Financial Highlights

for the Three Months Ended June 30, 2020

August 7, 2020

Japan Post Holdings: Financial Highlights

Results of Operations for the Three Months Ended June 30, 2020

(Billions of yen)

Japan Post Holdings

Japan Post Co.

Japan Post Bank

Japan Post Insurance

(Consolidated)

(Consolidated)

(Consolidated)

(Consolidated)

Ordinary income

2,793.0

927.9

387.6

1,696.3

Year-on-year

(192.0)

(17.6)

(76.2)

(122.5)

(for the three months ended

June 30, 2019)

(6.4)%

(1.9)%

(16.4)%

(6.7)%

Change

Net ordinary income

133.2

19.2

42.0

69.9

Year-on-year

(69.0)

(18.4)

(63.6)

+ 13.9

(for the three months ended

June 30, 2019)

(34.1)%

(49.0)%

(60.2)%

+ 24.9%

Change

Net income

78.7

16.6

33.2

46.7

Year-on-year

(56.2)

(18.7)

(44.6)

+ 12.9

(for the three months ended

June 30, 2019)

(41.7)%

(52.9)%

(57.3)%

+ 38.3%

Change

  • Forecast for the Fiscal Year Ending March 31, 2021 (Announced in May 2020)

Net ordinary income

520.0

40.0

275.0

200.0

[percentage achievement]

[25.6%]

[48.0%]

[15.2%]

[35.0%]

Net income

280.0

0.0

200.0

124.0

[percentage achievement]

[28.1%]

[ -%]

[16.6%]

[37.7%]

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.

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

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

Financial Results

  • The overall volume of items handled decreased by 6.2% year-on-year (including a 7.5% decrease for Mail, and a 9.0% decrease for Yu- Mail), with a slowdown in economic activity due to the impact of the spread of COVID-19. Of this, the volume of Yu-Pack(note 1) increased by 26.4% year-on-year(Yu-Packet increased by 41.8%), due to expanded use of e-commerce with increased stay-at-home consumption.
  • Operating income decreased by ¥11.3 billion year-on-year (a decrease of 2.3% year-on-year) due mainly to the effects of a decrease in volume of items handled and the suspension of international mail services, despite higher income from parcels associated with an increase in Yu-Pack volumes.
  • Net operating income decreased by ¥6.1 billion year-on-year (a decrease of 28.4% year-on-year), despite 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)

2018

2019

2020

14.8

21.5

15.4

(three months

ended June 30)

Net operating

Other expenses +0.1

income

Collection,

(Three months

Decrease in

transport

Net operating

ended June 30,

operating

and delivery

2019)

Miscellaneous

income

income

outsourcing

21.5

(11.3)

Personnel

expenses

expenses

(Three months

ended June 30,

(3.5)

+3.6

expenses

2020)

(5.3)

15.4

(Volume of items handled in millions)

5,000

4,949

( 1.3 %)

4,883

( 6.2 %)

4,582

233

( 2.6 %)

227

26.4 %

Yu-Pack(note 1)

286

884

( 3.0 %)

857

( 9.0 %)

4,000

781

Yu-Mail

3,000

3,832

(0.9 %)

3,799

( 7.5 %)

Mail

3,515

0

2018

2019

2020

(three months ended June 30)

Salaries and

(5.5)

allowances, etc.

Legal welfare

0.1

expenses

Results of Operations for the Three Months Ended June 30, 2020

For the three

(Billions of yen)

For the three

Year-on-year

months ended

months ended

change

June 30, 2020

June 30, 2019

International mails

(10.9)

Postal service

Operating income

490.1

501.5

(11.3)

1.9

International mail remuneration

commissions

474.7

480.0

(5.2)

(8.1)

Operating expenses

(terminal dues, etc.)(note 2)

International mails

(6.1)

Standard mail

(4.8)

delivery expenses

Personnel expenses

305.1

310.5

(5.3)

Parcels

12.6

Domestic collection,

(Yu-Pack(note 1) and Yu-Mail)

transport and delivery

2.6

outsourcing expenses

Other expenses

169.6

169.4

+ 0.1

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

2. Includes a lump-sumcorrection of ¥(7.0) billion for overstatements in previous

Net operating income

15.4

21.5

(6.1)

fiscal years related to International ePacket Light, etc.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved.

2

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

Financial Results

  • Operating income decreased by ¥31.0 billion year-on-year (a decrease of 9.3% year-on-year), resulting mainly from a significant decrease in insurance commissions due to refraining from making proactive sales proposals of Japan Post Insurance products, and a decrease in other operating income, primarily due to a decrease in the merchandising business because of factors such as the impact of the spread of COVID-19.
  • Net operating income decreased by ¥7.1 billion year-on-year (a decrease of 32.6% year-on-year), despite a decrease of ¥23.9 billion year- on-year (a decrease of 7.6% year-on-year) in operating expenses, due to factors such as a decrease in sales allowances for the sale of Japan Post Insurance products.

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

Trends in Net Operating Income

(Billions of yen)

2018

2019

2020

10.8

21.8

14.7

(three months ended June 30)

Net operating

income

(Three months

Commissions

ended June

for business

Net operating

30, 2019)

consignment

income

21.8

(23.1)

Other

(Three months

ended June

expenses

30, 2020)

(9.2)

14.7

Personnel

Funds to

Other

expenses

maintain post

(14.6)

office network

operating

(0.4)

income

(7.4)

Merchandising

(3.5)

Insurance

(22.6)

business

commissions

Equipment

(1.6)

Banking

(2.5)

Merchandising

(4.4)

purchase costs

commissions

business

Postal service

Third-party

+ 1.9

Salaries and

commissions

financial product

(2.1)

(13.2)

allowances, etc.

agency services

Real estate

(0.6)

Legal welfare

(0.9)

business

expenses

Trends in the Earnings Structure

400.0

(Billions of yen)

331.6

3.2

334.9

303.9

Other operating income

(31.0)

Of which:

300.0

44.7

( 2.9)

41.7

(7.4)

Merchandising

34.3

business

18.8

44.7

2.5

47.3

1.9

Real estate

49.3

business

7.2

200.0

97.7

Third-party

( 56.1)

(2.5)

95.2

financial product

153.8

agency services

2.9

Postal service

74.2

51.6

commissions

100.0

( 14.0)

(22.6)

Banking commissions

88.2

73.8

(0.4)

73.3

Insurance commissions

office network

73.8

Funds to maintain post

0.0

2018

2019

2020

(three months ended June 30)

Results of Operations for the Three Months Ended June 30, 2020

(Billions of yen)

For the three

For the three

Year-on-year

months ended

months ended

change

June 30, 2020

June 30, 2019

Operating income

303.9

334.9

(31.0)

Operating expenses

289.1

313.0

(23.9)

Personnel expenses

209.6

224.2

(14.6)

Other expenses

79.5

88.8

(9.2)

Net operating income

14.7

21.8

(7.1)

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved.

3

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

Financial Results

  • Operating income increased by A$546 million (an increase of 26.2% year-on-year) overall, due to large-scale handling of COVID-19 prevention supplies by the Global Logistics Asia division, despite a decrease in revenue with lower volumes handled in Global Express, due to the impact of COVID-19 and targeted cyber attacks.
  • Other expenses increased significantly with the large-scale handling of COVID-19 prevention supplies, while cost reductions in Global Express were not enough to compensate for the decline in revenue, resulting in a net operating loss (EBIT) of A$116 million (a year-on- year increase in the net operating loss).

Results of Operations for the Three Months

Trends in Net Operating Income (Loss) (EBIT)

Ended June 30, 2020

40

(20)

(80)

(140)

Total EBIT(

)

(Millions of Australian dollars)

(Millions of Australian dollars)

8

(24)

(116)

[Billions of yen]

32

For the three

For the three

Year-on-year

18

19

months ended

months ended

June 30, 2020

June 30, 2019

change

(7)

(4)

(5)

(9)

(23)

Operating

2,627

2,080

+ 546

(6)

(15)

income (revenue)

[185.6]

[160.1]

[+ 25.4]

(101)

Operating

2,743

2,105

+ 637

expenses

[193.8]

[162.0]

[+ 31.7]

Personnel

656

683

(27)

expenses

[46.3]

[52.6]

[(6.2)]

(29)

Other

2,086

1,422

+ 664

expenses

[147.4]

[109.4]

[+ 38.0]

2018

2019

2020

Net operating

(116)

(24)

(91)

(three months ended June 30)

Global Logistics

Global Forwarding

loss (EBIT

[(8.2)]

[(1.9)]

[(6.2)]

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. IFRS16 (Leases) has been adopted from April 1, 2019. Figures for the three months ended June 30, 2020 and 2019 in the above graph and table are calculated on the basis of IFRS16 (Leases).
  2. Figures for the three months ended June 30, 2020 and 2019 in the above graph have been reclassified due to a partial reclassification of businesses between segments from April 1, 2020 (total amounts are unchanged).

4. Figures in square brackets are presented in billions of yen (Average exchange rate for the three months ended June 30, 2020: ¥70.65 to A$1.00 and for the three months ended June 30, 2019: ¥76.94 to A$1.00).

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

Japan Post Co. (Consolidated): Financial Highlights

  • Operating income decreased by ¥18.5 billion year-on-year (a decrease of 2.0% year-on-year, of which ¥11.9 billion was attributable to the effect of exchange rate fluctuations), due to a decrease in income from the postal and domestic logistics business and the post office business, despite an increase in income from the international logistics business due to large-scale handling of COVID-19 prevention supplies.
  • Operating expenses were roughly unchanged year-on-year, with an increase in the international logistics business offsetting decreases in the postal and domestic logistics business and the post office business (a decrease of ¥12.2 billion in operating expenses was attributable to the effect of exchange rate fluctuations). As a result, net operating income decreased by ¥19.7 billion year-on-year (a decrease of 49.2% year-on-year) to ¥20.4 billion, net ordinary income decreased by ¥18.4 billion year-on-year (a decrease of 49.0% year-on-year) to ¥19.2 billion, and net income decreased by ¥18.7 billion year-on-year (a decrease of 52.9% year-on-year) to ¥16.6 billion.

Analysis of Year-on-year Change in Net Income

Results of Operations for the Three Months Ended June 30, 2020

(Billions of yen)

(Billions of yen)

Trends in Net Operating Income

Trends in Net Income

For the three

For the three

2018

2019

2020

2018

2019

2020

Year-on-year

25.1

40.2

20.4

22.9

35.4

16.6

months ended

months ended

change

(three months ended June 30)

(three months ended June 30)

June 30, 2020

June 30, 2019

Net operating

Operating income

925.8

944.3

(18.5)

Net operating

income from

income

postal and

Operating expenses

905.3

904.0

+ 1.2

(Three months

domestic

ended June 30,

logistics

Net operating

Personnel

2019)

business

561.2

587.4

(26.2)

income from

Net operating

expenses

35.4

(6.1)

post office

loss from

Net operating

Other expenses

344.1

316.6

+ 27.4

business

international

(7.1)

logistics

income

Consolidated

(Three months

Net operating income

20.4

40.2

(19.7)

business

adjustments

ended June 30,

(6.2)

and others

2020)

(note)

Net ordinary income

19.2

37.6

(18.4)

1.1

16.6

Extraordinary gains

(0.0)

0.4

(0.5)

(losses)

Income before income

19.1

38.1

(19.0)

taxes

Note: "Consolidated adjustments and others" includes consolidated adjustments, other income (expenses),extraordinary

Net income

16.6

35.4

(18.7)

gains (losses),income taxes and net income attributable to non-controlling interests.

Copyright © 2020 JAPAN POST GROUP. All Rights Reserved.

5

Japan Post Bank (Non-consolidated): Financial Highlights

Results of Operations for the Three Months Ended June 30, 2020

(Billions of yen)

For the three months ended

Year-on-year

June 30, 2020

June 30, 2019

change

Gross operating profit

305.7

364.4

(58.7)

Net interest income

193.3

256.6

(63.2)

Net fees and commissions

31.8

33.1

(1.3)

Net other operating

80.5

74.6

+ 5.8

income

Gains (losses) on foreign

79.8

73.4

+ 6.3

exchanges

Gains (losses) on Japanese

0.6

1.8

(1.2)

government bonds, etc.

General and administrative

252.8

263.0

(10.1)

expenses (Note 1)

Provision for general reserve

-

0.0

(0.0)

for possible loan losses

Net operating profit

52.8

101.3

(48.5)

Non-recurring gains (losses)

(10.9)

4.3

(15.2)

Net ordinary income

41.9

105.7

(63.8)

Net income

33.0

77.7

(44.7)

(Reference) Consolidated Financial Highlights

Overview

  • In the extremely adverse business environment because of factors such as the impact of the spread of COVID-19 and the persistence of a low interest rate environment, gross operating profit (non-consolidated) for the three months ended June 30, 2020 decreased by ¥58.7 billion year-on-year to ¥305.7 billion. Net interest income decreased by ¥63.2 billion year-on-year mainly as a result of a decrease in interest on securities.
    Net fees and commissions decreased by ¥1.3 billion year-on- year. Net other operating income increased by ¥5.8 billion year- on-year.
  • General and administrative expenses (non-consolidated) decreased by ¥10.1 billion year-on-year to ¥252.8 billion.
  • Net operating profit (non-consolidated) decreased by ¥48.5 billion year-on-year to ¥52.8 billion.
  • Net ordinary income (non-consolidated) decreased by ¥63.8 billion year-on-year to ¥41.9 billion.
  • Net income (non-consolidated) decreased by ¥44.7 billion year- on-year to ¥33.0 billion.

Ordinary income

387.6

463.8

(76.2)

Net ordinary income

42.0

105.7

(63.6)

Net income (Note 2)

33.2

77.8

(44.6)

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

June 30, 2020

March 31, 2020

Deposits (Note 3)

187,480.0

183,004.7

+ 4,475.2

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 three months ended

Year-on-year

Jun. 30, 2020

Jun. 30, 2019

change

Net interest income to

193.3

256.6

(63.2)

Interest income

255.5

335.5

(80.0)

Interest income on

96.2

Japanese

117.0

(20.8)

government bonds

Interest income on

137.0

foreign

190.7

(53.7)

securities

Interest expenses

62.1

78.9

(16.7)

Deposit Balance

(Trillions of yen)

190

187.4

179.8

180.9

183.0

180

170

160

Mar. 31, 2018

Mar. 31, 2019

Mar. 31, 2020

June 30, 2020

(as of)

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

Net Fees and Commissions

(Billions of yen)

For the three months ended

Year-on-year

Jun. 30, 2020

Jun. 30, 2019

change

Net fees and commissions

31.8

33.1

(1.3)

relating to

Exchange and settlement

20.9

19.9

+ 0.9

transactions

ATMs

4.8

4.4

+ 0.3

Investment trusts

3.4

6.3

(2.9)

Others

2.6

2.3

+ 0.2

Results of Investment Trusts Sales (Contract Basis)

For the three months ended

Year-on-year

Jun. 30, 2020

Jun. 30, 2019

change

Number of contracts

835

689

+ 145

(thousands)

Sales amount

48.0

246.2

(198.1)

(billions of yen)

As of

Year-on-year

Jun. 30, 2020

Jun. 30, 2019

change

Number of investment trust

1,189

1,129

+ 60

accounts (thousands)

Net assets (billions of yen)

2,374.6

2,420.1

+ 45.5

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

5.1%

Japanese

government

Due from

bonds

24.8%

banks, etc.

24.9%

Total

investment assets

¥215 trillion

Loans

Foreign securities, etc.

3.4%

31.9%

local

Money held in trust

government bonds,

corporate bonds, etc.

(Stocks, JGBs, etc.)

7.4%

2.2%

As of

Composition

As of

Composition

June 30,

March 31,

ratio (%)

ratio (%)

2020

2020

Securities

138,406.2

64.1

135,198.4

65.1

Japanese government

53,579.1

24.8

53,636.1

25.8

bonds

Japanese local

government bonds,

15,992.7

7.4

15,904.8

7.6

corporate bonds,

etc.(Note 1)

Foreign securities, etc.

68,834.3

31.9

65,657.5

31.6

Foreign bonds

23,613.1

10.9

23,706.8

11.4

Investment

45,169.2

20.9

41,901.0

20.1

trusts(Note 2)

Money held in trust

4,808.4

2.2

4,549.7

2.1

(Stocks, JGBs, etc.)

Domestic stocks

2,116.0

0.9

1,859.6

0.8

Loans

7,335.1

3.4

4,961.7

2.3

Due from banks, etc.(Note 3)

53,879.4

24.9

51,485.4

24.8

Short-term investments

11,178.9

5.1

11,324.2

5.4

and others(Note 4)

Total investment assets

215,608.2

100.0

207,519.6

100.0

Change

  • 3,207.7
    (56.9)
    • 87.9
  • 3,176.8
    (93.7)

+3,268.2

    • 258.7
    • 256.3
  • 2,373.3
  • 2,394.0
    (145.3)
  • 8,088.6

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 Three Months Ended June 30, 2020

(Billions of yen, %)

For the three months ended

Year-on-year

June 30, 2020

June 30, 2019

change

Ordinary income

1,696.3

1,818.9

(122.5)

Ordinary expenses

1,626.4

1,762.9

(136.5)

Ordinary profit

69.9

56.0

+ 13.9

Net income

46.7

33.7

+ 12.9

(Reference) Non-consolidated Financial Highlights

Core profit

110.4

90.8

+ 19.5

Net capital gains (losses)

(38.2)

(31.6)

(6.5)

Non-recurring gains (losses)

(2.6)

(3.3)

+ 0.7

Ordinary profit

69.5

55.8

+ 13.7

Annualized premiums from

new policies

6.0

93.5

(87.5)

(individual insurance)

As of

Change

June 30, 2020

March 31, 2020

Annualized premiums from

4,203.8

4,318.6

policies in force

(114.7)

(individual insurance)(Note 1)

Solvency margin ratio

1,121.5

1,070.9

+ 50.6

(consolidated)

Real net assets

12,332.7

12,350.9

(18.2)

(consolidated)

Overview

  • Core profit (non-consolidated) for the three months ended June 30, 2020 increased by ¥19.5 billion year-on-year to ¥110.4 billion, mainly due to a decrease in operating expenses reflecting the impact of continuing to refrain from making proactive sales proposals of Japan Post Insurance products since April 2020.
  • Ordinary profit (consolidated) increased by ¥13.9 billion year-on- year to ¥69.9 billion, mainly due to an increase in core profit, despite an increase in capital losses from losses on money held in trust, etc.
  • Net income (consolidated) increased by ¥12.9 billion year-on-year to ¥46.7 billion, mainly due to an increase in core profit, and we achieved 37.7% of the financial results forecast for the fiscal year ending March 31, 2021.
  • Annualized premiums from new policies for individual insurance and medical care each decreased significantly compared with the same period of 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 ¥2,635.9 billion. Solvency margin ratio (consolidated), an indicator of financial soundness, amounted to 1,121.5% and real net assets (consolidated) amounted to ¥12,332.7 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)

100.0

20.0

600

94.6

93.5

15.0

17.0

16.6

75.0

400

450

420

50.0

10.0

25.0

5.0

200

6.0

20

0.2

0.0

0.0

0

2018

2019

2020

2018

2019

2020

2018

2019

2020

(three months ended June 30)

(three months ended June 30)

(three months ended June 30)

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

5,000.0

4,677.1

40,000

4,318.6

4,203.8

800.0

753.1

715.5

702.6

4,000.0

1,313.2

29,140

1,174.0

1,144.9

600.0

342.1

321.6

317.2

30,000

27,070

26,470

3,000.0

3,363.9

3,144.6

3,058.9

400.0

20,000

11,040

9,900

9,660

2,000.0

410.9

393.8

385.3

18,090

17,160

16,800

1,000.0

200.0

10,000

0.0

0.0

0

Mar. 31, 2019 Mar. 31, 2020 June 30, 2020

Mar. 31, 2019

Mar. 31, 2020

June 30, 2020

Mar. 31, 2019

Mar. 31, 2020

June 30, 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

4.8%

Other

securities

2.7%

Foreign

securities

6.7%

Japanese

stocks 0.5%

Japanese corporate bonds 7.6%

Others

8.3%

Loans

8.1%

Total assets ¥ 70 trillion

Japanese

local

government

bonds 9.1%

Japanese

government

bonds 52.1%

(Billions of yen)

As of

Composition

As of

Composition

Change

Jun. 30, 2020

ratio (%)

Mar. 31, 2020

ratio (%)

Securities

55,801.4

78.8

55,870.5

78.0

(69.1)

Japanese

36,906.6

52.1

36,730.7

51.3

+ 175.9

government bonds

Japanese local

6,473.0

9.1

6,737.3

9.4

(264.3)

government bonds

Japanese

5,379.0

7.6

5,486.3

7.7

(107.3)

corporate bonds

Japanese stocks

325.0

0.5

285.9

0.4

+ 39.0

Foreign securities

4,772.8

6.7

4,687.3

6.5

+ 85.5

Other securities

1,944.7

2.7

1,942.7

2.7

+ 2.0

Money held in trust

3,408.1

4.8

3,056.0

4.3

+ 352.1

Loans

5,708.7

8.1

5,662.7

7.9

+ 45.9

Others

5,883.4

8.3

7,075.4

9.9

(1,191.9)

Total assets

70,801.8

100.0

71,664.7

100.0

(862.9)

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

[Appendix 1] Japan Post Holdings: Organization Chart

As of Jun. 30, 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)

Japan Post Bank Loan 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. 12

[Appendix 2]

Trends in Net Ordinary Income and Net Income

Trends in Net Ordinary Income

Trends in Net Income

(Billions of yen)

(Billions of yen)

300.0

150.0

135.0

210.1

123.5

202.2

200.0

100.0

78.3

77.8

133.2

78.7

106.6

105.7

46.7

100.0

50.0

69.9

34.0

35.4

75.2

42.0

33.7

33.2

56.0

22.9

37.6

16.6

25.1

19.2

0.0

0.0

2018

2019

2020

2018

2019

2020

(three months ended June 30)

(three months ended June 30)

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

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 June 30, 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.

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Japan Post Holdings Co. Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 09:43:06 UTC