Financial Results for the Three-Month Period Ended September 30, 2013
November 14, 2013
Company name: ZERO CO., LTD.
Tokyo Stock Exchange (Second Section)
Code No.: 9028
(URL: http://www.zero-group.co.jp/)
Representative:
Yoshi Iwashita, President and CEO
Contact for inquiries:
Takeo Kitamura, Director
Tel: 044-520-0106
Date of financial report submission
November 14, 2013
Date to begin payment of dividend:－
Additional materials for the financial results for 1Q FY2013
None
Briefing session for the financial results for 1Q FY2013
None

1. Consolidated Financial Results for the Three-Month Period Ended September 30, 2013
(From July 1, 2013 to September 30, 2013)(1) Consolidated Results(Figures less than one million yen are rounded down.)

Percentages shown below are the rates of increase or decrease compared with the same period of the previous year.
Sales
Million yen
Three Months
ended Sep.30,
2013
Three Months
ended Sep.30,
2012(Note)

Operating income%

Million yen

Ordinary income%

Million yen

Net income%%

15,670

9.4

669

121.2

676

108.5

371

135.3

14,329

8.0

302

-33.2

324

-28.6

157

-23.9

Comprehensive income:

FY2013 First quarter 408 million yen (138.8%)
FY2012 First quarter 170 million yen ( -16.3%)
Earnings per share-basic

Earnings per share-diluted

Yen

Yen

Three Month Period Ended Sep.30, 2013

21.73

Three Month Period Ended Sep.30, 2012

9.24

9.21

(2）Consolidated Financial Position
Total assets

Net assets

Shareholders’ equity ratio

Million yen

Million yen％

As of Sep.30, 2013

30,397

13,66645.0

As of Jun. 30, 2013

31,096

13,333

42.9(Ref.)

Million yen

Shareholders’ equity :As of Sep. 30, 2013: 13,666 million yen

1

As of Jun. 30, 2013: 13,333 million yen

2. Dividends
Dividend per share(Record date)

FY2012FY2013
Forecast for
FY2013At end of
1Q
Yen-

At end of
2Q
Yen
4.00

At end of
3Q
Yen-

At end of
4Q
Yen
4.40

Annual
total
Yen
8.40

4.00

-

6.50

10.50

*Revision from the latest dividend forecast: None

3. Consolidated Forecasts for FY2013 (July 1, 2013 through June 30, 2014)
Percentages shown below for whole FY2013 are the rates of increase or decrease compared with the previous year.

Sales
Millionyen
Whole FY2013

62,000%
3.2

Operating income

Ordinary income

MillionMillion

yen
2,200

%
37.5

yen
2,250

%
35.5

Earnings

Net income
Million

%

Yen

25.6

52.65

yen
900

per share -basic(Note) Revision to the latest consolidated forecasts: None

4. Others(1) Changes in important subsidiaries during period (Transfer of particular subsidiary which involves the change of scopeof consolidation.): N/A(2) Application of particular accounting methods for quarterly consolidated financial statements:

N/A(3) Changes in accounting policies, accounting estimates and restatement of corrections① Changes in accordance with the revision of accounting standards and others: N/A② Changes other than above: N/A③ Changes in accounting estimates: N/A④ Restatement of corrections: N/A(4) Number of issued shares (common shares)① Number of issued shares (including treasury stock) at the end of each period:
As of September 30, 2013: 17,560,242

As of June 30, 2013: 17,560,242② Number of treasury stock:
As of September 30, 2013: 467,711

As of June 30, 2013: 467,711③ Average number of shares issued during the first quarter of the fiscal year
FY2013: 17,092,531

FY2012: 17,092,586※Implementation status review procedure
This financial report is exempt from the review procedure based upon the Financial Instruments and Exchange Act. The
financial statements are under the review procedure at the time of disclosure of this report.

2

※Explanation regarding appropriate use of forecasts
Statements in this report relating to future matters such as earnings forecasts are based on information presently available.
Actual results may differ from those forecasts depending on various factors.

1. Qualitative Information(1) Qualitative Information Regarding Consolidated Business Performance
The Japanese economy during the first quarter of fiscal 2013 (referred to as the “current term”) has entered to thephase of weaker yen and higher stock price, resulting in the upward trend in business conditions with the improvementof company revenue mainly in exporting related businesses. However, the prominent improvement in the employment
and income situation in accordance with the economic recovery are not shown so far. Moreover, the production
activities of companies are still under the unstable economical circumstances, owing to the negative impacts fromoverseas such as debt problems in Europe and slowdowns in economic growth in emerging countries.

In the automobile industry, the domestic new car sales in this term increased year-on-year, after 3 consecutive terms ofdecrease, resulted in 102.3 % compared to the corresponding term in the previous year (data from the Japan Automobile
Manufacturers Association). The exporting new car sales also increased, despite the overseas’ economic slowdown,
thanks to the yen depreciation trend and the lessened negative impact from the relationship with China, resulted in
103.6% compared to the corresponding term in the previous year. Although registered units of domestic used cars was
98.3% compared to the corresponding term in the previous year, the exporting used cars remarkably increased, resulted
in 125.0% compared to the corresponding term in the previous year.
Under these circumstances, in respect to our group sales of vehicle-related business in the current term, the new vehicletransportation business increased year-on-year, thanks to the higher new car sales increase of Nissan Motor Co., Ltd., ourmajor customer, than the average sales increase of whole automobile companies. The used car transportation business also
increased owing to the precisely customized transportation services in addition to regional sales promotion activities. As aresult, the sales of vehicle-related business increased year on year. On the other hand, the sales of the general cargotransportation business decreased compared to the corresponding term in the previous year, owing to the closure of
unprofitable business and eliminations and consolidations of business facilities as a result of thorough reviewing of thebusiness structure in the previous term. In the human resources business, despite the uncertainty of future of the economy,
sales increased compared to the corresponding term in the previous year, thanks to steady efforts to develop new sales
regions and customers through strong sales activities and enhanced sales operations, in addition to new business
implementation, such as the dispatching business to light-duty works, to newly developed areas.

3

【Trends in automobile domestic sales】
Domestic sales volume (in units)

From July 2012 to Sep. 2012

From July 2013 to Sep. 2013

Year-on-year

Domestic automakers *1

1,330,587

1,361,622

102.3%(Nissan Motor)*1(163,186)(180,389)(110.5%)60,367

71,237118.0%

955,950

899,99194.1%

661,835

690,405

104.3%

1,617,785

1,590,396

98.3%

78,90164,09981.2%

Export volume (in units)

From July 2012 to Sep.2012

From July 2013 to Sep. 2013

New vehicles of domestic
automakers *1

1,148,355

1,189,331

103.6%(Nissan Motor)*1(166,812)(164,361)(98.5%)

Used passenger vehicles*5

280,780

350,910125.0%New vehicles

Foreign automakers*2
Used vehicles
Passenger vehicles *3
Mini vehicles*4
Total of used vehicles
De-registered vehicles*3

Year-on-year*1: Figures calculated from the statistical data of the Japan Automobile Manufacturers Association*2: Figures calculated from the statistical data of the Japan Automobile Importers' Association*3: Figures calculated from the statistical data of the Japan Automobile Dealers Association*4: Figures calculated from the statistical data of the Japan Mini Vehicles Association*5: Figures calculated from the statistical data of de-registration units for exportation of the Japan Automobile Dealers Association

As a result, sales in the current term were 15,670 million yen (109.4% versus the corresponding term in the previousyear). Operating income was 669 million yen (221.2% versus the corresponding term in the previous year). Non-operating
profit was 7 million yen owing to the decrease of interest cost (35.1% versus the corresponding term in the previous year).
Ordinary income was 676 million yen (208.5% versus the corresponding term in the previous year) and Net income
totaled 371 million yen (235.3% versus the corresponding term in the previous year).

(2) Business Performances by Each Segment(1) Vehicle-Related Business
Domestic new car sales of Nissan Motor Co., Ltd., our major customer, resulted in total sales of 180,389 units, 110.5%
compared to the corresponding term in the previous year, reflecting good sales of newly introduced mini-vehicles.
Exporting vehicle volume slightly decreased, resulting in 164,361 units, 98.5 % compared to the corresponding term in
the previous year. (Data from the Japan Automobile Manufacturers Association)

4

As a result, sales of the Company from Nissan new car transportation business increased. The total transportation of
non-Nissan new cars and used cars also increased compared to the corresponding term in the previous year. The
maintenance business sales increased as well owing to the capacity strengthening of heavy- truck maintenance centers.
Total sales of vehicle-related business marked 12,152 million yen (113.6% compared to the corresponding term in theprevious year). In regard to segment profit, although there was negative impact from the structural change oftransportation model-mix and the short-distance transportation increase, 755 million yen, 136.4% compared to thecorresponding term in the previous year, was achieved by pursuing “transportation quality improvement by reducing
transportation relay points, shorter transportation period and transportation cost reduction” . The vehicle transportation
business is under the severe circumstances with decreasing sales volume of vehicles. The Company is challenging to makestable profits which is less influenced by the market demand through “transportation quality improvement by reducing
transportation relay points, shorter transportation period and transportation cost reduction”(2) General Cargo Transportation BusinessIn this business segment, sales substantially decreased, 1,022 million yen (70.3% compared with the corresponding termin the previous year) owing to the closure of unprofitable business and eliminations and consolidations of businessfacilities as a result of a thorough review of the business structure in fiscal 2012, to deal with the prolonged economic
downturn in home electronics businesses, our major customer. On the other hand, segment profit was remarkably
improved, 142 million yen (457.6% compared to the corresponding term in the previous year). The Company achieved theimprovement of revenue structure by streamlining unprofitable businesses.

(3) Human Resources BusinessIn this business segment, the severity of business environment surroundings remains unchanged reflecting sluggish
customers’ business activities resulting in contract price discount requests, reduction of working hours requests and thecancellation of contract renewals. Despite all these difficulties, sales increased, resulted in 2,568 million yen (114.9%
compared to the corresponding term in the previous year) thanks to steady efforts to develop new sales regions andcustomers through strong sales activities and enhanced sales operations, in addition to new business implementation, suchas the dispatching business to light-duty works, to newly developed areas. The segment profit totaled 134 million yen(129.3% compared to the corresponding term in the previous year), which was achieved by shifting the sales activities tohigher-profitable businesses.

As for unclassifiable operating expenses (company-wide expenses of administrative departments) and the amortizationof goodwill, which are not included in the profit and loss by segment stated above, these were recorded as “elimination”,
which totaled 362 million yen.

5

2. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: million yen)
As of September 30,
2013

As of June 30, 2013
AssetsCurrent assets
Cash and deposits

4,872

4,459

Notes and accounts receivable

6,868

6,864

Inventories

139

147

Deferred tax assets

271

271

Others985

935

Allowance for doubtful accounts

(41)

(89)

13,096

12,589

3,302

3,249

Machinery, equipment and vehicles, net

188

178

Tools, furniture and fixtures, net

66

63

Land

8,373

8,373

Lease assets, net

1,409

1,359

Total tangible fixed assets

13,341

13,224

Goodwill

1,808

1,726

Others

427

469

2,236

2,196

Investment securities

763

800

Long-term loans receivable

105

94

Deferred tax assets

777

744

Others912

884

Allowance for doubtful accounts

(136)

(136)

Total investments and other assets

2,422

2,387

18,00017,80831,09630,397

Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net

Intangible fixed assets

Total intangible fixed assets
Investments and other assets

Total fixed assets
Total assets

6

As of June 30, 2013

As of September 30,
2013

Liabilities
Current liabilities
Notes and accounts payable

3,430

Short-term loans payable

3,477

750

750

1,607

1,548

Income taxes payable

574

274

Accrued consumption taxes

272

281

Allowance for bonus

406

270

Others

2,703

2,523

Total current liabilities

9,745

9,126

Long-term loans payable

2,041

1,834

Allowance for retirement benefits

3,029

2,892

427

393

Long-term loans payable within one year

Fixed liabilities

Allowance for retirement benefits for directors
Differed tax liabilities

76

76

1,088

1,088

41

41

Others

1,311

1,277

Total fixed liabilities

8,016

7,604

17,762

16,731

Capital stock

3,390

3,390

Capital surplus

3,204

3,204

Retained earnings

7,571

7,868

Treasury stock

(152)

(152)

Total shareholders’ equity

14,014

14,310Re-evaluation portion of differed tax liabilities
Asset retirement obligation

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Revaluation reserve for land

15

16

(705)

(705)

Foreign currency translation adjustment

844

Total accumulated other comprehensive
incomeTotal net assets

(681)

(644)

13,333

13,666

Total liabilities and net assets

31,09630,397

7

(2) Consolidated Income Statement and Consolidated Comprehensive Income Statement(Consolidated Income Statement)
First three months of
FY12 (from July 1,
2012 to Sep. 30, 2012)
14,329

Sales(Unit: million yen)First three months of
FY13 (from July 1,
2013 to Sep. 30, 2013)
15,670

Cost of sales

12,68813,440Gross profit

1,640

2,230

Selling, general and administrative expenses

1,338

1,561

302

669

0

0

Operating income
Non-operating income
Interest income
Dividend income

00Receivable commission

17

19

Equity in earnings of affiliates

40

Others23

17

Total non-operating income

47

38Interest expenses

21

20

Others3

10Total non-operating expenses

25

30

324

676

Gain on sale of fixed assets

00

Total extraordinary income

00Loss on sales of fixed assets

00

Total extraordinary losses00

Net income before tax adjustments

324

677

Income taxes

166

305

Net income before adjustment minority interests

157

371

Net income

157

371

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

8

(Consolidated Comprehensive Income Statement)
First three months of
FY12 (from July 1,
2012 to Sep. 30, 2012)
157

Net income before adjustment minority interests(Unit: million yen)First three months of
FY13 (from July 1,
2013 to Sep. 30, 2013)
371

Other comprehensive income
Valuation difference on available-for-salesecurities
Equity of equity-method affiliate

(0)

0

13

35

Total other comprehensive income (loss)

12

36

170

408

170

408

Quarterly comprehensive income(Breakdown)
Parent company portion of comprehensive
income(3) Going concern assumption
None(4) Segment Information
1.

Sales and profit for each reportable segment for the first three months of FY2012 (from July 1, 2012 to September 30,
2012)

Vehicletransportationrelated
Sales(1) Sales forexternalcustomers(2) Internalsales between
business segments
or transfer
Total
Operating income

General cargotransportation

Human
resources(Yen in millions)Elimination and Consolidated
Corporate(Note 2)
(Note 1)

Total

10,686

1,446

2,196

14,329-14,329

8

7

40

56

(56)

-

10,695
553

1,454
31

2,236
103

14,385
688

(56)
(386)

14,329302(Notes)
1. Elimination of -386 million yen includes corporate expense of -304 million yen, goodwill amortization of -82 million
yen and elimination among the segments of 0 million yen. The corporate expense is the expense of the administrative
departments which do not belong to any reported segment.
2. The segment profit is adjusted according to the operating profit in the quarterly consolidated profit and loss
statement.

9

2.

Sales and profit for each reportable segment for the first three months of FY2013 (from July 1, 2013 to September 30,
2013)

Vehicletransportationrelated
Sales(1) Sales forexternalcustomers(2) Internalsales between
business segments
or transfer
Total
Operating income

General cargotransportation

Human
resources(Yen in millions)Elimination and Consolidated
Corporate(Note 2)
(Note 1)

Total

12,145

1,012

2,513

15,670-15,670

7

10

55

73

(73)

-

12,152
755

1,022
142

2,568
134

15,744
1,031

(73)
(362)

15,670669(Notes)
1. Elimination of -362 million yen includes corporate expense of -280 million yen, goodwill amortization of -82 million
yen and elimination among the segments of 0 million yen. The corporate expense is the expense of the administrative
departments which do not belong to any reported segment.
2. The segment profit is adjusted according to the operating profit in the quarterly consolidated profit and loss
statement.
End of document10