

Attribution of the comprehensive income for the quarter:-9-

(4) Summary of quarterly consolidated statement of changes in equity
Consolidated cumulative period of the previous first quarter (from July 1, 2021 to September 30, 2021)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2021

CapitalCapitalsurplusTreasury
stock

3,390

3,437

△681

Conversiondifferenceofbusiness
activities
overseas

Financialassetsmeasuredby fairvaluethroughothercomprehensive
profits

Remeasurement ofdefinedbenefitsystemTotal
othercomponents of funds

Retainedearnings

△31

355

－

324

21,80928,28018

28,298

－

392

392

△8

384

△161

4

△156

△4

227

Profits of the quarter
Other comprehensive income
Comprehensive income ofthe quarter

－

－

－

△0

45

△206

△161

△0

45

△206

△161

392

231

－

△646

△646

△646

－

△0

△0

－

13

13

－

－

Dividends of the surplus△0

Acquisition of treasury stock
Share-based paymenttransactions, etc.

13

Transfer from other capitalcomponent to Retained
earnings

206

206

Changes in scope of
consolidation
Total transactions, etc. withthe owners
Balance on September 30, 2021

Total equity
Nonattributing tocontrolling Total Equity
the equity
interest
shareholdersof thecompany

△206

－

－

457

457

－

13

△0

－

－

206

206

△853

△633

457

△176

3,390

3,450

△681

△31

400

－

369

21,34827,879470

28,349Consolidated cumulative period of the first quarter (from July 1, 2022 to September 30, 2022)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2022

CapitalCapitalsurplusTreasury
stock

3,390

3,458

△667

Conversiondifferenceofbusiness
activities
overseas

Financialassetsmeasuredby fairvaluethroughothercomprehensive
profits

Remeasurement ofdefinedbenefitsystemTotal
othercomponents of funds

Retained
Earnings

155

288

－

444

23,44030,067546

30,614

－

810

810

4

815

92

△0

91

4

906

Profits of the quarter
Other comprehensive income
Comprehensive income ofthe quarter

－

－

－

30

87

△26

92

30

87

△26

92

810

902

－

△376

△376

△376

1

1
－

Dividends of the surplus
Share-based paymenttransactions, etc.

1－

Transfer from other capitalcomponent to Retained
earnings
Total transactions, etc. withthe owners
Balance on September 30, 2022

Total equity
Nonattributing tocontrolling Total Equity
the equity
interest
shareholdersof thecompany

△0

26

25

△25

－

－

1

－

－

△0

26

25

△401

△374

－

△374

3,390

3,460

△667

186

375

－

561

23,84930,595550

31,146- 10 -

(5) Summary of quarterly consolidated cash flow statements
Consolidated cumulative period
for the previous first quarter(July 1, 2021 to September 30,
2021)(Units: Million yen)
Consolidated cumulative periodof this first quarter(July 1, 2022 to September 30,
2022)

384

815

Depreciation and amortization costs

1,150

1,207

Interest income and dividend

△17

△23

9

9

Investment gain / loss through equity method△12Corporate income tax expenses

253

406

Increase / decrease of trade receivables (△ is an increase)590△1,154

Increase / decrease of inventories (△ is an increase)

249

△241

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

56

234

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

6

△12

Other

△196

△318

Subtotal

2,485

926

Interest and dividend received

17

23Interest paid

△9

△9

△1,081

△867

1,411

71

△525

△700

0

2

Payment for intangible assets

△15

△17

Proceeds from acquisition of investments in subsidiaries
resulting in change in scope of consolidation

631

－

Other

51

△16

Cash flow from investment activities

143

△732

Cash flow from operating activities
Profits of the quarter

Interest expense

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- 11 -

Consolidated cumulative period
for the previous first quarter(July 1, 2021 to September 30,
2021)(Units: Million yen)
Consolidated cumulative periodof this first quarter(July 1, 2022 to September 30,
2022)

Net increase or decrease of short-term loans (△ is adecrease)－

951

Repayment of long-term loans

△8

△7

△773

△739

△0

－

△646

△375

△1,429△169

Effect of exchange rate changes on cash and cash equivalents

15△1

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

141

△831

Cash and cash equivalents at the beginning of the year

5,904

5,180

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

6,045

4,349

Cash flow from financing activities

Repayment of lease debts
Payment for acquisitioning of treasury stock
Dividend paid
Cash flow from financing activities- 12 -

(6) Notes regarding summary of quarterly consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Segment information)
The segment information of our group is as follows.
Consolidated cumulative period of the previous first quarter (from July 1, 2021 to September 30, 2021)(Units: Million yen)
Total amounton theAdjustment
quarterly
amountconsolidated(note)
financialstatements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

12,246

4,680

1,461

3,209

21,596－

21,596

14

239

33

－

288

△288

－

12,260

4,919

1,495

3,209

21,885△288

21,596

856

135

191

△29

1,153

△526

627

Overseas
RelatedBusiness

Total

Sales revenue
Sales revenue from externalcustomers
Sales revenue between
segments
Total
Segment profit (operating
profit) (△is loss)(Note). The △526 million yen adjustment amount in the segment profits includes the total company cost △526 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.
Consolidated cumulative period of the first quarter (from July 1, 2022 to September 30, 2022)(Units: Million yen)Totalamount on
Adjustment theamountquarterly(note)
consolidated financial
statements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

13,840

5,099

1,706

13,14233,787－33,787

32

253

25

－

311

△311

－

13,872

5,352

1,731

13,142

34,098△311

33,787

1,120

216

264

131

1,732

△517

1,214

Overseas
RelatedBusiness

Total

Sales revenue
Sales revenue from externalcustomers
Sales revenue between
segments
Total
Segment profit (operating
profit)(Note) The △517 million yen adjustment amount in the segment profits includes the total company cost △517 million yen. The totalcompany cost is an expense related to the management divisions of our company not belonging to the reporting segment.

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(Business Combination)
Consolidated accounting period of the first quarter (from July 1, 2021 to September 30, 2021)
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(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
326
Fair value of the acquired company shares additionally acquired on the521
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
Fair value (net amount) of assets acquired and liabilities assumed
Non-controlling interest (Note) 1

1,153
409
161
306
7
689
41
1,306
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 summary of quarterly 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.

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(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 summary of quarterly consolidated
profit and loss statements for the reporting period amounted to 783 million yen and 20 million yen, respectively.
Consolidated cumulative period of the first quarter (from July 1, 2022 to September 30, 2022)
There are no applicable matters.

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