|
To Our Shareholders and Investors:
The Yamato Group is pursuing a business strategy designed to achieve dramatic Group-wide growth backed by the full mobilization of its business resources while expanding its door-to-door focused parcel delivery business. Under this business strategy, we have implemented an aggressive drive to integrate our logistics technology (LT), information technology (IT), and financial technology (FT) into one of these business resources, the powerful parcel delivery network, deliver a set of unparalleled services with enhanced conveniences for our customers, and generate new value in the process.
In the first quarter, our parcel delivery business continued to face tough business conditions marked by a year-on-year decline in total parcel volume under the effects of a protracted economic downturn. Nonetheless, it still posted growth in earnings thanks to the effectiveness of a variety of intensive productivity enhancement initiatives we launched in the previous term.
Although our non-delivery business segment includes some operations that were also impacted by the bleak economic situation, high value-added services that harness the amassed strengths of the Yamato Group effectively spurred hidden demand and posted smooth growth.
Consequently, we achieved consolidated first-quarter results shown in the table below. Note that in the quarter under review, the Yamato Group and cooperating airlines adopted new accounting procedures for the handling of air cargo fees, resulting in a 7.869 billion yen decrease in operating revenue and operating expenses. Operating income, ordinary income, and net income for the quarter under review were not affected by this change.
| |
Q1 2008 |
Q1 2009 |
Change |
Growth (%) |
Operating
revenue |
297,260 |
278,942 |
(18,317) |
(6.2) |
Operating
income |
5,248 |
7,811 |
2,562 |
48.8 |
Ordinary
income |
5,867 |
8,566 |
2,698 |
46.0 |
| Net income |
1,135 |
4,089 |
2,954 |
260.2 |
|
Current business initiatives
| 1. |
In keeping with the Satisfaction Creation Three-Year Plan launched in April 2008, the Yamato Group has been engaged in the development of business operations that contribute to the realization of a more affluent society through the creation of new value. Utilizing cross-alliances of Group affiliates, this year—the second year of the three-year plan—the Group expanded its application of the business model it developed last year with the goal of boosting customer conveniences. As a result, it has earned high marks from customers and made progress in expanding its business operations. |
| 2. |
Among steps taken to reinforce our earnings base, we have registered success in all business domains with a full-fledged drive comprising measures to boost productivity and maximize efficiency. In the years ahead, we will continue working to bolster our business foundations through personnel placement strategies optimized to business volume and progress with the streamlining of operating procedures. |
| 3. |
As a measure to increase shareholder value and cultivate an improved climate for investment, the May 14 meeting of our Board of Directors approved a decrease in the number of shares comprising an investment unit. Accordingly, starting October 1 this year, the number of shares constituting one unit (share unit number) will decrease from 1,000 to 100. In the period ahead, we will continue with steps to boost stock liquidity and corporate value through the expansion of our shareholder base. |
We look forward to the continued support and encouragement of our shareholders as we move to mobilize the collective powers of the Yamato Group and enhance our corporate value.
Kaoru Seto, President and CEO
July 2009 |
|
