Translation
May 15, 2020

Consolidated Financial Results for the Year Ended March 31, 2020
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange9064
http://www.yamato-hd.co.jp/
Yutaka Nagao, President
Atsushi Kashimoto, Executive Officer, in charge of Financing and Accounting
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the ordinary general meeting of shareholders: June 23, 2020
Scheduled date of the commencement of dividend payment:
June 4, 2020
Scheduled date of the submission of annual securities report:
June 23, 2020
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for fiscal year 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Operating revenue

Operating profit(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary profit
owners of the Parent

For the year ended Millions of yen% Millions of yen%
Millions of yen%
March 31, 2020
1,630,146
0.3
44,701(23.4)
40,625(25.1)March 31, 2019
1,625,315
5.6
58,34563.5
54,25950.4(Note) Comprehensive income:For the year ended March 31, 2020: 17,285 million yen ((36.0) %)For the year ended March 31, 2019: 26,987 million yen (18.5 %)Basic earnings per
share

Diluted earnings
per share(2) Consolidated financial position

Total assets
As ofMarch 31, 2020
March 31, 2019
(Reference) Equity:

Ratio of ordinary
profit to total assets

Return on equity

For the year ended
Yen
Yen
March 31, 2020
56.78—
March 31, 2019
65.14—
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2020:
For the year ended March 31, 2019:
Net assets

Millions of yen
22,32425,682%4.0
4.6(4,168) million yen(4,872) million yen

%
3.7
4.8

Equity ratio

Millions of yen
Millions of yen
1,100,739
562,835
1,123,659
573,388
As of March 31, 2020: 555,173 million yen
As of March 31, 2019:%(13.1)
40.9

Ratio of operating
profit to operating
revenue%
2.7
3.6

Net assets per share

%
50.4
50.4
565,841 million yen

Yen
1,441.20
1,435.15(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2020
March 31, 2019

Millions of yen
74,433
118,093

Cash flows frominvesting activities
Millions of yen(49,943)(54,872)

Cash flows fromfinancing activities
Millions of yen(22,368)(70,947)

Cash and cash equivalents
at end of period
Millions of Yen
196,662
194,650

2.

Dividends
Annual dividendsFirstquarter

Fiscal 2019
Fiscal 2020

Yen
—
—

Secondquarter
Yen
14.00
15.00

Third
quarter
Yen——

Fiscalyear-end

Total

Yen
14.00
26.00

Fiscal 2021————
(Forecast)(Note 1) Breakdown of year-end dividends in fiscal year ended March 31, 2020:

Yen
28.00
41.00

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
11,03915,929

%
43.0
72.2

%
2.0
2.9

—

—

Ordinary dividends: 16 yen
Commemorative dividends: 10 yen(Note 2) The dividend forecasts for the fiscal year ending March 31, 2021 is presently uncertain. We will make an announcement promptly
after the dividend forecasts become available.

3. Consolidated earnings forecasts for fiscal year 2021 (from April 1, 2020 to March 31, 2021)
The consolidated earnings forecasts for the fiscal year ending March 31, 2021 is presently uncertain because it isdifficult to reasonably estimate the impact of the novel coronavirus disease (COVID-19) at this time. We will make anannouncement promptly after the consolidated earnings forecasts become available.
* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.:
Yesb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(Note) For details, please see “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to consolidated financial
statements (Changes in accounting policies)” of the attached materials to the quarterly financial results report on page 21.

(3) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of March 31, 2020:
411,339,992 shares
As of March 31, 2019:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2020:
26,124,409 shares
As of March 31, 2019:17,065,526 sharesc. Average number of shares during the period
For the year ended March 31, 2020:
393,170,633 shares
For the year ended March 31, 2019:394,275,053 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per share information” onpage 26.

*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts and other noteworthy events• The consolidated earnings forecasts for the fiscal year ending March 31, 2021 is presently uncertain because it is difficult to reasonably
estimate the impact of COVID-19 at this time. We will make an announcement promptly after the consolidated earnings forecasts become
available. For details, please see “1. Overview of Operating Results and Others, (4) Future outlook” of the attached materials to the financial
results report on page 9.
• The Company plans to post supplementary materials on financial results on the Company’s website promptly after the announcement of thefinancial results.

Attached Materials
Index
1. Overview of Operating Results and Others .............................................................................................................. 2(1) Overview of operating results for the fiscal year ended March 31, 2020 ........................................................... 2(2) Overview of financial position for the fiscal year ended March 31, 2020 ........................................................... 9(3) Overview of cash flows for the fiscal year ended March 31, 2020 ..................................................................... 9(4) Future outlook.................................................................................................................................................... 9(5) Operational and financial issues to be addressed ............................................................................................. 9
2. Fundamental Approach to Selection of Accounting Standards............................................................................... 10
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 11(1) Consolidated balance sheet ............................................................................................................................ 11(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 14(3) Consolidated statement of changes in equity .................................................................................................. 17(4) Consolidated statement of cash flows ............................................................................................................. 19(5) Notes to consolidated financial statements ..................................................................................................... 21(Notes to premise of going concern)................................................................................................................ 21(Significant matters forming the basis of preparing the consolidated financial statements)............................. 21(Changes in accounting policies) ..................................................................................................................... 21(Segment information, etc.) ............................................................................................................................. 22(Per share information) .................................................................................................................................... 26(Important subsequent matters) ...................................................................................................................... 26
4. Others .................................................................................................................................................................... 28
Operating revenue by business.............................................................................................................................. 28-1-

1. Overview of Operating Results and Others(1) Overview of operating results for the fiscal year ended March 31, 2020
In the fiscal year ended March 31, 2020, the economic environment deteriorated substantially from January
2020 onward due to the global spread of COVID-19, despite gradual economic recovery having held course
amid underlying strengths in corporate earnings until the nine months of the fiscal year ended March 31, 2020.
The outlook for economic recovery both in Japan and overseas remains unknown given uncertainties as to thepotential pace of coronavirus transmission ahead and timing as to when the pandemic might subside.
Meanwhile, amid a scenario of e-commerce market expansion brought about by rapidly changing styles ofconsumption, in addition to the severe business environment of logistics industry continued during the ninemonths of the fiscal year ended March 31, 2020, as a result of factors that included tightening of the domestic
labor market and a slowdown in personal spending due to effects of Japan’s consumption tax hike, fromJanuary 2020 onward, the logistics industry encountered dwindling overall economic activity, including
worldwide stagnation of the production activities in manufacturing industry and international trade amid the
spread of COVID-19, sharply declining inbound travel demand due to restrictions placed on movement, andvoluntary suspension of business activities particularly in the service industry. Ramifications of this situation
with respect to the business environment going forward remain uncertain.
Under such circumstances, the Yamato Group has been striving to enhance its management foundations inorder to continue achieving sustainable growth and thereby enable the Group to keep providing high-quality
services based on “KAIKAKU 2019 for NEXT100” medium-term management plan, which while “Work Style
Reform” is centered on management, focuses on reforms in the three areas of “structural reform in the Delivery
Business,” “reform of revenue and business structure geared to achieving discrete growth,” and “reform ofGroup management structure geared to achieving sustainable growth.” At the same time, we have been
continuing to provide our logistics services such as those of our TA-Q-BIN business in a manner that places toppriority on safety of our customers and employees in terms of addressing the spread of COVID-19.
In the Delivery Business, we worked to strengthen cost controls while engaging in adequate pricing initiatives
and promoting sales to new customers in order to regain profitability. Moreover, we have been taking steps toensure consistent operations of our TA-Q-BIN network, as an element of social infrastructure, in a manner that
addresses changes in demand and logistics brought about by spread of COVID-19.
In the non-delivery businesses, we took steps to expand our existing service offerings by making the best useof the strengths of the Group companies, while also strengthening account management on a Group-wide basis
as we aggressively promoted solution sales for addressing customers’ business challenges.
Our consolidated financial results for the fiscal year ended March 31, 2020 were as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of the Parent

Fiscal year ended
March 31, 2019
1,625,315
58,34554,259Fiscal year ended
March 31, 2020
1,630,146
44,701
40,62525,682

22,324

ChangeGrowth (%)

4,831(13,644)(13,633)

0.3(23.4)(25.1)(3,358)(13.1)As mentioned above, operating revenue amounted to 1,630,146 million yen, up 4,831 million yen from theprevious fiscal year. This is largely attributable to an increase in the TA-Q-BIN unit price, amid promotion of
structural reforms in the Delivery Business. Operating expenses amounted to 1,585,445 million yen, up 18,475
million yen from the previous fiscal year. This is largely attributable to an increase in personnel expenses anddespite a decrease in commission expenses, mainly as a result of having increased the workforce looking
toward building collection and delivery structure.
As a result, operating profit amounted to 44,701 million yen, down 13,644 million yen from the previous fiscal
year.
Ordinary profit amounted to 40,625 million yen, largely attributable to having recorded impairment of goodwill
relating to the affiliates overseas as a share of loss of entities accounted for using equity method.

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As a result, profit attributable to owners of the Parent amounted to 22,324 million yen, down 3,358 million yen
from the previous fiscal year.
Initiatives for the entire Yamato Group① The Yamato Group took steps on a Group-wide basis to develop a vibrant working environment, which ismore “employee-friendly” and “rewarding,” centered on the “Office for Work Style Reform” established in
Yamato Transport Co., Ltd., and its “Working Styles Innovation Committees” in its respective Group
companies, as a means of placing utmost priority on “Work Style Reform” in order to practice “Inclusive
Management,” a Yamato Group founding principle. Moreover, we have pursued our “Value Networking”
design, on the basis of creating business models for generating a high level of added value through the
combined efforts of our respective businesses, while at the same time contributing to growth strategies
and international competitive strengths of the Japanese economy. Meanwhile, we are also taking steps toforge a robust corporate culture that acts as a foundation for business creation and development.
② We continued to drive initiatives for a robust corporate culture. We worked on enhancing efficiency andcredibility in operations, by improving our transport structure and digital technologies to enable visualmonitoring of operating amount. We actively engaged in ESG-related initiatives for achieving sustainablegrowth, which has involved implementing safety and environmental measures, undertaking efforts toprosper communities, and taking drastic and comprehensive measures to rebuild Group governance.
③ To further evolve our “Value Networking” design, we strove to craft business models that deliver a highlevel of added value by leveraging the Yamato Group’s business network. Also, to address variedcustomer needs in Japan and overseas, we have made effective use of our innovative network platform
consisting of the “Haneda Chronogate,” “Okinawa International Logistics Hub,” and respective gateways
linking major cities in the Kanto, Chubu, and Kansai regions, in addition to our existing “last mile” network,and have been striving to strengthen account management on a Group-wide basis.
④ In our business looking toward global markets, we worked to collaborate among five regions, Japan, East
Asia, South East Asia, Europe and the Americas. Meanwhile, we also strengthened our capabilities ineach geographic region to respond to the growth of cross-border logistics, and also took steps tostrengthen management of our businesses that involve global operations. In addition, we actively
promoted efforts to build cross-border networks that provide substantial added value by leveraging ourcertification under international standards pertaining to small parcel chilled and frozen goods delivery
services, such that has already been acquired by eight Yamato Group companies.
⑤ With the aim of improving customer convenience particularly in the e-commerce market, we havecontinuously worked to establish an environment that ensures customers ease in picking up and sending
their parcels. We have been actively promoting efforts to build an open-type network of parcel lockers, andhave worked on other efforts for the development of next-generation logistics services including utilizationof automated driving technologies. Moreover, in order for addressing social issues such as the intensifying
labor shortage, and better responding to the rapidly expanding e-commerce demand, we have engaged instreamlining collection and delivery, labor operations and administrative tasks by promoting digitization of
our overall logistics operations, and in carrying out structural reform of trunk-route transportation for the
purpose of optimizing the entire network for streamlining transportation.
⑥ We have engaged in reform of the Group management structure geared to achieving sustainable growth,and have accordingly formulated our transformation plan “YAMATO NEXT100” which will serve as a granddesign for management of the Group over the medium to long term going forward. At the same time, wehave promoted enhancement of customer contact points and otherwise gave rise to the digitaltransformation (DX) of TA-Q-BIN looking to improve productivity, while also took steps to build logistics
services by collaborating with major e-commerce business operators with our sights set on establishing an
e-commerce (EC) ecosystem.

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Summary of each operating segment

 Delivery
The delivery amount of TA-Q-BIN and Kuroneko DM-Bin services are as follows.
(Million parcels / units)
Category
TA-Q-BIN
Kuroneko DM-Bin

Fiscal year ended
March 31, 2019
1,803
1,211

Fiscal year ended
March 31, 2020
1,799
987

Change(3)(224)

Growth (%)(0.2)(18.5)① In the Delivery Business, the Yamato Group concentrated on TA-Q-BIN-centered business development,
aiming to provide infrastructure that best suits our customers and contribute to enriching people’s lives.
② Until the nine months of the fiscal year ended March 31, 2020, we continued to face a severe businessenvironment as a result of factors that included tightening of the domestic labor market and a slowdown inpersonal consumption due to effects of Japan’s consumption tax hike, amid a scenario of e-commercemarket expansion brought about by rapidly changing styles of consumption. Under those circumstances,
we worked to strengthen cost controls while engaging in adequate pricing initiatives and promoting sales
to new customers in order to regain profitability. In addition, we have been engaging in streamlining
collection and delivery, labor operations and administrative tasks by promoting digitization of our overalllogistics operations, and in carrying out structural reform of trunk-route transportation for the purpose of
optimizing the entire network for streamlining transportation. From January 2020 onward, we encountereddwindling overall economic activity, including worldwide stagnation of the production activities inmanufacturing industry and international trade amid the spread of COVID-19, sharply declining inboundtravel demand due to restrictions placed on movement, and voluntary suspension of business activities
particularly in the service industry. Under those circumstances, we have been taking steps to ensure
consistent operations of our TA-Q-BIN network, as an element of social infrastructure, in a manner that
addresses changes in demand and logistics.
③ In the growing e-commerce market, we expanded sales of the “TA-Q-BIN Compact” and “Nekopos”
services which enable customers to send small parcels simply in respond to diversifying needs brought
about by changing customer lifestyles, and have proceeded with offering a greater number of drop-off
points for sending parcels by collaborating with multiple flea market websites. During the fiscal year underreview, we have been continuing to work in conjunction with flea market websites and e-commercecompanies to provide greater convenience by developing a service environment where individual
customers ship merchandise easily from convenience stores and PUDO station open-type parcel lockers,
and offering a service environment enabling customers who have purchased a product to specify either a
TA-Q-BIN Center, convenience store or PUDO station as a location for pick-up. As for individual customers,
we promoted efforts to increase sales of services enabling customers to complete TA-Q-BIN sending
procedures using their smartphones, and providing them with access to features such as online payment
settlement and anonymous delivery.
④ With respect to corporate clients, we accurately pinpointed managerial challenges and actively proposedsolutions to address those challenges. During the fiscal year under review, we have been continuing tostrengthen account management in coordinated efforts of the Group, and boosting profitability by making
proposals that provide high added value using the Group’s business resources.
⑤ We have been taking steps to improve services for residents geared toward resolving issues facing
communities. In part, this has involved collaborating with numerous municipalities and companies in efforts
that entail helping those who have difficulties doing their shopping and helping to watch over elderly
residents. Moreover, we have also been helping to revitalize local industry particularly through initiatives
that involve supporting tourism and helping to expand sales channels for locally produced products.
⑥ Operating revenue amounted to 1,310,067 million yen, up 1.0% from the previous fiscal year owing to ahigher TA-Q-BIN unit price amid promotion of structural reforms in the Delivery Business. Operating profit
amounted to 27,249 million yen, down 33.2% from the previous fiscal year mainly due to an increase inpersonnel expenses and despite a decrease in commission expenses.

-4- BIZ-Logistics① In the BIZ-Logistics Business, the Yamato Group is providing customers with innovative logistics systems
by combining management resources such as the TA-Q-BIN network with logistics functions, maintenanceand recall handling functions, cleansing functions for medical devices and international transportation
functions.
② For e-commerce, we are offering various one-stop services including placing and accepting orders, visualmonitoring of inventories for customers and enabling speedier shipments. Moreover, we have been
providing services to medical device-related business operators that help such customers revolutionize
logistics through our comprehensive support extending beyond delivery to encompass cleaning,
maintaining and relending surgical equipment returned by hospitals. During the fiscal year under review,
we promoted efforts to increase sales of this service, particularly among our existing customers.
③ Operating revenue amounted to 143,934 million yen, down 2.4% from the previous fiscal year mainly due
to a decrease in our handling of some customer business as a result of carrying out adequate pricing
initiatives in services designed for e-commerce. Operating profit was 4,975 million yen, up 49.5% from theprevious fiscal year mainly as a result of overhauling distribution centers.

 Home Convenience① Given the situation where there were inappropriately billings to corporate clients for moving-related
services provided to their employees, Home Convenience Business continued to take steps to prevent a
recurrence of such incidents through efforts that have included fundamentally overhauling the moving
business and revamping product design. During the fiscal year under review, we started providing
individual customers with our new “My Moving” moving-related services for single people, and accordingly
worked to improve quality and expand the service territory.
② Operating revenue amounted to 27,805 million yen, down 16.8% from the previous fiscal year mainly due
to a decrease in moving demand as a result of the spread of COVID-19, in addition to effects of havingsuspended moving-related services. As for profits, the segment posted an operating loss of 10,061 millionyen.

 e-Business① In the e-Business, the Yamato Group helps customers streamline their business processes and solve
potential issues by proactively developing solution platform business that combines logistics technology
and financial technology with information technology. In addition to the conventional information
technologies, we are promoting use of emerging technologies that harness artificial intelligence (AI), theInternet of things (IoT) and other such innovations to accelerate growth of the Yamato Group businesses.
② We have been offering the “Certified Web Retrieval Service” for the financial industry which enables
subscribers to safely and simply submit documentation. The service helps our customers streamline theiradministrative operations by enabling service subscribers to use their smartphones, personal computersand other such devices to upload identification papers and other documents necessary when completing
application processes. During the fiscal year under review, we promoted efforts to expand sales of the“Multi-value Charge Service” which facilitates payments to individuals from business enterprises involved
in second-hand item purchasing and e-commerce returned merchandise, and accordingly enables suchindividuals to receive cashless payments in the form of e-money and other options of their choice.
③ Operating revenue amounted to 30,579 million yen, up 15.0% from the previous fiscal year mainly
generated from our outsourcing services that have in part involved establishing systems for cashless
reward point operations accompanying Japan’s consumption tax hike, and also due to progress achieved
with respect to expanding sales of our “IT Asset Management Optimization Service” involving total support
encompassing everything from equipment procurement to asset management of personal computers andother information technology assets. Operating profit was 10,668 million yen, up 22.1% from the previous
fiscal year.

-5- Financial① In the Financial Business, the Yamato Group has been developing settlement and financial services
tailored to a range of customer needs for payment collection of mail-order products, business-to-business
transaction settlement, and vehicle leasing.
② With respect to our payment settlement services, in addition to providing our mainstay service “TA-Q-BIN
Collect,” we have also been promoting increased customer use of both our “Kuroneko Web Collect”
comprehensive internet-based transaction settlement service, “Kuroneko Pay After Delivery Services” andour e-money settlement services. During the fiscal year under review, we have been taking steps toexpand sales of our “Raku-uru Cart” service. This service helps business operators newly enter the
e-commerce market, which is poised for expansion going forward, by providing one-stop support in termsof shopping cart function, payment settlement and delivery services. Moreover, with respect to our“Kuroneko Pay After Delivery Services,” we have been taking steps to expand sales of the“smartphone-based payment” feature that enables users to select from various payment options displayedon their smartphone device after having received products, which is in addition to the already available“payment slip-based payment” feature whereby a payment slip is sent by postal mail to the customer who
has made a purchase.
③ Operating revenue amounted to 77,072 million yen, down 3.6% from the previous fiscal year mainly due toa decrease in “TA-Q-BIN Collect” delivery amount due to a shrinking market for cash-on-delivery brought
about by changing payment settlement needs, and despite increases in the use of our “Kuroneko Web
Collect” and “Kuroneko Pay After Delivery Services.” Operating profit was 6,322 million yen, up 1.3% fromthe previous fiscal year mainly due an absence of the loss on valuation of inventories in the lease service
business recognized in the previous fiscal year.

 Autoworks① In the Autoworks Business, we provide value to logistics operations and logistics service providers in theform of “improvement of vehicle maintenance convenience” and “reduced maintenance expenses,” as well
as services that help our customers improve their asset utilization ratios, by adding options of “maintaining
and safeguarding logistics facilities and equipment, and improving such workplace environments,” alongwith “offering insurance plans tailored to customer risk management needs” which provide coverage forsuch assets.
② During the fiscal year under review, we achieved greater use of maintenance services as a result of having
carried out initiatives to increase sales of such services through close communication with customers.
③ Operating revenue amounted to 24,922 million yen, down 4.1% from the previous fiscal year mainly as aresult of a decrease in fuel sales volume. Operating profit was 4,295 million yen, down 3.1% from theprevious fiscal year.

 Other① The “JITBOX Charter service” provides transportation by transport box. The service takes advantage of its
network consisting of multiple companies and provides added value to customers through timely delivery
and frequent, right-amount delivery. During the fiscal year under review, service use grew steadily due tofavorable results with respect to existing services.
② Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
decreased 14.7% from the previous fiscal year to 1,893 million yen.
ESG Initiatives① The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. Accordingly, its transport safety management practices in that regard involve drawing up its
Safety Management Regulations, building up its transport safety management systems, and formulating
fiscal year plans, all centered on respective Group companies whose main operations involve transport.
During the fiscal year under review, the entire Yamato Group including its overseas operations carried out
the “Zero Traffic Accidents Campaign,” and Yamato Transport Co., Ltd. held the “9th Nationwide Safety

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②

③

④

⑤

⑥

Competition,” in order to improve safety awareness on a Group-wide basis and engaged in efforts toheighten safety awareness and improve driving skills. In addition, since 1998 we have been holding our“Safety Classes for Children,” through which we convey the importance of traffic safety, in day carefacilities, kindergartens and elementary schools across Japan. A total of about 3.40 million people have
now participated.
In order to earn the confidence of Yamato Group’s customers and society through acting as a company
that forms an important part of social infrastructure, we have promoted management in conformity withcompliance and worked on the Group-wide initiatives with respect to “Work Style Reform” throughdeveloping a vibrant working environment which is more “employee-friendly” and “rewarding” foremployees, such as promoting reviewing our management rules on working hours and creating newworking styles for our employees. As a result, we have made progress particularly in terms of reducing
total working hours and improving the rate of annual paid vacation acquisition, as well as improving
employees’ awareness regarding work.
The Yamato Group carried out drastic and comprehensive measures to rebuild Group governance, withthe aim of enhancing sound Group management, with efforts being spearheaded by our “Group
Governance Project” in place at the Company. During the fiscal year under review, in order to foster asense of ethics throughout the Group, further instill our corporate philosophy, and promote such practices
in our operations, we partially revised our Corporate Stance, which constitutes our corporate philosophy,
as well as our Employee Code of Conduct, and furthermore implemented ethics education for all of ouremployees. Meanwhile, we also engaged in efforts that entailed developing personnel who are responsible
for strengthening merchandise inspection systems of the overall Group and enhancing compliance at our
respective Group companies.
The Yamato Group recognizes climate change, air pollution, decrease of resources, and loss of
biodiversity as important issues to address in order to realize a sustainable society. We have been
implementing measures to address climate change by shifting to use of vehicles that produce lower
carbon dioxide emissions, introducing small commercial-use EV trucks to our fleets, and handlingcollection and delivery in a manner that does not involve use of automobiles. During the fiscal year underreview, we reduced carbon dioxide emissions by heightening the efficiency of our trunk-routetransportation to major cities, and we extended the zone of operations served by our Super-Full Trailer
SF25, which helps reduce long-haul driver workloads. Accordingly, such routes now also encompass
Fukuoka Prefecture in Japan’s Kyushu region, in addition to the previous destinations of Kanagawa
Prefecture in the Kanto region and Osaka in the Kansai region. We also hold “Kuroneko Yamato
Environmental Class” sessions designed to provide support for environmental education of children who
will bear responsibilities of the next generation. We have held such classes on an ongoing basis
nationwide since 2005, attracting about 250 thousand participants so far.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on the concept of “Creating Shared Value (CSV).” During the fiscal year under review,
we promoted our “combined passenger-cargo” operations using scheduled-route passenger buses andrailways, thereby helping to improve lifestyle services for local residents by keeping scheduled bus andrailway networks running in hilly and mountainous areas where populations are substantially declining andgetting older, and also by streamlining distribution in those locations. With the aim of stimulating the
economies of local regions while improving convenience for tourists, particularly for the increasing
numbers of overseas visitors, etc., we promoted initiatives involving our hands-free travel service which
has entailed expanding our offerings to include baggage check services and same-day delivery of tourists’luggage to their lodging facilities. For residents in suburban areas which are undergoing changes withrespect to people’s life stages, we have been providing support for community development geared toensuring that local residents are able to lead comfortable lives. Our efforts have involved helping torevitalize local communities where we have our business locations, and providing such residents withlifestyle support services that include handling shopping and housekeeping on their behalf. We have beenworking with government bodies in efforts geared to revitalizing communities and resolving issues byleveraging the Yamato Group’s management resources with respect to initiatives that include helping towatch over elderly residents, supporting tourism, and expanding sales channels for locally produced
products in respective regions throughout Japan. The number of the Yamato Group’s initiatives, including
the ones under discussion, totaled 1,102.
Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people can freely
enjoy a lifestyle as a member of each community. Specifically, we engage in ongoing programs that-7-

support economic independence of people with disabilities, such that include actively employing people
with disabilities at the Swan Bakery which makes and sells bread, providing them with workplaces throughthe consigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they takepart in training to acquire skills and knowledge necessary for employment.
⑦ The Yamato Group has positioned the theme “Sustainability initiatives – Management embodying theenvironment and society” as one element of its business transformations under its transformation plan
“YAMATO NEXT100” formulated in January 2020, which is to serve as a grand design for the Group’s
management over the medium to long term. The Yamato Group cites dual visions in terms of paving theway to a sustainable future, one of which is “Connect. Deliver the Future via Green Logistics” and theother of which is, “Through Co-Creation and Fair Business Activities, Help Create a Society That Leaves
No One Behind.” Underpinned by those two visions, we will take steps to address material issues thathave been identified with the aim of increasing the efficiency of transportation and providing delivery that isbetter for the planet, our lifestyles, and the economy, by attentively connecting people with resources and
data.

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(2) Overview of financial position for the fiscal year ended March 31, 2020
Total assets were 1,100,739 million yen as of March 31, 2020, down 22,920 million yen from the end of theprevious fiscal year. The decrease was largely attributable to the recording of share of loss of entities
accounted for using equity method, a 13,702 million yen decrease in investment securities mainly due to fairvalue assessment and sale, and a 6,178 million yen decrease in notes and accounts receivable - trade mainlyin the Financial Business.
Liabilities decreased 12,366 million yen to 537,904 million yen from the end of the previous fiscal year. The
decrease was largely attributable to an 11,856 million yen decrease in notes and accounts payable - trade
mainly in the Financial Business and a 12,957 million yen decrease in non-current asset payment obligations
mainly in the Delivery Business, despite a 9,200 million yen increase in borrowings.
Total net assets were 562,835 million yen, down 10,553 million yen from the end of the previous fiscal year. The
major factors included the recording of profit attributable to owners of the Parent of 22,324 million yen, payment
of dividends of surplus of 11,433 million yen and purchase of treasury shares amounting to 15,685 million yen.
Accordingly, the equity ratio was at the same level as in the previous fiscal year at 50.4%.
(3) Overview of cash flows for the fiscal year ended March 31, 2020
Net cash provided by operating activities amounted to 74,433 million yen, which is a decrease of 43,660 million
yen compared with the previous fiscal year. This is largely attributable to a 7,676 million yen decrease due tothe recording of profit before income taxes of 44,581 million yen, a 15,540 million yen decrease in trade
payables, and a 16,289 million yen increase in income taxes paid.
Net cash used in investing activities was 49,943 million yen. Compared with the previous fiscal year, theamount of net cash used decreased by 4,928 million yen. This is largely attributable to a 6,794 million yen
increase in purchase of property, plant and equipment, despite increases in proceeds from sales of property,
plant and equipment of 8,927 million yen and proceeds from sales of investment securities of 1,897 million yen.
Net cash used in financing activities was 22,368 million yen. Compared with the previous fiscal year, theamount of net cash used decreased by 48,578 million yen. This is largely attributable to the absence in thefiscal year under review of the 10,000 million yen recorded for redemption of bonds in the previous fiscal year
and a 56,142 million yen increase in proceeds from borrowings, despite a 15,687 million yen increase inpurchase of treasury shares.
As a result of the above, cash and cash equivalents were 196,662 million yen as of March 31, 2020, up 2,012
million yen from the end of the previous fiscal year.
(4) Future outlook
The economic environment deteriorated substantially due to the global spread of COVID-19. The outlook foreconomic recovery both in Japan and overseas remains unknown given uncertainties as to the potential paceof coronavirus transmission ahead and timing as to when the pandemic might subside. The logistics industry
encountered dwindling overall economic activity, including worldwide stagnation of the production activities inmanufacturing industry and international trade, sharply declining inbound travel demand due to restrictions
placed on movement, and voluntary suspension of business activities particularly in the service industry.
Ramifications of this situation with respect to the business environment going forward remain uncertain.
Under such circumstances, as it is difficult to reasonably calculate the consolidated earnings forecasts for the
fiscal year ending March 31, 2021 at this time, they have not yet been determined. We will make anannouncement promptly after the consolidated earnings forecasts become available.
(5) Operational and financial issues to be addressed
As a social infrastructure provider, the Yamato Group will confront social issues. In order to continuously
contribute to the realization of a prosperous society by creating a “new logistics ecosystem” that meets theneeds of customers and society, we will tackle the issues below based on our transformation plan “YAMATO
NEXT100,” which has been formulated as a grand design and is the framework for management over the
medium to long term.

-9-① In response to the spread of COVID-19 and to ensure that customers can use TA-Q-BIN with peace ofmind, we are making sure that employees practice full hygiene management, implementing contact-freedeliveries and other infection prevention measures when interacting with customers, and using our
website and other channels to share information. We will strive to continue providing logistics services,
including TA-Q-BIN, with the safety of customers and employees as the top priority.
② In order to further enhance a management structure that enables us to confront customer and social
needs, we will reorganize from our current structure based on functions to a new structure that is based onfour customer segments (Retail, Regional Corporate, Global Corporate, and EC), and we aim to realize
management that can carry out timely responses centered on the perspective of our customers by
reducing the distance between management and our frontline personnel to realize swift decision making.
We will also continue to carry out measures to strengthen Group governance, including inspecting all of
the Group’s products and services, monitoring the operation of the whistle-blower system, andimplementing ethics education for employees, with the aim of enhancing sound Group management.
③ In order to promote “Inclusive Management” that enables frontline personnel to focus more on ourcustomers, we will shift to a data-driven management style. We will advance the digital transformation of
our TA-Q-BIN service to realize a stable revenue base for the service and create an environment thatallows sales drivers to spend more time for providing services for customers. We will use data analysis
and AI to improve the accuracy of demand and operating amount forecasts, optimize and standardize ourtransport and delivery process and overall operations, and increase the productivity of collections,deliveries, and trunk-route transportation. At the same time, we aim to increase the productivity of sorting
operations over our entire logistics network by introducing a sorting system that uses digitalization androbotics to innovate existing sorting processes.
④ In response to social needs, we will work toward the establishment of an EC (e-commerce) ecosystem
which capitalizes on the high growth potential of the EC market by creating a logistics service that caters
specifically to the shift to EC in various industries. Through co-creation with EC businesses and logistics
operators, we can combine external delivery resources with the Yamato Group’s bases and digitalfoundation to provide an EC delivery service that meets the various needs of EC businesses, customers,
and deliverers, while building an open digital platform that collectively controls all processes, includingordering, transportation, deliveries, inventory management, settlement, and returns.
⑤ In order to strengthen corporate logistics business with the aim of realizing new growth, we will combine
the Group’s management resources for corporate business, such as specialist human resources at eachGroup company, logistics and distribution functions, and the trunk-route transportation network connecting
our distribution centers, to promote customer-orientated account management while also continuing tostrengthen management of our businesses that involve global operations. We will also build a database tostrengthen our ability to propose corporate logistics solutions based on highly accurate, real-time
information and develop solutions that optimize the entire supply chains of our corporate clients.
⑥ We will strike a balance between sustainable growth and the development of a sustainable society bypromoting sustainability initiatives and practicing management embodying the environment and society.
Under “Connect. Deliver the Future via Green Logistics” and “Through Co-Creation and Fair Business
Activities, Help Create a Society That Leaves No One Behind,” our two visions for a sustainable future, wewill achieve logistics that are friendly to the environment, society, and economy by attentively connecting
people, resources, and data, and making transportation more efficient.
⑦ We will bring about an employee-friendly, rewarding working environment where employees can take avibrant approach to work, heighten employee satisfaction, and become a company where a diverse rangeof talent will choose to work by continuing initiatives such as building appealing personnel systems,
adopting a performance evaluation scheme that facilitates a vibrant approach to work by rewarding
employee independence and autonomy, and re-establishing an educational system.

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

- 10 -

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits

195,954

197,226

Notes and accounts receivable - trade

220,159

213,980

Accounts receivable - installment

44,802

46,088

Lease receivables and investments in leases

54,53753,886Merchandise and finished goods

642

552

Work in process

194

165

Raw materials and supplies

2,410

3,497

Other

33,032

28,925

Allowance for doubtful accounts(1,475)(1,439)Total current assets

550,258

542,884

352,141

362,314

Accumulated depreciation(204,191)(208,753)

Buildings and structures, net

147,950

153,561

Non-current assets
Property, plant and equipment
Buildings and structures

Machinery and equipment

70,20173,397

Accumulated depreciation(47,619)(51,562)

Machinery and equipment, net

22,582

21,835208,031

214,177(183,835)(193,345)

24,195

20,831

Land

175,995

175,158

Leased assets

31,53731,260

Accumulated depreciation(9,531)(8,501)

Leased assets, net

22,00622,759VehiclesAccumulated depreciation
Vehicles, net

Construction in progress

8,391

6,417

Other

89,347

81,477

Accumulated depreciation(61,551)(58,206)

Other, net

27,79623,270428,918

423,835

Software17,312

18,182

Other

3,311

2,782

Total intangible assets

20,62420,965

Total property, plant and equipment
Intangible assets- 11 -

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Investments and other assets
Investment securities

54,01340,310Long-term loans receivable

4,039

5,723

Leasehold deposits

18,342

18,670161

123

Deferred tax assets

44,38545,611

Other

3,917

4,176

Retirement benefit asset

Allowance for doubtful accounts(1,002)(1,562)

Total investments and other assets

123,858

113,054

573,401

557,855

1,123,659

1,100,739

Notes and accounts payable - trade158,938

147,081

Short-term borrowings

60,80075,500Total non-current assets
Total assets
Liabilities
Current liabilities

Current portion of bonds payable–

10,000

Lease obligations

2,791

3,578

Income taxes payable

23,747

20,377

Deferred installment income

5,341

5,028

Provision for bonuses

35,84435,866

Other

122,961

111,379

Total current liabilities

410,423

408,811

Non-current liabilities
Bonds payable

10,000–Long-term borrowings

19,50014,000

Lease obligations

20,142

21,760

Deferred tax liabilities

4,180

2,064

Retirement benefit liability

74,50879,230Other

11,515

12,037

Total non-current liabilities

139,847

129,093550,270

537,904

Total liabilities- 12 -

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Net assets
Shareholders’ equity
Share capital

127,234

127,234

Capital surplus

36,81336,813Retained earnings

431,497441,746

Treasury shares(39,085)(54,770)

Total shareholders’ equity

556,459

551,024

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

12,975

8,157

Foreign currency translation adjustment

(515)

(317)

Remeasurements of defined benefit plans(3,078)(3,692)

Total accumulated other comprehensive income

9,381

4,148

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

7,547

7,662

573,388562,835

1,123,659

1,100,739

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Operating revenue

1,625,315

1,630,146

Operating cost

1,513,988

1,526,102

111,327

104,043

26,09228,553

Provision for bonuses

1,022

1,125

Retirement benefit expenses

997

1,160

Commission expenses

6,704

9,348

Taxes and dues

9,412

9,511

Provision of allowance for doubtful accounts

1,267

1,152

Depreciation

1,412

1,677

Other

8,092

9,099

Total selling, general and administrative expenses

52,981

59,342

58,34544,701

Interest income

153

173

Dividend income

883

921

Operating gross profit
Selling, general and administrative expenses
Personnel expenses

Operating profit
Non-operating income

Gain on sales of vehicles

267

191

Other

1,063

1,089

Total non-operating income

2,367

2,377

Non-operating expenses
Interest expenses

275

422

Share of loss of entities accounted for using equity method

4,872

4,168

Foreign exchange losses

158

648

Other

1,147

1,213

Total non-operating expenses
Ordinary profit

6,453

6,452

54,25940,625

9

7,954

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Compensation for delay damages
Other
Total extraordinary income- 14 -

37

1,299

1,775

–

–

8

1,822

9,262

(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Extraordinary losses
Loss on retirement of non-current assets

309

424

Impairment loss

2,087

990

Loss on valuation of investment securities

1,396

2,347

Loss on liquidation of business

–

1,206

Other

30

338

3,823

5,306

Profit before income taxes

52,25844,581

Income taxes-current

24,651

23,025

Income taxes-deferred

1,656(1,346)

Total income taxes

26,30821,678

Profit25,94922,902

Profit attributable to non-controlling interests

267

578

Profit attributable to owners of the Parent

25,682

22,324

Total extraordinary losses- 15 -

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2019
ProfitFiscal year ended
March 31, 2020

25,94922,902(115)(4,927)

Foreign currency translation adjustment(1,661)

198

Remeasurements of defined benefit plans, net of tax

2,541

(613)

Share of other comprehensive income of entities accounted
for using equity method

273

(273)

Total other comprehensive income

1,038(5,616)26,987

17,285

26,577

17,091410

194

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income(Breakdown)Comprehensive income attributable to owners of the Parent
Comprehensive income attributable to non-controllinginterests- 16 -

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

416,854(39,081)541,821

Changes during period
Dividends of surplus(11,039)(11,039)

Profit attributable to ownersof the Parent

25,682

25,682

Purchase of treasury shares
Disposal of treasury shares

0

(4)

(4)

0

0

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

014,642(4)

14,638127,234

36,813

431,497(39,085)

556,459

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

12,9581,146(5,618)

8,486

7,279

557,586

Changes during period
Dividends of surplus(11,039)

Profit attributable to ownersof the Parent

25,682

Purchase of treasury shares(4)

Disposal of treasury shares0

Net changes in items otherthan shareholders’ equity

16(1,661)

2,539

895

268

1,163

Total changes during period

16(1,661)

2,539

895

268

15,801

12,975(515)(3,078)

9,381

7,547

573,388

Balance at end of period- 17 -

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

127,234

Retained earnings

36,813

431,497

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders’equityTreasury shares(39,085)

556,459(640)
127,234

36,813(640)

430,856(39,085)

555,819

Changes during period
Dividends of surplus(11,433)(11,433)

Profit attributable to ownersof the Parent

22,324

22,324Purchase of treasury shares
Disposal of treasury shares(0)(15,685)(15,685)

(0)

0

0

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–(0)10,890(15,684)(4,794)

127,234

36,813441,746(54,770)551,024

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

12,975(515)(3,078)

9,381

7,547

573,388

Cumulative effects of changes
in accounting policies
Restated balance(640)
12,975(515)(3,078)

9,381

7,547

572,748

Changes during period
Dividends of surplus(11,433)

Profit attributable to ownersof the Parent

22,324Purchase of treasury shares(15,685)

Disposal of treasury shares0

Net changes in items otherthan shareholders’ equity(4,817)

Total changes during period(4,817)

Balance at end of period

8,157

197

(613)

(5,232)

197

(613)

(5,232)

114(9,913)(317)(3,692)

4,148

7,662

562,835- 18 -

114(5,118)

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Cash flows from operating activities
Profit before income taxes

52,25844,581

Depreciation

51,35855,104

Impairment loss

2,087

990

Increase (decrease) in retirement benefit liability

1,935

1,863

Increase (decrease) in provision for bonuses

2,646

26

Interest and dividend income(1,036)(1,095)Interest expenses

405

440

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

4,872

4,168

Loss (gain) on sales of non-current assets(9)(7,953)

Loss on retirement of non-current assets

309

424

Loss (gain) on sales of investment securities(37)(1,299)Loss (gain) on valuation of investment securities

1,396

2,347

Decrease (increase) in trade receivables

3,222

4,478

Decrease (increase) in inventories

(295)

(702)

Increase (decrease) in trade payables

3,772(11,767)

Other, net

6,547

12,214

Subtotal

129,434

103,823

1,028

1,087

Interest paid

(401)

(443)

Compensation for delay damages received

1,775

–

Income taxes paid

(13,744)(30,034)

Net cash provided by (used in) operating activities

118,093

74,433(2,981)(1,273)

Interest and dividends received

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

3,206

1,985

Purchase of property, plant and equipment(48,058)(54,852)

Proceeds from sales of property, plant andequipment

4,233

13,160Purchase of investment securities

(513)

(584)

Proceeds from sales of investment securities
Loan advances
Collection of loans receivable

80

1,977

(2,949)(3,237)

1,250

1,635

Other payments(10,185)(9,644)

Other proceeds

1,044

889

(54,872)(49,943)

Net cash provided by (used in) investing activities- 19 -

(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(13,342)

50,000

Repayments of lease obligations(2,822)(4,366)

Repayments of long-term borrowings(33,600)(40,800)

Redemption of bonds(10,000)–

Purchase of treasury shares(4)(15,691)(11,035)(11,431)

(142)

(79)

0

0

(70,947)(22,368)

Effect of exchange rate change on cash and cash
equivalents

(486)

(109)

Net increase (decrease) in cash and cash equivalents(8,212)

2,012

Cash and cash equivalents at beginning of period

202,863

194,650

Cash and cash equivalents at end of period

194,650

196,662

Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities- 20 -

(5) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 39
Names of major consolidated subsidiaries:
Yamato Transport Co., Ltd.
Okinawa Yamato Transport Co., Ltd.
Yamato Global Express Co., Ltd.
Yamato Logistics Co., Ltd.
Yamato Global Logistics Japan Co., Ltd.
YAMATO TRANSPORT U. S. A., INC.
Yamato Home Convenience Co., Ltd.
Yamato System Development Co., Ltd.
Yamato Financial Co., Ltd.
Yamato Lease Co., Ltd.
Yamato Autoworks Co., Ltd.
YAMATO BOX CHARTER CO., LTD
YAMATO (CHINA) CO., LTD.
YAMATO INVESTMENT (HONG KONG) LIMITEDYAMATO ASIA PTE. LTD.
(2) Non-consolidated subsidiaries, etc.
OTL ASIA SDN. BHD. and certain other subsidiaries are not included within the scope of consolidation.
The total assets, operating revenue, profit, and retained earnings of these non-consolidated subsidiaries
are immaterial and, even taken together as a group, they do not exert a significant influence on the
consolidated financial statements.
2.

Application of equity method(1) Number of affiliates accounted for using equity method: 19
Names of major equity method affiliates:
GD EXPRESS CARRIER BHD.
Packcity Japan Co., Ltd.
GUANGZHOU WISEPOWER TRANSPORTATION& DISTRIBUTION GROUP CO., LTD.
Effective from the fiscal year under review, GEDE ADVISORY INDONESIA and one other company were
included in the scope of the equity method as GD EXPRESS CARRIER BHD., an affiliate accounted forusing the equity method, newly acquired their shares.
(2) Non-consolidated subsidiaries and affiliates not accounted for using equity method
Entities not subject to the equity method such as OTL ASIA SDN. BHD. and certain othernon-consolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliatedcompanies are excluded from the scope of entities accounted for using the equity method because they
do not exert a significant influence on the consolidated financial statements even when taken together asa group, given immateriality of their profit, retained earnings and other financial results corresponding tothe ownership held by the Company.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

(Changes in accounting policies)
Certain subsidiaries which apply the International Financial Reporting Standards adopted IFRS 16 Leases (“IFRS16”) from the fiscal year under review. In line with this adoption, lessees, in principle, recognize all leases as assets
and liabilities on the balance sheet. In applying IFRS 16, retained earnings have been adjusted for the cumulative
effects of changes in accounting policies at the beginning of the fiscal year under review resulting from thetransitional treatment.

- 21 -

In addition, the effect of this application on the consolidated financial statements and per share information isimmaterial.
(Segment information, etc.)
1. Segment information(1) Summary of reportable segment
The reportable segments of the Yamato Group are constituent units of the Yamato Group whose separate
financial information can be obtained. The Board of Directors of the Company periodically examines thesesegments to decide on the allocation of management resources and evaluate business performance.
The Yamato Group consists of six business segments under the umbrella of the Company, a pure holding
company, and these business segments have been formed according to business activity. Business
management is conducted based on this business segment.
Accordingly, based on this business segment, the Yamato Group has the following six reportable segments:
Delivery business, BIZ-Logistics business, Home Convenience business, e-Business, Financial business, andAutoworks business.
Type of services by reportable segment
Reportable segment
Delivery
BIZ-Logistics
Home Convenience
e-Business
Financial
Autoworks

Type of services
Small parcel delivery services for consumers and corporations
Business-to-business distribution
Moving and other lifestyle support services for consumers
Information services for corporations, such as ASP services and development of
information systems
Financial services for consumers and corporations, such as settlement
Collective vehicle management agent business for transportation companies(2) Method of calculating operating revenue, profit/loss, assets and other items by reportable segment
The accounting method used for reported business segments complies with accounting policy that has been
adopted in preparing the consolidated financial statements.

- 22 -

(3) Information regarding the amounts of operating revenue, profit/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2019
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,297,222

147,437

33,404

26,592

79,966

64,136

12,281

12,623

41,1532,856

1,361,359
40,787
718,911

159,719
3,329
77,462

46,027(7,764)
12,281

67,7468,740
44,13682,823
6,244
257,20737,221

2,574

514

3,531

6,000

426

4,836

—

—

—

56,896

5,212

763

1,570

7,103

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment profit (loss)
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
25,985
14,705
1,625,315—
1,625,315
Inter-segment operating revenue or
31,41546,297
210,764(210,764)—transfers
Total
57,40061,002
1,836,079(210,764)
1,625,315
Segment profit (loss)
4,433
19,37275,144(16,798)
58,345
Segment assets
29,37822,385
1,161,762(38,102)
1,123,659
OthersDepreciation
644
621
51,108238
51,346
Investment in entities accounted for
—
—
5,262
9,251
14,514using equity method
Increases of property, plant and
512
7,647
79,706
132
79,838equipment and intangible assets
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services, etc.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 18,593 million yen.
3. Adjustments made are as follows.
(1) The adjustment of negative 16,798 million yen of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of negative 38,102 million yen of segment assets includes eliminations of intersegment receivables andpayables, etc. of negative 184,579 million yen and group-wide assets of 146,476 million yen not allocated to each reportablesegment.
(3) The adjustment of 9,251 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 132 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 130 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

- 23 -

Fiscal year ended March 31, 2020
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

1,310,067

143,934

27,80530,57977,072

56,762

13,836

11,39843,1882,814

1,366,830
27,249687,610

157,770
4,975
74,99839,204(10,061)
12,64873,767
10,66847,45179,887
6,322
245,234

41,585

3,301

433

3,230

4,725

439

1,549

—

—

—

41,852

3,184

324

1,883

4,333

Reconciliation(Note 3)

Amountrecorded inconsolidated
financialstatements(Note 4)

DeliveryOperating revenue
Operating revenue from customers
Inter-segment operating revenue ortransfers
Total
Segment profit (loss)
Segment assets
OthersDepreciation
Investment in entities accounted forusing equity method
Increases of property, plant andequipment and intangible assets

Autoworks

Other(Notes 1, 2)

Total

Financial

Operating revenue
Operating revenue from customers
24,922
15,763
1,630,146—
1,630,146
Inter-segment operating revenue or
30,976
66,018
224,996(224,996)—
transfers
Total
55,89981,782
1,855,142(224,996)
1,630,146
Segment profit (loss)
4,295
36,04579,495(34,794)
44,701
Segment assets
29,56722,457
1,119,968(19,228)
1,100,739
OthersDepreciation
677
841
54,795287
55,083
Investment in entities accounted for
—
—
1,989
8,045
10,034using equity method
Increases of property, plant and
1,638
636
53,854
1,178
55,033equipment and intangible assets
Notes: 1. Other includes business-to-business distribution via JITBOX Charter and shared services, etc.
2. Operating revenue in Other includes dividends which the Company received from the Group companies as a pure holding
company and the effect of this on operating revenue and segment profit is 37,023 million yen.
3. Adjustments made are as follows.
(1) The adjustment of negative 224,996 million yen of segment profit resulted from eliminating transactions among segments,
etc.
(2) The adjustment of negative 19,228 million yen of segment assets includes eliminations of intersegment receivables andpayables, etc. of negative 151,149 million yen and group-wide assets of 131,920 million yen not allocated to each reportablesegment.
(3) The adjustment of 8,045 million yen of investment in entities accounted for using equity method pertains to the amount ofinvestment in those entities accounted for using equity method which are not allocated to respective reportable segments.
(4) The adjustment of 1,178 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 996 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.
5. As described in “Changes in accounting policies,” certain subsidiaries which apply the International Financial Reporting Standards
adopted IFRS 16 Leases (IFRS 16) from the fiscal year under review. In line with this adoption, lessees, in principle, recognize allleases as assets and liabilities on the balance sheet.
In addition, the effect of this application on segment information is immaterial.

- 24 -

2.

Information regarding impairment losses of non-current assets by reportable segment
Fiscal year ended March 31, 2019
(Millions of yen)
Delivery
Impairment loss

BIZ-Logistics
546

Autoworks
Impairment loss

265
Other

Home
Convenience
1,275

—

Financial—

Corporate or
eliminations

Total

—

e-Business

2,087

—
Consolidated

—

2,087

Fiscal year ended March 31, 2020
(Millions of yen)
Delivery
Impairment loss

BIZ-Logistics
266

Autoworks
Impairment loss

Home
Convenience

677
Other

—

e-Business46- 25 -—
Corporate or
eliminations

Total
—

Financial

990—
Consolidated—

990

(Per share information)
Fiscal year ended
March 31, 2019
Net assets per share (Yen)
Basic earnings per share (Yen)
Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. The basis for calculating “basic earnings per share” is as follows.

Fiscal year ended
March 31, 2020

1,435.15
65.14

Fiscal year ended
March 31, 2019
Profit attributable to owners of the Parent (Millions of yen)

1,441.20
56.78

Fiscal year ended
March 31, 2020

25,682

Amount not belonging to ordinary shareholders (Millions of yen)

22,324——

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

25,682

22,324

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

394,275

393,170(Important subsequent matters)(Transactions, etc. under common control)
At its meeting held on January 23, 2020, the Board of Directors resolved to reorganize the Company’s
management structure from that of a pure holding company to that of an operating company, upon conducting
an absorption-type merger and absorption-type company split involving eight consolidated subsidiaries,
including Yamato Transport Co., Ltd., on April 1, 2021.
On the other hand, to avoid problems such as delays in various procedures due to the effect of the spread of
COVID-19, resolutions were made at a meeting of the Board of Directors held on May 15, 2020 to change thedetails of absorption-type merger and absorption-type company split, to remove the Company from the partiesof the said reorganization, and to perform reorganization involving the absorption-type merger andabsorption-type company split between Yamato Transport Co., Ltd., which is a consolidated subsidiary of theCompany, and seven consolidated subsidiaries, including Yamato Logistics Co., Ltd. and Yamato Global
Logistics Japan Co., Ltd.
1. Overview of transactions(1) Absorption-type merger in which Yamato Transport Co., Ltd. is the surviving company
a. Names, and contents of businesses, of the companies involved in the business combinationi. Surviving company
Name:
Yamato Transport Co., Ltd.
Content of business:
Small parcel delivery services for the general public and corporations(TA-Q-BIN, Kuroneko DM-Bin, etc.)
ii. Disappearing company
Name:
Yamato Global Express Co., Ltd.
Content of business:
Small parcel delivery services for corporations (domestic air cargotransport business, etc.)
Name:
Content of business:

Yamato Logistics Co., Ltd.
Logistics services for corporations (total support services including
logistics, medical products distribution services, maintenance support
service, and recall support service)

Name:
Content of business:

Yamato Global Logistics Japan Co., Ltd.
International air cargo service, handling of marine cargo, import/export
customs clearance services, overseas lifestyle support services includinginternational moving, fine art transport business

Name:
Content of business:

Yamato Packing Service Co., Ltd.
Packing / cargo transportation services

Name:Content of business:

Yamato Packing Technology Institute Co., Ltd.
R&D and sale of packaging containers and materials- 26 -Name:
Content of business:

Yamato Financial Co., Ltd.
Settlement services targeting business customers and general
consumers (TA-Q-BIN Collect service, Internet total settlement service,
etc.)

b.

Date of the business combination
April 1, 2021 (planned)c.

Legal form of the business combination
Absorption-type merger with six subsidiaries, namely Yamato Global Express Co., Ltd., Yamato
Logistics Co., Ltd., Yamato Global Logistics Japan Co., Ltd., Yamato Packing Service Co., Ltd.,
Yamato Packing Technology Institute Co., Ltd. and Yamato Financial Co., Ltd. as the disappearing
companies and Yamato Transport Co., Ltd. as the surviving company.

d.

Name of the company after the business combination
The name will not change.

(2) Absorption-type company split in which Yamato Transport Co., Ltd. is the successor company
a. Names of businesses and the contents thereofName of business:
Web-based Mail Order Solution Business of Yamato System Development
Co., Ltd.
Content of business: Offering a package consisting not only of services related to launch of a mailorder business, but also, to fully support the customer’s business, creating a
tailor-made IT system and managing it.
Name of business:
Content of business:

Regional Operation Management Department of Yamato System
Development Co., Ltd.
Sales departmentb.

Date of the business combination
April 1, 2021 (planned)c.

Legal form of the business combination
Absorption-type company split with Yamato System Development Co., Ltd. as the splitting company
and Yamato Transport Co., Ltd. as the successor company.

d.

Name of the company after the business combination
The name will not change.

(3) Overview of the transaction including its purpose
The Company has formulated the transformation plan “YAMATO NEXT100.” This plan has beenformulated as a grand design, which is the framework of the next medium-term management plan,
based on the results and challenges of the current medium-term management plan “KAIKAKU 2019 for
NEXT100” and changes in the external environment.
Based on this plan, in April 2021, the Company will shift its current management structure into amanagement structure comprised of four Business Divisions (Retail, Regional Corporate, Global
Corporate, and EC) and four Functional Divisions, with the objective of reforming the current system ofpartial optimization of functional units to a fully optimized organization structured according to customer
segments to further improve the speed of management.
2. Overview of accounting procedures to be applied
The transaction will be accounted for as a transaction under common control in accordance with the“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January 16, 2019) and the“Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures” (ASBJ Guidance No. 10, January 16, 2019).

- 27 -

4. Others
Operating revenue by business
Fiscal year ended
March 31, 2019
AmountRatio(Millions of yen)(%)
1,199,084
73.8

Fiscal year ended
March 31, 2020
AmountRatio(Millions of yen)(%)
1,217,572
74.7

Kuroneko DM-Bin

73,062

4.5

64,1043.9(12.3)

Express

41,615

2.6

41,6082.6(0.0)

Business segment
TA-Q-BIN

Delivery

100,698

6.2

97,4966.0(3.2)

Eliminations(117,237)
1,297,222
101,012

(7.2)
79.8
6.2

(110,713)

(6.8)

(5.6)

1,310,067
99,414

80.4
6.1

1.0
(1.6)

41,8292.6

41,796

2.6

(0.1)

Total
Trading logistics service
Others *1

31,5681.9

31,6691.9

0.3

Eliminations(26,973)
147,437
46,040

(1.7)
9.1
2.8

(28,946)

(1.8)

7.3

143,934
39,210

8.8
2.4

(2.4)
(14.8)

(0.8)
2.1
0.6
0.5
0.4
3.1

(11,404)

(0.7)

(9.7)

Others(12,636)
33,404
9,373
7,470
5,844
50,82727,805
11,5298,138
6,190
53,309

1.7
0.7
0.5
0.4
3.3

(16.8)
23.0
8.9
5.9
4.9

Eliminations(46,922)(2.9)(48,589)

(3.0)

3.6

Payment

26,592
32,1621.6
2.0

30,57929,448

1.9
1.8

15.0
(8.4)

Lease

40,1812.5

40,3062.5

0.3

Credit & Finance

3,479

0.2

3,344

0.2

(3.9)

Others

7,056

0.4

6,848

0.4

(2.9)

Eliminations(2,913)
79,96650,486
9,620

(0.2)
4.9
3.1
0.6

(2,875)

(0.2)

(1.3)

77,07249,806
8,734

4.7
3.1
0.5

(3.6)
(1.3)
(9.2)

(34,121)
25,985
12,60951,651

(2.1)
1.6
0.8
3.2

(33,618)

(2.1)

(1.5)

24,922
13,37371,724

1.5
0.8
4.4

(4.1)
6.1
38.9

Total
Home
Convenience

e-Business

Home convenience *2
Eliminations
Total
Credit card solution
IT operating
Web-based mail order solution

Total

Financial

Total
Truck solution
Autoworks

OthersEliminations
Total
JITBOX Charter service

Other

1.5

Others

Logistics *1
BIZ-Logistics

Change(%)

Others(69,334)(4.3)
39.9(49,556)(3.0)
14,7050.9
15,763
1.0
7.2
Total
1,625,315
100.0
1,630,146
100.0
0.3
Changes have been made to the business segments, mainly for the purposes of enhancing functions of the respective operations andstreamlining management. The principal changes are shown below. Accordingly, the segment information for the fiscal year ended March 31,
2019 have been restated to reflect the new classification.
*1.
Effective from the fiscal year ended March 31, 2020, in the BIZ-Logistics segment, the segment information has been changed asfollows.
•
Products Logistics is included in Others.
•
Four business divisions, namely Sales and Logistics, Multi maintenance, Technical Network and e-Logistics solution, as well as fourbusiness divisions, namely Medical Logistics, Documents Logistics, e-On Demand solution and Setup and Logistics solution thatbelonged to Others, are presented as Logistics.
*2.
Effective from the fiscal year ended March 31, 2020, in the Home Convenience segment, Business convenience is included in Home
convenience.
Eliminations

Total- 28 -