Financial Section
58 Consolidated Balance Sheet
60 Consolidated Statement of Income
61 Consolidated Statement ofComprehensive Income

62 Consolidated Statement of
Changes in Equity

63 Consolidated Statement of
Cash Flows

64 Notes to Consolidated Financial
Statements

86 Independent Auditor’s Report

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201557

Consolidated Balance Sheet
March 31, 2015

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

ASSETS

2015

2014

2015

¥ 247,398¥ 220,148$ 2,058,737

Trade187,834

188,145

1,563,066

Installment (Note 5)

42,00839,480349,570

Lease (Note 14)

44,94835,329374,039

Allowance for doubtful accounts(1,338)(1,591)(11,139)

Inventories (Note 6)

3,336

3,237

27,760

Deferred tax assets (Note 13)

15,687

16,548130,542

Prepaid expenses and other current assets

26,33326,063

219,133

566,206

527,359

4,711,708

187,964
334,120
194,198

188,344329,289
187,882

1,564,152
2,780,392
1,616,027

123,025
24,02916,025

121,422
23,944
7,895

1,023,757
199,957
133,353

CURRENT ASSETS:
Cash and cash equivalents (Notes 2.d and 15)
Notes and accounts receivable (Note 15):

Total current assets

PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
VehiclesMachinery and equipment
Leased assets (Note 14)
Construction in progress
Others
Total
Accumulated depreciation
Net property, plant and equipment

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 7 and 15)
Investments in and advances to unconsolidated subsidiaries and affiliates
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 13)
Other assets (Note 10)
Total investments and other assets
TOTAL
See notes to consolidated financial statements.

58

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

17,795

11,662148,088

897,156

870,438

7,465,726(477,055)(453,310)(3,969,837)

420,101

417,128

3,495,889

33,843724
1,040
12,646
17,902
21,97825,577644
961
12,343
18,46821,687

281,630
6,024
8,655
105,236
148,971
182,889

8,091

7,967

67,331

96,224

87,647800,736¥1,082,531¥1,032,134$ 9,008,333

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

LIABILITIES AND EQUITY

2014

2015

2015

CURRENT LIABILITIES:
Short-term bank loans (Notes 9 and 15)

19,256$ 147,842

29,071

21,941

241,920Trade

157,480

172,463

1,310,476

Other

10,47021,942

87,12620,02420,908

166,632

Current portion of long-term debt (Notes 9, 15 and 16)¥

17,766¥

Notes and accounts payable (Note 15):

Income taxes payable
Employees’ savings deposits

4,944

4,723

41,138

Accrued expenses

61,29561,535510,070

Deferred profit on installment sales (Notes 5 and 15)

5,655

5,349

47,061Other current liabilities (Note 11)50,32919,243418,811

Total current liabilities

357,034

347,360

2,971,076

Long-term debt (Notes 9, 15 and 16)

88,532

66,646

736,724

Liability for employees’ retirement benefits (Notes 2.j, 3 and 10)

53,02447,224441,237

Deferred tax liabilities (Note 13)

3,948

1,808

32,853

Other long-term liabilities (Note 11)

8,794

8,924

73,180Total long-term liabilities

154,298

124,602

1,283,994

Common stock—authorized, 1,787,541,000 shares in 2015 and 2014;
issued, 435,564,792 shares in 2015 and454,684,992 shares in 2014

127,235

127,235

1,058,790

Capital surplus

70,209100,863584,249

Retained earnings

395,353

371,965

3,289,947

Treasury stock—at cost, 22,370,985 shares in 2015 and35,742,057 shares in 2014

(43,008)(56,079)(357,891)

Unrealized gain on available-for-sale securities

13,8488,770

115,234

Foreign currency translation adjustments

1,169

342

9,728

715

(1,717)

5,952

Total

565,521551,379

4,706,009

Minority interests

5,678

8,793

47,254

LONG-TERM LIABILITIES:COMMITMENTS LIABILITIES (Note 14)
EQUITY (Notes 12 and 20):

Accumulated other comprehensive income:Remeasurements of defined employees’ retirement benefit plans (Notes 2.j and 10)

Total equity
TOTAL

571,199

560,172

4,753,263¥1,082,531¥1,032,134$9,008,333

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201559

Consolidated Statement of Income
Year Ended March 31, 2015

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2015

2014

2015

¥1,396,708¥1,374,610$11,622,771

1,290,715

1,274,471

10,740,742

37,04637,043308,282

1,327,761

1,311,514

11,049,024

68,94763,096

573,747

Interest and dividend income

674

622

5,604

Interest expense

(398)

(412)

(3,312)

(2)

1,461

(13)

(1,792)(217)(14,910)

7

1

58

1,722

1,334

14,325

211

2,786

1,752

69,15865,882575,499

Current

29,81532,604

248,106

Deferred

1,740(1,601)

14,47831,55531,003

262,584

37,60334,879312,91570

103

OPERATING REVENUESOPERATING COSTS AND EXPENSES:
Operating costs
Selling, general and administrative expenses
Total operating costs and expenses
Operating income
OTHER INCOME (EXPENSES):(Loss) gain on sales and disposal of property, plant and equipment—net
Loss on impairment of long-lived assets (Note 8)
Gain on sales of marketable and investment securities (Note 7)
Loss on valuation of investment securities (Note 7)(3)

Other—net
Other income—net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXES (Note 13):

Total income taxes
NET INCOME BEFORE MINORITY INTERESTSMINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIESNET INCOME¥

37,533¥

34,776579$

312,336
U.S. Dollars(Note 1)

Yen
2015

2014

Basic net income¥90.41¥82.22$0.75

Diluted net income

88.26

80.18

0.73

Cash dividends applicable to the year

25.00

24.00

0.21

2015

PER SHARE OF COMMON STOCK (Notes 2.r and 18):

See notes to consolidated financial statements.

60

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Consolidated Statement of Comprehensive Income
Year Ended March 31, 2015

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

NET INCOME BEFORE MINORITY INTERESTS

2015

2014

¥37,603¥34,879$312,915

5,371

2,938

44,693

826

1,408

6,878

2015

OTHER COMPREHENSIVE INCOME (Note 17):
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined employees’ retirement benefit plans
Total other comprehensive income
COMPREHENSIVE INCOME

2,443

20,328

8,640

4,346

71,899¥46,243¥39,225$384,814¥45,878¥38,825$381,774

365

400

3,040

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

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201561

Consolidated Statement of Changes in Equity
Year Ended March 31, 2015

Thousands

Millions of Yen
Accumulated Other Comprehensive Income

BALANCE,APRIL 1, 2013

Outstanding
Number of
Shares ofCommon Stock

Common Stock423,714¥127,235

Capital Surplus Retained Earnings Treasury Stock¥111,291¥347,358¥(56,496)

Remeasurements
Unrealizedof Defined
Gain onForeign Currency
Employees’
Available-for-Sale
Translation
Retirement Benefit
Securities
Adjustments
Plans¥ 6,095¥(1,032)

¥

–

Total

Minority Interests¥534,451¥ 8,464

Total Equity¥542,915

Net income

34,776

34,776

34,776

Cash dividends,¥24 per share(10,169)(10,169)(10,169)(10,012)(10,012)(10,012)11

1Purchase oftreasury stock(4,771)

Disposal oftreasury stock
Retirement oftreasury stock(10,428)

10,428Net change in the year
BALANCE,MARCH 31, 2014

418,943

127,235

100,863

371,965

127,235

100,863

367,885

Cumulative effects ofchanges in an accounting
policy (Note 3)

2,675

1,374

(1,717)

2,332

329

2,661

(56,079)

8,770

342

(1,717)551,379

8,793

560,172(4,080)(18)(4,098)(56,079)

8,770

342

(1,717)547,299

8,775

556,074(4,080)RESTATED BALANCE
Net income

37,53337,53337,533

Cash dividends,¥24 per share(10,065)(10,065)(10,065)(30,588)(30,588)(30,588)(405)

10,746

10,341

10,341(31,507)

31,507

1,258

1,406

2,664

2,664

Purchase oftreasury stock(12,235)

Disposal oftreasury stock

5,590

Retirement oftreasury stock
Change in equity related
to transaction with noncontrolling shareholders(Notes 3 and 4)

896

Net change in the year
BALANCE,MARCH 31, 2015

413,194¥127,235¥ 70,209¥395,353¥(43,008)

5,078

827

¥ 13,848¥ 1,169

¥

2,432

8,337

(3,097)

5,240

715

¥565,521¥ 5,678¥571,199

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

Common Stock

BALANCE,MARCH 31, 2014

Capital Surplus Retained Earnings Treasury Stock$1,058,790$839,341$3,095,325

1,058,790

839,341

3,061,371

Cumulative effects ofchanges in an accounting
policy (Note 3)
RESTATED BALANCE

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

Total

$(466,668)$ 72,980$2,850$(14,289) $4,588,329(466,668)

72,9802,850(14,289)(33,954)

Minority Interests$ 73,169

Total Equity$4,661,498(33,954)(143)(34,097)

4,554,375

73,026

4,627,401

Net income

312,336

312,336

312,336

Cash dividends,$0.20 per share(83,760)(83,760)(83,760)(254,537)(254,537)(254,537)

86,05186,051

22,171

22,171

Purchase oftreasury stock
Disposal oftreasury stock(3,369)89,420Retirement oftreasury stock(262,189)

262,189

10,466

11,705

Change in equity related
to transaction with noncontrolling shareholders(Notes 3 and 4)
Net change in the year
BALANCE,MARCH 31, 2015

$1,058,790

See notes to consolidated financial statements.

62

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

$584,249$3,289,947$(357,891)

42,254

6,878

20,241

69,373(25,772)

43,601$115,234$9,728$ 5,952$4,706,009$ 47,254$4,753,263

Consolidated Statement of Cash Flows
Year Ended March 31, 2015

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2014

2015

2015

OPERATING ACTIVITIES:
Income before income taxes and minority interests¥ 69,158¥ 65,882$ 575,499

Income taxes—paid(30,362)(35,437)(252,657)

Depreciation and amortization

46,07842,284383,443

Adjustments for:

Loss (gain) on sales and disposal of property, plant and equipment—net
Loss on impairment of long-lived assets
Gain on sales of marketable and investment securities

2(1,461)

13

1,792

217

14,910

(7)

(1)

(58)

Loss on valuation of investment securities

3

Changes in assets and liabilities:
Increase in notes and accounts receivable(11,898)(38,786)

(47)

401

(388)

(Decrease) increase in notes and accounts payable(14,666)

33,411(122,043)

Increase in liability for employees’ retirement benefits

2,796

6,278

23,265(Increase) decrease in inventories

Other—net(99,010)

29,774

7,284

247,770

Total adjustments

23,462

14,193

195,245

Net cash provided by operating activities

92,62080,075

770,744

2,539

4,238

21,124(54,308)(65,212)(451,927)

14

2

118

(1,021)(11)(8,498)INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Proceeds from sales of marketable and investment securities
Purchases of marketable and investment securities(Increase) decrease in investments in and advances to unconsolidated subsidiaries and affiliates

(127)

375

(1,059)Collection of loans

1,210

1,120

10,068

Payment of loans(1,292)(1,154)(10,748)

Other(5,500)(4,294)(45,767)(58,485)(64,936)(486,689)(6,757)(1,681)(56,225)

Net cash used in investing activities
FINANCING ACTIVITIES:
Repayments of short-term debt—net
Proceeds from long-term debt

60,40027,007

502,621

Repayments of long-term debt

(19,392)(14,145)(161,369)

Dividends paid

(10,146)(10,235)(84,433)

Purchase of treasury stock—net(30,592)(10,013)(254,570)

Other
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS

(682)

34

(5,680)(7,169)(9,033)(59,656)

690

648

5,742

NET INCREASE IN CASH AND CASH EQUIVALENTS

27,656

6,754

230,141

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

219,395

212,641

1,825,707

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.d)¥247,051¥219,395$2,055,848

¥

¥

$

NONCASH INVESTING AND FINANCING ACTIVITIES:
Decrease in capital surplus due to exercise of stock acquisition rights

(405)

–

(3,370)Decrease in treasury stock due to exercise of stock acquisition rights

10,74589,415Decrease in zero coupon convertible bonds due to exercise of stock acquisition rights

10,34086,045

See notes to consolidated financial statements.

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201563

Notes to Consolidated Financial Statements
Year Ended March 31, 2015

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 2014 consolidated financial statements to conform them to the classifications and presentations used in 2015.
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 ¥120.17 to $1, the approximate
rate of exchange at March 31, 2015. 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, 2015, include the accounts of the Company and its 39
significant (41 in 2014) 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 no affiliates accounted for by the equity method in 2015 or 2014.
Investments in the unconsolidated subsidiaries and affiliates are stated at cost, 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—In May 2006,
the Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ Practical Issues Task Force (PITF) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements.” PITF No. 18 prescribesthat 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 foreign subsidiaries in accordance with either International Financial Reporting Standards or thegenerally 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 not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain orloss of pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costsof R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting; and (e) exclusion of minority interests from net income, if contained in net income.
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.
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.

64

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

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 is as follows:
Thousands of
U.S. Dollars

Millions of Yen
2014

2015

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

2015¥247,398¥220,148$2,058,737

(36)

(445)

(300)

(311)

(308)

(2,589)¥247,051¥219,395$2,055,848

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 the 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,
2015 and 2014.
Nonmarketable 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 andequipment excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantially by
the declining-balance method, while the straight-line method is applied to buildings acquired after April 1, 1998. Depreciationof 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.
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. 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 with thesedefined 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 five years within the average remaining service period of the eligible employees on and after the fiscal year following the
fiscal year in which it arises.

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

65

In May 2012, the ASBJ issued ASBJ Statement No. 26, “Accounting Standard for Retirement Benefits” and ASBJ Guidance
No. 25, “Guidance on Accounting Standard for Retirement Benefits,” which replaced the former standard and the other related
practical guidance.
Under the revised accounting standard, 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.
In addition, the Company changed its accounting policy for “Retirement and Pension Plan” from the beginning of the fiscal
year ended March 31, 2015 (see Note 3).
k. Asset Retirement Obligations—In March 2008, the ASBJ issued ASBJ Statement No. 18, “Accounting Standard for Asset
Retirement Obligations” and ASBJ Guidance No. 21, “Guidance on Accounting Standard for Asset Retirement Obligations.” Under
this accounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law or contract that
results from the acquisition, construction, development, and normal operation of a tangible fixed asset and is associated with theretirement 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.
l. 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 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.
m. 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 laws to the temporary differences.
n. Appropriations of Retained Earnings—Appropriations of retained earnings at each year-end are reflected in the consolidated financial statements for the following year upon shareholders’ approval.
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—Certain consolidated subsidiaries use derivative financial instruments to manage their exposures to fluctuations in interest rates. Interest rate swaps are utilized by the consolidated subsidiaries to reduce interest rate risks. The
consolidated subsidiaries do not 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 are 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.

66

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

r. Per Share Information—Basic net income per share is computed by dividing net income available 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.
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—In December 2009, the ASBJ issued ASBJ Statement No. 24, “AccountingStandard for Accounting Changes and Error Corrections” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for
Accounting Changes and Error Corrections.” Accounting treatments under this standard and guidance are 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 CHANGE
Accounting Standard for Retirement Benefits—The ASBJ revised ASBJ Statement No. 26, “Accounting Standard for Retirement
Benefits” in May 2012, and ASBJ Guidance No. 25, “Guidance on Accounting Standard for Retirement Benefits” in March 2015.
The accounting standard revised calculation methods for defined benefit obligation and service cost.
The Company applied the revised accounting standard effective from the beginning of the fiscal year ended March 31, 2015.
In applying of the revised accounting standard, the Company reviewed the calculation method of retirement benefit obligations
and service cost and amended the determination of discount rate from one that is based on the period of years approximate to
the expected average remaining working lives of employees to one that uses a single weighted average discount rate reflecting theestimated timing and amount of benefit payment.
In applying the accounting standard, the effect of the review described above has been added to or deducted from retained
earnings as of the beginning of the fiscal year ended March 31, 2015.
As a result of this change, as of the beginning of the fiscal year ended March 31, 2015, liabilities for employees’ retirement
benefits increased by ¥6,262 million ($52,110 thousand), deferred tax assets increased by ¥2,215 million ($18,430 thousand), andretained earnings decreased by ¥4,080 million ($33,954 thousand).
In addition, the effects of this change on operating income and income before income taxes and minority interests for the
fiscal year ended March 31, 2015, are immaterial. Net assets per share decreased by ¥9.87 ($0.08).
Accounting Standards for Business Combinations—In September 2013, the ASBJ revised ASBJ Statement No. 21, “AccountingStandard for Business Combinations,” ASBJ Statement No. 22, “Accounting Standard for Consolidated Financial Statements,” ASBJ
Statement No. 7, “Accounting Standard for Business Divestitures” and related standards and implementation guidance.
The accounting standards revised mainly as follows: (a) accounting treatment of transactions with non-controlling interest;(b) accounting treatment of acquisition-related costs; and (c) provisional accounting treatments for a business combination.
The Company early applied the above revised accounting standards for (a) and (b), effective from the beginning of the fiscal
year ended March 31, 2015, and for (c), effective for a business combination occurring on or after the beginning of the fiscal year
ended March 31, 2015.
As a result, changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity transactions, and acquisition-related costs shall be accounted as expenses in the periods in which the costs are
incurred and the services are received. Furthermore, adjustments to items recognized in the original accounting for a businesscombination, for a maximum of one year after the acquisition date, are made retrospectively as if those adjustments had been
made at the acquisition date when new information about facts and circumstances existing at the acquisition date is obtained.
The revised accounting standards are applied prospectively to business combinations for which the business combination
date is on or after the beginning of the fiscal year ended March 31, 2015.
YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201567

As a result of this change, as of March 31, 2015, capital surplus increased by ¥834 million ($6,942 thousand). In addition, theeffects of this change on operating income and income before income taxes and minority interests for the fiscal year ended
March 31, 2015, are immaterial. Net assets per share increased by ¥2.02 ($0.02).

4. BUSINESS COMBINATION
Transactions under common control(1) Outline of business combination

On September 1, 2014, the Company conducted a share exchange to make two consolidated subsidiaries wholly owned subsidiaries in order to further strengthen the Group management and construct a more effective consolidated management structure byaccelerating decision-making and increasing mobility and flexibility of the Group management.
Name and main business of the companies involved in the business combination
Combining entity (wholly owning parent company through share exchange)

Name:
Yamato Holdings Co., Ltd. (the “Company”)
Main business: Management control of Group companies and incidental operations thereof, on the basis of Group companies
share holdings
Combined entities (wholly owned subsidiaries through share exchange)

Name:
Yamato Global Express Co., Ltd. (“YGX”)
Main business: Domestic air cargo transport business
Name:
Yamato Global Logistics Japan Co., Ltd. (“YGL”)
Main business: International air cargo service, handling of marine cargo, import/export customs clearance services
Date of business combination

September 1, 2014 (effective date)
Legal form of business combination

Share exchange with the Company as a wholly owning parent company and YGX and YGL (“YGX & YGL”) as wholly owned subsidiaries(2) Outline of accounting treatment applied

The Company early applied ASBJ Statement No. 21, “Accounting Standard for Business Combinations,” and ASBJ GuidanceNo. 10, “Guidance on Accounting Standards for Business Combinations and Business Divestitures,” and accounted for the businesscombination as a transaction with non-controlling shareholders under common control.
(3) Additional acquisition of subsidiaries’ share
Acquisition cost

YGX
¥1,093 million ($ 9,097 thousand) Consideration: Common stock of the Company
YGL¥737 million ($ 6,132 thousand) Consideration: Common stock of the Company
Total acquisition cost ¥1,830 million ($15,229 thousand)

68

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Share exchange ratio, calculation method for exchange ratio and number of shares delivered
Share exchange ratio

Type of Stock: Common StockWholly owning parent company

Wholly owned subsidiary

The Company

YGX

YGL

1

41.297

5.621

Share exchange ratio
Calculation method for exchange ratio

The Company requested KPMG FAS Co., Ltd., a third-party institution that is independent from the Company and both YGX &YGL, to carry out the calculation of the share exchange ratios in order to ensure the fairness and validity of the calculation. KPMGFAS Co., Ltd. carried out the calculations of the share exchange ratios by using the average market share price method for calculating the Company’s stock value, taking into consideration the Company’s status as a listed company, and using the discounted
cash flow method for calculating YGX & YGL’s stock values, taking into consideration their status as unlisted companies. The
Company’s stock value was calculated based on the closing share price on the calculation base date (July 30, 2014) and the respective average closing price for the one-month period, three-month period and six-month period up to the calculation base date.
The Company conducted careful negotiation and discussion about the share exchange ratios with YGX & YGL, and decided theshare exchange ratios in reference to the result of the calculation by the third-party institution.
Number of shares delivered

896,425 shares
The Company applied treasury stock to the consideration of the share exchange and did not issue new stock.
(4) Change in equity related to transaction with non-controlling shareholders
Increase in capital surplus by transaction with non-controlling shareholders¥1,559 million ($12,972 thousand)Main reason for the change

The change was resulted from a difference between cost of additional acquisition of the subsidiaries’ shares and the decrease ofnon-controlling interest caused by the additional acquisition.

5. NOTES AND ACCOUNTS RECEIVABLE
Sales recorded on the installment basis were 0.3% of operating revenues in both 2015 and 2014.
Annual maturities of notes and accounts receivable—installment at March 31, 2015, and related amortization of deferred profit
on installment sales are as follows:
Millions of Yen
Receivables

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

Receivables

Deferred Profit on
Installment Sales

2016¥20,655¥2,199$171,885$18,2992017

10,482

1,544

87,22912,852

2018

5,906

966

49,146

8,035

2019

2,921

518

24,307

4,313

2020

1,421

276

11,8232,301

2021 and thereafter
Total

623

152

5,180

1,261

¥42,008¥5,655$349,570$47,061

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201569

6. INVENTORIESInventories at March 31, 2015 and 2014, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Merchandise

2015

2014

2015

¥ 722

¥ 780

$ 6,006

Work in process

512

235

4,265

Raw materials and supplies

2,102

2,222

17,489Total¥3,336¥3,237$27,760

7. MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2015 and 2014, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2014

2015

2015

Noncurrent:
Marketable equity securities¥33,017¥24,796$274,750

Nonmarketable equity securities

730

685

6,076

Other

96

96

804

¥33,843¥25,577$281,630

Total

Information regarding each category of the securities classified as available-for-sale at March 31, 2015 and 2014, was as follows:
Millions of Yen
2015
Cost

Unrealized Gains

Unrealized Losses¥19,261¥38

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥13,794¥33,017

Millions of Yen
2014
Cost

Unrealized Gains

Unrealized Losses¥12,038¥19

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥12,777¥24,796

Thousands of U.S. Dollars
2015
Cost

Unrealized Gains

Unrealized Losses$160,279$315

Fair Value

Securities classified as:
Available-for-sale: Equity securities$114,786$274,750

Information for available-for-sale securities, which were sold during the years ended March 31, 2015 and 2014, was as follows:
Millions of Yen
March 31, 2015

Proceeds

Realized Gains

Realized Losses

¥14

¥7

¥–

¥14

¥7

¥–

¥2

¥1

¥–

¥2

¥1

¥–

Available-for-sale:
Equity securities
Other
Total
March 31, 2014

Available-for-sale:
Equity securities
Other
Total

70

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Thousands of U.S. Dollars
March 31, 2015

Proceeds

Realized Gains

Realized Losses

$118

$58

$–

$118

$58

$–

Available-for-sale:
Equity securities
Other
Total

Loss on valuation of available-for-sale equity securities for the year ended March 31, 2014 was ¥3 million.

8. LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2015 and 2014. As a result, the Group
recognized an impairment loss of ¥1,792 million ($14,910 thousand) as other expense for the asset groups of Yamato (China)
Transport Co., Ltd. and ten other asset groups for the year ended March 31, 2015, and ¥217 million as other expense for the asset
groups of the Tomakomai Maintenance Factory of Yamato Autoworks Co., Ltd. and eleven other asset groups for the year ended
March 31, 2014, due to continuous operating losses of those units or significant declines in market prices. The carrying amountsof the relevant asset groups were written down to the recoverable amounts. In the case where 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. In the case where the recoverable amounts were measured at its value in use, the discountrates used for computation of present value of future cash flows were 5.65% to 6.15%.

9. BANK LOANS AND LONG-TERM DEBT
Short-term bank loans at March 31, 2015 and 2014, consisted of notes to banks and bank overdrafts. The weighted-average interest
rates applicable to the bank loans as of March 31, 2015 and 2014, were approximately 0.755% and 0.450%, respectively.
Long-term debt at March 31, 2015 and 2014, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2015

0.120% to 6.400% loans from banks due 2015 to 2019

2014

2015

¥100,554

0.150% to 6.900% loans from banks due 2014 to 2017

$ 836,763¥ 59,422

Lease obligations

7,389

9,165

61,494

Zero coupon convertible bonds due in March 2016

9,660

20,00080,387

Total

117,60388,587

978,644(29,071)(21,941)(241,920)¥ 88,532¥ 66,646$ 736,724

Millions of Yen

Thousands of
U.S. Dollars

2016¥ 29,071$241,920

2017

34,210284,6762018

42,868356,728

2019

10,91190,795

2020

441

3,674

2021 and thereafter

102

851

¥117,603$978,644

Less current portion
Total

Annual maturities of long-term debt at March 31, 2015, were as follows:Year Ending March 31

Total

The conversion price of the convertible bonds due in March 2016 was ¥1,850 per share at March 31, 2015. If all the outstanding
convertible bonds had been exercised at March 31, 2015, 5,221,621 shares of common stock would have been issued.
The conversion price of the convertible bonds is subject to adjustments to reflect stock splits and certain other events. Eachstock acquisition right may be exercised at any time during the period from March 22, 2011 to February 22, 2016.

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201571

10. 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 prior tothe mandatory retirement age.
(1) Defined Benefit Pension Plans
The changes in defined benefit obligation for the years ended March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2014

2015

Balance at beginning of year
Cumulative effects of changes in an accounting policy¥119,1362015¥112,493$ 991,394

6,312

52,527

Restated balance

125,448

112,493

1,043,921

Service cost

9,704

8,910

80,749Interest cost

1,098

1,443

9,135

Actuarial loss arising during the year

1,917

744

15,955Retirement benefits paid

(5,041)(4,458)(41,945)¥133,126¥119,136

Past service cost arising during the year
Balance at end of year4
$1,107,815

The changes in plan assets for the years ended March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

2015

2014

¥72,079¥64,927

Expected return on plan assets

2015$599,807

721

649

5,998

Actuarial gain arising during the year

5,269

4,516

43,848Contributions from the employer

4,137

3,881

34,431Retirement benefits paid
Balance at end of year

(1,848)(1,894)(15,377)¥80,358¥72,079$668,707

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation andplan assets as of March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2015

2014

Defined benefit obligation of funded plan

¥ 53,415¥ 50,035$ 444,494

Plan assets(80,358)(72,079)(668,707)(26,943)(22,044)(224,213)

79,711

69,101

663,321¥ 52,768¥ 47,057$ 439,108

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

2015

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

2015

2014

¥53,024¥47,224

(256)

(167)

(2,129)¥52,768¥47,057$439,1082015$441,237

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

72

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

The components of net periodic benefit costs for the years ended March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2015

2014

2015

Service cost

¥ 9,704¥ 8,910$80,749

Interest cost

1,098

1,443

9,135

Expected return on plan assets

(721)

(649)

(5,998)

Recognized actuarial loss

399

3,047

3,318

Past service cost

4

OthersNet periodic benefit costs

(13)

(6)

(102)

¥10,467¥12,749$87,102

Amount recognized in other comprehensive income (before income tax effect adjustments) in respect of defined retirement
benefit plans for the year ended March 31, 2015, was as follows:
Millions of Yen

Thousands of
U.S. Dollars

2015

2015

Actuarial gain and (loss)¥3,751$31,211

Total¥3,751$31,211Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect of defined
retirement benefit plans as of March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2015

2014

2015

Unrecognized actuarial gain and (loss)¥1,067¥(2,683)$8,881

Total¥1,067¥(2,683)$8,881

2015

2014

Plan assets as of March 31, 2015 and 2014, consisted of the following:
General accounts

31%

34%

Debt investments

24

26

Equity investments

24

21

Others

21

19

Total

100%

100%

Assumptions used for the years ended March 31, 2015 and 2014, were set forth as follows:
2015

2014

Discount rate

0.9%

1.3%

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, 2015 and 2014,
were ¥2,136 million ($17,775 thousand) and ¥2,089 million, respectively.

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201573

11. ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2015

2014

2015

¥4,789¥4,459$39,849

Additional provisions associated with the acquisition of property, plant and equipment

170

355

1,413

Reconciliation associated with passage of time

93

90

776

Balance at beginning of year

Reconciliation associated with changes in accounting estimates
Reduction associated with settlement of asset retirement obligations
OthersBalance at end of year

2

(1)

20

(80)

(110)

(670)

6

(4)

50

¥4,980¥4,789$41,438

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, which resulted from certain events such as obtaining new
information. A reconciliation has been prepared for the change, which resulted in an increase and decrease of the asset retirement obligation for the years ended March 31, 2015 and 2014, by ¥2 million ($20 thousand) and ¥1 million, respectively.

12. 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 is prescribedas one year rather than two years of normal 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 (noncash 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 capital surplus, and retained earnings can be transferred among the accounts under certain 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 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.

74

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

13. 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 35.6% and 38.0% for the years ended March 31, 2015 and 2014.
The tax effects of significant temporary differences, which resulted in deferred tax assets and liabilities at March 31, 2015 and2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2015

2014

¥ 9,711¥ 10,463$ 80,814

1,769

1,747

14,7162015

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

216

196

1,799

Legal welfare expense

1,818

1,660

15,130

Other

2,466

3,067

20,519Less valuation allowance
Deferred tax assets—current(273)¥ 15,980¥ 16,860$ 132,978Noncurrent:
Liability for employees’ retirement benefits¥ 17,728¥ 16,998$ 147,520

Investment securities

1,992

2,199

16,579Loss on devaluation of land

21,89824,163

182,228

Loss on impairment of long-lived assets

4,188

4,225

34,853

495

546

4,118

Unrealized profit

1,914

1,840

15,923

Other

10,693

10,76488,984

Loss on devaluation of telephone subscription rights

Less valuation allowance(33,122)(35,505)(275,630)

Deferred tax assets—noncurrent¥ 25,786¥ 25,230$ 214,575

Current—other

¥

(293)

¥

(312)

$

(2,436)

Deferred tax liabilities—current

¥

(293)

¥

(312)

$

(2,436)

Deferred tax liabilities:

Noncurrent:
Unrealized gain on available-for-sale securities
Other
Deferred tax liabilities—noncurrent
Deferred tax assets—net¥ (4,740)¥ (2,871)$ (39,443)(3,016)(2,480)(25,096)¥ (7,756)¥ (5,351)$ (64,539)¥ 33,717¥ 36,427$ 280,578

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201575

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, 2015, with the corresponding figures for 2014 is as follows:
2014

2015

Normal effective statutory tax rate

35.6%

38.0%

Per capita levy of local taxes

4.2

4.3

Valuation allowance

(0.2)

1.2

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

5.0

1.8

Other—net

1.0

1.8

Actual effective tax rate

45.6%

47.1%

On March 31, 2015, new tax reform laws were enacted in Japan, which changed the normal effective statutory tax rate from 35.6%
to 33.1%, effective for the fiscal year beginning on April 1, 2015 and to 32.3% for the fiscal year beginning on or after April 1, 2016.
The effects of the reform were to decrease deferred tax assets (after subtraction of deferred tax liabilities) in the consolidatedbalance sheet as of March 31, 2015, by ¥3,277 million ($27,271 thousand), of which ¥2,912 million ($24,236 thousand) is the effect of
the change in tax rates, and to increase income taxes—deferred in the consolidated statement of income for the year then endedby ¥3,753 million ($31,232 thousand), of which ¥3,388 million ($28,197 thousand) is the effect of the change in tax rates.

14. LEASES(1) Lessee
The Group leases certain machinery, computer equipment and other assets.
Future rental payments under noncancelable operating leases at March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2014

2015

2015

Due within one year

¥ 85

¥ 76

Due after one year

65

123

540

¥150

¥199

$1,247

Total

$ 707

(2) Lessor
The net investments in lease as of March 31, 2015 and 2014, are summarized as follows:
Thousands of
U.S. Dollars

Millions of Yen

Gross lease receivables

2015

2014

2015

¥44,580¥35,645

Unguaranteed residual values

4,207

2,948

35,007

Unearned interest income(3,839)(3,264)(31,943)¥44,948¥35,329$374,039

Investments in leases—current$370,975

Maturities of lease receivables for finance leases that are deemed not to transfer ownership of the leased property to the lessee asof March 31, 2015, are as follows:
Millions of Yen

Thousands of
U.S. Dollars

2016¥13,829$115,0782017

12,081

100,534

2018

9,662

80,400

2019

6,365

52,972

2020

2,331

19,398Year Ending March 31

2021 and thereafter
Total

76

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

312

2,593

¥44,580$370,975

The minimum rental commitments under noncancelable operating leases at March 31, 2015 and 2014, are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Due within one year

2015

2014

2015

¥2,812¥2,069$23,397

Due after one year

5,846

4,385

48,649Total¥8,658¥6,454$72,046

15. 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 maintains 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 rules, 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, 2015 and 2014, were as follows:
Millions of Yen
March 31, 2015

Carrying Amount

Cash and cash equivalents¥247,398

Trade notes and accounts receivable

187,834

Allowance for doubtful accounts

Difference¥247,398(122)
187,712Installment sales receivable

Fair Value

188,298

¥ 586

5,428

42,008

Allowance for doubtful accounts(802)

Deferred profit on installment sales(5,655)35,551

40,979Investment securities

33,01733,017

Trade notes and accounts payable

157,480

157,480

Short-term loans

34,44334,51572

Long-term loans

83,877

83,834(43)

Derivatives

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201577

Millions of Yen
March 31, 2014

Carrying Amount

Cash and cash equivalents¥220,148

Trade notes and accounts receivable

188,145

Allowance for doubtful accounts

Difference¥220,148(131)
188,014

Installment sales receivable

Fair Value

188,519

¥ 505

5,122

39,480Allowance for doubtful accounts(933)

Deferred profit on installment sales(5,349)33,19838,320Investment securities

24,796

24,796

Trade notes and accounts payable

172,463

172,463

Short-term loans

36,41236,49381

Long-term loans

42,26642,33468

Derivatives
Thousands of U.S. Dollars
March 31, 2015

Carrying Amount

Fair Value

Cash and cash equivalents$2,058,737$2,058,737

Trade notes and accounts receivable

1,563,066

Allowance for doubtful accounts(1,012)
1,562,054

Installment sales receivable
Allowance for doubtful accounts
Deferred profit on installment sales
Investment securities
Trade notes and accounts payable

Difference

1,566,931$ 4,877

295,835

341,01145,176

274,750

274,750

349,570(6,674)(47,061)

1,310,476

1,310,476

Short-term loans

286,626

287,215589

Long-term loans

697,979

697,630(349)

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 cash flows related to the receivables at the rate ofgovernment bonds.
Installment sales receivable

Allowances for doubtful accounts and deferred profit on installment sales are deducted from the fair values of installment salesreceivable, which are determined by discounting the cash flows related to the installment sales receivable at the 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 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 7.
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.

78

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Short-term loans and long-term loans

The fair values of short-term bank loans and long-term loans are determined by discounting the cash flows related to the 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-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 16.
(4) Financial Instruments Whose Fair Value Cannot Be Reliably Determined
Thousands of
U.S. Dollars

Millions of Yen

Investments in equity instruments that do not have a quoted market price inan active market

2015

2014

2015

¥1,551¥1,324$12,904(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen
March 31, 2015

Due in One Yearor Less

Due after One Yearthrough Five Years

Due after
Five Years

Cash and cash equivalents¥247,398

Trade notes and accounts receivable

174,738¥12,915

Installment sales receivable

20,655

20,730623¥442,791¥33,645

¥804

¥ 75

Total

¥181

March 31, 2014

Cash and cash equivalents¥220,148

Trade notes and accounts receivable

177,095¥10,975

Installment sales receivable

19,68819,154638¥416,931¥30,129

¥713

Total

Thousands of U.S. Dollars
March 31, 2015

Due in One Yearor Less

Cash and cash equivalents$2,058,737

Trade notes and accounts receivable

1,454,092$107,469

171,885

172,505

5,180$3,684,714$279,974$6,685

Installment sales receivable
Total

Due after One Yearthrough Five Years

Due after
Five Years$1,505

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201579

(6) Maturity Analysis for Long-term loans, Lease obligations and Convertible bonds
Millions of Yen
Long-term loans

Lease obligations

Zero coupon
convertible bonds

2016¥ 16,677¥2,734¥9,6602017

32,328

1,882

2018

41,549

1,319

2019

10,000911

Year Ending March 31

2020

441

2021 and thereafter

102

Total

¥100,554¥7,389¥9,660Thousands of U.S. Dollars
Long-term loans

Lease obligations

Zero coupon
convertible bonds

2016$138,784$22,749$80,387

2017

269,016

15,6602018

345,747

10,981

2019

83,216

7,579

Year Ending March 31

2020

3,674

2021 and thereafter

851

Total

$836,763$61,494$80,387

Please see Note 9 for annual maturities of long-term debt.

16. DERIVATIVES
Certain consolidated subsidiaries use derivative financial instruments to manage their exposure to fluctuations in interest rates.
Interest rate swaps are utilized by the consolidated subsidiaries to reduce interest rate risk. The consolidated subsidiaries do notenter 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¥38,582¥26,376*

Long-term bank loans¥44,050¥29,050*

March 31, 2015

Hedged Item

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

Fair Value

March 31, 2014

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

Thousands of U.S. Dollars
March 31, 2015

Hedged Item

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

Long-term bank loans* The fair value of interest rate swaps is included in that of hedged items (see Note 15).

80

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Contract AmountContract AmountDue after One Year

$321,062$219,489

Fair Value*17. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2015 and 2014, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2014

2015

2015

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

¥ 7,258¥3,784$ 60,399

(7)

(1)

(58)

Amount before income tax effect

7,251

3,783

60,341

Income tax effect(1,880)(845)(15,648)

Total¥ 5,371¥2,938$ 44,693¥¥1,408$ 6,878¥$ 27,893

Reclassification adjustments to profit or loss

Foreign currency translation adjustments:
Adjustments arising during the year

826

Remeasurements of defined employees’ retirement benefit plans:
Adjustments arising during the year

¥ 3,352

Reclassification adjustments to profit or loss
Amount before income tax effect

–

399

3,318

3,751

31,211

Income tax effect(1,308)

Total¥ 2,443¥–$ 20,328¥ 8,640¥4,346$ 71,899

Total other comprehensive income(10,883)

18. NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share (“EPS”) for the years ended March 31, 2015 and2014, is as follows:Year Ended March 31, 2015

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

Millions of Yen

Thousands ofSharesNet Income

Weighted-average
Shares¥37,533

U.S. Dollars
EPS¥90.41

$0.75

$0.73

5

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

415,131

Yen

10,187¥37,538

425,318¥88.26¥34,776

422,941¥82.22¥34,776

433,752

Year Ended March 31, 2014

Basic EPS—Net income available to common shareholders
Effect of dilutive securities—Convertible bonds
Diluted EPS—Net income for computation

10,811¥80.18YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201581

19. 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 Mail (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) 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.”

82

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

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

2015
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Segment revenues:
Segment revenues
from customers
Total segment revenues¥1,101,439
63,411¥1,164,850¥103,821
12,151¥115,972¥48,475
14,546¥63,021¥40,487
28,253¥68,740¥ 66,658
3,402¥ 70,060¥27,153
28,558¥55,711¥ 8,675
59,229¥67,904¥1,396,708
209,550¥1,606,258–(209,550)¥(209,550)¥1,396,708

Segment income

¥

¥

4,683
61,508¥ 613
20,242¥ 7,757
40,377¥ 8,918
239,044¥ 3,733
24,794¥24,144
12,849¥ 89,053
1,059,110¥ (20,106)
23,421¥ 68,947
1,082,531

Intersegment revenues

Segment assets

39,205660,296¥¥1,396,708

Other:
Depreciation and amortization

34,792

1,818

557

3,761

3,437

768

261

45,394664

46,058

Increase of tangible andintangible fixed assets

33,832

3,201

711

4,965

8,397

455

220

51,781

241

52,022Millions of Yen

2014
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Segment revenues:
Segment revenues
from customers¥ 90,255
12,462¥102,717¥48,723
14,154¥62,877¥40,831
27,104¥67,935¥ 62,728
3,568¥ 66,296¥25,650
28,067¥53,717¥ 7,023
60,664¥67,687¥1,374,610
207,114¥1,581,724¥

Total segment revenues¥1,099,400
61,095¥1,160,495–(207,114)¥(207,114)¥1,374,610

Segment income

¥

¥

3,404
54,551¥ 217
19,017¥ 8,057
38,635¥ 9,406
233,495¥ 3,272
23,412¥24,957
11,169¥ 85,097
1,013,706¥ (22,001)
18,428¥ 63,096
1,032,134

Intersegment revenues

Segment assets

35,784
633,427¥1,374,610

Other:
Depreciation and amortization

31,849

1,561

575

3,712

2,721

907

285

41,610656

42,266

Increase of tangible andintangible fixed assets

64,479

4,250

700

3,366

5,493

380

564

79,232299

79,531Thousands of U.S. Dollars

2015
Delivery

BIZ-Logistics

Home Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Segment revenues:
Segment revenues
from customers$9,165,671
527,683$9,693,354$863,953
101,111$965,064$403,387
121,047$524,434$336,912
235,109$572,021$ 554,699
28,304$ 583,003$225,959
237,647$463,606$ 72,190 $11,622,771
492,874
1,743,775$565,064 $13,366,546$$ 326,250
5,494,681$ 38,969
511,840$

5,102
168,443$ 64,549
336,004$

74,213
1,989,219$ 31,065
206,326$200,912 $ 741,060
106,921
8,813,434$ (167,313) $ 573,747
194,899
9,008,333

Depreciation and amortization

289,520

15,1304,636

31,30228,606

6,390

2,169

377,7535,524

383,277

Increase of tangible andintangible fixed assets

281,537

26,633

5,919

41,31969,876

3,785

1,826

430,895

2,010

432,905

Intersegment revenues
Total segment revenues
Segment income
Segment assets– $11,622,771(1,743,775)$(1,743,775) $11,622,771

Other:

Notes: Effective from the fiscal year ended March 31, 2015, the Delivery Business segment includes the contact service business, previously included in the e-Business, due tochanges involving business segment categories made in accordance with actual circumstances related to management and administration. The segment information for the
fiscal year ended March 31, 2014 has been prepared and presented according to the new classification.
“Other” includes JITBOX charter services, staffing services, and shared services.
Segment revenues and segment income of “Other” include dividends for the years ended March 31, 2015 and 2014, of ¥21,910 million ($182,328 thousand) and ¥24,105 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, 2015 and 2014, of ¥20,106 million ($167,313 thousand) and ¥22,001 million, respectively, are intersegment eliminations and others.
(2) Reconciliations of segment assets at March 31, 2015 and 2014, of ¥23,421 million ($194,899 thousand) and ¥18,428 million, respectively, include intersegment eliminations of assets and liabilities of ¥166,006 million ($1,381,424 thousand) and ¥143,010 million, and corporate assets which are not allocated to each reporting segmentsof ¥189,427 million ($1,576,323 thousand) and ¥161,438 million, respectively.
(3) Reconciliations of increases of tangible and intangible fixed assets at March 31, 2015 and 2014, of ¥241 million ($2,010 thousand) and ¥299 million, respectively, include
the Company’s capital investment.
Segment income is reconciled with the consolidated statement of income.
The ASBJ revised ASBJ Statement No. 26, “Accounting Standard for Retirement Benefits” in May 2012, and ASBJ Guidance No. 25, “Guidance on Accounting Standard for
Retirement Benefits” in March 2015. The accounting standard revised calculation methods for defined benefit obligation and service cost. The Company applied the revised
accounting standard effective from the beginning of the fiscal year ended March 31, 2015. In applying of the revised accounting standard, the Company reviewed the calculation method of retirement benefit obligations and service cost and amended the determination of discount rate from one that is based on the period of years approximate to
the expected average remaining working lives of employees to one that uses a single weighted average discount rate reflecting the estimated timing and amount of benefit
payment. The effect of this change on segment income for the fiscal year ended March 31, 2015 is immaterial.

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201583

[Related Information about Reporting Segments](1) Information about products and services
Operating revenues from customers for the years ended March 31, 2015 and 2014, are as follows:
Millions of Yen
2014

2015
TA-Q-BIN¥912,563

Kuroneko Mail

Other

¥111,885¥372,260

Total

TA-Q-BIN¥906,057¥1,396,708

Kuroneko Mail

Other

¥120,800¥347,753

Total¥1,374,610

Thousands of U.S. Dollars
2015
TA-Q-BIN$7,593,934

Kuroneko Mail

Other

$931,058

Total$3,097,779 $11,622,771(2) Information about geographical areas
Operating revenues for the years ended March 31, 2015 and 2014, are as follows:
Millions of Yen
2014

2015
Japan

¥1,368,793

North America

Other¥10,261¥17,654

Total

Japan

¥1,396,708¥1,349,718

North America

Other¥10,461¥14,431

Total¥1,374,610

Thousands of U.S. Dollars
2015
Japan

$11,390,474

North America

Other$85,390

Total$146,907 $11,622,771

Property, plant and equipment at March 31, 2015 and 2014, are as follows:
Millions of Yen
2014

2015
Japan

¥418,202

North America

Other

¥442

¥1,457

Total¥420,101

Thousands of U.S. Dollars
2015
Japan

$3,480,089

84

North America$3,677

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015

Other

$12,123

Total$3,495,889

Japan¥415,013

North America

¥386

Other

¥1,729

Total¥417,128

(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, 2015 and 2014, are as follows:
Millions of Yen

2015
Delivery

Loss on impairment oflong-lived assets¥1,404

BIZ-Logistics

Home
Convenience

¥91

¥297

e-Business

Financial

Autoworks

Other

Eliminations or
Corporate

Total¥1,792

Consolidated¥1,792Millions of Yen

2014
Delivery

BIZ-Logistics

Home
Convenience

e-Business

Financial

Autoworks

Loss on impairment oflong-lived assets

Other

¥217

Eliminations or
Corporate

Total

¥217

Consolidated¥217

Thousands of U.S. Dollars

2015
Delivery

Loss on impairment oflong-lived assets$11,682

BIZ-Logistics

Home
Convenience$755$2,473e-Business

Financial

Autoworks

Other

Eliminations or
Corporate

Total$14,910

Consolidated$14,910

20. SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2015, was approved at the Company’s Board of Directors meeting
held on May 14, 2015:

Year-end cash dividends, ¥13.00 ($0.11) per share

Millions of Yen

Thousands of
U.S. Dollars¥5,372$44,699

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 201585

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,
2015, 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, 2015, 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 10, 201586

YAMATO HOLDINGS CO., LTD. ANNUAL REPORT 2015