Yamato Holdings (9064) Investor Update summary

Progress of sustainability strategy and governance

• Sustainability initiatives are integrated into management, focusing on environmental, economic, and social value creation for long-term growth.

• Governance structures include board-level oversight and specialized committees to ensure effective implementation and monitoring of ESG initiatives.

• Materiality assessments are evolving to link environmental and social value directly to economic outcomes, with ESG metrics incorporated into executive evaluations.

Environmental strategy: Green Mobility commercialization

• Achieved a 15% reduction in GHG emissions since FY2021/3, progressing toward a 25% reduction by FY2027/3 and 48% by 2030.

• Large-scale EV deployment (approx. 4,200 vehicles) and expansion of renewable energy use (55% rate) are underway, with a 2030 target of 23,500 EVs.

• The Yamato Energy Management (YEM) business leverages group electricity demand to reduce costs, generate revenue, and reinvest in environmental and social initiatives.

• YEM is expected to deliver an operating profit of approx. ¥500 million in its first year, with a 10% ROI and 5% ROIC, and is scalable through local renewable energy partnerships.

Human capital strategy for sustainable growth

• Structural reforms have improved operating profit by ¥11.2 billion in H1 FY2026/3, driven by pricing optimization, business growth, and cost control.

• Reallocation of administrative staff to front-line roles and targeted training have increased sales and productivity, with TA-Q-BIN revenue per shift up 5.7%.

• Specialized talent development and engagement initiatives have strengthened corporate and global business pipelines and improved workplace satisfaction.

• Executive compensation now places greater emphasis on performance and ESG metrics, aligning management incentives with long-term value creation.