Japan Post : Financial Highlights for the Fiscal Year Ended March 31, 2020

Financial Highlights

for the Fiscal Year Ended March 31, 2020

May 15, 2020

Japan Post Holdings: Financial Highlights

 Results of Operations for the Fiscal Year Ended March 31, 2020		(Billions of yen)
	Japan Post Holdings
	Japan Post Co.	Japan Post Bank	Japan Post Insurance
	(Consolidated)
	(Consolidated)	(Consolidated)	(Consolidated)

Ordinary income	11,950.1	3,843.3	1,799.5	7,211.4
Year-on-year	(824.8)	(123.3)	(45.8)	(705.2)
(for the fiscal year ended
Mar. 31, 2019)	(6.5)%	(3.1)%	(2.4)%	(8.9)%
Change
Net ordinary income	864.4	168.1	379.1	286.6
Year-on-year	+ 33.7	(11.7)	+ 5.1	+ 21.7
(for the fiscal year ended
Mar. 31, 2019)	+ 4.1%	(6.5)%	+ 1.3%	+ 8.2%
Change
Net income	483.7	87.1	273.4	150.6
Year-on-year	+ 4.3	(39.4)	+ 7.2	+ 30.2
(for the fiscal year ended
Mar. 31, 2019)	+ 0.9%	(31.2)%	+ 2.7%	+ 25.1%
Change

• Forecast for the Fiscal Year Ended March 31, 2020

Net ordinary income		710.0	125.0	375.0	270.0
	[percentage achievement]		[121.8%]	[134.5%]	[101.1%]	[106.1%]
	Net income	420.0	100.0	270.0	134.0
	[percentage achievement]	[115.2%]	[87.2%]	[101.2%]	[112.5%]

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, 2020 of Japan Post Insurance (consolidated) refers to the revised forecast announced in November 2019.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 1

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

Financial Results

• The volume of Yu-Pack(note1) handled increased by 3.4% year-on-year for the fiscal year ended March 31, 2020 (including an increase of 19.7% for Yu-Packet). The volume of Yu-Mail handled decreased by 2.2%, and the volume of Mail handled decreased by 2.6%.
• Operating income increased by ¥10.3 billion year-on-year (an increase of 0.5% year-on-year) due to an increase in the volume of Yu- Packet handled and a rise in income from parcel field resulting from the revision of price per unit, as well as the effect of a temporary rise in the volume of mail sent.
• Net operating income increased by ¥26.1 billion year-on-year (an increase of 21.5% year-on-year) due to a decrease in operating expenses mainly owing to cost control initiatives.

Analysis of Year-on-year Change in Net Operating Income		Trends in Volume of Items Handled
〔Trends in Net Operating Income〕	(Billions of yen)		(Volume of items handled in millions)

2018	2019	2020
41.9	121.3	147.5

(years ended March 31)

Other expenses (11.4)

Net operating

Collection,

income

transport

Miscellaneous

(Fiscal year

and delivery

ended Mar 31,

outsourcing

expenses

2020)

expenses

(3.9)

147.5

Net operating

Increase in

Personnel

(7.4)

expenses

income

operating

(4.2)

(Fiscal year

income

ended Mar 31,

+ 10.3

2019)

121.3

22,500	21,735	(1.7)%	21,373	(2.2)%	20,893	Yu-Pack(note 1)
	876	+ 7.6%
20,000		942	+ 3.4%	974
3,637		3,650		Yu-Mail
17,500	+ 0.4%	(2.2)%	3,569
15,000
12,500	17,222	(2.6)%	16,781	(2.6)%	16,350	Mail
10,000
0	2018		2019		2020

(years ended March 31)

Results of Operations for the Fiscal Year Ended March 31, 2020

	For the fiscal	(Billions of yen)
For the fiscal	Year-on-year
year ended	year ended
change
Mar. 31, 2020	Mar. 31, 2019

Salaries and	(4.2)
allowances, etc.
Legal welfare	＋ 0.3
expenses

			Domestic collection,
Yu-Pack(note1) and Yu-Mail	＋ 32.4
			transport and delivery	(5.9)
New year's postcards	(12.1)
	outsourcing expenses

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

2. Includes impact of transfer of subsidiary (operating income of ¥(12.8) billion and operating expenses of ¥(12.3) billion).

Operating income	2,125.3	2,114.9	+ 10.3
Operating expenses	1,977.8	1,993.5	(15.7)
	Personnel expenses	1,257.5	1,261.8	(4.2)
	Other expenses	720.2	731.6	(11.4)
Net operating income	147.5	121.3	+ 26.1

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 2

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

Financial Results

• Operating income decreased by ¥63.8 billion year-on-year (a decrease of 4.7% year-on-year), with a decrease in insurance commissions due to refraining from making proactive sales proposals for Japan Post Insurance products from July 2019 and the suspension of solicitations from January 2020 in accordance with applicable administrative dispositions, as well as a decrease in the merchandising business due to factors such as the contraction of certain businesses.
• Net operating income decreased by ¥15.0 billion year-on-year (a decrease of 25.2% year-on-year), despite a decrease (a decrease of ¥48.7 billion or 3.7% year-on-year) in operating expenses including personnel expenses.

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

Trends in the Earnings Structure

〔Trends in Net Operating Income〕

(Billions of yen)

2018

2019

2020

39.7

59.6

44.5

(years

ended March 31)

Net operating

income

Commissions

(Fiscal year

Net operating

ended Mar

for business

income

31, 2019)

consignment

(Fiscal year

59.6

(336.7)

Other

ended Mar

expenses

31, 2020)

Personnel

(7.6)

44.5

expenses

Funds to

(44.1)

Other

maintain post

operating

office network

income

+ 295.2

(22.3)

Salaries and

(35.8)

allowances, etc.

Legal welfare

(3.6)

Merchandising

(13.5)

expenses

business

Merchandising

(16.0)

Equipment

+ 6.6

Banking

(230.9)

business

purchase costs

commissions

Third-party

Insurance

(109.3)

financial product

(5.6)

commissions

agency services

Postal service

+ 3.4

Real estate

+ 0.4

commissions

business

1,500.0								(Billions of yen)
	1,358.7	+ 3.7	1,362.5	(63.8)	1,298.7	Other operating income
		208.5	+ 0.7	209.2		186.9	Of which:
		(22.3)		Merchandising
		179.8	+ 14.6	194.5		198.0		business	112.3
1,000.0		+ 3.4		Real estate	32.0
								business
								Third-party
		598.1		600.6		369.7		financial product
		+ 2.5	(230.9)		agency services	17.3
500.0							Postal service
					248.7	commissions
						Banking commissions
		372.2	(14.1)	358.1	(109.3)		Insurance commissions
			295.2	Funds to maintain post
0.0					+ 295.2	office network
2018		2019		2020
						(years ended March 31)

Results of Operations for the Fiscal Year Ended March 31, 2020

(Billions of yen)

	For the fiscal	For the fiscal	Year-on-year
	year ended	year ended
	change
	Mar. 31, 2020	Mar. 31, 2019
Operating income	1,298.7	1,362.5	(63.8)
Operating expenses	1,254.1	1,302.9	(48.7)
Personnel expenses	870.3	911.4	(41.1)
Other expenses	383.8	391.4	(7.6)
Net operating income	44.5	59.6	(15.0)
Copyright © 2020 JAPAN POST GROUP. All Rights Reserved.	3

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

Financial Results

• Operating income decreased, affected by a decrease in the volume handled due to the spread of COVID-19, as well as targeted cyber attacks suffered by Toll in January 2020, amid persistently slow growth in the Australian economy.
• Fixed costs such as personnel expenses weighed on income, resulting in a net operating loss (EBIT) of A$117 million. Extraordinary losses were also recorded, including losses on impairment of fixed assets.
• Transformation plan is being undertaken in the fiscal year ending March 31, 2021, including comprehensive cost reductions and operational improvements, with the aim of materially improving net operating income (EBIT).

Results of Operations for the Fiscal Year

Trends in Net Operating Income (Loss) (EBIT)

Ended March 31, 2020

200

150

100

50

0

(50)

(100)

(150)

(200)

		(Millions of Australian dollars)	(Millions of Australian dollars)
Total EBIT(		)		[Billions of yen]

119		127		(117)		For the fiscal	For the fiscal
						Year-on-year
						year ended	year ended
						change
						Mar. 31, 2020	Mar. 31, 2019
191		148			Operating	8,564	8,658	(94)
			82	income (revenue)	[634.9]	[700.6]	[(65.6)]
		5
				Operating	8,681	8,531	+ 150
(10)		(8)		(30)
(2)		expenses	[643.6]	[690.3]	[(46.7)]
(58)	(18)
(Global Forwarding)
				(99)	Personnel	2,737	2,649	+ 88
					expenses	[202.9]	[214.3]	[(11.4)]
				(69)	Other	5,943	5,881	+ 61
					expenses	[440.6]	[475.9]	[(35.3)]
2018		2019		2020	Net operating	(117)	127	(244)
				(years ended March 31)	income (loss)
				[(8.6)]	[10.3]	[(18.9)]
■ Global Logistics	■ Global Forwarding	■ Global Express	■ Corporate/Other	(EBIT）

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

1. IFRS16 (Leases) has been adopted from April 1, 2019. Figures for the fiscal year ended March 31, 2020 in the above graph and table are calculated on the basis of IFRS16 (Leases).
2. Figures in square brackets are presented in billions of yen (Average exchange rate for the fiscal year ended March 31, 2020: ¥74.14 to A$1.00 and for the fiscal year ended March 31, 2019: ¥80.92 to A$1.00).

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 4

Japan Post Co. (Consolidated): Financial Highlights

• Operating income decreased by ¥121.3 billion year-on-year (a decrease of 3.1% year-on-year) to ¥3,839.3 billion, due to a decrease in income from the post office business and international logistics business, despite an increase in income from the postal and domestic logistics business.
• Net operating income decreased by ¥2.9 billion year-on-year (a decrease of 1.6% year-on-year) to ¥179.0 billion, and net ordinary income decreased by ¥11.7 billion year-on-year (a decrease of 6.5% year-on-year) to ¥168.1 billion.
• Extraordinary gains (losses) of ¥36.2 billion were recorded, mainly due to extraordinary losses at Toll, and net income decreased by ¥39.4 billion year-on-year (a decrease of 31.2% year-on-year) to ¥87.1 billion.

Analysis of Year-on-year Change in Net Income		Results of Operations for the Fiscal Year Ended March 31, 2020
(Billions of yen)		(Billions of yen)

〔Trends in Net Operating Income〕

2018

2019

2020

86.5

182.0

179.0

(years

ended March 31)

Net operating

income from

postal and

Net operating

domestic

income from

Net operating

logistics

post office

loss from

business

business

international

Net income

＋ 26.1

(15.0)

logistics

(Fiscal year

business

ended Mar 31,				(18.9)
2019)
122.6

〔Trends in Net Income〕
2018	2019		2020		For the fiscal	For the fiscal	Year-on-year
58.4	126.6		87.1		year ended	year ended
		change
		(years ended March 31)		Mar. 31, 2020	Mar. 31, 2019
				Operating income	3,839.3	3,960.6	(121.3)
				Operating expenses	3,660.2	3,778.6	(118.3)
				Personnel	2,330.8	2,387.7	(56.8)
				expenses
Other income	Extraordinary			Other expenses	1,329.3	1,390.9	(61.5)
(expenses)	gains	Consolidated	Net income	Net operating income	179.0	182.0	(2.9)
(8.7)	(losses), etc.
adjustments,	(Fiscal year
	(22.6)	Income taxes,	ended Mar 31,
		etc.	2020)
		＋ 0.3	87.1	Net ordinary income	168.1	179.8	(11.7)
Toll	(21.8)			Extraordinary gains	(36.2)	(13.5)	(22.6)
				(losses)
Consolidated adjustments	+ 4.9		Income before income	131.8	166.3	(34.4)
	taxes
Income taxes		(4.7)
		Net income	87.1
				126.6	(39.4)
				Copyright © 2020 JAPAN POST GROUP. All Rights Reserved.	5

Japan Post Bank (Non-consolidated): Financial Highlights

Results of Operations for the Fiscal Year Ended March 31, 2020

					(Billions of yen)
			For the fiscal year ended		Year-on-year
			Mar. 31, 2020	Mar. 31, 2019		change
Gross operating profit	1,314.2	1,327.0		(12.8)
	Net interest income	976.8	1,016.1		(39.3)
	Net fees and commissions	128.8	106.7		+ 22.1
	Net other operating	208.4	204.1		+ 4.3
	income
		Gains (losses) on foreign	202.1	219.4		(17.3)
		exchanges
		Gains (losses) on Japanese	8.0	(12.2)		+ 20.3
		government bonds, etc.
General and administrative	1,020.2	1,037.5		(17.2)
expenses (Note 1)
Provision for general reserve	0	-		+ 0
for possible loan losses
Net operating profit	293.9	289.4		+ 4.4
Non-recurring gains (losses)	85.1	84.8		+ 0.3
Net ordinary income	379.0	374.2		+ 4.7
Net income	273.0	266.1		+ 6.8

(Reference) Consolidated Financial Highlights

Overview

• In the extremely adverse business environment from factors such as the persistence of a low interest rate environment and deterioration of the market environment due to the spread of COVID-19, gross operating profit (non-consolidated) for the fiscal year ended March 31, 2020 decreased by ¥12.8 billion year-on- year to ¥1,314.2 billion.
  Of which, net interest income decreased by ¥39.3 billion year- on-year mainly as a result of a decrease in interest on Japanese government bonds.
  Net fees and commissions increased by ¥22.1 billion year-on- year.
  Net other operating income increased by ¥4.3 billion year-on- year.
• General and administrative expenses (non-consolidated) decreased by ¥17.2 billion year-on-year to ¥1,020.2 billion.
• Net operating profit (non-consolidated) increased by ¥4.4 billion year-on-year to ¥293.9 billion.
• Net ordinary income (non-consolidated) increased by ¥4.7 billion year-on-year to ¥379.0 billion.
• Net income (non-consolidated) increased by ¥6.8 billion year-on- year to ¥273.0 billion.

Ordinary income	1,799.5	1,845.4	(45.8)
Net ordinary income	379.1	373.9	+ 5.1
Net income (Note 2)	273.4	266.1	+ 7.2

Notes: 1. Excludes non-recurring losses.

1. The amount of net income attributable to Japan Post Bank is used for net income of Japan Post Bank (consolidated).
2. Excludes accrued interest.

(Billions of yen, %)

	As of	Change
	Mar. 31, 2020	Mar. 31, 2019
Deposits (Note 3)	183,004.7	180,999.1	+ 2,005.5
Capital adequacy ratio	15.55	15.78	(0.22)
(non-consolidated, domestic standard)

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 6

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

Net Interest Income

		(Billions of yen)
For the fiscal year ended	Year-on-year
Mar. 31, 2020	Mar. 31, 2019	change

Net interest income to	976.8	1,016.1	(39.3)
Interest income	1,318.0	1,357.9	(39.9)
Interest income on	428.1
Japanese	523.3	(95.1)
government bonds
Interest income on	787.4
foreign	698.7	+ 88.7
securities
Interest expenses	341.1	341.8	(0.6)

Deposit Balance

(Trillions of yen)

190
		179.8	180.9	183.0
180	179.4
170
160	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2020

(as of)

Note: Figures are rounded down to the first decimal place.

Net Fees and Commissions

				(Billions of yen)
		For the fiscal year ended	Year-on-year
		Mar. 31, 2020	Mar. 31, 2019	change
Net fees and commissions	128.8	106.7	+ 22.1
relating to
	Exchange and settlement	79.4	61.2	+ 18.2
	transactions
	ATMs	19.0	14.5	+ 4.5
	Investment trusts	21.7	22.2	(0.4)
	Others	8.5	8.7	(0.1)

Results of Investment Trusts Sales (Contract Basis)

	For the fiscal year ended	Year-on-year
	Mar. 31, 2020	Mar. 31, 2019	change
Number of contracts	3,170	2,303	+ 866
(thousands)
Sales amount	691.4	891.0	(199.5)
(billions of yen)
	As of	Year-on-year
	Mar. 31, 2020	Mar. 31, 2019	change
Number of investment trust	1,185	1,062	+ 123
accounts (thousands)
Net assets (billions of yen)	2,301.7	2,285.9	+ 15.8

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 7

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

(Billions of yen)

Short-term

investments and others

5.4%

	Japanese
	government
Due from	bonds
25.8%
banks, etc.	Total
24.8%

investment assets

¥207 trillion

Loans			Foreign securities, etc.
2.3%
		31.6%
Money held in trust	Japanese local
government bonds,
(Stocks, JGBs, etc.)
corporate bonds, etc.
2.1%
7.6%

As of	Composition	As of	Composition
Mar. 31,	Mar. 31,
ratio (%)	ratio (%)
2020	2019

Securities	135,198.4	65.1	137,135.2	66.5
	Japanese government	53,636.1	25.8	58,356.5	28.3
	bonds
	Japanese local
	government bonds,	15,904.8	7.6	16,279.1	7.9
	corporate bonds,
	etc.(Note 1)
	Foreign securities, etc.	65,657.5	31.6	62,499.5	30.3
		Foreign bonds	23,706.8	11.4	22,035.5	10.6
		Investment	41,901.0	20.1	40,433.9	19.6
		trusts(Note 2)
Money held in trust	4,549.7	2.1	3,990.7	1.9
(Stocks, JGBs, etc.)
	Domestic stocks	1,859.6	0.8	2,141.7	1.0
Loans	4,961.7	2.3	5,297.4	2.5
Due from banks, etc.(Note 3)	51,485.4	24.8	50,674.2	24.6
Short-term investments	11,324.2	5.4	8,877.5	4.3
and others(Note 4)
Total investment assets	207,519.6	100.0	205,975.2	100.0

Change

(1,936.8)

(4,720.4)

(374.2)

• 3,157.9
• 1,671.3
• 1,467.0 + 558.9

(282.1)

(335.6)

• • 811.1
• 2,446.7
• 1,544.3

Notes: 1. "Japanese local government bonds, corporate bonds, etc." consists of Japanese local government bonds, commercial paper, Japanese corporate bonds and Japanese stocks.

1. The major investment target in "Investment trusts" is foreign bonds.
2. "Due from banks, etc." consists of negotiable certificates of deposit, Bank of Japan deposits and monetary claims bought.
3. "Short-terminvestments and others" consists of call loans and receivables under resale agreements, etc.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 8

Japan Post Insurance (Consolidated): Financial Highlights

Results of Operations for the Fiscal Year Ended March 31, 2020

(Billions of yen, %)

	For the fiscal year ended	Year-on-year
	Mar. 31, 2020	Mar. 31, 2019	change
Ordinary income	7,211.4	7,916.6	(705.2)
Ordinary expenses	6,924.8	7,651.7	(726.9)
Ordinary profit	286.6	264.8	+ 21.7
Net income	150.6	120.4	+ 30.2
(Reference) Non-consolidated Financial Highlights
Core profit	400.6	377.1	+ 23.4
Net capital gains (losses)	(102.4)	(83.7)	(18.6)
Non-recurring gains (losses)	(11.3)	(28.2)	+ 16.9
Ordinary profit	286.8	265.1	+ 21.6
Annualized premiums from
new policies	146.9	351.3	(204.4)
(individual insurance)
	As of	Change
	Mar. 31, 2020	Mar. 31, 2019
Annualized premiums from	4,318.6	4,677.1
policies in force	(358.4)
(individual insurance)(Note 1)
Solvency margin ratio	1,070.9	1,189.8	(118.9)
(consolidated)
Real net assets	12,350.9	13,535.7	(1,184.7)
(consolidated)

Overview

• Core profit for the fiscal year ended March 31, 2020 increased by ¥23.4 billion year-on-year to ¥400.6 billion, mainly due to a decrease in operating expenses reflecting the impact of refraining from making proactive sales proposals of Japan Post Insurance products since the middle of July 2019 and the suspension of operations since January 2020, as well as an increase in positive spread, despite a decrease in the number of policies in force.
• Ordinary profit (consolidated) increased by ¥21.7 billion year-on- year to ¥286.6 billion, mainly due to an increase in core profit, in addition to a decrease in non-recurring losses, despite an increase in capital losses from stock market declines.
• Net income (consolidated) increased by ¥30.2 billion year-on-year to ¥150.6 billion, mainly due to an increase in ordinary profit (consolidated), in addition to a reversal of reserve for price fluctuations in response to capital losses, and achieved 112.5% of the financial results forecast for the fiscal year ended March 31, 2020.
• Annualized premiums from new policies for individual insurance and medical care each decreased significantly compared with the previous fiscal year. Annualized premiums from policies in force for individual insurance and medical care each decreased compared with the end of the previous fiscal year.(Notes 1 and 3)
• Internal reserves, which are the sum of contingency reserve and reserve for price fluctuations, amounted to ¥2,655.7 billion. Solvency margin ratio (consolidated), an indicator of financial soundness, amounted to 1,070.9% and real net assets (consolidated) amounted to ¥12,350.9 billion, reflecting a continuously maintained high level of financial soundness.

Notes: 1. Policies in force for individual insurance include those for Postal Life Insurance Policies, which show contracts reinsured by Japan Post Insurance from the Organization for Postal Savings, Postal Life insurance and Post Office Network.

1. Figures less than ¥0.1 billion are rounded down.
2. Please refer to "Status of Insurance Policies" on page 10 for annualized premiums from new policies and policies in force for medical care.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 9

Japan Post Insurance (Consolidated): Status of Insurance Policies

New Policies

	Annualized Premiums from New Policies				Annualized Premiums from New Policies				Number of New Policies
			(Individual Insurance)							(Medical Care)				(Individual Insurance)
	(Billions of yen)					(Billions of yen)
									(Policies in thousands)
	400.0					70.0							2,000
	300.0		376.2	351.3		60.0		59.2	61.6				1,500	1,730	1,710
				50.0
	200.0					40.0							1,000
					30.0
	100.0				146.9	20.0				22.1			500			640
				10.0
	0.0					0.0							0
	2018	2019	2020				2018	2019	2020				2018	2019	2020
				(years ended March 31)							(years ended March 31)
														(years ended March 31)

Policies in Force

Annualized Premiums from Policies in Force		Annualized Premiums from Policies in Force				Number of Policies in Force
		(Individual Insurance)						(Medical Care)					(Individual Insurance)
(Billions of yen)			New Category		(Billions of yen)			New Category		(Policies in thousands)			New Category
		Postal Life Insurance Category				Postal Life Insurance Category				Postal Life Insurance Category
6,000.0											40,000
	4,859.5	4,677.1	4,318.6		800.0		750.9	753.1	715.5		30,400	29,140
						368.8	342.1
4,000.0		1,492.1	1,313.2		600.0		321.6	30,000		27,070
	1,174.0								12,480	11,040
			400.0							20,000		9,900
		3,367.3	3,363.9	3,144.6
2,000.0				382.1	410.9	393.8		17,920	18,090	17,160
							200.0		10,000
0.0								0.0							0
	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2020		Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2020		Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2020
						(as of)								(as of)								(as of)
Notes: 1. Figures less than ¥0.1 billion are rounded down, and number of policies is rounded down to the nearest ten thousand.

2. Annualized premiums are calculated by multiplying the amount of a single premium installment payment by a multiplier determined according to the relevant payment method to arrive at a single annualized amount. For lump-sum payments, annualized premiums are calculated by dividing the total premium by the insured period.

Annualized premiums for individual insurance include those for medical care. Annualized premiums for medical care are the total of those for individual insurance and individual annuity insurance.

3."New Category" shows individual insurance policies underwritten by Japan Post Insurance. "Postal Life Insurance Category" shows Postal Life Insurance Policies reinsured by Japan Post Insurance from the Organization for Postal Savings, Postal Life Insurance and Post Office Network.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 10

Japan Post Insurance (Consolidated): Status of Investment Assets

Money held

in trust

4.3%

Other	Others
securities
9.9%
2.7%
Loans
	7.9%
		Japanese
Foreign	Total assets	government
securities	¥ 71 trillion	bonds
6.5%	51.3%

Japanese

stocks 0.4%

Japanese corporate

bonds Japanese

7.7% local government

bonds 9.4%

(Billions of yen)

As of	Composition	As of	Composition		Change
Mar. 31, 2020	ratio (%)	Mar. 31, 2019	ratio (%)

Securities	55,870.5	78.0	58,451.5	79.1	(2,581.0)
	Japanese	36,730.7	51.3	38,041.4	51.5	(1,310.6)
	government bonds
	Japanese local	6,737.3	9.4	7,524.4	10.2		(787.0)
	government bonds
	Japanese	5,486.3	7.7	5,562.9	7.5		(76.5)
	corporate bonds
	Japanese stocks	285.9	0.4	205.5	0.3		+ 80.4
	Foreign securities	4,687.3	6.5	5,284.9	7.2	(597.5)
	Other securities	1,942.7	2.7	1,832.3	2.5	+ 110.4
Money held in trust	3,056.0	4.3	2,787.5	3.8	+ 268.5
Loans	5,662.7	7.9	6,786.0	9.2	(1,123.3)
Others	7,075.4	9.9	5,879.8	8.0	+ 1,195.5
Total assets	71,664.7	100.0	73,905.0	100.0	(2,240.2)

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 11

Japan Post Holdings:

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021

• The financial results forecast has been calculated based on information on the impact of the spread of COVID-19 available to the Company as of March 31, 2020,

using certain assumptions. The actual future results may vary considerably depending upon various factors such as when the spread of COVID-19 is brought

under control.

(Billions of yen)

Net		Net		Background on the consolidated financial results forecast
ordinary	Year-on-year	Year-on-year
income	and key initiatives for the fiscal year ending March 31, 2021
income	change		change

Japan Post Holdings	520.0 (344.4)	280.0	(203.7)	-
(Consolidated)

• Japan Post Co. forecasts decreases in ordinary income and net income, mainly owing to large decreases in commission income from Japan Post Insurance and a decrease in the volume of mail handled

Japan Post Co.	40.0	(128.1)	0.0	(87.1)	■ Key initiatives to accomplish the financial results goal for the fiscal year ending March 31, 2021
- Continued implementation of initiatives aimed at customer-first business operation
(Consolidated)
				- Enhancement of measures to expand revenue in the postal and domestic logistics business, particularly from
					Yu-Packet and other small parcels, and initiatives to increase productivity (cost control, etc.)
					- Management reform of Toll, through cost reductions, etc.

• Japan Post Bank forecasts decreases in net ordinary income and net income, mainly owing to factors such as large increases in special distributions not recognized as income compared to the fiscal year ended March 31,

Japan Post Bank	275.0	(104.1)	200.0	(73.4)	2020, among distributions from investment trusts held as securities by Japan Post Bank, due to the
(Consolidated)	assumption of persistently high credit spreads overseas
					(Overseas credit spreads are expected to remain high during the first half of the fiscal year ending March 31,
					2021, then gradually shrink thereafter as the spread of COVID-19 is brought under control)

• Japan Post Insurance forecasts decreases in net ordinary income and net income, mainly owing to a decrease

Japan Post					in the number of policies in force, as well as a decrease in income from interest and stock dividends due to a
200.0	(86.6)	124.0	(26.6)	deterioration in the market environment with the spread of COVID-19
Insurance
■ Key initiatives to accomplish the financial results goal for the fiscal year ending March 31, 2021
(Consolidated)
				- Engage in initiatives to recover customer trust and thoroughly implement the business improvement plan
					- Fulfill the social mission and function of a life insurance company amid the emergency spread of COVID-19

Notes: 1. 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.

2. Net income of Japan Post Holdings (consolidated) is calculated based on the current ratio of voting rights to Japan Post Bank (approximately 89%) and Japan Post Insurance (approximately 64%), etc. by Japan Post Holdings.

Net operating	Year-on-year
income

• Returns to shareholders

• In view of the uncertain outlook for the business environment, and the current amount available for distribution, there will be no interim dividend for the fiscal year ending March 31, 2021. The year-end dividend for the fiscal year then ending, which is left undecided at this time, will be deliberated in due consideration of future financial results.

			change
Japan Post Co.	55.0	(124.0)
(Consolidated)
	Postal and Domestic	85.0	(62.5)
	Logistics Business
	Post Office Business	(35.0)	(79.5)

• Information Concerning Dividends (Japan Post Holdings)
  ・For the fiscal year ended March 31, 2020

Dividend per
Dividend	Interim	Year-end
share
payout ratio	dividend	dividend
	(consolidated)
50 Yen	41.8%	25 Yen	25 Yen

・For the fiscal year ending March 31, 2021 （Forecast）

Dividend per
Dividend	Interim	Year-end
share
payout ratio	dividend	dividend
	(consolidated)
-	-	0 Yen	Undecided

International Logistics	0.0	+ 8.6
Business

Note: In accordance with Article 11 of the Act on Japan Post Holdings Co., Ltd., payment of dividends from retained earnings or other appropriation of retained earnings (excluding disposition of loss) of Japan Post Holdings shall not be effective without the approval of the Minister for Internal Affairs and Communications.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 12

[Appendix 1] Japan Post Holdings: Organization Chart

As of Mar. 31, 2020

(Japan Post Co.,Ltd.)

Japan Post Holdings

Postal and Domestic Logistics Business

Japan Post Transport	JP Media Direct
Japan Post Maintenance	Tokyo Beiyu
JP Biz Mail

Post Office Business

Japan Post Trading Service	JP Tokyo Tokusenkai
Japan Post Building Management	Saison Asset Management (Note 1)
Japan Post Communications	JA Foods Oita(Note 1)
Japan Post Office Support	Ring Bell (Note 1)
JP General Insurance Agency	System Trust Laboratory (Note 1)
UU Gift

International Logistics Business

Toll Holdings Limited, its consolidated subsidiaries and affiliates (Note 1)

JP Toll Logistics

Toll Express Japan

Banking Business

Japan Post Investment (Note 2)	JP Asset Management (Note 1)
SDP Center	ATM Japan Business Service (Note 1)

Life Insurance Business

Japan Post Insurance System Solutions

Other Business

Japan Post Staff	Japan Post Capital
Yusei Challenged	Japan Post Real Estate
Japan Post Hotel Service	System Trust Laboratory
Japan Post Information Technology	JP Twoway Contact

Notes: 1.Affiliates accounted for by the equity method

2.Including its consolidated subsidiaries

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 13

[Appendix 2] Japan Post Co. (Consolidated):

Quarterly Consolidated Statements of Income

(Billions of yen)

Japan Post Co. (Consolidated)

Postal and

Domestic

Logistics

Business

Post Office

Business

International

Logistics

Business

	For the three-month	For the three-month	Year-on-year		For the three-month	For the three-month	Year-on-year			For the three-month	For the three-month	Year-on-year		For the three-month	For the three-month	Year-on-year
	period fromApr. to	period fromApr. to		period fromJuly to	period fromJuly to			period fromOct. to	period fromOct. to		period fromJan. to	period fromJan. to
	change		change			change		change
	June 2019	June 2018		Sept. 2019	Sept. 2018			Dec. 2019	Dec. 2018		Mar. 2020	Mar. 2019
Operating income	944.3	948.4	(4.1)	925.6	939.0	(13.3)	1,059.3	1,111.1	(51.7)	909.9	962.0	(52.0)
Operating expenses
904.0	923.3	(19.2)	909.1	938.6	(29.4)	954.4	999.0	(44.6)	892.6	917.6	(24.9)
Personnel expenses
587.4	595.0	(7.6)	579.1	591.6	(12.5)	594.0	612.6	(18.6)	570.2	588.3	(18.0)
Other expenses	316.6	328.3	(11.6)	330.0	346.9	(16.9)	360.3	386.3	(26.0)	322.3	329.2	(6.8)
Net operating income	40.2	25.1	+ 15.1	16.5	0.4	+ 16.1	104.9	112.0	(7.1)	17.3	44.4	(27.0)
Operating income	501.5	497.7	+ 3.7	489.1	468.7	+ 20.3	610.9	622.6	(11.6)	523.6	525.7	(2.0)
Operating expenses
480.0	482.9	(2.9)	482.2	488.4	(6.1)	520.0	530.9	(10.9)	495.4	491.2	+ 4.1
Personnel expenses
310.5	311.1	(0.5)	309.0	310.3	(1.3)	323.2	325.7	(2.5)	314.7	314.7	+ 0.0
Other expenses	169.4	171.8	(2.3)	173.2	178.1	(4.8)	196.7	205.1	(8.4)	180.6	176.5	+ 4.1
Net operating income (loss)	21.5	14.8	+ 6.6	6.8	(19.6)	+ 26.4	90.9	91.7	(0.7)	28.1	34.4	(6.2)
Operating income	334.9	331.6	+ 3.2	330.5	345.0	(14.4)	339.2	362.2	(23.0)	293.9	323.6	(29.6)
Operating expenses
313.0	320.7	(7.6)	316.3	327.8	(11.5)	323.5	342.5	(18.9)	301.1	311.7	(10.6)
Personnel expenses
224.2	230.3	(6.0)	218.7	228.5	(9.8)	216.8	230.8	(13.9)	210.5	221.7	(11.2)
Other expenses	88.8	90.4	(1.6)	97.6	99.3	(1.6)	106.7	111.7	(4.9)	90.6	89.9	+ 0.6
Net operating income	21.8	10.8	+ 10.9	14.1	17.1	(2.9)	15.7	19.7	(4.0)	(7.1)	11.8	(19.0)
Operating income	160.1	169.0	(8.9)	158.1	177.5	(19.4)	168.2	188.2	(19.9)	148.4	165.8	(17.4)
Operating expenses
162.0	168.3	(6.3)	160.9	174.2	(13.3)	169.3	185.5	(16.1)	151.2	162.1	(10.8)
Personnel expenses
52.6	53.6	(1.0)	51.3	52.7	(1.3)	54.0	56.1	(2.1)	44.9	51.8	(6.8)
Other expenses	109.4	114.7	(5.3)	109.5	121.5	(11.9)	115.3	129.4	(14.0)	106.3	110.3	(3.9)
Net operating income (loss)	(1.9)	0.6	(2.5)	(2.8)	3.2	(6.0)	(1.1)	2.6	(3.7)	(2.7)	3.7	(6.5)

Note: Figures for the international logistics business for the three-month period from July to September, from October to December and from January to March were calculated by subtracting the accumulated figures in billions of yen until each previous quarter's end (translated by the average exchange rate for the corresponding period) from the accumulated figures in billions of yen until each quarter's end (translated by the average exchange rate for the corresponding period).

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 14

[Appendix 3] Trends in Net Ordinary Income (Loss)

1,300.0	(Billions of yen)		1,225.0
		1,176.8
				1,103.6	1,115.8
1,100.0
							Japan Post Holdings (consolidated)
						966.2
	956.9						916.1
900.0									830.6	864.4
						795.2
700.0			Japan Post Bank (non-consolidated)
		576.2	593.5	565.0	569.4			Japan Post Bank (consolidated)
	526.5
					481.9		499.6
500.0		531.3	529.3			442.0
		492.6			373.9	379.1
	422.2			462.7
				411.5
								286.6
								264.8
300.0	Japan Post Insurance (non-consolidated)	Japan Post Insurance (consolidated)
	309.2
		179.8
							279.7	168.1
100.0	Japan Post Co. (non-consolidated)	56.5		42.3	52.2	85.4
			22.8		Japan Post Co. (consolidated)
			80.1
0.0
	32.7
	(30.8)
(100.0)
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

(years ended March 31)

Note: Net ordinary income (loss) of Japan Post Co. (non-consolidated) has been derived from net ordinary income (loss) of Japan Post Service Co. and Japan Post Network Co. up to the fiscal year ended March 31, 2013.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 15

[Appendix 4] Trends in Net Income (Loss)

600.0	(Billions of yen)		562.7
							Japan Post Holdings (consolidated)
		468.9		479.0	482.6			460.6	479.4	483.7
	418.9					425.9
400.0	316.3	334.8	373.9	354.6	369.4	325.0		352.7	Japan Post Bank (consolidated)
				312.2
								273.4
				Japan Post Bank (non-consolidated)			266.1
200.0								Japan Post Insurance (consolidated)
Japan Post Insurance (non-consolidated)							150.6
						120.4
					104.4
	77.2	67.7	91.0	62.8	81.3	84.8	88.5	126.6
						87.1
			60.0			47.2		58.4
0.0			36.0
		22.1
(4.7)	14.3
						Japan Post Co. (consolidated)
					(28.9)
	Japan Post Co. (non-consolidated)
(200.0)
(400.0)							(385.2)
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

(years ended March 31)

Notes: 1. From the fiscal year ended March 31, 2016, the amount of net income (loss) attributable to Japan Post Holdings, net income (loss) attributable to Japan Post Co. and net income attributable to Japan Post Insurance have been used for net income (loss) of Japan Post Holdings (consolidated), Japan Post Co. (consolidated) and Japan Post Insurance (consolidated), respectively.

2. Net income (loss) of Japan Post Co. (non-consolidated) has been derived from net income (loss) of Japan Post Service Co. and Japan Post Network Co. up to the fiscal year ended March 31, 2013.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved. 16

Forecasts and other forward-looking statements presented in this document are based on information that Japan Post Holdings Co., Ltd (the "Company") is aware of as of March 31, 2020 and certain assumptions that the Company has deemed reasonable, and the Company provides no assurance that the forecasts will be achieved or with respect to any other forward-looking statements. The actual future results may vary considerably depending upon various factors, such as the impact of the spread of COVID-19, interest rate fluctuations, stock price fluctuations, foreign exchange fluctuations, asset value fluctuations, changes in the economic and financial environment, changes in the competitive environment, the occurrence of large-scale disasters, etc. and changes in laws and regulations. The Company disclaims any responsibility to update any forward-looking statements contained herein to the extent permitted by law or stock exchange rule.