Sbi Holdings Incorporated · TSE:8473
Sbi — Sbi Holdings Inc Ord — Q1 2021 Earnings Presentation
180 slides from Sbi's earnings presentation, Jul 30, 2021
Slide 1: SBI Holdings, Inc. Financial Results
Strategic Business Innovator SBI Holdings, Inc. Financial Results for the Three-month Period Ended June 30, 2021 (Fiscal Year Ending March 31, 2022) July 29, 2021
Slide 2: Disclaimer
The items in this document are provided as information related to the financial results and the business strategy of the SBI Group companies and not as an invitation to invest in the stock or securities issued by each company. None of the Group companies guarantees the completeness of this document
Slide 3: Agenda
I. 1Q FY2021 consolidated financial results (IFRS) and the feasibility of the new medium-term vision based on it II. New efforts to attract an international financial center to Osaka in cooperation with local governments and various other stakeholders III. SBI Group’s future business activity guidel
Slide 4: 1Q FY2021 consolidated financial results and medium-term vision
I. 1Q FY2021 consolidated financial results (IFRS) and the feasibility of the new medium-term vision based on it [Unauthorized reproduction is prohibited] 3
Slide 5: SBI Group's New Medium-Term Vision (3–5 years)
SBI Group’s New Medium-Term Vision (3–5 years) (Formulated on April 28, 2021) -Define the next 3 to 5 years as a transitional period towards the Fintech 2.0 era and endeavor to realize the new midium-term vision during that period- • Endeavor to achieve over JPY 300 billion consolidated profit befor
Slide 6: 1Q FY2021 Consolidated Performance (IFRS)
1Q FY2021 Consolidated Performance (IFRS) [Year-on-year comparison] (Unit: JPY million) 1Q FY2020 1Q FY2021 YoY % (Apr.-June 2020) (Apr.-June 2021) change Revenue 111,101 Record high *1 137,474 +23.7 Profit before income tax expense 27,757 Record high *1 33,029 +19.0 Profit for the period 20,279 Rec
Slide 7: Consolidated Performance Overview
[Consolidated Performance Overview] • Revenue increased 23.7% year-on-year to JPY 137.5bn, profit before income tax expense rose 19.0% year-on-year to JPY 33.0bn and profit attributable to owners of the Company increased 77.8% YoY to JPY 29.0bn, which were historical highs for a 1Q period • In the F
Slide 8: Profit Comparison with Major Face-to-face Securities Companies
Consolidated Profit Attributable to Owners of the Company Comparison with Major Face-to-face Securities Companies (Unit: JPY million) 1Q FY2020 1Q FY2021 YoY % (Apr. 2020 – June 2020) (Apr. 2021 – June 2021) change SBI Holdings (IFRS) 16,284 28,958 +77.8 Nomura Holdings (US-GAAP) 142,516 48,487 -66.
Slide 9: 1Q FY2021 Performance by Segment (IFRS)
1Q FY2021 Performance by Segment (IFRS) [Year-on-year comparison] Profit before Income (Unit: JPY million) Revenue Tax Expense YoY % 1Q FY2020 1Q FY2021 YoY % 1Q FY2020 1Q FY2021 change / (Apr. 2020– (Apr. 2021– (Apr. 2020– (Apr. 2021– June 2020) June 2021) change June 2020) June 2021) YoY change Fi
Slide 10: Progress Towards the New Medium-Term Vision
Summary of Progress Towards Achieving the New Medium-Term Vision (3–5 years) in View of 1Q FY2021 Consolidated Financial Results • The CAGR (Compound Annual Growth Rate) envisioned when the new medium-term vision (3–5 years) was formulated for endeavoring to achieve over JPY 300 billion consolidated
Slide 11: Overview of each core business
[Overview of each core vusiness to realize the SBI Group’s new medium-term vision] [Unauthorized reproduction is prohibited] 10
Slide 12: Economic Indicators Affecting the Group's Business (1)
Changes in Each Economic Indicators that Affect the Group’s Business (1) (Apr. 2020 – June 2021) Source: Bloomberg NY Dow (JPY / USD) 31,000 Nikkei average 21,000 NASDAQ 11,000 S&P500 1,000 TOPIX Apr. / June July / Sept. Oct. / Dec. Jan. / Mar. Apr. / June 2020 2021 Comparison of actual PER of each
Slide 13: Economic Indicators Affecting the Group's Business (2)
Changes in Each Economic Indicators that Affect the Group’s Business (2) (Apr. 2020 – June 2021) Individual brokerage trading value (quarterly total /JPY billion) 73,928 75,142 77,680 98,134 78,936 Source: The Financial Futures Amount of over-the-counter FX trading (quarterly total /JPY billion) Ass
Slide 14: Securities-related business (SBI SECURITIES)
1. Securities-related business (SBI SECURITIES) (1) Backed by an overwhelming customer base and diversified sources of revenue, SBI SECURITIES’ performance has been strong (2) Focus on six Key Performance Indicators (KPIs) for the realization of Neo-securities initiatives and efforts to improve them
Slide 15: Strong performance backed by customer base
(1) Backed by an overwhelming customer base and diversified sources of revenue, SBI SECURITIES’ performance has been strong [Unauthorized reproduction is prohibited] 14
Slide 16: SBI SECURITIES 1Q FY2021 Consolidated Results
1.(1) Securities-related business: SBI SECURITIES 1Q FY2021 Consolidated Results (J-GAAP) -Contribution from businesses other than stock brokerage commissions, such as financial revenue, underwriting and offering commissions, and trading revenue related to FX, crypto asset trading, and foreign bond
Slide 17: Focus on six KPIs for Neo-securities initiative
(2) Focus on six KPIs for the realization of Neo-securities initiative and efforts to improve them [Six key performance indicators (KPIs)] ① Share of individual stock trading value ② Deposit assets ③ Profitability (Operating income) ④ Trading revenue (as a % of total revenue) ⑤ Stock trading commiss
Slide 18: Six KPIs for Neo-securities Initiatives ①
The Six KPIs to Focus On for Promoting the Neo-securities Initiatives ① [1Q FY2021 results] Share of individual Deposit assets Operating income stock trading value (JPY trillion) (JPY million) (%) SBI *1 (cons.) 43.6 20.5 13,734 Rakuten *2 (cons.) 28.3 12.9 2,809 Matsui 10.4 2.9 3,060 au Kabucom 8.2
Slide 19: Six KPIs for Neo-securities Initiatives ②
The Six KPIs to Focus On for Promoting Neo-securities Initiatives ② (Unit: JPY million) 1Q FY2020 1Q FY2021 (Apr. 2020-June 2020) (Apr. 2021-June 2021) ④ Trading revenue 12,112 12,962 (as a % of total revenue) (34.2％) (32.1％) ⑤ Stock trading commissions other than 3,818 4,012 online trading (as a %
Slide 20: Measures to Enhance Each Indicator
Focus on Measures that Lead to Enhancement of Each Indicator ① Share of individual stock trading value Establish a system to meet diverse customer needs through the acquisition of SBI Neotrade Securities as a subsidiary and the alliance with SMBC Group, in addition to having a formidable customer ba
Slide 21: Sales Structure via SMBC Alliance and SBI Neotrade Acquisition
① Expand share of individual stock trading value Established a Sales Structure That Can Respond to Diverse Customer Needs Through the Alliance With SMBC Group and the Acquisition of SBI Neotrade Securities [Alliance with SMBC Group] [SBI Neotrade Securities] [SBI SECURITIES] × [Neo-Moba] [SBI Neotra
Slide 22: Interest Credit Balance and Financial Revenue Increased
② Initiatives for non-flow business to expand deposit assets SBI SECURITIES Interest Credit Balance and Financial Revenue / Net Financial Revenue has Increased Open Interest Credit Balance (EOM) Financial Revenue / (JPY 100 million) 11,892 (JPY million) Net Financial Revenue 12,000 10,619 11,000 10,
Slide 23: Growth in Trust Fees and Investment Trust Balance
② Initiatives for non-flow business to expand deposit assets Steady Growth in Non-flow Business, Such as Trust Fees, Due to Increase in the Balance of Investment Trusts Month-end (upper limit) balance of (JPY Investment trust balance million) regular contribution investment trusts (JPY billion) 45,0
Slide 24: Investment Trust Accumulation with Sumitomo Mitsui Card
② Initiatives for non-flow business to expand deposit assets Strong Start for Investment Trust Accumulation Service Using Credit Cards in Alliance with Sumitomo Mitsui Card • SBI SECURITIES and Sumitomo Mitsui Card launched "Sumitomo Mitsui Card Funded Investment," an investment trust savings servic
Slide 25: IPO Underwriting Involvement Share Reached 100%
③ Expand wholesale business to increase profitability SBI SECURITIES’ IPO Underwriting Involvement Share Reached 100%, the Top Share in the Industry, and the Number of Lead Managing Underwriters Progressed at a Pace Exceeding that of FY2020 Underwriting share of 100% is an • Between Apr. 2021 throug
Slide 26: Business Structure for Wholesale Business Including M&A
③ Expand wholesale business to increase profitability Establishing a Business Structure to Make Multifaceted Proposals, Including M&A, in Order to Enhance the Wholesale Business [Strengthening of underwriting business] • Will endeavor to strengthen the PO underwriting business by continuously focusi
Slide 27: SBI SECURITIES' Trading Revenue Trend
④ Expansion of trading revenue SBI SECURITIES’ Trading Revenue Trend Trading revenue significantly increased, leading to an increased contribution to earnings (JPY million) 14,000 FX-related revenue Revenue related to crypto-asset 12,962 Others (Revenue related to foreign 12,112 12,000 currency deno
Slide 28: Expanding into Real Estate Finance Business
⑤ Strengthen commission business from other than domestic stocks in order to expand brokerage commissions aside from online trading Expanding Business into the Real Estate Finance Business Field to Diversify the Lineup of Financial Instruments • In Dec. 2020, SBI Holdings acquired shares of Ascot Co
Slide 29: Foreign Stock Trading Volume Surges
⑤ Strengthen commission business from other than domestic stocks in order to expand brokerage commissions aside from online trading Foreign Stock Trading Volume of SBI SECURITIES Surges SBI SECURITIES foreign stock trading value and revenue trend Foreign Stock Trading Vokume 6.0 Revenue * Foreign st
Slide 30: Strengthening IFA Business
⑤ Strengthen commission business from other than domestic stocks in order to expand brokerage commissions aside from online trading Strengthening SBI SECURITIES’ IFA Business to Meet the Needs of Face-to-face Customer Transactions SBI SECURITIES’ IFA Business SBI SECURITIES’ IFA Business’ Revenues A
Slide 31: SBI MONEY PLAZA Co-managed Shops
⑤ Strengthen commission business from other than domestic stocks in order to expand brokerage commissions aside from online trading SBI MONEY PLAZA Has Been Able to Reach Out to Local Customers by Expanding Joint Branches Through Alliances With Regional Financial Institutions -Number of co-managed s
Slide 32: Bank related business (SBI Sumishin Net Bank)
2. Bank related business (SBI Sumishin Net Bank) (1) SBI Sumishin Net Bank has been growing rapidly as a challenger bank (2) SBI Sumishin Net Bank aspires to be a Neo bank platformer through the "Neo-bank Initiatives" toward further evolution Challenger Bank: A bank that has obtained banking license
Slide 33: Growing rapidly as a challenger bank
(1) SBI Sumishin Net Bank has been growing rapidly as a challenger bank [Unauthorized reproduction is prohibited] 32
Slide 34: SBI Sumishin Net Bank 1Q FY2021 Results
(1) SBI Sumishin Net Bank has been growing rapidly SBI Sumishin Net Bank’s 1Q FY2021 Results (Equity in earnings / IFRS) SBI Holdings’ equity in earnings of SBI Sumishin Net Bank based on IFRS for 1Q FY2021 was JPY 2,838m, up 40.3% YoY (JPY million) 3,000 2,838 2,023 2,000 YoY 1,000 +40.3% 0 1Q FY20
Slide 35: Change in Ordinary Income after Start of Operations
(1) SBI Sumishin Net Bank has been growing rapidly Change in SBI Sumishin Net Bank’s Ordinary Income (J-GAAP) after Start of Operations -Financial results for 1Q FY2021 to be announced today- (JPY million) Achieved a single month profit for the first time in Jan. 2009 Achieved a single quarter profi
Slide 36: Position in Internet Banking Industry
(1) SBI Sumishin Net Bank has been growing rapidly SBI Sumishin Net Bank’s Overwhelming Position at Internet Banking Industry The annual amount of housing loans executed is now on par with megabanks [Comparison of KPIs among internet banks] Deposits * Outstanding loans Ordinary income Name (JPY tril
Slide 37: Deposit Balance Ranking Among 74 Banks
(1) SBI Sumishin Net Bank has been growing rapidly The Balance of Deposits of SBI Sumishin Net Bank Ranked 17th among 74 Banks, which Includes Regional Banks and New Entrant Banks (JPY billion) (*As of the end of Mar. 2021. Ranking by deposits unconsolidated financial (Regional Banks, New Entrant Ba
Slide 38: Expanding Housing Loan Volume
(1) SBI Sumishin Net Bank has been growing rapidly Accelerating the Expansion of the Volume of Housing Loan Products with Attractive Interest Rates and High Customer Benefits (*1) Change in Balance of Housing Loans (End of Mar. 2008 – End of June 2021) *1 Repayments deducted from cumulative total of
Slide 39: Neo-bank Initiatives Platform Aspiration
(2) Aspiring to become a platform for Neo Bank through the "Neo-bank Initiatives" for further evolution About the Neo-bank Initiatives: Customers using business services of partner companies also have access to ancillary banking functions from SBI Sumishin Net Bank. SBI Sumishin Net Bank works with
Slide 40: Neo-bank Initiatives Coming to Fruition
(2) the "Neo-bank Initiatives" The “Neo-bank Initiatives” is Coming to Fruition -Aspiring to become a platform for Neo Bank through alliances- Hikari Tsushin CCC Group New Japan Group EPARK Group Airlines New partners to be announced soon ICT Service YAMADA Partner regional HOLDINGS Real financial T
Slide 41: JAL NEOBANK
(2) the "Neo-bank Initiatives" The First Project in the "Neo-bank Initiative," the "JAL NEOBANK," which is an Exclusive Banking Service for JAL MILEAGE BANK Members • Banking service provided by Japan Airlines Co., Ltd. utilizing cutting-edge IT technology of SBI Sumishin Net Bank • By opening a ded
Slide 42: T NEOBANK for T-Point Members
(2) the "Neo-bank Initiatives" Start of the Second Project in the “Neo-bank Initiatives,” “T NEOBANK,” which is an Exclusive Banking Service for “T-Point Members” • A banking service provided by SBI Sumishin Net Bank and CCC Group’s T-MONEY exclusively for approximately 70 million T-members • The se
Slide 43: YAMADA NEOBANK
(2) the "Neo-bank Initiatives" The Third Project in the "Neo-bank Initiative," "YAMADA NEOBANK," which is a Banking Service for YAMADA HD Customers, Started July 1, 2021 • Banking services for approx. 60 million YAMADA Group customers provided by SBI Sumishin Net Bank and YAMADA HD subsidiary • In a
Slide 44: Insurance-related business (SBI Insurance Group)
(3) Insurance-related business (SBI Insurance Group) (1) SBI Insurance Group performance growing due to steady increase in the total number of in-force contracts and premiums (2) Further strengthen profitability through measures to expand the business base and promote initiatives to improve business
Slide 45: Performance growing with in-force contracts and premiums
(1) SBI Insurance Group performance growing due to steady increase in the total number of in-force contracts and premiums [Unauthorized reproduction is prohibited] 44
Slide 46: SBI Insurance Group's Performance (Preliminary)
3.(1) SBI Insurance Group performance growing due to steady increase in the total number of in- force contracts and premiums SBI Insurance Group’s Performance (Preliminary Figures) * Final consolidated figures for 1Q FY2021 to be released on Aug. 10 Consolidated Results for 1Q FY2021 (J-GAAP) (Unit:
Slide 47: Total In-force Contracts Steadily Increased
3.(1) SBI Insurance Group performance growing due to steady increase in the total number of in- force contracts and premiums SBI Insurance Group’s Total Number of In-force Contracts Steadily Increased SBI Insurance Group’s total number of in-force contracts (10 thousands) CAGR 15.5% JOGUCHI SAFETY S
Slide 48: Premium Income Increases Steadily
3.(1) SBI Insurance Group performance growing due to steady increase in the total number of in- force contracts and premiums SBI Insurance Group’s Premium Income Increases Steadily (Unit: JPY million) Comparison of premium revenue*1 trends with competitors 120,000 CAGR since the start of SBI Insuran
Slide 49: Strengthen Profitability Through Business Base Expansion
(2) Further strengthen profitability through measures to expand the business base and promoting initiatives to improve business efficiency ① Expansion of customer base through active promotion of M&As ② Differentiation through further strengthening of synergies within and outside the Group and new m
Slide 50: Expansion of customer base through M&As
① Expansion of customer base through active promotion of M&As [Unauthorized reproduction is prohibited] 49
Slide 51: Small-amount Short-term Insurance Providers Acquired via M&A
3.(1)-① Expansion of customer base through active promotion of M&As Small-amount Short-term Insurance Providers Acquired through M&A Have a Wide Range of Products from Life Insurance, Non-life Insurance to Third Market, which Allows SBI Insurance Group to Have an Expansive Strategy Non-life Insuranc
Slide 52: Acquired Insurers Accelerate Growth After Joining
3.(1)-① Expansion of customer base through active promotion of M&As Small-amount Short-term Insurance Providers Acquired through M&As have Seen their Growth Accelerate Since Joining the Group SBI IKIIKI SSI SBI PRISM SSI Number of in-force contracts Number of in-force contracts exceeded 150,000 in J
Slide 53: Differentiation through synergies
② Differentiation through further strengthening of synergies within and outside the Group and new mechanisms [Unauthorized reproduction is prohibited] 52
Slide 54: Synergies within the SBI Group (1)
3.(1)-② Differentiation through further strengthening of synergies within and outside the Group and new mechanisms Synergies within The SBI Group (1) -Creating synergies with the insurance business through SBI Sumishin Net Bank’s housing loan business- SBI Insurance Apri. 2021 - June 2021 Fire insur
Slide 55: Synergies within the SBI Group (2)
3.(1)-② Differentiation through further strengthening of synergies within and outside the Group and new mechanisms Synergies within the SBI Group (2) -The SBI Group’s Insurance Comparison Sites, SBI SECURITIES, and Other Group Companies Leverage Their Customer Bases to Create Synergies by Becoming S
Slide 56: Expanding Sales Channels Through Alliances
3.(1)-② Differentiation through further strengthening of synergies within and outside the Group and new mechanisms SBI Insurance Group Companies Strengthen Their Customer Bases by Expanding Sales Channels and Services through Alliances Not Only with Group Companies, but also with Companies in Variou
Slide 57: Joint Group Credit Life Insurance Scheme
3.(1)-② Differentiation through further strengthening of synergies within and outside the Group and new mechanisms SBI Life Insurance Endeavors for Efficient Business Operations through Synergies by providing Japan’s First Joint Scheme of Group Credit Life Insurance to Financial Institutions, which
Slide 58: Improve operational efficiency via InsurTech
③ Further improve operational efficiency by promoting InsurTech [Unauthorized reproduction is prohibited] 57
Slide 59: Promoting InsurTech with Investee Technologies
3. (1)-③ Further improve business efficiency by promoting InsurTech The Group Promotes InsurTech and Targets to Improve Business Efficiency by Introducing Technologies from Our Investee Companies Example: DataRobot, Inc. Started using “DataRobot” tools within Provide "AI Success Program," a support
Slide 60: New DX-Based Initiatives
3. (1)-③ Further improve business efficiency by promoting InsurTech The SBI Insurance Group Has Started New DX-Based Initiatives SBI Insurance (Automobile insurance) launched apps for (Fire insurance) introduced first AI system for smartphones named "SBI Insurance policyholder receiving calls regard
Slide 61: Asset Management Business
4. Asset Management Business (1) Valuation gain on unlisted stocks and the overseas financial services business contributed significantly to raising the segment’s profits (2) Expand assets smoothly in order to achieve future performance and medium-term vision for individual Asset Management business
Slide 62: Valuation gain on unlisted stocks and overseas financial services
(1) Valuation gain on unlisted stocks and the overseas financial services business contributed significantly to raising segment profits • Profit/loss from the change in fair value and profit/loss on the sale of investment securities for portfolio companies during April-June 2021 quarter decreased fr
Slide 63: Asset Management Business 1Q FY2021 Performance Overview
(1) Asset Management Business’ Performance Overview Asset Management Business’ 1Q FY2021 Performance Overview (IFRS) (IFRS, JPY billion) 1Q FY2020 1Q FY2021 YoY % (Apr.-June 2020) (Apr.-June 2021) change Revenue 39.7 47.7 +20.0 Profit before income tax expense 12.0 15.7 +31.0 SBI SAVINGS BANK 4.5 8.
Slide 64: Net Income of SBI SAVINGS BANK
SBI SAVINGS BANK Net Income of SBI SAVINGS BANK - Earnings are on track to surpass the previous year’s record high - Net income for 2Q exceeded KRW 100 <Jan. to June 2021 / K-GAAP> bn for the first time (KRW billion) on a quarterly basis 193.6 133.6 +44.9% 2Q 107.1 65.5 86.5 1Q 68.1 1H FY2020 1H FY2
Slide 65: Morningstar's Asset Management Business Expanded
Morningstar Japan Morningstar’s Asset Management Business has Expanded Steadily - Significant contribution from expansion of investment contracts from regional financial institutions, etc.- <Operating income in the AM business (Quarterly trends)> (JPY million) 400 355 (YoY +67%) 335 309 300 239 212
Slide 66: Expand assets to achieve medium-term vision
(2) Expand assets smoothly in order to achieve future performance and medium-term vision for individual AM business ① Private Equity (PE) business ② Overseas financial services business ③ Asset Management business [Unauthorized reproduction is prohibited] 65
Slide 67: Private Equity (PE) Business
① Private Equity (PE) Business • Between April and June 2021, among investee companies, 5 companies were taken public under an IPO and 1 company was subject to M&A, and from July 2021 onward, several other exits planned for other investee companies. High performance of management funds is expected d
Slide 68: Major Funds Operated by SBI Investment
① PE Business Major Funds Operated by SBI Investment Have Entered a Virtuous Cycle, and Investment Recovery Through IPO of Investee Companies and New Investment From New Funds have Expanded Investors from many regional financial institutions, institutional investors, major financial institutions, ma
Slide 69: Investee IPOs and M&A During the Quarter
① PE Business Among the Investee Companies, 5 Companies Were Taken Public Under an IPO and 1 Company was Subject to M&A During the Quarter; From 2Q Onward, Several Other Exits Planned for Other Investee Companies During the fiscal year, 5 IPOs and 1 M&A events for investee companies EXIT Date Compan
Slide 70: Managed Funds Expected Performance via SPACs
① PE Business High Performance of Managed Funds Expected Through the Use of SPACs, Which Has Been Rapidly Increasing in the US in Recent Years ＜Trend of IPO and SPAC listings on the US stock market*＞ 151 In April 2021, SEC strengthened disclosure rules for investor protection, 132 resulting in revie
Slide 71: CVC Fund Commitments Accumulated
① PE Business SBI Investment’s CVC Fund, Which Commenced Operations in 2016, Has Steadily Accumulated Investment Commitments and Now Has Total Commitment of JPY 100bn, Making It One of the Largest CVC Funds* in Japan List of CVCs established by SBI Investment in collaboration with business corporati
Slide 72: CVC Fund Total Committed Amount to Reach JPY 100bn
① PE Business CVC Fund’s Total Committed Amount to Reach JPY 100bn -Endeavor to Further Increase the Fund Size through Alliances Announced on with Business Corporations- July 15, 2021 (JPY billion) JPY 5bn Total commitment amount SUMITOMO LIFE INSURANCE COMPANY JPY 10bn JPY 5bn JPY 8bn 100 90 JPY 10
Slide 73: Joint Fund to Support Local Businesses: Capital Fund
① PE Business Establishment of a Joint Fund to Support Local Businesses ① Capital fund THE TOWA BANK Promoting the revitalization of local companies by strengthening the financial intermediary function through the provision of capital through a joint fund, thereby minimizing the risk of bank lendi
Slide 74: Joint Fund: Invest into Venture Companies
① PE Business Establishment of a Joint Fund to Support Local Businesses ② Invest into venture companies Tsukuba Bank Tsukuba Bank and SBI Group companies have been working to commercialize various seeds and support company growth in the bank’s area of business centered on Tsukuba City, known as th
Slide 75: SBI Regional Business Succession Fund
① PE Business Established the SBI Regional Business Succession Fund and Began Full-scale Investing Activities in Order to Support Business Succession Nationwide -Establishing subsequent funds to expand total fund size to approx. JPY 100bn at an early date- In March 2020, made first investment into
Slide 76: Overseas financial service business
② Overseas financial service business • In the overseas financial services business, owing to contributions from the SBI SAVINGS BANK of South Korea and the TP Bank of Vietnam, among others, contributed significantly to raising the segment’s profit • Based on the settlement of accounts for the fisca
Slide 77: SBI SAVINGS BANK's Underlying Earnings Increased
② Overseas financial service business: SBI SAVINGS BANK SBI SAVINGS BANK’s Underlying Earnings have Increased Steadily, as Its Prime Assets have Grown Changes in Indicators since becoming Total assets exceed KRW 11tn as of the end of Dec. 2020 a subsidiary(K-GAAP) (KRW bn) Delinquency rate for all l
Slide 78: Cider Bank Mobile Financial Service
② Overseas financial service business: SBI SAVINGS BANK "Cider Bank," a Mobile Financial Service Launched in June 2019, has Contributed Significantly to the Expansion of the Customer Base Changes in the number of accounts (Cider Bank) 487,354 500,000 400,000 • Customer-friendly UI design • Account o
Slide 79: FPT Securities and TP Bank Valuation Gains
② Overseas Financial Services Business: Benefitting from economic growth in each country through investment in financial institutions in Asia Vietnam’s FPT Securities and TP Bank Continue to Post Valuation Gains as Earnings Expand Steadily (Listed in January 2017) (Listed in April 2018) Invested s
Slide 80: Investments in Russia's SBI Bank
② Overseas Financial Services Business: Benefitting from economic growth in each country through investment in financial institutions in Asia Russian Sovereign Wealth Fund RDIF*1 and Japan’s JBIC IG Partners*2 have Invested in Russia’s SBI Bank to Promote Business Expansion Between Japan and Russia
Slide 81: Financial Subsidiaries in Thailand and Cambodia
② Overseas Financial Services Business: Benefitting from economic growth in each country through investment in financial institutions in Asia Business Foundation for Financial Subsidiaries in Thailand and Cambodia Expands Rapidly SBI LY HOUR Bank Made a subsidiary in December 2019 Established in
Slide 82: Asset management business
③ Asset management business • In response to the growing need for regional financial institutions to manage securities through portfolio optimization and higher sophistication, we aim to increase AUM from them and further increase the overall AUM by the Group [Unauthorized reproduction is prohibited
Slide 83: Japanese Market Attractive to Money Managers
③ Asset management business Japanese Market Attractive to Money Managers Around the World Japan has an enormous amount of personal financial assets valued at JPY 1,946tn If 20% of the "cash and deposits," which account for more than 54% of personal financial assets, were transferred to pension f
Slide 84: Opportunity in Regional Financial Institution Mandates
③ Asset management business Tremendous Opportunity to Expand Investment Management Contracts from Regional Financial Institutions -Demand among regional financial institutions for outsourcing of more sophisticated and diversified securities management is growing- Factors that are increasing the need
Slide 85: SBIAMG Entrusted by 95 Regional Financial Institutions
③ Asset management business SBI Asset Management Group (SBIAMG) is Entrusted with Asset Management of 95 Regional Financial Institutions -Providing investment products that leverage the strength of the Group’s global network- <Number of regional financial institutions ＜Composition of investment prod
Slide 86: AUM from Regional Financial Institutions Surpassed JPY 2 trillion
③ Asset management business Balance of AUM from Regional Financial Institutions Surpassed JPY 2 trillion SBI Bond Investment Management (co-founded with PIMCO, one of the world’s largest bond investors) and SBI Regional Revitalization Asset Management, which is co-invested by 39 regional financial
Slide 87: Fourth in Private Placement Investment Trust Inflows
③ Asset management business SBI Asset Management Group Ranked Fourth in terms of Cumulative Inflows of Privately Placed Investment Trusts over the Past Year, ahead of Major Foreign and Japanese Firms Cumulative inflows of privately placed investment trusts (July 2020 – June 2021) (JPY billion) Rank
Slide 88: SBI・V・S&P500 Index Fund
③ Asset management business SBI・V・S&P500 Index Fund, which was Co-founded with Vanguard Inc. of the United States in September 2019, is a Big Leap Forward (USD billion) 「SBI・V・S&P500 Index Fund」 Changes in net assets 242.8 Trust fee ratio: 0.0938% Balance of net assets: JPY 271.1bn (As of July 26, 2
Slide 89: AUM Increased in Public and Private Placements
③ Asset management business SBI Asset Management Group has Steadily Increased AUM in Both Public and Private Placements -Balance of investment assets exceeds JPY 3.2tn- AUM from institutional investors, mainly regional financial institutions, is (JPY bn) JPY 2,039.8bn 3,201.8 3,000 SBI Regional Revi
Slide 90: Group AUM Increase Toward JPY 10tn
③ Asset management business Steady Increase in the Balance of AUM of the Entire SBI Group, Including Private Equity, toward the Level of More than JPY 10tn (JPY bn) 5,000 4,800 Investment trusts, etc. 4,439 Announced that Rheos 4,000 Capital works had become Private equity, etc. a subsidiary in Mar.
Slide 91: Biotechnology, Healthcare & Medical Informatics Business
5. Biotechnology, Healthcare & Medical Informatics Business (1) Milestone revenues and strong sales of 5- ALA-related products contributed significantly to the narrowing of the segment’s operating loss (2) Accelerate development of new businesses such as research and products for the "with COVID-19"
Slide 92: Milestone revenues and 5-ALA sales narrowed operating loss
(1) Milestone revenues and strong sales of 5-ALA- related products contributed significantly to the narrowing of the segment’s operating loss [Unauthorized reproduction is prohibited] 91
Slide 93: Biotechnology, Healthcare & Medical Informatics Performance
(1) 1Q FY2021 performance overview: Profit before Income Tax Expense of the Biotechnology, Healthcare & Medical Informatics Business Companies (IFRS) (JPY million) 1Q FY2020 1Q FY2021 (Apr. - June 2020) (Apr. - June 2021) SBI Biotech -86 458 Quark Pharmaceuticals (“Quark”) -945 -749 5 business relat
Slide 94: SBI ALApromo Sales and Profit Increase
SBI ALApromo Achieved Significant Increase in Sales and Profits *IFRS, Unit: JPY million Sales 459 SBI ALApromo’s products containing 5-ALA 500 400 246 • "ALA PLUS" products such as "ALA PLUS Toh 300 (Sugar) Down" and "ALA PLUS GOLD" contain an amino acid called 5-aminolevulinic acid 200 phosphate (
Slide 95: New businesses for the with COVID-19 era
(2) Accelerate development of new businesses such as research and products for the "with COVID-19" era [Unauthorized reproduction is prohibited] 94
Slide 96: Published Papers on COVID-19 and 5-ALA
① 5-ALA-related business Published Papers on COVID-19 and 5-ALA A paper on the infection-suppressing effect of 5-ALA on the new coronavirus by cell culture experiments was submitted by the Institute of Tropical Medicine, Nagasaki University, and the pre-print became available on the bioRxiv site (
Slide 97: SBI ALApromo Strong Product Sales in July
① 5-ALA-related business SBI ALApromo Saw Strong Sales of Each Product in July due to Heightened Health Consciousness Under COVID-19 Pandemic SBI ALApromo’s monthly sales Expand product lineup forecast for July 2021 from the second quarter onward (compared to results in July 2020) *July in 2020 inde
Slide 98: Foods with Functional Claims Lineup
① 5-ALA-related business Future Lineup of Foods with Functional Claims and Notification Status Products that have been notified and approved by the Consumer Affairs Agency based on "the system of Foods with Functional Claims" Increase metabolism while "ALA PLUS Toh (Sugar) Down ALACIA" suppressing
Slide 99: Investment in Healthcare Venture Companies
② Toward the development of promising business fields (Expanding investment in areas centered on healthcare) The SBI Group is Expanding Investment in Venture Companies that are expected to Innovate the Medical Field = IPO’d Areas centered on health care Prevention / Long-term Health Promotion diagno
Slide 100: Medical Data Vision and Medical Informatics Business
② Toward the development of promising business fields (Newly Entire into Medical Informatics Business) Strengthen the Medical Informatics Business, Considered to be a Future Growth Area, by making Medical Data Vision ("MDV") an Affiliated company under the Equity Method Synergy System development re
Slide 101: New Service Health Account
② Toward the development of promising business fields (Promoting the “Health Account” business) New Service "Health Account" to Prepare for Future Medical and Nursing Expenses -Expanding the solution to regional financial institutions- ① Deferred payment service for medical expense When sick Medic
Slide 102: Collaboration with MEDIPAL HOLDINGS
② Toward the development of promising business fields (Expanding cooperation with alliance partners) Expanding Collaboration With MEDIPAL HOLDINGS CORPORATION, the Largest Pharmaceutical Wholesaler, Which Co-founded a CVC Fund With SBI Investment Synergy Largest Pharmaceutical Wholesaler • MEDIPAL I
Slide 103: Digital asset-related businesses
6. Digital asset-related businesses -Development of various services utilizing blockchain and distributed ledger technology (DLT) in the SBI Group and progress in monetizing these services- (1) Overview of crypto asset-related business (2) Initiatives for next-generation financial products and servi
Slide 104: Overview of crypto asset-related business
(1) Overview of crypto asset-related business [Unauthorized reproduction is prohibited] 103
Slide 105: Crypto Asset Business Strengthened Through M&A
Measures Taken to Strengthen Business Structure and Profitability Through Aggressive M&A Activities in the Crypto-Asset-Related Business -Leverage group synergies centered on B2C2 which became a consolidated subsidiary in December 2020- Crypto asset-related business -Financial Results for 1Q FY2021
Slide 106: Expansion and Enhancement of Crypto Services
In the SBI Group’s Crypto Asset-related Business, Promote Expansion and Enhancement of Services Provided SBI VC Trade Newly listed Bitcoin Cash (BCH) and Litecoin (LTC) on the VCTRADE Pro exchange on May 27, 2021. Considering adding more cryptocurrencies Currencies that can be traded on VCTRADE Pro
Slide 107: Next-generation financial products and services
(2) Initiatives for next-generation financial products and services ① Security token (ST) ② Non-fungible token (NFT) ③ Decentralized Finance (DeFi) ④ Central Bank Digital Currency (CBDC) ⑤ Crypto asset inclusion funds ⑥ SBI Financial and Economic Research Institute [Unauthorized reproduction is proh
Slide 108: How SBI Group Views the Fintech Revolution
How the SBI Group Views the Revolution of Fintech -The world of Fintech 2.0 will expand dramatically over the next 3 to 5 years- • A digital financial ecosystem that provides innovative financial services <Fintech 2.0> • with blockchain as the core technology Advanced elemental technologies will Cur
Slide 109: Vision of the Fintech 2.0 Era
SBI Group’s Vision of the Near Future in the Fintech 2.0 Era -The SBI Group will transform itself into a new digital financial ecosystem by organically combining new technologies with the online financial ecosystem that it has cultivated since its founding in 1999- DLT・Smart Contract International D
Slide 110: New Financial Products and Services at a Glance
New Financial Products and Services - At a Glance Security Token Offerings are Decentralized Finance (DeFi) are expanding globally and across financial services provided by programs multiple industries, with at least 123 that run automatically on a block- projects established worldwide chain. The to
Slide 111: Security Token (ST)
① Security Token (ST) (i) The nature of ST as next-generation financial product and examples of its practical application (ii) SBI Group’s initiatives towards the establishment of a global secondary market for STs [Unauthorized reproduction is prohibited] 110
Slide 112: Security Tokens - Definition and Form
(i) ST: the next-generation financial product Security Tokens (ST) - Definition and Form • Security tokens, also known as digital securities, are tokens issued on DLT that have the requirements of securities and allow for the transfer of rights through the transfer of said tokens. It is characterize
Slide 113: Security Tokens - Transition
(i) ST: the next-generation financial product Security Tokens (ST) - Transition Initial Coin Offering (ICO), which spread rapidly from 2017 to 2018, is now at the stage of practical use as STO after legal changes [SBI SECURITIES] Apr. 2020 FSA certifies Japan STO Association as a self- regulatory or
Slide 114: Case ①: SBI e-Sports STO
(i) ST: the next-generation financial product Case ①: Third-party Allocation of New Shares by SBI e-Sports Via an STO (October 30, 2020) - The issuance of security tokens in full compliance with the Financial Instruments and Exchange Act with securities appearing on the tokens - Issuance of digital
Slide 115: Case ②: First STO for General Investors
(i) ST: the next-generation financial product April Case ②: SBI SECURITIES Announced the First STO in Japan for General Investors in Collaboration with BOOSTRY, etc. • SBI SECURITIES announced the first security token offering (STO) for general investors in Japan on April 19, 2021. The issuance and
Slide 116: Case ③: First Public Offering of Asset-backed ST
(i) ST: the next-generation financial product Case ③: SBI SECURITIES Conducts the First Public Offering of Asset-backed ST in Japan • Public offering of asset-backed ST, with real estate as the underlying asset, in collaboration with Mitsubishi UFJ Trust and Banking, KENEDIX, and NOMURA SECURITIES •
Slide 117: STO Benefits for Issuers, Investors, Regulators
(i) ST: the next-generation financial product STO is Expected to Benefit All Stakeholders, Including Issuers, Investors, and Regulators Issuer Investor Regulator • Issued as securities B • Not as burdensome as an • Access to previously under the Financial IPO, and can raise a certain unavailable inv
Slide 118: Global secondary market for STs
(ii) SBI Group’s initiatives towards the establishment of a global secondary market for STs [Unauthorized reproduction is prohibited] 117
Slide 119: Singapore Digital Asset Exchange with SIX Digital Exchange
Endeavor Towards Establishing a Singapore-Based Digital Asset Exchange with SIX Digital Exchange of Switzerland SIX Digital Exchange Investment Investment A member of the SIX Group, which operates the SIX Swiss Exchange, one of the world’s Joint Venture leading stock exchanges, and Digital Exchange
Slide 120: Investment in Boerse Stuttgart Group
The SBI Group Invested in the Boerse Stuttgart Stock Exchange Group of Germany Operates the second largest securities exchange in Germany Invested (investment ratio: 10%) Germany’s first digital asset exchange in compliance with German banking law Planned investment Digital investment company of the
Slide 121: Global Organizational Response to Next-Generation Finance
SBI Group’s Global Organizational Response to Next-Generation Finance -Established SBI Digital Asset Holdings, Inc. as a core company to achieve dramatic growth in digital asset-related businesses- Exchange (Distribution) Global business in (Europe, Singapore, etc.) cooperation with SIX SBI Digital
Slide 122: Creating the World's Largest Global Corridors
Endeavour Towards Creating the World’s Largest Global Corridors Endeavor to create one of the world’s largest digital asset exchange by interconnecting ODX with the Boerse Stuttgart Group, Swiss SIX Group, and the digital exchange that will be established in Singapore with the SIX Group, etc. • Bo
Slide 123: Non-fungible token (NFT)
② Non-fungible token (NFT) [Unauthorized reproduction is prohibited] 122
Slide 124: SBI Art Auction Promotes the Use of NFT
② NFT SBI Art Auction Promotes the Use of NFT, the New Financial Asset What is NFT: Tokens that use blockchain and distributed ledger technology (DLT) to give uniqueness, authenticity, and permanence to digital works of art and in- game items SBI Art Auction has partnered with Startbahn, Inc. to i
Slide 125: NFT Used in Various Fields Globally
② NFT As a Global Trend, NFT Has Already Begun to Be Used in Various Fields Despite the Challenges, and Market Scale Is Rapidly Expanding Domain Object to be tokenized Advantages of using NFT Service examples • Hashmasks (digital art) Artwork Images, video, audio Protects the right to distribute the
Slide 126: Decentralized Finance (DeFi)
③ Decentralized Finance (DeFi) [Unauthorized reproduction is prohibited] 125
Slide 127: Potential of DeFi Business in the SBI Group
The Potential of DeFi Business in the SBI Group - Under the concept of open alliances, seek to develop various DeFi businesses not only through Group synergies, but also through collaboration with investees, partners, etc. - Preparing to establish the DeFi Ecosystem Group Companies Group investee co
Slide 128: Regulators and Bank of Japan Watching DeFi
Regulators and the Bank of Japan are Also Keeping a Close Eye on the Future of DeFi • The Bank of Japan’s Payment and Settlement Systems Department discloses a review on potential benefits, regulatory issues, and risks for DeFi (April 2021) Potential ・ Possibility to encourage competition Issues ・ U
Slide 129: Central Bank Digital Currency (CBDC)
④ Central Bank Digital Currency (CBDC) [Unauthorized reproduction is prohibited] 128
Slide 130: Digital Chinese Yuan (E-CNY) Characteristics
④ CBDC Characteristics of the Leading Central Bank Digital Currency in China, the Digital Chinese Yuan (E-CNY) <The proof-of-concept is proceeding at a rapid pace across China> The People's Bank of China started research on the E-CNY in 2014 and started official development on 2017. As of Jun 2021,
Slide 131: CBDC Attitudes in the U.S. and Europe
④ CBDC In the U.S. and Europe, the Attitude Toward CBDCs has Changed Significantly due to Various Considerations Although the euro has the second largest market share after the U.S. dollar in terms of trading volume and foreign exchange reserves, Europe's finance, economy and sovereignty itself ar
Slide 132: Bank of Japan PoC and CBDC Interest
④ CBDC As the Bank of Japan has Started a PoC and Interest Towards CBDC (Central Bank Digital Currency) is Rising in Japan, Financial Service Providers will also be Required to Make Changes Japanese Government Bank of Japan ・ On July 20, 2020, a new "Digital Currency Group," a In the “Framework Poli
Slide 133: Japan's First Crypto Asset Fund
⑤ Establishment of Japan’s first “Crypto Asset Fund” (Anonymous Association) - Scheduled to begin in the fall of 2021 - Providing individual investors with a Crypto Asset Fund that brings together the resources of the SBI Group Crypto assets maintain low correlation to traditional asset classes
Slide 134: SBI Financial and Economic Research Institute
⑥ SBI Financial and Economic Research Institute [Unauthorized reproduction is prohibited] 133
Slide 135: Established SBI Financial and Economic Research Institute
Established SBI Financial and Economic Research Institute to Conduct Surveys, Research, and Policy Proposals Centering on Digital Assets Reconstructed SBI Graduate School Financial Research Institute (Opened on Oct. 1, 2016) to SBI Financial Research Institute on Apr. 1, 2021 In light of the recent
Slide 136: Structure of the Research Institute
Structure of the SBI Financial and Economic Research Institute Takako Masai, a SBI Financial and former member of BoD the Bank of Japan’s Economic Research Policy Board, was Organizing office Institute invited as a director in June 2021 1.Digital Finance Research Group 2.Digital Financial Infrastruc
Slide 137: DLT-based services improving operational efficiency
(3) SBI Group focus on providing DLT-based services that contribute to improving operational efficiency in various fields, including supply chain management ① Use of U.S. R3’s Corda and domestic expansion through JV ② U.S. Ripple’s DLT ③ Next-generation financial products and services, with R3 and R
Slide 138: Cooperation with R3 and Ripple
The SBI Group has Cooperated with 2 U.S. Companies (R3・Ripple) to Promote Practical use of Cutting-Edge Technologies such as Blockchain and Distributed Ledger Technology (DLT) Several projects have been developed by participating companies from Investment various industries utilizing technology base
Slide 139: Use of R3's Corda and JV expansion
① Use of U.S. R3’s Corda and domestic expansion through JV (i) Trials and commercialization of Corda inside and outside the Group (ii) Activities of SBI R3 Japan, a JV with R3 [Unauthorized reproduction is prohibited] 138
Slide 140: Expanding Use Cases of Corda Globally
(i) Trials and commercialization of Corda inside and outside the Group Expanding Use Cases of Corda Globally Marco Polo： Trade Finance (Open Account Transactions) Trade finance (LC transactions) Trade and 35 major financial institutions 27 major financial institutions including HSBC, Standard Charte
Slide 141: Corda Improves Operational Efficiency in the Group
(i) Trials and commercialization of Corda inside and outside the Group Corda Improves the Operational Efficiency within the SBI Group’s Financial Business and Supply Chain Business SBI Liquidity Market commercialize Japan’s first practical application of an FX confirmation system "BCPostTrade" based
Slide 142: Supporting Digital Currency Issuance in Multiple Regions
(i) Trials and commercialization of Corda inside and outside the Group SBI Group Supports Digital Currency Issuance in Multiple Regions [Chikuho Bank] [Kyushu Electric Power] "TOKOWAKA Coin" Premium electronic "Dazaifu Pay" "Hita Pay" (Hita City, (Munakata City, regional coupons (Dazaifu City, Oita
Slide 143: Machi no Wa Regional Information Platform
(i) Trials and commercialization of Corda inside and outside the Group "Machi no Wa Co., Ltd." Jointly Established with The Chikuho Bank and Kyushu Electric Power, Provides a Nationwide Information Platform for Issuing and Operating Digital Gift Certificates and Local Points Utilizing R3’s DLT in Co
Slide 144: Digital Currency at Osaka-Kansai World Exposition
(i) Trials and commercialization of Corda inside and outside the Group Use of Digital Currency at Osaka-Kansai World Exposition -At the Osaka-Kansai World Exposition to be held on Yumeshima (Osaka City, Osaka Prefecture) from April 13, 2025 to October 13, 2025, plans are underway to propose a paymen
Slide 145: Corda Enterprise for TBLOCK SIGN
(i) Trials and commercialization of Corda inside and outside the Group SBI R3 Japan Provides Corda Enterprise to Toyota Tsusho Systems’ Electronic Contract Service TBLOCK SIGN ① Required to take measures to enable e-commerce even in data-regulated countries (global support) ② Support required for el
Slide 146: U.S. Ripple's DLT
② U.S. Ripple’s DLT (i) Money Tap offers next-generation financial infrastructure (ii) SBI Remit leverages Ripple’s solutions for international money remittance [Unauthorized reproduction is prohibited] 145
Slide 147: Ripple Next-Generation International Remittance Infrastructure
(i) Money Tap Ripple in the U.S. has Developed and Provides Next-Generation International Remittance Infrastructure using Digital Assets May 2016 January 2019 Establishment of SBI Ripple Asia Number of participating financial (investment share of SBI Group: 60%) institutions in RippleNet exceeds 200
Slide 148: Ripple Investment Accelerates Service Introduction
(i) Money Tap Investment from Ripple Accelerates the Introduction of Service to Regional Financial Institutions, as well as the Development of New Services 38 regional Banks etc. Invest The Ashikaga Bank, The Awa Bank, EHIME BANK, Kita-Nippon Bank, Kiraboshi Bank, The Gunma Bank, TheKeiyoBank, THE S
Slide 149: Money Tap Collaborating with Financial Institutions
(i) Money Tap Money Tap Collaborating with Financial Institutions for a Win-Win Service Offering -Provide a variety of financial services connected by Money Tap to financial institutions P2P (remittance connected to Money Tap’s API- between individuals) P2B Individual user 38 financial institutions
Slide 150: SBI Remit International Remittance in Southeast Asia
(ii) SBI Remit SBI Remit Develops International Remittance Utilizing Ripple Solution in Southeast Asia The first Ripple corridor in Vietnam (SBI Group investment ratio of 19.9%) Started remittance service between Japan and Vietnam with TP Bank on Nov. 15, 2019 NEW (Provides solution) The first Rippl
Slide 151: International Money Transfer Using Crypto Assets
(ii) SBI Remit SBI Remit Deploys Japan’s First International Money Transfer Service Using Crypto Assets • Launched a new service using Ripple’s payment infrastructure and the digital asset XRP for international remittances from Japan to the Philippines in collaboration with SBI VC Trade and SBI Ripp
Slide 152: CBDC with R3 and Ripple
③ Next-generation financial products and services, with R3 and Ripple • R3 launched the CBDC working group, bringing together central banks, private banks, exchanges, technology companies, and payments companies to understand the technology, policies, and R3 implications for issuing a central bank d
Slide 153: Proactively Utilize M&A to Expand Business Base
7. Proactively Utilize M&A to Further Expand the Business Base Part of the funds raised through the latest issuance of corporate bonds (straight corporate bonds of JPY 80bn, MTN bonds of JPY 30bn) will be used for future growth investment, including M&A [Unauthorized reproduction is prohibited] 152
Slide 154: Selecting M&A Targets for Discontinuous Growth
Selecting M&A Targets to Create Discontinuous Growth for the SBI Group The SBI Group’s current approach for M&A activities • M&A targets for future-focused objectives such as strengthening competitiveness through synergistic effects with existing businesses and cross-evolution, expanding economic
Slide 155: Attracting International Financial Center to Osaka
II. New efforts to attract the international financial center to Osaka in cooperation with local governments and various other stakeholder 1. As the core of the next generation international financial center, two exchanges are making steady progress in their efforts under the support of SBI and join
Slide 156: Creating the Next-Generation International Financial Center
SBI Group’s provision for Creating the Next- Generation International Financial Center and Efforts to Achieve them New global financial markets New global financial products Proactive use of new technologies Full support for Dojima Formation of a cluster Establishment of the Exchange to become
Slide 157: Two exchanges as core of financial center
1. As the core of the next generation international financial center, two exchanges are making steady progress in their efforts under the support of SBI and joint investment from domestic and foreign financial institutions [Unauthorized reproduction is prohibited] 156
Slide 158: Support for Dojima Exchange and Osaka Digital Exchange
SBI Group Provides Capital and Business Support for Dojima Exchange and Osaka Digital Exchange -Accelerate globalization of the Dojima Exchange and the Osaka Digital Exchange by attracting funds and human resources through the participation of overseas firms, through capital support by the SBI Group
Slide 159: Investments from Financial Institutions in the Two Exchanges
Accept Investments from Leading Financial Institutions in Japan and Overseas for the Two Exchanges Below Dojima Exchange Osaka Digital Exchange Company Investor Consider handling various next-generation composition (%) financial products, including NFTs Japannext 19.42 SBI Holdings 14.57 YUTAKA TRUS
Slide 160: Timeline of Two Exchanges
159 the Next Generation Global Financial Center Timeline of Two Exchanges as the Core of Dojima Exchange becomes a ~2025 comprehensive exchange Osaka Digital Exchange begins 2023~ handling security tokens ~ Spring 2023 Dojima Exchange begins handling futures trading in the financial sector, such as
Slide 161: Dojima Exchange Applied for Permanent Rice Futures Listing
Dojima Exchange, the Only Exchange in Japan for Rice Futures, Applied for Permanent Listing of Rice Futures on July 16 • Rice futures are priced and traded up to a year before the product is actually delivered. Even if the price fluctuates greatly due to good or bad harvests, the rice can be bought
Slide 162: Creation of an API Mart
2. Launching the creation of an "API Mart (Tentative name)" to link domestic and foreign fintech companies with domestic and foreign financial institutions as a new weapon to attract international financial centers [Unauthorized reproduction is prohibited] 161
Slide 163: Establishing a Fintech Cluster in Kansai
Endeavor to Establish a Cluster of Fintech Companies in the Kansai Region Create an "Osaka FinTech Center" by investing in fintech companies that use advanced technology and attracting them to Osaka and other cities In addition, in consultation with local governments, engaging in public projects suc
Slide 164: Creation of an API Mart at Osaka FinTech Center
SBI leading the Creation of an "API Mart" (Tentative Name) at Osaka FinTech Center Users of API-based Domestic and overseas fintech functions < Image > fintech function providers Examples of Domestic and Software features international developer provided financial institutions Settlement Independent
Slide 165: Business Activity Guidelines for the with COVID-19 Era
III. SBI Group’s Future Business Activity Guidelines for the "with COVID-19" Era [Unauthorized reproduction is prohibited] 164
Slide 166: View on Future Business Environment
Our View on the Future Business Environment with the Progress of Measures against COVID-19 Current market environment: • Stock prices are on an upward trend as economic activity resumes in major countries due to the spread of the COVID-19 vaccine while caution against the Delta variant continues • T
Slide 167: Future Business Activity Guidelines for with COVID-19 Era
SBI Group’s Future Business Activity Guidelines for the "with COVID-19" Era ① The COVID-19 vaccine workplace inoculations for about 12,000 people, which started on June 21, will soon complete the second inoculation of all employees who wish to be vaccinated ② Antibody tests will be conducted on all
Slide 168: Reference materials for each business
[Reference materials for each business] [Unauthorized reproduction is prohibited] 167
Slide 169: Composition of SBI SECURITIES Operating Revenue
1. Securities-related business: Trends in the Composition of Operating Revenue (Net Sales) of SBI SECURITIES Diversification of revenue sources, including a significant increase in trading revenue, and a gradual decrease in dependence on domestic stock brokerage commission as revenue from online tra
Slide 170: Largest Number of Brokerage Accounts
1.(1) Securities-related business: SBI Holds an Established Position as the Securities Firm with Largest Number of Brokerage Accounts Number of Accounts of SBI SECURITIES and 2 Major Face-to-face Securities Companies (End of March 2009 - End of June 2021) (thousand accounts) CAGR: % 7,500 7,264 (Mar
Slide 171: Share of Individual Stock Trading
1. Securities-related business SBI Group's Share of Individual Stock Trading -Near-term target of 50% for margin trading market share- Share of Individual Stock (of which) Share of Individual Trading Value (%) Margin Trading Value (%) SBI SBI 43.6 45.2 43.3 45.3 Inside: 1Q FY2020 Inside: 1Q FY2020 O
Slide 172: Stock Brokerage Trading Value and Commissions
1. Securities-related business SBI SECURITIES’ Stock Brokerage Trading Value and Commissions Stock Brokerage Trading Value Commissions (JPY trillion) (JPY million) 40 12,000 11,403 36.9 -3.5% -15.5% 35.6 YoY YoY 9,634 10,000 30 8,000 20 6,000 4,000 10 2,000 0 0 1Q 1Q 1Q 1Q FY2020 FY2021 FY2020 FY202
Slide 173: SBI SECURITIES Holds No.1 NISA Accounts
1. Securities-related business: NISA SBI SECURITIES Holds No.1 NISA Accounts - Attracting a large number of neophyte investors - (thousand Number of NISA accounts NISA’s customer attribute of accounts) (Sept. 2015 – June 2021) 2,400 2,307 SBI SECURITIES (%) SBI Number of new 2,100 Existing customers
Slide 174: Strengthening the iDeCo Pension Business
1. Securities-related business: iDeCo Further Strengthening the Individual Defined Contribution (iDeCo) Pension Business The SBI Group focused on the Individual Defined Contribution (iDeCo) pension business through SBI Benefit Systems (established in 2001), well before expectations for the market si
Slide 175: Industry Leader in iDeCo Customers
1. Securities-related business SBI SECURITIES is the Industry Leader in the Cumulative Number of Individual Defined Contribution Plan (iDeCo) Customers (No. of thousand Cumulated number of customers (subscribers & transfers*) customers) of iDeCo by planning administrator 500 (Nov. 2017 – May 2021) S
Slide 176: OTC FX Accounts and Customer Deposit Assets
1. Securities-related business: FX business The SBI Group’s (SBI SECURITIES, SBI FXTRADE and SBI Sumishin Net Bank) Total Number of Accounts and Customer Deposit Assets have Overwhelmingly Surpassed that of Its Competitors in the OTC FX Industry Changes in the number of accounts among Customers’ Dep
Slide 177: Assets Under Management of the SBI Group
2. Asset Management Business Assets Under Management of the SBI Group (As of the end of June 2021) (*1) (*2) Private equity, etc. JPY 631.2 bn (Excluding JPY 207.9 bn of both cash and commitment amount to be paid in) Breakdown of operating investment Breakdown of operating investment Amount securiti
Slide 178: The SBI Group's Customer Base
The SBI Group’s Customer Base, which was Expanded through the Thorough Pursuit of the Customer-centric Principle and Group Synergies Breakdown of the Customer Base (Thousand) (As of the end of June 2021)*1,2 (Thousand) 31,550 32,000 SBI SECURITIES SBI NEOMOBILE Securities (No. of accounts) 7,264 SBI
Slide 179: Number of Companies and Consolidated Employees
Number of Companies and Consolidated Employees of the SBI Group Number of Group companies March 2021 June 2021 Consolidated subsidiaries (companies) 264 275 Consolidated partnerships (partnerships) 35 36 Total consolidated subsidiaries(companies) 299 311 Equity method companies (companies) 40 42 Tot
Slide 180: https://www.sbigroup.co.jp
https://www.sbigroup.co.jp [Unauthorized reproduction is prohibited] 179