Financial Statements with
Independent Auditor’s Report
Consolidated Financial Statements for the Year Ended March 31, 2024,
and Independent Auditor’s Report

Yamato Holdings Co., Ltd.

Consolidated Balance Sheet
March 31, 2024
Thousands of
U.S. Dollars (Note 1)

Millions of Yen

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Notes 2.e and 15)

2024

2023

2024

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

LIABILITIES AND EQUITY

2024

2023

2024

¥   10,000¥   10,000$   66,046

6,051

5,415

39,961CURRENT LIABILITIES:¥  195,061¥  185,374$ 1,288,297

Notes and accounts receivable, and contract assets (Notes 15 and 16):

Short-term bank loans (Notes 9 and 15)
Current portion of long-term debt (Notes 9 and 15)  Trade212,095

216,251

1,400,798   Installment (Note 5)

52,78750,509348,637

Trade164,073

160,766

1,083,634   Allowance for doubtful accounts(1,600)(1,474)(10,567)

Other

20,141

10,463133,026

Inventories (Note 6)

2,033

2,580

13,429

Income taxes payable

8,369

16,912

55,276

Prepaid expenses and other current assets

35,97831,407

237,617

Accrued expenses

79,77980,849526,908496,354484,647

3,278,211    Total current assets

Notes and accounts payable:

Deferred profit on installment sales (Notes 5 and 15)

5,164

4,798

34,102Other current liabilities (Notes 11 and 15)

52,32855,556345,607345,905

344,7592,284,560

Long-term debt (Notes 9 and 15)

76,47832,859505,105

Liability for employees’ retirement benefits (Notes 2.k and 10)

103,077

98,295680,783    Total current liabilities
PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
Vehicles

175,187
402,347
192,890

179,811381,219
196,141

1,157,038
2,657,332
1,273,957

133,80851,08617,148

133,69347,257
12,379883,747
337,400
113,253

Others

6,189

5,124

40,879    Total

978,655

955,624

6,463,606(523,901)(512,607)(3,460,146)

454,754443,017

3,003,460

Machinery and equipment
Leased assets (Note 14)
Construction in progress

Accumulated depreciation     Net property, plant and equipment

LONG-TERM LIABILITIES:Deferred tax liabilities (Note 13)
Other long-term liabilities (Note 11)    Total long-term liabilities

Other assets (Notes 2.k and 10)     Total investments and other assets
TOTAL

40,281

32,236

266,039

12,6242,394
36,65323,256
63,27813,173
2,126
38,15022,31864,292

83,37915,812242,080
153,595
417,922

6,301

7,628

41,617

184,787

179,923

1,220,444¥1,135,895¥1,107,587$ 7,502,115

482

3,538

14,762

118,342

198,009146,398

1,307,768

127,235

127,235

840,333

COMMITMENTS LIABILITIES (Note 14)
EQUITY (Notes 12 and 21):
Common stock—authorized, 1,787,541,000 shares in 2024 and 2023;
issued, 360,496,492 shares in 2024 and 379,824,892 shares in 2023

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 7 and 15)
Investments in and advances to unconsolidated subsidiaries and affiliates, net of valuation   allowance of ¥675 million ($4,459 thousand) in 2024 and ¥482 million in 2023 (Note 15)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 13)536
17,918

Capital surplus

36,83936,839243,307

Retained earnings

448,110473,892

2,959,580

Treasury stock—at cost, 17,548,985 shares in 2024 and 17,552,067 shares in 2023

(42,850)(39,836)(283,010)   Unrealized gain on available-for-sale securities

14,3549,280

94,804   Foreign currency translation adjustments

2,908

1,782

19,205   Remeasurements of defined employees’ retirement benefit plans (Notes 2.k and 10)

(840)

1,189

(5,546)585,756

610,3813,868,673

Accumulated other comprehensive income:    Total
Non-controlling interests    Total equity
TOTAL

6,225

6,049

41,114

591,981

616,430

3,909,787¥1,135,895¥1,107,587$7,502,115

See notes to consolidated financial statements.

1

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report2Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

Year Ended March 31, 2024

Year Ended March 31, 2024
Thousands of
U.S. Dollars (Note 1)

Millions of Yen

OPERATING REVENUES (Note 16)

2024

2023

2024

¥1,758,626¥1,800,668$11,614,995

1,664,317

1,687,242

10,992,124

54,24953,341

358,294

1,718,566

1,740,583

11,350,418

40,06060,085

264,577

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

2024

2023

2024

¥37,840¥45,422$249,918

Unrealized gain (loss) on available-for-sale securities

5,064(2,223)33,445

Foreign currency translation adjustments

1,119

2,292

7,390

Remeasurements of defined employees' retirement benefit plans(1,971)

677(13,019)

PROFIT
OTHER COMPREHENSIVE INCOME (Note 17):

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

OTHER INCOME (EXPENSES):Interest and dividend income

COMPREHENSIVE INCOME
1,771

1,915

Interest expense(1,405)(905)(9,279)Gain (loss) on sales and disposal of property, plant and equipment—net

11,838(404)

78,186

Owners of parent

Loss on impairment of long-lived assets (Note 8)(1,423)(1,995)(9,400)Non-controlling interests

Gain on sales of investment securities—net (Note 7)

2,484

1,966

16,404Gain on sales of shares of subsidiaries and affiliates—net

1,377

(54)

(318)

692

27,498¥42,004¥46,114$277,416¥41,799¥46,597$276,061

205

(483)

1,355

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

See notes to consolidated financial statements.

9,097

(96)

(2)

(630)

Loss on investments in investment partnerships

(637)

(257)

(4,207)

Share of loss of entities accounted for using equity method(837)(4,159)(5,529)Provision of allowance for doubtful accounts in unconsolidated subsidiaries and affiliates

(188)

(27)

(1,242)

Green Innovation Fund Project subsidies

480

3,169

(2,728)(18,017)

Dismantlement expenses
Other—net

(48)
4,164

11,699Loss on valuation of investment securities (Note 7)

Payments for retirement and other (Note 10)

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

(754)
1,008

1,353

6,656

   Other income (expenses)—net

11,644(3,269)76,907

PROFIT BEFORE INCOME TAXES

51,70456,816

341,484

91,975

INCOME TAXES (Note 13):
Current

13,92623,018Deferred(62)(11,624)(409)   Total income taxes

13,864

11,39491,566

PROFIT

37,84045,422249,918

PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTSPROFIT ATTRIBUTABLE TO OWNERS OF PARENT

213

(476)

1,410

¥   37,627¥   45,898$   248,508

Yen

U.S. Dollars (Note 1)

2024

2023

2024

¥107.23¥126.64

$0.71

46.00

46.00

0.30

PER SHARE OF COMMON STOCK (Notes 2.q and 18):
Basic earnings
Cash dividends applicable to the year
See notes to consolidated financial statements.

3

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report4Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Year Ended March 31, 2024

Year Ended March 31, 2024

Thousands

Outstanding
Number of
Shares ofCommon Stock

BALANCE,APRIL 1, 2022

366,491

CommonStock¥127,235

CapitalSurplusRetained
Earnings¥36,813 Profit attributable toowners of parent¥464,495

Unrealized
Gain onAvailablefor-Sale
Securities

TreasuryStock¥(49,552)¥11,499

Foreign
Currency
Translation
Adjustments¥ (513)Remeasurementsof Defined
Employees’
Retirement Benefit
Plans¥  56645,898 Cash dividends,¥46 per share Purchase oftreasury stock

Millions of Yen(4,218)Non-controlling
Interests

Total¥590,543¥ 7,691

45,898(16,784)(10,001) Retirement oftreasury stock(19,717) Change in equity
related to transaction
with non-controllingshareholders

2024

2023

2024

¥ 51,704¥ 56,816$  341,484

OPERATING ACTIVITIES:
Total
EquityProfit before income taxes¥598,234
45,898(16,784)(16,784)(10,001)(10,001) Disposal oftreasury stock
19,717

Adjustments for:  Income taxes—paid(21,324)(21,160)(140,837)   Depreciation and amortization

44,431

41,626

293,448   (Gain) loss on sales and disposal of property, plant and equipment—net(11,838)

404(78,186)   Loss on impairment of long-lived assets

1,423

1,995

9,400

   Gain on sales of investment securities—net(2,484)(1,966)(16,404)   Gain on sales of shares of subsidiaries and affiliates—net(1,377)(9,097)   Loss on valuation of investment securities

96

2

630

   Share of loss of entities accounted for using equity method

837

4,159

5,529

1,288

1,234

8,510
3,580

   Changes in assets and liabilities, net of effects from previously consolidated subsidiaries:
26

26 Net change in the year
BALANCE,MARCH 31, 2023

Thousands of
U.S. Dollars (Note 1)

Millions of Yen
Accumulated Other Comprehensive Income(2,219)362,273

127,235

36,839473,892(39,836)

9,280

2,295
1,782

623
1,189

699
610,38126(1,642)
6,049

(943)
616,430    Decrease in notes and accounts receivable    Decrease (increase) in inventories

542

(357)

    Increase (decrease) in notes and accounts payable

1,001(5,259)6,612    Increase in liability for employees' retirement benefits

2,750

4,634

18,165(17,940) Profit attributable toowners of parent

37,627

37,627

37,627 Cash dividends,¥46 per share  Other—net(2,716)

7,826(16,433)(16,433)(16,433)   Total adjustments

12,62933,13883,410    Net cash provided by operating activities

64,333

89,954424,894 Purchase oftreasury stock(19,329)(50,001)(50,001)(50,001) Disposal oftreasury stock

4

11

11

11

 Retirement oftreasury stock(46,976)

46,976 Net change in the year
BALANCE,MARCH 31, 2024

5,074
342,948¥127,235¥36,839¥448,110¥(42,850)¥14,354

1,126¥2,908(2,029)¥  (840)

4,171¥585,756

176¥ 6,225

4,347¥591,981

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

CommonStock

BALANCE,MARCH 31, 2023

$840,333

CapitalSurplus$243,307

Retained
Earnings$3,129,859

Unrealized
Gain onAvailablefor-Sale
Securities

TreasuryStock$(263,096)$61,292

Foreign
Currency
Translation
Adjustments$11,767

Remeasurementsof Defined
Employees’
Retirement Benefit
Plans$  7,850

Non-controlling
Interests

Total$4,031,312$39,955

Total
Equity$4,071,267

248,508

248,508

248,508 Cash dividends,$0.30 per share(108,531)(108,531)(108,531)(330,238)(330,238)(330,238) Disposal oftreasury stock68

17,555

1,391

115,943

Purchases of property, plant and equipment(31,957)(35,435)(211,060)

Proceeds from sales of investment securities

3,238

2,787

21,389Purchases of investment securities(2,369)(1,752)(15,648)

Proceeds from investments in and advances to unconsolidated subsidiaries and affiliates

490

3,068

3,234

 Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation(Note 20)

1,265
1,210

10,639(11,954)

68

68

1,611

(310,256)

310,256 Net change in the year
$840,333

See notes to consolidated financial statements.

$243,307$2,959,580$(283,010)

33,512

7,438(13,396)

27,554

1,159

28,713$94,804$19,205$ (5,546)$3,868,673$41,114$3,909,787

8,356

Payment of loans(1,810)(1,375)

Other(10,459)(19,314)(69,075)(22,436)(49,420)(148,176)

Repayments of short-term debt—net(5,167)(10,690)

Proceeds from long-term debt

40,882   Net cash used in investing activities
FINANCING ACTIVITIES:(34,126)
270,011

Dividends paid

(16,466)(17,151)(108,753)

Purchase of treasury stock—net(50,032)(10,025)(330,440) Proceeds from sales of shares of subsidiaries not resulting in change in scope of consolidation Retirement oftreasury stock
BALANCE,MARCH 31, 2024

Proceeds from sale of property, plant and equipment

Collection of loans Profit attributable toowners of parent Purchase oftreasury stock

INVESTING ACTIVITIES:

19 Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Other   Net cash used in financing activities

(778)
5

7

33

(30,778)(38,618)(203,275)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS

357

706

2,357

NET INCREASE IN CASH AND CASH EQUIVALENTS

11,4762,622

75,800CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

183,226

180,604

1,210,128

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.e)

¥194,702¥183,226$1,285,928¥  8,702¥ 11,386$   57,472

9,589

11,797

63,332

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Newly recorded assets related to lease transactions
Newly recorded liabilities related to lease transactions
See notes to consolidated financial statements.

5

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report6Notes to Consolidated Financial Statements
Year Ended March 31, 2024

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2023 consolidated financial statements to conform them to the classifications and presentations used in 2024.
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 ¥151.41 to $1, the approximate rate of exchange at March 31, 2024. Such translations should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.

in an equity instrument for the difference between the acquisition cost and selling price, and recording impairment loss
through profit or loss for other-than-temporary declines in the fair value of an investment in an equity instrument, where aforeign 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 be madeto conform the affiliate’s accounting policies for similar transactions and events under similar circumstances to those of theparent company when the affiliate’s financial statements are used in applying the equity method, unless it is impracticable todetermine such adjustments. In addition, financial statements prepared by foreign affiliated companies in accordance witheither International Financial Reporting Standards or generally accepted accounting principles in the United States of America
tentatively may be used in applying the equity method if the following items are adjusted so that profit is accounted for inaccordance 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 a gain or loss through profit or loss on thesale of an investment in an equity instrument for the difference between the acquisition cost and selling price, and recording

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2024, include the accounts of the Company and its
27 (29 in 2023) significant subsidiaries (together, the “Group”).
Effective from the fiscal year ended March 31, 2024, Yamato Staff Supply Co., Ltd. and Express Network., Ltd. have also
been excluded from the scope of consolidation due to the conclusion of liquidation and partial transfer of its shares,
respectively.
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able to exercise
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 notsignificant to the consolidated financial statements, have not been consolidated with the Company.
There were 30 (24 in 2023) affiliates accounted for by the equity method.
Effective from the fiscal year ended March 31, 2024, Yamato Staff Supply Co., Ltd. has been excluded from the scope of
consolidation due to partial transfer of its shares and has been included in the scope of the equity method. In addition, ALP
Capital Sdn Bhd. and four other companies have been 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 at cost,less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If theequity 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,” the accounting
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 state-

impairment loss through profit or loss for other-than-temporary declines in 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 aninvestment in an equity instrument.
d. Revenue Recognition—Principal performance obligations in the principal businesses relating to revenues recognized fromcontracts with customers in the Group and the normal timing of satisfaction of performance obligation (the normal timing ofrecognizing 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 a service
to collect and deliver cargoes at the customer’s request based on a contract with the customer, and revenue from this service isrecognized in accordance with satisfaction of performance obligations measured by the progress of delivery, because othercompanies are not required to perform the transportation process that has already been performed, even if delivery to thedesignated 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 to the entire
supply chain of its customers. The Group provides logistics support services, which include the collection, storage, packing, anddelivery of cargo based on contracts with customers, and recognizes each contractually agreed-upon process as a performanceobligation, 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 are readily 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 shortterm 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:

ments prepared by foreign subsidiaries in accordance with either International Financial Reporting 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 is accounted for in accordance withJapanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or lossof pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costs

Thousands of
U.S. Dollars

Millions of Yen

Cash and cash equivalents presented in the consolidated balance sheet
Time deposits due beyond three months
Cash and cash equivalents presented in the consolidated statement of cash flows

2024

2023

¥195,061¥185,3742024$1,288,297(359)(2,148)(2,369)¥194,702¥183,226$1,285,928

of R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties andincorporation of the cost model accounting; and (e) recording a gain or loss through profit or loss on the sale of an investment

7

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report8Notes to Consolidated Financial Statements
f. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.

l. Asset Retirement Obligations —An asset retirement obligation is recorded for a legal obligation imposed either by law orcontract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset and is

g. Investment Securities—Investment securities are classified and accounted for, depending on management’s intent, asassociated with the retirement of such tangible fixed asset.

follows: (1) trading securities, which are held for the purpose of earning capital gains in near term, are reported at fair value,

The asset retirement obligation is recognized as the sum of the discounted cash flows required for future asset retirement

and the related unrealized gains and losses are included in earnings; (2) held-to-maturity debt securities, for which there is aand is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate

positive intent and ability to hold to maturity, are reported at amortized cost; and (3) available-for-sale securities, which are notof the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability shouldclassified as either of the aforementioned securities, are reported at fair value, with unrealized gains and losses, net of appli-

be recognized when a reasonable estimate of the asset retirement obligation can be made. Upon initial recognition of a liability

cable taxes, reported in a separate component of equity. The Group had no trading securities at March 31, 2024 and 2023.

for an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed

Equity securities with no market price and investments in capital are stated at cost determined by the moving-averageasset by the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over
the remaining useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revi-

method.
Investments in the limited partnership for investment partnerships and similar partnerships, which are deemed to be securities pursuant to Article 2, Paragraph 2 of the Financial Instruments and Exchange Act are stated at net amount of equity inter-sions to the timing or the amount of the original estimate of undiscounted cash flows are reflected as reconciliation to thecarrying amount of the liability and the capitalized amount of the related asset retirement cost.

est in the partnership based on the most recent financial statements available according to the reporting date stipulated in them. Leases —For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations in thepartnership agreement.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge tobalance sheet.
For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized as lease

income.

receivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee are recognized ash. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant andinvestments in leases.

equipment excluding leased assets is computed by the straight-line method. Depreciation of leased assets is computed by thestraight-line method over the lease period with no residual value carried.
The range of useful lives is principally as follows:n. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future
tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferredtaxes are measured by applying currently enacted income tax rates to the temporary differences.

Buildings and structures

7–60 years

Vehicles

2–7 years

The Company and certain domestic consolidated subsidiaries have applied the Japanese Group Relief System. In addition,

Machinery and equipment

2–20 years

the Company has adopted the ASBJ PITF No. 42, “Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System” with respect to the accounting treatment and disclosure related to tax effect accounting for national and local

Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.

corporate income taxes.

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

rencies are translated into Japanese yen at the exchange rates at the balance sheet date.

ing amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from thecontinued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by

p. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are trans-

which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows fromlated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at thethe continued use and eventual disposition of the asset or the net selling price at disposition.

historical rate. Differences arising from such translation are shown as “Foreign currency translation adjustments” under accumulated other comprehensive income in a separate component of equity.

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 value carried.
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 byplans and unfunded retirement benefit plans. In addition, defined contribution retirement plans were introduced along withthe 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 areamortized 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 effects,
and funded status is recognized as a liability or asset.

9

Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current
exchange rates as of the balance sheet date.

Financial Statements with Independent Auditor’s Report

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 andbonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, netof tax, and full exercise of outstanding warrants.
For the years ended March 31, 2024 and 2023, 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 applicable to therespective fiscal years, including dividends to be paid after the end of the year.

Financial Statements with Independent Auditor’s Report10Notes to Consolidated Financial Statementsr. Accounting Changes and Error Corrections—Under ASBJ Statement No. 24, “Accounting Standard for Accounting Policy
Disclosures, Accounting Changes and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for
Accounting Policy Disclosures, Accounting Changes and Error Corrections,” accounting treatments are required as follows:(1) Changes in Accounting Policies—When a new accounting policy is applied following revision of an accounting standard,
the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provisions, in whichcase the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—When the presentation offinancial 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 thechange affects that period only, and is accounted for prospectively if the change affects both the period of the change andfuture periods. (4) Corrections of Prior-Period Errors—When an error in prior-period financial statements is discovered, thosestatements are restated.

mance-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 theconnection between Officers’ remuneration and performance and share value of the Company, and raise their motivation to
make contributions to increase the Company’s long-term performance and corporate value by sharing not only the benefits ofa 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 and cash equivalent
to the market value of the Company’s shares (“Shares of the Company”) through the trust in accordance with “Regulation for
Benefit of Shares to Officers” established by the Company. As a general rule, Officers shall be entitled to receive Shares of theCompany at the time of retirement.
The Company applies the same accounting method as stipulated in the ASBJ PITF No.30, “Practical Solution on Transactionsof 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, 2024 and 2023, were ¥1,366 million ($9,025 thousand) , 480,200 shares, and ¥1,376 million and483,700 shares, respectively.

3. SIGNIFICANT ACCOUNTING ESTIMATEAt the held on the previous consolidated fiscal year, the Board of Directors of the Company approved to liquidate our consolidated subsidiaries, YAMATO ASIA PTE. LTD. and YAMATO INVESTMENT (HONG KONG) LIMITED. Currently, preparations areunderway for their liquidation process.
Reasons for dissolution and liquidation
The Company decided to liquidate YAMATO ASIA PTE. LTD. and YAMATO INVESTMENT (HONG KONG) LIMITED. The Company
judged that reorganizing the current management structure based on previous overseas governance by abolishing intermediateholding companies was necessary. The purpose of liquidation is to reconstruct an appropriate governance framework that

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
YAMATO ASIA PTE. LTD.
Extraordinary Meeting of Shareholders (companies involved):

September 2024 (planned)

Conclusion of liquidation:			

September 2025 (planned)

YAMATO INVESTMENT (HONG KONG) LIMITED
Extraordinary Meeting of Shareholders (companies involved):

July 2024 (planned)

Conclusion of liquidation:			

December 2024 (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

Intangible assets

Dissolution and Liquidation of Subsidiariesaligns with business scale, characteristics, country and region-specific factors, and the growth stage of overseas business.

s. Performance-Based Share Remuneration Plan “Board Benefit Trust (BBT)”—The Company has introduced a perfor-

Property, plant and equipment

4. ADDITIONAL INFORMATION

2024

Net assets:¥8,112 million ($53,578 thousand)Total assets:¥8,124 million ($53,655 thousand)Total liabilities: ¥12 million ($77 thousand)

2024

2023

¥454,754¥443,017$3,003,460

Net assets:¥10,188 million ($67,289 thousand)

41,21643,759272,211

Total assets:¥10,193 million ($67,318 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 torecognize 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 accounting classification and the unit
used for investment decision making. In Yamato Transport Co., Ltd., due to a change in the division in management accounting, the company has reviewed the grouping, and grouped based on the business segment unit from the customer segment
unit, and assets associated with the Head Office division were classified as common assets. The above property, plant and

YAMATO INVESTMENT (HONG KONG) LIMITED

Total liabilities: ¥5 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 is immaterial.
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.

equipment and intangible assets, the Group identifies signs of impairment and determines whether impairment losses should
be recognized for each group of such assets. However, the various figures used in these considerations may be affected byuncertain future economic conditions and the company’s business conditions, such as trends in TA-Q-BIN unit prices and TA-QBIN delivery volumes, resource and energy prices, and costs due to changes in the external environment such as hourly wage. In
addition, these assumptions 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.

11

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report12Notes to Consolidated Financial Statements
5. INSTALLMENT RECEIVABLES

Millions of Yen
2023

Sales recorded on the installment basis were 0.2% of operating revenues in both 2024 and 2023.

Cost

Annual maturities of installment receivables at March 31, 2024 and related amortization of deferred profit on installment
Millions of Yen
Receivables  Equity securities

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

Receivables

Deferred Profit on
Installment Sales

2025¥21,411¥1,903$141,411$12,568

2026

10,5591,132

69,740

7,476

2027

6,690

659

44,186

4,351

2028

4,090

412

27,014

2,719

2029

2,564

273

16,934

1,8042030 and thereafter

7,473

785

49,352

5,184¥52,787¥5,164$348,637$34,102

Total

Unrealized Losses

Fair Value¥10,807¥10,448¥254¥21,001¥10,807¥10,448¥254¥21,001

Securities classified as:
Available-for-sale:sales are as follows:Year Ending March 31

Unrealized Gains  Other
Total

Thousands of U.S. Dollars
2024
Cost

Unrealized Gains

Unrealized Losses$103,865$  899Fair Value

Securities classified as:
Available-for-sale:  Equity securities  Other
Total$66,479
1,430$67,909$103,865$169,445

325

1,105

$1,224$170,550

Information for available-for-sale securities, which were sold during the years ended March 31, 2024 and 2023, is as follows:

6. INVENTORIESMillions of Yen

Inventories at March 31, 2024 and 2023, consisted of the following:

March 31, 2024
Thousands of
U.S. Dollars

Millions of Yen
2024

2024

2023

Merchandise¥   97¥  169$   642Work in process

213

322

1,405

Proceeds

Realized Gains

Realized Losses¥2,484¥—

Available-for-sale:
Equity securities¥3,238Millions of Yen
March 31, 2023

Raw materials and supplies

1,723

2,089

11,382Available-for-sale:Total¥2,033¥2,580$13,429

Equity securities

Proceeds¥2,787

Realized Gains

Realized Losses¥1,970¥4

Thousands of U.S. Dollars
March 31, 2024

Proceeds

Realized Gains

Realized Losses$16,404$—

Available-for-sale:

7. INVESTMENT SECURITIES

Equity securities$21,389

Investment securities as of March 31, 2024 and 2023, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2024

2023

2024

Loss on valuation of available-for-sale securities for the years ended March 31, 2024 and 2023, were ¥96 million ($630
thousand) and ¥2 million, respectively.

Non-current:
Marketable equity securities¥24,733¥21,001$163,352

Non-marketable equity securities

6,000

3,759

39,626

Other

9,548

7,476

63,061¥40,281¥32,236$266,039

Total

Information regarding each category of the securities classified as available-for-sale at March 31, 2024 and 2023, is as follows:

Unrealized Losses

Fair Value

Securities classified as:  Other
Total

13

Financial Statements with Independent Auditor’s Report

impairment loss of ¥1,423 million ($9,400 thousand) as other expense for the asset groups of Kansai Gateway of Yamato
Transport Co., Ltd. and 6 other asset groups for the year ended March 31, 2024, and ¥1,995 million as other expense for thethe 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

Available-for-sale:  Equity securities

no future use, continuous operating losses of those units or significant declines in market prices, the Group recognized an

ended March 31, 2023. The carrying amounts of the relevant asset groups were written down to their recoverable amounts. In

2024
Unrealized GainsThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2024 and 2023. Upon review, due toasset groups of Credit Card Payment Business Unit of Yamato Credit Finance Co., Ltd. and 4 other asset groups for the year

Millions of Yen
Cost

8. LONG-LIVED ASSETS¥10,066¥15,726

216¥10,282¥15,726¥136¥25,656

49

167

¥185

¥25,823

assets, and posted land prices. In the case where the recoverable amounts were measured at their value in use, the discountrates used for computation of present value of future cash flows for the years ended March 31, 2024 and 2023, were mainly
6.00% and 5.29%, respectively.

Financial Statements with Independent Auditor’s Report14Notes to Consolidated Financial Statements
9.

BANK LOANS AND LONG-TERM DEBT

The changes in plan assets for the years ended March 31, 2024 and 2023, were as follows:

Short-term bank loans at March 31, 2024 and 2023, consisted of notes to banks and bank overdrafts. The weighted-averageinterest rates applicable to the bank loans as of March 31, 2024 and 2023, were approximately 0.126% and 0.047%,
Balance at beginning of year

respectively.
Long-term debt at March 31, 2024 and 2023, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2024

574

3,762

657

3,985

Contributions from the employer
Retirement benefits paid
Decrease due to change in scope of consolidation

0.570% loans from banks due in December 2028

10,00066,0460.448% loans from syndicate group due in December 2028

10,000

Lease obligations

41,529Unsecured 0.310% bonds (with inter-bond pari passu clause) due in July 2028

20,000Less current portion
Total

Balance at end of year

66,04638,274(11,814)¥57,034$371,664(957)¥56,274

545,066

and plan assets as of March 31, 2024 and 2023, were as follows:(5,415)(39,961)$505,105

2024

2023

¥ 10,387¥ 11,802$  68,600(56,274)(57,034)(371,664)(45,887)(45,232)(303,064)

Defined benefit obligation of unfunded plan

148,964

143,507983,847

Net liability arising from defined benefit obligation¥103,077¥ 98,275$ 680,783

Plan assets

Annual maturities of long-term debt at March 31, 2024, are as follows:
Thousands of
U.S. Dollars$ 39,961

2026

4,957

32,737

2027

3,785

25,000

2028

2,606

17,2102029

42,487

280,6092030 and thereafter

22,643

149,549

Total¥82,529$545,066

Thousands of
U.S. Dollars

Millions of Yen

Defined benefit obligation of funded plan

¥ 6,051(1,550)(145)

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation¥32,8592025(1,789)132,092(6,051)Millions of Yen

2

274,278¥76,478

Year Ending March 31$376,688

570

2024

82,5292024¥57,351604$  6,604

Total

2023

¥57,034

Expected return on plan assets¥ 1,000¥38,2742024

Actuarial gain arising during the year

0.300% Fiscal Investment and Loan Program due 2024 to 2029

2023

Thousands of
U.S. Dollars

Millions of Yen

2024

Thousands of
U.S. Dollars

Millions of Yen

Liability for employees' retirement benefits

2024

2023

2024

¥103,077¥98,295$680,783¥103,077¥98,275

Asset for employees' retirement benefits
Net liability arising from defined benefit obligation(20)$680,783

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

10. RETIREMENT AND PENSION PLANS

The components of net periodic benefit costs for the years ended March 31, 2024 and 2023, were as follows:

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

2024

2023

2024

¥15,272¥14,233$100,867

other factors. Such retirement benefits are made in the form of a lump-sum severance payment from the Company or from theService costconsolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if the termination isInterest cost

155

151

1,021

involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages

Expected return on plan assets

(570)

(574)

(3,762)exceeding the standard retirement age.

Recognized actuarial (gain) loss

(784)

493

(5,177)

Others

(39)

52

(257)

¥14,034¥14,355$ 92,692(1) Defined Benefit Retirement Plans
The changes in defined benefit obligation for the years ended March 31, 2024 and 2023, were as follows:

Net periodic benefit costs
Thousands of
U.S. Dollars

Millions of Yen
2024

2023

¥155,309¥151,477$1,025,753

Service cost

15,272

14,233

100,867Interest cost

155

151

1,021

Balance at beginning of year

Actuarial loss arising during the year
Retirement benefits paid
Decrease due to change in scope of consolidation
Balance at end of year

15

Thousands of
U.S. Dollars

Millions of Yen

entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, and certain

Financial Statements with Independent Auditor’s Report2024

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined benefit retirement plans for the years ended March 31, 2024 and 2023, were as follows:

2024

2,635

169

17,405

Actuarial (loss) gain

(13,891)(10,721)(91,745)

Total

(129)
¥159,351

Thousands of
U.S. Dollars

Millions of Yen
2023

2024

¥(2,846)¥981$(18,795)¥(2,846)¥981$(18,795)(854)¥155,309$1,052,447

Financial Statements with Independent Auditor’s Report

16

Notes to Consolidated Financial Statements
Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect of defined
benefit retirement plans as of March 31, 2024 and 2023, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2024

The changes in asset retirement obligations for the years ended March 31, 2024 and 2023, were as follows:

Unrecognized actuarial (loss) gain¥(1,487)¥1,387$(9,822)

Total¥(1,487)¥1,387$(9,822)

Plan assets as of March 31, 2024 and 2023, consisted of the following:
2023

General accounts

58%

58%

Debt investments

22

22

Others

20

20

Total

100%

100%

Thousands of
U.S. Dollars

Millions of Yen

2024

2023

2024

11. ASSET RETIREMENT OBLIGATIONS

2024

Balance at beginning of year

2024

2023

¥ 9,609¥9,928$63,460

Additional provisions associated with the acquisition of property, plant andequipment

994

23

6,565

Reconciliation associated with passage of time

108

104

711

Reconciliation associated with changes in accounting estimates

33

(7)

219

(203)

(449)

(1,339)Reduction associated with settlement of asset retirement obligations
OthersBalance at end of year

6

10

42

¥10,547¥9,609$69,658

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 an increase in the asset retirement obligation for the year ended March 31, 2024, by ¥33 million

Assumptions used for the years ended March 31, 2024 and 2023, were set forth as follows:
2024($219 thousand), and a decrease for the year ended March 31, 2023, by ¥7 million, respectively.
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

12. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in therespective assets that make up investments of plan assets, and market trends.

Companies Act that affect financial and accounting matters are summarized below:(2) Defined Contribution Retirement Plans
The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2024 and2023, were ¥11,221 million ($74,112 thousand) and ¥10,796 million, respectively.

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 the directors beingprescribed 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 ofincorporation. The Company meets all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to a certain
limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends
or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but theamount of net assets after dividends must be maintained at no less than ¥3 million.

(3) Information about Payments for Retirement and OtherIn June 2023, Yamato Transport Co., Ltd. and Japan Post Co., Ltd. signed a basic agreement on collaboration to promote sustainable logistics services by contributing to solving various social issues related to logistics.
“Payment for Retirement and other” is a payment for consolation money and honoraria due to the termination of contracts
with part-time employees engaged in the existing Nekopos and Kuroneko DM-bin and sole proprietors to whom delivery services were outsourced, following the start of the Kuroneko Yu-Packet and Kuroneko Yu-Mail, which are mailboxing services
based on this basic agreement.

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 componentof retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged
upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capital equals 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 capitalsurplus, and retained earnings can be transferred among the accounts within equity under certain conditions upon resolutionof 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 theshareholders, which is determined by a specific formula. The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity.

17

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report18

Notes to Consolidated Financial Statements
13. INCOME TAXES

Thousands of U.S. Dollars

The Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggregate,
resulted in a normal effective statutory tax rate of 30.6% for the years ended March 31, 2024 and 2023.

Year Ending March 31

The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets andliabilities at March 31, 2024 and 2023, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2024

2024

2023

Deferred tax assets:  Accrued expenses¥  9,837¥ 11,197$  64,967   Legal welfare expense

1,660

1,881

10,963  Enterprise tax

1,412

1,906

9,325

   Allowance for doubtful accounts

570

526

3,766

   Tax loss carryforwards

4,445

4,257

29,355   Liability for employees' retirement benefits

31,70330,777

209,388   Loss on valuation of land

16,353

20,485108,004   Loss on impairment of long-lived assets

4,556

4,242

30,093   Loss on valuation of investment securities

867

920

5,728

   Investments in subsidiaries and affiliates

11,535

10,62876,184  Unrealized profit

3,928

3,944

25,943

216

394

1,425

   Loss on valuation of telephone subscription rights  Other

10,396

9,428

68,663   Total tax loss carryforwards and temporary differences

97,478100,585

643,804   Less valuation allowance for tax loss carryforwards(4,445)(4,257)(29,355)   Less valuation allowance for temporary differences(20,425)(24,585)(134,902)   Total valuation allowance(24,870)(28,842)(164,257)   Deferred tax assets¥72,608¥ 71,743$ 479,547  Other2025$   349$   (349)

2026

249

(249)

2027

18

(18)

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

$—

2028
2029

3,327

(3,327)2030 and thereafter

25,412(25,412)

Total$29,355$(31,884)$—

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, 2024, with the corresponding figures for 2023 was as follows:
2024

2023

Normal effective statutory tax rate

30.6%

Per capita levy of local taxes

4.9

4.7

Difference of tax rates for foreign subsidiaries

(0.3)

(0.1)
(17.0)

30.6%

Valuation allowance(9.4)

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

0.5

2.2

Other—net

0.5

(0.3)

Actual effective tax rate

26.8%

20.1%

14. LEASESThe Group leases certain buildings, cargo aircrafts, computer equipment and other assets as the lessee.
Future rental payments under non-cancelable operating leases at March 31, 2024 and 2023, were as follows:

Deferred tax liabilities:   Unrealized gain on available-for-sale securities

Less Valuation
Allowances for
Tax Loss
Carryforwards

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards¥ (4,587)¥ (2,703)$ (30,299)

Thousands of
U.S. Dollars

Millions of Yen(5,279)(5,230)(34,864)

2024

2023

2024

   Deferred tax liabilities¥ (9,866)¥ (7,933)$ (65,163)

Due within one year

¥ 14,878¥ 9,785$ 98,262

Deferred tax assets—net¥ 62,742¥ 63,810$ 414,384

Due after one year

96,484

44,460637,238¥111,362¥54,245$735,500

Total

The expiration of tax loss carryforwards, the related valuation allowances and the resulting net deferred tax assets as of March
31, 2024, are as follows:

15. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Millions of Yen

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

2025¥   53¥   (53)

2026

37

(37)

2027

3

(3)

504

(504)

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

¥—

2028
2029

19

2030 and thereafter

3,848(3,848)

Total¥4,445¥(4,445)

Financial Statements with Independent Auditor’s Report¥—(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 businessbased 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 orcapital 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.
Short-term bank loans and long-term bank loans are mainly related to capital expenditures. Bank loans are mainly fixedinterest rate loans.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as throughfund settlement, bookkeeping, monitoring of the balances outstanding, and managing cash flows.

Financial Statements with Independent Auditor’s Report20Notes to Consolidated Financial Statements(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, 2024 and 2023, were as follows:
Carrying Amount

Fair Value

Difference

Assets:Trade notes and accounts receivable, and contract assets   Allowance for doubtful accounts

March 31, 2024 and 2023, were ¥5,158 million ($34,067 thousand) and ¥3,840 million, respectively, and the amount of these¥211,812¥   2052,787(1,003)   Deferred profit on installment sales(5,164)

Investments in partnerships and other similar entities that are recorded on the consolidated balance sheet at net amount of

46,62050,95325,82325,823

Shares of affiliates

3,765

7,206

Short-term loans

10,00010,000Long-term loans

21,00020,984

4,333
3,441

Liabilities:

Fair Value

Trade notes and accounts payable are omitted because most of them are due within one year and their carrying amounts
approximate fair value.

Millions of Yen
Due in One Yearor Less

Due after One Yearthrough Five Years

Cash and cash equivalents¥195,061¥      —

Trade notes and accounts receivable, and contract assets

212,06134

March 31, 2024
Difference

Installment sales receivable

23,903

7,473¥23,937¥7,473

Due in One Yearor Less

Due after One Yearthrough Five Years

Cash and cash equivalents¥185,374¥      —

4,367

Trade notes and accounts receivable, and contract assets

216,21338

Installment sales receivable

22,182

23,546

4,781

1,496

Total

¥423,769¥23,584¥4,781¥   38Millions of Yen

50,509   Allowance for doubtful accounts(942)   Deferred profit on installment sales(4,798)March 31, 2023

44,76949,136

Available-for-sale securities

21,001

21,001

Shares of affiliates

4,309

5,805

¥     —

21,411

Total

(261)
¥216,028

Due after
Five Years¥428,533¥216,251
215,990

Installment sales receivableance sheet at March 31, 2024 and 2023, were ¥9,300 million ($61,423 thousand) and ¥7,395 million, respectively.

(16)

Assets:Trade notes and accounts receivable, and contract assets

equity interest are not included. The amount of these investments recorded as investment securities on the consolidated bal-(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities

Millions of Yen
Carrying Amountfinancial instruments recorded as investments in unconsolidated subsidiaries and affiliates on the consolidated balance sheet atMarch 31, 2024 and 2023, were ¥6,822 million ($45,056 thousand) and ¥6,213 million, respectively.

Available-for-sale securities   Allowance for doubtful accounts

on installment sales.
affiliates. The amount of these financial instruments recorded as investment securities on the consolidated balance sheet at(303)   Allowance for doubtful accounts

March 31, 2023

Trade notes and accounts receivable, and contract assets are presented after deducting allowances for doubtful accounts
set up for trade notes and accounts receivable, and contract assets not settled in a short period of time.

Equity securities with no market price and investments in capital are not included in available-for-sale securities or shares of¥212,095
211,792

Installment sales receivablemate fair value.

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

Millions of Yen
March 31, 2024

Cash and cash equivalents are omitted because they are settled in a short period of time and their carrying amounts approxi-

Due after
Five Years¥     —

Thousands of U.S. Dollars

Liabilities:
Short-term loans

10,00010,000Long-term loans
Thousands of U.S. Dollars
March 31, 2024

Carrying Amount

Fair Value

Trade notes and accounts receivable, and contract assets

Cash and cash equivalents$1,288,297$       
—Trade notes and accounts receivable, and contract assets

1,400,576

222

Total

Due after
Five Years$      —

141,411

157,874

49,352$2,830,284$158,096$49,352$1,400,798(1,998)
1,398,800

Installment sales receivable

Due after One Yearthrough Five Years

Installment sales receivable
Difference

Assets:   Allowance for doubtful accounts

March 31, 2024

Due in One Yearor Less$1,398,933$   133

348,637(5) Maturity Analysis for Long-Term Loans
Year Ending March 31

Millions of Yen

Thousands of
U.S. Dollars   Allowance for doubtful accounts(6,629)2025¥   182$  1,200   Deferred profit on installment sales(34,102)

2026

182

1,201

2027

182

1,201

2028

182

1,201

307,906

336,521

Available-for-sale securities

170,550

170,550

Shares of affiliates

24,86547,591

28,61522,7252029

20,272

133,893

Total¥21,000$138,696

Liabilities:

21

Short-term loans

66,046

66,046Long-term loans

138,696

138,592

Financial Statements with Independent Auditor’s Report(104)

Financial Statements with Independent Auditor’s Report22Notes to Consolidated Financial Statements(6) 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 materiality of
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.

Millions of Yen
Fair Value
March 31, 2023

Trade notes and accounts receivable, and contract assets

Level 1¥    —

Installment sales receivable
Equity securities

49,136
5,805

Level 3

Other
Total assets

March 31, 2023

¥—

Total

¥—

¥25,656

167

167¥25,823

Level 1¥—¥—

¥25,823¥—¥270,969

Short-term loans¥    —¥ 10,000¥—¥ 10,000¥    —¥ 10,000¥—¥ 10,000$—$1,398,933

Long-term loans

Level 1

Trade notes and accounts receivable, and contract assets$     —

Installment sales receivable

Level 2

Level 3

$1,398,933

Total

336,521336,521

Shares of affiliates:
Equity securities

47,59147,591$ 47,591$1,735,454$—$1,783,045

Millions of Yen

Short-term loans$     —$   66,046$—$   66,046

Fair Value

Long-term loans

Level 2

Level 3

Total

¥21,001¥—¥—¥21,001¥21,001¥—¥—¥21,001

Other
Total assets

March 31, 2024

Total assets

Available-for-sale securities:
Equity securities

5,805¥265,164

Fair Value

Available-for-sale securities:¥25,656

49,136

Thousands of U.S. Dollars

Fair Value

Equity securities¥216,028¥ 5,805

Millions of Yen
Level 2

Total¥—

Total assets

Total liabilities

Level 1

Level 3

¥216,028

Shares of affiliates:

Financial instruments recorded on the consolidated balance sheet at fair value

March 31, 2024

Level 2

Total liabilities

138,592$     —$  204,638

138,592$—$  204,638

Available-for-sale securities, shares of affiliates and otherMarketable equity securities are valued using the market prices. Since marketable equity securities are traded in active markets,their fair value is classified as Level 1 fair value. Since other are equity warrants traded in active markets, their fair value is classified as Level 1 fair value.

Thousands of U.S. Dollars
Fair Value
March 31, 2024

Level 1

Level 2

Level 3

Total

Available-for-sale securities:
Equity securities
Other
Total assets$169,445

$—

$—

1,105

$169,445
1,105$170,550$—$—$170,550

Trade notes and accounts receivable, and contract assets

The fair value of these assets is determined using the discounted present value method based on the amount of the receivable,
the period to maturity and the interest rate that takes into account credit risk for each receivable classified by certain time
periods and is classified as Level 2 fair value.
Installment sales receivable

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

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

the receivable, the period to maturity and the interest rate that takes into account credit risk for each receivable classified byMillions of Yen
Fair Value
March 31, 2024

Trade notes and accounts receivable, and contract assets

Level 1¥    —

Installment sales receivable

Level 2

¥211,812

Level 3

Total¥—

50,953¥211,812
50,953

Shares of affiliates:
Equity securities

7,206

Total assets¥7,206¥262,765¥—¥269,971

Short-term loans¥    —¥ 10,000¥—¥ 10,000

Long-term loans
Total liabilities

23

7,206

Financial Statements with Independent Auditor’s Report

20,984¥    —¥ 30,984

certain time periods and is classified as Level 2 fair value.
Short-term loans and long-term loans

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

20,984¥—¥ 30,984

Financial Statements with Independent Auditor’s Report24Notes to Consolidated Financial Statements
16. REVENUE RECOGNITION(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(1) Information about Disaggregated Revenues from Contracts with Customers
Millions of Yen
2024

Transportation income
Logistical support income
Others
Revenues from contracts with customers

RetailBusiness Unit

Corporate
Business Unit

¥1,181,252¥  627,096

3,640

226,522

Balance of receivables, contract assets and contract liabilities from contracts with customers
Other¥  22,836

Total
Operating revenues by reportable segments
Intersegment revenues or transfers
Operating revenues from external customers¥1,831,184
230,162

28,914

31,843

137,728

198,485

1,213,806

885,461

160,564

2,259,831

3,387

3,387

Other revenues
Internal segment revenues or transfers

Total

1,213,806

885,461

163,951

2,263,218(3,083)(48,130)(6,603)(57,816)

1,210,723

837,331

157,348

2,205,402(332,775)(13,234)(100,767)(446,776)¥  877,948¥  824,097¥  56,581¥1,758,626

Millions of Yen

Transportation income
Logistical support income
Others
Revenues from contracts with customers

Corporate
Business Unit

¥1,191,265¥  617,221

3,352

259,526

Total¥  24,617

Total¥1,833,103
262,878

25,85833,358

151,751

210,967

1,220,475

910,105

176,368

2,306,948

3,437

3,437

1,220,475

910,105

179,805

2,310,385(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)¥  894,574¥  846,053¥  60,041¥1,800,668

Internal segment revenues or transfers

Operating revenues from external customers

2024

Logistical support income
Others
Revenues from contracts with customers
Total
Internal segment revenues or transfers
Operating revenues by reportable segments$1,225,476

Receivables from contracts with customers, end of fiscal year

183,854

185,549

1,214,280

4,794

4,689

31,660Contract assets, beginning of fiscal year

2024

Contract assets, end of fiscal year

4,552

4,794

30,064Contract liabilities, beginning of fiscal year

14,264

12,887

94,205Contract liabilities, end of fiscal year

13,432

14,26488,710Contract assets are mainly recognized in TA-Q-BIN transactions and are recognized based on the estimated revenue from theprogress of deliveries up to the end of the fiscal year. Contract assets are reclassified to receivables from contracts with custom-

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, 2024 and 2023, the amounts included in the
opening balance of contract liabilities were ¥11,282 million ($74,515 thousand) and ¥10,427 million, respectively.
The amounts of revenue recognized in the fiscal years ended March 31, 2024 and 2023, from performance obligations
satisfied in prior periods were immaterial.
Transaction prices allocated to remaining performance obligations

The Group applies the practical expedient in noting transaction prices allocated to the remaining performance obligations anddoes not include performance obligations with original expected contractual terms of one year or less and performance obligations for which the entity is entitled to receive consideration directly corresponding to the value to the customer of the portionof the obligation that has been performed by the entity to date. As a result, there were no significant performance obligations
The performance obligations with original expected contractual terms of one year or less mainly relate to TA-Q-BIN transac-

RetailBusiness Unit

Corporate
Business Unit

Other

Total

$ 7,801,676$4,141,708$  150,820$12,094,204

24,041

1,496,085

1,520,126

190,964

210,307909,639

1,310,910

8,016,681

5,848,100

1,060,459

14,925,240

22,371

22,371

8,016,681

5,848,100

1,082,830

14,947,611

Other revenues¥188,005

that should have been noted as the transaction price allocated to the remaining performance obligations.

Thousands of U.S. Dollars

Transportation income

2023¥185,549

Contract liabilities mainly relate to advances received from customers who have subscribed to the Kuroneko Member
Other

Other revenues

2024

Receivables from contracts with customers, beginning of fiscal year

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

2023
RetailBusiness Unit

Thousands of
U.S. Dollars

Millions of Yen(20,358)(317,876)(43,613)(381,847)

7,996,323

5,530,224

1,039,217

14,565,764

Intersegment revenues or transfers(2,197,841)(87,408)(665,520)(2,950,769)

Operating revenues from external customers$ 5,798,482$5,442,816$  373,697$11,614,995

tions in the Retail Business Unit.
In addition, there were no material amounts of consideration arising from contracts with customers that were not includedin the transaction price.

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.

(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 forservices is generally received within 30–70 days from the time of revenue recognition. The contractual consideration for transportation services provided to individual customers in the Retail Business Unit is received at the time the parcel is accepted.

25

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report26Notes to Consolidated Financial Statements
17. OTHER COMPREHENSIVE INCOME

19. SEGMENT INFORMATIONThe components of other comprehensive income for the years ended March 31, 2024 and 2023, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2024

2023

2024

Adjustments arising during the year

¥ 9,291¥  (304)$ 61,363

Reclassification adjustments to profit or loss

(2,344)(1,970)(15,479)

Amount before income tax effect

6,947(2,274)45,884

Income tax effect(1,883)

51(12,439)

Total¥ 5,064¥(2,223)$ 33,445

Adjustments arising during the year

¥ 1,186¥ 2,143$  7,833

Amount before income tax effect

1,186

2,143

7,833

Unrealized gain (loss) on available-for-sale securities:

Foreign currency translation adjustments:

Income tax effect
Total

(67)

149

(443)

¥ 1,119¥ 2,292$  7,390¥(2,031)¥  488$(13,420)

(815)

493

(5,375)(2,846)981(18,795)

875

(304)

5,776

¥(1,971)¥  677$(13,019)(2) M ethods of Measurement for the Amounts of Segment Revenues, Segment Profit, Segment Assets, andOther Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant
Accounting Policies.”¥   15¥    1$    99(3) Information about Segment Revenues, Segment Profit, Segment Assets, and Other Items

(63)

(55)

(417)

¥   (48)¥   (54)$   (318)¥ 4,164¥  692$ 27,498

Remeasurements of defined employees’ retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal(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 be allocated 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 Retail businessthat 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. forlarge 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

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

18. EARNINGS PER SHARE
Basic earnings per share (“EPS”) for the years ended March 31, 2024 and 2023, was as follows:
Millions of Yen
Year Ended March 31, 2024

Basic EPS—Profit attributable to common shareholders

Thousands of Shares

Profit Attributable to Weighted-average
Owners of Parent
Shares¥37,627

350,881

Yen

U.S. Dollars
EPS¥107.23

Year Ended March 31, 2023

Basic EPS—Profit attributable to common shareholders¥45,898

362,446$0.71

Millions of Yen

2024
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 andintangible fixed assets

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated¥  877,948¥824,097¥ 56,581¥1,758,626¥       
—332,775

13,234

100,767

446,776(446,776)¥1,210,723¥837,331¥157,348¥2,205,402¥(446,776)¥1,758,626¥   22,589¥  4,587¥ 12,734¥   39,910¥    150¥   40,060

829,542

193,604

139,204

1,162,350(26,455)

1,135,895

24,464

15,5673,473

43,504791

44,295

859

8,495

9,354

57,2105,149

62,359859
48,219

7,320

1,671

¥126.64¥1,758,626

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 andintangible fixed assets

27

Financial Statements with Independent Auditor’s Report

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated¥  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¥   59,337¥    748¥   60,085

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

2,324¥1,800,668

Financial Statements with Independent Auditor’s Report28Notes to Consolidated Financial Statements
Thousands of U.S. Dollars

Thousands of U.S. Dollars

2024
Corporate
Business Unit

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 andintangible fixed assets

2024

Other

Total

Reconciliation

Consolidated$5,798,482$5,442,816$  373,697$11,614,995$           —2,197,841

87,408665,520

2,950,769(2,950,769)$7,996,323$5,530,224$1,039,217$14,565,764$(2,950,769)$11,614,995$  149,194$   30,292$   84,104$   263,590$       987$   264,577

5,478,782

1,278,674

919,384

7,676,840(174,725)

7,502,115

161,571

102,816

22,9395,675
318,468

48,348

11,033

Express
Business$11,614,995

287,326

5,223

292,549

5,675

56,106

61,781

377,849

34,008411,857

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, 2024 and 2023, of ¥150 million ($987 thousand) and ¥748 million, respectively, include
group-wide expenses that are not allocated to each reportable segment (general administrative expenses of the Company, which is a pure holding
company) of ¥7,841 million ($51,789 thousand) and ¥7,385 million, and intersegment eliminations of ¥7,991 million ($52,776 thousand) and ¥8,133
million, respectively.
		 (2) R econciliations of segment assets at March 31, 2024 and 2023, of ¥26,455 million ($174,725 thousand) and ¥4,409 million, respectively, include
intersegment eliminations of assets and liabilities of ¥124,981 million ($825,446 thousand) and ¥112,277 million, and group-wide assets which are notallocated to each reportable segment of ¥98,526 million ($650,721 thousand) and ¥107,868 million, respectively.
		 (3) R econciliations of investments in entities accounted for using equity method at March 31, 2024 and 2023, of ¥8,495 million ($56,106 thousand) and¥4,312 million, respectively, are investments that are not allocated to each reportable segment.
		 (4) R econciliations of increases of tangible and intangible fixed assets for the years ended March 31, 2024 and 2023, of ¥5,149 million ($34,008 thousand)and ¥5,293 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, 2024 and 2023, of ¥829,542 million ($5,478,782 thousand) and ¥788,000 million, respectively,
include assets of the Transportation division and the Head Office division of Yamato Transport Co., Ltd. of ¥569,630 million ($3,762,168 thousand) and¥540,417 million, respectively.
	Increase of tangible and intangible fixed assets of the Retail Business Unit for the years ended March 31, 2024 and 2023, of ¥48,219 million ($318,468 thousand) and ¥38,973 million, respectively, include the amount of increase of the Transportation division and the Head Office division of Yamato Transport Co.,
Ltd. of ¥26,904 million ($177,687 thousand) and ¥23,631 million, respectively.

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

Contract Logistics
Business

GlobalBusiness

Mobility
Business

Other

Total

Reconciliation

Consolidated$11,614,995$10,227,852$588,296$489,102$133,172$176,573$11,614,995$           —263,548

73,433

24,974

223,722454,820

1,040,497(1,040,497)$10,491,400$661,729$514,076$356,894$631,393$12,655,492$(1,040,497)$11,614,995$    74,986$ 64,084$ 44,009$ 27,291$ 53,652$   264,022$       555$   264,577

6,110,452

157,905

432,003

200,460

689,394

7,590,214(88,099)

7,502,115

230,554

20,212

15,0296,186

15,345287,326

5,223

292,549

5,675

56,106

61,781

377,849

34,008411,857

5,675
340,596

7,478

19,934

4,980

4,861

Notes:	“Other” includes Yamato System Development Co., Ltd. (development of information systems).
Reconciliations are as follows:		 (1) R econciliations of segment profit for the years ended March 31, 2024, of ¥84 million ($555 thousand) include group-wide expenses that are notallocated to each reportable segment (general administrative expenses of the Company, which is a pure holding company) of ¥7,841 million ($51,789
thousand), and intersegment eliminations of ¥7,925 million ($52,344 thousand) .
		 (2) R econciliations of segment assets at March 31, 2024, of ¥13,339 million ($88,099 thousand), include intersegment eliminations of assets and liabilitiesof ¥111,865 million ($732,821 thousand) and group-wide assets which are not allocated to each reportable segment of ¥98,526 million ($650,722
thousand).
		 (3) R econciliations of investments in entities accounted for using equity method at March 31, 2024, of ¥8,495 million ($56,106 thousand) are investmentsthat are not allocated to each reportable segment.
		 (4) R econciliations of increases of tangible and intangible fixed assets for the years ended March 31, 2024, of ¥5,149 million ($34,008 thousand) are theCompany’s capital investment.
Segment profit is reconciled with operating profit in the consolidated statement of income.
	Segment assets of the Express Business at March 31, 2024, of ¥925,183 million ($6,110,452 thousand) include assets of the Head Office division of Yamato
Transport Co., Ltd. of ¥342,977 million ($2,265,218 thousand).
	Increase of tangible and intangible fixed assets of the Express Business for the years ended March 31, 2024, of ¥51,570 million ($340,596 thousand) include
the amount of increase of the Head Office division of Yamato Transport Co., Ltd. of ¥10,576 million ($69,848 thousand) .

[Related Information about Reportable Segments](1) Information about Products and Services
Operating revenues from customers for the years ended March 31, 2024 and 2023, were as follows:(4) Change in Reportable Segment
Effective from the fiscal year ending March 31, 2025, the Group is going to change its classification of reportable segments

Millions of Yen

from two reportable segments, which are Retail Business Unit and Corporate Business Unit to four reportable segments, which
are going to be Express Business, Contract Logistics Business, Global Business and Mobility Business.
The change involves management structure in order to achieve sustainable enhancement of corporate value by promoting
initiatives such as strengthening the TA-Q-BIN network and expanding the value provided, expanding corporate business2024
TA-Q-BIN¥1,363,771

Kuroneko DM-Bin
Kuroneko Yu-Mail¥41,910

2023
Other

¥352,945

Total

TA-Q-BIN¥1,758,626¥1,357,419

Kuroneko DM-Bin
Kuroneko Yu-Mail¥52,856

Other¥390,393

Total¥1,800,668

Thousands of U.S. Dollars

domain, and commercializing new business models based on the medium-term management plan “Sustainability

2024

Transformation 2030 - 1st Stage” which was formulated with the fiscal year ending March 31, 2027 as the final year under theCompany, which is the pure holding company.

TA-Q-BIN

Information about segment revenues, segment profit, segment assets, and other items by reportable segment for the fiscal$9,007,144

Kuroneko DM-Bin
Kuroneko Yu-Mail$276,798

Other

Total

$2,331,053$11,614,995

year ended March 31, 2024, according to the reporting segments after the change is as follows.
Millions of Yen

2024
Contract Logistics
Business

Express
Business

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

29

Financial Statements with Independent Auditor’s Report

GlobalBusiness

Mobility
Business

Other

Total

Reconciliation

Consolidated¥1,548,599¥ 89,074¥74,055¥20,163¥26,735¥1,758,626¥       
—39,904

11,1193,781

33,874

68,864

157,542(157,542)¥1,588,503¥100,193¥77,836¥54,037¥95,599¥1,916,168¥(157,542)¥1,758,626¥   11,354¥  9,703¥ 6,663¥ 4,132¥ 8,124¥   39,976¥     84¥   40,060

925,183

23,90865,41030,352

104,381

1,149,234(13,339)

1,135,895

34,908

3,060

2,276

937

2,323

43,504791

44,295

859

8,495

9,354

57,2105,149

62,359859
51,570

1,132

3,018

754

736

¥1,758,626(2) Information about Geographical Areas
The disclosure of operating revenues by geographical areas for the years ended March 31, 2024 and 2023, 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, 2024 and 2023, were omitted sinceproperty, plant and equipment in Japan account for more than 90% of the amount of property, plant and equipment in the
consolidated balance sheet.
(3) Information about Major Customers
The disclosure of operating revenues by major customers for the years ended March 31, 2024 and 2023, were omitted since nocustomer accounted for more than 10% of sales in the consolidated statement of income.

Financial Statements with Independent Auditor’s Report30Notes to Consolidated Financial Statements
21. SUBSEQUENT EVENT(4) 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, 2024 and 2023, were as
follows:

Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2024, was approved at the Company’s Board of Directors meeting held on May 15, 2024:

Millions of Yen
2024
RetailBusiness Unit

Loss on impairment oflong-lived assets

Corporate
Business Unit

Other

Total

Eliminations
or Group-Wide

Consolidated
Millions of Yen

¥899

¥—

¥524

¥1,423¥—¥1,423

Millions of Yen

Loss on impairment oflong-lived assets¥748

Corporate
Business Unit

¥281

Other

Total

¥966

Eliminations
or Group-Wide¥1,995¥—¥7,899$52,169* The total cash dividends approved at the Company’s Board of Directors meeting held on May 15, 2024, include the dividends of ¥11 million ($73 thousand) for theshare of the Company held by “Board Benefit Trust (BBT).”

2023
RetailBusiness Unit

Year-end cash dividends, ¥23 ($0.15) per share*

Thousands of
U.S. Dollars

Consolidated¥1,995

Thousands of U.S. Dollars
2024
RetailBusiness Unit

Loss on impairment oflong-lived assets$5,936

Corporate
Business Unit

$—

Other

$3,464

Total

Eliminations
or Group-Wide$9,400$—Consolidated$9,40020. SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWSIn September 2023, the Company sold 50.98% of the shares of Yamato Staff Supply Co., Ltd. As a result, Yamato Staff Supply
Co., Ltd. was excluded from the scope of consolidation.
The assets and liabilities of Yamato Staff Supply Co., Ltd. At the time of sales and reconciliation between the selling priceand the proceeds from sales of shares are as follows:

Current assets

Thousands of
U.S. Dollars

2024

2024

¥ 4,730$ 31,242

Long-lived assets

299

1,974

Current liabilities(3,310)(21,860)

Long-term liabilities

(62)

(413)

Investment account after sales of shares(812)(5,364)Gain on sales of shares
Selling priceCash and cash equivalents
Net proceeds from sales of shares

31

Millions of Yen

Financial Statements with Independent Auditor’s Report

1,377

9,097

2,222

14,676(957)(6,320)¥ 1,265$  8,356

Financial Statements with Independent Auditor’s Report32Independent Auditor’s Report

Deloitte Touche Tohmatsu LLC
Marunouchi Nijubashi Building
3-2-3 Marunouchi
Chiyoda-ku, Tokyo 100-8360
Japan
Tel: +81 (3) 6213 1000
Fax: +81 (3) 6213 1005
www.deloitte.com/ jp/en

INDEPENDENT AUDITOR'S REPORTTo the Board of Directors of Yamato Holdings Co., Ltd.:<Audit of Consolidated Financial Statements>
OpinionWe have audited the consolidated financial statements of Yamato Holdings Co., Ltd. and its consolidated
subsidiaries (the "Group"), which comprise the consolidated balance sheet as of March 31, 2024, and theconsolidated statement of income, consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended, andnotes to the consolidated financial statements, including a summary of significant accounting policies, allexpressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as of March 31, 2024, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance withaccounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in
our opinion, such translation has been made in accordance with the basis stated in Note 1 to theconsolidated financial statements. Such U.S. dollar amounts are presented solely for the convenience ofreaders outside Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of the Group inaccordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled ourother ethical responsibilities as auditors. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
A key audit matter is a matter that, in our professional judgment, was of most significance in our audit of
the consolidated financial statements of the current period. The matter was addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on the matter.

Member of
Deloitte Touche Tohmatsu Limited

33

Financial Statements with Independent Auditor’s Report

Examination of indications of impairment loss occurring on long-lived assets of
Yamato Transport Co., Ltd.
How the Key Audit Matter Was
Addressed in the Audit

Key Audit Matter Description

The Group provides delivery and other logistics
Our audit procedures related to examining theservices. As described in Note 3 to theindications of impairment loss for Yamato
consolidated financial statements, as of March 31, Transport included the following, among others:
2024, the Group's main assets subject toaccounting standards related to impairment of
We obtained an understanding of Yamato
long-lived assets are tangible long-lived assets ofTransport's overall business environment through¥454,754 million and intangible long-lived assets of inquiry of the departments in charge and inspection¥41,216 million. Among these balances, tangibleof the minutes of the Board of Directors' meetings,
long-lived assets of ¥394,695 million, andmanagement meetings, and other important
intangible long-lived assets of ¥39,471 million are approval documents. Our understanding included
attributed to Yamato Transport Co., Ltd. ("Yamato information on delivery unit prices, delivery volume,
Transport"), a consolidated subsidiary. As of March external delivery resources, unit commission
31, 2024, there were indications that certain assets expenses, number of employees, theor asset groups of Yamato Transport and othercircumstances of labor management, and internal
subsidiaries may be impaired, and the Grouptransfer of services between divisions.
recognized an impairment loss of ¥1,423 million.
We carefully tested whether changes to the asset
Regarding the asset groups, considering thegroupings were implemented in a timely manner
management accounting classification and thebased on changes in the facts and whether theunits for making investment decisions, Yamato
revised groups were appropriately determined
Transport changed the grouping based on
based on management accounting classification,business units during the current business year,
the units for making investment decisions, andand classified long-lived assets associated with the other similar factors.
Head Office division as common assets.
After understanding the process for creating the
Yamato Transport examined whether there arematerials used to examine the indications of
impairment loss, we evaluated Yamato Transport's
indications of impairment loss including theinternal controls related to the examination ofcontinual operating losses, the abolition or
restructuring of businesses, changes in long-lived indications of impairment loss, including theinspection and approvement at the appropriate
asset usage, idle assets, and the significant
levels of management.
deteriorations of the management environment.
The operating profits and losses of each asset
group are calculated based on the income andexpenditure statement output from the system, andthe allocation of headquarters expenses is
automatically calculated and allocated based on
the allocation rate.

We tested the consistency of the income andexpenditure statement and trial balance that were
to be the basis for the materials used to examine
the indications of impairment loss with thematerials themselves.

We involved our IT specialists to assist us in testing
the general IT control of the system that output theIf the materials for examining indications ofincome and expenditure statement as well as theimpairment loss were not created appropriately,
report logic of the income and expenditure
there may be errors in the determination andstatement.
impairment loss that should be recorded may not
be recorded. In particular, for the current fiscal year
when asset groupings are changed, there is a high Also, after examining the validity of theheadquarters expense allocation logic, therisk that there may be errors in the calculations inaccuracy of the allocation calculation was tested by
the operating profits and losses of each asset
recalculating it.
group. Therefore, we have identified theexamination of indications of impairment loss
occurring on long-lived assets of Yamato Transport Furthermore, in order to examine whether there
was significant deterioration with the management
as a key audit matter.
environment, organizational restructurings, idle
assets, or other similar factors, we inquired withmanagement and read various meeting minutes.

-2-

Financial Statements with Independent Auditor’s Report34Independent Auditor’s Report

Other Information
Other information comprises the information included in the Group's disclosure documents
accompanying the audited consolidated financial statements, but does not include the consolidated
financial statements and our auditor's report thereon.
We determined that no such information existed and therefore, we did not perform any work thereon.
Responsibilities of Management and Audit & Supervisory Board Members and the Audit &Supervisory Board for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Audit & Supervisory Board members and the Audit & Supervisory Board are responsible for overseeing
the Directors' execution of duties relating to the design and operating effectiveness of the controls overthe Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements• Evaluate whether the overall presentation and disclosures of the consolidated financial statements arein accordance with accounting principles generally accepted in Japan, as well as the overall
presentation, structure and content of the consolidated financial statements, including the disclosures,and whether the consolidated financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.
We communicate with Audit & Supervisory Board members and the Audit & Supervisory Board
regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide Audit & Supervisory Board members and the Audit & Supervisory Board with astatement that we have complied with relevant ethical requirements regarding independence, andcommunicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with Audit & Supervisory Board members and the Audit & Supervisory
Board, we determine those matters that were of most significance in the audit of the consolidated
financial statements of the current period and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
<Fee-Related Information>

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with auditing standards generally accepted in Japan
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.

Fees for audit and other services for the year ended March 31, 2024, which were charged by us and our
network firms to Yamato Holdings Co., Ltd. and its subsidiaries were ¥421 million and ¥80 million,
respectively.

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Our firm and its designated engagement partners do not have any interest in the Group which is required
to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks. The
procedures selected depend on the auditor's judgment. In addition, we obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Deloitte Touche Tohmatsu LLC
July 12, 2024

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan• Obtain, when performing risk assessment procedures, an understanding of internal control relevant tothe audit in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group's ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor's report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions may cause the Group to cease to continue as agoing concern.
-3-

35

Financial Statements with Independent Auditor’s Report-4-

Financial Statements with Independent Auditor’s Report36