Japan Post : Overview of Consolidated Financial Results of Japan Post Co. for the Six Months Ended September 30, 2023

Overview of

Consolidated Financial Results

of Japan Post Co.

for the Six Months Ended September 30, 2023

November 13, 2023

Copyright © 2023 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 September 30, 2023

	Assets
	Current assets
	Cash and deposits			1,761,329
	Notes receivable, operating accounts	284,308
	receivable and contract assets
	Securities			15,000
	Inventories	56,190
	Outstanding amount of banking
			13,803
	business consignment
	Other current assets	51,169
	Reserve for possible loan losses			(968)
	Total current assets	2,180,833
	Non-current assets
	Tangible fixed assets
	Buildings		844,242
	Land	1,291,080
	Right-of-use assets		48,380
	Other tangible fixed assets		359,327
	Total tangible fixed assets		2,543,030
	Intangible assets	72,161
	Investments and other assets
	Other investments and other assets	80,455
	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

1,495,977

278,513

15,000

61,002

46,323

59,083

(876)

1,955,023

893,824

1,356,055

53,765

208,445

2,512,091

88,967

80,206

(3,269)

76,936

2,677,995

4,633,018

1

(Millions of yen)

As of March 31, 2023

As of September 30, 2023

Liabilities

Current liabilities

Notes payable and operating accounts payable

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

business consignment Income taxes payable 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

4,127

205,542

840,000

105,985

197

182,059

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

105,473

147,575

163,378

942

12,532

167,719

810,000

105,857

197

162,976

1,676,653

90,111

10,158

134

2,008,229

90,787

2,199,420

3,876,074

400,000

141,930

211,302

753,233

359

-

(114,379)

96,920

	Total accumulated other comprehensive			(8,060)		(17,098)
	Loss
	Non-controlling interests	20,951	20,810
	Total net assets			849,268		756,944
Total liabilities and net assets		4,873,023	4,633,018

2

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

1. Consolidated Statements of Income Six months ended September 30

	(Millions of yen)
Six months ended	Six months ended
September 30, 2022	September 30, 2023

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

968,229

174,297

69,419

140,409

293,285

55,871

934,024

163,388

62,520

150,028

212,662

57,219

Total operating income	1,701,513	1,579,844
Operating costs	1,553,862	1,492,178
Gross operating income	147,651	87,666
Sales, general and administrative costs	112,620	107,853
Net operating income (loss)	35,030	(20,187)

	Other income
	Interest income	251
	Dividend income			124
	Equity in earnings of affiliates	604
	Foreign exchange gains			1,749
	Subsidy income	795
	Others			2,082
	Total other income	5,607
	Other expenses
	Interest expenses	5,351
	Others		512

628

7

4

273

813

1,106

2,833

5,091

537

Total other expenses	5,864	5,628
Net ordinary income (loss)		34,773	(22,983)

Extraordinary gains
	Gains on sales of fixed assets			5,637
	Compensation for transfer	90
	Insurance claim income			831
	Reversal of losses on transfer of business	-
	Others			23
	Total extraordinary gains	6,583
	Extraordinary losses
	Losses on sales of fixed assets	118
	Losses on disposal of fixed assets		345
	Losses on impairment of fixed assets	452
	Losses on business restructuring		-
	Others	24

2,227

1,323

2,126

1,808

1,310

8,796

241

705

318

475

644

	Total extraordinary losses		941	2,387
Income (loss) before income taxes		40,415	(16,574)
	Income taxes current		14,933	4,267
Income taxes deferred	(542)	639
	Total income taxes		14,391	4,907
Net income (loss)		26,024	(21,481)
	Net loss attributable to non-controlling interests		(363)	(449)
Net income (loss) attributable to Japan Post Co.		26,387	(21,032)

3

(2) Consolidated Statements of Comprehensive Income Six months ended September 30

	(Millions of yen)
Six months ended	Six months ended
September 30, 2022	September 30, 2023

Net income (loss)

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

26,024

232

1,157

(7,260)

(11,511)

3

(17,379)

8,644

8,765

(120)

(21,481)

218

(33)

2,625

(10,990)

(2)

(8,182)

(29,663)

(30,071)

407

4

3. Segment Information

Six months ended September 30, 2022

1. Operating income and segment profit (loss) of reportable segments

					(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	971,080	437,147	293,285	1,701,513	-	1,701,513
third parties
Intersegment operating	4,922	100,741	134	105,798	-	105,798
income
Total	976,002	537,888	293,420	1,807,311	-	1,807,311
Segment profit (loss)	(6,275)	37,198	8,133	39,057	-	39,057

(Note)

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

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

	(Millions of yen)
Items	Amount
Total segment profit (loss) of reportable segments	39,057
Segment profit in other business	-
Eliminations of intersegment transactions	412
Corporate expenses (Note)	(1,049)
Other adjustments	(3,389)
Net operating income on the consolidated statements of	35,030
income

(Note)

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

5

Six months ended September 30, 2023

1. Operating income and segment profit (loss) of reportable segments

						(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	936,824	430,356	212,662	1,579,844		-	1,579,844
third parties
Intersegment operating	4,765	99,672	338	104,775		-	104,775
income
Total	941,589	530,028	213,000	1,684,619		-	1,684,619
Segment profit (loss)	(50,760)	30,471	3,475	(16,813)		-	(16,813)

(Note)

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

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

	(Millions of yen)
Items	Amount
Total segment profit (loss) of reportable segments	(16,813)
Segment profit in other business	-
Eliminations of intersegment transactions	426
Corporate expenses (Note)	(1,451)
Other adjustments	(2,349)
Net operating loss on the consolidated statements of	(20,187)
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 "international logistics business," have been reclassified as part of the "postal and domestic logistics business" beginning from the three months ended June 30, 2023.

The segment information for the six months ended September 30, 2022 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 three months ended June 30, 2023.

The figures presented in segment information for the six months ended September 30, 2022 have been prepared after the retrospective application of this change.

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