Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q1 FY2013 Earnings Presentation
27 slides from Japan Securities Finance's earnings presentation, April 2013
Slide 1: Financial Presentation for 1Q, FY2013
Financial Presentation for 1Q, FY2013 Japan Securities Finance Co., Ltd. This is the English translation of the document originally written in Japanese for non-Japanese convenience. Although Japan Securities Finance intends to faithfully translate the Japanese-written documents into English version,
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 1Q, FY2013
Financial Summary for 1Q, FY2013 ¥ mil Parent Consolidated FY2012 FY2013 Change FY2012 FY2013 Change 1Q 1Q 1Q 1Q Operating 307 343 3,661 3,969 (▲8.4%) 4,395 4,738 (7.8%) Revenues EX Premium ▲21 14 Charges 3,216 3,194 3,949 3,963 (▲0.7%) (0.4%) Operating Expenses 1,607 1,787 180 1,825 2,052 227 Gener
Slide 4: Breakdown of Operating Revenues by business
Breakdown of Operating Revenues by business Real Estate \ mil Jun-12 Jun-12 Jun-13 Management, 4.6% Securities Finance Bussiness 3,646 3,958 Margin Loan Business 1,213 2,111 Trust Banking, Margin Loan, (27.6%) (44.5%) 12.4% 27.6% Interest on Loans 451 983 Interest on collateral money of securities 1
Slide 5: Financial Highlights for FY2013, 1Q ①
Financial Highlights for FY2013, 1Q ① 1 Margin Margin Loan Loan Balance Balance for for 1Q, 1Q, FY2013 FY2013 \ mil Avg. Margin Avg. Stock Loan Rate Jun-12 Jun-13 Change Loan Loan （as of Jun） Margin Loan Business 1,213 2,111 74.0% bn bn ％ FY2013 1Q 476 177 0.77 Interest on Loans 451 983 117.9% FY201
Slide 6: Financial Highlights for FY2013, 1Q ②
Financial Highlights for FY2013, 1Q ② 2 Profit Profit on on bond bond investment investment decreased decreased \mil In JSF, profit on bond investment (both interest FY2012 FY2013 change income and trading income) decreased. 1Q 1Q JSF 1,690 937 ▲ 753 JSF Trust Bank 308 344 36 3 Allowance Allowance
Slide 7: Financial Results of Group Companies
Financial Results of Group Companies Subsidiary Affiliate （ ) Shareholding Ratio Japan Securities Finance （100%） （100%） （20.0%） （20.8%） JSF Nihon Japan Information ※ JSFIT Trust Bank Building Processing \ mil FY2013,1Q Results (Reference) Shareholding Operating Recurring Net FY2012 1Q Ratio Net Inco
Slide 8: Financial Results of JSF Trust Bank
Financial Results of JSF Trust Bank \mil FY2012 FY2013 change 1Q 1Q Recurring Revenues 640 565 ▲ 75 Trust charges 75 112 37 Ordinary Expenses 446 794 348 Provision for Allowance － 315 315 for Doubtful Receivables Recurring Income 194 ▲ 228 ▲ 423 Net Income 193 ▲ 229 ▲ 422 Equity Ratio 34.39% 44.77%
Slide 9: Estimated Figures for FY2013
Estimated Figures for FY2013 ¥mil Parent Consolidated FY2013 FY2013 FY2013 FY2013 FY2013 FY2013 1Q Results 1Q-2Q 1Q-4Q 1Q Results 1Q-2Q 1Q-4Q Operating 900 1,900 800 2,400 Profit 610 496 （－） （▲100） （▲300） （ ▲100） Recurring 1,100 2,300 1,000 2,800 Income 803 630 （－） （－） （▲200） （ ▲100） 700 1,600 500 1
Slide 10: Precondition: Balance of Margin Loans & Stock Loans
Precondition: Balance of Margin Loans & Stock Loans FY2013,1Q Results FY2013 Precondition Over-lent Over-lent Margin Loans Over-lent Margin Loans Over-lent ¥348bn Stock Loans Stock Loans ¥400bn ¥49bn ¥60bn Matching Matching ¥127bn ¥120bn Margin Loan Stock Loan Margin Loan Stock Loan ¥476bn ¥177bn ¥5
Slide 11: Appendix
a Appendix
Slide 12: Dividend Policy
Dividend Policy Dividend Policy Basically, Dividend Payout Ratio of about 40% on Consolidated Financial Results, Results considering Dividend on Equity (DOE) Ratio. FY2013 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY FY 2007 2008 2009 2010 2011 2012 2013 Forecast Annual Dividen
Slide 13: Breakdown of Operating Revenues by business (historical)
Breakdown of Operating Revenues by business (historical) \ mil Mar-09 Mar-10 Mar-11 Mar-12 Jun-12 Mar-13 Jun-13 Securities Finance Bussiness 34,427 20,817 17,558 15,186 3,646 14,093 3,958 Margin Loan Business 19,638 12,954 8,922 6,756 1,213 6,625 2,111 (44.3%) (46.5%) (39.0%) (33.4%) (27.6%) (37.5%)
Slide 14: Outstanding Loan Balance (Period average and term-end balance)
Outstanding Loan Balance (Period average and term-end balance) \ mil FY2012 FY2013 FY2008 FY2009 FY2010 FY2011 FY2012 1Q 1Q avg. 336,324 324,205 293,429 218,059 222,782 214,164 476,158 Margin Loans term-end 244,306 328,755 305,083 241,035 246,191 502,322 507,868 Bond Financing & General avg. 51,887
Slide 15: Margin Transactions & Margin Loans
Margin Transactions & Margin Loans \ tri 6 60% Margin Buying Balance 5 Margin Loan Balance 50% Ratio 4 40% 3 30% 2 20% 1 10% 0 0% 04 05 06 07 08 09 10 11 12 13 1.8 ￥tri 100% Margin Selling Balance 1.6 Stock Loan Balance 90% 1.4 Ratio 80% 70% 1.2 60% 1.0 50% 0.8 40% 0.6 30% 0.4 20% 0.2 10% 0.0 0% 04
Slide 16: Securities Account
Securities Account Jun-13 notes Jun-13 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 743,354 1,562,494 Lent Margin Loans 507,868 margin loan Margin Loans 136,219 stock loan Collateral Money of Securities 1,723,445 Borrowed Excess of Stock Loan 31,291 stock loan Securities A
Slide 17: 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 18: Balance of JGB held by group companies
Balance of JGB held by group companies \ mil JSF Sep-12 Mar-13 Jun-13 \ bn JSF 3,000 2.0 JGB Balance 1,681,442 1,050,772 1,132,349 2,500 1 year or less 946,967 650,205 563,221 (1.28) 1.5 over 1Y 734,475 400,567 569,127 2,000 (1.13) (1.47) (15Y floating JGB) 152,898 151,912 150,949 1,500 1.0 Net unre
Slide 19: Revenue Structure of Margin Loan Business
Revenue Structure of Margin Loan Business BLUE：Operating Revenues RED：Operating Expenses Interest on Loans （ B） ×0.77% Over-lent Fees on Lending Securities Interest on Margin Loans Over-lent （ Lending Fees ） Borrow ing （B） Stock Loans （ D） ×0.40% （ B） ×Funding rate Interest on collateral m oney （D）
Slide 20: 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 21: Loan Rates of Loans for Margin Transactions
Loan Rates of Loans for Margin Transactions 1 0. 0% 9. 0% 8.75% Loan R ate Interest Rate on C ollateral Money of S tock Loan 8. 0% Lending Fee 7. 0% P rofit 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 8 9 90 9 1 9 2 93 9 4 95 96 9 7 9 8 9 9 00 0
Slide 22: 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 Numbe
Slide 23: The 3rd Mid-term Management Plan (FY2012-FY2014)
The 3rd Mid-term Management Plan（FY2012～FY2014） solidcredibility ・Establishsolid ・Establish credibility solidequity ・Retainsolid ・Retain equitycapital, capital,stable stableand andlong-term long-termreturn return ofprofits of profitsto toshareholders shareholders solidifythe ・Furthersolidify ・Furthe
Slide 24: JSF Trust Bank (Loan & Securities)
JSF Trust Bank (Loan & Securities) ● Loan Balance by Industry ● Securities Holdings \mil \mil Sep-12 Mar-13 Jun-13 Sep-12 Mar-13 Jun-13 Notes Loan Loan Loan Balance ratio Balance ratio Balance ratio JGB 346,931 172,968 324,221 Manufacturing 31,047 30.1% 23,386 29.4% 23,084 29.0% less than 1Y 266,998
Slide 25: Financial Summary for 1Q, FY2013 (former OSF)
Financial Summary for 1Q, FY2013 （former OSF） ¥mil FY2012 FY2013 Change 1Q 1Q FY2012 Operating ▲102 743 641 (▲13.7%) 2,957 Revenues Operating Expenses 249 258 9 935 Operating Profit 494 383 ▲111 2,021 General & Administrative Expenses 550 556 6 2,032 Operating ▲116 ▲56 ▲172 (－%) ▲11 Income Recurring
Slide 26: Securities-related Business by JSF Group Companies
Securities-related Business by JSF Group Companies TSE TSE Securities Finance Business Sapporo Sapporo JapanSecurities SecuritiesFinance Finance Fukuoka Japan Loansfor Loans forMargin Margin Fukuoka Transactions Transactions Designated Securities Finance Loansfor Loans fornegotiable negotiablemargin
Slide 27: Notice
Notice This document includes statements for business forecast. These statements do not guarantee company’s future achievement and they involve risk or uncertain factors. Company’s future achievement may be changed drastically up to stock market or financial conditions. Japan Securities Finance Co.,
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