Japan Post Holdings Co., Ltd. · TSE:6178
Japan Post — Investor Presentation (July 2024)
51 slides from Japan Post's investor presentation, July 2024
Slide 1: Material For IR Meeting
Material For IR Meeting July, 2024 JAPAN POST HOLDINGS Security Code 6178
Slide 2: Contents
Contents Executive Summary Appendix 1
Slide 3: Executive Summary
Executive Summary FP JAPAN POST HOLDINGS /
Slide 4: Shareholder Return Policy
Shareholder Return Policy Continue share repurchases of substantial quantities and expand debt financing to improve capital efficiency. Continue a stable annual dividend of ¥50 per share as well, and keep an interim and year-end dividend to help reduce cost of equity by encouraging a stable shar
Slide 5: Strengths of the Japan Post Group
Strengths of the Japan Post Group The Group’s strengths include its Japan-wide post office network and its overwhelming customer base. The Group is pursuing collaboration with local governments and other organizations, aiming to make the post office network a vital base that supports local commu
Slide 6: Main Targets ROE and Net Income Targets of JP Vision 2025 plus
plus Main Targets ROE and Net Income Targets of JP Vision 2025 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
Slide 7: Appendix
Appendix FP JAPAN POST HOLDINGS /
Slide 8: 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 of the Tokyo Stock Exchange in 2015. 2017 Second sale of Japa
Slide 9: 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 10: 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. Sales of shares in two financia
Slide 11: Strong Financial Foundation
Strong Financial Foundation Equity of ¥10.6 trillion and capital adequacy ratio of 15.88% as of March 31, 2024 (for the Japan Post Group on a consolidated basis). Consolidated Capital Adequacy Ratio Total Capital Rating Information ¥ 10.6 trillion AA of which : capital and capital surplus - ¥3.6 t
Slide 12: Measures under JP Vision 2025 to date
Measures under JP Vision 2025 to date In JP Vision 2025 announced in 2021, we set out a “Co-creation Platform” to support customers and local communities as a vision and have worked to achieve this vision. Although we have promoted the enhancement of governance, collaboration with other companie
Slide 13: Basic policy of JP Vision 2025 +
Plus Basic policy of JP Vision 2025 + Before conducting the review, we clarify items to be changed or unchanged in the management of the Group. Our vision, “Co-creation Platform” to support customers and local communities, remains “unchanged.” Meanwhile, we “change” drivers to achieve the “shi
Slide 14: Three pillars of our initiatives
Three pillars of our initiatives As pillars to achieve the target after the review, we set out the following three items and focus our efforts on achievement: (1) Strengthen profitability, (2) Improve EX*1 (employee experience) by investing in human resources, and (3) Improve UX*2 (user experience
Slide 15: Three Pillars ― (1) Strengthen Profitability
Three Pillars ― (1) Strengthen Profitability 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 business and the re
Slide 16: (1) Strengthening Profitability ― Revision of Postage Rates
(1) Strengthening Profitability ― [Reference] Revision of Postage Rates Postage rates will be revised on October 1, 2024 to maintain stable postal services. The overall percentage increase due to the revision of postage rates is 26.3%. Overview of the revision Old postage rates (until September
Slide 17: Three Pillars ― (2) Improve EX by investing in human resources
Three Pillars ― (2) Improve EX by investing in human resources Aiming to increase corporate value through responding to changes in the external environment, such as worker shortages due to declines in the labor population and diversification of values and lifestyles, we will promote human capital-
Slide 18: Three Pillars ― (3) Improve UX by promoting DX, etc.
Three Pillars ― (3) Improve UX by promoting DX, etc. By promoting Group DX based on Yu ID*1, we seamlessly integrate “physical” and “digital” services and utilize data owned by the Group to improve user experience (UX). We consolidate business devices and open in-house network to improve job com
Slide 19: 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 20: Aflac Inc. to Become an Equity-Method Affiliate
Aflac Inc. to Become an Equity-Method Affiliate In May 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 . Time line Equit
Slide 21: Major Targets By Segment (FY2025)
Major Targets By Segment (FY2025) The Group sets major targets by segment and strives to achieve them*1. Operating profit margin ROE Segments Net operating income Net income Postal and domestic 3.5% ― logistics business 90.0 billion yen*2 ― Post office business ― (-49.0 billion yen*3) Internationa
Slide 22: Efforts On Growth Strategies Of Each Segment
Efforts On Growth Strategies Of Each Segment 21
Slide 23: Overall picture of the growth strategies of the postal and domestic logistics business
Overall picture of the growth strategies of the postal and domestic logistics business We will increase NPS® through improving products and services and strengthen sales structures to increase parcel volume with a focus on small parcels, in which Japan Post Co. excels. We will also build efficient
Slide 24: Postal and domestic logistics business ― Strengthen profitability
Postal and domestic logistics business ― Strengthen profitability We will strive to expand operating income from the logistics field, our competitive domain, by strengthening sales structure and sales capabilities and through collaborations with other companies. We will realize higher NPS® throu
Slide 25: Postal and Domestic Logistics Business ― Trends in volume, unit price, income
Postal and Domestic Logistics Business ― Trends in volume, unit price, income and net operating income of domestic logistics business Facing with a challenging competitive environment, we aim for an increase in volume through collaboration with companies outside the Group. The number of Yu-Pack an
Slide 26: Postal and Domestic Logistics Business — Considering the revision of postage rates
Postal and Domestic Logistics Business — Considering the revision of postage rates Volume of mail items handled continues to decline due to the advance of digitalization Considering the revision of postage rates in light of the deteriorating profitability of postal services, a revision of postag
Slide 27: Real Estate Business ― Overall picture of the growth strategies
Real Estate Business ― Overall picture of the growth strategies In light of major changes in the business environment, we steadily continue promoting the development of Group-owned real estate and the acquisition of non-Group-owned real estate, etc., so as to develop the business into one of the e
Slide 28: Real Estate Business ― Properties under development or earmarked for development
Real Estate Business ― Properties under development or those earmarked for potential development (As of April 30, 2024) Major properties under development (construction started) Succeeded Construction Name Location Site area ( ) Total floor area ( ) (planned) Level Principal use Project type assets
Slide 29: Real Estate Business ― Major development projects that have been completed
Real Estate Business ― Major development projects that have been completed (five large-scale properties, etc.) We promoted projects to develop Group-owned real estate, such as former post office sites, into Azabudai Hills Mori JP Tower, JP Tower Osaka, etc., which began operation one after another
Slide 30: Real Estate Business ― Development projects coordinated with reorganization of bases
Real Estate Business ― Real estate development projects coordinated with the reorganization of bases to streamline postal/logistics operations Through relocation and consolidation of operational functions of post offices that are in areas favorable for development, such as major station-front area
Slide 31: Real Estate Business ― Establishment of Real estate business segment and target
Real Estate Business ― Establishment of Real estate business segment and target With the establishment of Real estate business segment, we strengthen management and operational systems, thereby building a platform to support business growth. Keeping a close eye on a harsh business environment, w
Slide 32: Post Office Business ― Overall picture of the growth strategies
Post Office Business ― Overall picture of the growth strategies We will enhance profitability, as well as value, appeal and service quality of post office and build a system that allows the post office business to grow into a business of choice for customers. “Unchanged” Value we offer Support the
Slide 33: Post Office Business – Trends in operating income and net operating income
Post Office Business – Trends in operating income and net operating income Trends in operating income and net operating income of Overview of the subsidy program post office business Of the costs required to maintain the post office network, the costs* indispensable to securing Bn Bn a universal s
Slide 34: Universal Service Providing at Post Offices
Universal Service Providing at Post Offices Universal service providing at post offices Standards Postal services, simple savings, remittance, and settlement of In principle, one or more post offices must be established in each municipality (including special wards). debts and credits, and life in
Slide 35: International Logistics Business ― Overall picture of the growth strategies
International Logistics Business ― Overall picture of the growth strategies Through the growth of the Global Logistics business focused on Asia and improvement in profitability of the Global Forwarding business, we aim to sustainably expand the scale of earnings and increase profitability, thereby
Slide 36: International Logistics Business ― Trends in net operating income
International Logistics Business ― Trends in net operating income Sold unprofitable global express business in August 2021 and focused on sustainably expanding the scale of income and improving the profitability of forwarding and logistics. Trends in Net Operating Income(EBIT) From FY2020 to FY202
Slide 37: Banking Business ― Overall picture of the growth strategies
Banking Business ― Overall picture of the growth strategies Based on appropriate allocation of management resources, we promote growth strategies differentiated from those of other banks, leveraging the unique strengths of Japan Post Bank. “Unchanged” Provide "reliable and thorough” financial serv
Slide 38: Banking Business ― Retail Business Innovations (Digital Services Strategy)
Banking Business ― Retail Business Innovations (Digital Services Strategy) Maintain and cultivate the customer base by further expanding the number of users of the Yucho Bankbook App through an aggressive approach that also utilizes physical transaction channels. Develop new revenue opportunitie
Slide 39: Banking Business ― Retail Business Innovations (Asset-Building Support Business)
Banking Business ― Retail Business Innovations(Asset-Building Support Business ) Shift from sales centered on face-to-face interactions to sales via digital and remote transaction channels linked with teller channel in response to changes in the business environment, including the progress of digi
Slide 40: Banking Business ― Market Business Enhancement
Banking Business ― Market Business Enhancement Pursue an optimal investment portfolio that combines the yen interest rate portfolio with risk assets, while strengthening risk management • Seize the reversal of the trend in yen interest rates, and promote an investments from due from banks, etc. to
Slide 41: Banking Business ― Full-scale Launch of the Σ business
Banking Business ― Full-scale Launch of the Σ business (a corporate business for creating futures for societies and local communities through investment) Realize a "co-creation platform" for social and regional development with regional financial institutions, etc., and promote “Japan Post Bank's
Slide 42: Life Insurance Business ― Overall picture of the growth strategies
Life Insurance Business ― Overall picture of the growth strategies While thoroughly implementing customer-oriented business operations, we aim to retain and expand customer base based on connections across life stages/generations, and grow into a sustainable and “strong company” that can secure st
Slide 43: Life Insurance Business ― Retain and expand customer base across life stages
Life Insurance Business ― Retain and expand customer base based on connections across life stages/generations We maintain connections with customers as “a trusted partner easy to consult with” and continue providing assurance across life stages/generations. To this end, we work to expand our pro
Slide 44: Life Insurance Business ― Achieving greater depth and evolution of asset management
Life Insurance Business ― Achieving greater depth and evolution of asset management (Innovation 3.0) Under the ERM *1 framework, we aim to secure stable asset management earnings and improve asset management earnings based on ALM *2 management. We strive for greater depth and evolution of asset
Slide 45: [Reference1] Transition of Significant Management Indicators (for five years)
[Reference1] 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 Y
Slide 46: [Reference2] Financial Highlights
[Reference2] Financial Highlights Results of Operations for the Fiscal Year Ended March 31, 2024 (Billions of yen) Japan Post Holdings Japan Post Co. Japan Post Bank Japan Post Insurance (Consolidated) (Consolidated) (Consolidated) (Consolidated) Ordinary income 11,982.1 3,331.4 2,651.7 6,744.1 Ye
Slide 47: [Reference2] Financial Highlights ― Trends in Net Ordinary Income
[Reference2] Financial Highlights ― Trends in Net Ordinary Income (Billions of yen) 1,200.0 1,115.8 991.4 1,000.0 966.2 916.1 914.1 864.4 830.6 795.2 800.0 Japan Post Bank (non-consolidated) 657.6 668.3 Japan Post Holdings (consolidated) 600.0 569.4 481.9 499.6 490.8 496.0 442.0 455.5 Japan Post Ban
Slide 48: [Reference2] Financial Highlights ― Trends in Net Income (Loss)
[Reference2] Financial Highlights ― Trends in Net Income (Loss) (Billions of yen) 600.0 501.6 482.6 479.4 483.7 460.6 425.9 418.2 431.0 400.0 369.4 356.1 352.7 355.0 325.0 312.2 325.0 Japan Post Bank (consolidated) 266.1 273.4 280.1 Japan Post Holdings (consolidated) Japan Post Bank (non-consolidate
Slide 49: [Reference3] Consolidated Financial Results Forecast for FY Ending March 31, 2025
[Reference3] Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 Net income is forecast to rise by ¥11.3 billion year-on-year to ¥280.0 billion due to the application of the equity method for Aflac Incorporated and an increase in income from Japan Post Bank. Regardi
Slide 50: [Reference 4] Comparison of Postal Businesses in Major Countries
[Reference 4] Comparison of Postal Businesses in Major Countries Japan United States United Kingdom*1 France Germany Italy United States Postal Service (USPS; Post Office (retail post office company) DHL Group (changed name from Postal Business Japan Post Group an independent agency of the U.S. IDS
Slide 51: For inquiries about this document, please contact
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
Japan Post Holdings — Investor Presentation (July 2024) on 6ix