Japan Post Holdings Co., Ltd. · TSE:6178

Japan Post — FY2015 Earnings Presentation

41 slides from Japan Post's earnings presentation, May 20, 2016

  1. Slide 1: For the Fiscal Year Ended March 31, 2016 Results Briefing

    For the Fiscal Year Ended March 31, 2016 Results Briefing May 20, 2016

  2. Slide 2: Contents

    Contents Financial Results Overview for the Fiscal Year Ended March 31, 2016 Financial Results Forecast for the Fiscal Year Ending March 31, 2017 Group Strategy for Achieving Growth and Development APPENDIX Copyright © 2016 JAPAN POST GROUP. All Rights Reserved. 1

  3. Slide 3: Financial Results Overview for the Fiscal Year Ended March 31, 2016

    1 Financial Results Overview for the Fiscal Year Ended March 31, 2016 Copyright © 2016 JAPAN POST GROUP. All Rights Reserved. 2

  4. Slide 4: Summary of the Fiscal Year Ended March 31, 2016 Results

    Summary of the Fiscal Year Ended March 31, 2016 Results  Consolidated ordinary income amounted to ¥14,257.5bn, remaining at the same level as the previous fiscal year.  Under the historically low interest rate environment, consolidated net income decreased by ¥56.7bn year-on-year to ¥425.9bn.  Th

  5. Slide 5: 1-1 Financial Highlights

    1-1 Financial Highlights  Financial Results Overview for the fiscal year ended March 31, 2016 Japan Post Holdings Japan Post Co. Japan Post Insurance Japan Post Bank (Consolidated) (Consolidated) (Consolidated) (Shareholding ratio) 89.0 (Shareholding ratio) 89.0 Ordinary income 14,257.5 3,648.4 1,9

  6. Slide 6: 1-2 Profit for the Fiscal Year Ended March 31, 2016 by Segment

    1-2 Profit for the Fiscal Year Ended March 31, 2016 by Segment  Net Ordinary Income by Segment Notes: 1. “Other business” includes the hotel business, the hospital business and dividend income from subsidiaries and affiliates recorded by the Company. 2. “Adjustments” includes items such as eliminat

  7. Slide 7: 1-3-1 Financial Results of Principal Subsidiaries: Japan Post Co. (Consolidated)

    1-3-1 Financial Results of Principal Subsidiaries Japan Post Co. (Consolidated)  Japan Post Co. (Consolidated) Postal and *2 Japan Post Co. International Item Year-on- domestic Year-on- Year-on- Post office Year-on- (Consolidated) logistics year logistics year year business year business change bus

  8. Slide 8: 1-3-2 Postal and Domestic Logistics Business

    1-3-2 Financial Results of Principal Subsidiaries Japan Post Co. (Consolidated) Postal and Domestic Logistics Business   Total volume of items handled increased by 0.2% year-on-year for the first time in 14 years (mm items) since the fiscal year ended Mar.31, 2002 (1.3 ) +0.2% 22,324 22,036 22,082

  9. Slide 9: 1-3-3 International Logistics Business

    1-3-3 Financial Results of Principal Subsidiaries Japan Post Co. (Consolidated) International Logistics Business  (170) 6,291 6,462 2.6% (57) 6,092 6,149 0.9% (113) 199 312 36.2% Acquired by Acquired by Japan Post Group Japan Post Group Jul. 2013 – Jul. 2014 – Jul. 2015 – Jul. 2013 – Jul. 2014 – Ju

  10. Slide 10: 1-3-4 Trends in Earnings Mix of Post Office Business

    1-3-4 Financial Results of Principal Subsidiaries Japan Post Co. (Consolidated) Trends in Earnings Mix of Post Office Business ¥bn 1,500.0 1,353.0 1,260.5 1,253.4 1,253.3 1,281.9 +71.1 (24.0) (7.1) (0.0) +28.5 Other operating 187.9 74.0 89.6 102.7 141.2 income +46.7 +27.7 +15.6 +13.0 +38.5 Postal 18

  11. Slide 11: 1-3-5 Post Office Business

    1-3-5 Financial Results of Principal Subsidiaries Japan Post Co. (Consolidated) Post Office Business   For the year For the year Year-on- ended ended year Mar.31, 2016 Mar.31, 2015 change 1,353.0 1,281.9 +71.1 1,317.4 1,261.1 +56.2 927.5 902.8 +24.6 389.9 358.3 +31.5 35.6 20.7 +14.8 Copyright © 20

  12. Slide 12: 1-4-1 Japan Post Bank

    1-4-1 Financial Results of Principal Subsidiaries Japan Post Bank  Financial Results for the Fiscal Year  Major Business Index Ended March 31, 2016 (¥bn) (¥bn) For the year For the year For the year For the year Year-on-year Year-on- ended ended ended ended change year change Mar.31, 2016 Mar.31,

  13. Slide 13: 1-4-2 Japan Post Bank Business Results

    1-4-2 Financial Results of Principal Subsidiaries Japan Post Bank Business Results  Deposit Balance  Net Fees and Commissions (¥tn) (¥bn) 180 176.6 177.7 177.8 100.0 92.6 175.6 176.0 89.2 91.1 170 80.0 160 60.0 150 0 0.0 40.0 Mar.31, 2012 Mar.31, 2013 Mar.31, 2014 Mar.31, 2015 Mar.31, 2016 2014 20

  14. Slide 14: 1-4-3 Japan Post Bank Investment Assets

    1-4-3 Financial Results of Principal Subsidiaries Japan Post Bank Investment Assets  Investment Portfolio (¥bn) As of Composition As of Composition Type ratio (%) ratio (%) Mar.31, 2016 Mar.31, 2015 Due from banks, short-term Loans 2,542.0 1.2 2,783.9 1.3 investments, etc. ¥54,696.6bn 26.6% Securit

  15. Slide 15: 1-5-1 Japan Post Insurance (Consolidated)

    1-5-1 Financial Results of Principal Subsidiaries Japan Post Insurance (Consolidated)  Financial Results for the Fiscal Year Ended  Major Business Index March 31, 2016 (¥bn) (¥bn, number of policies in thousands, ) For the year For the year For the year For the year Year-on-year Year-on-year ended

  16. Slide 16: 1-5-2 Status of Insurance Policies

    1-5-2 Financial Results of Principal Subsidiaries Japan Post Insurance (Consolidated) Status of Insurance Policies  New Policies (Individual Insurance) Policies in Force (Individual Insurance) (Policies in thousands) (Policies in thousands) New Category Postal Life Insurance Category 2,500 40,000 3

  17. Slide 17: 1-5-3 Japan Post Insurance Investment Assets

    1-5-3 Financial Results of Principal Subsidiaries Japan Post Insurance (Consolidated) Investment Assets  (¥bn) As of Composition As of Composition Type ratio (%) ratio (%) Mar.31, 2016 Mar.31, 2015 Others Loans 8,978.4 11.0 9,977.3 11.7 ¥7,312.2bn Money held in 9.0% trust Securities 63,609.9 78.0 6

  18. Slide 18: 1-6 Dividends for the fiscal year ended March 31, 2016

    1-6 Dividends for the fiscal year ended March 31, 2016  (reference) For the fiscal year For the fiscal year Initial dividends ended Mar.31, 2016 ended Mar.31, 2016 forecast Dividend per share Dividend payout ratio (announced in November 2015) ¥ 25 25.7 ¥ 23 Note: In accordance with Article 11 of th

  19. Slide 19: Financial Results Forecast for the Fiscal Year Ending March 31, 2017

    2 Financial Results Forecast for the Fiscal Year Ending March 31, 2017 Copyright © 2016 JAPAN POST GROUP. All Rights Reserved. 18

  20. Slide 20: 2-1 Financial Results Forecast for the Fiscal Year Ending March 31, 2017

    2-1 Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (¥bn) Net ordinary income Change Net income Change Changes in business environment and their (for the year ended (for the year ended (Segment base) Mar.31, 2016) Mar.31, 2016) impacts on Japan Post Group Postal and domestic log

  21. Slide 21: 2-2 Dividends Forecast for the Fiscal Year Ending March 31, 2017

    2-2 Dividends Forecast for the Fiscal Year Ending March 31, 2017  Japan Post Holdings aims to provide stable returns to shareholders while maintaining required internal reserves and paying attention to capital efficiency. Accordingly, Japan Post Holdings intends to maintain a consolidated dividend

  22. Slide 22: Group Strategy for Achieving Growth and Development

    Group Strategy for Achieving Growth and Development Copyright © 2016 JAPAN POST GROUP. All Rights Reserved. 21

  23. Slide 23: 3-1 Growth Strategy

    3-1 Growth Strategy Illustrative Business Portfolio Illustrative Business Portfolio (Current) (Future) Japan Post Insurance Japan Post Insurance Growth Investment Pursue business alliance and M&As with Japan Post Bank proceeds from the sale of two financial subsidiaries, as well as borrowings Japan

  24. Slide 24: 3-2 Overview of Group Strategy (Medium-term Management Plan)

    3-2 Overview of Group Strategy (Medium-term Management Plan (Announced on April 1, 2015)) Growth and development of Business targets (Reference) Results for the year business for the year ending March 31, 2018 ended March 31, 2016  Yu-Pack items : Approx. 680mm  Yu-Pack items : 510mm  Revival of

  25. Slide 25: 3-3 Strategy Overview for FY Ending March 31, 2017 (by Business Segment)

    3-3 Strategy Overview for the Fiscal Year Ending March 31, 2017 (by Business Segment) Postal and domestic logistics business [Shift to a structure that can generate profits by improving earnings capability and productivity centered on the growing e-commerce market] Regaining profitability in the Yu-

  26. Slide 26: 3-4-1 Postal and Domestic Logistics Business: E-Commerce Market

    3-4-1 Strategy by Segment Postal and Domestic Logistics Business (1) Strategic Approach to the E-Commerce Market Strategic products for the e-commerce market [Reference] Trends of Japanese BtoC-EC market Product Delivery Tracking Size limit Charges (¥tn) Market size EC ratio (%) 15 5 Face-to-face Di

  27. Slide 27: 3-4-2 Measures to Improve Profit Structure

    3-4-2 Strategy by Segment Postal and Domestic Logistics Business (2) Measures to Improve Profit Structure Operating income Net operating income (loss) Personnel expenses to sales ratio (¥bn) Operating income (¥bn) Year-on-year change ratio (%) (%) 2,500.0 6.0 15.0 12.3 65.0 64.6 64.6 1,805.4 1,851.9

  28. Slide 28: 3-5 International Logistics Business

    3-5 Strategy by Segment International Logistics Business Development of Global Logistics Synergies between Japan Post Co. and Toll Acquisition of new customers by advancing into the trilateral logistics business through collaboration between Japan Post Co. and Toll Substantial corporate client base

  29. Slide 29: 3-6-1 Post Office Business: Securing Stable Income

    3-6-1 Strategy by Segment Post Office Business (1) Securing Stable Income from Japan Post Bank and Japan Post Insurance Trends in commissions from Japan Post Bank and Japan Post Insurance Approx. 22% share (¥bn) Approx. 20% share of of the number of saving deposits of the 1,000.0 individual insuranc

  30. Slide 30: 3-6-2 Expanding Businesses as a Total Lifestyle Support Group

    3-6-2 Strategy by Segment Post Office Business (2) Expanding Businesses as a Total Lifestyle Support Corporate Group Third-party financial product Real estate business agency service business Merchandising business Operating income (¥bn) Operating income (¥bn) Operating income (¥bn) Stable 30.3 inco

  31. Slide 31: 3-7-1 Banking Business: Impact of Negative Interest Rates

    3-7-1 Strategy by Segment Banking Business Impact of Negative Interest Rates  Condensed Balance Sheet As of Mar.31, 2016 Direct impact Cash and due from banks, Deposits ¥177.8tn call loans, and receivables under securities borrowing Policy-rate applied balance transactions Transfer deposits 20bp [1

  32. Slide 32: 3-7-2 Banking Business: ALM / Investment Strategy

    3-7-2 Strategy by Segment Banking Business ALM / Investment Strategy to Generate Stable Income and Excess Return  ALM / Investment Strategy to Generate Stable Income and Excess Return (management accounting basis, figures are rounded to the trillion) Portfolio Management Policy (¥tn) Base Portfolio

  33. Slide 33: 3-8-1 Life Insurance Business: Actions to Deal with Negative Interest Rates

    3-8-1 Strategy by Segment Life Insurance Business Actions to Deal with Negative Interest Rates  Actions to Deal with Negative Interest Rates  Taking appropriate actions from both assets and liabilities side to deal with environmental changes following the introduction of negative interest rate pol

  34. Slide 34: 3-8-2 Life Insurance Business: Reversal and Growth of Policies in Force

    3-8-2 Strategy by Segment Life Insurance Business Reversal and Growth of Policies in Force   Aim to reverse the decreasing trend of policies in force after the mid-term management plan’s final year (the fiscal year ending March 31, 2018) and enter into a growth phase by strengthening quality and q

  35. Slide 35: 3-9 Shareholder Return Policy

    3-9 Shareholder Return Policy (Targeting dividend payout ratio of 50% or more on a consolidated basis up to the end of the fiscal year ending March 31, 2018)  Attractive dividend payout ratio  Dividend per share Target ¥60.0 60% 50% or higher Results for the fiscal year Dividend ended March 31, 20

  36. Slide 36: APPENDIX

    APPENDIX 35

  37. Slide 37: Japan Post Holdings Performance

    Japan Post Holdings Performance For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2011 Mar. 31, 2012 Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 17,468.9 16,661.4 15,849.1 15,240.1 14,258.8 14,257.5 956.9 1,176.8 1,

  38. Slide 38: Japan Post Co. Performance

    Japan Post Co. Performance For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2011 Mar. 31, 2012 Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Operating income Postal service business income 1,809.8 1,774.4 1,767.7 1,7

  39. Slide 39: Japan Post Bank Performance

    Japan Post Bank Performance (¥bn) For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2011 Mar. 31, 2012 Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 1,718.9 1,670.0 1,624.3 1,568.7 1,634.7 1,452.0 1 1,686.4 1,677.3 1,

  40. Slide 40: Japan Post Insurance Performance

    Japan Post Insurance Performance For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2011 Mar. 31, 2012 Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 7,342.3 6,856.4 6,481.7 5,911.6 5,956.7 5,413.8 422.2 531.2 528.9 462

  41. Slide 41: For inquiries about this document, please contact: IR Office

    For inquiries about this document, please contact: Japan Post Holdings Co., Ltd. IR Office Email: irshitsu.ii@jp-holdings.jp <Disclaimer> This document contains forward-looking statements regarding the outlook and targets of the Japan Post Group and its group companies. These statements are based on

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