Yamato Holdings Co., Ltd. · TSE:9064

Yamato — Q2 FY2023/3 Earnings Presentation

24 slides from Yamato's earnings presentation, Nov 7, 2022

1. Slide 1: Yamato Group IR Presentation Material

   Yamato Group IR Presentation Material ＜2nd Quarter of Fiscal year ending March 2023＞ November 7, 2022 Yamato Holdings Co., Ltd. Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.

2. Slide 2: Overview of the Medium-term Management Plan One YAMATO 2023 Structural Reforms

   1．Overview of the Medium-term Management Plan “One YAMATO 2023” Structural Reforms (From 1Q Financial Results Meeting) • Established the “One YAMATO” structure, bringing together the Group’s management resources（FY2021~) →Reviewing the construct of the Group’s management (structure & organization),

3. Slide 3: Progress of Structural Reforms

   2．Progress of Structural Reforms Value provision to corporate clients ・ Steady progress in Growth domain (Account business) ・ Improvements made in the more challenged Base domain (Area Customers) Structural reforms of network operations ・ Made steady progress in establishing EC logistics network, wh

4. Slide 4: Value provision to corporate clients ① Growth domain

   3．Value provision to corporate clients ① Progress made in providing value in Growth domain (EC, Global, National and Regional accounts), to enhance sales opportunities, offer better end user experiences, innovate supply chains and optimize logistics and inventory control  EC accounts EC ・ Make full

5. Slide 5: Value provision to corporate clients ② Area Customers

   4． Value provision to corporate clients ② Gradual progress in value provision through “TA-Q-BIN + α” in the base domain (Area Customers) → Based on findings and insights from Sales Drivers, Corporate Sales team promotes proposal sales  Area Customers Approx. 40% of EC ・ Thoroughly utilize corporate

6. Slide 6: Structural reforms of network operations ①

   5．Structural reforms of network operations ① Making steady progress in establishment of EC logistics network that addresses growing demand, and consolidating & enlarging facilities in the existing network  Deployment of EC Delivery Centers（total of 7 facilities） ・ 2 additional facilities began oper

7. Slide 7: Structural reforms of network operations ②

   6．Structural reforms of network operations ② Promoted measures to optimize existing network, such as by reviewing scope of operations of Yamato and external partners in “Intra-region transportation” and “Operations in Terminals”  “Trunk-route transportation” 【Quarterly trends of outsourcing expense

8. Slide 8: Capital expenditure (progress and outlook)

   7．Capital expenditure (progress and outlook) ・ Utilize multi-tenant facilities for TA-Q-BIN Sales offices and consolidated & enlarged Terminals （lease contracts） ・ For material handling (sorting equipment) in Terminals, introduce simple unit-type equipment → Less investment needed compared to initia

9. Slide 9: Consolidated earnings forecast (key metrics)

   8．Consolidated earnings forecast (key metrics) ・ Revised consolidated earnings forecast, based on 1st half performance, current business environment and demand trends, the rise in external costs, etc. ・ Revision of volume outlook: Focus on optimal allocation of resources based on a declined workload

10. Slide 10: Overview of Consolidated Results for the 2nd Quarter of Fiscal Year Ending March 2023

    Overview of Consolidated Results for the 2nd Quarter of Fiscal Year Ending March 2023 Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.

11. Slide 11: Operating Results in the 1st half of the Fiscal Year Ending March 31, 2023

    9．Operating Results in the 1st half of the Fiscal Year Ending March 31, 2023 Fiscal Year ended Fiscal Year ending March 31, 2022 March 31, 2023 YoY Change YoY Change(*1) (Billions of Yen) 1st Half 1st Half Actual Actual Amount [%] Amount [%] Operating revenue 865.4 883.7 +18.2 +2.1 +34.6 +4.1 Operat

12. Slide 12: Summary of Consolidated Operating Revenue (1st half of FY2023/3)

    10． Summary of Consolidated Operating Revenue (1st half of FY2023/3) Fiscal Year ended Fiscal Year ending March 31, 2022 March 31, 2023 YoY Change YoY Change (*1) (Millions of Yen) 1st Half 1st Half Actual Actual Amount [%] Amount [%] Retail Business Unit 429,379 437,653 ＋8,274 ＋1.9 ＋8,274 ＋1.9 Tran

13. Slide 13: YoY Analysis of Consolidated Operating Revenue (1st half of FY2023/3)

    11．YoY Analysis of Consolidated Operating Revenue (1st half of FY2023/3) *Excluding the impact of removing Yamato Home Convenience Co., Ltd. Retail Business Unit Corporate Business Unit from scope of consolidation Transportation income Transportation income ＋7.4 +24.6 Logistical support income ＋15.8

14. Slide 14: Quarterly Trends of Parcel Delivery (TA-Q-BIN, TA-Q-BIN Compact, EAZY)

    12．Quarterly Trends of Parcel Delivery (TA-Q-BIN, TA-Q-BIN Compact, EAZY) (2nd Quarter July – September) FY2021/3 FY2022/3 FY2023/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Delivery Volume (Thousands) 428,032 444,213 521,607 409,822 444,328 470,100 540,567 435,687 449,504 490,766 YoY(%) +13.4 +6.2 +11.7 +12.3

15. Slide 15: Summary of Consolidated Operating Expenses (1st half)

    13．Summary of Consolidated Operating Expenses (1st half) Fiscal Year ended Fiscal Year ending March 31, 2022 March 31, 2023 YoY Change YoY Change (*2) (Millions of Yen) 1st Half 1st Half Actual (*1) Actual Amount [%] Amount [%] Operating revenue 865,470 883,755 ＋18,285 ＋2.1 ＋34,675 +4.1 Subcontracti

16. Slide 16: YoY Analysis of Consolidated Operating Expenses (1st half)

    14．YoY Analysis of Consolidated Operating Expenses (1st half) (Billions of yen) * Excluding the impact of removing Yamato Home Convenience Co., Ltd. from scope of consolidation Subcontracting Personnel Revenue expenses Other expenses Vehicle increase operating ＋34.6 ＋26.2 ＋7.9 expenses expenses 33.1

17. Slide 17: Summary of Consolidated Operating Expenses (2nd Quarter July – September)

    15．Summary of Consolidated Operating Expenses (2nd Quarter July – September) Fiscal Year ended Fiscal Year ending March 31, 2022 March 31, 2023 YoY Change YoY Change (*2) (Millions of Yen) 2nd Quarter 2nd Quarter Actual (*1) Actual Amount [%] Amount [%] Operating revenue 445,628 459,596 ＋13,967 ＋3.1

18. Slide 18: YoY Analysis of Consolidated Operating Expenses (2nd Quarter July – September)

    16．YoY Analysis of Consolidated Operating Expenses (2nd Quarter July – September) * Excluding the impact of removing Yamato Home Convenience Co., Ltd. (Billions of yen) from scope of consolidation Revenue Subcontracting Expenses Personnel Other increase ＋14.5 Expenses Vehicle operating ＋22.6 ＋5.1 Ex

19. Slide 19: Consolidated Operating Results Forecast for the Fiscal Year Ending March 2023

    17． Consolidated Operating Results Forecast for the Fiscal Year Ending March 2023 Fiscal Year ending Fiscal Year ending Fiscal Year ended March 31, 2023 March 31, 2023 (Millions of Yen) March 31, 2022 Forecast Change YoY Change YoY Change (*1) August 2022 New Actual Amount [%] Amount [%] Amount [%]

20. Slide 20: Consolidated Operating Results Forecast (Breakdown of Operating Expenses and others)

    18．Consolidated Operating Results Forecast for the Fiscal Year Ending March 2023 (Breakdown of Operating Expenses and others) Fiscal Year ending Fiscal Year ending Fiscal Year ended March 31, 2023 March 31, 2023 (Millions of Yen) March 31, 2022 Forecast Change YoY Change YoY Change (*2) August 2022

21. Slide 21: Status of Optimizing Overall Network and Operations

    Reference Status of Optimizing Overall Network and Operations Outlook for outsourcing costs for sorting and transportation*1 （JPY MM） （JPY） (As of 2Q) 80,000 120.0 110.0 60,000 100.0 90.0 40,000 80.0 70.0 20,000 60.0 0 50.0 1Q 2Q 3Q 4Q Outsourcing costs2022/3 仕分・輸送下払経費 for sorting and transportation

22. Slide 22: Signed Lead Logistics Partner Contract with Nihon Michelin Tire Co., Ltd.

    Reference Signed “Lead Logistics Partner” Contract with Nihon Michelin Tire Co., Ltd. As Lead Logistics Partner that achieves the sustainable growth of corporate clients, Yamato Group is supporting supply chain innovation and optimization of logistics operation globally, contributing to better manag

23. Slide 23: Supply Chain Solutions for the food product industry

    Reference Supply Chain Solutions for the food product industry Utilize facilities that integrate the TA-Q-BIN sorting terminal with 3-temperature zone control functions (regular, chilled and frozen), thereby establishing a distribution scheme for DtoC, where demand is growing, and optimizing the sup

24. Slide 24: Disclaimer

    Disclaimer 免責事項 This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial この内容は、投資判断の参考となる情報の提供を目的としたもので、投資勧誘を目的としたものではありません。提供情報の内容については instruments. Ultimately it is the responsibility of investors to select and buy

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