Translation
April 26, 2019

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

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Yutaka Nagao, President
Atsushi Kashimoto, Senior Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the ordinary general meeting of shareholders: June 25, 2019
Scheduled date of the commencement of dividend payment:
June 4, 2019
Scheduled date of the submission of annual securities report:
June 21, 2019
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Operating revenue

Operating profit

For the year ended Millions of yen% Millions of yen
March 31, 2019
1,625,315
5.6
58,345
March 31, 2018
1,538,813
4.9
35,685(Note) Comprehensive income:For the year ended March 31, 2019:
For the year ended March 31, 2018:
Basic earnings per
share(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Diluted earnings
per share%
Millions of yen
63.5
54,2592.3
36,08526,987 million yen (18.5 %)22,772 million yen ((0.6) %)Return on equity

For the year ended
Yen
Yen
March 31, 2019
65.14—
March 31, 2018
46.24—
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2019:
For the year ended March 31, 2018:

%
50.4
3.4

Millions of yen
25,682
18,231

Ratio of ordinary
profit to total assets

%
4.6
3.3
(4,872) million yen(1,355) million yen

%
4.8
3.2

%
40.9
1.0

Ratio of operating
profit to operating
revenue%
3.6
2.3(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMillions of yen
Millions of yen%
Yen
March 31, 2019
1,123,659
573,38850.4
1,435.15
March 31, 2018
1,114,870
557,586
49.4
1,395.74(Reference) Equity:
As of March 31, 2019: 565,841 million yen
As of March 31, 2018: 550,307 million yen(Note) The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February
16, 2018) effective from the beginning of the fiscal year ended March 31, 2019. The figures presented for the consolidated financial
position for the previous fiscal year reflect amounts that have been adjusted retrospectively to reflect the aforementioned standard, etc.

(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2019
March 31, 20182.

Cash flows frominvesting activities

Millions of yen
118,093
51,728Cash flows fromfinancing activities

Millions of yen(54,872)(41,174)

Millions of yen(70,947)(36,930)

Millions of Yen
194,650
202,863

Dividends
Annual dividendsFirstquarter

Fiscal 2018
Fiscal 2019
Fiscal 2020
(Forecast)3.

Cash and cash equivalents
at end of period

Secondquarter

Third
quarter

Fiscalyear-end

Total

Yen
—
—

Yen
13.00
14.00

Yen
—
—

Yen
14.00
14.00

Yen
27.00
28.00

—

15.00

—

16.00

31.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
10,645
11,039

%
58.4
43.0

%
2.0
2.0

30.6

Consolidated earnings forecasts for fiscal year 2020 (from April 1, 2019 to March 31, 2020)
Operating revenue

Half year
Full year

Millions of yen
807,000
1,695,000

Operating profit
%
2.3
4.3

Millions of yen
12,00072,000Ordinary profit%(48.8)
23.4

Millions of yen
12,00072,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toearnings
owners of parent
per share%(47.3)
32.7

Millions of yen
4,000
40,000%(59.9)
55.7

Yen
10.15
101.45* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2019:
411,339,992 shares
As of March 31, 2018:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2019:17,065,526 shares
As of March 31, 2018:
17,064,197 sharesc. Average number of shares during the period
For the year ended March 31, 2019:394,275,053 shares
For the year ended March 31, 2018:394,276,572 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per share information” onpage 26.

*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that we consider to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For
points to note when using such assumptions and financial projections, please see “1. Overview of Operating Results and Others, (4) Future
outlook” of the attached materials to the financial results report on pages 8 to 9.
• The Company plans to hold a financial results meeting for analysts on May 7, 2019. The materials distributed at this financial results meetingshall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index
1. Overview of Operating Results and Others .............................................................................................................. 2(1) Overview of operating results for the fiscal year ended March 31, 2019 ........................................................... 2(2) Overview of financial position for the fiscal year ended March 31, 2019 ........................................................... 8(3) Overview of cash flows for the fiscal year ended March 31, 2019 ..................................................................... 8(4) Future outlook.................................................................................................................................................... 8(5) Operational and financial issues to be addressed ............................................................................................. 9
2. Fundamental Approach to Selection of Accounting Standards............................................................................... 10
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 11(1) Consolidated balance sheet ............................................................................................................................ 11(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 14(3) Consolidated statement of changes in equity .................................................................................................. 17(4) Consolidated statement of cash flows ............................................................................................................. 19(5) Notes to consolidated financial statements ..................................................................................................... 21(Notes to premise of going concern)................................................................................................................ 21(Significant matters forming the basis of preparing the consolidated financial statements)............................. 21(Changes in presentation method) .................................................................................................................. 21(Segment information, etc.) ............................................................................................................................. 22(Per share information) .................................................................................................................................... 26(Important subsequent matters) ...................................................................................................................... 26
4. Others .................................................................................................................................................................... 27
Operating revenue by business.............................................................................................................................. 27-1-

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

Fiscal year ended
March 31, 2018
1,538,813
35,68536,085

Fiscal year ended
March 31, 2019
1,625,315
58,34554,25918,231

25,682

ChangeGrowth (%)

86,501
22,65918,173

5.6
63.5
50.4

7,450

40.9

As mentioned above, operating revenue amounted to 1,625,315 million yen, up 86,501 million yen from theprevious fiscal year. This is largely attributable to an increase in the TA-Q-BIN unit price, and despite adecrease in TA-Q-BIN delivery volume amid promotion of structural reforms in the Delivery Business. Operating
expenses amounted to 1,566,969 million yen, up 63,841 million yen from the previous fiscal year. This is largely
attributable to an increase in personnel expenses and despite a decrease in commission expenses, mainly as aresult of having increased the workforce looking toward building collection and delivery systems.
As a result, operating profit amounted to 58,345 million yen, up 22,659 million yen from the previous fiscal year.
Meanwhile, based on investigation results into the situation where Yamato Home Convenience Co., Ltd. wasfound to have inappropriately billed employees of corporate clients for moving services, we previously recorded
an estimated effect of the incident amounting to 3,104 million yen. However, the effect of the incident ultimatelyamounted to 2,025 million yen as a result of our having made progress in addressing client issues.
Initiatives for the entire Yamato Groupa.

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

-2-

b.

c.

d.

e.

pursuing our “Value Networking” design, on the basis of creating business models for generating a highlevel of added value through the combined efforts of our respective businesses, while at the same time
contributing to growth strategies and international competitive strengths of the Japanese economy.
Meanwhile, we are also taking steps to forge a robust corporate culture that acts as a foundation forbusiness creation and development.
We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we
worked on enhancing the efficiency and dependability of operations, in part by improving our transportsystems and by using our information technology network to enable visual monitoring of operating
volumes. Moreover, we actively engaged in CSR-related activities linked to Yamato Group businessendeavors, such as through safety and environmental measures, and efforts to prosper communities anddrastic and comprehensive rebuilding of governance across the Group.
To further evolve our “Value Networking” design, we have been crafting business models that deliver ahigh level of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we will make more effective use of our innovative network
platform consisting of the “Haneda Chronogate,” “Okinawa International Logistics Hub,” and respective
gateways linking major cities in the Kanto, Chubu, and Kansai regions, in addition to our existing “last mile”
network.
In our business looking toward global markets, we have been working to forge collaboration among five
regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening our capabilities
in each geographic region to respond to the growth of cross-border logistics. In addition, we have been
actively promoting efforts to build cross-border networks that provide substantial added value by
leveraging our certification under international standards pertaining to small parcel chilled and frozen
goods delivery services, such that has already been acquired by eight Yamato Group companies.
With the aim of improving customer convenience particularly in the e-commerce market, we have been
continuously working to establish an environment that ensures customers ease in picking up their parcels.
To that end we have been actively promoting efforts to build an open-type network of parcel lockers
primarily in train stations, convenience stores and other such locations, and have worked on other efforts
for the development of next-generation logistics services including the utilization of automated driving
technologies. Moreover, we have been taking steps that involve digitization, automation and streamliningof our overall logistics operations in order to address challenges presented by society such as the labor
shortage as it intensifies, and in order to better serve the rapidly expanding e-commerce market. In thefiscal year ended March 31, 2019, we initiated joint trunk-route transportation enlisting multiple companies
using long connected trailers that enable large-volume transport, and gained approval in that regard fromJapan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) under Japan’s Act on Advancementof Integration and Streamlining of Distribution Business.

Summary of each operating segment

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

Fiscal year ended
March 31, 2018
1,836
1,464

Fiscal year ended
March 31, 2019
1,803
1,211

Change(33)(253)

Growth (%)(1.8)(17.3)In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
Amid a severe business environment partially due to tightening of the domestic labor market, which is inaddition to an upward trend with respect to small parcel volume partially due to expansion of the
e-commerce market brought about by rapidly changing styles of consumption, during the fiscal year underreview, continuing on from the previous fiscal year, we promoted our initiatives to rebuild our “last mile”
network that include adequate pricing initiatives and enhancement of collection and delivery systems tolive up to the trust and expectations of customers in order to strike a balance between regaining
profitability and expanding collection and delivery capacity. In addition, we also engaged in efforts geared
to structural reform of trunk-route networks for the purposes of further streamlining transportation and

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c.

d.

e.

f.

optimizing the entire network.
In the still growing e-commerce market, we have been taking steps to expand sales of the “TA-Q-BIN
Compact” and “Nekopos” services which enable customers to send small parcels simply, and proceededwith offering a greater number of drop-off points for sending by collaborating with multiple flea market
websites. During the fiscal year under review, we teamed up with e-commerce companies in offering aservice environment where customers who have purchased a product are able to specify either a businessoffice of Yamato Transport Co., Ltd., a convenience store or an open-type parcel locker (PUDO station) as
a location for pick-up, while also promoting use of our “Kuroneko Members” service for individual
customers. Meanwhile we have also been working in conjunction with flea market websites ande-commerce companies in efforts to provide greater convenience by developing a service environmentthat makes it easier for individual customers to ship merchandise from PUDO station open-type parcel
lockers.
With respect to corporate clients, we have been accurately pinpointing managerial challenges and actively
proposing solutions to address those challenges. Moreover, we have been working to boost profitability bymaking proposals that provide high added value using the Group’s business resources. During the fiscal
year under review, we made efforts to support business of our customers through initiatives that haveincluded promoting membership in the “Yamato Business Members” service for corporate clients, offering
them enhanced features that provide greater convenience.
We have been taking steps to improve services for residents geared toward resolving issues facing
communities. In part, this has involved collaborating with numerous municipalities and companies in efforts
that entail helping those who have difficulties doing their shopping and helping to watch over elderly
residents. Moreover, we have also been helping to revitalize local industry particularly through initiatives
that involve supporting tourism and helping to expand sales channels for locally produced products.
Operating revenue amounted to 1,297,222 million yen, up 7.9% from the previous fiscal year owing to ahigher TA-Q-BIN unit price despite a decrease in TA-Q-BIN delivery volume for the fiscal year underreview as a result of promotion of “structural reforms in the Delivery Business.” Amid increasing expenses
related to our reform initiatives, operating profit amounted to 40,787 million yen, an improvement of 34,030
million yen from the previous fiscal year.

 BIZ-Logistics
a.

b.

c.
d.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
For the e-commerce industry and others, we are offering one-stop services for various types of logisticalsupport services in line with customer needs, including placing and accepting orders, visual monitoring of
inventories for customers and enabling speedier shipments. During the fiscal year under review, we
promoted efforts to increase sales of this service, particularly among our existing customers.
For medical service providers, we have been developing medical device loaner support (storage, cleaningand delivery) and other services that help revolutionize logistics operations. During the fiscal year underreview, use of this service increased particularly among our existing large-lot customers.
Operating revenue amounted to 147,437 million yen, up 1.6% from the previous fiscal year mainly as aresult of our having expanded sales of trading logistics services and maintenance services, and also due
to progress made in providing industry-specific solutions. Operating profit amounted to 3,329 million yen,down 52.8% from the previous fiscal year mainly as a result of having incurred upfront expenses toachieve business growth.

 Home Conveniencea.
b.

In the Home Convenience Business, we have been working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise business that draw on the Yamato Group’s nationwide network.
Operating revenue amounted to 33,404 million yen, down 25.5% from the previous fiscal year. The
decrease was partially a result of having stopped taking new orders with respect to all moving-related
services, including those involving individual customers, resulting from a situation involving inappropriate-4-billing for moving-related services provided to employees of corporate clients. Meanwhile, although we
previously recorded an estimated effect of the incident amounting to 3,104 million yen based oninvestigation results regarding such inappropriate billing, the effect of the incident ultimately amounted to
2,025 million yen as a result of our having made progress in addressing the issues of clients. As for profits,
the segment posted an operating loss of 7,764 million yen partially because of the stop on taking neworders with respect to all moving-related services, and also because of the aforementioned effect of theincidents on profits.

 e-Business
a.

b.

c.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively developing solution platform business that combines logistics technology
and financial technology with information technology. In addition, with the aim of helping to accelerate
growth of Yamato Group businesses, we have been moving beyond conventional information technologies
through efforts geared to promoting use of emerging technologies that harness artificial intelligence (AI),the Internet of things (IoT) and other such innovations.
We have been offering the “Certified Web Retrieval Service” for the financial industry which enables
subscribers to safely and simply submit documentation. The service helps our customers streamline theiradministrative operations by enabling service subscribers to use their smartphones, personal computersand other such devices to upload identification papers and other documents necessary when completing
application processes. During the fiscal year under review, we actively expanded sales of the service tothe banking and insurance industry.
Operating revenue amounted to 26,592 million yen, down 2.6% from the previous fiscal year mainly due toeffects of a decrease in the number of projects involving system processing for customers stemming froma decrease in TA-Q-BIN delivery volume, and despite having increased sales of the “Certified Web
Retrieval Service” and having made progress in capturing more system configuration business as a resultof enhanced sales activities for our existing customers. Operating profit amounted to 8,740 million yen, up
10.0% from the previous fiscal year mainly due to firm results with respect to use of our highly profitable
existing services.

 Financial
a.
b.

c.

d.

In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the fiscal year under review, we have been taking steps toexpand sales of our “Raku-uru Cart” service. This service helps business operators newly enter the
e-commerce market, which is poised for expansion going forward, by providing one-stop support in termsof shopping cart function, payment settlement and delivery services. Moreover, we focused on improving
our service offerings in part by promoting increased sales of our ID-linked “Kuroneko Pay” service thatlinks “Kuroneko Member” information with purchases to promote greater convenience to customers who
use online shopping while also helping e-commerce companies increase their sales.
In the lease services business, we have been working to expand business of financial leases primarily
involving trucks and installment sales. We have also been developing peripheral operations that include
providing vehicle referrals and resale support, while forging ahead in making proposals involving totalsolutions related to vehicles.
Operating revenue amounted to 79,966 million yen, down 3.6% from the previous fiscal year mainly due toa decrease in “TA-Q-BIN Collect” delivery volume largely stemming from a shrinking market for
cash-on-delivery brought about by changing payment settlement needs, and despite increases in the useof our “Kuroneko Web Collect” and “Kuroneko Pay After Delivery Services.” Operating profit was 6,244
million yen, down 21.1% from the previous fiscal year.

-5- Autoworks
a.

b.

c.

In the Autoworks Business, the Yamato Group provides its 24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation, which involves carrying out
periodic maintenance under a membership framework, thereby providing value to logistics operations
providers in the form of “improvement of vehicle maintenance convenience” and “maintenance expense
reduction.” Furthermore, we provide services that help our customers improve their asset utilization ratios,by adding options of “maintaining and safeguarding logistics facilities and equipment, and improving such
workplace environments,” along with “offering insurance plans tailored to customer risk management
needs” which provide coverage for such assets.
In vehicle maintenance services, we have embarked on efforts to handle new areas of business. For
instance, this has involved providing support for reducing workloads of sales drivers and ensuring safe
vehicle operation, carrying out inspections and maintenance of small electric trucks with lower exhaustemissions and large electric buses that are being put to use in tourism destinations, and developing the“Smart Tenko” driver roll call system which enables transportation companies to achieve higher quality
operation management by drawing on data regarding employees and vehicles using Internet of things(IoT) technologies.
Operating revenue amounted to 25,985 million yen, up 5.5% from the previous fiscal year largely as aresult of an increase in the number of vehicles serviced. Operating profit was 4,433 million yen, up 7.1%
from the previous fiscal year mainly due to progress made in streamlining business processes, particularly
in terms of standardizing and enabling visual monitoring of business operations by introducing production
methods of manufacturers.

 Othera.

b.

The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-volume delivery. During the fiscal year under review, service use grew steadily due tofavorable results with respect to existing services.
Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
decreased 1.5% from the previous fiscal year to 2,219 million yen.

CSR Initiatives
a.

b.

c.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. During the fiscal year under review, the entire Yamato Group including its overseas operations
carried out the “Zero Traffic Accidents Campaign,” and Yamato Transport Co., Ltd. held the “8thNationwide Safety Competition” and engaged in efforts to enhance the skills of the Group’s professional
drivers with respect to safe vehicle operation, while also heightening safety awareness and improving
driving skills on a Group-wide basis. In addition, since 1998 we have been holding our “Safety Classes forChildren,” through which we convey the importance of traffic safety, in day care facilities, kindergartensand elementary schools across Japan. A total of about 3.28 million people have now participated.
The Yamato Group works to ensure that its distribution mechanisms are environmentally sound, under its
policy of “Nekology” (combining “Kuroneko” with “ecology”) for promoting its environmental conservation
initiatives. We also hold “Kuroneko Yamato Environmental Class” sessions designed to provide support forenvironmental education of children who will bear responsibilities of the next generation. We have heldsuch classes on an ongoing basis nationwide since 2005, attracting about 240 thousand participants so
far.
Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people can freely
enjoy a lifestyle as a member of the workforce. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment. During the fiscal year under review,

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d.

e.

our special subsidiary Swan Co., Ltd. (Swan), operator of Swan Bakery, entered into a franchise
agreement with a partner company in Vietnam and opened a Swan Cafe & Bakery location in the city of
Ho Chi Minh, Vietnam, which made that establishment Swan’s first franchisee overseas.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” During the fiscal year under review, we havepromoted our “combined passenger-cargo” operations using scheduled-route passenger buses andrailways in 14 prefectures nation-wide, thereby helping to improve lifestyle services for local residents bykeeping scheduled bus and railway networks running in hilly and mountainous areas where populations
are substantially declining and getting older, and also by streamlining distribution in those locations. In
tourism destinations, our efforts that also helped revitalize local communities included our launch ofhands-free travel service drawing on our “combined passenger-cargo” operations, targeting foreign visitors
to Japan. In addition, for residents of suburban housing complexes which are undergoing changes withrespect to people’s life stages, we have been providing support for community development geared toensuring that local residents are able to lead comfortable lives. Our efforts have involved helping torevitalize local communities where we have our business locations, and providing such residents withlifestyle support services that include handling shopping and housekeeping on their behalf. Moreover, wehave been working with government bodies in efforts geared to revitalizing communities and resolving
issues by leveraging the Yamato Group’s management resources with respect to initiatives that include
helping to watch over elderly residents, supporting tourism, and expanding sales channels for locally
produced products in respective regions throughout Japan. We are currently involved in 966 initiatives now
being implemented or otherwise under discussion.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have been promoting management in conformity
with compliance and working on Group-wide initiatives with respect to “reforming working styles” throughdeveloping upbeat working environment which is more “employee-friendly” and “rewarding” for employees,
such as promoting reviewing our management rules on working hours and creating new working styles forour employees.

-7-(2) Overview of financial position for the fiscal year ended March 31, 2019
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) effective from the beginning of the first quarter of the fiscal year ended
March 31, 2019. Accordingly, analysis and comparison of the Group’s financial position against the fiscal year
ended March 31, 2018, has been performed on the basis of figures calculated upon retrospective application ofsuch accounting standard.
Total assets were 1,123,659 million yen as of March 31, 2019, up 8,789 million yen from the end of the previous
fiscal year. The major factor in this was an increase of 23,860 million yen in property, plant and equipment
associated largely with acquisitions of vehicles and the establishment of new business locations in the Delivery
Business, despite decreases of 8,467 million yen in cash and deposits, and 5,827 million yen in investment
securities largely due to having recorded share of loss of entities accounted for using equity method.
Liabilities decreased 7,012 million yen to 550,270 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 46,952 million yen decrease in loans payable primarily in the Financial
Business and a 10,000 million yen decrease in Company-issued bonds which came due for redemption,
despite a 17,144 million yen increase in lease obligations mainly as a result of having concluded new leaseagreements particularly for facilities in the Delivery Business, and an increase of 12,727 million yen in income
taxes payable largely associated with financial performance improvement in the Delivery Business.
Total net assets were 573,388 million yen, up 15,801 million yen from the end of the previous fiscal year. Thiswas mainly attributable to an increase in retained earnings of 14,642 million yen due to the recording of profit
attributable to owners of parent of 25,682 million yen and payment of dividends of surplus of 11,039 million yen.
Accordingly, the equity ratio changed to 50.4% from the previous fiscal year’s 49.4%.
(3) Overview of cash flows for the fiscal year ended March 31, 2019
Net cash provided by operating activities amounted to 118,093 million yen, which is an increase of 66,365
million yen compared with the previous fiscal year. This is largely attributable to an increase of 19,134 million
yen due to the recording of profit before income taxes of 52,258 million yen and an increase of 21,997 million
yen in decrease in notes and accounts receivable - trade.
Net cash used in investing activities was 54,872 million yen. Compared with the previous fiscal year, theamount of net cash used increased by 13,698 million yen. This is largely attributable to an 11,386 million yen
increase in purchase of property, plant and equipment.
Net cash used in financing activities was 70,947 million yen. Compared with the previous fiscal year, theamount of net cash used increased by 34,017 million yen. This is largely attributable to a 23,319 million yen
increase in repayment of loans payable and a 10,000 million yen increase in redemption of bonds.
As a result of the above, cash and cash equivalents were 194,650 million yen as of March 31, 2019, down
8,212 million yen from the end of the previous fiscal year.
(4) Future outlook
Going forward, the economic environment is likely to remain one that is plagued by ongoing uncertainties
ahead due to factors such as effects of political developments overseas, despite the prospect of gradualeconomic recovery holding course amid underlying strengths in corporate earnings. Meanwhile, the severebusiness environment affecting the logistics industry is likely to persist amid factors that include further
tightening of the domestic labor market, amid a continued upward trend with respect to small parcel volume
brought about by rapidly changing styles of consumption and other such trends.
In that environment, Yamato Group will place a management focus on “reforming working styles” and endeavor
to improve and develop the working environment, while promoting its “structural reforms in the Delivery
Business.”
We anticipate an increase in operating revenue for the fiscal year ending March 31, 2020, in comparison withthe fiscal year ended March 31, 2019. In part, this is due to the likelihood of an upturn in TA-Q-BIN delivery-8-

volume in conjunction with expanded collection and delivery capacity as we promote initiatives to rebuild our“last mile” network, and a gradual increase in the TA-Q-BIN unit price along with our ongoing efforts regarding
adequate pricing initiatives. The forecast for higher operating revenue also assumes that we will expand ourrevenue base in the non-delivery businesses, which will involve taking steps to expand our existing service
offerings by enlisting the strengths of Group companies, while also drawing on Group-wide ties in promoting
solution sales geared toward addressing customers’ business challenges. As for expenditures, we will focus oncontrolling outsourcing costs amid the likelihood of rising personnel expenses primarily with respect toemployee salaries incurred in the process of promoting our “reforming working styles” initiatives, and increasing
expenses incurred in promoting labor saving strategies and other forms of operational streamlining. The
consolidated earnings forecasts reflect the effects of the current suspension of moving-related services by ourconsolidated subsidiary Yamato Home Convenience Co., Ltd.
We expect operating revenue will be 1,695.0 billion yen, with operating profit at 72.0 billion yen, ordinary profit
at 72.0 billion yen and profit attributable to owners of parent at 40.0 billion yen.
(5) Operational and financial issues to be addressed
The Yamato Group aims to enhance its management foundations in order to continue achieving sustainablegrowth over the coming century. To such ends, we intend to address the following issues based on our“KAIKAKU 2019 for NEXT100” medium-term management plan looking toward our 100-year anniversary in2019.
a. Our efforts to forge a robust corporate culture will involve placing top priority on ensuring levels of qualitythat instill customer confidence while strengthening ESG, which is to say increasing employee satisfaction,
strengthening both legal and financial governance, and pursuing CSR initiatives. When it comes toincreasing employee satisfaction in particular, we will place utmost priority on “reforming working styles,”thereby practicing the Yamato Group founding principle of “inclusive management” by making“employee-friendly” and “rewarding” working environments a reality across the entire Yamato Group. To
such ends, we will take action that includes securing workforce capacity by upgrading to more appealing
personnel systems that attract a diverse range of talent, while also fostering employee pride andmotivation through initiatives that entail re-establishing an educational system and adopting a performance
evaluation scheme that facilitates an upbeat approach to work by rewarding employee independence andautonomyb. Given the situation where Yamato Home Convenience Co., Ltd. (YHC) inappropriately billed corporateclients for moving-related services provided to their employees, we considered information and advice
from an “investigation committee consisting of external independent experts” established within the
Company, including a survey of facts relating to the incidents, analysis of the causes thereof, andproposals for measures to prevent recurrence, as well as administrative sanctions and business
improvement orders issued to YHC by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
Accordingly, YHC has submitted reports to MLIT with respect to the improvement measures according tothe orders, and has otherwise been taking steps to prevent a recurrence of such incidents through efforts
that have included improving the organizational framework, comprehensively inspecting all moving-related
services, fundamentally overhauling the moving business, and revamping product design. We haveconducted another review to assess YHC’s contractual compliance involving all of its moving-related
services, including those for its individual customers, and have furthermore stopped YHC from taking neworders involving services that are not in compliance until YHC has finished re-designing product offerings
so that they comply with contracts. Meanwhile, the Group Governance Project established at theCompany has been spearheading efforts that involve comprehensively inspecting all of the Group’s
products and services, improving operations of the whistle-blower system, and implementing ethics
education for employees. In so doing, we will continue to carry out drastic and comprehensive measures
to rebuild Group governance, with the aim of enhancing sound Group management.
c. With respect to “reforming working styles” of Yamato Transport Co., Ltd. which is at the core entity of theGroup, we will persist with initiatives that include “improving and implementing thorough labor
management” and “encouraging a work-life balance” through efforts geared to placing top priority on“heightening employee satisfaction by bringing about a working environment where employees can takean upbeat approach to work.” At the same time, in addressing the issue of the labor shortage as it extends
into the future, we will work to heighten productivity across every aspect of Group operations, includingcollection and delivery operations, back-office and sorting operations, by linking systems with business
operators, more swiftly setting up open-type parcel lockers (PUDO station), and optimizing the entire

-9-

d.

e.

f.

g.

network, as well as active use of cutting-edge technologies. Furthermore, we will strike a balance between
regaining profitability and expanding collection and delivery capacity through our efforts currently
underway with respect to “rebuilding our ‘last mile’ network to make it more efficient” and “carrying out
continuous and adequate pricing initiatives.”
We will contribute to Japanese economic growth strategies by pushing ahead with our “Value Networking”
design which aspires to revolutionize logistics. We will persist with efforts to further develop our “last mile”
network, the greatest strength of the Yamato Group, by making use of our “Haneda Chronogate,” and“Okinawa International Logistics Hub” facilities, as well as respective gateways linking major cities in the
Kanto, Chubu, and Kansai regions. Meanwhile, we will work toward creating a business model that cangenerate a high level of added value that improves logistics speed, quality and costs, by fusing ourbusiness resources in areas such as information, logistics and transaction settlement within this network.
Moreover, we will strengthen account sales geared to our corporate clients in Japan and overseas on aGroup-wide basis, and otherwise work toward proposing solutions that address our customers’ challenges.
In our business looking toward global markets, leveraging certifications under international standards
pertaining to chilled and frozen goods delivery services acquired by eight Yamato Group companies, wehave been actively promoting efforts to build cross-border networks that provide substantial added value.
In responding to the growth of cross-border logistics, we will continue working to forge collaboration
among five regions, Japan, East Asia, South East Asia, Europe and the Americas, while strengthening ourcapabilities in each geographic region.
With the aim of enhancing our management foundations, we will incorporate cutting-edge digitaltechnologies as we create new businesses and bring about evolution and innovation of our existing ones.
In addition, to heighten our “capacity to generate earnings” leveraging the collective strengths of the Group,
we will reform the structure of Group management and upgrade to a management system that combines
three components: accounts management, managerial accounting, and human resources (performance
evaluation).
We will build a platform that links us with government bodies and corporations in various regions
throughout Japan, with the aim of providing support to people in their daily lives and revitalizing their local
communities. We will strive to become the group of companies which is the most appreciated and trusted
by society by creating value that can be shared among corporations and society through our core
operations.

2. Fundamental Approach to Selection of Accounting Standards
The Yamato Group has adopted Japanese GAAP because the Group engages in business primarily in Japan.
However, we intend to give ongoing consideration to IFRS and other accounting standards aligned withupcoming expansion into Asia and other locations overseas.

- 10 -

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

As of March 31, 2019

AssetsCurrent assets
Cash and deposits

204,422

195,954

Notes and accounts receivable - trade

224,099

220,159

Accounts receivable - installment

46,69244,802

Lease receivables and investment assets

52,64154,537

Merchandise and finished goods

749

642

Work in process

146

194

Raw materials and supplies

1,919

2,410

Other

30,32833,032

Allowance for doubtful accounts(1,365)(1,475)

Total current assets

559,635

550,258

336,986

352,141

Accumulated depreciation(198,538)(204,191)

Buildings and structures, net

138,447

147,950

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

Machinery and equipment

65,52270,201

Accumulated depreciation(43,686)(47,619)

Machinery and equipment, net

21,835

22,582

197,587

208,031(180,329)(183,835)

17,257

24,195Land

174,959

175,995

Leased assets

15,66931,537

Accumulated depreciation(9,074)(9,531)

Leased assets, net

6,595

22,006

Construction in progress

16,200

8,391

Other

91,421

89,347

Accumulated depreciation(61,660)(61,551)

Other, net

29,76027,796

405,057

428,918

Software17,25917,312

Other

2,872

3,311

Total intangible assets

20,131

20,624

VehiclesAccumulated depreciation
Vehicles, net

Total property, plant and equipment
Intangible assets- 11 -

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Investments and other assets
Investment securities

59,84154,013Long-term loans receivable

2,978

4,039

Leasehold deposits

17,391

18,342

129

161

Deferred tax assets

47,02244,385

Other

3,730

3,917

Allowance for doubtful accounts(920)(1,002)

Allowance for investment loss

(126)

–

130,045

123,858

555,235

573,401

1,114,870

1,123,659

Notes and accounts payable - trade155,323

158,938

Short-term loans payable

66,95260,800Current portion of bonds

10,000–

Lease obligations

2,239

2,791

Income taxes payable

11,01923,747Retirement benefit asset

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

Deferred installment income

5,900

5,341

Provision for bonuses

33,20835,844

Other

110,390122,961

Total current liabilities

395,035

410,423

Bonds payable

10,00010,000Long-term loans payable

60,30019,500

Lease obligations

3,548

20,142

Non-current liabilities

Deferred tax liabilities

4,088

4,180

Retirement benefit liability

75,49574,508

Other

8,814

11,515

162,247

139,847

557,283

550,270

Total non-current liabilities
Total liabilities- 12 -

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Net assets
Shareholders’ equity
Capital stock

127,234

127,234

Capital surplus

36,81336,813Retained earnings

416,854431,497

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

Total shareholders’ equity

541,821556,459

Valuation difference on available-for-sale securities

12,958

12,975

Foreign currency translation adjustment

1,146

(515)

Remeasurements of defined benefit plans(5,618)(3,078)

Total accumulated other comprehensive income

8,486

9,381

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets- 13 -

7,279

7,547

557,586

573,388

1,114,870

1,123,659

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Operating revenue

1,538,813

1,625,315

Operating cost

1,452,485

1,513,988

86,327111,327

25,701

26,092

Provision for bonuses

1,100

1,022

Retirement benefit expenses

1,168

997

Commission expenses

6,928

6,704

Taxes and dues

8,061

9,412

Provision of allowance for doubtful accounts

813

1,267

Depreciation

1,923

1,412

Other

7,211

8,092

Total selling, general and administrative expenses

50,642

52,98135,68558,345Interest income

136

153

Dividend income

844

883

Operating gross profit
Selling, general and administrative expenses
Personnel expenses

Operating profit
Non-operating income

Gain on sales of vehicles

278

267

Other

1,337

1,063

Total non-operating income

2,596

2,367

Non-operating expenses
Interest expenses

271

275

Share of loss of entities accounted for using equity method

1,355

4,872

Other

569

1,305

Total non-operating expenses

2,196

6,453

36,08554,259Gain on sales of non-current assets

179

9Gain on sales of investment securities

1,639

37

Compensation for delay damages

–

1,775

Other

3

–

1,821

1,822

Ordinary profit
Extraordinary income

Total extraordinary income- 14 -

(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Extraordinary losses
Loss on retirement of non-current assets

1,148

309

Impairment loss

3,241

2,087

Loss on valuation of investment securities

55

1,396

Provision of allowance for investment loss

126–

Provision of allowance for doubtful accounts

136

–

Other

75

30

4,783

3,823

Profit before income taxes

33,12352,258

Income taxes - current

14,621

24,651

Income taxes - deferred

(186)

1,656

Total income taxes

14,43526,308

Profit18,68825,949Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 15 -

456

267

18,231

25,682

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2018
ProfitFiscal year ended
March 31, 2019

18,68825,949Valuation difference on available-for-sale securities

2,514

(115)

Foreign currency translation adjustment

1,569(1,661)Remeasurements of defined benefit plans, net of tax

0

2,541

Share of other comprehensive income of entities accounted
for using equity method

(0)

273

4,084

1,038

22,772

26,987

Comprehensive income attributable to owners of parent

21,77926,577

Comprehensive income attributable to non-controllinginterests

992

410

Other comprehensive income

Total other comprehensive income
Comprehensive income(Breakdown)- 16 -

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares409,270(39,077)

534,241

Changes of items during
periodDividends of surplus(10,645)(10,645)

Decrease in retained
earnings owing to changes
in scope of equity method
application

(2)

(2)

Profit attributable to ownersof parent

18,231

18,231

Purchase of treasury shares
Disposal of treasury shares

0

(4)

(4)

0

0

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

—

0

7,584

(4)

7,580

127,234

36,813416,854(39,081)541,821

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

10,975(422)(5,614)

4,938

6,379

545,559

Changes of items during
periodDividends of surplus(10,645)

Decrease in retained
earnings owing to changes
in scope of equity method
application(2)

Profit attributable to ownersof parent

18,231

Purchase of treasury shares(4)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

1,983

1,569

(4)

3,548

899

4,447

Total changes of items during
period

1,983

1,569

(4)

3,548

899

12,027

Balance at end of current
period12,9581,146(5,618)

8,486

7,279

557,586- 17 -

Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

416,854(39,081)541,821

Changes of items during
periodDividends of surplus(11,039)(11,039)

Profit attributable to ownersof parent

25,682

25,682

Purchase of treasury shares
Disposal of treasury shares

0

(4)

(4)

0

0

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—014,642(4)

14,638127,234

36,813

431,497(39,085)

556,459

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

12,9581,146(5,618)

8,486

7,279

557,586

Changes of items during
periodDividends of surplus(11,039)

Profit attributable to ownersof parent

25,682

Purchase of treasury shares(4)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

16(1,661)

2,539

895

268

1,163

Total changes of items during
period16(1,661)

2,539

895

268

15,801

12,975(515)(3,078)

9,381

7,547

573,388

Balance at end of current
period- 18 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from operating activities
Profit before income taxes

33,12352,258Depreciation

46,43551,358

Impairment loss

3,241

2,087

Increase (decrease) in retirement benefit liability

2,232

1,935

Increase (decrease) in provision for bonuses

1,256

2,646

(15,129)–

Interest and dividend income(980)(1,036)

Interest expenses

391

405

Share of loss (profit) of entities accounted for using
equity method

1,355

4,872

Loss (gain) on sales of non-current assets

(106)

(9)

Loss on retirement of non-current assets

1,148

309

Loss (gain) on sales of investment securities(1,639)(37)

Loss (gain) on valuation of investment securities

55

1,396

(18,774)

3,222

Decrease (increase) in inventories

227

(295)

Increase (decrease) in notes and accounts payable trade

(477)

3,772

Other, net

11,691

6,547

Subtotal

64,049129,434

Interest and dividend income received

929

1,028

Interest expenses paid

(384)

(401)

Increase (decrease) in provision for special wage
payments

Decrease (increase) in notes and accounts
receivable - trade

Compensation for delay damages received

–

1,775

Income taxes paid

(12,866)(13,744)

Net cash provided by (used in) operating activities

51,728118,093

Payments into time deposits(2,282)(2,981)

Proceeds from withdrawal of time deposits

1,880

3,206

Purchase of property, plant and equipment(36,671)(48,058)

Proceeds from sales of property, plant andequipment

6,631

4,233

Purchase of investment securities(1,708)(513)

Cash flows from investing activities

Proceeds from sales of investment securities

2,689

80

Payments of loans receivable(4,537)(2,949)Collection of loans receivable

1,103

1,250

Other payments(9,667)(10,185)

Other proceeds

1,388

1,044

(41,174)(54,872)

Net cash provided by (used in) investing activities- 19 -

(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

13,252(13,342)

Repayments of finance lease obligations(2,570)(2,822)

Proceeds from long-term loans payable

4,000

–

Repayments of long-term loans payable(40,876)(33,600)

Redemption of bonds–(10,000)

Cash dividends paid

(10,640)(11,035)

(92)

(142)

Dividends paid to non-controlling interests
Other, net

(4)

(4)

(36,930)(70,947)

313

(486)

Net increase (decrease) in cash and cash equivalents(26,063)(8,212)

Cash and cash equivalents at beginning of period

228,926

202,863

Cash and cash equivalents at end of period

202,863

194,650

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents- 20 -

(5) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 39
Names of major consolidated subsidiaries:
Yamato Transport Co., Ltd.
Okinawa Yamato Transport Co., Ltd.
Yamato Global Express Co., Ltd.
Yamato Logistics Co., Ltd.
Yamato Global Logistics Japan Co., Ltd.
YAMATO TRANSPORT U. S. A., INC.
Yamato Home Convenience Co., Ltd.
Yamato System Development Co., Ltd.
Yamato Financial Co., Ltd.
Yamato Lease Co., Ltd.
Yamato Autoworks Co., Ltd.
YAMATO BOX CHARTER CO., LTD
YAMATO (CHINA) CO., LTD.
YAMATO INVESTMENT (HONG KONG) LIMITEDYAMATO ASIA PTE. LTD.
Yamato Multi-Maintenance Solutions Co., Ltd. is excluded from the scope of consolidation effective fromthe fiscal year under review, because it ceases to exist upon absorption-type merger having been carriedout with Yamato Logistics Co., Ltd., the surviving company.
(2) Non-consolidated subsidiaries, etc.
OTL ASIA SDN. BHD. and certain other subsidiaries are not included within the scope of consolidation.
The total assets, operating revenue, profit, and retained earnings of these non-consolidated subsidiaries
are immaterial and, even taken together as a group, they do not exert a significant influence on the
consolidated financial statements.
2.

Application of equity method(1) Number of affiliates accounted for using equity method: 17
Names of major equity method affiliates:
GD EXPRESS CARRIER BHD.
Packcity Japan Co., Ltd.
GUANGZHOU WISEPOWER TRANSPORTATION& DISTRIBUTION GROUP CO., LTD.
Effective from the fiscal year under review, GDEX PROPERTIES SDN. BHD. was included in the scope ofthe equity method as GD EXPRESS CARRIER BHD., an affiliate accounted for using the equity method,
newly acquired its shares.
(2) Non-consolidated subsidiaries and affiliates not accounted for using equity method
Entities not subject to the equity method such as OTL ASIA SDN. BHD. and certain othernon-consolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliatedcompanies are excluded from the scope of entities accounted for using the equity method because they
do not exert a significant influence on the consolidated financial statements even when taken together asa group, given immateriality of their profit, retained earnings and other financial results corresponding tothe ownership held by the Company.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

(Changes in presentation method)
Changes upon Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) effective from the beginning of the fiscal year ended March 31, 2019.

- 21 -

Accordingly, as the Group changed the presentation method, deferred tax assets were presented under“Investments and other assets” and deferred tax liabilities were presented under “Non-current liabilities.”
As a result, in the consolidated balance sheet for the previous fiscal year, “Deferred tax assets” under “Current
assets” decreased 19,245 million yen and “Deferred tax assets” under “Investments and other assets” increased
18,682 million yen. In addition, “Deferred tax liabilities” included in “Other” under “Current liabilities” and “Deferred
tax liabilities” under “Non-current liabilities” decreased 1 million yen and 561 million yen respectively.
Note that total assets decreased 563 million yen before the changes, as deferred tax assets and liabilities of thesame taxable entity were offset.
(Segment information, etc.)
1. Segment information(1) Summary of reportable segment
The reportable segments of the Yamato Group are constituent units of the Yamato Group whose separate
financial information can be obtained. The Board of Directors of the Company periodically examines thesesegments to decide on the allocation of management resources and evaluate business performance.
The Yamato Group consists of six business segments under the umbrella of the Company, a pure holding
company, and these business segments have been formed according to business activity. Business
management is conducted based on this business segment.
Accordingly, based on this business segment, the Yamato Group has the following six reportable segments:
Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial business, andAutoworks business.
Type of services by reportable segment
Reportable segment
Delivery
BIZ-Logistics
Home Convenience
e-Business
Financial
Autoworks

Type of services
Small parcel delivery services for consumers and corporations
Business-to-business distribution
Moving and other lifestyle support services for consumers
Information services for corporations, such as ASP services and development of
information systems
Financial services for consumers and corporations, such as settlement
Collective vehicle management agent business for transportation companies(2) Method of calculating operating revenue, profit/loss, assets and other items by reportable segment
The accounting method used for reported business segments complies with accounting policy that has been
adopted in preparing the consolidated financial statements.

- 22 -

(3) Information regarding the amounts of operating revenue, profit/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2018
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,201,769

145,148

44,86827,303

82,956

69,67014,092

13,40938,7232,900

1,271,440
6,756
662,597

159,240
7,053
76,55658,277
199
21,94866,027
7,945
47,32585,856
7,913
258,499

32,916

2,413

579

3,866

5,232

523

5,348

—

—

—

34,380

4,088

874

1,546

11,644

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment profit
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,641
12,125
1,538,813—
1,538,813
Inter-segment operating revenue or
30,29944,273
213,368(213,368)—transfers
Total
54,94056,3981,752,181(213,368)
1,538,813
Segment profit
4,141
17,21751,226(15,541)
35,685
Segment assets
28,013
13,543
1,108,484
6,385
1,114,870
OthersDepreciation
695
373
46,078344
46,423
Investment in entities accounted for
—
—
5,871
13,957
19,829using equity method
Increases of property, plant and
830
803
54,168313
54,482equipment and intangible assets
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 17,482 million yen.
3. Adjustments made are as follows.
(1) The adjustment of negative 15,541 million yen of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of 6,385 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of negative 154,869 million yen and group-wide assets of 161,255 million yen not allocated to each reportable segment.
(3) The adjustment of 13,957 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 313 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 304 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

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Fiscal year ended March 31, 2019
(Millions of yen)
BIZ-Logistics(Note 1)

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

1,297,222

147,437

33,404

26,592

79,966

64,136

12,281

12,623

41,1532,856

1,361,359
40,787
718,911

159,719
3,329
77,462

46,027(7,764)
12,281

67,7468,740
44,13682,823
6,244
257,20737,221

2,574

514

3,531

6,000

426

4,836

—

—

—

56,896

5,212

763

1,570

7,103

Reconciliation(Note 4)

Amountrecorded inconsolidated
financialstatements(Note 5)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment profit
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 2, 3)

Total

Financial

Operating revenue
Operating revenue from customers
25,985
14,705
1,625,315—
1,625,315
Inter-segment operating revenue or
31,41546,297
210,764(210,764)—transfers
Total
57,40061,002
1,836,079(210,764)
1,625,315
Segment profit
4,433
19,37275,144(16,798)
58,345
Segment assets
29,37822,385
1,161,762(38,102)
1,123,659
OthersDepreciation
644
621
51,108238
51,346
Investment in entities accounted for
—
—
5,262
9,251
14,514using equity method
Increases of property, plant and
512
7,647
79,706
132
79,838equipment and intangible assets
Notes: 1. Effective from the fiscal year ended March 31, 2019, changes have been made to reportable segments for certain businesses as aresult of organizational restructuring being carried out to reform organizational structures and innovate the management system
under the “KAIKAKU 2019 for NEXT100” medium-term management plan. As the principal points of change, the TechnicalNetwork business, which was previously included in Home Convenience, the e-Logistics solution business, e-On Demandsolutions business, and Setup and Logistics solutions business, which previously were included in e-Business, are now includedin BIZ-Logistics. The segment information for the fiscal year ended March 31, 2018 has been prepared and presented according
to the new classification.
2. Other includes business-to-business distribution via JITBOX Charter and shared services.
3. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 18,593 million yen.
4. Adjustments made are as follows.
(1) The adjustment of negative 16,798 million yen of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of negative 38,102 million yen of segment assets includes eliminations of intersegment receivables andpayables, etc. of negative 184,579 million yen and group-wide assets of 146,476 million yen not allocated to each reportablesegment.
(3) The adjustment of 9,251 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 132 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 130 million yen.
5. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

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2.

Information regarding impairment losses of non-current assets by reportable segment
Fiscal year ended March 31, 2018
(Millions of yen)
Delivery
Impairment loss

BIZ-Logistics

2,426
Autoworks

Impairment loss

Home
Convenience

685
Other

e-Business38—
Corporate or
eliminations

Total

91

Financial

—

3,241

265

Home
Convenience
1,275—
Consolidated

—

3,241

Fiscal year ended March 31, 2019
(Millions of yen)
Delivery
Impairment loss

BIZ-Logistics
546

Autoworks
Impairment loss

Other
—

- 25 -

Financial—

Corporate or
eliminations

Total
—

e-Business

2,087

—
Consolidated

—

2,087

(Per share information)
Fiscal year ended
March 31, 2018
Net assets per share (Yen)
Basic earnings per share (Yen)
Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. The basis for calculating “basic earnings per share” is as follows.

Fiscal year ended
March 31, 2019

1,395.74
46.24

Fiscal year ended
March 31, 2018
Profit attributable to owners of parent (Millions of yen)

Fiscal year ended
March 31, 201918,231

Amount not belonging to ordinary shareholders (Millions of yen)

1,435.15
65.14

25,682——

Profit attributable to owners of parent concerning common shares (Millions of yen)

18,231

25,682Average number of common shares during the period (Thousands of shares)

394,276394,275(Important subsequent matters)
Not applicable.

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4. Others
Operating revenue by business
Fiscal year ended
March 31, 2019
AmountRatio(Millions of yen)(%)
1,199,084
73.8

Kuroneko DM-Bin

82,542

5.4

73,062

4.5(11.5)

Express

42,456

2.8

41,615

2.6(2.0)

Business segment
TA-Q-BIN

Delivery

102,8816.7

100,698

6.2

(2.1)

(125,453)(8.2)(117,237)

(7.2)

(6.5)

1,201,769
39,07578.1
2.5

1,297,222
41,829

79.8
2.6

7.9
7.0

Sales and Logistics

46,4933.0

42,247

2.6(9.1)

Multi maintenance

15,586

1.0

15,9591.0

2.4

Products Logistics

4,797

0.3

5,179

0.3

8.0

Technical Network*

4,428

0.3

1,547

0.1

(65.1)

e-Logistics solution*

12,381

0.8

10,8900.7(12.0)

Others*54,0493.5

56,7583.5

5.0(31,663)(2.1)(26,973)(1.7)(14.8)

145,148
41,9389.4
2.7

147,437
30,945

9.1
1.9

1.6
(26.2)

Eliminations
Total
Home convenience

e-BusinessBusiness convenience

16,396

1.1

15,0940.9(7.9)

Eliminations(13,467)(0.9)(12,636)

(0.8)

(6.2)

Total
Credit card solution
IT operating
Web-based mail order solution
Others*44,868
9,733
6,971
5,899
47,248

2.9
0.6
0.5
0.4
3.1

33,404
9,373
7,470
5,844
50,827

2.1
0.6
0.5
0.4
3.1

(25.5)
(3.7)
7.2
(0.9)
7.6

Eliminations(42,549)(2.8)(46,922)

(2.9)

10.3

Payment

27,30334,883

1.8
2.3

26,592
32,162

1.6
2.0

(2.6)
(7.8)

Lease

40,498

2.6

40,181

2.5(0.8)

Credit & Finance

3,768

0.2

3,479

0.2

(7.7)

Others

6,785

0.4

7,056

0.4

4.0

Eliminations(2,979)(0.2)(2,913)

(0.2)

(2.2)

Total
Truck solution
Others82,956
48,768
8,868

5.4
3.2
0.6

79,96650,486
9,620

4.9
3.1
0.6

(3.6)
3.5
8.5

Eliminations(32,994)(2.1)(34,121)

(2.1)

3.4

Total
JITBOX Charter service

24,641
10,46748,935

1.6
0.7
3.2

25,985
12,60951,651

1.6
0.8
3.2

5.5
20.5
5.5

(47,277)(3.1)(49,556)

(3.0)

4.8

Total

Financial

Autoworks

Other

9.1

Eliminations
Total

Home
Convenience

Change(%)

OthersTrading logistics service

BIZ-Logistics(Millions of yen)

Fiscal year ended
March 31, 2018
AmountRatio(Millions of yen)(%)
1,099,341
71.4

OthersEliminations
Total

12,1250.8
14,705
0.9
21.3
Total
1,538,813
100.0
1,625,315
100.0
5.6* Effective from the fiscal year ended March 31, 2019, changes have been made to reportable segments for certain businesses as a result oforganizational restructuring being carried out to reform organizational structures and innovate the management system under the“KAIKAKU 2019 for NEXT100” medium-term management plan. The principal changes are shown below. The segment information for the
fiscal year ended March 31, 2018 has been restated to reflect the new classification.
• The Technical Network business that belonged to Home Convenience is included in BIZ-Logistics.
• e-Logistics solution business that belonged to e-Business is presented in BIZ-Logistics, e-On Demand solutions business and Setup
and Logistics solutions business that belonged to other in e-Business is presented in other in BIZ-Logistics.

- 27 -