Financial Highlights

for the Fiscal Year Ended March 31, 2023

May 15, 2023

Japan Post Holdings: Financial Highlights

Results of Operations for the Fiscal Year Ended March 31, 2023

(Billions of yen)

Japan Post Holdings

Japan Post Co.

Japan Post Bank

Japan Post Insurance

(Consolidated)

(Consolidated)

(Consolidated)

(Consolidated)

Ordinary income

11,138.5

3,461.2

2,064.2

6,379.5

Year-on-year

(126.1)

(201.7)

+ 86.6

(74.6)

(for the fiscal year ended

March 31, 2022)

(1.1)%

(5.5)%

+ 4.3%

(1.2)%

Change

Net ordinary income

657.4

79.4

455.5

117.5

Year-on-year

(333.9)

(64.0)

(35.3)

(238.5)

(for the fiscal year ended

March 31, 2022)

(33.7)%

(44.6)%

(7.1)%

(67.0)%

Change

Net income

431.0

62.1

325.0

97.6

Year-on-year

(70.6)

(31.1)

(30.0)

(60.4)

(for the fiscal year ended

March 31, 2022)

(14.1)%

(33.4)%

(8.4)%

(38.2)%

Change

  • Forecast for the Fiscal Year Ended March 31, 2023

Net ordinary income

700.0

95.0

445.0

110.0

[percentage achievement]

[93.9%]

[83.7%]

[102.3%]

[106.9%]

Net income

400.0

60.0

320.0

97.0

[percentage achievement]

[107.8%]

[103.5%]

[101.5%]

[100.6%]

Notes: 1.Figures less than ¥0.1 billion are rounded down. The figures of Japan Post Holdings (consolidated) and the combined figures of each subsidiary do not correspond because of other consolidated accounting procedures, etc. 2.The amount of ordinary profit on the consolidated statements of income of Japan Post Insurance has been used for net ordinary income of Japan Post Insurance.

3.The amounts of net income attributable to Japan Post Holdings, net income attributable to Japan Post Co., net income attributable to Japan Post Bank and net income attributable to Japan Post Insurance have been used for net income of Japan Post Holdings (consolidated), Japan Post Co. (consolidated), Japan Post Bank (consolidated) and Japan Post Insurance (consolidated), respectively.

4.The forecast for the fiscal year ended March 31, 2023 of Japan Post Insurance (consolidated) refers to the revised forecast announced in April 2023.

Copyright © 2023 JAPAN POST GROUP. All Rights Reserved. 1

Japan Post Co. (Consolidated) [Postal and Domestic Logistics Business]:

Financial Results

  • The volume of items handled decreased by 3.4% in total year-on-year. Mail decreased by 2.8% and Yu-Mail decreased by 7.0%. Yu-Pack(Note1) decreased by 0.8% year-on-year (including an increase of 1.4% in Yu-Packet), due mainly to the severe competitive environment.
  • Operating income decreased by ¥43.3 billion year-on-year (a decrease of 2.1% year-on-year) due partly to a decrease in income from New Year's postcards, in addition to a decrease in income from parcels.
  • Net operating income decreased by ¥69.3 billion year-on-year (a decrease of 67.9% year-on-year), with an increase in operating expenses of ¥26.0 billion year-on-year (an increase of 1.3% year-on-year) due to the impact of special one-off payments, in addition to an increase in utilities expenses and expenses for new subsidiaries, (Note 2) despite continued cost control initiatives and other measures.

Analysis of Year-on-year Change in Net Operating Income

Trends in Volume of Items Handled

Net operating

income

(Fiscal year

Decrease in

ended Mar.31,

operating

2022)

income

102.2

(43.3)

〔Trends in Net Operating Income〕

(Billions of yen)

2021

2022

2023

123.7

102.2

32.8

(years ended March 31)

(Volume of items handled in millions)

20,000

19,634

( 2.2%)

19,193

( 3.4 %)

1,091

(9.4 %)

18,538

989

( 0.8 %)

18,000

980

Yu-Pack(note1)

3,299

＋ 1.4 %

3,346

(7.0 %)

Other expenses +4.9

Personnel

Collection,

Net operating

transport

expenses

income

and delivery

+21.0

(Fiscal year

outsourcing

Miscellaneous

ended Mar.31,

expenses

expenses

2023)

(1.2)

+6.1

32.8

16,000

3,113

Yu-Mail

14,000

15,244

(2.5%)

14,858

(2.8 %)

14,445

Mail

12,000

10,0000

2021

2022

2023

(years ended March 31)

Results of Operations for the Fiscal Year Ended March 31, 2023

(Billions of yen)

For the fiscal

For the fiscal

Parcels

(27.2)

(Yu-Pack(note1) and Yu-Mail)

Sales revenue of

(16.7)

Postage Stamps and Postcards

New Year's postcards

(12.1)

Optional services

＋ 11.1

Revenue from new subsidiaries

＋ 8.1

(note2)

Domestic collection,

Delivery outsourcing

(2.4)

expenses

International mails

＋ 1.2

delivery expenses

Salaries and allowances,

＋ 16.5

etc.

Retirement benefit

＋ 2.2

expenses

Legal welfare expenses

＋ 2.2

Utilities expenses

＋ 6.1

Mechanization related

＋ 5.0

expenses

Depreciation and

(4.8)

amortization

year ended

year ended

Year-on-year

change

Mar. 31, 2023

Mar. 31, 2022

Operating income

1,997.8

2,041.2

(43.3)

Operating expenses

1,964.9

1,938.9

+ 26.0

Personnel expenses

1,242.3

1,221.2

+ 21.0

Other expenses

722.6

717.6

+ 4.9

Notes: 1. Yu-Pack includes Yu-Packet.

2. Operating income and operating expenses from new subsidiaries included in the scope of consolidation from the three months ended September 30, 2021.

Net operating income

32.8

102.2

(69.3)

Copyright © 2023 JAPAN POST GROUP. All Rights Reserved. 2

Japan Post Co. (Consolidated) [Post Office Business]:

Financial Results

  • Operating income decreased by ¥77.7 billion year-on-year (a decrease of 6.8% year-on-year), with a continuing decrease in insurance commissions and banking commissions.
  • Net operating income increased by ¥24.7 billion year-on-year (an increase of 100.7% year-on-year), as operating expenses fell by ¥102.4 billion year-on-year (a decrease of 9.1% year-on-year), primarily as a result of a significant decrease in personnel expenses associated with the transition to the Japan Post Insurance's new sales system from April 2022.

Analysis of Year-on-year Change in Net Operating Income

Trends in the Earnings Structure

〔Trends in Net Operating Income〕

2021

2022

2023

37.7

24.5

49.3

(Billions of yen)

Net operating

income

(Fiscal year1,250.0

(Billions of yen)

1,243.4

(91.6)

Other operating income

1,151.7

(77.7)

Of which:

Merchandising

(years ended March 31)

Net operating

income

Commissions

(Fiscal year

ended Mar.31,

for business

2022)

consignment

24.5(71.1)

Personnel Other

expenses expenses

(99.5) (2.9)

ended Mar.31,

2023)

49.31,000.0

750.0

500.0

250.0

0.0

176.0

(58.4)

117.5

＋ 3.5

1,074.0

business

36.9

200.5

121.0

Real estate

(1.9)

198.6

(1.3)

business

29.3

197.2

Third-party

financial product

366.3

(11.9)

354.3

(14.3)

agency services

7.5

340.0

Postal service

commissions

207.0

(16.8)

190.2

(55.4)

134.8

Banking commissions

Insurance commissions

293.4

(2.4)

290.9

(10.1)

280.8

Funds to maintain

post office network

Funds to

maintain post

office network

Other operating

(10.1)

income

+3.5

2021

2022

2023

(years ended March 31)

Results of Operations for the Fiscal Year Ended March 31, 2023

(Billions of yen)

Insurance

(55.4)

commissions

Banking

(14.3)

commissions

Postal service

(1.3)

commissions

Income from rental property

＋ 5.0

Revenue from new

＋ 3.7

subsidiaries (note)

Real estate business

(3.8)

Merchandising business

(1.0)

Third-party financial product

(0)

agency services

Depreciation and

(1.2)

amotization

Utilities expenses

＋ 3.4

Salaries and

(78.7)

allowances, etc.

Legal welfare

(11.6)

expenses

For the fiscal

For the fiscal

Year-on-year

year ended

year ended

change

Mar. 31, 2023

Mar. 31, 2022

Operating income

1,074.0

1,151.7

(77.7)

Operating expenses

1,024.7

1,127.2

(102.4)

Personnel expenses

733.5

833.0

(99.5)

Other expenses

291.2

294.1

(2.9)

Net operating income

49.3

24.5

+ 24.7

Note: Revenue from new subsidiaries included in the scope of consolidation from the three months ended September 30, 2021.

Copyright © 2023 JAPAN POST GROUP. All Rights Reserved. 3

Japan Post Co. (Consolidated) [International Logistics Business]:

Financial Results

  • Operating income decreased by A$1,809 million year-on-year (a decrease of 21.9% year-on-year), partly due to a fall in cargo rates in the Global Forwarding business, in addition to the impact of a reduction in income associated with the transfer of the Global Express business in August 2021.
  • Operating expenses also decreased by A$1,578 million year-on-year (a decrease of 19.9% year-on-year) due to the reduction in expenses related to the Global Express business, but this was not enough to offset the decline in operating income, and net operating income (EBIT) fell by A$230 million year-on-year (a decrease of 66.6% year-on-year).

Trends in Net Operating Income (EBIT)

Total EBIT( )

(Millions of Australian dollars)

400

46

346

115

350

300

136

250

200

150

212

100

100

162

50

17

93

0

4

(19)

Note 4

(78)

(50)

(78)

(100)

(42)

(150)

2021

2022

2023

(years ended March 31)

■ Global Logistics ■ Global Forwarding ■ Global Express ■ Corporate/Other

Results of Operations for the Fiscal Year

Ended March 31, 2023

(Millions of Australian dollars) [Billions of yen]

For the fiscal

For the fiscal

Year-on-year

year ended

year ended

change

Mar. 31, 2023

Mar. 31, 2022

Operating income

6,469

8,279

(1,809)

(revenue)

[599.4]

[687.5]

[(88.0)]

Operating expenses

6,353

7,932

(1,578)

[588.7]

[658.7]

[(69.9)]

Personnel

1,631

1,970

(339)

expenses

[151.1]

[163.6]

[(12.4)]

Other

4,722

5,961

(1,239)

expenses

[437.5]

[495.0]

[(57.5)]

115

346

(230)

Net operating

income (EBIT)

[10.7]

[28.7]

[(18.0)]

Notes: 1. Operating income (revenue), operating expenses and net operating income ( EBIT) are the total amount of Toll, JP Toll Logistics and Toll Express Japan, respectively.

  1. Figures for the fiscal year ended March 31, 2023 and the fiscal year ended March 31, 2022 in the above graph have been reclassified due to a partial reclassification of businesses between segments for each fiscal year (total amounts are unchanged).
  2. Figures in square brackets are presented in billions of yen (Average exchange rate for the fiscal year ended March 31, 2023: ¥92.66 to A$1.00 and for the fiscal year ended March 31, 2022: ¥83.04 to A$1.00).
  3. Depreciation and amortization that have been suspended based on IFRS are recorded in operating income ( EBIT) for the Global Express business for the fiscal year ended March 31, 2022 (the effect of this is offset through Corporate/Other).

Copyright © 2023 JAPAN POST GROUP. All Rights Reserved. 4

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Japan Post Holdings Co. Ltd. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 07:17:05 UTC.