Investor Presentaiton

Analysis and Evaluation of Current Situation Japan Post Holdings' PBR While the Tokyo Stock Exchange has indicated that approximately half of the listed companies on the Prime Market have a PBR below 1, the Company needs to improve its PBR as it has a PBR of less than 1 in the past 5 fiscal years. PBR can theoretically be expressed as PBR = ROE / (cost of equity - expected growth rate). Improving PBR requires three things: (1) increasing ROE, (2) reducing cost of equity, and (3) increasing expected growth rate. Assuming an expected growth rate of zero, "ROE ≥ cost of equity" needs to be achieved for PBR to be more than 1. PBR of the Company* Decomposition of PBR (Times) 0.45 0.40 0.35 0.39 0.30 0.37 PBR (Price-to-Book Ratio) = ROE (Return on Equity) PER (Price Earnings Ratio) ROE Cost of equity - Expected growth rate ROA Net Income 0.31 0.29 3 things to improve PBR 0.25 0.27 1 ROE ↑ 0.20 2 Cost of equity Д Х 0.15 0.10 FY18 FY19 FY20 FY21 FY22 *Figures as of the end of each fiscal year are calculated JP JAPAN POST GROUP Expected growth rate Total Assets Financial leverage Total Assets ( = Net Assets + Liabilities ) Net Assets Copyright © JAPAN POST GROUP. All Rights Reserved. 1

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