Translation
July 31, 2019

Consolidated Financial Results
for the First 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:
August 13, 2019
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 first quarter of fiscal year 2020
(cumulative: from April 1, 2019 to June 30, 2019)(1) Consolidated operating results

For the three months ended
June 30, 2019
June 30, 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%
381,7260.3(6,100)—(9,323)—(9,747)—
380,690
7.1
9,578
—
9,429
—
2,638
—
For the three months ended June 30, 2019: (10,534) million yen (— %)For the three months ended June 30, 2018:
2,486 million yen (— %)Basic earnings per share

For the three months ended
June 30, 2019
June 30, 2018

Diluted earnings
per shareYen(24.72)
6.69

Yen
—
—

(2) Consolidated financial position
As ofJune 30, 2019
March 31, 2019
(Reference) Equity:2.

Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen%
1,100,227
556,37649.9
1,123,659
573,388
50.4
As of June 30, 2019: 549,035 million yen
As of March 31, 2019: 565,841 million yen

Dividends
First quarter
Yen——

Second quarter
Yen
14.00

Fiscal 2019
Fiscal 2020
Fiscal 2020 (Forecast)
15.00(Note) Revisions to the forecasts most recently announced: None

Annual dividends
Third quarter
Yen—

Fiscal year-end
Yen
14.00

—

16.00

Total
Yen
28.00
31.00

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%
Half year
807,000
2.3
12,000 (48.8)
Full year
1,695,000
4.3
72,00023.4(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
9,000 (60.5)
1,000 (90.0)
2.54
69,00027.2
38,00048.0
96.38* Notes(1) Changes in significant subsidiaries during the three 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 June 30, 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 June 30, 2019:17,065,587 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 three months ended June 30, 2019:394,274,405 shares
For the three months ended June 30, 2018:394,275,707 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 three 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 post supplementary materials on quarterly financial results on the Company’s website promptly after theannouncement of the quarterly financial results.

Attached Materials
Index
1. Qualitative Information on Settlement of Accounts for the Three 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
3. Supplementary Information .................................................................................................................................. 15
Operating revenue by business............................................................................................................................ 15-1-

1. Qualitative Information on Settlement of Accounts for the Three Months(1) Explanation of operating results
During the three months ended June 30, 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 volume
by 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 of Group management structure geared to achieving sustainable growth.”
In the Delivery Business, we promoted our initiatives to rebuild our “last one mile” network that include
adequate pricing initiatives and enhancement of collection and delivery structure to live up to the trust andexpectations of customers in order to regain profitability and expand collection and delivery capacity.
In the non-delivery businesses, we took steps to expand our existing service offerings by enlisting thestrengths 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 three months ended June 30, 2019 are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of the Parent

For the three months
ended June 30, 2018
380,690
9,578
9,429

For the three months
ended June 30, 2019
381,726(6,100)(9,323)

2,638(9,747)

ChangeGrowth (%)

1,036(15,679)(18,753)0.3––(12,386)–

As mentioned above, operating revenue amounted to 381,726 million yen, up 1,036 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 387,827 million yen, up 16,715 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 towardbuilding collection and delivery structure.
As a result, operating loss amounted to 6,100 million yen, a deterioration of 15,679 million yen from theprevious year.
Ordinary loss amounted to 9,323 million yen, a deterioration of 18,753 million yen from the previous year,
mainly as a result of an increase of 2,924 million yen in share of loss of entities accounted for using equity
method due to impairment of goodwill relating to the affiliates overseas.
As a result, loss attributable to owners of the Parent amounted to 9,747 million yen, a deterioration of 12,386
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 an vibrant working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Work Style

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②

③

④

⑤

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
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 volumes. 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 will make 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 will also 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,
and have worked on other efforts for the development of next-generation logistics services including
utilization of automated driving technologies. Moreover, in order for addressing social issues such as theintensifying 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 bypromoting digitization of our overall logistics operations, and in carrying out structural reform oftrunk-route transportation for the purpose of optimizing the entire network for streamlining transportation.

Summary of each operating segment

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

For the three months
ended June 30, 2018
418
339

For the three months
ended June 30, 2019
419
273

ChangeGrowth (%)
1
(66)

0.3
(19.5)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 Amid a severe business environment due to an upward trend with respect to small parcel volume by
expansion of the e-commerce market brought about by rapidly changing styles of consumption andtightening of the domestic labor market, during the three months ended June 30, 2019, we continued topromote our initiatives to rebuild our “last one mile” network that include adequate pricing initiatives andenhancement of collection and delivery structure to live up to the trust and expectations of customers inorder to regain profitability and expand collection and delivery capacity. In addition, we have been

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③

④

⑤

⑥

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.
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 threemonths ended June 30, 2019, we have been working in conjunction with flea market websites ande-commerce companies to provide greater convenience by developing a service environment whereindividual customers ship merchandise from convenience stores and PUDO station open-type parcel
lockers. Moreover, we have been offering a service environment enabling customers who have purchaseda product to specify either a business office of Yamato Transport Co., Ltd., a convenience store or a
PUDO station as a location for pick-up, and we have opened a “Kuroneko Stand” self-operated store
where customers are able to pick up and drop off parcels anytime 24 hours a day, 365 days a year.
With respect to corporate clients, we have been accurately pinpointing managerial challenges andactively proposing solutions to address those challenges. Moreover, we have been working to strengthen
account management on a Group-wide basis and boost profitability by making proposals that provide highadded value using the Group’s business resources.
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 overelderly residents. Moreover, we have also been helping to revitalize local industry particularly throughinitiatives that involve supporting tourism and helping to expand sales channels for locally produced
products.
Operating revenue amounted to 303,946 million yen, up 1.6% from the previous year owing to a higher
TA-Q-BIN unit price amid promotion of structural reforms in the Delivery Business. As for profits, operating
loss amounted to 9,817 million yen, a deterioration of 16,004 million yen from the previous year due toincreasing expenses related to our reform initiatives and other factors.

 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,maintenance and recall handling functions, cleansing functions for medical devices and internationaltransportation 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 three months ended June30, 2019, we promoted efforts to increase sales of this service, particularly among our existing customers.
③ Operating revenue amounted to 34,703 million yen, down 6.4% from the previous year mainly as a resultof maintenance and recall services falling back from the previous fiscal year. Operating profit amounted to
792 million yen, down 29.1% from the previous year mainly as a result of having incurred upfront
expenses to achieve business growth.

 Home Convenience① Given the situation where there were inappropriately billings to corporate clients for moving-related
services provided to their employees, Home Convenience Business has been taking steps to prevent a
recurrence of such incidents through efforts that have included improving the organizational framework,
comprehensively inspecting all moving-related services, fundamentally overhauling the moving business,and revamping product design.

-4-② Operating revenue amounted to 6,783 million yen, down 25.6% from the previous year. The decrease
was due to having stopped all moving-related services, including those involving individual customers. As
for profits, the segment posted an operating loss of 2,991 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 three months ended June 30, 2019, we actively expanded sales of theservice to the banking and insurance industry, and use of this service increased.
③ Operating revenue amounted to 6,782 million yen, up 9.0% from the previous year mainly as a result of
our having expanded sales of “Certified Web Retrieval Service” and our “Information Technology AssetManagement Service” that provides comprehensive support encompassing everything from procurementof personal computers and other IT assets to management of such assets. Operating profit was 1,958
million yen, up 0.4% 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 three months ended June 30, 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, we alsoenhanced functionality of our “Kuroneko Pay After Delivery Services” with launch of the“smartphone-based payment” feature that enables users to select from various payment options
displayed on their smartphone device after having received products, which is in addition to the alreadyavailable “payment slip-based payment” feature whereby a payment slip is sent by postal mail to thecustomer who has made a purchase.
③ Operating revenue amounted to 19,358 million yen, down 2.3% from the previous year mainly due to adecrease in “TA-Q-BIN Collect” delivery volume 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 1,697 million yen,down 0.7% 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,” aswell as services that help our customers improve their asset utilization ratios, by adding options of“maintaining and safeguarding logistics facilities and equipment, and improving such workplaceenvironments,” along with “offering insurance plans tailored to customer risk management needs” which
provide coverage for such assets.

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② During the three months ended June 30, 2019, we achieved greater use of maintenance services as aresult of having carried out initiatives to increase sales of such services through close communication withcustomers.
③ Operating revenue amounted to 6,379 million yen, up 5.4% from the previous year largely as a result of
an increase in the number of vehicles serviced. Operating profit was 1,433 million yen, up 14.8% from theprevious year mainly due to progress made in streamlining business processes, particularly in terms ofstandardizing and enabling visual monitoring of business operations by introducing production methods ofmanufacturers.

 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-volume delivery. In the three months ended June 30, 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
increased 60.8% from the previous year to 406 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 three months ended June 30, 2019, the entire Yamato Group including its overseas operations
carried out the “Zero Traffic Accidents Campaign” in order to improve safety awareness on a Group-widebasis. In addition, since 1998 we have been holding our “Safety Classes for Children,” through which weconvey the importance of traffic safety, in day care facilities, kindergartens and elementary schools acrossJapan. A total of about 3.34 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 upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour 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 three months ended June 30, 2019, in order to foster a sense of
ethics throughout the Group, further instill our corporate philosophy, and promote such practices in ouroperations, we partially revised our Corporate Stance which constitutes our corporate philosophy, our
Employee Code of Conduct, and other such documents, and continued to implement ethics education for
all of our employees, carrying on from the previous fiscal year.
④ The Yamato Group recognizes climate change, air pollution, depletion 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 240 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 three months ended
June 30, 2019, we promoted our “combined passenger-cargo” operations using scheduled-routepassenger buses and railways, thereby helping to improve lifestyle services for local residents by keeping-6-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 of suburban housing complexes which
are undergoing changes with respect to people’s life stages, we have been providing support forcommunity 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, andproviding 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. We are currently involved
in 1,023 initiatives now being implemented or otherwise under discussion.
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 1,100,227 million yen as of June 30, 2019, down 23,432 million yen from the end of theprevious fiscal year. The decrease was largely attributable to a 29,409 million yen decrease in cash anddeposits, despite an increase in income taxes receivable of 7,756 million yen.
Liabilities decreased 6,420 million yen to 543,850 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 20,563 million yen decrease in provision for bonuses, a 18,331 million
yen decrease in income taxes payable due to the payment of income taxes, and a 15,199 million yen decreasein notes and accounts payable - trade, despite a 53,822 million yen increase in accrued expenses mainly as aresult of having recognized scheduled payments of summer bonuses.
Total net assets were 556,376 million yen, down 17,012 million yen from the end of the previous fiscal year.
This was mainly attributable to a decrease in retained earnings of 16,145 million yen due to the recording ofloss attributable to owners of the Parent of 9,747 million yen and payment of dividends of surplus of 5,519
million yen.
Accordingly, the equity ratio changed to 49.9% from 50.4% of the previous fiscal year.
(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. Meanwhile, the severe business environment affecting the logistics industry is
likely to persist amid factors that include further tightening of the domestic labor market, amid a continued
upward trend with respect to small parcel volume brought about by rapidly changing styles of consumption andother such trends.
In that environment, the Yamato Group will place a management focus on “Work Style Reform” and endeavor
to improve and develop the working environment, while in the Delivery Business promoting its “structuralreforms in the Delivery Business.” Meanwhile, we will persist with ongoing efforts that involve expanding
collection and delivery capacity by promoting initiatives to rebuild our “last one mile” network and engaging in
adequate pricing initiatives. In addition, we will expand our revenue base by strengthening accountmanagement on a Group-wide basis and promoting solution sales geared toward addressing customers’
business challenges. As for expenditures, we will focus on controlling costs in line with operating volumes
despite the likelihood of increases in outlays associated with our reform initiatives. The consolidated earnings
forecasts reflect the effects of the current 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 half year and for the fullyear of the fiscal year ending March 31, 2020 since the announcement made on April 26, 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 June 30, 2019

AssetsCurrent assets
Cash and deposits

195,954

166,545

Notes and accounts receivable - trade

220,159

219,989

Accounts receivable - installment

44,80245,027

Lease receivables and investments in leases

54,53754,692Merchandise and finished goods

642

683

Work in process

194

213

Raw materials and supplies

2,410

2,161

Other

33,032

41,355

Allowance for doubtful accounts(1,475)(1,455)

Total current assets

550,258

529,212352,141

353,612

Accumulated depreciation(204,191)(205,828)

Buildings and structures, net

147,950

147,784

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

Vehicles

208,031210,280(183,835)(185,563)

24,19524,716

Land

175,995

175,995

Leased assets

31,53731,516

Accumulated depreciation
Vehicles, net

Accumulated depreciation(9,531)(9,495)

Leased assets, net

22,00622,021

167,940

168,522(109,170)(110,537)

Other
Accumulated depreciation
Other, net

58,76957,985428,918

428,504

20,62421,000Investment securities

54,013

48,215

Other

70,84774,406

Allowance for doubtful accounts(1,002)(1,112)

Total investments and other assets

123,858

121,509573,401

571,014

1,123,659

1,100,227

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 June 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade158,938

143,738

Short-term borrowings

60,80055,800

Lease obligations

2,791

3,613

Income taxes payable

23,747

5,415

Deferred installment income

5,341

5,181

Provision for bonuses

35,844

15,280Other

122,961

174,531

Total current liabilities

410,423

403,560

Bonds payable

10,00010,000Long-term borrowings

19,50019,500

Lease obligations

20,142

20,472Retirement benefit liability

74,50875,109Non-current liabilities

Other

15,696

15,207

Total non-current liabilities

139,847

140,289

550,270

543,850

Share capital

127,234

127,234

Capital surplus

36,81336,813Retained earnings

431,497415,351

Total liabilities
Net assets
Shareholders’ equity

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

Total shareholders’ equity

556,459

540,314

12,975

11,250

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(515)

194

Remeasurements of defined benefit plans(3,078)(2,722)

Total accumulated other comprehensive income

9,381

8,721

7,547

7,341

573,388556,376

1,123,659

1,100,227

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 three months ended
June 30, 2018

For the three months ended
June 30, 2019

Operating revenue

380,690

381,726

Operating cost

358,649

374,114

Operating gross profit

22,041

7,612

Selling, general and administrative expenses

12,462

13,713Operating profit (loss)

9,578(6,100)Non-operating income
Interest income

33

38

Dividend income

376

399

Other

285

251

Total non-operating income

695

689

Non-operating expenses
Interest expenses

60

96

Share of loss of entities accounted for using equity method

468

3,393

Other

315

422

Total non-operating expenses

844

3,911

9,429

(9,323)Gain on sales of non-current assets

01Gain on sales of investment securities

37―

Total extraordinary income

37

1

Loss on retirement of non-current assets

56

45

Impairment loss

820

45

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

Loss on valuation of investment securities

0

0

Other

0

―

Total extraordinary losses

877

91

Profit (loss) before income taxes

8,589(9,413)

Income taxes

5,879

257

Profit (loss)

2,709(9,670)

Profit attributable to non-controlling interests

71

76

Profit (loss) attributable to owners of the Parent

2,638(9,747)- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the three months ended
June 30, 2018

For the three months ended
June 30, 2019

2,709

(9,670)

Valuation difference on available-for-sale securities

1,104(1,978)Foreign currency translation adjustment

(978)

709

Remeasurements of defined benefit plans, net of tax

(349)

355

(0)

50

(223)

(863)

2,486

(10,534)

Comprehensive income attributable to owners of the Parent

2,251(10,407)

Comprehensive income attributable to non-controllinginterests

235

(126)

Profit (loss)
Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)- 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 estimatedeffective tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal
year including the first 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 this fiscal year, and as such generally recognizes all leases 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 of its 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 three months ended June 30, 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

299,175

37,071

9,114

6,220

19,82016,771

2,975

2,854

9,633

736

315,947
6,186

40,046
1,118

11,968(3,005)15,854
1,951

20,556
1,710

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
6,051
3,236
380,690―
380,690(2) Inter-segment operating revenue or
8,127
25,414
66,513(66,513)―transfers
Total
14,17928,651
447,204(66,513)
380,690
Segment profit (loss)
1,249
18,607
27,818(18,239)
9,578
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 820
million yen for the three months ended June 30, 2018.

- 13 -

II

For the three months ended June 30, 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

303,946

34,703

6,783

6,782

19,35813,705

3,038

2,494

10,478692

317,652(9,817)37,742792

9,278(2,991)

17,261
1,958

20,0501,697

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from
6,379
3,771
381,726―
381,726
customers(2) Inter-segment operating revenue
7,984
43,80682,200(82,200)―
or transfers
Total
14,36347,578463,926(82,200)
381,726
Segment profit (loss)
1,433
36,712
29,787(35,888)(6,100)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 loss 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 -

3. Supplementary Information
Operating revenue by businessBusiness segment

For the three months ended For the three months ended
June 30, 2018
June 30, 2019
Amount(Millions of yen)
274,260
19,814
10,18824,862(29,950)
299,175
13,547
5,320
4,526

Ratio
(%)
72.0
5.2
2.7
6.5
(7.9)
78.6
3.6
1.4
1.2

Amount(Millions of yen)
280,237
17,26010,042
23,069(26,662)
303,946
12,448
4,329
4,460

Ratio
(%)
73.4
4.5
2.6
6.0
(7.0)
79.6
3.3
1.1
1.2

Change(%)

Fiscal year ended March 31,
2019
Amount(Millions of yen)
1,199,084
73,062
41,615
100,698(117,237)
1,297,222
53,137
19,982
18,164

Ratio
(%)
73.8
4.5
2.6
6.2
(7.2)
79.8
3.3
1.2
1.1

TA-Q-BIN
2.2
Kuroneko DM-Bin(12.9)
Express(1.4)
Delivery
Others(7.2)
Eliminations(11.0)
Total
1.6
Sales and Logistics *1(8.1)
Reverse Logistics *1(18.6)
Healthcare Logistics *1(1.4)
BIZ-Logistics Trading logistics
10,252
2.7
9,723
2.5
(5.2)
41,8292.6
service
Others *1
10,5192.8
10,4522.7(0.6)
41,297
2.5
Eliminations(7,095)(1.9)(6,711)(1.8)(5.4)(26,973)
(1.7)
Total
37,071
9.7
34,703
9.1(6.4)
147,437
9.1
Home convenience *2
11,974
3.1
9,280
2.4
(22.5)
46,0402.8
HomeEliminations(2,859)(0.8)(2,496)(0.7)(12.7)(12,636)(0.8)
Convenience
Total
9,114
2.4
6,783
1.8
(25.6)
33,404
2.1
Credit card solution
2,177
0.6
2,657
0.7
22.1
9,373
0.6
IT operating
1,695
0.4
2,095
0.5
23.6
7,470
0.5
Web-based mail order
1,287
0.3
1,266
0.3
(1.6)
5,844
0.4
solution
e-Business
Others12,692
3.3
12,2673.2(3.3)
50,827
3.1
Eliminations(11,632)(3.1)(11,504)
(3.0)
(1.1)
(46,922)
(2.9)
Total
6,220
1.6
6,782
1.8
9.0
26,592
1.6
Payment
7,847
2.1
7,315
1.9
(6.8)
32,1622.0
Lease
10,0602.6
10,0202.6(0.4)
40,181
2.5
Credit & Finance
870
0.2
834
0.2
(4.1)
3,479
0.2
Financial
Others
1,791
0.5
1,894
0.5
5.7
7,056
0.4
Eliminations
(749)
(0.2)
(706)
(0.2)
(5.8)
(2,913)(0.2)
Total
19,8205.2
19,3585.1(2.3)
79,966
4.9
Truck solution
12,666
3.3
12,8313.4
1.3
50,486
3.1
Others
2,165
0.6
2,174
0.6
0.4
9,620
0.6
Autoworks
Eliminations(8,780)(2.3)(8,626)(2.3)(1.8)(34,121)
(2.1)
Total
6,051
1.6
6,379
1.7
5.4
25,985
1.6
JITBOX Charter service
2,818
0.7
3,261
0.9
15.7
12,6090.8
Others27,514
7.2
45,92812.0
66.9
51,651
3.2
Other
Eliminations(27,096)(7.1)(45,417)(11.9)
67.6(49,556)
(3.0)
Total
3,236
0.9
3,771
1.0
16.5
14,705
0.9
Total
380,690
100.0
381,726100.0
0.3
1,625,315
100.0
Effective from the first quarter of the fiscal year ending March 31, 2020, changes have been made to the business segments, mainly for the
purposes of enhancing functions of the respective operations and streamlining management. The principal changes are shown below.
Accordingly, the segment information for the three months ended June 30, 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.
• Sales and Logistics as well as e-Logistics solution are presented as Sales and Logistics.
• Multi maintenance, Technical Network, and Setup and Logistics solution that belonged to Others is presented as Reverse Logistics.
• Medical Logistics and e-On Demand solution that belonged to Others are presented as Healthcare Logistics.
• Products Logistics is included in Others.
*2.
In the Home Convenience segment, Business convenience is included in Home convenience.

- 15 -