Corporate Governance

(As of April 19th,2024)

Basic Position on Corporate Governance

Based on the Yamato Group Corporate Philosophy, the Company and its group companies (the "Group") has been engaging in business activities in line with laws and social norms, and promoting management in conformity with compliance.
Moreover, positioning the effective use of the Group's business resources to maximize its corporate value as one of utmost management priorities, the Group has been implementing measures to enhance its management structure as an approach to corporate governance.

Statement of Compliance

Dear stakeholders,

We, the Yamato Group, believe our business contributes to the social infrastructure and we conduct our business in accordance with our Core Values which has always been constant. Our Management Philosophy further defines that the Yamato Group will contribute to the prosperity of the society through our business activities.

By conducting ourselves in accordance with the Management Philosophy, the Yamato Group aims to continue to be the trusted choice of our stakeholders, including our customers. Each and every one of us are committed to comply with the laws and regulations and will continue acting in good faith and according to high ethical standards.

We, the Yamato Group, have established a Corporate Stance which details the conduct of the company based on the Management Philosophy. The Employee Code of Conduct has also been established as a guideline for the right behavior expected of each employee of the Yamato Group. Each officer and employee of the Yamato Group will fully understand and adhere to the Corporate Stance and Employee Code of Conduct while conducting our business activities.

I hereby declare that I will lead the Yamato Group and its employees and manage the company, setting compliance as the highest priority, with sincere actions based on high ethical standards so as to be a corporation trusted by the society.

April 1, 2019
Yamato Holdings Co., Ltd.
Representative Director and President

Status of Corporate Governance Provisions

Directors and Board of Directors

The Board of Directors, Management Committee and Executive Conference serve as administrative organs involved in business decision-making, execution, and supervision of the Yamato Group. This management structure enables decisions to be made swiftly and precisely on important business matters. The number of Board members cannot exceed 12 as stipulated in the articles of incorporation of Yamato Holdings. The Board comprised eight directors, five of whom are outside directors. The term of office for directors has been set at one year in order to clarify management responsibilities for each fiscal year.

Audits by Audit & Supervisory Board Members

The Audit & Supervisory Board is made up of two full-time Audit & Supervisory Board member and three outside Audit & Supervisory Board members. Audit & Supervisory Board members attend meetings of the Board of Directors and other important meetings to audit the execution of duties by the directors, and otherwise endeavor to improve the soundness of management and the trust of the public. A full-time staff member has been appointed to assist the Audit & Supervisory Board members to put in place a framework that enables the Audit & Supervisory Board members to smoothly carry out their functions. In addition, Group Auditors'Liaison Meetings are held periodically for the full-time Audit & Supervisory Board members of the major operating companies to confer on auditing policies and procedures, exchange information, and otherwise enhance collaboration. Meetings with internal auditors are also held periodically to exchange information.

Internal Audits

The Group has built a system in which internal audits are performed by a total of 173 internal auditors throughout the Group who belong to an independent organization with internal audit functions led by the Company’s Internal Audit Officer. Based on annual audit plans, they audit whether the business of the entire Group is executed appropriately and efficiently and report the results to the Board of Directors and the Audit & Supervisory Board. Moreover, the Group Internal Auditing Committee meets regularly to discuss with the internal auditors issues and remedies based on audit policies and results. The Committee also works to improve and enhance the effectiveness of internal control over financial reporting in cooperation with the internal control divisions of Group companies.

Accounting Audits

As the Group's appointed Independent Auditor, Deloitte Touche Tohmatsu LLC holds regular meetings with Audit & Supervisory Board members and conducts effective accounting audits. Accounting audits are performed by three certified public accountants, Koichi Yano, Shinji Seki and Yusuke Kumei assisted by another 10 certified public accountants and 34 other staff members.

Corporate Governance Organizational Chart

The current status of provision for oversight of business execution and management, internal control and related functions at Yamato Holdings is illustrated in the figure below.

Corporate Governance Framework