ZERO : Financial Results for the First Quarter of FY2025

November 13, 2025

Company name: ZERO CO., LTD. Stock Exchange Listing: Tokyo Stock code: 9028 URL: https://http://www.zero-group.co.jp/

Representative: President & CEO Toshihiro Takahashi

Inquiries: General Manager of Corporate Planning Department Takashi Date TEL 044-520-0106 Scheduled date to commence dividend payments: -

Preparation of supplementary material on quarterly financial results: Yes Holding of quarterly financial results meeting: No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the first quarter ending of the fiscal year June 30, 2026 (From July 1, 2025 to September 30, 2025)

   1. Consolidated operating results (cumulative)

      (Percentages indicate year-on-year changes)

      	Sales revenue		Operating income		Profit before tax		Quarterly	income	Profit attributable to equity shareholders of the company		Total comprehensive income of the quarter
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      1Q FY2025/2026	35,453	3.3	2,510	△7.9	2,516	△7.3	1,754	△7.5	1,747	△7.4	2,046	17.9
      1Q FY2024/2025	34,312	8.3	2,724	142.2	2,715	138.5	1,895	162.1	1,887	166.2	1,735	125.4

      	Basic quarterly earnings per share	Diluted quarterly earnings per share
      	Yen	Yen
      1Q FY2025/2026	103.10	103.10
      1Q FY2024/2025	111.55	111.55

   2. Consolidated financial position

   	Total assets	Total capital	Equity attributable to equity shareholders of the company	Equity ratio attributable to equity shareholders of the company
   	Millions of yen	Millions of yen	Millions of yen	%
   1Q FY2025/2026	71,541	43,970	43,313	60.5
   FY2024/2025	73,948	43,530	42,901	58.0

2. Cash dividends

   	Annual dividends per share
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   FY2024/2025 FY2025/2026	Yen --- ---	Yen 43.00	Yen ---	Yen 96.90	Yen 139.90
   FY2025/2026 (forecast)		56.00		84.30	140.30

   (Note) Amendment from the most recently announced dividend forecast: No

3. Forecast of consolidated financial results for the year ending June 30, 2026 (From July 1, 2025 to June 30, 2026)

(Percentages indicate year-on-year changes)

(Note) Revisions from the most recently released business forecast: No

※(Note)

1. Significant changes in the scope of consolidation during the cumulative consolidated period for the quarter): No New ⎯ Co. (Company name), Exclusions ⎯ Co. (Company name)

2. Changes in accounting policies, changes in accounting estimates

   ➀ Changes in the accounting policies required by IFRS : No

   ➁ Changes in the accounting policies due to other reasons: No

   ➂ Changes in the accounting estimates : No

3. Number of issued shares (common shares)

   1Q FY2025/2026	17,560,242 shares	FY2024/2025	17,560,242 shares
   1Q FY2025/2026	791,980 shares	FY2024/2025	791,921 shares
   1Q FY2025/2026	16,953,302 shares	1Q FY2024/2025	16,916,460 shares

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

   ➁ Number of treasury shares at the end of the period

   ➂ Average number of shares during the period

   (total up to this quarter)

   ※Review of the attached consolidated quarterly financial statements by a certified public accountant or audit firm : No

   ※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.

   Attached Documents - Table of Contents

   1. Overview of Business Results 2

      1. Overview of business results for the current quarter consolidated cumulative period 2

      2. Overview of financial position for the current quarter consolidated cumulative period 4

      3. Overview of cash flows for the current quarter consolidated cumulative period 4

      4. Future outlook 5

   2. Summary of quarterly consolidated financial statements and major notes 6

      1. Summary of quarterly consolidated statement of financial position 6

      2. Summary of quarterly consolidated statement of profit and loss 8

      3. Summary of quarterly consolidated statement of comprehensive income 9

      4. Summary of quarterly consolidated statement of changes in equity 10

      5. Summary of quarterly consolidated statement of cash flows 11

      6. Notes to the summary quarterly consolidated financial statements 13

(Note on assumption of a going concern) 13

(Segment information) 13

1. Overview of Business Results

(1) Overview of business results for the current quarter consolidated cumulative period

During the current first quarter consolidated cumulative period, the Japanese economy continued on a moderate recovery trend, but the outlook remained uncertain due to, among other things, the impact of rising prices.

In the domestic automobile market, total new vehicle sales decreased to 95.5% (Statistical data of the Japan Automobile Manufacturers Association) as compared to the same consolidated cumulative quarter of the previous fiscal year (hereinafter referred to as "the same quarter of the previous year"). On the other hand, used car registrations and sales increased to 102.3% compared to the same quarter of the previous year, as used car exports remained robust.

Number of units related to domestic distribution of automobiles Units: 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

Against this market backdrop, the Group's performance was as follows: revenue was 35,453 million yen (103.3% compared to the same quarter of the previous year), operating profit was 2,510 million yen (92.1% compared to the same quarter of the previous year). Profit before income taxes was 2,516 million yen (92.7% compared to the same quarter of the previous year), and profit attributable to owners of the parent for the quarter was 1,747 million yen (92.6% compared to the same quarter of the previous year).

Segment results are as follows.

① Domestic automobile-related business

In our core vehicle transportation operations, contracted volumes for new-vehicle transport declined due to weakness in the domestic new-car market and subdued performance by certain manufacturers for whom we provide transport services. We redirected the resulting transport capacity to used-car transportation, increasing contracted volumes in that area. The consolidation of Zero Plus Maintenance Co., Ltd. as a subsidiary in March 2025 expanded vehicle maintenance revenue; together with growth in used-car transport, this largely offset the decline in new-vehicle transport revenue. Nevertheless, total revenue for the domestic automotive-related segment decreased slightly.

On the segment profit side, we pursued cost reductions through route rationalization for vehicle transport. However, to improve transport quality and expand capacity amid a driver shortage, we revised the compensation structure to secure drivers and raised average wage levels from July 2025, which increased labour costs. System-related costs also rose due to investments to promote digitalization and measures to address aging systems. Furthermore, maintenance expenses increased as parts and labour costs for carrier-truck maintenance rose. We also carried out extraordinary maintenance and fire-response work on approximately 50 car carriers, and the resulting downtime during these works led to further increases in vehicle-related costs. As a consequence, the domestic automotive-related segment posted a decline in profit.

As a result, revenue in the domestic automobile-related business was 16,631 million yen (99.6% compared to the same quarter of the previous year), and segment profit was 2,261 million yen (91.0% compared to the same quarter of the previous year).

② Human resources business

In the shuttle services business segment, we revised fees at low-margin sites and improved recruitment and post-hire support for drivers, enabling us to secure new contracts and increase revenue. Revenue in staffing services business rose due to an increase in dispatched drivers.

Segment profit for shuttle services business increased in line with higher revenue. Conversely, staffing services business experienced profit erosion as labour costs rose following expanded hiring of indirect staff and increases in the statutory minimum wage. In addition, we recorded a loss related to our withdrawal from Wnten.com (effective September 30, 2025), which contributed to an overall decline in segment profit.

As a result, revenue in the human resources business was 5,947 million yen (104.2% compared to the same quarter of the previous year), and segment profit was 218 million yen (94.7% compared to the same quarter of the previous year).

③ General cargo business

In transport and warehousing business, revenue rose following the start-up of new warehousing projects. In port cargo handling business, revenue increased as handling volumes grew for biomass fuel and certain customers' cargoes. As a result, the general cargo segment recorded revenue growth.

Segment profit improved driven by higher earnings in both transport & warehousing and port cargo handling business. In addition, rental income increased following contract renewals in the real-estate business, further supporting segment profit growth.

As a result, revenue in the general cargo business was 1,727 million yen (111.1% compared to the same quarter of the previous year), and segment profit was 492 million yen (156.3% compared to the same quarter of the previous year).

④ Overseas-related business

In used-vehicle export business, we implemented tariff adjustments and strengthened arrangements to secure space on car-carrier vessels, which increased export volumes and revenue. In China, vehicle-transport volumes rose as a major customer's newly launched models sold well, driving revenue growth in that market. Consequently, the overseas-related segment posted higher revenue overall.