Summary of Financial Results

Economic activities which had been stagnant due to the global spread of COVID-19 began to reopen. Whereas business sentiment has been showing signs of improvement, particularly in the manufacturing industry, the outlook for economic recovery both in Japan and overseas remains unknown particularly with the pandemic resurging at home and abroad amid uncertainties as to the status of COVID-19 transmission ahead and timing as to when the pandemic might subside. Meanwhile, COVID-19 has accelerated growth in the e-commerce domain across all industries amid a scenario of changes in lifestyles and the business environment brought about by developments such as companies promoting telework arrangements and a shift to online services in the fields of medicine and education.

Under such circumstances, the Yamato Group has drawn up the Group’s medium term management plan,“One Yamato 2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year. Grounded on progress and results achieved with respect to initiatives implemented based on our transformation plan “YAMATO NEXT100, the “One Yamato 2023” plan takes into account the accelerating industry-wide shift to e-commerce prompted by rapidly changing lifestyles and distribution structure. Under the plan, the Group will aim to provide value to our individual and corporate clients, as well as society as a whole. To such ends, we will facilitate transformation across the entire supply chain extending from suppliers and manufacturers to consumers, fully leveraging our business resources concentrated under our concept of serving as a truly “One Yamato.”

During the fiscal year ending March 31, 2022, we will continue to address growing e-commerce demand by accelerating development of our e-commerce delivery networks, improving pick-up convenience, and providing solutions tailored to e-commerce companies and sellers. We will also increase operating revenue by organically combining TA-Q-BIN, e-commerce delivery, and middle-mile networks with our network of business locations, streamlining not only distribution but also backyard operations related to stores and e-commerce operations, and focusing on providing value across the entire supply chain through efforts that involve reducing sales opportunity loss and optimizing inventories.

As for expenditures, we will continue to focus on optimizing costs, which will involve enlisting data analysis with respect to making optimal allocations of management resources and further streamlining trunk-route transportation. In so doing, we will take into account critical challenges with respect to achieving greater productivity while addressing increasing demand particularly in e-commerce given the shrinking labor population and other such changes in the business environment.

We expect operating revenue will be 1,775.0 billion yen, with operating profit at 95.0 billion yen, ordinary profit at 95.0 billion yen, and profit attributable to owners of parent at 53.0 billion yen.