Translation
July 31, 2014

Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2015
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Makoto Kigawa, President
Kenichi Shibasaki, Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
August 11, 2014
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the first quarter of fiscal year 2015
(cumulative: from April 1, 2014 to June 30, 2014)(1) Consolidated operating results

For the three months ended
June 30, 2014
June 30, 2013
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Ordinary income
Net income
Operating revenue
Operating income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
323,968
3.0
4,933(46.0)
5,370(42.9)
2,243(53.0)
314,551
5.3
9,136
77.4
9,412
65.8
4,772
114.3
For the three months ended June 30, 2014: 2,588 million yen ((61.4)%)
For the three months ended June 30, 2013: 6,707 million yen (311.5%)
Net income per share

For the three months ended
June 30, 2014
June 30, 2013

Yen
5.36
11.26

Net income pershare - fully diluted
Yen
5.22
10.98

(2) Consolidated financial position
As ofJune 30, 2014
March 31, 2014
(Reference) Equity:2.

Total assets
Millions of yen
1,018,558
1,032,134
As of June 30, 2014: 544,857 million yen

Net assets
Equity ratio
Millions of yen%
553,55353.5
560,172
53.4
As of March 31, 2014: 551,379 million yen

Dividends
First quarter

Second quarter
Yen
Yen
Fiscal 2014—
12.00
Fiscal 2015——
Fiscal 2015 (Forecast)—
12.00(Note) Revisions to the forecasts most recently announced: None

Annual dividends
Third quarter
Yen
—
—
—

Fiscal year-end
Yen
12.00
—
12.00

Total
Yen
24.00
—
24.00

3.

Consolidated earnings forecasts for fiscal year 2015 (from April 1, 2014 to March 31, 2015)
Operating revenue

Operating income

Millions of yen%
Millions of yen%
Half year
688,000
4.9
21,000 (10.1)
Full year
1,437,000
4.5
70,00010.9(Note) Revisions to the forecasts most recently announced: None

(Percentages indicate year-on-year changes.)
Net income
Ordinary income
Net income
per share
Millions of yen%
Millions of yen%
Yen
21,500 (10.1)
11,500(7.1)
27.45
71,0009.8
41,00017.9
97.87* Notes(1) Changes in significant subsidiaries during the three months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (1) 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:Yesc. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (2) Changes in accounting policies, changes in accounting
estimates, and restatement” of the attached materials to the quarterly financial results report on page 7.

(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of June 30, 2014
454,684,992 shares
As of March 31, 2014
454,684,992 sharesb. Number of treasury shares as of the end of the period
As of June 30, 2014
35,742,575 shares
As of March 31, 2014
35,742,057 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2014
418,942,670 shares
For the three months ended June 30, 2013
423,713,506 shares*Indication regarding execution of quarterly review procedures
At the time of the disclosure of this quarterly financial results report, the quarterly review procedures in accordance with the Financial
Instruments and Exchange Act are in progress.

*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons.
For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts
for the Three Months, (3) Qualitative information on consolidated earnings forecasts” of the attached materials to the quarterly financial
results report on page 6.
• The Company plans to post supplementary materials on quarterly financial results on the Company’s website promptly after theannouncement of the quarterly financial results.

Attached Materials
Index

1. Qualitative Information on Settlement of Accounts for the Three Months................................................................. 2(1) Qualitative information on consolidated operating results ................................................................................. 2(2) Qualitative information on consolidated financial position ................................................................................. 6(3) Qualitative information on consolidated earnings forecasts .............................................................................. 6
2. Matters Regarding Summary Information (Notes) .................................................................................................... 7(1) Application of specific accounting for preparing the quarterly consolidated financial statements ...................... 7(2) Changes in accounting policies, changes in accounting estimates, and restatement ....................................... 7
3. Consolidated Financial Statements .......................................................................................................................... 8(1) Consolidated balance sheet .............................................................................................................................. 8(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 10
Consolidated statement of income (cumulative) ............................................................................................. 10
Consolidated statement of comprehensive income (cumulative) .................................................................... 11(3) Notes to consolidated financial statements ..................................................................................................... 12(Notes to premise of going concern) ............................................................................................................... 12(Segment information, etc.) ............................................................................................................................. 12(Notes on significant changes in the amount of shareholders’ equity) ............................................................ 13
4. Supplementary Information .................................................................................................................................... 14
Operating revenue by business ................................................................................................................................ 14-1-

1. Qualitative Information on Settlement of Accounts for the Three Months(1) Qualitative information on consolidated operating results
During the three months ended June 30, 2014, the business environment was marked by clear concerns ofstagnating consumer spending evidenced in part by a pull-back from the last-minute demand that had taken
hold ahead of the consumption tax hike, despite a visible trend of business recovery with an upturn in corporate
earnings and improvements in wage levels. Meanwhile, the shortage of labor became more apparent, thereby
giving rise to the realization that increasing costs brought about by a tightening labor market poses a major
managerial challenge in the transportation industry. Operating in this environment, we worked toward achieving
the objectives of the Long-Term Management Plan “DAN-TOTSU Management Plan 2019” and theMedium-Term Management Plan “DAN-TOTSU Three-Year Plan STEP.” To that end, we focused our efforts on
taking steps to create a business model for generating a high level of added value while pursuing greater
sophistication of our existing businesses, by fusing logistics networks that have been developed by the YamatoGroup and business resources of individual Group companies.
In the Delivery Business, revenues increased due to progress made with initiatives to ensure receipt ofadequate fees, but earnings decreased as a consequence of increased costs for systemic improvements totransport and delivery services for the purpose of uphold quality.
In the non-delivery businesses, drawing on alliances with respective Group companies, we continued toaggressively pursue solution sales geared toward solving customer’s business challenges, and began offering
new services in multiple businesses including the BIZ-Logistics and e-Business segments.
Our consolidated financial results for the three months ended June 30, 2014 are as follows.
(Millions of yen)
Item
Operating revenue
Operating income
Ordinary income
Net income

For the three months
ended June 30, 2013
314,551
9,136
9,412
4,772

For the three months
ended June 30, 2014
323,968
4,933
5,370
2,243

Change9,417(4,203)(4,041)(2,528)Growth (%)
3.0(46.0)(42.9)(53.0)

Initiatives for the entire Yamato Group
a.

b.

c.

The Yamato Group has been pursuing its “Value Networking” design which creates business models
geared toward generating a high level of added value by bringing together respective businesses of theentire Group, and we are also taking steps to forge a robust corporate culture that acts as a foundation forbusiness creation and development.
Initiatives taken with respect to our strategy for pursuing the “Value Networking” design involved efforts tofurther expand our networks so that we can meet demand for borderless logistics operations in the Asian
region where growth is expected to continue on into the future. Moving ahead, we will address various
customer needs in Japan and overseas through initiatives that include expanding “International Cool
TA-Q-BIN” services, with deliveries from Japan to Singapore and Taiwan, drawing on our networks that run
through our Okinawa International Logistics Hub centrally situated in East Asia.
To forge a robust corporate culture, we focused on improving transport systems and developing new
vehicles, and worked to build systems for ensuring that we honor the promises we make to our customers.
At the same time, we worked on developing an operational framework designed to boost confidence of ourcustomers, through initiatives designed to bring about operational transparency by, for instance,
strengthening our IT infrastructure with the aim of bringing about more efficient and rational operations
than ever before. Moreover, we actively engaged in CSR-related activities linked to Yamato Groupbusiness endeavors, such as through environmental and safety measures, and efforts to energize
communities.

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Summary of each operating segment

 Delivery
The delivery volumes of TA-Q-BIN and Kuroneko Mail services are as follows.
Category
TA-Q-BIN
Kuroneko Mail

a.
b.

c.

d.

e.

For the three months
ended June 30, 2013
374
538

For the three months
ended June 30, 2014
374
489

(Million parcels / units)
ChangeGrowth (%)
(0)
(48)

(0.0)
(9.1)

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.
We worked to expand our services with respect to individual customers by offering greater customer
convenience and promoting use of such services. For instance, Yamato Transport launched its own“Kuroneko Member Discount” service which provides customers of the “Kuroneko Members” service
access to TA-Q-BIN discount pricing.
With respect to corporate clients, we expanded business that draws on Group company alliances involving
TA-Q-BIN deliveries while providing various forms of added value. We also undertook initiatives forcollecting fees appropriate to the task of providing consistent quality with respect to TA-Q-BIN deliveries.
In addition, the Yamato Group actively developed its “building and town management services” whichcentralize pickup and delivery within large commercial facilities and large multi-function complexes,
thereby enabling us to generate new orders for business involving such commercial facilities and large
multi-function complexes primarily in the Tokyo metropolitan area, as well as in various regions nationwide.
In regard to upholding “Cool TA-Q-BIN” quality, we have been taking steps to provide standards of qualitythat bring forth confidence and peace of mind, such as by actively adding to our fleet of new-model
vehicles and bringing in specialized equipment to boost operational efficiency, while at the same time
adopting IT-based comprehensive delivery processing systems.
Operating revenue amounted to 253,804 million yen, up 1.5% from the year-ago period as a result ofactive efforts with initiatives to ensure receipt of adequate fees. In terms of operating income, an operating
loss of 2,165 million yen was posted, a ¥5,359 million earnings decline from the year-ago period, due toincreased costs for systemic improvements to transport and delivery services for the purpose of upholding
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 international transportation
functions and logistics functions.
The Yamato Group provides a variety of solutions targeting clients who depend on internationaltransportation, including air and sea transportation services, small-lot international intermodaltransportation services that are interlinked with our TA-Q-BIN network, as well as a packaging andcustoms services. During the three months ended June 30, 2014, we engaged in efforts to address
diverse customer needs, such as through sales involving our “Yamato China Direct” shipping service fordelivering online shopping products from Japan to consumers in China.
With respect to our electric appliance repair operations and other such services, we have been developing
integrated service offerings where we handle collection, repairs and returns of faulty products. In the threemonths ended June 30, 2014, we achieved steady growth in customer use of our integrated repair
services, drawing on locations such as the “Haneda Chronogate” logistics facility which launched
operations in September 2013 and now stands as the Yamato Group’s largest logistics facility.
Operating revenue amounted to 23,359 million yen, up 9.1% from the year-ago period mainly due to firm
results with mail-order services and services involving product repairs. Operating income was 1,134 million
yen, up 18.1% from the year-ago period.

-3- Home Convenience
a.
b.

c.

d.

In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
With respect to individual customers, the Yamato Group operated a variety of services to assist in daily life
such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances and moving-related services. In the three months ended June 30, 2014, we have beendeveloping services such as our “Comfortable Lifestyle Support Service” which helps solve everyday
inconveniences involving house cleaning and collection of unwanted items, as well as our traveling sales
services where we offer furniture and household electrical appliances to customers in remote areas.
With respect to services for corporate clients, we have been developing business support services geared
primarily toward companies, involving office relocation services, event support services and other suchofferings. In the three months ended June 30, 2014, we actively engaged in sales activities whereby
Yamato Group and our construction and installation contractors combined networks thereby enabling us tolaunch new one-stop services where we handle everything from delivery, set-up, installation andmaintenance of household equipment. Moreover, we are now able to provide sales support to mail-orderbusinesses by offering greater convenience to those receiving deliveries through supplementary services
that include changing room layouts as necessary to accommodate mail order products when delivered.
Operating revenue amounted to 12,691 million yen, up 9.1% from the year-ago period partially as a resultof efforts to aggressively expand new businesses. With respect to profits, the segment curbed its operating
loss, which at a loss of 111 million yen, was an improvement of 263 million yen compared to the same
period in the previous fiscal year as a result of factors such as thorough management of personnel-related
expenses and improved operational productivity.

 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 proposing solutions that combine logistics technology and financial
technology with information technology.
With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the three months ended
June 30, 2014, use of this service increased, particularly among clients in the mail-order market.
The Yamato Group has been developing services for customers whose needs involve managing products
on an individual basis, such that combine inventory tracking and other information-related services withpartial processing of merchandise and logistics services. In the three months ended June 30, 2014,
revenues increased steadily as customer use of telecommunications equipment-related services
increased.
Operating revenue amounted to 9,735 million yen, up 3.5% from the year-ago period, due to an increasein new business and growing sales to existing customers. Operating income was 1,641 million yen, up
7.0% 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 on mail-order product deliveries, B2B
transaction settlement, and vehicle leasing.
With respect to payment settlement services for individual customers, in addition to providing our mainstay
product “TA-Q-BIN Collect,” we also promoted increased customer use of both our “Kuroneko Web
Collect” comprehensive internet-based transaction settlement service and our e-money settlement
services provided in conjunction with our e-Business operations. In the three months ended June 30, 2014,
we actively developed the “Kuroneko Web Collect” business and expanded service offerings such as
those involving rental of e-money settlement terminals for use at venues such as product sales booths set
up at event venues.

-4-

c.

d.

In the lease services business, there was significant growth in numbers of contracts amid efforts topropose options centered on customer’s viewpoints, on the basis of extensive assessments of customer
needs particularly with respect to leases of previously-owned cars. Moreover, premised on the condition ofvehicle re-use after lease expiration, we accepted “three-year operating lease” applications for quality
vehicles from a broad customer base that includes companies in the transportation businesses and foodbusinesses.
Operating revenue amounted to 15,693 million yen, up 6.6% from the year-ago period, mainly owing to anincrease in contracts for pre-owned vehicle leases in the lease services business. Meanwhile, operating
income was 2,128 million yen, down 4.0% from the year-ago period due to a downturn in the “TA-Q-BIN
Collect” business, given factors such as the pull-back from the last-minute demand that emerged ahead of
the consumption tax hike.

 Autoworks
a.

c.
d.

In the Autoworks Business, the Yamato Group promotes 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 primarily in the form of “vehicle maintenanceconvenience,” “ensuring compliance with statutory vehicle inspections,” and “reduced maintenanceexpenses.” Furthermore, to better provide one-stop service solutions geared toward customer business
operations, we have added services for “maintaining and safeguarding logistics facilities and equipment”
along with “insurance agency services where we offer insurance plans tailored to customer needs.”
In the three months ended June 30, 2014, the Yamato Group steadily increased the number of vehicles
serviced as a result of the increased use of the “12-Month Fixed-Price Maintenance Package,” whichevens out the monthly vehicle maintenance expenses.
Operating revenue amounted to 6,960 million yen, up 14.5% from the year-ago period due to an increasein the number of vehicles serviced. Operating income was 1,132 million yen, up 18.3% from the year-ago
period in part due to thorough management of personnel-related expenses.

 Othera.

b.

The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
Group network consisting of multiple companies and provides value to customers through timely delivery
and frequent, right-volume delivery. In the three months ended June 30, 2014, we launched new transport
services offering there-and-back and multiple-venue deliveries, thereby resulting in more use of the
JITBOX Charter service among customers such as those taking part in a series of events in a number ofdifferent locations.
Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 11.6% from the year-ago period to 180 million yen.

CSR Initiativesa.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the three months ended June 30, 2014, the Group promoted various initiatives such as
conducting the “Zero Accident Campaign” which is a safety campaign deployed horizontally throughout theentire group including our TA-Q-BIN operators overseas, and we provided employee education programs
using vehicles equipped with systems that facilitate safe driving practices. In addition, a total of more than
2.40 million people have now participated in the “Safety Classes for Children” that the Group has
continuously conducted in day-care facilities, kindergartens and elementary schools across Japan.

b.

The Yamato Group has formulated “Nekology” (combining “Kuroneko” with “ecology”), which is anenvironmental protection philosophy and guideline for environmental activities for the entire Group, and istaking the initiative to proactively promote environmental protection activities. During the three months
ended June 30, 2014, Yamato Transport Co., Ltd. received the 15th Logistics Environment Award inrecognition of its environmental protection initiatives at “Haneda Chronogate” and various other activities
based on our “Nekology” philosophy.
In April 2014, the Yamato Group became a signatory to the UN Global Compact, a worldwide initiative
involving the United Nations and businesses with the aim of enabling sustainable growth. The initiative

c.

-5-

d.

e.

promotes universal principals for contributing to sustainable social development by asking companies toembrace such universal principles with respect to “human rights, labor, environment, and anti-corruption”
in the course of conducting business.
Aspiring to be a company that has a strong bond of trust with the local community, the Yamato Group
promotes various activities to help realize a society in which disabled people can freely enjoy a lifestyle asa member of the workforce. For example, led by Yamato Welfare Foundation, we actively employ disabled
people in the Swan Bakery that makes and sells bread, provide workplaces through the consigned deliveryof Kuroneko Mail, and operate job-finding support facilities that conduct training of 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).” In the three months ended June 30, 2014,
continuing on from the prior fiscal term, the Yamato Group worked in collaboration with government bodies
on 630 separate occasions with respect to keeping a protective eye on elderly citizens, lending support tothe tourism industry, and other such initiatives taken in the course of providing services that draw on theGroup’s managerial resources.

(2) Qualitative information on consolidated financial position
Total assets were 1,018,558 million yen as of June 30, 2014, down 13,575 million yen from the end of theprevious fiscal year. The major factor in this was a decrease of 8,200 million yen in notes and accounts
receivable - trade.
Liabilities decreased 6,957 million yen to 465,004 million yen from the end of the previous fiscal year. The
major factors in this were an increase in loans payable of 7,297 million yen while income taxes payable
decreased 17,015 million yen due to the payment of income taxes.
Total net assets were 553,553 million yen, down 6,618 million yen from the end of the previous fiscal year. The
major factors included the recording of net income of 2,243 million yen, and the dividends of surplus of 5,027
million yen, in addition to a decrease in retained earnings of 6,863 million yen due to a 4,080 million yen
decrease of retained earnings as of the beginning of the first quarter under review in line with the application of
Accounting Standard for Retirement Benefits and its Guidance.
Accordingly, the equity ratio changed to 53.5% from the previous fiscal year’s 53.4%.
(3) Qualitative information on consolidated earnings forecasts
Looking ahead at the economy, we expect the pull-back in earlier demand that emerged ahead of theconsumption tax hike to become less pronounced, along with improvements in corporate earnings and a
gradual recovery in consumer spending. However, the economic outlook will most likely remain uncertain due inpart to a tightening supply of labor and downside risk from factors such as surging labor costs.
In this environment, the Yamato Group will work to increase delivery volumes in the Delivery Business by
redoubling efforts to offer customer greater convenience and better service quality, while also addressing
initiatives to ensure receipt of adequate TA-Q-BIN fees. In the non-delivery businesses, we will expand therevenue base through ongoing reinforcement of solution sales.
On the cost front, the Group will persist with efforts that involve allocating adequate numbers of personnel inline with operating volumes and pursuing initiatives to increase productivity, while also keeping costs undercontrol with the aim of ensuring positive operating income results.
The Yamato Group has not made any changes to the consolidated earnings forecasts for the half year and forthe full year of the fiscal year ending March 31, 2015 since the announcement made on April 30, 2014.

-6-

2. Matters Regarding Summary Information (Notes)(1) Application of specific accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the income before income taxes by the reasonably estimatedeffective tax rates after the application of tax effect accounting to the income before income taxes for the fiscal
year including the first quarter under review.
(2) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies(Application of “Accounting Standard for Retirement Benefits” and Its Guidance)
Effective from the first quarter under review, for the “Accounting Standard for Retirement Benefits” (ASBJ
Statement No. 26, May 17, 2012) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, May 17, 2012), the Company has additionally applied the provisions set forth in the mainclauses of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidanceon Accounting Standard for Retirement Benefits.
Due to this, the Company reviewed the calculation method of retirement benefit obligations and current service
costs and amended the determination of discount rate from one that based on the period of years approximate
to the expected average remaining working lives of employees to one that uses a single weighted average
discount rate reflecting the estimated timing and amount of benefit payment.
Application of the Accounting Standard for Retirement Benefits and its Guidance is in line with the transitional
measures provided in Paragraph 37 of the Accounting Standard for Retirement Benefits. In accordance withsuch measures, the effect of the review in the determination of retirement benefit obligations and current
service costs has been added to or deducted from retained earnings as of the beginning of the first quarter
under review.
As a result of this change, as of the beginning of the first quarter under review, net defined benefit liability
increased 6,262 million yen, deferred tax assets increased 2,214 million yen, and retained earnings decreased
4,080 million yen. In addition, the effect of this application on operating income, ordinary income, and income
before income taxes and minority interests for the three months ended June 30, 2014 is immaterial.
(Application of “Accounting Standard for Business Combinations,” etc.)
Effective from the beginning of the fiscal year starting on or after April 1, 2014, it has become possible to apply
the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013),“Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), etc. Accordingly,
the Company has applied these accounting standards (except for the provisions of Paragraph 39 of the
Accounting Standard for Consolidated Financial Statements) effective from the first quarter under review. As aresult, the method of recording the amount of difference caused by changes in the Company’s ownershipinterests in subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one
in which it is recorded as capital surplus, and the method of recording acquisition-related costs was changed to
one in which they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, forbusiness combinations carried out on or after April 1, 2014, the accounting method was changed to one inwhich the reviewed acquisition cost allocation resulting from the finalization of the tentative accounting
treatment is reflected in the quarterly consolidated financial statements for the quarterly period in which thebusiness combination occurs.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional measuresprovided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of
the Accounting Standard for Consolidated Financial Statements and Paragraph 57-4 (4) of the AccountingStandard for Business Divestitures. Application of the standard commenced as of the beginning of the firstquarter under review, and will continue going forward.
Application of the accounting standard, etc. does not have a material impact on the quarterly consolidated
financial statements.

-7-3. Consolidated Financial Statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2014

As of June 30, 2014

AssetsCurrent assets
Cash and deposits

220,147

202,265

Notes and accounts receivable - trade188,144

179,944

Accounts receivable - installment

39,48040,947

Lease investment assets

35,32837,189Merchandise and finished goods

780

853

Work in process

234

353

Raw materials and supplies

2,222

2,024

Other

42,611

48,768

Allowance for doubtful accounts(1,591)(1,448)

Total current assets

527,359

510,898

329,288329,872

Accumulated depreciation(174,246)(176,584)

Buildings and structures, net

155,042

153,288

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

VehiclesAccumulated depreciation
Vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net

187,881

190,542(171,770)(172,738)

16,11017,803

188,343

188,357

23,94424,053(15,201)(16,103)

8,742

7,950

140,979

140,623(92,090)(91,040)

48,88849,582

417,127

416,982

17,51817,489Investment securities

26,11927,058Other

45,35847,469Allowance for doubtful accounts(1,350)(1,340)Total investments and other assets

70,12873,187504,774

507,660

1,032,134

1,018,558

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

Total non-current assets
Total assets-8-

(Millions of yen)
As of March 31, 2014

As of June 30, 2014

Liabilities
Current liabilities
Notes and accounts payable - trade

172,463

141,403

Short-term loans payable

36,411

43,787

Lease obligations

4,784

4,427

Income taxes payable

20,907

3,892

Deferred installment income

5,349

5,411

Provision for bonuses

29,515

12,161

Other

77,927122,118

Total current liabilities

347,360

333,203

Bonds with subscription rights to shares

20,00020,000Long-term loans payable

42,26642,188

Lease obligations

4,379

4,328

Net defined benefit liability

47,22454,353

Other

10,731

10,930Total non-current liabilities

124,601

131,801

471,961

465,004

Capital stock

127,234

127,234

Capital surplus

100,863

100,863

Retained earnings

371,965

365,101

Treasury shares(56,079)(56,080)

Total shareholders’ equity

543,984

537,119

8,769

9,280

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

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

342

112

Remeasurements of defined benefit plans(1,717)(1,653)

Total accumulated other comprehensive income

7,395

7,738

Minority interests

8,792

8,695

Total net assets

560,172

553,553

1,032,134

1,018,558

Total liabilities and net assets-9-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the three months ended
June 30, 2013

For the three months ended
June 30, 2014

Operating revenue

314,551

323,968

Operating cost

296,918

310,239

Operating gross profit

17,632

13,729Selling, general and administrative expenses

8,495

8,796

Operating income

9,136

4,933

Non-operating income
Interest income

15

16

Dividend income

249

281

Other

346

408

Total non-operating income

611

705

Interest expenses

112

88

Settlement package

113

—

Other

109

179

Total non-operating expenses

336

268

9,412

5,370

Gain on sales of non-current assets

01Compensation for damage received—

257

Total extraordinary income

0258

Loss on retirement of non-current assets

83

43

Loss on valuation of investment securities

3—

Loss on litigation

—

598

Other

3

—

Total extraordinary losses

90

641

Income before income taxes and minority interests

9,322

4,988

Income taxes

4,627

2,815

Income before minority interests

4,694

2,172

Minority interests in income (loss)

(78)

(71)

4,772

2,243

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Net income- 10 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the three months ended
June 30, 2013

For the three months ended
June 30, 2014

4,694

2,172

Valuation difference on available-for-sale securities

1,539

582

Foreign currency translation adjustment

473

(230)

Income before minority interests
Other comprehensive income

Remeasurements of defined benefit plans, net of tax

—

64

2,013

416

6,707

2,588

Comprehensive income attributable to owners of parent

6,589

2,587

Comprehensive income attributable to minority interests

118

1

Total other comprehensive income
Comprehensive income(Breakdown)- 11 -

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Segment information, etc.)[Segment information]
Information regarding the amounts of operating revenue and income or loss by reportable segment
For the three months ended June 30, 2013

(Millions of yen)

BIZ-Logistics

Home
Convenience

e-Business

Financial

249,937

21,415

11,6369,410

14,726

14,406

2,808

3,079

6,172

942

264,343
3,194

24,223960

14,716(375)

15,582
1,534

15,6692,215

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
6,081
1,344
314,551—
314,551(2) Inter-segment operating revenue or
7,015
33,161
67,586(67,586)—transfers
Total
13,09634,506382,138(67,586)
314,551
Segment income (loss)
957
24,41532,902(23,765)
9,136
Notes: 1. Other includes business-to-business distribution via JITBOX Charter, staffing services 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 24,104 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 12 -

For the three months ended June 30, 2014
Delivery(Note 1)
Operating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment income (loss)(Millions of yen)
BIZ-Logistics

Home
Convenience

253,804

23,35912,691

9,735

15,693

15,292

2,879

3,075

6,667

834

269,096(2,165)26,2381,134

15,767(111)

16,402
1,641

16,5282,128

Reconciliation(Note 4)

Amountrecorded inconsolidated
statement ofincome(Note 5)

Autoworks

Other(Notes 2, 3)

Total

e-Business(Note 1)

Financial

Operating revenue(1) Operating revenue from customers
6,960
1,723
323,968—
323,968(2) Inter-segment operating revenue or
7,328
31,28367,360(67,360)—transfers
Total
14,28833,007391,329(67,360)
323,968
Segment income (loss)
1,132
22,356
26,115(21,182)
4,933
Notes: 1. Effective from the first quarter under review, Delivery Business segment includes the contact service business, previously includedin the e-Business, due to changes involving business segment categories made in accordance with actual circumstances related
to management and administration. The segment information for the three months ended June 30, 2013 has been prepared andpresented according to the new classification.
2. Other includes business-to-business distribution via JITBOX Charter, staffing services and shared services.
3. 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 21,910 million yen.
4. The adjustment of segment income resulted from eliminating transactions among segments.
5. We made an adjustment between segment income and operating income in the consolidated statement of income.
6. Effective from the first quarter under review, for the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May
17, 2012) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012), theCompany has additionally applied the provisions set forth in the main clauses of Paragraph 35 of the Accounting Standard for
Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits. Due to this, theCompany reviewed the calculation method of retirement benefit obligations and current service costs and amended thedetermination of discount rate from one that based on the period of years approximate to the expected average remaining working
lives of employees to one that uses a single weighted average discount rate reflecting the estimated timing and amount of benefit
payment.
In addition, the effect of this application on segment income/loss for the three months ended June 30, 2014 is immaterial.

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

- 13 -

4. Supplementary Information
Operating revenue by business
Fiscal year ended
For the three months
For the three months
ended June 30, 2013
ended June 30, 2014
March 31, 2014
ChangeBusiness segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
68.2
220,68368.1
3.0
958,57369.7
214,338
Kuroneko Mail
10.4
30,0659.3(7.8)
126,035
9.2
32,598
Express
3.3
10,4953.2
0.1
45,047
3.3
10,486
Delivery
Others *1
4.8
16,643
5.1
9.7
68,023
4.9
15,167
Eliminations(7.2)(24,084)(7.4)
6.3(98,279)(7.1)(22,653)
Total
79.5
253,804
78.3
1.5
1,099,399
80.0
249,937
Trading logistics service
2.8
9,139
2.8
3.6
39,037
2.8
8,824
Sales and Logistics
7,364
2.3
8,455
2.6
14.8
31,103
2.3
Multi maintenance
2,363
0.8
3,808
1.2
61.2
9,870
0.7
BIZ-Logistics Export Factory
0.3
995
0.3
6.9
3,781
0.3
930
Others
2.9
9,238
2.9
1.9
36,311
2.7
9,067
Eliminations(2.3)(8,278)(2.6)
16.0(29,850)(2.2)(7,135)Total
6.8
23,3597.2
9.1
90,254
6.6
21,415Home convenience
10,6103.4
11,106
3.4
4.7
42,801
3.1
Business convenience
1.1
3,387
1.0
(2.8)
17,060
1.2
3,486
*2
Home
0.2
1,280
0.4
103.6
3,047
0.2
629
Convenience Technical network *2
Eliminations(1.0)(3,083)(0.9)(0.2)(14,186)(1.0)(3,089)
Total
3.7
12,691
3.9
9.1
48,723
3.5
11,636e-logistics solution
2,519
0.8
2,651
0.8
5.2
10,766
0.8
Credit card solution
1,899
0.6
1,981
0.6
4.3
7,890
0.6
IT operating solution *3
0.4
1,659
0.5
18.8
6,207
0.5
1,397
Web-based
mail
order
e-Business
0.5
1,372
0.4
(1.9)
6,071
0.4
1,398
solution *3
Others *1, 3
2.8
9,649
3.0
10.1
38,801
2.8
8,760
Eliminations(2.1)(7,578)(2.3)
15.4(28,905)(2.1)(6,565)
Total
3.0
9,735
3.0
3.5
40,831
3.0
9,410
TA-Q-BIN Collect
9,573
3.0
9,001
2.8
(6.0)
40,178
2.9
Lease
1.5
6,153
1.9
28.6
20,896
1.5
4,785
Credit & Finance
801
0.3
858
0.3
7.1
3,239
0.2
Financial
Others
0.2
533
0.2
0.7
2,061
0.2
530
Eliminations
(0.3)
(853)
(0.3)
(11.5)(3,647)
(0.3)
(964)
Total
4.7
15,693
4.9
6.6
62,727
4.5
14,726
Truck maintenance
12,0403.8
13,0624.0
8.5
49,651
3.6
Others
0.5
1,814
0.6
11.0
6,507
0.5
1,635
Autoworks
Eliminations(2.4)(7,917)(2.4)
4.2(30,508)(2.2)(7,595)
Total
1.9
6,960
2.2
14.5
25,650
1.9
6,081
JITBOX Charter service
0.3
1,251
0.4
32.1
4,677
0.3
947
Others10.9
32,50010.0(4.9)
64,434
4.7
34,171Other
Eliminations(10.8)(32,028)
(9.9)
(5.2)
(62,089)(4.5)(33,775)
Total
0.4
1,723
0.5
28.2
7,022
0.5
1,344
Total
100.0
323,968100.0
3.0
1,374,610
100.0
314,551
The notes below describe changes to business segment classifications effective from the first quarter under review, made in accordance withactual circumstances related to management and administration. The figures presented for the three months ended June 30, 2013, and for the
fiscal year ended March 31, 2014, have been restated in accordance with this change.
*1. The contact service business, previously included in the Others category of the e-Business, is now presented in the Others category of the
Delivery Business.
*2. In the Home Convenience Business, the Technical network, previously included in the Business convenience category, is now presented
separately in its own category.
*3. In the e-Business, the Telecommunications network, previously included in the Others category, is now presented in the IT operating
solution category; and the chain store solutions, previously included in the e-logistics solution category, is now presented in the Others
category.

- 14 -