Summary of Consolidated Financial Results for the Third Quarter Ending of the Fiscal Year June 30, 2022 [Based on IFRS]
May 12, 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 : May 13, 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 third quarter ending of the fiscal year June 30, 2022 (From July 1, 2021 to March 31, 2022)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Sales revenue

Operating income

Profit before tax

Profit attributable toequity shareholdersof the company

Net profit

Total comprehensive
income of the quarter

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

3Q FY2021

76,523

11.0

2,906

∆30.9

2,943

∆30.2

1,903

∆34.3

1,906

∆34.4

2,006

∆40.8

3Q FY2020

68,947

∆4.0

4,207

22.3

4,220

22.2

2,897

26.8

2,905

27.7

3,389

63.3

Basic quarterly earnings per share% Millions of yen%

Diluted quarterly earnings per share

Yen

Yen

3Q FY2021

113.42113.24

3Q FY2020

173.53173.05(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%

3Q FY2021

54,74629,906

29,37653.7

FY202050,93528,29828,28055.5

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end
Yen

FY2020
FY2021
FY2021 (forecast)

3rd quarter-end
Yen

15.00
15.00

-----

Fiscal year-end
Yen

-----

Total
Yen

Yen

39.10

54.10

32.80

47.80

(Note) Amendment from the most recently announced dividend forecast: No
3. Forecast of consolidated financial results for the year ending June 30, 2022 (From July 1, 2021 to June 30, 2022)(Percentages indicate year-on-year changes)
Sales revenue

Full year

Operating income

Profit attributable toequity shareholdersof the company

Profit before tax

Basic earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

95,000

3.1

4,750

∆10.9

4,750

∆11.6

3,200

∆11.8

191.09(Note) Revisions from the most recently released business forecast: No(Note)(1) Changes in significant subsidiary companies during the current quarter (Changes in the specific subsidiary companies following changes in thescope 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 other reasons : No
 Changes in the accounting estimates: No(3) Number of issued shares (common shares)
 Total number of issued shares at the end of
the period (including treasury shares)
 Number of treasury shares at the end of theperiod Average number of shares during the period(total up to this quarter)

3Q FY2021

17,560,242 shares

FY202017,560,242 shares

3Q FY2021

994,982 shares

FY20201,018,911 shares

3Q FY2021

16,804,802 shares

3Q FY2020

16,744,851 shares

Earnings summary is not within the scope of the quarterly review by a certified public accountant or auditor
Explanation 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 the Company considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors suchas economic status of the major domestic 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 ............................................................................................................... - 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 third quarter 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 vehicle sales significantly decreased to 83.3%(statistical data of the Japan Automobile Manufacturers Association) as compared to the consolidated cumulative
period of the same quarter from the previous year (hereinafter referred to as the same quarter from the previousyear). The shortage of semiconductors and the new pandemic wave of COVID-19 in Southeast Asia have hada significant impact on the reduction of automobile production due to shortages in the supply of automobile parts.
The number of used vehicle registrations also decreased to 91.8% compared to the same 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 numberof used vehicles purchased as a result of the rise in the market for used vehicles.
Revenue increased due to the consolidation of Zero Scm Logistics (Beijing) Co., Ltd. as a consolidated
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 resultof the slump in automobile distribution, the soaring of unit price of fuel, and a decrease in employment adjustment
subsidies compared to the previous consolidated fiscal year.
As a result, the business results of our group are as follows: sales revenue of 76,523 million yen (111.0%
compared to the same quarter from the previous year) and operating profit of 2,906 million yen (69.1% comparedto the same quarter from the previous year). Also, the profit before taxes was 2,943 million yen (69.8% comparedto the same quarter from the previous year), and the profit of the quarter attributable to the equity shareholdersof the company was 1,906 million yen (65.6% compared to the same quarter from the previous year).
Number of units related to domestic distribution of automobiles
Domestic

Units: vehicles

July of 2020 to March of
2021

July of 2021 to March of
2022

Compared to theprevious year

Number of new vehicles soldDomestic manufacturer*13,610,002

2,998,267

83.1%(out of this, Nissan Motor)*1(394,013)(338,889)(86.0%)*2

210,580

182,71686.8%

3,820,582

3,180,983

83.3%

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

2,991,563

2,728,305

91.2%

Light vehicles*42,357,734

2,183,346

92.6%

4,911,651

91.8%

153,326

87.2%

July of 2020 to March of
2021

July of 2021 to March of
2022

Compared to theprevious year

Total number of used vehicles

5,349,297

registered
Number of vehicles permanently
deleted175,906*3

ExportNew vehicles of domestic
manufacturers*1

3,157,101

2,700,618

85.5%

Used vehicles (registeredvehicles)*5

867,804

981,045

113.0%*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 March ofJuly of 2021 to March of

2021

2022

Compared tothe previous
yearLight oil

*6

117.4

145.1

123.6%

Regular petrol

*6

136.9

165.3

120.7%*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 forby the equity method, and made it a consolidated subsidiary, and as a result, the "Overseas Related Business"reporting segment was added. In addition, the automobile related businesses has been changed to thedomestic automotive related businesses.
For the following comparisons with the same quarter from the previous year, figures for the same quarter
from the previous year have been reclassified to reflect the new segment classifications.
(1) Domestic automotive related businesses
For vehicle transportation, which is the core business, the number of units for transportation contracts
decreased due to the decline in new vehicles sales as well as used vehicle registrations caused by theshortage of semiconductors, which led to a decrease in revenue. Revenue in the maintenance business also
decreased due to a decrease in the number of pre-delivery maintenance and inspection 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.
As a result, the overall sales in the domestic automotive related businesses was 38,503 million yen (92.1%
compared to the same quarter from the previous year), and the segment profit was 3,241 million yen (73.5%
compared to the same quarter from the 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 construction of 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 electricallypowered, and we will sequentially introduce the equipment. Also, with the rapid acceleration of the adoptionof EVs, we will take the initiative in developing the infrastructure 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 labour in cargo handling.
(2) 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 driver dispatch business as well as airport related personnel
business increased as the businesses recovered from the previous year, when they were affected by thetermination of employment contracts due to the COVID-19 pandemic. Segment income decreased due to alower employment adjustment subsidy compared to the previous consolidated fiscal year.
As a result, the sales revenue of the overall human resource business was 14,428 million yen (107.3%
compared to the same quarter from the previous year), and the segment profit was 440 million yen (60.8%
compared to the same quarter from the previous year).

- 3 -(3) General cargo businessIn the port cargo handling business, the full-scale launch of biomass power generation fuel cargo handlinghas 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. Segment profits in the port
cargo handling business increased as a result of the full-scale operation of biomass power generation fuelcargo handling, while in the transport / warehousing business, segment profits increased as a result of thesuccessful acquisition of new customers in addition to the revision of rates and withdrawal from unprofitablebusinesses, 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 4,750 million yen (109.8%
compared to the same quarter from the previous year), and the segment profit was 767 million yen (129.8%
compared to the same quarter from the previous year).
(4) Overseas Related Businesses
In the used vehicle export business, sales increased significantly due to a surge in demand following thelifting of the lockdown in Malaysia, our main export destination, and increased customer satisfaction, which
led to an increase in our market share. Revenue in the CKD business increased as a result of the resumptionof operations at the automobile manufacturing plant in Thailand, one of our customers. In the vehicletransportation 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 fromthis company.
Regarding segment profits, the vehicle transportation business in China posted a loss due to the strong
impact of the semiconductor shortage, 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 of the above, the sales revenue of the overall overseas business was 18,841 million yen (201.1%
compared to the same quarter from the previous year), and segment profit was 131 million yen (segment lossof 46 million yen in the same quarter of the previous year).
Furthermore, the company expenses not included in the abovementioned report segment (expenses
affiliated with our company’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 thequarter", and totalled 1,674 million yen.

(2) Explanation regarding financial position(1) Status of assets, liabilities, and equity(Assets)
Current assets increased by 5,766 million yen (28.7%) compared to the end of the previous consolidated
fiscal year to 25,826 million yen.
This was mainly because cash and cash equivalents decreased by 678 million yen, but the operatingreceivables and other receivables increased by 4,440 million yen and inventories increased by 1,505 millionyen.
Non-current assets decreased by 1,954 million yen (6.3%) compared to the end of the previous
consolidated fiscal year to 28,920 million yen.
This was mainly due to a decrease of tangible fixed assets of 1,326 million yen resulting from amortizationof assets of right to use, etc.
As a result, total assets increased by 3,811 million yen (7.5%) compared to the previous consolidated
fiscal year to 54,746 million yen.
(Liabilities)
Current liabilities increased by 3,970 million yen (26.8%) compared to the end of the previous consolidated
fiscal year to 18,789 million yen.
This was mainly due to short-term borrowings increasing by 3,097 million yen, and an increase of 2,353
million in trade and other payables, while income taxes payable decreased by 710 million yen.
Non-current liabilities decreased by 1,767 million yen (22.6%) compared to the end of the previous
consolidated fiscal year to 6,050 million yen.
This was mainly due to a decrease of 1,867 million yen in lease liabilities.
As a result, total liabilities increased by 2,203 million yen (9.7%) compared to the end of the previous
consolidated fiscal year to 24,840 million yen.

- 4 -(Equity)
Total equity increased by 1,607 million yen (5.7%) compared to the end of the previous consolidated fiscal
year to 29,906 million yen.
This is mainly because profit margin increased by 993 million yen due to the totalling of the quarter profits.

(2) Cash flow status
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the consolidated accounting
period of the third quarter decreased by 678 million yen compared to the end of the previous consolidated
accounting fiscal year to 5,226 million yen.
Each cash flow status category during the consolidated cumulative period of the third quarter and their causes
are as follows.
(Cash flow from operating activities)
Funds obtained as a result of operating activities were 814 million yen (there was an income of 5,414 million
yen during the same period of the previous year).
The main cause of the increase in funds were 3,474 million yen for depreciation and amortization expenses
which are non-fund expenses and a increase of 1,194 million yen in trade payables; the main cause of thedecrease in funds was 3,122 million yen increase in trade receivables.
(Cash flow from investment activities)
Net cash used in investing activities was 1,527 million yen (expenditures of 2,338 million yen during thesame period of the previous year).
The main itemization breakdown for expenditures was 1,688 million yen for acquisition of tangible fixed
assets and investment property, and the main itemization breakdown for income was 631 million yen fromthe acquisition of shares of subsidiaries following a change in the scope of consolidation.
(Cash flow from financing activities)
Funds used as a result of financing activities was 96 million yen (expenditures of 3,647 million yen during
the same period of the previous year). The main itemization breakdown for expenditures were 2,275 million
yen lease liabilities payments and 895 million yen for dividends, while the main itemization breakdown forincome was 3,100 million yen net increase 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 5, 2021.

- 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, 2021)(Units: Million yen)
End of the consolidated
accounting period of the third
quarter(March 31, 2022)

AssetsCurrent assets
Cash and cash equivalents

5,904

5,226

Trade and other receivables

12,914

17,355927

2,433

Other financial assets

7425

Other current assets

306

387

20,06025,826

Tangible fixed assets

21,895

20,569Goodwill and intangible assets

2,320

2,218

Investment properties

3,262

3,176

788

462

1,686

1,672

Other non-current assets

541

444

Deferred tax assets

379

377

Total non-current assets

30,87528,920Total assets

50,93554,746Inventories

Total current assets
Non-current assets

Investment accounting processed with equity
methodOther financial assets- 6 -End of the previous
consolidated accounting year
(June 30, 2021)(Units: Million yen)
End of the consolidated
accounting period of the third
quarter(March 31, 2022)

Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

6,283

8,637

Loans

1,572

4,670

Lease liabilities

3,066

2,635

Income taxes payable, etc.

1,161

451

Other current liabilities

2,735

2,396

14,81918,789

22

－

5,964

4,096

Other financial liabilities

80

81

Retirement benefits liabilities

962

951

Other non-current liabilities

308

319

Deferred tax liabilities

478

601

Total non-current liabilities

7,817

6,050

Total liabilities

22,636

24,840Capital

3,390

3,390

Capital surplus

3,437

3,462

Treasury stock

△681

△667

324

387

21,80922,80228,28029,37618529

Total Equity

28,29829,906

Total liabilities and equity

50,93554,746

Total current liabilities
Non-current liabilities
Loans
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(Units: Million yen)
Consolidated cumulative
period for the previous third
quarter(from July 1, 2020
to March 31, 2021)

Consolidated cumulative
period of this third quarter(from July 1, 2021
to March 31, 2022)

Sales revenue

68,94776,523

Cost of sales△58,744△66,715Gross Profit

10,202

9,808△6,555△6,963

Other income

796

147

Other expenses

△236

△85

4,207

2,906

10

65

△30

△28

32

0

4,220

2,943

△1,322△1,040

2,897

1,903

2,905

1,906

Non-controlling interest△7△2Profits of the quarter

2,897

1,903

Basic quarterly earnings per share (yen)173.53113.42

Diluted quarterly earnings per share (yen)173.05113.24

Selling, general and administrative expenses

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

Attribution of the profits of the quarter:
Equity shareholders of the company

Quarterly earnings per share- 8 -(3) Summary of quarterly consolidated statement of comprehensive income(Units: Million yen)
Consolidated cumulative
period for the previous third
quarter(from July 1, 2020
to March 31, 2021)
Profits of the quarter

Consolidated cumulative
period of this third quarter(from July 1, 2021
to March 31, 2022)

2,897

1,903

155

△17

311

△37

467

△55

－

163

24

△5

24

158

491

103

3,389

2,006

3,397

1,951

△7

54

3,389

2,006

Other comprehensive income
Items not transferring over to profit or loss:
Remeasurement of defined benefit system
Financial assets measured by fair value throughother comprehensive profits
Total of the items not transferring over to profit orloss

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 of the quarter

Attribution of the comprehensive income for the quarter:
Equity shareholders of the company
Non-controlling interest
Comprehensive income of the quarter- 9 -(4) Summary of quarterly consolidated statement of changes in equity
Consolidated accounting period of the third quarter (from July 1, 2020 to March 31, 2021)(Units: Million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2020

CapitalCapitalsurplusTreasury
stock

3,390

3,394

△681

Conversi
ondifferenc
e ofbusiness
activities
overseas

Financialassetsmeasured by fairvaluethroughothercomprehensiveprofits

Remeasurement ofdefinedbenefitsystemTotal
othercomponents of
funds

△108

179

－

70

18,69024,86429

24,894

--

2,905

2,905

△7

2,897

Profits of the quarter
Other comprehensive
incomeComprehensive incomeof the quarter

--

--

--

24

311

155

491

24

311

155

491

2,905

3,397

--

△588

△588

△588

--

△0

△0

--

43

43
--

Dividends of the surplus
Acquisition of treasury stock△0

Share-based paymenttransactions, etc.

Total equity
attributing
Nonto
controlling Total Equity
Retained the equity
interest
Earnings shareholdersof thecompany

43

Transfer from other capitalcomponent to Retained
earnings

491

△155

△155

155

--

491
△7

3,389

Total transactions, etc.
with the owners

--

43

△0

--

--

△155

△155

△433

△545

--

△545

Balance on March 31, 2021

3,390

3,437

△681

△84

491

--

406

21,162

27,71621

27,738

Consolidated cumulative period of this third quarter (from July 1, 2021 to March 31, 2022)(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

Conversi
ondifferenc
e ofbusiness
activities
overseas

Financialassetsmeasured by fairvaluethroughothercomprehensiveprofits

Remeasurement ofdefinedbenefitsystemTotal
othercomponents of
funds

△31

355

－

324

21,80928,28018

28,298

－

1,906

1,906

△2

1,903

45

57

103

54

2,006

Profits of the quarter
Other comprehensive
incomeComprehensive incomeof the quarter

－

－

－

101

△37

△17

45

101

△37

△17

45

1,906

1,951

－

△895

△895

△895

Dividends of the surplus
Acquisition of treasury stock
Share-based paymenttransactions, etc.

25

Total equity
attributing
Nonto
controlling Total Equity
Retained the equity
interest
Earnings shareholdersof thecompany

△0

－

△0

△0

13

－

39

39

－

－

Transfer from other capitalcomponent to Retained
earnings△017Changes in scope of
consolidation

16

△16

－

457

457

△912

△855

457

△398

22,802

29,376529

29,906－

Total transactions, etc.
with the owners

－

25

13

－

△0

17

16

Balance on March 31, 2022

3,390

3,462

△667

70

317

－

387

- 10 -

(5) Summary of quarterly consolidated cash flow statements(Units: Million yen)
Consolidated cumulative
period for the previous third
quarter(from July 1, 2020
to March 31, 2021)

Consolidated cumulative
period of this third quarter(from July 1, 2021
to March 31, 2022)

Cash flow from operating activities
Profits of the quarter

2,897

1,903

Depreciation and amortization costs

3,418

3,474

Interest income and dividend

△9

△35

Interest expense

29

28

Investment gain / loss through equity method

△32

△0

Corporate income tax expenses

1,322

1,040

△1,490△3,122△424△1,504

1,572

1,194

△126

△7

Other

△253

△565

Subtotal

6,904

2,405

9

35

△29

△28

△1,469△1,5985,414

814△2,143△1,688

29

3

△78

△51

－

631

△145

△422

△2,338△1,527

Increase / decrease of trade receivables (△ is anincrease)
Increase / decrease of inventories (△ is an increase)
Increase / decrease of trade payables(△ is a decrease)
Increase / decrease in retirement benefits liabilities (△is a decrease)

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 andinvestment properties
Payment for intangible assets
Proceeds from acquisition of investments in
subsidiaries resulting in change in scope of
consolidation
Other
Cash flow from investment activities- 11 -

(Units: Million yen)
Consolidated cumulative
period for the previous third
quarter(from July 1, 2020
to March 31, 2021)

Consolidated cumulative
period of this third quarter(from July 1, 2021
to March 31, 2022)

Cash flow from financing activities
Net increase or decrease of short-term loans (△ is adecrease)

△535

3,100

Repayment of long-term loans

△44

△25

△2,478△2,275

△0

△0

△588

△895

△3,647

△96

－

130

△571

△678

Cash and cash equivalents at the beginning of the year

4,779

5,904

Balance of cash and cash equivalents at the end of thequarter

4,207

5,226

Repayment of lease debts
Payment for acquisitioning of treasury stock
Dividend paid
Cash flow from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase / decrease in of cash and cash equivalents (△is a decrease)- 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 accounting period of the third quarter (from July 1, 2020 to March 31, 2021)

Domestic
Human
GeneralOverseas
automotive
resource
cargo
Relatedrelatedbusinesses businesses Businessbusinesses

Total(Units: Million yen)
Total amounton theAdjustment
quarterly
amountconsolidated(note)
financialstatements

Sales revenue
Sales revenue fromexternal customers
Sales revenue between
segments
Total

41,807

13,445

4,326

9,368

68,947－

68,947

39

746

360

－

1,146

△1,146－

41,846

14,192

4,686

9,368

70,093△1,146

68,947

Segment profit (operating
4,412
724
591
△46
5,682
△1,474
4,207
profit)(△ is loss)(Note). The △1,474 million yen adjustment amount in the segment profits includes the total company cost △1,475 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 this third quarter (from July 1, 2021 to March 31, 2022)

Domestic
Human
GeneralOverseas
automotive
resource
cargo
Relatedrelatedbusinesses businesses Businessbusinesses

Total(Units: Million yen)
Total amounton theAdjustment
quarterly
amountconsolidated(note)
financialstatements

Sales revenue
Sales revenue fromexternal customers
Sales revenue between
segments
Total

38,503

14,4284,750

18,841

76,523－76,523

66

833

88

－

988

△988

－

38,56915,261

4,839

18,841

77,512△988

76,523

Segment profit (operating
3,241
440
767
131
4,580
△1,673
2,906
profit)(Note). The △1,673 million yen adjustment amount in the segment profits includes the total company cost △1,674 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.
(Matters concerning changes in reporting segment)
From the first quarter consolidated accounting period, 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, andhas 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 included in the "automobile-related businesses" segment, and the CKD business,
which was previously included in the "general cargo business" segment, have been reclassified into the "overseasrelated business" segment. In addition, the automobile related businesses has been changed to the domestic
automotive related businesses.
Furthermore, the segment information for the consolidated cumulative period for the previous third quarter isprovided based on the new reporting segment classifications.

- 13 -

(Business Combination)
Consolidated cumulative period of this third quarter (from July 1, 2021 to March 31, 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 transportationof finished vehicles 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 groupaims to speed up the decision-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 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 andoverseas transportation system (complete vehicle transportation in China → export customs clearance → marinetransportation → 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 acquiredcompany held immediately prior to the acquisition date
326
Fair value of the acquired company shares additionally acquired on theacquisition 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

521

1,153
409
161
306
7
689
41
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 withrespect to the 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 and administrative expenses" in the summary of quarterly consolidated profit and loss statement.

- 14 -

(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 scope of 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 and other comprehensive income statements for the reporting period amounted to2,639 million yen and 4 million yen, respectively.
(Business Combination)- 15 -