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Message To Investors

To our Shareholders and Investors:

In the fiscal year ended March 31, 2017, the economic environment was plagued by ongoing uncertainties ahead due to factors such as effects of shifting U.S. government policy as a consequence of the administration changing hands and the political situation in Europe, yet gradual economic recovery held course amid underlying strengths in corporate earnings. Moreover, although small parcel volume has continued to increase partially due to accelerating growth in the mail order market, conditions surrounding the logistics industry have been increasingly severe amid further tightening of the domestic labor market. Operating in this environment, we worked toward achieving the objectives of the Long-Term Management Plan “DAN-TOTSU Management Plan 2019" and the Medium-Term Management Plan “DAN-TOTSU Three-Year Plan STEP." To that end, we focused on creation of a business model for generating substantial added value by building a premium-quality network to enable efficient logistics and fusing together the Group's business resources.

In the Delivery Business, revenues increased against a backdrop of delivery volume having hit a new record high thanks to efforts geared to adding more points of service access for the “TA-Q-BIN Compact" and “Nekopos" services, along with continued growth in the mail order market. Still, earnings have come under pressure from factors that include rising labor costs such as those involving our outsourcing workforce needed in order to maintain service quality amid further tightening of the labor market.

In the non-delivery businesses, we took steps to expand our existing service offerings by enlisting the strengths of Group companies, while also drawing on Group-wide ties as we aggressively promoted solution sales geared toward addressing customers’ business challenges.

In addition, we recorded payments for specially acknowledged working hours additionally recognized as the result of a fact-finding investigation into working hours of employees, which was carried out in the course of promoting “reforming working styles" across the entire Group.

Our consolidated financial results for the fiscal year ended March 31, 2017 were as follows.

(Millions of yen)

Item Fiscal 2016 Fiscal 2017 Change Growth (%)
Operating revenue 1,416,413 1,466,852 50,439 3.6
Operating income 68,540 34,885 (33,654) (49.1)
Ordinary income 69,426 34,884 (34,541) (49.8)
Profit attributable to owners of parent 39,424 18,053 (21,370) (54.2)

During the fiscal year ended March 31, 2017, we purchased treasury shares of 4.23 million shares, for a total acquisition cost of about 10.0 billion yen as measures for shareholder return.

Initiatives for the entire Yamato Group

  • 1. 
    The Yamato Group has been pursuing its “Value Networking" design, on the basis of creating business models for generating a high level of added value through the combined efforts of our respective businesses, while at the same time contributing to growth strategies and international competitive strengths of the Japanese economy. Meanwhile, we are also taking steps to forge a robust corporate culture that acts as a foundation for business creation and development.
  • 2. 
    We continued to drive initiatives geared toward forging a more robust corporate culture. To that end, we worked on enhancing the efficiency and dependability of operations, in part by improving our transport systems and by using our information technology network to enable visual monitoring of operating volumes. Moreover, we actively engaged in CSR-related activities linked to Yamato Group business endeavors, such as through environmental and safety measures, and efforts to prosper communities. On the other hand, working environment has been deteriorating amid a situation where our efforts to build an operational framework have not kept pace with a recently surging mail order market and other such developments. To address such issues we launched initiatives for promoting “reforming working styles" on a Group-wide basis, and accordingly on February 1, 2017 Yamato Transport Co., Ltd. established a “office for reforming working styles," while respective Group companies established “working styles innovation committees." Moreover, successive fact-finding investigations into working hours across the entire Group have revealed issues whereby many employees find themselves unable to take long enough breaks. We are taking this matter very seriously, and accordingly have been taking steps to develop a more employee friendly working environment. As such, we have decided to make payments for specially acknowledged working hours additionally recognized as part of our efforts to heighten employee satisfaction. Moreover, to ensure that this never happens again we have been implementing “reforming working styles" throughout the entire Group, with such efforts centered on the “office for reforming working styles" of Yamato Transport Co., Ltd., and the “working styles innovation committees" of respective Group companies.
  • 3. 
    To further promote our “Value Networking" design, we have been crafting business models that deliver a high level of added value by leveraging the Yamato Group's business network. Also, to address varied customer needs in Japan and overseas, we have been making more effective use of our innovative network platform consisting of the “Haneda Chronogate," “Atsugi Gateway," “Chubu Gateway" and “Okinawa International Logistics Hub" facilities, in addition to our existing “last mile" network.
  • 4. 
    In our business looking toward overseas markets, we have been working to forge inter-regional collaboration while strengthening our capabilities in respective geographic regions in order to invigorate our cross-border transportation services involving shipping between five points in Japan, East Asia, Europe and the Americas, with a focus on the ASEAN region. During the fiscal year ended March 31, 2017, we have been actively promoting efforts to build our cross-border network by further extending it geographically over the ASEAN and East Asian regions. For instance, we have acquired a cross-border line-haul trucking company headquartered in Malaysia, reached agreement involving investment in an international logistics enterprise based in Guangzhou, China. In January, we have launched TA-Q-BIN services domestically in Thailand and in March, we have made the decision to commence sales involving “International Cool TA-Q-BIN" services there.
  • 5. 
    With the aim of improving customer convenience particularly in the mail order market, we have been working to establish an environment that ensures customers ease in picking up their parcels. To that end, we have embarked on efforts to build an open-type network of parcel lockers primarily in train stations and other such locations. Moreover, we have started reviewing opportunities for rolling out cutting-edge technologies with our sights set on development of next-generation logistics services. Our efforts to that end have included collaborating with major companies that provide Internet services and also embarking on our “RoboNeko Yamato" project which involves providing on-demand delivery services that make use of automated driving technologies.

We look forward to the continued support and encouragement of our shareholders and investors as we move to mobilize the collective powers of the Yamato Group and enhance our corporate value.

April 2017

Masaki Yamauchi

Masaki Yamauchi


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