Japan Post : Financial Highlights for the Three Months Ended June 30, 2022

Financial Highlights

for the Three Months Ended June 30, 2022

August 10, 2022

Japan Post Holdings: Financial Highlights

 Results of Operations for the Three Months Ended June 30, 2022		(Billions of yen)
		Japan Post Holdings
		Japan Post Co.	Japan Post Bank	Japan Post Insurance
		(Consolidated)
		(Consolidated)	(Consolidated)	(Consolidated)
	Ordinary income	2,718.2	856.3	448.8	1,608.9
	Year-on-year	(145.8)	(47.6)	(56.7)	(56.1)
	(for the three months ended
	June 30, 2021)	(5.1)%	(5.3)%	(11.2)%	(3.4)%
	Change
Net ordinary income	162.5	27.3	120.4	13.4
	Year-on-year	(125.8)	(7.2)	(42.2)	(78.6)
	(for the three months ended
	June 30, 2021)	(43.6)%	(20.9)%	(25.9)%	(85.4)%
	Change
	Net income	118.5	29.7	88.8	11.6
	Year-on-year	(41.1)	(2.9)	(32.0)	(29.5)
	(for the three months ended
	June 30, 2021)	(25.8)%	(9.0)%	(26.4)%	(71.8)%
	Change

• Forecast for the Fiscal Year Ending March 31, 2023

Net ordinary income	700.0	95.0	445.0	160.0
	[percentage achievement]	[23.2%]	[28.8%]	[27.0%]	[8.4%]
	Net income	400.0	60.0	320.0	71.0
	[percentage achievement]	[29.6%]	[49.6%]	[27.7%]	[16.4%]

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 2.5% in total year-on-year. Mail decreased by 2.5% and Yu-Mail decreased by 1.7%. Yu-Pack(note1) decreased by 5.7% year-on-year (including a decline of 7.3% in Yu-Packet), due mainly to the severe competitive environment.
• Operating income decreased by ¥13.5 billion year-on-year (a decrease of 2.8% year-on-year) due mainly to a decrease in volume of items handled.
• Net operating income decreased by ¥16.3 billion year-on-year (a decrease of 80.5% year-on-year), partly as a result of an increase in operating expenses of ¥2.8 billion year-on-year (an increase of 0.6% year-on-year), despite cost control initiatives and other measures.

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

					(Billions of yen)
			〔Trends in Net Operating Income〕
Net operating			2020	2021	2022
		15.4	20.3	3.9
income	Decrease in
(Three months			(three months ended June 30)
ended June	operating
30, 2021)	income

20.3(13.5)

Other expenses (+0.6)

Collection,

transport

Net operating

Personnel

and delivery

income

expenses

outsourcing

Miscellaneous

（Three months

+2.1

expenses

expenses

ended June

(1.5)

+2.1

30, 2022)

3.9

							Facility expenses	＋ 2.0
Parcels	(7.2)
(Yu-Pack(note1) and Yu-Mail)
					Domestic collection,
Sales revenue of
(3.8)					Delivery outsourcing	(0.9)
Postage Stamps and Postcards					expenses
Standard mail	(3.3)					International mails	(0.5)
						delivery expenses
International mails	(3.1)
Revenue from new subsidiaries (note2)	＋ 6.4		Salaries and allowances, etc.	＋ 1.5

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

2. Revenue from new subsidiaries included in the scope of consolidation from the three months ended September 30, 2021.

Trends in Volume of Items Handled

5,000					(Volume of items handled in millions)
	4,582	( 0.7 %)	4,549	( 2.5 %)	4,433
	286	(13.8 %)	247
	( 5.7 %)	233
					Yu-Pack(note1)
4,000	781	＋2.6 %	801
( 1.7 %)	787
						Yu-Mail
3,000	3,515	(0.4 %)		( 2.5 %)
	3,501	3,414	Mail
0	2020		2021		2022	(three months ended June 30)

Results of Operations for the Three Months Ended June 30, 2022

				(Billions of yen)
			For the three
		Fmonthsor the	Year-on-year
		three ended	months ended
		change
		June 30, 2022	June 30, 2021
Operating income	475.0	488.5	(13.5)
Operating expenses	471.0	468.1	+ 2.8
	Personnel expenses	302.8	300.6	+ 2.1
	Other expenses	168.1	167.5	+ 0.6
Net operating income	3.9	20.3	(16.3)

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

Financial Results

• Operating income decreased by ¥16.5 billion year-on-year (a decrease of 5.8% year-on-year), with a continuing decrease in insurance commissions and banking commissions.
• Net operating income increased by ¥9.4 billion year-on-year (an increase of 82.9% year-on-year), as operating expenses fell by ¥26.0 billion year-on-year (a decrease of 9.5% year-on-year), primarily as a result of a significant decrease in personnel expenses associated with the transition to the Japan Post Insurance's new sales system from April 2022.

Analysis of Year-on-year Change in Net Operating Income		Trends in the Earnings Structure
〔Trends in Net Operating Income〕	(Billions of yen)		(Billions of yen)

2020	2021	2022							303.9					Other operating income
										Of which:
14.7	11.3	20.7								(17.6)	286.2
			Net operating	300.0		(16.5)	269.6	Merchandising	7.0
	(three months ended June 30)			34.3	(11.8)	22.5	business
				income		＋3.8	26.4	Real estate
			Personnel	Other	(Three months		49.3	(0.6)	48.7	(0.5)	business	6.8
					ended June		48.2	Third-party
			expenses	expenses			200.0
			(27.8)	+1.8			30, 2022)	95.2		93.5			financial product
Net operating					20.7			( 1.6)	(3.7)	89.7	agency services	1.1
income													Postal service
														commissions
(Three months	Commissions								100.0	51.6	( 2.9)	48.6	(13.6)	34.9	Banking commissions
ended June	for business									Insurance commissions
30, 2021)	consignment									73.3		72.7		70.2
								( 0.6)	(2.5)	Funds to maintain post
11.3	(17.9)
							0.0						office network
									2020		2021		2022 (three months ended June 30)
										Results of Operations for the Three Months Ended June 30, 2022
	Funds to		Other operating									For the three	For the three	(Billions of yen)
										Year-on-year
	maintain post	income
	Operating								months ended	months ended
	office network	+3.8				＋3.0				change
	(2.5)		outsourcing						June 30, 2022	June 30, 2021
			expenses
							(0.8)	Operating income		269.6		286.2	(16.5)
				Depreciation
				and amotization

	Insurance	(13.6)										Operating expenses	248.8	274.8	(26.0)
		Revenue from new	＋ 4.1		Salaries and	(21.8)
	commissions			subsidiaries (note)		allowances, etc.
	Banking			Merchandising business	(0.1)
(3.7)			Legal welfare	(3.6)			Personnel expenses	180.5	208.4	(27.8)
	commissions
			Real estate business	(0.8)		expenses
	Postal service	(0.5)
						Other expenses	68.2	66.4	+ 1.8
	commissions
			Third-party financial	(0.8)
				product agency services
										Net operating income	20.7	11.3	+ 9.4
Note: Revenue from new subsidiaries included in the scope of consolidation from the three months ended September 30, 2021.
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Japan Post Co. (Consolidated) [International Logistics Business]:

Financial Results

• Operating income decreased by A$397 million year-on-year (a decrease of 18.5% year-on-year), due to the impact of a reduction in income associated with the transfer of the Global Express business in August 2021, despite a continuing increase in the Global Forwarding business due to greater cargo demand from the previous fiscal year.
• Operating expenses also decreased due to the reduction in expenses related to the Global Express business, but net operating income (EBIT) declined by A$33 million year-on-year (a decrease of 42.8% year-on-year).

Trends in Net Operating Income (Loss) (EBIT)

Total EBIT(		)		(Millions of Australian dollars)
(116)	77	44
100

		26	12
50
	20
	53
	18	36
0	Note 4
(5)
(6)	(21)

1. (101)

(100)

(28)
(150)	2021	2022
2020
			(three months ended June 30)
■ Global Logistics	■ Global Forwarding	■ Global Express ■ Corporate/Other

Results of Operations for the Three Months

Ended June 30, 2022

(Millions of Australian dollars) [Billions of yen]

		For the three	For the three	Year-on-year
		months ended	months ended
		change
		June 30, 2022	June 30, 2021
Operating income	1,750	2,148	(397)
(revenue)	[162.0]	[181.1]	[(19.0)]
Operating	1,706	2,071	(364)
expenses	[157.9]	[174.6]	[(16.6)]
	Personnel	401	597	(196)
	expenses	[37.1]	[50.3]	[(13.2)]
	Other	1,304	1,473	(168)
	expenses	[120.8]	[124.2]	[(3.4)]
		44	77	(33)
Net operating
income (EBIT）	[4.0]	[6.5]	[(2.4)]

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 the fiscal year ended March 31, 2022 and 2021 in the above graph have been reclassified due to a partial reclassification of businesses between segments for each fiscal year (total amounts are unchanged).
2. Figures in square brackets are presented in billions of yen (Average exchange rate for the three months ended June 30, 2022: ¥92.60 to A$1.00 and for the three months ended June 30, 2021: ¥84.32 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 three months ended June 30, 2021 (the effect of this is offset through Corporate/Other).

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