Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Message from the Chief Financial Officer
Please share your approach to financial

Q1 strategies and awareness of your role as CFO.
I believe that my role as CFO is to support management strategies from a financial perspective to realize sustainable growth
and the improvement of corporate value in the medium to long

Contributing to Improving
Shareholder Value andCorporate Value bySupporting Management
Strategies from aFinancial Perspectiveterm. I am also aware of the need to continuously enhance theoverall market price of the shares as shareholders value andplace importance on earnings per share (EPS) and ROE accordingly. By promoting medium- to long-term strategies centeredon business structure reforms, the Yamato Group aims toachieve ROE of over 13%. As CFO, I engage in implementing
investments that increase the profitability of the business and its
growth potential while engaging in maintaining and strengthen-we are advancing the expansion of the corporate businessbillion, to promote our environmental strategies. Meanwhile, we

domain and structural reform of network operations in an inte-intend to continue utilizing debt in working capital and capitalgrated manner.

investments necessary for business structure transformation andAt the same time, we are optimizing balance sheets, promot-

will strive to manage our balance sheet based on capital effi-

ing the selection and concentration of our businesses, products,ciency, such as shareholders’ equity ratio, while maintaining ourand services to make full use of management resources, andcredit rating (Rating and Investment Information, Inc.; AA–) withactively examining collaboration with business partners. In addi-

an awareness of optimal capital structure.

tion, we are continuing to reduce our cross-shareholdings and,dividends with an awareness of DOE (ratio of dividends tobillion, we will continue to sell stocks that we deem to lack sig-

shareholders’ equity) based on factors including growth poten-

nificance to the Company, as appropriate. Meanwhile, while

tial, profitability, financial soundness (cash and cash equivalents

condensing our balance sheets, we intend to maintain a certain

and shareholders’ equity ratio), progress in investments, andlevel of shareholders’ equity ratio, which is required as a corpo-capital efficiency. We aim for a dividend payout ratio of 30% orrate group that serves as a crucial part of social infrastructure.

more and a total return ratio of 50% or more (cumulative for theperiod from the fiscal year ended March 31, 2021, to the fiscal

ing shareholder returns and optimizing balance sheets. I hope
to continuously enhance shareholder value by achieving ROE

EPS/Operating Profit Margin/ROE (Fiscal Year Ended

that fully exceeds shareholder capital costs.

March 31, 2014, to Fiscal Year Ended March 31, 2023)

Q2

 wo years have passed since the launch
Tof Medium-Term Management Plan
“One YAMATO 2023.” Please explain
the second-year results and businessperformance evaluation.

year ending March 31, 2024). While we have implemented
stable dividends over the long term, we believe that we should
also be aware of dividend yield in the future, and will discuss(Yen)(%)
12160¥126.6120

When creating the “One YAMATO Structure,” we engaged in for-3.3%

406(Yen)(%)

3by defining our vision for facilities and personnel. By doing so,
we can gradually generate results.
In the structural reform of network operations, we are lower-0

2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3

EPS (left scale)Operating profit margin (right scale)

Representative Director,
Executive Officer and Vice President

lease explain your approach toward andQ4 Pplansfor investment.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

160

30

120

are optimizing all costs by flexibly allocating the management

value. Regarding the establishment of large-scale facilities, which

resources of both Yamato and our partners in response to fluc-began in the fiscal year ending March 1, 2024, we are moving

tuations in workload. We are also aggregating and standardizing

forward with a balance between properties we rent and proper-

administrative operations in tandem with facility strategies,

ties we own with an emphasis on the speed of expansion. We

making steady progress toward our ideal cost structure.

will reinforce verification and monitoring of the results of invest-

8058.1%101.90My basic approach is investment that contributes to customer

1.9

2.1

2.0

2.0

2.0

2.9

3.0

36.3%
2.9 2.8%

2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3

400

Dividend per share (left scale)
Dividend payout ratio (%) (right scale) otal return ratio (%) (right scale)
TDOE (right scale)

inally, what is your message forQ6 Fstakeholders?

ments to ensure that we can make a return on investments

overseas consolidated subsidiaries and the introduction of thewithin as short a time as possible. We will also actively promote

Two years have passed since the launch of “One YAMATO struc-

Japanese Group Relief System helped to secure net income forinvestment based on digital, human resource, and environmen-ture.” The numerical management systems of each company,

the fiscal year ended March 31, 2023. We will strive to continue

tal strategies that support business structure reforms.

which used to be separate, are gradually being developed andave you considered how to enhance ROE,
Q3 Hwhich
is a KPI, going forward?

corporate activities can be visualized through various indicators.

Q5 lease explain Yamato’s capital policies
P
going forward.

We intend to carefully select and prioritize business investments(capital investments, strategic investments, and M&As) that will

Increasing operating revenues and operating profit—namely,contribute to enhancing shareholder value through capital cre-strengthening earning power—are essential for enhancing ROE.

ated from profit growth due to business structure reforms.

To this end, it is important to expand value provision to the“End to End” and to receive corresponding compensation, and16TA-Q-BIN 40thanniversarycommemorativedividend ¥220020idation and enlargement of sales offices. At the same time, we

Yamato’s financial strategies.

Toshizo
Kurisu¥46

ROE (right scale)enhancing income by also addressing tax aspects as part ofPROFILE

500ing the break-even point by reducing fixed costs through consol-Furthermore, measures including a resolution to liquidate our100th anniversarycommemorative
dividend ¥1040

YAMATO 2023,” I believe that we are steadily implementing
measures to enhance profitability, which is always a challenge,

next medium-term management plan.

Shareholder Return Results (Fiscal Year Ended March 31,2014, to Fiscal Year Ended March 31, 2023)

Yamato’s performance in fiscal 2022 did not fully meet the targets adopted under the Medium-Term Management Plan “Onecapital policies and shareholder returns as we formulate the9

7.6%
80

mulating a plan to fully transform our business structure. While

Our basic policy for shareholder returns is to pay out stable

while we sold four assets in fiscal 2022 for approximately ¥2.7

Regarding fundraising, we issued our first green bonds in July
2023, with a five-year maturity and a total amount of ¥20.0

As a result, while reflecting these appropriately in management
strategies and financial strategies, we are aiming for operating
profit margin of 7% or more and ROE of 13% or more in themedium to long term. Additionally, at the same time as weshow our concrete strategies to shareholders in our next
medium-term management plan, we will realize sustainablegrowth and improvement of medium- to long-term corporate
value through the implementation of these strategies anddialogues.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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