Translation

April 30, 2014

Consolidated Financial Results for the Year Ended March 31, 2014
<under Japanese GAAP>
Company name:
Listing:
Stock code:
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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 ordinary general meeting of shareholders: June 24, 2014
Scheduled date of the commencement of dividend payment:
June 3, 2014
Scheduled date of the submission of annual securities report:
June 20, 2014
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2014 (from April 1, 2013 to March 31, 2014)(1) Consolidated operating results
Operating revenue

Operating income(Percentages indicate year-on-year changes.)
Ordinary income
Net income

For the year ended Millions of yen% Millions of yen%
Millions of yen
March 31, 2014
1,374,610
7.2
63,096(4.7)
64,664
March 31, 2013
1,282,373
1.7
66,202(0.7)
67,991(Note) Comprehensive income:For the year ended March 31, 2014: 39,225 million yen (0.7 %)For the year ended March 31, 2013: 38,954 million yen (86.9 %)Net income pershare

Net income pershare - fully diluted

%
(4.9)
0.1

Millions of yen
34,77635,144

Ratio of ordinary
income to total
assetsReturn on equity

For the year ended
Yen
Yen
%
March 31, 2014
82.22
80.18
6.4
March 31, 2013
81.85
79.84
6.7
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2014: — million yen
For the year ended March 31, 2013: — million yen

%
6.5
7.3

%
(1.0)
77.6

Ratio of operating
income to operating
revenue%
4.6
5.2(2) Consolidated financial position
Total assets
As ofMarch 31, 2014
March 31, 2013
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
1,032,134
560,17253.4
950,152
542,91456.2
As of March 31, 2014: 551,379 million yen
As of March 31, 2013: 534,451 million yen

Yen
1,316.12
1,261.35(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2014
March 31, 2013

Millions of yen
80,07573,949Cash flows frominvesting activities
Millions of yen(64,935)(50,539)

Cash flows fromfinancing activities
Millions of yen(9,033)(21,022)

Cash and cash equivalents
at end of period
Millions of Yen
219,395
212,641

2.

Dividends
Annual dividendsFirstquarter

SecondquarterYen

Thirdquarter

Fiscalyear-end

Fiscal 2013
Fiscal 2014

—
—

Yen
11.00
12.00

—
—

Yen
12.00
12.00

Yen
23.00
24.00

Fiscal 2015
(Forecast)

—

12.00

—

12.00

24.00

3.

Yen

Total

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
9,816
10,111

%
28.1
29.2

%
1.9
1.9

24.5

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

Half year
Full year

Millions of yen
688,000
1,437,000

Operating income
%
4.9
4.5

Millions of yen
21,00070,000%(10.1)
10.9

Ordinary income
Millions of yen
21,50071,000(Percentages indicate year-on-year changes.)Net
Net income
incomeper share%(10.1)
9.8

Millions of yen
11,50041,000

%
(7.1)
17.9

Yen
27.45
97.87

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Yesb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “4. Accounting policies, (4) Method of accounting for retirement benefits” of the attached materials to thefinancial results report on page 25.

(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2014:
454,684,992 shares
As of March 31, 2013:
461,345,492 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2014:
35,742,057 shares
As of March 31, 2013:
37,631,001 sharesc. Average number of shares during the period
For the year ended March 31, 2014:
422,941,014 shares
For the year ended March 31, 2013:
429,377,413 shares(Note) For details of the number of shares used to calculate consolidated net income per share, please refer to “Per Share Information”
on page 46.

(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for fiscal year 2014 (from April 1, 2013 to March 31, 2014)(1) Non-consolidated operating results
Operating revenue
For the year ended
March 31, 2014
March 31, 2013

Millions of yen
29,197
22,697(Percentages indicate year-on-year changes.)
Ordinary income
Net income

Operating income
%
28.6
60.2

Millions of yen
24,407
18,373

Net income per share
For the year ended
March 31, 2014
March 31, 2013

Yen
49.16
29.10

%
32.8
65.8

Millions of yen
25,343
19,188

%
32.1
61.5

Millions of yen
20,791
12,497

%
66.4
29.6

Net income per share - fully diluted
Yen
47.94
28.39

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

As ofMillions of yen
Millions of yen%
March 31, 2014
489,597
383,650
78.4
March 31, 2013
466,899
380,996
81.6(Reference) Equity: As of March 31, 2014: 383,650 million yen
As of March 31, 2013: 380,996 million yen

Net assets per shareYen
915.76899.18* Indication regarding execution of audit procedures

At the time of the disclosure of this financial results report, the audit 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 “Analysis of operating results and financial position” onpages 5 to 10.
• The Company plans to hold a financial results meeting for analysts on May 1, 2014. The materials distributed at this financial results meetingshall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index
1. Analysis of Operating Results and Financial Position ............................................................................................. 5(1) Analysis of operating results ............................................................................................................................. 5(2) Analysis of financial position ............................................................................................................................. 9(3) Basic profit distribution policy and dividends for fiscal 2014 and 2015 ............................................................ 10
2. Status of the Corporate Group .............................................................................................................................. 11
3. Management Policy............................................................................................................................................... 13(1) Basic corporate management policies, medium- to long-term corporate management strategies and target
management indicators ................................................................................................................................... 13(2) Target management indicators and medium- to long-term corporate management strategies........................ 13(3) Issues to be addressed by the Company ........................................................................................................ 13
4. Consolidated Financial Statements ....................................................................................................................... 14(1) Consolidated balance sheet ............................................................................................................................ 14(2) Consolidated statement of income and consolidated statement of comprehensive income ........................... 17(3) Consolidated statement of changes in equity .................................................................................................. 20(4) Consolidated statement of cash flows ............................................................................................................. 22(5) Notes to consolidated financial statements ..................................................................................................... 24(Notes to premise of going concern) ..................................................................................................................... 24(Significant matters forming the basis of preparing the consolidated financial statements) .................................. 24(Consolidated balance sheet) ............................................................................................................................... 26(Consolidated statement of income)...................................................................................................................... 27(Consolidated statement of comprehensive income) ............................................................................................ 28(Consolidated statement of changes in equity) ..................................................................................................... 28(Consolidated statement of cash flows) ................................................................................................................ 30(Segment Information) .......................................................................................................................................... 30(Tax Effect Accounting) ......................................................................................................................................... 35(Financial Instruments).......................................................................................................................................... 36(Securities) ............................................................................................................................................................ 41(Retirement Benefit) .............................................................................................................................................. 43(Per Share Information) ......................................................................................................................................... 46(Important Subsequent Matters)............................................................................................................................ 46(Other Notes, etc.)................................................................................................................................................. 46
5. Others ................................................................................................................................................................... 47
Operating revenue by business ............................................................................................................................ 47
6. Non-consolidated Financial Statements ................................................................................................................ 48(1) Non-consolidated balance sheet ..................................................................................................................... 48(2) Non-consolidated statement of income ........................................................................................................... 50(3) Non-consolidated statement of changes in equity ........................................................................................... 51-4-

1. Analysis of Operating Results and Financial Position(1) Analysis of operating results
With respect to the business environment during the fiscal year ended March 31, 2014, the internet mail-ordermarket continued to expand, while consumer spending, corporate earnings and employment showed signs ofrecovery. Meanwhile, in the fourth quarter consumer spending gained further momentum fueled by last-minutedemand emerging ahead of the consumption tax hike. Operating in this environment, the Yamato Group
worked to establish new networks that will realize a revolution in logistics, create new services, and achieve
greater sophistication of its existing businesses in order to achieve the objectives of the Long-Term
Management Plan “DAN-TOTSU Management Plan 2019” and the Medium-Term Management Plan
“DAN-TOTSU Three-Year Plan HOP.”
In the Delivery Business, revenues steadily climbed due to a significant increase in TA-Q-BIN delivery volumes
amid growth in the internet mail-order market and surging demand ahead of the consumption tax hike.
Nevertheless, earnings declined as a consequence of greatly increased one-time expenses incurred for
initiatives that included building a framework to improve “Cool TA-Q-BIN” quality, setting up collection anddelivery mechanisms in line with increasing TA-Q-BIN delivery volumes, and addressing issues caused byheavy record-level snowfalls in February.
In the non-delivery businesses, we provided a diverse range of services drawing on various managerial
resources with respect to information, logistics and transaction settlement. At the same time, we aggressively
pursued proposal-based sales through alliances with respective Group companies, with the aim of helping
corporate clients find solutions to management challenges.
As a result, our consolidated financial results for the year ended March 31, 2014 were as follows.
Item

Fiscal 2013

Fiscal 2014

(Millions of yen)
Growth (%)

ChangeOperating revenue

1,282,373

1,374,610

92,236

7.2

Operating income

66,20263,096(3,106)(4.7)

Ordinary income

67,99164,664(3,327)(4.9)

Net income

35,144

34,776

(368)

(1.0)

During the fiscal year ended March 31, 2014, we repurchased treasury shares of 4.76 million shares, for a totalacquisition cost of about 10.0 billion yen, and retired 6.66 million shares of treasury shares as measures forshareholder return, based on a resolution passed at the Board of Directors meeting on January 29, 2014.
Initiatives for the entire Yamato Group
a.

b.

c.

In order to contribute to growth strategies for the Japanese economy, the Yamato Group is promoting
strategies based on a “Value Networking” design that will bring about a revolution in logistics. We are also
involved in establishing partnership platforms with government bodies and other companies as part ofinitiatives aimed at revitalizing local communities throughout Japan.
Under strategies pursued based on our “Value Networking” design, we completed multiple large-scale
projects such as our “Haneda Chronogate” and “Atsugi Gateway” facilities, and otherwise took steps tooverhaul our network infrastructure. Meanwhile, in the Southeast Asian region we established YAMATO
ASIA PTE. LTD. to act as a headquarters in that region, and otherwise hastened the pace of businessdevelopment while strengthening governance practices. With respect to services, we expanded ourinternational transportation offerings beginning with our “International Cool TA-Q-BIN” services, andotherwise endeavored to create new value through logistics.
To establish platforms that will facilitate partnerships with government bodies and other companies, we
engaged in wide-ranging efforts that involved making Yamato Group managerial resources andcapabilities available by engaging in initiatives that include providing services for the elderly involving
shopping on their behalf and checking on their well-being, supporting the tourism industry, and concluding
disaster cooperation agreements with numerous local government bodies.

-5-Summary of each operating segment● Delivery
The delivery volumes of TA-Q-BIN and Kuroneko Mail services were as follows.
Category

Fiscal 2013

Fiscal 2014

(Million parcels/units)
Growth (%)

ChangeTA-Q-BIN

1,487

1,665

178

12.0

Kuroneko Mail

2,112

2,084

(28)

(1.3)

a.
b.

c.

d.

e.

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business evolution,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
To address our failure to fully implement in-house rules for the “Cool TA-Q-BIN” delivery service, whichcame to light in October last year, we have taken steps to ensure sound temperature control in part byestablishing a division with full-time employees dedicated to the task of maintaining and improving service
quality, and also by encouraging adoption of requisite equipment and supplies. We also worked toward
systemic improvements in order to facilitate better delivery quality, even at times when grappling withconsiderable increases in TA-Q-BIN delivery volumes.
The Yamato Group took steps to provide individual customers with greater convenience through ourservices. For instance, we have made it possible for customers of our “Kuroneko Members” service tochange delivery receipt dates and times through our online parcel inquiry system, and we have also
increased the number of convenience store locations where customers can pick up their TA-Q-BIN
deliveries.
TA-Q-BIN delivery volumes increased significantly with respect to corporate clients. This was partially aresult of using our Group-wide capabilities to simultaneously provide TA-Q-BIN shipping services andvarious forms of added value, and also due to factors such as an expanding internet mail-order market
and the emergence of last-minute demand running up to the consumption tax increase.
Operating revenue amounted to 1,098,692 million yen, up 6.9% from the year-ago period, as a result of alarge increase in TA-Q-BIN delivery volume. Operating income amounted to 35,873 million yen, down
14.4% from the year-ago period, as a consequence of greatly increased one-time expenses such asbuilding a framework to improve “Cool TA-Q-BIN” quality, setting up collection and delivery mechanisms inline with increasing TA-Q-BIN delivery volumes, and addressing issues caused by heavy record-levelsnowfalls in February.

● BIZ-Logistics
a. In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with international transportation
functions and logistics functions.
b. For corporate clients requiring international transportation, the Yamato Group provides a variety ofservices, including air and sea transportation services, small-lot international intermodal transportation
service that is interlinked with the TA-Q-BIN network, as well as a packaging and customs services.
During the fiscal year ended March 31, 2014, we made moves to further strengthen our international
logistics capabilities, such that involved establishing the “Akita Ryutsu Trinity Center” and the “Keihinjima
Ryutsu Trinity Center,” both of which are designed to support small- and mid-sized companies in theirglobal expansion efforts.
c. With respect to the Yamato Group's services geared toward the mail-order industry andbusiness-to-business delivery and procurement logistics, we have been expanding into wide ranging
services designed to address customer demands such that include offering shipping services, providing
support for placing and accepting orders, and enabling customers to visually monitor product inventories.
During the fiscal year ended March 31, 2014, we strove to broaden our scope of business through efforts
that included introducing our proprietary “FRAPS” logistics system, which is designed to realize“shortening lead times” and “distribution inventory reduction,” in new Yamato Group facilities such as“Haneda Chronogate,” “Atsugi Gateway” and “Kumamoto flow-through center.”d. Operating revenue amounted to 90,254 million yen, up 4.0% from the year-ago period mainly due to theincreased use of services by the mail-order industry and by the pharmaceuticals and medical devices-6-related industries, despite a decline in the delivery volume of trade freight. Operating income was 3,403
million yen, down 16.9% from the year-ago period as our efforts to reduce subcontracting expenses were
not enough to cover the decline in the delivery volume of trade freight.
● Home Conveniencea. In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives by providing lifestyle support services that draw on the YamatoGroup’s nationwide network.
b. With respect to individual customers, the Yamato Group has been expanding its services for providing
daily lifestyle support such as our “Raku Raku Household TA-Q-BIN” service for delivering large furniture
items and home appliances, and our moving-related services. During the fiscal year ended March 31,
2014, we launched sales initiatives with respect to our “Comfortable Lifestyle Support Service” whichhelps customers eliminate everyday inconveniences involving house cleaning and collection of unwanted
items.
c. With respect to services for corporate clients, we provide office relocation services, event support
services, as well as delivery and installation agent services involving consumer durables and products.
Over the fiscal year ended March 31, 2014, we have been offering services entailing solutions platforms
tailored to customer needs such as in the areas of logistics processing, installation and maintenanceinvolving household and commercial equipment.
d. Operating revenue amounted to 48,723 million yen, up 9.2% from the year-ago period as a result of
expansion of our delivery and installation-agent services for mail-order firms and equipment
manufacturers. Operating income was at 217 million yen, thereby marking a shift into positive territory for
an improvement of 744 million yen from the year-ago period.
● e-Businessa. In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively proposing solutions that combine logistics technology and financial
technology functions with information technology function.
b. With respect to services to assist with mail-order operations, the Yamato Group offers functions tocomprehensively support various operations from website construction to receipt of product orders,dispatch information processing, printing of delivery slips and freight tracking. In the fiscal year ended
March 31, 2014, in sales of order management and sales support systems, there was firm growth in newusers.
c. In the e-money related services, the Yamato Group offers solutions through collaboration between thee-Business and the Financial Business. It has been promoting installation and operation of a “Multie-money Settlement Terminal” that allows settlement by multiple types of e-money with a single device. In
the fiscal year ended March 31, 2014, we worked to further expand our e-money related services throughinitiatives that included increasing terminal sales to food and drink industry customers and other clientsand taking part in trials of e-money settlement systems installed in amusement facilities.
d. Operating revenue amounted to 41,537 million yen, up 12.1% from the year-ago period, largely due to thegrowth of the mail-order related services and the e-money related services. Operating income was 7,954
million yen, up 13.8% from the year-ago period.
● Financial
a. In the Financial Business, the Yamato Group is endeavoring to respond to every means of payment
settlement to meet the needs of customers from payment collection on mail-order product delivery to B2Btransaction settlement.
b. With respect to our internet mail-order market customers, in addition to providing our mainstay product“TA-Q-BIN Collect,” we also pushed to expand sales with 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. Throughout the fiscal year ended March 31, 2014,
we worked to offer better service content through efforts that included expanding capabilities of our“Kuroneko Web Collect” service with the addition of a “repeat-user settlement function” and a “layaway

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c.

d.

e.

purchase function,” and also by providing an e-money settlement terminal rental service that provides
temporary use of such units at sales events.
In the area of business-to-business settlement services, we have been developing the “Kuroneko Anshin
Settlement Service” which is designed to assist sellers in their efforts to expand sales channels and better
enable buyers to perform credit transactions, while also providing value by improving business efficiency
and reducing risks associated with debt collection. During the fiscal year ended March 31, 2014,
performance of our B2B settlement services in terms of total handling volume and operating revenue forthe year ended March 31, 2014 surpassed that of the year-ago period. This was partially a result of efforts
geared toward improving the services by speeding up buyer screening and enabling users to submit
applications online, and also due to initiatives in conjunction with the Delivery Business in promoting theservices to our current base of participating stores.
In our lease services business, we draw mainly on our truck leasing capabilities in our efforts to provide
management support tailored to transportation companies and distribution-related entities. During the
fiscal year ended 31, 2014, we helped our customers expand their operations through efforts that
included collaborating with the Autoworks Business in introducing our customers to quality,
fully-maintained, pre-owned trucks, and by delivering services for ensuring safety, environmental
conservation and quality enhancement.
Operating revenue amounted to 62,727 million yen, up 10.6% from the year-ago period, mainly owing to
the increased volume of TA-Q-BIN Collect and the increased number of e-money settlement transactions
due to the increased number of businesses with large mail-order companies. Operating income was
9,405 million yen, up 10.4% from the year-ago period.

● Autoworks
a. Effective from the fiscal year ended March 31, 2014, Truck Maintenance has been renamed Autoworks.
b. In the Autoworks Business, the Yamato Group is offering primarily customers who use trucks, buses andother vehicles in their operations the value of improved vehicle maintenance convenience, compliancewith statutory vehicle inspections, and reduced maintenance expenses. Furthermore, to better provide
one-stop service solutions geared toward customer business operations, we have added services formaintaining and safeguarding logistics facilities and equipment along with insurance agency services
where we offer insurance plans tailored to customer needs.
c. In the fiscal year ended March 31, 2014, there was steady growth in numbers of vehicles serviced due inpart to increased business for a “24-hours-a-day, 365-days-a-year service that enables customers toservice their vehicles without stopping operation,” and also owing to a firm increase in use of our“12-Month Fixed-Price Maintenance Package,” a service which evens out monthly vehicle maintenanceexpenses. We also launched operations of our Nagoya Plant, promoted sales of a simplified digitaltachograph, expanded business involving basic vehicle repair, inspection and other such services which
are performed on-site at customer business locations, and otherwise worked toward hastening expansionof business with respect to both facilities and services.
d. Operating revenue amounted to 25,650 million yen, up 10.4% from the year-ago period due to anincrease in the number of vehicles serviced. Operating income was 3,272 million yen, up 22.7% from theyear-ago period.
● Othera. The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of
its Group network consisting of multiple companies and provides value to customers through timely
delivery and frequent, right-volume delivery. In the fiscal year ended March 31, 2014, handling volume
increased steadily, mainly as a result of growth in service usage by customers including manufacturing
companies and an increase in transportation orders related to events.
b. Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 6.3% from the year-ago period to 955 million yen.
CSR Initiatives
a. The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the fiscal year ended March 31, 2014, a total of more than 2.3 million people have now

-8-

b.

c.

d.

participated in the “Safety Classes for Children” that the Group has continuously conducted as an
initiative to provide a local community-oriented service. In addition, the Group promoted various initiatives
such as conducting the “Zero Accident Campaign” which is a safety campaign deployed horizontally
throughout the entire group, and the introduction and expansion of on-board systems designed withsafety in mind.
The Yamato Group has formulated “Nekology” (combining “Kuroneko” with “ecology”), which is anenvironmental protection philosophy and guideline for environmental activities for the entire Group, and istaking the initiative to proactively promote environmental protection activities. During the fiscal year ended
March 31, 2014, the Group embarked on various initiatives premised on our “Nekology” philosophy, evenexhibiting at Japan’s largest environmental trade fair, “Eco-products 2013,” in order to communicate
details of such initiatives to wider audience and so that we can engage in activities geared toward
protecting the environment together with local communities.
Aspiring to be a company that has a strong bond of trust with the local community, the Yamato Group
promotes various activities to help realize a society in which disabled people can freely enjoy a lifestyle asa member of the workforce. For example, led by Yamato Welfare Foundation, we actively employ disabled
people in the Swan Bakery that makes and sells bread, provide workplaces through the consigneddelivery of Kuroneko Mail, and operate job-finding support facilities that conduct training of skills andknowledge necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promoted initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the fiscal year ended March 31, 2014, theYamato Group worked in collaboration with local governments on more than 550 separate occasions in
the course of providing services that draw our managerial resources. In this regard, our efforts included
keeping a protective eye on elderly citizens and lending support to the tourism industry.

Outlook for fiscal 2015
Looking ahead at the economy, we envisage some downside in the Japanese economy on the one hand as itrecoils in the wake of last-minute demand arising ahead of the consumption tax hike, yet we also anticipate
gradual recovery centered on consumer spending in line with factors such as an improving employment
environment. Still, the overseas economic outlook is bound to remain uncertain.
In this environment, the Yamato Group will take steps to establish a base for revenue generation throughefforts of our Delivery Business to increase delivery volumes primarily in the corporate market, and by pursuing
initiatives that bring about better service quality and ensure our receipt of adequate fees. In the non-delivery
business, we will expand the revenue base by continuing to creating new businesses and further reinforce
solution sales to accelerate our growth potential.
On the cost front, we aim to enhance our cost competitiveness by further pursuing reforms in the pickup anddelivery operations tailored to regional characteristics, while improving productivity.
We expect operating revenue will be 1,437.0 billion yen, with operating income at 70.0 billion yen, ordinary
income at 71.0 billion yen and net income at 41.0 billion yen.
(2) Analysis of financial position
a. Analysis of assets, liabilities, net assets and cash flows
Total assets were 1,032,134 million yen as of March 31, 2014, up 81,981 million yen from the end of theprevious fiscal year. The major factors in this were increases in notes and accounts receivable - trade of
24,355 million yen and in property, plant and equipment of 33,970 million yen mainly due to construction of
the “Haneda Chronogate” and “Atsugi Gateway” facilities.
Liabilities were 471,961 million yen as of March 31, 2014, up 64,723 million yen from the end of theprevious fiscal year. The major factors behind this increase were increases in notes and accounts payable- trade of 34,174 million yen and in loans payable of 16,654 million yen.
Total net assets were 560,172 million yen, up 17,257 million yen from the end of the previous fiscal year.
The major factor included 34,776 million yen in net income, 10,169 million yen in dividends of surplus andthe repurchase of treasury shares of 10,011 million yen.
Accordingly, the equity ratio decreased by 2.8% from the end of the previous fiscal year to 53.4%.

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Net cash provided by operating activities amounted to 80,075 million yen, which is an increase of 6,125
million yen compared to the previous fiscal year. The major factors here included 65,882 million yen in net
income before income taxes and minority interests and 42,283 million yen in depreciation, which combined
generated a 5,938 million yen increase in cash inflows over the previous fiscal year.
Net cash used in investing activities was 64,935 million yen, which is an increase of 14,396 million yen
compared to the previous fiscal year. The major reason for the year-on-year difference was an increase in
cash used for the purchase of property, plant and equipment of 65,211 million yen, an increase of 18,113
million yen compared to the previous fiscal year, partially for the “Haneda Chronogate” and “Atsugi
Gateway” construction projects.
Net cash used in financing activities was 9,033 million yen. The amount of net cash used decreased by
11,989 million yen compared to the previous fiscal year. The year-on-year decrease is largely attributable
to a more favorable net balance of loans payable, which stood at 16,140 million yen for an improvement of
12,505 million yen compared to the previous fiscal year.
As a result, cash and cash equivalents were 219,395 million yen as of March 31, 2014, up 6,753 million
yen from the end of the previous fiscal year.
b.

Trends in cash flows
145th term
Fiscal 2010

146th term
Fiscal 2011

147th term
Fiscal 2012

148th term
Fiscal 2013

149th term
Fiscal 2014

Equity ratio (%)

58.4

57.3

56.0

56.2

53.4

Equity ratio on market value basis (%)

67.9

63.0

59.8

77.6

90.3

Ratio of interest-bearing debts to cash flows

1.1

1.2

1.3

1.3

1.3

Interest coverage ratio

44.1

57.9

57.0

75.8

110.5

Note:

-

Equity ratio: Equity/total assets
Equity ratio on market value basis: Stock market capitalization/total assets
Ratio of interest-bearing debts to cash flows: Interest-bearing debts/operating cash flows
Interest coverage ratio: Operating cash flows/interest payment
Every indicator is calculated based on consolidated financial figures.
Stock market capitalization is calculated by multiplying closing stock price at fiscal year-end by the number of shares issued at
fiscal year-end (excluding treasury shares).
Operating cash flows represent cash flows from operating activities in the consolidated statements of cash flows.
Interest-bearing debts represent the liabilities in the consolidated balance sheet on which interest is paid.
Interest payment represents interest expenses paid in the consolidated statements of cash flows.

(3) Basic profit distribution policy and dividends for fiscal 2014 and 2015
As a pure holding company, the Company conducts its business with the goal of maximizing the entire Group’s
corporate value. Accordingly, with respect to the dividends from surplus, the Company’s policy is to pay
dividends with the goal of having a payout ratio of 30% of consolidated net income. Retained earnings are used
to facilitate the growth of the Group as a whole through capital expenditure—to strengthen the network, one ofour management resources, and develop new businesses and products, for example—and investments are
aimed at raising the corporate value in the future. Finally, the use of treasury shares is strategically positioned
for flexible utilization, such as M&A, as a part of our capital policy.
For the fiscal year under review, we plan to pay a 12 yen dividend per share, bringing the annual dividend to 24
yen, of which 12 yen has already been disbursed as an interim dividend. We will decide on dividends for the
next fiscal year based on consolidated net income in accordance with our basic profit distribution policy.

- 10 -

2. Status of the Corporate GroupThe Yamato Group consists of Yamato Holdings Co., Ltd. (the Company), 44 subsidiaries and 3 affiliates. The main
businesses are Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial
business, Autoworks business, and other services related to these businesses.
The relationship among contents of business, the position of each subsidiary or affiliate in aforementioned
businesses and reportable segments are as follows:Businesssegment
DeliveryContent of business and main products

Main companies

TA-Q-BIN, Cool TA-Q-BIN, TA-Q-BIN Time Service,Worldwide Delivery Service, Golf, Ski & Airport Round Trip
TA-Q-BIN, Super-Speed TA-Q-BIN, Kuroneko Mail,domestic air cargo transport and Express Delivery Service

Yamato Transport Co., Ltd.; Okinawa Yamato Transport
Co., Ltd.; Yamato Global Express Co., Ltd.; Express
Network Co., Ltd.; Yamato (China) Transport Co., Ltd.;
Yamato Transport (HK) Ltd.; and one other company(Total: 7 companies)
Yamato Logistics Co., Ltd.; Yamato Global Logistics Japan
Co., Ltd.; Yamato Multi-Maintenance Solutions Co., Ltd.;
Yamato Packing Service Co., Ltd.; Yamato Packing
Technology Institute Co., Ltd.; Konan Industry Co., Ltd.;YAMATO TRANSPORT U. S. A., INC.; YAMATO
TRANSPORT EUROPE B. V.; Yamato International
Logistics Co., Ltd.; Yamato International Logistics (HongKong) Ltd.; TAIWAN YAMATO INTERNATIONALLOGISTICS INC.; YAMATO TRANSPORT (S) PTE.
LTD.*2; YAMATO TRANSPORT (M) SDN. BHD. and fourother companies(Total: 17 companies)
Yamato Home Convenience Co., Ltd.

BIZ-Logistics

Logistics, medical products distribution services,
Maintenance Support Service, recall support service,international intermodal transportation service andoverseas lifestyle support services

Home
Convenience

Pickup, delivery and installation of household goods andelectric appliances, moving and lifestyle support services,and merchandising services
System development, sales of system package solutions,distribution information services and information security
service(Total: 1 company)
Yamato System Development Co., Ltd.; Yamato Web
Solutions Co., Ltd.*3; Yamato Contact Service Co., Ltd.;and one other company(Total: 4 companies)
Financial
TA-Q-BIN Collect service, Internet total settlement service, Yamato Financial Co., Ltd.; Yamato Lease Co., Ltd.;B2B logistics settlement service and comprehensive lease Yamato Credit & Finance Co., Ltd.; Yamato Payment
services
Service (HK) Ltd.; and one other company(Total: 5 companies)
Autoworks*1
Vehicle maintenance business, fuel sales and nonlife
Yamato Autoworks Co., Ltd.; Yamato Autoworks Iwate Co.,
insurance agent businessLtd.; Yamato Autoworks Hokushinetsu Co., Ltd.; Yamato
Autoworks Shikoku Co., Ltd.; Yamato Autoworks Okinawa
Co., Ltd.
(Total: 5 companies)
Other
JITBOX Charter, staffing services and shared services
Yamato Holdings Co., Ltd.; YAMATO ASIA PTE. LTD.*4;
BoxCharter Co., Ltd.; Yamato Box Charter Co., Ltd.;
Yamato·Staff·Supply Co., Ltd.; Yamato Management
Service Co., Ltd.; Yamato Multi Charter Co., Ltd.; Kobe
Yamato Transport Co., Ltd.; and one other company(Total: 9 companies)*1 Autoworks has changed its segment name from Truck Maintenance effective April 1, 2013.
*2 On January 1, 2014, YAMATO TRANSPORT (S) PTE. LTD. (renamed from YAMATO ASIA PTE. LTD. as of January 1, 2014), which is thesurviving company, implemented an absorption-type merger and the two companies YAMATO TRANSPORT (S) PTE. LTD. and YAMATOPAYMENT SERVICE (S) PTE. LTD., were absorbed in the merger.
*3 Yamato Web Solutions Co., Ltd. changed its corporate name from Yamato Career Service Co., Ltd. effective August 1, 2013.
*4 On January 1, 2014, YAMATO RHQ DEVELOPMENT PTE. LTD. was renamed YAMATO ASIA PTE. LTD., which acts as the regional
headquarters for Southeast Asia.
e-Business- 11 -

The business structure diagram of the corporate group is as follows:
YAMATO ASIA PTE.LTD.

Yamato Holdings Co., Ltd.

Controlling business in Southeast Asia

Okinawa Yamato Transport Co., Ltd.

Mutualtransport

Yamato Global Express Co., Ltd.
Express Network Co., Ltd.

Delivery BusinessYamato Transport Co., Ltd.
Mutual transport
Yamato (China) Transport Co., Ltd.
Yamato Transport (HK) Ltd.

Mutualtransport

Planning and proposal
Packing materials

Mutualtransport

BIZ-Logistics Business
Domestic

Yamato Dialog & Media Co., Ltd.

Transport, collection andlease

Merchandise marketing

Home Convenience Business

Financial BusinessYamato Home Convenience Co., Ltd.

Yamato Financial Co., Ltd.
Yamato Lease Co., Ltd.
Yamato Credit & Finance Co., Ltd
Yamato Payment Service (HK) Ltd.

Yamato Logistics Co., Ltd.
Yamato Global Logistics Japan Co., Ltd.
Yamato Multi-Maintenance Solutions
Co., Ltd.
Yamato Packing Service Co., Ltd.
Yamato Packing Technology InstituteCo., Ltd.
Konan Industry Co., Ltd.

System development
and contract calculation

Overseas

President Collect Service Co.,Ltd.

System Development
and contract calculation

YAMATO TRANSPORT U. S. A., INC.
YAMATO TRANSPORT EUROPE B. V.
Yamato International Logistics Co., Ltd.
Yamato International Logistics (HongKong) Ltd.
TAIWAN YAMATO INTERNATIONALLOGISTICS INC.
YAMATO TRANSPORT (S) PTE. LTD.
YAMATO TRANSPORT (M) SDN. BHD.

e-BusinessYamato System Development Co., Ltd.
Yamato Web Solutions Co., Ltd.
Yamato Contact Service Co., Ltd.
System development
and contract calculation

ISS Co., Ltd.

YAMATO LOGISTICS INDIA PVT. LTD.
Three other companies

Fuel, transport equipment and vehicle maintenance
Autoworks BusinessYamato Autoworks Co., Ltd.
Yamato Autoworks Iwate Co., Ltd.
Yamato Autoworks Shikoku Co., Ltd.

Yamato Autoworks Hokushinetsu Co., Ltd.
Yamato Autoworks Okinawa Co., Ltd.

Fuel, transport equipment and vehicle
maintenanceAccounting operations support
Personnel affairs operations support

Other
Sales support

Yamato Management Service Co., Ltd.

BoxCharter Co., Ltd.
Yamato·Staff·Supply Co., Ltd.

Sales
supportYamato Box Charter Co., Ltd.
Yamato Multi Charter Co., Ltd. Mainlinetransport
Swan Co., Ltd.
Kobe Yamato Transport Co., Ltd.

Staffing
services

The company that submits
consolidated financial statements

Consolidated subsidiaries- 12 -

Non-consolidated subsidiaries oraffiliates

3. Management Policy(1) Basic corporate management policies, medium- to long-term corporate management strategies andtarget management indicators
The Yamato Group has remained dedicated to developing products and services that promise greater
convenience in everyday life, inspired by our Management Philosophy which calls for us to help enrich oursociety by enhancing the social infrastructure of TA-Q-BIN networks, creating more convenient services for
comfortable lifestyles, and developing an innovative logistics system.
Going forward, as a matter of basic policy we remain committed to providing better services from theperspective of our customers, to which end we will work to bring about more sophisticated service offerings
while taking steps to fully establish an ideal network comprising operation centers, pickup and delivery locations,and information so that we can provide top-notch services to our customers. We also aim to ensure a
consistent management approach by increasing productivity and otherwise streamlining operations, andfocusing on efforts to enhance profitability.
(2) Target management indicators and medium- to long-term corporate management strategies
The year 2019 will usher in the 100th anniversary of the Yamato Group's founding. With that in mind, we
drafted our “DAN-TOTSU Management Plan 2019” which is meant to function as a long-term business planunder which we will manage operations toward our aim of becoming “the number one distribution and lifestylesupport solutions provider in Asia.” To achieve that goal, we will pursue a three-pronged basic strategy whereby
we: 1.) use new TA-Q-BIN growth momentum to secure growth resources for non-delivery businesses, 2.)create businesses and accelerate growth momentum, and 3.) strengthen governance and promote CSR.
Under our “DAN-TOTSU Three-Year Plan STEP,” the second phase of our medium-term management plan
launched in April 2014, we are aiming to achieve balanced operations through a dual approach entailing pursuitof our “Value Networking” design while also forging a robust corporate culture. The final year of the
management plan, fiscal 2016, targets consolidated operating revenue of 1,550.0 billion yen, consolidated
operating income of 90.0 billion yen, and ROE of 9.0%.
The medium- to long-term management plan is available through the following website:(Yamato Holdings Co., Ltd. website)
http://www.yamato-hd.co.jp/(3) Issues to be addressed by the Company
With the aim of achieving satisfaction among our shareholders, customers, society and employees, the YamatoGroup will pursue the following strategies on the basis of the long-term business plan “DAN-TOTSUManagement Plan 2019” and the medium-term business plan “DAN-TOTSU Three-Year Plan STEP” initiated in
April 2014.
a. Our efforts to forge a robust corporate culture will involve placing top priority on ensuring levels of qualitythat instill customer confidence while increasing employee satisfaction, strengthening both legal andfinancial governance, and pursuing CSR initiatives.
b. We will contribute to Japanese economic growth strategies by pushing ahead with our “Value Networking”
design which aspires to revolutionize logistics. More specifically, we will develop a TA-Q-BIN network in
Asia, and expand business by drawing on a business model created so that we can generate a high levelof added value that improves logistics speed, quality and costs, brought about by fusing our respective
business resources in the areas of information, logistics and transaction settlement within our new
network platform that includes “Haneda Chronogate,” “Atsugi Gateway” and “Okinawa International
Logistics Hub.”c. We will place top priority on maintaining service quality levels as we strive to heighten productivity andcontrol costs in every aspect of Group operations, including collection and delivery, back-office andsorting operations. Meanwhile, we will increasingly fortify our competitive strengths by making sure that
we generate appropriate revenues on the basis of proprietary Yamato Group services and a businessmodel that enables us to provide high levels of added value.
d. We will build a platform that links us with government bodies and corporations in various regions
throughout Japan, with the aim of providing support to people in their daily lives and revitalizing their local
communities. Moreover, we will strive to become the group of companies which is the most appreciatedand trusted by society by creating value that can be shared among corporations and society throughefforts to promote safety, environmental and other measures as we engage in our core operations.

- 13 -

4.

Consolidated Financial Statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2013

As of March 31, 2014

AssetsCurrent assets
Cash and deposits

213,619

220,147

Notes and accounts receivable - trade163,789

188,144

Accounts receivable - installment

37,45639,480

Lease investment assets

22,37635,328Merchandise and finished goods

852

780

Work in process

161

234

Raw materials and supplies

2,587

2,222

Deferred tax assets

16,646

16,547

Other

30,572

26,063

Allowance for doubtful accounts(1,654)(1,591)

Total current assets

486,408

527,359

281,096329,288

Accumulated depreciation(173,496)(174,246)

Buildings and structures, net

107,600

155,042

41,15153,811

Accumulated depreciation(31,110)(32,395)

Machinery and equipment, net

10,04021,416

182,678

187,881(168,721)(171,770)

13,957

16,110Land

187,107

188,343

Lease assets

23,54823,944

Accumulated depreciation(12,512)(15,201)

Lease assets, net

11,036

8,742

Construction in progress

35,891

7,894

Other

76,774

79,272(59,251)(59,695)

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

Machinery and equipment

VehiclesAccumulated depreciation
Vehicles, net

Accumulated depreciation
Other, net
Total property, plant and equipment

17,522

19,577383,157

417,127

12,38812,342Intangible assets
Software
Other

4,421

5,175

Total intangible assets

16,80917,518- 14 -

(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Investments and other assets
Investment securities* 22,597* 26,119Long-term loans receivable

1,165

1,062

Lease deposits

19,372

18,468Deferred tax assets

18,515

21,686

Other

3,533

4,141

Allowance for doubtful accounts(1,184)(1,350)Allowance for investment loss

(222)

—

63,77870,128463,744504,774

950,152

1,032,134

Notes and accounts payable - trade138,288

172,463

Short-term loans payable

29,81436,411

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

Lease obligations

4,714

4,784

Income taxes payable

22,441

20,907

Deferred installment income

5,006

5,349

Provision for bonuses

29,08229,515

Other70,192

77,927

Total current liabilities

299,539

347,360

Bonds with subscription rights to shares

20,00020,000Long-term loans payable

32,20942,266

Lease obligations

7,042

4,379

Long-term accounts payable - other

2,413

1,243

Non-current liabilities

Deferred tax liabilities
Provision for retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities- 15 -

459

1,808

38,178——47,224

7,395

7,680

107,698

124,601

407,238

471,961(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Net assets
Shareholders’ equity
Capital stock

127,234

127,234

Capital surplus

111,290

100,863

Retained earnings

347,358

371,965

Treasury shares(56,495)(56,079)

Total shareholders’ equity

529,387

543,984

Valuation difference on available-for-sale securities

6,095

8,769

Foreign currency translation adjustment(1,032)342

Remeasurements of defined benefit plans—(1,717)

5,063

7,395

Minority interests

8,463

8,792

Total net assets

542,914560,172

950,152

1,032,134

Accumulated other comprehensive income

Total accumulated other comprehensive income

Total liabilities and net assets- 16 -

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2014

Operating revenue

1,282,373

1,374,610

Operating cost

1,181,833

1,274,470

Operating gross profit

100,539

100,139

Selling, general and administrative expenses
Personnel expenses

20,21721,076

Provision for bonuses

782

825

Retirement benefit expenses

1,331

1,237

Taxes and dues

3,454

3,586

Provision of allowance for doubtful accounts

155

774

Depreciation

1,733

2,178

Other

8,776

9,426

Total selling, general and administrative
expenses

34,33637,043

66,20263,096

Operating income
Non-operating income
Interest income

91

92

Dividend income

569

530

Rent income

295

296

Other

1,863

1,763

Total non-operating income

2,819

2,681

Interest expenses

611

411

Rent expenses

187

160

Settlement package

20

160

Other

210

380

Total non-operating expenses

1,030

1,114

67,99164,664Gain on sales of non-current assets

53*1 1,899

Other

109

38

Total extraordinary income

163

1,937

Non-operating expenses

Ordinary income
Extraordinary income- 17 -

(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2013
Extraordinary losses
Loss on retirement of non-current assets

278

Impairment loss

*2

1,769

439
*2

216

Loss on valuation of shares of subsidiaries andassociates

453

—

Other

1,371

63

Total extraordinary losses

3,872

720

Income before income taxes and minority interests

64,28365,882

Income taxes - current

31,26832,604

Income taxes - deferred(1,705)(1,601)

Total income taxes

29,56231,003

Income before minority interests

34,721

34,879Minority interests in income (loss)

(423)

102

35,144

34,776

Net income- 18 -

(Consolidated statement of comprehensive income)(Millions of yen)
For the year ended
March 31, 2013

Income before minority interests

For the year ended
March 31, 2014

34,721

34,879Valuation difference on available-for-sale securities

3,198

2,938

Foreign currency translation adjustment

1,035

1,408

Total other comprehensive income* 4,233* 4,346

38,954

39,225Comprehensive income attributable to owners ofparent39,20938,825Comprehensive income attributable to minority
interests

(254)

400

Other comprehensive income

Comprehensive income(Breakdown)- 19 -

(3) Consolidated statement of changes in equity
For the year ended March 31, 2013
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

127,234

Retained earnings

121,314

Total shareholders’equityTreasury shares

321,862(56,514)513,897

Dividends of surplus(9,463)(9,463)

Change of scope of
consolidation

(185)

(185)

Net income

35,14435,144Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
shares(10,005)(10,005)

(0)

0

0

(10,023)

10,023—

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—(10,023)

25,49518

15,490127,234

111,290347,358(56,495)

529,387

Minority
interests

Total net assets

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale
securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income2,975(1,876)

—

1,099

8,787

523,783

Dividends of surplus(9,463)

Change of scope of
consolidation(185)

Net income

35,144Purchase of treasury shares(10,005)

Disposal of treasury shares

0

Retirement of treasury
shares—Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

3,119

844

—

3,964

(324)

3,640

3,119

844

—

3,964

(324)

19,1306,095(1,032)

—

5,063

8,463

542,914- 20 -

For the year ended March 31, 2014
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges of items during
periodCapital surplus

127,234

Retained earnings

111,290

Total shareholders’equityTreasury shares

347,358(56,495)

529,387

Dividends of surplus(10,169)(10,169)

Net income

34,776

34,776

Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
shares(10,011)(10,011)0

0

0(10,427)

10,427—

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—(10,427)

24,607416

14,596

127,234

100,863

371,965(56,079)

543,984

Accumulated other comprehensive income

Balance at beginning of current
periodChanges of items during
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income6,095(1,032)—

5,063

Minority interests

Total net assets

8,463

542,914

Dividends of surplus(10,169)

Net income

34,776

Purchase of treasury shares(10,011)

Disposal of treasury shares

0

Retirement of treasury
shares—Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

2,674

1,374

(1,717)

2,331

329

2,661

2,674

1,374

(1,717)

2,331

329

17,257

8,769

342(1,717)

7,395

8,792

560,172- 21 -

(4) Consolidated statement of cash flows(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2013
Cash flows from operating activities
Income before income taxes and minority interests

64,28365,882

Depreciation

37,94442,283

Impairment loss

1,769

216

Increase (decrease) in provision for retirement
benefits

6,442—

Increase (decrease) in net defined benefit liability

—

6,278

Increase (decrease) in provision for bonuses

(352)

390

Interest and dividend income

(660)

(622)

Interest expenses

988

723

Loss (gain) on sales of non-current assets(53)(1,899)Loss on retirement of non-current assets

278

439

Loss (gain) on sales of investment securities

(42)

(0)

Loss (gain) on valuation of investment securities

1,175

3

(10,526)(38,786)

86

401

Increase (decrease) in notes and accounts payable trade

8,406

33,410

Other, net(6,270)6,910

Subtotal

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

103,468

115,631

Interest and dividend income received

683

605

Interest expenses paid

(975)

(724)

Donation for earthquake recovery initiatives(1,148)—

Income taxes paid

(28,077)(35,437)

Net cash provided by (used in) operating activities

73,94980,075

(694)

(461)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

547

814

Purchase of property, plant and equipment(47,098)(65,211)

Proceeds from sales of property, plant andequipment

582

4,237

Purchase of investment securities

(11)

(10)

Proceeds from sales of investment securities
Payments of loans receivable52

2(1,097)(1,347)

Collection of loans receivable

1,222

1,371

Other payments(5,962)(7,143)

Other proceeds

1,920

2,814

(50,539)(64,935)

Net cash provided by (used in) investing activities- 22 -

(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2013
Cash flows from financing activities
Increase in short-term loans payable

68,94880,797

Decrease in short-term loans payable(58,652)(77,518)

Repayments of finance lease obligations(5,303)(4,960)

Proceeds from long-term loans payable

5,537

27,007

Repayment of long-term loans payable(12,198)(14,145)

Proceeds from sales of treasury shares

00

Purchase of treasury shares(10,008)(10,013)

Cash dividends paid

(9,458)(10,172)

(69)

(62)

Cash dividends paid to minority shareholders
Other, net

181

33

(21,022)(9,033)

Effect of exchange rate change on cash and cash
equivalents

457

647

Net increase (decrease) in cash and cash equivalents

2,844

6,753

Cash and cash equivalents at beginning of period

208,393

212,641

Increase in cash and cash equivalents from newly
consolidated subsidiary

1,403

—

* 212,641* 219,395

Net cash provided by (used in) financing activities

Cash and cash equivalents at end of period- 23 -

(5) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 41
Major consolidated subsidiaries are as described in “2. Status of the Corporate Group.”
YAMATO RHQ DEVELOPMENT PTE. LTD., established during the fiscal year under review, is included in
the scope of consolidation from the fiscal year under review. On January 1, 2014, YAMATO RHQ
DEVELOPMENT PTE. LTD. was renamed YAMATO ASIA PTE. LTD.
(2) Non-consolidated subsidiaries, etc.
YAMATO LOGISTICS INDIA PVT. LTD. and certain other subsidiaries are not included within the scope of
consolidation. The total assets, operating revenue, net income, and retained earnings of these
non-consolidated subsidiaries are immaterial and, even taken together as a group, they do not exert asignificant influence on the consolidated financial statements.
2.

Application of equity method
The equity method is not applied to YAMATO LOGISTICS INDIA PVT. LTD. and certain other non-consolidated
subsidiaries, along with YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliated companies. The
net income and the retained earnings of these companies are immaterial and, even taken together as a group,
they do not exert a significant influence on the consolidated financial statements.

3.

Closing date of consolidated subsidiaries
Of consolidated subsidiaries, YAMATO TRANSPORT U.S.A., INC., and other twelve overseas subsidiaries
have December 31 as their financial year end. Financial statements as of this closing date were used in the
preparation of the consolidated financial statements. However, the consolidated figures have been adjusted as
required to reflect significant transactions occurring between December 31, 2013 and March 31, 2014 that isthe consolidated closing date.

4.

Accounting policies
The Group’s major accounting policies are as follows.
(1) Valuation basis and methods for principle assets
a. Securities
Securities held-to-maturity
Calculated based on the amortized cost method (straight-line method).
Available-for-sale securities
Securities with fair market value:

Stated at the fair market value based on the quoted
market price as of the fiscal year end (valuationdifferences are recognized in net assets; the cost of
securities sold is calculated by the moving-averagemethod).

Securities without fair market value:

Stated at the cost by moving-average method.

b. Inventories
Stated at the cost by first-in first-out method (for the value stated in the balance sheet, the book value
is written down based on the decreased profitability).

- 24 -

(2) Depreciation and amortization methods of major depreciable or amortizable assets
a. Property, plant and equipment (excluding lease assets):
Computed using the declining-balance method.
Meanwhile, the straight-line method is adopted forbuildings (excluding fixtures) acquired on or after April 1,
1998.
For overseas consolidated subsidiaries’ assets, thestraight-line method based on estimated useful lives is
adopted.
b. Intangible assets (excluding lease assets):
Computed using the straight-line method. Meanwhile,software is amortized by the straight-line method overthe estimated useful life of five years.
c. Lease assets:
Computed using the straight-line method where theuseful life of lease assets shall be equal to the lease
period and their residual value shall be zero.
(3) Accounting standards for significant provisions
a. Allowance for doubtful accounts
The allowance for doubtful accounts is provided to prepare for loss from uncollectible credits.
For ordinary receivables, the amount is estimated using the rate based on the historical bad debt
experience. For special receivables with higher uncertainty of collectivity is considered on individual
cases, and prospective uncollectible amount is provided.
b. Allowance for investment loss
To prepare for devaluation loss of investments in non-consolidated subsidiaries, allowances isprovided considering the status of those subsidiaries’ assets.
c. Provision for bonuses
The provision for bonuses is provided for payment of bonuses to employees based on an amount
expected to be paid.
This provision is not applicable for overseas subsidiaries.
(4) Method of accounting for retirement benefits
a. Method of attributing expected retirement benefit to periods
In calculating the retirement benefit obligations, the straight-line basis is used in determining theamount of the expected retirement benefit obligation attributed to service performed up to the end of
the current fiscal year.
b. Method of recognizing actuarial differences and prior service costs
The entire amount of prior service cost is recognized in profit or loss in the fiscal year during which itarises. Actuarial differences are recognized in profit or loss in the year following the year in which a
respective gain or loss arises, and are amortized proportionally on a straight-line basis over a periodof five years, which is within the average remaining years of service of the eligible employees.
(Changes in accounting policies)
Application of “Accounting Standard for Retirement Benefits,” etc.
The Company has applied the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) and “Guidance on the Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17,2012), effective from the end of the fiscal year ended March 31, 2014.
In line with this, the Company has adopted the approach of recording the difference between retirement benefit
obligations and pension assets in net defined benefit liability. Unrecognized actuarial differences are also
recorded in net defined benefit liability. In adopting the Accounting Standard for Retirement Benefits and the
Guidance on the Accounting Standard for Retirement Benefits, and in accordance with transitional accounting
as stipulated in paragraph 37 of the Accounting Standard for Retirement Benefits, the effect of the changes inaccounting policy described here has been recognized in the item remeasurements of defined benefit plans- 25 -

under accumulated other comprehensive income as of March 31, 2014.
As a result of the change, as of the end of the fiscal year ended March 31, 2014, net defined benefit liability of
47,224 million yen was recorded, accumulated other comprehensive income decreased by 1,717 million yen
and deferred tax assets increased by 1,086 million yen. Net asset per share decreased by 4.10 yen.
(5) Basis of revenue recognition
Deferred installment income:The prorated amounts for the shopping loan service are recognized as income when the due datecomes.
(6) Method of significant hedge accounting
a. Method of hedge accounting
Interest rate swaps are accounted for using the exceptional treatment as they satisfy the applicableconditions.
b. Hedging instrument and hedged item
Hedging instrument:Interest rate swaps
Hedged item:
Interest on loansc. Hedging policy
Interest rate swap transactions are used to avoid interest rate fluctuation risk associated with fundprocurement.
d. Method of evaluating hedge effectivenessHedging effectiveness in interest rate swap transactions is not evaluated as they are accounted forusing the exceptional treatment.
(7) Amortization of goodwill and amortization period
Equally divided method of five years. However, in the case where the amount is immaterial, the wholeamount may be charged to expenses when they occur.
(8) Scope of funds in consolidated statement of cash flows
Cash (cash and cash equivalents) in the consolidated statement of cash flows consists of cash on handand short-term investments with a maturity not exceeding three months from the time of purchase that arereadily convertible to cash and not exposed to significant risk in value fluctuations. Bank overdrafts areincluded in cash equivalents except when they are clearly regarded for procurement of funds, as is thecase with short-term loans payable.
(9) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting for consumption taxes:
Consumption taxes are excluded from transaction amounts.
(Consolidated balance sheet)* Investment securities for non-consolidated subsidiaries and affiliates are as follows.
Fiscal 2013
Investment securities809- 26 -(Millions of yen)
Fiscal 2014
542

(Consolidated statement of income)*1 Gain on sales of non-current assets
Fiscal 2014 (from April 1, 2013 to March 31, 2014)
Offsetting gains and losses from sales of assets (such as land and buildings) involving the same transactions areincluded in the gain on sales of non-current assets.
*2 Impairment loss
Fiscal 2013 (from April 1, 2012 to March 31, 2013)(Millions of yen)
Use of asset

Type of asset

RegionBranch anddistribution center andother

Buildings, land andotherYamato Home Convenience Co., Ltd., Nishi
Kanto General Branch Office (Tokorozawa City,
Saitama Prefecture) and eight other premises

Amount of impairment
loss

1,769

The Yamato Group grouped the assets based on the classification in managerial accounting and the unit in making
investment decisions, with Yamato Transport Co., Ltd. treating a main branch and subordinate branches as one unit,
Yamato Home Convenience Co., Ltd. treating a general branch office as one unit and the Company and otherconsolidated subsidiaries based on the unit of department.
As a result, the Group recognized a continuous decrease in profit and loss arising from operating activities orsignificant declines in market prices for the asset group consisting of Yamato Home Convenience Co., Ltd., Nishi
Kanto General Branch Office and eight other premises, and it decreased the book value of the relevant asset groupto the recoverable value and posted the relevant decrease of 1,769 million yen to extraordinary losses as an
impairment loss. A breakdown of this decrease shows that 352 million yen was attributable to buildings, 976 million
yen was attributable to land and 412 million yen was attributable to goodwill.
The recoverable value of the relevant asset group is calculated based on net realizable value and valued based
mainly on real estate appraisal standards, assessed value of property tax or the posted land price.
Fiscal 2014 (from April 1, 2013 to March 31, 2014)(Millions of yen)
Use of asset

Type of asset

RegionPlant and other

Buildings and otherYamato Autoworks Co., Ltd., Tomakomai Plant(Tomakomai City, Hokkaido) and eleven otherpremises

Amount of impairment
loss

216

The Yamato Group grouped the assets based on the classification in managerial accounting and the unit in making
investment decisions, with Yamato Transport Co., Ltd. treating primarily a main branch and subordinate branches as
one unit, Yamato Autoworks Co., Ltd. treating primarily plants and the Company and other consolidated subsidiaries
based on the unit of department.
As a result, the Group recognized a continuous decrease in profit and loss arising from operating activities orsignificant declines in market prices for the asset group consisting of Yamato Autoworks Co., Ltd.’s Tomakomai Plant
and eleven other premises, and it decreased the book value of the relevant asset group to the recoverable value
and posted the relevant decrease of 216 million yen to extraordinary losses as an impairment loss. Of the total
extraordinary loss recognized, 199 million yen was attributable to buildings.
The recoverable value of the relevant asset group is calculated based on net realizable value and valued based
mainly on real estate appraisal standards, assessed value of property tax or the posted land price.

- 27 -

(Consolidated statement of comprehensive income)*Recycling amount and income tax relating to other comprehensive income
Valuation difference on available-for-sale securities
Amount recorded during the period
Recycling amount
Before tax effect adjustments
Tax effect amount
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Amount recorded during the period
Total other comprehensive income

Fiscal 2013

(Millions of yen)
Fiscal 2014

3,035
1,175

3,783
(0)

4,211
(1,012)
3,198

3,783
(844)
2,938

1,035
4,233

1,408
4,346

(Consolidated statement of changes in equity)
For the year ended March 31, 2013
1. Class and total number of issued shares and treasury shares(Thousands of shares)

Number of shares as of the
beginning of the current
fiscal year

Number of increased sharesin current fiscal year

Number of decreased
shares in current fiscal year

Number of shares as of endof current fiscal year

Common shares (Note 1)

468,052—

6,707

461,345

Total

468,052—

6,707

461,345

Common shares (Note 2)

37,905

6,433

6,708

37,631

Total

37,905

6,433

6,708

37,631

Issued shares

Treasury shares

Notes: *1 The decrease of 6,707 thousand shares of issued shares of common shares resulted from a decrease due to retirement of treasury
shares.
*2 The increase of 6,433 thousand shares of treasury shares of common shares resulted from an increase of 6,428 thousand shares dueto the purchase of treasury shares and an increase of 4 thousand shares due to the purchase of fractional shares.
The decrease of 6,708 thousand shares of treasury shares of common shares resulted from a decrease of 6,707 thousand sharesthrough retirement of treasury shares and a decrease of 0 thousand shares due to sale of fractional shares.

2.

Subscription rights to shares and treasury subscription rights to shares
As the number of shares subject to subscription rights is immaterial against the total number of issued shares(excluding treasury shares) as of the end of the fiscal year under review, descriptions are omitted.

3. Dividends(1) Payment of dividends
Resolution

Class of shares

Total amount ofdividends(millions of yen)

The Board of Directors
Meeting on May 15, 2012

Common shares

4,731

The Board of Directors
Meeting on October 31, 2012

Common shares

4,731- 28 -

Dividend pershare (yen)Record date

Effective date on
and after

11

March 31, 2012

June 5, 201211

September 30,
2012

December 10,
2012(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in theupcoming fiscal year
Resolution

Class ofsharesTotal amount ofdividends(millions of yen)

Source ofdividend

Dividend pershare (yen)Record date

Effective dateon and after

The Board of Directors
Meeting on May 16, 2013

Commonshares5,084

Retainedearnings

12

March 31,2013

June 4, 2013

For the year ended March 31, 2014
1. Class and total number of issued shares and treasury shares(Thousands of shares)

Number of shares as of
the beginning of thecurrent fiscal year

Number of increased
shares in current fiscal
year

Number of decreased
shares in current fiscal
year

Number of shares as ofend of current fiscal
year

Common shares (Note 1)

461,345—6,660

454,684

Total

461,345—6,660

454,684

Common shares (Note 2)

37,631

4,771

6,660

35,742

Total

37,631

4,771

6,660

35,742

Issued shares

Treasury shares

Notes: *1 The decrease of 6,660 thousand shares of issued shares of common shares resulted from a decrease due to retirement of treasury
shares.
*2 The increase of 4,771 thousand shares of treasury shares of common shares resulted from an increase of 4,766 thousand shares dueto the purchase of treasury shares and an increase of 5 thousand shares due to the purchase of fractional shares.
The decrease of 6,660 thousand shares of treasury shares of common shares resulted from a decrease of 6,660 thousand sharesthrough retirement of treasury shares and a decrease of 0 thousand shares due to sale of fractional shares.

2.

Subscription rights to shares and treasury subscription rights to shares
As the number of shares subject to subscription rights is immaterial against the total number of issued shares(excluding treasury shares) as of the end of the fiscal year under review, descriptions are omitted.

3. Dividends(1) Payment of dividends
Resolution

Class of shares

Total amount ofdividends(millions of yen)

The Board of Directors
Meeting on May 16, 2013

Common shares

5,084

The Board of Directors
Meeting on October 30, 2013

Common shares

5,084

Dividend pershare (yen)Record date

Effective date on
and after

12

March 31, 2013

June 4, 201312

September 30,
2013

December 10,
2013(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in theupcoming fiscal year
Resolution

Class ofsharesTotal amount ofdividends(millions of yen)

Source ofdividend

Dividend pershare (yen)Record date

Effective dateon and after

The Board of Directors
Meeting on May 16, 2014
(planned)

Commonshares5,027

Retainedearnings

12

March 31,2014

June 3, 2014
(planned)- 29 -

(Consolidated statement of cash flows)*Relationship between the balance of cash and cash equivalents at the end of the period and the amounts recordedin the items shown on the consolidated balance sheet(Millions of yen)
Fiscal 2013

Fiscal 2014

213,619

220,147

Time deposits due beyond three months

(694)

(444)

Short-term loans payable account

(283)

(307)

212,641

219,395

Cash and deposits

Cash and cash equivalents(Segment Information)
1. Segment Information(1) Summary of reportable segment
The reportable segments of the Company are constituent units of the Company whose separate financial
information can be obtained. The Board of Directors periodically examines these segments to decide on the
allocation of management resources and evaluate business performance.
The Yamato Group consists of six business segments under the umbrella of the Company, a pure holding
company, and these business segments have been formed according to business activity. Business
management is conducted based on this business segment.
Accordingly, based on this business segment, the Company has the following six reportable segments:
Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial business, andAutoworks business. Effective from the fiscal year ended March 31, 2014, the reportable segment “Truck
Maintenance” has been renamed “Autoworks.”
Type of services by reportable segment
Reportable segment
Delivery
BIZ-Logistics
Home Convenience
e-Business
Financial
Autoworks

Type of services
Small parcel delivery services for consumers and corporations
Business-to-business distribution
Moving and other lifestyle support services for consumers
Information services for corporations, such as ASP services and development of
information systems
Financial services for consumers and corporations, such as settlement
Collective vehicle management agent business for transportation companies(2) Method of calculating operating revenue, income/loss, assets and other items by reportable segment
The accounting method used for reported business segments is the same as that described in the section on“Significant matters forming the basis of preparing the consolidated financial statements.”- 30 -

(3) Information regarding the amounts of operating revenue, income/loss, assets and other items by reportablesegment
For the year ended March 31, 2013

(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,028,219

86,80644,60137,06056,71056,43911,486

14,752

27,8593,910

1,084,658
41,908575,698

98,293
4,094
52,52559,353(527)
18,41464,9206,986
36,861

60,6208,516
189,457

27,769

1,541

755

3,759

2,356

31,725

1,654

550

2,262

4,482

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income (loss)
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Autoworks

Operating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income (loss)
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Other(Notes 1, 2)

Total

Financial

23,2285,746

1,282,373—

1,282,373

27,531

52,993

194,973(194,973)—

50,7592,666
21,80458,74018,762
10,844

1,477,347
82,407
905,606(194,973)(16,204)
44,545

1,282,373
66,202
950,152

948

253

37,384550

37,935728

232

41,636

6,415

48,052

Notes: 1. Other includes business-to-business distribution via JITBOX Charter, staffing services and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment income is 17,553 million yen.
3. Adjustments made are as follows.
(1) The adjustment of (16,204 million yen) of segment income resulted from eliminating transactions among segments.
(2) The adjustment of 44,545 million yen of segment assets includes offsetting and elimination of assets among segments of(118,389 million yen) and group-wide assets of 162,935 million yen not allocated to each reportable segment.
(3) The adjustment of 6,415 million yen of increases of property, plant and equipment and intangible assets is the Company’s
capital investment.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 31 -

For the year ended March 31, 2014

(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,098,692

90,254

48,723

41,53762,72760,184

12,462

14,15430,1783,567

1,158,877
35,873
632,617

102,717
3,403
54,55062,877217
19,01771,716
7,954
39,693

66,295
9,405
233,495

31,776

1,560

575

3,785

2,720

64,377

4,250

700

3,467

5,492

Reconciliation(Note 4)

Amountrecorded inconsolidated
financialstatements(Note 5)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Operating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Financial

Autoworks(Note 1)

Other
(Notes 2, 3)

25,6507,022

1,374,610－

1,374,610

28,066

60,664

209,278(209,278)－

53,717
3,272
23,411

67,687
24,956
11,168

1,583,888
85,083
1,013,954(209,278)(21,987)
18,1791,374,610
63,096
1,032,134

906

284

41,609656

42,265380

563

79,232

298

79,530Total

Notes: 1. Effective from the fiscal year ended March 31, 2014, the reportable segment “Truck Maintenance” has been renamed “Autoworks.”
The segment information for the fiscal year ended March 31, 2013 is presented using the name after the change.
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 24,104 million yen.
4. Adjustments made are as follows.
(1) The adjustment of (21,987 million yen) of segment income resulted from eliminating transactions among segments.
(2) The adjustment of 18,179 million yen of segment assets includes offsetting and elimination of assets among segments of(143,258 million yen) and group-wide assets of 161,438 million yen not allocated to each reportable segment.
(3) The adjustment of 298 million yen of increases of property, plant and equipment and intangible assets is the Company’s
capital investment.
5. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 32 -

2.

Relevant information
For the year ended March 31, 2013
(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko Mail

831,082(Millions of Yen)
Total

Other

122,276

329,014

1,282,373(2) Information by region
a. Operating revenueJapan
1,259,727

13,100(Millions of Yen)
Total
1,282,373

1,904(Millions of Yen)
Total
383,157

Other

North America
9,545

b. Property, plant and equipment
Japan

North America
380,952

Other299(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.
For the year ended March 31, 2014(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko Mail
120,799

906,056(Millions of Yen)
Total

Other
347,753

1,374,610(2) Information by region
a. Operating revenue
Japan
1,349,718

14,431(Millions of Yen)
Total
1,374,610

1,728(Millions of Yen)
Total
417,127

Other

North America
10,460b. Property, plant and equipment
Japan

Other

North America
415,013385(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.

- 33 -

3.

Information regarding impairment losses of non-current assets by reportable segment
For the year ended March 31, 2013

(Millions of Yen)

Delivery
Impairment loss

BIZ-Logistics
357

Autoworks—
Other

Impairment loss—

Home
Convenience
1,409

Financial—

Corporate or
eliminations

Total
—

e-Business

1,769

Consolidated—

For the year ended March 31, 2014

Autoworks

4.

Home
Convenience

BIZ-Logistics—

Impairment loss

1,769

(Millions of Yen)

Delivery
Impairment loss

2

—
Other

216

e-Business——Corporate or
eliminations

Total
—

Financial

216—
Consolidated—

216

Information regarding amortization and unamortized balance of goodwill by reportable segment
For the year ended March 31, 2013

(Millions of Yen)

DeliveryAmortization for thecurrent period
Balance as of the endof the current period

BIZ-Logistics

e-Business

Financial

68

—

104

—

—

—

—

—

—

—

Autoworks
Amortization for thecurrent period
Balance as of the endof the current period

Home
Convenience

Other

Corporate or
eliminations

Total

Consolidated

—

—

172

—

172

—

—

—

—

—

For the year ended March 31, 2014
Not applicable.

- 34 -(Tax Effect Accounting)1.

Breakdown of major causes for deferred tax assets and deferred tax liabilities(Millions of yen)
Fiscal 2014

Fiscal 2013
Deferred tax assets (current assets)
Provision for bonuses
Accrued legal welfare expenses
Accrued enterprise tax
Excess in provision of allowance for doubtful accounts
Other

10,994
1,727
2,015
210
2,456

10,463
1,660
1,747
195
3,066

Subtotal
Allowance for devaluation

17,404(392)

17,133
(273)

Total

17,012

16,86013,719－Deferred tax assets (non-current assets)
Provision for retirement benefits
Net defined benefit liability－

16,997

Loss on valuation of land
Impairment loss
Loss on valuation of investment securities
Unrealized income on non-current assets
Loss on valuation of telephone subscription rightOther

24,218
4,149
2,201
1,659
546
10,08624,162
4,225
2,199
1,839
546
10,763

Subtotal
Allowance for devaluation

56,582(34,472)

60,734(35,504)

Total

22,11025,229Deferred tax liabilities (current liabilities)
Other

(365)

(312)

Total

(365)

(312)

Deferred tax liabilities (non-current liabilities)
Valuation difference on available-for-sale securities
Reserve for reduction entry
Other(2,020)(245)(1,789)(2,871)(230)(2,249)Total(4,054)(5,351)

34,70236,426

Net deferred tax assets

2.

Breakdown of the main items that caused differences between the normal effective statutory tax rates and theactual effective tax rates after tax effect accounting

Normal effective statutory tax rates of consolidated financial
statement-submitting companies(Reconciliation)

Per capita levy of local taxes
Allowance for devaluation
Downward revision to deferred tax assets as of the end of
the period due to the change in corporate tax rates
Other

Actual effective tax rates after tax effect accounting- 35 -

Fiscal 2013

Fiscal 2014

38.0 %

38.0 %

4.2
2.2
—

4.3
1.2
1.8

1.6

1.8

46.0

47.1

3.

Adjustment of deferred tax assets and deferred tax liabilities due to change in corporate tax rates
On March 31, 2014, the government promulgated the “Act for Partial Revision of the Income Tax Act, etc.” (ActNo. 10 of 2014), which repeals the special reconstruction corporation surtax effective from the fiscal year
starting on and after April 1, 2014. As a result, the normal effective statutory tax rate of 38.0% previously appliedin calculating the amount of deferred tax assets and liabilities has been reduced to 35.6% with respect to thetemporary differences expected to be resolved in the fiscal year beginning April 1, 2014. This results in adecrease in deferred tax assets of 1,171 million yen (after subtraction of deferred tax liabilities) and an increase
in income taxes - deferred of 1,162 million yen.

(Financial Instruments)
1.

Matters concerning the status of financial instruments(1) Policy on financial instruments
To finance further business growth, the Yamato Group raises capital through bank loans and bondissuances based on a facilities investment scheme that includes the network development plan. One-time
surplus funds are invested in safe financial assets. Derivative products are only used for hedging against
variable interest rate risk, and no speculative transactions are undertaken.
Some of the Group’s consolidated subsidiaries are engaged in businesses such as leasing and third-party
credit sales.
(2) Features and risks of financial instruments and risk management structure
Operating receivables such as notes and accounts receivable - trade and accounts receivable installment carry credit risk of trading partners, and thus the Company manages and controls cash
received, as well as outstanding receivables, for each period to identify the credit risk of each trading
partner.
Regarding investment securities, the Yamato Group mainly holds shares of companies with which theGroup has business relationships or forms a capital alliance, and such shares involve the risk of stock
price fluctuations.
The majority of operating payables, such as notes and accounts payable - trade, are due within one year.
With regard to loans payable, short-term loans payable are mainly used to raise capital for the Group’s
financial business and long-term loans payable fund growth-driving programs such as network
development. A Group consolidated subsidiary engaged in financial business has obtained loans with avariable interest rate and employs interest rate swaps for a portion of the loans to hedge interest rate risk
associated with fundraising. Interest rate swap transactions are executed in conformity with the Group’s
regulations for authorizing derivative transactions.
Within the Yamato Group, each Group company controls liquidity risk associated with operating payables
and loans by monitoring payments and settlements, bookkeeping, and balances, as well as managing
cash positions.
(3) Supplemental remarks on the fair value of the financial instruments
The fair value of financial instruments refers to their market value or value reasonably calculated basedon certain assumptions if market value is not available. Therefore, the estimated fair value may vary withdifferent assumptions.

- 36 -

2.

Matters concerning fair value of financial instruments
The amounts recorded on the consolidated balance sheet, their fair values, and differences between them areshown in the following. Some financial instruments are excluded because it is extremely difficult to identify theirfair values (see Note 5).
For the year ended March 31, 2013
(Millions of yen)Amount on the
consolidated balance
sheet(1) Cash and deposits

213,619(2) Notes and accounts receivable - trade163,789

Fair value

Difference

213,619－

164,257

610

31,337

36,109

4,771

Available-for-sale securities

20,515

20,515—(5) Notes and accounts payable - trade[138,288][138,288]—(6) Short-term loans payable[29,814][29,891]

77(7) Long-term loans payable[32,209][32,274]

64

—

—

—

Allowance for doubtful accounts(142)
163,646(3) Accounts receivable - installment

37,456

Allowance for doubtful accounts(1,111)

Deferred installment income[5,006](4) Investment securities(8) Derivatives
Notes:

1. Items recognized as liabilities are shown in square parentheses [ ] both under Amount on the consolidated balance sheet andFair value.
2. Notes and accounts receivable-trade are presented after deducting allowance for doubtful accounts set up for notes and accounts
receivable - trade not to be settled in the short term.
3. Accounts receivable - installment is presented after deducting the relevant allowance for doubtful accounts and deferredinstallment income.
4. Method of calculating fair value of financial instruments and other matters concerning securities and derivatives(1) Cash and deposits
Because all deposits are short-term deposits and their fair values are approximately equal to their book values, fair value isthe same as book value.
(2) Notes and accounts receivable - trade
Because notes and accounts receivable - trade are usually settled in a short period and their fair values are approximately
equal to their book values, fair value is the same as book value. Some notes and accounts receivable - trade are grouped bytheir classification categories and computed on the basis of the present value of future cash flow discounted at a rate basedon the yield of Japanese government bonds.
(3) Accounts receivable - installment
The fair values of accounts receivable - installment are grouped by their classification categories and computed on the basisof the present value of future cash flow discounted at the rate based on market interest rate.
(4) Investment securities
The fair values of listed equity shares in investment securities are based on quoted market prices. For matters concerning
securities according to the purpose for which they are held, please see the notes to “Securities.”(5) Notes and accounts payable - trade
As most notes and accounts payable - trade are due within one year and their fair values are approximately equal to theirbook values, fair value is the same as book value.

- 37 -

(6) Short-term loans payable and (7) Long-term loans payable
The fair value of short-term loans payable, long-term loans payable, and long-term loans payable meeting the requirementsof exceptional treatment for interest rate swaps and being treated together with interest swaps are computed on the basis of
the total amount of principal and interest discounted at the interest rate applicable to new loans carrying the same conditions.
(8) Derivatives
a. Derivative transactions to which hedge accounting is not applied: Not applicable.
b. Derivative transactions to which hedge accounting is applied: The contract amount or amount equivalent to the principal
set forth in the contract, as of the consolidated closing date, are as follows.
(Millions of yen)Contract amount, etc.
Type of derivative
Major hedged
Method of hedge accounting
Fair valuetransaction
itemsOver 1 year
Interest rateswaps
Long-term loans
42,05028,050*payablePay-fixed,
receive-variable* The exceptional treatment of interest rate swaps is applied to the Group’s interest rate swaps, and these transactions are treated together
with long-term loans payable with the relevant hedging instruments. Therefore, their fair value is included among long-term loans payable.
Exceptional treatment of interest rateswaps

5. It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is2,081 million yen) because they do not have quoted market prices and their future cash flow cannot be estimated. Therefore, they
are excluded from (4) Investment securities/Available-for-sale securities.
6. Scheduled redemption amounts after the consolidated closing date for monetary claims and securities with maturity period

Within 1 year
Cash and deposits
Notes and accounts receivable trade
Accounts receivable - installment
Total(Millions of yen)Over 5 years

Over 1 year, within 5 years
213,619
156,107

—
7,637

—
44

19,317

17,556582

389,044

25,194626

7. Scheduled repayment amounts after the consolidated closing date for bonds with subscription rights to shares, long-term loans
payable, and lease obligations(Millions of yen)Over 1 year,
within 2 years

Over 2 years,
within 3 years

Over 3 years,
within 4 years

Over 4 years,
within 5 years——

20,000———

14,11017,117

9,967

4,617

508

—

4,714
18,824

4,355
21,472

1,633
31,600

763
5,380

256
764

32
32

Within 1 year
Bonds with
subscription
rights to shares
Long-term loans
payableLease obligations
Total- 38 -

Over 5 years

For the year ended March 31, 2014
(Millions of yen)Amount on the
consolidated balance
sheet(1) Cash and deposits

220,147(2) Notes and accounts receivable - trade188,144

Fair value

Difference

220,147—

188,519505

33,19738,3195,121

Available-for-sale securities

24,795

24,795—(5) Notes and accounts payable - trade[172,463][172,463]—(6) Short-term loans payable[36,411][36,492]80(7) Long-term loans payable[42,266][42,334]

68

—

—

—

Allowance for doubtful accounts(131)
188,013(3) Accounts receivable - installment

39,480Allowance for doubtful accounts(933)

Deferred installment income[5,349](4) Investment securities(8) Derivatives
Notes:

1. Items recognized as liabilities are shown in square parentheses [ ] both under Amount on the consolidated balance sheet andFair value.
2. Notes and accounts receivable - trade are presented after deducting allowance for doubtful accounts set up for notes andaccounts receivable - trade not to be settled in the short term.
3. Accounts receivable - installment is presented after deducting the relevant allowance for doubtful accounts and deferredinstallment income.
4. Method of calculating fair value of financial instruments and other matters concerning securities and derivatives(1) Cash and deposits
Because all deposits are short-term deposits and their fair values are approximately equal to their book values, fair value isthe same as book value.
(2) Notes and accounts receivable - trade
Because notes and accounts receivable - trade are usually settled in a short period and their fair values are approximately
equal to their book values, fair value is the same as book value. Some notes and accounts receivable - trade are grouped bytheir classification categories and computed on the basis of the present value of future cash flow discounted at a rate basedon the yield of Japanese government bonds.
(3) Accounts receivable - installment
The fair values of accounts receivable - installment are grouped by their classification categories and computed on the basisof the present value of future cash flow discounted at the rate based on market interest rate.
(4) Investment securities
The fair values of listed equity shares in investment securities are based on quoted market prices. For matters concerning
securities according to the purpose for which they are held, please see the notes to “Securities.”(5) Notes and accounts payable - trade
As most notes and accounts payable - trade are due within one year and their fair values are approximately equal to theirbook values, fair value is the same as book value.
(6) Short-term loans payable and (7) Long-term loans payable
The fair value of short-term loans payable, long-term loans payable, and long-term loans payable meeting the requirementsof exceptional treatment for interest rate swaps and being treated together with interest swaps are computed on the basis of
the total amount of principal and interest discounted at the interest rate applicable to new loans carrying the same conditions.

- 39 -

(8) Derivatives
a. Derivative transactions to which hedge accounting is not applied: Not applicable.
b. Derivative transactions to which hedge accounting is applied: The contract amount or amount equivalent to the principal
set forth in the contract, as of the consolidated closing date, are as follows.
(Millions of yen)Contract
amount,etc.
Type of derivative
Major hedged
Method of hedge accounting
Fair valuetransaction
itemsOver 1 year
Interest rateswaps
Long-term loans
44,05029,050*payablePay-fixed,
receive-variable* The exceptional treatment of interest rate swaps is applied to the Group’s interest rate swaps, and these transactions are treated together
with long-term loans payable with the relevant hedging instruments. Therefore, their fair value is included among long-term loans payable.
Exceptional treatment of interest rateswaps

5. It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is1,324 million yen) because they do not have quoted market prices and their future cash flow cannot be estimated. Therefore, they
are excluded from (4) Investment securities/Available-for-sale securities.
6. Scheduled redemption amounts after the consolidated closing date for monetary claims and securities with maturity period

Within 1 year

(Millions of yen)Over 5 years

Over 1 year, within 5 years

Cash and deposits
Notes and accounts receivable - trade
Accounts receivable - installment

220,147
177,095
19,687—
10,975
19,154

—
74
638

Total

416,930

30,129713

7. Scheduled repayment amounts after the consolidated closing date for bonds with subscription rights to shares, long-term loans
payable, and lease obligations(Millions of yen)Over 1 year,
within 2 years

Over 2 years,
within 3 years

Over 3 years,
within 4 years

Over 4 years,
within 5 years—

20,000－－——17,156

10,00625,656

6,603

—

—

4,784
21,941

2,136
32,142

1,225
26,882

691
7,294

306
306

20
20

Within 1 year
Bonds with
subscription
rights to shares
Long-term loans
payableLease obligations
Total- 40 -

Over 5 years

(Securities)
For the year ended March 31, 2013
1.

Available-for-sale securities
Type(Millions of yen)Amount on the
consolidated balance sheet

Acquisition cost

Difference

Those whose value
recorded on the
consolidated balance
sheet exceeds theacquisition cost

(1)

Stocks20,01011,734

8,276

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

20,01011,734

8,276

Those whose value
recorded on the
consolidated balance
sheet does not exceed
the acquisition cost

(1)

Stocks

505

522

(17)

(2)

Bonds

—

—

—

Other

—

—

—

Subtotal

505

522

(17)

Note:

2.

(3)

Total
20,515
12,257
8,258
It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is 2,081
million yen) because they do not have quoted market prices. Therefore, they are excluded from the above table of “Available-for-salesecurities.”

Available-for-sale securities sold during the year ended March 31, 2013
Type

Sale amount(Millions of yen)

Total capital gains

Total capital losses(1)

Stocks

462

56

—

(2)

Bonds

—

—

—

(3)

Other

8

—

—

471

56

—

Total

3.

Securities on which impairment losses were recognized
For the fiscal year under review, the Company recognized impairment losses of 1,628 million yen on securities.
The Company recognizes impairment losses on all listed shares if their market value is no more than 70% of
the book value as of the end of the fiscal year. We recognize impairment losses on other securities in theamount considered necessary if their actual value as of the end of the fiscal year dropped by 30% or morecompared to their book value, taking into account the possibility of collection, etc.

- 41 -

For the year ended March 31, 2014
1.

Available-for-sale securities
Type(Millions of yen)Amount on the
consolidated balance sheet

Acquisition cost

Difference

Those whose value
recorded on the
consolidated balance
sheet exceeds theacquisition cost

(1)

Stocks

24,522

12,484

12,037

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

24,522

12,484

12,037

Those whose value
recorded on the
consolidated balance
sheet does not exceed
the acquisition cost

(1)

Stocks

273

292

(19)

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

273

292

(19)

Note:

2.

Total
24,795
12,776
12,018It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is 1,324
million yen) because they do not have quoted market prices. Therefore, they are excluded from the above table of “Available-for-salesecurities.”

Available-for-sale securities sold during the year ended March 31, 2014
Type

Sale amount(Millions of yen)

Total capital gains

Total capital losses(1)

Stocks

431

0

—

(2)

Bonds

—

—

—

(3)

Other

—

—

—

431

0

—

Total

3.

Securities on which impairment losses were recognized
For the fiscal year under review, the Company recognized impairment losses of 3 million yen on securities.
The Company recognizes impairment losses on all listed shares if their market value is no more than 70% of
the book value as of the end of the fiscal year. We recognize impairment losses on other securities in theamount considered necessary if their actual value as of the end of the fiscal year dropped by 30% or morecompared to their book value, taking into account the possibility of collection, etc.

- 42 -

(Retirement Benefit)
For the year ended March 31, 2013
1.

2.

Outline of retirement benefit plan
The Company and its major domestic consolidated subsidiaries adopt a contributory trusted pension plan
based on a cash balance scheme and an unfunded retirement benefit plan as its defined benefit pension
system. In addition, the Yamato Group Life Plan pension scheme was introduced as a defined contribution
retirement plan.
Certain consolidated subsidiaries adopt a defined contribution retirement system.
During the fiscal year ended March 31, 2013, certain consolidated subsidiaries withdrew from the cooperative
welfare pension fund which they were affiliated with.
Retirement benefit obligations(Millions of yen)a. Retirement benefit obligations(112,492)
64,926(47,566)
9,502(38,063)
114(38,178)b. Pension assetsc. Unfunded retirement benefit obligations (a + b)
d. Unrecognized actuarial difference
e. Net amount on consolidated balance sheet (c + d)
f. Prepaid pension costg. Provision for retirement benefits (e - f)Note: Some consolidated subsidiaries adopt a simplified method of calculating retirement benefit obligations.

3.

(Millions of yen)

Retirement benefit expenses

a. Service cost

7,105
1,946
3,399
12,451b. Interest costc. Recognized actuarial difference

d. Retirement benefit expenses (a + b + c)
Notes:
1. In addition to the above retirement benefit expenses, 2,053 million yen is booked for fiscal 2013 as retirement benefit expenses
for a defined contribution retirement plan, etc.
2. Employee contribution to contributory trusted pension plan is deducted.
3. Retirement benefit expenses of consolidated subsidiaries using a simplified method are included in “a. Service cost.”

4.
Basis for calculating retirement benefit obligations, etc.
a. Periodic allocation method for projected retirement benefits
b. Discount ratec. Expected rate of returnd. Recognition period of actuarial difference
Note:

Straight-line standards
1.3%
0.0%
*5 years

Actuarial differences are to be charged to expenses from the following fiscal year using a straight-line method based on determined
years within average remaining service years of the employees when occurred.

- 43 -

For the year ended March 31, 2014
1.

Outline of retirement benefit plan
The Yamato Group adopts a contributory trusted pension plan based on a cash balance scheme and an
unfunded retirement benefit plan as its defined benefit pension system. In addition, the Yamato Group Life Plan
pension scheme was introduced as a defined contribution retirement plan.

2.

Defined benefit plans(1) Reconciliation of retirement benefit obligation beginning and ending balances(Millions of yen)
Retirement benefit obligation at beginning of current period
Service cost
Interest cost
Actuarial difference arising during period
Retirement benefits paid

112,492
8,910
1,442
744

(4,458)

Prior service cost arising during period
Other

3

(0)

Retirement benefit obligation at end of current period
119,135
Note:
Some consolidated subsidiaries adopt a simplified method of calculating retirement benefit obligations.

(2) Reconciliation of pension asset beginning and ending balances(Millions of yen)
Pension assets at beginning of current period
Expected return
Actuarial difference arising during period
Employer contributions
Retirement benefits paid

64,926
649
4,516
3,880

Pension assets at end of current period

72,078(1,893)(3) Reconciliation of ending balances of retirement benefit obligations and pension assets with consolidatedbalance sheet net defined benefit assets and liabilities(Millions of yen)
Retirement benefit obligations of funded plans
Pension assets

50,035(72,078)

Retirement benefit obligations of unfunded plans(22,043)
69,100Net of consolidated balance sheet assets and liabilities

47,056

Net defined benefit liability
Net defined benefit asset

47,224(167)

Net of consolidated balance sheet assets and liabilities
47,056
Note:
These figures combine offsetting amounts for net defined benefit assets and liabilities that have been stated by the Company
and its individual consolidated subsidiaries.

(4) Retirement benefit expense and its components(Millions of yen)
Service cost
Interest cost
Expected return
Recognized actuarial difference
Recognized prior service cost
Other

8,910
1,442
(649)
3,047
3
(5)

Retirement benefit expense related to defined benefit plans

12,749- 44 -

(5) Remeasurements of defined benefit plans
The following table provides a breakdown of the components making up remeasurements of defined
benefit plans (pre-tax).
(Millions of yen)
(2,683)

Unrecognized actuarial difference
Total(2,683)(6) Pension assets
a. Primary components of pension assets
Pension asset components as a percentage of total pension assets are as follows.
General accounts
Bonds
Stocks
Other

34%
26%
21%
19%

Total

100%

b. Method of determining long-term expected rate of return
The long-term expected rate of return for pension assets is determined on the basis of the distributionof pension assets, past performance of respective assets that make up pension plan investments, andmarket trends.
(7) Matters concerning actuarial assumptions
Primary actuarial assumptions at fiscal year-end
Discount rateLong-term expected rate of return

3.

1.3%
1.0%

Defined contribution retirement plan
Required contributions to the defined contribution retirement plan of the Company and its consolidated
subsidiaries amount to 2,089 million yen.

- 45 -

(Per Share Information)
Fiscal 2013
1,261.35 yen
81.85 yen
79.84 yen

Net assets per share
Net income per share
Net income per share - fully diluted
Note:

The basis for calculating “net income per share” and “net income per share - fully diluted” is as follows.
Fiscal 2013

Fiscal 2014
1,316.12 yen
82.22 yen
80.18 yen
Fiscal 2014

Net income per share
Net income
Amount not belonging to ordinary shareholders
Net income concerning common shares
Average number of shares during the period

35,144 million yen

34,776 million yen— million yen— million yen

35,144 million yen

34,776 million yen

429,377 thousand shares

422,941 thousand shares— million yen— million yen

Net income per share - fully diluted
Adjustments in net income
Increase in number of common shares

10,810 thousand shares

10,810 thousand shares(Subscription rights to shares)(10,810 thousand shares)(10,810 thousand shares)

Potential shares that have no dilutive effects and thus are not included in
the calculation of “net income per share - fully diluted.”——(Important Subsequent Matters)
Not applicable.
(Other Notes, etc.)
Notes regarding “lease transactions,” “related party transactions,” “derivative transactions,” and “asset retirement
obligations” are omitted, as there is no significant necessity of disclosure in this financial results report.

- 46 -

5.

OthersOperating revenue by business(Millions of yen)
Business segment

DeliveryFinancial

Autoworks
*1

8.9
(1.8)

Kuroneko Mail

128,30910.0

126,035

9.2

Express

42,635

3.3

45,047

3.3

5.7

Others65,116

5.1

63,785

4.6

(2.0)

%

(88,013)(6.8)(94,748)

(6.9)

7.7

1,028,219

80.2

1,098,692

79.9

6.9

Trading logistics service

36,4792.8

39,0372.8

7.0

Retail logistics service

30,1802.4

31,103

2.3

3.1

Multi maintenance

8,714

0.7

9,870

0.7

13.3

Export Factory

3,701

0.3

3,781

0.3

2.2

Others35,2962.8

36,311

2.7

2.9(27,566)(2.2)(29,850)

(2.2)

8.3

Total

86,806

6.8

90,2546.6

4.0

Home convenience

40,586

3.2

42,801

3.1

5.5

Business convenience

18,788

1.5

20,1071.4

7.0

Eliminations(14,773)(1.2)(14,186)

(1.0)

(4.0)
9.2

Total

44,601

3.5

48,7233.5

e-logistics solution

10,1370.8

10,7660.8

6.2

Credit card solution

7,092

0.6

7,890

0.6

11.3

IT operating solution

4,383

0.3

5,082

0.4

15.9

Web-based mail order solution

7,075

0.5

8,062

0.6

13.9

Others39,7393.1

42,172

3.0

6.1

Eliminations(31,368)(2.4)(32,437)

(2.4)

3.4

Total

37,0602.9

41,537

3.0

12.1

TA-Q-BIN Collect

37,7102.9

40,178

2.9

6.5

Lease

18,124

1.4

20,896

1.5

15.3

Credit & Finance

3,278

0.3

3,239

0.3

(1.2)

Others

1,584

0.1

2,061

0.2

30.1

Eliminations(3,987)(0.3)(3,647)

(0.3)

(8.5)

Total

56,7104.4

62,727

4.6

10.6

Truck maintenance

47,2793.7

49,651

3.6

5.0

OthersEliminations

5,909

0.4

6,507

0.5

10.1

(29,960)(2.3)(30,508)

(2.2)

1.8
10.4

23,2281.8

25,6501.9

JITBOX Charter service

3,504

0.3

4,677

0.3

33.5

Others56,587

4.4

64,434

4.7

13.9(54,345)(4.3)(62,089)

(4.5)

14.2

5,746

0.4

7,022

0.5

22.2

100.0

7.2

Eliminations
Total

*

%
69.7

958,573

Total

Other

Change%68.6

Eliminations

e-Business

Ratio

880,171

Total

Home
Convenience

Ratio

Fiscal year ended
March 31, 2014

TA-Q-BIN

Eliminations

BIZ-Logistics

Fiscal year ended
March 31, 2013

Total
1,282,373
100.0
1,374,610
Effective from the fiscal year ended March 31, 2014, the Truck Maintenance has been renamed Autoworks.

- 47 -

6.

Non-consolidated Financial Statements(1) Non-consolidated balance sheet(Millions of yen)
As of March 31, 2013

As of March 31, 2014

AssetsCurrent assets
Cash and deposits

131,379

121,668

Operating accounts receivable

20

22

Short-term loans receivable

6,737

11,434

Deferred tax assets

298

246

Income taxes receivable

3,591

4,945

Other
Total current assets

146

1,170

142,173

139,489

Non-current assets
Property, plant and equipment
Vehicles19

14

Buildings

728

683

Tools, furniture and fixtures

104

57

Land

5,840

5,840

Other

26

22

6,719

6,618

2,200

1,858

0

1

2,200

1,859

Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities

16,95819,549

Shares of subsidiaries and associates

287,411292,251

Long-term loans receivable

11,896

31,655

97

99

Other
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets- 48 -(559)(1,927)

315,805

341,628

324,726

350,107466,899

489,597(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Liabilities
Current liabilities
Operating accounts payable

253

399

Income taxes payable

57

34

Accrued expenses

44

47

Deposits received

64,51883,453

Provision for bonuses

45

52

Other

132

258

65,051

84,24720,00020,000

Deferred tax liabilities

652

1,494

Provision for retirement benefits

61

67

Total current liabilities
Non-current liabilities
Bonds with subscription rights to shares

Other
Total non-current liabilities
Total liabilities

137

138

20,851

21,69985,903105,946

127,234

127,234

36,82236,822

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus

74,46864,041

Total capital surplus

111,290

100,863

General reserve

174,965

174,965

Retained earnings brought forward

18,53929,161

193,504

204,127

Treasury shares(56,495)(56,079)

Total shareholders’ equity

375,534

376,146

Valuation difference on available-for-sale securities

5,461

7,503

Total valuation and translation adjustments

5,461

7,503

380,996383,650

466,899

489,597

Retained earnings
Other retained earnings

Total retained earnings

Valuation and translation adjustments

Total net assets
Total liabilities and net assets- 49 -

(2) Non-consolidated statement of income(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2013
Operating revenue
Selling, general and administrative expenses

22,697
4,324

29,197
4,790

Operating income

18,373

24,407

Non-operating income
Interest and dividend income
Other

617
266

684
363

Total non-operating income

883

1,047

62
6

24
86

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Provision of allowance for investment loss
Other

68

111

19,18825,343

42

—

42

—

1,157

—

5,614
—
0

2,526
1,590
0

Total extraordinary losses

6,772

4,116

Income before income taxes

12,457

21,226

Income taxes - current
Income taxes - deferred

90
(129)

91
343

Total income taxes

(39)

435

12,497

20,791

Net income- 50 -

(3) Non-consolidated statement of changes in equity
For the year ended March 31, 2013
(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning ofcurrent period
Changes of items during
periodRetained earnings

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus36,822

84,492

121,314

127,234

Other retained earnings
Retained
Generalearnings
reservebrought
forward174,965

Total retained
earnings

15,505

190,471

Dividends of surplus(9,463)(9,463)

Net income

12,497

12,497Purchase of treasury
shares
Disposal of treasury shares
Retirement of treasury
shares(0)(0)(10,023)(10,023)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period－－(10,023)(10,023)

－

3,033

3,033

127,234

36,822

74,468111,290

174,965

18,539193,504

Shareholders’ equity
Total shareholders’equityTreasury shares
Balance at beginning of current
period(56,514)382,505

Valuation andtranslation adjustments
Valuation difference on
available-for-salesecurities
2,547

Total net assets

385,053

Changes of items during period
Dividends of surplus(9,463)(9,463)

Net income

12,497

12,497Purchase of treasury shares(10,005)(10,005)(10,005)

Disposal of treasury shares

0

0

0

Retirement of treasury shares

10,023－－

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

2,914

2,914

18

(6,971)

2,914(4,056)(56,495)

375,534

5,461

380,996- 51 -

For the year ended March 31, 2014
(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning ofcurrent period
Changes of items during
periodRetained earnings

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus36,822

74,468111,290

127,234

Other retained earnings
Retainedearnings
Generalbrought
reserveforward174,965

Total retained
earnings

18,539193,504

Dividends of surplus(10,169)(10,169)

Net income

20,791

20,791

Purchase of treasury
shares
Disposal of treasury shares
Retirement of treasury
shares00(10,427)(10,427)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period－－(10,427)(10,427)－

10,622

10,622

127,234

36,82264,041

100,863

174,965

29,161

204,127

Shareholders’ equity
Total shareholders’equityTreasury shares
Balance at beginning of current
period(56,495)

375,534

Valuation andtranslation adjustments
Valuation difference on
available-for-salesecurities
5,461

Total net assets

380,996

Changes of items during period
Dividends of surplus(10,169)(10,169)

Net income

20,791

20,791

Purchase of treasury shares(10,011)(10,011)(10,011)

Disposal of treasury shares

0

0

0

10,427－－Retirement of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

2,041

2,041

416

611

2,041

2,653

(56,079)

376,146

7,503

383,650- 52 -