16-10, Ginza 2-chome,Chuo-ku, Tokyo
104-8125 Japan
Telephone: 81-3-3541-4141
Integrated Report 2021
"One YAMATO 2023"
Medium-Term Management Plan
Based on "YAMATO NEXT100"
Printed in Japan Published in March 2022
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
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.
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.
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.
Contents
01 VALUE CREATION BY THE NEW YAMATO GROUP
01 The Yamato Group's Important Role as
a Part of Social Infrastructure / Editorial Policy
02 | Renewal of the Group's Management Structure |
04 | Creation of New Innovations |
16 DESTINATION OF ONE YAMATO
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
48 CORPORATE GOVERNANCE
48 Governance Roundtable between the Chairman of the Board and Outside Directors
54 Corporate Governance
62 Directors / Audit & Supervisory Board Members / Management System
100 COMPANY INFORMATION
- Global Network
- Corporate Data / Stock Information
06 | Strengthening of Sustainable Management |
08 | Group Corporate Philosophy |
10 | Value Creation Process |
12 | Overview of the New Yamato Group |
14 | Performance Highlights |
32 Promotion of Digital Strategies for the Shift to Data-Driven Management
34 Strengthening of Sustainable Management 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
66 FINANCIAL SECTION
- Ten-YearSummary and Business Highlights
- Consolidated Balance Sheet
- Consolidated Statement of Income
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
- Notes to Consolidated Financial Statements
- Independent Auditor's Report
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.
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
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."
Yamato will offer innovative
Retail Business Division | solutions to customers by | Transport Function Division |
Corporate Business Division | combining its various | Digital Function Division |
management resources | ||
Global SCM Business | throughout the Yamato Group. | Platform Function Division |
Division | ||
EC (E-Commerce) Business | Professional Service Function Division | |
Division |
New Organizational System Beginning from April 2021
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 |
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 | ||||||||||||||||||||||||||||
e-Business | Transport Function Division | Co., 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.
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VALUE CREATION BY THE NEW YAMATO GROUP
Creation of New Innovations
The Shift from "Delivery" to "Innovating Delivery"
Innovations We Have Taken On To Date
VALUE CREATION BY THE NEW YAMATO GROUP
Since its founding as a delivery company in 1919, the Yamato Group has been creating services that society needs that do not yet exist. This concept, to always continue to provide even better services for customers and society, originated from our core values. We have valued this concept since
our founding, and it has led TA-Q-BIN to success and supported our growth to the present day. Going forward, the Yamato Group will contribute to the creation of a sustainable, enriched society through its mission as a social infrastructure company by creating new delivery methods that support the next generation through new innovations.
Aiming for the Creation of
New Innovations
1919Founding of Yamato Transport Co., Ltd.
In 1919, when a total of 204 trucks existed in Japan, Yamato Transport Co., Ltd. was established in the Ginza district of Tokyo with four of those trucks. The founder Yasuomi Ogura anticipated the coming era of speed and embarked on a transportation business in an era where ox- and horse-drawn carriages and wagons were the main method of transporting freight by road.
In 1923, the Company began to accept orders and delivery goods for Mitsukoshi Gofukuten. Mitsukoshi, which had been using private automobiles and covered the majority of delivery costs, made the decision after evaluating Yamato Transport's low shipping expenses, the positive working attitude of its drivers, and its high level of trustworthiness as an organization.
Social Value
Declaration of Structural Reform in "YAMATO NEXT100"
Delivery services help make our lives prosperous.
Developing new delivery services and innovating existing ones change
people's lifestyles, and even society as a whole.
1929Launch of Japan's First
Regular Route
Transport Service
In 1927, Yasuomi Ogura visited London and met with a transportation company that operated a regular transport service route to regional towns and cities. This regular transport service route entailed employees making regular rounds on carriages and picking up packages directly from the doors of households that put out signs. He had the intuition that this system would meet Japan's demand for small-lot delivery and change transportation. Accordingly, he decided to create a similar network of regular transport service routes in Japan. Yamato Transport gave tobacconists, general stores, and other vendors using their service a triangular yellow flag, which features a cherry blossom and a red letter "Y," to display prominently when they had a package to deliver. In this way, they launched a regular transport service route between Tokyo and Yokohama, which was Japan's first regular route transport service, in 1929. The network was expanded to cover the entire Kanto area at the end of 1935.
Creating new methods for transport and delivery that have never existed before
Yamato is a company of innovation. As a social infrastructure provider,
the Yamato Group's mission is to contribute to the creation of a prosperous society
by innovating delivery services. This mission is an integral element of the
Group's Corporate Philosophy.
With the recent rapid growth of the e-commerce market, delivery volumes have dramatically risen and now exceed the current capacity of the Group's delivery network. At the same time, customer needs have become increasingly diverse and Japan faces serious social issues such as a shrinking population and
a decline in local communities.
Solutions to these social issues have yet to be found, while the delivery services of the
Masao Ogura, who became president of the Company in 1971, noticed that a widely | ||
The Birth of TA-Q-BIN | held belief in the industry, that small-lot pickup and delivery is labor intensive and | |
1976 | unprofitable, was untrue. Rather than making many deliveries of small packages, it was | |
thought to be more rational and profitable to make a single large-lot delivery once. He | ||
asserted that small-lot delivery has a high unit price per kilogram and that income would | ||
increase if they handled many small-lot deliveries. Additionally, TA-Q-BIN, the concept of | ||
pickup and next-day delivery with a single phone call, was created on January 20, 1976, | ||
and a nationwide TA-Q-BIN network was completed in 1997. | ||
Following this, the Company continued to grow by supporting the businesses of | ||
corporate clients in addition to creating the concept of tebura bunka leisure (literally | ||
"empty-handed culture," or the idea of traveling without the need to carry any luggage) | ||
and a culture of ordering specialty products, to enable TA-Q-BIN to meet the diverse | ||
needs of customers. In recent years, Yamato has promoted the shift from "home delivery" | ||
to "individual delivery" amid changes to and the diversification of lifestyles. The Company | ||
has striven to pursue convenience for customers picking up packages, as well as those | ||
sending packages, by enabling customers to select how they receive packages, not just | ||
the time period for their delivery. |
future, which will serve as a foundation in the next era, require further innovation. In light of this situation, the Yamato Group will strive to innovate its delivery services and contribute to the realization of a sustainable and prosperous society going forward.
Evolving from a
"Delivery Business" to a
"Delivery Innovation Business"
As a social infrastructure provider and the pioneer of the TA-Q-BIN service,
the Yamato Group's mission is to create a sustainable and prosperous society through
innovative delivery services. By optimizing our delivery methods and working as
a united group, we will transform ourselves into the Yamato of tomorrow.
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VALUE CREATION BY THE NEW YAMATO GROUP
Strengthening of Sustainable Management
Our Aim to Sustainably Develop Society and Business by Realizing Our Two Visions
The Yamato Group's Social
and Environmental Material Issues
(Materiality)
VALUE CREATION BY THE NEW YAMATO GROUP
In January 2020, the Yamato Group formulated its grand design for its management over the medium to long term, the transformation plan "YAMATO NEXT100." As part of this plan, we established "sustain- ability initiatives under the theme 'management embodying the environment and society,'" as one of the infrastructure reforms, set forth our environmental and social visions for a sustainable future, identified important material issues (materiality), and set long-term targets, such as for virtually zero greenhouse gas emissions* by 2050.
Additionally, under our sustainable plans Medium-Term Environmental Plan 2023 and Medium-Term Social Plan 2023, formulated in January 2021, we set out specific actions to be taken to address each important material issue (materiality) and targets to be achieved by 2023 in order to realize these visions. Based on these plans, we are promoting initiatives for the sustainable development of society and business.
* In-house emissions (Scope 1 and Scope 2)
Two Visions for Realizing
a Sustainable Society
EnvironmentalEnvironmental
Energy | Atmosphere |
& Climate | |
Environmental | Environmental |
Resource | Resilience of |
Conservation | Companies |
& Waste | & Society |
Environmental Vision
Connect. Deliver the future via green logistics
The Yamato Group will further promote its vision of "Connect. Deliver the future via green logistics." By leveraging cutting-edge connections between data, people, and resources, we will increase the efficiency of transportation and provide delivery services that are better for the planet, our customers' lifestyles, and the economy. We will also support a strong, smart society by striving toward virtually zero greenhouse gas emissions and by creating business models based on sustainable resource use and consumption.
SocialSocialSocial
Labor | Human Rights | Safety |
& Diversity | & Security | |
SocialSocialSocial
Data | Supply Chain | |
Utilization | Community | |
Management | ||
& Security | ||
Social Vision
Through co-creation and fair
business activities, help create a society that "leaves no one behind"*
* To leave no one behind: Basic philosophy of the SDGs
As a social infrastructure company, the Yamato Group will contribute to improving the quality of life of various people, including employees and customers, by reducing and eliminating various inequalities and obstacles in society. We will do this by delivering goods and value to everyone through fair and efficient business processes.
By promoting digital innovation and our strengths offline, as well as co-creation with various partners, we will be a leader in solving social challenges and creating a society that leaves no one behind.
Please see Sustainable Medium-Term Plans 2023 on pages 36 and 37 for details on specific actions to be taken to address each important material issue (materiality) and targets to be achieved.
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Yamato Holdings Co. Ltd. published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2022 08:33:06 UTC.