Translation
May 10, 2022

Consolidated Financial Results for the Year Ended March 31, 2022
<under Japanese GAAP>
Company name:
Listing:
Stock code:
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Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange
9064
https://www.yamato-hd.co.jp/
Yutaka Nagao, President
Toshizo Kurisu, Executive Officer and Vice President, Responsible for Finance
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the ordinary general meeting of shareholders: June 23, 2022
Scheduled date of the commencement of dividend payment:
June 2, 2022
Scheduled date of the submission of annual securities report:
June 17, 2022
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Operating revenue

Operating profit

For the year ended Millions of yen% Millions of yen
March 31, 2022
1,793,618
5.8
77,199March 31, 2021
1,695,867
4.0
92,121(Note) Comprehensive income:For the year ended March 31, 2022:
For the year ended March 31, 2021:
Basic earnings per
share(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Diluted earnings
per share%
Millions of yen%(16.2)
84,330(10.3)
106.1
94,019131.4
47,276 million yen ((35.5)%)
73,292 million yen (324.0%)

Return on equity

Ratio of ordinary
profit to total assets

Millions of yen
55,95656,700

%
(1.3)
154.0

Ratio of operating
profit to operating
revenue

For the year ended
Yen
Yen
%
%
%
March 31, 2022
151.03
—
9.6
7.7
4.3
March 31, 2021
151.55
—
10.0
8.6
5.4
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2022: (242) million yen
For the year ended March 31, 2021: (766) million yen(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations from the beginning of the first quarter of the consolidated fiscal year ended March 31, 2022, and figures in the
consolidated operating results for the fiscal year ended March 31, 2022, are those after applying the accounting standard and relevant
revised ASBJ regulations.

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As ofMillions of yen
Millions of yen%
Yen
March 31, 2022
1,086,854
598,23354.3
1,611.34
March 31, 2021
1,089,991
584,28752.9
1,553.45(Reference) Equity:
As of March 31, 2022:
590,542 million yen As of March 31, 2021:
576,367 million yen(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations from the beginning of the first quarter of the consolidated fiscal year ended March 31, 2022, and figures in the
consolidated financial position as of March 31, 2022, are those after applying the accounting standard and relevant revised ASBJ
regulations.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

For the year ended

Millions of yen

Millions of yen

Millions of yen

Millions of Yen

March 31, 2022

52,016(58,943)(54,456)

180,603

March 31, 2021

123,92144,078(123,247)

241,284

2.

Dividends
Annual dividendsFirstquarter
Fiscal 2021
Fiscal 2022
Fiscal 2023
(Forecast)3.

Secondquarter

Third
quarter

Fiscalyear-end

Total

Yen
—
—

Yen
16.00
23.00

Yen
—
—

Yen
30.00
23.00

Yen
46.00
46.00

—

23.00

—

23.00

46.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
17,08916,985

%
30.4
30.5

%
3.1
2.9

29.3

Consolidated earnings forecasts for fiscal year 2023 (from April 1, 2022 to March 31, 2023)
Operating revenue

Half year
Full year

Millions of yen
874,000
1,820,000(Percentages represent year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share

Operating profit
%
1.0
1.5

Millions of yen
31,00091,000

%
(2.2)
17.9

Millions of yen
31,00091,000%(16.0)
7.9

Millions of yen
19,00057,000

%
29.9
1.9

Yen
52.40
157.26* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Yesb. Changes other than a:Yesc. Changes in accounting estimates:
Yes
d. Restatement:
None(Note) For details, please see “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to consolidated
financial statements (Changes in accounting policies)” on page 22 of the attached materials to the financial results report.

(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2022:
388,575,592 shares
As of March 31, 2021:
388,575,592 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2022:
22,084,421 shares
As of March 31, 2021:
17,550,515 sharesc. Average number of shares during the period
For the year ended March 31, 2022:
370,487,598 shares
For the year ended March 31, 2021:
374,149,762 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please see “3. Consolidated
Financial Statements and Significant Notes Thereto, (5) Notes to consolidated financial statements (Per share information)” on
page 28 of the attached materials to the financial results report.

*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain

assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various
reasons. For points to note when using such assumptions and financial projections, please see “1. Overview of Operating Results andOthers, (4) Future outlook” on page 8 of the attached materials to the financial results report.
• The Company plans to post supplementary materials on financial results on the Company’s website promptly after the announcement of thefinancial results.

Attached Materials
Index
1. Overview of Operating Results and Others .............................................................................................................. 2(1) Overview of operating results for the fiscal year ended March 31, 2022 ........................................................... 2(2) Overview of financial position for the fiscal year ended March 31, 2022 ........................................................... 8(3) Overview of cash flows for the fiscal year ended March 31, 2022 ..................................................................... 8(4) Future outlook.................................................................................................................................................... 8(5) Operational and financial issues to be addressed ............................................................................................. 8
2. Fundamental Approach to Selection of Accounting Standards............................................................................... 10
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 11(1) Consolidated balance sheet ............................................................................................................................ 11(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 14(3) Consolidated statement of changes in equity .................................................................................................. 17(4) Consolidated statement of cash flows ............................................................................................................. 19(5) Notes to consolidated financial statements ..................................................................................................... 21(Notes to premise of going concern)................................................................................................................ 21(Significant matters forming the basis of preparing the consolidated financial statements)............................. 21(Changes in accounting policies) ..................................................................................................................... 22(Segment information, etc.) ............................................................................................................................. 23(Per share information) .................................................................................................................................... 28(Important subsequent matters) ...................................................................................................................... 28
4. Others .................................................................................................................................................................... 29
Operating revenue by segment .............................................................................................................................. 29-1-

1. Overview of Operating Results and Others(1) Overview of operating results for the fiscal year ended March 31, 2022
During the consolidated fiscal year ended March 31, 2022, there were signs of improvement in the economic
sentiment, due to the gradual resumption of economic activity following the full lifting of the novel coronavirus
disease (COVID-19) state of emergency declarations. However, the outlook for full-scale economic recovery
remains unclear, due to global supply chain disruptions, the weakening of the yen, high crude oil prices, as wellas the instability in international affairs leading to the rise in natural resource prices.
Meanwhile, COVID-19 has accelerated growth in the e-commerce domain across all industries amid a scenario
of changes in consumer behavior and lifestyles brought about by developments such as companies promoting
telework arrangements and a shift to online services in the fields of medicine and education.
Under such circumstances, the Yamato Group embarked on a new Group management structure centered on
the “New Yamato Transport,” which combines management resources of our respective Group companies, withthe aim of sustainably increasing its corporate value through contribution to the creation of an enriched society
as stated under its Management Philosophy. In addition, we took steps to furthermore provide comprehensive
value by meeting the needs of our customers and society by transforming supply chains in response tochanging lifestyles and changing distribution structure, based on the medium-term management plan, “OneYamato 2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year.
Our consolidated financial results for the full year ended March 31, 2022 are as follows:(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

Fiscal year ended
March 31, 2021
1,695,867
92,121
94,019Fiscal year ended
March 31, 2022
1,793,618
77,19984,33056,70055,956

ChangeGrowth (%)

97,750(14,921)(9,689)5.8(16.2)(10.3)

(744)

(1.3)

For the consolidated fiscal year ended March 31, 2022, operating revenue amounted to 1,793,618 million yen,up 97,750, million yen year-on-year. This is largely attributable to our having achieved an increase in parcel
delivery volume as a result of taking action in the burgeoning e-commerce domain, and also a result of ourhaving focused on optimizing logistics for customers.
Operating expenses amounted to 1,716,418 million yen, up 112,672 million yen year-on-year. This was due tofactors that include an increase in costs associated with the promotion of the medium-term management plan
“One Yamato 2023,” such as the fact that we are in the process of optimizing operations in the e-commerce
logistics network, which we are building to accommodate the growing demand for e-commerce, and ourexisting network, along with higher unit prices of fuel. As a result, for the consolidated fiscal year ended March
31, 2022, operating profit amounted to 77,199 million yen, down 14,921 million yen year-on-year.
Ordinary profit amounted to 84,330 million yen, down 9,689 million yen year-on-year, despite the booking of
4,510 million yen in gain on investments in investment partnerships.
Profit attributable to owners of parent amounted to 55,956 million yen, and the Company was able to limit the
decline from the previous fiscal period to 744 million yen, mainly due to booking of 15,312 million yen of
disposal gains of investment securities as extraordinary income, in part due to the disposal of strategic holdingsof shares, the booking of 14,999 million yen in loss on revision of retirement benefit plan as extraordinary
losses, as well as the decline in taxable profit for the period as a result of losses from the disposal of affiliatecompany shares.
In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year
under review.
In addition, effective from the first quarter of the consolidated fiscal year ended March 31, 2022, the Company
and its domestic consolidated subsidiaries have changed from the declining-balance method to the straight-line
method as their depreciation method for property, plant and equipment in order to allocate costs in a mannerthat better reflects actual use of assets, and have accordingly modified useful lives of some vehicles.
Details are shown on “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes toconsolidated financial statements (Changes in accounting policies).”-2-

In January 2022, the Company transferred 51% of the Company’s holdings of issued common shares of
Yamato Home Convenience Co., Ltd. (“YHC”) to ART MOVING COMPANY Co., Ltd. Effective from the end of
the fiscal year ended March 31, 2022, YHC has become an equity method affiliate instead of a consolidated
subsidiary, given that the Company holds 49% of the voting rights in YHC, down from 100% previously as aresult of the transfer of shares.
Initiatives for the entire Yamato GroupThe Yamato Group has been working to address the COVID-19 pandemic, and to ensure that customers canuse TA-Q-BIN with peace of mind, we have continued to take steps that include making sure that employees
practice full hygiene management, promoting workplace vaccinations among employees who wish to be
vaccinated, and otherwise placing focus on implementing contact-free deliveries and other infection prevention
measures when interacting with customers, using our website to share information, and continuing to provide
logistics services, including TA-Q-BIN. Based on our medium-term management plan “One Yamato 2023”,
which seeks to provide comprehensive value that addresses the diversifying needs of customers and society,
we are working on the following initiatives:① Improving productivity across the entire Yamato GroupIn order to address the changing and increasingly diverse needs of our customers, we have continued
working to optimally allocate the Group’s management resources while striving to improve the accuracy ofour demand and operating amount forecasts on the basis of data analysis. In addition, we have beencoordinating efforts to the Retail Business Unit, Corporate Business Unit, Transportation Function
Division, and Digital Function Division with respect to optimizing and standardizing our delivery process bytransforming work operations, and shifting to automation and digitization, thereby increasing the amount oftime frontline personnel interact with our customers, expanding our collection and delivery capabilities,
and enabling us to make improvements in safety and quality. In September 2021, Yamato Management
Service Co., Ltd., which handles bookkeeping and accounting operations as well as personnel affairs forcompanies in the Yamato Group, was combined with Yamato Transport Co., Ltd. through an absorptiontype merger, thereby enabling us to make progress in achieving optimal allocations of specialist humanresources in our accounting and HR operations. Moreover, our Professional Service Function Division has
been operating under the “One Yamato Structure” in spearheading efforts to reduce the administrative andindirect operations workload of our frontline personnel by engaging in business process re-engineering(BPR), which has involved standardizing and digitizing such tasks.
② Growing operating revenue through growth in the corporate client domain
For our corporate clients who have been coping with changes in consumer behavior and lifestyles causedby the spread of COVID-19, we have been working to build transportation and delivery networks with theaddition of the network for corporate enterprises to the TA-Q-BIN and EAZY transportation modes, cater tothe needs for international transportation, as well as improve the profitability of our international business.
In addition, we have been continuing to tap the expanding e-commerce (EC) demand through the optimal
allocation of EAZY CREW delivery partners and our sales drivers, as well as establishing an e-commerce
logistics network with a more simple sorting, transportation and last-mile delivery operation, while also
proposing solutions in upstream domains of logistics, particularly in areas that include e-commercecompany procurement and inventory liquidation. We have also been placing focus on providing new value
in part by launching the “digital return and sending service” for e-commerce companies, which entails
shifting to digital procedures for returns of purchased merchandise, simplifying procedures in terms ofhassles encountered when purchasers would previously make a return request by telephone or in
preparing delivery slips, and making it possible to return items without the need for delivery slips fromnearby business offices, PUDO Station parcel delivery lockers, and certain convenience stores. Moreover,
we served as the official logistics services partner of the Tokyo 2020 Olympic and Paralympic Games heldfrom July to September 2021, which involved facilitating smooth and safe operations with respect tologistics design and implementation during the event by providing comprehensive logistics services in
addition to TA-Q-BIN.
③ Promoting strategies for achieving sustainable enhancement of corporate value
With the aim of sustainably enhancing our corporate value, we have engaged in initiatives under our
medium-term management plan “One Yamato 2023” plan that involve promoting data and innovation
strategies, reforming management structure and reinforcing governance, engaging in HR strategy which-3-supports “Innovating Delivery Business,” improving capital efficiency, and strengthening sustainable
management.
Our data strategy aims at preparing and making use of digital data and enhancing our digital platform tofurther sophisticate our use of data. In this consolidated fiscal year, we further enhanced the accuracy ofdemand forecasting, as well as the real-time communication platform that supports the EAZY operations.
In terms of our innovation strategy, we moved forward with initiatives to promote open innovation, which
entails discovering and collaborating with startups, as well as investing in such startups with the aim ofcreating new businesses. In this consolidated fiscal year, we invested in startups with state-of-the-art
technologies, such as cross border fashion e-commerce site operator Sixty Percent Co., Ltd., and Pale
Blue Inc. , which develops propulsion systems for ultra-small satellites that use water as fuel, through the“KURONEKO Innovation Fund”.
In terms of strengthening our governance, we are continuing our efforts such as separating management
supervision and execution, maintaining and enhancing management transparency, as well as enhancing
governance with an emphasis on decision-making speed.
When it comes to HR strategy which supports “Innovating Delivery Business,” we are using a specialist
personnel system for employees engaged in instructing safety as well as planning, and conducting
training programs through the Yamato Digital Academy with the aim of raising the digital literacy of all
employees including senior management, as well as developing digital talent as quickly as possible.
As for strengthening sustainable management, in order to strike the right balance between sustainablegrowth and the development of a sustainable society, we have been engaging in business in a mannerthat involves considering the environment and society, in part by streamlining transportation in a mannerthat involves attentively connecting people with resources and data. These efforts have been underpinnedby our dual visions, one of which is “Connect. Deliver the Future via Green Logistics.” and the other ofwhich is, “Through Co-Creation and Fair Business Activities, Help Create a Society That ‘Leaves No One
Behind.” In this consolidated fiscal year, we established an organizational structure to manage
sustainability efforts of the whole Group, as well as setting the “Yamato Group Environmental Policy”(August 2021), “Yamato Group Human Rights Policy” (December 2021), followed by “Yamato Group
Responsible Procurement Policy” and “Yamato Group Business Partner Guidelines” in January 2022.
Business strategies of each segment
The Company has changed its classification of reportable segments, effective from the first quarter of the fiscal
year under review. As such, figures for the previous corresponding period have been restated to the newreportable segments to enable segment comparisons.

 Retail Business Unit
① The Retail Business Unit provides high-quality parcel delivery services such as TA-Q-BIN and hasotherwise been working to provide value that addresses needs of our customers by drawing on the
distinctive characteristics of TA-Q-BIN in terms of its points of contact with a broad range of customers.
The business unit continued to focus on proposing solutions that draw on the Group’s management
resources in collaboration with the Corporate Business Unit, in a manner whereby frontline personnel
grasp customer changes associated with lifestyles and the business environment, thereby serving as astarting point for business of the entire Yamato Group. Moreover, it has also been working in collaboration
with the Platform Function Division, in part through efforts to provide services that make delivery and pickup more convenient, particularly the “Kuroneko Members” service, which has more than 50 million
registered members, and the “Yamato Business Members” service, which is used by more than 1.3 million
corporate clients, and also through efforts to upgrade various services other than those involving
transportation that are beneficial in terms of people’s lives and business.
② During the consolidated fiscal year ended March 31, 2022, we took steps to improve customer
convenience with respect to the “TA-Q-BIN Request by Smartphone” service, which enables customers tocomplete TA-Q-BIN sending procedures using their smartphones via a service-specific website that makes
it possible for them to take care of everything from preparing shipping labels to paying TA-Q-BIN fees.
Such improvements included expanding the list of delivery options available in terms of targeting leisureinterests through delivery options such as Golf TA-Q-BIN, Ski TA-Q-BIN, Airport TA-Q-BIN, and RoundTrip TA-Q-BIN, and also adding the online receipt download function, as well as making it possible to sendparcels from PUDO Stations without human interaction. In March 2022, we improved the convenience of-4-the various functions offered to Kuroneko Members, including better visibility and control functions of theapp and website, as well as real-time linkage and integration of customer and parcel information using the
new data platform.
③ Working in collaboration with the Transportation Function Division and Digital Function Division, the Retail
Business Unit continued to strive to improve the accuracy of demand and operating amount forecasts in
respective geographic regions, and has been endeavoring to increase productivity by appropriately
allocating personnel and by heightening efficiency of collection and delivery and of our trunk-routetransportation.
④ Operating revenue from customers amounted to 893,396 million yen, up 1.2% from the previous fiscal
year, mainly as a result of the business unit having engaged in efforts to optimally deliver parcels inalignment with diversifying needs and it having focused on acquiring parcels from small businesses incollaboration with the Corporate Business Unit. Operating revenue of the Retail Business Unit overall
amounted to 1,172,414 million yen, down 2.0% from the previous fiscal year, as a result of parcels from ecommerce companies, which had shown a dramatic increase in the previous fiscal year, having beenshifted to the Corporate Business Unit.
Although operating expenses decreased by 1.5% from the previous fiscal year largely due to lower
personnel expenses, and higher transportation costs associated with rising unit price of fuel and higherdelivery volume, operating profit decreased by 12.5% from the previous fiscal year.

 Corporate Business Unit
① The Corporate Business Unit has been seeking to provide value across entire corporate logistics supply
chains, including midstream and upstream domains of business. To such ends, the business unit has
been taking on initiatives that include planning supply chain management (SCM) strategies that contributeto customers’ business decisions, above and beyond improving and streamlining logistics operations, andfurthermore engaging in account management, which involves developing effective projects and assuming
responsibility through to management and operations.
② Moreover, for retailers who are developing physical stores and e-commerce omni-channel sales
frameworks, the business unit has been promoting efforts to optimize inventory and distribution throughcentralized management, thereby liquidating sales inventories with customers’ omni-channel operations
by combining restructured business facilities and transportation networks under the “One Yamato
Structure.” We also focused our efforts on proposal-based sales that contribute to providing
comprehensive value by engaging in integrated management encompassing all of the Yamato Group’s
logistics services for companies, extending from procurement of merchandise for stores and merchandisefor official online shopping websites, to storage, packaging and delivery.
③ For the ever-growing e-commerce domain, Yamato has been promoting sales expansion of the “EAZY”
delivery service, which enables greater purchase, delivery and pick-up convenience and safety. We arepromoting the establishment of a new e-commerce logistics network with a more simplified operation
process from sorting to the last-mile delivery. In addition, to optimize logistics for e-commerce vendors
with stores in online shopping malls, we used our partnerships with major e-commerce companies toimplement initiatives to further improve convenience and expand sales for services that completely or
partially replace operational functions from order receiving to shipping and delivery. Furthermore, thebusiness unit has also been engaging in efforts involving cross-border e-commerce amid growing
demand, such that involve achieving shorter lead times up through delivery by seamlessly linking importcustoms clearance systems with the domestic delivery network.
④ During the consolidated fiscal year ended March 31, 2022, the business unit has been actively engaging
in a focused marketing approach that has led to greater use of new TA-Q-BIN services, while tappingneeds involving items we had not previously handled such as furniture and household appliances, as well
as locally sourced rice and specialty products, as a result of our offering TA-Q-BIN delivery for larger items
to address needs for increasingly diverse and larger parcel sizes among corporate clients serving a wider
range of business domains. We also made available the “Okihai” function for registered customers, where
the driver opens the ground floor entrance to condominiums using digital keys and placing the parcel near
the customers’ front doors.
⑤ Operating revenue from customers amounted to 812,185 million yen, up 10.8% from the previous fiscal
year, mainly as a result of the business unit tapping growing e-commerce demand, promoting logistics
optimization of corporate clients, and flexible response for recovery of import-export freight movement,-5-which had been stagnant due to the global spread of COVID-19. Meanwhile, operating profit decreased
57.4% from the previous fiscal year mainly due to factors on the expenditure front in terms of an increasein transportation costs associated with higher delivery volume, as well as an increase in costs associatedwith our promotion of the medium-term management plan, “One Yamato 2023.”(Reference)(Million parcels / units)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Parcel delivery

2,096

2,275

179

8.5

Kuroneko DM-Bin

826

824

(2)

(0.2)

Category
TA-Q-BIN/TA-Q-BIN Compact/EAZY/Nekopos

ChangeGrowth (%)

 Other① During the consolidated fiscal year ended March 31, 2022, we promoted efforts to expand sales fortransportation by transport box taking advantage of its network consisting of multiple companies and forvehicle maintenance services.
② Operating revenue from customers was 88,035 million yen, up 9.9% from the previous fiscal year.
Operating profit was 16,559 million yen, up 9,570 million yen from the previous fiscal year.
ESG Initiatives① The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. Accordingly, its transport safety management practices in that regard involve drawing up its
Safety Management Regulations, building up its transport safety management systems, and formulating
fiscal year plans, all centered on respective Group companies whose main operations involve transport.
During the consolidated fiscal year ended March 31, 2022, we cultivated safety awareness, which
involved holding awards ceremonies to recognize drivers who have remained accident-free for many
years in ten locations nationwide. Due to COVID-19, we refrained from holding our “Safety Classes forChildren,” which we have been continually offering to children in day care facilities, kindergartens andelementary schools across Japan since 1998 with the aim of convey the importance of traffic safety.
② Striving to maximize corporate value is one of the top priorities of management, and we have
implemented measures and bolstered management systems in our corporate governance initiative. In
addition, we have been carrying out business activities in accordance with the law and social norms andactively promoting compliance management, based on our Group Corporate Philosophy. During theconsolidated fiscal year ended March 31, 2022, we established an organizational structure to manage
sustainability efforts of the whole Group, as well as setting the “Yamato Group Environmental Policy”(August 2021), “Yamato Group Human Rights Policy” (December 2021), followed by “Yamato Group
Responsible Procurement Policy” and “Yamato Group Business Partner Guidelines” in January 2022.
③ The Yamato Group has been working toward strengthening sustainable management upon having
formulated its Sustainable Medium-Term Environmental Plan 2023 and Medium-Term Social Plan 2023,
underpinned by the two visions of “Connect. Deliver the Future via Green Logistics” and “Through CoCreation and Fair Business Activities, Help Create a Society That Leaves No One Behind,” set forth in thetransformation plan “YAMATO NEXT100,” which serves as a grand design for management over the
medium to long term.
④ Under the “Environmental” component of the plan, we have set aggregate targets for reducing theenvironmental burden of our business activities and have otherwise set targets for areas in the logistics
industry where the Yamato Group is able to bring about widespread use of innovative technology, such aswith respect to materials and vehicles. We are furthermore working to create environmental value on thebasis of having also set targets in terms of engaging in green logistics in collaboration with diverse
partners and providing products and services that have less impact on the environment. During theconsolidated fiscal year ended March 31, 2022, we embarked on field testing of collection and delivery
operations enlisting compact battery electric vehicle (BEV) trucks featuring a walk-through, ultra-low-floor
design with the aim of introducing drivers to very practical low-carbon vehicles placing due considerationon the environment. We have continued taking action to achieve the vision of virtually zero greenhousegas emissions (in-house emissions) by 2050, established as a long-term goal. This entails efforts that-6-

include adopting collection and delivery methods that do not generate greenhouse gas emissions throughuse of hand trucks, bicycles and other such modes of transportation, and using electricity derived fromrenewable energy. Due to COVID-19, we refrained from holding our “Kuroneko Yamato Environmental
Class” sessions, which we have been continually offering nationwide since 2005, with the aim of providing
support for environmental education of children who will bear responsibilities of the next generation.
⑤ In addition, under the “Social” component of the plan, we have been continuing to take on initiatives thatinvolve developing a work environment in which we respect diverse personnel and in which employees
are able to play active roles, while also working to realize an enriched society in part by addressing social
challenges and promoting community development enlisting a co-creation approach. During theconsolidated fiscal year ended March 31, 2022, we set our sights on developing a sustainable
pharmaceutical network by embarking on field testing to assess the economic feasibility of using
unmanned drones to transport items such as pharmaceutical products required by locally-based medical
institutions and prescription medicine delivered to private residences. This involved working incollaboration with participants that include the town of Wake in Okayama Prefecture and pharmaceuticalmanufacturers and wholesalers. Going forward, maintaining our capacity for trunk-route transportation will
become a challenge, with the shortage of truck drivers. In order to build a sustainable and robust logistics
network, we announced in January 2022 that we will begin operations of cargo-only planes (freighters)from April 2024.
⑥ Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on the concept of “Creating Shared Value (CSV).” We continue to engage in various
initiatives to such ends. For instance, we have been operating our community-based Neko Support
Station locations enlisting close local ties and facilitating healthy and sustainable development of local
communities, along with lifestyles of safety and comfort among local residents. We have also been setting
up housekeeping support services, monitoring services that use “HelloLight” IoT light bulbs, consultation
services for everyday life, and holding events that enable interaction among community members.
⑦ Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people canexperience the joy of working autonomously. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.

-7-

(2) Overview of financial position for the fiscal year ended March 31, 2022
Total assets were 1,086,854 million yen as of March 31, 2022, down 3,136 million yen from the end of theprevious fiscal year. The decrease was largely attributable to the decline in cash and deposits of 58,878 million
yen, and the 44,398 million yen increase in non-current assets due to the acquisition of vehicles and software,
mainly in the Retail Business Unit.
Liabilities decreased 17,082 million yen to 488,621 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 19,000 million yen decrease in short-term borrowings and a 17,703
million yen decrease in income taxes payable, and a 22,307 million yen increase in liabilities related toretirement benefit liability resulting from a revision of the retirement bonus scheme.
Total net assets were 598,233 million yen, up 13,946 million yen from the end of the previous fiscal year. The
major factors included an increase in Profit attributable to owners of parent of 55,956 million yen, as well as the
19,689 million yen distribution of capital surplus and the acquisition of 10,002 million yen of treasury shares.
As a result, the equity ratio increased to 54.3% from the 52.9% in the previous fiscal year.
(3) Overview of cash flows for the fiscal year ended March 31, 2022
Net cash provided by operating activities amounted to 52,016 million yen, which is a decrease of 71,904 million
yen compared with the previous fiscal year. This is largely attributable to a 10,719 million yen decrease due toprofit before income taxes of 81,040 million yen, and a 25,959 million yen increase in the payment of payablesof consumption tax etc. and a 21,348 million yen increase in the payment of income tax etc.
Net cash used in investing activities amounted to 58,943 million yen, which is a decrease of 103,021 million yen
compared with the previous fiscal year. This is largely attributable to a 91,262 million yen decrease in collectionof loans receivable.
Net cash used in financing activities was 54,456 million yen. Compared with the previous fiscal year, theamount of net cash used decreased by 68,791 million yen. This is largely attributable to an increase inproceeds from borrowings of 36,500 million yen and a decrease in purchase of treasury shares of 25,650
million yen.
As a result of the above, cash and cash equivalents were 180,603 million yen as of March 31, 2022, down
60,681 million yen from the end of the previous fiscal year.
(4) Future outlook
The business environment surrounding Yamato Group is changing dramatically, with diversifying customer
needs, the population decline in rural areas, the shrinking labor population, as well as climate change.
Consumer behavior and lifestyles have changed, triggered by the spread of COVID-19, and this has
accelerated growth in the e-commerce domain across all industries. The future outlook is unclear, with global
supply chain disruptions and the rise in natural resource prices due to unstable international affairs.
Under such circumstances, the Yamato Group is accelerating initiatives to provide comprehensive value to thediversifying needs of customers and society, with the aim of reforming the supply chain in order to adapt tochanges in the distribution structure, based on the Group’s medium-term management plan, “One Yamato
2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year.
For the fiscal year ending March 31, 2023, we expect operating revenue will be 1,820.0 billion yen, with
operating profit at 91.0 billion yen, ordinary profit at 91.0 billion yen and profit attributable to owners of parent at
57.0 billion yen.
(5) Operational and financial issues to be addressed
The Yamato Group is operating in a business environment that is undergoing substantial transformation,
particularly in terms of diversifying customer needs, declining regional populations, a shrinking labor populationand climate change. Meanwhile, COVID-19 has further accelerated growth in e-commerce across all industries,
as companies address changes in consumer behavior and lifestyles caused by the pandemic. Moreover, theglobal disruption in supply chains as well as instability in international affairs causing the rise in natural-8-

resource prices is making the future outlook unclear. Amid that business environment, the Yamato Group has
been seeking to sustainably enhance its corporate value by helping to enrich our society as stated under its
Management Philosophy. To that end, on April 1, 2021, we began the shift to a Group management structure
centered on the “New Yamato Transport,” which combines management resources of our respective Group
companies, and we are promoting measures based on our medium-term management plan “One Yamato
2023,” with the fiscal year ending March 31, 2024 as its final fiscal year. We will continue to accelerate
implementation of the following initiatives based on “One Yamato 2023”, which aims to provide comprehensive
value by meeting the diversifying needs of our customers and society to transform the supply chain in responseto changing distribution structures:① Improving productivity across the entire Yamato Group
Under our medium-term management plan “One Yamato 2023”, we are optimally allocating the Group’s
management resources by improving the accuracy of our demand and operational workload forecasts inthe various regions, in order to cater to the changing and diversifying needs of our individual and corporate
customers.
We will improve productivity across our entire logistics network and achieve higher profitability byconsolidating and repositioning our commercial warehouses, sorting terminals, TA-Q-BIN Sales offices andother business locations nationwide.
We are building an e-commerce logistics network that addresses the continuously growing e-commerce
demand, especially in the urban areas, and will seek to optimize our human resource allocation as well astransportation and delivery costs between this new network and our existing network. Through the
optimization and standardization of our delivery process by transforming work operations, together with
automation and digitization, we will increase the amount of time frontline employees can spend interactingwith customers, as well as expand their collection and delivery capabilities, and we will continue ourinitiatives for better safety and higher quality. Moreover, in order to reduce the administrative operations of
our frontline employees, we will continue to promote business process re-engineering (BPR) bystandardizing our operations as well as digitizing such tasks.
② Increasing operating revenue through growth in the corporate client domain
In our medium-term management plan “One Yamato 2023”, we regard the changes in consumer behavior
and lifestyles triggered by COVID-19 as an opportunity to grow our business. We are positioning thesolution business, in which we seek to solve challenges faced by our clients throughout the entire supply
chain, beyond the business-to-consumer (B2C) domain, as a growth area to focus on.
For clients that conduct their businesses globally, the consolidated Group sales functions and ouroperations will come together to provide one-stop business solutions using the Group’s facilities including
our international offices.
For the corporate clients in various regions, we will create optimal proposals based on sales informationthat is consolidated to our headquarters, facilitating frontline sales initiatives and design solutions as well
as sophisticating our operational design, providing value across the entire supply chain by streamlining
backyard operations related to stores and e-commerce operations, reducing opportunity loss in sales andoptimizing inventories.
In order to create optimal e-commerce ecosystem solutions that enable e-commerce companies to expand
together with sellers, e-commerce users and delivery service providers, we will enhance the functions of
EAZY, which is based on real-time communications with customers. We will also enhance our solutions for
procurement, inventory management and other upstream domains for both large and small e-commercecompanies, as well as for manufacturers and retailers aiming to strengthen their e-commerce operations.
③ Promoting strategies for achieving sustainable enhancement of corporate value
Through our medium-term management plan “One Yamato 2023”, we will promote data and innovation
strategies, reform our management structure and reinforce governance, implement an HR strategy that
supports “Innovating Delivery Business”, improve capital efficiency, and strengthen sustainable
management, thereby achieving sustainable corporate value enhancement.
In terms of our data strategy, we will upgrade the core IT system, as well as continue to make use of digital
data and enhance digital platforms to use data in a more sophisticated manner. Meanwhile, in ourinnovation strategy we will continue initiatives such as finding and collaborating with startups as well as
investing in such startups with the aim of creating new businesses, through the “KURONEKO Innovation
Fund.”
We will also continue to strengthen governance by separating management supervision and execution,
maintaining and enhancing management transparency, as well as enhancing corporate governance, and-9-promote management reforms through a governance structure with an emphasis on the speed of decisionmaking.
As for our HR strategy, which supports “Innovating Delivery Business,” we will continue to establish andoperate a personnel system through which we assess every employee based on clear job descriptions. We
will also rapidly promote the development of digitally literate employees by enhancing our digital education
programs, and raising the digital literacy of all employees including senior management. Moreover, we will
create a work environment that enables our approximately 220,000 employees, which is Yamato Group’s
greatest asset, to work more comfortably. We aim to maintain a rewarding work environment thatencourages employees to take a vibrant approach to work and where human rights and diversity are
respected.
In terms of improving our capital efficiency, we will place more emphasis on capital efficiency whenmanaging our operations with a two-pronged approach through a capital strategy and a financial strategy,
in order to achieve both business growth and cost structure reform. Meanwhile, we will enhanceshareholder value through a timely and appropriate capital policy underpinned by stable dividends mindfulof the ratio of dividends on equity (DOE), with due consideration placed on growth (operating revenue),
profitability (operating profit margin), financial soundness (cash generation, balance of cash and deposits,
equity ratio levels), progress of investments, capital efficiency and other factors.
As for strengthening sustainable management, we will take further steps based on our targets for March
31, 2024, and specific actions to be taken in response to material issues, outlined in the “Sustainable
Medium-term Plan 2023 <Environment & Society>”, and pursue the sustainable development of theenvironment and society as well as our own business. In order to achieve our long-term environmental
target of zero emissions (In-house emissions) of greenhouse gases by 2050, we have set a mid-termtarget for 2030 to reduce greenhouse gas emissions by 48% compared to 2020. Going forward, we will
introduce more EV’s in our fleet, as well as electricity generated from renewable sources, and promote
initiatives to reduce greenhouse gas emissions for the entire logistics industry and society.

2. Fundamental Approach to Selection of Accounting Standards
The Yamato Group has adopted Japanese GAAP because the Group engages in business primarily in Japan.
However, we intend to give ongoing consideration to IFRS and other accounting standards aligned withupcoming expansion into other locations overseas.

- 10 -

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

241,523

182,644

Notes and accounts receivable - trade212,766－－

218,922

Accounts receivable - installment

45,64348,055Merchandise and finished goods

392

186

Work in process

117

167

Raw materials and supplies

1,770

1,861

Other

27,50830,462

Allowance for doubtful accounts(1,341)(1,456)

Total current assets

528,379

480,844367,718

376,844

Accumulated depreciation(214,421)(219,830)

Buildings and structures, net

153,296

157,013

Notes and accounts receivable – trade, and contract
assetsNon-current assets
Property, plant and equipment
Buildings and structures

Machinery and equipment

73,923

77,631

Accumulated depreciation(54,255)(56,029)

Machinery and equipment, net

19,66821,601

199,976

197,104(185,268)(171,897)

VehiclesAccumulated depreciation

14,70825,207

Land

Vehicles, net

174,140

179,650

Leased assets

36,64539,653

Accumulated depreciation(10,467)(11,286)

Leased assets, net

26,17828,366

Construction in progress

6,345

3,165

Other

56,76559,988

Accumulated depreciation(44,791)(45,114)

Other, net

11,974

14,873406,312429,878

Software

22,082

38,588

Other

7,472

7,058

Total intangible assets

29,55545,646

Total property, plant and equipment
Intangible assets- 11 -

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Investments and other assets
Investment securities

52,23147,972Long-term loans receivable

6,719

6,162

Leasehold deposits

20,121

20,519156

15

Deferred tax assets

45,62554,197

Other

2,269

3,229

Retirement benefit asset

Allowance for doubtful accounts(1,379)(1,611)

Total investments and other assets

125,744

130,484

561,612606,010

1,089,991

1,086,854

Notes and accounts payable - trade153,860

165,346

Short-term borrowings

34,00015,000Total non-current assets
Total assets
Liabilities
Current liabilities

Lease obligations

5,054

4,850

Income taxes payable

32,09914,395

Deferred installment income

4,781

4,714

Provision for bonuses

40,17338,942Other

119,401

109,558

Total current liabilities

389,369

352,807

26,09826,038Non-current liabilities
Lease obligations
Deferred tax liabilities

5,194

1,913

Retirement benefit liability

71,834

94,141

Other

13,207

13,719Total non-current liabilities

116,334

135,814505,704

488,621

Total liabilities- 12 -

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Net assets
Shareholders’ equity
Share capital

127,234

127,234

Capital surplus

36,81336,813Retained earnings

431,571464,494

Treasury shares(39,549)(49,551)

Total shareholders’ equity

556,070

578,991

Valuation difference on available-for-sale securities

15,883

11,498Foreign currency translation adjustment(1,316)(513)

Remeasurements of defined benefit plans

5,730

565

Total accumulated other comprehensive income

20,297

11,551

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets- 13 -

7,919

7,690

584,287

598,233

1,089,991

1,086,854

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Operating revenue

1,695,867

1,793,618

Operating costs

1,538,524

1,654,085

Operating gross profit

157,342

139,532

29,12327,498Provision for bonuses

1,256

1,084

Retirement benefit expenses

1,197

711

Commission expenses

13,314

10,895Computer expenses

5,496

8,398

Taxes and dues

Selling, general and administrative expenses
Personnel expenses

10,317

10,133

Provision of allowance for doubtful accounts

715

815

Depreciation

3,015

2,529

Other

3,237

2,061

Total selling, general and administrative expenses

65,22062,333

92,121

77,199Interest income

222

192

Dividend income

932

1,369

Gain on sales of vehicles

238

355

Gain on investments in investment partnerships

231

4,510

Electric vehicle subsidies

656

－

Other

1,534

2,190

Total non-operating income

3,816

8,618

Interest expenses

741

785

Share of loss of entities accounted for using equity method

766

242

Other

409

459

Total non-operating expenses

1,917

1,487

94,01984,330Gain on sales of non-current assets

712

3

Gain on sales of investment securities

38

15,312Gain on liquidation of subsidiary

－

1,210

Gain on transition of retirement benefit plan

－

1,419

Penalty income

124

55

Other

100

37

Total extraordinary income

975

18,038Operating profit
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income- 14 -

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Extraordinary losses
Loss on retirement of non-current assets

409

360

Impairment loss

876

2,420

Loss on sale of investment securities

－

3,104

Loss on valuation of investment securities

372

48

Loss on revision of retirement benefit plan－

14,999Provision of allowance for doubtful accounts

363

190

Loss associated with measures to address COVID-19

1,163

－

50

206

3,235

21,328

Profit before income taxes

91,75981,040

Income taxes-current

38,25129,293

Income taxes-deferred(3,426)(5,324)

Total income taxes

34,82523,968

Profit56,93457,071233

1,115

56,70055,956

Other
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 15 -

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2021
ProfitFiscal year ended
March 31, 2022

56,93457,071

Valuation difference on available-for-sale securities

7,926(5,415)

Foreign currency translation adjustment

(994)

793

Remeasurements of defined benefit plans, net of tax

9,421(5,282)

3

108

16,357(9,795)73,29247,276Comprehensive income attributable to owners of parent

72,84947,210Comprehensive income attributable to non-controllinginterests

442

66

Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to- 16 -

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

441,746(54,770)551,024

Changes during period
Dividends of surplus(15,959)(15,959)

Profit attributable to ownersof parent

56,70056,700Purchase of treasury shares
Cancellation of treasury
shares(50,915)(35,694)(35,694)

50,915–

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period––(10,175)

15,221

5,046

127,234

36,813

431,571(39,549)

556,070

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

8,157

(317)

(3,692)

4,148

7,662

562,835

Changes during period
Dividends of surplus(15,959)

Profit attributable to ownersof parent

56,700Purchase of treasury shares(35,694)

Cancellation of treasury
sharesNet changes in items otherthan shareholders’ equity

–
7,726

(999)

9,422

16,148257

16,405

Total changes during period

7,726

(999)

9,422

16,148257

21,452

Balance at end of period

15,883(1,316)

5,730

20,297

7,919

584,287- 17 -

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

127,234

Retained earnings

36,813

431,571

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equityTreasury shares(39,549)

556,070(3,343)
127,234

36,813(3,343)428,228(39,549)

552,727

Changes during period
Dividends of surplus(19,689)(19,689)

Profit attributable to ownersof parent

55,95655,956

Purchase of treasury shares
Disposal of treasury shares0(10,002)(10,002)

0

0

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–

036,266(10,002)26,263

127,234

36,813

464,494(49,551)

578,991

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

15,883(1,316)

5,730

20,297

7,919

584,287(229)(3,572)

7,689

580,714

Cumulative effects ofchanges in accounting
policies
Restated balance

15,883(1,316)

5,730

20,297

Changes during period
Dividends of surplus(19,689)

Profit attributable to ownersof parent

55,956

Purchase of treasury shares(10,002)

Disposal of treasury shares0

Net changes in items otherthan shareholders’ equity(4,384)

Total changes during period
Balance at end of period

1803(5,164)(8,745)(4,384)803(5,164)(8,745)

1

17,51911,498(513)

565

11,551

7,690

598,233- 18 -(8,744)

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes

91,75981,040Depreciation

48,89735,570

Impairment loss

876

2,420

Increase (decrease) in retirement benefit liability

1,941

21,822

Increase (decrease) in provision for bonuses

4,375

(757)

Interest and dividend income(1,154)(1,561)

Interest expenses

745

785

Share of loss (profit) of entities accounted for using
equity method

766

242

Loss (gain) on sales of non-current assets

(663)

0

Loss on retirement of non-current assets

409

360

Loss (gain) on sales of investment securities(38)(12,208)

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables

372

48

(24,966)(13,433)

Decrease (increase) in inventories

1,516

144

Increase (decrease) in trade payables

10,026

11,536

Other, net

13,900(28,261)

Subtotal

148,767

97,748

1,285

1,784

Interest and dividends received
Interest paid

(741)

(778)

Income taxes paid

(25,389)(46,738)

Net cash provided by (used in) operating activities

123,92152,016

Payments into time deposits(397)(2,040)

Proceeds from withdrawal of time deposits

730

270

Purchase of property, plant and equipment(32,074)(40,778)

Proceeds from sales of property, plant andequipment

2,083

348

Purchase of investment securities(793)(5,690)

Proceeds from sales of investment securities

99

18,872

Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation(484)(7,313)

Loan advances(4,783)(5,574)

Collection of loans receivable

97,819

6,556

Other payments(19,228)(27,945)

Other proceeds

1,105

4,351

Net cash provided by (used in) investing activities

44,078(58,943)

Cash flows from investing activities- 19 -

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(50,000)(5,000)

Repayments of lease obligations(5,903)(5,662)

Repayments of long-term borrowings(5,500)(14,000)

Redemption of bonds(10,000)–

Purchase of treasury shares(35,707)(10,057)

Dividends paid

(15,950)(19,670)

(188)

(70)

2

5

(123,247)(54,456)

(129)

701

Net increase (decrease) in cash and cash equivalents

44,622(60,681)

Cash and cash equivalents at beginning of period

196,662

241,284

Cash and cash equivalents at end of period

241,284

180,603

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents- 20 -

(5) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 30
Names of major consolidated subsidiaries:
Yamato Transport Co., Ltd.
Okinawa Yamato Transport Co., Ltd.
YAMATO TRANSPORT U. S. A., INC.
YAMATO ASIA PTE. LTD.
YAMATO INVESTMENT (HONG KONG) LIMITED YAMATO BOX CHARTER CO., LTD
Yamato System Development Co., Ltd.
Yamato Autoworks Co., Ltd.
Effective from the consolidated fiscal year ended March 31, 2022, Yamato Global Express Co., Ltd.,
Yamato Logistics Co., Ltd., Yamato Global Logistics Japan Co., Ltd., Yamato Packing Service Co., Ltd.,
Yamato Packing Technology Institute Co., Ltd., Yamato Financial Co., Ltd., and Yamato Management
Service Co., Ltd. have been excluded from the scope of consolidation given that they have ceased toexist as a result of an absorption-type merger in which Yamato Transport Co., Ltd. is the surviving
company.
In addition, YAMATO (CHINA) CO., LTD. and Yamato Home Convenience Co., Ltd. has also been
excluded from the scope of consolidation due to the conclusion of liquidation and partial transfer ofshares, respectively.
(2) Non-consolidated subsidiaries, etc.
OTL ASIA SDN. BHD. and certain other subsidiaries are not included within the scope of consolidation.
The total assets, operating revenue, profit, and retained earnings of these non-consolidated subsidiaries
are immaterial and, even taken together as a group, they do not exert a significant influence on the
consolidated financial statements.
2.

Application of equity method(1) Number of affiliates accounted for using equity method: 22
Names of major equity method affiliates:
Packcity Japan Co., Ltd.
GDEX BERHAD
Yamato Home Convenience Co., Ltd.
Yamato Lease Co., Ltd.
Effective from the fiscal year under review, Yamato Home Convenience Co., Ltd. has been included in thescope of the equity method, having been excluded from the scope of consolidation upon partial transfer of
its shares. SCG YAMATO EXPRESS CO., LTD. and GUANGZHOU WISEPOWER TRANSPORTATION &DISTRIBUTION GROUP CO., LTD. were excluded from the scope of the equity method as their shareswere disposed.
(2) Non-consolidated subsidiaries and affiliates not accounted for using equity method
Entities not subject to the equity method such as OTL ASIA SDN. BHD. and certain other nonconsolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliatedcompanies are excluded from the scope of entities accounted for using the equity method because they
do not exert a significant influence on the consolidated financial statements even when taken together asa group, given immateriality of their profit, retained earnings and other financial results corresponding tothe ownership held by the Company.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

- 21 -

(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year underreview, and it has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services. As such, whereas
revenue derived from certain business transactions including transportation income involving the YamatoGroup’s mainstay service, TA-Q-BIN, was previously recognized when parcels, etc. were consigned to TA-QBIN, the Company will now recognize such revenue upon fulfillment of performance obligations.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject
to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had
been applied to periods prior to the beginning of the first quarter of the fiscal year under review was added to or
deducted from the opening balance of retained earnings of the first quarter of the fiscal year under review, andthus the new accounting policy was applied from such opening balance. However, by applying the method set
forth in item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue
Recognition, modifications to contracts carried out prior to the beginning of the first quarter of the fiscal year
under review were accounted for based on the contractual terms after all contract modifications were reflected.
Consequently, this cumulative effect was added to or deducted from the opening balance of retained earningsof the first quarter of the fiscal year under review.
“Notes and accounts receivable - trade” which used to be booked under current assets of the consolidatedbalance sheet as of the end of the previous fiscal year has been included in “Notes and accounts receivable trade, and contract assets” under current assets from the consolidated balance sheet as of this fiscal year. In
accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for
Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new
approach to presentation.
For the consolidated fiscal year ended March 31, 2022, as a result of this change, operating revenue
decreased by 2,081 million yen, and operating costs decreased by 1,997 million yen, while operating profit,
ordinary profit and profit before income taxes each decreased by 84 million yen. In addition, retained earnings
as of the beginning of the fiscal year under review decreased by 3,343 million yen.
The impact on per share information is stated in “3. Consolidated Financial Statements and Significant Notes
Thereto, (5) Notes to consolidated financial statements (Per share information)”.
Application of Accounting Standard for Fair Value Measurement
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year underreview. In the future, the Company will furthermore apply new accounting policy stipulated by the AccountingStandard for Fair Value Measurement and relevant ASBJ regulations subject to the transitional treatment
provided for in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). In addition, thisapplication has no impact on the consolidated financial statements is immaterial.
Changes in accounting policies which are difficult to distinguish from changes in accounting estimates andchanges in accounting estimates
Changes in depreciation method for property, plant and equipment and changes in useful life
Effective from the first quarter of the fiscal year under review, the Company and its domestic consolidated
subsidiaries have changed to the straight-line method as their depreciation method for property, plant andequipment (excluding leased assets) from the declining-balance method previously (however, the straight-line
method has been adopted for buildings acquired on or after April 1, 1998 (excluding facilities attached tobuildings) and for facilities attached to buildings and structures acquired on or after April 1, 2016). Overseas
consolidated subsidiaries have been using the straight-line method thus far.
Based on its medium-term management plan, “One Yamato 2023,” the Yamato Group has transitioned to its“One Yamato” management structure, which has involved transforming to a fully optimized organization
structured according to customer segments and further accelerating management. To such ends, Yamato
Transport Co., Ltd. carried out absorption-type mergers and absorption-type company splits involving sevenGroup companies in April 2021. In so doing, we were able to review our use of property, plant and equipment inJapan.

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We consequently changed to the straight-line method, upon having deemed that the straight-line method of
allocating costs more rationally reflects actual use of assets given that we expect our asset use in Japan toremain consistent.
In addition, the Company and its domestic consolidated subsidiaries conducted surveys on actual use ofproperty, plant and equipment, on the occasion of reviewing changes to the depreciation method of property,
plant and equipment. Effective from the first quarter of the fiscal year under review, they consequently revised
useful life figures of some vehicles based on more realistic, economically feasible forecast periods. This change
will apply into the future.
As a result, operating profit, ordinary profit, and profit before income taxes for the fiscal year ended March 31,
2022 are each 13,075 million yen increased more than would have been the case using the previous method.
(Segment information, etc.)
1. Segment information(1) Summary of reportable segment
The reportable segments of the Yamato Group are constituent units of the Yamato Group whose separate
financial information can be obtained. The Board of Directors of the Company periodically examines thesesegments to decide on the allocation of management resources and evaluate business performance.
The Yamato Group is operated through a Group management structure, under Yamato Holdings Co., Ltd.
which is a pure holding company, and manages business operations by customer segment, with the Retail
Business Unit which manages the Retail Business Divisions that provides delivery services to individuals andmid-to-small sized corporations, the Corporate Business Unit which manages the Corporate Business
Divisions, Global SCM Business Divisions and EC Business Divisions that provide transportation services etc.
to large corporations, and Others.
Accordingly, Yamato Group’s two reportable segments are the Retail Business Unit and the Corporate
Business Unit.
Type of services by reportable segment
Reportable segment
Retail Business Unit
Corporate Business Unit
OthersType of services
Small parcel delivery services for consumers and mid-to-small sized corporations
Transportation services for large corporations, planning and operation of logistics
centers, customs services, air cargo agency services
Development and operation of IT systems, car maintenance services, sales of fuel,non-life insurance agency services, cargo vehicle transportation services(2) Method of calculating operating revenue, profit/loss, assets and other items by reportable segment
The accounting method used for reported business segments complies with accounting policy that has been
adopted in preparing the consolidated financial statements.

- 23 -

(3) Information regarding the amounts of operating revenue, profit/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2021
(Millions of yen)

RetailBusiness Unit

Corporate
Business Unit

Other
(Note 1)

Total

Reconciliation(Note 2)

Amountrecorded inconsolidated
financialstatements(Note 3)Operating revenue
Operating revenue from882,536
733,190
80,1391,695,867
1,695,867–
customers
Inter-segment operating revenue
313,736
48,842
116,205
478,784(478,784)–
or transfers
Total
1,196,272
782,033
196,345
2,174,651(478,784)
1,695,867
Segment profit (loss)
50,80640,317
6,988
98,112(5,990)92,121
Segment assets (Note 4)
762,634
176,603
165,253
1,104,491(14,500)
1,089,991
OthersDepreciation
29,291
13,6394,500
47,4301,430
48,861
Investment in entities accounted
430
8,602
–
9,032
2,158
11,190for using equity method
Increases of property, plant andequipment and intangible assets
34,412
5,874
7,668
47,955
7,476
55,431(Note 4)
Notes: 1. Other includes Yamato Home Convenience Co., Ltd. (lifestyle support services), Yamato System Development Co., Ltd.
(information systems development), and Yamato Autoworks Co., Ltd. (collective vehicle management agent business fortransportation companies).
2. Adjustments made are as follows.
(1) The adjustment of negative 5,990 million yen of segment profit includes group-wide expenses which have not been allocatedto each reportable segment (general administrative expenses of the Company, which is a pure holding company) of negative
19,578 million yen, as well as eliminations of transactions among segments of 13,587 million yen.
(2) The adjustment of negative 14,500 million yen of segment assets includes eliminations of inter-segment receivables andpayables, etc. of negative 191,757 million yen and group-wide assets of 177,256 million yen not allocated to each reportablesegment.
(3) The adjustment of 2,158 million yen of investment in entities accounted for using the equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 7,476 million yen of increases of property, plant and equipment and intangible assets is the Company’s
capital investment amount.
3. An adjustment was made between segment profit and operating profit in the consolidated statement of income.
4. The segment assets and the increase in property, plant and equipment and intangible assets of the Retail Business Unit includes
the 543,671 million yen of segment assets of the Functional Divisions of Yamato Transport Co., Ltd., as well as the 18,587 million
yen increase in its property, plant and equipment and intangible assets.

- 24 -

Fiscal year ended March 31, 2022
(Millions of yen)

RetailBusiness Unit

Corporate
Business Unit

Other
(Note 1)

Total

Reconciliation(Note 2)

Amountrecorded inconsolidated
financialstatements(Note 3)Operating revenue
Operating revenue from893,396
812,185
88,035
1,793,618
1,793,618–
customers
Inter-segment operating revenue
279,017
26,090121,163426,271(426,271)–
or transfers
Total
1,172,414
838,276
209,198
2,219,889(426,271)
1,793,618
Segment profit (loss)
44,463
17,17816,55978,200(1,001)
77,199Segment assets (Note 4)
749,717
194,571
156,572
1,100,861(14,006)
1,086,854
OthersDepreciation
17,53813,264
3,811
34,615909
35,524
Investment in entities accounted
630
6,667
–
7,298
5,661
12,959for using equity method
Increases of property, plant andequipment and intangible assets
56,586
12,066
7,245
75,8982,673
78,572(Note 4)
Notes: 1. Other includes Yamato Home Convenience Co., Ltd. (lifestyle support services), Yamato System Development Co., Ltd.
(information systems development), and Yamato Autoworks Co., Ltd. (collective vehicle management agent business fortransportation companies).
2. Adjustments made are as follows.
(1) The adjustment of negative 1,001 million yen of segment profit includes group-wide expenses which have not been
allocated to each reportable segment (general administrative expenses of the Company, which is a pure holding company) ofnegative 10,384 million yen, as well as eliminations of transactions among segments of 9,382 million yen.
(2) The adjustment of negative 14,006 million yen of segment assets includes eliminations of inter-segment receivables andpayables, etc. of negative 108,626 million yen and group-wide assets of 94,619 million yen not allocated to each reportablesegment.
(3) The adjustment of 5,661 million yen of investment in entities accounted for using the equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 2,673 million yen of increases of property, plant and equipment and intangible assets is the Company’s
capital investment amount.
3. An adjustment was made between segment profit and operating profit in the consolidated statement of income.
4. The segment assets and the increase in property, plant and equipment and intangible assets of the Retail Business Unit includes
the 524,780 million yen of segment assets of the Functional Divisions of Yamato Transport Co., Ltd., as well as the 36,936 million
yen increase in its plant and equipment and intangible assets.

- 25 -

(4) Disclosure of changes, etc. in reportable segments(Changes in reportable segments)
Effective from the first quarter of the fiscal year under review, the Company has changed its classification ofreportable segments to reflect its transition to a management structure consisting of four Business Divisions(Retail, Corporate, Global SCM, and EC) and four Functional Divisions in April 2021.
The change mainly involves transition to a dual business unit structure consisting of the “Retail Business Unit” andthe “Corporate Business Unit” based on customer segments, from the previous six operating segment structure
based on categories of business at that time.
The segment information for the fiscal year ended March 31, 2021 has been prepared and presented according to
the new classification of reportable segments.
(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition, etc.” from the beginning of the firstquarter of the fiscal year under review as stated under “3. Consolidated Financial Statements and Significant
Notes Thereto, (5) Notes to consolidated financial statements (Changes in accounting policies),” and has likewisechanged its method of calculating business segment profit or loss as a result of it having changed its accounting
method for revenue recognition.
As a result, for the consolidated fiscal year under review, operating revenue and segment profit in the Retail
Business Unit were both 51 million yen less than would have been the case using the previous method; operating
revenue and segment profit in the Corporate Business Unit were 368 million yen higher and 150 million yen lower,
respectively, and; operating revenue and segment profit in Other were 2,399 million yen lower and 117 million yen
higher, respectively.
(Changes in depreciation method for property, plant and equipment and changes in useful life)
Effective from the first quarter of the fiscal year under review, the Company has changed to the straight-line
method as its depreciation method for property, plant and equipment (excluding leased assets), as stated under “3.
Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to consolidated financial statements(Changes in accounting policies).” In addition, the Company has reviewed useful lives of some vehicles. Thischange will apply into the future.
As a result, for the consolidated fiscal year under review, segment profit in the Retail Business Unit, Corporate
Business Unit and Other were 10,994 million yen, 1,735 million yen, and 345 million yen higher, respectively, thanwould have been the case using the previous method.

- 26 -

2.

Information regarding impairment losses of non-current assets by reportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Impairment
loss

Retail Business
Unit

Corporate
Business Unit

331

498

Other

Corporate or
eliminations

Total
46

876

–

Consolidated
876

Fiscal year ended March 31, 2022
(Millions of yen)
Impairment
loss

Retail Business
Unit

Corporate
Business Unit

–

700

Other
1,719

- 27 -

Corporate or
eliminations

Total
2,420

–

Consolidated
2,420

(Per share information)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net assets per share (Yen)
1,553.45
1,611.34
Basic earnings per share (Yen)
151.55151.03
Notes: 1. The Company’s shares held by the Board Benefit Trust (BBT), which is booked as the shares held in own name in theshareholders’ equity section are included in the shares held in own name that are deducted from the number of shares
outstanding as of the end of the fiscal period, when calculating net assets per share, and is included in the shares held in own
name that are deducted from the average number of shares during the period, when calculating net profit per share. The numberof shares held in own name as of the end of the fiscal periods that were deducted when calculating net assets per share was483,000 shares as of the end of the previous fiscal year, and 483,000 shares as of the end of this fiscal year. The average numberof shares held in own name during the fiscal periods that were deducted when calculating net profit per share was 322,000 shares
as of the end of the previous fiscal year, and 483,000 shares as of the end of this fiscal year.
2. Diluted earnings per share is not presented since no potential shares exist.
3. As stated in “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to consolidated financial statements(Changes in accounting policies)”, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020), and transitional measures outlined in the provisions in Article 84 of the “Accounting Standard
for Revenue Recognition”. As a result, net assets per share has decreased by 9.22 yen in this consolidated fiscal year. There is
only a minor impact on net profit per share.
4. The basis for calculating “basic earnings per share” is as follows.
Fiscal year ended
Fiscal year ended
March 31, 2021
March 31, 2022
Profit attributable to owners of parent (Millions of yen)Amount not belonging to ordinary shareholders (Millions of yen)

56,70055,956––

Profit attributable to owners of parent concerning common shares (Millions of yen)

56,70055,956

Average number of common shares during the period (Thousands of shares)

374,149

370,487(Important subsequent matters)
Not applicable.

- 28 -

4. Others
Operating revenue by segment
Business segment
IncomeRetail Business Unit

Corporate Business Unit

Other

Transportation income
Logistical support income
OthersEliminations
Total
Transportation income
Logistical support income
Other
Eliminations
Total
Transportation income
Other
Eliminations
Total
Total

Fiscal year ended
March 31, 2021
AmountRatio(Millions of yen)(%)
1,158,221
68.3
10,801
0.6
34,9492.1(321,435)(19.0)
882,53652.0
639,269
37.7
218,320
12.9
26,1161.5(150,514)(8.9)
733,190
43.2
46,9402.8
166,8179.8(133,618)(7.9)
80,1394.7
1,695,867
100.0- 29 -

Fiscal year ended
March 31, 2022
AmountRatio(Millions of yen)(%)
1,144,359
63.8
3,587
0.2
28,183
1.6(282,733)(15.8)
893,39649.8
598,306
33.4
249,637
13.9
33,022
1.8(68,780)(3.8)
812,185
45.3
50,967
2.8
176,558
9.8(139,490)(7.8)
88,0354.9
1,793,618
100.0

Change(%)(1.2)(66.8)(19.4)(12.0)
1.2
(6.4)
14.3
26.4
(54.3)
10.8
8.6
5.8
4.4
9.9
5.8