Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q3 FY2009 Earnings Presentation
30 slides from Japan Securities Finance's earnings presentation, February 2010
Slide 1: Financial Presentation for 3Q, FY2009
Financial Presentation for 3Q, 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 translation ar
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 3Q, FY2009
Financial Summary for 3Q, FY2009 ¥ mil Parent Consolidated FY2008 FY2009 FY2008 FY2009 Change Change 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Operating ▲10,788 ▲13,174 Revenues 27,186 16,398 (▲39.7%) 34,704 21,530 (▲38.0%) EX Premium ▲7,176 ▲9,564 Charges 19,056 11,879 26,574 17,011 (▲37.7%) (▲36.0%) Operating Expen
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Dec-08 Dec-09 Margin Loan Business 14,483 10,091 【Margin Loan】 【Margin Loan】 (41.7%) (46.9%) Interest on Loans 3,250 2,515 ・As margin ・As margin loan loan balance balance declined declined and and margin margin loan loan rate rate Interest on collateral mone
Slide 5: Financial Highlights for 3Q, FY2009
Financial Highlights for 3Q, FY2009 1 Margin Margin Loan Loan Balance Balance for for 1Q 1Q – – 3Q 3Q ,, FY2009 FY2009 \ mil Avg. Margin Avg. Stock Loan Rate Policy Rate Dec-08 Dec-09 Change Loan Loan （as of Dec） （as of Dec） Margin Loan Business 14,483 10,091 -30.3% \ bn \ bn Interest on Loans 3,250
Slide 6: Financial Highlights for 3Q, FY2009
Financial Highlights for 3Q, FY2009 2 Decrease Decrease of of Operating Operating Expenses Expenses and and General General & & Administrative Administrative Expenses Expenses [Operating Expenses] ▲66.7%, YoY ＊Interest paid for funding money decreased largely, due to a decline of market rate. ＊Valua
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2009, 1Q-3Q Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 21,530 4,165 2,500 JSF - 16,398 3,581 2,365 JSF Trust Bank 100% 4,447 1,068 1,067 Nihon Building 100% 1,063 445 259 Equity-method - Loss in Equity-Method ▲
Slide 8: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2008 FY2009 change 1Q-3Q 1Q-3Q Recurring Revenues 7,223 4,447 ▲2,775 Trust charges 162 179 +16 Recurring Income ▲7,096 1,068 +8,165 Net Income ▲7,073 1,067 +8,140 Equity Ratio 17.37％ Financial Financial Highlights Highlights for for 3Q, 3Q, FY2009 FY2009
Slide 9: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings \mil ● Ratio of Securities (as of Dec-09) 2% JGB less than 1Y Mar-09 Sep-09 Dec-09 Notes JGB 877,724 802,388 616,513 less than 1Y 837,866 706,880 536,172 JGB over 1Y over 1Y 39,858 95,507 80,341 30% Short-term Bond 0 0 0 Municipal Bond Municipal Bo
Slide 10: Estimated Figures for FY2009
Estimated Figures for FY2009 Parent Consolidated FY2009 FY2009 FY2009 FY2009 estimated estimated estimated estimated 3Q Result difference 3Q Result difference (announced on (announced on (announced on (announced on \ mil 9/Nov/09) 3/Feb/10) 9/Nov/09) 3/Feb/10) Operating Income 3,169 3,500 3,400 ▲100
Slide 11: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans 1Q-3Q, FY2009 Results FY2009 Precondition Excess of Excess Excess of Excess of Margin Loan of Stock Loan Stock Loan Margin Loan ¥142bn ¥204bn ¥130bn ¥190bn Matching Matching ¥183bn ¥180bn Margin Loan Stock Loan Margin Loan Stock Loan ¥325bn ¥387bn ¥310bn ¥370bn J
Slide 12: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2009, 1Q-3Q Results FY2009 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 4,926 4,165 2,500 4,800 4,000 2,200 JSF - 3,169 3,581 2,365 3,400 3,800 2,400 JSF Trust Bank 1
Slide 13: Appendix
a Appendix
Slide 14: 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 15: 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 16: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions (TSE+JDQ) \ tri \ 5.0 20,000 4.5 Standardized Margin Buying Transactions (left) 18,000 4.0 Standardized Margin Selling Transactions (left) 16,000 Nikkei225(right) 3.5 14,000 3.0 12,000 2.5 10,000 2.0 8,000 1.5 6,000 1.0 4,000 0.5 2,000 0.0 - Ap
Slide 17: 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 18: 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 19: 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 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: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-05 Mar-06 Mar-07 Mar-08 Dec-08 Mar-09 Dec-09 Margin Loan Business 17,309 22,993 23,186 23,156 14,483 19,638 10,091 (47.9%) (61.8%) (53.3%) (45.8%) (41.7%) (44.3%) (46.9%) Interest on Loans 6,794 10,158 10,954 10,581 3,250 3,899 2,515 Interest on collater
Slide 22: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2008 FY2009 FY2004 FY2005 FY2006 FY2007 FY2008 1Q-3Q 1Q-3Q avg. 1,098,660 1,637,698 1,444,347 917,219 366,794 336,324 325,205 Margin Loans term-end 1,386,619 2,328,082 1,634,700 508,587 236,023 244,306 293,117 Bond Financing & General avg. 45,333 46,436 79,425
Slide 23: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans (TSE+JDQ) \ tri 10 60% 9 Margin Buying Balance (TSE+JDQ) 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 23
Slide 24: 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 Stock Loan Balance (JSF) 90% 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 Japan Securities Fina
Slide 25: Securities Account
Securities Account Dec-09 notes Dec-09 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 560,573 808,368 Lent Margin Loans 293,117 margin loan Margin Loans 289,886 stock loan Bond Financing & General Loans 42,578 Loans for Negotiable Margin 13,822 Transaction Others 14,500 Trus
Slide 26: JGB Balance
JGB Balance \ mil \ bn JSF 2,000 1.5 JSF Mar-09 Sep-09 Dec-09 253 JGB Balance 2,013,849 1,490,320 1,688,458 345 1,500 less than 1Y 1,760,788 1,218,803 1,343,126 272 1.0 over 1Y 253,061 271,517 345,332 1,343 (15Y floating JGB) 1,000 1,761 188,511 192,516 194,119 Net unrealized gain or loss on 1,219 (
Slide 27: 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 28: 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 29: 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 30: 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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