Yamato Group Corporate Social Responsibility Report 2018

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

Contents

Message to Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
CSR Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Feature article 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Initiatives for Working Style Reforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Connecting the Future with Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

ESG Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Policy and Commitment on ESG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ESG Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Governance/Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Editorial Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

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We Are Committed to Becoming a Company
Most Loved and Trusted by Society
Yutaka Nagao
Representative Director,
President and Executive Officer Yamato Holdings Co., Ltd.

Since our founding, the Yamato Group has achieved growth by providing valuable services that address newneeds born from the changing times, driven by its constant focus on the demands and expectations of its
customers and society. There is no mistaking that the foundation of our growth is marked by the sounddevelopment of society and the relationships of trust built with stakeholders.
Having reached the milestone of our 100th anniversary, the Yamato Group has begun working on reforms
aimed at future growth. In the next 100 years, I believe that a company's involvement and solutions toenvironmental and social issues facing the world will be critical. The Yamato Group, which has been fosteredby its stakeholders to become a company that serves as an important component of social infrastructure, willcontinually identify its responsibilities to society and carry out activities to live up to everyone's trust.
Therefore, first we will identify material issues after correctly understanding the impacts our business activities
have on the environment and society. Next, through our businesses, we will strive to solve international issues
and attain targets set out in the Paris Agreement and Sustainable Development Goals.
As a company leading the development of a sustainable society, the Yamato Group focuses on management
in harmony with the environment. We will pursue environmentally friendly logistics, and in particular use
energy and resources more efficiently in transport and at our facilities, as well as provide products andservices that reduce environmental impacts. Through these measures we aim to realize a low-carbon andresource recycling society.
The Yamato Group's most important asset is our 220,000-strong workforce. I believe that a core aspect ofmanagement is providing a safe work environment where all employees can recognize each other's
contributions and feel a sense of job satisfaction. As a result, these measures form one of the most important
aspects of our medium-term management plan called KAIKAKU 2019.
In addition, our businesses are built atop cooperation with various business partners. Through positive
communication with these stakeholders, we are carrying out business activities across the entire supply chainthat pays due consideration towards the environment, human rights, and labor practices.

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In April 2014, the Yamato Group signed the UN Global Compact, an international initiative, as part of the
globalization of its business activities. Since then we have stated our commitment to uphold the 10 principles
across the four areas of human rights, labor, environment and anti-corruption. We are now carrying out
management closely in tune with these principles.
I stand committed to addressing various environmental and social issues with a responsibility to thesustainable growth of the Yamato Group and society. I will focus on corporate management that paves theway for the future in order to be a company that will be continually chosen by stakeholders.
Yutaka Nagao
Representative Director, President and Executive Officer Yamato Holdings Co., Ltd.

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* CSR: Corporate Social Responsibility

CSR Vision
As a company that provides an important public service and grows together with society, the Yamato Groupaims to become a company most loved and trusted by society.
With the company precepts established in 1931 as a foundation, we formulated the Yamato Group Corporate
Philosophy comprising the management philosophy, corporate stance, and employee code of conduct.
The Yamato Group's CSR vision entails achieving sustainable growth together with society by realizing ourmanagement philosophy through our corporate stance cited in the Yamato Group Corporate Philosophy andour own individual actions as a member of society.

CSR Promotion System
We have established a dedicated department at Yamato Holdings for overseeing the entire Group's CSR
promotion efforts. In addition, CSR managers are appointed at each Group company to promote CSR
activities across the entire Group.
The Global Environmental Committee comprised of CSR managers from major Group companies convenes
quarterly to share information and discuss a wide range of issues covering not only the environment, butsociety in general. Important items are then reported to the Management Committee or Board of Directors forfurther discussion and resolution, when needed.

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Main Areas of Initiatives
The Yamato Group's initiatives focus predominantly on safety, environment, and society given the uniquenature of its business and impacts on society.
Please see each section below for details of our initiatives.

Initiatives to Achieve the SDGs
The Yamato Group supports international
initiatives for building a sustainable society.
Toward this end, we became a signatory of the
UN Global Compact in April 2014.
The Sustainable Development Goals (SDGs)
adopted by the UN in September 2015 represent
a set of common targets for the international
community to achieve together by 2030. The
Yamato Group is now working through its
businesses to solve the many urgent social
issues facing the world indicated in the SDGs.
Note:Our main initiatives in safety, environment and society are presented on each page related to their corresponding SDGs.

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Feature article 2018

The Yamato Group's Greatest Asset is its People. Our Goal is to Develop a Workplace Where
Each and Every Employee Can Thrive to Ensure We are the Clear Choice of Customers.
Promoting Working Style Reform Initiatives
as a Top Priority for Strengthening Our
Management Foundation
In September 2017, we established a new medium-term
management plan called KAIKAKU 2019 for NEXT100,
with the goal of becoming a company capable ofsustainable growth into the future by firmly maintaining
its business foundation centered on the TA-Q-BIN
business, which has become a critical aspect of social
infrastructure, in response to the rapid changes in social
environment and diversifying needs of society as of late.
The focal point of the Yamato Group's management
under this plan is working style reforms.

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The Yamato Group's greatest asset is its workforce
numbering around 220,000 people. By building a soundworking environment together with employees where
everyone can take pride in their work and feel
comfortable and a sense of purpose, we will be able tocontinually provide even better services to ourcustomers. On this our 100th anniversary, these reforms
are essential for the Yamato Group's sustainable growthover the next 100 years. We are now working on anumber of initiatives aimed at this.

To ensure employees are comfortable and feel a senseof purpose, we must not only make changes to ourpersonnel system and working environment, but alsoenhance employee training, promote diversity, andreview our services and operations.
Toward this end, the Yamato Group will combine efforts
at the Group-wide level and efforts tailored to the uniquetraits of each operating company, under three basic
policies. This will accelerate reforms across the entire
Group and further enhance our competitiveness.

We will secure a labor force by making our personnel system more attractive to a diverse pool of talent.
Drastically reduce total working hours
We will reduce the overtime work of full-timers by 50% and significantly cut back on overtime work of part-timers.
Adopt personnel systems that enable working styles tailored to an individual's stage of life
We will build systems where employees can choose their working hours, days off and compensation system.
Develop programs that enable part-time employees (temporary and permanent) to enhance their abilities
Promote work-life balance
We will encourage employees to take annual paid leave, promote use of the work interval system, and expand
childcare assistance programs, etc.
Enhance organizational structure that reaches every employee-7-We will increase employee involvement in management to create pride and purpose in their work, by redeveloping
training systems and introducing evaluation systems that assess independence and autonomy and enable employees
to thrive.
Establish an educational system centered on Kuroneko Academy
We will establish a rank-based training system and develop the leaders of tomorrow.
Set up a framework for leveraging the opinions of employees in management
Encourage the active role of overseas, elderly, and female employees through the further promotion ofdiversity
Realize an employment ratio for persons with disabilities of 2.5%

We will expand open-type parcel lockers called PUDO (Pick Up & Drop Off) Station, enhance efficiency of pickup anddelivery operations through the 8th NEKO System, and fully leverage technologies such as AI and robotics tothoroughly streamline operations that are the foundation of a comfortable workplace.

Yamato Group
Establishment of Working Styles
Innovation Committee
We established the Yamato Group Working Styles
Innovation Committee, which is chaired by thepresident of Yamato Holdings, in April 2017 with theaim of moving forward with reforming working styles
on a Group-wide basis. The committee has laid out"observance of compliance," "promotion of diversity,"and "work process revision and enhancement andcommunication" as its three main principles and is
promoting efforts to realize these principles throughcollaboration between management and labor unions.

As of March 2019-8-

The Yamato Group is implementing the following main initiatives for reforming working styles.

To manage working hours in an easy-to-understand and highly transparent manner, Yamato Transport transitioned fromrules stipulating that working hours be managed via mobile terminals to rules that establish the time employees arriveat and leave the office as their working hours. Starting from August 2017, the time employees start and finish work has
been digitized and determined by registering building entry and exit times via a tablet device.

To strengthen the foundation of the Delivery Business through such means as maintaining and improving the quality ofservices we offer our customers, recruiting new talent, and cultivating our employees, we reorganized the management
structure of our regional branches, which act as the core of our regional management across Japan. Through thisreorganization, we established 17 new regional branches.

With the aim of supporting career development, theYamato Group has held the Female Leaders Meeting—aGroupwide program that encourages female employees
to achieve self-fulfillment—a total of nine times, with 260
employees participating. The meeting gives participantsa chance to consider their own career path and helps
enhance their motivation. In addition, the Group
conducts training for the supervisors of meeting
participants to teach ways to develop the careers offemale employees, which heightens the program's
effectiveness.
Female Leaders Meeting-9-The Yamato Group holds panel discussions at all Group
companies on a continuous basis in order to realize
even better working styles. These discussions provide
an opportunity for the Group's president and executive
officers to directly communicate the purpose and vision
behind "Reforming Working Styles" to Group employees.
At the same time, these discussions allow employees on
the front lines to directly communicate their opinions andproposals for improving work processes to the president
and executive officers.
Panel discussion

To ensure employees have ample time for their private life and sleep, and to establish a working environment that
promotes work-life balance, Yamato Logistics, Yamato Transport, and other Group companies have introduced asystem whereby employees are required to take a certain amount of time off between their checkout time and their
check-in time the following day.

Yamato Transport has revised its process for promoting full-time sales drivers to permanent employees with the aim ofestablishing a working environment that offers employees peace of mind and securing human resources on acontinuous basis. Up until now, employees were hired as contract workers and promoted to permanent positions after
going through an in-house "challenge" system, a process that took approximately two years. Yamato Transport hasrevised this process and is now hiring new talent immediately as permanent employees.

To reform the working styles of its sales drivers and secure its pickup and delivery capacity, Yamato Transport has
implemented a personnel system for "Anchor Cast" employees (drivers for early evening and night deliveries).

To create a working environment where employees can work with even greater peace of mind, Yamato Transport has
introduced a system that allows full-time employees on fixed-term contracts who have worked continuously for overthree years to transition to permanent employment contracts ahead of the five-year period designated by law. Thissystem can also be used by part-time employees on fixed-term contracts who have met certain requirements under
Yamato Transport's internal "step up" system.** A system that evaluates employees' individual skills and approach to work and promotes them to higher positions in accordance with their level ofgrowth.

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To establish an environment in which employees can continue to work with peace of mind, Yamato Transport has
introduced a system that targets employees who wish to limit their number of work days and work hours because of
personal circumstances such as raising children, providing nursing care, or managing the loss of physical strength due
to aging. Under this system, employees can choose the number of hours they work in a day, anywhere from four toeight. In addition, these employees can select the number of days they work in a week, which includes the option ofworking only three or four days a week.

Yamato Transport has begun remodeling workplaces inorder to provide all employees with an even more safe,
secure and comfortable working environment.
Standards have been established for remodeling workon restrooms, breakrooms and changing rooms at all
center buildings. Efforts are now underway to make theworkplace even more comfortable for all employees.

Breakroom

We introduced Neopost's CVP-500 Automated Packing
Solution at the Atsugi Gateway, which helps to provide
seamless service support from materials procurement topackaging and shipment. This in-line autopacker
automates all tasks from packaging to label issuanceand attachment, which is about 10 times moreproductive than conventional manual packaging work.
We will actively use digitalization and automation to
improve productivity and enable working style reforms.

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PUDO (Pick Up & Drop Off) Station is an open-typeparcel locker that customers can use at theirconvenience to easily pick up or ship parcels. Since
launching the service in 2016, we have continued to
expand its locations at railway stations and commercial
facilities.
In March 2019, our network of PUDO Stations reachednearly 4,000. These lockers also contribute to working
style improvements by providing greater convenienceand usability to suit customers' diverse lifestyles andmaking the delivery work of employees even more
efficient.

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Feature article 2018

Rethinking Working Styles and Promoting
Business and Management Reforms Aimed at
Sustainable Growth
The goal of our new medium-term management plancalled KAIKAKU 2019 for NEXT100 is to reinforce the
Yamato Group's management base in order to achievesustainable growth over the next 100 years. At the sametime, we established a new long-term vision for 2025 aswell.
We will now build a sustainable business model aimed ataddressing social issues in order to achieve continuous
growth despite major changes taking place in thebusiness climate.
Click here to find out more about our new medium-term
management plan called KAIKAKU 2019 for NEXT100
http://yamato-hd.co.jp/english/investors/financials/briefing/pdf/
E_3q_kaikaku_29_03.pdf- 13 -

Addressing Labor Shortages and the Need to Reduce CO2 Emissions through More EfficientTrunk Route Transport
Changes in Japan's demographics have resulted in labor shortages in a number of industries. In the logistics industry,
due to aging there is now a shortage of large truck drivers mainly on trunk routes. In addition, with the adoption of theParis Agreement in 2015, there is growing worldwide momentum to reduce CO2 emissions.
Based on these social issues, we decided to become the first in Japan to introduce a 25-meter double-trailer truck in
September 2017 for more efficient trunk routes. In 2016, we began using 21-meter double-trailers and 18-meter singletrailers in an effort to make trunk route transportation even more efficient. The new 25-meter double-trailers introduced
in 2017 can carry twice the cargo amount of conventional large trucks. By being able to carry more on a single truck,we will be able to address driver shortages and reduce CO2 emissions.

Nicknamed "Connect"
This nickname symbolizes theconnection between the truck
and trailer along withconnecting people, goods andcities together to connect theentire logistics industry
through cooperative transportwith other companies.

Capable of Transporting Cargos of Multiple Transport Companies at the Same TimeOur 25-meter double-trailer trucks can be connected to the trailers of other transport companies for seamless transport.
Driver aging and shortages are major issues faced not only by the Yamato Group, but the entire logistics industry. The
introduction of these double-trailers will contribute to the sustainability of the entire logistics industry, transcending
barriers between transport companies.

Achieving Smooth Deliveries by Linking the Use of RFID* with Our Vehicle Booking System
Today, the long wait time truck drivers face at the time of delivery has become a social issue. This is because deliveries
are made in order of arrival at the facility, and the receiving inspections are performed manually with visual confirmationor paper records.
Aimed at resolving these issues, Yamato Group Research Institute developed a workflow solution for achievingsmoother, more efficient deliveries through a partnership with industry groups such as logistics association, toiletries
makers, and Yamato Logistics.
The key point for achieving efficient deliveries is visualizing information (ASN data) about which product is located on
which pallet in which truck and then sharing this data with shippers, drivers and receivers. This makes it possible tocoordinate receiving schedules by assigning priority at the delivery location.

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We introduced RFID* tags and a vehicle booking system in order to achieve these more efficient deliveries. RFID tags
are affixed to pallets, products and trucks to create ASN data that connects all of them together. By sending this data toreceivers in advance, they can determine the priority of trucks waiting in line and complete inspections smoothly bysimply scanning the RFID tags.
* RFID: A technology for contactless reading of data from an IC chip using electromagnetic fields.

This new workflow will enhance productivity of receiving work and receiving inspection operations, while also improve
the work environment. In addition, the use of RFID tags will help ease workload during shipping inspections and reduce
mistakes caused by human error. Moreover, reduced idling time will lower CO2 emissions and ensure a safe andsecure living environment for local residents.
The effects of this new workflow were validated in real life testing with Lion Corporation in 2017. We are now
conducting further reviews aimed at full commercialization in the near future.

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The Yamato Group uses public roads as an important part of its major business operations.
Therefore, we recognize that community safety represents one of our most important duties. With our
motto of safety first, we are steadily implementing measures for safety in transportation and always
give top priority to respecting human life during the course of our operations.

Our Initiatives
Details of each initiative can be found on our Japanese language website.

Click here for details(Japanese language webpage)

Click here for details(Japanese language webpage)

Click here for details(Japanese language webpage)

Relevant SDGs

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Click here for details(Japanese language webpage)

The Yamato Group established the Environmental Protection Declaration and has promoted various
initiatives to address climate change and resource recycling issues, both of which are important fordeveloping a sustainable society. Through logistics that mitigates CO2 emissions to the promotion ofrecycling and development of resource-saving packaging, we are contributing to the realization of alow-carbon society and resource-recycling society.

Our Initiatives
Details of each initiative can be found on our Japanese language website.

Click here for details(Japanese language
webpage)

Click here for details(Japanese language
webpage)

Click here for details(Japanese language
webpage)

Click here for environmental data

Relevant SDGs

- 17 -

Click here for details(Japanese language
webpage)

Click here for details(Japanese language
webpage)The Yamato Group established the Environmental Protection Declaration and has promoted various
initiatives to address climate change and resource recycling issues, both of which are important fordeveloping a sustainable society. Through logistics that mitigates CO2 emissions to the promotion ofrecycling and development of resource-saving packaging, we are contributing to the realization of alow-carbon society and resource-recycling society.

Our Initiatives
Details of each initiative can be found on our Japanese language website.

Click here fordetails (Japanese
language webpage)

Click here fordetails (Japanese
language webpage)

Click here fordetails (Japanese
language webpage)

Relevant SDGs

- 18 -

Click here fordetails (Japanese
language webpage)

Click here fordetails (Japanese
language webpage)

Click here fordetails (Japanese
language webpage)UN Global Compact
For details, please see the Participation in the UN Global Compact webpage.

Core Values
For details, please see the Core Values webpage on the Yamato Group website.

Yamato Corporate Philosophy (Management Philosophy, Corporate
Stance, and Employee Code of Conduct)
For details, please see the Yamato Corporate Philosophy webpage on the Yamato Group website.

Statement of Compliance
For details, please see the Corporate Governance webpage on the Yamato Group website.

Information Security Assurance Policy
For details, please see the Policy and Statement on ESG (Japanese language webpage) on the YamatoGroup website.

Diversity Policy
For details, please see the Policy and Statement on ESG (Japanese language webpage) on the YamatoGroup website.

- 19 -Yamato Group Health Declaration
For details, please see the Policy and Statement on ESG (Japanese language webpage) on the YamatoGroup website.

Environmental Protection Declaration
For details, please see the Policy and Statement on ESG (Japanese language webpage) on the YamatoGroup website.

Policy on Management of Pension Assets
For details, please see the Policy and Statement on ESG (Japanese language webpage) on the YamatoGroup website.

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Human Resources Data
Employees
Item

Details

Number of employees(persons)
Number of employees by
employment format(persons)

Number of employees bybusiness (persons)

Number of managers(persons)

Fiscal 2015

Fiscal 2016

Total

196,582

201,784Men

127,285

130,604

Women

69,297

71,180Full-time

89,112

90,737Part-time

107,470

111,047

Delivery Business

175,460

180,716

BIZ-Logistics Business

5,824

5,962

Home Convenience Business

5,246

5,067

e-Business

4,925

4,586

Financial Business

852

851

Autoworks Business

2,040

2,164

Other businesses

2,235

2,438

Total

5,238

5,636

Men

5,401

5,399

197

237

Number (persons)

2,317

2,310

Ratio (%)

2.19

2.15

Details

Fiscal 2015

Fiscal 2016

Fiscal 2017

Response rate (%)

28.9

35.2

77.6

Rate of respecting diversity
(%)

41.7

46.2

61.2

Rate of fairness and equality(average score out of 5)-

Men 3.83
Women 3.53

Men 4.04
Women 3.93

Rate of contribution (averagescore out of 5)-

Men 3.91
Women 3.73

Total satisfaction in
workplace comfort (averagescore out of 5)-

Men 3.43
Women 3.55

Consolidated
Men 4.09 companies in
Women 3.99 Japan and Swan
BakeryMen 3.91
Women 3.98

Total satisfaction in
workplace motivation(average score out of 5)-

Men 3.55
Women 3.56

Men 3.84
Women 3.88

Women
Number/Ratio of
employees with disabilities

Fiscal 2017

Scope

213,096 Consolidated
companies inside
136,530and outside
76,566 Japan
93,534 Consolidated
companies inside
119,562 and outside
191,433 Japan
6,253 Consolidated
companies inside
4,937
and outside
4,890 Japan
828 Consolidated
companies inside
2,176
and outside
2,579 Japan
6,137 Consolidated
companies inside
5,800
and outside
337 Japan
2,416 Consolidated
companies inJapan and Swan
2.14
BakeryEmployee Engagement
Item*

Working style survey

Scope* Fiscal 2015 and fiscal 2016 responses were for the diversity survey. Partial changes were made to questions in 2016. The current survey
has been used since fiscal 2017.

Click here for related articles (Japanese language webpage)- 21 -

Diverse Working Styles
Item
Number of employees who
took childcare leave(persons)
Number of employees whochose short-time working
for childcare (persons)
Number of employees who
took nursing care leave(persons)
Number of employees whochose short-time working
for nursing care (persons)Details

Fiscal 2015

Fiscal 2016

Fiscal 2017

Total

610

715

Men

41

21

Women

569

694

Total

474

570

Men

9

14

Women

465

556

Total

25

33

Men

9

15

Women

16

18

Total

29

42

Men

13

27

Women

16

15

Fiscal 2015

Fiscal 2016

Scope

766 Consolidated
companies in
25Japan and Swan
741 Bakery
586 Consolidated
companies in
16Japan and Swan
570 Bakery
35 Consolidated
companies in
17Japan and Swan
18 Bakery
50 Consolidated
companies in
32
Japan and Swan
18 Bakery

Click here for related articles (Japanese language webpage)Occupational Health and Safety and Health Management
Item

Details

Number of serious occupational injuries*1 (incidents)

Number/Ratio of
employees receiving a
stress check

Ratio of receiving specifichealth checkups*2

Ratio of completing specifichealth guidance*2

Ratio of employees
receiving breast cancer
screenings*3

Health management
certification system(companies with healthdeclaration)*4

Fiscal 2017

Scope

Consolidated
companies inside
1 and outside
Japan and Swan
Bakery00Number (persons)--Ratio (%)--

Employees only (%)

98.6

98.4

Including dependents (%)

84.6

84.8

Employees only (%)

79.0

84.0

Including dependents (%)

75.6

79.4

-

135

Number (total for bus andhospitals) (persons)

5,856

6,748

Ratio (total for bus andhospitals) (%)

40.1

45.2

Number of companies withhealth declaration(companies)

-

-

20

Number of companies withgold certification (companies)--

Number of companies withsilver certification(companies)

Business sites
covered by the
2 Yamato Group
Health InsuranceSociety--

Number of locations servedby health checkup bus(locations)- 22 -

102,697 Consolidated
companies inJapan and Swan
88.3
BakeryBusiness sites
97.5 covered by the
Yamato Group85.3 Health InsuranceSocietyBusiness sites
85.0 covered by the
Yamato Group
80.6 Health InsuranceSociety156

Business sites
covered by the
Yamato Group
10,510
Health InsuranceSociety
46.7

12*5

*1 Incident involving a fatality*2 Employees age 35 or older and dependents age 40 or older are eligible*3 Total checkups on bus/at hospitals (employees age 30 or older are eligible)*4 Organized by the Health Declaration Companies Tokyo Promotion Council*5 Of these, two companies overlap with gold certification

Click here for related articles (Japanese language webpage)

Safety in Transportation
Item

Details

Fiscal 2015

Fiscal 2016

Fiscal 2017

Consolidated
companies inside
4 and outside
Japan and Swan
BakerySerious traffic accidents*1 (incidents)

7

4

Number of Safety Experts (persons)

337

349

9,040

8,034

9,159

Convenience*2

192

222

176

Yamato Global Express*3

108

130

172

Okinawa Yamato Transport*4

45

35

20

Yamato Multi Charter*5

41

24

38

Yamato Box Charter*6

104

136

128

Yamato Transport*2
Yamato Home
Number of long-running noaccident commendation
awardees (persons)

Scope

Consolidated
365 companies in
Japan

-

*1 Traffic accidents involving a fatality. Including no-fault accidents*2 Number of years or distance driven without an accident: 25 years or 2.7 million km (Diamond Award), 18 years or 1.9 million km (GoldAward), 8 years or 800,000 km (Silver Award), 5 years or 500,000 km (Bronze Award), 2 years or 200,000 km (Safety Driver Award)*3 Number of years without an accident: 25 years (Diamond Award), 18 years (Gold Award), 8 years (Silver Award), 5 years (Bronze Award),
2 years (Safety Driver Award)*4 Number of years without an accident: 2 years, 5, years, 8 years, 18 years, 25 years*5 Number of years without an accident: 5 years, 10 years, 15 years, 20 years, 25 years, 30 years, 35 years*6 Number of years without an accident: 2 years, 5 years

Click here for related articles- 23 -

Social Contribution Activities Data
Social Contribution Activities
Item

Details

Fiscal 2015

Fiscal 2016

Fiscal 2017

9

9

9

Number of participants in FY(persons)

15,008

11,588

9,667

Cumulative total number oftimes implemented (times)

302

311

320

Cumulative total number ofparticipants (persons)452,066

463,654474,635

Number of times
implemented in FY (times)

1,983

1,754

1,440

Number of participants in FY(persons)

213,467

184,353

168,214

Cumulative total number oftimes implemented (times)

26,117

27,871

29,311

Cumulative total number ofparticipants (persons)

2,802,852

2,987,205

3,155,419

Number of times
implemented in FY (times)

204

128

110

Number of participants in FY(persons)

15,820

9,236

8,636

Cumulative total number oftimes implemented (times)

2,993

3,121

3,231

Cumulative total number ofparticipants (persons)222,743

231,979

240,615

Fiscal 2015

Fiscal 2016

Fiscal 2017

1,770

1,928

2,087

529

604

648

319

364

394

Number of times
implemented in FY (times)

Music TA-Q-BIN (1986 -)Children's Traffic Safety Workshop (1998 -)*1

Kuroneko Yamato Environmental Class (2005-)*1*1 As of March 31 of each fiscal year
*2 Recipients were Yamato Welfare Foundation and NPO Ashinaga

Click here for related articles (Japanese language webpage)
Click here for more about Music TA-Q-BIN (Japanese language webpage)

Project G
Item
Total number of projects implemented or considered* (projects)
Of these, number being implemented* (projects)
Number of agreements concluded with local governments* (projects)* As of March 31 of each fiscal year

Click here for related articles (Japanese language webpage)- 24 -

Combined Passenger-Cargo Operations
RegionPartner

Date initiatedKyoto Prefecture

Keifuku Electric Railway Co., Ltd.

May 2011

Iwate Prefecture

Northern Iwate Transportation Inc.

June 2015

MiyazakiPrefecture

Miyazaki Kotsu Co., Ltd., Miyazaki Prefecture, Saito City, Nishimera Village, and Japan
Post Co., Ltd.

October 2015
June 2016

Meishi Bus Co., Ltd.

July 2016

Shibetsu Kido Co., Ltd.

July 2016

Tokachi Bus Co., Ltd.

July 2016

Kumamoto
Prefecture

Sanko Bus Co., Ltd.

October 2016

Hyogo Prefecture

Zentan Bus Co., Ltd.

June 2017

Hokkaido

Engan Bus Co., Ltd. and Teshio Town

September
2017

Nagano Prefecture

Iizuna Town and Nagaden Bus Co., Ltd.

October 2017

Wakayama
Prefecture

Arida Railway Co., Ltd. and Aridagawa Town

October 2017

Tokushima
Prefecture

Shikoku Kotsu Co., Ltd.

Aichi Prefecture

Toyoda City and Hoei Kotsu Co., Ltd.

Gifu Prefecture

Nagaragawa Railway Co., Ltd.

February
2018

Wakayama
Prefecture

WAKAYAMA ELECTRIC RAILWAY Co., Ltd.

February
2018

Oita Prefecture

Oita Transportation Co., Ltd., Oita Air Terminal Co., Ltd.

April 2018

Fukui Prefecture

FUKUI RAILWAY Co., Ltd.

August 2018

Nagano Prefecture

Aoki Village, Chikuma Bus Corporation

October 2018

Gunma Prefecture

Kan-etsu Transportation Co., Ltd.

October 2018

Hokkaido

November
2017
January 2018

(Note) Services provided by Yamato Transport (includes certain Group companies)

Click here for related articles (Japanese language webpage)- 25 -

Environmental Data
Climate Change
Energy(GJ)
2017
From fossil fuelsElectricity
Gasoline

5,421,041

From renewable energy

2,023

Offices

3,114

Transportation, etc.

301,094

Kerosene

43,967
Offices

Diesel oil

7,729

Transportation, etc.

7,787,640

OfficesHeavy oil A

2,268

Transportation, etc.

LPG
City gas

469

Offices

37,318Transportation, etc.

186,642

Offices

36,373

Transportation, etc.

342

Estimated energy usage

123,946

Total

13,953,964

Boundary: Consolidated companies in Japan and Swan Bakery (excluding benefits divisions)
For further information, please see the Calculation Method and Conversion Factors

CO2 Emissions (Scope 1 and Scope 2) and CO2 Emissions Intensity(Top: 1,000 tCO2, bottom: tCO2/operating revenue of 100 million yen)
2015

2016

2017

CO2 emissions

899

905

938

CO2emissions intensity

53.9

51.9

52.1

2017 CO2 Emissions Breakdown(1,000 tCO2)
2017

Scope 1

Energy-related

580

Non-energy related

77

Scope 2

280

Boundary: Consolidated companies in Japan and Swan Bakery (excluding benefits divisions)
Scope 3 total was 44,394 thousand tCO2. Category 7: Employee Commuting is calculated based on the number of employees andbusiness days per year. Therefore, the calculation takes into account a high volume of activities. The calculation method follows the
Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain, Japan's Ministry of the Environment andMinistry of Economy, Trade and Industry (Ver. 2.3). For further information, please see the Calculation Methods and Conversion
FactorsNote) Numbers are rounded; thus, the breakdown may not equal the total.

Click here for related articles (Japanese language webpage)- 26 -

Resources
Resources Input

(t)
2017

Vehicles and auto parts

7,925

Equipment and machinery

7,428

Paper

38,463

Containers and packaging

3,694

Other

0.1

Amount recovered

123

Boundary: Consolidated companies in Japan and Swan Bakery (excluding benefits divisions)
Vehicles include those purchased or leased.

Waste(1,000 t)
2017

2016
Amount recycled

25

37

Amount recovered

4

7

Amount incinerated

626

Final disposal amount

4

6

Total

39

76

Boundary: Consolidated companies in Japan and Swan Bakery (excluding Yamato Transport and benefits divisions; figures being
tabulated for Yamato Transport)
Waste includes general waste, industrial waste, and valuables.
For further information, please see the Calculation Methods and Conversion Factors

Green Procurement Rate

(%)
2016

Green Procurement Rate

2017
86.1

Boundary: Yamato Transport

Click here for related articles (Japanese language webpage)- 27 -

87.7

Water
Water Usage(1,000 m³)
2017

Surface water0

Underground water0

Rainwater

0.01

Tap water

4,173

Boundary: Consolidated companies in Japan and Swan Bakery (excluding benefits divisions)

Click here for related articles (Japanese language webpage)

Management
Compliance with Environmental Laws and Regulations
2017
Legal violations (incidents)

0

Fines and lawsuits (incidents)

0

Environmental accidents (incidents)

0

Leaks and pollution (incidents)

0

Total amount of fines (yen)0Boundary: Consolidated companies in Japan and Swan Bakery (excluding benefits divisions)

Environmental Accounting(Millions of yen)
2017

Category

Investment
amountGlobal environmental
conservation costs

Cost amount

12,418

41

Resource recycling costs

0619

Up/Downstream costs (green procurement andrecycling)

0

3,816

Management activity costs (greenery maintenance)

0

12

R&D costs

0111

12,418

4,599

Costs insidebusiness area

Total

Boundary: Yamato Transport
Reference: Environmental Accounting Guidelines 2005 published by Japan's Ministry of the Environment- 28 -

Corporate Governance Data
Officer Composition and Number of Board Meetings (as of March 31 each fiscal year)
Item

Number of directors

Number of Audit & Supervisory Board
members

Number of executive officers

Details

Fiscal 2015

Fiscal 2016

Fiscal 2017

Total

6

5

8

Inside435Outside

2

2

3

Men

6

5

7

Women

0

0

1

Total

4

4

4

Inside222Outside

2

1

2

Men

3

3

3

Women

1

1

1

Total

17

21

22

Men

17

20

21

Women

0

1

1

18

17

18

Number of board meetings (times)(Persons)
Scope

Yamato Holdings

See the following webpages for more details about other aspects of corporate governance.

Corporate Governance (Corporate Profile)
Securities Report (Japanese language webpage)
Shareholders Meeting Information (Japanese language webpage)

Compliance and Risk Management Indicators
Item

Fiscal 2015

Fiscal 2016

4

4

4 Yamato Holdings

157

101

102 Yamato Holdings

Compliance and Risk Management Committee
meetings (times)
Number of whistleblower reports/consults(reports/consults)

Click here for related articles- 29 -

Fiscal 2017

Scope

Certifications
GeneralCertification name
ISO9001

Company nameYamato Packing Technology Institute Co., Ltd.: Headquarters

Year acquired
2008

Yamato System Development Co., Ltd.
JIS Q 9001:2008/
ISO 9001:2008

Tokyo SLC, Tokyo Branch, Regional Sales Division

2008

System Solutions Company

2003

Shin-Tokyo IDC

2006

Yamato Logistics Co., Ltd.

JIS Q 9001:2015/
ISO 9001:2015

ISO14001

e-Logistics Solution Business

1997

Chiba Logistics System Center

1997

Shin-Tokyo Logistics System Center2005

Chubu Logistics System Center

2007

Inazawa Logistics System Center

2007

Osaka Logistics System Center

2007

Higashi Yodogawa Logistics System Center

2007

Osaka Minato Logistics System Center

2011

Haneda Logistics System Center

2014

Oi Logistics System Center

2005

Oi No. 2 Logistics System Center

2005

Haneda On-demand Center

2005

Yamato Packing Technology Institute Co., Ltd.: Headquarters

2008

Yamato Logistics Co., Ltd.
ISO13485

Medical Logistics Company

2006

Kanagawa Medical Center

2006

Tokyo Medical Center

2006

Kobe Yamato Transport Co., Ltd.: obtained by Osaka Office

2012

Yamato Multi Charter Co., Ltd.: obtained by all offices
Yamato Transport Co., Ltd.: obtained by 2,765 offices as of March 31,
2018
Excellent Safe Driving
Business Certification (GMark)

Okinawa Yamato Transport Co., Ltd.: obtained by 28 offices as of March
31, 2018
Yamato Global Express Co., Ltd.: obtained by 56 offices as of March 31,
2018

2016

Yamato Home Convenience Co., Ltd.: obtained by 43 offices as of March
31, 2018
Yamato Box Charter Co., Ltd.: obtained by 44 offices as of March 31, 2018FSSC 22000 (Food safety
management system)

PAS 1018:2017 (Indirect,
temperature-controlled
refrigerated delivery
services)

Yamato Transport Co., Ltd.: Haneda Chronogate Terminals

2017

Yamato Global Logistics Japan Co., Ltd.

2017

Okinawa Yamato Transport Co., Ltd.: Global Express Division

2017

Yamato Transport Co., Ltd.

2017

Okinawa Yamato Transport Co., Ltd.

2017

YAMATO (CHINA) TRANSPORT CO., LTD.

2017

YAMATO LOGISTICS (HK) LTD.

2017

YAMATO TRANSPORT (S) PTE. LTD.

2017

YAMATO TRANSPORT (M) SDN. BHD.

2017

Yamato 365 Express Co., Ltd.

2017

- 30 -

* PAS 1018 is an international standard for indirect, temperature-controlled refrigerated delivery services that involve the transshipment ofcargo. The standard defines requirements for transshipment work during transport, focused mainly on temperature controls such as theuse of refrigeration units on vehicles. With growing worldwide demand for refrigerated delivery services, this standard was established in
February 2017 with the involvement of businesses offering refrigerated delivery services in Japan, including Yamato Holdings, along withother organizations such as overseas industry groups.

Information Security
Certification name

JISQ 15001 (privacy mark)* Yamato Contact Service only
acquired JISQ 15001

ISO27001

Company nameYear acquired

Yamato System Development Co., Ltd.

1999

Yamato Financial Co., Ltd.

2006

Yamato Web Solutions Co., Ltd.

2007

Yamato Logistics Co., Ltd.

2010

Yamato Management Service Co., Ltd.

2011
(Updated in 2017)

Yamato Credit & Finance Co., Ltd.

2016
(Updated in 2018)

Yamato Contact Service Co., Ltd.*
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 Transport Co., Ltd.
Head quarters

2015

Haneda Chronogate

2017

Atsugi District Branch

2017

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

2004

Osaka IDC

2002

Contactless credit card data processing services for large-scale affiliate
stores2009

Credit card terminal installation application form acceptance center
operation

2012

CAT joint usage system

2013

Sorting and sending of account transfer request documents

2012

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

2015

Account transfer systems (development)

2015

Credit card terminal installation application form acceptance center
operation (development)

2015

Online application acceptance service

2015

Settlement NW

2015

settlement information DB

2015

Yamato Contact Service Co., Ltd.
- 31 -

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 Center

2015

Yamato Packing Technology Institute Co., Ltd.
Headquarters

2009

Yamato Logistics Co., Ltd.

ISO20000

Indirect Business Solutions Company

2005

Tokyo District Branch

2005

Saitama District Branch

2005

Confidential Document Secure Solutions Division

2016Tokyo Security Center

2016

Yamato Global Logistics Japan Co., Ltd.: Headquarters

2018

Yamato System Development Co., Ltd.

2006

Yamato System Development Co., Ltd.
PCI DSS

Credit card settlement service

2006

Web billing service

2011

Information security auditing
Yamato System Development Co., Ltd.
company registered- 32 -

2004

CO2 Emissions

Source for calorific value and emission factors used to calculate energy, Scope
1 and Scope 2 CO2 emissions
Appended Table 1 of the Ordinance for Enforcement of the Act on the Rational Use of Energy.
Appended Table 1 of the Order for Enforcement of the Act on the Promotion of Global WarmingCountermeasures.
City gas uses calorific value for each business site. Electricity uses emission factors for eachbusiness site from Ministerial Ordinance on Calculation of Greenhouse Gas Emissions Arising fromthe Business Activities of Specified Emitters. – FY2016 Results, the Ministry of the Environment
and Ministry of Economy, Trade and Industry.
Transportation, etc. for city gas includes fuel of CNG vehicles, etc. II-36 of Section II GHG
Emissions Calculation Methods of the GHG Emissions Calculation and Reporting Manual Ver.
4.3.2 for GHG Emissions Accounting, Reporting and Disclosure System was referenced.
Estimated energy usage includes estimates where the type of energy is unknown, such as theenergy used by building tenants, etc.
The Air Conditioning Energy Estimation Tool of the Energy Conservation Center, Japan was used
for calculation methods. II-33 of Section II GHG Emissions Calculation Methods of the GHG
Emissions Calculation and Reporting Manual Ver. 4.3.2 for GHG Emissions Accounting, Reportingand Disclosure System was referenced.
The calorific value used for electricity derived from renewable energy is 3.6 GJ/MWh.

Source for calculation methodology and emission factors used to calculate
Scope 3 CO2 emissions
Category 1: Purchased Goods and Services
Calculation formula, the spend-based method of the GHG Protocol's Technical Guidance for
Calculating Scope 3 Emissions (version 1.0). Calculated by multiplying the value of Yamato
Transport's purchased goods by the emission factors. For the emission factors, the Emission
Intensity Database for Calculating GHG Emissions of Organizations throughout the Supply Chain,Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry (Ver. 2.5) was
referenced.
Boundary: Yamato Transport (Japan) (Reference: Yamato Transport's Scope 1 and Scope 2
emissions account for about 80% of the total emissions of Yamato Group.)- 33 -

Category 2: Capital Goods
Calculation formula, the spend-based method of the GHG Protocol's Technical Guidance for
Calculating Scope 3 Emissions (version 1.0). Calculated by multiplying the capital expenditure
amount (vehicles, buildings, and loading equipment) by the emission factors. For the emission
factors, the Emission Intensity Database for Calculating GHG Emissions of Organizations
throughout the Supply Chain, Japan's Ministry of the Environment and Ministry of Economy, Tradeand Industry (Ver. 2.5) was referenced.
Boundary: Consolidated companies in Japan
Category 3: Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2
Calculation formula in the Basic Guidelines on Accounting for Greenhouse Gas Emissions
throughout the Supply Chain, Japan's Ministry of the Environment and Ministry of Economy, Tradeand Industry (December 2017, Ver. 2.3). Calculated by multiplying the input data for electricity by
the emission factors. For the emission factors, the Emission Intensity Database for Calculating
GHG Emissions of Organizations throughout the Supply Chain, Japan's Ministry of theEnvironment and Ministry of Economy, Trade and Industry (Ver. 2.5) was referenced.
Boundary: Consolidated companies in Japan
Category 4: Upstream Transportation and Distribution
Calculation formula, the spend-based method of the GHG Protocol's Technical Guidance for
Calculating Scope 3 Emissions (version 1.0). Calculated by multiplying transportation costs foreach type by the emission factors. For the emission factors, the Emission Intensity Database for
Calculating GHG Emissions of Organizations throughout the Supply Chain, Japan's Ministry of theEnvironment and Ministry of Economy, Trade and Industry (Ver. 2.5) was referenced.
Boundary: Yamato Transport (Japan)
Category 5: Waste Generated in Operations
Calculation formula in the Basic Guidelines on Accounting for Greenhouse Gas Emissions
throughout the Supply Chain, Japan's Ministry of the Environment and Ministry of Economy, Tradeand Industry (Ver. 2.3). Calculated by multiplying the outsourcing amount of waste processing andrecycling for each type by the emission factors. For the emission factors, the Emission Intensity
Database for Calculating GHG Emissions of Organizations throughout the Supply Chain, Japan's
Ministry of the Environment and Ministry of Economy, Trade and Industry (Ver. 2.5) was
referenced.
Boundary: Yamato Transport (Japan)
Category 6: Business Travel
Calculation formula in the Basic Guidelines on Accounting for Greenhouse Gas Emissions
throughout the Supply Chain, Japan's Ministry of the Environment and Ministry of Economy, Tradeand Industry (December 2017, Ver. 2.3). Calculated by multiplying the number of employees by theemission factors. For the emission factors, the Emission Intensity Database for Calculating GHG
Emissions of Organizations throughout the Supply Chain, Japan's Ministry of the Environment andMinistry of Economy, Trade and Industry (Ver. 2.5) was referenced.
Boundary: Consolidated companies in Japan- 34 -

Category 7: Employee Commuting
Calculation formula in the Basic Guidelines on Accounting for Greenhouse Gas Emissions
throughout the Supply Chain, Japan's Ministry of the Environment and Ministry of Economy, Tradeand Industry (December 2017, Ver. 2.3). Calculated by multiplying the number of employees by the
number of business days and the emission factors. For the emission factors, the Emission Intensity
Database for Calculating GHG Emissions of Organizations throughout the Supply Chain, Japan's
Ministry of the Environment and Ministry of Economy, Trade and Industry (Ver. 2.5) was
referenced.
Boundary: Consolidated companies in Japan
Category 8: Upstream Leased Assets
The Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain,Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry (December
2017, Ver. 2.3) was referenced. Calculated and reported under Scope 1 and Scope 2.
Category 9: Downstream Transportation and Distribution
The Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain,Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry (December
2017, Ver.2.3) was referenced. Calculated under Scope 1, Scope 2, and Upstream Transportation
and Distribution.

Waste

Boundary and scope of waste
Boundary: Consolidated companies in Japan and Swan Bakery (excluding Yamato Transport andbenefits divisions; figures being tabulated for Yamato Transport).
Waste includes general waste, industrial waste, and valuables.
Includes partially estimated figures (e.g., building tenant portion).

Environmental Accounting

Guidelines referenced for environmental accounting
Japan's Ministry of the Environment, Environmental Accounting Guidelines 2005

- 35 -

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

Corporate Governance
Based on its corporate philosophy, the Yamato Group carries out business activities in accordance with thelaw and social norms and actively promotes compliance management. Striving to maximize corporate value
by effectively utilizing the management resources of the Group is one of the top priorities of management, andwe work to bolster management systems and implement policies to this end.
For details, please see the corporate governance webpage on the Yamato Group website.

Compliance
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, 2018, with a report submitted to the Kanto Local Finance
Bureau.
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.
- 36 -

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.

Compliance and risk management framework

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)
As a group of companies that provides TA-Q-BIN services as social infrastructure, we established a business
continuity plan (BCP) to ensure we can continue to offer stable and consistent services even during
unforeseen situations. Based on our experiences from the Great East Japan Earthquake of 2011, we areworking to reinforce our crisis management structure across the entire Group based on various emergency
scenarios.

- 37 -

The Yamato Group BCP Basic Policy stipulates the three pillars of "prioritize human life," "aim for a quick
restoration of operations at each Group company" and "live up to expectations from local communities as a
key component of social infrastructure." Following this basic policy, we have established miscellaneous
standards common to the Group and compiled various manuals based on the unique characteristics of eachGroup company's business.
A BCP department and person in charge are in place at each Group company and a BCP division has been
set up inside Yamato Holdings to head up the Group's BCP efforts. During the occurrence of an emergency,
following certain criteria we set up an emergency response headquarters at Yamato Holdings (headed up by
the president) that works closely with relevant departments in charge from each Group company.
Every employee carries with them a disaster pocket card that contains actions to be taken in case of adisaster. Regular training is also held covering disaster scenarios. In addition, we have introduced a system toconfirm the safety of employees during a disaster.
We are now examining ways to reinforce our response to natural disasters, including large-scale earthquakes
or flooding caused by torrential rains, and looking broadly at ways to address the many risks that threaten ourbusiness continuity.

Information Security
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."
In 2016, we implemented our first campaign to raise awareness about information security across the entire
Yamato Group, including overseas subsidiaries. As part of this, each of our group companies carried out theirown unique measures for raising awareness based on their own situation.
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.
For details about certifications, please see the ESG Data Fields webpage.

- 38 -

The Yamato Group discloses information through various media in order to foster understanding and empathy
among the stakeholders listed in the Yamato Group Corporate Philosophy, including customers, employees,
partners, local communities, and shareholders, with regard to its CSR policies and initiatives.
This website provides comprehensive information on the Yamato Group’s CSR activities.

Main changes on the website from fiscal 2017
A new ESG data webpage was established containing our various policies and performance data on

CSR
The website's overall structure and content has been reviewed following the disclosure needs ofsociety

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 2017 (April 2017 - March 2018)
Performance data is as of the end of March 2018, unless noted otherwise. (Some information from before thetarget fiscal year and after April 2018 is included in reporting on activities.)

Scope of report
CSR activities of the Yamato Group.

Publication
February 2019 (scheduled next publication: August 2019)- 39 -