JAPAN POST GROUP

Annual Report

Year ended March 31, 2023

2023

Introduction

Aiming to realize a "Co-creation Platform" supporting customers and local communities

Our History

1871

1872

1873

1875

1885

1892

1901

1908

1911

1916

1928

1949

1960

1971

1984

1985

2001

Modern postal service was established.

Issuance of postage stamps was commenced.

The nationwide postal service network was completed.

The nationwide uniform postage charge system was implemented.

Issuance of postcards was commenced.

Postal money order service and postal savings service were established.

The Ministry of Communications was established.

The parcel post service was launched.

Red post boxes were introduced.

Current outstanding balance of postal savings: 100 million yen

The express mail service was launched.

Postal life insurance service was established.

National Health Exercise Program (precursor of the Radio Exercise Program) was established.

The Ministry of Posts and Telecommunications was established.

Current outstanding balance of postal savings: 1 trillion yen

Educational endowment insurance and special whole life insurance services were established.

The nationwide online network for postal savings was completed.

Current outstanding balance of postal savings: 100 trillion yen

The Postal Services Agency was established.

A scene of sorting mails by destination and routing for delivery from the "Mail Handling Picture Book"/1884

"" was established as the mark of the Ministry of Communications.

The rst poster at the time when the postal life insurance service was established

A scene of mail delivery/1971

Paperwork at the postal savings counter/1983

2003

2007

2012

2015

2021

Japan Post was established.

The Japan Post Group was established.

Reorganized into the current four-company structure

Listed on the First Section of the Tokyo Stock Exchange

The 150th anniversary of the foundation of the Japan Post Group

JAPAN POST GROUP Annual Report 2023

1

Japan Post Group Management Philosophy

Stressing the security and condence of Japan Post Group network, the Group, as a private corporation, is demonstrating creativity and efciency to the greatest extent possible and will provide customer-oriented services, support the lives of customers in local communities and aim for the happiness of customers and employees. The Group will also pursue managerial transparency on its own, observe rules and contribute to the development of society and the region.

Group Management Policy

1. We will duly consider our customers' lives, exercise our creativity and provide through our nationwide network a selection of products and services needed by customers in every stage of their lives.

2. We will establish effective corporate governance and compliance programs, including internal audits and internal controls.

3. We will maintain the transparency of the Group's operations through the timely and proper disclosure of information, the appropriate use of intra-group transactions and other activities.

4. We aim for the Group's sustainable growth and a mid-to-long term improvement in our corporate value.

5. We will create opportunities for all employees, business partners and the community to mutually cooperate and for each and every employee to grow.

Japan Post Group Charter of Corporate Conduct

1. Earn the trust of customers

  • We earn the trust of customers by adopting their perspective and meeting their expectations.
  • We protect and manage information strictly so that customers can use our services with peace of mind.
  • We fulll our responsibility to explain our operations by conducting highly transparent business operations and disclosing information in a fair manner.
  1. Observe ethical standards
  2. Place priority on coexistence
  3. Create value
  • We continue to conduct business activities with sincerity by complying with laws, regulations, social standards and internal rules.
  • We stand rmly against antisocial forces and organizations that threaten the order and safety of civil society.
  • We maintain workplace discipline by clearly dening responsibilities and authority and fairly evaluating performance and results.
  • We actively promote environmental conservation and make a signicant contribution to society through business activities.
  • We aim for sustainable coexistence by placing importance on maintaining dialogues with diverse stakeholders.
  • We respect human rights and provide safe and pleasant workplaces.
  • We will create new convenience for customers and provide them with high-quality services.
  • We will create stable value by providing universal services in our three core businesses through the Japan Post Group network.
  • We will utilize teamwork and create corporate value for the Japan Post Group by promoting mutual understanding and cooperation among employees and encouraging each and every employee to fulll their roles and responsibilities.

5. Be a source of change

  • We will apply technological innovation and continually make innovative changes internally to provide stable services to our customers.
  • We exercise our creativity from a broad viewpoint and lofty perspective to promote the Group's development.
  • We aggressively take on the challenge of conducting global business activities.

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CONTENTS

1.

Introduction

32. Initiatives to Realize a "Co-creation

Platform"

79. Japan Post Group Corporate Governance

Top Commitment

4. Message from the President

12. Top Messages from Each Company

Value Creation Strategy

14. Financial and Non-Financial Highlights

16. Medium-Term Management Plan "JP Vision 2025"

18. Initiatives for "JP Vision 2025"

  1. Capital Strategy
  2. Developing Communications with Customers to Further Enhance the Japan Post Group's Brand Image
  3. Promotion of Group DX

28. DX Initiatives of the Group Companies

30. Real Estate Business

34. Initiatives toward the Creation of Value by Group Companies

40. Initiatives toward Enhancing the Sophistication of Crisis Management

42. Sports & Communications

44. Structure of the Japan Post Group

46. Financial Results, Strengths, and Challenges of Each Group Company

Sustainability

50. Sustainability Management

68. Human Resource Strategy

Corporate Governance

76. Message from an Outside Director

78. Initiatives toward Enhancing Corporate Governance

90. Japan Post Group Risk Management

92. Japan Post Group Compliance Framework

  1. Japan Post Group IT Governance
  2. Japan Post Group Cyber Security Measures
  3. Japan Post Group Internal Audit System
  4. Initiatives for Transportation Safety
  5. Dialogue with Stakeholders

Data Compilation

101. Data Compilation

Company Outline

Company name:

JAPAN POST HOLDINGS Co., Ltd.

Head ofce:

3-1, Otemachi 2-chome,Chiyoda-ku, Tokyo 100-8791, Japan

Editorial Policy

This Annual Report (hereinafter, "this Report") is created from the dual perspectives of providing nancial and non-nancial information pertaining to an overview of the Japan Post Group as well as its business strategies and management issues for the purpose of promoting an understanding among stakeholders of the Group's initiatives toward sustainable value creation.

This Report has been combined with the Disclosure Report.

• Reference guideline: International Integrated Reporting Framework, International Integrated Reporting Council (IIRC)

Date of establishment:

January 23, 2006

Paid-in capital:

¥3,500 billion

Securities code:

6178

Total number of shareholders:

741,798

(As of March 31, 2023)

Date of Publication: September 2023

Subject of Reporting

Reporting period: April 2022-March 2023 (Part of this Report includes information after this period.)

Scope of report: Japan Post Holdings Co., Ltd. and its subsidiaries and afliated companies

Others: In addition to this Report, please refer to the Integrated Reports of Japan Post Bank Co., Ltd. and Japan Post Insurance Co., Ltd.

Please also refer to the most recent materials disclosed by Japan Post Holdings Co., Ltd., including the Notice of Ordinary General Meeting of Shareholders (Business Report, etc.), Annual Securities Report, and Summary Report of Financial Results, for detailed information on the state of business, nancial conditions, and business results of Japan Post Holdings Co., Ltd. and each company of the Japan Post Group.

Disclaimer with Respect to Forward-Looking Statements

This Report is a translation of the Disclosure Document (the written explanation in Japanese of the business and nancial conditions of Japan Post Holdings Co., Ltd. and the Japan Post Group) that was prepared pursuant to Article 52-29 of the Banking Act. This Report is not prepared for the purpose of soliciting any shares or other securities of Japan Post Holdings and its subsidiaries. This Report contains

Publications and Their Positioning

Reports

Websites

forward-looking statements regarding future performance and other matters of the Japan Post Group and each company of the Japan Post Group.

These forward-looking statements do not constitute guarantees of future performance and are subject to risks and uncertainties. Therefore, these statements are subject to the impact of a wide range of future risk factors that include changes in preconditions concerning the business environment, economic circumstances and economic trends, changes in laws and regulations, the occurrence of large-scale disasters, changes in the value of assets held, reputation and rumor risk, and other risks. Accordingly, it should be noted that actual business results and other matters could differ from the details contained in this Report.

Figures and percentages shown in this Report have been rounded off, except for nancial numbers in the accounting statements, etc., that have been truncated without rounding. As a consequence, sums of gures may not match the totals presented. Figures and percentages, with exceptions as specically indicated, are as of March 31, 2023.

• Summary Report of

Financial Results

Financial

Information

• Annual Securities Report

• Shareholders' Report

• Notice of Ordinary General

Meeting of Shareholders

(Business Report, etc.)

• Integrated Report

• Corporate Governance Report

Non-Financial

• Sustainability Report

Information

• SDGs Book

  • For shareholders and investors (IR website) https://www.japanpost.jp/en/ir/
  • Group governance
    (Corporate governance website) https://www.japanpost.jp/en/group/ governance/
  • Sustainability website https://www.japanpost.jp/en/ sustainability/

JAPAN POST GROUP Annual Report 2023

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Disclaimer

Japan Post Holdings Co. Ltd. published this content on 26 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2023 10:32:14 UTC.