ZERO : FY2024 Financial Results

August 7, 2025

Company name: ZERO CO., LTD.

Stock code: 9028 URL https://http://www.zero-group.co.jp/

Representative: President & CEO Toshihiro Takahashi

Stock Exchange Listing: Tokyo

Inquiries: General Manager of Corporate Planning Department Takashi Date (TEL) 044-520-0106 Scheduled Date of Ordinary General meeting of Shareholders: September 26, 2025 Scheduled date to commence dividend payments: September 29, 2025 Scheduled Date for the Submission of Annual Securities Report: September 29, 2025

Preparation of supplementary material on financial results: Yes

Holding of financial results meeting: Yes (For analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the fiscal year ended June 30, 2025 (From July 1, 2024 to June 30, 2025)

   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes)

      Sales revenue

      Operating income

      Profit before tax

      Net Income

      Profit attributable to equity shareholders of the company

      Millions of yen Millions of yen Millions of yen Millions of yen lions of yen %

      Total comprehensive income of the fiscal year

      lions of yen

      FY2024/2025 147,843 5.0 10,228 64.4 10,213 64.0 7,199 71.2 7,179 73.0 7,084 46.5

      FY2023/2024 140,751 5.9 6,222 226 6,227 22.6 4,204 21.7 4,150 20.7 4,837 26.8

      	Basic earnings of this year per share	Diluted earnings of this year per share	Profit ratio attributable to equity shareholders of the company	Total capital profit ratio before tax	Sales revenue operating profit ratio
      	Yen	Yen
      FY2024/2025	423.91		t7.9	14.1	6.9
      FY2023/2024	245.61	—	11.8	9.8	4.4 t

      (Reference) Investment gain / loss through equity method; FY2024/2025:

      million yen,

   2. Consolidated financial position

      FY2023/2024:

      3 million yen

      	Total assets	Total capital	Equity attributable to equity shareholders of the company	Equity ratio attributable to equity shareholders of the company	Equity per share attributable to equity shareholders of the company
      	Millions of yen	Millions of yen	Millions of yen		Yen
      FY2024/2025	73,948	43,530	42,90!	58.0	2,530.56
      FY2023/2024	70,733	37,873	37,209	52.6	2,199.60

   3. Consolidated cash flow position

      	Cash flow from operating activities	Cash flow from investing activities	Cash flow from financing activities	Cash and cash equivalents at end of year
      FY2024/2025	Million yen 12,857	Million yen 836	Million yen H4,606	Million yen 16,643
      FY2023/2024	11,233	63		11,316

      Annual dividends per share

      Total dividends

      Dividend

      Equity dividend

2. Cash dividends

   	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	(Total)	payout ratio (consolidated)	ratio attributable to equity shareholders of the company (consolidated)
   FY2023/2024 FY2024/2025	Yen	Yen	Yen	Yen	Yen	Million yen
   		15.00 43.00		46.40 96.90	61.40 139.90	1,050 2,393	25.0 33.0	2.9 59
   FY2025/2026 (forecast)		56.00		84.30	140.30		33.0

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)

1. 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),

2. Changes in accounting policies, changes in accounting estimates

   O Changes in the accounting policies required by IFRS . No 2 Changes in the accounting policies due to reasons other than Q1 : No O Changes in the accounting estimates No

3. Number of issued shares (common shares)

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

fi Number of treasury shares at the end of the period fi Average number of shares during the period

(total up to this year)

Exclusions Co. (Company name)

(Reference) Summary of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended June 30, 2025 (From July 1, 2024 to June 30, 2025)

1. Non-consolidated operating results (Percentages indicate year-on-year changes)

FY2024/2025

337.28

Non-consolidated financial position

(Reference) Company's Equity

FY2024/2025: 31,292 million yen

FY2023/2024: 27,119 million yen

In the current fiscal year, the Company carried out sales activities with a focus on gross profit in its domestic automotive-related business and continued to implement price revisions from the previous fiscal year. In addition, the compensation for the loss provision recorded in the previous fiscal year due to a fire at the Company's Kawasaki Integrated Logistics Center, was accounted for in the current fiscal year. As a result, there were differences between the actual figures for operating income, profit before tax, and net income for the previous fiscal year and those for the current fiscal year.

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

1. 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.

2. 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 comprehensive income 9

   4. Consolidated statement of changes in equity 10

   5. Consolidated statement of cash flow 11

   6. Notes on consolidated financial statements 13

(Notes on going concern assumption) 13

(Changes in presentation) 13

(Segment information) 13

(Information per share) 15

(Business combination) 16

(Significant subsequent events 17

—l—

1. Summary of operating results

   1. Summary of operating results of the current fiscal period

During the consolidated fiscal year, the Japanese economy showed signs of mild recovery overall, despite some weak trends observed in certain regions.

In the domestic automotive market, the total number of new vehicle sales increased to 104.1% (statistical data of the Japan Automobile manufacturers Association) compared to the previous consolidated fiscal year (hereinafter referred to as the "same period of the previous year"). This increase was driven by the resumption of production for certain vehicle models that had been suspended due to misconduct issues by some automobile manufacturers in the first half of last year, leading to progress in clearing backorders. As a result, the overall domestic sales volume increased. Furthermore, the number of used car registrations and sales also increased to 100.3% compared to the same period of the previous year, as demand for used car exports remained strong.

[Number of units related to domestic distribution of automobiles]

Units: vehicles

Number of registered used cars

%

%

*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

[Fuel retail price]

Unit: Yen / L

*6 Calculated from statistics of Agency for Natural Resources and Energy (fuel used by our company for transport is mainly light oil)

Against the backdrop of these market conditions, the performance of our group resulted in revenue of 147,843 million yen (105.0% compared to the same period of the previous year) and operating profit of 10,228 million yen (164.4% compared to the same period of the previous year). Profit before tax amounted to 10,213 million yen (164.0% compared to the same period of the previous year), and profit attributable to owners of the parent company was 7,179 million yen (173.0% compared to the same period of the previous year).

—2—

The segment business results are as follows.

In our core vehicle transportation business, despite facing the implementation of crew working hour regulations due to the “2024 logistics issue”, we were able to maintain our transportation capacity by promoting a division-of-labor system among crew members, strengthening recruitment, and increasing payment rates to partner companies, thereby maintaining the number of units for transportation contracts. However, we also faced cost increases due to compliance with the 2024 regulations, rising recruitment and labor costs driven by the Consumer Price Index and minimum wage hikes, as well as higher vehicle and maintenance costs for carrier trucks. Under these circumstances, (1) we focused on gross profit-oriented sales activities, such as promoting the acquisition of return cargo in order to effectively utilize its limited transportation capacity and reduce empty return trips; (2) the strong performance of Zero Plus BHS Co., Ltd. and Zero Plus IKEDA Co., Ltd., along with the consolidation of SO-ING Co., Ltd. as a subsidiary, contributed positively; and (3) additionally, transportation fees for both new and used vehicles were gradually increased starting January 2024, further boosting results of profit. Although part of the goodwill for SO-ING Co., Ltd. was impaired due to a divergence from the business assumptions made at the time of acquisition, both revenue and segment profit increased for the domestic automotive-related business overall.

As a result, revenue from the domestic automotive-related business was 69,519 million yen (109.0% compared to the same period of the previous year) and segment profit was 9,047 million yen (129.4% compared to the same period of the previous year).

In the vehicle transportation business, under the medium-term management plan through the fiscal year ending June 2027, we are focusing on the theme of"Returning to the Fundamentals of Quality" We are advancing initiatives such as "Further Responses to the '2024 Logistics Problem'—Reviewing the Role and Operations of Logistics Centers, Securing Transport Capacity," "Reducing and Addressing Accidents and Complaints," and "Promoting Digitalization."

In the shuttle service business, revenue increased as a result of implementing fare revisions at low-profitability locations and improving driver recruitment methods, which enabled successful hiring. This allowed us to secure new contracts and expand vehicle fleets for our Mobility as a Service (MaaS) business. In the human resources services business, revenue also increased due to a rise in the number of dispatched drivers.

The shuttle service and human resources services businesses saw increased profits along with increased revenue, but segment profits declined due to expenses incurred in advance for the new business, Wnten.com, which was launched in March 2023, as well as lower-than-planned results.

As a result, revenue from the Human Resource Business was 23,059 million yen (106.6% compared to the same period of the previous year) and segment profit was 804 million yen (99.2% compared to the same period of the previous year).

/General cargo businesses>

In the transportation and warehousing business, revenue in the transportation section decreased due to a decline in cargo volume handled by major customers and a reduction in subcontracted carriers, influenced by the '2024 logistics issue'. However, the warehousing section saw an increase in revenue, supported by the initiation of new projects. Furthermore, in the port cargo handling business, revenue increased thanks to a rise in the volume of cargo handled for certain customers. As a result, general cargo business overall posted an increase in revenue.

Segment profit rose in the port cargo handling business due to the revenue increase. In the transportation and warehousing business, profit also increased due to factors such as identifying and withdrawing from unprofitable transportation operations, launching new warehouse handling projects, and acquiring new customers, which led to higher warehouse space utilization. Additionally, while in the same period last year the company had recorded a provision for losses due to a fire at the Kawasaki Integrated Logistics Center. However, the compensation for these losses was accounted in the fourth quarter of the current fiscal year, further contributing to increased profit for the general cargo business as a whole.

As a result, revenue from the general cargo business was 6,503 million yen (101.6% compared to the same period of the previous year), and segment profit was 1,961 million yen (248.0% compared to the same period of the previous year).

The used car export business was temporarily forced to limit the number of used cars exported due to the timing of the issuance of used car import permits in Malaysia in the first half of the year,. However, in the second half of the year, used car import permits were issued and a system was established to secure sufficient space on car carrier ships, allowing vehicles that had be stuck in Japan to be shipped, resulting in increased revenue. On the other hand, in China, vehicle transportation business saw a decline in revenue due to a decrease in new vehicle shipments caused by the weak performance of Japanese automobile manufacturers. As a result, total revenue from overseas-related business declined.

Segment profit increased in the used car export business along with revenue. In the vehicle transportation business in China, profit decreased due to the decline in revenue. However, in the same period last year, the company had recorded an impairment loss on its CKD business, so overall segment profit for the overseas-related business increased.

As a result, revenue from overseas-related business was 48,760 million yen (99.6% compared to the same period of the previous year), and segment profit was 892 million yen (1,165.9% compared to the same period of the previous year).

—3—