1社外秘FY2019（2019/7～2020/6）
Financial Results
SupplementaryExplanation
6th August 2020
Zero Co., Ltd.
President & CEO
Takeo Kitamura

2◆ Agenda① FY19 Look Back FY19 Japanese Automobile Market
 FY19 Business Summary and Analysis② FY20 Outlook
 FY20 The COVID-19 Impact
 FY20 Forecast and Positioning3◆ Agenda① FY19 Look Back FY19 Japanese Automobile Market
 FY19 Business Summary and Analysis② FY20 Outlook
 FY20 The COVID-19 Impact
 FY20 Forecast and Positioning

FY19 Look back ① Japanese Automobile Market

4

YOY New Vehicle Sales
113%120%
104%
100%

107%

87%

89%

88% 90% 91%
71%

80%
75%

60%
40%

1,045,522（83.7%）

1,396,242（108.1%）
7855%

9101Q

1112

1,371,726（89.8%）
122Q

377%

836,049（68.2%）43Q

564Q

YOY Used Car Registered
120%

117%

107%

98%

105%

99%

98% 94%

100%

96%

96%

80%

106.9%

60%
781Q

93%

95.5%
910112Q

12

194%

80%

97.0%

93.1%

23Q

34

564Q

Reference：Automobile Dealers AssociationJapan Light Motor Vehicle and Motorcycle AssociationFY19 Look back ② Business Summary（Full-year）

5Difference
Difference
from
from
previous
forecastyear（Unit：Millions ofJPY）

FY18
ResultFY19
Forecast

FY19
ResultSales revenue

90,22895,00089,501▲5,499▲727

Operating income

3,305

4,000

3,675(Ratio)(3.7%)(4.2%)(4.1%)▲325＋370

Profit before tax

3,294

3,980

3,679

▲301＋385

1,658

2,300

2,374＋74＋716

99.74
JPY

138.33JPY

142.30
JPY＋3.97
JPY＋42.56
JPY

24.9
JPY

34.6
JPY

35.6
JPY＋1.0
JPY＋10.7
JPY

Profit attributable
to equity
shareholders of
the company
Basic earnings ofthis year pershareAnnual dividend
per shareFY19 Look back ③ Business Summary（4Q）（Unit:Millions ofJPY）

1-3Q
FY191-3Q
FY19Sales
revenue

66,94471,809 ＋4,865 107.3%

Operatingincome2,175

3,439(3.2%)(4.8%)

888

2,274(Ratio)
Profitattributable
to equity
shareholdersof thecompany

Difference

YOY＋1,264 158.1%＋780 256.1%

64Q
FY194QFY1923,284

17,692 ▲5,592

1,129236(4.9%)(1.3%)

770

100

Difference

YOY76.0%▲89320.9%▲67013.0%

4Q FY19 Overview
 Vehicle Transport＆Automotive Periphery：The number of vehicles transported andpre-delivery inspected fell sharply in response to the drop in new vehicles sales.
 Used Car Export：The number of vehicle exported fell sharply as a result of thelockdown in Malaysia.
 Human Resource：Sales declined due to the suspension of the pick-up service
contractor’s business and the termination of the temporary staffing contracts.

 General Cargo : The number of packing in CKD business declined as a result of thelockdown in Thailand.

FY19 Look back ④ Performance Analysis（Sales Revenue）794,000（Unit：Millions of JPY）

＋3,62592,000▲4,71690,000＋695

90,22888,000

FY18
Sales
Revenue

Automotive Related

Human Resource▲618＋543▲256▲1,090＋76＋287

1-3Q
4Q
Automotive
RelatedBusiness

1-3Q
4Q
HumanResource
Business

1-3Q
4Q
GeneralCargo
Business

65,766 → 64,675
18,527 → 18,603
5,935 → 6,222

General Cargo

89,501FY19Sales
Revenue

Human Resource

1-3Q

4Q

FY19

Pick-up＋380▲290＋90

Dispatch＋120▲210▲90

Airport Related＋200▲120＋80

Total＋700▲620＋80

General Cargo

1-3Q

4Q

FY19＋90▲60＋30

Automotive Related

1-3Q

4Q

FY19Vehicle Transport＋2,380▲2,690▲310

Transport/Warehouse

Automotive Periphery▲450▲500▲950

Port handling▲130＋50▲80＋1,700▲1,530＋170

CKD＋580▲250＋330＋3,630▲4,720▲1,090＋540▲260＋290

Used Car ExportTotalTotal

FY19 Look back ⑤ Performance Analysis（Operating Income）84,500（Unit：Millions of JPY）

＋337

4,000

▲339
▲159＋531

3,500
3,000

3,675
3,305

2,500
FY18
OperatingIncome

Automotive
RelatedBusiness

Automotive Related

Human
Resource
Business

4,894 → 5,426

・Profit improvement in block companies
・Extension of car carriers’
depreciation period
・Drop in unit price of fuel expenses
・Profit decrease in automotive
periphery business・Allowance for bad debts in used car
export business

Human Resource
・Recovery from transient job
advertisement expenses
・Cost reduction

GeneralCargo
BusinessAdjustment

General CargoFY19Operating
Income150 → ▲188＋400 ・Profit increased in the transport/
warehousing business＋320 ・Profit decreased in the port handling＋240business
・Launching cost in CKD business▲300＋10▲180▲170▲130313 → 650

Adjustment▲2,053 → ▲2,212

・General administrative expenses increase▲160＋290＋50

FY19 Look back ⑥ Performance Analysis（B/S）（Unit：Millionsof JPY）

Current assets

Liabilities

Non-current assets

Equity┌──── ＋4,960
──────┐┌──── ＋4,960
──────┐50,00040,00044,51439,554＋10

30,00018,177950,00040,000＋4,95018,18720,000＋3,13944,51439,554＋1,82230,000 16,481

19,62020,00026,327

10,00010,000 23,072

21,377

24,8940June30,2019

June30,2020

 Current : Cash increase and tradereceivables decrease Non-current：Tangible fixed assets
increase0
June 30,2019

June 30,2020

 Liabilities：Lease debts increase* Equity：Retained earnings increase*Due to the application of IFRS 16 (New Lease Standard),
mainly for real estate lease contracts, equivalent value of the total
amount of rentals for a certain period（Total of 4,624 million yen)is recorded on the balance sheet as right-of-use assets(non-current assets) / lease debts (liabilities)

FY19 Look back ⑦ Performance Analysis（C/F）（Unit：Millions of JPY）

FY18

FY19Difference

Cash flow fromoperating activities

1,033

6,538＋5,505

Profit of the year

1,663

2,387＋724

1,708

4,188＋2,480▲1,992345

▲346

▲382

▲36▲2,402▲2,067＋335▲2,195▲1,889＋306▲207▲178＋29▲438▲3,157▲2,719▲563▲3,209▲2,64612552▲73

Depreciation andamortization costs
Increase / decrease of
trade receivables
Other

Cash flow frominvesting activities
Expenditures due tothe acquisition of
tangible fixed asset
Other
Cash flow fromfinancing activities
Repayment of financelease debts
Other

10Comments

Due to application of
IFRS16
Decrease of used car＋2,337
export receivables

Due to application ofIFRS16

11◆ Agenda① FY19 Look Back FY19 Japanese Automobile Market
 FY19 Business Summary and Analysis② FY20 Outlook
 FY20 The COVID-19 Impact
 FY20 Forecast and Positioning

FY20 Outlook ① The COVID-19 Impact in FY20Segment

Automotive
RelatedBusiness

VehicleTransport/
Automotive
Periphery

Weather
Forecast

Human
Resource

Pick-up
Dispatch
Transport/
Warehouse

GeneralCargo

Port Handling
CKD

Comments

１Q

The automobile market is recovering from the COVID-19 impact, but
it is expected to fall sharply compared to the previous year when there
was a rush of demand before the tax increase.

2Q

It is expected to remain at the same level as in the previous year,
when the market was recovering from the COVID-19 effects and theimpact of the tax increase and natural disasters.

3Q

It is expected to remain at the same level as the previous year, whenthe effect of the launch of new models vehicles and COVID-19 wassimultaneously felt.

4Q

Used Car
Export12

It is expected to recover significantly from the previous year when
COVID-19 hit directly, to the same level as the year before last.
Due to the aftermath of the lockdown in Malaysia, it is not expected torecover during the first half of FY20.
Due to COVID-19, some customers terminate pick-up service
contracts.
Some customers terminate temporary staffing contracts in FY19 4Q.
As for airport business, It is not expected to recover during FY20.
Due to COVID-19, some customers' cargo volume decreases.
Sales declines mainly in the vehicle and chassis handling business atKanda Port.
Packing volume decreases due to the suspension of the factory inThailand.

FY20 Outlook ② FY20 Forecast（Unit：Millions ofJPY）

FY19Result13

FY20Forecast

Difference
from FY19

YOYSales Revenue

89,50181,000▲8,501

90.5%

Operating Income

3,675

3,600

▲7598.0%

3,679

3,580

▲9997.3%

2,3742,300▲7496.9%

142.30JPY

137.84JPY▲4.46JPY

96.9%

35.6JPY

34.5JPY(Interim 15.0JPY)(Interim 15.0JPY)▲1.1JPY

96.9%(Ratio)Profit before Tax
Profit attributable toequity shareholdersof the company
Basic earnings ofthis year per share
Dividend per share
FY20 Positioning To break free from the sense of blockage and stagnation caused by the spreadof the COVID-19 infection, then return to a growth trajectory.
 Toward “Coexistence "with coronavirus, to mobilize the power of the ZeroGroup to promote initiatives for FY21 and beyond, including consideration of
new work styles.
 To build a sustainable growth scenario and business portfolio that responds tochanges in social conditions and market trends.

1460th anniversary in October 2021