Yamato Holdings Co., Ltd. · TSE:9064
Yamato — FY2019 Earnings Presentation
28 slides from Yamato's earnings presentation, May 7, 2019
Slide 1: Yamato Group Consolidated Financial Summary FY ended March 31, 2019
YAMATO GROUP CONSOLIDATED FINANCIAL SUMMARY for the Fiscal Year Ended March 31, 2019 YAMATO HOLDINGS CO., LTD. May 7, 2019
Slide 2: Financial Results for FY Ended March 2019 (Overview)
1. Financial Results for the Fiscal Year Ended March 31, 2019 (Overview) (1) Steady progress toward achieving financial performance targets of the medium-term management plan - Consolidated operating revenue YoY +5.6% Consolidated operating profit YoY +63.5% (2) Profit decreased in the fourth quarte
Slide 3: Plan for the Fiscal Year Ending March 2020 (Outline)
(1) (2) (3) (4) (5) (6) 2. Plan for the Fiscal Year Ending March 31, 2020 (Outline) Steady implementation of “reforming working styles” and “structural reform’ initiatives Achievement of record-high profits (¥72.0 billion) while actively investing in growth Continued “adequate pricing initiatives” a
Slide 4: Progress toward medium-term management plan targets
(1) We are making steady progress toward achieving financial performance targets of the medium-term management plan. (2) Expenses have been increasing as we promote reforming working styles and structural reform initiatives. Still, we have achieved ongoing profit increases and improvement in profit
Slide 5: Delivery Business building foundations for earnings growth
(1) In the Delivery Business, we have been steadily building foundations for achieving earnings growth. (2) In the fiscal year ended March 31, 2019, we continued with adequate pricing initiatives and focused on expanding collection and delivery capacity through efforts that included employing driver
Slide 6: Promoting adequate pricing initiatives
(1) Promoting adequate pricing initiatives from the fiscal year ended March 31, 2018 (2) As a result, TA-Q-BIN unit price excluding Nekopos (TA-Q-BIN + TA- Q-BIN Compact) increased from ¥574 of the fiscal year ended March 31, 2017 to ¥702 in the fiscal year ended March 31, 2019. (3) As we continue p
Slide 7: Controls on working hours
(1) We have achieved steady progress in terms of implementing thorough controls on working hours and making drastic improvement regarding working hours. (2) We have massively reduced the number of employees working excessive overtime (more than 80 hours per month) in comparison with prior to making
Slide 8: Overtime hours per employee decreased by 30% or more
Overtime hours per employee have decreased by 30% or more in comparison with levels prior to making improvements.
Slide 9: Improving working conditions
(1) We have been placing focus on improving working conditions through efforts that include encouraging a work-life balance and renovating facilities with the aim of acting as a company that is employee-friendly with rewarding job opportunities. (2) We have adopted arrangements for new working style
Slide 10: Employee satisfaction improved
(1) Employee satisfaction has improved in comparison with levels prior to making improvements, according to findings of our periodic working styles awareness surveys. The survey indicators suggest that improvement has been achieved on average, particularly with respect to the “employee-friendly” ben
Slide 11: Percentage of employees who resign decreasing
(1) The percentage of employees who resign has been decreasing due to “Reforming Working Styles” initiatives centered on management. (2) We are continuing to improve working conditions with the aim of acting as a company that is employee-friendly with rewarding job opportunities.
Slide 12: Strengthening Group governance
Given that governance underpins robust corporate management, we will strive to further strengthen governance of the Group overall. This will involve building mechanisms and frameworks capable of appropriately taking on the task of risk management, spearheaded by the Group Governance Project which wa
Slide 13: Last fiscal year of medium-term management plan
For the last fiscal year of medium-term management plan, although we expect to incur an increased level of expenses in structural reform and growth initiatives, we will enlist the efforts of the entire Group to establish the strong foundations needed for achieving sustainable earnings growth for NEX
Slide 14: Flexible shareholder returns with consistent dividends
(1) We will provide flexible shareholder returns while placing emphasis on providing consistent dividends. We forecast dividends for the fiscal year ending March 31, 2020 of ¥31 per share. (2) We are focusing on growth investment geared to achieving earnings growth over the medium- to long-term.
Slide 15: Non-operating income and loss
[Consolidated Financial Results for the Fiscal Year Ended March 2019] Non-operating income and loss ↓ ¥4.0 billion (1) Non-operating profit ¥2.3 billion (2) Non-operating expenses ¥6.4 billion • Investment loss in entities accounted for using equity method ¥4.8 billion
Slide 16: YoY analysis of consolidated operating revenue
[YoY analysis of consolidated operating revenue (Fiscal year ended March 2019)] (1) Delivery Business (Revenue increase) Positive: TA-Q-BIN total delivery volume: ↓ 1.8%, unit price ↑ 11.2% TA-Q-BIN / TA-Q-BIN Compact delivery volume: ↓ 5.1% , unit price ↑ 14.1% Nekopos delivery volume ↑ 72.2% , uni
Slide 17: Quarterly YoY Trends of TA-Q-BIN Delivery Volume
11. Quarterly YoY Trends of TA-Q-BIN Delivery Volume (excl. Nekopos) (Fourth quarter ended March 31 2019) (Unit: %) 25.0 10.0 50 on) 60) + 7.4) (10.0) (15.0) (20.0) 10 2a 3a Q 10 20 30 40 10 2a 3a 4Q ‘=®=Delivery volume (TA-Q-BIN¢TA-Q-BIN Compact) ==Delivery volume (Retail (individual customers and
Slide 18: Quarterly YoY trends of Kuroneko DM-Bin
12. Quarterly YoY trends of Kuroneko DM-Bin (Fourth quarter ended March 31, 2019) (Unit: %) 15.0 10.0 “7 88 % 50 24 25 ee et ae 7 i 7.0 3 00 4.7 0.0 0.067" 36 3.6 3.6 87” eee ten ar (1.8) (1.1) 4.3) (6.0) F (3.4) (3.4) (3.5) (7.0) (10.0) (1.0) i 4 (19.2)! (20.0) ~~ (21.7) (25.0) © 4 2a 3a 4Q 10 2a 3
Slide 19: YoY Trends of TA-Q-BIN Business Overseas
[YoY Trends of TA-Q-BIN Business Overseas (Full Year)] • Delivery volume decreased due to our review of unprofitable transactions, etc.
Slide 20: YoY Analysis of Consolidated Operating Expenses
[YoY Analysis of Consolidated Operating Expenses (Full Year)] (1) Personnel expenses increased by ¥34.9 billion (↑ 4.4%): mainly as a result of having increased the workforce to build collection and delivery systems Employee salary ↑ ¥27.8 billion, Bonus ↑ ¥3.2 billion, Welfare expenses and legal we
Slide 21: Summary of Consolidated Operating Expenses (Full Year)
15. Summary of Consolidated Operating Expenses (Full Year) 1,538,813 1,625,315 | +86,501 +56 1,503,127 1,566,969 | +63,841 +42 786,787 821,715] +34,928 +4.4 536,488 564,377 | +27,888 $5.2 250,298 257,338 +7,040 42.8 627,207 629,645 42,437 +04 269,563 256,817 (12,745) (47) 194,338 201,377 +7,039 +36
Slide 22: Summary of Operating Expenses in Delivery Business (Full Year)
16. Summary of Operating Expenses in Delivery Business (Full Year) 1,201,769 1,297,222 +95,452 1,195,013 1,256,435 +61,422 +54 682,563 714,381 +31,818 +47 465,455 491,417 +25,961 +5.6 217,107 222,964 +5,856 42.7 375,159 373,330 (1,828) (0.5)} 157,215 151,475 (5,740) (3.7) 184,568 191,969 +7,401 +4.0
Slide 23: Summary of Consolidated Operating Expenses (Fourth Quarter)
[Summary of Consolidated Operating Expenses (Fourth Quarter Ended March 31, 2019)] (1) Personnel expenses increased by ¥11.9 billion (↑7.0%): mainly as a result of having increased the workforce to build collection and delivery systems (2) Subcontracting expenses ↓ ¥2.7 billion (↓1.8%) 1) Commission
Slide 24: Operating Expenses in Delivery Business (Fourth Quarter)
18. Summary of Operating Expenses in Delivery Business (Fourth Quarter Ended March 31, 2019) 279,955 290,460 +10,504 282,895 309,100 +26,204 162,971 175,101 +12,130 114,095 123,474 +9,378 48,876 51,627 +2,751 87,027 88,258 +1,231 35,394 34,362 (1,032) 44,270 47,174 +2,904 7,362 6,721 (641) 8,268 8,5
Slide 25: Fourth quarter compared with previous forecast
[Summary of consolidated operating expenses (Fourth quarter ended March 31, 2019, compared with the previous forecast)] 1. Operating revenue ↓ ¥4.6 billion( ↓ 1.3%) ☞Lower than anticipated TA-Q-BIN delivery volume • Results deviated from forecast for shipments in the realm of large-lot corporate cli
Slide 26: Operating Results Forecast for FY Ending March 2020
20. Operating Results Forecast for the Fiscal Year Ending March 31, 2020 Breakdown by Business Segment 1,297,222 1,350,000 +52,777 147,437 153,000 +5,562 33,404 42,000 +8,595 26,592 27,000 +407 79,966 83,000 +3,033 25,985 27,000 +1,014 14,705 13,000 (1,705) 50,000 +9,212 4,000 +670 (3,000) +4,764 10
Slide 27: Forecast breakdown of operating expenses
[Operating results forecast for the fiscal year ending March 2020 (breakdown of operating expenses)] (1) Personnel expenses ↑ ¥58.2 billion ( ↑ 7.1%) ☞Increased because the impact of increasing the workforce in the fiscal year ended March 31, 2019 affected results for the entire year, and also due t
Slide 28: Availability of materials and disclaimer
These presentation materials (with explanatory notes) and the minutes of the financial results meeting Q&A are posted in PDF format on the Company's website in the Investor Relations section. Disclaimer: This material is intended for informational purposes only and is not a solicitation or offer to