Yamato Holdings Co., Ltd. · TSE:9064
Yamato — FY2024 Earnings Presentation
39 slides from Yamato's earnings presentation, May 8, 2024
Slide 1: Yamato Group IR Presentation Material
Yamato Group IR Presentation Material ＜Fiscal year ended March 2024＞ May 8, 2024 Yamato Holdings Co., Ltd. Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.
Slide 2: Consolidated earnings (Summary)
1．Consolidated earnings (Summary) 【Results for the fiscal year ended March 2024】 Operating revenue 1.7586 tn yen ((42)bn yen YoY) 391.7 bn yen for the 4th quarter (Jan.-Mar.) ((12.9)bn yen YoY) Operating profit 40 bn yen ((20)bn yen YoY) (10.3)bn yen for the 4th quarter (Jan.-Mar.) ((3.9)bn yen YoY)
Slide 3: Reasons for increase/decrease in operating revenues and operating profit (FY2024/3)
2．Reasons for increase/decrease in operating revenues and operating profit (FY2024/3) Operating revenue 1.8006 tn yen (15.4) bn yen (9.2) bn yen (15.3) bn yen ＋1.8 bn yen (25.1) bn yen ＋21.2 bn yen 1.7586 tn yen FY2023/3 Express Contract Logistics Global Mobility Other Reconciliation FY2024/3 Actual
Slide 4: Consolidated earnings forecast (key metrics)
3．Consolidated earnings forecast (key metrics) ・ Return operating revenues to a growth trajectory, by facing our customers through the One YAMATO structure, and catering to their diverse needs and expectations ・ In light of changes in the business environment, Yamato will rigorously promote the faci
Slide 5: Reasons for increase/decrease in operating revenues and operating profit (FY2025/3)
4．Reasons for increase/decrease in operating revenues and operating profit (FY2025/3) Operating revenue ＋18.6 bn yen ＋0.8 bn yen (1.7) bn yen 1.8200 tn yen ＋49.9 bn yen (6.2) bn yen 1.7586 tn yen FY2024/3 Express Contract Logistics Global Mobility Other FY2025/3 Actual (EXP) business (CL) business b
Slide 6: Business strategy (Base domain / EXP business)
5. Business strategy（Base domain／EXP business) ・ 【Retail domain】 Strengthen sales towards small corporates, and design and deploy contact / sales points with customers ・ 【Corporate domain】 Continue expanding new business, and strengthen our pricing strategy Progress in FY March 2024 Initiatives in F
Slide 7: Structural reforms of network operations (Base domain / EXP business)
6. Structural reforms of network operations (Base domain／EXP business) ・ Continue strengthening the TA-Q-BIN network, which is the foundation of Yamato’s sustainable growth ・ Accelerate development and implementation of IT systems in order to establish fully digital operations, which will serve as t
Slide 8: Business strategy (growth domain / CL business)
7. Business strategy (growth domain / CL business) ・ By combining value-add services with TA-Q-BIN, provide total solutions to a wide range of customers ・ Promote M&A and strategic alliances that contribute to mid-to-long term growth FY2024/3 FY2025/3 Key strategy （Billions of Yen） YoY Change Actual
Slide 9: Business strategy (Growth domain / Global business)
8. Business strategy（Growth domain／Global business) ・ Make the most use of Yamato’s overwhelming customer base in Japan, our international network, customs expertise for cross border EC, etc. ・ Narrow down targeted industries and regions, and promote M&A and strategic alliances that contribute to mi
Slide 10: Business strategy (New domain / Mobility business)
9. Business strategy（New domain／Mobility business) ・ Promote the introduction and operational support of commercial EVs, based on the vehicle maintenance business, and by utilizing the various knowhow accumulated through Yamato’s environmental investments and experiments Business platform：Yamato Aut
Slide 11: Value creation using freighters (New domain)
10. Value creation using freighters（New domain※) ・ Capturing new demand by leveraging on stable and speedy transportation Background for the introduction of freighters Model cases with clients Increase in parcel delivery demand, and changes in cargo characteristics ➀EC next-day delivery model (to K
Slide 12: Capital efficiency improvements
11．Capital efficiency improvements ・ Aim for ROE and ROIC higher than the cost of capital, by strengthening the TA-Q-BIN network (aggressive growth investment for structural reforms of network operations) and enhancing the value provided, and by achieving profit growth and asset efficiency by provid
Slide 13: Capital allocation
12．Capital allocation ・ Make aggressive growth investments using interest-bearing debt, while maintaining financial discipline ・ Prioritize stability and consistency of dividends, and flexibly consider share buybacks, based on factors such as future investments, progress in our earnings, and share p
Slide 14: Investment plan
13．Investment plan ・ Total investments for the 3 years during the Medium-term management plan “SX2030 ～1st Stage～” is 400 billion yen ・ In the first year (FY March 2025), 150 billion yen is scheduled to be invested, mainly as growth investments related to Yamato’s facilities strategy, etc. investmen
Slide 15: Shareholder return
14. Shareholder return ・ In the mid-term management plan "SX2030 ~1st Stage~", Yamato will target a dividend payout ratio of 40% or above and a total return ratio of 50% or above, while emphasizing dividend stability and continuity ・ The annual dividend per share for FY March 2025 is projected to be
Slide 16: Overview of Consolidated Results for the Fiscal Year Ended March 2024
Overview of Consolidated Results for the Fiscal Year Ended March 2024 Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.
Slide 17: Operating Results (FY2024/3)
15．Operating Results (FY2024/3) ・ Operating revenues decreased, due to factors including the continued downward trend in logistics and international logistics businesses revenues, despite an increase in parcel delivery revenues as a result of pricing optimization amid continued weak parcel delivery
Slide 18: Summary of Operating Revenue (FY2024/3)
16． Summary of Operating Revenue (FY2024/3) • Retail BU: Revenues decreased due to lower volume, despite a rise in unit prices • Corporate BU: Revenues decreased mainly due to the continued downward trend in logistics and international logistics, despite an increase in parcel delivery revenues due t
Slide 19: YoY Analysis of Operating Revenue (FY2024/3)
17． YoY Analysis of Operating Revenue (FY2024/3) Retail Business Unit Corporate Business Unit Other Transportation income Transportation income ＋9.8 Transportation income (10.0) Logistical support income (33.0) (1.7) Logistics (14.0) Eliminations/Others Logistical support income International logist
Slide 20: Quarterly Trends of Parcel Delivery
18．Quarterly Trends of Parcel Delivery • Volume: Expanded new transactions with large customers amid continued weakness in parcel delivery demand • Unit price: The rate of increase (YoY) slowed down, due to the expansion of new transactions in the corporate sector, and volume decline in the retail s
Slide 21: Summary of Operating Expenses (FY2024/3)
19．Summary of Operating Expenses (FY2024/3) • Progress in reducing labor costs by optimizing operating costs to strengthen TA-Q-BIN network amid continued increases in wages, outsourcing unit prices, etc. • The amount of cancellation of internal procurement declined, due to the impact of Yamato Staf
Slide 22: YoY Analysis of Operating Expenses (FY2024/3)
20．YoY Analysis of Operating Expenses (FY2024/3) (Billions of yen) Personnel Expenses 60.0 (37.2) Subcontracting Expenses Vehicle Other 40.0 Expenses (5.3) operating ＋1.2 expenses Eliminations +7.7 +11.5 Operating Revenue (42.0) FY2023/3 Operating Operating FY2024/3 Actual expenses profit Actual (22
Slide 23: Operating Expenses (Quarterly / YoY change)
21．Operating Expenses (Quarterly / YoY change) FY2023/3 FY2024/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Billions of Yen) Apr.- YoY Change July- YoY Change Oct.- YoY Change Jan.- YoY Change Apr.- YoY Change July- YoY Change Oct.- YoY Change Jan.- YoY Change June Amount* [%]* Sep. Amount* [%]* Dec. Amount* [%]* Mar
Slide 24: Financial Position and Cash Flows
22．Financial Position and Cash Flows 【Consolidated Statement of Financial Position】 (Billions of Yen) As of March 31, 2023 As of March 31, 2024 YoY Change Total assets 1,107.5 1,135.8 ＋28.3 Current assets 484.6 496.3 ＋11.7 Cash and deposits 185.3 195.0 ＋9.6 Notes and accounts receivable – 216.2 212.
Slide 25: Operating Results Forecast for FY2025/3
23． Operating Results Forecast for FY2025/3 ・ Aim to grow operating revenues by increasing revenues from the three parcel delivery services, by expanding the value provided to customers, and by strengthening pricing strategies, and developing total solutions for a wide range of customers in the Cont
Slide 26: Operating Results Forecast for FY2025/3 (Breakdown of Operating Expenses and others)
24．Operating Results Forecast for FY2025/3 (Breakdown of Operating Expenses and others) ・ Operating expenses are expected to rise, due to upward external pressure on wages and procurement costs such as outsourcing, as well as depreciation and facility usage fees as a result of business structure ref
Slide 27: Changes to reporting segments
Reference－1 Changes to reporting segments ・Change to the Express(EXP) business, Contract Logistics(CL) business, Global business and Mobility business, in alignment with our management strategy and structure Segments / key entities (Before) Segments / key entities (Going forward) Yamato Transport (s
Slide 28: Structural reform of network operations (Status of cost per parcel)
Reference－2 Structural reform of network operations (Status of cost per parcel) Transportation domain (Trunk-route and intra-regional transportation, Terminal operations) (1.7) yen: (0.1) yen: ＋3.4 yen: ＋4.5 yen: Cost* per parcel in transportation domain (Q4) from forecast from forecast from forec
Slide 29: Consolidation and enlargement of last-mile pickup & delivery facilities
Reference－3 Structural reform of network operation (Consolidation and enlargement of last-mile pickup & delivery facilities) Trend of no. of last-mile facilities 3,248 3,138 3,086 2,995 Progressing almost in line with plan 2,915 Approx. Will promote further consolidation, in conjunction 2,700 wi
Slide 30: Transform trunk-route transportation to a hub & spoke model
Reference－4 Structural reforms of network operations (transform trunk-route transportation to a hub & spoke model) Innovate the way we transport, from “intricate and complicated” to “simple and easy to understand by anyone” Transportation from Terminal to Terminal Hub & spoke type transportation Goi
Slide 31: Structural reforms of network operations (establish fully digital operations)
Reference－5 Structural reforms of network operations (establish fully digital operations) ・ Realign operations, thereby automating work instructions and achieving the optimal allocation of resources in conjunction with volume → Improve productivity by eliminating excess and volatility, caused by ope
Slide 32: International Multimodal Transport Service Connecting Southeast Asia and Europe
Reference－6 Yamato Group Launches International Multimodal Transport Service Connecting Southeast Asia and Europe ・ Supporting Establishment of Resilient Global Supply Chains in Response to Geopolitical Risks(from May 1, 2024) １．Background and Purpose ２．Service Overview ・ The Southeast Asian region
Slide 33: Strengthen the Group's management foundation (HR and digital strategies)
Reference－7 Strengthen the Group’s management foundation (HR and digital strategies) ・ Promote HR and digital strategies linked to management strategies, as the foundation for sustainable corporate value enhancement Progress in FY March 2024 Initiatives in FY March 2025 Establishment and operation
Slide 34: Strengthening sustainable management
Ref.－8 Strengthening the Group's management foundation （Strengthening sustainable management) ・ In the “Sustainable Medium-Term Management Plan 2023”, Yamato promoted measures to achieve the targets set based on materiality, under the theme of "Transformation of Yamato”. As a result, the targets wer
Slide 35: Operating Results for FY2024/3 Q4 (Jan.-Mar.)
Ref.－9 Operating Results for FY2024/3 Q4 (Jan.-Mar.) FY2023/3 FY2024/3 (Billions of Yen) YoY Change Q4 Actual Q4 Actual Amount [%] Operating revenue 404.7 391.7 (12.9) (3.2) Operating profit (6.3) (10.3) (3.9) - Profit margin [%] (1.6) (2.6) (1.1) - Ordinary profit (6.1) (10.1) (3.9) - Profit margin
Slide 36: Summary of Operating Expenses for FY2024/3 Q4 (Jan.-Mar.)
Ref.－10 Summary of Operating Expenses for FY2024/3 Q4 (Jan.-Mar.) FY2023/3 FY2024/3 YoY Change (Billions of Yen) Q4 Actual Q4 Actual Amount [%] Operating revenue 404.7 391.7 (12.9) (3.2) Subcontracting expenses 151.0 151.8 ＋0.7 ＋0.5 Commission expenses 81.6 82.9 ＋1.3 ＋1.7 Delivery commission 21.3 20
Slide 37: YoY Analysis of Operating Expenses (Q4 Jan. – Mar.)
Ref.－11 YoY Analysis of Operating Expenses (Q4 Jan. – Mar.) (Billions of yen) Operating Operating expenses profit FY 2023/3 Q4 (Jan. – Mar.) (8.9) (3.9) FY 2024/3 Q4 (Jan. – Mar.) Operating profit (2.2)% ー% Operating profit Actual Operating Personnel Expenses Actual Revenue (17.4) (12.9) (6.3) Vehic
Slide 38: Investment performance (FY2024/3)
Ref.－12 Investment performance (FY2024/3) •• Promoting Made progress investments to establish in investments large-scale to establish consolidated large consolidated facilities facilities •• In In terms digital of digitalization, domain, continue to wefocus will on continue system to focus on system
Slide 39: 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