Yamato Group Corporate Social Responsibility Report 2017

We Are Committed to Becoming a Company
Most Loved and Trusted by Society

For more information about this report, please feel free to contact us.

Yamato Holdings Co., Ltd.
Legal Affairs & CSR Strategy
Address: 16-10, Ginza 2-chome, Chuo-ku,
Tokyo 104-8125, Japan
Telephone: +81-3-3541-4141
Facsimile: +81-3-5565-3427
E-mail: csr-report@kuronekoyamato.co.jp
URL: http://www.yamato-hd.co.jp/english

We Are Committed to Becoming a Company
Most Loved and Trusted by Society
The Yamato Group’s goal is to become “a company most loved and trusted by society”
by 2019 when it will celebrate its 100th anniversary.
This report introduces readers to our efforts as a company that serves
as an important component of social infrastructure.

Company Overview (As of March 31, 2017)
Yamato Holdings Co., Ltd.
16-10 Ginza 2-chome, Chuo-ku,
Tokyo 104-8125
Established
November 29, 1919
127,234 million yen
Capital
Total number of authorized shares:
Stock
1,787,541,000
Total number of shares outstanding:
411,339,992
Number of shareholders 36,390
Number of employees 201,784 (consolidated)
Business lines
Holds the shares of companies
running various businesses including
the trucking business, governs
the management of those companies,
and runs related service operations.
Company name
Headquarters

1

13

31

oﬃces

oﬃces

Message from the President・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

Environment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・21

Feature Articles

Society・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・27

7,245

Operating revenue

15,00013,967(100 million yen)689

14,164

14,668

800

685

600

9,000

oﬃces

oﬃces

348

6,000

● Main office of overseas subsidiary● Major base0

Fiscal year ended
March 2015

Fiscal year ended
March 2016

Fiscal year ended
March 2017

Autoworks Business45.6 billion yen
Home Convenience Business

Financial Business

400

024.6 billion yen
Other businesses

49.1 billion yen
77.9 billion yen

200

3,000

Global CSR Activities of the Yamato Group ・・・・・・・34

e-Business

Operating income(100 million yen)

Initiatives of the Yamato Welfare ・・・・・・・・・・・・・・・・・・・・・33
Foundation

Breakdown of Operating Revenue(consolidated)

Operating Revenue and Operating Income(consolidated)

12,000Japan

137

Safety・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・15

Bus Services
2 Providing Eco-friendly and Smart ・・・・・・・・・・・・・・・・・・・・・・・13
Logistics Services

North America

Asia

Overview of the Yamato Group・・・・・・・・・・・・・・・・・・・・・・・ 1

1 TA-Q-BIN Deliveries Using Scheduled ・・・・・・・・・・・・・・・・・・・ 9International Presence (As of March, 2017)
EuropeTable of Contents

BIZ-logistics Business9.7 billion yen
Fiscal year
ended March 2017

1,466.8(billion yen)108.6 billion yen
Non-delivery businesses

315.8 billion yen

Delivery Business

1,151.0 billion yen
2Delivery Businesse-Business
Harnessing ICT to Streamline Customer Business Processes

TA-Q-BIN Services Delivering New Forms of Conveniencein Japan and in Asia

We deliver services within and outside the Yamato Group under the three
key words tracing (leveraging our refined traceability capabilities in logistics)
security (delivering added peace of mind), and packaging (aiding early
introduction and implementation).

The small parcel delivery business—most recognized for our TA-Q-BIN
services—and domestic air cargo transportation business represent
the driving force behind the collective strengths of the Yamato Group.
We also provide the same highly reliable TA-Q-BIN services as in Japan
in many parts of Asia, including Taiwan where services started in October 2000,
Shanghai and Singapore in January 2010, Hong Kong in February 2011,
Malaysia in September 2011, and Thailand in April 2017.

Financial Business
Providing a Host of Essential Settlement Services
for Product Shipments, Including COD, e-money,
and Credit Card Payments

BIZ-logistics BusinessHelping Corporate Customers Find Solutions to Their
Various Logistics Challenges
Our services and solutions focus on the efficient storage and flowof goods. Through close collaboration with our network of international
subsidiaries we deliver integrated transport services and provide lifestylesupport solutions, while in Japan we offer support with product recalls
and logistics for pharmaceuticals.

Yamato GroupThe Yamato Group offers collections, leasing and credit finance at the timeof product shipment. We also help customers access increased sales
opportunities by facilitating settlements for mail order businesses andB2B logistics.

Autoworks Business
Delivering a Broad Range of Services for Transport Providers,from Vehicle Management to Logistics Facility MaintenanceHome Convenience Business

The Yamato Group offers advanced vehicle maintenance solutions andleveraging this experience we provide integrated support to transport
providers and bus operators. Our services also include management,
development, customization services, as well as the supply of fuel,automotive insurance, and logistics facility maintenance, among others.

Supporting All Aspects of Living, with a Focus on Moving
as well as Furniture/Home Electronics Deliveries and Set Up
We deliver a host of lifestyle support services, including moving as wellas the delivery and setup of household items. We also help to make people’s
lives richer by eliminating inconveniences at home or at work, including
delivering rare and unique products from across Japan directly from producer
to customer.

Other businesses Our other businesses mainly include arterial transport,
Organizations

box charters, and shared services.
These organizations provide welfare services and offer
benefit programs within the group.

Group Companies (as of June 2017)
Delivery Business:

Group companies: Yamato Transport Co., Ltd. / Okinawa Yamato Transport Co., Ltd. /Yamato Global Express Co., Ltd. / Yamato Dialog & Media Co., Ltd. / Express Network Co., Ltd. /Yamato Contact Service Co., Ltd. / Yamato Staff Supply Co., Ltd. / Yamato (China) Transport Co., Ltd.

BIZ-logistics Business: Group companies: Yamato Logistics Co., Ltd. / Yamato Global Logistics Japan Co., Ltd. /Home Convenience
Business:3

Yamato Multi-Maintenance Solutions Co., Ltd. / Yamato Packing Service Co., Ltd. / Yamato
Packing Technology Institute Co., Ltd. / Konan Industry Co., Ltd. / Yamato Transport U.S.A., Inc. /Yamato Transport Mexico S.A.de C.V. / Yamato Transport Europe B.V. / Yamato Logistics (HK) Ltd. /Taiwan Yamato International Logistics Inc. / Yamato International Logistics Co., Ltd. /Shanghai Wai Gao Qiao Bonded Logistics Zone Yamato Warehouse Co., Ltd. / Yamato Transport(s)Pte. Ltd. / Yamato Tidiki Express Pte. Ltd. / Yamato Unyu (Thailand) Co., Ltd. / Yamato Transport (M)Sdn. Bhd. / Yamato Logistics India Pvt. Ltd. / Pt. Yamato Indonesia / Yamato Logistics Vietnam Co., Ltd.

e-Business:

Yamato System Development Co., Ltd. / Yamato Web Solutions Co., Ltd.

Financial Business:

Yamato Financial Co., Ltd. / Yamato Credit & Finance Co., Ltd. / Yamato Lease Co., Ltd.

Autoworks Business:

Yamato Autoworks Co., Ltd. / Yamato Autoworks Hokushinetsu Co., Ltd. / Yamato Autoworks
Okinawa Co., Ltd. / Yamato Autoworks Iwate Co., Ltd. / Yamato Autoworks Shikoku Co., Ltd.

Other Business:

Box Charter Co., Ltd. / Yamato Box Charter Co., Ltd. / Yamato Management Service Co., Ltd. /Yamato Multi Charter Co., Ltd. / Kobe Yamato Transport Co., Ltd. / Swan Co., Ltd. /Yamato Asia Pte. Ltd. / Yamato Logistics (HK) Limited / Yamato (China) Co., Ltd.

Organizations:

Pension Fund of Yamato Group / Yamato Group Health Insurance Societies /Yamato Welfare Foundation / Yamato Self-support Center / Yamato Group Research Institute

Yamato Home Convenience Co., Ltd.

4

Message from the President

We Are Committed to Being a Compa ny that
Continually Creates New Value for the World and for People
Helping Resolve Social Issues
through Innovation

Today, Japan is faced with a number oflogistics technology (LT), and financial technology

for local specialty products to address community

challenges, including a falling birthrate, rising(FT) of our group companies into platforms throughissues such as the decline of local industries.

The Yamato Group will celebrate its 100thelderly population and depopulation. Taking thispartnerships with local people, NPOs as well as

In this manner, we are proposing solutions thatanniversary in 2019. Our history is one of innovation,

situation into account, as a new form of CSV,

similar companies operating in the community toharness the functions of the Yamato Group based

having produced countless new -essential

the Yamato Group is focusing on “Project G

tackle local issues together with local governments.

on the issues of the local community.

services from time to time, including TA-Q-BIN.

(Government)”, which calls for helping to resolve

For example, we offer watch-over support

Our combined passenger-cargo service for TA-Q-BIN

This is also the result of our commitment to the worldsocial issues through close partnerships with local

for the elderly to regularly check on the well-beingtransport launched in fiscal 2015 using existing

and to people coupled with our pursuit of creating

governments and others. We have examinedof elderly living alone in the community, provide

scheduled bus routes received the Minister ofshared value (CSV) in which we realize economic

1,971 projects as of June 2017 and of theseshopping support for those local residents who

the Environment’s Prize at the 13th Eco Products

and social value as a company while resolving

currently 611 are being provided as actual services.

are unable to travel to stores to do their shopping,Awards. In communities facing depopulation it is

We are turning the information technology (IT),and support the expansion of sales channels

becoming more difficult to maintain the scheduled

various customer issues.

▼ Yamato Group Corporate Philosophy
Structural Diagram of the YamatoGroup Corporate Philosophy

1. We ‘all’ represent the company
2. We deliver with a personal touch
3. We work with gratitude and politenessManagement Philosophy

Customers
Local
peopleShareholders

Employees

Partners

Employee Codeof Conduct

Corporate StanceManagement
Philosophy

Yamato Group
Corporate Philosophy

Company Precepts
Founding spirit

5Company Precepts

Masaki Yamauchi
Representative Director, President,
and Executive Officer

Yamato Group helps to enrich our society
by enhancing its TA-Q-BIN network as social
infrastructure, creating more convenientservices for comfortable lifestyles,
and developing innovative logistics systems.

Corporate Stance
1. Pursuit of customer
satisfaction
2. Respect for human life
3. The pleasure of work
4. Adherence to laws and fair
practices
5. A corporation trusted by
the local community
6. Promoting environmental
protection
7. Protection of personal
information
8. Communication and mutual
benefits
9. Disclosure of corporate data
and accountability practices
10. Response to allegations ofcorporate misconduct

Employee Code of
Conduct
1. Our role as a member ofsociety
2. Action based on laws andethics
3. Strict observation of
workplace rules
4. Creation of a work
environment that respects
human character
5. Maintaining favorable
relations with business
partners
6. Providing the best possible
service to customers

6Creating Value Driven by “Value
Networking” Design

conditions due to the rapid growth of e-commerce,

trusted by the local community” and “promoting

and as a result, we were unable to keep pace withenvironmental protection,” and which form

The Yamato Group has come up with the Value

this growth and our working environment suffered.

the heart of the Yamato Group Corporate

Networking design, which seeks to evolve logistics

As a critical aspect of social infrastructure,

Philosophy.” The Yamato Group engages in CSR

from a cost to a means for generating value by

the Yamato Group recognizes that it is important

activities after determining material issues andrestructuring our network in Japan and international

for its employees who underpin its services

initiatives with consideration given to its impacts

markets in an effort to support Japan’s growth

to have a sense of pride, motivation, and passion

on society, including stakeholders.

strategy through logistics restructuring thatfor what they do, in order for it to live up

As we move forward with the globalization of

involves all customer business segments and sizes.

to the expectations of society and customers.

our businesses, we became a signatory to the UN

In 2013, we opened Haneda Chronogate as

In February 2017, Yamato Transport established

Global Compact, a framework advocated by

the centerpiece of this concept. At the same time,“office for reforming working styles”, while otherthe UN for achieving sustainable growth, in April

we opened the Atsugi Gateway for the Kanto

group companies set up “working styles innovation2014 and stated our support for the four fields ofregion in 2013 and the Chubu Gateway forcommittees”. In this manner, we have begun

focus (human rights, labor, the environment andbus network that is one of the main ways

the Chubu region in 2016. Following this, we willconcerted efforts across all group companies

anti-corruption) and 10 principles.

for residents to get around. This initiative switches

open the Kansai Gateway for the Kansai region in

to usher in working style reforms.

transport of TA-Q-BIN from a truck to scheduled

October 2017. By combining the overwhelming

We are also working on the structural reformbus operated along the same route, which not

speed of major logistics hubs with added valueof the delivery business to redesign and innovate

operating income to include customer satisfaction,

only lowers CO2 emissions, but also provides

functions, our IT, LT and FT solutions, as well as ourthe business model of the whole delivery businessshareholder satisfaction, social satisfaction anda new source of income that helps bus operatorslast one mile TA-Q-BIN network in Japan and Asia,

to better suit the current time frame.

employee satisfaction. We believe that enhancing

to maintain their route network. This initiative has

we will evolve distribution and transform not only

Going forward, we will continually work on

overall corporate value including CSR activities

been highly praised as a solution to community

C-to-C logistics, but also B-to-C logistics as well.

working style reform as a key focus of management.

will link with the continual and sustained growth

Promoting Initiatives for Important CSR
Issues in Safety, the Environment,
Society and Governanceof the Yamato Group. Going forward, the Yamato

Yamato Group’s CSR is defined as living up to

loved and trusted by society. Your continued support

issues and for its revitalization of communities.
At present, we are working with community

Design, we will seek to increase the speed ofbus operators in Hokkaido, Iwate, Hyogo,

customer distribution like never before, while

Kumamoto and Miyazaki prefectures. Yamato

cutting costs and improving quality.

Transport has recommended restrictions on cargo

the trust and expectations of all stakeholders bythat these initiatives can be expanded toPromoting Working Style Reform
Collectively as a Group as a Top Priorityof Management

depopulated areas nationwide and contribute

In the delivery business, recently we have seenon the 10 aspects of our corporate stance,

to these communities.

significant increases in parcels and tight labor

including “respect for human life,”“a corporationtransport on passenger vehicles be eased so

7

Moving forward, under the “Value Networking”

We also recognize that corporate value extends
beyond mere financial assessments such asGroup will continue to generate new value andmake further efforts to become a company mostis greatly appreciated.

fulfilling responsibilities in not only the economy,
but in safety, the environment, and society, based

Masaki Yamauchi
Representative Director, President,
and Executive Officer81▼ Operation flow of schedule bus with specialized refrigerated box on board

TA-Q-BIN Deliveries Using Bus Routes Services●

Miyazaki

Using Our Combined Passenger-Cargo
Operations to Improve Services andResolve Issues in Local Communities

FeatureArticle▼ Municipalities with Cancelled Scheduled
Bus Services and the Number of Routes〜2000

Approx.

■Municipalities with cancellations■Number of routes cancelled

400 to 500

routes/year
decrease

488

473

254
130

2001

18:31 arrival

13:26 arrival

17:45 departure

Yamato Transport

Social Issue674

12:40 departure

Bus stop

Higashimera Shinryosho

Saito TA-Q-BIN Center

The number of public transportation users in Japan’s coastal
and mountainous areas of regional cities is declining due
to the penetration of automobiles and a population exodus
to cities. In particular, scheduled bus services are facing
severe challenges, including schedule cutbacks andeven closure.

2,187

Miyazaki Kotsu

Saito Bus Center

453

555

195

193

215

255

2002 *

2003

2004

2005

Communities are Facing Difficulties in
Maintaining Scheduled Bus Services
and Other Public Transportation due to
Depopulation and Aging Populations
The communities of Higashimera district andNishimera Village in Saito City, both surroundedby mountains and forests in western Miyazaki
Prefecture, have among the largest depopulation
and aging population rates in the prefecture.
Each year their population declines, while
the ratio of elderly living there is around 40%.
In these communities, scheduled bus services
play an important role as a way for local residents,
including the elderly, to get to the urban partof the city. Increasing productivity of routes withfew passengers has become an extremely difficult
issue for bus operator Miyazaki Kotsu Co., Ltd.
Meanwhile, when delivering TA-Q-BIN
parcels to customers in these same communities
from Saito City, Yamato Transport has had tosend out a delivery truck from its Saito TA-Q-BIN
Center in Saito City along a nearly 50km journey
taking close to an hour and a half. Whenconsidering the return trip, Yamato Transport
had to set the cutoff time for parcel collection at
3:00pm for both communities, which has provento be an inconvenience for customers.

13:26 departure

17:40 arrival

Higashimera
district

Bus stop

Murasho
14:06 arrival

17:00 departure

Collection deadline
Two hour extension

Nishimera
Village

Combined Passenger-Cargo Operations
Offers Benefit for the Local Communities,
Miyazaki Kotsu and Yamato Transport
To resolve this issue, Yamato Transport
proposed combined Passenger-Cargo
Operations, whereby TA-Q-BIN cels would betransported between Saito City andNishimera Village aboard a scheduled bus
service. This involved transporting a mixedcargo of bus passengers and TA-Q-BIN parcels
by reducing a few passenger seats to makeroom for cargo space on a scheduled bus
already servicing the area.

*Revised Road Transportation Act enacted (eliminating supply-demand coordination) in February 2002
Source: Investigative Report on Bus Operation Formats, etc. published by the Passenger Transport Division, Road Transport
Bureau, Ministry of Land, Infrastructure, Transport and Tourism

910▼ Benefits of the Three Parties Received from the Combined Passenger-Cargo Operations
Local Residents
Miyazaki Prefecture, Higashimera district,
Saito City and Nishimera Village● Maintain current scheduled bus

service network● Improve TA-Q-BIN services, including

extending collection time

● Provision of other services from

Yamato Transport, including
watch-over support for the elderly● Improve productivity ofscheduled bus service● Generate a new income stream
to help maintain scheduled bus
service network● Reduce travel time
● Lower CO2 emissions fromreduction in distance traveled

Miyazaki Kotsu

This initiative offers benefits to each of
the three parties. First, Miyazaki Kotsu is able toincrease productivity of its scheduled bus service
and generate a new income stream that will
help to maintain its route network by
transporting TA-Q-BIN parcels using otherwise
empty space. Next, Yamato Transport is able
to extend the cutoff time for same-day parcel
collection to 5:00pm because the Sales
Driver (SD) for both communities no longer
had to return to the Saito TA-Q-BIN Center,increasing the time spent locally. Also, Yamato
Transport is able to reduce CO 2 e m issions
because of the shorter distance the delivery
truck drives. Finally, local residents are able to11

Yamato Transport

access various facilities in the city including
hospitals and supermarkets because the bus
network is unchanged, which maintains andimproves their living standard. In addition, thismakes it possible to respond more flexibly tocustomer requests for changes in delivery
times. Furthermore, at the time of delivery
the SD can provide watch-over support
for the elderly by reporting any changes incustomers to the local government, which
improves the lifestyle services of local residents.

Offering Scheduled Bus Services
that Contribute More to
the Community▼ Scheduled Bus Services Using

the Combined Passenger-Cargo Operations●

Katsumasa Onoue
General Manager
Bus Department
Miyazaki Kotsu Co., Ltd.

When I first heard about this solution from Yamato
Transport I was concerned that such an arrangement
could hinder scheduled bus operations. In actuality,
however, Yamato Transport proposed the service in tune
with our existing bus schedules, which means we canprovide the same services to our customers as before.
I look forward to working with Yamato Transport onother new ventures in the future as a scheduled bus
service operator that contributes to local communities.

Creating a New Service that Is More
Convenient and Contributes toCommunities
Currently, Yamato Transport offers combined
Passenger-Cargo Operations on threescheduled bus routes in Miyazaki Prefecture.
In January 2017, Yamato Transport launched
the first Cool TA-Q-BIN using this service inJapan between Saito City and Nishimera
Village, which is being used to transport local
specialty produce grown locally.
The Yamato Group is committed to using
various angles to resolve issues and revitalize
communities in mountainous regions where aging
populations and depopulation is progressing.

●

Meishi Bus, Shibetsu Kido,
Tokachi Bus,
Sorachi Chuo Bus (Hokkaido)●

Sanko Bus
(KumamotoPrefecture)●● Miyazaki Kotsu(Miyazaki Prefecture)

Iwate Kenpoku Bus(Iwate Prefecture)

Zentan Bus(Hyogo Prefecture)

Deploying Our Know-how
in Other Communities

Yuji SatoManagerBusiness Development Department
Miyazaki District Branch
Yamato Transport Co., Ltd.

We have been able to improve services for customers by
reducing the travel time of the SD, which had
been around three hours round trip. The fact that
we significantly extended the final collection time ofthe day also pleased our customers very much. We also
launched Japan’ s first Cool TA-Q-BIN combined
Passenger-Cargo Operations using refrigeration facilities,
I hope to share the know-how from this initiative withother communities in Japan.

122FeatureArticle●Providing Eco-friendly and Smart Logistics Services

Kanagawa

The First Centralized Delivery Serviceof its Kind in Japan for Residential
Neighborhoods Using ICT

A Century of Community
Development
in a Public-Private Venture

Tomohiko Miyahara
General Manager
CRE Business
Development Group
Panasonic Corporation

Panasonic serves as the representative for the council that
operates Fujisawa SST. When I received the proposal,
I felt like Yamato Transport had a deep understanding ofour vision for this community. I look forward to creating
new services together utilizing the functions of
the Yamato Group.

Always Thinking How toContribute to Community
Development

Junya Koizumi

Branch Manager
Fujisawa Tsujido Branch
Yamato Transport Co., Ltd.

Centralized delivery service of parcels to residential
neighborhoods was a first-of-its-kind venture in Japan.
Customers who use this service have raved, proclaiming
it saves them the hassle of picking up their parcel andthey know exactly when the parcel will be delivered. I hope
to continue working with other companies to contributeto the revitalization of communities with new ideas.

Company A
Company B

BEFORE
Parcel Shipment

YamatoTransport

Company A
Company B
YamatoTransport

Destination

Parcel info
Delivery schedule
Parcel Shipment Notice of Failure to Deliver

Next
Delivery
SQUARE

Centralized
Delivery
Change ofDate and Time
Destination

AFTER

Social Issue
Today, Japan faces the issue of depopulation in rural areas,
but in urban areas it faces the issue of rising energy usage
from higher population density.

Providing Total Support toCommunities Using Eco-friendly andSmart Logistics Services
Fujisawa Sustainable Smart Town (Fujisawa SST)
was established through a partnership between
the City of Fujisawa in Kanagawa Prefecture
and private-sector companies. As a smart town
and hub of residential living, this community is
promoting a sustainable, smart life for residents
by incorporating new services and technologies
with an eye on community development thatspans a 100-year time horizon.

13

Yamato Transport opened Next Delivery
SQUARE inside Fujisawa SST in November 2016as an integrated logistics hub for the entire
community. Using this hub, we launched
Japan’s first-ever a centralized delivery service
for an entire residential neighborhood in which
all parcel deliveries from other providers go throughthis facility and Yamato Transport is responsible
for the last one-mile.

TopicsOn October 25, 2016, a centralized delivery service provided
at Fujisawa SST became the first in Japan to receive
certification from the Ministry of Land, Infrastructure,
Transport and Tourism under the Revised Act for Integration
and Improvement of Physical Distribution.

Making Life More Comfortable with
On-demand Logistics and Activities
in the Community
In March 2017, Yamato Transport launcheda service using ICT where the day’s delivery
schedule and notices of failure to deliver are
streamed live using a smart TV installed in eachhome. In this manner, we are developing
an environment that meets the delivery needsof each household in the community. Changes
can be made to the delivery time or designateddelivery location from the TV screen, which
eliminates the hassle of contacting eachindividual express home delivery provider
and receiving parcels individually. This also
cuts back on the number of delivery vehicles
on the road, reducing environmental impacts.
Also, Next Delivery SQUARE uses LED lighting

and is built from low-carbon construction
materials, not to mention it has a photovoltaic
power generation system, as a smart facility
that generates its own energy. As a result, Next
Delivery SQUARE produces about 30% less
CO 2 emissions than Yamato Transport’s otherdelivery centers.
The facility also holds traffic safety classes
for children and gives children the chance totour and learn about the work that takes place
there. In this manner, Next Delivery SQUARE
is committed to community development
together with local residents as a member of
Fujisawa SST.
Going forward, the Yamato Group will continue
to create proposes utilizing the functions of
its group companies with the aim of achieving
sustainable communities.
14

Be safety aware
when driving

SafetyThe purpose of the meet is to improve the safe driving of professional
drivers as well as raise awareness about safety and enhance driving
skills across the company.

Competition
involving driving
on narrow roads

With Respect for Human Life as Our Top Priority, We Are Always
Striving to Achieve Safety.
The Yamato Group’s business depends on community streets and roads. For us, the safety of
everyone in the community is of highest importance. Under the motto “Safety First, Business
Second,” we are committed to measures aimed at safe transport, and make respect for human life
the top priority at all times in our business.
The Yamato Group’s Major CSR Initiatives
Accident prevention

Businesses

DeliveryInternational

Non-delivery

BIZ-logistics
Improving logistics and storage
solutionsHome Convenience
Moving services and delivery andsetup of household items

Autoworks
Vehicle management services

e-BusinessInformation system development

Financial

Japan
International

Japan

Japan

Japan

Japan

Financial services including
payments

Governance

Providing security andpeace of mind
Proper handlingof confidential
information

Japan

Small parcels (TA-Q-BIN, etc.)

15

Achieving safe workplaceenvironment

Prevention of traf f ic
accidents
Prevention ofdangerous articles
being included in air
cargo shipments
ensuring air cargosafetySafety measures
matched to local
traffic conditions

Assistance withproduct recalls
Prevention ofoccupational accidents

Home security

A total of 56 employees took part, with 50 representing Yamato
Transport, three from Okinawa Yamato Transport, and three from
Yamato Global Express.

Rigorous
pre-department
checks

Initiatives of Note in Fiscal 2016

The Yamato Transport
Nationwide Safety
Contest to Raise
Awareness About
Safety and Improvetheir Driving Skills
Delivering
parcels withvehicles in tip
top shape

Mental health care
Truck, bus and othervehicle management
and maintenance solutions

Securing information
security for products
and services

International

Compliance / Business Continuity Plan / Information Security / Information Disclosure and Communication

Professional Sales Drivers (SD) who won their regional contests
compete against one antother in tests, daily inspections,maitnenance and driving techniques. In 2016, a new category
for female Sales Drivers (SD) was added to the contests.

As part of our efforts to operate clean and wellmaintained vehicles, representatives from Yamato
Autoworks provided a demonstration of how to use
an electric polisher and its effects. Participantslearned that another important aspect of safe driving
is maintaining their vehicle in tip top shape.

16

Training of Sales Drivers

Promotion of Safety Awarenessamong Employees● Education to Improve Skills● Commendations and Contests

To improve driving skills, Yamato Group is working toenrich our training programs and provide careful, detailed
instructions on a daily basis. At Yamato Transport, Safety
Experts and Safety Speakers assigned to district branches
provide regular ride-along instruction and training.

Each year we host The Yamato Transport Nationwide Safetycontest so as to promote greater safety awareness and operator
skills. Every year, Sales Drivers who excel in safe driving andwho remain accident-free are commended or awarded basedon the number of years and distance driven accident free.

Sales Drivers Who Have Received Ride-Along Instruction from Safety Experts

26,166

2014

38,432

2015

2016

44,392Long-Running No-Accident Commendation Awardees

2014

persons

2015(fiscal 2016; Yamato Transport)

2016

8,620
9,361

8,274

persons(fiscal 2016; total for three companies
including Yamato Transport)

Safety Training Provided to Employees
by Safety Experts

2,331

times

(fiscal 2016; Yamato Transport)

Establishment of Safety Plan
● Plan for Ensuring Safety during Transport

Yamato Transport displays
posters containing annual targets
and initiatives at all of its offices.

The Yamato Group reviews its important measures andplans concerning safety during transport on an annual
basis. By making these known to all employees, we areworking to reinforce awareness of safety.

Safety Experts Stationed Nationwide

2014
2015

2016
1

17

288
301

312

Major Accidents

persons(fiscal 2016; Yamato Transport)

4(fiscal 2016; Yamato Group total)

Acquisition of the Excellent Safe Driving Business “G-Mark*” at

2014
2015

2016

2,402
2,698

2,709

offices(fiscal 2016; Yamato Transport)*Symbol mark for certifying Excellent Safe Driving Businesses issued
by the Japan Trucking Association

18

Maintenance of Equipment
and Safety Systems

Promotion of Safety Awarenessamong Employees● Implementation of the Zero Traf fic

Autumn 2016 Zero Traffic Accidents
Campaign poster

Accidents Campaign

The Yamato Group implements the Zero Traffic Accidents
Campaign in April and September at all group companies,
including outside of Japan.

Zero Traff ic Accidents Campaign

Commenced in1970

Held annually for

47

consecutive years● Vehicle MaintenanceSuperworks are Yamato Autoworks’ 24-hour, 365-day
maintenance plants that feature greatly enhanced work
efficiency. Of the company’s 73 plants nationwide,
23 operate as Superworks.

Vehicle Maintenance Plant Superworks

22

2014

● Initiatives to Prevent Occupational

23

23

2015

2016

Accidents

The Yamato Group performs internal sharing of information
on near-miss incidents that can lead to major accidents,
in an effort to realize safe workplaces. In addition, all groupcompanies implement measures such as forklift safetyseminars and Safety Week, which aims to improve safety
consciousness.

sites

Number of Mechanics

2014

About

2015

About

2016

Overseas Rollout of Measures to Assure Safety● Safety Measures Matched to Local Traffic Conditions

880
940
About

940

persons

Number of Mechanics Who Are Qualif ied Vehicle Inspector

2014

About

Even outside of Japan, business sites hold a Drivers’ Contest safety meet and also participate in safety events.

2015

About

650

590

2016

About

600

persons● Adoption of Equipment and Tools

Yamato Transport (S) Pte. Ltd. held the 4th Driver’s Contest. In fiscal
2016, a representative from the Singapore Police Force was invited
to give a talk.

19

Yamato Transport (M) Sdn. Bhd. takes part in an annual safety event
organized by the national government. In fiscal 2016, empoloyees
took part in the van and motorbike categories.

Yamato Transport supports the safe driving of its Sales
Drivers by introducing drive records and digitizing safedelivery route maps using the proprietary See-T Navivehicular system.

20

Parceldeliveredto the locker

Environment

1
We promote the use of Parcel Lockers mainly located nearrailway stations in order to improve customer convenience andreduce environmental impacts from re-delivery.

Under the Key Word “Necology,” We Are Creating Environmentally
Friendly Logistics.
Yamato Group refers to our environmental conservation initiatives as “Necology.” With environmental
conservation a part of a corporation’s responsibility to society, we encourage all employees to beconstantly aware of environmental conservation as they conduct their daily tasks, in addition
to ensuring that our corporate activities remain environmentally friendly.
We establish environmentally-friendly logistics by ensuring environmental friendliness in all aspectsof transport, especially in packaging, transportation, and delivery.
We are committed to becoming a company that works hand in hand with the community to build
a better society through the provision of these environmentally-friendly products and services.

Initiatives of Note in Fiscal 2016

Reducing CO2 from Re-Delivery
by Building a Network of Accessible
Parcel Lockers

The Yamato Group’s Major CSR Initiatives
CO2 emission reductions

Businesses

DeliveryInitiatives duringtransport

Japan

Small parcels (TA-Q-BIN, etc.)

International

Non-delivery

BIZ-logistics

Japan

Improving logistics and storage International
solutionsHome Convenience
Moving services and delivery
and setup of household items

Autoworks
Vehicle management services

e-BusinessInformation system development

Japan

Japan

Eco-driving
Adoption of
low emission
vehiclesPromotion ofmodal shift
Environmental
impact reduction
throughcooperativetransport
Centralized
logistics withinlarge mixed-usedbuildings

Initiatives at facilities

Reduction of wastes
Initiatives to reuse
and recycle
Label recycling
Use of uniforms
made fromrecycled PET
bottles

Energy-saving
initiatives
Utilization ofnatural energy

Reusing andrecycling
unwanted articles

Initiative to reduce

Developing
eco-friendly
packagingmaterials

Confidential
document
recycling service
Recycling used
tires

Reusingrainwater

Japan

Going paperlessFinancialJapan

Financial services including
payments

Governance21

Pick-upthe parcel

Receive
password

2
Neopost Group of France and Yamato Group established a joint
venture company called Packcity Japan. This company installs
accessible Parcel Lockers that can be used jointly by multiple
providers, including Yamato Transport.

3
In addition to parcel pickup, we plan to offer moreconvenient and easy services at these locations,
including a way to easily send parcels.

International

Compliance / Business Continuity Plan / Information Disclosure and Communication
22

Eco in Transport

Hand-pushed trolleys

See-T Navi installed in a delivery vehicle● Pursuing Delivery that Involves● Practicing Eco-Driving

as Little Use of Vehicles as Possible

In our pursuit of delivery that avoids the use of vehicles
whenever possible, the Yamato Group is making use of new
three-wheelers (electric bicycles with trailers) and hand-pushedtrolleys. For vehicles that are required, we are making a shift
to low-emission vehicles. Also, we are making transport more
efficient through joint operations with other companies andwith a modal shift using trains and ships.

Yamato Transport’s proprietary See-T Navi vehicularsystem helps Sales Drivers to visualize fuel consumption
and other aspects of their driving, while eco-driving
training and other methods are used to refine
eco-driving practices.

Number of Vehicles with See-T Navi

Number of New Three-Wheelers

4,700
About 5,000

2014

About

2015

2016

About

5,200
(fiscal 2016)

Number of Low Emission Vehicles

About

28,000Penetration
rate of low emission
vehicles within
the Yamato Group

CO2

About

32,000(fiscal 2016)

TOPICS
Launch of the Kuroneko Small Home Appliance Recycling Service
Three years have passed since Japan’s enacted the Small Home
Appliance Recycling Act, but the collection of small home appliances
has not progressed according to the initial target.
As a result, in October 2016, Yamato Home Convenience launched
the Kuroneko home appliance recycling service that is used in conjunction
with its other moving and lifestyle support services to collect
all of the home appliances applicable under the Small Home Appliance
Recycling Act.

55.9 %(fiscal 2016; Yamato Group total)

Transport Volume of TA-Q-BIN Sent via Trainor Ship

430,000

About

23

tons

(fiscal 2016)

Demonstration Testing for Logistics Using Trains
In September and October 2016, five railway and logistics companies
including Yamato Transport jointly carried out demonstration testingon logistic using existing railway facilities along Tokyo Metro
Yurakucho Line and Tobu Tojo Line.
This demonstration testing targeted cargo transport using
the transportation capacity of passenger trains as a solution to social
issues facing Japan, including alleviating traffic congestion from logistics,
cutting CO2 emissions, and a shortage of drivers. The data andimpacts on passenger transport will be examined to determine
the viability of a modal shift from truck transport to passenger trains.

24Eco in Facilities

Eco with Local Communities● Promoting Energy Conservation● Kuronekoyamato Environmental Class

Haneda Chronogate

at Facilities

Energy Saving Technology

Photovoltaic Power
Generation

Incorporating the latest environmental technology thatmakes use of natural energy, Haneda Chronogate has
reduced CO2 emissions by about 46% compared to otherlogistics facilities of the same size.

about

46

Utilizationof Rain Water%

Energy Saving
Technology

Naturallight andNaturalVentilation

Eco in Products● Promoting the Development of● Initiatives to Recycle

The Yamato Packing Technology Institute has developed
packaging material that does not require package
cushioning, and packaging material that can be easily
separated from other waste.

The Yamato Group provides a recycling service that collects
and dissolves important documents no longer neededby customers using a chemical treatment process.

128

9,240

times
(fiscal 2016)(fiscal 2016)● Travelling Sales of Refurbished Products
Yamato Home Convenience cleans and repairs unwanted
home electronics and furniture thrown out during moves
and then travels around Japan for Kuroneko Caravan
outreach sales of refurbished products.

Kuroneko Caravan Outreach Sales% dissolved
Neco fit, which requires no cushioning

317
220,000
Held

times nationwide(fiscal 2016)
Kuroneko Caravan outreach sales of refurbished products

Number of visitors about

ECOBox system for recycling important documents

25

persons

Environmentally Conscious Products

Important Documents for Disposal

100

Number of Student Participants

Number of Environmental Casses Held

Haneda Chronogate Produces
about 46% Less CO2 Emissions than Other
Logistics Facilities Similar in Size.

Energy Saving
Technology

Yamato Transport holds environmental classes mainly forelementary schools students to convey the importanceof the environment. To date, these classes have been held a totalof 2,993 times, reaching a cumulative audience of 222,743.

Quick Fit for easy waste sorting● Participating in Environmental

Protection Activities in the Community

persons(fiscal 2016)

Yamato Group companies actively take part inneighborhood clean-up activities as a member of the local
community.

26

Society
We strive to enhance quality
in every aspect of our businessto create customer satisfaction.

Local
peopleHelping build vibrant communities
is our mission as a good corporate
citizen in the community andthe foundation of the YamatoGroup’s growth and development.

We Aim to Earn the Trust and Respond to Expectationsof All Stakeholders.
The Yamato Group seeks to be a company that develops in a sustainable manner together
with our society, by being aware of our social responsibility, while putting importance on dialogue
with all of our stakeholders. In addition, through our social contribution activities and businesses,
we will continue to solve the problems faced by local communities.

Customers

We aim to be a vibrant andpassionate company where
employees and their families
are vibrant, independent, andself-motivated.

Activities to Fulf ill
Our Responsibilities

Shareholders

Employees

Partners

We strive to establish positive
partnerships with our service
partners, Kuroneko Mate, andtransportation partners toachieve co-existence andco-prosperity.

We aim to achieve constructive
dialogue by providing a goodbalance of financial informationand non-financial information.

The Yamato Group’s Major CSR Initiatives
Activities to fulf ill responsibilities toward stakeholders

Businesses

DeliveryJapan

Small parcels (TA-Q-BIN, etc.)

International

Improving logistics and storage
solutionsHome Convenience
Moving services and delivery andsetup of household items

Autoworks
Vehicle management services

e-BusinessInformation system development

Financial

Governance

27

Japan
International

Japan

Creation of workplaces to motivate

Education and career development
Work-life balance
Respect for diversity

Japan

Japan

International

Shareholders
Appropriate and fair information disclosure /Enhancement of communication

Publication of the annual report and booklets
for shareholders
Earnings presentations and investor briefings
held inside and outside Japan

Local people
Employees

Japan

Financial services including
payments

Improving quality and customer satisfaction

Product development based on customer
needs (Ski TA-Q-BIN and Golf TA-Q-BIN, etc.)
Initiatives to improve customer service
and work quality

Non-delivery

BIZ-logistics

Customers

Supporting society and education

Music TA-Q-BIN Kuroneko Family Concert
Children’s Traffic Safety Workshop
Kuronekoyamato Environmental Class
Yamato Transport Business Seminarfor High School Students
Promotion of CSV in partnership with local communities

Partners
Fair and unbiased trading / Collaboration
for safety and improving service quality

Communication with TA-Q-BIN service
partners

Lifestyle support, sales promotion support
and tourism promotion support
Support for economic independence forpeople with disabilities

Initiatives by the Yamato Welfare Foundation
Operation of “Swan Bakery” stores, where people
with disabilities work.
Donations by employees

Compliance / Business Continuity Plan / Information Disclosure and Communication

Initiatives of Note in Fiscal 2016

Business Continuity Plan Revised to Reflect TA-Q-BIN’s
Presence as a Part of Social Infrastructure
We established a business continuity plan (BCP) based on our policy of maximum priority on humanlife and quickly restoring business operations. Taking into account our response to the Kumamoto
Earthquake that struck in April 2016, we created a manual in order to carry out disaster relief andreconstruction assistance in an organized manner, including providing transport of public relief
supplies. We will continue to make changes and improvements to our BCP to prepare for futureearthquakes directly under the Tokyo Metropolitan Area and in the Nankai Trough, which are likely
to occur in the future and expected to cause large-scale damages.

28

Efforts for Customers● Improvement of Response Quality
Yamato Transport constantly works to enhance service quality
by training and educating employees on how to improvetheir level of customer service. Yamato Transport also holds
a customer service contest regularly. This involves assessing
and awarding the customer service (facial expression, gestures,way of talking, choice of words, etc.) of Sales Drivers andGuest Operators who meet customers at TA-Q-BIN Centersand other locations on a daily basis in terms of their productknowledge and communication skills.

Efforts for Partners● Communication with TA-Q-BIN

Service Partners

Our Sales Drivers make daily visits to service partners
and collect parcels. We also issue the information
magazine “Kuroneko-Dayori” to general service partners
such as liquor and rice shops.
Information
magazine“Kuroneko-Dayori.”

TA-Q-BIN Service Partners

About210,000
stores(fiscal 2016)

2nd Sales Driver Customer Service Contest

4th Operator Customer Service Contest● Improvement of Work Quality

Efforts for Shareholders and Investors

Yamato Transport holds an in-house contest to improve
the work quality of employees sorting parcels at Logistics
Terminal across Japan and to increase their motivation.
This contest includes a competition of sorting speed,
accuracy and handling of parcels, a presentation on ideas
for improving operational quality being incorporated ateach office, and an awards ceremony.

TOPICS● Appropriate and Fair Information Disclosureand Enhancement of Communication

2nd Logistics Terminal Quality Skills Contest

We publish an annual report and a booklet for individual
shareholders to actively disclose information. We also
conduct earnings presentations 4 times per year, as well
as overseas briefings for institutional investors in Japan,
North America, Europe, and Asia.

● External Evaluation of ESG

Launch of Robo Neko Yamato Project
In April 2017, Yamato Transport initiateddemonstration testing jointly with DeNA Co., Ltd.
for the development of a next-generation logistics
service utilizing autonomous driving. The nameof the project is Robo Neko Yamato. The projectis scheduled to last for one year until March 2018.
This project will combine DeNA’s service designknow-how for autonomous driving solutions using

29

The Yamato Group actively promotes environmental,social and governance (ESG) initiatives. As a result of ourinitiatives, we were selected for inclusion in the SNAM
Sustainability Index for fiscal 2017, which is administeredby Sompo Japan Nipponkoa Asset Management Co., Ltd.

IT with Yamato Transport’s logistics network tocreate a logistics service that is more convenientand more in tune with today’s open lifestyles.

Annual report

Individual Shareholder newsletter

30

Efforts for Communities● Yamato Transport Business

Efforts for Employees● Music TA-Q-BIN “Kuroneko Family● Promoting Work-Life Balance

Yamato Transport has held business seminars for highschool students every year since 2006 in order to broaden
the perspectives of students and teach them about theirinvolvement in society so that they can make their own
decisions about their future paths. In fiscal 2016, a total of
18 teams and 81 high school students participated.

We initiated the Kuroneko Family Concert series in 1986
with the hope of bringing authentic, great music to the peopleof all ages across every region in Japan. The year 2015
marked the 30th anniversary of this series. As of 2015, wehave held concerts on 302 occasions, with cumulative
attendance of about 440,000 people.

As of July 2017, three of our companies have received
the above certification as “a company that actively supports
the balance between work and family life” from the Ministryof Health, Labour and Welfare.
Companies Certified● Yamato Management Service (2015)● Yamato Logistics (2013)● Yamato System Development (2011)

Cumulative Total Number of Participants

Number of Visitors

Number of Employees Who Took Childcare Leave

Seminar for High School Students

381

2014

13,818

2014

476

2015

Concert”

15,0082015

557

2016 is the eleventh year
the business seminar
was held

persons(fiscal 2006 to fiscal 2016)● Children’s Traffic Safety Workshop
Yamato Transport holds traffic safety workshops acrossJapan to educate children in the community about traffic
rules and the importance of traffic safety. Since 1998,
these workshops have been held a total of 27,871 times,
with a total of about 2,900,000 children having participated.

527

2014

610

2015

715

personsof these, 21 were male

2016

2016

2016

“Kurumin” Next-Generation
Certification Mark

(fiscal 2016)2016 is the thirty-first year
the concert was held

11,588About

persons(fiscal 2016)

Cumulative Total Number of Participants

2,900,000
About

persons(fiscal 1998 to fiscal 2016)

Number of Employees Who Chose
Short-Time Working for Childcare

Number of Employees Who
Took Nursing Care Leave

persons

persons

570

33

Number of Employees Who Chose
Short-Time Working for Nursing Care42

personsof these, 14 were maleof these, 15 were maleof these, 27 were male(fiscal 2016)(fiscal 2016)(fiscal 2016)● Encouraging Diversity● Encouraging the Hiring of People

We held the Female Leaders Meeting for female employees
who have been with the company at least five years to help
them establish their own unique leadership style and to drawout their skills and appetite for success.

We are endeavoring to make workplaces more accessible
to all employees through barrier free designs, and people
with disabilities make up 2.15% of our workforce.

with Disabilities

Number of Employees with Disabilities● Support for Economic Independence

for People with Disabilities

Through the Yamato Welfare Foundation, we are carrying out
a variety of initiatives to assist the preparation of economic
independence. We operate a total of 29 Swan Bakery outlets
across Japan that employ 366 people with disabilities.

31● Training Matched to Career Plans
We conduct a variety of training programs, including Junior
Leader School, intra-group job rotation, global humanresources communication training, and training on our
corporate philosophy.

2,310

persons(fiscal 2016)32

Initiatives of the Yamato Welfare Foundation

The Yamato Group’s Global CSR Activities

We Are Supporting the Independence
and Social Participation of People
with Physical and Mental Disabilities.

We Are Expanding Our CSR Activities Around
the World to Be a Company Most Loved andTrusted by Society.

The Yamato Welfare Foundation was established in 1993 by the late Masao Ogura,the father of TA-Q-BIN. Since then, it has supported the independence of people
with disabilities through a variety of programs.

The Yamato Group has operations not only in Japan and Asia, but also in Europe and North
America. We are committed to carrying out CSR activities that take into account the uniquesituation of each region and community.

Power Up Forum for People
with Disabilities

Yamato Self-Support Center’s Work Transition
Support Program

The Power Up Forum is held as a venue for thinking about the possibilities
of a new form of welfare that supports the economic independenceof people with disabilities together with presenters and for presenting
reports about good practices being implemented across Japan.

This program supports the independence of participants, from acquiring
the necessary knowledge and skills needed for employment, finding
employers, and establishing good practices after hiring so that they canwork with a sense of excitement and passion.

EuropeSociety

Yamato Transport Europe B.V. provided
a work experience program for juniorhigh school students attending
a Japanese school in Amsterdam.

USA

Society

Yamato Transport U.S.A., Inc.
transported the equipment needed fora sports day held at a Japanese school
free of charge.

China

Safety"Bridge to Dreams(Yume E No Kakehashi)" School

Kuroneko DM Mail Delivery Business Staffedby People with Disabilities

This group training for welfare facilities encourages action be taken toward
establishing a new form of welfare that supports the economic
independence of people with disabilities. It is a two-year program that ismainly held in the form of group retreats.

This program serves as an intermediary for Yamato Transport’s Kuroneko
DM Mail Delivery Business as part of the company’s efforts to provide
job opportunities for people with disabilities to play a role in the local
community.

Yamato (China) Transport Co., Ltd.
provided safety training to children
attending a kindergarten for Japanesenationals in Shanghai to raise theirawareness about safety.

Welfare Subsidy Program for People with
Disabilities

Presentation of the Masao Ogura Award
by Yamato Welfare Foundation

This subsidy geared mainly toward facilities and groups for people withdisabilities helps to increase the wages of people with disabilities. It also
provides scholarships to students with disabilities.

Every year two people are selected to receive this award in recognitionof their significant contributions to supporting the independence of people
with disabilities by actively working to create and expand work and job
opportunities as well as improve working conditions for people with disabilities.

Hong Kong

Society

Yamato Logistics (HK) Ltd. participates inthe events of a Japanese school every year.
In fiscal 2016, these events included a safetyclass for parents and students as well as
sales of Japanese agricultural produce.

Singapore

SocietyThirty-three employees from Yamato
Transport (S) Pte. Ltd. participatedin a charity event to benefit the elderly
and people with disabilities.

Malaysia

SafetyYamato Transport (M) Sdn. Bhd.
provides safety education to children
at the Safety Championship Carnival
held every year.

For more information, please visit the following website: Yamato Welfare Foundation: https://www.yamato-fukushi.jp/
3334