NIKKON : 2025.06.09Summary of Consolidated Financial Results for the Year Ended March 31,2025

Notice: This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Company name: NIKKON Holdings Co., Ltd. Stock exchange listing: Tokyo

Stock code: 9072 URL https://www.nikkon-hd.co.jp

Representative: President & Representative Director Masakatsu Kuroiwa

Inquiries: Director and Managing Executive Officer Yasunori Matsuda TEL 03-3541-5330 Scheduled date of ordinary general meeting of shareholders: June 27, 2025

Scheduled date to file Securities Report: June 25, 2025

Scheduled date to commence dividend payments: June 13, 2025 Preparation of supplementary material on financial results: No

Holding of financial results meeting: Yes (for analysts)

May 9, 2025

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

   1. Consolidated operating results Percentages indicate year-on-year changes

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Year ended March 31, 2025	247,890	11.5	23,155	9.0	23,969	0.4	16,550	(0.4)
      Year ended March 31, 2024	222,324	4.8	21,235	8.4	23,875	8.0	16,608	4.4

      Note: Comprehensive income Year ended March 31, 2025 12,732 million yen [(53.4)%]

      Year ended March 31, 2024 27,315 million yen [45.7%]

      	Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
      	Yen	Yen	%	%	%
      Year ended March 31, 2025	133.99	123.25	6.8	5.9	9.3
      Year ended March 31, 2024	130.49	130.27	7.0	6.4	9.6

      Reference: Investment profit (loss) on equity method Year ended March 31, 2025 572 million yen

      Year ended March 31, 2024 573 million yen

      Note: The Company has conducted a two-for-one share split of its shares, effective as of October 1, 2024. Earnings per share and diluted earnings per share are calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	Yen
      As of March 31, 2025	428,759	249,679	56.4	1,998.82
      As of March 31, 2024	388,446	246,445	63.3	1,949.93

      Reference: Equity As of March 31, 2025 241,627 million yen

      As of March 31, 2024 245,939 million yen

      Note: The Company has conducted a two-for-one share split of its shares, effective as of October 1, 2024. Net assets per share is calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year.

   3. Consolidated cash flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
      Year ended March 31, 2025 Year ended March 31, 2024	Millions of yen 27,642 31,107	Millions of yen (53,978) (24,340)	Millions of yen 19,076 (4,408)	Millions of yen 35,937 42,796

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Year ended March 31, 2024 Year ended March 31, 2025	 	50.00 54.00	 	55.00 27.00	105.00 	6,668 6,630	40.1 40.3	3.0 2.7
   Year ending March 31, 2026 (Forecast)		37.00		37.00	74.00		44.7

   Note: The Company has conducted a two-for-one share split of its shares, effective as of October 1, 2024. Therefore, the year-end dividend per share for the fiscal year ended March 31, 2025 reflects the effect of this share split, and the total annual dividend per share is shown as "-." Without considering the share split, the annual dividends per share for the fiscal year ended March 31, 2025 is ¥108 per share.

3. Forecast of consolidated financial results for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

   Percentages indicate year-on-year changes

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Earnings per share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   Six months ending September 30, 2025	137,000	13.8	13,700	20.2	14,400	33.4	9,800	49.9	81.07
   Full year	280,000	13.0	28,000	20.9	29,400	22.7	20,000	20.8	165.44

4. Notes

   1. Significant changes in the scope of consolidation during the year ended March 31, 2025 Yes

      Newly included: 8 companies Supreme Auto Transport, LLC, CHUOH PACK INDUSTRY CO.,LTD. and 6 other companies

   2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Yes Changes in accounting policies due to other reasons: No

      Changes in accounting estimates: No

      Restatement of prior period financial statements: No

   3. Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

126,479,784 shares

As of March 31, 2024

126,479,784 shares

As of March 31, 2025

Number of treasury shares at the end of the period

352,446 shares

As of March 31, 2024

5,594,372 shares

As of March 31, 2025

Average number of shares during the period

127,275,962 shares

Year ended March 31, 2024

123,514,017 shares

Year ended March 31, 2025

Note: The Company conducted a two-for-one share split of its shares on October 1, 2024. The total number of issued shares at the end of the period, number of treasury shares at the end of the period, and average number of shares during the period are calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year. The number of treasury shares at the end of the period and the number of treasury shares excluded from the calculation of the average number of shares outstanding during the period include treasury shares of the Company held by a trust whose beneficiaries are Directors (98,400 shares as of March 31, 2025, 98,400 shares as of March 31, 2024).

Reference: Summary of non-consolidated financial results

Non-consolidated financial results for the year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

1. Non-consolidated operating results Percentages indicate year-on-year changes

   	Net sales		Operating profit		Ordinary profit		Profit
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   Year ended March 31, 2025	9,610	(11.5)	7,186	(19.3)	6,605	(31.9)	6,403	(30.1)
   Year ended March 31, 2024	10,863	8.1	8,903	9.6	9,696	9.5	9,159	9.3

   	Earnings per share	Diluted earnings per share
   	Yen	Yen
   Year ended March 31, 2025	51.84	47.67
   Year ended March 31, 2024	71.97	71.84

   Note: The Company has conducted a two-for-one share split of its shares, effective as of October 1, 2024. Earnings per share and diluted earnings per share are calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year.

2. Non-consolidated financial position

Reference: Equity As of March 31, 2025 114,644 million yen

As of March 31, 2024 130,093 million yen

Note: The Company has conducted a two-for-one share split of its shares, effective as of October 1, 2024. Net assets per share is calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• Proper use of forecasts of financial results, and other special matters

  Forward-looking statements, including financial results forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Actual financial and other results may differ substantially from the statements herein due to various factors.

  Index of attached documents

  1. Overview of operating results and others 5

     1. Overview of operating results for the fiscal year under review 5

     2. Explanation of financial position for the fiscal year under review 5

     3. Overview of cash flows for the year under review 6

     4. Future outlook 6

     5. Basic policy on distribution of profits, and dividends in period under review and subsequent period 6

  2. Basic philosophy for selecting accounting standards 7

  3. Consolidated financial statements and significant notes thereto 8

     1. Consolidated balance sheets 8

     2. Consolidated statements of income and consolidated statements of comprehensive income 10

        (Consolidated statements of income) 10 (Consolidated statements of comprehensive income) 12

     3. Consolidated statements of changes in equity 13

     4. Consolidated statements of cash flows 15

     5. Notes on consolidated financial statements 17

(Notes on going concern assumption) 17

(Notes on significant changes in the amount of shareholders' equity) 17

(Changes in accounting policies) 17

(Change in method of presentation) 17

(Segment information) 18

(Per share information) 22

(Subsequent events) 22

1. Overview of operating results and others
   1. Overview of operating results for the fiscal year under review

      During the fiscal year ended March 31, 2025, the Japanese economy showed signs of improvement on the back of strong inbound demand and relatively favorable corporate business sentiment. On the other hand, the outlook remains uncertain due to deteriorating business sentiment in China and sluggish personal consumption in Japan. In the logistics industry, the severe business situation has continued due to the effects of labor shortage and increasing costs in personnel and energy expenses.

      Under these circumstances, the Group's consolidated sales for the fiscal year ended March 31, 2025 were 247,890 million yen, up 11.5% from the previous fiscal year, partly due to an increase in business volume and contributions from M&A that were aggressively pursued.

      Operating profit was 23,155 million yen, up 9.0% from the previous fiscal year. Ordinary profit was 23,969 million yen, up 0.4% from the previous fiscal year.

      Profit attributable to owners of parent was 16,550 million yen, down 0.4% from the previous fiscal year.

      Business results by segment are as follows. Transportation business

      Sales were 117,963 million yen, up 17.5% from the previous fiscal year, mainly due to a recovery of business volume and the consolidation of U.S. company Supreme Auto Transport, LLC. Operating profit was 6,314 million yen, up 13.1% from the previous fiscal year.

      Warehousing business

      Sales were 40,881 million yen, up 5.2% from the previous fiscal year, due to an increase in the volume of cargo stored, which is the result of our ongoing efforts in Japan and overseas to establish or expand warehouses. Operating profit was 8,558 million yen, up 2.8% from the previous fiscal year, mainly due to the effects of higher personnel expenses and depreciation.

      Packaging business

      Sales were 57,364 million yen, up 6.6% from the previous fiscal year, due to an increase in business volume. Operating profit was 4,248 million yen, up 28.0% from the previous fiscal year, due to the effect of efficiency improvement of operations and higher sales.

      Testing business

      Sales were 24,152 million yen, up 5.6% from the previous fiscal year, due to an increase in business volume. Operating profit was 3,989 million yen, up 19.8% from the previous fiscal year, due to the effect of higher sales.

   2. Explanation of financial position for the fiscal year under review

      (Assets)

      Current assets at the end of the fiscal year under review totaled 87,015 million yen, a decrease of 965 million yen from the end of the previous fiscal year. The decrease mainly came from a decrease of 7,063 million yen in cash and deposits, offset by increases of 4,469 million yen in notes and accounts receivable - trade, 952 million yen in Other and 355 million yen in electronically recorded monetary claims - operating. Non-current assets totaled 341,744 million yen, an increase of 41,279 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 18,098 million yen in property, plant and equipment due to the completion of warehouse construction in Utsunomiya City, Tochigi Prefecture, Kanegasaki Town, Iwate Prefecture, and Tokai City, Aichi Prefecture, the progress of warehouse construction in Suzuka City, Mie Prefecture and Thailand, an increase in the number of consolidated companies, as well as an increase of 13,495 million yen in customer-related intangible assets from M&As and an increase of 12,165 million yen in goodwill, partially offset by a decrease of 4,958 million yen in investment securities due to the market valuation.

      As a result, total assets were 428,759 million yen, an increase of 40,313 million yen from the end of the previous fiscal year.

      (Liabilities)

      Current liabilities at the end of the fiscal year under review totaled 76,641 million yen, an increase of 17,275 million yen from the end of the previous fiscal year. The increase mainly came from increases of 18,441 million yen in short-term borrowings, 776 million yen in income taxes payable and 426 million yen in provision for bonuses, partially offset by a decrease of 3,037 million yen in electronically recorded obligations - operating. Non-current liabilities totaled 102,439 million yen, an increase of 19,804 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 22,105 million yen in convertible-bond-type bonds with share acquisition rights, partially offset by a decrease of 1,758 million yen in deferred tax liabilities.

      (Net assets)

      Net assets at the end of the fiscal year under review totaled 249,679 million yen, an increase of 3,234 million yen from the end of the previous fiscal year. The increase mainly came from increases of 9,712 million yen in retained earnings, 7,553 million yen in non-controlling interests. Factors for decrease were an increase of 9,921 million yen in treasury shares and a decrease of 5,145 million yen in valuation difference on available-for-sale securities.

      As a result, the equity ratio at the end of the period under review was 56.4% (63.3% at the end of the previous fiscal year).

   3. Overview of cash flows for the year under review

      Cash and cash equivalents (hereafter referred to as "cash") at the end of the fiscal year under review were 35,937 million yen, a decrease of 6,859 million yen from the end of the previous fiscal year.

      The following is the status and factors of each of the cash flow categories during the fiscal year under review.

      (Cash flows from operating activities)

      Net cash provided by operating activities was 27,642 million yen, a decrease of 3,464 million yen from the previous fiscal year. Major factors having a positive impact on cash flow from operating activities included increases of 505 million yen in profit before income taxes and 2,443 million yen in cash flows from an increase in depreciation. Major factors having a negative impact on cash flow included decreases of 3,316 million yen in cash flows from increase (decrease) in other liabilities and 3,449 million yen in increase (decrease) in trade payables.

      (Cash flows from investing activities)

      Net cash used in investing activities was 53,978 million yen, an increase of 29,638 million yen from the previous fiscal year. This increase mainly came from an increase of 3,171 million yen in purchase of property, plant and equipment, in addition to 26,729 million yen in the acquisition of subsidiary shares through M&A.

      (Cash flows from financing activities)

      Net cash provided by financing activities was 19,076 million yen, an increase of 23,485 million yen from the previous fiscal year. This increase mainly came from an increase of 22,110 million yen in proceeds from issuance of convertible bond-type bonds with share acquisition rights and an increase of 9,412 million yen in proceeds from borrowings, offset by an outflow of 6,000 million yen for purchase of treasury stock and an increase of 1,535 million yen in dividends paid.

      (Reference) Trends in cash flow indicators

      	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
      Equity ratio (%)	64.4	63.4	63.3	56.4
      Market value equity ratio (%)	39.5	44.0	48.0	75.9
      Interest-bearing debt to cash flow ratio (%)	226.5	227.2	256.6	351.1
      Interest coverage ratio (times)	138.4	145.7	124.7	67.4

      * Equity ratio: Equity / Total assets

      Market value equity ratio: Market capitalization / Total assets

      Interest-bearing debt to cash flow ratio (%): Interest-bearing debt / Cash flow Interest coverage ratio: Cash flow / Interest payments

      1. All indicators are based on consolidated financial statements.

      2. Market capitalization is calculated by multiplying the closing stock price at fiscal year-end by the number of shares issued at fiscal year-end (minus treasury shares).

      3. Cash flow from operating activities is used for cash flow.

      4. Interest-bearing debts include all those on the consolidated balance sheet on which interest is being paid. Interest payments are taken from the consolidated statements of cash flows.

   4. Future outlook

      The Company expects that, as for the outlook for the future, although economic activity is showing signs of recovery, supported by inbound demand and other factors, the environment surrounding the Group is expected to remain challenging due to the chronic shortage of labor in Japan as well as the effects of the uncertain international situation.

      Under these circumstances, the fiscal year ending March 31, 2026 is the final year of "The 13th Medium-term Business Plan" formulated by the Group. For the final year of the above Plan, the year ending March 31, 2026, the Company forecasts the following performance, on a consolidated basis: net sales at 280,000 million yen, operating profit at 28,000 million yen, ordinary profit at 29,400 million yen, and profit attributable to owners of parent at 20,000 million yen.

      The financial outlook above is based on the data that are available to the Company and certain assumptions that the Company believes rational. Actual results may vary significantly due to various factors.

   5. Basic policy on distribution of profits, and dividends in period under review and subsequent period

   The Company's basic policy for dividend payments is to aim for a consolidated dividend payout ratio of 40%, and to pay progressive dividends, which means maintaining or increasing the total dividend amount for the full year compared to the previous fiscal year, without reducing it, in principle. For the fiscal year ended March 31, 2025, the Company plans to pay term-end dividends of ¥27 per share and annual dividends of ¥54 per share, including interim dividend. The Company conducted a two-for-one share split of its shares on an effective date of October 1, 2024, and the aforementioned annual dividend amount of ¥54 takes into account the effect of this share split.

   In addition, the Company has changed its dividend policy for the fiscal year ending March 31, 2026, to aim for a dividend on equity (DOE) of 4% or more, and to maintain or increase the annual dividend, in principle, without reducing the dividend from the previous year's result. As a result, the Company plans to pay a dividend of ¥74 per share for the fiscal year ending March 31, 2026 (interim dividend of ¥37 per share and year-end dividend of ¥37 per share).

2. Basic philosophy for selecting accounting standards

   The Group currently prepares the consolidated financial statements according to the generally accepted accounting standards in Japan (Japanese GAAP), as it makes it possible to compare the consolidated financial statements against previous fiscal year and against other companies.

   With regard to future adoption of IFRS, the Group will give due consideration to domestic and international circumstances and take actions accordingly.

3. Consolidated financial statements and significant notes thereto

1. Consolidated balance sheets

   (Millions of yen)

   Assets

   Current assets

   As of March 31, 2024 As of March 31, 2025

   Cash and deposits	43,847	36,784
   Notes and accounts receivable - trade	32,610	37,079
   Electronically recorded monetary claims - operating	5,946	6,302
   Merchandise and finished goods	-	153
   Raw materials and supplies	614	778
   Other	4,991	5,944
   Allowance for doubtful accounts	(29)	(27)
   Total current assets	87,981	87,015
   Non-current assets
   Property, plant and equipment Buildings and structures	241,579	264,704
   Accumulated depreciation	(126,469)	(138,573)
   Buildings and structures, net	115,109	126,131
   Machinery, equipment and vehicles	59,648	71,847
   Accumulated depreciation	(50,934)	(58,222)
   Machinery, equipment and vehicles, net	8,713	13,625
   Tools, furniture and fixtures	11,167	12,806
   Accumulated depreciation	(9,320)	(10,509)
   Tools, furniture and fixtures, net	1,847	2,297
   Land	120,058	121,851
   Leased assets	346	773
   Accumulated depreciation	(234)	(472)
   Leased assets, net	111	300
   Construction in progress	8,222	7,956
   Total property, plant and equipment	254,064	272,162
   Intangible assets
   Customer-related intangible assets	-	13,495
   Goodwill	2	12,167
   Other	2,496	3,900
   Total intangible assets	2,498	29,563
   Investments and other assets Investment securities	32,990	28,031
   Long-term loans receivable	241	30
   Deferred tax assets	3,669	4,273
   Retirement benefit asset	502	655
   Other	6,529	7,065
   Allowance for doubtful accounts	(31)	(38)
   Total investments and other assets	43,901	40,017
   Total non-current assets	300,464	341,744
   Total assets	388,446	428,759

   Liabilities

   Current liabilities

   (Millions of yen)

   As of March 31, 2024 As of March 31, 2025

   Notes and accounts payable - trade	10,615	11,223
   Electronically recorded obligations - operating	7,333	4,296
   Short-term borrowings	2,025	20,466
   Current portion of bonds payable	10,000	10,000
   Lease liabilities	37	112
   Income taxes payable	4,002	4,779
   Provision for bonuses	4,557	4,984
   Provision for bonuses for directors (and other officers)	218	249
   Notes payable - facilities	324	51
   Electronically recorded obligations - non-operating	4,405	4,542
   Other	15,845	15,934
   Total current liabilities	59,366	76,641
   Non-current liabilities
   Bonds payable	40,000	40,000
   Convertible-bond-type bonds with share acquisition rights	-	22,105
   Long-term borrowings	27,034	25,743
   Lease liabilities	84	214
   Deferred tax liabilities	8,571	6,813
   Retirement benefit liability	4,940	5,196
   Provision for retirement benefits for directors (and other officers)	466	556
   Other provisions	20	14
   Other	1,517	1,794
   Total non-current liabilities	82,634	102,439
   Total liabilities	142,001	179,080
   Net assets
   Shareholders' equity
   Share capital	11,316	11,316
   Capital surplus	12,332	12,499
   Retained earnings	198,226	207,939
   Treasury shares	(552)	(10,473)
   Total shareholders' equity	221,322	221,280
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	17,477	12,332
   Foreign currency translation adjustment	6,289	7,039
   Remeasurements of defined benefit plans	849	975
   Total accumulated other comprehensive income	24,616	20,346
   Share acquisition rights	161	152
   Non-controlling interests	344	7,898
   Total net assets	246,445	249,679
   Total liabilities and net assets	388,446	428,759

2. Consolidated statements of income and consolidated statements of comprehensive income (Consolidated statements of income)

   (Millions of yen)

   	Fiscal year ended	Fiscal year ended
   	March 31, 2024	March 31, 2025
   Net sales
   Transportation income	100,398	117,963
   Warehouse income	38,863	40,881
   Packaging income	53,809	57,364
   Other revenue	29,252	31,680
   Total net sales	222,324	247,890
   Cost of sales
   Transportation cost	89,820	103,588
   Warehouse cost	28,545	30,022
   Packaging cost	47,316	49,911
   Other costs	23,867	25,563
   Total cost of sales	189,549	209,086
   Gross profit	32,774	38,803
   Selling, general and administrative expenses
   Personnel expenses	6,765	7,576
   Provision for bonuses	429	451
   Provision for bonuses for directors (and other officers)	218	223
   Retirement benefit expenses	112	88
   Provision for retirement benefits for directors (and other officers)	73	80
   Depreciation	618	1,438
   Taxes and dues	1,321	1,397
   Travel and transportation expenses	331	387
   Provision of allowance for doubtful accounts	2	(0)
   Other	2,500	4,849
   Total selling, general and administrative expenses	11,539	15,648
   Operating profit	21,235	23,155
   Non-operating income
   Interest income	183	192
   Dividend income	884	1,202
   Rental income	75	79
   Share of profit of entities accounted for using equity method	573	572
   Foreign exchange gains	237	-
   Subsidy income	221	297
   Compensation income	413	21
   Miscellaneous income	408	493
   Total non-operating income	2,998	2,859
   Non-operating expenses
   Interest expenses	253	447
   Foreign exchange losses	-	1,253
   Miscellaneous expenses	104	344
   Total non-operating expenses	358	2,045
   Ordinary profit	23,875	23,969

   Extraordinary income

   Fiscal year ended March 31, 2024

   (Millions of yen) Fiscal year ended

   March 31, 2025

   Gain on sale of non-current assets 76 158

   Gain on sale of investment securities - 30

   Compensation for expropriation 115 -

   Total extraordinary income 192 188

   Extraordinary losses

   Loss on sale of non-current assets	11	17
   Loss on retirement of non-current assets	202	1
   Loss on disaster	13	-
   Settlement payments	97	-
   Loss on revision of retirement benefit plan	107	-
   Total extraordinary losses	432	18
   Profit before income taxes	23,634	24,140
   Income taxes - current	7,437	7,977
   Income taxes - deferred	(439)	(647)
   Total income taxes	6,998	7,329
   Profit	16,636	16,810
   Profit (loss) attributable to non-controlling interests	27	260
   Profit attributable to owners of parent	16,608	16,550

   (Consolidated statements of comprehensive income)
   		(Millions of yen)
   	Fiscal year ended	Fiscal year ended
   	March 31, 2024	March 31, 2025
   Profit	16,636	16,810
   Other comprehensive income
   Valuation difference on available-for-sale securities	7,054	(5,145)
   Foreign currency translation adjustment	2,713	789
   Remeasurements of defined benefit plans, net of tax	816	126
   Share of other comprehensive income of entities accounted for using equity method	95	151
   Total other comprehensive income	10,679	(4,078)
   Comprehensive income	27,315	12,732
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	27,277	12,280
   Comprehensive income attributable to non-controlling interests	38	451

3. Consolidated statements of changes in equity

Fiscal year ended March 31, 2024

(Millions of yen)

Fiscal year ended March 31, 2025

(Millions of yen)

Increase (decrease) in provision for bonuses for directors (and

other officers) 5 5

Increase (decrease) in allowance for doubtful accounts 16 0

Increase (decrease) in retirement benefit asset and liability 232 (316)

(Millions of yen)

(Notes on going concern assumption) No such events occurred.

(Notes on significant changes in the amount of shareholders' equity)

The Company acquired 1,632,800 treasury shares for 2,999 million yen based on a resolution of the Board of Directors meeting held on June 7, 2024. The Company acquired 3,615,700 treasury shares for 6,999 million yen based on a resolution of the Board of Directors meeting held on November 26, 2024.

The Company conducted a two-for-one share split of its shares on an effective date of October 1, 2024. The number of shares of treasury shares acquired based on the resolution of the Board of Directors meeting held on June 7, 2024 is the number of shares after the share split.

(Changes in accounting policies)

(Application of "Accounting Standard for Current Income Taxes" and other relevant ASBJ regulations)

The Company has applied the "Accounting Standard for Current Income Taxes" (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022; the "Revised Accounting Standard of 2022"), etc. from the beginning of the first three months of the fiscal year under review.

For the revision of the categories to record income taxes (taxation on other comprehensive income), we follow the transitional treatment defined in the proviso to paragraph 20-3 of the Revised Accounting Standard of 2022 and the transitional treatment defined in the proviso to paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28. October 28, 2022; the "Revised Guidance of 2022"). This change in accounting policies has no impact on the consolidated financial statements.

In addition, for changes related to the revised treatment in consolidated financial statements when a gain or loss on sale arising from the sale of shares of subsidiaries, etc. among consolidated companies is deferred for tax purposes, the Revised Guidance of 2022 has been applied from the beginning of the first three months of the fiscal year under review. This change in accounting policies has been applied retrospectively, and is reflected in the consolidated financial statements for the previous fiscal year. This change in accounting policies has no impact on the consolidated financial statements for the previous fiscal year.

(Change in method of presentation) (Consolidated balance sheet)

During the previous fiscal year, "goodwill" was included in "other" under intangible assets. It is stated independently from the fiscal year under review, as it has become more important. To reflect this method of presentation, reclassification is made in the consolidated financial statements in the previous fiscal year.

As a result, 2,498 million yen under "intangible assets" in the previous fiscal year, is reclassified to 2 million yen in "goodwill" and 2,496 million yen in "other."

(Segment information)

1. Overview of reportable segments

   The Company's reportable segments are components of the Company for which separate financial information is available, and which are evaluated regularly by the Board of Directors to determine allocation of management resources and assess performance.

   The Company divides the services it provides into four reporting segments according to service type: Transportation, Warehousing, Packaging and Testing.

   The Transportation segment engages in the transportation of finished four-wheeled vehicles and motorcycles, automotive parts, housing equipment, agricultural machinery and others. The Warehousing segment engages in the storage of finished four-wheeled vehicles and motorcycles, automotive parts, housing equipment, agricultural machinery and others. The Packaging segment engages in processing for distribution, the delivery of automotive parts and other goods on behalf of other parties, export packing and other operations. The Testing segment engages in testing finished four-wheeled vehicles and motorcycles, automotive parts, agricultural machinery and other goods.

2. Methods of calculating amounts of net sales, profit or loss, assets, liabilities, and other items by reportable segment Accounting procedures for the reportable segments are generally identical to those adopted for the consolidated financial statements. Profits in the reportable segments are operating profits. Transactions between the reportable segments are based on market prices.

3. Information regarding net sales, profit or loss, assets, liabilities and other items by reportable segment

   Fiscal year ended March 31, 2024 (Millions of yen)

   	Reportable segments					Others (Note 1)	Total	Adjusted amount (Note 2)	Consolidated financial statements amount
   	Transportation business	Warehousing business	Packaging business	Testing business	Total
   Net sales
   Automobiles	32,315	9,797	24,302	22,195	88,611	527	89,138	-	89,138
   Automotive parts	21,564	9,803	10,948	470	42,786	1,423	44,209	-	44,209
   Housing	15,523	3,617	8,132	-	27,274	167	27,441	-	27,441
   Agricultural machinery	4,414	1,761	959	58	7,193	106	7,300	-	7,300
   Food and beverages	1,451	2,537	678	-	4,667	58	4,726	-	4,726
   Newspapers and publications	4,723	0	0	-	4,723	-	4,723	-	4,723
   Others	20,405	10,737	8,788	157	40,088	2,948	43,037	-	43,037
   Revenue from contracts with customers	100,398	38,255	53,809	22,881	215,345	5,232	220,578	-	220,578
   Other revenue	-	607	-	-	607	1,138	1,745	-	1,745
   Sales to external customers	100,398	38,863	53,809	22,881	215,953	6,370	222,324	-	222,324
   Intersegment sales or transfers	373	299	283	11	968	2,419	3,387	(3,387)	-
   Total	100,772	39,163	54,092	22,893	216,921	8,790	225,712	(3,387)	222,324
   Segment profit	5,585	8,328	3,320	3,329	20,563	612	21,175	60	21,235
   Segment assets	117,002	133,777	66,751	20,169	337,701	49,602	387,304	1,142	388,446
   Others items
   Depreciation (Note 3)	2,931	6,643	1,183	1,062	11,820	662	12,483	-	12,483
   Investment in equity method affiliates	2,539	-	186	-	2,725	1,541	4,266	-	4,266
   Increase in property, plant and equipment and intangible assets (Note 3)	4,617	11,442	2,681	705	19,446	3,692	23,139	-	23,139

   Note: 1. The "Others" category consists of businesses that are not included in reportable segments. It includes the customs clearance business and automobile repair business, etc. Interest income related to operating and non-operating transactions is excluded from "Others" to more appropriately represent the actual situation.

   1. Adjustment of segment profit of 60 million yen is the difference resulting from the elimination of operating and non-operating transactions.

      Adjustment of segment assets of 1,142 million yen primarily includes surplus operating assets (time deposits, etc.) and long-term investment assets (investment securities).

   2. Depreciation includes the amortized amount of long-term prepaid expenses. Increase in property, plant and equipment and

      intangible assets includes the amount of increase in long-term prepaid expenses.

      Fiscal year ended March 31, 2025 (Millions of yen)

      	Reportable segments					Others (Note 1)	Total	Adjusted amount (Note 2)	Consolidated financial statements amount
      	Transportation business	Warehousing business	Packaging business	Testing business	Total
      Net sales
      Automobiles	43,630	10,038	26,998	23,588	104,255	583	104,838	-	104,838
      Automotive parts	24,939	11,508	11,662	508	48,619	1,424	50,043	-	50,043
      Housing	16,178	3,460	8,001	-	27,639	149	27,789	-	27,789
      Agricultural machinery	4,456	1,913	970	30	7,371	81	7,452	-	7,452
      Food and beverages	1,826	2,495	817	-	5,139	14	5,153	-	5,153
      Newspapers and publications	4,698	0	-	-	4,698	-	4,698	-	4,698
      Others	22,233	10,829	8,914	24	42,001	4,025	46,027	-	46,027
      Revenue from contracts with customers	117,963	40,245	57,364	24,152	239,726	6,277	246,003	-	246,003
      Other revenue	-	635	-	-	635	1,250	1,886	-	1,886
      Sales to external customers	117,963	40,881	57,364	24,152	240,362	7,527	247,890	-	247,890
      Intersegment sales or transfers	409	301	532	16	1,259	2,526	3,785	(3,785)	-
      Total	118,373	41,182	57,896	24,168	241,621	10,054	251,675	(3,785)	247,890
      Segment profit (loss)	6,314	8,558	4,248	3,989	23,111	(16)	23,095	60	23,155
      Segment assets	132,416	134,337	62,519	18,957	348,231	78,913	427,144	1,614	428,759
      Others items
      Depreciation (Note 3)	4,492	7,023	1,294	880	13,691	1,234	14,926	-	14,926
      Investment in equity method affiliates	2,713	-	192	-	2,906	1,922	4,829	-	4,829
      Increase in property, plant and equipment and intangible assets (Note 3)	7,062	12,713	2,422	1,783	23,982	3,574	27,556	-	27,556

      Note: 1. The "Others" category consists of businesses that are not included in reportable segments. It includes the customs clearance business and automobile repair business, etc. Interest income related to operating and non-operating transactions is excluded from "Others" to more appropriately represent the actual situation.

      1. Adjustment of segment profit of 60 million yen is the difference resulting from the elimination of operating and non-operating transactions.

         Adjustment of segment assets of 1,614 million yen primarily includes surplus operating assets (time deposits, etc.) and long-term investment assets (investment securities).

      2. Depreciation includes the amortized amount of long-term prepaid expenses. Increase in property, plant and equipment and intangible assets includes the amount of increase in long-term prepaid expenses.

4. Information regarding amortization and unamortized balance of goodwill for each reportable segment Fiscal year ended March 31, 2024

   Information is omitted because of immateriality.

   Fiscal year ended March 31, 2025

   (Millions of yen)

   	Transportation business	Warehousing business	Packaging business	Testing business	Others	Total
   Amortization	466	36	22	-	0	525
   Balance at end of period	3,758	146	89	-	8,173	12,167

   (Per share information)

   	Previous fiscal year (April 1, 2023 to March 31, 2024)	Current fiscal year (April 1, 2024 to March 31, 2025)
   Net assets per share	1,949.93 yen	1,998.82 yen
   Earnings per share	130.49 yen	133.99 yen
   Earnings per share after adjustment for the effects of dilutive potential shares	130.27 yen	123.55 yen

   Note: 1. The Company conducted a two-for-one share split of its common shares on October 1, 2024. Net assets per share, earnings per share and earnings per share after adjustment for the effects of dilutive potential shares are calculated based on the assumption that the share split was conducted at the beginning of the previous fiscal year.

   1. Shares of the Company remaining in a trust, which are recorded as treasury shares in shareholders' equity, are included in the treasury shares that are deducted when calculating the average number of shares outstanding during the period for the purpose of calculating earnings per share and included in the treasury shares that are deducted from the total number of shares outstanding at the end of the period for the purpose of calculating net assets per share.

      The average number of such treasury shares deducted when calculating earnings per share for the period was 68 thousand shares for the previous fiscal year and 98 thousand shares for the fiscal year under review. The number of such treasury shares at the end of the period, which was deducted in the calculation of net assets per share, was 98 thousand shares in the previous fiscal year and 98 thousand shares in the current fiscal year.

   2. The basis for calculating earnings per share and earnings per share after adjustment for the effects of dilutive potential shares during the period is as follows:

(Subsequent events)

No such events occurred.