Notes to Consolidated
Financial Statements
Years Ended March 31, 2003 and 2002

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL
STATEMENTS
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in the Japanese
Securities and Exchange Law and its related accounting regulations,and in conformity with accounting principles and practices generally
accepted in Japan, which are different in certain respects as toapplication and disclosure requirements of International Financial
Reporting Standards. The consolidated financial statements are notintended to present the financial position, results of operations andcash flows in accordance with accounting principles and practices
generally accepted in countries and jurisdictions other than Japan.
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 to readers outside Japan.
The consolidated financial statements are stated in Japanese yen,
the currency of the country in which Yamato Transport Co., Ltd.
(the “Company”) is incorporated and operates. The translations ofJapanese 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 ¥120.20 to $1, the approximate rate of exchange at March
31, 2003. 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.
Certain reclassifications and rearrangements have been made in
the 2002 financial statements to conform to classifications andpresentations used in 2003.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements include theaccounts of the Company and its 27 significant subsidiaries (together,
the “Group”).
Under the control or influence concept, those companies inwhich the Parent, 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 areaccounted 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 notbeen consolidated with the Company.
Investments in 3 affiliates are accounted for by the equity method.
Investments in the remaining non-consolidated subsidiaries andaffiliates are stated at cost less a valuation allowance representing
possible losses on the investments that is deemed to be other than
temporary. If the equity method of accounting had been applied tothe investments in such companies, the effect on the accompanying
consolidated financial statements would not be material.
The excess of the costs over the underlying net equity ofinvestments in consolidated subsidiaries is allocated to identifiable
assets, and the remaining amount is recognized as goodwill andamortized on a straight-line basis over a five-year period, with the
exception of minor amounts which are charged or credited to incomein the period of acquisition.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in
assets resulting from transactions within the Group is eliminated.
b. Recognition of Operating Revenues—The Group recognizes freightcharge income as operating revenues at the time when freight has
been received from the shipping customer for transportation.
c. Cash Equivalents—Cash equivalents are short-term investmentsthat are readily convertible into cash and that are exposed toinsignificant risk of changes in value. Cash equivalents include time
deposits, certificate of deposits and mutual funds investing in bondsthat 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 consolidated balance sheets and cash and cash equivalents inthe accompanying consolidated statements of cash flows is asfollows:
Thousands of
U.S. Dollars

Millions of Yen

2003

2002

2003

Cash
¥132,320 ¥152,863
Time deposits
241
2,763
Total
132,561
155,626
Time deposits due beyond
three months(323)
Bank overdraft included in cash
(168)
Cash and cash equivalents¥132,393 ¥155,303$1,100,833
2,003
1,102,836(1,395)$1,101,441

d. Inventories—Inventories which mainly consist of supplies arestated at cost as determined by the first-in, first-out method.
e. 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 fairvalue, and the related unrealized gains and losses are included in theearnings, (2) held-to-maturity debt securities, which are expected tobe held to maturity with the positive intent and ability to hold tomaturity are reported at amortized cost and (3) available-for-salesecurities, which are not classified as either of the aforementioned
securities, are reported at fair value, with unrealized gains andlosses, net of applicable taxes, reported in a separate component ofshareholders’ equity. The Group has no such trading securities.
Non-marketable available-for-sale securities are stated at cost
determined by the moving-average method.
For other than temporary declines in fair value, investment
securities are reduced to net realizable value by a charge to income.
f. Property, Plant and Equipment—Property, plant and equipment arestated at cost. Depreciation of property, plant and equipment of theCompany and its consolidated domestic subsidiaries is computed by
the declining-balance method at rates based on the estimated useful
lives of the assets, while the straight-line method is applied to thebuildings acquired after April 1, 1998, and to the equipment used forrefrigerated delivery service. The depreciation of property, plant andequipment of foreign consolidated subsidiaries is computed on thestraight-line method over the estimated useful lives of 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 are charged to income as incurred.
g. Other Assets—Amortization of intangible assets is computed on thestraight-line method over the period specified by the JapaneseCommercial Code (the “Code”).
Bond discounts are deferred as other assets and amortized on
the straight-line method over the lives of the bonds.
Bond issuance costs are deferred as other assets and amortizedon the straight-line method over a three-year period.
h. Retirement and Pension Plan—The Company and certain consolidated subsidiaries have a contributory trusteed pension plan and an
unfunded retirement benefits plan which cover 35% and 65%,
respectively, of retirement benefits. One consolidated subsidiary has
a non-contributory trusteed pension plan to cover the retirement
benefits for employees who retire at 55 years or more with at least 10
years of service. The foreign subsidiaries also have a defined
contribution retirement plan which covers employees who haveworked over 1 year, subject to certain limitations. Other consolidated
subsidiaries have an unfunded retirement benefits plan.

YAMATO TRANSPOR T Ann ual Report 2003

32,33

The contributory funded defined benefit pension plan, which isestablished under the Japanese Welfare Pension Insurance Law,covers a substitutional portion of the governmental pension program
managed by the Company on behalf of the government and acorporate portion established at the discretion of the Company.
According to the enactment of the Defined Benefit Pension Plan Law
in April 2002, the Company applied for an exemption from obligation
to pay benefits for future employee services related to the substitutional portion which would result in the transfer of the pension
obligations and related assets to the government by anothersubsequent application. The Company obtained an approval of
exemption from future obligation by the Ministry of Health, Labourand Welfare on December 16, 2002.
As a result of this exemption, the Company and certain subsidiaries recognized a gain on exemption from future pension obligationof the governmental program in the amount of ¥45,703 million inaccordance with a transitional measurement of the accounting
standard for employees’ retirement benefits for the year ended
March 31, 2003.
The substitutional portion of the plan assets which will betransferred to the government in the subsequent year is measured tobe approximately ¥111,902 million ($930,967 thousand) as at March
31, 2003.
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 todirectors and corporate auditors upon retirement are subject toapproval of the shareholders.

n. Per Share Information—Basic net income per share is computed by
dividing net income available to common shareholders, by theweighted-average number of common shares outstanding for theperiod, 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 per share of common stock assumes fullconversion of the outstanding convertible notes and bonds at the
beginning of the year (or at the time of issuance) with an applicableadjustment for related interest expense, net of tax, and full exerciseof outstanding 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.

i. Leases—All leases are accounted for as operating leases. Under
Japanese accounting standards for leases, finance leases that deemto transfer ownership of the leased property to the lessee are to becapitalized, while other finance leases are permitted to be accounted
for as operating lease transactions if certain “as if capitalized” information is disclosed in the notes to the lessee’s financial statements.

Non-current:
Marketable equity securities
Non-marketable equity
securities
Government and corporate
bonds
Other
Total

j. Income Taxes—The provision for income taxes is computed basedon the pretax income included in the consolidated statements ofincome. 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 and the tax
bases of assets and liabilities. Deferred taxes are measured byapplying currently enacted tax laws to the temporary differences.

3. MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2003 and 2002
consisted of the following:

Current:
Government and corporate
bonds
Other
Total

2003

2002

2003

¥ 6,011501¥ 6,512¥ 2,531
3,803¥ 6,334$ 50,005
4,169$ 54,174¥ 7,409¥10,219$ 61,637

1,560

676

12,9804,704
5,730¥19,403

6,212
1,162
¥18,269

39,13147,673$161,421

Information regarding each category of the securities classified
as available-for-sale and held-to-maturity at March 31, 2003 and 2002
was as follows:
Millions of Yen

2003

k. 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.
l. Foreign Currency Transactions—All short-term and long-termmonetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the balance
sheet date.

Thousands of
U.S. Dollars

Millions of Yen

Cost

Securities classified as:
Available-for-sale—equity securities
Held-to-maturity

¥

6,988
15,819Unrealized
Gains

Unrealized
Losses

¥

¥ 403
5

824
3

Fair
Value

¥

7,409
15,817

Millions of Yen

m. Foreign Currency Financial Statements—The balance sheet accountsof the consolidated foreign subsidiaries are translated into Japanese
yen at the current exchange rate as of the balance sheet date except
for shareholders’ equity, which is translated at the historical rate.
Differences arising from such translation were shown as “Foreign
currency translation adjustments” in a separate component ofshareholders’ equity.
Revenue and expense accounts of the consolidated foreignsubsidiaries are translated into Japanese yen at the current exchange
rates as of the balance sheet date.

2002

Securities classified as:
Available-for-sale—equity securities
Held-to-maturity

¥

Cost

Unrealized
Gains

Unrealized
Losses

8,700
12,546¥ 1,733
14

¥

214
8

Fair
Value

¥ 10,219
12,552Thousands of U.S. Dollars

2003

Securities classified as:
Available-for-sale—equity securities
Held-to-maturity

Cost

Unrealized
Gains

Unrealized
LossesFair
Value$ 58,134
131,607$6,85624$3,35346$ 61,637
131,585

The majority of available-for-sale securities whose fair value is
not readily determinable as of March 31, 2003 and 2002 was asfollows:
Carrying AmountMillions of Yen

Available-for-sale:
Equity securities
Preferred shares

Thousands of
U.S. Dollars

2003

2002

2003

¥1,560
1,000

¥ 676
1,000

$12,980
8,319

Proceeds from sales of available-for-sale securities for the years
ended March 31, 2003 and 2002 were ¥9 million ($72 thousand) and¥369 million, respectively. Gross realized gains and losses on thesesales, computed on the moving average cost basis, were ¥1 million($7 thousand) and ¥0 million ($0 thousand), respectively, for the year
ended March 31, 2002 and ¥1 million and ¥72 million, respectively, forthe year ended March 31, 2002.
The carrying values of debt securities by contractual maturities
for securities classified as held-to-maturity at March 31, 2003 wereas follows:
Millions of Yen

Thousands of
U.S. Dollars

Held to Maturity

Held to Maturity¥ 6,5129,307¥15,819$ 54,174
77,433$131,607

Due in one year or lessDue after one year through five years
Total

4. BANK LOANS AND LONG-TERM DEBT
Short-term bank loans at March 31, 2003 and 2002 consisted of notes to banks and bank overdrafts. The annual interest rates applicable to thebank loans ranged from 0.05% to 6% and 0.4% to 1.375% at March 31, 2003 and 2002, respectively.
Long-term debt at March 31, 2003 and 2002 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

1.49% to 3.2% loans from Japanese banks, and other financial institutions due 2009
Secured 3.0% bonds due in August 2002
Unsecured 2.2% bonds due in November 2002
Unsecured 2.6% bonds due in July 2004
Unsecured 1.975% bonds due in July 2005
Unsecured 1.65% bonds due in December 2005
Unsecured 0.8% bonds due in December 2004
Unsecured 1.7% convertible debentures, convertible into common stock at¥1,071.80 per share, due in September 2002
Unsecured 1.2% convertible debentures, convertible into common stock at¥1,211.80 per share, due in September 2009
Total
Less current portion
Total
Based on debt assumption agreements with financial institutions,the Company has transferred the debt repayment obligation for certain
bonds to such financial institutions and provided such financial
institutions with cash for the payment of principal and interest on
these bonds. As a result of such transactions, the balance of suchbonds derecognized amounted to ¥25,000 million ($207,987 thousand)as of March 31, 2003 (see Note 9).
Annual maturities of long-term debt at March 31, 2003 wereas follows:Year Ending March 31

2005
2010
Total

Millions of Yen

Thousands of
U.S. Dollars¥17,000
13,425¥30,425$141,431
111,689$253,120

Investment securities with a carrying amount of ¥21 million ($178
thousand) were deposited as security for dealings at March 31, 2003.
All outstanding convertible debentures of the Company at March
31, 2003, were convertible into 11 thousand shares of common stockof the Company. The conversion prices are subject to adjustments toreflect stock splits and certain other events.

2003

2002

2003

¥15,000¥ 10,305200
15,00015,00010,00015,0002,000$124,792

2,000

16,6398,516
13,42530,425

13,42589,446(27,522)¥ 61,924¥30,425

111,689
253,120$253,120

5. RETIREMENT AND PENSION PLANS
The Company and its consolidated subsidiaries have severance
payment plans for employees.
Under most circumstances, employees terminating theiremployment are entitled to retirement benefits determined based on
the rate of pay at the time of termination, years of service andcertain other factors. Such retirement benefits are made in the formof a lump-sum severance payment from the Company or from theconsolidated subsidiaries and annuity payments from a trustee.
Employees are entitled to larger payments if the termination is
involuntary, by retirement at the mandatory retirement age, 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 paid subject to the approval of the shareholders.
The liability for employees’ retirement benefits at March 31, 2003
and 2002 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2003
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Net liability

2002

2003

¥126,763 ¥ 285,399(28,457) (149,414)(50,582)(63,130)¥ 47,724 ¥ 72,855

YAMATO TRANSPOR T Ann ual Report 2003

$1,054,599(236,746)(420,818)$ 397,035

34,35

The components of net periodic benefit costs for the years ended
March 31, 2003 and 2002 are as follows:
Millions of Yen

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Net periodic benefit costs
Amortization of prior service
cost
Gain on exemption from future
pension obligation of thegovernmental program
Total benefit costs—net

Thousands of
U.S. Dollars

2003

2002

2003

¥ 11,336
6,316¥11,120
7,887(3,641)
11,62526,991$ 94,314
52,547

15,33732,989127,593
274,454(5,222)(45,703)¥(12,714)¥21,769

7. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanesenational and local income taxes which, in the aggregate, resulted in anormal effective statutory tax rate of approximately 41% for theyears ended March 31, 2003 and 2002.
Tax effects of significant temporary differences which resulted
in deferred tax assets and liabilities at March 31, 2003 and 2002 wereas follows:(380,226)$(105,772)

Assumptions used for the years ended March 31, 2003 and 2002
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:
Company
Consolidated subsidiaries

Dividends are approved by the shareholders at a meeting held
subsequent to the fiscal year to which the dividends are applicable.
Semiannual interim dividends may also be paid upon resolution of
the Board of Directors, subject to certain limitations imposed by
the Code.

2003

2002

2.0%
0.0%
1 year2.8%
2.5%
1 year

7 years
5 years

7 years
5 years

6. SHAREHOLDERS’ EQUITY
Japanese companies are subject to the Code to which certain
amendments became effective from October 1, 2001.
The Code was revised whereby common stock par value waseliminated resulting in all shares being recorded with no par value
and at least 50% of the issue price of new shares is required to berecorded as common stock and the remaining net proceeds asadditional paid-in capital, which is included in capital surplus. The
Code permits Japanese companies, upon approval of the Board of
Directors, to issue shares to existing shareholders without consideration as a stock split. Such issuance of shares generally does not giverise to changes within the shareholders’ accounts.
The revised Code also provides that an amount at least equal to
10% of the aggregate amount of cash dividends and certain otherappropriations of retained earnings associated with cash outlays
applicable to each period shall be appropriated as a legal reserve (acomponent of retained earnings) until such reserve and additional
paid-in capital equals 25% of common stock. The amount of total
additional paid-in capital and legal reserve that exceeds 25% of thecommon stock may be available for dividends by resolution of theshareholders. In addition, the Code permits the transfer of a portionof additional paid-in capital and legal reserve to the common stockby resolution of the Board of Directors.
The revised Code eliminated restrictions on the repurchase anduse of treasury stock allowing Japanese companies to repurchasetreasury stock by a resolution of the shareholders at the generalshareholders meeting and dispose of such treasury stock by resolution of the Board of Directors beginning April 1, 2002. The repurchased amount of treasury stock cannot exceed the amount available
for future dividend plus amount of common stock, additional paid-in
capital or legal reserve to be reduced in the case where such
reduction was resolved at the general shareholders meeting.
The amount of retained earnings available for dividends under
the Code was ¥94,194 million ($783,644 thousand) as of March 31,
2003, based on the amount recorded in the parent company’s generalbooks of account. In addition to the provision that requires anappropriation for a legal reserve in connection with the cash
payment, the Code imposes certain limitations on the amount ofretained earnings available for dividends.

Thousands of
U.S. Dollars

Millions of Yen

Deferred tax assets:
Current:
Accrued expenses
Enterprise tax
Other
Deferred tax assets—current
Non-current:
Liability for employees’
retirement benefits
Investment securities
Loss on devaluation of land
Unrealized profit
Other
Less valuation allowance
Deferred tax assets—
non-current
Deferred tax liabilities:
Property, plant and equipment
Revaluation of fixed assets
in accordance with special
tax measures
Other
Deferred tax liabilities

2003

2002

2003

¥ 7,875
2,086
810¥10,771¥ 6,2361,484
55¥ 7,775$ 65,513
17,357
6,742$ 89,612¥18,105
2,536
2,722
460
(324)
(2,722)¥28,066
1,779$150,622
21,102
22,6493,826(2,700)(22,649)¥20,777¥29,709

432
(568)

¥
¥
¥

414
(349)
65

$172,850

990$

41¥ 1,0313,444(2,903)$541

A reconciliation between the normal effective statutory tax rate
for the years ended March 31, 2003 and 2002 and the actual effective
tax rates reflected in the accompanying consolidated statements ofincome was as follows:

Normal effective statutory tax rate
Per capita levy of local taxes
Differences from tax rates of foreign
consolidated subsidiaries
Valuation allowance
Other—net
Actual effective tax rate

2003

2002

41.0%
1.8

41.0%
3.2

0.1
3.0
0.8
46.7%

0.3

44.5%

On March 31, 2003, a tax reform law was enacted in Japan whichchanged the normal effective statutory tax rate from 41.0% to 40.0%,
effective for years beginning on or after April 1, 2004. The effect of
this change on deferred taxes in the consolidated statements ofincome for the year ended March 31, 2003 was a decrease of approximately ¥422 million ($3,511 thousand).

8. LEASES

9. CONTINGENT LIABILITIES

Total lease payments under finance lease arrangements that do nottransfer ownership of the leased property to the lessee were ¥3,035
million ($25,253 thousand) and ¥2,660 million for the years ended
March 31, 2003 and 2002, respectively.
Pro forma information of leased property such as acquisition
cost, accumulated depreciation and obligations under finance leases
that do not transfer ownership of the leased property to the lessee on
an “as if capitalized” basis for the years ended March 31, 2003 and2002 was as follows:

Contingent liabilities for guarantees and items of a similar nature atMarch 31, 2003 amounted to ¥335 million ($2,787 thousand) representing guarantees of loans of an unaffiliated company jointly andseverally by the Company and 18 other unaffiliated companies and¥137 million ($1,140 thousand) as guarantees of loans of nonconsolidated subsidiaries.
Based on debt assumption agreements with financial institutions,the Company has transferred the debt repayment obligation forcertain bonds to such financial institutions. At March 31, 2003, theCompany had contingent obligations of ¥25,000 million ($207,987
thousand) in respect of these bonds.

Millions of Yen

2003

Acquisition cost
Accumulated
depreciation
Net leased property

Buildings
andStructures

¥ 5
2
¥ 3

10. NET INCOME PER SHARE

VehiclesMachineryandEquipment

Other
Assets

Total

¥ 72

¥ 14,772¥ 97¥ 14,946

34
¥ 38

¥

7,661
7,111

64
¥ 33

¥

7,761
7,185
Year Ended March 31, 2003

Thousands of U.S. Dollars

2003

Acquisition cost
Accumulated
depreciation
Net leased property

Reconciliation of the differences between basic and diluted net
income per share (“EPS”) for the years ended March 31, 2003 and 2002
is as follows:

Buildings
andStructures

VehiclesMachineryandEquipment

Other
Assets

Total

$41

$598

$122,892$811$124,342

18
$23

285
$313

63,730$ 59,162

534$277

64,567$ 59,775

Basic EPS—Net income
available to commonshareholders
Effect of dilutive
securities—
Convertible bonds
Diluted EPS—Net income
for computation

Millions of Yen

2002

Acquisition cost
Accumulated depreciation
Net leased property

Year Ended March 31, 2002

Buildings
andStructures

VehiclesMachineryandEquipment

Total

¥5
2
¥3

¥75
54
¥21

¥12,581
5,952¥ 6,629¥12,661
6,008¥ 6,653

Obligations under finance leases which included the imputed
interest expense portion, and noncancelable operating leases as ofMarch 31, 2003 and 2002 were as follows:
Millions of Yen

2003

Due within one year
Due after one year
Total

Basic EPS—Net income
available to commonshareholders
Effect of dilutive
securities—
Convertible bonds
Diluted EPS—Net income
for computation

Millionsof YenThousandsof Shares

Net
IncomeWeighted-average
Shares¥48,346462,607106

14,145¥48,452

U.S.
Dollars

Yen
EPS¥104.51$0.87

476,752¥101.63$0.85

Millionsof YenThousandsof Shares

Yen

Net
IncomeWeighted-average
Shares

EPS¥27,383

461,320¥59.36

189

19,220¥27,572

480,540¥57.38

Thousands of
U.S. Dollars

2003

Finance
Lease

Operating
Lease

Finance
Lease

OperatingLease¥2,861
4,324¥7,185

¥ 328
475
¥ 803

$23,799
35,976$59,775$2,7303,954$6,684

Millions of Yen

2002

Due within one year
Due after one year
Total

Finance
Lease

OperatingLease¥2,411
4,242¥6,653¥ 642
1,448¥2,090

YAMATO TRANSPOR T Ann ual Report 2003

36,37

11. 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, 2003 and 2002 is as follows:(1) Industry Segments
Millions of Yen

2003

a. Operating revenues and operating income:Operating revenues to customers
Intersegment operating revenues

Domestic
Transportation

International
Transportation

Information
Communications

Other¥ 856,827
3,644¥ 74,117479¥ 18,888
11,106¥ 22,303
26,831

860,471810,016

74,59672,89729,99428,305

49,13445,092

Total operating revenues
Operating costs and expenses
Operating incomeb. Assets, depreciation and capital expenditures:
AssetsDepreciation
Capital expenditures¥

50,455¥ 424,029
25,23333,026¥

1,699¥ 24,671
642
701

¥

1,689

¥

¥ 20,776
581
4,522

4,042

¥ 35,740
5,090
4,285

Eliminations
or Corporate

Consolidated¥¥(42,060)(40,993)¥

972,135(42,060)(1,067)972,135
915,317¥56,818¥ 150,661
185
57¥ 655,877
31,731
42,591

Consolidated

Thousands of U.S. Dollars

2003
Domestic
Transportation

International
Transportation

Information
Communications

Other

Eliminations
or Corporate

a. Operating revenues and operating income:Operating revenues to customers
Intersegment operating revenues$7,128,347
30,311$616,616
3,984$157,139
92,398$185,547
223,226$ (349,919)

Total operating revenues
Operating costs and expenses

7,158,658
6,738,901

620,600
606,465

249,537
235,486

408,773375,139(349,919)(341,039)

8,087,649
7,614,952

Operating income$ 419,757$ 14,135$ 14,051$ 33,634$(8,880)$ 472,697

b. Assets, depreciation and capital expenditures:
AssetsDepreciation
Capital expenditures$3,527,698
209,922274,759$205,247
5,342
5,830

$172,848
4,836
37,621$297,336
42,34335,653$1,253,421
1,544
475

$5,456,550
263,987354,338

Eliminations
or Corporate

Consolidated$8,087,649

Millions of Yen

2002
Domestic
Transportation

a. Operating revenues and operating income:Operating revenues to customers
Intersegment operating revenues¥

Total operating revenues
Operating costs and expenses
Operating incomeb. Assets, depreciation and capital expenditures:
AssetsDepreciation
Capital expenditures

International
Transportation

Information
Communications

Other834,418
3,375¥ 61,189
202¥ 18,431
10,513¥ 18,082
13,388

837,793
789,809

61,391
60,12728,94427,09331,47028,574¥47,984

¥

1,264

¥

413,700
25,64832,123¥ 27,780
571
450

¥

1,851

¥ 15,803
390
2,876

¥

¥
¥

932,120(27,478)(27,478)(26,672)

932,120878,931

2,896

¥

(806)

¥

53,189¥ 31,827
4,964
4,840

¥

189,829191
90¥

678,939
31,76440,379(2) Geographic Segments
The geographic segments of the Company and consolidated subsidiaries for the years ended March 31, 2003 and 2002 are summarized asfollows:
Millions of Yen

2003

Operating revenues:
Outside customers
InterareaJapan

U.S.A.

EuropeAsia¥ 950,980
4,443¥ 12,661
2,726¥ 3,573
1,197¥ 4,9212,475

955,423

15,387

4,770

7,396

Total operating revenues
Operating costs and expenses

899,115

15,141

Operating income (loss)¥

56,308¥

246

Assets¥ 495,914

¥

3,132

4,822
¥

Eliminations
or Corporate¥ 972,135¥¥¥ 2,003310¥ 2,688(10,841)(10,841)

7,086

(52)

Consolidated

972,135(10,847)¥

6

915,317¥56,818¥ 152,140¥ 655,877

Eliminations
or Corporate

Consolidated

Thousands of U.S. Dollars

2003

Operating revenues:
Outside customers
Interarea
Total operating revenues

Japan

U.S.A.

EuropeAsia$7,911,646
36,961$105,335
22,678$29,726
9,957$40,942
20,591

7,948,607

128,013

39,683

61,533Operating costs and expenses

7,480,151

Operating income (loss)$ 468,456$

125,964

Assets$4,125,741$ 26,054

2,049$8,087,649$(90,187)

40,11458,958(431)$ 2,575$$16,668$22,366$(90,187)
8,087,649(90,235)

7,614,952

48$ 472,697$1,265,721$5,456,550

Eliminations
or Corporate

Consolidated

Millions of Yen

2002

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

Japan

U.S.A.

Other¥ 915,279
3,628¥ 12,873
2,543¥ 3,968
958

918,907

15,416

4,926

866,045

15,102

Operating income¥ 52,862¥

314

Assets¥ 482,685¥ 3,389¥¥(7,129)4,815¥

932,120(7,129)932,120(7,031)

878,931

111

¥

(98)

¥

53,189¥ 1,802¥

191,063¥

678,939

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, 2003 and 2002 amounted to ¥24,402 million ($203,011 thousand) and¥20,845 million, respectively.

12. SUBSEQUENT EVENTS
a. Appropriations of Retained Earnings
The following appropriations of retained earnings at March 31, 2003
were approved at the Company’s shareholders meeting held on June27, 2003:

Year-end cash dividends,¥8.00 ($0.07) per share
Bonuses to directors andcorporate auditors

Millions of Yen

Thousands of
U.S. Dollars¥3,713$30,891

65

541

b. Purchase of Treasury Stock
The Company is authorized to repurchase up to 7,700 thousand sharesof the Company’s common stock or aggregate amount of ¥10,000 million($83,195 thousand).

YAMATO TRANSPOR T Ann ual Report 2003

38,39