Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q3 FY2010 Earnings Presentation
29 slides from Japan Securities Finance's earnings presentation, February 2010
Slide 1: Financial Presentation for 3Q, FY2010
Financial Presentation for 3Q, 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 for 3Q, FY2010
Financial Summary for 3Ｑ, FY2010 ¥ mil Parent Consolidated FY2009 FY2010 FY2009 FY2010 Change Change 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Operating ▲3,287 ▲4,473 16,398 13,111 (▲20.0%) 21,530 17,056 (▲20.8%) Revenues EX Premium ▲1,381 ▲2,568 Charges 11,879 10,497 17,010 14,442 (▲11.6%) (▲15.1%) Operating Expense
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Dec-09 Dec-10 Securities Finance Bussiness 16,299 13,050 Margin Loan Business 10,091 6,484 【Margin Loan】 【Margin Loan】 (46.9%) (38.0%) ・The ・The revenues revenues in in the the business business decreased decreased because because of of the the Interest on L
Slide 5: Financial Highlights for FY2010, 3Q
Financial Highlights for FY2010, 3Q 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, 3Q：
Slide 6: Financial Results of Group Companies
Financial Results of Group Companies FY2010, 1Q-3Q Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 17,056 3,088 3,027 JSF - 13,111 2,383 1,604 JSF Trust Bank 100% 3,313 842 1,697 Nihon Building 100% 971 337 203 Equity-method - Gain in Equity-Method ▲220 * Figu
Slide 7: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2009 FY2010 change 1Q-3Q 1Q-3Q Recurring Revenues 4,447 3,313 ▲1,134 Trust charges 179 227 48 Recurring Income 1,068 842 ▲226 Extraordinary Profit ― 846 846 Net Income 1,067 1,697 630 Equity Ratio 17.37％ 23.29 ％ Financial Financial Highlights Highlights fo
Slide 8: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Dec-10) \mil 1% JGB 1year Mar-10 Sep-10 Dec-10 Notes or less JGB 897,766 527,945 895,246 22% 1year or less 847,870 457,934 770,287 JGB over 1Y over 1Y 49,895 70,010 124,958 Municipal Bond 105,029 151,896 171,857 Governme
Slide 9: Estimated Figures for FY2010
Estimated Figures for FY2010 Parent Consolidated FY2010 FY2010 FY2010 FY2010 estimated estimated estimated estimated 3Q Result difference 3Q Result difference (announced on (announced on (announced on (announced on \ mil 8/Nov/10) 3/Feb/11) 8/Nov/10) 3/Feb/11) Operating Income 1,989 1,900 2,000 100
Slide 10: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans 1Q-3Q, FY2010 Results FY2010 Precondition Excess of Excess of Margin Loan Excess Margin Loan Excess of ¥168bn of Stock Loan ¥150bn Stock Loan ¥93bn ¥100bn Matching Matching ¥127bn ¥140bn Margin Loan Stock Loan Margin Loan Stock Loan ¥295bn ¥220bn ¥290bn ¥240bn Ja
Slide 11: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2010, 3H Results FY2010 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 3,152 3,088 3,027 3,300 3,500 3,300 JSF － 1,989 2,383 1,604 2,000 2,500 1,600 JSF Trust Bank 100%
Slide 12: Appendix
a Appendix
Slide 13: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-06 Mar-07 Mar-08 Mar-09 Dec-09 ※ Mar-10 ※ Dec-10 Securities Finance Bussiness 29,075 34,917 38,619 34,427 16,299 20,817 13,050 Margin Loan Business 22,993 23,186 23,156 19,638 10,091 12,954 6,484 (61.8%) (53.3%) (45.8%) (44.3%) (46.9%) (46.5%) (38.0%) In
Slide 14: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2009 FY2010 FY2005 FY2006 FY2007 FY2008 FY2009 1Q-3Q 1Q-3Q avg. 1,637,698 1,444,347 917,219 336,324 325,205 324,205 295,718 Margin Loans term-end 2,328,082 1,634,700 508,587 244,306 293,117 328,755 230,966 Bond Financing & General avg. 46,436 79,425 76,941 51,
Slide 15: JGB Balance
JGB Balance \bn \ mil JSF 2,500 1.5 JSF Dec-09 Mar-10 Dec-10 1,085 2,000 JGB Balance 1,688,458 2,085,612 2,535,060 444 (1.16) 1.0 1Y or less 1,343,126 1,641,497 1,450,482 1,500 345 over 1Y 345,332 444,115 1,084,578 (15Y floating JGB) 194,119 193,314 193,371 1,000 (.77) (.77) 0.5 Net unrealized gain
Slide 16: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions \ tri \ 1.8 15,000 Standardized Margin Buying Transactions (left) 1.6 Buying, Bottom Standardized Margin Selling Transactions (left) Mar-09 Nikkei225(right) 12,500 1.4 \684bn 1.2 10,000 1.0 Selling, Bottom 7,500 0.8 Aug-10 0.6 \297bn 5,000 0.4
Slide 17: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans \ tri 10 60% Margin Buying Balance 9 Margin Loan Balance 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 17
Slide 18: Margin Selling Transactions & JSF Stock Loans
Margin Selling Transactions & JSF Stock Loans ￥tri 2.0 100% 1.8 M argin Selling Balance 90% Stock Loan Balance 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 Finance Co.,Ltd 18
Slide 19: Margin Transactions & Stock Loans
Margin Transactions & Stock Loans Margin Transactions and Nikkei225 Loan Rate of Loans for Margin Transactions \ tri \ 3.0 Standardized Margin Buying Transactions (left) 15,000 2.0% Standardized Margin Selling Transactions (left) Loan Rate Lending Fee Profit Margin 2.5 Nikkei225(right) 12,500 2.0 10
Slide 20: 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) 0.6 2.0% FY2009 FY2010, 3Q Margin Loan：\324bn Margin Loan：\295bn Stock Loan： \361bn Stock Loan： \220bn 0.97％ 0.4 0.77％ 1.0% 0.2 0.0 0.0% Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-
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％ Companies Companies Securities Securities 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%
Slide 22: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 8 .7 5 % 9.0% L o a n R a te Inte re s t R ate on C o lla te ra l M oney o f Sto c k Lo a n 8.0% L e nding F ee 7.0% P ro fit M argin 6.0% 5 .0 0 % 5.0% Sep 93 4.0% 3.75% No v 1 0 3.0% J an 0 9 2.0% May 0 2 1.17% 1.0% 0.0% 88 89 90 91 92 93 94 95 96 9
Slide 23: 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 as of Oct.8 2010 Share of Standardiz
Slide 24: 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 25: 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 26: 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 27: Securities Account
Securities Account Dec-10 notes Dec-10 Assets Liabilities \mil \mil Collateral Money of Securities Loans 542,011 745,876 Lent Margin Loans 230,966 margin loan Margin Loans 263,036 Collateral Money of Securities 1,245,893 Borrowed Excess of Stock Loan 131,714 stock loan Securities Account Securities
Slide 28: 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 29: 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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