REVITALIZINGAt a Glance

Segment

DeliveryBusiness Description

Performance

Sales and Sales Composition

The Delivery business covers a diverse array of services, among them
Takkyubin, Cool Takkyubin, Collect Service, and Kuroneko Mail. With theexception of certain regions, Takkyubin next-day parcel delivery service isavailable throughout Japan. Yamato Transport also operates a secure parcel
tracking system, allowing the Company to manage parcel shipping status andrealize high-quality service. During the year under review, overall delivery
volume climbed to 1,011 million units.

Amid strong Takkyubin performance during the year, Cool
Takkyubin volume was a brisk 122 million units. This, in conjunction with a sharp increase in Kuroneko Mail volume following revisions made to this service, led to favorable resultsin the Delivery business. Total operating revenue, including
rail-freight forwarding, domestic air freight and others, was¥834,495 million, a year-on-year increase of 4.3%.

Sales (¥ millions)

The BIZ-Logistics business encompasses an infrastructure that enables
Yamato Transport to offer logistics services fully linking Japan and locations
overseas. These services include international marine forwarding, customs
clearance services, the transportation of works of art, and international moving
operations. Through the BIZ-Logistics business, Yamato Transport can provide
customers with the optimized logistics systems they demand.

On April 1, 2003, part of the Logistics Business was spun off
to Yamato Logistics Corporation, while marine forwarding,customs clearance, transportation of works of art andinternational moving operations were transferred to Yamato
Global Freight Co., Ltd. As a result of this aggressive
reorganization of services, operating revenue rose 3.6% to¥90,236 million.

Sales (¥ millions)

The Home Convenience business combines moving services and merchandise
marketing, aligning these services to meet diversifying customer needs.
Moving services are aimed at families and individuals, and cover a range ofrelated customer services, like the rearranging of furniture. Merchandise
marketing, meanwhile, involves online sales and other services.

In this business segment, moving service operations at each of
the Company’s bases were separated and merged by region
with Yamato Home Service Co., Ltd., a home service
subsidiary, which was renamed Yamato Home Convenience
Co., Ltd. and started actively marketing these services. Despite
this, operating revenues declined 2.4% to ¥42,611 million.

Sales (¥ millions)

Leveraging know-how accumulated over the course of Yamato Transport’s
operations, the e-Business segment is involved in outsourced information
processing, as well as the operation and management of computer systems.

A new data center, designed to provide safe, reliable andcompetitively priced services, was completed in Koto-ku,
Tokyo in April 2003, helping Yamato Transport to actively
promote e-Business. As a result, operating revenues increased
6.9% to ¥21,082 million.

Sales (¥ millions)

Financial services were actively promoted through campaigns
and other initiatives to increase delivery volumes for thissegment’s core Collect Service. As a result, operating
revenues, including Collect Service fees and leasing income,increased 8.1% to ¥22,920 million.

Sales (¥ millions)

BIZ-Logistics’03

800,463’04

834,495’03

87,102’04

90,236’03

43,642’04

42,611

82.5%

8.9%

4.2%

Home Convenience’03

19,728’04

21,0822.1%

e-Business
The Financial segment includes financial services targeted at businesscustomers and consumers, such as settlement and collection.

’03

21,200’04

22,920

2.3%

Financial

14YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

15

REVITALIZINGAt a Glance

Segment

DeliveryBusiness Description

Performance

Sales and Sales Composition

The Delivery business covers a diverse array of services, among them
Takkyubin, Cool Takkyubin, Collect Service, and Kuroneko Mail. With theexception of certain regions, Takkyubin next-day parcel delivery service isavailable throughout Japan. Yamato Transport also operates a secure parcel
tracking system, allowing the Company to manage parcel shipping status andrealize high-quality service. During the year under review, overall delivery
volume climbed to 1,011 million units.

Amid strong Takkyubin performance during the year, CoolTakkyubin volume was a brisk 122 million units. This, in conjunction with a sharp increase in Kuroneko Mail volume following revisions made to this service, led to favorable resultsin the Delivery business. Total operating revenue, including
rail-freight forwarding, domestic air freight and others, was¥834,495 million, a year-on-year increase of 4.3%.

Sales (¥ millions)

The BIZ-Logistics business encompasses an infrastructure that enables
Yamato Transport to offer logistics services fully linking Japan and locations
overseas. These services include international marine forwarding, customs
clearance services, the transportation of works of art, and international moving
operations. Through the BIZ-Logistics business, Yamato Transport can provide
customers with the optimized logistics systems they demand.

On April 1, 2003, part of the Logistics Business was spun off
to Yamato Logistics Corporation, while marine forwarding,customs clearance, transportation of works of art andinternational moving operations were transferred to Yamato
Global Freight Co., Ltd. As a result of this aggressive
reorganization of services, operating revenue rose 3.6% to¥90,236 million.

Sales (¥ millions)

The Home Convenience business combines moving services and merchandise
marketing, aligning these services to meet diversifying customer needs.
Moving services are aimed at families and individuals, and cover a range ofrelated customer services, like the rearranging of furniture. Merchandise
marketing, meanwhile, involves online sales and other services.

In this business segment, moving service operations at each of
the Company’s bases were separated and merged by region
with Yamato Home Service Co., Ltd., a home service
subsidiary, which was renamed Yamato Home Convenience
Co., Ltd. and started actively marketing these services. Despite
this, operating revenues declined 2.4% to ¥42,611 million.

Sales (¥ millions)

Leveraging know-how accumulated over the course of Yamato Transport’s
operations, the e-Business segment is involved in outsourced information
processing, as well as the operation and management of computer systems.

A new data center, designed to provide safe, reliable andcompetitively priced services, was completed in Koto-ku,
Tokyo in April 2003, helping Yamato Transport to actively
promote e-Business. As a result, operating revenues increased
6.9% to ¥21,082 million.

Sales (¥ millions)

Financial services were actively promoted through campaigns
and other initiatives to increase delivery volumes for thissegment’s core Collect Service. As a result, operating
revenues, including Collect Service fees and leasing income,increased 8.1% to ¥22,920 million.

Sales (¥ millions)

BIZ-Logistics’03

800,463’04

834,495’03

87,102’04

90,236’03

43,642’04

42,61182.5%

8.9%

4.2%

Home Convenience’03

19,728’04

21,0822.1%

e-Business
The Financial segment includes financial services targeted at businesscustomers and consumers, such as settlement and collection.

’03

21,200’04

22,920

2.3%

Financial

14

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

15