[Company analysis] Yamato Holdings Co., Ltd. (ヤマトホールディングス)

「Yamato Holdings Co., Ltd. (ヤマトホールディングス)」is a holding company and it owns「Yamato Transport Co., Ltd.」which has the largest share of the domestic courier market in Japan.「Yamato Transport」is known as the first company in Japan to establish a home delivery service. The number of consolidated employees is approximately 196,582.

 

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Yamato Holdings Co., Ltd.
Company name (Japanese)	ヤマトホールディングス
Date of establishment	Saturday, November 29, 1919
Headquarters location	〒104‐8125 東京都中央区銀座二丁目16番10号
Capital	127,234
Consolidated sales	1,625,315
Consolidated operating profit	58,345
Consolidated total assets	1,123,659
Consolidated capital	573,388
Capital adequacy ratio	51.0%
Consolidated number of employees	196,582

 

 

 

2. Summary and Features

 
At present,「Yamato Transport」is the leading transportation company with the largest share of the domestic courier market in Japan. However, until 1976 when「Yamato Transport」started its home delivery business, they were not major Japanese transportation industry. Its founding was relatively early in 1919, and it was sometimes called the best in Japan for short-distance transportation before the Pacific War. However, after the end of the war, their business did not go well due to the changes in the logistics industry.

 

Mass production and mass consumption were commonplace in Japan at that time, and this was naturally required in the logistics industry. The short-distance transportation, which「Yamato Transport」had advantages, was based on transportation in city. According to the metropolitanization, the transportation cost was increased, because the roads became more congested. Besides their freight is mostly small items, so  they can not secure regular amount every month. "Long-distance bulk transportation with bulk cargo" was the mainstream of Japanese logistics industry, but the「Yamato Transport」could not handle this at all.

 

However, at this time,「Yamato Transport」focuses on the home delivery business. The driver takes charge of a small area, and "collectively" collects and delivers the goods. they Established the home delivery service as a business centered on the "city" area for the first time in Japan. On the day of the start of business, the number of freight was only 11 for home delivery services, but since then, the handling volume has rapidly increased. Now 「Yamato Transport」become the top class courier company in Japan.

 

The current「Yamato Transport」is struggling with a low profit margin. The reason is, they have introduced many in-house trucks for transportation between bases and have developed a nationwide distribution network. In the past, 「Yamato Transport」aimed to become a infrastructure company of the same level as「Japan Post Holdings Co., Ltd.(日本郵政)」. For this reason this company deployed their delivery network throughout Japan, and still they maintain it. Therefore, it is pointed out that「Yamato Transport」has a relatively heavy burden of maintaining the distribution network, which lowers the profit margin.

 

 

 

3. Major Business

 

■ Courier business

■ Business logistics business

■ Home Convenience Business

■ E-business

■ Financial business

■ Autoworks business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated operating revenue		1,466,852	1,538,813	1,625,315
Consolidated operating profit		34,885	35,685	58,345
Consolidated total assets		1,114,672	1,115,433	1,123,659
Consolidated net assets		545,559	557,586	573,388
Breakdown of sales	Courier business	1,151,028	1,201,745	1,297,222
	Business logistics business	108,643	121,939	147,437
	Home Conveninence business	49,163	48,900	33,404
	E-business	45,639	46,480	26,592
	Financial business	77,985	82,981	79,966
	Autoworks business	24,613	24,641	25,985
	Others	9,777	12,125	14,705