Review of Depreciation Methods and Useful Lives for Property, Plant and Equipment

「The Group previously used the declining-balance method mainly to depreciate property, plant and equipment, but changed to the straight-line method from the current consolidated fiscal year. In addition, following a review of the expected periods of use and residual values of property, plant and equipment, the Group had previously depreciated certain vehicles and other transport equipment using a useful life of 4 years, but from the current consolidated fiscal year has changed the useful lives to 8 to 15 years, depending on the type of transport equipment. As a result of these changes, operating income for the current consolidated fiscal year increased by ¥1,517 million compared with the previous method.」

「The Group previously used the declining-balance method mainly to depreciate property, plant and equipment, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. In response to changes in the internal and external environment, including the formulation of the medium-term management plan from the fiscal year ending November 2016 onward, the reorganisation of sales offices through investment in large-scale facilities in recent years, and amendments to the law governing the shipper recommendation system, the Group reviewed the actual use and intended use of its property, plant and equipment. As a result, although certain vehicles and other transport equipment had previously been depreciated using a useful life of 4 years, from the first quarter of the current consolidated fiscal year the useful lives have been changed to 8 to 15 years, depending on the type of transport equipment. As a result of these changes, operating income for the nine months ended 31 August of the current consolidated fiscal year increased by ¥978 million compared with the previous method.」