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Investor Presentaiton

Analysis and Evaluation of Current Situation/Initiatives for Improvement Japan Post Holdings' ROE and Cost of Equity ➤ Using CAPM based on the most recent data, the cost of equity is estimated to be approx. 5%. The Company's ROE is below the cost of equity. We aim for a level of ROE that exceeds the cost of equity. Trends of the Company's ROE (* 1,2) and the cost of equity (%) 6.0 5.5 Cost of equity: Approx. 5% 5.0 4.5 4.5 4.5 4.7 4.4 4.0 3.9 3.5 3.0 2.5 In FY2023, ROE declined due to a decline in consolidated net income from the previous fiscal year resulting from a decrease in the shareholding ratio of Japan Post Bank shares, a group company (from approx. 89% to approx. 60%). 2.7 2.0 FY18 FY19 FY20 FY21 FY22 FY23 (Forecast) Increasing ROE Specific ROE and other targets, timing for achieving them, details of initiatives, etc. will be discussed while reviewing the Medium- term Management Plan during the current fiscal year, and will be disclosed in FY2024. FY24... 1 ROE on a shareholders' equity basis not affected by net unrealized gains (losses) on available-for-sale securities, taking into consideration our banking business characteristics X2 Calculated by dividing net income attributable to Japan Post Holdings by the average shareholders' equity during the period (excluding non-controlling interests and net unrealized gains (losses) on available-for-sale securities from net assets) and rounding to the first decimal place JP JAPAN POST GROUP Copyright © JAPAN POST GROUP. All Rights Reserved. 2
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