Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q1 FY2011 Earnings Presentation
28 slides from Japan Securities Finance's earnings presentation, April 2011
Slide 1: Financial Presentation for 1Q, FY2011
Financial Presentation for 1Q, 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 translation are
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary FY2011, 1Q
Financial Summary FY2011, 1Q ¥ mil Parent Consolidated FY2010 FY2011 Change FY2010 FY2011 Change 1Q 1Q 1Q 1Q Operating ▲1,154 ▲67 5,044 3,889 (▲22.9%) 6,418 6,350 (▲1.1%) Revenues EX Premium ▲697 388 Charges 4,049 3,351 5,423 5,812 (▲17.2%) (7.2%) Operating Expenses 2,205 2,075 ▲130 2,825 2,587 ▲238
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Jun-10 Jun-11 Securities Finance Bussiness 5,020 3,861 Margin Loan Business 2,522 1,443 【Margin Loan】 【Margin Loan】 ・・ The The revenues revenues inin the the business business decreased decreased due due to to lowered lowered (39.3%) (22.7%) Interest on Loan
Slide 5: Financial Highlights for FY2011, 1Q
Financial Highlights for FY2011, 1Q 1 As As the the outstanding outstanding balance balance of of standardized standardized margin margin transactions transactions declined, declined, both both Margin Margin Loan Loan Balance Balance and Stock Loan and Stock Loan Balance Balance decreased. decreased
Slide 6: Avg. Outstanding Balance of Margin Loans and Stock Loans
Avg. Outstanding Balance of Margin Loans and Stock Loans Margin Loans(left) Stock Loans(left) Margin Loan Rate(right) \tri 0.5 2.0% FY2010 (Result) FY2011 1Q (Result) Margin Loan: \293 bn Margin Loan: \256bn Stock Loan : \228 bn Stock Loan : \ 191bn 0.4 FY2011 Precondition 0.97% Margin Loan: \250 bn
Slide 7: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions \ tri Buying, Peak Standardized Margin Buying Transactions (left) \ 6.0 Feb-06 \5.352bn 20,000 Standardized Margin Selling Transactions (left) Nikkei225(right) 17,500 5.0 Selling, Bottom Buying, Bottom Aug-10 15,000 4.0 Mar-09 \297bn \684bn 12,
Slide 8: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2011, 1Q Results Shareholding Ratio Operating Recurring Net Revenues * Income Income Consolidated 6,350 2,256 1,963 JSF - 3,889 691 438 JSF Trust Bank 100% 2,345 1,600 1,599 Nihon Building 100% 285 103 61 Equity-method - Loss in Equity-Method ▲30 * Figure
Slide 9: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2010 FY2011 change 1Q 1Q Recurring Revenues 1,147 2,345 1,198 Recurring Income 312 1,600 1,287 Net Income 883 1,599 716 Equity Ratio 21.66％ 28.25％ Financial Financial Highlights Highlights for for FY2011, FY2011, 1Q 1Q Trust charges increased due to stre
Slide 10: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Jun-11) \mil Sep-10 Mar-11 Jun-11 Notes 1% JGB 527,945 930,443 468,813 JGB 1year or less 1year or less 457,934 830,509 383,876 over 1Y 70,010 99,933 84,936 31% JGB over 1Y Municipal Bond 151,896 196,775 173,399 Governmen
Slide 11: Estimated Figures for FY2011
Estimated Figures for FY2011 ¥mil Parent Consolidated FY2011 FY2011 FY2011 FY2011 FY2011 FY2011 1Q Results 1Q-2Q 1Q-4Q 1Q Results 1Q-2Q 1Q-4Q Operating 800 1,400 2,600 3,400 494 2,182 Profit （+500） （+700） （+600） （+600） Recurring 1,000 1,600 2,700 3,800 691 2,256 Income （－） （－） （+600） （+600） 600 1,00
Slide 12: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans FY2011,1Q Results FY2011 Precondition Excess of Excess of Margin Loan Excess Margin Loan Excess of ¥140bn of Stock Loan Stock Loan ¥120bn ¥76bn ¥100bn Matching Matching ¥115bn ¥130bn Margin Loan Stock Loan Margin Loan Stock Loan ¥256bn ¥191bn ¥250bn ¥230bn Jun-11
Slide 13: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2011, 1Q Results FY2011 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 2,182 2,256 1,963 3,400 3,800 3,100 JSF － 494 691 438 1,400 1,600 1,000 JSF Trust Bank 100% - 1,6
Slide 14: Appendix
a Appendix
Slide 15: 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 16: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-07 Mar-08 Mar-09 Mar-11 Jun-10 Mar-11 Jun-11 Securities Finance Bussiness 34,917 38,619 34,427 20,817 5,020 17,558 3,861 Margin Loan Business 23,186 23,156 19,638 12,954 2,522 8,922 1,443 (53.3%) (45.8%) (44.3%) (46.5%) (39.3%) (39.0%) (22.7%) Interest o
Slide 17: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2010 FY2011 FY2007 FY2008 FY2009 FY2010 1Q 1Q avg. 917,219 336,324 324,205 369,982 293,429 256,490 Margin Loans term-end 508,587 244,306 328,755 387,018 305,083 260,246 Bond Financing & General avg. 76,941 51,887 46,863 50,389 45,850 38,750 Loans term-end 68,5
Slide 18: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans \ tr i 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 18
Slide 19: 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 19
Slide 20: Securities Account
Securities Account Jun-11 notes Jun-11 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 466,540 803,809 Lent Margin Loans 260,246 margin loan Margin Loans 179,985 stock loan Collateral Money of Securities 832,479 Borrowed Excess of Stock Loan 80,909 stock loan Securities Accou
Slide 21: 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 22: JGB Balance
JGB Balance \ bn JSF 3,000 1.5 \ mil Sep-10 Mar-11 Jun-11 2,500 1,117 989 JSF JGB Balance 2,156,566 2,987,211 2,923,805 2,000 629 1.0 (1.03) (.98) 1 year or less 1,527,707 1,870,087 1,934,985 1,500 (.90) over 1Y 628,859 1,117,124 988,819 1,000 1,870 0.5 (15Y floating JGB) 194,014 194,809 167,720 1,9
Slide 23: Margin Transactions & Stock Loans
Margin Transactions & Stock Loans \ tri Margin Transactions and Nikkei225 \ Loan Rate of Loans for Margin Transactions 3.0 Standardized Margin Buying Transactions(left) 15,000 2.0% Standardized Margin SellingTransactions(left) 2.5 Nikkei225(right) 12,500 Loan Rate Lending Fee Profit Margin 2.0 10,00
Slide 24: 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 25: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 8.75% 9.0% Loan Rate Interest Rate on Collateral M oney of Stock Loan 8.0% Lending Fee 7.0% Profit M argin 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
Slide 26: 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 27: 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 28: 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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