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

Japan Post — FY2016 Earnings Presentation

40 slides from Japan Post's earnings presentation, May 23, 2017

  1. Slide 1: For the Fiscal Year Ended March 31, 2017 Results Briefing

    For the Fiscal Year Ended March 31, 2017 Results Briefing May 23, 2017

  2. Slide 2: Contents

    Contents Summary of the Fiscal Year Ended March 31, 2017 Results Financial Results Overview for the Fiscal Year Ended March 31, 2017 Financial Results Forecast for the Fiscal Year Ending March 31, 2018 Policy for Initiatives in the Fiscal Year Ending March 31, 2018 APPENDIX Copyright © 2017 JAPAN PO

  3. Slide 3: Summary of the Fiscal Year Ended March 31, 2017 Results

    Summary of the Fiscal Year Ended March 31, 2017 Results  Japan Post Holdings (consolidated) posted a net loss of ¥28.9 billion for the fiscal year ended March 31, 2017. Impairment losses of ¥400.3 billion were posted representing the entire balance of goodwill and trademark rights as well as part o

  4. Slide 4: Financial Results Overview for the Fiscal Year Ended March 31, 2017

    Financial Results Overview for the Fiscal Year Ended March 31, 2017 Copyright © 2017 JAPAN POST GROUP. All Rights Reserved. 3

  5. Slide 5: Japan Post Holdings: Financial Highlights

    Japan Post Holdings: Financial Highlights  Results of Operations for the Fiscal Year Ended March 31, 2017 (Billions of yen) Japan Post Holdings (Consolidated) Japan Post Co. Japan Post Insurance Japan Post Bank (Consolidated) (Consolidated) Ordinary income 13,326.5 3,765.8 1,897.2 8,659.4 Year-on-y

  6. Slide 6: Japan Post Co. (Consolidated) [Postal and Domestic Logistics Business]: Financial Results

    Japan Post Co. (Consolidated) [Postal and Domestic Logistics Business]: Financial Results  Operating income remained nearly at the same level as the previous fiscal year due to an increase in income from mails handled as affected by the revision in postage fee discounts, etc., and an increase in in

  7. Slide 7: Japan Post Co. (Consolidated) [Post Office Business]: Financial Results

    Japan Post Co. (Consolidated) [Post Office Business]: Financial Results  Commissions for business consignment increased mainly due to an increase in new policy sales at Japan Post Insurance. Furthermore, income from merchandising business increased, resulting in an increase in operating income of ¥

  8. Slide 8: Japan Post Co. (Consolidated) [International Logistics Business]: Financial Results of Toll

    Japan Post Co.(Consolidated) [International Logistics Business]: Financial Results of Toll  Toll 's business is divided into 1) ANZ Domestic Network, 2) Global Forwarding and 3) Contract Logistics (3 PL).  The recent decline in profitability is driven by poor performance in ANZ Domestic Network an

  9. Slide 9: International Logistics Business: Recognition of Goodwill and Impairment Test

    Japan Post Co.(Consolidated) [International Logistics Business]: Recognition of Goodwill and Impairment Test Historical Net Operating Income (EBIT) of Toll Background to the Recognition of Impairment Losses  Upon JP’s acquisition of Toll in May 2015, goodwill etc. (Millions of Australian dollars) a

  10. Slide 10: Japan Post Co. (Consolidated): Financial Highlights

    Japan Post Co. (Consolidated): Financial Highlights Operating income, net operating income and net ordinary income increased for the fiscal year ended March 31, 2017. However, a net loss was posted for the first time since the merger between Japan Post Service Co. and Japan Post Network Co., due to

  11. Slide 11: Japan Post Bank: Financial Highlights

    Japan Post Bank: Financial Highlights Results of Operations for the Fiscal Year Ended March 31, 2017 Overview (Billions of yen) As of / for the Year-on-year  Gross operating profit for the fiscal year ended March 31, 2017 fiscal year ended change decreased by ¥41.8 billion year-on-year to ¥1,410.2

  12. Slide 12: Japan Post Bank: Business Results

    Japan Post Bank: Business Results Deposit Balance Net Fees and Commissions (Trillions of yen) (Billions of yen) 0 (as of) (year ended March 31) Investment Trust Sales Variable Annuity Insurance Sales (Billions of yen) (Billions of yen) (year ended March 31) (year ended March 31) Note: Figures are ro

  13. Slide 13: Japan Post Bank: Status of Investment Assets

    Japan Post Bank: Status of Investment Assets (Billions of yen) As of Composition As of Composition Type ratio (%) ratio (%) Mar. 31, 2017 Mar. 31, 2016 Loans 4,064.1 1.9 2,542.0 1.2 Securities 138,792.4 66.9 144,076.8 70.3 Japanese government bonds 68,804.9 33.2 82,255.6 40.1 Japanese local governme

  14. Slide 14: Japan Post Insurance (Consolidated): Financial Highlights

    Japan Post Insurance (Consolidated): Financial Highlights Results of Operations for the Fiscal Year Ended March 31, 2017 Overview (Billions of yen, number of policies in thousands) For the fiscal year ended Year-on-year Mar. 31, 2017 Mar. 31, 2016 change  Core profit (non-consolidated) for the fisc

  15. Slide 15: Japan Post Insurance (Consolidated): Status of Insurance Policies

    Japan Post Insurance (Consolidated): Status of Insurance Policies Number of Policies New Policies (Individual Insurance) Policies in Force (Individual Insurance) (Policies in thousands) (Policies in thousands) (year ended March 31) (as of) Annualized Premiums Annualized Premiums from New Policies (I

  16. Slide 16: Japan Post Insurance (Consolidated): Status of Investment Assets

    Japan Post Insurance (Consolidated): Status of Investment Assets (Billions of yen) As of Composition As of Composition Type ratio (%) ratio (%) Mar. 31, 2017 Mar. 31, 2016 Loans 8,060.9 10.0 8,978.4 11.0 Securities 63,485.2 79.0 63,609.9 78.0 Japanese government bonds 42,732.3 53.2 44,178.6 54.2 Jap

  17. Slide 17: Japan Post Holdings: Information Concerning Dividends for the fiscal year ended March 31, 2017

    Japan Post Holdings: Information Concerning Dividends for the fiscal year ended March 31,2016  Japan Post Holdings aims to provide stable returns to shareholders while maintaining required internal reserves and paying attention to capital efficiency. Accordingly, until the year ending March 31, 201

  18. Slide 18: Financial Results Forecast for the Fiscal Year Ending March 31, 2018

    Financial Results Forecast for the Fiscal Year Ending March 31, 2018 Copyright © 2017 JAPAN POST GROUP. All Rights Reserved. 17

  19. Slide 19: Japan Post Holdings: Financial Results Forecast for the Fiscal Year Ending March 31, 2018

    Japan Post Holdings: Financial Results Forecast for the Fiscal Year Ending March 31, 2018 (Billions of yen) Net Ordinary Year-on-year Year-on-year Key Initiatives for the change Net Income change Income Fiscal Year Ending March 31, 2018 (for the fiscal year (for the fiscal year ended March 31, 2017)

  20. Slide 20: Japan Post Holdings: Information Concerning Dividends for the fiscal year ending March 31, 2018

    Japan Post Holdings: Information Concerning Dividends for the fiscal year ended March 31,2016  Japan Post Holdings aims to provide stable returns to shareholders while maintaining required internal reserves and paying attention to capital efficiency. Accordingly, until the year ending March 31, 201

  21. Slide 21: Policy for Initiatives in the Fiscal Year Ending March 31, 2018

    Copyright © 2017 JAPAN POST GROUP. All Rights Reserved. 20

  22. Slide 22: Positioning of the Fiscal Year Ending March 31, 2018 in Medium-term Management Plan

    Positioning of the Fiscal Year Ending March 31, 2018 in Medium-term Management Plan New “three challenges" Pursue greater profitability Improving productivity Corporate governance and the Total lifestyle support redistribution of profits to shareholders appropriate for listed corporate group compani

  23. Slide 23: Overview of Group Strategy (Medium-term Management Plan)

    Overview of Group Strategy (Medium-term Management Plan (Announced on April 1, 2015)) Growth and development of Business targets Results for the year business for the year ending March 31, 2018 ended March 31, 2017  Yu-Pack items : Approx. 680mm  Revival of postal and  Yu-Pack items : 630mm  Yu-

  24. Slide 24: Postal and Domestic Logistics Business (1) Strategic Approach to the E-Commerce Market

    Strategy by Segment Postal and Domestic Logistics Business (1) Strategic Approach to the E-Commerce Market Operating income Improving convenience of receiving parcels (¥bn) Increase of "HAKO POST" receiving 2,000.0 lockers 1,900.0 1,929.4 1,929.9  A service enabling customers to pick up 1,800.0 1,8

  25. Slide 25: Postal and Domestic Logistics Business (2) Measures to Improve Profit Structure

    Strategy by Segment Postal and Domestic Logistics Business (2) Measures to Improve Profit Structure Net operating income (loss) Personnel expenses to sales ratio (¥bn) % 15.0 65.0 64.6 10.0 12.0 10.3 64.5 5.0 64.0 64.0 63.8 0.0 (5.0) (8.1) 63.5 (10.0) 63.0 2015 2016 2017 2015 2016 2017 (year ended M

  26. Slide 26: Post Office Business (1) Securing Stable Income from Japan Post Bank and Japan Post Insurance

    Strategy by Segment Post Office Busines (1) Securing Stable Income from Japan Post Bank and Japan Post Insurance Trends in commissions from Japan Post Bank and Japan Post Insurance Approx. 23% share (¥bn) Approx. 21% share of of the number of saving deposits of the 1,000.0 individual insurance house

  27. Slide 27: Post Office Business (2) Expanding Businesses as a Total Lifestyle Support Corporate Group

    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 income on

  28. Slide 28: International Logistics Business (1) Direction of Recovery Plans

    Strategy by Segment International Logistics Business (1) Direction of Recovery Plans Steps to Improve Contents 1 Establishing Foundation to be Competitive Reorganization targeting at realizing “One Toll” 2 Cost Reduction / Review Extensive cost reduction 3 Differentiation Customer-centricity, improv

  29. Slide 29: International Logistics Business (2) Measures to Improve Profit Structure

    Strategy by Segment International Logistics Business (2) Measures to Improve Profit Structure Now 5 divisions Change 3 divisions + 1 Group operation services TGX Global Express Service TDF Global Logistics • TGL Global Forwarding TRGL Group operation services TGF Responsibilities of Responsibilities

  30. Slide 30: Appendix

    Copyright © 2017 JAPAN POST GROUP. All Rights Reserved. 29

  31. Slide 31: [Appendix 1] Japan Post Holdings: Organization Chart

    [Appendix 1] Japan Post Holdings: Organization Chart * Affiliates accounted for by the equity method. Copyright © 2017 JAPAN POST GROUP. All Rights Reserved. 30

  32. Slide 32: [Appendix 2] Trends of Net Ordinary Income (Loss)

    [Appendix 2] Trends of Net Ordinary Income (Loss) (Billions of yen) Japan Post Holdings (consolidated) Japan Post Bank (non-consolidated) Japan Post Insurance (non-consolidated) Japan Post Insurance (consolidated) Japan Post Co. (non-consolidated) Japan Post Co. (consolidated) (year ended March 31)

  33. Slide 33: [Appendix 3] Trends of Net Income (Loss)

    [Appendix 3] Trends of Net Income (Loss) (Billions of yen) Japan Post Holdings (consolidated) Japan Post Bank (non-consolidated) Japan Post Insurance (non-consolidated) Japan Post Insurance (consolidated) Japan Post Co. (non-consolidated) Japan Post Co. (consolidated) (year ended March 31) Notes: 1.

  34. Slide 34: Japan Post Holdings Performance (Consolidated)

    Japan Post Holdings Performance(Consolidated) For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Ordinary income (¥bn) 15,849.1 15,240.1 14,258.8 14,257.5 13,326.5 Net ordinary income (¥

  35. Slide 35: Japan Post Co. Performance (Consolidated)

    Japan Post Co. Performance (Consolidated) For the year ended For the year ended For the year ended For the year ended Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Operating income Postal and domestic logistic business (¥bn) 1,805.4 1,851.9 1,924.8 1,929.9 Post office business (¥bn) 1,253.

  36. Slide 36: Japan Post Bank Performance

    Japan Post Bank Performance For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Gross operating profit (¥bn) 1,624.3 1,568.7 1,634.7 1,452.0 1,410.2 Net interest income (¥bn)1 1,532.1 1,4

  37. Slide 37: Japan Post Insurance Performance (Consolidated)

    Japan Post Insurance Performance (Consolidated) For the year ended For the year ended For the year ended For the year ended For the year ended Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Insurance premium and others (¥bn) 6,481.7 5,911.6 5,956.7 5,413.8 5,041.8 Ordinary pro

  38. Slide 38: [Notes]

    [Notes] Copyright © 2017 JAPAN POST GROUP. All Rights Reserved.

  39. Slide 39: [Notes]

    [Notes] Copyright © 2017 JAPAN POST GROUP. All Rights Reserved.

  40. Slide 40: For inquiries about this document, please contact

    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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