Yamato Holdings Co., Ltd. · TSE:9064
Yamato — Q2 FY2025/3 Earnings Presentation
49 slides from Yamato's earnings presentation, Nov 5, 2024
Slide 1: Yamato Group IR Presentation Material
Yamato Group IR Presentation Material ＜Second Quarter of the Fiscal year ending March 2025＞ November 5, 2024 Yamato Holdings Co., Ltd. Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.
Slide 2: Summary of consolidated earnings (1st half of FY2025/3)
1. Summary of consolidated earnings (1st half of FY2025/3) 【Results for 1H of FY2025/3】 Operating revenue 840.4 bn yen ((9.5) bn yen vs. forecast, (26.1) bn yen YoY) Operating profit (15.0) bn yen ((10.0) bn yen vs. forecast, (27.3) bn yen YoY) Profit attributable to owners of parent (11.1) bn yen (
Slide 3: Reasons for increase/decrease in operating revenues and profit (vs. forecast)
2. Reasons for increase/decrease in operating revenues and operating profit (1st half of FY2025/3, vs. forecast) Operating revenue （Billions of Yen） 850.0 (7.4) ＋0.8 (2.7) (0.2) ＋0.0 840.4 FY2025/3 Express Contract Logistics Global Mobility Other FY2025/3 1H forecast (EXP) Business (CL) Business Bus
Slide 4: Reasons for increase/decrease in operating revenues and profit (YoY)
3. Reasons for increase/decrease in operating revenues and operating profit (1st half of FY2025/3, vs. same period of FY2024/3) Operating revenue （Billions of Yen） 866.5 (18.3) (9.5) ＋2.6 ＋0.1 (1.0) 840.4 FY2024/3 Express Contract Logistics Global Mobility Other FY2025/3 1H Actual (EXP) Business (CL
Slide 5: Key initiatives and future actions
4. Key initiatives and future actions Key initiatives Status in Q2 (July-Sep.) Policy for the 2H • Volume* in the Retail domain was lower than • Enhance service lineup to meet diverse needs Grow parcel delivery expected, due to continued sluggish consumption: • Establish environment to strengthen sa
Slide 6: Retail domain (EXP business)
5. Retail domain (EXP business) Base domain • Seek to grow parcel delivery revenue by expand service lineup to meet diverse needs, and strengthen sales activities of Sales Drivers (SDs) Status in first half Policy for the second half (1) Enhance service lineup (ongoing measures) FY2024/3 FY2025/3 (B
Slide 7: Corporate domain (EXP business)
Base domain 6. Corporate domain (EXP business) Growth domain • Accelerate growth of Corporate business by improving profitability through charging appropriate rates, and strengthening collaboration with CL Business → Strengthen pricing negotiations with low-profitability clients → Strengthen proposa
Slide 8: Structural reforms of network operations (EXP business)
7. Structural reforms of network operations (EXP business) Base domain • In the transportation domain, halt cost increases due to lower efficiency transportation and loading at each terminal • Review and accelerate structural reforms based on the effects of the measures Status in first half Policy f
Slide 9: Value creation using freighters
8. Value creation using freighters New domain※ • Yamato is capturing new demand triggered by the so-called “2024 problem” and other factors, including the switch from truck transportation, and demand for speedy transportation to capture commercial opportunities, but revenues from clients are signifi
Slide 10: Mobility business
9. Mobility business New domain • Develop infrastructure and ecosystem that combine decarbonization and economic efficiency, and contribute to the sustainability of society and the logistics industry as a whole • Launched "EV Life Cycle Service”, a one-stop support service for commercial vehicle use
Slide 11: Consolidated earnings forecast (key indicators)
10. Consolidated earnings forecast (key indicators) • Revised down in light of first-half results and future outlook • Aim to improve profitability by strengthening the execution system in October and accelerating the resolution of issues • At the same time, promote strategies to transform its busin
Slide 12: Shareholder return
11. Shareholder return • Focusing on stability and continuity →Although the forecast for profit attributable to owners of parent has been revised downward, the annual dividend remains unchanged at 46 yen per share Policy (Current Mid-Term Management Plan period: FY2025/3~FY2027/3) Dividend payout ra
Slide 13: Shareholder return (Buybacks of own shares)
12. Shareholder return (Buybacks of own shares) • Decided to repurchase up to 50 billion yen of own shares from the viewpoint of capital efficiency → Continue to make effective use of debt and strengthen balance sheet management Buybacks of own shares (announced on Nov. 5, 2024) ・ Total acquisition
Slide 14: Acquisition of Shares of Nakano Shokai Co., Ltd.
Acquisition of Shares of Nakano Shokai Co., Ltd. (to Make It a Consolidated Subsidiary) Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.
Slide 15: Overview of the share acquisition
13. Overview of the share acquisition ① Expand Contract Logistics (CL) Business ② Generate synergies with the Express (EXP) Business Objective ③ Achieve cost synergies by jointly using resources of both companies, etc. (in the CL and EXP Businesses) Private company (not listed) Key metrics of Sales
Slide 16: Our aspiration
14. Our aspiration from our Mid-Term Management Plan material Yamato Group’s aspiration (~2030) A value-creating company that contributes to the realization of a sustainable future Management Philosophy Yamato helps enrich our society by Environmental value × Economic value × Social value enhancing
Slide 17: Direction of our management
15. Direction of our management from our Mid-Term Management Plan material (Growth image under “SX2030 ~1st Stage~”) Dramatic profit growth through the reinforcement of the EXP Business (base domain) and business portfolio reform (expansion of business domain) FY2027/3 plan Business portfolio reform
Slide 18: Yamato's business portfolio reform
16. Yamato’s business portfolio reform ～expand the Corporate business domain Growth of CL Business and expansion of EXP Business through M&A →Support supply chain reforms of corporate clients (grow no. of clients that use 3PL・LLP) Growth strategy of CL Business M&A strategy※2 While continuing organi
Slide 19: Overview of Nakano Shokai
17. Overview of Nakano Shokai Engages in contract logistics business using its strengths in the integrated provision of multiple functions, tailored to clients’ needs, its highly efficient management model, and flexible trunk-route transportation network • Headquarters: 3-18-5 Naka-Kasai, Edogawa-ku
Slide 20: Synergies and the PMI structure
18. Synergies and the PMI structure Expansion of CL Business and EXP Business (Corporate business) 【Generate revenue synergies】 • Increase sales opportunities by utilizing the client base of Increase sales opportunities by both companies, that do not overlap in sector/domain utilizing client base, a
Slide 21: Generating revenue synergies
19. Generating revenue synergies Increase sales opportunities by utilizing the client bases of Nakano Shokai and Yamato’s CL Business, which differ in sector/domain. Propose comprehensive solutions for the entire supply chain, from upstream to downstream (receiving and shipping cargo, (receiving and
Slide 22: Examples of revenue synergies
20. Examples of revenue synergies Provide delivery services according to clients’ Customized logistics & transportation services cargo volume and item size Logistics & transportation that cater to the needs of each One-stop delivery services for corporate clients corporate client (Example) Shorter l
Slide 23: Achieving cost synergies
21. Achieving cost synergies Utilize Nakano Shokai’s resources and knowhow Promote the integrated use of Nakano Shokai’s and Yamato’s warehouse and transportation network “Inhouse Manager Model” Transportation network Nakano Shokai prioritizes the training of warehouse managers who Promote integrate
Slide 24: Overview of Consolidated Results for the Second Quarter
Overview of Consolidated Results for the Second Quarter of the Fiscal Year Ending March 2025 Copyright© YAMATO HOLDINGS CO., LTD. All rights reserved.
Slide 25: Operating results for the 1st half of FY2025/3
22. Operating results for the 1st half of FY2025/3 FY2024/3 FY2025/3 (Billions of Yen) YoY Change H1 Actual H1 Actual Amount [%] Operating revenue 866.5 840.4 (26.1) (3.0) Operating profit 12.3 (15.0) (27.3) － Profit margin [%] 1.4 (1.8) (3.2) － Ordinary profit 12.6 (13.6) (26.2) － Profit margin [%]
Slide 26: YoY analysis of operating revenue by segment
23. YoY analysis of operating revenue by segment 【EXP】 Delivery volume grew mainly for cross-border EC and BtoB-EC, but operating revenue decreased due to a decline in post-box delivery volume etc. 【CL】 Operating revenue decreased due to the negative impact compared to the previous year, when we had
Slide 27: Quarterly trends of parcel delivery
24. Quarterly trends of parcel delivery • Delivery volume: Overall volume was increased YoY due to an improvement in the Retail domain and increase in the Corporate domain, despite continued weakness in home delivery demand due to sluggish consumption. • Delivery pricing: Although we focused on opti
Slide 28: Summary of operating expenses
25. Summary of operating expenses • Although unit prices of wages and outsourcing increased, progress was made in optimizing operating costs by linking it to volume, mainly in the last-mile domain, which led to a decline in personnel expenses and delivery commission • Increases in transportation cos
Slide 29: YoY analysis of operating expenses
26. YoY analysis of operating expenses (Billions of yen) 12.3 Personnel Vehicle Other Expenses Expenses operating (26.1) (0.4) expenses Operating ＋4.4 Revenue Eliminations (15.0) (26.1) Subcontracting ＋13.2 Operating Operating FY2024/3 1H Expenses expenses profit FY2025/3 1H Operating profit ＋10.0 O
Slide 30: Summary of operating expenses (Q2: July-Sep.)
27. Summary of operating expenses (Q2: July – Sep.) FY2024/3 FY2025/3 YoY Change (Billions of Yen) Q2 Actual Q2 Actual Amount [%] Operating revenue 446.3 434.7 (11.5) (2.6) Operating expenses 435.6 435.5 (0.0) (0.0) Subcontracting expenses 161.5 168.6 +7.1 ＋4.4 Commission expenses 90.0 89.8 (0.2) (0
Slide 31: YoY analysis of operating expenses (Q2: July-Sep.)
28. YoY analysis of operating expenses (Q2: July – Sep.) (Billions of yen) 10.7 Vehicle Expenses (0.3) Personnel Expenses Other Operating (13.6) Expenses ＋0.8 Operating Eliminations Revenue ＋5.9 (0.7) FY2024/3 Q2 (11.5) FY2025/3 Q2 (July-Sep.) Subcontracting (July-Sep.) Expenses Operating Operating
Slide 32: Operating expenses (Quarterly / YoY change)
29. Operating expenses (Quarterly / YoY change) FY2024/3 FY2025/3 Q1 Q2 Q3 Q4 Q1 Q2 (Billions of Yen) Apr.- YoY Change July- YoY Change Oct.- YoY Change Jan.- YoY Change Apr.- YoY Change July- YoY Change June Amount [%] Sep. Amount [%] Dec. Amount [%] Mar. Amount [%] June Amount [%] Sep. Amount [%]
Slide 33: Investment plan and status
30. Investment plan and status • Revised forecast to 80 billion yen in light of the current business environment and the investment efficiency of the project. Forecast for FY2025/3 Objective 1H Results Previous Forecast New Forecast Change 25.3 bn yen 150 bn yen 80 bn yen (70) bn yen Facilities stra
Slide 34: Operating results forecast for FY2025/3
31. Operating results forecast for FY2025/3 • Despite efforts to optimize pricing, revised volume and unit prices in light of changes in volume composition by market, and reviewed operating earnings in light of the situation where it is taking time to acquire external sales revenue from freighters •
Slide 35: Operating results forecast for FY2025/3 (Breakdown of operating expenses)
32. Operating results forecast for FY2025/3 (Breakdown of operating expenses and others) • Focus on resolving issues in the transportation domain and strive to control overall operating expenses FY2025/3 FY2024/3 FY2025/3 (Billions of Yen) Forecast Forecast Change YoY Change Actual New Forecast as o
Slide 36: Structural reform of network operations (Status of cost per parcel)
Reference-1 Structural reform of network operations (Status of cost per parcel) Transportation domain (Trunk-route and intra-regional transportation, Terminal operations) Q1 (Apr.-June) Q2 (July-Sep.) (0.4) yen: from forecast +6.0 yen: from forecast Cost per parcel in transportation domain (Q2) ＋0
Slide 37: Consolidation and enlargement of last-mile pickup & delivery facilities
Reference-2 Structural reform of network operation (Consolidation and enlargement of last-mile pickup & delivery facilities) Trend of no. of last-mile facilities 3,086 2,995 Approx. 2,915 2,870 2,848 Revised the number of last-mile pickup/delivery 2,800 facilities (forecast) at the end of this fis
Slide 38: Capital and business alliance with Red Horse (RH) Group
Reference-3 Capital and business alliance with Red Horse (RH) Group • Grow volume and provide value to upstream areas in the expanding hometown tax payment market, by leveraging RH Group's know-how and Yamato Group's three-temperature-zone transportation and logistics functions • Aim to establish a
Slide 39: Supplementary Materials: Results for Q2
Supplementary Materials ＜Results for the Second Quarter of the Fiscal Year Ending March 2025＞
Slide 40: Operating results by segment
1. Operating results by segment FY2025/3 H1 Mobility (Billions of Yen) Express Business CL Business Global Business Other Total Reconciliation Consolidated Business Operating Revenues Unaffiliated Customers 737.4 38.9 41.0 10.0 12.9 840.4 － 840.4 Inter-segment 18.4 2.3 1.7 16.7 23.6 62.9 (62.9) － To
Slide 41: Delivery volume and unit price
2. Delivery volume and unit price TA-Q-BIN・TA-Q-BIN Compact・EAZY Q1 Q2 1H Apr.-June YoY[%] July-Sep. YoY[%] YoY[%] Delivery Volume (Thousands)* 451,245 ＋2.0 492,926 ＋5.0 944,172 ＋3.5 EAZY 113,558 (2.3) 117,477 (1.3) 231,035 (1.8) Retail domain *breakdown 205,279 (3.3) 222,965 (0.6) 428,244 (1.9) (in
Slide 42: Employee breakdown
3. Employee breakdown FY2024/3 FY2025/3 H1 H1 (Number) Change Full-time Part-time Total Full-time Part-time Total Full-time Part-time Total [%] Total Employees 91,091 98,862 189,953 87,755 85,779 173,534 (3,336) (13,083) (16,419) (8.6) Express Business 82,278 93,348 175,626 79,321 80,189 159,510 (2,
Slide 43: Financial position and cash flows
4. Financial position and cash flows Balance sheet (Billions of Yen) As of March 31, 2024 As of September 30, 2024 YoY Change Total assets 1,135.8 1,099.2 (36.6) Current assets 496.3 448.7 (47.6) Cash and deposits 195.0 164.3 (30.6) Notes and accounts receivable 212.0 205.9 (6.1) – trade, and contra
Slide 44: Capital expenditure and depreciation
5. Capital expenditure and depreciation FY2024/3 FY2025/3 (Billions of Yen) Change H1 Actual [%] H1 Actual [%] Amount [%] Capital Expenditure 21.9 100.0 25.3 100.0 ＋3.4 ＋15.5 Vehicles 0.4 2.1 1.0 4.1 ＋0.5 ＋119.2 Office / Buildings and Accompanying Facilities 9.1 41.7 11.0 43.4 ＋1.8 ＋20.2 Automatic S
Slide 45: Supplementary Materials: Forecast for FY ending March 2025
Supplementary Materials ＜Forecast for the Fiscal Year Ending March 2025＞
Slide 46: Operating revenue by segment
1. Operating revenue by segment FY2024/3 FY2025/3 (Billions of Yen) Change Actual [%] Forecast [%] Amount [%] Express Business 1,548.5 88.1 1,528.0 88.3 (20.5) (1.3) Contract Logistics Business 89.0 5.1 66.0 3.8 (23.0) (25.9) Global Business 74.0 4.2 91.0 5.3 ＋16.9 ＋22.9 Mobility Business 20.1 1.1 2
Slide 47: Operating profit by segment
2. Operating profit by segment FY2024/3 FY2025/3 (Billions of Yen) Change Actual [%] Forecast [%] Amount [%] Express Business 11.3 28.4 (13.9) (127.5) (25.2) － Contract Logistics Business 9.7 24.3 5.4 49.5 (4.3) (44.3) Global Business 6.6 16.7 8.5 78.0 ＋1.8 ＋27.6 Mobility Business 4.1 10.3 3.3 30.3
Slide 48: Employee Breakdown
3. Employee Breakdown FY2024/3 FY2025/3 (Number) Actual Forecast Change Full-time Part-time Total Full-time Part-time Total Full-time Part-time Total [%] Total Employees 88,917 88,513 177,430 85,600 79,400 165,000 (3,317) (9,113) (12,430) (7.0) Express Business 80,338 82,728 163,066 77,000 74,000 15
Slide 49: 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