Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Investor Presentation (January 2010)
36 slides from Japan Securities Finance's investor presentation, January 2010
Slide 1: Financial Presentation for FY2010
Financial Presentation for FY2010 Japan Securities Finance Co.,Ltd This document is an English translation for non-Japanese investors convenience. Although Japan Securities Finance intends 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 2011
Financial Summary for Mar 2011 ¥ mil Parent Consolidated Mar2010 Mar2011 Change Mar2010 Mar2011 Change Operating ▲3,301 ▲5,020 20,940 17,639 (▲15.8%) 27,868 22,848 Revenues (▲18.0%) EX Premium ▲1,339 ▲3,058 Charges 15,167 13,827 (▲8.8%) 22,095 19,037 (▲13.8%) Operating Expenses 10,497 8,977 ▲1,520 1
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-10 Mar-11 20,817 17,558 【Margin Loan】 Securities Finance Bussiness 【Margin Loan】 Margin Loan Business 12,954 8,922 (46.5%) (39.0%) ・・ The The revenues revenues in in the the business business decreased decreased due due to to lowered lowered Interest on
Slide 5: Financial Highlights for Mar 2011
Financial Highlights for Mar 2011 1 Margin Margin Loan Loan Balance Balance for for FY2010 FY2010 Avg. Margin Avg. Stock Loan Rate Policy Rate \ mil Loan Loan （as of Mar） （as of Mar） Mar-10 Mar-11 Change \ bn \ bn ％ ％ Margin Loan Business 12,954 8,922 ▲3 1 .1 FY2010 293 228 0.77 0.00～0.10 3,324 2,80
Slide 6: Financial Highlights for FY2010
Financial Highlights for FY2010 2 Booked Booked Loss Loss in in Equity-Method Equity-Method Booked Loss in Equity-Method of ¥484mil due to a large amount of Loss on Devaluation of Investments in Securities in JBIS Holdings. \ mil Mar-10 Mar-11 change Operating Profit 5,898 3,655 ▲2,242 Loss in Equi
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies \ mil Mar 2011 Results Shareholding Ratio Operating Recurring Net Revenues * Income Income Consolidated 22,848 3,345 3,492 JSF - 17,639 2,553 1,613 JSF Trust Bank 100% 4,414 1,116 2,391 Nihon Building 100% 1,270 414 239 Equity-method - Loss in Equity-Method ▲484
Slide 8: Financial Results of JSF Trust Bank
Financial Results of JSF Trust Bank ¥mil Mar-10 Mar-11 change Recurring Revenues 6,019 4,414 ▲1,604 Trust charges 250 308 58 Recurring Income 1,670 1,116 ▲554 Extraordinary Profit ― 1,260 1,260 Net Income 1,900 2,391 491 Equity Ratio 19.88% 23.63% Due to lowered loan rate and lowered investment yi
Slide 9: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Mar-11) \mil 1% Mar-10 Sep-10 Mar-11 Notes 897,766 527,945 930,443 JGB 1year or less JGB 24% 1year or less 847,870 457,934 830,509 over 1Y 49,895 70,010 99,933 JGB over 1Y Municipal Bond 105,029 151,896 196,775 Governmen
Slide 10: Financial Results of JBIS Holdings
Financial Results of JBIS Holdings ¥mil Mar-10 Mar-11 change Revenues 40,532 37,707 ▲2,824 Operating Income ▲1,127 157 1,284 Recurring Income 196 1,728 1,532 Extraordinary Loss 1,613 1,485 ▲128 Corporation Tax etc. 565 851 285 Net Income ▲1,988 ▲618 1,369 Financial Financial Highlights Highlights
Slide 11: Estimated Figures for FY2011
Estimated Figures for FY2011 ¥mil Parent Consolidated Mar2011 FY2011 FY2010 Mar2011 FY2011 FY2010 1Q-2Q 1Q-4Q Results 1Q-2Q 1Q-4Q Results Operating 300 700 2,137 2,000 2,800 3,655 Income Recurring 1,000 1,600 2,553 2,100 3,200 3,345 Income Net Income 900 1,300 1,613 1,900 2,800 3,492 EPS (Yen) 9.67
Slide 12: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans FY2010 Results FY2010 Precondition Excess of Margin Loan Excess Excess of Excess of of Stock Loan Margin Loan ¥162bn Stock Loan ¥97bn ¥120bn ¥80bn Matching Matching ¥130bn ¥130bn Margin Loan Stock Loan Margin Loan Stock Loan ¥293bn ¥228bn ¥250bn ¥210bn Apr-11 Res
Slide 13: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil Mar 2011 Results Mar 2012 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 3,655 3,345 3,492 2,800 3,200 2,800 JSF － 2,137 2,553 1,613 700 1,600 1,300 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 \ tri Standardized Margin Buying Transactions (left) \ 1.8 Standardized Margin Selling Transactions (left) 12,00 0 Nikkei225(right) 1.6 Buying, Bottom M ar-09 1.4 \684bn 1.2 10,00 0 1.0 0.8 Selling, Bot tom Aug-10 0.6 \297bn 8,000 0.4 0.2 0.0 6
Slide 16: 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 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. ☆ To increase the number of Loanable Issues ● Select foreign stocks or listed investment funds (ETFs) to Loans for Margin Transactions by clos
Slide 18: Reinforcing Management Foundation
Reinforcing Management Foundation Group Risk Management system ・Improvement of the efficiency of risk management at JSF Trust Bank The business continuity system in a time of disaster ・Launch of the Backup system and office to ensure continuity in a time of disaster. ・The establishment of the basi
Slide 19: Business Continuity Plan at JSF
Business Continuity Plan at JSF JSF develops and continually improves business continuity plan to maintain the functions such as Margin Loan Business, which constitutes part of securities market infrastructure. The establishment of the basic policy in business continuity (Disclosed in September 20
Slide 20: Present Measures of JSF Group Company
Present Measures of JSF Group Company JSF Trust 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 or government gu
Slide 21: Dividend Policy
Dividend Policy Ｎｅｗ Dividend Policy Basically, Basically, Dividend Dividend Payout Payout Ratio Ratio of of about about 40% 40% onon Parent Parent Financial Financial Results, Results, and and considering considering Consolidated Consolidated DPR DPR or or Dividend Dividend on on Equity Equity (
Slide 22: Appendix
a Appendix
Slide 23: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 ※ Mar-11 Securities Finance Bussiness 29,075 34,917 38,619 34,427 20,817 17,558 Margin Loan Business 22,993 23,186 23,156 19,638 12,954 8,922 (61.8%) (53.3%) (45.8%) (44.3%) (46.5%) (39.0%) Interest on Loans 10,158 10,954 1
Slide 24: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 avg. 1,637,698 1,444,347 917,219 336,324 324,205 293,429 Margin Loans term-end 2,328,082 1,634,700 508,587 244,306 328,755 305,083 Bond Financing & General avg. 46,436 79,425 76,941 51,887 46,863 45,850 Loans term-end 97
Slide 25: JGB Balance
JGB Balance \ bn JSF 3,000 1.5 \ mil 2,500 1,117 JSF Mar-10 Sep-10 Mar-11 2,000 629 1.0 444 (1.03) JGB Balance 2,085,612 2,156,566 2,987,211 1,500 (.90) 1 year or less 1,641,497 1,527,707 1,870,087 (.77) 1,000 0.5 over 1Y 444,115 628,859 1,117,124 1,641 1,528 1,870 (15Y floating JGB) 193,314 194,014
Slide 26: 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 Japan Securities Finance Co.,Ltd 26
Slide 27: 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 Japan Securities Finance Co.,Ltd 27
Slide 28: Margin Transactions & Stock Loans
Margin Transactions & Stock Loans Margin Transactions and Nikkei225 Loan Rate of Loans for Margin Transactions \ tri \ 3.0 Standardized Margin Buying Transactions (left) 15,000 2.0% Standardized Margin SellingTransactions (left) Loan Rate Lending Fee Profit Margin 2.5 Nikkei225(right) 12,500 1.5% 1.
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%） 0.77% Fee 0.40% Dec
Slide 30: 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 Money of Stock Loan 8.0% Lending Fee 7.0% Profit Margin 6.0% 5.00% 5.0% Sep-93 4.0% 3.75% 3.0% N ov-10 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 31: 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 32: 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 33: Features of Balance Sheet (Parent)
Features of Balance Sheet （Parent） 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 o
Slide 34: Securities Account (Consolidated)
Securities Account（Consolidated） Mar-11 notes Mar-11 Assets Liabilities \mil \mil Collateral Money of Securities Loans 568,893 1,165,936 Lent Margin Loans 305,083 margin loan Margin Loans 196,442 Collateral Money of Securities 1,516,586 Borrowed Excess of Stock Loan 81,139 stock loan Securities Acco
Slide 35: 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 Fukuoka Transactions Loansfor Loans fornegotiable negotiablemargin margin Designated as transact
Slide 36: 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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