FINANCIAL SECTION

Ten-Year Summary and Business Highlights

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/3

RESULTS OF OPERATIONS:
Operating revenues¥1,200,834 ¥1,236,520 ¥1,260,833 ¥1,282,374 ¥1,374,610 ¥1,396,708
966,480

995,651

1,014,564

1,028,219

1,099,400

1,101,439

1,111,867

Non-delivery

234,354240,869

246,269

254,155

275,210295,269

304,546

Operating costs

1,110,971

1,143,006

1,163,777

1,181,834

1,274,471

1,290,715

1,306,200

Selling, general and administrative expenses

28,47429,20030,40534,33737,04337,046

41,673Operating profit

61,38964,314

66,651

66,20363,096

68,947

68,540

Profit before income taxes

60,434

61,83645,81764,28465,882

69,15868,079

Income taxes

28,09628,491

26,05929,56331,00331,55528,415

Profit attributable to owners of parent

32,282

33,20819,78735,144

34,77637,53339,425PER SHARE OF COMMON STOCK:
Basic earnings
Diluted earnings
Cash dividends
Net assets per share
Stock price (closing), end of year¥    71.84 ¥    73.42 ¥    46.00 ¥    81.85 ¥    82.22 ¥    90.41
71.16
73.30
44.87
79.84
80.18
88.26
22.00
22.00
22.00
23.00
24.00
25.00
1,130.33
1,173.60
1,197.26
1,261.35
1,316.12
1,368.66
1,314
1,290
1,279
1,740
2,224
2,772

¥    96.45
95.64
28.00
1,349.56
2,247

FINANCIAL POSITION:
Working capital
Total shareholders’ equity
Total assets
Capital expenditures
Depreciation and amortization
Net cash provided by operating activities¥  165,890 ¥  185,922 ¥  182,111 ¥  186,868 ¥  179,999 ¥  209,172
512,910515,602514,996
534,451
551,379
565,521878,641
899,363919,295
950,153 1,032,134 1,082,531
39,70052,472
48,61548,052
79,53152,022
39,88339,58338,68237,93642,26646,05877,06487,89971,84373,95080,075
92,620¥  235,884
537,821
1,089,437
53,94546,73949,715

KEY RATIOS:
Operating profit margin (%)

5.11

5.20

5.29

5.16

4.59

4.94

4.84

Net margin (%)

2.69

2.69

1.57

2.74

2.53

2.69

2.78

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
153.41
27.0
1.7

3.55
6.75
158.5952.24
1.32
173.45
30.7
2.0

3.63
7.15
167.7649.37
1.30
125.3323.3
1.7

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

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

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

2,262
65

2,312
64

2,187
62

2,112
61

2,084
61

1,901
61

1,536
57

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 ¥110.99 to U.S.$1.
Note: On March 31, 2015, we ceased accepting items for Kuroneko Mail and from April 1 launched Kuroneko DM-Bin.

66¥1,416,413

Delivery

YAMATO HOLDINGS CO., LTD.
Integrated Report 20192017/3

2018/3

Millions of Yen
2019/3Thousands of
U.S. Dollars

Analysis of Operating Revenues

2019/3(¥ billion)

1,538.8

FY18/3¥1,466,852 ¥1,538,813 ¥1,625,315$14,643,799

1,151,028

1,201,770

1,297,223

11,687,744

315,824

337,043

328,092

2,956,055

1,385,492

1,452,485

1,513,988

13,640,762

46,47550,642

52,981

477,354

34,88535,68658,346525,683

33,03833,12352,258

470,836

14,673

14,43526,308237,033

18,054

18,232

25,682

231,393

Yen

+95.4

Delivery
BIZ-Logistics
Home Convenience (11.4)
e-Business (0.7)
Financial (2.9)

Autoworks +1.3

+2.5

Other

U.S. Dollars

1,625.3

FY19/3¥    45.37 ¥    46.24 ¥    65.14
—
—
—
27.00
27.00
28.00
1,367.51
1,395.74
1,435.15
2,332.5
2,668.5
2,859.0
Millions of Yen¥  214,661 ¥  164,600 ¥  139,835
539,179
550,308565,841
1,114,672
1,114,870
1,123,660
48,99454,482
79,83946,114
46,42351,34773,32551,728118,094

$

0.59
—
0.25
12.93
—
Thousands of
U.S. Dollars$ 1,259,888
5,098,127
10,123,972
719,331462,624
1,064,004

YoY +86.5

Analysis of Operating Profit(¥ billion)

35.6

FY18/3+86.5

Revenue

2.32

3.59

1.23

1.18

1.58

1.64
3.35
157.73
48.37
1.33
81.45
51.4
1.7

1.64
3.35
141.6749.36
1.38
131.94
57.7
1.9

2.29
4.60
134.0750.36
1.45
212.2943.9
2.0

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

213,096
93,534
119,562
1,836
597

225,125
97,587
127,538
1,803
664

1,542
55

1,464
56

1,211
60

+34.9

Personnel expenses
Subcontracting
expenses+2.4

Vehicleexpenses

2.38

+2.2

+15.1

Other
Consolidation
journal entries

+3.3

+7.9
58.3

FY19/3

YoY +22.6

Quarterly YoY Growth Rates of TA-Q-BIN Delivery Volume
and Unit Price
(%)
20
15
10
5
0
(5)
(10)

1Q

2Q

3Q

4Q

1Q

2017/3TA-Q-BIN Delivery Volume Growth Rate
TA-Q-BIN Unit Price Growth Rate

2Q

3Q

2018/3

4Q

1Q

2Q

3Q

4Q

2019/3

Delivery Volume:YoY (1.9)%
Unit Price:
YoY +5.5%

YAMATO HOLDINGS CO., LTD.
Integrated Report 201967

FINANCIAL SECTION

Consolidated Balance Sheet
March 31, 2019

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

ASSETS

2019

2018

2019

¥ 195,955¥ 204,422$ 1,765,519  Trade220,159

224,099

1,983,596   Installment (Note 4)

44,802

46,693

403,658   Lease (Note 13)

54,53852,642

491,376   Allowance for doubtful accounts(1,475)(1,365)(13,294)

3,248

2,816

29,262CURRENT ASSETS:
Cash and cash equivalents (Notes 2.e and 14)
Notes and accounts receivable (Note 14):

Inventories (Note 5)
Prepaid expenses and other current assets

33,03230,328297,614    Total current assets

550,259

559,635

4,957,731

PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
Vehicles175,996352,142
208,031

174,960
336,986
197,587

1,585,692
3,172,735
1,874,324

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

133,238
31,538
8,391

128,454
15,67016,201

1,200,448
284,149
75,603

Others26,311

28,490237,060    Total
Accumulated depreciation     Net property, plant and equipment

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 6 and 14) Investments in and advances to unconsolidated subsidiaries and affiliates,
net of valuation allowance of ¥127 million in 2018 (Note 14)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 12)
Other assets (Notes 2.k and 9)     Total investments and other assets
TOTAL
See notes to consolidated financial statements.

68

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019935,647

898,3488,430,011(506,729)(493,290)(4,565,534)

428,918

405,058

3,864,477

36,22936,232

326,416

20,5301,294
17,313
18,34344,38625,293
1,167
17,26017,39147,023

184,971
11,662
155,985
165,266
399,907

6,388

5,811

57,557

144,483

150,177

1,301,764¥1,123,660¥1,114,870$10,123,972

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

LIABILITIES AND EQUITY

2018

2019

2019

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

20,000¥33,352$

180,196

43,59245,840392,751  Trade158,938

155,324

1,432,003  Other

25,59819,992

230,635

Income taxes payable

23,747

11,020213,959

Accrued expenses

81,53075,100734,569

Notes and accounts payable (Note 14):

Deferred profit on installment sales (Notes 4 and 14)

5,342

5,900

48,126

Other current liabilities (Note 10)

51,67748,507465,604

410,424

395,035

3,697,843

Long-term debt (Notes 8 and 14)

49,642

73,849447,266

Liability for employees’ retirement benefits (Notes 2.k and 9)74,50875,495

671,305

Deferred tax liabilities (Note 12)

4,181

4,089

37,669Other long-term liabilities (Note 10)

11,516

8,815

103,757

139,847

162,248

1,259,997

Common stock—authorized, 1,787,541,000 shares in 2019 and 2018;
issued, 411,339,992 shares in 2019 and 2018

127,235

127,235

1,146,363

Capital surplus

36,81336,813331,680

Retained earnings

431,498

416,855

3,887,715

Treasury stock—at cost, 1
 7,065,526 shares in 2019 and
17,064,197 shares in 2018

(39,086)(39,081)(352,155)

12,975

12,959116,905    Total current liabilities
LONG-TERM LIABILITIES:    Total long-term liabilities
COMMITMENTS LIABILITIES (Note 13)
EQUITY (Notes 11 and 18):

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

(515)

1,146

(4,641)(3,079)(5,619)(27,740)

565,841

550,308

5,098,127

7,548

7,279

68,005573,389

557,587

5,166,132¥1,123,660¥1,114,870$10,123,972

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

69

FINANCIAL SECTION

Consolidated Statement of Income
Year Ended March 31, 2019

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

OPERATING REVENUES

2019

2018

2019

¥1,625,315¥1,538,813$14,643,799

1,513,988

1,452,485

13,640,762

52,98150,642

477,354

1,566,969

1,503,127

14,118,116

58,34635,686525,683

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

1,036

981

9,336

Interest expense

(276)

(272)

(2,483)

Loss on sales and disposal of property, plant and equipment—net(300)(1,042)(2,704)(18,808)

Loss on impairment of long-lived assets (Note 7)(2,087)(3,241)Gain on sales of marketable and investment securities (Note 6)

37

1,639

334

Loss on valuation of investment securities (Note 6)

(39)

(1)

(352)

Loss on valuation of investment in unconsolidated subsidiaries and affiliates(1,357)(55)(12,228)

Share of loss of entities accounted for using equity method(4,873)(1,355)(43,902)

Provision of allowance for investment loss of unconsolidated subsidiaries(127)

Provision of allowance for doubtful accounts
Compensation for delay damages

(136)
1,776

Other—net

16,001

(5)

1,046

(41)

  Other expenses—net(6,088)(2,563)(54,847)

PROFIT BEFORE INCOME TAXES

52,25833,123

470,836

Current

24,651

14,622

222,106

Deferred

1,657

(187)

14,927   Total income taxes

26,30814,435

237,033

PROFIT

25,95018,688233,803

INCOME TAXES (Note 12):PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT ATTRIBUTABLE TO OWNERS OF PARENT

268

456

2,410

¥   25,682¥   18,232$   231,393
U.S. Dollars(Note 1)

Yen
2019

2018

Basic earnings¥65.14¥46.24$0.59

Cash dividends applicable to the year

28.00

27.00

0.25

2019

PER SHARE OF COMMON STOCK (Notes 2.q and 16):

See notes to consolidated financial statements.

70

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

Consolidated Statement of Comprehensive Income
Year Ended March 31, 2019

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

PROFIT20192018¥25,950¥18,6882019$233,803

OTHER COMPREHENSIVE INCOME (Note 15):
Unrealized (loss) gain on available-for-sale securities

(116)

2,514

(1,044)Foreign currency translation adjustments(1,661)

1,569(14,968)

Remeasurements of defined employees’ retirement benefit plans

2,541

1

22,900Share of other comprehensive income of entities accounted for using equity method   Total other comprehensive income
COMPREHENSIVE INCOME

274

2,466

1,038

4,084

9,354

¥26,988¥22,772$243,157¥26,577¥21,780$239,458

411

992

3,699

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

YAMATO HOLDINGS CO., LTD.
Integrated Report 201971

FINANCIAL SECTION

Consolidated Statement of Changes in Equity
Year Ended March 31, 2019

Thousands

Millions of Yen
Accumulated Other Comprehensive Income

BALANCE,APRIL 1, 2017

Outstanding
Number of
Shares ofCommon Stock

Common Stock394,278¥127,235

Capital Surplus Retained Earnings Treasury Stock¥36,813¥409,271¥(39,078)

Remeasurements
Unrealizedof Defined
Foreign Currency
Employees’Gain onAvailable-for-Sale
Translation
Retirement Benefit
Securities
Adjustments
Plans¥10,975¥  (423)¥(5,614)

Non-controlling
Interests

Total¥539,179¥6,380Total Equity¥545,559 Profit attributable toowners of parent

18,232

18,232

18,232 Cash dividends,¥27 per share(10,646)(10,646)(10,646)

(2)

(2)

(2)

(4)

(4)

 Adjustment of retained
earnings for changes
in the scope of equity
method Purchase oftreasury stock

(2)

(4)

 Disposal oftreasury stock

1

Net change in the year
BALANCE,MARCH 31, 2018394,276

127,235

36,813416,855(39,081)

1

1

1,984

1,569

(5)

3,548

899

4,447

12,9591,146(5,619)550,308

7,279

557,587 Profit attributable toowners of parent

25,682

25,682

25,682 Cash dividends,¥28 per share(11,039)(11,039)(11,039)(5)(5) Purchase oftreasury stock

(2)

(5)

 Disposal oftreasury stock
Net change in the year
BALANCE,MARCH 31, 2019394,274¥127,235¥36,813¥431,498¥(39,086)

16(1,661)

2,540

895

269

1,164

¥12,975¥  (515)¥(3,079)¥565,841¥7,548¥573,389

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

Common Stock

BALANCE,MARCH 31, 2018

$1,146,363

Capital Surplus Retained Earnings Treasury Stock$331,680$3,755,788$(352,118)$116,755$ 10,328

Non-controlling
Interests

Total$(50,624) $4,958,172$65,587

Total Equity$5,023,759 Profit attributable toowners of parent

231,393

231,393

231,393 
Cash dividends,$0.25 per share(99,466)(99,466)(99,466)

(38)

(38)

 
Purchase oftreasury stock

(38)

 
Disposal oftreasury stock1 
Net change in the year
BALANCE,MARCH 31, 2019

$1,146,363

See notes to consolidated financial statements.

72

Remeasurements
Unrealizedof Defined
Foreign Currency
Employees’Gain onAvailable-for-Sale
Translation
Retirement Benefit
Securities
Adjustments
Plans

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

$331,680$3,887,715$(352,155)

1
150(14,969)$116,905$ (4,641)

22,884

1

8,065

2,418

10,483$(27,740) $5,098,127$68,005$5,166,132

Consolidated Statement of Cash Flows
Year Ended March 31, 2019

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2018

2019

2019

OPERATING ACTIVITIES:Profit before income taxes¥ 52,258¥ 33,123$ 470,836  Income taxes—paid(13,745)(12,866)(123,838)   Depreciation and amortization

51,35946,435

462,735

300

1,042

2,704

2,087

3,241

18,808   Gain on sales of marketable and investment securities(37)(1,639)(334)   Loss on valuation of investment securities

39

1

352

   Loss on valuation of investment in unconsolidated subsidiaries and affiliates

1,357

55

12,228   Share of loss of entities accounted for using equity method

4,873

1,355

43,902   Compensation for delay damages received

1,776

Adjustments for:   Loss on sales and disposal of property, plant and equipment—net   Loss on impairment of long-lived assets

16,001   Changes in assets and liabilities:    Decrease (increase) in notes and accounts receivable

3,223(18,774)    (Increase) decrease in inventories

(296)

227

(2,665)    Increase (decrease) in notes and accounts payable

3,773

(478)

33,993    Decrease in provision for special wage payments

29,038(15,129)    Increase in liability for employees’ retirement benefits

1,936

2,232

  Other—net

9,191

12,90382,804    Total adjustments

65,836

18,605593,168     Net cash provided by operating activities

118,094

51,7281,064,004

17,440INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Proceeds from sales of marketable and investment securities

4,233

6,632

38,140(48,058)(36,671)(432,996)

72

2,672

650

(290)

(790)

(2,612)

Increase in investments in and advances to unconsolidated subsidiaries and affiliates(1,770)(4,137)(15,949)

Collection of loans

1,178

997

10,613

Payment of loans(1,322)(1,197)(11,908)

Purchases of marketable and investment securities

Other     Net cash used in investing activities(8,915)(8,680)(80,328)(54,872)(41,174)(494,390)(16,165)

10,683(145,647)

FINANCING ACTIVITIES:(Repayments of) proceeds from short-term debt—net
Proceeds from long-term debt

4,000

Repayments of long-term debt

(43,600)(40,876)(392,828)

Dividends paid

(11,178)(10,733)(100,713)

Purchase of treasury stock—net     Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS

(4)

(4)

(37)

(70,947)(36,930)(639,225)

(487)

313

(4,385)(8,212)(26,063)(73,996)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

202,863

228,926

1,827,763

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.e)

¥194,651¥202,863$1,753,767

Newly recorded assets related to finance lease transactions¥ 18,131¥$ 163,356

Newly recorded liabilities related to finance lease transactions

19,768NET DECREASE IN CASH AND CASH EQUIVALENTS

NON-CASH INVESTING AND FINANCING ACTIVITIES:—

178,109* The amounts of newly recorded assets and liabilities related to finance lease transactions for the fiscal year ended March 31, 2018, are omitted due to immateriality.
See notes to consolidated financial statements.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201973

FINANCIAL SECTION

Notes to Consolidated Financial Statements
Year Ended March 31, 2019

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 applicationand disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated 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 2018 consolidated
financial statements to conform them to the classifications and presentations used in 2019.
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 are included solely for the convenience of readers outside Japan and have been made at the rate of¥110.99 to $1, the approximate rate of exchange at March 31, 2019. 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, 2019, include the accounts of the Company andits 39 significant (40 in 2018) subsidiaries (together, the “Group”).
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise 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.
Yamato Multi-Maintenance Solutions Co., Ltd. has been dissolved upon absorption-type merger with Yamato Logistics
Co., Ltd. as surviving company, and is excluded from the scope of consolidation from the fiscal year ended March 31, 2019.
The unconsolidated subsidiaries, whose combined assets, net sales, profit and retained earnings in the aggregate are
not significant to the consolidated financial statements, have not been consolidated with the Company.
There were 17 (16 in 2018) affiliates accounted for by the equity method.
Effective from the fiscal year ended March 31, 2019, GDEX PROPERTIES SDN. BHD. is included in the scope ofthe equity method due to GD EXPRESS CARRIER BHD., an affiliate accounted for using equity method, newly acquiring its shares.
Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated atcost, less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If the equity 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 undersimilar circumstances should in principle be unified for the preparation of the consolidated financial statements. However,financial statements prepared by foreign subsidiaries 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 profit is accounted
for in accordance with Japanese GAAP, unless they are not material: (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 andequipment and investment properties and incorporation of the cost model accounting.

74

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Integrated Report 2019

c. Unification of Accounting Policies Applied to Foreign Affiliated Companies for the Equity Method—ASBJ
Statement No. 16, “Accounting Standard for Equity Method of Accounting for Investments,” requires adjustments to bemade to conform the affiliate’s accounting policies for similar transactions and events under similar circumstances to thoseof the parent company when the affiliate’s financial statements are used in applying the equity method, unless it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign affiliated companies in accordance with either International Financial Reporting Standards or generally accepted accounting principles in the UnitedStates of America tentatively may be used in applying the equity method if the following items are adjusted so that profit isaccounted for in accordance with Japanese GAAP, unless they are not material: (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, plantand equipment and investment properties and incorporation of the cost model accounting.
d. 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.
e. Cash Equivalents—Cash equivalents in the consolidated statement of cash flows are short-term investments that arereadily 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 andcash equivalents in the accompanying consolidated statement of cash flows was as follows:
Thousands of
U.S. Dollars

Millions of Yen
2019

Cash and cash equivalents presented in the consolidated balance sheet
Time deposits due beyond three months
Cash and cash equivalents presented in the consolidated statement of cash flows

2018

2019

¥195,955¥204,422(1,304)(1,559)(11,752)¥194,651¥202,863$1,753,767$1,765,519

f. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.
g. Marketable and Investment Securities—Marketable and investment securities are classified and accounted for,depending on management’s intent, as follows: (1) trading securities, which are held for the purpose of earning capitalgains in near term, are reported at fair value, and the related unrealized gains and losses are included in earnings; (2) heldto-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-sale securities, which are not classified as either of the aforementioned securities, are reported at fairvalue, 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, 2019 and 2018.
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 toincome.
h. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant andequipment excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantiallyby the declining-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 straight-line 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
VehiclesMachinery 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.
YAMATO HOLDINGS CO., LTD.
Integrated Report 201975

FINANCIAL SECTION

Notes to Consolidated Financial Statements

i. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate 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 toresult from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying 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.
j. 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.
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 alongwith these 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
are amortized on a straight-line basis over a period within the average remaining service period of the eligible employees(mainly five years) on and after 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,
and funded 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 isassociated 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 be recognized when a reasonable estimate of the asset retirement obligation can be made. Upon initialrecognition 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 the remaining 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
the balance sheet.
For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized aslease receivables, 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 income tax rates to the temporary differences.
On February 16, 2018, the ASBJ issued ASBJ Statement No. 28, “Partial Amendments to Accounting Standard for Tax
Effect Accounting,” which requires deferred tax assets and deferred tax liabilities to be classified as investments and otherassets and long-term liabilities, respectively. Deferred tax assets were previously classified as current assets and investments and other assets, and deferred tax liabilities were previously classified as current liabilities and long-term liabilities
under the previous accounting standard. The revised accounting standard is effective for annual periods beginning on orafter April 1, 2018. The Company retrospectively applied the revised accounting standard effective April 1, 2018.
As a result, in the consolidated balance sheet for the fiscal year ended March 31, 2018, deferred tax assets undercurrent assets decreased by ¥19,246 million and deferred tax assets under investments and other assets increased by

76

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019¥18,682 million. In addition, deferred tax liabilities included in other current liabilities and deferred tax liabilities under­long-term liabilities decreased by ¥2 million and ¥562 million, respectively.
Note that total assets decreased by ¥564 million, as deferred tax assets and liabilities of the same taxable entity wereoffset.
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. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate. Differences arising from such translation are shown as “Foreign currency translation adjustments” under accumulated other comprehensive 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.
q. Per Share Information—Basic earnings per share is computed by dividing profit attributable to common shareholders
by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits.
Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into
common stock. Diluted earnings per share of common stock assumes full conversion of the outstanding convertible notes
and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest
expense, net of tax, and full exercise of outstanding warrants.
For the years ended March 31, 2019 and 2018, diluted earnings 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 applicableto the respective fiscal years, including dividends to be paid after the end of the year.
r. 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, in which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—When thepresentation of financial statements is changed, prior-period financial statements are reclassified in accordance with thenew 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 theperiod 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.
s. New Accounting Pronouncements
Accounting Standards for Revenue Recognition—In March 2018, the ASBJ issued ASBJ Statement No. 29,“Accounting Standard for Revenue Recognition,” and ASBJ Guidance No. 30, “Implementation Guidance on AccountingStandard for Revenue Recognition.” An entity should recognize revenue by applying the following steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The accounting standard and guidance will be applied from the beginning of the fiscal year that begins on or after
April 1, 2021.
The Company is now in the process of measuring the effect of applying the accounting standard and guidance.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201977

FINANCIAL SECTION

Notes to Consolidated Financial Statements

3. BUSINESS COMBINATION
Transactions under Common Control
The Company resolved implementation of organizational restructuring, absorption-type split and merger, among wholly
owned subsidiaries of the Group at the Board of Directors meeting held on December 21, 2017, and implemented theorganizational restructuring based on the resolution in the fiscal year ended March 31, 2019.
Outline of Business Combination(1) Absorption-type split with Yamato Logistics Co., Ltd. (“YLC”) as the successor company
Name and content of business involved in the business combination

Name:
Content:

Technical Network business of Yamato Home Convenience Co., Ltd. (“YHC”)
Business support service regarding household and business equipment

Name:	e-Logistics solution business, e-On Demand solutions business, and Setup and Logistics solutions­business of Yamato System Development Co., Ltd. (“YSD”)
Content:	Storage and distribution processing of cargo, on-demand printing, and kitting support service withlogistics information management system
Name:
Content:

Documents Logistics business of Yamato Packing Service Co., Ltd. (“YPC”)
Enclosing periodicals and sealing service

Date of business combination

April 1, 2018 (effective date)
Legal form of business combination

Absorption-type split with YHC, YSD, and YPC as the absorbed companies and YLC as the successor company
Name of company after business combination

Yamato Logistics Co., Ltd.
(2) Absorption-type merger with YLC as surviving company
Name and business of company involved in the business combination
Surviving company

Name:
Business:

Yamato Logistics Co., Ltd.
Logistics business

Dissolving company

Name:
Business:

Yamato Multi-Maintenance Solutions Co., Ltd. (“YMM”)
Maintenance and repair service for home appliances and total support service regarding recalls

Date of business combination

April 1, 2018 (effective date)
Legal form of business combination

Absorption-type merger with YMM as dissolving company and YLC as surviving company
Name of company after business combination

Yamato Logistics Co., Ltd.
(3) Absorption-type split with Yamato Global Logistics Japan Co., Ltd. (“YGL”) as the successor company
Name and content of business involved in the business combination

Name:
Content:

78

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

Fine Arts Transport business and Overseas Relocation Support business of YLC
Transportation of art and overseas relocation support service including international moving

Date of business combination

April 1, 2018 (effective date)
Legal form of business combination

Absorption-type split with YLC as the absorbed company and YGL as the successor company
Name of company after business combination

Yamato Global Logistics Japan Co., Ltd.
(4) Outline and purpose of business combination

In promoting reform of organizational structures and innovation of the management system under the “KAIKAKU 2019 for
NEXT100” medium-term management plan, the Company implemented the organizational restructuring in order to establish a management structure to meet the sophisticated logistics needs of corporate clients more quickly and accurately andto improve efficiency of operations by integrating similar distinct business of YLC and YGL.
Outline of accounting treatment applied

Based on ASBJ Statement No. 21, “Accounting Standard for Business Combinations,” and ASBJ Guidance No. 10,“Guidance on Accounting Standards for Business Combinations and Business Divestitures,” the Company accounted forthe business combination as transaction under common control.

4. INSTALLMENT RECEIVABLES
Sales recorded on the installment basis were 0.3% of operating revenues in both 2019 and 2018.
Annual maturities of installment receivables at March 31, 2019, and related amortization of deferred profit 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

2020¥22,667¥2,142$204,222$19,295

2021

10,854

1,465

97,795

13,205

2022

6,080

884

54,779

7,962

2023

3,025

464

27,252

4,177

2024

1,362

227

12,274

2,049

814

160

7,336

1,438

¥44,802¥5,342$403,658$48,1262025 and thereafter
Total

5. INVENTORIESInventories at March 31, 2019 and 2018, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

MerchandiseWork in process

2019

2018

2019

¥  643¥  750$ 5,792

194

146

1,749

Raw materials and supplies

2,411

1,920

21,721

Total¥3,248¥2,816$29,262

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

79

FINANCIAL SECTION

Notes to Consolidated Financial Statements

6. MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2019 and 2018, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2018

2019

2019

Non-current:
Marketable equity securities
Non-marketable equity securities
Other
Total

¥33,742¥34,218

944

1,210

8,508

1,543

804

13,900¥36,229¥36,232$326,416$304,008

Information regarding each category of the securities classified as available-for-sale at March 31, 2019 and 2018, is as follows:
Millions of Yen
2019
Cost

Unrealized Gains

Unrealized Losses¥18,765¥25

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥15,002¥33,742Millions of Yen
2018
Cost

Unrealized Gains

Unrealized Losses¥19,426¥6

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥14,798¥34,218

Thousands of U.S. Dollars
2019
Cost

Unrealized Gains

Unrealized Losses$169,068$224

Fair Value

Securities classified as:
Available-for-sale: Equity securities$135,164$304,008

Information for available-for-sale securities, which were sold during the years ended March 31, 2019 and 2018, is as follows:
Millions of Yen
March 31, 2019

Available-for-sale: Equity securities

Proceeds¥72

Realized Gains

Realized Losses

¥37

¥—

Millions of Yen
March 31, 2018

Available-for-sale:
Equity securities
Other
Total

Proceeds

Realized Gains

Realized Losses¥2,672¥1,639¥—¥2,672¥1,639¥—Thousands of U.S. Dollars
March 31, 2019

Available-for-sale: Equity securities

Proceeds$650

Realized Gains

Realized Losses

$334

$—

Loss on valuation of available-for-sale equity securities for the year ended March 31, 2019 and 2018, were ¥39 million($352 thousand) and ¥1 million, respectively.

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YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

7. LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2019 and 2018. As a result, theGroup recognized an impairment loss of ¥2,087 million ($18,808 thousand) as other expense for the asset groups of thehead office and the Kansai Regional Branch of Yamato Home Convenience Co., Ltd. and 21 other asset groups for theyear ended March 31, 2019, and ¥3,241 million as other expense for the asset groups of the Miyagi Regional Branch of
Yamato Transport Co., Ltd. and 14 other asset groups for the year ended March 31, 2018, 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, therelevant asset groups were evaluated mainly based on Real Estate Appraisal Standards, assessed value of fixed assets,
and posted land prices. In the case where the recoverable amounts were measured at its value in use, the discount rates
used for computation of present value of future cash flows for years ended March 31, 2019 and 2018, were 4.55% and5.26%, respectively.

8. BANK LOANS AND LONG-TERM DEBT
Short-term bank loans at March 31, 2019 and 2018, consisted of notes to banks and bank overdrafts. The weightedaverage interest rates applicable to the bank loans as of March 31, 2019 and 2018, were approximately 0.040% and0.134%, respectively.
Long-term debt at March 31, 2019 and 2018, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2019

0.030% to 0.299% loans from banks due 2019 to 2022
0.010% to 0.299% loans from banks due 2018 to 2022
Lease obligations

Total

2019

$ 543,292¥ 93,900

22,934

Unsecured 0.050% bonds due in March 2019
Unsecured 0.090% bonds due in March 2021

2018

¥ 60,300
5,789

206,627

10,00010,00010,00090,09893,234

119,689

840,017

Less current portion(43,592)(45,840)(392,751)

Total¥ 49,642¥ 73,849$ 447,266

Millions of Yen

Thousands of
U.S. Dollars

2020¥43,592$392,751

2021

17,527

157,9182022

15,454

139,237
10,821

Annual maturities of long-term debt at March 31, 2019, are as follows:Year Ending March 31

2023

1,201

2024

1,052

9,481

2025 and thereafter

14,408129,809

Total¥93,234$840,017

YAMATO HOLDINGS CO., LTD.
Integrated Report 201981

FINANCIAL SECTION

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
are entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, andcertain other factors. 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 thetermination 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, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2018

2019

Balance at beginning of year

2019

¥169,653¥158,382$1,528,544

Service cost

12,141

12,221

109,387

Interest cost

169

151

1,522

Actuarial (gain) loss arising during the year

(2,658)

5,884(23,954)

Retirement benefits paid

(7,387)(6,985)(66,547)¥169,653$1,551,575

Past service cost arising during the year
Balance at end of year291
¥172,209

2,623

The changes in plan assets for the years ended March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2018

2019

Balance at beginning of year2019

¥94,287¥87,547$849,508

Expected return on plan assets

943

875

8,495

Actuarial gain arising during the year

295

3,565

2,657

Contributions from the employer

4,386

4,343

39,518Retirement benefits paid

(2,048)(2,043)(18,451)¥97,863¥94,287$881,727

Balance at end of year

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2018

2019

Defined benefit obligation of funded plan2019

¥ 65,259¥ 64,355$ 587,976(97,863)(94,287)(881,727)(32,604)(29,932)(293,751)

Defined benefit obligation of unfunded plan

106,950

105,298

963,599

Net liability arising from defined benefit obligation¥ 74,346¥ 75,366$ 669,848

Plan assets

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

2019

2018

¥74,508¥75,495

2019$671,305

(162)

(129)

(1,457)¥74,346¥75,366$669,848

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

82

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

The components of net periodic benefit costs for the years ended March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Service cost

2019

2018

¥12,141¥12,2212019$109,387

Interest cost

169

151

1,522

Expected return on plan assets

(943)

(875)

(8,495)

Recognized actuarial loss

712

2,321

6,417

Past service cost

291

Others

(47)

(29)

(428)

¥12,323¥13,789$111,026

Net periodic benefit costs

2,623

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined retirement benefit plans for the years ended March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2018

2019

2019

Actuarial gain

¥3,665¥2$33,028

Total¥3,665¥2$33,028

Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect ofdefined retirement benefit plans as of March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2019

2018

2019

Unrecognized actuarial loss¥(4,363)¥(8,028)$(39,306)

Total¥(4,363)¥(8,028)$(39,306)

2019

2018

Plan assets as of March 31, 2019 and 2018, consisted of the following:
General accounts

32%

30%

Debt investments

25

25

Equity investments

22

23

Others

21

22

Total

100%

100%

Assumptions used for the years ended March 31, 2019 and 2018, were set forth as follows:
2019

2018

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 of respective 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, 2019and 2018, were ¥2,432 million ($21,910 thousand) and ¥2,330 million, respectively.

YAMATO HOLDINGS CO., LTD.
Integrated Report 201983

FINANCIAL SECTION

Notes to Consolidated Financial Statements

10.		 ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of yearAdditional provisions associated with the acquisition of property,
plant and equipment

2019

2018

2019

¥5,800¥5,535$52,254

2,263

257

20,393

Reconciliation associated with passage of time

106

104

953

Reconciliation associated with changes in accounting estimates

629

(1)

5,670

Reduction associated with settlement of asset retirement obligations

(92)

(85)

(826)

Others

(20)

(10)

(185)

¥8,686¥5,800$78,259

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 thechange, which resulted in an increase and decrease of the asset retirement obligation for the years ended March 31, 2019and 2018, by ¥629 million ($5,670 thousand) and ¥1 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 being prescribed 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 acertain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available fordividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount 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 of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common 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 capital surplus, and retained earnings can be transferred among the accounts within equity undercertain conditions upon resolution of 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 the Board 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 canpurchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented asa separate component of equity.

84

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

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 30.6% and 30.9% for the years ended March 31, 2019 and 2018,
respectively.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets andliabilities at March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2019

2018

2019

Deferred tax assets:  Accrued expenses¥ 10,956¥ 10,146$  98,716   Legal welfare expense

1,808

1,659

16,292  Enterprise tax

2,309

1,502

20,803

623

543

5,611

   Allowance for doubtful accounts   Tax loss carryforwards

7,433

10,466

66,968   Liability for employees’ retirement benefits

22,90923,184

206,406   Loss on valuation of land

20,75920,759187,038   Loss on impairment of long-lived assets

4,732

4,211

42,636   Loss on valuation of investment securities

1,771

1,731

15,955  Unrealized profit

2,763

2,457

24,892

404

469

3,637

  Other

7,719

6,009

69,548

83,136758,502   Loss on valuation of telephone subscription rights   Total of tax loss carryforwards and temporary differences

84,186   Less valuation allowance for tax loss carryforwards(7,400)   Less valuation allowance for temporary differences(27,306)   Total valuation allowance(34,706)(31,885)(312,698)¥ 49,480¥ 51,251$ 445,804¥ (5,073)¥ (5,125)$ (45,702)(4,202)(3,192)(37,864)

Deferred tax liabilities¥ (9,275)¥ (8,317)$ (83,566)

Deferred tax assets—net¥ 40,205¥ 42,934$ 362,238

Deferred tax assets(66,674)(246,024)

Deferred tax liabilities:   Unrealized gain on available-for-sale securities  Other

YAMATO HOLDINGS CO., LTD.
Integrated Report 201985

FINANCIAL SECTION

Notes to Consolidated Financial Statements

The expiration of tax loss carryforwards, the related valuation allowances and the resulting net deferred tax assets as ofMarch 31, 2019, are as follows:
Millions of Yen

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

2020¥  400¥  (400)

¥—

2021

509

(482)

27

2022

432

(432)

2023

451

(451)

2024

446

(446)

2025 and thereafter

5,195(5,189)6

Total¥7,433¥(7,400)¥33

Thousands of U.S. Dollars

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

2020$ 3,608$ (3,608)

$ —

2021

4,582

(4,336)

246

2022

3,893

(3,893)

2023

4,063

(4,063)

2024

4,022

(4,022)2025 and thereafter

46,800(46,752)

48

Total

$66,968$(66,674)$294

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, 2019, with the corresponding figures for 2018 was
as follows:
2019

86

2018

Normal effective statutory tax rate

30.6%

30.9%

Per capita levy of local taxes

6.1

9.2

Difference of tax rates for foreign subsidiaries

3.6

2.8

Valuation allowance

5.4

(0.0)

Other—net

4.6

0.7

Actual effective tax rate

50.3%

43.6%

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

13.		 LEASES(1) Lessee
The Group leases certain building, machinery, computer equipment and other assets.
Future rental payments under non-cancelable operating leases at March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Due within one year

2019

2018

¥ 5,176¥ 3,066

2019$ 46,635

Due after one year

29,33932,812

264,337

Total¥34,515¥35,878$310,972(2) Lessor
The net investments in lease as of March 31, 2019 and 2018, were summarized as follows:
Thousands of
U.S. Dollars

Millions of Yen

Gross lease receivables

2019

2018

¥51,428¥49,7972019$463,356

Unguaranteed residual values

6,969

6,584

62,793

Unearned interest income(4,246)(3,739)(38,254)¥54,151¥52,642$487,895

Investments in leases—current

Maturities of lease receivables for finance leases that deem to transfer ownership of the leased property to the lessee as ofMarch 31, 2019, are as follows:
Millions of Yen

Thousands of
U.S. Dollars

2020

¥ 86

$  772

2021

85

761

2022

83

751

2023

88

791

2024

78

707

Year Ending March 312025 and thereafter
Total

5

49

¥425

$3,831Maturities of investments in lease for finance leases that deem not to transfer ownership of the leased property to thelessee as of March 31, 2019, are as follows:
Millions of Yen

Thousands of
U.S. Dollars

2020¥17,858$160,899

2021

14,128127,292

2022

10,36593,387

2023

6,236

56,180

2024

2,394

21,571

Year Ending March 312025 and thereafter
Total

447

4,027

¥51,428$463,356

The minimum rental commitments under non-cancelable operating leases at March 31, 2019 and 2018, are as follows:
Thousands of
U.S. Dollars

Millions of Yen
2019

2018

2019

Due within one year

¥4,024¥ 4,399$36,254

Due after one year

5,621

7,154

50,643

Total¥9,645¥11,553$86,897

YAMATO HOLDINGS CO., LTD.
Integrated Report 201987

FINANCIAL SECTION

Notes to Consolidated Financial Statements

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 business based on its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets.
Derivatives are used, not for speculative purposes, but to manage exposure to interest fluctuation risk. Certain consolidated subsidiaries conduct leasing 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. Most of the bank loans are
fixed interest rate loans.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as
through fund 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, otherrational valuation techniques are used instead. The value could vary depending on the technique used.
Fair values of financial instruments at March 31, 2019 and 2018, were as follows:
Millions of Yen
March 31, 2019

Carrying Amount

Fair Value

Difference

Assets:Cash and cash equivalents¥195,955

Trade notes and accounts receivable

220,159   Allowance for doubtful accounts¥195,955(108)
220,051

219,922¥ (129)38,331

43,602

5,271

Available-for-sale securities

33,742

33,742

Shares of affiliates

9,036

9,036

Trade notes and accounts payable

158,938

158,938

Short-term loans

60,80060,789(11)

Long-term loans

19,50019,5077Installment sales receivable   Allowance for doubtful accounts   Deferred profit on installment sales

44,802(1,129)(5,342)

Liabilities:

88

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

Millions of Yen
March 31, 2018

Carrying Amount

Fair Value

Difference

Assets:Cash and cash equivalents¥204,422

Trade notes and accounts receivable

224,099   Allowance for doubtful accounts¥204,422(113)
223,986

223,781¥ (205)40,03845,782

5,744

Available-for-sale securities

34,21834,218

Shares of affiliates

13,592

21,259Trade notes and accounts payable

155,324

155,324

Short-term loans

66,952

66,96614

Long-term loans

60,30060,283(17)

Installment sales receivable   Allowance for doubtful accounts   Deferred profit on installment sales

46,693(755)(5,900)7,667

Liabilities:

Thousands of U.S. Dollars
March 31, 2019

Carrying Amount

Fair Value

Difference

Cash and cash equivalents$1,765,519$1,765,519

Trade notes and accounts receivable

1,983,596

Assets:   Allowance for doubtful accounts(979)
1,982,617

1,981,457$ (1,160)

345,352

392,849

47,497Available-for-sale securities

304,008

304,008

Shares of affiliates

81,417

81,417Installment sales receivable   Allowance for doubtful accounts   Deferred profit on installment sales

403,658(10,180)(48,126)

Liabilities:
Trade notes and accounts payable

1,432,003

1,432,003

Short-term loans

547,797547,694(103)

Long-term loans

175,691

175,754

63

YAMATO HOLDINGS CO., LTD.
Integrated Report 201989

FINANCIAL SECTION

Notes to Consolidated Financial Statements

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 thereceivables at the rate 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 atthe market interest rate.
Marketable and investment securities

The fair values of marketable and investment securities are measured at the quoted market price of the stock exchange forthe equity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. Fairvalue 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 tothe debt 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-termbank loans on the consolidated balance sheet. Lease payments are not included in long-term loans in the above table.
(4) Financial Instruments Whose Fair Value Cannot Be Reliably Determined
Thousands of
U.S. Dollars

Millions of Yen

90

2019

2018

2019

Shares of affiliates¥5,650¥6,412$50,907

Other

5,585

5,620

50,319YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen
March 31, 2019

Due in One Yearor Less

Due after One Yearthrough Five Years

Due after
Five Years

Cash and cash equivalents¥195,955

Trade notes and accounts receivable

203,228¥16,898

Installment sales receivable

22,667

21,321814¥421,850¥38,219¥847

Due in One Yearor Less

Due after One Yearthrough Five Years

Total

¥ 33

Millions of Yen
March 31, 2018

Due after
Five Years

Cash and cash equivalents¥204,422

Trade notes and accounts receivable

205,743¥18,165

Installment sales receivable

23,306

22,571816¥433,471¥40,736¥1,007

Total¥  191Thousands of U.S. Dollars
March 31, 2019

Due in One Yearor Less

Cash and cash equivalents$1,765,519

Trade notes and accounts receivable

1,831,055

Installment sales receivable
Total

Due after One Yearthrough Five Years$152,249

Due after
Five Years$  292204,222

192,100

7,336$3,800,796$344,349$7,628(6) Maturity Analysis for Long-Term Loans
Millions of Yen

Thousands of
U.S. Dollars

2020¥40,800$367,601

2021

5,500

49,5542022

14,000126,137

Total¥60,300$543,292

Year Ending March 31

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

YAMATO HOLDINGS CO., LTD.
Integrated Report 201991

FINANCIAL SECTION

Notes to Consolidated Financial Statements

15.		 OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2019 and 2018, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2019

2018

2019

$ (1,184)

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

¥ (132)¥ 5,567

Reclassification adjustments to profit or loss

(37)

(1,639)(334)

Amount before income tax effect

(169)

3,928

(1,518)53(1,414)474¥ (116)¥ 2,514$ (1,044)¥(1,661)¥ 1,658$(14,968)

Income tax effectTotal
Foreign currency translation adjustments:
Adjustments arising during the year
Reclassification adjustments to profit or loss

(89)

Total

¥(1,661)¥ 1,569$(14,968)¥ 2,953¥(2,319)$ 26,611

712

2,321

6,417

Amount before income tax effect

3,665

2

33,028

Income tax effect(1,124)(1)(10,128)

Total¥ 2,541¥1$ 22,900¥¥—$ 2,466¥ 4,084$ 9,354

Remeasurements of defined employees’ retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss

Share of other comprehensive income of entities accounted for using equity method:
Adjustments arising during the year
Total other comprehensive income274¥ 1,038

16.		 EARNINGS PER SHARE
Basic earnings per share (“EPS”) for the years ended March 31, 2019 and 2018, was as follows:
Millions of Yen
Year Ended March 31, 2019

Basic EPS—Profit attributable to common shareholders

Thousands ofSharesProfit Attributable to Weighted-average
Owners of Parent
SharesYen

U.S. Dollars
EPS¥25,682

394,275¥65.14¥18,232

394,277¥46.24

Year Ended March 31, 2018

Basic EPS—Profit attributable to common shareholders

92

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019$0.59

17.		 SEGMENT INFORMATION(1) Description of Reportable Segments
The Group identifies operating segments as components of entity for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to beallocated to the segments and assess their performance.
The Company, as a pure holding company, forms six reportable segments classified according to business content andmanages them based on these reportable segments. Therefore, the Group has the following six reporting segments:“Delivery,” “BIZ-Logistics,” “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) and Kuroneko 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 of
information 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) M ethods of Measurement for the Amounts of Segment Revenues, Segment Profit, 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.”

YAMATO HOLDINGS CO., LTD.
Integrated Report 201993

FINANCIAL SECTION

Notes to Consolidated Financial Statements(3) Information about Segment Revenues, Segment Profit, Segment Assets, and Other Items
Millions of Yen

2019Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated¥147,437
12,282¥159,719¥33,405
12,623¥46,028¥26,593
41,153¥67,746¥ 79,967
2,856¥ 82,823¥25,985
31,416¥57,401¥14,705
46,298¥61,003¥1,625,315
210,765¥1,836,080¥

Total segment revenues¥1,297,223
64,137¥1,361,360—(210,765)¥(210,765)¥1,625,315

Segment profit (loss)¥

40,788718,911¥  3,329
77,463¥ (7,765)
12,281¥ 8,740
44,136¥  6,245
257,207¥ 4,434
29,379¥19,373
22,386¥ 75,144
1,161,763¥ (16,798)(38,103)¥   58,346
1,123,660

37,221

2,575

515

3,531

6,000

645

622

51,109238

51,347

426

4,836

5,262

9,252

14,51456,896

5,212

79,707

132

79,839Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets¥1,625,315

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

764

1,571

7,104

513

7,647

Millions of Yen

2018
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated¥145,148
14,093¥159,241¥44,868
13,409¥58,277¥27,30338,724¥66,027¥ 82,956
2,901¥ 85,857¥24,642
30,299¥54,941¥12,126
44,273¥56,399¥1,538,813
213,369¥1,752,182¥

Total segment revenues¥1,201,770
69,670¥1,271,440—(213,369)¥(213,369)¥1,538,813

Segment profit

¥

6,757
662,598¥  7,054
76,556¥ 199
21,948¥ 7,945
47,325¥  7,914
258,500¥ 4,141
28,014¥17,217
13,543¥ 51,227
1,108,484¥ (15,541)
6,386¥   35,686
1,114,870

32,916

2,413

579

3,867

5,233

696

374

46,078345

46,423

523

5,349

5,872

13,957

19,82934,3804,088

54,168314

54,482

Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets¥1,538,813

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

875

1,546

11,645830

804

Thousands of U.S. Dollars

2019
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated$1,328,387
110,657$1,439,044$300,969
113,732$414,701$239,598
370,782$610,380$  720,488
25,737$  746,225$234,123
283,048$517,171$132,490
417,134$549,624$14,643,799
1,898,951$16,542,750$

Total segment revenues$11,687,744
577,861$12,265,605

Segment profit (loss)$

367,489
6,477,260$   29,995
697,925$ (69,957)
110,650$ 78,748
397,658$   56,264
2,317,390$ 39,948
264,696$174,547
201,693$ 677,034
10,467,272$  (151,351) $ 525,683(343,300) 10,123,972

4,638

31,81754,059

5,809

5,603

460,4782,146

462,624

47,41583,356

130,771

718,140

1,191

719,331

Segment revenues:Segment revenues
from customers
Intersegment revenues

Segment assets— $14,643,799(1,898,951)$(1,898,951) $14,643,799

Other:
Depreciation and amortization

335,355

23,197

Investment in entities  accounted for using
equity method

3,841

43,574

Increase of tangible and   intangible fixed assets

512,626

46,9626,880

14,15364,001

4,618

68,900Notes:	Effective from the fiscal year ended March 31, 2019, changes have been made to reportable segments for certain businesses as a result of organizational restructuring being
carried out to reform organizational structures and innovate the management system under the “KAIKAKU 2019 for NEXT100” medium-term management plan. As theprincipal points of change, the Technical Network business, which was previously included in Home Convenience, the e-Logistics solution business, e-On Demand solutions
business and Setup and Logistics solutions business, which previously were included in e-Business, are included in Biz-Logistics. The segment information for the fiscal year
ended March 31, 2018 has been prepared and presented according to the new classification.
“Other” includes JITBOX charter services and shared services.
	Segment revenues and segment profit of “Other” include dividends for the years ended March 31, 2019 and 2018, of ¥18,594 million ($167,527 thousand) and ¥17,483 million, respectively, which the Company received from its subsidiaries as a pure holding company.
	Reconciliations are as follows:		 (1) R econciliations of segment profit for the years ended March 31, 2019 and 2018, of ¥16,798 million ($151,351 thousand) and ¥15,541 million, respectively, are intersegment eliminations and others.
		 (2) R econciliations of segment assets at March 31, 2019 and 2018, of ¥38,103 million ($343,300 thousand) and ¥6,386 million, respectively, include intersegment eliminations of assets and liabilities of ¥184,580 million ($1,663,029 thousand) and ¥154,869 million, and corporate assets which are not allocated to each reporting segmentof ¥146,477 million ($1,319,729 thousand) and ¥161,255 million, respectively.
		 (3) R econciliations of investments in entities accounted for using equity method at March 31, 2019 and 2018, of ¥9,252 million ($83,356 thousand) and ¥13,957 million,
respectively, are investments which are not allocated to each reporting segment.
		 (4) R econciliations of increases of tangible and intangible fixed assets at March 31, 2019 and 2018, of ¥132 million ($1,191 thousand) and ¥314 million, respectively,
include the Company’s capital investment.
Segment profit is reconciled with operating profit in the consolidated statement of income.

94

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

[Related Information about Reporting Segments](1) Information about Products and Services
Operating revenues from customers for the years ended March 31, 2019 and 2018, were as follows:
Millions of Yen
2018

2019
TA-Q-BIN

Kuroneko DM-Bin¥1,139,438

Other¥69,678¥416,199

Total

TA-Q-BIN¥1,625,315¥1,035,053

Kuroneko DM-Bin

Other¥78,789

Total¥424,971¥1,538,813

Thousands of U.S. Dollars
2019
TA-Q-BIN$10,266,131

Kuroneko DM-Bin

Other$627,792

Total$3,749,876 $14,643,799(2) Information about Geographical Areas
Operating revenues for the years ended March 31, 2019 and 2018, were as follows:
Millions of Yen
2018

2019
Japan

North America¥1,595,703

Other¥12,212¥17,400

Total

Japan

North America¥1,625,315¥1,510,742

Other¥10,848

Total¥17,223¥1,538,813

Thousands of U.S. Dollars
2019
Japan

$14,376,999

North America

Other$110,025

Total$156,775 $14,643,799

Property, plant and equipment at March 31, 2019 and 2018, were as follows:
Millions of Yen
2018

2019
Japan

North America¥427,384

Other

¥385

Total

¥1,149Japan

North America¥403,241¥428,918

Other

¥370

Total

¥1,447¥405,058

Thousands of U.S. Dollars
2019
Japan

North America$3,850,656$3,471

Other

Total

$10,350$3,864,477(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, 2019 and 2018, were as
follows:
Millions of Yen
2019

Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

Home
Convenience

¥546

¥265

¥1,276e-Business

Financial

Autoworks

Other

Total

¥2,087

Eliminations or
Corporate
Consolidated¥2,087

Millions of Yen
2018

Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

Home
Convenience¥2,426¥685¥38

e-Business

Financial

Autoworks

Other

¥92

Total

¥3,241Eliminations or
Corporate
Consolidated¥3,241Thousands of U.S. Dollars
2019Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

Home
Convenience$4,923$2,391$11,494e-Business

Financial

Autoworks

Other

Total

$18,808

Eliminations or
Corporate
Consolidated$18,808

YAMATO HOLDINGS CO., LTD.
Integrated Report 201995

FINANCIAL SECTION

Notes to Consolidated Financial Statements

18.		 SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2019, was approved at the Company’s Board of Directors
meeting held on May 15, 2019:Year-end cash dividends, ¥14.00 ($0.13) per share

96

YAMATO HOLDINGS CO., LTD.
Integrated Report 2019

Millions of Yen

Thousands of
U.S. Dollars¥5,520$49,733

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 ofMarch 31, 2019, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for theyear 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 inaccordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtainreasonable assurance 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
the consolidated 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 that are 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 by management, 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, 2019, and the consolidated results of theiroperations 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 arepresented solely for the convenience of readers outside Japan.

June 14, 2019

YAMATO HOLDINGS CO., LTD.
Integrated Report 201997