Translation
October 30, 2013

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2014
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Makoto Kigawa, President
Kenichi Shibasaki, Managing Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
November 12, 2013
Scheduled date of the commencement of dividend payment:
December 10, 2013
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the second quarter of fiscal year 2014
(cumulative: from April 1, 2013 to September 30, 2013)(1) Consolidated operating results
For the six months ended
September 30, 2013
September 30, 2012
(Note) Comprehensive income:(Percentages indicate year-on-year changes.)
Operating revenue
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen%
Millions of yen%
655,818
6.2
23,35029.5
23,911
26.3
12,37653.1
617,298
0.6
18,034(20.5)
18,926(18.8)
8,083
37.5
For the six months ended September 30, 2013: 15,851 million yen (124.5%)
For the six months ended September 30, 2012: 7,061 million yen (26.6%)
Net income per share

For the six months ended
September 30, 2013
September 30, 2012

Yen
29.21
18.79

Net income pershare - fully diluted
Yen
28.48
18.33

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
September 30, 2013
974,139553,579
55.9
March 31, 2013
950,152
542,914
56.2(Reference) Equity:
As of September 30, 2013: 544,886 million yen As of March 31, 2013: 534,451 million yen

2.

Dividends
First quarter

Second quarter
Yen
Yen
Fiscal 2013—
11.00
Fiscal 2014—
12.00
Fiscal 2014 (Forecast)——(Note) Revisions to the forecasts most recently announced: None

Annual dividends
Third quarter
Yen
—
—
—

Fiscal year-end
Yen
12.00
—
12.00

Total
Yen
23.00
—
24.00

3.

Consolidated earnings forecasts for fiscal year 2014 (from April 1, 2013 to March 31, 2014)
Operating revenue

Operating income

Millions of yen%
Millions of yen%
Full year
1,345,000
4.9
71,0007.2(Note) Revisions to the forecasts most recently announced: None

(Percentages indicate year-on-year changes.)
Net income
Ordinary income
Net income
per share
Millions of yen%
Millions of yen%
Yen
72,0005.9
40,50015.2
95.58* Notes(1) Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Matters Regarding Summary Information (Notes), Application of specific accounting for preparing thequarterly consolidated financial statements” of the attached materials to the quarterly financial results report on page 7.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error corrections
a. Changes due to revision to accounting standards, etc.: Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement of prior period financial statements after error corrections:
None(4) Number of issued shares (common stock)a. Number of issued shares as of the end of the period (including treasury stock)
As of September 30, 2013
461,345,492 shares
As of March 31, 2013
461,345,492 sharesb. Number of treasury shares as of the end of the period
As of September 30, 2013
37,633,665 shares
As of March 31, 2013
37,631,001 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2013
423,712,781 shares
For the six months ended September 30, 2012
430,146,068 shares*Indication regarding execution of quarterly review procedures

At the time of the disclosure of this quarterly financial results report, the quarterly review 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 “1. Qualitative Information on Settlement of Accounts
for the Six Months, (3) Qualitative information on consolidated earnings forecasts” of the attached materials to the quarterly financial results
report on page 6.
• The Company plans to hold a financial results meeting for analysts on October 31, 2013. The materials distributed at this financial resultsmeeting shall be posted on the Company’s website after the meeting has been held.

Attached Materials
Index

1. Qualitative Information on Settlement of Accounts for the Six Months..................................................................... 2(1) Qualitative information on consolidated operating results ................................................................................. 2(2) Qualitative information on consolidated financial position ................................................................................. 6(3) Qualitative information on consolidated earnings forecasts .............................................................................. 6
2. Matters Regarding Summary Information (Notes).................................................................................................... 7
Application of specific accounting for preparing the quarterly consolidated financial statements............................. 7
3. Consolidated Financial Statements.......................................................................................................................... 8(1) Consolidated balance sheets ............................................................................................................................ 8(2) Consolidated statements of income and consolidated statements of comprehensive income ........................ 10
Consolidated statements of income (cumulative)............................................................................................. 10
Consolidated statements of comprehensive income (cumulative) ................................................................... 11(3) Consolidated statements of cash flows ........................................................................................................... 12(4) Notes to consolidated financial statements ..................................................................................................... 14(Notes to premise of going concern) ................................................................................................................ 14(Segment information, etc.).............................................................................................................................. 14(Notes on significant changes in the amount of shareholders’ equity) ............................................................. 15
4. Supplementary Information .................................................................................................................................... 16
Operating revenue by business................................................................................................................................ 16-1-

1. Qualitative Information on Settlement of Accounts for the Six Months(1) Qualitative information on consolidated operating results
Regarding the business environment during the six months ended September 30, 2013, the internet mail-ordermarket expanded, while corporate earnings and consumer spending moved toward recovery on the back of
economic measures by the government and monetary easing by the Bank of Japan. Operating in thisenvironment, the Yamato Group worked to establish new networks that will realize a revolution in logistics,
create new services, and achieve greater sophistication of its existing businesses in order to achieve theobjectives of the Long-Term Management Plan "DAN-TOTSU Management Plan 2019" and the Medium-Term
Management Plan "DAN-TOTSU Three-Year Plan HOP."
In the Delivery Business, TA-Q-BIN delivery volume significantly increased compared with the year-ago period
as a result of expanded use by corporate clients, particularly in the internet mail-order market. In addition, theYamato Group carried out anticipatory investment in its workforce as a measure to maintain quality in the
coming period, in which volume is expected to increase further. As a result, despite an increase in pickup anddelivery costs, income grew on the back of an increase in revenue.
In the non-delivery businesses, the Yamato Group created new services, and aggressively conductedalignment of functions held by the respective group companies as well as proposal-based sales to support
corporate clients in finding solutions to management challenges.
Our consolidated financial results for the six months ended September 30, 2013 were as follows.
(Millions of yen)
Item
Operating revenue
Operating income
Ordinary income
Net income

For the six months
ended September 30, 2012
617,298
18,03418,926
8,083

For the six months
ended September 30, 2013
655,818
23,35023,911
12,376

Change38,520
5,315
4,985
4,292

Growth (%)
6.2
29.5
26.3
53.1

Initiatives for the entire Yamato Group
a.

b.

c.

In order to contribute to growth strategies for the Japanese economy, the Yamato Group is promoting
strategies based on a "value networking" design that will bring about a revolution in logistics. We are also
involved in establishing partnership platforms with government bodies and other companies as part ofinitiatives aimed at revitalizing local communities throughout Japan.
For our strategies based on the "value networking" design, we completed the construction of "Atsugi
Gateway," one of our centers that will dramatically improve the delivery speed of TA-Q-BIN, in August
2013, and of "Haneda Chronogate," the Yamato Group’s largest logistics center, in September. The
Yamato Group assumed ownership of the centers in October. We also started small-lot freight service toAsia offering as short as next-day delivery as a new service in May, while in October we started"International Cool TA-Q-BIN." Looking ahead, we will continue to promote these strategies while also
creating new markets to generate further growth for the Yamato Group. To this end, we will work to realize"non-stop logistics" to link swiftly to networks while providing added value together with a "cloud-type
network" that enables shipments regardless of location, type or volume; "visualization of logistics" thatenables senders and receivers to share delivery information; and optimization of logistics thatsimultaneously meets the needs of both senders (supply) and receivers (procurement).
For the establishment of partnership platforms with government bodies and other companies, we carriedout a wide variety of efforts including the provision of services to the elderly combining shopping support
with supervision, the establishment of public-private-partnership offices aimed at the revitalization ofindustry and local communities, and the conclusion of disaster cooperation agreements with a number of
local government bodies.

-2-Summary of each operating segment

 Delivery
The delivery volumes of TA-Q-BIN and Kuroneko Mail services are as follows.
Category
TA-Q-BIN
Kuroneko Mail

a.
b.
c.

d.

e.

f.

For the six months
ended September 30, 2012
713
1,038

For the six months
ended September 30, 2013
794
1,033

(Million parcels / units)
ChangeGrowth (%)
81
(5)

11.4
(0.5)

In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business evolution,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
With respect to services for individual customers, the Yamato Group began a service that allows Kuroneko
Members to change the day and time of receiving delivery using the Internet-based parcel inquiry system,
thereby further improving convenience regarding when TA-Q-BIN deliveries are received.
Concerning corporate clients, TA-Q-BIN delivery volume significantly increased as a result of expanded
use by clients in the internet mail-order and medium- and small-lot-commercial markets. In addition, theYamato Group actively developed "intra-building/intra-area logistics" that centralize delivery within largecommercial facilities and large multi-function complexes, resulting in newly received orders for business incommercial facilities and the like in the Kanto, Chubu and Kansai regions.
In the field of business-to-business distribution, the Yamato Group established a "non-stop distribution
center" in Kumamoto, which is the Group’s first flow-through center, in order to support parts procurementby manufacturers. By implementing the site’s flow through center capabilities, the Yamato Group will
provide value through such benefits as "visualization of delivery," "shortening transportation times" and"reducing warehouse storage space."
As a means of improving productivity, the Yamato Group conducts en-masse delivery during the timezones that receivers of deliveries are most frequently at home, by utilizing team-based pick-up anddelivery involving part-time employees and Sales Drivers. Regarding sorting operations, the YamatoGroup worked to constrain costs by making sorting more efficient and promoting further mechanization ofoperations.
Operating revenue amounted to 524,531 million yen, up 5.9% from the year-ago period as a result of alarge increase in TA-Q-BIN delivery volume. Operating income was 11,449 million yen, up 51.2% from theyear-ago period.

 BIZ-Logistics
a.
b.

c.

d.

In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with international transportation
functions and logistics functions.
As a solution for the mail-order industry, the Yamato Group is offering a service that combines the "Today
Shopping Service," which offers delivery in as short a time as four hours from ordering, with "FRAPS," aproprietary logistics system making use of the Group’s nationwide network and flow-through racks.
"FRAPS" is a logistics system that enables the Group to satisfy diverse customer requirements regardlessof location, type or volume. Examples of requirements covered by "FRAPS" include the need to reduce thetime between the making of an order and its arrival by dividing stocks of goods across a variety of regions
and the need to outsource product dispatching operations during the busiest periods only. Use of thesystem is expanding steadily.
The Yamato Group is offering a service for product repair and the like in which repaired goods are returnedin as short a time as three days. The short turnaround is achieved through comprehensive support from allaround the Yamato Group for product collection, repair and delivery operations. In the six months ended
September 30, 2013, the Yamato Group introduced the "Kuroneko Extended Warranty Service (Direct)" forinternet mail-order purchases of electronic products, under which customers can extend the warranty after
receiving their goods, and worked to further expand the contents of the service.
Regarding the international transportation of manufacturing parts, the Yamato Group started operating a"parts center" inside its international logistics center near Naha Airport to support manufacturing
companies. The Yamato Group will also offer value by such means as "shortening transportation times"

-3-

e.

and "cutting costs by reducing warehouse volume" through a combination of "warehouse functions underbond," "24-hour customs clearance" and "an extensive late-night freight network to Asia."
Operating revenue amounted to 43,774 million yen, up 4.6% from the year-ago period mainly due to theincreased use of services by the mail-order industry and by the pharmaceuticals and medical devices
related industries, despite a decline in the delivery volume of trade freight. Operating income was 1,734
million yen, down 21.7% from the year-ago period as our efforts to reduce subcontracting expenses were
not enough to cover the decline in the delivery volume of trade freight.

 Home Convenience
a.
b.

c.

d.

In the Home Convenience Business, we are working to offer convenience and comfort to customers’ lives
by providing lifestyle support services that utilize the nationwide network of the Yamato Group.
With respect to individual customers, the Yamato Group operated a variety of services to assist in daily life
centered on its moving-related services. In the six months ended September 30, 2013, in addition toachieving growth in delivery and installation agent services for furniture and electronic products, we started
providing the "Comfortable Lifestyle Support Service" to handle everyday problems such as housecleaning and collection of unwanted items.
In our services for corporate clients, in addition to moving services such as office relocation services, we
also provide delivery and installation agent services for electronic products and household equipment. In
the six months ended September 30, 2013, there was increased use of these services, mainly delivery,
installation and maintenance services for eco-household facilities such as domestic solar panel
installations, and repair services for commercial equipment.
Operating revenue amounted to 22,468 million yen, up 6.7% from the year-ago period as a result of theincreased use of delivery and installation agent services for electronic products and household equipment,
as well as for commercial equipment. With respect to profits, an operating loss of 637 million yen wasrecorded, but this constitutes an improvement of 526 million yen compared with the year-ago period.

 e-Business
a.
b.

c.

d.

In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively proposing solutions that combine logistics technology and financial
technology functions with information technology function.
With respect to services to assist with mail-order operations, the Yamato Group offers functions tocomprehensively support various operations from website construction to receipt of product orders,dispatch information processing, printing of delivery slips and freight tracking. In the six months ended
September 30, 2013, in sales of order management and sales support systems, there was firm growth in
new users.
In the e-money related services, the Yamato Group offers solutions through collaboration between thee-Business and the Financial Business. It has been promoting installation and operation of a multie-money settlement terminal that allows settlement by multiple types of e-money with a single device. In
the six months ended September 30, 2013, the number of terminal installations to various companies,
particularly retail stores and restaurants, increased and revenue also increased.
Operating revenue amounted to 19,905 million yen, up 12.1% from the year-ago period, largely due to thegrowth of the mail-order related services and the e-money related services. Operating income was 3,495
million yen, up 32.1% from the year-ago period.

 Financiala.
b.

In the Financial Business, the Yamato Group is endeavoring to respond to every means of payment
settlement to meet the needs of customers from payment collection on mail-order product delivery to B2Btransaction settlement.
For the mail-order industry, in addition to the mainstay product "TA-Q-BIN Collect," the Yamato Group
proactively developed "Kuroneko Web Collect," a service that allows settlement by multiple types ofmethod of payment such as credit card and e-money simultaneously. In the six months ended September
30, 2013, in addition to introducing new functions to "Kuroneko Web Collect," the Yamato Group worked toenhance the contents of its services by such means as starting a rental service for wireless-compatible

-4-

c.

d.

e-money settlement terminals for customers that require temporary settlement functions for purposes suchas conducting sales at events.
For business-to-business settlement services, the Yamato Group provides "Kuroneko Anshin Settlement
Service," which, in addition to assisting sellers expand sales channels and buyers perform credit
transactions, provides value through improving business efficiency, managing accounts receivable andreducing risk of debt collection. In the six months ended September 30, 2013, in addition to an increase in
the number of newly participating stores through sales promotion utilizing intra-group cooperation, theYamato Group promoted measures aimed at realizing increased use of these services at existing
participating stores, and revenue increased as a result.
Operating revenue amounted to 29,734 million yen, up 10.1% from the year-ago period, mainly owing to
the increased volume of TA-Q-BIN Collect and the increased number of e-money settlement transactions
due to the increased number of businesses with large mail-order companies. Operating income was 4,401
million yen, up 5.4% from the year-ago period.

 Autoworks
a.
b.
c.

d.

Effective from the three months ended June 30, 2013, the Truck Maintenance Business has beenrenamed the Autoworks Business.
In the Autoworks Business, the Yamato Group is offering customers who use trucks, buses and othervehicles in their operations the value of improved vehicle maintenance convenience, compliance withstatutory vehicle inspections, and reduced maintenance expenses.
In the six months ended September 30, 2013, the Yamato Group steadily increased the number ofvehicles serviced as a result of the increased use of the "12-Month Fixed-Price Maintenance Package,"which evens out the monthly vehicle maintenance expenses. We also strove to expand our business areas
and enhance our provision of services such as by beginning operations at the Nagoya Plant in April andstarting sales of a simplified digital tachograph in July.
Operating revenue amounted to 12,358 million yen, up 5.9% from the year-ago period due to an increasein the number of vehicles serviced. Operating income was 1,863 million yen, up 22.8% from the year-ago
period.

 Othera.

b.

The "JITBOX Charter service" is a service that provides transportation by transport box. The service takes
advantage of its Group network consisting of multiple companies and provides value to customers throughtimely delivery and frequent, right-volume delivery. In the six months ended September 30, 2013, handlingvolume increased steadily, mainly as a result of growth in service usage by customers in the
manufacturing and warehousing sectors and an increase in transportation orders related to events.
Operating income in Other excluding dividends which Yamato Holdings Co., Ltd. received from the Group
companies decreased 5.6% from the year-ago period to 400 million yen.

CSR Initiatives
a.

b.

c.

The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. In the six months ended September 30, 2013, a total of more than 2.2 million people have now
participated in the "Safety Classes for Children" that the Group has continuously conducted as an initiative
to provide a local community-oriented service. In addition, the Group promoted various initiatives such as
conducting the "Zero Accident Campaign" which is a safety campaign deployed horizontally throughout theentire group, and the introduction and expansion of on-board systems designed with safety in mind.
The Yamato Group has formulated "Nekology" (combining "Kuroneko" with "ecology"), which is anenvironmental protection philosophy and guideline for environmental activities for the entire Group, and istaking the initiative to proactively promote environmental protection activities. In the six months ended
September 30, 2013, the Yamato Group made efforts to increase transportation by environmentallyfriendly railway containers by such means as introducing railway containers with the "Nekology" design.
Aspiring to be a company that has a strong bond of trust with the local community, the Yamato Group
promotes various activities to help realize a society in which disabled people can freely enjoy a lifestyle asa member of the workforce. For example, led by Yamato Welfare Foundation, we actively employ disabled
people in the Swan Bakery that makes and sells bread, provide workplaces through the consigned delivery

-5-

d.

of Kuroneko Mail, and operate job-finding support facilities that conduct training of skills and knowledge
necessary for employment.
Aiming to create more sustainable social value, the Yamato Group promoted initiatives for sharing value
with society based on "Creating Shared Value (CSV)." In the six months ended September 30, 2013, theYamato Group worked in collaboration with local governments in numerous regions to develop services
such as supervision of elderly persons as part of TA-Q-BIN pickup and delivery operations.

(2) Qualitative information on consolidated financial position(Assets, liabilities and net assets)
Total assets were 974,139 million yen as of September 30, 2013, up 23,986 million yen from the end of theprevious fiscal year. The major factors in this were an increase of 18,683 million yen in property, plant andequipment accompanying the construction of logistics facilities such as Haneda Chronogate and an increase of
3,172 million yen in investment securities.
Liabilities increased 13,321 million yen to 420,559 million yen from the end of the previous fiscal year. The
major factor was an increase in other current liabilities of 11,046 million yen due to the reporting of scheduled
payments related to purchase of noncurrent assets.
Total net assets were 553,579 million yen, up 10,664 million yen from the end of the previous fiscal year. One of
the major factors was an increase in retained earnings of 7,291 million yen due to the recording of net incomeof 12,376 million yen and the payment of dividends from surplus of 5,084 million yen.
Accordingly, the equity ratio changed to 55.9% from the previous fiscal year’s 56.2%.
(Cash flows)
Net cash provided by operating activities for the six months ended September 30, 2013 amounted to 29,451
million yen, which is an increase of 12,457 million yen compared with the year-ago period. The major factor was
an increase in income before income taxes and minority interests of 6,277 million yen.
Net cash used in investing activities was 23,355 million yen. Compared with the year-ago period, the amount of
net cash used decreased by 8,628 million yen. The major factor was a decrease in purchase of property, plantand equipment of 7,855 million yen.
Net cash used in financing activities was 1,618 million yen. Compared with the year-ago period, the amount of
net cash used decreased by 3,246 million yen. The major factor was an increase of 3,510 million yen in net
cash provided related to loans payable from the net cash used in the year-ago period.
As a result of the above, cash and cash equivalents were 217,515 million yen as of September 30, 2013, up
4,874 million yen from the end of the previous fiscal year.
(3) Qualitative information on consolidated earnings forecasts
Looking at the future of the economy, while the Japanese economy is expected to continue on a moderate
recovery track on the back of internal demand reflecting improved corporate earnings and other factors, theoverseas economic outlook is expected to remain uncertain.
In this environment, the Yamato Group will work to enhance customer convenience and expand revenue in the
Delivery Business by making use of the Group network and strengthening coordination between functions. In
the non-delivery business, we will continue to promote intra-group cooperation while also accelerating our
growth potential and building a robust revenue base by such means as creating new businesses and further
reinforcing solution sales.
On the cost front, although we will strengthen our pickup and delivery capabilities in response to an increase in
TA-Q-BIN delivery volume, we will also work to constrain costs and secure operating income by implementing
measures such as productivity improvements.
Based on the above, the Yamato Group has not made any changes to the consolidated earnings forecasts forthe full year of the fiscal year ending March 31, 2014 since the announcement made on July 31, 2013.

-6-

2. Matters Regarding Summary Information (Notes)
Application of specific accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the income before income taxes by the reasonably estimatedeffective tax rates after the application of tax effect accounting to the income before income taxes for the fiscal
year including the second quarter under review.

-7-3. Consolidated Financial Statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2013

As of September 30, 2013

AssetsCurrent assets
Cash and deposits

213,619

218,213

Notes and accounts receivable-trade163,789

163,387

Accounts receivable-installment

37,45639,199Lease investment assets

22,376

26,730

Merchandise and finished goods

852

867

Work in process

161

326

Raw materials and supplies

2,587

2,375

Other

47,21939,314

Allowance for doubtful accounts(1,654)(1,536)

Total current assets

486,408

488,878

281,096

294,985

Accumulated depreciation(173,496)(176,681)

Buildings and structures, net

107,600

118,303

Noncurrent assets
Property, plant and equipment
Buildings and structures

VehiclesAccumulated depreciation
Vehicles, net
Land
Lease assets

182,678

187,663(168,721)(169,652)

13,95718,010187,107

187,114

23,548

23,100

Accumulated depreciation(12,512)(13,718)

Lease assets, net

11,036

9,381

153,817

159,273(90,362)(90,243)

Other
Accumulated depreciation
Other, net

63,454

69,030383,157

401,840

16,80916,821

Investment securities

22,59725,769Other

42,58742,339Allowance for doubtful accounts(1,184)(1,287)

Allowance for investment loss

(222)

(222)

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

Total investments and other assets
Total noncurrent assets
Total assets-8-

63,77866,598463,744

485,261

950,152

974,139

(Millions of yen)
As of March 31, 2013

As of September 30, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade138,288

135,496

Short-term loans payable

29,81432,597

Lease obligations

4,714

4,716

Income taxes payable

22,441

12,824

Deferred installment income

5,006

5,256

Provision for bonuses

29,08235,594

Other

70,192

81,239Total current liabilities

299,539

307,726

Noncurrent liabilities
Bonds with subscription rights to shares

20,00020,000Long-term loans payable

32,20935,669Lease obligations

7,042

5,365

Provision for retirement benefits

38,17841,322

Other

10,268

10,476

Total noncurrent liabilities

107,698

112,832

407,238

420,559

Capital stock

127,234

127,234

Capital surplus

111,290111,290

Retained earnings

347,358

354,650

Treasury stock(56,495)(56,501)

Total shareholders’ equity

529,387

536,674

Valuation difference on available-for-sale securities

6,095

8,429

Foreign currency translation adjustment(1,032)(217)

Total accumulated other comprehensive income

5,063

8,212

Minority interests

8,463

8,692

Total net assets

542,914553,579

950,152

974,139

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Total liabilities and net assets-9-(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income (cumulative)(Millions of yen)
For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

Operating revenue

617,298

655,818

Operating cost582,430

614,338

Operating gross profit

34,86741,480

Selling, general and administrative expenses

16,833

18,130Operating income

18,03423,350Non-operating income
Interest income

38

49

Dividends income

382

345

Other

1,069

765

Total non-operating income

1,490

1,160

Interest expenses

327

226

Other

271

372

Total non-operating expenses

598

598

18,92623,911Gain on sales of noncurrent assets

500Gain on sales of investment securities—

0

Total extraordinary income

50

1

Loss on retirement of noncurrent assets

115

119

Loss on valuation of investment securities

1,175

3

Other

175

3

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

1,467

126

Income before income taxes and minority interests

Total extraordinary losses

17,50923,787

Income taxes

9,523

11,399

Income before minority interests

7,986

12,388

Minority interests in income (loss)

(97)

11

8,083

12,376

Net income- 10 -

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
For the six months ended
September 30, 2012
Income before minority interests

For the six months ended
September 30, 2013

7,986

12,388(1,245)2,614

Foreign currency translation adjustment

320

848

Total other comprehensive income

(924)

3,463

7,061

15,851

Comprehensive income attributable to owners of the parent

7,241

15,525Comprehensive income attributable to minority interests

(179)

325

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income(Breakdown)- 11 -

(3) Consolidated statements of cash flows(Millions of yen)
For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

Income before income taxes and minority interests

17,50923,787

Depreciation and amortization

17,313

18,491

Increase (decrease) in provision for retirement
benefits

2,844

3,143

Increase (decrease) in provision for bonuses

4,969

6,487

Loss (gain) on valuation of investment securities

1,175

3

Decrease (increase) in notes and accounts
receivable-trade

4,217(5,313)

Increase (decrease) in notes and accounts
payable-trade(7,619)(3,217)

Other, net(4,645)

8,164

Subtotal

35,76551,546

Cash flows from operating activities

Interest and dividends income received

448

399

Interest expenses paid

(505)

(443)

Donation for earthquake recovery initiatives(1,148)－

Income taxes paid

(17,566)(22,051)

Net cash provided by (used in) operating activities

16,99329,451

Purchase of property, plant and equipment(30,433)(22,578)

Proceeds from sales of property, plant andequipment

294

567

Purchase of investment securities

(6)

(5)

Proceeds from sales of investment securities

8

2

Payments of loans receivable

(500)

(711)

Collection of loans receivable

580

704

(3,200)(3,283)

Cash flows from investing activities

Other payments
Other proceeds
Net cash provided by (used in) investing activities- 12 -

1,273

1,949

(31,984)(23,355)

(Millions of yen)
For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

Increase in short-term loans payable

41,39931,852

Decrease in short-term loans payable(31,357)(36,784)

Repayments of finance lease obligations(2,724)(2,460)

Proceeds from long-term loans payable885

11,406

Repayment of long-term loans payable(8,524)

(562)

(2)

(5)

(4,729)(5,082)

Cash flows from financing activities

Purchase of treasury stock
Cash dividends paid
Other, net

190

17

Net cash provided by (used in) financial activities(4,864)(1,618)

Effect of exchange rate change on cash and cash
equivalents

53

396

Net increase (decrease) in cash and cash equivalents(19,801)

4,874

Cash and cash equivalents at beginning of period

208,393

212,641

Increase in cash and cash equivalents from newly
consolidated subsidiary

1,403

—

189,995

217,515

Cash and cash equivalents at end of period- 13 -

(4) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Segment information, etc.)[Segment information]
Information regarding the amounts of operating revenue and income or loss by reportable segment
For the six months ended September 30, 2012

(Millions of yen)

BIZ-Logistics

Home
Convenience

e-Business

Financial

495,366

41,83121,06017,76227,011

26,472

6,053

7,404

13,383

1,977

521,838
7,571

47,8852,214

28,465(1,163)31,1452,647

28,9894,177

Reconciliation(Note 3)

Amountrecorded inconsolidated
statements ofincome(Note 4)

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

Autoworks

Other(Notes 1, 2)

Total

Operating revenue(1) Operating revenue from customers
11,671
2,594
617,298—
617,298(2) Inter-segment operating revenue or
35,179104,259(104,259)—
13,788transfers
Total
25,46037,773
721,557(104,259)
617,298
Segment income (loss)
1,517
17,922
34,887(16,852)
18,034
Notes: 1. Other includes business-to-business distribution via JITBOX Charter, staffing services 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 17,553 million yen.
3. The adjustment of segment income resulted from eliminating transactions among segments.
4. We made an adjustment between segment income and operating income in the consolidated statements of income.

- 14 -

For the six months ended September 30, 2013
BIZ-Logistics

e-Business

Financial

524,531

43,774

22,46819,90529,73429,025

5,664

7,232

14,2001,845

553,556
11,44949,4391,734

29,700(637)

34,105
3,495

31,5804,401

Reconciliation(Note 4)

Amountrecorded inconsolidated
statements ofincome(Note 5)

DeliveryOperating revenue(1) Operating revenue from customers(2) Inter-segment operating revenue ortransfers
Total
Segment income (loss)(Millions of yen)Home
Convenience

Autoworks(Note 1)

Other
(Notes 2,3)

Total

Operating revenue(1) Operating revenue from customers
12,3583,046
655,818—
655,818(2) Inter-segment operating revenue or
14,05542,196114,220(114,220)—transfers
Total
26,41445,242770,039(114,220)655,818
Segment income (loss)
1,863
24,416
46,723(23,373)
23,350Notes: 1. Effective from the three months ended June 30, 2013, the reportable segment "Truck Maintenance" has been renamed"Autoworks." The segment information for the six months ended September 30, 2012 is presented using the name after thechange.
2. Other includes business-to-business distribution via JITBOX Charter, staffing services 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 24,104 million yen.
4. The adjustment of segment income resulted from eliminating transactions among segments.
5. We made an adjustment between segment income and operating income in the consolidated statements of income.

(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.

- 15 -

4. Supplementary Information
Operating revenue by businessBusiness segment

For the six months
ended September 30, 2012
AmountRatio(Millions of yen)(%)
68.4
422,198
10.2
63,323
3.4
20,9905.030,815(6.8)(41,961)80.2
495,366
2.8
17,0642.4
14,901
0.7
4,079
0.3
1,914
2.8
17,650(2.2)(13,778)
41,8316.8
3.1
19,183
1.5
9,294
(1.2)
(7,417)
3.4
21,060
0.8
4,941
0.6
3,462
0.3
2,107

For the six months
ended September 30, 2013
AmountRatio(Millions of yen)(%)
456,560
69.6
62,578
9.5
21,684
3.3
29,283
4.5(45,574)(6.9)
524,53180.0
18,121
2.8
15,072
2.3
4,887
0.7
1,852
0.3
18,1192.8(14,278)(2.2)
43,774
6.7
20,284
3.1
9,430
1.4
(7,247)(1.1)
22,468
3.4
5,209
0.8
3,849
0.6
2,348
0.3

Change(%)

Fiscal year ended
March 31, 2013
AmountRatio(Millions of yen)(%)
880,17168.6
128,309
10.0
42,635
3.3
65,116
5.1(88,013)(6.8)
1,028,219
80.2
36,4792.8
30,180
2.4
8,714
0.7
3,701
0.3
35,296
2.8(27,566)(2.2)
86,806
6.8
40,586
3.2
18,788
1.5(14,773)(1.2)
44,601
3.5
10,137
0.8
7,092
0.6
4,383
0.3

TA-Q-BIN
8.1
Kuroneko Mail
(1.2)
Express
3.3
Delivery
Others(5.0)
Eliminations
8.6
Total
5.9
Trade logistics service
6.2
Retail logistics service
1.1
Multi maintenance
19.8
BIZ-Logistics Export Factory(3.2)
Others2.7
Eliminations
3.6
Total
4.6
Home convenience
5.7
Business convenience
1.5
HomeConvenience Eliminations
(2.3)
Total
6.7
e-logistics solution
5.4
Credit card solution
11.2
IT operating solution
11.4
Web-based
mail
order
e-Business
0.5
3,832
0.6
13.0
7,075
3,391
solution
Others3.1
19,8343.0
4.5
39,73918,986
Eliminations(2.4)(15,168)(2.3)
0.3(31,368)(15,126)
Total
2.9
19,9053.0
12.1
37,06017,762
TA-Q-BIN Collect
2.9
19,0442.9
7.8
37,71017,659
Lease
1.4
9,911
1.5
11.1
18,124
8,918
Credit & Finance
0.3
1,633
0.2
(6.4)
3,278
1,745
Financial
Others
0.1
1,030
0.2
46.9
1,584
701
Eliminations(0.3)(1,885)(0.3)(6.3)(3,987)(2,013)
Total
4.4
29,734
4.5
10.1
56,71027,011
Truck maintenance
3.8
24,3883.7
3.0
47,27923,677
Others
0.5
3,183
0.5
7.8
5,909
2,953
Autoworks
Eliminations(2.4)(15,213)(2.3)
1.7(29,960)(14,959)
Total
1.9
12,3581.9
5.9
23,228
11,671JITBOX Charter service
0.3
2,031
0.3
24.0
3,504
1,638
Others6.0
44,056
6.7
19.0
56,58737,037
Other
Eliminations(5.9)(43,041)(6.5)
19.3(54,345)(36,080)
Total
0.4
3,046
0.5
17.4
5,746
2,594
Total
100.0
655,818100.0
6.2
1,282,373
617,298* Effective from the three months ended June 30, 2013, the segment "Truck Maintenance" has been renamed “Autoworks.”- 16 -

0.5
3.1
(2.4)
2.9
2.9
1.4
0.3
0.1
(0.3)
4.4
3.7
0.4
(2.3)
1.8
0.3
4.4
(4.3)
0.4
100.0