Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — FY2012 Earnings Presentation
39 slides from Japan Securities Finance's earnings presentation, May 2013
Slide 1: Financial Presentation for FY2012
Financial Presentation for FY2012 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 2013
Financial Summary for Mar 2013 ¥ mil Parent Consolidated Mar2012 Mar2013 Change Mar2012 Mar2013 Change Operating ▲1,121 ▲2,553 15,276 14,154 20,229 17,675 Revenues (▲7.3%) (▲12.6%) EX Premium ▲932 ▲2,364 Charges 12,128 11,196 17,082 14,718 (▲7.7%) (▲13.8%) Operating Expenses 8,311 7,015 ▲1,296 9,634
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Real Estate ( )：ratio of OR Mar-12 Management, Mar-12 Mar-13 4.0% Securities Finance Bussiness 15,186 14,093 Trust Banking, Margin Loan Business 6,756 6,625 20.9% Margin Loan, (33.4%) (37.5%) 33.4% Interest on Loans 1,783 1,760 Interest on collateral money o
Slide 5: Financial Highlights for FY2012 ①
Financial Highlights for FY2012 ① 1 Margin Margin Loan Loan Balance Balance for for FY2011 FY2011 \ mil Avg. Margin Avg. Stock Loan Rate Policy Rate Loan Loan （as of Mar） （as of Mar） Mar-12 Mar-13 Change \ bn \ bn ％ ％ Margin Loan Business 6,756 6,625 ▲1.9% FY2012 214 183 0.77 0.00～0.10 Interest on L
Slide 6: Financial Highlights for FY2012 ②
Financial Highlights for FY2012 ② 2 Profit Profit on on bond bond investment investment decreased decreased ¥ bn FY2011 FY2012 change JSF 5.8 4.7 ▲1.1 JSF Trust Bank 3.1 1.8 ▲1.3 3 Profit Profit and and Loss Loss about about Equity-Method Equity-Method affiliate affiliate improved improved ¥ bn FY20
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 FY 2012 Results (Reference) Shareholding Operating Recurring Net FY2011 Ratio Net Income Reve
Slide 8: Financial Results of JSF Trust Bank
Financial Results of JSF Trust Bank ¥mil Mar-12 Mar-13 change Recurring Revenues 4,245 2,859 ▲1,385 Trust charges 300 339 38 Recurring Income 1,635 176 ▲1,459 Net Income 1,540 95 ▲1,444 Equity Ratio 33.07% 45.05% Financial Trust charges were the best ever because of the expansion Financial Highlig
Slide 9: Estimated Figures for FY2013
Estimated Figures for FY2013 Precondition Balance of Margin Loans FY2013 Precondition Excess of ¥mil Margin Loan Excess of FY2013 Estimated Figures (Reference) ¥320bn Stock Loan FY2012 Operating Recurring Net ¥90bn Net Income Income Income Income Matching 2,500 2,900 1,800 ¥120bn Consolidated 1,777
Slide 10: Management Matters
a Management Matters
Slide 11: Margin Transactions & Margin Loans
Margin Transactions & Margin Loans ￥tri 3.0 30% Margin Buying Balance（Left） Margin Loan Balance（Left） 2.5 25% Ratio（Right） 2.0 20% 1.5 15% 1.0 10% 0.5 5% 0.0 0% '11/04 '11/07 '11/10 '12/01 '12/04 '12/07 '12/10 '13/01 '13/04 ￥tri 0.8 80% Magin Selling Balance（Left） 0.7 Stock Loan Balance（Left） 70% Ra
Slide 12: The rule relaxation of the deposit of Margin Transaction
The rule relaxation of the deposit of Margin Transaction (rate ) （\ tri） 3.0 3.0 Margin Buying Balance（Right） Margin Selling Balance（Right） 2.5 Individual Magin Transaction Value(Left） 2.5 Total Trading Value(Left） 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 2012/12 2013/1 2013/1 2013/1 2013/1 2013/2 20
Slide 13: Margin Loans Balance (Apr. 2012～)
Margin Loans Balance (Apr. 2012～） \ bn \ bn 600 600 Margin Loan Balance Stock Loan Balance 500 500 400 400 Precondition FY2013 Precondition FY2013 \ 210 bn \ 440 bn 300 300 200 200 100 100 Avg.FY2012 \ 214 bn Avg.FY2012 \ 183 bn 0 0 '12/04 '12/07 '12/10 '13/01 '13/04 '12/04 '12/07 '12/10 '13/01 '13/
Slide 14: Margin Loan and Nikkei Stock Average
Margin Loan and Nikkei Stock Average Margin Loan Balance(TSE) and Nikkei Stock Average Nikkei Stock （\ bn） Average (\) 19,000 Margin Loan 3,000 Peak \ 2,712 bn Nikkei Stock Average (Left) 18,000 2,750 Margin Loan (Right) Stock Loan (Right) 17,000 2,500 16,000 '07/12 2,250 Nikkei Stock Average 15,000
Slide 15: Comprehensive Review of the Short Selling Regulation
Comprehensive Review of the Short Selling Regulation Current Comprehensive Review (Proposed) Prohibition of short selling at the same or Applied only when the price fall below a certain ①Uptick rule lower price than the most recent price threshold(10% fall in price relative to the previous published
Slide 16: Overview of the Merger with OSF
Overview of the Merger with OSF ・The business combination of TSE and OSE and the consolidation of the Background cash equities markets and •To meet the needs of equity market participants and investors and to Reasons improve the efficiency of the equity market •Significant Synergy effects Scheduled
Slide 17: Management Policy after Merger
Management Policy after Merger Management Policy Establish solid credibility Retain solid equity capital, stable and long-term return of profits to shareholders Further solidify the profit base Further improve the efficiency of organizational and business management ⇒ No change Focus on merg
Slide 18: Stabilization Fund Loan ①
Stabilization Fund Loan ① Net Stable Funding Ratio of Basel 3 Available amount of stable funding Net Stable Funding Ratio ＞100％ Required amount of stable funding Required amount of stable funding Available amount of stable funding Cash, Securities and Loans with 0% Capital(Tier1, Tier2, etc ) 100％ m
Slide 19: Stabilization Fund Loan ②
Stabilization Fund Loan ② Stabilization Fund Loan ・Respond to medium- and long- term stable funding needs corresponding to Basel 3 rules. ・Provide constant loan period more than 1 year by [2 year loans] + [Evergreen Structure]. The case of Loan using Evergreen structure Date of Borrowing (Or latest
Slide 20: JSF Trust Bank
JSF Trust Bank As Asaatrust trustbank banksupporting supportingthe thebusiness businessinfrastructure infrastructureof ofsecurities securitiescompanies, companies, etc., JSF Trust and Banking Co., Ltd. provides customers with finely-tuned etc., JSF Trust and Banking Co., Ltd. provides customers with
Slide 21: Dividend Policy
Dividend Policy Dividend Policy Basically, Dividend Payout Ratio of about 40% on Consolidated Financial Results, Results considering Dividend on Equity (DOE) Ratio. FY2012 ：Annual ¥14（Interim ¥7, year-end ¥7） FY2013 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY FY 2007 2008 2009
Slide 22: Appendix
a Appendix
Slide 23: The 3rd Mid-term Management Plan（FY2012～FY2014）
The 3rd Mid-term Management Plan（FY2012～FY2014） ・Establishsolid ・Establish solidcredibility credibility ・Retainsolid ・Retain solidequity equitycapital, capital, stable stableand andlong-term long-term returnof return ofprofits profitstotoshareholders shareholders ・Furthersolidify ・Further solidifyth
Slide 24: Improve the convenience of Margin Loan Business
Improve the convenience of Margin Loan Business Increase the number of Loanable Issues JSF Web System ・ Boost approach to listed companies. JSF Web System Client Ａ Client Ｂ Client ｎ JSF Certificate Authority IE IE IE IE ・Provide Margin Loans application using the Publish Client Certificate Internet.
Slide 25: Revenue Structure of Margin Loans
Revenue Structure of Margin Loans BLUE：Operating Revenues RED：Operating Expenses Interest on Loans （B）×0.77% Excess of Fees on Lending Securities Interest on Borrowing Margin Loan Exess of （Lending Fees） （B）×Funding rate （B） Stock Loan （D）×0.40% Interest on collateral money of （D） securities procure
Slide 26: 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 27: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 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 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 09
Slide 28: 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 29: JGB Balance
JGB Balance \ bn JSF \ mil 3,000 2.0 JSF Mar-12 Sep-12 Mar-13 2,500 JGB Balance 2,094,731 1,681,442 1,050,772 1.5 2,000 (1.19) (1.13) 1 year or less 1,318,655 946,967 650,205 776 (1.28) over 1Y 776,076 734,475 400,567 1,500 1.0 734 (15Y floating JGB) 152,747 152,898 151,912 1,000 Net unrealized gain
Slide 30: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-08 Mar-09 Mar-10 ※ Mar-11 Mar-12 Mar-13 Securities Finance Bussiness 38,619 34,427 20,817 17,558 15,186 14,093 Margin Loan Business 23,156 19,638 12,954 8,922 6,756 6,625 (45.8%) (44.3%) (46.5%) (39.0%) (33.4%) (37.5%) Interest on Loans 10,581 3,899 3,32
Slide 31: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 avg. 917,219 336,324 324,205 293,429 218,059 214,164 Margin Loans term-end 508,587 244,306 328,755 305,083 241,035 502,322 Bond Financing & General avg. 76,941 51,887 46,863 45,850 50,893 55,865 Loans term-end 68,594 53,
Slide 32: Securities Account（Consolidated）
Securities Account（Consolidated） Mar-13 notes Mar-13 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 732,475 983,076 Lent Margin Loans 502,322 margin loan Margin Loans 216,206 stock loan Collateral Money of Securities 1,092,112 Borrowed Excess of Stock Loan 106,559 stock loan
Slide 33: 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 34: Rating Information
Rating Information JCR R&I Standard & Poor’s As of 31/Mar/2013 Rating Outlook Rating Outlook Rating Outlook Japan Long-term AA- Stable AA- Stable A Stable Securities Short-term J-1+ a-1+ A-1 Finance （Highest） （Highest） CP Issue ¥1tri ¥1tri ― JSF Trust Long-term A+ Stable A+ Stable ― ― Bank Short-ter
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 Transactions Fukuoka Designated as securitiers Loansfor Loans fornegotiable negotiablemargin mar
Slide 36: JSF Trust Bank (Loan & Securities)
JSF Trust Bank (Loan & Securities) ● Loan Balance by Industry ● Securities Holdings \mil \mil Mar-12 Sep-12 Mar-13 Mar-12 Sep-12 Mar-13 Notes Loan Loan Loan Balance ratio Balance ratio Balance ratio JGB 407,669 346,931 172,968 Manufacturing 31,859 32.1% 31,047 30.1% 23,386 29.4% less than 327,732 26
Slide 37: Estimated Figures for FY2013
Estimated Figures for FY2013 ¥mil Parent Consolidated FY2013 FY2013 FY2012 FY2013 FY2013 FY2012 1Q-2Q 1Q-4Q Results 1Q-2Q 1Q-4Q Results Operating 900 2,000 1,290 1,100 2,500 1,787 Income Recurring 1,100 2,300 1,560 1,200 2,900 2,557 Income Net Income 700 1,400 1,025 700 1,800 1,777 EPS (Yen) 7.52 15
Slide 38: Financial Result of Osaka Securities Finance
Financial Result of Osaka Securities Finance ¥ mill Non-consolidated FY2011 FY2012 Change ▲507 Operating Revenues 3,464 2,957 (▲14.6%) Operating Expenses 1,249 935 ▲314 General & Administrative 2,191 2,032 ▲159 Expenses ▲35 Operating Profit 24 ▲11 (－%) ▲56 Recurring Income 263 207 (▲21.1%) Extraordi
Slide 39: 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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