YAMATO HOLDINGS CO., LTD.

Annual Report 2009

Creating
ALWAYS

Satisfaction

INNOVATING

Annual Report 2009
Year ended March 31, 2009
Printed in Japan on recycled paper

Profile

Corporate Data
(As of March 31, 2009)

The Yamato Group consists of Yamato Holdings Co., Ltd. (“the Company”), 44 subsidiaries andfour affiliated companies. It is primarily involved in seven business segments: Delivery, BIZLogistics, Home Convenience, e-Business, Financial, Truck Maintenance and Other, as well as
services incidental to these activities.
The goal of the Yamato Group is to help bring about a better society by further refining theHead OfficePrincipal Shareholders
Percentage of total
shares outstanding

Yamato Holdings Co., Ltd.
16-10, Ginza 2-chome, Chuo-ku, Tokyo
104-8125, Japan
Telephone: (03) 3541-4141
Facsimile: (03) 5565-3427

The Master Trust Bank of Japan, Ltd. (Trust Account)

7.05%

Japan Trustee Services Bank, Ltd. (Trust Account)

6.79%

Japan Trustee Services Bank, Ltd. (Trust Account 4G)

5.53%

Mizuho Bank, Ltd.

3.77%

Common Stock

Yamato Employees’ Shareholding Association

3.48%

State Street Bank and Trust Company 505223

2.69%

has managed its businesses in pursuit of this goal, toward which it will continue to strive. To thisAuthorized: 1,787,541,000 shares
Issued: 457,315,176 shares

Nippon Life Insurance Company

2.68%

end, the Group is working to maximize corporate value through improving quality by constantly

Stock Exchange Listing

Meiji Yasuda Life Insurance Company

2.68%

Tokyo Stock Exchange

Yamato Trading-Partner Shareholding Association

2.32%

Sumitomo Life Insurance Company

1.85%

Total

38.87%

Takkyubin network, which is a part of the social infrastructure, creating services that facilitate
more convenient, comfortable lifestyles, and developing innovative logistics systems. The Groupputting ourselves in our customers’ position, while also using the capabilities of the whole Groupto develop unique services that further improve convenience for our customers.

Transfer Agent and Registrar
Mizuho Trust & Banking Co., Ltd.

Annual Meeting
The annual meeting of shareholders is normally held in Junein Tokyo, Japan.

Auditors

Contents

Deloitte Touche Tohmatsu(by Tohmatsu & Co., the Japanese member of Deloitte
Touche Tohmatsu)

1 To Our Shareholders
2 Six-Year Consolidated Financial Summary
3 Message from the Management
8 At a Glance

Stock Price Range (Tokyo Stock Exchange)
(Yen)

(Yen)

2,500

18,00010 Overview of Operations
17 Organization

16,0002,000

18 Corporate Social Responsibility

14,00020 Corporate Governance
22 Directors and Auditors

1,500

12,00023 Financial Section
45 Corporate Data

10,000
1,000
8,000

500
Forward-Looking Statements
This annual report contains forward-looking statements concerning Yamato Holdings’ future plans, strategies and performance. These statements represent assumptions and beliefs based on information currently available and are not historical facts. Furthermore, forward-looking statements are subject to a number of risks anduncertainties that include, but are not limited to, economic conditions, customer demand, foreign currency exchange rates, tax laws and other regulations.
Yamato Holdings therefore cautions readers that actual results may differ materially from these predictions.

06/4

7

10

07/1

4

■ Stock Price Range (left scale)7

10— Average (left scale)

08/1

4

7

10

09/1

6,000

Nikkei Stock Average (right scale)

45

Annual Report 2009

To Our Shareholders

Creating
ALWAYS

Satisfaction

INNOVATING

Keiji Aritomi

Kaoru Seto

Fiscal 2009, ended March 31, 2009, was the first year of our

into a solutions provider, while at the same time successfully“Create Satisfaction Three-Year Plan” medium-term manage-

reducing costs by implementing full-fledged reforms to ourment plan. The Yamato Group worked toward the two major

Takkyubin business, which we have continuously offered forpolicies outlined in the plan: establishing the overwhelming

over 30 years. I am firmly aware that these accomplishments

leadership position in the parcel delivery service market andare the result of our innovative spirit.

creating strategic global footholds in the Asian region.

In last year’s annual report, we described our stance as

However, due in part to the impact of the rapid economic“Still a Leader, Still an Innovator.” Carrying on that theme, thisdeterioration triggered by the global financial crisis, the number

year our core concept is “Always Innovating.” Going forward,of parcels handled in the Takkyubin business declined year on

we will continue to leverage the many valuable assets we haveyear for the first time since we began offering the service. The

built up over the years to maximize corporate value.

Yamato Group’s consolidated operating revenues for the year

Regarding dividends, in the fiscal year under review wetotaled ¥1,251,922 million, while consolidated operating

paid a year-end dividend of ¥11 per share, as well as anincome amounted to ¥55,721 million.

interim dividend of ¥11 per share, for a total of ¥22 per share.

For Yamato Holdings as well, the rapid economic deterioration has had no small impact on our results. Indeed, we

To all our shareholders, I ask for your continued supportand encouragement going forward.

have faced an extremely difficult management environment
during the year.
Under these circumstances, we were able to receive two
major types of feedback. The first is that through combining

Keiji Aritomi

logistics technology (LT), information technology (IT), andDirector and Chairman

financial technology (FT), we have been able to create a solutions business for corporation clients that our competitors will
be hard pressed to duplicate. The second is that in the delivery business we have simultaneously achieved both stronger

Kaoru Seto

cost-competitiveness through productivity-enhancing innova-

Representative Director,

tions in Takkyubin operations and also improved our services.

President and Executive Officer

I will explain in more detail later, but the summary is that,amid this economic slump, we have transformed ourselves

1

Annual Report 2009

Six-Year Consolidated Financial Summary

Operating revenues
Delivery
Non-Delivery
Operating costs
Selling, general andadministrative expenses
Operating income
Delivery (Note 2)
Non-Delivery (Note 2)
Income before income taxes andminority interests
Income taxes
Net income (loss)

Millions of Yen

Thousands of
U.S. Dollars (Note 1)

2009
2008
2007
2006
2005
2004
¥1,251,922 ¥1,225,974 ¥1,161,568 ¥1,144,961 ¥1,071,903 ¥1,011,344
997,898
981,142934,607908,228––
254,024
244,832
226,961
236,733––
1,167,764 1,129,008 1,064,044 1,043,372
998,786
945,2012009$12,744,802
10,158,794
2,586,008
11,888,058

28,43755,721
31,344
24,37628,786
68,18040,35027,83030,363
67,161
43,69823,46332,86868,72147,053
21,66821,914
51,203––

19,48446,659––289,494567,250
319,094
248,156

48,99623,34925,52367,596
31,44735,353

66,82532,47033,813

7,712
31,276(23,968)

61,741
27,95933,84887,29337,51549,783498,789
237,696259,834

Yen

Per share of common stock:
Basic net income (loss)
Diluted net income
Cash dividends
Net assets per share¥

U.S. Dollars (Note 1)

57.60 ¥
79.80 ¥
75.59 ¥
56.45
78.12
74.00
22.00
22.00
20.00
1,073.86
1,050.99
1,005.63(53.47) ¥20.00
951.0874.02 ¥
72.48
18.00
1,019.02

107.51105.2018.00
971.84

$

0.59
0.57
0.22
10.93

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

Working capital¥ 159,937 ¥ 125,355 ¥ 140,377 ¥ 123,483 ¥ 80,843 ¥ 74,803
Total shareholders’ equity
475,815465,801
445,263423,690458,792
443,715
Total assets
869,606
874,219829,721793,222676,156
652,792
Capital expenditures
45,856
124,832
48,881
48,86540,96647,587
Depreciation and amortization
42,69744,77240,15035,00337,14635,663
Net cash provided by operating activities
84,463116,896
80,76384,67576,642
41,064$ 1,628,185
4,843,885
8,852,750
466,821434,662
859,847

Operating income margin (%)
Return on revenues (%)
Return on assets (%)
Return on equity (%)
Current ratio (%)
Equity ratio (%)
Assets turnover (Times)
Interest coverage ratio (Times)

4.45
2.04
2.93
5.42
158.00
54.72
1.44
58.57

5.56
2.88
4.15
7.76
144.8953.28
1.44
223.00

5.78
2.91
4.17
7.78
149.3053.66
1.43
260.666.00(2.09)(3.26)(5.43)
143.7753.41
1.56
137.92

4.78
3.16
5.09
7.50
142.8567.85
1.61
104.19

4.61
4.92
7.61
11.71
142.39
67.97
1.55
65.17

–
–
–
–
–
–
–
–

Number of employees
Full-timePart-time
Takkyubin delivery volume(Millions of parcels)
Unit price (Note 3) (Yen)
Kuroneko Mail handling volume(Millions of units)
Unit price (Yen)

170,662
82,601
88,061

169,836
80,843
88,993

157,653
77,17080,483

152,787
75,552
77,235

141,60274,571
67,031

131,974
69,39862,576

–
–
–

1,232
645

1,236
644

1,174
647

1,128
653

1,063
666

1,011
682

–
–

2,231
65

2,206
64

1,970
66

1,734
69

1,432
73

994
84

–
–

Notes: 1. U.S. dollar amounts have been translated, for convenience only, at the rate of ¥98.23 to U.S.$1.
2. In November 2005, the Yamato Group shifted to a pure holding company structure, with Yamato Holdings Co., Ltd. as the parent company. This decision was made in order toclarify the distinction between decision-making and business execution functions, with a view to optimizing the distribution of management resources and increasing the speedof operations. Since the year ended March 31, 2006, the Group has reported operating income for the delivery business and non-delivery businesses with eliminations or
corporate allocated by segment. Eliminations or corporate for the current and previous fiscal years are shown with segment information on p.42. Eliminations or corporate forthe year ended March 31, 2006 were ¥2,602 million. Elimination or corporate for the year ended March 31, 2007 were ¥31,889 million.
3. Operating revenues for Takkyubin operations for fiscal 2009 include the revenues of consigned business from the Domestic Air-Freight business as a result of the business’
in-house spin-off. Unit price calculated by the same method as the previous year was ¥643.

2

YAMATO HOLDINGS CO., LTD.

Message from the Management I

An Always

Innovative

SOLUTIONSPROVIDER

Representative Director, President and Executive Officer

Kaoru Seto

The Yamato Group Today

financial crisis. In light of this, I would like to start by giving an

Fiscal 2009 marked the first year of our medium-term man-overview of what we accomplished during that year.

agement plan “Create Satisfaction Three-Year Plan.” Earningswise, we saw higher revenues but lower profits, with operatingFirst, with the aim of establishing long-term growth for theGroup in the future, we promoted two major policies.

revenues growing 2.1% year on year, while operating income
declined 18.3%. Excluding the impact of the spinoff of the

1. Establish an overwhelming leadership position in theexpress business from the delivery business, however, operat-parcel delivery service market, based arounding revenues were actually down by 0.2%. Operating income

Takkyubin.

was not affected by the spinoff, and thus still fell by 18.3%.
Thus, both revenues and profits declined year on year.

2. Bring together the logistics technology (LT), information technology (IT), and financial technology (FT)

Beginning on page 10 of this report, we will explain thefunctions of the Takkyubin business to leverage themain results in each business. However, fiscal 2009 was amanagement resources of the Group as a whole andspecial year in many ways, not least in historical terms due tocreate new businesses.

the rapid deterioration of the economy caused by the global

Financial Results
Millions of Yen

FY05/3

FY06/3

FY07/3

FY08/3

FY09/3

ChangeIncrease/
DecreaseYoY (%)

Operating Revenues
Delivery–¥ 908,228¥ 934,607¥ 981,142¥ 997,898¥ 16,756

1.7

Non–Delivery–

236,733

226,961

244,832

254,024

9,192

3.8

¥1,071,903

1,144,961

1,161,568

1,225,974

1,251,922

25,9482.1

51,20368,721

67,161

68,18055,721(12,459)(18.3)

4.8%

6.0%

5.8%

5.6%

4.5%

–

–

33,848(23,968)

33,81335,35325,523(9,830)(27.8)

3.2%(2.1)%

2.9%

2.9%

2.0%

–

–

Total
Operating Income(Margin)
Net Income (loss)(Margin)3

Annual Report 2009

In November 2005, we clearly separated decision-making
Logistics
Technology

functions from business execution functions, and transferred
to a pure holding company system with the new Yamato

LT

Holdings Co., Ltd. as the parent company. This move enabled
us to achieve optimal allocation of management resources
and increase the speed of management, as well as to promote the smooth portfolio management needed to achieve
our two policies.
Here I would like to stress that the core of the strategy that
Yamato Group has been promoting is not simply to diversify

Information
Technology

Financial
Technology

our operations, but to combine the many valuable assets weIT

FThave accumulated over the years to create new added value.
Based on this point, we placed special priority on two
initiatives out of all those called for by a number of manage-

this, for a short time we took on double our typical personnel

ment issues, and worked to generate results.

costs. Despite these higher costs, however, we got the productivity-enhancing reforms to the Takkyubin operations up

First, we strove to make drastic revisions to the operating

and running, and made progress toward further firming our

methods we have been using for over 30 years. To achieve

Results of Labor Productivity Improvement Measures
FY2009 Delivery Business Revenues(Actual)

8.0

4.0
6.5

6.0

3.0
4.7

2.9

Excl. impact of Yamato Global Express split

2nd half ¥(16.3) billion

4.0

2.0

1.9

■ YoY change in revenues fromexternal customers
YoY growth rate of revenues fromexternal customers (right scale)

2.0

1.0

0

0

(2.0)

(1.0)
(2.3)

(4.0)
(6.0)

(2.0)
(3.0)

1st half ¥11.2 billion

(6.7)

(8.0)
(10.0)(Billions of yen)

FY2009 Delivery Business Expenses(Actual)Excl. impact of Yamato Global Express split■ Personnel

2.0

(9.6)

(5.0)

4Q

(%)

5.2

6.0

2nd half ¥(11.0) billion
Other
VehiclePersonnel
Subcontracting

4.0
3.0
2.0
1.0

2.6

1.5

0.5

(6.0)

(10.0)

1st half ¥19.7 billion
Other
VehiclePersonnel
Subcontracting

5.0

(1.8)
(0.8)
(4.6)
(3.8)

(1.7)

(2.1)
(2.0)

(8.0)

YAMATO HOLDINGS CO., LTD.

3.8

3.6

0

(4.0)

4

0.2
2.3

0.7
1.1

8.0

■ Subcontracting

YoY growth rate of delivery
business expenses (right scale)

3Q

6.0

10.0

4.0

■ Other expenses

2Q

(4.0)

12.0

6.0

■ Vehicle expenses

1Q

(4.4)

0.9
3.4
11.2
4.1

0
(1.0)

(1.4)
(4.6)

(1.9)

(3.7)

(1.3)
(0.4)

(2.0)
(3.0)
(4.0)
(5.0)

management base to allow the Yamato Group to realize con-inventories. Over the year, we prepared a framework that willtinuous growth going forward.

allow us to promote business still further from fiscal 2010.

Second, for our corporate clients in the manufacturing,

Unfortunately, due to the rapid economic slowdown, wemail-order sales and logistics industries, we not only offered

were unable to avoid a drop in operating revenues. However,high-quality, low-cost shipping, but also built various solutions

we view our ability to make major improvements in cost man-businesses that provide new value such as improving cash

agement and transform ourselves into a solutions provider asflows through enhanced sales capabilities and reduced

a definite achievement.

Five Solution Models
Solution Name

Special Features

Target Market

Value

Japan’s fastest, low-cost mail-order sales business
operator support model operates 24 hours a day

1. Today Shopping Service

every day of the year, leveraging the Company’s warehouses and Takkyubin network to achieve same-day

Mail-order sales
Logistics

delivery throughout Japan.

A model that combines logistics technology (LT),2. Net Super Support

information technology (IT), and financial technology(FT) to support the development of Internet supermar-

Logistics

kets with low initial cost and in a short time frame.

1. Shrinkinventories

2. Total logistics
cost reduction

A model that leverages the Takkyubin network to

3. Maintenance Support

provide total maintenance support, from same-day
collection of items needing repair to simple repairs

Manufacturers

3. Sales promotion

within the Group and return to customers.

4. Back-officeprocesses
A model that enhances consumer satisfaction by

reduce work

delivering to consumers directly from overseas,

4. Import Direct

enabling companies to eliminate their domestic

Manufacturers

inventory bases, shrink their inventories and reduce
lead-time.

An ASP service that reduces the amount of complex
business procedures that department stores, super-

5. Web Shipment Control

markets, and other sellers must go through to makeshipments to geographically remote areas by enabling

Mail-order sales
Logistics

web-based shipment orders and generating information exchange between the seller and the shipper.

5

Annual Report 2009

Message from the Management II

Next Stage of Growthservices on a global scale. No other company, including

In February 2008 the Yamato Group announced our newimporters, offers such comprehensive support services cover-medium-term management plan, entitled “Create Satisfaction

ing import administration, domestic delivery, payment agency,

Three-Year Plan.” The main objective of this plan is to lay theand tracking information.

groundwork for the next stage of growth by expanding the

To realize this differentiation strategy, we will draw on our

Yamato Group’s business territory to cover the Asian region.

solid domestic pickup and delivery network and on the exper-

The plan also emphasizes Group-wide management, which is

tise we have amassed over our many years in business.

becoming more important than ever.

Thanks to our strengths in these areas, we believe that our

In last year’s annual report, we stated our targets for fiscal

competitors will be hard pressed to keep pace with us in both

2011, the final year of the “Create Satisfaction Three-Yearquantitative and qualitative terms. I believe that the initiatives

Plan” medium-term management plan: consolidated operatingtaken during the previous three-year plan, Yamato Group Revo-revenues of ¥1,450.0 billion and consolidated operating income

lution 2007, will continue to bear fruit over the next three years.

of ¥100.0 billion. Alongside these targets, we were also aiming
for an operating margin of 6.9% and ROE of 10.0%.
In fiscal 2009, however, we were faced with the rapid
deterioration of the economy, and we regret to say that thosetargets now look extremely difficult to achieve. Still, there will
be no changes to the basic policies and strategies set out inthe “Create Satisfaction Three-Year Plan,” and we haveupdated our fiscal 2009 action plan as follows for fiscal 2010.
1. Generate steady results in the solutions business forcorporate clients in manufacturing, mail-order andlogistics businesses, and continue to create new
business models.
2. Conduct rigorous portfolio management in order toachieve optimal allocation of management resources.
3. Promote expansion into Asia.

Capital Strategy
The Yamato Group’s earnings appropriation policy is to maintain a healthy balance between business investments andshareholder returns, including share buybacks. ThroughWe are placing particular emphasis on expansion into Asia
in order to secure new growth capabilities.

increases in net income, we also plan to improve net income
per share, with the aim of reaching ROE of 10%.

In the future, we expect the international distribution busi-

Business investments will be used to generate growth forness to gather pace due to the distance between the places

the entire Yamato Group. They will include capital expenditures

where goods are made and where they are consumed. We

centering on our network, as well as investments in new busi-

also expect increased demand for distribution linking Japan tonesses and new product development and investments toother countries. Over the next three years, therefore, we planraise corporate value.

to expand the Group’s business area to cover the Asian

We are also targeting a dividend payout ratio of 30%

region. At the same time, we will build a differentiated founda-

based on consolidated net income. At the same time, we willtion for business by providing seamless supply chain logistics

make flexible use of treasury stock, including to pursue M&A

6

YAMATO HOLDINGS CO., LTD.

opportunities that are consistent with our capital strategy.

Delivery Business: Current Market Status andFuture Outlook

expanding as major manufacturers in various industries jointly

The domestic market for home parcel deliveries grew sharply

build platforms enabling customers to easily return products

after the launch of Takkyubin in 1976 as a consumer-to-

for recalls, repairs, recycling, and other reasons. At Yamato, we

consumer (C2C) delivery service. According to some how-refer to recalls, repairs, and recycling as the “3 Rs.” In the past,

ever, in recent years the market has begun contracting.

most companies issuing recalls lacked the physical capability

What is certain, however, is that the logistics business

Moreover, the consumer-to-business (C2B) market is

to collect defective product returns. Using the resources of thehas changed considerably in the past several years, and I

Yamato Group, however, they can now accept recalls in abelieve that this market remains on a path of growth. For

seamless manner. In addition to pickup and delivery, we pro-example, the business-to-consumer (B2C) market, centeringvide comprehensive support services to address complex

on mail order, continues to show solid growth. Japaneseback-office tasks, such as accepting telephone orders andconsumers are embracing a new lifestyle that allows them toaccount reconciliation after product collection.

conveniently purchase high-quality products at reasonable

With respect to repairs, using Yamato’s services purchas-

prices without leaving the comfort of their own homes. The

ers of electronic goods and other products in need of repair orincreasing prevalence of this lifestyle has been the key factor

upgrade can simply send their items back to the manufacturer,

in the success of the B2C model and we believe the trend isand the repaired product can be delivered back to the cus-

poised to strengthen.

tomer via Takkyubin within two or three days. Under this inno-

The business-to-business (B2b) market, based on distri-vative model, Yamato can also act as agent for collection of

bution between companies, is also growing, driven by compa-

repair fees if required. Recycling works in a similar fashion,

nies in various industries that have adopted cash-flow-driven

mainly with copier toner cartridges and similar products. The

management policies. This model calls for maintenance ofconsumer sends back an empty cartridge, for example, and aminimal inventories with sufficient stock for short-term sales

refilled one is delivered. In all cases, customers can take

only, or adopting made-to-order production. This trend has

advantage of our diverse network of sales channels. On regu-

prompted many companies to use Takkyubin services.

lar business days, this consists of 32,000 sales routes, 3,900

Although using Takkyubin causes delivery costs to increase

directly managed operations, and roughly 270,000 outlets thatvis-à-vis total distribution expenses, it significantly alleviates

handle our services. Customers also benefit from our compre-

the cost burden of maintaining inventories in distribution ware-

hensive support resources, including guaranteed-quality deliv-

houses. The result is a reduction in total distribution costs,

ery, tracking information, and payment agency services. This isachieved in a surprisingly simple way. More and more compa-

a revolutionary framework that has earned us an excellent

nies are coming to recognize the advantages of Takkyubin

response from customers.

services, and more and more company and divisional managers are turning to logistics companies like Yamato.

7

Annual Report 2009

At a Glance

Business Description

Delivery

The Delivery business is involved in small parcel delivery services for thegeneral public and corporations centering on Takkyubin and Kuroneko Mail.
The business has also quickly introduced to the market high value-added
services developed from the customer’s point of view, such as Cool Takkyubin
and Takkyubin Collect.

BIZLogistics

BIZ-Logistics handles logistics and other B2B distribution operations.
BIZ-Logistics helps its corporate clients manage their supply chains byproviding innovative logistics services and reducing total costs, and presents
proposals for optimized logistics systems.

Home
Convenience

Home Convenience is rooted in moving services, lifestyle support services anddistribution services. It provides lifestyle support services tailored closely to theneeds of particular regions. In particular, the installation delivery business
which installs electrical appliances for customers is steadily gaining market
penetration, with the high-value-added technical delivery services now available nationwide.

e-Businesse-Business is involved in a range of information services for corporations,
including ASP services and information system development.
Based on the three keywords “tracking,” “security,” and “packages,” thee-Business strives to provide unique services making the most of the Group’s
management resources.

Financial

The Financial business includes settlement and other financial services targeted at consumers and business customers, beginning with mail order firms.
The business offers several types of settlement methods, including payment
on delivery and payment by credit card. Along with the increasing popularity
of Internet shopping in recent years, we have constructed an environment thatenables customers to conduct transactions with complete peace of mind.

Truck
MaintenanceThis business mainly comprises maintenance of trucks and other vehicles fortransportation companies.

Other

These businesses comprise a broad range of shared services, including highway
transportation and personnel placement services.

(Note)(Note)

8

Note: Starting from fiscal 2009, a new Truck Maintenance business segment has been added, reflecting the strong performance and expectations
for further growth of the vehicle maintenance operations previously accounted for under the Other business segment.

YAMATO HOLDINGS CO., LTD.

Operating Revenues(Millions of Yen)

Operating Income (Loss)

1,000,000

50,000800,000

40,000600,000

30,000400,000

20,000200,000

10,000

0

2007

2008

2009

100,000

0(Millions of Yen)

Share of Net Sales

79.7%
2007

2008

2009

6,000

80,0004,500

60,0003,000
40,000

0

2007

2008

2009

0

60,0001,500

45,0001,000

30,000500

15,000

0

0

7.4%

1,500

20,000

2007

2008

2009

40,000

–500

2007

2008

2009

4.3%
2007

2008

2009

7,500
6,000

30,0004,500
20,0003,000
10,000
0

2007

2008

2009

0

60,00012,00045,0009,000

30,0006,000

15,000

3,000

0

2.6%

1,500

2007

2008

2009

20,000

0

2007

2008

2009

4.3%
2007

2008

2009

2,500
2,000

15,0001,500
10,000
1,000
5,000
0

1.4%

500

2008

2009

5,000

0

2008

2009

40,0004,000

30,0003,000
20,000
2,000

0

0.3%

10,000

1,000

2008

2009

0

2008

2009

9

Annual Report 2009

Delivery

Overview of Operations

Overview of Fiscal 2009

proposal-type marketing approaches by adding value-added

Driven by the basic corporate philosophy in the Delivery

services such as enclosing and sealing of printed materials andBusiness of “Total Reliability,” the Yamato Group aggressively

provision of software for preparing address labels.

pursued the strategy of differentiation from competitors

The Group has been making efforts to improve produc-

through proposal-type marketing approaches, in which ittivity with the aim of further strengthening its management

provides customers with its total service capability, and by

foundation for sustained growth in the future, and has suc-sophistication of service quality.

ceeded in introducing new mechanisms and assigning a

For corporate clients, the Group strove to help themproper workforce in accordance with the volume of business.

solve their logistics problems by offering a combination of its

From the current fiscal year, we have been seeing steadyLT (logistics technology), IT (information technology) and FT

benefits in terms of reduced costs in proportion to income.

(financial technology) functions that it had cultivated in the

Looking ahead, we will continue to pursue improvements to

Takkyubin service.

enhance our earnings structure.

For individual customers, the Group promoted greater

As a result, operating revenues for the year under review

convenience by expanding the address label issuance service

for the Delivery Business were ¥997,898 million, up moder-and tracking shipments service in its membership service

ately by 1.7% from the previous fiscal year. However, operat-called “Kuroneko Members,” in addition to providing refineding income amounted to ¥31,123 million, down 21.9% fromservices by expanding the network of service offices.

the previous fiscal year, despite the effect of reduction in

In the Kuroneko Mail service meanwhile, the Groupvarious costs through productivity improvement due to theincreased business mainly with corporate clients and steadily

effect of underperformance of operating revenue comparedboosted the delivery volumes by taking comprehensivewith the performance forecasts.

Takkyubin Service
Upgrading Information Infrastructure• Parcels Inquiry System• Settlement Service, Such as Payment on Delivery(FY2009)
CenterSmall Group

CenterSmall Group

Base

Arterious
Transportation(Outsource)Base(about 70
centersnationwide)

CenterCenterSmall Group

Small Group* Approximate figure.

10

YAMATO HOLDINGS CO., LTD.

Acceleration of Multi-store (3,900 Stores)• High-density Network with Our Catch-phrase “No Matter What Time
Serve the Customer, No Matter How Many Times Serve the Customer”• Time-differentiated High Service Quality• Delivery System with In-house Employees• Delivery not Dependent on Trucks Actions for Environment and Safety

CenterSmall Group

Customers who expected toreceive packages(Corporate or Individual)

Express Agency:
267,000*
Direct Retail Stores: 3,900 Stores*
Sales Drivers:
54,000*

Customers who demand delivery(Corporate or Individual)

CenterSmall GroupBIZ-Logistics
Overview of Fiscal 2009

well received as services which increase the convenience ofIn the BIZ-Logistics Business, the Yamato Group aggressively

consumers who are users and enhance the customer satis-

took proposal-type marketing approaches that aim at suiting

faction level of client companies. By taking such expansion ofvarious customers by providing comprehensive logistics anddemand as a business opportunity, the Group spun off theinternational cargo transportation services within the Group.

multi-maintenance business as Yamato Multi-MaintenanceOur sales & logistics service, particularly in the domestic

Solutions Co., Ltd. in October in an effort to accelerate thelogistics area, grew steadily as our business model that reduces
the time and cost of logistics was well received by customers.

speed of its growth.
In the trading logistics service in the international logis-

As a result, the Group aggressively expanded business bytics area, the Yamato Group used aggressive marketing tosetting up “Auto-pick factory,” an automated warehouse oper-

increase the sales of “Export Factory” which enables clients

ated 24 hours a day, 365 days a year, in Misato City, Saitama,

to reduce the time and cost of exporting by simultaneously

in October 2008, as well as in Narashino City, Chiba, inhandling packaging for export, documentation and custom

November 2008 and in Osaka City in February 2009.

clearance procedures in one location. However, operating

In the future, the Group will strive to expand business byrevenue in the business decreased due to a decline inaggressively emphasizing its competitive edge in the market

exports notably for the U.S. as a result of the rapid eco-by combining this Auto-pick factory service and refined net-

nomic deceleration.

work in the Takkyubin service business.

Operating revenues for the year under review amounted

In the multi-maintenance business in the domestic logis-

to ¥92,947 million, down 2.9% from the previous fiscal year,

tics area, the Yamato Group provides one-stop services fordue to the weak performance in the mainstay trading logis-

product maintenance from accepting requests for collection

tics service, in addition to the appreciation of the yen. In theof defective products, collection, repair and redelivery of

meantime, operating income was ¥3,195 million, which was

repaired products within the Group, and these have beena decrease of 37.9% from the previous fiscal year.

Recall Support Service

Service
Operation

RecallMarketNotification/
Information

Delivery of Replacement/
Recovery/Maintenance

Data Preparation, Management and Tracing

Speed

One Stop

Security

Integration of LT, IT and FTDelivery Business
Group
Functions(FY2009)

DeliveryTransportation Modes (Takkyubin, Kuroneko Mail, etc.)

BIZ-Logistics

Responsive Network of Maintenance Operations(One-stop Service for Distribution and Simple Repair, etc.)

Home Convenience

National Home Delivery Network for Large Items(Technical Drivers Capable of Installing Large Items, etc.)

Financial

Variety of Settlement Functions

Nationwide Network
Express Agency:
267,000 Stores*
Direct Retail Stores: 3,900 Stores*
Sales Drivers:
54,000*e-Business* Approximate figure.

Data Preparation, Management and Tracing Functions, etc.

11

Annual Report 2009

Home Convenience
Overview of Fiscal 2009

In the moving solution business, the Yamato GroupIn the Home Convenience Business, the Yamato Groupmade an effort to strengthen its competitive edge by renew-

aggressively pursued business such as a nationwide rollout ofing its moving services in October 2008 to enhance thehigh-value-added and technically-supported delivery thatmoving business for corporate clients by offering a service ofprovides customers with convenient and comfortable living.

transportation using a transport box that takes advantage of

In particular, we were able to acquire new customers andour network. However, due partly to the continuation of weakaccelerate the steady market penetration of our delivery withmarket conditions in the overall moving industry, the Groupinstallation business, in which we install and set up electronic

was unable to make a profit.

appliances, on the strength of our nationwide network andAs a result, operating revenues rose 8.9% from the previous

technology capability. However, operating income decreased

fiscal year to ¥53,315 million. On the cost front, subcontracting

mainly due to an increase in vehicle hiring expenses.

expenses for items such as hired vehicles increased. As aresult, the Group posted an operating loss of ¥340 million.

Household Takkyubin Handling Volume

Employees Practice Installation(Items)4,000,000
3,574,772

3,000,000
2,303,909
2,000,000

1,000,000
512,126

0

2007

2008

2009

Household Takkyubin Service
YamatoManufacturer

Consumer
Packaging/Shipment

12

YAMATO HOLDINGS CO., LTD.

Installation/Set-up

e-Business
Overview of Fiscal 2009supermarkets in the development of business with low initial

In the e-Business, the Yamato Group implemented proposal-

costs in a short timeframe.

type marketing that appropriately responds to diversifying

In the future, the Group will try to emphasize its competi-

needs of customers based on the keywords of “tracking,”

tive advantage that it is able to provide the comprehensive

which provides tracking information, “security,” which pro-service capability of the Group to expand business promptly.

vides customers with security, and “package,” which includes
high-quality, low-cost and early introduction of solutions.

Operating revenues amounted to ¥32,273 million, down
1.6% from the previous fiscal year. Operating income was

In the “net-supermarket” business area, in which we¥6,059 million, down 2.7% from the previous fiscal year, due

expect demand will expand, the Yamato Group immediately

to the increase in subcontracting expenses for items such as

seized a business opportunity and built a system to support

cost of goods purchased.

e-Logistics Tracing Solution

Yamato Group Operations
Using Tracing to Achieve Uniform Information Management

Production
Base

Information and Tracking Management
Storage, Transport and Delivery

Customer

Distribution
Base

Flow of Goods

Sales Base

Flow of Goods
Flow of Information

Individual Parcel Management

Yamato Group
Business Partner

Individual Parcel Management Enables Faster,More Accurate Response

Business Partner’s
Customers

13

Annual Report 2009

Financial
Overview of Fiscal 2009
In the Financial Business, the Yamato Group is endeavoring to

The Growing Mail-order Sales Market
and Takkyubin Collect(%)

respond to every means of settlement to meet the needs ofcustomers in an effort to promote business expansion from

16.0
14.7

collection on product delivery to B2B logistics settlement.

14.0

Based on this policy, the Group emphasized the convenience

12.0

to clients engaged in the mail-order business by launching the

10.0

Internet total settlement service “Kuroneko Web Collect” on its

8.0

PC website in August 2008 and on the mobile-based website

6.0

in March 2009, and promoted businesses for supporting the

10.5
9.5

9.0

6.8

7.9
6.5

5.4

4.0

6.7
6.0

enhancement of sales capabilities of mail-order companies.
2.0

Operating revenues amounted to ¥53,608 million, up 4.2%
02005

from the previous fiscal year. However, operating income was¥10,506 million, down 3.8% from the previous fiscal year due
partly to higher expenses.

2006

2007

2008

2009

● YoY change in mail-order sales● YoY change in Takkyubin Collect parcel volume
Source: The Japan Direct Marketing Association

Cash on Delivery Service
1. Purchase Agreement
2. Product Dispatched

3. Delivery
4. Money Collection

Purchaser

Mail-order Company

Hand-over Delivery of ProductConditional upon Payment

Improved Cash-flow to
Mail-order Company

6. Funds Transfer
5. Temporary Holding of Funds

Product Purchase
Price

Delivery BusinessTransport Fee
Flow of Goods
Flow of Money

14

YAMATO HOLDINGS CO., LTD.

Financial BusinessCollection Fee

Truck Maintenance
Overview of Fiscal 2009

In addition, the Group strove to further improve the conve-

In the Truck Maintenance Business, the Yamato Group sup-nience of customers by launching operations of a vehicle man-ported truck transportation and bus service companies byagement system, in which we perform statutory inspections onproviding vehicle maintenance service for 24 hours a day,vehicles under management and provide maintenance-record

365 days a year, to enable customers to receive vehicle

information to corporate customer members on a website.

maintenance service without stopping operations.

Operating revenues amounted to ¥17,555 million, an

To do this, the Yamato Group aggressively expanded theincrease of 54.0% from the previous fiscal year, due to higher

number of “Superworks” vehicle maintenance plants to 13 byrevenues from fuel sales. However, operating income was

the end of the year, adding four plants, which included the full-¥1,711 million, down 16.9% from the previous fiscal year,

scale start-up in July 2008 of the Chiba Plant’s “Superworks.”

due to an increase in upfront investment costs.

Superworks Locations
13 locations total (as of March 31, 2009)

Hokkaido

Yamagata

Miyagi
Fukushima

Ibaraki
Tokyo
Aichi
Mie
Fukuoka

Chiba

Shizuoka

KagawaOkinawa

15

Annual Report 2009

OtherOverview of Fiscal 2009

decreased due partly to sluggish shipment movements as aWith respect to “JITBOX Charter” service, the Yamato Group

result of production adjustments by companies.

took aggressive marketing approaches, supported by a sales

Operating income in other businesses excluding divi-

structure composed of 15 Group companies, to promotedends which Yamato Holdings Co., Ltd. received from

penetration of its product characteristics in inter-company

Group companies grew 163.9% from the previous fiscal

distribution such as just-in-time and frequent, right-volume

year to ¥1,392 million.

delivery by transport box. However, handling volume

Operating Income

Track Record of JITBOX Charter(Millions of Yen)

(Units)35,000491,446

500,000
460,506

30,00030,152400,000

25,00022,903300,000

20,000223,941
200,000

2,000
1,392

1,500

100,000

1,000
528
500
0

16

0

2008

2009

■ Including Yamato Holdings■ Excluding Yamato Holdings

YAMATO HOLDINGS CO., LTD.

2007

2008

2009

Organization(As of March 31, 2009)

Yamato Transport Co., Ltd.
Okinawa Yamato Transport Co., Ltd.

DeliveryYamato Global Express Co., Ltd.
Yamato Architects & Designing Co., Ltd.
Yamato Dialog & Media Co., Ltd.
Express Network Co., Ltd.
Yamato Logistics Co., Ltd.
Yamato Global Logistics Japan Co. Ltd.
Yamato Multi-Maintenance Solutions Co., Ltd.
Yamato Packing Service Co., Ltd.
Yamato Packing Technology Institute Co., Ltd.
Konan Industry Co., Ltd.
Yamato Transport U.S.A., Inc.

BIZ-Logistics

Yamato Transport Europe B.V.
Yamato Transport (Hong Kong) Ltd.
Taiwan Yamato International Logistics Inc.
Yamato Transport (S) Pte. Ltd.
Yamato International Logistics Co., Ltd.
Yamato Transport (M) Sdn. Bhd.
Yamato Logistics India Pvt. Ltd.
Shanghai Wai Gao Qiao Bonded Logistics Zone Yamato Warehouse Co., Ltd.

Home Convenience

Yamato Holdings
Co., Ltd.

Yamato Home Convenience Co., Ltd.
Yamato System Development Co., Ltd.

e-BusinessYamato Career Service Co., Ltd.
Yamato Systems U.S.A., Inc.
Yamato Financial Co., Ltd.

Financial

Fine Credit Co., Ltd.
Yamato Lease Co., Ltd.
Yamato Autoworks Co., Ltd.
Yamato Autoworks Hokushinetsu Co., Ltd.

Truck MaintenanceYamato Autoworks Okinawa Co., Ltd.
Yamato Autoworks Asahikawa Co., Ltd.
Yamato Autoworks Iwate Co., Ltd.
Yamato Autoworks Shikoku Co., Ltd.
Box Charter Co., Ltd.
Yamato Box Charter Co., Ltd.
Yamato•Staff•Supply Co., Ltd.
Yamato Management Service Co., Ltd.

Other

Yamato Multi Charter Co., Ltd.
Kobe Yamato Transport Co., Ltd.
Swan Co., Ltd.
Swan Net Co., Ltd.

Consolidated subsidiaries
Non-consolidated subsidiaries

Yamato Contact Service Co., Ltd.
Nekore Co., Ltd.

17

Annual Report 2009

Corporate Social Responsibility

Compliance is one of the top priorities of management at theEnvironment

Group. As such, the Group believes that the company’s sus-

Deployment of Low-emission Delivery Vehicles

tained growth is largely contingent upon not only business

Under its medium-term plan, the “Create Satisfaction Three-profitability, but also proper conduct as a business group withYear Plan,” the Yamato Group is aiming to reduce its overall

operations that require a high degree of social interaction.

CO2 emission volume to 99% of the levels in fiscal 2007. The

With the interests of all stakeholders in mind, the Group

Group is striving to reach this goal through a more robust

actively conducts social contribution activities to fulfill its

environmental stance, including reductions in fuel usage

Corporate Social Responsibility (CSR) from the perspectives

through the introduction of low-emission vehicles.

of safety, the environment and society in line with the Yamato

As a specific measure for achieving this objective, Yamato
Transport is aiming to put 20,000 low-emission delivery

Group Corporate Philosophy.
The extensive promotion of CSR management in tandemwith business expansion is also an integral part of the “Create
Satisfaction Three-Year Plan,” the Yamato Group’s new

Changes in the Number of Low-emission Vehicles

medium-term management plan for guiding management

20,000policy that we launched in April 2008.
The Group is placing particular emphasis on two elementsof the plan—compliance and environmental concerns.

11,00010,000
9,000
8,000
7,000

Diagram of Yamato Group Corporate Philosophy

6,000
5,000
4,000

Customers

3,000
2,000

Local
residents

Shareholders

1,000
0

’05

’06

’07

’08

’09

’13
(Plan)■ Hybrid Cars
■ Others

Partners

Employees

The
Management
Philosophy

Corporate
StanceEmployee
Code of
Conduct

Yamato Group Corporate Philosophy

Precepts
Founding Spirit

18

YAMATO HOLDINGS CO., LTD.

■ CNG Cars
■ Total■ LPG Carsvehicles into operation by fiscal 2013. In fiscal 2009, we added

especially important safety issue. We have held safety

2,238 low-emission vehicles, including 1,847 hybrids, to bringclasses for children since 1998. Held all over Japan, these

the total to 10,240. This number represents 22.4% of Yamato

classes seek to teach children ways to protect themselves

Transport’s total fleet of vehicles, which accounts for 87% offrom traffic accidents. Taught entirely by Yamato Transport

the Group’s total vehicle fleet.

employees, the fun and entertaining classes employ various
means to teach children about traffic safety. In fiscal 2009,

Opening of Satellite Centers to Reduce
Vehicle Usage

classes were held at 1,539 locations and around 170,000
children participated.

As of March 2009, Yamato Transport had a nationwide network of 958 satellite centers for parcel delivery located primar-

Outside Evaluation

ily in urban centers. Parcel delivery from these satellite centers

The FTSE Group confirms

is conducted primarily through the use of handcarts and bicy-

that Yamato Holdings hascles with attached trailers, rather than motor vehicles.

been independently

The opening of more satellite centers reduces the parcel

assessed according to thedelivery volume per sales driver for a given delivery area. ThisFTSE4Good criteria, andlighter load not only enables drivers to provide more detailed

has satisfied the require-services to each customer, but also helps to curb increases inments to become a con-the number of vehicles required to keep pace with increased

stituent of the FTSE4Good Index Series.

parcel volume. The Group is targeting a network of 1,000
satellite centers across Japan by fiscal 2013.

Created by the global index company FTSE Group, FTSE4Good is an equity index series that is designed to facilitate
investment in companies that meet globally recognized corpo-

Society
Safety Classes for Children

rate responsibility standards.
Companies in the FTSE4Good Index Series have met

The Yamato Group always puts safety first in its businessstringent social and environmental criteria, and are positioned

activities. Preventing traffic accidents involving children is an

to capitalize on the benefits of responsible business practices.

19

Annual Report 2009

Corporate Governance(As of March 31, 2009)

Basic Position on Corporate Governanceexecution, and otherwise endeavor to improve the soundness

Based on its corporate philosophy, the Yamato Group carriesof management and the trust of the public. A full-time staff

out business activities in accordance with the law and social

member has been appointed to assist the auditors to put innorms and actively promotes compliance management. Striv-

place a framework that enables the auditors to smoothly carrying to maximize corporate value by effectively utilizing theout their functions. In addition, Group Auditors’ Liaison Meetings

management resources of the Group is one of the top priori-

are held periodically for the full-time auditors of the major oper-

ties of management, and we work to bolster management

ating companies to confer on auditing policies and procedures,

systems and implement policies to this end.

exchange information and otherwise enhance collaboration.
Meetings with internal auditors are also held periodically to

Status of Corporate Governance Provisions
The Board of Directors, Management Advisory Committee andexchange information.
To further strengthen the audit organization, on June 25,

Executive Committee serve as administrative organs involved

2009 the Company appointed an outside auditor who is ain decision-making, supervision and execution for the Yamato

certified public accountant, making a total of one full-timeGroup. This management structure enables decisions to beauditor and three outside auditors.

made rapidly and precisely on important matters. The number

Outside auditors attend Board of Auditors meetings asof Board members cannot exceed 12 as stipulated in thewell as periodic meetings to exchange opinions with the presi-

Company’s articles of incorporation, and the term of office ofdent and auditors and to present opinions from their own

directors has been set at one year in order to clarify manage-

standpoint as auditors. These meetings also serve to confirm

ment responsibilities for each fiscal year.

the status of directors’ execution of duties, by means including

The Company’ has six Board members, two of whom areoutside directors. Outside directors provide necessary com-questions regarding management policy.
Internal audits are performed by a six-member team thatments and advice on overall management as appropriate fromoperates independently from any other Group organ. Thesethe perspective of managers with rich experience.

internal auditors check whether business and affairs of the

The Board of Auditors is made up of two full-time auditors

Group as a whole are being carried out appropriately andand two outside auditors. Auditors attend meetings of theefficiently based on the annual auditing plan. The results are

Board of Directors and other important meetings to assist

reported to the Board of Directors and the Board of Auditors.

them in conducting audits on the legality of business

20

YAMATO HOLDINGS CO., LTD.

Also, the Group Internal Auditing Committee meets regu-

performed by two certified public accountants, Yutaka

larly for the internal auditors of the operating companies to

Kawakami and Takeshi Kosaka, assisted by another five certi-

confer on auditing policies and audit results, exchange infor-

fied public accountants, seven assistant accountants, andmation, and to otherwise enhance collaboration.

three others.

As the Group’s appointed accounting auditor, Deloitte

The current status of provision for oversight of business

Touche Tohmatsu holds regular meetings with auditors andexecution and management, internal control and related func-

conducts effective accounting audits. Accounting audits aretions at Yamato Holdings is illustrated in the figure below.

Corporate Governance Framework
General Meeting of Shareholders
Elect

Elect

Elect/
Supervise

Board ofAuditors

Audit

Board ofDirectors

ReportReportIndependent
Auditor

Elect

Make decisions/Supervise

Execute business

Management
Advisory Committee

ReportExecutive
Committee

Accounting
audit

Nomination andCompensation
Committee

Propose/ReportCSR Division

Legal Advisor

Propose/ReportInternal
audit

Audit Division

Group Companies

21

Annual Report 2009

Directors and Auditors(As of June 25, 2009)

Director and Chairman

Executive Officers

Keiji Aritomi

Kenji Minaki(Representative Director and President of Yamato System Development Co., Ltd.)

Representative Director,
President and Executive Officer

Kenichi Shibasaki

Kaoru Seto

(Representative Director and President of Yamato Financial Co., Ltd.)

Representative Director,

Toshizo Kurisu

Managing Executive Officer(Financing and Accounting, Investor Relations, Public Relations)Haruo Kanda(Human Resources Strategy, Facilities Strategy and Audit)

Masaki Yamauchi(Representative Director and President of Yamato Logistics Co., Ltd.)

Director and Executive Officer

Makoto Kigawa

Makoto Hasegawa(Representative Director and President of Yamato Transport Co., Ltd.)(Representative Director and President of Yamato Home Convenience Co., Ltd.)

Members of the Board

Takahiro Nishio

Masayoshi Sato
Toshitaka Hagiwara(IT Planning, CSR)

Atsushi Ichino
Auditors

Hiroshi Kawada
Keiko Kitamura
Koji Okawa
Motoharu Yokose

22

YAMATO HOLDINGS CO., LTD.

(Planning and Administration)

Financial

SECTION

Contents
24 Market Data
26 Management’s Discussion and Analysis
32 Consolidated Balance Sheets
34 Consolidated Statements of Income
35 Consolidated Statements of Changes in Equity
36 Consolidated Statements of Cash Flows
37 Notes to Consolidated Financial Statements
44 Independent Auditors’ Report

23

Annual Report 2009

Market Data

Growth in the Express Home Delivery Market

Growth of Takkyubin

Trends in Parcel Delivery Volume

Takkyubin is the Yamato Group’s flagship service offering. Since its

This survey uses company-reported parcel delivery volume data com-launch in 1976, we have pursued a strategy of differentiation based on

piled by the Ministry of Land, Infrastructure, Transport and Tourism. In

development of additional strategic offerings such as Cool Takkyubin

the data, “parcels” denotes individual packages weighing less than 30

and Takkyubin Collect, and improvement of delivery quality, includingkg, irrespective of the type of delivery (C2C, B2C, or B2B).

enhanced features such as Time Period Delivery and Driver Direct

However, lots in which multiple packages are sent together andservices. As a result of these efforts, the Yamato Group outperformed

parcels that do not require a signature on delivery are not counted as

the growth in the express home delivery market as a whole, and we“parcels” for the purposes of the survey.

steadily expanded our market share.

Trends in Delivery Volume(Millions of Parcels)

3,600
3,400

As a result of the privatization of
the postal services in October
2007, Japan Post Service Co.,
Ltd. now falls under the jurisdiction of the Motor-truck Transport
Business Law, and is includedin the survey starting fromfiscal 2007.

Transport Method
Truck
Total Number of Deliveries

3,200
3,000
2,800

3,198 3,177

2,843

2,897 2,908

2,803
2,722
2,626

2,600
2,540

2,400

In fiscal 1999, certain firms
switched their existing parcels to
express home delivery, and thedata for the year reflects thisincrease. Excluding this extraordinary factor, year-on-year
growth was 5.9%.

2,200
2,000
1,800

2,326

1,806

1,600
1,591
1,509

1,400
1,419
1,318

1,200

1,237
1,101

1,000

1,125

1,183

1,029
911

800
762

600

612
493

400
385

200
0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Notes: 1. “Total Number of Deliveries” includes express home delivery services involving transport by truck, air, and other methods.
2. The number of Hikyaku Express (Sagawa Express Co., Ltd.) deliveries in 2008 has been revised from 1,078,520,000 to 1,049,380,000.

24

Source: Statistical survey from the Ministry of Land, Infrastructure, Transport and Tourism.

YAMATO HOLDINGS CO., LTD.

Currently, we are moving beyond developing strategic offerings

In fiscal 2009, the Yamato Group transformed itself into a solution

and simply improving service quality. Targeting business areas where

provider, and at the same time implemented fundamental operational

future growth is anticipated, we are creating new businesses andreforms in the Takkyubin business which we have been running for oversolution models driven by the three functions of logistics technology

30 years. The fact that our Takkyubin service has been able to continu-(LT), information technology (IT), and financial technology (FT), toously hold the top market share among parcel delivery services is a testi-achieve further growth in the Takkyubin service.

mony to the innovative spirit we have displayed ever since our founding.

Timeline of New Product Development(Millions of Parcels)

1,500

2009 Enhancement of e-money Services
2009 5 Solution Models

YamatoJapan Post

2007 Kuroneko Members service launched

1,200

2002 Start of Driver Direct service
1998 Start of Time Period Delivery

900

Enhancing
services by proposing
solutions1996 Start of year-round operations

600

Enhancingdelivery-side
customer service

1988 Cool Takkyubin service launched1986 Takkyubin Collect launched

Enhancingsender-side
customer service

300

01976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Japan Post Service Co., Ltd.
Japan Post Holdings Co., Ltd.

Market Share(Millions of Parcels)

(%)

10.0

4,000
3,500
3,000
2,500
2,000

21.0%
5.7%

15.9%

16.6%

16.9%

16.2%

5.8%
15.0%

5.7%

6.1%
12.3%

7.0%
11.4%

31.0%

30.8%

33.7%

34.6%

13.3%

15.7%

1,500
24.6%

29.4%

30.4%

33.0%

33.9%

34.0%

1,000
500

14.3%
7.8%

12.0%
8.4%
10.4%

9.6%

8.9%

8.4%

8.7%

10.4%

10.3%

8.0
6.0

10.8%
33.4%

31.5%
32.4%

35.6%

36.8%

33.4%
38.2%

38.7%

0

4.0
2.0

■ Yamato■ Sagawa■ Nippon Express■ Japan Post
■ Other● Market (YoY)● Yamato (YoY)

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

Sources: Ministry of Land, Infrastructure, Transport and Tourism and Japan Post Holdings Co., Ltd.

-2.0

25

Annual Report 2009

Management’s Discussion and Analysis

Scope of Consolidation

Results of Operations

At the end of the fiscal year ended March 31, 2009 (fiscal 2009), theIn the fiscal year ended March 31, 2009, the business environment

Yamato Group consisted of Yamato Holdings Co., Ltd. (the Company),remained extremely challenging as a result of the sudden economic

44 subsidiaries, and four affiliated companies.

deterioration triggered by the global financial crisis.

The number of subsidiaries included in the consolidated statements

Under these conditions, the Yamato Group rallied together towas 29 at the previous fiscal year-end, but increased to 32 at the end ofactively develop business under the “Create Satisfaction Three-Year

fiscal 2009. Three subsidiaries which have increased in importance havePlan,” which began in the fiscal year under review. These efforts

been added to the scope of consolidation from fiscal 2009: Yamato

included creating a solutions business geared toward corporate cli-

Global Express Co., Ltd., which took over express operations froments, combining logistics technology (LT), information technology (IT),Yamato Transport, Co., Ltd., Yamato Global Logistics Japan Co., Ltd.,and financial technology (FT).

which took over international distribution service operations primarily in

In particular, in the Delivery business, the Group sought to boost

forwarding for the BIZ-Logistics business, and Yamato Multi-Maintenancecost-competitiveness and enhance service at the same time by

Solutions Co., Ltd., which took over maintenance operations fromreforming Takkyubin operations to improve productivity, while aiming to

Yamato Logistics Co., Ltd. There were no affiliates accounted for by thefurther strengthen the management base with a view to realizing sus-

equity method at the end of the period under review.

tained growth.
As a result, consolidated operating revenues for the year
amounted to ¥1,251,922 million, up 2.1%, from the previous fiscal
year. Operating income, however, was down 18.3% year on year to¥55,721 million. Ordinary income was ¥57,822 million, 18.1% lower
than the previous fiscal year. Net income fell 27.8%, to ¥25,523 million.

Operating Revenues

Operating Income / Operating Margin(Millions of Yen)

(Millions of Yen, %)80,0001,400,000
1,225,974
1,200,000

1,144,961

8.00

1,251,922

1,161,568

1,071,903

68,721

67,161

6.00

5.78

68,18060,0001,000,000

51,203800,000

55,721

6.00

5.56

4.78
4.45

40,0004.00

600,000
400,000

20,0002.00

200,000
0

FY’05

’06

’07

’08

’09

0

FY’05

’06

■ Operating Income

’07

’08

’09

0

● Operating Margin (right scale)

Net Income (Loss) / Return on Revenues(Millions of Yen, %)40,00033,848
3.16

33,81335,353

2.91

2.88

5.00
25,5232.04

20,0000

0(20,000)(2.50)(2.09)(23,968)(40,000)(5.00)

FY’05

26

YAMATO HOLDINGS CO., LTD.

2.50

’06

■ Net Income (Loss)

’07

’08

’09

● Return on Revenues (right scale)Review by Operating Segment
Creation of New Business Category
Starting from the fiscal year ended March 31, 2009, the Truck Mainte-and expectations for further growth of the vehicle maintenance opera-

nance business has been added, reflecting the strong performancetions previously accounted for under Other business.

Deliveryvalue-added products such as printed enclosures, seals, and provision

The Delivery business faced a challenging business environment dueof address label printing software.

to the sudden economic deterioration triggered by the global financial

Management believes it has achieved a certain level of success incrisis. Nevertheless, the door-to-door parcel delivery market as aaggressively pursuing cost competitiveness through reforms to thewhole remained relatively firm, falling only 0.6% year on year.

Takkyubin operations, and for the Group’s ability to limit costs in line

The Yamato Group struggled with lower unit prices for Takkyubinwith revenues, particularly in the second half. The same is true for theservices, which affected revenues. Due to efforts to minimize thegradual effects of the solutions business geared toward corporate

drops in unit prices, total delivery volume only nudged down 0.3%

clients fusing logistics technology (LT), information technology (IT), andfrom the previous fiscal year to 1,232 million parcels, althoughfinancial technology (FT).

marking the first year-on-year decline since the launch of Takkyubin
services in 1976.

As a result, operating revenues in the Delivery business were¥997,898 million, a slight increase of 1.7%, falling short of target. As a

In Kuroneko Mail services, total handling volume rose by 1.2% to2,231 million units thanks to comprehensive proposal sales offering

Takkyubin Delivery Volume / Unit Prices

result, despite cost-reduction effects achieved through increased productivity, operating income fell to ¥31,123 million, down 21.9% year on year.

Cool Takkyubin Handling Volume(Millions of Parcels, Yen)

(Millions of Parcels)

1,500

200

1,200

1,128

1,174

1,236

1,232
150

1,063
1,000

129

800

666

653

647

644

155

154

’08

’09

145

100

645*

500

137

400
50

0

FY’05

’06

’07

■ Takkyubin Delivery Volume

’08

’09

0

0

FY’05

’06

’07

● Unit Prices (right scale)

Takkyubin Collect Handling Volume

Kuroneko Mail Delivery Volume / Unit Prices(Millions of Parcels)(Millions of Units, Yen)

100

94

150

2,500

89

2,206

83
78

80

1,970

2,000

60

1,500

40

1,000

20

500

FY’05

120

1,734

68

0

2,231

’06

’07

’08

’09

0

90

1,432

73

69

66

figure includes the ¥2,960 million for parcels delivered by Yamato Global Express. If calculated on
the same basis as last year, the unit price for the previous fiscal year would be ¥643.

65

60

30

FY’05

’06

’07

■ Kuroneko Mail Delivery Volume* In line with the division of the express business, starting from the fiscal year under review, this

64

’08

’09

0

● Unit Prices (right scale)27

Annual Report 2009

BIZ-Logistics

Financial

BIZ-Logistics leverages logistics technology (LT), information technol-

The Financial business is currently expanding from delivery settlementogy (IT), and financial technology (FT) to create a business model that

services to business-to-business logistics settlement. During the year

supports customers’ sales and production operations, and aggres-under review, the business took steps to respond with increasingly

sively developed sales.

diverse settlement methods tailored to customer requirements.

In the domestic sales of logistics services, performance was

For customers involved in the mail-order business, in August 2008

strong in the Today Shopping Service solution model for corporate

the Group launched the PC-based version of Kuroneko web Collect, aclients, which supports sales through shortened lead-times and bycomprehensive web-based settlement service. In March 2009, alowering costs through dispersed inventories and consolidated ship-

mobile version was added to enhance the convenience of the service,ping. The Multi-Maintenance solution for manufacturers, whichin addition to other steps to promote business development and lead

reduces the lead-time for consumers for repair or maintenance, also

to increased sales power for mail-order companies.

performed strongly. In the wake of the sudden economic recession,Operating revenues in the Financial segment rose 4.2% to

however, trade logistics services, which supports international exports,¥53,608 million, while operating income dropped 3.8% to ¥10,506

saw lower revenues as a result of decreased export volume, particu-

million, due in part to various costs.

larly to the U.S.
As a result, operating revenues in the BIZ-Logistics segment

Truck Maintenancedropped 2.9% to ¥92,947 million, while operating income fell 37.9%

The Truck Maintenance business expanded its business by providing

to ¥3,195 million.

year-round, 24-hour a day vehicle servicing to support customers
operating truck and bus transport.

Home Convenience

The Group aggressively expanded the number of vehicle service

In September 2007, the Yamato Group integrated MOVING CO., LTD.,

locations. Four new facilities were added, including the Chiba Super-working to achieve steady market penetration by leveraging theworks facility, which began full-fledged operations from July 2008,

Group’s nationwide delivery network in the Installation Delivery service,bringing the total number of locations to 13 as of March 31, 2009.

which combines a household appliance and furniture delivery function
with a technical installation component.
In the moving services business, the Group sought to strengthen its
competitiveness by revamping its moving services lineup in October

In addition, a Vehicle Management System was launched, allowing
member clients to view managed vehicle servicing histories on theWeb. Through these and other measures, the company strove toenhance convenience to customers.

2008, hoping to take advantage of its network to attract corporate

Operating revenues were ¥17,555 million, up 54.0% year on year.

customers through box-unit shipping. Amid the overall slump in the

Operating income however decreased by 16.9% to ¥1,711 million due

moving industry, however, the business was not able to generate a profit.

to increased costs resulting from up-front investments.

As a result, operating revenues in the Home Convenience segment rose 8.9% to ¥53,315 million. However, the segment posted an

Otheroperating loss of ¥340 million.

The JITBOX Charter service, which provides just-in-time, highfrequency, right-volume delivery by transport box for customers

e-Business

distributing goods between companies, aggressively sought toIn the e-Business segment, the Group promotes its sales support

expand sales through its sales structure based on a group of 15

solution model, in which the Group leverages logistics technology (LT),companies. From the second half of the year, however, the number

information technology (IT), and financial technology (FT) under theof deliveries fell under the impact of slower shipments due to cor-

keywords of ‘tracking,’ ‘security,’ and ‘package,’ providing high quality

porate production adjustments.

at a low cost and with short introduction times.
In the Internet supermarket field, where demand is projected
to grow, the Group took steps to seize this business opportunity
as early as possible. To this end, it created a business support
system for supermarkets that can be implemented quickly and at
low initial cost.
Operating revenues in the e-Business segment declined 1.6% to¥32,273 million, while operating income fell 2.7% to ¥6,059 million.

28

YAMATO HOLDINGS CO., LTD.

Excluding dividends received by Yamato Holdings Co., Ltd. fromGroup companies, operating income amounted to ¥1,392 million, up
163.9% from the previous fiscal year.

Financial Review

Investing Activities

Operating Costs

Net cash used in investing activities totaled ¥23,095 million. ThisIn fiscal 2009, the Company recorded consolidated operating costs

mainly reflected ¥36,986 million in purchases of property, plant andand expenses of ¥1,196,201 million, up 3.3%, from the previous fiscal

equipment, partially offset by a ¥13,160 million gain on sale of invest-

year. Significant components of the operating costs were as follows.

ment securities.

From the fiscal year under view, the express business of Yamato
Transport Co., Ltd. has been handled by Yamato Global Express Co.,

Financing Activities

Ltd. The resulting subcontracting expenses are as follows.

Net cash used in financing activities was ¥28,830 million. This was

The chart below includes the impact of the division.

primarily due to ¥10,387 million in dividends paid and a ¥13,809
million decrease in loans.

Breakdown of operating costs

Years ended March 31
Personnel expenses
Subcontracting expenses
Vehicle expenses
Other expenses
Elimination of internal
procurement costs
Total(Millions of Yen)2008
¥ 609,994
430,023
38,946
256,6682009¥ 621,115
490,941
41,664248,258

Change¥ 11,121
60,9182,718(8,410)(177,837)(205,777)¥1,157,794 ¥1,196,201(27,940)¥ 38,407

Financial Condition
At March 31, 2009, total assets amounted to ¥869,606 million,
down ¥4,613 million from a year earlier. This was mainly due torecording of ¥9,092 million in lease assets as a result of the application of the accounting standard for lease transactions, which wasin the Financial business.
Liabilities totaled ¥383,347 million, down ¥14,888 million from the

Significant components of the operating costs excluding theprevious year-end. This was due primarily to a decrease of ¥13,806

impact of the division of the express business were as follows.
(Reference) Breakdown of operating costs

outweighed by a ¥15,650 million decrease in installment receivables

million in short-term bank loans and long-term debt.

(Millions of Yen)

Total equity at March 31, 2009 amounted to ¥486,259 million,

Years ended March 31

2008

2009

Changeup ¥10,275 million from the previous fiscal year-end. This was due

Personnel expenses¥ 609,994¥ 619,077¥ 9,083

mainly to an increase of ¥15,324 million in retained earnings resulting

Subcontracting expenses

430,023

436,074

6,051

from ¥25,523 million in net income and ¥10,193 million in payment

Vehicle expenses

38,946

41,6642,718

of cash dividends.

Other expenses

256,668

258,313

1,645

Elimination of internal
procurement costs
Total(177,837)(186,440)(8,603)¥1,157,794¥1,168,688¥10,894

Net Income
In fiscal 2009, income before income taxes and minority interests

As a result of the above, the equity ratio rose from 53.3% to 54.7%.

Operating and Investing Cash Flows /Free Cash Flows*(Millions of Yen)
150,000
116,896

decreased ¥18,600 million, or 27.5%, to ¥48,996 million. Income
taxes declined ¥8,098 million, to ¥23,349 million.
After deducting income taxes of ¥23,349 million and minority

100,000
76,64250,00084,67536,65230,404interests of ¥124 million, net income was ¥25,523 million, down
¥9,830 million, or 27.8% year on year. As a result, net income pershare was ¥57.60, and return on equity (ROE) was 5.4%.

84,46361,36880,763

19,8650

4,857(23,095)(50,000)(39,990)

The annual dividend was ¥22.00 per share.

(54,271)(60,898)(100,000)

Cash Flows
Operating Activities
Net cash provided by operating activities in fiscal 2009 amounted to¥84,463 million. Major factors included ¥48,996 million in income(112,039)(150,000)

FY’05

’06

■ Operating Cash Flows

’07

’08

■ Investing Cash Flows’09● Free Cash Flows* Free Cash Flows = Operating Cash Flows + Investing Cash Flows

before income taxes and minority interests, as well as ¥42,697 million
in depreciation and amortization.

29

Annual Report 2009

Capital Expenditures

Forecasts for Fiscal 2010

Capital expenditures in fiscal 2009 totaled ¥45,856 million, down

The domestic economy is expected to see negative growth in the¥78,976 million, or 63.3%, from the previous fiscal year. The follow-

shadow of global-scale economic deterioration, and conditions are set

ing is a breakdown of capital expenditures.

to remain challenging going forward.
The Yamato Group, however, sees changes in the supply chain(Millions of Yen)and general consumer purchasing styles as a business opportunity.

2008

2009

Going forward, the Group will work to further differentiate itself by¥106,991¥33,923

creating a solutions business geared toward the high growth-potential

1,437

2,153

area of corporate clients, combining logistics technology (LT), informa-

Home Convenience

375

627

tion technology (IT), and financial technology (FT) and increasing

e-Business

606

3,824

market penetration of the Kuroneko Members individual members’

Financial

13,503

1,912

service. At the same time, aggressive efforts will be made to promote

–

3,099

stronger cost-competitiveness through productivity-enhancing reforms

1,912

292

8

26

¥124,832¥45,856

Delivery
BIZ-Logistics

Truck Maintenance
Other
Eliminations or Corporate
Total

Major changes in the delivery business network are detailed below.

to Takkyubin operations.
Management forecasts operating revenues of ¥1,227 billion,
operating income of ¥58.5 billion, ordinary income of ¥61.0 billion, andnet income of ¥31.5 billion for fiscal 2010.

Network

2008

2009

Increase/
Decrease

Number of vehicles

52,94752,287

Number of delivery channels

13,391

13,301(90)

Number of sub-agents

274,924

266,896(8,028)(660)

Interest-bearing Liabilities / Total Equity

Capital Expenditures(Millions of Yen)

(Millions of Yen)

500,000

475,984

458,792

486,259

140,000

451,695

123,591

423,690

120,000

400,000
100,000
300,000

80,00060,000200,000

97,894

100,000

96,426112,22240,00047,72647,524’06’07

49,16039,806

107,427
20,00015,458
0

FY’05

’06

’07

■ Interest-bearing Liabilities

’08

’09

■ Total Equity

0

FY’05

’08

’09

■ Vehicles ■ Land ■ Buildings■ Equipment ■ Others

Note: Total capital expenditures for 2008 include the expenditures
related to Haneda Logistics Terminal of ¥81,190 million.

30

YAMATO HOLDINGS CO., LTD.

Major Risk Factors(7) Administrative Sanction and loss of Social Trust as a Result of a

The Yamato Group believes that the following matters related to the

Major Traffic Accident

implementation of the Group’s business operations may have a signifi-

1. A major traffic accident could occur, leading to a decline incant impact on the decisions of investors. It should be noted thatforward-looking statements in this document are based on information
available as of March 31, 2009.

the degree of social trust accorded to the Group.
2. The Group could be placed under government sanction andordered to halt use of vehicles, and offices could be required
to halt business or their business permissions could be(1) Legal Regulation

revoked, causing discontinuities or cessation of business.

The Group’s business activities could be restricted by law orordinance, resulting in a decline in sales and an increase in costs
to achieve legal compliance.
(2) High Dependency on Takkyubin Business for Operating Revenues(8) Official Regulation due to Environmental Issues
Unexpectedly strict environmental regulations could be enacted.
(9) Natural Disaster, Power Outages, Etc.

1. The rate of growth in the home delivery market could slow

Roads and other infrastructure could be damaged as a result of adue to domestic economic trends, the natural environment,

natural disaster, or cargos could become stalled if electric powerincluding inclement weather conditions, changing customs

supply is cut off due to a natural disaster or power outage.

with regard to sending midsummer, year-end and other gifts,
or other factors.
2. Unit prices could decline beyond the range expected and theGroup’s customers could switch to its competitors as a result(10) Computer Viruses and Criminal Hacking Activity
The Yamato Group could be subject to an unanticipated regional
disaster, computer virus infection, or attack by hackers.

of fierce price competition among companies in the industry.
(11) International Factors(3) Securing Human Resources

1. The geographical regions where the Yamato Group or its

The Yamato Group could be unable to continuously hire compe-

main business partners are active could be subject to acts oftent staff, allocate staff to appropriate positions, and keep

terrorism, war or other international conflicts, or spread of

employees in the Group by developing a good work environment and improving training and education systems.

disease such as new strains of influenza.
2. The stable supply of diesel or other fuel could be restricted
due to international events, or fuel prices could remain(4) Leakage of Business Know-how Resulting From Personnel

persistently high.

Leaving the Group
Various kinds of know-how, such as ways to develop new prod-(12) Credit Exposure Management and Interest Rate Fluctuations

ucts and methods of building networks, could be leaked outside

1. Personal bankruptcies could remain at a high rate due tothe Group when personnel leave their employment and it may
not be possible to effectively prevent a third party from providing
similar services.

economic trends and other factors, making increases in thecost of credit exposure management likely.
2. It could become difficult to absorb the rising cost of funding
procurement due to greater-than-anticipated, sharp increases(5) Loss of Trust in the Yamato Group

in long- and short-term interest rates.

An incident such as damage to or loss of packages entrusted to
Takkyubin or Kuroneko Mail, or a similar major flaw in services or
products could lead to a loss of society’s trust in the Group.
(6) Leak of Customer Information
Leakage of information outside the Group due to negligent controls over customer information or similar could lead to a loss ofsociety’s trust in the Group or a claim for payment of damages.

31

Annual Report 2009

Consolidated Balance Sheets
March 31, 2009 and 2008
Thousands of
U.S. Dollars(Note 1)Millions of Yen

ASSETS

2009

2008

2009

¥ 179,753¥ 147,569$ 1,829,920

Trade138,405

144,275

1,408,984

Installment (Note 3)

62,062

77,712631,800

Lease (Note 11)

19,778

Allowance for doubtful accounts(5,405)CURRENT ASSETS:
Cash (Note 2.d)Notes and accounts receivable:

201,344(5,477)(55,026)

Inventories (Note 4)

2,388

2,298

24,312

Deferred tax assets (Note 10)

18,017

17,686

183,416

Prepaid expenses and other current assets

20,711

20,531

210,847435,709404,594

4,435,597

Land (Note 6)

177,761

176,916

1,809,635

Buildings and structures (Note 6)

261,077

252,399

2,657,817

Vehicles177,590

173,383

1,807,901

Leased assets (Note 11)15,338

Machinery and equipment

96,183

91,135979,155

Total current assets

PROPERTY, PLANT AND EQUIPMENT—At cost:

Construction in progress
Others
Total
Accumulated depreciation
Net property, plant and equipment

156,146

638

746

6,498

1,627

34,59816,566730,214729,177

7,433,718(371,409)(361,841)(3,781,019)

358,805367,336

3,652,699

18,93041,726

192,709

731

1,309

7,445

INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 5)
Investments in and advances to non-consolidated subsidiaries and affiliates, net ofvaluation allowance of ¥91 million ($926 thousand) in 2009 and ¥118 million in 2008
Long-term loans

2,014

2,862

20,501

Lease deposits

24,61725,521

250,601

Deferred tax assets (Note 10)15,45813,215

157,370

Other assets

13,342

17,656

135,82875,092102,289

764,454¥ 869,606¥ 874,219$ 8,852,750

Total investments and other assets
TOTAL
See notes to consolidated financial statements.

32

YAMATO HOLDINGS CO., LTD.

Thousands of
U.S. Dollars(Note 1)Millions of Yen

LIABILITIES AND EQUITY

2009

2008

2009

¥ 14,450¥ 18,249$ 147,109

32,88922,008334,814Trade

117,899

122,791

1,200,230

Construction

10,432

7,291

106,198

17,56920,571

178,860

CURRENT LIABILITIES:
Short-term bank loans (Note 7)
Current portion of long-term debt (Note 7)
Notes and accounts payable:

Income taxes payable
Employees’ savings deposits

3,382

3,359

34,429Accrued expenses

52,487

52,820534,327

Deferred profit on installment sales (Note 3)

11,556

16,096

117,643

Other current liabilities

15,10816,054

153,802275,772

279,2392,807,412

Long-term debt (Note 7)

60,08871,965

611,710Long-term accounts payable

15,77015,784

160,544

Liability for employees’ retirement benefits (Note 8)

28,397

27,215

289,0868

14

81

Total current liabilities
LONG-TERM LIABILITIES:

Retirement allowances for directors and corporate auditors
Deferred tax liabilities (Note 10)

573

2,019

5,830

2,739

1,999

27,882

107,575

118,996

1,095,133

Common stock—authorized, 1,787,541,000 shares in 2009 and 2008;
issued, 457,315,176 shares in 2009 and 457,309,400 shares in 2008

120,729

120,725

1,229,042

Capital surplus

114,814

114,847

1,168,833

Retained earnings

266,035

250,7112,708,287

1,552

5,994

15,800

Other long-term liabilities
Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES (Notes 11 and 12)
EQUITY (Notes 7, 9 and 15):

Unrealized gain on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments
Treasury stock—at cost, 14,227,149 shares in 2009 and 14,106,234 shares in 2008
Total

(63)
(877)

(93)

(8,934)(26,438)(26,320)(269,143)

475,815465,801

4,843,885

Minority interests

10,444

10,183

106,320

Total equity

486,259

475,984

4,950,205¥869,606¥874,219$8,852,750

TOTAL

33

Annual Report 2009

Consolidated Statements of Income
Years Ended March 31, 2009 and 2008
Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING REVENUES

2009

2008

2009

¥1,251,922¥1,225,974$12,744,802

1,167,764

1,129,008

11,888,058

OPERATING COSTS AND EXPENSES:
Operating costs
Selling, general and administrative expenses

28,43728,786

289,494

Total operating costs and expenses

1,196,201

1,157,794

12,177,552

55,721

68,180567,250

Interest and dividend income

(859)

(905)

(8,744)

Interest expense

955

307

9,724

Gain on sales of marketable and investment securities(128)(1,216)(1,305)

Loss (gain) on sales of investments in subsidiaries

357

(1)

3,629

Loss on valuation of investment securities

6,209

2,439

63,212

Loss on disposal of property, plant and equipment

1,138

399

11,581

Loss on impairment of long-lived assets (Note 6)974

Operating income
OTHER (INCOME) EXPENSES:

Bond issuance costs

9,920

14

14

144

(1,935)(453)(19,700)

6,725

584

68,461

48,996

67,596

498,789

Current

25,44731,927

259,054

Deferred(2,098)(480)(21,358)

23,34931,447

237,696

Other—net
Other expenses—net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXES (Note 10):

Total income taxes
MINORITY INTERESTS IN NET EARNINGS OF CONSOLIDATED SUBSIDIARIESNET INCOME

124
¥

796

25,523¥35,353

Yen

1,259
$

259,834

U.S. Dollars

2009

2008

2009

PER SHARE OF COMMON STOCK (Notes 2.s and 13):
Basic net income

¥

57.60

¥

79.80

$

0.59

Diluted net income

56.45

78.12

0.57

Cash dividends applicable to the year

22.00

22.00

0.22

See notes to consolidated financial statements.

34

YAMATO HOLDINGS CO., LTD.

Consolidated Statements of Changes in Equity
Years Ended March 31, 2009 and 2008

Thousands

BALANCE, APRIL 1, 2007

Millions of Yen

Outstanding
Number of
Shares ofCommonStockCommonStockCapitalSurplusRetained
Earnings

Unrealized
Gain onAvailablefor-sale
Securities

442,770¥120,717¥114,894¥224,226¥12,583

Deferred
Loss onForeign
Derivatives
Currency
underTranslation
Hedge
Accounting Adjustments

Treasury
Stock

Total

Minority
Interests

Total
Equity¥ (26)¥(27,131)¥445,263¥ 6,432¥451,695

Net income

35,35335,35335,353

Cash dividends, ¥20 per share(8,860)(8,860)(8,860)Adjustment of retained earnings for changes inthe scope of consolidation(8)

Purchase of treasury stock(158)

Disposal of treasury stock

577

Shares issued on conversion of convertible debt

14

(56)
8

443,203

120,725

(8)

(267)

(267)

1,078

1,022

1,022

9

17

Net change in the year
BALANCE, MARCH 31, 2008

(8)
(267)

114,847

Adjustment of retained earnings due to an adoptionof PITF No. 18 (Note 2.b)

250,711(6,589)

¥(63)

(67)

5,994

(63)

(93)

(26,320)17(6,719)3,751(2,968)465,801

10,183475,984

(4)

(4)

(4)

Net income

25,52325,52325,523

Cash dividends, ¥23 per share(10,193)(10,193)(10,193)

Adjustment of retained earnings for changes inthe scope of consolidation(2)

Purchase of treasury stock(172)

Disposal of treasury stock51

Shares issued on conversion of convertible debt

6

(36)
4
¥120,729

(213)

95

59

59

7
(4,442)443,088

(2)

(213)

3

Net change in the year
BALANCE, MARCH 31, 2009

(2)
(213)

¥114,814¥266,035¥ 63¥ 1,552(784)¥(877)

7(5,163)261(4,902)¥(26,438)¥475,815¥10,444¥486,259

Treasury
Stock

Total

Minority
Interests

Total
EquityThousands of U.S. Dollars (Note 1)

CommonStock

BALANCE, MARCH 31, 2008

CapitalSurplusRetained
Earnings$1,229,006 $1,169,163 $2,552,282

Adjustment of retained earnings due to an adoptionof PITF No. 18 (Note 2.b)Unrealized
Gain onAvailablefor-sale
Securities$ 61,018

Deferred
Loss onForeign
Derivatives
Currency
underTranslation
Hedge
Accounting Adjustments$(636)$ (949) $(267,939) $4,741,945 $103,661 $4,845,606

(43)

(43)

(43)

Net income

259,834

259,834

259,834

Cash dividends, $0.23 per share(103,767)(103,767)(103,767)

Adjustment of retained earnings for changes inthe scope of consolidation(19)

Purchase of treasury stock
Disposal of treasury stock
Shares issued on conversion of convertible debt

(365)
36

35

Net change in the year
BALANCE, MARCH 31, 2009(19)

(2,167)(2,167)

963

598

598

71
(45,218)$1,229,042 $1,168,833 $2,708,287(19)(2,167)$ 15,800$ 636(7,985)(52,567)

71
2,659(49,908)$(8,934) $(269,143) $4,843,885 $106,320 $4,950,205

See notes to consolidated financial statements.

35

Annual Report 2009

Consolidated Statements of Cash Flows
Years Ended March 31, 2009 and 2008
Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Loss on disposal of property, plant and equipment
Loss on impairment of long-lived assets
Loss (gain) on sales of marketable and investment securities
Loss on valuation of investment securities
Changes in assets and liabilities, net of effects from newly consolidated subsidiaries:
Decrease in notes and accounts receivable
Decrease (increase) in inventories(Decrease) increase in notes and accounts payables
Increase in liability for employees’ retirement benefits
Other—net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Proceeds from sales of marketable and investment securities
Purchases of marketable and investment securities
Payment for acquisition and succeeding the delivery business
Increase in investments in and advances to non-consolidated subsidiaries and affiliates
Cash collected from long-term loans
Cash advanced for long-term loans
Other
Net cash used in investing activities
FINANCING ACTIVITIES:
Proceeds from short-term bank loans
Repayments of short-term loans
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
Repurchase of treasury stocks
Other
Net cash (used in) provided by financing activities
FOREIGN CURRENCY TRANSLATIONADJUSTMENTS ON CASH AND CASH EQUIVALENTS
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS OF NEWLYCONSOLIDATED SUBSIDIARIES, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS INCREASED BY CORPORATE DIVISIONCASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.d)See notes to consolidated financial statements.

36

YAMATO HOLDINGS CO., LTD.

2009

2008

¥ 48,996¥ 67,596(27,370)
42,697
1,138
974
229
6,209

(32,396)
44,772399(1,222)2,439(278,631)
434,662
11,5819,920
2,324
63,212

16,963782(4,026)
1,193(3,322)35,46784,463

17,501(67)
15,4971,292
1,085
49,300116,896

172,691
7,961(40,983)
12,143(33,822)361,058
859,847559(36,986)
10,158(11)

5,691(376,521)
103,415
(112)

(403)
1,384
(533)
2,737
(23,095)

1,114(114,778)
9,423(1,011)(5,570)(262)
1,940(1,633)(1,262)(112,039)

114,500(122,784)
12,000(22,008)(10,387)(154)
3(28,830)

33,750(49,442)
34,000(2,737)(9,023)
755
(2)
7,301

1,165,632(1,249,966)
122,162(224,046)(105,745)(1,569)35(293,497)(458)
32,080(22)
12,136(4,662)
326,58210123
17130,145¥ 142,321

1,027

142,321¥ 174,502

2009$

498,789(4,101)
14,086(5,431)
27,867(235,106)

1,448,859$ 1,776,468

Notes to Consolidated Financial Statements
Years Ended March 31, 2009 and 2008
1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared inaccordance with the provisions set forth in the Japanese Financial Instruments andExchange Act and its related accounting regulations, and in conformity with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain
respects as to application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements
issued domestically in order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications and rearrangements
have been made in the 2008 consolidated financial statements to conform to theclassifications and presentations used in 2009.
The consolidated financial statements are stated in Japanese yen, the currencyof the country in which Yamato Holdings Co., Ltd. (the “Company”) is incorporated
and operates. The translations of Japanese yen amounts into U.S. dollar amounts
are included solely for the convenience of readers outside Japan and have been
made at the rate of ¥98.23 to $1, the approximate rate of exchange at March 31,
2009. Such translations should not be construed as representations that the Japanese
yen amounts could be converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2009
include the accounts of the Company and its 32 significant (29 in 2008) subsidiaries(together, the “Group”).
Under the control or influence concept, those companies in which the Company,
directly or indirectly, is able to exercise control over operations are fully consolidated,
and those companies over which the Group has the ability to exercise significant
influence are accounted for by the equity method.
The remaining non-consolidated subsidiaries, whose combined assets, net sales,
net income and retained earnings in the aggregate are not significant to the consolidated financial statements, have not been consolidated with the Company.
There were no affiliates accounted for by the equity method in 2009 or 2008.
Investments in the remaining non-consolidated subsidiaries and affiliates arestated at cost less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If the equity method of accounting had been applied to the investments in such companies, the effect on theaccompanying consolidated financial statements would not be material.
The excess of the costs over the underlying net equity of investments in consolidated subsidiaries is recognized as goodwill and amortized on a straight-line basis
over a five-year period, with the exception of minor amounts which are charged or
credited to income in the period of acquisition.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profit included in assets resulting from transactions within the Group is eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for theConsolidated Financial Statements—In May 2006, the Accounting Standards
Board of Japan (the “ASBJ”) issued ASBJ Practical Issues Task Force (“PITF”)
No. 18, “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements.” PITF No. 18
prescribes (1) the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events under similar circumstances should in principle be unified for the preparation of the consolidated
financial statements, (2) financial statements prepared by foreign subsidiaries inaccordance with either International Financial Reporting Standards or the generally accepted accounting principles in the United States of America tentatively
may be used for the consolidation process, (3) however, the following items
should be adjusted in the consolidation process so that net income is accounted
for in accordance with Japanese GAAP unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions
that has been directly recorded in the equity; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of thecost model accounting; (e) recording the prior years’ effects of changes inaccounting policies in the income statement where retrospective adjustments tofinancial statements have been incorporated; and (f) exclusion of minority interests from net income, if contained. PITF No. 18 was effective for fiscal years
beginning on or after April 1, 2008 with early adoption permitted.
The Company applied this accounting standard effective April 1, 2008, andadjusted the beginning balance of retained earnings at April 1, 2008 as if thisaccounting standard had been retrospectively applied.
The effect of this change on the consolidated financial statements was not material.

c. Recognition of Operating Revenues—The Group recognizes freight charge
income as operating revenues at the time when freight has been received from theshipping customer for transportation.
The Group also records installment sales receivables, which include principal andfees from customers, after the Group has accepted the relevant contracts which arereferred to the Group by participating member stores. Fees from customers andmember stores were generally recognized in equal installments over the lives of each
respective contract.
d. Cash Equivalents—Cash equivalents are short-term investments that are readily
convertible into cash and that are exposed to insignificant risk of changes in value.
Cash equivalents include time deposits, certificate of deposits and mutual funds
investing in bonds that represent short-term investments, all of which mature or
become due within three months of the date of acquisition.
The difference between cash and time deposits in the accompanying consolidatedbalance sheets and cash and cash equivalents in the accompanying consolidated
statements of cash flows is as follows:
Thousands of
U.S. Dollars

Millions of Yen

CashTime deposits due beyond three months
Bank overdraft included in cash
Cash and cash equivalents

2009¥179,753(5,000)(251)¥174,502

2008¥147,569(5,000)(248)¥142,321

2009$1,829,920(50,901)(2,551)$1,776,468

e. Inventories—Prior to April 1, 2008, inventories were stated at cost, determined by
the first-in, first out method. In July 2006, the ASBJ issued ASBJ Statement No. 9,“Accounting Standard for Measurement of Inventories,” which was effective for fiscal
years beginning on or after April 1, 2008 with early adoption permitted. This standard
requires that inventories held for sale in the ordinary course of business be measured
at the lower of cost or net selling value, which is defined as the selling price lessadditional estimated manufacturing costs and estimated direct selling expenses. The
replacement cost may be used in place of the net selling value, if appropriate.
The Company applied the new accounting standard for measurement of inventories effective April 1, 2008.
The effect of this change on the consolidated financial statements was not material.
f. Marketable and Investment Securities—Marketable and investment securities
are classified and accounted for, depending on management’s intent, as follows: (1)trading securities, which are held for the purpose of earning capital gains in near term
are reported at fair value, and the related unrealized gains and losses are included inearnings, (2) held-to-maturity debt securities, which are expected to be held tomaturity with the positive intent and ability to hold to maturity are reported at amortized cost and (3) available-for-sale securities, which are not classified as either of theaforementioned securities, are reported at fair value, with unrealized gains and losses,
net of applicable taxes, reported in a separate component of equity. The Group has
no trading securities at March 31, 2009 and 2008, respectively.
Non-marketable available-for-sale securities are stated at cost determined by themoving-average method.
For other than temporary declines in fair value, investment securities are reduced
to net realizable value by a charge to income.
g. Property, Plant and Equipment—Property, plant and equipment are stated atcost. Depreciation of property, plant and equipment excluding leased assets of theCompany and its domestic consolidated subsidiaries is computed substantially by
the declining-balance method, while the straight-line method is applied to the buildings acquired after April 1, 1998. Depreciation of leased assets is computed on thestraight-line method over the lease period with no residual value carried. Because ofa revision in the tax law in fiscal year 2009 the Group revised its estimated useful livesof plant from 7–15 years to 12–15 years.
The depreciation of property, plant and equipment of foreign consolidated
subsidiaries is computed on the straight-line method over the estimated useful livesof the assets. The range of useful lives is principally as follows:
Buildings and structures
VehiclesMachinery and equipment

7–60 years
2– 7 years
2–20 years

Maintenance and repairs, including minor renewals and improvements, arecharged to income as incurred.

37

Annual Report 2009

h. Long-lived Assets—The Group reviews its long-lived assets for impairment
whenever events or changes in circumstance indicate the carrying amount of an asset
or asset group may not be recoverable. An impairment loss would be recognized if thecarrying amount of an asset or asset group exceeds the sum of the undiscounted
future cash flows expected to result from the continued use and eventual dispositionof the asset or asset group. The impairment loss would be measured as the amountby which the carrying amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued use and eventual
disposition of the asset or the net selling price at disposition.
i. Other Assets—Amortization of intangible assets is computed on thestraight-line method.
Bond issuance costs are deferred as other assets and amortized on thestraight-line method over a repayment method.
Depreciation of leased assets is computed on the straight-line method over thelease period with no residual value carried.
j. Retirement and Pension Plan—The Company and substantially most domestic
consolidated subsidiaries have a contributory trusteed pension plan and an unfunded
retirement benefit plan. In addition, a defined contribution retirement plan was
introduced for these defined benefit pension plans on December 1, 2006. Certain
domestic consolidated subsidiary participates a cooperative welfare pension fund as
a substitution for the aforementioned contributory trusteed pension plan. The foreignsubsidiaries have respective defined contribution retirement plans.
Directors and corporate auditors are not covered by the retirement and pension
plans described above. Benefits paid to such persons are charged to income as
paid. Any amounts payable to directors and corporate auditors upon retirement are
subject to the approval of the shareholders.
k. Retirement Allowances for Directors and Corporate Auditors—Retirement
allowances for directors and corporate auditors for certain subsidiaries are recorded
to state the liability at the amount that would be required if all directors and corporate
auditors retired at each balance sheet date.
l. Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, “AccountingStandard for Lease Transactions,” which revised the previous accounting standard
for lease transactions issued in June 1993. The revised accounting standard for leasetransactions is effective for fiscal years beginning on or after April 1, 2008 with early
adoption permitted for fiscal years beginning on or after April 1, 2007.
Under the previous accounting standard, finance leases that deem to transfer
ownership of the leased property to the lessee were to be capitalized. However, otherfinance leases were permitted to be accounted for as operating lease transactions if
certain “as if capitalized” information is disclosed in the note to the lessee’s financial
statements. The revised accounting standard requires that all finance lease transactions should be capitalized to recognize lease assets and lease obligations in thebalance sheet.
The Company applied the revised accounting standard effective April 1, 2008.
The effect of this change as lessor was to increase current assets by ¥19,778 million($201,344 thousand) and to decrease property, plant and equipment-at cost by thesame amount.
The effect of this change as lessee was to increase property, plant and equipmentat cost by ¥15,338 million ($156,146 thousand), current liabilities by ¥4,141 million($42,154 thousand) and long-term liabilities by ¥4,878 million ($49,662 thousand).
The effect of this change on the consolidated statements of income was not material.
m. Bonuses to Directors—Bonuses to directors is accrued at the year end to whichsuch bonuses are attributable.
n. Income Taxes—The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income. The asset and liability
approach is used to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts andthe tax bases of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
o. Appropriations of Retained Earnings—Appropriations of retained earnings at
each year end are reflected in the consolidated financial statements for the following
year upon shareholders’ approval.

38

YAMATO HOLDINGS CO., LTD.

p. Foreign Currency Transactions—All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese
yen at the exchange rates at the balance sheet date.
q. Derivative Financial Instruments—Certain consolidated subsidiaries use derivative financial instruments to manage their exposures to fluctuations in interest rates.
Interest rate swaps are utilized by the consolidated subsidiaries to reduce interest
rate risks. The consolidated subsidiaries do not enter into derivatives for trading or
speculative purposes.
Derivative financial instruments and foreign currency transactions are classified
and accounted for as follows: (a) all derivatives are recognized as either assets or
liabilities and measured at fair value, and gains or losses on derivative transactions
are recognized in the statements of income and (b) for derivatives used for hedging
purposes, if derivatives qualify for hedge accounting because of high correlation andeffectiveness between the hedging instruments and the hedged items, gains orlosses on derivatives are deferred until maturity of the hedged transactions.
The interest rate swaps which qualify for hedge accounting and meet specificmatching criteria are not remeasured at market value but the differential paid or
received under the swap agreements are recognized and included in interest
expense or income.
r. Foreign Currency Financial Statements—The balance sheet accounts of theconsolidated foreign subsidiaries are translated into Japanese yen at the current
exchange rate as of the balance sheet date except for equity, which is translated at
the historical rate. Differences arising from such translation were shown as “Foreign
currency translation adjustments” in a separate component of equity.
Revenue and expense accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rates as of the balance
sheet date.
s. Per Share Information—Basic net income per share is computed by dividing net
income available to common shareholders, by the weighted-average number ofcommon shares outstanding for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if
securities were exercised or converted into common stock. Diluted net income pershare of common stock assumes full conversion of the outstanding convertible
notes and bonds at the beginning of the year (or at the time of issuance) with anapplicable adjustment for related interest expense, net of tax, and full exercise ofoutstanding warrants.
Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the respective years including dividends
to be paid after the end of the year.

3. NOTES AND ACCOUNTS RECEIVABLE
Sales recorded on the installment basis were 0.7% and 0.8% of operating revenues
in 2009 and 2008, respectively.
Annual maturities of notes and accounts receivable—installment at March 31,
2009 and related amortization of deferred profit on installment sales are as follows:
Millions of Yen

2010
2011
2012
2013
2014
2015 and thereafter
Total

Thousands of U.S. Dollars

Receivables

DeferredProfit on
Installment
Sales

Receivables

DeferredProfit on
Installment
Sales¥34,452
15,239
7,657
3,134
1,154
426
¥62,062¥ 5,264
3,278
1,812
794
290
118
¥11,556$350,730
155,138
77,94931,89911,752
4,332$631,800$ 53,586
33,371
18,441
8,083
2,956
1,206
$117,643

4. INVENTORIES

6. LONG-LIVED ASSETSInventories at March 31, 2009 and 2008 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2009
¥ 855
325
1,208
¥2,388MerchandiseWork in process
Raw materials and supplies
Total

2008
¥ 693
520
1,085
¥2,2982009$ 8,701
3,313
12,298$24,312The Group reviewed its long-lived assets for impairment as of the years ended March
31, 2009. As a result, the Group recognized an impairment loss of ¥974 million($9,920 thousand) as other expense for the asset groups of the Chitose Regional
Branch of Yamato Transport Co., Ltd. and another five regional branches for the year
ended March 31, 2009 due to continuous operating losses of those units. The
carrying amounts of the relevant asset groups were written down to the recoverable
amounts. In the case where net selling prices were used as recoverable amounts,
relevant buildings were evaluated based on assessed value of fixed assets, andrelevant land was evaluated based on posted land price. No impairment loss wasrecognized for the year ended March 31, 2008.

5. MARKETABLE AND INVESTMENT SECURITIES

7. BANK LOANS AND LONG-TERM DEBT

Marketable and investment securities as of March 31, 2009 and 2008 consisted of
the following:

Short-term bank loans at March 31, 2009 and 2008 consisted of notes to banks andbank overdrafts. The annual interest rates applicable to the bank loans ranged from0.650% to 8.50% and 1.020% to 4.750% at March 31, 2009 and 2008, respectively.
Long-term debt at March 31, 2009 and 2008 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2009
Non-current:
Marketable equity securities
Non-marketable equity securities
Other
Total

2008

2009

¥16,944
1,870
116¥18,930¥28,475
3,015
10,236¥41,726$172,492
19,034
1,183$192,709

Information regarding each category of the securities classified as available-for-saleand held-to-maturity at March 31, 2009 and 2008 was as follows:
Millions of Yen

2009

Securities classified as:
Available-for-sale:
Equity securities

Thousands of
U.S. Dollars

Millions of Yen

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥15,068¥2,560¥684¥16,9440.650% to 2.100% loans froma Japanese bank due 2009 to 2013
Lease obligations due in November 2015
Unsecured 1.59% bonds due inNovember 2010
Unsecured 1.2% convertible debentures,convertible into common stock at¥1,211.80 per share, due in
September 2009
Total
Less current portion
Total

2009

2008

2009

¥ 65,895
9,019¥ 75,903$ 670,823
91,816

5,000

5,000

50,901

13,063
92,977(32,889)¥ 60,088

13,07093,973(22,008)¥ 71,965

132,984
946,524(334,814)$ 611,710

Annual maturities of long-term debt at March 31, 2009 were as follows:

Millions of Yen

2008

Securities classified as:
Available-for-sale:
Equity securities
Other

Year Ending March 31

Cost

Unrealized
Gains

Unrealized
Losses¥20,126
10,025¥8,93295¥582

Fair Value¥28,476
10,120Thousands of U.S. Dollars

2010
2011
2012
2013
2014
2015 and thereafter
Total

Millions of Yen

Thousands of
U.S. Dollars¥45,952
14,296
13,56818,995154
12¥92,977$467,798
145,532
138,125
193,379
1,569
121$946,524

2009

Securities classified as:
Available-for-sale:
Equity securities

Cost

Unrealized
Gains

Unrealized
LossesFair Value

Convertible debentures of the Company at March 31, 2009, were convertible into
10,780 thousand shares of common stock of the Company. The conversion prices
are subject to adjustments to reflect stock splits and certain other events.

$153,396$26,059$6,963$172,492

8. RETIREMENT AND PENSION PLANS

The majority of available-for-sale securities whose fair value is not readily
determinable as of March 31, 2009 and 2008 were as follows:
Carrying AmountMillions of Yen

Available-for-sale:
Equity securities

Thousands of
U.S. Dollars

2009

2008

2009

¥1,870¥3,015$19,034

The Group has severance payment plans for employees.
Under most circumstances, employees terminating their employment areentitled to retirement benefits determined based on the rate of government bonds,
years of service and certain other factors. Such retirement benefits are made in theform of a lump-sum severance payment from the Company or from the consolidated
subsidiaries and annuity payments from a trustee. Employees are entitled to larger
payments if the termination is involuntary, by retirement at the mandatory retirementage, by death, or by voluntary retirement at certain specific ages prior to the
mandatory retirement age. The retirement benefits for directors and corporate
auditors are not included in aforementioned plans, which are paid subject to theapproval of the shareholders.

Proceeds from the sales of available-for-sale securities for the years ended March
31, 2009 and 2008 were ¥10,158 million ($103,414 thousand) and ¥4,231 million,
respectively. Gross realized gains on these sales, computed on the moving average
cost basis, were ¥128 million ($1,305 thousand) and ¥1,216 million for the years
ended March 31, 2009 and 2008, respectively.

39

Annual Report 2009

The liability for employees’ retirement benefits at March 31, 2009 and 2008
consisted of the following:
Millions of Yen

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial (loss) gain
Prepaid pension cost
Net liability

2009¥ 82,691(48,520)(5,982)208¥ 28,397

2008¥ 81,422(56,988)
2,728
53¥ 27,215

Thousands of
U.S. Dollars

2009$ 841,806(493,941)(60,900)
2,121$ 289,086

The components of net periodic benefit costs for the years ended March 31,
2009 and 2008 are as follows:
Millions of Yen

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Net periodic benefit costs

2009¥ 4,718
1,615(1,127)795¥ 6,0012008¥ 4,567
1,562(1,199)
1,691¥ 6,621

2009
2.0%
2.0%
1 year
5 years2009$ 48,031
16,445(11,478)
8,097$ 61,095

2008
2.0%
2.0%
1 year
5 years

9. EQUITY
On and after May 1, 2006, Japanese companies have been subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the Companies
Act that affect financial and accounting matters are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal
year in addition to the year-end dividend upon resolution at the shareholders meeting.
For companies that meet certain criteria such as; (1) having the Board of Directors,(2) having independent auditors, (3) having the Board of Corporate Auditors, and (4)the term of service of the directors is prescribed as one year rather than two years ofnormal term by its articles of incorporation, the Board of Directors may declare
dividends (except for dividends in kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. The Company meets all theabove criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash
assets) to shareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by
the Board of Directors if the articles of incorporation of the company so stipulate. The
Companies Act provides certain limitations on the amounts available for dividends or
the purchase of treasury stock. The limitation is defined as the amount available for
distribution to the shareholders, but the amount of net assets after dividends must be
maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be
appropriated as a legal reserve (a component of retained earnings) or as additional
paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the total of aggregate amount oflegal reserve and additional paid-in capital equals 25% of the common stock. Under
the Companies Act, the total amount of additional paid-in capital and legal reserve
may be reversed without limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain conditions upon
resolution of the shareholders.

40

YAMATO HOLDINGS CO., LTD.

10. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national andlocal income taxes which, in the aggregate, resulted in a normal effective statutory
tax rate of approximately 40% for the years ended March 31, 2009 and 2008.
The tax effects of significant temporary differences which resulted in deferred tax
assets and liabilities at March 31, 2009 and 2008 were as follows:

Thousands of
U.S. Dollars

Assumptions used for the years ended March 31, 2009 and 2008 are set forth
as follows:

Discount rate
Expected rate of return on plan assets
Amortization period of prior service cost
Recognition period of actuarial gain/loss

c. Treasury Stock
The Companies Act also provides for companies to purchase treasury stock anddispose of such treasury stock by resolution of the Board of Directors. The amount oftreasury stock purchased cannot exceed the amount available for distribution to theshareholders which is determined by specific formula. The Companies Act also
provides that companies can purchase both treasury stock acquisition rights andtreasury stock. Such treasury stock acquisition rights are presented as a separate
component of equity.

Thousands of
U.S. Dollars

Millions of Yen

Deferred tax assets:
Current:
Accrued expenses
Enterprise tax
Allowance for doubtful accounts
Legal welfare expense
Other
Deferred tax assets—current
Non-current:
Liability for employees’
retirement benefits
Investment securities
Investment in and advances tonon-consolidated subsidiaries
and affiliates
Loss on devaluation of land
Loss on impairment oflong-lived assets
Loss on devaluation of telephone
subscription rights
Unrealized profit
Other
Less valuation allowance
Deferred tax assets—non-current
Deferred tax liabilities:
Current—other
Deferred tax liabilities—current
Non-current:
Unrealized gain on available-for-salesecurities
Other
Deferred tax liabilities—non-current
Deferred tax assets—net

2009

2008

2009

¥ 10,703
1,691
1,643
1,453
2,667
¥ 18,157¥ 10,878
1,964
1,417
1,460
2,109
¥ 17,828$ 108,959
17,216
16,724
14,78827,154$ 184,841¥ 11,278
3,734¥ 10,833
3,541$ 114,813
38,00929
27,181

265
27,181

297
276,712

3,663

3,265

37,287

615
898
3,486
(34,677)¥ 16,207

600
760
2,167
(34,079)¥ 14,533

6,261
9,139
35,489(353,014)$ 164,993

¥
¥

¥
¥

142
142

$
$

¥ 2,741596¥ 3,337¥ 28,882

$

¥

140
140

532
789
¥ 1,321¥ 32,903

1,425
1,425

5,421
8,033
$ 13,454$ 334,955

A reconciliation between the normal effective statutory tax rates and the actual
effective tax rates reflected in the accompanying consolidated statements of income
for the years ended March 31, 2009 and 2008 were as follows:
2009
40.0%
5.5
1.2
1.0
47.7%

Normal effective statutory tax rate
Per capita levy of local taxes
Valuation allowance
Other—net
Actual effective tax rate

2008
40.0%
3.7
2.8
0.0
46.5%

11. LEASES(1) Lessee
The Group leases certain machinery, computer equipment and other assets.
Pro forma information for the year ended March 31, 2008 of leased assets
such as acquisition cost, accumulated depreciation, and obligations under financeleases that do not transfer ownership of the leased assets to the lessee on an “as if
capitalized” basis was as follows:

2008

¥102
55
¥ 47

Acquisition cost
Accumulated depreciation
Net leased property

Year ending March 31

Millions ofYen

Thousands of
U.S. Dollars

2010
2011
2012
2013
2014
2015 and thereafterTotal¥ 7,385
6,020
4,766
2,819
678
6
¥21,674$ 75,186
61,28048,524
28,6956,898
64$220,647

The minimum rental commitments under noncancellable operating leases at
March 31, 2009 was as follows :Due within one year
Due after one year
Total

Millions of Yen

Buildings
andStructures

Maturities of lease receivables for finance leases that deem to transfer ownershipof the leased property to the lessee are as follows:

VehiclesMachinery andEquipment

Other
Assets

Total

¥647
287
¥360

¥20,221
10,083¥10,138

¥471
243
¥228

¥21,441
10,668¥10,773

Obligations under finance leases which included the imputed interest expense
portion, and noncancelable operating leases as of March 31, 2008 was as follows:

Millions ofYen

Thousands of
U.S. Dollars

2009
¥ 74
275
¥349

2009
$ 755
2,796
$3,551

12. CONTINGENT LIABILITIESContingent liabilities for guarantees and items of a similar nature at March 31,
2009 amounted to ¥76 million ($769 thousand) as guarantees of loans of anon-consolidated subsidiary.

13. NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share(“EPS”) for the year ended March 31, 2009 and 2008 is as follows:

Millions of Yen

2008

Due within one year
Due after one year
Total

Finance
Lease

OperatingLease¥ 4,152
6,621¥10,773

¥485
80
¥565

The minimum rental commitments under noncancellable operating leases at
March 31, 2009 was as follows :Due within one year
Due after one year
Total

Millions ofYen

Thousands of
U.S. Dollars

2009
¥135
63
¥198

2009
$1,372648$2,020(2) Lessor
The net investement in lease as of March 31, 2009 are summarized as follows:

Gross lease receivables
Unguaranteed residual values
Unearned interest income
Investments in lease, current

Millions ofYen

Thousands of
U.S. Dollars

2009¥21,674
1,926(3,822)¥19,7782009$220,647
19,602(38,905)$201,344

Year ended March 31, 2009

Basic EPS—Net income available
to common shareholders
Effect of dilutive securities—
Convertible bonds
Diluted EPS—Net income forcomputation

Millionsof YenThousandsof Shares

Net Income

Weightedaverage
Shares¥25,523

443,140

99

10,782¥25,622

Yen

U.S. Dollars

EPS¥57.60$0.59

453,922¥56.45$0.57¥35,353443,023¥79.8098

10,788¥35,451

453,811

Year ended March 31, 2008

Basic EPS—Net income available
to common shareholders
Effect of dilutive securities—
Convertible bonds
Diluted EPS—Net income forcomputation¥78.12

41

Annual Report 2009

14. SEGMENT INFORMATION
Information about industry segments, geographic segments and operating revenues to foreign customers of the Company and consolidated subsidiaries for the years ended March
31, 2009 and 2008 is as follows:(1) Industry Segments
Millions of Yen

2009
Delivery

BIZ-Logistics

Home
Convenience

e-Business

Financial

Truck
Maintenance

Other

a. Operating revenues andoperating income:Operating revenues to customers
Intersegment operating revenues
Total operating revenues
Operating costs and expenses
Operating income (loss)

Eliminations or
Corporate¥ 997,898
42,4781,040,376
1,009,253¥ 31,123¥ 92,947
11,627
104,574
101,379¥ 3,195¥53,315
16,11569,43069,770¥ (340)¥32,273
20,07652,34946,290¥ 6,059¥ 53,608
3,772
57,38046,874¥ 10,506¥17,555
25,17142,72641,015¥ 1,711¥ 4,326
50,40654,732
31,829¥22,903¥(169,645)(169,645)(150,209)¥ (19,436)

1,251,922
1,196,201¥ 55,721

b. Assets, depreciation andcapital expenditures:
AssetsDepreciation
Capital expenditures¥ 526,645
34,95033,923¥ 45,808
1,479
2,153

¥24,492
1,212
627¥28,159
2,493
3,824

¥186,378
784
1,912¥16,123
692
3,099¥10,491
1,062
292¥ 31,510
25
26¥ 869,606
42,69745,856

Consolidated

Consolidated¥1,251,922

Thousands of U.S. Dollars

2009
BIZ-Logistics

Home
Convenience

e-Business

Financial

Truck
Maintenance

Other

Eliminations or
Corporatea. Operating revenues andoperating income:Operating revenues to customers $10,158,794
Intersegment operating revenues
432,432
Total operating revenues
10,591,226
Operating costs and expenses
10,274,387
Operating income (loss)$ 316,839$ 946,221
118,358
1,064,579
1,032,053$ 32,526$542,761
164,054
706,815710,274$ (3,459)$328,543
204,377
532,920471,238$ 61,682$ 545,733
38,402584,135
477,180$ 106,955$178,709
256,247
434,956
417,535$ 17,421$ 44,041
513,144557,185
324,034$233,151$(1,727,014)(1,727,014)(1,529,149)$ (197,865)

b. Assets, depreciation andcapital expenditures:
AssetsDepreciation
Capital expenditures$ 466,339
15,052
21,920$249,338
12,335
6,383$286,659
25,381
38,928$1,897,360
7,985
19,466$164,133
7,048
31,550$106,797
10,811
2,965

Delivery$ 5,361,342
355,795
345,344$12,744,802$

320,782
256
265

12,744,802
12,177,552$ 567,250$ 8,852,750
434,663
466,821

Millions of Yen

2008
Delivery

BIZ-Logistics

Home
Convenience

e-Business

Financial

Truck
Maintenance

Other

Eliminations or
Corporatea. Operating revenues andoperating income:Operating revenues to customers
Intersegment operating revenues
Total operating revenues
Operating costs and expenses
Operating income¥ 981,142
38,2391,019,381
979,509¥ 39,872¥ 95,693
12,530108,223
103,075¥ 5,148¥48,938
15,19964,13763,480¥ 657¥32,795
18,49751,29245,064¥ 6,228¥ 51,458
6,900
58,35847,433¥ 10,925¥11,396
22,95134,34732,289¥ 2,058¥ 4,552
56,741
61,29331,141¥30,152¥(171,057)(171,057)(144,197)¥ (26,860)

1,225,974
1,157,794¥ 68,180b. Assets, depreciation andcapital expenditures:
AssetsDepreciation
Capital expenditures¥ 525,683
31,149106,991¥ 49,613
1,056
1,437

¥24,940878
375¥25,709969
606¥193,469
9,852
13,503¥14,375
459
1,629¥ 8,780379
283¥ 31,650
308¥ 874,219
44,772
124,832

Consolidated¥1,225,974

Notes: Delivery:
Small-parcel delivery services such as Takkyubin (door-to-door parcel delivery) and Kuroneko Mail
BIZ-Logistics:
Intercompany logistics services, aimed at the B2B supply-chain management market
Home Convenience: Lifestyle support services intimately connected with the needs of local markets, such as moving and household effects delivery services
e-Business:
Information services targeted at the business market, including ASP services and the development of information systems
Financial:
Financial services targeted at business customers and consumers, such as settlement and collection
Truck Maintenance: Vehicle maintenance services and fuel supply targeted at transport companies
Other:
Group support services, shared services centering on arterial transport and staffing services
As discussed in Note 2.l, effective April 1, 2008, the Company and its domestic subsidiaries applied “Accounting Standard for Lease Transactions” and “Application plan of
Accounting Standard for Lease Transaction.” The effect of this change was to increase assets of Delivery by ¥4,579 million ($46,094 thousand) and of e-Business by ¥3,738
million ($38,056 thousand) for the year ended March 31, 2009. The effect for the other industries segments was not material.

42

YAMATO HOLDINGS CO., LTD.

(2) Geographic Segments
The geographic segments of the Company and consolidated subsidiaries for the years ended March 31, 2009 and 2008 are summarized as follows:
Millions of Yen

2009

Operating revenues:
Outside customers
Interarea
Total operating revenues
Operating costs and expenses
Operating income
AssetsJapan

U.S.A.

EuropeAsia¥1,232,517
4,794
1,237,311
1,181,772¥ 55,539¥ 789,878¥10,672
3,848
14,52014,131¥ 389¥ 2,613¥2,745
1,747
4,492
4,489
¥
3
¥1,409¥5,988
3,361
9,349
9,269
¥ 80
¥3,000Eliminations or
Corporate

Consolidated¥1,251,922¥(13,750)(13,750)(13,460)¥ (290)¥ 72,706

1,251,922
1,196,201¥ 55,721¥ 869,606

Consolidated

Thousands of U.S. Dollars

2009

Operating revenues:
Outside customers
Interarea
Total operating revenues
Operating costs and expenses
Operating income
AssetsJapan

U.S.A.

EuropeAsia

Eliminations or
Corporate$12,547,260
48,794
12,596,054
12,030,654$ 565,400$ 8,041,109$108,644
39,171
147,815
143,852$ 3,963$ 26,599$27,942
17,79045,73245,707$25$14,340$60,956
34,22095,176
94,361$ 815$30,541$(139,975)(139,975)(137,022)$ (2,953)$ 740,161

12,744,802
12,177,552$ 567,250$ 8,852,750

Eliminations or
Corporate

Consolidated$12,744,802

Millions of Yen

2008

Operating revenues:
Outside customers
Interarea
Total operating revenues
Operating costs and expenses
Operating income
AssetsJapan

U.S.A.

EuropeAsia¥1,201,726
5,821
1,207,547
1,139,607¥ 67,940¥ 803,258¥12,205
3,727
15,932
15,482¥ 450¥ 3,085¥4,051
1,930
5,981
5,922
¥ 59
¥1,992¥7,992
4,463
12,455
12,094¥ 361¥5,115¥1,225,974¥(15,941)(15,941)(15,311)¥ (630)¥ 60,769

1,225,974
1,157,794¥ 68,180¥ 874,219

Operating revenues and assets are summarized by geographic area based on the countries where subsidiaries are located.
(3) Operating Revenues to Foreign Customers
Operating revenues to foreign customers for the years ended March 31, 2009 and 2008 amounted to ¥21,042 million ($214,208 thousand) and ¥26,123 million, respectively.

15. SUBSEQUENT EVENTSAppropriations of Retained Earnings
The following appropriations of retained earnings at March 31, 2009 were approved at the Company’s board of directors meeting held on May 14, 2009:

Year-end cash dividends, ¥11.00 ($0.11) per share

Millions of Yen

Thousands of
U.S. Dollars¥4,874$49,618

43

Annual Report 2009

Independent Auditors’ Report

To the Board of Directors of
Yamato Holdings Co., Ltd.:We have audited the accompanying consolidated balance sheets of Yamato Holdings Co., Ltd. (the “Company”) and consolidated subsidiaries as of March 31, 2009 and 2008, and the related consolidated statements of income, changes in equity, and cash flows for theyears then ended, all expressed in Japanese yen. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial
position of Yamato Holdings Co., Ltd. and consolidated subsidiaries as of March 31, 2009 and 2008, and the consolidated results of theiroperations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.
Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers
outside Japan.

June 15, 200944

YAMATO HOLDINGS CO., LTD.

Profile

Corporate Data
(As of March 31, 2009)

The Yamato Group consists of Yamato Holdings Co., Ltd. (“the Company”), 44 subsidiaries andfour affiliated companies. It is primarily involved in seven business segments: Delivery, BIZLogistics, Home Convenience, e-Business, Financial, Truck Maintenance and Other, as well as
services incidental to these activities.
The goal of the Yamato Group is to help bring about a better society by further refining theHead OfficePrincipal Shareholders
Percentage of total
shares outstanding

Yamato Holdings Co., Ltd.
16-10, Ginza 2-chome, Chuo-ku, Tokyo
104-8125, Japan
Telephone: (03) 3541-4141
Facsimile: (03) 5565-3427

The Master Trust Bank of Japan, Ltd. (Trust Account)

7.05%

Japan Trustee Services Bank, Ltd. (Trust Account)

6.79%

Japan Trustee Services Bank, Ltd. (Trust Account 4G)

5.53%

Mizuho Bank, Ltd.

3.77%

Common Stock

Yamato Employees’ Shareholding Association

3.48%

State Street Bank and Trust Company 505223

2.69%

has managed its businesses in pursuit of this goal, toward which it will continue to strive. To thisAuthorized: 1,787,541,000 shares
Issued: 457,315,176 shares

Nippon Life Insurance Company

2.68%

end, the Group is working to maximize corporate value through improving quality by constantly

Stock Exchange Listing

Meiji Yasuda Life Insurance Company

2.68%

Tokyo Stock Exchange

Yamato Trading-Partner Shareholding Association

2.32%

Sumitomo Life Insurance Company

1.85%

Total

38.87%

Takkyubin network, which is a part of the social infrastructure, creating services that facilitate
more convenient, comfortable lifestyles, and developing innovative logistics systems. The Groupputting ourselves in our customers’ position, while also using the capabilities of the whole Groupto develop unique services that further improve convenience for our customers.

Transfer Agent and Registrar
Mizuho Trust & Banking Co., Ltd.

Annual Meeting
The annual meeting of shareholders is normally held in Junein Tokyo, Japan.

Auditors

Contents

Deloitte Touche Tohmatsu(by Tohmatsu & Co., the Japanese member of Deloitte
Touche Tohmatsu)

1 To Our Shareholders
2 Six-Year Consolidated Financial Summary
3 Message from the Management
8 At a Glance

Stock Price Range (Tokyo Stock Exchange)
(Yen)

(Yen)

2,500

18,00010 Overview of Operations
17 Organization

16,0002,000

18 Corporate Social Responsibility

14,00020 Corporate Governance
22 Directors and Auditors

1,500

12,00023 Financial Section
45 Corporate Data

10,000
1,000
8,000

500
Forward-Looking Statements
This annual report contains forward-looking statements concerning Yamato Holdings’ future plans, strategies and performance. These statements represent assumptions and beliefs based on information currently available and are not historical facts. Furthermore, forward-looking statements are subject to a number of risks anduncertainties that include, but are not limited to, economic conditions, customer demand, foreign currency exchange rates, tax laws and other regulations.
Yamato Holdings therefore cautions readers that actual results may differ materially from these predictions.

06/4

7

10

07/1

4

■ Stock Price Range (left scale)7

10— Average (left scale)

08/1

4

7

10

09/1

6,000

Nikkei Stock Average (right scale)

45

Annual Report 2009

YAMATO HOLDINGS CO., LTD.

Annual Report 2009

Creating
ALWAYS

Satisfaction

INNOVATING

Annual Report 2009
Year ended March 31, 2009
Printed in Japan on recycled paper