Financial Results for the Fiscal Year Ended June 30, 2013
August 9, 2013
Company name: ZERO CO., LTD.
Code No: 9028
Tokyo Stock Exchange (Second Section)(URL http://www.zero-group.co.jp/)
Representative:
Yoshi Iwashita, President and CEO
Contact for inquiries:
Takeo Kitamura, Director,
Tel: 044-520-0106
General Manager, Corporate Planning Department
Date of Annual Shareholders’ Meeting:
September 26, 2013
Date to begin payment of dividend:
September 27, 2013
Date of financial report submission
September 26, 2013
Additional materials for the financial results for FY2012
None
Briefing session for the financial results for FY2012
None

1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2013
(From July 1, 2012 to June 30, 2013)(1) Consolidated Results(Figures less than one million yen are rounded down.)

Percentages shown below are the rates of increase or decrease compared with the same period of the previous year.
Sales

Operating income

Million yen%

Million yen

Ordinary income%

Million yen

Net income%

Million yen%

FY201260,073

4.7

1,600

-31.3

1,660

-29.2

716

-23.8

FY2011

57,385

8.9

2,329

87.0

2,346

81.6

940

103.8

(Note)

Comprehensive income:

FY2012760 million yen ( -30.8%)
FY2011 1,098 million yen (145.6%)

Earnings per
share-basic

Earnings per share-diluted

Net income toshareholder’s equity
ratio

Ordinary income tototal assets ratio

Operating income on
sales

Yen

Yen

％

％

％

FY201241.92

FY2011

55.03(Ref.)

Equity in net income of affiliates:

-

5.5

5.4

2.7

-

7.7

7.7

4.1

FY2012 : 26 million yen

FY2011: 18 million yen(2）Consolidated Financial Position
Total assets

Net assets

Shareholders’ equity
ratio

Net assets per share

Million yen

Million yen％

Yen

FY201231,096

13,33342.9

780.07FY201130,203

12,76142.3

746.59(Ref.)

Shareholders’ equity :As ofJune 30, 2013 : 13,333million yen

As of June 30, 2012 : 12,761 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

FY2012

2,236

-594

-1,5404,785

FY20112,786

61-2,8934,683

1

2. Dividends
Dividend per share(Recorddate)

At end of
1Q

FY2011FY2012
Forecast
for
FY2012At end of
2Q

At end of
3Q

At end of
4Q

Annual
total

Yen

Yen

Yen

Yen

Yen

-

4.00
4.00

-

7.00
4.40

11.00
8.40

-

4.00

-

6.50

10.50

Annualtotal
amount ofdividend
Million
yen
188
143

Dividend
payout ratio(Consolidated)

Dividend ratioof net assets(Consolidated)

%

%

20.0
20.0

1.5
1.1

19.9

3. Consolidated Forecasts for FY2013 (July 1, 2013 through June 30, 2014)
Percentages shown below for whole FY2013 are the rates of increase or decrease compared with the previous year.

Sales
Millionyen
Whole FY2013

62,000%
3.2

Operating income

Ordinary income

MillionMillion

yen
2,200

%
37.5

yen
2,250

%
35.5

Net income per share

Net income
Millionyen
900-basic
%

Yen

25.6

52.65

*Remarks(1) Changes in important subsidiaries during period (Transfer of particular subsidiary which involves the change of scopeof consolidation): N/A(2) Changes in accounting policies, procedure or notation method for documenting consolidated financial statements①Changes in accordance with the revision of accounting standards and others: Yes②Changes other than above: N/A③Changes in accounting estimates: Yes④Restatement of corrections: N/A(3) Number of issued shares (common shares)①Number of issued shares (including treasury stock) at the end of each period:
FY2012: 17,560,242
FY2011: 17,560,242②Number of repurchased shares at the end of each period:
FY2012: 467,711
FY2011: 467,656③Average number of shares issued during the fiscal year
FY2012: 17,092,553
FY2011: 17,092,620

2(Ref.) Unconsolidated Financial Results for the Fiscal Year Ended June 30, 2013
1. Unconsolidated Financial Results for the Fiscal Year Ended June 30, 2013 (From July 1, 2012 toJune 30, 2013)(1) Unconsolidated Results
Percentages shown below are the rates of increase or decrease compared with the same period of the previous year.
Sales
Operating income
Ordinary income
Net income
Million yen%

Million yen%

Million yen%

Million yen%

FY2012

46,655

3.4

889

-41.2

1,085

-34.3

554

-32.5

FY201145,121

10.2

1,514

82.8

1,652

83.3

821

125.8

Earnings per share–basicEarnings per share-diluted

FY201232.44 yen-

FY201148.05 yen-(2）Unconsolidated Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
share

Million yen

Million yen%

yen

FY2012

26,434

11,95245.2

669.27FY2011

25,491

11,56845.4

676.82(Ref.)

Shareholders’ equity:
As of June 30, 2013 : 11,952 million yen

As of June 30, 2012 : 11,568 million yen※Implementation status review procedure
This financial report is exempt from the review procedure based upon the Financial Instruments and Exchange Act. The
financial statements are under the review procedure at the time of disclosure of this report.
※Explanation regarding appropriate use of forecasts
Statements in this report relating to future matters such as earnings forecasts are based on the information presently
available. Actual results may differ from those forecasts depending on various factors.

3

1. Business Performance(1) Analysis Regarding Business Performance
1. Outline of Operations in FY2012
During current consolidated accounting period of the Company (hereinafter referred to as “the current term”),
Japanese economy has gradually recovered supported by demand associated with reconstruction after the Great East
Japan Earthquake, and has entered to the phase of weaker yen and higher stock price reflecting government’s policychange in economics and finances, resulting in the upward trend in business sentiment with the improvement ofcompany revenue mainly in exporting related business. However, the production activities are still in the severe
economical circumstances due to persistent severe employment and income situation, in addition to the negative
impacts from overseas such as debt problems in Europe, slowdowns in economic growth in emerging countries
including China.
In the automobile industry, the demand of domestic new car remained largely unchanged, 98.0% compared to thecorresponding term in the previous year (data from the Japan Automobile Manufacturers Association), consisting of
93.4% from October through June reversing upward trend of 114.2% from July through September. In regard to exports,
new car exports substantially decreased, 90.1% compared to the corresponding term in the previous year, owing to theaccelerated shift of production bases to overseas in response to the protracted strong yen, sluggish overseas economy
and the impact of worsening ties with China, in spite of the correction of yen appreciation since January. In the used
car market, the total sales of used cars increased, owing to the activated used car market by the trade-in cars increasereflecting to new car sales increase from July through September, resulted in 102.7 % compared to the corresponding
term in the previous year.
【Trends in automobile domestic sales】
Domestic sales volume (in units)

From July 2011 to Jun.2012

From July 2012 to Jun. 2013

Year-on-year

Domestic automakers *1

5,238,330

5,134,012

98.0%(Nissan Motor)*1(678,369)(640,883)(94.5%)

Foreign automakers*2

259,032

336,053113.9%

Passenger vehicles *3

3,914,599

3,954,993

101.0%

Mini vehicles*4

2,785,810

2,929,342

105.2%

Total of used vehicles

6,700,409

6,884,335

102.7%New vehicles

Used vehicles

De-registered vehicle*3

340,854

313,473

92.0%

Export volume (in units)

From July 2011 to Jun.2012

From July 2012 to Jun. 2013

Year-on-year

5,112,224

4,608,500

90.1%(Nissan Motor)*1(770,499)(572,434)(74.3%)

Used passenger vehicles*5

989,548

1,157,912

117.0%New vehicles
automakers *1ofdomestic4*1: Figures calculated from the statistical data of the Japan Automobile Manufacturers Association*2: Figures calculated from the statistical data of the Japan Automobile Importers' Association*3: Figures calculated from the statistical data of the Japan Automobile Dealers Association*4: Figures calculated from the statistical data of the Japan Mini Vehicles Association*5: Figures calculated from the statistical data of de-registration units for exportation of the Japan Automobile Dealers Association【Fuel retail price】
From July 2011 to Jun.2012

From July 2012 to Jun. 2013

Year-on-yearLight oil ( yen per liter) *6

128

129

100.8%

Regular gasoline ( yen per liter) *6

147

149

101.4%*6: Figures calculated from the statistical data of The Oil Information Center.

(Mainly light oil is used for the Company’s operations.)

Under these circumstances, our group sales of vehicle-transportation-related business, the Company’s major businesssegment, increased owing to the used-car transportation sales increase, pursuing the precisely customized
transportation-related services in addition to the continuing regional sales promotion activities, despite negative influence
by reduction of new car production of Nissan Motor Co., Ltd on our new car transportation sales. In regarding to generalcargo transportation business, severity of circumstances surrounding home electronic stores, our major customer,
contributed to worsen our sales compared to the corresponding term in the previous year. In the human resources businesswhere the market situation is uncertain, sales increased year on year thanks to the business expansion through strong sales
activities and strengthening sales operations, in addition to new business implementation, such as the dispatching businessto light-duty works, to newly developed areas.
As a result, sales in the current term were 60,073 million yen (104.7% compared to the corresponding term in theprevious year). Operating income was 1,600 million yen (68.7% compared to the corresponding term in the previous year),owing to the structural change of transportation model-mix, an increase of short-distance transportation and the cost
increase for the enhancement of car-carriers and drivers. Non-operating profit was 60 million yen (353.3% compared tothe corresponding term in the previous year) reducing interest expense by early repayment of long-term debts. As a result,ordinary income was 1,660 million yen (70.8% compared to the corresponding term in the previous year). Net income
totaled 716 million yen (76.2% compared to the corresponding term in the previous year), by restructuring costs forunprofitable businesses and loss on revaluation of investments in securities.

5

< Vehicle Related Business>
Domestic new car sales of Nissan Motor Co., Ltd., our major customer, was slow from October through December
showing the recovery from January, resulting in total sales of 640,883 units, (94.5% compared to the corresponding termin the previous year). Exporting new car sales of Nissan Motor Co., Ltd. decreased substantially owing to negative
impacts from overseas’ economic deceleration, resulting in total sales of 572,434 units (74.3% compared to thecorresponding term in the previous year).

(Data from the Japan Automotive Manufacturers Association)

As a result, sales of the Company from Nissan new car transportation business decreased. However, non- Nissan new car
and used car transportation business increased thanks to the severe status management at sales branches and the enhanced
sales and marketing promotion activities such as online ordering system and fulfilling of other transportation-related
services pursuing customer satisfactions. The maintenance business sales also increased owing to the capacity
strengthening of heavy- truck maintenance centers.
As a result, the sales totaled 44,787 million yen, 104.7% compared to the corresponding term in the previous year.
However, due to the structural change of transportation model-mix, the short- distance transportation increase and the cost
increase for the enhancement of car-carriers and drivers, segment profit resulted in 2,417 million yen, 82.5% compared tothe corresponding term in the previous year. The vehicle transportation business is under the severe circumstances due todownward trend of vehicle sales. However, the Company will strengthen its business structure which can promote stableprofit less influenced by the market demand by “transportation quality improvement by reducing transportation relay
points, shorter delivery period and transportation cost decrease” and “outsourcing-cost decrease by improving operating
ratio of in-house trailers”.

<General Cargo Transportation Business>
In this business segment, severity of circumstances surrounding home electronics stores, our major customer, remains
unchanged and the coal-cargo handling business was also affected by the decrease of demand owing to the operation
adjustment of the customer’s facility. As a result, sales in this segment totaled 6,236 million yen (92.1% compared withthe corresponding term in the previous year) and segment profit totaled 337million yen (55.6% compared to thecorresponding term in the previous year). The Company thoroughly reviewed the business structure in this term andmodified its business structure to achieve higher revenue by the closure of unprofitable business and eliminations andconsolidations of business facilities.

<Human Resources Business>
Despite the severe business environment surrounding of this segment that resulted in contract price discount requests,
reduction of working hours request and the cancellation of contract renewals from customers who were in the faceof stagnation of business activities, sales increased compared to the corresponding term of the previous year, 9,387

6

million yen (117.0% compared to the corresponding term in the previous year) thanks to the business expansion
through strong sales activities and strengthening sales operations, in addition to new business implementation, suchas the dispatching business to light-duty works, to newly developed areas. The segment profit totaled 434 million
yen (121.0% compared to the corresponding term in the previous year), achieved by pursuing profitable services.
As for unclassifiable operating expenses (company-wide expenses of administrative departments) and theamortization of goodwill, which are not included in the profit and loss by segment stated above, these wererecorded as “elimination”, which totaled 1,588 million yen.

2. Prospect for the Next Fiscal YearIn the automobile industry, although used car export business is showing improvement owing to a weaker yen reflecting
government’s policy change in economics and finances, the domestic car sales is continuously lower than thecorresponding term in the previous year. However, the business sentiment is improving in the expectation of effect of
economic policy change. In addition, by the rush of demand before the consumption-tax hike planned in FY2014, it isexpected to give positive effect on car sales as well as on other business activities.
The Company will pursue several activities to become tolerant to changes on the assumption of continual severe
economic circumstances for mid-term. Specifically, the Company will expand sales and improve the gross profit ratio by
continuous regional sales promotion activities, the business expansion of vehicle-related business such as maintenancebusiness and by pursuing transportation efficiency such as the decrease of transportation cost and the shorter delivery
period by reducing transportation relay points. The Company will strengthen its structure which is less influenced by themarket demand by reducing the fixed-cost for the better business efficiency focusing mainly on indirect business
operation improvement.
Although the future of the economy is still uncertain, the Company has posted the earnings forecast of FY2013 as
follows as a result of severe pursuance of above-mentioned activities for the revenue improvement.
(Reference)
Sales
Million yen

Operating income

Ordinary income

Profit of the term

Million yen

Million yen

Million yen

FY2012 Actual

60,073

1,600

1,660

716

FY2013 Forecast

62,000

2,200

2,250

900

Variance

103.2%

137.5%

135.5%

125.6%(2) Basic Policy for Profit-sharing and Dividend for This Term and the Following Term
Considering earning retention, expanding the Company’s business domain and strengthening its business structure, inorder to return its profit to the shareholders and for the openness of profit appropriation, the following profit-sharing
policy will be taken into account as a basic policy in the scope of divisible profit.

7

Consolidated Earnings perMore than 40 yen and up to
Up to 40 yen

More than 80 yen

Share(EPS)-diluted

80 yenAnnual dividend

8 yen

EPS x 20 %EPS x 25 %(Note) Particular profit or loss which is provided by irregular operating activities is subject to be calculated with the
exception of above policy.

Based on the above basic policy, the dividend will be as follows...
Dividend per share

Consolidated Earnings per
share(EPS)-diluted

Annual total

Second quarter end

Fiscal year end

FY201241.92 yen

8.40 yen

4 yen

4.40 yen

FY201352.65 yen

10.50 yen

4 yen

6.50/ yen(3)Risks for Businesses
Significant items which may cause risks relating to the Group’s businesses are as follows. Items which contain future
matters are judged by the Company based as of submission date of the financial results of fiscal 2012 and it is not assured
that the following statements cover all risks to the Company’s businesses and investment to its shares.

1. Degree of Dependence of Sales on Major Customer
Sales results from Nissan Motor Co., Ltd. (hereinafter called as Nissan Motor), the Company’s major customer, are as
follows. As the degree of dependence of sales on them is quite high, in case there are any changes to trade conditions
between the Company and them, its business climate can be negatively affected at a certain level.
FY2010FY2011FY2012Million yen

Percentage ingross sales

Million yen

Percentage ingross sales

Million yen

Percentage ingross sales

Nissan Motor

14,52927.6%

16,65429.0%

14,751

24.6%

Nissan Motor Group *1

18,53435.2%

21,26737.1%

20,10533.5%(Note) The above sales results from Nissan Motor Group include results from Nissan Motor, Autech Japan Inc. and all of
Nissan Auto Sales Co., Ltd. in Japan.
The Company has entered into a contract of “Memorandum of Understanding Regarding Strategic Partnership Contract”
with Nissan Motor in addition to those contracts such as “Vehicle Transportation Trust Agreement” and “Basic Service
Agreement”, which were concluded by respective operations such as vehicle transportation operation and new car
inspection operation. Those contracts stipulate that Nissan Motor entrust vehicle logistics related operations to theCompany continuously during the contract period on condition that the Company reaches the target by each evaluation
item set by them.

8

The current Memorandum of Understanding has been agreed in principle that it is to be validated continuingly until theend of March in 2014. The Company had successfully reached the target set by Nissan Motor since the contract was
concluded in 2003 till the end of March, 2013. It is prospected to continue to renew the contract after April, 2014 bymaking effort to improve the quality of operation.
However, in case that the Company is not able to continue to deal with Nissan Motor due to circumstances beyond its
control, the Group’s business climate can be negatively affected at a certain level.

2. Concentration of Profit in the Second Half of Fiscal YearIn the vehicle related business, new car transportation is affected by the tendency of which auto makers’ shipment volume
are to increase in March compared with the rest of the months. As for profitable private car transportation, the demand isinclined to increase in March, a moving season. Since it is predictable to have same concentration of businessperformance for the future, it is required to pay attention upon judging the Group’s business performance.
Sales (million yen)

27,49657,385

47.9%

52.1%

100.0%FY2012

28,79931,27360,073

3,319

4,078

7,397

591

1,009

1,600

47.9%

52.1%

100.0%

44.9%

55.1%

100.0%

36.9%

63.1%

100.0 b%

Total

3,649

Second
half
3,901

7,551

48.3%

51.7%

100.0%

Operating income (million yen)

Secondhalf
29,888First half
FY2011Gross profit (million yen)First half

Total

1,088

Second
half
1,240

2,329

46.7%

53.3%

100.0%First half

Total

2. Outline of Business GroupThe Group consists of the Company, 14 subsidiary companies and 2 affiliated companies, specializing in vehicle related
business, general cargo business and human resources business.
Business segment for each company is as follows.
Segment

Name of company

Vehicle related

ZERO, ZERO-TRANS, ZERO KYUSYU, TBM, Auto Carry,
Nissan Shizuoka Worknet, ZERO SCM LOGISTICS(BEIJING),
Utsunomiya Terminal Unyu, NPF Service, Eight Zero,
Guangzhou Eight Zero Auto Service

General cargo related

ZERO, KANDAKO KAIRIKU UNSO, KYUSO, Toyo Bussan

Human Resources

DRIVER STAFF, JAPAN RELIEF, ASSIST WORK

9

3. Management Policy
1) Basic Policy of the Company’s Management
The Group’s business philosophy is “Quality”, which is to provide safe and high quality transportation services to thecustomers and to contribute to the development for an affluent society by creating services more than expected by thecustomers. The base of its activities is to improve the quality of various services corresponding to the customer’s needs.
In addition, in order to secure the position in the logistics industry, the Company commits to become a business groupwith continuous trust of the public, customers and shareholders by expanding existing businesses, promoting entering into
a new business domain by M&A, adding corporate value through continuous growth and development.

2) Business Perspective
The vehicle transportation industry, the Group’s main business, is under severe circumstances interlocking with vehicle
sales market trend which is actually experiencing sales decrease. However, the Group commits to enhance its presence in
the industry and expand the market share by strengthening its sales power to provide higher quality service to thecustomers. Moreover, it is committed to transform to the solid corporate structure with stable profitability and continuous
growth by reducing transportation costs for enhancing transportation efficiency and minimizing indirect cost and fixed
cost by rationalization. The Group has its immediate management vision as to establish profit structure and business lines
which can be ranked in the top group in the Japanese logistics industry. And the Group’s long-term objective is to beamong top companies in Japan with its business line and profitable structure and to be a vigorous group with full ofcreativity where each employee addresses their job with hope.

3) Management Benchmark
It is committed to make its every best to achieve the target of consolidated sales of 100 billion yen and operating income
ratio of 5 % as the mid-and-long term benchmark by promoting the following managerial tasks proactively.

4) Activities
The Company will achieve the managerial objectives by pursuing the following challenges proactively.
1. Value-added transportation service
In order to strengthen its operation base, the Group is committed to provide, in addition to the existing transportation
service from makers’ plants to dealers, transportation of new cars among dealers, transportation of trade-in cars,
ownership change, registration, maintenance, auto body repair, painting, auction and export, packaging those services in
response to customers’ needs. Through these “high-value-added services” which can exceed customers’ expectations, theCompany will strengthen the capability of special transportations other than existing transportations to increase sales
accordingly.

102. Operation improvement of vehicle transportation
One of the Company’s top priorities of tasks is to improve transportation operations from order entry through carrier
allocation. The carrier allocation which was individually operated by each logistics center is going to be concentrated in“The allocation center” in 5 areas in Japan. The transportation efficiency will be improved by introducing “Logistics
Management Operation System”. The concentration of logistics center and the new system were installed to thedesignated areas other than East and Northern areas and will be installed completely to the remaining areas as soon as
possible. By streamlining transportation works by pursuing efficient and systematic carrier allocation and by improving
transportation quality, the Company will achieve higher customer satisfaction and cost deduction and profit increases.

3. Challenges to new business
The human resources business (providing for sure human resources to the society focusing on drivers and their education)
has steadily expanded through strengthening new customer development and new business implementation. The company
will enhance their education and will expand business to which required special licenses.
In the general cargo transportation business, the Company modified its business structure in this term to achieve higher
revenue by the closure of unprofitable business as well as eliminations and consolidations of business facilities. The

business in this segment will be expanded maintaining the higher profit ratio.

4. Enhancement of export business and entering into ASEAN market and other Asian market
The Company has established Export Sales Department and will expand reuse business such as used car export and parts
export in cooperation with the Company’s auto-action business named as “Car Selection”.
The Company has established ZERO SCM LOGISTICS (BEIJING) CO,.LTD. in August 2004 as the joint venture with
CITIC Logistics Co., Ltd., a group of top company in China, Sumitomo Corporation and Mitsui O.S.K. Lines, Ltd. toapply the know-how of vehicle transportation and maintenance which has been accumulated in the domestic market.
ZERO SCM LOGISTICS (BEIJING) CO., LTD., with new car transportation business and pre-delivery inspection
business, marked sales of 5,597 million yen and the current net profit of 107 million yen at the end of December, 2012.
The Company has also established Guangzhou Eight Zero Auto Service Co. Ltd., in January 2010, as the Joint venturewith Tan Chong International Group, listed company in Hong Kong, to start several vehicle–related businesses such as
used car sales, maintenance, inspection and auction. However, as the used car sales volume has decreased owing to theimplementation of car total volume control initiatives in Guangzhou since July, 2012, they are focusing on the vehicle
beauty business to strengthen the vehicle-related business.
Moreover, the Company has planned to enter into Asian countries especially into remarkably growing ASEAN countries
with vehicle transportation and vehicle-related business.

11

4. Consolidated Financial Statements(1) Consolidated Balance Sheet
As of June 30, 2012

(Unit: million yen)
As of June 30, 2013

AssetsCurrent assets
Cash and deposits

4,772

4,872

Notes and accounts receivable

6,575

6,868

73

86

Inventories
Goods

－

53

Deferred tax assets

341

271

Others966

985

Allowance for doubtful accounts

(39)

(41)

12,68913,096

Buildings and structures

6,027

6,049

Accumulated depreciation(2,512)(2,746)

Buildings and structures, net

3,514

3,302

Machinery, equipment and vehicles

1,221

1,173

Accumulated depreciation(1,037)(984)

Machinery, equipment and vehicles, net

183

188

Tools, furniture and fixtures

401

417

Accumulated depreciation

(345)

(350)

Tools, furniture and fixtures, net

56

66

Land

8,389

8,373

Lease assets

1,221

2,073

Accumulated depreciation

(422)

(663)

Lease assets, net

798

1,409

12,943

13,341

2,137

1,808

Total current assets
Fixed assets
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Goodwill
Lease assets

17

20

Others

268

407

2,423

2,236

Total intangible fixed assets
Investments and other assets
Investment securities

563

763

Long-term loans receivable

104

105

Deferred tax assets

742

777

Others

874

912

12

Allowance for doubtful accounts

(137)

(136)

Total investments and other assets

2,147

2,422

17,51418,00030,20331,096

As of June 30, 2012

As of June 30, 2013

3,221

3,430

Total fixed assets
Total assets

Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable

700

750

1,357

1,607

Lease obligations

216

294

Accrued expenses

Long-term loans payable within one year

1,344

1,604

Income taxes payable

380

574

Accrued consumption taxes

281

272

Deposits received

248

256

Allowance for bonus

409

406

Others

495

548

8,654

9,745

3,424

2,041

Lease obligations

683

1,205

Deferred tax liabilities

76

76

Deferred tax liabilities for revaluation

1,088

1,088

Allowance for retirement benefits

2,992

3,029

379

427

Total current liabilities
Fixed liabilities
Long-term loans payable

Allowance for retirement benefits for directors
Asset retirement obligation

41

41

Others

100

106

8,787

8,016

17,442

17,762

Capital stock

3,390

3,390

Capital surplus

3,204

3,204

Retained earnings

7,043

7,571

Treasury stock

(152)

(152)

Total shareholders’ equity

13,48514,014

(5)

15

(705)

(705)

Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Net unrealized loss on securities
Revaluation reserve for land13

Foreign currency translation adjustment

(13)

8

Total accumulated other comprehensive
incomeTotal net assets

(724)

(681)

12,761

13,333

Total liabilities and net assets

30,20331,096(2) Consolidated Income Statement and Consolidated Comprehensive Income Statement(Consolidated Income Statement)
FY11 ended June 30,
2012
57,385

Sales(Unit: million yen)
FY12 ended June 30,
2013
60,073

Cost of sales

49,83352,675Gross profit

7,551

7,397

Selling, general and administrative expenses

5,222

5,797

Operating income

2,329

1,600

Interest income

43

Dividend income

55

Fix asset rental income

18

19

Receivable commission

58

71

Equity in earnings of affiliates

18

26

Others35

44

Total non-operating income

139

169

107

86

Disposal loss of inventory goods

2-

Others13

23

Total non-operating expenses

122

109

2,346

1,660

Gain on sale of fixed assets

5

21

Total extraordinary income

521Non-operating income

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on disposal of fixed assets

1040Loss on retirement of fixed assets

918

Impairment loss

27

16

loss on revaluation of investments in securities－

46

Retirement benefit expenses

54－

Loss from Restructuring

－

85

14

Others29

8

Total extraordinary losses

224

175

Net income before tax adjustments

2,127

1,507

Income taxes

480

767

Income taxes adjustment

705

23

1,186

790

Net income before adjustment minority interests

940

716

Net income

940

716

Total income taxes(Consolidated Comprehensive Income Statement)

Net income before adjustment minority interests

FY11 ended June30, 2012
940(Unit: million yen)
FY12 ended June30, 2013
716

Other comprehensive income
Net unrealized gains(loss) on securities

3

21

158

－

Land revaluation difference
Equity of equity-method affiliate

(3)

22

Total other comprehensive income(loss)

157

43

1,098

760

1,098

760

Comprehensive income(Breakdown)
Parent company portion of comprehensive income(3) Consolidated Statements of Changes in Net Assets
FY11 ended June30, 2012(Unit: million yen)
FY12 ended June30, 2013

Shareholder’s equity
Capital stock
Balance at the end of previous period

3,390

3,390

－

－

3,390

3,390

3,204

3,204

－

－

3,204

3,204

Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period15Retained earnings
Balance at the end of previous period

6,280

7,043

Dividends from surplus

(136)

(188)

Net income

940

716

Change of scope of equity method－－

Land revaluation difference

(40)

－

Total changes of items during the period

763

528

7,043

7,571

(152)

(152)

Purchase of treasury stock

(0)

(0)

Total changes of items during the period

(0)

(0)

(152)

(152)

12,722

13,485

Dividends from surplus

(136)

(188)

Net income

940

716

Land revaluation differences

(40)

－

Changes of items during the period

Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total shareholder’s equity
Balance at the end of previous period
Changes of items during the period

Purchase of treasury stock

(0)

(0)

Total changes of items during the period

763

528

13,48514,014(9)(5)

Net changes of items other than shareholder’sEquityTotal changes of items during the period

3

21

3

21

Balance at the end of current period

(5)

15

(904)

(705)

199

－

199
(705)

－
(705)

(9)

(13)

Balance at the end of current period
Accumulated other comprehensive income
Net unrealized gains(loss) on securities
Balance at the end of previous period
Changes of items during the period

Revaluation reserve for land
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholder’sEquityTotal changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period

16Changes of items during the period
Net changes of items other than shareholder’sEquityTotal changes of items during the period

(3)

22

(3)

22

(13)

8

(923)

(724)

Net changes of items other than shareholder’sEquityTotal changes of items during the period

198

43

198

43

Balance at the end of current period

(724)

(681)

11,79912,761Dividends from surplus

(136)

(188)

Net income(loss)

940

716

Land revaluation differences

(40)

－

Purchase of treasury stock

(0)

(0)

Net changes of items other than shareholder’sequityTotal changes of items during the period

198

43

961

572

12,761

13,333

Balance at the end of current period
Total accumulated other comprehensive income
Balance at the end of previous period
Changes of items during the period

Total net assets
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period(4) Consolidated Cash Flow Statement
FY11 ended June30, 2012(Unit: million yen)
FY12 ended June30, 2013

Net cash provided by operating activities
Net income before tax adjustments

2,127

1,507

Depreciation

607

742

Depreciation of goodwill

328

328

Increase in allowance for doubtful accounts

130Increase (decrease) in allowance for bonus

17

(2)

Decrease in allowance for retirement benefits

(51)

37

Increase in allowance for director’s retirement benefits

32

47

Increase (decrease) in disaster loss

(28)

－

Interest and dividends income

(10)

(8)

Interest expenses

107

86

Loss on revaluation of golf membership－

46

Loss (gain) on sale and retirement of fixed assets

108

(3)

Impairment loss

27

16

17

Loss on investment of equity method

(18)

(26)

Decrease in notes and accounts receivable

(756)

(293)

6

(65)

Decrease in other current assets

(73)

(54)

Increase in notes and accounts payable

321

209

Increase (decrease) in other current liabilities

288

310

Increase (decrease) in accrued consumption taxes

55

(8)

Others(1)

22

Subtotal

3,101

2,891

9

8

Increase in inventories

Interest and dividends received
Interest paid

(105)

(86)

Income taxes paid

(218)

(576)

Net cash used in operating activities

2,786

2,236

(10)

(1)

Net cash used in investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits

149

2

Payments for purchase of tangible fixed assets

(234)

(219)

Proceeds from sale of tangible fixed assets

262

40

Payments for purchase of intangible fixed assets

(146)

(228)

Payments for purchase of investment securities

－

(165)

Proceeds from sales and redemption of investment
securities
Payments for loans implementation

13

－

(102)

(52)

Proceeds from collection of loans receivable

162

101

Others(32)(72)

Net cash used in investing activities

61

(594)

Payments of short-term loans payable－

50

Proceeds from long-term loans payable

650

450

Net cash used in financing activities

Payments of long-term loans repayments(3,258)(1,582)

Payments for purchase of treasury stock

(0)

(0)

Payment of lease obligation repayments

(149)

(269)

Cash dividends paid

(136)

(187)

Net cash used in financing activities(2,893)(1,540)Net decrease in cash and cash equivalents

(45)

101

Cash and cash equivalents at beginning of period

4,729

4,683

Cash and cash equivalents at end of period

4,683

4,785

18

1. Sales and profit for each reportable segment for the first nine months of FY2011 (from July 1, 2011 to June 30, 2012)

Vehicletransportationrelated

General cargotransportation

Human
resources(Unit: million yen)
Elimination and Consolidated
Corporate(Note*2)(Note*1)

Total

Sales
Sales of42,736
6,748
7,900
57,385externalcustomers
Internal
46
23
2121
191
(191)
sales between
business segments ortransfer
Total
42,783
6,771
8,021
57,577(191)
Operating income
2,929
606
358
3,895
(1,566)
Assets
14,3596,642
2,203
23,205
6,997
Other items
Depreciation
315
228
18
562
45
Increase of
tangible/intangible
716
44
15
775
59
fixed assets(Notes)*1. The elimination is as follows.
(1) Elimination of -1,566 million yen of Operating income includes corporate expense of -1,239 million yen,
goodwill amortization of -328 million yen and elimination among the segments of 2 million yen. The corporate
expense is the expense of the administrative departments which do not belong to any reported segment.
(2)Elimination of segment assets is the company’s assets which are not allocated to any reported segment.
(3)Elimination of other items is the company’s assets which are not allocated to any reported segment.
*2. Segment profit is eliminated with the operating profit of consolidated financial statements.

57,385-57,3852,329
30,203607
835

2. Sales and profit for each reportable segment for the first nine months of FY2012 (from July 1, 2012 to June 30, 2013)

Vehicletransportationrelated
Sales
Sales forexternalcustomers
Internal
sales between
business segments ortransfer
Total
Operating income
AssetsOther items
Depreciation
Increase of
tangible/intangible
fixed assets

General cargotransportation

Human
resources(Unit: million yen)
Elimination and Consolidated
Corporate(Note *2)
(Note *1)

Total

44,759

6,196

9,117

60,073-60,073

27

40

269

338

(338)

-

44,787
2,417

6,236
337

9,387
434

60,411
3,188(338)(1,588)60,073
1,600

15,245

6,452

2,339

24,0387,057

31,096

478

217

17

712

29

742

1058

190

53

1,303

86

1,390

19

(Notes)*1. The elimination is as follows.
(1) Elimination of -1,588 million yen of Operating income includes corporate expense of -1,260 million yen,
goodwill amortization of -328 million yen and elimination among the segments of 1 million yen. The corporate
expense is the expense of the administrative departments which do not belong to any reported segment.
(2)Elimination of segment assets is the company’s assets which are not allocated to any reported segment.
(3)Elimination of other items is the company’s assets which are not allocated to any reported segment.
*2. Segment profit is eliminated with the operating profit of consolidated financial statements.

End of document20