Tokai Tokyo Financial Holdings, Inc. · TSE:8616
Tokai Tokyo Financial — FY2023 Earnings Presentation
45 slides from Tokai Tokyo Financial's earnings presentation, May 25, 2023
Slide 1: IR Presentation FYE Mar. 2023
IR Presentation FYE Mar. 2023 Ichiro Goda President and Representative Director May 25, 2023
Slide 2: Table of Contents
Table of Contents Ⅰ. Executive Summary Ⅱ. FYE March 2023 (Performance Review) Ⅲ. FYE March 2023 (Key Analysis) Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Ⅴ. Human Resources Development – Our Approach Ⅵ. Sustainability - Our Approach Ⅶ. The Current Status of the Group’s Capit
Slide 3: Executive Summary
Ⅰ. Executive Summary Financial Overview & Operating Result ➢ Decreased foreign equity broking, reorganized approach for structured bond sales, and expanded investment as part of future strategy resulted in tough results. (P.4) ➢ Our endeavors for revenue source diversification started making some po
Slide 4: FYE March 2023 (Performance Review)
Ⅱ. FYE March 2023 (Performance Review)
Slide 5: Consolidated Results
Ⅱ. FYE March 2023 (Performance Review) (Consolidated Basis) ➢ Decreased foreign equity broking, reorganized approach for structured bond sales, and expanded investment as per future strategy lowered operating revenue. ➢ Front-end investment in digital businesses increased cost burden. FYE Mar. FYE M
Slide 6: Quarterly Consolidated Results
Ⅱ. FYE March 2023 (Performance Review) (Quarterly Consolidated Results) ➢ Tokai Tokyo Securities experienced declined operating revenue from 3Q due to decreased transaction flow while reviewing the sales approach of structured bond sales. Stepped-up sales of foreign bonds and investment trusts and p
Slide 7: Profit analysis of each member of the Group
Ⅱ. FYE March 2023 (Performance Review) (Consolidated) Profit analysis of each member of the Group ➢ All the securities brokerage members of the Group including Tokai Tokyo Securities and joint venture operations suffered worsened profits. ➢ TTGI and insurance agency operations supported profits that
Slide 8: Consolidated Commission
Ⅱ. FYE March 2023 (Performance Review) (Consolidated) Commission ➢ Total commission received (left table) decreased owing to declined handling volume of stock brokerage and investment trusts. ➢ Redesigning the composition of revenue sources proved effective to insulate earnings from market fluctuati
Slide 9: Consolidated Trading Income
Ⅱ. FYE March 2023 (Performance Review) (Consolidated) Trading Income ➢ Growth in foreign bond sales, Japanese bonds trading, and derivative transactions altogether was more than offset by slumping foreign equities and structured bonds. Thus, the total net trading income ended up with an 8% decrease.
Slide 10: Consolidated SG&A Expenses
Ⅱ. FYE March 2023 (Performance Review) (Consolidated) SG&A Expenses ➢ The merger between ACE Securities and Tokai Tokyo Securities has now started showing its effect. The decrease in both “Personnel Expenses” and “Real Estate Expenses” attest to that. ➢ Amortization of added software pushed up “Depr
Slide 11: SG&A Expenses (Fixed Cost, Variable Cost)
Ⅱ. FYE March 2023 (Performance Review) (Consolidated) SG&A Expenses (Fixed Cost ・Variable Cost) ➢ Fixed Expenses: Both “Personnel Expenses” and “Real Estate Expenses” decreased owing mainly to the merger between ACE Securities and Tokai Tokyo Securities. ➢ Variable Expenses: A decrease in sales of b
Slide 12: FYE March 2023 (Key Analysis)
Ⅲ. FYE March 2023 (Key Analysis)
Slide 13: Key Analysis topics
Ⅲ. FYE March 2023 (Key Analysis) ➢ Revenue generation of Tokai Tokyo Securities by its respective Companies ➢ Asset under Custody ➢ The issue - Structured Bond now and hereafter 12
Slide 14: Revenue generation of Tokai Tokyo Securities by company
Ⅲ. FYE March 2023 (Key Analysis) Revenue generation of Tokai Tokyo Securities by its respective companies ➢ Retail sales division and Global-Market Company saw a drop in its revenue due to the slumping sales of foreign equity and virtually suspended sales of structured bonds while its sales activity
Slide 15: Revenue generation by company: commentary
Ⅲ. FYE March 2023 (Key Analysis) Revenue generation of Tokai Tokyo Securities by its respective companies Depressed revenue flow from the sales of foreign equity and Although overall figure fell from its level of last year, it structured bond and unfavorable market environment hurt the keeps steady
Slide 16: Trend of Asset under Custody
Ⅲ. FYE March 2023 (Key Analysis) Trend of Asset under Custody ➢Total balance of Assets under Custody grew ￥365 billion from the end of the preceding fiscal year. Change from the previous Mar. 2022 Component Mar. 2023 Component (Billions of yen) Fiscal Year Ratio Ratio end Stocks 3,238 56% 3,711 58%
Slide 17: Fund and Asset Inflows
Ⅲ. FYE March 2023 (Key Analysis) Fund・Asset Inflows ➢The Group’s total acquisition of funds and assets during the FYE March 2023 decreased to ¥563 billion. We however, maintained relatively high-level inflows of funds and assets. ➢At Tokai Tokyo Securities, the wealth management company and IFA weal
Slide 18: Group Asset under Custody (Wealth Segment Division)
Ⅲ. FYE March 2023 (Key Analysis) The Group’s overall trend of Asset under Custody (Wealth Segment Division) ➢Orque d’or Brand operation going well. Wealth management company accomplished ¥1 trillion thresholds of Assets under Custody for the first time in the group’s history. 17
Slide 19: Structured Bond now and the problem-solving hereafter
Ⅲ. FYE March 2023 (Key Analysis) Structured Bond now and the problem-solving hereafter ➢ Tokai Tokyo Securities significantly rigidified the investor suitability standard applicable to the sales of structured bonds at the beginning of the 2nd half of FYE Mar. 2023, and joint venture partnership firm
Slide 20: Topics of the 2nd Half
Ⅲ. FYE March 2023 (Key Analysis) Topics of the 2nd Half of the FYE March 2023 TTFH ➢ Established Fujita TT Impact 1 Investment Limited Partnership. CHEER Securities ➢ Started offering services that enable customers to invest in securities via applications provided by Nishi- Nippon City Bank. ➢ Initi
Slide 21: Medium-Term Management Plan – Numerical Targets and the Progress
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress
Slide 22: Medium-Term Management Plan
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Five-year plan April 2022 thru March 2027 Vision of the plan Corporate group with admiration and respect Principle of the plan Destination of the plan “Social Value & Justice” “New World” comes first The basic policy of strategy for
Slide 23: Beyond Our Limits
Ⅳ.Medium-Term Management Plan – Numerical Targets and the Progress Leap forward Beyond Our Limits Deepen expertise in existing businesses Stable Earnings “Powerful Partners” Earnings Power Productivity Increase ◆ Power companies Structure Enhancement ◆ Trading firms Affiliated Tokai Tokyo FH ◆ Telec
Slide 24: Outline of the Plan
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress ~Outline of the Plan “Powerful Partners” Corporate Value Stakeholder Benefits Enhancement The caliber and capability enhancement as a a financial service provider New Bonanza Growth Potential 23
Slide 25: Progress against numerical targets: caliber enhancement
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Progress as of the end of Mar. 2023 FYE Mar.2027 FYE Mar.2022 Target Values 7.8% The decrease in Operating ROE* 1.1％ Revenue caused -6.7PP FYE Mar.2023 12.0％ increase compared with the Group KGI ROE of FYE Mar. 2022 . Assets 8.6 tri
Slide 26: Key measures to reach the New World
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Key measures to reach the New World FYE Mar.2027 Target Value FYE Mar.2022 Ordinary Profit -1.6 billion yen -1.2 billion yen compared with the FYE Mar. 2022 result reflects the cost Ordinary profit 6.0~10.0 billion yen burden of pro
Slide 27: Perfection in fulfilling all the mundane basics
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress “Social Value & Justice” KPI FYE Mar.2027 Target Values FYE Mar.2022 2,675t CO2 net Reduced by half Switching to high-efficiency lighting and air conditioning, expanding Compared to For a better emissions renewable energy use, and r
Slide 28: The caliber enlargement as a financial service provider
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress The caliber enlargement as a financial service provider The caliber enlargement as a financial service provider ＝Enhancement of existing line of business Focuses ➢ We drive forward segmentation strategy, particularly, in the retail
Slide 29: Measures taken by Wealth Management Company
Ⅳ. Medium-Term Management Plan – Quantitative Goals and the Progress Measures taken by respective companies (Wealth Management Company) Service Quality Improvement Ecosystem Sales Approach based on Develop Business portfolio mix advisory Addressing Super Wealth (Suggestion for the hedge Segment fund
Slide 30: Measures taken by Retail Company
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measured taken by respective companies (Retail Company) Sales based on Portfolio Mix Collective Power Advisory Database Marketing Enhancement A suggestion about Foreign Currency Denominated Assets High Performer Moneyvision Analysis
Slide 31: Measures taken by Multi-Channel Company
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measured taken by respective companies (Multi-Channel Company) Product Increase assets denominated in foreign currencies and Foreign bond transaction Focus on onsite-sales Internet-based margin volume activity toward transaction emp
Slide 32: Measures taken by IFA Company
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measured taken by respective companies (IFA Company) Grow sales of foreign bonds and investment Lending against trusts originated in collateralized Securities overseas IFA Recruit and add new IFAs to our roster Efficient operation b
Slide 33: Measures taken by Global-Market Company
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measured taken by respective companies (Global-Market Company) Corporate Sales Solution Business Expanding Equity Solutions Stock Lending Discretionary Investment Management Expand Assets ・Investment Advisory Denominated in Foreign
Slide 34: Measures taken by Investment Banking Company
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measured taken by respective companies (Investment Banking Company) Trilateral Initiatives by Corporate Sales Employee Shareholding Open Innovation Association Investment Banking Coordinated Actions Start-up Business with Nagoya Sto
Slide 35: Revenue estimate by Tokai Tokyo Securities
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Caliber and capability enhancement as a financial service provider (Revenue estimate by Tokai Tokyo Securities) (Billions of yen) FYE Mar. FYE Mar. 2023 2024 YoY Apr.–Mar. Apr.–Mar. Rate of Change in (Actual) (Target) Change Amount
Slide 36: Measures taken by JV Securities
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Measures taken by JV Securities Portfolio Investment Sales Activity Streamline Operation CSC, Sales Office Network Wealth Segment Reconfiguration JV Securities Business Expand Asset Denominated in Corporate Sales Foreign Currencies
Slide 37: Key measures to reach the New World (Digital Strategy)
Ⅳ. Medium-Term Management Plan – Quantitative Goals and the Progress Key measures to reach the New World (Digital Strategy) Tokai Tokyo Digital New World Tokai Tokyo Digital New World Tokai Tokyo Digital World Powerful Partners Providing a digital service Telecom companies Trading firms Gain more Mo
Slide 38: CHEER Securities and TTDP
Ⅳ. Medium-Term Management Plan – Numerical Targets and the Progress Key measures to reach the New World (Digital Strategy） CHEER Securities TTDP Service competence development and expansion Digital coupons issued by a local municipality ➢ Started operation by dealing foreign equity only Kosai City,
Slide 39: Alliance with Powerful Partners
Ⅳ. Medium-Term Management Plan – Quantitative Goals and the Progress Alliance with Powerful Partners Real Estate Lease New NISA Agent ・Buy & Sell NCB Development Telecommunication Asset Management Companies Financial CHEER DX Bank Real Estate Institution Securities Financial Institutions Electric Fi
Slide 40: Models of Alliance and collaboration with Powerful Partners
Ⅳ. Medium-Term Management Plan – Quantitative Goals and the Progress Models of Alliance and collaboration with Powerful Partners Powerful Partners Kishida Government Powerful Partners Model A New Capitalism Model B Financial Wellness Settlement Insurance Plan to Double Income Business Venture from A
Slide 41: Human Resources Development – Our Approach
Ⅴ. Human Resources Development –Our Approach In order to accomplish what we desired in formulating the management strategy, we decided to deploy two basic tactics for human resources development. One is “Operation Reinforcement” to drive forth aggressive management, and the other is “Continuity and
Slide 42: Sustainability - Our Approach
Ⅵ. Sustainability - Our Approach Achievement in FYE March 2023 Established SVJ * Committee ・Aiming to further permeate employees with the action guideline, ✓ Introduced “Social Value & Justice”KPI “Social Value & Justice” comes first, and facilitate comprehensive discussions regularly about what the
Slide 43: The Current Status of the Group's Capital
Ⅶ. The Current Status of the Group’s Capital (Billions of yen) The Group’s Capitalization Status Brokerage Core Securities Capital in use to run core securities brokerage operation 96.2 (At the end of Mar. 2023) （単位：億円） (Billions of yen) Capital in use to run group subsidiaries’ operations 5.2 Conso
Slide 44: Overall Summary
Ⅷ. Overall Summary (Action Plan and Results of the First Half of the FYE March 2023) Operating environment we face ➢ Although the unstable market continues, sign of interest rate slowdown is appearing in overseas. We assume a moderate upward momentum in the market. ➢ Individual investors in general
Slide 45: Inquiries to be directed to
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 s
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