Japan Post (6178) Investor presentation summary

Strategic direction and management plan

• Launched JP Plan 2028, a three-year medium-term management plan starting FY2026, focusing on sustaining universal service and expanding into new business areas.

• Key strategies include business structure reform, profit growth in new areas (real estate, logistics), and strengthening governance and digital transformation.

• Targets ROE of 5–7% (over 7% if postal charge revisions occur), cumulative shareholder return ratio of 50%+, and progressive dividends starting at ¥60 per share.

Postal and logistics business transformation

• Plans to consolidate collection and delivery bases from 3,200 to 2,700, aiming for ¥5 billion in efficiency gains and a net reduction of 7,000 employees by FY2028.

• Productivity improvements through AI, automation, and flexible personnel deployment; focus on expanding parcel business and cross-border e-commerce.

• Reviewing postal service fees and service levels to stabilize revenues amid declining mail volumes.

Real estate and new business growth

• Real estate business positioned as a new revenue pillar, targeting business income of ¥28 billion and ROA of 2.6% by FY2028.

• Strategic redevelopment of post office sites, with major projects like Kuramae JP Terrace and urban redevelopment in Tokyo.

• Expanding built-for-sale, rotational, and management businesses, with asset efficiency improvements and strategic liquidation of properties.