Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — 1H FY2014 Earnings Presentation
31 slides from Japan Securities Finance's earnings presentation, April 2014
Slide 1: Slide 1
Slide 2: Slide 2
Slide 3: Slide 3
Slide 4: Operating revenues by business
\ mil Sep-13 Sep-14 Securities Finance Bussiness 7,792 8,534 Margin Loan Business 4,196 4,627 (45.1%) (45.8%) Interest on Loans 1,946 1,589 Interest on collateral money of securities borrowed 177 287 Fees on Lending Securities 1,748 2,470 Premium Charges 1,380 2,046 Lending Fees 368 424 Bond Financi
Slide 5: Margin loan balance and revenues
1 Avg. Margin Avg. Stock Loan Rate \ mil Loan Loan as of sep Sep-13 Sep-14 Change \ bn \ bn Margin Loan Business 4,196 4,627 10.3% FY2014, 1H 406 198 0.64% Interest on Loans 1,946 1,589 18.4% Interest on collateral money of securities 66 29 0.13% 177 287 61.8% borrowed Fees on Lending Securities 1,7
Slide 6: General and administrative expenses
\mil FY2013 FY2014 change 2Q 2Q General & Administrative Expenses 4,184 3,719 465 Allowance for Doubtful Provision 134 ― 134 Receivables Reversal 410 410
Slide 7: FY2014 1H results by company
\ mil FY2014, 1H Results (Reference) Shareholding FY2013 1H Ratio Operating Recurring Net Net Income Revenues Income Income Consolidated 10,107 2,230 1,865 4,986 JSF - 8,546 1,501 1,236 5,082 JSF Trust Bank 100% 1,664 617 609 235 Nihon Building 100% 643 327 236 159 Affiliates - Loss in Equity-Method
Slide 8: JSF Trust Bank results
\ FY2013 FY2014 change 2Q 2Q Recurring Revenues 1,076 1,664 588 Trust charges 230 259 28 Reversal of Allowance for Doubtful Receivables 358 358 Ordinary Expenses 1,283 1,046 236 Provision for Allowance for Doubtful Receivables 237 237 Recurring Income 206 617 824 Net Income 235 609 844 Total A
Slide 9: Slide 9
Slide 10: Slide 10
Slide 11: 6.0 60% 5.0 50% 4.0 40% 3.0 30% 2.0 20% 1.0 10% 0.0 0%
6.0 60% 5.0 50% 4.0 40% 3.0 30% 2.0 20% 1.0 10% 0.0 0% 1.2 90% 80% 1.0 70% 0.8 60% 50% 0.6 40% 0.4 30% 20% 0.2 10% 0.0 0%
Slide 12: Preconditions for FY2014
Precondition FY2014 190 bn Avg. FY2013 Precondition Y2014 176 bn 420 bn Avg. FY2013 490 bn
Slide 13: The Number of Loanable Issues
The Number of Loanable Issues 2,400 indicates ETFs [ ]indicates 2,200 2,107 2,059 1,991 2,000 1,800 1,708 1,657 1,683 1,682 (158) 1,600 1,400 (103) (108) (111) (117) (143) (155) 1,200 1,000
Slide 14: Slide 14
Slide 15:
Slide 16: Slide 16
Slide 17: Slide 17
Slide 18: Operating revenues by business, multi-year
\ mil Mar-10 Mar-11 Mar-12 Mar-13 Sep-13 Mar-14 Sep-14 Securities Finance Bussiness 20,817 17,558 15,186 14,093 7,792 16,363 8,534 Margin Loan Business 12,954 8,922 6,756 6,625 4,196 9,240 4,627 (46.5%) (39.0%) (33.4%) (37.5%) (45.1%) (47.2%) (45.8%) Interest on Loans 3,324 2,809 1,783 1,760 1,946 4
Slide 19: Average and term-end loan balances
\ mil FY2013 FY2014 FY2009 FY2010 FY2011 FY2012 FY2013 Interim Interim avg. 324,205 293,429 218,059 214,164 472,976 490,635 406,931 Margin Loans term-end 328,755 305,083 241,035 502,322 569,353 601,206 445,464 Bond Financing & General avg. 46,863 45,850 50,893 55,865 139,032 157,232 198,979 Loans te
Slide 20:
Slide 21:
Slide 22:
Slide 23:
Slide 24: Loan rate, lending fee and collateral interest rate
Loan Rate Lending Fee Interest Rate on Collateral Money of Stock Loan BOJ Policy Rate 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0%
Slide 25: Loan rate, lending fee and collateral interest rate history
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 Aug-14 3.0% Jan-09 2.0% May-02 1.17% 1.0% 1.04% 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 12 13 14
Slide 26: \
\
Slide 27: JGB holdings of JSF and JSF Trust Bank
¥ bn JSF \ mil 2,000 3.0 JSF Sep-13 Mar-14 Sep-14 2.5 JGB Balance 1,173,933 955,037 1,011,979 1,500 (2.69) (1.69) (2.33) 2.0 1 year or less 472,803 270,656 382,492 over 1Y 701,130 684,381 629,486 1,000 1.5 (15Y floating JGB) 150,752 150,543 150,210 701 629 1.0 684 Net unrealized gain or loss on secu
Slide 28: Trust bank loans and securities by sector
\mil \mil Sep-13 Mar-14 Sep-14 Sep-13 Mar-14 Sep-14 Notes Loan Loan Loan Balance ratio Balance ratio Balance ratio JGB 375,273 418,036 459,336 Manufacturing 20,828 31.7% 15,809 24.7% 12,639 23.3% less than 1Y 20,001 15,133 185,096 Mainly Mid-term Fishery 0 0.0% 0 0.0% 0 0.0% over 1Y 355,272 402,902
Slide 29: Shares issued and PBR
\ Number of Cancellation 120,000 shares issued FY03 99,704 2,106 110,000 FY04 99,704 FY05 99,704 FY06 99,704 100,000 FY07 99,704 FY08 93,700 6,004 90,000 FY09 93,700 FY10 93,700 80,000 FY11 93,700 FY12 93,700 FY13 107,307 Number of shares issued Cancellation Consolidated PBR
Slide 30: ’
’
Slide 31: Slide 31
Japan Securities Finance — 1H FY2014 Earnings Presentation on 6ix