Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — 3Q FY2012 Earnings Presentation
27 slides from Japan Securities Finance's earnings presentation, February 2012
Slide 1: Financial Presentation for 3Q, FY2012
Financial Presentation for 3Q, FY2012 Japan Securities Finance Co.,Ltd This document is an 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 are
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 3Q, FY2012
Financial Summary for 3Q, FY2012 ¥ mil Parent Consolidated FY2011 FY2012 FY2011 FY2012 Change Change 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Operating ▲533 ▲2,298 11,341 10,808 (▲4.7%) 15,514 13,216 (▲14.8%) Revenues EX Premium ▲779 ▲2,544 Charges 9,317 8,537 13,490 10,945 (▲8.4%) (▲18.9%) Operating Expenses 6,031
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business Real Estate \ mil Management, Dec-11 Dec-12 Dec-11 4.0% Securities Finance Bussiness 11,267 10,762 Margin Loan, Trust Banking, Margin Loan Business 4,678 4,656 23.4% 30.1% (30.1%) (35.2%) Interest on Loans 1,403 1,174 Interest on collateral money of securities 433
Slide 5: Financial Highlights for FY2012, 3Q ①
Financial Highlights for FY2012, 3Q ① 1 Margin Margin Loan Loan Balance Balance for for 3Q, 3Q, FY2012 FY2012 \ mil Dec-11 Dec-12 Change Avg. Margin Avg. Stock Loan Rate Policy Rate Loan Loan （as of Dec） （as of Dec） Margin Loan Business 4,678 4,656 ▲0.5% \ bn \ bn Interest on Loans 1,403 1,174 ▲16.3
Slide 6: Financial Highlights for FY2012, 3Q ②
Financial Highlights for FY2012, 3Q ② 2 Profit Profit on on bond bond investment investment largely largely decreased decreased in in JSF JSF and and JSF JSF Trust Trust Bank. Bank. < Background > JSF: Reducing the amount of bond investment JSF Trust Bank : Disappearance of CDO-sale profits post
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies Subsidiary Affiliate （ ) Shareholding Ratio Japan Securities Finance （100%） （100%） （20.0%） （20.8%） JSF Nihon Japan Information ※ JSFIT Trust Bank Building Processing ※ Japan Information Processing merged with JBIS Holdings on January 1, 2013. \ mil FY2012, 3Q Res
Slide 8: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2011 FY2012 change 1Q-3Q 1Q-3Q Recurring Revenues 3,635 1,936 ▲1,698 Trust charges 223 243 20 Recurring Expenses 1,831 1,931 100 Provision for Allowance 62 470 407 for Doubtful Receivables Recurring Income 1,803 4 ▲1,799 Net Income 1,802 ▲32 ▲1,835 Equity
Slide 9: Overview of the Merger with OSF
Overview of the Merger with OSF The business combination of TSE and OSE （Japan Exchange Group, Inc. Jan.2013） and the consolidation of Background and the cash equities markets To meet the needs of equity market participants and Reasons investors and to improve the efficiency of the equity market
Slide 10: Status after Merger
Status after Merger JAPAN SECURITIES FINANCE CO., LTD. Corporate Name 2-10,1-CHOME,KAYABA-CHO,NIHONBASHI, Location of Head Office CHUO-KU,TOKYO 103-0025, JAPAN (no change) Chairperson Minoru Masubuchi Representative Vice Chairperson Takao Hotta President Eizo Kobayashi Capital 10,000 millio
Slide 11: Estimated Figures for FY2012
Estimated Figures for FY2012 Precondition Balance of Margin Loans FY2012 Precondition Excess of ¥mil Margin Loan Excess of FY2012 Estimated Figures (Reference) ¥100bn Stock Loan FY2011 Operating Recurring Net ¥90bn Net Income Income Income Income Matching 1,600 2,000 1,400 ¥100bn Consolidated 779 （+
Slide 12: Appendix
a Appendix
Slide 13: Dividend Policy
Dividend Policy Ｎｅｗ Dividend Policy Basically, Dividend Payout Ratio of about 40% on Consolidated Financial Results, Results considering Dividend on Equity (DOE) Ratio. FY2012 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY 2007 2008 2009 2010 2011 2012 Annual Dividend per share ¥
Slide 14: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-08 Mar-09 Mar-10 Mar-11 Dec-11 Mar-12 Dec-12 Securities Finance Bussiness 38,619 34,427 20,817 17,558 11,267 15,186 10,762 Margin Loan Business 23,156 19,638 12,954 8,922 4,678 6,756 4,656 (45.8%) (44.3%) (46.5%) (39.0%) (30.1%) (33.4%) (35.2%) Interest
Slide 15: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2011 FY2012 FY2007 FY2008 FY2009 FY2010 FY2011 3Q 3Q avg. 917,219 336,324 324,205 293,429 229,212 218,059 190,659 Margin Loans term-end 508,587 244,306 328,755 305,083 196,816 241,035 185,293 Bond Financing & General avg. 76,941 51,887 46,863 45,850 46,067 50,
Slide 16: Margin Transactions & Margin Loans
Margin Transactions & Margin Loans \ tri 9 90% 8 Margin Buying Balance 80% Margin Loan Balance 7 Ratio 70% 6 60% 5 50% 4 40% 3 30% 2 20% 1 10% 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 2.0 ￥tri 100% 1.8 Margin Selling Balance 90% 1.6 Stock Loan Balance 80% Ratio
Slide 17: Securities Account
Securities Account Dec-12 notes Dec-12 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 354,734 947,398 Lent Margin Loans 185,293 margin loan Margin Loans 235,484 stock loan Collateral Money of Securities 1,081,326 Borrowed Excess of Stock Loan 131,258 stock loan Securities Ac
Slide 18: Features of Balance Sheet (Non-Consolidated)
Features of Balance Sheet （NonｰConsolidated) 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 flu
Slide 19: JGB Balance
JGB Balance \ mil \ bn JSF 2,500 2.0 JSF Dec-11 Mar-12 Dec-12 2,000 808 JGB Balance 2,381,119 2,094,731 1,371,132 776 1.5 (1.16) 1 year or less 1,572,960 1,318,655 877,116 1,500 (1.19) 1.0 over 1Y 808,158 776,076 494,015 1,000 (1.11) 494 (15Y floating JGB) 152,947 152,747 153,196 1,573 1,319 0.5 Net
Slide 20: Revenue Structure of Margin Loans
Revenue Structure of Margin Loans BLUE：Operating Revenues RED：Operating Expenses Interest on Loans （B）×0.77% Excess of Fees on Lending Securities Interest on Borrowing Margin Loan Exess of （Lending Fees） （B）×Funding rate （B） Stock Loan （D）×0.40% Interest on collateral money of （D） securities procure
Slide 21: 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%） 0.77% Fee 0.40% Dec
Slide 22: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 9.0% 8.75% Loan Rate Interest Rate on Collateral Money of Stock Loan 8.0% Lending Fee 7.0% Profit Margin 6.0% 5.00% 5.0% Sep-93 4.0% 3.75% Nov-10 3.0% Jan-09 2.0% May-02 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
Slide 23: 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 Number of shares issu
Slide 24: JSF Trust Bank
JSF Trust Bank As Asaatrust trustbank banksupporting supportingthe thebusiness businessinfrastructure infrastructureof ofsecurities securitiescompanies, companies, etc., JSF Trust and Banking Co., Ltd. provides customers with finely-tuned etc., JSF Trust and Banking Co., Ltd. provides customers with
Slide 25: The 3rd Mid-term Management Plan (FY2012-FY2014)
The 3rd Mid-term Management Plan（FY2012～FY2014） ・Establishsolid ・Establish solidcredibility credibility ・Retainsolid ・Retain solidequity equitycapital, capital, stable stableand andlong-term long-term returnof return ofprofits profitstotoshareholders shareholders ・Furthersolidify ・Further solidifyth
Slide 26: 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 Designated as securitiers Loansfor Loans fornegotiable negotiablemargin mar
Slide 27: Notice
Notice This document includes statements for business forecast. These statements don’t guarantee company’s future achievement and they 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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