Translation
October 31, 2017

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2018
<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:
November 10, 2017
Scheduled date of the commencement of dividend payment:
December 8, 2017
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 second quarter of fiscal year 2018
(cumulative: from April 1, 2017 to September 30, 2017)(1) Consolidated operating results

For the six months ended
September 30, 2017
September 30, 2016
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
729,802
3.3(12,887)—(12,600)—(12,087)—
706,689
3.3
20,943
16.4
20,916
12.3
11,55418.4
For the six months ended September 30, 2017: (9,173) million yen (—%)
For the six months ended September 30, 2016: 8,787 million yen (10.3%)
Basic earnings per share

For the six months ended
September 30, 2017
September 30, 2016

Diluted earnings
per shareYen(30.66)
28.99

Yen
—
—

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
September 30, 2017
1,072,594
530,769
48.9
March 31, 2017
1,114,672
545,559
48.4(Reference) Equity:
As of September 30, 2017: 524,006 million yen As of March 31, 2017: 539,179 million yen

2.

Dividends
First quarter
Yen——

Second quarter
Yen
13.00
13.00

Fiscal 2017
Fiscal 2018
Fiscal 2018 (Forecast)(Note) Revisions to the forecasts most recently announced: None

Annual dividends
Third quarter
Yen—

Fiscal year-end
Yen
14.00

—

14.00

Total
Yen
27.00
27.00

3.

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

Operating profit

Millions of yen%
Millions of yen%
Full year
1,502,000
2.4
25,000(28.3)(Note) Revisions to the forecasts most recently announced: Yes(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
25,000(28.3)
12,000(33.5)
30.44* Notes(1) Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (4) Notes to consolidated financial
statements, (Application of specific accounting for preparing the quarterly consolidated financial statements)” of the attached materials
to the quarterly financial results report on page 14.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of September 30, 2017:
411,339,992 shares
As of March 31, 2017:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of September 30, 2017:
17,063,292 shares
As of March 31, 2017:
17,062,391 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2017:394,277,124 shares
For the six months ended September 30, 2016:
398,516,397 shares*Quarterly financial results reports are not required to be subjected to quarterly reviews.
*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 Six Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements” of the attached materials to thequarterly financial results report on page 8.
• The Company plans to hold a financial results meeting for analysts on November 1, 2017. The materials distributed at this financial resultsmeeting shall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index

1. Qualitative Information on Settlement of Accounts for the Six Months ..................................................................... 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ........................................................................................................................ 8(3) Explanation of consolidated earnings forecasts and other forward-looking statements .................................... 8
2. Consolidated Financial Statements and Significant Notes Thereto .......................................................................... 9(1) Consolidated balance sheet .............................................................................................................................. 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 11
Consolidated statement of income (cumulative)..................................................................................................... 11
Consolidated statement of comprehensive income (cumulative) ........................................................................... 12(3) Consolidated statement of cash flows ............................................................................................................. 13(4) Notes to consolidated financial statements ..................................................................................................... 14(Notes to premise of going concern) ...................................................................................................................... 14(Notes on significant changes in the amount of shareholders’ equity) ................................................................... 14(Changes in scope of consolidation and equity method application) ...................................................................... 14(Application of specific accounting for preparing the quarterly consolidated financial statements) ........................ 14(Segment information, etc.) .................................................................................................................................... 14
3. Supplementary Information .................................................................................................................................... 16
Operating revenue by business ................................................................................................................................ 16-1-

1. Qualitative Information on Settlement of Accounts for the Six Months(1) Explanation of operating results
During the six months ended September 30, 2017, the economic environment was plagued by ongoing
uncertainties ahead due to factors that have included effects of political developments overseas, yet gradualeconomic recovery held course amid underlying strengths in corporate earnings. Moreover, the logistics
industry continues to face a severe business environment partially due to tightening of the domestic labormarket, which is in addition to an upward trend with respect to small parcel volume partially due to expansion of
the mail order market brought about by rapidly changing styles of consumption.
Under such circumstances, the Yamato Group has drawn up its “KAIKAKU 2019 for NEXT100” medium-term
management plan, which covers three years beginning with the fiscal year ending March 31, 2018. The plan’s
aim is to enhance the management foundations of the Yamato Group in order to continue achieving sustainablegrowth and thereby enable the Group to keep providing high-quality services. Specifically, while placing amanagement focus on “reforming working styles,” the Group intends to carry out reform in the three areas of“structural reform in the Delivery Business,” “reform of revenue and business structure geared to achieving
discrete growth,” and “reform of Group management structure geared to achieving sustainable growth.”
In the Delivery Business, we have been promoting our “structural reforms in the Delivery Business” initiatives
which involve “improving and developing the employee working environment,” “placing controls on total
TA-Q-BIN volume,” “optimizing the entire TA-Q-BIN delivery network,” “boosting efficiency by enhancing the‘last mile’ network,” and “revising TA-Q-BIN basic fees and respective service standards.” With respect to our
objective of “placing controls on total TA-Q-BIN volume” in particular, we have issued requests to our large-lot
corporate clients that include asking that they adjust their shipping schedules during busy seasons and cut
down on re-deliveries so that we can avoid the prospect of surges in parcel volume that would cause greater
employee workloads. At the same time, we are also negotiating review of our rates. However, under the
existing circumstances, our financial performance has been severely affected by a continuing situation where
profits have been pressured by rising labor costs, including those of outsourcing workforce, in conjunction withincreases in TA-Q-BIN delivery volume.
In the non-delivery businesses, results were firm since we took steps to expand our existing service offerings byenlisting the strengths of 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 six months ended September 30, 2017 are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

For the six months
ended September 30, 2016
706,689
20,943
20,916

For the six months
ended September 30, 2017
729,802(12,887)(12,600)

11,554(12,087)

ChangeGrowth (%)

23,112(33,831)(33,516)

3.3——(23,642)—

Initiatives for the entire Yamato Groupa.

The Yamato Group has been taking steps on a Group-wide basis to develop an upbeat working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Reforming
Working Styles” established in Yamato Transport Co., Ltd., and its “Working Styles Innovation
Committees” in its respective Group companies, as a means of placing utmost priority on “reforming
working styles” in order to practice “inclusive management,” a Yamato Group founding principle. Moreover,
we have been pursuing our “Value Networking” design, on the basis of creating business models forgenerating a high level of added value through the combined efforts of our respective businesses, while atthe 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.

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b.

c.

d.

e.

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.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we will make more effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Atsugi Gateway,” “Chubu Gateway” and “Okinawa
International Logistics Hub” facilities, and “Kansai Gateway,” which will go into operation in this Autumn, in
addition to our existing “last mile” network.
In our business looking toward overseas markets, we have been working to forge collaboration among five
regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening our capabilities
in each geographic region to respond to the growth of cross-border logistics. In this fiscal year, we signed
a comprehensive partnership agreement with the leading specialist for express parcel delivery in France.
The agreement was entered into for the purpose of expanding our cross-border small parcel chilled andfrozen transport business between Japan and France, and contains a cross license agreement for sharing
both companies’ know-how with respect to small parcel chilled and frozen transport. Furthermore, we havebeen actively promoting efforts to build cross-border networks that provide substantial added-value withinitiatives involving six Yamato Group companies acquiring certification under international standards
pertaining to chilled and frozen goods delivery services. Furthermore, during the six months ended
September 30, 2017, we took further steps to expand our cold chain business. For instance, in September
we began handling Cool TA-Q-BIN services in Vietnam, and we have also been promoting initiatives toensure safety of food products across food chains encompassing logistics, with our Haneda Chronogate
facility having been the first entity in the world to have been granted certification in the logistics category
under the FSSC 22000 scheme, which is fully recognized by the Global Food Safety Initiative (GFSI).
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. Moreover, tothat end we have been actively promoting efforts to build an open-type network of parcel lockers primarily
in train stations, convenience stores and other such locations. Also, we continued to conduct practical trial
runs of our “RoboNeko Yamato” project which involves providing on-demand delivery services that makeuse of automated driving technologies and worked on other efforts for the development of next-generation
logistics services. Furthermore, during the six months ended September 30, 2017, we have been picking
up the pace with respect to utilizing cutting-edge technologies geared to streamlining transportation, in partby adopting trailers with a new specification never before used in Japan.

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-Bina.
b.

For the six months
ended September 30, 2016
898
759

For the six months
ended September 30, 2017
930
750

ChangeGrowth (%)
32
(9)

3.6
(1.2)

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.
Amid a severe business environment partially due to tightening of the domestic labor market, which is inaddition to an upward trend with respect to small parcel volume partially due to expansion of the mail ordermarket brought about by rapidly changing styles of consumption, we have been promoting our “structuralreforms in the Delivery Business” initiatives which involve “improving and developing the employee
working environment,” “placing controls on total TA-Q-BIN volume,” “optimizing the entire TA-Q-BIN
delivery network,” “boosting efficiency by enhancing the ‘last mile’ network,” and “revising TA-Q-BIN basic
fees and respective service standards.” With respect to our objective of “improving and developing theemployee working environment,” we have taken steps geared to ensuring that employees are able to take

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c.

d.

e.

f.

lunch breaks while also preventing situations where they are subject to long working hours. To that end,
we set earlier deadlines for accepting TA-Q-BIN deliveries, and we changed to a framework of fivedesignated time slots for TA-Q-BIN deliveries, from six time slots previously. Furthermore, we made thedecision to revise TA-Q-BIN basic fees beginning in October. With respect to our objective of “placing
controls on total TA-Q-BIN volume,” we have been issuing requests to our large-lot corporate clients that
include asking that they adjust their shipping schedules during busy seasons and cut down on
re-deliveries so that we can avoid the prospect of surges in parcel volume that would cause greater
employee workloads. At the same time, we also forged ahead in negotiations entailing review of our rates.
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 proceeded with offering a greater number of drop-off points for sending bycollaborating with multiple flea market websites. During the six months ended September 30, 2017, wetook steps to provide greater convenience to our customers who use mail-order services. For instance,
this involved collaborating with large operators of mail-order businesses in launching services geared toenabling customers to specify an open-type parcel locker as a location for pick-up when purchasing
merchandise.
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. During the six months
ended September 30, 2017, we promoted the use of our new “B2 Cloud” shipping label issuance service
which operates using a cloud-based platform with the aim of improving customer convenience.
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 566,749 million yen, up 2.1% from the year-ago period due to continuous
upward trend with respect to delivery volume of TA-Q-BIN backed by growth in the mail order market. As
for profits, the segment posted operating loss of 27,343 million yen due to factors such as an increase inlabor costs including those involving outsourcing workforce in order to maintain service quality.

 BIZ-Logistics
a.

b.

c.

d.

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 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 six
months ended September 30, 2017, these operations generated favorable results due to factors that
included an increased volume of existing services.
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 six months ended
September 30, 2017, results were firm due to an increase in use of such services among newly gained
customers.
Operating revenue amounted to 57,895 million yen, up 11.4% from the year-ago period due to favorable
results from existing services for mail-order business operators. As for profits, the segment posted
operating profit of 2,002 million yen, down 6.8% from the year-ago period due to increased costs ofoutsourcing work in some services such as overseas relocations.

-4- 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 and “Comfortable Lifestyle Support Service” which aims to help
customers resolve everyday inconveniences “inside the home.” During the six months ended September
30, 2017, we continued to take steps to provide greater convenience to our customers through initiatives
that include actively promoting efforts to increase sales of our “Raku Raku Household TA-Q-BIN” service
that makes it easy for customers to send large packages by linking up with flea market website
applications.
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 six months
ended September 30, 2017, results were steady due to our steadily efforts to receive orders for officerelocations.
Operating revenue amounted to 24,149 million yen, up 2.9% from the year-ago period, due mainly to firm
results with respect to use of our moving-related services and “Raku Raku Household TA-Q-BIN” service,
which are our existing services, in addition to orders received for one-off business. Operating profit was
221 million yen, an improvement of 231 million yen from the year-ago period.

 e-Business
a.

b.

c.

d.

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 six months ended
September 30, 2017, use of this service increased particularly among our existing large-lot customers,
against a backdrop that included mail-order market growth.
For our customers who mainly make use of pamphlets, catalogs and other such promotional materials intheir marketing activities, we have been developing our e-On Demand Solutions business which involves
providing total solutions in terms of systems for ordering promotional products, warehouse storage,administration, delivery and other logistics functions, and printing. During the six months ended September
30, 2017, use of such services increased among newly gained customers and existing customers.
Operating revenue amounted to 22,389 million yen, up 2.5% from the year-ago period mainly as a result of
having achieved a greater volume of business in the “Web-based Shipment Control.” Operating profit was
5,003 million yen, up 16.6% from the year-ago period.

 Financiala.
b.

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.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the six months ended September 30, 2017, we provided a wide
range of payment settlement services to our customers who use the “TA-Q-BIN Collect” service by

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c.

d.

promoting use of our “Kuroneko Web Collect” and “Kuroneko Pay After Delivery Services”, andconcurrently worked to increase profitability. Moreover, we proceeded to combine operations that involve
performing calculations with respect to our various payment settlement services, with the aims of slashingcustomer costs, streamlining operations and heightening convenience.
In the lease services business, we have been generating favorable 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.
Operating revenue amounted to 40,890 million yen, up 8.7% from the year-ago period due to steadyresults of business such as lease services business. Operating profit was 4,063 million yen, up 4.8% fromthe year-ago period.

 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 six months ended September 30, 2017, we took steps to expand sales by aggressively marketingout “Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 12,216 million yen, down 1.5% from the year-ago period largely as aresult of sluggish sales of vehicle equipment. As for profits, the segment posted operating profit of 2,385
million yen, up 19.5% 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 six months ended September 30, 2017, service use grewsteadily due to favorable results with respect to existing services.
Operating profit in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies decreased 9.8% from the year-ago period to 959 million yen.

CSR Initiatives
a.

b.

c.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. During the six months ended September 30, 2017, we carried out our “Zero Accident
Campaign,” which was deployed throughout the entire Group including our overseas operations, andengaged in efforts to heighten safety awareness on a Group-wide basis. In addition, since 1998 we havebeen holding our “Safety Classes for Children,” through which we convey the importance of traffic safety,
in day care facilities, kindergartens and elementary schools across Japan. A total of about 3.00 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. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support forenvironmental 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.
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 with

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d.

e.

disabilities 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 six months ended September 30, 2017,
we have been promoting our “combined passenger-cargo” operations using scheduled-route passenger
buses in Iwate prefecture, Miyazaki prefecture, Hokkaido, Kumamoto prefecture and Hyogo prefecture,
thereby helping to improve lifestyle services for local residents both by keeping scheduled bus networks
running in hilly and mountainous areas where populations are substantially declining and getting older, andalso by streamlining distribution in those locations. We have also conducted verification trial runs of“combined passenger-cargo” operations using passenger ferries in conjunction with the Tokyo
Metropolitan Government. In addition, we have been continuously promoting efforts to achieve
streamlining of logistics operations and realize next-generation logistics services at our Next Delivery
SQUARE facility which assumes the role of providing collective delivery services and other aspects oflogistics infrastructure within the Fujisawa Sustainable Smart Town (Fujisawa SST) community which
opened in Kanagawa Prefecture’s Fujisawa City. Moreover, we engaged in efforts geared to revitalizing
communities and resolving issues by leveraging the Yamato Group’s management resources, with respect
to initiatives that include helping to watch over elderly residents, supporting tourism, and expanding sales
channels for specialty products in respective regions throughout Japan. As a result, we have worked withgovernment bodies on 2,005 such endeavors thus far.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on Group-wide initiatives with respect to “reforming working styles” throughdeveloping upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour employees.

-7-(2) Explanation of financial position(Assets, liabilities and net assets)
Total assets were 1,072,594 million yen as of September 30, 2017, down 42,077 million yen from the end of theprevious fiscal year. The major factor in this was a decrease of 54,994 million yen in cash and deposits.
Liabilities decreased 27,287 million yen to 541,825 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 15,884 million yen decrease in loans payable, and a 15,129 million yen
decrease in provision for special wage payments.
Total net assets were 530,769 million yen, down 14,790 million yen from the end of the previous fiscal year.
This was mainly attributable to a decrease in retained earnings of 17,609 million yen due to the recording ofloss attributable to owners of parent of 12,087 million yen and payment of dividends of surplus of 5,519 million
yen.
Accordingly, the equity ratio changed to 48.9% from the previous fiscal year’s 48.4%.
(Cash flows)
Net cash used in operating activities for the six months ended September 30, 2017 amounted to 11,278 million
yen. Compared with the year-ago period, the amount of net cash provided decreased by 36,889 million yen.
This is largely attributable to the recording of loss before income taxes of 13,469 million yen due to a decreasein profit before income taxes of 33,663 million yen.
Net cash used in investing activities was 21,531 million yen. Compared with the year-ago period, the amount of
net cash used decreased by 17,168 million yen. This is largely attributable to a 15,954 million yen decrease inpurchase of investment securities.
Net cash used in financing activities was 22,800 million yen. Compared with the year-ago period, the amount of
net cash used increased by 13,227 million yen. This is largely attributable to a 13,821 million yen increase in
repayment of loans payable.
As a result of the above, cash and cash equivalents were 173,268 million yen as of September 30, 2017, down
55,658 million yen from the end of the previous fiscal year.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Going forward, the economic situation is likely to remain one that is plagued by ongoing uncertainties ahead
due to factors such as effects of political developments overseas, despite the prospect of gradual economic
recovery holding course amid underlying strengths in corporate earnings.
The severe business environment affecting the logistics industry is likely to persist amid factors that include
further tightening of the domestic labor market, amid a continued upward trend with respect to small parcel
volume brought about by rapidly changing styles of consumption and other such trends.
In that environment, we will place a management focus on “reforming working styles” and endeavor to improveand develop the working environment, while in the Delivery Business working to achieve sustainable growthand enhance profitability in order to improve corporate value by promoting our “structural reforms in the
Delivery Business.” In the fiscal year ending March 31, 2018, although we carried out negotiations on volumes,
pricing and other matters, upward momentum with respect to total TA-Q-BIN volume continued during the first
half. 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.
The Yamato Group has made changes to the consolidated earnings forecasts for the full year of the fiscal year
ending March 31, 2018 since the announcement made on July 31, 2017.

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2. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits

230,128

175,134

Notes and accounts receivable - trade208,130

207,715

Accounts receivable - installment

46,141

46,879Lease investment assets

50,77751,737

Merchandise and finished goods

739

627

Work in process

216

222

Raw materials and supplies

1,818

1,845

Other

49,83960,212

Allowance for doubtful accounts(1,282)(1,196)

Total current assets

586,510543,178

341,134

341,877

Accumulated depreciation(196,244)(200,519)

Buildings and structures, net

144,889

141,358

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

Vehicles

194,073

197,439(177,671)(179,867)

16,401

17,571

Land

178,620

178,627

Lease assets

16,44815,804

Accumulated depreciation(8,446)(8,281)

Lease assets, net

8,001

7,522

158,810

162,278(101,653)(103,806)

Accumulated depreciation
Vehicles, net

Other
Accumulated depreciation
Other, net

57,15758,472405,070

403,552

21,671

19,791

Investment securities

54,281

57,567

Other

47,91649,307

(778)

(803)

101,420

106,072

528,162

529,416

1,114,672

1,072,594

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

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9-

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade155,736

144,690

Short-term loans payable

60,974

52,790

Lease obligations

2,427

2,360

Income taxes payable

14,39910,980

Deferred installment income

6,010

6,022

Provision for bonuses

31,94839,075

Provision for special wage payments

15,129—Other

85,222

94,758

Total current liabilities

371,848

350,679

Bonds payable

20,00020,000Long-term loans payable

89,90082,200

Lease obligations

4,866

4,181

Net defined benefit liability

70,952

71,985

Other

11,545

12,778

Total non-current liabilities

197,264

191,146

569,113541,825

Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

409,270

391,661

Treasury shares(39,077)(39,079)

Total shareholders’ equity

534,241

516,629

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

10,975

12,811

Foreign currency translation adjustment

(422)

(631)

Remeasurements of defined benefit plans(5,614)(4,804)

Total accumulated other comprehensive income

4,938

7,376

6,379

6,762

Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

545,559

530,769

1,114,672

1,072,594

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the six months ended
September 30, 2016

For the six months ended
September 30, 2017

Operating revenue

706,689

729,802

Operating cost

662,442717,675

Operating gross profit

44,247

12,126

Selling, general and administrative expenses

23,30325,014

Operating profit (loss)

20,943(12,887)

Non-operating income
Interest income

7666

Dividend income

457

601

Other

578

611

Total non-operating income

1,113

1,279

Interest expenses

294

146

Share of loss of entities accounted for using equity method

237

554

Other

608

290

Total non-operating expenses

1,140

992

20,916(12,600)

Gain on sales of non-current assets

154

141

Gain on sales of investment securities

73—

Total extraordinary income

228

141

Loss on retirement of non-current assets

81

55

Impairment loss—

954

Disaster recovery expenses for the Kumamoto Earthquake

865

—

3

—

950

1,010

Profit (loss) before income taxes

20,193(13,469)

Income taxes

8,514(1,537)

Profit (loss)

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary loss

Other
Total extraordinary loss

11,679(11,931)

Profit attributable to non-controlling interests

124

155

Profit (loss) attributable to owners of parent

11,554(12,087)- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the six months ended
September 30, 2016
Profit (loss)

For the six months ended
September 30, 2017

11,679(11,931)

Valuation difference on available-for-sale securities(1,198)2,156

Foreign currency translation adjustment(3,067)(208)

Remeasurements of defined benefit plans, net of tax

1,373

809

0

0

(2,892)

2,758

8,787

(9,173)Comprehensive income attributable to owners of parent

8,694(9,648)Comprehensive income attributable to non-controllinginterests

93

475

Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)- 12 -

(3) Consolidated statement of cash flows(Millions of yen)
For the six months ended
September 30, 2016

For the six months ended
September 30, 2017

Cash flows from operating activities
Profit (loss) before income taxes

20,193(13,469)

Depreciation

20,835

21,170—954

Increase (decrease) in net defined benefit liability

1,133

1,033

Increase (decrease) in provision for bonuses

6,929

7,130

—

(15,129)

Decrease (increase) in notes and accounts receivable trade

1,453(1,400)

Increase (decrease) in notes and accounts payable - trade(8,505)(11,009)

Other, net

2,715

4,762

Subtotal

44,754(5,956)

Impairment loss

Increase (decrease) in provision for special wage payments

Interest and dividend income received

513

747

Interest expenses paid

(401)

(232)

Income taxes paid

(19,255)(5,837)

Net cash provided by (used in) operating activities

25,611(11,278)(18,133)(16,114)

957

1,110

(16,476)(522)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities390—

Payments of loans receivable(516)(2,250)

Collection of loans receivable

533

473

Other payments(6,151)(6,016)

Other proceeds

697

1,788

(38,699)(21,531)(2,936)

5,943

Repayments of finance lease obligations(1,493)(1,306)

Proceeds from long-term loans payable

18,687

4,000

Repayment of long-term loans payable(17,812)(25,826)

Cash dividends paid

(5,974)(5,515)

(43)

(94)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Other, net(9,572)(22,800)

Effect of exchange rate change on cash and cash equivalents

Net cash provided by (used in) financing activities(2,834)(48)

Net increase (decrease) in cash and cash equivalents(25,495)(55,658)

Cash and cash equivalents at beginning of period

249,261

228,926

Cash and cash equivalents at end of period

223,766

173,268- 13 -

(4) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in scope of consolidation and equity method application)
Material changes in scope of consolidation
YAMATO (CHINA) CO., LTD. is included in the scope of consolidation effective from the first quarter ended
June 30, 2017, due to being newly established by the Company.
(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 second quarter under review.
(Segment information, etc.)[Segment information]
1. Information regarding the amounts of operating revenue and profit or loss by reportable segment
For the six months ended September 30, 2016
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

554,849

51,963

23,474

21,84337,60732,011

6,334

7,131

16,004

1,500

586,861
7,005

58,2982,148

30,605(10)

37,847
4,290

39,107
3,876

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
12,405
4,545
706,689—
706,689(2) Inter-segment operating revenue or
13,95147,511
124,445(124,445)—
transfers
Total
26,35652,057
831,135(124,445)
706,689
Segment profit (loss)
1,996
35,11454,422(33,478)
20,943
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 profit is 34,409 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

- 14 -

For the six months ended September 30, 2017
(Millions of yen)
DeliveryOperating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment profit (loss)

566,749

BIZ-Logistics

Home
Convenience

e-Business

Financial

57,89524,14922,38940,89033,619

6,618

7,347

19,274

1,458

600,369(27,343)

64,513
2,002

31,497
221

41,664
5,003

42,3494,063

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
12,216
5,509
729,802—729,802(2) Inter-segment operating revenue or
15,14730,797
114,263(114,263)—
transfers
Total
27,36436,307844,065(114,263)
729,802
Segment profit (loss)
2,385
17,220
3,553(16,441)(12,887)
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 profit is 17,482 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment profit and operating loss in the consolidated statement of income.

2. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
In the BIZ-Logistics segment, the Company has decreased the book value of an asset group with diminishedprofitability to the recoverable value, and has accordingly recorded an impairment loss of 685 million yen forthe six months ended September 30, 2017.

- 15 -

3. Supplementary Information
Operating revenue by business
For the six months ended
For the six months ended
Fiscal year ended
September 30, 2016
September 30, 2017
March 31, 2017
ChangeBusiness segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
504,13471.3
517,25470.9
2.6
1,047,668
71.4
Kuroneko DM-Bin
42,304
6.0
41,7065.7(1.4)
85,383
5.8
Express
20,896
3.0
20,7972.8(0.5)
42,272
2.9
Delivery
Others
46,8096.6
50,0366.9
6.9
99,497
6.8
Eliminations(59,293)(8.4)(63,045)(8.6)
6.3(123,793)
(8.4)
Total
554,84978.5
566,749
77.7
2.1
1,151,028
78.5
Trading logistics service
16,4482.3
18,561
2.5
12.8
35,583
2.4
Sales and Logistics
19,295
2.8
22,1423.0
14.8
40,3902.8
Multi maintenance
6,349
0.9
6,857
0.9
8.0
13,9160.9
BIZ-Logistics Products Logistics
2,152
0.3
2,342
0.3
8.8
4,390
0.3
Others21,793
3.1
23,008
3.2
5.6
43,637
3.0
Eliminations(14,076)(2.0)(15,018)(2.1)
6.7(29,275)
(2.0)
Total
51,963
7.4
57,8957.9
11.4
108,643
7.4
Home convenience
20,2682.8
20,9142.9
3.2
42,016
2.9
Business convenience
8,481
1.2
8,325
1.1
(1.8)
17,847
1.2
HomeTechnical
Network
1,865
0.3
2,268
0.3
21.6
3,951
0.3
Convenience
Eliminations(7,141)(1.0)(7,358)(1.0)
3.1(14,651)
(1.0)
Total
23,474
3.3
24,1493.3
2.949,1633.4
e-logistics solution
5,615
0.8
5,702
0.8
1.6
11,4650.8
Credit card solution
4,689
0.7
5,003
0.7
6.7
9,711
0.7
IT operating*
3,205
0.4
3,365
0.5
5.0
6,834
0.5
Web-based mail ordere-Business
2,688
0.4
2,577
0.4
(4.1)
5,625
0.4
solution
Others
26,5903.8
26,9143.7
1.2
53,954
3.7
Eliminations(20,945)(3.0)(21,173)(2.9)
1.1(41,952)
(2.9)
Total
21,843
3.1
22,3893.1
2.5
45,639
3.1
Payment
18,016
2.5
17,7452.4(1.5)
37,4032.5
Lease
17,501
2.5
19,7462.7
12.8
36,0402.5
Credit & Finance
1,819
0.3
1,890
0.3
3.9
3,650
0.2
Financial
Others
1,811
0.2
3,007
0.4
66.0
4,021
0.3
Eliminations(1,541)(0.2)(1,498)(0.2)(2.8)(3,131)(0.2)
Total
37,607
5.3
40,890
5.6
8.7
77,985
5.3
Truck solution
23,934
3.4
24,4373.3
2.1
47,472
3.2
Others
3,649
0.5
4,222
0.6
15.7
7,888
0.5
Autoworks
Eliminations(15,179)(2.1)(16,442)(2.3)
8.3(30,746)
(2.1)
Total
12,405
1.8
12,216
1.7(1.5)
24,613
1.7
JITBOX Charter service
4,172
0.6
4,645
0.6
11.3
9,126
0.6
Others49,655
7.0
33,655
4.6(32.2)
63,9844.4
Other
Eliminations(49,282)(7.0)(32,791)(4.5)(33.5)(63,333)
(4.3)
Total
4,545
0.6
5,509
0.8
21.2
9,777
0.7
Total
706,689
100.0
729,802
100.0
3.3
1,466,852
100.0* Effective from the first quarter of the fiscal year ending March 31, 2018, the name of the IT operating solution category in the e-Businesssegment has been changed to the IT operating.

- 16 -