Company Profile
Corporate Social Responsibility Report 2015
(Web edition)

Aiming to become a company
most loved and trusted by society

Table of Contents
Message from the President………………………………………

2……………………………………………

7……………………………………………………

8

The Yamato Group's CSR
Our Major Initiatives

Environment

Under the key word “Necology,”
we are creating environmentallyfriendly logistics.

……… 34

Aiming for “DAN-TOTSU”

Feature article

Building and Town Management Services … 37

Yamato Group's CSV ……………………… 12
Case Study 1
Lifestyle Support Watch-over Support

Reusing and Recycling Unwanted Articles … 41………… 15

Case Study 2
Sales Promotion and Product Delivery
Support Product Sales Support Overseas………… 18
Sales Channel Expansion

Society

We aim to earn the trust andrespond to expectations of society. ……… 45
Aiming for “DAN-TOTSU”
Business Seminar for High SchoolStudents ………………………………………………… 48

EconomyDiversity

Overview and Major Indicators of theMedium-term Management Plan
DAN-TOTSU Three-Year Plan STEP ……… 24
Governance

SafetyWith respect for human life as our
top priority, we aim to achieve“Zero Traffic Accidents.” ……………………… 25………………………………………………… 52

Governance ……………………………………………… 56

Awards & Recognition………………………………………………… 62

Third-Party Opinion ……………………………………………………… 63
Aiming for “DAN-TOTSU”

Policy for Publishing CSR Information ……………………………… 66

Ensuring Long Distance Transport Safety
Ensuring Air Cargo Safety… 28

Participation in the UN Global Compact …………………………… 67………………………… 31

1

| Message from the President |In January 2016 the Yamato Group will celebrate the 40th anniversaryof its TA-Q-BIN business. Today, TA-Q-BIN has become a ubiquitous
form of social infrastructure in Japan that is truly indispensable tosociety in a similar fashion as utilities such as electricity, water and gas.
We are well aware the major responsibilities that go along with it. Overthe years, the Yamato Group has always reviewed its businesses very
rigorously not only in terms of economics, but also safety, theenvironment and society and dedicated a great deal of efforts toWatching over elderly customers
living alone who use TA-Q-BIN

fulfilling its corporate social responsibilities (CSR). We recognize thateven greater efforts will be needed in the future because our role andpresence continues to expand as we gain more customers ininternational markets.
Since launching TA-Q-BIN, we have come up with a wide range ofrelated services including TA-Q-BIN Collect, Cool TA-Q-BIN, and Golf
TA-Q-BIN, among others. No matter the time period, we have continued
to innovate in pursuit of Creating Shared Value (CSV) that delivers both
economic and social value while solving challenges faced bycustomers, which has enabled us to continually create and launch
all-new services one after another. At the root of these efforts is the
backbone of our corporate philosophy, "for the benefit of the world andof society," which has been passed down as the founding spirit of ourcompany.

2

Revitalizing local economies byhelping to expand sales channels of
unique local specialty products

| Message from the President |Japan is faced with major challenges that include an aging society andregional depopulation. Given this situation, as our form of CSV, we are
combining the unique information technologies (IT), logistics
technologies (LT), and financial technologies (FT) of each YamatoGroup company for use by customers as a platform for solving theirchallenges. Among these, we are focusing efforts on "Project G(Government)," which seeks to solve social issues with the assistanceof local governments in providing lifestyle support, which includes
shopping assistance services and watch-over services for the elderly,and sales promotion support, which includes helping customer expand
sales channels for unique local specialty products. As of July 2015, we
had reviewed 1,198 solutions and of these 288 are now in use as
actual services. As we implement "Project G," our goal is to create
services that can serve as new forms of social infrastructure and in theprocess contribute to communities around the world.
At the same time, as of March 31, 2015 we eliminated the Kuroneko
Mail-Bin service that was used to ship catalogues and pamphlets. The
reason for this is that while the definition for "confidential
correspondence" is vague and difficult to comprehend, customers
sending "confidential correspondence" using Kuroneko Mail-Bin by
mistake were still exposed to possible punishment for violation of the
Postal Act. Actually, there were a total of 8 cases since July 2009
where customers who used Kuroneko Mail-Bin to send "confidential
correspondence" were interviewed by police or had their cases sent to
the Public Prosecutor.
Leaving customers unaware of a possible legal violation exposed to therisk of becoming suspects goes against the Yamato Group's corporate
stance and social responsibilities. Thus, we made the unfortunate
decision to eliminate the Kuroneko Mail-Bin service based on thedetermination that it would be difficult to continually balance userconvenience with a safe and secure user environment. To ensure
customers are not negatively affected by this service termination, we
have created an alternative service called Kuroneko DM-Bin and willcontinue to develop services that meet new needs, such as TA-Q-BIN
Compact and NEKOPOSU, among others, while remaining firmly
committed to our customer-first stance.

3

| Message from the President |Yamato Group Corporate Philosophy

The Yamato Group, under its long-term management plan called"DAN-TOTSU Management Plan 2019," is aiming to become "Asia'sNo. 1 solutions provider in distribution and lifestyle support" by 2019
when it will celebrate its 100th anniversary. At the same time, under our
medium-term management plan called "DAN-TOTSU Three-Year Plan
STEP," we are promoting the "Value Networking" design and thefostering of a sound corporate culture.
In recent years, the business environment in Japan and in international
markets has undergone great change, which requires we change in

In April 2015 we launched TA-Q-BIN
Compact, ideal for home delivery ofsmall parcels, and a new mail service
called NEKOPOSU

order to achieve steady growth going forward.
The "Value Networking" design concept will seek to evolve logistics
from a cost to a means for generating value by restructuring our
network in Japan and international markets in an effort to support
Japan's growth strategy through logistics restructuring that involves all
customer business segments and sizes.
In 2013, we opened Haneda Chronogate as the centerpiece of thisconcept. This facility will transform customers' businesses by providing
value-added functions such as in-house repairs, assembly, processing,4

All repair work has been centralized
at Haneda Chronogate andinformation digitized to increase
operating efficiencies

| Message from the President |and cleaning, in addition to speedy transport taking advantage of its
favorable location for linking regions around the country.
We are also moving forward with plans to construct gateway logistics
terminals in every major region of Japan. These facilities will have highefficiency sorting capabilities that enable sorting at the same time as
shipping and receiving 24 hours a day, which will make it possible forsame-day deliveries between major cities and to alleviate labor
shortages through reduced transport costs and manpower. In 2013, we
opened the Atsugi Gateway for the Kanto Region and we plan on
opening the Mikawa Gateway for the Chubu Region in fiscal 2016 anda new gateway in the Kansai Region in fiscal 2017.
In terms of overseas shipments, we have utilized the functions of our
Okinawa International Logistics Hub, which offers 24-hour a day
custom clearance and a central location in East Asia, to help expand
exports of Japanese agricultural, forestry and fisheries products. We
have also expanded International Cool TA-Q-BIN services to include
Hong Kong, Taiwan, and Singapore so that Japan's fresh seasonal
foods can be shipped in small lots at frequent intervals to maintainstraight-from-the-producer freshness. Moving forward, under the "Value
Networking" design, we will seek to increase the speed of customer
distribution like never before and while cutting costs and improving
quality. In August 2015, we became an official partner of the Tokyo
2020 Olympic and Paralympic Games. As the official domestic shipping
partner, we will work to facilitate the smooth administration of thegames as well as help make the Tokyo 2020 Games one of the best in
history from the standpoint of high value added logistics that balances
efficiency and safety and reduced environmental impacts.
Medium-term Management DAN-TOTSU Three-Year Plan STEP (Fiscal 2014 - Fiscal 2016)5

| Message from the President |The concept of a sound corporate culture cited in "DAN-TOTSU
Three-Year Plan STEP" refers particularly to the fulfillment of ourcorporate social responsibilities. The Yamato Group's CSR is defined
as living up to the trust and expectations of all stakeholders by fulfilling
responsibilities in the four areas of safety, the environment, society andthe economy, while working to expand our businesses by realizing ourlong-term management plan following the 10 aspects of our corporate
stance, including "respect for human life," "promoting environmental
protection," and "a corporation trusted by the local community," which
form the heart of the Yamato Group Corporate Philosophy. Based on
this, we are working to address important issue with consideration
given to our impacts on stakeholders and society as whole.
In particular, with regards to safety, we operate a fleet of more than
50,000 vehicles and use public roads as part of our transport
operations, which makes community-friendly driving as well as ensuringsafety on the road of paramount concern. This is why everyone at the
Yamato Group is working with a strong conviction to achieving zero
traffic accidents and zero occupational accidents.
In terms of the environment, we refer to environmental protection
activities carried out across the Yamato Group as "Necology." In
addition to the packaging, transport and delivery process of logistics,
we are also working diligently to make our other business activities as
eco-friendly as possible to ensure that logistics have less of an impact
on the environment.
As we move forward with the globalization of our businesses, webecame a signatory to the UN Global Compact, a framework advocatedby the UN for achieving sustainable growth, in April 2014 and stated
our support for the four fields of focus (human rights, labor, theenvironment and anti-corruption) and 10 principles.
We also recognize the corporate value extends beyond mere financial
assessments such as operating income to include customer
satisfaction, shareholder satisfaction, and employee satisfaction. We
believe that enhancing overall corporate value including CSR activities
will link with the continual and sustained growth of the Yamato Group.
Going forward, the Yamato Group will make further efforts to become acompany most loved and trusted by society. Your continued support isgreatly appreciated.

6

The Yamato Group's CSR
The Yamato Group's CSR activities
are deployed with a focus on safety,
the environment, society andeconomy, in accordance with the
Yamato Group Corporate Philosophy.
We have established thestrengthening of governance andpromotion of CSR as one of the threepillars for our basic strategy in thelong-term management plan
"DAN-TOTSU Management Plan
2019" launched in April 2011.
Efforts to continually build a soundcorporate culture will contribute tobusiness activities that comply withlaws and align with social norms. In
turn this will make it possible for theentire Yamato Group to continue
operations indefinitely into the future.
For this reason, we are committed toleveraging our collective strengths topromote CSR.

| The Yamato Group's CSR |The Yamato Group's CSR activities are deployed with a focus on safety, the environment, society andeconomy, in accordance with the Yamato Group Corporate Philosophy.
We have established the strengthening of governance and promotion of CSR as one of the three pillars forour basic strategy in the long-term management plan "DAN-TOTSU Management Plan 2019" launched in
April 2011.
Efforts to continually build a sound corporate culture will contribute to business activities that comply with laws
and align with social norms. In turn this will make it possible for the entire Yamato Group to continue
operations indefinitely into the future. For this reason, we are committed to leveraging our collective strengths
to promote CSR.

7

| Our Major Initiatives |The Yamato Group is working hard to achieve the "DAN-TOTSUManagement Plan 2019," a long-term management plan that aims to
expand our delivery businesses, accelerate the growth of our
non-delivery businesses, and strengthen our overseas expansion.
As we implement this long-term management plan, the responsibilities
that we must fulfill, the expectations of our stakeholders, and our
impacts on society will all grow larger.
As we satisfy our CSR in terms of safety, the environment, society, andeconomy, we have decided the details of our initiatives based on theirmateriality to the Yamato Group and to our stakeholders, their impact
on society, and other factors. In order to advance our information
disclosure in the future, in fiscal 2014 we examined information wedisclose for important initiatives referencing the Sustainability Reporting
Guidelines Version 4 *.

8

| Our Major Initiatives |Proper handling ofconfidential
information
Prevention of traffic
accidents

Ensuring Air cargosafetyAssistance withproduct recalls
Prevention ofoccupational
accidents

Safety measures
matched to local
traffic conditions

Home security
Mental health care

Truck, bus and othervehicle management
and maintenancesolutions

Securing information
security for products
and services* Sustainability Reporting Guidelines: A set of international guidelines that apply to the creation of CSR/sustainability reports.
Operations with significant potential or actual negative impacts on local communities
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related
fatalities, by region and by gender9

| Our Major Initiatives |Label recycling
se of uniforms
made fromrecycled PET
bottles

Eco-driving
Adoption of low
emissionvehiclesPromotion ofmodal shift
Environmental
impact reduction
throughcooperativetransport
Centralized
logistics
within large
mixed-usedbuildings

Confidential
document
recycling
service
Energy-saving
initiatives
Utilization ofnatural energy

Developing
eco-friendly
packagingmaterials

Reusing andrecycling
unwanted
articlesRecycling used
tires

Reusingrainwater

Going paperless* Sustainability Reporting Guidelines: A set of international guidelines that apply to the creation of CSR/sustainability reports.
Direct energy consumption within the organization

Significant environmental impacts of transporting
product and other goods and materials used for theorganization's operations, and transporting membersof the workforce
Materials used by weight or volume
Percentage of materials used that are recycled input
materials

Reduction of energy consumption
Direct greenhouse gas (GHG) emissions (Scope 1)
Greenhouse gas (GHG) emissions intensity10

| Our Major Initiatives |Improving quality and customer satisfaction
Product development based on customer needs (TA-Q-BIN Compact and
NEKOPOSU, etc.)
Initiatives to improve customer service quality

Creation of workplaces to motivate LA3,10
ducation and career development
Respect for diversity

Work-Life Balance

Fair and unbiased trading / Collaboration for safety and improving
service quality
Communication with TA-Q-BIN sarvice partner

Appropriate and fair information disclosure / Enhancement ofcommunication
Publication of the annual report and booklets for shareholders
Earnings presentations and investor briefings held inside and outside Japan

Supporting society and education SO1
Music TA-Q-BIN Kuroneko Family Concert
Children's Traffic Safety Workshop
Kuroneko Yamato Environmental Class
Yamato Transport Business Seminar for High School Students

Promotion of CSV in partnership with local communities SO1
Lifestyle support, sales promotion support and tourism promotion support

Support for economic independence for people with disabilities
Initiatives by the Yamato Welfare Foundation
Operation of "Swan Bakery" stores, where people with disabilities work.
Donations by employees* Sustainability Reporting Guidelines: A set of international guidelines that apply to the creation of CSR/sustainability reports.
Return to work and retention rates after parental leave, by gender
Programs for skills management and lifelong learning that support the continued employability of employees andassist them in managing career endings
Percentage of operations with implemented local community engagement, impact assessments, and development
programs11

| Feature article Yamato Group's CSV |The Yamato Group's goal is to become "Asia's No. 1 solutions provider in distribution and lifestylesupport" and "a company most loved and trusted by society" by 2019 when it will celebrate its 100th
anniversary.
To co-exist with and give back to local communities and economies, the Yamato Group is expanding
its Creating Shared Value (CSV) initiatives that seek to create value shared by local communities andthe company through its core businesses. Until now, services supporting the lifestyles andlivelihoods of people in the local community were mainly shouldered by local governments.
However, these services have been reduced or in some cases the future called into question becauseof the deteriorating finances of local governments, an increase in the elderly population, and graying
of social workers.
Japan is also faced with a growing gap between cities and rural areas, the depopulation of regions,and a decline in local industry.
Under "Project G," which stands for government, we are working together with the local governments
to help solve community issues by providing a platform that combines the Yamato Groups
information technologies (IT), logistics technologies (LT) and financial technologies (FT) for use by
local community members, producers, NPOs and companies closely rooted in the community
involved in the same business.

12

| Feature article Yamato Group's CSV |▼ Goals of "Project G"▼ "Project G" update▼ Major support services

13

| Feature article Yamato Group's CSV |Watch-over support(Kuroishi City, Aomori Prefecture)
We are helping to watch over elderly residents by delivering
local government publications once a month as TA-Q-BIN.

Shopping support services(Otoyo Town, Kochi Prefecture)
We take care of the shopping needs of people who cannot
travel to the nearest store. In the case of the elderly, we
also check to see how they are doing as part of ourwatch-over service.

Product sales support(Shunan City, Yamaguchi Prefecture)
We collect freshly picked vegetables in the morning anddeliver them immediately to roadside stations, helping tomotivate farmers who could not deliver their produce on
their own.

Tourism promotion support(Osaka City, Osaka Prefecture)
We opened a luggage storage and delivery service centerat OCAT, one of the gateways to Osaka directly connected
to JR Namba Station in order to assist travelers to enjoysightseeing and shopping without their luggage. Fifteen of
our similar outlets have been certified by the Japan Tourism
Agency as service centers for "hands-free travel."14

| Case Study 1 Lifestyle Support Watch-over Support |Yamato Transport has expanded a number of initiatives forlooking after elderly across Japan since 2010 as part of "Project
G," with this process involving a much trial and error.
One such initiative launched in Kuroishi City in Aomori Prefecturein April 2013 has been praised by the local government and local
community members as a low cost, easy-to-implement initiativethat delivers added peace of mind. Recently, we have started asimilar initiative in Fukaura Town, Aomori Prefecture, modeled
after the one in Kuroishi City. Some 41.1% of the town's
population is over the age of 65, which is the third highest ratio
among any municipality in the prefecture. The town is also facedwith a shortage of social workers, which has made it difficult tomake individual visits to elderly residents living alone.
As a result, the town has been unable to monitor the healthcondition of elderly living alone and even unable to know whether
these people have changed residences. To assist the town,
Yamato Transport concluded an agreement with Fukaura Town
Government to provide watch-over services for elderly residents
living alone that are linked to its TA-Q-BIN business. Under thisagreement, Yamato Transport has begun looking after some 550
elderly residents living alone in the town who are mainly over theage of 70.
15

Fukaura Town, Nishi Tsugaru County,
Aomori Prefecture

| Case Study 1 Lifestyle Support Watch-over Support |Quick and easy implementation using Yamato
Transport's existing TA-Q-BIN network
Initially, the Fukaura Town Government considered hiring temporary
employees to look after its elderly residents. However, it was unable toimmediately increase its workforce with new employees and even if it
was able to there was still the time and efforts needed to train them.
Yamato Transport's initiative for looking after the elderly utilizing its
TA-Q-BIN services represented an immediate solution to the town's
problem. One of the appealing aspects of this service is that it can be
implemented easily and quickly using the company's existing TA-Q-BIN
network.

Local governments provide
publications with useful living
information to elderly residents

The town now distributes its monthly publications for the elderly throughTA-Q-BIN as part of its everyday shipping operations. The results ofeach Sales Driver (SD)'s visit is collected and reported to the regional
support center for the elderly operated by the Fukaura Town
Government. Simply by sending out its publications as usual, Fukaura
Town Government can now check whether elderly living alone are ingood health or if they are still living at their registered address simply
and with certainty. Since launching this service, Yamato Transport
found that about 50 elderly individuals had moved and no longer
require follow up.
This service was introduced in Fukaura Town's newsletter, which has
helped to steadily raise its visibility as a grassroots service for watchingover elderly in the community.
Yamato Transport's goal is to provide this service continually without
additional cost or burden placed on local governments. Going forward,
this service will be tailored to suit the needs of other communities sothat new value can continually be generated together with local
communities.
▼ Mechanism for Watch-Over Support Services for the Elderly

16

These publications are delivered onroutes along with other parcels

| Case Study 1 Lifestyle Support Watch-over Support |The fact that Yamato Transport's Sales Drivers are out in thecommunity every day delivering TA-Q-BIN showed that we could
immediately introduce a watch-over service utilizing this network. Thisability to hit the ground running proved to be a deciding factor.
We have also worked on ways to notify residents about this newservice, which has steadily facilitated implementation.

Josuke Abe
Senior Public Health Nurse
Regional Support Center for the
Elderly
Fukaura Town Government

I look forward to working with the Yamato Group in the future toleverage its expertise in solving some of the issues our town faces.

We prepared in various ways to implement this service. One included
having all of our Sales Drivers at the Fukaura Center participate in aseminar on how to deal with elderly with dementia.
There was some trial and error after we initially launched the service,
but we have made great progress with refining the service while solving
issues as they have come up. We hope to provide an even better
service going forward.

17

Masaharu Takahashi
Branch Manager
Tsugaru Nishi Branch
Aomori District Branch
Yamato Transport Co., Ltd.

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |Aomori Prefectures is the northernmost prefecture on the island of Honshu in Japan. The prefecture's
food self sufficiency ratio is near 120%, which is almost three times the national average. Aomori
Prefecture boasts Japan's largest yield of apples, garlic, greater burdock, and nagaimo, and it is also
famous for its seafood such as flounder, scallops, and sea urchin, among others. As one way torevitalize the local economy, Aomori Prefecture has announced its intention to more aggressively
market its agriculture, forestry and fisheries industries in order to expand sales channels to every
corner of Japan and to international markets.
However, conventional distributions systems have limited the service area for next-day delivery of theprefecture's local fresh seafood and greengrocery. In response to this issue facing Aomori Prefecture,
Yamato Transport utilized its Cool TA-Q-BIN service to propose a new approach to distribution thatsignificantly expands the next-day delivery service coverage to help deliver the prefecture's fresh
agricultural products and seafood nationwide in Japan and beyond to international markets.

18

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |Increased the ratio of products that could be delivered by the morning of
the next day from 7.5% to 84.7%
In July 2014, Yamato Transport and Aomori Prefecture concluded apartnership agreement for building an integrated transport platform forthe prefecture, which marked the beginning of efforts to achieve
expedited deliveries of fresh agricultural products and seafood.
First, Yamato Transport established a new arterial route connecting
Aomori and Sendai, in addition to its conventional arterial transportroutes for TA-Q-BIN. Additionally, shipments bound for Chubu andKyushu for which next-day delivery was extremely difficult now use theair cargo route connecting Sendai and Osaka, with ground transport
used from Osaka. This significantly increased the ratio of products thatcan be shipped anywhere in Japan by the morning of the next day from
7.5% to 84.7%. This has also made it possible to deliver parcels toHong Kong and Taiwan, via Okinawa from Osaka, as quickly as thenext day.

A sticker denoting the parcel is to be
shipped via "A! Premium"This service, which greatly expands the distribution potential of Aomori
Prefecture products both domestically and internationally through highadded-value logistics that maintains freshness and quality with Cool
TA-Q-BIN and shortens transit times, was named "A! Premium" andofficially launched on April 27, 2015.
The service has seen a steady increase in the number of business
users since Aomori Prefecture has actively announced "A! Premium"through presentations as a solution for gaining new business
opportunities and for producers and fishermen to increase their income.
Business users of the service have been impressed with the benefits
that can be gained from small-lot shipments and the joy of delivering
their own produce directly to consumers.

19

Foods requiring freshness aretransported via refrigerated trucks

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |▼ Changes in delivery coverage achieved with Yamato Transport's services

Delivering highly competitive Japanese foods to Hong Kong, Taiwan andSingapore via International Cool TA-Q-BIN
The "A! Premium" has opened up sales channels not only in Japan, but also in international markets where
new commercial distribution opportunities are being born.
In February 2015, the trial period for the "A! Premium," an a high end Japanese restaurant chain in Hong
Kong used International Cool TA-Q-BIN to source live scallops from Aomori Prefecture. The restaurant chain's
head was so surprised at the freshness and delicious taste of the scallops delivered to Hong Kong and they
began sourcing live scallops, flounder, and live sea urchin from Aomori Prefecture when the "A! Premium"service was officially launched in June 2015. The restaurant chain also organized an Aomori Fair. The
restaurant's sashimi, which was marketed for its freshness received rave reviews from patrons even though
the price was around 20% higher than normal.
Yamato Transport launched the world's first international integrated small-lot cold transport service called
International Cool TA-Q-BIN for Hong Kong in October 2013, and in 2015 it expanded the service coverage to
Taiwan and Singapore. This makes it possible for fresh agricultural products and seafood to be soldnationwide in Japan and to international markets. However, conventional distribution systems were only able
to cover nearby areas mainly in the Tohoku Region for next-day delivery of fresh seafood or produce. To help
Aomori Prefecture with this issue, Yamato Transport proposed to utilize its Cool TA-Q-BIN service usher in a
revolution in logistics that significantly expands the next-day service area coverage for fresh local agricultural
produce and seafood to every corner of Japan and beyond to international markets.
This initiative to expand sales to international markets is being promoted to other local governments facing20

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |the same challenge. For example, in March 2015, Kumamoto Prefecture, together with Yamato Transport,
launched a dedicated e-commerce site called Kumamoto Bishoku Club, which sells strawberries, tomatoes,
red sea bream and other local products from Kumamoto Prefecture. Yamato Transport has also signed
agreements with Ehime Prefecture and Miyazaki Prefecture to expand the distribution of local products tonationwide in Japan and to international markets.
Starting in June 2015, Minamiuonuma City in Niigata Prefecture began showcasing and selling mangos
grown in local greenhouses using the heat of hot springs on an e-commerce site in Hong Kong. For theseoverseas sales, Yamato Transport is providing assistance with not only the money collection, but also theprocedures of quarantine and customs clearance and document preparation.
In the future, we will continue to support producers and local governments looking to revitalize the local
economy by providing multifaceted support utilizing the "function" and "network" of Yamato Group companies.

Live scallops from Aomori Prefecturedelivered to a Japanese restaurant inHong Kong

A Yamato Transport (HK) truck out delivering parcels to customers in Hong Kong
Fresh sashimi served in Hong Kongmade from live Aomori scallops

21

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |▼ World's first international integrated small-lot cold transport service for Hong Kong - International
Cool TA-Q-BIN
Delicious agricultural produce and seafood from Aomori Prefecture can be delivered fresh to Hong Kong via
carefully temperature-controlled cold (cold or frozen) transport and shortened lead times using the Okinawa
International Logistics Hub that offers customs clearance 24-hours a day 365 days a year.

I was surprised by the freshness of the products because they arrived
in Hong Kong on the next day after being shipped from Japan. Despite
the price of the live scallop higher than normal, it is being a popular
item in the menu with 30 orders per day. I believe the freshness of thescallops help us to differentiate from other restaurants.

Ben YuSenior Manager, Sen-ryo
MAXIM'S CATERERS LTD.

We plan on importing new ingredients in the future, so I very much lookforward to the new products that will be arriving.

The number of Hong Kong visitors to Japan has been increasing inrecent years. As the Hong Kong visitors enjoyed the Japanese cuisine
very much during their travelling, there is a growing demand forJapanese food in Hong Kong as a result.
There are more and more Japanese restaurants have been opened in
Hong Kong especially those which serve sushi and fresh seafoodearned the favor of Hong Kong people. The live scallops delivered via
International Cool Ta-Q-Bin have been rated very high by Sen-ryo
Sushi.

22

PEGGY CHEUNG
Sales Executive
Yamato Transport (HK) Ltd.

| Case Study 2 Sales Promotion and Product Delivery Support Product Sales Support Overseas Sales Channel Expansion Support |Aomori Prefecture, because of its distancefrom major consumer centers such as Tokyo,
faces the three kinds of logistics challengesof time, distance and cost. In the past, wehave been unable to deliver great tasting
Aomori products to customers outside theregion the way we wanted to. Since
becoming governor, I have pushed forwardwith an aggressive approach to marketing
agriculture, forestry and fisheries products
and in July 2014 we concluded anagreement with Yamato Transport to receive
assistance with these issues in terms oflogistics.

Shingo Mimura Governor of Aomori Prefectur

Under this agreement, in April 2015 welaunched "A! Premium," an all new transport
service that leverages the speed andintegrated cold transport capabilities of
Yamato Transport to deliver products madein Aomori Prefecture earlier, quicker,
cheaper, and to more distant markets thanever before. A! Premium has helped us toovercome the geographic handicap of
Aomori Prefecture and make it possible todeliver fresh and delicious vegetables, fruitand seafood from the prefecture to the restof Japan and to customer in international
markets. This achievement is something I
am very grateful for. I hope to invigorate
efforts across the entire prefecture to ensurethat we can maximize this great opportunity.

23

| Economy |Overview and Major Indicators of the Medium-term Management Plan
DAN-TOTSU Three-Year Plan STEP
Through the long-term DAN-TOTSU Management Plan 2019 formulated in January 2011, the Yamato Groupaims to become "Asia's No. 1 solution provider in distribution and lifestyle support" by 2019, the year of theGroup's 100th anniversary. In order to make our stakeholders' satisfaction "DAN-TOTSU," we are advancing
our business along the themes of "More globally" and "Closer to local regions and people's lives."
We divided the 9 years from 2011 to 2019 into three phases: HOP, STEP, and JUMP. Under the first phase,the DAN-TOTSU Three-Year Plan HOP, we worked to complete construction of the Atsugi Gateway and
Haneda Chronogate, which boast unprecedented added-value functions. We also worked to expand ourinternational small parcel delivery network using the Okinawa International Logistics Hub, and to otherwise
strengthen our business platform and networks.
Under the DAN-TOTSU Three-Year Plan STEP that began in fiscal 2014, we are leveraging the platform wehave built during HOP and continue to strengthen our business platform and networks to enable a major leap
forward in the final Three-Year Plan (JUMP).
As we actively advance "Value Networking" design, we can firm up our cost restructuring through highvalue-added business model creation and network innovation. At the same time, by establishing governanceaimed at fostering a sound corporate culture, we will execute balanced management that enhances thesatisfaction of local communities, society, customers, shareholders, and employees with respect to ourbusiness, quality, and cost structure.

24

| Safety |Aiming for "DAN-TOTSU"

25

| Safety |Major Achievements and Results in Fiscal 2014
Initiatives

Achievements and Results
4 major accidents (4 major traffic accidents, 0 major occupational
accidents)
The Yamato Group aims to reduce traffic accidents to zero. Every year,
Yamato Transport (J) formulates a plan to assure transport safety, andFormulation ofsafety plans

Plans to assuretransport safety

displays posters providing information on safety goals and initiatives at all
offices.
Safety Experts stationed nationwide: 288
At District Branch, Yamato Transport Co. Ltd. has stationed safety training
directors. These experts in safety measures provide safety instruction to
Sales Drivers.
Sales Drivers who have received ride-along instruction from Safety
Experts: 26,166
Trainees who have taken classes from safety expert lecturers: 46,617
At all 69 District Branches in Japan, Yamato Transport (J) appoints three
instructors with expert knowledge, one in each of three skills: laws andTraining of Sales
Drivers

Education to improveskillsregulations, practical traffic safety, and health and safety.
Safety information magazine and safety calendar
Yamato Transport (J) publishes the safety information magazine "Safety
First" with safe driving tips and other information for Sales drivers, the"Driver's Safety Handbook" carried by all Sales Drivers, and the "Safety
Calendar" that aids in training to improve risk sensitivity.
Implementation of the Zero Traffic Accidents Campaign
The Yamato Group implements the Zero Traffic Accidents Campaign every

Zero Traffic Accidents
Campaign

spring and autumn. Yamato Transport (J), which has conducted thecampaign continually since 1970, conducted the autumn fiscal 2014 Zero
Traffic Accidents Campaign with the aim of achieving zero accidents under
the theme of enforcing basic rules and being protective of children, theelderly, and motorcycles.
Long-Running No-Accident Commendation awardees: 8,620
Every year, Yamato Transport (J), Yamato Home Convenience, Yamato
Global Express, and Yamato Multi Charter commend Sales Drivers who
excel in safe driving and who remain accident-free.

Promotion ofsafety awarenessamong employees

Commendations andcontests

Yamato Transport Nationwide Safety MeetAt this safety meet held by Yamato Transport (J), 45 winners of meets at
branches nationwide, at Okinawa Yamato Transport, and at Yamato Global
Express competed on safety consciousness and driving technique. From
this time, a New three-wheelers division was newly created.
In addition to this, Tohoku regional headquarter of Yamato Home
Convenience also held a drivers' contest.
Initiatives to prevent occupational accidents
The Yamato Group performs internal sharing of information on near-missToward theachievement of safe
work environments

incidents that can lead to major accidents, and formulates and carries out
measures to achieve safe workplace environments. In addition, all groupcompanies implement measures such as forklift safety seminars and Safety
Week, which aims to improve safety consciousness.

26

| Safety |Vehicle maintenance plant Superworks: 22 sites
Superworks are Yamato Autoworks' 24-hour, 365-day maintenance plantsthat feature greatly enhanced work efficiency. Of the company's 71 plants
nationwide, 22 have been designated Superworks.
Vehicle maintenance

Mechanics: About 880 (including 650 with vehicle inspector
qualifications)
Yamato Autoworks actively supports its mechanics' acquisition of vehicle
inspector qualifications in addition to normal mechanic qualifications. This
enables the mechanics to perform completion inspections and confirm that

Maintenance ofequipment andsafety systems

vehicles conform to safety standards following maintenance.
Enforcing driver's license checks through the adoption of IT systems
In addition to visual confirmation of licenses, Yamato Transport (J) uses
portable information devices to check IC card licenses, providing support
for operation management work and enforcing compliance through IT.
Adoption ofequipment and tools

Adopting See-T Navi in delivery vehicles to support safe and Earthfriendly driving
Yamato Transport's proprietary See-T Navi onboard vehicle system
supports safe driving with features that include digitized delivery routemaps.

Overseas rolloutof measures toassure safety

Safety measures
matched to local
traffic conditions

Safety measures matched to local traffic conditions
Our company holds a Drivers' Contest safety meet in Singapore andMalaysia, and also participates in safety events.

27

| Ensuring Long Distance Transport Safety |We are firmly committed to the principle "safety first, business second" in various aspects of long
distance arterial transport connecting Japan's cities through TA-Q-BIN and B2B logistics that
includes charter services. Our female sales drivers continue to play a more integral role in ouroperations and we have spearheaded unique "safety first" efforts for these drivers.

Whenever I say I'm a driver for the Yamato Group most people think of
TA-Q-BIN, but I actually work for Yamato Multi Charter, so I drive 10-ton
trucks on inter-urban arterial routes. I drive around to Yamato▼ Initiatives by the numbers

Transport's branches in the Kansai area to collect parcels and then use
arterial routes to drive to major parcel sorting terminals called "bases"that are located throughout Japan.
For example, when driving from Kyoto to the Atsugi Gateway in28* Every year, Sales Drivers who excel

| Ensuring Long Distance Transport Safety |Kanagawa Prefecture I'll cover a distance of about 480km. I leave
Kyoto at night and arrive the next morning in Atsugi. After a half day off,
I'm back on the road that night leaving Atsugi and arriving in Kyoto thenext morning. Overall my work schedule is a total of three days. Whenin safe driving and who remain
accident-free are commended orawarded based on the number ofyears and distance driven accident
free.

driving I'm required by law to take a 30 minutes rest every four hours,
so I stop at parking areas or other places along the expressway where I
take a quick power nap.
When on the road I always make it a point not to push too hard. I leave
adequate space between the vehicle in front of me and make it a point
to avoid the passing lane whenever possible. I make it a point topractice the Yamato Group's principle of "safety first, business second."▼ Work schedule for long-distance arterial transport (Kyoto to Atsugi)

Breathalyzer tests are administeredprior shifts to measure the amount of
alcohol in a driver's breath

Inspection of wheel bolts prior toleaving

Expressways are essential tolong-distance transport

Unlike Ms. Yamamoto, I drive 2-ton trucks to collect and deliver charter service parcels between companies inurban areas. Although our workplaces are different, my commitment to safety is exactly the same. I've been atruck driver for many years, but my awareness of safety has increased a great deal since joining the YamatoGroup. After driving in the same neighborhoods every day you get to know where you need to even greaterattention such as school zones. Being constantly aware of these locations where extra attention is neededmeans that instead of not speeding I can no longer speed. Case studies of actual traffic accidents are sharedwith employees, so I use this knowledge to improve my driving.
29

| Ensuring Long Distance Transport Safety |Participating in outside driving skill competitions has also improved my safe driving practices. In 2013 and2014 I won the Female Driver 2-ton Vehicle Category of the Kyoto Prefectural Truck Driver Contest and took
part in the national competition. At the national competition, I was able to watch and learn the driving
practices of leading drivers from across Japan and also talk with them about driving. This refined my driving
skills and has boosted my motivation even further.

Whenever I'm walking with my children along the road I feel scared every time a large truck passes by. This is
why I always drive with pedestrians close in mind. You can't rush when driving, and when parking I maneuver
the truck very carefully and cautiously. Passersby who've seen me driving this way have praised me for beinga kind driver.
In the future, the Yamato Group plans on opening the Mikawa Gateway in the Chubu Region and a newgateway in the Kansai Region as well, to complement the Atsugi Gateway, a major logistics terminal, with thegoal of realizing same-day deliveries in the Tokyo, Nagoya and Osaka areas. As the frequency of arterialtransport used to connect these major terminals increases, our jobs will become even more important. I will
live up to the principle of "safety first, business second" and continually strive to practice safe driving habits.

Message from the Kyoto Prefectural Trucking Association

The Yamato Group's drivers have both the skills and manners of professionals
The Kyoto Prefectural Trucking Association is an organization whose members comprise trucking
companies located in the prefecture. Every year in June we host the Kyoto Prefectural Truck Driver
Contest in an effort to improve drivers' skills and prevent traffic accidents. Participants from the
Yamato Group always exemplify the skills and manners of professionals that serve as a model forother companies to follow. Every year these drivers score highly.
In the future, in addition to traffic safety, we will encourage companies to obtain the G-Mark*, which isa standard used to select truck companies that offer customers high levels of safety and peace ofmind. We also hope to gain the cooperation of customers in spreading the word about these activities
to make them more widely visible.
* Symbol mark for an Excellent Safe Driving Business awarded by the Japan Trucking Association

Hirohata Komatsu
Operations Section
Business Improvement Department
Kyoto Prefectural Trucking Association30

| Ensuring Air Cargo Safety |Yamato Global Express engages in the air express business and international TA-Q-BIN business.
Starting in 2009, the company began training employees to become Dangerous Goods/Security
Promotion Masters to support safe air transport operations. The role of these professionals isincreasing in importance with the rise in the number of air express shipments.

Air express services are used by a large number of customers as aquick and convenient way to send parcels. However, senders need toknow that certain goods not considered dangerous on the ground areconsidered to be dangerous goods under the Civil Aeronautics Act. For
example, high pressure spray cans used for cosmetics or hair spraycannot be shipped via air. Also, the Enforcement Ordinance of the Civil
Aeronautics Act stipulates that dry ice used to keep goods cold cannot
be shipped by air unless it is declared and satisfies certain conditions.
31▼ Initiatives by the numbers

| Ensuring Air Cargo Safety |Therefore, when using air express services, I ask customers to checkthe back of their label and other information provided to customers andif their parcel contains dangerous goods, then I ask them to remove
them from the parcel or to declare it in advance.

* Employees with sufficientknowledge and understanding of
dangerous goods and security andwho can instruct and train others

In addition, the Yamato Group is strives to ensure that undeclared
dangerous goods do not make it onto airplanes to ensure safe airtransport. Specifically, the declared contents are checked and outside
packaging inspected at the time of Sales Driver collection, when aparcel is shipped from a service window and when sorting parcels.
Yamato Global Express, as a handler of air cargo, also uses an x-ray
machine to inspect parcels. If undeclared dangerous goods are found,the sender is contacted and asked how to address the matter. Withinthese efforts, the 73 Dangerous Goods/Security Promotion Masters
stationed nationwide in Japan (as of June 2015) play an integral role.

Dangerous Goods/Security Promotion Masters are expert employees who have passed in-house testing andat least one is assigned to work for every location that accepts air cargo shipments. Our role is to conduct
x-ray screening of parcels and detect and remove dangerous goods in order to protect the safety of airtransport. In addition, we also train and educate other employees about dangerous goods and how to spotone.
We have to pay attention to air cargo in various ways, but when it comes to speed nothing beats air express
services. I'm in charge of loading the final flight out of Haneda Airport and customers have raved about theconvenience of having parcel delivered by 9:00am the next morning. To respond to such customer needs,
Dangerous Goods/Security Promotion Masters take the lead in ensuring the undeclared dangerous goods do
not make it onto the airplane to ensure safe air transport.

I became a Dangerous Goods/Security Promotion Master in 2009 and even since I have maintained a doubly
strong commitment to ensure safety in air transport. Every day at work I have to be on my toes to ensure that
not only myself, but other staff that I supervise, too, don't miss an undeclared dangerous goods. My daily work
has made me keenly aware of the importance of Dangerous Goods/Security Promotion Masters.
I took part in our company's first dangerous goods prevention contest held in June 2015 as a representativeof the Kanto District Branch, where I competed with Dangerous Goods/Security Promotion Masters selectedfrom across Japan in terms of our skills and knowledge. Unfortunately I didn't win, but I found myself
32

| Ensuring Air Cargo Safety |motivated at the sight of other competitors' accurate and speedy techniques. In the future, I will hone myknowledge and skills further to make even greater contributions to air transport safety and security.
▼ Parcel handling for air express services

Checking each parcel with an x-ray
machineLoading parcels that passed theinspection into an air cargo container

Message from ANA Cargo Inc.

We expect that a initiative driving safety in the air cargoindustry
ANA Cargo uses its domestic and international networks flown by cargo
and commercial airplanes to deliver global air cargo services. We
receive parcel from the Yamato Group to place on our aircraft for
airborne shipments. Since introducing the Dangerous Goods/Security
Promotion Master Program in 2009, we have yet to find even one parcel
from the Yamato Group with an undeclared dangerous goods, which
demonstrates to me the effectiveness of this program.
The Yamato Group's dangerous goods prevention contest started in2015 and other initiatives represent a driving force behind safety in the
air cargo industry. I expect the Yamato Group to share and promotethese initiatives as a model for other companies in the industry to follow.

33

Noriaki Kajima
Senior Vice President
General Manager
Domestic Cargo
ANA Cargo Inc.

| Environment |* Necology: "Neco" comes from the Japanese word for "cat," found in the emblematic logo of the Yamato Group. We havegiven the name "Necology" to the movement by which this "Neco" (i.e., Yamato) engages in "ecology," and arecommunicating that name to society.

Aiming for "DAN-TOTSU"

Major Achievements and Results in Fiscal 2014
Initiatives

Achievements and Results
Adopting our unique safety and ecologicalnavigation system in approximately a

Eco in transport

Every individual employee will drive at all
times in an environmentally-friendly
manner.

cumulative 32,000 delivery trucks
The unique See-T vehicular system of Yamato
Transport (J) boosts the precision of eco-driving
through visualization of fuel and other driving
conditions.

34

| Environment |Adoption of about 4,700 new three-wheelers(electric bicycles with trailers)
Yamato Transport (J) is undertaking expansionof deliveries that do not use motor vehicles.
We strive to reduce gas emissions, such
as C02, by introducing low-emission
vehicles and conducting pickup anddelivery using hand-pushed trolleys andNew three-wheelers (electric bicycle witha trailer).

Adoption of about 23,000 low-emission
vehicles (46.0% of all Yamato Group
vehicles)In our pursuit of delivery that avoids the use ofvehicles whenever possible, the Yamato Groupis making use of new three-wheelers andhand-pushed trolleys. For vehicles that are
required, we are making a shift to low-emission
vehicles.
Total volume handled by rail and marinetransportation: About 490,000 tons
Reduction of environmental impacts in

We strive to maximize the efficiency oflogistics by promoting joint operations
with other logistics providers and modal
shift using trains and seafaring vessels.

cooperation with a tram company
In 2014, we received a commendation from the
Minister of Land, Infrastructure, Transport andTourism for our efforts to reduce environmental
impacts by utilizing Raiden, the only tram in
Kyoto, as well as electric vehicles.
Displaying of Environmental Protection
Declaration posters and Indoor temperature

Every employee will endeavor tominimize energy consumption andpractice energy saving activities.

setting stickers in all Yamato Group offices
We are working to conserve energy by
enforcing "Cool Biz" light summer wear and by
reducing unneeded lighting.
Adoption of the latest environmental
technology at Haneda Chronogate
Incorporating the latest environmental

Eco in facilities

We utilize renewable energy sources andpromote the conservation of energy at
our facilities.

technology that makes use of natural energy weanticipate a CO2 reduction of 46% compared toconventional facilities. In 2014, we wereawarded the top prize at the 15th Freight
Industry Environmental Awards.
Green purchasing ratio: 84% or more

We strive to reduce waste by promoting
green purchasing, recycling and apaperless office.

(Improvement of 2 % or more from fiscal
2013)
We strive to select and purchase items with theleast impact on the environment.
Development and promotion ofenvironmentally-friendly packaging materials

Eco in products

We develop and promote products using
returnable materials and otherenvironmentally-friendly products.

The Yamato Packaging Technology Institutehas developed packaging material that does not
require package cushioning, and packaging
material that can be easily separated from otherwaste.

35

| Environment |Provision of services that leverage
information communication technology (ICT)We propose work efficiency solutions andcontribute to customers' energy
conservation.

We provide joint transport services for products,
joint usage-type online statement notification
services, and other services to support more
efficient work by customers in a variety ofindustries.

As a member of local communities, weparticipate in community environmental
conservation initiatives.
Eco with local communities
We hold environment classes to convey
the importance of the environment.

36

Active participation in local cleanup
campaigns
We hosted the Kuroneko Yamato
Environmental Class 228 times during theyear, with 15,820 children participating.

| Building and Town Management Services |Yamato Transport's Building and Town Management Service helps customers to establish a dedicatedlogistics infrastructure for large mixed-use buildings. This service has been rolled out at Toranomon
Hills, which is a mixed-use building with a hotel, residential units, office space, conference facilities
and restaurants, where it is helping to streamline the movement of goods within the development andto reduce environment impacts.

In the case of a large mixed-use building, parcels are delivered toindividual tenants, so a number of different delivery providers will enter
the same building. In some cases, this leads to congestion in thebuilding's parking lot and parcel sorting area, which in turn has caused
the late delivery of parcels to tenants. There are also times when37

| Building and Town Management Services |delivery trucks that could not enter the parking lot or parcel sorting area
have to wait along neighboring streets, which has caused increased▼ Initiatives by the numbers

CO2 emissions from idling vehicles and traffic congestion, negatively
impacting the surrounding community. Yamato Transport developed the
Building and Town Management Service as a solution to these issues.
At Toranomon Hills, a building located in Tokyo's Minato Ward that has
introduced this service, our employees are onsite 24 hours a day as the
exclusive shipping provider to receive and deliver packages for theentire building using an intra-building logistics infrastructure. Normallyfor a building of this size, parcels are unloaded from trucks, taken
inside the building and delivered, which takes about 40 minutes, but inthe case of Toranomon Hills, we are responsible for all receiving andfinal deliveries, with other shipping providers simply unloading theirparcels, which means the entire process takes only about 10 minutes.
As a result, we have reduced congestion in the parking lot and sorting
area, promoted better traffic flow in the neighborhood, improved* Required time at buildings similar insize to Toranomon Hills(Yamato
Transport study)

delivery truck fuel economy, and lowered CO2 emissions. Inside thebuilding, Yamato Transport is the only delivery provider, improving
security, which has been welcomed by Mori Building, the building
owner, and tenants.

▼ Framework and benefits of the Building and Town Management Service(centralized logistics within large mixed use buildings)

38

| Building and Town Management Services |Yamato Transport's job is to receive
parcels from the sorting area

Individual small refrigerated storage
units for deliveries intended forrestaurants

Transporting parcels to stores

These uniforms are unique to the Building and Town Management Service for Toranomon Hills.
We chose a black and grey color scheme for these uniforms, which is much different from Yamato Transport's
normal attire, because we wanted staff to blend in with their surroundings so as not to stand out among
visitors, shoppers, or people eating a meal. We also wanted tenants who have contracts in place with othershipping providers to use our services without any constraint. The jackets are made from pieces of wool fabricthat are normally thrown out. The polo shirts are made in a factory with BSCI certification to ensure fair labor
practices are followed, which also gives consideration toward the environment, safety and health. The
uniforms have been a huge success with both employees and tenants alike.

The Toranomon Hills Center has a workforce of around 30 employees. Every day we deliver parcels andpackaging materials to tenants, collect parcels and returnable materials, and solicit requests and feedback.
We have developed close relationships with tenants so that we can ask about and help solve issues, which
has enabled us to improve our services further.
For example, we have developed a number of options, such as mechanisms to improve work efficiency likethe control for entering and leaving a building and pre-opening deliveries, as well as temporary luggage
storage, porter services, and deliveries for luggage-free tourism, among others. We often talk with tenants
and Mori Building about how they like our services or how we should improve existing services so that we can
expand and augment these services. Our goal in the future is to improve customer satisfaction even more.

39

| Building and Town Management Services |Message from Mori Building Co., Ltd.

Working together to create new services for the future
When selecting the logistics provider for Toranomon Hills, Yamato
Transport's proposal aligned with our vision for revitalizing thesurrounding area, and the company's approach to operations andwillingness to try new things was also a good match. This is why wedecided to entrust the logistics management operations of Toranomon
Hills to Yamato Transport. Since opening, Yamato Transport's services,
including responding to the precise delivery time requests of tenants'
customers, have been received very positively.
I hope Yamato Transport, as an expert in the field of logistics, willcontinue to provide proposals for new services that benefit customers sothat we can together make these services a reality.

40

Takahiro Fujiwara
Assistant Group Head
Toranomon Management
Group Building
Management Department/
Facility Management
Department Mori Building
Co., Ltd.

| Reusing and Recycling Unwanted Articles |Yamato Home Convenience Co., Ltd., which delivers and helps set up home electronics and furniture,also collects unwanted home electronics and furnishings.
Instead of disposing of these items, Yamato Home Convenience refurbishes them for rental or to sell.
This service has received acclaim because it is environmentally-friendly and economically.
* A collective term used to describe the Yamato Group's environmental preservation activities.

The Home Appliance Recycling Law stipulates recycling fees so that
manufacturers will recycle unwanted home appliances in a responsible
manner. For example, when disposing of a small personal refrigerator,
the consumer has to pay a 3,600 yen recycling fee, which is added on
top of the collection and shipping charge. Additionally, unwanted homefurnishings incur a disposal fee as well. As a result, when Yamato
Home Convenience assists with a move, we collect items that are no41

| Reusing and Recycling Unwanted Articles |longer wanted but can be used basically free of charge. We will buy
back certain items as long as they are less than six years old. Throwing▼ Initiatives by the numbers

out items that can be reused is not only wasteful, but is harmful to theenvironment.
We refurbish these home electronics and furnishings and then sell themat eight recycling centers located across Japan. We have also launched
the Kuroneko Omakase Rental service that rents home electronics
typically to customers living alone for a short period of time due to atemporary relocation for work reasons. This service has become quite
popular because it is environmentally-friendly and economically since
the refurbished home electronics can be rented for a reasonable price.
This business was launched in 2009 and since then we have seen ourcustomer base and staff increase three fold. Recently, we have seen an
increase in corporate customers as well.

I'm in charge of the cleaning and operation confirmation processes of unwanted home electronics. For
example, we not only inspect and clean the outside of all washing machines and refrigerators, but the interior
as well. We also spin the drum of washing machines to make sure they function correctly and check thecooling ability of refrigerators. We have check sheets in place for each type of home electronics and always
work carefully to make sure that refurbished products can be used with peace of mind.
Various innovations are needed to refurbish individual home electronics, such as cleaning based on the
degree of dirtiness and methods for efficiently inspecting each item. I take great pride in the fact that thehome electronics I helped to clean and refurbish can be used again with peace of mind even though theywould have been disposed of otherwise.

Our Recycling Centers, where we sell refurbished products, are found in eight locations across Japan. To
meet the needs of customers who want to see the refurbished product in person but they don't live near a
Recycling Center, we also offer traveling sales throughout Japan. These outreach sales referred to as
Kuroneko Caravan were launched in 2011 and in fiscal 2014 we held sessions 200 times. This sales format
has been quite popular among customers and there are repeat customers who drop in every time looking
42

| Reusing and Recycling Unwanted Articles |forward to seeing the selection. For example, in Aso City, Kumamoto Prefecture, we took part in an event forrevitalizing the local community together with local residents which made use of the site of a closed
elementary school to sell our home electronics and furnishings alongside local produce.
Going forward, I hope to expand the number of customers and promote "Necology" while constantly listening
to our customers and making their requests a reality.
▼ Mechanism for refurbishing unwanted items

Cleaning the outside of a washingmachine with a high pressure cleaner

Kuroneko Caravan sessions bringrefurbished items to remote islands
and isolated rural communities

43

| Reusing and Recycling Unwanted Articles |Message from Namino Kogen Yasuragi Koryukan

The Kuroneko Caravan was a huge success
I was shocked to see just how briskly large refrigerators, washingmachines and furniture were sold during the Kuroneko Caravan session
held at our facility. Eventgoers noted that they couldn't buy brand new
products and didn't have the time to go to recycling shops downtown, so
they were grateful for the chance to purchase these refurbished items at
the event. Overall the event was a huge success.
I think this is a great service. Sales of refurbished items are good for theenvironment because home electronics or furnishings that otherwise
would have been thrown out can be used again. Also these items offer
good quality and can be purchased at reasonable prices.
I hope that Yamato Home Convenience will continue to hold Kuroneko
Caravan sessions throughout Japan and continue providing
opportunities for people to purchase refurbished items.

44

KatsuyaMochizuki
Director Namino Kogen
Yasuragi Koryukan Aso
City, Kumamoto Prefecture

| Society |Aiming for "DAN-TOTSU"

45

| Society |Major Achievements and Results in Fiscal 2014
Initiatives

Achievements and Results
Implementation of customer service response competition (forCustomers

Improvement of response
qualitycustomer Service Center operators and Guest Operators)
We evaluate operators who are in daily contact with customers, awarding
those who score well in screening of response skills (facial expressions,conduct, way of speaking, diction etc.), product knowledge, andcommunication skills.
Training that matches career plans

Education / training andcareer development

We conduct a variety of training including Junior Leader School,
intra-group job rotation, and global human resources communication
training.
527 persons took childcare leave / 435 persons worked shorter hours
for childcare
At Yamato Transport in Japan (Yamato Transport (J)), employees cantake childcare leave until the child become 14 months old, if their spouses
are on childcare leave and shorter working hours for childcare can betaken until the child finishes fourth grade at elementary school.

Work-Life Balance

We are certified by Japan's Ministry of Health, Labour and Welfare as
a company that actively supports the balance between work andfamily life.

Employees

As of April 2015, four of our companies have received the abovecertification:
Yamato Management Service (2015), Yamato Transport (J) (2014),
Yamato Logistics (2013), Yamato System Development (2011)
Promotion of programs for active engagement of female employees
We held a career design seminar for female employees at BIZ
Logiformation to boost employee motivation through opportunities to learn
the basics of career design and to consider career paths.
Respect for diversity

Employment of 2,187 persons with disabilities (Employment rate:
2.08%)
We will continue to create a barrier-free workplaces conductive to work bypeople with disabilities.
Communication with about 230,000 TA-Q-BIN service partners

Partners

Fair and unbiased trading /Collaboration for safety andimproving service quality

Our Sales Drivers make daily visits to service partners. We also issue theinformation magazine "Kuroneko-Dayori" to general service partners suchas liquor and rice shops.
We publish an annual report and a booklet for shareholders toAppropriate and fair
information disclosure /Shareholders
Enhancement ofcommunication

disclose information.
Briefings for analysts held 4 times, and visiting institutional
investors for briefing in North America / Europe / Asia
We conduct briefings for analysts 4 times a year, as well as overseas
briefings for institutional investors in North America, Europe, and Asia.
Music TA-Q-BIN "Kuroneko Family Concert" held 10 times per year,with attendance by 13,818 people.

Local people

Social education support

Cumulative 293 concerts with a total attendance of about 430,000 people
2015 marks the 30th year of the concert.
"Yamato Transport Business Seminar for High School Students"46

| Society |Participation by 19 schools and 84 persons in fiscal 2014.
Cumulative participation by 63 schools and 381 persons (conducted
every year since 2006)
The program received the Examination Committee Incentive Prize in theAwards for Companies Promoting Youth Experience Activities by the
Ministry of Education, Culture, Sports, Science and Technology.
"Children's Traffic Safety Workshop" held 1,874 times per year, with
about 207,613 participants.
Cumulative 24,134 times with participation by a cumulative 2,589,000
persons (held every year since 1998)
Kuroneko Yamato Environmental Class
228 times per year with participation by about 15,820 people
Cumulative 2,789 times with participation by a cumulative 208,434
persons (held every year since 2005)

Promotion of CSV in
partnership with local
communities

Lifestyle support, sales promotion support, tourism support etc.
Total number of cases: 1,198 (288 cases in operation)
Number of agreements: 226 (as of the end of July 2015)
Through our main business, we make efforts to create value that can beshared by enterprises and society.
Support for the creation of workplaces in which people withdisabilities can be economically independent
Through the Yamato Welfare Foundation, we implemented the "Bridge toDreams Project (Yume E No Kakehashi Project)" to assist the preparationof "economic independence".
Arrangement of Kuroneko direct mail delivery work for 1,651 persons

Support for economic
independence for people withdisabilities

with disabilities
Nationwide operation of 28 "Swan Bakery" stores employing people
with disabilities.
Swan operates three directly managed Swan Bakery stores and 24
franchise stores.
Fund raised through the Natsu No Kampa (summer donation)
program: 72,14 million yen
About 200,000 employees in the Yamato Group raised funds for the
Yamato Welfare Foundation and NPO Ashinaga.

47

| Business Seminar for High School Students |The theme of Yamato Transport's Business Seminar for High School Students, which marked its 9th
session in 2014, was "Proposals for a New Approach to "Necology"*-Achieving an Eco-Friendly
Society Together through Yamato Transport's Businesses." This year a total of 19 teams, including
one from Singapore, presented their proposals to Yamato Transport's senior executives.
* A collective term used to describe the Yamato Group's environmental preservation activities.

Our proposal from Tokyo Denki University High School focused on an
eco-friendly business that can be profitable while also helping torevitalize Koganei City. This business involves using TA-Q-BIN tocollect dried organic waste and sell it to local farmers after it isconverted into fertilizer.
Initially, we thought this project would be relatively easy once we firmed
48

| Business Seminar for High School Students |up the plan, but in reality it turned out to be quite different. We went tocity hall, a place we had rarely been, to collect documents, researched▼ Initiatives by the numbers

laws, and contacted companies, among other activities. The toughest
part of the project was calling city hall and companies. Though we talkto friends all the time on our mobile phones, it was a bit nerve-racking
to call people we had never met before until we got used to it.
On the day of the final presentation, although we felt things would gowell because we had spent upwards of six months on our proposal, achill went through our spine momentarily when the judges asked if our
price for the fertilizer was appropriate. However, we thoroughly
investigated the details, so we were able to respond to this question
with confidence. We were really elated to be announced as thewinners.

▼ Schedule of the 9th Business Seminar for High School Students▼ Business plan of the winning team from Tokyo Denki University High School

There is no waste incinerator in Koganei City, so the city is working with local neighborhoods to address the issue of garbage
and waste. Therefore, we came up with the idea of using organic waste, which accounts for about half of all burnable wastefrom households, to make fertilizer and to reduce organic waste.
First, dehydrators are lent out to Kuroneko Members (a free membership service for individuals) in the city that are interested
in participating. Organic waste is collected and after being made into fertilizer through fermentation at a plant, it is sold tofarmers. This will help aging producers of Edo Tokyo vegetables to develop the next generation of farmers and revitalize local
agriculture by increasing production of Edo Tokyo vegetables.

49

| Business Seminar for High School Students |Seven meetings were held over a
six-month period

Presenting in front of Yamato
Transport's senior executives

The goal of the Business Seminar for High School Students is to expand the horizons of students, give themmore awareness about their involvement in society, and provide an impetus for them to pave the way for theirown future. Participating teams work for a period of six months on the year's theme to plan a business modeland Yamato Transport employees provide assistance to the high school students to develop the five types ofabilities.
The first type of ability is the ability to never give up and see things out to the end. The three members of thewinning team demonstrated this ability admirably. The second and third types of abilities are communication
skills and research and analysis ability. Initially they were hesitant about calling city hall and companies, butthey were gradually able to make these calls after we encouraged them to ask about things they didn't know
about. Through this, they became aware of the need to know about related laws and carry out detailed
research. The fourth is time management, and we were impressed with the winning team's showing. We held
meetings with the three of them on seven occasions over the space of six months and every single time they
did their "homework" as planned. The fifth ability is presentation skills. It was impressive to see them answer
all of the difficult questions asked by the judges confidently. As a result, their proposal was viewed with great
admiration because of its thoroughness in researching and holistically addressing the issues of waste andfarming faced by their local community of Koganei City with a broad perspective.

As part of the Business Seminar for High School Students, employees serve as mentors to the high schools
students while working closely with their teachers. For this session, the human resources development
sections for the Saikyo District Branch and Higashi Tokyo District Branch worked together to support the highschool students.
The approach taken by mentors to challenge students to notice things instead of telling them something iswrong and teach them that with teamwork they can overcome even the most challenging problems posed for
an individual proved to be useful in employee development.

50

| Business Seminar for High School Students |Message from Junior Achievement Japan

This program for students demonstrates Yamato
Transport's corporate stance
The year 2014 marks the ninth time the Business Seminar for HighSchool Students was held. Yamato Transport has supported thisprogram since its inception. It is no easy task to work with students forthe long duration of nearly six months, especially when busy with workduties. This faithful devotion to the students embodies Yamato
Transport's corporate stance and I have developed a heartfelt trust in
the company because of its employees always keep the best interests ofthe students in mind.
I am really proud knowing that this initiative was recognized by the
Ministry of Education, Culture, Sports, Science & Technology with anhonorable mention at the Japan Youth Awards.

51

Yoriko Kuroki
Executive DirectorOperations
Junior Achievement Japan

| Diversity |The Yamato Group, which employs a workforce of nearly 200,000 people, recognizes the importanceof recognizing and accepting diversity in terms of gender, nationality, and age, among other factors,
in becoming a group of companies that is trusted by stakeholders, internationally competitive, andresilient in the face of market change.

The Yamato Group is supported by its diverse pool of employees withdifferent backgrounds and different genders, ages, nationalities andlifestyles.
Going forward, we must respond to various changes taking place insociety, such as the aging population, declining birthrate, labor
shortfalls and changing needs. It will be essential for us to create
workplaces that respect the diverse values, thinking, and awareness of
its people and that fully leverage their skills and abilities. We will52

| Diversity |continue to evolve our initiatives to ensure that every employee canthrive. This includes supporting a work-life balance between job and▼ Initiatives by the numbers

home life, providing new approaches to work for employees with timeor physical constraints, and mechanisms for soliciting opinions andideas from part time workers.
I believe encouraging diversity involves being aware of andincorporating the diverse values of employees into the organization andlinking this up with improved competitiveness and business growth.

▼ Encouraging diversity at the Yamato GroupThe Yamato Group employees around 70,000 female employees,
which is about 35% of our entire workforce. For example, women are
working in various lines of work at Yamato Transport, including as
Guest Operators providing customer service at sales offices, as Sales
Drivers who collect and deliver parcels, and as call center operators.
Women are contributing a great deal to workplace revitalization throughcustomer-centric proposals and continual improvement activities.
We have established in-house programs so that employees withconstraints on their working hours can achieve work-life balance.
Currently, Yamato System Development, Yamato Logistics, Yamato
Transport and Yamato Management Services have been accredited by
the Ministry of Health, Labour and Welfare as a company that actively
supports the balance between work and family life.
As the structure of society changes, all employees, not only women,
will want flexible work styles, respect for one another, and a culture that
53

"Kurumin"Next-Generation Certification Mark

| Diversity |recognizes and compliments each other. Our goal is to create evenmore employee-friendly workplaces for the future.

The Yamato Group established the Diversity Promotion Office in August 2014 and has been encouraging
diversity according to three key pillars ever since. The first of these pillars is fostering a strong awareness ofdiversity. Each and every individual needs to have a common mindset toward workplace diversity. Second iscreating employee-friendly workplaces. We need to offer workplaces where every employee can contribute
their skills equally based on changes in work styles and the promotion of work-life balance. Finally, third iscareer development support. We are working to support each and every employee to achieve personal andprofessional growth through their jobs. We have also appointed Diversity Promotion Managers at each
Yamato Group company and established an implementation system in order to begin full-fledged efforts
based on an action plan for each company's situation and challenges,
We will continue to establish workplaces where the Yamato Group's diverse workforce can thrive andcontribute and by developing human resources that can create new services and new value we will continue
to build a foundation for creation the next innovation.

54

| Diversity |Message from Appassionata, Inc.

Utilizing the approaches of inclusive management indiversity initiatives
I hear that Yamato Holdings has established the Diversity Promotion
Office and has carried out a diversity survey in-house. I believe that thedirection of the entire Yamato Group's diversity promotion efforts, which
are based on the results of this survey and analysis of Japan's socialand economic conditions, are sound.
The Yamato Group now is in the phase of continually implementing a
specific action plan. Progress should be monitored regularly while
implementing initiatives so that changes can be made whenever a
problem arises. The key is to make steady forward progress.
Diversity promotion requires inclusion. The Yamato Group's company
precepts demonstrate the spirit of inclusive management. I hope that the
Yamato Group will take full advantage of this approach in its diversity
efforts.

55

Joanna Sook Ja
Park
Representative
Appassionata, Inc.

| Governance |We Aim to Continue as a Corporate Group in which Each Individual Holds a High Sense of Ethics

Corporate Governance
Making the securing of sound management, and the achievement of prompt andaccurate decision-making and business execution, our basic policy
Yamato Holdings, a pure holding company, and its group companies make the securing of soundmanagement, and the achievement of prompt and accurate decision-making and business execution, thebasic policies upon which we work to strengthen corporate governance.
Yamato Holdings has established the Board of Directors, the Management Advisory Committee, and the
Executive Committee as business management organizations involved in group-wide managerial decisionmaking, execution, and supervision, creating a structure to carry out prompt and proper decision-making onimportant matters.
The Board of Directors consists of 6 directors (including 2 outside directors) who serve one-year terms, during
which the directors clarify the responsibilities of management for the fiscal year. The Audit & Supervisory
Board consists of 2 full-time Audit & Supervisory Board members and 2 outside Audit & Supervisory Board
members, who audit the performance of directors’ duties through actions including attendance at Board of
Directors meetings and other important meetings. In addition, the auditors periodically hold Group Auditors’
Liaison Meetings to discuss auditing policy and methods with full-time Audit & Supervisory Board members
from major group companies, with the aim of enhancing auditing functions across the Group. All outside
directors and outside Audit & Supervisory Board members are independent officers pursuant to Tokyo Stock
Exchange Regulations, and their names are registered at the Tokyo Stock Exchange.

56

| Governance |Corporate governance promotion framework

Compliance
Strengthening internal control for the Group overall
The Yamato Group has established an internal control system in order to promote sound corporate culture in
the group a whole, and to enable employees to perform their duties effectively and efficiently without any
misbehavior or mistake.
Yamato Holdings has stipulated its basic policy on the internal control system in accordance with theCompanies Act, and each group company is working on strengthening internal controls. In addition, in orderto respond to the internal control report system pursuant to the Financial Instruments and Exchange Act,
which went into effect in April 2008, we created a post of internal control manager in major group companies,
and have made efforts to review business rules and standardize operations. We have also constructed aframework by which the section in charge of audits in Yamato Holdings and the sections in charge of internal
control in major group companies check whether work is being conducted effectively in accordance with rules,
and seek immediate remediation of any deviations. Internal control involving financial reporting by the YamatoGroup was found to be valid as of March 31, 2015, with a report submitted to the Kanto Local Finance
Bureau.
In accordance with the enactment of the Act on the Partial Revision of the Companies Act and the Ministerial
Ordinance on the Partial Revision of the Ordinance for Enforcement of the Companies Act, Etc. on May 1,
2015, within our basic policy concerning the creation of internal control systems we revised frameworks for
ensuring the properness of work by the Yamato Group and frameworks related to auditing, in order to conformwith our current situation. We revised these to incorporate specific and clear expressions, in line with thestatutory revisions.
57

| Governance |Setting the establishment of compliance management as our highest-priority issue
To construct a framework to prevent corporate misconduct in accordance with the laws and regulations andcorporate ethics, the Yamato Group is making efforts to ensure compliance management as a top-priority
issue for CSR promotion.
We have formulated the Group Corporate philosophy that summarizes the Yamato Group’s corporate
responsibility for and stance toward society, and have announced our Declaration of Compliance under which
we declare our observance of the laws and regulations, corporate ethics, etc. In all business offices of eachgroup company, a poster of our Declaration of Compliance has been put up to give a clear explanation incase of violations using illustrations. It helps to raise employees’ awareness and call their attention tocompliance.
Officers and employees of the Yamato Group are required to act in good faith in accordance with the abovementioned corporate philosophy. The departments responsible for compliance risk management of groupcompanies, centering on the Compliance and Risk Committee of Yamato Holdings are working to ensure theirobservance. We have also set up a Compliance Hotline and a Suggestion Box as points of contact in ourwhistle-blowing system, which enable us to directly obtain information on risks in the company by means of
notification and consultation by phone or e-mail. They contribute to prevention of compliance violations.
Compliance and risk management framework

Officers and employees of the Yamato Group are required to act in good faith in accordance with the abovementioned corporate philosophy. The departments responsible for compliance risk management of groupcompanies, centering on the Compliance and Risk Committee of Yamato Holdings are working to ensure theirobservance.

58

| Governance |We have also set up a Compliance Hotline and a Suggestion Box as points of contact in our whistle-blowing
system, which enable us to directly obtain information on risks in the company by means of notification andconsultation by phone or e-mail. They contribute to prevention of compliance violations.

Concerning inappropriate temperature management in Cool TA-Q-BIN service
Following establishment of the Cool TA-Q-BIN Service Quality Improvement Headquarters in October
2014, we established the Cool TA-Q-BIN Service Quality Improvement Department, assigned Quality
Training Directors nationwide, and appointed Cool TA-Q-BIN Work Leaders at each site to prevent
recurrence of the temperature management issue.
In June 2015, we adopted a total volume management system. During demand peaks for the Cool
TA-Q-BIN service in July and December, we will increase deployment of vehicles and other equipment
for the service, and, predicting the daily volume of Cool TA-Q-BIN package arrivals at each site
nationwide, will deploy equipment appropriately to prevent capacity overflows.
Through the construction of this system, we believe we can improve convenience for customers,
including the ability to specify delivery dates even with the Cool TA-Q-BIN service. We will further
strive to maintain and improve the quality of the Cool TA-Q-BIN service.

Business Continuity Plan (BCP)
Leveraging our experience in the Great East Japan Earthquake to effectimprovements that will enable appropriate response to major earthquakes
The Yamato Group offers the TA-Q-BIN service as social infrastructure, and is expected to keep offering thesteady service even under unforeseeable circumstances. In the wake of the emergence of novel influenza
strain (H1N1) in May 2009, we formulated a business continuity plan (BCP).
Based on this BCP, formulated according to response guidelines focusing on maximum priority on human life
and on continuation of the TA-Q-BIN business, we addressed the problems caused by the Great East Japan
Earthquake that occurred in 2011. Our aim is to prepare for an earthquake occurring directly beneath theTokyo Metropolitan Area and an earthquake along the Nankai Trough, which are likely to occur in the future
and are expected to cause large-scale damage.

59

| Governance |Information Security
Putting forth our Information Security Assurance Declaration and promoting theacquisition of certifications
The Yamato Group handles important personal information of many customers. We had always maintained
strict control over such information, and in March 2003, we announced our "Declaration on Ensuring
Information Security" in view of the social situation including frequent leakage of personal information from acompany. Since then, we have reinforced information security with an emphasis on "protection of personal
information," "confidentiality of corporate information," and "prohibition of falsification and concealment."
For the purpose of ensuring proper and safe handling of personal information, we will strive to familiarize
employees with the information security rules, and to increase their educational opportunities. By doing so, we
believe we will be able to improve customer trust in our group.
In addition, for each of our group company workplaces we are actively working to acquire various
certifications regarding information security.

Security-related certifications acquired by group companies (as of August 2015)
Certification

Year ofacquisition

Company nameYamato System Development Co., Ltd.

1999

Yamato Financial Co., Ltd.

2006

Yamato Contact Service Co., Ltd.

JISQ15001(Privacymark System)

Head Office

2007

Tokyo Call Center

2015

Saitama Call Center2007

Miyakonojo Intelligent Contact Center

2010

Wakayama Call Center

2012

Tottori Intelligent Contact Center

2013

Tome Contact Center

2013

Kanto Mother Center

2014

Yamato Web Solutions Co., Ltd.

2007

Yamato Logistics Co., Ltd.

2010

Yamato Multi-maintenance Solutions Co., Ltd.

2010

Yamato Management Service Co., Ltd.

2011

60

| Governance |Yamato Transport Co., Ltd.
Headquarters

2015

Yamato System Development Co., Ltd.
Shin-Tokyo IDC

ISO27001

2004

Osaka IDC

2002

Contactless credit card data processing services for large-scale affiliate stores

2009

Credit card terminal installation application form acceptance center operation

2012

CAT joint usage system

2013

Sorting and sending of account transfer request documents

2013

Member contact service

2014

Joint usage-type online statement notification service

2014

Proxy service for emergency invalidation procurement

2014

Operations related to (new) registration of terminal installation application forms,
account transfer systems (development), credit card terminal installation
application form acceptance center operation (development), online application
acceptance service, settlement NW, settlement information DB

2015

Yamato Packing Service Co., Ltd.
Head office (human resources, general affairs, planning, information)

2005

Documents Logistics Company (Sales Department, Sales Department
Administration Division, Planning Department, Tokyo Plant, Saitama Plant, Haneda
Plant)

2005

Yamato Contact Service Co., Ltd.
Head Office

2006

Tokyo Call Center

2015

Saitama Call Center2007

Miyakonojo Intelligent Contact Center

2010

Wakayama Call Center

2012

Tottori Intelligent Contact Center

2013

Tome Call Center

2013

Kanto Mother Center

2014

Yamato Packing Technology Institute Co., Ltd.
Kanto No. 1 Branch, Operation Center, Packaging Solutions Business Division,
Business Management Division, Research and Development Office
ISO20000

Yamato System Development Co., Ltd.

2009
2006

Yamato System Development Co., Ltd.
PCIDSS
Registration ofInformation Security
Auditing Firms

Credit card settlement service

2006

Web billing service

2011

Yamato System Development Co., Ltd.

61

2004

| Awards & Recognition |Year andmonth
receivedAwardsRecognized by

Recipient

2015

February

Low Carbon Cup 2015
Special Mention Judges Award

Low Carbon Cup Executive
Committee(supported by the Ministry of theEnvironment and Platinum
Concept Network)

February

18th Environmental Communication
AwardsExcellence Award for Global
Warming Prevention Measure
Reporting (Global Environmental
Forum Director's Award)

Ministry of the Environment and
the Global Environmental Forum

February

FY 2014 Awards for Companies
Ministry of Education, Culture,
Supporting Youth Learning Activities
Sports, Science, and Technology
Honorable Mention Judges Award

Yamato Transport Co., Ltd.

January

18th Environmental Management
Survey2nd in Transportation Category

Nikkei Inc.

Yamato Holdings Co., Ltd.

December

FY 2014 Minister's Award forTransport Businesses with an
Excellent Environmental Track
RecordMinister of Land, Infrastructure,
Transport and Tourism

Yamato Transport Co., Ltd.

November

3rd Healthy Life Expectancy Awards
Excellence Award in the Companies
Category (awarded by the DirectorGeneral of the MHLW HealthService Bureau)

Smart Life Project Secretariat(Cancer Control and Health
Promotion Division, HealthService Bureau, Ministry of
Health, Labour and Welfare)

Yamato Group Health InsuranceSociety

November

8th METI Minister's Awards for Best
Contributors to Product Safety
Special Prize

Ministry of Economy, Trade andIndustry

Yamato Multi-Maintenance
Solutions Co., Ltd.

September

7th Japan Society of Health Support
Japan Society of Health Support
Science Awards
Science
Winner of the Practical Activities
Category

July

2nd Platinum Awards
Grand Prize and Minister of Internal
Affairs and Communications Award

Platinum Awards Steering
Committee (Platinum Concept
Network)

Yamato Holdings Co., Ltd.

May

15th Logistics Environment Awards

Japan Association for Logistics
and Transport

Yamato Transport Co., Ltd.

Yamato Holdings Co., Ltd.

Yamato Group Corporate Social
Responsibility Report 2014(highlights version)

2014

62

Yamato Group Health InsuranceSociety| Third-Party Opinion |Mizue Unno
Representative Director, So-Tech Consulting

The Yamato Group operates a parcel delivery business closely in tune with the local community andcontinues to steadily carry out initiatives grounded in its corporate social responsibilities (CSR). Instead ofrolling out efforts based on an independent set of CSR goals, the Yamato Group considers its businesses tofunction as social infrastructure, while its management infrastructure possesses the public nature of solving
issues facing local communities. I believe that each and every employee practices the Yamato Group
Corporate Philosophy and a culture and DNA are firmly in place for carrying out daily operations in an honest
and consistent manner.

Infrastructure Business Model Closely in Tune with Society
Even Value Networking, a core concept of the Group's management strategy, contains a design for resolvingsocial issues within proactive investments for business expansion and greater business efficiency. Gaining acompetitive edge through these investments will likely result in more enhanced social infrastructure. This isvery forward-looking as it focuses on creating a mechanism where problems are not ever created, instead ofthinking about ways of solving problems that are happening.
In this manner, based on the thought that a business without a public interest is meaningless and a businesswithout economic merits cannot continue simply by emphasizing its social value, the Yamato Group's
fundamental approach is to simultaneously achieve both economic merits and public interests in all activities.
The Yamato Group has been practicing what is known today as CSV since its very inception. It is exceptionalthat the Yamato Group's projects that benefit society actually exist as profit-producing businesses.
I commend the Yamato Group for its flexible management stance where various services, which go beyond
the parcel delivery business, are combined from the perspective of improving infrastructure for the local
community. The various public services offered under Project G represent an outcome from these efforts.
Unlike conventional businesses outsourced from governments, Project G represents an important businessmodel that transcends a single company's domain to help lower costs for all of society through a newpartnership involving careful collaboration with local governments.
63

| Third-Party Opinion |As for other basic aspects of CSR, the Yamato Group is rolling out self-led initiatives in all of its businessactivities. Of particular note is the fact that the Yamato Group considers not only the environment and society
to be important areas, but safety as well. I particularly commend the Yamato Group for its ongoingcommitment to support people with disabilities, which it focuses particular efforts on.

Desired Improvements in Systematic Explanations of Initiatives
The Yamato Group is practicing its CSR from the very fundamentals of its business activities, so this raises
the importance of highlighting this in reports comprehensively and effectively.
The disclosure of CSR information should include reports on annual activity reviews and a general picture ofcurrent activities. The former is the role of the CSR report, while the latter, which covers an extensive range of
information, should be disclosed structurally using the company's website. Disclosures of the Yamato Group
predominantly focus on reports for individual years, which means various initiatives are not fully conveyed toreaders. For example, the mention of CSV in the feature article section and "DAN-TOTSU" stories should be
disclosed so that stakeholders can continually access items reported in the past. This will foster greater
understanding in the company's many initiatives and also enhance the content of the website.
Although the Yamato Group values the importance of CSR, the degree of importance of issues discussed in
the report is inconsistent. Important issues need to be narrowed further and reviews must be conducted into
progress attained over the space of several years. The various items of data being disclosed currently focus
mainly on the activities of individual years, so the Yamato Group needs to report on past data to show its
initiatives to date and changes that have brought improvements. Moreover, its extensive CSR initiatives need
to be explained area by area and reported systematically using materiality assessments and KPI skillfully.
This will convey the Yamato Group's initiatives in a much clearer and understandable manner.

Future Issues
The greatest concerns among CSR issues including the employment of workers and labor issues. Of
particular concern for the logistics industry is compliance with work hours and providing a safe work
environment. It is important to work for society and customers, but it will not serve as a solution if this leads toan oppressive in-house environment. The responsibilities of a company extend to the supply chain, whichmeans a company will need to keep track of business partners and affiliates. Within a company, there could
be problems not with full-time employees, but rather contract workers and temporary staff that are notafforded full protection by law, which requires companies to act thoroughly.
Another issue is rolling out CSR activities in overseas operations, predominantly in Asia. The quality of the
Yamato Group's businesses is firmly entrenched in the awareness of each and every employee, so the key
will be how to foster this same type of awareness in other countries. This raises the question of just how far
the company can permeate the values it developed in Japan within a country with a different culture anddifferent lifestyles. I hope that the Yamato Group will develop its businesses uniquely based on the64

| Third-Party Opinion |acceptance and trust of the local market, while establishing high quality services that can win over customers.

I would first like to thank Ms. Unno for her very valuable
feedback and suggestions regarding the Yamato Group's CSR
activity reporting.
This report, like last year, focuses on specific case studies in theareas of safety, the environment, and society, using a format
where employees answer questions from stakeholders. Also,
this fiscal year we have begun posting videos to our corporatewebsite to provide more visually interactive understanding about
the Yamato Group's stance and initiatives for CSR.
In our aspirations to become "a company most loved and trusted
by society" and "Asia's No. 1 solution provider in distribution andlifestyle support" by 2019, our 100th anniversary, feature articles
this year highlight our watch-over initiative for the elderly andsupport services in helping businesses expand their sales
channels in Japan and overseas using the Cool TA-Q-BIN
service. I am very honored to see that Ms. Unno highly
commends the Yamato Group for these initiatives which sheviews as a "business model that transcends a single company's
domain."Going forward, we will work to broaden understanding in the
Yamato Group's CSR stance and initiatives among all
stakeholders by narrowing important issues and providing
updates using data from past years. The CSR issues that arise
from our business expansion will each be addressed individually
and with the utmost care to ensure we become a company most
loved and trusted by society.

65

Tomoki Otani
Yamato Holdings Co., Ltd.
Senior Executive Officer

| Policy for Publishing CSR Information |This report is created to deepen our stakeholders' understanding of the Yamato Group's stance and initiatives
regarding corporate social responsibility (CSR).
At present, the Yamato Group is working as one to advance our long-term "DAN-TOTSU Management Plan
2019." This report shows how our employees aim for "DAN-TOTSU" as they work to fulfill our social
responsibilities as a company. In reporting on initiatives concerning Safety, Environment, and Society inparticular, we worked to make the report easy to read and understand through the format of employees'
responses to stakeholders' questions.

Guidelines, etc. referenced
G.R.I. (Global Reporting Initiative), "Sustainability Reporting Guidelines" (G3.1 and G4); Ministry of theEnvironment, "Environmental Reporting Guidelines" (2012 version)

Period covered in report
Fiscal 2014 (April 2014 - March 2015)
Performance data is as of the end of March 2015, unless noted otherwise. (Some information from before thetarget fiscal year and after April 2015 is included in reporting on activities.)

Scope of report
Safety, environmental, social, and economic aspects of the activities of the Yamato Group.

Publication
October 2015 (scheduled next publication: October 2016)

Third-Party Opinion
In order to increase the objectivity and reliability of our CSR reports, we have received a third-party opinion.

66

| Participation in the UN Global Compact |In April 2014, the Yamato Group joined the UN Global Compact, a framework in which the UN
and businesses work together to realize sustainable growth.
The Yamato Group supports the 10 principles of the UN Global Compact and by practicing
these principles in its business operations the Yamato Group is contributing to the sustainable
development of society and the fostering of a sound corporate culture in accordance with themedium-term management plan called DAN-TOTSU Three-Year Plan STEP.

1. About the UN Global Compact
The UN Global Compact was first advocated by former UN Secretary-General Kofi Annan at theWorld Economic Forum held in January 1999. As of February 2014, 12,139 businesses in 145
countries are participating in the UN Global Compact. Participating businesses carry out businessactivities that enable sustainable growth in society based on international guidelines on humanrights, labor, environment, and anti-corruption.
For more details, please see the website of the Global Compact Network Japan.

2. About the 10 Principles
The UN Global Compact summarizes shared values formed and approved by the world in the formof 10 principles covering the four areas of human rights, labor, environment, and anti-corruption.

Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

67

| Participation in the UN Global Compact |Anti-corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion andbribery.

68