Japan Post : Notice Regarding Revisions to the Consolidated Financial Results Forecast and Dividends Forecast for the Fiscal Year Ending March 31, 2021

UNOFFICIAL TRANSLATION

Although the Company pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy.

	November 13, 2020
Company name:	Japan Post Holdings Co., Ltd.
Representative:	MASUDA Hiroya
	Director and Representative Executive Officer,
	President & CEO
	(Code number: 6178, First Section of the
	Tokyo Stock Exchange)
Contact:	IR Office (Phone: [phone])

Notice Regarding Revisions to the Consolidated Financial Results Forecast and

Dividends Forecast for the Fiscal Year Ending March 31, 2021

In light of recent trends in financial results, JAPAN POST HOLDINGS Co., Ltd. (the "Company") has revised its consolidated financial results forecast and dividends forecast, which were announced on May 15, 2020, as follows.

1. Revision to the Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021

(1) Details of the revision to the consolidated financial results forecast figures

Consolidated financial results forecast for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)

			Net income
	Ordinary	Net ordinary	attributable to	Net income
	income	income	Japan Post	per share
			Holdings
Previously announced	Million yen	Million yen	Million yen	Yen
forecast (A)	11,290,000	520,000	280,000	69.25
Revised forecast (B)	11,360,000	620,000	340,000	84.09
Change (B-A)	70,000	100,000	60,000	-
Change rate (%)	0.6	19.2	21.4	-
(Reference) Results of the
previous fiscal year (fiscal	11,950,185	864,457	483,733	119.64
year ended March 31, 2020)

1

(2) Reason for the revision

The Company has revised its full year financial results forecast upward, mainly due to expected increases in fund balance, etc. due to lower-than-planned special distributions not recognized as income, among distributions from investment trusts held as securities by the Company's consolidated subsidiary, JAPAN POST BANK Co., Ltd., owing to narrowing credit spreads overseas.

2. Revision to the Year-end Dividend Forecast

(1) Details of the revision to the dividends forecast

		Dividend per share (yen)
	2nd quarter-end		Year-end	Total
Previously announced		-		-
forecast
(May 15, 2020）
Revised forecast		¥50		¥50
Dividends for the current	¥0
fiscal year
Dividends for the
previous fiscal year	¥25		¥25		¥50
(fiscal year ended March
31, 2020)

(Note) The year-end dividend for the fiscal year ending March 31, 2021 (previously announced forecast) was left undecided at the time of the previous announcement, as the outlook for the business environment in which the Japan Post Group operates was unclear at the time, and it was possible for the Company's results to change significantly depending on future developments. The Company had decided to consider the payment of a year-end dividend while closely monitoring results going forward.

(2) Reason for the revision

The Company considers returning profits to shareholders to be an important management measure and sets out its basic policy to continuously provide stable return to shareholders in accordance with the business results.

With regard to dividends from retained earnings, the Company aims to provide stable dividends per share in order to ensure steady profit returns to shareholders while paying attention to capital efficiency and maintaining required internal reserves.

In view of the adverse business environment, primarily due to the impact of COVID-19, the Company was to decide on dividends for the fiscal year ending March 31, 2021 based on the level of income and the amount available for distribution. Because certain prospects for results going forward have been established, the Company has revised its year-end dividend forecast for the fiscal year ending March 31, 2021, which had been left undecided

2

at the time of the previous announcement, to ¥50 per share in accordance with the above policy, comprehensively taking into account factors including the revised financial results forecast and dividend stability.

The source of dividends is expected to be from capital surplus.

In accordance with Article 11 of the Act on Japan Post Holdings Co., Ltd., resolutions regarding payment of dividends from surplus or other appropriation of surplus of the Company shall not be effective without approval of the Minister of Internal Affairs and Communications.

* Explanation on appropriate use of financial results forecast

Forecasts and other forward-looking statements presented in this document are based on information that the Company is aware of 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 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.

3