Presentation[PDF:1.44MB]

Yamato Group

Overview of Consolidated Results

＜3rd Quarter of Fiscal Year Ending March 2022＞

February 10, 2022

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1．Structural reforms in Medium-term Management Plan "One YAMATO 2023"

Integrate the 9 Group companies, and reallocate the aggregate management resources from the "Customers' Perspective".

Promote structural reform to provide value

covering the entire business process of our customers

Steady progress in structural reform based on

Medium-term Management Plan "One YAMATO 2023"

• Creation of an "EC ecosystem"

→Establish a new EC logistics network to accommodate needs from the growing EC market and achieve sustainable growth of Yamato

• Provide solutions that support the entire supply chain

→Strengthen account management and sales, in order to maximize value proposition to corporate customers

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2．Establishing an "EC logistics network"

・Optimizing the allocation of EAZY CREW, in charge of EC deliveries, since the 2Q 2022

・Providing service through appropriate operations, and supporting the growth of EC demand, including in December

• Establishing the EAZY CREW structure

No. of parcels (incl. Nekopos) in December
（1,000 parcels）	+3.3%
300,000
+18.6%

・Accelerated the building of the EAZY CREW structure since FY 2021/3, enhancing capacity

・Separate the deliveries of the rapidly growing EC parcels from the sales drivers, thereby maintain the service quality while the sales drivers focus on pick-up and sales

250,000

200,000

150,000

100,000

December	December	December	December	December
FY 2018/3	FY 2019/3	FY 2020/3	FY 2021/3	FY 2022/3

 Optimizing the allocation of EAZY CREW	（1,000 parcels）
・Since the 2Q 2022, redefined the deployment areas of
	140,000
EAZY CREW, and used the existing TA-Q-BIN network for	120,000
100,000
areas where the cost is not fit		80,000
	60,000
・Promoting the optimal allocation between the existing		40,000
	20,000
network and EAZY CREW		0

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EAZY volume & EAZY CREW headcount

	EAZY CREW headcount			EAZY volume	（No. of people）
							20,000
							18,000
							16,000
							14,000
							12,000
							10,000
							8,000
							6,000
							4,000
							2,000
							0
1Q	2Q	3Q	4Q		1Q	2Q	3Q
	FY 2021/3				FY 2022/3	２

3．Establishing the "EC logistics network"

Promote the establishment of the "EC logistics network" from the 2Q 2022/3, and expand

the capacity of the network with a different cost structure（cover approx. 13％* of total volume）

*For the month of Dec 2021

• Build a network focused on EC with a different cost structure

・Simplify operational processes

・Efficient sorting and transportation focused on EC parcels

• A network that can flexibly cope with demand fluctuations

・Resource allocation based on customer demand

・Making delivery cost variable, through strengthening of partnerships

• Hybrid network, adjusted by parcel density
  ・Build EC logistics network only in urban areas with high density

Image of EC logistics network

4 in Kanto, 1 in Kansai

※Handles EC parcels of 11 sorting terminals

(as of end of Dec 2021)

・Use existing TA-Q-BIN network in other areas

Ratio of EC logistics network VS total volume

→Secure capacity for growing EC demand and secure profit

→Separate EC parcels from TA-Q-BIN network (urban areas) and provide high value-add services to individuals and corporates customers

	approx.	20%
20%
13%
10%
0%

December FY 2022/3 (results)

March FY 2024/3 (forecast)

3

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4．Optimization of "Existing Network"

Under new execution structure from Feb 1st, optimize sorting and transportation

operations of the "Existing Network", separating the EC parcels

• Optimization of sorting and transportation operations in progress

（Millions of Yen）Outsourcing expenses*1 for sorting and transportation（Yen）

80,000	Cost to be optimized*2 120.0
	11.2bn yen

・As we establish the EC logistics network with accelerated	60,000
speed, the optimization of sorting & transportation operations
of the existing network after separating the EC parcels is still	40,000
under way

• Optimize operations by managing based on regions as20,000

well as headquarters

0

・Pursue overall optimization for trunk-route transportation by the headquarters, consolidating transportation and making vehicle allocation more efficient

	6.5bn yen	100.0
2.6bn yen		80.0
		60.0
		40.0
		20.0
		0.0

1Q	2Q		3Q
Outsourcing of sorting and				Outsourcing of sorting and
transportation in 2021/3				transportation in 2022/3
Cost per parcel*3				Cost per parcel*3
in 2021/3				in 2022/3

・Delegate authority and responsibility to each region for regional operations and intra-regional transportation, and strengthen control by region based on workload

・Not to slow down the pace of building the "EC Logistics Network", optimize operations of existing network, and lower "cost per parcel"

*1 Extracted TA-Q-BIN sorting and transportation cost of Yamato Transport, from operating outsources expenses, other committion expenses and vehicle hiring expenses

*2 Year-on-year difference in expense - (Year-on-year difference in volume X cost per parcel in the previous year)

*3 Outsourcing expenses for sorting and transportation / TA-Q-BIN volume (incl. Nekopos)

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