Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q1 FY2010 Earnings Presentation
28 slides from Japan Securities Finance's earnings presentation, April 2010
Slide 1: Financial Presentation for 1Q, FY2010
Financial Presentation for 1Q, FY2010 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 translation ar
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary FY2010, 1Q
Financial Summary FY2010, 1Q ¥ mil Parent Consolidated FY2009 FY2010 FY2009 FY2010 Change Change 1Q 1Q 1Q 1Q Operating ▲1,393 ▲1,878 6,437 5,044 (▲21.6%) 8,296 6,418 (▲22.6%) Revenues EX Premium ▲553 ▲1,038 Charges 4,602 4,049 6,462 5,423 (▲12.0%) (▲16.1%) Operating Expenses 3,301 2,205 ▲1,095 3,917
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Jun-09 Jun-10 Securities Finance Bussiness 6,399 5,020 Margin Loan Business 3,766 2,522 【Margin Loan】 【Margin Loan】 (45.4%) (39.3%) ・Although ・Although Interest Interest on on loans loans increased, increased, premium premium charges charges Interest on Loan
Slide 5: Financial Highlights for FY2010, 1Q
Financial Highlights for FY2010, 1Q 1 As As the the outstanding outstanding balance balance of of standardized standardized margin margin selling selling transactions transactions declined, Stock Loan declined, Stock Loan Balance Balance decreased. decreased. Avg. Margin Loan Balance for FY2010, 1Q：
Slide 6: Avg. Outstanding Balance of Margin Loans and Stock Loans
Avg. Outstanding Balance of Margin Loans and Stock Loans \tri Margin Loans(left) Stock Loans(left) Margin Loan Rate(right) 0.8 2.0% FY2008 (Result) FY2009 (Result) Margin Loan: \ 336 bn Margin Loan: \ 324 bn Stock Loan : \ 396 bn Stock Loan : \ 361bn 0.6 1.11% FY2010 １Ｑ(Result) Margin Loan: \ 369 bn
Slide 7: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions (TSE+JDQ) \ tri Feb-06 \ 6.0 \5.352bn 20,000 Standardized Margin Buying Transactions (left) 17,500 5.0 Standardized Margin Selling Transactions (left) Nikkei225(right) 15,000 4.0 12,500 3.0 10,000 Jun-10 7,500 2.0 Mar-09 \331bn \684bn 5,000 1.0
Slide 8: Financial Results of Group Companies
Financial Results of Group Companies FY2010, 1Q Results Shareholding Ratio Operating Recurring Net Revenues * Income Income Consolidated 6,418 1,839 1,818 JSF - 5,044 1,500 965 JSF Trust Bank 100% 1,147 312 883 Nihon Building 100% 336 144 91 Equity-method - Loss in Equity-Method 60 * Figure of JSF T
Slide 9: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2009 FY2010 change 1Q 1Q Recurring Revenues 1,626 1,147 ▲479 Recurring Income 205 312 +107 Extraordinary Profit － 570 +570 Net Income 205 883 +678 Equity Ratio 18.08％ 21.66％ Financial Financial Highlights Highlights for for FY2010, FY2010, 1Q 1Q Recurrin
Slide 10: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Jun-10) \mil 2% Sep-09 Mar-10 Jun-10 Notes JGB 802,388 897,766 789,835 22% JGB less than 1Y less than 1Y 706,880 847,870 739,938 over 1Y 95,507 49,895 49,896 Short-term Bond 0 0 0 JGB over 1Y Municipal Bond 70,479 105,02
Slide 11: Estimated Figures for FY2010
Estimated Figures for FY2010 ¥mil Parent Consolidated FY2010 FY2010 FY2010 FY2010 FY2010 FY2010 1Q Results 1Q-2Q 1Q-4Q 1Q Results 1Q-2Q 1Q-4Q Operating 1,230 1,600 1,900 1,671 2,300 2,900 Profit Recurring 1,500 1,900 2,400 1,839 2,500 3,700 Income Net Income 965 1,200 1,500 1,818 2,200 3,000 EPS (Ye
Slide 12: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans FY2010,1Q Results FY2010 Precondition Excess of Excess of Margin Loan Excess Margin Loan Excess of ¥223bn of Stock Loan ¥200bn Stock Loan ¥105bn ¥90bn Matching Matching ¥146bn ¥140bn Margin Loan Stock Loan Margin Loan Stock Loan ¥369bn ¥252bn ¥340bn ¥230bn Precon
Slide 13: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2010, 1Q Results FY2010 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Profit Income Income Profit Income Income Consolidated 1,671 1,839 1,818 2,900 3,700 3,000 JSF - 1,230 1,500 965 1,900 2,400 1,500 JSF Trust Bank 100% -
Slide 14: Appendix
a Appendix
Slide 15: End of Margin Loan Business for JASDAQ market
End of Margin Loan Business for JASDAQ market Apr 2004 Start margin loan business for JASDAQ market Apr 2010 Management integration of OSE and JASDAQ Oct 12 2010 Market integration of Hercules market and JASDAQ market End of Margin Loan Business for JASDAQ market Share of Standardized Margin Share o
Slide 16: 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 17: 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 18: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-06 Mar-07 Mar-08 Mar-09 Jun-09 Mar-10 Jun-10 Securities Finance Bussiness 29,075 34,917 38,619 34,427 6,399 20,817 5,020 Margin Loan Business 22,993 23,186 23,156 19,638 3,766 12,954 2,522 (61.8%) (53.3%) (45.8%) (44.3%) (45.4%) (46.5%) (39.3%) Interest
Slide 19: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2009 FY2010 FY2006 FY2007 FY2008 FY2009 1Q 1Q avg. 1,444,347 917,219 336,324 281,977 324,205 369,982 Margin Loans term-end 1,634,700 508,587 244,306 418,865 328,755 387,018 Bond Financing & General avg. 79,425 76,941 51,887 48,693 46,863 50,389 Loans term-end
Slide 20: 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) Ratio 50% 8 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 10 Japan Securities Finance Co.,Ltd 20
Slide 21: Margin Selling Transactions & JSF Stock Loans
Margin Selling Transactions & JSF Stock Loans (TSE+JDQ) ￥tri 2.0 100% 1.8 Margin Selling Balance (TSE+JDQ) 90% Stock Loan Balance (JSF) Ratio 1.6 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 10 Japan Securities F
Slide 22: Securities Account
Securities Account Mar-10 notes Mar-10 Assets Liabilities \mil \mil Collateral Money of Securities Loans 770,819 678,585 Lent Margin Loans 387,018 margin loan Margin Loans 184,655 Bond Financing & General Loans 51,051 Loans for Negotiable Margin 21,507 Transaction Others 14,500 Trust Bank Loans 318,
Slide 23: 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 24: JGB Balance
JGB Balance JSF \ bn 2,000 1.5 \ mil 444 JSF Sep-09 Mar-10 Jun-10 1,500 367 272 1.0 JGB Balance 1,490,320 2,085,612 1,644,387 1,278 less than 1Y 1,218,803 1,641,497 1,277,845 1,000 1,641 over 1Y 271,517 444,115 366,542 1,219 (.86) (.77) 0.5 (15Y floating JGB) 192,516 193,314 193,320 500 Net unrealiz
Slide 25: 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 26: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 8 .7 5 % L o a n R a te 9.0% In te re s t R a te o n C o lla te ra l M o n e y o f S to c k L o a n 8.0% L e n d in g F e e P ro fit M a rg in 7.0% 6.0% 5 .0 0 % 5.0% Sep 93 4.0% 3 .7 5 % 3.0% J an 0 9 2.0% M ay 0 2 1 .3 7 % 1.0% 0.0% 88 89 90 91 92 9
Slide 27: Securities-related Business by JSF Group Companies
Securities-related Business by JSF Group Companies TSE TSE Securities Finance Business Sapporo JapanSecurities SecuritiesFinance Finance Sapporo Japan Loansfor Loans forMargin Margin Transactions Fukuoka Transactions Fukuoka Loansfor Loans fornegotiable negotiablemargin margin Designated as transact
Slide 28: 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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