To Our Shareholders
The Yamato Group is striving concertedly to materialize its management philosophy, which is to help enrich oursociety by enhancing the social infrastructure of TA-Q-BIN networks, creating more convenient services for comfortable lifestyles and developing an innovative logistics system.
It was to this end that our long-term DAN-TOTSU Management Plan 2019 was formulated in January 2011.
We are endeavoring to become Asia’s No. 1 solution provider in distribution and lifestyle support by fiscal
2020, when we will celebrate our 100th anniversary.
This long-term plan consists of three successive medium-term management plans. The first is the DAN-TOTSUThree-Year Plan HOP (covering fiscal 2012 through fiscal 2014). The second is DAN-TOTSU Three-Year Plan STEP
(fiscal 2015 through fiscal 2017). The third is DAN-TOTSU Three-Year Plan JUMP (fiscal 2018 through fiscal 2020).
The past fiscal year (fiscal 2013) was the second year of DAN-TOTSU Three-Year Plan HOP, meaning fiscal
2014 will bring the curtain down on the first of our three successive medium-term management plans.
In fiscal 2013, the business environment in Japan saw positive factors such as a reversal of the strong yen
trend and rise in stock prices from December 2012 on the back of anticipation of the new administration of Prime
Minister Shinzō Abe and its growth strategies for reviving the economy. On the other hand, the economic outlook
continued to be clouded with uncertainty due to factors such as concerns about a resurgence of the debt crisis inEurope.
Under this operating climate, the Yamato Group responded to ever-evolving customer needs by further enhancing the TA-Q-BIN and other existing businesses, while developing new business lines by comprehensively leveraging

left

Kaoru Seto
Representative Director andChairman

right

Makoto Kigawa
Representative Director,
President and Executive Officer2

Group management resources.
In the existing Delivery Business, Kuroneko Mail handling volume declined owing to stricter policies on parcel
acceptance that emphasize compliance, and stiffer competition.
In our mainstay TA-Q-BIN service, we organically integrated a pioneering consumer-centric strategy of differentiation with non-delivery businesses to successfully expand our solution business. This enabled us to capture package delivery demand in the growing mail-order market.
In terms of new businesses, one business we launched in an increasingly borderless world was next-day document delivery to locations covered by our overseas TA-Q-BIN business. This service draws on our logistics hub
capabilities in Okinawa. This is the first step toward building an integrated transportation service in Asia.
As a result of these factors, operating revenues rose 1.7% year on year in fiscal 2013, to ¥1,282,374 million.
However, operating income was down 0.7%, to ¥66,203 million.

Millions of Yen

FY09/3Operating revenues
Delivery
Non-Delivery
Total
Operating income(Operating margin)
Net income(Net margin)

FY10/3

FY11/3

FY12/3

FY13/3¥ 997,898 ¥ 966,480 ¥ 995,651 ¥1,014,564 ¥1,028,219
254,024
234,354240,869
246,269
254,155
1,251,922
1,200,834
1,236,520
1,260,833
1,282,374
55,721
61,38964,314
66,651
66,203
4.5%
5.1%
5.2%
5.3%
5.2%
25,52332,282
33,20819,78735,144
2.0%
2.7%
2.7%
1.6%
2.7%

ChangeIncrease/
Decrease
YoY(%)¥13,655
7,886
21,541(448)–15,357–

1.3
3.2
1.7(0.7)–
77.6–

Return on Equity
ROE improved steadily to 6.7%, one factor being a share buyback(%)
8.0of approximately ¥10.0 billion in February 2013.
6.53

6.0

6.70

6.46

We intend to continue managing the Company with an eye on
growth in order to continue to be the logistics partner chosen and5.42

trusted by customers.

3.84

4.0

We ask our shareholders for your ongoing encouragement andsupport.

2.00

August 201320092010

20112012

2013

AnnuAl RepoRt 20133