ZERO : FY2021 Financial Results

About this update from Zero Co., Ltd.

Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 [Based on IFRS] August 10, 2022 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 28, 2022 Scheduled date to commence dividend payments: September 29, 2022 Scheduled Date for the Submission of Annual Securities Report: September 29, 2022 Preparation of supplementary material on financial results: Yes Holding of financial results meeting: No (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the fiscal year ended June 30, 2022 (From July 1, 2021 to June 30, 2022) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes) Profit attributable to Total comprehensive Sales revenue Operating income Profit before tax Net Income equity shareholders income of the fiscal of the company year Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % FY2021/2022 107,045 16.1 3,912 3,947 2,521 2,535 2,718 △ 26.6 △ 26.6 △ 30.2 △ 30.1 △ 31.2 FY2020/2021 92,171 3.0 5,332 45.1 5,373 46.0 3,614 51.4 3,626 52.7 3,949 66.2 Basic earnings of this Diluted earnings of this year Profit ratio attributable to Total capital profit ratio Sales revenue operating year per share per share equity shareholders of the before tax profit ratio company Yen Yen % % % FY2021/2022 150.91 150.72 8.7 7.5 3.7 FY2020/2021 216.55 215.85 13.6 11.3 5.8 (Reference) Investment gain / loss through equity method; FY2021/2022: 3 million yen, FY2020/2021: 42 million yen (2) Consolidated financial position Equity attributable to equity Equity ratio attributable Equity per share attributable to equity Total assets Total capital shareholders of the to equity shareholders of shareholders of the company the company company Millions of yen Millions of yen Millions of yen % Yen FY2021/2022 54,895 30,614 30,067 54.8 1,789.25 FY2020/2021 50,935 28,298 28,280 55.5 1,688.83 (3) Consolidated cash flow position Cash flow from operating Cash flow from investing Cash flow from financing Cash and cash equivalents at end activities activities activities of year Million yen Million yen Million yen Million yen FY2021/2022 3,954 △ 3,266 △ 1,608 5,180 FY2020/2021 8,594 △ 3,104 △ 4,364 5,904 2. Cash dividends Annual dividends per share Total dividends Dividend Equity dividend 1st quarter- 2nd quarter- 3rd quarter- Fiscal year- Total (Total) payout ratio ratio attributable (consolidated) to equity end end end end shareholders of the company (consolidated) Yen Yen Yen Yen Yen Million yen % % FY2020/2021 --- 15.00 --- 39.10 54.10 911 25.0 3.4 FY2021/2022 --- 15.00 --- 22.70 37.70 635 25.0 2.1 FY2022/2023 --- 15.00 --- 25.20 40.20 25.0 (forecast) 3. Forecast of consolidated financial results for the year ending June 30, 2023 (From July 1, 2022 to June 30, 2023) (Percentages indicate year-on-year changes) Profit attributable to equity Sales revenue Operating income Profit before tax shareholders of the Basic earnings per share company Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 109,000 1.8 4,200 7.3 4,200 6.4 2,700 6.5 160.67 (Note) 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  Co. (Company name), Exclusions  Co. (Company name) (2) Changes in accounting policies, changes in accounting estimates  Changes in the accounting policies required by IFRS : No  Changes in the accounting policies due to reasons other than ① : No  Changes in the accounting estimates : No (3) Number of issued shares (common shares)  Total number of issued shares at the end of the FY2021/2022 17,560,242 shares FY2020/2021 17,560,242 shares period (including treasury shares)  Number of treasury shares at the end of the period FY2021/2022 994,982 shares FY2020/2021 1,018,911 shares  Average number of shares during the period FY2021/2022 16,804,791 shares FY2020/2021 16,745,846 shares (total up to this year) (Reference) Summary of non-consolidated financial results Non-consolidated financial results for the fiscal year ended June 30, 2022 (From July 1, 2021 to June 30, 2022) (1) Non-consolidated operating results (Percentages indicate year-on-year changes) Sales revenue Operating income Profit before tax Net Income Millions of yen % Millions of yen % Millions of yen % Millions of yen % FY2021/2022 53,143 2,169 2,190 1,385 △ 5.5 △ 15.1 △ 42.1 △ 47.2 FY2020/2021 56,226 1.3 2,557 67.9 3,780 149.8 2,626 197.8 Basic earnings per share Diluted earnings per share Yen Yen FY2021/2022 83.71 - FY2020/2021 158.81 - (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % yen FY2021/2022 37,967 23,628 62.2 1,426.41 FY2020/2021 35,807 23,121 64.6 1,397.80 (Reference) Company's Equity FY2021/2022: 23,628 million yen FY2020/2021: 23,121 million yen Earnings summary is not within the scope of audit by a certified public accountant or auditor Explanation of the proper use of financial results forecast and other notes The earnings forecast, and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that 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. At our company, business management is conducted on a consolidated basis; therefore, individual business results forecasts are not created. Attached Documents - Table of Contents 1. Summary of operating results……………………………………………………………………………………………… 2 (1) Summary of operating results of the current fiscal period ……………………………………………………………… 2 (2) Summary of financial position of the current fiscal period …………………………………………………………… 4 (3) Summary of cash flows of the current fiscal period …………………………………………………………………… 4 (4) Future outlook …………………………………………………………………………………………………………… 5 2. Basic view on selection of accounting standards …………………………………………………………………………… 5 3. 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 …………………………………………………………………………… 12 (Notes on going concern assumption) ……………………………………………………………………………… 12 (Segment information) ……………………………………………………………………………………………… 12 (Information per share) ……………………………………………………………………………………………… 15 (Business Combination) …………………………………………………………………………………………… 15 (Significant subsequent events) …………………………………………………………………………………… 18 - 1 - 1. Summary of operating results (1) Summary of operating results of the current fiscal period Japan's economy during the consolidated fiscal year has shown signs of recovery in many areas, the recovery in the automobile sector and other sectors has slowed down due to the impact of the new waves of the COVID-19 pandemic and partial production cutbacks in semiconductors and other products due to supply constraints. In the domestic automotive market, the total number of new vehicles sales decreased significantly to 83.8% (statistical data of the Japan Automobile Manufacturers Association) as compared to the consolidated cumulative period of the same quarter from the previous year (hereinafter referred to as the same quarter from the previous year). The shortage of semiconductors and the new pandemic wave of COVID-19 in Southeast Asia and China have had a significant impact on the reduction of production due to shortages in the supply of automobile parts. The number of used vehicle registrations also decreased to 92.2% compared to the same period of the previous year, due to the decrease in trade-in cars caused by the slump in new vehicle sales, and a decline in the number of used vehicles purchased as a result of the rise in the market for used vehicles. Revenue increased in the overseas related business due to the consolidation of Zero Scm Logistics (Beijing) Co., Ltd. as a consolidated subsidiary on July 1, 2021, as well as the strong performance of the used vehicle export business to Malaysia, but operating income decreased due to a decline in the number of units for transportation contracts as a result of the slump in automobile distribution, the soaring of unit price of fuel, and a decrease in employment adjustment subsidies compared to the previous consolidated fiscal year. As a result, the business results of our group are as follows: sales revenue of 107,045 million yen (116.1% compared to the same quarter from the previous year) and operating profit of 3,912 million yen (73.4% compared to the same quarter from the previous year). In addition, the profit before taxes was 3,947 million yen (73.4% compared to the same quarter from the previous year), and the profit of the quarter attributable to the equity shareholders of the company was 2,535 million yen (69.9% compared to the same quarter from the previous year). (Number of units related to domestic distribution of automobiles) Units: vehicles Domestic July of 2020 to June of 2021 July 2021 to June 2022 Compared to the previous year Number of new vehicles sold Domestic manufacturer *1 4,577,218 3,830,263 83.7% (out of this, Nissan *1 (483,552) (428,312) (88.6%) Motor) Foreign manufacturer *2 278,207 239,669 86.1% Total of new vehicle sales 4,855,425 4,069,932 83.8% Number of registered used vehicles Registered vehicles *3 3,909,258 3,591,917 91.9% Light vehicles *4 3,094,802 2,863,195 92.5% Total number of used 7,004,060 6,455,112 92.2% vehicles registered Number of vehicles *3 207,818 180,972 87.1% permanently deleted Export July of 2020 to June of 2021 July 2021 to June 2022 Compared to the previous year New vehicles of domestic *1 4,140,514 3,529,909 85.3% manufacturers Used vehicles(registered *5 1,177,126 1,276,107 108.4% 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 - 2 - [Fuel retail price] Unit: Yen / L National average July of 2020 to June of 2021 July 2021 to June 2022 Compared to the previous year Light oil *6 121.0 146.7 121.2% Regular petrol *6 140.6 166.9 118.7% *6 Calculated from statistics of Agency for Natural Resources and Energy (fuel used by our company for transport is mainly light oil) The segment business results are as follows. From the first quarter of the consolidated accounting period, the Company acquired an additional equity interest in Zero Scm Logistics (Beijing) Co., Ltd., which had been a jointly controlled company accounted for by the equity method, and made it a consolidated subsidiary, and as a result, the "Overseas Related Business" reporting segment was added. In addition, the automobile related businesses has been changed to the domestic automotive related businesses. For the following comparisons with the previous consolidated fiscal year, figures for the previous consolidated fiscal year have been reclassified to reflect the new segment classifications. "Domestic automotive related businesses" For vehicle transportation, which is the core business, the number of units for transportation contracts decreased due to the decline in new vehicles sales and used vehicle registrations caused by the shortage of semiconductors, which led to a decrease in revenue. Revenue in the maintenance business also decreased due to a decrease in the number of pre-delivery maintenance and inspection contracts accompanying the decline in new vehicle sales, and there was an overall decrease in revenue in the domestic automobile related businesses. Segment profit decreased due to lower revenue in the vehicle transportation and maintenance businesses, as well as higher unit fuel costs and fuel surcharges for marine transportation as a result of soaring crude oil prices and the depreciation of the yen. As a result, the overall sales revenue in the domestic automotive business was 51,482 million yen (93.6% compared to the same period from the previous year), and the segment profit was 4,202 million yen (72.5% compared to the same quarter from the previous year). In the vehicle transportation business, we will continue to respond to the "Digitalization", "Greening", and "New Normal. In the area of Digitalization, we have set up the Transportation Digitalization Promotion Office and are promoting the construction of a system to realize systematic allocation of vehicles. In the area of Greening, we have completed the development of transportation equipment with an increased maximum loading capacity to cope with the increased weight of automobiles as they become more electrically powered, and we will sequentially introduce the equipment. Also, with the rapid acceleration of the adoption of EVs, we will take the initiative in developing the infrastructure for logistics bases and building EV-related peripheral businesses. In response to the New Normal, we are striving to reduce overtime work in order to respond to the so-called "2024 Supply Chain Crisis", in which the application of the Work Style Reform Law to automobile driving duties is expected to take effect in 2024, we are also implementing various measures to maintain our transportation capacity, such as hiring new crew members, efficient operation of transportation equipment, and promotion of the division of labor in cargo handling. Regarding the pick-up service business, revenues continued to increase due to the recovery from the impact of COVID-19 pandemic, and revenues from the human resources business as well as airport related personnel business increased as the businesses recovered from the previous year, when they were affected by the termination of employment contracts due to the COVID-19 pandemic. Segment income decreased due to a lower employment adjustment subsidy compared to the previous consolidated fiscal year. As a result, the sales revenue of the overall human resource business was 19,330 million yen (107.7% compared to the same quarter from the previous year), and the segment profit was 666 million yen (80.0% compared to the same quarter from the previous year). In the port cargo handling business, the full-scale launch of fuel cargo handling for biomass power plants has led to an increase in revenue in the transport / warehousing business due to the acquisition of new customers, increasing the revenue in the overall general cargo business as well. - 3 - This is an excerpt of the original content. To continue reading it, access the original document here .

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