Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — H1 FY2009 Earnings Presentation
37 slides from Japan Securities Finance's earnings presentation, March 2009
Slide 1: Financial Presentation for 1st Half, FY2009
Financial Presentation for 1st Half, FY2009 Japan Securities Finance Co.,Ltd This document is the English translation for non-Japanese investors convenience. Although Japan Securities Finance intend to faithfully translate the Japanese documents into English, the accuracy and correctness of translat
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 1st Half, FY2009
Financial Summary for 1st Half, FY2009 ¥ mil Parent Consolidated FY2008 FY2009 FY2008 FY2009 Change Change 1H 1H 1H 1H Operating ▲6,081 ▲7,533 Revenues 17,986 11,904 (▲33.8%) 23,282 15,749 (▲32.4%) EX Premium ▲4,334 ▲5,786 Charges 12,817 8,482 18,113 12,327 (▲33.8%) (▲31.9%) Operating Expenses 12,21
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Sep-08 Sep-09 Margin Loan Business 9,813 7,426 【Margin Loan】 【Margin Loan】 (42.2%) (47.2%) ・As margin ・As margin loan loan balance balance declined declined and and margin margin loan loan rate rate Interest on Loans 2,491 1,638 was was lowered, lowered, Int
Slide 5: Financial Highlights for 1st Half, FY2009: Margin Loan Balance
Financial Highlights for 1st Half, FY2009 1 Margin Margin Loan Loan Balance Balance for for 1 st Half, 1st Half, FY2009 FY2009 Avg. Margin Avg. Stock Loan Rate Policy Rate \ mil Loan Loan （as of sep） （as of sep） Sep-08 Sep-09 Change \ bn \ bn Margin Loan Business 9,813 7,426 -24.3% FY2009, 1H 317 43
Slide 6: Decrease of Operating Expenses and G&A Expenses
Financial Highlights for 1st Half, FY2009 2 Decrease Decrease of of Operating Operating Expenses Expenses and and General General & & Administrative Administrative Expenses Expenses [Operating Expenses] ▲61.0%, YoY ＊Interest paid for funding money decreased largely, due to a decline of market rate.
Slide 7: Change in Scope of Equity-Method Companies
Financial Highlights for 1st Half, FY2009 4 Change Change in in scope scope of of Equity-Method Equity-Method Companies Companies Following the business reorganization of JBIS group, JSF change the range of Equity-method companies. Newly, JBIS Holdings (consolidated) and JSFIT is adopted as Equity-m
Slide 8: Disclose of Estimated Figures and Quick Disclose of Results
Financial Highlights for 1st Half, FY2009 5 Disclose Disclose of of Estimated Estimated Figures Figures and and Quick Quick Disclose Disclose of of Financial Financial Results Results Disclose estimated figures, which are calculated automatically with preconditions (record figures of margin loan bu
Slide 9: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2009, 1H Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 15,749 3,512 2,238 JSF - 11,904 2,782 1,853 JSF Trust Bank 100% 3,384 801 801 Nihon Building 100% 718 315 182 Equity-method - Loss in Equity-Method ▲ 425 * Fi
Slide 10: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2008 FY2009 change 1H 1H Recurring Revenues 5,057 3,384 ▲1,672 Trust charges 106 114 8 Recurring Income ▲3,896 801 4,698 Net Income ▲3,873 801 4,674 Equity Ratio 17.77％ Financial Financial Highlights Highlights for for 11stst Half, Half, FY2009 FY2009 Tru
Slide 11: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Sep-09) \mil 2% Sep-08 Mar-09 Sep-09 Notes JGB less JGB 448,517 877,724 802,388 21% than 1Y less than 1Y 408,746 837,866 706,880 JGB over 1Y over 1Y 39,771 39,858 95,507 Short-term Bond 0 0 0 Municipal Bond 0 50,259 70,4
Slide 12: Estimated Figures for FY2009
Estimated Figures for FY2009 Parent Consolidated 1st Half FY2009 FY2009 1st Half FY2009 FY2009 estimated 1st Half estimated estimated estimated 1st Half estimated estimated difference difference difference difference (announced Result (announced on (announced on (announced Result (announced on (anno
Slide 13: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans 1H, FY2009 Results FY2009 Precondition Excess of Excess Excess of Excess of Margin Loan of Stock Loan Stock Loan Margin Loan ¥129bn ¥243bn ¥130bn ¥190bn Matching Matching ¥187bn ¥210bn Margin Loan Stock Loan Margin Loan Stock Loan ¥317bn ¥431bn ¥340bn ¥400bn Oct-
Slide 14: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2009, 1H Results FY2009 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 3,790 3,512 2,238 4,900 4,900 3,200 JSF - 2,473 2,782 1,853 3,500 3,900 2,400 JSF Trust Bank 100%
Slide 15: Management Matters
Management Matters
Slide 16: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions (TSE+JDQ) \ tri \ 5.0 20,000 Standardized Margin Buying Transactions (left) 4.5 18,000 Standardized Margin Selling Transactions (left) 4.0 Nikkei225(right) 16,000 3.5 14,000 3.0 12,000 2.5 10,000 2.0 8,000 1.5 Sep-09 \ 1,312bn 6,000 1.0 4,000 0
Slide 17: From 1st MMP to 2nd MMP
From 1st MMP to 2nd MMP ・ Corporate Idea As s special institution of securities finance business, recognizing sincerely its public task, Japan Securities Finance has a mission to contribute for the development of securities market by capturing actively various needs in securities industry and financ
Slide 18: Increase the number of Loanable Issues
Increase the number of Loanable Issues Increase the number of Loanable Issues to improve convenience and to strengthen competiveness of Margin Loan Business ☆ If Increases the number of Loanable Issues, Improve convenience ・・・Issues eligible for short sale increase, then expect increase of margin tr
Slide 19: Business Strategy of JSF Trust Bank
Business Strategy of JSF Trust Bank Present Measures 1.Expand of Trust Business ・Business promotion to foreign exchange brokers for Foreign Exchange Margin Trust ・Boost Securities Trust 2.Securities Investment Policy in Banking Business ・Investment in riskless assets such as JGBs or government guara
Slide 20: Securities-related Business by JSF Group Companies
Securities-related Business by JSF Group Companies TSE TSE Securities Finance Business JASDAQ JapanSecurities SecuritiesFinance Finance JASDAQ Japan Loansfor Loans forMargin Margin Transactions Sapporo Transactions Sapporo Fukuoka Loansfor Loans fornegotiable negotiablemargin margin Fukuoka Designat
Slide 21: Discontinue Operations of Branch Offices
Discontinue Operations of Branch Offices Discontinue operations of Sapporo ● Sapporo Branch and Fukuoka Branch by the end of Mar 2010 The business of both branches will be succeeded to Head Office ● Head Office Fukuoka ● Japan Securities Finance Co.,Ltd 21
Slide 22: Dividend Policy
Dividend Policy Dividend Policy Basically, Basically, Dividend Dividend Payout Payout Ratio Ratio of of about about 40% 40% on on Parent Parent Financial Financial Results, Results, and and considering considering Consolidated Consolidated DPR DPR or or Dividend Dividend on on Equity Equity (DOE
Slide 23: Appendix
a Appendix
Slide 24: Main Points of 2nd MMP (FY2009-FY2011)
Main Points of 2nd MMP（FY2009～FY2011） ・ Corporate Idea As s special institution of securities finance business, recognizing sincerely its public task, Japan Securities Finance has a mission to contribute for the development of securities market by capturing actively various needs in securities indus
Slide 25: Features of Balance Sheet
Features of Balance Sheet Features of Assets Features of Liabilities (1) Fluctuation of Loan Balance (1) Fluctuation of money funding amount Loan balance moves everyday because margin loan is Need to response flexibly to fluctuating cash demands, over-night loan because of the fluctuation of margin
Slide 26: Maintenance of Cash Funding Sources
Maintenance of Cash Funding Sources Strengthen cash funding ability by maintaining cash funding sources, to supply low rate money stably to securities market and to enhance company’s financial soundness. To fund fluctuating money with low rate, it’s important for the company to maintain solid amou
Slide 27: Share Buyback Program
Share Buyback Program total shares start end purchased amount cancellation shares issued shs \ mil shs shs FY2008 2008/4/1 2008/4/18 4,312,800 2,999 99,704,000 2008/5/15 2008/6/11 978,900 999 99,704,000 2008/6/27 2008/7/25 1,000,000 881 99,704,000 2008/9/24 6,004,000 93,700,000 6,291,700 4,881 Numbe
Slide 28: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-05 Mar-06 Mar-07 Mar-08 Sep-08 Mar-09 Sep-09 Margin Loan Business 17,309 22,993 23,186 23,156 9,813 19,638 7,426 (47.9%) (61.8%) (53.3%) (45.8%) (42.2%) (44.3%) (47.2%) Interest on Loans 6,794 10,158 10,954 10,581 2,491 3,899 1,638 Interest on collateral
Slide 29: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2008 FY2009 FY2004 FY2005 FY2006 FY2007 FY2008 Interim Interim avg. 1,098,660 1,637,698 1,444,347 917,219 423,294 336,324 317,156 Margin Loans term-end 1,386,619 2,328,082 1,634,700 508,587 446,412 244,306 384,728 Bond Financing & General avg. 45,333 46,436 79
Slide 30: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans (TSE+JDQ) \ tri 10 60% Margin Buying Balance (TSE+JDQ) 9 Margin Loan Balance (JSF) 50% 8 Ratio 7 40% 6 5 30% 4 20% 3 2 10% 1 0 0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Japan Securities Finance Co.,Ltd 30
Slide 31: Margin Selling Transactions & JSF Stock Loans
Margin Selling Transactions & JSF Stock Loans (TSE+JDQ) ￥tri 2.0 100% Margin Selling Balance (TSE+JDQ) 1.8 90% Stock Loan Balance (JSF) 1.6 Ratio 80% 1.4 70% 1.2 60% 1.0 50% 0.8 40% 0.6 30% 0.4 20% 0.2 10% 0.0 0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Japan Securities Fina
Slide 32: Securities Account
Securities Account Sep-09 notes Sep-09 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 639,541 767,994 Lent Margin Loans 384,728 margin loan Margin Loans 373,791 stock loan Bond Financing & General Loans 47,385 Loans for Negotiable Margin 17,688 Transaction Others 14,500 Trus
Slide 33: JGB Balance
JGB Balance \ mil \ bn JSF JSF Sep-08 Mar-09 Sep-09 2,000 1.5 253 JGB Balance 1,237,755 2,013,849 1,490,320 1,500 less than 1Y 995,818 1,760,788 1,218,803 272 1.0 over 1Y 241,936 253,061 271,517 242 1,000 1,219 (15Y floating JGB) 187,212 188,511 192,516 1,761 Net unrealized gain or loss on securitie
Slide 34: CDOs of JSF Trust Bank
CDOs of JSF Trust Bank Synthetic Portfolio Note is expected to be redeemed before maturity and in progress ●CDOs \mil Original Mar-08 Sep-08 Dec-08 Mar-09 Ratings Sep-09 Issue Maturity Principal Balance Balance Balance Balance original change Balance Self Managed CDO 4,000 2,111 1,047 561 232 AAA
Slide 35: Margin Loan Rates
Margin Loan Rates Margin Loan Stock Loan BOJ Policy Interest Rate Jul 2006 Uncollateralized O/N Call Rate:0.25％ Securities Company Securities Company Feb 2007 Uncollateralized O/N Call Rate:0.50％ JSF Loan Rate Lending Oct 2008 Uncollateralized O/N Call Rate:0.30％（▲0.20%） 0.97% Fee 0.40% Dec
Slide 36: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 8.75% Loan Rate 9.0% Interest Rate on Collateral Money for Stock Loan 8.0% Lending Fee 7.0% Profit Margin 6.0% 5.00% 5.0% Sep-93 4.0% 3.75% 3.0% Jan-09 2.0% May-02 1.37% 1.0% 0.0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Japan
Slide 37: Notice
Notice This document includes statements for business forecast. These statements don’t guarantee company’s future achievement and that involve risk or uncertain factors. Company’s future achievement may be changed drastically up to stock market or financial conditions. Japan Securities Finance Co.,L
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