Yamato Holdings Co., Ltd. · TSE:9064
Yamato — Investor Presentation (September 2022)
16 slides from Yamato's investor presentation, Sep 30, 2022
Slide 1: Structural Reform of Network Operations
Structural Reform of Network Operations September 30, 2022 Yamato Holdings Co., Ltd.
Slide 2: Background of Structural Reforms of Network Operations
1． Background of Structural Reforms of Network Operations ・ Growth of EC, and changes in customer needs and distribution structure since 2010 →Issues in the existing (TA-Q-BIN) network have become apparent （Billions of Yen） Operating revenue (Thousands of parcels) 3,000 Parcel delivery (Total of 4 i
Slide 3: Aim of Structural Reforms of Network Operations
2．Aim of “Structural Reforms of Network Operations” Fundamentally reforming our network and operational structure in order to respond to the expansion of e-commerce and changes in customer needs and distribution structure ・Capture growing demand, mainly driven by EC, through a designated network tha
Slide 4: Structure of Existing (TA-Q-BIN) Network (Characteristics and Overview)
3．Structure of Existing (TA-Q-BIN) Network (Characteristics and Overview) 【Characteristics】 ・Nationwide deployment of sorting and transportation Terminals and Sales offices through a “Hub & Spoke” structure ・Operating under a standard daily timeline in order to provide a unified (high quality) level
Slide 5: Background of Structural Reform (Changes in Demand ①)
4．Background of Structural Reform（Changes in Demand ➀） Growth in volume from large corporate clients →Mismatch with existing (TA-Q-BIN) network, which focuses on collecting small-lot parcels 【Breakdown of TA-Q-BIN volume growth over the past 10 years】 （No. of parcels） FY March 2012 FY March 2022 Dif
Slide 6: Background of Structural Reform (Changes in Demand ②)
5． Background of Structural Reform（Changes in Demand ②） Growth in EC parcels, which require a different timeline and operation →Mismatch with the existing (TA-Q-BIN) network, which is standardized based on “Next-day delivery” ＜ Traditional ＞ ＜ EC ＞ Timeline is the Transportation reverse Production T
Slide 7: Background of Structural Reform (Changes in the work schedule in terminals)
6． Background of Structural Reform (Changes in the work schedule in terminals) The time schedule of dispatch and arrival sorting operations, which were conducted during the nighttime - late night - early morning - morning hours at existing terminals, has been changed 【Daily work schedule in terminal
Slide 8: Background of Structural Reform (Aim and Overview)
7． Background of Structural Reform (Aim and Overview) 【Aim】 ・ Securely capture growing EC demand (Flexible capacity) ・ Simplifying operation process (Reduction of operating costs) ・ Collaboration with partners (Asset Light) 【Overview】 Dispatch process Arrival process Dispatch Trunk- Sorting Delivery
Slide 9: Comparison Between Existing Network and EC Logistics Network
8． Comparison Between Existing Network and EC Logistics Network ・Development of EC logistics network in urban areas for specific EC platformers →Flexible networking according to EC characteristics and demand (collaboration with external partners) Existing network EC logistics network Clients Numerou
Slide 10: Progress and Development of Building EC Logistics Network
9．Progress and Development of Building EC Logistics Network ・EC Sorting Centers now in place ～Can adapt flexibly to changes in volume ・EC Delivery Centers to be established in accordance with the consolidation of existing last-mile facilities (TA-Q-BIN Sales offices) EC Sorting Centers EC Delivery C
Slide 11: Anticipated Effects of the EC Logistics Network
10．Anticipated Effects of the EC Logistics Network 24 billion yen of operating expense reduction expected（FY 2024/3） ・With the deployment of EC Delivery Centers, EC parcel capacity can be increased through a simplified and End-to-End process* * EC logistics network, that does not require the existin
Slide 12: Consolidation and Enlargement of Existing (TA-Q-BIN) Sales offices (Aim and Overview)
11． Consolidation and Enlargement of Existing (TA-Q-BIN) Sales offices (Aim and Overview) 【Aim】 ・Consolidating and enlarging the numerous small TA-Q-BIN Sales offices in urban areas →To optimize transport, operations, admin and management costs of each facility, while improving safety, quality and t
Slide 13: Consolidation and Enlargement of Existing (TA-Q-BIN) Sales offices (Progress)
12．Consolidation and Enlargement of Existing (TA-Q-BIN) Sales offices (Progress) ・Have been reducing the number of last-mile facilities according to plan from around 4,000 in FY 2019/3, to around 3,500 facilities in FY 2022/3 →Expect to reduce to around 3,000 locations by the final year of the curre
Slide 14: Anticipated Effect of the Consolidation and Enlargement of TA-Q-BIN Sales offices
13． Anticipated Effect of the Consolidation and Enlargement of TA-Q-BIN Sales offices 8 billion yen reduction in operating expense expected (FY 2024/3) ・Consolidate last-mile facilities (TA-Q-BIN Sales offices), and start operation of 8 large facilities with functions of sorting terminal (from FY 20
Slide 15: Setting up facilities that serve Cool-designated Terminals
14．Setting up facilities that serve “Cool-designated Terminals” (and “Last-mile Integration Facilities”) Demand growth for temperature-controlled deliveries, triggered by the COVID-19 pandemic ～Mismatch with capacity Change in YoY growth 【Trend of Cool TA-Q-BIN volume】 consumption behavior triggered
Slide 16: Disclaimer
Disclaimer This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. Ultimately it is the responsibility of investors to select and buy securities and the Company assumes no responsibility for investors wh
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