VALUE CREATION BY THE YAMATO GROUPVALUE CREATION BY THE YAMATO GROUP

Part 1

Expanding Value Provision to the “End to End”

From April 2020

From April 2021

Transformation Plan “YAMATO NEXT100”

Medium-Term Management

Part 1

Recently, there have been major changes in the business environment surrounding Yamato, and changes to consumption behavior andlogistics structures have accelerated. Accordingly, the active participation of corporations in resolving social and environmental issues
is becoming increasingly important to the achievement of a sustainable society. Under such circumstances, the Yamato Group aims torealize sustainable business growth by expanding the value we provide to the “End to the End” of our customers’ supply chains. We
will achieve this through promotion of business structure reform centered on the structural reform of network operations and expansion of the corporate business domain based on the One YAMATO management structure, which centralizes the management
resources of all Group companies.

Plan “One YAMATO 2023”

Business Structure Reforms
Group Management Structure Reform

Point

We are embarking on Group management structure reformand business structure reforms to sustainably meet theexpectations and needs of customers and society, based
and worsening social issues.
Business Environment /Social Issues

Issues with theManagement Structure iversification of customer
Dexpectations and needs

 ecentralization of manageD
ment resources of operatingcompanies for each function(partial optimization)D eclining workforceC limate change and resource
scarcity

Review of Business PortfolioL imits of conventional business model that utilizes
TA-Q-BIN ependency on experience
Dand intuition in individual
decision-making
 orporate culture focused
Con self-reliance(Fiscal Year Ended March 31, 2011, to Fiscal Year Ended March 31, 2020)(¥ billion)

(%)

2,000

10.0

1,500

7.5

1,0005.0500

2.500

Operating revenues (left scale)Operating profit margin (right scale)

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YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

 ransfer of shares issued by Yamato Lease Co., Ltd.
Tand Yamato Home Convenience Co., Ltd.
(wholly-owned subsidiary → equity-method affiliates) ithdrawal from development of TA-Q-BIN in EastW
Asia and Southeast Asia

Review

Changes in Operating Revenues and Operating Profit Margin

2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3

Creation of One YAMATO Management Structure
 entralization and redeployment of management
Cresources by integrating Yamato Transport with eightGroup companies

on the accelerating changes to the business environment

 eclining population andD
rural depopulation

P18–21

 einforcement of existing networks as well as creatRing and expanding designated networks

Identification of Issues

 apid progress of EC (e-comRmerce) adoption in variousindustries

Structural Reform of Network Operations( Fiscal Year Ended March 31, 2022, toFiscal Year Ended March 31, 2023)

Medium-Term Management Plan
“One YAMATO 2023”—Results and Issues
ResultsIssues Creation of One YAMATO management structure,
which centralizes Group resources
Progress in creation of EC logistics network as a starting point
Completion of overall design and launch of phased
implementation to reinforce existing TA-Q-BIN network
Expansion of domains in which we provide value, suchas domestic EC procurement and returns domain,cross-border EC for Japan, logistics in three temperature ranges for food distributors, and Lead Logistics
Partner projects (LLP contacts)

Strengthening of response to logistics needs in growthdomains as well as enhancement of network quality andefficiency

Expansion of Corporate Business Domain

P22–25

Vision xpansion of value provision by combining domestic
Eand international facilities and transportation anddelivery networks, third-party logistics, and international forwarding
Point
Expanding value provision to the “End to End” of domestic and global customer supply chains

Promotion of Fundamental Strategies
that Support Structural Reforms
HumanResource
Strategy
P26–31

DigitalStrategy

Environmental
Strategy

P32–33

P34–37

Expanding value provision to the “End to End”of customer supplychains
Achievement of sustainablebusiness growth Structural reform for integration of sales and operations
 ontinuous reinforcement of management foundation
Cthat supports business structure reforms	Optimization of pricing based on changes to the external environment

Reinforcement of Foundation for Improving Sustainable Corporate Value

Strengthening of sustainable management × Strengthening of corporate governanceP38–43		
P44–61YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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