Message to Shareholders

Thank you very much for your continued support.
We are pleased to report our business results for the current fiscal year and the upcoming year for the Zero Group.

Message from the new President

We would like to express our sincere gratitude to our shareholders for their continued support.

On July 1, 2024, I succeeded Takeo Kitamura, former President and CEO, as President and CEO.
We will continue to make further efforts and devote ourselves to the development of our company's business, and we look forward to your continued support.
Our company was established in 1961 as Nissan Transportation Co., Ltd. a subsidiary of Nissan Motor Co., Ltd. and progressed with the growth of the Japanese automobile market, becoming independent as ZERO CO., LTD. through a management buyout (MBO) in 2001.
As a result of our efforts to expand not only our core business of vehicle transportation but also peripheral businesses such as yard operation at car auction sites and human resource service business with a focus on drivers, we have achieved our long-held goal of 100 billion yen in group sales in fiscal year 2021.
The theme of our current mid-term management plan, which began this fiscal year, is “Back to Basics, “Quality”.
By thoroughly brushing up all aspects of “quality”, we will provide services that exceed the expectations of all stakeholders and aim to become a comprehensive logistics company and service provider in automotive distribution industry.

FY2023 (Fiscal year ending June 2024) Results Overview

Japan's economy during the current consolidated accounting year was gradually picking up or even recovering, despite some downward pressure from the Noto Peninsula earthquake.
In the domestic automobile market, the total number of new vehicle sales decreased to 97.6% (statistical data from the Japan Automobile Manufacturers Association) compared to the previous consolidated fiscal year (hereinafter referred to as the same period last year).
The Group has been affected by the suspension of shipments due to a series of misconduct at some finished vehicle manufacturers that occurred since the end of 2023.
The number of used vehicle registrations and sales increased to 102.3% compared to the same period last year, owing to the recovery in new vehicle sales in the first half of the year and the strong demand for used vehicle exports due to the weak yen.
Revenues increased mainly in the domestic automobile related businesses. Operating profit also increased, mainly in the domestic automobile-related business.
As a result, the business results of our group are as follows: sales revenue of 140,751 million yen (105.9% compared to the same quarter from the previous year) and operating profit of 6,222 million yen (122.6% compared to the same quarter from the previous year). In addition, the profit before taxes was 6,227 million yen (122.6%compared to the same quarter from the previous year), and the profit of the quarter attributable to the equity shareholders of the company was 4,150 million yen (120.7% compared to the same quarter from the previous year).

Dividends

Since the basic consolidated net income per share for FY2023 was 245.61 yen, in accordance with our profit distribution policy, the annual dividend for the previous year was 61.40 yen (interim 15.00 yen, year-end 46.40 yen).

Outlook for Fiscal Year 2024 (ending June 30, 2025)

In FY2024, we anticipate that revenue from used vehicle exports to Malaysia will stabilize, considering exchange rate trends and local demand. For operating income, it is expected to increase due to the promotion of efficiency improvement in the vehicle transportation business as well as the full-year contribution of the rate revision effect.

The performance forecast June 2025 period is estimated to be 135,000 million yen of sales earnings, 8,100 million yen of operating profits, 8,100 million yen of profit before tax deduction and 5,500 million yen in net income attributable to the equity shareholders of the company.
The dividend payout ratio has been raised from 25% to 33%, and the annual dividend is planned to be 107.40 yen (interim: 43.00 yen, year-end: 64.40 yen).

We sincerely ask for your continued patronage and support in 2024 and beyond.

August 2024 ZERO CO., LTD.
President & CEO Toshihiro Takahashi