Briefing on Sustainability(Environment and Society)December 20, 2023
Yamato Holdings Co., Ltd.

1. Overview and progress of“Sustainable Management”

1．Management Philosophy

Yamato helps enrich our society
by enhancing our social infrastructure,creating more convenient services
for evolving lifestyles and industries, anddeveloping innovative logistics anddistribution systems.
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved2． Achieving Sustainable Corporate Value Enhancement
Realizing sustainable corporate value enhancement through“Helping to enrich our society”

Changes in the business environment

Creating new innovations

 Diversification of customer

 Providing various ways of receiving“expectations” and “needs”

parcels, and creating new services

 Expansion of e-commerce in all Expansion of value provided on an “Endto End” basis to the supply chain

industries
 Decline in total population and from Solving social issues throughcollaboration and innovation

the regional areas of Japan Decline in labor population

 Establishing a labor environment that is Climate change becoming a moreeasier to work in and more motivating

serious issue (global warming)

through digitalization and automation
 Promote sustainable management,
including green logistics
Material
IssuesCopyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

3．Direction of mid-to-long term strategy•

Position “Reinforcement of corporate governance” and “Reinforcement of sustainable
management” as the foundations of management, and promote “Environmental
strategy” and “HR strategy” in conjunction with business structure reforms involving
both sales and operations (structural reforms of network operations 〜 expansion of
the Corporate business domain)

Expand corporate businessdomainManagement
resources
brought
together under“One YAMATO
structure”

Structural reform of
network operations

Client baseHuman
resources
Logistics
network

HR strategy

Digitalstrategy

Environmental
strategy☜ Enhance profitability
and growth potential
through businessstructure reform withsales and operations
working together as one☜ Promotefoundational strategies
that support businessstructure reform

Information
FinancialbaseEnergyresources
Copyright 2022 Yamato Holdings Co., Ltd. All rights Reserved

Reinforce sustainable management☜ Strengthen platformthat supports sustainable

Reinforce corporate governancecorporate valueenhancement

4．Connection between sustainable initiatives and corporate valueenhancement• Promote “Environment strategy” and “HR strategy” in conjunction with businessstructure reforms ~ Sustainable corporate value enhancement
Business strategy

Management targets

Improve cost
control
capability,
linking it tooperatingrevenue・
Improve
operating profit
marginExpand the
CorporatebusinessdomainStructuralreform of
network
operations

Proposal of
TA-Q-BIN＋α
Establish
and expand
designatednetwork
Reinforce
existing
network

Reinforce sustainable management

HR strategy

FY2027/3(Forecast)
Operating profit
margin of 7% orabove
ROE of 13％ orabove

Growth inoperatingrevenue

Supply chain
solutionsSustainable initiative

Environmental
strategy

Sustainable corporate value enhancement

Enhance value
creation towards
the supply chain
on an “End toEnd” basis

Initiative

Results

Major KPIs

Promote green
innovation

Reduce GHG
emissionsGHG
emissions, useof renewableenergyVisualize customers’
GHG emissions
Help build SC* withlow environmental
burdenEnhance value
provision tocustomers

Operatingrevenueof CL* andTA-Q-BIN

Optimal allocation oftalent in conjunction
with businessstructure reforms

Enhancehuman
productivity*

Hiring and trainingof talent capable ofcreating value-add
Create suitable work
environment andorganizational culture

Betterengagement

Optimalpersonnel
allocation
Human
Resource
fulfillment ratio
Femalemanager ratio,
working hours,
etc.

Sustainable
To be set for
Promote Sustainable
development of
Mid-term Plan initiatives Yamato and society each major
initiative

Reinforce corporate governance

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved*SC: supply chain, CL: contract logistics, Human productivity=(Operating revenue - subcontracting expenses)÷personnel expenses

5．Sustainable Medium-Term Plans 2023 (FY 2022/3 to FY 2024/3)•

Focus on building the foundation for sustainable management, and set targets forselected material issues, with the aim of enhancing corporate value over the mid-tolong term and realizing a sustainable society
Environmental Vision
Connect. Deliver the future via green logistics

Social Vision
Through co-creation and fair business activities, help
create a society that “leaves no one behind”

Medium-Term Environmental Plan 2023
Energy &Climate・Reduce GHG emissions 10% compared with the fiscal year ended
March 31, 2021*1
・Reduce GHG emission intensity 10% compared with the fiscal year
ended March 31, 2021*1*2・Achieve 40% usage rate of electricity generated via renewable energy
sources*3

Atmosphere

・Reduce NOx and PM emissions from vehicles 25% compared with thefiscal year ended March 31, 2021*4
・Introduce vehicles that emit fewer air pollutants

Resource
Conservation& Waste・Use 55% renewable resources and recycled materials for papermaterials*5・Reduce landfill disposal rate (final disposal rate) to 5% or less*6
・Provide products utilizing recycled materials and resource saving
materials

Resilience ofCompanies &Society・Advance green logistics in collaboration with our business partners
・Collaborate with society to improve environmental resilience(verify and share information about mitigating climate change)
・Provide environmentally friendly products and services*7*1 In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2) *2 tCO 2e/operating
revenues of ¥100 million *3 For consolidated companies in Japan and Swan Co., Ltd. *4 For Yamato Transport *5 Paper
materials refer to cardboard for shipping, pickup and delivery materials, etc. *6 Equivalent to reduction by half
compared with the past *7 Products and services with environmental value and a low burden on the environment*8 Number of work-related fatalities and injuries per million working hours

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Medium-Term Social Plan 2023
Labor

Human Rights& Diversity

Safety &Security

Data
Utilization &Security

・Improve operating revenue per employee (compared with the growth rate
for the fiscal year ended March 31, 2021)
・Reduce overtime for employees 20% compared with the fiscal year ended
March 31, 2021
・Achieve 90% annual paid leave utilization
・Achieve 100% attendance at human rights training for all employees
・Ensure percentage rate of employees with disabilities is 2.5%
・Double the number of women in management (executives) compared withthe fiscal year ended March 31, 2021, and ensure 10% of all managers are
women
・Achieve zero serious traffic accidents (fatal traffic accidents for which theCompany is responsible)*3
・Reduce number of traffic accidents (where bodily injury occurs) 50%
compared with the fiscal year ended March 31, 2020*3
・Achieve zero serious occupational diseases (work-related deaths)*3
・Reduce frequency of lost workday injuries*8 by 20% compared with thefiscal year ended March 31, 2020*3
・Develop an infrastructure for creating businesses that utilize data toresolve social issues
・Achieve zero serious information security incidents
・Ensure 100% deployment of information security managers at majororganizations and 100% implementation of training for information
managers*4

Supply Chain
Management

・Complete development and demonstration of monitoring framework*4

Community・Complete development of a framework to measure effectiveness ofcorporate citizenship activities and business in resolving social issues

6．Progress of Sustainable Medium-Term Plans 2023•

Steadily promoting initiatives to achieve the targets of Sustainable Medium-Term
Plans 2023
Targets for FY 2024/3(Excerpt)▶Mitigate climate change

Progress
in FY 2023/3

Reduce GHG emissions 10%

7% decrease

Achieve 40%* usage rate ofelectricity generated via
renewable energy sources

22% usage rate(compared with FY 2021/3)

Examples of Initiatives
in FY 2023/3
・Introduction of EVs, solar power generationequipment and LEDs
・Switch to a menu of electricity generated via
renewable energy sources
・Reducing the use of dry ice*We added 10% to our original target of 30% to achieve our overall targets for reducing GHG emission▶Create a work environment where employees can thrive
・Implementation of workplace discussions for all
Reduce overtime forbusiness managers at Yamato Transport (fostering
7% decrease
employees 20%
organizational culture)(compared with FY 2021/3)
Achieve 90% annual paid leave
・Formulating definitions of duties for occupations
98.1％
utilization
and roles▶Create a corporate culture that respects human rights and diversity
・Formulation of Yamato Group Human Resources
Double the number of women in
Management Policy
management (compared with FY 2021/3) ,1.1 times /5.7%
・Implementation of training programs for female
ensure 10% of managers are women
employees
・Developing multi-lingual tools, such as training
Ensure percentage rate ofmanuals
employees with disabilities is
2.9％
・Promoting the Yamato Original Universal Manners
2.5%
Test for Yamato Group employees▶Develop a common understanding with stakeholders
Complete development anddemonstration ofmonitoring framework
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Implementationand completion ofmonitoring tests
and verification for
key suppliers•Implementation of monitoring tests for key suppliers
at 28 companies•Decision on how to advance monitoring in FY 2024/3

【Energy & Climate】

7．GHG Emissions and Electricity Generated via Renewable Energy Sources•

Promote the introduction of EVs, solar power generation equipment, LED lighting etc.
in conjunction with the strategy for Yamato’s facilities, which forms part of thestructural reforms of network operations, while steadily reducing GHG emissions bypromoting the use of renewable energy-derived electricity■GHG Emissions/Percentage of Electricity Generated
via Renewable Energy Sources(Thousand tCO2e)

1,000 Baseline

(%)

(2)％

(7)%

750
500

0

(10)％
40％

70％

0%
2021/360

02023/32024/3
Target2031/3
Target23%
Dry ice,fluorocarbon,

(48)％

11%

2022/3

Electricity, heat,

80

22%

250

■CO2 by source of emission (Scope1&Scope2)

2051/340

etc. , 12%

20

Fuel (facilities),

0

, 64%

■CO2 emission by Scope
Scope121%

Percentage of Electricity Generated via Renewable Energy Sources(right)Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved(vehicles)

1%

TargetProgress of introduction as of March, 2023
 868 EVs 11 solar power generation equipment
 1,241 facilities with LED lighting

Fuel

From in-house fuel,dry ice etc.

Scope2
7%
Scope3
72%
From purchased products and services (transportation partners,
pickup and delivery commission, tires, equipment, etc.

From electricity, heatetc.

【Energy & Climate】

8．Plan for Reducing GHG Emissions by key measures• Set plan for reducing GHG emissions, with the aim of achieving the mid-termtarget of “48% reduction in GHG emissions (vs FY 2021/3)” by 2030, andpromote initiatives towards the target
Plan for Reducing GHG Emissions to Achieve Medium-Term Targets (2030)
Key Measures
Introduction of 20,000 EVs
Introduction of 810 units of solar power
generation equipment

Introduction of LEDs
70% utilization rate for electricity generated
via renewable energy sources
Elimination of dry ice
Increase in transportation efficiency

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved▶ Plan for Reducing GHG emissions

【Energy & Climate】

9．Utilizing green bonds• Utilize green bonds (corporate bonds) as a source of funding, to actively
promote investments for GHG emissions reduction and energy conservation
Establish “Yamato Holdings Green Finance
Framework”*

Second party opinion from external reviewer

Issue green bonds (corporate bonds)
Use proceeds from green bonds to introduce
EVs and solar power generation equipment
etc. in each facility*Established based on the 4 pillars (1. use of proceeds, 2. project assessment
and selection process, 3. management of proceeds, 4. reporting) outlined by
the Green Bond Principles 2021 set by ICMA (The International CapitalMarket Association), and the Green Bond Guideline (2022 version) by the
Ministry of the Environment, etc. Please see website for details.
https://www.yamatohd.co.jp/news/attachment/newsrelease_20230605_1_1.pdf(Japanese only)
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Name

Yamato Holdings Co., Ltd. The 1st unsecured bonds(with an inter-bond pari passu clause) (Green Bond)

Amount of issue

20 billion yen

Term to Maturity

5 years

Interest

0.31%

Date of Pricing

June 30, 2023

Date of Issue

July 6, 2023

Date of Maturity

July 6, 2028

Use of proceeds

・Introduction of EVs and charging facilities, researchand development
・Installation, operation, and renovation of solar
power generation facilities
・Installing LEDs and other equipment to improveenergy efficiency at facilities and sales offices

RatingAA-(Rating and Investment Information, Inc.)

Lead Managers

Nomura Securities Co., Ltd., SMBC Nikko Securities
Inc., Mizuho Securities Co., Ltd., Daiwa Securities Co.,
Ltd., Mitsubishi UFJ Morgan Stanley Securities Co.,
Ltd.

Structuring Agent*

Nomura Securities Co., Ltd.

Fiscal Agent

Mizuho Securities Co., Ltd.

*A party that supports financing using green bonds and green loans through thedevelopment of a green finance framework and the acquisition of second-party
opinions.

【Supply Chain Management】

10．Establishing appropriate relations with partners• Establish partnerships through regular communication with partners, to promote fair,just and sincere business and to ensure responsible procurement for environment andsociety→ Collaborate to achieve sustainable growth and realize a sustainable society
Basic policy

Major initiatives<With key partners>

 Based on the Yamato Group Responsible
Procurement Policy and the Yamato Group
Business Partner Guidelines, build partnerships
through regular communication•

Presentations to suppliers (June 2023)•

Implemented monitoring tests and decided how to advancemonitoring<With services partners>•

Key partners / suppliers

Establish structure to engage in business appropriately withtransportation and delivery partners•

Ongoing employee training, regular discussions and support
with partners for appropriate transactions<Procurement partners>• Suppliers of invoices, materials, dry ice, etc.
<Services partners>• Transportation and delivery partners

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved＜Partnership Promotion Office*>

In light of issues such as the decline in working population, rise infuel prices, and the workstyle reform of drivers, set up the Officeto establish structure and operations to engage in businessappropriately, mainly with transportation, pickup and delivery
partners* Established in Yamato Transport on Jan. 2023

11．Future initiatives• Pursue sustainability transformation in the environment and society→ To realize sustainable management, Yamato will focus on solving
environmental issues, while seeking to sustainably enhance corporate value, by
providing social value to a diverse range of stakeholders
Sustainability Transformation(SX)
EnvironRealize sustainable management
ment
Realize resilient logistics that can withstand changes inthe environment, and serve as a social infrastructure.
Through business operations and solution providing thatsolve environmental issues, enhance the sustainability ofthe earth and companies
By 2026

Reduce GHG
emissions

Provide resource Accelerate green
recycling& resilient
solutionslogistics

Value creation for multiple
stakeholders

Soc
iety

Pursue management that enhances the wellbeing ofcompanies and the supply chain, thereby creating longterm value for society and companies
By 2026

Enhanceemployeeengagement*

Realize diversity& inclusion

Establish asustainablesupply chain*Trust and the will
to contribute to
the company

Solve environmental issues ×
Sustainable growth of companies

Governance

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Social value creation ×
Corporate value creation

Reinforce corporate governance2. Environmental Strategy

12．Responding to the risks and opportunities posed by climate change• Reduce own GHG emissions and increase the value we provide to customers
to reduce climate change-related risks and expand opportunities over the
mid-to-long term
Risk/Opportunity (excerpt)

Assumed Financial
time
impactCarbon tax
・Increase in costs due to the carbon tax:
Risk
13.3 bn yen in 2030, 25.6 bn yen in 2050*1
・Increase in revenues through sale of low-carbon
logistics Opportunity

Mediumterm

Increase in environmental awareness of consumers
・Decrease/increase in revenues from meeting environmental
Risk
Opportunityneeds
・Improvement in efficiency by reducing redelivery

Mediumterm(up to2030)(up to2030)

High

Main Initiatives
・Reducing GHG emission through theintroduction of EVs, PVs etc.
Expected reduction of the cost impact of carbon
tax: (6.1) bn yen in 2030, (25.6) bn yen in 2050*1
・Examination of introducing internal carbon
pricing

High・Providing supply chain solutions thatmeets customers' environmental needs

Medi
um

・ Opening of offices utilizing hazard maps andperiodic reviews of business continuity planning
manual・Enhance resilience by using renewable energy
and EVs with cartridge batteries

Opportunity

Increased severity and frequency of abnormal weather
・Loss of business opportunities, increased repair costs, etc.:
Risk
1.9 bn yen in 2030, 3.8 bn yen in 2050*2
・Reduce impact through early response to disaster risks
Opportunity

Short
term

(up to2023)*1: Estimated carbon tax prices of $130 per ton in 2030 and $250 per ton in 2050
*2: Calculated by referencing past disasters
For details on the initiatives based on the recommendations of the TCFD, please refer to our corporate website.
(https://www.yamato-hd.co.jp/english/csr/environment/tcfd.html)
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

13．Initiatives to reduce own GHG emission (Overview)＜Long-term Target＞

Virtually zero GHG emissions* in 2050
＜Mid-term Target＞

48% reduction in GHG emissions* in 2030
(vs FY 2021/3)＜Focus initiatives＞
Introduction ofEVs

Utilize renewableenergyReduce use of
dry ice

Make it possible to“see” electricity use

Study newtechnologies, andimprove operational
efficiency＜Basic initiatives＞
Energy saving(Renew equipment / facilities,
switch to LED, etc.)* In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2)
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

14．Future vision for the energy ecosystem• Take an integrated approach in promoting cartridge-type EVs,
introducing solar power generation equipment, and energy management,
to reduce GHG emissions and make efficient use of renewable energy
Energy ecosystem
Energymanagement

Collect
and reusebatteries
Our facilities

Standardize
charging

Partner companies

Onsite & offsite PV＋storage batteries

Solar power
generation

Increase supply of electricity.
Charge and store electricity
more effectively•

Discussion •/Alliance

Local community

Introduce more EVs

Batterytransportation

Make it possible to operate Turn batteries into infrastructure, andtrucks while charging, using
share value from decarbonization
cartridge-type batteries
with local community

Makers：Consider specifications for batteries that are easy to use as well as to procure
National and local governments：Signed alliance agreement with Gunma Prefecture toachieve carbon neutrality⇒ Promote proof-of-concept trials in Gunma as a project supported by NEDO*

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved* New Energy and Industrial Technology Development Organization

15．Cost impact from promoting initiatives• Establish energy ecosystem, and thereby achieve both GHG emission
reduction as well as cost control through efficient use of energy
Cost impact in FY March 2031(estimate)
No 施策未実施
initiatives
Reduction of
approx. 15%
With initiatives
施策実施

Environmental
initiatives：
・Introduce 20,000 EVs
・Introduce 810 units ofsolar power generationequipment etc.

■ Equipment and repair costs related to vehicles ■Fuel and utility costs, non-vehicle equipment costs, etc.

If carbon tax is fully introduced, (6.1) billion yen of additional cost effect is expected,
on top of the above (based on TCFD scenario analysis and business impact assessment)【Assumptions for calculation】• Assuming a +1%/year growth rate in parcel delivery volume, the same number of facilities, vehicles, mileage, etc. are used forboth cases.
• Estimated vehicle repair cost, fuel cost, utilities and, depreciation, lease and operational costs for vehicles and solar power
generation equipment, respectively. Assumed annual rise in fuel and utilities cost.
• Assumed all electricity from solar power generation to be used inhouse, through the utilization of batteries etc.
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

16．Progress of initiatives (EV)• Promote introduction of various types of EVs in cooperation with automakers
and achieve both GHG emissions reduction and maintaining/enhancing pickup
and delivery efficiency
Vehicle type

Hino Motors “Hino Dutro Z EV”

Mitsubishi Fuso “eCanter” (new model)

Honda “MEV-VAN Concept” (for trial use)
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Key features

Introduction Status

 Super low floor and walkthrough type small
BEV Easy to move from driver’s seat to cargo area,
and get on/off vehicle
 Can be driven with ordinary license

Introduced
approx. 650 vehicles(as of Nov. 2023)

 2-ton truck type EV
 Compact and easy to maneuver, despite its
loading capacity
 Supports three temperature zones (roomtemperature, chilled and frozen)
 Cartridge type model is under development by
the manufacturer

Introduced
approx. 300 vehicles(as of Nov. 2023)

 Light commercial EV that uses replaceable
batteries
 Will verify operations to reduce GHG emissionsof Yamato and partner companies

Start trials from
Nov. 2023

17．Progress of initiatives (FCV)• For trunk-route transportation, where sufficient cruising range and payload
capacity are required, verify the practical application of large fuel cell
(hydrogen) trucks (FCVs)
Key features

Introduction Status

 Large fuel cell truck which uses hydrogenas fuel Jointly developed by Toyota and Hino
Motors Cruising range: approx. 600 km
 Since heavy-duty trucks are required tohave sufficient cruising range, payload
capacity, and the ability to refuel in ashort time, the effectiveness of the fuelcell system using hydrogen, which has ahigh energy density, will be verified

Trunk-routetransportation
Started trials fromMay 17, 2023
between Haneda
Chronogate
sorting centre andGunma sorting
centreVehicle type

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

18．Progress of initiatives(Solar power generation & energy management)• Began full-fledged operation of model facility for energy management, withall trucks being EVs as well as using solar power generation systems(from Oct. 2023)■Overview of Kyoto Yawata Sales Office First facility where all vehicles operated are EVs
 Installed solar power generation equipment and storage
batteries. Uses electricity generated during the day to recharge
EVs and the electricity used in the building* Conducts energy management, such as by using a power
leveling system to reduce power usage volatility by recharging
all EVs at night
EV introduction

100％(32 vehicles)

Usage ofCO2-freeenergy100％*

LED introduction

100％* Purchases “CO2-free electricity” from The Kansai Electric Power Company to address electricity
demand that cannot be covered by solar power generation
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

19．Expanding value provision to customers (Market analysis)• Addressing climate change has become an important issue for companies,
leading to higher environment-related needs• Promote green innovation to create customer value and increase revenue■Areas of competition in the logistics industry
Past

Quality
Lead-time
Cost

Accounts

Present

Area customers

Quality
Lead-time

75.0%

Cost

56.5%

Environment•

Higher importance of “resilience” as an
issue in supply chain management•

Based on requests from stakeholders,environmental value (GHG emissions anddisclosure) has become one of thecriteria for assessing logistics companies
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved■Results of customer needs survey•

75.0% of accounts (large corporateclients) responded* that they “Will
actively use delivery services with low
environmental impact”* Excerpt from Yamato survey (NPS) in FY 2022
Area customers： n=44,213 companies
Accounts： n=453 companies

20．Expanding value provision to customers(Competitive advantage and value provision to customers)• Visualize customers’ GHG emissions, and establish a supply chain with low
environmental impact, thereby expanding value provision in the corporate
domainCustomerneeds

Yamato’s strengths

Visualizing
GHG
emissions••

Provide more reliable GHG emission
data, generated from TA-Q-BIN usage*1: International standard (issued in March 2023) to calculate GHG emissions in thelogistics industry: Calculated by accumulating operations by process, making the results
more accurate, and the company's reduction efforts can be easily visualized•

Reducing
GHG
emissions

Visualization system based oninternational standard ISO
14083:2023*1

Value provided (differentiating factors)•

Promote green logistics toachieve virtually zero*2 GHG
emissions by 2050
Support the optimization ofcustomers’ logistics in Japanand overseas, as well as the
optimization of inventory andproduction planning•

Reduce customers’ GHG emissions
from TA-Q-BIN usage (Scope3)•

Optimize the entire supply chain ofcustomers, and lower theenvironmental impact (Scope1・2)

Reduce environmental impact from customers’ business activities
and enhance corporate value

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved*2: In-house emissions of consolidated companies in Japan and Swan C o., Ltd. (Scope 1 & Scope 2)

21．Reducing GHG emissions in the entire supply chain• Seek to expand the Corporate business domain, by supporting the building of
supply chains with low environmental impact
Examples of initiatives with customers
Kubarahonke (Food manufacturer)・Integrate and optimize supply chain by sales channel and product・Establish optimal supply chain from production to nationwide
Yoshinoya (Restaurant chain)・Integrate and optimize supply chain for direct sales and wholesale
・Make distribution scheme more efficient using 3 temperature zone
logistics facility integrated with terminal
Nihon Michelin Tire (Tire manufacturer)・Integrate warehouses
・Visualize and optimize inventory in each facility
・Minimize disposal due to expiration by managing the year of
manufacturing
Adastria (Clothing Seller and Manufacturer)・Review the supply chain in Japan and overseas, from the sourcing ofmaterials, production, and omnichannel sales
Colowide Group /(Restaurant chain)・Visualize and optimize supply chain, which had been divided by business・Accommodate high frequency small lot delivery in meal service business
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Resulting effects•

Utilizemultiple networks and商品ごとで個別
facilities nationwide•

Visualize and integratemanagement of inventory•

Visualize GHG emissions from
TA-Q-BIN (to be provided)

Optimization of logistics
Optimization of
inventory
Reduce waste
Reduce GHG emissions

3. Human Resource Strategy

22．Human Resources Management Policy• Clarify ideal state of the organization and Human Resources management as
Yamato promotes Business Structural Reforms
Image of Yamato Group Human Resources Management Policy

Management philosophy：Help enrich our society
Provide environment and opportunity tobring out the best of each employee

Growth ofcompany

Achieve sustainablegrowth on both ends

Growth ofemployee

Act autonomously and independently, withthe first priority placed on customers

Basic initiatives of HR strategy, to realize Human Resources Management Policy
 Clarify “job description” that is linked to management strategy, and set plan to hire, train and allocate
talent based on “job description”
 Penetrate cycle of target setting, evaluation and feedback based on “job description”
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

23．Overview of HR strategy• Bring out the most in terms of activities and contribution from each employee,
and generate higher value-add
HR strategy

Key initiatives

KPI

Optimal talent
allocation throughbusiness structurereforms

Optimize headcountand organization, andstreamline HR system

Optimalheadcountallocation

Hire and train
human resourcethat generates
value-add

Establish and manage
Human Resources
Management Policy

Human
Resource
fulfillment ratio

Develop workplaceenvironment andorganizational
culturePromote diversity,
develop workplaceenvironment free fromhuman rights violations
and harassment, andpromote healthmanagement

Female manager
ratio, working
hours, etc.

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

ResultImprove human
productivity

Better engagement24．Optimal talent allocation through business structure reforms• Establish system to evaluate and compensate employees appropriately, basedon clearly defined job descriptions, and visualize positions in order to
optimally allocate human resource
Structural reform of network operation〈For the happiness of customers, employees
and business partners〉
 Transportation• Build multi-layered networks, reduce
long-distance truck transportation, etc.
 Last-mile• Consolidate and enlarge facilities, create
good workplaces, etc.
 Fully digital operations• Digitalize and automate operations,capacity management, etc.

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Optimization of headcount and organization,and streamlining of HR systems
 Initiatives to the front lines of operations• Renew system to evaluate andcompensate appropriately, based on job
description, following the renewal ofworkstyle and structure at the front lines→ Set up dedicated team to promote
project
 Initiatives to headquarters• Flatten the organization to encourage theactive participation of managers andfurther drive performance25．Hiring and training of human resource that generates value-add• Establish and operate human resource management system that promotes
the autonomous and independent career development of employees, hire andtrain human resource that can generate value-add
Realize sustainable business growth Reinforce Corporate businessdomain Strengthen operation and network
 Promote digital strategies, etc.

Establish and operate
HR management system Secure and develop human resourcethat can provide new value(corporate sales, operations, digitalization, etc.)

 Training of employees with newroles, following structural reforms
etc.
 Structured training of key personnel
based on career path

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

26．Hire and train human resource capable of generating value-add(Development of key personnel)• Develop key personnel to drive business growth, by revising the evaluation
system to match the “job description”, operating the talent development
process by job level and providing opportunities for autonomous growth
Revise system to evaluate level of
implementation of the “job description”
 Shifting to an evaluation system based on job
descriptions, starting with senior managers
 Develop and embed a culture in the organization inwhich employees themselves pursue careerdevelopment and their own growth, based on theevaluations
Operation of HR development process for each job
level/ providing growth opportunities
 Reorganize initiatives for each job level to integrate
operation of HR development process Continuously develop key personnel that supports
the future management of the company, throughmedium-term training programs for new graduates Strategically allocate human resource based on each
assessment information
 Trial introduction of in-house job posting system anda self evaluation system for middle and junior level
employees
Copyright
2023 Yamato Holdings Co., Ltd. All rights Reserved

Based on the succession plan, create a talent pool withthe position of President at the top, and systematicallydevelop candidates for senior management■Image of talent pool

27．Hire and train human resource capable of generating value-add(Hiring and training of digital talent)• Establish structure to promote “Business and Digital” in an integrated manner,
through reorganization of the Group• Promote hiring and training to strengthen development and operation
Securing
talent to technologicalenhance in-housecapabilities
Strengthening
capabilities

Retention of talent Hiring to secure digital talent effectively, in lightof rising demand for such talent• Hiring new graduates who want to improvetheir skills• Mid-career hiring of employees who want tocontribute to the business using their skills

 Reform the digital human resource system in order togain market competitiveness• Abolish seniority-based elements, and implement
evaluation, promotion and pay rises based on
professional skills and business contribution• Propose working conditions that accommodate
more flexible workstyles

Strengthening technological capabilities
 Introduce skill maps for each employee, quantify
skills and acquire the necessary skills efficiently

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved* Have begun to apply to employees originally hired at
Yamato System Development, from October 2023

■KPI for digital talent
FY 2027/3

KPI

FY 2023/3

Digital-focused talent*1

560

900

Digital training attendance*2

350

1,000

(Estimated)*1: If hiring does not progress as expected, promote alliances with external
partners*2: Training to enhance skills of digital-focused talent and to improve digital
literacy and skills of employees including staff on the business side

28．Establishing work environment and creating organizational culture• Prioritize initiatives to promote the role of managers, in order to establish awork environment and organizational culture that provides a better work
environment and heightens motivation
Employee awareness survey results▶ Employee awareness survey results

 Priority for improvement is enhancing motivation
 The awareness, motivation, skills etc. of managers
has a strong impact on the mindset of employees

Initiatives to promote the role of Managers
 Workplace Discussions• Through dialogue, promote the mindset that it is importantto understand management policy and strategy,
communicate it to their team members, reflect it in actions,penetrate the Human Resource Management Policy,
evaluate and feedback members based on the “Jobdescription”▶Workplace discussions (Yamato Transport, FY2023/3)

 Continuous follow-up with managers (FY2024/3〜)• Regularly conduct Workplace Discussions• Streamline job, role and responsibility of managers• Reorganize and provide skills education and training
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

No. of meetings

Participants*

87

2,411

*Managers in Sales office etc. participated. (Executive Officers joined as observers)

29．Trend in labor productivity••

With the structural reform of network and (EC logistics network, consolidating andenlarging last-mile facilities), human productivity has improved
Through the establishment and operation of HR systems and management structure,accelerate higher productivity in operations and value creation, and aim for higher
human productivity and the improvement in operating margin
250,000

Number of employees/ human productivity

1.40
1.35

200,000

1.30
1.25

150,000

1.20
100,000

1.15
1.10

50,000

1.05

0

1.00

2013/32014/32015/32016/32017/32018/32019/32020/32021/32022/32023/32024/3
Number of employees
Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Human productivity

Ref. Sustainability Promotion Structure and governance■ Sustainability Promotion Structure

・Environment Committee：Held once a year
・Environment Subcommittee*：Held 3 times a year

* ①Energy・climate・atmosphere ②Resource・waste ③Management・ collaboration④Products・services

・Social Promotion Committee：Held once a year
・Social Subcommittee*： Held 3 times a year

■ Compensation of Directors* ①Human rights・diversity ②Supply chain management ③Local communities

Mid-to-long term performance-linked, share-based compensation(variable compensation)
introduced in FY2022/3
Performanceindicators

ROE, total shareholder return,
ESG indicators (greenhouse gas emissions)

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Ref. External certifications and assessments
Metric, name, etc.

Organization(As of Dec 1, 2023)

Yamato HD’scertification

MSCI

MSCI ESG Leaders Indexes
MSCI Japan ESG Select Leaders Index
MSCI Japan Empowering Women (WIN)
Select Index

Included in the index
AA(Max AAA)FTSE

FTSE 4 Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative
Index

Included in the index
4.3 (Max 5)

S&P

S&P/JPX Carbon Efficient Index

Included in the index

SOMPO AssetManagement

SOMPO Sustainability Index

Included in the index

Climate change
B (A~D)

CDP
Morningstar

Morningstar Japan ex-REIT Gender
Diversity Tilt Index

Copyright 2023 Yamato Holdings Co., Ltd. All rights Reserved

Included in the index

Disclaimer
This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial
instruments. Ultimately it is the responsibility of investors to select and buy securities and the Company assumes no responsibility
for investors who act on the basis of this material.