2011

Semiannual Report
For the six-month period ended September 30, 2010

TONAMI HOLDINGS CO., LTD.

Contents
1
4
6
7
8
12
13
13

A Message from the President
Unaudited Consolidated Balance Sheets
Unaudited Consolidated Statements of Operations
Unaudited Consolidated Statements of Cash Flows
Notes to the Unaudited Consolidated Financial Statements
Consolidated Subsidiaries
Board of Directors and Corporate Auditors
Corporate Data

Forward-Looking Statements
This report includes forward-looking statements that represent Tonami Group’s assumptions and expectations in light of currently available information.
These statements reflect industry trends, clients’ situations and other factors, and involve risks and uncertainties which may cause actual performance
results to differ from those discussed in the forward-looking statements in accordance with changes in the business environment.

A

M e s s a g e

f r o mt h e

P r e s i d e n t
In the distribution industry, although domestic freight
volumes are expected to decrease for the 11th
consecutive year, there were signs of recovery oftransport demand despite disparities among regions
and industry sectors. However, negative factors
persisted, such as decreases in freight charges and unit
rates owing to intensifying competition among
companies. Thus, the business environment remained
unpredictable.

Performance
I welcome this opportunity to report to ourshareholders on the operating environment andbusiness results for the six-month period ended
September 30, 2010.
During the first six-month period, the Japanese
economy shifted to a moderate recovery track as
production and corporate earnings picked up thanks
to the government’s economic stimulus package andincreasing exports to emerging economies. However,prospects for a self-sustaining recovery were
undermined by the slowdown of the world economy,
the appreciation of the yen to a 15-year high, andweak stock prices, as well as the fact that the economic
stimulus package has largely done what it is capable ofdoing.

In these circumstances, the Tonami Group expanded
the logistics-related business centering on truck
transport and freight forwarding. As a result, operating
revenues increased 5.7% or ¥3,155 million comparedwith the same period of the previous year to ¥58,317
million.

Unaudited Consolidated Financial Highlights
TONAMI HOLDINGS CO., LTD. AND CONSOLIDATED SUBSIDIARIES
Millions of yen

For the period:
Operating revenues . .......................................................................
Logistics .....................................................................................
Information processing ...............................................................
Sales ...........................................................................................
Others ........................................................................................
Operating income ..........................................................................
Net income (loss) ...........................................................................
Per share (yen and U.S. dollars):
Net income (loss), basic ..................................................................
Net income, diluted . ......................................................................
Cash dividends ...............................................................................
At period-end:
Total assets .....................................................................................
Total net assets . ..............................................................................
Notes:

Thousands of
U.S. dollars

Six months
ended
September 30,
2010

Six months
ended
September 30,
2009

Six months
ended
September 30,
2010¥ 58,317
53,859
1,239
2,852
367
393
48

¥ 55,162
50,817
1,379
—
2,966
171
(110)

$ 698,826
645,405
14,847
34,176
4,398
4,710
575

¥

0.54
—
2.00

¥ (1.21)
—
2.00

$

¥114,484
44,698¥110,159
44,545$1,371,887
535,626

0.0065—0.02401. U.S. dollar amounts presented in the unaudited financial statements are included solely for convenience and should not be construed as representations that Japanese yen amounts havebeen or could in the future be converted into U.S. dollars. The rate of ¥83.45 = U.S.$1, prevailing on September 30, 2010, has been used for the translation into U.S. dollar amounts inthe unaudited financial statements.
2. The computation of net income (loss) per share of common stock is based on the weighted average number of shares outstanding (which represents the number of issued shares lesstreasury stock.) during each period.
3. Effective from the first quarter of the fiscal year ending March 31, 2011, the Company revised its business segments. The result of the sales business for the previous year is notpresented because the Company made no reclassifications of business results for the previous year.

1Increased revenues contributed to profitability.
Despite negative factors, including decreases in freightcharges and unit rates and an increase in fuel costs,
operating income jumped 130.8% or ¥222 million
compared with the same period of the previous year to¥393 million as a result of the Group’s efforts to
reduce costs through more efficient deployment of theworkforce in line with the scale of revenues andimproved operational efficiency.

Kuki City in Saitama prefecture in view of theMetropolitan Inter-City Expressway construction
project. Construction of the new facility in Kuki isscheduled for completion within fiscal 2011 ending
March 31, 2011.

Full-Year Outlook
Turning to the outlook for the full year, the businessenvironment does not encourage optimism as low
growth of the Japanese economy is likely in view of
uncertain prospects owing to the slowing tempo of
economies overseas and the continuing strength of theyen.

As a result of recording of income taxes—deferredthrough the application of deferred tax accounting,net income was ¥48 million, an improvement of ¥158
million compared with the net loss recorded for thesame period of the previous year.
Regarding the results by business segment, operating
revenues from the logistics-related business, which
includes road haulage, third party logistics (3PL), andharbor transport amounted to ¥53,859 million. The
Group’s efforts to expand business with existingcustomers and cultivate new customers resulted in an
upturn in the logistics demand compared with thesame period of the previous year.

Although there is rising demand for transportation,reflecting buoyant foreign demand centering on
emerging economies and the recovery of the financial
performance of Japanese companies, the Group’sbusiness environment is expected to be challenging as
decreases in freight charges and unit rates owing tointensifying competition are likely to continue andrapid appreciation of the yen against the U.S. dollars
would adversely affect export freight.

Operating revenues from the information processing
business amounted to ¥1,239 million.

Operating revenues from other businesses, which
include automobile repair and direct mail service,amounted to ¥367 million.

In these circumstances, the Group reorganized its corecompany, Tonami Transportation, based on a regional
strategy in October 2010. This reorganization into
region-based operations, involving establishment of
two regional subsidiaries by separating operations
from Tonami Transportation, is in accordance with
one of our objectives, namely, “to develop into ahighly profitable company and raise our value withinsociety,” in the final year of its 18th three-year
medium-term business plan.

The principal item of capital expenditures is therelocation of the Okegawa Branch of Tonami
Transportation Co., Ltd., the Group’s core company.
The branch will be relocated from Okegawa City to

From now on, we intend to promote structuralreform, including expansion of the 3PL business. For
this purpose, we will work to fully capitalize on theadvantages of the establishment of region-based

Operating revenues from the sales business, which
includes merchandising, consignment sales, and anon-life insurance agency, amounted to ¥2,852
million.

2

operations and enhance our abilities to gather
customer information so as to strengthen the Group’s
comprehensive sales & marketing structure andabilities to precisely identify customer needs andrespond to them.

By working to achieve these objectives, we will
facilitate business reorganization and strengthen groupmanagement capabilities and cost competitiveness inorder to create greater value in our logistics businesses
and fulfill our corporate social responsibility.

At the same time, we intend to strengthen thefundamentals of our business through reorganizationof Group companies involving selection and focus incurrent operation, alliances, and M&A, so as toincrease enterprise value.

Eyeing possibilities of M&A and business
partnerships, we are endeavoring to become a highly
profitable concern that delivers high added value
through expansion of the 3PL business, so as toincrease the Group’s enterprise value. In theseendeavors, we adhere to our fundamental policy ofproviding our customers with high-quality services
that are highly valued and inspire their trust in the
Tonami Group.

For the full year ending March 31, 2011, we forecast
operating revenues of ¥117,100 million, an increase of
3.1% year on year, operating income of ¥1,070
million, an increase of 45.8%, and net income of¥540 million, a decrease of 23.0%.

The Tonami Group’s quantitative targets for the final
year (the year ending March 31, 2011) of themedium-term business plan are: consolidated
operating revenues of ¥113,300 million, operating
income of ¥1,300 million (operating income ratio of
1.1%), and net income of ¥600 million.

Issues to be Addressed
The Company is promoting initiatives in the final yearof its 18th three-year medium-term business plan
launched in April 2008 under the slogan “Running
start to jump to the new stage—Challenging issues toreform—Growing into a genuine integrated logistics
provider.” Our key objectives under the plan are as
follows:

We plan to pay annual dividends of ¥4.0 per share forthe fiscal year ending March 31, 2011, including aninterim dividend of ¥2.0 per share.
We request your continued support for our endeavors.

(1) Develop into a highly profitable company, andraise our value within society(2) Extend 3PL business and develop overseas business(3) Realize quality that is highly valued and trusted byour customers(4) Take steps to increase our activities in regard to theenvironment(5) Improve the workplace to ensure that ouremployees can find their work rewarding, take pride in
their work and experience satisfaction through theirwork.

December 2010

Katsusuke Watanuki
President and Representative Director

3Unaudited Consolidated Balance Sheets

TONAMI HOLDINGS CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Millions of yen
September 30,
March 31,
2010
2010

Thousands of
U.S. dollars(Note 1)
September 30,
2010¥ 8,960¥ 10,511$ 107,370

19,815

19,714

237,448

ASSETS
Current assets:
Cash and time deposits ........................................................................
Trade receivables:
Notes and accounts .........................................................................
Less: allowance for doubtful accounts . ...........................................

(26)

(32)

(312)

Inventories (Note 3) . ...........................................................................

937

609

11,228Deferred tax assets . ..............................................................................

547

671

6,555

Other current assets .............................................................................

2,429

2,387

29,107

Total current assets . ...............................................................

32,66233,860391,396

Property and equipment:
Land ....................................................................................................

40,39740,397

484,086

Buildings and structures .......................................................................

20,351

20,871

243,871

Machinery and vehicles ........................................................................

2,298

2,257

27,537

Other ...................................................................................................

7,302

5,922

87,501

Total property and equipment ...............................................

70,34869,447

842,995

Investments in securities (Note 5) ........................................................

5,032

5,718

60,300

Deferred tax assets . ..............................................................................

908

749

10,881

Investments and other assets:

Goodwill ..............................................................................................

249

—

2,984

Other ...................................................................................................

5,285

5,728

63,331

Total investments and other assets . ........................................

11,474

12,195

137,496

Total assets . ...........................................................................

¥114,484¥115,502$1,371,887

The accompanying Notes are an integral part of these statements.

4

LIABILITIESCurrent liabilities:
Short-term bank loans (Note 2) ...........................................................
Current portion of long-term debt (Note 2) . .......................................
Trade notes and accounts payable ........................................................
Income taxes payable . ..........................................................................
Other current liabilities ........................................................................
Total current liabilities ...........................................................
Long-term liabilities:
Long-term debt, less current portion (Note 2) .....................................
Deferred tax liabilities from revaluation reserve for land .......................
Employees’ severance and retirement benefits ......................................
Retirement benefits for directors and corporate auditors ......................
Negative goodwill ................................................................................
Other long-term liabilities . ..................................................................
Total long-term liabilities .......................................................
Total liabilities .......................................................................

Millions of yen
September 30,
March 31,
2010
2010

Thousands of
U.S. dollars(Note 1)
September 30,
2010¥ 14,180
937
10,097344
7,066
32,624¥ 14,023
1,108
9,811
497
7,178
32,617$ 169,922
11,228120,995
4,122
84,673
390,940

9,795
5,455
15,106
184
346
6,276
37,162
69,786

10,336
5,455
15,306
190
385
5,984
37,65670,273

117,376
65,368181,019
2,205
4,146
75,207445,321836,261

NET ASSETS
Shareholders’ equity:
Common stock:
Authorised: 299,200,000 shares at September 30, 2010
299,200,000 shares at March 31, 2010
Issued: 97,610,118 shares at September 30, 2010
97,610,118 shares at March 31, 2010 ................................
Capital surplus .....................................................................................
Retained earnings . ...............................................................................
Treasury stock, at cost: 6,829,661 shares at September 30, 2010 and
6,822,582 shares at March 31, 2010 . ..............
Total shareholders’ equity ......................................................

14,183
11,682
14,601

14,183
11,682
14,734

169,958
139,988
174,967(2,013)38,453(2,012)
38,587(24,122)460,791

Valuation and translation adjustments:
Unrealized gain on securities ................................................................
Revaluation reserve for land .................................................................
Total valuation and translation adjustments ...........................

105
5,787
5,892

480
5,787
6,267

1,258
69,34770,605

Minority interest:
Minority interest ..................................................................................
Total net assets .......................................................................
Total liabilities and net assets .................................................

353
44,698¥114,484

375
45,229¥115,502

4,230
535,626$1,371,887

5Unaudited Consolidated Statements of Operations
TONAMI HOLDINGS CO., LTD. AND CONSOLIDATED SUBSIDIARIESFor the six months ended September 30, 2010 and 2009

2009

Thousands of
U.S. dollars(Note 1)
2010

¥58,317¥55,162$698,826

58,31755,162

698,826

Operating cost .....................................................................................

54,76951,771

656,309

Selling, general and administrative expenses .........................................

3,155

3,220

37,80757,92454,991

694,116

393

171

4,710

Interest and dividend income ...............................................................

146

136

1,750

Equity in earnings of affiliates ..............................................................

24

18

287

Loss on sells of property and equipment, net . ......................................

(46)

(62)

(551)

Interest expenses ..................................................................................

(251)

(166)

(3,008)Other, net ...........................................................................................

225

294

2,696

98

220

1,174

491

391

5,884

Current ................................................................................................

248

266

2,972

Deferred . .............................................................................................

198

233

2,373

446

499

5,345

Income before minority interests ............................................................

45

—

539

Minority interests ....................................................................................

(3)

2

(36)

48

¥ (110)

Millions of yen
2010

Operating revenues:
Operating revenues ..............................................................................
Operating costs and selling, general and administrative expenses:

Operating income
Other income and expenses:

Income before income taxes and minority interests ...............................
Income taxes:

Net income (loss) . ...................................................................................

The accompanying Notes are an integral part of these statements.

6

¥

$

575

Unaudited Consolidated Statements of Cash FlowsTONAMI HOLDINGS CO., LTD. AND CONSOLIDATED SUBSIDIARIESFor the six months ended September 30, 2010 and 2009

Cash flows from operating activities:
Income before income taxes and minority interests . ...........................................
Depreciation and amortization ...........................................................................
Loss on disposal of property and equipment .......................................................
Loss on sales of investments in securities . ...........................................................
Loss on devaluation of investments in securities . ................................................
Loss on devaluation of golf club memberships ....................................................
Amortization of goodwill . ..................................................................................
Equity in earnings of affiliates . ...........................................................................
Decrease in allowance for doubtful accounts . .....................................................
Decrease in employees’ severance and retirement benefits ...................................
Decrease in retirement benefits for directors and corporate auditors ........................
Decrease in accrued bonuses to employees ..........................................................
Interest and dividend income .............................................................................
Interest expenses .................................................................................................
(Increase) decrease in trade receivables ................................................................
Increase in inventories ........................................................................................
Increase (decrease) in accounts payable ...............................................................
(Decrease) increase in accrued consumption taxes . .............................................
Other, net . .........................................................................................................
Subtotal ........................................................................................................
Interest and dividends received ...........................................................................
Interest paid .......................................................................................................
Income taxes paid ...............................................................................................
Net cash provided by operating activities ...................................................
Cash flows from investing activities:
Purchase of time deposits . ..................................................................................
Proceeds from redemption of time deposits ........................................................
Purchase of property and equipment ..................................................................
Proceeds from sales of property and equipment ..................................................
Purchase of investments in securities . .................................................................
Proceeds from sales of investments in securities ..................................................
Proceeds from redemption of investments in securities .......................................
Purchase of investments in subsidiaries ...............................................................
Payments for sales of investments in subsidiaries resulting in changes in scope of consolidation ....
Investments in loans receivable ...........................................................................
Proceeds from collection of loans receivable . ......................................................
Other, net . .........................................................................................................
Net cash used in investing activities ...........................................................

Millions of yen
2010

2009

491
1,673
46
25
30
2
14
(24)
(2)
(199)
(6)
(13)
(146)
251
(101)
(328)
286
(140)
(25)
1,834
146
(289)
(333)
1,358

¥ 391
1,531
62
11

(24)
32
(1,677)
39
(28)
77

(19)
12
(1,301)
34
(9)

(23)

—
(35)

¥

—
—

—
—

67
(18)
(33)
(321)
(31)
(37)
(136)
166
1,517
(241)
(1,108)
344
(242)
1,922
137
(208)
(184)
1,667

—

50

(288)
383
(20,096)
467
(336)
923
—

(276)
—

(216)
246
(95)
(1,333)

(359)
36
84
(19,462)157
309(1,021)

1,881
3,703
(12,235)(12)(2,181)(36)(6,447)(15,327)(18,516)
124,146$105,630

(1)
(182)
(3)
(538)
(1,279)675
2,500(1,200)(2,500)
(3)
(182)
(1)
(519)
(1,230)Net decrease in cash and cash equivalents .............................................................
Cash and cash equivalents at beginning of period ................................................
Cash and cash equivalents at end of period (Note 4) ...........................................

(1,545)
10,360¥ 8,815(896)
11,476¥10,5807$ 5,884
20,048
551
300
359
24
168
(288)
(24)
(2,385)(72)(156)(1,750)3,008(1,210)(3,930)3,427(1,678)(300)
21,976
1,750(3,463)(3,990)16,273(30)
37(1,624)

Cash flows from financing activities:
Net increase in short-term loans .........................................................................
Proceeds from long-term debt . ...........................................................................
Repayment of long-term debt .............................................................................
Redemption of bonds .........................................................................................
Purchase of treasury stock ...................................................................................
Dividends paid ...................................................................................................
Dividends paid to minority interests . .................................................................
Other, net . .........................................................................................................
Net cash used in financing activities ..........................................................

The accompanying Notes are an integral part of these statements.

Thousands of
U.S. dollars(Note 1)
2010

—

—

Notes to the Unaudited Consolidated Financial Statements
TONAMI HOLDINGS CO., LTD. AND CONSOLIDATED SUBSIDIARIES

1.

Basis of presenting financial statements

The accompanying unaudited consolidated financial statements have been prepared based on the accounts maintained by Tonami Holdings Co.,
Ltd. (the “Company”) and consolidated subsidiaries in accordance with accounting principles generally accepted in Japan, which differ in certain
respects as to the application and disclosure requirements of International Financial Reporting Standards.
In preparing these unaudited consolidated financial statements, certain reclassifications and rearrangements have been made to theCompany’s consolidated financial statements issued domestically in order to present them in a format which is more familiar to readers outside
Japan.
U.S. dollar amounts presented in the unaudited financial statements are included solely for convenience and should not be construed as
representations that Japanese yen amounts have been or could in the future be converted into U.S. dollars. The rate of ¥83.45 = U.S.$1, prevailingon September 30, 2010, has been used for the translation into U.S. dollar amounts in the unaudited financial statements.
Scope of consolidation and application of the equity method
The accompanying consolidated financial statements as of September 30, 2010 include the accounts of the Company and its 30 (30 for the year
ended March 31, 2010) consolidated subsidiaries and 6 (6 for the year ended March 31, 2010) affiliates accounted for by the equity method.
Under the control or influence concept, 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 Company has the ability to exercise significant influence are accounted for by
the equity method. A subsidiary which is considered to be insignificant as a whole in view of total assets, operating revenues, net income andretained earnings is excluded from the scope of consolidation, nor accounted for by the equity method.
Change in Accounting Policy(Application of the “Accounting Standard for Asset Retirement Obligations”)
Effective from the first quarter of the fiscal year ending March 31, 2011, the Company adopted ASBJ Statement No. 18 “Accounting Standard for
Asset Retirement Obligations” issued by the ASBJ in March 2008. Accordingly, when corporate or similar obligation with regard to the removal of
tangible fixed assets is incurred by acquisition, construction, development or ordinary use of tangible fixed assets, the Company recognizes such an
asset retirement obligation as a liability.
The impact of this change on operating income, and net income for the first six-month period of the fiscal year ending March 31, 2011, isnegligible.
(Application of the “Accounting Standards for Business Combinations and Related Matters”)
Effective from the first quarter of the fiscal year ending March 31, 2011, the Company adopted ASBJ Statement No. 21 “Accounting Standard forBusiness Combinations,” ASBJ Statement No. 22 “Accounting Standard for Consolidated Financial Statements,” ASBJ Statement No. 23 “Partial
Amendments to Accounting Standard for Research and Development Costs”, ASBJ Statement No. 7 “Revised Accounting Standard for Business
Divestitures,” and ASBJ Statement No. 16 “Revised Accounting Standard for Equity Method of Accounting for Investments” issued by the ASBJ
in December 2008.
Change in the Method of Presentation
The Cabinet Office Ordinance No. 5 (March 2009) for partial amendment of the regulations concerning financial statements came into force inaccordance with the ASBJ Statement No. 22 “Accounting Standard for Consolidated Financial Statements” issued by the ASBJ in December 2008.
Accordingly, “income before minority interests” is presented in the unaudited consolidated statements of operations.
Simplified accounting treatment(Method of calculating depreciation of fixed assets)
For assets depreciated using the declining-balance method, depreciation expenses for the fiscal year are calculated on a pro-rata basis.

2.	Short-term bank loans and long-term debt(a) Short-term bank loans

0.60%-2.55% bank loans:
Secured .........................................................................................................................
Unsecured .....................................................................................................................

8

Millions of yen
September 30,
March 31,
2010
2010

Thousands of
U.S. dollars
September 30,
2010¥ 3,453
10,570$ 39,185
130,737¥ 3,270
10,910(b) Long-term debt

2.11% ¥3.0 billion unsecured straight bonds due 2013 . .................................................
0.625%–2.65% loans from financial institutions due 2011 to 2015 and thereafter
Secured .....................................................................................................................
Unsecured . ...............................................................................................................
Total . .................................................................................................................
Less: amount due within one year ...................................................................................

Millions of yen
September 30,
March 31,2010
2010
¥ 3,000¥ 3,000Thousands of
U.S. dollars
September 30,
2010$ 35,950

1,675
6,769
11,444
1,108¥10,336

14,50078,155
128,605
11,228$117,377

1,210
6,522
10,732937¥ 9,795

The maturity of the ¥3.0 billion 2.11% unsecured straight bonds, issued in June 2008, is June 5, 2013.

3.

Inventories

4.

Cash flow statements

Inventories as at September 30, 2010 consisted of merchandise of ¥536 million ($6,423 thousand), raw materials and supplies of ¥173 million($2,073 thousand), and work in process of 288 million ($2,732 thousand).

Reconciliation of cash and time deposits shown in the unaudited consolidated balance sheets and cash and cash equivalents shown in theunaudited consolidated statements of cash flows as at September 30, 2010 and 2009 is as follows:—
Millions of yen

Cash and time deposits ...................................................................................................
Time deposits with maturities exceeding three months . ..................................................
Cash and cash equivalents ...............................................................................................

5.

Securities

2010¥8,960(145)¥8,815

2009¥10,608(28)¥10,580

Thousands of
U.S. dollars
2010$107,370(1,740)$105,630

There has been little change in the amounts of securities recorded on the unaudited consolidated balance sheets and other amounts compared withthose at the end of the previous fiscal year.

96. Amounts per share(a) Net assets per share
Yen

Net assets per share .........................................................................................................

March 31,2010
¥494.05

U.S. dollars
September 30,
2010$ 5.8536

Millions of yen
September 30,
March 31,2010
2010
¥44,698¥45,229

Thousands of
U.S. dollars
September 30,
2010$535,626

44,854375

531,396
4,230

September 30,
2010¥488.48

Basis for the calculation of net assets per share was as follows:—

Total net assets as reported on the unaudited consolidated balance sheets . ......................
Deduction:
Adjusted net assets allocated in common stock ................................................................
Minority interests . .......................................................................................................
Number of shares of common stock issued . ....................................................................
Number of shares of common stock in treasury . .............................................................
Number of shares of common stock outstanding at the end ofyear on which net assets per share is calculated .............................................................

44,345353
Shares97,610,118
6,829,661

97,610,118
6,822,582

90,780,457

90,787,536(b) Net income (loss) per share
Yen

Six months
ended

Net income (loss) per share:
Basic .............................................................................................................................
Diluted .........................................................................................................................
Cash dividends . ..............................................................................................................

U.S. dollars

Six months
ended

Six months
ended

September 30,
2010

September 30,
2009

September 30,
2010

¥0.54
—
¥2.00

¥(1.21)—¥ 2.00¥0.0065—¥0.0240

Diluted net income per share for the six months ended September 30, 2010, is not presented since there were no outstanding potentiallydilutive securities for the period.
Although there were dilutive securities, diluted net income per share for the six months ended September 30, 2009, is not presented because
net loss was recorded for the period.
Basis for the calculation of basic and diluted net income (loss) per share for the six months ended September 30, 2010 and 2009 was as follows:—
Millions of yen

Six months
ended

Net income (loss) available to shareholders of common stock:
Net income (loss) ..........................................................................................................
Net income (loss) not available to shareholders of common stock .................................
Net income (loss) available to shareholders of common stock . ......................................
Weighted-average number of shares of common stock outstanding (shares) . .................
Diluted net income available to shareholders of common stock:
Adjustments to net income ...........................................................................................
Incremental number of shares of common stock ...........................................................
(of which stock acquisition rights) . ............................................................................

Common stock equivalents not included in calculation of diluted net
income per share due to their non-dilutive effect7.

Six months
ended

Thousands of
U.S. dollars

Six months
ended

September 30,
2010

September 30,
2009

September 30,
2010

¥48
—
48
90,784,472¥(110)—(110)
90,801,001

$575
—
575

¥—
—
(—)
—

¥—
—
(—)
—

$—
—
(—)
—

Subsequent event

At a meeting held on November 12, 2010, the board of directors of the Company resolved the following interim cash dividends:—
Dividends (¥2.00 per share) ............................................................................................

10

Millions of yen¥181

Thousands of
U.S. dollars$2,169

8.

Segment information

Effective from the first quarter of the fiscal year ending March 31, 2011, the Company adopted the revised “Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information” issued by the ASBJ in March 2009.
Accordingly, the Company’s segmentation after the revision differs from that before the revision. Thus, below, the segment information forthe six months ended September 30, 2009, is presented according to the segmentation before the revision and the segmentation for the six months
ended September 30, 2010, is presented according to the segmentation after the revision.

(a) For the six-month ended September 30, 2009

The Company’s business segments consist of logistics related services classified as Logistics, information processing operations classified as
Information processing, and other services classified as Others.
A summary of segment information by business segment for the six months ended September 30, 2009 was as follows:—
Logistics
Net Sales:
Outside customers ................................................................
Inter segment sales ................................................................
Total ..............................................................................
Costs and expenses ......................................................................
Operating income (loss) ..............................................................

Information
processing¥50,81753
50,87051,070¥ (200)¥1,379
125
1,504
1,307
¥ 197

Millions of yen
OthersTotal¥2,966
2,791
5,757
5,911
¥ (154)

Eliminations Consolidated¥55,162
2,969
58,13158,288¥ (157)¥ —(2,969)(2,969)(3,297)¥ 328¥55,162—
55,162
54,991¥ 171(b) For the six-month ended September 30, 2010i) Overview of reportable segments
The Company’s segments are the Group’s components for which discrete financial information is available and whose operating results are regularly
reviewed by the Company’s board of directors to make decisions on the allocation of resources to the segments and to assess their performance.
The Group, in doing business, classifies business models of operating companies, which are under the Company (pure holding company),according to the nature of services and formulates comprehensive strategies for individual business models.
Therefore, the Group consists of segments according to services based on these business models and the Group’s reportable segments are:
Logistics, Information Processing, and Sales.
Principal services of the Logistics segment are road haulage, freight forwarding, warehousing, and harbor transport. The principal service of
the Information Processing segment is information processing. Principal services of the Sales segment are merchandising, consignment sales, and anon-life insurance agency.
ii) Information about operating revenues and income/loss in reportable segments
Millions of yen
Logistics
Operating revenues:
Outside customers ................................................................
Inter segment sales ................................................................
Total ..............................................................................
Segment income . ........................................................................

Reportable segments
Information
Sales
processing¥53,860
4
53,864¥ 36¥1,23999
1,338¥ 153¥2,852
2,639
5,491
¥ 95

Subtotal¥57,951
2,742
60,693¥ 284

Others
*1
¥367
409
776
¥ 65

Total

¥58,3173,152
61,469¥ 349Eliminations Consolidated
*2
*3
¥ —
(3,152)(3,152)¥ 44¥58,317—58,317¥ 393Thousands of U.S. dollars

Operating revenues:
Outside customers ................................................................
Inter segment sales ................................................................
Total ..............................................................................
Segment income . ........................................................................

Logistics

Reportable segments
Information
Sales
processing

Subtotal

Others*1

Total$645,416
48
645,464$ 431$14,847
1,186
16,033$ 1,833$694,440
32,858727,298$ 3,404$4,3984,901
9,299$ 779$698,826
37,771
736,597$ 4,183$34,176
31,62465,800$ 1,139

Eliminations Consolidated
*2
*3
$ —
(37,771)(37,771)$ 527$698,826—
698,826$ 4,710*1. “Others” corresponds to operating segments that are not included in the reported operating segments and includes automobile repair and direct mail service.
*2. The eliminations of segment income amounting to ¥44 million (US$527 thousand) correspond to intersegment eliminations of ¥385 million (US$4,613
thousand) and corporate expenses of ¥341 million (US$4,086 thousand) that are not allocated to any specific reportable segments. Corporate expenses aremainly expenses of the Company, which is independent of the reported segments.
*3. Segment income is adjusted to operating income in the quarterly consolidated statement of operations.

11Consolidated Subsidiaries

Logistics
Company NameBusiness Line

Tonami Transportation Co., Ltd.

Road haulage

Tonami Transportation Shinetsu Co., Ltd.

Road haulage

Tonami Transportation Chugoku Co., Ltd.

Road haulage

Kanto Tonami Transportation Co., Ltd.

Road haulage

Gosei Tonami Transportation Co., Ltd.

Road haulage

Tonami Shutoken Logistics Co., Ltd.

Road haulage

Osaka Tonami Transportation Co., Ltd.

Road haulage

Zento Transportation Co., Ltd.

Road haulage

Ishikawa Tonami Transportation Co., Ltd.

Road haulage

Ibaraki Tonami Transportation Co., Ltd.

Road haulage

Kansai Tonami Transportation Co., Ltd.

Road haulage

Chukyo Tonami Transportation Co., Ltd.

Road haulage

Fukui Tonami Transportation Co., Ltd.

Road haulage

Niigata Tonami Transportation Co., Ltd.

Road haulage

Saitama Tonami Transportation Co., Ltd.

Road haulage

Kawai Transportation Co., Ltd.

Road haulage

ATS Co., Ltd.

Road haulage

Takefu Transportation Co., Ltd.

Road haulage

Anan Transportation Co., Ltd.

Road haulage

Nationwide Shirobo JSE Courier Co., Ltd.

Road haulage

Tonami Global Logistics Co., Ltd.

Harbor transport service

Keishin Warehouse Co., Ltd.

Warehousing

Non-logistics
Company NameBusiness Line

Tonami Trading Co., Ltd.

Trading Company

Toyo Gomu Hokuriku Hanbai Co., Ltd.

Sale of tires

Keishin System Research Co., Ltd.

Development and sale of software

Tonami Staff Support Co., Ltd.

Detached service

Tonami Business Service Co., Ltd.

Financial service

Toyo Tire Toyama shop Co., Ltd.

Sale of tires

Tonami Automobile Technology Research Institute Co., Ltd.

Automobile technology R&D

12

Board of Directors and Corporate
Auditors

Corporate Data

Chairman and Representative Director

Head Office

Yoshihiro Minami

2-12, Showa-machi 3-chome, Takaoka,
Toyama Prefecture 933-8788, Japan
Phone: (0766) 32-1073
Fax: (0766) 32-1077

President and Representative Director
Katsusuke Watanuki

Tokyo Headquarters

Senior Managing Director

3-8, Higashinihonbashi 3-chome, Chuo-ku,
Tokyo 103-0004, Japan
Phone: (03) 3664-5403
Fax: (03) 3664-5405

Kohichi Kishida

Directors
Shigeki Sakamoto
Yasuo Terabayashi
Shigeyuki Okada
Yoshimi Nagahara
Kazuo Takata

Date of Establishment
June 1943

Common Stock¥14,183 million

Issued and Outstanding SharesStanding Corporate Auditors

97,610,118 shares

Mitsuo Matsuda
Masafumi Takebe

Shareholders
7,233

Corporate Auditors

Employees

Shinichiro Inushima
Toshio Yaeda
Yohji Ishiguro

58(As of September 30, 2010)(As of September 30, 2010)13

TONAMI HOLDINGS CO., LTD.
URL:http://www.tonamiholdings.co.jp/