Financial Statements with
Independent Auditor’s Report
Consolidated Financial Statements for the Year Ended March 31,
2022, and Independent Auditor’s Report

Yamato Holdings Co., Ltd.

Consolidated Balance Sheet
March 31, 2022

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

ASSETS

2022

2021

2022

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

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

LIABILITIES AND EQUITY

2022

2021

2022

¥   15,000¥   20,000$  122,559

4,850

19,05539,631CURRENT LIABILITIES:¥  182,645¥  241,523$ 1,492,316

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

Short-term bank loans (Notes 10 and 16)
Current portion of long-term debt (Notes 10 and 16)  Trade218,923

212,766

1,788,731   Installment (Note 6)

48,05545,643392,641

Trade

165,346

153,860

1,350,977   Allowance for doubtful accounts(1,457)(1,342)(11,902)

Other

18,44012,221150,664

Inventories (Note 7)

2,216

2,281

18,108

Income taxes payable

14,39632,099117,623

Prepaid expenses and other current assets

30,46327,508248,897

Accrued expenses

81,90583,036669,212

480,845528,379

3,928,791

Deferred profit on installment sales (Notes 6 and 16)

4,714

4,781

38,517

Other current liabilities (Notes 12 and 17)

48,15664,317393,465

352,807389,369

2,882,648

Long-term debt (Note 10)

26,03826,099212,751

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

94,142

71,835769,196

Deferred tax liabilities (Note 14)

1,914

5,194

15,636

Other long-term liabilities (Note 12)

13,72013,207112,100

135,814116,335

1,109,683

127,235

127,235

1,039,585    Total current assets

Notes and accounts payable:    Total current liabilities
PROPERTY, PLANT AND EQUIPMENT—At cost:
Land
Buildings and structures
VehiclesMachinery and equipment
Leased assets (Note 15)
Construction in progress
Others    Total
Accumulated depreciation     Net property, plant and equipment

179,651
376,844
197,105

174,141
367,719
199,977

1,467,853
3,079,045
1,610,463

135,149
39,653
3,165

128,533
36,645
6,345

1,104,248
323,991
25,861

2,471

2,156

20,192934,038

915,516

7,631,653(504,159)(509,203)(4,119,283)

429,879

406,3133,512,370

LONG-TERM LIABILITIES:    Total long-term liabilities
COMMITMENTS LIABILITIES (Note 15)
EQUITY (Notes 13 and 23):
Common stock—authorized, 1,787,541,000 shares in 2022 and 2021;
issued, 388,575,592 shares in 2022 and 2021

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 8 and 16) Investments in and advances to unconsolidated subsidiaries and affiliates,
net of valuation allowance of ¥439 million ($3,583 thousand) in 2022 and ¥371 million
in 2021 (Note 16)
Long-term loans
SoftwareLease deposits
Deferred tax assets (Note 14)
Other assets (Notes 2.k and 11)     Total investments and other assets
TOTAL

33,94240,003

277,328

Capital surplus

36,81336,813

300,786

Retained earnings

464,495

431,572

3,795,201

Treasury stock—at cost, 22,084,421 shares in 2022 and 17,550,515 shares in 2021

(49,552)(39,549)(404,865)

Accumulated other comprehensive income:
17,882
1,872
38,58820,51954,198

16,942
1,634
22,082
20,122
45,625

146,105
15,296315,288
167,655
442,829   Unrealized gain on available-for-sale securities

9,130

8,891

74,598    Total equity

176,131

155,299

1,439,099¥1,086,855¥1,089,991$ 8,880,260

11,49915,884

93,953   Foreign currency translation adjustments(513)(1,317)(4,194)   Remeasurements of defined employees’ retirement benefit plans (Notes 2.k and 11)

566

5,730

4,624

590,543576,368

4,825,090    Total
Non-controlling interests
TOTAL

7,691

7,919

62,839598,234

584,287

4,887,929¥1,086,855¥1,089,991$8,880,260

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, 2022

Year Ended March 31, 2022

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

OPERATING REVENUES (Note 17)

2022

2021

2022

¥1,793,618¥1,695,867$14,654,940

Operating costs   Total operating costs and expenses  Operating profit

Millions of Yen

PROFIT

1,654,085

1,538,524

13,514,875

62,33365,221

509,298

1,716,418

1,603,745

14,024,173

77,20092,122630,767

Unrealized (loss) gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined employees’ retirement benefit plans
Share of other comprehensive income of entities accounted for using equity method   Total other comprehensive (loss) income

OTHER INCOME (EXPENSES):COMPREHENSIVE INCOME

Interest and dividend income

1,562

1,154

12,761

Interest expense

(786)

(742)

(6,418)(Loss) gain on sales and disposal of property, plant and equipment—net

(361)

255

(2,947)

Owners of parent(19,775)

Non-controlling interests

Loss on impairment of long-lived assets (Note 9)(2,420)Gain on sales of investment securities (Note 8)

14,431(Loss) gain on sales of shares of subsidiaries and affiliates—net(2,222)

38(18,157)

(49)

(355)

(398)

Loss on valuation of investment securities (Note 8)(877)

117,908

Loss on valuation of investment in unconsolidated subsidiaries and affiliates

2021¥57,072¥56,935$466,309(5,415)

7,926(44,245)

794

(994)

6,486

(5,283)

9,422(43,160)

108

3

886

2022

(9,796)

16,357(80,033)¥47,276¥73,292$386,276¥47,210¥72,849$385,736

66

443

540

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

See notes to consolidated financial statements.

(18)

Gain on investments in investment partnerships

4,510

232

36,852

Share of loss of entities accounted for using equity method

(243)

(766)

(1,984) Provision of allowance for doubtful accounts in unconsolidated
subsidiaries and affiliates

(57)

(466)

Gain on liquidation of subsidiaries

1,210

9,887

Gain on transition of retirement benefit plan (Note 11)

1,420

11,601

Loss on revision of retirement benefit plan (Note 11)(14,999)(122,551)

Electric vehicle subsidies

656

Loss associated with measures to address COVID-19
Other—net

2022

OTHER COMPREHENSIVE INCOME (Note 18):

OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses

Thousands of
U.S. Dollars(Note 1)

(1,163)
1,844

1,224

15,069   Other income (expenses)—net

3,840

(362)

31,382PROFIT BEFORE INCOME TAXES

81,04091,760662,149

Current

29,29338,252

239,347

Deferred(5,325)(3,427)(43,507)   Total income taxes

23,96834,825

195,840PROFIT57,07256,935466,309

PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS

1,116

234

9,114

¥   55,956¥   56,701$   457,195

INCOME TAXES (Note 14):

PROFIT ATTRIBUTABLE TO OWNERS OF PARENT

U.S. Dollars(Note 1)

Yen
2022

2021

¥151.03¥151.55

$1.23

46.00

46.00

0.38

2022

PER SHARE OF COMMON STOCK (Notes 2.q and 19):
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, 2022

Year Ended March 31, 2022

Thousands

Outstanding
Number of
Shares ofCommon Stock Common Stock

BALANCE,APRIL 1, 2020

385,216¥127,235

Unrealized
Foreign Currency
Gain onAvailable-for-Sale
Translation
Capital Surplus Retained Earnings Treasury Stock
Securities
Adjustments¥36,813 Profit attributable toowners of parent¥441,747¥(54,771)¥  (317)Total¥ (3,692)¥555,173(14,191)(35,694)(50,916)

7,726
371,025

127,235

36,813 Cumulative effects ofchanges in accounting
policies (Note 4)

431,572(39,549)

15,884(1,000)(1,317)

9,422
5,730

(3,343)RESTATED BALANCE

127,235

36,813428,229

Non-controlling
Interests¥7,662

Total Equity

Profit before income taxes¥562,835
56,701(15,960)(15,960)(35,694)(35,694)(39,549)

15,884(1,317)

5,730

16,148257

16,405¥ 81,040¥ 91,760$  662,149  Income taxes—paid(46,738)(25,390)(381,881)   Depreciation and amortization

35,57048,898290,630

361

(255)

2,947

   Loss on impairment of long-lived assets

2,420

877

19,775   Gain on sales of investment securities(14,431)

Adjustments for:   Loss (gain) on sales and disposal of property, plant and equipment—net   Loss (gain) on sales of shares of subsidiaries and affiliates—net   Loss on valuation of investment securities

576,368

7,919

584,287(3,343)(229)(3,572)573,025

7,690

580,715  Changes in assets and liabilities, net of effects from previously consolidated
subsidiaries:   Share of loss of entities accounted for using equity method(24,967)(109,762)

144

1,517

1,179

    Increase in notes and accounts payable

11,537

10,026

94,262    Increase in liability for employees' retirement benefits

21,823

1,942

178,303  Other—net(28,789)

18,412(235,225)   Total adjustments(29,023)

32,161(237,141)    Net cash provided by operating activities

52,017

123,921425,008    Increase in notes and accounts receivable(19,690)(19,690)(19,690)   Decrease in inventories(10,003) Net change in the year
BALANCE,MARCH 31, 2022

366,491¥127,235¥36,813¥464,495¥(49,552)(4,385)804(5,164)(8,745)

1(8,744)¥11,499¥  (513)¥  566¥590,543¥7,691¥598,234

398

18(13,434)

55,956(10,003)

355

1,984

55,956(10,003)

18,15749766

55,956(4,534)(38)

243 Cash dividends,¥53 per share Disposal oftreasury stock(117,908)

2,222   Loss on valuation of investment in unconsolidated subsidiaries and affiliates Profit attributable toowners of parent Purchase oftreasury stock

2022

OPERATING ACTIVITIES:

50,916

Net change in the year

2021

2022

56,701(15,960) Retirement oftreasury stock
BALANCE,MARCH 31, 2021

¥ 8,158

Millions of Yen

Remeasurementsof Defined
Employees’
Retirement
Benefit Plans

56,701 Cash dividends,¥42 per share Purchase oftreasury stockThousands of
U.S. Dollars(Note 1)Millions of Yen
Accumulated Other Comprehensive Income

INVESTING ACTIVITIES:
Proceeds from sale of property, plant and equipment

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

Common Stock

BALANCE,MARCH 31, 2021

$1,039,585

Unrealized
Foreign Currency
Gain onAvailable-for-Sale
Translation
Capital Surplus Retained Earnings Treasury Stock
Securities
Adjustments$300,785 Cumulative effects ofchanges in accounting
policies (Note 4)
RESTATED BALANCE$3,526,201$(323,140)$129,781$(10,757)

Remeasurementsof Defined
Employees’
Retirement
Benefit Plans$ 46,818(27,316)
1,039,585

300,785

3,498,885(323,140)

129,781(10,757)

46,818Non-controlling
Interests

Total

Total Equity

See notes to consolidated financial statements.

$  4,624(484)(59,752)

1,259

1,078

10,289

(1,466)(1,480)(11,976)(17,789)(207,236)(58,943)

44,078(481,602)

Repayments of short-term debt—net(10,663)(55,904)(87,121)

Repayments of long-term debt

(14,000)(15,500)(114,388)

Dividends paid

(19,741)(16,138)(161,295)

Purchase of treasury stock—net(10,057)(35,708)(82,176)5

3

41(54,456)(123,247)(444,939)3$ (4,194)(7,313)(25,363)3$ 93,953

11,625Other

2$(404,865)

93,437

Payment of loans(81,727)$3,795,201

1,423

4,744,788(81,727)$300,786

Decrease in investments in and advances to unconsolidated subsidiaries and affiliates Payment for sales of shares of subsidiaries resulting in change in scope of consolidation(Note 22)62,831(81,727)$1,039,585(46,495)

4,681,957(160,879)(42,194)

152,286(793)

Collection of loans(160,879)

6,563

100

(5,690)(29,191)(160,879)(35,828)

18,638(1,875) Cash dividends,$0.43 per share

BALANCE,MARCH 31, 2022

Proceeds from sales of investment securities
Purchases of investment securities(27,316)

457,195 Net change in the year

(333,189)$4,773,979

457,195

1

2,846(32,075)$64,706

457,195 Disposal oftreasury stock

2,084(40,779)$4,709,273 Profit attributable toowners of parent Purchase oftreasury stock

348

Purchases of property, plant and equipment(71,459)$4,825,090

8$62,839(71,451)$4,887,929    Net cash (used in) provided by investing activities
FINANCING ACTIVITIES:Other    Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH
EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

701

(130)

5,732

(60,681)

44,622(495,801)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

241,285

196,663

1,971,443

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 2.e)¥180,604¥241,285$1,475,642

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, 2022

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance withaccounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2021 consolidated
financial statements to conform them to the classifications and presentations used in 2022.
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¥122.39 to $1, the approximate rate of exchange at March 31, 2022. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated financial statements as of March 31, 2022, include the accounts of the Company andits 30 (39 in 2021) significant subsidiaries (together, the “Group”).
Effective from the fiscal year ended March 31, 2022, Yamato Global Express Co., Ltd., Yamato Logistics Co., Ltd.,
Yamato Global Logistics Japan Co., Ltd., Yamato Packing Service Co., Ltd., Yamato Packing Technology Institute Co., Ltd.,
Yamato Financial Co., Ltd., and Yamato Management Service Co., Ltd. have been excluded from the scope of consolidation
due to absorption-type mergers in which Yamato Transport Co., Ltd. is the surviving company. In addition, YAMATO(CHINA) TRANSPORT CO., LTD. and Yamato Home Convenience Co., 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 toexercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method.
The unconsolidated subsidiaries, whose combined assets, net sales, profit and retained earnings in the aggregate are
not significant to the consolidated financial statements, have not been consolidated with the Company.
There were 22 (23 in 2021) affiliates accounted for by the equity method.
Effective from the fiscal year ended March 31, 2022, Yamato Home Convenience Co., Ltd. has been excluded from thescope of consolidation due to partial transfer of its shares and has been included in the scope of the equity method. In
addition, SCG YAMATO EXPRESS CO., LTD. and GUANGZHOU WISEPOWER TRANSPORTATION & DISTRIBUTIONGROUP CO., LTD. have been excluded from the scope of the equity method due to transfer of their shares.
Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated atcost, less a valuation allowance representing possible losses on the investments that are deemed to be other than temporary. If the equity method of accounting had been applied to the investments in such companies, the effect on the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within the Group is also eliminated.
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements—
Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements,” the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events undersimilar circumstances should in principle be unified for the preparation of the consolidated financial statements. However,erty, plant and equipment and investment properties and incorporation of the cost model accounting ; and (e) recording again or loss through profit or loss on the sale of an investment in an equity instrument for the difference between theacquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in
the fair value of an investment in an equity instrument, where a foreign affiliate elects to present in other comprehensive
income subsequent changes in the fair value of an investment in an equity instrument.
d. Revenue Recognition—Principal performance obligations in the principal businesses relating to revenues recognizedfrom contracts with customers in the Group and the normal timing of satisfaction of performance obligation (the normal
timing of recognizing revenues) are as follows:(1) Retail Business Unit
Retail Business Unit mainly provides small-parcel delivery services such as TA-Q-BIN. In this service, the Group provides aservice to collect and deliver cargoes at the customer’s request based on a contract with the customer, and revenue fromthis service is recognized in accordance with satisfaction of performance obligations measured by the progress of delivery,
because other companies are not required to perform the transportation process that has already been performed, even if
delivery to the designated delivery destination cannot be completed.
(2) Corporate Business Unit
In addition to the same transportation services as Retail Business Unit, Corporate Business Unit provides logistics support
services, such as cargo storage and logistics services for inbound and outbound shipments, in order to provide value tothe entire supply chain of its customers. The Group provides logistics support services, which include the collection, storage, packing, and delivery of cargo based on contracts with customers, and recognizes each contractually agreed-uponprocess as a performance obligation, and recognizes revenue for each process under contract in accordance with satisfaction of performance obligations measured by the progress of the work, as the customer receives the economic benefit of
the work as it progresses.
e. Cash Equivalents—Cash equivalents in the consolidated statement of cash flows are short-term investments that arereadily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statement of cash flows include time deposits, certificates of deposit, and mutual funds investing in bonds that
represent short-term investments, all of which mature or become due within three months of the date of acquisition.
The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash
equivalents in the accompanying consolidated statement of cash flows was as follows:

financial statements 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

7

Time deposits due beyond three months

actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c) expensing

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

Financial Statements with Independent Auditor’s Report

2021

2022

Cash and cash equivalents presented in the consolidated balance sheet

in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization ofcapitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant andThousands of
U.S. Dollars

Millions of Yen¥182,645¥241,523

2022$1,492,316(2,041)(238)(16,674)¥180,604¥241,285$1,475,642

f. Inventories—Inventories are stated at the lower of cost determined by the first-in, first-out method or net selling value.
Financial Statements with Independent Auditor’s Report8Notes to Consolidated Financial Statements
g. Investment Securities—Investment securities are classified and accounted for, depending on management’s intent, as

reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation isfollows: (1) trading securities, which are held for the purpose of earning capital gains in near term, are reported at fair

incurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made.

value, and the related unrealized gains and losses are included in earnings; (2) held-to-maturity debt securities, for which

Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing

there is a positive intent and ability to hold to maturity, are reported at amortized cost; and (3) available-for-sale securities,

the carrying amount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently

which are not classified as either of the aforementioned securities, are reported at fair value, with unrealized gains andallocated to expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted tolosses, net of applicable taxes, reported in a separate component of equity. The Group had no trading securities at March

its present value each period. Any subsequent revisions to the timing or the amount of the original estimate of undis-

31, 2022 and 2021.

counted cash flows are reflected as reconciliation to the carrying amount of the liability and the capitalized amount of theEquity securities with no market price and investments in capital are stated at cost determined by the moving-averagerelated asset retirement cost.

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 ofequity interest in the partnership based on the most recent financial statements available according to the reporting datestipulated in the partnership agreement.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge tom. Leases—For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations in
the balance sheet.
For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized aslease receivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee arerecognized as investments in leases.

income.
n. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidatedh. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation of property, plant andstatement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for theequipment excluding leased assets is computed by the straight-line method. Depreciation of leased assets is computed by

expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets

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

and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences.

The range of useful lives is principally as follows:o. Foreign Currency Transactions—All short and long-term monetary receivables and payables denominated in foreign
Buildings and structures

7–60 years

Vehicles

2– 7 years

Machinery and equipment

2–20 years

currencies are translated into Japanese yen at the exchange rates at the balance sheet date.
p. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is trans-

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

lated at the 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.

i. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized

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.

if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected toresult from the continued use and eventual disposition of the asset or asset group. The impairment loss would be mea-q. Per Share Information—Basic earnings per share is computed by dividing profit attributable to common shareholders

sured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of theby the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits.

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

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

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.

and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest
expense, net of tax, and full exercise of outstanding warrants.
For the years ended March 31, 2022 and 2021, diluted earnings per share is not disclosed because the Company had
no dilutive securities.

k. Retirement and Pension Plans—The Company and consolidated subsidiaries mainly have contributory trusted pension
plans and unfunded retirement benefit plans. In addition, defined contribution retirement plans were introduced along with

Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicableto the respective fiscal years, including dividends to be paid after the end of the year.

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

r. 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 AccountingStandard 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 which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation—When
the presentation of financial statements is changed, prior-period financial statements are reclassified in accordance withl. Asset Retirement Obligations—An asset retirement obligation is recorded for a legal obligation imposed either by law

the new presentation. (3) Changes in Accounting Estimates—A change in an accounting estimate is accounted for in theor contract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset andperiod of the change if the change affects that period only, and is accounted for prospectively if the change affects bothis associated with the retirement of such tangible fixed asset.

the period of the change and future periods. (4) Corrections of Prior-Period Errors—When an error in prior-period financial

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

statements is discovered, those statements are restated.

retirement and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a

9

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report10Notes to Consolidated Financial Statements
s. Performance-Based Share Remuneration Plan “Board Benefit Trust (BBT)”— The Company has introduced amaterial impact on the consolidated financial statements for the following fiscal year and thereafter if it becomes neces-

performance-based share remuneration plan “Board Benefit Trust (BBT)” for the directors (except for outside directors) andsary for them to be reconsidered due to uncertain economic conditions and the operating conditions of the Group.

executive officers who do not concurrently serve as directors of the Company (“Officers”). This plan purports to further
enhance the connection between Officers’ remuneration and performance and share value of the Company, and raise theirmotivation to make contributions to increase the Company’s long-term performance and corporate value by sharing not

4. ACCOUNTING CHANGE

only the benefits of a rise in share prices but also the risk of a decline in share prices with shareholders.
The Plan is a performance-based share remuneration plan in which the trust acquires the Company’s shares using

Application of Accounting Standard for Revenue Recognition—In March 2020, the ASBJ issued ASBJ Statement No.

money contributed by the Company as the source of funds, and Officers are provided with the Company’s shares and29, “Accounting Standard for Revenue Recognition,” and ASBJ Guidance No. 30, “Implementation Guidance on Accounting

cash equivalent to the market value of the Company’s shares (“Shares of the Company”) through the trust in accordanceStandard for Revenue Recognition.” An entity should recognize revenue by applying the following steps:

with “Regulation for Benefit of Shares to Officers” established by the Company. As a general rule, Officers shall be entitled to receive Shares of the Company at the time of retirement.

Step 1: Identify the contract(s) with a customer

The Company applies the same accounting method as stipulated in the ASBJ PITF No.30, “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employee etc. through Trusts.”

Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price

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

Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

held by the trust bank at March 31, 2022 and 2021, were both ¥1,376 million ($11,246 thousand) and 483,700 shares,
respectively.

The Company has applied the standards from the beginning of the fiscal year ended March 31, 2022, and recognizedrevenue at the time the control of promised goods or services is transferred to the customer at the amount expected tot. New Accounting Pronouncements

be received upon exchange of said goods or services. As such, whereas revenue from certain business transactions

Implementation Guidance on Accounting Standard for Fair Value Measurement
In June 2021, the ASBJ revised ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair
Value Measurement.”
When the ASBJ had issued this guidance in July 2019, the ASBJ had decided to take approximately one year to consider matters because it had been required to discuss with related parties and consider the measurement of the fair valueof investment trusts and the notes to fair value for investments in partnerships, etc., in which the net amount of equity
interest is recorded on the balance sheet. As a result of discussion and consideration, the ASBJ has revised and issued
the guidance.
The revised guidance will be applied from the beginning of fiscal year ending March 31, 2023.
The application of the revised guidance has no impact on the consolidated financial statements.

including transportation income involving the Yamato Group’s mainstay service, TA-Q-BIN, was previously recognized at apoint in time, such as when parcels were consigned to TA-Q-BIN, the Company recognizes such revenue in accordancewith satisfaction of performance obligations.
The application is subject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting
policy had been applied to periods prior to the beginning of the fiscal year ended March 31, 2022, was added to or
deducted from the opening balance of retained earnings of the fiscal year ended March 31, 2022, and thus the new
accounting policy is applied from such opening balance. However, by applying the method set forth in item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition, modifications to contracts
carried out prior to the beginning of the fiscal year ended March 31, 2022, were accounted for based on the contractual
terms after all contract modifications were reflected. As a result, this cumulative effect was added to or deducted from theopening balance of retained earnings of the fiscal year ended March 31, 2022.

3. SIGNIFICANT ACCOUNTING ESTIMATE

For the fiscal year ended March 31, 2022, as a result of this change, operating revenues decreased by ¥2,082 million

Impairment of Long-Lived Assets($17,010 thousand), operating costs decreased by ¥1,998 million ($16,323 thousand), operating profit and profit before

Amount recorded in the consolidated financial statements for the current fiscal year based on accounting estimates that

income taxes each decreased by ¥84 million ($687 thousand), and retained earnings as of the beginning of the fiscal year

may have a material impact on the consolidated financial statements for the following fiscal year are as follows:

ended March 31, 2022, decreased by ¥3,343 million ($27,316 thousand).

Thousands of
U.S. Dollars

Millions of Yen
2022

Property, plant and equipment
Intangible assets

2021

2022

¥429,879¥406,313$3,512,370

45,64629,555372,959

In cases where there are indications that an asset may be impaired, an impairment test is performed based on the
future cash flows generated by the asset. The cash-generating unit, which is used to determine whether it is necessary for
an asset to recognize impairment loss, is the smallest unit in an asset group generating cash inflows generally independent of cash inflows from other assets or asset groups. The criteria of the asset groups are the management accountingclassification and the unit used for investment decision making, and the grouping of Yamato Transport Co., Ltd. wasreviewed in consideration of the management accounting classification, the unit used for investment decision making,etc., in accordance with the transition to a new group management structure in the fiscal year ended March 31, 2022, andthe four Business Divisions of Retail, Corporate, Global SCM, and EC were grouped as the smallest cash flow generating
units, and assets associated with the four Functional Divisions of Transportation, Digital, Platform, and Professional
Services, as well as Corporate Division, were classified as common assets. Because the Retail Business Unit holds mostof the above property, plant and equipment and intangible assets, the undiscounted future cash flows used in determining
recognition of impairment losses on those assets of the business are based on future management plans that include
significant assumptions, such as the unit price and the transaction volume of TA-Q-BIN. These assumptions may have a

11

Financial Statements with Independent Auditor’s Report

In addition, the effect of this change on basic earnings per share for the fiscal year ended March 31, 2022, is immaterial. Net assets per share decreased by ¥9.22 ($0.08).
Application of Accounting Standard for Fair Value Measurement—In July 2019, the ASBJ issued ASBJ Statement No.
30, “Accounting Standard for Fair Value Measurement,” ASBJ Statement No. 9, “Accounting Standard for Measurement of
Inventories,” ASBJ Statement No. 10, “Accounting Standard for Financial Instruments,” ASBJ Guidance No. 31,“Implementation Guidance on Accounting Standard for Fair Value Measurement,” ASBJ Guidance No. 19, “Implementation
Guidance on Disclosures about Fair Value of Financial Instruments.”
ASBJ tried ensuring consistency between Japanese accounting standards and international accounting standards
mainly for guidance and disclosures on fair value of financial instruments and issued “Accounting Standard for Fair Value
Measurement,” etc. based on the fact that International Accounting Standards Board and Financial Accounting Standards
Board had already issued detailed guidance on fair value measurement, which are almost identical to each other. As thebasic policy in developing accounting standards for fair value measurement, ASBJ incorporated basically all of the mattersdefined in IFRS 13 Fair Value Measurement from a standpoint of increasing comparability of financial statements among
domestic and foreign companies by using a unified measurement method. Furthermore, ASBJ defined alternative accounting treatment to the individual matters without impairing comparability of financial statements considering accounting
practices, etc. common in Japan.
The Company has applied the standards from the beginning of the fiscal year ended March 31, 2022, and prospectively
applied new accounting policy stipulated by the standards subject to the transitional treatment provided for in paragraph

Financial Statements with Independent Auditor’s Report12Notes to Consolidated Financial Statements
19 of ASBJ Statement No. 30 and paragraph 44-2 of ASBJ Statement No. 10.
In addition, this application has no impact on the consolidated financial statements.

Name:

Yamato Packing Service Co., Ltd. (“YPC”)

Business: Packing/cargo transportation services

Changes in Depreciation Method for Property, Plant and Equipment and Changes in Useful Life—Effective from theName:fiscal year ended March 31, 2022, the Company and its domestic consolidated subsidiaries have changed the depreciation

Business: R&D and sale of packaging containers and materials

Yamato Packing Technology Institute Co., Ltd. (“YPTI”)

method for property, plant and equipment (excluding leased assets) from the declining-balance method to the straight-line
method. However, the straight-line method has already been adopted for buildings acquired on or after April 1, 1998

Name:

(excluding facilities attached to buildings) and for facilities attached to buildings and structures acquired on or after April 1,

Business:	Settlement services targeting business customers and general consumers (TA-Q-BIN Collect service, Internet

Yamato Financial Co., Ltd. (“YFC”)
total settlement service, etc.)

2016. Overseas consolidated subsidiaries have been using the straight-line method thus far.
Based on its medium-term management plan, “One Yamato 2023,” the Yamato Group transitioned to its “One Yamato”
management structure with the purpose of transforming to a fully optimized organization structured according to customer

Date of the business combination

segments and improving management speed. To this end, Yamato Transport Co., Ltd. carried out the absorption-type

April 1, 2021

merger and absorption-type company split involving seven consolidated subsidiaries of the Company in April 2021. Taking
this opportunity, the Company and its domestic consolidated subsidiaries reviewed their use of property, plant and equip-

Legal form of the business combination

ment in Japan.

Absorption-type merger with YGX, YLC, YGL, YPC, YPTI and YFC as dissolving companies and YTC as the surviving company

They have consequently changed to the straight-line method based on judgment that allocating costs by the straightline method reflects actual use of assets more rationally because they expect their asset use in Japan to remain consis-

Name of the company after the business combination

tent. In addition, they conducted surveys on actual use of property, plant and equipment, on the occasion of reviewing

The name did not change.

changes to the depreciation method of property, plant and equipment. Effective from the fiscal year ended March 31,
2022, they have consequently changed useful lives of some vehicles based on more realistic, economically feasible fore-(2) Absorption-type split in which Yamato Transport Co., Ltd. is the successor company

cast periods and applied this change prospectively.

Name and content of business involved in the business combination

As a result, operating profit and profit before income taxes for the fiscal year ended March 31, 2022, each increased by¥13,076 million ($106,837 thousand) compared with previous method.

Name:

Web-based Mail Order Solution Business of Yamato System Development Co., Ltd. (“YSD”)

Content:	Offering a package consisting not only of services related to launch of a mail order business, but also, to fully
support the customer’s business, creating a tailor-made IT system and managing it

5. BUSINESS COMBINATIONSName:Regional Operation Management Department of YSDContent: Sales department
a. Transactions under Common Control
At the meeting held on December 17, 2020, the Board of Directors of the Company resolved to conclude contracts involv-

Date of the business combination

ing the absorption-type merger and absorption-type split between Yamato Transport Co., Ltd., which is a consolidated

April 1, 2021

subsidiary of the Company, and seven consolidated subsidiaries, including Yamato Logistics Co., Ltd. and Yamato Global
Logistics Japan Co., Ltd., and they implemented the absorption-type merger and absorption-type split on April 1, 2021.

Legal form of the business combination

Absorption-type split with YSD as the absorbed company and YTC as the successor company

Outline of Business Combination(1) Absorption-type merger in which Yamato Transport Co., Ltd. is the surviving company

Name of the company after the business combination

Name and business of the companies involved in the business combination

The name did not change.

Surviving company

Name:

Yamato Transport Co., Ltd. (“YTC”)

Business: Small parcel delivery services for the general public and corporations (TA-Q-BIN, Kuroneko DM-Bin, etc.)
Dissolving company

Name:

Yamato Global Express Co., Ltd. (“YGX”)

Business: Small parcel delivery services for corporations (domestic air cargo transport business, etc.)
Name:(3) Outline and purpose of business combination
Based on the “YAMATO NEXT100,” the grand design for the medium-term management of the Yamato Group, under theCompany, which is the pure holding company, the Yamato Group shifted to group management structure consisting of the
Retail Business Unit, which manages the Retail Business Division, the Corporate Business Unit, which manages the
Corporate Business Division, the Global SCM Business Division, and the EC Business Division, the Functional Divisions,and the Corporate Division with the purpose of transforming to a fully optimized organization structured according to customer segments and improving management speed.

Yamato Logistics Co., Ltd. (“YLC”)

Business:	Logistics services for corporations (total support services including logistics, medical products distribution services, maintenance support service, and recall support service)

Outline of Accounting Treatment

The transaction was accounted for as a transaction under common control in accordance with ASBJ Statement No. 21,“Accounting Standard for Business Combinations,” and ASBJ Guidance No. 10, “Guidance on Accounting Standards for

Name:

Yamato Global Logistics Japan Co., Ltd. (“YGL”)

Business Combinations and Business Divestitures.”Business:	International air cargo service, handling of marine cargo, import/export customs clearance services, overseas
lifestyle support services including international moving, fine art transport business

13

Financial Statements with Independent Auditor’s Reportb. Business Divestiture
At the meeting held on July 20, 2021, the Board of Directors of the Company resolved to transfer 51% of the issued
common shares of Yamato Home Convenience Co., Ltd. (“YHC”), which is the Company’s consolidated subsidiary, held by
the Company, to ART MOVING COMPANY Co., Ltd. (“ART”), and concluded a share transfer contract on the same day. As
Financial Statements with Independent Auditor’s Report14Notes to Consolidated Financial Statementsa result of transfer, the Company’s ratio of voting rights in YHC decreased from 100% to 49%, and YHC has been changed

Estimated Amount of Profit or Loss Related to Divested Business Recognized in the Consolidated Statement of Income forfrom a consolidated subsidiary of the Company to an affiliate accounted for by equity method from the fiscal year ended

the Fiscal Year Ended March 31, 2022

March 31, 2022. In addition, ART changed its name on January 1, 2022.
Operating revenues

Outline of Business Divestiture

Millions of Yen

Thousands of
U.S. Dollars¥33,469$273,461(3,012)(24,612)

Operating loss

Name of the successor company in the business divestiture

ART MOVING COMPANY Co., Ltd. (former ART CORPORATION)

6. INSTALLMENT RECEIVABLES

Name and business of the company divested in the business divestiture

Name:

Yamato Home Convenience Co., Ltd.

Sales recorded on the installment basis were 0.2% and 0.3% of operating revenues in 2022 and 2021, respectively.

Business: Single-person moving and transportation of large furniture and appliance

Annual maturities of installment receivables at March 31, 2022, and related amortization of deferred profit on installment sales are as follows:

Reason for business divestiture

Millions of Yen

As one of the leading companies in the moving industry, ART regards moving as a service business and is highly regarded

Thousands of U.S. Dollars

Deferred Profit on
Installment Sales

Deferred Profit on
Installment Salesby customers for providing various services that reflect their needs. In recent years, it is expanding its business domains

Year Ending March 31

with the aim of becoming a company that not only provides moving service but also proposes better lifestyles. YHC pro-

2023

¥22,061¥2,147$180,255$17,543vides Single-Person Moving (simple and easy moving service for single-person) and Household TA-Q-BIN (delivery service

2024

10,863

1,185

88,7599,682

for large furniture and appliance) to realize easy and secure moving of living space.

2025

6,460

579

52,781

4,730

2026

3,537

283

28,901

2,309

moving market. The Company determined that both companies would be able to provide a diverse range of services that

2027

1,869

147

15,2701,203

meet diverse needs, from customers with few packages to customers with many packages by utilizing each other’s

2028 and thereafterstrengths, and higher quality and more efficient transportation services by utilizing networks of both companies throughTotal

In October 2020, both companies began considering collaboration to further improve convenience for customers in the

Receivables

Receivables

3,265

373

26,675

3,050¥48,055¥4,714$392,641$38,517

approximately six months of study and collaboration such as reciprocal customer referrals and utilizing the businessresources of both companies. The Company concluded the share transfer contract with the aim of realizing them.

7.
Date of business divestiture

INVENTORIESInventories at March 31, 2022 and 2021, consisted of the following:

January 17, 2022 (deemed date: March 31, 2022)

Thousands of
U.S. Dollars

Millions of Yen

Legal form of the business divestiture

2021

2022

Transfer of shares for which the consideration received is only assets such as cash, etc.

Merchandise2022¥  187¥  392

167

118

1,369

Work in process$ 1,527

Outline of Accounting Treatment

Raw materials and supplies

1,862

1,771

15,212Gain or loss from the transaction

Total¥2,216¥2,281$18,108

Loss on sales of shares of subsidiaries: ¥2,673 million ($21,837 thousand)Appropriate book value of assets and liabilities related to the transferred business and its main breakdown

8. INVESTMENT SECURITIESMillions of Yen

Thousands of
U.S. Dollars

Current assets¥10,655$ 87,055

Long-lived assets

1,266

10,341

Total assets¥11,921$ 97,396

Current liabilities¥ (5,003)$(40,877)(467)(3,819)¥ (5,470)$(44,696)

Long-term liabilities
Total liabilities

Investment securities as of March 31, 2022 and 2021, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen
2022

2021

¥21,562¥35,833$176,175

3,813

931

31,1562022

Non-current:
Marketable equity securities
Non-marketable equity securities
Other
Total

8,567

3,239

69,997¥33,942¥40,003$277,328

Accounting treatment

The difference between the book value of the transferred shares for consolidated purposes and the selling price isrecorded as loss on sales of shares of subsidiaries in other expenses in the consolidated statement of income.
Reportable Segment in Which the Divested Business Was Included

Other segment

15

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report

16

Notes to Consolidated Financial Statements
Information regarding each category of the securities classified as available-for-sale at March 31, 2022 and 2021, is as follows:
Millions of Yen

Short-term bank loans at March 31, 2022 and 2021, consisted of notes to banks and bank overdrafts. The weighted-aver-

2022
Cost

Unrealized Gains

Unrealized Losses¥11,572¥653

Fair Valueage interest rates applicable to the bank loans as of March 31, 2022 and 2021, were approximately 0.055% and 0.073%,
respectively.

Securities classified as:
Available-for-sale: Equity securities

10. BANK LOANS AND LONG-TERM DEBT

¥10,643¥21,562

Long-term debt at March 31, 2022 and 2021, consisted of the following:

Millions of Yen
Cost

Unrealized Gains

Unrealized Losses¥21,635¥644

Fair Value

Securities classified as:
Available-for-sale: Equity securities¥14,842¥35,833

2022
Unrealized Gains

Unrealized Losses$94,553$5,339Fair Value

2021

2022

0.160% to 0.299% loans from banks due 2021 to 2022
Lease obligations

2022¥14,000
31,154$252,382

30,88845,154

252,382(4,850)(19,055)(39,631)¥26,038¥26,099$212,751

Millions of Yen

Thousands of
U.S. Dollars

2023¥ 4,850$ 39,631

2024

4,330

35,377

2025

3,255

26,601

2026

2,198

17,962¥30,888

Total
Less current portion

Thousands of U.S. Dollars
Cost

Thousands of
U.S. Dollars

Millions of Yen

2021

Total

Securities classified as:
Available-for-sale: Equity securities$86,961$176,175

Information for available-for-sale securities, which were sold during the years ended March 31, 2022 and 2021, is as follows:
Millions of Yen
March 31, 2022

Proceeds

Realized Gains

Realized Losses

Available-for-sale:
Equity securities¥18,638¥14,431

¥—

Other
Total

¥18,638¥14,431¥—Annual maturities of long-term debt at March 31, 2022, are as follows:Year Ending March 31

2027

1,528

12,4832028 and thereafter

14,727

120,328

Total¥30,888$252,382

Millions of Yen
March 31, 2021

Proceeds

Realized Gains

Realized Losses¥—

Available-for-sale:
Equity securities

¥ 1

¥—

Other

15

2

¥16

¥  2

Total

The Group has defined benefit retirement plans and defined contribution retirement plans for employees.
¥—

Proceeds

Realized Gains

Realized Losses$152,286$117,908$—$152,286$117,908

$—

Other
Total

and certain other factors. Such retirement benefits are made in the form of a lump-sum severance payment from theCompany or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger

Available-for-sale:
Equity securities

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

Thousands of U.S. Dollars
March 31, 2022

11. RETIREMENT AND PENSION PLANS

payments if the termination is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages exceeding the standard retirement age.

Loss on valuation of available-for-sale securities for the year ended March 31, 2022 and 2021, were ¥49 million ($398
thousand) and ¥355 million, respectively.

In addition, the Company resolved to revise retirement benefit plan of the Group in April 2021. Based on the resolution,
the Group has changed benefit levels of the lump-sum benefit plan with July 2021 as the date of revision with respect to
its regulations and October 2021 as the date on which the regulations take effect, and carried out the transition fromdefined benefit corporate pension plan to defined contribution pension plan.
As a result, with respect to past service costs incurred due to changes made to benefit levels of the lump-sum benefit

9. LONG-LIVED ASSETSThe Group reviewed its long-lived assets for impairment as of the years ended March 31, 2022 and 2021. As a result, theGroup recognized an impairment loss of ¥2,420 million ($19,775 thousand) as other expense for the asset groups of thehead office and the Tokyo Regional Branch of Yamato Home Convenience Co., Ltd. and 6 other asset groups for the year

plan, the Group recorded loss on revision of retirement benefit plan of ¥14,999 million ($122,551 thousand) as otherexpense for the fiscal year ended March 31, 2022. Furthermore, with respect to gains and losses arising from the transition from defined benefit corporate pension plan to defined contribution pension plan, the Group recorded gain on transition of retirement benefit plan of ¥1,420 million ($11,601 thousand) as other income.

ended March 31, 2022, and ¥877 million as other expense for asset groups of idle assets of Yamato Transport Co., Ltd. and10 other asset groups for the year ended March 31, 2021, due to no future use, continuous operating losses of those units
or significant declines in market prices. The carrying amounts of the relevant asset groups were written down to theirrecoverable amounts. In the case where the net selling prices were used as recoverable amounts, idle assets were evaluated at zero, and the relevant asset groups other than idle assets were evaluated mainly based on Real Estate Appraisal
Standards, assessed value of fixed assets, and posted land prices. In the case where the recoverable amounts were measured at its value in use, the discount rates used for computation of present value of future cash flows for the years ended
March 31, 2022 and 2021, were 5.23% and 5.96%, respectively.

17

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report18

Notes to Consolidated Financial Statements
The components of net periodic benefit costs for the years ended March 31, 2022 and 2021, were as follows:(1) Defined Benefit Retirement Plans
The changes in defined benefit obligation for the years ended March 31, 2022 and 2021, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2021

2022

Balance at beginning of year
Service costThousands of
U.S. Dollars

Millions of Yen
2022

2021

¥14,317¥14,016

2022

2022

Service cost
Interest cost

169

177

1,381

(855)

(984)

(6,988)

(488)

3,897

¥183,859¥177,835$1,502,237

14,317

14,016116,976

Expected return on plan assets$116,976

169

177

1,381

Recognized actuarial (gain) loss

Actuarial loss arising during the year

1,849

1,129

15,109

Past service cost

14,999122,551

Retirement benefits paid

(9,901)(8,967)(80,894)

Gain on transition to defined contribution pension plans(1,420)(11,601)

Interest cost

Past service cost arising during the year

14,999122,551

OthersDecrease due to transition to defined contribution pension plans(52,271)(427,087)

Net periodic benefit costs

Decrease due to change in scope of consolidation
Balance at end of year

(1,544)(331)(12,612)¥151,477¥183,859$1,237,661

125

(621)

¥17,231$217,718

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

2021

2022

Thousands of
U.S. Dollars

Millions of Yen

Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year(76)
¥26,646

retirement plans for the years ended March 31, 2022 and 2021, were as follows:

The changes in plan assets for the years ended March 31, 2022 and 2021, were as follows:

2022(3,980)

2022

2021

2022

Actuarial (loss) gain¥(7,510)¥13,337$(61,360)

Total¥(7,510)¥13,337$(61,360)¥112,181¥ 98,728$ 916,584

855

984

6,988

Actuarial gain arising during the year

1,334

10,564

10,896

Contributions from the employer

3,827

4,540

31,271

Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect ofRetirement benefits paid

(2,034)(2,244)(16,620)

defined benefit retirement plans as of March 31, 2022 and 2021, were as follows:

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

Decrease due to change in scope of consolidation(1,654)(391)(13,511)¥ 57,351¥112,181$ 468,593

Expected return on plan assets

Balance at end of year

(467,015)

Thousands of
U.S. Dollars

Millions of Yen
2021

2022

Unrecognized actuarial gain¥406

¥8,108$3,317

Total

¥406

¥8,108$3,317

2022

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2022 and 2021, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2021

2022

Defined benefit obligation of funded plan2022

¥ 12,935¥  66,676$  105,691(57,351)(112,181)(468,593)(44,416)(45,505)(362,902)

Defined benefit obligation of unfunded plan

138,542

117,183

1,131,970

Net liability arising from defined benefit obligation¥ 94,126¥  71,678$  769,068

Plan assets

Thousands of
U.S. Dollars

Millions of Yen

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

2022

2021

¥94,142¥71,835$769,196

(16)

(157)

(128)

¥94,126¥71,678$769,068

2021

2022

General accounts

57%

30%

Debt investments

22

23

Equity investments

24

Others

21

23

Total

100%

100%

Assumptions used for the years ended March 31, 2022 and 2021, were set forth as follows:2022

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

Plan assets as of March 31, 2022 and 2021, consisted of the following:

2021

2022

Discount rate

0.1%

0.1%

Expected rate of return on plan assets

1.0%

1.0%

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

(2) Defined Contribution Retirement Plans
The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2022
and 2021, were ¥6,886 million ($56,263 thousand) and ¥3,060 million, respectively.

19

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report20Notes to Consolidated Financial Statements(3) Other Items
The effect of partial transition from defined benefit corporate pension plans to defined contribution pension plans for theyear ended March 31, 2022, was as follows:
Millions of Yen
2022

Thousands of
U.S. Dollars
2022

Decrease of defined benefit obligation¥ 52,271$ 427,087

Decrease of plan assets(57,158)(467,015)

Recognized actuarial gain

6,307

51,529¥  1,420$  11,601

Total

12.		 ASSET RETIREMENT OBLIGATIONS

Balance at beginning of year
 Additional provisions associated with the acquisition of property,
plant and equipment

reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional
paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts within equity undercertain conditions upon resolution of the shareholders.

c. Treasury Stock
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution
to the shareholders, which is determined by a specific formula. The Companies Act also provides that companies canpurchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented asa separate component of equity.

14.		 INCOME TAXESThe changes in asset retirement obligations for the years ended March 31, 2022 and 2021, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

equals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal

2022

2021

2022

¥9,646¥8,927$78,814

456

840

3,722

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, 2022 and 2021.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets
and liabilities at March 31, 2022 and 2021, were as follows: Reconciliation associated with passage of time

105

107

861

 Reconciliation associated with changes in accounting estimates

(138)

(19)

(1,126)

Deferred tax assets: Reduction associated with settlement of asset retirement obligations

(138)

(206)

(1,130)   Accrued expenses

(3)

(3)

(26)

¥9,928¥9,646$81,115 Others
Balance at end of year

Changes in accounting estimates were recorded as it became evident that the estimate of the discounted cash flows
required for future asset retirement would change at the beginning of the year. A reconciliation has been prepared for thechange, which resulted in a decrease of the asset retirement obligation for the years ended March 31, 2022 and 2021, by¥138 million ($1,126 thousand) and ¥19 million, respectively.

13.		EQUITY

Thousands of
U.S. Dollars

Millions of Yen
2022

2021

2022

¥ 11,871¥ 12,265$  96,996   Legal welfare expense

1,970

2,027

16,097  Enterprise tax

1,958

2,312

15,995

510

492

4,171

   Tax loss carryforwards

3,656

11,59329,869   Liability for employees' retirement benefits

29,22924,591

238,818   Loss on valuation of land

20,48520,759167,371   Loss on impairment of long-lived assets

3,856

4,326

31,505   Loss on valuation of investment securities

1,062

1,167

8,680

  Unrealized profit

3,812

3,047

31,150

398

417

3,249

   Allowance for doubtful accounts   Loss on valuation of telephone subscription rights

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

8,679

8,251

70,915   Total of tax loss carryforwards and temporary differences

87,486

91,247

714,816

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

   Less valuation allowance for tax loss carryforwards(3,651)(11,588)(29,835)   Less valuation allowance for temporary differences(23,915)(26,637)(195,397)   Total valuation allowance(27,566)(38,225)(225,232)   Deferred tax assets¥ 59,920¥ 53,022$ 489,584¥  (2,756)¥  (5,807)$  (22,517)(4,880)(6,784)(39,874)   Deferred tax liabilities¥  (7,636)¥(12,591)$  (62,391)

Deferred tax assets—net¥ 52,284¥ 40,431$ 427,193

Deferred tax liabilities:   Unrealized gain on available-for-sale securities  Otherb. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capital

21

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report22Notes to Consolidated Financial Statements
16.		 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESThe expiration of tax loss carryforwards, the related valuation allowances and the resulting net deferred tax assets as ofMarch 31, 2022, are as follows:
Millions of Yen

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

2023¥   41¥   (41)

2024

45

(45)

2025

91

(91)

2026

86

(86)

2027

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards¥—$—(2)	Nature and Extent of Risks Arising from Financial Instruments and the Risk Management for Financial Instruments
Receivables such as notes and accounts receivable and installment sales receivable are exposed to customer credit risk.
Therefore, the Group minimizes customers’ credit risk by monitoring collections and accrued receivables at due dates.
Investment securities are mainly equity securities of the companies with which the Group has business relationships
or capital alliances. Such securities are exposed to the risk of market price fluctuations.
Most payment terms of payables such as notes and accounts payable are less than one year.
Short-term bank loans and long-term bank loans are mainly related to a financial business. Bank loans are mainly variable interest rate loans.
Accounts payable and bank loans exposed to liquidity risks are managed by each company of the Group, such as
through fund settlement, bookkeeping, monitoring of the balances outstanding, and managing cash flows.
(3) Fair Value of Financial Instruments
Since variable factors are incorporated in the calculation of the fair value of financial instruments, the fair value may change
due to the adoption of different assumptions, etc.
Fair value of financial instruments at March 31, 2022 and 2021, were as follows:

540

(540)

2028 and thereafter

2,853(2,848)5

Total¥3,656¥(3,651)¥ 5

Thousands of U.S. Dollars

Year Ending March 31

Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

Less Valuation
Allowances for
Tax Loss
Carryforwards

2023$   332$   (332)

2024

371

(371)

2025

742

(742)

2026

699

(699)

(1) Group Policy for Financial Instruments
The Group uses financial instruments, mainly long-term debt including bank loans and bonds, in order to expand its business based on its investment plan to expand its network. Cash surpluses, if any, are invested in low risk financial assets.
Derivatives are not used for speculative purposes, but to manage exposure to interest fluctuation risk. Certain consolidated subsidiaries conduct installment sales operations.

Net Deferred Tax
Assets Relating
to Tax Loss
Carryforwards

2027

4,416

(4,416)2028 and thereafter

23,309(23,275)

34

Total

$29,869$(29,835)$34

Millions of Yen
March 31, 2022

Carrying Amount

Fair Value

Difference

Assets:Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated statement of income for the year ended March 31, 2021, was as follows:

Trade notes and accounts receivable, and contract assets   Allowance for doubtful accounts¥218,923(158)
218,765

2021¥218,777¥   12

42,405

46,956

4,551

21,562

21,562

6,668

10,127

15,00015,000Normal effective statutory tax rate

30.6%

Per capita levy of local taxes

3.4   Allowance for doubtful accounts(936)

Difference of tax rates for foreign subsidiaries

0.1   Deferred profit on installment sales(4,714)

Valuation allowance

2.6

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

0.3

Available-for-sale securities

Other—net

1.0

Shares of affiliates

Actual effective tax rate

38.0%

Installment sales receivable

Reconciliation between the normal effective statutory tax rates and the actual effective tax rates for the year ended
March 31, 2022, was omitted since the difference between both the rates was less than 5% of the normal effective statutory tax rates.

48,055

3,459

Liabilities:
Short-term loans

Millions of Yen
March 31, 2021

Carrying Amount

Fair Value

Difference

Assets:Trade notes and accounts receivable, and contract assets

15.		LEASES   Allowance for doubtful accounts

The Group leases certain building, machinery, computer equipment and other assets as the lessee.

Due within one year

Installment sales receivableThousands of
U.S. Dollars

2022

2021

¥ 7,496¥ 5,451(29)
212,737

Future rental payments under non-cancelable operating leases at March 31, 2022 and 2021, were as follows:
Millions of Yen¥212,766

2022   Allowance for doubtful accounts   Deferred profit on installment sales$ 61,245

Due after one year

22,60821,079184,721

Available-for-sale securities

Total¥30,104¥26,530$245,966

Shares of affiliates¥212,754¥   17

39,84244,6004,758

35,83335,833

7,003

13,194

6,191

34,00033,997(3)

45,643(1,020)(4,781)

Liabilities:
Short-term loans

23

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report24Notes to Consolidated Financial Statements
Thousands of U.S. Dollars
March 31, 2022

Carrying Amount

Fair Value

Thousands of U.S. Dollars
Difference

Assets:Trade notes and accounts receivable, and contract assets   Allowance for doubtful accounts$1,788,731(1,286)
1,787,445$1,787,542$    97

346,476

383,658

37,182Available-for-sale securities

176,175

176,175

Shares of affiliates

54,48182,746

122,559

122,559

Installment sales receivable

392,641   Allowance for doubtful accounts(7,648)   Deferred profit on installment sales(38,517)28,265

Liabilities:
Short-term loans

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

March 31, 2022

Due in One Yearor Less

Due after One Yearthrough Five Years

Cash and cash equivalents$1,492,316$      —

Trade notes and accounts receivable, and contract assets

1,788,404

327

180,255

185,711

26,675$3,460,975$186,038$26,675

Installment sales receivable
Total

Due after
Five Years$    —(5) Matters Concerning the Breakdown of the Fair Value of Financial Instruments by Level and Other Items
The fair value of financial instruments is classified into the following three levels based on the observability and materialityof the inputs used to calculate fair value.
Level 1 fair value: F air 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.

approximate fair value.
Financial instruments recorded on the consolidated balance sheet at fair value

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

Millions of Yen

accounts set up for trade notes and accounts receivable, and contract assets not settled in a short period of time.
Installment sales receivable is presented after deducting the relevant allowance for doubtful accounts and deferredprofit on installment sales.
Equity securities with no market price and investments in capital are not included in available-for-sale securities orshares of affiliates. The amount of these financial instruments recorded as investment securities on the consolidated balance sheet at March 31, 2022 and 2021, were ¥3,894 million ($31,820 thousand) and ¥1,014 million, respectively, and the

Fair Value
March 31, 2022

Level 1

Investments in partnerships and other similar entities that are recorded on the consolidated balance sheet at net
amount of equity interest are omitted. The amount of these investments recorded as investment securities on the consolidated balance sheet at March 31, 2022 and 2021, were ¥8,486 million ($69,333 thousand) and ¥3,156 million, respectively.

Level 3

Total

Available-for-sale securities:
Equity securities
Total assets¥21,562¥—¥—¥21,562¥21,562¥—¥—¥21,562

Thousands of U.S. Dollars

amount of these financial instruments recorded as investments in unconsolidated subsidiaries and affiliates on the consolidated balance sheet at March 31, 2022 and 2021, were ¥7,362 million ($60,154 thousand) and ¥5,225 million, respectively.

Level 2

Fair Value
March 31, 2022

Level 1

Level 2

Level 3

Total

Available-for-sale securities:
Equity securities
Total assets$176,175$—$—$176,175$176,175$—$—$176,175

Trade notes and accounts payable are omitted because most of them are due within one year and their carrying
Financial instruments other than those recorded on the consolidated balance sheet at fair value

amounts approximate fair value.

Millions of Yen
Fair Value(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen
Due in One Yearor Less

Due after One Yearthrough Five Years

Cash and cash equivalents¥182,645¥      —

Trade notes and accounts receivable, and contract assets

218,883

40

March 31, 2022

Installment sales receivable
Total

Due after
Five Years

March 31, 2022

Level 1

Level 2

Trade notes and accounts receivable, and contract assets¥      —

¥218,777

Installment sales receivable¥10,127¥265,733¥—¥275,860

Equity securities

10,127

10,12722,061

22,7293,265¥423,589¥22,769¥3,265

Short-term loans¥      —

¥ 15,000¥—¥ 15,000

Total liabilities¥      —

¥ 15,000¥—¥ 15,000

Due after One Yearthrough Five Years

Cash and cash equivalents¥241,523¥     —

Trade notes and accounts receivable, and contract assets

212,68680

Installment sales receivable

21,35821,9902,295

Installment sales receivable¥475,567¥22,070¥2,295

Shares of affiliates:

Financial Statements with Independent Auditor’s Report

46,956

Total assets

Due after
Five Years¥   —

Thousands of U.S. Dollars
Fair Value
March 31, 2022

Level 1

Trade notes and accounts receivable, and contract assets$     —

Equity securities

25

46,956¥218,777

Shares of affiliates:

Due in One Yearor Less

Total

Total

¥—

¥   —

Millions of Yen
March 31, 2021

Level 3

Level 2

Level 3

$1,787,542

Total

$—

383,658$1,787,542
383,658

82,74682,746

Total assets$82,746$2,171,200$—$2,253,946

Short-term loans$     —$  122,559$—$  122,559

Total liabilities$     —$  122,559$—$  122,559

Financial Statements with Independent Auditor’s Report26Notes to Consolidated Financial Statements
Available-for-sale securities and shares of affiliates

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

receivable, the period to maturity and the interest rate that takes into account credit risk for each receivable classified bycertain time periods and is classified as Level 2 fair value.

The fair value of installment sales receivable is determined using the discounted present value method based on the(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 Yearamount of the receivable, the period to maturity and the interest rate that takes into account credit risk for each receivable

Balance of receivables, contract assets and contract liabilities from contracts with customers

Installment sales receivableclassified by certain time periods and is classified as Level 2 fair value.
Millions of Yen
2022

Short-term loans

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

17.		 REVENUE RECOGNITION

Thousands of
U.S. Dollars
2022

Receivables from contracts with customers, beginning of fiscal year

¥178,323$1,457,007

Receivables from contracts with customers, end of fiscal year

188,005

1,536,112

Contract assets, beginning of fiscal year

4,146

33,878Contract assets, end of fiscal year

4,689

38,311

Contract liabilities, beginning of fiscal year

11,44493,507

Contract liabilities, end of fiscal year

12,887105,296(1) Information about Disaggregated Revenues from Contracts with Customers

RetailBusiness Unit

Transportation income
Logistical support income
Others
Revenues from contracts with customers

Millions of Yen

Contract assets are mainly recognized in TA-Q-BIN transactions and are recognized based on the estimated revenue from2022

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

Corporate
Business Unit

Other

¥1,144,359¥598,306

3,587

249,638

Internal segment revenues or transfers

Total¥1,793,633
253,225

28,18433,023

171,975

233,182

1,176,130

880,967

222,943

2,280,040

4,583

4,583

227,526

2,284,623

Other revenues
Total¥  50,968

1,176,130

880,967

with customers when the consolidated subsidiary’s rights to the consideration become unconditional.
Contract liabilities mainly relate to advances received from customers who have subscribed to the Kuroneko Member
Discount program for TA-Q-BIN transactions. Contract liabilities are reversed upon the recognition of revenue.
Among the revenues recognized during the fiscal year ended March 31, 2022, the amount included in the opening
balance of contract liabilities was ¥9,558 million ($78,097 thousand).
The amount of revenue recognized in the fiscal year ended March 31, 2022, from performance obligations satisfied inprior periods was not material.

(3,716)(42,691)(18,327)(64,734)

Operating revenues by reportable segments

1,172,414

838,276

209,199

2,219,889

Transaction prices allocated to remaining performance obligations

Intersegment revenues or transfers(279,017)(26,091)(121,163)(426,271)

The Group applies the practical expedient in noting transaction prices allocated to the remaining performance obligations¥  893,397¥812,185¥  88,036¥1,793,618

Operating revenues from external customers

Thousands of U.S. Dollars

mance obligations for which the entity is entitled to receive consideration directly corresponding to the value to the cus-2022

tomer of the portion of the obligation that has been performed by the entity to date. As a result, there were no significant

RetailBusiness Unit

Corporate
Business Unit

$ 9,350,105$4,888,521$  416,435 $14,655,061

Logistical support income

29,3112,039,691

2,069,002

Others230,277

269,815

1,405,144

1,905,236

9,609,693

7,198,027

1,821,579

18,629,299

37,44637,446

9,609,693

7,198,027

1,859,025

18,666,745(30,361)(348,804)(149,746)(528,911)

Operating revenues by reportable segments

9,579,332

6,849,223

1,709,279

18,137,834

Intersegment revenues or transfers(2,279,741)(213,177)(989,976)(3,482,894)

Operating revenues from external customers$ 7,299,591$6,636,046

Transportation income

Revenues from contracts with customers
Other revenues
Total
Internal segment revenues or transfersand does not include performance obligations with original expected contractual terms of one year or less and perfor-

Other

Total

performance obligations that should have been noted as the transaction price allocated to the remaining performanceobligations.
The performance obligations with original expected contractual terms of one year or less mainly relate to TA-Q-BIN
transactions in the Retail Business Unit.
In addition, there were no material amounts of consideration arising from contracts with customers that were notincluded in the transaction price.

$  719,303 $14,654,940

Notes: “Other” includes Yamato Home Convenience Co., Ltd. (lifestyle support services), 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.

27

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report28Notes to Consolidated Financial Statements
18.		 OTHER COMPREHENSIVE INCOME

20.		 SEGMENT INFORMATIONThe components of other comprehensive income for the years ended March 31, 2022 and 2021, were as follows:
Thousands of
U.S. Dollars

Millions of Yen
2022

2021

Adjustments arising during the year

¥ 10,727¥10,487$   87,647

Reclassification adjustments to profit or loss

(19,124)(72)(156,258)

Amount before income tax effect(8,397)

10,415(68,611)

Income tax effect

2,982(2,489)24,366¥ (5,415)¥ 7,926$ (44,245)¥  1,437¥  (994)$  11,740

2022

Unrealized gain on available-for-sale securities:

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

(643)

Total

(5,254)¥   794¥  (994)$   6,486¥ (1,528)¥ 9,435$ (12,485)

Reclassification adjustments to profit or loss

(5,982)

3,902(48,875)

Amount before income tax effect(7,510)13,337(61,360)

Income tax effect

2,227(3,915)

18,200¥ (5,283)¥ 9,422$ (43,160)¥   111¥     1$    910

Remeasurements of defined employees' retirement benefit plans:
Adjustments arising during the year

Total
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 (loss) income

(3)

2

(24)

¥   108¥     3$    886¥ (9,796)¥16,357$ (80,033)(1) Description of Reportable Segments
The Group identifies operating segments as components of entity for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to beallocated to the segments and assess their performance.
Under the Company, which is the pure holding company, the Group manages business operations by customer segment and operates through group management structure consisting of the Retail Business Unit, which manages the Retail
Business Division that provides delivery services for individual customers and mid-to-small sized corporations, theCorporate Business Unit, which manages the Corporate Business Division, the Global SCM Business Division, and the EC
Business Division, that provide transportation services etc. for large corporations, and Other.
The Group defines the reportable segments as follows:
Retail Business Unit:

Delivery services for individual customers and mid-to-small sized corporations

Corporate Business Unit: 	Transportation services for large corporations, planning and operation of logistics centers, customs services, air cargo agency services
Other:		Development and operation of IT systems, car maintenance services, sales of fuel, non-life
insurance agency services, cargo vehicle transportation services(2) 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.”

19.		 EARNINGS PER SHARE
Basic earnings per share (“EPS”) for the years ended March 31, 2022 and 2021, was as follows:
Millions of Yen
Year Ended March 31, 2022

Basic EPS—Profit attributable to common shareholders

Thousands ofSharesProfit Attributable to Weighted-average
Owners of Parent
SharesYen

U.S. Dollars
EPS¥55,956

370,488¥151.03¥56,701

374,150¥151.55$1.23

Year Ended March 31, 2021

Basic EPS—Profit attributable to common shareholders

29

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report30Notes to Consolidated Financial Statements(3) Information about Segment Revenues, Segment Profit, Segment Assets, and Other Items
Millions of Yen

2022
RetailBusiness Unit

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

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated¥  893,397¥812,185¥ 88,036¥1,793,618¥        
—279,017

26,091

121,163426,271(426,271)¥1,172,414¥838,276¥209,199¥2,219,889¥(426,271)¥1,793,618¥   44,464¥ 17,178¥ 16,559¥   78,201¥  (1,001)¥   77,200

749,718

194,571

156,573

1,100,862(14,007)

1,086,855

17,53813,265

3,812

34,615909

35,524

630

6,668

7,298

5,662

12,96056,587

12,06675,8992,673

78,572

7,246¥1,793,618

Millions of Yen

2021
RetailBusiness Unit

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

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated¥  882,537¥733,191¥ 80,139¥1,695,867¥     —

313,736

48,842

116,206

478,784(478,784)¥1,196,273¥782,033¥196,345¥2,174,651¥(478,784)¥1,695,867¥   50,806¥ 40,317¥  6,989¥   98,112¥  (5,990)¥   92,122

762,635

176,604

165,253

1,104,492(14,501)

1,089,991

29,291

13,6394,501

47,431

1,431

48,862

430

8,602

9,032

2,159

11,191

34,413

5,875

47,956

7,476

55,432

7,668¥1,695,867

Thousands of U.S. Dollars

2022
RetailBusiness Unit

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

Corporate
Business Unit

Other

Total

Reconciliation

Consolidated$14,654,940$7,299,591$6,636,046$  719,303$14,654,940$           —2,279,741

213,177

989,976

3,482,894(3,482,894)$9,579,332$6,849,223$1,709,279$18,137,834$(3,482,894)$14,654,940$  363,294$  140,357$  135,298$   638,949$    (8,182)$   630,767

6,125,642

1,589,765

1,279,296

8,994,703(114,443)

8,880,260

143,301

108,381

5,149

54,481

462,348

98,59031,14459,201

282,826

7,428

290,254

59,63046,258105,888

620,139

21,843641,982

Notes:	“Other” includes Yamato Home Convenience Co., Ltd. (lifestyle support services), 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) R econciliations of segment profit for the years ended March 31, 2022 and 2021, of ¥1,001 million ($8,182 thousand) and ¥5,990 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 ¥10,384 million ($84,845 thousand) and ¥19,578 million, and intersegment eliminations of ¥9,383 million ($76,663
thousand) and ¥13,588 million, respectively.
		 (2) R econciliations of segment assets at March 31, 2022 and 2021, of ¥14,007 million ($114,443 thousand) and ¥14,501 million, respectively, include
intersegment eliminations of assets and liabilities of ¥108,626 million ($887,540 thousand) and ¥191,758 million, and group-wide assets which are
not allocated to each reportable segment of ¥94,619 million ($773,097 thousand) and ¥177,257 million, respectively.
		 (3) R econciliations of investments in entities accounted for using equity method at March 31, 2022 and 2021, of ¥5,662 million ($46,258 thousand)and ¥2,159 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, 2022 and 2021, of ¥2,673 million ($21,843
thousand) and ¥7,476 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, 2022 and 2021, of ¥749,718 million ($6,125,642 thousand) and ¥762,635 million, respectively,
include assets of the Functional Divisions of Yamato Transport Co., Ltd. of ¥524,780 million ($4,287,772 thousand) and ¥543,672 million, respectively.
	Increase of tangible and intangible fixed assets of the Retail Business Unit for the years ended March 31, 2022 and 2021, of ¥56,587 million ($462,348
thousand) and ¥34,413 million, respectively, include the amount of increase of the Functional Divisions of Yamato Transport Co., Ltd. of ¥36,936 million($301,789 thousand) and ¥18,588 million, respectively.

31

Financial Statements with Independent Auditor’s Report(4) Changes in Reportable Segments
Effective from the fiscal year ended March 31, 2022, the Company has changed its classification of reportable segments
to reflect its transition to a management structure consisting of four Business Divisions (Retail, Corporate, Global SCM,
and EC) and four Functional Divisions in April 2021.
The change mainly involves transition to a dual business unit structure consisting of the Retail Business Unit and the
Corporate Business Unit based on customer segments from the previous six operating segment structure based on categories of business.
The segment information for the year ended March 31, 2021, was prepared and presented according to the new classification of reportable segments.
(5) Application of Accounting Standard for Revenue Recognition, etc.
The Company has changed its method of calculating profit or loss of operating segment because it has changed its
accounting method for revenue recognition due to application of the Accounting Standard for Revenue Recognition, etc.
from the beginning of the fiscal year ended March 31, 2022, as stated under Note 4, “Accounting Change.”
As a result, for the fiscal year ended March 31, 2022, segment revenues and segment profit of the Retail Business
Unit each decreased by ¥52 million ($422 thousand); segment revenues and segment profit of the Corporate Business
Unit increased by ¥369 million ($3,014 thousand) and decreased by ¥150 million ($1,227 thousand), respectively; and segment revenues and segment profit of Other decreased by ¥2,399 million ($19,602 thousand) and increased by ¥118 million($962 thousand), respectively, compared with previous method.
(6) Changes in Depreciation Method for Property, Plant and Equipment and Changes in Useful Life
Effective from the fiscal year ended March 31, 2022, the Company has changed to the straight-line method as its depreciation method for property, plant and equipment (excluding leased assets), as stated under Note 4, “Accounting Change.” In
addition, the Company has also changed useful lives of some vehicles, and applied this change prospectively.
As a result, for the fiscal year ended March 31, 2022, segment profit of the Retail Business Unit, Corporate Business
Unit and Other increased by ¥10,995 million ($89,832 thousand), ¥1,735 million ($14,179 thousand), and ¥346 million($2,826 thousand), respectively, compared with previous method.
[Related Information about Reportable Segments](1) Information about Products and Services
Operating revenues from customers for the years ended March 31, 2022 and 2021, were as follows:
Millions of Yen
2021

2022
TA-Q-BIN¥1,322,534

Kuroneko DM-Bin¥54,323

Other¥416,761

Total

TA-Q-BIN¥1,793,618¥1,269,483

Kuroneko DM-Bin¥53,010

Other¥373,374

Total¥1,695,867

Thousands of U.S. Dollars
2022
TA-Q-BIN$10,805,902

Kuroneko DM-Bin$443,852

Other

Total

$3,405,186 $14,654,940(2) Information about Geographical Areas
The disclosure of operating revenues by geographical areas for the years ended March 31, 2022 and 2021, 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, 2022 and 2021, were omitted
since property, plant and equipment in Japan account for more than 90% of the amount of property, plant and equipmentin the consolidated balance sheet.

Financial Statements with Independent Auditor’s Report32

Notes to Consolidated Financial Statements(3) Information about Loss on Impairment of Long-Lived Assets by Reportable Segments
Loss on impairment of long-lived assets by reportable segments for the years ended March 31, 2022 and 2021, were as
follows:
Millions of Yen

Loss on impairment oflong-lived assets¥—

Corporate
Business Unit

¥701

Other

Total

¥1,719Eliminations orGroup-Wide¥2,420¥—Consolidated

2021

Loss on impairment oflong-lived assets¥332

Corporate
Business Unit

Other

¥498

Total

¥47

Eliminations orGroup-Wide

¥877

¥—

Consolidated¥877

Thousands of U.S. Dollars
2022
RetailBusiness Unit

Loss on impairment oflong-lived assets$—

Corporate
Business Unit

$5,726

Other

Total

$14,049$19,775

Eliminations orGroup-Wide$—

Convenience Co., Ltd. was excluded from the scope of consolidation.
selling price and the payment for sales of shares are as follows:¥2,420Millions of Yen
RetailBusiness Unit

In January 2022, the Company sold 51% of the shares of Yamato Home Convenience Co., Ltd. As a result, Yamato Home
The assets and liabilities of Yamato Home Convenience Co., Ltd. at the time of sales and reconciliation between the2022
RetailBusiness Unit

22.		 SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF CASH FLOWSMillions of Yen
2022

2022

Current assets¥10,655$ 87,055

Long-lived assets

1,266

10,341

Current liabilities(5,003)(40,877)

Long-term liabilities(467)(3,819)Investment account after sales of shares(3,161)(25,823)

Loss on sales of shares(2,673)(21,837)(617)(5,040)

Other
Consolidated$19,775

Selling price
Incidental cost for sales of shares
Cash and cash equivalents
Net payment for sales of shares21.		 RELATED PARTY DISCLOSURES

Affiliated company

Summary of Transaction

Paid-in CapitalBusiness

Ratio of Voting Rights

Relation with Related Party

Yamato Lease
Co., Ltd

Toshima-ku,
Tokyo¥30 million

GeneralLeasing

40.0%

Loan for operating fundInterlocking directorate

Transacted Amount¥94,273¥ (7,313)$(59,752)

The assets and liabilities of Yamato Lease Co., Ltd. at the time of sales and reconciliation between the selling price andAddress

the payment for sales of shares are as follows:
Millions of Yen
2021

Millions of Yen

Repayment of loan
for operating fund(907)
(58,845)In April 2020, the Company sold 60% of the shares of Yamato Lease Co., Ltd. As a result, Yamato Lease Co., Ltd. wasName of Company

Transactions during the year ended March 31, 2021

(111)
(7,202)

excluded from the scope of consolidation.

Transactions of the Group and related parties for the year ended March 31, 2021, were as follows:
Category

Thousands of
U.S. Dollars

Balance at March 31, 2021
Title of Account—Amount¥—Current assets¥ 93,168

Long-lived assets

14,055Current liabilities(99,275)

Long-term liabilities(2,820)Investment account after sales of shares(2,051)Gain on sales of shares

38

Other

4

Selling priceCash and cash equivalents
Net payment for sales of shares

3,119(3,603)¥   (484)23.		 SUBSEQUENT EVENT
Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2022, was approved at the Company’s Board of Directors
meeting held on May 17, 2022:

Year-end cash dividends, ¥23 ($0.19) per share*

Millions of Yen

Thousands of
U.S. Dollars¥8,440$68,963* The total cash dividends approved at the Company’s Board of Directors meeting held on May 17, 2022, include the dividends of ¥11 million ($91 thousand) for
the share of the Company held by “Board Benefit Trust (BBT)”.

33

Financial Statements with Independent Auditor’s Report

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

35

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report36Independent Auditor’s Report

37

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report38Independent Auditor’s Report

39

Financial Statements with Independent Auditor’s Report

Financial Statements with Independent Auditor’s Report