Translation
August 12, 2021

Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2022
<under Japanese GAAP>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Yamato Holdings Co., Ltd.
Tokyo Stock Exchange
9064
https://www.yamato-hd.co.jp/
Yutaka Nagao, President
Atsushi Kashimoto, Managing Executive Officer, Responsible for Finance and Investor Relations
Tel: +81-3-3541-4141 (from overseas)
Scheduled date of the submission of quarterly securities report:
August 13, 2021
Scheduled date of the commencement of dividend payment:—
Preparation of supplementary materials on quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes(Amounts less than 1 million yen are discarded.)1.

Consolidated financial results for the first quarter of fiscal year 2022
(cumulative: from April 1, 2021 to June 30, 2021)(1) Consolidated operating results

For the three months ended
June 30, 2021
June 30, 2020
(Note) Comprehensive income:(Percentages represent year-on-year changes.)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
419,841
7.1
12,73427.9
16,24954.3
11,705239.0
392,015
2.7
9,953—
10,532—
3,453—
For the three months ended June 30, 2021:
17,439 million yen (276.8 %)For the three months ended June 30, 2020:
4,627 million yen (— %)Basic earnings per share

Diluted earnings
per share

For the three months ended
Yen
Yen
June 30, 2021
31.55—
June 30, 2020
9.04—
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations from the beginning of the first quarter of the fiscal year 2022, and figures in the consolidated operating results
for the three months ended June 30, 2021, are those after applying the accounting standard and relevant revised ASBJ regulations.

(2) Consolidated financial position
Total assets
Net assets
Equity-to-asset ratio
As ofMillions of yen
Millions of yen%
June 30, 2021
1,119,518
586,940
51.7
March 31, 2021
1,089,991
584,287
52.9(Reference) Equity:
As of June 30, 2021:
579,094 million yen
As of March 31, 2021:
576,367 million yen(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations from the beginning of the first quarter of the fiscal year 2022, and figures in the consolidated financial position
as of June 30, 2021, are those after applying the accounting standard and relevant revised ASBJ regulations.

2.

Dividends
First quarter
Yen——

Second quarter
Yen
16.00

Fiscal 2021
Fiscal 2022
Fiscal 2022 (Forecast)
23.00(Note) Revisions to the forecasts most recently announced: None

3.

Annual dividends
Third quarter
Yen—

Fiscal year-end
Yen
30.00

—

23.00

Total
Yen
46.00
46.00

Consolidated earnings forecasts for fiscal year 2022 (from April 1, 2021 to March 31, 2022)
Operating revenue

Operating profit

Millions of yen%
Millions of yen
Half year
840,000
4.2
28,000
Full year
1,765,000
4.1
95,000(Note) Revisions to the forecasts most recently announced: Yes

%
4.0
3.1

(Percentages represent year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings
owners of parent
per share
Millions of yen%
Millions of yen%
Yen
31,00011.0
11,000 (22.5)
29.65
98,0004.2
54,000(4.8)
145.54* Notes(1) Changes in significant subsidiaries during the three months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements (Application of specific accounting for preparing the quarterly consolidated financial statements)” of the attached materials to
the quarterly financial results report on page 12.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes due to revision to accounting standards, etc.: Yes
b. Changes other than a:Yesc. Changes in accounting estimates:
Yes
d. Restatement:
None(Note) For details, please see “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial
statements (Changes in accounting policies)” of the attached materials to the quarterly financial results report on page 12.

(4) Number of issued shares (common shares)
a. Number of issued shares as of the end of the period (including treasury shares)
As of June 30, 2021:
388,575,592 shares
As of March 31, 2021:
388,575,592 sharesb. Number of treasury shares as of the end of the period
As of June 30, 2021:
17,550,686 Shares
As of March 31, 2021:
17,550,515 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2021:
371,024,970 Shares
For the three months ended June 30, 2020:
381,972,729 shares*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
*Proper use of earnings forecasts and other noteworthy events• Descriptions of the above financial projections and other data are based on information currently available to the Company and certain
assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various
reasons. For points to note when using such assumptions and financial projections, please see “1. Qualitative Information on Settlement of
Accounts for the Three Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements” of the attachedmaterials to the quarterly financial results report on page 7.
• The Company plans to post supplementary materials on quarterly financial results on the Company’s website promptly after theannouncement of the quarterly financial results.

Attached Materials
Index
1. Qualitative Information on Settlement of Accounts for the Three Months............................................................... 2(1) Explanation of operating results ...................................................................................................................... 2(2) Explanation of financial position ...................................................................................................................... 7(3) Explanation of consolidated earnings forecasts and other forward-looking statements .................................. 7
2. Consolidated Financial Statements and Significant Notes Thereto ........................................................................ 8(1) Consolidated balance sheet ............................................................................................................................ 8(2) Consolidated statement of income and consolidated statement of comprehensive income .......................... 10
Consolidated statement of income (cumulative) ............................................................................................ 10
Consolidated statement of comprehensive income (cumulative) .................................................................. 11(3) Notes to consolidated financial statements ................................................................................................... 12(Notes to premise of going concern) ............................................................................................................. 12(Notes on significant changes in the amount of shareholders’ equity)........................................................... 12(Application of specific accounting for preparing the quarterly consolidated financial statements) ............... 12(Changes in accounting policies)................................................................................................................... 12(Segment information, etc.) ........................................................................................................................... 13(Important subsequent matters) .................................................................................................................... 15
3. Supplementary Information .................................................................................................................................. 16
Operating revenue by segment ............................................................................................................................ 16-1-

1. Qualitative Information on Settlement of Accounts for the Three Months(1) Explanation of operating results
During the first three months ended June 30, 2021, the economic environment continued to be affected by the
global spread of the novel coronavirus disease (COVID-19). Amid that situation, business sentiment has been
showing signs of improvement particularly in the manufacturing industry, yet the outlook for economic recovery
remains difficult to project particularly with the pandemic resurging at home and abroad.
Meanwhile, COVID-19 has accelerated growth in the e-commerce domain across all industries amid a scenario
of changes in consumer behavior and lifestyles brought about by developments such as companies promoting
telework arrangements and a shift to online services in the fields of medicine and education.
Under such circumstances, the Yamato Group embarked on a new Group management structure centered on
the “New Yamato Transport,” which combines management resources of our respective Group companies, withthe aim of sustainably increasing its corporate value by contribution to the creation of an enriched society as
stated under its Management Philosophy. In addition, we took steps to furthermore provide comprehensive
value by meeting the needs of our customers and society by transforming supply chains in response tochanging lifestyles and changing distribution structure, based on the medium-term management plan, “OneYamato 2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year.
Our consolidated financial results for the three months ended June 30, 2021 are as follows.
(Millions of yen)
Item
Operating revenue
Operating profit
Ordinary profit
Profit attributable toowners of parent

For the three months
ended June 30, 2020
392,015
9,953
10,532For the three months
ended June 30, 2021
419,841
12,734
16,2493,453

11,705

ChangeGrowth (%)

27,825
2,780
5,716

7.1
27.9
54.3

8,252

239.0

For the three months ended June 30, 2021, operating revenue amounted to 419,841 million yen, up 27,825
million yen from the previous year.
This is largely attributable to having achieved an increase in the parcel delivery volume as a result of taking
action in the burgeoning e-commerce domain and is a result of having focused on optimizing logistics forcustomers, despite a recoiling of demand after it had surged under the government’s first state of emergency
declaration in the same period of the previous year.
Operating expenses amounted to 407,107 million yen, up 25,044 million yen from the previous year.
This was due to factors that include an increase in strategic costs associated with our promotion of themedium-term management plan, “One Yamato 2023” initiated in April 2021, in addition to factors that include anincrease in transportation costs associated with higher delivery volume, along with a rising unit price of fuel,despite progress achieved in optimizing costs by making optimal allocations of management resources.
As a result, for the three months ended June 30, 2021, operating profit amounted to 12,734 million yen, up
2,780 million yen from the previous fiscal year.
In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year
under review.
In addition, effective from the first quarter of the fiscal year under review, the Company and its domestic
consolidated subsidiaries have changed to the straight-line method as their depreciation method for property,
plant and equipment from the declining-balance method previously, and have accordingly modified useful livesof some vehicles, in order to allocate costs in a manner that better reflects actual use of assets.
Details are shown on “2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes toconsolidated financial statements (Changes in accounting policies).”
Initiatives for the entire Yamato GroupThe Yamato Group has been continuously working to increase its corporate value based on the medium-term
management plan, “One Yamato 2023,” aiming to provide comprehensive value with respect to diversifying
needs of customers and society.
Furthermore, in response to the spread of COVID-19 and to ensure that customers can use TA-Q-BIN withpeace of mind, we have continued to make sure that employees practice full hygiene management, and-2-

focused on implementing contact-free deliveries and other infection prevention measures when interacting withcustomers, using our website to share information, and continuing to provide logistics services, including TA-QBIN.
① Increasing productivity across the entire Yamato GroupIn order to address the increasingly diverse needs of our customers, we have continued working to
optimally allocate the Group’s management resources while striving to improve the accuracy of ourdemand and operating amount forecasts on the basis of data analysis. In addition, we have beencoordinating efforts to the Retail Business Unit, Corporate Business Unit, Transportation Function Division,and Digital Function Division with respect to optimizing and standardizing our delivery process bytransforming work operations, and shifting to automation and digitization, thereby increasing the amount oftime frontline personnel interact with our customers, expanding our collection and delivery capabilities, andenabling us to make improvements in safety and quality. Moreover, our Professional Service Function
Division has been spearheading efforts to reduce the administrative and indirect operations workload of
our frontline personnel by engaging in business process re-engineering (BPR), which has involved
standardizing and digitizing such tasks.
② Increasing operating revenue through growth in the corporate client domain
For our corporate clients who have been coping with changes in consumer behavior and lifestyles causedby the spread of COVID-19, we have been advancing proposals for helping to address customers’
business challenges by optimizing management resources for corporate business such as previously
dispersed sales functions, logistics and distribution functions, and the trunk-route transportation network
connecting our distribution centers. In addition, our Corporate Solutions Control Center, which
consolidates sales information, created optimal proposals for all of our corporate clients and launchedinitiatives to promote frontline sales activities. Moreover, we have been working to provide comprehensive
value across entire supply chains by streamlining distribution for customers, which has involved building
transportation networks with the addition of networks for corporate enterprises to TA-Q-BIN and EAZY
transportation modes, and organically combining that with respective sites of the Yamato Group.
We have been tapping ever-expanding e-commerce (EC) demand by making functional improvements,
such that include promoting systemic improvement of our EAZY CREW delivery partners andimplementing schemes that prevent third parties from identifying personal information on delivery slips
when dropping off packages in front of residences. In addition, above and beyond deliveries, we havebeen engaging in initiatives for sales support to producers enlisting Live Commerce functions, andproposing solutions in upstream domains of logistics, particularly in areas that include e-commercecompany procurement and inventory liquidation.
③ Promoting strategies for achieving sustainable enhancement of corporate value
With the aim of sustainably enhancing our corporate value, we have engaged in initiatives under our “OneYamato 2023” plan that involve promoting data and innovation strategies, reforming management structure
and reinforcing governance, engaging in HR strategy which supports “Innovating Delivery Business,”
improving capital efficiency, and strengthening sustainable management.
Our data strategy aims at maintaining digital data and enhancing digital platforms to achieve moresophisticated use of date. Meanwhile, our innovation strategy moved forward with initiatives to promote
open innovation, which entails discovering and collaborating with startups, as well as to invest in such
startups with the aim of creating new businesses, particularly using the “KURONEKO Innovation Fund.”We are also working on strengthening governance based on the new Group management structure
through ongoing efforts to strengthen corporate governance. This will entail separating management
supervision and execution, maintaining and enhancing management transparency, as well as enhancing
governance with an emphasis on decision-making speed.
When it comes to HR strategy which supports “Innovating Delivery Business,” we will promote initiatives
for enhancing our digital education programs with the aims of increasing digital literacy of all employees
including management and rapidly developing digitally literate employees. In order to strike a balance
between sustainable growth and the development of a sustainable society, we have been engaging inbusiness in a manner that involves considering the environment and society, in part by streamlining
transportation in a manner that involves attentively connecting people with resources and data. These
efforts have been underpinned by our dual visions, one of which is “Connect. Deliver the Future via Green-3-

Logistics.” and the other of which is, “Through Co-Creation and Fair Business Activities, Help Create aSociety That ‘Leaves No One Behind.”
Business strategies of each segment
The Company has changed its classification of reportable segments, effective from the first quarter of the fiscal
year under review. As such, figures for the previous corresponding period have been restated to the newreportable segments to enable segment comparisons.

 Retail Business Unit
① The Retail Business Unit provides high-quality parcel delivery services such as TA-Q-BIN and hasotherwise been working to provide value that addresses needs of our customers by drawing on the
distinctive characteristics of TA-Q-BIN in terms of its points of contact with a broad range of customers.
During the three months ended June 30, 2021, the business unit has been focusing on proposing
solutions that draw on the Group’s management resources in collaboration with the Corporate Business
Unit, in a manner whereby frontline personnel grasp customer changes associated with lifestyles and thebusiness environment, thereby serving as a starting point for business of the entire Yamato Group.
Moreover, it has also been working in collaboration with the Platform Function Division, in part throughefforts to upgrade services that make delivery and pick-up more convenient, particularly the “Kuroneko
Members” service, which has more than 50 million registered members, and the “Yamato Business
Members” service, which is used by more than 1.3 million corporate clients, and also through efforts to
upgrade various services other than those involving transportation that are beneficial in terms of people’s
lives and business.
② The Retail Business Unit continues to address customer needs and is providing a variety of pick-up
methods. Moreover, it launched QR code payment settlement with the aim of ensuring greater
convenience by promoting cashless payment for payment of TA-Q-BIN fees and packaging material rates
taking into account customers’ changing lifestyles. In addition, working in collaboration with theTransportation Function Division and Digital Function Division, the Retail Business Unit has been striving
to improve the accuracy of demand and operating amount forecasts in respective geographic regions, andhas been endeavoring to increase productivity by appropriately allocating personnel and by heightening
efficiency of collection and delivery and of our trunk-route transportation.
③ In terms of profitability, operating revenue from customers amounted to 207,002 million yen, up 3.4% fromthe previous fiscal year, mainly as a result of the business unit having engaged in efforts to optimallydeliver parcels in alignment with diversifying needs and it having focused on acquiring parcels from small
businesses in collaboration with the Corporate Business Unit. Operating revenue of the Retail Business
Unit overall amounted to 269,400 million yen, down 3.3% from the previous year, as a result of parcels
from e-commerce companies, which had shown a dramatic increase in the previous year, having beenshifted to the Corporate Business Unit.
Although operating expenses decreased by 1.0% from the previous year largely due to lower personnel
expenses, and despite higher transportation costs associated with rising unit price of fuel and higherdelivery volume, operating profit decreased by 87.0% from the previous year.

 Corporate Business Unit
① The Corporate Business Unit provides value across entire corporate logistics supply chains, including
midstream and upstream domains of business. During the three months ended June 30, 2021, it took on
initiatives that included planning supply chain management (SCM) strategies that contribute to customers’
business decisions, above and beyond improving and streamlining logistics operations, and it furthermore
engaged in account management, which involved developing effective projects and assuming
responsibility through to management and operation. In addition, for customers who have turned toservices in the downstream realm of their supply chains, the business unit sought to provide value in the
midstream and upstream domains. This involved building relationships of trust with such customers,
identifying supply chain and managerial issues, and proposing solutions to address such issues.
② For retailers who are developing physical stores and e-commerce omni-channel sales frameworks, thebusiness unit has been promoting efforts to optimize inventory and distribution through centralized-4-management, thereby liquidating sales inventories with customers’ omni-channel operations by combining
restructured business facilities and transportation networks under the “One Yamato Structure.”③ For a major cosmetics company of French origin with whom we have entered into a strategic partnership,with the aim of developing an optimal supply chain for domestic distribution, the business unit has beenworking to bring about greater convenience by helping strengthen the sales structure for store staff,
shortening lead times with respect to merchandise purchased from the official online shopping website,and developing diverse means of taking receipt of merchandise.
④ For the ever-growing e-commerce domain, the business unit has been promoting sales expansion of the“EAZY” delivery service, which enables greater purchase, delivery and pick-up convenience and safety. In
addition, to optimize logistics for e-commerce vendors with stores in online shopping malls, we used ourpartnerships with major e-commerce companies to implement initiatives to further improve convenienceand expand sales for services that completely or partially replace operational functions from order
receiving to shipping and delivery.
⑤ Operating revenue from customers amounted to 190,355 million yen, up 10.0% from the previous fiscal
year, mainly as a result of the business unit tapping growing e-commerce demand, promoting logistics
optimization of corporate clients, and encountering recovery of import-export freight movement, which had
been stagnant due to the global spread of COVID-19. Operating profit was 8,126 million yen, up 306.6%
from the previous year.
(Reference)(Million parcels / units)
For the three months
ended June 30, 2020

For the three months
ended June 30, 2021

Parcel delivery

491

539

48

9.8

Kuroneko DM-Bin

194

212

18

9.7

Category
TA-Q-BIN/TA-Q-BIN Compact/EAZY/Nekopos

ChangeGrowth (%)

 Other① During the three months ended June 30, 2021, we promoted efforts to expand sales for transportation bytransport box taking advantage of its network consisting of multiple companies and for vehicle
maintenance services.
② Operating revenue from customers was 22,483 million yen, up 20.5% from the previous year. Operating
profit was 4,697 million yen, up 4,354 million yen from the previous year.
ESG Initiatives① The Yamato Group places utmost priority on protecting human life and conducts a range of safetymeasures. Accordingly, its transport safety management practices in that regard involve drawing up its
Safety Management Regulations, building up its transport safety management systems, and formulating
fiscal year plans, all centered on respective Group companies whose main operations involve transport.
During the three months ended June 30, 2021, the entire Yamato Group carried out the “Zero Traffic
Accidents Campaign” in order to improve safety awareness on a Group-wide basis and also sought toprevent occupational accidents. Due to COVID-19, we refrained from holding our “Safety Classes forChildren,” which we have been continually offering to children in day care facilities, kindergartens andelementary schools across Japan since 1998 with the aim of convey the importance of traffic safety.
② Based on its corporate philosophy, the Yamato Group carries out business activities in accordance withthe law and social norms and actively promotes compliance management. Striving to maximize corporate
value is one of the top priorities of management, and we have implemented measures and bolstered
management systems as part of our corporate governance initiative. During the three months ended June30, 2021, we have continued to work to furthermore strengthen our Group governance with the aim ofenhancing sound Group management based on “One Yamato Structure.”③ The Yamato Group has been promoting sustainability initiatives with the aim of striking a balance between
sustainable growth and the development of a sustainable society, based on its transformation plan
“YAMATO NEXT100,” which serves as a grand design for management over the medium to long term. In
addition, we have formulated the Sustainable Medium-Term Environmental Plan 2023 and Medium-Term
Social Plan 2023, with the aim of achieving our two visions stated as “Connect. Deliver the Future via
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④

⑤

⑥

⑦

Green Logistics” and “Through Co-Creation and Fair Business Activities, Help Create a Society That
Leaves No One Behind,” set forth for the creation of a sustainable future. We are currently seeking toevolve into a company that supports society’s development in a manner that meets current and futureneeds of our customers and communities, and have accordingly been working toward strengthening
sustainable management upon having set specific actions to be taken on each materiality and targets tobe achieved by the fiscal year ending March 31, 2024.
Under the “Environmental” component of its Sustainable Medium-Term Environmental Plan 2023 andMedium-Term Social Plan 2023, the Yamato Group aims to reduce the environmental burden of its
business activities. To such ends, we have set absolute targets as well as targets for areas in the logistics
industry where we can contribute to the widespread use of innovative technology, such as materials andvehicles. Given that these targets also cover initiatives and business opportunities in collaboration withdiverse partners, we will work to increase the resilience of our customers, partners, and local communities,
and to create environmental value. During the three months ended June 30, 2021, we have been taking
action to achieve the vision of virtually zero carbon dioxide emissions (in-house emissions) by 2050,
established as a long-term goal. This entails efforts that include shifting to use of vehicles that produce
lower greenhouse gas emissions, adopting collection and delivery methods that do not generate
greenhouse gas emissions through use of hand trucks, bicycles and other such modes of transportation,and using electricity derived from renewable energy. Due to COVID-19, we refrained from holding our“Kuroneko Yamato Environmental Class” sessions, which we have been continually offering nationwide
since 2005, with the aim of providing support for environmental education of children who will bear
responsibilities of the next generation.
Under the “Social” component of its Sustainable Medium-Term Environmental Plan 2023 and MediumTerm Social Plan 2023, the Yamato Group has incorporated initiatives to meet international standards andneeds in order to realize an enriched society through its business activities. Given that our targets also
cover labor and human rights-related issues, we have been developing a work environment in which we
respect diverse personnel and in which employees are able to play active roles. In addition, we have beencreating an employee-friendly and rewarding working environment for our approximately 220,000
employees, who we regard as the Group’s greatest asset.
Aiming to create more sustainable social value, the Yamato Group promotes initiatives for sharing value
with society based on the concept of “Creating Shared Value (CSV).” During the three months ended June30, 2021, we opened our Neko Support Station Fujisawa Sustainable Smart Town (SST) location in
Fujisawa City, Kanagawa Prefecture, for supporting healthy and sustainable development of thecommunity as well as safe and comfortable lives of local residents. Our initiatives in this new locally-based
community have involved setting up housekeeping support services, monitoring services that use“HelloLight” IoT light bulbs, consultation services for everyday life, and holding events that enableinteraction among community members.
Aspiring to be a company that continually evolves in step with society, led by Yamato Welfare Foundation,
the Yamato Group conducts various activities to help realize a society in which disabled people canexperience the joy of working autonomously. Specifically, we engage in ongoing programs that support
economic independence of people with disabilities, such that include actively employing people withdisabilities at the Swan Bakery which makes and sells bread, providing them with workplaces through theconsigned delivery of Kuroneko DM-Bin, and operating job-finding support facilities where they take part intraining to acquire skills and knowledge necessary for employment.

-6-(2) Explanation of financial position
Total assets were 1,119,518 million yen as of June 30, 2021, up 29,526 million yen from the end of the previous
fiscal year. The increase was largely attributable to increases in notes and accounts receivable - trade, andcontract assets of 6,909 million yen and investment securities of 6,346 million yen mainly due to fair value
assessment.
Liabilities increased 26,873 million yen to 532,577 million yen from the end of the previous fiscal year. The
increase was largely attributable to increases in short-term borrowings of 20,000 million yen and accrued
expenses of 58,475 million yen mainly due to recording of summer bonuses, despite a decrease in provision forbonuses of 24,066 million yen and a decrease in income taxes payable of 23,995 million yen due to payment ofincome taxes.
Total net assets were 586,940 million yen, up 2,653 million yen from the end of the previous fiscal year. The
major factors included an increase in accumulated other comprehensive income of 5,509 million yen mainly
due to fair value assessment of investment securities, despite a decrease in retained earnings of 3,343 million
yen due to cumulative effects of changes in accounting policies.
Accordingly, the equity ratio changed to 51.7% from 52.9% of the previous fiscal year.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
As ramifications from the global spread of COVID-19 persist, the prospect of full-fledged economic recovery
remains difficult to foresee amid resurgence of the virus in Japan and abroad, and despite business sentiment
having been showing signs of improvement, particularly in the manufacturing industry. Meanwhile, COVID-19
has accelerated growth in the e-commerce domain across all industries amid a scenario of changes in
consumer behavior and lifestyles brought about by developments such as companies promoting teleworkarrangements and a shift to online services in the fields of medicine and education.
Under such circumstances, the Yamato Group has been working to provide comprehensive value in addressing
needs of its customers and society with its sights set on transforming the supply chain in response to changing
lifestyles and distribution structures, based on the medium-term management plan, “One Yamato 2023,” withthe fiscal year ending March 31, 2024 set as its final fiscal year.
During the fiscal year ending March 31, 2022, we will continue to address growing e-commerce demand byaccelerating development of our e-commerce delivery networks, improving pick-up convenience, and providing
solutions tailored to e-commerce companies and sellers. We will also increase operating revenue by not only
organically combining TA-Q-BIN, e-commerce delivery, and middle-mile networks with our network of businessfacilities, and streamlining distribution but also focusing on providing value across the entire supply chain
through efforts that involve making backyard operations related to stores and e-commerce operations more
efficient, reducing sales opportunity loss and optimizing inventories.
As for expenditures, we will continue to focus on optimizing costs, which will involve enlisting data analysis withrespect to making optimal allocations of management resources and further streamlining trunk-routetransportation. In so doing, we will take into account critical challenges with respect to achieving greater
productivity while addressing increasing demand particularly in e-commerce given the shrinking labor
population and other such changes in the business environment.
The Yamato Group has made changes to the consolidated earnings forecasts for the half year and for the fullyear of the fiscal year ending March 31, 2022 since the announcement made on April 28, 2021.

-7-

2. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021

As of June 30, 2021

AssetsCurrent assets
Cash and deposits

241,523

236,572

Notes and accounts receivable - trade212,766––

219,675

Accounts receivable - installment

45,64345,049Merchandise and finished goods

392

417

Work in process

117

67

Notes and accounts receivable - trade, and contract
assetsRaw materials and supplies

1,770

1,619

Other

27,50839,318

Allowance for doubtful accounts(1,341)(1,359)Total current assets

528,379

541,360

367,718

367,287

Accumulated depreciation(214,421)(215,816)

Buildings and structures, net

153,296

151,470

199,976

200,365(185,268)(184,177)

14,70816,188Land

174,140

174,144

Leased assets

36,64537,262

Accumulated depreciation(10,467)(10,974)

Leased assets, net

26,17826,287

Non-current assets
Property, plant and equipment
Buildings and structures

VehiclesAccumulated depreciation
Vehicles, net

Other137,034

140,713

Accumulated depreciation(99,046)(99,456)

Other, net

37,98841,256406,312409,348

29,55533,857

Investment securities

52,23158,578

Other

74,89277,820Allowance for doubtful accounts(1,379)(1,446)

Total investments and other assets

125,744

134,951

561,612578,157

1,089,991

1,119,518

Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-8-

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade153,860

143,864

Short-term borrowings

34,00054,000

Lease obligations

5,054

5,436

Income taxes payable

32,0998,103

Deferred installment income

4,781

4,779

Provision for bonuses

40,173

16,106

Other

119,401

182,946

Total current liabilities

389,369

415,237

Lease obligations

26,09826,162Retirement benefit liability

71,83472,301

Other

18,401

18,875

Total non-current liabilities

116,334

117,340

505,704

532,577

127,234

127,234

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

36,81336,813Retained earnings

431,571428,789

Treasury shares(39,549)(39,549)

Total shareholders’ equity

556,070

553,287

Valuation difference on available-for-sale securities

15,883

20,719Foreign currency translation adjustment(1,316)(350)

Remeasurements of defined benefit plans

5,730

5,438

Total accumulated other comprehensive income

20,29725,807

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

-9-

7,919

7,845

584,287

586,940

1,089,991

1,119,518

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)
For the three months ended
June 30, 2020

For the three months ended
June 30, 2021

Operating revenue

392,015

419,841

Operating costs

366,891

391,642

Operating gross profit

25,12428,199Selling, general and administrative expenses

15,171

15,464

Operating profit

9,953

12,734Non-operating income
Interest income

57

46

Dividend income

379

470

–

2,925

373

–

Gain on investments in investment partnerships
Electric vehicle subsidies
Other

306

512

Total non-operating income

1,117

3,955

Interest expenses

173

199

Share of loss of entities accounted for using equity method

206

169

Other

158

70

Total non-operating expenses

537

439

10,532

16,249Gain on sales of non-current assets

00Gain on sales of investment securities

38–

Penalty income–

53

Total extraordinary income

39

53

Loss on retirement of non-current assets

67

67

Loss on valuation of investment securities

118

–

1,163

–

–

5

1,349

72

Profit before income taxes

9,222

16,230

Income taxes

5,740

4,462

Profit3,482

11,767

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Loss associated with measures to address COVID-19
Other
Total extraordinary losses

Profit attributable to non-controlling interests

29

61

Profit attributable to owners of the parent

3,453

11,705- 10 -

Consolidated statement of comprehensive income (cumulative)(Millions of yen)
For the three months ended
June 30, 2020

For the three months ended
June 30, 2021

3,482

11,767

Valuation difference on available-for-sale securities

1,350

4,998

Foreign currency translation adjustment

(892)

960

Remeasurements of defined benefit plans, net of tax

686

(292)

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

(0)

4

1,145

5,671

4,627

17,439Comprehensive income attributable to owners of parent

4,461

17,215Comprehensive income attributable to non-controllinginterests

166

223

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to- 11 -

(3) Notes to consolidated financial statements(Notes to premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Application of specific accounting for preparing the quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimatedeffective tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal
year including the first quarter under review.
(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, Etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year
under review, and it has recognized revenue at the time the control of promised goods or services istransferred to the customer at the amount expected to be received upon exchange of said goods orservices. As such, whereas revenue derived from certain business transactions including transportation
income involving the Yamato Group’s mainstay service, TA-Q-BIN, was previously recognized whenparcels, etc. were consigned to TA-Q-BIN, the Company will now recognize such revenue upon fulfillmentof performance obligations.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new
accounting policy had been applied to periods prior to the beginning of the first quarter of the fiscal year
under review was added to or deducted from the opening balance of retained earnings of the first quarter ofthe fiscal year under review, and thus the new accounting policy was applied from such opening balance.
However, by applying the method set forth in item (1) of the supplementary provisions of paragraph 86 of
the Accounting Standard for Revenue Recognition, modifications to contracts carried out prior to thebeginning of the first quarter of the fiscal year under review were accounted for based on the contractual
terms after all contract modifications were reflected. Consequently, this cumulative effect was added to or
deducted from the opening balance of retained earnings of the first quarter of the fiscal year under review.
For the first three months ended June 30, 2021, as a result of this change, operating revenue increased by
5 million yen, and operating costs increased by 902 million yen, while operating profit, ordinary profit andprofit before income taxes each decreased by 896 million yen. In addition, retained earnings as of the
beginning of the fiscal year under review decreased by 3,343 million yen.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations,“Notes and accounts receivable - trade” under current assets of the consolidated balance sheet as of theend of the previous fiscal year has been included in “Notes and accounts receivable - trade, and contract
assets” under current assets from the quarterly consolidated balance sheet as of the end of the first quarterof the fiscal year under review. In accordance with the transitional treatment provided for in paragraph 89-2of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been
restated in accordance with the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year
under review. In the future, the Company will furthermore apply new accounting policy stipulated by the
Accounting Standard for Fair Value Measurement and relevant ASBJ regulations subject to the transitional
treatment provided for in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019). In addition, this application has no impact on quarterly consolidated financial statements isimmaterial.

- 12 -

Changes in accounting policies which are difficult to distinguish from changes in accounting estimates andchanges in accounting estimates
Changes in depreciation method for property, plant and equipment and changes in useful life
Effective from the first quarter of the fiscal year under review, the Company and its domestic
consolidated subsidiaries have changed to the straight-line method as their depreciation method forproperty, plant and equipment (excluding leased assets) from the declining-balance method previously(however, the straight-line method has been adopted for buildings acquired on or after April 1, 1998
(excluding facilities attached to buildings) and for facilities attached to buildings and structures acquiredon or after April 1, 2016). Overseas consolidated subsidiaries have been using the straight-line methodthus far.
Based on its medium-term management plan, “One Yamato 2023,” the Yamato Group has transitioned
to its “One Yamato” management structure, which has involved transforming to a fully optimizedorganization structured according to customer segments and further accelerating management. To suchends, Yamato Transport Co., Ltd. carried out absorption-type mergers and absorption-type company
splits involving seven Group companies. In so doing, we were able to review our use of property, plantand equipment in Japan.
We consequently changed to the straight-line method, upon having deemed that the straight-line
method of allocating costs more rationally reflects actual use of assets given that we expect our asset
use in Japan to remain consistent.
In addition, the Company and its domestic consolidated subsidiaries conducted surveys on actual use ofproperty, plant and equipment, on the occasion of reviewing changes to the depreciation method of
property, plant and equipment. Effective from the first quarter of the fiscal year under review, theyconsequently revised useful life figures of some vehicles based on more realistic, economically feasible
forecast periods. This change will apply into the future.
As a result, operating profit, ordinary profit, and profit before income taxes for the first quarter of the
fiscal year under review are each 2,336 million yen increased more than would have been the caseusing the previous method.
(Segment information, etc.)[Segment information]
I. For the three months ended June 30, 2020
1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)

Operating revenue
Operating revenue from
customers
Inter-segment operating revenue
or transfers
Total
Segment profit

Retail Business
Unit

Corporate
Business Unit

Other
(Note 1)

200,277

173,081

18,65578,455

5,652

278,733
7,628

178,734
1,998

Total

Reconciliation(Note 2)

Amountrecorded inconsolidated
statement ofincome(Note 3)392,015–

27,627111,735(111,735)–

46,283343

503,751
9,970(111,735)(17)392,015
9,953

Notes: 1. Other includes Yamato Home Convenience Co., Ltd. (lifestyle support services), Yamato System Development Co., Ltd.
(information systems development), and Yamato Autoworks Co., Ltd. (collective vehicle management agent business fortransportation companies).
2. The adjustment of negative 17 million yen of segment profit includes group-wide expenses of negative 3,987 million yen notallocated to each reportable segment (general and administrative expenses of the Company as a pure holding company) andeliminating transactions among segments of 3,970 million yen.
3. An adjustment was made between segment profit and operating profit in the consolidated statement of income.

- 13 -

392,015

II. For the three months ended June 30, 2021
1. Information regarding the amounts of operating revenue and profit or loss by reportable segment(Millions of yen)

Operating revenue
Operating revenue from
customers
Inter-segment operating revenue
or transfers
Total
Segment profit

Other(Note 1)Retail Business
Unit

Corporate
Business Unit

207,002

190,355

22,483419,841–

62,397

8,381

30,740101,519(101,519)–

269,400
992

198,736
8,126

53,224
4,697

521,361
13,816(101,519)(1,082)419,841
12,734

Total

Reconciliation(Note 2)

Amountrecorded inconsolidated
statement ofincome(Note 3)419,841

Notes: 1. Other includes Yamato Home Convenience Co., Ltd. (lifestyle support services), Yamato System Development Co., Ltd.
(information systems development), and Yamato Autoworks Co., Ltd. (collective vehicle management agent business fortransportation companies).
2. The adjustment of negative 1,082 million yen of segment profit includes group-wide expenses of negative 3,162 million yen notallocated to each reportable segment (general and administrative expenses of the Company as a pure holding company) andeliminating transactions among segments of 2,080 million yen.
3. An adjustment was made between segment profit and operating profit in the consolidated statement of income.

2. Disclosure of changes, etc. in reportable segments(Changes in reportable segments)
Effective from the first quarter of the fiscal year under review, the Company has changed its
classification of reportable segments to reflect its transition to a management structure consisting offour Business Divisions (Retail, Corporate, Global SCM, and EC) and four Functional Divisions in
April 2021.
The change mainly involves transition to a dual business unit structure consisting of the “Retail
Business Unit” and the “Corporate Business Unit” based on customer segments, from the previous
six operating segment structure based on categories of business at that time.
The segment information for the three months ended June 30, 2020 has been prepared andpresented according to the new classification of reportable segments.
Application of Accounting Standard for Revenue Recognition, Etc.
The Company has applied the “Accounting Standard for Revenue Recognition, etc.” from the
beginning of the first quarter of the fiscal year under review as stated under “2. Consolidated
Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial statements(Changes in accounting policies),” and has likewise changed its method of calculating businesssegment profit or loss as a result of it having changed its accounting method for revenue recognition.
As a result, for the first quarter of the fiscal year under review, operating revenue and segment profit
in the Retail Business Unit were 113 million yen and 113 million yen lower, respectively, than would
have been the case using the previous method; operating revenue and segment profit in the
Corporate Business Unit were 938 million yen and 981 million yen lower, respectively, and; operating
revenue and segment profit in Other were 1,057 million yen and 198 million yen higher, respectively.
(Changes in depreciation method for property, plant and equipment and changes in useful life)
Effective from the first quarter of the fiscal year under review, the Company has changed to thestraight-line method as their depreciation method for property, plant and equipment (excluding leased
assets), as stated under “2. Consolidated Financial Statements and Significant Notes Thereto, (3)Notes to consolidated financial statements (Changes in accounting policies).” In addition, theCompany has reviewed useful lives of some vehicles. This change will apply into the future.
As a result, for the first quarter of the fiscal year under review, segment profit in the Retail Business
Unit, Corporate Business Unit and Other were 1,918 million yen, 333 million yen, and 84 million yen
higher, respectively, than would have been the case using the previous method.

- 14 -(Important subsequent matters)
Transfer of shares of a subsidiary
At its meeting held on July 20, 2021, the Board of Directors resolved to transfer 51% of the Company’s
holdings of issued common shares of its subsidiary Yamato Home Convenience Co., Ltd. (“YHC”) to ART
CORPORATION. The Company concluded the share transfer agreement on the same day. Effective fromthe fourth quarter of the fiscal year under review, the Company intends to make YHC an equity method
affiliate rather than its current designation as a consolidated subsidiary, given that the Company holds 49%of the voting rights in YHC, down from 100% previously as a result of the transfer of shares.
1.

Reason for the transfer of shares
As a leading company in the moving industry, ART CORPORATION regards moving as a services
sector endeavor and accordingly engages in various services that align with its customer’s desires andhas accordingly gained a very favorable reputation among its customers. In recent years, ART
CORPORATION has expanded its business domain with the aim of serving as a company that
proposes solutions for achieving better lifestyles, above and beyond relocation services.
YHC enables its customers to realize “easy and secure relocation of living space” by offering its “MyMoving” simple and trouble-free service for one-person households and its “Household TA-Q-BIN”
service for delivery of large furniture and home appliances.
In October 2020, the two companies began looking into options for partnership geared to providing
greater convenience to customers in the relocation services market. Upon having considered options
for roughly half a year, management determined that it will be possible to engage in partnershipdrawing on reciprocal customer referrals along with management resources of both companies. We
accordingly determined that it will be possible to provide a variety of services that address diverse
needs of customers ranging from those with minimal belongings to those with substantial belongings
by leveraging the strengths of both companies. We also determined that it will be possible to provide
transportation services that offer higher quality and higher efficiency by drawing on the networks ofboth companies.

2.

Name of the transferee of shares
ART CORPORATION

3.

Date of share transfer
January 17, 2022 (planned)

4.

Name of the subsidiary and its description of business(1) Name
Yamato Home Convenience Co., Ltd.
(2) Description of business Moving business for one-person households, transportation businessfor large household goods, etc.

5.

Number of shares to be transferred and number of shares held after transfer(1) Number of shares to be transferred 9,225 shares(2) Number of shares held after transfer 8,863 shares (49% of voting rights)

6.

Impact on operating performance
The Company is likely to record extraordinary losses of approximately 3.5 billion yen in the fiscal year
ending March 31, 2022, in association with the transfer of consolidated subsidiary shares.

- 15 -

3. Supplementary Information
Operating revenue by segment
For the three months ended For the three months ended
June 30, 2020
June 30, 2021
Change(%)
AmountRatio
Amount
Ratio
Income(Millions of yen)(%)
(Millions of yen)(%)
Transportation income
271,52069.3
261,737
62.3(3.6)
Logistical support income
2,654
0.7
1,820
0.4
(31.4)
Retail Business Unit
Others
6,328
1.6
6,745
1.6
6.6
Eliminations(80,225)(20.5)(63,300)(15.1)(21.1)
Total
200,27751.1
207,002
49.3
3.4
Transportation income
145,51837.1
142,195
33.9(2.3)
Logistical support income
49,652
12.7
58,11713.8
17.0
Corporate Business
Others
5,855
1.5
7,616
1.8
30.1
Unit
Eliminations(27,945)(7.1)(17,574)(4.2)(37.1)
Total
173,08144.2
190,355
45.3
10.0
Transportation income
10,6092.7
12,214
2.9
15.1
Others39,94010.2
44,684
10.6
11.9
Other
Eliminations(31,894)(8.1)(34,415)
(8.2)
7.9
Total
18,655
4.8
22,483
5.4
20.5
Total
392,015100.0
419,841100.0
7.1
Due to the shift of the management structure from the first quarter of the fiscal year under review, the Company discloses the details of
operating revenue by segment instead of operating revenue by business, which was disclosed until the previous fiscal year.
Business segment- 16 -