Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2026[PDF: 602KB]

July 30, 2025

Company name: Yamato Holdings Co., Ltd.

Listing: Tokyo Stock Exchange

Stock code: 9064

URL: https://www.yamato-hd.co.jp/

Representative: Yutaka Nagao, Executive Officer and President

Contact: Masaru Nomura, Senior Managing Executive Officer and CFO Tel: +81-3-3541-4141 (from overseas)

Scheduled date to commence dividend payments: －

Preparation of supplementary materials on financial results: Yes

Holding of financial results meeting: Yes

(Amounts less than 1 million yen are discarded)

1. Consolidated financial results for the first three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

   1. Consolidated operating results

      (Percentages represent year-on-year changes)

      	Operating revenue		Operating profit		Ordinary profit		Profit attributable to owners of parent
      For the first three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	437,352	7.8	(6,494)	–	(6,656)	–	(5,424)	–
      June 30, 2024	405,632	(3.5)	(14,204)	–	(14,875)	–	(10,112)	–

      (Note) Comprehensive income: For the first three months ended June 30, 2025: (7,101) million yen (−%)

      For the first three months ended June 30, 2024: (4,510) million yen (−%)

      	Basic earnings per share	Diluted earnings per share
      For the first three months ended	Yen	Yen
      June 30, 2025	(17.01)	—
      June 30, 2024	(29.49)	—

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio
      As of	Millions of yen	Millions of yen	%
      June 30, 2025	1,239,746	566,612	44.8
      March 31, 2025	1,267,428	600,350	46.5

      (Reference) Equity: As of June 30, 2025: 555,696 million yen As of March 31, 2025: 589,259 million yen

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended/ending	Yen	Yen	Yen	Yen	Yen
   March 31, 2025	—	23.00	—	23.00	46.00
   March 31, 2026	—
   March 31, 2026 (Forecast)		23.00	—	23.00	46.00

   (Note) Revisions to the forecasts most recently announced: None

3. Consolidated earnings forecast for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31,

(Percentages represent year-on-year changes)

(Note) Revisions to the forecasts most recently announced: None

1. Significant changes in the scope of consolidation during the period: Yes Newly included: None

   Excluded: 1 company (Yamato Investment (Hong Kong) Ltd.)

   (Note) For details, please refer to page 15 of the attached materials, “2. Consolidated Financial Statements and Significant Notes Thereto – (4) Notes on Quarterly Consolidated Financial Statements (Change in scope of consolidation or scope of application of equity method).”

2. Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: Yes (Note) For details, please refer to page 15 of the attached materials, “2. Consolidated Financial Statements and Significant Notes Thereto – (4) Notes on Quarterly Consolidated Financial Statements (Significant matters forming the basis of preparing the

   consolidated financial statements).”

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares as of the end of the period (including treasury shares)

      As of June 30, 2025:	360,496,492 shares
      As of March 31, 2025:	360,496,492 shares

   2. Number of treasury shares as of the end of the period

      As of June 30, 2025:	43,822,229 shares
      As of March 31, 2025:	34,311,351 shares

   3. Average number of shares during the period (cumulative from the beginning of the fiscal year)

• Review of attached consolidated financial statements conducted by certified public accountants or an audit firm: Yes (voluntary)

• Proper use of earnings forecasts and other noteworthy events

• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For points to note when using such assumptions and financial projections, please see “1. Overview of Operating Results and Others,

  1. Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements” on page 9 of the attached materials.

• The Company plans to post supplementary materials on financial results on the Company’s website promptly after the announcement of the financial results.

  Attached Materials Index

  1. Overview of Operating Results and Others 2

     1. Summary of Operating Results 2

     2. Explanation of Financial Position 8

     3. Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements 9

  2. Consolidated Financial Statements and Significant Notes Thereto 10

     1. Consolidated Balance Sheet 10

     2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 12

        Consolidated Statement of Income (Cumulative) 12

        Consolidated Statement of Comprehensive Income (Cumulative) 13

     3. Consolidated Statement of Cash Flows 14

     4. Notes to Quarterly Consolidated Financial Statements 15

        (Notes to premise of going concern) 15

        (Note on significant changes in the amount of shareholders’ equity) 15

        (Change in scope of consolidation or scope of application of equity method) 15

        (Significant matters forming the basis of preparing the consolidated financial statements) 15

        (Segment information, etc.) 16

  3. Supplementary Information 17

Operating Revenue by Segment 17

1. ‌Overview of Operating Results and Others
   1. ‌Summary of Operating Results

      During the first three months ended June 30, 2025, although there were signs of a moderate improvement in overall business sentiment, consumer spending has yet to see a full-fledged recovery due to continued inflation and a decline in real wages. The business environment remains challenging, with labor shortages and elevated energy and raw material costs, coupled with the impact from factors such rising geopolitical risks, and the future outlook remained uncertain.

      Under these circumstances, the Yamato Group is promoting initiatives based on the medium-term management plan "Sustainability Transformation 2030 ~1st Stage~", to create “economic value”, as well as “environmental value” and “social value” to make our society more sustainable, including growing profits in the base domain by strengthening the TA-Q-BIN network, expanding the corporate business domain by providing business solutions, commercializing new business models to address the diversifying needs of customers and society, and strengthening the Group’s management platform, in order to achieve sustainable corporate value enhancement through the concept of “Helping to enrich our society”, which is part of our Management Philosophy.

      Our consolidated financial results for the first three months ended June 30, 2025 are as follows:

      (Millions of yen)

      Item	For the first three months ended June 30, 2024	For the first three months ended June 30, 2025	Change	Growth (%)
      Operating revenue	405,632	437,352	31,720	7.8
      Operating profit	(14,204)	(6,494)	7,710	–
      Ordinary profit	(14,875)	(6,656)	8,218	–
      Profit attributable to owners of parent	(10,112)	(5,424)	4,688	–

      For the first three months ended June 30, 2025, operating revenue was 437,352 million yen, up 31,720 million yen year-on-year. This was due to progress made in initiatives to reform the revenue mix, including the increase in TA-Q-BIN volume from small corporate and individual customers covered by the TA-Q-BIN segment, pricing optimization with large corporate clients covered by the Corporate segment, as well as the expansion of the Corporate business.

      Operating expenses were 443,847 million yen, up 24,009 million yen year-on-year. This was due to factors including investments in human capital to strengthen the TA-Q-BIN network, such as raising the compensation, as well as executing network investments including the reallocation of pickup and delivery bases, and higher costs associated with the growth in TA-Q-BIN volume. Meanwhile, we focused on cost control by reviewing operations in the Transportation domain.

      As a result, for the first three months ended June 30, 2025, operating loss was 6,494 million yen, which was an improvement of 7,710 million yen year-on-year.

      Initiatives for the Entire Yamato Group

      ① Reinforcement of the TA-Q-BIN network and the enhancement of value provided

      In order to transform the TA-Q-BIN business—our Base domain—into a structure that can stably generate

      profits, we are working to optimize pricing in line with the value provided. We are also creating an environment where Sales Drivers can engage directly with customers and focus on providing better services, as well as developing products and services that address customer needs, reallocating pickup and delivery bases in line with the characteristics of each local market, and expanding the “Nekosapo” network of community-based stores that offer services beyond TA-Q-BIN shipping and receiving. We are also enhancing transportation efficiency to strengthen the TA-Q-BIN network. In order to improve transportation and loading efficiency and optimize operating costs, while also addressing customer needs and ensuring appropriate workstyles for our transportation partners, we are reviewing our transportation methods, for example by switching to relay-based transportation systems using designated relay points for long-distance routes, promoting modal shifts such as the use of dedicated cargo aircraft, and reassessing terminal operations through the appropriate allocation of sorting personnel.

      ② Expanding the corporate business domain

      We aim to drive profit growth for the Yamato Group by integrating value-add services such as warehouse

      operations and international forwarding to our transportation and delivery network, thereby supporting the business expansion of our corporate clients. In the Contract Logistics business, which addresses the full scope of logistics and management challenges for corporate clients, we are expanding our value proposition by leveraging the expertise of Nakano Shokai Co., Ltd., which we have made a consolidated subsidiary, and operating B2B inventory and delivery hubs as well as integrated logistics centers for e-commerce businesses. By integrating international transportation and overseas contract logistics services provided through our Global business, we are enhancing our ability to support clients across their entire supply chain. Overseas, we are strengthening our sales capabilities mainly in the United States, Mexico, China, India, and Southeast Asia, and are working to improve the efficiency of international forwarding in our focus markets, enhance the proposals we make to cross-border e-commerce clients, and capture logistics demand arising from higher domestic demand, while also considering M&A and strategic business alliances.

      ③ Commercialization of “Green Mobility”

      The Yamato Group has been accumulating expertise and know-how regarding environmental and social

      challenges, in areas such as reducing greenhouse gas emissions, building sustainable and efficient logistics systems, and promoting employee health management, by addressing issues such as the 2024 labor issue and climate change, and by actively working to solve these issues together with our business partners.

      We will refine these initiatives into a “Green Mobility” business model, and offer them to clients as solutions to enhance the sustainability of supply chains, thereby driving new growth for the Yamato Group.

      From the perspectives of “vehicles” and “energy,” we are addressing the environmental needs of corporate clients who operate vehicles, through Yamato’s “EV Lifecycle Service,” a comprehensive package that includes vehicle maintenance services, procurement of EVs, expertise in their efficient utilization, supply of renewable energy-derived electricity, and an energy management system developed by the Yamato Group. From the perspective of “people,” we are supporting initiatives such as health management and accident prevention efforts for employees of transportation companies, who tend to face higher health risks, through the online medical service “MY MEDICA”.

      Furthermore, by providing shared transportation and delivery services, based on our trunk-route transportation and using an open platform that digitally matches cargo-owner companies with logistics providers, we are working to improve logistics efficiency across industries.

      ④ Strengthening the Group's management platform

      The Yamato Group continues to promote its human resource strategy and digital strategy as the foundation

      for achieving sustainable corporate value enhancement, and strengthen sustainable management and corporate governance.

      As for our human resource strategy, we are continuing to promote investments aimed at further raising the compensation of employees, including Sales Drivers, and enhancing the work environment. to achieve sustainable growth. At Yamato Transport Co., Ltd., we are expanding the use of fan-equipped vests as a countermeasure against heatstrokes, starting in June 2025, and promoting the installation of WBGT (Wet Bulb Globe Temperature) measurement devices at our business locations nationwide, as well as starting a trial implementation of wearable devices that detect heatstroke risk. In addition, to further strengthen our front-line organization and personnel who engage directly with customers, we are reallocating human resources to TA-Q-BIN sales offices and corporate sales branches, while streamlining administrative operations and organizational structures, as well as developing leadership talent. To heighten employee motivation, we are introducing a scheme in which compensation is determined based on performance, for employees in roles such as sales and planning.

      As for our digital strategy, we have strengthened our DX promotion structure and are working on DX promotion that is integrated with our business, such as expanding the value we provide to customers and reforming the way we “sort", “transport” and “work”, and reforming back-office operational processes, by utilizing our digital infrastructure.

      In order to strengthen sustainable management, we are strengthening our efforts to address the materialities we identified, based on our two visions “Green Logistics that connects, and delivers the future” and “Contributing to the realization of a society that ‘Leaves No One Behind’ through Co-creation and fair business activities” to enhance corporate value over the medium to long term, and realize a sustainable

      society.

      In the domain of the environment, we are continuing to promote measures such as “introducing EVs”, “introducing solar power generation equipment” and “improving the usage rate of renewable energy-based electricity”, in order to achieve the target of “48% reduction in greenhouse gas in 2030, compared to fiscal year ended March 2021” and “virtually zero greenhouse gas emissions (own emissions) by 2050”, as well as working to grasp net emissions in the supply chain (Scope 3), and setting reduction targets.

      Moreover, in the domain of the society, we continue to place the highest priority on respect for human life, and are strengthening initiatives for the safety and health of our employees and partners, while promoting the development of a work environment in which a diverse range of employees can play an active role. We are confronting various social issues, and promoting the establishment of a sustainable supply chain based on appropriate relationships, holding regular discussions with our business partners, and developing systems, processes, and mechanisms for the early detection and resolution of issues.

      As for enhancing our corporate governance, we are continuing to work on separating management supervision and execution, as well as maintaining and improving management transparency. We are working to enhance corporate value in a sustainable manner, through constructive dialogue with shareholders and investors, and enriching the disclosure of information.

      Business Strategies of Each SegmentExpress Business

      ① The Express Business provides domestic transportation and delivery services, mainly TA-Q-BIN, to individual and corporate customers. We are working to expand TA-Q-BIN parcel volume from small

      corporate clients and individual customers served by the TA-Q-BIN business, while optimizing pricing in line with the value provided for large corporate clients served by the Corporate business. At the same time, we are focused on creating an environment where Sales Drivers can engage directly with customers and concentrate on providing better service, developing products and services tailored to customer needs, reallocating pickup and delivery bases in line with local market characteristics, and expanding the

      “Nekosapo” network of community-based stores that offer services beyond TA-Q-BIN shipping and receiving. We are also enhancing transportation efficiency to strengthen the TA-Q-BIN network.

      ② In the first three months ended June 30, 2025, in light of cost increases due to changes in the external environment, we promoted initiatives to strengthen sales efforts targeting small corporate clients and

      individual consumers in the TA-Q-BIN segment, as well as addressing the diverse transportation needs of large corporate clients in the Corporate segment, and charging appropriate pricing based on the value-add provided. In addition, we promoted initiatives such as expanding “Okihai” services in collaboration with ecommerce operators, to provide a more convenient parcel receiving experience to a larger number of customers, reduce redeliveries, improve logistics efficiency, and reduce greenhouse gas emissions. Furthermore, to meet the growing demand for small parcel deliveries, we launched “Koneko-bin 420,” a new service enabling nationwide flat-rate shipping (excluding Okinawa Prefecture) through the advance purchase of dedicated packaging.

      As for strengthening the TA-Q-BIN network, in order to improve transportation and loading efficiency and optimize operating costs, while also addressing customer needs and ensuring appropriate workstyles for our transportation partners, we are reviewing our transportation methods, for example by switching to relay-based transportation systems using designated relay points for long-distance routes, promoting modal shifts such as the use of dedicated cargo aircraft, and improving the allocation of sorting personnel.

      ③ Operating revenue from customers was 363,203 million yen, up 2.8% year on year, driven by growth in TA-Q-BIN volume from small corporate and individual customers covered by the TA-Q-BIN segment, as well

      as progress in setting appropriate pricing for large corporate clients covered by the Corporate segment. In terms of expenses, there were increases due to investments in human capital—such as raising the compensation of employees and partners—as part of efforts to strengthen the TA-Q-BIN network, along with network investments such as the reallocation of pickup and delivery bases, and costs associated with the increase in TA-Q-BIN volume, however by reviewing operations in the Transportation domain and focusing on cost control, together with other factors, operating expenses were 386,794 million yen. As a result, operating loss was 13,437 million yen, improvement 7,268 million yen year on year.

      Contract Logistics Business

      ① In the Contract Logistics Business, we provide solutions that integrate our value-add services such as warehouse operations to our transportation and delivery network, thereby supporting corporate clients in

      resolving their business challenges and driving growth.

      ② In the first three months ended June 30, 2025, we proposed higher value-add supply chain solutions such as the operation of inventory and delivery hubs for B2B transactions and integrated logistics centers for e-

      commerce operators, while also working to improve the quality and productivity of our operations, leveraging the expertise of Nakano Shokai Co., Ltd., which we made a consolidated subsidiary.

      ③ Operating revenue from customers was 37,720 million yen, up 95.0% year-on-year, due to factors including winning new mandates and Nakano Shokai Co., Ltd. becoming a consolidated subsidiary.

      Operating profit increased 35 million yen year-on-year to become 1,213 million yen.

      Global Business

      ① In the Global Business, domestic and overseas operating companies collaborate to provide solutions that optimize the entire global supply chain of corporate clients, by combining international forwarding,

      international express, contract logistics at overseas locations, and other services. Recognizing the changes in supply chains as an opportunity, we are working to further expand our business in areas where the Yamato Group has strengths, such as the automotive, high-tech and food industries, while leveraging our vast customer base in Japan, which we have built up through our TA-Q-BIN services, and strengthening our sales capabilities particularly in Japan, the U.S. and Mexico, China, India and Southeast Asia.

      ② In the first three months ended June 30, 2025, we further strengthened collaboration between our domestic operating companies and overseas group entities, establishing an integrated framework for business

      operations. At the same time, we continued to promote initiatives such as improving mixed cargo loading efficiency in international forwarding, enhancing proposals to the growing cross-border e-commerce operators, and capturing logistics demand driven by domestic consumption growth in key focus regions.

      ③ Operating revenue from customers was 24,819 million yen, up 13.2% year-on-year, driven by factors including progress made in sales expansion of international forwarding operations. Operating profit

      increased 143 million yen year-on-year to become 2,606 million yen.

      (Reference)

      (Million parcels / units)

      Category	For the first three months ended June 30, 2024	For the first three months ended June 30, 2025	Change	Growth (%)
      TA-Q-BIN/TA-Q-BIN Compact/EAZY	451	463	11	2.6
      Nekopos/Kuroneko Yu-Packet	99	107	7	7.7
      Kuroneko Yu-Mail	33	27	(5)	(18.0)

      Mobility Business

      ① In the Mobility Business, we are addressing the environmental needs of corporate clients who operate vehicles, through Yamato’s “EV Lifecycle Service,” a comprehensive package that includes vehicle

      maintenance services, procurement of EVs, expertise in their efficient utilization, supply of renewable energy-derived electricity, and an energy management system developed by the Yamato Group.

      We also provide vehicle maintenance services that support the safe operation of transportation companies and help extend their vehicle operating hours by minimizing downtime.

      ② In the first three months ended June 30, 2025, we strengthened the sales coverage and expanded sales of the “EV Lifecycle Service”. Moreover, by reviewing the operation process we worked to develop an

      environment in which vehicle maintenance staff can focus on their main line of work, as well as expanding sales of vehicle maintenance services and to charge the appropriate unit prices.

      ③ Operating revenue from customers was 5,092 million yen, up 1.7% year-on-year, due to factors including the increase in the number of contracted vehicles, as well as the charging of appropriate unit prices.

      Operating profit was 1,607 million yen, up 356 million yen year-on-year, due to factors including the focus on cost optimization.

      Other

      ① Yamato Group's IT, call center, financial services, and other functions support our efforts to expand the value we provide to the entire supply chain of our clients. In the first three months ended June 30, 2025,

      we continued to promote the provision of IT and other services that help clients improve operational efficiency and end-user convenience.

      ② Operating revenue from customers was 6,516 million yen, up 5.9% year-on-year. Operating profit was 1,637 million yen, down 49 million yen year-on-year.

      Other Initiatives

      ① The Yamato Group places utmost priority on protecting human life and conducts a range of safety measures. Accordingly, its transport safety management practices in that regard involve drawing up its Safety

      Management Regulations, building up its transport safety management systems, and formulating annual plans, all centered on respective Group companies whose main operations involve transport.

      ② The Yamato Group believes that enriching local communities serves as the foundation for the Group's growth and development, and actively engages in corporate citizenship activities, with the goal of promoting the

      healthy and sustainable development of local communities and ensuring a high quality of life for those who live there. In terms of the environment, as a corporate group with a nationwide network, we have been conducting the "Kuroneko Yamato Environmental Class" since 2005 to support environmental education for children, who will lead the next generation, and to help preserve local natural environments for the future. To date, we have held over 3,500 sessions, with a cumulative total of roughly 270,000 participants.

      ③ Aspiring to be a company that continually evolves in step with society, and led by the Yamato Welfare Foundation, the Yamato Group conducts various activities to help realize a society in which disabled

      people can experience the joy of working autonomously. Specifically, we engage in ongoing programs that support economic independence of people with disabilities, such that include actively employing people with disabilities at the Swan Bakery which makes and sells bread, and operating job-finding support facilities where they take part in training to acquire skills and knowledge necessary for employment.

   2. ‌Explanation of Financial Position

      (Status of assets, liabilities and net assets)

      Total assets were 1,239,746 million yen as of June 30, 2025, down 27,681 million yen from the end of the previous fiscal year. The decline was largely attributable to the 27,808 million yen decline in cash and deposits, due to the acquisition of our own shares and dividend payments etc.

      Liabilities increased 6,056 million yen to 673,133 million yen from the end of the previous fiscal year. There was a 44,765 million yen increase in accrued expenses due to factors including the booking of summer bonuses, while there were decreases of 17,140 million yen in provision for bonuses, 13,457 million yen in notes and accounts payable - trade, and 10,642 million yen in income taxes payable due to factors including the payment of income taxes.

      Total net assets were 566,612 million yen, down 33,737 million yen from the end of the previous fiscal year. The major factors included the loss attributable to owners of parent being 5,424 million yen, the payout of 7,513 million yen of dividends of surplus, and the 18,915 million yen purchase of treasury shares.

      As a result, the equity ratio changed to 44.8%, from 46.5% in the previous fiscal year.

      (Overview of cash flows)

      Net cash generated by operating activities amounted to 18,476 million yen, which was 13,917 million yen higher than the same period of the previous fiscal year. This was mainly due to an 8,445 million yen improvement in the balance of loss before income taxes (which was 6,614 million yen) and an 8,293 million yen increase in accrued consumption taxes, while income taxes paid increased by 5,578 million yen.

      Net cash used in investing activities amounted to 14,247 million yen, which was a decrease of 1,688 million yen compared with the same period of the previous fiscal year. This was largely attributable to the 1,311 million yen decrease in expenditure for the purchase of property, plant and equipment.

      Net cash used in financing activities was 31,853 million yen, which was an increase in payment of 12,486 million yen compared to the same period of the previous fiscal year. This was largely attributable to the 18,923 million yen increase in spending related to the purchase of treasury shares, while expenditure from the net increase/decrease in short-term borrowings decreased by 6,300 million yen.

      As a result of the above, cash and cash equivalents were 180,462 million yen as of June 30, 2025, down 27,594 million yen from the end of the previous fiscal year.

   3. ‌Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements

   In the business environment surrounding the Yamato Group, although there were signs of a moderate improvement in overall business sentiment, consumer spending has yet to see a full-fledged recovery due to continued inflation and a decline in real wages. The business environment remains challenging, with labor shortages and elevated energy and raw material costs, coupled with the impact from factors such rising geopolitical risks, and the future outlook remained uncertain.

   Under these circumstances, the Yamato Group has defined its aspiration for 2030 as becoming a “value-creating company that contributes to the realization of a sustainable future,” with the aim of achieving sustainable enhancement of corporate value through the concept of “Helping to enrich our society” which is part of our management philosophy. We have positioned the medium-term management plan "Sustainability Transformation 2030 ~1st Stage~", which covers the period until the fiscal year ending March 2027, as the “three-year period to strengthen the TA-Q-BIN network and transform the business portfolio”, and will generate “economic value” through initiatives such as reinforcing the TA-Q-BIN network to enhance the value we provide, expanding the Corporate business domain by providing solutions that cover the entire supply chain, commercializing new business models to meet the diversifying needs of customers and society, and strengthening the Group's management platform, while also creating “environmental value” and “social value” by contributing to the sustainability of society.

   For the fiscal year ending March 2026, in the TA-Q-BIN domain which is our base domain, Yamato Group will focus on transforming the revenue structure and charging the appropriate pricing based on the value-add we provide. In our Corporate domain, we aim to return to a growth trajectory in operating revenues by leveraging our transportation & delivery network and operational expertise to propose and win mandates from corporate clients, as well as. At the same time, through our facilities strategy, we will work to strengthen the TA-Q-BIN network in to make it more efficient and sustainable, as well as address customer needs, improve transportation and loading efficiency, and optimize operating costs through fixed cost control and variable cost management in accordance with the workload, and drive further profit growth.

   Our consolidated earnings forecast for the second quarter (cumulative) and the full year remain unchanged from the previous announcement on May 1, 2025, since our earnings are generally progressing in line with the plan.

2. ‌Consolidated Financial Statements and Significant Notes Thereto
   1. ‌Consolidated Balance Sheet

      		(Millions of yen)
      	As of March 31, 2025	As of June 30, 2025
      Assets
      Current assets
      Cash and deposits	208,654	180,845
      Notes and accounts receivable - trade, and contract assets	219,762	223,005
      Accounts receivable - installment	56,415	57,540
      Merchandise and finished goods	645	309
      Work in process	245	334
      Raw materials and supplies	2,507	2,392
      Other	34,433	28,473
      Allowance for doubtful accounts	(1,505)	(1,499)
      Total current assets	521,160	491,402
      Non-current assets
      Property, plant and equipment
      Buildings and structures	417,200	421,819
      Accumulated depreciation	(239,331)	(242,344)
      Buildings and structures, net	177,869	179,474
      Vehicles	183,306	179,553
      Accumulated depreciation	(153,909)	(151,939)
      Vehicles, net	29,397	27,613
      Land	177,705	177,706
      Leased assets	59,428	64,211
      Accumulated depreciation	(15,045)	(15,598)
      Leased assets, net	44,382	48,613
      Other	156,645	153,617
      Accumulated depreciation	(111,646)	(111,453)
      Other, net	44,999	42,164
      Total property, plant and equipment	474,354	475,572
      Intangible assets
      Goodwill	15,827	15,459
      Other	66,747	66,556
      Total intangible assets	82,574	82,015
      Investments and other assets
      Investment securities	48,689	48,077
      Other	142,322	144,308
      Allowance for doubtful accounts	(1,672)	(1,629)
      Total investments and other assets	189,339	190,755
      Total non-current assets	746,268	748,343
      Total assets	1,267,428	1,239,746

      (Millions of yen)

      	As of March 31, 2025	As of June 30, 2025
      Liabilities
      Current liabilities
      Notes and accounts payable - trade	173,474	160,016
      Short-term borrowings	14,325	10,582
      Lease liabilities	7,195	7,446
      Income taxes payable	14,968	4,325
      Deferred installment income	5,669	5,872
      Provision for bonuses	31,369	14,228
      Other	107,637	152,505
      Total current liabilities	354,639	354,978
      Non-current liabilities
      Bonds payable	20,000	20,100
      Long-term borrowings	86,258	86,489
      Lease liabilities	46,016	50,521
      Retirement benefit liability	128,589	128,433
      Provision for special repairs	3,277	4,115
      Other	28,295	28,494
      Total non-current liabilities	312,437	318,155
      Total liabilities	667,077	673,133
      Net assets
      Shareholders’ equity
      Share capital	127,234	127,234
      Capital surplus	36,849	36,849
      Retained earnings	470,183	457,246
      Treasury shares	(73,913)	(92,828)
      Total shareholders’ equity	560,354	528,501
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	8,249	8,064
      Foreign currency translation adjustment	4,215	3,694
      Remeasurements of defined benefit plans	16,440	15,435
      Total accumulated other comprehensive income	28,905	27,194
      Non-controlling interests	11,091	10,916
      Total net assets	600,350	566,612
      Total liabilities and net assets	1,267,428	1,239,746

   2. ‌ Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income (Cumulative)‌

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Operating revenue	405,632	437,352
      Operating costs	406,686	429,070
      Operating gross profit (loss)	(1,053)	8,282
      Selling, general and administrative expenses	13,151	14,776
      Operating loss	(14,204)	(6,494)
      Non-operating income
      Interest income	108	77
      Dividend income	350	329
      Other	471	615
      Total non-operating income	930	1,023
      Non-operating expenses
      Interest expenses	357	559
      Share of loss of entities accounted for using equity method	192	238
      Foreign exchange losses	807	—
      Other	242	387
      Total non-operating expenses	1,600	1,185
      Ordinary loss	(14,875)	(6,656)
      Extraordinary income
      Gain on sale of non-current assets	1	0
      Gain on sale of investment securities	149	2
      Gain on liquidation of subsidiaries	—	153
      Total extraordinary income	151	157
      Extraordinary losses
      Loss on retirement of non-current assets	70	79
      Loss on valuation of investment securities	264	5
      Other	—	30
      Total extraordinary losses	335	114
      Loss before income taxes	(15,059)	(6,614)
      Income taxes	(4,978)	(1,222)
      Loss	(10,081)	(5,391)
      Profit attributable to non-controlling interests	31	32
      Loss attributable to owners of parent	(10,112)	(5,424)

      ‌Consolidated Statement of Comprehensive Income (Cumulative)

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Profit (loss)	(10,081)	(5,391)
      Other comprehensive income
      Valuation difference on available-for-sale securities	2,933	(184)
      Foreign currency translation adjustment	2,683	(517)
      Remeasurements of defined benefit plans, net of tax	(30)	(995)
      Share of other comprehensive income of entities accounted for using equity method	(15)	(13)
      Total other comprehensive income	5,570	(1,709)
      Comprehensive income	(4,510)	(7,101)
      Comprehensive income attributable to
      Comprehensive income attributable to owners of parent	(4,510)	(7,134)
      Comprehensive income attributable to non-controlling interests	0	33

   3. ‌Consolidated Statement of Cash Flows

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Cash flows from operating activities
      Loss before income taxes	(15,059)	(6,614)
      Depreciation	11,795	12,785
      Amortization of goodwill	—	368
      Increase (decrease) in retirement benefit liability	1,083	(155)
      Increase (decrease) in provision for bonuses	(17,942)	(17,143)
      Share of loss (profit) of entities accounted for using equity method	192	238
      Decrease (increase) in trade receivables	(2,950)	(4,325)
      Increase (decrease) in trade payables	(10,345)	(13,516)
      Other, net	42,153	56,987
      Subtotal	8,927	28,624
      Interest and dividends received	634	583
      Interest paid	(413)	(563)
      Income taxes paid	(4,590)	(10,168)
      Net cash provided by (used in) operating activities	4,558	18,476
      Cash flows from investing activities
      Purchase of property, plant and equipment	(13,054)	(11,743)
      Proceeds from sale of property, plant and equipment	240	206
      Purchase of investment securities	(6)	(152)
      Proceeds from sale of investment securities	207	12
      Loan advances	(246)	(514)
      Proceeds from collection of loans receivable	367	573
      Other payments	(4,452)	(4,649)
      Other proceeds	1,009	2,020
      Net cash provided by (used in) investing activities	(15,935)	(14,247)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	(10,000)	(3,700)
      Repayments of lease liabilities	(1,574)	(1,975)
      Proceeds from long-term borrowings	—	684
      Repayment of long-term borrowings	—	(495)
      Proceeds from issuance of bonds	—	96
      Purchase of treasury shares	(0)	(18,924)
      Dividends paid	(7,713)	(7,329)
      Other, net	(78)	(208)
      Net cash provided by (used in) financing activities	(19,367)	(31,853)
      Effect of exchange rate change on cash and cash equivalents	1,312	29
      Net increase (decrease) in cash and cash equivalents	(29,431)	(27,594)
      Cash and cash equivalents at beginning of period	194,702	208,057
      Increase (decrease) in cash and cash equivalents from the change in fiscal period-end of consolidated subsidiaries	458	—
      Cash and cash equivalents at end of period	165,729	180,462

   4. ‌Notes to Quarterly Consolidated Financial Statements

      The quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1 of the “Regulations for Quarterly Financial Statements” prescribed by the Tokyo Stock Exchange, as well as the accounting standards for quarterly financial statements generally accepted in Japan (with certain disclosures omitted pursuant to Article 4, Paragraph 2 of the aforementioned regulations).

      ‌(Notes to premise of going concern)

      Not applicable.

      ‌(Note on significant changes in the amount of shareholders’ equity)

      Not applicable.

      ‌(Change in scope of consolidation or scope of application of equity method)

      (Material change to scope of consolidation)

      The liquidation of Yamato Investment (Hong Kong) Ltd. has been completed in the first three months ended June 30, 2025, and has been excluded from the scope of consolidation.

      ‌(Significant matters forming the basis of preparing the consolidated financial statements)

      (Calculation of tax expenses)

      The effective tax rate after applying tax effect accounting to estimated pretax profit for the full fiscal year, including the first three months ended June 30, 2025, was rationally estimated and applied to pretax quarterly profit to calculate the tax expense.

      ‌(Segment information, etc.)

      Segment information

      1. First three months ended June 30, 2024 (April 1, 2024 to June 30, 2024)

         ①Information regarding the amounts of operating revenue, profit/loss and other items by reportable segment

         (Millions of yen)

         	Express Business	Contract Logistics Business	Global Business	Mobility Business	Other (Note 1)	Total	Reconciliation (Note 2)	Amount recorded in consolidated financial statements (Note 3)
         Operating revenue
         Operating revenue from customers	353,206	19,347	21,919	5,007	6,151	405,632	—	405,632
         Inter-segment operating revenue or transfers	9,114	1,130	886	8,614	11,821	31,567	(31,567)	—
         Total	362,320	20,478	22,806	13,621	17,973	437,200	(31,567)	405,632
         Segment profit (loss)	(20,706)	1,178	2,462	1,251	1,686	(14,127)	(77)	(14,204)

         Notes: 1. Other includes Yamato System Development Co., Ltd. (information systems development) etc.

         1. The adjustment of negative 77 million yen of segment loss includes group-wide expenses which have not been allocated to each reportable segment (general administrative expenses of the Company, which is a pure holding company) of negative 1,964 million yen, as well as eliminations of transactions among segments of 1,886 million yen.

         2. An adjustment was made between segment profit (or loss if in brackets) and operating loss in the consolidated statement of income.

      2. First three months ended June 30, 2025 (April 1, 2025 to June 30, 2025)

         ①Information regarding the amounts of operating revenue, profit/loss and other items by reportable segment

         (Millions of yen)

         	Express Business	Contract Logistics Business	Global Business	Mobility Business	Other (Note 1)	Total	Reconciliation (Note 2)	Amount recorded in consolidated financial statements (Note 3)
         Operating revenue
         Operating revenue from customers	363,203	37,720	24,819	5,092	6,516	437,352	—	437,352
         Inter-segment operating revenue or transfers	10,152	5,058	908	11,108	10,510	37,738	(37,738)	—
         Total	373,356	42,779	25,728	16,200	17,026	475,091	(37,738)	437,352
         Segment profit (loss)	(13,437)	1,213	2,606	1,607	1,637	(6,371)	(122)	(6,494)

         Notes: 1. Other includes Yamato System Development Co., Ltd. (information systems development) etc.

         1. The adjustment of negative 122 million yen of segment loss includes group-wide expenses which have not been allocated to each reportable segment (general administrative expenses of the Company, which is a pure holding company) of negative 1,644 million yen, as well as eliminations of transactions among segments of 1,522 million yen.

         2. An adjustment was made between segment profit (or loss if in brackets) and operating loss in the consolidated statement of income.

   ②Changes in reporting segments, etc. (Change in method of calculation)

   To better assess profit and loss by reporting segment, the allocation method for head office-related expenses of Yamato Transport Co., Ltd., a consolidated subsidiary, has been changed in the first three months ended June 30, 2025. If this change had been applied retroactively to the first three months ended June 30, 2024, segment profit (loss) would have increased by 575 million yen in the Express business, and decreased by 110 million yen in the Contract Logistics business and 465 million yen in the Global business. This change has no impact on the figures reported in the Quarterly Consolidated Statement of Income.

3. ‌Supplementary Information

‌Operating Revenue by Segment