Japan Post Holdings Co., Ltd. · TSE:6178
Japan Post — H1 FY2024 Earnings Presentation
47 slides from Japan Post's earnings presentation, November 2024
Slide 1: Material For Large Meeting
UNOFFICIAL TRANSLATION Although the Company pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy. Material For Large Meeting November, 2024 JAPAN POST HOLDINGS Security
Slide 2: Contents
Contents Financial Highlights for the Six Months Ended September 30, 2024 Progress of “JP Vision2025+” Appendix 1
Slide 3: Financial Highlights for the Six Months Ended September 30, 2024
Financial Highlights for the Six Months Ended September 30, 2024 2
Slide 4: Financial Highlights: Summary of Consolidated Financial Results
Financial Highlights for the Six Months Ended September 30, 2024 (Summary of Consolidated Financial Results) Ordinary income was ¥5,511.9 billion, a decrease of ¥106.2 billion year-on-year. Net ordinary income was ¥463.3 billion, an increase of ¥128.1 billion year-on-year. Net income attributa
Slide 5: Forecasts for the Fiscal Year Ending March 31, 2025
Forecasts for the Fiscal Year Ending March 31, 2025 Forecasts for Japan Post Bank and Japan Post Insurance have been revised. No revisions have been made to consolidated forecast for Japan Post Holdings, based on a comprehensive consideration of factors such as the fact that it is unclear as of
Slide 6: Shareholder Return Policy
Shareholder Return Policy Pay an interim dividend of 25 yen per share for this fiscal year also. Together with the year-end dividend, we plan an annual dividend of 50 yen per share, and intend to maintain stable shareholder returns. The share repurchase of up to 350.0 billion yen that began in M
Slide 7: Progress of “JP Vision2025+”
Progress of “JP Vision2025+” 6
Slide 8: JP Vision 2025+ Progress on Principal Measures
JP Vision 2025+ Progress on Principal Measures We are making good progress, with consolidated net income attributable to Japan Post Holdings of 139.4 billion yen for the six months ended September 30, 2024, compared to the full-year forecast of 280.0 billion yen (percentage achievement: 49.8%).
Slide 9: JP Vision 2025+ Three pillars of our initiatives & Sustainability
JP Vision 2025+ Three pillars of our initiatives & Sustainability We are making steady progress on initiatives aimed at strengthening profitability in each business including growth fields, investing in human resources, and promoting DX, etc., to achieve the targets of the Medium-term Management P
Slide 10: Postal and Domestic Logistics: Postage Rates Revision
Strengthen Profitability Postal and Domestic Logistics Business ― Postage Rates Revision, Trend in operating income of postal services Revised postage rates in October 2024 to maintain stable postal services. The overall percentage increase due to the revision of postage rates is 26.3%. The ra
Slide 11: Postal and Domestic Logistics: Acquisition of Parcels through JP Rakuten Logistics
Strengthen Profitability Postal and Domestic Logistics Business ― Acquisition of Parcels through JP Rakuten Logistics Established JP Rakuten Logistics, Inc. in July 2021. We developed an efficient and convenient logistics DX platform and aim to open the platform for other businesses to use in the
Slide 12: Postal and Domestic Logistics: Collaboration with Yamato Group
Strengthen Profitability Postal and Domestic Logistics Business Collaboration with Yamato Group We concluded a basic agreement with Yamato Group to promote sustainable logistics services in June 2023 In booklet parcels (mail-bin), the Kuroneko DM-Bin service handled by Yamato Transport has been
Slide 13: Collaboration with Sagawa Express, Seino Group
Strengthen Profitability Postal and Domestic Logistics Business Collaboration with Sagawa Express, Seino Group In September 2021, we concluded a Basic Agreement on Collaboration with Sagawa Express. In addition to using the Japan Post delivery network to deliver packages received by Sagawa Express
Slide 14: Real Estate Business: Large-Scale Properties Already Completed
Strengthen Profitability Real Estate Business ― The Large-Scale Properties that Have Already Completed Development (construction) of the large-scale properties undertaken under JP Vision 2025 was completed by FY2023. Office tenant leasing has been completed for the Hiroshima JP Building (constru
Slide 15: Real Estate Business: Main Properties under Development
Strengthen Profitability Real Estate Business - Main Properties under Development Major properties under development (construction started) The Landmark Nagoya Sakae (non-Group-owned real estate) Shirokane 1-chome West Central Area First-Class Urban Redevelopment Project Location Naka-ku, Nagoya-shi
Slide 16: Post Office Business: Enhancing Profitability, Value and Service Quality
Strengthen Profitability Post Office Business ― Enhancing Profitability, the Value and Appeal of Post Offices, and Service Quality By enhancing profitability, the value and appeal of post offices, and service quality, we will build a system that allows the post office business to grow into a busin
Slide 17: Improve EX by Investing in Human Resources
Improve EX by Investing in Human Resources We will support autonomous career formation to increase employee pride and fulfillment based on the Group Human Resources Policy established in 2023. In FY2024, we are expanding internal open recruitment within the Group. We have improved employee base
Slide 18: Sustainability Others
Sustainability Others We revised the executive remuneration system to further enhance consciousness and contributions towards steadily achieving the Company’s performance targets and enhancing medium-to-long term corporate value. Under JP Vision 2025, we plan to reduce the workforce by an amount
Slide 19: DX Promotion: Initiatives to Improve Customer Experience Value
DX Promotion ― Initiatives to Improve Customer Experience Value Offer Group-wide value to customers through the Post Office App, etc., to improve customer experience value. Launched the post office point service “Yu-Yu Point” in November 2024. Post Office App Point Service The Post Office App
Slide 20: Appendix
Appendix Contents Financial Highlights for the Six Months Ended September 30, 2024 20 Our History 26 Outline of Japan Post Group 27 Capital Allocation and Investments 28 JP Vision 2025+ 29 Strengthen profitability Postal and Domestic Logistics Business 31 Strengthen profitability Real Estate Busines
Slide 21: Summary of Financial Results (Principal Subsidiaries)
Financial Highlights for the Six Months Ended September 30, 2024 (Summary of Financial Results(the Principal Subsidiaries)) Net income (loss) was ¥(68.3) billion for Japan Post Co., ¥222.8 billion for Japan Post Bank, and ¥62.8 billion for Japan Post Insurance. Revenue increased but income decre
Slide 22: Analysis of Year-on-Year Change in Net Income
Financial Highlights for the Six Months Ended September 30, 2024 (Analysis of Year-on-Year Change in Net Income (Consolidated)) (Billions of yen) Net ordinary income 128.1 Other Extraordinary gains net ordinary and losses income Income taxes, etc. 33.2 79.2 Net ordinary income from life insurance bu
Slide 23: Trends in Net Ordinary Income (Loss)
Financial Highlights for the Six Months Ended September 30, 2024 (Trends in Net Ordinary Income (Loss)) (Billions of yen) 600.0 547.6 500.0 463.3 400.0 360.6 325.6 335.2 321.4 294.5 300.0 253.8 220.1 183.8 200.0 172.0 166.8 162.7 99.3 100.0 34.8 34.7 15.5 34.5 (22.9) 0.0 (65.1) (100.0) 2020 2021 202
Slide 24: Trends in Net Income (Loss)
Financial Highlights for the Six Months Ended September 30, 2024 (Trends in Net Income (Loss)) (Billions of yen) 300.0 265.1 250.0 235.3 222.8 205.9 200.0 178.9 182.1 158.6 150.0 139.4 124.2 120.2 93.6 100.0 80.5 62.8 48.2 50.4 50.0 26.3 0.0 6.4 (6.5) (21.0) (50.0) (68.3) (100.0) 2020 2021 2022 2023
Slide 25: Supplementary Information by Segment
Financial Highlights for the Six Months Ended September 30, 2024 Supplementary Information by Segment Billions of Yen For the six months ended For the six months Year-on-year change Sept. 30, 2023 ended Sept. 30, 2024 Operating income 941.5 939.2 (2.3) Postal and Domestic Logistics Net operating inc
Slide 26: Supplementary Information by Segment: Achievement of Forecasts
Financial Highlights for the Six Months Ended September 30, 2024 (Supplementary Information by Segment) Percentage achievement of full-year results forecasts (by segment) (Billions of yen) Postal and domestic Post office business International logistics Real estate business logistics business segmen
Slide 27: Our History
Our History Modern Postal Service was established in 1871. The 150th Anniversary of the foundation of the Japan Post Group was in 2021. The Japan Post Group was privatized and established in 2007. We were listed on the First Section (currently Prime Market) of the Tokyo Stock Exchange in 2015*.
Slide 28: Outline of Japan Post Group
Outline of Japan Post Group We are providing integrated services within the Group, such as Postal and Domestics Logistics Business, Banking Business and Life Insurance Business. Policy to dispose of shares so that the Company’s equity interests in the two financial subsidiaries will be 50% or le
Slide 29: Capital Allocation and Investments
Capital Allocation and Investments Partial sale of Japan Post Bank shares in March 2023, securing proceeds of ¥1.2 trillion. Plan to use the proceeds from the second sale of Japan Post Bank shares and the debts, etc. for shareholder returns and growth investments. Use of proceeds from the sales
Slide 30: Overview of JP Vision 2025+: Major Targets
Plus Overview of JP Vision 2025+ : Major Targets ROE decreased in FY2023, partly due to the sale of Japan Post Bank shares and sluggish performance in the postal and logistics segments. Nevertheless, we aim to exceed our cost of equity of about 5% as soon as possible, first striving for an ROE of
Slide 31: JP Vision 2025+ Strengthen Profitability In Each Segment
Plus JP Vision 2025+ Strengthen Profitability In Each Segment Taking into account issues and growth opportunities for each segment, we fundamentally review the details of initiatives to strengthen profitability. We will actively inject resources particularly to the postal and domestic logistics bu
Slide 32: Trends in Volume, Unit Price, and Income of Domestic Logistics
Strengthen Profitability Postal and Domestic Logistics Business ― Trends in Volume, Unit Price, and Income of Domestic Logistics Business The number of Yu-Pack and Yu-Packet parcels in FY2023 increased year on year (up 3.0%) due to steady progress in collaboration with companies outside the Group.
Slide 33: More Convenient Dispatch and Receipt of Parcel Products
Strengthen Profitability Postal and Domestic Logistics Business ― More Convenient Dispatch and Receipt of Parcel Products We are engaged in enhancing the convenience of dispatch and receipt to ensure our parcel products are chosen by customers. In September 2024, we launched the Posu-Measure app
Slide 34: Reinforcing Transportation and Delivery Network, Improving Productivity
Strengthen Profitability Postal and Domestic Logistics Business ― Reinforcing Transportation and Delivery Network, and Improving Productivity In addition to reviewing post office delivery areas and routes based on data acquired using telematics, we are promoting measures to improve productivity, s
Slide 35: Real Estate Business: Trends in Operating Income
Strengthen Profitability Real Estate Business ― Trends in Operating Income and Net Operating Income In light of major changes in the business environment, we will steadily continue promoting the development of Group- owned real estate and the acquisition of non-Group-owned real estate, etc. to dev
Slide 36: Main Properties Earmarked for Potential Development
Strengthen Profitability Real Estate Business Main Properties Earmarked for Potential Development Succeeded Site area Succeeded Site area Name assets Location ( ) Current status Name assets Location ( ) Current status Nationwide Tokyo 23 Wards Former Hokkaido Training Institute ✔ Sapporo-shi 14,900
Slide 37: Real Estate Business: Main real estate in operation
Strengthen Profitability Real Estate Business Main real estate in operation JP Tower (KITTE) JP Tower Nagoya(KITTE NAGOYA) Hiroshima JP Building Azabudai Hills Mori JP Tower JP Tower Osaka (KITTE OSAKA) L o c a t i o n Chiyoda-ku L o c a t i o n Nagoya-shi Location Hiroshima-shi L o c a t i o n Mina
Slide 38: Real Estate Business – Properties in Operation
Strengthen Profitability Real Estate Business – Properties in Operation Construction Succeeded Total floor area Classification Property name Location Site area (m2) (m2) Asset type Project type completion assets (year/month) JP Tower (KITTE) ✔ Chiyoda-ku 11,600 212,000 Offices and commercial facilit
Slide 39: Real Estate Business – Properties in Operation
Strengthen Profitability Real Estate Business – Properties in Operation Total floor Construction Succeeded Site area Classification Property name Location area Asset type Project type completion assets (m2) (m2) (year/month) Urayasu-shi Grace Bear Urayasu 2,820 5,280 Residences Solely acquired prope
Slide 40: Post Office Business: Trends in Operating Income
Strengthen Profitability Post Office Business – Trends in Operating Income and Net Operating Income, etc. Trends in operating income and net operating income of post office business* Overview of the subsidy program (Billions of yen) (Billions of yen) Of the costs required to maintain the post offi
Slide 41: Universal Service Providing at Post Offices
Universal Service Providing at Post Offices Universal service providing at post offices Standards for establishment of post offices (summary) Postal services, simple savings, remittance, and settlement of debts In principle, one or more post offices must be established in each and credits, and lif
Slide 42: International Logistics Business: Trends in Net Operating Income
Strengthen Profitability International Logistics Business ― Trends in Net Operating Income (EBIT) and Operating Profit Margin Sold unprofitable global express business in August 2021 and focused on sustainably expanding the scale of income and improving the profitability of forwarding and logistic
Slide 43: Aflac Inc. to Become an Equity-Method Affiliate
Aflac Inc. to Become an Equity-Method Affiliate In March 2024, Aflac Incorporated will become an equity-method affiliate of Japan Post Holdings. The equity in earnings of affiliates is expected to be 48 billions of yen per year, assuming current levels of income and other factors*. Equity meth
Slide 44: Sustainability ― Initiatives to Reduce GHG Emissions
Sustainability ― Initiatives to Reduce GHG Emissions Under the Medium-term Management Plan “JP Vision 2025+”, we target a 46% reduction in greenhouse gas (GHG) emissions by FY2030 (compared to FY2019), aiming to achieve carbon neutrality by 2050. In FY2023, we achieved a reduction in GHG emissions
Slide 45: Investment for Growth
Investment for Growth We will formulate a detailed investment plan by adding “investment for increased capacity in our logistics business” and “investment in human resources” to investment for growth of the Group. (When investing in new businesses, etc., we conduct disciplined investments based on
Slide 46: Transition of Significant Management Indicators (five years)
[Reference] Transition of Significant Management Indicators (for five years) FY2019 FY2020 FY2021 FY2022 FY2023 Transition of Significant Management Indicators (Consolidated) Total Income Millions of Yen 11,950,185 11,720,403 11,264,774 11,138,570 11,982,152 Income before income taxes Millions of Ye
Slide 47: Contact and Disclaimer
For inquiries about this document, please contact: IR Office, Corporate Planning Department, Japan Post Holdings Co., Ltd. Email: irshitsu.ii@jp-holdings.jp <Disclaimer> This document contains forward-looking statements, including forecasts and targets, for the Japan Post Group and its group compani
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