To our Shareholders and Investors:
In terms of the business environment during the six months ended September 30, 2011, the Japanese economy overall appeared to be at a standstill. Not only was there a drop in production activities by companies and limited electricity supply due to the impact of the Great East Japan Earthquake that occurred on March 11,2011 there was also a slowdown of export-related demand as a result of the strong yen. Nevertheless, as Japan has begun to recover from the Great East Japan Earthquake, the economy has been showing signs of economic pickup due to restoration of the supply chain and a recovery in consumer spending, and it has been following a gentle upward trend. Operating in this environment, the Yamato Group put forward proposals for various services such as dispersed inventory and net supermarket in response to the changes in the societal structures and distribution systems that have been brought about by the earthquake.
The results of the Delivery Business were higher, compared to the year-ago period, with respect to Takkyubin parcel volume, which is attributable to efforts to improve the convenience of Takkyubin and the promotion of proposal-type marketing aimed at corporate clients.
In the non-delivery businesses, the Yamato Group's management resources were laterally utilized to expand sales of services to realize sales expansion, better business efficiency and cost reduction for corporate clients.This enabled us to achieve steady revenue growth.
Our consolidated financial results for the six months ended September 30, 2011 were as follows.
(Millions of yen)
| Item | For the six months ended September 30, 2010 | For the six months ended September 30, 2011 | Change | Growth (%) |
|---|---|---|---|---|
| Operating revenue | 597,857 | 613,526 | 15,669 | 2.6 |
| Operating income | 20,222 | 22,676 | 2,454 | 12.1 |
| Ordinary income | 21,377 | 23,307 | 1,930 | 9.0 |
| Net income | 10,499 | 5,877 | (4,621) | (44.0) |
Initiatives for the entire Yamato Group
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1.While expanding its Delivery Business, which centers on Takkyubin, the Yamato Group is working to create new value to make the lives of customers more convenient by utilizing a multiple assortment of the management resources accumulated in the Group. By proceeding with the expansion of its services into the Asia region, the Group aims to expand its business area and strengthen the growth momentum of the entire Yamato Group.
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2.Inside the Japanese market, the Group promoted unique Yamato Group services that differentiate us from competitors such as accepting payments for delivery of Takkyubin Collect by commuter-type e-money such as Suica, providing support services for net supermarket business and providing a maintenance service for medical devices. The Group shall continue in the future to offer convenience to both senders and receivers of parcels by creating services that utilize the Yamato Group's unique functions and by expanding the market of these services.
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3.In its business evolution into the Asia region, the Group focused its energies on expanding its business area. While promoting new services such as same-day delivery in Shanghai, the Group started the Takkyubin service in Malaysia in September 2011. Moving forward, by proactively promoting the development of various services centered on Takkyubin, the Yamato Group aims to contribute to the realization of an affluent society in the Asia region.
We look forward to the continued support and encouragement of our shareholders and investors as we move to mobilize the collective powers of the Yamato Group and enhance our corporate value.
October 2011
