Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — 1H FY2011 Earnings Presentation
32 slides from Japan Securities Finance's earnings presentation, March 2011
Slide 1: Financial Presentation for 1st Half, FY2011
Financial Presentation for 1st Half, FY2011 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 translati
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 1st Half, FY2011
Financial Summary for 1st Half, FY2011 ¥ mil Parent Consolidated FY2010 FY2011 FY2010 FY2011 Change Change 1H 1H 1H 1H Operating ▲1,090 ▲428 9,227 8,136 (▲11.8%) 11,904 11,476 (▲3.6%) Revenues EX Premium ▲893 ▲231 Charges 7,509 6,615 10,186 9,955 (▲11.9%) (▲2.3%) Operating Expenses 4,053 4,314 261 5
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Sep-10 Sep-11 Securities Finance Bussiness 9,183 8,079 【Margin Loan】 【Margin Loan】 Margin Loan Business 4,517 3,449 ・・ The The revenues revenues inin the the business business decreased decreased due due to to balance balance (37.9%) (30.1%) decrease decreas
Slide 5: Financial Highlights for 1st Half, FY2011
Financial Highlights for 1st Half, FY2011 1 Margin Margin Loan Loan Balance Balance for for 1 st Half, 1st Half, FY2011 FY2011 \ mil Avg. Margin Avg. Stock Loan Rate Policy Rate Sep-10 Sep-11 Change Loan Loan （as of sep） （as of sep） Margin Loan Business 4,517 3,449 ▲23.6 \ bn \ bn FY2011, 1H 247 191
Slide 6: Financial Highlights for 1st Half, FY2011
Financial Highlights for 1st Half, FY2011 2 Profit Profit for for bond bond trading trading largely largely increased increased in in JSF JSF Trust Trust Bank. Bank. Booked Profit for bond trading of ¥2,399mil（+¥986mil,YoY）in JSF Trust Bank, due to sale gain of CDO. \ mil FY2010 FY2011 change 1H 1
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2011, 1H Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 11,476 2,795 2,256 JSF - 8,136 1,160 710 JSF Trust Bank 100% 2,988 1,645 1,644 Nihon Building 100% 581 185 95 Equity-method - Loss in Equity-Method 88 * Figur
Slide 8: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2010 FY2011 change 1H 1H Recurring Revenues 2,227 2,988 760 Trust charges 150 152 1 Recurring Income 574 1,645 1,070 Extraordinary Profit 682 － ▲682 Net Income 1,256 1,644 388 Equity Ratio 23.01％ 30.11％ Financial Financial Highlights Highlights for for 11s
Slide 9: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Sep-11) \mil 1% JGB less Sep-10 Mar-11 Sep-11 Notes than 1Y JGB 527,945 930,443 488,822 less than 1Y 457,934 830,509 428,939 29% JGB over 1Y over 1Y 70,010 99,933 59,882 Municipal Bond 151,896 196,775 187,486 44% Municip
Slide 10: Estimated Figures for FY2011
Estimated Figures for FY2011 Parent Consolidated 1st Half FY2011 FY2011 1st Half FY2011 FY2011 estimated 1st Half difference estimated estimated difference estimated 1st Half difference estimated estimated difference (announced Result (announced (announced (announced Result (announced (announced \ m
Slide 11: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans 1H, FY2011 Results FY2011 Precondition Excess of Excess of Margin Loan Excess Excess of Margin Loan of Stock Loan ¥110bn Stock Loan ¥136bn ¥80bn ¥80bn Matching Matching ¥110bn ¥110bn Margin Loan Stock Loan Margin Loan Stock Loan ¥247bn ¥191bn ¥220bn ¥190bn Oct-11
Slide 12: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2011, 1H Results FY2011 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 2,759 2,795 2,256 3,100 3,200 2,500 JSF － 941 1,160 710 1,100 1,300 800 JSF Trust Bank 100% - 1,6
Slide 13: Management Matters
Management Matters
Slide 14: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions \ tri Standardized Margin Buying Transactions (left) \ 1.8 Standardized Margin Selling Transactions (left) 12,00 0 Buying, Bottom Nikkei225(right) 1.6 M ar-09 \684bn 1.4 1.2 10,00 0 1.0 Selling, Bott om 0.8 Aug-11 \276bn 0.6 8,000 0.4 0.2 0.0 6
Slide 15: 2nd Mid-term Management Plan
2nd Mid-term Management Plan ～Strategies of 2nd MMP～ FY2009 FY2010 FY2011 【Business Strategies】 Margin Transaction 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
Slide 16: 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. ☆ To increase the number of Loanable Issues ● Select foreign stocks、Exchange Traded Funds(ETFs) and newly Exchange Traded Notes (ETNs) from Au
Slide 17: Present Measures of JSF Group Company
Present Measures of JSF Group Company JSF Trust Bank 1.Trust Business ○Offer of the general financial service to securities companies ・Expansion of the trust charges (to customer-oriented money trust ¥ mil and foreign exchange margin trust, etc.) Mar Sep Mar 2012 2011 2011 (Forcast) 2.Banking Busine
Slide 18: 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. FY2011 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 Annual Dividend per share ¥
Slide 19: Appendix
a Appendix
Slide 20: Maintenance of Cash Funding Sources
Maintenance of Cash Funding Sources Strengthen cash funding ability by maintaining cash funding sources, to supply low rate money stably to securities market and to enhance company’s financial soundness. To fund fluctuating money with low rate, it’s important for the company to maintain solid amou
Slide 21: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-07 Mar-08 Mar-09 Mar-10 Sep-10 Mar-11 Sep-11 Securities Finance Bussiness 34,917 38,619 34,427 20,817 9,183 17,558 8,079 Margin Loan Business 23,186 23,156 19,638 12,954 4,517 8,922 3,449 (53.3% ) (45.8%) (44.3% ) (46.5%) (37.9% ) (39.0%) (30.1%) Interes
Slide 22: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2010 FY2011 FY2006 FY2007 FY2008 FY2009 FY2010 Interim Interim avg. 1,444,347 917,219 336,324 324,205 332,944 293,429 247,465 Margin Loans term-end 1,634,700 508,587 244,306 328,755 277,758 305,083 237,766 Bond Financing & General avg. 79,425 76,941 51,887 46,
Slide 23: 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 24: 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 11 Japan Securities Finance Co.,Ltd 24
Slide 25: Margin Selling Transactions & JSF Stock Loans
Margin Selling Transactions & JSF Stock Loans ￥tri 2.0 100% 1.8 Margin Selling Balance 90% Stock Loan Balance 1.6 Ratio 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 11 Japan Securities Finance Co.,Ltd 25
Slide 26: Securities Account
Securities Account Sep-11 notes Sep-11 Assets Liabilities \mil \mil Collateral Money of Securities Loans 429,189 702,309 Lent Margin Loans 237,766 margin loan Margin Loans 187,890 Collateral Money of Securities 780,676 Borrowed Excess of Stock Loan 100,340 stock loan Securities Account Securities Ac
Slide 27: JGB Balance
JGB Balance \ bn JSF 3,000 2.0 \ mil 2,500 1,117 Sep-10 Mar-11 Sep-11 975 1.5 JSF 2,000 629 JGB Balance 2,156,566 2,987,211 2,702,225 1,500 1.0 1 year or less 1,527,707 1,870,087 1,727,065 (1.03) (.96) 1,000 (.90) over 1Y 628,859 1,117,124 975,160 1,870 1,528 1,727 0.5 (15Y floating JGB) 194,014 194
Slide 28: 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 29: 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 30: 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 N umb
Slide 31: 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 32: 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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