Translation
January 30, 2019

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2019
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Director, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
February 14, 2019
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the third quarter of fiscal year 2019
(cumulative: from April 1, 2018 to December 31, 2018)(1) Consolidated operating results

For the nine months ended
December 31, 2018
December 31, 2017
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
1,257,610
7.3
74,343131.4
73,644127.5
43,194147.8
1,171,775
4.8
32,131(44.7)
32,378(44.4)
17,429(51.2)For the nine months ended December 31, 2018: 41,264 million yen (68.1 %)For the nine months ended December 31, 2017: 24,549 million yen ((31.2) %)Basic earnings per share

For the nine months ended
December 31, 2018
December 31, 2017

Diluted earnings
per shareYen
109.55
44.21

Yen
—
—

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
December 31, 2018
1,216,355
587,666
47.7
March 31, 2018
1,114,870
557,586
49.4(Reference) Equity:
As of December 31, 2018: 580,351 million yen As of March 31, 2018: 550,307 million yen(Note) The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February
16, 2018) and relevant Guidances effective from the beginning of the first quarter of the fiscal year ending March 31, 2019. The figures
presented for the consolidated financial position for the previous fiscal year reflect amounts that have been adjusted retrospectively toreflect the aforementioned standard, etc.

2.

Dividends
First quarter
Yen——

Second quarter
Yen
13.00
14.00

Fiscal 2018
Fiscal 2019
Fiscal 2019 (Forecast)(Note) Revisions to the forecasts most recently announced: None

Annual dividends
Third quarter
Yen——

Fiscal year-end
Yen
14.00
14.00

Total
Yen
27.00
28.00

3.

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

Operating profit

Millions of yen%
Millions of yen%
Full year
1,630,000
5.9
67,00087.8(Note) Revisions to the forecasts most recently announced: Yes(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
67,00085.7
37,000102.9
93.84* Notes(1) Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements (Application of specific accounting for preparing the quarterly consolidated financial statements)” of the attached materials
to the quarterly financial results report on page 13.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of December 31, 2018:
411,339,992 shares
As of March 31, 2018:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of December 31, 2018:
17,065,319 shares
As of March 31, 2018:
17,064,197 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2018:394,275,213 shares
For the nine months ended December 31, 2017:394,276,825 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For
points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of Accounts for
the Nine Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements” of the attached materials to thequarterly financial results report on page 8.
• The Company plans to hold a financial results meeting for analysts on January 31, 2019. The materials distributed at this financial resultsmeeting shall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index
1. Qualitative Information on Settlement of Accounts for the Nine Months................................................................. 2(1) Explanation of operating results ...................................................................................................................... 2(2) Explanation of financial position ...................................................................................................................... 8(3) Explanation of consolidated earnings forecasts and other forward-looking statements .................................. 8
2. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 9(1) Consolidated balance sheet ............................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income .......................... 11
Consolidated statement of income (cumulative) ............................................................................................ 11
Consolidated statement of comprehensive income (cumulative) .................................................................. 12(3) Notes to consolidated financial statements ................................................................................................... 13(Notes to premise of going concern) ............................................................................................................. 13(Notes on significant changes in the amount of shareholders’ equity)........................................................... 13(Changes in scope of consolidation and equity method application) ............................................................. 13(Application of specific accounting for preparing the quarterly consolidated financial statements) ............... 13(Additional information).................................................................................................................................. 13(Segment information, etc.) ........................................................................................................................... 14
3. Supplementary Information .................................................................................................................................. 16
Operating revenue by business............................................................................................................................ 16-1-

1. Qualitative Information on Settlement of Accounts for the Nine Months(1) Explanation of operating results
During the nine months of the fiscal year ending March 31, 2019, the economic environment was plagued byongoing uncertainties ahead due to factors that have included effects of political developments overseas, yet
gradual economic recovery held course amid underlying strengths in corporate earnings. Moreover, thelogistics industry continues to face a severe business environment partially due to tightening of the domestic
labor market, which is in addition to an upward trend with respect to small parcel volume partially due toexpansion of the e-commerce market brought about by rapidly changing styles of consumption.
Under such circumstances, the Yamato Group has been striving to enhance its management foundations inorder to continue achieving sustainable growth and thereby enable the Group to keep providing high-quality
services based on “KAIKAKU 2019 for NEXT100” medium-term management plan, which while “reforming
working styles” is centered on management, focuses on reforms in the three areas of “structural reform in the
Delivery Business,” “reform of revenue and business structure geared to achieving discrete growth,” and“reform of Group management structure geared to achieving sustainable growth.”
In the Delivery Business, we promoted our initiatives to rebuild our “last mile” network that include adequate
pricing initiatives and enhancement of collection and delivery systems to live up to the trust and expectations ofcustomers in order to strike a balance between regaining profitability and expanding collection and delivery
capacity. As a result, our financial performance was firm due to rise in TA-Q-BIN unit price, despite increasing
expenses related to our reform initiatives.
In the non-delivery businesses, we continuously took steps to expand our existing service offerings by enlisting
the strengths of Group companies, while also drawing on Group-wide ties as we aggressively promoted
solution sales geared toward addressing customers’ business challenges.
Our consolidated financial results for the period under review are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

For the nine months ended
December 31, 2017
1,171,775
32,131
32,378For the nine months ended
December 31, 2018
1,257,610
74,34373,644

17,42943,194

ChangeGrowth (%)

85,83542,211
41,266

7.3
131.4
127.5

25,764147.8

As mentioned above, operating revenue amounted to 1,257,610 million yen, up 85,835 million yen from theyear-ago period. This is largely attributable to a continuous increase in the TA-Q-BIN unit price, and despite adecrease in TA-Q-BIN delivery volume in the nine months ended December 31, 2018 amid promotion of
structural reforms in the Delivery Business. Operating expenses amounted to 1,183,267 million yen, up 43,623
million yen from the year-ago period. This is largely attributable to an increase in personnel expenses anddespite a decrease in commission expenses, mainly as a result of having increased the workforce looking
toward building collection and delivery systems.
As a result, operating profit amounted to 74,343 million yen, up 42,211 million yen from the year-ago period.
Meanwhile, due to a situation where Yamato Home Convenience Co., Ltd. was found to have inappropriately
billed employees of our corporate clients for moving services, the above consolidated financial results factor inan estimated effect of the incident amounting to 3,104 million yen, based on investigation results.
Initiatives for the entire Yamato Groupa.

The Yamato Group has been taking steps on a Group-wide basis to develop an upbeat working
environment, which is more “employee-friendly” and “rewarding,” centered on the “Office for Reforming
Working Styles” established in Yamato Transport Co., Ltd., and its “Working Styles Innovation Committees”
in its respective Group companies, as a means of placing utmost priority on “reforming working styles” in

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b.

c.

d.

e.

order to practice “inclusive management,” a Yamato Group founding principle. Moreover, we have been
pursuing our “Value Networking” design, on the basis of creating business models for generating a highlevel of added value through the combined efforts of our respective businesses, while at the same time
contributing to growth strategies and international competitive strengths of the Japanese economy.
Meanwhile, we are also taking steps to forge a robust corporate culture that acts as a foundation forbusiness creation and development.
We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we
worked on enhancing the efficiency and dependability of operations, in part by improving our transportsystems and by using our information technology network to enable visual monitoring of operating
volumes. Moreover, we actively engaged in CSR-related activities linked to Yamato Group businessendeavors, such as through safety and environmental measures, and efforts to prosper communities.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we will make more effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Okinawa International Logistics Hub,” and respective
gateways linking major cities in the Kanto, Chubu, and Kansai regions, in addition to our existing “last mile”
network.
In our business looking toward global markets, we have been working to forge collaboration among five
regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening our capabilities
in each geographic region to respond to the growth of cross-border logistics. During the period underreview, we have been actively promoting efforts to build cross-border networks that provide substantial
added value by leveraging our certification under international standards pertaining to small parcel chilled
and frozen goods delivery services, such that has already been acquired by eight Yamato Group
companies.
With the aim of improving customer convenience particularly in the e-commerce market, we have been
continuously working to establish an environment that ensures customers ease in picking up their parcels.
To that end we have been actively promoting efforts to build an open-type network of parcel lockers
primarily in train stations, convenience stores and other such locations, and have worked on other efforts
for the development of next-generation logistics services including the utilization of automated driving
technologies. Moreover, we have been taking steps that involve digitization and automation of our overalllogistics operations in order to address challenges presented by society such as the labor shortage as it
intensifies, and in order to better serve the rapidly expanding e-commerce market.

Summary of each operating segment

 Delivery
The delivery volumes of TA-Q-BIN and Kuroneko DM-Bin services are as follows.
(Million parcels / units)
Category
TA-Q-BIN
Kuroneko DM-Bin

a.
b.

c.

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

For the nine months ended
December 31, 2018
1,400
926

Change(45)(185)

Growth (%)(3.1)(16.7)In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
Amid a severe business environment partially due to tightening of the domestic labor market, which is inaddition to an upward trend with respect to small parcel volume partially due to expansion of the
e-commerce market brought about by rapidly changing styles of consumption, during the period underreview, continuing on from the previous fiscal year, we promoted our initiatives to rebuild our “last mile”
network that include adequate pricing initiatives and enhancement of collection and delivery systems tolive up to the trust and expectations of customers in order to strike a balance between regaining
profitability and expanding collection and delivery capacity. In addition, we also engaged in efforts geared
to structural reform of trunk-route networks for the purposes of further streamlining transportation andoptimizing the entire network.
In the still growing e-commerce market, we have been taking steps to expand sales of the “TA-Q-BIN
Compact” and “Nekopos” services which enable customers to send small parcels simply, and proceeded

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d.

e.

f.

with offering a greater number of drop-off points for sending by collaborating with multiple flea market
websites. During the period under review, we continued to team up with e-commerce companies inoffering a service environment where customers who have purchased a product are able to specify eithera business office of Yamato Transport Co., Ltd., a convenience store or an open-type parcel locker (PUDO
station) as a location for pick-up, while also promoting use of our “Kuroneko Members” service forindividual customers. Meanwhile we have also been working in conjunction with flea market websites ande-commerce companies in efforts to provide greater convenience by developing a service environmentthat makes it easier for individual customers to ship merchandise from PUDO station open-type parcel
lockers.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. Moreover, we have been working to boost profitability bymaking proposals that provide high added value using the Group’s business resources. During the period
under review, we continued our efforts to support business of our customers through initiatives that haveincluded promoting membership in the “Yamato Business Members” service for corporate clients, offering
them enhanced features that provide greater convenience.
We have been taking steps to improve services for residents geared toward resolving issues facing
communities. In part, this has involved collaborating with numerous municipalities and companies in efforts
that entail helping those who have difficulties doing their shopping and helping to watch over elderly
residents. Moreover, we have also been helping to revitalize local industry particularly through initiatives
that involve supporting tourism and helping to expand sales channels for locally produced products.
Operating revenue amounted to 1,006,762 million yen, up 9.2% from the year-ago period owing to ahigher TA-Q-BIN unit price despite a decrease in TA-Q-BIN delivery volume in the period under review asa result of promotion of “structural reforms in the Delivery Business.” Amid increasing expenses related toour reform initiatives, operating profit amounted to 59,427 million yen, an improvement of 49,730 million
yen from the year-ago period.

 BIZ-Logistics
a.

b.

c.
d.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
For the e-commerce industry and others, we are offering one-stop services for various types of logisticalsupport services in line with customer needs, including placing and accepting orders, visual monitoring of
inventories for customers and enabling speedier shipments. During the period under review, we continued
to promote efforts to increase sales of this service, particularly among our existing customers.
For medical service providers, we have been developing medical device loaner support (storage, cleaningand delivery) and other services that help revolutionize logistics operations. During the period underreview, use of this service increased particularly among our existing large-lot customers.
Operating revenue amounted to 114,037 million yen, up 6.5% from the year-ago period mainly as a resultof our having expanded sales of trading logistics services as well as maintenance and recall services, andalso due to progress made in providing industry-specific solutions. Operating profit amounted to 3,119
million yen, down 41.9% from the year-ago period mainly as a result of having incurred upfront expenses
to achieve business growth.

 Home Convenience
a.
b.

c.

In the Home Convenience Business, we have been working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise business that draw on the Yamato Group’s nationwide network.
With respect to individual customers, the Yamato Group has been providing a variety of services to assistin daily life such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items andhome appliances, and the “Comfortable Lifestyle Support Service” which aims to help customers resolve
everyday inconveniences inside the home.
For our corporate clients, we have been providing services such as those involving equipment transport
for office relocations and event-related deliveries.

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d.

Operating revenue amounted to 25,638 million yen, down 20.1% from the year-ago period. The decrease
was partially a result of having stopped taking new orders with respect to all moving-related services,
including those involving individual customers, and also a result of having factored in an estimated effectamounting to 3,104 million yen based on investigation results with respect to a situation involving
inappropriate billing for moving-related services provided to employees of corporate clients. As for profits,
the segment posted an operating loss of 6,609 million yen partially because of the stop on taking neworders with respect to all moving-related services, and also because of the aforementioned estimatedeffect of the incidents on profits.

 e-Business
a.

b.

c.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively developing solution platform business that combines logistics technology
and financial technology with information technology. In addition, with the aim of helping to accelerate
growth of Yamato Group businesses, we have been moving beyond conventional information technologies
through efforts geared to promoting use of emerging technologies that harness artificial intelligence (AI),the Internet of things (IoT) and other such innovations.
We have been offering the “Certified Web Retrieval Service” for the financial industry which enables
subscribers to safely and simply submit documentation. The service helps our customers streamline theiradministrative operations by enabling service subscribers to use their smartphones, personal computersand other such devices to upload identification papers and other documents necessary when completing
application processes. During the period under review, we continued to actively expand sales of theservice to the banking and insurance industry.
Operating revenue amounted to 20,037 million yen, down 4.0% from the year-ago period mainly due toeffects of a decrease in the number of projects involving system processing for customers stemming froma decrease in TA-Q-BIN delivery volume, and despite having increased sales of the “Certified Web
Retrieval Service” and having made progress in capturing more system configuration business as a resultof enhanced sales activities for our existing customers. Operating profit amounted to 7,026 million yen, up
10.9% from the year-ago period mainly due to firm results with respect to use of our highly profitable
existing services.

 Financial
a.
b.

c.

d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the period under review, we have been taking steps to expand
sales of our “Raku-uru Cart” service. This service helps business operators newly enter the e-commercemarket, which is poised for expansion going forward, by providing one-stop support in terms of shopping
cart function, payment settlement and delivery services. Moreover, we focused on improving our service
offerings in part by promoting increased sales of our ID-linked “Kuroneko Pay” service that links “Kuroneko
Member” information with purchases to promote greater convenience to customers who use online
shopping while also helping e-commerce companies increase their sales.
In the lease services business, we have been working to expand business of financial leases primarily
involving trucks and installment sales. We have also been developing peripheral operations that include
providing vehicle referrals and resale support, while forging ahead in making proposals involving totalsolutions related to vehicles.
Operating revenue amounted to 60,609 million yen, down 3.1% from the year-ago period mainly due to adecrease in “TA-Q-BIN Collect” delivery volume largely stemming from a shrinking market for
cash-on-delivery brought about by changing payment settlement needs, and despite increases in the useof our “Kuroneko Web Collect” and “Kuroneko Pay After Delivery Services.” Operating profit was 5,634
million yen, down 10.9% from the year-ago period.

-5- Autoworks
a.

b.

c.

In the Autoworks Business, the Yamato Group provides its 24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation, which involves carrying out
periodic maintenance under a membership framework, thereby providing value to logistics operations
providers in the form of “improvement of vehicle maintenance convenience” and “maintenance expense
reduction.” Furthermore, we provide services that help our customers improve their asset utilization ratios,by adding options of “maintaining and safeguarding logistics facilities and equipment, and improving such
workplace environments,” along with “offering insurance plans tailored to customer risk management
needs” which provide coverage for such assets.
In vehicle maintenance services, we have embarked on efforts to handle new areas of business. For
instance, this has involved providing support for reducing workloads of sales drivers and ensuring safe
vehicle operation, carrying out inspections and maintenance of small electric trucks with lower exhaustemissions and large electric buses that are being put to use in tourism destinations, and developing the“Smart Tenko” driver roll call system which enables transportation companies to achieve higher quality
operation management by drawing on data regarding employees and vehicles using Internet of things(IoT) technologies.
Operating revenue amounted to 19,451 million yen, up 5.3% from the year-ago period largely as a resultof an increase in the number of vehicles serviced. Operating profit was 3,618 million yen, up 2.8% fromthe year-ago period mainly due to progress made in streamlining business processes, particularly in termsof standardizing and enabling visual monitoring of business operations by introducing production methodsof manufacturers.

 Othera.

b.

The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-volume delivery. During the period under review, service use grew steadily due tofavorable results with respect to existing services.
Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
decreased 4.0% from the year-ago period to 1,757 million yen.

CSR Initiatives
a.

b.

c.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures such as the “Zero Traffic Accidents Campaign” carried out by the entire Yamato Group including
its overseas operations. During the period under review, Yamato Transport Co., Ltd. held the “8thNationwide Safety Competition” and engaged in efforts to enhance the skills of the Group’s professional
drivers with respect to safe vehicle operation, while also heightening safety awareness and improving
driving skills on a Group-wide basis. In addition, since 1998 we have been holding our “Safety Classes forChildren,” through which we convey the importance of traffic safety, in day care facilities, kindergartensand elementary schools across Japan. A total of about 3.20 million people have now participated.
The Yamato Group works to ensure that its distribution mechanisms are environmentally sound, under its
policy of “Nekology” (combining “Kuroneko” with “ecology”) for promoting its environmental conservation
initiatives. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support forenvironmental education of children who will bear responsibilities of the next generation. We have heldsuch classes on an ongoing basis nationwide since 2005, attracting about 240 thousand participants so
far.
Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people can freely
enjoy a lifestyle as a member of the workforce. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment. During the period under review, our

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d.

e.

special subsidiary Swan Co., Ltd. (Swan), operator of Swan Bakery, entered into a franchise agreementwith a partner company in Vietnam and otherwise made progress in preparing to open a Swan Cafe &Bakery location in the city of Ho Chi Minh, which will make that establishment Swan’s first franchisee
overseas.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the period under review, we have initiatedour “combined passenger-cargo” operations using scheduled-route passenger buses and railways inGunma prefecture, thereby helping to improve lifestyle services for local residents by keeping scheduled
bus and railway networks running in hilly and mountainous areas where populations are substantiallydeclining and getting older, and also by streamlining distribution in those locations. We also started ourhands-free travel service in Hyogo prefecture, targeting foreign visitors to Japan. The service, which relies
on “combined passenger-cargo” operations, has been promoted in 13 prefectures. In addition, forresidents of suburban housing complexes which are undergoing changes with respect to people’s life
stages, we have been providing support for community development geared to ensuring that local
residents are able to lead comfortable lives. Our efforts have involved helping to revitalize local
communities where we have our business locations, and providing such residents with lifestyle support
services that include handling shopping and housekeeping on their behalf. Moreover, we have beenworking with government bodies in efforts geared to revitalizing communities and resolving issues byleveraging the Yamato Group’s management resources with respect to initiatives that include helping towatch over elderly residents, supporting tourism, and expanding sales channels for locally produced
products in respective regions throughout Japan. We are currently involved in 953 initiatives now being
implemented or otherwise under discussion.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on Group-wide initiatives with respect to “reforming working styles” throughdeveloping upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour employees.

-7-(2) Explanation of financial position
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) and relevant Guidances effective from the beginning of the first quarterof the fiscal year ending March 31, 2019. Accordingly, analysis and comparison of the Group’s financial position
against the fiscal year ended March 31, 2018, has been performed on the basis of figures calculated upon
retrospective application of such accounting standards and other relevant guidance.
Total assets were 1,216,355 million yen as of December 31, 2018, up 101,485 million yen from the end of theprevious fiscal year. The major factors in this were increases of 64,109 million yen in notes and accounts
receivable - trade and 27,852 million yen in property, plant and equipment.
Liabilities increased 71,406 million yen to 628,689 million yen from the end of the previous fiscal year. The
increase was largely attributable to a 42,861 million yen increase in notes and accounts payable - trade.
Total net assets were 587,666 million yen, up 30,079 million yen from the end of the previous fiscal year. Thiswas mainly attributable to an increase in retained earnings of 32,154 million yen due to the recording of profit
attributable to owners of parent of 43,194 million yen and payment of dividends of surplus of 11,039 million yen.
Accordingly, the equity ratio changed to 47.7% from the previous fiscal year’s 49.4%.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Going forward, the economic environment is likely to remain one that is plagued by ongoing uncertainties
ahead due to factors such as effects of political developments overseas, despite the prospect of gradualeconomic recovery holding course amid underlying strengths in corporate earnings.
The severe business environment affecting the logistics industry is likely to persist amid factors that include
further tightening of the domestic labor market, amid a continued upward trend with respect to small parcel
volume brought about by rapidly changing styles of consumption and other such trends.
Under such circumstances, the Yamato Group’s efforts in the Delivery Business will involve striking a balance
between regaining profitability and expanding collection and delivery capacity, which will entail promoting
initiatives to rebuild its “last mile” network including adequate pricing initiatives and enhancement of its
collection and delivery systems. Also in the non-delivery businesses, we will expand our revenue base which
will involve taking steps to expand our existing service offerings by enlisting the strengths of Group companies,
while also drawing on Group-wide ties in promoting solution sales geared toward addressing customers’
business challenges.
As for expenditures, we will focus on controlling outsourcing costs amid the likelihood of rising personnel
expenses primarily with respect to employee salaries incurred in process of promoting our “reforming working
styles” initiatives.
The consolidated earnings forecasts reflect the effects of having stopped taking new orders with respect to all
moving-related services provided by the consolidated subsidiary Yamato Home Convenience Co., Ltd.,
including those for individual customers.
The Yamato Group has made changes to the consolidated earnings forecasts for the full year of the fiscal year
ending March 31, 2019 since the announcement made on October 31, 2018.

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2. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

204,422

199,753

Notes and accounts receivable - trade

224,099

288,208

Accounts receivable - installment

46,692

46,878

Lease investment assets

52,64154,087

Merchandise and finished goods

749

723

Work in process

146

188

Raw materials and supplies

1,919

2,322

Other

30,32845,109Allowance for doubtful accounts(1,365)(1,275)

Total current assets

559,635

635,997

336,986

346,053

Accumulated depreciation(198,538)(202,350)

Buildings and structures, net

138,447

143,703

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

Vehicles

197,587

209,838(180,329)(183,910)

17,25725,928Land

174,959

174,608

Lease assets

15,66931,257

Accumulated depreciation
Vehicles, net

Accumulated depreciation(9,074)(9,277)

Lease assets, net

6,595

21,980173,144

175,589(105,347)(108,899)

Other
Accumulated depreciation
Other, net

67,797

66,690405,057

432,910

20,131

20,066

Investment securities

59,841

56,278

Other

71,251

72,080Allowance for doubtful accounts

(920)

(850)

Allowance for investment loss

(126)

(126)

130,045

127,381

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

Total investments and other assets
Total non-current assets
Total assets-9-555,235

580,358

1,114,870

1,216,355

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade155,323

198,184

Short-term loans payable

66,95285,700Current portion of bonds

10,00010,000

Lease obligations

2,239

2,773

Income taxes payable

11,01926,572

Deferred installment income

5,900

5,547

Provision for bonuses

33,20813,380Other

110,390

135,997

Total current liabilities

395,035

478,156

Bonds payable

10,00010,000Long-term loans payable

60,30029,500

Lease obligations

3,548

20,383Net defined benefit liability

75,49576,907

Other

12,903

13,741

Total non-current liabilities

162,247

150,532

557,283

628,689

Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

416,854449,009

Treasury shares(39,081)(39,085)

Total shareholders’ equity

541,821573,972

Valuation difference on available-for-sale securities

12,958

11,202Foreign currency translation adjustment

1,146

553

Remeasurements of defined benefit plans(5,618)(5,377)

Total accumulated other comprehensive income

8,486

6,378

7,279

7,314

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

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

557,586

587,666

1,114,870

1,216,355

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018

Operating revenue

1,171,775

1,257,610

Operating cost

1,101,017

1,143,652

Operating gross profit

70,758113,958

Selling, general and administrative expenses

38,626

39,615

Operating profit

32,131

74,343

Interest income

98

109

Dividend income

820

854

Other

883

897

Total non-operating income

1,803

1,861

Non-operating income

Non-operating expenses
Interest expenses

213

191

Share of loss of entities accounted for using equity method

907

1,445

Other

435

922

Total non-operating expenses

1,556

2,559

32,37873,644Gain on sales of non-current assets

155

5Gain on sales of investment securities

477

37

Total extraordinary income

633

42

Loss on retirement of non-current assets

176

197

Impairment loss

1,653

1,025

Loss on valuation of investment securities

―

23

Other

―

2

Total extraordinary loss

1,829

1,248

Profit before income taxes

31,182

72,438

Income taxes

13,442

29,027

Profit17,73943,410309

215

17,42943,194

Ordinary profit
Extraordinary income

Extraordinary loss

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

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the nine months ended
December 31, 2017

For the nine months ended
December 31, 2018

17,73943,410

Valuation difference on available-for-sale securities

5,033(1,793)Foreign currency translation adjustment

562

(593)

Remeasurements of defined benefit plans, net of tax

1,214

240

0

(0)

6,810

(2,145)24,54941,264Comprehensive income attributable to owners of parent

23,602

41,087

Comprehensive income attributable to non-controllinginterests

947

177

ProfitOther comprehensive income

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

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in scope of consolidation and equity method application)
Material changes in scope of consolidation
Yamato Multi-Maintenance Solutions Co., Ltd. is excluded from the scope of consolidation effective from thefirst quarter of the fiscal year ending March 31, 2019, because it ceases to exist upon absorption-type merger
having been carried out with Yamato Logistics Co., Ltd., the surviving company.
(Application of specific accounting for preparing the quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the quarter under review.
(Additional information)
Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting” and relevant Guidances
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) and relevant Guidances effective from the beginning of the first quarterof the fiscal year ending March 31, 2019. Accordingly, deferred tax assets were presented under “Investments
and other assets” and deferred tax liabilities were presented under “Non-current liabilities.”- 13 -

(Segment information, etc.)[Segment information]
I

For the nine months ended December 31, 2017

1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

921,814

107,043

32,07920,86962,52552,411

11,027

11,07829,2692,176

974,226
9,696

118,070
5,368

43,158(562)

50,1396,333

64,701
6,326

Reconciliation(Note 3)

Amountrecorded inconsolidated
statement ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
18,472
8,971
1,171,775―
1,171,775(2) Inter-segment operating revenue or
23,89737,592
167,453(167,453)―
transfers
Total
42,36946,564
1,339,229(167,453)
1,171,775
Segment profit (loss)
3,518
17,461
48,142(16,010)
32,131
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 17,482 million yen.
3. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

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

- 14 -

II

For the nine months ended December 31, 2018

1.

Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)
BIZ-Logistics(Note 1)

Home
Convenience(Note 1)e-Business(Note 1)

Financial

1,006,762

114,037

25,63820,03760,60950,117

9,543

10,42130,882

2,179

1,056,879
59,427

123,580
3,119

36,059(6,609)50,9197,026

62,788
5,634

Reconciliation(Note 4)

Amountrecorded inconsolidated
statement ofincome(Note 5)

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

Autoworks

Other(Notes 2, 3)

Total

Operating revenue(1) Operating revenue from19,451
11,074
1,257,610―
1,257,610
customers(2) Inter-segment operating revenue
24,92739,508167,580(167,580)―
or transfers
Total
44,37950,583
1,425,191(167,580)
1,257,610
Segment profit (loss)
3,618
19,31991,536(17,193)
74,343
Notes: 1. Effective from the first quarter of the fiscal year ending March 31, 2019, changes have been made to reportable segments forcertain businesses as a result of organizational restructuring being carried out to reform organizational structures and innovate themanagement system under the “KAIKAKU 2019 for NEXT100” medium-term management plan. As the principal points of change,
the Technical Network business, which was previously included in Home Convenience, the e-Logistics solution business, e-On
Demand solutions business, and Setup and Logistics solutions business, which previously were included in e-Business, are now
included in BIZ-Logistics. The segment information for the nine months ended December 31, 2017 has been prepared andpresented according to the new classification.
2. Other includes business-to-business distribution via JITBOX Charter 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 profit is 18,593 million yen.
4. The adjustment of segment profit resulted from eliminating transactions among segments, etc.
5. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

2.

Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment(Significant impairment loss on non-current assets)
In the Home Convenience segment, the Company has decreased the book value of an asset group withdiminished profitability to the recoverable value, and has accordingly recorded an impairment loss of 897
million yen for the nine months ended December 31, 2018.

- 15 -

3. Supplementary Information
Operating revenue by business
For the nine months ended For the nine months ended
Fiscal year ended
December 31, 2017
December 31, 2018
March 31, 2018
ChangeBusiness segment(%)
AmountRatio
AmountRatio
AmountRatio(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)
TA-Q-BIN
845,34672.1
932,784
74.2
10.3
1,099,341
71.4
Kuroneko DM-Bin
62,4095.3
55,5434.4(11.0)
82,542
5.4
Express
32,0922.7
31,7142.5(1.2)
42,456
2.8
Delivery
Others78,3996.7
77,402
6.2(1.3)
102,881
6.7
Eliminations(96,433)(8.2)(90,683)
(7.2)
(6.0)
(125,453)
(8.2)
Total
921,81478.7
1,006,762
80.1
9.2
1,201,769
78.1
Trading logistics service
28,401
2.4
32,124
2.6
13.1
39,075
2.5
Sales and Logistics
34,5492.932,3002.6(6.5)
46,4933.0
Multi maintenance
10,8680.9
12,524
1.0
15.2
15,5861.0
Products Logistics
3,575
0.3
3,958
0.3
10.7
4,797
0.3
BIZ-Logistics Technical Network*
3,380
0.3
1,211
0.1
(64.2)
4,428
0.3
e-Logistics solution*
9,229
0.8
8,498
0.7
(7.9)
12,381
0.8
Others*40,911
3.5
43,765
3.5
7.0
54,049
3.5
Eliminations(23,873)(2.0)(20,346)(1.6)(14.8)(31,663)
(2.1)
Total
107,043
9.1
114,037
9.1
6.5
145,148
9.4
Home convenience
29,814
2.5
23,5391.9(21.0)
41,938
2.7
Business convenience
13,384
1.1
12,531
1.0(6.4)
16,396
1.1
HomeConvenience Eliminations(11,119)(0.9)(10,432)
(0.8)
(6.2)
(13,467)
(0.9)
Total
32,0792.7
25,6382.0(20.1)
44,8682.9
Credit card solution
7,379
0.6
6,893
0.5
(6.6)
9,733
0.6
IT operating
5,249
0.4
5,454
0.4
3.9
6,971
0.5
Web-based mail order
4,768
0.4
4,691
0.4
(1.6)
5,899
0.4
solution
e-Business
Others*35,5993.0
37,8073.0
6.2
47,248
3.1
Eliminations(32,127)(2.7)(34,809)(2.8)
8.3(42,549)
(2.8)
Total
20,8691.8
20,0371.6(4.0)
27,303
1.8
Payment
27,045
2.3
24,5702.0(9.2)
34,883
2.3
Lease
30,0982.6
30,4192.4
1.1
40,498
2.6
Credit & Finance
2,851
0.2
2,644
0.2
(7.2)
3,768
0.2
Financial
Others
4,766
0.4
5,197
0.4
9.0
6,785
0.4
Eliminations(2,236)(0.2)(2,222)(0.2)(0.6)(2,979)(0.2)
Total
62,525
5.3
60,6094.8(3.1)
82,956
5.4
Truck solution
37,687
3.2
39,315
3.1
4.3
48,768
3.2
Others
6,756
0.6
7,144
0.6
5.7
8,868
0.6
Autoworks
Eliminations(25,971)(2.2)(27,008)(2.1)
4.0(32,994)
(2.1)
Total
18,472
1.6
19,451
1.5
5.3
24,641
1.6
JITBOX Charter service
7,650
0.7
9,660
0.8
26.3
10,467
0.7
Others41,382
3.5
43,620
3.5
5.4
48,935
3.2
Other
Eliminations(40,062)(3.4)(42,206)(3.4)
5.4(47,277)
(3.1)
Total
8,971
0.8
11,0740.9
23.4
12,1250.8
Total
1,171,775
100.0
1,257,610
100.0
7.3
1,538,813
100.0* Effective from the first quarter of the fiscal year ending March 31, 2019, changes have been made to reportable segments for certain
businesses as a result of organizational restructuring being carried out to reform organizational structures and innovate the management
system under the “KAIKAKU 2019 for NEXT100” medium-term management plan. The principal changes are shown below. The segment
information for the nine months ended December 31, 2017 and the fiscal year ended March 31, 2018 have been restated to reflect the newclassification.
• The Technical Network business that belonged to Home Convenience is included in BIZ-Logistics.
• e-Logistics solution business that belonged to e-Business is presented in BIZ-Logistics, e-On Demand solutions business and Setup
and Logistics solutions business that belonged to other in e-Business is presented in other in BIZ-Logistics.

- 16 -