Consolidated Results of Operations in First 2 Quarters of Fiscal 2012 and Forecast for Consolidated Results of Operations in Fiscal 2012

Step Up Efforts of Stage I ＜Transition Phase＞ （Fiscal 2010 to Fiscal 2012） of the ''ZENRIN Growth Plan 2013 （ZGP2013）'' Long-Term Management Initiative.

The ''ZENRIN Growth Plan 2013'' Long-Term Management Initiative

Results of Operations in First 2 Quarters of Fiscal 2012
-Considerable Decrease in Sales of Data for Japanese and Overseas In-Car Navigation Systems Due in Part to the Great East Japan Earthquake-

　In the first 2 quarters of fiscal 2012 (from April 1, 2011 to September 30, 2011), the economic environment showed signs of recovery from the severe conditions that resulted from the Great East Japan Earthquake. However, harsh conditions persist, as evident by such factors as prolonged appreciation of the yen and decline in stock prices stemming from uncertainty in the U.S. economy and financial problems in Europe.
　Under such an environment, the Map Database segment made a strong showing in mobile phone services as the number of subscribers increased. However, sales of data for in-car navigation systems declined considerably due to a decrease in the rebound of the subsidies for green vehicles and other additional economic measures implemented in the same period of the previous fiscal year, the Great East Japan Earthquake leading to customers' reduction in production and other factors. The result was net sales of 22,744 million yen (down 10.6% compared to the same period of the previous fiscal year). In terms of income or loss, the drop in net sales resulted in operating income, ordinary income and net income each decreasing.

Results of Operations in First 2 Quarters of Fiscal 2012 and Forecast for Results of Operations in Fiscal 2012, and ZGP2013 Targets for Fiscal 2012

	Results for First 2Qs of FY2012	Compared to First 2Qs of FY2011	Forecast for FY2012	Compared to FY2011	Targets for FY2012
Net sales	22.7 bn yen	(2.7 bn) yen	53.5 bn yen	0.6 bn yen	70.0 bn yen level
Operating income	0.3 bn yen	(1.4 bn) yen	3.0 bn yen	(1.3 bn) yen	10.5 bn yen level
Operating margin	1.3％	(5.6)pt	5.6％	( 2.7)pt	15.0％ level
Ordinary income	0.6 bn yen	(1.2 bn) yen	3.3 bn yen	(1.2 bn) yen	-
Net income	0.2 bn yen	(0.5 bn) yen	1.2 bn yen	(0.8 bn) yen	-

 

Forecast for Results of Operations in Fiscal 2012
-Implement ZGP2013 Measures as Planned Despite Uncertainty of the Impact of the Economic Environment-

　Concerning the forecast for results of operations in fiscal 2012, there is still uncertainty over the economic environment surrounding ZENRIN. Consequently, the forecast for consolidated results of operations in fiscal 2012 remain unchanged from that announced on July 29, 2011.
　In fiscal 2012, which is the final fiscal year of Stage I of ZGP2013, ZENRIN will further promote each of the measures implemented to date as originally scheduled. Specifically, ZENRIN will continue to mount efforts to accomplish ZGP2013, including national expansion of the regional information magazine ''Actiz mi-ru-to'' of the communications media business ''Actiz'' and business expansion through the business and capital alliance with an Indian map company that was conducted as part of the reassessment of our global business.

Returning Income to Shareholders

　Positioning the returning of income to shareholders as a top priority, ZENRIN will raise corporate value by enhancing revenue-generating potential, while adopting a basic policy of realizing stable, uninterrupted payments of dividends based on the medium-term business plan. ZENRIN will therefore make it a goal to maintain a dividend on equity (DOE) on a consolidated basis^*1 of 3% or higher.
　In line with this policy, ZENRIN has declared 14 yen as the interim dividend per share for fiscal 2012. Combined with the 14 yen expected as the year-end dividend, ZENRIN expects an annual ordinary dividend per share of 28 yen for fiscal 2012.

Mapmaking in Areas Affected by the Great East Japan Earthquake

　In September 2011, ZENRIN began the maintenance of maps in areas affected by the Great East Japan Earthquake in earnest. Through mapmaking, ZENRIN hopes to support the recovery of affected areas and keep an account of the recovery as map information.

　ZENRIN would like to achieve sustainable growth as a company that ceaselessly contributes to the good of society based on our corporate philosophy of ''Making a Difference in People's Lives by Creating '4D Geospatial Information''' and kindly asks for the further support of our shareholders.

*1:	Dividend on equity (DOE) on a consolidated basis
	Shareholders' equity is the amount arrived at when the amount of treasury stock is subtracted from the sum total of common stock, capital surplus and retained earnings. DOE = Total amount of dividends ÷ Shareholders' equity

December 2011