Japan Post : Overview of Consolidated Financial Results of Japan Post Co. for the Fiscal Year Ended Marh 31, 2024

Overview of

Consolidated Financial Results

of Japan Post Co.

for the Fiscal Year Ended March 31, 2024

May 15, 2024

Copyright © 2024 JAPAN POST GROUP. All Rights Reserved.

Table of Contents

1.	Consolidated Balance Sheets	1
2.	Consolidated Statements of Income and Consolidated Statements of
	Comprehensive Income	3
	(1)	Consolidated Statements of Income	3
	(2)	Consolidated Statements of Comprehensive Income	4
3.	Segment Information	5

1. Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2023

As of March 31, 2024

	Assets
	Current assets
	Cash and deposits			1,761,329
	Notes receivable and operating	275,721
	accounts receivable
	Contract assets			8,587
	Securities	15,000
	Inventories			56,190
	Prepaid expenses	9,576
	Other accounts receivable			15,508
	Outstanding amount of banking	13,803
	business consignment
	Other current assets			26,084
	Reserve for possible loan losses	(968)
	Total current assets			2,180,833
	Non-current assets
	Tangible fixed assets
	Buildings	844,242
	Structures			29,640
	Machinery and equipment	75,624
	Vehicles			15,946
	Tools and fixtures	19,100
	Land			1,291,080
	Right-of-use assets	48,380
	Construction in progress			219,015
	Total tangible fixed assets	2,543,030
	Intangible assets
	Leasehold right	1,652
	Transferable development right			14,077
	Software	17,515
	Other intangible assets			38,914
	Total intangible assets	72,161
	Investments and other assets
	Investment securities	17,820
	Claims provable in bankruptcy			3,456
	Long-term prepaid expenses	7,215
	Asset for retirement benefits			1,353
	Other investments and other assets	50,608
	Reserve for possible loan losses			(3,456)
	Total investments and other assets	76,998
	Total non-current assets			2,692,190
	Total assets	4,873,023

1,546,784

335,096

11,303

15,000

36,050

12,218

19,003

38,655

33,865

(1,307)

2,046,669

945,138

30,983

72,953

20,243

28,219

1,352,676

56,522

20,990

2,527,727

1,656

14,077

70,052

9,939

95,726

19,012

2,072

14,166

1,905

49,555

(2,076)

84,636

2,708,091

4,754,760

1

(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Liabilities

Current liabilities

Notes payable and operating accounts payable

Short-term borrowings Other accounts payable Outstanding amount of life insurance

business consignment Accrued expenses Income taxes payable Consumption taxes payable Contract liabilities Deposits received

Fund deposits for post offices

Reserve for bonuses

Reserve for losses on rebuilding of branches

Other current liabilities

Total current liabilities

Long-term liabilities

Lease obligations

Deferred tax liabilities

Reserve for management board benefit trust

Liability for retirement benefits

Other long-term liabilities

Total long-term liabilities

Total liabilities

Net assets

Shareholders' equity

Capital stock

Capital surplus

Retained earnings

Total shareholders' equity

Accumulated other comprehensive income

Net unrealized gains (losses) on available-for-sale securities

Net deferred gains (losses) on hedges Foreign currency translation

adjustments Accumulated adjustments for

retirement benefits

104,703

144,506

260,965

1,149

64,230

4,127

18,785

51,243

205,542

840,000

105,985

197

47,799

1,849,237

86,598

9,488

153

1,988,082

90,194

2,174,517

4,023,754

400,000

141,930

294,446

836,377

143

33

(116,148)

107,911

121,669

151,539

327,405

952

42,593

14,832

6,257

45,167

182,756

810,000

104,721

-

44,640

1,852,538

91,269

9,548

218

1,935,259

94,376

2,130,672

3,983,210

400,000

141,930

239,605

781,536

348

-

(114,313)

79,636

	Total accumulated other comprehensive	(8,060)	(34,328)
	loss
	Non-controlling interests		20,951	24,341
	Total net assets	849,268	771,550
	Total liabilities and net assets		4,873,023	4,754,760

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2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

1. Consolidated Statements of Income

	(Millions of yen)
Fiscal year ended	Fiscal year ended
March 31, 2023	March 31, 2024

Operating income

Postal service business income Commissions for banking business

consignment

Commissions for life insurance business consignment

Funds to maintain post office network International logistics business income Other operating income

2,040,988

340,055

134,846

280,818

538,897

115,925

1,960,391

316,113

125,605

300,057

448,216

173,360

Total operating income	3,451,530	3,323,743
Operating costs	3,134,368	3,091,560
Gross operating income	317,162	232,182
Sales, general and administrative costs	233,361	225,813
Net operating income	83,801	6,369

	Other income
	Interest income	726
	Equity in earnings of affiliates			1,194
	Foreign exchange gains	2,681
	Subsidy income			1,664
	Others	3,487
	Total other income			9,753
Other expenses
	Interest expenses			12,704
	Losses on foreign exchanges	-
	Others			1,208
	Total other expenses	13,913
	Net ordinary income			79,641
Extraordinary gains
	Gains on sales of fixed assets			11,470
	Gains on exchange of fixed assets	2,975
	Insurance claim income			735
	Reversal of losses on transfer of business	305
	Receipt of contribution for special bonus
			-
	payments
	Others	857
	Total extraordinary gains			16,344
Extraordinary losses
	Losses on sales of fixed assets			231
	Losses on disposal of fixed assets	2,486
	Losses on impairment of fixed assets			1,032
	Losses on business restructuring	1,769
	Extra payments for early retirements			1,843
	Litigation expenses	969
	Others			557

1,215

637

-

3,696

2,197

7,747

9,998

891

1,030

11,920

2,196

4,948

-

2,243

2,525

5,040

3,915

18,672

422

2,367

572

1,664

-

-

725

	Total extraordinary losses	8,888	5,753
	Income before income taxes		87,097	15,115
Income taxes current	28,132	8,282
	Income taxes deferred		(1,926)	(455)
Total income taxes	26,206	7,826
	Net income		60,891	7,289
Net income (loss) attributable to non-controlling	(1,199)	18
	interests

Net income attributable to Japan Post Co.

62,090

7,270

3

(2) Consolidated Statements of Comprehensive Income

	(Millions of yen)
Fiscal year ended	Fiscal year ended
March 31, 2023	March 31, 2024

Net income

Other comprehensive loss

Net unrealized gains (losses) on available-for- sale securities

Net deferred gains (losses) on hedges Foreign currency translation adjustments Adjustments for retirement benefits

Share of other comprehensive income (loss) of affiliates

Total other comprehensive loss

Comprehensive income (loss)

Total comprehensive income (loss) attributable to: Japan Post Co.

Non-controlling interests

60,891

109

246

(4,039)

(26,076)

6

(29,755)

31,135

32,669

(1,533)

7,289

208

(33)

3,149

(28,275)

(2)

(24,954)

(17,664)

(18,997)

1,332

4

3. Segment Information

1. Operating income and segment profit (loss) of reportable segments
   Fiscal year ended March 31, 2023

					(Millions of yen)
		Reportable segments
	Postal and		International		Other	Total
	domestic	Post office	logistics	Subtotal
	logistics	business	business
	business		(Note)
Operating income
Operating income from	2,046,675	865,957	538,897	3,451,530	-	3,451,530
third parties
Intersegment operating	9,762	208,083	300	218,146	-	218,146
income
Total	2,056,437	1,074,041	539,198	3,669,677	-	3,669,677
Segment profit	33,007	49,311	10,476	92,796	-	92,796
(Note)

The amount presented in segment profit for the international logistics business segment is EBIT.

Fiscal year ended March 31, 2024

					(Millions of yen)
		Reportable segments
	Postal and		International		Other	Total
	domestic	Post office	logistics	Subtotal
	logistics	business	business
	business		(Note)
Operating income
Operating income from	1,965,972	909,555	448,216	3,323,743	-	3,323,743
third parties
Intersegment operating	9,598	203,374	598	213,571	-	213,571
income
Total	1,975,570	1,112,929	448,814	3,537,315	-	3,537,315
Segment profit (loss)	(68,623)	72,962	9,582	13,920	-	13,920

(Note)

The amount presented in segment profit for the international logistics business segment is EBIT.

1. Reconciliation between total segment profit (loss) of reportable segments and net operating income on the consolidated statements of income

		(Millions of yen)
Items	Fiscal year ended	Fiscal year ended
March 31, 2023	March 31, 2024
Total segment profit of reportable segments	92,796	13,920
Segment profit in other business	-	-
Eliminations of intersegment transactions	824	826
Corporate expenses (Note)	(2,501)	(3,020)
Other adjustments	(7,317)	(5,356)
Net operating income on the consolidated statements of	83,801	6,369
income

(Note)

"Corporate expenses" consists mainly of general and administrative costs which are not attributable to any reportable segments.

(3) Changes in reportable segments

(Changes in classification of reportable segments)

Pursuant to a partial change in performance management classifications within the Group, the businesses conducted by JP Logistics Group Co., Ltd. and JP Logistics Co., Ltd., which were previously included in the

5

"international logistics business," have been reclassified as part of the "postal and domestic logistics business" beginning from the fiscal year ended March 31, 2024.

The segment information for the fiscal year ended March 31, 2023, was presented based on the new classification.

(Change in Accounting Treatment from the International Financial Reporting Standards to Japanese Accounting Standards)

JP Logistics Group Co., Ltd. and JP Logistics Co., Ltd., which were previously included in the "international logistics business" and therefore applied the International Financial Reporting Standards, have adopted Japanese Accounting Standards from the beginning of the fiscal year ended March 31, 2024.

The figures presented in segment information for the fiscal year ended March 31, 2023 have been prepared after the retrospective application of this change.

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