Notes to Consolidated Financial Statements[PDF:167KB]








FINANCIAL SECTION

Notes to Consolidated Financial Statements

Year Ended March 31, 2021

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.

In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2020 consolidated financial statements to conform them to the classifications and presentations used in 2021.

The consolidated financial statements are stated in Japanese yen, the currency of the country in which Yamato Holdings Co., Ltd. (the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥110.71 to $1, the approximate rate of exchange at March 31, 2021. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  1. Consolidation-The consolidated financial statements as of March 31, 2021 and 2020, include the accounts of the Company and its 39 significant subsidiaries (together, the “Group”).

Effective from the fiscal year ended March 31, 2021, Yamato Lease Co., Ltd. was excluded from the scope of consolidation due to the partial transfer of shares, and KURONEKO Innovation Fund L.P. was newly established and is included in the scope of consolidation.

Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able to

exercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method.

The unconsolidated subsidiaries, whose combined assets, net sales, profit and retained earnings in the aggregate are not significant to the consolidated financial statements, have not been consolidated with the Company.

There were 23 (19 in 2020) affiliates accounted for by the equity method.

Effective from the fiscal year ended March 31, 2021, Yamato Lease Co., Ltd. was excluded from the scope of consolidation due to the partial transfer of shares and is accounted for by the equity method, and VIVL Pte. Ltd. and two other companies are included in the scope of the equity method due to GDEX BHD., an affiliate accounted for using equity method, newly acquiring their shares. GD EXPRESS CARRIER BHD. has changed the company name to GDEX BHD. on December 17, 2020.

Investments in the unconsolidated subsidiaries and several affiliates not accounted for by equity method are stated at cost, less a valuation allowance representing possible losses on the investments that are deemed to be other than tempo- rary. If the equity method of accounting had been applied to the investments in such companies, the effect on the accompanying consolidated financial statements would not be material.

All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit included in assets resulting from transactions within the Group is also eliminated.

b. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements- Under Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements,” the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events under similar circumstances should in principle be unified for the preparation of the consolidated financial statements. However, financial statements prepared by foreign subsidiaries in accordance with either International Financial Reporting Standards or generally accepted accounting principles in the United States of America tentatively may be used for the consolidation process, except for the following items which should be adjusted in the consolidation process so that profit is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting; and (e) recording a gain or loss

FINANCIAL SECTION

through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in the fair value of an investment in an equity instrument, where a foreign subsidiary elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.

c. Unification of Accounting Policies Applied to Foreign Affiliated Companies for the Equity Method-ASBJStatement No. 16, “Accounting Standard for Equity Method of Accounting for Investments,” requires adjustments to be made to conform the affiliate’s accounting policies for similar transactions and events under similar circumstances to those of the parent company when the affiliate’s financial statements are used in applying the equity method, unless it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign affiliated companies in accordance with either International Financial Reporting Standards or generally accepted accounting principles in the United States of America tentatively may be used in applying the equity method if the following items are adjusted so that profit is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model accounting for prop- erty, plant and equipment and investment properties and incorporation of the cost model accounting ; and (e) recording a gain or loss through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporarydeclines in the fair value of an investment in an equity instrument, where a foreign affiliate elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.

d. Recognition of Operating Revenues-The Group recognizes freight charge income as operating revenue at the time when freight has been received from the shipping customer for transportation.

Fees from customers based on installment sales contracts are recognized by the equal installment method.

e. Cash Equivalents-Cash equivalents in the consolidated statement of cash flows are short-term investments that are readily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents in the consolidated statement of cash flows include time deposits, certificates of deposit, and mutual funds investing in bonds that represent short-term investments, all of which mature or become due within three months of the date of acquisition.

The difference between cash and cash equivalents in the accompanying consolidated balance sheet and cash and cash equivalents in the accompanying consolidated statement of cash flows was as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Cash and cash equivalents presented in the consolidated balance sheet

¥241,523

¥197,227

$2,181,584

Time deposits due beyond three months

(238)

(564)

(2,152)

Cash and cash equivalents presented in the consolidated statement of cash flows

¥241,285

¥196,663

$2,179,432

f. Inventories-Inventories are stated at the lower of cost determined by the first-in,first-out method or net selling value.

g. Marketable and Investment Securities-Marketable and investment securities are classified and accounted for, depending on management’s intent, as follows: (1) trading securities, which are held for the purpose of earning capital gains in near term, are reported at fair value, and the related unrealized gains and losses are included in earnings; (2) held- to-maturity debt securities, for which there is a positive intent and ability to hold to maturity, are reported at amortized cost; and (3) available-for-sale securities, which are not classified as either of the aforementioned securities, are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity. The Group had no trading securities at March 31, 2021 and 2020.

Non-marketableavailable-for-sale securities are stated at cost determined by the moving-average method.

For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to income.

074

YAMATO HOLDINGS CO., LTD.

YAMATO HOLDINGS CO., LTD.

075

Integrated Report 2021

Integrated Report 2021

FINANCIAL SECTION

Notes to Consolidated Financial Statements

h. Property, Plant and Equipment-Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment excluding leased assets of the Company and its domestic consolidated subsidiaries is computed substantially by the declining-balance method, while the straight-line method is applied to buildings acquired on or after April 1, 1998, and facilities attached to buildings and structures acquired on or after April 1, 2016. Depreciation of leased assets is computed by the straight-line method over the lease period with no residual value carried.

The depreciation of property, plant and equipment of foreign consolidated subsidiaries is computed by the straight-line method over the estimated useful lives of the assets. The range of useful lives is principally as follows:

Buildings and structures

7-60 years

Vehicles

2-  7 years

Machinery and equipment

2-20 years

Maintenance and repairs, including minor renewals and improvements, are charged to income as incurred.

i. Long-Lived Assets-The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use and eventual disposition of the asset or the net selling price at disposition.

j. Other Assets-Amortization of intangible assets is computed by the straight-line method.

Depreciation of leased assets is computed by the straight-line method over the lease period with no residual value carried.

k. Retirement and Pension Plan-The Company and consolidated subsidiaries mainly have a contributory trusted pension plan and an unfunded retirement benefit plan. In addition, a defined contribution retirement plan was introduced along with these defined benefit pension plans.

In calculating the retirement benefit obligations, the straight-line basis is used in determining the amount of the expected retirement benefit obligations attributed to service performed up to the end of the current fiscal year.

Past service costs are recognized in profit or loss in full in the fiscal year in which it arises. Actuarial gains and losses are amortized on a straight-line basis over a period within the average remaining service period of the eligible employees (mainly five years) on and after the fiscal year following the fiscal year in which it arises.

Actuarial gains and losses are recognized within equity on the consolidated balance sheet after adjusting for tax effects, and funded status is recognized as a liability or asset.

l. Asset Retirement Obligations-An asset retirement obligation is recorded for a legal obligation imposed either by law or contract that results from the acquisition, construction, development, and normal operation of a tangible fixed asset and is associated with the retirement of such tangible fixed asset.

The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset retirement and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made. Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to the timing or the amount of the original estimate of undis- counted cash flows are reflected as reconciliation to the carrying amount of the liability and the capitalized amount of the related asset retirement cost.

FINANCIAL SECTION

  1. Leases-For a lessee, all finance lease transactions are capitalized to recognize lease assets and lease obligations in the balance sheet.
    For a lessor, all finance leases that deem to transfer ownership of the leased property to the lessee are recognized as lease receivables, and all finance leases that deem not to transfer ownership of the leased property to the lessee are recognized as investments in leases.
  2. IncomeTaxes-The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences.
  3. Foreign CurrencyTransactions-All short and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date.
  4. Foreign Currency Financial Statements-The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is trans- lated at the historical rate. Differences arising from such translation are shown as “Foreign currency translation adjust- ments” under accumulated other comprehensive income in a separate component of equity.
    Revenue and expense accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rates as of the balance sheet date.
  5. Per Share Information-Basic earnings per share is computed by dividing profit attributable to common shareholders

by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits. Diluted earnings per share reflects the potential dilution that could occur if securities were exercised or converted into

common stock. Diluted earnings per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants.

For the years ended March 31, 2021 and 2020, diluted earnings per share is not disclosed because the Company had no dilutive securities.

Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicable to the respective fiscal years, including dividends to be paid after the end of the year.

r. Accounting Changes and Error Corrections-Under ASBJ Statement No. 24, “Accounting Standard for Accounting Changes and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting Standard for Accounting Changes and Error Corrections,” accounting treatments are required as follows:

  1. Changes in Accounting Policies-When a new accounting policy is applied following revision of an accounting stan- dard, the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provi- sions, in which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation-When

the presentation of financial statements is changed, prior-period financial statements are reclassified in accordance with the new presentation. (3) Changes in Accounting Estimates-A change in an accounting estimate is accounted for in the period of the change if the change affects that period only, and is accounted for prospectively if the change affects both the period of the change and future periods. (4) Corrections of Prior-PeriodErrors-When an error in prior-period financial statements is discovered, those statements are restated.

s. New Performance-Based Share Remuneration Plan “Board Benefit Trust (BBT)”- In accordance with the resolution at the 155th General Shareholders’ Meeting on June 23, 2020, the Company introduced a new performance-basedshare remuneration plan “Board Benefit Trust (BBT)” for the directors (except for outside directors) and executive officers who do not concurrently serve as directors of the Company (“Officers”). This plan purports to further enhance the connection between Officers’ remuneration and performance and share value of the Company, and raise their motivation to make contributions to increase the Company’s long-termperformance and corporate value by sharing not only the benefits of a rise in share prices but also the risk of a decline in share prices with shareholders.

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YAMATO HOLDINGS CO., LTD.

YAMATO HOLDINGS CO., LTD.

077

Integrated Report 2021

Integrated Report 2021

FINANCIAL SECTION

Notes to Consolidated Financial Statements

The Plan is a performance-based share remuneration plan in which the trust acquires the Company’s shares using money contributed by the Company as the source of funds, and Officers are provided with the Company’s shares and cash equivalent to the market value of the Company’s shares (“Shares of the Company”) through the trust in accordance with “Regulation for Benefit of Shares to Officers” established by the Company. As a general rule, Officers shall be entitled to receive Shares of the Company at the time of retirement.

The Company applies the same accounting method as stipulated in the ASBJ PITF No.30, “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employee etc. through Trusts.”

The book value (excluding incidental costs) of the Company’s shares now held by the trust bank is accounted for as treasury stock in the equity section of the Company’s consolidated balance sheet. At March 31, 2021, the book value and number of treasury stock held by the trust bank are ¥1,376 million ($12,433 thousand) and 483,700 shares, respectively.

t. New Accounting Pronouncements

(1) Accounting standards for revenue recognition

In March 2020, the ASBJ issued ASBJ Statement No. 29, “Accounting Standard for Revenue Recognition,” and ASBJ Guidance No. 30, “Implementation Guidance on Accounting Standard for Revenue Recognition”. An entity should recognize revenue by applying the following steps:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The accounting standard and guidance will be applied from the beginning of the fiscal year that begins on or after April 1, 2021.

In applying Accounting standards for revenue recognition, retained earnings will be adjusted for cumulative effects of accounting policies then. The effect of this application on the consolidated financial statements is immaterial.

(2)Accounting standards and guidance for fair value measurement

In July 2019, the ASBJ issued ASBJ Statement No. 30, “Accounting Standard for Fair Value Measurement”, ASBJ Statement No. 9, “Accounting Standard for Measurement of Inventories”, ASBJ Statement No. 10, “Accounting Standard for Financial Instruments”, ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement”, ASBJ Guidance No. 19, “Implementation Guidance on Disclosures about Fair Value of Financial Instruments.”

ASBJ tried ensuring consistency between Japanese accounting standards and international accounting standards mainly for guidance and disclosures on fair value of financial instruments and issued “Accounting Standard for Fair Value Measurement”, etc. based on the fact that International Accounting Standards Board and Financial Accounting Standards Board had already issued detailed guidance on fair value measurement, which are almost identical to each other. As the basic policy in developing accounting standards for fair value measurement, ASBJ incorporated basically all of the matters defined in IFRS 13 Fair Value Measurement from a standpoint of increasing comparability of financial statements among domestic and foreign companies by using a unified measurement method. Furthermore, ASBJ defined alternative accounting treatment to the individual matters without impairing comparability of financial statements considering accounting practices, etc. common in Japan.

The accounting standards and guidance will be applied from the beginning of fiscal year that begins on or after April 1, 2021.

The Company is now in the process of measuring the effect of applying the accounting standard and guidance.

FINANCIAL SECTION

3. SIGNIFICANT ACCOUNTING ESTIMATE

Impairment of Long-Lived Assets

Amount recorded in the consolidated financial statements for the current fiscal year based on accounting estimates that may have a material impact on the consolidated financial statements for the following fiscal year are as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2021

Property, plant and equipment

¥406,313

$3,670,063

Intangible assets

29,555

266,959

In cases where there are indications that an asset may be impaired, an impairment test is performed based on the future cash flows generated by the asset. The cash-generating unit, used to determine whether it is necessary for an asset to recognize impairment loss, is the smallest unit in an asset group generating cash inflows generally independent of cash inflows from other assets or asset groups. Because the delivery segment holds most of the above property, plant and equipment and intangible assets, the undiscounted future cash flows used in determining recognition of impairment losses on those assets of the business are based on future management plans that include, as important assumptions, the unit price and the transaction volume of TA-Q-BIN. These assumptions may have a material impact on the consolidated financial statements for the following fiscal year and thereafter if it becomes necessary for them to be reconsidered due to uncertain economic conditions and the operating conditions of the Group.

4. INSTALLMENT RECEIVABLES

Sales recorded on the installment basis were 0.3% of operating revenues in both 2021 and 2020.

Annual maturities of installment receivables at March 31, 2021, and related amortization of deferred profit

on install-

ment sales are as follows:

Millions of Yen

Thousands of U.S. Dollars

Deferred Profit on

Deferred Profit on

Year Ending March 31

Receivables

Installment Sales

Receivables

Installment Sales

2022

¥21,358

¥1,796

$192,922

$16,221

2023

10,675

1,249

96,423

11,277

2024

6,258

761

56,523

6,878

2025

3,367

409

30,412

3,695

2026

1,690

213

15,264

1,922

2027 and thereafter

2,295

353

20,735

3,192

Total

¥45,643

¥4,781

$412,279

$43,185

5. INVENTORIES

Inventories at March 31, 2021 and 2020, consisted of the following:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Merchandise

¥   392

¥   552

$  3,541

Work in process

118

166

1,063

Raw materials and supplies

1,771

3,498

15,996

Total

¥2,281

¥4,216

$20,600

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YAMATO HOLDINGS CO., LTD.

YAMATO HOLDINGS CO., LTD.

079

Integrated Report 2021

Integrated Report 2021

FINANCIAL SECTION

Notes to Consolidated Financial Statements

6. MARKETABLE AND INVESTMENT SECURITIES

Marketable and investment securities as of March 31, 2021 and 2020, consisted of the following:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Non-current:

Marketable equity securities

¥35,833

¥26,466

$323,662

Non-marketable equity securities

931

935

8,408

Other

3,239

1,804

29,260

Total

¥40,003

¥29,205

$361,330

Information regarding each category of the securities classified as available-for-sale at March 31, 2021 and 2020, is as follows:

Millions of Yen

2021

Cost

Unrealized Gains

Unrealized Losses

Fair Value

Securities classified as:

Available-for-sale: Equity securities

¥14,842

¥21,635

¥644

¥35,833

Millions of Yen

2020

Cost

Unrealized Gains

Unrealized Losses

Fair Value

Securities classified as:

Available-for-sale: Equity securities

¥14,507

¥12,797

¥838

¥26,466

Thousands of U.S. Dollars

2021

Cost

Unrealized Gains

Unrealized Losses

Fair Value

Securities classified as:

Available-for-sale: Equity securities

$134,066

$195,416

$5,820

$323,662

Information for available-for-sale securities, which were sold during the years ended March 31, 2021 and 2020, is as follows:

Millions of Yen

March 31, 2021

Proceeds

Realized Gains

Realized Losses

Available-for-sale:

Equity securities

¥  1

¥-

¥-

Other

15

2

Total

¥16

¥  2

¥-

Millions of Yen

March 31, 2020

Proceeds

Realized Gains

Realized Losses

Available-for-sale: Equity securities

¥1,978

¥1,300

¥-

Thousands of U.S. Dollars

March 31, 2021

Proceeds

Realized Gains

Realized Losses

Available-for-sale:

Equity securities

$    5

$ -

$-

Other

135

15

Total

$140

$15

$-

Loss on valuation of available-for-sale equity securities for the year ended March 31, 2021 and 2020, were ¥355 million ($3,205 thousand) and ¥140 million, respectively.

FINANCIAL SECTION

7. LONG-LIVED ASSETS

The Group reviewed its long-lived assets for impairment as of the years ended March 31, 2021 and 2020. As a result, the Group recognized an impairment loss of ¥877 million ($7,920 thousand) as other expense for asset groups of idle assets of Yamato Transport Co., Ltd. and 10 other asset groups for the year ended March 31, 2021, and ¥991 million as other expense for the asset groups of the Trade Logistics Service of Yamato Global Logistics Japan Co., Ltd. and 16 other asset groups for the year ended March 31, 2020, due to continuous operating losses of those units or significant declines in market prices. The carrying amounts of the relevant asset groups were written down to their recoverable amounts. In the case where the net selling prices were used as recoverable amounts, idle assets were evaluated at zero, and the relevant asset groups other than idle assets were evaluated mainly based on Real Estate Appraisal Standards, assessed value of fixed assets, and posted land prices. In the case where the recoverable amounts were measured at its value in use, the discount rates used for computation of present value of future cash flows for years ended March 31, 2021 and 2020, were 5.96% and 4.32%, respectively.

8. BANK LOANS AND LONG-TERM DEBT

Short-term bank loans at March 31, 2021 and 2020, consisted of notes to banks and bank overdrafts. The weighted-average interest rates applicable to the bank loans as of March 31, 2021 and 2020, were approximately 0.073% and 0.092%, respectively.

Long-term debt at March 31, 2021 and 2020, consisted of the following:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

0.160% to 0.299% loans from banks due 2021 to 2022

¥ 14,000

$ 126,456

0.120% to 0.299% loans from banks due 2020 to 2022

¥ 19,500

Lease obligations

31,154

25,339

281,400

Unsecured 0.090% bonds due in March 2021

10,000

  Total

45,154

54,839

407,856

Less current portion

(19,055)

(19,079)

(172,115)

Total

¥ 26,099

¥ 35,760

$ 235,741

Annual maturities of long-term debt at March 31, 2021, are as follows:

Thousands of

Year Ending March 31

Millions of Yen

U.S. Dollars

2022

¥19,055

$172,115

2023

4,534

40,951

2024

3,785

34,189

2025

2,505

22,623

2026

1,504

13,587

2027 and thereafter

13,771

124,391

Total

¥45,154

$407,856

080

YAMATO HOLDINGS CO., LTD.

YAMATO HOLDINGS CO., LTD.

081

Integrated Report 2021

Integrated Report 2021

FINANCIAL SECTION

Notes to Consolidated Financial Statements

9. RETIREMENT AND PENSION PLANS

The Group has defined benefit pension plans and defined contribution retirement plans for employees.

The defined benefit pension plans provide, under most circumstances, that employees terminating their employment are entitled to retirement benefits determined based on the rate of pay at the time of termination, years of service, and certain other factors. Such retirement benefits are made in the form of a lump-sum severance payment from the Company or from the consolidated subsidiaries and annuity payments from a trustee. Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages exceeding the standard retirement age.

(1) Defined Benefit Pension Plans

The changes in defined benefit obligation for the years ended March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Balance at beginning of year

¥177,835

¥172,209

$1,606,318

Service cost

14,016

13,146

126,596

Interest cost

177

171

1,599

  Actuarial loss arising during the year

1,129

519

10,195

Retirement benefits paid

(8,967)

(8,210)

(80,992)

  Decrease due to change in scope of consolidation

(331)

(2,992)

Balance at end of year

¥183,859

¥177,835

$1,660,724

The changes in plan assets for the years ended March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Balance at beginning of year

¥98,728

¥97,863

$   891,774

  Expected return on plan assets

984

979

8,882

  Actuarial gain (loss) arising during the year

10,564

(2,379)

95,420

  Contributions from the employer

4,540

4,448

41,012

  Retirement benefits paid

(2,244)

(2,183)

(20,268)

  Decrease due to change in scope of consolidation

(391)

(3,536)

Balance at end of year

¥112,181

¥98,728

$1,013,284

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Defined benefit

obligation of

funded plan

¥   66,676

¥  65,656

$    602,257

Plan assets

(112,181)

(98,728)

(1,013,284)

(45,505)

(33,072)

(411,027)

Defined benefit

obligation of

unfunded plan

117,183

112,179

1,058,467

Net liability arising from defined benefit obligation

¥   71,678

¥  79,107

$    647,440

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Liability for employees’ retirement benefits

¥71,835

¥79,231

$648,855

Asset for employees’ retirement benefits

(157)

(124)

(1,415)

Net liability arising from defined benefit obligation

¥71,678

¥79,107

$647,440

FINANCIAL SECTION

The amount of the liability and asset for employees’ retirement benefits that are offset individually by the Company and subsidiaries are combined.

The components of net periodic benefit costs for the years ended March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Service cost

¥14,016

¥13,146

$126,596

Interest cost

177

171

1,599

Expected return on plan assets

(984)

(979)

(8,882)

Recognized actuarial loss

3,897

2,029

35,198

Others

125

(6)

1,134

Net periodic benefit costs

¥17,231

¥14,361

$155,645

Amounts recognized in other comprehensive income (before income tax effect adjustments) in respect of defined retirement benefit plans for the years ended March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Actuarial gain (loss)

¥13,337

¥(869)

$120,468

Total

¥13,337

¥(869)

$120,468

Amounts recognized in accumulated other comprehensive income (before income tax effect adjustments) in respect of defined retirement benefit plans as of March 31, 2021 and 2020, were as follows:

Thousands of

Millions of Yen

U.S. Dollars

2021

2020

2021

Unrecognized actuarial gain (loss)

¥8,108

¥(5,232)

$73,240

Total

¥8,108

¥(5,232)

$73,240

Plan assets as of March 31, 2021 and 2020, consisted of the following:

2021

2020

General accounts

30%

33%

Debt investments

23

24

Equity investments

24

18

Others

23

25

Total

100%

100%

Assumptions used for the years ended March 31, 2021 and 2020, were set forth as follows:

2021

2020

Discount rate

0.1%

0.1%

Expected rate of return on plan assets

1.0%

1.0%

The expected rate of return on plan assets is determined on the basis of the distribution of plan assets, past performance of respective assets that make up investments of plan assets, and market trends.

(2) Defined Contribution Retirement Plans

The amounts contributed to the defined contribution retirement plans of the Group for the years ended March 31, 2021 and 2020, were ¥3,060 million ($27,642 thousand) and ¥2,764 million, respectively.

082

YAMATO HOLDINGS CO., LTD.

YAMATO HOLDINGS CO., LTD.

083

Integrated Report 2021

Integrated Report 2021

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Disclaimer

Yamato Holdings Co. Ltd. published this content on 15 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2022 06:49:01 UTC.

Publicnow 2022

All news about YAMATO HOLDINGS CO LTD

Sales 2022 1 786 B
15 136 M
15 136 M
Net income 2022 50 996 M
432 M
432 M
Net cash 2022 160 B
1 360 M
1 360 M
P/E ratio 2022 15,9x
Yield 2022 2,09%
Capitalization 818 B
6 936 M
6 936 M
EV / Sales 2022 0,37x
EV / Sales 2023 0,36x
Nbr of Employees 223 191
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Yamato Holdings Co Ltd Technical Analysis Chart | MarketScreener

Technical analysis trends YAMATO HOLDINGS CO LTD

Short Term Mid-Term Long Term
Trends Bearish Bearish Bearish



Income Statement Evolution

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 12
Last Close Price
2 206,00 JPY
Average target price
2 869,00 JPY
Spread / Average Target 30,1%




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