Material For IR Meeting
July, 2024
JAPAN POST HOLDINGS
(Security Code : 6178)
Contents
01 | Executive Summary | |
02Appendix
2
6
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 1 |
Executive Summary
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 2 |
Shareholder Return Policy
- Continue share repurchases of substantial quantities and expand debt financing to improve capital efficiency.
- Continue a stable annual dividend of ¥50 per share as well, and keep an interim and year-end dividend to help reduce cost of equity by encouraging a stable share price throughout the year.
- Shareholder return policy
Share repurchase | Continuously perform substantial share repurchases to further enhance shareholder returns and |
improve capital efficiency |
Dividend policy Continue a stable annual dividend of ¥50 per share consisting of an interim and year-end dividend
▌ Returning Capital to Shareholders | ||||||
400 | ||||||
Share Repurchase(Billions of Yen) | ||||||
*1 | 350 | |||||
300 | 350 | |||||
300 | ||||||
200 | 200 | |||||
100 | ||||||
FY2021 | FY2022 | FY2023 | FY2024 | |||
Dividend payout ratio | 37.9% | 41.4% | 62.3% | 55.0% | ||
Total shareholder | 106.3% | 86.5% | 172.3% | 178.9% | ||
return ratio | ||||||
*1 Including 4.5 billion yen acquired in April 2022
*2 Please refer to "Notice Concerning the Determination of Matters Related to the Acquisition of Treasury Stock" released in May 15, 2024 for details
App.
150.0
App.¥500 billion
350.0
Share Repurchase | Dividend Total | |
*3 Dividend total, dividend payout ratio, and total shareholder return ratio in FY 2024 take into account a decrease of dividend payment when performing share repurchase of 350 billion yen
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 3 |
Strengths of the Japan Post Group
- The Group's strengths include its Japan-wide post office network and its overwhelming customer base.
- The Group is pursuing collaboration with local governments and other organizations, aiming to make the post office network a vital base that supports local communities.
- Strength 1 Post office network
Number of post offices per million people
▌ Strength 2 Overwhelming customer base
Number of mail delivery points
Number of post offices
Approx. 24,000
Japan | U.K. | U.S. | |
Number of post offices (1) | 23,521 | 11,635 | 33,493 |
Population (million people) (2) | 124 | 68 | 335 |
Number of post offices per million | 189 | 172 | 100 |
people ((1)/(2)) |
Notes: Number of post offices: Japan as of April 30, 2024, U.K. as of March 31, 2022, U.S. as of September 30, 2023
Population: Figures published by each country; Japan and U.S. as of October 1, 2023, U.K. as of 2022
Approx. 31,000,000 per day
Number of ordinary deposit accounts
Approx. 120,000,000
Number of Japan Post Insurance customers*
Approx. 18,070,000
Number of mail boxes
Approx. 174,000
Number of motorcycles
Approx. 80,000
Note: As of March 31, 2024
- This number represents the sum of policyholders and insured persons (including both individual insurance and individual annuity insurance, and including Postal Life Insurance Policies reinsured by Japan Post Insurance).
- Strength 3 Post offices rooted in the local community
Proportion of prefectures with which
comprehensive partnership agreements have
been signed
95.7 %
Proportion of | Proportion of |
municipalities with | municipalities |
which agreements on | collaborating on |
local partnership have | disaster prevention |
been signed | agreements |
99.7 % | 93.6 % |
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 4 |
plus
Main Targets (ROE and Net Income Targets of 「JP Vision 2025+」)
- ROE decreased in FY2023, partly due to the sale of Japan Post Bank shares and sluggish performance in the postal and logistics segments. Nevertheless, we aim to exceed our cost of equity of about 5% as soon as possible, first striving for an ROE of 4% or higher in FY2025.
Positioning
in 2024-2025
"Transition" to the growth stage
Major targets in | |||||
ROE | 4%*or higher | Consolidated | 570.0 billion yen | ||
FY2025 | |||||
net income | |||||
(After revision) | |||||
ROE and Net Income Targets
* We aim to exceed our cost of equity of approx. 5% as soon as possible.
(Billions of Yen)
618.5
Increasing ROE | |
ROE: 4% or higher | |
Consolidated net income: 570.0 billion yen |
ROE: | Impact of the sales of | |
4.7% | ||
Japan Post Bank shares | ||
520.6 | 4.4% | (89.0%⇒61.5%) |
501.6 |
447.4
431.0
360.0
App.*3
(98.0)
280.0
Consolidated net income
3.0% 268.6
Consolidated net income attributable to Japan Post Holdings *1
*1 | FY2021 | FY2022 | FY2023 | FY2024 *2 | FY2025 | FY2026~ |
Shareholding ratios of Japan Post Bank and Japan Post Insurance in net income attributable to | Japan Post Holdings are calculated based on the figures as of May 2024. | |||||
*2 | Consolidated net income attributable to Japan Post Holdings has been announced as Forecast for the Fiscal Year Ending March 31, 2025 in the financial results for the fiscal | |||||
*3 | year ended March 31, 2024 released on the same day. | |||||
The impact is calculated as the difference between the net income of Japan Post Bank in the fiscal year ended March 31, 2024 (¥356.1 billion) multiplied by the Company's shareholders' equity of 89% | ||||||
and multiplied by the Company's shareholder's equity of 61.5% |
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 5 |
Appendix
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 6 |
Our History
- Modern Postal Service was established in 1871. The 150th Anniversary of the foundation of the Japan Post Group was in 2021.
- The Japan Post Group was privatized and established in 2007. We were listed on the First Section of the Tokyo Stock Exchange in 2015.
The Ministry of Posts and
Telecommunications
-
2012
Reorganized into the current four-company
structure
- 2017
Second sale of Japan Post Holdings
- 2021
Established "JP Vision 2025" Third sale of Japan Post
Hisoka Maejima
1871
Modern postal service established
- 1875
Postal money order service and Postal savings service established
1885 |
Ministry of |
1916
Postal life insurance service established
- 1949
The Ministry of Posts and Telecommunications established
- 2001
Postal Services Agency established
- 2003
Japan Post established
- 2007
The Japan Post Group was established
Japan Post Group established with Japan Post Holdings Co., Ltd., Japan Post Service Co., Ltd., Japan Post Network Co., Ltd., Japan Post Bank Co., Ltd., and Japan Post Insurance Co., Ltd
Japan Post Service and Japan Post Network merged, and Japan Post Co., Ltd. established.
- 2015
Listed on the First Section of the Tokyo Stock Exchange
Holdings
The 150th anniversary of the foundation of the Japan Post Group
- Presently, transition to the Tokyo Stock Exchange Prime Market
Communications |
established |
"Mail Handling" illustrates No.9
A scene of receiving mails and saving money
Azabudai Hills Mori JP Tower
Ichikawa-Minami Post Office
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 7 |
Outline of Japan Post Group
- We are providing integrated services within the Group, such as Postal and Domestics Logistics Business, Banking Business and Life Insurance Business.
- Policy to dispose of shares so that the Company's equity interests in the two financial subsidiaries will be 50% or less during the period of this Medium-term Management Plan.
100%※ | 61.5%※ | 49.8%※ |
Postal and Domestic | Banking Business | Life Insurance Business | ||||
Logistics Business | ||||||
International Logistics | ||||||
Operations | Operations | |||||
Business | ||||||
Consignment | Consignment | |||||
Real Estate Business | ||||||
Post Office | ||||||
Postal Counter Operations | Banking Counter Operations | Insurance Counter Operations | ||||
Merchandise Sales | Investment Trust Sales | Cancer Insurance Sales | ||||
※ the ratio of shareholders' equity |
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 8 |
Capital Allocation and Investments
- Partial sale of Japan Post Bank shares in March 2023, securing proceeds of ¥1.2 trillion.
- Plan to use the proceeds from the second sale of Japan Post Bank shares and the debts, etc. for shareholder returns and growth investments.
Sales of shares in two financial subsidiaries
Proceeds from the sales of shares in two financial subsidiaries
November 2015
Listed on the First Section of the Tokyo Stock Exchange (approx.¥743.0 bil. )
April 2019
Second sale of Japan Post Insurance
(approx.¥415.0 bil.)
June 2021
Share repurchase Equity disposal trust of Japan Post Insurance
(approx.¥350.0 bil.)
JPH | ||
89% | 89% | |
JP | JPB | JPI |
JPH
89% | 64.5% | ||
JP | JPB | JPI | |
JPH | |||
89% | 49.9% | ||
JP | JPB | ||
JPI | |||
Share repurchases
(¥1.68 Tn)
Capital and business Alliance with Aflac (¥0.3 Tn)
Capital and business
Alliance with Rakuten
Group (¥0.15Tn)
Proceeds from
Sale of JPB shares
Shareholder Return
Share repurchases
- ¥300 billion in FY2023 (Aug. 2023-Mar. 2024)
- ¥350 billion at maximum in FY 2024 (May.2024-Mar.2025)
- Continuously perform substantial share repurchases
Growth Investments
Investment for increased |
capacity in our logistics |
business |
March 2023 | JPH | |||
Second sale of Japan Post | 60.6% | 49.9% | ||
Bank(approx. ¥1,200.0 bil.) | JP | JPB | JPI |
※ Japan Post Bank shares : 61.5%(As of May 2024)
※ Japan Post Insurance shares : 49.8%(As of May 2024)
- Policy to dispose of shares so that the Company's equity interests in the two financial subsidiaries will be 50% or less during the period of this Medium-term Management Plan.
(¥1.2 Tn)
Using Debts
Cash on hand
Real estate investment |
Investment in human |
resources |
Strategic IT investment |
Copyright© JAPAN POST HOLDINGS All Rights Reserved. | 9 |
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Disclaimer
Japan Post Holdings Co. Ltd. published this content on 28 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2024 08:28:18 UTC.