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Investor Presentaiton

1. Summary 2. How to Increase Corporate Value 3. Appendix 4. Financial Data How to Increase the Corporate Value: Analysis & Assessment (1) The Bank's PBR is higher than the banking sector simple average, but lower than 1x. To achieve a PBR of 1x or higher, ROE must exceed the "cost of shareholders' equity minus expected earnings growth rate" by means of (1) increasing ROE, (2) controlling the cost of shareholders' equity, and (3) increasing the expected earnings growth rate. PBR Trends*1 1.0 x (Ref.) PBR as of Sep. 30, 2023*² 0.9 x - Simple average of the banking sector :0.43x 0.8 x 0.7 x 0.6 x 0.5 x 0.42 0.41 0.40 0.36 0.4 x 0.35 0.3 x 0.2 x 0.1 x 0.52 PBR Analysis PBR = ROE ☑ PER II = ROE (Cost of Shareholders' Equity - Expected Earnings Growth Rate) Theoretically, ROE ≥ (cost of shareholders' equity - expected earnings growth rate) is required for PBR to be 1x or higher. (Ref.) PBR and ROE Regression Analysis for the Banking Sector (TOPIX)*3 PBR (as of Sep. 30, 2023) 1.0 x 0.9 x 0.8 x 0.7 x JPB 0.6 x 0.5 x 0.4 x 0.3 x 0.2 x 0.0 x End End End End End End 0.1 x Mar. Mar. Mar. Mar. Mar. Sep. 19 20 21 22 23 23 0.0 x 0% *1 Excluding treasury stock. *2 Source: Compiled by Japan Post bank based on financial data from each company (simple average of the banking sector shares included in the TOPIX) JP JAPAN POST BANK BANK Who ch.080.com Simple average -PBR: 0.43x -ROE: 4.29% (Ref.) Weighted average -PBR: 0.65x -ROE: 6.48% R² = 0.81 *3 Source: Compiled by Japan Post bank based on financial data from each. 4% 8% 10% company (The graph shows companies with PBRs of 1x or less). 2% 6% Expected ROE (Based on shareholders' equity and FY23 forecasts) Copyright© JAPAN POST BANK All Rights Reserved. 7
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