Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2019
February 14, 2020 | ||||||||||
Company name: | Japan Post Holdings Co., Ltd. | Stock exchange listing: | Tokyo Stock Exchange | |||||||
Code number: | 6178 | URL: | https://www.japanpost.jp/en/ | |||||||
Representative: | MASUDA Hiroya, President & CEO (Representative Executive Officer) | |||||||||
Contact: | TSURUDA Nobuo, Executive Officer, Head of IR Office | |||||||||
Phone: | +81-3-3477-0206 | |||||||||
Scheduled date of filing interim securities report: | February 14, 2020 | |||||||||
Scheduled date of commencing dividend payments: | - | |||||||||
Trading accounts: | Unestablished | |||||||||
Availability of supplementary briefing material on interim financial results: | Available | |||||||||
Schedule of interim financial results briefing session: | Scheduled (for institutional investors and analysts) | |||||||||
(Amounts of less than one million yen are rounded down.) | ||||||||||
1. Consolidated Financial Results for the Nine Months Ended December 31, 2019 | ||||||||||
(April 1, 2019 to December 31, 2019) | ||||||||||
(1) Consolidated Results of Operations | (% indicates changes from the previous corresponding period.) | |||||||||
Ordinary income | Net ordinary income | Net income attributable to | ||||||||
Japan Post Holdings | ||||||||||
Million yen | % | Million yen | % | Million yen | % | |||||
Nine months ended | 9,054,558 | (5.5) | 688,879 | 7.8 | 422,006 | 7.6 | ||||
December 31, 2019 | ||||||||||
Nine months ended | 9,582,902 | (1.6) | 638,839 | (13.4) | 392,190 | 4.5 | ||||
December 31, 2018 | ||||||||||
(Note) Comprehensive income: Nine months ended December 31, 2019: ¥ 812,826 | million [- %] | |||||||||
Nine months ended December 31, 2018: ¥ (589,368) million [- %] | ||||||||||
Net income per share | Diluted net income per share | |||||||||
Yen | Yen | |||||||||
Nine months ended | 104.37 | - | ||||||||
December 31, 2019 | ||||||||||
Nine months ended | 97.00 | - | ||||||||
December 31, 2018 | ||||||||||
(Note) Because there was no potential common stock, the amount for diluted net income per share is omitted.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio (Note) | ||
Million yen | Million yen | % | ||
As of December 31, 2019 | 291,271,032 | 15,655,457 | 4.7 | |
As of March 31, 2019 | 286,170,709 | 14,788,654 | 4.6 | |
(Reference) Equity: As of December 31, 2019: ¥13,544,581 million | ||||
As of March 31, 2019: | ¥13,293,508 million | |||
(Note) Equity ratio = [(Net assets - Non-controlling interests) / Total assets] x 100 |
2. Dividends
Annual dividend | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter-end | quarter-end | quarter-end | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended March 31, 2019 | - | 25.00 | - | 25.00 | 50.00 | |||||
Fiscal year ending March 31, 2020 | - | 25.00 | - | |||||||
Fiscal year ending March 31, 2020 | 25.00 | 50.00 | ||||||||
(Forecast) | ||||||||||
(Note) Revision of dividends forecast to the latest announcement: None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)
(% indicates changes from the previous corresponding period.)
Ordinary income | Net ordinary income | Net income attributable | Net income per share | ||||
to Japan Post Holdings | |||||||
Fiscal year ending | Million yen | % | Million yen | % | Million yen | % | Yen |
11,880,000 | (7.0) | 710,000 | (14.5) | 420,000 | (12.4) | 103.87 | |
March 31, 2020 | |||||||
(Note) Revision of financial results forecast to the latest announcement: None |
* Notes:
- Changes in significant subsidiaries during the fiscal period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Adoption of accounting method specific to preparation of interim consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
(Note) For details, please refer to [Attachment] "2. Interim Consolidated Financial Statements and Primary Notes (3) Notes to Interim Consolidated Financial Statements (Changes in Accounting Policies)" on page 7.
- Total number of shares issued (common stock)
- Total number of shares issued at the end of the fiscal period (including treasury stock): As of December 31, 2019: 4,500,000,000 shares
As of March 31, 2019: | 4,500,000,000 shares |
- Total number of treasury stock at the end of the fiscal period: As of December 31, 2019: 456,769,701 shares
As of March 31, 2019: | 456,796,001 shares |
3) Average number of shares during the fiscal period:
Nine months ended December 31, 2019: 4,043,227,218 shares
Nine months ended December 31, 2018: 4,043,193,975 shares
(Note) The total number of treasury stock at the end of the fiscal period includes the shares of the Company held by the management board benefit trust of 630,500 shares and 656,800 shares as of December 31, 2019 and March 31, 2019, respectively. The number of treasury stock excluded from calculation of the average number of shares during the fiscal period includes the shares of the Company held by the management board benefit trust of 633,581 shares and 666,824 shares for the nine months ended December 31, 2019 and 2018, respectively.
- This summary of interim consolidated financial results is outside the scope of interim audit procedures by Certified Public Accountants or Audit Firm.
- Explanation on appropriate use of financial results forecast and other specific matters
Forecasts and other forward-looking statements presented in this document are based on information available to the Company at present 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 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.
Japan Post Holdings Co., Ltd
[Attachment] | ||
Table of Contents | ||
Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive | ||
(Notes on Going-Concern Assumption) ..................................................................................................... | ||
Supplementary Briefing Material: | ||
Materials for Consolidated Financial Results for the Nine Months Ended December 31, 2019 |
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Japan Post Holdings Co., Ltd
1. Qualitative Information on Interim Consolidated Financial Results for the Fiscal Period under Review
(1) Explanation of Results of Operations
Consolidated ordinary income for the nine months ended December 31, 2019 amounted to ¥9,054,558 million (down ¥528,344 million year-on-year), of which the postal and domestic logistics business segment accounted for ¥1,603,644 million (up ¥10,930 million year-on-year); the post office business segment accounted for ¥1,005,632 million (down ¥34,199 million year-on-year); the international logistics business segment accounted for ¥486,696 million (down ¥48,488 million year-on-year); the banking business segment accounted for ¥1,358,473 million (down ¥26,228 million year-on-year); and the life insurance business segment accounted for ¥5,461,552 million (down ¥451,757 million year-on-year). Consolidated net ordinary income amounted to ¥688,879 million (up ¥50,040 million year-on-year) as a result of net ordinary income of ¥120,464 million in the postal and domestic logistics business segment (up ¥30,996 million year-on-year); net ordinary income of ¥52,115 million in the post office business segment (up ¥3,799 million year-on-year); net ordinary loss of ¥15,605 million in the international logistics business segment (net ordinary income of ¥2,759 million for the same period of the previous fiscal year) ; net ordinary income of ¥289,255 million in the banking business segment (up ¥7,422 million year-on-year); and net ordinary income of ¥233,976 million in the life insurance business segment (up ¥19,906 million year-on-year).
As a result of the above, net income attributable to Japan Post Holdings amounted to ¥422,006 million (up ¥29,816 million year-on-year), which comprises consolidated net ordinary income after adjusting for items including extraordinary gains (losses) and provision for reserve for policyholder dividends.
- Explanation of Financial Position
- Assets
Consolidated total assets were ¥291,271,032 million, up ¥5,100,323 million from the end of the previous fiscal year.
Major factors include an increase in receivables under securities borrowing transactions of ¥3,202,323 million, an increase in receivables under resale agreements of ¥1,991,225 million and an increase in cash and due from banks of ¥1,491,003 million, as well as a decrease in securities of ¥2,010,906 million.
2) Liabilities
Consolidated total liabilities were ¥275,615,575 million, up ¥4,233,520 million from the end of the previous fiscal year.
Major factors include an increase in deposits of ¥2,751,514 million and an increase in payables under repurchase agreements of ¥3,919,200 million, as well as a decrease in policy reserves of ¥1,976,329 million.
3) Net Assets
Consolidated total net assets were ¥15,655,457 million, up ¥866,802 million from the end of the previous fiscal year.
Major factors include an increase in non-controlling interests of ¥615,730 million and an increase in net unrealized gains (losses) on available-for-sale securities of ¥209,886 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections
The consolidated financial results forecast for the fiscal year ending March 31, 2020 remains unchanged from the full year forecast announced on May 15, 2019.
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Japan Post Holdings Co., Ltd
2. Interim Consolidated Financial Statements and Primary Notes
(1) Interim Consolidated Balance Sheets
(Millions of yen) | |||
As of March 31, 2019 | As of December 31, 2019 | ||
Assets | |||
Cash and due from banks | 52,244,467 | 53,735,470 | |
Call loans | 550,000 | 680,000 | |
Receivables under resale agreements | 8,368,139 | 10,359,364 | |
Receivables under securities borrowing transactions | 2,792,202 | 5,994,525 | |
Monetary claims bought | 650,638 | 650,557 | |
Trading account securities | 2 | 45 | |
Money held in trust | 6,778,335 | 8,158,101 | |
Securities | 195,647,107 | 193,636,201 | |
Loans | 12,083,499 | 10,769,958 | |
Foreign exchanges | 80,396 | 89,626 | |
Other assets | 2,419,069 | 2,591,635 | |
Tangible fixed assets | 3,155,062 | 3,267,629 | |
Intangible assets | 321,964 | 304,155 | |
Asset for retirement benefits | 50,214 | 49,987 | |
Deferred tax assets | 1,035,930 | 990,352 | |
Reserve for possible loan losses | (6,323) | (6,580) | |
Total assets | 286,170,709 | 291,271,032 |
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Japan Post Holdings Co., Ltd | |||||
(Millions of yen) | |||||
As of March 31, 2019 | As of December 31, 2019 | ||||
Liabilities | |||||
Deposits | 179,625,834 | 182,377,349 | |||
Payables under repurchase agreements | 11,569,371 | 15,488,572 | |||
Policy reserves and others | 67,093,751 | 64,966,307 | |||
Reserve for outstanding claims | 519,568 | 429,179 | |||
Policy reserves | 65,060,549 | 63,084,219 | |||
Reserve for policyholder dividends | 1,513,634 | 1,452,908 | |||
Payables under securities lending transactions | 5,896,268 | 5,527,802 | |||
Commercial papers | 28,029 | 81,985 | |||
Borrowed money | 281,021 | 308,835 | |||
Foreign exchanges | 628 | 832 | |||
Bonds | 100,000 | 100,000 | |||
Other liabilities | 2,474,349 | 2,505,792 | |||
Reserve for bonuses | 122,665 | 33,519 | |||
Liability for retirement benefits | 2,236,273 | 2,253,075 | |||
Reserve for employee stock ownership plan trust | 839 | 348 | |||
Reserve for management board benefit trust | 1,033 | 1,050 | |||
Reserve for reimbursement of deposits | 88,332 | 81,728 | |||
Reserve under the special laws | 897,492 | 887,657 | |||
Reserve for price fluctuations | 897,492 | 887,657 | |||
Deferred tax liabilities | 966,160 | 1,000,717 | |||
Total liabilities | 271,382,054 | 275,615,575 | |||
Net assets | |||||
Capital stock | 3,500,000 | 3,500,000 | |||
Capital surplus | 4,135,429 | 4,084,759 | |||
Retained earnings | 3,799,974 | 3,995,360 | |||
Treasury stock | (831,887) | (831,850) | |||
Total shareholders' equity | 10,603,516 | 10,748,269 | |||
Net unrealized gains (losses) on available-for-sale | 2,580,765 | 2,790,651 | |||
securities | |||||
Net deferred gains (losses) on hedges | (55,415) | (121,819) | |||
Foreign currency translation adjustments | (89,350) | (91,667) | |||
Accumulated adjustments for retirement benefits | 253,992 | 219,147 | |||
Total accumulated other comprehensive income | 2,689,992 | 2,796,311 | |||
Non-controlling interests | 1,495,145 | 2,110,876 | |||
Total net assets | 14,788,654 | 15,655,457 | |||
Total liabilities and net assets | 286,170,709 | 291,271,032 | |||
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Japan Post Holdings Co., Ltd
-
Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income
Interim Consolidated Statements of Income Nine months ended December 31
(Millions of yen) | |||
Nine months ended | Nine months ended | ||
December 31, 2018 | December 31, 2019 | ||
Ordinary income | 9,582,902 | 9,054,558 | |
Postal business income | 2,086,553 | 2,052,823 | |
Banking business income | 1,383,328 | 1,356,644 | |
Life insurance business income | 5,913,265 | 5,461,523 | |
Other ordinary income | 199,753 | 183,566 | |
Ordinary expenses | 8,944,062 | 8,365,678 | |
Operating expenses | 6,754,047 | 6,183,986 | |
Personnel expenses | 1,968,795 | 1,929,521 | |
Depreciation and amortization | 200,689 | 220,232 | |
Other ordinary expenses | 20,530 | 31,939 | |
Net ordinary income | 638,839 | 688,879 | |
Extraordinary gains | 11,025 | 20,914 | |
Gains on sales of fixed assets | 1,389 | 2,811 | |
Gains on negative goodwill | - | 48 | |
Reversal of reserve under the special laws | 9,096 | 9,835 | |
Reversal of reserve for price fluctuations | 9,096 | 9,835 | |
Compensation for transfer | 110 | 406 | |
Gains on transfer of business | - | 6,245 | |
Other extraordinary gains | 428 | 1,569 | |
Extraordinary losses | 15,059 | 9,871 | |
Losses on sales and disposal of fixed assets | 3,297 | 2,203 | |
Losses on impairment of fixed assets | 3,746 | 1,408 | |
Post office refurbishment expenses | 6,027 | 3,685 | |
Other extraordinary losses | 1,988 | 2,573 | |
Provision for reserve for policyholder dividends | 86,643 | 81,314 | |
Income before income taxes | 548,160 | 618,608 | |
Income taxes current | 191,236 | 196,659 | |
Income taxes deferred | (68,804) | (64,722) | |
Total income taxes | 122,432 | 131,936 | |
Net income | 425,728 | 486,671 | |
Net income attributable to non-controlling interests | 33,538 | 64,664 | |
Net income attributable to Japan Post Holdings | 392,190 | 422,006 | |
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Japan Post Holdings Co., Ltd
Interim Consolidated Statements of Comprehensive Income
Nine months ended December 31
(Millions of yen) | ||||
Nine months ended | Nine months ended | |||
December 31, 2018 | December 31, 2019 | |||
Net income | 425,728 | 486,671 | ||
Other comprehensive income (loss) | (1,015,096) | 326,154 | ||
Net unrealized gains (losses) on available-for-sale | (957,702) | 438,665 | ||
securities | ||||
Net deferred gains (losses) on hedges | (15,625) | (74,619) | ||
Foreign currency translation adjustments | (4,677) | (3,624) | ||
Adjustments for retirement benefits | (37,089) | (34,262) | ||
Share of other comprehensive loss of affiliates | (1) | (4) | ||
Comprehensive income (loss) | (589,368) | 812,826 | ||
Total comprehensive income (loss) attributable to: | ||||
Japan Post Holdings | (515,275) | 641,146 | ||
Non-controlling interests | (74,092) | 171,680 | ||
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Japan Post Holdings Co., Ltd
- Notes to Interim Consolidated Financial Statements (Notes on Going-Concern Assumption)
None
(Changes in Accounting Policies)
Toll Holdings Limited and its subsidiaries and affiliates
Effective from the beginning of the three months ended June 30, 2019, "Leases" (IFRS 16, January 13, 2016; hereinafter referred to as "IFRS 16") was applied. Accordingly, lessees are required to, in principle, record assets and liabilities for all leases on the balance sheet. IFRS 16 is applied in accordance with transitional treatments, whereby the cumulative amount of impact resulting from this change in the accounting policy is recorded under retained earnings at the beginning of the three months ended June 30, 2019.
As a result, tangible fixed assets increased by ¥176,939 million, other assets decreased by ¥113 million, other liabilities increased by ¥201,252 million, and retained earnings decreased by ¥24,426 million at the beginning of the three months ended June 30, 2019. The effect of this change on profit and loss for the nine months ended December 31, 2019 is immaterial.
(Additional Information)
Japan Post Group promotes thoroughgoing customer-first business operation as one of its critical management priorities. However, at Japan Post Insurance Co., Ltd. (hereinafter referred to as "Japan Post Insurance"), a consolidated subsidiary of the Company, following the internal investigation into the handling of customers' revision of their insurance coverage, it was discovered that in some cases, such revision was carried out in a manner that may have caused disadvantages to customers, not in line with their intentions. Consequently, Japan Post Insurance has been conducting investigations using appropriate procedures, by providing explanations to and receiving advice from the Special Investigative Committee composed of neutral and fair external experts, regarding the methods for confirming customers' intentions as well as for analyzing the information obtained.
The investigations included the investigation of specified rewriting cases to grasp the situation of customers likely to have suffered disadvantages from the rewriting of policies, as well as the investigation of all insurance policies where Japan Post Insurance sent notification documents with reply cards to customers of all other policies that were not subject to the investigation of specified rewriting cases, asking them to reconfirm their intentions and to let Japan Post Insurance know of any points it should be aware of, whereby Japan Post Insurance made necessary responses and investigations according to the results of the reconfirmation.
In conjunction with the progress made in these investigations until December 31, 2019, the Company, with regard to the investigation of specified rewriting cases, has reasonably estimated the amounts equivalent to the refund of premiums or payments of insurance claims and others that are necessary for the reinstatement of policies and other actions, and recorded a provision under other liabilities. Furthermore, with regard to the cases which have been discovered, as a result of the investigation of all insurance policies, likely to have caused disadvantages to customers based on their replies and opinions, the Company has reasonably estimated the expenses to be incurred in order to make payments to customers to compensate for their disadvantages, and recorded a provision under other liabilities. These amounts totaled ¥4,053 million.
Due to the investigation of all insurance policies, the Company grasped cases where the intentions of customers were not confirmed, such as cases where sales personnel repeatedly made many new policy applications and cancellations, which may not have been in line with the intentions of customers. The impact of these cases on the financial results of the Company could not be reasonably estimated, and accordingly, such impact has not been reflected on the interim consolidated financial statements for the nine months ended December 31, 2019.
On December 27, 2019, the Company and its consolidated subsidiary Japan Post Co., Ltd. received administrative dispositions pursuant to the Insurance Business Act, etc. from the Minister for Internal Affairs and Communications and the Financial Services Agency of Japan, on account of improper solicitation actions and underlying systematic problems. In addition, Japan Post Insurance received administrative dispositions
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Japan Post Holdings Co., Ltd
pursuant to the Insurance Business Act from the Financial Services Agency of Japan. Following the administrative dispositions, a business improvement plan was formulated and it was submitted to the Minister for Internal Affairs and Communications and the Financial Services Agency of Japan as of January 31, 2020. Japan Post Group accepts the seriousness of administrative dispositions and is resolved to treat the implementation of the business improvement plan that it formulated as its top-priority management issue, and is making group-wide efforts. Furthermore, the progress in the investigations to be conducted based on the business improvement plan and other factors may affect the financial results of Japan Post Group in the future.
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Japan Post Holdings Co., Ltd
(Segment Information)
1. Ordinary income and segment profit (loss) of reportable segments
(Millions of yen) | ||||||||
Reportable Segments | ||||||||
Postal and | International | Life | Other | Total | ||||
domestic | Post office | Banking | ||||||
logistics | insurance | Subtotal | business | |||||
logistics | business | business | ||||||
business | business | |||||||
business | ||||||||
Ordinary income | ||||||||
Ordinary income from | 1,567,704 | 141,960 | 486,575 | 1,356,644 | 5,461,523 | 9,014,408 | 39,368 | 9,053,777 |
third parties | ||||||||
Intersegment ordinary | 35,939 | 863,672 | 121 | 1,828 | 29 | 901,591 | 286,345 | 1,187,936 |
income | ||||||||
Total | 1,603,644 | 1,005,632 | 486,696 | 1,358,473 | 5,461,552 | 9,915,999 | 325,713 | 10,241,713 |
Segment profit (loss) | 120,464 | 52,115 | (15,605) | 289,255 | 233,976 | 680,208 | 229,886 | 910,094 |
(Notes) 1. Ordinary income is presented instead of net sales which is typical for companies in other industries.
2. "Other business" includes the hotel business and hospital business. Segment profit in "Other business" includes dividend income from subsidiaries and affiliates recorded by the Company in the amount of ¥219,083 million.
2. Reconciliation between total segment profit (loss) of reportable segments and net ordinary income on the interim consolidated statements of income
(Millions of yen) | |
Items | Amount |
Total segment profit (loss) of reportable segments | 680,208 |
Segment profit in other business | 229,886 |
Eliminations of intersegment transactions | (218,972) |
Adjustments | (2,242) |
Net ordinary income on the interim consolidated | 688,879 |
statements of income | |
(Note) "Adjustments" are primarily due to differences in the calculation methods used for segment loss for the international logistics business segment and net ordinary income on the interim consolidated statements of income.
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Japan Post Holdings Co. Ltd. published this content on 14 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2020 07:53:08 UTC