Translation
January 30, 2020

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2020
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Yutaka Nagao, President
Atsushi Kashimoto, Senior Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
February 12, 2020
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are rounded down.)

1.

Consolidated financial results for the third quarter of fiscal year 2020
(cumulative: from April 1, 2019 to December 31, 2019)(1) Consolidated operating results

For the nine months ended
December 31, 2019
December 31, 2018
(Note) Comprehensive income:(Percentages represent year-on-year changes.)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of the Parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
1,257,724
0.0
50,077(32.6)
46,830(36.4)
31,406(27.3)
1,257,610
7.3
74,343131.4
73,644127.5
43,194147.8
For the nine months ended December 31, 2019:
32,405 million yen ((21.5) %)For the nine months ended December 31, 2018:
41,264 million yen (68.1 %)Basic earnings per share

For the nine months ended
December 31, 2019
December 31, 2018

Diluted earnings
per share

Yen
79.66
109.55Yen——(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
December 31, 2019
1,161,765
593,459
50.4
March 31, 2019
1,123,659
573,388
50.4(Reference) Equity:
As of December 31, 2019: 585,585 million yen As of March 31, 2019: 565,841 million yen

2.

Dividends
First quarter
Yen——

Second quarter
Yen
14.00
15.00

Annual dividends
Third quarter
Yen——

Fiscal 2019
Fiscal 2020
Fiscal 2020 (Forecast)(Note) Revisions to the forecasts most recently announced: Yes
Breakdown of year-end dividends in fiscal year ending March 31, 2020 (forecast):

Fiscal year-end
Yen
14.00

Total

26.00
Ordinary dividends:
16.00 yen
Commemorative dividends: 10.00 yen

Yen
28.00
41.00

3.

Consolidated earnings forecasts for fiscal year 2020 (from April 1, 2019 to March 31, 2020)
Operating revenue

Operating profit

Millions of yen%
Millions of yen%
Full year
1,630,000
0.3
40,000 (31.4)(Note) Revisions to the forecasts most recently announced: Yes(Percentages represent year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of the Parent
per share
Millions of yen%
Millions of yen%
Yen
37,000 (31.8)
20,000 (22.1)
50.86* Notes(1) Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements (Application of specific accounting for preparing the quarterly consolidated financial statements)” of the attached materials
to the quarterly financial results report on page 13.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Yes
b. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements (Changes in accounting policies)” of the attached materials to the quarterly financial results report on page 13.

(4) Number of issued shares (common shares)
a. Number of issued shares as at the end of the period (including treasury shares)
As of December 31, 2019:
411,339,992 shares
As of March 31, 2019:
411,339,992 sharesb. Number of treasury shares as at the end of the period
As of December 31, 2019:17,065,974 shares
As of March 31, 2019:17,065,526 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2019:394,274,306 shares
For the nine months ended December 31, 2018:394,275,213 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various
reasons. For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of
Accounts for the Nine Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements” of the attachedmaterials to the quarterly financial results report on page 8.
• The Company plans to hold a financial results meeting for analysts on January 31, 2020. The materials distributed at this financial resultsmeeting shall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index
1. Qualitative Information on Settlement of Accounts for the Nine Months................................................................. 2(1) Explanation of operating results ...................................................................................................................... 2(2) Explanation of financial position ...................................................................................................................... 8(3) Explanation of consolidated earnings forecasts and other forward-looking statements .................................. 8
2. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 9(1) Consolidated balance sheet ............................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income .......................... 11
Consolidated statement of income (cumulative) ............................................................................................ 11
Consolidated statement of comprehensive income (cumulative) .................................................................. 12(3) Notes to consolidated financial statements ................................................................................................... 13(Notes to premise of going concern) ............................................................................................................. 13(Notes on significant changes in the amount of shareholders’ equity)........................................................... 13(Application of specific accounting for preparing the quarterly consolidated financial statements) ............... 13(Changes in accounting policies)................................................................................................................... 13(Segment information, etc.) ........................................................................................................................... 13(Important subsequent matters) .................................................................................................................... 15
3. Supplementary Information .................................................................................................................................. 18
Operating revenue by business............................................................................................................................ 18-1-

1. Qualitative Information on Settlement of Accounts for the Nine Months(1) Explanation of operating results
During the nine months ended December 31, 2019, the economic environment was plagued by ongoing
uncertainties ahead due to factors that have included effects of political trends overseas, yet economy has
been gradually recovering amid underlying strengths in corporate earnings. Moreover, the logistics industry
continues to face a severe business environment due to an upward trend with respect to small parcel amountby expansion of the e-commerce market brought about by rapidly changing styles of consumption andtightening of the domestic labor market.
Under such circumstances, the Yamato Group has been striving to enhance its management foundations inorder to continue achieving sustainable growth and thereby enable the Group to keep providing high-quality
services based on “KAIKAKU 2019 for NEXT100” medium-term management plan, which while “Work Style
Reform” is centered on management, focuses on reforms in the three areas of “structural reform in the Delivery
Business,” “reform of revenue and business structure geared to achieving discrete growth,” and “reform ofGroup management structure geared to achieving sustainable growth.”
In the Delivery Business, we worked to strengthen cost controls while engaging in adequate pricing initiatives
and promoting sales to new customers in order to regain profitability.
In the non-delivery businesses, we took steps to expand our existing service offerings by making the best useof the strengths of the Group companies, while also strengthening account management on a Group-wide basis
as we aggressively promoted solution sales for addressing customers’ business challenges.
Our consolidated financial results for the nine months ended December 31, 2019 are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of the Parent

For the nine months ended
December 31, 2018
1,257,610
74,34373,644

For the nine months ended
December 31, 2019
1,257,724
50,077
46,83043,194

31,406

ChangeGrowth (%)

113(24,266)(26,814)0.0(32.6)(36.4)(11,787)(27.3)As mentioned above, operating revenue amounted to 1,257,724 million yen, up 113 million yen from theprevious year. This is largely attributable to an increase in the TA-Q-BIN unit price, amid promotion of structuralreforms in the Delivery Business. Operating expenses amounted to 1,207,647 million yen, up 24,379 million
yen from the previous year. This is largely attributable to an increase in personnel expenses and despite adecrease in commission expenses, mainly as a result of having increased the workforce looking toward building
collection and delivery structure.
As a result, operating profit amounted to 50,077 million yen, down 24,266 million yen from the previous year.
Ordinary profit amounted to 46,830 million yen, down 26,814 million yen from the previous year, mainly as aresult of an increase of 2,367 million yen in share of loss of entities accounted for using equity method due toimpairment of goodwill relating to the affiliates overseas.
As a result, profit attributable to owners of the Parent amounted to 31,406 million yen, down 11,787 million yen
from the previous year.
Initiatives for the entire Yamato Group① The Yamato Group has been taking steps on a Group-wide basis to develop a vibrant working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Work Style
Reform” established in Yamato Transport Co., Ltd., and its “Working Styles Innovation Committees” in its
respective Group companies, as a means of placing utmost priority on “Work Style Reform” in order topractice “Inclusive Management,” a Yamato Group founding principle. Moreover, we have been pursuing
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②

③

④

⑤

our “Value Networking” design, on the basis of creating business models for generating a high level ofadded value through the combined efforts of our respective businesses, while at the same time
contributing to growth strategies and international competitiveness of the Japanese economy. Meanwhile,
we are also taking steps to forge a robust corporate culture that acts as a foundation for business creationand development.
We continued to drive initiatives for a robust corporate culture. We worked on enhancing efficiency andcredibility in operations, by improving our transport structure and digital technologies to enable visualmonitoring of operating amount. We actively engaged in ESG-related initiatives for achieving sustainablegrowth, which has involved implementing safety and environmental measures, undertaking efforts toprosper communities, and taking drastic and comprehensive measures to rebuild Group governance.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we have been making effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Okinawa International Logistics Hub,” and respective
gateways linking major cities in the Kanto, Chubu, and Kansai regions, in addition to our existing “last one
mile” network, and have been striving to strengthen account management on a Group-wide basis.
In our business looking toward global markets, we have been working to collaborate among five regions,Japan, East Asia, South East Asia, Europe and the Americas. Meanwhile, we have also beenstrengthening our capabilities in each geographic region to respond to the growth of cross-border logistics,
and have also been taking steps to strengthen management of our businesses that involve global
operations. In addition, we have been actively promoting efforts to build cross-border networks thatprovide substantial added value by leveraging our certification under international standards pertaining tosmall parcel chilled and frozen goods delivery services, such that has already been acquired by eight
Yamato Group companies.
With the aim of improving customer convenience particularly in the e-commerce market, we have been
continuously working to establish an environment that ensures customers ease in picking up and sending
their parcels. We have been actively promoting efforts to build an open-type network of parcel lockers, andhave worked on other efforts for the development of next-generation logistics services including utilizationof automated driving technologies. Moreover, in order for addressing social issues such as the intensifying
labor shortage, and better responding to the rapidly expanding e-commerce demand, we have been
engaging in streamlining collection and delivery, labor operations and administrative tasks by promoting
digitization of our overall logistics operations, and in carrying out structural reform of trunk-routetransportation for the purpose of optimizing the entire network for streamlining transportation.

Summary of each operating segment

 Delivery
The delivery amount of TA-Q-BIN and Kuroneko DM-Bin services are as follows.
(Million parcels / units)
Category
TA-Q-BIN
Kuroneko DM-Bin

For the nine months ended
December 31, 2018
1,400
926

For the nine months ended
December 31, 2019
1,390
761

Change(10)(164)

Growth (%)(0.7)(17.7)① In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
② We continued to encounter a severe business environment due to an upward trend with respect to small
parcel amount by expansion of the e-commerce market brought about by rapidly changing styles ofconsumption and tightening of the domestic labor market. Under those circumstances, during the ninemonths ended December 31, 2019, we worked to strengthen cost controls while engaging in adequate
pricing initiatives and promoting sales to new customers in order to regain profitability, amid somewhat
sluggish freight movement brought about by factors such as a slowdown in personal consumption due toeffects of Japan’s consumption tax hike. In addition, we have been engaging in streamlining collection anddelivery, labor operations and administrative tasks by promoting digitization of our overall logistics

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③

④

⑤

⑥

operations, and in carrying out structural reform of trunk-route transportation for the purpose of optimizing
the entire network for streamlining transportation.
In the growing e-commerce market, we have been expanding sales of the “TA-Q-BIN Compact” and“Nekopos” services which enable customers to send small parcels simply in respond to diversifying needsbrought about by changing customer lifestyles, and have proceeded with offering a greater number ofdrop-off points for sending parcels by collaborating with multiple flea market websites. During the ninemonths ended December 31, 2019, we have been continuing to work in conjunction with flea market
websites and e-commerce companies to provide greater convenience by developing a service
environment where individual customers ship merchandise easily from convenience stores and PUDO
station open-type parcel lockers, and offering a service environment enabling customers who havepurchased a product to specify either a TA-Q-BIN Center, convenience store or PUDO station as alocation for pick-up. As for individual customers, we promoted efforts to increase sales of services enablingcustomers to complete TA-Q-BIN sending procedures using their smartphones, and providing them withaccess to features such as online payment settlement and anonymous delivery.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. During the nine months ended December 31, 2019, we
have been continuing to strengthen account management in coordinated efforts of the Group, andboosting profitability by making proposals that provide high added value using the Group’s businessresources.
We have been taking steps to improve services for residents geared toward resolving issues facing
communities. In part, this has involved collaborating with numerous municipalities and companies in efforts
that entail helping those who have difficulties doing their shopping and helping to watch over elderly
residents. Moreover, we have also been helping to revitalize local industry particularly through initiatives
that involve supporting tourism and helping to expand sales channels for locally produced products.
Operating revenue amounted to 1,016,547 million yen, up 1.0% from the previous year owing to a higher
TA-Q-BIN unit price amid promotion of structural reforms in the Delivery Business. Operating profit
amounted to 34,806 million yen, down 41.4% from the previous year mainly due to an increase inpersonnel expenses and despite a decrease in commission expenses.

 BIZ-Logistics① In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
② For e-commerce, we are offering various one-stop services including placing and accepting orders, visualmonitoring of inventories for customers and enabling speedier shipments. Moreover, we have been
providing services to medical device-related business operators that help such customers revolutionize
logistics through our comprehensive support extending beyond delivery to encompass cleaning,
maintaining and relending surgical equipment returned by hospitals. During the nine months ended
December 31, 2019, we promoted efforts to increase sales of this service, particularly among our existingcustomers.
③ Operating revenue amounted to 108,303 million yen, down 5.0% from the previous year mainly as a resultof maintenance and recall services falling back from the previous fiscal year. Operating profit was 4,123
million yen, up 32.2% from the previous year mainly as a result of overhauling distribution centers.

 Home Convenience① Given the situation where there were inappropriately billings to corporate clients for moving-related
services provided to their employees, Home Convenience Business continued to take steps to prevent a
recurrence of such incidents through efforts that have included fundamentally overhauling the moving
business and revamping product design. During the nine months ended December 31, 2019, we havebeen working to heighten quality of our new moving-related services for single people, which we started
providing to individual customers in September.

-4-② Operating revenue amounted to 20,876 million yen, down 18.6% from the previous year. The decrease
was due to having stopped moving-related services. As for profits, the segment posted an operating lossof 7,656 million yen.

 e-Business① In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively developing solution platform business that combines logistics technology
and financial technology with information technology to accelerate growth of the Yamato Groupbusinesses. In addition to the conventional information technologies, we are promoting use of emerging
technologies that harness artificial intelligence (AI), the Internet of things (IoT) and other such innovations.
② We have been offering the “Certified Web Retrieval Service” for the financial industry which enables
subscribers to safely and simply submit documentation. The service helps our customers streamline theiradministrative operations by enabling service subscribers to use their smartphones, personal computersand other such devices to upload identification papers and other documents necessary when completing
application processes. During the nine months ended December 31, 2019, we began offering the“Multi-value Charge Service” which facilitates payments to individuals from business enterprises involved
in second-hand item purchasing and e-commerce returned merchandise, and accordingly enables suchindividuals to receive cashless payments in the form of e-money and other options of their choice.
③ Operating revenue amounted to 22,805 million yen, up 13.8% from the previous year mainly generated
from our outsourcing services that have in part involved establishing systems for cashless reward point
operations accompanying Japan’s consumption tax hike, and also due to progress achieved with respect
to expanding sales of our “IT Asset Management Optimization Service” involving total support
encompassing everything from equipment procurement to asset management of personal computers andother information technology assets. Operating profit was 8,591 million yen, up 22.3% from the previous
year.

 Financial① In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
② With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the nine months ended December 31, 2019, we have been
taking steps to expand sales of our “Raku-uru Cart” service. This service helps business operators newly
enter the e-commerce market, which is necessary for expansion going forward, by providing one-stop
support in terms of shopping cart function, payment settlement and delivery services. Moreover, withrespect to our “Kuroneko Pay After Delivery Services,” we have been taking steps to expand sales of the“smartphone-based payment” feature that enables users to select from various payment options displayedon their smartphone device after having received products, which is in addition to the already available“payment slip-based payment” feature whereby a payment slip is sent by postal mail to the customer who
has made a purchase.
③ Operating revenue amounted to 58,275 million yen, down 3.9% from the previous year mainly due to adecrease in “TA-Q-BIN Collect” delivery amount due to a shrinking market for cash-on-delivery brought
about by changing payment settlement needs, and despite increases in the use of our “Kuroneko Web
Collect” and “Kuroneko Pay After Delivery Services.” Operating profit amounted to 4,973 million yen, down
11.7% from the previous year.

 Autoworks① In the Autoworks Business, we provide value to logistics operations and logistics service providers in theform of “improvement of vehicle maintenance convenience” and “reduced maintenance expenses,” as well
as services that help our customers improve their asset utilization ratios, by adding options of “maintaining-5-and safeguarding logistics facilities and equipment, and improving such workplace environments,” alongwith “offering insurance plans tailored to customer risk management needs” which provide coverage forsuch assets.
② During the nine months ended December 31, 2019, we achieved greater use of maintenance services asa result of having carried out initiatives to increase sales of such services through close communication
with customers.
③ Operating revenue amounted to 18,838 million yen, down 3.2% from the previous year mainly as a resultof a decrease in fuel sales volume. Operating profit amounted to 3,563 million yen, down 1.5% from theprevious year.

 Other① The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-amount delivery. In the nine months ended December 31, 2019, service use grewsteadily due to favorable results with respect to existing services.
② Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
decreased 4.5% from the previous year to 1,679 million yen.
ESG Initiatives① The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. Accordingly, its transport safety management practices in that regard involve drawing up its
Safety Management Regulations, building up its transport safety management systems, and formulating
fiscal year plans, all centered on respective Group companies whose main operations involve transport.
During the nine months ended December 31, 2019, Yamato Transport Co., Ltd. held the “9th Nationwide
Safety Competition” and engaged in efforts to heighten safety awareness and improve driving skills. In
addition, since 1998 we have been holding our “Safety Classes for Children,” through which we convey
the importance of traffic safety, in day care facilities, kindergartens and elementary schools across Japan.
A total of about 3.39 million people have now participated.
② In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on the Group-wide initiatives with respect to “Work Style Reform” throughdeveloping a vibrant working environment which is more “employee-friendly” and “rewarding” foremployees, such as promoting reviewing our management rules on working hours and creating newworking styles for our employees.
③ The Yamato Group will continue to carry out drastic and comprehensive measures to rebuild Group
governance, with the aim of enhancing sound Group management, with efforts being spearheaded by our“Group Governance Project.” During the nine months ended December 31, 2019, we continued to
implement ethics education for all of our employees in order to foster a sense of ethics throughout theGroup, further instill our corporate philosophy, and promote such practices in our operations. We also took
steps to develop personnel who are responsible for enhancing compliance at our respective Group
companies.
④ The Yamato Group recognizes climate change, air pollution, decrease of resources, and loss of
biodiversity as important issues to address in order to realize a sustainable society. We have been
implementing measures to address climate change by shifting to use of vehicles that produce lower
carbon dioxide emissions, introducing small commercial-use EV trucks to our fleets, and handlingcollection and delivery in a manner that does not involve use of automobiles. We also hold “Kuroneko
Yamato Environmental Class” sessions designed to provide support for environmental education ofchildren who will bear responsibilities of the next generation. We have held such classes on an ongoingbasis nationwide since 2005, attracting about 250 thousand participants so far.
⑤ Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on the concept of “Creating Shared Value (CSV).” During the nine months ended
December 31, 2019, we promoted our “combined passenger-cargo” operations using scheduled-route-6-

passenger buses and railways, thereby helping to improve lifestyle services for local residents by keeping
scheduled bus and railway networks running in hilly and mountainous areas where populations aresubstantially declining and getting older, and also by streamlining distribution in those locations. With theaim of stimulating the economies of local regions while improving convenience for tourists, particularly forthe increasing numbers of overseas visitors, etc., we promoted initiatives involving our hands-free travel
service which has entailed expanding our offerings to include baggage check services and same-day
delivery of tourists’ luggage to their lodging facilities. For residents in suburban areas which are
undergoing changes with respect to people’s life stages, we have been providing support for community
development geared to ensuring that local residents are able to lead comfortable lives. Our efforts have
involved helping to revitalize local communities where we have our business locations, and providing such
residents with lifestyle support services that include handling shopping and housekeeping on their behalf.
We have been working with government bodies in efforts geared to revitalizing communities and resolving
issues by leveraging the Yamato Group’s management resources with respect to initiatives that include
helping to watch over elderly residents, supporting tourism, and expanding sales channels for locally
produced products in respective regions throughout Japan. The number of the Yamato Group’s initiatives,
including the ones under discussion, totaled 1,075.
⑥ Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people can freely
enjoy a lifestyle as a member of each community. Specifically, we engage in ongoing programs that
support economic independence of people with disabilities, such as actively employing them at the Swan
Bakery which makes and sells bread, providing them with workplaces through the consigned delivery of
Kuroneko DM-Bin, and operating job-finding support facilities where they take part in training to acquire
skills and knowledge necessary for employment.

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(2) Explanation of financial position
Total assets were 1,161,765 million yen as of December 31, 2019, up 38,106 million yen from the end of theprevious fiscal year. The increase was largely attributable to a 63,364 million yen increase in notes andaccounts receivable - trade, despite a 23,188 million yen decrease in cash and deposits.
Liabilities increased 18,035 million yen to 568,306 million yen from the end of the previous fiscal year. The
major factors in this were increases in notes and accounts payable - trade of 17,581 million yen, accrued
expenses of 10,174 million yen and borrowings of 9,200 million yen, despite a decrease in provision forbonuses of 22,547 million yen.
Total net assets were 593,459 million yen, up 20,070 million yen from the end of the previous fiscal year. Thiswas mainly attributable to an increase in retained earnings of 19,152 million yen due to the recording of profit
attributable to owners of the Parent of 31,406 million yen and payment of dividends of surplus of 11,433 million
yen.
Accordingly, the equity ratio was at the same level as in the previous fiscal year at 50.4%.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Going forward, the economic environment is likely to be plagued by ongoing uncertainties ahead due to factors
such as effects of political trends overseas, yet economy has been gradually recovering amid underlying
strengths in corporate earnings. Moreover, the logistics industry is expected to continuously face a severebusiness environment due to an upward trend with respect to small parcel amount by expansion of the
e-commerce market brought about by rapidly changing styles of consumption and tightening of the domestic
labor market.
In that environment, the Yamato Group placed a management focus on “Work Style Reform” and endeavoredto improve and develop the working environment, while in the Delivery Business promoting its “structuralreforms in the Delivery Business.” Also, we have been working on efforts that involve engaging in adequate
pricing initiatives and increasing delivery amount, although increasing delivery amount is likely to take moretime than had been anticipated given somewhat sluggish freight movement. Meanwhile, we have been striving
to expand our revenue base by strengthening account management on a Group-wide basis and promoting
solution sales geared toward addressing customers’ business challenges. As for expenditures, we have beenworking toward enhancing cost controls in line with operating amount despite the likelihood of increases inoutlays associated with our reform initiatives. The consolidated earnings forecasts reflect the effects of thecurrent suspension of moving-related services by our consolidated subsidiary Yamato Home Convenience Co.,Ltd.
The Yamato Group has made changes to the consolidated earnings forecasts for the full year of the fiscal year
ending March 31, 2020 since the announcement made on October 31, 2019.

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2. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits

195,954

172,766

Notes and accounts receivable - trade

220,159

283,524

Accounts receivable - installment

44,802

46,895

Lease receivables and investments in leases

54,53754,165Merchandise and finished goods

642

519

Work in process

194

244

Raw materials and supplies

2,410

2,038

Other

33,03235,264

Allowance for doubtful accounts(1,475)(1,552)

Total current assets

550,258

593,866

352,141

361,014

Accumulated depreciation(204,191)(206,705)

Buildings and structures, net

147,950

154,309

Non-current assets
Property, plant and equipment
Buildings and structures

Vehicles

208,031

215,933(183,835)(192,330)

24,19523,603

Land

175,995

175,305

Leased assets

31,53732,177

Accumulated depreciation
Vehicles, net

Accumulated depreciation(9,531)(9,810)

Leased assets, net

22,00622,367

167,940

158,327(109,170)(108,889)

Other
Accumulated depreciation
Other, net

58,76949,437428,918

425,022

20,624

20,973

Investment securities

54,01350,982

Other

70,84772,043

Allowance for doubtful accounts(1,002)(1,122)

Total investments and other assets

123,858

121,903

573,401

567,899

1,123,659

1,161,765

Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-9-

(Millions of yen)
As of March 31, 2019

As of December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade158,938

176,519

Short-term borrowings

60,80075,500

Lease obligations

2,791

3,218

Income taxes payable

23,74718,099Deferred installment income

5,341

5,031

Provision for bonuses

35,844

13,296

Other

122,961

138,572

Total current liabilities

410,423430,237

Bonds payable

10,00010,000Long-term borrowings

19,50014,000

Lease obligations

20,142

21,383Retirement benefit liability

74,50876,120Non-current liabilities

Other

15,696

16,565

Total non-current liabilities

139,847

138,069

550,270

568,306

Share capital

127,234

127,234

Capital surplus

36,81336,813Retained earnings

431,497

450,650

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(39,085)(39,086)

Total shareholders’ equity

556,459

575,611

12,975

13,630Foreign currency translation adjustment(515)(1,646)

Remeasurements of defined benefit plans(3,078)(2,010)Total accumulated other comprehensive income

9,381

9,973

7,547

7,873

573,388593,459

1,123,659

1,161,765

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2018

For the nine months ended
December 31, 2019

Operating revenue

1,257,610

1,257,724

Operating cost

1,143,652

1,163,282

Operating gross profit

113,958

94,441

Selling, general and administrative expenses

39,61544,364

Operating profit

74,34350,077

Interest income

109

124

Dividend income

854

893

Other

897

794

Total non-operating income

1,861

1,812

Non-operating income

Non-operating expenses
Interest expenses

191

331

Share of loss of entities accounted for using equity method

1,445

3,812

Other

922

916

Total non-operating expenses

2,559

5,059

73,644

46,830Gain on sales of non-current assets

5

7,920

Gain on sales of investment securities

37―

Total extraordinary income

42

7,920

Loss on retirement of non-current assets

197

253

Impairment loss

1,025

696

Ordinary profit
Extraordinary income

Extraordinary losses

Loss on valuation of investment securities

23

0

Other

2

73

1,248

1,023

Profit before income taxes

72,43853,727

Income taxes

29,02722,095

ProfitTotal extraordinary losses

43,41031,631

Profit attributable to non-controlling interests

215

224

Profit attributable to owners of the Parent

43,194

31,406- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2018

For the nine months ended
December 31, 201943,41031,631

Valuation difference on available-for-sale securities(1,793)1,112

Foreign currency translation adjustment(593)(1,131)Remeasurements of defined benefit plans, net of tax

240

1,066

Share of other comprehensive income of entities accounted
for using equity method

(0)

(274)

(2,145)774

41,26432,40541,08731,999177

405

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the Parent
Comprehensive income attributable to non-controllinginterests- 12 -

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Application of specific accounting for preparing the quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the third quarter under review.
(Changes in accounting policies)
The Group has applied IFRS 16 Leases to some of its overseas consolidated subsidiaries effective from the
beginning of the first quarter of the fiscal year ending March 31, 2020, and as such generally recognizes allleases of a lessee as assets and liabilities. In its application of the accounting standard, the Group has adopted
an approach that involves recognizing the cumulative effect of applying the accounting standard at the date ofits initial application, as a transitional measure.
In addition, the effect of this application on quarterly consolidated financial statements is immaterial.
(Segment information, etc.)[Segment information]
I

For the nine months ended December 31, 2018

1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

1,006,762

114,037

25,63820,03760,60950,117

9,543

10,42130,882

2,179

1,056,879
59,427

123,580
3,119

36,059(6,609)50,9197,026

62,788
5,634

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

DeliveryOperating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment profit (loss)

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
19,451
11,074
1,257,610―
1,257,610(2) Inter-segment operating revenue or
24,92739,508167,580(167,580)―
transfers
Total
44,37950,583
1,425,191(167,580)
1,257,610
Segment profit (loss)
3,618
19,31991,536(17,193)
74,343
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services, etc.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 18,593 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. An adjustment was made between segment profit and operating profit in the consolidated statement of income.

2. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
In the Home Convenience segment, the Company has decreased the book value of an asset group withdiminished profitability to the recoverable value, and has accordingly recorded an impairment loss of 897
million yen for the nine months ended December 31, 2018.

- 13 -

II

For the nine months ended December 31, 20191.

Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

1,016,547

108,303

20,87622,80558,27543,427

9,116

9,234

33,4182,115

1,059,975
34,806

117,420
4,123

30,110(7,656)56,224
8,591

60,390
4,973

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

DeliveryOperating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment profit (loss)

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
18,83812,076
1,257,724―
1,257,724(2) Inter-segment operating revenue or
24,63058,446
180,389(180,389)―
transfers
Total
43,46970,523
1,438,114(180,389)
1,257,724
Segment profit (loss)
3,563
36,542
84,943(34,866)
50,077
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services, etc.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 36,523 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. An adjustment was made between segment profit and operating profit in the consolidated statement of income.

2.

Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
Descriptions are omitted, as the value is immaterial.

- 14 -(Important subsequent matters)(Transactions, etc. under common control)
At its meeting held on January 23, 2020, the Board of Directors resolved to reorganize the Company’s
management structure from that of a pure holding company to that of an operating company, upon
conducting an absorption-type merger and absorption-type company split involving eight consolidated
subsidiaries, including Yamato Transport Co., Ltd., on April 1, 2021.
1. Overview of transactions(1) Absorption-type merger in which the Company is the surviving company
a. Names, and contents of businesses, of the companies involved in the business combinationi. Surviving company
Name:
Yamato Holdings Co., Ltd. (the Company)
Content of business:
Holding of shares in operating companies, business management, andoperations incidental thereto
ii. Disappearing company
Name:
Yamato Transport Co., Ltd.
Content of business:
Small parcel delivery services for the general public and corporations(TA-Q-BIN, Kuroneko DM-Bin, etc.)
Name:
Content of business:

Yamato Global Express Co., Ltd.
Small parcel delivery services for corporations (domestic air cargotransport business, etc.)

Name:
Content of business:

Yamato Logistics Co., Ltd.
Logistics services for corporations (total support services including
logistics, medical products distribution services, maintenance support
service, and recall support service)

Name:
Content of business:

Yamato Global Logistics Japan Co., Ltd.
International air cargo service, handling of marine cargo, import/export
customs clearance services, overseas lifestyle support services
including international moving, fine art transport business

Name:
Content of business:

Yamato Packing Service Co., Ltd.
Packing / cargo transportation services

Name:Content of business:

Yamato Packing Technology Institute Co., Ltd.
R&D and sale of packaging containers and materials

Name:Content of business:

Yamato Financial Co., Ltd.
Settlement services targeting business customers and general
consumers (TA-Q-BIN Collect service, Internet total settlement service,etc.)b. Date of the business combination
April 1, 2021 (planned)c. Legal form of the business combination
Absorption-type merger with seven subsidiaries, namely Yamato Transport Co., Ltd., Yamato
Global Express Co., Ltd., Yamato Logistics Co., Ltd., Yamato Global Logistics Japan Co., Ltd.,
Yamato Packing Service Co., Ltd., Yamato Packing Technology Institute Co., Ltd. and Yamato
Financial Co., Ltd. as the disappearing companies and the Company as the surviving company.
d. Name of the company after the business combination
Not determined at this stage.

- 15 -

(2) Absorption-type company split in which the Company is the successor company
a. Names of businesses and the contents thereofName of business:
Web-based Mail Order Solution Business of Yamato System
Development Co., Ltd.
Content of business:
Offering a package consisting not only of services related to launch of amail order business, but also, to fully support the customer’s business,creating a tailor-made IT system and managing it.
Name of business:
Content of business:

Regional Operation Management Department of Yamato System
Development Co., Ltd.
Sales department

b. Date of the business combination
April 1, 2021 (planned)c. Legal form of the business combination
Absorption-type company split with Yamato System Development Co., Ltd. as the splitting company
and the Company as the successor company.
d. Name of the company after the business combination
Not determined at this stage.
(3) Overview of the transaction including its purpose
The Company has formulated the transformation plan “YAMATO NEXT100.” This plan has beenformulated as a grand design, which is the framework of the next medium-term management plan,
based on the results and challenges of the current medium-term management plan “KAIKAKU 2019
for NEXT100” and changes in the external environment.
Based on this plan, in April 2021, the Company will reorganize its management structure to shift thecurrent pure holding company structure into a business company structure, which consists of fourBusiness Divisions (Retail, Regional Corporate, Global Corporate, and EC) and four Functional
Divisions, with the objective of reforming the current system of partial optimization of functional units
to a fully optimized organization structured according to customer segments to further improve thespeed of management.
2. Overview of accounting procedures to be applied
The transaction will be accounted for as a transaction under common control in accordance with the“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January 16, 2019) and the“Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures” (ASBJ Guidance No. 10, January 16, 2019).
(Purchase and cancellation of treasury shares)
At the meeting held on January 30, 2020, the Board of Directors resolved matters related to the purchase oftreasury shares of the Company, in accordance with the provisions of the Articles of Incorporation, pursuant
to Article 459, paragraph (1), item (i) of the Companies Act, and also resolved to cancel treasury shares of
the Company in accordance with the provisions of Article 178 of the Companies Act.
1. Reason of purchase and cancellation of treasury shares
The Company purchases and cancels its treasury shares to implement flexible capital policies inaccordance with changes in the business environment with the aim of enhancing shareholder value.
2. Content of matters related to the purchase of treasury shares
Type of shares to be purchased:
Common shares of the Company
Total number of shares to be purchased:
Up to 35,000,000 shares (ratio to the total number ofissued shares (excluding treasury shares): 8.88%)
Total acquisition price of shares to be purchased: Up to 50 billion yen
Acquisition period:
From February 6, 2020 to September 30, 2020
Acquisition method:
Through market purchase- 16 -

3. Content of cancellation of treasury shares
Type of shares to be canceled:Total number of shares to be canceled:

Common shares of the Company
All of the treasury shares to be purchased through 2.
above
October 13, 2020

Scheduled date of cancellation:- 17 -

3. Supplementary Information
Operating revenue by businessBusiness segment

For the nine months ended
December 31, 2018
AmountRatio(Millions of yen)(%)
932,784
74.2
55,543
4.4
31,714
2.5
77,402
6.2(90,683)(7.2)
1,006,762
80.1
77,711
6.2

For the nine months ended
December 31, 2019
AmountRatio(Millions of yen)(%)
945,58875.2
49,275
3.9
31,814
2.5
74,3385.9(84,468)(6.7)
1,016,547
80.8
73,812
5.9

Change(%)

Fiscal year ended March 31,
2019
AmountRatio(Millions of yen)(%)
1,199,084
73.8
73,062
4.5
41,615
2.6
100,698
6.2(117,237)(7.2)
1,297,222
79.8
101,012
6.2

TA-Q-BIN
1.4
Kuroneko DM-Bin(11.3)
Express
0.3
Delivery
Others(4.0)
Eliminations
(6.9)
Total
1.0
Logistics *1(5.0)
Trading logistics
32,1242.6
30,4282.4(5.3)
41,8292.6
service
BIZ-Logistics Others *1
24,5472.0
24,4051.9(0.6)
31,568
1.9
Eliminations(20,346)(1.6)(20,341)(1.6)
0.0(26,973)
(1.7)
Total
114,0379.1
108,303
8.6(5.0)
147,437
9.1
Home convenience *2
36,0702.9
30,115
2.4(16.5)
46,0402.8
HomeEliminations(10,432)(0.8)(9,239)(0.7)(11.4)(12,636)(0.8)
Convenience
Total
25,6382.0
20,876
1.7(18.6)
33,404
2.1
Credit card solution
6,893
0.5
8,592
0.7
24.6
9,373
0.6
IT operating
5,454
0.4
6,201
0.5
13.7
7,470
0.5
Web-based mail order
4,691
0.4
5,208
0.4
11.0
5,844
0.4
solution
e-Business
Others37,8073.0
40,663
3.2
7.6
50,827
3.1
Eliminations(34,809)(2.8)(37,861)(3.0)
8.8(46,922)
(2.9)
Total
20,037
1.6
22,805
1.8
13.8
26,592
1.6
Payment
24,5702.0
22,4771.8(8.5)
32,1622.0
Lease30,4192.4
30,1512.4(0.9)
40,181
2.5
Credit & Finance
2,644
0.2
2,538
0.2
(4.0)
3,479
0.2
Financial
Others
5,197
0.4
5,275
0.4
1.5
7,056
0.4
Eliminations(2,222)(0.2)(2,168)(0.2)(2.5)(2,913)(0.2)
Total
60,6094.8
58,275
4.6(3.9)
79,966
4.9
Truck solution
39,315
3.1
38,9463.1(0.9)
50,486
3.1
Others
7,144
0.6
6,575
0.5
(8.0)
9,620
0.6
Autoworks
Eliminations(27,008)(2.1)(26,683)
(2.1)
(1.2)
(34,121)
(2.1)
Total
19,451
1.5
18,8381.5(3.2)
25,985
1.6
JITBOX Charter service
9,660
0.8
10,4320.8
8.0
12,6090.8
Others43,6203.5
62,8135.0
44.0
51,651
3.2
Other
Eliminations(42,206)(3.4)(61,169)(4.9)
44.9(49,556)
(3.0)
Total
11,0740.9
12,0761.0
9.1
14,7050.9
Total
1,257,610
100.0
1,257,724
100.0
0.0
1,625,315
100.0
Changes have been made to the business segments, mainly for the purposes of enhancing functions of the respective operations andstreamlining management. The principal changes are shown below. Accordingly, the segment information for the nine months ended
December 31, 2018 and the fiscal year ended March 31, 2019 have been restated to reflect the new classification.
*1.
In the BIZ-Logistics segment, the segment information has been changed as follows.
• Effective from the first quarter of the fiscal year ending March 31, 2020, Products Logistics is included in Others.
• Effective from the third quarter of the fiscal year ending March 31, 2020, four business divisions, namely Sales and Logistics, Multi
maintenance, Technical Network and e-Logistics solution, as well as four business divisions, namely Medical Logistics, Documents
Logistics, e-On Demand solution and Setup and Logistics solution that belonged to Others, are presented as Logistics.
*2.
Effective from the first quarter of the fiscal year ending March 31, 2020, in the Home Convenience segment, Business convenience isincluded in Home convenience.

- 18 -