Japan Post : Materials for Overseas IR

Material For IR Meeting

July, 2024

JAPAN POST HOLDINGS

（Security Code ： 6178）

Contents

０１		Executive Summary

０２Appendix

2

6

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1

Executive Summary

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2

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 share price throughout the year.
• Shareholder return policy

Share repurchase	Continuously perform substantial share repurchases to further enhance shareholder returns and
	improve capital efficiency

Dividend policy Continue a stable annual dividend of ¥50 per share consisting of an interim and year-end dividend

▌ Returning Capital to Shareholders
400
		Share Repurchase（Billions of Yen）
	＊1			350
300	350
		300
200		200
100
FY2021	FY2022	FY2023	FY2024
Dividend payout ratio	37.9%	41.4%	62.3%	55.0%
Total shareholder	106.3%	86.5%	172.3%	178.9%
return ratio

＊1 Including 4.5 billion yen acquired in April 2022

＊2 Please refer to "Notice Concerning the Determination of Matters Related to the Acquisition of Treasury Stock" released in May 15, 2024 for details

App.

150.0

App.¥500 billion

350.0

Share Repurchase		Dividend Total

＊3 Dividend total, dividend payout ratio, and total shareholder return ratio in FY 2024 take into account a decrease of dividend payment when performing share repurchase of 350 billion yen

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3

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 communities.

• Strength 1 Post office network

Number of post offices per million people

▌ Strength 2 Overwhelming customer base

Number of mail delivery points

Number of post offices

Approx. 24,000

	Japan	U.K.	U.S.
Number of post offices (1)	23,521	11,635	33,493
Population (million people) (2)	124	68	335
Number of post offices per million	189	172	100
people ((1)/(2))

Notes: Number of post offices: Japan as of April 30, 2024, U.K. as of March 31, 2022, U.S. as of September 30, 2023

Population: Figures published by each country; Japan and U.S. as of October 1, 2023, U.K. as of 2022

Approx. 31,000,000 per day

Number of ordinary deposit accounts

Approx. 120,000,000

Number of Japan Post Insurance customers*

Approx. 18,070,000

Number of mail boxes

Approx. 174,000

Number of motorcycles

Approx. 80,000

Note: As of March 31, 2024

• • This number represents the sum of policyholders and insured persons (including both individual insurance and individual annuity insurance, and including Postal Life Insurance Policies reinsured by Japan Post Insurance).
• Strength 3 Post offices rooted in the local community

Proportion of prefectures with which

comprehensive partnership agreements have

been signed

95.7 %

Proportion of	Proportion of
municipalities with	municipalities
which agreements on	collaborating on
local partnership have	disaster prevention
been signed	agreements
99.7 %	93.6 %

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4

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 for an ROE of 4% or higher in FY2025.

Positioning

in 2024-2025

"Transition" to the growth stage

Major targets in
	ROE	4%＊or higher	Consolidated	570.0 billion yen
FY2025
	net income
(After revision)

ROE and Net Income Targets

* We aim to exceed our cost of equity of approx. 5% as soon as possible.

(Billions of Yen)

618.5

	Increasing ROE
ROE: 4% or higher
Consolidated net income: 570.0 billion yen

ROE：		Impact of the sales of
4.7%
	Japan Post Bank shares
520.6	4.4%	(89.0%⇒61.5%)
501.6

447.4

431.0

360.0

App.＊3

(98.0)

280.0

Consolidated net income

3.0% 268.6

Consolidated net income attributable to Japan Post Holdings ＊1

＊1	FY2021	FY2022	FY2023	FY2024 ＊2	FY2025	FY2026～
Shareholding ratios of Japan Post Bank and Japan Post Insurance in net income attributable to	Japan Post Holdings are calculated based on the figures as of May 2024.
＊2	Consolidated net income attributable to Japan Post Holdings has been announced as Forecast for the Fiscal Year Ending March 31, 2025 in the financial results for the fiscal
＊3	year ended March 31, 2024 released on the same day.
The impact is calculated as the difference between the net income of Japan Post Bank in the fiscal year ended March 31, 2024 (¥356.1 billion) multiplied by the Company's shareholders' equity of 89%
	and multiplied by the Company's shareholder's equity of 61.5%

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5

Appendix

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6

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.

The Ministry of Posts and

Telecommunications

• 2012
  Reorganized into the current four-company

structure

• 2017

Second sale of Japan Post Holdings

• 2021

Established "JP Vision 2025" Third sale of Japan Post

Hisoka Maejima

 1871

Modern postal service established

• 1875

Postal money order service and Postal savings service established

 1885

Ministry of

1916

Postal life insurance service established

• 1949

The Ministry of Posts and Telecommunications established

• 2001

Postal Services Agency established

• 2003

Japan Post established

• 2007

The Japan Post Group was established

Japan Post Group established with Japan Post Holdings Co., Ltd., Japan Post Service Co., Ltd., Japan Post Network Co., Ltd., Japan Post Bank Co., Ltd., and Japan Post Insurance Co., Ltd

Japan Post Service and Japan Post Network merged, and Japan Post Co., Ltd. established.

• 2015

Listed on the First Section of the Tokyo Stock Exchange

Holdings

The 150th anniversary of the foundation of the Japan Post Group

• Presently, transition to the Tokyo Stock Exchange Prime Market

Communications

established

"Mail Handling" illustrates No.9

A scene of receiving mails and saving money

Azabudai Hills Mori JP Tower

Ichikawa-Minami Post Office

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7

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 less during the period of this Medium-term Management Plan.

100％※

61.5％※

49.8％※

	Postal and Domestic		Banking Business		Life Insurance Business
	Logistics Business
	International Logistics
	Operations		Operations
	Business
		Consignment		Consignment
	Real Estate Business
	Post Office
	Postal Counter Operations		Banking Counter Operations		Insurance Counter Operations
	Merchandise Sales		Investment Trust Sales		Cancer Insurance Sales
					※ the ratio of shareholders' equity

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8

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 financial subsidiaries

Proceeds from the sales of shares in two financial subsidiaries

November 2015

Listed on the First Section of the Tokyo Stock Exchange (approx.¥743.0 bil. )

April 2019

Second sale of Japan Post Insurance

（approx.¥415.0 bil.）

June 2021

Share repurchase Equity disposal trust of Japan Post Insurance

（approx.¥350.0 bil.）

	JPH
	89％	89％
JP	JPB	JPI

JPH

	89％	64.5％
JP	JPB	JPI

	JPH
	89％	49.9％
JP	JPB
JPI

Share repurchases

（¥1.68 Tn）

Capital and business Alliance with Aflac （¥0.3 Tn）

Capital and business

Alliance with Rakuten

Group （¥0.15Tn）

Proceeds from

Sale of JPB shares

Shareholder Return

Share repurchases

• ¥300 billion in FY2023 （Aug. 2023-Mar. 2024）
• ¥350 billion at maximum in FY 2024 （May.2024-Mar.2025）
• Continuously perform substantial share repurchases

Growth Investments

 Investment for increased

capacity in our logistics

business

March 2023		JPH
Second sale of Japan Post		60.6％	49.9％
Bank（approx. ¥1,200.0 bil.）	JP	JPB	JPI

※ Japan Post Bank shares : 61.5%（As of May 2024)

※ Japan Post Insurance shares : 49.8%（As of May 2024)

• Policy to dispose of shares so that the Company's equity interests in the two financial subsidiaries will be 50% or less during the period of this Medium-term Management Plan.

（¥1.2 Tn）

Using Debts

Cash on hand

 Real estate investment

 Investment in human

resources

 Strategic IT investment

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