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

Japan Post — H1 FY2023 Earnings Presentation

37 slides from Japan Post's earnings presentation, Nov 18, 2022

1. Slide 1: Financial Results Briefing for the Six Months Ended September 30, 2022

   Financial Results Briefing for the Six Months Ended September 30, 2022 November 18, 2022

2. Slide 2: Contents

   Contents Financial Highlights for the Six Months Ended September 30, 2022 3 Overview of Financial Results for the Six Months Ended September 30, 2022 (by Business) 9 Current Status and Future Initiatives of the Group’s Real Estate Business 20 APPENDIX 31 Copyright © 2022 JAPAN POST GROUP. All Rights

3. Slide 3: Financial Highlights for the Six Months Ended September 30, 2022

   Financial Highlights for the Six Months Ended September 30, 2022 Copyright © 2022 JAPAN POST GROUP. All Rights Reserved. 3

4. Slide 4: Financial Highlights for the Six Months Ended September 30, 2022

   Japan Post Holdings: Financial Highlights for the Six Months Ended September 30, 2022  Group consolidated net income was ¥205.9 billion (a decrease of ¥59.2 billion or 22.3% year-on-year) due mainly to a decrease in extraordinary losses at Japan Post Co. associated with the transfer of Toll’s Globa

5. Slide 5: Changes in Ordinary Income and Net Ordinary Income Year-on-Year

   Japan Post Holdings: Changes in Ordinary Income and Net Ordinary Income Year-on-Year  Group consolidated ordinary income was ¥5,450.4 billion (a decrease of ¥300.3 billion or 5.2% year-on-year) due mainly to a decrease in income from foreign bond investment trusts at Japan Post Bank.  Net ordinary

6. Slide 6: Trends in Net Ordinary Income and Net Income

   Japan Post Holdings: Trends in Net Ordinary Income and Net Income  Group consolidated net ordinary income for the six months ended September 30, 2022 was ¥294.3 billion (percentage achievement: 42.1%).  Net income for the six months ended September 30, 2022 was ¥205.9 billion (percentage achieveme

7. Slide 7: Trends in Net Income of Major Companies

   Japan Post Holdings: Trends in Net Income of Major Companies for the Six Months Ended September 30, 2022  Japan Post Co. registered net income of ¥26.3 billion (percentage achievement: 43.9%) due mainly to a decrease in extraordinary losses associated with the transfer of Toll’s Global Express busi

8. Slide 8: Initiatives at Major Companies

   Japan Post Holdings: Initiatives at Major Companies*1    Volume of Yu-Pack Items Handled Balance of strategic Number of New Policies*3 investment areas*2 (Individual Insurance) (Million items) (Trillions of yen) (Policies in thousands) Approx. 9 to 10 Self-restraint Figures in () are on and the n

9. Slide 9: Overview of Financial Results for the Six Months Ended September 30, 2022 (by Business)

   Overview of Financial Results for the Six Months Ended September 30, 2022 (by Business) Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

10. Slide 10: Japan Post Co. [Postal and Domestic Logistics Business]: Financial Results

    Japan Post Co. (Consolidated) [Postal and Domestic Logistics Business]: Financial Results Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

11. Slide 11: Japan Post Co. [Post Office Business]: Financial Results

    Japan Post Co. (Consolidated) [Post Office Business]: Financial Results Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

12. Slide 12: Japan Post Co. [International Logistics Business]: Financial Results

    Japan Post Co. (Consolidated) [International Logistics Business]: Financial Results Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

13. Slide 13: Japan Post Co. (Consolidated): Financial Highlights

    Japan Post Co. (Consolidated): Financial Highlights Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

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

    Japan Post Bank (Consolidated): Financial Highlights Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

15. Slide 15: Japan Post Bank (Non-consolidated): Net Interest Income, etc.

    Japan Post Bank (Non-consolidated): Net Interest Income, etc. Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

16. Slide 16: Japan Post Bank (Non-consolidated): Status of Investment Assets

    Japan Post Bank (Non-consolidated): Status of Investment Assets Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

17. Slide 17: Japan Post Insurance (Consolidated): Financial Highlights

    Japan Post Insurance (Consolidated): Financial Highlights Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

18. Slide 18: Japan Post Insurance (Consolidated): Status of Insurance Policies

    Japan Post Insurance (Consolidated): Status of Insurance Policies Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

19. Slide 19: Japan Post Insurance (Consolidated): Status of Investment Assets

    Japan Post Insurance (Consolidated): Status of Investment Assets Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

20. Slide 20: Current Status and Future Initiatives of the Group’s Real Estate Business

    Current Status and Future Initiatives of the Group’s Real Estate Business Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

21. Slide 21: Promotion of Real Estate Business

    Promotion of Real Estate Business (Business Operation Framework and Business Development Policies)  We promote the development of primarily the Group-owned real estate with development potential listed under JP Vision 2025, along with the investment in non-Group real estate, with a view to growing

22. Slide 22: Group-Owned Property Portfolio

    Group-Owned Property Portfolio (Transition of Year-End Asset Value)  Our portfolio has expanded to approximately ¥590.0 billion in about 10 years since the completion of JP Tower (May 2012), the first property development project after the postal service privatization.  We are developing propertie

23. Slide 23: Trends in Operating Income and Net Operating Income

    Trends in Operating Income and Net Operating Income  Both operating income and net operating income have been constantly increasing from the fiscal year ended March 31, 2013 onwards.  Although we granted tenants rent reductions, exemptions, or other favors in an effort to help them mitigate the im

24. Slide 24: Financial Results for the Six Months Ended September 30, 2022

    Financial Results for the Six Months Ended September 30, 2022  Operating income in the six months ended September 30, 2022 increased by ¥1.0 billion year-on-year due mainly to the conversion of Japan Post Properties to a subsidiary. Meanwhile, net operating income decreased by ¥2.8 billion year-on-

25. Slide 25: Results and Targets of Group’s Real Estate Business

    Results and Targets of Group’s Real Estate Business  We expect to achieve the numerical targets for the fiscal year ending March 31, 2026, which comprise approx. ¥90.0 billion of operating income and ¥15.0 billion of net operating income, and whereafter we will further aim to exceed these figures i

26. Slide 26: Investment in Properties with Development Potential to Increase Rent Income

    Investment in Properties with Development Potential to Increase Rent Income  We are planning to make investments amounting to approx. ¥300.0 billion in Group-owned real estate development projects over five years between the fiscal year ended March 31, 2022 and the fiscal year ending March 31, 2026

27. Slide 27: Major Buildings Scheduled to Be Completed (Hiroshima, Kuramae)

    Major Buildings Scheduled to Be Completed (Hiroshima, Kuramae)  Hiroshima JP Building was completed in August 2022. Four more major projects in Kuramae, Toranomon-Azabudai, Gotanda and Umeda 3 Chome are scheduled to be completed successively (from FY2022 to FY2023). Hiroshima JP Building (Completed

28. Slide 28: Major Buildings Scheduled to Be Completed (Toranomon-Azabudai, Gotanda and Umeda 3 Chome)

    Major Buildings Scheduled to Be Completed (Toranomon-Azabudai, Gotanda and Umeda 3 Chome) Toranomon-Azabudai District Category 1 Gotanda Project Umeda 3 Chome Project Urban Redevelopment Project (formerly U-Port) (formerly Osaka Central Post Office) (formerly Japan Post Tokyo Regional Office, Azabu

29. Slide 29: Major Non-Group Real Estate Investments

    Major Non-Group Real Estate Investments  We have acquired office buildings, rental housings, facilities for the elderly, logistics facilities and other various income-yielding properties, while participating as partner in large-scale development projects led by major developers.  We invested aroun

30. Slide 30: Issuance of ESG Bonds (Green Bonds)

    Issuance of ESG Bonds (Green Bonds)  We issued ESG Bonds (Green Bonds) in September this year which was our first bond issuance, with a view to driving capital efficiency improvements by enhancing financial leverage through debt financing, as well as to contributing to achieving a decarbonized soci

31. Slide 31: APPENDIX

    APPENDIX Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

32. Slide 32: [Reference 1-1] Properties in Operation, and Projects under Development and Those Earmarked for Potential Development

    [Reference 1-1] Properties in Operation, and Projects under Development and Those Earmarked for Potential Development Properties in operation Number of Total floor area Classification Representative project projects ( ) Large complexes 7 736,000 JP Tower Office building 5 60,000 Omiya JP Building Re

33. Slide 33: [Reference 1-2] Properties in Operation

    [Reference 1-2] Properties in Operation Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

34. Slide 34: [Reference 1-3] Projects under Development and Those Earmarked for Potential Development

    [Reference 1-3] Projects under Development and Those Earmarked for Potential Development Projects under development Projects for which decision on development has been made and those earmarked for potential development Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

35. Slide 35: Reference 2: Japan Post Holdings: Organization Chart

    Reference 2: Japan Post Holdings: Organization Chart Copyright © 2022 JAPAN POST GROUP. All Rights Reserved.

36. Slide 36: Reference 3: Shareholder Composition

    Reference 3: Shareholder Composition (Million shares) Total 4,500 3,768 3,658 495 383 383 456 456 732 495 495 56 105 110 32 99 1,484 1,484 0.7% 4.8% 1,484 19.3% 2,456 38.6% 2,407 2,370 2,302 89.0% 4,005 80.5% 80.5% 3,622 3,622 36.7% 56.9% 56.9% 2,560 2,560 60.6% Individuals and others 2,283 Foreign

37. Slide 37: For inquiries about this document, please contact: IR Office

    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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