To our Shareholders and Investors:

Regarding the business environment during the six months ended September 30, 2012, although the mail-order market continued to expand, conditions continued to be unpredictable because of concerns about the overseas economic slowdown resulting from the European debt crisis, and the prolonged strong yen, among other factors. Operating in this environment, the Yamato Group worked to achieve greater sophistication of its existing businesses, particularly the TA-Q-BIN Business, to realize the objectives of the Long-Term Management Plan “DAN-TOTSU Management Plan 2019” and the Medium-Term Management Plan “DAN-TOTSU Three-Year Plan HOP,” and took steps to create new value by utilizing a multiple assortment of the management resources within the Group and construct an intermodal transportation platform in the Asian region.

In the Delivery Business, while implementing new services and campaigns for individual customers, the Yamato Group strove to promote proposal-based sales to support corporate clients in their efforts to expand their sales channels and solve management challenges. As a result, the TA-Q-BIN delivery volume increased from the year-ago period, but the delivery volume of Kuroneko Mail declined, affected by stricter parcel acceptance policies. In addition, due to an increase in investment-oriented expenses, which accompanied measures to reform the pickup and delivery operations, profits declined from the year-ago period.

In the non-delivery businesses, in addition to further expanding sales of e-money related services and creating new services in the Home Convenience Business, we expanded bases in the Truck Maintenance Business.

Our consolidated financial results for the six months ended September 30, 2012 were as follows.

(Millions of yen)

Initiatives for the entire Yamato Group

• 1. 
  Aiming to strengthen the growth momentum of the entire Yamato Group, the Group is focusing its energies on expanding its business area through greater penetration of its services in the Asia region. Moreover in Japan, while striving to enhance existing functions particularly in relation to TA-Q-BIN and creating new services, we are providing local community-oriented services and functions in each region throughout Japan.
• 2. 
  In its business development in the Asian region, the Yamato Group is boosting sales activities in the areas where TA-Q-BIN is being promoted and enhancing overseas bases for trade logistics, as well as strengthening its logistics function that interlinks the countries and regions. In the first six months ended September 30, 2012, the Group aimed to realize next-day delivery and Cool TA-Q-BIN services for small-lot transportation in the Asia region and proceeded with the construction of an intermodal transportation platform that utilizes Okinawa’s international logistics hub.
• 3. 
  In the Japanese market, in addition to creating new services and proposing composite services that have been tailored to suit the individual needs of corporate clients, the Yamato Group, through collaboration with the governments of each region, has commenced the provision of services that support local residents and companies. The Group is committed to improving convenience to corporate as well as individual customers by promoting the utilization of the accumulated functions and network of the entire Yamato Group, the Group is also committed to contributing to regional society.

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 2012