Tokai Tokyo Financial Holdings, Inc. · TSE:8616
Tokai Tokyo Financial — FY2024 Earnings Presentation
56 slides from Tokai Tokyo Financial's earnings presentation, May 16, 2024
Slide 1: IR Presentation FYE Mar. 2024
IR Presentation FYE Mar. 2024 May 16,2024 Tokai Tokyo Financial Holdings, Inc.
Slide 2: Table of Contents
Table of Contents Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 ・Financial Summary ・Performance Review ・Profit analysis of each Group member （Ordinary Profit） ・Commission Received ・Net Trading Income ・SG&A Expenses ・Assets Under Custody ・【 Individual 】 Net increase in funds an
Slide 3: Summary of Financial Results for the Fiscal Year ending March 2024
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 ・Financial Summary ・Performance Review ・Profit analysis of each Group member (Ordinary Profit） ・Commission Received ・Net Trading Income ・SG&A Expenses ・Assets Under Custody ・【 Individual 】 Net increase in funds and assets （ Tokai T
Slide 4: Financial Summary
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Financial Summary ・Revenue and profit increased and operating revenue reached the highest level in 10 years thanks to thanks to a favorable market environment. ・Significant recovery in terms of Profits and Losses at group securitie
Slide 5: Performance Review
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Performance Review Revenue and profit increased with a tailwind effect of a favorable market environment, and operating revenue reached the highest level in 10 years as well. （Millions of yen） FYE Mar. 2023 FYE Mar. 2024 FYE Mar. F
Slide 6: Profit analysis of each Group member (Ordinary Profit)
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Profit analysis of each Group member (Ordinary Profit） Significant recovery in Profits and Losses at group securities companies. Digital companies continue to experience poor performance. (Millions of yen) FYE Mar. 2023 FYE Mar. 20
Slide 7: Commission Received
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Commission Received The increased Japanese and foreign stock trading volume pushed up brokerage commissions significantly. （Millions of yen） FYE Mar. 2023 FYE Mar. 2024 FYE Mar. FYE Mar. YoY QoQ 2023 2024 % Change % Change 1Q 2Q 3Q
Slide 8: Net Trading Income
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Net Trading Income With the increase in trading of foreign stocks, stock trading income increased significantly compared to the same period last year. （Millions of yen） FYE Mar. 2023 FYE Mar. 2024 FYE Mar. FYE Mar. YoY QoQ 2023 202
Slide 9: SG&A Expenses
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 SG&A Expenses Selling, general, and administrative expenses increased over the same period last year due to a large hike in personnel expenses triggered by the salary base raise and higher provision for performance-linked bonuses.
Slide 10: Assets Under Custody
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 Assets Under Custody Group assets under custody have grown steadily, reaching the 10 trillion yen mark for the first time in the fiscal year ending March 2024. （Billions of yen） Mar. 2022 Jun. 2022 Sep. 2022 Dec. 2022 Mar. 2023 Jun
Slide 11: Net inflow of Cash and Securities (Individuals)
Ⅰ Summary of Financial Results for the Fiscal Year ending March 2024 【Individuals】Net inflow of Cash and Securities（Tokai Tokyo Securities＋JVs） The net inflow of cash and securities at individual accounts remains high as in the previous year. （Millions of yen） FYE Mar. 2023 FYE Mar. 2024 FYE Mar. FY
Slide 12: Progress of Medium-Term Management Plan
Ⅱ Progress of Medium-Term Management Plan ・”Beyond Our Limits” ・The caliber enlargement as a financial service provider ・Key measures to reach the New World 11
Slide 13: "Beyond Our Limits"
Ⅱ Progress of Medium-Term Management Plan “Beyond Our Limits” Starting in FY 2022, we have been promoting the medium-term management plan "Beyond Our Limits." The basic policy of strategy formation Perfection For a better in fulfilling all Be society the mundane exciting Powerful basics Stable Earni
Slide 14: The caliber enlargement as a financial service provider
Ⅱ Progress of Medium-Term Management Plan “The caliber enlargement as a financial service provider” “The caliber enlargement as a financial service provider” is being developed from the following four subjects/perspectives. Tokai Tokyo Securities ■ Orque d’or Strategy ■ Access to Core Assets led by
Slide 15: Performance Trends
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Performance Trends 【The level as of April Tokai Tokyo Securities Performance Trends 2021=100】 経常利益 Ordinary Profit 【Millions of yen】 22,078 160 （ Operating 営業収益 （Ordinary Profit）
Slide 16: Status of Operating revenue by channel
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Status of Operating revenue by channel 15
Slide 17: Trend of Assets under Custody
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Trend of Assets under Custody 16
Slide 18: Status of net increase in assets and asset inflow
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Status of net increase in assets and asset inflow Status of net increase in assets and asset inflow（inflow of Cash and Securities) 【Individuals】 17
Slide 19: New NISA whirlwind
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities New NISA whirlwind NISA A/Cs NISA A/Cofnumber Number NISA Accounts 18
Slide 20: The caliber enlargement as a financial service provider
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Ⅰ “Orque d’or” Ⅴ Strategy Ⅱ Global Market Access to Core Assets led by Portfolio Sales (Mass Company The caliber Affluent Strategy) enlargement as a financial service provider Ⅳ Ⅲ
Slide 21: "Orque d'or" Strategy
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities “Orque d’or” Strategy Trends in Wealth Management Company re: Operating revenue and Assets under Custody, etc. Number of Orque d’or members Investment trust balance（100 million ye
Slide 22: "Orque d'or" Strategy: Aoyama Start-up Ecosystem
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities “Orque d’or” Strategy Aoyama Start-up Ecosystem Nihonbashi 21
Slide 23: Access to Core Assets led by Portfolio Sales
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Access to Core Assets led by Portfolio Sales (Mass Affluent Strategy) Asset formation period Asset management period Decumulation period ＩＮ （Accumulation） （Before and after retire
Slide 24: Financial Planning Tool; Login Counts
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Access to Core Assets led by Portfolio Sales (Mass Affluent Strategy) Financial Planning Tool; Login Counts - Quarterly Trend (As of March 30, 2024) 23
Slide 25: Portfolio Sales trends
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Access to Core Assets led by Portfolio Sales (Mass Affluent Strategy) Portfolio Sales trends 【Millions of yen】 24
Slide 26: Stable Revenue/Fixed Cost Coverage Ratio
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Stable Revenue/Fixed Cost Coverage Ratio Stable Revenue/Fixed Cost Coverage Ratio trends 25
Slide 27: IFA Business
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities IFA Business Trends in Operating revenue and Assets under Custody/changes in Assets under Custody by segment Asset under Custody （Billions of yen） Assets under Custody by IFA segm
Slide 28: IFA Business: Operating revenue Trends by segment
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities IFA Business Operating revenue Trends by segment 27
Slide 29: Investment Banking Business
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Investment Banking Business IPO / SB 【FYE Mar.2024 IPO Ranking ～Total Underwritten Amount ～】 2023/4/1～2024/3/31 Amount Share Rank Underwriter No.of lssues (Millions of yen) （％） 1
Slide 30: Global Market Company
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Global Market Company Operating revenue trends by division (monthly average in each quarter) 29
Slide 31: Global Market Company
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Global Market Company Operating revenue trends of Institutional Investor Derivatives (interest rate/currency) revenue trends Millions of yen Sales Dept. and Equity Dept. Millions
Slide 32: Changes in NPS
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Tokai Tokyo Securities Customer Loyalty level Customer Loyalty Trend （As measured by the Changes in Tokai Tokyo Securities’ NPS® *) *The trend was analyzed with the NPS that Tokai Tokyo Securities earne
Slide 33: Performance recovery of the Joint Venture securities company
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Joint Ventures Performance recovery of the Joint Venture securities company Reduced structured bond sales once hurt the performance of JVs, but they have turned around with rapid recovery and expansion
Slide 34: Future strategies of the Joint Venture securities company
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Joint Ventures Future strategies of the Joint Venture securities company We keep driving forward the JV securities operation, aiming to accomplish further growth. <Contribution and characteristics of JV
Slide 35: Revitalizing investment vehicles
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Others Revitalizing investment vehicles Establishing a stable profit structure by portfolio optimization and discovering new opportunities 《Tokai Tokyo Global Investments’ Profit and Loss Trends 》 ・Divi
Slide 36: Expansion of stable revenue base (Insurance business)
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Others Expansion of stable revenue base (Insurance business) Securing stable profits by properly differentiating sales styles (door-to-door sales, small shop insurance sales) and sales approaches cateri
Slide 37: Initiatives for productivity improvement
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Efficiency/ productivity improvement Initiatives for productivity improvement Efforts to improve productivity using various digital tools in retail business 36
Slide 38: System investments
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Efficiency/ productivity improvement System investments Improve profitability and productivity through active investment in Strategic / DX projects, etc., and reduce cost by streamlining operation Strat
Slide 39: Office & branch network reconfiguration for higher efficiency
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Efficiency/ productivity improvement Office & branch network reconfiguration for higher efficiency Reduce real estate-related costs by consolidating branches at Tokai Tokyo Securities and reorganizing a
Slide 40: Reorganizing group companies and pursuing synergies
Ⅱ Progress of Medium-Term Management Plan The caliber enlargement as a financial service provider Efficiency/ productivity improvement Reorganizing group companies and pursuing synergies Achieved corporate reorganization to pursue efficient management of group companies and synergies ＴＴ Tokai Tokyo
Slide 41: Key measures to reach the New World
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World We will transform our business model by leveraging digital capabilities and collaborating with Powerful Partners. Digital ・CHEER Securities New Business model transformation New Bonanza ・Tokai Tokyo Digital Platform Powerf
Slide 42: Powerful Partners
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World Powerful Partners Forming business partnerships with Powerful Partners aspiring to become a great comprehensive financial platformer 41
Slide 43: Powerful Partners
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World Powerful Partners We are currently in negotiation with multiple potential institutions in varying non-financial sectors that may procure our group's diverse functions and services. 42
Slide 44: Powerful Partners
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World Powerful Partners We are currently in negotiation with multiple potential institutions in varying non-financial sectors that may procure our group's diverse functions and services. 43
Slide 45: New Bonanza: Asset management functionality
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World New Bonanza「Asset management functionality」 Placing Money Design and Tokai Tokyo Asset Management at the core of the group's asset management function 44
Slide 46: New Bonanza: Digital Bank
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World New Bonanza「Digital Bank」 As a comprehensive financial group, we aim for further growth and establish collaboration functions to offer banking and securities. 45
Slide 47: Tokai Tokyo Digital New World
Ⅱ Progress of Medium-Term Management Plan Key measures to reach the New World Tokai Tokyo Digital New World We will improve our bottom line by improving our top line through the advancement of alliances and synergy effects, and by thoroughly increasing efficiency. 46
Slide 48: Towards improving PBR
Ⅲ Towards improving PBR ・Efforts to improve PBR ・Financial capital policy ・Reduction of Strategic Equity Holdings 47
Slide 49: Efforts to improve PBR
Ⅲ Towards improving PBR Efforts to improve PBR We will improve business performance, achieve medium-term management plans, utilize capital effectively, and improve PBR. Efforts toward improving PBR Trends in PBR 48
Slide 50: Financial capital policy
Ⅲ Towards improving PBR Financial capital policy We aim to improve PBR by implementing a well-balanced use among dividend payments, capital allocation, and investment for growth. Consolidated net assets 192.9 Billion yen Capital in use 146.8 Billion yen Dividend policy ＜Dividend policy＞ (i) Dividend
Slide 51: Reduction of Strategic Equity Holdings
Ⅲ Towards improving PBR Reduction of Strategic Equity Holdings We aim to halve strategic equity holdings during the current medium-term management plan (end of March 2027) 50
Slide 52: Progress of the medium-term management plan
Ⅳ Progress of the medium-term management plan ・Group KGI ・Financial KPI ・Social Value & Justice KPI 51
Slide 53: Group KGI
Ⅳ Progress of the medium-term management plan Group KGI “Assets under Custody” has steadily increased. We aim to further improve our performance to achieve ROE target. FYE Mar. 2027 Target Values 12.0％ *2 12.0 Trillion yen *1. "ROE" after deducting UK corporate taxes on the past year income *2. Refe
Slide 54: Financial KPI
Ⅳ Progress of the medium-term management plan Financial KPI We achieved our plan for the parts, “Assets under Custody” and “Stable Revenue.” What remains to be done is to achieve an Ordinary Profit to “reach the New World”. FYE Mar. 2024 FYE Mar. 2027 Actual results Target Figures a financial servic
Slide 55: Social Value & Justice KPI
Ⅳ Progress of the medium-term management plan Social Value & Justice KPI We continuously promote efforts aimed to achieve the targets in all items. FYE Mar.2027 Target Figures Reduced by half Compared to FYE Mar. 2021 results （2,947t） Compared to Ordinary profit of FYE Mar. 2023 1.0% +20-point impro
Slide 56: Inquiries
Inquiries to be directed to: ◼ Corporate Communications Department, Tokai Tokyo Financial Holdings, Inc. ◼ TEL: +81-3-3517-8618 FAX: +81-3-3517-8314 ◼ E-mail: fh_ir@tokaitokyo-fh.jp This material is intended to provide information regarding the Company’s most recent operational result but NOT to sol
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