Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — 3Q FY2011 Earnings Presentation
28 slides from Japan Securities Finance's earnings presentation, February 2012
Slide 1: Financial Presentation for 3Q, FY2011
Financial Presentation for 3Q, FY2011 Japan Securities Finance Co.,Ltd This document is an English translation for non-Japanese investors convenience. Although Japan Securities Finance intend to faithfully translate the Japanese documents into English, the accuracy and correctness of translation are
Slide 2: Financial Summary
a Financial Summary
Slide 3: Financial Summary for 3Q, FY2011
Financial Summary for 3Q, FY2011 ¥ mil Parent Consolidated FY2010 FY2011 FY2010 FY2011 Change Change 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Operating ▲1,769 ▲1,541 13,111 11,341 (▲13.5%) 17,056 15,514 (▲9.0%) Revenues EX Premium ▲1,180 ▲952 Charges 10,497 9,317 14,442 13,490 (▲11.2%) (▲6.6%) Operating Expenses 6,2
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Dec-10 Dec-11 Securities Finance Bussiness 13,050 11,267 Margin Loan Business 6,484 4,678 【Margin Loan】 【Margin Loan】 (38.0%) (30.1%) ・・ The The revenues revenues inin the the business business decreased decreased due due to to balance balance Interest on Lo
Slide 5: Financial Highlights for FY2011, 3Q
Financial Highlights for FY2011, 3Q 1 As As the the outstanding outstanding balance balance of of standardized standardized margin margin transactions transactions declined, declined, both both Margin Margin Loan Loan Balance Balance and and Stock Stock Loan Loan Balance Balance decreased. decreased
Slide 6: Avg. Outstanding Balance of Margin Loans and Stock Loans
Avg. Outstanding Balance of Margin Loans and Stock Loans \ tri Margin Loans(left) Stock Loans(left) Margin Loan Rate(right) 2.0% FY2010 FY2011, 3Q Margin Loan：\293bn Margin Loan：\229bn 0.4 Stock Loan： \ 228bn 0.97％ Stock Loan： \178bn 0.97% 0.77% 1.0% 0.2 0.0 0.0% Apr- May- Jun- Jul- Aug- Sep- Oct- N
Slide 7: 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 Buying, Bottom Nikkei225(right) 1.6 M ar-09 \684bn 1.4 1.2 10,00 0 1.0 Selling, Bot tom 0.8 Nov-11 0.6 \263bn 8,000 0.4 0.2 0.0 6
Slide 8: About Application of Tender Offer for Shares of JBIS Holdings
About Application of Tender Offer for Shares of JBIS Holdings 1 The The Tender Tender Offer Offer for for shares shares of of JBIS JBIS Holdings Holdings by by NTT NTT Data Data ○Summary of the tender offer application ・Number of the possession of JBISHD stocks ： 10,710,977 （Possession ratio 32.67％）
Slide 9: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2011, 1Q-3Q Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 15,514 3,045 2,012 JSF - 11,341 1,164 538 JSF Trust Bank 100% 3,635 1,803 1,802 Nihon Building 100% 870 283 166 Equity-method - Loss in Equity-Method ▲97 *
Slide 10: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2010 FY2011 change 1Q-3Q 1Q-3Q Recurring Revenues 3,313 3,635 321 Trust charges 227 223 ▲4 Recurring Income 842 1,803 961 Extraordinary Profit 846 － ▲846 Net Income 1,697 1,802 105 Equity Ratio 23.29 ％ 35.49％ Financial Financial Highlights Highlights for f
Slide 11: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings ● Ratio of Securities(as of Dec-11) \mil Mar-11 Sep-11 Dec-11 Notes 0% JGB 930,443 488,822 427,428 JGB less than 1Y less than 1Y 830,509 428,939 347,426 30% 40% over 1Y 99,933 59,882 80,001 JGB over 1Y Municipal Bond 196,775 187,486 180,572 Corpora
Slide 12: Estimated Figures for FY2011
Estimated Figures for FY2011 Parent Consolidated FY2011 FY2011 FY2011 FY2011 estimated estimated estimated estimated 3Q Result difference 3Q Result difference (announced on (announced on (announced on (announced on \ mil 7/Nov/11) 6/Feb/12) 7/Nov/11) 6/Feb/12) Operating Income 903 1,100 1,100 － 2,97
Slide 13: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans 1Q-3Q, FY2011 Results FY2011 Precondition Excess of Excess of Margin Loan Excess Margin Loan Excess of ¥126bn of Stock Loan ¥120bn Stock Loan ¥75bn ¥70bn Matching Matching ¥103bn ¥100bn Margin Loan Stock Loan Margin Loan Stock Loan ¥229bn ¥178bn ¥220bn ¥170bn Jan
Slide 14: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2011, 1Q-3Q Results FY2011 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 2,971 3,045 2,012 3,100 2,100 700 JSF － 903 1,164 538 1,100 1,300 1,200 JSF Trust Bank 100% -
Slide 15: Appendix
a Appendix
Slide 16: Dividend Policy
Dividend Policy ¾ ¾ Ｎｅｗ Dividend Policy Basically, Dividend Payout Ratio of about 40% on Consolidated Financial Results, Results considering Dividend on Equity (DOE) Ratio. FY2011 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 Annual Dividend per share ¥
Slide 17: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-07 Mar-08 Mar-09 Mar-10 Dec-10 Mar-11 Dec-11 Securities Finance Bussiness 34,917 38,619 34,427 20,817 13,050 17,558 11,267 Margin Loan Business 23,186 23,156 19,638 12,954 6,484 8,922 4,678 (53.3%) (45.8%) (44.3%) (46.5%) (38.0%) (39.0%) (30.1%) Interest
Slide 18: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2010 FY2011 FY2006 FY2007 FY2008 FY2009 FY2010 1Q-3Q 1Q-3Q avg. 1,444,347 917,219 336,324 324,205 295,718 293,429 229,212 Margin Loans term-end 1,634,700 508,587 244,306 328,755 230,966 305,083 196,816 Bond Financing & General avg. 79,425 76,941 51,887 46,863
Slide 19: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans \ tr i 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 11 Japan Securities Finance Co.,Ltd 19
Slide 20: 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 11 Japan Securities Finance Co.,Ltd 20
Slide 21: Securities Account
Securities Account Dec-11 notes Dec-11 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 339,534 810,295 Lent Margin Loans 196,816 margin loan Margin Loans 139,082 stock loan Collateral Money of Securities 850,710 Borrowed Excess of Stock Loan 53,951 stock loan Securities Accou
Slide 22: 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 23: JGB Balance
JGB Balance \ bn JSF 3,000 2.0 \ mil 2,500 1,117 1.5 JSF Dec-10 Mar-11 Dec-11 2,000 1,085 808 JGB Balance 2,535,060 2,987,211 2,381,119 1,500 1.0 (1.16) (1.03) (1.11) 1 year or less 1,450,482 1,870,087 1,572,960 over 1Y 1,084,578 1,117,124 808,158 1,000 1,870 1,450 0.5 (15Y floating JGB) 193,371 194
Slide 24: 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 25: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10 .0% 9 .0% 8.75% Loan R ate Interest R ate on C ollateral M oney of Stock Loan 8 .0% Lending Fee 7 .0% Profit M argin 6 .0% 5.00% 5 .0% Sep-93 4 .0% 3.75% N ov-10 3 .0% Jan-09 2 .0% M ay-02 1.17 % 1 .0% 0 .0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 0
Slide 26: 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 27: 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 28: Notice
Notice This document includes statements for business forecast. These statements don’t 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.,L
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