[Company analysis] Japan Post Holdings Co., Ltd. (日本郵政)

「Japan Post Holdings Co., Ltd. (日本郵政)」provides postal delivery, banking, insurance service to general customers. It is a special company established as a holding company of the "Japan Post Group", so it owns「Japan Post(日本郵便)」,「Japan Post Bank(ゆうちょ銀行)」,「Japan Post Insurance(かんぽ生命保険)」,「Japan Post Staff(日本郵政スタッフ)」and「Japan Post Information Technology(日本郵政インフォメーションテクノロジー)」. By the way, the name is similar to「Nippon Yusen(日本郵船)」, but there is no connection. The number of consolidated employees is approximately 245,922.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Japan Post Holdings Co., Ltd.
Company name (Japanese)	日本郵政
Date of establishment	Monday, January 23, 2006
Headquarters location	〒100-8791 東京都千代田区大手町二丁目3番1号
Capital	3,500,000
Consolidated sales	12,774,999
Consolidated operating profit	830,696
Consolidated total assets	286,170,709
Consolidated capital	14,788,654
Capital adequacy ratio	5.2%
Consolidated number of employees	245,922

 

 

 

2. Summary and Features

 
Before being privatized,「Japan Post」offered banking and simple insurance in addition to basic postal delivery. Due to the characteristics of the post office, it is possible to secure funds relatively easily by utilizing the branch network spread all over the Japan. In the past, the Japanese government diverted the funds to carry out large-scale housing projects and road construction projects.

 

However, of course, the profitability was deteriorated. And it obviously hindered fair competition with other postal companies, financial companies, and insurance companies. As a result, the existing「Japan Post」 was dissolved on October 1, 2007. After being privatized, it reborn as a holding company, and the existing business of「Japan Post」 became distributed to「Japan Post」,「Japan Post Bank」, and「Japan Post Insurance」.

 

Even though its privatization was completed, the position of「Japan Post」remains stubborn. Most of all, this company has the largest scale in the postal industry and has a strong sense of trust, and having 24,000 stores nationwide is a very good condition for consumer banking and insurance business. And this is directly reflected in the number of customer for Insurance service and the number of savings accounts.

 

However, there are several weakness. Even though this company became privatized, the business activities of「Japan Post Group」is restricted by the laws and regulations. The postal service, which is the core business of 「Japan Post」has a very strong public nature because it has to cover the whole of Japan. In other words, this company has the dual goal of contributing to the benefit of society while aiming to earn profit.

 

 

 

3. Major Business

 

■ Japan Post
They use the post offices and delivery networks throughout Japan to carry out postal delivery services.

■ Japan Post Bank
Utilizing the post office network all over Japan, of course, they have the highest number of stores and around 120 million ordinary savings accounts.

■ Japan Post Insurance
Utilizing the post office network all over Japan, they acheived the highest number of stores and around 27.99 million customers.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		13,326,534	12,920,375	12,774,999
Consolidated operating profit		795,237	916,144	830,696
Consolidated total assets		293,162,545	290,640,154	286,170,709
Consolidated net assets		14,954,581	14,743,234	14,788,654
Breakdown of sales	Postal delivery・Logistics business	1,882,228	1,973,809	2,069,865
	Financial business	185,445	190,356	190,539
	International Logistics business	644,979	704,890	701,256
	Bank business	1,895,552	2,042,980	1,843,742
	Life Insurance business	8,659,363	7,952,894	7,916,596
	Others	56,135	53,606	51,348