ニッコンホールディングス（9072） – [Delayed] Summary of Consolidated Financial Results for the Year Ended March 31, 2022

Translation Notice: This document is an excerpt 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. Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (Based on Japanese GAAP) Company name: NIKKON Holdings Co., Ltd. Stock exchange listing: Tokyo Stock code: 9072 URL http://www.nikkon-hd.co.jp May 13, 2022Representative: Inquiries: President & Representative Director Director, Managing Executive Officer, and General Manager of Accounting Department Masakatsu Kuroiwa Scheduled date of ordinary general meeting of shareholders: June 29, 2022 Yasunori Matsuda TEL 03-3541-5330 Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results meeting: 1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) June 30, 2022 June 8, 2022 (for analysts) No Yes (1) Consolidated operating results Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Millions of yen 198,159 182,536 % Millions of yen 19,512 8.6 18,191 (8.5) % Millions of yen 21,584 7.3 20,572 (12.9) % Millions of yen 14,741 4.9 14,544 (8.7) % 1.4 (13.0) Year ended March 31, 2022 Year ended March 31, 2021 Note: Comprehensive income Year ended March 31, 2022 Year ended March 31, 2021 19,667 million yen [55.0%] 15,710 million yen [(20.1)%] Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 224.41 221.26 Yen 223.81 220.51 % 6.9 7.3 % 6.5 6.6 % 9.8 10.0 Year ended March 31, 2022 Year ended March 31, 2021 Reference: Investment profit (loss) on equity method Year ended March 31, 2022 Year ended March 31, 2021 460 million yen 484 million yen (Amounts less than one million yen are rounded down)(2) Consolidated financial position As of March 31, 2022 As of March 31, 2021 Reference: Equity (3) Consolidated cash flows Year ended March 31, 2022 Year ended March 31, 2021 Total assets Net assets Equity ratio Net assets per share Millions of yen 339,475 322,139 Millions of yen 219,035 208,290 % 64.4 64.5 Yen 3,334.70 3,160.46 As of March 31, 2022 As of March 31, 2021 218,478 million yen 207,747 million yen Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 28,985 23,229 Millions of yen (31,567) (25,402) Millions of yen 759 1,473 Millions of yen 29,157 30,366 1 4. Notes 2. Cash dividends Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen 33.00 34.00 48.00 Yen Yen 34.00 35.00 48.00 Yen Millions of yen 67.00 69.00 96.00 4,404 4,531 % 30.3 30.7 40.1 % 2.1 2.1 3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ending September 30, 2022 Full year 102,000 215,000 7.8 8.5 10,200 10.1 11,000 10.5 7,300 11.6 21,500 10.2 23,000 6.6 15,700 6.5 Yen 111.42 239.63 No Yes No (1) Changes in significant subsidiaries during the year ended March 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (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: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: Note: For details, please refer to “Changes in accounting policies” of “3. Consolidated financial statements and significant notes thereto, No No (5) Notes on consolidated financial statements” on page 17 of the attached documents. (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2022 68,239,892 shares As of March 31, 2021 68,239,892 shares Number of treasury shares at the end of the period Average number of shares during the period As of March 31, 2022 2,723,278 shares As of March 31, 2021 2,506,469 shares Year ended March 31, 2022 Note: 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 shares of the Company held by a trust whose beneficiaries are Directors (26,900 shares as of March 31, 2022). 65,689,004 shares Year ended March 31, 2021 65,733,467 shares 2 Reference: Summary of non-consolidated financial results Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results Percentages indicate year-on-year changesYear ended March 31, 2022 Year ended March 31, 2021 Net sales Operating profit Ordinary profit Profit Millions of yen 9,767 12,197 % Millions of yen 8,101 10,601 (19.9) 10.8 % Millions of yen 8,843 10,864 (23.6) 9.8 % Millions of yen 8,425 10,693 (18.6) 9.1 % (21.2) 3.6 Earnings per share Diluted earnings per share Yen 128.26 162.69 Yen 127.92 162.14 Year ended March 31, 2022 Year ended March 31, 2021 (2) Non-consolidated financial position As of March 31, 2022 As of March 31, 2021 Total assets Net assets Equity ratio Net assets per share Millions of yen 214,252 209,301 Millions of yen 123,712 120,947 % 57.6 57.6 Yen 1,884.78 1,835.10 Reference: Equity As of March 31, 2022 123,484 million yen 120,627 million yen As of March 31, 2021 * 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 (Caution regarding forward-looking statements) 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. 3Index of attached documents 1. Overview of operating results and others …………………………………………………………………………………………….. 5 (1) Overview of operating results for the period ………………………………………………………………………………….. 5 (2) Explanation of financial position for the fiscal year under review …………………………………………………….. 5 (3) Overview of cash flows for the period …………………………………………………………………………………………… 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 (Changes in accounting policies) ………………………………………………………………………………………………… 17 (Change in method of presentation) …………………………………………………………………………………………….. 17 (Segment information) ………………………………………………………………………………………………………………. 18 (Per share information) ……………………………………………………………………………………………………………… 20 (Subsequent events) ………………………………………………………………………………………………………………….. 20 41. Overview of operating results and others (1) Overview of operating results for the period During the fiscal year ended March 31, 2022, the Japanese economy continued to experience harsh conditions despite ongoing signs of recovery amid the persisting impact of the novel coronavirus disease (COVID-19). The number of new COVID-19 cases has been declining due to vaccination followed by the signs that economic activities are returning to normal. Economic condition, however, is expected to remain uncertain as social and economic activities have fully recovered yet. In the logistics industry, the severe business situation has continued due to a chronic labor shortage and intensified competition in addition to rising fuel prices and other factors. Under these circumstances, the Group’s consolidated sales for the fiscal year ended March 31, 2022 were 198,159 million yen, up 8.6% from the previous fiscal year, mainly due to a recovery in business volume. Operating profit was 19,512 million yen, up 7.3% from the previous fiscal year, due to the effects of sales increase and efficiency improvement of operations. Ordinary profit was 21,584 million yen, up 4.9% from the previous fiscal year, following the increase in operating profit. Profit attributable to owners of parent was 14,741 million yen, up 1.4% from the previous fiscal year. Business results by segment are as follows. Transportation business Sales were 90,338 million yen, up 6.8% from the previous fiscal year, mainly due to a recovery in the volume of cargo handled. Operating profit was 4,498 million yen, down 4.0% from the previous fiscal year, due to the effect of higher fuel price. Warehousing business Sales were 34,600 million yen, up 7.8% 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 8,050 million yen, up 6.6% from the previous fiscal year, mainly due to the effect of higher sales. Packaging business Sales were 44,363 million yen, up 10.5% from the previous fiscal year, mainly due to a recovery in the volume handled. Operating profit was 2,354 million yen, down 0.5% from the previous fiscal year, mainly due to the effects of higher personnel expenses and outsourcing expenses. Testing business Sales were 21,863 million yen, up 6.8% from the previous fiscal year, mainly due to a recovery in the volume handled. Operating profit was 3,739 million yen, up 33.1% from the previous fiscal year, due to the effects of higher sales and efficiency improvement of operations. (2) Explanation of financial position for the fiscal year under review (Assets) Current assets at the end of the fiscal year under review totaled 74,655 million yen, an increase of 113 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 1,729 million yen in notes and accounts receivable – trade, despite decreases of 1,172 million yen in cash and deposits and 494 million yen in securities. Non-current assets totaled 264,819 million yen, an increase of 17,222 million yen from the end of the previous fiscal year. The increase mainly came from an increase of 18,400 million yen in property, plant and equipment due to purchase of warehouses (in Ota City, Gunma Prefecture, Yorii Machi, Saitama Prefecture, Asaka City, Saitama Prefecture, Inzai City, Chiba Prefecture, Niigata City, Niigata Prefecture, Takaoka City, Toyama Prefecture, Kani City, Gifu Prefecture, Seto City, Aichi Prefecture, Ibaraki City, Osaka Prefecture, and Thailand), business sites (in Tokai City, Aichi Prefecture, Oura Machi, Gunma Prefecture, and Furukawa City, Ibaragi Prefecture), and an income property (in Wako City, Saitama Prefecture). As a result, total assets were 339,475 million yen, an increase of 17,336 million yen from the end of the previous fiscal year. (Liabilities) Current liabilities at the end of the fiscal year under review totaled 44,367 million yen, a decrease of 1,901 million yen from the end of the previous fiscal year. This decrease mainly came from decreases of 2,541 million yen in electronically recorded obligations – non-operating and 2,020 million yen in short-term borrowings, partially offset by increases of 1,737 million yen in notes and accounts payable – trade and 679 million yen in electronically recorded obligations – operating. Non-current liabilities totaled 76,072 million yen, an increase of 8,493 million yen from the end of the previous fiscal year. This increase mainly came as the company financed 10,000 million yen through issuing bonds to fund facilities, partially offset by repaying long-term borrowings of 1,823 million yen. As a result, total liabilities were 120,440 million yen, an increase of 6,591 million yen from the end of the previous fiscal year. (Net assets) Net assets at the end of the fiscal year under review were 219,035 million yen, an increase of 10,744 million yen from the end of the previous fiscal year. This increase mainly came from an increase of 10,209 million yen in retained earnings. As a result, the equity ratio at the end of the period under review was 64.4% (64.5% at the end of the previous fiscal year). 5(3) Overview of cash flows for the period Cash and cash equivalents (hereafter referred to as “cash”) at the end of the fiscal year under review were 29,157 million yen, a decrease of 1,208 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 inflow from operating activities was 28,985 million yen, an increase of 5,755 million yen from the previous fiscal year. The increase mainly came from increases of 3,196 million yen in loss on retirement of non-current assets, 2,584 million yen in cash flows from increase (decrease) in trade payables, 1,953 million yen in cash flows from increase (decrease) in other liabilities, and 673 million yen in depreciation, partially offset by the decrease of 3,285 million yen in gain from forfeiture of leased assets. (Cash flows from investing activities) Net cash used in investing activities totaled 31,567 million yen, an increase of 6,164 million yen from the previous fiscal year. This increase mainly came from an increase of 6,255 million yen in purchase of property, plant and equipment. (Cash flows from financing activities) Net cash inflow from financing activities totaled 759 million yen, a decrease of 713 million yen from the previous fiscal year. This decrease mainly came from an increase of 573 million yen in purchase of treasury shares. (Reference) Trends in cash flow indicators Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 63.3 59.0 188.0 149.6 64.8 46.8 205.5 136.7 64.5 45.4 256.5 112.9 64.4 39.5 226.5 138.4 Equity ratio (%) Market value equity ratio (%) Interest-bearing debt to cash flow ratio (%) Interest coverage ratio (times) * 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 lows. (4) Future outlook For future outlook, both domestic and international economies are expected to recover as business activities reopen. However, the severe business situation surrounding the Company is expected to continue, due to potential rebound of COVID-19 infection, chronic labor shortage and intensified competition. Under these circumstances, the group developed “The 12th Medium-term Business Plan (Challenge 12)” for three years from April 1, 2020 and have been set out to achieve the goals. However, as various business environments surrounding the company have changed, the company revisited the consolidated financial goals of the fiscal year ending March 2023, the final year of the Challenge 12, and revised the goals: 215,000 million yen for sales, 21,500 million yen for operating profit, 23,000 million yen for ordinary profit, and 15,700 million yen for profit attributable to owners of parent. 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 has a basic policy for dividend payments of aiming for a consolidated payout ratio of 30%. For the fiscal year ended March 31, 2022, the Company plans to pay term-end dividends of 35 yen per share and annual dividends of 69 yen per share, including interim dividends. The Company revised the basic policy for dividend payments of aiming for a consolidated payout ratio of 40% from the fiscal year ending March 31, 2023. The Company, therefore, plans to pay annual dividends of 96 yen per share (48 yen in interim dividends and 48 yen in term-end dividends) for the fiscal year ending March 31, 2023. 62. 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. 73. Consolidated financial statements and significant notes thereto (1) Consolidated balance sheets As of March 31, 2021 As of March 31, 2022 (Millions of yen) 31,399 33,380 3,704 951 408 4,713 (15) 74,542 197,057 (104,943) 92,114 51,357 (43,059) 8,298 8,622 (7,401) 1,220 103,966 551 (458) 92 8,236 213,928 2,073 22,191 668 3,409 5,399 (73) 31,595 247,596 322,139 30,227 35,110 3,545 456 531 4,797 (12) 74,655 215,176 (111,952) 103,224 54,924 (46,099) 8,825 9,353 (8,030) 1,323 110,792 541 (361) 180 7,981 232,328 2,173 20,911 559 3,485 5,390 (29) 30,317 264,819 339,475 Assets Current assets Cash and deposits Notes and accounts receivable – trade Electronically recorded monetary claims – operating Securities Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 8 As of March 31, 2021 As of March 31, 2022 (Millions of yen) Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Lease liabilities Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Notes payable – facilities Electronically recorded obligations – non-operating Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Lease liabilities Deferred tax liabilities Retirement benefit liability Provision for retirement benefits for directors (and other officers) Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 9,799 5,521 3,843 67 4,186 3,785 183 242 6,470 12,168 46,269 40,000 15,033 34 5,570 5,088 395 1,457 67,579 113,848 11,316 12,332 180,131 (6,187) 197,593 10,295 (187) 46 10,154 320 222 208,290 322,139 11,537 6,200 1,823 85 3,645 3,977 196 489 3,929 12,482 44,367 50,000 13,210 88 5,138 5,696 435 1,502 76,072 120,440 11,316 12,332 190,340 (6,609) 207,380 9,621 1,807 (330) 11,098 227 328 219,035 339,475 9(2) Consolidated statements of income and consolidated statements of comprehensive income (Consolidated statements of income) (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 84,553 32,083 40,136 25,763 182,536 75,767 22,851 35,464 20,883 154,966 27,569 5,782 394 183 124 63 552 1,276 165 (1) 1,601 9,378 18,191 77 488 76 484 164 320 781 386 2,780 205 97 60 34 398 20,572 90,338 34,600 44,363 28,856 198,159 81,220 24,727 39,490 23,226 168,665 29,493 6,038 395 192 106 96 527 1,325 208 (1) 1,882 9,980 19,512 68 613 75 460 532 130 17 494 2,392 210 50 – 59 320 21,584 Net sales Transportation income Warehouse income Packaging income Other revenue Total net sales Cost of sales Transportation cost Warehouse cost Packaging cost Other costs Total cost of sales Gross profit Selling, general and administrative expenses Personnel expenses Provision for bonuses Provision for bonuses for directors (and other officers) Retirement benefit expenses Provision for retirement benefits for directors (and other officers) Depreciation Taxes and dues Travel and transportation expenses Provision of allowance for doubtful accounts Other Total selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income Share of profit of entities accounted for using equity method Foreign exchange gains Subsidy income Compensation income Miscellaneous income Total non-operating income Non-operating expenses Interest expenses Bond issuance costs Non-deductible consumption tax, etc. Miscellaneous expenses Total non-operating expenses Ordinary profit 10 Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on revision of retirement benefit plan Compensation income Gain on cancellation of leases Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Loss on valuation of investment securities Loss on sale of investment securities Loss on disaster Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 416 372 167 – – 956 33 77 – – 21 131 21,397 6,771 64 6,836 14,560 16 14,544 114 3 – 17 3,285 3,421 20 3,339 4 4 – 3,368 21,637 6,850 34 6,884 14,752 11 14,741 11(Consolidated statements of comprehensive income) Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 14,560 3,347 1,332 409 17 5,106 19,667 19,633 33 14,752 (674) 1,894 (376) 114 958 15,710 15,685 25 12(3) Consolidated statements of changes in equity Fiscal year ended March 31, 2021 Balance at beginning of current period Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes of items other than shareholders’ equity Total changes of items during period Balance at end of current period Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity 11,316 12,332 170,254 (6,186) 187,716 (4,667) 14,544 (0) (4,667) 14,544 (0) – 9,876 197,593 – 11,316 – 12,332 9,877 180,131 (0) (6,187) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of current period Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes of items other than shareholders’ equity Total changes of items during period Balance at end of current period 6,948 (1,520) (363) 5,064 320 194 193,296 3,347 1,332 3,347 10,295 1,332 (187) 409 409 46 5,089 5,089 10,154 – 320 27 27 (4,667) 14,544 (0) 5,117 14,994 222 208,290 13 (Millions of yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity 11,316 12,332 180,131 (6,187) 197,593 (4,472) 14,741 (59) 10,209 190,340 (639) 217 (422) (6,609) 11,316 12,332 Fiscal year ended March 31, 2022 Balance at beginning of current period Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes of items other than shareholders’ equity Total changes of items during period Balance at end of current period Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of current period Changes of items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes of items other than shareholders’ equity Total changes of items during period Balance at end of current period 10,295 (187) 46 10,154 320 222 208,290 (674) 1,995 (674) 9,621 1,995 1,807 (376) (376) (330) 943 943 11,098 (92) (92) 227 106 106 328 (4,472) 14,741 (639) 158 957 10,744 219,035 (4,472) 14,741 (639) 158 9,786 207,380 14(4) Consolidated statements of cash flows Cash flows from operating activities Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 21,397 10,630 167 (29) 5 452 11 (566) 205 (484) (382) 77 – (372) (742) 759 (167) (968) (544) 29,447 764 (205) (6,776) 23,229 (49,505) 49,215 (701) 877 (25,985) 762 (394) (438) 861 (207) 343 (115) – (116) (25,402) 21,637 11,237 164 9 (47) 104 39 (681) 210 (460) (96) 3,273 (3,285) 0 (718) 814 2,416 985 (186) 35,419 1,176 (209) (7,401) 28,985 (1,081) 1,162 (225) 1,066 (32,240) 160 (382) (140) 95 (125) 220 – (263) 187 (31,567) Profit before income taxes Depreciation Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in allowance for doubtful accounts Increase (decrease) in retirement benefit liability Increase (decrease) in provision for retirement benefits for directors (and other officers) Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Gain on cancellation of leases Loss (gain) on sale of investment securities Decrease (increase) in trade receivables Decrease (increase) in other assets Increase (decrease) in trade payables Increase (decrease) in other liabilities Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of securities Proceeds from sale and redemption of securities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Loan advances Proceeds from collection of loans receivable Purchase of shares of subsidiaries and associates Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities 15 Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 Cash flows from financing activities Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Proceeds from issuance of bonds Redemption of bonds Dividends paid Dividends paid to non-controlling interests Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 130 (3,869) (0) 20,000 (10,000) (4,667) (5) (113) 1,473 246 (453) 30,820 30,366 – (3,843) (573) 10,000 – (4,472) (6) (344) 759 613 (1,208) 30,366 29,157 16(5) Notes on consolidated financial statements (Notes on going concern assumption) No such events occurred. (Changes in accounting policies) (Application of Accounting Standard for Revenue Recognition, etc.) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year under review, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. Accordingly, the Company and its consolidated domestic subsidiaries recognize revenue, assuming obligation is fulfilled by providing cargo transportation service from start of cargo transportation to arrival of cargo, or to inspection of delivered goods by addressees. The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the first quarter of the fiscal year under review was added to or deducted from the opening balance of retained earnings of the first quarter of the fiscal year under review, and thus the new accounting policy was applied from such opening balance. However, the new accounting policy was not retrospectively applied to contracts for which nearly all the revenue amounts had been recognized according to the previous treatment in periods prior to the beginning of the first quarter of the fiscal year under review, by applying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition. As a result of this change, for the fiscal year under review, net sales decreased by 126 million yen, cost of sales decreased by 80 million yen, while gross profit, operating profit, ordinary profit and profit before income taxes each decreased by 45 million yen respectively. There is no impact on the opening balance of retained earnings. According to transitional treatment set in paragraph 89-3 of the Accounting Standard for Revenue Recognition, information about revenue breakdown from contracts with customers in the previous fiscal year is not stated. (Application of Accounting Standard for Fair Value Measurement, etc.) The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year under review, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no impact on the consolidated financial statements. (Change in method of presentation) During the previous fiscal year, “Loss on retirement of non-current assets” was included in “Other” under cash flows from operating activities. It is stated independently from the fiscal year under review, as it has become more important. To reflect this change, reclassification is made in the consolidated financial statements in the previous fiscal year. As a result, (467) million yen under “Other” in cash flows from operating activities in the previous fiscal year, is reclassified to 77 million yen under “Loss on retirement of non-current assets” and (544) million yen under “Other.” 17(Segment information) 1. Overview of reportable segments The Company’s reportable segments are components of the Company for which separate financial information is available that is evaluated regularly by the Board of Directors to determine allocation of management resources and assess performance. Depending on the type of service to provide, the Company has four reporting segments, 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, delivery agency of automotive parts and others, export packing and other operations. The Testing segment engages in testing finished four-wheeled vehicles and motorcycles, automotive parts, agricultural machinery and others. 2. Methods of calculating amounts of net sales, profit or loss, assets, liabilities, and other items by reportable segment Methods of 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, 2021 Reportable segments Transpor-tation business Warehousing business Packaging business Testing business Total Others (Note 1) Total (Millions of yen) Adjusted amount (Note 2) Consolidated financial statements amount Net sales 84,553 32,083 40,136 20,463 177,236 5,300 182,536 – 182,536 254 342 512 14 1,123 2,176 3,299 (3,299) Total Segment profit 84,807 4,686 32,426 7,549 20,477 178,359 7,476 185,836 (3,299) 182,536 2,809 17,411 921 18,332 Segment assets 99,985 106,183 17,534 277,476 43,349 320,825 Others 40,648 2,365 53,773 – – 2,986 4,796 1,077 1,130 9,991 639 10,630 1,417 174 1,592 1,054 2,646 (141) 1,314 18,191 322,139 – 10,630 2,646 – – – Sales to external customers Intersegment sales or transfers Depreciation (Note 3) Investment in equity method affiliates Increase in property, plant and equipment and intangible assets (Note 3) 6,651 10,574 2,182 1,951 21,361 6,983 28,344 28,344 (Notes) 1. The “Others” category consists of business that is not included in reportable segments. It includes customs clearance business and automobile repair business, etc. 2. Adjustment of segment profit of (141) million yen is the difference resulting from the elimination of operating and non-operating transactions. Adjustment of segment assets of 1,314 million yen primarily includes surplus operating assets (time deposits, etc.) and long-term investment assets (investment securities). 3. 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. 18Automobiles Automotive parts Housing Agricultural machinery Food and beverages Newspapers and publications Others Revenue from contracts with customers Other revenue Sales to external customers Intersegment sales or transfers Depreciation (Note 3) Investment in equity method affiliates Increase in property, plant and equipment and intangible assets (Note 3) (Millions of yen) Adjusted amount (Note 2) Consolidated financial statements amount 73,321 42,282 26,571 7,217 4,303 4,615 38,177 196,490 1,669 198,159 – 11,237 2,722 – – – – – – – – – – – – – Fiscal year ended March 31, 2022 Reportable segments Net sales Transpor-tation business 24,801 21,232 15,547 4,625 1,459 4,614 Warehousing business Packaging business Testing business Total Others (Note 1) Total 8,689 9,509 3,030 1,520 2,170 0 17,668 9,309 7,837 924 617 0 21,189 556 – 20 – – 72,348 40,609 26,414 7,091 4,248 4,615 972 1,673 156 73,321 42,282 26,571 126 7,217 55 – 4,303 4,615 18,057 9,069 8,005 97 35,229 2,947 38,177 90,338 33,990 44,363 21,863 190,556 5,933 196,490 – 609 – – 609 1,059 1,669 90,338 34,600 44,363 21,863 191,166 6,993 198,159 313 285 403 26 1,028 2,603 3,632 (3,632) Total Segment profit 90,652 4,498 34,886 8,050 21,890 192,195 3,739 18,643 9,596 1,035 19,678 201,791 (3,632) 198,159 Segment assets 101,054 115,758 18,170 291,415 46,905 338,321 Others (165) 1,153 19,512 339,475 44,766 2,354 56,432 – – 2,880 5,412 1,033 1,235 10,561 676 11,237 1,536 135 1,672 1,049 2,722 5,154 13,826 2,802 1,477 23,261 5,019 28,280 28,280 (Notes) 1. The “Others” category consists of business that is not included in reportable segments. It includes customs clearance business and automobile repair business, etc. 2. Adjustment of segment profit of (165) million yen is the difference resulting from the elimination of operating and non-operating transactions. Adjustment of segment assets of 1,153 million yen primarily includes surplus operating assets (time deposits, etc.) and long-term investment assets (investment securities). 3. Depreciation includes the amortized amount of long-term prepaid expenses. Increase in property, plant and equipment 4. and intangible assets includes the amount of increase in long-term prepaid expenses. (Matters relating to changes in reportable segments) As described in “Changes in accounting policies,” the Company has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter of the fiscal year under review, and changed the accounting treatment for revenue recognition. Accordingly, the Company has changed the method of measuring profit or loss of operating segments. According to those changes, compared to previous accounting treatment, in Transportation business, sales decreased by 103 million yen and segment profit decreased by 35 million yen. In Packaging business, sales decreased by 19 million yen and segment profit decreased by 9 million yen. In Others, sales decreased by 3 million yen, and segment profit decreased by 0 million yen. 19(Per share information) Previous fiscal year (April 1, 2020 to March 31, 2021) Net assets per share Earnings per share Earnings per share after adjustment for the effects of dilutive potential shares during the period is as follows. Items Current fiscal year (April 1, 2021 to March 31, 2022) 3,160.46 yen Net assets per share 221.26 yen Earnings per share 220.51 yen Earnings per share after adjustment for the effects of dilutive potential shares 3,334.70 yen 224.41 yen 223.81 yen Previous fiscal year (April 1, 2020 to March 31, 2021) Current fiscal year (April 1, 2021 to March 31, 2022) (Note) The basis for calculating earnings per share and earnings per share after adjustment for the effects of dilutive potential shares (1) Earnings per share Profit attributable to owners of parent (millions of yen) Amount not belonging to common shareholders (millions of yen) Profit attributable to owners of parent on common stock (millions of yen) Average common shares during the period (thousand shares) (2) Earnings per share after adjustment for the effects of dilutive potential shares Adjustment of profit attributable to owners of parent (million yen) Increase in the number of common shares (thousand shares) (Subscription rights to shares (thousand shares)) Overview of potential shares not included in the calculation of Earnings per share after adjustment for the effects of dilutive potential shares because of having no dilutive effect (Subsequent events) No such events occurred. 14,544 14,544 65,733 – – – 222 (222) 14,741 – 14,741 65,689 – – 174 (174) 20