1
FY2019(2019/7~2020/6)
Financial Results
Supplementary
Explanation
6th August 2020
Zero Co., Ltd.
President & CEO
Takeo Kitamura
2
- Agenda
- FY19 Look Back
- FY19 Japanese Automobile Market
- FY19 Business Summary and Analysis
- FY20 Outlook
- FY20 The COVID-19 Impact
- FY20 Forecast and Positioning
3
- Agenda
- FY19 Look Back
- FY19 Japanese Automobile Market
- FY19 Business Summary and Analysis
- FY20 Outlook
- FY20 The COVID-19 Impact
- FY20 Forecast and Positioning
FY19 Look back ① Japanese Automobile Market | 4 |
YOY New Vehicle Sales
120% | 113% | |||||||||||
104% | ||||||||||||
100% | 107% | 87% | 89% | 88% 90% 91% | ||||||||
80% | 71% | |||||||||||
60% | 75% | 55% | 77% | |||||||||
1,396,242 | 1,045,522 | 1,371,726 | 836,049 | |||||||||
40% | (108.1%) | (83.7%) | (89.8%) | (68.2%) | ||||||||
7 | 8 | 9 | 10 | 11 | 12 | 1 | 2 | 3 | 4 | 5 | 6 | |
1Q | 2Q | 3Q | 4Q |
YOY Used Car Registered
120% | 107% | 117% | 105% | |||||||||
98% | 99% | |||||||||||
98% 94% | ||||||||||||
100% | ||||||||||||
80% | 96% | 96% | 93% | 94% | 80% | |||||||
60% | 106.9% | 95.5% | 97.0% | 93.1% | ||||||||
7 | 8 | 9 | 10 | 11 | 12 | 1 | 2 | 3 | 4 | 5 | 6 | |
1Q | 2Q | 3Q | 4Q |
Reference:Automobile Dealers Association
Japan Light Motor Vehicle and Motorcycle Association
FY19 Look back ② Business Summary(Full-year) | 5 |
(Unit:Millions of | FY18 | FY19 | FY19 | Difference | Difference |
from | from | ||||
JPY) | Result | Forecast | Result | previous | |
forecast | |||||
year | |||||
Sales revenue | 90,228 | 95,000 | 89,501 | ▲5,499 | ▲727 |
Operating income | 3,305 | 4,000 | 3,675 | ▲325 | +370 |
(Ratio) | (3.7%) | (4.2%) | (4.1%) | ||
Profit before tax | 3,294 | 3,980 | 3,679 | ▲301 | +385 |
Profit attributable | |||||
to equity | 1,658 | 2,300 | 2,374 | +74 | +716 |
shareholders of | |||||
the company | |||||
Basic earnings of | 99.74 | 138.33 | 142.30 | +3.97 | +42.56 |
this year per | |||||
JPY | JPY | JPY | JPY | JPY | |
share | |||||
Annual dividend | 24.9 | 34.6 | 35.6 | +1.0 | +10.7 |
per share | JPY | JPY | JPY | JPY | JPY |
FY19 Look back ③ Business Summary(4Q) | 6 |
(Unit: | 1-3Q | 1-3Q | Diffe- | |
Millions of | YOY | |||
FY19 | FY19 | rence | ||
JPY) | ||||
Sales | 66,944 | 71,809 | +4,865 | 107.3% |
revenue | ||||
Operating | 2,175 | 3,439 | ||
income | +1,264 | 158.1% | ||
(Ratio) | (3.2%) | (4.8%) | ||
Profit | ||||
attributable | ||||
to equity | 888 | 2,274 | +780 | 256.1% |
shareholders | ||||
of the | ||||
company | ||||
4Q | 4Q | Diffe- | YOY |
FY19 | FY19 | rence | |
23,284 | 17,692 | ▲5,592 | 76.0% |
1,129 | 236 | ▲893 | 20.9% |
(4.9%) | (1.3%) | ||
770 100 ▲670 13.0%
4Q FY19 Overview
- Vehicle Transport&Automotive Periphery:The number of vehicles transported and pre-delivery inspected fell sharply in response to the drop in new vehicles sales.
- Used Car Export:The number of vehicle exported fell sharply as a result of the lockdown in Malaysia.
- Human Resource:Sales declined due to the suspension of the pick-up service contractor's business and the termination of the temporary staffing contracts.
- General Cargo : The number of packing in CKD business declined as a result of the lockdown in Thailand.
FY19 Look back ④ Performance Analysis(Sales Revenue)7
94,000 | ||||||||||||||||||||||||||||||||||
(Unit:Millions of JPY) | ||||||||||||||||||||||||||||||||||
92,000 | +3,625 | |||||||||||||||||||||||||||||||||
▲4,716 | ||||||||||||||||||||||||||||||||||
90,000 | ||||||||||||||||||||||||||||||||||
▲256 | ||||||||||||||||||||||||||||||||||
90,228 | +695 | ▲618 | +543 | |||||||||||||||||||||||||||||||
89,501 | ||||||||||||||||||||||||||||||||||
▲1,090 | +76 | +287 | ||||||||||||||||||||||||||||||||
88,000 | ||||||||||||||||||||||||||||||||||
FY18 | 1-3Q | 4Q | 1-3Q | 4Q | 1-3Q | 4Q | FY19 | |||||||||||||||||||||||||||
Automotive | Human | General | ||||||||||||||||||||||||||||||||
Sales | Sales | |||||||||||||||||||||||||||||||||
Related | Resource | Cargo | ||||||||||||||||||||||||||||||||
Revenue | Revenue | |||||||||||||||||||||||||||||||||
Business | Business | Business | ||||||||||||||||||||||||||||||||
Human Resource | 1-3Q | 4Q | FY19 | |||||||||||||||||||||||||||||||
Automotive Related | 65,766 → 64,675 | |||||||||||||||||||||||||||||||||
Pick-up | +380 | ▲290 | +90 | |||||||||||||||||||||||||||||||
Human Resource | 18,527 → 18,603 | |||||||||||||||||||||||||||||||||
Dispatch | +120 | ▲210 | ▲90 | |||||||||||||||||||||||||||||||
Airport Related | +200 | ▲120 | +80 | |||||||||||||||||||||||||||||||
General Cargo | 5,935 → 6,222 | |||||||||||||||||||||||||||||||||
Total | +700 | ▲620 | +80 | |||||||||||||||||||||||||||||||
Automotive Related | 1-3Q | 4Q | FY19 |
Vehicle Transport | +2,380 | ▲2,690 | ▲310 |
Automotive Periphery | ▲450 | ▲500 | ▲950 |
Used Car Export | +1,700 | ▲1,530 | +170 |
Total | +3,630 | ▲4,720 | ▲1,090 |
General Cargo | 1-3Q | 4Q | FY19 |
Transport/Warehouse | +90 | ▲60 | +30 |
Port handling | ▲130 | +50 | ▲80 |
CKD | +580 | ▲250 | +330 |
Total | +540 | ▲260 | +290 |
FY19 Look back ⑤ Performance Analysis(Operating Income)8
4,500
(Unit:Millions of JPY) | |||||||||||||||||||||
4,000 | +337 | ▲339 | |||||||||||||||||||
▲159 | |||||||||||||||||||||
3,500 | +531 | 3,675 | |||||||||||||||||||
3,000 | |||||||||||||||||||||
3,305 | |||||||||||||||||||||
2,500 | |||||||||||||||||||||
FY18 | Automotive | Human | General | Adjustment | FY19 | ||||||||||||||||
Operating | Related | Resource | Cargo | Operating | |||||||||||||||||
Income | Business | Business | Business | Income | |||||||||||||||||
Automotive Related | 4,894 → 5,426 | General Cargo | 150 → ▲188 | ||||||||||||||||||
・Profit improvement in block companies
・Extension of car carriers'
depreciation period
・Drop in unit price of fuel expenses ・Profit decrease in automotive
periphery business
・Allowance for bad debts in used car
+400 ・Profit increased in the transport/ warehousing business
+320 ・Profit decreased in the port handling +240 business
・Launching cost in CKD business
▲300
+10
▲180 ▲170
export business | ▲130 | |||
Human Resource | 313 → 650 | Adjustment | ▲2,053 → ▲2,212 | |
・Recovery from transient job | ・General administrative expenses increase▲160 |
advertisement expenses | +290 |
・Cost reduction | +50 |
FY19 Look back ⑥ Performance Analysis(B/S) | 9 | |||||||||||||||||||||||||||||||
(Unit:Millions | Current assets | Liabilities | ||||||||||||||||||||||||||||||
of JPY) | Non-current assets | Equity | ||||||||||||||||||||||||||||||
+4,960 | ||||||||||||||||||||||||||||||||
┌──── | ──────┐ | ┌──── | ──────┐ | |||||||||||||||||||||||||||||
+4,960 | ||||||||||||||||||||||||||||||||
50,000 | 50,000 | |||||||||||||||||||||||||||||||
44,514 | +3,139 | |||||||||||||||||||||||||||||||
44,514 | ||||||||||||||||||||||||||||||||
40,000 | 39,554 | 40,000 | 39,554 | |||||||||||||||||||||||||||||
+1,822 | ||||||||||||||||||||||||||||||||
+10 | +4,950 | |||||||||||||||||||||||||||||||
30,000 | 19,620 | |||||||||||||||||||||||||||||||
18,177 | 18,187 | 30,000 | 16,481 | |||||||||||||||||||||||||||||
20,000 | ||||||||||||||||||||||||||||||||
20,000 | ||||||||||||||||||||||||||||||||
10,000 | 26,327 | |||||||||||||||||||||||||||||||
23,072 | 24,894 | |||||||||||||||||||||||||||||||
0 | 21,377 | 10,000 | ||||||||||||||||||||||||||||||
June | June | 0 | ||||||||||||||||||||||||||||||
30, | 30, | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||||||||||||||
- Current : Cash increase and trade receivables decrease
- Non-current:Tangible fixed assets increase
- Liabilities:Lease debts increase*
- Equity:Retained earnings increase
*Due to the application of IFRS 16 (New Lease Standard),
mainly for real estate lease contracts, equivalent value of the total amount of rentals for a certain period(Total of 4,624 million yen) is recorded on the balance sheet as right-of-use assets (non-current assets) / lease debts (liabilities)
FY19 Look back ⑦ Performance Analysis(C/F) | 10 | ||||
(Unit:Millions of JPY) | FY18 | FY19 | Difference | Comments | |
Cash flow from | 1,033 | 6,538 | +5,505 | ||
operating activities | |||||
Profit of the year | 1,663 | 2,387 | +724 | ||
Depreciation and | 1,708 | 4,188 | +2,480 | Due to application of | |
amortization costs | IFRS16 | ||||
Increase / decrease of | ▲1,992 | 345 | +2,337 | Decrease of used car | |
trade receivables | export receivables | ||||
Other | ▲346 | ▲382 | ▲36 | ||
Cash flow from | ▲2,402 | ▲2,067 | +335 | ||
investing activities | |||||
Expenditures due to | |||||
the acquisition of | ▲2,195 | ▲1,889 | +306 | ||
tangible fixed asset | |||||
Other | ▲207 | ▲178 | +29 | ||
Cash flow from | ▲438 | ▲3,157 | ▲2,719 | ||
financing activities | |||||
Repayment of finance | ▲563 | ▲3,209 | ▲2,646 | Due to application of | |
lease debts | IFRS16 | ||||
Other | 125 | 52 | ▲73 |
11
- Agenda
- FY19 Look Back
- FY19 Japanese Automobile Market
- FY19 Business Summary and Analysis
- FY20 Outlook
- FY20 The COVID-19 Impact
- FY20 Forecast and Positioning
FY20 Outlook ① The COVID-19 Impact in FY20 | 12 |
Segment | Business | Weather | Comments |
Forecast | |||
1Q | The automobile market is recovering from the COVID-19 impact, but | ||
it is expected to fall sharply compared to the previous year when there | |||
was a rush of demand before the tax increase. | |||
Vehicle | 2Q | It is expected to remain at the same level as in the previous year, | |
when the market was recovering from the COVID-19 effects and the | |||
Transport/ | impact of the tax increase and natural disasters. | ||
Automotive | Automotive | ||
3Q | It is expected to remain at the same level as the previous year, when | ||
Periphery | |||
Related | |||
the effect of the launch of new models vehicles and COVID-19 was | |||
simultaneously felt. | |||
4Q | It is expected to recover significantly from the previous year when | ||
COVID-19 hit directly, to the same level as the year before last. | |||
Used Car | Due to the aftermath of the lockdown in Malaysia, it is not expected to | ||
Export | recover during the first half of FY20. | ||
Pick-up | Due to COVID-19, some customers terminate pick-up service | ||
Human | contracts. | ||
Resource | Dispatch | Some customers terminate temporary staffing contracts in FY19 4Q. | |
As for airport business, It is not expected to recover during FY20. | |||
Transport/ | Due to COVID-19, some customers' cargo volume decreases. | ||
Warehouse | |||
General | Port Handling | Sales declines mainly in the vehicle and chassis handling business at | |
Cargo | Kanda Port. | ||
CKD | Packing volume decreases due to the suspension of the factory in | ||
Thailand. | |||
FY20 Outlook ② FY20 Forecast | 13 | |||
(Unit:Millions of | FY19 | FY20 | Difference | YOY |
JPY) | Result | Forecast | from FY19 | |
Sales Revenue | 89,501 | 81,000 | ▲8,501 | 90.5% |
Operating Income | 3,675 | 3,600 | ▲75 | 98.0% |
(Ratio) | ||||
Profit before Tax | 3,679 | 3,580 | ▲99 | 97.3% |
Profit attributable to | ||||
equity shareholders | 2,374 | 2,300 | ▲74 | 96.9% |
of the company | ||||
Basic earnings of | 142.30JPY | 137.84JPY | ▲4.46JPY | 96.9% |
this year per share | ||||
Dividend per share | 35.6JPY | 34.5JPY | ▲1.1JPY | 96.9% |
(Interim 15.0JPY) | (Interim 15.0JPY) | |||
FY20 Positioning
- To break free from the sense of blockage and stagnation caused by the spread of the COVID-19 infection, then return to a growth trajectory.
- Toward "Coexistence "with coronavirus, to mobilize the power of the Zero
Group to promote initiatives for FY21 and beyond, including consideration of new work styles. - To build a sustainable growth scenario and business portfolio that responds to changes in social conditions and market trends.
14
60th anniversary in October 2021
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ZERO Co. Ltd. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 01:28:06 UTC