Translation

April 28, 2016

Consolidated Financial Results for the Year Ended March 31, 2016
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Masaki Yamauchi, President
Kenichi Shibasaki, Senior Managing 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 24, 2016
Scheduled date of the commencement of dividend payment:
June 3, 2016
Scheduled date of the submission of annual securities report:
June 17, 2016
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 2016 (from April 1, 2015 to March 31, 2016)(1) Consolidated operating results
Operating revenue

Operating income(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

For the year ended Millions of yen% Millions of yen%
Millions of yen
March 31, 2016
1,416,413
1.4
68,540(0.6)
69,426
March 31, 2015
1,396,708
1.6
68,9479.3
70,889(Note) Comprehensive income:For the year ended March 31, 2016: 24,482 million yen ((47.1) %)For the year ended March 31, 2015: 46,243 million yen (17.9 %)Basic earnings per
share

Diluted earnings
per share

%
(2.1)
9.6

Millions of yen
39,42437,533

Ratio of ordinary
income to total
assetsReturn on equity

For the year ended
Yen
Yen
%
March 31, 2016
96.45
95.64
7.1
March 31, 2015
90.41
88.26
6.7
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2016: — million yen
For the year ended March 31, 2015: — million yen

%
6.4
6.7

%
5.0
7.9

Ratio of operating
income to operating
revenue%
4.8
4.9(2) Consolidated financial position
Total assets
As ofMarch 31, 2016
March 31, 2015
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
1,089,436
543,855
49.4
1,082,531
571,199
52.2
As of March 31, 2016: 537,821 million yen
As of March 31, 2015: 565,521 million yen

Yen
1,349.56
1,368.66(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2016
March 31, 2015

Millions of yen
49,715
92,620Cash flows frominvesting activities
Millions of yen(30,230)(58,485)

Cash flows fromfinancing activities
Millions of yen(16,833)(7,168)Cash and cash equivalents
at end of period
Millions of Yen
249,261
247,051

2.

Dividends
Annual dividendsFirstquarter

Secondquarter

Yen
Fiscal 2015
Fiscal 2016

—
—

Yen
12.00
13.00

Third
quarter

Fiscalyear-end

Yen

Yen
13.00
15.00

—
—

Total
Yen
25.00
28.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
10,40911,280

%
27.7
29.0

%
1.9
2.1

Fiscal 2017
—
13.00
—
14.00
27.00
27.9
(Forecast)(Note) Breakdown of year-end dividends in fiscal year ended March 31, 2016: Ordinary dividends:
13.00 yen
Commemorative dividends: 2.00 yen

3.

Consolidated earnings forecasts for fiscal year 2017 (from April 1, 2016 to March 31, 2017)
Operating revenue

Half year
Full year

Millions of yen
710,000
1,460,000

Operating income
%
3.8
3.1

Millions of yen
20,00064,000

%
11.1
(6.6)

Ordinary income
Millions of yen
20,00064,500(Percentages indicate year-on-year changes.)
Basic
Profit attributable toearnings
owners of parent
per share
%
7.4
(7.1)

Millions of yen
11,00038,500

%
12.7
(2.3)

Yen
27.60
96.61

* 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, 2016:
411,339,992 shares
As of March 31, 2015:
435,564,792 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2016:
12,823,544 shares
As of March 31, 2015:
22,370,985 sharesc. Average number of shares during the period
For the year ended March 31, 2016:
408,742,891 shares
For the year ended March 31, 2015:
415,131,038 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per Share Information” onpage 46.

(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for fiscal year 2016 (from April 1, 2015 to March 31, 2016)(1) Non-consolidated operating results
Operating revenue
For the year ended
March 31, 2016
March 31, 2015

Millions of yen
32,23627,756(Percentages indicate year-on-year changes.)
Ordinary income
ProfitOperating income
%
16.1
(4.9)

Millions of yen
25,176
23,071

Basic earnings per share
For the year ended
March 31, 2016
March 31, 2015

%
9.1
(5.5)

Millions of yen
25,473
24,415

%
4.3
(3.7)

Millions of yen
19,43018,632%
4.3(10.4)

Diluted earnings per share

Yen
47.54
44.88

Yen
47.16
43.82

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

As ofMillions of yen
Millions of yen%
March 31, 2016
522,348342,257
65.5
March 31, 2015
527,627
378,122
71.7(Reference) Equity: As of March 31, 2016: 342,257 million yen
As of March 31, 2015: 378,122 million yen

Net assets per share
Yen
858.83915.12* Indication regarding execution of audit procedures
At the time of the disclosure of this financial results report, the audit procedures in accordance with the Financial Instruments and Exchange
Act are in progress.

* 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 “Analysis of operating results and financial position.”• The Company plans to hold a financial results meeting for analysts on May 2, 2016. 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. Analysis of Operating Results and Financial Position ............................................................................................. 5(1) Analysis of operating results ............................................................................................................................. 5(2) Analysis of financial position ........................................................................................................................... 10(3) Basic profit distribution policy and dividends for fiscal 2016 and 2017 ............................................................ 11
2. Status of the Corporate Group .............................................................................................................................. 12
3. Management Policy............................................................................................................................................... 14(1) Basic corporate management policies, medium- to long-term corporate management strategies and target
management indicators ................................................................................................................................... 14(2) Issues to be addressed by the Company ........................................................................................................ 14
4. Fundamental Approach to Selection of Accounting Standards ............................................................................. 15
5. Consolidated Financial Statements ....................................................................................................................... 16(1) Consolidated balance sheet ............................................................................................................................ 16(2) Consolidated statement of income and consolidated statement of comprehensive income............................ 19(3) Consolidated statement of changes in equity .................................................................................................. 22(4) Consolidated statement of cash flows ............................................................................................................. 24(5) Notes to consolidated financial statements ..................................................................................................... 26(Notes to premise of going concern) ..................................................................................................................... 26(Significant matters forming the basis of preparing the consolidated financial statements) .................................. 26(Changes in presentation) ..................................................................................................................................... 28(Consolidated balance sheet) ............................................................................................................................... 28(Consolidated statement of income)...................................................................................................................... 28(Consolidated statement of comprehensive income) ............................................................................................ 29(Consolidated statement of changes in equity) ..................................................................................................... 30(Consolidated statement of cash flows) ................................................................................................................ 31(Segment Information) .......................................................................................................................................... 32(Tax Effect Accounting) ......................................................................................................................................... 37(Financial Instruments).......................................................................................................................................... 38(Securities) ............................................................................................................................................................ 42(Retirement Benefit) .............................................................................................................................................. 44(Per Share Information)......................................................................................................................................... 46(Important Subsequent Matters) ........................................................................................................................... 46(Other Notes, etc.)................................................................................................................................................. 46
6. Others ................................................................................................................................................................... 47
Operating revenue by business ............................................................................................................................ 47
7. Non-consolidated Financial Statements ................................................................................................................ 48(1) Non-consolidated balance sheet ..................................................................................................................... 48(2) Non-consolidated statement of income ........................................................................................................... 50(3) Non-consolidated statement of changes in equity ........................................................................................... 51-4-

1. Analysis of Operating Results and Financial Position(1) Analysis of operating results
In the fiscal year ended March 31, 2016, the economic environment was plagued by a lack of firm businesssentiment despite high levels of corporate earnings, amid adverse effects of the economic slowdown inemerging nations and yen appreciation. With personal consumption, real wages have been languishing andbuying behavior still remained stagnant amid deeply entrenched anxieties over the prospect of rising prices.
Moreover, the Yamato Group also continued to face harsh operating circumstances as tight labor market
conditions persisted. Operating in this environment, we worked toward achieving the objectives of theLong-Term Management Plan “DAN-TOTSU Management Plan 2019” and the Medium-Term Management
Plan “DAN-TOTSU Three-Year Plan STEP.” To that end, we focused on creation of a business model for
generating substantial added value by building a premium-quality network to enable efficient logistics andfusing together the Group’s business resources.
In the Delivery Business, we achieved greater customer use of the new “TA-Q-BIN Compact” and “Nekopos”
services launched in April 2015, due to increased sales to mail-order business operators and progress made informing partnerships with flea market websites. Overall, revenues in the Delivery Business increased due toincreased TA-Q-BIN delivery volume centered on our new services, but on the profit front, earnings decreased
because growth in business generated by Kuroneko DM-Bin and the new services did not make up for the
impact of our discontinuing the Kuroneko Mail service.
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, 2016 were as follows.
Item

Fiscal 2015

Fiscal 2016

(Millions of yen)
Growth (%)

ChangeOperating revenue

1,396,708

1,416,413

19,704

1.4

Operating income

68,947

68,540

(406)

(0.6)

Ordinary income

70,88969,426(1,463)(2.1)

Profit attributable toowners of parent

37,53339,4241,891

5.0

During the fiscal year ended March 31, 2016, we purchased treasury shares of 19.84 million shares, for a totalacquisition cost of about 50.0 billion yen, and retired 24.22 million shares of treasury shares.
Initiatives for the entire Yamato Groupa. The Yamato Group has been pursuing its “Value Networking” design, on the basis of creating businessmodels for generating a high level 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 for business creation and development.
b. To further promote 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 have been making more effective use of our innovative
network platform consisting of the “Haneda Chronogate,” “Atsugi Gateway” and “Okinawa International
Logistics Hub” facilities, in addition to our existing “last mile” network.
c. 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. In addition, we redoubled our employee education efforts and focused on building systems for
ensuring that we honor promises made to our customers. Moreover, we actively engaged in CSR-related
activities linked to Yamato Group business endeavors, such as through environmental and safetymeasures, and efforts to prosper communities.
d. Given expectations for future growth in the mail-order market, we aggressively forged ahead with efforts
to increase sales of the “YES!” (Yamato Ec Solutions) service which involves drawing on capabilities of

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e.

f.

g.

the Group in providing packages of services in order to serve that market. We also commenced
operations of our “Southern Gate” global logistics center in Okinawa, and in that regard have beenpromoting sales of solutions that provide one-stop services involving everything from manufacturing tostorage and delivery, targeting business operators involved in cross-border mail order and other businessgeared to overseas markets.
For our corporate clients, we forged ahead with efforts to increase sales of our “Yamato Cloud Depot”
service which enables them to make use of our 4,000 TA-Q-BIN centers nationwide as hubs for their own
business operations. In developing such solution sales, we are supporting the growth of customer
businesses by helping them boost salesforce productivity and reduce back office workloads at their sales
locations, drawing on business resources of the Yamato Group.
In our business looking toward overseas markets, we have been actively promoting efforts to build
networks in Southeast Asia, through initiatives that included forging a business and capital alliance with amajor parcel delivery company in Malaysia. We have been working to strengthen our international
logistics operations which offer added-value in growing Asian markets, thereby forging ahead withexpansion of our international cold chain business. For instance, during the fiscal year ended March 31,
2016, we launched sales of the “International Cool TA-Q-BIN” service looking toward Singapore andMalaysia, following on such initiatives in Hong Kong and Taiwan.
We have been taking aggressive action to reduce costs through efforts that include implementing
thorough controls on costs linked to operating volumes and also pursuing measures to improve
productivity, amid a deteriorating external cost environment marked by a tightening labor market.

Summary of each operating segment● Delivery
The delivery volumes of TA-Q-BIN and Kuroneko DM-Bin services are as follows.
Category

Fiscal 2015

Fiscal 2016

(Million parcels/units)
Growth (%)

ChangeTA-Q-BIN

1,622

1,731

109

6.7

Kuroneko DM-Bin

1,901

1,536

(364)

(19.2)

Results shown for Kuroneko DM-Bin in the fiscal year ended March 31, 2015 are those of the Kuroneko Mail
service.
a.
b.

c.

d.

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.
In the growing mail order market, we have been actively engaging in efforts to expand sales. For instance,
we have launched the two new “TA-Q-BIN Compact” and “Nekopos” services which enable customers tosend small parcels simply at reasonable fees, and have also been pursuing alliances with multiple flea
market websites. We also launched our new “Kuroneko DM-Bin” mailbox posting service which takes theplace of our Kuroneko Mail service which was discontinued as of the previous fiscal year, thereby
enabling us to respond to demand in areas such as direct mail sent by corporate clients. Aiming to
improve the convenience of customers receiving parcels, we collaborated with a major communications
application to establish an environment whereby customers can easily receive advanced notice ofscheduled delivery times and use the parcel inquiry service. In addition, we have entered into a basic
agreement looking toward establishment of a joint venture to set up and operate an open-type
infrastructure of parcel lockers in conjunction with a major French manufacturer of postal service-related
equipment.
With respect to corporate clients, we have been leveraging our front-line business network to gather
customer information to make use of in actively proposing solutions tailored to our clients’ management
objectives. We worked to boost profitability by making proposals that provide high added value using theGroup’s business resources. Moreover, we also continue to promote measures that would ensurecollection of adequate fees for the task of providing consistent quality with respect to deliveries.
In our business geared toward revitalizing communities, we have been taking steps to improve services
for residents by collaborating with numerous municipalities and companies in efforts to provide support
with regard to helping those who face difficulties doing their shopping and watching over elderly residents.
Moreover, we have also been helping to revitalize local industry through initiatives that include lending
support for enabling communities to sell more locally produced products by offering swift delivery to Asiaof perishable goods and other agricultural products in a manner that ensures that they stay fresh.

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e.

Operating revenue amounted to 1,111,867 million yen, up 0.8% from the year-ago period due to anincrease in TA-Q-BIN delivery volume primarily among large operators of mail-order businesses. As forprofits, operating income amounted to 38,190 million yen, down 3.6% from the year-ago period as growthof volumes in the new services failed to make up for the adverse impact of discontinuing the Kuroneko
Mail service.

● BIZ-Logistics
a. 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,maintenance and recall handling functions, cleansing functions for medical devices and internationaltransportation functions.
b. For the mail-order industry, we are offering one-stop services involving various types of logistical support
in line with customer needs, including support for facilitating everything from placing and accepting orders
to visual monitoring of inventories and enabling speedier shipments. In the fiscal year ended March 31,
2016, volume handled increased largely due to the progress in gaining new customers.
c. With respect to our product maintenance and recall services, we have been developing integrated
services where we handle collection, repair and returns of faulty products, while also expanding total
support services for dealing with corporate product recalls. In the fiscal year ended March 31, 2016, these
operations generated firm revenues due to factors that included increased use of the “Kuroneko Extended
Warranty Service” particularly among large mail-order and consumer electronics business operators.
d. 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 ended
March 31, 2016, the segment achieved revenue growth amid a steadily increasing volume of businessmainly from existing customers.
e. Operating revenue amounted to 106,822 million yen, up 2.9% from the year-ago period due to favorable
results generated from mail-order services and services related to medical devices. Operating income
was 4,905 million yen, up 4.8% from the year-ago period.
● Home Conveniencea. In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through lifetime lifestyle support businesses and corporate
enterprise support business that draw on the Yamato Group’s nationwide network.
b. With respect to individual customers, the Yamato Group operated a variety of services to assist in daily
life such as the “Raku Raku Household TA-Q-BIN” service for delivering large furniture items and home
appliances and moving-related services. In the fiscal year ended March 31, 2016, services in this area
gained more widespread use as we aggressively forged ahead with efforts to increase sales. Initiatives inthis regard included the addition of home appliance cleaning and other offerings to the list of options
provided through the “Comfortable Lifestyle Support Service,” which aims to help customers resolve
everyday inconveniences associated with house cleaning, home organization and storage, and collectionof unwanted items.
c. For our corporate clients, we have been developing our “Technical Network Business” where we combine
the networks of the Yamato Group and our construction and installation contractors so that we canprovide one-stop support in handling everything from household equipment delivery and set-up, toinstallation and maintenance of such equipment, as well as business support services such as
office-related services and procurement services for sourcing goods. In the fiscal year ended March 31,
2016, the segment achieved revenue growth amid a strong showing from our office-related services.
d. Operating revenue amounted to 48,981 million yen, up 1.0% from the year-ago period due to favorable
volumes of use of office-related services and procurement services. As for profits, the segment posted an
operating income of 1,146 million yen, up 87.0% from the year-ago period as a result of initiatives toimprove rates of capacity utilization on weekdays.
● e-Businessa. In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively conducting solution platform business that combine logistics technology
and financial technology with information technology. In addition, to help accelerate growth of YamatoGroup businesses, we have been moving beyond conventional information technologies through efforts

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b.

c.

d.

e.

geared to promoting use of emerging technologies that harness artificial intelligence (AI), the Internet ofthings (IoT) and other such innovations.
With respect to services for assisting with order-acceptance and dispatching operations, the YamatoGroup provides a “Web-based Shipment Control” that comprehensively supports such operations as
dispatch information processing, printing of delivery slips, and freight tracking. In the fiscal year ended
March 31, 2016, use of this service increased particularly among our existing large-lot customers, against
a backdrop that included mail-order market growth.
For telecommunications equipment business operators and other customers whose needs involve
managing products on an individual basis, the Yamato Group has been developing its “setup and logistics
solutions business” which offers services that involve bringing tasks of affixing data to products and partial
processing of merchandise into alignment with information system functions such as serial
acceptance/dispatch control in warehouses and inventory tracking. In the fiscal year ended March 31,
2016, these services attracted favorable volumes of use primarily among our customers who are newentrants in the telecommunications equipment business.
In its e-money related services, the Yamato Group offers solutions through collaboration between thee-Business and the Financial Business, and provides services that involve installation and operation of“Multi e-money Settlement Terminals” that allow settlements in multiple types of e-money using a single
device. During the fiscal year ended March 31, 2016, the segment achieved revenue growth due toincreased sales from the e-money settlement system geared toward the amusement industry.
Operating revenue amounted to 43,357 million yen, up 7.1% from the year-ago period due to factors suchas progress made in expanding sales involving e-money settlement systems, as well as greater volume ofbusiness in the “setup and logistics solutions business.” Operating income was 9,009 million yen, up
16.1% from the year-ago period mainly due to the continued progress in controlling system development
costs.

● Financial
a. 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, B2B transaction
settlement, and vehicle leasing.
b. 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 and our e-money settlement services. In thefiscal year ended March 31, 2016, we provided a wide range of payment settlement services to ourcustomers and concurrently worked to increase profitability by promoting use of our “Kuroneko Web
Collect” and “Kuroneko Pay After Delivery” services to our customers who use the “TA-Q-BIN Collect”
service. With our e-money related services, we persisted in our efforts to increase sales generated by our“Multi e-money Settlement Terminals” rental service.
c. In the lease services business, we achieved revenue growth by making proposals that involve totalsolutions related to the Group’s network and vehicles. In addition to financial leasing primarily involving
trucks, this also includes leasing of previously-owned cars linked with purchase upon lease expiration or
re-use of such vehicles.
d. Operating revenue amounted to 72,455 million yen, up 8.7% from the year-ago period due to increased
use of our payment settlement for operators of mail-order businesses and other factors such as anincrease in contracts for truck leases in the lease services business. As for profits, operating income was
8,685 million yen, down 2.9% from the year-ago period largely due to lackluster results with respect tovolume handled through our mainstay TA-Q-BIN Collect service.
● Autoworks
a. In the Autoworks Business, the Yamato Group develops its “24-hour-a-day, 365-day-a-year service thatenables customers to service their vehicles without stopping operation,” thereby providing value tologistics operations and logistics service providers primarily in the form of “improvement of vehicle
maintenance convenience” and “reduced maintenance expenses.” Furthermore, to better provide
one-stop service solutions geared toward customer business operations, we have added services for“maintaining and safeguarding logistics facilities and equipment, and improving such workplaceenvironments,” along with “offering insurance plans tailored to customer risk management needs” which
provide coverage for such assets.

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b.

c.

In the fiscal year ended March 31, 2016, we took steps to improve quality through initiatives that included
initiating operations of the new Superworks Kobe Plant business location and further strengthened ourbusiness network, and newly launching sales of our “distribution facilities management” services which
provide support to customers with respect to managing logistics facilities and equipment. We also
aggressively marketed out “Repairworks” services entailing periodic on-site customer visits.
Operating revenue amounted to 24,458 million yen, down 9.9% from the year-ago period mainly due tolower unit price of fuel. Operating income was 3,372 million yen, down 9.7% from the year-ago period.

● Othera. 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. In the fiscal year ended March 31, 2016, use of the service
steadily increased partially as a result of having developed new freight settlement options and otherwise
taking steps to heighten customer convenience made possible through the service, and also due tofavorable results from existing service offerings.
b. Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies increased 84.1% from the year-ago period to 2,107 million yen.
CSR Initiatives
a. The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In that regard, we have been carrying out our “Zero Accident Campaign” which is a safety
campaign deployed horizontally throughout the entire Group including our TA-Q-BIN operators overseas.
Furthermore, we held the “Yamato Transport Nationwide Safety Competition,” and engaged in efforts toenhance the skills of the Group’s professional drivers with respect to safe vehicle operation, while alsoheightening safety awareness and improving driving skills on a Group-wide basis. In addition, since 1998
we have been holding our “Safety Classes for Children,” through which we convey the importance oftraffic safety, in day care facilities, kindergartens and elementary schools across Japan. A total of morethan 2.80 million people have now participated.
b. 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. In the fiscal year ended March 31, 2016, we received the “Modal Shift Excellent Business
Entity Award (grand prize)” at the “13th Annual Awards Ceremony for Excellent Business Entities Working
on Modal Shift” in recognition of our efforts to increasingly shift to more suitable modes of transportation
by making use of railways when shipping freight originating in the Kyushu region and bound for the Kanto
region. 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 220 thousand participants so
far.
c. 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 partin training to acquire skills and knowledge necessary for employment.
d. Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on “Creating Shared Value (CSV).” In the fiscal year ended March 31, 2016, we
promoted initiatives for improving lifestyle services offered to residents of local communities andrevitalizing local industry. For instance, this included launching our “combined passenger-cargo”
operations where we make use of scheduled-route passenger buses to transport TA-Q-BIN items withincertain zones. Moreover, we continued to engage in efforts geared toward extending a diverse range ofservices leveraging the business resources of the Yamato Group, such as by helping to watch overelderly residents and lending support for community revitalization efforts. As a result, we have worked
with government bodies on 1,459 such endeavors thus far.

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Outlook for fiscal 2017
Looking ahead at the economy, business conditions in Japan are poised to remain on a path of gradual
recovery as the situation improves with respect to corporate earnings and employment. On the other hand, we
anticipate an ongoing scenario of uncertainties ahead amid factors that include adverse effects of volatility infinancial and capital markets, and concerns regarding the prospect of flagging economies overseas.
In this environment, the Yamato Group will pursue efforts in the Delivery Business to provide added
convenience to customers who are picking up parcels, while also continuing with efforts geared to ensuringthat we collect adequate fees for the task of providing consistent quality with respect to deliveries. In the
non-delivery businesses, we will reinforce solution sales and develop a business model for generating a highlevel of added value by leveraging the Group’s business resources.
On the cost front, we will continue to control costs in line with operating volumes. Nevertheless, operating costs
are bound to head higher amid developments that include increasing retirement benefit obligations due tofalling yields on government bonds and other such factors, and a growing size-based enterprise tax burden asa result of the government’s tax reform plan.
We expect operating revenue will be 1,460.0 billion yen, with operating income at 64.0 billion yen, ordinary
income at 64.5 billion yen and profit attributable to owners of parent at 38.5 billion yen.
(2) Analysis of financial position
a. Analysis of assets, liabilities, net assets and cash flows
Total assets were 1,089,436 million yen as of March 31, 2016, up 6,905 million yen from the end of theprevious fiscal year. The major factor in this was an increase in notes and accounts receivable - trade of
9,548 million yen.
Liabilities increased 34,249 million yen to 545,581 million yen from the end of the previous fiscal year. The
major factors in this were an increase in loans payable of 28,128 million yen and issuance of bonds
payable of 20,000 million yen.
Total net assets were 543,855 million yen, down 27,344 million yen from the end of the previous fiscal year.
The major factors included the recording of profit attributable to owners of parent of 39,424 million yen, thepayment of dividends of surplus of 10,674 million yen and the purchase of treasury shares amounting to
50,006 million yen.
Accordingly, the equity ratio decreased by 2.8% from the end of the previous fiscal year to 49.4%.
Net cash provided by operating activities amounted to 49,715 million yen, which is a decrease of 42,904
million yen compared with the year-ago period. The major factor here included a decrease in accrued
consumption taxes of 48,828 million yen.
Net cash used in investing activities was 30,230 million yen. Compared with the year-ago period, theamount of net cash used decreased by 28,255 million yen. This was largely attributable to expenditures of
37,426 million yen used for the purchase of property, plant and equipment, which is a decrease of 16,881
million yen compared with the year-ago period, and also reflects proceeds from sales of property, plantand equipment of 17,273 million yen, which is an increase in proceeds of 14,734 million yen comparedwith the year-ago period.
Net cash used in financing activities was 16,833 million yen. Compared with the year-ago period, theamount of net cash used increased by 9,664 million yen. This is largely attributable to expenditures of
50,013 million yen used for the purchase of treasury shares, which is an increase of 19,420 million yen
compared with the year-ago period.
As a result of the above, cash and cash equivalents were 249,261 million yen as of March 31, 2016, up
2,210 million yen from the end of the previous fiscal year.

- 10 -

b.

Trends in cash flows
147th term
Fiscal 2012

148th term
Fiscal 2013

149th term
Fiscal 2014

Equity ratio (%)

56.0

56.2

Equity ratio on market value basis (%)

59.8

77.6

Ratio of interest-bearing debts to cash flows

1.3

Interest coverage ratio

57.0

Note:

-

150th term
Fiscal 2015

151st term
Fiscal 2016

53.4

52.2

49.4

90.3

105.8

82.2

1.3

1.3

1.5

3.5

75.8

110.5

139.8

62.8

Equity ratio: Equity/total assets
Equity ratio on market value basis: Stock market capitalization/total assets
Ratio of interest-bearing debts to cash flows: Interest-bearing debts/operating cash flows
Interest coverage ratio: Operating cash flows/interest payment
Every indicator is calculated based on consolidated financial figures.
Stock market capitalization is calculated by multiplying closing stock price at fiscal year-end by the number of shares issued at
fiscal year-end (excluding treasury shares).
Operating cash flows represent cash flows from operating activities in the consolidated statements of cash flows.
Interest-bearing debts represent the liabilities in the consolidated balance sheet on which interest is paid.
Interest payment represents interest expenses paid in the consolidated statements of cash flows.

(3) Basic profit distribution policy and dividends for fiscal 2016 and 2017
As a pure holding company, the Company conducts its business with the goal of maximizing the entire Group’s
corporate value. Accordingly, with respect to the dividends from surplus, the Company’s policy is to pay
dividends with the goal of having a payout ratio of 30% of profit attributable to owners of parent. Retained
earnings are used to facilitate the growth of the Group as a whole through capital expenditure—to strengthen
the network, one of our management resources, and develop new businesses and products, for example—andinvestments are aimed at raising the corporate value in the future. Finally, the use of treasury shares isstrategically positioned for flexible utilization, such as M&A, as a part of our capital policy.
For the fiscal year under review, we plan to pay 15 yen dividend per share (comprising ordinary dividends of 13
yen and commemorative dividends of 2 yen to mark the 40th anniversary of TA-Q-BIN), bringing the annual
dividend to 28 yen, of which 13 yen has already been disbursed as an interim dividend.
We will decide on dividends for the next fiscal year based on profit attributable to owners of parent inaccordance with our basic profit distribution policy.

- 11 -

2. Status of the Corporate GroupThe Yamato Group consists of Yamato Holdings Co., Ltd. (the Company), 47 subsidiaries and 15 affiliates. The main
businesses are Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial
business, Autoworks business, and other services related to these businesses.
The relationship among contents of business, the position of each subsidiary or affiliate in aforementioned
businesses and reportable segments are as follows:Businesssegment
DeliveryContent of business and main products

Main companies

TA-Q-BIN, Cool TA-Q-BIN, TA-Q-BIN Time Service,Worldwide Delivery Service, Golf, Ski & Airport Round Trip
TA-Q-BIN, Super-Speed TA-Q-BIN, Kuroneko DM-Bin,domestic air cargo transport and Express Delivery Service

Yamato Transport Co., Ltd.; Okinawa Yamato Transport
Co., Ltd.; Yamato Global Express Co., Ltd.; Express
Network Co., Ltd.; Yamato Dialog & Media Co., Ltd.;
Yamato Contact Service Co., Ltd.; Yamato Staff Supply
Co., Ltd.*1; Yamato (China) Transport Co., Ltd.; andYamato Transport (HK) Ltd.
(Total: 9 companies)
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.; YAMATO
TRANSPORT EUROPE B. V.; Yamato International
Logistics Co., Ltd.; Yamato International Logistics (HongKong) Ltd.; TAIWAN YAMATO INTERNATIONALLOGISTICS INC.; YAMATO TRANSPORT (S) PTE. LTD.;
YAMATO TRANSPORT (M) SDN. BHD.; and 19 othercompanies*2(Total: 32 companies)
Yamato Home Convenience Co., Ltd.

BIZ-Logistics

Logistics, medical products distribution services,
Maintenance Support Service, recall support service,international intermodal transportation service andoverseas lifestyle support services

Home
Convenience

Pickup, delivery and installation of household goods andelectric appliances, moving and lifestyle support services,and merchandising services
System development, sales of system package solutions,distribution information services and information security
service
TA-Q-BIN Collect service, Internet total settlement service,
B2B logistics settlement service and comprehensive leaseservices(Total: 1 company)
Yamato System Development Co., Ltd.; Yamato Web
Solutions Co., Ltd.; and one other company(Total: 3 companies)
Financial
Yamato Financial Co., Ltd.; Yamato Credit & Finance Co.,
Ltd.; Yamato Lease Co., Ltd.; Yamato Payment Service(HK) Ltd.; and one other company(Total: 5 companies)
Autoworks
Vehicle maintenance business, fuel sales and nonlife
Yamato Autoworks Co., Ltd.; Yamato Autoworks Iwate Co.,
insurance agent businessLtd.; Yamato Autoworks Hokushinetsu Co., Ltd.; Yamato
Autoworks Shikoku Co., Ltd.; Yamato Autoworks Okinawa
Co., Ltd.
(Total: 5 companies)
Other
JITBOX Charter and shared services
Yamato Holdings Co., Ltd.; YAMATO ASIA PTE. LTD.;
BoxCharter Co., Ltd.; Yamato Box Charter Co., Ltd.;
Yamato Management Service Co., Ltd.; Yamato Multi
Charter Co., Ltd.; Kobe Yamato Transport Co., Ltd.; andone other company(Total: 8 companies)*1
From the fiscal year ended March 31, 2016, Yamato Staff Supply Co., Ltd. has been reclassified for inclusion in the Delivery Businesssegment, from the Other segment previously.
*2
The business and capital alliance with GD Express Carrier Bhd. has brought 12 additional companies into the Yamato Group.
e-Business- 12 -

The business structure diagram of the corporate group is as follows:
YAMATO ASIA PTE. LTD.

Yamato Holdings Co., Ltd.

Okinawa Yamato Transport Co., Ltd.

Mutualtransport

Yamato Global Express Co., Ltd.
Express Network Co., Ltd.

Controlling business in Southeast Asia

Delivery Business

Operations
consignment

Yamato Transport Co., Ltd.

Yamato Contact Service Co., Ltd.

Mutual transport
Yamato (China) Transport Co., Ltd.
Yamato Transport (HK) Ltd.

Mutualtransport

Planning and proposal
Packing materials
BIZ-Logistics Business
Domestic

Mutualtransport

Transport, collection andlease

Merchandise marketing

Home Convenience Business

Financial BusinessYamato Home Convenience Co., Ltd.

Yamato Financial Co., Ltd.
Yamato Credit & Finance Co., Ltd
Yamato Lease Co., Ltd.
Yamato Payment Service (HK) 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 InstituteCo., Ltd.
Konan Industry Co., Ltd.

System development
and contract calculation

Overseas
YAMATO TRANSPORT U. S. A., INC.
YAMATO TRANSPORT EUROPE B. V.
Yamato International Logistics Co., Ltd.
Yamato International Logistics (HongKong) Ltd.
TAIWAN YAMATO INTERNATIONALLOGISTICS INC.
YAMATO TRANSPORT (S) PTE. LTD.
YAMATO TRANSPORT (M) SDN. BHD.

Yamato Staff Supply Co., Ltd.
Yamato Dialog & Media Co., Ltd.

President Collect Service Co., Ltd.

System Development
and contract calculation
e-BusinessYamato System Development Co., Ltd.
Yamato Web Solutions Co., Ltd.
System development
and contract calculation

YAMATO LOGISTICS INDIA PVT. LTD.
18 other companies

ISS Co., Ltd.

System development
and contract calculation
Fuel, transport equipment and vehicle maintenance
Autoworks BusinessYamato Autoworks Co., Ltd.
Yamato Autoworks Iwate Co., Ltd.
Yamato Autoworks Shikoku Co., Ltd.

Yamato Autoworks Hokushinetsu Co., Ltd.
Yamato Autoworks Okinawa Co., Ltd.

Systemdevelopment
and contract
calculation

Fuel, transport equipment and vehicle
maintenanceAccounting operations support
Personnel affairs operations support
Yamato Management Service Co., Ltd.

Other
Sales support
BoxCharter Co., Ltd.

The company that submits
consolidated financial statements

Sales
supportYamato Box Charter Co., Ltd.
Yamato Multi Charter Co., Ltd. Mainline
Kobe Yamato Transport Co., Ltd. transport Swan Co., Ltd.

Consolidated subsidiaries- 13 -

Non-consolidated subsidiaries oraffiliates

3. Management Policy(1) Basic corporate management policies, medium- to long-term corporate management strategies andtarget management indicators
With regard to the basic corporate management policies and medium- to long-term corporate management
strategies, disclosure is omitted as there have been no significant changes to the contents since they weredisclosed in the Consolidated Financial Results for the Year Ended March 31, 2014 (disclosed on April 30,2014).
While expectations are rising for the recovery of the Japanese economy, given that uncertain conditions still
remain, the Yamato Group aims to achieve the quantitative management targets indicated in “Outlook for fiscal
2017” on page 10.
Consolidated Financial Results for the Year Ended March 31, 2014 may be viewed at the following websites:(Website of the Company)
http://www.yamato-hd.co.jp/(Website of the Tokyo Stock Exchange (“Listed Company Information” page))
http://www.jpx.co.jp/listing/co-search/index.html(2) Issues to be addressed by the Company
With the aim of achieving satisfaction among our shareholders, customers, society and employees, the YamatoGroup will pursue the following strategies on the basis of the long-term business plan “DAN-TOTSUManagement Plan 2019” and the medium-term business plan “DAN-TOTSU Three-Year Plan STEP” initiated in
April 2014.
a. 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,” “Atsugi
Gateway” and “Okinawa International Logistics Hub” facilities. Furthermore, we will work toward creating
and developing a business model that can generate a high level of added value that improves logistics
speed, quality and costs, by fusing our business resources in areas such as information, logistics andtransaction settlement within this network.
b. With respect to establishing business foundations in overseas markets primarily in Asia, we will promote
cross-border opportunities leveraging the Yamato Group’s capabilities such as those available through the“Okinawa International Logistics Hub.” We will make the notion of a borderless logistics network thatprovides value-added functions a reality by engaging in efforts to expand our cold chain businessprimarily in Asia. In part, we have launched a project in collaboration with international standards-settingorganizations in March 2016 geared to establishing the world’s first international standard pertaining tochilled and frozen goods delivery services.
c. With respect to the mail-order market which is poised for further growth, we will engage in aggressive
marketing efforts involving our “TA-Q-BIN Compact” and “Nekopos” services, and address emerging
needs with respect to small-parcel delivery. We will also continue to provide highly convenient services toour corporate customers who used our Kuroneko Mail service for sending direct mail and other items, byoffering them our new “Kuroneko DM-Bin” mailbox posting service. In addition, we will ramp up sales ofour “YES!” (Yamato Ec Solutions) service and leverage the Yamato Group’s business resources with theaim of further supporting growth in the mail-order market by embarking on new entries involving mailorder business operators while helping them expand their operations.
d Our efforts to forge a robust corporate culture will involve placing top priority on ensuring levels of qualitythat instill customer confidence while increasing employee satisfaction, strengthening both legal andfinancial governance, and pursuing CSR initiatives.
e. We will place top priority on maintaining service quality levels as we strive to heighten productivity andcontrol costs across every aspect of Group operations, including collection and delivery, back-office andsorting operations. Meanwhile, for the proprietary services and value-added business models provided by
the Yamato Group, we will increasingly enhance our ability to generate profits by promoting our strategy
of pricing adequately in line with costs.

- 14 -

f.

g.

In addressing the issue of the labor shortage as it extends into the future, we will promote diversity
initiatives and secure new sources of labor by creating a greater variety of job formats and developing agreater range of opportunities that make it possible for women, seniors, foreign nationals and others toactively flourish in the workplace.
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.

4. 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.

- 15 -

5. Consolidated Financial Statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2015

As of March 31, 2016

AssetsCurrent assets
Cash and deposits

247,398

249,593

Notes and accounts receivable - trade187,833

197,382

Accounts receivable - installment

42,00743,647

Lease investment assets

44,94848,894Merchandise and finished goods

721

738

Work in process

512

184

Raw materials and supplies

2,101

1,935

Deferred tax assets

15,687

14,907

Other

26,333

27,777

Allowance for doubtful accounts(1,338)(1,079)Total current assets

566,205

583,982

334,119

326,888

Accumulated depreciation(185,622)(189,315)

Buildings and structures, net

148,497

137,572

55,44856,006

Accumulated depreciation(35,706)(38,920)

Machinery and equipment, net

19,741

17,085

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

Machinery and equipment

Vehicles

194,198

196,054(176,205)(178,128)

17,992

17,925

Land

187,964

176,139

Lease assets

24,02815,410

Accumulated depreciation
Vehicles, net

Accumulated depreciation(17,181)(6,838)

Lease assets, net

6,846

8,572

Construction in progress

16,02523,538

Other

85,372

91,936

Accumulated depreciation(62,338)(67,128)

Other, net

23,03324,807420,101

405,641

12,646

14,525

Total property, plant and equipment
Intangible assets
Software
Other

4,953

6,434

Total intangible assets

17,60020,960- 16 -

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Investments and other assets
Investment securities* 34,567* 31,498

Long-term loans receivable

1,040

1,009

Lease deposits

17,901

16,452255

54

21,97727,007

Other

3,998

3,737

Allowance for doubtful accounts(1,116)(908)

Total investments and other assets

78,62478,851

516,325

505,454

1,082,531

1,089,436

Notes and accounts payable - trade157,479

148,456

Short-term loans payable

34,44355,933Current portion of bonds with subscription rights toshares9,660—

Lease obligations

2,733

2,509

Income taxes payable

20,024

19,782

Deferred installment income

5,655

5,894

Provision for bonuses

30,23630,676

Other

96,80084,844

Total current liabilities

357,034

348,097—

20,000Long-term loans payable

83,876

90,515

Lease obligations

4,655

5,387

Deferred tax liabilities

3,947

2,799

Net defined benefit liability

53,02371,551

Net defined benefit asset
Deferred tax assets

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Bonds payable

Other
Total non-current liabilities
Total liabilities- 17 -

8,794

7,229

154,297

197,483

511,331545,581(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Net assets
Shareholders’ equity
Capital stock

127,234

127,234

Capital surplus

70,20936,813Retained earnings

395,352

402,375

Treasury shares(43,007)(29,075)

Total shareholders’ equity

549,789

537,348

Valuation difference on available-for-sale securities

13,8479,790

Foreign currency translation adjustment

1,169

750

Remeasurements of defined benefit plans

715(10,067)

15,731

473

5,678

6,034

571,199543,855

1,082,531

1,089,436

Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 18 -

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Operating revenue

1,396,708

1,416,413

Operating cost

1,290,714

1,306,200

Operating gross profit

105,993

110,212

21,90522,912

Provision for bonuses

826

884

Retirement benefit expenses

957

1,061

Commission fee

3,788

4,586

Taxes and dues

3,804

5,632

Provision of allowance for doubtful accounts

373

201

Depreciation

2,123

2,125

Other

5,050

6,213

Total selling, general and administrative
expenses

37,046

41,672

68,947

68,540Interest income

89

138

Dividend income

584

694

Foreign exchange gains

520—

Gain on sales of vehicles

297

425

Rent income

295

304

Other

1,183

893

Total non-operating income

2,969

2,456

398

547

Foreign exchange losses

—

317

Other

629

705

Total non-operating expenses

1,027

1,570

70,88969,426

Gain on sales of non-current assets

410

354

Gain on sales of investment securities

653

Compensation for damage received

257

—

Other

515

10

Total extraordinary income

1,190

418

Selling, general and administrative expenses
Personnel expenses

Operating income
Non-operating income

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income- 19 -

(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Extraordinary loss
Loss on retirement of non-current assets

412

Impairment loss

*

1,791

286
*

1,154

Loss on litigation

704

—

Other

13

324

Total extraordinary loss

2,921

1,766

Profit before income taxes

69,157

68,078

Income taxes - current

29,81427,434

Income taxes - deferred

1,739

980

Total income taxes

31,55428,414

Profit37,602

39,663

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 20 -

69

238

37,53339,424

(Consolidated statement of comprehensive income)(Millions of yen)
For the year ended
March 31, 2015
Profit

For the year ended
March 31, 2016

37,602

39,663

Valuation difference on available-for-sale securities

5,370(3,975)

Foreign currency translation adjustment

826

(418)

Remeasurements of defined benefit plans, net of tax

2,442(10,787)

8,640* (15,181)

46,24324,48245,877

24,165365

316

Other comprehensive income

Total other comprehensive income*

Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 21 -

(3) Consolidated statement of changes in equity
For the year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

100,863

371,965

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equityTreasury shares(56,079)

543,984(4,080)127,234

100,863(4,080)367,884(56,079)

539,903

Changes of items during
periodDividends of surplus(10,065)(10,065)

Profit attributable to ownersof parent

37,53337,533Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesChange in ownershipinterest of parent related totransactions with
non-controlling interests(30,587)(30,587)(404)

10,745

10,340(31,507)

31,507

—

1,257

1,406

2,664

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—(30,654)

27,467

13,071

9,885

127,234

70,209395,352(43,007)549,789

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

8,769

342

(1,717)

7,395

8,792

560,172(17)(4,097)

8,775

556,074

Cumulative effects ofchanges in accounting
policies
Restated balance

8,769

342

(1,717)

7,395

Changes of items during
periodDividends of surplus(10,065)

Profit attributable to ownersof parent

37,533Purchase of treasury shares(30,587)

Disposal of treasury shares

10,340Retirement of treasury
shares—Change in ownershipinterest of parent related totransactions with
non-controlling interests

2,664

Net changes of items otherthan shareholders’ equity

5,077

826

2,432

8,336

(3,097)

5,239

Total changes of items during
period

5,077

826

2,432

8,336

(3,097)

15,124

Balance at end of current
period13,847

1,169

715

15,731

5,678

571,199- 22 -

For the year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

127,234

Retained earnings

70,209Total shareholders’equityTreasury shares

395,352(43,007)549,789

Changes of items during
periodDividends of surplus(10,674)(10,674)

Change of scope of
consolidation

87

87

39,42439,424

Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares(1,636)Retirement of treasury
shares(30,915)

Change in ownershipinterest of parent related totransactions with
non-controlling interests(21,815)(50,006)(50,006)

11,207

9,570

52,731

—

(843)

(843)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period—(33,396)

7,022

13,932(12,441)

127,234

36,813402,375(29,075)

537,348

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

13,847

1,169

715

15,731

5,678

571,199

Changes of items during
periodDividends of surplus(10,674)

Change of scope of
consolidation

87

Profit attributable to ownersof parent

39,424Purchase of treasury shares(50,006)

Disposal of treasury shares

9,570

Retirement of treasury
shares—Change in ownershipinterest of parent related totransactions with
non-controlling interests(843)

Net changes of items otherthan shareholders’ equity(4,057)(418)(10,783)(15,258)355(14,903)

Total changes of items during
period(4,057)(418)(10,783)(15,258)355(27,344)

Balance at end of current
period9,790

750(10,067)

473

6,034

543,855- 23 -

(4) Consolidated statement of cash flows(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Cash flows from operating activities
Profit before income taxes

69,157

68,078Depreciation

46,07846,758

Impairment loss

1,791

1,154

Increase (decrease) in net defined benefit liability

2,795

2,376

Increase (decrease) in provision for bonuses

676

443

Interest and dividend income

(673)

(833)

Interest expenses

648

778

Loss (gain) on sales of non-current assets

(410)

(195)

Loss on retirement of non-current assets

412

286

Loss (gain) on sales of investment securities

(6)

(53)

Decrease (increase) in notes and accounts
receivable - trade(11,898)(15,422)

Decrease (increase) in inventories

(46)

473

Increase (decrease) in notes and accounts payable trade(14,665)(9,137)

Other, net

29,087(15,810)

Subtotal

122,947

78,897

Interest and dividend income received

697

837

Interest expenses paid

(662)

(791)

Income taxes paid

(30,361)(29,227)

Net cash provided by (used in) operating activities

92,62049,715

Cash flows from investing activities
Payments into time deposits(60)(1,451)

Proceeds from withdrawal of time deposits

506

1,484

Purchase of property, plant and equipment(54,308)(37,426)

Proceeds from sales of property, plant andequipment

2,538

17,273Purchase of investment securities(1,021)(1,845)14

109(1,489)(1,150)

Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable

1,449

1,059

Other payments(7,521)(10,350)

Other proceeds
Net cash provided by (used in) investing activities- 24 -

1,407

2,067

(58,485)(30,230)

(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(1,576)

5,917

Repayments of finance lease obligations(5,180)(3,209)Proceeds from long-term loans payable

60,40038,931

Repayment of long-term loans payable(19,391)(16,766)

Proceeds from issuance of bonds—

19,933Purchase of treasury shares(30,592)(50,013)

Cash dividends paid

(10,065)(10,675)

Cash dividends paid to non-controlling interests

(81)

(45)

Other, net

(681)

(904)

Net cash provided by (used in) financing activities(7,168)(16,833)

690

(654)

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

27,656

1,997

Cash and cash equivalents at beginning of period

219,395

247,051

Increase in cash and cash equivalents from newly
consolidated subsidiary—213

Cash and cash equivalents at end of period*1- 25 -

247,051*1

249,261(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: 40
Major consolidated subsidiaries are as described in “2. Status of the Corporate Group.”
Yamato Dialog & Media Co., Ltd. is included in the scope of consolidation from the fiscal year underreview due to their increased materiality.
(2) Non-consolidated subsidiaries, etc.
YAMATO LOGISTICS INDIA PVT. LTD. 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 influenceon the consolidated financial statements.

2.

Application of equity method
The equity method is not applied to YAMATO LOGISTICS INDIA PVT. LTD. and certain other non-consolidated
subsidiaries, along with YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliated companies. The
net income and the retained earnings of these companies are immaterial and, even taken together as a group,
they do not exert a significant influence on the consolidated financial statements.

3.

Closing date of consolidated subsidiaries
Of consolidated subsidiaries, YAMATO TRANSPORT U.S.A., INC., and other ten overseas subsidiaries have
December 31 as their financial year end. Financial statements as of this closing date were used in the
preparation of the consolidated financial statements. However, the consolidated figures have been adjusted as
required to reflect significant transactions occurring between December 31, 2015 and March 31, 2016 that isthe consolidated closing date.

4.

Accounting policies(1) Valuation basis and methods for principal assets
a. Securities
Securities held-to-maturity
Calculated based on the amortized cost method (straight-line method).
Available-for-sale securities
Securities with fair market value:
Stated at the fair market value based on the quoted
market price as of the fiscal year end (valuationdifferences are recognized in net assets; the cost of
securities sold is calculated by the moving-averagemethod).
Stated at the cost by moving-average method.
Securities without fair market value:b. Inventories
Stated at the cost by first-in first-out method (for the value stated in the balance sheet, the book value
is written down based on the decreased profitability).
(2) Depreciation and amortization methods of major depreciable or amortizable assets
a. Property, plant and equipment (excluding lease assets):
Computed using the declining-balance method.
Meanwhile, the straight-line method is adopted forbuildings (excluding fixtures) acquired on or after April 1,
1998.

- 26 -

b. Intangible assets (excluding lease assets):c. Lease assets:

For overseas consolidated subsidiaries’ assets, thestraight-line method based on estimated useful lives is
adopted.
Computed using the straight-line method. Meanwhile,software is amortized by the straight-line method overthe estimated useful life of five years.
Computed using the straight-line method where theuseful life of lease assets shall be equal to the lease
period and their residual value shall be zero.

(3) Accounting standards for significant provisions
a. Allowance for doubtful accounts
The allowance for doubtful accounts is provided to prepare for loss from uncollectible credits.
For ordinary receivables, the amount is estimated using the rate based on the historical bad debt
experience. For special receivables with higher uncertainty of collectivity is considered on individual
cases, and prospective uncollectible amount is provided.
b. Provision for bonuses
The provision for bonuses is provided for payment of bonuses to employees based on an amount
expected to be paid.
This provision is not applicable for overseas subsidiaries.
(4) Method of accounting for retirement benefits
a. Method of attributing expected retirement benefit to periods
In calculating the retirement benefit obligations, the straight-line basis is used in determining theamount of the expected retirement benefit obligation attributed to service performed up to the end of
the current fiscal year.
b. Method of recognizing actuarial differences and prior service costs
The entire amount of prior service cost is recognized in profit or loss in the fiscal year during which itarises. Actuarial differences are recognized in profit or loss in the year following the year in which a
respective gain or loss arises, and are amortized proportionally on a straight-line basis over a periodof five years, which is within the average remaining years of service of the eligible employees.
c. Method of accounting for unrecognized actuarial difference
Unrecognized actuarial difference is accounted for in remeasurements of defined benefit plans, after
adjusting for tax effects, under accumulated other comprehensive income of net assets.
(5) Basis of revenue recognition
Deferred installment income:The prorated amounts for the shopping loan service are recognized as income when the due datecomes.
(6) Method of significant hedge accounting
a. Method of hedge accounting
Interest rate swaps are accounted for using the exceptional treatment as they satisfy the applicableconditions.
b. Hedging instrument and hedged item
Hedging instrument:Interest rate swaps
Hedged item:
Interest on loansc. Hedging policy
Interest rate swap transactions are used to avoid interest rate fluctuation risk associated with fundprocurement.
d. Method of evaluating hedge effectivenessHedging effectiveness in interest rate swap transactions is not evaluated as they are accounted forusing the exceptional treatment.

- 27 -

(7) Scope of funds in consolidated statement of cash flows
Cash (cash and cash equivalents) in the consolidated statement of cash flows consists of cash on handand short-term investments with a maturity not exceeding three months from the time of purchase that arereadily convertible to cash and not exposed to significant risk in value fluctuations. Bank overdrafts areincluded in cash equivalents except when they are clearly regarded for procurement of funds, as is thecase with short-term loans payable.
(8) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting for consumption taxes:
Consumption taxes are excluded from transaction amounts.
(Changes in presentation)(Changes due to application of Accounting Standard for Consolidated Financial Statements)
The Company has applied provisions of Paragraph 39 of the “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13, 2013), etc., and has accordingly made changes in thepresentation of net income, etc. and has also made changes in presentation from minority interests tonon-controlling interests. To reflect these changes, the Company has restated its consolidated financial statements
for the previous fiscal year.
(Consolidated balance sheet)* Investment securities for non-consolidated subsidiaries and affiliates are as follows.

(Millions of yen)
Fiscal 2016

Fiscal 2015
Investment securities

723

1,169

(Consolidated statement of income)* Impairment loss
Fiscal 2015 (from April 1, 2014 to March 31, 2015)(Millions of yen)

Use of asset

Type of asset

RegionBranch anddistribution center andother

Other intangible
assets and otherYamato (China) Transport Co., Ltd. (Shanghai,
China) and ten other premises

Amount of impairment
loss

1,791

The Yamato Group grouped the assets based on the classification in managerial accounting and the unit in making
investment decisions, with Yamato Transport Co., Ltd. treating primarily a main branch and subordinate branches as
one unit and the Company and other consolidated subsidiaries based on the unit of department.
As a result, the Group recognized a continuous decrease in profit and loss arising from operating activities orsignificant declines in market prices for the asset group consisting of Yamato (China) Transport Co., Ltd. and tenother premises, and it decreased the book value of the relevant asset group to the recoverable value and posted therelevant decrease of 1,791 million yen to extraordinary losses as an impairment loss. A breakdown of this decreaseshows that 328 million yen was attributable to buildings, 290 million yen was attributable to land and 847 million yen
was attributable to other intangible assets.
Where the recoverable value of a relevant asset group is calculated on the basis of value in use, the calculation ismade by discounting future cash flows by a discount rate of between 5.65% and 6.15%. Also, where the recoverable
value is calculated based on net realizable value, the amount is valued based mainly on real estate appraisal
standards, assessed value of property tax or the posted land price.

- 28 -

Fiscal 2016 (from April 1, 2015 to March 31, 2016)(Millions of yen)Amount of impairment
loss

Use of asset

Type of asset

RegionBranch anddistribution center andother

Buildings, land andotherYamato Transport Co., Ltd., Tokushima Main
Branch and eight other premises

1,154

The Yamato Group grouped the assets based on the classification in managerial accounting and the unit in making
investment decisions, with Yamato Transport Co., Ltd. treating primarily a main branch and subordinate branches as
one unit and the Company and other consolidated subsidiaries based on the unit of department.
As a result, the Group recognized a continuous decrease in profit and loss arising from operating activities orsignificant declines in market prices for the asset group consisting of Yamato Transport Co., Ltd., Tokushima Main
Branch and eight other premises, and it decreased the book value of the relevant asset group to the recoverable
value and posted the relevant decrease of 1,154 million yen to extraordinary losses as an impairment loss. A
breakdown of this decrease shows that 578 million yen was attributable to buildings and 360 million yen was
attributable to land.
Where the recoverable value is calculated based on net realizable value, the amount is valued based mainly on realestate appraisal standards, assessed value of property tax or the posted land price.
(Consolidated statement of comprehensive income)*Recycling amount and income tax relating to other comprehensive income
Valuation difference on available-for-sale securities
Amount recorded during the period
Recycling amount
Before tax effect adjustments
Tax effect amount
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Amount recorded during the period
Remeasurements of defined benefit plans, net of tax
Amount recorded during the period
Recycling amount
Before tax effect adjustments
Tax effect amountRemeasurements of defined benefit plans, net of tax
Total other comprehensive income- 29 -

Fiscal 2015

(Millions of yen)
Fiscal 2016

7,258
(6)

(5,251)(53)

7,251(1,880)5,370(5,305)
1,329(3,975)

826

(418)

3,351
398
3,750
(1,307)
2,442
8,640

(16,387)789(15,598)
4,811(10,787)(15,181)(Consolidated statement of changes in equity)
For the year ended March 31, 2015
1. Class and total number of issued shares and treasury shares(Thousands of shares)

Number of shares as of
the beginning of thecurrent fiscal year

Number of increased
shares in current fiscal
year

Number of decreased
shares in current fiscal
year

Number of shares as ofend of current fiscal
year

Common shares (Note 1)

454,684—

19,120435,564

Total

454,684—

19,120435,564

Common shares (Note 2)

35,742

12,23525,606

22,370Total

35,742

12,23525,606

22,370Issued shares

Treasury shares

Notes: *1 The decrease of 19,120 thousand shares of issued shares of common shares resulted from a decrease due to retirement of treasury
shares.
*2 The increase of 12,235 thousand shares of treasury shares of common shares resulted from an increase of 11,962 thousand shares
due to the purchase of treasury shares and other increases.
The decrease of 25,606 thousand shares of treasury shares of common shares resulted from a decrease of 19,120 thousand sharesthrough retirement of treasury shares, a decrease of 5,589 thousand shares through the exercise of subscription rights to sharesattached to bonds with subscription rights to shares and other decreases.

2.

Subscription rights to shares and treasury subscription rights to shares
As the number of shares subject to subscription rights is immaterial against the total number of issued shares(excluding treasury shares) as of the end of the fiscal year under review, descriptions are omitted.

3. Dividends(1) Payment of dividends
Resolution

Class of shares

Total amount ofdividends(millions of yen)

The Board of Directors
Meeting on May 16, 2014

Common shares

5,027

The Board of Directors
Meeting on October 30, 2014

Common shares

5,038

Dividend pershare (yen)Record date

Effective date on
and after

12

March 31, 2014

June 3, 201412

September 30,
2014

December 10,
2014(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in theupcoming fiscal year
Resolution

Class ofsharesTotal amount ofdividends(millions of yen)

Source ofdividend

Dividend pershare (yen)Record date

Effective dateon and after

The Board of Directors
Meeting on May 14, 2015

Commonshares5,371

Retainedearnings

13

March 31,2015

June 2, 2015

- 30 -

For the year ended March 31, 2016
1. Class and total number of issued shares and treasury shares(Thousands of shares)

Number of shares as of
the beginning of thecurrent fiscal year

Number of increased
shares in current fiscal
year

Number of decreased
shares in current fiscal
year

Number of shares as ofend of current fiscal
year

Common shares (Note 1)

435,564—

24,224

411,339

Total

435,564—

24,224

411,339

Common shares (Note 2)

22,37019,85029,397

12,823

Total

22,37019,85029,397

12,823Issued shares

Treasury shares

Notes: *1 The decrease of 24,224 thousand shares of issued shares of common shares resulted from a decrease due to retirement of treasury
shares.
*2 The increase of 19,850 thousand shares of treasury shares of common shares resulted from an increase of 19,847 thousand shares
due to the purchase of treasury shares and other increases.
The decrease of 29,397 thousand shares of treasury shares of common shares resulted from a decrease of 24,224 thousand sharesthrough retirement of treasury shares, a decrease of 5,172 thousand shares through the exercise of subscription rights to sharesattached to bonds with subscription rights to shares and other decreases.

2.

Subscription rights to shares and treasury subscription rights to shares
Not applicable.

3. Dividends(1) Payment of dividends
Resolution

Class of shares

Total amount ofdividends(millions of yen)

The Board of Directors
Meeting on May 14, 2015

Common shares

5,371

The Board of Directors
Meeting on October 29, 2015

Common shares

5,302

Dividend pershare (yen)Record date

Effective date on
and after

13

March 31, 2015

June 2, 201513

September 30,
2015

December 10,
2015(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in theupcoming fiscal year
Resolution

Class ofsharesTotal amount ofdividends(millions of yen)

Source ofdividend

Dividend pershare (yen)Record date

Effective dateon and after

The Board of Directors
Meeting on May 19, 2016
(planned)

Commonshares5,977

Retainedearnings

15

March 31,2016

June 3, 2016
(planned)(Note) The dividend per share of 15 yen includes commemorative dividends of 2 yen.

(Consolidated statement of cash flows)*1

Relationship between the balance of cash and cash equivalents at the end of the period and the amounts
recorded in the items shown on the consolidated balance sheet(Millions of yen)

Fiscal 2015

Fiscal 2016

247,398

249,593

Time deposits due beyond three months

(36)

—

Short-term loans payable account

(311)

(332)

247,051

249,261

Cash and deposits

Cash and cash equivalents- 31 -

2

Important non-cash transactions
Exercise of subscription rights to shares attached to convertible bond-type bonds with subscription rights toshares(Millions of yen)

Fiscal 2015

Fiscal 2016

Decrease in capital surplus due to exercise of subscription rights to shares(405)(1,636)

Decrease in treasury shares due to exercise of subscription rights to shares

10,745

11,206

Decrease in bonds with subscription rights to shares due to exercise ofsubscription rights to shares

10,3409,570(Segment Information)
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-BusinessType 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

Financial
Autoworks(2) Method of calculating operating revenue, income/loss, assets and other items by reportable segment
The accounting method used for reported business segments is the same as that described in the section on“Significant matters forming the basis of preparing the consolidated financial statements.”(3) Information regarding the amounts of operating revenue, income/loss, assets and other items by reportablesegment
For the year ended March 31, 2015
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,103,188

103,82148,47540,486

66,64964,244

12,15014,54628,253

3,402

1,167,433
39,604
661,980

115,971
4,682
61,50763,021
613
20,24168,7397,756
40,37770,051
8,942
239,026

34,805

1,818

557

3,761

3,437

33,840

3,200

711

4,965

8,397

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets- 32 -

Financial

Autoworks

Other(Notes 1, 2)

27,153

6,933

1,396,708—

1,396,708

28,55845,994

197,149(197,149)—

55,711
3,733
24,79452,92823,93910,032

1,593,857
89,272
1,057,961(197,149)(20,325)
24,5701,396,708
68,947
1,082,531

767

247

45,394663

46,058454

210

51,780241

52,022

Operating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Reconciliation(Note 3)

(Millions of yen)Amountrecorded inconsolidated
financialstatements(Note 4)

Total

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 income is 22,100 million yen.
3. Adjustments made are as follows.
(1) The adjustment of (20,325 million yen) of segment income resulted from eliminating transactions among segments, etc.
(2) The adjustment of 24,570 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (164,856 million yen) and group-wide assets of 189,426 million yen not allocated to each reportable segment.
(3) The adjustment of 241 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 223 million yen.
4. We made an adjustment between segment income and operating income in the consolidated statement of income.

For the year ended March 31, 2016
(Millions of yen)
Delivery(Note 1)
Operating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

Operating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment income
Segment assets
OthersDepreciation
Increases of property, plant andequipment and intangible assets

BIZ-Logistics

Home
Convenience

e-Business

1,111,867

106,822

48,981

43,35772,45566,082

12,553

15,24630,366

3,352

1,177,950
38,190649,825

119,375
4,905
60,47164,2281,146
21,43673,7249,009
43,61975,807
8,685
243,037

33,958

2,160

532

4,240

4,068

34,976

2,839

716

6,413

7,466

Reconciliation(Note 4)

Amountrecorded inconsolidated
financialstatements(Note 5)

Financial

Autoworks

Other(Notes 1, 2, 3)

24,4588,470

1,416,413—

1,416,413

27,53949,860205,001(205,001)—

51,9983,372
24,26458,33026,515
11,267

1,621,414
91,825
1,053,923(205,001)(23,285)
35,513

1,416,413
68,5401,089,436

782

296

46,039699

46,739696

692

53,801

143

53,945- 33 -

Total

Notes: 1. Effective from the fiscal year ended March 31, 2016, the Company has made changes to business segment classifications toensure that such classifications more adequately accord with actual circumstances related to management and administration.
These changes mainly involve inclusion of the human resources management business in the Delivery Business segment, fromthe Other segment previously. The segment information for the fiscal year ended March 31, 2015 has been prepared andpresented according to the new classification.
2. Other includes business-to-business distribution via JITBOX Charter and shared services.
3. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment income is 24,889 million yen.
4. Adjustments made are as follows.
(1) The adjustment of (23,285 million yen) of segment income resulted from eliminating transactions among segments, etc.
(2) The adjustment of 35,513 million yen of segment assets includes eliminations of intersegment receivables and payables, etc.
of (164,797 million yen) and group-wide assets of 200,311 million yen not allocated to each reportable segment.
(3) The adjustment of 143 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 141 million yen.
5. We made an adjustment between segment income and operating income in the consolidated statement of income.

- 34 -

2.

Relevant information
For the year ended March 31, 2015(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko Mail

912,563(Millions of Yen)
Total

Other

111,885

372,260

1,396,708(2) Information by region
a. Operating revenue
Japan

North America
1,368,793

17,653(Millions of Yen)
Total
1,396,708

1,456(Millions of Yen)
Total
420,101

Other
10,261b. Property, plant and equipment
Japan

North America
418,202

Other
441(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.
For the year ended March 31, 2016(1) Information by product and service
TA-Q-BIN
Operating revenue
from customers

Kuroneko DM-Bin

939,470(Millions of Yen)
Total

Other

82,701

394,241

1,416,413(2) Information by region
a. Operating revenue
Japan

North America
1,390,082

14,850(Millions of Yen)
Total
1,416,413

1,118(Millions of Yen)
Total
405,641

Other
11,480b. Property, plant and equipment
Japan

North America
404,091

Other431(3) Information by major customer
Of operating revenue from customers, because no single revenue from any one customer accounts for
10% or more of the operating revenue of the consolidated statement of income, descriptions are omitted.

- 35 -

3.

Information regarding impairment losses of non-current assets by reportable segment
For the year ended March 31, 2015
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics

1,403
Autoworks

90

Home
Convenience
297

Other

Impairment loss—

Financial—

Corporate or
eliminations

Total

—

e-Business

1,791

—
Consolidated

—

1,791

For the year ended March 31, 2016
(Millions of Yen)
Delivery
Impairment loss

BIZ-Logistics
816

Autoworks
Impairment loss

4.

Home
Convenience

192
Other

136

e-Business——Corporate or
eliminations

Total
—

Financial

1,154

Consolidated—

Information regarding amortization and unamortized balance of goodwill by reportable segment
For the year ended March 31, 2015
Not applicable.
For the year ended March 31, 2016
Descriptions are omitted, as the monetary value is immaterial.

- 36 -

9

1,154

(Tax Effect Accounting)1.

Breakdown of major causes for deferred tax assets and deferred tax liabilities(Millions of yen)
Fiscal 2016

Fiscal 2015
Deferred tax assets (current assets)
Provision for bonuses
Accrued legal welfare expenses
Accrued enterprise tax
Excess in provision of allowance for doubtful accounts
Other

9,711
1,818
1,768
216
2,465

9,441
1,524
1,773
184
2,215

Total

15,97915,138Deferred tax assets (non-current assets)
Net defined benefit liability
Loss on valuation of land
Impairment loss
Loss on valuation of investment securities
Unrealized income on non-current assets
Loss on valuation of telephone subscription rightOther

17,727
21,898
4,188
1,992
1,913
494
10,69322,02820,759
4,574
1,880
2,138
468
10,287

Subtotal
Allowance for devaluation

58,907(33,122)

62,138(31,942)

Total

25,78530,195

(292)

(231)

Total

(292)

(231)

Deferred tax liabilities (non-current liabilities)
Valuation difference on available-for-sale securities
Reserve for reduction entry
Other(4,739)(205)(2,810)(3,404)(231)(2,350)Total(7,755)(5,987)33,717

39,116

Deferred tax liabilities (current liabilities)
Other

Net deferred tax assets

2.

Breakdown of the main items that caused differences between the normal effective statutory tax rates and theactual effective tax rates after tax effect accounting

Normal effective statutory tax rates of consolidated financial
statement-submitting companies(Reconciliation)

Per capita levy of local taxes
Allowance for devaluation
Downward revision to deferred tax assets as of the end of
the period due to the change in corporate tax rates
Other

Actual effective tax rates after tax effect accounting- 37 -

Fiscal 2015

Fiscal 201635.6 %

33.1 %

4.2
(0.2)

4.3
0.8

5.0

2.7

1.0

0.8

45.6

41.7

3.

Adjustment of deferred tax assets and deferred tax liabilities due to change in corporate tax rates, etc.
On March 29, 2016, the “Act for Partial Revision of the Income Tax Act, etc.” (Act No. 15 of 2016), and the “Actfor Partial Revision of the Local Tax Act, etc.” (Act No. 13 of 2016) were enacted in the Diet. As a result, thenormal effective statutory tax rate of 32.3% previously applied in calculating the amount of deferred tax assets
and liabilities has been reduced to 30.9% with respect to the temporary differences expected to be resolved in
the fiscal year beginning April 1, 2016 and in the fiscal year beginning April 1, 2017. Also, the normal effective
statutory tax rate will be further reduced to 30.6% with respect to the temporary differences expected to beresolved in the fiscal year beginning April 1, 2018, and subsequent fiscal years. This has resulted in a decreasein deferred tax assets of 1,894 million yen (after subtraction of deferred tax liabilities; of which, the effect of the
tax rate change amounts to 1,893 million yen) and an increase in income taxes - deferred of 1,833 million yen(of which, the effect of the tax rate change amounts to 1,832 million yen).

(Financial Instruments)
1.

Matters concerning the status of financial instruments(1) Policy on financial instruments
To finance further business growth, the Yamato Group raises capital through bank loans and bondissuances based on an investment scheme that includes the network development plan. One-time surplus
funds are invested in safe financial assets. Derivative products are mainly used for hedging against
variable interest rate risk, and no speculative transactions are undertaken.
Some of the Group’s consolidated subsidiaries are engaged in businesses such as leasing and third-party
credit sales.
(2) Features and risks of financial instruments and risk management structure
Operating receivables such as notes and accounts receivable - trade and accounts receivable installment carry credit risk of trading partners, and thus the Company manages and controls cash
received, as well as outstanding receivables, for each period to identify the credit risk of each trading
partner.
Regarding investment securities, the Yamato Group mainly holds shares of companies with which theGroup has business relationships or forms a capital alliance, and such shares involve the risk of stock
price fluctuations.
The majority of operating payables, such as notes and accounts payable - trade, are due within one year.
Short-term loans payable and long-term loans payable are mainly used to raise capital for the Group’s
financial business. Some of the loans payable are procured at variable rates of interest, and the Group
employs interest rate swaps for a portion of those loans to hedge interest rate risk associated withfundraising. Interest rate swap transactions are executed in conformity with the Group’s regulations for
authorizing derivative transactions.
Within the Yamato Group, each Group company controls liquidity risk associated with operating payables
and loans by monitoring payments and settlements, bookkeeping, and balances, as well as managing
cash positions.
(3) Supplemental remarks on the fair value of the financial instruments
The fair value of financial instruments refers to their market value or value reasonably calculated basedon certain assumptions if market value is not available. Therefore, the estimated fair value may vary withdifferent assumptions.

- 38 -

2.

Matters concerning fair value of financial instruments
The amounts recorded on the consolidated balance sheet, their fair values, and differences between them areshown in the following. Some financial instruments are excluded because it is extremely difficult to identify theirfair values (see Note 5).
For the year ended March 31, 2015
(Millions of yen)Amount on the
consolidated balance
sheet(1) Cash and deposits

247,398(2) Notes and accounts receivable - trade187,833

Fair value

Difference

247,398—

188,298586

35,55040,9795,428

Available-for-sale securities

33,01633,016—(5) Notes and accounts payable - trade[157,479][157,479]—(6) Short-term loans payable[34,443][34,514]70(7) Long-term loans payable[83,876][83,834]

(41)

—

—

—

Allowance for doubtful accounts(121)
187,712(3) Accounts receivable - installment

42,007

Allowance for doubtful accounts(802)

Deferred installment income[5,655](4) Investment securities(8) Derivatives
Notes:

1. Items recognized as liabilities are shown in square parentheses [ ] both under Amount on the consolidated balance sheet andFair value.
2. Notes and accounts receivable - trade are presented after deducting allowance for doubtful accounts set up for notes andaccounts receivable - trade not to be settled in the short term.
3. Accounts receivable - installment is presented after deducting the relevant allowance for doubtful accounts and deferredinstallment income.
4. Method of calculating fair value of financial instruments and other matters concerning securities and derivatives(1) Cash and deposits
Because all deposits are short-term deposits and their fair values are approximately equal to their book values, fair value isthe same as book value.
(2) Notes and accounts receivable - trade
Because notes and accounts receivable - trade are usually settled in a short period and their fair values are approximately
equal to their book values, fair value is the same as book value. Some notes and accounts receivable - trade are grouped bytheir classification categories and computed on the basis of the present value of future cash flow discounted at a rate basedon the yield of Japanese government bonds.
(3) Accounts receivable - installment
The fair values of accounts receivable - installment are grouped by their classification categories and computed on the basisof the present value of future cash flow discounted at the rate based on market interest rate.
(4) Investment securities
The fair values of listed equity shares in investment securities are based on quoted market prices. For matters concerning
securities according to the purpose for which they are held, please see the notes to “Securities.”(5) Notes and accounts payable - trade
As most notes and accounts payable - trade are due within one year and their fair values are approximately equal to theirbook values, fair value is the same as book value.
(6) Short-term loans payable and (7) Long-term loans payable
The fair value of short-term loans payable, long-term loans payable, and long-term loans payable meeting the requirementsof exceptional treatment for interest rate swaps and being treated together with interest swaps are computed on the basis of
the total amount of principal and interest discounted at the interest rate applicable to new loans carrying the same conditions.

- 39 -

(8) Derivatives
a. Derivative transactions to which hedge accounting is not applied: Not applicable.
b. Derivative transactions to which hedge accounting is applied: The contract amount or amount equivalent to the principal
set forth in the contract, as of the consolidated closing date, are as follows.
(Millions of yen)Contract
amount,etc.
Type of derivative
Major hedged
Method of hedge accounting
Fair valuetransaction
itemsOver 1 year
Interest rateswaps
Long-term loans
38,582
26,376*payablePay-fixed,
receive-variable* The exceptional treatment of interest rate swaps is applied to the Group’s interest rate swaps, and these transactions are treated together
with long-term loans payable with the relevant hedging instruments. Therefore, their fair value is included among long-term loans payable.
Exceptional treatment of interest rateswaps

5. It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is1,550 million yen) because they do not have quoted market prices and their future cash flow cannot be estimated. Therefore, they
are excluded from (4) Investment securities/Available-for-sale securities.
6. Scheduled redemption amounts after the consolidated closing date for monetary claims and securities with maturity period

Within 1 year

(Millions of yen)Over 5 years

Over 1 year, within 5 years

Cash and deposits
Notes and accounts receivable - trade
Accounts receivable - installment

247,398
174,738
20,655—
12,914
20,730

—
180
622

Total

442,792

33,644803

7. Scheduled repayment amounts after the consolidated closing date for long-term loans payable(Millions of yen)
Within 1 year
Long-term loans
payableOver 1 year,
within 2 years

Over 2 years,
within 3 years

Over 3 years,
within 4 years

Over 4 years,
within 5 years

32,32741,54810,000—16,677

Over 5 years—

For the year ended March 31, 2016
(Millions of yen)Amount on the
consolidated balance
sheet(1) Cash and deposits

249,593(2) Notes and accounts receivable - trade197,382

Fair value

Difference

249,593—

198,154897

37,10742,933

5,826

Available-for-sale securities

29,21529,215—(5) Notes and accounts payable - trade[148,456][148,456]—(6) Short-term loans payable[55,933][56,017]84(7) Long-term loans payable[90,515][90,859]

343

—

—

—

Allowance for doubtful accounts(124)
197,257(3) Accounts receivable - installment

43,647

Allowance for doubtful accounts(645)

Deferred installment income[5,894](4) Investment securities(8) Derivatives- 40 -

Notes:1. Items recognized as liabilities are shown in square parentheses [ ] both under Amount on the consolidated balance sheet andFair value.
2. Notes and accounts receivable - trade are presented after deducting allowance for doubtful accounts set up for notes andaccounts receivable - trade not to be settled in the short term.
3. Accounts receivable - installment is presented after deducting the relevant allowance for doubtful accounts and deferredinstallment income.
4. Method of calculating fair value of financial instruments and other matters concerning securities and derivatives(1) Cash and deposits
Because all deposits are short-term deposits and their fair values are approximately equal to their book values, fair value isthe same as book value.
(2) Notes and accounts receivable - trade
Because notes and accounts receivable - trade are usually settled in a short period and their fair values are approximately
equal to their book values, fair value is the same as book value. Some notes and accounts receivable - trade are grouped bytheir classification categories and computed on the basis of the present value of future cash flow discounted at a rate basedon the yield of Japanese government bonds.
(3) Accounts receivable - installment
The fair values of accounts receivable - installment are grouped by their classification categories and computed on the basisof the present value of future cash flow discounted at the rate based on market interest rate.
(4) Investment securities
The fair values of listed equity shares in investment securities are based on quoted market prices. For matters concerning
securities according to the purpose for which they are held, please see the notes to “Securities.”(5) Notes and accounts payable - trade
As most notes and accounts payable - trade are due within one year and their fair values are approximately equal to theirbook values, fair value is the same as book value.
(6) Short-term loans payable and (7) Long-term loans payable
The fair value of short-term loans payable, long-term loans payable, and long-term loans payable meeting the requirementsof exceptional treatment for interest rate swaps and being treated together with interest swaps are computed on the basis of
the total amount of principal and interest discounted at the interest rate applicable to new loans carrying the same conditions.
(8) Derivatives
a. Derivative transactions to which hedge accounting is not applied: Not applicable.
b. Derivative transactions to which hedge accounting is applied: The contract amount or amount equivalent to the principal
set forth in the contract, as of the consolidated closing date, are as follows.
(Millions of yen)Contract
amount,etc.
Type of derivative
Major hedged
Method of hedge accounting
Fair valuetransaction
itemsOver 1 year
Interest rateswaps
Long-term loans
26,376
8,220*
payablePay-fixed,
receive-variable* The exceptional treatment of interest rate swaps is applied to the Group’s interest rate swaps, and these transactions are treated together
with long-term loans payable with the relevant hedging instruments. Therefore, their fair value is included among long-term loans payable.
Exceptional treatment of interest rateswaps

5. It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is2,282 million yen) because they do not have quoted market prices and their future cash flow cannot be estimated. Therefore, they
are excluded from (4) Investment securities/Available-for-sale securities.
6. Scheduled redemption amounts after the consolidated closing date for monetary claims and securities with maturity period

Within 1 year

(Millions of yen)Over 5 years

Over 1 year, within 5 years

Cash and deposits
Notes and accounts receivable - trade
Accounts receivable - installment

249,593
181,984
21,438—15,196
21,631

—
201
578

Total

453,015

36,828779

7. Scheduled repayment amounts after the consolidated closing date for long-term loans payable(Millions of yen)
Within 1 year
Long-term loans
payable32,318Over 1 year,
within 2 years

Over 2 years,
within 3 years

Over 3 years,
within 4 years

Over 4 years,
within 5 years

43,91533,60013,000—- 41 -

Over 5 years—

(Securities)
For the year ended March 31, 2015
1.

Available-for-sale securities(Millions of yen)Amount on the
consolidated balance sheet

Type

Acquisition cost

Difference

Those whose value
recorded on the
consolidated balance
sheet exceeds theacquisition cost

(1)

Stocks

32,761

13,50019,260

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

32,761

13,50019,260Those whose value
recorded on the
consolidated balance
sheet does not exceed
the acquisition cost

(1)

Stocks

255

293

(37)

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

255

293

(37)

Note:

2.

Total
33,016
13,793
19,222
It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is 1,550
million yen) because they do not have quoted market prices. Therefore, they are excluded from the above table of “Available-for-salesecurities.”

Available-for-sale securities sold during the year ended March 31, 2015
(Millions of yen)
Type

Sale amount

Total capital gains

Total capital losses(1)

Stocks

14

6

—

(2)

Bonds

—

—

—

(3)

Other

—

—

—

14

6

—

Total

3.

Securities on which impairment losses were recognizedNot applicable.

For the year ended March 31, 2016
1.

Available-for-sale securities(Millions of yen)Type

Amount on the
consolidated balance sheet

Acquisition cost

Difference

Those whose value
recorded on the
consolidated balance
sheet exceeds theacquisition cost

(1)

Stocks28,727

14,67914,047

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

28,727

14,67914,047

Those whose value
recorded on the
consolidated balance
sheet does not exceed
the acquisition cost

(1)

Stocks

488

572

(83)

(2)

Bonds

—

—

—

(3)

Other

—

—

—

Subtotal

488

572

(83)

Note:

Total
29,215
15,252
13,963
It is extremely difficult to determine the fair values of unlisted securities (the amount recorded on consolidated balance sheet is 2,282
million yen) because they do not have quoted market prices. Therefore, they are excluded from the above table of “Available-for-salesecurities.”- 42 -

2.

Available-for-sale securities sold during the year ended March 31, 2016
(Millions of yen)
Type

Sale amount

Total capital gains

Total capital losses(1)

Stocks

109

53

—

(2)

Bonds

—

—

—

(3)

Other

—

—

—

109

53

—

Total

3.

Securities on which impairment losses were recognizedNot applicable.

- 43 -

(Retirement Benefit)
1.

Outline of retirement benefit plan
The Yamato Group adopts a contributory trusted pension plan based on a cash balance scheme and an
unfunded retirement benefit plan as its defined benefit pension system. In addition, the Yamato Group Life Plan
pension scheme was introduced as a defined contribution retirement plan.

2.

Defined benefit plans(1) Reconciliation of retirement benefit obligation beginning and ending balances(Millions of yen)
Retirement benefit obligation at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Service cost
Interest cost
Actuarial difference arising during period
Retirement benefits paid

Fiscal 2015

Fiscal 2016

119,135
6,312
125,447
9,703
1,097
1,917
(5,040)133,126—
133,126
10,073
1,147
14,942(5,776)Retirement benefit obligation at end of period
133,126
Note:
Some consolidated subsidiaries adopt a simplified method of calculating retirement benefit obligations.

153,512(2) Reconciliation of pension asset beginning and ending balances(Millions of yen)
Fiscal 2015

Fiscal 2016

Pension assets at beginning of period
Expected return
Actuarial difference arising during period
Employer contributions
Retirement benefits paid

72,078
720
5,269
4,137
(1,847)80,358803(1,444)
4,261(1,962)

Pension assets at end of period

80,35882,016(3) Reconciliation of ending balances of retirement benefit obligations and pension assets with consolidatedbalance sheet net defined benefit assets and liabilities(Millions of yen)
Fiscal 2015

Fiscal 2016Retirement benefit obligations of funded plans
Pension assets

53,414(80,358)

60,980(82,016)

Retirement benefit obligations of unfunded plans(26,943)
79,711(21,035)
92,532

Net of consolidated balance sheet assets and liabilities

52,76771,496

Net defined benefit liability
Net defined benefit asset

53,023(255)

71,551(54)

Net of consolidated balance sheet assets and liabilities
52,76771,496
Note:
These figures combine offsetting amounts for net defined benefit assets and liabilities that have been stated by the Company
and its individual consolidated subsidiaries.

- 44 -

(4) Retirement benefit expense and its components(Millions of yen)
Fiscal 2015

Fiscal 2016

Service cost
Interest cost
Expected return
Recognized actuarial difference
Other

9,703
1,097
(720)
398
(12)

10,073
1,147
(803)
789
5

Retirement benefit expense related to defined benefit plans

10,467

11,211(5) Remeasurements of defined benefit plans, net of tax
The following table provides a breakdown of the components making up remeasurements of defined
benefit plans, net of tax (pre-tax).
(Millions of yen)
Fiscal 2015

Fiscal 2016

Actuarial difference

3,750(15,598)

Total

3,750

(15,598)(6) Remeasurements of defined benefit plans
The following table provides a breakdown of the components making up remeasurements of defined
benefit plans (pre-tax).
(Millions of yen)
Fiscal 2015

Fiscal 2016

Unrecognized actuarial difference

1,067(14,531)

Total

1,067

(14,531)(7) Pension assets
a. Primary components of pension assets
Pension asset components as a percentage of total pension assets are as follows.
Fiscal 2015

Fiscal 2016

General accounts
Bonds
Stocks
Other

31%
24%
24%
21%

34%
27%
21%
18%

Total

100%

100%

b. Method of determining long-term expected rate of return
The long-term expected rate of return for pension assets is determined on the basis of the distributionof pension assets, past performance of respective assets that make up pension plan investments, andmarket trends.
(8) Matters concerning actuarial assumptions
Primary actuarial assumptions
Fiscal 2015
Discount rateLong-term expected rate of return

3.

0.9%
1.0%

Fiscal 2016
0.1%
1.0%

Defined contribution retirement plan
Required contributions to the defined contribution retirement plan of the Company and its consolidated
subsidiaries amount to 2,136 million yen and 2,192 million yen for the fiscal year ended March 31, 2015 and2016, respectively.

- 45 -

(Per Share Information)
Fiscal 2015
1,368.66 yen
90.41 yen
88.26 yen

Net assets per share
Basic earnings per share
Diluted earnings per share
Note:

The basis for calculating “basic earnings per share” and “diluted earnings per share” is as follows.
Fiscal 2015

Fiscal 2016
1,349.56 yen
96.45 yen95.64 yen
Fiscal 2016

Basic earnings per share
Profit attributable to owners of parent
Amount not belonging to ordinary shareholders
Profit attributable to owners of parent concerning common shares
Average number of shares during the period

37,533 million yen

39,424 million yen— million yen— million yen

37,533 million yen

39,424 million yen

415,131 thousand shares

408,742 thousand shares

5 million yen

15 million yen

Diluted earnings per share
Adjustments in profit attributable to owners of parent(Administrative fees (net of tax))
Increase in number of common shares(Bonds with subscription rights to shares)
Potential shares that have no dilutive effects and thus are not included in
the calculation of “diluted earnings per share.”(5 million yen)

(15 million yen)

10,187 thousand shares

3,643 thousand shares(10,187 thousand shares)(3,643 thousand shares)——(Important Subsequent Matters)
Not applicable.
(Other Notes, etc.)
Notes regarding “lease transactions,” “related party transactions,” “derivative transactions,” and “asset retirement
obligations” are omitted, as there is no significant necessity of disclosure in this financial results report.

- 46 -

6. Others
Operating revenue by businessBusiness segment(Millions of yen)
Fiscal year ended
March 31, 2015

Ratio

Fiscal year ended
March 31, 2016

Ratio

Change%%%TA-Q-BIN
969,92369.4
1,004,969
71.0
3.6
Kuroneko DM-Bin *1
116,619
8.4
87,545
6.2(24.9)
Express
42,9183.1
42,8003.0(0.3)
Delivery
Others *2
87,6196.3
94,8186.7
8.2
Eliminations(113,891)(8.2)(118,267)
(8.4)
3.8
Total
1,103,188
79.0
1,111,867
78.5
0.8
Trading logistics service
43,2153.1
38,806
2.7(10.2)
Sales and Logistics
34,767
2.5
36,2432.5
4.2
Multi maintenance
15,6891.1
15,4901.1(1.3)
BIZ-Logistics Export Factory
4,185
0.3
4,297
0.3
2.7
Others39,416
2.8
42,2463.0
7.2
Eliminations(33,453)(2.4)(30,262)
(2.1)
(9.5)
Total
103,8217.4
106,8227.5
2.9
Home convenience
41,561
3.0
42,1083.0
1.3
Business convenience
16,665
1.2
17,773
1.3
6.6
HomeTechnical Network
4,817
0.3
4,408
0.3
(8.5)
Convenience
Eliminations(14,568)(1.0)(15,308)
(1.1)
5.1
Total
48,475
3.5
48,9813.5
1.0
e-logistics solution *2
9,829
0.7
10,2750.7
4.5
Credit card solution
8,087
0.6
9,441
0.7
16.7
IT operating solution
6,253
0.4
6,413
0.5
2.6
e-BusinessWeb-based mail order solution
6,074
0.4
5,850
0.4
(3.7)
Others *2
41,5003.0
46,580
3.3
12.2
Eliminations(31,258)(2.2)(35,204)
(2.5)
12.6
Total
40,4862.9
43,3573.1
7.1
TA-Q-BIN Collect
37,5492.7
37,636
2.6
0.2
Lease
27,065
1.9
32,054
2.3
18.4
Credit & Finance
3,354
0.2
3,424
0.2
2.1
Financial
Others
2,160
0.2
2,777
0.2
28.5
Eliminations(3,481)(0.2)(3,437)
(0.2)
(1.3)
Total
66,6494.8
72,455
5.1
8.7
Truck solution *3
51,122
3.6
47,232
3.3(7.6)
Others
7,070
0.5
7,227
0.5
2.2
Autoworks
Eliminations(31,039)(2.2)(30,001)
(2.1)
(3.3)
Total
27,153
1.9
24,458
1.7(9.9)
JITBOX Charter service
6,035
0.4
7,524
0.5
24.7
Others *2
48,268
3.5
52,565
3.7
8.9
Other
Eliminations(47,369)(3.4)(51,620)
(3.6)
9.0
Total
6,933
0.5
8,470
0.6
22.2
Total
1,396,708
100.0
1,416,413
100.0
1.4
*1.
Results shown for Kuroneko DM-Bin in fiscal year ended March 31, 2015 are those of the Kuroneko Mail service.
*2.
The notes below describe major changes to business segment classifications effective from the fiscal year ended March 31, 2016,
made in accordance with actual circumstances related to management and administration. The figures presented for the fiscal year
ended March 31, 2015, have been restated in accordance with this change.
 The human resources management business, previously included in the Other segment, is now presented in the Others categoryof the Delivery segment.
 The setup and logistics solutions business, previously included in the e-logistics solutions category of the e-Business segment, isnow presented in the Others category.
*3.
Effective from the fiscal year ended March 31, 2016, the name of the Truck maintenance category in the Autoworks segment has
been changed to the Truck solution.

- 47 -

7.

Non-consolidated Financial Statements(1) Non-consolidated balance sheet(Millions of yen)
As of March 31, 2015

As of March 31, 2016

AssetsCurrent assets
Cash and deposits

145,117

Operating accounts receivable
Short-term loans receivable
Deferred tax assets
Income taxes receivable
Other
Total current assets

138,34512

46

15,246

12,998

92

117

4,536

5,192

470

882

165,476

157,582

Non-current assets
Property, plant and equipment
Vehicles8

21

Buildings

738

683

Tools, furniture and fixtures

33

12

Land

5,840

5,840

Other

19

16

6,641

6,574

1,487

986

1

2

1,489

988

Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities

26,35522,563

Shares of subsidiaries and associates

294,806

315,603

Long-term loans receivable

38,05520,883

103

1,367

Other
Allowance for investment loss

(5,301)(3,216)

Total investments and other assets

354,019357,202362,150

364,765

527,627

522,348

Total non-current assets
Total assets- 48 -

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities
Current liabilities
Operating accounts payable

304

566

Short-term loans payable

6,653

16,653Current portion of bonds with subscription rights toshares9,660—

Income taxes payable6445

Accrued expenses

51

63

Deposits received

116,018

120,796

Provision for bonuses

51

57

Other

288

201

133,091

138,384—

20,000Long-term loans payable

11,12914,476

Deferred tax liabilities

3,264

2,082

76

73

1,804

4,935

Total current liabilities
Non-current liabilities
Bonds payable

Provision for retirement benefits
Provision for loss on business of subsidiaries andassociates
Other

138

138

16,41341,706

149,504

180,090

127,234

127,234

Legal capital surplus

36,82236,822Other capital surplus

32,552—

Total capital surplus

69,37536,822

General reserve

188,965

188,965

Retained earnings brought forward

23,724

10,665

212,690

199,630

Treasury shares(43,007)(29,075)

Total shareholders’ equity

366,292

334,612Valuation difference on available-for-sale securities

11,8307,644

Total valuation and translation adjustments

11,8307,644

378,122342,257

527,627

522,348

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings

Total retained earnings

Valuation and translation adjustments

Total net assets
Total liabilities and net assets- 49 -

(2) Non-consolidated statement of income(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Operating revenue
Selling, general and administrative expenses

27,756
4,684

32,236
7,060

Operating income

23,071

25,176

Non-operating income
Interest and dividend income
Other

866
587

952
48

Total non-operating income

1,454

1,001

60
50

98
606

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Provision of allowance for investment loss
Provision for loss on business of subsidiaries andassociates
Other
Total extraordinary losses

110

704

24,41525,473

—

23

—

23

3,374

2,641

1,804

3,131

2

0

5,181

5,772

Profit before income taxes

19,234

19,724

Income taxes - current
Income taxes - deferred

142
459

92
201

Total income taxes

601

293

18,632

19,430

Profit- 50 -

(3) Non-consolidated statement of changes in equity
For the year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Capitalstock

Retainedearnings
brought
forward

Total retained
earnings

29,161

204,127(5)(5)

29,156204,122

Dividends of surplus(10,065)(10,065)

Profit18,632

18,632

14,000(14,000)—

Balance at beginning ofcurrent period

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus36,82264,041

100,863

127,234

Generalreserve
174,965

Cumulative effects ofchanges in accounting
policies
Restated balance

127,234

36,82264,041

100,863

174,965

Changes of items during
periodPurchase of treasury
shares
Disposal of treasury shares
Retirement of treasury
shares18

18(31,507)(31,507)

Provision of generalreserve
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period——(31,488)(31,488)

14,000(5,432)

8,567

127,234

36,82232,552

69,375

188,965

23,724

212,690

Valuation andtranslation adjustments

Shareholders’ equity
Treasury shares
Balance at beginning of current
period(56,079)

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equityValuation difference on
available-for-salesecurities

376,146

7,503(5)(56,079)

376,141

Total net assets

383,650(5)

7,503

383,645

Changes of items during period
Dividends of surplus(10,065)

Profit18,632(10,065)
18,632

Purchase of treasury shares(30,587)(30,587)(30,587)

Disposal of treasury shares

12,152

12,17012,170Retirement of treasury shares

31,507————

Provision of general reserve
Net changes of items otherthan shareholders’ equity

4,326

4,326

Total changes of items during
period13,071(9,849)4,326(5,522)

Balance at end of current period(43,007)366,292

11,830378,122- 51 -

For the year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Capitalstock

Retainedearnings
brought
forward

Total retained
earnings

23,724

212,690

Dividends of surplus(10,674)(10,674)

Profit19,43019,430(21,815)(21,815)

Balance at beginning ofcurrent period

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus36,82232,552

69,375

127,234

Generalreserve
188,965

Changes of items during
periodPurchase of treasury
shares
Disposal of treasury shares(1,636)(1,636)Retirement of treasury
shares(30,915)(30,915)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period——(32,552)(32,552)—(13,059)(13,059)

127,234

36,822—36,822

188,965

10,665

199,630

Valuation andtranslation adjustments

Shareholders’ equity
Treasury shares
Balance at beginning of current
period(43,007)

Total shareholders’equityValuation difference on
available-for-salesecurities

366,292

11,830Total net assets

378,122

Changes of items during period
Dividends of surplus(10,674)

Profit19,43019,430(50,006)(50,006)(50,006)

Disposal of treasury shares

11,207

9,570

9,570

Retirement of treasury shares

52,731——

Purchase of treasury shares

Net changes of items otherthan shareholders’ equity(10,674)(4,185)(4,185)

Total changes of items during
period13,932(31,679)(4,185)(35,865)

Balance at end of current period(29,075)

334,612

7,644

342,257- 52 -