JAPAN POST BANK : Themed Investors Meeting "ESG Initiatives"

JAPAN POST BANK Themed Investors Meeting

March 21, 2024

Today's Theme

1 The Outline of Sustainability strategy

• The Basic Approach to HR Strategies and Main Measures
  3 The Organizational Culture and Climate Reforms
  4 Japan Post Bank's Governance

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Today's Theme

1 The Outline of Sustainability strategy

• TheBasicApproachtoHRStrategiesandMainMeasures
  3 The Organizational Culture and Climate Reforms
  4 Japan Post Bank's Governance

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The spirit since our founding

• The spirit of providing financial services equitably throughout the nation, this is the heart of Japan Post Bank since its founding.
• It has remained consistent with one of the central principles of the SDGs, "leave no one behind".

The point of "Postal savings service" established in 1875

(Provisional Translation) To provide a simple and reliable savings method to all citizens, ensuring stability in their economic lives and promoting their welfare.

- Article 1 of the Postal Savings Law

The definition of "Universal services in finance"

(Provisional Translation) Universal service means that postal services, simple savings, remittance, and settlement of debts and credits, and life insurance services that can be used easily should be integrally made available at post offices in a user-orientedand convenient manner, and should continue to be available nationwide and fairly in the future.

- Article 7-2 of the Postal Service Privatization Act and Article 5 of the Act on Japan Post Holdings Co., Ltd.

	Main history			2015
1875	2007
	Postal money orderand postal	JAPAN POST BANK	ShareslistedontheFirstSection
	savings businessestablished	(Privatized)	oftheTokyoStockExchange
	(2022TransitionedtothePrimeMarketof
	～Contributing to the stabilization of	～Expanding products and services as a private	the TokyoStockExchange)
	people's lives～	bank～	～ValueCreationasalistedcompany～

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ESG Management

• Under the medium-term Management Plan(FY2022/3 toFY2026/3),we will reaffirm our purpose and clarify the Three Missions of JAPAN POST BANK, aiming for ESG management that combines corporate value enhancement and solutions for issues facing society.

Purpose of JAPAN POST BANK

We aim for the happiness of customers and employees, and will contribute to

the development of society and the region.

The Management Philosophy of JAPAN POST BANK

We aims to become "the most accessible and trustworthy bank in Japan,"

guided by the needs and expectation of our customers.

The Mission of JAPAN POST BANK

Providing "reliable and thorough" financial services "safely and securely" to anyone and everyone

throughout Japan.

Contributing to the development of regional community economies by enhancing funds flow

to ,and relationships with, communities using various frameworks.

As one of the largest institutional investors in Japan, Japan Post Bank will work to both realize sound and profitable operations, and contribute to the realization of a sustainable society.

Realizing both the enhancement of corporate value, and contributing to the

solution issues such as SDGs(ESG management)

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Solutions for issues facing society through business activities

• From the two perspectives of importance to stakeholders and the impact of our business activities, we have established 4 Materiality to be addressed among those facing society.

	4 Materiality
Providing "safe and secure "		Contributing to regional economic
financial services to anyone and		expansions
everyone throughout Japan

Reducing environmental	Advancement of work style reforms,
impact	and sophistication of
	governance

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The 5 key strategies in the Mid-term Plan

• Linking 4 Materiality to our 5 key strategies points in the Mid-term Plan, we are promoting ESG initiatives in unison with the management.
• In promoting ESG Management, while adhering to the spirit of "leave no one behind", we will challenge of financial innovations.
• • Deepening trust, and taking on the challenge for financial innovations" ～Innovating our business model and enhancing business sustainability～

5 key strategies

• Innovating retail business into a new form by realizing complementarity between the physical and the digital

• Business reforms and productivity improvement through the active utilization of digital technology

• Enhancing funds flow to regional communities and the regional relationship functions through various frameworks

• Deepening market operational and risk management with an awareness of stress tolerance

• Strengthening the management base to become a more trusted bank

＜Relevance to Materiality＞

Advancing ESG management

Combining Management Strategies with Materiality

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Providing"safeandsecure"financialservicestoanyoneandeveryonethroughoutJapan

• We are promoting the expansion of digital services that all customers can easily access and use by innovating the retail business into a new form through the realization the of complementarity between the physical and the digital. Making the most of our physical branch network, we are carefully informing customers of all ages about our "Yucho bankbook App", which incorporates basic banking functions.
• Starting with the Yucho Bankbook App, the bank is promoting its "Co-creation Platform" strategy to collaborate with various partner companies. The challenge is to build a new retail business model that provides customers with a variety of services beyond banking services by utilizing the app's notification and announcement functions to prompt customers to visit post offices(physical locations),and to advertise the products and services of our partner companies.

Digital Channels

Dramatically expand

Convenience

accounts

Improvements

10mn

View

Learn

（Balance, cash deposit

(Notificatio

and withdrawal）

n)

8mn

Grow

accounts

Pay

(Investmen

(payment)

19年度末

23年度末

25年度末

28年度末

t trust)

2019

2023

2025

2028

Notify

Yucho In Hand

Use

（Change of

（ATM deposit and

Realize complementarity

address, etc.）

Remit

withdrawal）

Borrow

between the physical

(Account

(Remittan

overdraft)

ce)

and the digital

Co-creation Platform（Advertising Business）

Provide customers with services that extend beyond the banking sector; Develop new profit-earning opportunities by introducing/advertising the services of various partner companies

Public utility E-commerce bills

Guide

Attracting Visitors(Sending Customers to Physical Locations)

App notifications by region and customer segment ◇ Notifications regard

◇ Notifications regarding seminars and events ◇ Notifications regarding local products

(coordination with the advertising business),etc.

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Contributing to regional economic expansions

• To stimulate the development of regional economies, we launched the "Σ(Sigma) Business" as a new corporate banking business to create futures for society and regional economies through equity investment.
• Leveraging the strengths of our nationwide network covering every corner of the country, our deposit base that is the most extensive and stable in Japan, and diverse fund management experience, including in private equity investment, we engage in the fund management business(GP Business) to provide equity capital to businesses nationwide that have the drive to pursue growth.
• In cooperation with regional financial institutions and other fund providers, we promote a uniquely Japan Post way of meticulously identifying local funding needs, providing investment funds from a medium-tolong-term perspective, and accompanying investee companies to support their growth.

Regional Financial Institutions, etc.

Equity	Debt	Return	Business
Operator
			Information	Information
Business Operators with a Willingness to Grow in the Region	From Each
Financial	Collaboration

Institution

Equity	Management	Return
Support
Σ Business Investment Vehicles（	Screw ＋ESG ）

Directly-operated Branches/

Regional Headquarters

All Regions

Growth Investment/Business Succession/Business Revitalization

Venture Investment

ESG Investment

∑Data Platform

①

②

FRONTIER

③

PROSPER/

④

⑤

Trading

⑥

Spiral

⑦

Tokai Tokyo

ESG-related

Proposal

(ΣDP)

Japan Post Bank

J-Will Group

System

Capital Partners

CAPITAL INC.

Plan･Do･See

Company

Capital

Financial Group

Investment

Introduction

Venture

Company

Nationwide

(provisional Name)

Hands-on

Hands-on Support

Destination for

Trading Company

Venture

Renewable Energy

+

Support for

Centered in the

Function

Investment

Investment

Investment

Business

Japan Post

Regional

Company

Investigation

Investment

Core Region

the Tourism

Businesses

Hands-on

Company

Regional

Hydrogen Business

Results

Operator

Companies

Business

Support

CVC Fund

Collaboration

Investment

Information

Corporation

Investment

Business

Human Resources

Investment

Management

Information

Japan Post Bank

JAPAN POST

LocalFinancialInstitutionsandOtherInvestors

Co-Partners

Capital Partners

Collaboration

BANK

(Provisional name)

(Anchor Investors/Partners)

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Reducing environmental impact

• We are working to reduce our environmental impact through the two pillars of "Net zero GHG emissions by 2050" and "Decarbonization through Financial Services".
• Regarding the reduction of emissions from the finance portfolio (Scope 3, Category 15), which accounts for the majority of our GHG emissions, given that the Bank's primary business is market investment and considering the social significance of its position as a bond investor, it is important for us to take on the challenge of improving the effectiveness of our engagement (divestment is a last resort).
• We are focusing on expanding the balance of ESG-themed investments and finances from the perspective of contributing to the realization of a sustainable society through market investment operations.

Net zero GHG emissions	~ FY2023/3	FY2024/3	…	FY2026/3	…	FY2031/3	…	2050
	FY2023/3results					vs.
Emissions from	approx. 24k t-CO2	Switching our car fleet to EV
vs. FY2020/3		FY2020/3
Own Operations	(51%)	Shifting to renewable electricity,
	(60%)
(Scope1, 2)	Complete shift to		and more
	renewable electricity
	in all our sites
Emissions from the	Promote effective of our engagement based on the characteristics of
Finance Portfolio
our primary business, that is market investment operations
(Scope3 Category15)
							Net Zero
Decarbonization through	Contribute to solve social issues through ESG investment and financing, including Green
Financial Services		bonds/loans and Transition finance

the Balance of ESG-		Result	Invest in financial	Target
themed investments and		as of Mar. 31 2023	instruments such as	asof Mar.312026
finances		JPY 3.2tn	green bonds	JPY4tn
ESG Investment and		do not invest in or finance activities that are contrary to the public or social good
	invests or finances only after sufficient care is given in assessing how the funding from its
Financing Policy		investment or financing for securities or other financial instruments will be used
		(ex. Zero-credit Balance for Coal-fired Power Generation(Project Finance))

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