Unparalleled Innovation
and Customer Satisfaction
For Local Communities in Japan and Increasingly Overseas

Annual Report 2012
For the year ended March 31, 2012

Profile

The Yamato Group consists of Yamato Holdings Co., Ltd. (“the Company”), 45 subsidiaries and7 affiliated ­companies. It is primarily involved in six business segments: Deliver y, BIZ-Logistics,
Home Convenience, e-Business, Financial and Truck Maintenance, as well as ser vices incidental tothese activities.
The goal of the Yamato Group is to help bring about a better society by further refining the
TA-Q-BIN* network, which is a part of the social infrastructure, creating services that facilitate moreconvenient, comfortable lifestyles, and developing innovative logistics systems. The Group has
managed its businesses in pursuit of this goal, toward which it will continue to strive. To this end, theGroup is working to maximize corporate value through improving quality by constantly putting ourselvesin our customers’ position, while also using the capabilities of the whole Group to develop uniqueservices that further improve convenience for our customers.
*TA-Q-BIN is the name in English for “Takkyubin,” the Yamato Group’s core small parcel delivery service.

3

Yamato Holdings Co., LTD.

Contents
2

To Our Shareholders

4

Per formance Highlights

5

A Message from the President

12

Market Data

14

At a Glance

16

Over view of Operations

		

16

Deliver y		18

BIZ-Logistics

		

20

Home Convenience		22e-Business		

24

Financial		

26

Truck Maintenance

		

28

Other

29

Organization

30

Corporate Social Responsibility

32	Repor t on the Donation Drive of Ten Yen forEver y Parcel We Deliver in Japan
33

Corporate Governance36

Directors and Auditors

38	Analysis of Financial Position andManagement Results
44

Consolidated Balance Sheet

46

Consolidated Statement of Income

47	Consolidated Statement ofComprehensive Income
Forward-Looking Statements
This annual report contains forward-looking statements concerning Yamato
Holdings’ future plans, strategies and performance. These statements represent assumptions and beliefs based on information currently available and are
not historical facts. ­Furthermore, forward-looking statements are subject to anumber of risks and ­uncertainties that include, but are not limited to, economic
conditions, customer demand, foreign currency exchange rates, tax laws andother regulations.
Yamato Holdings therefore cautions readers that actual results may differ
materially from these predictions.

48

Consolidated Statement of Changes in Equity

49

Consolidated Statement of Cash Flows

50

Notes to Consolidated Financial Statements

70

Independent Auditor’s Repor t

71

Corporate Data
Annual Report 20121

To Our Shareholders

The Yamato Group’s management philosophy is to help enrich our society by enhancing thesocial infrastructure of TA-Q-BIN networks, creating more convenient services for comfortable
lifestyles and developing an innovative logistics system. This philosophy also aims to generate sustained growth and maximize corporate value while balancing growth potential, financial soundness and operating efficiency.

Review of Fiscal 2012
In fiscal 2012, the Japanese economy as a whole showed signs of stagnation brought on by sustained yen appreciation, slowing in overseas economies due to the European debt crisis, and other factors. However, economic conditions began to gradually recover on mounting demand associated with reconstruction work following the Great East
Japan Earthquake of March 2011.
In this operating climate and in the initial year of our medium-term management plan, “DAN-TOTSU Three-Year
Plan HOP,” the Yamato Group in fiscal 2012 was unable to achieve operating income in excess of the Company’splans due in part to a decline in Kuroneko Mail handling volume associated with stricter policies on parcel acceptancethat emphasize compliance. However, the Yamato Group made progress developing new businesses for properly
responding to customers’ increasingly sophisticated needs. This, and strong TA-Q-BIN handling volume in an expanding
mail-order market, supported our performance.
Overseas, we launched the TA-Q-BIN business in Malaysia in September 2011. This business is already inoperation in Shanghai, Singapore and Hong Kong.

2

Yamato Holdings Co., LTD.

We continued to donate to our “ten yen for every parcel we deliver in Japan” initiative to fulfill our social mission
and help in the revitalization of local people’s living conditions and industrial infrastructure in the region devastatedby the Great East Japan Earthquake, and otherwise actively helped in the region’s recovery.
Operating revenues increased 2.0% year on year to ¥1,260,833 million and operating income increased 3.6% to¥66,651 million. These figures were close to record-high revenues and earnings.
Millions of Yen

Operating revenues
Delivery
Non-Delivery
Total
Operating income(Operating Margin)
Net income(Net Margin)

FY09/3

FY10/3

FY11/3

FY12/3¥  997,898
254,024
1,251,922
55,721
4.5%
25,5232.0%¥  966,480
234,354
1,200,834
61,3895.1%
32,2822.7%¥  995,651
240,869
1,236,520
64,314
5.2%
33,2082.7%¥1,014,564
246,269
1,260,833
66,651
5.3%
19,787
1.6%

ChangeIncrease/
Decrease
YoY(%)¥ 18,913
5,400
24,313
2,337–(13,421)
–

1.9
2.2
2.0
3.6
–
(40.4)–

Fiscal 2013
In fiscal 2013, which will mark the second year of our medium-term management plan, DAN-TOTSU Three-Year Plan
HOP, our goal is record-high operating income of ¥70.0 billion.
The business environment is constantly changing, but our management strategy is unwavering.
The strategy we have followed since adopting a pure holding company system in 2005 is to fully utilize theGroup’s business assets to bring about innovation in commercial distribution and help enrich society.
While generating growth in the e-Business, Financial Business and other non-delivery businesses, which boast
high profit margins in their respective domains, we will also add new value to the Delivery Business to stimulate evengreater growth in physical distribution.
High crude oil prices and increased personnel costs associated with social insurance rate reforms will push down
earnings levels temporarily, but the Yamato Group has a nationwide network extending the “last mile” to the end user.
As a logistics company, we will promote the development of new services and new businesses to accommodate
ever-advancing customer needs, as we continue providing society with new value and creating trends that will define
the future.
We intend to continue managing the company with an eye on growth in order to continue to be the logistics partner chosen and trusted by customers.
We ask our shareholders for your ongoing encouragement and support.
September 2012

Kaoru Seto

Makoto Kigawa

Representative Director and Chairman

Representative Director,
President and Executive Officer

Annual Report 20123

Performance Highlights

Thousands of
U.S. Dollars (Note)

Millions of Yen

2012
Operating revenues
Delivery
Non-Delivery
Operating costs
Selling, general and administrative
expenses
Operating income
Delivery
Non-Delivery
Income before income taxes andminority interests
Income taxes
Net income

2011

2010

2009

2008

2007

¥1,260,833 ¥1,236,520 ¥1,200,834 ¥1,251,922 ¥1,225,974 ¥1,161,568
1,014,564
995,651
966,480
997,898
981,142934,607
246,269
240,869
234,354254,024
244,832
226,961
1,163,777 1,143,006 1,110,971 1,167,764 1,129,008 1,064,044
29,20064,31440,844
23,47028,474
61,38938,34523,04428,43755,721
31,344
24,37628,786
68,18040,35027,83030,363
67,161
43,69823,463369,933
810,937501,267
309,670

45,817
26,05919,787

61,83628,491
33,20860,43428,09632,282

48,99623,34925,52367,596
31,44735,353

66,82532,47033,813

557,457
317,062
240,745
U.S. Dollars (Note)¥    46.00 ¥    73.42 ¥    71.84 ¥    57.60 ¥    79.80
44.87
73.30
71.16
56.45
78.12
22.00
22.00
22.00
22.00
22.00
1,197.26
1,173.60
1,130.33
1,073.86
1,050.99¥   75.59
74.00
20.00
1,005.63$      0.56
0.55
0.27
14.57
Thousands of
U.S. Dollars (Note)

Millions of Yen

Working capital¥  182,111 ¥  185,922 ¥  165,890 ¥  159,937 ¥  125,355 ¥  140,377
Total shareholders’ equity
514,996515,602
512,910475,815465,801
445,263
Total assets
919,295
899,363878,641
869,606
874,219829,721
Capital expenditures
48,61552,47239,70045,856
124,832
48,881
Depreciation and amortization
38,68239,58339,88342,69744,77240,150Net cash provided by operating activities
71,84387,89977,06484,463116,896
80,763$ 2,215,741
6,265,923
11,184,995
591,491
470,646874,117

Operating income margin (%)
Return on revenues (%)
Return on assets (%)
Return on equity (%)
Current ratio (%)
Shareholders’ equity ratio (%)
Assets turnover (Times)
Interest coverage ratio (Times)

5.29
1.57
2.18
3.84
164.50
56.02
1.39
90.52

5.20
2.69
3.74
6.46
170.34
57.33
1.39
73.71

5.11
2.69
3.69
6.53
159.82
58.38
1.37
88.35

4.45
2.04
2.93
5.42
158.00
54.72
1.44
58.57

5.56
2.88
4.15
7.76
144.8953.28
1.44
223.00

5.78
2.91
4.17
7.78
149.3053.66
1.43
260.66

–
–
–
–
–
–
–
–

Number of employees
Full-timePart-time
TA-Q-BIN delivery volume(Millions of parcels)
Unit price (Yen)
Kuroneko Mail handling volume(Millions of units)
Unit price (Yen)

177,301
84,29393,008

171,642
83,427
88,215167,555
82,39585,160170,662
82,601
88,061

169,836
80,843
88,993

157,653
77,17080,483

–
–
–

1,423
600

1,348
609

1,262
624

1,232
646

1,236
644

1,174
647

–
–

2,187
62

2,312
64

2,262
65

2,231
65

2,206
64

1,970
66

–
–

Note: U.S. dollar amounts have been translated, for convenience only, at the rate of ¥82.19 to U.S.$1.

4$15,340,466
12,344,133
2,996,333
14,159,596

30,40566,651
41,19925,452Yen

Per share of common stock:
Basic net income
Diluted net income
Cash dividends
Net assets per share

2012

Yamato Holdings Co., LTD.

A Message from the President

Makoto Kigawa
Representative Director,
President and Executive Officer

The Yamato Group Believes That Helping

donate ¥10 per TA-Q-BIN parcel to help in the revi-

Enrich Society Through Businesstalization of local people’s living conditions andActivities Will Maximize Corporate Value

industrial infrastructure, and continued the initia-

For me, the Great East Japan Earthquake of March2011 reaffirmed the importance of the Yamato

tive for a full year.
Based on TA-Q-BIN handling volume in the fiscal

Group’s management philosophy, which is to help

year ended March 2012, donations totaling ¥14.2

enrich our society by enhancing the social infrastruc-billion were made tax-free to the Yamato Welfare

ture of TA-Q-BIN networks, creating more convenient

Foundation, having been approved by the Minister ofservices for comfortable lifestyles and developing

Finance as “designated donations.” The foundation

an innovative logistics system.

pooled this money with donations collected from

Responding to the unprecedented damage

other companies, organizations and individuals andcaused by the earthquake, the Yamato Group

provided grants exclusively for the restoration andhelped deliver supplies to the region to assist in its

revitalization of the local infrastructure and forrecover y and fulfill the Company’s social mission,

rebuilding of the fishing and agriculture industries inwhile Group employees donated their time as vol-the region. An independent committee of experts

unteers. The Group also made the decision to

selected projects for grants under a basic policy ofAnnual Report 20125

Numerical Targets for DAN-TOTSU Management Plan 2019 and DAN-TOTSU Three-Year Plan HOP

Fiscal 2014

Fiscal 2020

Consolidated operating revenues¥1,440.0 billion

Consolidated operating income¥88.0 billion

Operating margin

6.1%

ROE

8.5%

TA-Q-BIN handling volume• 100 businesses• Domestic parcel delivery
market share: Over 50%• Non-delivery share ofoperating income:Over 50%• Overseas sales ratio:
Over 20%

1,680 million parcels
Domestic: 1,560 million• ROE: Over 11%

Overseas: 120 million

visible, quick and effective assistance. Priority was

Rising to the Challenge of Becoming

placed on types of projects that do not normally

Asia’s No. 1 Solution Provider inreceive government support.

Distribution and Lifestyle Support

As of April 26, 2012, 31 projects have received

My medium-to-long-term vision, with its target offunding, including construction of a temporary fish

fiscal 2020, when we will celebrate our 100th anni-

market in Minamisanriku, Miyagi Prefecture, and a

versary, is for the Yamato Group to become the

daycare center in Noda, Iwate Prefecture. The grants

leading provider of distribution and lifestyle support

have totaled ¥14,266 million.

solution services in Asia. We want to establish DAN-

I would like to sincerely thank everyone who

TOTSU (unassailable) positions in solution capabil-used TA-Q-BIN as well as shareholders, investors

ity, delivery quality, and customer satisfaction in thisand government officials for their understanding andcapacity in Asia.

support for the Yamato Group’s activities.
This fundraising initiative came to an end on
March 31, 2012, but we intend to continue helping
in reconstruction efforts and assisting in the recov-

It will be a major challenge, but we believe that
achieving it will enable us to substantially increase
corporate value.
In order to realize this vision, our long-term

ery of the entire region as quickly as possible

DAN-TOTSU Management Plan 2019 lays out athrough our business activities.

basic policy of executing innovations that will revive
the growth of TA-Q-BIN. The plan’s two major pillars

6

Yamato Holdings Co., LTD.

resources in our six main businesses—Delivery,
BIZ-Logistics, Home Convenience, e-Business, Financial, and Truck Maintenance—to generate innovations in commercial distribution.
I believe that this is possible precisely because
the Yamato Group has a nationwide network that
extends the “last mile” to end users.
For example, we have traditionally provided
transport and delivery services for the generalpublic, but going forward we plan to add an additional level of convenience to these services andmeet the ever-advancing needs of customers byare creating and expanding markets through development of the overseas TA-Q-BIN business and reviving
TA-Q-BIN’s growth in Japan.
The TA-Q-BIN business, which started as a con-promoting new services and businesses.
When it was first made available, TA-Q-BIN was
often used for special occasions like sending New
Year’s and midyear gifts or to send equipment

sumer-to-consumer (C2C) delivery service, has beenahead or home when going golfing or skiing, but in

operating for 36 years since its launch in 1976. This

recent years the Internet’s widespread use at homelength of time, together with structural factors such as

has fueled growth in mail-order shopping, increasing

the prolonged domestic economic slump and popula-

the opportunities to use TA-Q-BIN for everyday

tion decline, has seen TA-Q-BIN viewed as a maturing

events like shopping. The service is now essential

business in recent years, and consequently, the“infrastructure” for day-to-day life.

Yamato Group’s growth has also been viewed as

Going forward, we will redefine the general

possibly slowing as growth potential declines for thispublic as “residents” and form partnerships between

major pillar of our earnings. I strongly believe, how-the Yamato Group and the government, local public

ever, that the market can still grow.

bodies and other companies to enter new businessdomains through establishment of lifetime lifestyle

Driving Sustained Growth Pivoting on

support platforms closely tied to local communities

Revival of TA-Q-BIN’s Growth by Managing

and lifestyles, while also utilizing the Kuroneko

a Portfolio of Six Main Businesses

Members service and other resources.

The Yamato Group converted to a pure holding company system in 2005.
The main reason I think it will be possible toAt the same time, for corporate customers wehave provided value in the form of accuracy andreliability in delivery services; specifically, sales

revive the growth of the TA-Q-BIN business is basi-

support for the retail industry and timely logistics forcally because I believe we can spur additional growth

the manufacturing industry. Moving forward, we willin physical distribution by fully utilizing management

provide solutions that help customers make supply

Annual Report 20127

chain innovations, including warehouse operations,inventory management, sales promotions and aftersales follow-up, as we steadily shift to value provided
by the Yamato Group.
We will offer comprehensive support for both
efficiency and dispersal of inventory management,
and timely, frequent deliveries in corporate activities,
which is normally a difficult combination to achieve.

Changes in the Social Structure Play to
the Yamato Group’s Strengths
Our strength as a logistics company is a nationwide
network that extends the “last mile” to end users. It

closely tied to local communities and lifestyles,

is my belief that our ability to leverage this strength

while also utilizing the Kuroneko Members ser vice

to become a partner for corporate logistics suppliers

and other resources, by forming partnerships

and provide a range of solutions expressly for end

between the Yamato Group and the government,

users, the general public, is a characteristic pos-

local public bodies and other companies.

sessed only by the Yamato Group.
The Great East Japan Earthquake of March 11,

The Yamato Group intends to help enrich society by providing corporate and residential custom-

2011 indirectly brought into relief not only socioeco-

ers solutions to restrictions and inconveniences

nomic changes that have long been recognized, likeinvolving location, time and cost.

the declining birthrate and aging population, regional

8

Haneda Chronogate

One example is Haneda Chronogate, which isdepopulation, widespread Internet use by regularcurrently under construction and will serve as ahouseholds, and the increase in women pursuing

strategic base for designing entirely new logistics

careers outside the home, but also many major

practices and partially solving various restrictions

changes taking place in the values and lifestyles ofand inconveniences across time and space.

the general public. It also reinforced the urgency

The Yamato Group has traditionally viewed Asiawith which companies must address these broad

and Japan as a single economic zone and has seensocietal changes.

the need for nodes within the zone through which

At the same time, it is also a fact that the

goods, money and information travel seamlessly.

Yamato Group’s network, which extends the “lastHaneda Chronogate is located next to Haneda Air-mile” to end users, has been reaffirmed as consti-

port, where international flights have resumed. Ittuting essential lifestyle infrastructure on par withalso has distribution facilities such as the Tokyo andelectricity and water utilities. The changes taking

Yokohama ports and container terminals nearby andplace I think dovetail per fectly with our long-term

enjoys good access to the Metropolitan Expressway.

plan of providing lifetime lifestyle support platforms

It will truly be a node in the Asian economic zone.

Yamato Holdings Co., LTD.

Development Status of Overseas TA-Q-BIN Business

Integration of Asian Operations
ShanghaiHong Kong

Malaysia

TaiwanSingapore

Business Launches
Shanghai:Started TA-Q-BIN operations in Asia in
January 2010, aiming for integrated
operations in the region

Business launched Jan. 2010

Singapore: Business launched Jan. 2010
Hong Kong: Launched Feb. 2011
Malaysia:

Launched Sep. 2011

TA-Q-BIN operations in Taiwan started in October 2000
through a tie-up with Uni-President Enterprises Corp.

Haneda Chronogate will have all Yamato Groupwe expect it to serve as a major trigger for our strat-

companies located there, with four main functions:egy to revive the growth of TA-Q-BIN by adding new

the Direct Transport function, which will handle prod-

value to the Delivery Business while generatingucts received from overseas and deliver them togrowth in our highly profitable e-Business, Financial

their destinations without delay like TA-Q-BIN, result-Business and other non-delivery businesses, in theiring in overwhelming reductions in lead times; therespective domains.

Global Cross-Docking function, which will sort prod-

I also think it has an important role to play in theucts received from overseas, improving inventory

context of us establishing DAN-TOTSU (unassailable)

turnover rates and minimizing inventory volume; thepositions in solution capability, delivery quality, andProduct/Distribution Processing function, which will

customer satisfaction in this capacity in Asia, as the

support customer operations such as product pro-leading provider of distribution and lifestyle support

cessing, kitting and maintenance, etc.; and the Multi-

solution services in Asia.

Transport function, which will provide the optimalmode of transport from among diverse methods of

Allocation of Cash Generated in thetransportation.

Domestic Delivery Business to Strategic

We anticipate that Haneda Chronogate will stimulate further growth in physical distribution. That is,

Investment for Further Future Growth
In terms of the overseas TA-Q-BIN business, we have

Annual Report 20129

sufficient awareness of capital cost levels that reflect
the expectations shareholders and investors hold forthe earnings of the Yamato Group.
Led by Yamato Holdings, the Group’s pure holding company, we will rigorously apply an investment
recover y approach at the business segment level
and achieve further growth.

Raising Satisfaction of Shareholders,Customers, Communities, Employees and
All Other Stakeholders
expanded business by providing know-how to Taiwan’s

The medium-to-long-term vision of our long-term man-

Uni-President Enterprises Corp. for 12 years sinceagement plan, DAN-TOTSU Management Plan 2019,2000. We will also accelerate our own Yamato Group

which covers through fiscal 2020, the Company’s

TA-Q-BIN business in Asia, where even more economic

100th anniversary, and our medium-term manage-

growth is expected in the future.

ment plan, DAN-TOTSU Three-Year Plan HOP, which

We started TA-Q-BIN operations in Shanghai andSingapore in January 2010, and Hong Kong inof establishing DAN-TOTSU (unassailable) positions

February 2011. In September 2011, we extended ourin solution capability, delivery quality and customer

reach by starting a business in Malaysia.

satisfaction as a leading provider of distribution

We plan to continue steadily expanding theand lifestyle support solution services in Asia. A

TA-Q-BIN business to other regions and, in the future,

major theme of the medium- and long-term plans is

we will build a global supply chain in the Asian zone.

further raising satisfaction levels for shareholders,

We hope to enrich societies across Asia by transplant-

customers, communities, employees and all othering the business model we have refined in Japan.

stakeholders.

At the same time, to stimulate further growth in

To raise shareholder value, we have declared ROE

physical distribution in Japan, we will make invest-

to be an important benchmark to keep in mind in orderments to further upgrade TA-Q-BIN and other services

to achieve both strengthened capital accumulation andand expand our business domain.

utilization of business assets. We plan to raise ROE to

Doing so will make it possible to expand our

8.5% in the year ending March 2014, the final year ofsame-day delivery area and provide innovative solu-

the medium-term management plan, and to overtions to corporate customers, which should spur

11.0% in the year ending March 2020, the final year offurther earnings growth.

the long-term management plan.

Capital investment in fiscal 2013 is projected to10ends fiscal 2014, puts forth the aforementioned goal

The Yamato Group consistently and continuallybe ¥92.0 billion, higher than a normal year, but thegenerates between ¥70.0 billion and ¥80.0 billion in

Yamato Group continues to conduct management withcash annually to maintain the agility and flexibility of

Yamato Holdings Co., LTD.

Yamato Group Concept Map Ahead of 100th Anniversary
Customer Satisfaction (CS)
Create DAN-TOTSU businesses
through high quality and CS
Enhancement of Asian network
Domestic parcel delivery market share: Over 50%
Non-delivery share of operating income: Over 50%
Overseas sales ratio: Over 20%

Business

Business groups
utilizing core competence

Business

Societal Satisfaction

Core competencies

Safety-Environment-CSR

IT

Become the company most loved andtrusted by society

LT

Business

Employee Satisfaction
Invigorating and fulfilling
workplace

FT“Last mile” network

BusinessAsia’s No. 1 solution provider in
distribution and lifestyle support

Provision of improved labor
environment

Business

Business

Shareholder Satisfaction
Raise corporate value and pay
stable high dividends
ROE: Over 11%

financial activities while sufficiently covering ordinary
expenditures.
We will continue working to increase our profitability by steadily executing our medium-term management plan, DAN-TOTSU Three-Year Plan HOP, and alsoraising capital efficiency by implementing flexible

For the fiscal year ended March 31, 2012 we paid
dividends of ¥22 per share, including an interim dividend of ¥11.
We ask our shareholders for your ongoing encouragement and support.
September 2012

capital policies, as and when needed, by taking advantage of our solid financial base. Our overall goal is tofurther increase our corporate value.

Makoto Kigawa
Representative Director,
President and Executive Officer

Annual Report 201211

Market Data

Growth in the Express Home Delivery Market

Growth of TA-Q-BIN

Trends in Parcel Delivery Volume

TA-Q-BIN is the Yamato Group’s flagship service offering.

This sur vey uses company-repor ted parcel deliver y

Since its launch in 1976, we have pursued a strategy ofvolume data compiled by Japan’s Ministr y of Land, Infra-

differentiation based on development of additional strategic

structure, Transpor t and Tourism.

offerings such as Cool TA-Q-BIN and TA-Q-BIN Collect, andIn the data, “parcels” denotes individual packages

improvement of delivery quality, including enhanced features

weighing less than 30 kg, irrespective of the type of deliv-

such as Time Period Delivery and Driver Direct services. As

er y (C2C, B2C or B2B).

a result of these efforts, the Yamato Group has outper-

However, lots in which multiple packages are sent
together and parcels that do not require a signature on

formed the growth in the express home delivery market as awhole, and steadily expanded our market share.

deliver y are not counted as “parcels” for the purposes ofthe sur vey.
(Millions of Parcels)

4,000

3,500

3,000

2,500

2,000

Timeline of New Product Development
Source: Japan Post Holdings Co., Ltd.
Japan Post Service Co., Ltd.

1,500

1986 TA-Q-BIN Collectlaunched

1988 Cool TA-Q-BIN
service launched

1,000

500
YamatoJapan Post
0
1975

12

Yamato Holdings Co., LTD.

1980

1985

1990

Currently, the Group is working not only to develop new

In addition to operations that have already begun instrategic offerings and improve ser vice quality, but toShanghai, Singapore and Hong Kong, in September 2011,

adapt to the needs of customers that have grown in

the Group launched a TA-Q-BIN operation in Malaysia.

sophistication on an ongoing basis. To this end, theMoving for ward, the Yamato Group will expand the

Yamato Group will strive to attain further growth in

TA-Q-BIN business in markets across Asia where rapid

TA-Q-BIN through the generation of new business and solu-

economic growth is expected to continue. By penetratingtion models in areas of the business in which growth canthese markets with high-quality door-to-door deliver y ser-be expected.

vices and a business model honed in Japan, the Yamato

Moreover, the Yamato Group is developing its overseas
TA-Q-BIN business across Asia.

Group aims to contribute to the prosperity of societies
across Asia, and to evolve as the leading provider of distribution and lifestyle support ser vices in the region.

1999
In fiscal 1999*1, certain firms switched their existing
parcels to express home delivery, and the data forthe year reflects this increase. Excluding this extraordinary factor, year-on-year growth was 5.9%.

2007
As a result of the privatization of the
postal service in October 2007, Japan
Post Service Co., Ltd. now falls under thejurisdiction of the Motor-Truck Transport
Business Law, and is included in thesurvey starting from fiscal 2007*2.

* 1 The period April 1999 through March 2000 in this graph only
* 2 The period April 2007 through March 2008 in this graph only

Trends in Delivery Volume
By Truck

Total Number of Deliveries
Note:	“Total Number of Deliveries” includes express home delivery services involving
transport by truck, air and other methods.
Source:	Statistical survey by the Ministry of Land, Infrastructure, Transport and Tourism.

Enhancingsender-side customer service

Enhancingdelivery-side customer service

Enhancing
services by proposing solutions

2007 Kuroneko Members
service launched2009 Five Solution Models(Today Shopping Service,
Global Direct, etc.)

1998 Start of Time Period Delivery

1996 Start of year-round operations
2010 TA-Q-BIN services
started in Shanghai
and Singapore
2011 TA-Q-BIN services
started in Hong Kongand Malaysia

2002 Start of Driver Direct service

1995

2000

2005

2010
Annual Report 2012

2012

13

At a Glance

Operating Revenues (Millions of Yen)

Delivery

1,000,000
800,000
600,000
400,000
200,000
0

BIZ-Logistics

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

100,000
80,00060,00040,00020,0000HomeConvenience

60,00040,00020,0000

Share of Net Sales

e-Business

40,00030,00020,00010,000

0

Financial

60,00040,000n Deliver y. . . . . . . . . . . . . 80.5%
n BIZ-Logistics. . . . . . . . . . . 6.5%

20,000n Home Convenience. . . . . . 3.8%

0n e-Business. . . . . . . . . . . . 2.8%
n Financial . . . . . . . . . . . . . 4.3%

Truck
Maintenancen Truck Maintenance . . . . . . 1.7%

20,00015,00010,0005,000

n Other. . . . . . . . . . . . . . . . 0.4%

0

Other

5,000
4,000
3,000
2,000
1,000
0

14

Yamato Holdings Co., LTD.

Operating Income (Loss) (Millions of Yen)
40,000Business Description
The Deliver y Business provides small parcel deliver y ser vices for the general publicand corporations.
Guided by its basic corporate philosophy of “Total Reliability,” the business provides
mainly TA-Q-BIN and Kuroneko Mail services to improve convenience in customers’ lives.

30,00020,00010,000

0

2010

2011

2012

4,000

The BIZ-Logistics Business is a corporate distribution operation involved in services suchas logistics and medical products distribution. The business provides customers with aninnovative logistics system by combining management resources such as the TA-Q-BIN
network with international transport and warehouse management functions.

3,000

2,000

1,000

0

2010

2011

2012

400

The Home Convenience Business is a community-based lifestyle support operation thatprovides services such as the pickup, delivery and assembly and installation of homefurnishings and appliances. The business provides lifestyle-related services utilizing the
Yamato Group’s nationwide network, with the aim of supporting the convenient andcomfortable lifestyles of customers.

0

(400)

(800)

2010

2011

2012

8,000

The e-Business comprises operations in contract data processing and information systems
development.
The e-Business is actively engaged in proposing solutions that integrate data, distribution and settlement functions, to raise business process efficiency and solve potential
business problems customers face.

6,000

4,000

2,000

0

2010

2011

2012

12,000The Financial Business provides settlement services and financial products for corporations and the general public.
From payment collection on mail-order product deliveries to B2B logistics settlement,
the Financial Business is striving to respond to every means of settlement to meet theneeds of customers.

9,000

6,000

3,000

0

2010

2011

2012

3,000

The Truck Maintenance Business performs the maintenance and upkeep of trucks andother vehicles for transportation companies under contract.
	Utilizing the Yamato Group’s technologies for reliably maintaining and repairing trucks,

2,000

1,000

0

2010

2011

2012

30,000

the Truck Maintenance Business provides customers in the trucking and bus transportation sector with three forms of value: 1) convenient vehicle maintenance, 2) compliancewith statutory vehicle inspections, and 3) reduced maintenance and repair costs.

The Yamato Group’s Other businesses comprise the B2B logistics business involving the
JITBOX Charter service, personnel placement services, and shared services.

20,00010,000

0

2010

2011

2012

* Operating income in Other includes dividends from Group companies.

Annual Report 201215

Overview of Operations

Delivery

Masaki Yamauchi
Representative Director,
President and Executive Officer of Yamato Transport Co., Ltd.

Guided by its basic corporate philosophy of “Total Reliability,” the Delivery Business utilizes the business resources of
the Group in the Japanese and overseas markets to pursue
business development that improves convenience in customers’ lives. In the Japanese market, the Delivery Businessaims to establish an overwhelming competitive advantage
over rivals through various measures. These include evolving
our products and services, reinforcing our ability to propose
commercial distribution solutions, and addressing local
revitalization needs. In overseas markets, the Delivery
Business aims to expand its TA-Q-BIN business in Asia anddevelop and cultivate services that streamline domestic andinternational transportation services.

Review of Fiscal 2012
The aftermath of the Great East Japan Earthquake was aconcern for the Delivery Business at the start of the term.
The economy began to gradually regain momentum, however, on the strength of full-scale recovery and restoration
activities. Fiscal 2012 saw the launch of DAN-TOTSU ThreeYear Plan HOP, a medium-term management plan. Under
this initiative, we reinforced marketing to the small lot commercial distribution sector, which is our core revenue base,and solution sales that leverage Group strengths.
TA-Q-BIN transaction volumes thus reached a record
high, reflecting the strengths of same-day delivery and otherstrategically differentiated products using our network.
These capabilities helped us to win new customers, mainlyin the mail-order market, and increase deliveries from existing customers.
Handling volume for Kuroneko Mail declined owing to16

Yamato Holdings Co., LTD.

stricter policies on parcel acceptance in keeping with ourcompliance commitment.
Given the difficulty of projecting work volume, we drewon part-timers in what we call our “field cast” to cover work
volume and drew on team-based approaches to concurrently
deliver parcels during times when customers were most
likely to be home. Such delivery quality and productivity
improvements enabled the Delivery Business to increase
both revenue and profit. Operating revenues rose 1.9%, to¥1,014,564 million, and operating income was up 1.0%, to¥40,965 million.
In Japan, we continued to boost sales through solutions,with a view to addressing the diversifying needs of customers with high-quality services, mainly for corporate customers. These include Today Shopping Service, Net Super
Support services, and other solutions that fully leverage thecoordination within the Yamato Group and its functions. For
individual customers, we extended the lineup in the
Kuroneko Members service, whose offerings to date haveincluded enabling recipients to designate parcel reception
or receive parcels at stores offering TA-Q-BIN services. New
capabilities during the year included providing an electronicmoney function for Kuroneko Members cards. People canuse their cards to shop at convenience stores and other
outlets and pay delivery fees.
In overseas markets, the Asian economic zone is
becoming borderless in terms of goods, money, and information. We help customers to procure raw materials locally,
produce products, and import those goods to Japan throughour Global Direct service. In September 2011, we started
TA-Q-BIN services in Malaysia, extending an Asian reachthat already covers Shanghai, Singapore, and Hong Kong.
Our more sophisticated lines, such as Cool TA-Q-BIN,
TA-Q-BIN Collect and Time Period Delivery, have gradually
gained acceptance among developed countries and regions
in overseas markets, a trend reflected by a steady increasein delivery volumes.

Strategies for Fiscal 2013
The fiscal year ending March 31, 2013 marks the second
year of our three-year medium-term management plan DANTOTSU Three-Year Plan HOP. This fiscal year will see the Delivery Business strive to remain one step ahead of our rivals inmeeting customer needs. This in turn will, we believe, lead toincreased market share, improved quality and stronger costcompetitiveness. Our aim is to establish a position, by the100th anniversary of our founding in fiscal 2020, as themost appreciated and best-known company in all communities. We will realize further growth by pursuing two major
pivotal business policies. In Japan, we will further increase
the quality of our operations to establish an overwhelming
competitive advantage. Overseas, we will accelerate theexpansion of our TA-Q-BIN business in the Asia region.

Japanese Market: Achieving an enormous leap in quality
through the adoption of a “regional- and lifestyle-oriented
approach” and the provision of logistics solutions
One initiative for revitalizing the growth potential of our
TA-Q-BIN services is the construction of lifetime lifestylesupport platforms based on members of Kuroneko
Members. We are also creating a new business model moreclosely tied to local communities by partnering with national
and local governments and other companies. We havealready collaborated with social welfare councils and shops
in launching a shopping delivery service for local communities. Numerous projects, including some at proposal stages,
are moving forward nationwide. One is for a service to confirm the health and well-being of recipients. Others include
services that collaborate with government offices to promote local industry, employment, and community revitalization. We aim to become pivotal to community infrastructuresby expanding these projects.
At the same time, we will provide solutions that help corporate customers overhaul their supply chains. We will help
these customers address increasingly complex requirements
in terms of reforming warehouse management, inventory
management, sales promotion and aftersales follow-up. We
will draw on Group strengths to develop cutting-edge, cloudbased services that combine the TA-Q-BIN network with logistics technology (LT), information technology (IT) and financial
settlement technology (FT) to provide flexible distribution
solutions that best meet customers’ needs. Specifically, we
will cultivate new businesses supporting customer business
operations. For example, we will propose diverse problemsolving services with Group products through the Yamato
Business Members network. We will offer recovery logistics,
in which we comprehensively manage such complex tasks
as collecting goods for repair or returned mail-order goods.

We also look to provide new services that harness theFree Rack Auto Pick System (FRAPS), which supports busy
customers in making shipments.
Overseas Market: Accelerating and strengthening development of our TA-Q-BIN services in Asia
We will continue surveying the overseas potential of our
TA-Q-BIN business and develop that business in Asia to
steadily expand the region in which we operate our TA-Q-BIN
business. At the same time as expanding our distribution
infrastructure across our Asia network, we will introduce thesame range of high-quality, value-added products and services
currently available in Japan in order to better support thosecompanies setting up overseas operations in the region.
In fiscal 2013, we will build various businesses by integrating our Asian TA-Q-BIN network and our international
network, the latter drawing extensively on our logistics hub
capabilities in Okinawa, including for late-night flights. For
example, we will create international TA-Q-BIN services thatenable people to send parcels from Japan to other Asian
countries. We also aim to provide a next-day international
small parcel delivery service for companies and build an
Asian door-to-door integrated delivery platform. We alsoseek to provide value-added services that would be impossible with existing logistics centers, taking advantage ofHaneda Chronogate, which is scheduled for completion in
fall 2012, as a new strategic base.
As we proceed with these business activities, our strategies to improve convenience for our customers will be to
optimize pickup and delivery team structures based ondelivery schedules to provide better service at a time moreconvenient to the customer. In addition, we will look toembed the TA-Q-BIN network further in local communities
while improving productivity and increasing market share.

TA-Q-BIN Services
Acceleration of Multi-Stores (3,900 Stores)

Customers whorequest delivery(Corporate or Individual)(FY2012)• High-Density Network with Our Catchphrase “No Matter What Time
Serve the Customer, No Matter How Many Times Serve the Customer”• Time-Differentiated High Quality Service• Delivery System with In-House Employees• Delivery not Dependent on Trucks
Actions for Environment and Safety

Customers who expect toreceive packages(Corporate or Individual)

Express Agencies:
250,000*
Direct Retail Stores: 3,900*
Sales Drivers:
54,000** Approximate figures

CenterCenter Small Group Center
Small Group

Small GroupBase(76 centers
nationwide)

Arterial
Transportation(Outsourced)

CenterBase

CenterSmall Group

Small Group

CenterSmall Group

Greater Sophistication of ICT Infrastructure

Mobile Terminal• Real-Time Parcel Inquiry System via Mobile Terminals• Delivery Schedule and Missed Delivery E-mail System• Settlement System Including for Payment on Delivery

Mobile Terminal

IT and Settlement Data

Annual Report 201217

One domestic initiative during the year under review was

BIZ-Logistics

to jointly open the Sanin Ryutsu Trinity Center with the cityof Sakaiminato in Tottori Prefecture. The center is a platformbase adding the Yamato Group’s information, logistics, andfinancial technologies to the port functions of the city. The
center supports the global development of small andmedium-sized suppliers based in Japan. The services thecenter provides have not only helped reduce the costs to
those suppliers, but also made their procurement and sales
activities smoother, and contributed to job creation and thedevelopment of industry in the region. Overseas, we started

Hitoshi Kanamori
Representative Director,
President and Executive Officer of Yamato Logistics Co., Ltd.

a same-day office supplies delivery service in Shanghai,
China, for ASKUL Corporation. This service is a local adaptation of the logistics functions and expertise of the YamatoGroup’s Today Shopping Service in Japan. In upgrading theservice to match the needs of Shanghai, we cut the lead

The BIZ-Logistics Business aims to amaze and satisfy its

time from order to delivery from more than a day to justcustomers and the consumers of their products and services

half a day. This has helped the client, ASKUL Corporation,

by exceeding all customers’ expectations. The businessto expand sales, as well as contributed to the greater

realizes this goal by developing innovative logistics solution

convenience of local consumers.

models from the perspectives of users, combining logistics

Underpinning the launches of such services was an

and international transportation capabilities with the man-evolution in our services as our perspectives shifted fromagement resources of the Yamato Group.

existing efforts to enhance offerings to merchants (sellers)
to doing better for consumers (buyers). Another factor has

Review of Fiscal 2012

been our spirit of coexistence and co-prosperity with cus-

In fiscal 2012, operating revenues increased 0.6% from a

tomers and local societies.

year earlier to ¥82,479 million. This rise reflected expanded

The BIZ-Logistics Business will constantly drive logistics

usage of services for the mail-order industry and trade-solutions advances by customer and region to steadily

related services, as well as the strong performance of a

expand its domain.

new medical equipment-related service. Owing to higher

18

costs associated with the development of a new business

Strategies in Fiscal 2013

for medical equipment-related services and expansion of

To reach its targets under the DAN-TOTSU Management Plan

the Global Procurement Support Service, operating income

2019, the BIZ-Logistics Business aims to make logistics

declined ¥1 million, to ¥3,663 million.

borderless and achieve logistics innovations.

Yamato Holdings Co., LTD.

In developing our business overseas, we will launch B2B

between anywhere in Japan and any country and city arounddelivery routes and transportation operations within Asia to

the world by leveraging that facility’s advantages as a land,

offer one-stop logistics services matching specific regionalsea, and air hub for Japan and overseas, linking all of theneeds. We have added multiple new functions exploiting ourfunctions of the Yamato Group.

information, logistics and financial technologies in the

The BIZ-Logistics Business will help further enrich society

Global Direct service, including our e-mail notification ser-through borderless logistics and innovations by organicallyvice, international refrigerated transportation, and interna-connecting the management resources of the Yamato Group.

tional settlements, to further amaze and satisfy customers
and their consumers.
In domestic business development, we will materialize a
new concept of zero inventory using the FRAPS (Free Rack
Auto Pick System). This approach differs completely fromthe conventional concept of holding and shipping customer
parcels. We created a new service that makes it possible todeliver parcels through the fastest routes in the TA-Q-BIN
network regardless of how many parcels there are andwhere they are. At Haneda Chronogate, which is scheduled
for completion in fall next year, we will further shorten times

FRAPS

FRAPS
The day’s inventory
shipment
Box pallet on rollers

FRAPS Center

Manufacturer
Shipping to nearest
FRAPS center
1 Products packed in box pallet on rollers

2 Products picked from box pallet onrollers as instructed by digital
picking system

Retail Store
Delivery by
TA-Q-BIN

3 Products delivered in
4 hours at the earliest

Annual Report 201219

started offering new services, primarily by building a plat-

Home Convenience

form that adds repair, maintenance and after-care services
to the foregoing installation and assembly services.
During the year under review, we devoted our resources
to restoration activities by delivering and installing electricalappliances at temporary housing in areas affected by theGreat East Japan Earthquake. At the same time, new services helped boost revenues. Such services included acomprehensive electrical appliance returns service for small
and medium-sized manufacturers using the above platform,
and a service for housing equipment manufacturers that

Atsushi Ichino
Representative Director,
President and Executive Officer of Yamato Home Convenience Co., Ltd.

transports unpacked individual moving crates.
In the moving business, we offered a range of lifestylerelated services aimed at removing the hassle associatedwith moving house, such as sales of recycled items andrental services, as well as leveraging the special strengths

The Home Convenience Business is responsible for offeringof our network to enable the transport of individual moving

life environment services that take a step inside the life-

crates.

styles of customers. The business is developing and provid-

During the year under review, the moving business did

ing comprehensive lifestyle support services that enrich andmuch in earthquake-afflicted areas by selling furniture andmake customers’ lives more convenient not only in theelectrical appliances through mobile recycled-goods shops.

home, but also in the office.

The business capitalized on needs identified in afflicted
areas to launch a new service targeting depopulated areas

Review of Fiscal 2012

in Japan. We catered for post-quake moving demand and

The period under review marked the first year of both ourprovided new services to support people in relocatedlong-term management plan DAN-TOTSU Management Plan

households, such as room redecoration and home cleaning.

2019, and our medium-term management plan DAN-TOTSU

The moving business contributed to revenue growth byThree-Year Plan HOP. Our strategy focused on developing

improving convenience for customers with services for all

services that add a new dimension to customers’ home

life stages.

convenience experience. Another important aspect was20

As a result of these factors, operating revenues for theproviding support to those in need in areas affected by themoving business were solid, exceeding the level for theGreat East Japan Earthquake.

previous term. At the same time, the number of electrical

In our delivery-with-installation business, a service thatappliance deliveries and installations dropped more thannot only delivers but also installs and assembles large-sized

expected, reflecting the completion of a government eco-furniture and appliances, we sought to meet the demands

point program for energy-saving appliances and the comple-of customers wishing to use delivered furniture and equip-

tion of a switch to digital terrestrial television broadcasting.

ment immediately upon delivery, based on the strengths ofOperating revenues for the Home Convenience Businessour nationwide network and the service itself. We also

thus declined 2.6%, to ¥47,715 million.

Yamato Holdings Co., LTD.

Similarly, we posted an operating loss of ¥44 million.

by capturing synergies with lifestyle support services.

However, thanks to productivity increases, cost cuts through

The Business Convenience Business cultivates new

the integration of operations, and fixed cost reductions, thismarkets for everyday services with product lines that lever-

was an improvement of ¥574 million on the operating loss

age existing networks. We will expand earnings and drive

suffered last year.

new growth in existing businesses by making existing services more responsive to user needs while introducing new

Strategies in Fiscal 2013services.

In fiscal 2013, the second year of the medium-term man-

The products and services we offer will maximize theagement plan DAN-TOTSU Three-Year Plan HOP, we will culti-Group’s nationwide network, a major management resource

vate new markets by deploying new products and services

in and of itself, and will reflect the characteristics of thefor the lifetime lifestyle support and corporate activity sup-local community.

port areas. At the same time, we will set course for a

We have established our own technological capability

growth path by refining existing products and services. We

qualification standards to be used in the development ofwill work to increase revenues and earnings by providing

our technicians and drivers, who are usually the last tologistics support for business operations and reforming ourinteract with customers at the end of the service provision

cost structure.

process. Based on those standards, we will continue our

On October 1, 2011, during the first year of our three-development and training programs with the goal of upgrad-year plan, Yamato Home Convenience Co., Ltd. imple-

ing and expanding technician and driver skills. At the samemented organizational changes. It restructured its entire

time, we will promote further quality enhancements by pro-business into the Home Convenience Business to offer

viding all employees with additional training on customer

lifelong support for customers by making home lifestyles

satisfaction.

more convenient, and the Business Convenience Business,
which aims to enhance support for corporate activities.

We are committed to deploying unique new services byidentifying social changes and continuously enhancing con-

The Home Convenience Business materializes lifelong

venience for our customers. We will thereby improve thelifestyle support for customers by developing convenient prod-

Yamato Group’s corporate value while managing our busi-

ucts that enrich lifestyles in segmented markets. This busi-

ness to pursue growth.

ness will rekindle the growth of existing products and services

Household TA-Q-BIN Service
YamatoManufacturer

Packaging/Shipment

Installation/Set-up

Consumer

Annual Report 201221

services, the e-Business provides solutions for potential

e-Businessbusiness problems and proactively proposes solutions that
result in sales growth and cost reductions for customers.

Review of Fiscal 2012
The e-Business actively proposed solutions that integratedata, distribution and settlement functions, to raise business process efficiency and solve potential businessproblems of customers. Furthermore, we developed andoperated systems in step with business development
across the Yamato Group.
Kenji Minaki

In collaboration with the Financial Business in e-money

Representative Director,
President and Executive Officer of Yamato System Development Co., Ltd.

services, we have been promoting installation and operation of a multi e-money settlement terminal that allows
settlement by multiple brands of e-money. During the year

The e-Business is involved in a range of information ser-under review, revenues expanded on the strength ofvices for corporations, including Application Service Provider

increased installations of terminals by restaurants and(ASP) services and information system development.

other customers.

Using Information and Communication Technology (ICT),In our e-Logistics Solution Business, we offer a service

the e-Business works in partnership with customers in pro-that visualizes delivery flows and the whereabouts of pack-moting efficient business processes. Based on theseages by applying the tracking know-how of our TA-Q-BIN

e-Logistics Solution
Yamato Group
Business Partner

Individual Product Management Enables Faster, More Accurate Response

Business ­Partner’s
Customers

Yamato Group Operations

Production Base

Customer

Information and Tracking Management
Storage, Transport and Delivery

Distribution Base

Flow of Goods

Sales BaseUsing Tracing to Achieve Uniform Information Management

22

Yamato Holdings Co., LTD.

Flow of Information

business for customers requiring individual goods manage-

As a result of expansion in services to visualize delivery

ment, such as telecommunications equipment and cable

flows, services to manage sales promotion goods for cus-

television businesses. In the year under review, our busi-

tomers, and contributions from the Net Super Support busi-

ness grew on the back of expanded new customer usage

ness, operating revenues increased 8.2% year on year, toand increased product management volume among existing¥35,504 million. As a result of upfront forward investments

customers.

in e-money services, operating income dropped 0.1%, toIn e-On Demand Solutions, business expanded in the¥6,703 million.

fiscal year under review thanks to the development of services, particularly for the pharmaceutical industr y, that

Strategies in Fiscal 2013

support improved sales efficiency and inventory reductions

Our first strategy is to strengthen the competitiveness ofthrough the management, on-demand printing, and just-in-

our products. Besides refining existing ser vices as atime delivery of customers’ sales promotion materials.

matter of course, we will create more ser vices and businesses by combining the management resources of the

Our Web-Based Mail Order Solution business took steps
to develop the “net supermarket” business, in which wee-Business and the rest of the Yamato Group. We will also

expect demand to expand. The business targeted retailcollaborate with the services of other companies to generatebusiness customers, such as supermarkets and department

unique solutions.

stores, in expanding its Net Super Support service, a com-

Our second strategy is to reinforce our sales capabili-prehensive service offering Web system creation, delivery ofties. We will employ the networks of the e-Business and theitems, and collection of payments. Taking advantage of therest of the Yamato Group as part of efforts to enhance ourmultifunctionality of the Yamato Group, this service has

solutions capabilities by collaborating with influential exter-

gained a strong reputation for its overall power as a service

nal partners in the marketplace. We will draw on our solid,that deals with the underlying social trends of an aging

wide-ranging sales structure to cultivate customer needs

society and the depopulation of rural areas. Consequently,

and deliver solutions.
We will strive for superior ability to use the combined

business is expanding firmly.

power of the Group in our business, continuing to offer new

Overseas, the e-Business progressed in line with the
Yamato Group’s Asian developments using ICT. Our

solutions that contribute to improved efficiency in the busi-

e-Business additionally cultivated its own operations in Taiwan.

ness processes of our customers. Our goal is to help tobuild an enriched society as a solutions provider.

Net Super Support Service
Customer places order

End customer
Able to accept settlement
using e-money

Order(NekoPit/Internet)

Same-day delivery• In-store selection• Collection by sales driver

Base

CenterAnnual Report 201223

launched a TA-Q-BIN Collect service allowing recipients to

Financial

pay by e-money at the time of delivery. Initially, the service
was limited to settlements using retail or independent
brands such as nanaco, Edy and WAON. However, from May
2011, the terminals used by our sales drivers were adapted
to accept payments from transit-based electronic prepaid
cards such as SUICA, ICOCA and PASMO. As a result, ourcustomers are now able to use 99% of all e-money types
currently available in Japan. In the home delivery industry,
this is the only service of its kind offered exclusively by the
Yamato Group.

Toshizo Kurisu
Representative Director,
President and Executive Officer of Yamato Financial Co., Ltd.

On top of that, we responded to an increasingly diverse
range of popular settlement methods, for example, thelaunch of smartphone- and tablet-based settlements inJanuary 2012.
Overseas, we made TA-Q-BIN Collect available as a settlement solution in Shanghai and Singapore from January

Review of Fiscal 20122010, in Hong Kong from February 2011, and in Malaysia

The Financial Business aims to become a partner thatfrom September 2011.

provides convenience for consumers and helps enterprises

As a result of growth in the number of TA-Q-BIN Collectoverhaul their logistics systems by providing settlement andtransactions through expansion in e-money settlements,

other financial solutions in Japan and abroad. We are deter-

segment operating revenues increased 3.3% to ¥54,115

mined to offer diverse settlement methods to fulfill cus-million. Operating income was unchanged, at ¥9,938

tomer requirements, such as collecting payments upon

million, reflecting higher operating costs for e-money-

delivery on behalf of mail-order companies and handling

related ser vices.

settlements between companies.
We continue to pursue greater convenience in methods

24

Strategies in Fiscal 2013of payment, actively promoting electronic money (e-money)

The Financial Business will continue to work on creating

payments in addition to payments on delivery by cash,

convenient, user-friendly services to suit a range of settle-

credit or debit card. In regard to the volume of transactions

ment scenarios for all corporate customers and end users

settled using e-money in the market, e-money transaction

in regional areas.

volume has grown in importance in recent years to the point

For our corporate customers in the business-to-that it is now an integral part of daily life in Japan. Transac-

consumer (B2C) mail-order market, we will further expand

tions settled using e-money surpassed roughly ¥1.75 trillion

and promote usage of TA-Q-BIN Collect, a single terminal

in 2010.

e-money settlement setup that is the only service of its kindIn response to this trend, in June 2010 we introduced ain the home delivery industry. In addition, we will propose

single terminal able to process settlements using a variety

solutions that leverage Group resources through our Todayof e-money brands, for the first time in Japan. We also

Shopping Service to attain the number one market share in

Yamato Holdings Co., LTD.

home delivery settlements for the mail-The Growing Mail-Order Sales Market and TA-Q-BIN Collectorder market.

(%)

At the same time, we will create more

10.0
9.0

lifestyle support platforms that provide

8.4
8.0

greater convenience by combining them

6.8

6.7
6.2

with delivery networks to eliminate incon-

6.0
6.0

venience and dissatisfaction with regular

5.4

4.1

4.0

payments.
In the business-to-business (B2B)

4.1

3.2

2010

2011

2.0

market, we will combine the Kuroneko
Anshin Kessai Service and the Yamato

0Group’s logistics technology to offer anlogistics reform solution that handles one-

2008

2009

YoY growth in mail-order sales  

n

2012

YoY growth in TA-Q-BIN Collect parcel volume

Source: The Japan Direct Marketing Association

stop delivery and procurement services forclient companies. We will help client com-

cash-on-delivery settlement service for handling the importpanies expand their businesses by providing optimized ser-and export of goods between companies in conjunction withvices that address financial issues associated with

the Global Procurement Support Service, a service set up

logistics, contributing to better business management forto address the international procurement needs of mid-companies buying from and selling to each other.

sized component manufacturers.

To improve convenience for overseas mail-order users,

We aspire to become a partner that materializes conve-

we started providing cash-on-delivery services for mail-ordernience for consumers and logistics reforms for client com-businesses in the United States and Europe. Moreover, we

panies by providing settlement and other financial solutions

have embarked on an initiative that is centered on ain Japan and overseas.

Cash-on-Delivery Service

Mail-Order Company

1 Purchase Agreement

Purchaser

3 Delivery

2 Product Dispatched

4 Money Collection

Flow of Goods

6 Funds Transfer

Yamato Group
Product Purchase
Price

Hand-Over of ProductConditional upon Payment
Improved Cash Flow to
Mail-Order Company

Flow of Money
5 Temporary Holding of Funds

Delivery BusinessTransport Fee
Financial BusinessCollection Fee

Annual Report 201225

Truck Maintenancecustomers to get the most out of their facilities, plants andlogistics equipment, we are aiming for total vehicle management services that contribute to the revitalization of thebusinesses of customers.

Review of Fiscal 2012

Keishiro Sasaki
Representative Director,
President and Executive Officer of Yamato Autoworks Co., Ltd.

The Truck Maintenance Business operates vehicle servicing
plants for logistics and distribution companies. Over theyears, the business has expanded the industry’s first maintenance service into a 24-hours-a-day, 365-days-a-year service that enables customers to service their vehicles
without stopping operations, schedule automobile safety
inspections and have routine check-ups.
Our vision is to transform this business from being theonly one customers choose to the number one for truck
maintenance in Japan. “Transform inconvenience into convenience from the customer’s standpoint” is the corporate
DNA of the Yamato Group. Based on this perspective, thebusiness offers services, chiefly for logistics and distribution companies, that go beyond vehicle maintenance toprovide a one-stop solution covering body and tire maintenance, as well as fuel supplies.
In addition, in providing insurance consultations as apartner that helps customers manage risk associated with
their operations, and management solutions that allow

We posted increases in both revenues and profit in the year
under review. Our operating revenues were ¥21,188 million,
up 7.6% year on year. Operating income increased 17.8%,
to ¥2,514 million. During the term, we opened two more
Superworks vehicle maintenance plants in the Kanto region,
specifically in Gunma and Saitama prefectures. Such facilities represent a new paradigm in environmentally friendly
maintenance. New eco-friendly features included a solar
power system and energy-efficient LED lighting, complementing high operating efficiency. As a result, 20 of our 72
vehicle maintenance plants are Superworks, reinforcing our
network. We drew on the strength of our network to actively
promote Off-Time Vehicle Inspection, which allows customers to schedule automobile safety inspections during a time
more convenient for them, and the 12-Month Fixed-Price
Maintenance Package, which evens out monthly vehicle
maintenance expenses. The number of automobile safety
inspections for companies outside the Yamato Group wasthus 38,000 vehicles, up 8.4% from a year earlier. The
Great East Japan Earthquake of March 11, 2011 damaged
three of our facilities in the disaster-stricken regions. We
made intensive efforts to maintain the logistics infrastructure by swiftly restoring facilities.

Strategies in Fiscal 2013
In fiscal 2013, we aim to accelerate initiatives to expand
our network of Superworks vehicle maintenance plants as a
new paradigm of environmentally friendly facilities and tocultivate a comprehensive consulting business focusing on
vehicle management.

New Superworks vehicle maintenance plants in search of greater gains in operating efficiency and environmental performanceSuperworks Gunma vehicle maintenance plant: completed in October
2011

26

Yamato Holdings Co., LTD.

Superworks Saitama vehicle maintenance plant: to be completed in
January 2012

Solar power generation panels

Operations inside a plantBy further reinforcing our network, we will create a businessthat more closely relates to the customers of each locality.
Moreover, we plan to broaden the focus of our activities
beyond just maintenance to include a more managementoriented approach in the services we provide. We will further promote the existing 12-Month Fixed-Price MaintenancePackage, and the Tire Management Service, while working
to introduce new services, namely the Body Maintenance
Service, and a safety education program for transportationcompanies. Through these efforts, we intend to provide newmechanisms that will allow our customers to more accurately budget for and control vehicle maintenance costs. In
addition, we will provide customers with expertise on safeand reliable operations.

Expanding our Superworks network
20 locations out of 72 in total (as of March 31, 2012),
to be increased to 22
Hokkaido

Yamagata

Miyagi
Fukushima

Hyogo

Fukuoka

Osaka
Kagawa

Aichi

Gunma
Saitama Ibaraki
Tokyo
Chiba

Kanagawa
Mie Shizuoka

We will step up efforts to promote our risk consulting
business in our capacity as an insurance agent and pushahead with our facilities and equipment maintenance management business to materialize one-stop services.

Basic Concept—The “Three Cs” and “One C”
The Truck Maintenance Business provides one-stop services based on observing the three “Cs” underpinning management support for logistics and distribution companies.
The first “C” is Compliance, which is the foundation ofmanagement. Our Repairworks mobile plants have contributed to improving the completion rate for statutory vehicle
inspections of our customers.
Next, we have Convenience, where we pursue everhigher levels of convenience for our customers. Based on
this concept, we aim to establish a framework that enables
operations 24 hours a day, 365 days a year, in order tocarry out vehicle inspections when the vehicles are not in
operation.
Our third “C” stands for Cost Reduction based on helping to improve utilization rates for commercial vehicles whileleveraging procurement capabilities. By promoting measures
to constrain the need for spare vehicles and increasing thecompletion rate for statutory vehicle inspections, we havemade it possible to implement preventive maintenance,
which helps limit occurrences of unexpected costs. We will
harness our nationwide network to procure optimal partsand fuels so as to provide customers with high-quality products and services at low cost.
The last “C” stands for Clean. In keeping with the times,
we have addressed environmental issues by deploying solar
power systems, energy-efficient LED lighting, and otherfacilities at Superworks. Also, we are recommending rebuilt
and reused parts to support the environmental efforts oflogistics and distribution companies.

Okinawa

Vehicle Maintenance
Vehicle safety

Tire management

Risk Consulting

3C+1C

Fuel services

Compliance, Convenience,
Cost Reduction+
Clean

Non-life insurance
agencyLife insurance
agencyLogistics Maintenance
Maintenance oflogistics equipment

Sale of logistics
equipment

Annual Report 201227

The JITBOX Charter service is a service that provides trans-

Other

portation by transport box. The service takes advantage of
its Group network consisting of multiple companies andprovides value to customers through delivery timed to suitthe customer’s needs and frequent, right-volume delivery. In
the fiscal year ended March 31, 2012, there were increases
in event-related transportation orders and collection
requests related to the replacement of arcade gamemachines, and the handling volume of the Yamato Groupexceeded that of the previous fiscal year.
Operating income excluding dividends Yamato Holdings

JITBOX CharterCo., Ltd. received from Group companies increased 50.9%
from the previous fiscal year to ¥1,157 million.

Operating Income

Track Record of JITBOX Charter(Millions of Yen)

(Units)

25,00020,000500,000

19,863400,000

18,63415,000390,233
368,409380,270

300,000
11,877200,000

2,000

1,872

1,500

1,157

1,000

100,000

767

500
0

2010

2011

2012

n Including Yamato Holdings n Excluding Yamato Holdings

28

Yamato Holdings Co., LTD.

0

2010

2011

2012

Organization
As of March 31, 2012

Yamato Transport Co., Ltd.
Okinawa Yamato Transport Co., Ltd.
Yamato Global Express Co., Ltd.
Delivery

Express Network Co., Ltd.
Yamato Transport (HK) Ltd.
Yamato Transport (S) Pte. Ltd.
Yamato (China) Transport Co., Ltd.
Yamato Dialog & Media Co., Ltd.
Shanghai Bus Chemical Logistics Co., 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 Institute Co., Ltd.
Konan Industry Co., Ltd.
Yamato Transport U.S.A., Inc.

BIZ-Logistics

Yamato Transport Europe B.V.
Yamato International Logistics (Hong Kong) Ltd.
Taiwan Yamato International Logistics Inc.
Yamato Asia Pte. Ltd.
Yamato International Logistics Co., Ltd.
Yamato Transport (M) Sdn. Bhd.
Yamato Logistics India Pvt. Ltd.
Shanghai Wai Gao Qiao Bonded Logistics Zone Yamato Warehouse Co., Ltd.

Yamato Holdings Co., Ltd.
Home Convenience

Yamato Home Convenience Co., Ltd.
Yamato System Development Co., Ltd.

e-BusinessYamato Career Service Co., Ltd.
Yamato Contact Service Co., Ltd.
Yamato Financial Co., Ltd.
Fine Credit Co., Ltd.*

Financial

Yamato Lease Co., Ltd.
Yamato Payment Service (HK) Ltd.
Yamato Payment Service (S) Pte. Ltd.
Yamato Autoworks Co., Ltd.
Yamato Autoworks Iwate Co., Ltd.

Truck MaintenanceYamato Autoworks Hokushinetsu Co., Ltd.
Yamato Autoworks Shikoku Co., Ltd.
Yamato Autoworks Okinawa Co., Ltd.
BoxCharter Co., Ltd.
Yamato Box Charter Co., Ltd.
Yamato • Staff • Supply Co., Ltd.

Other

Yamato Management Service Co., Ltd.
Yamato Multi Charter Co., Ltd.
Kobe Yamato Transport Co., Ltd.

Consolidated subsidiaries
Non-consolidated subsidiaries

Swan Co., Ltd.
* Fine Credit Co, Ltd., which is part of the Group’s Financial Business, was renamed Yamato Credit &Finance Co., Ltd. on August 1, 2012.

Annual Report 201229

Corporate Social Responsibility

The Yamato Group believes that its sustained growth iscarr ying out its operations. This is reflected in a number oflargely contingent upon not only business profitability, but

initiatives the Group implements. One such initiative is thealso fair and proper management as a business group with

Company’s program of safety classes for children, which

operations that require a high degree of social interaction.

we have been holding nationwide since 1998 to teachWith the interests of all stakeholders in mind, the Groupthem ways to protect themselves from traffic accidents. In

actively conducts Corporate Social Responsibility (CSR)

the fiscal year ended March 31, 2012, roughly 136,000

activities from the perspectives of safety, the environment

children participated in 1,285 of these classes heldand society, in line with the Yamato Group Corporate Phi-throughout Japan.

losophy at the heart of the Group’s business, with the aimof further becoming a company trusted by society.

Taught entirely by Yamato Transport employees, the funand entertaining classes employ various means to teachchildren about traffic safety. Furthermore, this initiative has

Safetyalso begun to spread throughout other companies within

Safety Classes for Children

the Group.

The Group places top priority on respect for human life in
Promoting the Deployment of See-T Navi
See-T Navi is a proprietary telematics system encouraging
safe and environmentally friendly driving that Yamato Transport developed and began deploying in March 2010. Thissystem, which records an extensive array of driving performance data, enables Yamato Transport sales drivers to
self-inspect their driving performance and make improvements. The data from this system can also be used to

Diagram of Yamato Group Corporate Philosophy

Changes in the Number of
Low-Emission Vehicles

20,000

Customers
15,000Local
residents

Shareholders

10,0005,000

Partners

Employees

0Management
Philosophy

Corporate
StanceEmployee Codeof Conduct

Yamato Group Corporate Philosophy

Precepts
Founding Spirit

30

Yamato Holdings Co., LTD.

2008 2009 2010 2011 2012 2013

n Hybrid Carsn CNG Carsn LPG Carsn Electric Vehicles
n Others
n Total(Plan)* The Company is planning to introduce 70 electric delivery vehicles
in 2013.

individually instruct sales drivers, and has functioned as astrong support for safe driving habits within the Group.
In May 2011, the Japan Federation of Freight Industries
awarded the See-T Navi system a Prize for Technology Developed to Reduce the Environmental Impact of Freight Transport at its 12th Freight Industry Environmental Awards. Asof March 31, 2012, there were 25,814 delivery vehicles at
Yamato Transport’s 69 main centers throughout Japanequipped with the See-T Navi system.

Environment
Active Deployment of Low-Emission Delivery Vehicles

Yamato Transport is promoting the development of these

The Yamato Group is actively engaged in activities for pro-satellite centers, which enable the pickup and delivery oftecting the environment.

parcels without the use of motor vehicles, apart from theIn the fiscal year ended March 2012, the Group engaged
in a wide range of initiatives for reducing carbon emissions

occasional mini-vehicle, in mainly urban districts anddensely populated residential areas.

during pickup and delivery that included the deployment ofelectric vehicles and the use of streetcars.
In a similar vein, we have continued to actively introduce

Society
Actively Employing People with Disabilities

low-emission vehicles. In the fiscal year ended March 31,

The Yamato Group, primarily through the Yamato Welfare

2012 we added 327 hybrid vehicles and 1,341 low-Foundation, promotes various activities for the realization ofemission vehicles to our fleet.

a society in which people with disabilities can enjoy the

As a result, the accumulative total of low-emission vehi-

world of work and the act of independently earning a living.

cles at Yamato Transport had reached 14,908 vehicles, orSuch support for helping people with disabilities gain

34.2% of the entire fleet.

their independence includes active employment at the Swan
Bakery, which produces and sells bread, and as couriers for
our Kuroneko Mail service. In addition, the Yamato Welfare
Foundation operates a support facility where people withdisabilities can receive training in vocational skills andknowledge.

Satellite Centers Eliminate Use of Vehicles for Parcel Delivery
The opening of more satellite centers reduces the delivery
area assigned to each sales driver. This change not only
enables drivers to provide more detailed services to eachcustomer, but also helps to curb increases in the number ofvehicles required to keep pace with increased parcel volume.

Annual Report 201231

Report on the Donation Drive of Ten Yen for Every Parcel We Deliver in Japanon March 11, 2011, the Yamato Group made the decision

Examples of Reconstruction with the Financial
Assistanceto donate ten yen for every parcel we deliver in Japan for a• Construction of temporary fishing market

period of one year, to provide financial assistance in the

Town of Minamisanriku, Miyagi Prefecture

recovery of the industrial base, and to support the recovery

Financial assistance allocated: ¥347 million

In response to the Great East Japan Earthquake that struckof the farming and fishing industries, in the affected areas.
As of March 31, 2012, these donations from the handlingof TA-Q-BIN parcels reached a grand total of ¥14,236 million.
These much appreciated funds were donated by Yamato
Holdings to the Yamato Welfare Foundation and recognized
as fully tax-exempt “designated donations” by Japan’s Minister of Finance. Combined with donations collected by theFoundation from other companies, organizations and individuals, the funds have been allocated exclusively for resto-

A view of the temporary fish market
that went into operation in October
2011

First auction at the market with thelargest landing of salmon in Miyagi
Prefecture

ration and revitalization of the local infrastructure and forrebuilding of the fishing and agriculture industries in the• Provision of agricultural machinery and other equipment

region. An independent committee of experts selected proj-(89 entities)

ects for grants under a basic policy of visible, quick andMiyagi Prefecture

effective assistance. Priority was placed on types of proj-

Financial assistance allocated: ¥1,324 million

ects that do not normally receive government support.
As of April 26, 2012, 31 projects have received funding,including construction of a temporary fish market in Minamisanriku, Miyagi Prefecture, and a daycare center in Noda,
Iwate Prefecture. We would like to take this opportunity toreport that the grants have totaled ¥14,266 million.
Assistance Projects by Industrial Base (as of April 26, 2012)
Fishing

16 projects ¥7,589 million

Agriculture

5 projects ¥2,449 million

Lifestyle

7 projects ¥3,865 million

Commerce and manufacturing

3 projects   ¥363 million

Many agricultural facilities and machinery were severely damaged
in the tsunami.
Yamato provided financial assistance to farmers who resumed farming as
early as possible.

• Reconstruction of daycare center for children
Noda Village, Iwate Prefecture

We would like to sincerely thank everyone who used

Financial assistance allocated: ¥280 million

TA-Q-BIN as well as shareholders, investors and government
officials for their understanding and support for the YamatoGroup’s activities.
This fundraising initiative was concluded on March 31,
2012, but we intend to continue helping in reconstruction
efforts and assisting in the recovery of the entire region as
quickly as possible through our business activities.
Site of the old daycare center that was Elevated grounds where the daycare
damaged in the tsunami
center is planned for reconstruction

32

Yamato Holdings Co., LTD.

Corporate Governance
As of March 31, 2012

Basic Position on Corporate Governancebusiness matters.

Based on its corporate philosophy, the Yamato GroupThe number of Board members cannot exceed 12 ascarries out business activities in accordance with the law

stipulated in the Company’s articles of incorporation. The

and social norms and actively promotes complianceterm of office for directors has been set at one year in ordermanagement.

to clarify management responsibilities for each fiscal year.

Striving to maximize corporate value by effectively utilizing the management resources of the Group is one of theOutside Directors and Outside Auditors

top priorities of management, and we work to bolster man-

To ensure objective checks of management, two of the six

agement systems and implement corporate governancedirectors are outside directors.
Similarly, three of the four auditors are outside auditors

policies to this end.

to reinforce supervision of business execution.

The current status of provision for oversight of business

Both outside directors have ample experience and exten-

execution and management, internal control and related

sive knowledge, Masayoshi Sato being a lawyer andfunctions at the Yamato Group is illustrated as follows.

Toshitaka Hagiwara being a businessman. They comment

Status of Corporate Governanceand advise as needed on all aspects of business manage-

The Board of Directors, Management Advisory Committee

ment. Collaboration with the Independent Auditor and theand Executive Committee serve as administrative organs

Audit Division enhances governance.

involved in decision-making, execution and supervision of

Similarly, all outside auditors have ample expertise in

the Yamato Group. This management structure enables

finance and accounting. They are Keiko Kitamura, andecisions to be made rapidly and precisely on importantaccounting professor at a university, Koji Okawa, whose

Corporate Governance Framework
General Meeting of Shareholders
Elect

Elect

Board ofAuditors

Elect/
Supervise

Audit

Nomination andCompensation
Committee

Board ofDirectors

Management
Advisory Committee

ReportReportIndependent
Auditor

Elect

Make decisions/Supervise

ReportExecutive
Committee

Accounting
audit

Execute business

Propose/ReportCSR Division

Legal Advisor

Propose/ReportInternal
audit

Audit Division

Group Companies

Annual Report 201233

experience has included working for a financial institution

the auditors to put in place a framework that enables theand a tax and accounting firm, and Motoharu Yokose, a

auditors to smoothly carry out their functions.

certified public accountant.

In addition, Group Auditors’ Liaison Meetings are held

Outside auditors attend Board of Auditors meetings asperiodically for the full-time auditors of the major operating

well as periodic meetings to exchange opinions with thecompanies to confer on auditing policies and procedures,president and auditors and to present opinions from theirexchange information and otherwise enhance collaboration.

own standpoint as auditors. These meetings also serve to

Meetings with internal auditors are also held periodically toconfirm the status of directors’ execution of duties, byexchange information.

means of including questions regarding management policy.
The abovementioned two outside directors and three

Internal audits are performed by a 10-member team that
operates independently from any other Group organ.

outside auditors have no conflicts of interest with the

Together with the 115 employees who conduct internalGroup.

audits for Group companies, the Yamato Group has a total

The Group maintains a policy of satisfying the indepen-of 125 internal auditors, who check whether the business

dence criteria of the Tokyo Stock Exchange, Inc., when

and affairs of the Group as a whole are being carried out

choosing outside directors and auditors.

appropriately and efficiently based on the annual auditing

The Group has notified the Tokyo Stock Exchange that allplan. A structure is in place under which results are

the above outside directors and auditors are independent,

reported to the Board of Directors and the Board ofas required.

Auditors.

Outside Auditor Keiko Kitamura resigned at the closing of

Also, the Group Internal Auditing Committee meets regu-

the Ordinary Meeting of Shareholders on June 26, 2012. In

larly for the internal auditors of the operating companies toher place, Hiroyuki Kanae was nominated and appointed asconfer on problems and proposed improvements based ona new outside auditor.

auditing policies and audit results. At the same time, management collaborates with Group companies’ internal con-

Status of Internal Audits, Audits by Auditors andAccounting Audits

trol divisions to improve and build systems to validate
internal controls.

The Board of Auditors is made up of one full-time auditor

As the Group’s appointed Independent Auditor, Deloitte

and three outside auditors. Auditors attend meetings of the

Touche Tohmatsu LLC holds regular meetings with auditors

Board of Directors and other important meetings to audit

and conducts effective accounting audits. Accounting audits

the execution of duties by the directors, and otherwise

are performed by two certified public accountants, Yoshiaki

endeavor to improve the soundness of management andKitamura and Kazuhide Kobori, assisted by another six

the trust of the public.

certified public accountants and 12 other staff members.

A full-time staff member has been appointed to assist

Compensation of Directors and Auditors
Details of Compensation for Directors and Auditors

Director and auditor category

34

Total compensation andother remuneration(Millions of Yen)

Total by compensation andremuneration category(Millions of Yen)
Basic compensation

Headcount of eligible
directors and auditors

Directors (excluding outside directors)

222

222

5

Auditors (excluding outside auditors)

20

20

1

Outside directors and auditors

34

34

5

Yamato Holdings Co., LTD.

To ensure the objectivity and transparency of policies for

Director compensation comprises fixed remuneration that

determining director compensation, deliberations arereflects external standards and performance-based

through the Nomination and Compensation Committee,

amounts. The compensation of auditors and external direc-

more than half of whose members are outside directors,

tors is fixed in keeping with the nature of their work.

with the Board of Directors making resolutions.

Compensation of Accounting Auditor
Details of Compensation for Certified Public Accountants and Staff of the Accounting Auditor
Fiscal year ended March 31, 2011

Category

Compensation paid
for audit certification
activities(Millions of Yen)

Yamato Holdings Co., Ltd.

40

Fiscal year ended March 31, 2012

Compensation paid
for non-audit activities(Millions of Yen)

Compensation paid
for audit certification
activities(Millions of Yen)

Compensation paid
for non-audit activities(Millions of Yen)

62

41

8

Consolidated subsidiaries

133

—

133

—

Total

173

62

174

8

Other Important Compensation Details

Details of Non-Audit Activities of Certified PublicFiscal year ended March 31, 2011

Accountants and Staff of the Accounting Auditor

The compensation that eight overseas subsidiaries, includ-

Fiscal year ended March 31, 2011

ing consolidated subsidiary Yamato Transport U.S.A., Inc.,

The non-audit activities for which the Company paid thepaid to Deloitte Touche Tohmatsu Limited, which is part ofcertified public accountants and staff of the accounting

the same network of the accounting firm that audits Yamato

auditors mainly entailed producing comfort letters in con-Holdings, was as follows.

nection with the issue of euro-yen denominated convertible

Compensation paid for audit certification and related

corporate bonds with subscription rights to shares that

activities: ¥89 million

mature in 2016, as well as providing advice and guidance
relating to the introduction of International Financial Report-

Fiscal year ended March 31, 2012

ing Standards.

The compensation that 10 overseas subsidiaries, including
consolidated subsidiary Yamato Transport U.S.A., Inc., paid

Fiscal year ended March 31, 2012

to Deloitte Touche Tohmatsu Limited, which is part of the

Non-audit activities for which the Company paid the certified

same network of the accounting firm that audits Yamato

public accountants and staff of the accounting auditors

Holdings, was as follows.

entailed advice and guidance on the introduction of Interna-

Compensation paid for audit certification and related

tional Financial Reporting Standards.

activities: ¥82 million
Policy for Determining Accounting Auditor Compensation
We determine audit compensation for the certified public
accountants and staff of the accounting auditor based on
the number of days required for audits, the Company’s size,
and the nature of its operations.

Annual Report 201235

Directors and Auditors
As of June 26, 2012

1

2

3

4

5

6

7

8

9

Outside Directors

Directors
1.

Kaoru Seto
Representative Director andChairman2.

Makoto Kigawa
Representative Director,
President and Executive Officer

3. Haruo Kanda

Representative Director andManaging Executive Officer

Yamato Holdings Co., LTD.

Masayoshi Sato6.

Toshitaka Hagiwara

4. Masaki Yamauchi

Managing Executive Officer

Director and Executive Officer(Representative Director, President andExecutive Officer of Yamato Transport Co., Ltd.)

36

5.

7.

Kenichi Shibasaki

10

11

12

13

14

15

16

17

18

Auditors

Executive Officers
8.

9.

Kenji Minaki

11. Atsushi Ichino(Representative Director, President and(Representative Director, President andExecutive Officer of Yamato System

Executive Officer of Yamato Home

Development Co., Ltd.)

Convenience Co., Ltd.)

Toshizo Kurisu

12. Tadao Mikami(Representative Director, President and(Global Marketing and Development)

Executive Officer of Yamato Financial Co., Ltd.)

10. Hitoshi Kanamori

13. Hidenori Osano(Representative Director, President and(Corporate Strategy, IT Planning, Solution

Executive Officer of Yamato Logistics Co., Ltd.)

Laboratory)

14. Hiroshi Kawada
15. Koji Okawa
16. Motoharu Yokose
17. Hiroyuki Kanae

Advisor18. Keiji Aritomi

Annual Report 201237

Analysis of Financial Position and Management Results

services for comfortable lifestyles and developing an
innovative logistics system.” Guided by this philosophy,

Kenichi Shibasaki
Managing Executive Officer
responsible for Financing andAccounting

we aim to generate sustained growth and maximize corporate value by balancing growth potential, financial
soundness and operating efficiency.
In January 2011, we formulated and announced along-term management plan, DAN-TOTSU Management

A Message from the Managing Executive Officer

Plan 2019, whose final year is fiscal 2020, the 100th

I was appointed as the managing executive officer

anniversary of our founding, and a medium-term manage-

responsible for Financing and Accounting of Yamato

ment plan, whose final year is fiscal 2014, DAN-TOTSU

Holdings Co., Ltd. on April 1, 2012.

Three-Year Plan HOP.

In this year’s annual report, I would like to look backThe goal is to establish DAN-TOTSU (unassailable)on the year ended March 31, 2012 and discuss the

positions in solution capability, delivery quality and cus-

Yamato Group’s capital policies.

tomer satisfaction as a leading provider of distribution
and lifestyle support solution services in Asia by the year

The Current State and Future Direction of theending March 2020, when we will celebrate our 100th

Yamato Group’s Finance Strategy

anniversary. The major theme is to increase satisfaction

The management philosophy of the Yamato Group is
to help “enrich our society by enhancing the social infra-of shareholders, customers, the public, employees andall other stakeholders.

structure of TA-Q-BIN networks, creating more convenient

To raise shareholder value, we have declared ROE toOperating Revenues

Operating Income/Operating Margin(Millions of Yen)

(Millions of Yen, %)1,400,000

8.0

80,0001,225,974

1,251,922
1,200,834

1,200,000

1,236,520

1,260,833
68,18064,314

66,651

61,38960,0001,000,000

5.6

6.0

55,7215.1

800,000

5.2

5.3

4.5
40,000

4.0

20,0002.0

600,000

400,000

200,000

0

2009

2010

2011

2012

2008
n
n

38

0

0

2008

Yamato Holdings Co., LTD.

2009

2010

Operating Income (left scale)Operating Margin (right scale)

2011

2012

be an important benchmark to keep in mind in order toAttainment of Numerical Targets in Fiscal 2012 andachieve both strengthened capital accumulation and

Evaluation

utilization of business assets. We plan to raise ROE to

In fiscal 2012, the business environment gradually

8.5% in the year ending March 2014, the final year oftrended towards recovery, backed by growing restoration

the medium-term management plan, and to over 11.0%

demand associated with the Great East Japan Earth-in the year ending March 2020, the final year of the long-quake that occurred in March 2011, although the overallterm management plan.

Japanese economy showed signs of stagnation, mainly

From my perspective as Managing Executive Officer, I

due to slowdowns in overseas economies because of therecognize that the keys for success are to increase ourEuropean debt crisis, and the yen’s further appreciation.

profitability by steadily executing our business plan, andAgainst this backdrop, in fiscal 2012, the first year of

also raising capital efficiency by implementing flexible

our medium-term management plan, DAN-TOTSU Three-capital policies, as and when needed, by taking advan-

Year Plan HOP, the Yamato Group was unable to achieve

tage of our solid financial base. And we must tie these

operating income above the Company’s plan because of

improvements to a further increase in corporate value.

lower handling volume of Kuroneko Mail due to stricter

My role as the Managing Executive Officer responsible

policies on parcel acceptance that emphasize compli-

for Financing and Accounting is to pursue the optimal

ance. However, the Yamato Group made progress devel-

capital structure that will support the maximization ofoping new businesses for properly responding toour corporate value.

customers’ increasingly sophisticated needs. This, andstrong TA-Q-BIN handling volume in an expanding mailorder market, supported our performance.

Net Income/Net Margin

Operating and Investing Cash Flows/Free Cash Flows(Millions of Yen, %)(Millions of Yen)
4.0

40,000120,000

116,896

35,35384,46333,20832,28280,00042,821

2.9
25,5232.7

20,00040,0002.7

2.071,84361,3683.0

30,00087,89977,06436,22030,75019,787

2.0

0

4,857

1.6

(23,095)(40,000)(34,243)(41,093)(51,679)

1.0

10,000(80,000)

0

0

2008
n
n

2009

2010

2011

(120,000)2012(112,039)

2008

2009

2010

Net Income (left scale)nCash Flows from Operating Activities

Net Margin (right scale)nCash Flows from Investing Activities

2011

2012

Free Cash Flows* Free Cash Flows = Cash Flows from Operating Activities + Cash
Flows from Investing ActivitiesnAnnual Report 201239

Operating revenues increased 2.0% year on year to

Finance. Combined with donations collected by the Founda-¥1,260,833 million and operating income increasedtion from other companies, organizations and individuals,

3.6% to ¥66,651 million. These figures were close to

the funds have been allocated exclusively for restoration

record-high revenues and earnings.

and revitalization of the local infrastructure and for rebuild-

Net income, however, decreased 40.4% to ¥19,787

ing of the fishing and agriculture industries in the region.

million. This decrease was mainly due to recording

An independent committee of experts selected projects for¥14,236 million in donations concerning restoration

grants under a basic policy of visible, quick and effective

support under other expenses by implementing the “tenassistance. Priority was placed on types of projects that doyen for every parcel we deliver in Japan” initiative.

not normally receive government support.

Regarding this initiative, as we explained in “A Mes-

Since the fundraising initiative came to an end on

sage from the President” on page 5 and “Report on the

March 31, 2012, the Company will not incur more spe-

Donation Drive of Ten Yen for Every Parcel We Deliver incial charges for donations going forward.

Japan” on page 32, we continued to support the revital-

In fiscal 2012, in addition to recording special

ization of local people’s living conditions and industrial

charges for donations, as explained above, we preparedinfrastructure in areas affected by the Great East Japanfor making investments needed for future growth, includ-

Earthquake to fulfill our social responsibility as a logis-

ing the Haneda Chronogate logistics terminal. Conse-

tics provider.

quently, we took steps to secure cash in order to

The entire amount was donated by Yamato Holdings toincrease liquidity at hand. As a result, the shareholders’

the Yamato Welfare Foundation and recognized as fully

equity ratio was 56.0% and ROE dropped temporarily to a

tax-exempt “designated donations” by Japan’s Minister oflow level of 3.8%.

Interest-Bearing Liabilities/Equity

ROA/ROE(Millions of Yen)(%)

600,000

8.00
523,473

500,000

475,984

524,505

7.8

523,784

486,259

6.5

6.5

6.00
5.4

400,000
4.2
4.00

300,000

3.7

3.8

3.7

2.9
200,000
2.2
2.00
112,222
100,000

107,427
81,598101,373

92,780

0

0

2008

40

2009

2010

2011

2012

2008

n Interest-Bearing Liabilities

n ROA

n Equityn ROEYamato Holdings Co., LTD.

2009

2010

2011

2012

However, cash flows from operating activities for the

fiscal year ended March 31, 2003 to the fiscal year

year ended March 31, 2012 were over ¥70 billion. We

ended March 31, 2007, for a total of about ¥50.0 billion

therefore continue to generate stable cash flows ofover five years (about 28 million shares). Of thesebetween ¥70 billion and ¥80 billion per year.

shares, approximately 12 million shares were retired in

Free cash flows, which are the total of cash flows

the fiscal year ended March 31, 2006, and approxi-

from operating activities and cash flows from investing

mately 3 million shares were used for M&As in the fiscal

activities, were ¥30,750 million. This cash has allowed

years ended March 31, 2007 and March 31, 2008.

us to maintain the agility and flexibility of financial activities while sufficiently covering ordinary expenditures.
Leveraging our solid financial base, we will pursue theAim of Issuance of Corporate Bonds with New Share
Warrants and Share Buybacks

optimal capital structure while balancing operating effi-

The Yamato Group implemented share buybacks based

ciency and financial soundness.

on the conclusion that utilizing liability-like funds in addition to some of its own funds, while remaining aware of

Implementation of Capital Policies to Enhance

the need to contain capital cost increases, was the mostFinancial Quality

effective scheme for a finance strategy aimed at expand-

In February 2011, we passed a resolution for issuance ofing corporate value, and the optimal method of fundcorporate bonds with new share warrants attached for the

procurement.

purpose of share buybacks as part of our flexible financestrategy.
Proceeds of approximately ¥20.0 billion from the issu-

We selected this scheme for share buybacks because
we believed that buying back shares using low-cost
corporate bonds with new share warrants attached andance of corporate bonds with new share warrants wereenhanced debt characteristics would enable capital effi-

allocated in their entirety to share buybacks by the end

ciency, such as ROE and EPS, to be improved.

of February 2012 for the purpose of enhancing capitalefficiency. With regard to share buybacks, we passed a

Credit Ratings

resolution at the same time as the resolution for issuing

As of March 2012, Yamato Holdings has received thecorporate bonds with new share warrants that set anfollowing credit rating from Rating & Investment Informa-

upper limit on total purchases of ¥30.0 billion and ation, Inc. (R&I):

buyback period of one year.
Share buybacks based on the aforementioned resolu-

R&I AA–tion were completed on April 27, 2011. These buybacks
resulted in the repurchase of approximately 23.6 million

The Yamato Group will strive to minimize risk of loss

shares at a total cost of approximately ¥30.0 billion,of performance to secure target profits, maintaining

representing our largest buybacks ever.

awareness of capital costs, while at the same time main-

The Yamato Group bought back about ¥10.0 billion inshares continuously every year for five years from thetaining the existing credit rating in order to facilitatesmooth capital procurement.

Annual Report 2012

41

Risk Management(2) Leak of Customer Information

The Yamato Group is fully aware of the potential impact of

The Yamato Group handles information for many custom-

the following risks on its business performance and finan-ers, including the personal information of customers forcial position, and is accordingly managing these risks.

the TA-Q-BIN and moving services. Although the GroupThe following risks are solely within the scope of pro-strictly manages information, as part of which it con-jections possible from information available at the end ofducts internal audits to monitor such management,

March 2012, and may not encompass all of the risks

leaks of information outside the Group could reduce

related to the business of the Yamato Group.

social trust and affect Group results.

The Yamato Group has six main business segments.
These include the Delivery Business, which centers on(3) Package Damage or Loss

TA-Q-BIN services, and other operations combining logis-

The Yamato Group has earned strong trust amongtics technology (LT), information technology (IT), andcustomers, securing a competitive edge by providing

financial technology (FT).

high-quality ser vices.

In fiscal 2012, the TA-Q-BIN business accounted for

The Group uses a multi-layered approach to review

more than 60% of the consolidated operating revenues

and manage data on quality levels from each of itsof the Yamato Group. It therefore has a significant

TA-Q-BIN centers nationwide as it strives daily to improve

impact on Group results.

the quality of its services. Nonetheless, an incident,

Accordingly, any threats to the continuity of the
TA-Q-BIN business could profoundly affect Group results.

such as damage to or loss of packages that customers
entrust to the Group, could lead to a loss of social trust
and affect Group results.

1. Loss of Social Trust(1) Major Traffic Accident

2. Legal and Official Regulations

The Yamato Group’s operations center on the Delivery(1) Legal Regulations

Business, whose vehicles operate on public roads. Not-

The Yamato Group is regulated by various laws andwithstanding the Group’s commitment to safety precau-

ordinances.

tions out of an utmost respect for human life, a major

Compliance management is a top priority for the

traffic accident could cause social trust to decline,

Group, which acts accordingly. However, the Group’s

affecting Group results.

business activities could be restricted by revisions inlaws or ordinances, causing a decline in operating revenues or an increase in costs to achieve compliance,
thereby affecting Group results.

(2) Official Regulation Due to Environmental Issues
The Yamato Group uses many vehicles in the course ofbusiness.

42

Yamato Holdings Co., LTD.

Amid growing interest in environmental issues, theBasic Policy on Distribution of ProfitsGroup has already actively undertaken environmental

The Yamato Group conducts business fully recognizing

measures, such as deploying low-emission vehicles andthat levels of capital cost should reflect the expecta-

promoting eco driving. However, unexpectedly strict

tions shareholders and investors hold for the earnings

environmental regulations could be enacted, causing anof the Yamato Group.

increase in costs to achieve compliance and otherwise
affecting Group results.

Over the medium and long terms, we have a basic
policy of paying dividends with a target consolidated
dividend payout ratio of 30% of consolidated net income,3. Unforeseen International Developments or Natural
Disasters(1) International Developments or Terrorism

while considering the need to invest for driving future
growth and maintaining a stable management base.
For the fiscal year ended March 31, 2012 we paid

Terrorism, wars or other international conflicts, or out-

dividends of ¥22 per share, including an interim dividend

breaks of new strains of influenza or other infectiousof ¥11.

diseases could threaten the continuity of the Yamato

For the fiscal year ending March 31, 2013, we will

Group’s TA-Q-BIN business and affect Group results.

decide on the dividend per share after comprehensively
considering a range of factors such as the business(2) Natural Disasters or Power Outages

environment and our performance, as well as the above-

The Yamato Group does business activities with equip-

mentioned policy.

ment requiring electricity, including automatic package
sorters and computers that manage information.

We ask our shareholders for your ongoing encouragement and support.

Although the Group inspects and checks all equipment regularly to prevent accidents, an unforeseen natural disaster or power outage that hampers freight could
affect Group results.

(3) Computer Viruses and Criminal Hacking Activity
The Yamato Group manages information at locations inTokyo and Osaka and employs state-of-the-art network
technologies and a manned monitoring system that operates around the clock.
However, an unanticipated computer virus infection or
hacker attack could force the Group to partially halt computer systems or sales activities, affecting Group
results.

Annual Report 201243

Consolidated Balance Sheet
March 31, 2012

Thousands of
U.S. Dollars(Note 1)Millions of Yen

ASSETS

2012

2011

2012

¥ 209,179¥ 209,178$ 2,545,067

Trade158,175

142,096

1,924,502

Installment (Note 3)

35,53941,151

432,401

Lease (Note 11)18,92517,506230,255

Allowance for doubtful accounts(2,261)(3,487)(27,502)

CURRENT ASSETS:
Cash and cash equivalents (Notes 2.d and 12)
Notes and accounts receivable (Note 12):Inventories (Note 4)

3,345

2,713

40,699Deferred tax assets (Note 10)

17,07818,185

207,790

Prepaid expenses and other current assets

24,47522,913297,785

464,455

450,255

5,650,997

Land

182,304

182,421

2,218,075

Buildings and structures

273,712271,232

3,330,240

Vehicles

182,004

179,979

2,214,436

Leased assets (Note 11)25,937

24,826

315,575

Machinery and equipment

105,325

107,233

1,281,487

Construction in progress

30,052

13,796

365,636

Others

6,243

3,989

75,953

Total current assets

PROPERTY, PLANT AND EQUIPMENT—At cost:

805,577

783,476

9,801,402(430,397)(415,321)(5,236,618)

375,180

368,155

4,564,784

Investment securities (Notes 5 and 12)

18,74918,910228,120

Investments in and advances to nonconsolidated subsidiaries and affiliates,
net of valuation allowance of ¥222 million ($2,701 thousand) in 2012 and¥315 million in 2011

3,339

4,102

40,629952

1,089

11,582

Total
Accumulated depreciation
Net property, plant and equipment

INVESTMENTS AND OTHER ASSETS:

Long-term loans
Goodwill

585

779

7,114

Software

12,01810,447

146,228

Lease deposits

20,202

21,705

245,797

Deferred tax assets (Note 10)17,197

17,276

209,228

Other assets

6,618

6,645

80,516

Total investments and other assets
TOTAL
See notes to consolidated financial statements.

44

Yamato Holdings Co., LTD.

79,66080,953

969,214¥ 919,295¥ 899,363$11,184,995

Thousands of
U.S. Dollars(Note 1)Millions of Yen

LIABILITIES AND EQUITY

2012

2011

2012

¥  5,260¥  8,631$    63,991

17,082

18,305

207,829Trade

129,454

113,699

1,575,060

Construction

21,736

17,694

264,461

Income taxes payable

17,631

20,447

214,517

Employees’ savings deposits

4,200

3,934

51,106

Accrued expenses

57,80156,753

703,262

Deferred profit on installment sales (Notes 3 and 12)

4,960

6,363

60,346

Other current liabilities (Note 8)

24,22018,507

294,684

Total current liabilities

282,344

264,333

3,435,256

70,43974,438857,023

CURRENT LIABILITIES:
Short-term bank loans (Notes 6 and 12)
Current portion of long-term debt (Notes 6, 12 and 13)
Notes and accounts payable (Note 12):

LONG-TERM LIABILITIES:Long-term debt (Notes 6, 12 and 13)
Long-term accounts payable

3,798

90

46,205

Liability for employees’ retirement benefits (Note 7)

31,73328,471

386,100

Retirement allowances for directors and corporate auditors
Deferred tax liabilities (Note 10)

8

8

97

269

785

3,279

Other long-term liabilities (Note 8)

6,920

6,733

84,195

Total long-term liabilities

113,167

110,525

1,376,899

Common stock—authorized, 1,787,541,000 shares in 2012 and 2011;
issued, 468,052,892 shares in 2012 and 2011

127,235

127,235

1,548,057

Capital surplus

121,314

121,315

1,476,024

Retained earnings

321,862

311,569

3,916,078

Treasury stock—at cost, 37,905,955 shares in 2012 and28,716,928 shares in 2011

(56,514)(44,631)(687,608)

2,976

1,501

36,209COMMITMENTS LIABILITIES (Note 11)
EQUITY (Notes 9 and 17):

Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total(1,877)(1,387)(22,837)

514,996515,6026,265,923

Minority interests

8,788

8,903

106,917

Total equity

523,784

524,505

6,372,840¥919,295¥899,363$11,184,995

TOTAL

Annual Report 201245

Consolidated Statement of Income
Year Ended March 31, 2012

Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING REVENUES

2012

2011

2012

¥1,260,833¥1,236,520$15,340,466

1,163,777

1,143,006

14,159,596

OPERATING COSTS AND EXPENSES:
Operating costs

30,40529,200369,933

1,194,182

1,172,206

14,529,529

66,65164,314810,937

Interest and dividend income

(606)

(559)

(7,371)

Interest expense

737

874

8,969

Loss on disposal of property, plant and equipment—net

286

190

3,474

Selling, general and administrative expenses
Total operating costs and expenses
Operating income
OTHER (INCOME) EXPENSES:

Gain on sales of marketable and investment securities
Loss on valuation of investment securities

(45)
1,982

85

Reversal of allowance for investment loss of a nonconsolidated subsidiary

24,112(91)

Donations concerning restoration support

14,236173,209

Retirement benefits related to the extension of the retirement age

4,444

54,066

Loss on adjustment for adoption of accounting for asset
retirement obligations

1,642
(245)

382

(2,979)20,834

2,478

253,480

45,817

61,836557,457

Current

25,69029,563

312,574

Deferred369(1,072)

4,488

26,05928,491

317,062

19,75833,345

240,395

Other—net
Other expenses—net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXES (Note 10):

Total income taxes
NET INCOME BEFORE MINORITY INTERESTSMINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIESNET INCOME

(29)

137

(350)

¥   19,787¥   33,208$   240,745

Yen

U.S. Dollars

2012

2011

2012

PER SHARE OF COMMON STOCK (Notes 2.s and 15):
Basic net income¥    46.00¥    73.42$      0.56

Diluted net income

44.87

73.30

0.55

Cash dividends applicable to the year

22.00

22.00

0.27

See notes to consolidated financial statements.

46

Yamato Holdings Co., LTD.

Consolidated Statement of Comprehensive Income
Year Ended March 31, 2012

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2012

2011

2012

¥19,758¥33,345$240,395

Unrealized gain (loss) on available-for-sale securities

1,514(1,757)

18,424Foreign currency translation adjustments

(433)

(768)

(5,275)NET INCOME BEFORE MINORITY INTERESTSOTHER COMPREHENSIVE INCOME (Note 14):

Total other comprehensive income (loss)
COMPREHENSIVE INCOME

1,081(2,525)

13,149¥20,839¥30,820$253,544¥20,827¥30,868$253,401

12

(48)

143

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent
Minority interests
See notes to consolidated financial statements.

Annual Report 201247

Consolidated Statement of Changes in Equity
Year Ended March 31, 2012

Thousands

Millions of Yen
Accumulated Other
Comprehensive Income

Outstanding
Number of
Shares ofCommonStock

BALANCE, APRIL 1, 2010
Net income
Cash dividends, ¥22 per share
Adjustment of retained earnings
for changes in the scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Net change in the year

453,770

BALANCE, MARCH 31, 2011
Net income
Cash dividends, ¥22 per share
Adjustment of retained earnings
for changes in the scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2012

439,336

CommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Unrealized(Loss)
Gain onAvailablefor-Sale
Securities¥127,235¥121,315¥288,408
33,208(9,983)¥(26,506)¥ 3,197

Foreign
Currency
Translation
Adjustments¥  (739)(64)(14,435)1(18,127)2
127,235

121,315

311,569
19,787(9,564)(44,631)(1,696)

(648)

1,501

(1,387)70(9,190)1
430,147¥127,235¥121,314¥321,862¥(56,514)¥512,910
33,208(9,983)(64)(18,127)
2(2,344)515,602
19,787(9,564)

Minority
Interests

Total
Equity¥10,563¥523,473
33,208(9,983)(1,660)8,903

70(11,884)(11,884)
1

(1)

Total

1,475
¥ 2,976(490)¥(1,877)985¥514,996(64)(18,127)2(4,004)
524,505
19,787(9,564)70(11,884)(115)¥ 8,788870¥523,784

Minority
Interests

Total
EquityThousands of U.S. Dollars (Note 1)
Accumulated Other
Comprehensive Income

CommonStock

BALANCE, MARCH 31, 2011
Net income
Cash dividends, $0.27 per share
Adjustment of retained earnings
for changes in the scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2012
See notes to consolidated financial statements.

48

Yamato Holdings Co., LTD.

CapitalSurplusRetained
Earnings

Treasury
Stock

Unrealized
Gain onAvailablefor-Sale
Securities$1,548,057 $1,476,026 $3,790,842 $(543,015) $18,268
240,745(116,369)860(2)$1,548,057 $1,476,024 $3,916,078(144,603)
10
17,941$(687,608) $36,209

Foreign
Currency
Translation
Adjustments

Total$(16,875) $6,273,303
240,745(116,369)$108,320 $6,381,623
240,745(116,369)

860(144,603)
8(5,962)
11,979$(22,837) $6,265,923

860(144,603)
8(1,403)
10,576$106,917 $6,372,840

Consolidated Statement of Cash Flows
Year Ended March 31, 2012

Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Loss on disposal of property, plant and equipment—net
Loss on adjustment for adoption of accounting for asset retirement
obligations
Gain on sales of marketable and investment securities
Loss on valuation of investment securities
Donations concerning restoration support paid
Changes in assets and liabilities, net of effects from newly consolidated
subsidiaries:(Increase) decrease in notes and accounts receivable
Increase in inventories
Increase in notes and accounts payable
Increase in liability for employees’ retirement benefits
Other—net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Proceeds from sales of marketable and investment securities
Purchases of marketable and investment securities
Increase in investments in and advances to nonconsolidated subsidiaries andaffiliates
Collection of loans
Payments of loans
Other
Net cash used in investing activities
FINANCING ACTIVITIES:
Proceeds from short-term bank loans
Repayments of short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
Purchase of treasury stock—net
Other
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH
EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATED SUBSIDIARIES,BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS DECREASED BY EXCLUSION OF CONSOLIDATEDSUBSIDIARYCASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.d)

2012

2011

2012

¥ 45,817¥ 61,836$  557,457(26,743)
38,685286(27,631)
39,586190(325,375)
470,674
3,474

1,982
(13,088)

1,642
(45)
85

24,112(159,237)(11,962)(520)
15,771
3,264
18,351
26,026
71,843

12,974
(828)
737
609
(1,256)
26,06387,899(145,540)(6,327)
191,887
39,718223,274
316,660
874,117788(35,913)
9
(11)

493
(42,914)
1
(10)

9,587
(436,952)
106
(132)

(1,202)969(788)(4,945)(41,093)(1,982)
1,109(682)(7,694)(51,679)(14,627)
11,798(9,589)(60,163)(499,972)

23,214(32,410)9,850(13,008)(9,707)(11,889)
1,033(32,917)65,033(81,849)
36,884(13,008)(10,112)(18,131)1,030(20,153)

282,441(394,329)
119,844(158,267)(118,103)(144,649)
12,564(400,499)(182)(2,349)(467)
15,600(2,218)(28,572)

1,950

3,854

23,723208,792¥208,393(13)
189,351¥208,792

2,540,357$2,535,508

See notes to consolidated financial statements.

Annual Report 201249

Notes to Consolidated Financial Statements
Year Ended March 31, 2012

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications and rearrangements have been made in the 2011 consolidated financial statements toconform to the classifications and presentations used in 2012.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Yamato Holdings Co., Ltd.
(the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts are included
solely for the convenience of readers outside Japan and have been made at the rate of ¥82.19 to $1, the approximate rate ofexchange at March 31, 2012. Such translations should not be construed as representations that the Japanese yen amounts could
be converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2012 include the accounts of the Company and its 39
significant (36 in 2011) subsidiaries (together, the “Group”).
Under the control or influence concept, those companies in which the Company, directly or indirectly, is able to exercise control
over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence areaccounted for by the equity method.
The non‍‍consolidated subsidiaries, whose combined assets, net sales, net income and retained earnings in the aggregate are notsignificant to the consolidated financial statements, have not been consolidated with the Company.
There were no affiliates accounted for by the equity method in 2012 or 2011.
Investments in the non‍consolidated subsidiaries and affiliates are stated at cost less a valuation allowance representing possible
losses on the investments that are deemed to be other than temporary. If the equity method of accounting had been applied to theinvestments in such companies, the effect on the accompanying consolidated financial statements would not be material.
The excess of the costs over the underlying net equity of investments in consolidated subsidiaries is recognized as goodwill andamortized on a straight‍‑‍line basis over a five‍‑‍year period, with the exception of minor amounts which are charged or credited toincome in the period of acquisition.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Group is also eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements— In May 2006,
the Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ Practical Issues Task Force (PITF) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements.” PITF No. 18 prescribes(1) the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events
under similar circumstances should in principle be unified for the preparation of the consolidated financial statements, (2) financial
statements prepared by foreign subsidiaries in accordance with either International Financial Reporting Standards or the generally
accepted accounting principles in the United States of America tentatively may be used for the consolidation process, (3) however,the following items should be adjusted in the consolidation process so that net income is accounted for in accordance with Japanese
GAAP unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions thathas been directly recorded in equity; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value modelaccounting for property, plant and equipment and investment properties and incorporation of the cost model accounting; and50

Yamato Holdings Co., LTD.

(e) exclusion of minority interests from net income, if contained in net income.
c. Recognition of Operating Revenues— The Group recognizes freight charge income as operating revenues at the time when freight
has been received from the shipping customer for transportation.
Fees from customers based on installment sales contracts are recognized by equal installment method.
d. Cash Equivalents— Cash equivalents in the consolidated statement of cash flows are short‍‑‍term investments that are readily
convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statementof cash flows include time deposits, certificate of deposits and mutual funds investing in bonds that represent short‍‑‍term investments, all of which mature or become due within three months of the date of acquisition.
The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash equivalents in the accompanying consolidated statement of cash flows is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Cash and cash equivalents presented in the consolidated balance sheet
Time deposits due beyond three months
Bank overdraft
Cash and cash equivalents presented in the consolidated statement of cash flows

2012

2011

2012

¥209,179
(490)
(296)
¥208,393¥209,178
(105)
(281)
¥208,792$2,545,067(5,962)(3,597)$2,535,508

e. Inventories— Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.
f. Marketable and Investment Securities— Marketable and investment securities are classified and accounted for, depending on
management’s intent, as follows: (1) trading securities, which are held for the purpose of earning capital gains in near term arereported at fair value, and the related unrealized gains and losses are included in earnings, (2) held‍‑‍to‍‑‍maturity debt securities, forwhich there is the positive intent and ability to hold to maturity are reported at amortized cost and (3) available‍‑‍for‍‑‍sale securities,
which are not classified as either of the aforementioned securities, are reported at fair value, with unrealized gains and losses, netof applicable taxes, reported in a separate component of equity. The Group had no trading securities at March 31, 2012 and 2011.
Non‍‑‍marketable available‍‑‍for‍‑‍sale securities are stated at cost determined by the moving‍‑‍average method.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to income.
g. Property, Plant and Equipment— Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment
excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantially by the decliningbalance method, while the straight‍‑‍line method is applied to buildings acquired after April 1, 1998. Depreciation of leased assets iscomputed on the straight‍‑‍line method over the lease period with no residual value carried.
The depreciation of property, plant and equipment of foreign consolidated subsidiaries is computed on the straight‍‑‍line method
over the estimated useful lives of the assets. The range of useful lives is principally as follows:
Buildings and structures

7–60 years

Vehicles

2– 7 years

Machinery and equipment

2–20 years

Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.
h. Long‍‑Lived Assets— The Group reviews its long‍‑‍lived assets for impairment whenever events or changes in circumstance indicate
the carrying amount of an asset or asset group may not be recoverable. An impairment loss would be recognized if the carrying

Annual Report 201251

amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continued
use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at disposition.
i. Other Assets— Amortization of intangible assets is computed on the straight‍‑‍line method.
Depreciation of leased assets is computed on the straight‍‑‍line method over the lease period with no residual value carried.
j. Retirement and Pension Plan— The Company and substantially all domestic consolidated subsidiaries have a contributory trusteed pension plan and an unfunded retirement benefit plan. In addition, a defined contribution retirement plan was introduced alongwith these defined benefit pension plans.
A domestic consolidated subsidiary participates in a cooperative welfare pension fund as a substitute for the aforementioned
contributory trusteed pension plan, while the foreign subsidiaries have defined contribution retirement plans.
Directors and corporate auditors are not covered by the retirement and pension plans described above.
k. Retirement Allowances for Directors and Corporate Auditors— Retirement allowances for directors and corporate auditors forcertain subsidiaries are recorded to reflect the liability at the amount that would be required if all directors and corporate auditors
retired at each balance sheet date.
l. Asset Retirement Obligations— In March 2008, the ASBJ issued ASBJ Statement No. 18, “Accounting Standard for Asset Retirement Obligations” and ASBJ Guidance No. 21, “Guidance on Accounting Standard for Asset Retirement Obligations.” Under thisaccounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law or contract that resultsfrom the acquisition, construction, development and normal operation of a tangible fixed asset and is associated with the retirementof such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset retirement
and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability should be recognized when a reasonable estimate of asset retirement obligation can be made. Upon initial recognition of a liability for an asset
retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over the remaining
useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to the timing or
the amount of the original estimate of undiscounted cash flows are reflected as an increase or a decrease in the carrying amount of
the liability and the capitalized amount of the related asset retirement cost.
m. Leases— For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations in thebalance sheet.
For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized as leasereceivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee are recognized as
investments in lease.
n. Income Taxes— The provision for income taxes is computed based on the pretax income included in the consolidated statementof income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted tax laws to the temporary differences.

52

Yamato Holdings Co., LTD.

o. Appropriations of Retained Earnings— Appropriations of retained earnings at each year-end are reflected in the consolidated
financial statements for the following year upon shareholders’ approval.
p. Foreign Currency Transactions— All short‍‑‍term and long‍‑‍term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date.
q. Derivative Financial Instruments— Certain consolidated subsidiaries use derivative financial instruments to manage their exposures to fluctuations in interest rates. Interest rate swaps are utilized by the consolidated subsidiaries to reduce interest rate risks.
The consolidated subsidiaries do not enter into derivatives for trading or speculative purposes.
The interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market
value but the differential paid or received under the swap agreements are recognized and included in interest expense or income.
r. Foreign Currency Financial Statements— The balance sheet accounts of the consolidated foreign subsidiaries are translated into
Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate.
Differences arising from such translation are shown as “Foreign currency translation adjustments” under accumulated other comprehensive income in a separate component of equity.
Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange
rates as of the balance sheet date.
s. Per Share Information— Basic net income per share is computed by dividing net income available to common shareholders, by theweighted‍‑‍average number of common shares outstanding for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into common
stock. Diluted net income per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the
beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full
exercise of outstanding warrants.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicable to therespective years including dividends to be paid after the end of the year.
t. Accounting Changes and Error Corrections— In December 2009, the ASBJ issued ASBJ Statement No. 24, “Accounting Standard
for Accounting Changes and Error Corrections” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for Accounting
Changes and Error Corrections.” Accounting treatments under this standard and guidance are as follows:(1) Changes in Accounting Policies—When a new accounting policy is applied with revision of accounting standards, the newpolicy is applied retrospectively unless the revised accounting standards include specific transitional provisions. When the revised
accounting standards include specific transitional provisions, an entity shall comply with the specific transitional provisions.
(2) Changes in Presentations—When the presentation of financial statements is changed, prior-period financial statements arereclassified in accordance with the new presentation. (3) Changes in Accounting Estimates—A change in an accounting estimate isaccounted for in the period of the change if the change affects that period only, and is accounted for prospectively if the change
affects both the period of the change and future periods. (4) Corrections of Prior-Period Errors—When an error in prior-period financial statements is discovered, those statements are restated.
This accounting standard and the guidance are applicable to accounting changes and corrections of prior-period errors which are
made from the beginning of the fiscal year that begins on or after April 1, 2011.
u. New Accounting Pronouncements
Auditing Treatment concerning Depreciation— In February 2012, Japanese Institute of Certified Public Accountants issued Revisionof Auditing and Assurance Practice Committee Statement No. 81, “Auditing Treatment concerning Depreciation” in accordance with

Annual Report 201253

the new tax laws enacted in Japan in December 2011 which changed the depreciation rate used for declining-balance method.
Under this revision, changes in the depreciation rate in line with the new tax laws are accounted for as a change in an accounting
policy based on a justified reason, which is equivalent to the changes in accordance with revisions of laws and other regulations.
This revision will be applied to the Company and its domestic consolidated subsidiaries from the beginning of the fiscal year thatbegins on or after April 1, 2012.
By applying the revision, the depreciation rate for the assets acquired on or after April 1, 2012 will be changed from 250% to200%, which will possibly have an effect on the consolidated financial statements.

3. NOTES AND ACCOUNTS RECEIVABLE
Sales recorded on the installment basis were 0.3% and 0.4% of operating revenues in 2012 and 2011, respectively.
Annual maturities of notes and accounts receivable—installment at March 31, 2012 and related amortization of deferred profit
on installment sales are as follows:
Millions of Yen

2013
2014
2015
2016
2017
2018 and thereafter
Total

Thousands of U.S. Dollars

Receivables

Deferred Profit
on Installment
Sales

Receivables

Deferred Profit
on Installment
Sales¥19,886
8,548
4,181
1,807
774
343
¥35,539¥2,345
1,331
705
330
155
94
¥4,960$241,951
104,003
50,86521,9839,421
4,178$432,401$28,528
16,191
8,578
4,021
1,881
1,147
$60,346

4. INVENTORIESInventories at March 31, 2012 and 2011 consisted of the following:

Millions of Yen

MerchandiseWork in process
Raw materials and supplies
Total

Thousands of
U.S. Dollars

2012

2011

2012

¥  77087
2,488¥3,345¥  804173
1,736¥2,713$ 9,374
1,059
30,266$40,699

5. MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2012 and 2011 consisted of the following:

Millions of Yen

Non-current:
Marketable equity securities
Non-marketable equity securities
Other
Total

54

Yamato Holdings Co., LTD.

Thousands of
U.S. Dollars

2012

2011

2012

¥17,504
1,140
105¥18,749¥17,060
1,736
114¥18,910$212,973
13,8701,277$228,120

Information regarding each category of the securities classified as available‍‑‍for‍‑‍sale at March 31, 2012 and 2011 was as follows:
Millions of Yen
2012

Securities classified as:
Available-for-sale: Equity securities

Cost

Unrealized
Gains

Unrealized
Losses¥13,421¥4,282¥199

Fair Value¥17,504

Millions of Yen
2011

Securities classified as:
Available-for-sale: Equity securities

Cost

Unrealized
Gains

Unrealized
Losses¥14,800¥2,882¥622

Fair Value¥17,060

Thousands of U.S. Dollars
2012

Securities classified as:
Available-for-sale: Equity securities

Cost

Unrealized
Gains

Unrealized
LossesFair Value$163,293$52,106$2,426$212,973

The information for available-for-sale securities which were sold during the years ended March 31, 2012 and 2011 was as follows:
Millions of Yen
March 31, 2012

Available-for-sale:
Equity securities
Other
Total

Proceeds

Realized
Gains

Realized
Losses

¥–
9
¥9

¥–

¥–

¥–

¥–

¥1

¥–

¥–

¥1

¥–

¥–

March 31, 2011

Available-for-sale:
Equity securities
Other
Total

Thousands of U.S. Dollars
March 31, 2012

Available-for-sale:
Equity securities
Other
Total

Proceeds

$  –
106
$106

Realized
Gains

Realized
Losses

$–

$–

$–

$–

The impairment losses on available-for-sale equity securities for the years ended March 31, 2012 and 2011 were ¥1,982 million($24,112 thousand) and ¥85 million, respectively.

Annual Report 201255

6. BANK LOANS AND LONG‍‑‍TERM DEBT
Short‍‑‍term bank loans at March 31, 2012 and 2011 consisted of notes to banks and bank overdrafts. The weighted-average interest
rates applicable to the bank loans as of March 31, 2012 and 2011 were approximately 1.365% and 0.792%, respectively.
Long‍‑‍term debt at March 31, 2012 and 2011 consisted of the following:

Millions of Yen
2012

0.200% to 2.000% loans from a Japanese banks due 2012 to 2016
0.200% to 2.000% loans from a Japanese banks due 2011 to 2015
Lease obligations
Zero coupon convertible bonds due in March 2016
Total
Less current portion
Total

2011

¥ 52,981
14,54020,00087,521(17,082)¥ 70,439

Thousands of
U.S. Dollars
2012$  644,616¥ 56,139
16,60420,00092,743(18,305)¥ 74,438

176,897
243,339
1,064,852(207,829)$  857,023

Millions of Yen

Thousands of
U.S. Dollars¥17,082
18,44020,78530,923282
9¥87,521$ 207,829
224,354
252,886
376,2403,434
109$1,064,852

Annual maturities of long‍‑‍term debt at March 31, 2012 were as follows:Year Ending March 31

2013
2014
2015
2016
2017
2018 and thereafter
Total

The conversion price of the convertible bonds due in March 2016 was ¥1,850 per share at March 31, 2012. If all the outstanding convertible bonds had been exercised at March 31, 2012, 10,811 thousand shares of common stock would have been issued.
The conversion price of the convertible bonds is subject to adjustments to reflect stock splits and certain other events. Eachstock acquisition right may be exercised at any time during the period from March 22, 2011 to February 22, 2016.

7. RETIREMENT AND PENSION PLANS
The Group has severance payment plans for employees.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on therate of pay at the time of termination, years of service and certain other factors. Such retirement benefits are made in the form of alump‍‑‍sum severance payment from the Company or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory retirement age, by death, or byvoluntary retirement at certain specific ages prior to the mandatory retirement age. The retirement benefits for directors and corporate auditors which are paid subject to the approval of the shareholders are not included in aforementioned plans.

56

Yamato Holdings Co., LTD.

The liability for employees’ retirement benefits at March 31, 2012 and 2011 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Prepaid pension cost
Net liability

2012

2011

2012

¥ 97,901(58,359)(8,027)218¥ 31,733¥ 90,394(57,873)(4,379)329¥ 28,471$1,191,151(710,048)(97,656)
2,653$  386,100

The components of net periodic benefit costs for the years ended March 31, 2012 and 2011 are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Service cost
Interest cost
Recognized actuarial loss (gain)
Amortization of prior service cost
Net periodic benefit costs

2012

2011

2012

¥5,453
1,786
2,006¥ 5,257
1,728(1,268)556¥ 6,273$ 66,346
21,72824,413

2012

2011

2.0%
0.0%
1 year
5 years2.0%
0.0%
1 year
5 years¥9,245$112,487

Assumptions used for the years ended March 31, 2012 and 2011 are set forth as follows:

Discount rate
Expected rate of return on plan assets
Amortization period of prior service cost
Recognition period of actuarial gain/loss

8. ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2012 and 2011 were as follows:

Millions of Yen

Balance at beginning of year
Additional provisions associated with the acquisition of property, plant and equipment
Reconciliation associated with passage of time
Reduction associated with settlement of asset retirement obligations
OthersBalance at end of year

Thousands of
U.S. Dollars

2012

2011

2012

¥3,831
185
80
(36)
(1)
¥4,059¥3,64998
77(1)
8¥3,831$46,609
2,248
973
(441)
(4)
$49,385

Annual Report 201257

9. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the Companies
Act that affect financial and accounting matters are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year‍‑‍end dividend upon
resolution at the shareholders meeting. For companies that meet certain criteria such as (1) having the Board of Directors,(2) having independent auditors, (3) having the Board of Corporate Auditors, and (4) the term of service of the directors is prescribedas one year rather than two years of normal term by its articles of incorporation, the Board of Directors may declare dividends(except for dividends in kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. The
Company meets all the above criteria.
The Companies Act permits companies to distribute dividends‍‑‍in‍‑‍kind (non‍‑‍cash assets) to shareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net
assets after dividends must be maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component ofretained earnings) or as additional paid‍‑‍in capital (a component of capital surplus) depending on the equity account charged upon thepayment of such dividends until the aggregate amount of legal reserve and additional paid‍‑‍in capital equals 25% of the common
stock. Under the Companies Act, the total amount of additional paid‍‑‍in capital and legal reserve may be reversed without limitation.
The Companies Act also provides that common stock, legal reserve, additional paid‍‑‍in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain conditions upon resolution of the shareholders.
c. Treasury Stock
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of theBoard of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders
which is determined by specific formula. The Companies Act also provides that companies can purchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity.

58

Yamato Holdings Co., LTD.

10. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in a normal effective statutory tax rate of approximately 40% for the years ended March 31, 2012 and 2011.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31, 2012 and2011 were as follows:

Millions of Yen

Thousands of
U.S. Dollars

2012

2011

2012

¥ 11,156
1,628
394
1,696
3,037
(466)
¥ 17,445¥ 11,875
1,903
766
1,773
2,285
¥ 18,602$ 135,737
19,808
4,795
20,63436,953(5,673)$ 212,254¥ 11,301
1,702
39
24,219
3,715
546
1,522
9,522
(32,853)¥ 19,713¥ 11,285
1,585
44
27,181
4,102
615
1,415
8,500
(35,390)¥ 19,337$ 137,501
20,709473
294,662
45,202
6,646
18,516
115,856(399,723)$ 239,842

Deferred tax liabilities:
Current—other
Deferred tax liabilities—current¥   367¥   367¥   417¥   417$   4,464$   4,464

Non-current:
Unrealized gain on available-for-sale securities
Other
Deferred tax liabilities—non-current
Deferred tax assets—net¥  1,027
1,758¥  2,785¥ 34,006¥   7412,105¥  2,846¥ 34,676$  12,497
21,396$  33,893$ 413,739

Deferred tax assets:
Current:
Accrued expenses
Enterprise tax
Allowance for doubtful accounts
Legal welfare expense
Other
Less valuation allowance
Deferred tax assets—current
Non-current:
Liability for employees’ retirement benefits
Investment securities
Investment in and advances to nonconsolidated subsidiaries and affiliates
Loss on devaluation of land
Loss on impairment of long-lived assets
Loss on devaluation of telephone subscription rights
Unrealized profit
Other
Less valuation allowance
Deferred tax assets—non-current

Annual Report 201259

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statement of income for the year ended March 31, 2012 with the corresponding figures for 2011 is as follows:

Normal effective statutory tax rate
Per capita levy of local taxes
Valuation allowance
Downward revision to deferred tax assets as of end of the period due to the change in corporate tax rate
Other—net
Actual effective tax rate

2012

2011

40.0%
5.9
3.5
6.3
1.2
56.9%

40.0%
4.4
0.7
1.0
46.1%

On December 2, 2011, new tax reform laws were enacted in Japan, which changed the normal effective statutory tax rate from
40.0% to 38.0%, effective for the fiscal years beginning on or after April 1, 2012 through March 31, 2015, and to 35.6% afterwards.
The effects of the reforms were to decrease deferred taxes in the consolidated balance sheet as of March 31, 2012 by ¥3,013
million ($36,659 thousand), of which ¥2,709 million ($32,960 thousand) is the effect of the change in tax rates, and to increase
income taxes—deferred in the consolidated statement of income for the year then ended by ¥3,205 million ($38,995 thousand), of
which ¥2,901 million ($35,296 thousand) is the effect of the change in tax rates.

11. LEASES(1) Lessee
The Group leases certain machinery, computer equipment and other assets.
Future rental income payable under noncancelable operating leases at March 31, 2012 and 2011 was as follows:

Millions of Yen

Due within one year
Due after one year
Total

Thousands of
U.S. Dollars

2012

2011

2012

¥  503497¥1,000¥  469908¥1,377$ 6,119
6,051$12,170(2) Lessor
The net investments in lease as of March 31, 2012 and 2011 are summarized as follows:

Millions of Yen

Gross lease receivables
Unguaranteed residual values
Unearned interest income
Investments in lease, current

60

Yamato Holdings Co., LTD.

Thousands of
U.S. Dollars

2012

2011

2012

¥19,860
1,488(2,423)¥18,925¥18,925
1,329(2,748)¥17,506$241,635
18,101(29,481)$230,255

Maturities of lease receivables for finance leases that are deemed not to transfer ownership of the leased property to the lessee
as of March 31, 2012 are as follows:Year Ending March 31

2013
2014
2015
2016
2017
2018 and thereafter
Total

Millions of Yen

Thousands of
U.S. Dollars¥ 7,057
5,238
3,975
2,550
963
77
¥19,860$ 85,861
63,72848,36031,02911,721936$241,635

The minimum rental commitments under noncancelable operating leases at March 31, 2012 and 2011 are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Due within one year
Due after one year
Total

2012

2011

2012

¥  966
2,245¥3,211¥  4691,261¥1,730$11,751
27,319$39,070

12. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt including bank loans and bonds, in order to expand its business basedon its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets. Derivatives are used,
not for speculative purposes, but to manage exposure to interest fluctuation risk. Certain consolidated subsidiaries conduct leasing
or installment sales operations.
(2) Nature and Extent of Risks Arising from Financial Instruments and the Risk Management for Financial Instruments
Receivables such as notes and accounts receivable and installment sales receivable are exposed to customer credit risk.
Therefore, the Group maintains customer’s credit risk by monitoring collections and accrued receivable at due dates.
Marketable and investment securities are mainly equity securities of the companies that have business relationships or capitalalliances. Such securities are exposed to the risk of market price fluctuations.
Most payment terms of payables such as notes and accounts payable are less than one year.
Short-term bank loans are related to a financial business, and long-term bank loans are used for expanding its business andnetwork. Although a portion of such bank loans are exposed to market risks from changes in variable interest rates, those risks are
mitigated by using derivatives of interest rate swaps. In addition, such interest rate swaps are contracted in accordance with theinternal rule which prescribe the authority over derivative transactions.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as fund settlement,
bookkeeping, monitoring of the balances outstanding, and managing cash flows.
(3) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If a quoted price is not available, other rational
valuation techniques are used instead. According to the techniques used, the value could be different.

Annual Report 201261

Fair values of financial instruments at March 31, 2012 and 2011 were as follows:
Millions of Yen
March 31, 2012

Cash and cash equivalents
Trade notes and accounts receivable
Allowance for doubtful accounts
Installment sales receivable
Allowance for doubtful accounts
Deferred profit on installment sales
Investment securities
Notes and accounts payable
Short-term loans
Long-term loans
Derivatives

Carrying Amount

Fair Value¥209,179
158,175(79)
158,096
35,539(1,561)(4,960)29,01817,504
129,454
17,39040,850¥209,179¥209,178
142,096(142)
141,954
41,151(2,725)(6,363)32,063
17,060113,699
21,63943,131¥209,178

Difference

158,675¥  57933,68817,504
129,454
17,39640,882

4,670

6
32

March 31, 2011

Cash and cash equivalents
Trade notes and accounts receivable
Allowance for doubtful accounts
Installment sales receivable
Allowance for doubtful accounts
Deferred profit on installment sales
Investment securities
Notes and accounts payable
Short-term loans
Long-term loans
Derivatives

142,577¥  62337,95817,060113,699
21,71943,454

5,895

80
323

Thousands of U.S. Dollars
March 31, 2012

Carrying Amount

Fair Value

Cash and cash equivalents
Trade notes and accounts receivable
Allowance for doubtful accounts$2,545,067
1,924,502(961)
1,923,541
432,401(18,991)(60,346)
353,064
212,973
1,575,060
211,588497,019$2,545,067

Installment sales receivable
Allowance for doubtful accounts
Deferred profit on installment sales
Investment securities
Notes and accounts payable
Short-term loans
Long-term loans
Derivatives

62

Yamato Holdings Co., LTD.

Difference

1,930,583$ 7,042

409,881
212,973
1,575,060
211,660
497,41456,81772
395

Cash and cash equivalents
The carrying values of cash and cash equivalents approximate fair value because of their short maturities.
Trade notes and accounts receivable
The fair values of receivables are measured at the amount to be received at maturity discounted at the Group’s assumed corporate
discount rate. A portion of these receivables is determined by discounting the cash flows related to the receivables at the rate ofgovernment bonds.
Installment sales receivable
Allowance for doubtful accounts and deferred profit on installment sales are deducted from the fair values of installment salesreceivable which are determined by discounting the cash flows related to the installment sales receivable at the market interest rate.
Marketable and investment securities
The fair values of marketable and investment securities are measured at the quoted market price of the stock exchange for theequity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. The information of
the fair value for the marketable and investment securities by classification is included in Note 5.
Notes and accounts payable
The fair values of payables, all of which are substantially paid within one year, are measured at the amount to be paid.
Short-term loans and long-term loans
The fair values of short-term bank loans and long-term loans are determined by discounting the cash flows related to the debt at theGroup’s assumed corporate borrowing rate.
Current portion of long-term bank loans are included in short-term loans in the above table in addition to short-term bank loanson the consolidated balance sheet. Lease payments are not included in long-term loans in the above table.
Derivatives
The information of the fair value for derivatives is included in Note 13.
(4) Financial Instruments Whose Fair Value Cannot Be Reliably Determined

Millions of Yen

Investments in equity instruments that do not have a quoted market pricein an active market

Thousands of
U.S. Dollars

2012

2011

2012

¥4,465¥5,849$54,320

Annual Report 201263

(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen

March 31, 2012

Cash and cash equivalents
Trade notes and accounts receivable
Installment sales receivable
Total

Due in One Yearor Less

Due after
One Year throughFive Years¥209,179
151,663
19,886¥380,728¥ 6,463
15,310¥21,773

¥ 49
343
¥392

¥209,178
136,018
23,429¥368,625¥ 6,004
17,480¥23,484

¥ 74
242
¥316

Due after
Five Years

March 31, 2011

Cash and cash equivalents
Trade notes and accounts receivable
Installment sales receivable
Total

Thousands of U.S. Dollars

March 31, 2012

Due in One Yearor Less

Due after
One Year throughFive Years

Cash and cash equivalents
Trade notes and accounts receivable
Installment sales receivable
Total$2,545,067
1,845,278
241,952$4,632,297$ 78,634
186,271$264,905

Due after
Five Years$  5904,178$4,768

Please see Note 6 for annual maturities of long-term debt.

13. DERIVATIVES
Certain consolidated subsidiaries use derivative financial instruments to manage their exposures to fluctuations in interest rates.
Interest rate swaps are utilized by the consolidated subsidiaries to reduce interest rate risks. The consolidated subsidiaries do notenter into derivatives for trading or speculative purposes.
The interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market
value but the differential paid or received under the swap agreements are recognized and included in interest expense or income.
Derivative Transactions to Which Hedge Accounting Is Applied
Millions of Yen
Contract
Amount Dueafter One Year

Fair Value

March 31, 2012

Hedged Item

Contract
AmountInterest rate swaps(fixed rate payment, floating rate receipt)

Long-term bank loans¥49,074¥37,550*

Long-term bank loans¥47,848¥40,524*

March 31, 2011

Interest rate swaps(fixed rate payment, floating rate receipt)

64

Yamato Holdings Co., LTD.

Thousands of U.S. Dollars

March 31, 2012

Hedged Item

Interest rate swaps(fixed rate payment, floating rate receipt)

Long-term bank loans

Contract
AmountContract
Amount Dueafter One Year

Fair Value$597,080$456,868**The information of the fair value of interest rate swaps is included in that of hedged items (see Note 12).

14. COMPREHENSIVE INCOME
Each component of other comprehensive income for the years ended March 31, 2012 and 2011 was the following:Thousands of
U.S. Dollars

Millions of Yen

Unrealized gain (loss) on available-for-sale securities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Foreign currency translation adjustments:
Adjustments arising during the year
Total other comprehensive income

2012

2011

2012

¥  428
1,390
1,818
(304)
¥1,514¥(2,498)
86(2,412)655¥(1,757)$ 5,214
16,911
22,125(3,701)$18,424¥ (433)¥1,081¥  (768)¥(2,525)$ (5,275)$13,149

15. NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share (“EPS”) for the years ended March 31, 2012 and2011 is as follows:Year Ended March 31, 2012

Basic EPS—Net income available to common shareholders
Effect of dilutive securities—Convertible bonds
Diluted EPS—Net income for computation

Millions of Yen

Thousands ofSharesNet Income

Weightedaverage Shares¥19,787¥19,787

Yen

U.S. Dollars
EPS

430,181
10,811
440,992¥46.00$0.56¥44.87$0.55

452,306
711
453,017¥73.42

Year Ended March 31, 2011

Basic EPS—Net income available to common shareholders
Effect of dilutive securities—Convertible bonds
Diluted EPS—Net income for computation¥33,208¥33,208¥73.3016. SEGMENT INFORMATION(1) Description of Reportable Segments
The Group identifies operating segments as units of segment reporting for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors, in order to make decisions about resources to be allocatedto the segment and assess its performance.
The Company, as a pure holding company, forms six business formations classified according to each business contents andmanages based on these business formations. The Group categorizes as the six reporting segments, “Delivery,” “BIZ‍‑‍Logistics,”“Home Convenience,” “e‍‑‍Business,” “Financial” and “Truck Maintenance” based on the above policy.

Annual Report 2012

65

The Group defines the reporting segments as follows:
Delivery:	Small‍‑‍parcel delivery services such as TA-Q-BIN (door‍‑‍to‍‑‍door parcel delivery) and Kuroneko Mail (posting
service)
BIZ‍‑‍Logistics:	Intercompany logistics services, aimed at the B2B supply‍‑‍chain management market
Home Convenience:	Lifestyle support services intimately connected with the needs of local markets, such as moving and household effects delivery servicese‍‑‍Business:	Information services targeted at the business market, including ASP services and the development of information systems
Financial:	Financial services targeted at business customers and consumers, such as settlement and collection
Truck Maintenance:	Vehicle maintenance services and fuel supply targeted at transport companies(2) Methods of Measurement for the Amounts of Segment Revenues, Segment Income (Loss), Segment Assets and Other Items
for Each Reportable Segment
The accounting policies of each reportable segment are consistent to those disclosed in Note 2, “Summary of Significant Accounting
Policies.”(3) Information about Segment Revenues, Segment Income (Loss), Segment Assets and Other Items
Millions of Yen
2012

Segment revenues:
Segment revenues from
customers
Intersegment revenues
Total segment revenues
Segment income (loss)
Segment assets
Other:
Depreciation and amortization
Increase of tangible and intangible fixed assets

Home
Convenience

Delivery

BIZ-Logistics¥1,014,564
54,096¥1,068,660¥   40,965
558,494¥82,479
11,827¥94,306¥ 3,663
50,52029,4061,534

756

35,654

1,386

595

Financial

Truck
Maintenance

Other

Total

Reconciliation

Consolidated¥ 54,115
4,171¥ 58,286¥  9,938
174,683¥21,188
26,896¥48,084¥ 2,514
21,635¥ 5,268
44,604¥49,872¥11,877
10,948¥1,260,833
182,245¥1,443,078¥        75,616
872,626¥        –(182,245)¥(182,245)¥     (8,965)
46,669¥1,260,833¥1,260,833¥   66,651
919,295

3,691

1,932

931

366

38,61666

38,682

3,353

3,609

1,208

147

45,952

2,663

48,615e-Business¥47,715 ¥35,504
14,157
26,494¥61,872 ¥61,998¥    (44) ¥ 6,703
19,79636,550Millions of Yen
2011

Segment revenues:
Segment revenues from
customers
Intersegment revenues
Total segment revenues
Segment income (loss)
Segment assets
Other:
Depreciation and amortization
Increase of tangible and intangible fixed assets

66

Yamato Holdings Co., LTD.

Home
Convenience

Delivery

BIZ-Logistics¥  995,651
51,350¥1,047,001¥   40,578
547,646¥82,008
11,619¥93,627¥ 3,664
48,61330,453

1,564

829

39,571

1,395

663

Financial

Truck
Maintenance

Other

Total

Reconciliation

Consolidated¥52,393
4,411¥56,804¥ 9,938
167,746¥19,696
25,367¥45,063¥ 2,134
19,955¥ 4,976
51,310¥56,286¥19,863
10,155¥1,236,520
182,275¥1,418,795¥   82,269
848,976¥      –
(182,275)¥(182,275)¥ (17,955)
50,387¥1,236,520

3,489

1,514

958

746

39,55330

39,583

7,083

2,760

371

399

52,242

230

52,472e-Business¥48,997 ¥32,799
14,25023,968¥63,247 ¥56,767¥  (618) ¥ 6,710
19,887
34,974¥1,236,520¥   64,314
899,363

Thousands of U.S. Dollars
2012
DeliverySegment revenues:
Segment revenues from
customers
Intersegment revenues
Total segment revenues
Segment income (loss)
Segment assets
Other:
Depreciation and amortization
Increase of tangible and intangible fixed assets

BIZ-Logistics

Home
Convenience

e-Business

Truck
Maintenance

Financial

Other

Total

Reconciliation$12,344,133 $1,003,510 $580,546 $431,977 $   658,410 $257,798 $ 64,092 $15,340,466
658,180
143,902 172,243 322,353
50,747 327,243 542,698
2,217,366$13,002,313 $1,147,412 $752,789 $754,330 $   709,157 $585,041 $606,790 $17,557,832$   498,414 $   44,567 $     (535) $ 81,558 $   120,922 $ 30,585 $144,504 $   920,015
6,795,162
614,670 240,862 444,695 2,125,354 263,238 133,198 10,617,179

Consolidated$         – $15,340,466(2,217,366)$(2,217,366) $15,340,466$  (109,078) $   810,937
567,816 11,184,995

357,782

18,6679,201

44,901

23,50911,331

4,452

469,843803

470,646

433,798

16,8597,235

40,802

43,914

14,700

1,789

559,097

32,394591,491

Notes: “Other” includes JITBOX charter services, staffing services and shared services.
	Segment revenues and segment income of “Other” include dividends for the years ended March 31, 2012 and 2011 by ¥10,219 million ($124,331 thousand) and ¥18,713 million, respectively, which the Company received from its subsidiaries and affiliates as a pure holding company.
Reconciliations are as follows:(1) Reconciliations of segment income at March 31, 2012 and 2011, by ¥8,965 million ($109,078 thousand) and ¥17,955 million, respectively, areintersegment eliminations.
(2) Reconciliations of segment assets at March 31, 2012 and 2011, by ¥46,669 million ($567,816 thousand) and ¥50,387 million, respectively,
includes intersegment eliminations by ¥119,764 million ($1,457,156 thousand) and ¥114,765 million, and corporate assets which are not allocatedto each reporting segments by ¥166,433 million ($2,024,972 thousand) and ¥165,152 million, respectively.
(3) Reconciliations of increase of tangible and intangible fixed assets at March 31, 2012 and 2011 by ¥2,663 million ($32,394 thousand) and ¥230
million, respectively, are the Company’s capital investment.
Segment income is reconciled with the consolidated statements of income.

[Related Information about Reporting Segments](1) Information about products and services
Operating revenues from customers for the years ended March 31, 2012 and 2011 are as follows:
Millions of Yen
2012

2011

TA-Q-BIN

Kuroneko Mail

Other

Total

TA-Q-BIN

Kuroneko Mail

Other

Total

¥811,906¥129,870¥319,057¥1,260,833¥782,121¥141,145¥313,254¥1,236,520

Thousands of U.S. Dollars
2012
TA-Q-BIN

Kuroneko Mail

$9,878,406$1,580,123

Other

Total

$3,881,937 $15,340,466

Annual Report 201267

(2) Information about geographical areas
Operating revenues for the years ended March 31, 2012 and 2011 are as follows:
Millions of Yen
2012
Japan

¥1,242,311

North America

2011
Other

¥8,264¥10,258

Total

Japan

¥1,260,833¥1,218,149

North America

Other¥8,139¥10,232

Total¥1,236,520

Thousands of U.S. Dollars
2012
Japan

North America$15,115,110$100,553

Other

Total

$124,803 $15,340,466

Property, plant and equipment at the years ended March 31, 2012 and 2011 are as follows:
Millions of Yen
2012
Japan

¥373,322

North America

2011
Other

¥204

¥1,654

Total

Japan

¥375,180¥ 366,661

North America

Other

¥210

¥1,284

Total¥368,155

Thousands of U.S. Dollars
2012
Japan

$4,542,184

North America$2,481

Other

Total

$20,119$4,564,784(3) Information about amortization and amounts of goodwill by reporting segments
Amortization and balance of goodwill by reporting segments at the years ended March 31, 2012 and 2011 are as follows:
Millions of Yen
2012
DeliveryAmortization of goodwill
Amounts of goodwill

¥ 91
273

BIZHome
Logistics Convenience e-Business

Financial

Truck
Maintenance

Other

¥104
312

Total

¥195
585

Eliminations or
Corporate
Consolidated

¥195
585

Millions of yen
2011
DeliveryAmortization of goodwill
Amounts of goodwill

¥ 91
363

BIZHome
Logistics Convenience e-Business

Financial

Truck
Maintenance

Other

¥104
416

Total

¥195
779

Eliminations or
Corporate
Consolidated

¥195
779

Thousands of U.S. Dollars
2012
DeliveryAmortization of goodwill
Amounts of goodwill

68

Yamato Holdings Co., LTD.

$1,105
3,317

BIZHome
Logistics Convenience e-Business$1,266
3,797

Financial

Truck
Maintenance

Other

Total

$2,371
7,114

Eliminations or
Corporate
Consolidated$2,371
7,114

17. SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2012 was approved at the Company’s Board of Directors meeting heldon May 15, 2012:

Year-end cash dividends, ¥11.00 ($0.13) per share

Millions of Yen

Thousands of
U.S. Dollars¥4,732$57,569

Annual Report 201269

INDEPENDENT AUDITOR’S REPORTTo the Board of Directors of
Yamato Holdings Co., Ltd.:We have audited the accompanying consolidated balance sheet of Yamato Holdings Co., Ltd. and consolidated subsidiaries as of March
31, 2012, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year
then ended, and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in conformity withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable
the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit inconformity with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Yamato Holdings Co., Ltd. and consolidated subsidiaries as of March 31, 2012, and the consolidated results of theiroperations and their cash flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for the convenience ofreaders outside Japan.

June 6, 201270

Yamato Holdings Co., LTD.

Corporate Data
As of March 31, 2012

Principal Shareholders

Head Office
Yamato Holdings Co., Ltd.
16-10, Ginza 2-chome, Chuo-ku, Tokyo
104-8125 Japan
Telephone: (03) 3541-4141
Facsimile: (03) 5565-3427

Percentage of total
shares outstanding

The Master Trust Bank of Japan, Ltd. (Trust Account)

6.31%

Japan Trustee Services Bank, Ltd. (Trust Account)

4.80%

Yamato Employees’ Shareholding Association

4.15%

Mizuho Bank, Ltd.

3.68%

Nippon Life Insurance Company

3.05%

Meiji Yasuda Life Insurance Company

2.62%

Yamato Trading-Partner Shareholding Association

2.46%

State Street Bank and Trust Company 505223

2.30%

SSBT OD05 Omnibus Account Treaty Clients

2.00%

Transfer Agent and Registrar

Sompo Japan Insurance Inc.

1.39%

Mizuho Trust & Banking Co., Ltd.

Total

32.75%

Common Stock
Authorized: 1,787,541,000 shares
Issued: 468,052,892 shares

Stock Exchange Listing
Tokyo Stock Exchange

Annual Meeting
The annual meeting of shareholders isnormally held in June in Tokyo, Japan.

Auditor
Deloitte Touche Tohmatsu LLC

Stock Price Range (Tokyo Stock Exchange)
(Yen)

(Yen)

2,000

16,00014,0001,500
12,0001,000

10,000

8,000
500
6,000

0

09/4

7

10

10/1

4

n Stock Price Range (left scale)

7

10

11/1

Average (left scale)

4

7

10

12/1

4,000

Nikkei Stock Average (right scale)

Annual Report 201271

YAMATO HOLDINGS CO., LTD.

Annual Repor t 2012

Printed in Japan