Part 4

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Ten-Year Summary and Business Highlights
Millions of Yen
2014/3

2015/3

2016/32017/3

2018/32020/3

2019/32021/32023/32022/3Thousands of
U.S. Dollars
2023/3(¥ billion)

RESULTS OF OPERATIONS:
Operating revenues

1,374,610

1,396,708

1,416,413

1,466,852

1,538,813

1,625,315

1,630,146

1,695,867

1,793,618

1,800,668$13,485,121

Operating costs

1,274,470

1,290,714

1,306,200

1,385,492

1,452,485

1,513,988

1,526,102

1,538,524

1,654,085

1,687,241

12,635,674

Selling, general andadministrative expenses

37,04337,046

41,672

46,47450,642

52,981

59,342

65,22062,33353,341

399,473

Operating profit

63,096

68,947

68,54034,88535,68558,34544,701

92,121

77,19960,085449,974

Profit before income taxes

65,882

69,157

68,07833,037

33,12352,25844,58191,75981,04056,815425,489

Income taxes

31,00331,55428,414

14,672

14,43526,30821,67834,82523,968

11,39385,327

Profit attributable to ownersof parent

34,77637,53339,42418,053

18,231

25,682

22,32456,70055,95645,898343,731

Yen    82.22    90.41    96.45    45.37    46.24    65.14   56.78

151.55151.03126.64$       0.95Diluted earnings

80.18

88.26

95.64

—

—

—

—

—

—

—

—

Cash dividends

24.00

25.00

28.00

27.00

27.00

28.00

41.00

46.00

46.00

46.00

0.34

1,316.12

1,368.66

1,349.56

1,367.51

1,395.74

1,435.15

1,441.20

1,553.45

1,611.34

1,684.87

12.62

2,224

2,772

2,247

2,332.5

2,668.5

2,859

1,697

3,035

2,293

2,269

—

Millions of Yen

Thousands of
U.S. Dollars

Net assets per share
Stock price (closing), end of year

FINANCIAL POSITION:
Working capital
Total shareholders’ equity   179,999   209,171   235,884   214,661   164,599   139,834

134,072

139,010

128,037

139,888$ 1,047,618

551,379

565,521537,821539,179

550,307565,841555,173576,367

590,542

610,380

4,571,115

1,032,134

1,082,531

1,089,436

1,114,672

1,114,870

1,123,659

1,100,739

1,089,991

1,086,854

1,107,587

8,294,669

Capital expenditures

79,53052,022

53,94548,99354,482

79,83855,03355,431

78,572

55,691

417,068

Depreciation and amortization

42,26546,05846,73946,114

46,42351,34655,08348,861

35,52441,557311,225

Net cash provided byoperating activities

80,075

92,62049,71573,32451,728118,093

74,433

123,92152,01689,953

673,660

Total assets

1,793.6

2022/3Retail Business Unit

4.9

4.8

2.4

2.3

3.6

2.7

5.4

4.3

3.3

Net margin (%)

2.5

2.7

2.8

1.2

1.2

1.6

1.4

3.3

3.1

2.5

Return on assets (ROA) (%)

3.5

3.5

3.6

1.6

1.6

2.3

2.0

5.2

5.1

4.2

Return on equity (ROE) (%)

6.4

6.7

7.1

3.4

3.3

4.6

4.0

10.0

9.6

7.6

Current ratio (%)

151.8

158.6

167.8

157.7

141.7

134.1

132.8

135.7

136.3

140.6

Shareholders’ equity ratio (%)

53.4

52.2

49.4

48.4

49.4

50.4

50.4

52.9

54.3

55.1

Asset turnover (Times)

1.4

1.3

1.3

1.3

1.4

1.5

1.5

1.5

1.6

1.6

Interest coverage ratio (Times)

154.7

174.9

126.6

83.1

135.0

215.5

108.4

125.8

100.3

68.5

Price earnings ratio (PER) (Times)

27.0

30.7

23.3

51.4

57.7

43.9

29.9

20.0

15.2

17.9

Price book-value ratio (PBR) (Times)

1.7

2.0

1.7

1.7

1.9

2.0

1.2

2.0

1.4

1.3

(27.9)

Other

1,800.6

2023/3

YoY +7.0

Analysis of Operating Profit(¥ billion)
2022/3

77.1+7.0

Revenue(15.3)

Subcontracting expenses+6.1

Personnel expenses

KEY RATIOS:
4.6

+33.8

Corporate Business Unit

Vehicle expenses

Operating profit margin (%)+1.1

U.S. Dollars

PER SHARE OF COMMON STOCK:
Basic earnings

Analysis of Operating Revenues

Other

(1.6)
+6.4
(19.7)

Eliminations

60.0

2023/3

YoY (17.1)

YoY Growth Rates of Parcel Delivery Amount and Unit Price（%）

15

NON-FINANCIAL DATA:
Number of employees

193,146

197,056

196,582

201,784

213,096

224,945

223,191

216,873

210,197

Full-time

87,27988,247

89,112

90,737

93,534

97,587

98,74496,82994,47392,727Part-time

105,867

108,809

107,470

111,047

119,562

127,538

126,201

126,362

122,400

117,470

Parcel delivery amount

1,665

1,622

1,698

1,800

1,758

1,668

1,627

1,803

1,890

1,926

(Millions of parcels)

574

595

586

574

615

702

726

704

700

703

Unit price (Yen)

—

—

32

67

78

135

172

293

384

413

Kuroneko DM-Bin handling volume

—

—

171

171

181

191

201

195

190

189

2,084

1,901

1,536

1,542

1,464

1,211

987

826

824

800

61

61

57

55

56

60

65

67

67

67

(Millions of units)
Unit price (Yen)

Foreign currency translation: U.S. dollar amounts have been translated, for convenience only, at the rate of ¥133.53 to U.S.$1.
Note: TA-Q-BIN includes TA-Q-BIN, TA-Q-BIN Compact, and EAZY.
On March 31, 2015, we ceased accepting items for Kuroneko Mail Service and from April 1 launched Kuroneko DM-Bin.

62

225,125

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

10
5
0
(5)
(10)

2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3
Parcel Delivery Amount Growth Rate
Parcel Unit Price Growth Rate

Delivery Amount:
YoY +1.9%
Unit Price:
YoY +0.4%

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

63

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Consolidated Balance Sheet
March 31, 2023

Thousands of
U.S. Dollars(Note 1)Millions of Yen

ASSETS

2023

2022

2023

CURRENT ASSETS:
Cash and cash equivalents (Notes 2.e and 16)

Millions of Yen

LIABILITIES AND EQUITY¥ 185,374¥ 182,645$ 1,388,254

Short-term bank loans (Notes 10 and 16)
Current portion of long-term debt (Notes 10 and 16)

Trade216,251

218,923

1,619,494

Installment (Note 6)

50,50948,055378,262

Allowance for doubtful accounts(1,474)(1,457)(11,039)

Inventories (Note 7)

2,580

2,216

19,324

Prepaid expenses and other current assets

31,40730,463

235,204

484,647

480,8453,629,499

Machinery and equipment
Leased assets (Note 15)
Construction in progress
Others
Total
Accumulated depreciation
Net property, plant and equipment

179,811381,219
196,141

179,651
376,844
197,105

1,346,601
2,854,930
1,468,888

133,69347,257
12,379135,149
39,6533,165

1,001,222
353,90992,706

5,124

2,471

38,370955,624

934,038

7,156,626(512,607)(504,159)(3,838,891)

443,017429,879

3,317,735

Other assets (Notes 2.k and 11)
Total investments and other assets
TOTAL

32,236

13,173
2,126
38,15022,31864,29233,942

17,882
1,872
38,58820,51954,198241,415

98,653
15,921
285,703
167,137
481,478¥

10,000¥15,000$74,890

5,415

4,850

40,554Trade160,766

165,346

1,203,971

Other

10,46318,44078,357

Income taxes payable

16,912

14,396

126,651

Accrued expenses

80,84981,905605,475

Deferred profit on installment sales (Notes 6 and 16)

4,798

4,714

35,929Other current liabilities (Notes 12 and 17)

55,55648,156

416,054344,759

352,8072,581,881

Long-term debt (Notes 10 and 22)

32,85926,038246,078

Liability for employees' retirement benefits (Notes 2.k and 11)

98,295

94,142

736,127

482

1,914

3,613

Other long-term liabilities (Note 12)

14,762

13,720110,551

Total long-term liabilities

146,398

135,814

1,096,369

127,235

127,235

952,856

LONG-TERM LIABILITIES:Deferred tax liabilities (Note 14)

COMMITMENTS LIABILITIES (Note 15)
EQUITY (Notes 13 and 22):
Common stock—authorized, 1,787,541,000 shares in 2023 and 2022;
issued, 379,824,892 shares in 2023 and 388,575,592 shares in 2022

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 8 and 16)
Investments in and advances to unconsolidated subsidiaries and affiliates,
net of valuation allowance of ¥482 million ($3,607 thousand) in 2023 and ¥439 million
in 2022 (Note 16)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 14)

2023

Notes and accounts payable:

Total current liabilities
PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
Vehicles

2022

2023

CURRENT LIABILITIES:

Notes and accounts receivable, and contract assets (Notes 16 and 17):

Total current assets

Thousands of
U.S. Dollars(Note 1)

Capital surplus

36,83936,813

275,886

Retained earnings

473,892

464,495

3,548,955

Treasury stock—at cost, 17,552,067 shares in 2023 and 22,084,421 shares in 2022

(39,836)(49,552)(298,327)

Unrealized gain on available-for-sale securities

9,280

11,49969,500Foreign currency translation adjustments

1,782

(513)

13,343Remeasurements of defined employees’ retirement benefit plans (Notes 2.k and 11)

1,189

566

8,902

610,381590,543

4,571,115

Accumulated other comprehensive income:

Total

7,628

9,130

57,128Non-controlling interests

6,049

7,691

45,304

179,923

176,131

1,347,435

Total equity

616,430

598,234

4,616,419¥1,107,587¥1,086,855$ 8,294,669¥1,107,587¥1,086,855$8,294,669

TOTAL

See notes to consolidated financial statements.

164

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report652

Part 4FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

Year Ended March 31, 2023

Year Ended March 31, 2023

Thousands of
U.S. Dollars(Note 1)Millions of Yen

OPERATING REVENUES (Note 17)

2023

2022

2023

¥1,800,668¥1,793,618$13,485,121

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2023

2022

¥45,422¥57,072$340,162

Unrealized loss on available-for-sale securities(2,223)(5,415)(16,644)

Foreign currency translation adjustments

2,292

794

17,168Remeasurements of defined employees' retirement benefit plans

677(5,283)

5,070

Share of other comprehensive income of entities accounted for using equity method

(54)

108

(407)

PROFIT

2023

OTHER COMPREHENSIVE INCOME (Note 18):

OPERATING COSTS AND EXPENSES:
Operating costs
Selling, general and administrative expenses
Total operating costs and expenses
Operating profit

1,687,242

1,654,085

12,635,674

53,341

62,333

399,473

1,740,583

1,716,418

13,035,147

60,085

77,200449,974

Total other comprehensive income (loss)
OTHER INCOME (EXPENSES):COMPREHENSIVE INCOME

Interest and dividend income

1,915

1,562

14,341

Interest expense

(905)

(786)

(6,777)

Loss on sales and disposal of property, plant and equipment—net

(404)

(361)

(3,027)

Owners of parent
Non-controlling interests

Loss on impairment of long-lived assets (Note 9)(1,995)(2,420)(14,938)

Gain on sales of investment securities—net (Note 8)

1,966

14,431

14,723

Loss on sales of shares of subsidiaries and affiliates—net

692(9,796)

5,187¥46,114¥47,276$345,349¥46,597¥47,210$348,968

(483)

66

(3,619)TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

See notes to consolidated financial statements.

(2,222)

Loss on valuation of investment securities (Note 8)(Loss) gain on investments in investment partnerships
Share of loss of entities accounted for using equity method

(2)

(49)

(17)

(257)

4,510

(1,927)(4,159)(243)(31,144)

(27)

(57)

(204)

Provision of allowance for doubtful accounts in unconsolidated subsidiaries and affiliates
Gain on liquidation of subsidiaries

1,210

Gain on transition of retirement benefit plan (Note 11)

1,420

Loss on revision of retirement benefit plan (Note 11)(14,999)

Dismantlement expenses(754)

Other—net

1,353

1,844

10,130

Other (expenses) income—net(3,269)3,840(24,485)

PROFIT BEFORE INCOME TAXES

56,816

81,040425,489

Current

23,01829,293

172,376

Deferred(11,624)(5,325)(87,049)

11,39423,96885,32745,422

57,072

340,162

(476)

1,116

(5,645)

INCOME TAXES (Note 14):

Total income taxes
PROFIT(LOSS) PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT ATTRIBUTABLE TO OWNERS OF PARENT¥

45,898¥55,956(3,569)$343,731
U.S. Dollars(Note 1)

Yen
2023

2022

¥126.64¥151.03

$0.95

46.00

46.00

0.34

2023

PER SHARE OF COMMON STOCK (Notes 2.q and 19):
Basic earnings
Cash dividends applicable to the year
See notes to consolidated financial statements.

366

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report674

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Year Ended March 31, 2023

Year Ended March 31, 2023

Thousands

BALANCE,APRIL 1, 2021

371,025

Thousands of
U.S. Dollars(Note 1)Millions of Yen
Accumulated Other Comprehensive Income

Outstanding
Number of
Shares ofCommon StockPart 4

Unrealized
Gain onAvailablefor-Sale
Securities

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock¥127,235¥36,813¥431,572¥(39,549)

Cumulative effects ofchanges in accounting
policies¥15,884

Foreign
Currency
Translation
Adjustments¥(1,317)

Total¥ 5,730¥576,368¥ 7,919¥584,287(3,343)(229)(3,572)573,025

7,690

580,715(3,343)RESTATED BALANCE

127,235

36,813428,229(39,549)

15,884(1,317)

Millions of Yen

Remeasurementsof Defined
Employees’
Retirement
Benefit Plans

5,730

2022

2023
Non-controlling
Interests

2023

OPERATING ACTIVITIES:

Total
EquityProfit before income taxes¥ 56,816¥ 81,040$ 425,489

Income taxes—paid(21,160)(46,738)(158,468)

Depreciation and amortization

41,62635,570311,737

404

361

3,027

Adjustments for:

Loss on sales and disposal of property, plant and equipment—net

Profit attributable toowners of parent

55,95655,95655,956

Loss on impairment of long-lived assets

1,995

2,420

14,938Cash dividends,¥53 per share(19,690)(19,690)(19,690)

Gain on sales of investment securities—net(1,966)(14,431)(14,723)

Purchase of treasury
stock(4,534)(10,003)(10,003)(10,003)

Disposal of treasurystock

366,491

127,235

36,813

464,495(49,552)(4,385)804(5,164)(8,745)

1(8,744)

11,499(513)

566

590,543

7,691

598,234

Profit attributable toowners of parent

45,89845,89845,898Cash dividends,¥46 per share(16,784)(16,784)(16,784)(10,001)(10,001)

Purchase of treasury
stock(4,218)(10,001)

Disposal of treasury
stock
Retirement oftreasury stock(19,717)

Change in equity
related to transaction
with non-controllingshareholders

19,717

26¥127,235¥36,839¥473,892¥(39,836)

26(2,219)

2,295

623

699

(1,642)(943)¥ 9,280¥ 1,782¥ 1,189¥610,381¥ 6,049¥616,430

49

17

243

31,144

Decrease (increase) in notes and accounts receivable

1,234(13,434)

9,244(Increase) decrease in inventories

(357)

144

(2,672)(5,259)11,537(39,387)
34,703

Changes in assets and liabilities, net of effects from previously consolidated
subsidiaries:(Decrease) increase in notes and accounts payable
Increase in liability for employees' retirement benefits

4,634

21,823

7,826(28,789)

58,611

Total adjustments

33,138(29,023)

248,171

Net cash provided by operating activities

89,95452,017

673,660

Other—net

Accumulated Other Comprehensive Income

CommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Unrealized
Gain onAvailablefor-Sale
Securities$952,856$275,693$3,478,579$(371,089)$ 86,114

Foreign
Currency
Translation
Adjustments$(3,844)

Remeasurementsof Defined
Employees’
Retirement
Benefit Plans$4,238

1,391

348

10,419(35,435)(40,779)(265,374)

Proceeds from sales of investment securities

2,787

18,63820,874Purchases of investment securities(1,752)(5,690)(13,120)

Decrease in investments in and advances to unconsolidated subsidiaries and affiliates

3,068

1,423

22,974Purchases of property, plant and equipment

Payment for sales of shares of subsidiaries resulting in change in scope of consolidation(Note 21)

Thousands of U.S. Dollars (Note 1)

BALANCE,MARCH 31, 2022

2

INVESTING ACTIVITIES:

26

362,273

2,222
4,159

Proceeds from sale of property, plant and equipment

Net change in theyear
BALANCE,MARCH 31, 2023

Loss on valuation of investment securities
Share of loss of entities accounted for using equity method

Net change in theyear
BALANCE,MARCH 31, 2022

Loss on sales of shares of subsidiaries and affiliates—net

Non-controlling
Interests

Total$4,422,547$ 57,597

Total
Equity$4,480,144(7,313)

Collection of loans

1,210

1,259

9,061

Payment of loans(1,375)(1,466)(10,302)

Other(19,314)(25,363)(144,640)(49,420)(58,943)(370,108)(10,690)(10,663)(80,052)

Net cash used in investing activities
FINANCING ACTIVITIES:Profit attributable toowners of parent

343,731

343,731

343,731

Cash dividends,$0.34 per share(125,693)(125,693)(125,693)

Repayments of long-term debt

(74,903)(74,903)

Dividends paid

(17,151)(19,741)(128,446)

Purchase of treasury stock—net(10,025)(10,057)(75,079)

Purchase of treasury
stock(74,903)

Disposal of treasury
stock

2

Retirement oftreasury stock(1)

Change in equity
related to transaction
with non-controllingshareholders(147,662)

194$952,856

See notes to consolidated financial statements.

$275,886

2

147,663

194

Net change in theyear
BALANCE,MARCH 31, 2023

2

$3,548,955$(298,327)

194(16,614)

17,187

4,664

5,237

(12,293)(7,056)$ 69,500$13,343$8,902$4,571,115$ 45,304$4,616,419

Repayments of short-term debt—net(14,000)

Proceeds from sales of shares of subsidiaries not resulting in change in scope of
consolidation

19

Purchase of shares of subsidiaries not resulting in change in scope of consolidation(Note 5)

(778)

Other
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

140(5,824)7

5

56(38,618)(54,456)(289,205)

706

701

5,286

2,622

(60,681)

19,633

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

180,604

241,285

1,352,534

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.e)¥183,226¥180,604$1,372,167

Newly recorded assets related to lease transactions¥ 11,386¥$

Newly recorded liabilities related to lease transactions

11,797

NON-CASH INVESTING AND FINANCING ACTIVITIES:—

85,267
88,344*The amounts of newly recorded assets and liabilities related to lease transactions for the fiscal year ended March 31, 2022, are omitted due to immateriality.
See notes to consolidated financial statements.

568

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report696

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
Year Ended March 31, 2023

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance withaccounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2022 consolidated
financial statements to conform them to the classifications and presentations used in 2023.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Yamato
Holdings Co., Ltd. (the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of¥133.53 to $1, the approximate rate of exchange at March 31, 2023. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

an investment in an equity instrument, where a foreign subsidiary elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.
c. Unification of Accounting Policies Applied to Foreign Affiliated Companies for the Equity Method—ASBJ
Statement No. 16, “Accounting Standard for Equity Method of Accounting for Investments,” requires adjustments to bemade to conform the affiliate’s accounting policies for similar transactions and events under similar circumstances to thoseof the parent company when the affiliate’s financial statements are used in applying the equity method, unless it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign affiliated companies in accordance with either International Financial Reporting Standards or generally accepted accounting principles in the UnitedStates of America tentatively may be used in applying the equity method if the following items are adjusted so that profit
is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive
income; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting; and (e) recording again or loss through profit or loss on the sale of an investment in an equity instrument for the difference between theacquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2023, include the accounts of the Company andits 29 (30 in 2022) significant subsidiaries (together, the “Group”).
Effective from the fiscal year ended March 31, 2023, Yamato Web Solutions Co., Ltd. has been excluded from thescope of consolidation due to absorption-type mergers in which Yamato System Development Co., Ltd. is the surviving
company.
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method.
The unconsolidated subsidiaries, whose combined assets, net sales, profit and retained earnings in the aggregate are
not significant to the consolidated financial statements, have not been consolidated with the Company.
There were 24 (22 in 2022) affiliates accounted for by the equity method.
Effective from the fiscal year ended March 31, 2023, Sweetmag Solutions (M) Sdn. Bhd. and one other company havebeen included in the scope of equity method due to GDEX BHD., an affiliate accounted for using equity method, newly
acquiring their shares.
Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated atcost, less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If the equity method of accounting had been applied to the investments in such companies, the effect on the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within the Group is also eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements—
Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical Solution
on Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements,” theaccounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events
under similar circumstances should in principle be unified for the preparation of the consolidated financial statements.
However, financial statements prepared by foreign subsidiaries in accordance with either International Financial Reporting

the fair value of an investment in an equity instrument, where a foreign affiliate elects to present in other comprehensive
income subsequent changes in the fair value of an investment in an equity instrument.
d. Revenue Recognition—Principal performance obligations in the principal businesses relating to revenues recognizedfrom contracts with customers in the Group and the normal timing of satisfaction of performance obligation (the normal
timing of recognizing revenues) are as follows:(1) Retail Business Unit
Retail Business Unit mainly provides small-parcel delivery services such as TA-Q-BIN. In this service, the Group provides aservice to collect and deliver cargoes at the customer’s request based on a contract with the customer, and revenue fromthis service is recognized in accordance with satisfaction of performance obligations measured by the progress of delivery,
because other companies are not required to perform the transportation process that has already been performed, even if
delivery to the designated delivery destination cannot be completed.
(2) Corporate Business Unit
In addition to the same transportation services as Retail Business Unit, Corporate Business Unit provides logistics support
services, such as cargo storage and logistics services for inbound and outbound shipments, in order to provide value tothe entire supply chain of its customers. The Group provides logistics support services, which include the collection, storage, packing, and delivery of cargo based on contracts with customers, and recognizes each contractually agreed-uponprocess as a performance obligation, and recognizes revenue for each process under contract in accordance with satisfaction of performance obligations measured by the progress of the work, as the customer receives the economic benefit of
the work as it progresses.
e. Cash Equivalents—Cash equivalents in the consolidated statement of cash flows are short-term investments that arereadily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statement of cash flows include time deposits, certificates of deposit, and mutual funds investing in bonds that
represent short-term investments, all of which mature or become due within three months of the date of acquisition.
The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash
equivalents in the accompanying consolidated statement of cash flows was as follows:Standards or generally accepted accounting principles in the United States of America tentatively may be used for the
consolidation process, except for the following items that should be adjusted in the consolidation process so that profit isaccounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduledTime deposits due beyond three months(c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant

Cash and cash equivalents presented in the consolidated statement of cash flows

through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition cost

2022

2023

Cash and cash equivalents presented in the consolidated balance sheet

amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income;and equipment and investment properties and incorporation of the cost model accounting; and (e) recording a gain or loss

Thousands of
U.S. Dollars

Millions of Yen¥185,374¥182,645

2023$1,388,254(2,148)(2,041)(16,087)¥183,226¥180,604$1,372,167

f. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.

and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in the fair value of

770

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report718

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
g. Investment Securities—Investment securities are classified and accounted for, depending on management’s intent, as

The asset retirement obligation is recognized as the sum of the discounted cash flows required for future asset retire-follows: (1) trading securities, which are held for the purpose of earning capital gains in near term, are reported at fairment and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonablevalue, and the related unrealized gains and losses are included in earnings; (2) held-to-maturity debt securities, for which

estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, thethere is a positive intent and ability to hold to maturity, are reported at amortized cost; and (3) available-for-sale securities,

liability should be recognized when a reasonable estimate of the asset retirement obligation can be made. Upon initialwhich are not classified as either of the aforementioned securities, are reported at fair value, with unrealized gains andrecognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying

losses, net of applicable taxes, reported in a separate component of equity. The Group had no trading securities at Marchamount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently allocated to31, 2023 and 2022.

expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted to its present

Equity securities with no market price and investments in capital are stated at cost determined by the moving-averagevalue each period. Any subsequent revisions to the timing or the amount of the original estimate of undiscounted cash
flows are reflected as reconciliation to the carrying amount of the liability and the capitalized amount of the related asset

method.
Investments in the limited partnership for investment partnerships and similar partnerships, which are deemed to be

retirement cost.

securities pursuant to Article 2, Paragraph 2 of the Financial Instruments and Exchange Act are stated at net amount ofequity interest in the partnership based on the most recent financial statements available according to the reporting datem. Leases—For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations instipulated in the partnership agreement.

the balance sheet.

For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to

For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized aslease receivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee areincome.

recognized as investments in leases.
h. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant andequipment excluding leased assets is computed by the straight-line method. Depreciation of leased assets is computed byn. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated

the straight-line method over the lease period with no residual value carried.

statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the

The range of useful lives is principally as follows:

expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets
and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences.

7–60 years

The Company and certain domestic consolidated subsidiaries will transition from the non-consolidated taxation system

Vehicles

2– 7 years

to the Japanese Group Relief System because they submitted the application for the Japanese Group Relief System during

Machinery and equipment

2–20 years

fiscal year ended March 31, 2023 and the approval was granted at April 1, 2023. In addition, the Company has adopted the

Buildings and structures

ASBJ PITF No. 42, “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” with
Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.

respect to the accounting treatment and disclosure related to tax effect accounting for national and local corporate income
taxes from the end of the fiscal year ended March 31, 2023.

i. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognizedo. Foreign Currency Transactions—All short and long-term monetary receivables and payables denominated in foreign

if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected tocurrencies are translated into Japanese yen at the exchange rates at the balance sheet date.

result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of thep. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are

discounted cash flows from the continued use and eventual disposition of the asset or the net selling price at disposition.

translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate. Differences arising from such translation are shown as “Foreign currency translation adjust-

j. Other Assets—Amortization of intangible assets is computed by the straight-line method.
Depreciation of leased assets is computed by the straight-line method over the lease period with no residual valuements” under accumulated other comprehensive income in a separate component of equity.
Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current

carried.

exchange rates as of the balance sheet date.

k. Retirement and Pension Plans—The Company and consolidated subsidiaries mainly have contributory trusted pension

q. Per Share Information—Basic earnings per share is computed by dividing profit attributable to common shareholders

plans and unfunded retirement benefit plans. In addition, defined contribution retirement plans were introduced along withby the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits.

these defined benefit retirement plans.
In calculating the retirement benefit obligations, the straight-line basis is used in determining the amount of the
expected retirement benefit obligations attributed to service performed up to the end of the current fiscal year.
Past service costs are recognized in profit or loss in full in the fiscal year in which it arises. Actuarial gains and losses
are amortized on a straight-line basis over a period within the average remaining service period of the eligible employees(mainly five years) on and after the fiscal year following the fiscal year in which it arises.
Actuarial gains and losses are recognized within equity on the consolidated balance sheet after adjusting for tax

Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into
common stock. Diluted earnings per share of common stock assumes full conversion of the outstanding convertible notes
and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest
expense, net of tax, and full exercise of outstanding warrants.
For the years ended March 31, 2023 and 2022, diluted earnings per share is not disclosed because the Company had
no dilutive securities.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicableeffects, and funded status is recognized as a liability or asset.

to the respective fiscal years, including dividends to be paid after the end of the year.

l. Asset Retirement Obligations—An asset retirement obligation is recorded for a legal obligation imposed either by law

r. Accounting Changes and Error Corrections—Under ASBJ Statement No. 24, “Accounting Standard for Accounting

or contract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset andPolicy Disclosures, Accounting Changes and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting

is associated with the retirement of such tangible fixed asset.

Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections,” accounting treatments are
required as follows:

972

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report73
10

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements(1) Changes in Accounting Policies—When a new accounting policy is applied following revision of an accounting stan-

4. ADDITIONAL INFORMATION

dard, the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provisions, in which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—When
the presentation of financial statements is changed, prior-period financial statements are reclassified in accordance with
the new presentation. (3) Changes in Accounting Estimates—A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only, and is accounted for prospectively if the change affects boththe period of the change and future periods. (4) Corrections of Prior-Period Errors—When an error in prior-period financial
statements is discovered, those statements are restated.

performance-based share remuneration plan “Board Benefit Trust (BBT)” for the directors (except for outside directors) and
executive officers who do not concurrently serve as directors of the Company (“Officers”). This plan purports to further
enhance the connection between Officers’ remuneration and performance and share value of the Company, and raise theirmotivation to make contributions to increase the Company’s long-term performance and corporate value by sharing not
only the benefits of a rise in share prices but also the risk of a decline in share prices with shareholders.
The Plan is a performance-based share remuneration plan in which the trust acquires the Company’s shares using
money contributed by the Company as the source of funds, and Officers are provided with the Company’s shares andcash equivalent to the market value of the Company’s shares (“Shares of the Company”) through the trust in accordancewith “Regulation for Benefit of Shares to Officers” established by the Company. As a general rule, Officers shall be entitled to receive Shares of the Company at the time of retirement.
The Company applies the same accounting method as stipulated in the ASBJ PITF No.30, “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employee etc. through Trusts.”
The book value (excluding incidental costs) of the Company’s shares held by the trust bank is accounted for as treasury
stock in the equity section of the Company’s consolidated balance sheet. The book value and number of treasury stock
held by the trust bank at March 31, 2023 and 2022, were both ¥1,376 million ($10,308 thousand) and 483,700 shares,
respectively.

subsidiaries, YAMATO ASIA PTE. LTD. and YAMATO INVESTMENT (HONG KONG) LIMITED.
Reasons for dissolution and liquidation
Company judged that reorganizing the current management structure based on previous overseas governance by abolishing intermediate holding companies was necessary. The purpose of liquidation is to reconstruct an appropriate governanceframework that aligns with business scale, characteristics, country and region-specific factors, and the growth stage ofoverseas business.
Name, business and ownership of subsidiaries
Name:

YAMATO ASIA PTE. LTD.

Business:

Management of regional business in Southeast Asia, business development and market research

Ownership:

100% owned by the Company

Name:

YAMATO INVESTMENT (HONG KONG) LIMITED

Business:

Management of regional business in East Asia, business development and market research

Ownership:

100% owned by the Company

Schedule of dissolution and liquidation
Board of Directors Resolution (the Company):

February 17, 2023

Extraordinary Meeting of Shareholders (companies involved): August 2023 (planned)
Conclusion of liquidation:

3. SIGNIFICANT ACCOUNTING ESTIMATE

October 2023 (planned)

Financial situation of the subsidiaries
YAMATO ASIA PTE. LTD.

Impairment of Long-Lived Assets
Amount recorded in the consolidated financial statements for the current fiscal year based on accounting estimates that
may have a material impact on the consolidated financial statements for the following fiscal year are as follows:
Thousands of
U.S. Dollars

Millions of Yen
2023

Intangible assets

At the meeting held on February 17, 2023, the Board of Directors of the Company resolved to liquidate its consolidated

The Company decided to liquidate YAMATO ASIA PTE. LTD. and YAMATO INVESTMENT (HONG KONG) LIMITED. The

s. Performance-Based Share Remuneration Plan “Board Benefit Trust (BBT)”—The Company has introduced aProperty, plant and equipment

Dissolution and Liquidation of Subsidiaries

2022

2023

Net assets:¥3,676 million ($27,527 thousand)Total assets:¥3,768 million ($28,216 thousand)Total liabilities: ¥92 million ($689 thousand)
YAMATO INVESTMENT (HONG KONG) LIMITED¥443,017¥429,879$3,317,735

Net assets:¥6,172 million ($46,223 thousand)

43,75945,646

327,712

Total assets:¥6,176 million ($46,252 thousand)In cases where there are indications that an asset may be impaired, an impairment test is performed based on the
future cash flows generated by the asset. The cash-generating unit, which is used to determine whether it is necessary for
an asset to recognize impairment loss, is the smallest unit in an asset group generating cash inflows generally independent of cash inflows from other assets or asset groups. The criteria of the asset groups are the management accountingclassification and the unit used for investment decision making. In Yamato Transport Co., Ltd., the four businesses of
Retail, Corporate, Global SCM, and EC were grouped as the smallest cash flow generating units, and assets associatedwith the Transportation division and the Head Office division were classified as common assets. Because the Retail
Business Unit holds most of the above property, plant and equipment and intangible assets, the undiscounted future cash

Total liabilities: ¥4 million ($29 thousand)Effect on profit or loss due to the dissolution and liquidation
The effect caused by expenses arising from the dissolution and liquidation of the subsidiaries on profit or loss isimmaterial.
Significant effect on operating activities due to the dissolution and liquidation
The effect caused by the dissolution and liquidation of the subsidiaries on operating activities is immaterial.

flows used in determining recognition of impairment losses on those assets of the business are based on future management plans that include significant assumptions, such as the unit price and the transaction volume of TA-Q-BIN. Theseassumptions may have a material impact on the consolidated financial statements for the following fiscal year and thereafter if it becomes necessary for them to be reconsidered due to uncertain economic conditions and the operating conditions of the Group.

74
11

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report75
12

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
5. BUSINESS COMBINATIONS

1. Outline of Business Combination
Name and business of the company involved in the business combination

Transactions under Common Control
a. Absorption-type Merger among Consolidated Subsidiaries
At the meeting held on January 20, 2022, the Board of Directors of the Company resolved to conclude contracts involving
the absorption-type merger between Yamato System Development Co., Ltd. and Yamato Web Solutions Co., Ltd., which
are consolidated subsidiaries of the Company, and they implemented the absorption-type merger on April 1, 2022.
1. Outline of Business Combination(1) Absorption-type merger in which Yamato System Development Co., Ltd. is the surviving company
Name and business of the companies involved in the business combination
Surviving company

Name:

Yamato System Development Co., Ltd. (“YSD”)

Business:

Research, development, information provision and consulting services for computer-based systems
Operation and management of information processing services and computer systems and related
services

Dissolving company

Name:

Yamato Web Solutions Co., Ltd. (“YWS”)

Business:

Worker dispatch services
Fee-based employment placement services
Research, development, information provision and consulting services for computer-based systems

Date of the business combination

April 1, 2022 (effective date)
Legal form of the business combination

Name:

Yamato Dialogue & Media Co., Ltd.

Business:

Various businesses related to direct marketing

Date of the business combination

September 26, 2022 (effective date)
Legal form of the business combination

Acquisition of shares from non-controlling shareholders
Name of the company after the business combination

The name did not change.
Outline and purpose of business combination

The purpose of the business combination is to enhance growth potential of the business by increasing the efficiency ofthe managing process through making Yamato Dialogue & Media Co., Ltd. a wholly-owned subsidiary.

2. Outline of Accounting Treatment
The transaction was accounted for as a transaction with non-controlling shareholder of transactions under common control
in accordance with ASBJ Statement No. 21, “Accounting Standard for Business Combinations,” and ASBJ Guidance No. 10,“Guidance on Accounting Standards for Business Combinations and Business Divestitures.”3. Matters related to Additional Acquisition of Shares of Subsidiary
Acquisition cost and the breakdown are as follows:
Acquisition consideration:

Cash and cash equivalents¥613 million ($4,587 thousand)Total acquisition cost:¥613 million ($4,587 thousand)Absorption-type merger with YWS as the dissolving company and YSD as the surviving company
Name of the company after the business combination

The name did not change.

(2) Outline and purpose of business combination
The purpose of the business combination is to improve growth potential of the business by further utilizing businessresources and optimizing the professional personnel in the IT department through the absorption-type merger with YSD
and YWS. YSD is responsible for the IT functions of the Yamato Group, and YWS provides design, construction, operationof website, and staffing services.
2. Outline of Accounting Treatment
The transaction was accounted under common control in accordance with ASBJ Statement No. 21, “Accounting Standard
for Business Combinations,” and ASBJ Guidance No. 10, “Guidance on Accounting Standards for Business Combinations
and Business Divestitures.”

4. Change in Equity related to Transaction with Non-controlling Shareholders
Main reason for the change in capital surplus

Additional acquisition of shares of subsidiary
Increase in capital surplus by transaction with non-controlling shareholders¥23 million ($170 thousand)

6. INSTALLMENT RECEIVABLES
Sales recorded on the installment basis were 0.2% of operating revenues in both 2023 and 2022.
Annual maturities of installment receivables at March 31, 2023, and related amortization of deferred profit on installment sales are as follows:
Millions of Yen
Year Ending March 31

b. Additional Acquisition of Shares of Subsidiary
On September 26, 2022, the Company made Yamato Dialogue & Media Co., Ltd., which is a consolidated subsidiary of theCompany, a wholly-owned subsidiary through additional acquisition of shares of Yamato Dialogue & Media Co., Ltd. heldby DHL eCommerce Japan K.K.

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

Deferred Profit on
Installment Sales

Receivables

2024¥22,182¥2,020$166,121$15,1252025

10,876

1,150

81,451

8,616

2026

6,685

598

50,066

4,479

2027

3,838

324

28,742

2,424

2028

2,147

191

16,0801,427

2029 and thereafter

4,781

515

35,802

3,858¥50,509¥4,798$378,262$35,929

Total

76
13

Receivables

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report77
14

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
7.

INVENTORIES

Thousands of U.S. Dollars
March 31, 2023

Inventories at March 31, 2023 and 2022, consisted of the following:

Proceeds

Realized Gains

Realized Losses$14,757$34$14,757$34

Available-for-sale:
Thousands of
U.S. Dollars

Millions of Yen

Merchandise

2023

2022

2023

¥ 169

¥ 187

$ 1,265

Work in process

322

167

2,412

Raw materials and supplies

2,089

1,862

15,647

Total¥2,580¥2,216$19,324

Equity securities$20,870

Other
Total

4
$20,874

Loss on valuation of available-for-sale securities for the years ended March 31, 2023 and 2022, were ¥2 million ($17thousand) and ¥49 million, respectively.

9. LONG-LIVED ASSETS
8. INVESTMENT SECURITIESThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2023 and 2022. Upon review,
due to no future use, continuous operating losses of those units or significant declines in market prices, the Group recog-

Investment securities as of March 31, 2023 and 2022, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2023

2022

¥21,001¥21,562$157,274

Non-marketable equity securities

3,759

3,813

28,154

Other

7,476

8,567

55,987¥32,236¥33,942$241,415

2023

Total

Payment Business Unit of Yamato Credit Finance Co., Ltd. and 4 other asset groups for the year ended March 31, 2023,
and ¥2,420 million as other expense for the asset groups of the head office and the Tokyo Regional Branch of Yamato

Non-current:
Marketable equity securities

nized an impairment loss of ¥1,995 million ($14,938 thousand) as other expense for the asset groups of Credit Card

Information regarding each category of the securities classified as available-for-sale at March 31, 2023 and 2022, is as follows:
Millions of Yen

Home Convenience Co., Ltd. and 6 other asset groups for the year ended March 31, 2022. The carrying amounts of therelevant asset groups were written down to their recoverable amounts. In the case where the net selling prices were used
as recoverable amounts, idle assets were evaluated at zero, and the relevant asset groups other than idle assets were
evaluated mainly based on Real Estate Appraisal Standards, assessed value of fixed assets, and posted land prices. In thecase where the recoverable amounts were measured at their value in use, the discount rates used for computation ofpresent value of future cash flows for the years ended March 31, 2023 and 2022, were mainly 5.29% and 5.23%,
respectively.

2023
Cost

Unrealized Gains

Unrealized Losses¥10,448¥254

Fair Value

10. BANK LOANS AND LONG-TERM DEBT

Securities classified as:
Available-for-sale: Equity securities¥10,807¥21,001

interest rates applicable to the bank loans as of March 31, 2023 and 2022, were approximately 0.047% and 0.055%,

Millions of Yen

respectively.

2022
Cost

Short-term bank loans at March 31, 2023 and 2022, consisted of notes to banks and bank overdrafts. The weighted-average

Unrealized Gains

Unrealized Losses¥11,572¥653

Long-term debt at March 31, 2023 and 2022, consisted of the following:

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥10,643

Lease obligations

Thousands of U.S. Dollars
2023
Cost

Unrealized Gains

Unrealized Losses

Total

Fair ValueLess current portion

Securities classified as:
Available-for-sale: Equity securities$80,933$78,242$1,901$157,274

Information for available-for-sale securities, which were sold during the years ended March 31, 2023 and 2022, is as follows:
Millions of Yen
March 31, 2023

Proceeds

Realized Gains

Realized Losses

Available-for-sale:
Equity securities¥2,787¥1,970

¥4

Other
Total

¥2,787¥1,970¥4

Millions of Yen
March 31, 2022

Proceeds

Realized Gains

Realized Losses¥18,638¥14,431¥—¥18,638¥14,431¥—

Available-for-sale:
Equity securities

Thousands of
U.S. Dollars

Millions of Yen¥21,562

Total

2023

2022

¥38,274¥30,888$286,632

38,27430,888286,632(5,415)(4,850)(40,554)¥32,859¥26,038$246,078

Millions of Yen

Thousands of
U.S. Dollars

2023

Annual maturities of long-term debt at March 31, 2023, are as follows:Year Ending March 312024¥ 5,415$ 40,554

2025

4,983

37,316

2026

3,731

27,937

2027

2,885

21,608

2028

2,083

15,6012029 and thereafter

19,177

143,616

Total¥38,274$286,632

Other
Total

78
15

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report79
16

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
11. RETIREMENT AND PENSION PLANS

The amount of the liability and asset for employees’ retirement benefits that are offset individually by the Company
and subsidiaries are combined.

The Group has defined benefit retirement plans and defined contribution retirement plans for employees.
The defined benefit retirement plans provide, under most circumstances, that employees terminating their employment are entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service,

The components of net periodic benefit costs for the years ended March 31, 2023 and 2022, were as follows:

and certain other factors. Such retirement benefits are made in the form of a lump-sum severance payment from theThousands of
U.S. Dollars

Millions of Yen

Company or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger

2023

2022

¥14,233¥14,3172023

payments if the termination is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retire-

Service cost

ment at certain specific ages exceeding the standard retirement age.

Interest cost

151

169

1,128

Expected return on plan assets

(574)

(855)

(4,295)

Recognized actuarial loss (gain)

493

(488)

3,689

(1) Defined Benefit Retirement Plans
The changes in defined benefit obligation for the years ended March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2022

2023

Balance at beginning of year

Past service cost2023

¥151,477¥183,859$1,134,407

14,999Gain on transition to defined contribution pension plans(1,420)

OthersNet periodic benefit costs$106,592

52

(76)

391

¥14,355¥26,646$107,505

Service cost

14,233

14,317

106,592

Interest cost

151

169

1,128

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined benefit

Actuarial loss arising during the year

169

1,849

1,266

retirement plans for the years ended March 31, 2023 and 2022, were as follows:(10,721)(9,901)(80,289)

Retirement benefits paid
Past service cost arising during the year

14,999Decrease due to transition to defined contribution pension plans(52,271)

Decrease due to change in scope of consolidation(1,544)

Balance at end of year

¥155,309¥151,477

2023

¥981

¥(7,510)$7,349

Total

¥981

¥(7,510)$1,163,104$7,349Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect ofThousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

2022

Actuarial gain (loss)

2023

The changes in plan assets for the years ended March 31, 2023 and 2022, were as follows:

2022

2023

Thousands of
U.S. Dollars

Millions of Yen

defined benefit retirement plans as of March 31, 2023 and 2022, were as follows:

2023

Thousands of
U.S. Dollars

Millions of Yen¥57,351¥112,181$429,500

Expected return on plan assets

574

855

4,295

Unrecognized actuarial gain

¥1,387¥406$10,390

Actuarial gain arising during the year

657

1,334

4,926

Total

¥1,387¥406$10,390

Contributions from the employer
Retirement benefits paid

2

3,827

14

(1,550)(2,034)(11,608)

Decrease due to transition to defined contribution pension plans(57,158)

Decrease due to change in scope of consolidation(1,654)

Balance at end of year

¥57,034

2022

2023

Plan assets as of March 31, 2023 and 2022, consisted of the following:
2022

2023

¥ 57,351$427,127

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obliga-

2023

General accounts

58%

57%

Debt investments

22

22

Others

20

21

Total

100%

100%

tion and plan assets as of March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2022

2023

Defined benefit obligation of funded plan
Plan assets

2023¥ 11,802¥ 12,935(57,034)(57,351)(427,127)(45,232)(44,416)(338,742)

88,385

Defined benefit obligation of unfunded plan

143,507

138,542

1,074,719

Net liability arising from defined benefit obligation¥ 98,275¥ 94,126$ 735,977
Thousands of
U.S. Dollars

Millions of Yen
2022

2023

Liability for employees' retirement benefits
Asset for employees' retirement benefits
Net liability arising from defined benefit obligation

80
17

$

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

2023¥98,295¥94,142$736,127

(20)

(16)

(150)

¥98,275¥94,126$735,977

Assumptions used for the years ended March 31, 2023 and 2022, were set forth as follows:
2022

2023

Discount rate

0.1%

0.1%

Expected rate of return on plan assets

1.0%

1.0%

The expected rate of return on plan assets is determined on the basis of the distribution of plan assets, past performance of respective assets that make up investments of plan assets, and market trends.

(2) Defined Contribution Retirement Plans
The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2023
and 2022, were ¥10,796 million ($80,849 thousand) and ¥6,886 million, respectively.

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report81
18

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
12. ASSET RETIREMENT OBLIGATIONS

14. INCOME TAXESThe changes in asset retirement obligations for the years ended March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year

The Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggre-

2023

2022

2023

¥9,928¥9,646$74,347

Additional provisions associated with the acquisition of property, plant andequipment

23

456

168

Reconciliation associated with passage of time

104

105

779

Reconciliation associated with changes in accounting estimates
Reduction associated with settlement of asset retirement obligations
OthersBalance at end of year

(7)

(138)

(51)

(449)

(138)

(3,362)

10

(3)

77

¥9,609¥9,928$71,958

Changes in accounting estimates were recorded as it became evident that the estimate of the discounted cash flows
required for future asset retirement at the beginning of the year would change. A reconciliation has been prepared for thechange, which resulted in a decrease of the asset retirement obligation for the years ended March 31, 2023 and 2022, by¥7 million ($51 thousand) and ¥138 million, respectively.

13. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters are summarized below:

a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders’ meeting. For companies that meet certain criteria such as (1) having a Board of
Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service of thedirectors being prescribed as one year rather than the normal two-year term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. The Company meets all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to acertain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available fordividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.

gate, resulted in a normal effective statutory tax rate of 30.6% for the years ended March 31, 2023 and 2022.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets
and liabilities at March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2022

2023

2023

Deferred tax assets:
Accrued expenses¥ 11,197¥ 11,871$ 83,856

Legal welfare expense

1,881

1,970

14,086Enterprise tax

1,906

1,958

14,277

526

510

3,938

Tax loss carryforwards

4,257

3,656

31,884

Liability for employees' retirement benefits

30,77729,229230,486

Loss on valuation of land

20,485

20,485

153,408

Loss on impairment of long-lived assets

4,242

3,856

31,771

Loss on valuation of investment securities

920

1,062

Investments in subsidiaries and affiliates

10,628

Unrealized profit

3,944

3,812

394

398

2,947

9,428

8,679

70,604

100,585

87,486753,274(4,257)(3,651)(31,884)

Less valuation allowance for temporary differences(24,585)(23,915)(184,109)

Total valuation allowance(28,842)(27,566)(215,993)¥ 71,743¥ 59,920$ 537,281¥ (2,703)¥ (2,756)$ (20,248)(5,230)(4,880)(39,168)

Deferred tax liabilities¥ (7,933)¥ (7,636)$ (59,416)

Deferred tax assets—net¥ 63,810¥ 52,284$ 477,865

Allowance for doubtful accounts

Loss on valuation of telephone subscription rights
Other
Total tax loss carryforwards and temporary differences
Less valuation allowance for tax loss carryforwards

Deferred tax assets

6,890
79,58929,538Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Other

The expiration of tax loss carryforwards, the related valuation allowances and the resulting net deferred tax assets as ofMarch 31, 2023, are as follows:
Millions of Yen

b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal
reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional
paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts within equity undercertain conditions upon resolution of the shareholders.
c. Treasury Stock
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution
to the shareholders, which is determined by a specific formula. The Companies Act also provides that companies canpurchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented asa separate component of equity.

82
19

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

Year Ending March 31

2024

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

¥

¥

24

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

(24)

2025

50

(50)

2026

36

(36)

2027

3

(3)

¥—

2028
2029 and thereafter

4,144(4,144)Total¥4,257¥(4,257)¥—

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report83
20

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
Short-term bank loans and long-term bank loans are mainly related to a financial business. Bank loans are mainly vari-

Thousands of U.S. Dollars

Year Ending March 31

2024

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards$

Less Valuation
Allowances for
Tax Loss
Carryforwards

180$

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

(180)

2025

378

(378)

2026

269

(269)

2027

19

(19)

$—

31,038(31,038)

Total$31,884$(31,884)

Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as
through fund settlement, bookkeeping, monitoring of the balances outstanding, and managing cash flows.

(3) Fair Value of Financial Instruments
Since variable factors are incorporated in the calculation of the fair value of financial instruments, the fair value may change
due to the adoption of different assumptions, etc.
Fair value of financial instruments at March 31, 2023 and 2022, were as follows:

2028
2029 and thereafter

able interest rate loans.

$—

Millions of Yen
March 31, 2023

Carrying Amount

Fair Value

Difference

Assets:Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated statement of income for the year ended March 31, 2023, was as follows:
30.6%

Per capita levy of local taxes

4.7

Difference of tax rates for foreign subsidiaries(0.1)

Valuation allowance(17.0)

Share of profit or loss of entities accounted for using equity method

2.2

Other—net(0.3)

Actual effective tax rate

20.1%

Allowance for doubtful accounts¥216,251(261)
215,990

2023

Normal effective statutory tax rate

Trade notes and accounts receivable, and contract assets

Installment sales receivable
Allowance for doubtful accounts
Deferred profit on installment sales¥216,028¥38

50,509(942)(4,798)44,76949,136

Available-for-sale securities

21,001

21,001

Shares of affiliates

4,309

5,805

10,00010,000

4,367
1,496

Liabilities:

Reconciliation between the normal effective statutory tax rates and the actual effective tax rates for the year ended

Short-term loans

March 31, 2022, was omitted since the difference between both rates was less than 5% of the normal effective statutory

Millions of Yen
March 31, 2022

tax rates.

Carrying Amount

Fair Value

Difference

Assets:Trade notes and accounts receivable, and contract assets

15. LEASES

Allowance for doubtful accounts(158)
218,765

The Group leases certain buildings, cargo aircrafts, computer equipment and other assets as the lessee.

Installment sales receivable

Future rental payments under non-cancelable operating leases at March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen¥218,923

Allowance for doubtful accounts
Deferred profit on installment sales¥218,777

12(936)(4,714)

2023

2022

Due within one year

42,405

46,956¥ 9,785¥ 7,496$ 73,275

Available-for-sale securities

Due after one year

21,562

21,562

44,46022,608332,961

Shares of affiliates

Total

6,668

10,127¥54,245¥30,104$406,236
15,00015,0002023¥

48,055

4,551
3,459

Liabilities:
Short-term loans

16. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt including bank loans and bonds, in order to expand its business based on its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets.
Derivatives are not used for speculative purposes but to manage exposure to interest fluctuation risk. Certain consolidated
subsidiaries conduct installment sales operations.
(2) Nature and Extent of Risks Arising from Financial Instruments and the Risk Management for Financial
Instruments
Receivables such as notes and accounts receivable and installment sales receivable are exposed to customer credit risk.
Therefore, the Group minimizes customers’ credit risk by monitoring collections and accrued receivables at due dates.
Investment securities are mainly equity securities of the companies with which the Group has business relationships
or capital alliances. Such securities are exposed to the risk of market price fluctuations.
Most payment terms of payables such as notes and accounts payable are less than one year.

84
21

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
FinancialThousands of U.S. Dollars
March 31, 2023

Carrying Amount

Fair Value

Difference

Assets:Trade notes and accounts receivable, and contract assets
Allowance for doubtful accounts$1,619,494(1,954)
1,617,540

Installment sales receivable$1,617,824$

284

378,262

Allowance for doubtful accounts(7,060)

Deferred profit on installment sales(35,929)
335,273

367,974

Available-for-sale securities

157,274

157,274

Shares of affiliates

32,271

43,47674,89074,89032,701
11,205

Liabilities:
Short-term loans

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report85
22

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
Cash and cash equivalents are omitted because they are settled in a short period of time and their carrying amounts

Financial instruments recorded on the consolidated balance sheet at fair value

approximate fair value.

Millions of Yen
Fair Value

Trade notes and accounts receivable, and contract assets are presented after deducting allowances for doubtful

March 31, 2023

accounts set up for trade notes and accounts receivable, and contract assets not settled in a short period of time.

Level 1

Level 2

Level 3

Total

Available-for-sale securities:

Installment sales receivable is presented after deducting the relevant allowance for doubtful accounts and deferred

Equity securities

profit on installment sales.

Total assets

Equity securities with no market price and investments in capital are not included in available-for-sale securities or¥21,001¥—¥—¥21,001¥21,001¥—¥—¥21,001

shares of affiliates. The amount of these financial instruments recorded as investment securities on the consolidated balance sheet at March 31, 2023 and 2022, were ¥3,840 million ($28,759 thousand) and ¥3,894 million, respectively, and theamount of these financial instruments recorded as investments in unconsolidated subsidiaries and affiliates on the consolidated balance sheet at March 31, 2023 and 2022, were ¥6,213 million ($46,532 thousand) and ¥7,362 million, respectively.
Investments in partnerships and other similar entities that are recorded on the consolidated balance sheet at net

Millions of Yen
Fair Value
March 31, 2022

Level 2

Level 3

Total

Available-for-sale securities:
Equity securities
Total assets

amount of equity interest are not included. The amount of these investments recorded as investment securities on theLevel 1

¥21,562¥—¥—¥21,562¥21,562¥—¥—¥21,562

Thousands of U.S. Dollars

consolidated balance sheet at March 31, 2023 and 2022, were ¥7,395 million ($55,382 thousand) and ¥8,486 million,

Fair Value

respectively.

March 31, 2023

Trade notes and accounts payable are omitted because most of them are due within one year and their carrying

Level 1

Level 2

Level 3

Total

Available-for-sale securities:

amounts approximate fair value.

Equity securities
Total assets$157,274$—$—$157,274$157,274$—$—$157,274¥—¥216,028(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen
March 31, 2023

Due in One Yearor Less

Due after One Yearthrough Five Years

Financial instruments other than those recorded on the consolidated balance sheet at fair value

Due after
Five Years¥185,374

Trade notes and accounts receivable, and contract assets

216,21338

Installment sales receivable

22,182

23,546

4,781

Trade notes and accounts receivable, and contract assets¥423,769¥23,584¥4,781

Installment sales receivable

Total

¥

—

¥

—

March 31, 2022

Due in One Yearor Less

Due after One Yearthrough Five Years¥182,645
218,883

40

Installment sales receivable

22,061

22,7293,265¥423,589¥22,769¥3,265

Total

¥

—

Thousands of U.S. Dollars
March 31, 2023

Due in One Yearor Less

Cash and cash equivalents$1,388,254

Trade notes and accounts receivable, and contract assets

1,619,214

280

166,121

176,339

35,802$3,173,589$176,619$35,802

Installment sales receivable
Total

Due after One Yearthrough Five Years$—

Due after
Five Years$—(5) Matters Concerning the Breakdown of the Fair Value of Financial Instruments by Level and Other Items
The fair value of financial instruments is classified into the following three levels based on the observability and materialityof the inputs used to calculate fair value.
Level 1 fair value: Fair value calculated by the market price of the asset or liability formed in the active market amongobservable inputs
Level 2 fair value: Fair value calculated by observable inputs excluding inputs of Level 1
Level 3 fair value: Fair value calculated by unobservable inputs
When multiple inputs that have a significant influence on the fair value calculation are used, the fair value is classified
into the lowest priority level in the fair value calculation among the levels to which those inputs belong.

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial¥

Level 2—

Level 3

¥216,028

Total

49,136Equity securities

Due after
Five Years

Trade notes and accounts receivable, and contract assets—

Level 149,136

Shares of affiliates:

Cash and cash equivalents¥

Fair Value
March 31, 2023

Millions of Yen

86
23

Millions of Yen

Cash and cash equivalents

5,805

5,805

Total assets¥5,805¥265,164¥—¥270,969

Short-term loans¥—¥ 10,000¥—¥ 10,000

Total liabilities¥—¥ 10,000¥—¥ 10,000¥—¥218,777

Millions of Yen
Fair Value
March 31, 2022

Level 1

Trade notes and accounts receivable, and contract assets¥

Level 2—

Level 3¥218,777

Installment sales receivable

Total

46,956

46,956

Shares of affiliates:
Equity securities

10,127

10,127

Total assets¥10,127¥265,733¥—¥275,860

Short-term loans¥—¥ 15,000¥—¥ 15,000

Total liabilities¥—¥ 15,000¥—¥ 15,000Thousands of U.S. Dollars
Fair Value
March 31, 2023

Level 1

Trade notes and accounts receivable, and contract assets$

Level 2—

Level 3

$1,617,824

Installment sales receivable

Total

$—

$1,617,824

367,974

367,974

Shares of affiliates:
Equity securities
Total assets

43,476$43,476

43,476$1,985,798$—$2,029,274

Short-term loans

$

—

$

74,890$—$74,890Total liabilities

$

—

$

74,890$—$74,890

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report87
24

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
Available-for-sale securities and shares of affiliates

Thousands of U.S. Dollars

Marketable equity securities are valued using the market prices. Since marketable equity securities are traded in active2023

markets, their fair value is classified as Level 1 fair value.
Transportation income

Corporate
Business Unit

$ 8,921,327$4,622,346

Other

Total

$ 184,354 $13,728,027

Trade notes and accounts receivable, and contract assets

Logistical support income

25,104

1,943,574

The fair value of these assets is determined using the discounted present value method based on the amount of the

Others193,653

249,814

1,136,458

1,579,925

receivable, the period to maturity and the interest rate that takes into account credit risk for each receivable classified by

Revenues from contracts with customers

9,140,084

6,815,734

1,320,812

17,276,630

certain time periods and is classified as Level 2 fair value.

Other revenues

25,73725,7379,140,084

6,815,734

1,346,549

17,302,367

Total
Installment sales receivable

Internal segment revenues or transfers

The fair value of installment sales receivable is determined using the discounted present value method based on the

Operating revenues by reportable segments(19,200)(356,450)(58,207)(433,857)

6,459,284

1,288,342

16,868,510(838,699)(3,383,389)

Intersegment revenues or transfers(2,421,460)(123,230)

classified by certain time periods and is classified as Level 2 fair value.

Operating revenues from external customers$ 6,699,424$6,336,054

The fair value of short-term loans is determined using the discounted present value method based on the total amount ofprincipal and interest and the interest rate that takes into account the remaining term of the debt and credit risk and isclassified as Level 2 fair value.

(1) Information about Disaggregated Revenues from Contracts with Customers
Millions of Yen
2023

Transportation income

Corporate
Business Unit

Other

¥1,191,265¥617,221

Logistical support income

3,352

259,526

Others25,8581,220,475

Revenues from contracts with customers
Total
Internal segment revenues or transfers

1,220,475

Total¥ 24,617¥1,833,103

33,358

151,751

210,967

910,105

176,368

2,306,948

3,437

3,437

179,805

2,310,385

262,878

Other revenues
910,105(2,563)(47,597)(7,773)(57,933)

Operating revenues by reportable segments

1,217,912

862,508

172,0322,252,452

Intersegment revenues or transfers(323,338)(16,455)(111,991)(451,784)

Operating revenues from external customers¥ 894,574¥846,053¥ 60,041¥1,800,668

Millions of Yen
2022
RetailBusiness Unit

Transportation income

Corporate
Business Unit

¥1,144,359¥598,306

Logistical support income

3,587

249,638

Others28,18433,023

1,176,130

880,967

Revenues from contracts with customers
Other revenues
Total

Other

¥ 50,968

Balance of receivables, contract assets and contract liabilities from contracts with customers
Thousands of
U.S. Dollars

Millions of Yen
2022

2023

2023

Receivables from contracts with customers, beginning of fiscal year

¥188,005¥178,323$1,407,959

Receivables from contracts with customers, end of fiscal year

185,549

188,005

1,389,571

Contract assets, beginning of fiscal year

4,689

4,146

35,115Contract assets, end of fiscal year

4,794

4,689

35,899Contract liabilities, beginning of fiscal year

12,887

11,44496,511

Contract liabilities, end of fiscal year

14,264

12,887

106,820

Contract assets are mainly recognized in TA-Q-BIN transactions and are recognized based on the estimated revenue from

253,225

the progress of deliveries up to the end of the fiscal year. Contract assets are reclassified to receivables from contracts

171,975

233,182

with customers when the consolidated subsidiary’s rights to the consideration become unconditional.

222,943

2,280,040

4,583

4,583

880,967

227,526

2,284,623(42,691)(18,327)(64,734)

Operating revenues by reportable segments

1,172,414

838,276

209,199

2,219,889

Intersegment revenues or transfers(279,017)(26,091)(121,163)(426,271)¥ 893,397¥812,185¥ 88,036¥1,793,618

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial(3) Information about the Relationship between the Satisfaction of Performance Obligations under Contracts
with Customers and Cash Flows from Such Contracts, and the Amount and Timing of Revenue Expected to
be Recognized in Subsequent Periods from Contracts with Customers that Existed at the End of the Current
Fiscal Year

Total

(3,716)

Operating revenues from external customers

Notes: “Other” includes Yamato System Development Co., Ltd. (development of information systems), and Yamato Autoworks Co., Ltd. (collective vehicle management agent business for transportation companies).
Other revenues consist of transactions related to financial instruments included in the scope of ASBJ Statement No. 10, “Accounting Standard for
Financial Instruments,” such as installment sales.

¥1,793,633

1,176,130Internal segment revenues or transfers$ 449,643 $13,485,121(2) Information that Provides a Basis for Understanding Revenue from Contracts with Customers
The same information as in Note 2, “Summary of Significant Accounting Policies” is omitted.
None of the contracts include significant financial elements or variable consideration, and the contractual consideration
for services is generally received within 30–70 days from the time of revenue recognition. The contractual consideration fortransportation services provided to individual customers in the Retail Business Unit is received at the time the parcel is
accepted.

17. REVENUE RECOGNITION

RetailBusiness Unit

1,968,678

9,120,884

amount of the receivable, the period to maturity and the interest rate that takes into account credit risk for each receivable

Short-term loans

8825

RetailBusiness Unit

Contract liabilities mainly relate to advances received from customers who have subscribed to the Kuroneko Member
Discount program for TA-Q-BIN transactions. Contract liabilities are reversed upon the recognition of revenue.
Among the revenues recognized during the fiscal years ended March 31, 2023 and 2022, the amounts included in the
opening balance of contract liabilities were ¥10,427 million ($78,091 thousand) and ¥9,558 million, respectively.
The amounts of revenue recognized in the fiscal years ended March 31, 2023 and 2022, from performance obligations
satisfied in prior periods were immaterial.

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report89
26

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
19. EARNINGS PER SHARETransaction prices allocated to remaining performance obligations

The Group applies the practical expedient in noting transaction prices allocated to the remaining performance obligations
and does not include performance obligations with original expected contractual terms of one year or less and perfor-

Basic earnings per share (“EPS”) for the years ended March 31, 2023 and 2022, was as follows:

mance obligations for which the entity is entitled to receive consideration directly corresponding to the value to the cus-

Millions of Yen

tomer of the portion of the obligation that has been performed by the entity to date. As a result, there were no significant
performance obligations that should have been noted as the transaction price allocated to the remaining performanceYear Ended March 31, 2023

Basic EPS—Profit attributable to common shareholders

obligations.
The performance obligations with original expected contractual terms of one year or less mainly relate to TA-Q-BIN

Thousands ofSharesProfit Attributable to Weighted-average
Owners of Parent
SharesYen

U.S. Dollars
EPS¥45,898

362,446¥126.64¥55,956

370,488¥151.03$0.95

Year Ended March 31, 2022

transactions in the Retail Business Unit.

Basic EPS—Profit attributable to common shareholders

In addition, there were no material amounts of consideration arising from contracts with customers that were notincluded in the transaction price.

20. SEGMENT INFORMATION
18. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2023 and 2022, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2023

2022

2023

Adjustments arising during the year

¥ (304)¥ 10,727$ (2,274)

Reclassification adjustments to profit or loss

(1,970)(19,124)(14,757)

Amount before income tax effect(2,274)(8,397)(17,031)

Unrealized gain on available-for-sale securities:

Income tax effect
Total

51

2,982

387

¥(2,223)¥ (5,415)$(16,644)¥ 2,143¥ 1,437$ 16,051

Foreign currency translation adjustments:
Adjustments arising during the year
Reclassification adjustments to profit or loss

(643)

Amount before income tax effect2,143

Income tax effect
Total

794

16,051149

1,117¥ 2,292¥794$ 17,168¥ 488¥ (1,528)$ 3,660
3,689

Remeasurements of defined employees’ retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss

493

(5,982)

Amount before income tax effect981(7,510)

7,349

Income tax effect

(304)

2,227

(2,279)¥ 677¥ (5,283)$ 5,070

¥

¥

$

Total

(1) Description of Reportable Segments
The Group identifies operating segments as components of entity for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to beallocated to the segments and assess their performance.
Under the Company, which is the pure holding company, the Group manages business operations by customer segment and operates through group management structure consisting of the Retail Business Unit, which manages the Retailbusiness that provides delivery services for individual customers and mid-to-small sized corporations, the Corporate
Business Unit, which manages the Corporate business, the Global SCM business, and the EC business, that provide transportation services etc. for large corporations, and Other.
The Group defines the reportable segments as follows:
Retail Business Unit:
Delivery services for individual customers and mid-to-small sized corporations
Corporate Business Unit: Transportation services for large corporations, planning and operation of logistics centers,
customs services, air cargo agency services
Other:Development and operation of IT systems, car maintenance services, sales of fuel, non-life insurance agency services, cargo vehicle transportation services(2) Methods of Measurement for the Amounts of Segment Revenues, Segment Profit, Segment Assets, andOther Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of
Significant Accounting Policies.”

Share of other comprehensive income of entities accounted for using equity
method:Adjustments arising during the year
Reclassification adjustments to profit or loss
Total
Total other comprehensive income (loss)

90
27

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

1

¥

(54)

¥ 692

111
(3)

(55)
¥

108

¥ (9,796)

9
(416)

$

(407)

$ 5,187

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report91
28

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements(3) Information about Segment Revenues, Segment Profit, Segment Assets, and Other Items
Millions of Yen

2023
RetailBusiness Unit

Segment revenues:
Segment revenues from customers
Intersegment revenues
Total segment revenues
Segment profit
Segment assets
Other:
Depreciation and amortization
Investment in entities accounted forusing equity method
Increase of tangible and intangible
fixed assets

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated

Millions of Yen¥ 894,574¥846,053¥ 60,041¥1,800,668

323,338

16,455111,991

451,784¥(451,784)¥1,217,912¥862,508¥172,032¥2,252,452¥(451,784)¥1,800,668¥

32,298¥ 13,138¥ 13,901¥¥¥

788,000

181,737

142,259

1,111,996(4,409)1,107,587

21,884

14,796

4,097

40,777781

41,558

768

4,309

5,077

4,312

9,389

38,973

9,101

50,3985,293

55,691

59,3372,324—¥1,800,668

748

2022
RetailBusiness Unit

Corporate
Business Unit

Other

Total

Reconciliation¥

Consolidated¥ 893,397¥812,185¥ 88,036¥1,793,618

279,017

26,091

121,163426,271(426,271)¥1,172,414¥838,276¥209,199¥2,219,889¥(426,271)¥1,793,618¥

44,464¥ 17,178¥ 16,559¥¥(1,001)¥

749,718

194,571

156,573

1,100,862(14,007)

1,086,855

17,53813,265

3,812

34,615909

35,524

630

6,668

7,298

5,662

12,96056,587

12,06675,8992,673

78,572

78,201—¥1,793,618

TA-Q-BIN¥1,357,419

Kuroneko DM-Bin¥52,856

Other¥390,393

Total

TA-Q-BIN

Kuroneko DM-Bin¥1,800,668¥1,322,534¥54,323

Other

Total

¥416,761¥1,793,618

Thousands of U.S. Dollars
2023
TA-Q-BIN$10,165,646

Kuroneko DM-Bin$395,836

Other

Total

$2,923,639 $13,485,121(2) Information about Geographical Areas
The disclosure of operating revenues by geographical areas for the years ended March 31, 2023 and 2022, were omitted
since operating revenues to external customers in Japan account for more than 90% of the amount of operating revenues
in the consolidated statements of income.
The disclosure of property, plant and equipment by geographical areas at March 31, 2023 and 2022, were omitted
since property, plant and equipment in Japan account for more than 90% of the amount of property, plant and equipmentin the consolidated balance sheet.

77,200(3) Information about Loss on Impairment of Long-Lived Assets by Reportable Segments
Loss on impairment of long-lived assets by reportable segments for the years ended March 31, 2023 and 2022, were as
follows:
Millions of Yen
2023

7,246

2023
RetailBusiness Unit

$6,699,424

Corporate
Business Unit

$6,336,054

Other$ 449,643

RetailBusiness Unit

Loss on impairment oflong-lived assets

Thousands of U.S. Dollars

Segment revenues:
Segment revenues from customers
Intersegment revenues
Total segment revenues
Segment profit
Segment assets
Other:
Depreciation and amortization
Investment in entities accounted forusing equity method
Increase of tangible and intangible
fixed assets

2022

2023

60,085

Millions of Yen

Segment revenues:
Segment revenues from customers
Intersegment revenues
Total segment revenues
Segment profit
Segment assets
Other:
Depreciation and amortization
Investment in entities accounted forusing equity method
Increase of tangible and intangible
fixed assets[Related Information about Reportable Segments](1) Information about Products and Services
Operating revenues from customers for the years ended March 31, 2023 and 2022, were as follows:

Total$13,485,121

Reconciliation

$

¥281

Consolidated—

123,230

838,699

3,383,389(3,383,389)$9,120,884$6,459,284$1,288,342$16,868,510$(3,383,389)$13,485,121$ 241,881

$

$

$

$

98,391$ 104,103

5,901,297

1,361,024

1,065,370

8,327,691(33,022)5,599

8,294,669

449,974

163,887

110,808

30,685

305,380

5,845

311,225

Other

Eliminations
or Group-Wide

Total

¥966

¥1,995

Consolidated¥—¥1,995

Millions of Yen
2022$13,485,121

2,421,460

444,375¥748

Corporate
Business Unit

RetailBusiness Unit

Loss on impairment oflong-lived assets¥—

Corporate
Business Unit

¥701

Other

Eliminations
or Group-WideTotal¥1,719¥2,420Consolidated¥—¥2,420Thousands of U.S. Dollars

5,754

32,271

291,866

68,157

17,40838,02532,29270,317

377,431

39,637417,068

2023
RetailBusiness Unit

Loss on impairment oflong-lived assets$5,604

Corporate
Business Unit

$2,100Other$7,234

Eliminations
or Group-WideTotal$14,938

Consolidated$—$14,938

Notes: “Other” includes Yamato System Development Co., Ltd. (development of information systems), and Yamato Autoworks Co., Ltd. (collective vehicle
management agent business for transportation companies).
Reconciliations are as follows:(1) Reconciliations of segment profit for the years ended March 31, 2023 and 2022, of ¥748 million ($5,599 thousand) and ¥1,001 million, respectively,
include group-wide expenses that are not allocated to each reportable segment (general administrative expenses of the Company, which is a pureholding company) of ¥7,385 million ($55,308 thousand) and ¥10,384 million, and intersegment eliminations of ¥8,133 million ($60,907 thousand)and ¥9,383 million, respectively.
(2) Reconciliations of segment assets at March 31, 2023 and 2022, of ¥4,409 million ($33,022 thousand) and ¥14,007 million, respectively, include
intersegment eliminations of assets and liabilities of ¥112,277 million ($840,837 thousand) and ¥108,626 million, and group-wide assets which are
not allocated to each reportable segment of ¥107,868 million ($807,815 thousand) and ¥94,619 million, respectively.
(3) Reconciliations of investments in entities accounted for using equity method at March 31, 2023 and 2022, of ¥4,312 million ($32,292 thousand)and ¥5,662 million, respectively, are investments that are not allocated to each reportable segment.
(4) Reconciliations of increases of tangible and intangible fixed assets for the years ended March 31, 2023 and 2022, of ¥5,293 million ($39,637
thousand) and ¥2,673 million, respectively, are the Company’s capital investment.
Segment profit is reconciled with operating profit in the consolidated statement of income.
Segment assets of the Retail Business Unit at March 31, 2023 and 2022, of ¥788,000 million ($5,901,297 thousand) and ¥749,718 million, respectively,
include assets of the Transportation division and the Head Office division of Yamato Transport Co., Ltd. of ¥540,417 million ($4,047,156 thousand) and¥524,780 million, respectively.
Increase of tangible and intangible fixed assets of the Retail Business Unit for the years ended March 31, 2023 and 2022, of ¥38,973 million ($291,866
thousand) and ¥56,587 million, respectively, include the amount of increase of the Transportation division and the Head Office division of Yamato
Transport Co., Ltd. of ¥23,631 million ($176,969 thousand) and ¥36,936 million, respectively.

92
29

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report93
30

FINANCIAL SECTIONFINANCIAL SECTION

Part 4

Part 4

Notes to Consolidated Financial Statements
21. SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWSIn January 2022, the Company sold 51% of the shares of Yamato Home Convenience Co., Ltd. As a result, Yamato Home
Convenience Co., Ltd. was excluded from the scope of consolidation.
The assets and liabilities of Yamato Home Convenience Co., Ltd. at the time of sales and reconciliation between the
selling price and the payment for sales of shares are as follows:
Millions of Yen
2022

Current assets¥10,655

Long-lived assets

1,266

Current liabilities(5,003)Long-term liabilities(467)

Investment account after sales of shares(3,161)

Loss on sales of shares(2,673)

Other

(617)

c. Appropriations of Retained Earnings(111)

meeting held on May 17, 2023:

Selling price
Incidental cost for sales of shares
Cash and cash equivalents
Net payment for sales of sharesb. Issuance of Bonds
At the meeting held on May 17, 2023, the Board of Directors of the Company resolved matters related to issuance of unsecured bonds with an inter-bonds pari passu clause (Green Bond) as follows:
Total issuance amount: ¥20,000 million ($149,779 thousand)Amount per bond:¥100 million ($749 thousand)Issuance price:¥100 ($0.75) per ¥100 ($0.75) of each bondInterest rate:
Up to the yield on Japanese government bonds with the remaining period equal to maturity of thebond plus 0.5%
Redemption method: Bullet maturity amortization
Maturity:
5 years
Date of issuance:
July 6, 2023
Use of funds:
Investment related to environment

The following appropriation of retained earnings at March 31, 2023, was approved at the Company’s Board of Directors(7,202)¥ (7,313)

22. SUBSEQUENT EVENTS

Year-end cash dividends, ¥23 ($0.17) per share*

Millions of Yen

Thousands of
U.S. Dollars¥8,343$62,483* The total cash dividends approved at the Company’s Board of Directors meeting held on May 17, 2023, include the dividends of ¥11 million($83 thousand) for
the share of the Company held by “Board Benefit Trust (BBT).”a. Purchase and Retirement of Treasury StockAt the meeting held on May 10, 2023, the Board of Directors of the Company resolved matters related to the purchase oftreasury stock in accordance with the provisions of articles of incorporation of the Company pursuant to Article 459,
Paragraph 1, item 1 of the Companies Act, and retirement of treasury stock in accordance with the provisions of Article
178 of the Companies Act.
(1) Reason for purchase and retirement of treasury stock
Improvement of capital efficiency and enhancement of return to shareholders(2) Outline of matters related to purchase of treasury stock
Type of shares to be purchased:
Common stock of the Company
Total number of shares to be purchased: Up to 22 million shares (Ratio against the total number of issued shares(excluding treasury stock): 6.06%)(Note) The Company’s shares held by BBT are not included in the above treasury stock.
Acquisition cost:
Up to ¥ 50,000 million ($374,448 thousand)Purchase period:
From May 17, 2023 to February 29, 2024
Purchase method:
Purchase through the market(3) Outline of retirement of treasury stock
Type of shares to be retired:
Common stock of the Company
Total number of shares to be retired: All of the treasury stock purchased through (2) above
Date of retirement:
March 29, 2024 (planned)

94
31

YAMATO HOLDINGS CO., LTD.
IntegratedStatements
Report 2023with Independent Auditor’s Report
Financial

YAMATO HOLDINGS CO., LTD.

Integrated
Report2023
Financial Statements with Independent
Auditor’s
Report95
32