Yamato Group Corporate Social Responsibility Report 2016

We are committed to becoming a company
most loved and trusted by society
Web edition

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

2

CSR Management……………………………………………

7

Our Major Initiatives…………………………………………………… 10

Environment

Feature article 2015
Society

Supporting people’s daily lives using
community hubs …………………………………………… 14

Under the key word “Necology,”
we create environmentallyfriendly logistics. ……………………………………… 31

We aim to earn the trust andrespond to expectations of
all stakeholders. ……………………………………… 33

Watching over the elderly with our
TA-Q-BIN network ………………………………………… 20
Revitalizing local economies by expanding
sales channel with International Cool
TA-Q-BIN………………………………………………… 24

Governance

Governance ……………………………………………… 36

Awards & Recognition
EconomySafety………………………………………………… 42

Third-Party Opinion ……………………………………………………… 43

Overview and Major Indicators of theMedium-term Management Plan
DAN-TOTSU Three-Year Plan STEP ……… 28

Policy for Publishing CSR Information ……………………………… 49
Participation in the UN Global Compact …………………………… 50

With respect for human life as our
top priority, we are always striving
to achieve safety. …………………………………… 29-1-

| Message from the President |TA-Q-BIN celebrated its 40th anniversary in January 2016. The number of TA-Q-BIN parcels we handle inJapan has exceeded 1.7 billion annually, demonstrating just how widely used this service has become as away of sending small parcels between not only consumers but from business to consumer and from businessto business. Over the years, we have rigorously examined our businesses not only from an economic aspect,
but also safety, the environment and society as well, so that we can fulfill our corporate social responsibilites(CSR) as a company whose logistics services centered on TA-Q-BIN form an important piece of social
infrastructure. Looking ahead, we recognize that our social responsibilities will grow as we expand ourbusiness operations, and so we must devote even greater efforts to fulfilling our responsibiliteis to society.
In addition to initiatives for fulfilling our corporate social responsibilities,
we are also focusing on Project G (Government), which calls forhelping to resolve social issues through close partnerships with local
governments and others. We have examined 1,770 projects as of June
2016 and of these currently 529 are being provided as actual services.
Rural Japan is faced with depopulation, a falling birthrate and risingelderly population, as well as deteriorating finances, which havecaused government services for local residents to be scaled back oreliminated altogether. Other issues include the growing disparity
between urban and rural areas as well as the decay of local industries.
Given this situationn, as part of the Yamato Group’s approach toCreating Shared Value (CSV), we are turning the information
technology (IT), logistics technology (LT), and financial technology (FT)

Lifestyle Support Service launched in
Tama New Townof our group companies into platforms through partnerships with local people, NPOs as well as similar
companies operating in the community to tackle local issues together with local governments. For example,
we offer watch-over support for the elderly by delivering periodicals published by local governments once amonth as TA-Q-BIN in order to regularly check on the well-being of elderly living in the ommunity. We also-2-

| Message from the President |provide shopping support for those local residents who are unable to travel to stores to do their shopping. In
this manner, we are proposing solutions that harness the functions of the Yamato Group based on the issuesof the local community. In April 2016, we launched the new lifestyle support service as a model for revitalizing
local communities in urban areas. Through this service we are aiming to make Tama New Town a more
attractive place to live by improving convenience for local residents through solutions made possible with theknow-how and expertise of the Yamato Group, Urban Renaissance Agency and the City of Tama.
Going forward, we hope to create more new services through Project G that are considered to be social
infrastructure and contribute to society.
Yamato Group Corporate Philosophy-3-

| Message from the President |Yamato Group, under its long-term management plan ending in fiscal 2019 called “DAN-TOTSU Management
Plan 2019,” is aiming to become “Asia’s No. 1 solutions provider in distribution and lifestyle support,”
becoming the undisputed leader (DAN-TOTSU) in customer satisfaction, shareholder satisfaction, social
satisfaction, and employee satisfaction. The second phase of this process involves the “DAN-TOTSU
Three-Year Plan STEP,” under which we are promoting the “Value Networking” design and the fostering of asound corporate culture.
The “Value Networking” design will seek to evolve logistics from a cost to a means for generating value by
restructuring our network in Japan and international markets in an effort to support Japan’s growth strategy
through logistics restructuring that involves all customer business segments and sizes. To promote thisconcept, in 2013 we opened Haneda Chronogate as the centerpiece of this concept. This facility willtransform customers’ businesses by providing value-added functions such as in-house repairs, assembly,
processing, and cleaning, in addition to speedy transport taking advantage of its favorable location for linking
regions around the country and internationally.
We are also moving forward with plans to construct gateway logistics terminals in every major region ofJapan. These facilities will have cutting edge sorting facilities that enable highly efficient sorting, which will
make it possible for same-day deliveries between major cities, reduce transport costs, and alleviate labor
shortages. In 2013, we opened the Atsugi Gateway for the Kanto Region and we plan on opening the Chubu
Gateway for the Chubu Region in 2016 and a new gateway in the Kansai Region in 2017.
In terms of overseas shipments, we have worked to expand exports of Japanese agricultural and fisheries
products. We have also expanded International Cool TA-Q-BIN services to include Hong Kong, Taiwan,
Singapore and Malaysia so that Japan’s fresh seasonal foods can be shipped in small lots at frequentintervals to maintain straight-from-the-producer freshness.
Moving forward, under the “Value Networking” design, we will seek to increase the speed of customer
distribution like never before, while cutting costs and improving quality.
Medium-term Management DAN-TOTSU Three-Year Plan STEP (Fiscal 2014 - Fiscal 2016)-4-

| Message from the President |Yamato Group will celebrate its 100th anniversary in 2019. Over the
past century, we have constantly pursued innovation that delivers both
economic and societal value while resolving customer issues. This
pursuit has resulted in a number of world’s first services and solutions.
The foundation for sustaining this approach to business is the fosteringof a sound corporate culture, which is cited as one goal of the“DAN-TOTSU Three-Year Plan STEP.” Yamato Group’s CSR is defined
as living up to the trust and expectations of all stakeholders by fulfilling
responsibilities in not only the economy, but in safety, the environment,
and society, based on the 10 aspects of our corporate stance, including“respect for human life,” “a corporation trusted by the local community”
and “promoting environmental protection,” and which form the heart of
the Yamato Group Corporate Philosophy.
In particular, with regards to safety, everyone at the Yamato Group is
working with a strong conviction to achieving zero traffic accidents andzero occupational accidents. We operate a fleet of more than 50,000
vehicles and use public roads as part of our transport operations, which
is why community-friendly driving as well as ensuring people’s safety
on the road is of paramount concern to us.
In terms of the environment, we refer to environmental protection
activities carried out across the Yamato Group as “Necology.” In
addition to the packaging, transport and delivery process of logistics,
we are also working diligently to reduce the ecological impact of ourother business activities to ensure that our logistics is asenvironmentally friendly as possible.

-5-

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

| Message from the President |We are working to strengthen corporate governance with the fundamental goal of ensuring the soundness ofmanagement as well as facilitating swift and appropriate decision making and business execution. In fiscal
2015, we formulated our own guidelines on corporate governance.
We revised our business continuity plan (BCP) based on our response to the earthquake that struck
Kumamoto Prefecture in April 2016 and to prepare for the highly likely scenario of a major earthquake striking
directly under the Greater Tokyo Metroplitan Area or in the Nankai Trough off the coast of Central Japan,
leading to catastrophic damages. As we move forward with the globalization of our businesses, we became asignatory to the UN Global Compact, a framework advocated by the UN for achieving sustainable growth, in
April 2014 and stated our support for the four fields of focus (human rights, labor, the environment andanti-corruption) and 10 principles.
We also recognize that corporate value extends beyond mere financial assessments such as operating
income to include customer satisfaction, shareholder satisfaction, social satisfaction and employee
satisfaction. We believe that enhancing overall corporate value including CSR activities will link with thecontinual and sustained growth of the Yamato Group. Going forward, the Yamato Group will make further
efforts to become a company most loved and trusted by society. Your continued support is greatly
appreciated.

-6-

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

-7-

| CSR Management |CSR Management System
Yamato Group companies obtain external certification for quality, safety and the environment, among otherareas, in order to heighten the effectiveness of their CSR activities. Certifications obtained in fiscal 2016 areoutlined below.
* See the “Information Security” section for certifications obtained for information security.

Certifications held by Yamato Group companies
Certification

Company nameYamato Packing Technology Institute Co., Ltd.

ISO9001Year
obtained
2008

Business Management Division

2008

Operation Center

2008

Research and Development Office

2008

Kanto No.1 Branch

2008

Yamato System Development Co., Ltd.
Regional Sales Division
Chiba Logistics System Center, Tokyo BranchTokyo SLC, Tokyo BranchShin-Tokyo Logistics System Center, Tokyo Branch
Chubu Logistics System Center, Chubu Branch
Chubu Logistics System Center (Inazawa), Chubu
BranchOsaka Logistics System Center, Kansai Branch

JIS Q 9001:2008/ISO 9001:2008

1997
2008
2005
2007
2007
2007

Osaka Logistics System Center (Higashi Yodogawa),
Kansai Branch

2007

Osaka Minato Logistics System Center, Kansai
Branch

2011

Haneda On-demand Center, Tokyo Branch

2014

Haneda On-demand Center (Oi Office), Tokyo
Branch

2005

Haneda On-demand Center (Oi Office #2 Center),
Tokyo Branch

2005

System Solutions Company

2003

Shin-Tokyo IDC

2006

Yamato Logistics Co., Ltd.

2006

Medical Logistics Company
Kanagawa Medical Center
Yamato Packing Technology Institute Co., Ltd.

ISO14001

ISO13485

2008

Business Management Division

2008

Operation Center

2008

Packaging Solutions Business Division

2008

Research and Development Office

2008

Kanto No.1 Branch

2008

Yamato Logistics Co., Ltd.

2009

Medical Logistics Company
Kanagawa Medical Center-8-

| CSR Management |Excellent Safe Driving Business
Certification (G-Mark)

Kobe Yamato Transport Co., Ltd.

2012

Okinawa Yamato Transport Co., Ltd.

2015

Yamato Transport Co., Ltd.: obtained by 2,402 offices as ofMarch 31, 2014
Yamato Multi Charter Co., Ltd.: obtained by all offices

2016

Yamato Box Charter Co., Ltd.: obtained by 40 offices as of March
31, 2016

2016

Yamato Global Express Co., Ltd.: obtained by 58 offices as of
May 31, 2015

2015

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

- 10 -

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

Ensuring Air cargosafetySafety measures
matched to local
traffic conditions

Assistance withproduct recalls
Prevention ofoccupational
accidents
Home security
Mental health care

Truck, bus and othervehicle management
and maintenancesolutions

Securing information
security for products
and services* Sustainability Reporting Guidelines: A set of international guidelines that apply to the creation of CSR/sustainability reports.
Operations with significant potential or actual negative impacts on local communities
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related
fatalities, by region and by gender- 11 -

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

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

Confidential
document
recycling
service
Energy-saving
initiatives
Utilization ofnatural energy

Developing
eco-friendly
packagingmaterials

Reusing andrecycling
unwanted
articlesRecycling used
tires

Reusingrainwater

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

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

Reduction of energy consumption
Direct greenhouse gas (GHG) emissions (Scope 1)
Greenhouse gas (GHG) emissions intensity- 12 -

| Our Major Initiatives |Improving quality and customer satisfaction
Initiatives to improve service quality

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

Work-Life Balance

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

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

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

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

Support for economic independence for people with disabilities
Initiatives by the Yamato Welfare Foundation
Operation of "Swan Bakery" stores, where people with disabilities work.
Donations by employees* Sustainability Reporting Guidelines: A set of international guidelines that apply to the creation of CSR/sustainability reports.
Return to work and retention rates after parental leave, by gender
Programs for skills management and lifelong learning that support the continued employability of employees andassist them in managing career endings
Percentage of operations with implemented local community engagement, impact assessments, and development
programs- 13 -

| Supporting peopleʼs daily lives using community hubs |Revitalizing the

Launching a

Providing

As a new model

Voice oflocal
community

number ofservies that

employment
opportunties tocase forcommunity

Stakeholders
Voice of anwith thelifestyleaddress
community

local residents

revitalization in
urban areas

Employeesupport service

issues- 14 -

| Supporting peopleʼs daily lives using community hubs |Revitalizing the local community with the lifestyle support service
On April 28, 2016, Yamato Group launched the lifestyle support service with the aim of enriching the lives ofpeople living in Tokyo’s Tama New Town area.
Tama New Town is a vast area covering some 2,884 hectares spreading across Tama City, Hachioji City, Inagi
City and Machida City in Tokyo. It represents Japan’s largest new town developed during the period of rapid
economic growth to increase the number of people living in urban areas.
Currently, Tama New Town has a population of around 200,000. However, the mix of residents has changed
dramatically, caused by the graying of those who first moved into the area in the 1970s and the exodus ofyounger generations to attend school, find employment or get married. Today, about 50 years after it was firstdeveloped, the Tama New Town area needs to redefine itself by creating an environment where the elderly
can continue to live and making itself attractive to draw in new younger generations.
Yamato Group is working on Project G, which aims to solve community issues through its businesses andthrough partnerships with local governments and other companies. As part of this project, we work torevitalize local industries by expanding the sales channels of local specialty items and to provide living
assistance to local residents in the form of shopping support and wellness checks.
Our new lifestyle support service provided in Tama New Town represents a compilation of the knowledge andknow-how of Yamato Group, the Urban Renaissance Agency, and the City of Tama, which is in turn used to
improve the convenience of residents, encourage inflows of young people raising children, and promote a
community where multiple generations are linked together. The ultimate goal is to make the mature Tama
New Town a more appealing community for all.

- 15 -

| Supporting peopleʼs daily lives using community hubs |Launching a number of servies that address community issues
At Neko Support Stations newly set up within housing complexes as a community hub, Neko Support Cafésessions are held with the assistance of Comprehensive Regional Support Centers. Going forward, events
targeting younger generations raising children will be held to further revitalize local communities.
The lifestyle support service offers a host of services that aid the lifestyle of local residents with the help of thelocal government and private-sector companies.
For example, Yamato Transport provides consolidated deliveries that include parcels of other providers, so
residents can receive parcels from many different providers at the same time. This will reduce the number ofdelivery trucks in the community and result in lessening environmental impacts and reducing traffic accidents.
The shopping support service allows residents to order goods by telephone, over the Internet, and in-person
at a “Neko Support Station” and have goods delivered from retailers to their home. We have seen a steadyincrease in users of this service because many people felt inconvenienced by shopping since few
supermarkets are located nearby. The household chore assistance service has seen an increase in inquiries
from local residents and based on feedback received we plan on expanding the types of services offered.

- 16 -

| Supporting peopleʼs daily lives using community hubs |Providing employment opportunties to local residents
Currently, Neko Support Stations located in Tama City have been set up within the Nagayama and Kaidori
complexes. They employ a combined staff of 13 people. Both locations plan on hiring more local residents toprovide services, with the goal of providing employment opportunities in the local community.
Also, some of the tasks can be performed by the elderly, so we hope to make Neko Support Stations a placeof employment for elderly living in the community, too.

As a new model case for community revitalization in urban areas
These services were launched with the hope of solving social issues in suburban areas, but during the launch
process, the Urban Renaissance Agency and the City of Tama also requested that we create services for not
only the elderly, but younger generations, too, and that we help to establish an environment that encourages
interaction between many different generations. Since commencing services, we have also received various
feedbacks from users and community organizations. Some of our employees have received advice directly,
such as decorating the office more to make it inviting and bringing tables to the front to encourage greater- 17 -

| Supporting peopleʼs daily lives using community hubs |interaction. We are now working to make services more convenient, pleasant and easy for residents, while
incorporating their feedback. First, we are handing out leaflets and opening facilities to local community
groups to raise the visibility of the Neko Support Station among local residents.
Yamato Group will continue to work closely with the Urban Renaissance Agency, City of Tama and local
residents so that its initiatives in Tama New Town serve as a new model case for the future revitalization ofother urban areas.

Voice of Stakeholders

Looking forward to future proposals from new vantage points
One of the missions of the Urban Renaissance Agency is to form
mixed communties where multiple generations interact and help one
another. We feel that the lifestyle support service has the potential toaid these efforts. Since being asked for assistance by the YamatoGroup in spring 2015, we have set up a council for fostering interaction
between local groups already working on community revitalization in
Tama New Town and worked toward gaining the understanding andcooperation of the local community. As a result, we believe the service
is meeting the expectations of people inside and outside complexes,
as the opening ceremony was attended by a large number of people.
I look forward to the Yamato Group presenting proposals for services

Yuichi Oka
Director General of East
Japan Rental Housing OfficeUrban Renaissance Agency

that improve the quality of life from all new vantage points as a partnerin our goal of living and community development that allows manydifferent generations to live along side one another in a vibrantcommunity.

A progressive model for new towns across JapanThe Nagayama and Kaidori complexes were among the first in Tama
New Town to be settled, and so they face the common challenges ofimproving access to shopping and creating places and opportunties forresident interaction, given the drop in the number of stores and thegraying of the local population. The lifestyle support service, which
combines logistics efficiency with living support, is expected to connect
these facilities and local residents and help to resolve these common
challenges. The opening of the Neko Support Stations have yielded
great success in providing a place to share information aboutmunicipal services, provide employment opportunities to local
residents, and offer spaces as a community hub.
Going forward, we will make efforts to improve initiatives and raise
visibility in an effort to provide a progressive model for new towns
across Japan.
In addition, the City of Tama has concluded agreements with Yamato- 18 -

Shunichi Iihashi
Manager in Charge of Urban
PolicyPlanning & Policy Department
Tama City

| Supporting peopleʼs daily lives using community hubs |Transport to watch over the elderly and provide information aboutdamages to roads. We expect the Yamato Group to continiue tocontribute its unique know-how to the city moving forward.
Voice of an Employee

Addressing individual customer issues to make services a fixture in the local
community
The lifestyle support service represents a new initiative to provide
complex support services for lifestyles in suburban areas where
population aging is becoming a major issue, through partnerships withlocal people and our TA-Q-BIN network. Since launching the service inApril 28, 2016, every day has been filled with trial and error to pleasecustomers in the community. The Neko Support Station, which aims to
be a community hub, has received a number of consultations andrequests regarding household chores and shopping from customers inperson, which makes me feel keenly aware of the high expectations
placed in this service. In order to continually provide services neededby the local community, first we will focus on listening to customer
feedback and providing services that meet people’s needs to please allof our customers. In turn, it is our hope that as a result this service willserve as a model for other forms of living support in urban areas.

- 19 -

Keisuke Watanabe
Branch Manager
Neko Support Tama New
Town BranchWestern Tokyo District Branch
Yamato Transport Co., Ltd.

| Watching over the elderly with our TA-Q-BIN network |Providing greater

Efforts to watch over

Also launched

Initiatives to watch

peace of mind toelderly living alone

the elderly beganwith one employee’s

services prioritizing
support for theover the elderly are
spreading acrossin their own
communities

experience

shopping
disadvantaged

Japan- 20 -

| Watching over the elderly with our TA-Q-BIN network |Providing greater peace of mind to elderly living alone in their own communities
With the birthrate declining and more people moving to urban areas, Japan is expected to see an increase indepopulated areas and an aging population. In recent years, the problem of elderly dying alone in their home
has become a social issue. To prevent the elderly without relatives from dying alone, more than one person
needs to watch over the elderly living alone. However, in more and more cases, there is a lack of younger
generations, local governments and social workers who can fulfill this role and care for the elderly.
As a result, Yamato Transport works on watching over elderly utilizing its extensive nationwide TA-Q-BIN
network in concert with local governments. This initiative, which emphasizes watching over elderly in person,
is being expanded nationwide while undergoing trials and errors during the process of creating a sustainablemechanism.

Efforts to watch over the elderly began with one employee’s experience
In September 2010, our very first initiative to watch over the elderly began in Nishiwaga Town, Iwate
Prefecture.
The idea for this service originated from a Sales Driver (SD) who worked in Iwate Prefecture. One of his- 21 -

| Watching over the elderly with our TA-Q-BIN network |customers who he often saw along his delivery route died alone, which led the SD to come up with a concept
for watching over the elderly using Yamato Transport’s network. Amidst a number of trials and errors
conducted during the commercialization process, the Nishiwaga Town Council of Social Welfare requested
this service be rolled out in small depopulated communities and, given strong demand for assistance withshopping, we came up with the Magokoro TA-Q-BIN service, which combines watch over services withshopping assistance.
The Magokoro TA-Q-BIN service allows elderly who find it difficult to go shopping to order products bytelephone, with these products supplied by a local supermarket. Afterwards, a Yamato Transport SD delivers
their order and also checks on their health and if they are okay, reporting their findings back to the Social
Welfare Council. This home delivery service addresses the two issues facing the elderly living alone of dying
alone and being shopping disadvantaged with a single service.

Also launched services prioritizing support for the shopping disadvantaged
Another model case combining shopping support with watch over services for the elderly can be found in
Otoyo Town, Kochi Prefecture. With more than 50% of its population elderly, Otoyo Town is considered amarginalized community. Depending on where they live in the town, residents face the challenge of having totravel long distances for their daily shopping because of the town’s geographic location where individual
communities dot an expansive mountainous area and a declining number of stores due to depopulation.
Elderly who cannot drive face a particularly difficult burden.
In November 2012, we launched the Otoyo Delivery Service for all residents of the town after receiving
consultations from local stores. Residents simply place an order with participating stores by telephone or fax,
the store then packs the order and a Yamato Transport SD delivers it. Additionally, SD report to the town
government or the fire department if they find that an elderly customer is not feeling well at the time ofdelivery, adding an element of watching over the elderly to this solution.

- 22 -

| Watching over the elderly with our TA-Q-BIN network |Initiatives to watch over the elderly are spreading across Japan
Currently, Yamato Transport offers watch over services for the elderly and shopping support utilizing its
TA-Q-BIN network in various parts of Japan. In order to sustain these initiatives over the long term, it isessential that we alleviate the burden placed on SD in the field and participating local governments.
One example is the watch over support service for the elderly in Kuroishi City, Aomori Prefecture. This service
involves Yamato Transport delivering publications created by the city government for elderly living alone oncea month as TA-Q-BIN, with the SD checking to see if the eldelry are home and their health condition, reporting
the results back to the city. Using this mechanism, we are now able to help the city find elderly in need of carewith a low cost and effortless service. Similar initiatives are now underway in Fukaura Town, Aomori
Prefecture, Himi City, Toyama Prefecture, and Nishiwaki City, Hyogo Prefecture.
* For more about the watch over service offered in Fukaura Town, Aomori Prefecture, please see“Yamato Group Corporate
Social Responsibility Report 2015 (Web edition)”.

- 23 -

| Revitalizing local economies by expanding sales channel with International Cool TA-Q-BIN |Helping increase sales ofInternational Cool TA-Q-BIN

Helping expand sales

highly competitive Japanese
agricultural and marine

helping to support
communities far away fromchannels throughagreements concluded withproduce in international
markets

the Greater Tokyo
Metropolitan Area

local governments acrossJapan- 24 -

| Revitalizing local economies by expanding sales channel with International Cool TA-Q-BIN |Helping increase sales of highly competitive Japanese agricultural and marine
produce in international markets
In recent years, there has been growing demand in Asian markets for Japanese agricultural and marine
products because they are prized as safe foods. The Government of Japan, too, is promoting thedevelopment of sixth order industries and expansion of exports of agricultural and marine products given thetrend for greater free trade as exhibited in the TPP* and other agreements.
However, there are very few cold international logistics services that transport small parcels in small lots, andas a result there has been demand for a mechanism to transport agricultural and marine products in a mannerthat ensures freshness is maintained. There were also issues facing producers who wanted to expand theirsales channels into overseas markets.
To address these issues, Yamato Group launched the world’s first international integrated small-lot coldtransport service for Hong Kong called International Cool TA-Q-BIN. Since then, we have expanded service
coverage to include Taiwan, Singapore, and Malaysia.
* Trans-Pacific PartnershipTransport Route between Aomori-Hong Kong and Number of Days in Transit- 25 -

| Revitalizing local economies by expanding sales channel with International Cool TA-Q-BIN |International Cool TA-Q-BIN helping to support communities far away from theGreater Tokyo Metropolitan Area
Communities located far from the major consumption area of the Greater Tokyo Metropolitan Area and otherurban locations have felt a strong sense of the challenges in term of expanding sales channels for theiragricultural and marine produce. One such community is Aomori Prefecture. The prefecture is a major sourceof agricultural and marine produce. It boasts Japan’s largest yield of apples, garlic, greater burdock andnagaimo (Chinese yam), and it is also a major source of seafood such as flounder, scallops and sea urchin.
Conventional logistics systems limited the areas that these items could be sent to by the next day.
With this in mind, Yamato Transport concluded an agreement with Aomori Prefecture in July 2014 to build an
integrated transport platform for Aomori Prefecture. This marked the start of our efforts to deliver speedytransport solutions for the prefecture’s agricultural and marine produce.
First, we established a new arterial route between Aomori and Sendai separately from our ordinary TA-Q-BIN
arterial transport routes. For areas from the Chubu to Kyushu regions where it was difficult to offer next-day
deliveries, we used the air transport network linking Sendai with Osaka and then transported items by groundfrom Osaka. As a result, the percentage of parcels with destinations in Japan that can be delivered by thenext day in the morning increased significantly from 7.5% to 84.7%. Also, we are now able to deliver parcels
as soon as the next day to Hong Kong and Taiwan by sending them from Osaka to Okinawa. As a result, wehave created a distribution channel that has expanded sales channels for these items, as high end
restaurants not only in Japan, but also overseas have selected ingredients from Aomori Prefecture to use in
their menus.

- 26 -

| Revitalizing local economies by expanding sales channel with International Cool TA-Q-BIN |Helping expand sales channels through agreements concluded with local
governments across Japan
Efforts to aid in the expansion of sales channels for local products have spread to every corner of Japan as ofMarch 2016, including Kumamoto Prefecture, Ehime Prefecture, Miyazaki Prefecture, Mie Prefecture,
Nagasaki Prefecture, Akita Prefecture and Iwate Prefecture. In Nagasaki Prefecture, we continue to provide
proposals that solve the transport needs of individual communities, such as facilitating transport from remoteislands in particular. We are also helping the expansion of sales opportunities for local products from various
angles, including holding business meetings with overseas buyers, helping carry out export procedures, andestablishing e-commerce sites online.

- 27 -

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

- 28 -

| Safety |Results of Initiatives in Fiscal 2015
Initiatives

Formulation ofsafety plans

Achievements and Results

Plans to assuretransport safety

7 major accidents (7 major traffic accidents, 0 major occupational
accidents)
The Yamato Group aims to reduce traffic accidents to zero. Every year,
Yamato Transport (J) formulates a plan to assure transport safety, anddisplays posters providing information on safety goals and initiatives at all
offices.
Safety Experts stationed nationwide: 301
At District Branch, Yamato Transport Co. Ltd. has stationed safety training
directors. These experts in safety measures provide safety instruction to
Sales Drivers.

Training of Sales
Drivers

Education to
improve skills

Sales Drivers who have received ride-along instruction from Safety
Experts: 38,432
Trainees who have taken classes from safety expert lecturers: 20,303
At all 69 District Branches in Japan, Yamato Transport (J) appoints three
instructors with expert knowledge, one in each of three skills: laws andregulations, practical traffic safety, and health and safety.
Safety information magazine and safety calendar
Yamato Transport (J) publishes the safety information magazine "Safety First"
with safe driving tips and other information for Sales drivers, the "Driver's
Safety Handbook" carried by all Sales Drivers, and the "Safety Calendar" thataids in training to improve risk sensitivity.

- 29 -

| Safety |Zero Traffic
Accidents Campaign

Implementation of the Zero Traffic Accidents Campaign
The Yamato Group implements the Zero Traffic Accidents Campaign every
spring and autumn. Yamato Transport (J), which has conducted the campaign
continually since 1970, conducted the autumn fiscal 2015 Zero Traffic
Accidents Campaign with the aim of achieving zero accidents under thetheme of safety at intersections (both off-street locations* and whenentering/leaving the road), and ensuring driving considerate of children,
bicycle riders, the elderly, and motorbikers.
*

Promotion ofsafety awareness
among
employees

Not only parking lots, but also onsite at customer facilities

Long-Running No-Accident Commendation awardees: 9,361
Every year, Yamato Transport (J), Yamato Home Convenience, Yamato
Global Express, and Yamato Multi Charter commend Sales Drivers who excel
in safe driving and who remain accident-free.
Commendations andcontests

Toward theachievement of safe
work environments

Yamato Transport Nationwide Safety MeetAt the fifth safety meet held by Yamato Transport (J), 56 winners of meets at
branches nationwide, at Okinawa Yamato Transport, and at Yamato Global
Express competed on safety consciousness and driving technique. From thistime, the female drivers category and driving management category were
newly created.
In addition to this, Employees of Yamato Multi Charter Co., Ltd. actively
participated in outside drivers’ contests.
Initiatives to prevent occupational accidents
The Yamato Group performs internal sharing of information on near-missincidents that can lead to major accidents, and formulates and carries out
measures to achieve safe workplace environments. In addition, all groupcompanies implement measures such as forklift safety seminars and Safety
Week, which aims to improve safety consciousness.
Vehicle maintenance plant Superworks: 23 sites
Superworks are Yamato Autoworks' 24-hour, 365-day maintenance plantsthat feature greatly enhanced work efficiency. Of the company's 73 plants
nationwide, 23 have been designated Superworks.

Vehicle maintenance

Maintenance ofequipment andsafety systems

Mechanics: About 940 (including 590 with vehicle inspector
qualifications)
Yamato Autoworks actively supports its mechanics' acquisition of vehicle
inspector qualifications in addition to normal mechanic qualifications. This
enables the mechanics to perform completion inspections and confirm thatvehicles conform to safety standards following maintenance.
Enforcing driver's license checks through the adoption of IT systems
In addition to visual confirmation of licenses, Yamato Transport (J) uses
portable information devices to check IC card licenses, providing support for

Adoption ofequipment and tools

Overseas rolloutof measures toassure safety

Safety measures
matched to local
traffic conditions

operation management work and enforcing compliance through IT.
Adopting See-T Navi in delivery vehicles to support safe and Earthfriendly driving
Yamato Transport's proprietary See-T Navi onboard vehicle system supports
safe driving with features that include digitized delivery route maps.
Safety measures matched to local traffic conditions
Our company holds a Drivers' Contest safety meet in Singapore andMalaysia, and also participates in safety events.

- 30 -

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

Results of Initiatives in Fiscal 2015
Initiatives

Achievements and Results

Every individual employee will drive at
all times in an environmentallyfriendly manner.

Eco in transport

We strive to reduce gas emissions,such as C02, by introducing
low-emission vehicles and conducting
pickup and delivery using
hand-pushed trolleys and New threewheelers (electric bicycle with a
trailer).

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

Adopting our unique safety and ecologicalnavigation system in approximately acumulative 32,000 delivery trucks
The unique See-T vehicular system of Yamato
Transport (J) boosts the precision of eco-driving
through visualization of fuel and other driving
conditions.
Adoption of about 5,000 new three-wheelers(electric bicycles with trailers)
Yamato Transport (J) is undertaking expansion ofdeliveries that do not use motor vehicles.
Adoption of about 26,000 low-emission vehicles(50.9% of all Yamato Group vehicles)
In our pursuit of delivery that avoids the use ofvehicles whenever possible, the Yamato Group ismaking use of new three-wheelers andhand-pushed trolleys. For vehicles that are
required, we are making a shift to low-emission
vehicles.
Total volume handled by rail and marinetransportation: About 450,000 tons
Reduction of environmental impacts incooperation with a tram company
Approx. 1,800 tons of CO2 emissions were
eliminated by utilizing rail transport on the- 31 -

| Environment |Shinkansen from Kyushu to Kanto. This
achievement was recognized with the Top Prize for
Excellent Modal Shift Businesses at the 13th Modal
Shift Initiative Awards organized by the Japan
Association for Logistics and Transport.

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

Eco in facilities

We utilize renewable energy sources
and promote the conservation ofenergy at our facilities.

Displaying of Environmental Protection
Declaration posters and Indoor temperature
setting stickers in all Yamato Group offices
We are working to conserve energy by enforcing"Cool Biz" light summer wear and by reducing
unneeded lighting.
Adoption of the latest environmental technology
at Haneda Chronogate
Incorporating the latest environmental technologythat makes use of natural energy we achieved a
CO2 reduction of 46% compared to conventional
facilities. Also, we were able to recycle 100% of
unnecessary items arising from facilites.

We strive to reduce waste bypromoting green purchasing,recycling and a paperless office.

Green purchasing ratio: 83.3% (roughly thesame as the fiscal 2013)
We strive to select and purchase items with theleast impact on the environment.

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

Development and promotion of environmentallyfriendly packaging materials
The Yamato Packaging Technology Institute hasdeveloped packaging material that does not require
package cushioning, and packaging material thatcan be easily separated from other waste.

We propose work efficiency solutions
and contribute to customers' energy
conservation.

Provision of services that leverage information
communication technology (ICT)We provide joint transport services for products,
joint usage-type online statement notification
services, and other services to support more
efficient work by customers in a variety ofindustries.

As a member of local communities,
we participate in community
environmental conservation
initiatives.

Active participation in local cleanup campaigns

We hold environment classes toconvey the importance of theenvironment.

We hosted the Kuroneko Yamato Environmental
Class 228 times during the year, with approx.
15,820 children participating.

Eco in products

Eco with local communities- 32 -

| Society |Results of Initiatives in Fiscal 2015
Initiatives

Customers

Achievements and Results

Improvement of response
quality

Implementation of customer service response competition (forcustomer Service Center operators, Guest Operators and Sales
Drivers)
We evaluate operators who are in daily contact with customers, awarding
those who score well in screening of response skills (facial expressions,conduct, way of speaking, diction etc.), product knowledge, andcommunication skills.

Education / training andcareer development

Participation in outside contest
Four employees participated in the nationwide Telephone Customer
Service Contest sponsored by the Japan Telecom Users Association and
one participant from the Fukuoka Call Center was runner up.
600 persons took childcare leave / 474 persons worked shorter hours
for childcare
At Yamato Transport in Japan (Yamato Transport (J)), employees cantake childcare leave until the child become 14 months old, if their spouses
are on childcare leave and shorter working hours for childcare can betaken until the child finishes fourth grade at elementary school.

Work-Life Balance

Employees

We are certified by Japan's Ministry of Health, Labour and Welfare as
a company that actively supports the balance between work andfamily life.
As of April 2015, four of our companies have received the abovecertification:
Yamato Management Service (2015), Yamato Transport (J) (2014),
Yamato Logistics (2013), Yamato System Development (2011)- 33 -

| Society |Respect for diversity

Promotion of programs for active engagement of female employees
We held a career design seminar for female employees at BIZ
Logiformation to boost employee motivation through opportunities to learn
the basics of career design and to consider career paths.
In 2015, skill improvement training was held for all female executives inan effort to enhance the management skills of participants.
Employment of 2,317 persons with disabilities (Employment rate:
2.19%)
We will continue to create a barrier-free workplaces conductive to work bypeople with disabilities.

Partners

Fair and unbiased trading /Collaboration for safety andimproving service quality

Appropriate and fair
information disclosure /Shareholders
Enhancement ofcommunication

Communication with about 220,000 TA-Q-BIN service partners
Our Sales Drivers make daily visits to service partners. We also issue theinformation magazine "Kuroneko-Dayori" to general service partners suchas liquor and rice shops.
We publish an annual report and a booklet for shareholders todisclose information.
Briefings for analysts held 4 times, and visiting institutional
investors for briefing in North America / Europe / Asia
We conduct briefings for analysts 4 times a year, as well as overseas
briefings for institutional investors in North America, Europe, and Asia.
Music TA-Q-BIN "Kuroneko Family Concert" held 9 times per year,with attendance by 15,008 people.
Cumulative 302 concerts with a total attendance of about 440,000 people.
"10th Yamato Transport Business Seminar for High School Students"

Social education support

Participation by 19 schools and 95 persons in fiscal 2015.
Cumulative participation by 82 schools and 476 persons (conducted
every year since 2006)
The program received the Examination Committee Incentive Prize in theAwards for Companies Promoting Youth Experience Activities by the
Ministry of Education, Culture, Sports, Science and Technology.
"Children's Traffic Safety Workshop" held 1,983 times per year, withmore than 210,000 participants.
Cumulative 26,117 times with participation by a cumulative 2,802,852
persons (held every year since 2005)
Kuroneko Yamato Environmental Class
204 times per year with participation by about 15,820 people
Cumulative 2,993 times with participation by a cumulative 222,743
persons (held every year since 2005)

Local people
Promotion of CSV in
partnership with local
communities

Lifestyle support, sales promotion support, tourism support etc.
Total number of cases: 1,293 (495 cases in operation)
Number of agreements: 276 (as of the end of April 2016)
Through our main business, we make efforts to create value that can beshared by enterprises and society.

- 34 -

| Society |Support for the creation of workplaces in which people withdisabilities can be economically independent
Through the Yamato Welfare Foundation, we implemented the "Bridge toDreams Project (Yume E No Kakehashi Project)" to assist the preparationof "economic independence".

Support for economic
independence for people withdisabilities

Arrangement of Kuroneko direct mail delivery work for 1,651 persons
with disabilities
Nationwide operation of 29 "Swan Bakery" stores employing people
with disabilities.
Swan operates three directly managed Swan Bakery stores and 24
franchise stores.
Fund raised through the Natsu No Kampa (summer donation)
program: 7,316 million yen
About 200,000 employees in the Yamato Group raised funds for the
Yamato Welfare Foundation and NPO Ashinaga.

- 35 -

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

Corporate Governance
Making the securing of sound management, and the achievement of prompt andaccurate decision-making and business execution, our basic policy
Yamato Holdings, a pure holding company, and its group companies make the securing of soundmanagement, and the achievement of prompt and accurate decision-making and business execution, thebasic policies upon which we work to strengthen corporate governance.
Yamato Holdings has established the Board of Directors, the Management Committee, and the Executive
Conference as business management organizations involved in group-wide managerial decision-making,execution, and supervision, creating a structure to carry out prompt and proper decision-making on importantmatters.
The Board of Directors consists of 5 directors (including 2 outside directors) who serve one-year terms, during
which the directors clarify the responsibilities of management for the fiscal year. The Audit & Supervisory
Board consists of 2 full-time Audit & Supervisory Board members and 2 outside Audit & Supervisory Board
members, who audit the performance of directors’ duties through actions including attendance at Board of
Directors meetings and other important meetings. In addition, the auditors periodically hold Group Auditors’
Liaison Meetings to discuss auditing policy and methods with full-time Audit & Supervisory Board members
from major group companies, with the aim of enhancing auditing functions across the Group. All outside
directors and outside Audit & Supervisory Board members are independent officers pursuant to Tokyo Stock
Exchange Regulations, and their names are registered at the Tokyo Stock Exchange.

- 36 -

| Governance |Corporate governance promotion framework

Compliance
Strengthening internal control for the Group overall
The Yamato Group has established an internal control system in order to promote sound corporate culture in
the group a whole, and to enable employees to perform their duties effectively and efficiently without any
misbehavior or mistake.
Yamato Holdings has stipulated its basic policy on the internal control system in accordance with theCompanies Act, and each group company is working on strengthening internal controls. In addition, in orderto respond to the internal control report system pursuant to the Financial Instruments and Exchange Act,
which went into effect in April 2008, we created a post of internal control manager in major group companies,
and have made efforts to review business rules and standardize operations. We have also constructed aframework by which the section in charge of audits in Yamato Holdings and the sections in charge of internal
control in major group companies check whether work is being conducted effectively in accordance with rules,
and seek immediate remediation of any deviations. Internal control involving financial reporting by the YamatoGroup was found to be valid as of March 31, 2016, with a report submitted to the Kanto Local Finance
Bureau.
In accordance with the enactment of the Act on the Partial Revision of the Companies Act and the Ministerial
Ordinance on the Partial Revision of the Ordinance for Enforcement of the Companies Act, Etc. on May 1,
2015, within our basic policy concerning the creation of internal control systems we revised frameworks for
ensuring the properness of work by the Yamato Group and frameworks related to auditing, in order to conformwith our current situation. We revised these to incorporate specific and clear expressions, in line with thestatutory revisions.
- 37 -

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

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

- 38 -

| Governance |We have also set up a Corporate Fraud Reporting Desk, Compliance Hotline and a Suggestion Box as pointsof contact in our whistle-blowing system, which enable us to directly obtain information on risks in thecompany by means of notification and consultation by phone or e-mail. They contribute to prevention ofcompliance violations.

Business Continuity Plan (BCP)
Leveraging our experience from past earthquakes to effect improvements that will
enable appropriate response to major earthquakes
The Yamato Group offers the TA-Q-BIN service as social infrastructure, and is expected to keep offering thesteady service even under unforeseeable circumstances. In the wake of the emergence of novel influenza
strain (H1N1) in May 2009, we formulated a business continuity plan (BCP).
Based on this BCP, formulated according to response guidelines focusing on maximum priority on human life
and on continuation of the TA-Q-BIN business, we addressed the problems caused by the Great East Japan
Earthquake (2011) and the Kumamoto Earthquake (2016). Our aim is to prepare for an earthquake occurring
directly beneath the Tokyo Metropolitan Area and an earthquake along the Nankai Trough, which are likely tooccur in the future and are expected to cause large-scale damage.

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

- 39 -

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

Year ofacquisition

Company nameYamato System Development Co., Ltd.

1999

Yamato Financial Co., Ltd.

2006

Yamato Contact Service Co., Ltd.

JISQ15001(Privacymark System)

Head Office

2007

Tokyo Call Center

2015

Saitama Call Center2007

Miyakonojo Intelligent Contact Center

2010

Wakayama Call Center

2012

Tottori Intelligent Contact Center

2013

Tome Contact Center

2013

Kanto Mother Center

2014

Kansai Mother Center

2015

Yamato Web Solutions Co., Ltd.

2007

Yamato Logistics Co., Ltd.

2010

Yamato Multi-maintenance Solutions Co., Ltd.

2010

Yamato Management Service Co., Ltd.

2011

Yamato Transport Co., Ltd.
Headquarters

2015

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

2004

Osaka IDC

2002

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

2009

Credit card terminal installation application form acceptance center operation

2012

CAT joint usage system

2013

Sorting and sending of account transfer request documents

2013

Member contact service

2014

Joint usage-type online statement notification service

2014

Proxy service for emergency invalidation procurement

2014

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

2015

Yamato Packing Service Co., Ltd.
ISO27001

Head office (human resources, general affairs, planning, information)

2005

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

2005

Yamato Contact Service Co., Ltd.
Head Office

2006

Tokyo Call Center

2015

Saitama Call Center2007

Miyakonojo Intelligent Contact Center

2010

Wakayama Call Center

2012

Tottori Intelligent Contact Center

2013

Tome Call Center

2013

Kanto Mother Center

2014

Kansai Mother Center2015- 40 -

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

2009

Yamato Logistics Co., Ltd.
Confidential Document Secure Solutions Division
ISO20000

Yamato System Development Co., Ltd.

2016
2006

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

Credit card settlement service

2006

Web billing service

2011

Yamato System Development Co., Ltd.

- 41 -

2004

| Awards & Recognition |Year andmonth
receivedAwardsRecognized by

Recipient

June

Logistics Environment
Conservation Award,
17th Logistics Environment Awards

Japan Association for Logistics
and Transport

June

Minister of Land, Infrastructure,
Transport and Tourism Award, 1st
Nihon Service Awards

Service Productivity &International Cool TA-Q-BIN
Innovation for Growth (SPRING)

February

Low Carbon Cup 2015
Special Mention Judges Award

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

February

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

Yamato Group Corporate Social
Ministry of the Environment andResponsibility Report 2014
the Global Environmental Forum(highlights version)

February

FY 2014 Awards for Companies
Supporting Youth Learning
Activities Honorable Mention
Judges Award

Ministry of Education, Culture,
Sports, Science, andTechnology

Yamato Transport Co., Ltd.

January

18th Environmental Management
Survey2nd in Transportation Category

Nikkei Inc.

Yamato Holdings Co., Ltd.

December

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

Yamato Transport Co., Ltd.

November

3rd Healthy Life Expectancy
AwardsExcellence Award in the
Companies Category (awarded by
the Director-General of the MHLW
Health Service Bureau)

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

Yamato Group Health InsuranceSociety

November

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

Ministry of Economy, Trade andIndustry

Yamato Multi-Maintenance Solutions
Co., Ltd.

September

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

Japan Society of Health Support Yamato Group Health Insurance
Science
Society

July

2nd Platinum Awards
Platinum Awards Steering
Grand Prize and Minister of Internal Committee (Platinum Concept
Affairs and Communications Award Network)

Yamato Holdings Co., Ltd.

May

15th Logistics Environment Awards

Japan Association for Logistics
and Transport

Yamato Transport Co., Ltd.

2016
Yamato Transport Co., Ltd.

2015

Yamato Holdings Co., Ltd.

2014

- 42 -

| Third-Party Opinion |Masatoshi Tamamura
Professor
Faculty of Policy Management
Keio University

Orientation of this Third-Party Opinion and Points to Note
This Third-Party Opinion was written based on the author’s interviews with relevant parties inside and outside
the company, his field research on Project G in Iwate Prefecture and Aomori Prefecture conducted in Juneand August 2016, as well as assessment of the Yamato Group Corporate Social Responsibility Report 2016*.
* The Yamato Group Corporate Social Responsibility Report 2016 covers the period of fiscal 2015 from April 2015 to March
2016, including information about activities before or after fiscal 2015. The report is further published in both an abridged
highlights version (booklet) and full online report version (website). This Third-Party Opinion covers both formats.
In writing this Third-Party Opinion, the author also referred to the Yamato Group’s past corporate social responsibility
reports published on its website in order to review the company’s PDCA cycle and check trends in its approach to CSR (theEnvironmental Report for fiscal 2000 to fiscal 2003, the Environmental Sustainability Report for fiscal 2004, and the
Corporate Social Responsibility Report for fiscal 2005 onward).

This Third-Party Opinion examines the Yamato Group’s “Approach to CSR: System for Defining and
Implementing Corporate Stance/Materiality” and “CSR Report: Objectivity and Ease of Understanding” asdescribed in the Yamato Group Corporate Social Responsibility Report 2016 using an independent
perspective from the Yamato Group based on the author’s expertise. In turn, this Third-Party Opinion provides
the author’s views broken down by areas of excellence and areas in need of future improvement.

- 43 -

| Third-Party Opinion |1. Approach to CSR: Corporate Attitude, Contents of Implementation,
Defining Matters of Weight, System
Areas of Excellence
The Yamato Group Corporate Social Responsibility Report 2016 states “based on its corporate philosophy,
CSR represents the very essence of management.”
The company’s fundamental approach underpinning its corporate philosophy is indicated as the company
precepts established in 1931 that contain the company’s founding spirit. In particular, the first precept states,“We ‘all’ represent the company.” The company’s website explains that employees identify themselves as anintegral part of the Yamato Group and that the company highly values this spirit where corporate management
represents a combination of the strengths of each and every employee.
Employees, who individually have contact with society, maintain a stance closely imbued by the precept “We‘all’ represent the company.” Management policy dictates that employees play an integral role in thecompany’s corporate social responsibilities, which can be viewed as a strength, I believe.
In actuality, the Yamato Group’s employees have developed and established various services to addresssocial issues based directly on customer feedback and their experience on the frontlines, and as a result thecompany itself fulfills its corporate social responsibilities as a company that forms an important piece of social
infrastructure. As a widely known example, I would like to cite TA-Q-BIN, a small parcel delivery service
empire established by the company forty years ago so that consumers could know when a parcel would be
picked up or delivered. This was followed by a number of services that address difficulties in society, such as
TA-Q-BIN Collect, a payment on delivery service essential to the spread of online and mail order shopping,
Cool TA-Q-BIN, for delivering fresh produce, and Time Period Delivery, designating a time when a parcel will
be delivered.
The Yamato Group is also implementing Project G (Government), which seeks to address social issues
through close partnerships with local governments and organizations as a means to furthering the use of
Yamato Group solutions. The Yamato Group Corporate Social Responsibility Report 2016 explains that up toJune 2016 a total of 1,770 projects have been considered, with 529 of these projects now being implemented
as actual services.
Project G is seeking to build a collaborative social system that utilizes the strengths of all stakeholders
involved, including local governments and organizations, as a means of the Yamato Group creating sharedvalue (CSV).
The number of these projects and services continues to increase with each passing year. Employees with akeen sense of the issues through their experience on the frontlines and with customers are establishingcollaborative mechanisms with various players based on their strong sense of motivation and providing the
Yamato Group’s logistics technology, information technology and financial technology as a platform, which
results in collaborative projects with local governments and organizations. As a result, the Yamato Group ismaking forward progress with solving difficult to address social issues, having a positive impact on society inevery corner of Japan.
Project G has focused mainly on initiatives with local governments in regional areas of Japan, but as coveredin the Yamato Group Corporate Social Responsibility Report 2016, the lifestyle support service was launched- 44 -

| Third-Party Opinion |in April 2016 with the collaboration of the Yamato Group, Urban Renaissance Agency and the City of Tama asa project focused on urban areas. Additionally, in fiscal 2015, through its International Cool TA-Q-BIN service,
the Yamato Group is using its robust international network alongside local governments such as Aomori
Prefecture to help connect restaurants outside of Japan with local Japanese producers, creating a new
innovation only possible by the Yamato Group. In addition to its watch over services for the elderly andlifestyle support (shopping support, etc.), consolidated cargo, disaster reconstruction assistance, tourism
promotion support, and regional revitalization assistance, now the Yamato Group has added living support inurban areas and international business development support to the mix. This demonstrates that the YamatoGroup is implementing more focused and complex solutions.
I believe the Yamato Group is well on its way to fulfilling its goal of becoming “a company most loved andtrusted by society” as “Asia’s No. 1 solution provider in distribution and lifestyle support,” by the year 2019
when it will celebrate its 100th anniversary as noted at the beginning of the 2016 report. This is because
Project G is addressing social issues through collaboration with various players as a company that forms animportant piece of social infrastructure and thanks to its style of focusing on the contributions of each andevery employee, who maintain direct contacts with society.

Areas in Need of Future Improvement
Yamato Holdings is working to expand its delivery business, grow its non-delivery business and reinforce its
overseas expansion, all under the long-term management plan “DAN-TOTSU Management Plan 2019.” As aresult, the social responsibilities expected of it have grown larger. I praise Yamato Holdings for its efforts toclarify materiality within its CSR initiatives based on a review and understanding of the impacts of its
corporate philosophy and resulting expectations of stakeholders.
Given this assumption, every year Yamato Holdings is expected to check the themes for CSR improvements
as well as to focus on considering its approaches to CSR together with its overseas expansion and puttingthese continual improvements into practice.
Additionally, I anticipated that Yamato Holdings can increase the number of its strengths by establishing amechanism across the entire value chain that can more clearly verify how each and every employee, whoform part of the precept “We ‘all’ represent the company,” should be involved in CSR and CSV. This is likely
already being put into practice, but by sharing greater details about its implementation and future policies, I
believe the company’s stance will become clearer.
Project G is a way of promoting the Yamato Group’s philosophy since its origin, which makes its acceleration,
establishment and advancement important.
I believe approaches to Project G can be categorized as follows:
Project G 1.0: Enable elements (platforms) maintained by the company to be provided to society
Project G 2.0: Establish mechanisms for responding to the needs of society
Project G 3.0: Establish collaborative models with various players to create shared value
As indicated in the feature articles section of the report, I believe that the Project G 3.0 model has become
main format across the Yamato Group through its trial and error approach on the frontlines. As a result,mechanisms are being created that create new innovation in society and that advance solutions to social
issues.
Going forward, I expect these level 3.0 projects to be promoted further across Japan to raise the bar higher.
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| Third-Party Opinion |The domain of social issues addressed by Project G, however, cannot necessarily be identified beforehand interms of how issues should be addressed and in some cases a trial and error approach is needed to elucidate
the fundamental essence of issues. These projects also face the challenge of meeting the needs of social
system or social program design and reform. The approach in such situations should be to facilitate trial anderror approaches among Yamato employees on the frontlines tackling the issue or to advance a morecollaborative model to establish a system for designing and building mechanisms collaboratively that address
specific programs.
It will be important for Project G to be expanded to every corner of Japan to encourage greater mutual
learning and interaction. Also, when providing an established model to another community, trial and error ineach individual location will become important. I expect the Yamato Group to establish such a system forpromoting and encouraging these types of efforts.
The Yamato Group Corporate Social Responsibility Report 2016 (print and website versions) provides
commentary on the uniqueness of Project G through the feature article and other sections, indicating its roleand value to the Yamato Group. At the same time, though, it is rather difficult to grasp the situation of thecountless projects being implemented across Japan. The overall impression of this nationwide Project G isquite appealing, which by itself should lead to new collaboration. I believe the Yamato Group needs toconsider nationwide collaboration and building a system to support such collaboration.
The Yamato Group engages in the delivery, BIZ-logistics, home convenience, e-business, financial,autoworks, and many other businesses. Several Project G projects are already being implemented thatleverage such collective strengths of the Yamato Group, but efforts should be made moving forward to further
advance such projects and heighten connectivity with its businesses to increase the effectiveness. I expect
the Yamato Group to consider approaches with potential from various perspectives.
In either case, I would like to see the Yamato Group clarify and publish issues faced from the further
promotion and spread of Project G and the status of any improvements on a fiscal year basis.

2. CSR Report: Objectivity and Ease of Understanding
Areas of Excellence
The Yamato Group Corporate Social Responsibility Report 2016 features an abridged highlights version(print) and a full online report version (website). Currently, the print version is shortened, with more detailed
and exhaustive commentary reserved for the online version, while current trends and data of note appear in
the print version.
The format, delivery, and utilization methods of a CSR report needs to be tailored to the viewpoints andstrategies of each individual company.
The print version in paper form with comprehensive and exhaustive information (as has been the format untilnow) has been attractive, but because many of the Yamato Group’s products and services such as TA-Q-BIN
are used by the general public, making a print version easy to distribute and convenient to browse. It is
important to modify how information is delivered based on the perspective of emphasizing stakeholder- 46 -

| Third-Party Opinion |engagement, and I expect the Yamato Group to explore its future style and design of reporting based on how
the report is actually utilized.
The online version uses the Internet to foster communication by making the Yamato Group’s stance toward
CSR and CSR initiatives more easily understood through videos and other formats unique to the Internet.
Links are also provided to previous feature articles to encourage greater understanding. The Yamato Group isalso focusing the attention of stakeholders by offering more details content within each year’s feature articles
section.
Generally, for its CSR report, the Yamato Group has put a system in place for stable communication byenhancing content and improving explainability by combining the report into a print and online version. I
expect the Yamato Group to further advance its communication with stakeholders using this platform.

Areas in Need of Future Improvement
I commend the fact that explanations use data, but I would like the future directions and issues to beelucidated by providing information that captures annual changes as well as relative data. I also noticed a gap
in the presence and comprehensiveness of data based on the matter being discussed. For example, in thefield of safety, in most cases the achieved results (outcome and impacts) were indicated using data, whichindicates thorough efforts are being made with safety, an important topic of concern for Yamato Holdings. For
the environment and society, too, information is provided quantitatively to every extent possible and I noticed
information about outputs and qualitative explanations. Although there are domains where definitions andquantification of results is difficult, Yamato Holdings needs to supplemental explanations about the benefits
provided to society in these cases and to detail annual changes or gaps so as to indicate advancements(even if qualitative in nature).
Yamato Holdings should also appeal information disclosures and numerical data compliant with the latest
trends in ESG investment and impact investing. Investor relations and CSR, however, have different aims andgoals, so Yamato Holdings will need to closely examine relationships and policies (instead of completely
integrating both).
As for the impacts provided by Project G, which forms Yamato Holdings’ CSV, I expect there to be KPI for
each individual project, so I would like Yamato Holdings to establish a scope for which it can disclose thisinformation and then indicate the current situation and progress made overall, which will further enhane theeffectiveness of these efforts.
Online information can be revised and distributed quite easily. Yamato Holdings already shares information
about awards, agreements and events through the CSR News section. By more strategically sharing thestatus of CSR implementation and the situation after each event and agreement, visitors to the website will beable to have a greater sense of how the Yamato Group’s CSR is continually in flux.
As for approaches to CSR reporting, I would like Yamato Holdings to share more detailed information on its
annual improvements and updates to show what policies are used to make these annual improvements
continuosly.

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| Third-Party Opinion |I would first like to thank Mr. Tamamura for his very valuable
feedback and suggestions regarding the Yamato Group's CSR
activity reporting.
This report focuses on specific case studies in the areas ofsafety, the environment, and society, along with relevant data.
Ahead of 2019, our 100th anniversary, feature articles this year
highlight our watch-over initiative for the elderly and the lifestylesupport service in our aspirations to become "a company most
loved and trusted by society."
I am very honored to to hear Mr. Tamamura to say, “the YamatoGroup is making forward progress with solving complex social
issues, having a positive impact on society in every corner ofJapan,” with regard to these initiatives.
Going forward, we will strive to make the report more accessible
and easier to understand for all stakeholders by providing aclear direction with regards to the Yamato Group’s CSR
initiatives as well as progress based on past data.
The efforts of all of our employees in Japan and abroad,including Sales Drivers on the front lines, are the driving force
behind the Yamato Group’s growth and the positive reputation
our CSR initiatives have earned.
We stand commmited to giving back to local communities
collectively as a group of companies, while also emphasizing
our culture and philosophy when it comes to ensuring our
employees have pride in their work and answering the questionof what they can do to make a difference for customers in theircommunity.

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Tomoki Otani
Yamato Holdings Co., Ltd.
Senior Executive Officer
Legal Affairs & CSR Strategy

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

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

Period covered in report
Fiscal 2015 (April 2015 - March 2016)
Performance data is as of the end of March 2016, unless noted otherwise. (Some information from before thetarget fiscal year and after April 2016 is included in reporting on activities.)

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

Publication
October 2016 (scheduled next publication: October 2017)

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

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

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

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

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

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

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

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

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