Translation
May 1, 2018

Consolidated Financial Results for the Year Ended March 31, 2018
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Senior Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the ordinary general meeting of shareholders: June 28, 2018
Scheduled date of the commencement of dividend payment:
June 6, 2018
Scheduled date of the submission of annual securities report:
June 22, 2018
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Operating revenue

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

For the year ended Millions of yen% Millions of yen%
Millions of yen
March 31, 2018
1,538,813
4.9
35,685
2.3
36,085
March 31, 2017
1,466,852
3.6
34,885(49.1)
34,884(Note) Comprehensive income:For the year ended March 31, 2018: 22,772 million yen ((0.6)%)
For the year ended March 31, 2017: 22,916 million yen ((6.4) %)Basic earnings per
share

Diluted earnings
per share

Return on equity%
3.4(49.8)

Millions of yen
18,231
18,053

Ratio of ordinary
profit to total assets

For the year ended
Yen
Yen
%
March 31, 2018
46.24
—
3.3
March 31, 2017
45.37
—
3.4
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2018: (1,355) million yen
For the year ended March 31, 2017: (799) million yen

%
3.2
3.2

%
1.0
(54.2)

Ratio of operating
profit to operating
revenue%
2.3
2.4(2) Consolidated financial position
Total assets
As ofMarch 31, 2018
March 31, 2017
(Reference) Equity:

Net assets

Equity ratio

Millions of yen
Millions of yen%
1,115,433
557,586
49.3
1,114,672
545,559
48.4
As of March 31, 2018: 550,307 million yen
As of March 31, 2017: 539,179 million yen

Net assets per share
Yen
1,395.74
1,367.51(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2018
March 31, 2017

Millions of yen
51,72873,324

Cash flows frominvesting activities
Millions of yen(41,174)(73,999)-1-

Cash flows fromfinancing activities
Millions of yen(36,930)(18,777)

Cash and cash equivalents
at end of period
Millions of Yen
202,863
228,926

2.

Dividends
Annual dividendsFirstquarter

Fiscal 2017
Fiscal 2018
Fiscal 2019
(Forecast)3.

Secondquarter

Third
quarter

Fiscalyear-end

Total

Yen
—
—

Yen
13.00
13.00

Yen
—
—

Yen
14.00
14.00

Yen
27.00
27.00

—

14.00

—

14.00

28.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
10,70010,645

%
59.5
58.4

%
2.0
2.0

30.7

Consolidated earnings forecasts for fiscal year 2019 (from April 1, 2018 to March 31, 2019)
Operating revenue

Half year
Full year

Millions of yen
760,000
1,600,000

Operating profit
%
4.1
4.0

Millions of yen
8,000
58,000Ordinary profit
%
—
62.5

Millions of yen
8,000
58,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toearnings
owners of parent
per share%—
60.7

Millions of yen
4,000
36,000

%
—
97.5

Yen
10.15
91.31

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2018:
411,339,992 shares
As of March 31, 2017:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2018:
17,064,197 shares
As of March 31, 2017:
17,062,391 sharesc. Average number of shares during the period
For the year ended March 31, 2018:394,276,572 shares
For the year ended March 31, 2017:397,930,271 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per share information” onpage 28.

*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For
points to note when using such assumptions and financial projections, please see “1. Overview of Operating Results and Others, (4) Future
outlook” of the attached materials to the financial results report on page 10.
• The Company plans to hold a financial results meeting for analysts on May 2, 2018. The materials distributed at this financial results meetingshall be posted on the Company’s website after the meeting has been held.

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Attached Materials
Index
1. Overview of Operating Results and Others ............................................................................................................. 4(1) Overview of operating results for fiscal 2018..................................................................................................... 4(2) Overview of financial position for fiscal 2018..................................................................................................... 9(3) Overview of cash flows for fiscal 2018 ............................................................................................................ 10(4) Future outlook ................................................................................................................................................. 10(5) Operational and financial issues to be addressed ........................................................................................... 10
2. Fundamental Approach to Selection of Accounting Standards ............................................................................. 11
3. Consolidated Financial Statements and Significant Notes Thereto....................................................................... 12(1) Consolidated balance sheet ............................................................................................................................ 12(2) Consolidated statement of income and consolidated statement of comprehensive income............................ 15(3) Consolidated statement of changes in equity .................................................................................................. 18(4) Consolidated statement of cash flows ............................................................................................................. 20(5) Notes to consolidated financial statements ..................................................................................................... 22(Notes to premise of going concern) ..................................................................................................................... 22(Significant matters forming the basis of preparing the consolidated financial statements) .................................. 22(Consolidated balance sheet) ............................................................................................................................... 23(Segment information)........................................................................................................................................... 23(Per share information) ......................................................................................................................................... 28(Important subsequent matters) ............................................................................................................................ 28
4. Others ................................................................................................................................................................... 29
Operating revenue by business ............................................................................................................................ 29-3-

1. Overview of Operating Results and Others(1) Overview of operating results for fiscal 2018
In the fiscal year ended March 31, 2018, the economic environment was plagued by ongoing uncertainties
ahead due to factors that have included effects of political developments overseas, yet gradual economic
recovery held course amid underlying strengths in corporate earnings. Moreover, the logistics industry
continues to face a severe business environment partially due to tightening of the domestic labor market, whichis in addition to an upward trend with respect to small parcel volume partially due to expansion of the
e-commerce market brought about by rapidly changing styles of consumption.
Under such circumstances, the Yamato Group strived to enhance its management foundations in order tocontinue achieving sustainable growth and thereby enable the Group to keep providing high-quality services bydrawing up its “KAIKAKU 2019 for NEXT100” medium-term management plan, which while “reforming working
styles” is centered on management, focuses on reforms in the three areas of “structural reform in the Delivery
Business,” “reform of revenue and business structure geared to achieving discrete growth,” and “reform ofGroup management structure geared to achieving sustainable growth.”
In the Delivery Business, we promoted our “structural reforms in the Delivery Business” initiatives which involve“improving and developing the employee working environment,” “placing controls on total TA-Q-BIN volume,”“optimizing the entire TA-Q-BIN delivery network,” “boosting efficiency by enhancing the ‘last mile’ network,”and “revising TA-Q-BIN basic fees and respective service standards.” This also involved gaining understanding
and cooperation from many of our clients, particularly in terms of having made progress in negotiating review ofour rates with respect to our corporate clients, and adjusting shipping schedules per requests made to some of
our large-lot corporate clients. As a result, since the third quarter, our financial performance has remained onpath to recovery due to TA-Q-BIN delivery volume taking a downward turn and the TA-Q-BIN unit pricebeginning to rise due to our adequate pricing initiatives, despite increasing expenses incurred largely frompromoting our focus on “reforming working styles.”In the non-delivery businesses, results were firm since we took steps to expand our existing service offerings
by enlisting the strengths of Group companies, while also drawing on Group-wide ties as we aggressively
promoted solution sales geared toward addressing customers’ business challenges.
Our consolidated financial results for the fiscal year ended March 31, 2018 were as follows.
Item

Fiscal 2017

Fiscal 2018

(Millions of yen)
Growth (%)

ChangeOperating revenue

1,466,852

1,538,813

71,961

4.9

Operating profit

34,88535,685800

2.3

Ordinary profit

34,88436,085

1,201

3.4

Profit attributable toowners of parent

18,053

18,231178

1.0

As mentioned above, operating revenue amounted to 1,538,813 million yen, up 71,961 million yen from theyear-ago period. This is largely attributable to an increase in the TA-Q-BIN unit price due to our adequate
pricing initiatives, and despite a decrease in TA-Q-BIN delivery volume amid promotion of structural reforms in
the Delivery Business. Operating expenses amounted to 1,503,127 million yen, up 71,161 million yen from theyear-ago period. This is largely attributable to an increase in labor costs, including those of outsourcing
workforce, in conjunction with higher delivery volume until the first half of the fiscal year and initiatives toreduce employee workloads, and also attributable to increases in commission expenses and othersubcontracting expenses and personnel expenses amid progress made in employee recruitment. As a result,operating profit amounted to 35,685 million yen, up 800 million yen from the year-ago period partially due toeffects of a decrease in amounts recorded as payments for specially acknowledged working hours recognizedin the fiscal year ended March 31, 2017.
Initiatives for the entire Yamato Groupa. The Yamato Group has been taking steps on a Group-wide basis to develop an upbeat working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Reforming
Working Styles” established in Yamato Transport Co., Ltd., and its “Working Styles Innovation

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b.

c.

d.

e.

Committees” in its respective Group companies, as a means of placing utmost priority on “reforming
working styles” in order to practice “inclusive management,” a Yamato Group founding principle. Moreover,
we have been pursuing our “Value Networking” design, on the basis of creating business models forgenerating a high level of added value through the combined efforts of our respective businesses, while atthe same time contributing to growth strategies and international competitive strengths of the Japanese
economy. Meanwhile, we are also taking steps to forge a robust corporate culture that acts as afoundation for business creation and development.
We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we
worked on enhancing the efficiency and dependability of operations, in part by improving our transportsystems and by using our information technology network to enable visual monitoring of operating
volumes. Moreover, we actively engaged in CSR-related activities linked to Yamato Group businessendeavors, such as through environmental and safety measures, and efforts to prosper communities.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we will make more effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Atsugi Gateway,” “Chubu Gateway” and “Okinawa
International Logistics Hub” facilities, as well as “Kansai Gateway” facility, which started its operation in
November 2017, in addition to our existing “last mile” network.
In our business looking toward overseas markets, we have been working to forge collaboration among
five regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening ourcapabilities in each geographic region to respond to the growth of cross-border logistics. In the fiscal year
ended March 31, 2018, we signed a comprehensive partnership agreement with the leading specialist for
express parcel delivery in France. The agreement was entered into for the purpose of expanding ourcross-border small parcel chilled and frozen transport business between Japan and France, and contains
a cross license agreement for sharing both companies’ know-how with respect to small parcel chilled andfrozen transport. Furthermore, we have been promoting efforts to build cross-border networks that provide
substantial added value primarily focusing on our cold chain network with initiatives involving seven
Yamato Group companies acquiring certification under international standards pertaining to chilled andfrozen goods delivery services, including Vietnam where the Group started handling of Cool TA-Q-BIN
services in September 2017.
With the aim of improving customer convenience particularly in the e-commerce market, we have beenworking to establish an environment that ensures customers ease in picking up their parcels. Moreover, tothat end we have been actively promoting efforts to build an open-type network of parcel lockers primarily
in train stations, convenience stores and other such locations. Also, we continued to conduct practical trial
runs of our “RoboNeko Yamato” project which involves providing on-demand delivery services that makeuse of automated driving technologies and worked on other efforts for the development of next-generation
logistics services, and we have been picking up the pace with respect to utilizing cutting-edge
technologies geared to streamlining transportation, in part by adopting trailers with a new specification
never before used in Japan. Moreover, in October 2017, we installed Japan’s first automated fit-to-size
packing system at our Atsugi Gateway facility, and have otherwise been taking steps that involve
digitization and automation of our overall logistics operations in order to address challenges presented bysociety such as the labor shortage as it intensifies going forward, and in order to better serve the rapidly
expanding e-commerce market.

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

Fiscal 2017

Fiscal 2018

(Million parcels/units)
Growth (%)

ChangeTA-Q-BIN

1,867

1,836

(30)

(1.7)

Kuroneko DM-Bin

1,542

1,464

(77)

(5.0)

a.
b.

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
Amid a severe business environment partially due to tightening of the domestic labor market, which is inaddition to an upward trend with respect to small parcel volume partially due to expansion of the

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c.

d.

e.

f.

e-commerce market brought about by rapidly changing styles of consumption, we have promoted our“structural reforms in the Delivery Business” initiatives which involve “improving and developing theemployee working environment,” “placing controls on total TA-Q-BIN volume,” “optimizing the entire
TA-Q-BIN delivery network,” “boosting efficiency by enhancing the ‘last mile’ network,” and “revising
TA-Q-BIN basic fees and respective service standards.” With respect to our objective of “improving anddeveloping the employee working environment,” we have taken steps geared to ensuring that employees
are able to take lunch breaks while also preventing situations where they are subject to long working
hours. To that end, we set earlier deadlines for accepting TA-Q-BIN deliveries, and we changed to aframework of five designated time slots for TA-Q-BIN deliveries, from six time slots previously. In addition,
having revised our TA-Q-BIN basic fees in October 2017, we gained understanding and cooperation frommany of our clients particularly in terms of having made progress in negotiating review of our rates withrespect to our corporate clients, and adjusting shipping schedules per requests made to some of ourlarge-lot corporate clients. We continue engaging in such dialogue with corporate clients with whom
negotiations have been underway.
In the still growing e-commerce 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, and proceededwith offering a greater number of drop-off points for sending by collaborating with multiple flea market
websites. During the fiscal year ended March 31, 2018, we have been taking steps to provide greater
convenience to our customers. This has involved efforts such as collaborating with business operators
who provide open platforms for e-commerce companies, and offering a service environment where
customers who have purchased a product are able to specify either a business office of Yamato Transport
Co., Ltd., a convenience store or an open-type parcel locker (PUDO) as a location for pick-up. This has
also involved upgrading the “My Calendar” service of the “Kuroneko Members” service with theintroduction of a new feature that enables customers to specify pick-up locations, in addition to their
desired days of the week and time slots.
With respect to corporate clients, we have been accurately pinpointing managerial challenges andactively proposing solutions to address those challenges. Moreover, we have been working to boost
profitability by making proposals that provide high added value using the Group’s business resources.
During the fiscal year ended March 31, 2018, we have promoted the use of our new “B2 Cloud” shippinglabel issuance service which operates using a cloud-based platform. Moreover, we have been working toprovide new services that help e-commerce companies do business. For instance, we have beenreleasing to the public application programming interfaces (APIs) designed to facilitate convenient parcel
pick-up and delivery, available through our “Yamato Business Members” service for corporate clients.
In our business geared toward revitalizing communities, we have been taking steps to improve services
for residents by collaborating with numerous municipalities and companies in efforts to provide support
with regard to helping those who face difficulties doing their shopping and watching over elderly residents.
Moreover, we have also been helping to revitalize local industry through initiatives that include lending
support for enabling communities to achieve higher sales of locally produced products by offering swift
delivery to Asia of perishable goods and other agricultural products in a manner that ensures they stay
fresh.
The TA-Q-BIN unit price increased as a result of our having taken on adequate pricing initiatives thatinvolved revising TA-Q-BIN basic fees and negotiating review of our rates with respect to our corporateclients. As a result, operating revenue amounted to 1,201,745 million yen, up 4.4% from the year-ago
period. Operating profit has remained on a path to recovery from the third quarter onward amid increasing
expenses largely as a consequence of promoting our focus on “reforming working styles.” As a result,operating profit amounted to 6,758 million yen, up 19.9% from the year-ago period, for the fiscal year
ended March 31, 2018.

● BIZ-Logistics
a. In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions,maintenance and recall handling functions, cleansing functions for medical devices and internationaltransportation functions.
b. For the e-commerce industry and others, we are offering one-stop services for various types of logisticalsupport services in line with customer needs, including placing and accepting orders, visual monitoring of
inventories for customers and enabling speedier shipments. During the fiscal year ended March 31, 2018,

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c.

d.

these operations generated favorable results due to factors that included an increased volume of existing
services.
For medical service providers, we have been developing medical device loaner support (storage, cleaningand delivery) and other services that help revolutionize logistics operations. During the fiscal year ended
March 31, 2018, results were firm due to an increase in use of such services among newly gained
customers.
Operating revenue amounted to 121,939 million yen, up 12.2% from the year-ago period mainly due tofavorable results from existing services for e-commerce business operators, and progress made inoffering industry-specific solutions. Operating profit amounted to 4,087 million yen for the fiscal year
ended March 31, 2018, up 0.4% from the year-ago period.

● Home Conveniencea. In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
b. With respect to individual customers, the Yamato Group operated a variety of services to assist in daily
life such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances, moving-related services and “Comfortable Lifestyle Support Service” which aims to help
customers resolve everyday inconveniences “inside the home.” During the fiscal year ended March 31,
2018, we continued to take steps to achieve greater business volume with respect to our “Raku Raku
Household TA-Q-BIN” service that makes it easy for customers to send large packages by linking up withflea market website applications, and we also aggressively forged ahead with efforts to increase sales ofour “Comfortable Lifestyle Support Service.”c. For our corporate clients, we have been developing our business support services including “TechnicalNetwork Business” where we combine the networks of the Yamato Group and our construction andinstallation contractors so that we can provide one-stop support in handling everything from household
equipment delivery and set-up, to installation and maintenance of such equipment. During the fiscal year
ended March 31, 2018, we have steadily worked on receiving orders for office relocations.
d. Operating revenue amounted to 48,900 million yen, down 0.5% from the year-ago period mainly due tocontrols placed on workloads during the peak moving and relocation season as we promote our focus on“reforming working styles,” and despite favorable results with respect to use of our “Raku Raku
Household TA-Q-BIN” service and “Comfortable Lifestyle Support Service.” Operating profit amounted to
522 million yen for the fiscal year ended March 31, 2018, down 51.4% from the year-ago period.
● e-Businessa. In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively developing solution platform business that combine logistics technology
and financial technology with information technology. In addition, with the aim of helping to accelerate
growth of Yamato Group businesses, we have been moving beyond conventional information
technologies through efforts geared to promoting use of emerging technologies that harness artificial
intelligence (AI), the Internet of things (IoT) and other such innovations.
b. With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the fiscal year ended
March 31, 2018, use of this service increased particularly among our existing large-lot customers, against
a backdrop that included e-commerce market growth.
c. For our customers who mainly make use of pamphlets, catalogs and other such promotional materials intheir marketing activities, we have been developing our e-On Demand Solutions business which involves
providing total solutions in terms of systems for ordering promotional products, warehouse storage,administration, delivery and other logistics functions, and printing. During the fiscal year ended March 31,
2018, use of such services increased among newly gained customers and existing customers.
d. Operating revenue amounted to 46,480 million yen, up 1.8% from the year-ago period mainly as a resultof having achieved a greater volume of business in the “Web-based Shipment Control” and an increase inuse of e-On Demand Solutions business among customers. Operating profit was 10,587 million yen, up
13.0% from the year-ago period.

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● Financial
a. In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
b. With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the fiscal year ended March 31, 2018, we provided a wide rangeof payment settlement services to our customers by promoting use of our “Kuroneko Web Collect” and“Kuroneko Pay After Delivery Services,” and concurrently worked to increase profitability. Moreover, we
took steps to improve our services in the e-commerce market, which is poised for expansion going
forward. This involved launching sales of our “Raku-uru Cart” service that helps business operators enter
the e-commerce market, and providing one-stop options in terms of payment settlement, delivery supportand shopping cart features.
c. In the lease services business, we have been generating favorable results with respect to financial leases
primarily involving trucks and installment sales. We have also been developing peripheral operations that
include providing vehicle referrals and resale support, while forging ahead in making proposals involving
total solutions related to vehicles.
d. Operating revenue amounted to 82,981 million yen, up 6.4% from the year-ago period, mainly due tofavorable results in the lease services business. Operating profit was 7,912 million yen, down 4.0% fromthe year-ago period, mainly due to a decline in delivery volume of our mainstay service “TA-Q-BIN
Collect” in line with shrinking market for cash-on-delivery.
● Autoworks
a. In the Autoworks Business, the Yamato Group develops its “24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation,” thereby providing value tologistics operations and logistics service providers in the form of “improvement of vehicle maintenanceconvenience” and “reduced maintenance expenses.” Furthermore, to better provide one-stop service
solutions geared toward customer business operations, we have added services for “maintaining andsafeguarding logistics facilities and equipment, and improving such workplace environments,” along with“offering insurance plans tailored to customer risk management needs” which provide coverage for such
assets.
b. In the fiscal year ended March 31, 2018, we took steps to expand sales by aggressively marketing out“Repairworks” services entailing periodic on-site customer visits.
c. Operating revenue amounted to 24,641 million yen, up 0.1% from the year-ago period largely as a resultof an increase in the number of vehicles serviced. Operating profit was 4,141 million yen, up 26.5% fromthe year-ago period, mainly due to progress made with respect to streamlining business processes,
particularly in terms of standardizing and enabling visual monitoring of our business operations.
● Othera. The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of
its network consisting of multiple companies and provides added value to customers through timely
delivery and frequent, right-volume delivery. In the fiscal year ended March 31, 2018, service use grewsteadily due to favorable results with respect to existing services.
b. Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
increased 3.2% from the year-ago period to 2,252 million yen.
CSR Initiatives
a. The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. During the fiscal year ended March 31, 2018, the entire Yamato Group including its overseas
operations carried out the “Zero Accident Campaign,” and Yamato Transport Co., Ltd. held the “7thNationwide Safety Competition” and engaged in efforts to enhance the skills of the Group’s professional
drivers with respect to safe vehicle operation, while also heightening safety awareness and improving
driving skills on a Group-wide basis. In addition, since 1998 we have been holding our “Safety Classes forChildren,” through which we convey the importance of traffic safety, in day care facilities, kindergartensand elementary schools across Japan. A total of about 3.00 million people have now participated.

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b.

c.

d.

e.

The Yamato Group works to ensure that its distribution mechanisms are environmentally sound, under its
policy of “Nekology” (combining “Kuroneko” with “ecology”) for promoting its environmental conservation
initiatives. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support
for environmental education of children who will bear responsibilities of the next generation. We have heldsuch classes on an ongoing basis nationwide since 2005, attracting about 240 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 partin training 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 fiscal year ended March 31, 2018, we
have been promoting our “combined passenger-cargo” operations using scheduled-route passenger
buses and railways in the ten geographic regions of Iwate prefecture, Miyazaki prefecture, Hokkaido,
Kumamoto prefecture, Hyogo prefecture, Nagano prefecture, Wakayama prefecture, Tokushima
prefecture, Gifu prefecture and Aichi prefecture thereby helping to improve lifestyle services for local
residents both by keeping scheduled bus and railway networks running in hilly and mountainous areas
where populations are substantially declining and getting older, and also by streamlining distribution in
those locations. In February, we also initiated joint transport arrangements under our “combined
passenger-cargo” operations in Miyazaki prefecture, in partnership with other transportation companies
with the aim of further streamlining distribution. In addition, we have been continuously promoting efforts
to achieve streamlining of logistics operations and realize next-generation logistics services at our Next
Delivery SQUARE facility which assumes the role of providing collective delivery services and otheraspects of logistics infrastructure within the Fujisawa Sustainable Smart Town (Fujisawa SST) community
which opened in Kanagawa Prefecture’s Fujisawa City. Moreover, we engaged 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 2,087 such endeavors thus far.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on Group-wide initiatives with respect to “reforming working styles” throughdeveloping upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour employees.

(2) Overview of financial position for fiscal 2018
Total assets were 1,115,433 million yen as of March 31, 2018, up 761 million yen from the end of the previous
fiscal year. The major factors in this were increases of 15,968 million yen in notes and accounts receivable trade associated largely with revenue increased in the Delivery Business, and 5,559 million yen in investment
securities largely due to fair value assessment of investment securities held by the Company and the Financial
Business, despite a decrease of 25,706 million yen in cash and deposits.
Liabilities decreased 11,266 million yen to 557,846 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 23,621 million yen decrease in loans payable of the Financial Business,
etc.
Total net assets were 557,586 million yen, up 12,027 million yen from the end of the previous fiscal year. Thiswas mainly attributable to an increase in retained earnings of 7,584 million yen due to the recording of profit
attributable to owners of parent of 18,231 million yen and payment of dividends of surplus of 10,645 million
yen.
Accordingly, the equity ratio changed to 49.3% from the previous fiscal year’s 48.4%.

-9-(3) Overview of cash flows for fiscal 2018
Net cash provided by operating activities amounted to 51,728 million yen, which is a decrease of 21,596 million
yen compared with the year-ago period. The major factor here included the recording of provision for special
wage payments of 15,129 million yen in the previous fiscal year.
Net cash used in investing activities was 41,174 million yen. Compared with the year-ago period, the amount of
net cash used decreased by 32,825 million yen. This was largely attributable to a decrease in purchase ofinvestment securities.
Net cash used in financing activities was 36,930 million yen. Compared with the year-ago period, the amount of
net cash used increased by 18,152 million yen. This is largely attributable to a 28,919 million yen increase in
repayment of loans payable.
As a result of the above, cash and cash equivalents were 202,863 million yen as of March 31, 2018, down
26,063 million yen from the end of the previous fiscal year.
(4) Future outlook
Going forward, the economic situation is likely to remain one that is plagued by ongoing uncertainties ahead
due to factors such as effects of political developments overseas, despite the prospect of gradual economic
recovery holding course amid underlying strengths in corporate earnings. Meanwhile, the severe businessenvironment affecting the logistics industry is likely to persist amid factors that include further tightening of thedomestic labor market, amid a continued upward trend with respect to small parcel volume brought about by
rapidly changing styles of consumption and other such trends.
In that environment, we will place a management focus on “reforming working styles” and endeavor to improveand develop the working environment, while in the Delivery Business promoting our “structural reforms in the
Delivery Business.” We anticipate an increase in operating revenue for the fiscal year ending March 31, 2019,
in comparison with the fiscal year ended March 31, 2018, given the likelihood of moderate increases in unit
price due to our adequate pricing initiatives, and despite a decrease in TA-Q-BIN delivery volume due topersisting controls on total volume. As for expenditures, we will focus on controlling outsourcing costs amid thelikelihood of rising personnel expenses primarily with respect to employee salaries incurred in process ofpromoting our “reforming working styles” initiatives.
We expect operating revenue will be 1,600.0 billion yen, with operating profit at 58.0 billion yen, ordinary profit
at 58.0 billion yen and profit attributable to owners of parent at 36.0 billion yen.
(5) Operational and financial issues to be addressed
In order to achieve sustainable growth, the Yamato Group will continuously take steps to bring about anapproach to management that places top priority on employee satisfaction, which is to say improving working
environment (“reforming working styles”), in a manner that first takes prevailing changes in the businessenvironment into account. At the same time, we will push ahead in bringing about transformation of the overall
Group’s business model so that it is better aligned with the coming era, and will also work to satisfy ourshareholders, customers, society and employees. To such ends, the Yamato Group will pursue the following
strategies:
a. Our efforts to forge a robust corporate culture will involve placing top priority on ensuring levels of qualitythat instill customer confidence while strengthening ESG, which is to say increasing employee satisfaction,
strengthening both legal and financial governance, and pursuing CSR initiatives. When it comes toincreasing employee satisfaction in particular, we will place utmost priority on “reforming working styles,”thereby practicing the Yamato Group founding principle of “inclusive management” by making“employee-friendly” and “rewarding” working environments a reality across the entire Yamato Group. To
such ends, we will take action that includes securing workforce capacity by upgrading to more appealing
personnel systems that attract a diverse range of talent, while also fostering employee pride andmotivation through initiatives that entail re-establishing an educational system and adopting aperformance evaluation scheme that facilitates an upbeat approach to work by rewarding employee
independence and autonomy.

- 10 -

b.

c.

d.

e.

f.

With respect to “reforming working styles” of Yamato Transport Co., Ltd. which is at the core entity of theGroup, we will persist with initiatives that include “improving and implementing thorough labor
management” and “encouraging a work-life balance” through efforts geared to placing top priority on“heightening employee satisfaction by bringing about a working environment where employees can takean upbeat approach to work.” At the same time, in addressing the issue of the labor shortage as it
extends into the future, we will work to heighten productivity across every aspect of Group operations,
including collection and delivery operations, back-office and sorting operations, by linking systems withbusiness operators and more swiftly setting up open-type parcel lockers, as well as promoting active useof cutting-edge technologies. Furthermore, we will strike a balance between expanding collection anddelivery capacity and regaining profitability through our efforts currently underway with respect to“rebuilding our ‘last mile’ network to make it more efficient” and “carrying out continuous and adequate
pricing initiatives.”
We will contribute to Japanese economic growth strategies by pushing ahead with our “Value Networking”
design which aspires to revolutionize logistics. We will persist with efforts to further develop our “last mile”
network, the greatest strength of the Yamato Group, by making use of our “Haneda Chronogate,” “Atsugi
Gateway,” “Chubu Gateway” and “Okinawa International Logistics Hub” facilities, as well as “Kansai
Gateway” facility, which started its operation in November 2017. Meanwhile, we will work toward creating
and developing a business model that can generate a high level of added value that improves logistics
speed, quality and costs, by fusing our business resources in areas such as information, logistics andtransaction settlement within this network.
In our business looking toward overseas markets, leveraging certifications under international standards
pertaining to chilled and frozen goods delivery services acquired by seven Yamato Group companies, wehave been actively promoting efforts to build cross-border networks that provide substantial added value.
In responding to the growth of cross-border logistics, we will continue working to forge collaboration
among five regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening ourcapabilities in each geographic region.
With the aim of enhancing our management foundations, we will incorporate cutting-edge digitaltechnologies as we create new businesses and bring about evolution and innovation of our existing ones.
In addition, to heighten our “capacity to generate earnings” leveraging the collective strengths of theGroup, we will reform the structure of Group management and upgrade to a management system thatcombines three components: accounts management, managerial accounting, and human resources(performance evaluation).
We will build a platform that links us with government bodies and corporations in various regions
throughout Japan, with the aim of providing support to people in their daily lives and revitalizing their local
communities. We will strive to become the group of companies which is the most appreciated and trusted
by society by creating value that can be shared among corporations and society through our core
operations.

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

- 11 -

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

As of March 31, 2018

AssetsCurrent assets
Cash and deposits

230,128

204,422

Notes and accounts receivable - trade208,130

224,099

Accounts receivable - installment

46,141

46,692

Lease investment assets

50,77752,641

Merchandise and finished goods

739

749

Work in process

216

146

Raw materials and supplies

1,818

1,919

Deferred tax assets

20,684

19,245

Other

29,15430,328

Allowance for doubtful accounts(1,282)(1,365)

Total current assets

586,510

578,880

341,134

336,986

Accumulated depreciation(196,244)(198,538)

Buildings and structures, net

144,889

138,447

61,092

65,522

Accumulated depreciation(41,561)(43,686)

Machinery and equipment, net

19,531

21,835

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

Machinery and equipment

Vehicles

194,073

197,587(177,671)(180,329)

16,401

17,257

Land

178,620

174,959

Lease assets

16,44815,669

Accumulated depreciation(8,446)(9,074)

Lease assets, net

8,001

6,595

Construction in progress

11,74916,200Other85,96891,421

Accumulated depreciation(60,092)(61,660)

Other, net

25,876

29,760405,070405,057

18,14917,259

Accumulated depreciation
Vehicles, net

Total property, plant and equipment
Intangible assets
Software
Other

3,522

2,872

Total intangible assets

21,671

20,131- 12 -

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Investments and other assets
Investment securities*1 54,281*1 59,841

Long-term loans receivable

1,360

2,978

Lease deposits

16,231

17,391

117

129

Deferred tax assets

26,643

28,340

Other

3,564

3,730

Allowance for doubtful accounts

(778)

(920)

Allowance for investment loss

–

(126)

101,420

111,363

528,162

536,553

1,114,672

1,115,433

Notes and accounts payable - trade155,736

155,323

Short-term loans payable

60,974

66,952Current portion of bonds–

10,000

Lease obligations

2,427

2,239

Income taxes payable

14,39911,019Deferred installment income

6,010

5,900

31,94833,208*2 15,129–

Net defined benefit asset

Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for bonuses
Provision for special wage payments
Other

85,222

110,392

Total current liabilities

371,848

395,037

Bonds payable

20,00010,000Long-term loans payable

89,90060,300

Lease obligations

4,866

3,548

Deferred tax liabilities

3,162

4,650

Net defined benefit liability

70,95275,495

Other

8,383

8,814

197,264

162,809569,113557,846

Non-current liabilities

Total non-current liabilities
Total liabilities- 13 -

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Net assets
Shareholders’ equity
Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

409,270

416,854

Treasury shares(39,077)(39,081)

Total shareholders’ equity

534,241

541,821

10,975

12,958

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

(422)

1,146

Remeasurements of defined benefit plans(5,614)(5,618)

Total accumulated other comprehensive income

4,938

8,486

6,379

7,279

545,559

557,586

1,114,672

1,115,433

Non-controlling interests
Total net assets
Total liabilities and net assets- 14 -

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
For the year ended
March 31, 2017

For the year ended
March 31, 2018

Operating revenue

1,466,852

1,538,813

Operating cost

1,385,492

1,452,485

81,35986,327

24,54325,701

Provision for bonuses

999

1,100

Retirement benefit expenses

1,390

1,168

Commission fee

4,168

6,928

Taxes and dues

8,315

8,061

Provision of allowance for doubtful accounts

709

813

Depreciation

2,120

1,923

Other

6,616

7,211

Total selling, general and administrative
expenses

46,47450,642

34,88535,685Interest income

155

136

Dividend income

691

844

Gain on sales of vehicles

249

278

Rent income

317

369

Other

630

967

Total non-operating income

2,044

2,596

Interest expenses

430

271

Share of loss of entities accounted for using
equity method

799

1,355

Other

816

569

Total non-operating expenses

2,045

2,196

34,88436,085

Operating gross profit
Selling, general and administrative expenses
Personnel expenses

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

157

179

Gain on sales of investment securities

599

1,639

Other

—

3

Total extraordinary income

757

1,821

- 15 -

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

For the year ended
March 31, 2018

Extraordinary loss
Loss on retirement of non-current assets

220

1,148

Impairment loss

1,284

3,241

Loss on valuation of investment securities

210

55

Provision of allowance for investment loss–

126

Provision of allowance for doubtful accounts–

136

Disaster recovery expenses for the Kumamoto
Earthquake

885

–

Other

3

75

Total extraordinary loss

2,603

4,783

Profit before income taxes

33,037

33,123

Income taxes - current

22,093

14,621

Income taxes - deferred(7,421)(186)

Total income taxes

14,672

14,435

Profit18,364

18,688311

456

18,053

18,231

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 16 -

(Consolidated statement of comprehensive income)(Millions of yen)
For the year ended
March 31, 2017
Profit

For the year ended
March 31, 2018

18,364

18,688Valuation difference on available-for-sale securities

1,268

2,514

Foreign currency translation adjustment(1,174)

1,569

Remeasurements of defined benefit plans, net of tax

4,456

0

0

(0)

4,551

4,084

22,916

22,772

22,51821,779398

992

Other comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 17 -

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

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

402,375(29,075)

537,348

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

Profit attributable to ownersof parent

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

0

0

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

—

0

6,895

(10,001)(3,106)

127,234

36,813409,270(39,077)

534,241

Accumulated other comprehensive income

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

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

9,790

750

(10,067)

473

6,034

543,855

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

Profit attributable to ownersof parent

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

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

1,184(1,173)

4,453

4,464

345

4,810

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

4,453

4,464

345

1,703

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

4,938

6,379

545,559- 18 -

For the year ended March 31, 2018
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares409,270(39,077)

534,241

Changes of items during
periodDividends of surplus(10,645)(10,645)

Decrease in retained
earnings owing to changes
in scope of equity method
application

(2)

(2)

Profit attributable to ownersof parent

18,231

18,231

Purchase of treasury shares
Disposal of treasury shares

0

(4)

(4)

0

0

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

—

0

7,584

(4)

7,580

127,234

36,813416,854(39,081)541,821

Accumulated other comprehensive income

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

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

10,975(422)(5,614)

4,938

6,379

545,559

Changes of items during
periodDividends of surplus(10,645)

Decrease in retained
earnings owing to changes
in scope of equity method
application(2)

Profit attributable to ownersof parent

18,231

Purchase of treasury shares(4)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

1,983

1,569

(4)

3,548

899

4,447

Total changes of items during
period

1,983

1,569

(4)

3,548

899

12,027

Balance at end of current
period12,9581,146(5,618)

8,486

7,279

557,586- 19 -

(4) Consolidated statement of cash flows(Millions of yen)
For the year ended
March 31, 2017

For the year ended
March 31, 2018

Cash flows from operating activities
Profit before income taxes

33,037

33,123

Depreciation

46,12646,435

Impairment loss

1,284

3,241

Increase (decrease) in net defined benefit liability

1,897

2,232

Increase (decrease) in provision for bonuses

1,283

1,256

Increase (decrease) in provision for special wage
payments

15,129(15,129)

Interest and dividend income

(846)

(980)

Interest expenses

587

391

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

799

1,355

Loss (gain) on sales of non-current assets

(154)

(106)

Loss on retirement of non-current assets

220

1,148

Loss (gain) on sales of investment securities(599)(1,639)Loss (gain) on valuation of investment securities

210

55

(15,594)(18,774)

19

227

Increase (decrease) in notes and accounts payable trade

7,454

(477)

Other, net

14,353

11,691

Subtotal

105,207

64,049Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories

Interest and dividend income received

837

929

Interest expenses paid

(582)

(384)

Income taxes paid

(32,138)(12,866)

Net cash provided by (used in) operating activities

73,32451,728Cash flows from investing activities(2,008)(2,282)

Proceeds from withdrawal of time deposits

Payments into time deposits

806

1,880

Purchase of property, plant and equipment(43,986)(36,671)

Proceeds from sales of property, plant andequipment

1,874

6,631

Purchase of investment securities(23,788)(1,708)Proceeds from sales of investment securities

1,599

2,689

Payments of loans receivable(1,418)(4,537)

Collection of loans receivable

1,028

1,103

Other payments(9,087)(9,667)

Other proceeds
Net cash provided by (used in) investing activities- 20 -

981

1,388(73,999)(41,174)(Millions of yen)
For the year ended
March 31, 2017

For the year ended
March 31, 2018

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(2,925)

13,252

Repayments of finance lease obligations(2,877)(2,570)

Proceeds from long-term loans payable

43,720

4,000

Repayment of long-term loans payable(35,499)(40,876)

Purchase of treasury shares(10,005)(4)

Cash dividends paid

(11,155)(10,640)

(52)

(92)

Cash dividends paid to non-controlling interests
Other, net

170(18,777)(36,930)

(882)

313

Net increase (decrease) in cash and cash equivalents(20,335)(26,063)

Cash and cash equivalents at beginning of period

249,261

228,926

Cash and cash equivalents at end of period

228,926

202,863

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents- 21 -

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

Scope of consolidation(1) Number of consolidated subsidiaries: 40
Names of major consolidated subsidiaries:
Yamato Transport Co., Ltd.
Yamato Global Express Co., Ltd.
Yamato Global Logistics Japan Co., Ltd.
Yamato Packing Service Co., Ltd.
Yamato Home Convenience Co., Ltd.
Yamato Financial Co., Ltd.
Yamato Autoworks Co., Ltd.
YAMATO (CHINA) CO., LTD.
YAMATO ASIA PTE. LTD.

Okinawa Yamato Transport Co., Ltd.
Yamato Logistics Co., Ltd.
Yamato Multi-Maintenance Solutions Co., Ltd.
YAMATO TRANSPORT U. S. A., INC.
Yamato System Development Co., Ltd.
Yamato Lease Co., Ltd.
YAMATO BOX CHARTER CO., LTD
YAMATO INVESTMENT (HONG KONG) LIMITEDYAMATO (CHINA) CO., LTD. is included in the scope of consolidation effective from the fiscal year underreview, due to being newly established by the Company.
As of April 1, 2018, Yamato Multi-Maintenance Solutions Co., Ltd. ceases to exist upon absorption-typemerger having been carried out with Yamato Logistics Co., Ltd., the surviving company.
(2) Non-consolidated subsidiaries, etc.
CKE TRANSPORT AGENCY SDN.BHD. and certain other subsidiaries are not included within the scopeof consolidation. The total assets, operating revenue, profit, and retained earnings of these
non-consolidated subsidiaries are immaterial and, even taken together as a group, they do not exert asignificant influence on the consolidated financial statements.
2.

Application of equity method(1) Number of affiliates accounted for by equity method: 16
Names of major equity method affiliates:
GD EXPRESS CARRIER BHD.
Packcity Japan Co., Ltd.
GUANGZHOU WISEPOWER TRANSPORTATION& DISTRIBUTION GROUP CO., LTD.
Effective from the fiscal year under review, the scope of equity method application encompasses SCG
YAMATO EXPRESS CO., LTD. and one other company, largely due to their increased materiality.
(2) Non-consolidated subsidiaries and affiliates not accounted for by equity method
Entities not subject to the equity method such as CKE TRANSPORT AGENCY SDN.BHD. and certain
other non-consolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain otheraffiliated companies are excluded from the scope of entities accounted for using the equity method
because they do not exert a significant influence on the consolidated financial statements even whentaken together as a group, given immateriality of their profit, retained earnings and other financial results.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

- 22 -

(Consolidated balance sheet)*1 Investment securities for non-consolidated subsidiaries and affiliates are as follows.
Fiscal 2017
Investment securities

21,693(Millions of yen)
Fiscal 2018
23,609*2 Provision for special wage payments
Fiscal 2017
The provision for special wage payments has been recorded on the basis of the estimated amount of payment
with respect to consideration for labor to be paid on the basis of working hours deemed subject to consideration
as a result of the fact-finding investigation regarding work performed during the fiscal year ended March 31,
2017.
(Segment information)
1. Segment information(1) Summary of reportable segment
The reportable segments of the Yamato Group are constituent units of the Yamato Group whose separate
financial information can be obtained. The Board of Directors of the Company periodically examines thesesegments to decide on the allocation of management resources and evaluate business performance.
The Yamato Group consists of six business segments under the umbrella of the Company, a pure holding
company, and these business segments have been formed according to business activity. Business
management is conducted based on this business segment.
Accordingly, based on this business segment, the Yamato Group has the following six reportable segments:
Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial business, andAutoworks business.
Type of services by reportable segment
Reportable segment
Delivery
BIZ-Logistics
Home Convenience
e-Business
Financial
Autoworks

Type of services
Small parcel delivery services for consumers and corporations
Business-to-business distribution
Moving and other lifestyle support services for consumers
Information services for corporations, such as ASP services and development of
information systems
Financial services for consumers and corporations, such as settlement
Collective vehicle management agent business for transportation companies(2) Method of calculating operating revenue, profit/loss, assets and other items by reportable segment
The accounting method used for reported business segments complies with accounting policy that has been
adopted in preparing the consolidated financial statements.

- 23 -

(3) Information regarding the amounts of operating revenue, profit/loss, assets and other items by reportablesegment
For the year ended March 31, 2017
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,151,028

108,643

49,163

45,63977,98566,56013,357

14,59334,6713,049

1,217,588
5,638
638,179

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

32,416

2,574

541

4,368

4,402

305

5,056

—

—

—

31,610

4,798

708

3,445

7,379

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,6139,777
1,466,852—
1,466,852
Inter-segment operating revenue or
28,18560,875221,294(221,294)—transfers
Total
52,79970,653
1,688,146(221,294)
1,466,852
Segment profit
3,273
35,477
67,149(32,264)
34,885
Segment assets
25,798
11,941
1,068,842
45,8301,114,672
OthersDepreciation
735
410
45,448665
46,114
Investment in entities accounted for
—
—
5,362
13,711
19,073using equity method
Increases of property, plant and
263
591
48,796
197
48,993equipment and intangible assets
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 34,409 million yen.
3. Adjustments made are as follows.
(1) The adjustment of (32,264 million yen) of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of 45,830 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (150,291 million yen) and group-wide assets of 196,122 million yen not allocated to each reportable segment.
(3) The adjustment of 13,711 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 197 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 179 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

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For the year ended March 31, 2018
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,201,745

121,939

48,90046,48082,981

69,67013,79913,80539,1892,899

1,271,415
6,758
662,581

135,739
4,087
74,57162,705522
21,99385,670
10,58749,06885,8807,912
258,790

32,916

2,157

582

4,120

5,232

523

5,348

—

—

—

34,380

3,588

897

2,022

11,644

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,641
12,125
1,538,813—
1,538,813
Inter-segment operating revenue or
30,29944,273
213,936(213,936)—transfers
Total
54,94056,3981,752,749(213,936)
1,538,813
Segment profit
4,141
17,21751,226(15,541)
35,685
Segment assets
28,013
13,543
1,108,561
6,871
1,115,433
OthersDepreciation
695
373
46,078344
46,423
Investment in entities accounted for
—
—
5,871
13,957
19,829using equity method
Increases of property, plant and
830
803
54,168313
54,482equipment and intangible assets
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 17,482 million yen.
3. Adjustments made are as follows.
(1) The adjustment of 15,541 million yen of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of 6,871 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (154,668 million yen) and group-wide assets of 161,540 million yen not allocated to each reportable segment.
(3) The adjustment of 13,957 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 313 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 304 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

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2.

Relevant information
For the year ended March 31, 2017(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko DM-Bin

981,002(Millions of Yen)
Total

Other

81,276

404,572

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

North America
1,441,672

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

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

Other
9,789

b. Property, plant and equipment
Japan

North America
403,527

Other364(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.
For the year ended March 31, 2018(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko DM-Bin

1,035,052(Millions of Yen)
Total

Other

78,789424,971

1,538,813(2) Information by region
a. Operating revenue
Japan

North America
1,510,741

17,223(Millions of Yen)
Total
1,538,813

1,447(Millions of Yen)
Total
405,057

Other
10,848b. Property, plant and equipment
Japan

North America
403,241Other369(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.

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3.

Information regarding impairment losses of non-current assets by reportable segment
For the year ended March 31, 2017
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics
764

Autoworks
Impairment loss

322

Home
Convenience
178

Other
—

Financial—

Corporate or
eliminations

Total

18

e-Business

1,284

0
Consolidated

—

1,284

For the year ended March 31, 2018
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics

2,426
Autoworks

Impairment loss

4.

Home
Convenience

685
Other

91

e-Business38—
Corporate or
eliminations

Total
—

Financial

3,241

Consolidated—

Information regarding amortization and unamortized balance of goodwill by reportable segment
For the year ended March 31, 2017
Descriptions are omitted, as the monetary value is immaterial.
For the year ended March 31, 2018
Descriptions are omitted, as the monetary value is immaterial.

- 27 -—

3,241

(Per share information)
Fiscal 2017
1,367.51 yen
45.37 yen

Net assets per share
Basic earnings per share

Fiscal 2018
1,395.74 yen
46.24 yen

Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. The basis for calculating “basic earnings per share” is as follows.
Fiscal 2017
Profit attributable to owners of parent

18,053 million yen

Amount not belonging to ordinary shareholders
Profit attributable to owners of parent concerning common shares
Average number of common shares during the period(Important subsequent matters)
Not applicable.

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Fiscal 201818,231 million yen— million yen— million yen

18,053 million yen

18,231 million yen

397,930 thousand shares

394,276 thousand shares4. Others
Operating revenue by businessBusiness segment(Millions of yen)
Fiscal year ended
March 31, 2017

Ratio

Fiscal year ended
March 31, 2018

Ratio

Change%%%TA-Q-BIN
1,047,668
71.4
1,099,341
71.4
4.9
Kuroneko DM-Bin
85,383
5.8
82,542
5.4(3.3)
Express
42,2722.9
42,4562.8
0.4
Delivery
Others99,497
6.8
102,856
6.7
3.4
Eliminations(123,793)(8.4)(125,453)
(8.2)
1.3
Total
1,151,028
78.5
1,201,745
78.1
4.4
Trading logistics service
35,583
2.4
39,075
2.5
9.8
Sales and Logistics
40,3902.8
46,4933.0
15.1
Multi maintenance
13,916
0.9
15,586
1.0
12.0
BIZ-Logistics Products Logistics
4,390
0.3
4,797
0.3
9.3
Others43,637
3.0
46,7883.0
7.2
Eliminations(29,275)(2.0)(30,800)
(2.0)
5.2
Total
108,643
7.4
121,939
7.9
12.2
Home convenience
42,016
2.9
41,9382.7(0.2)
Business convenience
17,847
1.2
16,396
1.1
(8.1)
Home
Technical Network
3,951
0.3
4,428
0.3
12.1
Convenience
Eliminations(14,651)(1.0)(13,863)
(0.9)
(5.4)
Total
49,163
3.4
48,9003.2(0.5)
e-logistics solution
11,4650.8
12,381
0.8
8.0
Credit card solution
9,711
0.7
9,733
0.6
0.2
IT operating*
6,834
0.5
6,971
0.5
2.0
e-BusinessWeb-based mail order solution
5,625
0.4
5,433
0.4
(3.4)
Others53,954
3.7
54,9763.6
1.9
Eliminations(41,952)(2.9)(43,016)
(2.8)
2.5
Total
45,6393.1
46,480
3.0
1.8
Payment
37,403
2.5
34,907
2.3
(6.7)
Lease
36,0402.5
40,498
2.6
12.4
Credit & Finance
3,650
0.2
3,768
0.2
3.2
Financial
Others
4,021
0.3
6,785
0.4
68.7
Eliminations(3,131)(0.2)(2,979)
(0.2)
(4.9)
Total
77,985
5.3
82,981
5.4
6.4
Truck solution
47,472
3.2
48,768
3.2
2.7
Others
7,888
0.5
8,868
0.6
12.4
Autoworks
Eliminations(30,746)(2.1)(32,994)
(2.1)
7.3
Total
24,613
1.7
24,641
1.6
0.1
JITBOX Charter service
9,126
0.6
10,467
0.7
14.7
Others63,984
4.4
48,935
3.2(23.5)
Other
Eliminations(63,333)(4.3)(47,277)(3.1)(25.4)
Total
9,777
0.7
12,125
0.8
24.0
Total
1,466,852
100.0
1,538,813
100.0
4.9
Effective from the fiscal year ended March 31, 2018, the name of the IT operating solution category in the e-Business segment has beenchanged to the IT operating.

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