Translation
October 30, 2014

Consolidated Financial Results
for the Second 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:
November 12, 2014
Scheduled date of the commencement of dividend payment:
December 10, 2014
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the second quarter of fiscal year 2015
(cumulative: from April 1, 2014 to September 30, 2014)(1) Consolidated operating results
For the six months ended
September 30, 2014
September 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%
673,237
2.7
21,284(8.8)
22,322(6.6)
12,149(1.8)
655,818
6.2
23,35029.5
23,911
26.3
12,37653.1
For the six months ended September 30, 2014: 12,989 million yen ((18.1)%)
For the six months ended September 30, 2013: 15,851 million yen (124.5%)
Net income per share

For the six months ended
September 30, 2014
September 30, 2013

Yen
28.99
29.21

Net income pershare - fully diluted
Yen
28.26
28.48

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
September 30, 2014
1,029,366
563,228
54.2
March 31, 2014
1,032,134
560,172
53.4(Reference) Equity:
As of September 30, 2014: 557,736 million yen As of March 31, 2014: 551,379 million yen

2.

Dividends
First quarter

Second quarter
Yen
Yen
Fiscal 2014—
12.00
Fiscal 2015—
12.00
Fiscal 2015 (Forecast)——(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%
Full year
1,400,000
1.8
70,00010.9(Note) Revisions to the forecasts most recently announced: Yes(Percentages indicate year-on-year changes.)
Net income
Ordinary income
Net income
per share
Millions of yen%
Millions of yen%
Yen
71,0009.8
41,00017.9
99.27* Notes(1) Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Matters Regarding Summary Information (Notes), (1) Application of specific accounting for preparing thequarterly consolidated financial statements” of the attached materials to the quarterly financial results report on page 8.

(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 8.

(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of September 30, 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 September 30, 2014
34,846,806 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 six months ended September 30, 2014
419,089,270 shares
For the six months ended September 30, 2013
423,712,781 shares*Indication regarding execution of quarterly review procedures
At the time of the disclosure of this quarterly financial results report, the quarterly review procedures in accordance with the Financial
Instruments and Exchange Act are in progress.

*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons.
For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts
for the Six Months, (3) Qualitative information on consolidated earnings forecasts” of the attached materials to the quarterly financial results
report on page 7.
• The Company plans to hold a financial results meeting for analysts on October 31, 2014. The materials distributed at this financial resultsmeeting shall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index

1. Qualitative Information on Settlement of Accounts for the Six Months ..................................................................... 2(1) Qualitative information on consolidated operating results ................................................................................. 2(2) Qualitative information on consolidated financial position ................................................................................. 6(3) Qualitative information on consolidated earnings forecasts .............................................................................. 7
2. Matters Regarding Summary Information (Notes) .................................................................................................... 8(1) Application of specific accounting for preparing the quarterly consolidated financial statements ...................... 8(2) Changes in accounting policies, changes in accounting estimates, and restatement ....................................... 8
3. Consolidated Financial Statements .......................................................................................................................... 9(1) Consolidated balance sheet .............................................................................................................................. 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 11
Consolidated statement of income (cumulative) .............................................................................................. 11
Consolidated statement of comprehensive income (cumulative) ..................................................................... 12(3) Consolidated statement of cash flows ............................................................................................................. 13(4) Notes to consolidated financial statements ..................................................................................................... 14(Notes to premise of going concern) ................................................................................................................ 14(Segment information, etc.) .............................................................................................................................. 14(Notes on significant changes in the amount of shareholders’ equity) ............................................................. 15(Important Subsequent Matters) ...................................................................................................................... 16
4. Supplementary Information .................................................................................................................................... 17
Operating revenue by business ................................................................................................................................ 17-1-

1. Qualitative Information on Settlement of Accounts for the Six Months(1) Qualitative information on consolidated operating results
In the six months ended September 30, 2014, despite a diminishing impact from the post-consumption tax hikepull-back in demand, concerns of stagnating consumer spending were particularly evident amid lagging
economic recovery. Moreover, the Company also faced harsh operating circumstances, marked by a tightening
labor market, rising fuel expenses and an otherwise deteriorating cost environment, along with adverse weather
conditions. Operating in this environment, we worked toward achieving the objectives of the Long-Term
Management Plan “DAN-TOTSU Management Plan 2019” and the Medium-Term Management Plan
“DAN-TOTSU Three-Year Plan STEP.” To that end, we focused our efforts on taking steps to create a businessmodel 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 Yamato Group and businessresources of individual Group companies.
In the Delivery Business, revenues continued to climb due to progress made with ongoing initiatives to ensure
receipt of adequate fees. Nevertheless, earnings decreased amid stalling delivery volumes as a consequenceof lagging economic recovery and adverse weather conditions.
In the non-delivery businesses, we took steps to expand our existing service offerings by enlisting the strengthsof Group companies, while also drawing on Group-wide ties as we continued to aggressively pursue solution
sales geared toward addressing customers’ business challenges.
Our consolidated financial results for the six months ended September 30, 2014 are as follows.
(Millions of yen)
Item
Operating revenue
Operating income
Ordinary income
Net income

For the six months
ended September 30, 2013
655,818
23,35023,911
12,376

For the six months
ended September 30, 2014
673,237
21,284
22,322
12,149Change17,418(2,066)(1,589)(226)

Growth (%)
2.7
(8.8)
(6.6)
(1.8)

Initiatives for the entire Yamato Group
a.

b.

c.

d.

The Yamato Group has been pursuing its “Value Networking” design, and on the basis of which creating
business models for generating a high level of added value through the combined efforts of our respective
businesses, while at the same time contributing to growth strategies for the Japanese economy.
Meanwhile, we are also taking steps to forge a robust corporate culture that acts as a foundation forbusiness creation and development.
To further promote our “Value Networking” design, we have been drawing on alliances with Group
companies in promoting solution sales, and crafting business models that deliver a high level of added
value by leveraging our business network. Also, to address varied customer needs in Japan and overseas,
we have been making more effective use of our innovative network platform consisting of the “Haneda
Chronogate,” “Atsugi Gateway” and “Okinawa International Logistics Hub” facilities, in addition to ourexisting “last mile” network.
Continuing on from the three months ended June 30, 2014, we persisted with efforts geared towardforging a more robust corporate culture. In that regard, we improved the reliability of our quality controls,
and accordingly focused on building systems for ensuring that we honor promises made to our customers.
To that end, we worked on enhancing the efficiency and dependability of operations in part by improving
our transport systems and by using our information technology network to enable visual monitoring ofoperating volumes. 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.
We took aggressive action to reduce costs, including measures to improve productivity, amid adeteriorating external cost environment marked by a tightening labor market and rising fuel expenses.
Consequently, we achieved increases both in terms of revenues and income over the three months of thesecond quarter under review.

-2-

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.

f.

For the six months
ended September 30, 2013
794
1,033

For the six months
ended September 30, 2014
787
944

(Million parcels / units)
ChangeGrowth (%)
(6)
(88)

(0.9)
(8.6)

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 have been working to address our failure to fully implement in-house rules for the “Cool TA-Q-BIN”
delivery service, which came to light last year. To that end, we have established a division with full-time
employees dedicated to the task of maintaining and improving service quality. We have also been working
to upgrade systems, thereby bringing in the necessary equipment and supplies and making it possible tovisually monitor operating volumes through enhancements to our IT platform. While these actions haveenabled us to build a platform for quality control over the six months ended September 30, 2014, we will
redouble our efforts going forward to ensure better quality results, without fail, at a level that earns the trustof our customers.
For our individual customers, we have been developing Yamato Transport Co., Ltd.’s proprietary“Kuroneko Member Discount” service and offer TA-Q-BIN discount pricing to customers of the “Kuroneko
Members” service through easy settlement using e-money cards. In the six months ended September 30,
2014, we took steps to increase service membership, while actively encouraging use of the service.
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.
Efforts in our business geared toward revitalizing communities have entailed working to create businessmodels that involve our working with municipalities in providing lifetime lifestyle support geared toward
delivering solutions designed to adequately address locally-based hardships and challenges. Additionally,
we have been developing services that provide greater convenience to tourists accessing train stations
and other such facilities. Our service offerings in this area include temporary safekeeping of personal
baggage and same-day baggage delivery to lodging facilities using our transportation network.
Operating revenue amounted to 532,857 million yen, up 1.5% from the year-ago period as a result ofactive efforts with initiatives to ensure receipt of adequate fees. Meanwhile, operating income was 8,093
million yen, down 29.2% from the year-ago period, despite efforts to keep costs in line with operating
volumes. The decrease reflects increased costs associated with systemic improvements to ensure quality,
along with higher subcontracting costs amid a surge in crude oil prices and a tightening labor market.

 BIZ-Logistics
a.
b.

c.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall functions and international transportation functions.
We have been expanding the Yamato Group’s services for the mail-order industry andbusiness-to-business delivery and procurement logistics into wide ranging offerings designed to address
customer demands. Through such services, we provide support for placing and accepting orders, andenabling customers to visually monitor their inventories. In the six months ended September 30, 2014, our“Today Shopping Service,” which is designed to significantly diminish lead times between mail orderplacement and product delivery, attracted increased use, partially as a result of having captured new
business for the service.
With respect to our services involving product maintenance and recalls, we have been developing
integrated services where we handle collection, repairs and returns of faulty products, while also
expanding total support services for dealing with corporate product recalls. In the six months ended
September 30, 2014, revenues increased steadily partially as a result of new business gained pertaining to
our integrated repair services, and also due to our landing business involving sizeable product recalls.

-3-

d.

e.

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.
Operating revenue amounted to 46,612 million yen, up 6.5% from the year-ago period mainly due to firm
results with mail-order services and services involving product repairs. Operating income was 2,101 million
yen, up 21.1% from the year-ago period.

 Home Convenience
a.
b.

c.

d.

In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
With respect to individual customers, the Yamato Group operated a variety of services to assist in daily life
such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances and moving-related services. In the six months ended September 30, 2014, we achievedfavorable results with respect to use of our “Raku Raku Household TA-Q-BIN” service, which weoverhauled to better meet the needs of customers who access e-commerce websites. In addition, we havebeen developing 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.
For our corporate clients, we have been developing business support services mainly geared toward
corporations, including office relocation services and our Technical Network Business where the YamatoGroup and our construction and installation contractors combine networks so that we can provide one-stop
support handling everything from household equipment delivery and set-up, to installation andmaintenance of such equipment. In the six months ended September 30, 2014, active engagement inTechnical Network Business sales activities contributed to higher revenues in this operating segment.
Operating revenue amounted to 23,582 million yen, up 5.0% from the year-ago period, amid a challenging
environment characterized by falling numbers of housing starts and fewer condominium sales. The
increase in operating revenue is attributable to favorable results with respect to use of our services by the
e-commerce businesses and our active engagement in sales activities. With respect to profits, thesegment posted an operating loss of 384 million yen, which was an improvement of 253 million yen fromthe year-ago period, as a result of stringent cost management involving personnel-related expenses andother outlays.

 e-Business
a.
b.

c.

d.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively conducting solution platform business that combine logistics technology andfinancial technology with information technology.
With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the six months ended
September 30, 2014, service-use results were favorable, particularly among clients in the mail-ordermarket who ship packages from remote locations.
The Yamato Group has been developing services for customers whose needs involve managing products
on an individual basis, such that combine serial acceptance/dispatch control in warehouses, inventory
tracking and other information-related services with services involving affixing data to products and partial
processing of merchandise. In the six months ended September 30, 2014, revenues increased steadily as
use from telecommunications equipment-related services customers increased.
Operating revenue amounted to 19,957 million yen, up 2.0% from the year-ago period, due to an increasein new business and growing sales to existing customers. Operating income was 3,485 million yen, down
0.8% from the year-ago period due in part to increased expenses associated with setting up new offices.

-4- Financial
a.
b.

c.

d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection 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 six months ended September 30,
2014, we fortified our strategy for approaching the e-commerce market and actively developed businessinvolving “Kuroneko Web Collect.” Efforts in this regard included pursuing alliances with related
corporations and promoting our consulting services. With respect to e-money related services, weachieved greater use of our multi e-money settlement terminals and higher e-money transaction amounts.
In the lease services business, there was growth in numbers of contracts and the amount of assets amid
efforts to propose options centered on customer’s viewpoints, on the basis of extensive assessments ofcustomer needs particularly with respect to leases of previously-owned cars. Moreover, premised on thecondition of vehicle 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 andfood businesses.
Operating revenue amounted to 31,926 million yen, up 7.4% 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 4,359 million yen, down 0.9% from the year-ago period due in part to the impact of lower“TA-Q-BIN Collect” delivery volumes stemming from factors such as lagging economic recovery broughton by a pull-back in demand due to the consumption tax hike.

 Autoworks
a.

b.
c.

In the Autoworks Business, the Yamato Group develops its “24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation,” thereby providing value tologistics operations and logistics service providers 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 six months ended September 30, 2014, the Yamato Group steadily increased the number ofvehicles serviced as a result of the strong performance of the “Maintenance Package,” which evens out
the monthly vehicle maintenance expenses.
Operating revenue amounted to 14,364 million yen, up 16.2% from the year-ago period due to favorable
results from the mainstay truck maintenance and other services. Operating income was 2,022 million yen,up 8.5% from the year-ago period.

 Othera.

b.

The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-volume delivery. In the six months ended September 30, 2014, the service generated
increased revenues partially as a result of developing information systems and improving service quality,
and also due to favorable results from existing service offerings.
Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 21.9% from the year-ago period to 487 million yen.

CSR Initiativesa.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the six months ended September 30, 2014, the Group promoted various initiatives such as
conducting the “Zero Traffic Accidents Campaign” which is a safety campaign deployed horizontally

-5-

b.

c.

d.

throughout the entire group, and we provided employee education programs using vehicles equipped withsystems that facilitate safe driving practices. In addition, a total of more than 2.48 million children 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.
The Yamato Group has established the “Environmental Conservation Declaration” on the basis of theGroup corporate philosophy, and moreover works to ensure that our distribution mechanisms areenvironmentally sound. At the same time, the Yamato Group remains committed to heightening employee
awareness of environmental conservation issues, and accordingly the Group pursues environmental
conservation initiatives under our policy of "Nekology" (combining “Kuroneko” with “ecology”).
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 Mail, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” In the second quarter under review, continuing on
from the prior quarter, the Yamato Group worked in collaboration with government bodies on 745 separate
occasions with respect to keeping a protective eye and providing shopping assistance to the elderly living
in remote areas, lending support to small- and medium-sized enterprises in conjunction with local
governments, and other such initiatives taken in the course of performing myriad services that draw on the
Yamato Group’s managerial resources. In July, our “Magokoro TA-Q-BIN service, a Creating Shared Value(CSV) initiative entailing our close partnership with local communities,” received the Grand Prize at the
2nd “Platinum Award,” and the Minister for Internal Affairs and Communications Prize.

(2) Qualitative information on consolidated financial position(Assets, liabilities and net assets)
Total assets were 1,029,366 million yen as of September 30, 2014, down 2,767 million yen from the end of theprevious fiscal year. The major factor in this was a decrease of 10,185 million yen in notes and accounts
receivable - trade while property, plant and equipment increased 5,738 million yen due to construction oflogistics facilities.
Liabilities decreased 5,823 million yen to 466,138 million yen from the end of the previous fiscal year. The
major factors in this were increases in loans payable of 12,319 million yen and accrued consumption taxes of
13,515 million yen while notes and accounts payable - trade decreased 31,358 million yen.
Total net assets were 563,228 million yen, up 3,056 million yen from the end of the previous fiscal year. The
major factors included the recording of net income of 12,149 million yen, and the dividends of surplus of 5,027
million yen, in addition to an increase in retained earnings of 3,041 million yen due to a 4,080 million yen
decrease of retained earnings as of the beginning of the six months ended September 30, 2014, in line with theapplication of Accounting Standard for Retirement Benefits and its Guidance.
Accordingly, the equity ratio changed to 54.2% from the previous fiscal year’s 53.4%.
(Cash flows)
Net cash provided by operating activities for the six months ended September 30, 2014 amounted to 18,469
million yen, which is a decrease of 10,982 million yen compared with the year-ago period. The major factor was
an increase in net decrease in notes and accounts payable - trade of 27,936 million yen.
Net cash used in investing activities was 29,793 million yen. Compared with the year-ago period, the amount of
net cash used increased by 6,437 million yen. This is largely attributable to expenditures of 28,261 million yen
used for the purchase of property, plant and equipment in line with construction of logistics facilities, which is anincrease of 5,683 million yen compared with the year-ago period.
Net cash provided by financing activities was 4,091 million yen, which is an increase of 5,709 million yen
compared with the year-ago period. This is largely attributable to proceeds from loans payable of 12,426 million
yen, an increase of 6,513 million yen compared with the year-ago period.
As a result of the above, cash and cash equivalents were 211,842 million yen as of September 30, 2014, down
7,553 million yen from the end of the previous fiscal year.

-6-(3) Qualitative information on consolidated earnings forecasts
Looking ahead at the economy, despite a trend toward improvement in employment and income levels,
uncertainty is likely to prevail given factors such as stagnating personal consumption and the economic
downturn overseas.
In this environment, the Yamato Group will work to increase delivery volumes in the Delivery Business bycontinuing efforts to offer customer greater convenience and better service quality, while also continuously
addressing initiatives to ensure collection of adequate TA-Q-BIN fees. In the non-delivery businesses, we will
expand the revenue base through reinforcement of solution sales. On the cost front, the Group will promote
allocation of adequate numbers of personnel in line with operating volumes and an optimal number of hired
vehicles based on transport volume with the aim of ensuring positive operating income results.
The Yamato Group has made changes to the consolidated earnings forecasts for the full year of the fiscal year
ending March 31, 2015 since the announcement made on April 30, 2014.

-7-

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 second 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 of the fiscal year ending March 31, 2015, 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 theprovisions 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, the Company reviewed the calculation method of retirement benefit obligations and current service
costs and amended the determination of discount rate from one that is 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 six months
ended September 30, 2014.
As a result of this change, as of the beginning of the six months ended September 30, 2014, 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 six months ended September 30, 2014 isimmaterial.
(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 of the fiscal year
ending March 31, 2015. As a result, the method of recording the amount of difference caused by changes in the
Company’s ownership interests in subsidiaries in the case of subsidiaries under ongoing control of theCompany 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 inwhich they are incurred. Furthermore, for business combinations carried out on or after April 1, 2014, theaccounting method was changed to one in which the reviewed acquisition cost allocation resulting from thefinalization of the tentative accounting treatment is reflected in the quarterly consolidated financial statements
for the quarterly period in which the business 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 on April 1, 2014, and will continue
going forward.
As a result of this change, as of the end of the second quarter under review, capital surplus increased 834
million yen. In addition, the effect of this application on operating income, ordinary income, and income before
income taxes and minority interests of the six months ended September 30, 2014 is immaterial.

-8-3. Consolidated Financial Statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2014

As of September 30, 2014

AssetsCurrent assets
Cash and deposits

220,147

212,203

Notes and accounts receivable - trade188,144

177,959

Accounts receivable - installment

39,48040,777

Lease investment assets

35,32840,739Merchandise and finished goods

780

829

Work in process

234

276

Raw materials and supplies

2,222

1,788

Other

42,611

41,278

Allowance for doubtful accounts(1,591)(1,294)

Total current assets

527,359

514,558

329,288

330,404

Accumulated depreciation(174,246)(178,725)

Buildings and structures, net

155,042

151,678

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

193,516(171,770)(174,178)

16,11019,337

188,343

188,354

23,94423,959(15,201)(16,769)

8,742

7,189

140,979

149,508(92,090)(93,203)

48,88856,305417,127

422,865

17,51817,450Investment securities

26,11928,624Other

45,35847,046

Allowance for doubtful accounts(1,350)(1,179)Total investments and other assets

70,12874,491

504,774

514,808

1,032,134

1,029,366

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

Total non-current assets
Total assets-9-

(Millions of yen)
As of March 31, 2014

As of September 30, 2014

Liabilities
Current liabilities
Notes and accounts payable - trade

172,463

141,104

Short-term loans payable

36,411

33,659Lease obligations

4,784

3,816

Income taxes payable

20,907

11,517

Deferred installment income

5,349

5,474

Provision for bonuses

29,51535,832

Other

77,92787,015

Total current liabilities

347,360

318,420

Bonds with subscription rights to shares

20,00020,000Long-term loans payable

42,26657,337

Lease obligations

4,379

4,116

Net defined benefit liability

47,22454,916

Other

10,731

11,347

Total non-current liabilities

124,601

147,717471,961

466,138

Capital stock

127,234

127,234

Capital surplus

100,863

102,121

Retained earnings

371,965

375,007

Treasury shares(56,079)(54,675)

Total shareholders’ equity

543,984

549,687

8,769

9,937

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

(290)

Remeasurements of defined benefit plans(1,717)(1,598)

Total accumulated other comprehensive income

7,395

8,048

Minority interests

8,792

5,491

Total net assets

560,172

563,228

1,032,134

1,029,366

Total liabilities and net assets- 10 -

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

Operating revenue

655,818

673,237

Operating cost

614,338

633,922

Operating gross profit

41,48039,315

Selling, general and administrative expenses

18,13018,031

Operating income

23,35021,284Non-operating income
Interest income

49

44

Dividend income

345

387

Other

765

1,003

Total non-operating income

1,160

1,435

Interest expenses

226

167

Other

372

229

Total non-operating expenses

598

397

23,911

22,322Gain on sales of non-current assets

0407

Gain on sales of investment securities

0—Compensation for damage received—

257

Total extraordinary income

1

664

Loss on retirement of non-current assets

119

89

Loss on valuation of investment securities

3—

Loss on litigation

—

598

Other

3

—

126

687

Income before income taxes and minority interests

23,78722,299

Income taxes

11,39910,129

Income before minority interests

12,388

12,16911

20

12,376

12,149Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary losses

Minority interests in income
Net income- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the six months ended
September 30, 2013
Income before minority interests

For the six months ended
September 30, 2014

12,388

12,169Valuation difference on available-for-sale securities

2,614

1,324

Foreign currency translation adjustment

848

(633)

Other comprehensive income

Remeasurements of defined benefit plans, net of tax

—

128

3,463

819

15,851

12,989Comprehensive income attributable to owners of parent

15,525

12,810Comprehensive income attributable to minority interests

325

178

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

(3) Consolidated statement of cash flows(Millions of yen)
For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

Income before income taxes and minority interests

23,78722,299Depreciation

18,491

21,183

Increase (decrease) in provision for retirement
benefits

3,143—

Cash flows from operating activities

—

1,653

6,487

6,304

3

—

Decrease (increase) in notes and accounts
receivable - trade(5,313)

3,117

Increase (decrease) in notes and accounts payable trade(3,217)(31,154)

Other, net

8,164

13,965

Subtotal

51,54637,369399

452

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses
Loss (gain) on valuation of investment securities

Interest and dividend income received
Interest expenses paid

(443)

(325)

Income taxes paid

(22,051)(19,026)

Net cash provided by (used in) operating activities

29,451

18,469Purchase of property, plant and equipment(22,578)(28,261)

Proceeds from sales of property, plant andequipment

567

1,296

Purchase of investment securities

(5)

(356)

Cash flows from investing activities

Proceeds from sales of investment securities

2—

Payments of loans receivable

(711)

(707)

Collection of loans receivable

704

769

Other payments(3,283)(3,691)Other proceeds

1,949

1,158

(23,355)(29,793)(4,931)

4,000

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations(2,460)(2,555)

Proceeds from long-term loans payable

11,406

16,500

Repayment of long-term loans payable(562)(8,073)(5)(3)(5,082)(5,028)Purchase of treasury shares
Cash dividends paid
Other, net

17

(747)

(1,618)4,091

Effect of exchange rate change on cash and cash
equivalents

396

(320)

Net increase (decrease) in cash and cash equivalents

4,874(7,553)

Cash and cash equivalents at beginning of period

212,641

219,395

Cash and cash equivalents at end of period

217,515

211,842

Net cash provided by (used in) financing activities- 13 -

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

(Millions of yen)

BIZ-Logistics

Home
Convenience

e-Business

Financial

524,874

43,774

22,46819,56129,73429,448

5,664

7,232

12,861

1,845

554,323
11,43749,4391,734

29,700(637)

32,422
3,514

31,5804,401

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
12,3583,046
655,818—
655,818(2) Inter-segment operating revenue or
14,05542,196113,304(113,304)—
transfers
Total
26,41445,242
769,122(113,304)
655,818
Segment income (loss)
1,863
24,416
46,730(23,380)
23,350Notes: 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.

- 14 -

For the six months ended September 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

532,857

46,612

23,582

19,95731,92630,126

5,788

7,527

14,021

1,651

562,984
8,093

52,401
2,101

31,109(384)

33,9793,485

33,577
4,359

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
14,364
3,937
673,237—
673,237(2) Inter-segment operating revenue or
14,57140,474
114,162(114,162)—transfers
Total
28,93544,412
787,399(114,162)
673,237
Segment income (loss)
2,022
22,66542,344(21,060)
21,284
Notes: 1. Effective from the first quarter of the fiscal year ending March 31, 2015, Delivery Business segment includes the contact service
business, previously included in the e-Business, due to changes involving business segment categories made in accordance withactual circumstances related to management and administration. The segment information for the six months ended September
30, 2013 has been prepared and presented 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 of the fiscal year ending March 31, 2015, 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 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, the Company reviewed the calculation method of retirement benefit obligations and current service costs andamended the determination of discount rate from one that is based on the period of years approximate to the expected averageremaining working lives of employees to one that uses a single weighted average discount rate reflecting the estimated timing andamount of benefit payment.
In addition, the effect of this application on segment income/loss for the six months ended September 30, 2014 is immaterial.

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

- 15 -(Important Subsequent Matters)
Purchase and retirement of treasury shares
At the meeting held on October 30, 2014, the Board of Directors resolved matters related to the purchase oftreasury shares of the Company, in accordance with the provisions of the Articles of Incorporation, pursuant to
Article 459, Paragraph 1, Item 1 of the Companies Act of Japan, and also resolved to retire treasury shares of
the Company in accordance with the provisions of Article 178 of the Companies Act of Japan.
1. Reason of purchase and retirement of treasury shares
The Company purchases and retires its treasury shares in order to implement flexible capital policies inaccordance with changes in the business environment, and also with the aim of enhancing shareholder value.
2. Contents of matters related to the purchase of treasury shares
Type of shares to be purchased
Common shares of the Company
Total number of shares to be purchased
Up to 16,500,000 shares (ratio to the total number ofissued shares (excluding treasury shares) 3.93%)
Total acquisition price of shares to be purchased Up to 30 billion yen
Acquisition period
From October 31, 2014 to March 31, 2015
Acquisition method
Through the market
3. Contents to retirement of treasury shares
Type of shares to be retired
Total number of shares to be retired
Scheduled date of share retirement

Common shares of the Company
19,120,200 shares (ratio to the total number of issued
shares 4.21%)
November 13, 2014

- 16 -

4. Supplementary Information
Operating revenue by business
Fiscal year ended
For the six months
For the six months
ended September 30, 2013 ended September 30, 2014 Change
March 31, 2014
Business segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
69.6
467,88869.5
2.5
958,57369.7
456,560
Kuroneko Mail
9.5
58,1668.7(7.1)
126,035
9.2
62,578
Express
3.3
21,3113.2(1.7)
45,047
3.3
21,684
Delivery
Others *1
4.8
33,8995.0
8.9
68,0234.9
31,133Eliminations(7.2)(48,407)(7.2)
2.8(98,279)(7.1)(47,081)Total
80.0
532,857
79.2
1.5
1,099,399
80.0
524,874
Trading logistics service
2.8
18,4912.8
2.0
39,037
2.8
18,121
Sales and Logistics
15,072
2.3
16,4442.4
9.1
31,103
2.3
Multi maintenance
4,887
0.7
6,986
1.0
43.0
9,870
0.7
BIZ-Logistics Export Factory
0.3
2,032
0.3
9.7
3,781
0.3
1,852
Others2.8
18,6642.8
3.0
36,311
2.7
18,119Eliminations(2.2)(16,006)(2.4)
12.1(29,850)(2.2)(14,278)
Total
6.7
46,612
6.9
6.5
90,254
6.6
43,774Home convenience
20,284
3.1
20,6743.1
1.9
42,801
3.1
Business convenience
1.2
8,129
1.2
(0.9)
17,060
1.2
8,203
*2
Home
0.2
2,319
0.3
89.0
3,047
0.2
1,226
Convenience Technical Network *2
Eliminations(1.1)(7,540)(1.1)
4.0(14,186)(1.0)(7,247)
Total
3.4
23,582
3.5
5.0
48,723
3.5
22,468e-logistics solution
5,209
0.8
5,302
0.8
1.8
10,766
0.8
Credit card solution
3,849
0.6
4,050
0.6
5.2
7,890
0.6
IT operating solution *3
0.4
3,294
0.5
14.1
6,207
0.5
2,886
Web-based
mail
order
e-Business
0.5
3,032
0.5
4.7
6,071
0.4
2,895
solution *3
Others *1, 3
2.8
19,7192.9
7.3
38,801
2.8
18,382Eliminations(2.1)(15,441)(2.3)
13.0(28,905)(2.1)(13,661)
Total
3.0
19,9573.0
2.0
40,831
3.0
19,561
TA-Q-BIN Collect
19,044
2.9
18,0302.7(5.3)
40,178
2.9
Lease
1.5
12,8391.9
29.5
20,896
1.5
9,911
Credit & Finance
1,633
0.2
1,698
0.2
4.0
3,239
0.2
Financial
Others
0.2
1,048
0.2
1.8
2,061
0.2
1,030
Eliminations(0.3)(1,690)(0.3)(10.3)(3,647)(0.3)(1,885)Total
4.5
31,9264.7
7.4
62,727
4.5
29,734
Truck maintenance
24,388
3.7
26,5343.9
8.8
49,651
3.6
Others
0.5
3,576
0.5
12.4
6,507
0.5
3,183
Autoworks
Eliminations(2.3)(15,746)(2.3)
3.5(30,508)(2.2)(15,213)
Total
1.9
14,3642.1
16.2
25,6501.9
12,358JITBOX Charter service
0.3
2,707
0.4
33.3
4,677
0.3
2,031
Others6.7
42,7486.4(3.0)
64,434
4.7
44,056
Other
Eliminations(6.5)(41,518)
(6.2)
(3.5)
(62,089)(4.5)(43,041)
Total
0.5
3,937
0.6
29.3
7,022
0.5
3,046
Total
100.0
673,237100.0
2.7
1,374,610
100.0
655,818
The notes below describe changes to business segment classifications effective from the first quarter of the fiscal year ending March 31, 2015,
made in accordance with actual circumstances related to management and administration. The figures presented for the six months ended
September 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 Web-based mail order solution category, is now presented in the
Others category.

- 17 -