Translation
January 30, 2018

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

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Senior Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
February 9, 2018
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the third quarter of fiscal year 2018
(cumulative: from April 1, 2017 to December 31, 2017)(1) Consolidated operating results

For the nine months ended
December 31, 2017
December 31, 2016
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
1,171,775
4.8
32,131(44.7)
32,378(44.4)
17,429(51.2)
1,118,143
3.1
58,063(6.5)
58,263(7.7)
35,719(6.3)
For the nine months ended December 31, 2017: 24,549 million yen ((31.2)%)
For the nine months ended December 31, 2016: 35,676 million yen ((4.8)%)
Basic earnings per share

For the nine months ended
December 31, 2017
December 31, 2016

Diluted earnings
per share

Yen
44.21
89.63

Yen
—
—

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
December 31, 2017
1,150,746
559,365
48.0
March 31, 2017
1,114,672
545,559
48.4(Reference) Equity:
As of December 31, 2017: 552,130 million yen As of March 31, 2017: 539,179 million yen

2.

Dividends
First quarter
Yen——

Second quarter
Yen
13.00
13.00

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

Annual dividends
Third quarter
Yen——

Fiscal year-end
Yen
14.00
14.00

Total
Yen
27.00
27.00

3.

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

Operating profit

Millions of yen%
Millions of yen%
Full year
1,530,000
4.3
31,000 (11.1)(Note) Revisions to the forecasts most recently announced: Yes(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
31,000(11.1)
14,500(19.7)
36.78* Notes(1) Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements, (Application of specific accounting for preparing the quarterly consolidated financial statements)” of the attached materials
to the quarterly financial results report on page 13.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of December 31, 2017:
411,339,992 shares
As of March 31, 2017:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of December 31, 2017:
17,063,966 shares
As of March 31, 2017:
17,062,391 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2017:394,276,825 shares
For the nine months ended December 31, 2016:
398,516,345 shares*Quarterly financial results reports are not required to be subjected to quarterly reviews.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For
points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts for
the Nine Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements” of the attached materials to thequarterly financial results report on page 8.
• The Company plans to hold a financial results meeting for analysts on January 31, 2018. 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 Nine Months................................................................... 2(1) Explanation of operating results ........................................................................................................................ 2(2) Explanation of financial position ........................................................................................................................ 8(3) Explanation of consolidated earnings forecasts and other forward-looking statements .................................... 8
2. Consolidated Financial Statements and Significant Notes Thereto .......................................................................... 9(1) Consolidated balance sheet .............................................................................................................................. 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 11
Consolidated statement of income (cumulative)..................................................................................................... 11
Consolidated statement of comprehensive income (cumulative) ........................................................................... 12(3) Notes to consolidated financial statements ..................................................................................................... 13(Notes to premise of going concern) ...................................................................................................................... 13(Notes on significant changes in the amount of shareholders’ equity) ................................................................... 13(Changes in scope of consolidation and equity method application) ...................................................................... 13(Application of specific accounting for preparing the quarterly consolidated financial statements) ........................ 13(Segment information, etc.) .................................................................................................................................... 13
3. Supplementary Information .................................................................................................................................... 15
Operating revenue by business ................................................................................................................................ 15-1-

1. Qualitative Information on Settlement of Accounts for the Nine Months(1) Explanation of operating results
During the nine months ended December 31, 2017, the economic environment was plagued by ongoing
uncertainties ahead due to factors that have included effects of political developments overseas, yet gradualeconomic recovery held course amid underlying strengths in corporate earnings. Moreover, the logistics
industry continues to face a severe business environment partially due to tightening of the domestic labormarket, which is in addition to an upward trend with respect to small parcel volume partially due to expansion of
the 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.” Moreover, we have issued requests to
our large-lot corporate clients that include asking that they adjust their shipping schedules and cut down on
re-deliveries, and at the same time we are making progress in negotiating review of our rates with respect toour corporate clients. Accordingly, many of our clients have already shown their understanding and willingness
to cooperate in this regard, and we continue engaging in such dialogue with those corporate clients with whom
negotiations have been underway. As a result, during the nine months ended December 31, 2017, our financial
performance has remained on path to recovery due to TA-Q-BIN delivery volume taking a downward turn andthe TA-Q-BIN unit price beginning to rise due to our adequate pricing initiatives, despite increasing expenses
incurred largely from promoting our focus on “reforming working styles.”In the non-delivery businesses, results were firm since we took steps to expand our existing service offerings byenlisting the strengths of Group companies, while also drawing on Group-wide ties as we aggressively
promoted solution sales geared toward addressing customers’ business challenges.
Our consolidated financial results for the nine months ended December 31, 2017 are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

For the nine months
ended December 31, 2016
1,118,143
58,06358,263For the nine months
ended December 31, 2017
1,171,775
32,131
32,37835,71917,429ChangeGrowth (%)

53,632(25,931)(25,885)4.8(44.7)(44.4)(18,289)(51.2)

Initiatives for the entire Yamato Groupa.

The Yamato Group has been taking steps on a Group-wide basis to develop an upbeat working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Reforming
Working Styles” established in Yamato Transport Co., Ltd., and its “Working Styles Innovation
Committees” in its respective Group companies, as a means of placing utmost priority on “reforming
working styles” in order to practice “inclusive management,” a Yamato Group founding principle. Moreover,
we have been pursuing our “Value Networking” design, on the basis of creating business models forgenerating a high level of added value through the combined efforts of our respective businesses, while atthe same time contributing to growth strategies and international competitive strengths of the Japanese
economy. Meanwhile, we are also taking steps to forge a robust corporate culture that acts as a foundation
for business creation and development.

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b.

c.

d.

e.

We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we
worked on enhancing the efficiency and dependability of operations, in part by improving our transportsystems and by using our information technology network to enable visual monitoring of operating
volumes. Moreover, we actively engaged in CSR-related activities linked to Yamato Group businessendeavors, such as through environmental and safety measures, and efforts to prosper communities.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we will make more effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Atsugi Gateway,” “Chubu Gateway” and “Okinawa
International Logistics Hub” facilities, as well as “Kansai Gateway” facility, which started its operation in
November, in addition to our existing “last mile” network.
In our business looking toward overseas markets, we have been working to forge collaboration among five
regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening our capabilities
in each geographic region to respond to the growth of cross-border logistics. In this fiscal year, we signed
a comprehensive partnership agreement with the leading specialist for express parcel delivery in France.
The agreement was entered into for the purpose of expanding our cross-border small parcel chilled andfrozen transport business between Japan and France, and contains a cross license agreement for sharing
both companies’ know-how with respect to small parcel chilled and frozen transport. Furthermore, we havebeen 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 acquiringcertification under international standards pertaining to chilled and frozen goods delivery services,
including Vietnam where the Group started handling of Cool TA-Q-BIN services in September.
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, during the nine months ended December 31, 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 by society 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.
(Million parcels / units)
Category
TA-Q-BIN
Kuroneko DM-Bina.
b.

For the nine months
ended December 31, 2016
1,437
1,147

For the nine months
ended December 31, 2017
1,445
1,111

ChangeGrowth (%)
7
(36)

0.5
(3.1)

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
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
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

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c.

d.

e.

f.

g.

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 a framework offive designated time slots for TA-Q-BIN deliveries, from six time slots previously. During the nine months
ended December 31, 2017, we have revised TA-Q-BIN basic fees in October. Moreover, we have issued
requests to our large-lot corporate clients that include asking that they adjust their shipping schedules andcut down on re-deliveries, and at the same time we are making progress in negotiating review of our rates
with respect to our corporate clients. Accordingly, many of our clients have already shown theirunderstanding and willingness to cooperate in this regard, and we continue engaging in such dialogue withcorporate clients with whom negotiations have been underway.
Given expectations for growth in the 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 at
reasonable fees, and proceeded with offering a greater number of drop-off points for sending bycollaborating with multiple flea market websites. During the nine months ended December 31, 2017, wehave 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, andoffering a service environment where customers who have purchased a product are able to specify eithera business office of Yamato Transport Co., Ltd., a convenience store or an open-type parcel locker(PUDO) as a location for pick-up.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. Moreover, we have been working to boost profitability bymaking proposals that provide high added value using the Group’s business resources. During the ninemonths ended December 31, 2017, we have promoted the use of our new “B2 Cloud” shipping label
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 forresidents by collaborating with numerous municipalities and companies in efforts to provide support withregard to helping those who face difficulties doing their shopping and watching over elderly residents.
Moreover, we have also been helping to revitalize local industry through initiatives that include lending
support for enabling communities to achieve higher sales of locally produced products by offering swift
delivery to Asia of perishable goods and other agricultural products in a manner that ensures they stay
fresh.
During the nine months ended December 31, 2017, operating revenue increased amid a higher TA-Q-BIN
unit price as a result of adequate pricing, despite 4.5% negative growth in TA-Q-BIN delivery volume. As aresult, operating revenue amounted to 921,792 million yen for the nine months ended December 31, 2017,
up 3.9% from the year-ago period.
During the nine months ended December 31, 2017, operating profit has remained on path to recovery
amid increasing expenses largely as a consequence of promoting our focus on “reforming working styles.”As a result, operating profit amounted to 9,696 million yen for the nine months ended December 31, 2017,
down 73.2% from the year-ago period.

 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 handling functions, cleansing functions for medical devices and international transportation
functions.
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 nine months ended December 31,
2017, these operations generated favorable results due to factors that included an increased volume ofexisting 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 nine months ended
December 31, 2017, results were firm due to an increase in use of such services among newly gained
customers.

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d.

Operating revenue amounted to 89,479 million yen, up 13.6% from the year-ago period due to favorable
results from existing services for e-commerce business operators. As for profits, the segment posted
operating profit of 3,057 million yen, down 6.5% from the year-ago period due to increased costs ofoutsourcing work in some services such as overseas relocations.

 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, moving-related services and “Comfortable Lifestyle Support Service” which aims to help
customers resolve everyday inconveniences “inside the home.” During the nine months ended December
31, 2017, 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” heading toward the season of year-end demand.
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 nine months
ended December 31, 2017, we have steadily worked on receiving orders for office relocations.
Operating revenue amounted to 35,344 million yen, up 2.4% from the year-ago period, due mainly tofavorable results with respect to use of our “Raku Raku Household TA-Q-BIN” service and “Comfortable
Lifestyle Support Service,” in addition to orders received for one-off business. As for profits, the segment
posted operating loss of 300 million yen, despite an improvement of 163 million yen from the year-ago
period.

 e-Business
a.

b.

c.

d.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively conducting solution platform business that combine logistics technology andfinancial technology with information technology. In addition, with the aim of helping to accelerate growthof Yamato Group businesses, we have been moving beyond conventional information technologies
through efforts geared to promoting use of emerging technologies that harness artificial intelligence (AI),the Internet of things (IoT) and other such innovations.
With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the nine months ended
December 31, 2017, use of this service increased particularly among our existing large-lot customers,
against a backdrop that included e-commerce market growth.
For our customers who mainly make use of pamphlets, catalogs and other such promotional materials intheir marketing activities, we have been developing our e-On Demand Solutions business which involves
providing total solutions in terms of systems for ordering promotional products, warehouse storage,administration, delivery and other logistics functions, and printing. During the nine months ended
December 31, 2017, use of such services increased among newly gained customers and existingcustomers.
Operating revenue amounted to 35,168 million yen, up 4.1% from the year-ago period mainly as a result of
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 8,382 million yen, up
15.1% from the year-ago period.

-5- Financial
a.
b.

c.

d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the nine months ended December 31, 2017, we provided a wide
range of 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 proceeded to combine operations that involve performing calculations with respect to our various
payment settlement services, with the aims of slashing customer costs, streamlining operations andheightening convenience.
In the lease services business, we have been generating favorable results with respect to financial leases
primarily involving trucks and installment sales. We have also been developing peripheral operations that
include providing vehicle referrals and resale support, while forging ahead in making proposals involving
total solutions related to vehicles.
Operating revenue amounted to 62,546 million yen, up 7.8% from the year-ago period, mainly due tofavorable results in the lease services business, although delivery volume of our mainstay service“TA-Q-BIN Collect” declined mainly due to shrinking market for cash-on-delivery. Operating profit was
6,326 million yen, up 1.4% from the year-ago period.

 Autoworks
a.

b.
c.

In the Autoworks Business, the Yamato Group develops its “24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation,” thereby providing value tologistics operations and logistics service providers in the form of “improvement of vehicle maintenanceconvenience” and “reduced maintenance expenses.” Furthermore, to better provide one-stop service
solutions geared toward customer business operations, we have added services for “maintaining andsafeguarding logistics facilities and equipment, and improving such workplace environments,” along with“offering insurance plans tailored to customer risk management needs” which provide coverage for such
assets.
In the nine months ended December 31, 2017, we took steps to expand sales by aggressively marketingout “Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 18,472 million yen, down 0.5% from the year-ago period largely as aresult of sluggish sales of vehicle equipment. Operating profit was 3,518 million yen, up 24.6% from theyear-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 nine months ended December 31, 2017, service use grewsteadily due to favorable results with respect to existing services.
Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
increased 6.0% from the year-ago period to 1,830 million yen.

CSR Initiativesa.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. During the nine months ended December 31, 2017, 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 for

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b.

c.

d.

e.

Children,” 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.
The Yamato Group works to ensure that its distribution mechanisms are environmentally sound, under its
policy of “Nekology” (combining “Kuroneko” with “ecology”) for promoting its environmental conservation
initiatives. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support forenvironmental education of children who will bear responsibilities of the next generation. We have heldsuch classes on an ongoing basis nationwide since 2005, attracting about 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 part intraining to acquire skills and knowledge necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the nine months ended December 31, 2017,
we have been promoting our “combined passenger-cargo” operations using scheduled-route passenger
buses in Iwate prefecture, Miyazaki prefecture, Hokkaido, Kumamoto prefecture, Hyogo prefecture,
Nagano prefecture, Wakayama prefecture, and Tokushima prefecture, thereby helping to improve lifestyleservices for local residents both by keeping scheduled bus networks running in hilly and mountainous
areas where populations are substantially declining and getting older, and also by streamlining distribution
in those locations. We have also initiated verification trial runs of “combined passenger-cargo” operations
using railway through cooperation with the railroad corporation in Gifu prefecture. In addition, we havebeen 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 ofproviding collective delivery services and other aspects 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 to revitalizing communities and resolving issues byleveraging the Yamato Group’s management resources, with respect to initiatives that include helping towatch over elderly residents, supporting tourism, and expanding sales channels for specialty products in
respective regions throughout Japan. As a result, we have worked with government bodies on 2,041 suchendeavors thus far.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on Group-wide initiatives with respect to “reforming working styles” throughdeveloping upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour employees.

-7-(2) Explanation of financial position(Assets, liabilities and net assets)
Total assets were 1,150,746 million yen as of December 31, 2017, up 36,074 million yen from the end of theprevious fiscal year. The major factors in this were increases in notes and accounts receivable - trade of 68,071
million yen and investment securities of 8,115 million yen, despite a decrease of 59,501 million yen in cash anddeposits.
Liabilities increased 22,268 million yen to 591,381 million yen from the end of the previous fiscal year. The
increase was largely attributable to a 38,394 million yen increase in notes and accounts payable - trade,
despite a 16,827 million yen decrease in loans payable.
Total net assets were 559,365 million yen, up 13,806 million yen from the end of the previous fiscal year. Thiswas mainly attributable to an increase in retained earnings of 6,782 million yen due to the recording of profit
attributable to owners of parent of 17,429 million yen and payment of dividends of surplus of 10,645 million yen.
Accordingly, the equity ratio changed to 48.0% from the previous fiscal year’s 48.4%.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Going forward, the economic situation is likely to remain one that is plagued by ongoing uncertainties ahead
due to factors such as effects of political developments overseas, despite the prospect of gradual economic
recovery holding course amid underlying strengths in corporate earnings.
The severe business environment affecting the logistics industry is likely to persist amid factors that include
further tightening of the domestic labor market, amid a continued upward trend with respect to small parcel
volume brought about by rapidly changing styles of consumption and other such trends.
In that environment, we will place a management focus on “reforming working styles” and endeavor to improveand develop the working environment, while in the Delivery Business promoting our “structural reforms in the
Delivery Business.” During the nine months ended December 31, 2017, our financial performance hasremained on a path to recovery as results begin to emerge with respect to changes in our earnings structure,
particularly as a result of our efforts entailing negotiations with our corporate clients largely involving TA-Q-BIN
delivery volumes and review of our rates.
Through reforms currently underway, we are working to keep achieving sustainable growth and enhance
profitability in order to improve corporate value going forward.
The Yamato Group has made changes to the consolidated earnings forecasts for the full fiscal year ending
March 31, 2018, from the previous announcement made on October 31, 2017, upon having taken into accountresults of the nine months ended December 31, 2017.

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

As of December 31, 2017

AssetsCurrent assets
Cash and deposits

230,128

170,627

Notes and accounts receivable - trade208,130

276,202

Accounts receivable - installment

46,141

48,266

Lease investment assets

50,77752,740

Merchandise and finished goods

739

651

Work in process

216

314

Raw materials and supplies

1,818

1,871

Other

49,83961,183

Allowance for doubtful accounts(1,282)(1,230)Total current assets

586,510

610,626

341,134

341,071

Accumulated depreciation(196,244)(201,281)

Buildings and structures, net

144,889

139,789

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

Vehicles

194,073

203,093(177,671)(182,547)

16,401

20,545

Land

178,620

178,263

Lease assets

16,44815,891

Accumulated depreciation(8,446)(8,938)

Lease assets, net

8,001

6,953

158,810

168,341(101,653)(105,133)

Accumulated depreciation
Vehicles, net

Other
Accumulated depreciation
Other, net

57,157

63,207405,070

408,759

21,671

19,764

Investment securities

54,281

62,397

Other

47,91650,060

(778)

(861)

101,420

111,596

528,162

540,119

1,114,672

1,150,746

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

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

(Millions of yen)
As of March 31, 2017

As of December 31, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade155,736

194,130

Short-term loans payable

60,974

51,846

Lease obligations

2,427

2,286

Income taxes payable

14,39910,138Deferred installment income

6,010

6,028

Provision for bonuses

31,948

11,919Provision for special wage payments

15,129—Other

85,222

122,196

Total current liabilities

371,848

398,547

Bonds payable

20,00020,000Long-term loans payable

89,90082,200

Lease obligations

4,866

3,757

Net defined benefit liability

70,952

72,600Other

11,545

14,275

Total non-current liabilities

197,264

192,833

569,113591,381

Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

409,270416,053

Treasury shares(39,077)(39,080)

Total shareholders’ equity

534,241

541,020

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

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

10,975

15,369Foreign currency translation adjustment

(422)

139

Remeasurements of defined benefit plans(5,614)(4,399)Total accumulated other comprehensive income

4,938

11,110

6,379

7,234

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

545,559559,365

1,114,672

1,150,746

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2016

For the nine months ended
December 31, 2017

Operating revenue

1,118,143

1,171,775

Operating cost

1,024,925

1,101,017

Operating gross profit

93,21870,758Selling, general and administrative expenses

35,154

38,626

Operating profit

58,06332,131Non-operating income
Interest income

114

98

Dividend income

675

820

Other

801

883

Total non-operating income

1,592

1,803

Interest expenses

323

213

Share of loss of entities accounted for using equity method

492

907

Other

575

435

Total non-operating expenses

1,392

1,556

58,26332,378Gain on sales of non-current assets

156

155

Gain on sales of investment securities

200

477

Total extraordinary income

357

633

Loss on retirement of non-current assets

150

176

Impairment loss

595

1,653

Disaster recovery expenses for the Kumamoto Earthquake

878

—

3

—

Total extraordinary loss

1,628

1,829

Profit before income taxes

56,992

31,182

Income taxes

21,061

13,442

Profit35,93017,739210

309

35,71917,429Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

Other

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2016

For the nine months ended
December 31, 201735,93017,739Valuation difference on available-for-sale securities

2,154

5,033

Foreign currency translation adjustment(4,469)562

Remeasurements of defined benefit plans, net of tax

2,060

1,214

0

0

(254)

6,810

35,67624,549Comprehensive income attributable to owners of parent

35,252

23,602Comprehensive income attributable to non-controllinginterests

424

947

ProfitOther comprehensive income

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

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in scope of consolidation and equity method application)
Material changes in scope of consolidation
YAMATO (CHINA) CO., LTD. is included in the scope of consolidation effective from the first quarter ended
June 30, 2017, due to being newly established by the Company.
(Application of specific accounting for preparing the quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the third quarter under review.
(Segment information, etc.)[Segment information]
I For the nine months ended December 31, 2016
1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

887,270

78,801

34,517

33,77258,01850,07010,307

11,342

25,9592,293

937,340
36,237

89,1093,269

45,860(463)

59,732
7,282

60,312
6,240

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
18,557
7,205
1,118,143—
1,118,143(2) Inter-segment operating revenue or
22,10554,379176,458(176,458)—
transfers
Total
40,663
61,584
1,294,601(176,458)
1,118,143
Segment profit (loss)
2,824
35,581
90,971(32,908)
58,063
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 34,409 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

2. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
In the BIZ-Logistics segment, the Company has decreased the book value of an asset group with diminishedprofitability to the recoverable value, and has accordingly recorded an impairment loss of 595 million yen for
the nine months ended December 31, 2016.

- 13 -

II For the nine months ended December 31, 2017
1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

921,792

89,47935,34435,16862,54652,411

10,942

11,19329,523

2,175

974,204
9,696

100,4213,057

46,538(300)

64,691
8,382

64,722
6,326

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
18,472
8,971
1,171,775—
1,171,775(2) Inter-segment operating revenue or
23,89737,592
167,736(167,736)—
transfers
Total
42,36946,564
1,339,512(167,736)
1,171,775
Segment profit (loss)
3,518
17,461
48,142(16,010)
32,131
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 17,482 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

2. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
In the Delivery segment and BIZ-Logistics segment, the Company has decreased the book value of asset
groups with diminished profitability to the recoverable values, and has accordingly recorded impairment
losses of 967 million yen and 685 million yen, respectively, for the nine months ended December 31, 2017.

- 14 -

3. Supplementary Information
Operating revenue by business
For the nine months ended For the nine months ended
Fiscal year ended
December 31, 2016
December 31, 2017
March 31, 2017
ChangeBusiness segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
811,757
72.6
845,34672.1
4.1
1,047,668
71.4
Kuroneko DM-Bin
63,818
5.7
62,4095.3(2.2)
85,383
5.8
Express
32,083
2.9
32,0922.7
0.0
42,272
2.9
Delivery
Others73,378
6.6
78,377
6.7
6.8
99,497
6.8
Eliminations(93,768)(8.4)(96,433)(8.2)
2.8(123,793)
(8.4)
Total
887,270
79.4
921,792
78.7
3.9
1,151,028
78.5
Trading logistics service
24,651
2.2
28,401
2.4
15.2
35,583
2.4
Sales and Logistics
30,161
2.7
34,5492.9
14.5
40,3902.8
Multi maintenance
9,999
0.9
10,8680.9
8.7
13,9160.9
BIZ-Logistics Products Logistics
3,250
0.3
3,575
0.3
10.0
4,390
0.3
Others
32,6772.9
35,5173.0
8.7
43,637
3.0
Eliminations(21,939)(2.0)(23,431)(2.0)
6.8(29,275)
(2.0)
Total
78,801
7.0
89,4797.6
13.6
108,643
7.4
Home convenience
28,8092.6
29,8142.5
3.5
42,016
2.9
Business convenience
14,217
1.3
13,384
1.1(5.9)
17,847
1.2
HomeTechnical
Network
2,870
0.3
3,380
0.3
17.8
3,951
0.3
Convenience
Eliminations(11,378)(1.1)(11,235)
(1.0)
(1.3)
(14,651)
(1.0)
Total
34,517
3.1
35,3443.0
2.4
49,1633.4
e-logistics solution
8,684
0.8
9,229
0.8
6.3
11,4650.8
Credit card solution
7,066
0.6
7,379
0.6
4.4
9,711
0.7
IT operating*
5,073
0.5
5,249
0.4
3.5
6,834
0.5
Web-based mail ordere-Business
4,474
0.4
4,416
0.4
(1.3)
5,625
0.4
solution
Others40,607
3.6
41,346
3.5
1.8
53,954
3.7
Eliminations(32,133)(2.9)(32,453)(2.8)
1.0(41,952)
(2.9)
Total
33,7723.0
35,1683.0
4.1
45,639
3.1
Payment
28,124
2.5
27,066
2.3(3.8)
37,4032.5
Lease
26,6402.4
30,0982.6
13.0
36,0402.5
Credit & Finance
2,784
0.2
2,851
0.2
2.4
3,650
0.2
Financial
Others
2,824
0.3
4,766
0.4
68.8
4,021
0.3
Eliminations(2,355)(0.2)(2,236)(0.2)(5.1)(3,131)(0.2)
Total
58,018
5.2
62,546
5.3
7.8
77,985
5.3
Truck solution
36,782
3.3
37,6873.2
2.5
47,472
3.2
Others
5,859
0.5
6,756
0.6
15.3
7,888
0.5
Autoworks
Eliminations(24,084)(2.1)(25,971)(2.2)
7.8(30,746)
(2.1)
Total
18,5571.7
18,472
1.6(0.5)
24,613
1.7
JITBOX Charter service
6,726
0.6
7,650
0.7
13.7
9,126
0.6
Others
57,0005.1
41,382
3.5(27.4)
63,9844.4
Other
Eliminations(56,521)(5.1)(40,062)(3.4)(29.1)(63,333)
(4.3)
Total
7,205
0.6
8,971
0.8
24.5
9,777
0.7
Total
1,118,143
100.0
1,171,775
100.0
4.8
1,466,852
100.0* Effective from the first quarter of the fiscal year ending March 31, 2018, the name of the IT operating solution category in the e-Businesssegment has been changed to the IT operating.

- 15 -