Summary of Consolidated Financial Results for the 1stquarter ending of the fiscal year June 30, 2018 [Based on IFRS]
November 10, 2017
Company name: Zero ,Co.,LTD.
Stock Exchange Listing:Stock code:9028
http://www.zero,group.co.jp/1
Representative: President
Takeo Kitamura
Inquiries: Director, General Manager Group Strategies
Toshihiro Takahashi
TEL 044-520-0106
Scheduled Date of Submission of Quarterly Report: November 13, 2017
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: No
Holding of quarterly financial results meeting: No

Tokyo(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the 1stquarter ending of the fiscal year June 30, 2018 (From July 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Sales revenue
1stQuarter
ended of
FY2017
1st Quarter
ended of
FY2016

Millions of yen
19,348%
4.4

Millions of yen
1,133

%
∆5.7

Millions of yen
1,131

%
∆8.7

Millions of yen
658

%
∆4.3

Profit attributable toowners of parent
company
Millions of yen
%
659
∆4.2

18,528

∆4.1

1,201

∆12.3

1,238

∆11.7

688

∆27.2

688

1st Quarter ended of FY2017
1st Quarter ended of FY2016

Operating income

Profit before tax

Basic quarterly earnings per share
Yen
39.72
41.49

Quarterly income∆27.2

Total comprehensive
income of the quarter
Millions of yen
710

%
17.0

607

∆35.5

Diluted quarterly earnings per share
Yen
39.69
41.33

(2) Consolidated financial position
Total assets

Total capitalMillions of yen
37,67238,007

1st Quarter ended of FY2017
FY2016

Millions of yen
20,787
20,672Equity attributable to owners ofparent company
Millions of yen
20,774
20,661Equity ratio attributable to owners ofparent company
%
55.1
54.4

2. Cash dividends
1st quarter-end
Yen---

FY2016Yen
15.00

Annual dividends per share
3rd quarter-end
Yen
---

15.00

---

2nd quarter-end

Fiscal year-end

Total

Yen
36.90

Yen
51.90

35.00

50.00

--FY2017
FY2017(forecast)(Note) Amendment from the most recently announced dividend forecast: None

3. Forecast of consolidated financial results for the year ending June 30, 2018 (From July 1, 2017 to June 30, 2018)(Percentages indicate year-on-year changes)
Sales revenue
Full year

Millions of yen
80,700Operating income%
2.0

Millions of yen
5,400(Note) Revisions from the most recently released business forecast: None

Profit before tax%∆4.1

Millions of yen
5,330

%
∆4.3

Profit attributable to owners ofparent company
Millions of yen
%
3,310
∆4.2

Basic earnings per shareYen
199.94

*(Note)(1) Changes in significant subsidiary companies during the current quarter (Changes in the specific subsidiary companies following changes in the scope of
consolidation): No
New __ Co. (Company name),
Exclusions __ Co. (Company name)(2) Changes in accounting policies, changes in accounting estimates!Changes in the accounting policies required by IFRS
"Changes in the accounting policies due to other reasons#Changes in the accounting estimates(3) Number of issued shares (common shares)!Total number of issued shares at the end of theperiod (including treasury shares)"Number of treasury shares at the end of theperiod

:::1st Quarter ended of

No
No
No
17,560,242 shares

FY2017

17,560,242 shares
FY2016

1,030,367 shares
1st Quarter ended of

1,030,367 shares
FY2016FY2017#Average number of shares during the period(total up to this quarter)

16,595,875 shares

1st Quarter ended of FY2016

16,592,510 shares

1st Quarter ended of

FY2017!Earnings summary is not within the scope of the quarterly review!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 theCompany considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors such as economic status of the majordomestic and international markets or exchange rates fluctuation.

 Attached Documents – Table of Contents
1.

2.

Qualitative information on the quarterly financial results

2(1) Discussion on the business performance2(2) Discussion on the financial condition

3(3) Explanation on future forecast information, such as consolidated earnings forecast

4

Summary of the consolidated financial statements and major notes

5(1) Summary of the consolidated quarterly financial statement

5(2) Summary of the consolidated quarterly income statement

7(3) Summary of the consolidated quarterly comprehensive income statement

8(4) Summary of the consolidated quarterly statement of changes in equity

9(5) Summary of the consolidated quarterly statement of cash flows

10(6) Notes on summary consolidated quarterly financial statements

12(Notes on going concern assumption)

12(Segment information)12  

1. Qualitative information on the quarterly financial results.
(1) Discussion on the business performance
During the first quarter of the current fiscal year, as a result of gradual recovery of Japan's economy withimprovements in consumer confidence there has been a steady improvement in the employment and income
environment. In the automotive industry, the domestic manufacturer’s domestic new car sales have beensteady with 104.2% (Japan Automobile Manufacturers’ Association Statistical Data) as compared with thesame quarter of the previous year (hereinafter referred to as the same period of the previous year). The used
car market is showing a trend of picking up from the same quarter of the previous year.
Under these circumstances, the Group has promoted strategic sales activities in response to changes in
the market environment in each segment, and has worked to develop new businesses and create highly valueadded services. We are also continuing to work on compliance with laws and regulations, activities tostrengthen group synergies, transport reforms, and work style reforms.
In the first quarter of the current fiscal year under review, the Group's operating results were, Revenue
was 19,348 million yen (104.4% compared with the same quarter of the previous year), and operating income
was 1,133 million yen (94.3% of the same quarter of the previous year). Income before income taxes was
1,131 million yen (91.3% compared with the same quarter of the previous year), and net income attributable
to the owner of the parent company was 659 million yen (95.8% compared with the same quarter of theprevious year).
Unit sales data relating to domestically-distributed cars
Domestic sales

From July 2016 to September
2016

Unit sales
From July 2017 to September Compared to the2017previous year

New cars
Domestic automakers *1(Nissan Motor)*1
Overseas automakers *2
Total New Cars

1,152,840(121,303)
76,195
1,229,035

1,201,117(152,344)
76,926
1,278,043

104.2%(125.6%)101.0%
104.0%

Used cars
Registered car*3893,924

917,190102.6%

Light vehicles*4675,307

692,570

102.6%

1,569,231

1,609,760

102.6%

46,78645,722

97.7%

Total
Cars registered forpermanent deletion
Exports*3

From July 2016 to September
2016

From July 2017 to September Compared to the2017previous year

Domestic automakers'*1
1,175,938
1,193,933
101.5%
new cars
Used passenger*5331,822345,781104.2%
vehicles*1 Calculated based on the statistics provided by the Japan Automobile Manufacturers Association*2 Calculated based on the statistics provided by the Japan Automobile Importers Association*3 Calculated based on the statistics provided by the Japan Automobile Dealers Association*4 Calculated based on the statistics provided by the Japan Light Motor Vehicle and Motorcycle Association*5 Estimated based on the number of used cars to be exported which have been registered for deletion, whichis recorded in the statistics provided by the Japan Automobile Dealers Association  The business performance of each segment is summarized below.
(1) Automobile-related businessIn vehicle transportation, which is the core business, we are reorganizing the transportation system including
subsidiaries and cooperating companies with the aim of optimal operation of the nationwide distribution network.
Nissan’s domestic new car sales volume, the major customer, was 125.6% (Japan Automobile Manufacturers
Association statistical data), compared to the same quarter of the previous year. We have promoted customer
development activities to expand transactions of new cars and used car transports other than Nissan, resulting inhigher sales. On the other hand, in terms of used car exports, we are reviewing our strategy, and rebuilding ourstructure, resulting in a decline in revenue. In addition, we continue to strive to thoroughly manage cost, while
making efforts to secure our business performance.
As a result, sales revenue for the automobile-related business as a whole amounted to 13,916 million yen(102.9% compared to the same quarter of the previous year), and segment profit was 1,213 million yen (93.1%
compared with the same quarter of the previous year).
(2) Human resources businessWith the trend of recovery in the economy, there is a trend toward increasing manpower demand forcompanies, but soaring labor costs and human resources in metropolitan areas are getting worse. The Group has
promoted regional shifts from large cities with high labor costs, strengthened the sales structure, and has reviewed
the product portfolio through strategic sales activities. In addition to the dispatch of drivers which firmly
progressed, new business entry such as welfare, nursing care and housekeeping services became successful,
resulting in an increase in revenue.
As a result, sales revenue of the human resources business as a whole amounted to 4,045 million yen (110.8%
compared with the same quarter of the previous year), and segment profit was 138 million yen (114.1% comparedto the same quarter of the previous year).
(3) General cargo businessIn addition to steadily acquiring orders from existing customers, we are promoting orders from new customers,
and measures to improve profitability, such as improving operational efficiency, have been effective. In thesubsidiary Kandako Kairiku Unso Co., Ltd., its business performance has been steadily growing, mainly in cargohandling and loading at the harbor, and we have promoted new business acquisition and operational efficiency
improvement in Kyuso company Ltd. As a result, sales revenue was 1,386 million yen (102.8% compared with thesame quarter last year), segment profit was 253 million yen (96.8% compared with the same quarter of the previousyear).
Corporate expenses (expenses pertaining to the management department of the Company) not included in thesegment profit / loss are described in "2. Summary of quarterly Consolidated Financial Statements (Segment
Information)". As stated in "Adjustment amount", it is recorded as 471 million yen.
(2) Discussion on the financial condition(1) Status of assets, liabilities and capital(Assets)
Current assets decreased by 1,407 million yen (7.1%) from the end of the previous consolidated fiscal year
to 18,338 million yen.
This was mainly due to a decrease of 1,537 million yen in cash and cash equivalents.
Non-current assets increased by 1,072 million yen (5.9%) from the end of the previous consolidated fiscal
year to 19,334 million yen.
This was mainly due to an increase of 702 million yen in other non-current assets.
As a result, total assets decreased by 334 million yen (0.9%) from the end of the previous consolidated fiscal
year to 37,672 million yen.

  (Liabilities)
Current liabilities decreased by 287 million yen (2.4%) from the end of the previous consolidated fiscal year
to 11,831 million yen.
This is mainly due to a decrease of 383 million yen in income tax payable, although trade liabilities andother liabilities increased by 313 million yen.
Non-current liabilities decreased by 162 million yen (3.1%) from the end of the previous consolidated fiscal
year to 5,053 million yen.
As a result, total liabilities decreased by 449 million yen (2.6%) from the end of the previous consolidated
fiscal year to 16,885 million yen.
(Total Equity)
Total shareholders' equity increased by 115 million yen (0.6%) from the end of the previous consolidated
fiscal year to 20,787 million yen.
This was mainly due to an increase of 50 million yen in retained earnings to the owner of the parent
company, due to the recording of profit for the quarter under review.
(2) Overview of cash flow
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the 1st quarter consolidated fiscal
year under review amounted to 6,564 million yen, a decrease of 1,537 million yen from the end of the previous
consolidated fiscal year.
The status of each cash flow for the first quarter of the current consolidated fiscal year and their factors are as
follows.
(Cash flows from operating activities)
Cash provided by operating activities was 335 million yen, (as compared to Cash used 805 million yen in
the same quarter of the previous year).
The main breakdown of income is net income of 658 million yen and depreciation expenses of 300 million
yen; the main breakdown of expenditure is 820 million yen in income tax payments.
(Cash flows from investing activities)
Net cash used in investing activities was 1,175million yen (as compared to 144 million yen in the samequarter of the previous year).
The main components of expenditure are expenditure of 697 million yen for acquisition business,
expenditure of 401 million yen for acquisition of tangible fixed assets and investment in real estate, and 79
million yen for purchase of intangible assets.
(Cash flows from financing activities)
Net cash used as a result of financing activities was 696 million yen (as compared to 659 million yen in thesame quarter of the previous year).
The main components of expenditure are expenditure of 236 million yen for repayment of long-termborrowings and payment of 609 million yen for dividends.
(3) Explanation on future forecast information, such as consolidated earnings forecast
We have not made any amendments to the consolidated earnings forecast announced on 10th August 2017.

  

2Summary of the consolidated quarterly financial statements and major notes(1) Summary of the consolidated quarterly financial statement

End of previous consolidated
fiscal year
(30 June 2017)(Unit: Million yen)
End of 1st quarter of current
consolidated fiscal year
(30 September 2017)

8,101

6,564

10,195

10,235

532

730

195

182

719

625

19,745

18,338

9,064

9,399

2,499

2,482

3,628

3,597

927

939

1,837

1,906

83

785

222

222

18,262

19,33438,00737,672

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill, Intangible assets
Investments properties
Investments accounted for using the equity
methodOther financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets  (Unit: Million yen)
End of previous consolidated
End of the 1st quarter of the
fiscal year
current consolidated fiscal year
(30 June 2017)( 30 September 2017)
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Other financial liabilities
Income taxes payable
Other current liabilities
Total current liabilities

6,320

6,634

1,851

1,984

555

550

885

502

2,505

2,159

12,118

11,831

358

 288

2,339

2,283

2,078

2,021

331

332

107

127

5,215

5,053

17,334

16,885

3,390

3,390

3,271

3,284

687

687

283

334

14,403

14,453

20,661

20,77411

13

20,672

20,78738,00737,672

Non-current liabilities
Borrowings
Other financial liabilities
Retirement benefits liabilities
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury stock
Other components of equity
Retained earnings
Total equity attributable to owners of the parent
Non-controlling interest
Total equity
Total liabilities and equity  (2) Summary of the consolidated quarterly income statement
Unit: Million yen
Current 1st quarter of theconsolidated fiscal year
(from 1 July 2017
to 30 September 2017)

Previous 1st quarter of theconsolidated fiscal year
(from 1 July 2016
to 30 September 2016)
Revenue

18,52819,34815,406

16,172

3,121

3,175

1,990

2,091

77

61

7

11

1,201

1,133

14

16

14

19

37

 1

1,238

1,131

550

472

688

658

688

659

-

0

688

658

Basic quarterly earnings per share (yen)

41.49

39.72

Diluted quarterly earnings per share (yen)

41.33

39.69

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit (loss) of investments accounted forusing the equity method
Profit before tax
Income tax expense
Quarterly profit
Quarterly profit attributable to
Owners of the parent company
Non-controlling interest:
Quarterly profit

Quarterly earnings per share



 

(3) Summary of the consolidated quarterly statement of comprehensive income statementstPrevious 1 quarter of theconsolidated fiscal year
(from 1 July 2016
to 30 September 2016)
Quarterly profit

Unit: Million yen
Current 1st quarter of theconsolidated fiscal year
(from 1 July 2017
to 30 September 2017)

688

 658

Re-measurement of defined benefit pension plans

70

Total items that will not be reclassified to profit and loss

7

0

9

40

Share of other comprehensive income of investments
accounted for using the equity method

98

10

Total items that may be reclassified to profit and loss

88

50

80

51

607

710

Other comprehensive income
Items that will not be reclassified to profit and loss

Items that may be reclassified to profit and loss
Assets measured at fair value through othercomprehensive income

Other comprehensive income for the year, net of tax
Total quarterly comprehensive income
Total quarterly comprehensive income attributable to:
Owners of the parent company

607

711


Non-controlling interest

Quarterly Comprehensive income



 



0

607

710

!

(4) Summary of the consolidated quarterly statement of changes in equity
First quarter of the previous fiscal year (from 1 July 2016 to 30 September 2016)(Unit: Million yen)
Total Equity attributable
to the owner of theparent company owner
To belong
Total equity―

21

11,64017,741―

17,741

―

688

688

―

688

80

―

80

607

―

607

75

Quarterly profit

Other comprehensive income
Comprehensive income for thequarter

―

―

―

98

9

7

80

98

9

7

80

Acquisition of treasury stock―

Dividend of surplus―

Stock compensation transaction

11

―
620

―

Transfer from other capitalcomponents to retained
earnings

620

―

620

11

―

11

7

7

7

―

―

―

―

11

―

―

―

7

7

612

608

―

608

3,390

3,261

561

152

85

―

66

11,716

17,739―17,739Total transaction etc. with owner
Balance on 30 September 2016

688

Total equity

ProfitSurplus53

Total of othercapitalcomponents

Conversion
difference of
foreign operations

561

Remeasurement ofdefined benefit
plan

3,249

Changes in fairvalue of availablefor-sale financial
assets3,390

Treasury stock

Capital surplus

Balance on July 1, 2016

CapitalComponents of other capital

No controlling interest

Equity attributable to the owner of the parent company

For the consolidated cumulative first quarter (from July 1, 2017 to September 30, 2017)(Unit: Million yen)
Total Equity attributable to theowner of the parent company owner
To belong Total equity

283

14,403

20,661

11

20,672

―

659

659

0

658

687

81

364

___

Quarterly profit
Other comprehensive income
Comprehensive income for the
year

―

―

―

10

40

0

51

10

40

0

51

Acquisition of treasury stock

51
659

―

Dividend of surplus―

Stock compensationtransaction .

Total equity

Total of other capitalcomponents

Remeasurement of defined
benefit plan

Changes in fair value ofavailable-for-sale financial
assets3,271

Conversion difference of
foreign operations

3,390

Treasury stock

Capital surplus

Balance on July 1, 2017

CapitalComponents of other capital

No controlling interest

ProfitSurplus

Equity attributable to the owner of the parent company

609

711

51
0

710

―

―

609

609
14

14

―

14

1

―

1

Other
Transfer from other capitalcomponents to retained earnings
Total transaction etc. with owner
Balance at 30 September 2017

0

0

0

―

12

―

―

―

0

0

609

3,390

3,284

687

70

404

―

334

14,453



 

1

―

597
20,774

―
―

1

595

13

20,787

(5) Summary of the consolidated quarterly statement of cash flows(Unit: Million yen)Previous 1st quarterof the consolidated Current 1st quarter of the
fiscal year
consolidated fiscal year
(from 1 July 2016
(from 1 July 2017
to 30 September to 30 September 2017)2016)
Cash flows from operating activities:
Quarterly profit
Depreciation and amortization

688
254

658
300

Interest income and dividends

7

6

11
37
550
717
90
111
16
115
812
7
11
1,613
805

15
1
472
121
197
80
57
222
1,163
6
15
820

65
57
89
3
9
!
53

401
5
79
2
13
697!
13

144

1,175

Interest expenses
Share of (profit) loss of investments accounted for using the equity method
Income tax expense(Increase) decrease in trade receivables ( indicates increase)(Increase) decrease in inventories ( indicates increase)
Increase (decrease) in trader payables ( indicates decrease)
Increase (decrease) in retirement benefit liabilities ( indicates decrease)Other
Sub totalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments for property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for intangible assets
Payments for loans receivable
Proceeds from collection of loans receivable
Expenditure for Acquisition of business
Other
Net cash provided by (used in) investing activities  

335

(Unit: Million yen)Previous 1st quarter of the Current 1st quarter of theconsolidated fiscal year consolidated fiscal year
(from 1 July 2016
(from 1 July 2017)
to 30 September 2016)
to 30 September 2017)
Cash flows from financing activities
Net change in short-term borrowings (indicates decrease)

350

300

Proceeds from long-term borrowings

50



Repayment of long-term borrowings

305

236

Repayment of finance lease liabilities

132

150

Dividends paid

620

609

Net cash provided by (used in) financing activities

659

696

1,608

1,537

Cash and cash equivalents at the beginning of the quarter

7,924

8,101

Cash and cash equivalents at the end of the quarter

6,316

6,564

Increase (decrease) in cash and cash equivalents, net (decrease)indicates  

(6) Notes on summary consolidated quarterly financial statements(Notes on going concern assumption)
N/A(Segment Information)
Segment information of the group is as follows:
1st quarter of the previous consolidated fiscal year (from 1 July 2016 to 30 September 2016)(Unit: Million yen)Amountrecorded onquarterly
consolidated
financialstatements

Automotive
relatedbusiness

Human
resourcesbusiness

Generalcargobusiness

13,529

3,651

1,348

18,528



18,528

19

97

27

144

144



13,549

3,748

1,375

18,672

144

18,528

1,303

 121

261

1,685

484

1,201

Adjustment
amount(Note)

Total

Sales revenue
Revenue to external customers
Revenue between segments
Total
Segment Profit (Operating Income)(Note)

Adjustment for segment profit

484 million includes corporate expenses

484 million yen and intersegment transaction elimination

0 million yen. Corporate expenses are expenses related to the management department of the Company not attributable to the reporting segments.

Current fiscal year (from 1 July 2017 to 30 September 2017)(Unit: Million yen)AmountAutomotive

Human

Generalrelatedresourcescargobusinessbusinessbusiness

Total

Adjustme

recorded on

nt amountconsolidated(Note)

financialstatements

Sales revenue
Revenueto external customers

Revenue between segments
Total
Segment Profit (Operating Income)(Note)

Adjustment of segment profit

13,916

4,045

1,386

19,348



19,348

17

216

100

334

334



13,933

4,261

1,487

19,682334

19,348

1,213

138

253

1,604

471

1,133

471 million includes corporate expenses

471 million yen and elimination of intersegment transactions

0

million yen. Corporate expenses are expenses related to the management department of the Company not attributable to the reporting segments.

  