ヤマトホールディングス（9064） – Notice of the 157th Ordinary General Meeting of Shareholders,2022

The following is an English translation of the Notice of the 157th Ordinary General Meeting of Shareholders of Yamato Holdings Co., Ltd. The Company provides this translation for your reference and convenience only and without any warranty as to its accuracy. Stock code: 9064 June 1, 2022 Yamato Holdings Co., Ltd. 16-10, Ginza 2-chome, Chuo-ku, Tokyo President: Yutaka Nagao To Our Shareholders Notice of the 157th Ordinary General Meeting of Shareholders We are pleased to announce that the 157th Ordinary General Meeting of Shareholders of Yamato Holdings Co., Ltd. (hereinafter “the Company”) will be held as described below. In order to prevent the spread of COVID-19 infection, shareholders are urged to refrain from coming to the venue on the date of the meeting, and encouraged to exercise your voting rights prior to the meeting by mail or by electromagnetic means such as the Internet, if at all possible. Please review the “Reference Documents for the General Meeting of Shareholders,” and exercise your voting rights. All votes must be received by 5:00 p.m., Wednesday, June 22, 2022 (JST). When exercising voting rights by mail Please indicate your vote “for” or “against” each of the items on the enclosed Voting Rights Exercise Form, and return the form to the Company by 5:00 p.m., Wednesday, June 22, 2022 (JST). When exercising voting rights via the Internet Please review the “Exercise of Voting Rights via the Internet” on page 3 and enter your vote for each of the items by 5:00 p.m., Wednesday, June 22, 2022 (JST). When exercising voting rights by attending the meeting in person Please bring the enclosed Voting Rights Exercise Form and present the form to the person at reception. 1 The 157th Ordinary General Meeting of Shareholders 1. Date and Time: Thursday, June 23, 2022, 10:00 a.m. (The reception desk will open at 9:00 a.m.) 2. Venue: B1 Hall Bellesalle Shiodome Sumitomo Realty & Development Shiodome Hamarikyu Building 21-1, Ginza 8-chome, Chuo-ku, Tokyo * To prevent the spread of COVID-19, seats will be arranged taking into account the distance between each shareholder. Therefore, please understand that if a large number of shareholders show up, the Company may limit the number of shareholders who can attend. 3. Objectives of Meeting Matters to be reported: 1. Report of the Business Report, the Consolidated Financial Statements, and Audit Reports of the Accounting Auditor and the Audit & Supervisory Board for the Consolidated Financial Statements for the 157th Fiscal Year (from April 1, 2021 to March 31, 2022) 2. Report of the Non-consolidated Financial Statements for the 157th Fiscal Year (from April 1, 2021 to March 31, 2022) Matters to be resolved: Agenda Item 1. Agenda Item 2: Agenda Item 3. Partial Amendments to the Articles of Incorporation Election of Nine (9) Directors Election of One (1) Audit & Supervisory Board Member 4. Items Decided for the Convocation of Meeting (1) Treatment of duplicate voting In the event that you exercise your voting rights, both by mail and via the Internet etc., the vote via the Internet etc. shall be upheld as the valid exercise of your voting rights. In the event of multiple voting via the Internet etc., your last vote shall be upheld as the valid exercise of your voting rights. (2) Diverse exercise of voting rights In the event that you exercise your voting rights diversely, you are required to send notice providing the details and reasons in writing. Please note that you must ensure the notice arrives three days prior to the day of the General Meeting of Shareholders. ◎ If any changes have been made to the items on the attached documents to this convocation notice and/or the Reference Documents for the General Meeting of Shareholders, such changes will be posted on our website. ◎ Operational particulars of the General Meeting of Shareholders on the day of the meeting is provided in “Measures for Preventing Infection of the Novel Coronavirus Disease (COVID-19) at the 157th Ordinary General Meeting of Shareholders” posted separately on the Company’s website. ◎ If future developments necessitate a major change in whether to hold or in the way the general meeting of shareholders will be run, shareholders will be informed via on our website. Website: http://www.yamato-hd.co.jp/ 2 Exercise of Voting Rights via the Internet Method of exercise of voting rights by scanning QR code: “Smart Vote” You can log in the Website for Exercising Voting Rights by scanning the QR code without entering your exercise of voting rights code and password. 1. Please scan QR code provided at the bottom right of the Voting Rights Exercise Form. * QR Code is registered trademarks of DENSO WAVE INCORPORATED. 2. Please follow the directions that appear on the screen to vote “for” or “against” each of the items. Note that exercising voting rights by using “Smart Vote” method is available only once. If you need to change your votes after excising your voting rights, please log in the voting website for a personal computer by using your voting rights exercise code and password provided on the Voting Rights Exercise Form and exercise your voting rights again. * If you rescan the QR code, you can access the Website for Exercising Voting Rights for a personal computer. Method of exercise of voting rights by entering exercise of voting rights code and password 1. Please access the Website for Exercising Voting Rights. https://soukai.mizuho-tb.co.jp/ 2. Please enter your “exercise of voting rights code” provided on the back of the Voting Rights Exercise Form. 3. Please enter your “password” provided on the back of the Voting Rights Exercise Form. each of the items. 4. Please follow the directions that appear on the screen to vote “for” or “against” If you have any inquiries about the operation of a personal computer or a smartphone regarding the exercise of voting rights via the Internet, contact the following: Internet Help Dial: Securities Agent Dept. of Mizuho Trust & Banking Co., Ltd. 0120-768-524 (toll-free only from Japan) (Business hours: 9 a.m. to 9 p.m. (JST) except for the year-end and new year holidays) ◎ Institutional investors may use the electronic voting platform operated by ICJ, Inc. 3 1. Request to shareholders In this General Meeting of Shareholders, In order to prevent the spread of COVID-19 infection, shareholders are urged to refrain from coming to the venue on the date of the meeting, and encouraged to exercise your voting rights prior to the meeting by mail or by electromagnetic means such as the Internet, if at all possible. To prevent the spread of COVID-19, seats will be arranged taking into account the distance between each shareholder. Therefore, please understand that if a large number of shareholders show up, the Company may limit the number of shareholders admitted to enter the venue. At this General Meeting of Shareholders, the Company will livestream the meeting over the Internet so that shareholders may view it from home. The Company also asks that you consider utilizing this method. For details, please refer to page 5 of this notice. 2. Regarding the special measures to be taken at the meeting (1) Shareholders’ body temperatures will be monitored by a telethermographic screening system set up near the reception desk. Shareholders who have a fever of 37.5 degrees Celsius or above will not be admitted entry to the venue. In addition, shareholders who appear to be unwell may be refused entry to the venue. Accordingly, please note that it may take time to enter the venue. (2) The Company asks that shareholders wear a face mask and disinfect their hands using alcohol disinfectant, etc. upon arriving at the venue. Shareholders who do not cooperate with wearing a face mask or disinfecting their hands are refused entry to the venue. Please inform a staff member if you are allergic to alcohol disinfectant, etc. The Company asks that shareholders take precautions to prevent spread of the infection to themselves or others. The Company’s officers and organizing staff members will also be wearing masks. (3) Please be advised in advance that no gifts will be distributed to attendants. (4) If future developments such as the situation regarding the spread of COVID-19 and announcements by the government ahead of the General Meeting of Shareholders necessitate a major change in the holding of the meeting or in the way the meeting will be run, the Company will revise the information at its website below as needed. https://www.yamato-hd.co.jp/investors/stock/meeting/ 4 Directions regarding livestreaming over the Internet The General Meeting of Shareholders will be streamed online via the Internet (video with sound – Japanese only). We encourage shareholders to use this, so that they may view the proceedings from home. When viewing the meeting via livestreaming, you will not be able exercise your voting rights on the day like shareholders attending the meeting are able to, so please exercise your voting rights beforehand. Date and time of livestreaming Thursday, June 23, 2022, from 10:00 a.m. * Access to the livestream is exclusive to shareholders with rights to attend this Ordinary General Meeting of Shareholders. * Out of consideration for the privacy of shareholders attending the meeting in person, footage to be broadcast will be limited to the area where the seats for chairperson and officers are located. Method of viewing the livestream (1) With personal computer 1) Please access the URL below. URL: https://vgm.smart-portal.ne.jp Matters to take care of when viewing Inquiries 2) Please click the login button after entering the ID and password shown on the “Notice Regarding the Livestreaming of the 157th Ordinary General Meeting of Shareholders” enclosed with this notice. (2) With smartphone Shareholders may access the livestream by using a smartphone to scan the QR Code*1 shown on the “Notice Regarding the Livestreaming of the 157th Ordinary General Meeting of Shareholders” enclosed with this notice. Please be aware that livestream viewership of the General Meeting of Shareholders is not legally regarded as attendance at the meeting. Those accessing livestream content may encounter video or audio irregularities due to factors such as the operating environment of their personal computer or smartphone, or telecommunications environment. their Shareholders shall bear their own expenses for connection to the Internet. Shareholders viewing the livestream broadcast will not able to voice questions, etc. at the meeting. Also, because shareholders viewing the livestream broadcast will not be able to exercise their voting rights on the day like shareholders who attend the meeting are able to, the Company asks those shareholders to exercise their voting rights beforehand. It is strictly forbidden to provide your ID and password to a third party by any means, including photo, video, sound recording, data file, etc. If some kind of future development prevents the livestreaming from taking place, shareholders will be informed on our website (https://www.yamato-hd.co.jp/investors/stock/meeting/). If you have any concerns, please contact the Stock Transfer Agency Dept., Mizuho Trust & Banking Co., Ltd. 0120-288-324 (toll-free only from Japan) Business hours: 9 a.m. to 9 p.m. (JST) on weekdays 5 Reference Documents for the General Meeting of Shareholders Agenda Item 1. We propose to make a partial amendment to the Articles of Incorporation as described below. Partial Amendments to the Articles of Incorporation 1. Reasons for Amendment Since the revised provisions provided for in the proviso to Article 1 of the Supplementary Provisions of the Act Partially Amending the Companies Act (Act No. 70 of 2019) are to be enforced on September 1, 2022, the Company proposes to make the following changes to its Articles of Incorporation in preparation for the introduction of the system for providing informational materials for the general meeting of shareholders in electronic format. (1) The proposed Article 15 provides that information contained in the reference materials for the General Meeting of Shareholders, etc. shall be provided electronically, and establishes a provision to limit the scope of matters to be included in the paper copy to be sent to shareholders who have requested it. (2) Since the provisions for Internet Disclosure and Deemed Provision of Reference Documents for the General Meeting of Shareholders, Etc. (Article 15 of the current Articles of Incorporation) will no longer be required, they will be deleted. (3) Accompanying the aforementioned establishment and deletion of a provision, a supplementary provision regarding the effective date, etc. will be established. 2. Details of Proposed Amendment Current Articles of Incorporation and proposed amendments are as follows. Current Articles of Incorporation Proposed Amendments (Underlining denotes amendment.) (Deleted) (Internet Disclosure and Deemed Provision of Reference Documents of the General Meeting of Shareholders, Etc.) Article 15. When the Company convenes a general meeting of shareholders, if it discloses information that is to be stated or presented in the reference documents for the general meeting of shareholders, business report, financial statements and consolidated financial statements through the internet in accordance with the provisions prescribed by the Ministry of Justice Order, it may be deemed that the Company has provided this information to shareholders. (Newly established) (Measures, etc. for Providing Information in Electronic Format) Article 15. When the Company convenes a general meeting of shareholders, it shall take measures for providing information that constitutes the content of reference documents for the general meeting of shareholders, etc. in electronic format. Among items for which the measures for providing information in electronic format will be taken, the Company may exclude all or some of those items designated by the Ministry of Justice Order from statements in the paper-based documents to be delivered to shareholders who requested the delivery of paper-based documents by the record date of voting rights. 6 Current Articles of Incorporation Proposed Amendments (Newly established) (Supplementary Provisions) 1. The deletion of Article 15 (Internet Disclosure and Deemed Provision of Reference Documents for the General Meeting of Shareholders, Etc.) in the pre-amended Articles of Incorporation and the establishment of the new Article 15 (Measures, etc. for Providing Information in Electronic Format) in the amended Articles of Incorporation shall be effective from September 1, 2022, the date of enforcement of the revised provisions, provided for in the proviso to Article 1 of the Supplementary Provisions of the Act Partially Amending the Companies Act (Act No. 70 of 2019) (hereinafter referred to as the “Date of Enforcement”). 2. Notwithstanding the provisions of the preceding paragraph, Article 15 of the pre-amended Articles of Incorporation shall remain effective regarding any general meeting of shareholders held on a date within six months from the Date of Enforcement. 3. These Supplementary Provisions shall be deleted on the date when six months have elapsed from the Date of Enforcement or three months have elapsed from the date of the general meeting of shareholders in the preceding paragraph, whichever is later. 7 Election of Nine (9) Directors Agenda Item 2. The terms of all the nine (9) Directors will expire at the close of this General Meeting of Shareholders. Accordingly, we would like to propose the election of nine (9) Directors. The following are the candidates for Directors. Please note that Mariko Tokuno, Yoichi Kobayashi, Shiro Sugata, Noriyuki Kuga, and Charles Yin are candidates for Outside Directors. No. Name of Candidate Attributes of Candidate Current Position at the Company 1 Yutaka Nagao Reelection Male 2 Toshizo Kurisu New election Male 3 Yasuharu Kosuge New election Male Representative Director, Executive Officer and President Executive Officer and Vice President Senior Managing Executive Officer 4 Kenichi Shibasaki Reelection Male Representative Director 4 years 5 Mariko Tokuno Director 5 years 6 Yoichi Kobayashi Director 4 years 7 Shiro Sugata Director 3 years Reelection Outside Independent Female Reelection Outside Independent Male Reelection Outside Independent Male Reelection Outside Independent Male 8 Noriyuki Kuga Director 2 years 9 Charles Yin New election Outside Independent Male – – – New election New candidates for Directors Reelection Candidates for Directors to be Outside Candidates for Outside Directors reelected Independent Independent officers Board Tenure (at the close of this General Meeting) 5 years – – Attendance to the Board of Directors Meetings 18/18 (100％) – – 18/18 (100％) 16/18 (89％) 18/18 (100％) 18/18 (100％) 18/18 (100％) 8 [Reference] “Policies and procedures for the Board of Directors in appointing and dismissing senior management members and nominating candidates for positions as Directors and Audit & Supervisory Board Members” Under the policy of appointing candidates with abundant experience and considerable insight relating to corporate management and business promotion, a sense of humanity from observing and evaluating from diverse perspectives, ability to grasp the essence of the issues facing the Company, and capabilities that will enhance our management structure, nominations are decided by the Board of Directors following deliberations on appointment and dismissal of Directors, Audit & Supervisory Board Members and Executive Officers by the Nomination and Compensation Committee, which comprises over half Outside Officers, and obtaining the consent of the Audit & Supervisory Board for the nominating Audit & Supervisory Board Members. 9 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 1 Reelection Yutaka Nagao (Aug. 31, 1965) Board tenure (at the close of this General Meeting): 5 years Attendance to the Board of Directors Meetings FY2022/3: 18/18 (100%) Apr. 1988 Apr. 2004 Apr. 2006 Apr. 2009 Apr. 2010 Joined the Company Regional Branch Manager of Yamaguchi Regional Branch Regional Branch Manager of Saitama Regional Branch of Yamato Transport Co., Ltd. General Manager of TSS Sales Promotion Office Executive Officer and President of Kanto Regional Office Apr. 2013 Managing Executive Officer Apr. 2015 Apr. 2015 Executive Officer of the Company Representative Director, Executive Officer and President of Yamato Transport Co., Ltd. Director and Executive Officer of the Company Representative Director, Executive Officer and President (current) Representative Director, Executive Officer and President of Yamato Transport Co., Ltd. (current) Jun. 2017 Apr. 2019 Apr. 2021 (Important Concurrent Positions at Other Organizations) Representative Director, Executive Officer and President of Yamato Transport Co., Ltd. [Reasons for nomination as a candidate for Director] Yutaka Nagao possesses experience and achievements developed in the course of taking on leadership roles in Group management. In that regard, he has acted as Managing Executive Officer and Representative Director and President of the Company’s subsidiary Yamato Transport Co., Ltd, and Director and Executive Officer of the Company. Since April 2019, he has been serving as Representative Director, Executive Officer and President of the Company. Accordingly, in order to enhance the management of the Group and promote its growth, the Company proposes his reelection as Director. 25,100 10 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 2 New election Toshizo Kurisu (Sep. 29, 1960) 30,310 Apr. 1983 Jul. 1999 Jun. 2002 Apr. 2006 Apr. 2012 Apr. 2017 Apr. 2019 Joined the Company General Manager of Accounting Division General Manager of Finance Division Executive Officer of the Company Representative Director, Executive Officer and President of Yamato Financial Co., Ltd. Representative Director and Senior Managing Executive Officer of Yamato Transport Co., Ltd. Representative Director, Executive Officer and President Mar. 2020 Managing Executive Officer of the Company Apr. 2021 Senior Managing Executive Officer of Yamato Transport Co., Ltd. Executive Officer and Vice President of the Company (current) Responsible for Finance, Public Relations and Digital (current) Feb. 2022 Feb. 2022 Feb. 2022 Representative Director, Executive Officer and Vice President of Yamato Transport Co., Ltd. (current) (Important Concurrent Positions at Other Organizations) Representative Director, Executive Officer and Vice President of Yamato Transport Co., Ltd. [Reasons for nomination as a candidate for Director] Toshizo Kurisu possesses experience and achievements developed in the course of taking on leadership roles in Group management. In that regard, he had been acting as Representative Director, Executive Officer and President of the Company’s subsidiary Yamato Financial Co., Ltd. (currently Yamato Transport Co., Ltd.), Representative Director, Executive Officer and President of Yamato Transport Co., Ltd., Executive Officer, Managing Executive Officer, and Executive Officer and Vice President of the Company. Accordingly, in order to enhance the management of the Group and promote its growth, the Company proposes his election as a Director 11 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned Apr. 1985 Jun. 1997 Feb. 2002 Apr. 2004 May 2006 Joined the Company Project Manager of Work System Project Regional Branch Manager of Okayama Regional Branch Regional Branch Manager of Yokohama Regional Branch Regional Branch Manager of Kita Tokyo Regional Branch of Yamato Transport Co., Ltd. General Manager of Corporate Sales Division Executive Officer Apr. 2011 Apr. 2014 Apr. 2016 Managing Executive Officer Apr. 2019 Managing Executive Officer of the Company Apr. 2019 3 New election Yasuharu Kosuge (Jun. 21, 1961) Apr. 2021 Feb. 2022 Feb. 2022 Feb. 2022 Representative Director, Executive Officer and President of Yamato Logistics Co., Ltd. Senior Managing Executive Officer of Yamato Transport Co., Ltd. Senior Managing Executive Officer of the Company (current) Responsible for Management Strategy and Human Resources (current) Representative Director, Senior Managing Executive Officer of Yamato Transport Co., Ltd. (current) 4,700 (Important Concurrent Positions at Other Organizations) Representative Director, Senior Managing Executive Officer of Yamato Transport Co., Ltd. [Reasons for nomination as a candidate for Director] Yasuharu Kosuge possesses experience and achievements developed in the course of taking on leadership roles in Group management. In that regard, he had been acting as Representative Director, Executive Officer and President of the Company’s subsidiary Yamato Logistics Co., Ltd. (currently Yamato Transport Co., Ltd.), Representative Director and Senior Managing Executive Officer of Yamato Transport Co., Ltd., Managing Executive Officer, and Senior Managing Executive Officer of the Company. Accordingly, in order to enhance the management of the Group and promote its growth, the Company proposes his election as a Director 12 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 4 Reelection Kenichi Shibasaki (Oct. 16, 1955) Board tenure (at the close of this General Meeting): 4 years Attendance to the Board of Directors Meetings FY2022/3: 18/18 (100%) Apr. 1980 Jun. 1997 Jun. 1999 Apr. 2003 Feb. 2006 Joined the Company Regional Branch Manager of Saitama Regional Branch General Manager of Education Division General Manager of Operation Division Representative Director, Executive Officer and President of Yamato Financial Co., Ltd. Executive Officer of the Company Apr. 2006 Apr. 2012 Managing Executive Officer Apr. 2016 Apr. 2017 Senior Managing Executive Officer Responsible for Financing Strategy and Coordinator-General of Investor Relations Strategy Director and Senior Managing Executive Officer Representative Director, Executive Officer and Vice President Supervisor of ESG Strategy, Marketing Strategy, Public Relations Strategy, Financing Strategy, Investor Relations Strategy, and Legal Strategy, and responsible for Internal Audit Responsible for overseeing Managing Section Jun. 2018 Apr. 2019 Apr. 2019 Mar. 2020 Feb. 2022 Representative Director of the Company (current) (Important Concurrent Positions at Other Organizations) None [Reasons for nomination as a candidate for Director] Kenichi Shibasaki possesses experience and achievements developed in the course of taking on leadership roles in Group management. In that regard, he had been acting as Director and Senior Managing Executive Officer since June 2018, after having served as Representative Director, Executive Officer and President of the Company’s subsidiary Yamato Financial Co., Ltd. (currently Yamato Transport Co., Ltd.) and Executive Officer, Managing Executive Officer and Senior Managing Executive Officer of the Company. Since April 2019, he has been serving as Representative Director, Executive Officer and Vice President. Accordingly the Company proposes his reelection as Director. 35,800 13 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned Reelection Outside Independent Mariko Tokuno (Oct. 6, 1954) 5 Board tenure (at the close of this General Meeting): 5 years Attendance to the Board of Directors Meetings FY2022/3: 16/18 (89%) Jan. 1994 Apr. 2002 Mar. 2004 Aug. 2010 Sep. 2013 Jun. 2017 Joined Louis Vuitton Japan KK Senior Director for Sales Administration Vice President of Tiffany & Co. Japan Inc. Representative Director and President of Christian Dior Japan KK Representative Director, President and CEO of Ferragamo Japan KK Director of the Company (current) (Important Concurrent Positions at Other Organizations) Outside Director of HAPPINET CORPORATION Outside Director of Mitsubishi Materials Corporation Outside Director of Shiseido Company, Limited [Reasons for nomination as a candidate for Outside Director and expected roles] Mariko Tokuno possesses abundant experience and considerable insight, particularly in the fields of marketing/sales and global business as a corporate manager. Accordingly, the Company has determined that utilizing this insight to furnish advice on the Company’s general management from a managerial standpoint in addition to the standpoint of customers and employees, particularly regarding business execution, business strategy, and human resources strategy, will contribute to further enhancing our management structure, and proposes her reelection as Outside Director. Furthermore, if she is elected, the Company plans for her to contribute to selecting Company officer candidates and deciding officer remuneration and other compensation as a member of the Nomination and Compensation Committee, enlisting her position of objectivity and neutrality. 4,200 14 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 6 Reelection Outside Independent Yoichi Kobayashi (Jul. 21, 1949) Board tenure (at the close of this General Meeting): 4 years Attendance to the Board of Directors Meetings FY2022/3: 18/18 (100%) Joined ITOCHU Corporation Executive Officer Apr. 1973 Jun. 2004 Apr. 2006 Managing Executive Officer Jun. 2006 Apr. 2008 Apr. 2011 Representative Executive Managing Director Representative Senior Managing Director Representative Director and Executive Vice President Senior Advisor Vice Chairman Director of the Company (current) Apr. 2015 Apr. 2016 Jun. 2018 (Important Concurrent Positions at Other Organizations) None [Reasons for nomination as a candidate for Outside Director and expected roles] Yoichi Kobayashi possesses abundant experience and considerable insight, particularly in the fields of marketing/sales and global business as a corporate manager. Accordingly, the Company has determined that utilizing this insight to furnish advice on the Company’s general management from a managerial standpoint, particularly regarding business execution, business strategy, and investment strategy, will contribute to further enhancing our management structure, and proposes his reelection as Outside Director. Furthermore, if he is elected, the Company plans for him to contribute to selecting Company officer candidates and deciding officer remuneration and other compensation as a member of the Nomination and Compensation Committee, enlisting his position of objectivity and neutrality. 5,200 15 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned Apr. 1972 Jan. 1993 Jun. 2000 Apr. 2004 Jun. 2004 Mar. 2005 Oct. 2014 Jun. 2016 Jul. 2017 Jun. 2019 Joined USHIO INC. President of BLV LICHT- UND VAKUUMTECHNIK GmbH Director and Corporate Senior Vice President of USHIO INC. Director and Corporate Executive Vice President Representative Director and Corporate Executive Vice President President and CEO Director and Corporate Advisor Corporate Advisor Special Corporate Advisor Director of the Company (current) (Important Concurrent Positions at Other Organizations) Outside Director of JSR Corporation (scheduled to retire in Jun. 2022) Outside Director of Yokogawa Electric Corporation [Reasons for nomination as a candidate for Outside Director and expected roles] Shiro Sugata possesses abundant experience and considerable insight, particularly in the fields of marketing/sales, IT/digital technology and global business as a corporate manager. Accordingly, the Company has determined that utilizing this insight to furnish advice on the Company’s general management from a managerial standpoint, particularly regarding business execution, business strategy, increasing productivity, and cost structure reform, will contribute to further enhancing our management structure, and proposes his reelection as Outside Director. Furthermore, if he is elected, the Company plans for him to contribute to selecting Company officer candidates and deciding officer remuneration and other compensation as a member of the Nomination and Compensation Committee, enlisting his position of objectivity and neutrality. 7 Reelection Outside Independent Shiro Sugata (Nov. 17, 1949) Board tenure (at the close of this General Meeting): 3 years Attendance to the Board of Directors Meetings FY2022/3: 18/18 (100%) 0 16 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 8 Reelection Outside Independent Noriyuki Kuga (Aug. 25, 1955) Board tenure (at the close of this General Meeting): 2 years Attendance to the Board of Directors Meetings FY2022/3: 18/18 (100%) Apr. 1979 Apr. 2002 Oct. 2004 Oct. 2006 Jun. 2007 Jun. 2011 Jun. 2016 Jun. 2020 Joined Tokyo Electron Ltd. Vice President & General Manager President & Representative Director, Tokyo Electron BP Ltd. Executive Vice President of TOKYO ELECTRON DEVICE LIMITED Corporate Director and Executive Vice President Senior Executive Vice President & Representative Director Chairman of the Board Director of the Company (current) (Important Concurrent Positions at Other Organizations) None [Reasons for nomination as a candidate for Outside Director and expected roles] Noriyuki Kuga possesses abundant experience and considerable insight, particularly in the fields of personnel/labor management, finance/accounting and global business as a corporate manager. Accordingly, the Company has determined that utilizing this insight to furnish advice on the Company’s general management from a managerial standpoint, particularly regarding business execution, financial strategy, and corporate governance, will contribute to further enhancing our management structure, and proposes his reelection as Outside Director. Furthermore, if he is elected, the Company plans for him to contribute to selecting Company officer candidates and deciding officer remuneration and other compensation as a member of the Nomination and Compensation Committee, enlisting his position of objectivity and neutrality. 600 17 No. Name of Candidate (Date of Birth) Brief Background, Position and Responsibility at the Company Number of Shares Owned 9 New election Outside Independent Charles Yin (May 29, 1964) Feb. 1990 Mar. 1992 Sep. 1996 Aug. 2007 Jul. 2018 Joined L3, Inc. (New York) Vice President Joined Fuji Xerox Asia Pacific Pte. Ltd. (Singapore) CEO of Worldwide City Group (Hong Kong) Executive Chairman (current) (Important Concurrent Positions at Other Organizations) Chairman of China-Japan CEO Forum Chairman of China-Japan Asia CEO Forum [Reasons for nomination as a candidate for Outside Director and expected roles] Charles Yin possesses abundant experience and considerable insight, particularly in the fields of marketing/sales, IT/digital technology and global business as a corporate manager. Accordingly, the Company has determined that utilizing this insight to furnish advice on the Company’s general management from a managerial standpoint, particularly regarding business execution and global business strategy, will contribute to enhance our management structure, and proposes his reelection as Outside Director. Furthermore, if he is elected, the Company plans for him to contribute to selecting Company officer candidates and deciding officer remuneration and other compensation as a member of the Nomination and Compensation Committee, enlisting his position of objectivity and neutrality. 0 18 Notes: 1. There are no particular vested interests between the Company and the candidates. 2. Additional information regarding the candidates of Outside Directors is as follows. (1) (2) (3) Independent officers The Company appointed Mariko Tokuno, Yoichi Kobayashi, Shiro Sugata and Noriyuki Kuga as independent officers provided for under the provisions of Tokyo Stock Exchange, Inc. and registered the individuals as such with that exchange. The Company plans on having the officers keep their position if their reelection is approved. In addition, if the election of Charles Yin is approved, the Company will appoint him as an independent officer. Mariko Tokuno, Yoichi Kobayashi, Shiro Sugata, Noriyuki Kuga, and Charles Yin(*) satisfy the requirements for Criteria for Determining Independence of the Company on page 23. (*) Worldwide Citigroup (Hong Kong), of which Mr. Charles Yin is Executive Chairman, and the Company entered into an advisory agreement for the period October 1, 2014 through September 30, 2019 to advise the Company on its global business strategy. The fee for this service was US$50,000 per year, and the Company concludes that there are no independence concerns The number of years as Outside Director of the Company Mariko Tokuno, Yoichi Kobayashi, Shiro Sugata and Noriyuki Kuga have been serving as the Company’s Outside Directors for five years, four years, three years and two years, respectively, as of the closing of this General Meeting of Shareholders. Inappropriate conducts of business occurred and corrective and preventive measures implemented against such conducts during the past five years at another company at which a candidate served as a director Since June 2016, Mariko Tokuno has been serving as an Outside Director of Mitsubishi Materials Corporation. During this time, cases have been discovered in which said Mitsubishi Materials Corporation’s consolidated subsidiaries Mitsubishi Cable Industries, Ltd., Mitsubishi Shindoh Co., Ltd., Mitsubishi Aluminum Co., Ltd., Tachibana Metal MFG Co., Ltd, and Diamet Corporation manufactured and sold products that deviated from customer standards or internal company specifications due to misconduct, including the rewriting of data. In addition, Mitsubishi Materials Corporation also received revocation of JIS certification for copper slag aggregate manufactured at its Naoshima Smelter & Refinery. Although she was unaware of each of these cases until they were revealed, as an Outside Director at Mitsubishi Materials Corporation she has routinely spoken out from the perspective of enhancing governance structure. Since each of these cases was revealed, she has been conducting investigations relating to these cases, identifying root causes, and providing advice on measures to prevent reoccurrences. After Mitsubishi Materials Corporation Group formulated measures etc. to enhance governance structure, she has been making efforts to further enhance governance structure by overseeing the progress of these measures and providing the Board of Directors with necessary comments and advice regarding issues and the like. 3. Agreement on liability limitation The Company has concluded an agreement with Mariko Tokuno, Yoichi Kobayashi, Shiro Sugata and Noriyuki Kuga regarding liability limitation according to Article 423, paragraph (1) of the Companies Act. According to the agreement, the maximum liability amount is the minimum amount stipulated by Article 425, paragraph (1) of the Companies Act. If the reelection proposal is approved, the Company will continue its agreement with them. In addition, if the election of Charles Yin is approved, the Company will conclude the said agreement with him. 4. Directors and officers liability insurance policy The Company has entered into a directors and officers liability insurance policy, as provided for in Article 430-3, paragraph (1) of the Companies Act, with an insurance company. The policy covers Directors, Audit & Supervisory Board Members and Executive Officers of the Company and its subsidiaries. If the election of each candidate is approved, they will be included as the insured. The summary of the policy contents is as written on page 46 in Business Report. In addition, when the policy is renewed, the Company plans to renew the policy with the same terms. 19 Election of One (1) Audit & Supervisory Board Member Agenda Item 3. The term of one (1) Audit & Supervisory Board Member, namely Mamoru Matsuno, will expire at the close of this General Meeting of Shareholders. Accordingly, we would like to propose the election of one (1) Audit & Supervisory Board Member. The following are the candidates for Audit & Supervisory Board Members. In addition, the Audit & Supervisory Board has already approved this proposal. Name of Candidate (Date of Birth) Brief Background and Position at the Company Number of Shares Owned New election Tsutomu Sasaki (Nov. 13, 1964) Apr. 2021 Senior Managing Executive Officer of the Company Apr. 2021 Senior Managing Executive Officer of Yamato Transport Co., Ltd. 12,600 Feb. 2022 Attached to the President of the Company (current) Apr. 1987 Apr. 2005 Jul. 2006 Apr. 2007 Apr. 2009 Apr. 2011 Joined the Company General Manager of TA-Q-BIN Sales Division III General Manager of Product Development Division of Yamato Transport Co., Ltd. General Manager of Manufacturer Solution Sales Division General Manager of Global Sales Division General Manager of Sales Strategy Division Apr. 2017 Executive Officer of the Company Sep. 2018 Representative Director, Executive Officer and President of Yamato Logistics Co., Ltd. Apr. 2019 Managing Executive Officer of the Company Mar. 2020 Representative Director and Senior Managing Executive Officer of Yamato Transport Co., Ltd. (Important Concurrent Positions at Other Organizations) None [Reasons for nomination as a candidate for Audit & Supervisory Board Member] The Company has determined that Tsutomu Sasaki will provide appropriate oversight of Group-wide management from an objective perspective based on his experience and achievements developed in the course of taking on leadership roles in Group management. In that regard he had been acting as Representative Director, Executive Officer and President of Yamato Logistics Co., Ltd. (currently Yamato Transport Co., Ltd.) and Executive Officer, Managing Executive Officer and Senior Managing Executive Officer of the Company. Accordingly the Company propose his election as Audit & Supervisory Board Member. Notes: 1. There are no particular vested interests between the Company and the candidate. 2. Agreement on liability limitation If the election of Tsutomu Sasaki is approved, the Company will conclude an agreement with him regarding liability limitation according to the Companies Act, Article 423, Paragraph 1. According to the agreement, the maximum liability amount is the minimum amount stipulated by the Companies Act, Article 425, Paragraph 1. 3. Directors and officers liability insurance policy The Company has entered into a directors and officers liability insurance policy, as provided for in Article 430-3, paragraph (1) of the Companies Act, with an insurance company. The policy covers Directors, Audit & Supervisory Board Members and Executive Officers, etc. of the Company and its subsidiaries. If the election of Tsutomu Sasaki is approved, he will be included as the insured. 20 The summary of the policy contents is as written on page 46 in Business Report. In addition, when the policy is renewed, the Company plans to renew the policy with the same terms. 21 [Reference] Management Structure After Agenda Items 2 and 3 Are Approved (Planned) Kenichi Shibasaki Director ● ● ● Expertise and experience eettimmoC noitasnepmoC dna noitanmoNi tnemeganam etaroproC tnemeganam robal /gnitekraM seasl /lennosreP gnitnuocca /ecnanFi tnemeganam ksir /sriaffa lageLl ygoonhcet latigdi /TI● ● ● ● laboGl● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ○ ○ ○ ○ ○ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Name Position Representative Director, Executive Officer and President ○ ● ● Yutaka Nagao Toshizo Kurisu Yasuharu Kosuge Mariko Tokuno Yoichi Kobayashi Shiro Sugata Noriyuki Kuga Charles Yin Yoshihiro Kawasaki Tsutomu Sasaki Takashi Yamashita Ryuji Matsuda Yoshihide Shimoyama Notes: Representative Director, Executive Officer and Vice President Representative Director, Executive Officer and Vice President Director Director Director Director Director Full-time Audit & Supervisory Board Member Full-time Audit & Supervisory Board Member Audit & Supervisory Board Member Audit & Supervisory Board Member Audit & Supervisory Board Member 1. Full-time Audit & Supervisory Board Members will be determined at the Audit & Supervisory Board meeting after the close of this General Meeting of Shareholders, and Directors with titles and members of the Nomination and Compensation Committee will be determined at a subsequent meeting of the Board of Directors. 2. The Board of Directors and the Nomination and Compensation Committee will be chaired by Shiro Sugata. 3. The above list shows fields in which each of them has more expert knowledge in light of their experience and other factors, and does not cover all their knowledge. i edstuO ○ ○ ○ ○ ○ ○ ○ ○ 22 Criteria for Determining Independence in Electing Outside Officers of the Yamato Group 1. Criteria for determining independence Yamato Holdings Co., Ltd. has established the following criteria for determining the independence of the Outside Directors and Outside Audit & Supervisory Board Members of the Company (hereinafter collectively referred to as “Outside Officers”). 2. Independence requirements for Outside Officers A party with respect to whom any of the following apply shall be deemed as not having met the requirements for independence of an Outside Director or Outside Audit & Supervisory Board Member of the Company. (1) A party who is a major business partner of either the Company or a Group company (hereinafter collectively referred to as the “Company”), or otherwise if such party is a corporation or other such entity, a person who executes business thereof; (2) A major business partner of the Company, or otherwise if such party is a corporation or other such entity, a person who executes business thereof; (3) A consultant, accounting professional or legal professional who receives substantial monetary consideration and/or other economic benefits from the Company besides officer remuneration; (4) A consultant, accounting professional, legal professional or other such professional who is a member of a corporation or other such entity that provides professional services acting as a major business partner of the Company; (5) A major shareholder of the Company, or otherwise if such major shareholder is a corporation or other such entity, a person who executes business thereof; (6) A recipient of donations from the Company or a person who executes business thereof; (7) A person who now serves or has served in the past as a Director (excluding Outside Director), Audit & Supervisory Board Member (excluding Outside Audit & Supervisory Board Member), Executive Officer, or employee of either the Company or one of its subsidiaries; (8) A close relative of a Director, Audit & Supervisory Board Member, Executive Officer or (9) A close relative of a person (excluding inconsequential persons) with respect to whom any of employee of the Company; the aforementioned apply. Basic Views on Corporate Governance Based on its corporate philosophy, the Yamato Group carries out business activities in accordance with the law and social norms and actively promotes compliance management. Striving to maximize corporate value by effectively utilizing the management resources of the Group is one of the top priorities of management, and we have implemented measures and bolstered management systems as part of our corporate governance initiative. 23 Corporate Governance System The Company is a company with an audit & supervisory board. In addition to important management decision-making and the supervision of business execution by the Board of Directors, Audit & Supervisory Board members and the Audit & Supervisory Board, which are independent from the Board of Directors, shall audit the status of execution of duties by Directors. Also, to complement the functions of the Board of Directors, the Company established a Nomination and Compensation Committee comprising a majority of Outside Directors. At the same time, the Company has adopted an executive officer system to ensure prompt decision-making related to business execution. 24 (Attached Documents) 1. Status of the Corporate Group (1) Operating Performance Business Report (From April 1, 2021 to March 31, 2022) During the fiscal year under review, there were signs of improvement in the economic sentiment, due to the gradual resumption of economic activity following the full lifting of the novel coronavirus disease (COVID-19) state of emergency declarations. However, the outlook for full-scale economic recovery remains unclear, due to global supply chain disruptions, the weakening of the yen, high crude oil prices, as well as the instability in international affairs leading to the rise in natural resource prices. Meanwhile, COVID-19 has accelerated growth in the e-commerce domain across all industries amid a scenario of changes in consumer behavior and lifestyles brought about by developments such as companies promoting telework arrangements and a shift to online services in the fields of medicine and education. Under such circumstances, the Yamato Group embarked on a new Group management structure centered on the “New Yamato Transport,” which combines management resources of our respective Group companies, with the aim of sustainably increasing its corporate value through contribution to the creation of an enriched society as stated under its Management Philosophy. In addition, we took steps to furthermore provide comprehensive value by meeting the needs of our customers and society by transforming supply chains in response to changing lifestyles and changing distribution structure, based on the medium-term management plan, “One Yamato 2023,” with the fiscal year ending March 31, 2024 set as its final fiscal year. Our consolidated financial results for the fiscal year ended March 31, 2022 were as follows. Item Change Growth (%) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) Operating revenue Operating profit Ordinary profit Profit attributable to owners of parent 1,695,867 1,793,618 97,750 92,121 94,019 56,700 77,199 84,330 55,956 (14,921) (9,689) (744) 5.8 (16.2) (10.3) (1.3) Operating revenue amounted to 1,793,618 million yen, up 97,750 million yen from the previous fiscal year. This is largely attributable to our having achieved an increase in parcel delivery volume as a result of taking action in the burgeoning e-commerce domain, and also a result of our having focused on optimizing logistics for customers. Operating expenses amounted to 1,716,418 million yen, up 112,672 million yen from the previous fiscal year. This was due to factors that include an increase in costs associated with the promotion of the medium-term management plan “One Yamato 2023,” such as the fact that we are in the process of optimizing operations in the e-commerce logistics network, which are building to accommodate the growing demand for e-commerce, and our existing network, along with higher unit prices of fuel. As a result, operating profit amounted to 77,199 million yen, down 14,921 million yen from the previous fiscal year. 25 Ordinary profit amounted to 84,330 million yen, down 9,689 million yen year-on-year, despite the booking of 4,510 million yen in gain on investments in investment partnerships. Profit attributable to owners of parent amounted to 55,956 million yen, and the Company was able to limit the decline from the previous fiscal year to 744 million yen, mainly due to booking of 15,312 million yen of disposal gains of investment securities as extraordinary income, in part due to the disposal of strategic holdings of shares, the booking of 14,999 million yen in loss on revision of retirement benefit plan as extraordinary losses, as well as the decline in taxable profit for the period as a result of losses from the disposal of affiliate company shares. In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review. In addition, effective from the fiscal year under review, the Company and its domestic consolidated subsidiaries have changed from the declining-balance method to the straight-line method as their depreciation method for property, plant and equipment in order to allocate costs in a manner that better reflects actual use of assets, and have accordingly modified useful lives of some vehicles. Details are shown on “Notes to Consolidated Financial Statement, 2. Changes in Accounting Policies.” In January 2022, the Company transferred 51% of the Company’s holdings of issued common shares of Yamato Home Convenience Co., Ltd. (“YHC”) to ART CORPORATION. Effective from the end of the fiscal year under review, the Company will make YHC an equity method affiliate rather than its current designation as a consolidated subsidiary, given that the Company holds 49% of the voting rights in YHC, down from 100% previously as a result of the transfer of shares. Initiatives for the entire Yamato Group The Yamato Group has been working to address the COVID-19 pandemic, and to ensure that customers can use TA-Q-BIN with peace of mind, we have continued to take steps that include making sure that employees practice full hygiene management, promoting workplace vaccinations among employees who wish to be vaccinated, and otherwise placing focus on implementing contact-free deliveries and other infection prevention measures when interacting with customers, using our website to share information, and continuing to provide logistics services, including TA-Q-BIN. Based on our medium-term management plan “One Yamato 2023,” which seeks to provide comprehensive value that addresses the diversifying needs of customers and society, we are working on the following initiatives. i) Increasing productivity across the entire Yamato Group In order to address the changing and increasingly diverse needs of our customers, we have continued working to optimally allocate the Group’s management resources while striving to improve the accuracy of our demand and operating amount forecasts on the basis of data analysis. In addition, we have been coordinating efforts to the Retail Business Unit, Corporate Business Unit, Transportation Function Division, and Digital Function Division with respect to optimizing and standardizing our delivery process by transforming work operations, and shifting to automation and digitization, thereby increasing the amount of time frontline personnel interact with our customers, expanding our collection and delivery capabilities, and enabling us to make improvements in safety and quality. In September 2021, Yamato Management Service Co., Ltd., which handles bookkeeping and accounting operations as well as personnel affairs for respective companies of the Yamato Group, was combined with Yamato Transport Co., Ltd. by means of absorption-type merger, thereby enabling us to make progress in achieving optimal allocations of specialist human resources in our accounting and HR operations. Moreover, our Professional Service Function Division has been operating under the “One Yamato Structure” in spearheading efforts to reduce the administrative and indirect operations workload of our frontline personnel by engaging in business process re-engineering (BPR), which has involved standardizing and digitizing such tasks. ii) Growing operating revenue through growth in the corporate client domain For our corporate clients who have been coping with changes in consumer behavior and lifestyles caused by the spread of COVID-19, we have been working to build transportation 26 and delivery networks with the addition of the network for corporate enterprises to the TA-Q-BIN and EAZY transportation modes, cater to the needs for international transportation, as well as improve the profitability of our international business. In addition, we have been continuing to tap the expanding e-commerce (EC) demand through the optimal allocation of EAZY CREW delivery partners and our sales drivers, as well as establishing an e-commerce logistics network with a more simple sorting, transportation and last-mile delivery operation, while also proposing solutions in upstream domains of logistics, particularly in areas that include e-commerce company procurement and inventory liquidation. We have also been placing focus on providing new value in part by launching the “digital return and sending service” for e-commerce companies, which entails shifting to digital procedures for returns of purchased merchandise, simplifying procedures in terms of hassles encountered when purchasers would previously make a return request by telephone or in preparing delivery slips, and making it possible to return items without the need for delivery slips from nearby business offices, PUDO Station parcel delivery lockers, and certain convenience stores. Moreover, we served as the official logistics services partner of the Tokyo 2020 Olympic and Paralympic Games held from July to September 2021, which involved facilitating smooth and safe operations with respect to logistics design and implementation during the event by providing comprehensive logistics services in addition to TA-Q-BIN. iii) Promoting strategies for achieving sustainable enhancement of corporate value With the aim of sustainably enhancing our corporate value, we have engaged in initiatives under our medium-term management plan “One Yamato 2023” plan that involve promoting data and innovation strategies, reforming management structure and reinforcing governance, engaging in HR strategy which supports “Innovating Delivery Business,” improving capital efficiency, and strengthening sustainable management. Our data strategy aims at preparing and making use of digital data and enhancing our digital platform to further sophisticate our use of data. In the fiscal year under review, we further enhanced the accuracy of demand forecasting, as well as the real-time communication platform that supports the EAZY operations. In terms of our innovation strategy, we moved forward with initiatives to promote open innovation, which entails discovering and collaborating with startups, as well as investing in such startups with the aim of creating new businesses. In the fiscal year under review, we invested in startups with state-of-the-art technologies, such as cross border fashion e-commerce site operator Sixty Percent Co., Ltd., and Pale Blue Inc., which develops propulsion systems for ultra-small satellites that use water as fuel, through the “KURONEKO Innovation Fund.” We are also working on strengthening governance through efforts to strengthen corporate governance. This will entail separating management supervision and execution, maintaining and enhancing management transparency, as well as enhancing governance with an emphasis on decision-making speed. When it comes to HR strategy which supports “Innovating Delivery Business,” we are using a specialist personnel system for employees engaged in instructing safety as well as planning, and conducting training programs through the Yamato Digital Academy with the aim of raising the digital literacy of all employees including senior management, as well as developing digital talent as quickly as possible. As for strengthening sustainable management, in order to strike a balance between sustainable growth and the development of a sustainable society, we have been engaging in business in a manner that involves considering the environment and society, in part by streamlining transportation in a manner that involves attentively connecting people with resources and data. These efforts have been underpinned by our dual visions, one of which is “Connect. Deliver the Future via Green Logistics.” and the other of which is, “Through Co-Creation and Fair Business Activities, Help Create a Society That ‘Leaves No One Behind.” In the fiscal year under review, we established an organizational structure to manage sustainability efforts of the whole Group, as well as setting the “Yamato Group Environmental Policy” (August 2021), “Yamato Group Human Rights Policy” (December 2021), followed by 27 “Yamato Group Responsible Procurement Policy” and “Yamato Group Business Partner Guidelines” in January 2022. Business strategies of each segment The Company has changed its classification of reportable segments, effective from the fiscal year under review. As such, figures for the previous fiscal year have been restated to the new reportable segments to enable segment comparisons. Retail Business Unit The Retail Business Unit provides high-quality parcel delivery services such as TA-Q-BIN and has otherwise been working to provide value that addresses needs of our customers by drawing on the distinctive characteristics of TA-Q-BIN in terms of its points of contact with a broad range of customers. The business unit continued to focus on proposing solutions that draw on the Group’s management resources in collaboration with the Corporate Business Unit, in a manner whereby frontline personnel grasp customer changes associated with lifestyles and the business environment, thereby serving as a starting point for business of the entire Yamato Group. Moreover, it has also been working in collaboration with the Platform Function Division, in part through efforts to provide services that make delivery and pick-up more convenient, particularly the “Kuroneko Members” service, which has more than 50 million registered members, and the “Yamato Business Members” service, which is used by more than 1.3 million corporate clients, and also through efforts to upgrade various services other than those involving transportation that are beneficial in terms of people’s lives and business. During the fiscal year under review, we took steps to improve customer convenience with respect to the “TA-Q-BIN Request by Smartphone” service, which enables customers to complete TA-Q-BIN sending procedures using their smartphones via a service-specific website that makes it possible for them to take care of everything from preparing shipping labels to paying TA-Q-BIN fees. Such improvements included expanding the list of delivery options available in terms of targeting leisure interests through delivery options such as Golf TA-Q-BIN, Ski TA-Q-BIN, Airport TA-Q-BIN, and Round-Trip TA-Q-BIN, and also adding the online receipt download function, as well as making it possible to send parcels from PUDO Stations without human interaction. In March 2022, we improved the convenience of the various functions offered to Kuroneko Members, including better visibility and control functions of the app and website, as well as real-time linkage and integration of customer and parcel information using the new data platform. iii) Working in collaboration with the Transportation Function Division and Digital Function Division, the Retail Business Unit continued to strive to improve the accuracy of demand and operating amount forecasts in respective geographic regions, and has been endeavoring to increase productivity by appropriately allocating personnel and by heightening efficiency of collection and delivery and of our trunk-route transportation. In terms of profitability, operating revenue from customers amounted to 893,396 million yen, up 1.2% from the previous fiscal year, mainly as a result of the business unit having engaged in efforts to optimally deliver parcels in alignment with diversifying needs and it having focused on acquiring parcels from small businesses in col