DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2Expansion of Corporate Business Domain
We view evolving growth of the EC (e-commerce) market and changes to the supply chain as an opportunity and provide comprehensive value to the “End to End” of our customers’ entire supply chains. To those ends, we will pursue the creation of multiple last mile
networks in response to needs that exist in the growth domains, the strengthening of account management, and the reinforcement
and expansion of third-party logistics (3PL) and international forwarding.

Initiatives in Base Domains

Base domain

Expansion of Value Provided Through Proposals Combining TA-Q-BIN with Other Functions

Overview
VisionAchievement of sustainable business growth by expanding the value we provide to the “End to End” of our customers’ supplychains(Fiscal Year Ending March 31, 2024, to Fiscal Year Ending March 31, 2027)

Direction of Domain Expansion

Base domain

Capturing of demand in growthmarkets, such as EC, by creatinga specialized network

Local

Reinforcement of contract
logistics and value provision toBtoB and BtoC as an LLP*1*1 LLP: L ead Logistics Partner (a partner who not only manages and operates
logistics but also participates in and supports the creation of customer
logistics plans and supply chain management strategies)

Fiscal year ended
March 31, 2023

CAGR
approximately
8%*3

Supply Chain Solution

CAGR
approximately
2%*3

Value provision­centered on TA-Q-BIN

Regional branch office

Growth domain

Proposal
activities forresolving
issuesExpansion of Value Provided
Through Proposals Combining
TA-Q-BIN with Other Functions

Provision of Supply Chain Solutions
 xpansion of domestic and internaEtional LLP projects rovision of value in each customerP
segment based on business sizeand potential

 einforcement of response to supplyR
chain to the “End to End” and to EC,including cross-border EC ubdivision of duties and clarificaStion of roles for sales representatives placed in local communities

 dvancement of operational functions
Ato the “End to End” of supply chains
Expansion of store deliveries for
BtoC, DtoC,* and BtoB in food-related
domains (promote the provision ofnew value on a specialized refrigerated
and frozen network in the GreaterTokyo area)

 einforcement of business activities
Rthat aim to resolve each customer
issue as one team, based on information noticed by sales drivers

 einforcement of collaboration aimedRat expanding from domestic to global
operation (consider M&As)
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Promotion of Pricing Optimization
 eflect the impact accompanying
Rchanges in the external business environment surrounding the YamatoGroup and transportation and delivery
partners on prices in a timely andappropriate mannerImplement revisions to individual contracts with corporate clients based on
conditions including business relationship and applicable fares
 ake an effort to review prices on anMannual basis, maintain and reinforce
our transportation and delivery network, and create a business environment that continues to provide
customers with excellent services

NewISE

System andotherproposals

NewSSE

Share details of client relations

Sharing of problems,requests, andobservations

Connectedsystems

New

ISE (Inside sales executive)

Aims to expand transactions and prevent loss
through inside sales, such as telephone andemail. Coordinates with FSEs and SSEs according
to the details of the project to understand andresolve customer issues

SSE (System sales executive)

Has specialized knowledge in areas such as systems and warehouse operations and supports FSE
and ISE proposals combining TA-Q-BIN with otherfunctions. Designs operations to meet and resolve
customer issues

Head Office

PICK UPFSE (Field sales executive)

Oversees sales activities in responsible area.
Makes proposals for understanding and resolving
customer requests and issues through information
gained by SDs and customer visits

NewSupport*3 P rediction for the beginning of the fiscal year ending March 31, 2024
CAGR: Compound Annual Growth Rate

Growth domain

FSE

Non-face-to-facesales activities,
such as emailand telephone

Check details of information
Update activities

Fiscal year ending
March 31, 2027

Growth domain andbase domain (shared)

NewNewOffice manager

SD

Measures to Expand Corporate Business Domain in Growth Domains and Base Domains
Base domain

Share information quickly by utilizing contact
points through TA-Q-BIN pickup and delivery andunderstanding customer trends (requests andissues)

Point of contact forpickup and delivery customers*2 Yamato Transport and overseas consolidated subsidiaries

Upstream

Downstream
Existing TA-Q-BIN network
optimized for CtoC andsmall BtoC

Expansion of value we provide through proposals combining
TA-Q-BIN with other functions

Image of Future Growth for Operating Revenues*

Presence in integrated
domains of express shipping,forwarding, and 3PL

SD (Sales driver)

Area customers

2GlobalTop share of express
shipping (home delivery)

Further expansion of supply chain solution sales

Sales
office xpansion of areas in which we provide value, such as domesE
tic EC procurement and returns domain, cross-border EC for
Japan, logistics in three temperature ranges for food sales
operators, and LLP projects (lead logistics partner contracts)with sales drivers (SDs) who connect with customers on a daily
basis through TA-Q-BIN pickup and delivery, quickly understanding customer issues, and resolving such issues via proposals that combine system, payment, and other functions.
Furthermore, the head office sales department is promoting
the expansion of value we provide through measures including
the advancement of systems to link customer information
obtained by SDs to sales representatives for proposals, thedesign and implementation of training to improve sales representative’s skills, and the revision of products and services.

Overview of Area Customer-Facing Sales Activities

Future Initiatives(Fiscal Year Ended March 31, 2021, to Fiscal Year Ended March 31, 2023)

Corporate­business branch

Initiatives and Results to Date

The Yamato Group is engaging in the expansion of the value we
provide through proposals combining TA-Q-BIN with other functions for small- and medium-sized corporate clients (area customers), aiming to further improve business growth by utilizing
our wide customer base built up through TA-Q-BIN. From April
2023, we placed sales personnel gathered from each businesscompany at regional offices through the transition to One
YAMATO, which subdivides the duties and roles of area customer-facing sales representatives. Each sales office and sales
representative will expand the value we provide by coordinating

Voices of Employees Facing Regional Customers as One TeamFSESD e feel that sales efficiency hasW
increased since we can gain real
information on customers fromSDs and sales office managers
through frequent visits to sales
offices.

 ommunication with sales repreCsentatives, mainly FSEs, has
become easier, enabling us toeasily consult on customer
trends, issues, and other matters.

 e can increase the accuracy ofW
information from SDs who coordinate with systems on a daily
basis and easily link with proposals for customers through directcommunication with SDs.

 e can now communicate withW
customers more actively by learning from FSEs.
 ales representatives can nowS
respond earlier to customer
issues that are linked to thesystem, enabling them to dealwith customers more quickly.

* Direct to Consumer
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Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Expansion of Corporate Business Domain
M ESSAG E

Initiatives in Growth Domains Growth domain

Promotion of Solution Sales That Provide Value to the“End to End“ of Our Customers’ Supply Chains

Provision of Supply Chain Solutions
We have positioned our solution business, which aims to deeply understand the businesses of our large-scale corporate customers and resolve management issues, as a
growth domain, and are promoting account management. Initiatives to optimize the logistics and inventory of the entire supply
chain are progressing in response to understanding customer issues arising from changes in consumption behavior and distribution
structures, such as the shift to omni-channel approaches; expansion of logistics for room temperature, refrigerated, and frozen
goods; expansion of cross-border EC; and enhancement of supply chain sustainability.

 onclusion of Logistic Partnership Agreement
C
Aimed at Realizing Sustainable Fashion(December 2022)
A logistic partnership agreement has been concluded between
Adastria Co., Ltd. and Yamato Transport to realize a sustainablesupply chain for Adastria. We are working to visualize and optimize the entire supply chain and reduce GHG emissions tocreate even more effective logistics for management by reviewing logistics and inventory in Adastria’s supply chain, which
extends both domestically and internationally, from procurement of raw materials to manufacture, and omni-channel saleof products.

Future Developments

Productplanning
Design andprototypes

Procurement
Marine /of raw materials
ProductAirand secondary manufacturing
Transportationmaterials

Domesticlogistics
centersOmni-channelsales, such as
stores and EC

Customers

Visualize and coordinate various information on matters
including inventory, transportation, orders, and sales
Manufacturing Plan

Transportation Plan

Delivery Plan

Initiatives for Sustainable Fashion
 reation of manufacturing and logistics structure in line with demandC
Sustainable operation reforms and reduction of GHG ­emissions, etc.

 ealization and expansion of sustainable fashion* while collaborating with other fashion companies by leveraging
Rmutual expertise and knowledge* Initiatives that aim for sustainability in the future throughout all processes from manufacture of clothes to wearing and disposing of them, taking into consideration the global environment, including ecosystems, and the people and societies involved

Rebuilding of Supply Chains to Meet Diverse Transportation Needs
COLOWIDE MD CO., LTD and Yamato Transport Co., Ltd. aim to create a sustainable supply chainthat contributes to forming an efficient and recycling-oriented society by utilizing Yamato Transport’s
transportation and delivery network at the same time as visualizing and optimizing the entire supplychain of the Colowide Group, which operates multiple restaurant chain brands.
First, we are working to rebuild the entire supply chain, from raw material procurement, manufacturing, and logistics to sales, with the aim of expanding the meal service business, which is Colowide’sfocus. We will continue to realize effective and speedy shipping by launching Yamato Transport’s
three-temperature-range logistics facilities (terminal-integrated) from September 2023.

Future Developments
 evelopment into a wide range of business domains (such as procurement, manufacturing,Ddelivery to stores, and overseas projects) by leveraging our mutual expertise and knowledge.
Reduction of GHG emissions throughout the entire supply chain

Shipping of food products in themeal service business

Expansion of Value We Provide to Cross-Border EC
Amid the recent expansion of cross-border EC, which involves the online purchase of products from overseas by individuals, we collaborated with Enigmo Inc., a company that manages the specialty marketplace BUYMA, and began providing the cross-border EC
anonymous delivery service BUYMA YAMATO. Going forward, we aim to expand availability of the service to facilitate deliveries
from various countries and regions, including South Korea, and are working to develop and provide overseas shipping services thatenable the even safer, more stable, and easier use of cross-border EC for sellers and purchasers.

Key Points of Service
Protection of personal information by realizing anonymous shipping in cross-border EC
Improvement of the convenience for receiving parcels through linkage with Kuroneko Members
Unification of Shipping Label Issuance, Freight Charge Settlement for sellers on BUYMAPROFILE

Hiroshi
Etani

Senior Managing Executive Officer,
Head of Sales and Global Strategy,Yamato Transport Co., Ltd.

After working as a logistics manager at PT. ITOCHU Indonesia, general manager at
ITOCHU Logistics Jakarta, general manager at ITOCHU Logistics Shanghai, and managing director at ITOCHU Logistics Singapore, Mr. Etani’s work history includes experience
as global customer director at DHL Global Customer Solutions, sales, marketing, andcustomer service director at TNT Express, deputy general manager of the logistics business at Rakuten Group Inc., CEO and president director of JP Rakuten Logistics, Inc.,
executive officer and assistant CEO at MITSUI-SOKO LOGISTICS Co., Ltd., and president
and representative director of CMA CGM Japan K.K. He joined the Yamato Group inNovember 2020 and became managing executive officer and head of the Global SCM
Business Division at Yamato Transport Co., Ltd. on April 1, 2021. He has worked assenior managing executive officer and head of Corporate Sales and Global Strategy
since February, 2022 and has held his current position since February, 2023.

In 2021, we transitioned to the One YAMATO structure, bringing
together our vast domestic customer base developed throughTA-Q-BIN, logistics functions such as facilities, transportation anddelivery network, third-party logistics, and international forwarding,and various functions such as finance and IT systems. Additionally,
we have assigned account managers and solution designers with adeep understanding of the businesses of our major corporate clients and can accompany them in the management of their businesses. We have created a system that aims for Yamato to becomea Lead Logistics Partner (LLP) that contributes to not only the management and operation of customer logistics but also the logistics
strategies and plans, by fully utilizing management resources under
One YAMATO structure.
We are also developing concrete initiatives together with customers. As an example, in September 2022, we signed an LLP contract with Nihon Michelin Tire Co., Ltd. with the target of creating a
fluid and robust logistics system across Japan. We are engaging ineliminating uneven distribution of inventory and reducing transportation between facilities by consolidating approximately 20
Michelin warehouses into 5 and visualizing and optimizing inventory control at each warehouse. We are minimizing waste due toexpiry through the realization of a first expire first out (FEFO)
system to ship tires that are closer to their expiration date before
others through inventory management that orders tires by theirindividual production year. Now, in a time of sudden changes tothe market environment, we are aiming for total supply chain optimization that is closer to a just-in-time strategy, while ensuring ajust-in-case strategy. Going forward, we will support Michelin in
optimizing its logistics and inventory, starting in the domestic sales
domain and working back up the supply chain to include production domains overseas.
Based on the long-term risk of environmental issues in the supply
chain, we are promoting green logistics, such as the introduction of
20,000 electric vehicles, installation of 810 units of solar power
generation equipment, and operation of refrigerated delivery that
does not utilize dry ice. Ultimately, we aim to achieve the targetsof virtually zero in-house GHG emissions by 2050 and a 48% reduction, compared to fiscal 2020, by 2030. By reducing our emissions,
we contribute to reducing the Scope 3 emissions of our customers(the emissions of other companies in a business’ entire supply
chain of which transport and delivery make up a large percentage).
Furthermore, visualization of the movement of products throughout
the entire supply chain also means visualizing GHG emissions. At
Yamato, we will provide reports that visualize the GHG emissions
resulting from customers using our transportation services.

Optimization of the supply chain also leads to the realization oflogistics with a low environmental burden. As a result, if we optimize our customers’ inventory and production, we contribute to
not only reducing their Scope 3 emissions but also their Scope 1emissions (direct GHG emissions from the company itself) and
Scope 2 emissions (indirect emissions from utilization of electricity,heat, and steam procured from other companies). Going forward,
we will help reduce the environmental burden of our customers’
supply chains as an LLP.
While we aim to secure a position as an LLP through accountsales, building a foundation to provide value to a wide range ofcustomers is also a key challenge for Yamato. Many of the customers utilizing TA-Q-BIN in Japan are small- to medium-size corporateclients (area customers). To date, business activities for this layer ofcustomers have been led by sales drivers (SDs). However, inconsistencies existed in the level of activities and skills, limiting what wecould offer to customers. As a result, under the leadership of theRegional Branch Manager, we appointed sales representatives whohave expertise with field sales, inside sales, and system sales. We
revised the system to promote sales through close collaboration
between SDs, these representatives, and sales office managers.
SDs communicate the issues and comments from customers when
they visit sites and, based on this information, sales representatives
and sales office managers make proposals that combine not only
TA-Q-BIN but also factors including payment of accounts, systems,
and warehouse operations. This leads to the resolution of customer issues.
For Yamato, we apply value provision to the entire supply chainof our customers and propose “End to End” solutions fromupstream to downstream. At the same time as comprehensively
supporting them in the resolution of management issues they faceby expanding the value we provide to their businesses, we aim togrow together with customers while receiving appropriate compensation. To make this possible, we will continue to promote therecruitment and training of personnel, enhance solutions we provide, and expand our global system. Furthermore, we will
strengthen the necessary functions through alliances with partnercompanies and M&As.
The Yamato Group has been contributing to the creation of anenriched society by innovating delivery services. By creating newdelivery services that meet the changes to society and the environment and diversifying needs in the future, we will support thegrowth potential of our customers and realize a sustainablesociety.

Reduction of delivery time

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