ZERO : Financial Results for the Second Quarter of FY2025

February 12, 2026

Company name: ZERO CO., LTD. Stock Exchange Listing: Tokyo

Stock code: 9028 URL: 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 of Submission of Semi-annual Report: February 13, 2026

Scheduled date to commence dividend payments: March 13, 2026 Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results meeting: Yes (For analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the second quarter ending of the fiscal year June 30, 2026 (From July 1, 2025 to December 31, 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	%
      2Q FY2025/2026	65,841	△4.5	4,436	△10.4	4,426	△10.5	3,057	△13.1	3,037	△13.3	3,669	6.4
      2Q FY2024/2025	68,956	7.1	4,951	113.9	4,942	112.6	3,519	135.4	3,505	140.0	3,449	129.8

      	Basic quarterly earnings per share	Diluted quarterly earnings per share
      	Yen	Yen
      2Q FY2025/2026	179.11	179.10
      2Q FY2024/2025	207.12	207.10

   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	%
   2Q FY2025/2026	74,841	45,616	44,900	60.0
   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	Yen ---	Yen 43.00	Yen ---	Yen 96.90	Yen 139.90
   FY2025/2026	---	56.00
   FY2025/2026 (forecast)			---	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. Material changes in the scope of consolidation during the current interim period : 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)

   2Q FY2025/2026	17,560,242 shares	FY2024/2025	17,560,242 shares
   2Q FY2025/2026	756,980 shares	FY2024/2025	791,921 shares
   2Q FY2025/2026	16,960,130 shares	2Q FY2024/2025	16,923,109 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)

   ※The second quarter financial results is not within the scope of review 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.

   Attached Documents - Table of Contents

   1. Qualitative Information on This Interim Period Financial Results 2

      1. Explanation of Business Results 2

      2. Explanation of Financial Position and Cash Flows 4

      3. Explanation of Forward-Looking Information such as Consolidated Earnings Forecasts 5

   2. Summary Consolidated Interim Financial Statements and Major Notes 6

      1. Summary Consolidated Interim Statement of Financial Position 6

      2. Summary Consolidated Interim Statement of Profit or Loss 8

      3. Summary Consolidated Interim Statement of Comprehensive Income 9

      4. Summary Consolidated Interim Statement of Changes in Equity 10

      5. Summary Consolidated Interim Statement of Cash Flows 11

      6. Notes to the Summary Consolidated Interim Financial Statements 13

(Notes on going concern assumption) 13

(Changes in presentation method) 13

(Segment information) 13

(Significant subsequent events) 13

1. Qualitative information on This interim Period Financial Results

   1. Explanation of Business Results

      During the current consolidated interim accounting period, Japan's economy remained on a moderate recovery trend despite weak movements in some regions; however, uncertainty about the future continued due to the effects of price increases and the deterioration of Japan-China relations.

      In the domestic automobile market, the total number of new vehicles sales decreased to 96.8% (statistical data of the Japan Automobile Manufacturers Association) as compared to the same interim consolidated accounting period of the previous year (hereinafter referred to as the same interim period of the previous year). On the other hand, used car registrations and sales increased to 100.2% compared to the same interim period of the previous year, as demand for used-car exports remained solid.

      Number of units related to domestic distribution of automobiles Units: vehicles

      Domestic	July of 2024 to December of 2024	July of 2025 to December of 2025	Compared to the previous year
      Number of new vehicles sold Domestic manufacturer *1 (out of this, Nissan *1 Motor) Foreign manufacturer *2 Total of new vehicle sales	2,180,689	2,068,322	94.8％
      	(229,664)	(182,610)	(79.5％)
      	113,315	151,992	134.1％
      	2,294,004	2,220,314	96.8％
      Number of registered used vehicles
      Registered vehicles *3	1,787,325	1,782,598	99.7％
      Light vehicles *4	1,346,340	1,357,693	100.8％
      Total number of used vehicles registered	3,133,665	3,140,291	100.2％

      Export	July of 2024 to December of 2024	July of 2025 to December of 2025	Compared to the previous year
      New vehicles of domestic *1 manufacturers Used vehicles (registered *5 vehicles)	2,199,384	2,126,519	96.7％
      	808,877	827,839	102.3％

      *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, our group's performance was as follows: revenue reached 65,841 million yen (95.5% of the same interim period of the previous year); operating profit was 4,436 million yen (89.6% of the same interim period of the previous year). And profit before tax amounted to 4,426 million yen (89.5% of the same interim period of the previous year); interim profit attributable to owners of the parent company was 3,037 million yen (86.7% of the same interim period of the previous year).

      The segment business results are as follows.

      1. Domestic automotive related businesses

         In our core vehicle transportation business, the number of new-vehicle transportation declined owing to the weak domestic new-vehicle sales market and poor performance by the manufacturers for whom we transport new vehicles. We were unsuccessful in fully shifting the corresponding transportation capacity to used vehicle transportation, resulting in a decrease in the number of used vehicles transported as well. While new vehicle transportation revenue declined due to the decrease in volume, used vehicle transportation revenue increased as a result of higher per-unit rates achieved through sales activities focused on gross profit.

         In automobile peripheral businesses, vehicle maintenance revenue rose following the consolidation of Zero Plus Maintenance Co., Ltd. as a consolidated subsidiary in March 2025. Although used-vehicle transportation and vehicle maintenance recorded revenue increases, they did not fully offset the decline in new-vehicle transportation, resulting in an overall revenue decrease for the domestic automobile-related business.

         Regarding segment profit, cost reductions were pursued by revising vehicle transportation routes; however, costs increased mainly due to as a future investment: (i) higher labour costs resulting from wage level increases implemented from July 2025 to secure crew members; (ii) increased system expenses associated with promoting digitalization and responding to aging systems; as a response to challenges such as the 2024 issue and rising prices, (iii) cost increases resulted from establishing a division of labour system, such as pre-loading vehicles onto car carrier to reduce driver working hours, (iv)higher maintenance costs due to rises in parts prices and labour for carrier truck maintenance, and increased vehicle-related costs from special maintenance carried out in response to carrier truck fires. For these reasons, the domestic automobile-related business as a whole recorded a decrease in profit.

         As a result, revenue for the domestic automobile-related business was 33,113 million yen (97.9% of the same interim period of the previous year), and segment profit was 4,195 million (89.0% of the same interim period of the previous year).

      2. Human resource businesses

         In the shuttle/transportation business, revenue increased because we implemented fare revisions at low-profit sites and reviewed driver recruitment methods and post-hire follow-up systems, enabling us to win new contracts. In the staffing services business, revenue increased due to an increase in the number of dispatched drivers.

         Regarding segment profit, the shuttle/transportation business recorded higher profit with increased revenue, while the staffing services business experienced a decline in profit due to increased labor costs from minimum wage hikes and hiring of indirect staff. Consequently, the overall human resources business also saw decreased profits.

         As a result, revenue for the human resources business was 11,943 million yen (103.6% of the same interim period of the previous year); and segment profit was 425 million yen (94.8% of the same interim period of the previous year).

      3. General cargo business

         In the transport and warehousing business, revenue increased thanks to the launch of new warehouse projects. In the port cargo handling business, although handling volumes decreased in automobile categories, increases in handling volumes for biomass fuel and for certain customers led to overall revenue growth; consequently, the general cargo business as a whole saw an increase in revenue.

         Segment profit increased due to higher revenues in both transport & warehousing business and port cargo handling business, and additionally rental income increased in the real estate business due to contract renewals, resulting in higher profit for the General Cargo business as a whole.

         As a result, revenue for the general cargo business was 3,422 million yen (106.0% of the same interim period of the previous year); and segment profit was 937 million yen (128.9% of the same interim period of the previous year).

      4. Overseas Related Businesses

In the used-vehicle export business, despite implementing price revisions and establishing a system to secure sufficient car-carrier ship slots, shipments were pushed into the second half due to timing of the issuance of import