Summary of Financial Results

In the business environment surrounding Yamato Group, the global inflationary trend became more stable, with the rise in natural resources and energy prices due to the instability in global affairs reversing to a decline, and measures are being taken in anticipation of a slowdown in the economy, such as the European financial authorities deciding not to raise interest rates. Meanwhile in Japan, it remains hard to anticipate a full-fledged economic recovery. Although the economic sentiment is currently improving, with cost inflation being passed on to prices, and the growth in consumption for services due to the recovery in domestic and inbound tourism demand, as well as the increase in capital expenditures, there are factors such as the decline in demand and cost hikes due to further inflation, as well as the labor shortage becoming more serious. Under these circumstances, the Yamato Group is promoting initiatives to provide comprehensive value to address the diversifying needs of customers and society, in order to achieve sustainable corporate value enhancement through “Helping to enrich our society” which is part of our Management Philosophy, under the Group management structure in which we brought together the management resources of each Group company.

As for the full-year earnings forecast, operating revenue is expected to be 20,000 million yen lower than the previous forecast, due to the revenues of parcel delivery being below the expected level and the continuing downward trend in international transportation.

Under these circumstances, although we will continue to focus on optimizing operating costs, operating expense is expected to exceed the previous forecast by 5,000 million yen, mainly due to the rise in unit prices of subcontracting expenses, mainly outsourcing expenses, etc. Operating profit has been revised downward to 40,000 million yen, down 25,000 million yen from the previous forecast. In addition, in the fourth quarter, when demand for parcel delivery is expected to be weak, the company expects an operating loss, as it did last year.

Due to these factors, the Company has revised the forecast for ordinary profit to 40,000 million yen (down 25,000 million yen from the previous forecast) and profit attributable to owners of parent to 36,000 million yen (down 16,000 million yen from the previous forecast).