Translation
July 29, 2016

Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2017
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Senior Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
August 10, 2016
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the first quarter of fiscal year 2017
(cumulative: from April 1, 2016 to June 30, 2016)(1) Consolidated operating results

For the three months ended
June 30, 2016
June 30, 2015
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Profit attributable toOperating revenue
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
341,876
3.9
7,433
80.0
7,666
60.7
3,661
91.8
328,9321.5
4,130(16.3)
4,770(11.2)
1,908(14.9)For the three months ended June 30, 2016: 3,228 million yen (55.0%)
For the three months ended June 30, 2015: 2,083 million yen ((19.5)%)
Basic earnings per share

For the three months ended
June 30, 2016
June 30, 2015

Yen
9.19
4.61

Diluted earnings
per share
Yen
—
4.57

(2) Consolidated financial position
As ofJune 30, 2016
March 31, 2016
(Reference) Equity:2.

Total assets
Millions of yen
1,098,404
1,089,436
As of June 30, 2016: 534,988 million yen

Net assets
Equity ratio
Millions of yen%
541,05248.7
543,855
49.4
As of March 31, 2016: 537,821 million yen

Dividends

Annual dividends
Second quarter
Third quarter
Fiscal year-end
Yen
Yen
Yen
Yen
Fiscal 2016
—
13.00
—
15.00
Fiscal 2017————
Fiscal 2017 (Forecast)
—
13.00
—
14.00
(Notes) Revisions to the forecasts most recently announced: None
Breakdown of year-end dividends in fiscal year ended March 31, 2016: Ordinary dividends:
13.00 yen
Commemorative dividends: 2.00 yen
First quarter

Total
Yen
28.00
—
27.00

3.

Consolidated earnings forecasts for fiscal year 2017 (from April 1, 2016 to March 31, 2017)
Operating revenue

Operating income

Millions of yen%
Millions of yen%
Half year
710,000
3.8
21,000
16.7
Full year
1,460,000
3.1
65,000(5.2)(Note) Revisions to the forecasts most recently announced: Yes(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary income
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
21,00012.7
11,50017.8
28.86
65,500(5.7)
39,000(1.1)
97.86* Notes(1) Changes in significant subsidiaries during the three months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (2) Application of specific accounting for preparing thequarterly consolidated financial statements” of the attached materials to the quarterly financial results report on page 7.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Yes
b. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (3) Changes in accounting policies, changes in accounting
estimates, and restatement” of the attached materials to the quarterly financial results report on page 7.

(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of June 30, 2016:
411,339,992 shares
As of March 31, 2016:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of June 30, 2016:
12,823,603 shares
As of March 31, 2016:
12,823,544 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2016:
398,516,406 shares
For the three months ended June 30, 2015:
413,757,509 shares*Indication regarding execution of quarterly review procedures
At the time of the disclosure of this quarterly financial results report, the quarterly review procedures in accordance with the Financial
Instruments and Exchange Act are in progress.

*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons.
For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts
for the Three Months, (3) Qualitative information on consolidated earnings forecasts” of the attached materials to the quarterly financial
results report on page 7.
• The Company plans to post supplementary materials on quarterly financial results on the Company’s website promptly after theannouncement of the quarterly financial results.

Attached Materials
Index

1. Qualitative Information on Settlement of Accounts for the Three Months................................................................. 2(1) Qualitative information on consolidated operating results ................................................................................. 2(2) Qualitative information on consolidated financial position ................................................................................. 7(3) Qualitative information on consolidated earnings forecasts............................................................................... 7
2. Matters Regarding Summary Information (Notes) .................................................................................................... 7(1) Changes in scope of consolidation and equity method application ................................................................... 7(2) Application of specific accounting for preparing the quarterly consolidated financial statements ...................... 7(3) Changes in accounting policies, changes in accounting estimates, and restatement ....................................... 7(4) Additional information ........................................................................................................................................ 8
3. Consolidated Financial Statements .......................................................................................................................... 9(1) Consolidated balance sheet .............................................................................................................................. 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 11
Consolidated statement of income (cumulative) .............................................................................................. 11
Consolidated statement of comprehensive income (cumulative) ..................................................................... 12(3) Notes to consolidated financial statements ..................................................................................................... 13(Notes to premise of going concern) ................................................................................................................ 13(Segment information, etc.) .............................................................................................................................. 13(Notes on significant changes in the amount of shareholders’ equity) ............................................................. 14
4. Supplementary Information .................................................................................................................................... 15
Operating revenue by business ................................................................................................................................ 15-1-

1. Qualitative Information on Settlement of Accounts for the Three Months(1) Qualitative information on consolidated operating results
During the three months ended June 30, 2016, despite underlying strengths in corporate earnings, theeconomic environment was marked by an outlook of uncertainty with respect to business sentiment andpersonal consumption against a backdrop of adverse factors that included slowing overseas economies, anappreciating yen and share price volatility. The Company also continued to face harsh operating circumstances
as tight labor market conditions persisted. Operating in this environment, we worked toward achieving theobjectives of the Long-Term Management Plan “DAN-TOTSU Management Plan 2019” and the Medium-Term
Management Plan “DAN-TOTSU Three-Year Plan STEP.” To that end, we focused on creation of a businessmodel for generating substantial added value by building a premium-quality network to enable efficient logistics
and fusing together the Group’s business resources.
The Delivery Business generated firm revenues amid increasing delivery volume resulting from efforts geared
to adding points of service access for the “TA-Q-BIN Compact” and “Nekopos” services, along with steps taken
to increase sales to mail-order business operators.
In the non-delivery businesses, we took steps to expand our existing service offerings by enlisting the strengthsof Group companies, while also drawing on Group-wide ties as we aggressively promoted solution sales
geared toward addressing customers’ business challenges.
Our consolidated financial results for the three months ended June 30, 2016 are as follows.
(Millions of yen)
Item
Operating revenue
Operating income
Ordinary income
Profit attributable toowners of parent

For the three months
ended June 30, 2015
328,932
4,130
4,770

For the three months
ended June 30, 2016
341,876
7,433
7,666

1,908

3,661

ChangeGrowth (%)

12,944
3,302
2,896

3.9
80.0
60.7

1,753

91.8

Initiatives for the entire Yamato Group
a.

b.

c.

d.

The Yamato Group has been pursuing its “Value Networking” design, on the basis of creating businessmodels for generating a high level of added value through the combined efforts of our respective
businesses, while at the same time contributing to growth strategies and international competitive
strengths of the Japanese economy. Meanwhile, we are also taking steps to forge a robust corporate
culture that acts as a foundation for business creation and development.
To further promote our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we have been making more effective use of our innovative
network platform consisting of the “Haneda Chronogate,” “Atsugi Gateway” and “Okinawa International
Logistics Hub” facilities, in addition to our existing “last mile” network.
We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we
worked on enhancing the efficiency and dependability of operations, in part by improving our transportsystems and by using our information technology network to enable visual monitoring of operating
volumes. In addition, we redoubled our employee education efforts and focused on building systems for
ensuring that we honor promises made to our customers. Moreover, we actively engaged in CSR-related
activities linked to Yamato Group business endeavors, such as through environmental and safetymeasures, and efforts to prosper communities.
In our business looking toward overseas markets, we have been working to forge inter-regional
collaboration while strengthening our capabilities in respective geographic regions in order to invigorate
our cross-border transportation services involving shipping between five points in Japan, East Asia,
Europe and the Americas, with a focus on the ASEAN region. Moreover, we have been building a parcel
delivery network that provides high added value, by taking steps to expand our small-lot cold chain
services in international logistics.

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e.

f.

With the aim of improving customer convenience particularly in the mail order market, we have beenworking to establish an environment ensures customers greater ease in picking up their parcels. Among
our efforts to that end, we have established “Packcity Japan Co., Ltd.” as a joint venture that sets up andoperates an open-type infrastructure of parcel lockers, in conjunction with a major French manufacturer of
postal service-related equipment.
We have been taking aggressive action to reduce costs through efforts that include implementing thoroughcontrols on costs linked to operating volumes and also pursuing measures to improve productivity, amid adeteriorating external cost environment marked by a tightening labor market.

Summary of each operating segment

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

a.
b.

c.
d.

e.

For the three months
ended June 30, 2015
389
393

For the three months
ended June 30, 2016
429
388

ChangeGrowth (%)
39
(4)

10.0
(1.3)

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
Given expectations for growth in the mail order market, we have been taking steps to expand sales of the“TA-Q-BIN Compact” and “Nekopos” services which enable customers to send small parcels simply at
reasonable fees, and otherwise engaging in efforts to provide greater convenience to our customers who
use such services by strengthening alliances with multiple flea market websites and offering delivery
services at a greater number of service access points. We have also been strengthening our alliance witha major communications application provider and otherwise expanding our range of services that facilitateease of use through means such as advanced notice of scheduled delivery times and parcel inquiry
services.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. Moreover, we worked to boost profitability by making
proposals that provide high added value using the Group’s business resources.
In our business geared toward revitalizing communities, we have been taking steps to improve services forresidents by collaborating with numerous municipalities and companies in efforts to provide support withregard to helping those who face difficulties doing their shopping and watching over elderly residents.
Moreover, we have also been helping to revitalize local industry through initiatives that include lending
support for enabling communities to achieve higher sales of locally produced products by offering swift
delivery to Asia of perishable goods and other agricultural products in a manner that ensures they stay
fresh.
Operating revenue amounted to 265,628 million yen, up 4.2% from the year ago period due to an increasein delivery volume resulting from initiatives pursued to increase points of access to the “TA-Q-BIN
Compact” and “Nekopos” services, steps taken to increase sales to mail-order business operators, andother such efforts. Operating income was 213 million yen, an improvement of 2,902 million yen from theyear-ago period.

 BIZ-Logisticsa.

b.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
For the mail-order industry, we are offering one-stop services involving various types of logistical support
in line with customer needs, including support for facilitating everything from placing and accepting orders
to visual monitoring of inventories and enabling speedier shipments. During the three months ended June30, 2016, these operations generated favorable results due to factors that included an increased volume
of business-to-business logistics related services launched in the previous fiscal year.

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c.

d.

e.

For medical service providers, we have been developing medical device loaner support (storage, cleaningand delivery) and other services that help revolutionize logistics operations. During the three months
ended June 30, 2016, these operations generated firm revenues due to an increasing use of businessmainly from existing customers.
With respect to services for international logistics, we have been providing support to business operators
who are expanding their operations on a global scale. For instance, we have launched services thatinvolve speedy delivery of Japanese merchandise to customers overseas, in collaboration with a major
e-commerce shopping mall overseas.
Operating revenue amounted to 26,171 million yen, up 1.1% from the year-ago period. The increase islargely attributable to favorable results from business-to-business logistics related services, despite
lackluster results from product maintenance and recall services due to repercussions of the previous fiscal
year. As for profits, operating income amounted to 1,195 million yen, down 2.2% from the year-ago period
mainly due to a drop in brisk demand for overseas transport services in the previous fiscal year.

 Home Convenience
a.
b.

c.

d.

In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
With respect to individual customers, the Yamato Group operated a variety of services to assist in daily life
such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances and moving-related services. In the three months ended June 30, 2016, services in this area
gained more widespread use as we aggressively forged ahead with efforts to increase the sales of“Comfortable Lifestyle Support Service,” which aims to help customers resolve everyday inconveniences
associated with house cleaning, home organization and storage, and collection of unwanted items.
For our corporate clients, we have been developing our business support services including “TechnicalNetwork Business” where we combine the networks of the Yamato Group and our construction andinstallation contractors so that we can provide one-stop support in handling everything from household
equipment delivery and set-up, to installation and maintenance of such equipment. During the threemonths ended June 30, 2016, we actively worked to increase sales involving services for facilitatingprocurement of direct-to-consumer food items and other such goods, and office support services.
Operating revenue amounted to 12,377 million yen, up 2.0% from the year-ago period mainly due tofavorable results with respect to use of our Comfortable Lifestyle Support Service. Operating income was
54 million yen, an improvement of 119 million yen from the year-ago period largely as a result of initiatives
to heighten rates of capacity utilization on weekdays.

 e-Business
a.

b.

c.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively conducting solution platform business that combine logistics technology andfinancial technology with information technology. In addition, with the aim of helping to accelerate growthof Yamato Group businesses, we have been moving beyond conventional information technologies
through efforts geared to promoting use of emerging technologies that harness artificial intelligence (AI),the Internet of things (IoT) and other such innovations.
With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the three months ended
June 30, 2016, use of this service increased particularly among our existing large-lot customers, against a
backdrop that included mail-order market growth.
For customers whose needs involve managing products on an individual basis, such as
telecommunications equipment business operators, the Yamato Group has been developing its “setup andlogistics solutions business” which offers services that involve bringing tasks of affixing data to products
and partial processing of merchandise into alignment with information system functions such as serial
acceptance/dispatch control in warehouses and inventory tracking. During the three months ended June30, 2016, these services attracted steady volumes of use among our customers who are expanding theirtelecommunications equipment business operations.

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d.

Operating revenue amounted to 10,858 million yen, up 5.1% from the year-ago period mainly as a result of
having achieved a greater volume of business in the “setup and logistics solutions business.” Operating
income was 1,973 million yen, up 13.4% from the year-ago period.

 Financial
a.
b.

c.
d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, B2B transaction
settlement, and vehicle leasing.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service and our e-money settlement services. During
the three months ended June 30, 2016, we provided a wide range of payment settlement services to ourcustomers who use the “TA-Q-BIN Collect” service by promoting use of our “Kuroneko Web Collect” and“Kuroneko Pay After Delivery” services, and concurrently worked to increase profitability. With oure-money related services, we persisted in our efforts to increase sales generated by our “Multi e-money
Settlement Terminals” rental service.
In the lease services business, we have been forging ahead in making proposals involving total solutions
related to the Group’s network and vehicles. This includes financial leases primarily involving trucks, aswell as operating leases linked with purchases upon lease expiration or re-use of such vehicles.
Operating revenue amounted to 18,626 million yen, up 7.4% from the year-ago period due to steadyresults of lease services business. As for profits, operating income was 1,908 million yen, down 13.6%
from the year-ago period largely due to lackluster results with respect to volume handled through ourmainstay TA-Q-BIN Collect service and an increase in provision of allowance for doubtful accounts.

 Autoworks
a.

b.
c.

In the Autoworks Business, the Yamato Group develops its “24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation,” thereby providing value tologistics operations and logistics service providers in the form of “improvement of vehicle maintenanceconvenience” and “reduced maintenance expenses.” Furthermore, to better provide one-stop service
solutions geared toward customer business operations, we have added services for “maintaining andsafeguarding logistics facilities and equipment, and improving such workplace environments,” along with“offering insurance plans tailored to customer risk management needs” which provide coverage for such
assets.
In the three months ended June 30, 2016, we took steps to expand sales by aggressively marketing out“Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 6,087 million yen, down 5.3% from the year-ago period mainly due toeffects of lower unit price of fuel. Operating income was 1,071 million yen, down 0.4% from the year-ago
period.

 Othera.

b.

The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-volume delivery. In the three months ended June 30, 2016, use of the service steadily
increased due to favorable results from existing service offerings.
Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 10.8% from the year-ago period to 480 million yen.

CSR Initiativesa.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the three months ended June 30, 2016, we carried out our “Zero Accident Campaign,” which
was deployed throughout the entire Group including our TA-Q-BIN operators overseas, and engaged inefforts to heighten safety awareness on a Group-wide basis. In addition, since 1998 we have been holding

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b.

c.

d.

our “Safety Classes for Children,” through which we convey the importance of traffic safety, in day carefacilities, kindergartens and elementary schools across Japan. A total of more than 2.89 million people
have now participated.
The Yamato Group works to ensure that its distribution mechanisms are environmentally sound, under its
policy of “Nekology” (combining “Kuroneko” with “ecology”) for promoting its environmental conservation
initiatives. In the three months ended June 30, 2016, we received the “Logistics Environment Conservation
Activity Award” at the “17th Logistics Environment Award” in recognition of our efforts for “combined
passenger-cargo” operations where we make use of scheduled-route passenger buses to transport
TA-Q-BIN items within certain zones. We also hold “Kuroneko Yamato Environmental Class” sessions
designed to provide support for environmental education of children who will bear responsibilities of thenext generation. We have held such classes on an ongoing basis nationwide since 2005, attracting about
220 thousand participants so far.
Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people can freely
enjoy a lifestyle as a member of the workforce. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the three months ended June 30, 2016, we
provided support for helping to develop communities so that local residents are able to lead comfortable
lives. For instance, working in conjunction with government bodies and corporations, we have been
providing lifestyle support services to residents of housing complexes which are undergoing changes withrespect to people’s life stages, with such services including collective delivery which entails consolidatingparcels of respective parcel delivery companies into our deliveries and shopping on behalf of the residents.
Moreover, we continued to engage in efforts geared to extending a diverse range of services leveraging
the business resources of the Yamato Group, such as by helping to watch over elderly residents andlending support for community revitalization efforts. As a result, we have worked with government bodies
on 1,770 such endeavors thus far.

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(2) Qualitative information on consolidated financial position
Total assets were 1,098,404 million yen as of June 30, 2016, up 8,967 million yen from the end of the previous
fiscal year. The major factor in this was an increase of 15,011 million yen in investment securities.
Liabilities increased 11,770 million yen to 557,351 million yen from the end of the previous fiscal year. The
increase was largely attributable to a 45,583 million yen increase in accrued expenses upon having recognizedscheduled payments of summer bonuses, but was offset by a 17,777 million yen decrease in provision forbonuses and a 14,560 million yen decrease in income taxes payable due to the payment of income taxes.
Total net assets were 541,052 million yen, down 2,802 million yen from the end of the previous fiscal year. Thiswas mainly attributable to a decrease in retained earnings of 2,316 million yen due to the recording of profit
attributable to owners of parent of 3,661 million yen and payment of dividends of surplus of 5,977 million yen.
Accordingly, the equity ratio changed to 48.7% from the previous fiscal year’s 49.4%.
(3) Qualitative information on consolidated earnings forecasts
Looking ahead at the economy, despite expecting a gradual recovery trend, we also anticipate ongoing
uncertainties with respect to the economic outlook overseas and a tightening labor market.
In this environment, the Yamato Group will continue efforts in the Delivery Business to heighten profitability,
largely by continuing to provide highly convenient services and working to maintain and improve quality, while
also promoting proposals to solve customer challenges. Moreover, we aim to achieve further market
penetration with our “TA-Q-BIN Compact” and “Nekopos” services by forging ahead with efforts that include
increasing points of service access and extending sales to mail-order business operators. In the non-delivery
businesses, we will expand the revenue base through efforts to create and develop a business model for
generating a high level of added value by leveraging the Group’s business resources.
On the cost front, we will push forward with our efforts geared toward keeping costs in line with operating
volumes, and improving productivity.
The Yamato Group has made changes to the consolidated earnings forecasts for the half year and for the fullyear of the fiscal year ending March 31, 2017 since the announcement made on April 28, 2016.

2. Matters Regarding Summary Information (Notes)(1) Changes in scope of consolidation and equity method application
Material changes in scope of equity method application
Effective from the first quarter under review, the scope of consolidation encompasses GD Express Carrier Bhd.
and Packcity Japan Co., Ltd. upon having newly acquired stock of those two entities, and also encompasses 11
subsidiaries of GD Express Carrier Bhd.
(2) Application of specific accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the first quarter under review.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution on a Change
in Depreciation Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) from the first quarter
ended June 30, 2016, and changed the depreciation method for facilities attached to buildings and structuresacquired on or after April 1, 2016 from the declining-balance method to the straight-line method.
In addition, the effect of this application on operating income, ordinary income, and profit before income taxes
for the three months ended June 30, 2016 is immaterial.

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(4) Additional information(Application of ASBJ Guidance on Recoverability of Deferred Tax Assets)
Effective from the first quarter ended June 30, 2016, the Company has applied the Guidance on Recoverabilityof Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).

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3. Consolidated Financial Statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2016

As of June 30, 2016

AssetsCurrent assets
Cash and deposits

249,593

233,793

Notes and accounts receivable - trade197,382

195,173

Accounts receivable - installment

43,64745,677

Lease investment assets

48,894

48,732Merchandise and finished goods

738

713

Work in process

184

306

Raw materials and supplies

1,935

1,885

Other

42,68551,786

Allowance for doubtful accounts(1,079)(1,062)

Total current assets

583,982

577,007326,888326,620

Accumulated depreciation(189,315)(190,833)

Buildings and structures, net

137,572

135,786

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

Vehicles

196,054

196,574(178,128)(177,733)

17,925

18,840Land

176,139

176,134

Lease assets

15,41016,932

Accumulated depreciation(6,838)(7,114)

Lease assets, net

8,572

9,818

171,480

164,816(106,048)(99,540)

Accumulated depreciation
Vehicles, net

Other
Accumulated depreciation
Other, net

65,431

65,276405,641

405,856

20,96021,882

Investment securities

31,49846,509Other

48,262

48,199Allowance for doubtful accounts(908)(1,051)

Total investments and other assets

78,851

93,657505,454521,396

1,089,436

1,098,404

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

Total non-current assets
Total assets-9-

(Millions of yen)
As of March 31, 2016

As of June 30, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade148,456

136,170

Short-term loans payable

55,93360,342

Lease obligations

2,509

2,630

Income taxes payable

19,782

5,222

Deferred installment income

5,894

5,973

Provision for bonuses

30,676

12,898Other

84,844

137,186

Total current liabilities

348,097

360,424

Bonds payable

20,00020,000Long-term loans payable

90,51589,088

Lease obligations

5,387

5,930

Net defined benefit liability

71,551

72,156

Non-current liabilities

Other

10,0299,750

Total non-current liabilities

197,483

196,926

545,581557,351

Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

402,375

400,059

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(29,075)(29,075)

Total shareholders’ equity

537,348

535,031

9,790

8,208

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

750

1,129

Remeasurements of defined benefit plans(10,067)(9,381)

473

(42)

6,034

6,064

543,855

541,052

1,089,436

1,098,404

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the three months ended
June 30, 2015

For the three months ended
June 30, 2016

Operating revenue

328,932

341,876

Operating cost

314,796

323,065

Operating gross profit

14,136

18,811

Selling, general and administrative expenses

10,005

11,377

Operating income

4,130

7,433

Non-operating income
Interest income

1341

Dividend income

329

336

Other

485

262

Total non-operating income

828

641

115

165

Foreign exchange losses

–

134

Other

73

107

Total non-operating expenses

189

407

4,770

7,666

Gain on sales of non-current assets

30

145

Total extraordinary income

30

145

Loss on retirement of non-current assets

29

56

Disaster recovery expenses for the Kumamoto Earthquake

–

805

Other

0

2

Total extraordinary loss

30

863

Profit before income taxes

4,771

6,948

Income taxes

2,794

3,219

Profit

1,976

3,728

68

67

1,908

3,661

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income

Extraordinary loss

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the three months ended
June 30, 2015

For the three months ended
June 30, 2016

1,976

3,728

Valuation difference on available-for-sale securities

446(1,566)

Foreign currency translation adjustment

(473)

378

Remeasurements of defined benefit plans, net of tax

133

686

Total other comprehensive income

106

(500)

2,083

3,228

Comprehensive income attributable to owners of parent

2,047

3,145

Comprehensive income attributable to non-controllinginterests

35

82

ProfitOther comprehensive income

Comprehensive income(Breakdown)- 12 -

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Segment information, etc.)[Segment information]
Information regarding the amounts of operating revenue and income or loss by reportable segment
For the three months ended June 30, 2015
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

254,989

25,882

12,136

10,327

17,35016,213

3,092

3,107

6,895

834

271,203(2,689)28,974
1,222

15,244(64)

17,223
1,740

18,1852,210

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
6,426
1,818
328,932—
328,932(2) Inter-segment operating revenue or
7,109
31,09568,348(68,348)—transfers
Total
13,53532,914397,280(68,348)
328,932
Segment income (loss)
1,075
25,08928,584(24,453)
4,130
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment income is 24,889 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 13 -

For the three months ended June 30, 2016
(Millions of yen)
DeliveryOperating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment income

265,628

BIZ-Logistics

Home
Convenience

e-Business

Financial

26,171

12,377

10,85818,626

16,099

3,300

2,980

7,598

760

281,727
213

29,472
1,195

15,35754

18,457
1,973

19,386
1,908

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
6,087
2,127
341,876—
341,876(2) Inter-segment operating revenue or
6,944
40,90578,588(78,588)—transfers
Total
13,031
43,032
420,465(78,588)341,876
Segment income
1,071
34,89841,316(33,882)
7,433
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment income is 34,409 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.
5. Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution on a Change in Depreciation
Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) from the first quarter ended June 30, 2016, and changed
the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016 from thedeclining-balance method to the straight-line method.
In addition, the effect of this application on segment income for the three months ended June 30, 2016 is immaterial.

(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.

- 14 -

4. Supplementary Information
Operating revenue by business
For the three months
For the three months
Fiscal year ended
ended June 30, 2015
ended June 30, 2016
March 31, 2016
ChangeBusiness segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
228,64269.5
239,78270.1
4.9
1,004,969
71.0
Kuroneko DM-Bin
22,755
6.9
21,7036.4(4.6)
87,545
6.2
Express
10,201
3.1
10,3153.0
1.1
42,8003.0
Delivery
Others
22,016
6.7
22,956
6.7
4.3
94,837
6.7
Eliminations(28,626)(8.7)(29,129)(8.5)
1.8(118,277)
(8.4)
Total
254,989
77.5
265,62877.7
4.2
1,111,875
78.5
Trading logistics service
9,809
3.0
9,005
2.6
(8.2)
38,806
2.7
Sales and Logistics
8,986
2.7
9,648
2.9
7.4
36,243
2.5
Multi maintenance
3,266
1.0
3,112
0.9
(4.7)
15,4901.1
BIZ-Logistics Products Logistics *1
1,073
0.3
1,095
0.3
2.1
4,297
0.3
Others
10,767
3.3
10,932
3.2
1.5
42,246
3.0
Eliminations(8,021)(2.4)(7,623)(2.2)(5.0)(30,262)
(2.1)
Total
25,882
7.9
26,1717.7
1.1
106,822
7.5
Home convenience
10,802
3.3
10,8793.2
0.7
42,1083.0
Business convenience
3,610
1.1
3,589
1.0
(0.6)
17,773
1.3
HomeTechnical
Network
838
0.3
894
0.3
6.7
4,408
0.3
Convenience
Eliminations(3,115)(1.0)(2,986)(0.9)(4.1)(15,308)
(1.1)
Total
12,136
3.7
12,3773.6
2.0
48,9813.5
e-logistics solution
2,414
0.7
2,822
0.8
16.9
10,2750.7
Credit card solution
2,458
0.7
2,240
0.7
(8.9)
9,441
0.7
IT operating solution
1,499
0.5
1,651
0.5
10.1
6,413
0.5
Web-based mail ordere-Business
1,309
0.4
1,274
0.4
(2.6)
5,850
0.4
solution
Others
10,3593.1
12,083
3.5
16.6
46,580
3.3
Eliminations(7,713)(2.3)(9,214)(2.7)
19.5(35,204)
(2.5)
Total
10,3273.1
10,8583.2
5.1
43,357
3.1
Payment *2
9,089
2.8
9,012
2.6
(0.8)
37,617
2.6
Lease
7,674
2.3
8,642
2.5
12.6
32,054
2.3
Credit & Finance
853
0.3
926
0.3
8.6
3,424
0.2
Financial
Others
587
0.2
824
0.2
40.3
2,777
0.2
Eliminations
(854)
(0.3)
(780)
(0.2)
(8.7)
(3,427)(0.2)
Total
17,3505.3
18,6265.4
7.4
72,446
5.1
Truck solution
12,225
3.7
11,8003.5(3.5)
47,232
3.3
Others
1,893
0.6
1,848
0.5
(2.4)
7,227
0.5
Autoworks
Eliminations(7,692)(2.3)(7,562)(2.2)(1.7)(30,001)
(2.1)
Total
6,426
2.0
6,087
1.8
(5.3)
24,458
1.7
JITBOX Charter service
1,641
0.5
1,989
0.6
21.2
7,524
0.5
Others32,142
9.7
42,49812.4
32.2
52,565
3.7
Other
Eliminations(31,964)(9.7)(42,360)(12.4)
32.5(51,620)
(3.6)
Total
1,818
0.5
2,127
0.6
16.9
8,470
0.6
Total
328,932
100.0
341,876100.0
3.9
1,416,413
100.0*1. Effective from the first quarter of the fiscal year ending March 31, 2017, the name of the Export Factory category in the BIZ-Logistics
segment has been changed to the Products Logistics.
*2. Effective from the first quarter of the fiscal year ending March 31, 2017, the name of the TA-Q-BIN Collect category in the Financial
segment has been changed to the Payment.

- 15 -