Integrated Report 2021（A4）[PDF:8.37MB]

Integrated Report 2021

"One YAMATO 2023"

Medium-Term Management Plan

Based on "YAMATO NEXT100"

VALUE CREATION BY THE NEW YAMATO GROUP

The Yamato Group's Important Role as a Part of Social Infrastructure

Since its founding in 1919, the Yamato Group has created a large number of services that were unprecedented in their time, starting with TA-Q-BIN. By doing so, the Group has established itself as a corporate group that serves as a crucial part of social infrastructure. Recently, there have been major changes in the business environment surrounding Yamato and the spread of COVID-19 has accelerated changes to people's lifestyles and the structure of the logistics industry. Accordingly, the active participation of corporations in resolving social and environmental issues is becoming increasingly important to the achievement of a sustainable society.

Under these circumstances, in April 2021 the Yamato Group launched a new Group management structure that focuses on Yamato Transport, which centralizes the diverse management resources of each Group company. Additionally, the Yamato Group is working to provide comprehensive value that meets the needs of customers and society to transform the supply chain in response to changes to people's lifestyles and the distribution structure based on the medium-term management plan "One Yamato 2023," which is set to conclude at the end of the fiscal year ending March 31, 2024. Through these efforts, we will contribute to the creation of an enriched society, a goal laid out in our Management Philosophy, and realize sustainable growth and the improvement of corporate value.

Contents

16 DESTINATION OF ONE YAMATO

01 VALUE CREATION BY THE NEW YAMATO GROUP

01 The Yamato Group's Important Role as

a Part of Social Infrastructure/Editorial Policy

1. Renewal of the Group's Management Structure

1. Creation of New Innovations

1. Strengthening of Sustainable Management

1. Group Corporate Philosophy

16 Message from the President

20 Message from the Chief Financial Officer

22 Medium-Term Management Plan "One Yamato 2023"

24 Creation of the "EC Ecosystem"

28 Transformation into a Partner That Supports the Entire Supply Chain

32 Promotion of Digital Strategies for the Shift to Data-Driven Management

10	Value Creation Process	34	Strengthening of Sustainable Management

1. Overview of the New Yamato Group

1. Performance Highlights

36 Sustainable Medium-Term Plans 2023

38 Environmental Strategies for Realizing a Sustainable Society

42 Human Resource Management That Supports the Shift to an "Innovating Delivery Business"

45 Measures for Safety and Peace of Mind That Support Sustainable Growth

Forward-Looking Statements

This integrated report contains forward-looking statements concerning Yamato Holdings' future plans, strategies, and performance. These statements represent assumptions and beliefs based on information available at the time this report was created. Furthermore, forward-looking statements are subject to a number of risks and uncertainties that include, but are not limited to, economic conditions, customer demand, foreign currency exchange rates, tax laws, and other regulations. Yamato Holdings therefore cautions readers that actual results may differ materially from these predictions.

VALUE CREATION BY THE NEW YAMATO GROUP

Commenced Use of New Symbol and Advanced Logo

From April 2021, we commenced the use of our new Kuroneko symbol and advanced logo, which symbolize our commitment to providing new value.

New Kuroneko Symbol (Corporate Symbol) Without changing the thought behind this symbol of Yamato's friendly and reliable services, the design has been refined into a more future-oriented design that expresses Yamato's intention to further evolve the services it has continuously improved day after day while integrating its activities with community, urban, and regional environments in a more harmonious manner.

Advanced Logo

This is a new advanced logo that expresses and symbolizes the Group's vision and proactive, innovative approach to addressing the challenges facing today's society and businesses. The Yamato Group will combine the expertise and networks it has cultivated to date with new ideas, technolo- gies, and partnerships to create new services and businesses.

48 CORPORATE GOVERNANCE

48 Governance Roundtable between the Board of Directors and Outside Directors

54 Corporate Governance

62 Directors / Audit & Supervisory Board Members / Management System

100 COMPANY INFORMATION

1. Global Network
2. Corporate Data / Stock Information

66 FINANCIAL SECTION

1. Ten-YearSummary and Business Highlights

1. Consolidated Balance Sheet

1. Consolidated Statement of Income
2. Consolidated Statement of Comprehensive Income
3. Consolidated Statement of Changes in Equity
4. Consolidated Statement of Cash Flows
5. Notes to Consolidated Financial Statements

1. Independent Auditor's Report

Editorial Policy

Having built up long-standing relationships of trust with all of its many and varied stakeholders, the Yamato Group discloses not only information of a legal nature but also information considered necessary for those stakeholders. The Yamato Group adopted the policy that such information shall be conveyed promptly and accurately as well as fairly and equitably. Conveying information, including that of a non-financial nature, on such aspects as management strategies, business overviews, and ESG activities, this integrated report is intended to deepen the reader's comprehensive understanding of the Yamato Group. Please visit our website for more detailed information.

Guidelines Referenced

• Ministry of Economy, Trade and Industry, Guidance for Integrated Corporate Disclosure and Company- Investor Dialogue for Collaborative Value Creation
• International Integrated Reporting Council (IIRC), International Integrated Reporting Framework

YAMATO HOLDINGS CO., LTD. 001 Integrated Report 2021

VALUE CREATION BY THE NEW YAMATO GROUP

Renewal of the Group's Management Structure

A Group Management Structure

That Focuses on Yamato Transport,

Which Centralizes Diverse

Management Resources(From April 2021)

Why Change?

The primary reason for commencing these reforms is that the Yamato Group's strategies, management systems, and organizational and corporate culture centered on TA-Q-BIN do not fully address customer and social needs regarding the rapidly changing business environment and steadily worsening social issues.

Business Environment / Social Issues

• Diversification of customer expectations and needs

• Rapid progress of EC (e-commerce) adoption in various industries
• Declining population and decaying regional infrastructure

• Declining working population

• Climate change and resource scarcity

• Further acceleration of the shift toward EC in all industries due to the COVID-19 pandemic

Lifestyles: Further growth of EC and shift to omni-channel approaches, including non-face-to-face interactions

Logistics structure: Total optimization of inventory and

supply routes

Issues with the Management Structure

Strategy

Management

structure centered

on TA-Q-BIN

Management	Organizational
systems	and corporate
	culture

Strategy

Currently, TA-Q-BIN alone unable to accommodate rising demand from the EC market and corporate logistics

Management	Organizational
Systems	and Corporate
Weak management	Culture
structure for quick	The Yamato
decision-making	Group's sound
due to depen-	culture of "inclusive
dence on individual	management" no
skills based on	longer practiced
intuition and
experience

002	YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

VALUE CREATION BY THE NEW YAMATO GROUP

From April 2021, we began promoting our medium-term management plan "One Yamato 2023," which covers the period from the fiscal year ending March 31, 2022 to the fiscal year ending March 31, 2024, based on our new Group management structure that focuses on the new Yamato Transport, which centralizes the diverse management resources of each Group company. We will proactively face the needs of customers and society and make the lives of individual customers more convenient while supporting the overall management of corporate clients, thereby becoming the "best partner of both individual and corporate customers." Accordingly, we are working to implement the main initiatives set out in this plan.

What Is the Purpose of the Change?

We aim to proactively meet the needs of customers and society and make the lives of individual customers more convenient while supporting the overall management of corporate clients, thereby becoming the "best partner of both individual and corporate customers."

Retail Business Division

Corporate Business Division

Global SCM Business

Division

EC (E-Commerce) Business

Division

Yamato will offer innovative solutions to customers by combining its various management resources throughout the Yamato Group.

Transport Function Division

Digital Function Division

Platform Function Division

Professional Service Function Division

New Organizational System Beginning from April 2021

Yamato Transport Co., Ltd.

Yamato Holdings Co., Ltd.

President

Corporate Division

Yamato Holdings Co., Ltd.

Yamato System

Delivery

Retail Business Unit

Corporate Business Unit

Development Co., Ltd.

Business Division

Business Division

BIZ-Logistics

Retail

Corporate

Global SCM

EC

Financial

Yamato Autoworks Co.,

e-Business

Transport Function Division

Ltd.

Home Convenience

Digital Function Division

etc.

Autoworks

Platform Function Division

Other Services

Professional Service Function Division

Note: On January 17, 2022, the Company carried out the partial transfer of shares held by Yamato Home Convenience Co., Ltd. As a result, Yamato Home Convenience Co., Ltd. has changed from a consolidated subsidiary to an equity-method affiliate.

YAMATO HOLDINGS CO., LTD. 003 Integrated Report 2021