Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2023 [Based on IFRS]
August 10, 2023
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 27, 2023 Scheduled date to commence dividend payments: September 28, 2023
Scheduled Date for the Submission of Annual Securities Report: September 28, 2023
Preparation of supplementary material on financial results:
No
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, 2023 (From July 1, 2022 to June 30, 2023)(1) Consolidated operating results (cumulative)
Sales revenue

FY2022/2023
FY2021/2022(Percentages indicate year-on-year changes)

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

132,861
107,045

24.1
16.1

5,074
3,912

29.7
△26.6

5,080
3,947

Basic earnings of thisyear per share

Diluted earnings of this year
per share

Profit attributable toequity shareholdersof the company

Net Income% Millions of yen
28.7

3,453
2,521

△ 26.6% Millions of yen
37.0% Millions of yen

3,437
2,535

△30.2

35.6

equity shareholders of thecompany

3,815
2,718

△30.1

Total capital profit ratio
before tax

Profit ratio attributable toTotal comprehensive
income of the fiscal
year
%
40.3
△31.2

Sales revenue operating
profit ratio

Yen

Yen

%

%

%

FY2022/2023

203.96

-

10.9

9.1

3.8

FY2021/2022

150.91

8.7

7.4

3.7

150.72(Reference) Investment gain / loss through equity method;

FY2022/2023: △2 million yen,

FY2021/2022: 3 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

FY2022/2023

56,55833,83633,28558.9

1,971.95

FY2021/2022

55,18930,61430,06754.5

1,785.79(Note) In the current consolidated fiscal year ending June 2023, the provisional accounting treatment for the business combination has been finalized.
(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen

Cash flow from investing
activities
Million yen

Cash flow from financing
activities
Million yen

Cash and cash equivalents at endof yearMillion yen

FY2022/2023

8,778△2,167△6,2905,475

FY2021/2022

3,954△3,266△1,6085,180

2. Cash dividends
Annual dividends per share
1st quarterend

Yen

2nd quarterend

3rd quarterend

Yen

Yen

Fiscal yearend

Total dividends(Total)

Total

Dividend
payout ratio(consolidated)

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

Yen

Yen

Million yen%%

FY2021/2022
FY2022/2023

-----

15.00
15.00

-----

22.70
36.00

37.70
51.00

635
872

25.0
25.0

2.2
2.7

FY2023/2024(forecast)

---

15.00

---

36.90

51.90

-

3. Forecast of consolidated financial results for the year ending June 30, 2024 (From July 1, 2023 to June 30, 2024)

Sales revenue
Full year

Millions of yen
121,000

Operating income%△8.9(Percentages indicate year-on-year changes)
Profit attributable to equity
shareholders of the
Basic earnings per sharecompany

Profit before tax

Millions of yen
5,200

%
2.5

Millions of yen
5,200

%
2.4

Millions of yen
3,500

%
1.8

Yen
207.64

(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)

FY2022/2023

17,560,242 shares

FY2021/2022

17,560,242 shares

FY2022/2023
FY2022/2023

956,982 shares
16,856,142 shares

FY2021/2022
FY2021/2022

994,982 shares
16,804,791 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2023 (From July 1, 2022 to June 30, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2022/2023
FY2021/2022

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

58,96753,143

11.0

2,069
2,169

△4.6

△5.5

△15.1

2,648
2,190

Basic earnings per share

Net Income% Millions of yen
20.9
△42.1

1,880
1,385

%
35.7
△47.2

Diluted earnings per share

FY2022/2023

Yen
113.36Yen-

FY2021/2022

83.71

-

(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY2022/2023
41,77625,087
FY2021/2022
37,967
23,628(Reference) Company’s Equity
FY2022/2023: 25,087 million yen

Equity ratio

Net assets per share
%
yen
60.1
1,511.00
62.2
1,426.41
FY2021/2022: 23,628 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.

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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 ……………………………………………………………………………

5(4) Future outlook …………………………………………………………………………………………………………..

5

2. Basic view on selection of accounting standards …………………………………………………………………………..

5

3. Consolidated financial statements and major notes………….………………………………………………………..........

6(1) Consolidated statement of financial position …………………………………………………………………………..

6(2) Consolidated statement of profit or loss ……………………………………………………………………………......

8(3) Consolidated statement of comprehensive income ……………………………………………

9(4) Consolidated statement of changes in equity …………………………………………………………………………..

10(5) Consolidated statement of cash flow ………………………………………………………………………………......

11(6) Notes on consolidated financial statements ………………………………………………………………………........

13(Notes on going concern assumption) ………………………………………………………………………………

13(Segment information) ………………………………………………………………………………………………

13(Information per share) ……………………………………………………………………………………………..

16(Business Combination) …………………………………………………………………………………………….

17(Significant subsequent events) ……………………………………………………………………………………..

21

―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 fiscal year continued to recover moderately as supply constraints insemiconductors and other areas and the impact of the COVID-19 Pandemic have eased, despite the impact of high resource prices.
Even in the domestic automotive market, the total number of new vehicles sales increased to 112.2% (statistical data of theJapan Automobile Manufacturers Association) as compared to the consolidated cumulative period of the same quarter from theprevious year (hereinafter referred to as the same quarter from the previous year). The recovery trend became clearer in thecurrent consolidated accounting year as some automobile manufacturers expanded shipments to the domestic market from the
beginning of the year 2023. The number of used vehicle registrations and sales decreased to 97.8% compared to the same periodof the previous year, due in part to the effect of the temporary levelling off of the used vehicle market, which had been on an
upward trend until the market settled down, although the used vehicle market began to be revitalized as the supply of new cars
recovered.
Revenues increased in all segments, mainly due to the strong performance of the used vehicle export business to Malaysia andan increase in the number of units for transportation contracts. Operating income increased in all segments due to higher marginalincome from increased revenue, despite the impact of fuel costs.
As a result, the business results of our group are as follows: sales revenue of 132,861 million yen (124.1% compared to thesame quarter from the previous year) and operating profit of 5,074 million yen (129.7% compared to the same quarter from theprevious year). In addition, the profit before taxes was 5,080 million yen (128.7% compared to the same quarter from the previousyear), and the profit of the quarter attributable to the equity shareholders of the company was 3,437 million yen (135.6% comparedto the same quarter from the previous year).
(Number of units related to domestic distribution of automobiles)
Domestic

July 2021 to June 2022

July 2022 to June 2023

Units: vehicles
Compared to theprevious year

Number of new vehicles soldDomestic manufacturer*13,830,263

4,317,258

112.7％(out of this, Nissan Motor)*1(428,312)(471,549)(110.1％)

Foreign manufacturer*2239,669

248,485103.7％

4,069,932

4,565,743

112.2％

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

3,591,917

3,483,546

97.0％Light vehicles*42,863,195

2,829,497

98.8％

6,455,112

6,313,043

97.8％

Total number of used vehicles
registered
ExportJuly 2021 to June 2022

July 2022 to June 2023

Compared to theprevious year

New vehicles of domestic*13,529,909
4,104,045
116.3％
manufacturers
Usedvehicles(registered*5
1,276,107
1,322,614
103.6％
vehicles)*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―

[ここに入力][Fuel retail price]
National average

July 2021 to June 2022

July 2022 to June 2023

Unit: Yen / L
Compared to theprevious year

Light oil

*6

146.7

148.8

101.4％

Regular petrol

*6

166.9

168.8

101.1％*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 new and used vehicles
increased, which led to an increase in revenue. In addition, revenue from Zero Plus IKEDA Co., Ltd., which became aconsolidated subsidiary, also contributed to the overall increase in revenue in the domestic automotive related business.
Segment profit was affected by higher unit labour costs and higher unit fuel costs and fuel surcharges for marine transportation
due to soaring crude oil prices and the sharp depreciation of the yen, but the implementation of a fuel surcharge system from
September 2022 offset the impact of higher fuel costs and increased marginal profit due to higher revenues.
As a result, the overall sales revenue in the domestic automotive business was 58,169 million yen (113.0% compared to thesame period from the previous year), and the segment profit was 5,062 million yen (120.5% compared to the same quarter fromthe previous year).
In the vehicle transportation business, the Group continued to implement the "Digitalization", "Greening", and "New normal"
policies outlined in our mid-term management plan through June 30, 2024.
In the area of "Digitalization", we have set up the Transportation Digitalization Promotion Office and are promoting theconstruction of a system to realize systematic allocation of vehicles. In addition, the Group has newly established the DX Strategy
Office to promote a digitalization project in which crew members record the condition of vehicles entrusted by customers using
tablets.
In the area of “Greening”, we have completed the development of transportation equipment with an increased maximum
loading capacity to cope with the increased weight of automobiles as they become more electrically powered, and we willsequentially introduce the equipment. In addition, with the rapid adoption of EVs, a new Sales Planning Department have been
established to study the establishment of an infrastructure that includes the implementation of ancillary services in EV vehicletransportation.
In response to the "New Normal", the direction of the Ministry of Health, Labour and Welfare's revision of the Improvement
Standards Notice has been set, we will reduce indirect time other than operation hours by promoting a system of division oflabour in cargo handling while maintaining the operation hours of crew members toward the "Year 2024 Problems", and at thesame time, we will promote efficient operation of transportation equipment. However, with minimum wages and unit labour costs
rising in tandem with the rise in the consumer price index, we recognize the need to maintain and improve wages while reducing
total hours worked per crew member and the need to hire new crew members equivalent to the reduction in total hours worked
as important management issues.
<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 thenumber of dispatched drivers and temp 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 the number of flights to and from Japan.
Segment profit increased due to increased revenue in each business segment and cost reduction.
As a result, the sales revenue of the overall human resource business was 20,621 million yen (106.7% compared to the samequarter from the previous year), and the segment profit was 750 million yen (112.7% compared to the same quarter from theprevious year).
<General cargo businesses>―3―[ここに入力]

Revenue in the port cargo handling business increased due to increased fuel cargo handling for biomass power plants, and therevenue in the transport / warehousing business decreased due to letting go of unprofitable customers despite starting up a thirdparty logistics business by leasing new warehouses. 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 toincreased 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 6,429 million yen (100.1% compared to the samequarter from the previous year), and the segment profit was 1,187 million yen (112.0% compared to the same quarter from theprevious year).
<Overseas Related Business>
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 the yen andsemiconductor shortages, 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 vehicletransportation business in China, sales increased due to the recovery of the Chinese automobile market.
Segment profit increased in the used vehicle export business and the vehicle transportation business in China due to increased
sales, and decreased in the CKD business due to decreased sales.
As a result, the overall sales revenue in the overseas related businesses was 47,641 million yen (159.8% compared to the same
period from the previous year), and the segment profit was 492 million yen (267.0% compared to the same quarter fromthe previous year).
Furthermore, the company expenses not including the above mentioned segment-wise loss and profit (expenses affiliated withour company’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 on consolidated financial statements (Segment information)” in the summary of
consolidated statements for the quarter,” and totalled 2,417 million yen.
(2) Summary of financial position of the current fiscal period
Status of assets, liabilities, and equity(Assets)
Current assets increased by 1,427 million yen (5.8%) compared to the end of the previous consolidated fiscal year to 26,032
million yen.
This was mainly due to a decrease of 1,033 million yen in trade and other receivables, despite an increase of 2,126 million yen
in inventories.
Non-current assets decreased by 57 million yen (0.2%) compared to the end of the previous consolidated fiscal year and were30,526 million yen.
This was mainly due to a decrease of 455 million yen in tangible fixed assets, despite an increase of 293 million yen in otherfinancial assets.
As a result, total assets increased by 1,369 million yen (2.5%) compared to the previous consolidated fiscal year to 56,558
million yen.
(Liabilities)
Current liabilities decreased by 430 million yen (2.3%) compared to the end of the previous consolidated fiscal year to 18,200
million yen.
This was mainly due to a decrease of 2,403 million yen in borrowings, despite an increase of 643 million yen in trade and otherpayables.
Non-current liabilities decreased by 1,421 million yen (23.9%) compared to the end of the previous consolidated fiscal year to
4,522 million yen.
This was mainly due to a decrease of 1,287 million yen in lease liabilities and a decrease of 243 million yen in liabilities for―4―[ここに入力]

retirement benefits.
As a result, total liabilities decreased by 1,852 million yen (7.5%) compared to the end of the previous consolidated fiscal year
to 22,722 million yen.
(Equity)
Equity increased by 3,221 million yen (10.5%) compared to the end of the previous consolidated fiscal year to 33,836 million
yen.
This is mainly because profit margin increased by 2,986 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 period increased by 294
million yen compared to the end of the previous consolidated fiscal year to 5,475 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 8,778 million yen (there were income of 3,954 million yen during the previous
consolidated fiscal year).
The main cause of the increase in funds were 3,453 million yen for profit from this period and 5,005 million yen for
depreciation and amortization expenses which are non-fund expenses; the main cause of the decrease in funds was an increaseof 2,127 million yen in inventories.
(Cash flow from investment activities)
Net cash used in investment activities was 2,167 million yen (expenditures of 3,266 million yen during the previous
consolidated cumulative period). The main itemization breakdown for expenditures was 1,912 million yen for acquisition of
tangible fixed assets and investment property.
(Cash flow from financing activities)
Funds used due to financing activities were 6,290 million yen (expenditure of 1,608 million yen in the previous consolidated
fiscal year). The main itemization breakdown for expenditures 3,116 million yen lease liabilities payments and 2,526 million yen
for short-term borrowings.
(4) Future outlook
In the next consolidated fiscal year, sales and distribution of automobiles in Japan are expected to recover as the shortage ofsemiconductors is resolved, while exports of used cars to Malaysia are expected to slow down due to a lull in local demand.
The performance forecast of June 2024 period is estimated to be 121,000 million yen of sale earnings, 5,200 million yen ofoperating profits, 5,200 million yen of profit before tax deduction and 3,500 million yen of current period net income owing toowners of 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 is the 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―

[ここに入力]

3. Consolidated financial statements and major notes(1) Consolidated statement of financial position(Units: Million yen)
End of the previous consolidated End of the current consolidated
accounting year
accounting year
(June 30, 2022)(June 30, 2023)
AssetsCurrent assets
Cash and cash equivalents

5,180

5,475

Trade and other receivables

15,877

14,843Inventories

2,603

4,730

Other financial assets

471

469

Other current assets

471

514

24,60526,032

Tangible fixed assets

21,19920,743

Goodwill and intangible assets

3,275

3,378

Investment properties

3,145

3,020

497

533

Other financial assets

1,646

1,939

Other non-current assets

427

433

Deferred tax assets

392

478

Total non-current assets

30,58430,526

Total assets

55,18956,558

Total current assets
Non-current assets

Investment accounting processed with equity method―6―[ここに入力](Units: Million yen)
End of the previous consolidated End of the current consolidated
accounting year
accounting year
(June 30, 2022)(June 30, 2023)
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

8,433

9,077

Loans

4,003

1,600

Lease liabilities

2,666

3,132

Income taxes payable, etc.

996

1,283

Other current liabilities

2,530

3,106

18,631

18,200

3,851

2,563

Other financial liabilities

82

89

Retirement benefits liabilities

899

655

Other non-current liabilities

306

313

Deferred tax liabilities

804

899

Total non-current liabilities

5,943

4,522

Total liabilities

24,57422,722

Capital

3,390

3,390

Capital surplus

3,458

3,461

Treasury stock

△667

△638

444

644

23,44026,42630,06733,285546

550

Total Equity

30,61433,836

Total liabilities and equity

55,18956,558

Total current liabilities
Non-current liabilities
Lease liabilities

EquityOther components of funds
Retained earnings
Total equity attributable to the equity shareholdersof the company
Non-controlling interest―7―[ここに入力](2) Consolidated statement of profit or loss
(Units: Million yen)Previous consolidated fiscal year Current Consolidated fiscal year
(July 1, 2021 to June 30, 2022) (July 1, 2022 to June 30, 2023)
Sales revenue

107,045

132,861

Cost of sales△93,918△117,661

13,127

15,200△9,354△10,331

Other income

258

260

Other expenses

△119

△54

3,912

5,074

70

52

△39

△44

3

△2

3,947

5,080

△1,425△1,626

2,521

3,453

Equity shareholders of the company

2,535

3,437

Non-controlling interest

△14

15

Profit of the year

2,521

3,453

Basic earnings per share (yen)150.91203.96

Basic earnings per share after dilution (yen)150.72－Gross 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―[ここに入力](3) Consolidated statement of comprehensive income(Units: Million yen)Previous consolidated fiscal year Current Consolidated fiscal year
(July 1, 2021 to June 30, 2022) (July 1, 2022 to June 30, 2023)
Profit of the year

2,521

3,453

Remeasurement of defined benefit system

△9

172

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

△66

184

Total of the items not transferring over to profit or loss

△75

356

245

△32

27

37

272

5

197

361

2,718

3,815

2,646

3,811

71

4

2,718

3,815

Other comprehensive income
Items not transferring over to profit or loss:

Items which may be transferred over to profit or loss
Conversion difference of business activities overseas
Other comprehensive income equity of affiliatedcompany accounted for by the equity method
Total of the items which may be transferred over toprofit or loss
Other comprehensive income after tax deduction
Comprehensive income for the year
Attribution of the comprehensive income for the year:
Equity shareholders of the company
Non-controlling interest
Comprehensive income for the year―9―

[ここに入力](4) Consolidated statement of changes in equity
Previous 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

Balance on July 1, 2021

CapitalCapitalsurplus

3,390

3,437

Total equity
Financial
Nonattributableassetscontrolling
Conversion
Remeasurem
Totalmeasured byTreasury
Retained to the equity interest
difference ofent ofother
fair valuestock
earnings shareholders
businessdefined componentsof thethrough
activities
benefitof equity
company
otheroverseas
systemTotal
comprehensive profits

△681

355

△31

－

Profit of the year
Other
comprehensive
incomeComprehensive income
for the year

－

－

－

Share-based
paymenttransactions, etc.
Transfer from other capitalcomponent to Retained
earnings
Changes in scope of
consolidation
Total transactions, etc. with theownersBalance on June 30, 2022

21

324

21,80928,28018

28,298

－

2,535

2,535

△14

2,521

111

86

197

71

2,718

186

△66

△9

111

186

△66

△9

111

2,535

2,646

－

△895

△895

△895

Dividends of the surplus
Acquisition of treasury stock

Total
Equity

△0

－

△0

△0

13

－

35

35

－

－

△0

9

8

△8

－

－

457

457

－

21

13

－

△0

9

8

△904

△859

457

△402

3,390

3,458

△667

155

288

－

444

23,44030,067546

30,614Current 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

Total equity
Financial
Nonattributableassetscontrolling
Conversion
Remeasurem
measured byTreasury
Retained to the equity interest
difference ofent ofTotal otherfair valuestock
earnings shareholders
businessdefined componentsof thethrough
activities
benefitof funds
company
otheroverseas
systemcomprehensive profits

△667

155

288

－

Profit of the year
Other
comprehensive
incomeComprehensive income
for the year

－

－

－

Balance on June 30, 2023

2444

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

Total
Equity

28

－
△0

△172

△173

173

－

－

2

28

－

△0

△172

△173

△451

△593

－

△593

3,390

3,461

△638

172

472

－

644

26,42633,285550

33,836―10―

[ここに入力](5) Consolidated statement of cash flow
(Units: Million yen)Previous consolidated fiscal year Current Consolidated fiscal year
(July 1, 2021 to June 30, 2022) (July 1, 2022 to June 30, 2023)
Cash flow from operating activities
Profit of the year

2,521

3,453

Depreciation and amortization costs

4,682

5,005

Interest income and dividend

△37

△52

Interest expense

38

41

Investment gain / loss through equity method

△3

2

1,425

1,626

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

1,113

Increase / decrease of inventories (△ is an increase)△1,674△2,127

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

442

165

Increase / decrease in retirement benefits liabilities (△ isa decrease)

△32

△24

Other

107

995

Subtotal

5,587

10,200

37

52

△38

△41

△1,632△1,432

3,954

8,778

△2,595△1,912

5

18

△95

△280

631

－

△793

－

△418

7

△3,266△2,167

Corporate income tax expenses

Interest and dividend received
Interest paid
Corporate income tax paid
Cash flow from operating activities
Cashflow from investment activities
Payment for acquisition of tangible fixed assets andinvestment properties
Proceed from sales of tangible fixed assets andinvestment properties
Payment for intangible assets
Proceeds from acquisition of investments in subsidiaries
resulting in change in scope of consolidation
Expenditures from acquisition of investments in
subsidiaries resulting in change in scope of consolidation
Other
Cashflow from investment activities―11―[ここに入力](Units: Million yen)Previous consolidated fiscal year Current Consolidated fiscal year
(July 1, 2021 to June 30, 2022) (July 1, 2022 to June 30, 2023)
Cash flow from financing activities
Net increase or decrease of short-term loans (△ is adecrease)

2,351△2,526

Repayment of long-term loans

△32

△22

△3,031△3,116

△895

△625

△0

－

△1,608△6,290

196

△26

△723

294

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 year

5,180

5,475

Repayment of lease debts
Dividend paid
Payment for acquisitioning of treasury stock
Cash flow from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase / decrease in of cash and cash equivalents (△ is adecrease)―12―[ここに入力](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 unit of ourgroup can be procured and the highest decision-making body conducts regular study for deciding division of management resourcesand evaluating performance.
This group collects the business segments based on the state of management organization and characteristics of the service andcreates report segment as “domestic automotive-related business”, “human resources business” and “general cargo business”.
Main services belonging to each report segment
Segment
Domestic
businesses

automotive

Main service
relatedDomestic 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 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.

―13―[ここに入力]

Previous consolidated accounting period (July 1, 2021 to June 30, 2022)

Sales revenue from externalcustomers
Sales
revenuebetweensegments
Total
Segment
profit)profit(operating

Segment assets(Units: Million yen)
Total amount
Adjustment
on theamount consolidated(note) 1
financialstatements

Domestic
automotive
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

Overseas
RelatedBusiness

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

26,143

8,063

8,795

12,34855,351△161

55,189Total

Other items
Increased amount in noncurrent assets
3,981
64
663
416
5,126
44
5,171
(Note) 2
Depreciation
andamortization costs
3,025
343
829
285
4,484
198
4,682
(Note) 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 thereporting segment.
② △161 million yen adjusted amount of segment assets includes total company assets of 11,623 million yen not
allotted into any of report segment and △11,784 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. In the third quarter of the fiscal year ending June 2023, the provisional accounting treatment for the business combination
has been finalized.
Current consolidated accounting period (July 1, 2022 to June 30, 2023)

Sales revenue from externalcustomers
Sales
revenuebetweensegments
Total
Segment
profit)profitSegment assets(operating(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

5,062

750

1,187

492

7,492

△2,417

5,074

25,734

8,436

9,700

12,461

56,333225

56,558

Total

Other items
Increased amount in noncurrent assets
1,983
56
1,783
958
4,781
29
4,810
(Note) 2
Depreciation
andamortization costs
3,172
320
1,077
302
4,872
132
5,005
(Note) 2(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.

―14―[ここに入力]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, 2021 to June 30, 2022)(Units: Million yen)Japan

Malaysia (note)
78,115

Other
25,545

Total
3,384

107,045

Current consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)Japan

Malaysia (note)
86,225

Other
42,896

Total
3,740

132,861② Non-current assets
Since the amount of non-current assets in Japan accounts for the majority of the amount of non-current assets in the
consolidated statement of financial position, the statements are omitted.
(4) Information on major customers
Previous consolidated accounting period (July 1, 2021 to June 30, 2022)(Units: Million yen)
Name or title of customer

Sales revenue

Related segment

Domestic automotive related businesses
Overseas Related Business(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Nissan Motorsports & Customizing 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 the consolidation of Zero Scm Logistics (Beijing) Co., Ltd as a subsidiary from the current
consolidated accounting year.
Nissan Motors Group (Note)

17,768Current consolidated accounting period (July 1, 2022 to June 30, 2023)(Units: Million yen)
Name or title of customer

Sales revenue

Related segment

Domestic automotive related businesses
Overseas Related Business(Note) Sale results of Nissan Motors Group are total sale results of Nissan Motors Co. Ltd., Nissan Motorsports & Customizing 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 the consolidation of Zero Scm Logistics (Beijing) Co., Ltd as a subsidiary from the previous
consolidated accounting year.
Nissan Motors Group (Note)

19,769―15―

[ここに入力](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
(July 1, 2021 to June 30, 2022)

Current Consolidated fiscal year
(July 1, 2022 to June 30, 2023)

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

2,535

3,437

Weighted average number of shares (thousand shares)

16,804

16,856

Basic earnings per share (yen)150.91203.96

Previous consolidated fiscal year
(July 1, 2021 to June 30, 2022)

Current Consolidated fiscal year
(July 1, 2022 to June 30, 2023)

2,535

－

20

－

16,825－150.72－(2) Basic earnings per share after dilution

Profit for the year used for calculation of earnings per
shareafter 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)(Note) Diluted earnings per share for the current consolidated accounting year is not stated because there are no dilutive shares.

―16―[ここに入力](Business Combination)
Business combination and other relationships are as follows:
Previous consolidated accounting period (July 1, 2021 to June 30, 2022)<<Zero Scm Logistics (Beijing) Co., Ltd.>>
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 date:July 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, andcarbon neutrality are on the horizon, and in order to follow these changes in a timely manner, our group aims to speed up thedecision-making 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 vehicletransportation market. Also, assuming that electric vehicles produced in China will be imported to Japan in the future, the ZeroGroup will consider establishing an integrated domestic and overseas transportation system (complete vehicle transportationin China → export customs clearance → marine transportation → import customs clearance → complete vehicletransportation, PDI, installation, registration, delivery, etc. in Japan).
(5) Method of acquiring control of the acquired company:
Acquisition of equity interest in exchange for cash―17―

[ここに入力](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 acquisition
date

326
521

Fair value of assets acquired and liabilities assumed
Cash and cash equivalents

1,153

Trade and other receivables

409

Other current assets

161

Tangible fixed assets

306

Other non-current assets

7

Current liabilities

689

Non-current liabilities

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 to the fair value ofthe distinguishable net assets of the acquired company.
(Note) 2. Gain on bargain purchase is included in "Other income" in the previous consolidated fiscal year of 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 previous consolidated fiscal year of 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 previous consolidated fiscal year of profit and loss statement.
(5) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition△521

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

1,153

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

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 previous consolidated fiscal yearof income statements for the current reporting period amounted to 3,384 million yen and 30 million yen, respectively.

―18―[ここに入力]<<Zero Plus IKEDA Co., Ltd.>>
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 businessthat mainly provides driver dispatch and pick-up services, and a general cargo business. One of our key challenges is to address
the shortage of driver personnel in response to the so-called "2024 supply chain issues".
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 thepossibility 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 at
Subsequent
Adjusted fair value
initial recognition
adjustments
Fair value of acquisition consideration

1,000

1,000

Cash and cash equivalents

206

206

Trade and other receivables

150

150

Other current assets

60

60

Tangible fixed assets

1

1Intangible assets(note)－

Other non-current assets

14

14

Current liabilities

206

206

Non-current liabilities

Fair value of assets acquired and liabilities assumed

864

864

－

293

293

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

225

570

796

Goodwill

774

△570

203

(Note 1) As the allocation of the acquisition cost was not completed at the end of the previous consolidated accounting year,
a provisional accounting treatment was applied, but the allocation of the acquisition cost has been completed in thecurrent consolidated accounting year. In line with the finalization of this provisional accounting treatment, theamounts of assets and liabilities as of the acquisition date have been revised. The main revisions are an increase of
864 million yen in intangible assets, an increase of 293 million yen in non-current liabilities, and a decrease of 570
million yen in goodwill.
(Note 2) Intangible assets of 864 million yen identified in the business combination are measured based on assumptions suchas estimated future cash flows, discount rates, and the rate of decrease in sales from existing customers, and consist
primarily of customer-related assets of 864 million yen. The estimated useful life of the customer-related assets is―19―[ここに入力]

16 years.
(Note 3) 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 12 million yen and is included in "Selling, general andadministrative expenses" in the previous consolidated fiscal year of profit and loss statement.
(4) Cash flow from acquisition(Units: Million yen)
Cash and cash equivalents used in the acquisition△1,000Cash and cash equivalents held by the acquired company at the time of acquisition
Expenditures from acquisition of investments in subsidiaries resulting in change inscope of consolidation

206
△793

(5) Impact of the business combination on the Group's performance
The amounts of revenue and profit/loss of the acquired company after the acquisition date recognized in the previous
consolidated fiscal year of profit and loss statement for the reporting year are immaterial. Assuming that the business combination
was implemented at the beginning of the current consolidated accounting year, the impact on the Group's business performancefor the current consolidated fiscal year is immaterial and is not disclosed.
Current consolidated accounting period (July 1, 2022 to June 30, 2023)
The business combination with IKEDA Co., Ltd. (now Zero Plus IKEDA Co., Ltd.), which took place on May 31, 2022, wasaccounted for on a provisional basis in the previous consolidated fiscal year because the allocation of the acquisition consideration
was not yet complete. However, the allocation of the acquisition consideration was completed in the consolidated accounting
period of fiscal year. The amount in the summary of consolidated financial statements related to the previous consolidated fiscal
year have been adjusted to reflect the details of the finalization of the provisional accounting process.
(Significant subsequent events)
There are no applicable matters.

―20―