Translation
October 31, 2016

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

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Senior Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
November 10, 2016
Scheduled date of the commencement of dividend payment:
December 9, 2016
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 2017
(cumulative: from April 1, 2016 to September 30, 2016)(1) Consolidated operating results

For the six months ended
September 30, 2016
September 30, 2015
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Profit attributable toOperating revenue
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
706,689
3.3
20,943
16.4
20,916
12.3
11,55418.4
683,785
1.6
18,000(15.4)
18,627(16.6)
9,759(19.7)For the six months ended September 30, 2016: 8,787 million yen (10.3%)
For the six months ended September 30, 2015: 7,964 million yen ((38.7)%)
Basic earnings per share

For the six months ended
September 30, 2016
September 30, 2015

Yen
28.99
23.71

Diluted earnings
per share
Yen
—
23.48

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
September 30, 2016
1,080,977
546,61150.0
March 31, 2016
1,089,436
543,855
49.4(Reference) Equity:
As of September 30, 2016: 540,537 million yen As of March 31, 2016: 537,821 million yen

2.

Dividends

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

Total
Yen
28.00
—
27.00

3.

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

Operating income

Millions of yen%
Millions of yen%
Full year
1,460,000
3.1
65,000(5.2)(Note) Revisions to the forecasts most recently announced: None

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary income
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
65,500(5.7)
39,000(1.1)
97.86* 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. Matters Regarding Summary Information (Notes), (2) Application of specific accounting for preparing thequarterly consolidated financial statements” of the attached materials to the quarterly financial results report on page 7.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Yes
b. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (3) Changes in accounting policies, changes in accounting
estimates, and restatement” of the attached materials to the quarterly financial results report on page 8.

(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, 2016:
411,339,992 shares
As of March 31, 2016:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of September 30, 2016:
12,823,642 shares
As of March 31, 2016:
12,823,544 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2016:
398,516,397 shares
For the six months ended September 30, 2015:
411,611,429 shares*Indication regarding execution of quarterly review procedures
At the time of the disclosure of this quarterly financial results report, the quarterly review procedures in accordance with the Financial
Instruments and Exchange Act are in progress.

*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons.
For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts
for the Six Months, (3) Qualitative information on consolidated earnings forecasts” of the attached materials to the quarterly financial results
report on page 7.
• The Company plans to hold a financial results meeting for analysts on November 1, 2016. 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) Qualitative information on consolidated operating results ................................................................................. 2(2) Qualitative information on consolidated financial position ................................................................................. 7(3) Qualitative information on consolidated earnings forecasts............................................................................... 7
2. Matters Regarding Summary Information (Notes) .................................................................................................... 7(1) Changes in scope of consolidation and equity method application ................................................................... 7(2) Application of specific accounting for preparing the quarterly consolidated financial statements ...................... 7(3) Changes in accounting policies, changes in accounting estimates, and restatement ....................................... 8(4) Additional information ........................................................................................................................................ 8
3. Consolidated Financial Statements .......................................................................................................................... 9(1) Consolidated balance sheet .............................................................................................................................. 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 11
Consolidated statement of income (cumulative) .............................................................................................. 11
Consolidated statement of comprehensive income (cumulative) ..................................................................... 12(3) Consolidated statement of cash flows ............................................................................................................. 13(4) Notes to consolidated financial statements ..................................................................................................... 14(Notes to premise of going concern) ................................................................................................................ 14(Segment information, etc.) .............................................................................................................................. 14(Notes on significant changes in the amount of shareholders’ equity) ............................................................. 15
4. Supplementary Information .................................................................................................................................... 16
Operating revenue by business ................................................................................................................................ 16-1-

1. Qualitative Information on Settlement of Accounts for the Six Months(1) Qualitative information on consolidated operating results
During the six months ended September 30, 2016, the economic environment continued to be plagued byongoing uncertainties ahead with respect to slowing overseas economies, an appreciating yen and other suchfactors, despite signs of gradual economic recovery amid underlying strengths in corporate earnings. The
Company also continued to face harsh operating circumstances as tight labor market conditions persisted.
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 bybuilding a premium-quality network to enable efficient logistics and fusing together the Group’s businessresources.
The Delivery Business generated firm revenues amid increasing delivery volume resulting from efforts geared
to adding points of service access for the “TA-Q-BIN Compact” and “Nekopos” services, along with steps taken
to increase sales to mail-order business operators.
In the non-delivery businesses, we took steps to expand our existing service offerings by enlisting the strengthsof Group companies, while also drawing on Group-wide ties as we aggressively promoted solution sales
geared toward addressing customers’ business challenges.
Our consolidated financial results for the six months ended September 30, 2016 are as follows.
(Millions of yen)
Item
Operating revenue
Operating income
Ordinary income
Profit attributable toowners of parent

For the six months
ended September 30, 2015
683,785
18,00018,627For the six months
ended September 30, 2016
706,689
20,943
20,916

9,759

11,554

ChangeGrowth (%)

22,903
2,943
2,288

3.3
16.4
12.3

1,795

18.4

Initiatives for the entire Yamato Group
a.

b.

c.

d.

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

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e.

f.

building of our cross-border network in the ASEAN market included reaching an agreement with a Thaicompany regarding establishment of a joint venture that will carry out TA-Q-BIN operations in Thailand,
and reaching another agreement regarding acquisition of a cross-border line-haul trucking company
headquartered in Malaysia.
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 andother such locations.
We have been taking aggressive action to reduce costs through efforts that include implementing thoroughcontrols on costs linked to operating volumes and also pursuing measures to improve productivity, amid adeteriorating external cost environment marked by a tightening labor market.

Summary of each operating segment

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

a.
b.

c.
d.

e.

For the six months
ended September 30, 2015
821
757

For the six months
ended September 30, 2016
898
759

ChangeGrowth (%)
77
2

9.4
0.4

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
Given expectations for growth in the mail order market, we have been taking steps to expand sales of the“TA-Q-BIN Compact” and “Nekopos” services which enable customers to send small parcels simply at
reasonable fees, and otherwise engaging in efforts to provide greater convenience to our customers who
use mail-order services by collaborating with multiple flea market websites and offering delivery services at
a greater number of service access points. We have also been working to provide greater convenience tocustomers taking delivery of parcels by adding the new “My Calendar” service to our free “Kuroneko
Members” service so that our customers can pre-designate date and time preferences for deliveries.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. Moreover, we worked to boost profitability by making
proposals that provide high added value using the Group’s business resources.
In our business geared toward revitalizing communities, we have been taking steps to improve services forresidents by collaborating with numerous municipalities and companies in efforts to provide support withregard to helping those who face difficulties doing their shopping and watching over elderly residents.
Moreover, we have also been helping to revitalize local industry through initiatives that include lending
support for enabling communities to achieve higher sales of locally produced products by offering swift
delivery to Asia of perishable goods and other agricultural products in a manner that ensures they stay
fresh.
Operating revenue amounted to 554,849 million yen, up 4.0% from the year-ago period due to an increasein delivery volume resulting from continuous efforts to increase sales to mail-order business operators,
initiatives pursued to increase the use of the “TA-Q-BIN Compact” and “Nekopos” services, and otherfactors. Operating income was 7,005 million yen, an increase of 68.1% from the year-ago period.

 BIZ-Logisticsa.

b.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
For the mail-order industry 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, 2016, these operations generated favorable results due to factors that

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c.

d.

included an increased volume of business-to-business logistics related services launched in the previous
fiscal year.
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, 2016, these operations generated firm revenues due to an increasing use of businessmainly from existing customers.
Operating revenue amounted to 51,963 million yen, down 4.7% from the year-ago period despite favorable
results from services related to business-to-business logistics, mainly due to lackluster results in overseas
transport services and a decrease in business involving product recalls. Operating income amounted to2,148 million yen, down 18.3% from the year-ago period.

 Home Convenience
a.
b.

c.

d.

In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
With respect to individual customers, the Yamato Group operated a variety of services to assist in daily life
such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances and moving-related services. In the six months ended September 30, 2016, we aggressively
forged ahead with efforts to increase the sales of “Comfortable Lifestyle Support Service,” which aims tohelp customers resolve everyday inconveniences associated with house cleaning, home organization andstorage, and collection of unwanted items.
For our corporate clients, we have been developing our business support services including “TechnicalNetwork Business” where we combine the networks of the Yamato Group and our construction andinstallation contractors so that we can provide one-stop support in handling everything from household
equipment delivery and set-up, to installation and maintenance of such equipment. During the six months
ended September 30, 2016, we actively worked to increase sales involving services for facilitatingprocurement of direct-to-consumer food items and other such goods, and office support services.
Operating revenue amounted to 23,474 million yen, up 0.7% from the year-ago period mainly due tofavorable results with respect to use of our Comfortable Lifestyle Support Service and service forfacilitating procurement. As for profits, the segment posted an operating loss of 10 million yen amid asituation where earnings were insufficient to cover income gains generated in the previous fiscal year
largely from highly profitable one-off business.

 e-Business
a.

b.

c.

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

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d.

Operating revenue amounted to 21,843 million yen, up 4.4% from the year-ago period mainly as a result of
having achieved a greater volume of business in the “setup and logistics solutions business.” Operating
income was 4,290 million yen, up 10.8% from the year-ago period.

 Financial
a.
b.

c.

d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, B2B transaction
settlement, and vehicle leasing.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service and our e-money settlement services. During
the six months ended September 30, 2016, 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.
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.
Operating revenue amounted to 37,607 million yen, up 8.1% from the year-ago period due to steadyresults of lease services business. As for profits, operating income was 3,876 million yen, down 8.4% fromthe year-ago period largely due to lackluster results with respect to volume handled through our mainstay
TA-Q-BIN Collect service.

 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, 2016, we took steps to expand sales by aggressively marketingout “Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 12,405 million yen, down 3.0% from the year-ago period mainly due toeffects of lower unit price of fuel. Operating income was 1,996 million yen, down 1.6% 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, 2016, service use grewsteadily due to favorable results with respect to chilled transport and other optional services, in addition to
the existing services.
Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 10.6% from the year-ago period to 1,063 million yen.

CSR Initiativesa.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the six months ended September 30, 2016, we carried out our “Zero Accident Campaign,”

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b.

c.

d.

which was deployed throughout the entire Group including our TA-Q-BIN operators overseas, 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 2.92 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 withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the six months ended September 30, 2016,
we initiated our “combined passenger-cargo” operations using scheduled-route passenger buses in
Hokkaido, after having commenced such operations in Iwate and Miyazaki prefectures previously, thereby
helping to improve lifestyle services for local residents both by keeping scheduled bus networks running inhilly and mountainous areas where populations are substantially declining and getting older, and also bystreamlining distribution in those locations. Moreover, we continued to engage in efforts geared torevitalizing 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, andexpanding sales channels for specialty products in respective regions throughout Japan. As a result, wehave worked with government bodies on 1,841 such endeavors thus far.

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(2) Qualitative information on consolidated financial position(Assets, liabilities and net assets)
Total assets were 1,080,977 million yen as of September 30, 2016, down 8,458 million yen from the end of theprevious fiscal year. The major factor in this was a decrease of 5,227 million yen in notes and accounts
receivable - trade.
Liabilities decreased 11,215 million yen to 534,365 million yen from the end of the previous fiscal year. The
decrease was largely attributable to an 8,945 million yen decrease in notes and accounts payable - trade and a
6,698 million yen decrease in income taxes payable due to the payment of income taxes.
Total net assets were 546,611 million yen, up 2,756 million yen from the end of the previous fiscal year. Thiswas mainly due to the recording of profit attributable to owners of parent of 11,554 million yen and payment ofdividends of surplus of 5,977 million yen.
Accordingly, the equity ratio changed to 50.0% from the previous fiscal year’s 49.4%.
(Cash flows)
Net cash provided by operating activities for the six months ended September 30, 2016 amounted to 25,611
million yen. Compared with the year-ago period, the amount of net cash provided increased by 39,941 million
yen. This is largely attributable to a 20,348 million yen increase in accrued consumption taxes and a 16,573
million yen increase in notes and accounts payable - trade.
Net cash used in investing activities was 38,699 million yen. Compared with the year-ago period, the amount of
net cash used increased by 15,613 million yen. This is largely attributable to a 15,701 million yen increase inpurchase of investment securities.
Net cash used in financing activities was 9,572 million yen. Compared with the year-ago period, the amount of
net cash used decreased by 2,289 million yen. This is largely attributable to a 18,156 million yen increase in
repayment of loans payable, against a decrease of 20,005 million yen in purchase of treasury shares.
As a result of the above, cash and cash equivalents were 223,766 million yen as of September 30, 2016, down
25,495 million yen from the end of the previous fiscal year.
(3) Qualitative information on consolidated earnings forecasts
Looking ahead at the economy, while expecting a gradual recovery in Japan, we anticipate ongoing
uncertainties with respect to the economic outlook overseas and a tightening labor market.
In this environment, the Yamato Group will expand its revenue base through efforts to create and develop abusiness model for generating a high level of added value by leveraging the Group's business resources. In the
Delivery Business, we will endeavor to heighten profitability by taking steps to further expand sales of our“TA-Q-BIN Compact” and “Nekopos” services, while also working to enhance customer convenience inreceiving parcels. In the non-delivery businesses, we will continue promoting our solution sales.
On the cost front, we will push forward with our efforts geared toward keeping costs in line with operating
volumes, and improving productivity.
The Yamato Group has not made any changes to the consolidated earnings forecasts for the full year of the
fiscal year ending March 31, 2017 since the announcement made on July 29, 2016.

2. Matters Regarding Summary Information (Notes)(1) Changes in scope of consolidation and equity method application
Material changes in scope of equity method application
Effective from the first quarter ended June 30, 2016, the scope of equity method application encompasses GD
Express Carrier Bhd. and Packcity Japan Co., Ltd. upon having newly acquired stock of those two entities, andalso encompasses 11 subsidiaries of GD Express Carrier Bhd.
(2) Application of specific accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the second quarter under review.

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(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution on a Change
in Depreciation Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) from the first quarter
ended June 30, 2016, and changed the depreciation method for facilities attached to buildings and structuresacquired on or after April 1, 2016 from the declining-balance method to the straight-line method.
In addition, the effect of this application on operating income, ordinary income, and profit before income taxes
for the six months ended September 30, 2016 is immaterial.
(4) Additional information(Application of ASBJ Guidance on Recoverability of Deferred Tax Assets)
Effective from the first quarter ended June 30, 2016, the Company has applied the Guidance on Recoverabilityof Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).

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

As of September 30, 2016

AssetsCurrent assets
Cash and deposits

249,593

224,530

Notes and accounts receivable - trade197,382

192,154

Accounts receivable - installment

43,64745,613

Lease investment assets

48,89449,896Merchandise and finished goods

738

777

Work in process

184

351

Raw materials and supplies

1,935

1,797

Other

42,68545,330Allowance for doubtful accounts(1,079)(1,058)

Total current assets

583,982559,393

326,888341,245

Accumulated depreciation(189,315)(192,782)

Buildings and structures, net

137,572

148,463

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

Vehicles

196,054

193,721(178,128)(175,403)

17,925

18,318Land

176,139

176,129

Lease assets

15,41016,498

Accumulated depreciation(6,838)(7,350)

Lease assets, net

8,572

9,147

171,480

155,785(106,048)(100,819)

Accumulated depreciation
Vehicles, net

Other
Accumulated depreciation
Other, net

65,431

54,966405,641

407,025

20,96022,526

Investment securities

31,49845,104

Other

48,26247,892

Allowance for doubtful accounts

(908)

(963)

Total investments and other assets

78,851

92,032505,454521,584

1,089,436

1,080,977

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

Total non-current assets
Total assets-9-

(Millions of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade148,456

139,510

Short-term loans payable

55,933

63,131

Lease obligations

2,509

2,540

Income taxes payable

19,782

13,084

Deferred installment income

5,894

6,012

Provision for bonuses

30,67637,571Other

84,844

84,041

Total current liabilities

348,097345,893

Bonds payable

20,00020,000Long-term loans payable

90,51579,949Lease obligations

5,387

5,557

Net defined benefit liability

71,551

72,684Non-current liabilities

Other

10,02910,280Total non-current liabilities

197,483

188,472

545,581534,365

Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

402,375

407,952

Total liabilities
Net assets
Shareholders’ equity

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

Total shareholders’ equity

537,348542,924

9,790

8,623

Foreign currency translation adjustment

750(2,316)

Remeasurements of defined benefit plans(10,067)(8,694)473(2,387)

6,034

6,074

543,855

546,611

1,089,436

1,080,977

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

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

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

For the six months ended
September 30, 2016

Operating revenue

683,785

706,689

Operating cost

645,448

662,442

Operating gross profit

38,33744,247

Selling, general and administrative expenses

20,33623,303Operating income

18,00020,943Non-operating income
Interest income

5476

Dividend income

432

457

Other

676

578

Total non-operating income

1,163

1,113

Interest expenses

251

294

Share of loss of entities accounted for using equity method—

237

Foreign exchange losses

113

313

Other

172

295

Total non-operating expenses

537

1,140

18,627

20,916

Gain on sales of non-current assets

32

154

Gain on sales of investment securities

2273

Total extraordinary income

54

228

Loss on retirement of non-current assets

89

81

Disaster recovery expenses for the Kumamoto Earthquake

—

865

Other

0

3

Total extraordinary loss

89

950

Profit before income taxes

18,592

20,193

Income taxes

8,707

8,514

Profit9,884

11,679Profit attributable to non-controlling interests

125

124

Profit attributable to owners of parent

9,759

11,554Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

- 11 -

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

For the six months ended
September 30, 2016

9,884

11,679(2,114)(1,198)Foreign currency translation adjustment(73)(3,067)

Remeasurements of defined benefit plans, net of tax

266

1,373

Share of other comprehensive income of entities accounted
for using equity method—

0(1,920)(2,892)

7,964

8,787

Comprehensive income attributable to owners of parent

7,822

8,694

Comprehensive income attributable to non-controllinginterests

142

93

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income(Breakdown)- 12 -

(3) Consolidated statement of cash flows(Millions of yen)
For the six months ended
September 30, 2015

For the six months ended
September 30, 2016

Cash flows from operating activities
Profit before income taxes

18,592

20,193

Depreciation

21,675

20,835

Increase (decrease) in net defined benefit liability

1,326

1,133

Increase (decrease) in provision for bonuses

6,371

6,929

Decrease (increase) in notes and accounts receivable trade

2,033

1,453

Increase (decrease) in notes and accounts payable - trade(25,079)(8,505)

Other, net(20,158)

2,715

Subtotal

4,761

44,754

Interest and dividend income received

479

513

Interest expenses paid

(399)

(401)

Income taxes paid

(19,171)(19,255)

Net cash provided by (used in) operating activities(14,330)

25,611

Cash flows from investing activities
Purchase of property, plant and equipment(17,409)(18,133)

Proceeds from sales of property, plant and equipment

746

957

Purchase of investment securities(775)(16,476)

28

390

(545)

(516)

Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other payments
Other proceeds

548

533

(7,425)(6,151)

1,747

697

(23,085)(38,699)

Net increase (decrease) in short-term loans payable

4,187(2,936)

Repayments of finance lease obligations(1,708)(1,493)

Proceeds from long-term loans payable

16,671

18,687

Repayment of long-term loans payable(4,764)(17,812)Purchase of treasury shares(20,005)(0)Cash dividends paid

(5,372)(5,974)

Other, net

(870)

(43)

(11,862)(9,572)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(110)(2,834)

Net increase (decrease) in cash and cash equivalents(49,388)(25,495)

Cash and cash equivalents at beginning of period

247,051

249,261

213—

197,875

223,766

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period- 13 -

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

Home
Convenience

e-Business

Financial

533,51954,544

23,312

20,932

34,77632,409

6,077

7,936

14,524

1,685

565,928
4,167

60,622
2,628

31,249154

35,4563,871

36,462
4,232

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
12,785
3,914
683,785—
683,785(2) Inter-segment operating revenue or
14,05337,371
114,058(114,058)—
transfers
Total
26,83841,286
797,844(114,058)
683,785
Segment income
2,030
25,61942,703(24,702)
18,000Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment income is 24,889 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 14 -

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

554,849

BIZ-Logistics

Home
Convenience

e-Business

Financial

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)

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 income (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 income is 34,409 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.
5. Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution on a Change in Depreciation
Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) from the first quarter ended June 30, 2016, and changed
the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016 from thedeclining-balance method to the straight-line method.
In addition, the effect of this application on segment income for the six months ended September 30, 2016 is immaterial.

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

- 15 -

4. Supplementary Information
Operating revenue by business
For the six months
For the six months
Fiscal year ended
ended September 30, 2015 ended September 30, 2016 Change
March 31, 2016
Business segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
481,94470.5
504,13471.3
4.6
1,004,969
71.0
Kuroneko DM-Bin
43,735
6.4
42,3046.0(3.3)
87,545
6.2
Express
20,881
3.0
20,8963.0
0.1
42,8003.0
Delivery
Others
44,8896.6
46,8096.6
4.3
94,837
6.7
Eliminations(57,931)(8.5)(59,293)(8.4)
2.4(118,277)
(8.4)
Total
533,51978.0
554,84978.5
4.0
1,111,875
78.5
Trading logistics service
19,8072.9
16,4482.3(17.0)
38,806
2.7
Sales and Logistics
17,403
2.5
19,2952.8
10.9
36,243
2.5
Multi maintenance
7,914
1.2
6,349
0.9
(19.8)
15,4901.1
BIZ-Logistics Products Logistics *1
2,145
0.3
2,152
0.3
0.4
4,297
0.3
Others21,841
3.2
21,7933.1(0.2)
42,246
3.0
Eliminations(14,568)(2.1)(14,076)
(2.0)
(3.4)
(30,262)
(2.1)
Total
54,5448.0
51,9637.4(4.7)
106,822
7.5
Home convenience
20,4843.0
20,2682.8(1.1)
42,1083.0
Business convenience
8,557
1.3
8,481
1.2
(0.9)
17,773
1.3
HomeTechnical
Network
2,220
0.3
1,865
0.3
(16.0)
4,408
0.3
Convenience
Eliminations(7,949)(1.2)(7,141)(1.0)(10.2)(15,308)
(1.1)
Total
23,312
3.4
23,4743.3
0.7
48,9813.5
e-logistics solution
4,899
0.7
5,615
0.8
14.6
10,2750.7
Credit card solution
4,663
0.7
4,689
0.7
0.6
9,441
0.7
IT operating solution
3,028
0.4
3,205
0.4
5.8
6,413
0.5
Web-based mail ordere-Business
2,797
0.4
2,688
0.4
(3.9)
5,850
0.4
solution
Others
22,415
3.3
26,5903.8
18.6
46,580
3.3
Eliminations(16,872)(2.5)(20,945)(3.0)
24.1(35,204)
(2.5)
Total
20,932
3.0
21,8433.1
4.4
43,357
3.1
Payment *2
18,027
2.6
18,0162.5(0.1)
37,617
2.6
Lease
15,4592.3
17,501
2.5
13.2
32,054
2.3
Credit & Finance
1,747
0.3
1,819
0.3
4.1
3,424
0.2
Financial
Others
1,269
0.2
1,811
0.2
42.7
2,777
0.2
Eliminations(1,726)(0.3)(1,541)(0.2)(10.7)(3,427)(0.2)
Total
34,776
5.1
37,6075.3
8.1
72,446
5.1
Truck solution
24,346
3.6
23,9343.4(1.7)
47,232
3.3
Others
3,663
0.5
3,649
0.5
(0.4)
7,227
0.5
Autoworks
Eliminations(15,225)(2.2)(15,179)
(2.1)
(0.3)
(30,001)
(2.1)
Total
12,785
1.9
12,4051.8(3.0)
24,458
1.7
JITBOX Charter service
3,515
0.5
4,172
0.6
18.7
7,524
0.5
Others38,9705.7
49,6557.0
27.4
52,565
3.7
Other
Eliminations(38,571)(5.6)(49,282)(7.0)
27.8(51,620)
(3.6)
Total
3,914
0.6
4,545
0.6
16.1
8,470
0.6
Total
683,785100.0
706,689
100.0
3.3
1,416,413
100.0*1. Effective from the first quarter of the fiscal year ending March 31, 2017, the name of the Export Factory category in the BIZ-Logistics
segment has been changed to the Products Logistics.
*2. Effective from the first quarter of the fiscal year ending March 31, 2017, the name of the TA-Q-BIN Collect category in the Financial
segment has been changed to the Payment.

- 16 -