Financial Highlights for the Six Months Ended September 30, 2021

Financial Highlights

for the Six Months Ended September 30, 2021

November 12, 2021

Japan Post Holdings: Financial Highlights

 Results of Operations for the Six Months Ended September 30, 2021		(Billions of yen)
	Japan Post Holdings
	Japan Post Co.	Japan Post Bank	Japan Post Insurance
	(Consolidated)
	(Consolidated)	(Consolidated)	(Consolidated)

Ordinary income	5,750.7	1,788.7	1,154.0	3,226.1
Year-on-year	+ 111.6	(60.7)	+ 323.5	(159.2)
(for the six months ended
September 30, 2020)	+ 2.0%	(3.3)%	+ 38.9%	(4.7)%
Change
Net ordinary income	547.6	34.8	325.6	183.8
Year-on-year	+ 187.0	+ 19.3	+ 153.5	+ 21.1
(for the six months ended
September 30, 2020)	+ 51.9%	+ 124.6%	+ 89.2%	+ 13.0%
Change
Net income	265.1	6.4	235.3	80.5
Year-on-year	+ 86.2	+ 12.9	+ 111.0	(13.1)
(for the six months ended
September 30, 2020)	+ 48.2%	-%	+ 89.4%	(14.0)%
Change

• Forecast for the Fiscal Year Ending March 31, 2022 (Announced in May 2021)

Net ordinary income	730.0	75.0	355.0	290.0
[percentage achievement]	[75.0%]	[46.5%]	[91.7%]	[63.4%]
Net income	340.0	20.0	260.0	118.0
[percentage achievement]	[78.0%]	[32.1%]	[90.5%]	[68.3%]

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.

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

Financial Results

• The volume of items handled decreased by 1.5% in total year-on-year. Mail decreased by 1.4% and Yu-Mail increased by 2.8%, mainly due to the abatement of the impact of the decline in mail due to COVID-19 seen in the previous fiscal year. On the other hand, Yu-Pack(note) decreased by 13.3% year-on-year (including a decline of 22.7% in Yu-Packet), due mainly to a reactionary decline following the increase in stay-at-home consumption in the previous fiscal year.
• Operating income decreased by ¥8.6 billion year-on-year (a decrease of 0.9% year-on-year), with an increase in income from resuming international mail service not enough to offset a decrease in income from parcels due to a decline in Yu-Pack(note) volumes.
• Net operating income was almost unchanged year-on-year, increasing by ¥0.7 billion as a result of a decrease in operating expenses mainly due to cost control initiatives.

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

〔Trends in Net Operating Income〕

(Billions of yen)

2019

2020

2021

28.3

6.4

7.2

(six months ended September 30)

Net operating

Net operating

income

income

Other expenses (1.3)

(Six months

(Six months

ended

ended

Decrease in

Miscellaneous

September 30,

September 30,

operating

transport

expenses

2021)

2020)

income

Personnel

and delivery

(7.6)

7.2

6.4

(8.6)

expenses

outsourcing

(8.0)

+6.2

							Postal service	(6.3)
Parcels	(18.4)						commissions
(Yu-Pack(note) and Yu-Mail)
				International mails		＋ 6.0
Standard mail	(4.6)				delivery expense
International mail	＋ 8.9			Salaries and	(4.7)
	allowances, etc.
International mail remuneration	＋ 6.2			Legal welfare	(2.4)
(terminal dues, etc.)		expenses

Note: Yu-Pack includes Yu-Packet.

Trends in Volume of Items Handled

10,000	9,595			(Volume of items handled in millions)
( 7.7 %)
	468
9,000	＋21.0 %	8,858	( 1.5 %)	8,729
	567		Yu-Pack(note)
	1,700		( 13.3 %)	491
	( 9.5 %)
8,000
				Yu-Mail
7,000			1,539	＋2.8 %	1,582
	(9.1 %)
					Mail
6,000	7,427		6,753	( 1.4 %)	6,655
0
	2019		2020		2021

(six months ended September 30)

Results of Operations for the Six Months Ended September 30, 2021

			For the six	(Billions of yen)
		For the six	Year-on-year
		months ended	months ended
		change
		Sept. 30, 2021	Sept. 30, 2020
Operating income	954.0	962.7	(8.6)
Operating expenses	946.8	956.2	(9.4)
	Personnel expenses	604.0	612.0	(8.0)
	Other expenses	342.7	344.1	(1.3)

Net operating income

7.2

6.4

+ 0.7

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

Financial Results

• Operating income decreased by ¥43.7 billion year-on-year (a decrease of 7.1% year-on-year), with a decline in income from the merchandising business due to the impact of the application of a new Accounting Standard for Revenue Recognition (note) and the absence of the income from real estate sales recorded in the previous year, as well as a continuing decrease in banking commissions and insurance commissions.
• Net operating income decreased by ¥3.2 billion year-on-year (a decrease of 14.2% year-on-year), although operating expenses also continued to decrease primarily as a result of a decrease in other expenses in the merchandising business due to the impact of the application of a new Accounting Standard for Revenue Recognition (note).

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

〔Trends in Net Operating Income〕		(Billions of yen)
2019	2020	2021
36.0	22.8	19.5

	(six months ended September 30)
Net operating
income					Net operating
(Six months
Commissions				income
ended
			(Six months
September 30,	for business
			ended
2020)	consignment	Funds to		Other	September 30,
22.8	(9.0)	Other	expenses	2021)
		maintain post	operating	(37.2)	19.5
		office network
		income
		(1.2)
		(33.5)

Personnel

expenses

(3.3)

						Merchandising	(32.0)
Banking	(5.5)		Merchandising	(31.4)		business (note)
	business (note)		Depreciation
commissions				(3.0)
Insurance	(2.8)		Real estate	(5.4)		and amortization
	business
Commissions
		Third-party			Legal welfare	(1.8)
Postal service
(0.6)		financial product	(1.1)		expenses
commissions			agency services			Salaries and	(0.5)
						allowances, etc.

Note: Pursuant to the application of a new Accounting Standard for Revenue Recognition, certain transactions in the Merchandising business, etc. are now treated as transactions undertaken as an agent, and the amount of income recognized for these transactions has changed from a gross amount to a net amount (resulting in a reduction of ¥29.2 billion).

Trends in the Earnings Structure

	665.5						(Billions of yen)
	( 48.8)	616.6
600.0	93.1	(43.7)	572.8	Of which:
( 7.4)
			85.7		Other operating income
	94.4		(33.5)	52.2	Merchandising
	＋ 3.1
	97.5	(0.6)	96.9	business (note)	16.1
				Real estate
400.0	189.1						business	16.0
( 1.9)	187.2				Third-party
	(5.5)	181.7
				financial product	4.0
							agency services
	141.0	( 41.6)				Postal service
200.0	99.3	(2.8)	96.5	commissions
		Banking commissions
	147.6	( 0.9)	146.7	(1.2)	145.4	Insurance commissions
	Funds to maintain post
0.0						office network
2019		2020		2021
				(six months ended September 30)

Results of Operations for the Six Months Ended September 30, 2021

(Billions of yen)

	For the six	For the six	Year-on-year
	months ended	months ended
	change
	Sept. 30, 2021	Sept. 30, 2020
Operating income	572.8	616.6	(43.7)
Operating expenses	553.3	593.8	(40.5)
Personnel expenses	416.0	419.3	(3.3)
Other expenses	137.2	174.4	(37.2)
Net operating income	19.5	22.8	(3.2)
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Japan Post Co. (Consolidated) [International Logistics Business]:

Financial Results

• Operating income decreased by A$659 million year-on-year (a decrease of 12.9% year-on-year), due mainly to a decrease in large-scale handling related to COVID-19 by the Global Logistics business and a reduction in income due to the completed transfer of the Global Express business, despite an increase in the Global Forwarding business due to greater cargo demand.
• Operating expenses decreased by A$931 million year-on-year (a decrease of 18.0% year-on-year), due mainly to a decline in other expenses due to the decrease in large-scale handling by the Global Logistics business and a reduction in expenses due to the completed transfer of the Global Express business, despite an increase in the Global Forwarding business due to greater cargo demand. Net operating income (EBIT) returned to profit, increasing by A$271 million year-on-year.

Results of Operations for the Six Months

Trends in Net Operating Income (Loss) (EBIT)

Ended September 30, 2021

	Total EBIT(	)		(Millions of Australian dollars)			(Millions of Australian dollars)
	(63)		(84)		187					[Billions of yen]
210					For the six	For the six	Year-on-year
								months ended	months ended
								change
150					61			Sept. 30, 2021	Sept. 30, 2020
						4,439	5,098	(659)
						Operating income
90					93		(revenue)	[366.8]	[373.6]	[(6.8)]
30			61		53		Operating	4,251	5,182	(931)
20			Note 4	expenses	[351.3]	[379.8]	[(28.4)]
		(3)
	(6)			(19)		Personnel	1,141	1,297	(155)
(30)	(41)				Note 5
				expenses	[94.3]	[95.0]	[(0.7)]
	(34)		(121)
					Other	3,109	3,885	(775)
(90)
			(20)				expenses	[256.9]	[284.7]	[(27.7)]
(150)						Net operating	187	(84)	+ 271
2019		2020		2021
				income (loss)	[15.4]	[(6.1)]	[+ 21.6]
				(six months ended September 30)	(EBIT）
	■ Global Logistics		■ Global Forwarding	■ Global Express	■ Corporate/Other

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. Figures for each fiscal year in the above graph have been reclassified due to a partial reclassification of businesses between segments for the fiscal years ended/ending March 31, 2022 and 2021(total amounts are unchanged).
2. Figures in square brackets are presented in billions of yen (Average exchange rate for the six months ended September 30, 2021: ¥82.63 to A$1.00 and for the six months ended September 30, 2020: ¥73.28 to A$1.00).
3. Depreciation and amortization that have been suspended based on IFRS are recorded in operating income (loss) (EBIT) for the Global Express business for the six months ended September 30, 2021 (the effect of this is offset through Corporate/Other).
4. Income (loss) for the Global Express business only includes the period up to August 2021, due to the completion of the business transfer on August 31, 2021.

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