Sbi Holdings Incorporated · TSE:8473
Sbi — Sbi Holdings Inc Ord — H1 FY2020 Earnings Presentation
158 slides from Sbi's earnings presentation, Oct 21, 2020
Slide 1: SBI Holdings, Inc. Financial Results for the Six-month Period Ended September 30, 2020
Strategic Business Innovator SBI Holdings, Inc. Financial Results for the Six-month Period Ended September 30, 2020 (Fiscal Year Ending March 31, 2021) October 28, 2020
Slide 2: Disclaimer
The items in this document are provided as information related to the financial results and the business strategy of the SBI Group companies and not as an invitation to invest in the stock or securities issued by each company. None of the Group companies guarantees the completeness of this document
Slide 3: Agenda
I. 1H FY2020 consolidated financial results (IFRS) II. The Group's competitive advantage became clear in the COVID-19 crisis III. Business fields to focus on for new innovations toward future business developments [Unauthorized reproduction prohibited] 2
Slide 4: 1H FY2020 consolidated financial results (IFRS) overview
I. 1H FY2020 consolidated financial results (IFRS) [Overview of Consolidated Financial Results] • Revenue increased 18.7% year-on-year to JPY 228.2bn, and profit before income tax expense rose 13.5% year-on-year to JPY 54.5bn, which were historical highs for a half- year period, since the adoption o
Slide 5: 1H FY2020 Consolidated Performance (IFRS)
1H FY2020 Consolidated Performance (IFRS) (Unit: JPY million) 1H FY2019 1H FY2020 YoY % (Apr.-Sept. 2019) (Apr.-Sept. 2020) change Revenue 192,147 Record high 228,165 +18.7 Profit before income tax Record expense 48,049 high 54,512 +13.5 Profit for the period 35,077 38,164 +8.8 Profit attributable t
Slide 6: Consolidated Profit Comparison with Major Face-to-face Securities Companies
Consolidated Profit Comparison with Major Face-to-face Securities Companies (Unit: JPY million) 1H FY2018 1H FY2019 1H FY2020 YoY % (Apr. 2018 – Sept. 2018) (Apr. 2019-Sept. 2019) (Apr. 2020-Sept. 2020) change Profit before income SBI Holdings tax expense 54,195 48,049 54,512 +13.5 (IFRS) ROE(％) * 1
Slide 7: 1H FY2020 Performance by Segment (IFRS)
1H FY2020 Performance by Segment (IFRS) [Year-on-year comparison] Profit before Income (Unit: JPY million) Revenue Tax Expense YoY % 1H FY2019 1H FY2020 YoY % 1H FY2019 1H FY2020 change / (Apr. 2019– (Apr. 2020– (Apr. 2019– (Apr. 2020– Sept. 2019) Sept. 2020) change Sept. 2019) Sept. 2020) YoY chang
Slide 8: Interim Dividend of JPY 20 Per Share Declared
Interim Dividend of JPY 20 Per Share was Declared [Basic policy for shareholder return] Conduct shareholder returns with a target of achieving a total shareholder return ratio, as calculated by the sum of dividend payouts and share repurchase costs, of 40% as a minimum ■ Dividend forecast (result) p
Slide 9: Financial Services Business
1. Financial Services Business (1) Securities-related business(SBI SECURITIES) SBI SECURITIES’ consolidated results for 1H FY2020 recorded operating income of JPY 27.2bn, up 50.7% year-on-year, and profit attributable to owners of the company of JPY 19.0bn, up 61.8% YoY, as a result of an increase i
Slide 10: SBI SECURITIES 1H FY2020 Consolidated Results
SBI SECURITIES 1H FY2020 Consolidated Results (J-GAAP) [Year-on-year comparison] (Unit: JPY million) 1H FY2019 1H FY2020 YoY % (Apr. 2019 – Sept. 2019) (Apr. 2020 – Sept. 2020) change Operating Revenue 57,864 Record high 74,030 +27.9 Net Operating Revenue 51,972 Record high 68,858 +32.5 Operating In
Slide 11: Average Daily Individual Brokerage Trading Value
Average Daily Individual Brokerage Trading Value (2 Market Total *) (JPY billion) Average daily individual brokerage trading value (left-side scale) (JPY) End-of-month Nikkei Average (right-side scale) 24,000 200 1Q FY2020 20,000 Individual Brokerage +52.4% trading value 150 1Q FY2019 JPY 149,070.0b
Slide 12: SBI SECURITIES' Stock Brokerage Trading Value and Commissions
SBI SECURITIES’ Stock Brokerage Trading Value and Commissions (JPY trillion) (JPY million) Stock Brokerage Trading Value Commissions 80 25,000 69.2 21,689 70 20,000 +61.7% 60 +73.5% YoY YoY 50 15,000 13,416 39.9 40 10,000 30 20 5,000 10 0 0 1H 1H 1H 1H FY2019 FY2020 FY2019 FY2020 [Unauthorized repro
Slide 13: SBI SECURITIES' Overwhelming Position at Securities Industry
SBI SECURITIES’ Overwhelming Position at [1H FY2020 results] Securities Industry Share of individual stock trading value (%) Number of Deposit Operating of which, accounts assets income individual margin (thousand) (JPY trillion) (JPY million) Trading SBI *1 (cons.) 40.3 41.5 5,959 16.2 27,237 Rakut
Slide 14: Banking-related business (SBI Sumishin Net Bank)
(2) Banking-related business (SBI Sumishin Net Bank) SBI Holdings’ equity method earnings of SBI Sumishin Net Bank, based on IFRS for 1H FY2020 was JPY 4,014mn, up 7.6% year-on-year, owing to the steady progress in housing loans and profits through bond investments, etc. * 1H FY2020 financial result
Slide 15: SBI Sumishin Net Bank 1H FY2020 Results (IFRS)
SBI Sumishin Net Bank’s 1H FY2020 Results Continue to Show an Upward Trend (IFRS) SBI Holdings’ equity in earnings of SBI Sumishin Net Bank based on IFRS for 1H FY2020 was JPY 4,014m, up 7.6% year-on-year (JPY million) 4,014 4,000 3,729 3,000 2,000 YoY + 7.6% 1,000 0 1H FY2019 1H FY2020 Note: Owing
Slide 16: SBI Sumishin Net Bank Ordinary Income after Start of Operations
Change in SBI Sumishin Net Bank’s Ordinary Income (J-GAAP) after Start of Operations -Full-year earnings are also expected to record the highest ever for the fiscal year ending Mar. 31, 2021 (J-GAAP)- Achieved a single month profit for the first time in Jan. 2009 (JPY Achieved a single quarter profi
Slide 17: Accounts and Deposits Exceed 4.2 Million and JPY 5.7tn
As of the End of September 2020, the Balance of Accounts and Deposits Exceeded 4.2 Million Accounts and JPY 5.7tn, Respectively, to Significantly Surpass Its Competitors Accounts：4,203,489 / Deposits：JPY 5,743.7bn (As of the end of Sept. 2020) Change in SBI Sumishin Net Deposits of 6 Internet Banks
Slide 18: Insurance-related business (SBI Insurance Group)
(3) Insurance-related business (SBI Insurance Group) • SBI Insurance Group’s total number of in force contracts as of the end of Sept. 2020 remained steady at approximately 2.24m*1, partly owing to the positive impact of lifestyle changes brought about by COVID-19 *1 Including the number of in force
Slide 19: SBI Insurance Group's Performance (Preliminary Figures)
(3) Insurance-related business SBI Insurance Group’s Performance (Preliminary Figures) * Final consolidated figures for 1H FY2020 will be released on Nov. 12 Consolidated results for 1H FY2020 (J-GAAP) (Unit: JPY million) 1H FY2019 1H FY2020 YoY % (Result) (Preliminary) change (Apr. – Sept. 2019) (A
Slide 20: SBI Insurance Group's In Force Contracts Steadily Increased
(3) Insurance-related business SBI Insurance Group’s Total Number of In Force Contracts Steadily Increased • In Sept. 2020, SBI Insurance Group acquired all shares of Joguchi Safety SSI, which deals with rental housing insurance in Hokkaido • SBI Insurance Group will continue to expand its business
Slide 21: Asset Management Business
2. Asset Management Business • Although gains and losses from the changes in the fair value evaluation of investees for 1H FY2020 decreased year-on-year to JPY 15.4bn, during the July to Sept. period of FY2020, valuation gains of JPY 7.3bn were realized, owing to IPOs from existing funds such the Fi
Slide 22: Asset Management Business 1H FY2020 Performance Overview
2. Asset Management Business: Asset Management Business’ 1H FY2020 Performance Overview (IFRS) (JPY billion) YoY % 1H FY2019 1H FY2020 change Revenue 75.9 82.1 +8.2 Profit before income tax expense 33.9 24.8 (*1) -26.8 SBI SAVINGS BANK 8.4 13.9 +65.5 Profit/loss from the change in fair value and pro
Slide 23: Number of IPOs and M&As Expected at Same Level
2. Asset Management Business: The Number of IPOs and M&As are Expected to be at the Same Level as that in the Previous Fiscal Year Full-year FY2020 Full-year FY2019 Prospects IPO・M&A Deals 24 Over 25 In this current fiscal year, 5 companies were IPO’d and one was M&A’d thus far EXIT Date Company Mar
Slide 24: SBI SAVINGS BANK's Underlying Earnings Increased Steadily
2. Asset Management Business: SBI SAVINGS BANK's Underlying Earnings have Increased Steadily, as Its Prime Assets have Grown Total assets exceed Changes in Indicators since becoming a subsidiary KRW 10tn as the end of June (K-GAAP) (KRW billion) (％) 10,808.8 Delinquency rate for all loans (Right sid
Slide 25: SBI SAVINGS BANK Surpasses Previous Year's Full-year Results
2. Asset Management Business: SBI SAVINGS BANK Surpasses Full-year Results of the Previous Year in the 9M FY2020 Period -Record net profit for the year- <Net profit (Jan. to Sept. 2020; K-GAAP)> (KRW billion) * Figures for the Q4 of the year Annual figure is ending December 31, 2019 KRW 188.2 billio
Slide 26: Morningstar Japan Moves to TSE First Section
2. Asset Management Business: Morningstar Japan, which Celebrates its 20th Anniversary of Being Listed on the Stock Exchange, Changes its Listing to the First Section of the Tokyo Stock Exchange from the JASDAQ on Oct. 19 ~Record-high sales for fourth consecutive year and record-high ordinary income
Slide 27: E-Advisor Investment Advisory Service App for DC Plans
2. Asset Management Business: E-Advisor, a Subsidiary of Morningstar Japan, Plans to Offer an Investment Advisory Service App for Corporate Defined Contribution Plans -Strengthening our approach to companies The number of corporate DC subscribers exceeds adopting defined contribution- 7.5 million (A
Slide 28: SBI Group AUM Reached JPY 3.6tn; Targets JPY 5tn and 10tn
SBI Group’s Assets Under Management, Including Private Equity, have Already Reached JPY 3.6tn, and will Endeavor to Increase AUM to JPY 5tn within 2 years, and JPY 10tn within 5 Years (JPY billion) 4,000 3,652.4 3,600 3,200 Announced that Leos Inc. had become a subsidiary 2,800 Investment trusts, et
Slide 29: Biotechnology-related Business
3. Biotechnology-related Business Profit before Income Tax Expense of the Biotechnology-related Business (IFRS) (JPY million) 1H FY2019 1H FY2020 (Apr. – Sept. 2019) (Apr. – Sept. 2020) SBI Biotech -197 -82 Quark Pharmaceuticals (“Quark”) -3,598 -1,854 5 business related SBI Pharmaceuticals -587 -94
Slide 30: Impact of COVID-19 on Quark's AKI Clinical Trials
Impact of COVID-19 (Novel Coronavirus) Epidemic on the Clinical Trials for U.S. Quark’s Acute Kidney Injury (AKI) Prophylaxis Current status of clinical trials affected by COVID-19 The recruitment of subjects necessary to complete the clinical trial was completed as of June 18 Follow-up observat
Slide 31: SBI Pharmaceuticals 5-ALA Drug R&D
SBI Pharmaceuticals Engages in the Research and Development of 5-ALA-related Drugs -Progress in the main pipeline of pharmaceutical products utilizing 5-ALA- Current status Fields Pipeline projects Phase I Phase II Phase III Cisplatin nephropathy 1 protection Phase II is completed (by SBI Pharmaceut
Slide 32: SBI ALApromo Functional Foods Development
SBI ALApromo Accelerates the Development of New Foods with Functional Claims Offering of foods with functional claims: Function to improve high levels of fasting blood Cognitive improvement glucose levels and postprandial glucose levels “SBI Ichoha” utilizing • “ALA PLUS Tou (Sugar) Down” utilizing
Slide 33: Number of Domestic Stores Offering 5-ALA Health Foods
Number of Domestic Stores that Offer Health Foods Containing 5-ALA are Increasing Steadily Number of stores that offer SBI ALApromo products (stores) (Jan. 2014 – Oct. 27, 2020) 20,000 18,000 As of Oct. 27, 2020: 17,396 The leading drug store chains started 16,000 selling 5-ALA products: e.g. 14,000
Slide 34: The Group's competitive advantage became clear in the COVID-19 crisis
II. The Group's competitive advantage became clear in the COVID-19 crisis 1. The Group's online utilization, which was in place since its inception, led to a further increase in customers and in revenue (sales), in the wake of the COVID-19 crisis 2. Strategies to further strengthen competitive advan
Slide 35: Online utilization led to increase in customers and revenue
1. The Group's online utilization, which was in place since its inception, led to a further increase in customers and in revenue (sales), in the wake of the COVID-19 crisis [Unauthorized reproduction prohibited] 34
Slide 36: SBI's Brokerage Accounts Surpassed Nomura to Become No.1
(1) Securities-related business: SBI's Number of Brokerage Accounts has Surpassed that of Nomura, to Become No.1 in the Industry Number of Accounts of SBI SECURITIES and 2 Major Face-to-face Securities Companies (Mar. 2009 – Sept. 2020) (thousand accounts) CAGR: % (Mar. 2009-Sept. 2020) 6,400 SBI SE
Slide 37: SBI SECURITIES Surpassed Nomura in NISA Accounts
(1) Securities-related business: SBI SECURITIES also Surpassed Nomura in the Number of NISA Accounts, to Become No.1 in the Industry (thousand Number of NISA accounts NISA’s customer attribute of accounts) (Sept. 2015 – Sept. 2020) 1,882 SBI SECURITIES (%) Nomura 1,750 Existing Number of new 1,753 c
Slide 38: Strengthening the iDeCo Pension Business
(1) Securities-related business: Further Strengthening the Individual Defined Contribution (iDeCo) Pension Business The SBI Group has been focused on the Individual Defined Contribution (iDeCo) pension business, well before the expectations for the market size expansion as a result of revisions in t
Slide 39: SBI SECURITIES Industry Leader in iDeCo Customers
(1) Securities-related business: SBI SECURITIES is the Industry Leader in the Cumulative Number of Individual Defined Contribution Plan (iDeCo) Customers (No. of Cumulated number of customers (subscribers & transfers*) thousand of iDeCo by planning administrator SBI SECURITIES customers) (Nov. 2017
Slide 40: SBI SECURITIES' Productivity Extremely High vs Face-to-face Companies
(1) Securities-related business: SBI SECURITIES’ Productivity is Extremely High, as Compared to Major Face-to-face Securities Companies Comparison of operating revenue and operating income per employee between SBI Securities and major face-to-face securities companies (JPY million) 150 151 operating
Slide 41: SBI Sumishin Net Bank Expanding Faster than Competitors
(2) Banking-related business SBI Sumishin Net Bank is Expanding Its Business Base Much Faster than Its Competitors Change in deposit balance at each specialized internet banks (JPY billion) (Mar. 2001 - Sept. 2020) SBI Sumishin SBI Sumishin Net Bank As of Oct. 26, 2020 Net Bank (Start of operation:
Slide 42: Mortgage Volume Growing Rapidly
(2) Banking-related business Mortgage Volume is Growing Rapidly, with the Offering of Lower Interest Rates and More Convenient Products (*1) Change in Balance of Housing Loans (Mar. 2008 – Sept. 2020) *1 Deducts repayments from the cumulative total of new loans. Includes housing loans (JPY billion)
Slide 43: Productivity of SBI Sumishin Net Bank vs Megabanks
(2) Banking-related business Productivity of SBI Sumishin Net Bank Greatly Outperforms Megabank Companies Comparison of ordinary income per employee and ordinary profit per employee between SBI Sumishin Net Bank and other mega banks Ordinary income Ordinary profit (JPY million) 150 142 131 120 114 9
Slide 44: Insurance Business Strength as Online Business in COVID-19
(3) Insurance-related business Insurance Business Displays Its Strength as an Online Business During the COVID-19 Crisis Premium income increased during 1Q FY2020, when the impact of the COVID-19 crisis was significant SBI Insurance SBI Life Insurance Percentage change in direct Percentage change in
Slide 45: More Productive Business Model than Face-to-face Insurers
(3) Insurance-related business Establish a More Productive Business Model, as Compared to the Major Companies, Who are Primarily Engaged in Face-to-face Sales SBI Insurance SBI Life Insurance Net expense (labor costs, Premium income* per advertising costs, etc.) ratio in employee in FY2019 (%) FY201
Slide 46: Strategies to further strengthen competitive advantages
2. Strategies to further strengthen competitive advantages during the COVID-19 crisis (1) Proactively promote M&A and alliances with various companies of different industries, to increase the growth potential of each business area (2) Steadily advance the Neo-securitization process (3) SBI Sumishin
Slide 47: Proactively promote M&A and alliances
(1) Proactively promote M&A and alliances with various companies of different industries, to increase the growth potential of each business area ① In the securities-related business, proactively engaged in M&A activities to further strengthen overall capabilities ② Expanding the customer base throug
Slide 48: M&A activities in the securities-related business
① In the securities-related business, proactively engaged in M&A activities to further strengthen overall capabilities -Taking advantage of the decline in asset prices owing to the COVID-19 crisis as an opportunity, will utilize the funds (JPY 70bn) raised through the issuance of CBs as funds for M
Slide 49: The SBI Group's Current Approach for M&A Activities
The SBI Group’s Current Approach for M&A Activities M&A targets in the securities-related business • Strengthen competitiveness through synergistic effects with existing businesses and cross-evolution • Expanding economies of range (scale) • A stepping stone toward global expansion, with a focus o
Slide 50: Acquisition of All Shares of livestar Securities
Acquisition of All Shares of livestar Securities (Oct. 1, 2020) [livestar Securities] • Since Dec. 2019, livestar Securities has been proactively reducing their investment costs, including a waiver of margin trading fees, along with reducing their margin trading rates, which has garnered widespread
Slide 51: SBI SECURITIES' Share of Individual Stock Trading
SBI SECURITIES’ Share of Individual Stock Trading -Immediate target for margin trading market share is 50%- Share of Individual Stock (of which) Share of Individual Trading Value (%) Margin Trading Value (%) 1H FY2020 1H FY2020 (Apr. 2020 – Sept. 2020) (Apr. 2020 - Sept. 2020) Others (including majo
Slide 52: M&A Activities in the Crypto-asset Domain
Advance M&A Activities in the Crypto-asset Domain • Obtained approval from the UK's Financial Conduct Authority to acquire a 90% stake in B2C2, a global crypto-asset market maker, and expects it to become a consolidated subsidiary during the current fiscal year. Additionally, the company started con
Slide 53: Rheos Capital Works Became a Consolidated Subsidiary
Absorbed Rheos Capital Works as a Consolidated Subsidiary, to Increase the Group's AUM and Enhance Investment Methods • Acquired 51.28% of the outstanding shares of Rheos Capital Works, a company that manages investment trusts under the “Hifumi” brand, which has received high praise from individual
Slide 54: Customer Base Expansion through Cross-industry Alliances
② Expanding the Customer Base through Alliances with Companies in Different Industries will Contribute to Further Growth <Status of Major Alliances> Securities business Banking business Insurance business (Neo-bank) (Smartphone (Insurance products) securities, etc.) (Smartphone (Auto insurance) secu
Slide 55: Progress in the Neo-securities initiative
(2) Steady progress in the advancement of the Neo-securities initiative ① Implementation of initiatives to make fees free in stages ② Current initiatives to actualize the Neo- securities Initiatives Neo-securities initiative ＝ Planning the waiver of online trading commissions and partial costs that
Slide 56: Expanding Free Transaction Fees at SBI SECURITIES
① Step-by-step implementation of No-fees charged initiatives Expanding the Scope of Free Transaction Fees at SBI SECURITIES, as an Initiative to Actualize the Neo- securities Initiative • From September 28, significantly reducing the conditions that apply to free transaction fees for large margin tr
Slide 57: Realization of Neo-securities Initiative in Three Stages
① Step-by-step implementation of No-fees charged initiatives Realization of the Neo-securities Initiative, in Three Stages • In order to achieve the third step, SBI SECURITIES is endeavoring to reduce the contribution of commissions to operating income to become less than 5% • Will implement the ini
Slide 58: Current Initiatives to Actualize Neo-securities Initiative
② Current Initiatives to Actualize the Neo-securities Initiative and Timeline ② Current Initiatives to Actualize the Neo-securities Initiative Establish a business structure that is less dependent on online domestic stock brokerage commissions (i) Further expand the corporate business by focusing on
Slide 59: SBI SECURITIES' Operating Revenue Composition
SBI SECURITIES’ Operating Revenue Composition -Advanced the diversification of revenue sources, to achieve a business foundation that is less affected by the equity market Proportion of commissions decreased from 71% in FY2003 to 29% currently Online brokerage commissions for domestic stocks account
Slide 60: Enhancing the Corporate Business; IPO Underwriting Ranking
(i) Further expanding the Corporate Business Enhancing the Corporate Business to Further Strengthen the Comprehensive Capacity of the Securities Business, by Focusing on the Equity and Bond Underwriting Businesses for Both Primary and Secondary Market Offerings -IPO underwriting participation rate r
Slide 61: Further Strengthening M&A Advisory Division
(i) Further expanding the Corporate Business Further Strengthening M&A Advisory Division M&A advisory cases M&A Advisory Dept. * Number of cases of 1H FY2018 as 1 [SBI SECURITIES] M&A Solutions Dept. 3.0 Provides advice on acquisitions, sales, the number of advisory management integration, MBO indus
Slide 62: Brokerage Services Expanded to Customer Financial Institutions
(ii) Expand brokerage services to customer financial institutions, through the Financial Institutional Sales Dept. Through SBI SECURITIES’ Financial Institutional Sales Dept., Expanded Brokerage Services to Its Customer Financial Institutions, which Total 407 Companies*1 SBI SECURITIES is strengthen
Slide 63: Investment Trust Balance Rapidly Increased
(iii) Expand the non-flow business, such as investment trust fees At SBI SECURITIES, the Balance of Investment Trusts have Rapidly Increased Month-end accumulated investment Investment trust balance (JPY (JPY trust set amount (upper limit) million) billion) 25,420 3,000 25,000 2,814 Total set amount
Slide 64: Robo-advisor Customer Assets Steadily Increase
(iii) Will grow the nonflow business, such as investment trust fees SBI SECURITIES’ Robo-advisor Asset Formation Service’s Customer Assets Steadily Increases [SBI SECURITIES] [Investee company of the Fintech Fund] Provides “WealthNavi for SBI SECURITIES,” a customized WealthNavi robo-advisor service
Slide 65: SBI SECURITIES' Trading Revenue Trend
(iv) Increase trading income SBI SECURITIES’ Trading Revenue Trend Trading revenue, including FX trading revenue, significantly increased, leading to an increased contribution to earnings (JPY million) 30,000 FX-related revenue Revenue related to crypto-asset 25,000 Others (Revenue related to foreig
Slide 66: SBI VC Trade Measures to Expand Crypto-asset Business
65 *Basis date Business, in Response to the Revisions in the Payment Services Act FY2020 Crypto-asset fund SBI VC Trade is Implementing Various Measures to Expand Its operations 2020 Nov. Lending services 2020 Co-marketing initiated Oct. Connecting to the Sept. 2020 OTC market maker B C 2 2 2020 Aug
Slide 67: Co-managed Shops with Regional Financial Institutions Growth
(v) Increase in commission income except for online transaction Co-managed Shops with Regional Financial Institutions have Rapidly Increased Their Number of Accounts and Customers’ Deposit Assets Established a total of 16 shops with 12 banks to operate joint store operations (as of Oct.27, 2020) (2n
Slide 68: Co-managed Shops: Customer Attributes and Deposit Assets
(v) Increased commission income other than online trading of domestic stocks At the Co-managed Shops with Regional Financial Institutions, Account Opening of Corporations and Wealthy Individuals, Including Company Owners Continues to Progress Breakdown of customer attributes, and customer deposit as
Slide 69: SBI SECURITIES' IFA Business Progress
(v) Increased commission income other than online trading of domestic stocks SBI SECURITIES' IFA Business is Steadily Progress SBI SECURITIES' IFA Business SBI SECURITIES' IFA Business' AUM Revenues Trend * Revenue from IFA Business for 1H FY2019 as 1 Rakuten Revenue grew 2.2 (JPY trillion) Securiti
Slide 70: SBI SECURITIES' Foreign Stock Trading Volume Surges
(v) Increased commission income other than online trading of domestic stocks SBI SECURITIES' Foreign Stock Trading Volume Surges SBI SECURITIES' foreign stock trading value and revenue trend 8.3 Foreign stock trading value Revenue * foreign stock trading value for 1Q FY2017 as 1 5.6 1Q 2Q 3Q 4Q 1Q 2
Slide 71: Target Areas for M&A Activities
(vi) SBI Group's foreseeable thoughts regarding M&A activities Target Areas for Domestic and Overseas M&A Activities, in Order to Proactively Advance the Actualization of the Neo-securities Initiatives Businesses that decrease dependence on brokerage commissions* *Deals that will lead to an increase
Slide 72: SBI Sumishin Net Bank Neo-bank initiatives
(3) SBI Sumishin Net Bank strongly promotes the “Neo-bank initiatives” ahead of its competitors [Unauthorized reproduction prohibited] 71
Slide 73: SBI Sumishin Net Bank Partnership with Yamada Holdings
SBI Sumishin Net Bank Agrees to a Partnership with Yamada Holdings as Part of the “Neo-bank Initiatives” Large customer base with over Provision of various banking 12,000 physical stores in Japan services through the "Neo-bank and abroad and approximately 60 initiatives” million members Discussion i
Slide 74: Advanced Security Services through NetMove Corp.
Providing Advanced Security Services through the Wholly Owned Subsidiary, NetMove Corp. NetMove Corp. (Becoming a wholly owned subsidiary of SBI Sumishin Net Bank in April 2019) NetMove possesses advanced system design and development capabilities for settlement and security services, etc. The s
Slide 75: Regional revitalization through regional financial institutions
3. The SBI Group's comprehensive strengths are fully demonstrated in the regional revitalization efforts, through the revitalization of regional financial institutions (1) The SBI Group's collaborations with regional financial institutions, underway for the past three years, has further expanded in
Slide 76: Collaborations with regional financial institutions
(1) The SBI Group's collaborations with regional financial institutions, underway for the past three years, has further expanded in its scale and methods ① The partnerships that the SBI Group has engaged in with regional financial institutions ② Various collaboration measures with regional financial
Slide 77: Alliances with Regional Financial Institutions (i)
① Alliances that the SBI Group Companies have Advanced with Regional Financial Institutions (i) SBI group companies Content of the alliance Announced alliances with a total of 42 regional financial institutions in the financial SBI SECURITIES product intermediary business Co-managing shop operation
Slide 78: Alliances with Regional Financial Institutions (ii)
① Alliances that the SBI Group Companies have Advanced with Regional Financial Institutions (ii) SBI group companies Content of the alliance The tablet app “Wealth Advisors” provided by Morningstar Japan has been adopted by 142 regional financial institutions 38 institutions, including regional fina
Slide 79: Collaboration measures deepened with new partners
② Various collaboration measures with regional financial institutions will be further deepened with the entrance of new partners (i) SBI MONEY PLAZA, which operates co-managed shops with regional banks, will strengthen its proposal and sales capabilities through the capital participation of the SMBC
Slide 80: SMBC Group Capital Participation in SBI MONEY PLAZA
(i) SBI MONEY PLAZA, which Operates Co-managed Shops with Regional Banks, will Strengthen its Proposal and Sales Capabilities through the Capital Participation of the SMBC Group • As part of the strategic capital and business alliance concluded with Sumitomo Mitsui Financial Group (SMBC Group) in Ap
Slide 81: SBI Life New Joint Credit System
(ii) SBI Life Insurance Adopts a New Joint Credit System to Increase Sales of Group Credit Life Insurance [SBI Life Insurance] SBI Life's total number of group credit As a new initiative, formed a joint credit life insurance has increased 20-fold system with the General Incorporated in three years A
Slide 82: Alliance with Keystone Partners
(iii) Formed a Capital and Business Alliance with Keystone Partners, which Boasts Strengths in Supporting Corporate Revitalization and Growth -Strengthening support for SMEs in cooperation with regional financial institutions- Keystone Partners 【 Images of Business Collaboration 】 • Extensive experi
Slide 83: SBI Regional Bank Holdings
(2) SBI Regional Bank Holdings is committed to solving the challenges of its strategic capital and business partners and their customers ① Shimane Bank Achieves Significant Improvement of Result in 1H FY2020 ② Various initiatives with each partner bank ③ Strategic Business Alliance with TOWA Bank [U
Slide 84: Shares transferred into SBI Regional Bank Holdings
Shares of Regional Financial Institutions that SBI has Entered into Capital and Business Alliances has already been Transferred into the New Holding Company (SBI Regional Bank Holdings) -Up to 10 banks may be forming a capital and business alliance, in consideration of the available resources of the
Slide 85: Supporting Qualitative Transformation of Regional Banks
SBI Regional Bank Holdings Supports the “Qualitative Transformation” of Its Investee Regional Financial Institutions Operation of the co-managed shops Common issues for with SBI MONEY PLAZA regional financial institutions Sophistication of Asset management securities operations support SBI Regional
Slide 86: Shimane Bank Improves 1H FY2020 Result
① Shimane Bank Achieves Significant Improvement of Result in 1H FY2020 Shimane Bank Achieves Significant Improvement of Result in 1H FY2020 -Core operating income recorded the first profit since 1H FY2016- Comparison of core operating Income (1H) Comparison of ordinary income (1H) (JPY million) (JPY
Slide 87: Initiatives with Subsequent Partner Banks
② Various initiatives with each partner bank Steady Progress on Initiatives with Subsequent Partner Banks Fukushima Bank A business alliance agreement was concluded with Raysum Co., Ltd., which provides real estate asset management services, through the SBI Group, in order to meet the needs of aff
Slide 88: Co-managed Shops Increased Accounts and Deposit Assets
② Various initiatives with each partner bank Each Regional Financial Institution Co-managed Shop has Increased Their Number of Accounts and Customer Deposit Assets Change in customer deposit assets and number of accounts Shimizu Bank CHIKUHO BANK (Launched in Oct. 2017) (Launched in June 2018) 18 16
Slide 89: AUM from Regional Financial Institutions Exceeded JPY 1.5tn
② Various initiatives with each partner bank AUM from Several Regional Financial Institutions, Including 4 Banks as Capital and Business Partners of SBI Holdings, Exceeded JPY 1.5tn SBI Bond Investment Management (co-founded with PIMCO, one of the world’s largest bond investors) has consistently p
Slide 90: Strategic Business Alliance with TOWA Bank
③ Strategic Business Alliance with TOWA Bank New Agreement with TOWA Bank to Strengthen Strategic Business Alliance <Main agreements> Establishment of a joint fund to support local businesses Strengthen the financial intermediation function by providing capital funds and capital loans through the jo
Slide 91: Regional Revitalization Partners
(3) Regional Revitalization Partners, a joint initiative with several partners who share a common aspiration toward regional revitalization -The SBI Group’s new approach to realizing regional revitalization- • To date, the SBI Group has advanced various initiatives to help solve issues related to re
Slide 92: Revitalizing Four Economic Entities
In Order to Further Advance Regional Revitalization, It will be Essential to Revitalize Four Economic Entities: Regional Financial Institutions, Local Residents, Local Industries, and Local Governments <Local economic activities> Increased consumption Local Job creation Local Industry residents (SME
Slide 93: Establishing Regional Revitalization Partners Co., Ltd
Established Regional Revitalization Partners Co., Ltd as a Joint Initiative with Multiple Partners Who Share a Common Aspiration Toward Regional Revitalization [SBI Holdings] [Yamaguchi Financial Group] Regional [Shinsei Bank] Revitalization Partners Accepting one director from each investment partn
Slide 94: Scheme of the Function Providing Company
The Scheme of the Function Providing Company Raise capital by forming a fund (silent partnership, etc.) in which the function provider acts as a GP for each area or theme Core partners who make major investments into the fund will have the right to invest in the function provider, as well as to
Slide 95: Business Areas for Revitalization Partners to Contribute
Business Areas that the Regional Revitalization Partners and Function Supplying Companies Could Contribute In Business areas that the Regional Challenges facing the Revitalization Partners and other Main issues with localities regional financial institutions function supplying companies could contri
Slide 96: Business fields to focus on for new innovations
III. Business fields to focus on for new innovations toward future business developments 1. Entering into 2 new business fields that are related to existing businesses 2. Advance the adoption of blockchain and distributed ledger technology (DLT), which is expected to become the next generation core
Slide 97: Entering new business fields related to existing businesses
1. Entering into 2 new business fields that are related to existing businesses (1) Proactively advancing efforts in a field that is expected to create synergies with existing businesses, with a real estate development company (2) Entering into the medical informatics field, the importance of which w
Slide 98: Real estate development company synergies
(1) Proactively advancing efforts in a field that is expected to create synergies with existing businesses, with a real estate development company [Unauthorized reproduction prohibited] 97
Slide 99: SBI SECURITIES Begins Real Estate Brokerage Business
SBI SECURITIES Begins Real Estate Brokerage Business to Strengthen its Corporate Business on Oct. 19th The wealthy class [Centered on corporate business] Needs for real estate as a tax-saving measure, etc. [SBI SECURITIES] Strengthen the corporate business to be on par with the retail business NEW E
Slide 100: Acquiring Partial Stake in Ascot Corp
SBI Holdings has Decided to Acquire a Partial Stake in Ascot Corp, a Subsidiary of the World's Leading General Financial Group, Ping An Insurance Company of China, Ltd. Ascot Corp. (TSE JASDAQ listed company) Primarily involved in real estate development business, with a focus on planning and deve
Slide 101: Entering the medical informatics field
(2) Entering into the medical informatics field, the importance of which was recognized during the COVID-19 crisis [Unauthorized reproduction prohibited] 100
Slide 102: Medical Informatics
Entering into the Medical Informatics Field, the Importance of which was Recognized During the COVID-19 Crisis -In an endeavor to solve the inaccurate medical statistical data problem that was manifested during the spread of COVID-19, initiating an entrance into the medical information field- Medica
Slide 103: "Health Account" Business Joint Venture
Promote “Health Account” Business as a Joint Venture with Japan Medical Business Corporation Japan Medical Business Corporation Share:50% 50% Joint venture Medical Expenses Technologies Co., Ltd. (“MEX”) Deferred medical expense payment business 100% Medical Finance Technologies Co., Ltd. (“MFT”) “H
Slide 104: "Health Account" business concept
The “Health Account” Business is an Extremely Important Initiative for Maintaining the Health of the People, and for Regional Financial Institutions to Strengthen Their Ties with the People “Health Account” business concept Regional Financial Institutions Expenses related to one's Provide the minimu
Slide 105: New Service "Health Account"
New Service “Health Account” to Prepare for Future Medical and Nursing Expenses Image of “Health Account” service: For users in hospitals • Eliminates waiting time for accounting • Cashless payments in ①Visit the hospitals hospital Will be realized Users Medical institution Medical and ②Medical expe
Slide 106: Adopting blockchain and DLT
2. Advance the adoption of blockchain and distributed ledger technology (DLT), which is expected to become the next generation core technology for the financial sector (1) Utilizing blockchain and distributed ledger technology (DLT) in the fields of remittance and payments, and in the issuance and d
Slide 107: Utilizing DLT in remittance, payments and security tokens
(1) Utilizing blockchain and distributed ledger technology (DLT) in the fields of remittance and payments, and in the issuance and distribution of security tokens ① Expanding the utilization of digital assets in the remittance and payment sector ② To create the new next generation financial products
Slide 108: Digital assets in remittance and payment sector
① Expanding the utilization of digital assets in the remittance and payment sector (i) Inexpensive payment service connections utilizing Money Tap (ii) Digital token issuance and distribution support [Unauthorized reproduction prohibited] 107
Slide 109: Ripple Investment Accelerates Money Tap Introduction
(i) Inexpensive payment service connections utilizing Money Tap Acceptance of Investment from Ripple Accelerates the Introduction of the Service to Regional Financial Institutions, a well as the Development of New Services 38 Banks Invest The Ashikaga Bank, The Awa Bank, EHIME BANK, Kita-Nippon Bank
Slide 110: Money Tap Collaborating with Financial Institutions
(i) Inexpensive payment service connections utilizing Money Tap Money Tap Collaborating with Financial Institutions for a Win-win Service Offering P2P (remittance between individuals) P2B Individual user 38 financial institutions are participating as shareholders in the 3 banks connected as of Apr.
Slide 111: Connections with Prepaid Charging Service Providers
(i) Inexpensive payment service connections utilizing Money Tap Status of Connections with Prepaid Charging Service Providers Utilizing Money Tap -Charging is possible without utilizing existing infrastructure, such as CAFIS, leading to an easier, lower charging cost- Advantage (for banks) • Advanta
Slide 112: Further Expansion of Services Based on Money Tap
(i) Inexpensive payment service connections utilizing Money Tap Further Expansion of Services Based on Money Tap Freely adapt of Money Tap’s infrastructure to expand business with “low cost, low friction and low stress” Money Tap Co., Ltd. P2P remittance QR code payment New app & service ① Prepaid c
Slide 113: Supporting Digital Currencies in Fukuoka Prefecture
(ii) Digital token issuance and distribution support The SBI Group Supports the Issuance of Multiple Digital Currencies in Fukuoka Prefecture in Collaboration with, Chikuho Bank, Kyushu Electric Power, and Local Companies, etc. [Chikuho Bank] [Kyushu Electric Power] Example ①: “TOKOWAKA Example ②: “
Slide 114: PoC Testing of Payment Coin "S coin"
(ii) Digital token issuance and distribution support Completed PoC testing of the payment coin "S coin," issued on the S coin platform established utilizing Cord The S coin platform, built using Corda, can <App UI> design and issue unique digital currencies according to the application. In this de
Slide 115: Security token issuance and distribution markets
② To create the new next generation financial products, established the security token issuance and distribution markets [Unauthorized reproduction prohibited] 114
Slide 116: Crypto-asset Derivatives and STOs under Revised Law
Crypto-asset Derivatives and STOs are Covered Under the Financial Instruments and Exchange Act that became Effective in May 2020 Problems with ICOs • Owing to the global explosion of virtual currencies from 2017 to 2018, the number of fraudulent ICO projects have rocketed, with the purpose and means
Slide 117: Self-regulatory Organization for STOs
Established a Self-regulatory Organization to Promote the Sound Development of the Industry The Japan STO Association was established in October 2019 to formulate self-regulation for Security Token Offerings (STO), which is a method of raising funds using electronic means, and has already been certi
Slide 118: Japan's First Security Token Business to Launch
Owing to the amended Financial Instruments and Exchange Law, Effective as of May 1, 2020, Japan’s First Security Token Business is Scheduled to be Launched - The issuance of security tokens in full compliance with the Financial Instruments and Exchange Act as securities that appear on the tokens - C
Slide 119: Joint Fund with Sygnum Bank Group
Planning the Establishment of a Joint Fund with Switzerland's Sygnum Bank Group, the World's First Digital Asset Bank The Sygnum Bank is the world's first digital asset bank established in 2019 and is licensed by the Swiss financial authorities, and also operates as a licensed asset management compa
Slide 120: Global Ecosystem for Security Token Market (i)
Establishing a Global Ecosystem to Develop the Security Token Market at Home and Abroad (i) In order to develop the security token market, it is essential to enhance the related ecosystem, such as the secondary market for buying and selling between token holders, as well as the primary issuance ma
Slide 121: Global Ecosystem for Security Token Market (ii)
Establishing a Global Ecosystem to Develop the Security Token Market at Home and Abroad (ii) • Boerse Stuttgart Group operates Germany's second largest stock • Successfully completed more exchange than 10 STOs to date, and • The SBI Group invests in digital asset have solutions that apply on a relat
Slide 122: Next-generation global financial center concept
(2) Next-generation global financial center concept, which will be centered in Osaka and Kobe ① The need to develop and enhance existing infrastructure to attract a global financial center -Fostering PTS as an alternative market, and correcting mysteriously high fees- ② The timing of attracting glob
Slide 123: Need to develop infrastructure for a global financial center
① The need to develop and enhance existing infrastructure to attract a global financial center -Fostering PTS as an alternative market, and correcting mysteriously high fees- [Unauthorized reproduction prohibited] 122
Slide 124: Issues Revealed by TSE System Troubles
Issues Revealed by System Troubles that Occurred on the Tokyo Stock Exchange on October 1, 2020 Monopolar Market Share Regional Exchange concentration 87％ TSE PTS, dark pool Investors Lack of etc. 13％ Of which PTS complementation accounts for 8％ Japannext chi-x (PTS) (PTS) NYSE Nasdaq CBOE Functione
Slide 125: TSE Series of System Failures
TSE has had a Series of System Failures in the Past -This is the first time since 2005 and 2006 that the trading of all listed stocks have been suspended- TSE's past major system failures 2 listed stocks could not be spot Approximately 1700 listed stocks could 1997 Aug not be traded due to system sh
Slide 126: Service Improvement Stagnating Owing to TSE Monopoly
Service Improvement is Stagnating, Owing to the TSE Monopoly Incentives for service improvement on the TSE are weak, owing to the absence of the market principle Developing a PTS capable of competing with the TSE is essential, in order to realize fiduciary duties of providing best execution at t
Slide 127: Establishment of Japannext Securities
SBI Group Contributes to the Development of a Sound Securities Market Through the Establishment of Japannext Securities • Founded in 2006, Japannext Securities is currently the oldest and largest PTS operator in Japan. 33 companies participate in the market, including both domestic and foreign secur
Slide 128: Developing a PTS that Could Compete with TSE
To Develop a PTS that Could Compete with TSE The Existence of Multiple Competitive Service Providers is a Prerequisite for the Principle of Competition to Work, and there is an Urgent Need for the Development of PTSs in Japan, for the Sound Development of the Securities Market 【1】 Full abolition of
Slide 129: Promoting Inter-market Competition for New Trading Facilities
Promoting Inter-market Competition for the Entrance of New Trading Facilities Issues with the current system If trading on a PTS exceeds 20% of the share of an individual stock and 10% of the trading value of a public exchange (*), it must Regulation of market become a public exchange share ⇒For the
Slide 130: Adverse Effects of High Exchange Clearing Fees
Adverse Effects of High Exchange Clearing Fees Internet securities contributed to the expansion of the range of individual investor’s activities, driven by efforts to lower transaction fees and policies such as NISA (Nippon Individual Savings Account). Movement of As a result, the number and value o
Slide 131: Regulators Support Entry of Non-financial Companies
Regulators are Indicating a Support for the Entry of Non-financial Companies, Owing to Pressures on Existing Businesses and Deregulation Fair Trade Commission report on “antitrust law violations” concerning banking infrastructure and fintech connection denial The Fair Trade Commission has put togeth
Slide 132: JSCC Clearing Fees Unchanged
JSCC's (Japan Securities Depository Center) Clearing Fees Peaked in 2008 and Remains Unchanged, while the Transfer Fee has Not Changed since 2016 JSCC clearing commissions per underwriting amount • Volume discount April 2006 Currently is maximum -5% Ten thousandth of Ten thousandth of • Recent rev
Slide 133: Overseas Clearing Fees Volume Discounts
Unlike Japan, the Overseas Fee Table for Clearing Fees has a Large Volume Discount (Maximum 97%) (United States) NSCC (US) Fee table -97% (United Kingdom) LCH (UK) Fee table -97% Reference: a discussion paper in the securities industry [Unauthorized reproduction prohibited] 132
Slide 134: Fiscal structure of JSCC (i)
Fiscal structure of JSCC (i) JSCC Operating Revenues Grew at a CAGR of 3.03%, Operating Expenses Increased at an Average Rate of 4.66% Per Year, while Profit Margins Remained High (Recurring Profit Margin for FY2019 Was 30.65%) Reference: JSCC website https://www.jpx.co.jp/jscc/kaisya/zaimu.html [Un
Slide 135: Fiscal structure of JSCC (ii)
Fiscal structure of JSCC (ii) JSCC's Long-term Liabilities are Small, with JPY 50.1bn of Retained Earnings Added as of the End of March 31, 2020, with Cash and Deposits also having Increased to JPY 64.5bn Reference: JSCC website https://www.jpx.co.jp/jscc/kaisya/zaimu.html [Unauthorized reproduction
Slide 136: JASDEC's financial structure (i)
JASDEC's financial structure (i) JASDEC Operating Revenues Grew at a CAGR of 4.74%, while Operating Expenses Declined -7.15%. Labor cost and depreciation expenses are on a declining trend, but recurring profit margin remained remarkably high at 50.65% in FY2019 (JPY million) Operating revenue Operat
Slide 137: JASDEC's financial structure (ii)
JASDEC's financial structure (ii) JASDEC's Long-term Liabilities are Practically Nonexistent, and Owing to Its Strong Business Performance, Retained Earnings Increased to JPY 46.0Bn, and Cash and Deposit Balances also Increased to JPY 28.5Bn [Unauthorized reproduction prohibited] 136
Slide 138: Three Major Trends Domestically and Abroad
② Three Major Trends that have Arisen Domestically and Abroad Japan's Super City Bill was enacted on May 27, and there has been a Japan major move toward the realization of smart cities through deregulation and the introduction of advanced technology Reflecting the geopolitical situation in Asia
Slide 139: Concept of Attracting Next Generation Global Financial Center
③ Concept of Attracting the Next Generation Global Financial Center to Japan Although efforts have been made in Japan in the past 20 years to establish a global financial center centered in Tokyo, the problems of a unipolar society have become apparent with the recent COVID-19 crisis. With a view to
Slide 140: Reasons Osaka/Kobe is a Candidate Site
Reasons Why Osaka/Kobe is a Candidate Site for a Global Financial Center Historical Development of a Background Comprehensive Exchange Owing to the historical background as With the transfer of commodity futures Japan's commercial and financial center from the Tokyo Commodity Exchange to as the “Kit
Slide 141: Japanese Personal Financial Assets in Deposits and Savings
Japanese Personal Financial Assets that Rest as Deposits and Savings are the Greatest Attraction for Domestic and Foreign Money Managers Personal individual financial assets in Japan JPY 1,883 trillion(As of end of June 2020) Comparsion of the ratio of household assets between Japan, United States,
Slide 142: Suggestions for the Global Financial Center Concept
Suggestions for the Global Financial Center Concept • Establishment of a Strategic Special Zone • Relaxation of financial regulations in the Strategic Special Zone and reduction of various tax rates, such as income tax and capital gains tax, to internationally competitive levels • Designing tax ince
Slide 143: How the SBI Group Can Support the Concept
④ Examples of how the SBI Group can support the realization of this concept i. Providing advanced technology in the financial business Provision of the “S Coin Platform,” an issuance & distribution platform for digital tokens, and “Money Tap,” a settlement platform, that utilizes advanced technologi
Slide 144: Cooperation with R3 and Ripple
i. The SBI Group Cooperates Closely with U.S R3 and U.S. Ripple, which could Become the De Facto Standard of the Next Generation, Through Investment, Establishment of JV, etc., with Both Companies Several projects have been developed by participating companies from Investment various industries util
Slide 145: Attracting Fintech Venture Companies through SBI Investment
ii. Attracting Fintech Venture Companies through SBI Investment Possesses an abundant investment track record in growth sectors such as in the fintech field ※Primary investee companies of major funds ＝IPO’d ＝M＆A’d Blockchain / Crypto-asset Crowdfunding ／M＆A Marketing／Media Environmental Energy Robot
Slide 146: Global Comprehensive Exchange via Osaka Dojima Commodity Exchange
iii. Formation of a Global Comprehensive Exchange through the Osaka Dojima Commodity Exchange Following the Dojima Rice Exchange (world’s first futures exchange), assembling a general trading group centered on the Osaka Dojima Commodity Exchange (Japan’s only rice futures market), to be operated a
Slide 147: Creating Next-generation Financial Products and Handling Market
iv. Creating Financial Products of the Next-generation and Establishing a Handling Market • Creation of a market for the circulation and issuance of security tokens, a financial product of the next generation • Establishment of a new Proprietary Trading System (PTS) to handle security tokens in addi
Slide 148: Reference materials for each business
[Reference materials for each business] [Unauthorized reproduction prohibited] 147
Slide 149: SBI SECURITIES' Interest Credit Balance and Financial Revenue
1. Securities-related business: SBI SECURITIES’ Interest Credit Balance and Financial Revenue / Net Financial Revenue Open Interest Credit Balance (EOM) Financial Revenue / (JPY 100 million) 10,000 (JPY million) Net Financial Revenue 9,392 9,146 20,000 9,000 8,538 18,070 +0.4% 18,146 7,805 18,000 8,
Slide 150: SBI SECURITIES Overwhelming Customer Base
1. Securities-related business: SBI SECURITIES Attains an Overwhelming Customer Base [Number of Accounts and Amount of Customer Asset] Customer Accounts of 5 Major Customers’ Deposit Assets of Online Securities Companies 5 Major Online Securities Companies (As of end of Mar. 2017- as of end of Sept.
Slide 151: SBI Group Accounts and Deposits in OTC FX Industry
1. Securities-related business: The SBI Group’s (SBI SECURITIES, SBI FXTRADE and SBI Sumishin Net Bank)Total Number of Accounts and Customer Deposit Assets have Overwhelmingly Surpassed that of Its Competitors in the OTC FX Industry Changes in the number of accounts among Customers’ Deposit Assets R
Slide 152: Trading Business Results 1H FY2020 (IFRS)
1. Securities-related business: Trading Business Results 1H FY2020 (IFRS) FX business *Simple aggregate of the profit before income tax expense of SBI Liquidity Market and SBI FXTRADE (JPY million) 1H FY2019 1H FY2020 YoY % (Apr. 2019 – Sept. 2019) (Apr. 2020 – Sept. 2020) change Profit before incom
Slide 153: Exit Results and IPO Schedule of Fintech Fund Investees
Exit Results and Planned IPO Schedule of Investee Companies of the Fintech Fund (Established in 2015) and SBI AI&Blockchain Fund (Established in 2018) -Both funds moved into the monetization phase, and preparations are underway for successor funds- <Investment results> Investment of approx. JPY 78.0
Slide 154: Assets Under Management of the SBI Group
2. Asset Management Business Assets Under Management of the SBI Group (As of the end of September 2020) (*1) (*2) Private equity, etc. JPY 500.6bn (Excluding JPY 128.4bn of both cash and commitment amount to be paid in) Breakdown of operating investment Breakdown of operating investment Amount secur
Slide 155: SBI Biotech's Drug Discovery Pipeline
3. Biotechnology-related Business SBI Biotech’s Drug Discovery Pipeline Licensing Adaptation disease Progress partner (timing) An analysis of the phase Ib trial yielded Systemic lupus erythematosus, favorable results, including a therapeutic Cutaneous lupus effect. Based on these results, phase II P
Slide 156: SBI Group's Customer Base
The SBI Group’s Customer Base, which was Expanded through the Thorough Pursuit of the Customer-centric Principle and Group Synergies Breakdown of the Customer Base (Thousand) (As of the end of Sept. 2020)*1,2 (Thousand) 28,876 SBI SECURITIES (No. of accounts) 5,959 SBI NeoMobile Securities 30,000 26
Slide 157: Number of Companies and Consolidated Employees
Number of Companies and Consolidated Employees of the SBI Group Number of Group companies March 2020 September 2020 Consolidated subsidiaries (companies) 246 258 Consolidated partnerships (partnerships) 22 29 Total consolidated subsidiaries(companies) 268 287 Equity method companies (companies) 34 3
Slide 158: https://www.sbigroup.co.jp
https://www.sbigroup.co.jp [Unauthorized reproduction prohibited] 157
Sbi Holdings Inc Ord — H1 FY2020 Earnings Presentation on 6ix