Financial Section
40	Ten-Year Summary and Business Highlights
42

Consolidated Balance Sheet

44

Consolidated Statement of Income

45	Consolidated Statement of Comprehensive Income46	Consolidated Statement of Changes in Equity
47	Consolidated Statement of Cash Flows48	Notes to Consolidated Financial Statements
68

Independent Auditor’s Report

YAMATO HOLDINGS CO., LTD.
Integrated Report 201739

Ten-Year Summary and Business Highlights

2008/3

2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

RESULTS OF OPERATIONS:
Operating revenues¥1,225,974 ¥1,251,922 ¥1,200,834 ¥1,236,520 ¥1,260,833 ¥1,282,374 ¥1,374,610

Delivery

981,142

997,898

966,480

995,651

1,014,564

1,028,219

Non-delivery

244,832

254,024

234,354240,869

246,269

254,155

275,210

Operating costs

1,129,008

1,167,764

1,110,971

1,143,006

1,163,777

1,181,834

1,274,471

Selling, general and administrative expenses

28,78628,43728,47429,20030,40534,33737,043Operating income
Income before income taxes
and minority interests

68,18055,721

61,38964,314

66,651

66,20363,096

67,59648,99660,434

61,83645,81764,28465,882

Income taxes
Net income attributable to owners of parent

31,44735,353

23,34925,52328,09632,28228,491
33,20826,05919,78729,56335,14431,003
34,776PER SHARE OF COMMON STOCK:
Basic net income
Diluted net income
Cash dividends
Net assets per share
Stock price (closing), end of year¥    79.80 ¥    57.60 ¥    71.84 ¥    73.42 ¥    46.00 ¥    81.85 ¥    82.22
78.12
56.45
71.16
73.30
44.87
79.84
80.18
22.00
22.00
22.00
22.00
22.00
23.00
24.00
1,050.99
1,073.86
1,130.33
1,173.60
1,197.26
1,261.35
1,316.12
1,460
927
1,314
1,290
1,279
1,740
2,224

FINANCIAL POSITION:
Working capital
Total shareholders’ equity
Total assets
Capital expenditures
Depreciation and amortization
Net cash provided by operating activities¥  125,355 ¥  159,937 ¥  165,890 ¥  185,922 ¥  182,111 ¥  186,868 ¥  179,999
465,801
475,815
512,910515,602514,996
534,451
551,379874,219
869,606
878,641
899,363919,295
950,153 1,032,134
124,832
45,85639,70052,472
48,61548,052
79,531
44,772
42,69739,88339,58338,68237,93642,266
116,896
84,46377,06487,89971,84373,95080,075

KEY RATIOS:
Operating income margin (%)

5.56

4.45

5.11

5.20

5.29

5.16

4.59

Net margin (%)

2.88

2.04

2.69

2.69

1.57

2.74

2.53

4.15
7.76
144.8953.28
1.44
223.00
18.3
1.4

2.93
5.42
158.00
54.72
1.44
58.57
16.1
0.9

3.69
6.53
159.82
58.38
1.37
88.35
18.3
1.2

3.74
6.46
170.34
57.33
1.39
73.71
17.6
1.1

2.18
3.84
164.50
56.02
1.39
90.52
27.8
1.1

3.76
6.70
162.3956.25
1.37
108.36
21.3
1.4

3.51
6.41
151.8253.42
1.39
153.4127.0
1.7

169,836
80,843
88,993
1,236
644

170,662
82,601
88,061
1,232
646

167,555
82,39585,1601,262
624

171,642
83,427
88,215
1,348
609

177,301
84,29393,0081,423
600

177,108
84,422
92,6861,487
591

193,146
87,279105,867
1,665
574

2,206
64

2,231
65

2,262
65

2,312
64

2,187
62

2,112
61

2,084
61

Return on assets (ROA) (%)
Return on equity (ROE) (%)
Current ratio (%)
Shareholders’ equity ratio (%)
Assets turnover (Times)
Interest coverage ratio (Times)
Price earnings ratio (PER) (Times)
Price book-value ratio (PBR) (Times)
NON-FINANCIAL DATA:
Number of employees
Full-timePart-time
TA-Q-BIN delivery volume (Millions of parcels)
Unit price (Yen)
Kuroneko DM-Bin handling volume(Millions of units)
Unit price (Yen)

Foreign currency translation: U.S. dollar amounts have been translated, for convenience only, at the rate of ¥112.19 to U.S. $1.
Note: On March 31, 2015, we ceased accepting items for Kuroneko Mail and from April 1 launched Kuroneko DM-Bin.

40

1,099,400

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

2015/3

2016/3

Millions of Yen
2017/3Thousands of
U.S. Dollars
2017/3¥1,396,708 ¥1,416,413 ¥1,466,852$13,074,713

1,101,439

10,259,634

1,111,867

1,151,028

295,269

304,546

315,824

2,815,079

1,290,715

1,306,200

1,385,492

12,349,517

37,046

41,673

46,475414,247

68,947

68,54034,885

310,949

69,15868,07933,038294,479

31,55537,53328,41539,425

14,67318,054

130,784
160,921

Yen¥    90.41 ¥    96.45 ¥    45.37
88.26
95.64
—
25.00
28.00
27.00
1,368.66
1,349.56
1,367.51
2,772
2,247
2,332.5
Millions of Yen¥  209,172 ¥  235,884 ¥  214,661
565,521537,821539,179
1,082,531
1,089,437
1,114,672
52,022
53,94548,99446,05846,73946,114
92,62049,71573,325

4.94

4.84

2.38

2.69

2.78

1.23

3.55
6.75
158.5952.24
1.32
173.45
30.7
2.0

3.63
7.15
167.7649.37
1.30
125.33
23.3
1.7

1.64
3.35
157.73
48.37
1.33
81.45
51.4
1.7

U.S. Dollars$ 0.40
—
0.24
12.19
—
Thousands of
U.S. Dollars$1,913,373
4,805,949
9,935,576
436,704
411,037
653,575

Analysis of Operating Revenues(¥ billion)

1,416.4

FY16/3+39.1

Delivery+1.8

BIZ-Logistics

Home Convenience +0.1
e-Business

+2.2
+5.5

Financial

Autoworks +0.1

+1.3

Other

1,466.8

FY17/3

YoY +50.4

Analysis of Operating Income(¥ billion)

68.5

FY16/3
Revenue increase+50.4

Increase in personnel expenses+50.2

Subcontracting
expenses+38.2

Vehicleexpenses (0.2)

+9.0

Other

(13.1)

Elimination

34.8

FY17/3

YoY (33.6)

Quarterly YoY Growth Rates of TA-Q-BIN Delivery Volume
and Unit Price(%)

197,056
88,247
108,809
1,622
595

196,582
89,112
107,470
1,731
578

201,784
90,737
111,047
1,867
559

1,901
61

1,536
57

1,542
55

20
15
10
5
0
(5)
(10)

1Q

2Q

3Q

4Q

1Q

2015/3TA-Q-BIN Delivery Volume Growth Rate
TA-Q-BIN Unit Price Growth Rate

2Q

3Q

2016/3

4Q

1Q

2Q

3Q

4Q

2017/3

Delivery Volume:
YoY + 7.9%
Unit Price:
YoY (3.3)%

YAMATO HOLDINGS CO., LTD.
Integrated Report 201741

Consolidated Balance Sheet
March 31, 2017

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

ASSETS

2017

2016

2017

¥ 230,129¥ 249,594$ 2,051,241  Trade208,131

197,382

1,855,165   Installment (Note 4)

46,142

43,648411,280   Lease (Note 13)

50,77748,894

452,601   Allowance for doubtful accounts(1,283)(1,079)(11,433)

Inventories (Note 5)

2,775

2,858

24,735

Deferred tax assets (Note 12)

20,684

14,907

184,370

Prepaid expenses and other current assets

CURRENT ASSETS:
Cash and cash equivalents (Notes 2.d and 14)
Notes and accounts receivable (Note 14):

29,15527,778259,870    Total current assets

586,510

583,982

5,227,829

PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
Vehicles178,621341,134
194,073

176,139
326,889
196,054

1,592,127
3,040,683
1,729,860

123,569
16,44911,749126,243
15,411
23,538

1,101,430
146,615
104,725

Machinery and equipment
Leased assets (Note 13)
Construction in progress
Others23,492

21,700209,396    Total

889,087

885,974

7,924,836

Accumulated depreciation(484,017)(480,332)(4,314,260)     Net property, plant and equipment

405,070

405,6423,610,576

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 6 and 14)
Investments in and advances to unconsolidated subsidiaries and affiliates (Note 14)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 12)

32,58822,086968
18,14916,232
26,64330,3291,169
1,010
14,526
16,45327,008290,474
196,859
8,631
161,772
144,683
237,481

Other assets (Notes 2.k and 9)     Total investments and other assets
TOTAL
See notes to consolidated financial statements.

42

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

6,426

9,318

57,271

123,092

99,813

1,097,171¥1,114,672¥1,089,437$ 9,935,576

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

LIABILITIES AND EQUITY

2016

2017

2017

CURRENT LIABILITIES:
Short-term bank loans (Notes 8 and 14)
Current portion of long-term debt (Notes 8, 14 and 15)¥

23,615$ 179,143

43,30434,829385,987

155,736

148,456

1,388,147

20,098¥Notes and accounts payable (Note 14):  Trade  Other

8,680

14,461

77,365

Income taxes payable

14,40019,783

128,353

Accrued expenses

68,16662,508607,591

Deferred profit on installment sales (Notes 4 and 14)

6,010

5,895

Provision for special wage payments (Note 2.j)15,129Other current liabilities (Note 10)

53,571
134,854

40,32638,551

359,445

371,849

348,098

3,314,456

Long-term debt (Notes 8, 14 and 15)

114,767

115,903

1,022,966

Liability for employees’ retirement benefits (Notes 2.k and 9)

70,952

71,551

632,428

Deferred tax liabilities (Note 12)

3,162

2,800

28,187

Other long-term liabilities (Note 10)

8,383

7,230

74,725

197,264

197,484

1,758,306

Common stock—authorized, 1,787,541,000 shares in 2017 and 2016;
issued, 411,339,992 shares in 2017 and 2016

127,235

127,235

1,134,101

Capital surplus

36,81336,813

328,132

Retained earnings

409,271402,376

3,648,015

Treasury stock—at cost, 17,062,391 shares in 2017 and
12,823,544 shares in 2016

(39,078)(29,076)(348,314)

10,975

9,790

97,826(423)

751(3,770)    Total current liabilities
LONG-TERM LIABILITIES:    Total long-term liabilities
COMMITMENTS LIABILITIES (Note 13)
EQUITY (Notes 11 and 19):

Accumulated other comprehensive income:   Unrealized gain on available-for-sale securities   Foreign currency translation adjustments   Remeasurements of defined employees’ retirement benefit plans (Notes 2.k and 9)    Total
Non-controlling interests    Total equity
TOTAL(5,614)(10,068)(50,041)

539,179

537,8214,805,949

6,380

6,034

56,865545,559543,855

4,862,814¥1,114,672¥1,089,437$9,935,576

YAMATO HOLDINGS CO., LTD.
Integrated Report 201743

Consolidated Statement of Income
Year Ended March 31, 2017

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2017

2016

2017

¥1,466,852¥1,416,413$13,074,713

1,385,492

1,306,200

12,349,517

46,47541,673414,247

1,431,967

1,347,873

12,763,764

34,88568,540310,949

Interest and dividend income

847

833

7,548

Interest expense

(430)

(548)

(3,835)

Loss on sales and disposal of property, plant and equipment—net

(66)

(91)

(590)

(1,284)(1,155)(11,447)

600

54

5,347

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

Loss on impairment of long-lived assets (Note 7)
Gain on sales of marketable and investment securities (Note 6)
Loss on valuation of investment securities (Note 6)
Loss on valuation of investment in unconsolidated subsidiaries and affiliates

(1)

(5)

(209)

(1,867)

Share of loss of entities accounted for using equity method(799)(7,123)

Disaster recovery expenses for the Kumamoto Earthquake(886)(7,897)

Other—net

381

446

3,399

  Other expenses—net(1,847)(461)(16,470)

INCOME BEFORE INCOME TAXES

33,03868,079294,479

Current

22,09427,435

196,932

Deferred(7,421)

980(66,148)   Total income taxes

14,67328,415

130,784

NET INCOME

18,36539,664

163,695

INCOME TAXES (Note 12):NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTSNET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

239

311
¥

18,054¥39,425

2,774$

160,921
U.S. Dollars(Note 1)

Yen
2017

2016

¥45.37¥96.452017

PER SHARE OF COMMON STOCK (Notes 2.r and 17):
Basic net income
Diluted net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

44

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

$0.40

95.64
27.00

28.00

0.24

Consolidated Statement of Comprehensive Income
Year Ended March 31, 2017

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2017

2016

¥18,365¥ 39,664

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

1,269(3,976)

11,311

Foreign currency translation adjustments(1,174)(419)(10,468)

Remeasurements of defined employees’ retirement benefit plans

4,456(10,787)

39,722

4,552(15,182)

40,572¥22,917¥ 24,482$204,267¥22,519¥ 24,166$200,718

398

316

3,549

NET INCOME

2017$163,695

OTHER COMPREHENSIVE INCOME (Note 16):

Share of other comprehensive income of entities accounted for using equity method   Total other comprehensive income (loss)
COMPREHENSIVE INCOME

1

7

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

YAMATO HOLDINGS CO., LTD.
Integrated Report 201745

Consolidated Statement of Changes in Equity
Year Ended March 31, 2017

Thousands

Millions of Yen
Accumulated Other Comprehensive Income

BALANCE,APRIL 1, 2015

Outstanding
Number of
Shares ofCommon Stock

Common Stock413,194¥127,235

Capital Surplus Retained Earnings Treasury Stock¥ 70,209¥395,353¥(43,008)

Remeasurements
Unrealizedof Defined
Foreign Currency
Employees’Gain onAvailable-for-Sale
Translation
Retirement Benefit
Securities
Adjustments
Plans¥13,848¥ 1,169¥715

Non-controlling
Interests

Total¥565,521¥5,678

Total Equity¥571,199 
Net income attributableto owners of the parent

39,42539,42539,425 
Cash dividends,¥26 per share(10,674)(10,674)(10,674)

88

88

88

(50,006)(50,006)(50,006)

11,207

9,570

9,570

 
Adjustment of retained
earnings for changes
in the scope of
consolidation 
Purchase oftreasury stock(19,851) 
Disposal oftreasury stock

5,173(1,637) 
Retirement oftreasury stock(30,915) 
Change in equity related
to transaction with noncontrolling shareholders(21,816)

52,731

(844)

(844)

 
Net change in the year
BALANCE,MARCH 31, 2016

398,516

127,235

36,813402,376(29,076)(844)(4,058)(418)(10,783)(15,259)356(14,903)

9,790

751

(10,068)

537,8216,034

543,855 
Net income attributableto owners of the parent

18,05418,05418,054 
Cash dividends,¥28 per share(11,159)(11,159)(11,159)(10,002)(10,002) 
Purchase oftreasury stock(4,239) 
Disposal oftreasury stock

1(10,002) 
Net change in the year
BALANCE,MARCH 31, 2017394,278¥127,235¥ 36,813¥409,271¥(39,078)

1,185(1,174)

4,454

4,465

346

4,811

¥10,975¥  (423)¥ (5,614)¥539,179¥6,380¥545,559

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

Common Stock

BALANCE,MARCH 31, 2016

$1,134,101

Capital Surplus Retained Earnings Treasury Stock$328,132$3,586,554$(259,163)

Foreign
Currency
Translation
Adjustments$87,267$ 6,691

Remeasurementsof Defined
Employees’
Retirement Benefit
Plans

Non-controlling
Interests

Total$(89,740) $4,793,842$53,786

Total Equity$4,847,628 
Net income attributableto owners of the parent

160,921

160,921

160,921 
Cash dividends,$0.25 per share(99,460)(99,460)(99,460)(89,155)(89,155) 
Purchase oftreasury stock(89,155) 
Disposal oftreasury stock4 
Net change in the year
BALANCE,MARCH 31, 2017

$1,134,101

See notes to consolidated financial statements.

46

Unrealized
Gain onAvailable-for-Sale
Securities

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

$328,132$3,648,015$(348,314)

4
10,559(10,461)$97,826$ (3,770)

39,6994

39,7973,079

42,876$(50,041) $4,805,949$56,865$4,862,814

Consolidated Statement of Cash Flows
Year Ended March 31, 2017

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2016

2017

2017

OPERATING ACTIVITIES:
Income before income taxes¥ 33,038¥ 68,079$ 294,479  Income taxes—paid(32,138)(29,228)(286,461)   Depreciation and amortization

46,12646,758411,142

Adjustments for:   Loss on sales and disposal of property, plant and equipment—net

66

91

590

   Loss on impairment of long-lived assets

1,284

1,155

11,447   Gain on sales of marketable and investment securities

(600)

(54)

(5,347)   Loss on valuation of investment securities

1

5   Loss on valuation of investment in unconsolidated subsidiaries and affiliates

209

1,867

   Share of loss of entities accounted for using equity method

799

7,123

   Changes in assets and liabilities, net of effects from newly consolidated subsidiaries:    Increase in notes and accounts receivable(15,594)(15,422)(138,998)

20

473

173

    Increase (decrease) in notes and accounts payable

7,454(9,137)    Increase in provision for special wage payments

15,129   Decrease in inventories

66,441
134,854    Increase in liability for employees’ retirement benefits

1,898

2,376

16,915  Other—net

15,633(15,376)

139,345    Total adjustments

40,287(18,364)

359,096     Net cash provided by operating activities

73,32549,715653,575

INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment

1,874

17,273

16,708(43,987)(37,426)(392,075)

1,600

110

14,258Purchases of marketable and investment securities(1,714)(1,846)(15,272)

Increase in investments in and advances to unconsolidated subsidiaries and affiliates(22,507)(591)(200,614)

Purchases of property, plant and equipment
Proceeds from sales of marketable and investment securities

Collection of loans

1,017

1,054

9,062

Payment of loans(975)(1,020)(8,691)(9,308)(7,784)(82,967)(74,000)(30,230)(659,591)

Other     Net cash used in investing activities
FINANCING ACTIVITIES:(Repayments of) proceeds from short-term debt—net(5,802)

2,708(51,719)

Proceeds from long-term debt

43,72058,865

389,698

Repayments of long-term debt

(35,499)(16,857)(316,419)

Dividends paid

(11,209)(10,721)(99,908)

Purchase of treasury stock—net(10,005)(50,013)(89,180)

17

(815)

156

(18,778)(16,833)(167,372)

Other     Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(883)

(654)

(7,868)(20,336)

1,998(181,256)

CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATED SUBSIDIARIES,BEGINNING OF YEAR

213

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

249,262

247,051

2,221,781

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.d)¥228,926¥249,262$2,040,525¥¥ (1,637)$

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Decrease in capital surplus due to exercise of stock acquisition rights—

Decrease in treasury stock due to exercise of stock acquisition rights

11,207

Decrease in zero coupon convertible bonds due to exercise of stock acquisition rights

9,570

—

See notes to consolidated financial statements.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201747

Notes to Consolidated Financial Statements
Year Ended March 31, 2017

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2016 consolidated financial statements to conform them to the classifications and presentations used in 2017.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Yamato Holdings Co.,
Ltd. (the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts areincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥112.19 to $1, the approximate
rate of exchange at March 31, 2017. Such translations should not be construed as representations that the Japanese yen amounts
could be converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2017, include the accounts of the Company and its 39
significant (40 in 2016) subsidiaries (together, the “Group”).
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able to exercise
control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant
influence are accounted for by the equity method.
The unconsolidated subsidiaries, whose combined assets, net sales, net income and retained earnings in the aggregate are notsignificant to the consolidated financial statements, have not been consolidated with the Company.
There were 14 affiliates accounted for by the equity method in 2017. No affiliates were accounted for by the equity method
in 2016.
Effective from the fiscal year ended March 31, 2017, the scope of equity method includes GD EXPRESS CARRIER BHD.,
Packcity Japan Co., Ltd. and GUANGZHOU WISEPOWER TRANSPORTATION & DISTRIBUTION GROUP CO., LTD. following the
new acquisition of shares, and also includes 11 subsidiaries of GD EXPRESS CARRIER BHD.
Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated at cost,less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If theequity method of accounting had been applied to the investments in such companies, the effect on the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Group is also eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements—Under
Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements,” the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events under similar circumstances should in
principle be unified for the preparation of the consolidated financial statements. However, financial statements prepared by foreignsubsidiaries in accordance with either International Financial Reporting Standards or generally accepted accounting principles in
the United States of America tentatively may be used for the consolidation process, except for the following items which should be
adjusted in the consolidation process so that net income is accounted for in accordance with Japanese GAAP, unless they are notmaterial: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity
through other comprehensive income; (c) expensing capitalized development costs of R&D; and (d) cancellation of the fair value
model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting.
c. Recognition of Operating Revenues—The Group recognizes freight charge income as operating revenue at the time when
freight has been received from the shipping customer for transportation.
Fees from customers based on installment sales contracts are recognized by the equal installment method.

48

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

d. Cash Equivalents—Cash equivalents in the consolidated statement of cash flows are short-term investments that are readily
convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statement of cash flows include time deposits, certificates of deposit, and mutual funds investing in bonds that represent short-term
investments, all of which mature or become due within three months of the date of acquisition.
The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash equivalents in the accompanying consolidated statement of cash flows was as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

Cash and cash equivalents presented in the consolidated balance sheet
Time deposits due beyond three months¥230,129

2016

2017

¥249,594(1,203)

Bank overdraft$2,051,241(10,716)(332)

Cash and cash equivalents presented in the consolidated statement of cash flows¥228,926¥249,262$2,040,525

e. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.
f. Marketable and Investment Securities—Marketable and investment securities are classified and accounted for, dependingon management’s intent, as follows: (1) trading securities, which are held for the purpose of earning capital gains in near term,
are reported at fair value, and the related unrealized gains and losses are included in earnings; (2) held-to-maturity debt securities, for which there is a positive intent and ability to hold to maturity, are reported at amortized cost; and (3) available-for-salesecurities, which are not classified as either of the aforementioned securities, are reported at fair value, with unrealized gains
and losses, net of applicable taxes, reported in a separate component of equity. The Group had no trading securities at March 31,2017 and 2016.
Non-marketable available-for-sale securities are stated at cost determined by the moving-average method.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to income.
g. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantially by the­declining-balance method, while the straight-line method is applied to buildings acquired on or after April 1, 1998, and facilities
attached to buildings and structures acquired on or after April 1, 2016. Depreciation of leased assets is computed by the straightline method over the lease period with no residual value carried.
The depreciation of property, plant and equipment of foreign consolidated subsidiaries is computed by the straight-line
method over the estimated useful lives of the assets. The range of useful lives is principally as follows:
Buildings and structures
Vehicles		
Machinery and equipment

7–60 years
2– 7 years
2–20 years

Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.
h. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circumstancesindicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized if the carrying
amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continued
use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which thecarrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling price at disposition.
i. Other Assets—Amortization of intangible assets is computed by the straight-line method.
Depreciation of leased assets is computed by the straight-line method over the lease period with no residual value carried.
j. Provision for Special Wage Payments—The Group conducted investigation during the fiscal year ended March 31, 2017, inorder to measure unrecognized working hours. The provision for special wage payments has been recorded on the basis of theestimated amount of payment with regard to consideration for labor in accordance with the result of the investigation.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201749

Notes to Consolidated Financial Statements

k. Retirement and Pension Plan—The Company and consolidated subsidiaries mainly have a contributory trusted pension
plan and an unfunded retirement benefit plan. In addition, a defined contribution retirement plan was introduced along withthese defined benefit pension plans.
In calculating the retirement benefit obligations, the straight-line basis is used in determining the amount of the expected
retirement benefit obligations attributed to service performed up to the end of the current fiscal year.
Past service costs are recognized in profit or loss in full in the fiscal year in which it arises. Actuarial gains and losses areamortized on a straight-line basis over five years within the average remaining service period of the eligible employees on andafter the fiscal year following the fiscal year in which it arises.
Actuarial gains and losses are recognized within equity on the consolidated balance sheet after adjusting for tax effects, andfunded status is recognized as a liability or asset.
l. Asset Retirement Obligations—An asset retirement obligation is recorded for a legal obligation imposed either by law orcontract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset and is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset retirement
and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability should berecognized when a reasonable estimate of the asset retirement obligation can be made. Upon initial recognition of a liability for
an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset
by the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to
the timing or the amount of the original estimate of undiscounted cash flows are reflected as reconciliation to the carrying
amount of the liability and the capitalized amount of the related asset retirement cost.
m. Leases—For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations in thebalance sheet.
For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized as leasereceivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee are recognized as
investments in leases.
n. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes
are measured by applying currently enacted tax rates to the temporary differences.
The Company applied ASBJ Guidance No. 26, “Guidance on Recoverability of Deferred Tax Assets,” effective April 1, 2016.
There was no impact from this for the year ended March 31, 2017.
o. Foreign Currency Transactions—All short and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date.
p. Derivative Financial Instruments—The Company and certain consolidated subsidiaries use derivative financial instruments tomanage their exposures to fluctuations in interest rates. Interest rate swaps are utilized by the Company and the consolidated subsidiaries to reduce interest rate risks. The Group has a policy not to enter into derivatives for trading or speculative purposes.
The interest rate swaps, which qualify for hedge accounting and meet specific matching criteria, are not remeasured at market
value but the differential paid or received under the swap agreements is recognized and included in interest expense or income.
q. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are translated
into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historicalrate. Differences arising from such translation are shown as “Foreign currency translation adjustments” under accumulated othercomprehensive income in a separate component of equity.
Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current
exchange rates as of the balance sheet date.

50

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

r. Per Share Information—Basic net income per share is computed by dividing net income attributable to common shareholders
by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into
common stock. Diluted net income per share of common stock assumes full conversion of the outstanding convertible notes andbonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net oftax, and full exercise of outstanding warrants.
For the year ended March 31, 2017, diluted net income per share is not disclosed because the Company had no dilutive securities.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicable to therespective years, including dividends to be paid after the end of the year.
s. Accounting Changes and Error Corrections—Under ASBJ Statement No. 24, “Accounting Standard for Accounting Changes
and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for Accounting Changes and Error
Corrections,” accounting treatments are required as follows:(1) Changes in Accounting Policies—When a new accounting policy is applied following revision of an accounting standard,
the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provisions, inwhich case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—When the presentationof financial statements is changed, prior-period financial statements are reclassified in accordance with the new presentation.
(3) Changes in Accounting Estimates—A change in an accounting estimate is accounted for in the period of the change if the change
affects that period only, and is accounted for prospectively if the change affects both the period of the change and future periods.
(4) Corrections of Prior-Period Errors—When an error in prior-period financial statements is discovered, those statements are restated.

3. ACCOUNTING CHANGESApplication of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016—Following the revision to
the Corporation Tax Act, the Company has applied the “Practical Solution on a Change in Depreciation Method Due to Tax Reform
2016” (ASBJ PITF No.32) since the fiscal year ended March 31, 2017, and changed the depreciation method for facilities attached
to buildings and structures acquired on or after April 1, 2016, from the declining-balance method to the straight-line method.
As a result of this change, operating income and income before income taxes increased by ¥189 million ($1,685 thousand) for
the fiscal year ended March 31, 2017.

4. NOTES AND ACCOUNTS RECEIVABLE
Sales recorded on the installment basis were 0.3% of operating revenues in both 2017 and 2016.
Annual maturities of notes and accounts receivable—installment at March 31, 2017, and related amortization of deferredprofit on installment sales are as follows:
Millions of Yen
Year Ending March 31

Receivables

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

Deferred Profit on
Installment Sales

Receivables

2018¥22,982¥2,346$204,848$20,9092019

11,403

1,657

101,638

14,776

2020

6,422

1,023

57,240

9,120

2021

3,123

531

27,835

4,730

2022

1,464

276

13,0482,4582023 and thereafter
Total

748

177

6,671

1,578

¥46,142¥6,010$411,280$53,571

YAMATO HOLDINGS CO., LTD.
Integrated Report 201751

Notes to Consolidated Financial Statements

5. INVENTORIESInventories at March 31, 2017 and 2016, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Merchandise

2017

2016

2017

¥  740¥  738$ 6,594

Work in process

216

184

1,929

Raw materials and supplies

1,819

1,936

16,212

Total¥2,775¥2,858$24,735

6. MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2017 and 2016, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2016

2017

2017

Non-current:
Marketable equity securities¥31,350¥29,216$279,435

Non-marketable equity securities

743

719

6,627

Other

495

394

4,412

¥32,588¥30,329$290,474

Total

Information regarding each category of the securities classified as available-for-sale at March 31, 2017 and 2016, is as follows:
Millions of Yen
2017
Cost

Unrealized Gains

Unrealized Losses¥15,540¥5Fair Value

Securities classified as:
Available-for-sale: Equity securities¥15,815¥31,350

Millions of Yen
2016
Cost

Unrealized Gains

Unrealized Losses¥14,048¥84

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥15,252¥29,216

Thousands of U.S. Dollars
2017
Cost

Unrealized Gains

Unrealized Losses$138,514$47

Fair Value

Securities classified as:
Available-for-sale: Equity securities$140,968$279,435

Information for available-for-sale securities, which were sold during the years ended March 31, 2017 and 2016, is as follows:
Millions of Yen
March 31, 2017

Available-for-sale: Equity securities

Proceeds

Realized Gains

Realized Losses¥1,543

¥600

¥—

¥110

¥54

¥—

March 31, 2016

Available-for-sale: Equity securities

Thousands of U.S. Dollars
March 31, 2017

Available-for-sale: Equity securities

Proceeds$13,751

Realized Gains

Realized Losses$5,347$—

Loss on valuation of available-for-sale equity securities for the year ended March 31, 2017, was ¥1 million ($5 thousand).

52

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

7. LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2017 and 2016. As a result, the Group
recognized an impairment loss of ¥1,284 million ($11,447 thousand) as other expense for the asset groups of the Aomori Regional
Branch of Yamato Transport Co., Ltd. and nine other asset groups for the year ended March 31, 2017, and ¥1,155 million as otherexpense for the asset groups of the Tokushima Regional Branch of Yamato Transport Co., Ltd. and eight other asset groups for theyear ended March 31, 2016, due to continuous operating losses of those units or significant declines in market prices. The carrying amounts of the relevant asset groups were written down to their recoverable amounts. In the case where the net selling prices
were used as recoverable amounts, the relevant asset groups were evaluated mainly based on Real Estate Appraisal Standards,
assessed value of fixed assets, and posted land prices.

8. BANK LOANS AND LONG-TERM DEBT
Short-term bank loans at March 31, 2017 and 2016, consisted of notes to banks and bank overdrafts. The weighted-average interest
rates applicable to the bank loans as of March 31, 2017 and 2016, were approximately 0.103% and 0.708%, respectively.
Long-term debt at March 31, 2017 and 2016, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2017

0.010% to 0.430% loans from banks due 2017 to 2022

2016

2017

¥130,776

0.010% to 5.500% loans from banks due 2016 to 2020

$1,165,665¥122,834

Lease obligations

7,295

7,898

65,018

Unsecured 0.050% bonds due in March 201910,00010,00089,135

Unsecured 0.090% bonds due in March 2021

10,00010,00089,135

158,071

150,732

1,408,953

Total
Less current portion(43,304)(34,829)(385,987)¥114,767¥115,903$1,022,966

Millions of Yen

Thousands of
U.S. Dollars

2018¥ 43,304$  385,987

2019

45,680407,1702020

42,327377,275

2021

16,246

144,8092022

10,231

91,191

Total

Annual maturities of long-term debt at March 31, 2017, are as follows:Year Ending March 312023 and thereafter
Total

283

2,521

¥158,071$1,408,953

YAMATO HOLDINGS CO., LTD.
Integrated Report 201753

Notes to Consolidated Financial Statements

9. RETIREMENT AND PENSION PLANS
The Group has defined benefit pension plans and defined contribution retirement plans for employees.
The defined benefit pension plans provide, under most circumstances, that employees terminating their employment areentitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, and certain otherfactors. Such retirement benefits are made in the form of a lump-sum severance payment from the Company or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if the termination is
involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages exceeding the standard retirement age.
(1) Defined Benefit Pension Plans
The changes in defined benefit obligation for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2016

2017

Balance at beginning of year

2017

¥153,513¥133,126$1,368,330

Service cost

11,52010,074

102,683

Interest cost

147

1,147

1,310

Actuarial (gain) loss arising during the year(49)

14,943(442)(6,749)(5,777)(60,157)¥158,382¥153,513$1,411,724

Retirement benefits paid
Balance at end of year

The changes in plan assets for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

2017

2016

¥82,016¥80,358$731,048

Expected return on plan assets

2017

820

804

7,310

Actuarial gain (loss) arising during the year

2,486

(1,445)22,160Contributions from the employer

4,313

4,261

38,445Retirement benefits paid

(2,088)(1,962)(18,619)¥87,547¥82,016$780,344

Balance at end of year

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation andplan assets as of March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

Defined benefit obligation of funded plan

¥ 61,358¥ 60,980$ 546,910

Plan assets(87,547)(82,016)(780,344)(26,189)(21,036)(233,434)

Defined benefit obligation of unfunded plan
Net liability arising from defined benefit obligation

2017

97,02492,533864,814¥ 70,835¥ 71,497$ 631,380
Thousands of
U.S. Dollars

Millions of Yen

Liability for employees’ retirement benefits
Asset for employees’ retirement benefits
Net liability arising from defined benefit obligation

2017

2016

¥70,952¥71,5512017$632,428

(117)

(54)

(1,048)¥70,835¥71,497$631,380

The amount of the liability and asset for employees’ retirement benefits that are offset individually by the Company andsubsidiaries are combined.

54

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

The components of net periodic benefit costs for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

¥11,520¥10,074

Interest cost

147

1,147

1,310

Expected return on plan assets

(820)

(804)

(7,310)Recognized actuarial loss

3,966

790

35,350

(24)

5

(208)

¥14,789¥11,212$131,825

Service cost

OthersNet periodic benefit costs

2017$102,683

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined retirement
benefit plans for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

2017

Actuarial gain and (loss)¥6,501¥(15,598)$57,952

Total¥6,501¥(15,598)$57,952

Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect of defined
retirement benefit plans as of March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

2017

Unrecognized actuarial loss¥(8,030)¥(14,531)$(71,573)

Total¥(8,030)¥(14,531)$(71,573)

2017

2016

Plan assets as of March 31, 2017 and 2016, consisted of the following:
General accounts

32%

34%

Debt investments

26

27

Equity investments

23

21

Others

19

18

Total

100%

100%

Assumptions used for the years ended March 31, 2017 and 2016, were set forth as follows:
2017

2016

Discount rate

0.1%

0.1%

Expected rate of return on plan assets

1.0%

1.0%

The expected rate of return on plan assets is determined on the basis of the distribution of plan assets, past performance ofrespective assets that make up investments of plan assets, and market trends.
(2) Defined Contribution Retirement Plans
The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2017 and 2016,
were ¥2,235 million ($19,920 thousand) and ¥2,193 million, respectively.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201755

Notes to Consolidated Financial Statements

10.		 ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

2017

¥5,184¥4,980$46,203Additional provisions associated with the acquisition of property,
plant and equipment

326

150

2,905

Reconciliation associated with passage of time

99

95

886

Reconciliation associated with changes in accounting estimates

15

30

133

Reduction associated with settlement of asset retirement obligations

(46)

(61)

(408)

Others

(43)

(10)

(380)

¥5,535¥5,184$49,339

Balance at beginning of year

Balance at end of year

Changes in accounting estimates were recorded as it became evident that the estimate of the discounted cash flows required
for future asset retirement would change at the beginning of the year. A reconciliation has been prepared for the change, which
resulted in an increase of the asset retirement obligation for the years ended March 31, 2017 and 2016, by ¥15 million ($133 thousand) and ¥30 million, respectively.

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

56

YAMATO HOLDINGS CO., LTD.
Integrated Report 201712.		 INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggregate,
resulted in normal effective statutory tax rates of 30.9% and 33.1% for the years ended March 31, 2017 and 2016.
The tax effects of significant temporary differences, which resulted in deferred tax assets and liabilities at March 31, 2017 and2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

¥ 9,835¥ 9,441$ 87,666

1,925

1,774

17,1582017

Deferred tax assets:
Current:  Accrued expenses  Enterprise tax   Allowance for doubtful accounts

269

184

2,392

   Legal welfare expense

2,377

1,524

21,188   Provision for special wage payments

4,682  Other

1,975   Less valuation allowance(160)

Deferred tax assets—current¥ 20,903¥ 15,138$ 186,315¥ 21,775¥ 22,029$ 194,092

41,7342,215

17,600(1,423)

Non-current:   Liability for employees’ retirement benefits   Loss on valuation of investment securities

1,872

1,881

16,687   Loss on valuation of land

20,76020,759185,037   Loss on impairment of long-lived assets

4,447

4,575

39,635

469

468

4,180

2,278

2,138

20,306   Loss on valuation of telephone subscription rights  Unrealized profit  Other

10,47910,28893,406   Less valuation allowance(32,085)(31,943)(285,988)¥ 29,995¥ 30,195$ 267,355

Current—other

¥

(220)

¥

(231)

$

(1,959)Deferred tax liabilities—current

¥

(220)

¥

(231)

$

(1,959)Deferred tax assets—non-current
Deferred tax liabilities:

Non-current:   Unrealized gain on available-for-sale securities  Other
Deferred tax liabilities—non-current
Deferred tax assets—net¥ (3,731)¥ (3,405)$ (33,255)(2,783)(2,582)(24,806)¥ (6,514)¥ (5,987)$ (58,061)¥ 44,164¥ 39,115$ 393,650

YAMATO HOLDINGS CO., LTD.
Integrated Report 201757

Notes to Consolidated Financial Statements

Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statement of income for the year ended March 31, 2017, with the corresponding figures for 2016 was as follows:
2016

2017

Normal effective statutory tax rate

30.9%

33.1%

Per capita levy of local taxes

8.9

4.3

Valuation allowance

2.9

0.8

Downward revision to deferred tax assets as of end of the period
due to the change in the corporate tax rate

2.7

Other—net

1.7

0.8

Actual effective tax rate

44.4%

41.7%

13.		 LEASES(1) Lessee
The Group leases certain machinery, computer equipment and other assets.
Future rental payments under non-cancelable operating leases at March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2016

2017

2017

Due within one year

¥164

¥153

$1,460Due after one year

304

408

2,715

Total

¥468

¥561

$4,175(2) Lessor
The net investments in lease as of March 31, 2017 and 2016, were summarized as follows:
Thousands of
U.S. Dollars

Millions of Yen

Gross lease receivables

2017

2016

¥48,702¥47,4962017$434,105

Unguaranteed residual values

5,875

5,069

52,371

Unearned interest income(3,800)(3,671)(33,875)¥50,777¥48,894$452,601

Investments in leases—current

Maturities of lease receivables for finance leases that are deemed not to transfer ownership of the leased property to the lessee asof March 31, 2017, are as follows:Year Ending March 31

Thousands of
U.S. Dollars

2018¥16,986$151,405

2019

13,781

122,839

2020

9,656

86,068

2021

5,656

50,418

2022

2,287

20,3842023 and thereafter
Total

58

Millions of Yen

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

336

2,991

¥48,702$434,105

The minimum rental commitments under non-cancelable operating leases at March 31, 2017 and 2016, are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Due within one year

2017

2016

2017

¥3,735¥3,361$33,290

Due after one year

6,212

6,416

55,374

Total¥9,947¥9,777$88,664

14.		 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt including bank loans and bonds, in order to expand its businessbased on its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets. Derivatives areused, not for speculative purposes, but to manage exposure to interest fluctuation risk. Certain consolidated subsidiaries conductleasing or installment sales operations.
(2)	Nature and Extent of Risks Arising from Financial Instruments and the Risk Management for Financial Instruments
Receivables such as notes and accounts receivable and installment sales receivable are exposed to customer credit risk. Therefore,
the Group minimizes customers’ credit risk by monitoring collections and accrued receivables at due dates.
Marketable and investment securities are mainly equity securities of the companies with which the Group has business relationships or capital alliances. Such securities are exposed to the risk of market price fluctuations.
Most payment terms of payables such as notes and accounts payable are less than one year.
Short-term bank loans and long-term bank loans are mainly related to a financial business. Although a portion of such bankloans are exposed to market risks from changes in variable interest rates, those risks are mitigated by using derivatives such as
interest rate swaps. In addition, such interest rate swaps are contracted in accordance with internal policies, which prescribe theauthority over derivative transactions.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as throughfund settlement, bookkeeping, monitoring of the balances outstanding, and managing cash flows.
(3) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If a quoted price is not available, other rational
valuation techniques are used instead. The value could vary depending on the technique used.
Fair values of financial instruments at March 31, 2017 and 2016, were as follows:
Millions of Yen
March 31, 2017

Carrying Amount

Fair Value

Difference

Assets:Cash and cash equivalents¥230,129

Trade notes and accounts receivable

208,131   Allowance for doubtful accounts(134)
207,997

Installment sales receivable¥230,129

207,984¥(13)

45,2305,862

46,142   Allowance for doubtful accounts(764)   Deferred profit on installment sales(6,010)39,368Available-for-sale securities

31,35031,350Shares of affiliates

13,712

13,884

Trade notes and accounts payable

155,736

155,736

Short-term loans

60,97460,99723

Long-term loans

89,90089,897(3)

172

Liabilities:

Derivatives

YAMATO HOLDINGS CO., LTD.
Integrated Report 201759

Notes to Consolidated Financial Statements

Millions of Yen
March 31, 2016

Carrying Amount

Fair Value

Difference

Assets:Cash and cash equivalents¥249,594

Trade notes and accounts receivable

197,382   Allowance for doubtful accounts(125)
197,257

Installment sales receivable

198,154¥  897

37,10742,933

5,826

29,216

29,216

43,648   Allowance for doubtful accounts(646)   Deferred profit on installment sales(5,895)

Available-for-sale securities¥249,594

Liabilities:
Trade notes and accounts payable

148,456

148,456

Short-term loans

55,93456,01884

Long-term loans

90,51590,859344

Derivatives
Thousands of U.S. Dollars
March 31, 2017

Carrying Amount

Fair Value

Cash and cash equivalents$2,051,241$2,051,241

Trade notes and accounts receivable

1,855,165

Difference

Assets:   Allowance for doubtful accounts(1,193)
1,853,972

Installment sales receivable

1,853,851

$

(121)

411,280   Allowance for doubtful accounts(6,807)   Deferred profit on installment sales(53,571)
350,902403,153

Available-for-sale securities

279,435

279,435

Shares of affiliates

122,215

123,756

52,251
1,541

Liabilities:
Trade notes and accounts payable

1,388,147

1,388,147

Short-term loans

543,489543,690

201

Long-term loans

801,319

801,291(28)

Derivatives

Cash and cash equivalents

The carrying values of cash and cash equivalents approximate fair value because of their short maturities.
Trade notes and accounts receivable

The fair values of receivables are measured at the amount to be received at maturity discounted at the Group’s assumed corporate
discount rate. A portion of these receivables is determined by discounting the future cash flows related to the receivables at therate of government bonds.
Installment sales receivable

Allowances for doubtful accounts and deferred profit on installment sales are deducted from the fair values of installment
sales receivable, which are determined by discounting the future cash flows related to the installment sales receivable at themarket interest rate.

60

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017Marketable and investment securities

The fair values of marketable and investment securities are measured at the quoted market price of the stock exchange for theequity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. Fair value information for marketable and investment securities by classification is included in Note 6.
Trade notes and accounts payable

The fair values of payables, all of which are substantially paid within one year, are measured at the amount to be paid.
Short-term loans and long-term loans

The fair values of short-term bank loans and long-term loans are determined by discounting the future cash flows related to thedebt at the Group’s assumed corporate borrowing rate.
The current portion of long-term bank loans is included in short-term loans in the above table in addition to short-term bankloans on the consolidated balance sheet. Lease payments are not included in long-term loans in the above table.
Derivatives

Fair value information for derivatives is included in Note 15.
(4) Financial Instruments Whose Fair Value Cannot Be Reliably Determined
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

2017

Shares of affiliates¥5,862¥   74$52,250

Other

3,359

2,208

29,939(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen
March 31, 2017

Due in One Yearor Less

Due after One Yearthrough Five Years

Due after
Five Years

Cash and cash equivalents¥230,129

Trade notes and accounts receivable

191,192¥16,725

Installment sales receivable

22,982

22,412748¥444,303¥39,137

¥962

¥201

Total

¥214

March 31, 2016

Cash and cash equivalents¥249,594

Trade notes and accounts receivable

181,984¥15,197

Installment sales receivable

21,43821,631579¥453,016¥36,828

¥780

Total

Thousands of U.S. Dollars
March 31, 2017

Due in One Yearor Less

Cash and cash equivalents$2,051,241

Trade notes and accounts receivable

1,704,177$149,084

204,848

199,761

6,671$3,960,266$348,845$8,575

Installment sales receivable
Total

Due after One Yearthrough Five Years

Due after
Five Years$1,904

YAMATO HOLDINGS CO., LTD.
Integrated Report 201761

Notes to Consolidated Financial Statements(6) Maturity Analysis for Long-term loans
Year Ending March 31

2018

Millions of Yen

Thousands of
U.S. Dollars¥ 40,876$   364,346

2019

33,600299,492

2020

40,800363,669

2021

5,500

49,0242022

10,00089,134

Total¥130,776$1,165,665

Please see Note 8 for annual maturities of long-term loans.

15.		 DERIVATIVESThe Company and certain consolidated subsidiaries use derivative financial instruments to manage their exposure to fluctuationsin interest rates. Interest rate swaps are utilized by the Company and the consolidated subsidiaries to reduce interest rate risk. The
Group has a policy not to enter into derivatives for trading or speculative purposes.
The interest rate swaps, which qualify for hedge accounting and meet specific matching criteria, are not remeasured at market
value but the differential paid or received under the swap agreements is recognized and included in interest expense or income.
Derivative Transactions to Which Hedge Accounting Is Applied
Millions of Yen
Contract AmountContract AmountDue after One Year

Long-term bank loans¥8,220¥—*Long-term bank loans¥26,376¥8,220*March 31, 2017

Hedged Item

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

Fair Value

March 31, 2016

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

Thousands of U.S. Dollars
March 31, 2017

Hedged Item

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

Long-term bank loans

Contract AmountContract AmountDue after One Year

$73,269$—

Fair Value** The fair value of interest rate swaps is included in that of hedged items (long-term bank loans due within one year is considered as short-term loans). Please see Note 14.

62

YAMATO HOLDINGS CO., LTD.
Integrated Report 201716.		 OTHER COMPREHENSIVE INCOME
The components of other comprehensive income (loss) for the years ended March 31, 2017 and 2016, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2017

2016

2017

Unrealized gain (loss) on available-for-sale securities:
Adjustments arising during the year

¥ 2,194¥ (5,252)$ 19,557

Reclassification adjustments to profit or loss

(599)

(53)

(5,341)

Amount before income tax effect1,595(5,305)

14,216

Income tax effect

(326)

1,329

(2,905)¥ 1,269¥ (3,976)$ 11,311¥(1,174)¥(419)$(10,468)

Total
Foreign currency translation adjustments:
Adjustments arising during the year
Remeasurements of defined employees’ retirement benefit plans:
Adjustments arising during the year

¥ 2,535¥(16,388)$ 22,602

Reclassification adjustments to profit or loss

3,966

790

35,350

Amount before income tax effect

6,501(15,598)

57,952

Income tax effect(2,045)

4,811(18,230)

Total¥ 4,456¥(10,787)$ 39,722¥¥$

Share of other comprehensive income of entities accounted for using equity method:
Adjustments arising during the year
Total other comprehensive income (loss)

1¥ 4,552—¥(15,182)7$ 40,572

17.		 NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share (“EPS”) for the years ended March 31, 2017 and2016, was as follows:
Millions of Yen

Year Ended March 31, 2017

Basic EPS—Net income available to common shareholders

Thousands ofSharesNet Income
Attributable to
Weighted-average
Owners of the Parent
SharesYen

U.S. Dollars

EPS¥18,054

397,930¥45.37¥39,425

408,743¥96.45$0.40

Year Ended March 31, 2016

Basic EPS—Net income available to common shareholders
Adjustment in net income—Administrative fee (net of tax)

15

Effect of dilutive securities—Convertible bonds
Diluted EPS—Net income for computation

3,644¥39,440

412,387¥95.64

YAMATO HOLDINGS CO., LTD.
Integrated Report 201763

Notes to Consolidated Financial Statements

18.		 SEGMENT INFORMATION(1) Description of Reportable Segments
The Group identifies operating segments as components of entity for which discrete financial information is available and whose
operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to be allocated tothe segments and assess their performance.
The Company, as a pure holding company, forms six reportable segments classified according to business content and manages them based on these reportable segments. Therefore, the Group has the following six reporting segments: “Delivery,” “BIZLogistics,” “Home Convenience,” “e-Business,” “Financial,” and “Autoworks” based on the above policy.
The Group defines the reporting segments as follows:
Delivery:	Small-parcel delivery services such as TA-Q-BIN (door-to-door parcel delivery) andKuroneko DM-Bin (posting service)
BIZ-Logistics:
Intercompany logistics services, aimed at the B2B supply-chain management market
Home Convenience:	Lifestyle support services intimately connected with the needs of local markets, such as moving and­household effects delivery services
e-Business:	Information services targeted at the business market, including ASP services and the development of­information systems
Financial:
Financial services targeted at business customers and consumers, such as settlement and collection
Autoworks:
Vehicle maintenance services and fuel supply targeted at transport companies(2)	Methods of Measurement for the Amounts of Segment Revenues, Segment Income, Segment Assets, and Other
Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant
Accounting Policies.”

64

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

(3) Information about Segment Revenues, Segment Income, Segment Assets, and Other Items
Millions of Yen

2017Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Total segment revenues¥1,151,028
66,561¥1,217,589¥108,644
13,357¥122,001¥49,164
14,594¥63,758¥45,639
34,672¥80,311¥ 77,985
3,049¥ 81,034¥24,61428,186¥52,800¥ 9,778
60,875¥70,653¥1,466,852
221,294¥1,688,146¥—(221,294)¥(221,294)¥1,466,852

Segment income

¥

5,638
638,180¥  4,072
69,957¥ 1,077
22,342¥ 9,368
47,879¥  8,244
252,745¥ 3,274
25,798¥35,477
11,941¥ 67,150
1,068,842¥ (32,265)
45,830¥   34,885
1,114,672

32,417

2,575

542

4,368

4,402

735

410

45,449665

46,114

305

5,057

5,362

13,712

19,074

31,611

4,798

48,796198

48,994

Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets¥1,466,852

Other:
Depreciation and amortization
Investment in entities  accounted for using
equity method Increase of tangible andintangible fixed assets

708

3,445

7,379

264

591

Millions of Yen

2016
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated¥106,823
12,553¥119,376¥48,981
15,247¥64,228¥43,358
30,367¥73,725¥ 72,446
3,343¥ 75,789¥24,459
27,539¥51,998¥ 8,470
49,860¥58,330¥1,416,413
204,990¥1,621,403¥

Total segment revenues¥1,111,876
66,081¥1,177,957—(204,990)¥(204,990)¥1,416,413

Segment income

¥

¥

4,906
60,471¥ 1,147
21,437¥ 9,00943,620¥  8,703
242,963¥ 3,373
24,264¥26,515
11,268¥ 91,829
1,053,923¥ (23,289)
35,514¥   68,540
1,089,437

33,961

2,161

532

4,241

4,066

783

296

46,040699

46,73934,977

2,840

716

6,414

7,466

696

692

53,801

144

53,945

Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets

38,176649,900¥1,416,413

Other:
Depreciation and amortization Increase of tangible andintangible fixed assets

Thousands of U.S. Dollars

2017
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated$  968,393
119,061$1,087,454$438,220130,083$568,303$406,803
309,045$715,848$  695,116
27,179$  722,295$219,394
251,234$470,628$ 87,153
542,609$629,762$13,074,713
1,972,495$15,047,208$

Total segment revenues$10,259,634
593,284$10,852,918

Segment income$

50,2555,688,381$   36,298
623,558$  9,595
199,144$ 83,504
426,770$   73,482
2,252,832$ 29,178
229,950$316,224
106,436$$   (287,587) $ 310,949
408,505
9,935,576

4,829

38,934

39,239

6,554

3,655

Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets

598,536
9,527,071— $13,074,713(1,972,495)$(1,972,495) $13,074,713

Other:
Depreciation and amortization

288,946

22,950Investment in entities  accounted for using
equity method

2,722

45,074

Increase of tangible and   intangible fixed assets

281,759

42,7696,312

30,70865,775

2,348

5,272

405,107

5,930

411,037

47,796122,215

170,011434,9431,761

436,704

Notes:	“Other” includes JITBOX charter services and shared services.
	Segment revenues and segment income of “Other” include dividends for the years ended March 31, 2017 and 2016, of ¥34,410 million ($306,709 thousand) and ¥24,890 million, respectively, which the Company received from its subsidiaries as a pure holding company.
	Reconciliations are as follows:		 (1)	Reconciliations of segment income for the years ended March 31, 2017 and 2016, of ¥32,265 million ($287,587 thousand) and ¥23,289 million, respectively, are intersegment eliminations and others.
		 (2)	Reconciliations of segment assets at March 31, 2017 and 2016, of ¥45,830 million ($408,505 thousand) and ¥35,514 million, respectively, include intersegment eliminations of assets and liabilities of ¥150,292 million ($1,339,619 thousand) and ¥164,798 million, and corporate assets which are not allocated to each reporting segment of¥196,122 million ($1,748,124 thousand) and ¥200,312 million, respectively.
		 (3)	Reconciliations of investment in entities accounted for using equity method at March 31, 2017, of ¥13,712 million ($122,215 thousand) are investments which are not­allocated to each reporting segment.
		 (4)	Reconciliations of increases of tangible and intangible fixed assets at March 31, 2017 and 2016, of ¥198 million ($1,761 thousand) and ¥144 million, respectively, include
the Company’s capital investment.
Segment income is reconciled with operating income in the consolidated statement of income.
	As stated in Note 3, “Accounting Changes,” the Company has applied the “Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016” from the fiscal
year ended March 31, 2017, and changed the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016, from the decliningbalance method to the straight-line method. As a result, segment income of the Delivery Business increased by ¥169 million ($1,507 thousand) for the fiscal year ended March
31, 2017. The effect of this change on other segments is immaterial.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201765

Notes to Consolidated Financial Statements[Related Information about Reporting Segments](1) Information about products and services
Operating revenues from customers for the years ended March 31, 2017 and 2016, were as follows:
Millions of Yen
2016

2017
TA-Q-BIN¥981,002

Kuroneko DM-Bin¥81,277

Other¥404,573

Total

TA-Q-BIN¥939,470¥1,466,852

Kuroneko DM-Bin¥82,701

Other¥394,242

Total¥1,416,413

Thousands of U.S. Dollars
2017
TA-Q-BIN$8,744,115

Kuroneko DM-Bin$724,457

Other

Total

$3,606,141 $13,074,713(2) Information about geographical areas
Operating revenues for the years ended March 31, 2017 and 2016, were as follows:
Millions of Yen
2016

2017
Japan

¥1,441,673

North America

Other¥9,789¥15,390

Total

Japan

¥1,466,852¥1,390,082

North America

Other¥11,481¥14,850

Total¥1,416,413

Thousands of U.S. Dollars
2017
Japan

$12,850,278

North America

Other$87,258

Total$137,177 $13,074,713

Property, plant and equipment at March 31, 2017 and 2016, were as follows:
Millions of Yen
2016

2017
Japan

¥403,528

North America

Other

¥365

¥1,177

Total¥405,070

Thousands of U.S. Dollars
2017
Japan

$3,596,827

66

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017

North America$3,252

Other$10,497

Total$3,610,576

Japan¥404,092

North America

¥432

Other

¥1,118

Total¥405,642

(3) Information about loss on impairment of long-lived assets by reporting segments
Loss on impairment of long-lived assets by reporting segments for the years ended March 31, 2017 and 2016, were as follows:
Millions of Yen
2017Delivery

BIZ-Logistics

Home
Convenience

¥765

¥322

¥178

Loss on impairmentof long-lived assets

e-Business

Financial

Autoworks

Other

¥19

Eliminations or
Corporate
Consolidated

Total¥1,284¥1,284

Millions of Yen

2016
Delivery

BIZ-Logistics

¥817

¥192

Loss on impairmentof long-lived assets

Home
Convenience

e-Business

Financial

Autoworks

¥10

¥136

Other

Eliminations or
Corporate
Consolidated

Total¥1,155¥1,155

Thousands of U.S. Dollars
2017

Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

Home
Convenience$6,818$2,873$1,588e-Business

Financial

Autoworks

$2

$166

Other

Eliminations or
Corporate
Consolidated

Total$11,447$11,447

19.		 SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2017, was approved at the Company’s Board of Directors meeting
held on May 17, 2017:

Year-end cash dividends, ¥14.00 ($0.12) per share

Millions of Yen

Thousands of
U.S. Dollars¥5,520$49,201

YAMATO HOLDINGS CO., LTD.
Integrated Report 201767

Independent Auditor’s Report

To the Board of Directors of
Yamato Holdings Co., Ltd.:We have audited the accompanying consolidated balance sheet of Yamato Holdings Co., Ltd. and its consolidated subsidiaries as of March 31,
2017, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended,
and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.

Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable thepreparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial
position of Yamato Holdings Co., Ltd. and its consolidated subsidiaries as of March 31, 2017, and the consolidated results of their operations
and their cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made in accordance with the basis stated in Note 1 to the consolidated financial statements. Such U.S. dollar amounts are presented
solely for the convenience of readers outside Japan.

June 21, 2017

68

YAMATO HOLDINGS CO., LTD.
Integrated Report 2017