Summary of Consolidated Financial Results for the 3rd quarter ending of the fiscal year June 30, 2018

[Based on IFRS]
May 11, 2018

Company name: ZERO CO., LTD.
Stock code:9028
http://www.zero-group.co.jp/
Representative:
President & CEO
Inquiries:
Director, General Manager Group Strategies
Scheduled Date of Submission of Quarterly Report:
May 14, 2018
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Stock Exchange Listing:Takeo Kitamura
Toshihiro Takahashi

Tokyo

TEL 044-520-0106

No
No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the 3rd quarter ending of the fiscal year June 30, 2018 (From July 1, 2017 to March 31, 2018)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Profit attributable toTotal comprehensive
owners of parent
Sales revenue
Operating income
Profit before tax
Quarterly income
income of the quartercompany
3Q FY2017
3Q FY2016

Millions of yen
59,59659,375%0.4
0.2

Millions of yen
3,194
4,534

Basic quarterly earnings per share

%
∆29.6
0.7

Millions of yen
3,182
4,492

%
∆29.2
∆2.9

%
∆42.1
∆8.2

Millions of yen
1,633
2,801

% Millions of yen
∆41.7
1,763
∆8.2
3,013

%
∆41.5
2.5

Diluted quarterly earnings per share

Yen
98.44
168.293Q FY2017
3Q FY2016

Millions of yen
1,623
2,801

Yen
98.35
168.02(2) Consolidated financial position
Total assets
Millions of yen
38,79338,0073Q FY2017
FY2016Equity attributable to owners ofparent company

Total capitalMillions of yen
21,61920,672Equity ratio attributable to ownersof parent company

Millions of yen
21,601
20,661

%
55.7
54.4

2. Cash dividends
1st quarter-end
Yen
FY2016FY2017

Annual dividends per share
3rd quarter-end

2nd quarter-end
Yen
15.00
15.00

-----

Fiscal year-end

Yen
-----

FY2017 (forecast)

Total
Yen
36.90

Yen
51.90

15.10

30.10

(Note) Amendment from the most recently announced dividend forecast: Yes
3. Forecast of consolidated financial results for the year ending June 30, 2018 (From July 1, 2017 to June 30, 2018)
Sales revenue
Full year

Millions of yen
80,700Operating income%
2.0

Millions of yen
4,050(Note) Revisions from the most recently released business forecast: Yes(Percentages indicate year-on-year changes)
Profit attributable to owners
Basic earnings per shareof parent company

Profit before tax%∆28.1

Millions of yen
4,030

%
∆27.6

Millions of yen
2,000

%
∆42.1

Yen
120.51

Ú(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 estimatesc Changes in the accounting policies required by IFRSd Changes in the accounting policies due to other reasonse Changes in the accounting estimates(3) Number of issued shares (common shares)
c Total number of issued shares at the end of theperiod (including treasury shares)d Number of treasury shares at the end of the period
e Average number of shares during the period(total up to this quarter)

:
:
:

No
No
No

3Q FY2017

17,560,242 shares

FY2016

17,560,242 shares

3Q FY2017
3Q FY2017

1,030,367 shares
16,595,875 shares

FY20163Q FY2016

1,030,367 shares
16,646,961 sharesÚEarnings summary is not within the scope of the quarterly review by a certified public accountant or auditorÚExplanation 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 such as economic status of the major domestic andinternational 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 －

1.  Qualitative  information  on  the  quarterly  financial  results.
(1)

Discussion  on  the  business  performance
In  the  Japanese  economy  in  the  consolidated  cumulative  third  quarter,  a  modest  recovery  continued,  and  even  though  individual   consumption   was   improving   in   response   to   a   steady   employment/income   environment,   the   future   remains  uncertain   due   to,   among   other   things,   the   uncertainty   of   overseas   economies.   Meanwhile,   in   the   domestic   new   vehicle  market,  the  total  number  of  new  car  sales   was  at  99.8%  when  compared  to  the   quarterly  consolidated  total   for  the  same  period   in   the   previous   year   (hereinafter   referred   to   as   “the   same   period   one   year   ago”)   (Japan   Automobile   Dealers  Association  statistics  data),  the  turn  toward  a  negative  was  due  to  the  finished  vehicle  inspection  issue  in  addition  to  a  lull  in  the  new-model  effect,  resulting  in   a   loss  of  momentum.   While  the   number  of  used   cars   registered  increased   year-onyear,  the  used  car  market  slowed  due  to  the  decrease  in  new  car  sales.    
Under   such   environmental   conditions,  our   group  tried  to  promote  strategic  business   activities   corresponding  to  the  changes  in  the  market  environment  in  each  business  segment  and  develop  new  businesses  and  create  services  with  high  added  value.  Further,  we  are   continuing  with  compliance  activities,  activities  to  strengthen  group  synergy,  transportation  reform,  and  work  style  reform.
As   for   the   business   results   of   our   group   in   the   consolidated   cumulative   third   quarter,   sales   revenue   was   59,596  million   JPY   (year-on-year   100.4%)   and   operating   income   was   3,194   million   (year-on-year   70.4%).   In   addition,   income  before  income  taxes    was  3,182  million  (year-on-year  70.8%)  and  quarterly  profit  attributable  to  the  owners  of  the  parent  company  was  1,633  million  JPY  (year-on-year  58.3%).

Unit  Sales  Data  Relating  to  Domestically-Distributed  Cars
Domestic  sales
New  Vehicles
Domestic  makers(Nissan  Motors)
Foreign  makers
Total  of  new  vehicles

Unit  sales

07/2016  –  03/2017

07/2017  –  03/2018

Year-on-year*2

3,770,383(467,587)
230,275
4,000,658

3,758,731(453,232)
233,586
3,992,317

99.7%(96.9%)
101.4%
99.8%

Registered  vehicles*32,879,671

2,883,488

100.1%

Light  vehicles*42,288,426

2,338,724

102.2%

5,168,097

5,222,212

101.0%

167,746

165,257

98.5%

*1
*1
*2

Used  Vehicles

Total  of  used  vehicles
Car  registered  forpermanent  deletion*3

Exports
Domestic  automaker’s  new  vehicles

07/2016  –  03/2017
3,556,498*1

Used  passenger  vehicles  07/2017  –  03/2018
3,669,365

Year-on-year
103.2%

1,018,358
1,033,248
101.5%*5*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,  which  is  recorded  in  the  statistics  provided  by  the  Japan  Automobile  Dealers  Association－

2 －The  business  results  of  the  segments  are  as  follows.
①

Vehicle  Related  Business
The  main  business,  vehicle  transportation,  had  an  increase  in  sales  due  to  a  reorganization  of  the  business  organization  to  a  system  that  promotes  customer  strategy,   regional  strategy,   and  product  strategy  and   the  implementation  of  various  strategies   such   as   customer   development   activities,   aimed   at   expanding   the   domestic   new/used   car   transportation  business.  However  with  regard  to  used  car  exports,  it  was  unable  to  make  up  for  the  decrease  in  sales    due  to  the  progress  of  system  rebuilding  pursuant  to  strategic  revision,  resulting  in  a  fall  in  sales    in  the  overall  vehicle  related  business.
Taking  the  opportunity  of  establishment  for  regional  transportation  companies,  the  reorganization  of  the  transportation  system,  including  subsidiaries  and  subcontractors,  has  progressed,  and  we  were  aiming  to  achieve  optimal  management  of  the  national  logistics  network  while  continuing  to  take  initiatives  to  ensure  thorough  cost  control.  Meanwhile,  due  to  the  strengthening  of  compliance  with  vehicle  restrictions  cabinet  orders,  the  promotion  of  work  style  reform,  and  the  rise  of   the   labor   cost   unit   price   caused   by   a   lack   of   transportation   drivers,   in   the   handling   of   load   volumes   exceeding  transportation   capacity   in   March,   the   busy   season,   some   orders,   mostly   for   used   car   transportation,   were   passed   up,  resulting   in   missed   opportunities.   Further,   fuel   cost   rose,   depreciation   increased   due   to   an   increase   of   transportation  vehicles,   and   the   finished   vehicle   inspection   issue   were   causes   for   reduced   profits,   and   profits   for   the   overall   vehicle  related  business  decreased.
As  a  result  of  the   above,  sales  revenue   was  43,245  million  JPY  (year-on-year  98.2%)  and  segment  profit   was  3,543  million  JPY  (year-on-year  76.2%).

②

Human  Resources  Business
The      demand   of   manpower      for   companies   was   on   an   increasing   trend   in   conjunction   with   the   economic   recovery,  however  the  remarkable  rise  in  labor  costs  and  the  difficulty  in  hiring  new  personnel  was  worsening  in  major  cities.  Our  group   has  promoted  a   shift  from  major   cities   where  labor   costs   were   high  to   regional   areas   and  a   strengthening   of   the  sales   system,   and   we   have   revised   our   product   portfolio   in   accordance   with   strategic   business   activities.   While   sales    increased  due  to  driver  dispatch  remaining  steady  and  our  entrance  into  new  fields  such  as  nursing/care  and  housework  services,   profit  decreased  due   to   recruitment  costs  increase   and   start-up   costs   in   conjunction   with   the   launching   of  our  temporary  staffing  business  in  the  airport  industry.  As  a  result  of  these,  sales  revenue  was  12,197  million  JPY  (year-onyear  109.5%)  and  segment  profit  was  391  million  JPY  (year-on-year  80.8%).

③

  General  Cargo  BusinessIn   the   general   cargo   transportation   and   warehousing   business,   sales   increased   due   to   the   acquiring   new   orders   of  existing  customers  and  the  acquisition  of  new  customers,  however  profits  decreased  due  to  the  impact  from  the  loss  of  coal  loading  spot  projects,   the  decrease  of   vehicles  loading   and,   consequently,   there   was  decrease   in   sales     and  profits  overall   for   the   cargo   business.   As   a   result   of   these,   sales   revenue   was   4,153   million   JPY   (year-on-year   99.1%)   and  segment  profit  was  757  million  JPY  (year-on-year  96.2%).
Further,   overall   company   expenses   (such   as   expenses   pertaining   to   our   company’s   management   department)      not  included  in  the  above  report  segments  are  accounted  for  in  the  “adjustment  amount”  as  per  the  description  in  “Segment  Information”  of  “2.  Quarterly  Consolidated  Financial  Statements  and  Main  Notes,”  and  were  1,498  million  JPY.

(2)  Discussion  on  Discussion on the financial condition  ①  Assets,  Liabilities,  and  Capital  Condition(Assets)
Current  assets  decreased  by  1,210  million  JPY  (6.1%)  in  comparison  with  the  end  of  the  previous  consolidated  fiscal  year  and  is  18,534  million  JPY.
Mainly,  this  was  due  to  trade  receivables  and  other   receivables  increasing  by  1,385  million  JPY  and  cash  and  cash  equivalent  decreasing  by  2,957  million  JPY.
Non-current  assets  increased  by  1,997  million  JPY  (10.9%)  in  comparison  with  the  end  of  the  previous  consolidated  fiscal  year  and  is  20,259  million  JPY.
Mainly,   this   was   due   to   tangible   fixed   assets   such   as   vehicles   increasing   by   1,539   million   JPY   and   goodwill   and  intangible  asset  increasing  by  388  million  JPY.
As   a   result,   total   assets   increased      by   786   million   JPY   (2.1%)   in   comparison   with   the   end   of   the   previous  consolidated  fiscal  year  and  is  38,793  million  JPY.
(Liabilities)
Current   liabilities   increased   by   339   million   JPY   (2.8%)   in   comparison   with   the   end   of   the   previous   consolidated  fiscal  year  and  is  12,458  million  JPY.
Mainly,  this  was  due  to  borrowings  decreasing  by  488  million  JPY  and  trade  payables  and  other  payables  increasing  by  1,079  million  JPY.
Non-current  liabilities  decreased  by  499  million  JPY  (9.6%)  in  comparison  with  the  end  of  the  previous  consolidated  fiscal  year  and  is  4,715  million  JPY.
As   a   result,   total   liabilities   decreased   by   160   million   JPY   (0.9%)   in   comparison   with   the   end   of   the   previous  consolidated  fiscal  year  and  is  17,174  million  JPY.
－

3 －(Capital)
Total   capital   increased   by   946   million   JPY   (4.6%)   in   comparison   with   the   end   of   the   previous   consolidated   fiscal  year  and  is  21,619  million  JPY.
Mainly,   this   was   due   to   earned   surplus   increasing   by   782   million   JPY   and   being   included   in   quarterly   profits  attributable  to  the  owners  of  the  parent  company.
② Cashflow  Condition  Cash   and   cash   equivalents   (hereinafter   “Funds”)   at   the   end   of   the   third   quarter   consolidated   fiscal   period   decreased   by  2,957  million  JPY  in  comparison  to  the  end  of  the  previous  consolidated  fiscal  year  and  is  5,144  million  JPY.
The  cashflow  conditions  in  the  consolidated  cumulative  third  quarter  and  the  causes  thereof  are  as  follows.  
(Cashflow  from  operating    activities)
The  Funds  earned  as  a  result  of  the  operating    activities  was  1,301  million  JPY  (income  of  832  million  JPY  for  the  same  period  one  year  ago).
Main  breakdown  of   cash   income:  1,623  million  JPY   in  quarterly   profit  and  1,061  million  JPY   in   depreciation  and  amortization  and  repayment  costs.  Main  breakdown  of  expenditure:  1,684  million  JPY  in  corporate  income  tax.
(Cashflow  from  investment  activities)
The  Funds  used  as  a  result  of  investment  activities  was  2,201  million  JPY  (expenses  of  261  million  JPY  for  the  same  period  one  year  ago).
Main  breakdown  of  cash  expenditure:  1,308  million  JPY  in  expenditure  due  to  the  acquisition  of  tangible  fixed  assets  and  investment  property  and  697  million  JPY  in  expenditure  due  to  acquisition  of  business.  
(Cashflow  from  financing  activities)
The  Funds  used  as  a  result  of  financing  activities  was  2,056  million  JPY  (expense  of  1,845  million  JPY  for  the  same  period  one  year  ago).
Main  breakdown  of  cash  expenditure:  857  million  JPY  in  dividend  payments  and  822  million  JPY  in  expenditure  to  repay  long-term  borrowings.
(3)  Explanation  on  future  forecast  information,  such  as  consolidated  earnings  forecast
On  the  basis  of  recent  performance  trends,  we  are  revising  the  consolidated  performance  forecast  announced  on  August  10,  2017  as  follows.
Revision  of  the  consolidated  performance  forecast  numerical  values  for  the  full  year  ending  June  2018  (From  July  1,  2017  to  June  30,  2018)
Current  term  profit  Sales  revenue

Operating  income

Gross  income

attributable  to   Net  basic  earnings  parent  company  per  sharestockholder

Previously  announced  forecast  (A)JPY

Million  JPY80,700Million  JPY5,400

Million  JPY5,330

Million  JPY3,310

199.94Current  revised  forecast  (B)80,700

4,050

4,030

2,000

120.51

Increase  or  decrease  amount  
(B-A)

-

△1350

△1300

△1310

-

-

△25.0

△24.4

△39.6

-

79,134

5,630

5,568

3,455

207.69

Increase  or  decrease  rate  (%)
(Reference)  Previous  fiscal  year  consolidated  performance(FY2016)(Reason  for  revisions)
In   the   automobile   related   business,   our   company   group’s   main   segment   of   our   group,   sales   revenue   has   generally   moved  according   to   our   forecasts,   however,   fuel   cost   rises   ,   depreciation   increase   due   to   an   increase   of   transportation   vehicle,  impact  of  the  finished  vehicle  inspection  issue,  and,  in  the  background,  the  lack  of  transportation  drivers,  work  style  reform,  and  compliance  strengthening  are  the  main  causes  of  a  decrease  in  profits  due  to  opportunity  loss.  We  have  reconsidered  the  consolidated  performance  forecast  for  the  full  year  because  it  is  anticipated  that  the  uncertain  trend  will  continue  even  during  the  fourth  quarter.
－

4 －2.  Summary  of  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  3rd  quarter  of  current  consolidated  fiscal  period(March  31,  2018)

8,101

5,144

10,195

11,580

532

843

195

129

719

836

19,745

18,534

9,064

10,603

2,499

2,887

3,628

3,542

927

984

1,837

1,893

83

120

222

228

18,262

20,25938,00738,793

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－

5 －End  of  previous  consolidated  fiscal  year
(30  June  2017)(Unit:  Million  yen)End  of  3rd  quarter  of  current  consolidated  fiscal  year
(March  31,  2018)

6,320

7,400

1,851

1,363

555

735

885

745

2,505

2,214

12,11812,458

358

347

2,339

1,955

2,078

1,895

331

339

107

177

5,215

4,715

17,334

17,174

3,390

3,390

3,271

3,296

△687

△687

283

416

14,403

15,185

20,661

21,60111

17

20,672

21,61938,00738,793Liabilities  and  equity
Liabilities
Current  liabilities
Trade  and  other  payables
Borrowings
Other  financial  liabilities
Income  taxes  payable  etc.
Other  current  liabilities
Total  current  liabilities
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－

6 －(2)  Summary  of  the  consolidated  quarterly  income  statement（Unit:  Million  yen）
Previous  3rd  quarter  of  the  Current  3rd  quarter  of  the  consolidated  fiscal  year
  (From  July  1,  2016
To  March  31,  2017)consolidated  fiscal  year  (From  July  1,  2017
To  March  31,  2018)

Sales  revenue

59,37559,596△49,070△50,316

10,3049,279△6,084△6,409

374

364

△60

△40

4,534

3,194

32

43

△58

△58

△15

2

4,492

3,182

△1,691△1,559

2,801

1,623

2,801

1,633

－

△10

2,801

1,623

Basic  quarterly  earnings  per  share  (yen)168.2998.44

Diluted  quarterly  earnings  per  share  (yen)168.02

98.35

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  for  using  the  equity  method
Profit  before  taxIncome  tax  expense
Quarterly  profit
Quarterly  profit  attributable  toOwners  of  the  parent  company
Non-controlling  interest:
Quarterly  profit

Quarterly  earnings  per  share  －7 －(3) Summary of the consolidated quarterly comprehensive income statement（Unit:  Million  yen）
Previous  3rd  quarter  of  the  consolidated  fiscal  year
(from  1  July  2016
to  31  March  2017)

Current  3rd  quarter  of  the  consolidated  fiscal  year
(from  1  July  2017
to  31  March  2018)

2,801

1,623

Re-measurement  of  defined  benefit  pension  plans

83

6

Total  items  that  will  not  be  reclassified  to  profit  and  loss

83

6

141

78

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

△13

55

Total  items  that  may  be  reclassified  to  profit  and  loss

127

133

211

140

3,013

1,763

3,013

1,773

－

△10

3,013

1,763

Quarterly  profit
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  other  comprehensive  income

Other  comprehensive  income  for  the  year,  net  of  taxTotal  quarterly  comprehensive  income
Total  quarterly  comprehensive  income  attributable  to:Owners  of  the  parent  company
Non-controlling  interest
Quarterly  Comprehensive  income－

8 －(4) Summary of the consolidated quarterly statement of changes in equity                Third  quarter  of  the  previous  fiscal  year    (From  July  1,  2016  to  March  31,  2017)
  (Unit:  Million  yen)
Equity  attributable  to  the  owner  of  the  parent  company
Components  of  other  capital

Capital  surplusCapitalTreasury  stock

Total  Equity  No  attributable  Changes  in  to  the  owner   controlling   Total  equity
ProfitConversion   fair  value  of  the  parent   interest
Remeasurement   Total  of  Surplusdifference   of availablecompany  of  defined   other  capital  of  foreign  for-sale  ownerbenefit  plan components
operations
financial  assetsBalance  on  July  1,  2016

3,390

3,249

△561

75

△53

-

21

11,64017,741

2,801

2,801

2,801

211

211

Quarterly  profit
Other  comprehensive  income
Comprehensive  income  for the  quarter--

Acquisition  of  treasury  stock

-

△13

141

83

211

△13

141

83

211

2,801

△0

Dividend  of  surplus△869

Stock  compensation  transaction

14

17

Transfer  from  other  capital  components  to  retained  earnings
Total  transaction  etc.  with  owner
Balance  on  31  March  2017

3,013

-

-

17,741

3,013

△0

△0

△869

△869

32

32
-

△83

△83

83

-

-

14

17

-

-

△83

△83

△785

△837

-

△837

3,390

3,264

△544

△67

217

-

149

13,656

19,916-

19,916This  consolidated  cumulative  third  quarter  (From  July  1,  2017  To  March  31,  2018)(Unit:  Million  yen)
Equity  attributable  to  the  owner  of  the  parent  company
Components  of  other  capital

Balance  on  July  1,  2017

CapitalCapital  surplusTreasury  
stock

3,390

3,271

△687

Changes  in  ProfitConversion  fair  value   Remeasurement   Total  of  Surplusdifference  of availableof  defined   other  capital  of foreign  for-sale  benefit  plan components
operations
financial  assets

364

△81

-

283

Quarterly  profit
Other  comprehensive  income
Comprehensive  income  for  the  year

-

-

-

55

78

6

140

55

78

6

140

Transaction  etc.  with    no  controlling  interest

Balance  at  31  March  2018

20,661

11

20,672

1,633

1,633

△10

1,623

140

140

1,773

△857

△857

△857

26

26

26

△1

△1

Transfer  from  other  capital  components  to  retained  earnings
Total  transaction  etc.  with  owner

14,403

1,633

Dividend  of  surplus
Stock  compensation  transaction.

Total  Equity  No  attributable  to  the  owner   controlling   Total  equityof  the  parent   interest
company  
owner

△6

△6

6

-

△10

16

1,763

14

-

-

24

-

-

-

△6

△6

△851

△833

16

△816

3,390

3,296

△687

△26

442

-

416

15,185

21,601

17

21,619－9 －(5) Summary of the consolidated quarterly statement of cash flows(Unit:  Million  yen)
Current  3rd  quarter  of  Previous  3rd  quarter  of  the  the  consolidated  fiscal  consolidated  fiscal  year
year  
(From  July  1,  2016
(From  July  1,  2017
To  March  31,  2017)
To  March  31,  2018)
Cash  flows  from  operating  activities:  Quarterly  profit
Depreciation  and  amortization  

2,801
814

1,623
1,061

Interest  income  and  dividends

△10

△10

50

51

15

△2

1,691
△2,337
16
1,222

1,559
△1,176
△310
526

△94

△166

△638
3,531
10
△50
△2,658
832

△128
3,027
10
△51
△1,684
1,301

△242
71
△225
△11
29
－
118

△1,308
25
△192
△15
40
△697
△53

△261

△2,201

Interest  expenses
Share  of  (profit)  loss  of  investments  accounted  for  using  the  equity  methodIncome  tax  expense(Increase)  decrease  in  trade  receivables  (△  indicates  increase)(Increase)  decrease  in  inventories  (△  indicates  increase)
Increase  (decrease)  in  trade  payables  (△  indicates  decrease)
Increase  (decrease)  in  retirement  benefit  liabilities  (△  indicates  decrease)
Other  Sub  total  Interest  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

－

10 －

(Unit:  Million  yen)rd  quarter  of  Current  3Previous  3rd  quarter  of  the  the  consolidated  fiscal  consolidated  fiscal  year
year    (From  July  1,  2016
  (From  July  1,  2017
To  March  31,  2017)
To  March  31,  2018)
Cash  flows  from  financing  activities
Net  change  in  short-term  borrowings  (△  indicates  decrease)

330

△140

Proceeds  from  long-term  borrowings

114

225

Repayment  of  long-term  borrowings

△982

△822

Repayment  of  finance  lease  liabilities

△437

△475

Dividends  paid

△869

△857

Proceeds  from  payments  from  non-controlling  shares－

14

Payments  due  to  treasury  stock  acquisition△0－△1,845△2,056△1,273△2,957

Cash  and  cash  equivalents  at  the  beginning  of  the  quarter

7,924

8,101

Cash  and  cash  equivalents  at  the  end  of  the  quarter

6,650

5,144

Net  cash  provided  by  (used  in)  financing  activities
Increase  (decrease)  in  cash  and  cash  equivalents,  net  (△  indicates  decrease)－11 －(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:
The  3rd  quarter  of  previous  consolidated  fiscal  year  (From  July  1,  2016  to  March  31,  2017)(Unit:  Million  yen)

Automotive   Human  related  resources  businessbusiness

Sales  revenue
Revenue  to  external  customers
Revenue  between  segments
Total
Segment  Profit  (Operating  Income)General  cargo  business

Total

Adjustment  amount  (Note)

Amount  recorded  on  quarterly  consolidated  financial  statements

44,041

11,1404,192

59,375－59,375

65

554

136

755

△755

－

44,107

11,695

4,328

60,130△755

59,375

4,650

484

787

5,922

△1,387

4,534(Note)  Adjustment  for  segment  profit  △1,387  million  includes  corporate  expenses  △1,387  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  3rd  quarter  of  the  consolidated  fiscal  year    (From  July  1,  2017  To  March  31,  2018)(Unit:  Million  yen)Amount  Automotive  related  Human  resources  General  cargo  

businessbusinessbusiness

Total

Adjustment  amount  (Note)

recorded  onquarterly
  consolidated  financial  statements

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

43,245

12,197

4,153

59,596－59,596

54

894

310

1,259

△1,259－43,30013,091

4,463

60,855△1,25959,596

3,543

391

757

4,693

△1,4983,194(Note)   Adjustment   of   segment   profit   △1,498   million   includes   corporate   expenses   △1,498   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.

－

12 －