Japan Securities Finance Co., Ltd. · TSE:8511

Japan Securities Finance — 2Q FY2013 Earnings Presentation

38 slides from Japan Securities Finance's earnings presentation, Nov 13, 2013

  1. Slide 1: 2Q Results Presentation, Fiscal Year Ending March 2014

    2014 3 , 2013 11 13 2

  2. Slide 2: Slide 2

  3. Slide 3: Summary of consolidated results for 2Q

    13 3 14 3 13 3 14 3 2Q 2Q 2Q 2Q 566 620 7,242 7,809 (7.8%) 8,682 9,303 (7.2%) 748 803 5,679 6,428 7,120 7,923 (13.2%) (11.3%) 3,771 3,550 221 4,190 4,150 39 3,029 3,330 301 3,624 4,184 559 485 101 441 927 (110.1%) 867 968 11.7% 30 89 119 535 180 656 1,191 (81.5%) 1,045 1,226 17.3% 17 4,350 4,333 9 4

  4. Slide 4: Non-consolidated income statement 2Q

    13 3 14 3 2Q 2Q 7,211 7,792 3,157 4,196 (36.4%) (45.1%) 838 1,946 257 177 1,907 1,748 1,562 1,380 344 368 386 848 (4.5%) (9.1%) 238 466 82 161 991 1,149 (11.4%) (12.3%) 119 167 871 982 2,675 1,597 (30.8%) (17.2%) 2,638 1,540 1,063 1,075 (12.2%) (11.6%) 311 184 157 229 584 649 407 436 (4.7%) (4.7%) 8

  5. Slide 5: Revenue and spread trends

    1 1Q 2Q 13 3 14 3 2Q 2Q 3,157 4,196 32.9% 2013 4,729 1,689 0.77% 838 1,946 132.1% 2,672 98 ― 257 177 31.1% 1,907 1,748 8.3% 1,562 1,380 11.6% 2012 2,057 1,590 0.77% 344 368 6.8% 6,000 2.5%  2013 4,729 5,000 1,689 2.0% 2012  4,000 2,057 1,590 0.77% 1.5% 3,000 1.0% 2,000 0.5% 1,000 0 0.0% 4 5 6 7 8

  6. Slide 6: Extraordinary items and income details

    2 1Q 2Q  13 3 14 3 2Q 2Q 2,638 1,540 1,098 584 649 65 3 1Q  13 3 14 3 2Q 2Q 3,624 4,184 559 ― 134 134 83 ― 83 4 2Q  13 3 14 3 2Q 2Q 136 4,409 4,273 ― 4,409 4,409 Japan Securities Finance Co.,Ltd 6

  7. Slide 7: Results by segment and subsidiaries

    100% 100% 20.0% 20.8% JSFIT 2014 3 2 9,303 1,226 4,986 740 - 7,809 1,191 5,082 456 100% 1,076 206 235 280 100% 635 262 159 139 - 89 30 Japan Securities Finance Co.,Ltd 7

  8. Slide 8: Subsidiary and company results 2Q

    13 3 14 3 2Q 2Q 1,192 1,076 115  157 230 72 894 1,283 389 ― 237 237  297 206 504  280 235 515 23,491 23,692 200 901,338 711,709 189,628 35.37 51.39% Japan Securities Finance Co.,Ltd 8

  9. Slide 9: Earnings forecast and dividend forecast

    2014 3 2013 2014 3 ( ) 2013 3 3,500 1,900 2,400 5,400 500 1,777 500 400 +3,500 1,400 1,800 5,100 喰 1,025 500 500 +3,500 1,200 40 40 ― 95 + 20 + 30 4,700 1,700 455 485 290 ( 500 100 262 +15 +15 +10 2013 3,500 460 喰 1,229 0.77 0% 0.40 4,729 1,689 Japan Securities Finance Co.,Ltd 9

  10. Slide 10: Slide 10

  11. Slide 11: Key indicator trends

    6.0 60% 5.0 50% 4.0 40% 3.0 30% 2.0 20% 1.0 10% 0.0 0% 03 04 05 06 07 08 09 10 11 12 13 1.8 100% 1.6 90% 1.4 80% 70% 1.2 60% 1.0 50% 0.8 40% 0.6 30% 0.4 20% 0.2 10% 0.0 0% 03 04 05 06 07 08 09 10 11 12 13 Japan Securities Finance Co.,Ltd 11

  12. Slide 12: Market environment 2012-2013

    (2012 4 2013 10 Japan Securities Finance Co.,Ltd 12

  13. Slide 13: Japan Securities Finance Co.,Ltd

    Japan Securities Finance Co.,Ltd 13

  14. Slide 14: Japan Securities Finance Co.,Ltd

    25 11 5 50 50 Japan Securities Finance Co.,Ltd 14

  15. Slide 15: Market balances comparison

          2013 6 2013 9 116,246 133,584 +17,337 109,649 126,196 +16,546 15,354 Japan Securities Finance Co.,Ltd 15

  16. Slide 16: Medium-term management plan

           3 (H26 28 ) Japan Securities Finance Co.,Ltd 16

  17. Slide 17: Japan Securities Finance Co.,Ltd

    Japan Securities Finance Co.,Ltd 17

  18. Slide 18: JASDAQ-related business matters

    1   JASDAQ  147 JASDAQ 125 272  (7/16) 1,990 2013 9 1,991 123 JASDAQ 123 272 24 JASDAQ 2 2   (SBI SMBC ) Japan Securities Finance Co.,Ltd 18

  19. Slide 19: Margin trading and lending balances

    3  2013 3 12 34,380 2013 9 16 40,782 4   13 3 14 3 6,084 7,025 * 14 3 2,194 678 *2 (7/21) 8,279 7,703 ▲ 575 Japan Securities Finance Co.,Ltd 19

  20. Slide 20: Dividends and shareholder returns

     40 2014 3 14 7 7 2013 2007 2008 2009 2010 2011 2012 26 20 14 14 14 14 14 13 10 7 7 7 7 7 13 10 7 7 7 7 7 13.1 80.3 38.6 37.7 8.4 19.1 52.5 - - 36.5% 37.1% 166.3% 73.3% 26.7% DOE 2.1% 1.7% 1.2% 1.2% 1.2% 1.2% 1.2% 49.7 28.3 27.0 17.3 13.2 11.0 49.6 52.3% 70.7% 51.9% 80.7% 106.0% 127.1% 28.3% Japan

  21. Slide 21: Slide 21

  22. Slide 22: Income statement trends

    13 3 14 3 09 3 10 3 11 3 12 3 13 3 2Q 2Q 34,427 20,817 17,558 15,186 7,211 14,093 7,792 19,638 12,954 8,922 6,756 3,157 6,625 4,196 (44.3%) (46.5%) (39.0%) (33.4%) (36.4%) (37.5%) (45.1%) 3,899 3,324 2,809 1,783 838 1,760 1,946 1,992 1,774 826 639 257 652 177 13,278 7,337 4,807 3,957 1,907 3,746 1,7

  23. Slide 23: Balance sheet trends

    2008 2009 2010 2011 2012 2012 2013 2Q 2Q 336,324 324,205 293,429 218,059 205,739 214,164 472,976 244,306 328,755 305,083 241,035 172,283 502,322 569,353 51,887 46,863 45,850 50,893 58,353 55,865 139,032 53,141 51,448 39,782 96,488 94,304 122,011 156,346 14,282 17,173 18,405 20,330 18,229 18,472 35,1

  24. Slide 24: Japan Securities Finance Co.,Ltd

    2012 2014              Japan Securities Finance Co.,Ltd 24

  25. Slide 25: Web, HP and IR; share price and shareholders

    Web 25 1 HP IR 2013 1,991 2,000 1,800 1,683 1,682 1,708 1,645 1,657 1,623 (143) 1,600 (117) (101) (103) (108) (111) (93) 1,400 [10] [10] [10] [10] [10] 1,200 1,000 10 9 11 3 11 9 12 3 12 9 13 3 13 9 Japan Securities Finance Co.,Ltd 25

  26. Slide 26: Japan Securities Finance Co.,Ltd

    喰  Japan Securities Finance Co.,Ltd 26

  27. Slide 27: Interest rate trends

     2006 7 O/N 0.25%  2007 2 O/N 0.50%  2008 10 O/N 0.30% 0.20% 0.77% 0.40%  2008 12 O/N 0.10% 0.20%  2010 10 O/N 0 0.10% 0.10 0%  2013 4 0%  2006 7 27 0.74% +0.14% 1.2%  2006 9 22 0.86% +0.12% 1.0%  2007 3 15 1.02% +0.16%  2007 4 5 1.11% +0.09% 0.8% 0.6%  2009 1 29 0.97% 0.14%  2010 11 22

  28. Slide 28: Official discount rate trends

    10.0% 9.0% 8.75% 8.0% 鞘 7.0% 6.0% 5.00% 5.0% 1993 9 2010 11 4.0% 3.75% 3.0% 2009 1 2002 5 2.0% 1.17% 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 10 11 12 13 Japan Securities Finance Co.,Ltd 28

  29. Slide 29: Japan Securities Finance Co.,Ltd

    Japan Securities Finance Co.,Ltd 29

  30. Slide 30: Lending balances

    13 9 13 9  752,449  426,760  472,803 1  1,320,046  1,408,222  738,322 1  3,000 126,196 Japan Securities Finance Co.,Ltd 30

  31. Slide 31: Loan and borrowing balances

    ( )   ( 2 )   遡  遡 2013 3 4,175,537 3,433,456 ▲ 742,081 2013 9 4,853,834 3,997,769 ▲ 856,064 Japan Securities Finance Co.,Ltd 31

  32. Slide 32: Balances by category

    10 3,000 2,500 12 9 13 3 13 9 (1.69) 2,000 1,681,442 1,050,772 1,173,933 (1.28) 1,500 (1.13) 1 946,967 650,205 472,803 734 401 1 734,475 400,567 701,130 1,000 ( 15 ) 152,898 151,912 150,752 701 500 947 650 473 5,042 6,783 5,890 - ( ) (1.13) (1.28) (1.69) 12 9 13 3 13 9 10 500 12 9 13 3 13 9 346,931

  33. Slide 33: Operating balances 2Q

    13 3 14 3 2Q 2Q 705,198 1,283,525 742,338 103,259 65,723 37,535 731,059 608,322 122,736 280 235 515 Japan Securities Finance Co.,Ltd 33

  34. Slide 34: Securities portfolio breakdown

    12 9 13 3 13 9 12 9 13 3 13 9 346,931 172,968 375,273 31,047 30.1% 23,386 29.4% 20,828 31.7% 266,998 99,285 20,001 0 0.0% 0 0.0% 0 0.0% 79,933 73,682 355,272 336 0.3% 288 0.4% 240 0.4% 146,615 80,188 80,524 1,618 1.6% 692 0.9% 468 0.7% 237,303 159,200 152,318 0 0.0% 0 0.0% 0 0.0% 4 4 4 2,666 2.6% 2,

  35. Slide 35: Share repurchases and shares outstanding

    2008 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 4,881 120,000 1.6 1.4 01 107,509 5,965 110,000 1.2 02 101,810 5,699 1.0 03 99,704 2,106 04 99,704 100,000 0.8 05 99,704

  36. Slide 36: Credit ratings

    JCR R&I Standard & Poor’s 2013 9 30 Rating Outlook Rating Outlook Rating Outlook AA- AA- A J-1+ a-1+ A-1 CP 1 1 ― A+ A+ ― ― J-1+ a-1 ― ― Japan Securities Finance Co.,Ltd 36

  37. Slide 37: Japan Securities Finance Co.,Ltd

    Japan Securities Finance Co.,Ltd 37

  38. Slide 38: Japan Securities Finance Co.,Ltd

    Japan Securities Finance Co.,Ltd 38

Japan Securities Finance — 2Q FY2013 Earnings Presentation on 6ix