Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Message fromthe President
Reinforcement of the TA-Q-BIN Network
As we have visualized the management resources of thelarge-lot clients Accordingly, we are focusing on reviewing

entire Group, issues that need to be addressed havethe purpose of facilities, particularly in urban areas with abecome clear. One of these issues is the structural reform ofhigh density of them, while consolidating and enlarging their

network operations. We are engaging in an enhancement ofsize in line with changes to the flow and volume of pack-the quality and efficiency of the entire network to respondages. While there is currently a total of approximately 3,300

to various changes in the market environment, such as thesales offices, I think eventually having approximately 1,800

expansion of online consumption and the development ofwould be appropriate.

small-lot, high-frequency logistics between companies.

Furthermore, we are advancing revisions to the pickup

As part of these reforms, we first responded to theand delivery operations available at each facility, in conjunc-

sudden expansion of EC demand during the COVID-19 pan-tion with the consolidation and enlargement of their size.

demic by creating an EC logistics network in collaboration

We aim to standardize the workload for each driver bywith partner companies. Over the next four years, we will

designing pickup and delivery operations through data utili-

focus on reinforcing the existing TA-Q-BIN network. Now,

zation, not just entrusting the response to the fluctuating

three years away from celebrating the 50th anniversary ofworkload to the judgment and ingenuity of frontline staff.

TA-Q-BIN’s launch, the time has come to revise the way

It is important to optimize facility allocation and opera-bases that make up the network are organized, in response

tions in line with regional and customer needs rather thanto changing customer needs.

aimlessly reducing the number of facilities. Naturally, it isSpecifically, we will consolidate and enlarge the size of

Yutaka Nagao
Representative Director,
President and Executive Officer

Business Reform Over the Next Four Years—Expanding Value Provision to the “End to End” of Supply Chains

Structural Reforms Amid a Sense of Impending Crisis

social infrastructure. To maintain a national network inlaunched as a service for individual customers and we allo-

which all employees can respond to customers in allcated sales offices in smaller areas to collect small-lot deliv-

regions, we will enhance the safety, quality, and ease oferies from a wide variety of customers. As a result, our sales

operation for employees and partners even more thanoffices increased to approximately 4,000 at their peak. Now,

before. At the same time, we will increase the productivity

however, there has been a change in the type of packagesof the entire network, optimize processes for transportation

being shipped with 90% of deliveries being made for corpo-

between facilities and sorting operations at each sales

rate clients, and approximately half of those deliveries foroffice, and further enhance the performance of employees.

Establishment and Expansion of Dedicated Networks
In addition to reinforcing the existing TA-Q-BIN network, webehavior due to the recent COVID-19 pandemic, there has

are promoting the creation of dedicated networks. While

been a significant advancement of the shift to EC for food

one of these is an EC logistics network, we also estab-

distribution. Under such circumstances, we will maintainlished, in June 2023, a low temperature transportation andand enhance quality while expanding transportation anddelivery center and began operation of a network dedi-delivery capacity to further meet demand by aggregatingcated to temperature-controlled operations. To date, therefrigerated and frozen delivery under a new, dedicated net-

Yamato Group has contributed to the culture of consumers

work in urban areas, where demand is particularly concen-

ordering fresh produce directly from other regions and thetrated. Refrigerated transportation and delivery is a growthdevelopment of related businesses by building a transporta-

domain that is not limited to food. Demand is expected totion and delivery network that handles three temperature

increase for pharmaceuticals and we plan to expand thisranges (room temperature, refrigerated, and frozen).

dedicated network as necessary.

In 2019, I was appointed the President of the Yamato Groupas “effective utilization of management resources.” No

during a time of impending crisis. An awareness of twomatter how many excellent management resources you

major issues formed the background of this. The first issue

gather, you cannot achieve the performance you are capa-

being that our management structure did not provide ser-ble of if they are not optimally allocated. Accordingly, undervices drawn from a customer standpoint in the face of

YAMATO NEXT100, our grand design for management overchanges to society and customers. Up to 2019, the Yamato

the medium to long term announced in 2020, and Medium-

Group was organized by function—such as a company that

Term Management Plan “One YAMATO 2023,” launched inprovided TA-Q-BIN services, a company that provided logis-

April 2021, we have been engaging in Group managementtics services for corporate clients, and a company thatstructure reform. In other words, how to change the form ofdeveloped IT systems—and was partially optimized. The

management to fully utilize management resources. By inte-

The Yamato Group aims to achieve sustainable businessfurther value to customers. Since launching One YAMATO

second issue I was aware of was that many of the managers

grating nine existing operating companies into one entity,

growth through expanding value provision to the “End to2023, we have created several examples of solutions, such

responsible for the management of each operating com-

Yamato Transport, creating “One YAMATO structure”, andEnd” of supply chains. The Group management structure

as initiatives to optimize the entire supply chain of our cor-pany did not see this existing management structure as acentralizing and reallocating Group management resources,reform that we have promoted to date and the structural

porate clients, which are steadily yielding results.

I believe we have been able to shift to a structure thatreform of network operations we are currently advancing

directly addresses customer needs.

are to help us evolve into a business that can provide

problem and strongly felt that there was no sense of crisis.
I believe that “corporate management” can be rephrased

12

essential we do not damage the national network as asmall, multi-store sales offices. TA-Q-BIN was originally

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Meanwhile, against a backdrop of changing consumption

Expanding Value Provision to the “End to End” of Supply Chains

Additionally, we are striving to expand the value provided
in the cross-border EC domain. To date, the conventional

YAMATO HOLDINGS CO., LTD.
統合レポート 2023

13

Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Message from the President

method for individual clients to obtain products purchased

realized this under the existing partially optimized structurefrom overseas was via logistics by international and domes-

and this achievement is one result of the Group manage-

tic operators. In recent years, however, individual clientsment structure reform.

have been able to directly purchase and receive products

Meanwhile, while we are still at the development stage

from overseas sellers. The Yamato Group has been focusing

for fields such as third-party logistics and international for-on this domain for many years and has been proposing thewarding, I believe there is significant room for growth in lightuse of Yamato’s logistics network to overseas sellers. Theof the Yamato Group’s management resources and poten-

number of parcels we handle has expanded to a volume

tial. Over the next four years, we aim to further reinforce thebeyond our initial expectations. This was achieved throughnetworks, operations, and corporate sales functions, includ-

collaboration between domestic and overseas units of theing collaboration with other companies, to expand the

Yamato Group, who worked together to establish opera-

scale of transactions.

tions and make proposals to customers. We could not have

Visualization of GHG Emissions as a New Differentiating Factor

at each terminal, where definitions of duties remained

culture that enables employees to accomplish their tasks

vague. Furthermore, while we have further clarified the

independently, enhance their performance, and feel theirduties of sales drivers, there is an increasing necessity towork is rewarding. We will achieve this by implementing a

subdivide duties to meet diversifying customer needs, suchcycle of further clarifying the definitions of duties for all

as increasing the shipping ratio for large-lot clients. We are

employees, establishing appropriate evaluation criteria foralso adding new duties based on our management strategy,

measuring performance according to these definitions, andsuch as in the digital and corporate business domains. In

holding meetings between evaluators and each employee

light of such circumstances, we will cultivate a corporate

to give detailed feedback.

We are currently developing tools for visualization of GHG

on this standard. We plan to complete development thisemissions. These tools are expected to become a new

fall. For the Yamato Group, who have adopted the target ofstrength aimed at expanding the value provided in corpo-

achieving virtually zero GHG emissions by 2050,* visualizing

rate client supply chains. While to date there has been no

GHG emissions is an opportunity to further contribute to

global formula for calculating GHG emissions in logistics,

the sustainability of society and the environment. As interest

the Yamato Group has signed a basic agreement for collab-

in and standards for global GHG emissions increase, we

oration in the environmental domain with the major

expect that contributing to the optimization of distribution

European home delivery company, DPDgroup. We haveand inventory while reducing these emissions through visu-

been participating in the creation of ISO 14083:2023, analization of GHG emissions in the supply chains of corpo-

international standard related to transportation-based GHG

rate clients will become a major differentiating factor in

From April 2024, a cap on overtime work will be applied tocharter flights following a shift to small-lot, high-frequency

emission calculation and reporting methods, and promoting

expanding the corporate business domain.

automobile driving operations. The entire logistics industry

delivery, loading operations outside of contracts, and longthe development of a tool for visualizing emissions based*Scope 1 and Scope 2

is facing the serious issue of workstyle reforms for drivers

waiting times for cargo in logistics between companies.

and securing transportation capability. We have alreadyAccordingly, we will make proposals for resolving such

implemented workstyle reforms for Yamato Group employ-issues for corporate clients. For example, we can enable

ees and employee working hours have reached an appropri-

more efficient methods of delivery by combining packages

ate level. However, we are now promoting cooperation withfrom numerous clients through a package transportationeach partner company, such as reviewing the purpose ofservice in pallet units, even if the cargo area of a chartertransportation and introducing a standardized contract

flight is empty on the return journey. The Yamato Group has

	Planning and Development of Human Resource Measures in Conjunction
with Our Management Strategy
A major driving force in promoting a series of reforms and

For the Yamato Group, our most important management

measures was the existence of professional humanresource is people. We plan and develop human resource

resources that have joined the Yamato Group over the pastmeasures under the recognition that our HR strategy is so

few years. Now, over 20% of Yamato Transport executive

important, it can be called a management strategy.

officers have outside knowledge and we have ensured weSpecifically, we are promoting the clarification of defini-can set out new challenges and measures by gathering thetions of duties in line with our management strategy andappropriate people from within the Company to work

new business structure. For example, this clarification has

under them.

been implemented in some cases in the sorting operations

Response to the 2024 Problem

system based on the transport distance and time period, tothe knowledge to standardize transportation, as shown byadvance the workstyle reforms in our partner businesses

TA-Q-BIN. We are pursuing sustainable logistics by stan-that support trunk-route transportation.

dardizing transportation in logistics between companies

Furthermore, I feel it is necessary to improve inefficientbusiness practices, which has previously been an issue,and creating more efficient delivery methods that also contribute to even better workstyles for drivers.

such as decreasing efficiency of loading operations forAchievement of Sustainable Growth by Building the Trust of Customers
I believe that the most important factor for the sustainable

reallocation of management resources will be tested in

growth of a company is building up trust with customers.

order to achieve sustainable growth. We aim to be a com-

The growth the Yamato Group has achieved to date is apany that is trusted by all our customers and stakeholders

result of building up trust through provision of our TA-Q-BIN

by fully utilizing Group management resources to pursue

service. However, there have been changes to the businesseven better services that fit the times, rather than being

environment and customer needs. Simply maintaining thecontent with our past experience of success.

same services we have provided to date will not result ingrowth in the future.
I view the year ending March 31, 2024, and the three
years of the next medium-term management plan as fourvital years in which the true value of reforms based on the

14

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

October 2023

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

15

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 by
Supporting Management
Strategies from a
Financial Perspective

term. 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 launchTof 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)(%)
12

160¥126.6120

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

3.3%

40

6

(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-

80

58.1%
10

1.9
0

My 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

40

0Dividend per share (left scale)
Dividend payout ratio (%) (right scale) otal return ratio (%) (right scale)T
DOE (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, and

16

TA-Q-BIN 40th
anniversarycommemorative
dividend ¥2

200

20

idation 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 of

PROFILE50

0ing 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 the

9

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

17

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Structural Reform of Network Operations
In response to the progressing growth of EC and changes in customer needs and distribution structure, we will achieve the enhancement of overall network quality and efficiency by creating dedicated networks optimized to meet diverse logistic needs at the sametime as reinforcing the existing TA-Q-BIN network.

Reinforcement of Existing Networks

1

Background

Consolidation and Enlargement of Sales Offices

We are optimizing transportation, operation, administration, and management costs and enhancing safety, quality, and employee-friendlinessat each location by consolidating and enlarging small, multi-store TA-Q-BIN sales offices, with a focus on urban areas.

The existing TA-Q-BIN network was initially launched to provide CtoC services. Despite meeting the diverse BtoB and BtoC needsof small-scale to large-scale corporate clients, it has become a structure difficult to link to revenue growth with an increase inparcel delivery amount following changes in customer needs and distribution structure.

Existing Networks
 ationwide roll out of a hub and spoke distributionNmodel for sorting and transportation terminals andsales offices
 peration on standardized timelines to provide uniO
form (high-quality) services
 lacement of full-time employees (multi-functionalP
sales drivers) at small, multi-store sales officesIncrease in volume of parcels from large-scale corporate clients who ship from specialized warehouses, etc.

Previously: s mall, multi-store sales
officesIncompatibilities with existing network, which mainly
focuses on small-lot parcels and standardizing operations on next-day shipping, have become apparent(Ten thousand units) (People) (Million yen)

250,000

Peak in number of
employees
Approximately 225,000

1,800*

0

Growth domains

2014/32022/32023/32024/32027/3* Prediction for beginning of the fiscal year ending
March 31, 2024

Basic Strategies that Support Structural Reforms

Digital Strategy

 romotion of appropriate human resourcePallocation in conjunction with renewal ofworkstyles and structures

150,000

 or an overview of our human resource strategy,Fplease see page 26.

100,000

50,0000
2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3
 arcel delivery amount (ten thousand units)PNumber of employees (people)
Operating profit (million yen)
* Product scope: TA-Q-BIN, TA-Q-BIN Compact, EAZY, and Nekopos(Fiscal Year Ending March 31, 2024, to Fiscal Year Ending March 31, 2027)

Progress in building EC logistics network as a start point

Accomplishment of existing network reinforcement

 ompletion of overall design to gradual launch of initiatives
C
aimed at reinforcing existing networks

 reation and expansion of dedicated networks optimized toCmeet diverse logistic needs
Creation results

2

Environmental Strategy

 aximization of the initiative’s outcomesM
through utilization of a system for optimal
resource allocation in response toworkload or an overview of our digital strategy, please seeFpage 32.

Review of Terminal Functions

 uplication of timelines for dispatch operations andDarrival operations within the same terminal, lowering
operational efficiency

 or an overview of our environmental strategy, pleaseF
see page 34.

Number of terminals

Concurrently with reviewing terminal functions, such as separating dispatch and arrival operations andintegration of large-scale sales offices with terminal in light of changes in volume of parcels and timelines, we will promote maintaining and improving safety, quality, job satisfaction, and employee-friendliness and optimizing transportation and operation costs by revising definitions of duties, standardizing
human resource composition (full time, part time, hourly workers, and temporary staff), and entrusting
part of operations at some terminals to business partners, then reallocating employees.

Previous Operations

 ncouragement to reduce GHG emissions
Eby introducing various environmental
equipment at large-scale sales offices,
including a switch to EVs, solar power
generation equipment, and LEDs.

76
Fiscal year ended
March 31, 2023

Approximately

70 *Fiscal year ending
March 31, 2027

* Predictions for beginning of the fiscal year ending
March 31, 2024; total for specialized dispatch andarrival terminals and integrated terminals

Integrated dispatch and arrivalmodel (conventional)
Dispatch
ArrivalCreation of EC logistics network
Creation and expansion of dedicatednetworks optimized to meet
diverse logistic needs

Creation of network dedicated to temperature-­controlled deliveries (BtoC and BtoB)
Expansion of transportation and delivery network
for corporate clients xpansion of value provided inE
response to needs
 eception of appropriate pricing
R
based on value provided
Optimization of operating costs

Base domain

3,501 3,331 Approx.
2,800*Approx.

1,500

Human Resource Strategy

Measures

3,924

3,000

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

Group management structurereforms—begin business structure reform

Overview
Initiatives and Results to Date

Trends in number of sales offices

4,500

Increase in EC parcels with different timelines andoperations
 hanges in the balance between dispatch and arrival
CvolumesIn the Future: consolidated andenlarged sales offices

Parcel Delivery Amount*/Number of Employees/
Operating Profit

200,000

Changes in Customer Needs and Distribution Structure

18

Base domain

Reinforcement of existing networkat the same time as creating a
dedicated network

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Consolidationand enlargement of sales offices
Review of terminal functions

 enewal of workstyles and the operationalR
structure

Increase in job satisfaction
 aintenance and enhancementMof safety, quality, andemployee-friendliness

Future Operations
Improvement in flow of
overall operations throughseparation of dispatch andarrival operations and redesign of operations
 election and implementaStion of optimal methods in
response to characteristics
of each terminal

Integrated dispatch and arrivalmodel (conventional)

Dispatch
ArrivalIntegrated dispatch and arrivaland enlarged sales officecoexistence model

Dispatch
ArrivalEnlarged sales office

Separated dispatch and arrival, and integrated enlarged sales office

Dispatch

ArrivalEnlarged sales office

Began reorganization of terminals in the Fukuoka
area and launched operation of new Sasaguri terminal (new and lease) from November 2022

Basic Strategies that Support
Structural Reforms
Human Resource Strategy
 romotion of optimal human resource allocaPtion and clarification of definitions of duties

Digital Strategy andEnvironmental Strategy
 eduction of GHG emissions by promotingRtransportation efficiency through data analysis

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

19

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Structural Reform of Network Operations

3

Reform of Workstyles and Operational Structures (Sales Drivers)

Previously

In the Future

SD (sales driver):Specialized sales and client relations model

Uniform nationwide SD

Major urban areas*1 SD+DD+PD

DD (delivery driver):Specialized delivery model

Creation and Expansion of Dedicated
Networks Growth Domain

We will maintain and enhance quality, employee-friendliness, and job satisfaction, strengthen our response to diversifying customer
needs, and optimize operating costs by enhancing delivery efficiency subdivision and specialization of sales driver duties into sales,delivery, pickup, and other operations in line with regional characteristics based on changes in the balance between pickup anddelivery workloads and the increasing burden of multi-tasking following a rise in shipping ratio for large-scale corporate clients.

 aintenance of structure withM
­approximately 60,000 drivers covering
nationwide nhancement of pickup and deliveryEproductivity through specialization andcreation of systems
Sales

DeliveryPickupSD

Sales

DeliveryPD (pickup driver):Specialized pickup model*1 Placement of drivers (employees) specializing in­temperature-controlled delivery only and EAZY CREW
(business partners) in places with specific demand

Estimated Composition in March 2027*2

Pickup
SD·PD

SD
DD

—

PD

Development

DD

—
—

*2 P
 rediction for the beginning of the fiscal year
ending March 31, 2024

Basic Strategies that Support Structural Reforms rom February 2023: Commencement of trials in someFareas of Tokyo rom January 2024: Further development in majorF
urban areas (Tokyo, Chiba, Kanagawa, Saitama,
Nagoya, and Hanshin (Osaka and Kobe) areas)

Human Resource Strategy
 aximization of initiative outcomes through design of workM
styles and pay conditions based on duties

Digital Strategy
 aximization of initiative outcomes by introducing systems
M
that flexibly rearrange operations in line with daily workload
fluctuations, in conjunction with the consolidation andenlargement of sales offices

Basic Agreement Regarding Collaboration with Japan Post Group Aimed at Promoting
Sustainable Logistics Services
We signed a basic agreement regarding collaboration with Japan Post Group to promote sustainable logistics services. This agreement willcontribute to transportation services that are instrumental in enhancing convenience for customers and business growth through effective
utilization of the management resources of both companies, to resolving social issues, including the “2024 problem” faced by the logistics
industry, and to environmental issues.

Strengths of Both Groups

Details of Cooperation

Yamato Group (Yamato Transport)

Japan Post Group (Japan Post)

From February 2024: Direct mail service area

Nationwide network of pickup
and delivery trucks
Approximately 35,000 2t and4t trucks*

Nationwide network of pickup anddelivery bikes and mini vehicles
Approximately 82,000 bikes
Approximately 30,000 minivehicles nd of Kuroneko DM-Bin on January 31, 2024, and launchEof new service, Kuroneko Yu-Mail (tentative)* Installation of temperature-controlled
equipment in 95% of trucks (approximately 33,000)
average refrigeration
capacity for temperature-control of 2t
trucks is 2,000 liters

Utilization of
network
resources

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

1

Gradual Opening and Development of(¥ billion)

2 elivery of packages accepted from customers by Yamato
D
Transport on the Japan Post delivery network

From October 2023 in Stages: Small, thin parcels
 nd of Nekopos in stages from October 2023 and launchEof new service, Kuroneko Yu-Packet
 elivery of packages accepted from customers by Yamato
D
Transport on the Japan Post delivery network

12,000

(%)

4,000

5

4.16%

13,999.7
6

10,051.5

6,000

Largescale EC
operatorsEC
sorting
centerEC
deliverycenterEnd user(personreceivingparcel)

3

0

2019

2020

2021

2022

0

Size of the BtoC EC market in product sales domain
Rate of shift to EC (right scale)
Source: Ministry of Economy, Trade and Industry, Market
Research on E-commerce

2020

2.89%

2,750.5

1,823.3

R*1 of

3 CAG

023//3 to 2

9.2%%*

R of 5.8

IN CAG

TA-Q-B

4

2

3
2
1

2019

2020

2021

2022

0

	Size of the EC market for food, beverages, and alcohol (left scale)	Rate of shift to EC (right scale)
Source: Ministry of Economy, Trade and Industry,Market Research on E-commerce

3(20 facilities open as of June 2023)

9

6.76%

Trends in Cool TA-Q-BIN Delivery Amounts(¥ billion)

0(%)

Network Dedicated to Temperature-Controlled Deliveries

Growth of the EC market in food logistics

2,000

9.13%

18,000

By responding to the increase in EC parcels,which differ from conventional TA-Q-BIN in termsof timelines, delivery method, pricing, and otherfactors, and by creating flexible capacity throughcoordination with business partners, we are
expanding sales opportunities for EC operators,
reducing lead times between order by EC users
and arrival, and improving customer experiences
through real-time communication and diversedelivery methods.

3,000

EC Delivery Centers in Urban Areas

Growth of the EC Market

EC Logistics Network

1,000

TOPIC

20

Alongside initiatives reinforcing our existing network, we are promoting dedicated networks optimized to meet diverse logistics needs in areas where demand is concentrated. Accordingly, at the same time as expanding the value we provide in response
to customer transportation needs, which existing networks could not sufficiently meet, we will increase the growth capabilities andprofitability of the Yamato Group through reception of appropriate pricing based on this value.

2020/32021/32022/32023/3*1 CAGR: Compound annual growth rate
*2 TA-Q-BIN (including Cool TA-Q-BIN), TA-Q-BIN
Compact, and EAZY

By expanding capacity
through the establishment of two largescale concentrated
facilities in the Tokyo
metropolitan area in
response to increasing
Low Temperature
demand for BtoC andTransportation and Delivery
Center (South Tokyo Area)
BtoB temperature-­(Commenced operation incontrolled deliveries,
June 2023)
we will contribute to
the expansion of sales
opportunities, such as for food manufacturers
and sales business operators, and provide thevalue of reducing overall logistics costs by optimizing the entire supply chain.

Specialized Corporate Transportation and Delivery Network

Based on various risks in customer supply chains, such as changes in consumer trends and industry structures, decreases in workforce, andresponses to the “2024 problem” and environmental issues, we will expand the value we provide through our response to standardization ofoperations to the transportation needs outside the scope of TA-Q-BIN transportation needs by reorganizing group resources and reinforcing
collaboration with business partners.

Service Example: JITBOX Chartered Delivery
 ransportation service, from pickup to delivery, that loads customer packages
Tonto a metal cage on wheels
 lternative service to chartered truck delivery that provides value of timelyA
delivery and high-frequency delivery in the appropriate quantity

JITBOX Chartered Delivery

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Expansion 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’ supply
chains(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 to
BtoB 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 forresolvingissuesExpansion 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
A
to the “End to End” of supply chains
Expansion of store deliveries for
BtoC, DtoC,* and BtoB in food-related
domains (promote the provision of
new value on a specialized refrigerated
and frozen network in the Greater
Tokyo area)

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

 einforcement of collaboration aimed
R
at expanding from domestic to global
operation (consider M&As)


22

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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

New

ISE

System andotherproposals

New

SSE

Share details of client relations

Sharing of problems,requests, andobservations

Connected
systemsNew

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

New

Support*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 email
and telephone

Check details of information
Update activities

Fiscal year ending
March 31, 2027

Growth domain andbase domain (shared)

New

New

Office 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 for
pickup 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

2

GlobalTop 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 has
Wincreased 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 now
S
respond earlier to customer
issues that are linked to thesystem, enabling them to deal
with customers more quickly.

* Direct to Consumer
YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

23

Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Expansion 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

Product
planning
Design andprototypes

Procurement
Marine /of raw materials
Product
Airand secondary manufacturing
Transportationmaterials

Domestic
logistics
centersOmni-channel
sales, 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 supply
chain 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’s
focus. 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,D
delivery 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 in
November 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 as
senior 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 1
emissions (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 we
could offer to customers. As a result, under the leadership of theRegional Branch Manager, we appointed sales representatives who
have 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 sustainable
society.

Reduction of delivery time

24

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

25

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Human Resource Strategy
To realize our vision, the Yamato Group is promoting human resource strategies in tandem with management strategies, based on the
Yamato Group Human Resources Management Policy, which demonstrates our approach to human resource management.

Overview

Basic initiative

ACTIVITYPROFILE

Creating Even Higher Added-Value by Maximizing
the Activities and Contributions of Each Employee

 et Human Resources Management Policy that connects the growth ofS
employees to the growth of the Group, and planning and deploymentof human resource initiatives

Enhancement of Labor Productivity

 larify definition of roles linked to management strategy, and set plan forChiring, training and appointment Groupwide based on definition of roles
 stablish cycle of target-setting, evaluation and feedback based on defiE
nition of roles

Build Optimal Talent Portfolio to Create Added Value

KPIs

Growth rate for2015/3
2019/3Growth rate for
2019/32023/3Growth rate for2023/32027/3(prediction)

0%

+9%

+15%

Human resource
productivity** Human resource productivity = (consolidated operating revenues – consolidated
subcontracting expenses) / consolidated personnel expenses

 romote active participation of female employees, support employment
Pof non-Japanese employees reate work environment with no harassment or violations of humanCrightsHuman Resource Strategies: Challenges and Mission

human resource management in promoting Group management

Strengthen Engagement

structure reforms and business structural reforms, as well as the

Recordso far*2023/3

Employee-friendly

72%

66%

Rewarding

68%

61%

Desire to continue employment

75%

70%

Feel their own growth

72%

67%

Feel they are contributing to thecompany

74%

68%

KPIs
Employee Awareness
Surveys

Value creation

Promote health and productivity management

Masayuki Ishii entered the Bridgestone Corporation in 1988. After working at the Head Office, plants, andtechnology centers, he was responsible for human resources and labor management at various offices in the
United States, Spain, and Belgium. Upon returning to Japan, he was responsible for areas at the Head Officeincluding global human resources and human resource development, corporate planning, corporate communication, risk management, and overseas business management. In October 2022, he joined Yamato
Transport Co., Ltd.

resource strategies are to clarify the vision for the organization and ptimal allocation of talent in conjunction with consolidation andOenlargement of facilities, as well as workstyle reform (more detailed
specification of the definition of roles for Sales Drivers, reallocation ofadministrative and operational staff, etc.)

Improve Work Environment and Motivation ofDiverse Range of Employees

Masayuki
Ishii

Managing Executive Officer Responsible for overseeing
Human Resource Management and Development, Yamato
Transport Co., Ltd.

I believe that the challenges for the Yamato Group’s human ire specialized talent for each domain (corporate sales, logistics operaH
tions, digital etc.), and train specialized and core talent by enhancing
education

2027/3(prediction)road map to their realization, and to lead employees to empathizewith and change their behavior. Based on factors including trends
in each indicator of employee awareness surveys, including job sat-

Level higher
than record
so far* Since fiscal year ended March 31, 2017

Formulation of Yamato Group Human Resources Management Policy (April 2023)

Aspiration

Promotion of Human Resource Strategies in Tandem withManagement Strategies Based on Yamato’s Human Resources
Management Policy, Which Has the Key Phrase of “Growth”

OUTPUT/OUTCOME

Set and Promote Human Resource Strategies
that Support Management Strategies

Management Philosophy

M ESSAG E

Help enrich our society

Expand value provision to the “End to End” of supply chains—Realize sustainable business growth

Human Resources Management Policy
Yamato endeavors to create value for the future, and further advance itself to help continuously enrich our society.
Yamato recognizes each employee’s contribution and growth through fair evaluation and feedback, and aims to foster an inclusive work environment where each individual feels actively engaged.
Yamato encourages employees who take ownership with a customer-centric perspective and sincerity, and rewards those who constantly
strive to be at their best with challenging opportunities and personal growth.

isfaction, we must ensure that each employee understands thechanges in the Company and the roles expected of them. We willachieve this by demonstrating our human resource strategies, carried out at the same time as necessary major structural reforms,
and promoting concrete measures.

Since I was first appointed as the Executive Officer
Responsible for Human Resources in 2022, I have becomeaware of frankly communicating and implementing what I feeland believe as
Employee Awareness Surveys
someone who has(%)
80
come from outside
70%of the Yamato
70
Group. I feel that66%
my mission is to60suggest and pro61%
mote human50
resource strategies
40
in tandem with
2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3
management stratEmployee-friendly
Rewardingegies and business
Desire to continue employment
strategies basedon issues brought to light through dialogues within the YamatoGroup.

Growth of Both the Company and Employees
Through business growth, the company provides an environment andopportunities for each and every employee with a diverse personality
to flourish while demonstrating their individuality.
Focus on creating new value with customers firstClarify the scope of roles and responsibilities required of employees mpathize with our corporate philosophy and sincerely face our stakeE
holders to create value with customers first eize employee growth as the source of the company’s growth and provide
S
opportunities for employees to flourish and grow

 ecognize roles and achievement responsibilities and act autonomouslyR
to contribute to the company’s growth

Recognize and praise employees who perform well in their expected roles

 onstantly improve the level of value creation through voluntary learning,C
trails, and challenges

 reate a workplace culture that allows employees to feel their work isCworthwhile

26

Employee attitude (ideal human resource)
In order to embody the Group’s corporate philosophy, employees shallact autonomously and independently, with the first priority placed on
customers, in relation to business activities that embody the Group’s
corporate philosophy.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Committed to and able to lead to results

continued growth of both Yamato and employees.
Additionally, we will clarify the roles and responsibilities necessary for the growth of the Company that are the starting point for
creating and operating a human resource management system.
This was the base for our Document for Definitions of Duties. This
document states the specific details of work, scope of responsibility, expertise, skills, and other information. By transforming into asystem that evaluates the degree to which definitions of duties are
put into practice, training assessors to provide feedback that supports employee growth, and appropriately reflecting this evaluationin compensation, we will create a cycle that enables the growth ofboth Yamato and employees. Furthermore, we will enhance
added-value as an organization by supporting the growth of each
employee through investment in people for the purpose of contributing to opportunities for training, developing the working environment, and creating an infrastructure that enables human resource
advancement, such as for non-Japanese employees and female
employees, leading to the generation of even higher-quality results.

Creation of Value by Promoting Human Resource
Strategies That Support Structural Reforms
The main point of human resource strategies is realizing further
growth and improvement of corporate value by supporting management strategies to expand the corporate business domain andcarry out structural reform of network operations.
In expanding the corporate business domain, we are focusing on
recruiting specialized personnel as immediate assets and developing internal specialized and core personnel to strengthen earning
power. At the same time, we are developing a reskilling system forgaining skills in new areas and raising the level of performance.

Human Resources Management Policy for Continued
The attitude of the company (how the organization should be)

employees. This policy has been positioned as a compass for the

In April 2023, we formulated the Yamato Group Human Resource
Management Policy to clarify the type of person Yamato requires andthe Company’s attitude toward human resources. Under the process
for identifying these factors, we held thorough discussions between
the Human Resource department, the entire management team—responsible for executing business—and the Board of Directors,
focusing on how the organization and its employees should change,
with particular emphasis on the key phrase of “growth.” Employee
growth is the driving force for the growth of Yamato and I believe wecan achieve such through the Company’s support for the growth of

In conducting structural reforms of network operations, we willencourage even higher employee performance by advancing thetransition to work styles connected to the reorganization of facilities, such as subdivision of sales driver professional duties, basedon factors including changes to customer needs and diversificationof employee values.
One key challenge going forward is the optimization of humanresource deployment following business structure reforms. By
evolving Yamato Staff Supply Co., Ltd. into a comprehensive personnel service company through collaboration with WORLDHOLDINGS CO., LTD., we will provide diverse job options for Group
employees, even outside of the Group, and a wide range of career
opportunities through reskilling.

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

27

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Human Resource Strategy Building an Optimal Human Resource Portfolio for Creation of Added-ValueTo create added-value in growth domains, we are promoting the recruitment and training of essential human resources. Furthermore,in conjunction with the structural reform of network operations (including reallocation of human resources responsible for TA-Q-BIN
offices and operation work, and subdivision of sales driver professional duties), we will improve job satisfaction and productivity bydefining roles that meet the needs of customers and employees, and appropriately allocating human resources.

1

Top executive officers

High-Value-Added Solutions
language skills, for approximately 1,000 corporate sales personnel in Japan and overseas.
From the fiscal year ending March 31, 2024, we shifted to asales system that further speeds up proposals for solutions. Thisis achieved by assigning corporate sales personnel who haveenhanced their skills through a systematic training program asregional directors and at regional branch offices, which are close
to customers. Going forward into this new phase, we will planand promote development measures to further enhance theperformance of corporate sales personnel. Additionally, to further expand the value we provide as LLPs to our customers, wewill actively promote the recruitment of human resources who
have diverse knowledge and experience from outside the logistics industry and are familiar with customer supply chains.

(2)
Knowledge

Promotion of acquisition of logistics-related certification(3)
SkillsSupport for improving language skills, etc.

(4)
Action(Process)(5)
Performance(1)
MindsetDevelopment of Core Personnel Who Drive Business Growth

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Drivers

Operations

Talent Pool Two (candidates
for president and high-level
executive officers)

Executive regional directors andExecutive department managers

Human Resource Development
Measures

General managers and Senior managers
Regional branch managers and Head officemanagers

Talent Pool Three (candidates
for executive officers)

Sales office managers and Hub basemanagers(in charge of terminals)
Head office assistant managers

Talent Pool Four (candidates
for managerial personnel)

Officework

Sales
peoplePlanning

Implementation of Selective
Training Program ext Leader ProgramN
Future Leader Program

Encouragement of Autonomous
Career Development
 rovision of training opportunities toP
employees who are willing to growindependently

Operational planning andmanagement

 0-year development plans for regular1
graduate recruits

Data analysis/operational design/system­engineering and operationImplementation of human resource
visualization and assessment

Head Office ppropriate placement based onAcareer goals and qualifications

The Yamato Group has implemented self-assessment questionnaires for regular graduate recruits regarding job satisfaction and their
future career paths. Based on the results of analyzing these questionnaires, we introduced an in-house job-posting system and a selfevaluation system on a trial basis from fiscal year ending March 31, 2024. These are methods to provide opportunities for employees
to re-assess their careers, leading to autonomous growth. Going forward, we will further enhance the working environment thatenables employees to grow autonomously and select their careers.

TOPIC
Mindset of providing value to customers,
colleagues, and society and giving our own
lives value through work

The Yamato Group has created the Definitions of Roles
Document, launching its application in stages from the fiscal
year ending March 31, 2024. In line with these roles, we arerevising our evaluation system. As we are promoting innovatedworkstyles and systems in tandem with the structural reform of
network operations, including the consolidation and enlargement of facilities, we are revising our evaluation system with a

Operational
managers

Talent Pool One (candidates
for presidential succession)Development of an Environment that Realizes Autonomous Growth and Career SelectionCorporate sales seminars for acquiring practical skills* A sales method that utilizes an interview framework that identifies customer circumstances and issues to clarify latent needs

Managerial
personnel

Senior managing executive
officers and Managing
executive officers

Sales offices, Terminals, Regional branch offices,and Regional directors

Mindset training for human resources in corporate sales

Business analysis training

Executive officers

President andVice-President

Skills to support customers’ businesses by
understanding issues faced and to create andprovide solutions for optimizing supply chains

Knowledge related to customers’
industries, businesses, and supply chains

Training to enhance solution sales skills that ­utilize SPIN*

High-level executive
officers

Regularemployees

Designing a Program for Employees to Attend Seminars Tailored to Their Experience and Skills

28

Based on succession plans, we have formed talent pools, with the president positioned at the highest level, and are systematicallypromoting human resource development measures for each talent pool. For example, for executive officer candidates in Talent Pool
Three, we will apply our Next Leader Program, a selective development program, to (1) select candidates for the next generation ofmanagement leaders, (2) monitor candidates and provide training opportunities, and (3) conduct opportunities to achieve stretch
goals and strategic placement to determine their aptitude.

Talent Pool Chart

Development and Recruitment of Corporate Sales Personnel Who Provide

The Yamato Group aims to become a management partner(LLP: Lead Logistics Partner) for corporate clients through theprovision of high-value-added solutions, supporting the innovation of supply chains and business processes, as well as theimplementation of structural reforms. To achieve this goal, we
are focusing on the development and recruitment of corporate
sales personnel.
In the fiscal year ended March 31, 2023, we worked toenhance our knowledge and skills for the purpose of gaining a
deeper understanding of our customers’ industries, businesses,
and entire supply chains, which has allowed us to propose concrete solutions for management issues. Accordingly, we haveprovided training on business analysis, more practical corporate
sales seminars, and training to improve solution sales skills, inaddition to acquiring related qualifications and improving

2

Human Resource Development According to Talent Poolfocus on the definitions of roles, starting from the upper level ofexecutives (managerial personnel), placing importance on linking appropriate evaluation with staff allocation. Instilling a culture within the organization in which employees themselves aim
for career development and personal growth based on evaluation leads to the fostering and securing of personnel who drive
business growth.

Business Partnership with World Holdings Co., Ltd.
In July 2023, the Yamato Group and World Holdings Co., Ltd. (WHD)
formed a business partnership with the aim of effectively utilizing themanagement resources of both companies, retaining revenue opportunities, and securing future competitive capabilities. As part of this,we transferred 51% of issued shares in Yamato.Staff.Supply.Co.,Ltd(YSS), which the Yamato Group has developed as a human resource
business, to World Staffing Co., Ltd. (WSF; a consolidated subsidiaryof World Holdings). In their core business of human resource development, WHD has developed a wide range of human resource businesses, from the manufacturing domain to the service domain. YSS
aims to evolve into a comprehensive human resource service company by utilizing WHD’s human resource management expertise in avariety of industries and occupations to create opportunities formany employees to play an even more active role.

Strengths of YSS and WSF
Consignment
formalContracting/
BPO
Temp staff
placement

Sector

Sector
Logistics

YSS
WSF
YSS
WSF

Administration

Call centers

Service

HR support

Safety education

WSF

WSF

WSF

WSF

YSS

WSF

WSF

WSF

Forklifts

General admin Receive calls

MovingSales admin

Merchandise
management

Make calls

Cash register
In-store
services

Accounting

Leaderoperations

Guide

Warehouse
inspection

Trading admin

Supervisory
work

Cleaning

Sorting

Reception

Picking

Secretary

Drivers

Backroom
work

Strengths of YSS·T rack record in contract
work and temporary
employee placement in
the logistics domain andpossession of knowledge
in the education businessto support safety training
and acquiring qualifications

Strengths of WSF·C overs a wide range of
operations and roles as acomprehensive humanresource service company·P resents rich career plans
to employees

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

29

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Human Resource Strategy Enhancement of Employee-Friendliness and Job Satisfaction for
Diverse Employees
To create a foundation for realizing sustainable growth, we are promoting the cultivation of a corporate culture that respects humanrights and diversity and also the development of a working environment where employees can thrive. Additionally, as a result of measures aimed at increasing each employee’s sense of personal growth through their work and their sense of contribution to the growthand development of the Company, we are improving employee-friendliness and job-satisfaction, which will lead to the further
enhancement of engagement.

1

Fostering of a Corporate Culture that Enhances Employee-Friendliness and Job Satisfaction

With the aim of encouraging mutual understanding throughsmooth workplace communication and creating a working environment of mutual respect for diverse approaches and values,
we began implementing workplace discussions between frontline employees and management from the fiscal year ended
March 31, 2018. In the fiscal year ended March 31, 2023, basedon the analysis of responses to employee awareness surveys
showing that the behavior of managers fosters a sense of unity
in the organization and improves job satisfaction, we added theroles and responsibilities of executives to discussion topics for
operational managers who are leaders, such as sales officemanagers, to address the mindset of operational managers.

 ummary of Workplace Discussions in the fiscal year
S
ended March 31, 2023 (Yamato Transport)
PeriodOctober 2022 to March 2023 (held 87 times)

Participants

Sales office managers, logistics center managers, corporate business branch managers, overseas relocation
support center managers, fine arts branch managers,
and international sales branch managers (2,411 people;
regional branch managers participate as facilitators andhead office and regional executive officers participate
as observers)

Scale of events

Regional branch offices

Amid promotion of structural reforms by the Group, understanding management policies and strategies, communicatingthem to employees, and reflecting them in specific actions havebecome an even more important role of operational managers.
Furthermore, the instillation of Human Resources Management
Policy and the performance of duties and application of evaluations and feedback based on the Definitions of Roles Document
have also become vital roles. We will continue to foster a corporate culture that enhances job satisfaction and employeefriendliness by promoting initiatives that encourage operational
managers to demonstrate their role.

Workplace discussions taking place

Development of an Environment Where Diverse Employees Can Play an Active Role

30

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Manuals in numerous languages* Includes Yamato.Staff.Supply.Co.,LtdTOPIC
PICK UP

Respect for Human Rights and Diversity

As one initiative, we have been implementing the Yamato
Original Universal Manners Test for Yamato Group employees. In the fiscal year ended March 31, 2023, the test was
implemented for all executives and operational managers at
Yamato Transport and we will expand this to all regular
employees in the future. Universal manners identify themindset and actions for addressing a diverse range of
people, including older people and people with disabilities.

 ideo training for Yamato Original Universal
V
Manners Test

Promotion of Advancement for Women in the Workplace
The Yamato Group is promoting the development of an environment that enables diverse employees to play an active role.
In the fiscal year ended March 31, 2023, we implemented adevelopment program for women aiming to become sales officemanagers as a measure aimed at the promotion of women in
management. Under this program, we created development
plans for participants and held training not only with these participants but also their supervisors on the theme of eliminating
unconscious bias. The program encourages motivated employees to play an active role in the Company and has actually
resulted in the promotion of participants to sales office managers. At the same time as promoting development programs, wewill continue to develop an environment where women cancontinue working while balancing their work and life events and

The Yamato Group is promoting initiatives
aimed at developing an environment that does
not leave non-Japanese employees behind in
the workplace. As a result of surveying theapproximately 9,500 non-Japanese employees
working within the Yamato Group*, roughly
90% of whom work at Yamato Transport terminals, we identified that insufficient explanations and understanding related to work
content, caused by language, led to inconvenience and difficulties with work. To eliminate
this issue, we have developed manuals innumerous languages that contribute to theunderstanding of work content, and areencouraging their utilization in the workplace.
Going forward, we aim to develop an environment that is employee-friendly and rewarding
for non-Japanese employees through initiatives
including multilingual support at our in-house
consultation contact point.

At the same time as setting out the Yamato Group Human
Rights Policy and Basic Policy on Diversity and developing anenvironment where human rights and diversity are respected,
enabling employees to play an active role in the Company,
we are engaging in the creation of an enriched society, suchas promoting the development of local communities throughco-creation, by addressing various social issues.

ImplementationFace-to-face group discussions
method2

Employment Support for Non-Japanese Employees

will provide regular support, such as introducing female rolemodels, who play a role as leaders, through internal
newsletters.

 evelopment program for women aiming to becomeDsales office managers (sales office manager training)

The Universal Manners Test is for systematically learningand acquiring these skills. We can contribute to achieving asociety that respects human rights and diversity by gaining
the knowledge necessary for improving universal manners,
such as appropriate support for customers, including older
people and people with disabilities, in receiving and sending parcels at home and at TA-Q-BIN sales offices, andthrough promotional activities centered around customer
service representatives.
Note: One characteristic of the Universal Manners test is that people withdisabilities supervise the curriculum and work as instructors. Mirairo
Inc. hosts and conducts the test, which has been certified by theJapan Universal Manners Association.

Please see our corporate website for details on
the various policies.
Yamato Group Human Rights Policy

https://www.yamato-hd.co.jp/english/csr/esg/
pdf/policy02.pdf
Basic Policy on Diversity

https://www.yamato-hd.co.jp/english/csr/esg/
pdf/policy03.pdf

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

31

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Digital Strategy
Value Creation Utilizing New Digital Platform and Digital Data

The Yamato Group has positioned digital strategy as one of the fundamental strategies that support business structural reforms.
Therefore, we are reinforcing the digital organizational capabilities, technological capabilities, quality, and governance of the entire Group.
Based on a new digital platform that understands and communicates various information in real time, we are effectively utilizing data inbusiness activities while expanding the value we provide to customers and accelerating the enhancement of operational efficiency.

 Reform of Development and Operational Structures and Reinforcementof Governance1

 reation of structure that promotes the integration of business and digital departments
C
Revision of development and operational structures, entrusted to system subsidiary, through Group reorganization
 evelopment of human resource cultivation and recruitment measures aimed at further reinforcing development and operationalD
structures
Includes revision of human resource system, reinforcement of recruitment, and development of technological capability training process eduction of vendor dependence on development projects
R
Reinforcement of technological regulations through Technology Governance Team einforcing governance of Groupwide digital investments
R
Promotion of maintenance and enhancement of development quality and speed, and optimization of development and operationalcosts by closely examining their validity and order of priority of digital investments at Digital Governance Meetings

Digital Investment
Under the medium-term management plan “One YAMATO 2023,”

Meetings, which regulate Groupwide digital investment. Between

we expect to make digital investments of ¥100 billion in thethe fiscal year ended March 31, 2021 and the fiscal year ended

three years spanning the fiscal year ended March 31, 2022, to the

March 31, 2022, we mostly completed investments in building ayear ending March 31, 2024. During the actual promotion of digi-

new digital platform. From the fiscal year ended March 31, 2023

tal strategy, we carry out the necessary investments after closely

onward, we will prioritize investments that enhance the value we

examining their validity and priority through Digital Governanceprovide to customers and contribute to operational efficiencies.

Trends in Digital Investment AmountResults of Digital Investment
Digital Investment

2022/32023/3

Enhancement of value provided tocustomers¥8.0 billion¥4.7 billion

Improvement of operational efficiency fortransportation and delivery¥6.2 billion¥5.2 billion

Creation and maintenance of digitalplatform¥11.8 billion¥1.5 billion

Others¥1.8 billion¥0.5 billion

Total¥27.8 billion¥11.9 billion(¥ billion)

20.0–
30.0* 30.0*

27.8

30
25

17.9

20

11.9

15
10

6.0

5
0

2020/32021/32022/32023/32024/32027/3* Estimated amount as of the start of the fiscal year ending March 31, 2024

Development and Recruitment of Human Resources
Additionally, we have strengthened systems for bringing nec-

resources with digital skills and strengthening of technologicalessary development and operation in-house by reinforcing thecapabilities through close cooperation between the Digital

hiring of new graduate recruits and mid-career hires and devel-

Department and Business Department to realize sustainable

oping the human resource system and training process.

Under the Yamato Digital Academy (YDA), a digital training program launched in the fiscal year ended March 31, 2022, we spent
the first year engaging in measures such as enhancing fundamental digital literacy and skills. In the fiscal year ended March 31,
2023, the second year, in addition to the above, the DigitalInitiatives Aimed at Development of Human Resources
with Digital Skills (Fiscal year ended March 31, 2023)
VisionContent of Training

Attendance
Results

DigitalDepartment

Recognized as a partner bybusiness department leadership and at the core of project
promotion

Training aimed at strengthening skills necessary in work as
digital-specialized personnel,
such as planning, development, operation, andmaintenanceApproximately
220 employees

Business
Department(Head Office)Collaborate with the digitaldepartment, promote businessstructural reforms, and contribute to enhancing profitability

Training aimed at enhancing IT
literacy and digital skills

Approximately
130 employees

Business
Department(Regional
Branches)

Master digital tools to promote further advancement
and efficiency through devices
unique to the front line

Training aimed at reinforcing
digital utilization skills on thefront line

Approximately
200 employees

TargetDepartment and managers in charge of practical work in theBusiness Department (Regional Branch Offices), which deals withcustomers on the front line, promoted gaining skills and knowledge that can be utilized in actual work, increasing the rate of inhouse system development and operation, and enhancing theefficiency of front-line operations and quality of service.

32

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Total

Enhancement of Last Mile Operation Efficiency
That Utilizes Digital Data

In promoting the structural reform of network operations, we are engaging in measures within the existing TA-Q-BIN network that include appropriate allocation of
Yamato resources in line with workload, consolidation and enlargement of sales
offices, and revision of sales driver (SD) workstyles and structure. Area Management
System, a tool developed to support the design of delivery areas and routes for SDs,
who are responsible for last mile, consolidates information on the parcels for pickup
and delivery (such as area, time, person responsible, classification, and volume) andvisualizing it on a map. As a result we have significantly reduced the time needed todesign areas and routes, which previously required analogue data aggregation andstudy and are promoting the enhancement of delivery operation productivity by SDs
based on data.
Additionally, in conjunction with consolidation and enlargement of sales offices,
we will introduce a mechanism (Last-mile Management System) for flexibly adjusting
the delivery area and route in response to fluctuations in daily workload in thesecond half end of the fiscal year ending March 31, 2024. We will further enhance
operational efficiency by integrating this with measures for innovating SD workstyles
and structure, such as allocation of Delivery Drivers (DD, specialized for delivery) in
key urban areas.

2

Creation and Development of EC Logistics Network

Under our EC logistics network, we are creating and expanding terminals specialized
for dispatching EC parcels (EC sorting centers) and EC delivery centers in collaboration with business partners. In this collaboration, Yamato Transport provides an operation system that links data, such as parcel information and customer requests forchange, in real time,
thereby enhancing
Real-Time Connection of YDP and EC Logistics Network
service quality andoperational effiEC logistics network system
YDP
Delivery support system (administrative operations)ciency throughParcel information
Dashboard/Ring
scanner (center operations)smooth manageStatus information
CDA, a delivery app(delivery operations)ment of business
Real time collaboration
partner operations.

Before Revising Areas
and Routes

After Revision

108

138

109
79

Course A volume of parcels: 138

Course A volume of parcels
excluding area framed in red: 108

Course B volume of parcels: 79

Course B volume of parcels
including area framed in red: 109

Area Management System Image
By confirming the volume of parcels by area basedon various factors, including delivery day and time,
information such as fluctuation in volume anduneven workload for each SD can be quickly
understood, leading to a revision of routes.

3A dvancement ofFulfillment Service

In the operation of the fulfillment service
that acts as an agent for a series of operations, from ordering products to their storage and shipping, order data from anorder management system for EC operators is linked in real time to shipping operations. This improves the efficiency ofshipping operations in warehouses,
reduces dead stock, and shortens leadtimes, thereby contributing to theenhancement of customer experiences.

 nhance efficiency of administrative operations through definition of operationalEstandards and digitalization

The Yamato Group is engaging in the development of humanbusiness growth.

We are supporting the expansion of the value we provide to customers and the enhancement of operational efficiency from a digital
perspective by utilizing the Yamato Digital Platform (YDP), our new digital platform, which understands various data in real time andcollaborates with internal and external systems.

 lexibly respond to changes in workload by visualizing workload and progress ofFwork in real time, etc.

TOPIC

Selection of DX Stocks 2023
Yamato was selected for Digital Transformation Stocks (DX Stocks)* 2023. During this selection, we were recognized for our efforts to promote business structure reforms in responseto the changing times, to promote the transformation of each customer’s entire supply
chain and enhance operational efficiency based on data analysis, and to create an organization and corporate culture. We will continue advancing initiatives for business structure reforms based on a structure for promoting data utilization through collaboration between the Business Department and Digital Department.
* Organized jointly by the Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and the Information-technology Promotion Agency, Japan toselect and introduce TSE-listed companies that create in-house systems for enhancing corporate value while promoting DX and displaying outstanding performance in utilizing digital technology

Approximately 550 employees

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

33

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Environmental Strategy
We are promoting environmentally-conscious management, based on our Environmental Vision, to achieve both sustainable businessgrowth and the development of a sustainable society. To realize our long-term target of achieving virtually zero GHG emissions (in-houseemissions) by 2050 and medium-term target of a 48% reduction in GHG emissions by 2030 (compared with the fiscal year ended March
31, 2021), we will promote measures to reduce such emissions, such as the introduction of EVs and solar power generation equipment
in conjunction with facility strategies in the structural reform of network operations based on climate change-related risks and opportunities. At the same time, we will expand the corporate business domain by supporting the creation of supply chains with a low environmental burden and visualizing GHG emissions in relation to customer needs, such as reducing GHG emissions related to logistics.

Overview
ACTIVITYOUTPUT/OUTCOME

Basic initiative

Reduction of GHG Emissions by Promoting Green
Innovation

Environmental Vision

Long-Term Environmental Targets“Connect. Deliver the future via
green logistics”

Introduction of EVs, solar power generation equipment, and LEDs,
and promotion of measures including the reduced use of dry ice,
linked to facilities strategy for structural reform of network operations, together with utilization of electricity generated from renewable energy sources, thereby steadily reducing GHG emissions

GHG emissions
 edium-term target (2031/3):
M–48%*2
Short-term target (2024/3): –10%*2

20,000 EVs
810 units of solar power generation equipment
Zero use of dry ice evelopment of emissions visualization tools based on ISO
D
14083:2023, an international standard for calculating GHG emissions in the logistics domain

Value Creation

 edium-term target (2031/3): 70%
Mof total
Short-term target (2024/3): 40% of
total*3*3 W
 e added 10% to our original targetof 30% to achieve our overall targets
for reducing GHG emissions

Visualization of Customer GHG Emissions HG Emissions/Percentage of Electricity Generated via
G
Renewable Energy Sources(Thousand tCO2e)(%)
1,000

Enhancement of Value Provided to
Customers

Baseline (2)%

(7)%

(10)%

80

70%

(Support for Creation of Supply Chains with Low

921

902

In promoting each measure aimed at reducing GHG
emissions, creating a balance between EV operation andcharging is an issue in the logistics industry. Since EV
operation and solar power generation both occur during
daylight hours, it is vital to create a mechanism for balance
between operation and charging. Additionally, there areconcerns over issues including supply shortages due to asudden increase in demand for electricity generated via
renewable energy sources and insufficient capacity in thenecessary systematic power transmission. As acountermeasure, Yamato Transport is engaging in establishingenergy management responsible for battery detachment,
Demonstration period/Area

860

500

22%

Contribute to reducing GHG emissions by optimizing logistics
and inventory through transformation of each customer’s entire

As one key measure for reducing GHG emissions, the Yamato Group is promoting the introductionof EVs. Our demonstration tests to date have been able to confirm effects including the reductionof GHG emissions, efficiency in pickup and delivery operations, and reducing operational burden.
We have introduced 540 Hino Dutro Z BEV, ultra-low-floor walkthrough, small-sized commercial-use
EVs, mainly in urban areas (as of August 2023). We will continue toengage in introducing EVs with environmental functions and practicality together with car manufacturers.
We are also promoting measures such as installation of solar
power generation equipment at our bases, use of electricity generated via renewable energy sources, switching to LEDs at bases, andSmall-sized commercial-use EV, Hino
utilization of transportation materials that do not use dry ice.

40%

40

(48)%

11%

250

supply chain

20

0%
0

2021/302022/32023/32024/3
Target2031/3
Target2051/3
TargetGHG emissions (left)
Percentage of electricity generated via renewable energy sources (right)(Units)
40,00030,00036,902
31,29220,00010,0000

2019/32020/32021/32022/32023/3

Electric vehicles (EVs)
New long-term compliance vehicles
Hybrid vehicles
Compressed natural gas (CNG) vehicles
Liquefied petroleum gas (LPG) vehicles

0

replacement, and transportation using cartridge batteries.
As a concrete initiative, we are promoting demonstration
projects in Gunma Prefecture, which have been subsidized by
the New Energy and Industrial Technology Development
Organization (NEDO), a national research and development
agency in Japan. These demonstration projects will include
introducing EVs and solar power generation equipment, as
well as a demonstration of power transmission throughbattery transportation. Additionally, to commercialize
cartridge batteries, we are considering standardization with
the Commercial Japan Partnership Technologies Corporation.

Fiscal Year Ending March 31, 2023, to Fiscal Year Ending March 31, 2031 (Scheduled)/Gunma Prefecture
200 EVs by fiscal year ending March 31, 2024 (introduced 50 EVs as of March 2023)

60

750

Environmental Burden)

Green Innovation

Issues and Countermeasures in the Logistics Industry—Initiatives Aimed at Establishing
Energy Management

Percentage of Electricity
Generated via Renewable
Energy Sources*2 C ompared to fiscal year ending
March 31, 2021

 Reduction in GHG Emissions Through Promotion ofTOPIC*1 In-house emissions of consolidated
companies in Japan and Swan Co.,
Ltd. (Scope 1 and Scope 2)<Fiscal Year Ended March 31, 2022, to Fiscal Year Ending March 31, 2031>

 he Number ofT
Environment-Friendly
Vehicles Owned(Consolidated Group
Companies in Japan)

Dutro Z BEV

Achieve virtually zero*1 GHG emissions by 2050

Part 2

Conversion of all vehicles into EVs and reduction of 5,000 tons of CO2 emissions* generated by vehicles by fiscal
year ending March 31, 2027

KPIs

Conversion of all vehicles into EVs with cartridge batteries and reduction of 7,500 tons of CO2 emissions* generated by vehicles by fiscal year ending March 31, 2031
* Within the demonstration project area, compared to the fiscal year ended March 31, 2021
Note: The prerequisite coefficient for CO2 emissions is 0.000447tCO2/kWh (Ministry of Environment, the emission coefficients of individual power companies, etc.; TEPCO baseCO2 emission coefficient for the fiscal year ended March 31, 2021).
Reference: https://ghg-santeikohyo.env.go.jp/files/calc/r04_coefficient_rev4.pdf (Japanese only)
https://ghg-santeikohyo.env.go.jp/files/calc/r04_coefficient_rev4.pdf

Our Vision for an Energy Ecosystem That Coordinates Electric Vehicles (EVs), Photovoltaic (PV) Systems, and Batteries
Cartridge batteries

Plan for Reducing GHG Emissions to Achieve Medium-Term Targets (2030)
Key Measures
Introduction of 20,000 EVs
Introduction of 810 units of solar power­generation equipment
Introduction of LEDs
70% utilization rate for electricity generated via
renewable energy sources

34

Plan for Reducing GHG emissions

1,000

Baseline

(225)

800

Environmental
investment

600

400

200

Increase in transportation efficiency

09212021/3· EV introduction: (100)· Solar power generationequipment introduction:(110)· LED introduction: (15)Balance between
vehicle operationand charging Cartridge batteries

Systemic
powertransmissions

(442)

Local
communities
Response tonaturaldisasters

On-site PV systems(145)

At the same time, we will take measures to enhance transportation efficiency to cope with the increase inemissions due to businessexpansion

Recipients

Battery transportation(72)
Use ofrenewable Eliminationenergy, etc. of dry ice

Off-site PV systems

Areas hit by
natural disasters

Stationary
batteries
Batterytransportation• Expansion of EV introduction• Expansion of supply capacity for electricity generated via renewableenergy sources both on-site and off-site• Balance vehicle operation and charging by separating the chassis
and battery through EVs that utilize cartridge batteries

Shared battery
infrastructure
Transportationindustry479

2031/3
TargetCreation ofregional
infrastructure

Delivery

Stationary
batteries

Environmental investment​(Thousand tCO2e)

Elimination of dry ice

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

On-site PV systems• Duplication of electricity transmission network by transporting batteries and utilizing systemic power transmissions• Creation of regional infrastructure for transporting batteries andresponding to natural disasters• Creation of a shared battery infrastructure for the transportationindustry

Reduce CO2 emissions
Reduce burden on electricity
system
Support local communities andprovide disaster relief
Stabilize transportation industry

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

35

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Environmental Strategy

Visualization of GHG Emissions—Value Provision to Customers

GovernanceContribution to Reducing GHG Emissions by Transforming Customer Supply Chains
Climate change response has become a key issue at each company and Yamato Group customers have expectations, such as the
reduction of logistics-related GHG emissions. To meet these expectations, the Yamato Group is supporting the reduction of customer
GHG emissions by transforming their entire supply chain, including reviewing the purpose of logistics and inventory holding methods,
and by visualizing GHG emissions.

Examples of Initiatives with Customers
Kubarahonke Co., Ltd. (Food Manufacturer)

Adastria Co., Ltd. (Clothing Seller and Manufacturer)

Yoshinoya Co., Ltd. (Restaurant Chain)

By integrating supply chains that had been individually optimized for each sales channel and product and creating an optimal supply chain from the manufacturing base to the rest of
the country, Kubarahonke and the Yamato Group are conducting environmentally-conscious, sustainable operations andreducing GHG emissions from product delivery.

Adastria and the Yamato Group aim to reduce GHG emissions
by reviewing the purpose of logistics and inventory holding
methods in supply chains that span both Japan and overseas,from raw materials procurement to product production andomni-channel approaches to sales, creating even more effective logistics in terms of management.

Yoshinoya and the Yamato Group are
reducing GHG emissions and surplus
food and material loss by integrating andoptimizing supply chains for direct sales
and wholesalers.

Nihon Michelin Tire Co., Ltd. (Tire Manufacturer)

Colowide Co., Ltd. (Restaurant Chain)

By consolidating approximately 20 warehouses into 5 and visualizing and optimizing
inventory control at each warehouse, we are working to eliminate uneven distribution of
inventory and reduce transportation between facilities, while utilizing networks for corporate clients and other resources to stabilize lead times for delivery of products andreducing GHG emissions. We are also minimizing waste due to expiry (reducing impact
on the environment) through managing overall tire inventory by production year andshipping tires that are closer to the expiration date before others using a management
system that minimizes waste by tracking the production year of all tires in the inventory.

We are working on building a sustainable supply chain with an even lower
environmental burden, eliminating muri
(unreasonableness), mura (inconsistency), and muda (waste), by visualizing
and optimizing the entire supply chain,
which was previously divided by company and difficult to view as a whole.

The Yamato Group deliberates and seeks to resolve environmental
issues, including climate change, based on its system for environmental management, with the Environment Committee as a decision-making body, and the Board of Directors supervising the statusof execution. The president serves as chairperson of the YamatoGroup Environment Committee and is the supervisor responsible forenvironmental management. Further, important matters, such as
basic policies related to environmental issues, which include climatechange discussions by the Yamato Group Environment Committee,
are debated and decided on at Management Committee meetings,

which operates above the Environment Committee, and Board of
Directors or management meetings. Executive officers in charge ofthe environmental field, regional directors, and presidents of Group
companies are responsible for environmental issues, in addition to
being responsible for the reliable implementation, maintenance, andsupervision of environmental management, including preparing necessary management resources. As a general rule, all managers andheads of frontline organizational structures are also responsible formanaging environmental risks and opportunities, including climatechange, as environmental managers.

Strategy
STEP 1

Assessment of Risk Importance

The Yamato Group will look ahead to the period between the fiscal year ended March 31, 2022, and the fiscal year ending March 31, 2024–which is the period of the
Sustainable Medium-Term Plans 2023 [Environmental], set as the fiscal year for medium-term targets, and 2050, which has been set as the fiscal year for long-term targets,with reference to the targets formulated by the Japanese government for reducing GHG emissions. We will consider transition risks, such as the introduction of policies andregulations by the Japanese government and changes to market needs, and physical risks, such as abnormal weather brought about by climate change, and will respond torisks and opportunities by reflecting them in the Group’s strategies.
We evaluated physical risks, such as the suspension of operations due to the increasing severity and frequency of abnormal weather and expanding repair costs owing
to damage to and loss of facilities and equipment caused by abnormal weather, as short-term risks. Furthermore, we evaluated the transition risk of increasing costs due tothe introduction of a carbon tax as a result of revised policies and laws as a medium- to long-term risk. Meanwhile, regarding opportunities, we also identified significant
potential for future financial benefits, such as falling costs due to energy conversion and increased efficiency, in line with the low-carbon transition, and increasing revenues
supported by customers with a heightened awareness of our proactive, environmental response to climate change mitigation and adaptation. Going forward, we will continue to assess the impact of the risks and opportunities that may arise.

Development of GHG Visualization Tools Based on International Standards
Yamato Transport is advancing the development of GHG emissions visualization
tools based on ISO 14083:2023, an international standard for calculating GHG
emissions made by transportation that was issued on March 20, 2023. This
international standard calculates GHG emissions from not only trucks for transportation but also from various methods such as air and marine transportation,
as well as from terminals. Through such visualization tools, we will make evenmore realistic calculations for GHG emissions from transportation by Yamato
Transport, which correspond to Scope 3* emissions for corporate clients. We
aim to use these visualization tools globally.
* GHG emissions in the supply chain made by companies indirectly

PICK UP

Conventional
Calculation of emissions using
coefficients based on monetaryamount or physical volume

After creation ofvisualization tools
Calculation of emissions byaggregating each process inactual transportation operation
Measures for reducing
emissionsIntroduction of EVs and solar
power generation equipment, etc.

Physical
GHG
volume emissions

Physical
GHG
volume emissions

Cannot visualize
reduction efforts

Can visualize
reduction efforts

Increasing Need for International Standards

Climate change response is an urgent issue for the entire international society. As a result, many companies have adopted a target ofvirtually zero GHG emissions and are advancing various initiatives. Additionally, businesses are now required to respond on not only an
individual company basis but throughout the entire supply chain, such as by making the reporting of GHG emissions related to products a condition of business transactions with suppliers. Each company and country have adopted various standards for calculating
GHG emissions in the logistics industry. However, with the advancing globalization of the supply chain, the need for international standards has increased. When global calculation standards did not yet exist, the Yamato Group signed a basic agreement with the largest
European home delivery company, the DPDGroup, aimed at environmental-based cooperation. We are actively engaging in measures
such as participating in the formulation of ISO14083:2023, an international standard related to methods of calculating and reporting
GHG emissions from transportation, leading to the development of emissions visualization tools based on international standards.

Initiatives Based on the Recommendations of the TCFD
The Yamato Group understands that revealing the risks and opportunities faced by and presented to society and the Company by climate change issues, evaluating the impacts thereof, and formulating countermeasures are essential for the sustainability of the business. We have carried out scenario analyses of Yamato Transport in the fiscal year ended March 31, 2022, based on therecommendations of the Task Force on Climate-related Financial Disclosures (TCFD). While enhancing the sustainability of the Groupby clarifying the business impacts of climate change and engaging in countermeasures focused on issues that have a significant
impact, we will enhance corporate value by holding dialogues with stakeholders.

36

YAMATO HOLDINGS CO., LTD.
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STEP 2

Definition of Scenario Categories

Under scenario analysis conducted in the fiscal year ended March 31, 2022, we predicted
two scenarios for Yamato Transport, based on information*1 from the Intergovernmental
Panel on Climate Change (IPCC) and the International Energy Agency (IEA).
*1 Includes the RCP8.5 global warming scenario created by the IPCC as well as the Net Zero
Emissions by 2050 Scenario, Sustainable Development Scenario, and Stated Policies Scenario
created by the IEA*2 Referencing the 2ºC scenario when no scenario exists for 1.5ºC

STEP 3

Evaluation of Business Impact for Yamato Transport

Evaluation of financial impact
due to introduction of acarbon tax

Calculation of business impact in 2030 and 2050
related to settlement[s] following the full-scale
introduction of a carbon tax
By 2030: ¥13.3 billion
By 2050: ¥25.6 billion
Note: Estimated using carbon tax prices of $130 per
ton (2030) and $250 per ton (2050)

Financial impact assessment
regarding decreasing revenues
and increasing repair costs forfacilities and equipment due
to abnormal weather anddisasters

Trial calculation of business impact of decreased
revenue due to abnormal weather, such as heavy rain
resulting from increasingly severe typhoons and linear
rainbands, and repair costs for damaged facilities andequipment
By 2030: ¥1.9 billion
By 2050: ¥3.8 billion
Note: Calculated by referencing past disasters

We determine the business impact by referencing energy-related indexes, such as the
carbon pricing published in the World Energy Outlook by the IEA. Furthermore, to understand changes in trends, we reference data, including the frequency of flooding, publishedby the Japanese Ministry of Land, Infrastructure, Transport and Tourism; the Ministry of
Education, Culture, Sports, Science and Technology; and the Japan Meteorological Agency
in light of climate change.

1.5ºC
Scenario*2

The incurrence of costs associated with reducing GHG emissions
will become necessary and we must enforce stricter regulations
and higher fuel and electricity costs; however, sustainability is the
key to creating and offering competitive products.

4ºC
Scenario

While we will continue to practice our current style of management, incurring costs to address damages from natural disasters
in each area of operation will become necessary.

STEP 4

Direction of Countermeasures• Implementation of measures to achieve targets for reducing GHG emissions by 2030
(48% reduction compared with the fiscal year ended March 31, 2021)
Introduction of 20,000 low-carbon vehicles (mainly EVs), installation of 810 units ofsolar power generation equipment, etc.
Expected result: Reduction of business impact due to introduction of a carbon tax
by 2030 (¥6.1 billion decrease)• Implementation of measures to achieve targets for climate neutrality by 2050
Introduction of low-carbon vehicles, including EVs with cartridge batteries, further
installation of solar power generation equipment, improvement of usage rate for electricity generated via renewable energy sources, reinforcement of other measures, etc.
Expected result: Elimination of business impact due to introduction of a carbon tax
by 2050• Examination of introducing internal carbon pricing with the aim of proactive capital
expenditures in low-carbon transition• Opening of stores by utilizing hazard maps and periodic reviews of our business continuity planning manual• Examination of disclosing information on efforts to adapt to climate change internallyand to our business partners• Testing for use of renewable energy and EVs with cartridge batteries that enhance
resilience• Reevaluation of business impact going forward while adding extra prerequisites, suchas enhancing predictions for location and scale of occurrences of incidents, and continuous examination of countermeasures

Risk Management

Indicators and Targets

Yamato Holdings has created a dedicated department responsible
for promoting the Groupwide response to climate change.
Additionally, we are promoting said response by deploying an environmental officer (president and representative director) and an
environmental promotion representative to each Group company.

We will implement measures for achieving GHG emissions reduction
targets (see page 34) and create green logistics in collaboration withour business partners to reduce GHG emissions across the entire
value chain (Scope 3). At the same time, we will consider the feasibility of acquiring certification for achieving the 1.5ºC target of the
Science Based Targets* initiative.
* Targets for reducing GHG emissions set by companies for the next five to ten years, inline with the levels required by the Paris Accords

For details on initiatives based on TCFD recommendations, please refer to our corporate website.
https://www.yamato-hd.co.jp/english/csr/environment/tcfd.html

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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Part 2

Part 2

Strengthening of Sustainable Management
At a time when society as a whole is facing many urgent issues that must be addressed, such as climate change, the declining workforce, human rights, and inequality, it is becoming increasingly important that all corporations also respond to such social issues.
Based on these circumstances, the Yamato Group is promoting sustainable management with the aim of realizing the improvement of
medium- to long-term corporate value and a sustainable society.

Vision for the Environment and Society
Environmental Vision

Material Issues

Refine Choices for Material Issues

STEP1

Based on risks and opportunities in the Yamato Group’s businesses,
we identified important material issues that contribute to realizing asustainable society and improving medium- to long-term corporate
value. Among these issues, we recognize that Energy & Climate,
Labor, Human Rights & Diversity, and Data Utilization & Security havea particularly significant impact on the Group’s sustainability. As
such, we are promoting initiatives in conjunction with business structure reforms.

Hold Stakeholder Dialogues (November 2019)

STEP2

STEP3

Connect. Deliver the future via green logistics
The Yamato Group will further promote its vision of “Connect. Deliver the future via green
logistics.” By leveraging cutting-edge connections between data, people, and resources, wewill increase the efficiency of transportation and provide delivery services that are betterfor the planet, our customers’ lifestyles, and the economy. We will also support a strong,smart society by striving toward virtually zero GHG emissions*1 and by creating businessmodels based on sustainable resource use and consumption.

Material Issues

Themes of Initiatives

Atmosphere

Through co-creation and fair business activities,
help create a society that “leaves no one behind”*2
As a social infrastructure company, the Yamato Group will contribute to improving thequality of life of various people, including employees and customers, by reducing and eliminating various inequalities and obstacles in society. We will do this by delivering goods
and value to everyone through fair and efficient business processes.
By promoting digital innovation and our strengths offline, as well as co-creation with various partners, we will be a leader in solving social challenges and creating a society thatleaves no one behind.

Resilience ofCompanies & Society

Labor

Human Rights &Diversity*2 To leave no one behind: A basic philosophy of the SDGs
Safety & Security

Sustainability Promotion System
The Yamato Group discusses and makes decisions on sustainability matters at the Management Committee meetings and Board of
Directors meetings. To promote sustainable management, the Yamato Group Environment Committee and Yamato Group Social
Promotion Committee, which are chaired by the president and comprise the executives (including senior managing executive officers
and managing executive officers) of Yamato Transport, meet once a year to discuss and make decisions on issues related to sustainability. Further, four subcommittees in the environmental field (energy, climate, and pollution; resources and waste; management andcollaboration; and products and services), and three subcommittees in the social field (human rights and diversity; supply chain management; and local communities) each meet three times a year, considering measures and implementing progress checks.

Data Utilization &Security

Supply Chain
Management

Community

Identifying Material Issues (January 2020)
At the same time as identifying material issues, we formulated thetransformation plan “YAMATO NEXT100” as a grand design for management
reform over the medium to long term.

Risk/Opportunity

Mitigate climate change

Risk

Clean up the skies(prevent air pollution)

Pursue transportation that reduces the effects of
air pollutants emitted by vehicles and cleans up
skies in local communities

Risk

Drastically reduce our environmental burden andpromote the use of technology and creation ofopportunities for minimizing environmental
impact

Risk

Opportunity

Support a society that
combats environmental
changes

Collaborate with diverse partners to increase theresilience of stakeholders and local communities
and create environmental value

Risk

Opportunity

Create a work
environment where
employees can thrive

Implement a high-value-added model labor andpromote “decent work”

Risk

Opportunity

Create a corporate culturethat respects humanrights and diversity

Respect human rights, recognize diversity, andcreate a framework for human rights due
diligence

Risk

Opportunity

Create initiatives to carryout business in a safe andsecure manner

Maintain traffic and labor safety and provide
reliable service

Risk

Create an information
security infrastructure

Create an information security infrastructure andbusinesses that utilize data to resolve social
issues

Risk

Opportunity

Develop a common
understanding withstakeholders

Build a stable business infrastructure throughsound, resilient supply chains

Risk

Opportunity

Create corporate
citizenship activities thatare rooted in local
communities and create aframework for businesscreation

Establish corporate citizenship activities that are
unique to the Yamato Group.
Create a business model that revitalizes local
economies

Promote resource
conservation and reduce
Resource Conservationwaste& WasteSocial Vision

VisionWe invited experts from universities, international institutions, and securities
companies and exchanged opinions on material issues and the expected roleof the Yamato Group in solving environmental and social issues.

Reduce GHG emissions by using electricity
generated via renewable energy sources,enhancing transportation efficiency through theutilization of digital technology, and reducing theuse of dry ice, etc.

Energy & Climate*1 In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2)

Based on international frameworks, such as the GRI Standards, the Sustainability
Accounting Standards Board (SASB), ISO 26000, and the Sustainable
Development Goals (SDGs), as well as ESG research items that investors consider to be of high importance to the Group’s business, we considered therisks and opportunities of the Group’s business and narrowed down candidates for material issues.

Related SDGs

Opportunity

Opportunity

Yamato Holdings Board of Directors
Yamato Holdings Management Committee
Yamato Group Environment Committee

Yamato Group Social Promotion Committee

Yamato Group Environment Subcommittee

Yamato Group Social Subcommittee

Key Initiatives to Strengthen Sustainable Management
2020

2021

2022

2023

Formulation of vision for the environment and society and long-term targets
GeneralFormulation of Sustainable Medium-Term Plans 2023
Creation of Sustainability Promotion System

Yamato Transport

Group Companies

Environment Committee

Environment Committee

Environment

Regional Environment Committee
Regional Branch Office Environment Committee evelopment of Environmental Management
D
System (EMS) ormulation of Yamato GroupF
Environmental Policy

Announcement of mid-term targets for reducing GHG emissions by 2030
Announcement of third-party verification related to performance in reducing GHG emissions
Announcement of support for TCFD recommendations and results of scenario analysis

Formulation of Yamato Group Human Rights Policy
SocialFormulation of Yamato Group Responsible Procurement Policy

 ormulation of Yamato Group HumanF
Resources Management Policy

Formulation of Yamato Group Business Partner Guidelines

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Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Sustainable Medium-Term Plans 2023

Part 2

Details on Sustainable Medium-Term Plans 2023 can be found on our corporate website.
https://www.yamato-hd.co.jp/english/csr/

In order to promote sustainable management, the Yamato Group has set out specific actions to address material issues in Sustainable
Medium-Term Plans 2023. In the fiscal year ended March 31, 2023, the second year of these plans, we announced our mid-term environmental targets for reducing GHG emissions by 2030 and are engaging in measures to reduce GHG emissions such as through the introduction of
EVs and solar power generation equipment. Regarding social aspects, we are developing an environment that respects diverse humanresources and enables employees to play an active role. At the same time, we are engaging in measures to promote addressing social issues
and community development through co-creation.

For ESG-related numerical results, please see “ESG Data.”
https://www.yamato-hd.co.jp/english/csr/esg/performance.html

Medium-Term Environmental Plan 2023
Material Issues

Energy & Climate

Mitigate climate change

Atmosphere

Clean up the skies (prevent air pollution)
Resource Conservation & Waste

Promote resource conservation
and reduce waste
Resilience of Companies & Society

Support a society that combats
environmental changes

Targets for the Fiscal Year Ending March 31, 2024

Progress in the Fiscal Year Ended March 31, 2023

Examples of Initiatives• Introduction of EVs (868 vehicles as of March 2023)• Introduction of solar power generation equipment (11 units as of March 2023)•S witch to a menu of electricity generated via renewable energy sources• L aunch of construction for systems related to optimization of EV operations, standardization of
charging, and flexible inter-base power distribution• Improvement of loading efficiency per vehicle based on data visualization• Implementation of a modal shift•C onsolidation of TA-Q-BIN sales offices• Introduction of LEDs (1,241 locations as of March 2023)

 educe GHG emissions 10% compared with the fiscal year ended
R
March 31, 2021*1

7% decrease educe GHG emission intensity 10% compared with the fiscal year
R
ended March 31, 2021*1,*2

6% decrease chieve 30% usage rate of electricity generated via renewable energyAsources*3

22% usage rate

 educe NOx and PM emissions from vehicles 25% compared with theRfiscal year ended March 31, 2021*4

NOx emissions: 23% decrease/PM emissions: 22% decrease • Holding of discussions and continuation of technical checks on automated mobility with suppliers

Introduce vehicles that emit fewer air pollutants

Introduction of environmentally-friendly vehicles

 se 55% renewable resources and recycled materials for paperUmaterials*5

63%Reduce landfill disposal rate (final disposal rate) to 5% or less*7%

 rovide products utilizing recycled materials and resource savingPmaterials

Switch to recycled materials and resource saving materials inall 19 applicable materials

Advance green logistics in collaboration with our business partners

 romotion of developing an environment for calculating theP
GHG emissions of our transportation partners

 ollaborate with society to improve environmental resilienceC(verify and share information about mitigating climate change) iscussions regarding development and utilization of carD
tridge batteries for EVs

Provide environmentally friendly products and services*7

Launch of development of tools to visualize GHG emissions

6

that contribute to low-carbon transportation and the prevention of air pollution• Introduction of environmentally friendly vehicles (36,902 vehicles, including EVs, as of March 2023)•E xpansion of renewable resources and recycled materials for containers andpackaging material utilization• Improvement of methods for waste treatment and separation• L aunch of development of materials for reuse and common reusable materials• L aunch of data collection to calculate GHG emissions of transportation partners• Implementation of studies aimed at standardization and commercialization of removable andportable cartridge batteries for EVs• L aunch of development for tools to visualize GHG emissions based on the international standard ISO 14083:2023*9

Medium-Term Social Plan 2023
Material Issues

Labor

Create a work environment where
employees can thrive

Human Rights & Diversity

Create a corporate culture that respects
human rights and diversity

Safety & Security

Create initiatives to carry out businessin a safe and secure manner

Data Utilization & Security

Create an information security
infrastructure
Supply Chain Management

Develop a common understanding
with stakeholders

Targets for the Fiscal Year Ending March 31, 2024

11.2% increase educe overtime for employees 20% compared with the fiscal year
R
ended March 31, 2021

7% decreaseAchieve 90% annual paid leave utilization

98.1%

Achieve 100% attendance at human rights training for all employees

100%Ensure percentage rate of employees with disabilities is 2.5%

2.9%


Doublethe number of women in management (executives) compared with the fiscal year ended March 31, 2021, and ensure 10% of
all managers are women1.1 times (369 women)/5.7%

 chieve zero serious traffic accidents (fatal traffic accidents for whichA
the Company is responsible)*3

Zero educe number of traffic accidents (where bodily injury occurs) 50%
R
compared with the fiscal year ended March 31, 2020*3

16% decrease (216 accidents)

Achieve zero serious occupational diseases (work-related deaths)*3

Zero educe frequency of lost workday injuries*8 by 20% compared withR
the fiscal year ended March 31, 2020*3

8.9% increase evelop an infrastructure for creating businesses that utilize data toDresolve social issues

 evelopment of infrastructure for creating businesses thatDutilize data to resolve social issues

Achieve zero serious information security incidentsZero nsure 100% deployment of information security managers at major
E
organizations and 100% implementation of training for information
managers*4

 nsuring 100% deployment of information security managE
ers at major organizations and 100% implementation oftraining for information managers

 omplete development and demonstration of monitoringC
framework*4

Implementation and completion of monitoring tests andverification for key suppliers

Community

Create corporate citizenship activities thatare rooted in local communities and createa framework for business creation

Progress in the Fiscal Year Ended March 31, 2023

Improve operating revenue per employee (compared with the growthrate for the fiscal year ended March 31, 2021)

 omplete development of a framework to measure effectiveness ofC
corporate citizenship activities and business in resolving social issues

Examples of Initiatives• Implementation of workplace discussions for all business managers at Yamato Transport•C ompletion of formulating definitions of duties for occupations and roles•R evision of development system for regular university graduate hires•F ormulation of Yamato Group Human Resources Management Policy•C ompletion of development for multi-lingual tools, such as documents related to recruitment
and health and safety and training manuals• Implementation of training programs for female employees aiming to become sales officemanagers• L aunch of creating manuals for standardizing methods for recruiting and retaining people withdisabilities•P rovision of coaching through ride-along guidance and dashcam videos• Implementation of safety training and skill tests for safety experts• Introduction of vehicle safety equipment (electric parking brakes and wide-angle rear cameras)•C reation of occupational health and safety management system• L aunch of operation for contact points that utilize data
• Information security training for all employees at Yamato Transport (100% attendance rate)• Implementation of on-site and internal audits aimed at continued ISMS certification• Implementation of monitoring tests for key suppliers at 28 companies•D ecision on how to advance monitoring in the fiscal year ending March 31, 2024 (standards forselecting key suppliers, methods for implementing monitoring, and structure for contracts andpromotion)

 xamination of deploying people to promote corporateE
citizenship activities within the Company•E xamination of creating a mechanism to encourage employee participation incorporate citizenship activities
Examination of mechanisms and in-house support structures • C ompletion of creation of support system aimed at creating an in-house environment to create
for creating businesses that resolve social issues, contributing projects on local (social) issues

to business growth*1 In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2) *2 tCO2e/operating revenues of ¥100 million*3 For consolidated companies in Japan and Swan Co., Ltd. *4 For Yamato Transport *5 Paper materials refer to cardboard for shipping, pickup and delivery materials, etc.
*6 Equivalent to reduction by half compared with the past *7 Products and services with environmental value and a low burden on the environment*8 Number of work-related fatalities and injuries per million working hours *9 Standards for calculating and reporting GHG emissions from transportation

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DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

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Part 2

Measures That Support Sustainable Growth
Community

Safety Initiatives
Based on its stance of respecting human life and ensuring safety, as laid out in the Group Corporate Philosophy and Corporate Stance,
the Group thoroughly adheres to its philosophy of placing safety first and business second in the workplace, positioning respect forhuman life as a priority at all times. Our partner companies and business partners also share our philosophy of respecting human lifeand ensuring safety and endeavor to ensure safety in all of their business activities.

The Yamato Group conducts business activities deeply rooted in communities by developing a logistics network across Japan.
Co-existence and co-prosperity with members of local communities are vital for sustainable growth and we aim to create social value
and economic value by resolving social issues at the same time as collaborating and co-creating with partners.

TOPICS

Initiatives for Ensuring Safe Transportation
The Safety Department of the Corporate Division at the head
office of Yamato Transport is at the center of promoting initiatives for ensuring even greater safety. We are taking steps toimprove the frontline working environment through efforts
including the creation of a system for training safety experts andthe enhancement of safety training. At the same time, we arepromoting the integration of Groupwide standards and frameworks for safety management. We share key points for safe driving and other information by releasing safety communication
tools for transportation partners.
We are also continuing to work on hardware aspects, such as
introducing vehicle safety equipment connected to preventing
traffic accidents, in addition to software aspects, such asenhancing the skills of drivers. For example, we have been introducing various equipment to Yamato Transport pickup anddelivery vehicles, including electronic parking brakes that aim toprevent accidents involving vehicles moving when unattended,Introduction rate for vehicle safety equipment

wide-angle rear-view cameras that reduce accidents whenreversing by vertically and horizontally widening the driver’s fieldof view, and brakes that reduce collision damage by detecting
obstacles, sounding an alarm to alert drivers, and assisting withbraking operations. These innovations will lead to reducing thenumber of accidents. Furthermore, we have decided to purchase
only new automatic vehicles for pickup and delivery, aiming to
reduce the burden of driving operations and address the recruitment and retention of new drivers, mainly young people.
To develop an environment in which Yamato Group and partner company employees can carry out loading and unloading
operations more safely, in conjunction with the consolidationand enlargement of TA-Q-BIN sales offices in the structuralreform of networks and operations, we are promoting measures
including the installation of arrival berths and introduction of lift
tables for large size vehicles to avoid the use of forklifts atnewly developed large-scale bases.

Wide-angle rear-view cameras

Contributes to safety by showing an even wider view from behind vehicles(130° vertically and 170° horizontally)

Scope: Yamato Transport pickup and delivery vehicles

2020/3 2021/3 2022/3 2023/3
Electronic parking
brakesNumber of units

4,645

6,469

9,887 11,375

Introduction rate

10.9%

15.1%

22.6%

Brakes that reduce
collision damage

Number of units

2,323

5,619

8,924 11,237

Introduction rate

5.4%

13.1%

20.4%

25.3%

Wide-angle­rear-view cameras

Number of units

—

—

—

2,323

Introduction rate

—

—

—

5.2%

Automatic vehicles

25.6%

Number of units

22,582 23,742 27,687 29,370

Introduction rate

52.9%

55.3%

63.3%

Conventional verticalangle 70–100°

66.1%

Conventional horizontal angle 117°

170°
130°

For details related to safety and security, please see ourcorporate website.
https://www.yamato-hd.co.jp/english/csr/society/safety/

Creation of Solid Relationships with Business Partners
The Yamato Group operates its businesses with the support ofnumerous business partners and is promoting supply chain
management, recognizing that co-existence and co-prosperity
with business partners are vital for achieving sustainable growth.
In recent years, in addition to changes to the external environment such as decreases in Japan’s working population andrising energy prices, workstyle reform has become a serious
issue for drivers in the entire logistics industry following theapplication of a cap on overtime work to vehicle operation from
April 2024.
In light of these issues, the Yamato Group clarified its policy topromote fair, equitable, and honest business transactions withpartners through the Yamato Group Responsible Procurement
Policy in 2021 and the Declaration of Partnership Building(Yamato Transport) in March 2023. The Partnership Promotion
Office established at Yamato Transport is taking the lead on providing continuous employee training for proper business transactions, holding regular discussions with partners, and supportingtransportation partners based on the 2024 problem.
Furthermore, we are working to build partnerships by promoting
improvement activities through regular surveys of our partners
and will continue to contribute to realizing a sustainable society
by enhancing added value across the entire supply chain.

1

Provision of Monitoring Services that
Utilize IoT Lightbulbs and Our
Nationwide Network

Recently, the aging population and increasing burden of labor shortages for local governments and welfare-related businesses havebecome issues in monitoring older people who live alone and we
needed to create a new monitoring system. Kuroneko Monitoring
Service: HelloLight Visitation Plan is a monitoring service provided by
Yamato Transport that utilizes our nationwide network with close
relations to local communities and can be used by simply replacing
household lightbulbs with IoT lightbulbs. Following the launch of thisservice, we have promoted its introduction to bodies including local
governments and real-estate businesses not only for use by individual
customers with elderly family members but also to be utilized as gifts
sent in return for furusato nozei (hometown tax donations).

2

Initiatives that Support Shopping
Environments in Collaboration with
Satudora Holdings

In July 2023, Yamato Transport Co., Ltd. formed a basic partnershipagreement with Satudora Holdings Co., Ltd. to realize a sustainable
society in Hokkaido. There have been concerns about the serious
social issues of the falling birth rate and aging and shrinking population in Hokkaido and the fragility of logistics due to factors such as
heavy snow, particularly in some areas. Leveraging both of ourstrengths, we will contribute to providing a fulfilling shopping environment for local residents by working together to pick up parcels from
Satudora stores and deliver products bought at stores to customers’
homes. We will also utilize Yamato Transport’s transportation anddelivery network to deliver products to stores in an even more effective and stable manner and sell Satudora products within Yamato
Transport sales offices and mobile sales vehicles.

3

Kuroneko Monitoring Service: HelloLight Visitation Plan service flow

Mobile sales vehicles

Inside of vehicles

Collaboration with Local Governments to Resolve Furusato Nozei Issues

The number of furusato nozei donors has been increasing annually since its creation in 2008, with the nationwide donation
amount reaching a record ¥965.4 billion. Gifts sent in return to donors have been linked to spreading a region’s appeal and sustainably growing local industries. Meanwhile, challenges have also arisen, such as complication of operations for local governments, increase in outsourcing costs, and the burden of shipping operations for businesses providing these gifts. Yamato
Transport is working to resolve such issues through collaboration with local governments by utilizing the local community connections and diverse management resources we have built up to date.
Working together with Nakatsu, Oita, we are supporting the resolution of operational issues by helping local businesses participate in providing gifts, in addition to support for streamlining operations related to furusato nozei, such as management ofspecial sites, payments, and understanding the shipping capacity of gifts.
We also collaborated with local partner companies in Kamo, Shizuoka, and commenced initiatives to comprehensively support businesses that provide gifts, from gift promotion to shipping and delivery, with the aims of communicating the appeal of
local products and sustainably growing local industries.

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YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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