Translation

August 3, 2023

Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2024

Company name:

Yamato Holdings Co., Ltd.

Listing:

Tokyo Stock Exchange

Stock code:

9064

URL:

https://www.yamato-hd.co.jp/

Representative:

Yutaka Nagao, President

Contact:

Toshizo Kurisu, Executive Officer and Vice President, Responsible for Finance

Tel: +81-3-3541-4141 (from overseas)

Scheduled date of the submission of quarterly securities report:

August 8, 2023

Scheduled date of the commencement of dividend payment:

-

Preparation of supplementary materials on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(Amounts less than 1 million yen are discarded.)

1. Consolidated financial results for the first quarter of fiscal year ending March 31, 2024 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results

(Percentages represent year-on-year changes.)

Operating revenue

Operating profit

Ordinary profit

Profit attributable to

owners of parent

For the first quarter

of the fiscal year

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

ending/ended

March 31, 2024

420,212

(0.9)

1,598

(33.9)

1,837

(26.3)

(133)

-

March 31, 2023

424,159

1.0

2,416

(81.0)

2,493

(84.7)

320

(97.3)

(Note) Comprehensive income:

For the first quarter of the fiscal year ending March 31, 2024:

2,934 million yen (177.8%)

For the first quarter of the fiscal year ended March 31, 2023:

1,056 million yen ((93.9)%)

Basic earnings per share

Diluted earnings

per share

For the first quarter

of the fiscal year

Yen

Yen

ending/ended

March 31, 2024

(0.37)

-

March 31, 2023

0.88

-

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2023

1,112,780

601,652

53.5

March 31, 2023

1,107,587

616,430

55.1

(Reference) Equity:

As of June 30, 2023:

595,475 million yen

As of March 31, 2023:

610,380 million yen

2. Dividends

Annual dividends

First quarter

Second quarter

Third quarter

Fiscal year-end

Total

Fiscal year ending/ended

Yen

Yen

Yen

Yen

Yen

March 31, 2023

-

23.00

-

23.00

46.00

March 31, 2024

-

March 31, 2024 (Forecast)

-

23.00

-

23.00

46.00

(Note) Changes from most recently announced forecast: None

3. Consolidated earnings forecasts for fiscal year 2024 (from April 1, 2023 to March 31, 2024)

(Percentages represent year-on-year changes.)

Profit attributable to

Basic

Operating revenue

Operating profit

Ordinary profit

earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Half year

873,000

(1.2)

13,000

(28.0)

13,000

(28.9)

4,400

(57.5)

12.32

Full year

1,820,000

1.1

80,000

33.1

80,000

37.8

58,000

26.4

165.37

(Note) Changes from most recently announced forecast: Yes

  • Notes
  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Application of specific accounting for preparing the quarterly consolidated financial statements: Yes

(Note) For details, please see "2. Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to consolidated financial statements (Application of specific accounting for preparing the quarterly consolidated financial statements)" of the attached materials to the quarterly financial results report on page 13.

(3) Changes in accounting policies, changes in accounting estimates, and restatement

a. Changes due to revision to accounting standards, etc.:

None

b. Changes other than a:

None

c. Changes in accounting estimates:

None

d. Restatement:

None

  1. Number of issued shares (common shares)
    a. Number of issued shares as of the end of the period (including treasury shares)

As of June 30, 2023:

379,824,892 shares

As of March 31, 2023:

379,824,892 shares

b.

Number of treasury shares as of the end of the period

As of June 30, 2023:

21,192,178 shares

As of March 31, 2023:

17,552,067 shares

c.

Average number of shares during the period

For the first quarter of the year ending March 31, 2024:

360,674,211 shares

For the first quarter of the year ended March 31, 2023:

362,964,294 shares

*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit firm.

*Proper use of earnings forecasts and other noteworthy events

  • Descriptions of the above financial projections and other data are based on information currently available to the Company and certain assumptions that the Company considers to be reasonable. Actual financial results may differ significantly from the projections for various reasons. For points to note when using such assumptions and financial projections, please see "1. Qualitative Information on Settlement of Accounts for the Three Months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 7 of the attached materials to the quarterly financial results report.
  • The Company plans to post supplementary materials on quarterly financial results on the Company's website promptly after the announcement of the quarterly financial results.

Attached Materials

Index

1. Qualitative Information on Settlement of Accounts for the Three Months

2

(1)

Summary of operating results

2

(2)

Overview of financial position

7

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements

7

2. Consolidated Financial Statements and Significant Notes Thereto

8

(1)

Consolidated balance sheet

8

(2)

Consolidated statement of income and consolidated statement of comprehensive income

11

Consolidated statement of income (cumulative)

11

Consolidated statement of comprehensive income (cumulative)

12

(3)

Notes to consolidated financial statements

13

(Notes to premise of going concern)

13

(Notes on significant changes in the amount of shareholders' equity)

13

(Application of specific accounting for preparing the quarterly consolidated financial statements)

13

(Segment information, etc.)

14

3. Others

15

Operating revenue by segment

15

- 1 -

1. Qualitative Information on Settlement of Accounts for the Three Months

  1. Summary of operating results
    During the first three months ended June 30, 2023, the impact of COVID-19 weakened, and there was progress towards the normalization of economic activity. On the other hand, inflationary trends are continuing globally, including energy prices remaining high as well as the rise in raw material prices, caused by the instability in global affairs. Meanwhile in Japan, it remains hard to anticipate a full-fledged economic recovery, despite signs of an improvement in economic sentiment, driven by action taken by companies to pass on cost inflation to their prices, as well as the continuing recovery in consumer spending and capital expenditures.
    Moreover, COVID-19 has triggered a change in consumption behavior and lifestyles, as well as the expansion of e-commerce in various industries, driven by more people working from home, as well as medical treatment and education taking place online.
    Under these circumstances, the Yamato Group is focused on providing comprehensive value to address the needs of customers and society, in order to achieve sustainable corporate value enhancement through "Helping to enrich our society" which is part of our Management Philosophy, under the Group management structure in which we brought together the management resources of each Group company, towards innovating the supply chain to address changes in people's lifestyles and the distribution structure.
    Our consolidated financial results for the three months ended June 30, 2023 are as follows:

(Millions of yen)

Item

For the three months ended

For the three months ended

Change

Growth (%)

June 30, 2022

June 30, 2023

Operating revenue

424,159

420,212

(3,946)

(0.9)

Operating profit

2,416

1,598

(818)

(33.9)

Ordinary profit

2,493

1,837

(656)

(26.3)

Net profit attributable to

320

(133)

(453)

-

owners of parent

For the three months ended June 30, 2023, operating revenue was 420,212 million yen, down 3,946 million yen from the same period of the previous year. This was attributable to factors such as our price optimization efforts, while parcel volume and demand for international transportation declined.

Operating expenses was 418,614 million yen, down 3,127 million yen from the same period of the previous year. Despite the continuing increase in costs due to changes in the external environment such as energy prices, raw material prices and hourly wages, operating expenses declined thanks to the progress made in optimizing operating expenses.

As a result, for the three months ended June 30, 2023, operating profit was 1,598 million yen, down 818 million yen from the same period of the previous year.

- 2 -

Initiatives for the entire Yamato Group

The Yamato Group is working on initiatives to realize sustainable corporate value enhancement through "Helping to enrich our society", which is in our management philosophy, and to enhance the comprehensive value provision to address the diversifying needs of customers and society. In order to address the rise in costs resulting from changes in the external environment, we are optimizing our pricing, as well as responding to cost increases at our partner companies in a timely and appropriate manner, thereby maintaining and strengthening the transportation and delivery network as well as establishing an environment to continue providing higher quality services to our customers.

  • Structural reforms of our network operations

We are working to establish and expand a designated network optimized for the diversifying needs for logistics, including the EC demand as well as the shift in BtoB logistics towards small-lot and high frequency deliveries. We are also promoting initiatives to reinforce our existing network, such as consolidating and enlarging the TA-Q-BIN Sales offices, in contrast with our previous strategy of opening many small offices, in order to be able to make adjustments more flexibly in accordance with fluctuations in parcel volume, as well as redefining the functions of our Terminals, and making transportation and delivery, sorting and administration more efficient.

In the three months ended June 30, 2023, we signed the Basic Agreement with Japan Post Group regarding our partnership to promote sustainable logistics services. Going forward, we will use the management resources of both Groups to establish transportation services that improve the convenience for customers and grow our businesses, while contributing to address the "2024 Issue" faced by the logistics industry, as well as carbon neutrality.

  • Enhancing value provision to corporate clients

Amid the increasing risk factors such as global politics and economics as well as supply chains forming "blocks", together with environmental issues, the Yamato Group has positioned the solutions business, which aims to solve clients' management issues across the entire supply chain, as a new growth area. In this context, the Yamato Group continues to establish and expand dedicated networks by integrating sales and operations, while utilizing the Group's management resources to the fullest, in order to expand the value we provide to the entire supply chain, from Japan to the world.

In addition, the Yamato Group is promoting green logistics, such as the introduction of EVs and temperature-controlled deliveries without using dry ice, in order to achieve our goal of net zero greenhouse gas (GHG) emissions (own emissions) by 2050. In the three months ended June 30, 2023, we began developing a GHG emissions visualization tool based on the international standard ISO 14083:2023, with the aim of visualizing our clients' GHG emissions and building a supply chain with less environmental impact, while at the same time working to reduce our own emissions.

  • Promoting strategies for achieving sustainable enhancement of corporate value

The Yamato Group is working to promote digital and HR strategies, as well as enhancing sustainable management and governance, which will serve as the platform to expand the value provided to the supply chain on an "End to End" basis, while realizing the sustainable enhancement of corporate value.

As for our digital strategy, we are establishing a structure that integrates "Business and Digital", while expanding the value provided to clients and improving operational efficiency, by utilizing our digital information platform "Yamato Digital Platform", which can grasp all sorts of information on a real-time basis, and connect it to both internal and external systems.

In terms of our HR strategy, we are establishing the optimal talent portfolio to create new value-add, as well as accommodating a diverse variety of employees and boosting their motivation, based on our "Human Resources Management Policy" that links the growth of employees to the growth of the Group. As for strengthening our sustainable management, we are promoting initiatives to address the materiality specified based on our two visions, towards mid to long-term corporate value enhancement and realizing a sustainable society, of "Connect. Deliver the Future via Green Logistics" and "Through Co-Creation and Fair Business Activities, Help Create a Society That 'Leaves No One Behind'".

In terms of the environment, we are continuing to promote measures such as "introducing 20,000 EVs", "introducing 810 solar power generation facilities" and "improving the usage rate of renewable energy- based electricity", in order to achieve the target of "48% reduction in GHG in 2030, compared to fiscal year

- 3 -

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Yamato Holdings Co. Ltd. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 06:07:32 UTC.