FINANCIAL SECTIONFINANCIAL SECTION

Ten-Year Summary and Business Highlights
2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/3

Millions of Yen
2021/3Thousands of
U.S. Dollars

Analysis of Operating Revenues

2021/3(¥ billion)

RESULTS OF OPERATIONS:

1,630.1

2020/3¥1,260,833 ¥1,282,374 ¥1,374,610 ¥1,396,708¥1,416,413 ¥1,466,852 ¥1,538,813¥1,625,315 ¥1,630,147 ¥1,695,867$15,318,103

1,014,564

1,028,219

1,099,400

1,101,439

1,111,867

1,151,028

1,201,770

1,297,223

1,310,068

1,418,993

12,817,211

246,269

254,155

275,210295,269

304,546

315,824

337,043

328,092

320,079

276,874

2,500,892

BIZ-Logistics+2.6

1,163,777

1,181,834

1,274,471

1,290,715

1,306,200

1,385,492

1,452,485

1,513,988

1,526,103

1,538,524

13,896,890

Home Convenience(0.9)

30,40534,33737,04337,046

41,673

46,47550,642

52,981

59,34365,221

589,115

e-Business(2.1)

Operating profit

66,651

66,20363,096

68,947

68,54034,88535,68658,34644,701

92,122

832,098

Profit before income taxes

45,81764,28465,882

69,15868,07933,03833,12352,25844,581

91,760828,830

Income taxes

26,05929,56331,00331,55528,415

14,673

14,43526,30821,67934,825314,563

Profit attributable to owners of parent

19,78735,144

34,77637,53339,42518,054

18,232

25,682

22,32456,701

512,154

Operating revenues
DeliveryNon-delivery
Operating costs
Selling, general and administrative
expensesYen

PER SHARE OF COMMON STOCK:
Basic earnings
Diluted earnings
Cash dividends
Net assets per share
Stock price (closing), end of year¥    46.00 ¥    81.85 ¥    82.22 ¥    90.41
44.87
79.84
80.18
88.26
22.00
23.00
24.00
25.00
1,197.26
1,261.35
1,316.12
1,368.66
1,279
1,740
2,224
2,772

¥    96.45 ¥    45.37 ¥    46.24
95.64
—
—
28.00
27.00
27.00
1,349.56
1,367.51
1,395.74
2,247
2,332.5
2,668.5¥    65.14 ¥    56.78 ¥   151.55
—
—
—
28.00
41.00
46.00
1,435.15
1,441.20
1,553.45
2,859.0
1,697.0
3,035.0
Millions of Yen

FINANCIAL POSITION:
Working capital¥  182,111
Total shareholders’ equity
514,996
Total assets
919,295
Capital expenditures
48,615
Depreciation and amortization
38,682
Net cash provided by operating activities
71,843¥  186,868 ¥  179,999 ¥  209,172
534,451
551,379
565,521950,153
1,032,134
1,082,531
48,052
79,53152,02237,93642,26646,05873,95080,075
92,620¥  235,884 ¥  214,661 ¥  164,600
537,821539,179
550,3081,089,437
1,114,672
1,114,870
53,94548,99454,482
46,73946,114
46,42349,71573,32551,728¥  139,835 ¥  134,072 ¥  139,010
565,841555,173576,368
1,123,660
1,100,740
1,089,991
79,83955,03455,432
51,34755,08348,862
118,094
74,434
123,921

U.S. Dollars

$1.37
—
0.42
14.03
—
Thousands of
U.S. Dollars$  1,255,623
5,206,106
9,845,465
500,695
441,349
1,119,332+108.9Delivery

Autoworks

(3.0)

Other

(2.2)
1,695.82021/3

YoY +65.7

Analysis of Operating Profit(¥ billion)

44.7

2020/3+65.7

Revenue
Subcontracting
expenses

5.29

5.16

4.59

4.94

4.84

2.38

2.32

3.59

2.74

5.43

Net margin (%)

1.57

2.74

2.53

2.69

2.78

1.23

1.18

1.58

1.37

3.34

2.18
3.84
164.50
56.02
1.39
90.52
27.8
1.1

3.76
6.70
162.3956.25
1.37
108.36
21.3
1.4

3.51
6.41
151.8253.42
1.39
153.41
27.0
1.7

3.55
6.75
158.5952.24
1.32
173.45
30.7
2.0

3.63
7.15
167.7649.37
1.30
125.33
23.3
1.7

1.64
3.35
157.73
48.37
1.33
81.45
51.4
1.7

1.64
3.35
141.6749.36
1.38
131.94
57.7
1.9

2.29
4.60
134.0750.36
1.45
212.29
43.9
2.0

2.01
3.98
132.8050.44
1.47
106.25
29.9
1.2

5.18
10.02
135.7052.88
1.55
124.5120.0
2.0

Return on assets (ROA) (%)
Return on equity (ROE) (%)
Current ratio (%)
Shareholders’ equity ratio (%)
Assets turnover (Times)
Interest coverage ratio (Times)
Price earnings ratio (PER) (Times)
Price book-value ratio (PBR) (Times)
NON-FINANCIAL DATA:
Number of employees
Full-timePart-timeParcel delivery amount(Millions of parcels)
Unit price (Yen)Kuroneko DM-Bin handling volume(Millions of units)
Unit price (Yen)(10.1)(28.7)

Personnel expenses
Vehicle expenses

KEY RATIOS:
Operating profit margin (%)(37.4)

Financial

+3.7
(5.9)

Other
Consolidation
journal entries

+22.8
92.1

2021/3

YoY +47.4

Quarterly YoY Growth Rates of Parcel Delivery Amountand Unit Price (Excluding Nekopos)(%)

177,301
84,29393,008177,108
84,422
92,686

193,146
87,279105,867

197,056
88,247
108,809

196,582
89,112
107,470

201,784
90,737
111,047

213,096
93,534
119,562

225,125
97,587
127,538

224,945
98,744
126,201

223,191
96,829126,362

1,423
600

1,487
591

1,665
574

1,622
595

1,731
578

1,867
559

1,836
597

1,803
664

1,799
676

2,096
633

2,187
62

2,112
61

2,084
61

1,901
61

Foreign currency translation: U.S. dollar amounts have been translated, for convenience only, at the rate of ¥110.71 to U.S.$1.
Note: On March 31, 2015, we ceased accepting items for Kuroneko Mail and from April 1 launched Kuroneko DM-Bin.

1,536
57

1,542
55

1,464
56

1,211
60

987
65

826
67

25
20
15
10
5
0
(5)
(10)

1Q

2Q

3Q

4Q

1Q

2019/3
Parcel Delivery Amount Growth Rate
Parcel Unit Price Growth Rate

2Q

3Q

2020/3

4Q

1Q

2Q

3Q

4Q

2021/3

Delivery Amount:
YoY +10.8%
Unit Price:
YoY (3.0)%

066

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

067

FINANCIAL SECTIONFINANCIAL SECTION

Consolidated Balance Sheet
March 31, 2021

Thousands of
U.S. Dollars(Note 1)Millions of Yen

ASSETS

2021

2020

2021

CURRENT ASSETS:
Cash and cash equivalents (Notes 2.e and 14)

Millions of Yen

LIABILITIES AND EQUITY

2021

2020

2021

¥   20,000¥   70,000$  180,652

19,055

19,079172,115Trade

153,860

147,082

1,389,758

Other

12,221

12,641

110,391

CURRENT LIABILITIES:¥  241,523¥  197,227$2,181,584

Notes and accounts receivable (Note 14):

Short-term bank loans (Notes 8 and 14)
Current portion of long-term debt (Notes 8 and 14)  Trade212,766

213,981

1,921,832   Installment (Note 4)

45,64346,088412,279   Lease (Note 13)   Allowance for doubtful accounts

Thousands of
U.S. Dollars(Note 1)53,887

Notes and accounts payable (Note 14):

(1,342)(1,440)(12,122)

Income taxes payable

32,09920,377289,938

Inventories (Note 5)

2,281

4,216

20,600Accrued expenses

83,036

77,970750,027

Prepaid expenses and other current assets

27,50828,925

248,470

Deferred profit on installment sales (Notes 4 and 14)

4,781

5,028

43,185528,379

542,884

4,772,643

Other current liabilities (Note 10)64,31756,635580,954389,369

408,8123,517,020    Total current assets    Total current liabilities
PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
VehiclesLONG-TERM LIABILITIES:
174,141
367,719
199,977

175,159362,315214,177

1,572,945
3,321,459
1,806,312

Long-term debt (Notes 8 and 14)

26,09935,760235,741

Liability for employees’ retirement benefits (Notes 2.k and 9)

71,835

79,231

648,855

128,533
36,645
6,345

132,896
31,261
6,418

1,160,988
331,004
57,315

Deferred tax liabilities (Note 12)

5,194

2,064

46,916

Other long-term liabilities (Note 10)

13,207

12,038119,295

116,335

129,093

1,050,807

Others2,156

21,97919,475    Total

915,516

944,205

8,269,498(509,203)(520,369)(4,599,435)

406,313423,836

3,670,063

127,235

127,235

1,149,262

Machinery and equipment
Leased assets (Note 13)
Construction in progress

Accumulated depreciation     Net property, plant and equipment

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 6 and 14) Investments in and advances to unconsolidated subsidiaries and affiliates, netof valuation allowance of ¥371 million ($3,352 thousand) in 2021 and ¥373 million
in 2020 (Note 14)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 12)
Other assets (Notes 2.k and 9)     Total investments and other assets
TOTAL

40,003

29,205361,330    Total long-term liabilities
COMMITMENTS LIABILITIES (Note 13)
EQUITY (Notes 11 and 20):
Common stock—authorized, 1,787,541,000 shares in 2021 and 2020;
issued, 388,575,592 shares in 2021 and 411,339,992 shares in 2020
Capital surplus

36,81336,813

332,519

Retained earnings

431,572

441,747

3,898,218

Treasury stock—at cost, 17,550,515 shares in 2021 and26,124,409 shares in 2020

(39,549)(54,771)(357,232)   Unrealized gain on available-for-sale securities

15,884

8,158

143,473   Foreign currency translation adjustments(1,317)(317)(11,891)   Remeasurements of defined employees’ retirement benefit plans (Notes 2.k and 9)

5,730(3,692)51,757576,368

555,173

5,206,106

7,919

7,662

71,532584,287

562,835

5,277,638¥1,089,991¥1,100,740$9,845,465

Accumulated other comprehensive income:

16,942
1,634
22,082
20,122
45,625

15,2171,240
18,182
18,67145,611

153,030
14,765
199,459
181,753
412,115

8,891

5,894

80,307

155,299

134,020

1,402,759    Total equity¥1,089,991¥1,100,740$9,845,465

TOTAL    Total
Non-controlling interests

See notes to consolidated financial statements.

068

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

069

FINANCIAL SECTIONFINANCIAL SECTION

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

Year Ended March 31, 2021

Year Ended March 31, 2021

Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING REVENUES

2021

2020

2021

¥1,695,867¥1,630,147$15,318,103

Operating costs   Total operating costs and expenses  Operating profit

Millions of Yen

PROFIT

1,538,524

1,526,103

13,896,890

65,221

59,343589,115

1,603,745

1,585,446

14,486,005

92,12244,701

832,098

OTHER INCOME (EXPENSES):$514,267

71,595

2021

7,926

(4,928)

(994)

199

(8,979)Remeasurements of defined employees’ retirement benefit plans

9,422

(613)

85,104

3

(274)

31

Share of other comprehensive income of entities accounted for using equity method   Total other comprehensive income (loss)

16,357(5,616)

147,751COMPREHENSIVE INCOME¥73,292¥17,286$662,018¥72,849¥17,092$658,020

443

194

3,998

1,154

1,096

10,427

(742)

(422)

(6,699)Gain on sales and disposal of property, plant and equipment—net

255

7,528

2,299

Owners of parent(7,920)Non-controlling interests(877)

Gain on sales of marketable and investment securities (Note 6)

(991)
1,300

38

Loss on valuation of investment securities (Note 6)

(355)

(140)

(3,205)

Loss on valuation of investment in unconsolidated subsidiaries and affiliates(18)(2,207)(163)

Share of loss of entities accounted for using equity method(766)(4,169)(6,923)

Loss on liquidation of business

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

See notes to consolidated financial statements.

Gain on sales of shares of subsidiaries and affiliates

347(1,207)

Electric vehicle subsidies

656

5,928

Loss associated with measures to address COVID-19(1,163)(10,509)

Other—net

1,456

(908)

13,150

(362)

(120)

(3,268)91,76044,581

828,830

Current

38,252

23,026345,513

Deferred(3,427)(1,347)(30,950)   Total income taxes

34,825

21,679314,563

PROFIT56,93522,902514,267

234

578

2,113

¥   56,701¥   22,324$   512,154

PROFIT BEFORE INCOME TAXES¥22,902

Unrealized gain (loss) on available-for-sale securities

Interest expense  Other expenses—net

2020¥56,935

Foreign currency translation adjustments

Interest and dividend income

Loss on impairment of long-lived assets (Note 7)

2021

OTHER COMPREHENSIVE INCOME (Note 15):OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses

Thousands of
U.S. Dollars(Note 1)

INCOME TAXES (Note 12):PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT ATTRIBUTABLE TO OWNERS OF PARENT

U.S. Dollars(Note 1)

Yen
2021

2020

¥151.55¥56.78

$1.37

46.00

41.00

0.42

2021

PER SHARE OF COMMON STOCK (Notes 2.q and 16):
Basic earnings
Cash dividends applicable to the year
See notes to consolidated financial statements.

070

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

071

FINANCIAL SECTIONFINANCIAL SECTION

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Year Ended March 31, 2021

Year Ended March 31, 2021

Thousands

Outstanding
Number of
Shares ofCommon Stock Common Stock

BALANCE,APRIL 1, 2019394,274¥127,235

Unrealized
Foreign Currency
Gain onAvailable-for-Sale
Translation
Capital Surplus Retained Earnings Treasury Stock
Securities
Adjustments¥36,813 Cumulative effects ofchanges in accounting
policies¥431,498¥(39,086)¥12,975¥ (515)Remeasurementsof Defined
Employees’
Retirement
Benefit Plans¥(3,079)(641)

RESTATED BALANCE

127,235

36,813 Profit attributable toowners of parent

430,857(39,086)

12,975(515)(3,079)(9,059) Disposal oftreasury stock

1(15,685)

127,235

36,813441,747¥565,841¥7,548565,200(54,771)

Total Equity

2020

7,548

(15,685)

2021

OPERATING ACTIVITIES:Profit before income taxes¥ 91,760¥ 44,581$  828,830  Income taxes—paid(25,390)(30,034)(229,337)   Depreciation and amortization

48,89855,105

441,675   Gain on sales and disposal of property, plant and equipment—net(255)(7,528)(2,299)22,324   Loss on impairment of long-lived assets

877

991

7,920

(11,434)   Gain on sales of marketable and investment securities¥573,389(641)(11,434) Net change in the year

385,216

Total

Non-controlling
Interests

22,324(11,434) Purchase oftreasury stock

Millions of Yen
2021

(641)

22,324 Cash dividends,¥29 per share

BALANCE,MARCH 31, 2020

Thousands of
U.S. Dollars(Note 1)Millions of Yen
Accumulated Other Comprehensive Income

572,748(15,685)

Adjustments for:(1,300)   Gain on sales of shares of subsidiaries and affiliates(38)   Loss on valuation of investment securities

355

140

   Loss on valuation of investment in unconsolidated subsidiaries and affiliates

18

2,207

163

   Share of loss of entities accounted for using equity method

766

4,169

6,923

(4,817)

198

(613)

(5,232)

114(5,118)

8,158

(317)

(3,692)555,173

7,662

562,835  Changes in assets and liabilities, net of effects from previously consolidated
subsidiaries:

(347)
3,205

 Profit attributable toowners of parent

56,701

56,701

56,701 Cash dividends,¥42 per share    (Increase) decrease in notes and accounts receivable(24,967)

4,478(225,512)(15,960)(15,960)(15,960)    Decrease (increase) in inventories

1,517

(702)

13,701    Increase (decrease) in notes and accounts payable

10,026(11,768)

90,564    Increase in liability for employees' retirement benefits

1,942

1,864

17,541  Other—net

18,412

12,231

166,305   Total adjustments

32,161

29,853

290,502    Net cash provided by operating activities

123,92174,434

1,119,332 Purchase oftreasury stock(14,191)(35,694) Retirement oftreasury stock(50,916)

371,025¥127,235¥36,813¥431,572(35,694)

50,916 Net change in the year
BALANCE,MARCH 31, 2021

(35,694)¥(39,549)

7,726(1,000)9,422

16,148257

16,405¥15,884¥(1,317)¥ 5,730¥576,368¥7,919¥584,287

INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment

Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income

Common Stock

BALANCE,MARCH 31, 2020

$1,149,262

Unrealized
Foreign Currency
Gain onAvailable-for-Sale
Translation
Capital Surplus Retained Earnings Treasury Stock
Securities
Adjustments$332,519$3,990,126$(494,720)$ 73,686$ (2,864)

Remeasurementsof Defined
Employees’
Retirement
Benefit Plans

2,084

13,161

18,824(32,075)(54,853)(289,717)

Proceeds from sales of marketable and investment securities

100

1,978

901

Purchases of marketable and investment securities

(793)

(585)

(7,166)93,437(1,663)843,981

Purchases of property, plant and equipment

Total$(33,348) $5,014,661

Non-controlling
Interests$69,209

Total Equity$5,083,870 Decrease (increase) in investments in and advances to unconsolidated subsidiaries
and affiliates Profit attributable toowners of parent

512,154512,154512,154 Cash dividends,$0.38 per share(144,158)(144,158)(144,158)

Collection of loans

1,078

722

9,741

(322,416)

Payment of loans(1,480)(661)(13,363)

Other(17,789)(8,043)(160,685)

44,078(49,944)

398,142 Purchase oftreasury stock(322,416) Retirement oftreasury stock(459,904)

459,904 Net change in the year
BALANCE,MARCH 31, 2021

$1,149,262

See notes to consolidated financial statements.

$332,519$3,898,218(322,416)$(357,232)

69,787(9,027)

85,105

145,865

2,323

148,188$143,473$(11,891)$ 51,757$5,206,106$71,532$5,277,638 Payment for sales of shares of subsidiaries resulting in change in scope of consolidation(Note 19)    Net cash provided by (used in) investing activities(484)(4,374)

FINANCING ACTIVITIES:(Repayments of) proceeds from short-term debt—net(55,904)

45,634(504,959)

Repayments of long-term debt

(15,500)(40,800)(140,005)

Dividends paid

(16,138)(11,512)(145,769)

Purchase of treasury stock—net(35,708)(15,691)(322,536)(22,369)(1,113,246)

Other    Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH
EQUIVALENTS
NET INCREASE IN CASH AND CASH EQUIVALENTS

3(123,247)

23

(130)

(109)

(1,172)

44,622

2,012

403,056

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

196,663

194,651

1,776,376

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.e)¥ 241,285¥196,663$ 2,179,432

See notes to consolidated financial statements.

072

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

073

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
Year Ended March 31, 2021

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance withaccounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2020 consolidated
financial statements to conform them to the classifications and presentations used in 2021.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Yamato
Holdings Co., Ltd. (the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of¥110.71 to $1, the approximate rate of exchange at March 31, 2021. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition costand selling price, and recording impairment loss through profit or loss for other-than-temporary declines in the fair value of
an investment in an equity instrument, where a foreign subsidiary elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.
c. Unification of Accounting Policies Applied to Foreign Affiliated Companies for the Equity Method—ASBJ
Statement No. 16, “Accounting Standard for Equity Method of Accounting for Investments,” requires adjustments to bemade to conform the affiliate’s accounting policies for similar transactions and events under similar circumstances to thoseof the parent company when the affiliate’s financial statements are used in applying the equity method, unless it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign affiliated companies in accordance with either International Financial Reporting Standards or generally accepted accounting principles in the UnitedStates of America tentatively may be used in applying the equity method if the following items are adjusted so that profit
is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive
income; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting ; and (e) recording a

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2021 and 2020, include the accounts of theCompany and its 39 significant subsidiaries (together, the “Group”).
Effective from the fiscal year ended March 31, 2021, Yamato Lease Co., Ltd. was excluded from the scope of consolidation due to the partial transfer of shares, and KURONEKO Innovation Fund L.P. was newly established and is included in
the scope of consolidation.
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method.
The unconsolidated subsidiaries, whose combined assets, net sales, profit and retained earnings in the aggregate are
not significant to the consolidated financial statements, have not been consolidated with the Company.
There were 23 (19 in 2020) affiliates accounted for by the equity method.
Effective from the fiscal year ended March 31, 2021, Yamato Lease Co., Ltd. was excluded from the scope of consolidation due to the partial transfer of shares and is accounted for by the equity method, and VIVL Pte. Ltd. and two othercompanies are included in the scope of the equity method due to GDEX BHD., an affiliate accounted for using equity

gain or loss through profit or loss on the sale of an investment in an equity instrument for the difference between theacquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in
the fair value of an investment in an equity instrument, where a foreign affiliate elects to present in other comprehensive
income subsequent changes in the fair value of an investment in an equity instrument.
d. Recognition of Operating Revenues—The Group recognizes freight charge income as operating revenue at the time
when freight has been received from the shipping customer for transportation.
Fees from customers based on installment sales contracts are recognized by the equal installment method.
e. Cash Equivalents—Cash equivalents in the consolidated statement of cash flows are short-term investments that arereadily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statement of cash flows include time deposits, certificates of deposit, and mutual funds investing in bonds that
represent short-term investments, all of which mature or become due within three months of the date of acquisition.
The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash
equivalents in the accompanying consolidated statement of cash flows was as follows:

method, newly acquiring their shares. GD EXPRESS CARRIER BHD. has changed the company name to GDEX BHD. on
December 17, 2020.
Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated at

2021

Cash and cash equivalents presented in the consolidated balance sheet

cost, less a valuation allowance representing possible losses on the investments that are deemed to be other than tempo-

Time deposits due beyond three months

rary. If the equity method of accounting had been applied to the investments in such companies, the effect on the accom-

Cash and cash equivalents presented in the consolidated statement of cash flows

panying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within the Group is also eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements—
Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements,” the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events undersimilar circumstances should in principle be unified for the preparation of the consolidated financial statements. However,financial statements prepared by foreign subsidiaries in accordance with either International Financial Reporting Standards
or generally accepted accounting principles in the United States of America tentatively may be used for the consolidation
process, except for the following items which should be adjusted in the consolidation process so that profit is accounted
for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortiza-

Thousands of
U.S. Dollars

Millions of Yen¥241,523

2020

2021

¥197,227$2,181,584

(238)

(564)

(2,152)¥241,285¥196,663$2,179,432

f. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.
g. Marketable and Investment Securities—Marketable and investment securities are classified and accounted for,depending on management’s intent, as follows: (1) trading securities, which are held for the purpose of earning capitalgains in near term, are reported at fair value, and the related unrealized gains and losses are included in earnings; (2) heldto-maturity debt securities, for which there is a positive intent and ability to hold to maturity, are reported at amortized
cost; and (3) available-for-sale securities, which are not classified as either of the aforementioned securities, are reported
at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity. The
Group had no trading securities at March 31, 2021 and 2020.
Non-marketable available-for-sale securities are stated at cost determined by the moving-average method.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge toincome.

tion of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c)expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant andequipment and investment properties and incorporation of the cost model accounting; and (e) recording a gain or loss

074

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

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FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
h. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant andm. Leases—For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations inequipment excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantiallythe balance sheet.

by the declining-balance method, while the straight-line method is applied to buildings acquired on or after April 1, 1998,

For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized as

and facilities attached to buildings and structures acquired on or after April 1, 2016. Depreciation of leased assets is com-

lease receivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee are

puted by the straight-line method over the lease period with no residual value carried.

recognized as investments in leases.

The depreciation of property, plant and equipment of foreign consolidated subsidiaries is computed by the straight-line
method over the estimated useful lives of the assets. The range of useful lives is principally as follows:n. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated
statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the

Buildings and structures

7–60 years

expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets

Vehicles

2– 7 years

and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences.

Machinery and equipment

2–20 years
o. Foreign Currency Transactions—All short and long-term monetary receivables and payables denominated in foreign

Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.

currencies are translated into Japanese yen at the exchange rates at the balance sheet date.

i. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circum-

p. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are

stances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognizedtranslated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is trans-

if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected tolated at the historical rate. Differences arising from such translation are shown as “Foreign currency translation adjust-result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be mea-

ments” under accumulated other comprehensive income in a separate component of equity.

sured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the

Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current

discounted cash flows from the continued use and eventual disposition of the asset or the net selling price at disposition.

exchange rates as of the balance sheet date.

j. Other Assets—Amortization of intangible assets is computed by the straight-line method.

q. Per Share Information—Basic earnings per share is computed by dividing profit attributable to common shareholders

Depreciation of leased assets is computed by the straight-line method over the lease period with no residual value
carried.

by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits.
Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into
common stock. Diluted earnings per share of common stock assumes full conversion of the outstanding convertible notes

k. Retirement and Pension Plan—The Company and consolidated subsidiaries mainly have a contributory trusted pension

and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest

plan and an unfunded retirement benefit plan. In addition, a defined contribution retirement plan was introduced along

expense, net of tax, and full exercise of outstanding warrants.

with these defined benefit pension plans.
In calculating the retirement benefit obligations, the straight-line basis is used in determining the amount of the
expected retirement benefit obligations attributed to service performed up to the end of the current fiscal year.
Past service costs are recognized in profit or loss in full in the fiscal year in which it arises. Actuarial gains and losses

For the years ended March 31, 2021 and 2020, diluted earnings per share is not disclosed because the Company had
no dilutive securities.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicableto the respective fiscal years, including dividends to be paid after the end of the year.

are amortized on a straight-line basis over a period within the average remaining service period of the eligible employees(mainly five years) on and after the fiscal year following the fiscal year in which it arises.
Actuarial gains and losses are recognized within equity on the consolidated balance sheet after adjusting for tax

r. Accounting Changes and Error Corrections—Under ASBJ Statement No. 24, “Accounting Standard for Accounting
Changes and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for Accounting Changes

effects, and funded status is recognized as a liability or asset.

and Error Corrections,” accounting treatments are required as follows:l. Asset Retirement Obligations—An asset retirement obligation is recorded for a legal obligation imposed either by law

dard, the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provi-

or contract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset andsions, in which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—Whenis associated with the retirement of such tangible fixed asset.

the presentation of financial statements is changed, prior-period financial statements are reclassified in accordance with

(1) Changes in Accounting Policies—When a new accounting policy is applied following revision of an accounting stan-

The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset

the new presentation. (3) Changes in Accounting Estimates—A change in an accounting estimate is accounted for in theretirement and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a rea-

period of the change if the change affects that period only, and is accounted for prospectively if the change affects both

sonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation is

the period of the change and future periods. (4) Corrections of Prior-Period Errors—When an error in prior-period financial

incurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made.

statements is discovered, those statements are restated.

Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing
the carrying amount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently

s. New Performance-Based Share Remuneration Plan “Board Benefit Trust (BBT)”— In accordance with the resolution

allocated to expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted toat the 155th General Shareholders’ Meeting on June 23, 2020, the Company introduced a new performance-based shareits present value each period. Any subsequent revisions to the timing or the amount of the original estimate of undis-

remuneration plan “Board Benefit Trust (BBT)” for the directors (except for outside directors) and executive officers whocounted cash flows are reflected as reconciliation to the carrying amount of the liability and the capitalized amount of the

do not concurrently serve as directors of the Company (“Officers”). This plan purports to further enhance the connection

related asset retirement cost.

between Officers’ remuneration and performance and share value of the Company, and raise their motivation to makecontributions to increase the Company’s long-term performance and corporate value by sharing not only the benefits of arise in share prices but also the risk of a decline in share prices with shareholders.

076

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

077

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
The Plan is a performance-based share remuneration plan in which the trust acquires the Company’s shares using
money contributed by the Company as the source of funds, and Officers are provided with the Company’s shares andcash equivalent to the market value of the Company’s shares (“Shares of the Company”) through the trust in accordancewith “Regulation for Benefit of Shares to Officers” established by the Company. As a general rule, Officers shall be entitled to receive Shares of the Company at the time of retirement.

3. SIGNIFICANT ACCOUNTING ESTIMATE
Impairment of Long-Lived Assets
Amount recorded in the consolidated financial statements for the current fiscal year based on accounting estimatesthat may have a material impact on the consolidated financial statements for the following fiscal year are as follows:

The Company applies the same accounting method as stipulated in the ASBJ PITF No.30, “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employee etc. through Trusts.”
The book value (excluding incidental costs) of the Company’s shares now held by the trust bank is accounted for astreasury stock in the equity section of the Company’s consolidated balance sheet. At March 31, 2021, the book value andThousands of
U.S. Dollars

Millions of Yen
2021

Property, plant and equipment

2021¥406,313$3,670,063

29,555

266,959

Intangible assets

number of treasury stock held by the trust bank are ¥1,376 million ($12,433 thousand) and 483,700 shares, respectively.
In cases where there are indications that an asset may be impaired, an impairment test is performed based on thet. New Accounting Pronouncements(1) Accounting standards for revenue recognition
In March 2020, the ASBJ issued ASBJ Statement No. 29, “Accounting Standard for Revenue Recognition,” and ASBJ
Guidance No. 30, “Implementation Guidance on Accounting Standard for Revenue Recognition”. An entity should recognize
revenue by applying the following steps:

future cash flows generated by the asset. The cash-generating unit, used to determine whether it is necessary for an
asset to recognize impairment loss, is the smallest unit in an asset group generating cash inflows generally independentof cash inflows from other assets or asset groups. Because the delivery segment holds most of the above property, plantand equipment and intangible assets, the undiscounted future cash flows used in determining recognition of impairment
losses on those assets of the business are based on future management plans that include, as important assumptions,the unit price and the transaction volume of TA-Q-BIN. These assumptions may have a material impact on the consolidated

Step 1: Identify the contract(s) with a customer

financial statements for the following fiscal year and thereafter if it becomes necessary for them to be reconsidered due to

Step 2: Identify the performance obligations in the contract

uncertain economic conditions and the operating conditions of the Group.

Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

4. INSTALLMENT RECEIVABLES
Sales recorded on the installment basis were 0.3% of operating revenues in both 2021 and 2020.

The accounting standard and guidance will be applied from the beginning of the fiscal year that begins on or after April
1, 2021.

Annual maturities of installment receivables at March 31, 2021, and related amortization of deferred profit on installment sales are as follows:

In applying Accounting standards for revenue recognition, retained earnings will be adjusted for cumulative effects ofaccounting policies then. The effect of this application on the consolidated financial statements is immaterial.

(2) Accounting standards and guidance for fair value measurement
In July 2019, the ASBJ issued ASBJ Statement No. 30, “Accounting Standard for Fair Value Measurement”, ASBJ
Statement No. 9, “Accounting Standard for Measurement of Inventories”, ASBJ Statement No. 10, “Accounting Standard
for Financial Instruments”, ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value
Measurement”, ASBJ Guidance No. 19, “Implementation Guidance on Disclosures about Fair Value of Financial
Instruments.”
ASBJ tried ensuring consistency between Japanese accounting standards and international accounting standards
mainly for guidance and disclosures on fair value of financial instruments and issued “Accounting Standard for Fair Value
Measurement”, etc. based on the fact that International Accounting Standards Board and Financial Accounting Standards
Board had already issued detailed guidance on fair value measurement, which are almost identical to each other. As thebasic policy in developing accounting standards for fair value measurement, ASBJ incorporated basically all of the mattersdefined in IFRS 13 Fair Value Measurement from a standpoint of increasing comparability of financial statements among
domestic and foreign companies by using a unified measurement method. Furthermore, ASBJ defined alternative accounting treatment to the individual matters without impairing comparability of financial statements considering accounting
practices, etc. common in Japan.
The accounting standards and guidance will be applied from the beginning of fiscal year that begins on or after April 1,
2021.
The Company is now in the process of measuring the effect of applying the accounting standard and guidance.

078

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

Millions of Yen
Year Ending March 31

Receivables

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

Deferred Profit on
Installment Sales

Receivables

2022¥21,358¥1,796$192,922$16,2212023

10,675

1,249

96,423

11,277

2024

6,258

761

56,523

6,878

2025

3,367

409

30,412

3,695

2026

1,690

213

15,264

1,922

2027 and thereafter

2,295

353

20,735

3,192¥45,643¥4,781$412,279$43,185

Total

5. INVENTORIESInventories at March 31, 2021 and 2020, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

MerchandiseWork in process

2021

2020

2021

¥  392¥  552$ 3,541

118

166

1,063

Raw materials and supplies

1,771

3,498

15,996Total¥2,281¥4,216$20,600

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

079

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
6. MARKETABLE AND INVESTMENT SECURITIES

7.

Marketable and investment securities as of March 31, 2021 and 2020, consisted of the following:

The Group reviewed its long-lived assets for impairment as of the years ended March 31, 2021 and 2020. As a result, theThousands of
U.S. Dollars

Millions of Yen
2021

2020

¥35,833¥26,466$323,662

931

935

8,408

3,239

1,804

29,260¥40,003¥29,205$361,330

2021

Non-marketable equity securities
Other
Total

Group recognized an impairment loss of ¥877 million ($7,920 thousand) as other expense for asset groups of idle assets of
Yamato Transport Co., Ltd. and 10 other asset groups for the year ended March 31, 2021, and ¥991 million as otherexpense for the asset groups of the Trade Logistics Service of Yamato Global Logistics Japan Co., Ltd. and 16 other asset

Non-current:
Marketable equity securities

LONG-LIVED ASSETS

Information regarding each category of the securities classified as available-for-sale at March 31, 2021 and 2020, is as follows:groups for the year ended March 31, 2020, due to continuous operating losses of those units or significant declines inmarket prices. The carrying amounts of the relevant asset groups were written down to their recoverable amounts. In thecase where the net selling prices were used as recoverable amounts, idle assets were evaluated at zero, and the relevant
asset groups other than idle assets were evaluated mainly based on Real Estate Appraisal Standards, assessed value of
fixed assets, and posted land prices. In the case where the recoverable amounts were measured at its value in use, thediscount rates used for computation of present value of future cash flows for years ended March 31, 2021 and 2020, were
5.96% and 4.32%, respectively.

Millions of Yen
2021
Cost

Unrealized Gains

Unrealized Losses¥21,635¥644

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥14,842¥35,833

respectively.

2020
Unrealized Gains

Unrealized Losses¥12,797¥838

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥14,507

2021

Unrealized Losses

Fair Value

Available-for-sale: Equity securities$134,066$195,416$5,820$323,662

Information for available-for-sale securities, which were sold during the years ended March 31, 2021 and 2020, is as follows:2021$ 126,456¥ 19,500

31,154

Unsecured 0.090% bonds due in March 2021
Total

2020

¥ 14,000

0.120% to 0.299% loans from banks due 2020 to 2022
Lease obligations

Securities classified as:

Thousands of
U.S. Dollars

Millions of Yen

0.160% to 0.299% loans from banks due 2021 to 2022

2021
Unrealized Gains

Long-term debt at March 31, 2021 and 2020, consisted of the following:¥26,466

Thousands of U.S. Dollars
Cost

Short-term bank loans at March 31, 2021 and 2020, consisted of notes to banks and bank overdrafts. The weighted-average interest rates applicable to the bank loans as of March 31, 2021 and 2020, were approximately 0.073% and 0.092%,

Millions of Yen
Cost

8. BANK LOANS AND LONG-TERM DEBT

25,339281,400

10,00045,15454,839407,856

Less current portion(19,055)(19,079)(172,115)

Total¥ 26,099¥ 35,760$ 235,741

Millions of Yen

Thousands of
U.S. Dollars

2022¥19,055$172,115

2023

4,534

40,951

2024

3,785

34,189

2025

2,505

22,623

Millions of Yen
March 31, 2021

Proceeds

Realized Gains

Realized Losses¥—

Annual maturities of long-term debt at March 31, 2021, are as follows:

Available-for-sale:
Equity securities

¥ 1

¥—

Other

15

2

¥16

¥  2

Total

Year Ending March 31¥—

Millions of Yen
March 31, 2020

Available-for-sale: Equity securities

Proceeds¥1,978Realized Gains

Realized Losses¥1,300¥—Thousands of U.S. Dollars
March 31, 2021

Proceeds

Realized Gains

Realized Losses$—$—

Available-for-sale:
Equity securities
Other
Total

$  5
135

15

$140

$15

2026

1,504

13,5872027 and thereafter

13,771

124,391

Total¥45,154$407,856$—

Loss on valuation of available-for-sale equity securities for the year ended March 31, 2021 and 2020, were ¥355 million($3,205 thousand) and ¥140 million, respectively.

080

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

081

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
9. RETIREMENT AND PENSION PLANS

The amount of the liability and asset for employees’ retirement benefits that are offset individually by the Company
and subsidiaries are combined.

The Group has defined benefit pension plans and defined contribution retirement plans for employees.
The defined benefit pension plans provide, under most circumstances, that employees terminating their employment
are entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, andThe components of net periodic benefit costs for the years ended March 31, 2021 and 2020, were as follows:

certain other factors. Such retirement benefits are made in the form of a lump-sum severance payment from the Company
or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if

2021

2020

¥14,016¥13,1462021

the termination is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at cer-

Service costtain specific ages exceeding the standard retirement age.

Interest cost

177

171

1,599

Expected return on plan assets

(984)

(979)

(8,882)

Recognized actuarial loss

3,897

2,029

35,198

125

(6)

1,134

¥17,231¥14,361$155,645(1) Defined Benefit Pension Plans
The changes in defined benefit obligation for the years ended March 31, 2021 and 2020, were as follows:

2020

2021

Balance at beginning of year

OthersThousands of
U.S. Dollars

Millions of Yen¥172,209$1,606,318

Service cost

14,01613,146

126,596

Interest cost

177

171

1,599

Actuarial loss arising during the year

1,129

519

10,195Retirement benefits paid

(8,967)(8,210)(80,992)

Balance at end of year

(331)
¥183,859(2,992)¥177,835$1,660,724

Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

2020

¥ 98,728

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined retirement benefit plans for the years ended March 31, 2021 and 2020, were as follows:

Actuarial gain (loss)¥13,337¥(869)$120,468¥13,337¥(869)$120,468

defined retirement benefit plans as of March 31, 2021 and 2020, were as follows:

2021¥97,863$  891,774

984

979

8,882

(2,379)95,420

Total

Contributions from the employer

4,540

4,448

41,012Retirement benefits paid

(2,244)(2,183)(20,268)(391)¥112,181(3,536)¥98,728$1,013,284

Thousands of
U.S. Dollars

Millions of Yen

10,564

Balance at end of year

2021

Total

Actuarial gain (loss) arising during the year

Decrease due to change in scope of consolidation

2020

2021

Unrecognized actuarial gain (loss)

Expected return on plan assets

Thousands of
U.S. Dollars

Millions of Yen

Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect ofThe changes in plan assets for the years ended March 31, 2021 and 2020, were as follows:

2021

Net periodic benefit costs$126,596

2021¥177,835

Decrease due to change in scope of consolidation

2021

2020

2021

¥8,108¥(5,232)$73,240¥8,108¥(5,232)$73,240

2021

2020

Plan assets as of March 31, 2021 and 2020, consisted of the following:
General accounts

30%

33%

Debt investments

23

24

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obliga-

Equity investments

24

18

tion and plan assets as of March 31, 2021 and 2020, were as follows:

Others

23

25

Total

100%

100%

Thousands of
U.S. Dollars

Millions of Yen
2021

2020

2021

Defined benefit obligation of funded plan¥  66,676¥ 65,656$  602,257

Plan assets(112,181)(98,728)(1,013,284)(45,505)(33,072)(411,027)

117,183

112,179

1,058,467¥  71,678¥ 79,107$  647,440

Defined benefit obligation of unfunded plan
Net liability arising from defined benefit obligation

Thousands of
U.S. Dollars

Millions of Yen

Liability for employees’ retirement benefits
Asset for employees’ retirement benefits
Net liability arising from defined benefit obligation

082

Thousands of
U.S. Dollars

Millions of Yen

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

2021

2020

¥71,835¥79,231

(157)

(124)

(1,415)¥71,678¥79,107$647,440

2021$648,855

Assumptions used for the years ended March 31, 2021 and 2020, were set forth as follows:
2021

2020

Discount rate

0.1%

0.1%

Expected rate of return on plan assets

1.0%

1.0%

The expected rate of return on plan assets is determined on the basis of the distribution of plan assets, past performance of respective assets that make up investments of plan assets, and market trends.

(2) Defined Contribution Retirement Plans
The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2021
and 2020, were ¥3,060 million ($27,642 thousand) and ¥2,764 million, respectively.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

083

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
10.		 ASSET RETIREMENT OBLIGATIONS

12.		 INCOME TAXESThe changes in asset retirement obligations for the years ended March 31, 2021 and 2020, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

The Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggre-

2021

2020

2021

¥8,927¥8,686$80,631

Additional provisions associated with the acquisition of property,
plant and equipment

840

777

7,589

Reconciliation associated with passage of time

107

112

966

Reconciliation associated with changes in accounting estimates

(19)

(89)

(171)

Reduction associated with settlement of asset retirement obligations

(206)

(559)

(1,856)

OthersBalance at end of year(3)
¥9,646(30)¥8,927$87,129

Changes in accounting estimates were recorded as it became evident that the estimate of the discounted cash flows
required for future asset retirement would change at the beginning of the year. A reconciliation has been prepared for thechange, which resulted in a decrease of the asset retirement obligation for the years ended March 31, 2021 and 2020, by¥19 million ($171 thousand) and ¥89 million, respectively.

11.		EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters are summarized below:

a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders’ meeting. For companies that meet certain criteria such as (1) having a Board of
Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service of thedirectors being prescribed as one year rather than the normal two-year term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. The Company meets all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to acertain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available fordividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal
reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional
paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts within equity undercertain conditions upon resolution of the shareholders.

gate, resulted in normal effective statutory tax rates of 30.6% for the years ended March 31, 2021 and 2020.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets
and liabilities at March 31, 2021 and 2020, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2021

2020

¥ 12,265¥ 10,961$ 110,788   Legal welfare expense

2,027

1,811

18,308  Enterprise tax

2,312

2,100

20,884

492

679

4,446

   Tax loss carryforwards

11,593

10,056

104,718   Liability for employees’ retirement benefits

24,591

24,425

222,119   Loss on valuation of land

20,75920,759187,511   Loss on impairment of long-lived assets

4,326

4,656

39,076   Loss on valuation of investment securities

1,167

1,145

10,536  Unrealized profit

3,047

3,048

27,521

2021

Deferred tax assets:   Accrued expenses   Allowance for doubtful accounts   Loss on valuation of telephone subscription rights

417

403

3,765

8,251

7,863

74,524   Total of tax loss carryforwards and temporary differences

91,24787,906824,196   Less valuation allowance for tax loss carryforwards(11,588)(9,541)(104,663)   Less valuation allowance for temporary differences(26,637)(26,947)(240,602)  Other   Total valuation allowance
Deferred tax assets(38,225)(36,488)(345,265)¥ 53,022¥ 51,418$ 478,931¥ (5,807)(3,318)$ (52,453)

Deferred tax liabilities:   Unrealized gain on available-for-sale securities  Other(6,784)(4,553)(61,279)

Deferred tax liabilities¥(12,591)(7,871)$(113,732)

Deferred tax assets—net¥ 40,431¥ 43,547$ 365,199

The expiration of tax loss carryforwards, the related valuation allowances and the resulting net deferred tax assets as ofMarch 31, 2021, are as follows:
Millions of Yen

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

2022¥   198¥   (198)

2023

308

(308)

2024

353

(353)

2025

118

(118)

2026

¥—

109

(109)

2027 and thereafter

10,507(10,502)5

Total¥11,593¥(11,588)¥ 5

c. Treasury Stock
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution
to the shareholders, which is determined by a specific formula. The Companies Act also provides that companies canpurchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented asa separate component of equity.

084

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

085

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
The minimum rental commitments under non-cancelable operating leases at March 31, 2021 and 2020, are as follows:

Thousands of U.S. Dollars

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

2022$  1,786$  (1,786)

2023

2,781

(2,781)

2024

3,186

(3,186)

2025

1,065

(1,065)

2026

987

(987)

94,913(94,858)

55$104,718$(104,663)$55

2027 and thereafter
Total

$—

nying consolidated statement of income for the year ended March 31, 2021, with the corresponding figures for 2020 was
as follows:
2020

2021

Normal effective statutory tax rate

30.6%

30.6%

Per capita levy of local taxes

3.4

7.2

Difference of tax rates for foreign subsidiaries

0.1

1.3

Valuation allowance

2.6

5.7

Share of profit or loss of entities accounted for using equity method

0.3

2.9

Other—net

1.0

0.9

Actual effective tax rate

38.0%

48.6%

(1) Lessee
The Group leases certain building, machinery, computer equipment and other assets.
Future rental payments under non-cancelable operating leases at March 31, 2021 and 2020, were as follows:

Due within one year

Thousands of
U.S. Dollars

2021

2020

¥ 5,451¥ 4,996¥—¥3,109¥—¥6,380Due after one year

2021

$—

3,271
$—

As Yamato Lease Co., Ltd. was excluded from the scope of consolidation as a result of the sales of shares, there wereno finance leases or operating lease transactions by the lessor during the current fiscal year.

14.		 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt including bank loans and bonds, in order to expand its business based on its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets.
Derivatives are used, not for speculative purposes, but to manage exposure to interest fluctuation risk. Certain consolidated subsidiaries conduct leasing or installment sales operations.
(2)	Nature and Extent of Risks Arising from Financial Instruments and the Risk Management for Financial Instruments
Receivables such as notes and accounts receivable and installment sales receivable are exposed to customer credit risk.
Therefore, the Group minimizes customers’ credit risk by monitoring collections and accrued receivables at due dates.
Marketable and investment securities are mainly equity securities of the companies with which the Group has business relationships or capital alliances. Such securities are exposed to the risk of market price fluctuations.
Most payment terms of payables such as notes and accounts payable are less than one year.
Short-term bank loans and long-term bank loans are mainly related to a financial business. Bank loans are mainly variable interest rate loans.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as
through fund settlement, bookkeeping, monitoring of the balances outstanding, and managing cash flows.

13.		LEASES

Millions of Yen

2020

2021

Due within one year
Total

Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompa-

Thousands of
U.S. Dollars

Millions of Yen

2021$ 49,236

Due after one year

21,07925,672

190,396

Total¥26,530¥30,668$239,632(3) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If a quoted price is not available, otherrational valuation techniques are used instead. The value could vary depending on the technique used.
Fair values of financial instruments at March 31, 2021 and 2020, were as follows:
Millions of Yen
March 31, 2021

Carrying Amount

Fair Value

Difference

Assets:(2) Lessor
The net investments in lease as of March 31, 2021 and 2020, were summarized as follows:
Thousands of
U.S. Dollars

Millions of Yen
2020

2021

Gross lease receivables¥—¥50,250

Unguaranteed residual values

6,544

Unearned interest income(3,853)

Investments in leases—current¥—¥52,9412021

Cash and cash equivalents¥241,523

Trade notes and accounts receivable

212,766   Allowance for doubtful accounts

212,754¥   17

39,84244,6004,758

Available-for-sale securities

35,83335,833

Shares of affiliates

7,003

13,194

Trade notes and accounts payable

153,860

153,860

Short-term loans

34,00033,997   Allowance for doubtful accounts   Deferred profit on installment sales

$—

(29)
212,737

Installment sales receivable$—¥241,523

45,643(1,020)(4,781)

6,191

Liabilities:(3)Long-term loans

086

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

087

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
Marketable and investment securities

Millions of Yen
March 31, 2020

Carrying Amount

Fair Value

The fair values of marketable and investment securities are measured at the quoted market price of the stock exchange forDifference

Assets:the equity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. Fair

Cash and cash equivalents¥197,227

Trade notes and accounts receivable

213,981   Allowance for doubtful accounts

value information for marketable and investment securities by classification is included in Note 6.

(53)
213,928

Installment sales receivable¥197,227

Trade notes and accounts payable

213,503¥ (425)

The fair values of payables, all of which are substantially paid within one year, are measured at the amount to be paid.

46,088   Allowance for doubtful accounts(1,218)   Deferred profit on installment sales(5,028)

Short-term loans and long-term loans

The fair values of short-term bank loans and long-term loans are determined by discounting the future cash flows related

39,84244,8084,966

Available-for-sale securities

26,466

26,466to the debt at the Group’s assumed corporate borrowing rate.

Shares of affiliates

8,045

9,229

1,184

bank loans on the consolidated balance sheet. Lease payments are not included in long-term loans in the above table.

Trade notes and accounts payable

147,082

147,082

Short-term loans

75,50075,497(3)

Long-term loans

14,00014,0022

Liabilities:

The current portion of long-term bank loans is included in short-term loans in the above table in addition to short-term(4) Financial Instruments Whose Fair Value Cannot Be Reliably Determined

2021

2020

2021

Shares of affiliates¥4,359¥2,162$39,370

Other

5,037

3,637

45,496

Thousands of U.S. Dollars
March 31, 2021

Carrying Amount

Fair Value

Cash and cash equivalents$2,181,584$2,181,584

Trade notes and accounts receivable

1,921,832

Difference

Assets:   Allowance for doubtful accounts
Installment sales receivable(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen(262)
1,921,570

March 31, 2021

1,921,720$   150

412,279¥241,523

Trade notes and accounts receivable

212,686(9,215)

Installment sales receivable   Deferred profit on installment sales(43,185)

Total
402,859

Available-for-sale securities

323,662

323,662

Shares of affiliates

63,258

119,173

55,915

Short-term loans

1,389,758

1,389,758

307,108

307,086

March 31, 2020

The carrying values of cash and cash equivalents approximate fair value because of their short maturities.
Trade notes and accounts receivable¥    80

21,35821,990¥2,295¥22,070¥2,295Due in One Yearor Less

Due after One Yearthrough Five Years

Cash and cash equivalents¥197,227

Trade notes and accounts receivable

199,214Total

Long-term loans

Cash and cash equivalents

Due after
Five Years

Millions of Yen

Installment sales receivable(22)

Due after One Yearthrough Five Years¥475,567

42,980Liabilities:
Trade notes and accounts payable

Due in One Yearor Less

Cash and cash equivalents   Allowance for doubtful accounts

359,879

Thousands of
U.S. Dollars

Millions of Yen

Due after
Five Years¥14,657¥  11022,46722,242

1,379¥418,908¥36,899¥1,489Thousands of U.S. Dollars
March 31, 2021

Due in One Yearor Less

Cash and cash equivalents$2,181,584

Trade notes and accounts receivable

1,921,103$    729

192,922

198,622$20,735$4,295,609$199,351$20,735

Installment sales receivable
Total

Due after One Yearthrough Five Years

Due after
Five Years

The fair values of receivables are measured at the amount to be received at maturity discounted at the Group’s assumed
corporate discount rate. A portion of these receivables is determined by discounting the future cash flows related to thereceivables at the rate of government bonds.

(6) Maturity Analysis for Long-Term Loans
Year Ending March 31

Millions of Yen

Thousands of
U.S. Dollars

Installment sales receivable

2022

Allowances for doubtful accounts and deferred profit on installment sales are deducted from the fair values of installment¥14,000$126,456

Total¥14,000$126,456

sales receivable, which are determined by discounting the future cash flows related to the installment sales receivable atthe market interest rate.

088

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

Please see Note 8 for annual maturities of long-term loans.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

089

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements
15.		 OTHER COMPREHENSIVE INCOME

17.		 SEGMENT INFORMATIONThe components of other comprehensive income for the years ended March 31, 2021 and 2020, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2020

2021

2021

Unrealized gain on available-for-sale securities:
Adjustments arising during the year

¥10,487¥(5,579)(72)(1,086)(645)

Amount before income tax effect

10,415(6,665)

94,077

Income tax effect(2,489)1,737(22,482)¥ 7,926¥(4,928)$ 71,595¥(994)¥  199$   (8,979)

Reclassification adjustments to profit or loss

Total

$ 94,722

Foreign currency translation adjustments:
Adjustments arising during the year
Remeasurements of defined employees' retirement benefit plans:
Adjustments arising during the year

¥ 9,435¥(2,898)$ 85,225

Reclassification adjustments to profit or loss

3,902

2,029

35,243

Amount before income tax effect13,337(869)

120,468

Income tax effect(3,915)

256(35,364)¥ 9,422¥  (613)$85,104¥     1¥  (274)$     11

Total
Share of other comprehensive income of entities accounted for using equity
method:Adjustments arising during the year
Reclassification adjustments to profit or loss

2

Total
Total other comprehensive income (loss)

20¥     3¥  (274)$     31

¥16,357¥(5,616)$147,751(1) Description of Reportable Segments
The Group identifies operating segments as components of entity for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to beallocated to the segments and assess their performance.
The Company, as a pure holding company, forms six reportable segments classified according to business content andmanages them based on these reportable segments. Therefore, the Group has the following six reporting segments:“Delivery,” “BIZ-Logistics,” “Home Convenience,” “e-Business,” “Financial,” and “Autoworks” based on the above policy.
The Group defines the reporting segments as follows:
Delivery:		Small-parcel delivery services such as TA-Q-BIN (door-to-door parcel delivery) and Kuroneko DM-Bin(posting service)
BIZ-Logistics:		

Intercompany logistics services, aimed at the B2B supply-chain management market

Home Convenience:	Lifestyle support services intimately connected with the needs of local markets, such as moving andhousehold effects delivery services
e-Business:		Information services targeted at the business market, including ASP services and the development of
information systems
Financial:		Financial services targeted at business customers and consumers, such as settlement and collection
Autoworks:		Vehicle maintenance services and fuel supply targeted at transport companies(2) M ethods of Measurement for the Amounts of Segment Revenues, Segment Profit, Segment Assets, andOther Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of
Significant Accounting Policies.”

16.		 EARNINGS PER SHARE
Basic earnings per share (“EPS”) for the years ended March 31, 2021 and 2020, was as follows:
Millions of Yen
Year Ended March 31, 2021

Basic EPS—Profit attributable to common shareholders

Thousands ofSharesProfit Attributable to Weighted-average
Owners of Parent
SharesYen

U.S. Dollars
EPS¥56,701

374,150¥151.55¥22,324

393,171¥56.78$1.37

Year Ended March 31, 2020

Basic EPS—Profit attributable to common shareholders

090

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

091

FINANCIAL SECTIONFINANCIAL SECTION

Notes to Consolidated Financial Statements(3) Information about Segment Revenues, Segment Profit, Segment Assets, and Other Items[Related Information about Reporting Segments](1) Information about Products and Services
Operating revenues from customers for the years ended March 31, 2021 and 2020, were as follows:

Millions of Yen

2021
Delivery

BIZ-Logistics

Home
Convenience

e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Millions of Yen

Segment revenues:Segment revenues
from customers
Intersegment revenues
Total segment revenues
Segment profit (loss)
Segment assets¥1,418,993
58,909¥1,477,902¥146,609
14,742¥161,351¥26,848
10,733¥37,581¥28,418
50,583¥79,001¥ 39,672
100¥ 39,772¥21,833
31,612¥53,445¥13,494
61,709¥75,203¥1,695,867
228,388¥1,924,255¥      —
(228,388)¥(228,388)¥1,695,867¥1,695,867¥   77,196
757,833¥  5,109
78,317¥ (5,700)
13,675¥11,669
52,327¥  6,277
140,914¥ 3,600
30,102¥21,136
22,403¥  119,287
1,095,571¥ (27,165)(5,580)¥   92,122
1,089,991

Other:
Depreciation andamortization
Investment in entities  accounted for using
equity method
Increase of tangible and   intangible fixed assets

2020

2021
TA-Q-BIN¥1,269,483

3,433

430

1,599

35,066

3,945

452

908

2,500

2,783

1,075

756

2,116

2,502

936

600

47,367

1,495

48,862

2,029

9,162

11,191

47,9207,512

55,432

Other¥53,010¥373,374

Total

TA-Q-BIN¥1,695,867¥1,164,287

Kuroneko DM-Bin

Other$478,815

Segment profit (loss)
Segment assets¥1,630,147

Total$3,372,541 $15,318,103

Millions of Yen
2020

2021
Japan

Delivery

BIZ-Logistics

Home
Convenience¥1,310,068
56,763¥1,366,831¥143,934
13,837¥157,771¥ 27,806
11,399¥ 39,205¥30,579
43,188¥73,767¥ 77,073
2,815¥ 79,888¥24,923
30,976¥55,899¥15,764
66,018¥81,782¥1,630,147
224,996¥1,855,143¥      —
(224,996)¥(224,996)¥1,630,147Japan¥   27,250
687,610¥  4,976
74,998¥(10,062)
12,649¥10,669
47,452¥  6,323
245,235¥ 4,295
29,567¥36,045
22,458¥   79,496
1,119,969¥ (34,795)(19,229)¥   44,701
1,100,740$15,030,779

41,586

3,301

433

3,231

4,725

678

842

54,796287

55,083

440

1,550

1,990

8,045

10,035e-Business

Financial

Autoworks

Other

Total

Reconciliation

Consolidated

Segment revenues:

Total segment revenues

Total¥404,444(2) Information about Geographical Areas
Operating revenues for the years ended March 31, 2021 and 2020, were as follows:

2020

Intersegment revenues

Other¥61,4162021
TA-Q-BIN

Millions of Yen

Segment revenues
from customers

Kuroneko DM-Bin

Thousands of U.S. Dollars$11,466,747
38,215

Kuroneko DM-Bin

North America¥1,664,057

Other¥11,049¥20,761

Total

Japan

North America¥1,695,867¥1,599,373

Other¥11,517

Total¥19,257¥1,630,147

Thousands of U.S. Dollars¥1,630,147

2021
North America

Other$99,801

Total$187,523 $15,318,103

Other:
Depreciation andamortization
Investment in entities  accounted for using
equity method
Increase of tangible and   intangible fixed assets

Property, plant and equipment at March 31, 2021 and 2020, were as follows:
Millions of Yen

41,852

3,184

325

1,884

4,334

1,639

637

53,855

1,179

55,034Japan

BIZ-Logistics

Intersegment revenues
Total segment revenues
Segment profit (loss)
Segment assets

Financial

Autoworks

Other

Total

Reconciliation

Consolidated$12,817,211
532,100$13,349,311$1,324,264
133,159$1,457,423$242,506
96,950$339,456$256,686
456,901$713,587$  358,335
904$  359,239$197,215
285,536$482,751$121,886
557,392$679,278$15,318,103
2,062,942$17,381,045$        — $15,318,103(2,062,942)$(2,062,942) $15,318,103$   697,279
6,845,205$   46,143
707,406$ (51,485)
123,520$105,405
472,654$   56,694
1,272,821$ 32,520
271,898$190,917
202,362$ 1,077,473
9,895,866$  (245,375) $   832,098(50,401)
9,845,465

345,183

31,0084,079

22,584

9,708

6,832

8,452

427,846

Investment in entities  accounted for using
equity method

3,885

14,441

Increase of tangible and   intangible fixed assets

316,742

35,634

8,198

25,142

19,114

22,597

5,416

13,503

YAMATO HOLDINGS CO., LTD.
Integrated Report 2021

¥1,792

Japan

North America¥421,921¥406,313

North America$4,049

Other

Other

¥403

Total

¥1,512¥423,836

Total$16,180$3,670,063(3) Information about Loss on Impairment of Long-Lived Assets by Reporting Segments
Loss on impairment of long-lived assets by reporting segments for the years ended March 31, 2021 and 2020, were as
follows:
Millions of Yen

441,349

18,32682,757101,083

432,843

67,852500,695

Notes: “Other” includes JITBOX charter services and shared services.
	Segment revenues and segment profit of “Other” include dividends for the years ended March 31, 2021 and 2020, of ¥29,569 million ($267,083 thousand) and ¥37,024
million, respectively, which the Company received from its subsidiaries as a pure holding company.
Reconciliations are as follows:		 (1) R econciliations of segment profit for the years ended March 31, 2021 and 2020, of ¥ 27,165 million ($245,375 thousand) and ¥34,795 million, respectively, areintersegment eliminations and others.
		 (2) R econciliations of segment assets at March 31, 2021 and 2020, of ¥5,580 million ($50,401 thousand) and ¥19,229 million, respectively, include intersegment
eliminations of assets and liabilities of ¥190,713 million ($1,722,639 thousand) and ¥151,149 million, and corporate assets which are not allocated to each reporting segment of ¥185,133 million ($1,672,238 thousand) and ¥131,920 million, respectively.
		 (3) R econciliations of investments in entities accounted for using equity method at March 31, 2021 and 2020, of ¥9,162 million ($82,757 thousand) and ¥8,045 million, respectively, are investments which are not allocated to each reporting segment.
		 (4) R econciliations of increases of tangible and intangible fixed assets at March 31, 2021 and 2020, of ¥7,512 million ($67,852 thousand) and ¥1,179 million, respectively, include the Company’s capital investment.
	Segment profit is reconciled with operating profit in the consolidated statement of income.

092

Japan

$3,649,834

Other:
Depreciation andamortization

¥448

Total

2021
e-Business

Segment revenues:Segment revenues
from customers

Other

Thousands of U.S. Dollars

2021
DeliveryNorth America¥404,073

Thousands of U.S. Dollars
Home
Convenience

2020

2021

2021

Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

¥332

¥498

Home
Convenience e-Business

Financial

Autoworks

Other

¥47

Total

¥877

Eliminations or
Corporate
Consolidated¥877

Millions of Yen
2020

Loss on impairmentof long-lived assets

Delivery

BIZ-Logistics

Home
Convenience

¥267

¥678

¥46

e-Business

Financial

Autoworks

Other

Total

¥991

Eliminations or
Corporate
Consolidated¥991

Thousands of U.S. Dollars
2021
Delivery

BIZ-Logistics

Loss on impairmentof long-lived assets $2,998$4,498Home
Convenience

e-Business

Financial

Autoworks

$424

Other

Total

$7,920Eliminations or
Corporate
Consolidated$7,920

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Notes to Consolidated Financial Statements
18.		 RELATED PARTY DISCLOSURES
Transactions of the Group and related parties for the year ended March 31, 2021 were as follows:
Category

Name of Company

Address

Affiliated company

Yamato Lease
Co., Ltd

Toshima-ku,
Tokyo

Paid-in CapitalBusiness¥30 million

GeneralLeasing

Millions of Yen
Transactions during the year ended March 31, 2021

Ratio of Voting Rights

Relation with Related Party

40.0%

Loan for operating fundInterlocking directorate

Thousands of U.S. Dollars
Balance at March 31, 2021

Transactions during the year ended March 31, 2021

Balance at March 31, 2021

Summary of Transaction

Transacted AmountTitle of AccountAmountTransacted AmountAmountRepayment of loan
for operating fund¥94,273—¥—$851,531$—

19.		 SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWSIn April 2020, the Company sold 60% of the shares of Yamato Lease Co., Ltd. As a result, Yamato Lease Co., Ltd. was
excluded from the scope of consolidation.
The assets and liabilities of Yamato Lease Co., Ltd. at the time of sales and reconciliation between the selling price andthe payment for sales of shares are as follows:
Millions of Yen

Thousands of
U.S. Dollars

Current assets¥ 93,168$ 841,550

Long-lived assets

14,055

126,947

Current liabilities(99,275)(896,712)

Long-term liabilities(2,820)(25,473)

Investment account after sales of shares(2,051)(18,525)

Gain on sales of shares

38

347

Other

4

33

Selling priceCash and cash equivalents
Net payment for sales of shares

3,119

28,167(3,603)(32,541)¥   (484)$  (4,374)

20.		 SUBSEQUENT EVENTSAppropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2021, was approved at the Company’s Board of Directors
meeting held on May 17, 2021:

Year-end cash dividends, ¥30 ($0.27) per share*

Millions of Yen

Thousands of
U.S. Dollars¥11,145$100,671* The total cash dividends approved at the Company’s Board of Directors meeting held on May 17, 2021, include the dividends of ¥15 million($131 thousand) for
the share of the Company held by “Board Benefit Trust (BBT)”.

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