Basic Management Policy
Our basic management policy
The corporate philosophy of our group is “quality,” that is, to provide our customers with safe, high-quality transportation and services and to contribute to the development of an affluent society by creating services that exceed customer expectations.
Improvement of all types of quality, including financial quality, human quality (human capital), logistics quality, and sales quality, is the foundation of our corporate activities.
In order to build up a firm market position in the vehicle transportation business, our core business, we will not only expand existing businesses but also further develop peripheral businesses, create new businesses and services, and expand into new business areas, with M&A as one of our options.
We are committed to increasing our corporate value through sustainable growth and development, and to becoming a corporate group that continuously earns the trust of society, our customers, and our shareholders.
Management Indicators
The management indicators targeted for FY26 (the fiscal year ending June 30, 2027) , the final year of the medium-term management plan, are as follows, and we are committed to achieving this goal.
Business Environment
The Market Environment
Our Group's main business, the domestic automotive related businesses, are linked to the domestic automobile sales market, which is susceptible to the taxation system of consumption tax, automobile acquisition and retention, and other related taxes.
The new car sales in Japan peaked at 7 million units in the 1990s and has remained stagnant since then. After the turmoil of The COVID-19 pandemic, new car sales in recent years have remained below the 5 million unit level.
Furthermore, the market is declining in the mid- to long-term due to a decrease in the number of driver's license holders caused by population decline and other factors, as well as changes in automobile ownership patterns.
In addition, the logistics industry faces the risk of medium- to long-term crude oil price hikes and rising fuel prices due to the yen's rapid depreciation since 2021, as well as the need to address compliance issues and the labor shortage in Japan, particularly the shortage of drivers. Moreover, we expect the business environment to remain challenging due to the "2024 Logistics Problem" caused by the Work style reform laws and the revision of the Improvement Standards Notification, as well as the increasing burden on companies as wages rise in step with the increase in the consumer price index.
Our Group Structure and Main Services
Our Group consists of ZERO CO., LTD., 20 subsidiaries, and 3 jointly controlled companies, and is mainly engaged in the domestic automotive related businesses, human resources businesses, general cargo businesses, and overseas related businesses.
The domestic automotive business mainly includes transportation of new & used vehicles, motorcycles, and rental construction equipment, pre-delivery maintenance inspections and heavy-duty vehicle maintenance, the operation of bidding auction for lease-up vehicles and trade-in vehicles at automobile dealerships, primarily inspection work and yard operation at car auction sites, and other related activities.
The human resources business includes the operation of automobile fleet management services for hospitals and educational facilities, as well as temporary staffing services, primarily for drivers and warehouse workers.
The general cargo businesses includes port cargo handling, transportation and warehousing, as well as 3PL business for general consumer goods, etc.
The overseas related businesses mainly includes export of used cars and transportation of new cars in China.
Under our Group's unified basic policy, the Board of Directors, each organizations, and each companies combine their businesses with each other to promote the creation of group synergy and efficiency as a comprehensive logistics company and service provider in automotive distribution industry.
Competitive Advantage
Our Group has competitors in each of our segments.
In the vehicle transportation business, which is the main business of the domestic automobile-related business, our Group's nationwide network of land and sea transportation is an advantage because although there are many vehicle transportation companies, they are often unable to handle long-distance transportation.
In addition, the barriers to enter the market are relatively high, as vehicle transportation handles a special kind of cargo, and there are supply constraints on those car carriers.
In the human resource business, the majority of the business is automobile fleet management and driver staffing, which is a structure that more easily generates synergy with our Group.
In the general cargo businesses, we are mainly engaged in the port business, which has high barriers to entry, and the 3PL business, which can take advantage of its regional characteristics.
In the overseas related businesses, the vehicle transportation business in China has the advantage of high transportation quality in accordance with Japanese standards, and the used car export business has concentrated on the region and achieved high customer satisfaction.