Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — FY2009 Earnings Presentation
33 slides from Japan Securities Finance's earnings presentation, May 2010
Slide 1: Financial Presentation for FY2009
Financial Presentation for 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 are no
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for Mar 2010
Financial Summary for Mar 2010 ¥ mil Parent Consolidated Mar2009 Mar2010 Change Mar2009 Mar2010 Change Operating ▲13,997 ▲16,431 Revenues 34,938 20,940 (▲40.1%) 44,299 27,868 (▲37.1%) EX Premium ▲8,202 ▲10,636 Charges 23,370 15,167 32,731 22,095 (▲35.1%) (▲32.5%) Operating Expenses 23,812 10,497 ▲13
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil, ( ) indicates component % Mar-09 Mar-10 【Margin Loan】 【Margin Loan】 Margin Loan Business 19,638 12,954 ・・ Interest Interest on on loans loans decreased, decreased, mainly mainly due due toto aa decline decline of of (44.3%) (46.5%) Interest on Loans 3,899 3
Slide 5: Financial Highlights for Mar 2010
Financial Highlights for Mar 2010 1 Margin Margin Loan Loan Balance Balance for for FY2009 FY2009 \ mil Avg. Margin Avg. Stock Loan Rate Mar-09 Mar-10 Change Loan Loan （ as of Mar） Margin Loan Business 19,638 12,954 -34.0% \ bn \ bn Interest on Loans 3,899 3,324 -14.7% FY2009 324 361 0.97% Interest
Slide 6: Financial Highlights for Mar 2010
Financial Highlights for Mar 2010 2 Decrease Decrease of of Operating Operating Expenses Expenses and and General General & & Administrative Administrative Expenses Expenses [Operating Expenses] ▲64.7%, YoY ＊Interest paid for funding money decreased largely, due to a decline of market rate. \ mil ＊V
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies \ mil Mar 2010 Results Shareholding Ratio Operating Recurring Net Revenues * Income Income Consolidated 27,868 5,182 3,572 JSF - 20,940 4,012 2,512 JSF Trust Bank 100% 6,019 1,670 1,900 Nihon Building 100% 1,399 557 323 Equity-method - Loss in Equity-Method ▲ 916
Slide 8: Financial Results of JSF Trust Bank
Financial Results of JSF Trust Bank ¥mil Mar-09 Mar-10 change Recurring Revenues 8,893 6,019 ▲2,874 Trust charges 212 250 ＋37 Recurring Income ▲8,204 1,670 ＋9,875 Net Income ▲8,413 1,900 ＋10,313 Equity Ratio 17.51% 19.88% Recurring revenues decreased, due to decrease of loan balance and Financial
Slide 9: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ●Ratio of Securities (as of Mar-10) \mil JGB less than 1Y Mar-09 Sep-09 Mar-10 Notes 2% JGB 877,724 802,388 897,766 less than 1Y 837,866 706,880 847,870 23% JGB over 1Y over 1Y 39,858 95,507 49,895 Municipal Bond 50,259 70,479 105,029 Corporate Bon
Slide 10: Financial Results of JBIS Holdings
Financial Results of JBIS Holdings ¥mil Mar-09 Mar-10 change Revenues 48,290 40,532 ▲7,758 Operating 1,197 ▲1,127 ▲2,324 Income Recurring Income 3,469 196 ▲3,273 Net Income ▲1,809 ▲1,988 ▲178 Financial Financial Highlights Highlights Revenues of Information Service Business dropped, because of the
Slide 11: Estimated Figures for Mar 2011
Estimated Figures for Mar 2011 ¥mil Parent Consolidated Mar2010 Mar2011 Change Mar2010 Mar2011 Change Operating ▲1,377 ▲2,798 3,577 2,200 (▲38.5%) 5,898 3,100 (▲47.4%) Income Recurring ▲1,312 ▲1,282 4,012 2,700 (▲32.7%) 5,182 3,900 (▲24.7%) Income Net ▲912 ▲872 Income 2,512 1,600 (▲36.3%) 3,572 2,70
Slide 12: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans FY2009 Results FY2010 Precondition Excess Excess of Excess of Excess of of Stock Loan Margin Loan Stock Loan Margin Loan ¥152bn ¥189bn ¥170bn ¥160bn Matching Matching ¥171bn ¥150bn Margin Loan Stock Loan Margin Loan Stock Loan ¥324bn ¥361bn ¥320bn ¥310bn Apr-10 R
Slide 13: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil Mar 2010 Results Mar 2011 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 5,898 5,182 3,572 3,100 3,900 2,700 JSF - 3,577 4,012 2,512 2,200 2,700 1,600 JSF Trust Bank 100%
Slide 14: Management Matters
a Management Matters
Slide 15: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions (TSE+JDQ) \ tri \ 5.0 20,000 Standardized Margin Buying Transactions (left) 4.5 18,000 Standardized Margin Selling Transactions (left) 4.0 Nikkei225(right) 16,000 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 16: 2nd Mid-term Management Plan
2nd Mid-term Management Plan ～Strategies of 2nd MMP～ FY2009 FY2010 FY2011 Margin Transaction 【Business Strategies】 Support Division Competiveness of Margin Loan Business ◆Increase the number of Loanable Issues ETFs for Loans for Margin Transactions ◆Loans for Negotiable Margin Transactions Promote t
Slide 17: 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. Loanable Issues：1,716 (as of Mar-10) The number of Loanable Issues(TSE+JDQ) The number of Listed Issues(TSE+JDQ) （ ） indicates ETFs 3,500 3,45
Slide 18: 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 2010 Market integration of Hercules market and JASDAQ market End of Margin Loan Business for JASDAQ market Share of Standardized Margin Share of S
Slide 19: Reinforcing Management Foundations
Reinforcing Management Foundations Group Group Risk Risk Control Control Efficient Risk control to JSF Trust Bank Strengthen governance to JSF Trust Bank Business Business Continuity Continuity Plan Plan Build and run Back-up system for business continuity plan Discontinue Discontinue Operatio
Slide 20: Solidify Profit Base of JSF Group
Solidify Profit Base of JSF Group JSF JSF Trust Trust Bank Bank 1. Expansion of Trust Business ・Business promotion to foreign exchange brokers for Foreign Exchange Margin Trust. ・Boost Securities Trust. 2. Securities Investment Policy in Banking Business ・Investment in riskless assets such as JGBs o
Slide 21: 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 22: Appendix
a Appendix
Slide 23: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Margin Loan Business 17,309 22,993 23,186 23,156 19,638 12,954 (47.9%) (61.8%) (53.3%) (45.8%) (44.3%) (46.5%) Interest on Loans 6,794 10,158 10,954 10,581 3,899 3,324 Interest on collateral money of securities 889 8
Slide 24: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2005 FY2006 FY2007 FY2008 FY2009 avg. 1,637,698 1,444,347 917,219 336,324 324,205 Margin Loans term-end 2,328,082 1,634,700 508,587 244,306 328,755 Bond Financing & General avg. 46,436 79,425 76,941 51,887 46,863 Loans term-end 97,298 79,859 68,594 53,141 51,4
Slide 25: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans (TSE+JDQ) \ tri 10 60% Margin Buying Balance (TSE+JDQ) 9 Margin Loan Balance (JSF) 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 Japan Securities Finance Co.,Ltd 25
Slide 26: 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 27: Securities Account
Securities Account Mar-10 notes Mar-10 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 655,567 824,158 Lent Margin Loans 328,755 margin loan Margin Loans 306,394 stock loan Bond Financing & General Loans 51,448 Loans for Negotiable Margin 20,944 Transaction Others 14,500 Trus
Slide 28: JGB Balance
JGB Balance \ mil \ bn JSF Mar-09 Sep-09 Mar-10 2,000 1.5 JSF 253 444 JGB Balance 2,013,849 1,490,320 2,085,612 1,500 less than 1Y 1,760,788 1,218,803 1,641,497 272 1,641 1.0 over 1Y 253,061 271,517 444,115 1,761 1,000 (15Y floating JGB) 188,511 192,516 193,314 1,219 (.77) Net unrealized gain or los
Slide 29: 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 30: 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 of Stock Loan 8.0% Lending Fee Profit Margin 7.0% 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 89 90 91 92 92 93 94 95 95 96 97 98 98 99 00 01 01 02 03 04 04 05
Slide 31: 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 32: 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 33: 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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