Yusen Logistics : Notice of the Differences between Consolidated Financial Forecast and Actual ...

October 31, 2016

Corporate Name: Yusen Logistics Co., Ltd. Representative: Kenji Mizushima,

President and Representative Director Code Number: 9370, the First Section of TSE Contact: Ken Takano, General Manager,

Corporate Communication Department (TEL: +81 3 6703 8298)

Yusen Logistics Co., Ltd. (the "Company") announces the differences between the consolidated financial forecast for the six months ended September 30, 2016 announced on April 28, 2016 and the actual results for the same period announced today. The Company also announces revision of its financial forecast for the fiscal year ending March 31, 2017, reversal of deferred tax assets, dividend from retained earnings and revision of year-end dividend forecast for fiscal year ending March 31, 2017.

The details are as follows:

1. Differences between consolidated financial forecast and actual results for the six months ended September 30, 2016 (April 1, 2016 - September 30, 2016)

   (Million yen)

   Net Sales	Operating Income	Ordinary Income	Net Income Attributable to Owners of the Parent	Net Income per Share
   Previous Forecast (A)	233,000	3,750	3,900	1,200	28.46 yen
   Actual Results (B)	214,584	2,896	3,855	△189	△4.49 yen
   Difference (B) - (A)	△18,416	△854	△45	△1,389	－
   Difference (%)	△7.9	△22.8	△1.1	－	－
   (Reference) Results for the Six Months Ended September 30, 2015	237,417	4,598	5,518	2,371	56.22 yen

2. Revision of consolidated financial forecast for the fiscal year ending March 31, 2017 (April 1, 2016 - March 31, 2017)

   (Million yen)

   Net Sales	Operating Income	Ordinary Income	Net Income Attributable to Owners of the Parent	Net Income per Share
   Previous Forecast (A)	470,000	10,000	10,200	4,000	94.86 yen
   Revised Forecast (B)	430,000	7,500	8,700	1,500	35.57 yen
   Difference (B) - (A)	△40,000	△2,500	△1,500	△2,500	－
   Difference (%)	△8.5	△25.0	△14.7	△62.5	－
   (Reference) Results for the Fiscal Year Ended March 31, 2016	469,816	9,057	10,003	2,699	64.01 yen

3. Reasons for the differences and the revision

   For the six months ended September 30, 2016, business environment of Air freight forwarding remained severe especially in Japan Region and slowdown in emerging economy growth affected South Asia & Oceania Region. In addition, the Company reversed deferred tax assets.

   After the consideration of the results for the six months ended September 30, 2016 and the concern of uncertain outlook for business environment on and after the third quarter, the Company revised the consolidated financial forecast for the fiscal year ending March 31, 2017 as above.

4. Reversal of deferred tax assets

   Upon examination of the recoverability of deferred tax assets based on the forecast, the Company decided to reverse a portion of deferred tax assets and recorded approximately 1,433 million yen in Income taxes-deferred in the second quarter of the fiscal year ending March 31, 2017.

5. Detail of dividend

   Resolution	Previous Forecast (Announced on April 28, 2016)	Previous Fiscal Year (For the Six Months Ended September 30, 2015)
   Base Date	September 30, 2016	September 30, 2016	September 30, 2015
   Dividend per Share	9.00 yen	10.00 yen	10.00 yen
   Total Dividends	380 million yen	－	422 million yen
   Effective Date	December 5, 2016	－	December 4, 2015
   Dividend Resource	Retained earnings	－	Retained earnings

6. Revision of dividend forecast

   Dividends per Share
   Base Date	Interim	Year-End	Total
   Previous Forecast (Announced on April 28, 2016)	10.00 yen	10.00 yen	20.00 yen
   Revised Forecast	－	9.00 yen	18.00 yen
   Actual Dividend	9.00 yen	－	－
   Previous Fiscal Year (Fiscal Year Ended March 31, 2016)	10.00 yen	10.00 yen	20.00 yen

7. Reasons

The Company recognizes that returning profits to its shareholders is one of the top management priorities. Profit sharing is based on the stable dividends, considering financial conditions. The basic policy is to expand and grow its group business to improve the corporate value, and further enhance the returning of profits to its shareholders.

With regards to dividends for the fiscal year ending March 31, 2017, the Company determined the amount of the interim dividend 9.00 yen per share and revised the forecast for the year-end dividend to 9.00 yen per share, totaling 18.00 yen per share for the full year.

(Note) The above forecast is based upon information currently available, which involves a great deal of uncertainty. Actual results may differ materially from those projected due to various factors in the future.

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