Translation

April 28, 2017

Consolidated Financial Results for the Year Ended 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 ordinary general meeting of shareholders: June 23, 2017
Scheduled date of the commencement of dividend payment:
June 2, 2017
Scheduled date of the submission of annual securities report:
June 16, 2017
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Operating revenue

Operating income(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

For the year ended Millions of yen% Millions of yen%
Millions of yen
March 31, 2017
1,466,852
3.6
34,885(49.1)
34,884
March 31, 2016
1,416,413
1.4
68,540(0.6)
69,426(Note) Comprehensive income:For the year ended March 31, 2017: 22,916 million yen ((6.4) %)For the year ended March 31, 2016: 24,482 million yen ((47.1) %)Basic earnings per
share

Diluted earnings
per share

Return on equity%(49.8)(2.1)

Millions of yen
18,05339,424

Ratio of ordinary
income to total
assetsFor the year ended
Yen
Yen
%
March 31, 2017
45.37
—
3.4
March 31, 2016
96.45
95.64
7.1
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2017: (799) million yen
For the year ended March 31, 2016: — million yen

%
3.2
6.4

%
(54.2)
5.0

Ratio of operating
income to operating
revenue%
2.4
4.8(2) Consolidated financial position
Total assets
As ofMarch 31, 2017
March 31, 2016
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
1,114,672
545,559
48.4
1,089,436
543,855
49.4
As of March 31, 2017: 539,179 million yen
As of March 31, 2016: 537,821 million yen

Yen
1,367.51
1,349.56(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2017
March 31, 2016

Millions of yen
73,32449,715

Cash flows frominvesting activities
Millions of yen(73,999)(30,230)

Cash flows fromfinancing activities
Millions of yen(18,777)(16,833)

Cash and cash equivalents
at end of period
Millions of Yen
228,926
249,261

2.

Dividends
Annual dividendsFirstquarter

Fiscal 2016
Fiscal 2017

Secondquarter

Yen
—
—

Yen
13.00
13.00

Third
quarter

Fiscalyear-end

Yen
—
—

Total

Yen
15.00
14.00

Yen
28.00
27.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
11,28010,700

%
29.0
59.5

%
2.1
2.0

Fiscal 2018
—
13.00
—
14.00
27.00
62.6
(Forecast)(Note) Breakdown of year-end dividends in fiscal year ended March 31, 2016: Ordinary dividends:
13.00 yen
Commemorative dividends: 2.00 yen

3.

Consolidated earnings forecasts for fiscal year 2018 (from April 1, 2017 to March 31, 2018)
Operating revenue

Half year
Full year

Millions of yen
708,000
1,470,000

Operating income
%
0.2
0.2

Millions of yen(3,000)30,000%—(14.0)

Ordinary income
Millions of yen(3,000)30,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toearnings
owners of parent
per share%—(14.0)

Millions of yen(6,000)17,000

%
—
(5.8)

Yen
(15.22)
43.12* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Yesb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to consolidated financial
statements (Changes in accounting policies)” of the attached materials to the financial results report on page 22.

(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2017:
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 March 31, 2017:
17,062,391 shares
As of March 31, 2016:
12,823,544 sharesc. Average number of shares during the period
For the year ended March 31, 2017:397,930,271 shares
For the year ended March 31, 2016:
408,742,891 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per share information” onpage 27.

*Financial results reports are not required to be audited.
*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. Overview of Operating Results and Others, (4)Future outlook” of the attached materials to the financial results report on pages 9 to 10.
• The Company plans to hold a financial results meeting for analysts on May 1, 2017. The materials distributed at this financial results meetingshall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index
1. Overview of Operating Results and Others ............................................................................................................. 4(1) Overview of operating results for fiscal 2017..................................................................................................... 4(2) Overview of financial position for fiscal 2017..................................................................................................... 9(3) Overview of cash flows for fiscal 2017 .............................................................................................................. 9(4) Future outlook ................................................................................................................................................... 9(5) Operational and financial issues to be addressed ........................................................................................... 10
2. Fundamental Approach to Selection of Accounting Standards ............................................................................. 10
3. Consolidated Financial Statements and Significant Notes Thereto....................................................................... 11(1) Consolidated balance sheet ............................................................................................................................ 11(2) Consolidated statement of income and consolidated statement of comprehensive income............................ 14(3) Consolidated statement of changes in equity .................................................................................................. 17(4) Consolidated statement of cash flows ............................................................................................................. 19(5) Notes to consolidated financial statements ..................................................................................................... 21(Notes to premise of going concern) ..................................................................................................................... 21(Significant matters forming the basis of preparing the consolidated financial statements) .................................. 21(Changes in accounting policies) .......................................................................................................................... 22(Additional information) ......................................................................................................................................... 22(Consolidated balance sheet) ............................................................................................................................... 22(Segment information)........................................................................................................................................... 22(Per share information) ......................................................................................................................................... 27(Important subsequent matters) ............................................................................................................................ 27
4. Others ................................................................................................................................................................... 28
Operating revenue by business ............................................................................................................................ 28-3-

1. Overview of Operating Results and Others(1) Overview of operating results for fiscal 2017
In the fiscal year ended March 31, 2017, the economic environment was plagued by ongoing uncertainties
ahead due to factors such as effects of shifting U.S. government policy as a consequence of the administration
changing hands and the political situation in Europe, yet gradual economic recovery held course amid
underlying strengths in corporate earnings. Moreover, although small parcel volume has continued to increase
partially due to accelerating growth in the mail order market, conditions surrounding the logistics industry havebeen increasingly severe amid further tightening of the domestic labor market. Operating in this environment,
we worked toward achieving the objectives 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 business model for generating substantial added value by building a premium-quality
network to enable efficient logistics and fusing together the Group’s business resources.
In the Delivery Business, revenues increased against a backdrop of delivery volume having hit a new record
high thanks to efforts geared to adding more points of service access for the “TA-Q-BIN Compact” and“Nekopos” services, along with continued growth in the mail order market. Still, earnings have come underpressure from factors that include rising labor costs such as those involving our outsourcing workforce neededin order to maintain service quality amid further tightening of the labor market.
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.
In addition, we recorded payments for specially acknowledged working hours additionally recognized as theresult of a fact-finding investigation into working hours of employees, which was carried out in the course ofpromoting “reforming working styles” across the entire Group.
Our consolidated financial results for the fiscal year ended March 31, 2017 were as follows.
Item

Fiscal 2016

Fiscal 2017

(Millions of yen)
Growth (%)

ChangeOperating revenue

1,416,413

1,466,852

50,439

3.6

Operating income

68,54034,885(33,654)(49.1)

Ordinary income

69,42634,884(34,541)(49.8)

Profit attributable toowners of parent

39,42418,053(21,370)(54.2)

During the fiscal year ended March 31, 2017, we purchased treasury shares of 4.23 million shares, for a totalacquisition cost of about 10.0 billion yen as measures for shareholder return.
Initiatives for the entire Yamato Groupa. 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.
b. 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. Moreover, we actively engaged in CSR-related activities linked to Yamato Group businessendeavors, such as through environmental and safety measures, and efforts to prosper communities. On
the other hand, working environment has been deteriorating amid a situation where our efforts to build an
operational framework have not kept pace with a recently surging mail order market and other suchdevelopments. To address such issues we launched initiatives for promoting “reforming working styles”
on a Group-wide basis, and accordingly on February 1, 2017 Yamato Transport Co., Ltd. established a“office for reforming working styles,” while respective Group companies established “working styles
innovation committees.” Moreover, successive fact-finding investigations into working hours across the

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c.

d.

e.

entire Group have revealed issues whereby many employees find themselves unable to take long enoughbreaks. We are taking this matter very seriously, and accordingly have been taking steps to develop a
more employee friendly working environment. As such, we have decided to make payments for speciallyacknowledged working hours additionally recognized as part of our efforts to heighten employee
satisfaction. Moreover, to ensure that this never happens again we have been implementing “reforming
working styles” throughout the entire Group, with such efforts centered on the “office for reforming
working styles” of Yamato Transport Co., Ltd., and the “working styles innovation committees” ofrespective Group companies.
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,” “Chubu Gateway” and“Okinawa International Logistics Hub” facilities, in addition to our existing “last mile” network.
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. During the fiscal year ended March 31,
2017, we have been actively promoting efforts to build our cross-border network by further extending it
geographically over the ASEAN and East Asian regions. For instance, we have acquired a cross-borderline-haul trucking company headquartered in Malaysia, reached agreement involving investment in aninternational logistics enterprise based in Guangzhou, China. In January, we have launched TA-Q-BIN
services domestically in Thailand and in March, we have made the decision to commence sales involving“International Cool TA-Q-BIN” services there.
With the aim of improving customer convenience particularly in the mail order market, we have beenworking to establish an environment that ensures customers ease in picking up their parcels. To that end,
we have embarked on efforts to build an open-type network of parcel lockers primarily in train stations
and other such locations. Moreover, we have started reviewing opportunities for rolling out cutting-edge
technologies with our sights set on development of next-generation logistics services. Our efforts to thatend have included collaborating with major companies that provide Internet services and also embarking
on our “RoboNeko Yamato” project which involves providing on-demand delivery services that make useof automated driving technologies.

Summary of each operating segment● Delivery
The delivery volumes of TA-Q-BIN and Kuroneko DM-Bin services are as follows.
Category

Fiscal 2016

Fiscal 2017

(Million parcels/units)
Growth (%)

ChangeTA-Q-BIN

1,731

1,867

136

7.9

Kuroneko DM-Bin

1,536

1,542

5

0.4

a.
b.

c.

d.

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.
With respect to working environment of our employees, we have been developing a framework for broad
reform of work arrangements for employees given the urgent need to improve the workplace environment
with the aim of securing labor capacity amid substantially increasing parcel volume brought about by the
recently surging mail order market and the tightening labor market. Moreover, we have embarked on
initiatives geared to making the working environment more employee-friendly upon having madedecisions with respect to taking action in areas of “reforming working styles.” This includes improving andimplementing thorough labor management, encouraging a work-life balance, modifying service level,placing controls on total TA-Q-BIN volume, and revising basic fees for TA-Q-BIN delivery services.
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 mail-order services by collaborating with multiple flea market websites and offering delivery services
at a greater number of service access points.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and

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e.

f.

actively proposing solutions to address those challenges. Moreover, we worked to boost profitability bymaking 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
for residents by collaborating with numerous municipalities and companies in efforts to provide support
with regard 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 1,151,028 million yen, up 3.5% from the year-ago period due to anincrease in delivery volume of TA-Q-BIN resulting from continuous efforts to increase sales to mail-orderbusiness operators, initiatives pursued to increase the use of the “TA-Q-BIN Compact” and “Nekopos”
services. As for profits, the segment posted operating income of 5,638 million yen, down 85.2% from theyear-ago period. The decrease is attributable to a situation where earnings have come under pressureamid factors such as rising labor costs including those involving outsourcing workforce in order tomaintain service quality amid further tightening of the labor market, an increase in expenses attributable
to external factors such as a higher size-based enterprise tax, and the recording of lump-sum payments
to cover working hours additionally recognized.

● BIZ-Logistics
a. In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions,maintenance and recall handling functions, cleansing functions for medical devices and internationaltransportation functions.
b. For the mail-order industry and others, we are offering one-stop services involving various types oflogistical support in line with customer needs, including support for facilitating everything from placing andaccepting orders to visual monitoring of inventories and enabling speedier shipments. During the fiscal
year ended March 31, 2017, these operations generated favorable results due to factors that included anincreased volume of business-to-business logistics related services launched in the previous fiscal year.
c. 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 fiscal year ended
March 31, 2017, we have been actively promoting efforts to increase sales, in part by working to bring in
new customers.
d. Operating revenue amounted to 108,643 million yen, up 1.7% from the year-ago period due to favorable
results from services related to business-to-business logistics. As for profits, the segment posted
operating income of 4,072 million yen, down 17.0% from the year-ago period mainly due to lackluster
results in overseas transport services and a decrease in business involving product recalls.
● Home Conveniencea. 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.
b. 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 fiscal year ended March 31, 2017, we aggressively forgedahead 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 andstorage, and collection of unwanted items.
c. 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 fiscal year
ended March 31, 2017, we actively worked to increase sales involving services for facilitatingprocurement of return presents of hometown tax payments and other such goods, and office support
services.
d. Operating revenue amounted to 49,163 million yen, up 0.4% from the year-ago period mainly due to-6-

favorable results with respect to use of our Comfortable Lifestyle Support Service and our service forfacilitating procurement. As for profits, the segment posted an operating income of 1,076 million yen,down 6.1% from the year-ago period mainly due to a decrease of highly profitable one-off business.
● e-Businessa. 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
and financial technology with information technology. In addition, with the aim of helping to accelerate
growth of 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.
b. 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 fiscal year ended
March 31, 2017, use of this service increased particularly among our existing large-lot customers, against
a backdrop that included mail-order market growth.
c. 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
and logistics 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 asserial acceptance/dispatch control in warehouses and inventory tracking. During the fiscal year ended
March 31, 2017, we aggressively forged ahead with efforts to increase the sales of these services to IoT
equipment business operators, drawing on the setup technologies and logistics know-how we haveamassed so far.
d. Operating revenue amounted to 45,639 million yen, up 5.3% from the year-ago period mainly as a resultof having achieved a greater volume of business in the “setup and logistics solutions business.” Operating
income was 9,368 million yen, up 4.0% from the year-ago period.
● Financial
a. In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
b. 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 fiscal year ended March 31, 2017, we provided a wide range of payment settlement services toour customers 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.
c. In the lease services business, we have been generating steady results with respect to financial leases
primarily involving trucks and installment sales. We have also been developing peripheral operations that
include providing vehicle referrals and resale support, while forging ahead in making proposals involving
total solutions related to vehicles.
d. Operating revenue amounted to 77,985 million yen, up 7.6% from the year-ago period due to steadyresults of lease services business. As for profits, operating income was 8,243 million yen, down 5.3%
from the year-ago period largely due to lackluster results with respect to volume handled through ourmainstay TA-Q-BIN Collect service.
● Autoworks
a. 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

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b.
c.

“offering insurance plans tailored to customer risk management needs” which provide coverage for such
assets.
In the fiscal year ended March 31, 2017, we took steps to expand sales by aggressively marketing out“Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 24,613 million yen, up 0.6% from the year-ago period as a result of anincrease in the number of vehicles serviced. As for profits, operating income amounted to 3,273 million
yen, down 2.9% from the year-ago period largely as a result of initial investment in new services.

● Othera. 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 fiscal year ended March 31, 2017, service use grewsteadily due to favorable results with respect to chilled transport and other optional services, in addition to
the existing services.
b. Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 3.5% from the year-ago period to 2,182 million yen.
CSR Initiatives
a. The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. During the fiscal year ended March 31, 2017, we held the “6th Yamato Transport Nationwide
Safety Competition” and engaged in efforts to enhance the skills of the Group’s professional drivers withrespect to safe vehicle operation, while also heightening safety awareness and improving driving skills on
a Group-wide basis. In addition, since 1998 we have been holding our “Safety Classes for Children,”through which we convey the importance of traffic safety, in day care facilities, kindergartens andelementary schools across Japan. A total of about 2.99 million people have now participated.
b. 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. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support
for environmental education of children who will bear responsibilities of the next generation. We have heldsuch classes on an ongoing basis nationwide since 2005, attracting about 230 thousand participants so
far.
c. 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 partin training to acquire skills and knowledge necessary for employment.
d. 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 fiscal year ended March 31, 2017, we
initiated our “combined passenger-cargo” operations using scheduled-route passenger buses in Hokkaido
and Kumamoto prefecture, which is in addition to Iwate prefecture and Miyazaki prefecture with suchoperations already, thereby helping to improve lifestyle services for local residents both by keeping
scheduled bus networks running in hilly and mountainous areas where populations are substantiallydeclining and getting older, and also by streamlining distribution in those locations. In addition, in Miyazaki
prefecture we handled “Cool TA-Q-BIN” shipments by implementing a scheduled-route passenger bus
equipped with a storage box exclusively for chilled and frozen goods which is the first in Japan. Moreover,
we continued to engage in efforts geared to revitalizing communities and resolving issues by leveraging
the Yamato Group’s management resources, with respect to initiatives that include helping to watch overelderly residents, supporting tourism, and expanding sales channels for specialty products in respective
regions throughout Japan. As a result, we have worked with government bodies on 1,928 such endeavors
thus far.
e. In order to earn the confidence of Yamato Group’s customers and society acting as a company that forms
an important part of social infrastructure, we embarked on Group-wide initiatives with respect to“reforming working styles.” To such ends, we forged ahead in developing a more comfortable working
environment for employees through efforts that included promoting management in conformity with

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compliance, reviewing our management rules on working hours, and a framework for broad reform ofwork arrangements for our employees.
(2) Overview of financial position for fiscal 2017
Total assets were 1,114,672 million yen as of March 31, 2017, up 25,235 million yen from the end of theprevious fiscal year. The major factor in this was an increase in investment securities of 22,783 million yen.
Liabilities increased 23,531 million yen to 569,113 million yen from the end of the previous fiscal year. The
major factors in this were recording of provision for special wage payments of 15,129 million yen and anincrease in notes and accounts payable - trade of 7,280 million yen.
Total net assets were 545,559 million yen, up 1,703 million yen from the end of the previous fiscal year. The
major factors included the recording of profit attributable to owners of parent of 18,053 million yen, payment ofdividends of surplus of 11,158 million yen and purchase of treasury shares amounting to 10,002 million yen.
Accordingly, the equity ratio decreased by 1.0% from the end of the previous fiscal year to 48.4%.
(3) Overview of cash flows for fiscal 2017
Net cash provided by operating activities amounted to 73,324 million yen, which is an increase of 23,609
million yen compared with the year-ago period. The major factor here included an increase in accrued
consumption taxes of 19,044 million yen.
Net cash used in investing activities was 73,999 million yen. Compared with the year-ago period, the amount of
net cash used increased by 43,769 million yen. This was largely attributable to expenditures of 23,788 million
yen used for the purchase of investment securities, which is an increase of 21,943 million yen compared withthe year-ago period, and also reflects proceeds from sales of property, plant and equipment of 1,874 million
yen, which is a decrease in proceeds of 15,398 million yen compared with the year-ago period.
Net cash used in financing activities was 18,777 million yen. Compared with the year-ago period, the amount of
net cash used increased by 1,944 million yen. This is largely attributable to a net balance of loans payable of
5,295 million yen, which is a decrease of 22,786 million yen compared with the year-ago period, and a 19,933
million yen decrease in proceeds from issuance of bonds compared with the year-ago period, while
expenditures of 10,005 million yen used for the purchase of treasury shares, which is a decrease of 40,007
million yen compared with the year-ago period.
As a result of the above, cash and cash equivalents were 228,926 million yen as of March 31, 2017, down
20,335 million yen from the end of the previous fiscal year.
(4) Future outlook
Going forward, the economic environment is likely to remain one that is plagued by ongoing uncertainties
ahead due to factors such as effects of U.S. government policy and the political situation in Europe, despite theprospect of gradual economic recovery holding course amid underlying strengths in corporate earnings. Small
parcel deliveries are likely to increase due in part to accelerating growth in the mail order market, while at thesame time we are likely to face a severe business environment in the logistics industry going forward amidtightening of the domestic labor market.
In that environment, we will engage in “reforming working styles” and endeavor to improve and develop
working environment across the entire Yamato Group, while redesigning the business model of the overall
Delivery Business so that it is better aligned with the coming era. In the fiscal year ending March 31, 2018, ouroutlook calls for a severe business environment during the first half as we carry out negotiations on volumes
and pricing during the period amid continuing upward momentum with respect to total TA-Q-BIN volume.
Beginning in the second half, however, we expect there to be a trend of recovering earnings amid a scenario
where initiatives involving controls on total volume and pricing begin taking effect, thereby helping to curb
subcontracting expenses and other such costs.
We expect operating revenue will be 1,470.0 billion yen, with operating income at 30.0 billion yen, ordinary-9-

income at 30.0 billion yen and profit attributable to owners of parent at 17.0 billion yen.
(5) Operational and financial issues to be addressed
The Yamato Group will take steps to bring about an approach to management that places top priority on
employee satisfaction, which is to say improving working environment (“reforming working styles”), in a mannerthat first takes prevailing changes in the business environment into account. At the same time, we will pushahead in bringing about transformation of the overall Group’s business model so that it is better aligned withthe coming era, and will also work to satisfy our shareholders, customers, society and employees. To suchends, the Yamato Group will pursue the following strategies:
a. Our efforts to forge a robust corporate culture will involve placing top priority on ensuring levels of qualitythat instill customer confidence while increasing employee satisfaction, strengthening both legal andfinancial governance, and pursuing CSR initiatives.
b. With respect to the “reforming working styles” of Yamato Transport Co., Ltd. which is at the core entity of
the Group, we will pursue efforts geared to placing top priority on “heightening employee satisfaction
through efforts that involve overhauling the workplace into a more upbeat working environment for
employees.” In addition to improving and developing working environment to such ends, we will also set
our sights on redesigning and transforming the business model of the overall Delivery Business so that itis better aligned with the coming era, and accordingly pursue initiatives under a basic framework that isfive-fold in terms of improving and implementing thorough labor management, encouraging a work-lifebalance, modifying service level, placing controls on total TA-Q-BIN volume, and revising basic fees for
TA-Q-BIN delivery services.
c. In addressing the issue of the labor shortage as it extends into the future, we will work to heighten
productivity across every aspect of Group operations, including collection and delivery, back-office andsorting operations, by means of stepping up efforts that involve linking systems with business operatorsand setting up open-type parcel lockers, as well as promoting active use of cutting-edge technologies.
Moreover, to further achieve growth of the business going forward, we will promote initiatives geared to
management centered on “reforming working styles,” and enlist the entire Group in efforts to establish
working environments and personnel systems that are more employee-friendly. We will secure newsources of labor by promoting diversity-related initiatives that involve creating a greater variety of work
arrangements than has been the case thus far, and by expanding opportunities that enable women,
seniors, foreign nationals and others to actively flourish in the workplace.
d. We will contribute to Japanese economic growth strategies by pushing ahead with our “Value Networking”
design which aspires to revolutionize logistics. We will persist with efforts to further develop our “last mile”
network, the greatest strength of the Yamato Group, by making use of our “Haneda Chronogate,” “Atsugi
Gateway,” “Chubu Gateway” and “Okinawa International Logistics Hub” facilities. Furthermore, we will
work toward creating and developing a business model that can generate a high level of added value that
improves logistics speed, quality and costs, by fusing our business resources in areas such as
information, logistics and transaction settlement within this network.
e. With respect to establishing business foundations in overseas markets primarily in Asia, we will promote
cross-border opportunities leveraging the Yamato Group’s capabilities such as those available through the“Okinawa International Logistics Hub.” We will make the notion of a borderless logistics network thatprovides value-added functions a reality by engaging in efforts to expand our cold chain businessprimarily in Asia. In part, we have issued international standards relating to small-lot chilled and frozen
goods delivery services in collaboration with international standards-setting organizations.
f. We will build a platform that links us with government bodies and corporations in various regions
throughout Japan, with the aim of providing support to people in their daily lives and revitalizing their local
communities. We will strive to become the group of companies which is the most appreciated and trusted
by society by creating value that can be shared among corporations and society through our core
operations.

2. Fundamental Approach to Selection of Accounting Standards
The Yamato Group has adopted Japanese GAAP because the Group engages in business primarily in Japan.
However, we intend to give ongoing consideration to IFRS and other accounting standards aligned withupcoming expansion into Asia and other locations overseas.

- 10 -

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

As of March 31, 2017

AssetsCurrent assets
Cash and deposits

249,593

230,128

Notes and accounts receivable - trade197,382

208,130

Accounts receivable - installment

43,647

46,141

Lease investment assets

48,89450,777

Merchandise and finished goods

738

739

Work in process

184

216

Raw materials and supplies

1,935

1,818

Deferred tax assets

14,907

20,684

Other

27,777

29,154

Allowance for doubtful accounts(1,079)(1,282)

Total current assets

583,982

586,510

326,888341,134

Accumulated depreciation(189,315)(196,244)

Buildings and structures, net

137,572

144,889

56,006

61,092

Accumulated depreciation(38,920)(41,561)

Machinery and equipment, net

17,085

19,531

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

Machinery and equipment

Vehicles

196,054

194,073(178,128)(177,671)

17,925

16,401

Land

176,139

178,620

Lease assets

15,41016,448

Accumulated depreciation(6,838)(8,446)

Lease assets, net

8,572

8,001

Construction in progress

23,538

11,749Other

91,93685,968

Accumulated depreciation(67,128)(60,092)

Other, net

24,80725,876405,641405,070

14,525

18,149

Accumulated depreciation
Vehicles, net

Total property, plant and equipment
Intangible assets
Software
Other

6,434

3,522

Total intangible assets

20,96021,671- 11 -

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Investments and other assets
Investment securities*1 31,498*1 54,281

Long-term loans receivable

1,009

1,360

Lease deposits

16,452

16,231

54

117

Deferred tax assets

27,007

26,643

Other

3,737

3,564

Allowance for doubtful accounts

(908)

(778)

Total investments and other assets

78,851

101,420

505,454528,162

1,089,436

1,114,672

Notes and accounts payable - trade148,456

155,736

Short-term loans payable

55,93360,974

Net defined benefit asset

Total non-current assets
Total assets
Liabilities
Current liabilities

Lease obligations

2,509

2,427

Income taxes payable

19,782

14,399Deferred installment income

5,894

6,010

Provision for bonuses

30,676

31,948—*2 15,129

Other

84,84485,222

Total current liabilities

348,097

371,848

Bonds payable

20,00020,000Long-term loans payable

90,51589,900

Lease obligations

5,387

4,866

Provision for special wage payments

Non-current liabilities

Deferred tax liabilities

2,799

3,162

Net defined benefit liability

71,551

70,952

Other

7,229

8,383

197,483

197,264545,581569,113

Total non-current liabilities
Total liabilities- 12 -

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Net assets
Shareholders’ equity
Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

402,375

409,270

Treasury shares(29,075)(39,077)

Total shareholders’ equity

537,348534,241

9,790

10,975

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

750

(422)

Remeasurements of defined benefit plans(10,067)(5,614)

473

4,938

6,034

6,379

543,855

545,559

1,089,436

1,114,672

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 13 -

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

Operating revenue

1,416,413

1,466,852

Operating cost

1,306,200

1,385,492

110,21281,35922,912

24,543

Provision for bonuses

884

999

Retirement benefit expenses

1,061

1,390

Commission fee

4,586

4,168

Taxes and dues

5,632

8,315

Provision of allowance for doubtful accounts

201

709

Depreciation

2,125

2,120

Other

6,213

6,616

Total selling, general and administrative
expenses

41,672

46,47468,54034,885Interest income

138

155

Dividend income

694

691

Gain on sales of vehicles

425

249

Rent income

304

317

Other

893

630

Total non-operating income

2,456

2,044

Interest expenses

547

430

Share of loss of entities accounted for using
equity method

—

799

Other

1,022

816

Total non-operating expenses

1,570

2,045

69,42634,884Gain on sales of non-current assets

354

157

Gain on sales of investment securities

53

599

Other

10

—

Total extraordinary income

418

757

Operating gross profit
Selling, general and administrative expenses
Personnel expenses

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income- 14 -

(Millions of yen)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

Extraordinary loss
Loss on retirement of non-current assets

286

220

Impairment loss

1,154

1,284

Loss on valuation of investment securities—

210

Disaster recovery expenses for the Kumamoto
Earthquake

—

885

Other

324

3

Total extraordinary loss

1,766

2,603

Profit before income taxes

68,07833,037

Income taxes - current

27,43422,093

Income taxes - deferred

980(7,421)

Total income taxes

28,414

14,672

Profit39,66318,364238

311

39,42418,053

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 15 -

(Consolidated statement of comprehensive income)(Millions of yen)
For the year ended
March 31, 2016
Profit

For the year ended
March 31, 201739,66318,364

Other comprehensive income
Valuation difference on available-for-sale securities(3,975)

1,268

Foreign currency translation adjustment(418)(1,174)(10,787)

4,456

—

0

(15,181)

4,551

24,482

22,91624,16522,518316

398

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 16 -

(3) Consolidated statement of changes in equity
For the year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

70,209Total shareholders’equityTreasury shares

395,352(43,007)549,789

Changes of items during
periodDividends of surplus(10,674)(10,674)

Change of scope of
consolidation

87

87

39,42439,424

Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares(1,636)Retirement of treasury
shares(30,915)

Change in ownershipinterest of parent related totransactions with
non-controlling interests(21,815)(50,006)(50,006)

11,207

9,570

52,731

—

(843)

(843)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—(33,396)

7,022

13,932(12,441)

127,234

36,813402,375(29,075)

537,348

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

13,847

1,169

715

15,731

5,678

571,199

Changes of items during
periodDividends of surplus(10,674)

Change of scope of
consolidation

87

Profit attributable to ownersof parent

39,424Purchase of treasury shares(50,006)

Disposal of treasury shares

9,570

Retirement of treasury
shares—Change in ownershipinterest of parent related totransactions with
non-controlling interests(843)

Net changes of items otherthan shareholders’ equity(4,057)(418)(10,783)(15,258)355(14,903)

Total changes of items during
period(4,057)(418)(10,783)(15,258)355(27,344)

Balance at end of current
period9,790

750(10,067)

473

6,034

543,855- 17 -

For the year ended March 31, 2017
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

402,375(29,075)

537,348

Changes of items during
periodDividends of surplus(11,158)(11,158)

Profit attributable to ownersof parent

18,05318,053Purchase of treasury shares
Disposal of treasury shares0(10,002)(10,002)

0

0

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

—

0

6,895

(10,001)(3,106)

127,234

36,813409,270(39,077)

534,241

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

9,790

750

(10,067)

473

6,034

543,855

Changes of items during
periodDividends of surplus(11,158)

Profit attributable to ownersof parent

18,053Purchase of treasury shares(10,002)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

1,184(1,173)

4,453

4,464

345

4,810

Total changes of items during
period1,184(1,173)

4,453

4,464

345

1,703

Balance at end of current
period10,975(422)(5,614)

4,938

6,379

545,559- 18 -

(4) Consolidated statement of cash flows(Millions of yen)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

Cash flows from operating activities
Profit before income taxes

68,07833,037

Depreciation

46,75846,126

Impairment loss

1,154

1,284

Increase (decrease) in net defined benefit liability

2,376

1,897

Increase (decrease) in provision for bonuses

443

1,283

Increase (decrease) in provision for special wage
payments—

15,129Interest and dividend income

(833)

(846)

Interest expenses

778

587

Share of loss (profit) of entities accounted for using
equity method—

799

Loss (gain) on sales of non-current assets

(195)

(154)

Loss on retirement of non-current assets

286

220

Loss (gain) on sales of investment securities

(53)

(599)

Loss (gain) on valuation of investment securities—

210(15,422)(15,594)473

19

Increase (decrease) in notes and accounts payable trade(9,137)

7,454

Other, net(15,810)

14,353

Subtotal

78,897105,207

Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories

Interest and dividend income received

837

837

Interest expenses paid

(791)

(582)

Income taxes paid

(29,227)(32,138)

Net cash provided by (used in) operating activities

49,71573,324

Cash flows from investing activities
Payments into time deposits(1,451)(2,008)Proceeds from withdrawal of time deposits

1,484

806

Purchase of property, plant and equipment(37,426)(43,986)

Proceeds from sales of property, plant andequipment

17,273

1,874

Purchase of investment securities(1,845)(23,788)

109

1,599

Payments of loans receivable(1,150)(1,418)

Collection of loans receivable

1,059

1,028

(10,350)(9,087)

Proceeds from sales of investment securities

Other payments
Other proceeds
Net cash provided by (used in) investing activities- 19 -

2,067

981(30,230)(73,999)

(Millions of yen)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

5,917(2,925)

Repayments of finance lease obligations(3,209)(2,877)

Proceeds from long-term loans payable

38,931

43,720

Repayment of long-term loans payable(16,766)(35,499)

Proceeds from issuance of bonds

19,933—Purchase of treasury shares(50,013)(10,005)

Cash dividends paid

(10,675)(11,155)

Cash dividends paid to non-controlling interests

(45)

(52)

Other, net

(904)

17

(16,833)(18,777)

(654)

(882)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

1,997(20,335)

Cash and cash equivalents at beginning of period

247,051

249,261

Increase in cash and cash equivalents from newly
consolidated subsidiary213—

249,261

228,926

Cash and cash equivalents at end of period- 20 -

(5) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
1.

Scope of consolidation(1) Number of consolidated subsidiaries: 39
Names of major consolidated subsidiaries:
Yamato Transport Co., Ltd.
Yamato Global Express Co., Ltd.
Yamato Global Logistics Japan Co., Ltd.
Yamato Packing Service Co., Ltd.
Yamato Home Convenience Co., Ltd.
Yamato Financial Co., Ltd.
Yamato Autoworks Co., Ltd.

Okinawa Yamato Transport Co., Ltd.
Yamato Logistics Co., Ltd.
Yamato Multi-Maintenance Solutions Co., Ltd.
YAMATO TRANSPORT U. S. A., INC.
Yamato System Development Co., Ltd.
Yamato Lease Co., Ltd.
YAMATO ASIA PTE. LTD.

In the fiscal year under review, Yamato International Logistics (Hong Kong) Ltd., which is the surviving
company, implemented an absorption-type merger and the two companies Yamato Transport (HK) Ltd.
and Yamato Payment Service (HK) Ltd., were absorbed in the merger, and changed its corporate name to
Yamato Logistics (HK) Ltd.
YAMATO INVESTMENT (HONG KONG) LIMITED, established during the fiscal year under review, is
included in the scope of consolidation from the fiscal year under review.
(2) Non-consolidated subsidiaries, etc.
YAMATO LOGISTICS INDIA PVT. LTD. and certain other subsidiaries are not included within the scope of
consolidation. The total assets, operating revenue, profit, and retained earnings of these non-consolidated
subsidiaries are immaterial and, even taken together as a group, they do not exert a significant influenceon the consolidated financial statements.
2.

Application of equity method(1) Number of affiliates accounted for by equity method: 14
Names of major equity method affiliates:
GD EXPRESS CARRIER BHD.
Packcity Japan Co., Ltd.
GUANGZHOU WISEPOWER TRANSPORTATION& DISTRIBUTION GROUP CO., LTD.
Effective from the fiscal year under review, the scope of equity method application encompasses GD
EXPRESS CARRIER BHD., Packcity Japan Co., Ltd. and GUANGZHOU WISEPOWER
TRANSPORTATION & DISTRIBUTION GROUP CO., LTD. upon having newly acquired stock of those
three entities, and also encompasses 11 subsidiaries of GD EXPRESS CARRIER BHD.
(2) Non-consolidated subsidiaries and affiliates not accounted for by equity method
Entities not subject to the equity method such as YAMATO LOGISTICS INDIA PVT. LTD. and certain
other non-consolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain otheraffiliated companies are excluded from the scope of entities accounted for using the equity method
because they do not exert a significant influence on the consolidated financial statements even whentaken together as a group, given immateriality of their profit, retained earnings and other financial results.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

- 21 -

(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 inDepreciation Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) from the fiscal year ended March
31, 2017, and changed the depreciation method for facilities attached to buildings and structures acquired on orafter April 1, 2016 from the declining-balance method to the straight-line method.
As a result, we posted 189 million yen increases across the board in operating income, ordinary income, and profit
before income taxes for the fiscal year ended March 31, 2017.
(Additional information)(Application of ASBJ Guidance on Recoverability of Deferred Tax Assets)
Effective from the fiscal year ended March 31, 2017, the Company has applied the Guidance on Recoverability ofDeferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).
(Consolidated balance sheet)*1 Investment securities for non-consolidated subsidiaries and affiliates are as follows.
Fiscal 2016
Investment securities

1,169(Millions of yen)
Fiscal 2017
21,693*2 Provision for special wage payments
Fiscal 2017
The provision for special wage payments has been recorded on the basis of the estimated amount of payment
with respect to consideration for labor to be paid on the basis of working hours deemed subject to consideration
as a result of the fact-finding investigation regarding work performed during the fiscal year ended March 31,
2017.
(Segment information)
1. Segment information(1) Summary of reportable segment
The reportable segments of the Yamato Group are constituent units of the Yamato Group whose separate
financial information can be obtained. The Board of Directors of the Company periodically examines thesesegments to decide on the allocation of management resources and evaluate business performance.
The Yamato Group consists of six business segments under the umbrella of the Company, a pure holding
company, and these business segments have been formed according to business activity. Business
management is conducted based on this business segment.
Accordingly, based on this business segment, the Yamato Group has the following six reportable segments:
Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial business, andAutoworks business.
Type of services by reportable segment
Reportable segment
Delivery
BIZ-Logistics
Home Convenience
e-Business
Financial
Autoworks

Type of services
Small parcel delivery services for consumers and corporations
Business-to-business distribution
Moving and other lifestyle support services for consumers
Information services for corporations, such as ASP services and development of
information systems
Financial services for consumers and corporations, such as settlement
Collective vehicle management agent business for transportation companies- 22 -

(2) Method of calculating operating revenue, income/loss, assets and other items by reportable segment
The accounting method used for reported business segments complies with accounting policy that has been
adopted in preparing the consolidated financial statements.
(3) Information regarding the amounts of operating revenue, income/loss, assets and other items by reportablesegment
For the year ended March 31, 2016
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,111,875

106,822

48,981

43,35772,446

66,08012,553

15,24630,366

3,342

1,177,956
38,176
649,899

119,375
4,905
60,47164,2281,146
21,43673,7249,009
43,61975,7898,702
242,963

33,961

2,160

532

4,240

4,065

—

—

—

—

—

34,976

2,839

716

6,413

7,466

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,4588,470
1,416,413—
1,416,413
Inter-segment operating revenue or
27,53949,860204,989(204,989)—
transfers
Total
51,99858,3301,621,402(204,989)
1,416,413
Segment income
3,372
26,51591,829(23,288)
68,540
Segment assets
24,264
11,267
1,053,923
35,513
1,089,436
OthersDepreciation
782
296
46,039699
46,739Investment in entities accounted for
—
—
—
—
—
using equity method
Increases of property, plant and
696
692
53,801
143
53,945equipment and intangible assets
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. Adjustments made are as follows.
(1) The adjustment of (23,288 million yen) of segment income resulted from eliminating transactions among segments, etc.
(2) The adjustment of 35,513 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (164,797 million yen) and group-wide assets of 200,311 million yen not allocated to each reportable segment.
(3) The adjustment of 143 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 141 million yen.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 23 -

For the year ended March 31, 2017
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,151,028

108,643

49,163

45,63977,98566,56013,357

14,59334,6713,049

1,217,588
5,638
638,179

122,001
4,072
69,95663,757
1,076
22,34180,3109,368
47,87981,034
8,243
252,745

32,416

2,574

541

4,368

4,402

305

5,056

—

—

—

31,610

4,798

708

3,445

7,379

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,6139,777
1,466,852—
1,466,852
Inter-segment operating revenue or
28,18560,875221,294(221,294)—transfers
Total
52,79970,653
1,688,146(221,294)
1,466,852
Segment income
3,273
35,477
67,149(32,264)
34,885
Segment assets
25,798
11,941
1,068,842
45,8301,114,672
OthersDepreciation
735
410
45,448665
46,114
Investment in entities accounted for
—
—
5,362
13,711
19,073using equity method
Increases of property, plant and
263
591
48,796
197
48,993equipment and intangible assets
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. Adjustments made are as follows.
(1) The adjustment of (32,264 million yen) of segment income resulted from eliminating transactions among segments, etc.
(2) The adjustment of 45,830 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (150,291 million yen) and group-wide assets of 196,122 million yen not allocated to each reportable segment.
(3) The adjustment of 13,711 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 197 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 179 million yen.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.
5. As stated in “Changes in accounting policies,” the Company has applied the “Practical Solution on a Change in Depreciation
Method Due to Tax Reform 2016” from the fiscal year ended March 31, 2017, and changed the depreciation method for facilities
attached to buildings and structures acquired on or after April 1, 2016 from the declining-balance method to the straight-line
method.
As a result, for the fiscal year ended March 31, 2017, segment income of the Delivery Business increased by 169 million yen. The
effect of this application on other segments is immaterial.

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2.

Relevant information
For the year ended March 31, 2016(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko DM-Bin

939,470(Millions of Yen)
Total

Other

82,701

394,241

1,416,413(2) Information by region
a. Operating revenue
Japan

North America
1,390,082

14,850(Millions of Yen)
Total
1,416,413

1,118(Millions of Yen)
Total
405,641

Other
11,480b. Property, plant and equipment
Japan

North America
404,091

Other431(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.
For the year ended March 31, 2017(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko DM-Bin

981,002(Millions of Yen)
Total

Other

81,276

404,572

1,466,852(2) Information by region
a. Operating revenue
Japan

North America
1,441,672

15,389(Millions of Yen)
Total
1,466,852

1,177(Millions of Yen)
Total
405,070

Other
9,789

b. Property, plant and equipment
Japan

North America
403,527

Other364(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.

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3.

Information regarding impairment losses of non-current assets by reportable segment
For the year ended March 31, 2016
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics
816

Autoworks
Impairment loss

Home
Convenience

192

e-Business
—

Other

—
Corporate or
eliminations

Total

136

Financial

—

1,154

322

Home
Convenience
178

9Consolidated

—

1,154

For the year ended March 31, 2017
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics
764

Autoworks
Impairment loss

4.

Other
18

Financial—

Corporate or
eliminations

Total
—

e-Business

1,284

Consolidated—

Information regarding amortization and unamortized balance of goodwill by reportable segment
For the year ended March 31, 2016
Descriptions are omitted, as the monetary value is immaterial.
For the year ended March 31, 2017
Descriptions are omitted, as the monetary value is immaterial.

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1,284(Per share information)
Fiscal 2016
1,349.56 yen
96.45 yen95.64 yen

Net assets per share
Basic earnings per share
Diluted earnings per share

Notes: 1. Diluted earnings per share for fiscal 2017 is not presented since no potential shares exist.
2. The basis for calculating “basic earnings per share” and “diluted earnings per share” is as follows.
Fiscal 2016

Fiscal 2017
1,367.51 yen
45.37 yen—

Fiscal 2017

Basic earnings per share
Profit attributable to owners of parent

39,424 million yen

Amount not belonging to ordinary shareholders
Profit attributable to owners of parent concerning common shares
Average number of shares during the period

18,053 million yen— million yen— million yen

39,424 million yen

18,053 million yen

408,742 thousand shares

397,930 thousand shares

Diluted earnings per share
Adjustments in profit attributable to owners of parent(Administrative fees (net of tax))
Increase in number of common shares(Bonds with subscription rights to shares)
Potential shares that have no dilutive effects and thus are not included in
the calculation of “diluted earnings per share.”(Important subsequent matters)
Not applicable.

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15 million yen— million yen(15 million yen)(— million yen)

3,643 thousand shares— thousand shares(3,643 thousand shares)(— thousand shares)——4. Others
Operating revenue by businessBusiness segment(Millions of yen)
Fiscal year ended
March 31, 2016

Ratio

Fiscal year ended
March 31, 2017

Ratio

Change%%%TA-Q-BIN
1,004,969
71.0
1,047,668
71.4
4.2
Kuroneko DM-Bin
87,545
6.2
85,3835.8(2.5)
Express
42,8003.042,2722.9(1.2)
Delivery
Others
94,837
6.7
99,4976.8
4.9
Eliminations(118,277)(8.4)(123,793)
(8.4)
4.7
Total
1,111,875
78.5
1,151,028
78.5
3.5
Trading logistics service
38,806
2.7
35,583
2.4(8.3)
Sales and Logistics
36,243
2.5
40,390
2.8
11.4
Multi maintenance
15,4901.1
13,9160.9(10.2)BIZ-Logistics Products Logistics *1
4,297
0.3
4,390
0.3
2.2
Others42,246
3.0
43,6373.0
3.3
Eliminations(30,262)(2.1)(29,275)
(2.0)
(3.3)
Total
106,8227.5
108,643
7.4
1.7
Home convenience
42,1083.0
42,0162.9(0.2)
Business convenience
17,773
1.3
17,8471.2
0.4
HomeTechnical Network
4,408
0.3
3,951
0.3
(10.4)
Convenience
Eliminations(15,308)(1.1)(14,651)
(1.0)
(4.3)
Total
48,981
3.5
49,1633.4
0.4
e-logistics solution
10,2750.7
11,4650.8
11.6
Credit card solution
9,441
0.7
9,711
0.7
2.9
IT operating solution
6,413
0.5
6,834
0.5
6.6
e-BusinessWeb-based mail order solution
5,850
0.4
5,625
0.4
(3.8)
Others46,5803.3
53,954
3.7
15.8
Eliminations(35,204)(2.5)(41,952)
(2.9)
19.2
Total
43,357
3.1
45,6393.1
5.3*2
Payment
37,617
2.6
37,403
2.5
(0.6)
Lease
32,054
2.3
36,040
2.5
12.4
Credit & Finance
3,424
0.2
3,650
0.2
6.6
Financial
Others
2,777
0.2
4,021
0.3
44.8
Eliminations(3,427)(0.2)(3,131)
(0.2)
(8.6)
Total
72,446
5.1
77,985
5.3
7.6
Truck solution
47,232
3.3
47,472
3.2
0.5
Others
7,227
0.5
7,888
0.5
9.1
Autoworks
Eliminations(30,001)(2.1)(30,746)
(2.1)
2.5
Total
24,458
1.7
24,613
1.7
0.6
JITBOX Charter service
7,524
0.5
9,126
0.6
21.3
Others52,565
3.7
63,984
4.4
21.7
Other
Eliminations(51,620)(3.6)(63,333)
(4.3)
22.7
Total
8,470
0.6
9,777
0.7
15.4
Total
1,416,413
100.0
1,466,852
100.0
3.6
*1.
Effective from the fiscal year ended March 31, 2017, the name of the Export Factory category in the BIZ-Logistics segment has beenchanged to the Products Logistics.
*2.
Effective from the fiscal year ended March 31, 2017, the name of the TA-Q-BIN Collect category in the Financial segment has beenchanged to the Payment.

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