Translation
April 28, 2021

Consolidated Financial Results for the Year Ended March 31, 2021
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange
9064
https://www.yamato-hd.co.jp/
Yutaka Nagao, President
Atsushi Kashimoto, Managing Executive Officer, Responsible for Finance and Investor Relations
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the ordinary general meeting of shareholders: June 24, 2021
Scheduled date of the commencement of dividend payment:
June 3, 2021
Scheduled date of the submission of annual securities report:
June 18, 2021
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 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Operating revenue

Operating profit

For the year ended Millions of yen% Millions of yen
March 31, 2021
1,695,867
4.0
92,121March 31, 2020
1,630,146
0.3
44,701(Note) Comprehensive income:For the year ended March 31, 2021:
For the year ended March 31, 2020:
Basic earnings per
share(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Diluted earnings
per share%
Millions of yen%
106.1
94,019131.4(23.4)
40,625(25.1)
73,292 million yen (324.0%)
17,285 million yen ((36.0)%)

Return on equity

For the year ended
Yen
Yen
March 31, 2021
151.55—
March 31, 2020
56.78—
(Reference) Equity in earnings of affiliates:
For the year ended March 31, 2021:
For the year ended March 31, 2020:

Millions of yen
56,70022,324

Ratio of operating
profit to operating
revenue

Ratio of ordinary
profit to total assets

%
10.0
4.0
(766) million yen(4,168) million yen%
154.0(13.1)

%
8.6
3.7

%
5.4
2.7

(2) Consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020
(Reference) Equity:

Net assets

Equity-to-asset ratio

Millions of yen
Millions of yen
1,089,991
584,287
1,100,739
562,835
As of March 31, 2021:
576,367 million yen As of March 31, 2020:

Net assets per share

%
52.9
50.4
555,173 million yen

Yen
1,553.45
1,441.20

(3) Consolidated cash flows
Cash flows fromoperating activities
For the year
ended
March 31, 2021
March 31, 2020

2.

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of Yen

123,92174,43344,078(49,943)(123,247)(22,368)

241,284
196,662

Dividends
Annual dividendsFirstquarter
Fiscal 2020
Fiscal 2021

Secondquarter

Yen
—
—

Yen
15.00
16.00

Third
quarter

Fiscalyear-end

Yen
—
—

Total

Yen
26.00
30.00

Yen
41.00
46.00

Fiscal 2022
—
23.00
—
23.00
(Forecast)(Note) Breakdown of year-end dividends in fiscal year ended March 31, 2020:

3.

Cash and cash equivalents
at end of period

Total annual
dividends

Payout ratio(consolidated)

Dividends onequity(consolidated)

Millions of yen
15,92917,089

%
72.2
30.4

%
2.9
3.1

46.00

32.2

Ordinary dividends: 16.00 yen
Commemorative dividends: 10.00 yen

Consolidated earnings forecasts for fiscal year 2022 (from April 1, 2021 to March 31, 2022)
Operating revenue

Half year
Full year

Millions of yen
840,000
1,775,000(Percentages represent year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share

Operating profit
%
4.2
4.7

Millions of yen
28,00095,000%
4.0
3.1

Millions of yen
28,00095,000%0.2
1.0

Millions of yen
6,000
53,000%(57.7)
(6.5)

Yen
16.17
142.85* 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.:
Noneb. Changes other than a:
Nonec. Changes in accounting estimates:
None
d. Restatement:
None(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, 2021:
388,575,592 shares
As of March 31, 2020:
411,339,992 sharesb. Number of treasury shares as of the end of the period
As of March 31, 2021:
17,550,515 shares
As of March 31, 2020:
26,124,409 sharesc. Average number of shares during the period
For the year ended March 31, 2021:
374,149,762 shares
For the year ended March 31, 2020:
393,170,633 shares(Note) For details of the number of shares used to calculate consolidated basic earnings per share, please refer to “Per share information” onpage 28.

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

assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various
reasons. For points to note when using such assumptions and financial projections, please see “1. Overview of Operating Results andOthers, (4) Future outlook” of the attached materials to the financial results report on page 10.
• 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, 2021 ........................................................... 2(2) Overview of financial position for the fiscal year ended March 31, 2021 ......................................................... 10(3) Overview of cash flows for the fiscal year ended March 31, 2021 ................................................................... 10(4) Future outlook.................................................................................................................................................. 10(5) Operational and financial issues to be addressed ........................................................................................... 11
2. Fundamental Approach to Selection of Accounting Standards............................................................................... 12
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 13(1) Consolidated balance sheet ............................................................................................................................ 13(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 16(3) Consolidated statement of changes in equity .................................................................................................. 19(4) Consolidated statement of cash flows ............................................................................................................. 21(5) Notes to consolidated financial statements ..................................................................................................... 23(Notes to premise of going concern)................................................................................................................ 23(Significant matters forming the basis of preparing the consolidated financial statements)............................. 23(Segment information, etc.) ............................................................................................................................. 24(Per share information) .................................................................................................................................... 28(Important subsequent matters) ...................................................................................................................... 28
4. Others .................................................................................................................................................................... 29
Operating revenue by business.............................................................................................................................. 29-1-

1. Overview of Operating Results and Others(1) Overview of operating results for the fiscal year ended March 31, 2021
In the fiscal year ended March 31, 2021, economic activities which had been stagnant due to the global spreadof the novel coronavirus disease (COVID-19) began to reopen. Whereas business sentiment has been showing
signs of improvement, particularly in the manufacturing industry, the outlook for economic recovery both inJapan and overseas remains unknown particularly with the pandemic resurging at home and abroad amid
uncertainties as to the status of COVID-19 transmission ahead and timing as to when the pandemic might
subside. Meanwhile, COVID-19 has accelerated growth in the e-commerce domain across all industries amid a
scenario of changes in lifestyles and the business environment brought about by developments such ascompanies promoting telework arrangements and a shift to online services in the fields of medicine andeducation.
Under such circumstances, the Yamato Group aims to contribute consistently to the realization of a prosperous
society by creating a “new logistics ecosystem” that meets the needs of customers and society. To such ends,
we have promoted initiatives based on our transformation plan “YAMATO NEXT100,” which serves as a granddesign for management over the medium to long term. These initiatives involve engaging in business
transformations encompassing the threefold aims of giving rise to the digital transformation (DX) of TA-Q-BIN,
establishing an e-commerce ecosystem, and strengthening the corporate logistics business, while combining
the Group’s management resources prior to launch of the new management system in April 2021. These
initiatives also involve engaging in infrastructure transformations encompassing the threefold aims of renewing
Group management systems, shifting to data-driven management style, and implementing sustainability
initiatives. In the fiscal year ended March 31, 2021, as the future spread of COVID-19 and when the pandemic
might subside being unclear, with the safety of our customers and employees as the top priority, we strove tocontinually provide logistics services, including TA-Q-BIN. In so doing, we have been working to identify issues
encountered by our customers due to changes in lifestyles and the business environment, and havefurthermore been expanding sales for new delivery services and improving convenience in response to theaccelerating shift to e-commerce across all industries. We have also been engaging in initiatives that entail
providing solutions for building optimal supply chains for both stores and e-commerce. This has involved
strengthening account management on a Group-wide basis and furthermore addressing new needs in the
remote prescription domain of the telehealth field and in the field of education in promoting the GIGA School
concept. Moreover, we have also been expanding collection and delivery capacity as well as optimizing costs.
This has involved building new delivery networks underpinned by alliances with our delivery partners, while also
promoting increased efficiency of collection, delivery and trunk-route transportation by shifting to data-driven
management style and optimally allocating management resources enlisting demand forecasting based on data
analysis.
Our consolidated financial results for the fiscal year ended March 31, 2021 were as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

Fiscal year ended
March 31, 2020
1,630,146
44,701
40,625

Fiscal year ended
March 31, 2021
1,695,867
92,121
94,01922,32456,700ChangeGrowth (%)

65,72047,42053,394

4.0
106.1
131.4

34,376154.0

As mentioned above, operating revenue amounted to 1,695,867 million yen, up 65,720 million yen from theprevious fiscal year. This is largely attributable to having achieved an increase in the parcel delivery volume asa result of having taken action in the burgeoning e-commerce domain. Operating expenses amounted to1,603,745 million yen, up 18,300 million yen from the previous fiscal year. This was mainly due to our taking
steps to optimizing costs by increasing the efficiency of collection and delivery through the optimal allocation ofmanagement resources based on data analysis and by promoting increased efficiency of our trunk-routetransportation and sorting work amid increasing parcel delivery volume.
As a result, operating profit for the fiscal year under review amounted to 92,121 million yen, up 47,420 million
yen from the previous fiscal year.

-2-

Initiatives for the entire Yamato Group① In response to the spread of COVID-19 and to ensure that customers can use TA-Q-BIN with peace ofmind, we have been making sure that employees practice full hygiene management, implementing
contact-free deliveries and other infection prevention measures when interacting with customers, using our
website and other channels to share information, and continuing to provide logistics services, including TAQ-BIN.
② We have been engaging in reform of the Group management structure geared to achieving sustainablegrowth, and accordingly promoting initiatives to achieve our three business transformations and three
infrastructure transformations while combining the Group’s management resources prior to launch of the
new management system in April 2021, based on our transformation plan “YAMATO NEXT100” which has
been formulated to serve as a grand design for management of the Yamato Group over the medium tolong term going forward.
③ In order to promote “Inclusive Management” that enables personnel to focus more on our customers, wehave been shifting to data-driven management style which has involved streamlining and standardizing
our logistics operations through digital transformation (DX), and have been giving rise to objective andscientific decision-making largely by implementing demand and operating amount forecasts and making
optimal allocations of management resources, on the basis of data analysis.
④ In response to social needs, we have been working toward creating a logistics service that caters
specifically to the shift to e-commerce by industries and establishing an e-commerce ecosystem in orderto capitalize on the high growth potential of e-commerce. During the fiscal year under review, we promoted
efforts to expand sales for our new “EAZY” delivery service that improves convenience, safety, andefficiency with respect to purchase, delivery, and pick-up by connecting e-commerce users, e-commercecompanies, and delivery service providers across the board in real-time using digital information, throughour partnerships with major e-commerce companies. In addition, to further improve convenience for pickup, we worked to add a new function that utilizes a digital key to provide a service to drop off packages infront of residences, etc. for customers who live in condominiums and apartment buildings with auto-lockentrances. To optimize logistics for e-commerce vendors with stores in online shopping malls, we
implemented initiatives to further improve convenience and expand sales for services that completely or
partially replace operational functions from order receiving to shipping and delivery.
Moreover, based on alliances with partners with digital technology, we are promoting efforts to expand
sales of services that make it possible to pick up products purchased through e-commerce fromsupermarkets, drugstores and other such establishments that serve as customer lifelines. We are also
embarking on initiatives for sales support to producers enlisting Live Commerce functions in alliance withlive streaming service providers, with the aim of building a new “Innovating Delivery” business model.
⑤ In order to strengthen corporate logistics business, we have been combining the Group’s management
resources for corporate business such as specialist human resources at each Group company, logistics
and distribution functions, and the trunk-route transportation network connecting our distribution centers.
We have also been promoting initiatives for addressing customers’ business challenges and building a
database to provide solutions based on highly accurate, real-time information. Furthermore, we willcontinue to strengthen the management of our international businesses. During the fiscal year underreview, we have also been engaging in initiatives that entail providing solutions for building optimal supply
chains for both stores and e-commerce. This has involved working to identify issues encountered by ourcustomers due to changes in lifestyles and the business environment and furthermore addressing newneeds in the remote prescription domain of the telehealth field and in the field of education in promoting
the GIGA School concept. In addition, we started consolidated transport of reagents for gene testing in theultra-low temperature range to resolve logistics issues in anticipation of further progress in personalized
healthcare and, to fulfill our role as part of the social infrastructure by contributing to the establishment of a
vaccination system, we are engaged in the logistics for the COVID-19 vaccine.
⑥ In order to strike a balance between sustainable growth and the development of a sustainable society, we
have been promoting sustainability initiatives, and have furthermore been taking steps to address material
issues that have been identified with the aim of increasing the efficiency of transportation and providing
delivery that is better for the planet, our lifestyles, and the economy, by attentively connecting people withresources and data. This effort has been underpinned by our dual visions in terms of paving the way to asustainable future, one of which is “Connect. Deliver the Future via Green Logistics.” and the other ofwhich is, “Through Co-Creation and Fair Business Activities, Help Create a Society That ‘Leaves No One
Behind.’”-3-

⑦ We have transformed to a fully optimized organization structured according to customer segments andpromoted efforts to revamp the Group’s management structure to further accelerate management in orderto further enhance a management structure that enables us to confront customer and social needs.
Furthermore, in April 2021, we launched a new Group management structure. The Group management
structure consists of business units under the Company, which serves as a pure holding company, upon
the integration of the consolidated subsidiary Yamato Transport Co., Ltd. and seven other Group
companies. The Group Management structure consists of: Retail Business Unit consisting of Retail
Business Division; Corporate Business Unit consisting of Corporate Business Division, Global SCM
Business Division, and EC Business Division; Functional Divisions; and Corporate function. In conjunction
with this revamping of the Group’s management structure, we plan to change the previous six operating
segments to segments according to the two businesses of “Retail Business Unit” and “Corporate Business
Unit.”⑧ We have drawn up the Yamato Group’s medium-term management plan, “One Yamato 2023,” with thefiscal year ending March 31, 2024 set as its final fiscal year. Grounded on progress and results achieved
with respect to initiatives implemented based on our transformation plan “YAMATO NEXT100,” the “OneYamato 2023” plan takes into account the accelerating industry-wide shift to e-commerce prompted by
rapidly changing lifestyles and distribution structure. Under the plan, the Group will aim to provide value toour individual and corporate clients, as well as society as a whole. To such ends, we will facilitatetransformation across the entire supply chain extending from suppliers and manufacturers to consumers,
fully leveraging our business resources concentrated under our concept of serving as a truly “OneYamato.”Summary of each operating segment

 Delivery
The delivery volume 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, 2020
1,799
987

Fiscal year ended
March 31, 2021
2,096
826

Change297(161)

Growth (%)
16.5(16.3)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 During the fiscal year under review, as the future spread of COVID-19 and when the pandemic might
subside being unclear, with the safety of our customers and employees as the top priority, we pursued
stable operations of our TA-Q-BIN network. In addition, we have been engaging in streamlining collection
and delivery, labor operations and administrative tasks by promoting digitization of our overall logistics
operations, and in advancing structural reform of trunk-route transportation for the purpose of optimizing
the entire network for streamlining transportation.
③ With respect to the burgeoning e-commerce domain, we promoted efforts to expand sales for our new“EAZY” delivery service that improves convenience, safety, and efficiency with respect to purchase,delivery, and pick-up by connecting e-commerce users, e-commerce companies, and delivery service
providers across the board in real-time using digital information, through our partnerships with major ecommerce companies. In addition, to further improve convenience for pick-up, we worked to add a new
function that utilizes a digital key to provide a service to drop off packages in front of residences, etc. forcustomers who live in condominiums and apartment buildings with auto-lock entrances. Moreover, basedon alliances with partners with digital technology, we promoted efforts to expand sales for services thatmake it possible to pick up products purchased through e-commerce from supermarkets, drugstores andother such establishments that serve as customer lifelines. We are also embarking on initiatives tofacilitate sales to consumers enlisting Live Commerce functions in alliance with live streaming service
providers, with the aim of building a new “Innovating Delivery” business model.
④ As for individual customers, we worked to improve convenience by providing services enabling customers
to complete TA-Q-BIN sending procedures using their smartphones, and providing them with access tofeatures such as online payment settlement and anonymous delivery. Also, to further increase
convenience through support for cashless payments with regard to payment of TA-Q-BIN fees and other-4-

transactions, we have created an environment to introduce six new types of QR code payment settlement,in addition to the current methods using cash, e-money, and online payment settlement. Meanwhile withrespect to corporate clients, we have been promoting initiatives for addressing their business challenges.
Such efforts have involved striving to identify issues encountered by our customers due to changes in thebusiness environment and strengthening account management in coordinated efforts of the Group. A
specific example of such initiatives is our provision of solutions tailored to pharmacies engaged in the
remote prescription domain.
⑤ We have been taking steps to improve services for residents geared toward resolving issues facing
communities. In part, this has involved collaborating with municipalities and companies in efforts that entail
helping those who have difficulties doing their shopping and helping to watch over elderly residents. In
particular, we have been addressing issues that have emerged for elderly residents, such as the increasein the number of elderly people living alone and a weakening of community bonds in local communities,
labor shortages and aging of staff at local comprehensive support centers, community members andothers who watch over elderly people, and the spread of COVID-19 which has made it difficult for those
who live far away to easily visit their family members. To such ends, we conducted a nationwide expansionof the areas where we provide our monitoring services, which utilize IoT light bulbs that can be connectedto the outside world via the internet and Yamato Transport’s management resources.
Moreover, we have also been helping to revitalize local industry particularly through initiatives that involve
helping to expand sales channels for locally produced products.
⑥ Operating revenue amounted to 1,418,993 million yen, up 8.3% from the previous fiscal year owing to ahigher parcel delivery volume as a result of having taken action in the burgeoning e-commerce domain.
Operating profit amounted to 77,195 million yen, an increase of 49,945 million yen from the previous fiscal
year from increasing the efficiency of collection and delivery through the optimal allocation of management
resources based on data analysis and promoting increased efficiency of our trunk-route transportation andsorting work amid increasing parcel delivery volume.

 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 We have promoted a Group-wide approach to account management with the aim of providing totallogistics solutions that facilitate supply chain transformation, thereby addressing challenges encounteredby our customers due to changes in the business environment, amid the accelerating industry-wide shift toe-commerce. During the fiscal year under review, we worked to optimize the construction of supply chains
to contribute to business improvements, such as optimization of stock for both stores and e-commerce,
speedy delivery and reductions in transportation costs by seamlessly linking our nationwide network ofbusiness locations and transportation network, which are strengths of the Yamato Group, and making
digital information visible, for the sake of business operators working to enhance their operations in the ecommerce domain while developing retail stores. In addition, to optimize logistics for e-commerce vendors
with stores in online shopping malls, we used our partnerships with major e-commerce companies toimplement initiatives to further improve convenience and expand sales for services that completely or
partially replace operational functions from order receiving to shipping and delivery.
In addition, we started consolidated transport of reagents for gene testing in the ultra-low temperature
range of minus 70 degrees Celsius or below to resolve logistics issues in anticipation of further progress inpersonalized healthcare and, to fulfill our role as part of the social infrastructure by contributing to theestablishment of a vaccination system, we are engaged in the logistics for the COVID-19 vaccine.
③ Operating revenue amounted to 146,609 million yen, up 1.9% from the previous fiscal year mainly
resulting from expanding sales generated by trading logistics services, which provided emergency
transport of medical and sanitary products and also tapped increasing demand for cross-border ecommerce, despite decreases in our handling of overseas lifestyle support services and fine art transport
due to restrictions placed on movement and cancellations of art exhibitions associated with the spread of
COVID-19. Operating profit was 5,108 million yen, up 2.7% from the previous fiscal year.

-5- Home Convenience① In the Home Convenience Business, we are working toward enabling customers to achieve greater
convenience and comfort in their lives through daily lifestyle support businesses that draw on the YamatoGroup’s nationwide network. During the fiscal year under review, we promoted efforts to expand theservice territory and to increase sales of our “My Moving” moving-related services for one-personhouseholds.
② Operating revenue amounted to 26,847 million yen, down 3.4% from the previous fiscal year mainly due toa decrease in moving demand as a result of the spread of COVID-19, as well as a decrease in ourhandling of some customer business as a result of carrying out adequate pricing initiatives with respect tothe “Raku Raku Household TA-Q-BIN” service. As for profits, the segment posted an operating loss of
5,699 million yen.

 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 As a service for helping our customer streamline their operations and ensuring greater convenience of
end-users, we offer the “Multi-value Charge Service” which facilitates cashless payments involving emoney and other payment options of a user’s choice, such that are made to individuals from businessenterprises involved in second-hand item purchasing and e-commerce returned merchandise. During the
fiscal year under review, for business operators wishing to introduce this service, we promoted efforts to
expand sales and added features that enable swift and inexpensive service access without the need todevelop such systems in advance.
③ Operating revenue amounted to 28,417 million yen, down 7.1% from the previous fiscal year mainly as aresult of system support for addressing the lower rate of taxation recoiling from the previous fiscal year,
and despite increased use of the “Web-based Shipment Control Service” for assisting with orderacceptance and dispatching operations as a result of having taken action in the burgeoning e-commercedomain. Operating profit amounted to 11,669 million yen, up 9.4% from the previous fiscal year mainly due
to firm results with respect to use of our highly profitable existing services.

 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 and business-tobusiness transaction settlement.
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 worked to expand sales of our“Raku-uru Cart” service, which helps business operators newly enter the e-commerce market by providing
one-stop support in terms of shopping cart function, payment settlement, and delivery services, thereby
addressing challenges encountered by our customers due to changes in the business environment.
③ Operating revenue amounted to 39,671 million yen, down 48.5% from the previous fiscal year mainly due
to scope of consolidation changes associated with a partial transfer of Yamato Lease Co., Ltd., which
engages in the lease service business, and despite an increase in use of our “TA-Q-BIN Collect,”“Kuroneko Web Collect,” and “Kuroneko Pay After Delivery Services,” as a result of having taken action in
the burgeoning e-commerce domain. Operating profit was 6,276 million yen, down 0.7% from the previous
fiscal year.

-6- Autoworks① In the Autoworks Business, we offer vehicle maintenance services that enable servicing without the needto stop business operations, thereby facilitating operational safety and extended vehicle uptime of
medium-sized transportation companies that have multiple locations. Furthermore, we provide services
that help our customers improve their asset utilization ratios, by adding options of “maintaining andsafeguarding logistics facilities and equipment, and improving such workplace environments,” along with“offering insurance plans tailored to customer risk management needs” which provide coverage for such
assets and employees.
② During the fiscal year under review, we have newly established four locations hosting a “Superworks”
maintenance plant for achieving operational efficiency. We also further strengthened our network andcarried out initiatives to increase sales of our maintenance services through close communication withcustomers.
③ Operating revenue amounted to 21,833 million yen, down 12.4% from the previous fiscal year mainly as aresult of a decrease in fuel sales volume. Operating profit was 3,600 million yen, down 16.2% 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-volume delivery. During the fiscal year under review, we continued to work to expand
sales of our services with the future spread of COVID-19 and when the pandemic might subside being
unclear.
② Operating profit excluding dividends which Yamato Holdings Co., Ltd. received from the Group companies
decreased 21% from the previous fiscal year to 1,495 million yen.

-7-

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 carried out the “Zero Traffic Accidents
Campaign” in order to improve safety awareness on a Group-wide basis and promoted other initiatives,
such as presenting awards in respective geographic regions to drivers who have consistently excelled interms of driving safely with no accidents. Due to COVID-19, we refrained from holding our “Safety Classes
for Children,” which we have been continually offering to children in day care facilities, kindergartens andelementary schools across Japan since 1998 with the aim of convey the importance of traffic safety.
② Based on its corporate philosophy, the Yamato Group carries out business activities in accordance withthe law and social norms and actively promotes compliance management. Striving to maximize corporate
value by effectively utilizing the management resources of the Group is one of the top priorities ofmanagement, and we have implemented measures and bolstered management systems as part of ourcorporate governance initiative. Moreover, we engaged in efforts to furthermore strengthen our Group
governance with the aim of enhancing sound Group management. During the fiscal year under review, we
engaged in efforts that included strengthening the merchandise inspection systems of the overall YamatoGroup and upgrading the whistle-blower system.
③ The Yamato Group recognizes that its approximately 220,000 employees are the Group’s greatest asset,
and accordingly acts to create an employee-friendly and rewarding working environment where employees
can take a vibrant approach to work, in order to heighten employee satisfaction and to serve as acompany where a diverse range of talent chooses to work. During the fiscal year under review, we
engaged in efforts that include building appealing personnel systems, adopting a performance evaluation
scheme that encourages independent and autonomous behavior, and re-establishing an educational
system. We also introduced newly designed uniforms focused on “employee-friendly” and “environmentallyfriendly” while using plant-based materials that contribute to reducing carbon dioxide, realizing further
increases in functionality, safety, and comfort.
④ The Yamato Group recognizes that climate change is a crucial issue with respect to making the notion of asustainable society a reality, and accordingly identifies and evaluates risks and opportunities associatedwith climate change. Moreover, we have been taking action to achieve the vision of virtually zero carbon
dioxide emissions (in-house emissions), established as a long-term goal, through efforts that involve
shifting to use of vehicles that produce lower carbon dioxide emissions, developing and introducing nextgeneration mobility including electric vehicles, and handling collection and delivery in a manner that does
not involve use of automobiles. Moreover, we have been engaging in other initiatives that involve reducing
carbon dioxide emissions by heightening the efficiency of our trunk-route transportation to major cities andextending operations served by our “Super-Full Trailer SF25,” which helps reduce long-haul driverworkloads. During the fiscal year under review, we engaged in field testing involving next-generationcollection and delivery mobility using modes of transport that do not emit carbon dioxide during operation,
given our aims of creating diverse employment opportunities and further increasing the efficiency ofcollection and delivery. Moreover, we started to use small mobile refrigeration units, which we have beendeveloping in partnership with manufacturers. These refrigeration units contribute to better fuel efficiency
and lower carbon dioxide emissions when driving, and will facilitate our EV shift with respect to ourdelivery vehicles going forward. Due to COVID-19, we refrained from holding our “Kuroneko Yamato
Environmental Class” sessions, which we have been continually offering nationwide since 2005, with theaim of providing support for environmental education of children who will bear responsibilities of the next
generation.
⑤ 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. In addition, for residents in suburban
areas which are undergoing changes with respect to people’s life stages, we have been providing support
for community development geared to ensuring that local residents are able to lead comfortable lives. Our
efforts have involved helping to revitalize local communities where we have our business locations, and-8-

providing such residents with lifestyle support services that include handling shopping and housekeeping
on their behalf. Also, we have been addressing issues that have emerged for elderly residents, such as
the increase in the number of elderly people living alone and a weakening of community bonds in local
communities, labor shortages and aging of staff at local comprehensive support centers, community
members and others who watch over elderly people, and the spread of COVID-19 which has made itdifficult for those who live far away to easily visit their family members. To such ends, we conducted anationwide expansion of the areas where we provide our monitoring services, which utilize IoT light bulbs
that can be connected to the outside world via the internet and Yamato Transport’s management
resources.
⑥ Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people canexperience the joy of working autonomously. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.
⑦ The Yamato Group has been promoting sustainability initiatives with the aim of striking a balance between
sustainable growth and the development of a sustainable society, based on its transformation plan
“YAMATO NEXT100,” which serves as a grand design for management over the medium to long term. In
addition, we have formulated the Sustainable Medium-Term Environmental Plan 2023 and Medium-Term
Social Plan 2023 and have furthermore set specific actions to be taken on each materiality and targets tobe achieved by March 31, 2024. We accordingly aim to achieve our two visions stated as “Connect.
Deliver the Future via Green Logistics” and “Through Co-Creation and Fair Business Activities, HelpCreate a Society That Leaves No One Behind,” set forth for the creation of a sustainable future. Under thismedium-term plan, the Yamato Group will work toward strengthening sustainable management with theaim of evolving into a company that supports society’s development in a manner that meets current andfuture needs of our customers and communities.

-9-(2) Overview of financial position for the fiscal year ended March 31, 2021
Total assets were 1,089,991 million yen as of March 31, 2021, down 10,748 million yen from the end of theprevious fiscal year. The decrease was largely attributable to decreases in investments in leases and assets forrent of 53,886 million yen and 11,060 million yen, respectively, associated with having excluded Yamato Lease
Co., Ltd. from the scope of consolidation, despite a 44,296 million yen increase in cash and deposits.
Liabilities decreased 32,200 million yen to 505,704 million yen from the end of the previous fiscal year. The
decrease was largely attributable to a 55,500 million yen decrease in borrowings, despite an increase in income
taxes payable of 11,721 million yen due to growth in earnings particularly in the Delivery Business.
Total net assets were 584,287 million yen, up 21,452 million yen from the end of the previous fiscal year. The
major factors included an increase in retained earnings of 56,700 million yen as a result of the amount recorded
for profit attributable to owners of parent, and a decrease in treasury shares of 15,221 million yen due topurchase and cancellation of treasury shares, despite a decrease in retained earnings of 50,915 million yen.
Accordingly, the equity ratio changed to 52.9% from 50.4% of the previous fiscal year.
(3) Overview of cash flows for the fiscal year ended March 31, 2021
Net cash provided by operating activities amounted to 123,921 million yen, which is an increase of 49,487
million yen compared with the previous fiscal year. This is largely attributable to a 47,178 million yen increase
due to the recording of profit before income taxes of 91,759 million yen, and a 21,793 million yen increase intrade payables, despite a 29,444 million yen decrease in trade receivables.
Net cash provided by investing activities amounted to 44,078 million yen, which is an increase of 94,022 million
yen compared with the previous fiscal year. This is largely attributable to a 96,183 million yen increase incollection of loans receivable.
Net cash used in financing activities was 123,247 million yen. Compared with the previous fiscal year, theamount of net cash used increased by 100,878 million yen. This is largely attributable to a decrease inproceeds from borrowings of 64,700 million yen and an increase in purchase of treasury shares of 20,016
million yen.
As a result of the above, cash and cash equivalents were 241,284 million yen as of March 31, 2021, up 44,622
million yen from the end of the previous fiscal year.
(4) Future outlook
Economic activities which had been stagnant due to the global spread of COVID-19 began to reopen. Whereas
business sentiment has been showing signs of improvement, particularly in the manufacturing industry, theoutlook for economic recovery both in Japan and overseas remains unknown particularly with the pandemic
resurging at home and abroad amid uncertainties as to the status of COVID-19 transmission ahead and timing
as to when the pandemic might subside. Meanwhile, COVID-19 has accelerated growth in the e-commercedomain across all industries amid a scenario of changes in lifestyles and the business environment brought
about by developments such as companies promoting telework arrangements and a shift to online services in
the fields of medicine and education.
Under such circumstances, the Yamato Group has drawn up the Group’s medium-term management plan,“One Yamato 2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year. Grounded onprogress and results achieved with respect to initiatives implemented based on our transformation plan
“YAMATO NEXT100, the “One Yamato 2023” plan takes into account the accelerating industry-wide shift to ecommerce prompted by rapidly changing lifestyles and distribution structure. Under the plan, the Group will aim
to provide value to our individual and corporate clients, as well as society as a whole. To such ends, we will
facilitate transformation across the entire supply chain extending from suppliers and manufacturers to
consumers, fully leveraging our business resources concentrated under our concept of serving as a truly “OneYamato.”During the fiscal year ending March 31, 2022, we will continue to address growing e-commerce demand byaccelerating development of our e-commerce delivery networks, improving pick-up convenience, and providing- 10 -

solutions tailored to e-commerce companies and sellers. We will also increase operating revenue by organicallycombining TA-Q-BIN, e-commerce delivery, and middle-mile networks with our network of business locations,streamlining not only distribution but also backyard operations related to stores and e-commerce operations,and focusing on providing value across the entire supply chain through efforts that involve reducing sales
opportunity loss and optimizing inventories.
As for expenditures, we will continue to focus on optimizing costs, which will involve enlisting data analysis withrespect to making optimal allocations of management resources and further streamlining trunk-routetransportation. In so doing, we will take into account critical challenges with respect to achieving greater
productivity while addressing increasing demand particularly in e-commerce given the shrinking labor
population and other such changes in the business environment.
We expect operating revenue will be 1,775.0 billion yen, with operating profit at 95.0 billion yen, ordinary profit
at 95.0 billion yen and profit attributable to owners of parent at 53.0 billion yen.
(5) Operational and financial issues to be addressed
The Yamato Group is operating in a business environment that is undergoing substantial transformation
particularly in terms of diversifying customer needs, declining regional populations, a shrinking labor population,and climate change. Meanwhile, COVID-19 has furthermore accelerated growth in the e-commerce domain
across all industries as companies address changes in consumer behavior and lifestyles caused by the
pandemic. Amid that business environment, the Yamato Group has been seeking to sustainably increase its
corporate value by helping to enrich our society as stated under its Management Philosophy. To that end, on
April 1, 2021, we began shifting to a Group management structure centered on the “New Yamato Transport,”
which combines management resources of our respective Group companies, while furthermore embarking on
our medium-term management plan, “One Yamato 2023,” with the fiscal year ending March 31, 2024 set as its
final fiscal year. We will furthermore accelerate implementation of the following initiatives based on the “OneYamato 2023” plan, which aims to provide comprehensive value by meeting the needs of individuals,
corporations, local customers, and society to transform the supply chain in response to changing lifestyles.
① Increasing productivity across the entire Yamato GroupThe notion of achieving higher productivity poses critical challenges given the shrinking labor populationand other such changes in the business environment. Under “One Yamato 2023,” engaging inmanagement based on data analysis serves as a priority measure. We will optimally allocate the Group’s
management resources in a manner that addresses needs of our changing and increasingly diverse
clients, both individual and corporate, by improving the accuracy of our demand and operating amountforecasts in respective geographic regions. We will furthermore increase productivity across our entire
logistics network. This will involve adequate reallocation to the network of our nationwide holdings ofcommercial warehouses, sorting terminals, TA-Q-BIN Centers, and other business locations. It will also
involve consolidating our trunk-route transportation thus far handled by disparate Group companies,
reducing transportation between facilities, and adequately allocating personnel and vehicles to respective
sites. We will also optimize and standardize our delivery process by transforming work operations, andshifting to automation and digitization, thereby increasing the amount of time frontline personnel interact
with our customers, expanding our collection and delivery capabilities, and enabling us to make
improvements in safety and quality.
Moreover, we will reduce the administrative and indirect operations workload of our frontline personnel bypromoting business process re-engineering (BPR), which will involve standardizing and digitizing suchtasks.
② Increasing operating revenue through growth in the corporate client domain
Our corporate clients are encountering increasingly diverse challenges when it comes to transforming their
supply chains to address changes in consumer behavior and lifestyles caused by the spread of COVID-19.
We regard such changes as an opportunity for business growth, and have accordingly set targets under
our “One Yamato 2023” plan with respect to providing value across the entire supply chain, beyond thebusiness-to-consumer (B2C) domain. Given that this involves seeking solutions to managerial challenges
encountered by our clients across their entire supply chains, we are accordingly focusing on such services
as a new field of growth rather than an extension of our existing fields of business.
In order to achieve these targets, we have consolidated the Group’s previously dispersed sales functions
and management resources into Yamato Transport, and are now resolving customer challenges backed by
an optimal framework that makes it possible for us to interact closely with them. In addition, our Corporate- 11 -

Solutions Control Center, which consolidates sales information, will accordingly spearhead efforts tofacilitate frontline sales initiatives by creating optimal proposals for all of our corporate clients. We willfurthermore seamlessly digitize and visually monitor operations, organically combining each businesslocation with regional networks capable of handling frequent small- and medium-lot collection and delivery,in addition to our TA-Q-BIN and EAZY services. This will make it possible to streamline not only
distribution but also backyard operations related to stores and e-commerce operations, while providing
value across the entire supply chain through efforts that involve reducing sales opportunity loss andoptimizing inventories.
We will strive to create optimal e-commerce ecosystem solutions that enable e-commerce companies toexpand in step with sellers, e-commerce users, and delivery service providers. To such ends, we will
expand EAZY CREW as a partner and will also improve the functions of EAZY, which is based on realtime communications with customers. We will also enhance our solutions for procurement, inventory
movement, and other upstream domains for major and minor e-commerce companies, as well as for
manufacturers and retailers aiming to strengthen their e-commerce domains going forward.
③ Promoting strategies for achieving sustainable enhancement of corporate value
With the aim of sustainably enhancing our corporate value, we engage in initiatives under our “OneYamato 2023” plan that involve promoting data and innovation strategies, reforming management structure
and reinforcing governance, engaging in HR strategy which supports “Innovating Delivery Business,”
improving capital efficiency, and strengthening sustainable management.
Our data strategy involves upgrading core systems, as well as maintaining digital data and enhancing
digital platforms to achieve more sophisticated use of date. Meanwhile, our innovation strategy involves
promoting open innovation, which entails pinpointing and collaborating with startups as well as investing insuch startups with the aim of creating new businesses, particularly using the “KURONEKO Innovation
Fund.”
We will also strengthen governance based on the new Group management structure through ongoing
efforts to strengthen corporate governance. This will entail separating management supervision andexecution, maintaining and enhancing management transparency, as well as establishing governance with
an emphasis on decision-making speed with Yamato Transport serving as the core company mobilizing
our management resources.
When it comes to our HR strategy, which supports “Innovating Delivery Business,” we will establish apersonnel system that makes it possible to clarify and assess the roles and responsibilities of each andevery employee, thereby ensuring that they are able to achieve outstanding performance. Other initiatives
in this regard will involve establishing a training organization with the aims of enhancing our organizational
strengths and training specialist human resources. We will also rapidly promote development of digitally
literate employees by enhancing our digital education programs and increasing digital literacy of all
employees including management. Moreover, we will create work environment that enables ourapproximately 220,000 employees, the Yamato Group’s greatest asset, to work with more peace of mind.
We accordingly aim to maintain a rewarding work environment that causes employees to take a vibrantapproach to work and where human rights and diversity are respected.
When it comes to improving capital efficiency, we will place more emphasis on capital efficiency inmanaging our operations by taking a two-pronged approach with financial strategy in terms of pursing bothbusiness growth and cost structure reform. We will accordingly achieve greater shareholder value throughtimely and appropriate capital policy underpinned by stable dividends mindful of the ratio of dividends onequity (DOE), with due consideration placed on growth (operating revenue), profitability (operating profit
margin), financial soundness (cash generation, balance of cash and deposits, equity ratio levels), progressof investments, capital efficiency and other such factors. When it comes to strengthening sustainable
management, we will take steps to achieve our environmental and social visions as set forth in the“YAMATO NEXT100” plan, which serves as a grand design for management over the medium to longterm. We accordingly aim to help bring about sustainable development of society and business byengaging in business activities in a manner that encompasses our plans for targets to be achieved byMarch 31, 2024, and specific actions to be taken in response to material issues.

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

- 12 -

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

197,226

241,523

Notes and accounts receivable - trade

213,980

212,766

Accounts receivable - installment

46,08845,643

Lease receivables and investments in leases

53,886

－

552

392

Merchandise and finished goods
Work in process

165

117

Raw materials and supplies

3,497

1,770

Other

28,92527,508

Allowance for doubtful accounts(1,439)(1,341)

Total current assets

542,884

528,379

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

362,314367,718

Accumulated depreciation(208,753)(214,421)

Buildings and structures, net

153,561

153,296

73,39773,923(51,562)(54,255)

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

21,835

19,668214,177

199,976(193,345)(185,268)

20,831

14,708Land

175,158

174,140

Leased assets

VehiclesAccumulated depreciation
Vehicles, net

31,26036,645

Accumulated depreciation(8,501)(10,467)

Leased assets, net

22,75926,178Construction in progress

6,417

6,345

Other

81,47756,765

Accumulated depreciation(58,206)(44,791)

Other, net

23,27011,974

423,835

406,312

Software

18,18222,082

Other

2,782

7,472

Total intangible assets

20,96529,555

Total property, plant and equipment
Intangible assets- 13 -

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Investments and other assets
Investment securities

40,31052,231Long-term loans receivable

5,723

6,719

Leasehold deposits

18,67020,121

123

156

Deferred tax assets

45,611

45,625

Other

4,176

2,269

Retirement benefit asset

Allowance for doubtful accounts(1,562)(1,379)Total investments and other assets

113,054

125,744557,855

561,612

1,100,739

1,089,991

Notes and accounts payable - trade147,081

153,860

Short-term borrowings

75,50034,000Current portion of bonds payable

10,000–

Lease obligations

3,578

5,054

Income taxes payable

20,37732,099Deferred installment income

5,028

4,781

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for bonuses

35,86640,173

Other

111,379

119,401

Total current liabilities

408,811

389,369

Non-current liabilities
Long-term borrowings

14,000–

Lease obligations

21,76026,098Deferred tax liabilities

2,064

5,194

Retirement benefit liability

79,23071,834Other

12,037

13,207

Total non-current liabilities

129,093

116,334

537,904

505,704

Total liabilities- 14 -

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Net assets
Shareholders’ equity
Share capital

127,234

127,234

Capital surplus

36,81336,813Retained earnings

441,746

431,571

Treasury shares(54,770)(39,549)

Total shareholders’ equity

551,024

556,070

Valuation difference on available-for-sale securities

8,157

15,883Foreign currency translation adjustment(317)(1,316)

Remeasurements of defined benefit plans(3,692)

5,730

Total accumulated other comprehensive income

4,148

20,297

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets- 15 -

7,662

7,919

562,835

584,287

1,100,739

1,089,991

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Operating revenue

1,630,146

1,695,867

Operating costs

1,526,102

1,538,524

Operating gross profit

104,043

157,342

28,55329,123

Provision for bonuses

1,125

1,256

Retirement benefit expenses

1,160

1,197

Commission expenses

9,348

13,314

Taxes and dues

9,511

10,317

Provision of allowance for doubtful accounts

1,152

715

Depreciation

1,677

3,015

Other

9,099

8,733

Total selling, general and administrative expenses

59,342

65,22044,701

92,121

Interest income

173

222

Dividend income

921

932

Gain on sales of vehicles

191

238

Electric vehicle subsidies

–

656

Other

1,089

1,766

Total non-operating income

2,377

3,816

Interest expenses

422

741

Share of loss of entities accounted for using equity method

4,168

766

Foreign exchange losses

648

–

Other

1,213

409

Total non-operating expenses

6,452

1,917

40,62594,019Gain on sales of non-current assets

7,954

712

Gain on sales of investment securities

1,299

38

Penalty income

–

124

Other

8

100

9,262

975

Loss on retirement of non-current assets

424

409

Impairment loss

990

876

Loss on valuation of investment securities

2,347

372

Loss on liquidation of business

1,206

–

–

363

Selling, general and administrative expenses
Personnel expenses

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Total extraordinary income
Extraordinary losses

Provision of allowance for doubtful accounts
Loss associated with measures to address COVID-19

–

1,163

Other

338

50

Total extraordinary losses

5,306

3,235

- 16 -

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

Fiscal year ended
March 31, 2021

Profit before income taxes

44,58191,759

Income taxes-current

23,02538,251

Income taxes-deferred(1,346)(3,426)

Total income taxes

21,67834,825

Profit22,90256,934578

233

22,32456,700

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 17 -

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2020
ProfitFiscal year ended
March 31, 2021

22,90256,934(4,927)7,926

Foreign currency translation adjustment

198

(994)

Remeasurements of defined benefit plans, net of tax

(613)

9,421

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

(273)

3

Total other comprehensive income(5,616)

16,357

17,28573,292Comprehensive income attributable to owners of parent

17,091

72,849Comprehensive income attributable to non-controllinginterests

194

442

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

Comprehensive income(Breakdown)- 18 -

(3) Consolidated statement of changes in equity
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 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 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- 19 -

114(5,118)

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

Capital surplus

127,234

Retained earnings

36,813

Total shareholders’equityTreasury shares

441,746(54,770)551,024

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

Profit attributable to ownersof parent

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

50,915–

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

15,221

5,046

127,234

36,813

431,571(39,549)

556,070

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

8,157

(317)

(3,692)

4,148

7,662

562,835

Changes during period
Dividends of surplus(15,959)

Profit attributable to ownersof parent

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

Cancellation of treasury
shares–Net changes in items otherthan shareholders’ equity

7,726

(999)

9,422

16,148257

16,405

Total changes during period

7,726

(999)

9,422

16,148257

21,452

Balance at end of period

15,883(1,316)

5,730

20,297

7,919

584,287- 20 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Cash flows from operating activities
Profit before income taxes

44,58191,759Depreciation

55,104

48,897

Impairment loss

990

876

Increase (decrease) in retirement benefit liability

1,863

1,941

Increase (decrease) in provision for bonuses

26

4,375

(1,095)(1,154)

Interest expenses

440

745

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

4,168

766

Loss (gain) on sales of non-current assets(7,953)(663)

Loss on retirement of non-current assets

424

409

Loss (gain) on sales of investment securities(1,299)(38)

Loss (gain) on valuation of investment securities

2,347

372

Decrease (increase) in trade receivables

4,478(24,966)

Interest and dividend income

Decrease (increase) in inventories

(702)

1,516

Increase (decrease) in trade payables(11,767)

10,026

Other, net

12,214

13,900Subtotal

103,823

148,767

1,087

1,285

Interest and dividends received
Interest paid

(443)

(741)

Income taxes paid

(30,034)(25,389)

Net cash provided by (used in) operating activities

74,433

123,921

Payments into time deposits(1,273)(397)

Proceeds from withdrawal of time deposits

1,985

730

Purchase of property, plant and equipment(54,852)(32,074)

Proceeds from sales of property, plant andequipment

13,1602,083

Purchase of investment securities

(584)

(793)

Proceeds from sales of investment securities

1,977

99

Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation

–

(484)

Cash flows from investing activities

Loan advances(3,237)(4,783)

Collection of loans receivable

1,635

97,819Other payments(9,644)(19,228)

Other proceeds

889

1,105

(49,943)

44,078Net cash provided by (used in) investing activities- 21 -

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

Fiscal year ended
March 31, 2021

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

50,000(50,000)

Repayments of lease obligations(4,366)(5,903)

Repayments of long-term borrowings(40,800)(5,500)–(10,000)

Purchase of treasury shares(15,691)(35,707)

Dividends paid

(11,431)(15,950)

(79)

(188)

0

2

(22,368)(123,247)

Effect of exchange rate change on cash and cash
equivalents

(109)

(129)

Net increase (decrease) in cash and cash equivalents

2,012

44,622

Cash and cash equivalents at beginning of period

194,650

196,662

Cash and cash equivalents at end of period

196,662

241,284

Redemption of bonds

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities- 22 -

(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 Autoworks Co., Ltd.
YAMATO BOX CHARTER CO., LTD
KURONEKO Innovation Fund L.P.
YAMATO (CHINA) CO., LTD.
YAMATO INVESTMENT (HONG KONG) LIMITEDYAMATO ASIA PTE. LTD.
Effective from the fiscal year under review, Yamato Lease Co., Ltd. is excluded from the scope of
consolidation upon partial transfer of its shares. Moreover, effective from the fiscal year under review,
KURONEKO Innovation Fund L.P. has been established and is included in the scope of consolidation.
(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: 23
Names of major equity method affiliates:
Packcity Japan Co., Ltd.
GUANGZHOU WISEPOWER TRANSPORTATION& DISTRIBUTION GROUP CO., LTD.
Yamato Lease Co., Ltd.
GDEX BERHAD
Effective from the fiscal year under review, Yamato Lease Co., Ltd. is included in the scope of the equity
method, having been excluded from the scope of consolidation upon partial transfer of its shares.
Effective from the fiscal year under review, VIVL Pte. Ltd. and one other company were included in thescope of the equity method as GDEX BERHAD, an affiliate accounted for using the equity method, newly
acquired their shares.
On December 17, 2020, GD EXPRESS CARRIER BHD. changed its name to GDEX BERHAD.
(2) Non-consolidated subsidiaries and affiliates not accounted for using equity method
Entities not subject to the equity method such as OTL ASIA SDN. BHD. and certain other nonconsolidated subsidiaries and YAMATO UNYU (THAILAND) CO., LTD. and certain other affiliatedcompanies are excluded from the scope of entities accounted for using the equity method because they
do not exert a significant influence on the consolidated financial statements even when taken together asa group, given immateriality of their profit, retained earnings and other financial results corresponding tothe ownership held by the Company.
(3) Special note on the application of equity method
The fiscal year-end dates of certain entities accounted for using the equity method differ from theconsolidated fiscal year-end date, and accordingly the financial statements have been prepared on thebasis of the financial statements and provisional financial results for the respective fiscal years of each of
those entities.

- 23 -

(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.

- 24 -

(3) Information regarding the amounts of operating revenue, profit/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2020
(Millions of yen)
BIZ-Logistics

Home
Convenience

e-Business

Financial

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

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 34,794 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 inter-segment 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.

- 25 -

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

Home
Convenience

e-Business

Financial

1,418,993

146,609

26,84728,41739,671

58,90814,742

10,73350,583100

1,477,902
77,195757,832

161,351
5,108
78,31637,581(5,699)13,67479,001
11,66952,327

39,771
6,276
140,914

38,215

3,432

451

2,500

1,074

430

1,598

–

–

–

35,066

3,945

907

2,783

2,116

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

Operating revenue
Operating revenue from customers
21,833
13,493
1,695,867–
1,695,867
Inter-segment operating revenue or
31,611
61,708228,388(228,388)–
transfers
Total
53,44575,202
1,924,255(228,388)
1,695,867
Segment profit (loss)
3,600
21,136
119,287(27,165)
92,121
Segment assets
30,101
22,403
1,095,571(5,579)1,089,991
OthersDepreciation
756
935
47,366
1,494
48,861
Investment in entities accounted for
–
–
2,028
9,162
11,190using equity method
Increases of property, plant and
2,501
599
47,9207,511
55,431equipment 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 29,568 million yen.
3. Adjustments made are as follows.
(1) The adjustment of negative 27,165 million yen of segment profit resulted from eliminating transactions among segments, etc.
(2) The adjustment of negative 5,579 million yen of segment assets includes eliminations of inter-segment receivables andpayables, etc. of negative 190,713 million yen and group-wide assets of 185,133 million yen not allocated to each reportablesegment.
(3) The adjustment of 9,162 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 7,511 million yen of increases of property, plant and equipment and intangible assets includes theCompany’s capital investment of 7,476 million yen.
4. We made an adjustment between segment profit and operating profit in the consolidated statement of income.

- 26 -

2.

Information regarding impairment losses of non-current assets by reportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Delivery
Impairment loss

Home
Convenience

BIZ-Logistics
266

Autoworks

677
Other

Impairment loss

e-Business46––
Corporate or
eliminations

Total

–

Financial

990–
Consolidated–

990

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

BIZ-Logistics
331

Autoworks
Impairment loss

Home
Convenience

498
Other

46

e-Business–- 27 -–
Corporate or
eliminations

Total
–

Financial

876–
Consolidated–

876

(Per share information)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net assets per share (Yen)
1,441.20
1,553.45
Basic earnings per share (Yen)
56.78
151.55
Notes: 1. The number of common shares as of March 31, 2021 used to calculate net assets per share as well as the average number ofcommon shares during the period used to calculate basic earnings per share are calculated by subtracting shares held in own
name and by furthermore subtracting the Company’s shares held by the Board Benefit Trust (BBT; 483,000 shares as of March
31, 2021, and an average of 322,000 shares during the period).
2. Diluted earnings per share is not presented since no potential shares exist.
3. The basis for calculating “basic earnings per share” is as follows.
Fiscal year ended
Fiscal year ended
March 31, 2020
March 31, 2021
Profit attributable to owners of parent (Millions of yen)Amount not belonging to ordinary shareholders (Millions of yen)

22,32456,700––

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

22,32456,700

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

393,170

374,149(Important subsequent matters)
Not applicable.

- 28 -

4. Others
Operating revenue by business
Fiscal year ended
March 31, 2020
AmountRatio(Millions of yen)(%)
1,217,572
74.7

Fiscal year ended
March 31, 2021
AmountRatio(Millions of yen)(%)
1,327,810
78.3

Kuroneko DM-Bin

64,104

3.9

55,194

3.3(13.9)

Express

41,608

2.6

42,117

2.5

1.2

Business segment
TA-Q-BIN

Delivery

OthersEliminations
Total
Logistics
Trading logistics service

BIZ-Logistics

e-Business

113,019

6.7

15.9(119,147)
1,418,993
100,423

(7.0)
83.7
5.9

7.6
8.3
1.0

41,7962.6

51,4863.0

23.2

31,6691.929,471

1.7

(6.9)

(1.8)
8.8
2.4

(34,771)
146,60937,585

(2.1)
8.6
2.2

20.1
1.9
(4.1)

Others(11,404)
27,805
11,5298,138
6,190
53,309

(0.7)
1.7
0.7
0.5
0.4
3.3

(10,737)
26,847
10,837
8,333
4,949
61,195

(0.6)
1.6
0.6
0.5
0.3
3.6

(5.9)
(3.4)
(6.0)
2.4
(20.0)
14.8

Eliminations(48,589)(3.0)(56,899)

(3.4)

17.1

Payment

30,57929,4481.9
1.8

28,41733,228

1.7
2.0

(7.1)
12.8

Lease service

40,306

2.5

–

–

–

Credit & Finance

3,344

0.2

3,043

0.2

(9.0)

Others

6,848

0.4

3,586

0.2

(47.6)

Eliminations(2,875)77,07249,806
8,734

(0.2)
4.7
3.1
0.5

(187)
39,67147,096
8,972

(0.0)
2.3
2.8
0.5

(93.5)(48.5)(5.4)
2.7(33,618)
24,922
13,37371,724

(2.1)
1.5
0.8
4.4

(34,235)
21,833
12,057
66,461

(2.0)
1.3
0.7
3.9

1.8
(12.4)(9.8)(7.3)(69,334)
15,763
1,630,146

(4.3)
1.0
100.0

(65,025)
13,493
1,695,867

(3.8)
0.8
100.0

(6.2)
(14.4)
4.0

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

OthersEliminations
Total
JITBOX Charter service

Other

6.0
(6.8)
80.4
6.1

(28,946)
143,934
39,210

Total
Truck solution
Autoworks

97,496(110,713)
1,310,067
99,414

Eliminations

Total

Financial

9.1

OthersTotal

Home
Convenience

Change(%)

OthersEliminations
Total
Total

- 29 -