Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2019 [Based on IFRS]
August 8, 2019
Company name: ZERO CO., LTD.
Stock Exchange Listing:Tokyo
Stock code:
9028
URL http://www.zero-group.co.jp/
Representative:
President & CEO
Takeo Kitamura
Inquiries:
Director and Manager of Group Strategies Headquarters
Toshihiro Takahashi
TEL 044-520-0106
Scheduled Date of Ordinary General meeting of Shareholders:
September 26, 2019 Scheduled date to commence dividend payments: September 27, 2019
Scheduled Date for the Submission of Annual Securities Report: September 27, 2019
Preparation of supplementary material on financial results:
No
Holding of financial results meeting:Yes (for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the fiscal year ended June 30, 2019 (From July 1, 2018 to June 30, 2019)(1) Consolidated operating results (cumulative)
Sales revenue

FY2018FY2017(Percentages indicate year-on-year changes)

Operating income

Profit before tax

Net Income

Profit attributable toequity shareholdersof the company

Total comprehensive
income of the fiscal
year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

90,22881,376

10.9
2.8

3,305
4,116

∆19.7
∆26.9

3,294
4,094

∆19.5
∆26.5

1,663
2,112

∆21.3
∆38.8

1,658
2,129

∆22.1
∆38.4

1,264
2,254

∆43.9
∆42.1

Basic earnings of thisyear per share

Diluted earnings of this year
per share

Yen

Yen

Total capital profit ratio
before tax

Profit ratio attributable toequity shareholders of thecompany%

Sales revenue operating
profit ratio%%

FY2018

99.74

99.58

7.3

8.5

3.7

FY2017128.33128.18

10.0

10.7

5.1

(Reference) Investment gain / loss through equity method;

FY2018: 32 million yen,

FY2017: 7 million yen(2) Consolidated financial position
Total assets

Total capital

Equity attributable to equity
shareholders of thecompany

Equity ratio attributable
to equity shareholders of
the company

Equity per share
attributable to equity
shareholders of thecompany

Millions of yen

Millions of yen

Millions of yen%

Yen

FY201839,55423,072

23,05658.3

1,386.68

FY201738,29022,11922,10857.7

1,332.15(3) Consolidated cash flow position
Cash flow from operating
activities
Million yen
FY2018
1,033

Cash flow from investing
activities
Million yen△2,402△438

Cash and cash equivalents at endof yearMillion yen
3,465

3,015

△2,890△2,9535,273

FY2017

Cash flow from financing
activities
Million yen

2. Cash dividends
Total dividends(Total)Annual dividends per share
1st quarterend

2nd quarterend

Yen

3rd quarterend

Yen

Fiscal yearend

Yen

Total

Dividend
payout ratio(consolidated)

Equity dividend
ratio attributable
to equity
shareholders of
the company(consolidated)

Yen

Yen

Million yen%%

FY2017FY2018

-----

15.00
4.00

-----

17.10
20.90

32.10
24.90

541
419

25.0
25.0

2.5
1.8

FY2019 (forecast)

---

15.00

---

19.60

34.60

---

3. Forecast of consolidated financial results for the year ending June 30, 2020 (From July 1, 2019 to June 30, 2020)
Sales revenue
Full year

Millions of yen
95,000Operating income%
5.3

Millions of yen
4,000(Percentages indicate year-on-year changes)
Profit attributable to equity
Basic earnings per
shareholders of the company
share

Profit before tax%
21.0

Millions of yen
3,980

%
20.8

Millions of yen
2,300

%
38.7

Yen
138.33

ø(Note)(1) Changes in significant subsidiary companies during the current fiscal year (Changes in the specific subsidiary companies following changes in the scope of
consolidation):No
New ¾ Co. (Company name),
Exclusions ¾ 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 reasons other than ①
 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 the period
 Average number of shares during the period(total up to this year)

:
:

Yes
No

:

No

FY201817,560,242 shares

FY2017

17,560,242 shares

FY2018FY20181,030,369 shares
16,626,874 shares

FY2017FY20171,030,367 shares
16,595,875 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended June 30, 2019 (From July 1, 2018 to June 30, 2019)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)

Sales revenue

FY2018FY2017

Operating income

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen

56,26653,533

5.1
1.3

3,132
4,363

∆28.2
10.3

1,809
4,954

Basic earnings per share

Net Income% Millions of yen
∆63.5
9.1

957
3,326

%
∆71.2
7.8

Diluted earnings per share

FY2018

Yen
57.92

Yen
-

FY2017201.26-(2) Non-consolidated financial position
Total assets
Net assets
Million yen
Million yen
FY201834,595
21,339FY201734,50420,890(Reference) Company’s Equity
FY2018: 21,339 million yen

Equity ratio
%
61.7
60.5
FY2017: 20,890 million yen

Net assets per shareyen
1,290.95
1,263.81

øEarnings summary is not within the scope of audit by a certified public accountant or auditorøExplanation of the proper use of financial results forecast and other notes
1.
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 and international markets or exchange rates fluctuation.
2.
At our company, business management is conducted on a consolidated basis; therefore, individual business results forecasts are not created.
3.
Our company is scheduled to hold an explanatory meeting for analysts on August 26, 2019. The accounts explanatory documents to be distributed during the
explanatory meeting will promptly be posted on our company’s website after the meeting.

o Attached Documents – Table of Contents
1.

Summary of operating results, etc.

2(1) Summary of operating results of the current fiscal year2(2) Summary of the financial status of the current fiscal year3(3) Summary of the cash flow of the current fiscal year

4(4) Future forecast

42.

Basic view regarding the selection of accounting standards

53.

Summary of the consolidated financial statements and major notes

6(1) Consolidated statement of financial position

6(2) Consolidated statement of profit or loss

8(3) Consolidated statement of profit or loss and other comprehensive income

9(4) Consolidated statement of changes in equity

10(5) Consolidated statement of cash flow

11(6) Notes on consolidated financial statements

13(Notes on going concern assumption)

13(Changes in accounting policy)

13(Segment information)

14(Information per share)

16(Major subsequent events)

17

－ 1 －

1.

Summary of operating results, etc.
(1) Summary of operating results of the current fiscal year
Japan’s economy during this accounting period of consolidation continued to recover gradually; personal
consumption is also being improved with steady employment and income environment, but things remains unclear
due to the uncertainty of the foreign economic situation, beginning with the trade problem in the US and China.
In the automobile industry, the total number of new vehicles sold was increased at 102.1% (statistical data of
the Japan Automobile Manufacturers Association) as compared to the previous consolidated accounting period(hereinafter referred to as the same period from the previous year) due to the sales of new models of light vehicles
favorably increased and resolution of the finished vehicle inspection issue. The number of used registered vehicles
has also increased compared to the same period from the previous year as was the case in the number of newvehicles sold.
While promoting strategic and flexible sales activity and business operations in response to changes in themarket environment in each of the business segments, our group is working to develop new businesses focusing
on next generation mobility, increasing foreign visitors to Japan, and the growth of the foreign economy to prepare
for the shrinkage of the domestic automobile market. Also, we are continuing our efforts to strengthen groupsynergy, transport reforms, efforts to strengthen compliance, and reform the work style; however, the businessenvironment is severe due to the insufficient number of drivers caused by shortages of labor supply and demandin the logistics industry as well as the increase in wages and recruitment cost, high fuel prices, and the increased
cost relative to compliance response such as compliance vehicle restrictions and restrictions on roads.
As a result, the business results of our group for this fiscal year are as follows: sales revenue of 90,228 million
yen (110.9% compared to the same period from the previous year) and operating profit of 3,305 million yen(80.3% compared to the same period from the previous year). Also, the profit before taxes was 3,294 million yen(80.5% compared to the same period from the previous year), and the profit of this fiscal year attributable to theequity shareholders of the company was 1,658 million yen (77.9% compared to the same period from the previousyear).
[Number of units related to domestic distribution of automobiles]
Domestic Sale
New vehicles
Domestic*1
manufacturer(out of this, Nissan*1
Motor)
Foreign manufacturer *2
New vehicle total

Units: vehicles
Compared to theprevious year

July of 2017 to June of 2018

July of 2018 to June of 2019

4,877,208

4,986,398

102.2%(583,046)(592,778)(101.7%)

306,894306,61299.9%

5,184,102

5,293,010

102.1%

Used vehicles
Registered vehicles*3

3,821,606

3,831,487

100.3%

Light vehicles*4

3,073,852

3,123,533

101.6%

6,895,458

6,955,020

100.9%

220,759

227,682

103.1%

July of 2017 to June of 2018

July of 2018 to June of 2019

Compared to theprevious year*1

4,858,533

4,841,404

99.6%

*5

1,367,195

1,462,583

107.0%

Total used vehicles
Vehicles permanently
deleted*3

ExportNew vehicles ofdomestic
manufacturers
Used passenger
vehicles*1 Calculated from Japan Automobile Industry Association statistics*2 Calculated from Japan Automobile Importers’ Association
statistics*3 Calculated from Japan Automobile Dealers Association statistics*4 Calculated from Japan Mini Vehicles
Association statistics*5 Trial calculated from the number of export deleted registered vehicles in the Japan Automobile Dealers
Association statistics[Retail price of fuel]Diesel fuel

*6

118.7

129.9

Units: yen / L
Compared to theprevious year
109.4%

Regular gasoline

*6

140.2

150.0

107.0%

National average

July of 2017 to June of 2018

July of 2018 to June of 2019

*6 Calculated from the statistics by the Agency of Natural Resources and Energy (the fuel used for transport by our company is mainly
diesel fuel)－ 2 －The segment business results are as follows.
<<Automobile related businesses>>
For vehicle transportation, which is the core business, in aiming to expand transactions related to the shipmentof new and used vehicles in Japan, advancing sales activities in response to the oligopolization of used car sales
by new car dealers and major used car dealerships resulted in an increase for the business sector. Furthermore,
export of used vehicles increased significantly due to reconstruction of the system aiming to review the sales
strategy which as a result increased the overall revenue in the automobile related industry.
With the completion of establishing regional block companies in the vehicle transportation, restructuring of thetransportation system has been accelerated including cooperating companies, aiming to achieve optimal operationof the distribution network throughout Japan and are striving for thorough cost management. Meanwhile, the costs
were prepaid until the second quarter under circumstances involving increased labor costs / employment costs
caused by an insufficient number of drivers, increased fuel prices, expanded vehicle costs to handle deteriorationand increase the number of trucks, in addition to the decreased load ratio due to compliance with vehicle restriction
laws, the promotion of work style reforms to reduce total working hours and increased cost accompanying therelocation of bases to construct an effective distribution system, the price increase of vehicle transportation charge
was executed from January and was able to fill in the declining profit until the second quarter, then automobilerelated businesses as a whole saw an increase in profit.
As a result, the overall sales revenue in automobile-related industries was 65,766 million yen (110.5% compared tothe same period from the previous year), and the segment profit was 4,894 million yen (105.1% compared to the same
period from the previous year).
<<Human resource business>>
With the labor demand being tightened accompanying the economic recovery, the difficulty in employment in large
cities and the increase in personnel expenses have become serious matters; therefore, the Group has promoteda regional shift from the major cities and reinforcement of the sales system, and has reviewed its product portfolio
strategically and continuously. In addition to the fact that existing services such as pick up service and driver dispatch
transitioning steadily, participation in the newly entered airport business has increased revenues but profit decreased
due to the temporary increase of recruiting advertisement cost in the second quarter.
As a result, the overall sales revenue in human resources was 18,527 million yen (112.4% compared to the same
period from the previous year), and the segment profit was 313 million yen (59.2% compared to the same period
from the previous year).
<<General cargo business>>
The revenue of the transportation / warehouse business has increased with the incorporation of cargo that was
shifted to land transportation due to the disaster in the West Japan region in addition to the expansion of transactions
with existing customers and acquisition of new customers through 3PL. The revenue of port cargo handling businessdecreased due to a decrease in automobile cargo handling and coal cargo handling, but the revenue for the generalcargo business has increased overall with the launch of CKD business which contributed to the increase of sales. In
addition to the decreased revenue in the cargo handling business, the initial cost incurred in the newly entered CKD
business and the loss related to the business launch have caused significantly decreased revenue in the general cargobusiness. As a result, the overall sales revenue in the general cargo business was 5,935 million yen (110.5% comparedto the same period from the previous year), and the segment profit was 150 million yen (17.1% compared to thesame period from the previous year).
Also, company expenses not included in the profit and loss categorized by the segments above (expenses
related to our company’s management divisions) were calculated in the item “adjustment amount” as indicated in“Segment Information” in “3. Summary of the consolidated financial statements and major notes, (6) Notes
regarding the consolidated financial statements” and were 2,053 million yen.
(2) Summary of the financial status of the current fiscal year
Status of assets, liabilities, and equity(Assets)
Current assets increased 429 million yen (2.4%) compared to the end of the previous accounting periodof consolidation and were 18,177 million yen.
This was mainly because, while cash and cash equivalents decreased by 1,807 million yen, the operatingreceivables and other receivables increased by 2,121 million yen, on the other hand.
Non-current assets increased by 834 million yen (4.1%) compared to the end of the previous
consolidated fiscal year to 21,377 million yen.
This was mainly due to a decrease of 314 million yen in other financial assets, while tangible fixed assets
increased 1,104 million yen.
As a result, total assets increased by 1,264 million yen (3.3%) compared to the end of the previous
consolidated fiscal year to 39,554 million yen.
(Liabilities)
Current liabilities increased 873 million yen (7.5%) compared to the end of the previous consolidated
fiscal year to 12,561 million yen.
This was mainly due to unpaid corporate income tax decreasing by 394 million yen, while borrowings
increasing by 700 million yen and the trade payables and other payables increasing by 540 million yen.
Non-current liabilities decreased by 562 million yen (12.5%) compared to the end of the previous
consolidated fiscal year to 3,920 million yen.
－ 3 －This was mainly due to a decrease of 329 million yen in other financial liabilities as well as a decreaseof 113 million yen in liabilities related to retirement benefits.
As a result, total liabilities increased by 310 million yen (1.9%) compared to the end of the previous
consolidated fiscal year to 16,481 million yen.
(Equity)
The equity increased by 953 million yen (4.3%) compared to the end of the previous consolidated fiscal
year to 23,072 million yen.
This is mainly because retained earnings increased by 1,071 million yen due to the recording of the
profits from this fiscal year.
(3) Summary of the cash flow of the current fiscal year
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the consolidated accounting
year decreased by 1,807 million yen compared to the end of the previous consolidated accounting year to3,465 million yen.
Each cash flow status category during the consolidated accounting period and their causes are as follows.
(Cash flow through operating activities)
Funds obtained as a result of operating activities were 1,033 million yen (there was an income of
3,015 million yen during the previous consolidated accounting year).
The main factors of the increase in funds were 1,708 million yen for depreciation of non-cash expenses
and amortization expenses; the profit from this fiscal year was 1,663 million yen, the main factor for thedecrease in funds was for increase in trade receivables of 2,205 million and 1,932 million yen for paymentof corporate income.
(Cashflow through investment activities)
Net cash used in investment activities was 2,402 million yen (expenditures of 2,890 million yen during
the previous consolidated accounting year).
The main itemization breakdown for expenditures was 2,195 million yen for acquisition of tangible fixed
assets.
(Cashflow through financial activities)
Funds used as a result of financing activities were 438 million yen (2,953 million yen used in the previous
consolidated accounting year).
The main itemization breakdown for expenditures were payment of 563 million yen for finance leaseand 348 million yen for dividends, and expenditures of 226 million yen due to repayment of long-term loans.
(4) Future forecast
In the following consolidated accounting year, it is forecasted that the economy in Japan will continue to gradually
recover due to increased consumption with the Tokyo Olympics coming up, although there are some concerns
regarding the trend of the foreign economy such as trade problems.
However, in the automobile industry, the concern for market shrinkage caused by a decrease in the number ofpeople with driver’s licenses due to decreased population or not using vehicles, lengthening in the average usage
period of vehicles due to improvements in their durability, decrease in the number of vehicles being possessed dueto the popularization of sharing services, cannot be eliminated.
Moreover, in the logistics industry, it is assumed that the strict operating environment will continue due to driverinsufficiency becoming serious with the demand of tightened labor conditions, promotion of labor reform aiming
to inhibit long-term labor, concern about mid to long term increases in fuel prices, compliance with the cabinet
order on vehicle restrictions and limitations in argo handling on the road.
Under these circumstances, our group will promote operating activities utilizing the local characteristics of locations
around the Japan as well as optimization of the distribution system and will develop new businesses focusing on
expanding foreign business, entering the automobile industry, and keeping the next-generation mobility society inview.
Also, establishment of regional block companies in the vehicle transportation business as a part of reconstructing
the business foundation was completed; therefore, improvement of transportation efficiency and strengthening
the system in order to increase profit was promoted after ascertaining the available transportation capacity within
the group, and optimizing the infrastructures and resources within the group including those of cooperatingcompanies to maximize the synergistic group effect.
In addition to implementing a revision of the transportation fee in January of 2019 under a strict distribution
industry environment, a contract with Mitsubishi Motors Corporation to transport completed vehicles within Japan
will be started in the middle of August. On the other hand, the initial costs of the CKD business expect to be incurred
continuously. The business forecast for June of 2020 with the above included is as follows: sales profit at 95 billion
yen, operating profit at 4,000 million yen, profit before taxes at 3,980 million yen, and profit from this term
attributed to shareholders of the parent company is at 2,300 million yen.
－ 4 －

*The abovementioned forecast was deemed logical by our company based on the information obtainable at thispoint, and may be different compared to the actual business results.
2. Basic view related to the selection of accounting standards
Our group has aimed to improve the efficiency and quality of operations through unification of the financial report
standards based on the status of progress of foreign business development and the policy of Tan ChongInternational Limited, our parent company, and also have voluntarily applied the International AccountingStandards (IFRS) from the consolidated financial statements in the asset securities report in June of 2016 (The70th term) for the purpose of improving the international comparability of financial information in the capital market.

－ 5 －3. Summary of the consolidated financial statements and major notes(1) Consolidated statement of financial position(Units: million yen)
End of the previous
End of the consolidated
consolidated accounting year
accounting year (June 30, 2019)(June 30, 2018)
AssetsCurrent assets
Cash and cash equivalents

5,273

3,465

Trade and other receivables

11,16013,281Inventories

512

922

Other financial assets

131

4

Other current assets

670

503

17,74818,177

Tangible fixed assets

10,827

11,931

Goodwill and intangible assets

2,865

2,803

Investment properties

3,511

3,393

964

986

1,943

1,629

Other non-current assets

122

291

Deferred tax assets

307

341

Total non-current assets

20,542

21,377

Total assets

38,29039,554

Total current assets
Non-current assets

Investment accounting processed with equity
methodOther financial assets－ 6 －(Units: million yen)
End of the previous
consolidated accounting year
(June 30, 2018)

End of the consolidated
accounting year (June 30,
2019)

Liabilities and Equity
Liabilities
Current liabilities
Trade and other payable

6,436

6,976

Loans

702

1,283

Other financial liabilities

723

720

Income taxes payable, etc.

1,296

901

Other current liabilities

2,530

2,679

11,687

12,561

262

154

Other financial liabilities

1,849

1,519

Retirement benefits liabilities

1,838

1,725

Other non-current liabilities

313

306

Deferred tax liabilities

219

214

Total non-current liabilities

4,483

3,920

Total liabilities

16,170

16,481

Capital

3,390

3,390

Capital surplus

3,305

3,362

Treasury stock

△687

△687

416

236

15,682

16,754

22,10823,056

Non-controlling interest

11

16

Total Equity

22,11923,072

Total liabilities and equity

38,29039,554

Total current liabilities
Non-current liabilities
Loans

EquityOther component of funds
Retained earnings
Total equity attributable to the equity
shareholders of the company

－ 7 －

(2)

Consolidated statement of profit or loss
(Units: million yen)Previous consolidated
accounting year
(from July 1, 2017
to June 30, 2018)

Current consolidated accounting
year(from July 1, 2018
to June 30, 2019)

Sales revenue

81,37690,228

Cost of sales△68,994△78,099

Gross Profit

12,381

12,129△8,590△9,302Other income

436

606

Other expenses

△111

△127

4,116

3,305

44

13

△73

△57

7

32

4,094

3,294

△1,981△1,630

2,112

1,663

Equity shareholders of the parent company

2,129

1,658

Non-controlling interest△16

5Profits of the year

2,112

1,663

Basic earnings per share (yen)128.33

99.74

Diluted earnings per share (yen)128.18

99.58

Selling, general expenses

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

Attribution of the profits of the year:

Earnings per share

－ 8 －

(3)

Consolidated statement of profit or loss and other comprehensive income(Units: million yen)Previous consolidated
accounting year
(from July 1, 2017
to June 30, 2018)

Profits for the year

Current consolidated accounting
year(from July 1, 2018
to June 30, 2019)

2,112

1,663

Remeasurement of defined benefit system

7

△219

Financial assets measured by fair value
through other comprehensive income

--

△177

7

△397

100

--

33

△2

133

△2

141

△399

2,254

1,264

Equity shareholders of the parent company

2,270

1,258

Non-controlling interest△16

5Comprehensive income for the year

2,254

1,264

Other comprehensive income
Items not transferring over to profit or loss:

Total of the items not transferring over to profit
or loss
Items which may be transferred over to profit
or loss
Fluctuation of fair value of the assets which
can be sold
Other comprehensive income equity ofaffiliated company accounted for by theequity method
Total of the items which may be transferredover to profit or loss
Other comprehensive income after tax
deduction
Comprehensive income for the year

Attribution of the comprehensive income for the
year:

－ 9 －

(4)

Consolidated statement of changes in equity
Previous consolidated accounting year (from July 1, 2017 to June 30, 2018)(Units: million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2017

CapitalCapitalsurplusTreasury
stock

3,390

3,271

△687

Conversion
differenceof businessactivities
overseas

Fluctuationof fair
value offinancialassetswhich canbe sold

Remeasurementofdefinedbenefitsystem

△81

364

--

Total equity
attributing to Non-controlling Total equity
interests
Retained the equity
Total otherearnings shareholders
componentsof theof funds
company

283

14,403

20,661

11

20,672

--

2,129

2,129

△16

2,112

Profits of the year
Other comprehensive income
Comprehensive income of
the year

--

--

--

33

100

7

141

33

100

7

141

2,129

2,270

--

△857

△857

△857
35

Dividends of the surplus

141

Share-based paymenttransactions, etc.

35

--

35

Transactions with noncontrolling interest, etc.

△1

--

△1

Transfer from other capitalcomponent to retained
earnings
Total of transactions, etc.,with the owners
Balance on June 30, 2018

△7

△7

7

--

141
△16

2,254

16

14
--

--

34

--

--

--

△7

△7

△850

△823

16

△807

3,390

3,305

△687

△47

464

--

416

15,682

22,10811

22,119Current consolidated accounting year (from July 1, 2018 to June 30, 2019)(Units: million yen)
Equity attributable to equity shareholders of the company
Other components of funds

Balance on July 1, 2018
Cumulative effect amountdue to change ofaccounting method
Carrying amount with thechange in accounting
method reflected

CapitalCapitalsurplusTreasury
stock

3,390

3,305

△687

3,390

3,305

△687

Conversion
differenceof businessactivities
overseas

Fluctuationof fair valueof financial
assetswhich canbe sold

Financialassetsmeasuredby fairvaluethroughothercomprehensive
profits

△47

464

--

△464

464

--

464

△47

Remeasurement ofdefinedbenefitsystem----Profits of the year
Other comprehensive
incomeComprehensive
income of the year

△2
--

--

--

△2

--

416

15,682

22,10822,119

--

△18

△18

416

15,66422,08911

22,101

--

1,658

1,658

5

1,663

△18

△219

△399

--

△399

△177

△219

△399

1,658

1,258

--

△348

△348

△348

--

56

56

--

△0

△0

--

56

△0

Acquisition of treasury
stock

11

Total
equity△177

Dividends of surplus
Share-based paymenttransactions, etc.

Total equity
Nonattributing to controlling
Retained the equity
interest
Total otherearnings shareholders
componentsof theof funds
company

Transfer from othercapital component to
Retained earnings

219

219

△219

--

△399
5

1,264

Total transactions,etc. with theowners

--

56

△0

--

--

--

219

219

△568

△292

--

△292

Balance on June, 30, 2019

3,390

3,362

△687

△50

--

286

--

236

16,75423,05616

23,072－ 10 －

(5) Consolidated statement of cash flow
(Units: million yen)
Current consolidated
accounting year
(from July 1, 2018
to June 30, 2019)

Previous consolidated
accounting year
(from July 1, 2017
to June 30, 2018)
Cash flow from operating activities
Profits of the year

2,112

1,663

Depreciation and amortization costs

1,499

1,708

Interest income and dividend

△14

△13

Interest expense

65

45

Investment gain / loss through equity method

△7

△32

Corporate income tax expenses

1,981

1,630

Increase / decrease of trade receivables (△ isan increase)△756△1,99220△409

Increase / decrease of trade payables(△ is a decrease)

△362

240

Increase / decrease in retirement benefits
liabilities (△ is a decrease)

△214

△440

Other

314

597

Subtotal

4,639

2,998

14

13

△65

△45

△1,572△1,932

3,015

1,033

△1,902△2,195

19

7

Payment for intangible assets

△257

△240

Payment for loans receivable

△21

△25

Proceed from loans receivable

46

20

Expense through transfer of business

△697

--

Other

△77

30

△2,890△2,402

Increase / decrease of inventories (△ is anincrease)

Interest and dividend received
Interest paid
Corporate income tax paid
Cash flow from operating activities

Cash flow from investment activities
Expenditures due to the acquisition of tangible
fixed assets and investment properties
Proceeds from sales of tangible fixed assets
and investment properties

Cash flow from investment activities－ 11 －

Previous consolidated accounting
year(from July 1, 2017
to June 30, 2018)

Current consolidated
accounting year
(from July 1, 2018
to June 30, 2019)

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

△725

700

Proceeds from long-term loans

225

--

Repayment of long-term loans

△984

△226

Repayment of finance lease debts

△625

△563

Dividend paid

△857

△348

Income from non-controlling interests--△0

Acquisition of treasury stock14--△2,953△438△2,828△1,807

8,101

5,273

5,273

3,465

Cash flow from financing activities
Increase / decrease in of cash and cash
equivalents (△ is a decrease)
Cash and cash equivalents at the beginning of
the year
Balance of cash and cash equivalents at the endof the year

－ 12 －

(6) Notes on the consolidated financial statements(Notes on going concern assumption)
There are no applicable matters.
(Changes in accounting policies)
The important company policies applicable to this consolidated financial statement summary will be thesame company policies applicable to the consolidated financial statements of the previous consolidated
accounting year excluding the below.
Our group has applied the following standards starting from this first quarter of the consolidated
accounting period.
Standard and interpretation guide

Summary

IFRS No. 9

Financial products

Revisions regarding recognition and measurement offinancial assets / financial debts, depletion offinancial assets, accounting standards for generic
hedge

IFRS No. 15

Profits generated from contracts
with clients

Revisions of accounting process regarding profit
recognition(Application of IFRS No. 9 “financial products”)
Our group has applied IFRS No. 9 “financial products” (hereinafter referred to as “IFRS No. 9”) startingfrom the first quarter of this consolidated accounting period. At our group, in accordance with transitional
measures, retrospective restatement for the previous consolidated accounting year is not conducted, but isbased on IAS No.39 “Financial Products: Recognition and Measurement” (hereinafter referred to as “IAS 39”).
Further, the group has adopted a method which recognizes the cumulative effects due to the application ofthis standard on the first application date.
At our group, the classification of financial assets has been changed based on the facts and status existingon the first application date due to the application of IFRS No. 9.
Our group has classified non-derivative financial assets as financial assets measured at amortized costand financial income measured at fair value through profit / loss or other comprehensive income.
All financial assets are classified as financial assets measured by amortized cost if they satisfy the below
requirements.
• Are held in a business model for the purpose of holding financial assets to recover contractual cash flows.
• Cash flows which are only payment of interest on principal and principal balances, generated on thedesignated day based on the contract requirements of the financial asset.
Financial assets aside from the financial assets measured by amortized cost (excluding operatingreceivables that do not have significant financial factors measured at the transaction price at initialrecognition) are classified as financial assets measured by fair value. Equity instruments measured by fairvalue are under the irrevocable option in which the fluctuation after the fair value is displayed in othercomprehensive income and are classified as equity instruments measured by fair value through othercomprehensive income, excluding equity instruments held for the purpose of selling which must be measured
by fair value through net profit / loss. Further, no liability financial instruments are held.
In accordance with this reclassification, equity instruments that were previously classified as availablefor-sale financial assets are classified as financial assets to be measured at fair value through othercomprehensive income.
Also, in IFRS No. 9, the depletion of financial assets will change from “generation of loss model” to“forecasted credit loss model” of IAS No. 39 “Financial products: recognition and measurement.” Our groupconducts an evaluation at the end of the consolidated accounting period on whether the credit risk regarding
the financial assets has increased significantly from the time of initial recognition; if the credit risk has notincreased significantly from the time of initial recognition, the amount equivalent to 12 months of forecast
credit loss is recognized as the allowance for bad debts. On the other hand, if the credit risk has increased
significantly from the time of initial recognition, the amount equivalent to the forecasted credit loss for thewhole period is recognized as the allowance for bad debts. However, the allowance for bad debts for tradereceivables not containing major financial factors is always recognized as the amount equivalent to theforecasted credit loss for the entire period regardless of the presence of significant increase in credit risk fromthe time of initial recognition. The forecasted credit loss is estimated through a method which reflects thechanges in credit information, past due information of credit, etc.
Due to the application of this standard, compared to the case in which the prior accounting standard isapplied, the trade and other receivables have decreased 21 million yen, deferred tax asset has increased
3 million yen, and the retained earnings has decreased 18 million yen at the beginning of the first quarter ofthis consolidated accounting period.
(Application of IFRS No. 15 “Profit generated from contracts with clients”)
Our group has adopted a method of recognizing the cumulative effects of adopting the same standard on
effective date of adoption, to which is applied IFRS No. 15 “Profits generated from contracts with clients”(published in May of 2014) and “Clarification of IFRS No. 15” (published in April of 2016) (hereinafter collectively
referred to as “IFRS No. 15”) starting from the first quarter of this consolidated accounting period. Accompanying－ 13 －

the application of IFRS No. 15, profits are recognized based on the 5-step approach indicated below.
Step 1: Identify contracts with clients
Step 2: Identify the performance obligation of the contract
Step 3: Calculate the transaction amount
Step 4: Distribute the transaction price to the performance obligation in the contract
Step 5: Recognize the profits when a business satisfies the performance obligation
The profits provided from the main duties of our group are calculated from the transport of automobiles,
temporary staffing, port cargo handling, and transport of general consumer goods.
Among such transactions, in principle items with which the customer acquires control at the time ofdelivery of the goods / stored items, etc. and satisfy the performance obligation are recognized as revenue
when the goods / stored items, etc. are handed over. For the transactions by contract agreement which isprovision of services and such over a certain period of time, as the performance obligation is satisfied overa certain period of time, revenue is recognized according to the degree of progress.
The major revenue from the sales of goods constitutes used car export sales. Revenue is recognized when
the contractual delivery conditions are fulfilled.
Also, there are major effects on our group’s status of business performance and financial status throughthe application of these standards; in the current consolidated accounting year, sales profit increased by 212
million yen, operating profit and profit before taxes each increased 97 million yen respectively, and the profit
from this term increased by 67 million yen compared to when the conventional accounting standards wereapplied, due to changes in the handling of acknowledgement of profits, etc. which complies with fulfillmentof the above-mentioned performance obligations, and the basic profit per share increased by 4.1 yen.
Furthermore, contract assets increased by 212 million yen at the end of this consolidated accounting year,
and other current assets decreased by 114 million yen compared to when conventional accounting standards
were applied.
(Segment information)(1) Summary of the report segment
As for the report segment of our group, financial information separate from the constituent units of ourgroup can be obtained, and it is subject for regular consideration for the highest council of decision-making todetermine the allocation of corporate resources and to evaluate the business.
Our group has collected the business segments based on the form of management organization and thecharacteristics of the services, to establish the report segments as “automobile-related business,” “humanresource business,” and “general cargo business.”
Main services affiliated with each report segment
Segment
Main services
Automobile-related business Automobile transport, maintenance, used car auction, used car export, etc.
Human resource business
Dispatching drivers, managing the operation of home-use automobiles
General cargo business
General consumer goods transport / storage, handling cargo such as coal,slag, etc., warehouse rent, etc.
(2) Sales profit, profit / loss, assets by report segment and the amount in other categories
The sales profit, profit / loss, assets by report segment and the amount in other categories at our groupare as follows. Also, the sales profit between segments is based on the actual market prices.

－ 14 －

Previous accounting year (from July 1, 2017 to June 30, 2018)(Units: million yen)
Total amount
Adjustment on theamountconsolidated(note) 1
financialstatements

Automobile
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

59,515

16,4895,371

81,376--

81,376

66

1,199

412

1,678

△1,678--59,582

17,6895,783

83,055△1,67881,376

Segment profit (operating profit)

4,658

529

882

6,070

△1,9544,116

Segment assets

21,294

6,304

6,874

34,472

3,817

38,290

Increased amount in non-current
assets (note) 2

3,280

155

73

3,508

210

3,719

Depreciation costs and depreciation

1,108

85

204

1,397

101

1,499

Sales revenue from externalcustomers
Sales revenue between segments
Total

Total

Other items(Note) 1: The adjustment amount is as follows.
(1) The △1,954 million yen adjustment amount in the segment profits includes the total company cost △1,954 million
yen and 0 million yen of transaction elimination between segments. The total company cost is an expense related
to the management divisions of our company not belonging to the reporting segment.
(2) The 3,817 million yen adjustment amount in the segment assets includes the total company cost 9,193 million yen
not allocated to each report segment as well as △5,376 million yen of transaction elimination between segments.
(3) The adjustment amounts in other items are related to the total company cost that is not allocated to each report
segment.
(Note) 2: Non-current assets do not include financial assets, deferred tax assets, etc.
Current accounting year (from July 1, 2018 to June 30, 2019)(Units: million yen)
Total amount
Adjustment on theamountconsolidated(note) 1
financialstatements

Automobile
relatedbusinesses

Human
resourcebusinesses

Generalcargobusinesses

65,766

18,527

5,935

90,228--90,228

39

1,221

433

1,694

△1,694--65,80519,748

6,368

91,923△1,69490,228Segment profit (operating profit)

4,894

313

150

5,358

△2,053

3,305

Segment assets

23,783

6,423

7,414

37,621

1,933

39,554

Increased amount in non-current
assets (note) 2

2,618

72

251

2,942

0

2,942

Depreciation costs and depreciation

1,325

89

202

1,616

91

1,708

Sales revenue from externalcustomers
Sales revenue between segments
Total

Total

Other items(Note) 1: The adjustment amount is as follows.
(1) The △2,053 million yen adjustment amount in the segment profits includes the total company cost △2,053 million
yen and 0 million yen of transaction elimination between segments. The total company cost is an expense related
to the management divisions of our company not belonging to the reporting segment.
(2) The 1,933 million yen adjustment amount in the segment assets includes the total company cost 9,362 million yen
not allocated to each report segment as well as △7,429 million yen of transaction elimination between segments.
(3) The adjustment amount in other items are related to the total company cost that is not allocated to each report
segment.
(Note) 2: Non-current assets do not include financial assets, deferred tax assets, etc.

－ 15 －

(3) Information by region
1) The breakdown of sales profits by destination from external customers is as follows.
Previous consolidated accounting year (from July 1, 2017 to June 30, 2018)
Japan

Asia
75,58678(Unit: million yen)Total
81,3760(Unit: million yen)Total
90,228

Other
5,711

Current consolidated accounting year (from July 1, 2018 to June 30, 2019)
Japan

Asia
80,0262)

Other
10,201

Non-current assets
There is nothing applicable since there are no non-current assets located outside of Japan.

(4) Information by major client
Previous consolidated accounting year (from July 1, 2017 to June 30, 2018)(Unit: million yen)
Title or name of the client
Sales profit
Related segment
Nissan Motors Group (Note)
19,853
Automobile-related business(Note) The sales results of Nissan Motor Group are the sales results of Nissan Motor Co., Autech Japan,
Inc., and Nissan Motor dealerships in Japan added together.
Current consolidated accounting year (from July 1, 2018 to June 30, 2019)(Unit: million yen)
Title or name of the client
Sales profit
Related segment
Nissan Motors Group (Note)
19,495
Automobile-related business(Note) The sales results of Nissan Motor Group are the sales results of Nissan Motor Co., Autech Japan,
Inc., and Nissan Motor dealerships in Japan added together.
(Per share information)
The calculations of basic earnings per share and basic earnings per share after dilution in the previous
consolidated accounting year and current accounting year are as follows:(1) Basic earnings per share
Previous consolidated
accounting year
（from July 1, 2017
to June 30, 2018）
Profit for the year attributable to equity

Current accounting year
（from July 1, 2018
to June 30, 2019）

2,129

1,658

Weighted average number of common sharesissued (thousand shares)

16,595

16,626

Basic earnings per share (yen)128.3399.74

shareholders of the company (million yen)

(2) Basic earnings per share after dilution
Previous consolidated
accounting year
（from July 1, 2017
to June 30, 2018）

Current accounting year
（from July 1, 2018
to June 30, 2019）

Profit for the year used to calculate earnings per
share after dilution (million yen)

2,129

1,658

Impact of Dilutive Potential Common Stock
Stock benefit trust ＢＢＴ（thousand shares）

18

27

Weighted average number of shares after dilution（thousand shares）

16,614

16,654

Earnings per share after dilution（yen）

128.1899.58－ 16 －

（Significant subsequent events）
Not applicable.

－ 17 －