Sbi Holdings Incorporated · TSE:8473
Sbi — Sbi Holdings Inc Ord — H1 FY2022 Earnings Presentation
189 slides from Sbi's earnings presentation, Nov 15, 2022
Slide 1: SBI Holdings, Inc. Financial Results
Strategic Business Innovator SBI Holdings, Inc. Financial Results for the Six-month Period Ended September 30, 2022 (Fiscal Year Ending March 31, 2023) November 14, 2022 [Unauthorized reproduction is prohibited]
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. The business collaboration with Shinsei Bank described in this document w
Slide 3: Agenda
I. 1H FY2022 Consolidated Financial Results II. Fully incorporate Shinsei Bank into the Group’s overall strategy and ensure business operations toward integration [Unauthorized reproduction is prohibited] 2
Slide 4: I. 1H FY2022 Consolidated Financial Results
I. 1H FY2022 Consolidated Financial Results [Unauthorized reproduction is prohibited] 3
Slide 5: Consolidated performance overview
[Consolidated performance overview] • Revenue increased 40.7% year-on-year to JPY 470.2bn, which was historical high for a 1H period, largely due to a significant increase in revenue from the Financial Services Business (81.3% year-on-year to JPY 403.1bn) • Profit before income tax expense in the Fi
Slide 6: 1H FY2022 Consolidated Performance (IFRS)
1H FY2022 Consolidated Performance (IFRS) [Year-on-year comparison] (Unit: JPY million) 1H FY2021 1H FY2022 YoY % (Apr.-Sept. 2021) (Apr.-Sept. 2022) change Record Revenue 334,283 high*1 470,234 +40.7 Profit before income tax expense 109,276 52,687 -51.8 Profit for the period 88,938 37,993 -57.3 Pro
Slide 7: Quarterly Consolidated Performance of FY2022 (IFRS)
Quarterly Consolidated Performance of FY2022 (IFRS) (Unit: JPY million) FY2022 QoQ % change / 1Q 2Q QoQ change (Apr.-June 2022) （July-Sept. 2022） Revenue 232,150 238,084 +2.6 Profit before income tax 23,522 29,165 +24.0 expense Profit for the period 16,669 21,324 +27.9 Profit attributable to owners
Slide 8: Comparison of Profit Before Income Tax with Major Securities Companies
Comparison of Consolidated Profit Before Income Tax Expense with Major Securities Companies (Unit: JPY million) YoY % 1H FY2021 1H FY2022 change / YoY (Apr.-Sept. 2021) (Apr.-Sept. 2022) change SBI Holdings (IFRS) 109,276 52,687 -51.8 Nomura Holdings (US-GAAP) 97,000 43,217 -55.4 Daiwa Securities Gr
Slide 9: Quarterly Comparison of Performance with Major Securities Companies
Quarterly Comparison of Performance with Major Securities Companies (Unit: JPY million) Operating Revenue Profit Before Income Tax Expense QoQ % YoY % 1Q FY2021 1Q FY2022 1H FY2021 1H FY2022 change / (Apr.-June 2021) (Apr.-June 2022) change (July-Sept. 2021) (July-Sept. 2022) YoY change SBI Holdings
Slide 10: Basic Concept of Segment Classification
Basic Concept of Segment Classification • To enable more flexible management decisions, the Group classifies its businesses into business segments that generate relatively stable profits, are highly dependent on market conditions and have large performance volatility, and are advanced and expected t
Slide 11: 1H FY2022 Performance by Segment (IFRS)
1H FY2022 Performance by Segment (IFRS) [Year-on-year comparison] Profit Before Income (Unit: JPY million) Revenue Tax Expense YoY % 1H FY2021 1H FY2022 YoY % 1H FY2021 1H FY2022 change / (Apr. 2021– (Apr. 2022– (Apr. 2021– (Apr. 2022– Sept. 2021) Sept. 2022) change Sept. 2021) Sept. 2022) YoY chang
Slide 12: FY2022 Quarterly Revenue by Segment (IFRS)
FY2022 Quarterly Revenue by Segment (IFRS) Revenue (Unit: JPY million) FY2022 QoQ % change / QoQ 1Q 2Q change (Apr.-June 2022) （July-Sept. 2022） Financial Services 190,094 213,017 +12.1 Business Asset Management 4,109 4,246 +3.3 Business Investment Business 21,606 8,276 -61.7 Crypto-asset Business 1
Slide 13: FY2022 Quarterly Profit Before Income Tax by Segment
FY2022 Quarterly Profit Before Income Tax Expense by Segment (IFRS) Profit before Income Tax Expense (Unit: JPY million) FY2022 QoQ % change 1Q 2Q / QoQ change (Apr.-June 2022) （July-Sept. 2022） Financial Services Business 27,816 41,810 +50.3 Asset Management Business 717 629 -12.3 Investment Busine
Slide 14: Interim Dividend of JPY 30 Per Share Expected
Interim Dividend of JPY 30 Per Share is Expected to be Implemented [Basic policy for shareholder return] The total amount of dividends plus share buybacks will be approximately 30% profit before income tax expense in the Financial Services Business for the time being ■ Dividend forecast (result) per
Slide 15: Business Overview of Core Businesses
[Business Overview of Core Businesses] [Unauthorized reproduction is prohibited] 14
Slide 16: 1. Financial Service Business
1. Financial Service Business [Financial Service Business Consolidated Results (IFRS)] (Unit: JPY million) 1H FY2021 1H FY2022 YoY (%) (Apr. 2021 – Sept. 2021) (Apr. 2022 – Sept. 2022) Revenue 222,294 403,111 +81.3 Profit before income tax expense 58,989 69,626 +18.0 [Unauthorized reproduction is pr
Slide 17: Financial Services: Securities business
1. Financial Service Business: (1) Securities business [Major constituent companies] SBI SECURITIES, SBI Liquidity Market, SBI FXTRADE, SBI MONEYPLAZA, PTS operating companies, overseas securities subsidiaries, etc. [Business highlights] • SBI SECURITIES recorded JPY 80.8bn in operating revenue (-1.
Slide 18: SBI SECURITIES 1H FY2022 Consolidated Results
1. (1) Securities business SBI SECURITIES 1H FY2022 Consolidated Results (J-GAAP) [Year-on-year comparison] (Unit: JPY million) 1H FY2021 1H FY2022 YoY (%) (Apr. 2021 – Sept. 2021) (Apr. 2022 – Sept. 2022) Operating revenue 82,027 80,839 -1.4 Net operating revenue 77,253 74,778 -3.2 Operating profit
Slide 19: Significant Growth in FX-Related Business
1.(1) Securities business Achieved Significant Growth in Revenue and Profit in FX-Related Business Against a Backdrop of Rising Foreign Exchange Transactions due to the Rapid Depreciation of the Yen Operating revenue of SBI Liquidity Market (Non-consolidated, J-GAAP) (Unit: JPY million) 1H FY2021 1H
Slide 20: Securities Subsidiaries in Thailand and Cambodia
1. (1) Securities business： SBI Thai Online Securities, SBI Royal Securities Endeavor to Establish Industry Positioning and Further Expand Business Base at Securities Subsidiaries in Thailand and Cambodia (Investment ratio 100.0%, SBI Thai Online Securities established in October 2014) First pure-
Slide 21: Financial Services: Banking business
1. Financial Services Business: (2) Banking business [Major constituent companies] Shinsei Bank Group, SBI Sumishin Net Bank, Overseas banks including SBI SAVINGS BANK [Business highlights] • Shinsei Bank recorded JPY 30,544m (+11.4% YoY) profit before income tax expense under J-GAAP, backed by stro
Slide 22: Shinsei Bank 1H FY2022 Consolidated Performance
1. (2) Banking business: Shinsei Bank Group Shinsei Bank 1H FY2022 Consolidated Performance (J-GAAP) - Achieved sales and profit growth on the back of strong corporate business - (Unit: JPY million) YoY % 1H FY2021 1H FY2022 change Gross operating 110,678 119,451 +7.9 profit Ordinary Business 33,443
Slide 23: Number of Retail-accounts and Deposits at Shinsei Bank
1. (2) Banking business: Shinsei Bank Group Number of Retail-accounts and Deposits at Shinsei Bank - Deposits increased significantly due to the successful expansion of the transaction base with corporate and individual customers - (100 thousand (JPY billion) 31.1 accounts) 30.9 30.8 30.5 30.6 11,00
Slide 24: Transition in SBI Sumishin Net Bank's Financial Results
1. (2) Banking business: SBI Sumishin Net Bank Transition in SBI Sumishin Net Bank’s Financial Results (Equity method earnings / IFRS) SBI Holdings’ equity method earnings of SBI Sumishin Net Bank, based on IFRS for 1H FY2022 was JPY 1,308m, down 70.7% year-on-year (JPY million) 4,461 YoY -70.7% 1,3
Slide 25: SBI Sumishin Net Bank's Performance (J-GAAP)
1. (2) Banking business: SBI Sumishin Net Bank SBI Sumishin Net Bank’s Performance (J-GAAP) SBI Sumishin Net Bank’s performance was supported by steady growth in lending on the housing loan business, with both ordinary revenues and ordinary profit in the J-GAAP based increasing year-on-year Ordinary
Slide 26: Number of Accounts and Deposits Since Opening
1. (2) Banking business: SBI Sumishin Net Bank Transition of the Number of Accounts and Balance of Deposits Since SBI Sumishin Net Bank Opening (Unit: 10 thousand (JPY 100 accounts) million) 90,000 573 600 535 Balance of Deposits (Left) 74,863 500 451 Number of accounts (Right) 71,159 393 354 400 32
Slide 27: Neo-bank Initiatives Promoted by SBI Sumishin Net Bank
1. (2) Banking business: SBI Sumishin Net Bank The “Neo-bank Initiatives” Promoted by SBI Sumishin Net Bank (J-GAAP) The BaaS business, including the Neo-bank business, achieved profitability in 1H FY2022 Further accelerate efforts to achieve full-year profitability <Ordinary income of BaaS busi
Slide 28: Neo-bank Initiatives with Major Business Corporations
1. (2) Banking business: SBI Sumishin Net Bank The “Neo-bank Initiatives,” Promoted in Collaboration with Major Business Corporations, Accelerates the Expansion of the Customer Base <Examples of the “Neo-bank Initiatives”> Establishment of a joint venture with JAL. Various banking services are avail
Slide 29: Financial Results of SBI SAVINGS BANK
1. (2) Banking Business: SBI SAVINGS BANK Financial Results of SBI SAVINGS BANK Net Profit of SBI SAVINGS BANK Profit Before Income Tax Expense of (K-GAAP) SBI SAVINGS BANK (IFRS) (KRW billion) (JPY million) 293.1 18,382 257.3 3Q 99.5 YoY 14,686 79.6 -12.2% 2Q 10,227 YoY 8,132 2Q 107.1 87.6 -20.1% 1
Slide 30: SBI SAVINGS BANK's Prime Assets Grown Steadily
1. (2) Banking Business: SBI SAVINGS BANK SBI SAVINGS BANK’s Prime Assets have Grown Steadily Changes in indicators since becoming a subsidiary (K-GAAP) (KRW 100 Delinquency rate *Converted at KRW 1 = JPY 0.1043 million) for all loans Total Assets ) (%) 18,000 KRW 16,895.4bn 51.6％ (Approx. JPY 1,762
Slide 31: Bank Subsidiaries in Russia and Cambodia
1.(2) Banking business： SBI Bank, SBI LY HOUR BANK Focusing on Prudent Business Operations at Bank Subsidiaries in Russia and Cambodia Based on the Market Environment and Local Conditions SBI Bank (Investment ratio： 90.7％) Made it a wholly owned subsidiary in August 2017 A commercial bank in Rus
Slide 32: Financial Services: Insurance business
1. Financial Services Business: (3) Insurance business [Major constituent companies] SBI Insurance Group, SBI Insurance, SBI Life Insurance, Small-amount short-term insurance companies [Business highlights] • SBI Insurance Group’s consolidated ordinary revenue for 1H FY2022 (preliminary figures on a
Slide 33: SBI Insurance Group's Performance
1. (3) Insurance business SBI Insurance Group’s Performance Consolidated results for 1H FY2022 (J-GAAP) (Unit: JPY million) 1H FY2021 1H FY2022 YoY % (Apr. – Sept. 2021) (Apr. – Sept. 2022) change Ordinary revenue 43,806 47,897 +9.3 Ordinary profit 3,307 4,154 +25.6 Profit attributable to parent of
Slide 34: SBI Insurance Group's In-Force Contracts Increased
1. (3) Insurance business SBI Insurance Group’s Total Number of In-Force Contracts Steadily Increased SBI Insurance Group’s total number of in-force contracts CAGR 15.3% (From end of Mar. 2016 JOGUCHI SAFETY SSI (million contracts) to end of Sept. 2022) joins the Group SBI PRISM SSI joins the Group
Slide 35: 2. Asset Management Business
2. Asset Management Business [Major constituent companies] Morningstar Japan, SBI Asset Management (a subsidiary of Morningstar Japan), Rheos Capital Works [Asset Management Business Consolidated Results (IFRS)] (Unit: JPY million) 1H FY2021 1H FY2022 YoY (%) (Apr. 2021 – Sept. 2021) (Apr. 2022 – Se
Slide 36: Morningstar Japan Group Reorganizing Asset Management Companies
2. Asset Management Business Morningstar Japan Group Promotes Operational Efficiency by Reorganizing its Asset Management Companies [As of end of March 2022] Morningstar Japan October 1, 2022 Merged with Morningstar Japan August 1, 2022 Merger of Three Companies under the SBI Asset Management Group
Slide 37: Morningstar Japan Group Increased AUM
2. Asset Management Business Morningstar Japan Group has Steadily Increased its AUM - Balance of investment assets nears JPY 4.5tn - AUM from institutional investors, which are mainly Shinsei Investment (JPY billion) regional financial institutions, JPY 2,166.5bn Management (as of end of September 2
Slide 38: 3. Investment Business
3. Investment Business [Major constituent companies/businesses] Private Equity Business, SBI Leasing Service [Investment Business Consolidated Results (IFRS)] (Unit: JPY million) 1H FY2021 1H FY2022 YoY (%) change/ (April 2021 to September (April 2022 to September 2021) 2022) YoY change Revenue 80,8
Slide 39: TPBank in Vietnam Recorded Large Valuation Loss
3. Investment Business TPBank in Vietnam Recorded a Large Valuation Loss as the Stock Price Continue to Be Sluggish in the Second Quarter, While Its Business Performance Continue to Significantly Improve and Reach at Its Record High < Transition of Vietnam VN Index and TPBank Stock Price > < Transit
Slide 40: IPOs and M&As of SBI Group Investee Companies
3. Investment Business IPOs and M&As of SBI Group Investee Companies FY2021 FY2022 Full-Year Result Full-Year Forecast IPO・M&A deals 22 35 During the Fiscal Year, 11 Companies Realized either IPO or M&A Investee Investee EXIT Date Market EXIT Date Market Company Company PT GOTO Gojek M&A (KOSDAQ Apr
Slide 41: SBI Leasing Services Newly Listed on TSE Growth Market
3. Investment Business SBI Leasing Services Co., Ltd. Newly Listed on the Tokyo Stock Exchange(TSE) Growth Market on October 19, 2022 1H FY2022 Consolidated Performance (J-GAAP) (Unit: JPY million) FY 2022 FY2020 FY2021 (April 2020 to March 2021) (April 2021 to March 2022) 1H Full Year Results Resul
Slide 42: 4. Crypto-asset Business
4. Crypto-asset Business [Major constituent companies / business] SBI VC Trade, B2C2, BITPoint Japan, crypto asset mining business [Crypto-asset Business Consolidated Performance (IFRS)] (Unit: JPY million) 1H FY2021 1H FY2022 YoY % change/ (Apr.-Sept. 2021) (Apr.-Sept. 2022) YoY change Revenue 15,5
Slide 43: SBI VC Trade Expands New Services
4. Crypto-asset business SBI VC Trade Expands New Services to Meet the Diversifying Needs of Customers Staking Service (Started from October 1, 2022) • A unique mechanism for crypto assets whereby holding digital assets contributes to the maintenance of the blockchain and generates rewards. There is
Slide 44: BITPOINT Joins SBI Group, Expands Customer Base
4. Crypto-asset business BITPOINT Joins the SBI Group and Continues to Expand Its Customer Base and Service Offerings in the Crypto Asset Business Number of Customers in SBI Group’s Crypto-asset Business* (September 2020 – September 2022) July 1, 2022 9.0 8.0 *The number of customers as of the end o
Slide 45: B2C2 Expands Futures and Options Trading
4. Crypto-asset business B2C2 Strives to Enhance Profitability Through Expansion of not Only Spot Trading of Crypto Assets but also Futures and Options Trading - Futures and options trading is booming in the crypto asset market - • According to CME Group, many institutional investors prefer futures
Slide 46: 5. Non-Financial Business
5. Non-Financial Business [Major constituent businesses] Biotechnology, Healthcare & Medical Informatics Businesses, other Businesses Including Web3.0 [Non-Financial Business Segment Consolidated Performance (IFRS)] (Unit: JPY million) 1H FY2021 1H FY2022 YoY % change / (Apr. – Sept. 2021) (Apr. – S
Slide 47: Biotechnology, Healthcare & Medical Informatics Profit
5. Non-Financial Business: Biotechnology, Healthcare & Medical Informatics Business Profit before Income Tax Expense of the Biotechnology, Healthcare & Medical Informatics Business Companies (IFRS) (Unit: JPY million) 1H FY2021 1H FY2022 YoY % change (Apr. – Sept. 2021) (Apr. – Sept. 2022) / YoY cha
Slide 48: SBI Biotech Licensed Pipeline (1)
5. Non-Financial Business: SBI Biotech Pipeline Licensed Out by SBI Biotech Shows Steady Progress in Research and Development ① Licensing Adaptation Progress partner (timing) disease Recruitment subject for Phase II trial Phase II Systemic lupus targeting Systemic lupus erythematosus (Subject erythe
Slide 49: SBI Biotech Licensed Pipeline (2)
5. Non-Financial Business: SBI Biotech Pipeline Licensed Out by SBI Biotech Shows Steady Progress in Research and Development ② Licensing Adaptation disease Progress partner (timing) Phase I trial targeting KK4277 Kyowa Kirin Autoimmune Phase I autoimmune disease is underway. (SBI-9674) (Dec. 2016)
Slide 50: Main Pipeline of 5-ALA Pharmaceutical Products
5. Non-Financial Business: SBI Pharmaceuticals Progress in the Main Pipeline of Pharmaceutical Products Utilizing 5-ALA*1 Current status Fields Pipeline projects Phase I Phase II Phase III Bladder cancer Usage change of intraoperative diagnostic agent Phase III underway (extension of dosing time) •
Slide 51: ALA PLUS TOH DOWN DRINK
5. Non-Financial Business: SBI ALApromo SBI ALApromo Strives to Strengthen and Stabilize Profitability through Expansion of Various Products Centered on Foods with Function Claims including 5-ALA Foods with Function Claims New product “ALA PLUS TOH DOWN DRINK” Function Claims: This product contains
Slide 52: SBI Art Auction Business
5. Non-Financial Business: SBI Art Auction SBI Art Auction Develops Art Auction Related Business SBI Art Auction developing auction business specializing in contemporary art, increased revenue by 31.8% year-on-year to JPY 688m and profit before income tax expense by 58.9% year-on-year to JPY 313m
Slide 53: II. Fully incorporate Shinsei Bank into Group strategy
II. Fully incorporate Shinsei Bank into the Group’s overall strategy and ensure business operations toward integration 1. The overall strategy of the SBI Group will be further strengthened by fully incorporating Shinsei Bank, which has become a subsidiary of SBI Holdings in both name and substance 2
Slide 54: Overall Strategy Strengthened by Incorporating Shinsei Bank
1. The overall strategy of the SBI Group will be further strengthened by fully incorporating Shinsei Bank, which has become a subsidiary of SBI Holdings in both name and substance (1) Promote to Unify the SBI and Shinsei Bank Group (2) Thoroughly pursue business synergies with Shinsei Bank Group (3)
Slide 55: Promote to Unify SBI and Shinsei Bank Group
(1) Promote to Unify the SBI and Shinsei Bank Group ① Reorganization between SBI and Shinsei Bank Group ② Personnel exchange between SBI and Shinsei Bank Group [Unauthorized reproduction is prohibited] 54
Slide 56: SBI Regional Bank Holdings Becomes Bank Holding Company
On October 11, SBI Regional Bank Holdings received approval from the FSA to become a bank holding company under Article 52-17 of the Banking Act On October 21, the acquisition of an additional 2,500,000 shares of Shinsei Bank common stock was completed, and SBI Regional Bank Holdings became a ba
Slide 57: Reorganization between SBI and Shinsei Bank Group
① Reorganization between SBI and Shinsei Bank Group [Unauthorized reproduction is prohibited] 56
Slide 58: Intra-group Reorganization (i)
Implementation of a Full-fledged Intra-group Reorganization between the SBI and Shinsei Bank Group (i) Morningstar Japan acquired Shinsei Investment Management as a subsidiary Stock transfer [Morningstar Japan] (October 3, 2022) Becomes a wholly owned subsidiary [Shinsei Investment Management] • Mut
Slide 59: Intra-group Reorganization (ii)
Implementation of a Full-fledged Intra-group Reorganization between the SBI and Shinsei Bank Group (ii) - SBI SECURITIES, Shinsei Bank, and Shinsei Securities entered into a basic agreement regarding the organizational restructuring of Shinsei Securities - Concluded basic agreement on organizational
Slide 60: Measures to Enhance Group-wide Unification
Promoted Various Measures to Enhance Group-wide Unification and Improve Back-office Efficiency Cost reductions have already been realized through joint purchase of licenses for IT systems used by both groups Considering establishing a JV to improve operational efficiency in areas such as recruit
Slide 61: Personnel exchange between SBI and Shinsei Bank Group
② Personnel exchange between SBI and Shinsei Bank Group [Unauthorized reproduction is prohibited] 60
Slide 62: Personnel Exchange between SBI and Shinsei Groups
Personnel Exchange between the SBI and Shinsei Groups to Promote Unification Mutual exchange of personnel in each business field to build unity as a group SBI Group⇒Shinsei Bank Group: 22 employees* on secondment to 5 companies 91 employees participated in Shinsei Bank’s training programs Shinsei Ba
Slide 63: Pursue business synergies with Shinsei Bank Group
(2) Thoroughly pursue business synergies with Shinsei Bank Group [Unauthorized reproduction is prohibited] 62
Slide 64: Collaboration in Intermediary Services and Bank Agency
Collaboration between SBI and Shinsei Bank Group in Financial Products Intermediary Services and Bank Agency Business [SBI SECURITIES] August 2022 SBI SECURITIES and Shinsei Bank launched financial instruments intermediary and banking agency services September 2022 Launched an investment trust a
Slide 65: Co-managed Shops of Shinsei Bank and SBI MONEYPLAZA
Co-managed Shops of Shinsei Bank and SBI MONEYPLAZA - Expand SBI MONEYPLAZA’s business base and Shinsei Bank’s profitability by leveraging Shinsei Bank’s face-to-face channels - Prefectures with Shinsei Bank branches ：Location of branches ：Location of co-managed shops Nov. 2022 Aug. 2022 Established
Slide 66: Initiatives to Strengthen the Triangle Strategy
(3) Initiatives to further strengthen the “Triangle Strategy” promoted by the SBI Group, Shinsei Bank Group, and Regional Financial Institutions ① Utilization of Finance Functions ② Utilization of “BANKIT®” by APLUS [Unauthorized reproduction is prohibited] 65
Slide 67: Triangle Strategy Concept
“Triangle Strategy” Concept by the SBI Group, Shinsei Bank Group, and Regional Financial Institutions <Image> Regional financial institutions Determine business needs in the region Demonstration of brand strength in the region Providing fintech technology and expertise Provision of banking and
Slide 68: Utilization of Finance Functions
① Utilization of Finance Functions [Unauthorized reproduction is prohibited] 67
Slide 69: Triangle Strategy: Structured Finance Business
Further Reinforcement of the “Triangle Strategy”: Structured Finance Business Conventional collaboration was centered on the introduction of deals originated by Shinsei Bank to regional banks Currently, Shinsei Bank intends to strengthen its “loan coordination” activities, such as arranging synd
Slide 70: Growth Support Leveraging Shinsei Bank's Financing Functions
Diverse Growth Support in the Corporate Business Areas by Leveraging Shinsei Bank’s Financing Functions • Provide tailor-made financing to venture companies with high growth aspirations and needs, based on the growth potential of the company • Provide not only financing but also multifaceted growth
Slide 71: Utilization of BANKIT by APLUS
② Utilization of “BANKIT®” by APLUS [Unauthorized reproduction is prohibited] 70
Slide 72: Triangle Strategy: Collaboration Utilizing BANKIT (1)
Further Strengthening of “Triangle Strategy”: Collaboration by Utilizing “BANKIT ®” (1) -Easier entry into financial business for partner companies for further value co-creation- Proposals will be made under the “White Label Plan” for businesses that are considering offering new applications to user
Slide 73: Triangle Strategy: Collaboration Utilizing BANKIT (2)
Further Strengthening of “Triangle Strategy”: Collaboration through Utilization of “BANKIT ®” (2) - Sales expansion of “BANKIT ®” targeting local companies - Supporting DX promotion of businesses by providing BANKIT ® linked to regional bank accounts Reducing the need for point cards contributes to
Slide 74: Operating Assets Balance at APLUS
Operating Assets Balance at APLUS (End of March 2019 – Sept. 2022) - Expanding the BANKIT ® business and other areas for multifaceted expansion of the foundation - (JPY billion) Housing-related loans etc. *Includes credit guarantees and leases Credit card Auto credits* 1,482.4 1,515.1 Other shopping
Slide 75: Strengthen non-bank areas through M&A
(4) Strengthen non-bank areas through M&A and various other measures [Unauthorized reproduction is prohibited] 74
Slide 76: Synergies between ARUHI and Shinsei Bank
Creating Synergies between ARUHI Corporation and Shinsei Bank As a result of the TOB for ARUHI Corp., which has the largest market share in Japan for the “Flat 35” housing loan product, the company became a consolidated subsidiary of SBI Holdings (voting right ratio: 51.0%) as of November 18, 2022 F
Slide 77: Operating Assets Balance at Shinsei Financial
Operating Assets Balance at Shinsei Financial - Stable and continuous increase in balance through cooperation with SBI Group and Shinsei Group companies - Shinsei Bank Smart Guarantee No Loan Lake Lake ALSA (JPY billion) Card Loan+ etc. 509.9 516.8 487.9 482.4 476.3 (Others) 2.6 20.6 47.3 27.3 242.5
Slide 78: Expand Business Benefits Between SBI and Shinsei Bank Group
To Further Expand Business Benefits not only from SBI to Shinsei Bank Group, but also from Shinsei Bank to SBI Group Progress in business linkages, such as customer introduction and product offerings, has been made Customer base: Customer base: over 35.3 million Expansion of contributions over 8.5 m
Slide 79: Regional Revitalization Strategy Advances to Phase II
2. “Regional Revitalization Strategy” of SBI Group Advances to Phase II (1) SBI Group’s approach supporting changes in the business environment surrounding regional financial institutions (2) Measures to further improve profitability of regional financial institutions (3) The next step toward realiz
Slide 80: SBI Group's approach supporting regional financial institutions
(1) SBI Group’s approach supporting changes in the business environment surrounding regional financial institutions [Unauthorized reproduction is prohibited] 79
Slide 81: Changes Surrounding Regional Financial Institutions (1)
Signs of Change in the Environment Surrounding Regional Financial Institutions ① - With interest rates on the rise around the world, interest rates in Japan are also expected to rise in the near future - （%） (%) Change in Yield on 10-Year Government Bonds 6 10.5 Russia as of Nov. 11, 2022 Vietnam 5
Slide 82: Changes Surrounding Regional Financial Institutions (2)
Signs of the Changing Environment Facing Regional Financial Institutions ② The expanding COVID-19 pandemic has led to a significant increase in the savings gap, but the rate of increase has hit a ceiling Profitability of domestic loan business has recently fallen by 1.1%, but signs of normalizat
Slide 83: Changes Surrounding Regional Financial Institutions (3)
Signs of Changed Environment for Regional Financial Institutions ③ - High level of credit risk management called for as zero-zero loans come to an end - Year-on-year change in the number of corporate bankruptcies was -0.9% in September this year, leaving the impression their downward trend has lev
Slide 84: SBI Group's Capital Support in Response to Changes
Changes in the External Environment and the SBI Group’s Capital Support in Response to the Changes Further Strengthening of Capital Alliance In addition to improving profitability and reducing SG&A expenses at each affiliated regional financial institutions, SBI Group actively proposes measures to
Slide 85: Enhancing Credit Risk Management with Keystone Partners
Utilizing the SBI Group to Enhance Credit Risk Management - Provide management consulting and business restructuring functions - [Image of Business Collaboration] Keystone Partners • Extensive experience and in-depth knowledge in corporate loans (business and corporate lending), and hands-on support
Slide 86: Measures to Improve Profitability of Regional Financial Institutions
(2) Measures to further improve profitability of regional financial institutions ① Reform of management infrastructure, including a fundamental review of systems ② Strengthen support for fee business expansion in the non-bank area ③ Further enhancement of profitability through sophisticated manageme
Slide 87: Reform of management infrastructure
① Reform of management infrastructure, including a fundamental review of systems [Unauthorized reproduction is prohibited] 86
Slide 88: Reducing and Equalizing System Costs
Measures Promoted by the SBI Group to Substantially Reduce and Equalize System Costs for Regional Financial Institutions - Switch huge system costs from fixed to variable - Challenges of conventional systems Solutions that the SBI Group can offer ① Large investment required for large-scale system re
Slide 89: Development of Next-Generation Banking System
Steady Progress in Development of Next-Generation Banking System - Fukushima Bank agreed to become the first user and one other bank has already made an offer to adopt this system - SBI Regional Revitalization Services and Future Architect have formed a business alliance to promote the development
Slide 90: SBI Common ATM Services
Promoting the Development and Provision of SBI Common ATM Services to Reduce System Costs • By making the ATM under development for the next-generation banking system into a common specification that other companies’ accounting systems can use, we plan to release it as an SBI common ATM service (sch
Slide 91: Support for Fee Business Expansion in Non-bank Area
② Strengthen Support for Fee Business Expansion in the Non-bank Area - Expanding the fee business of regional financial institutions with functions to be acquired by the SBI Group through M&A in the non-bank area - ARUHI’s main business is face-to-face sales at branches, with 152 branches in 42 pref
Slide 92: Sophisticated Management of Securities
③ Further Enhancement of Profitability Through Sophisticated Management of Securities - Assets under management from regional financial institutions exceeds JPY 2.1tn - SBI Asset Management provides customized investment products for each client at extremely low cost, focusing on highly rated and
Slide 93: From Regional to Nationwide
④ Support for Further Evolution of the Regional Financial Institution Business Model as “from Regional to Nationwide” - Through the Sophistication of the Internet and Mobile Channels Nationwide - [Unauthorized reproduction is prohibited] 92
Slide 94: Deposit Account Utilization and Attracting Younger Customers
Improving Deposit Account Utilization and Attracting Younger Customers are Common Issues for All Strategic Capital and Business Alliance Partners Declining trend in number of active accounts, new accounts opened, and accounts held by customers below age 40 < Number of active accounts > < Number of n
Slide 95: Shimane Bank Nationwide Customer Initiatives
Initiatives to Expand Customer Base Nationwide at Shimane Bank – Newly set up “Shimaho!” smartphone branches – Along with social issues of reduced birthrate and population decline, as society becomes more digital, consumption spending shifting to online hence leaving the prefecture with shrinking
Slide 96: Internet Banking System for Individuals
Began Offering Internet Banking System for Individuals -System operating at Shimane Bank, starting from May 23, 2022 as the first user- • As part of the “from regional to nationwide” initiatives to support the nationwide rollout by regional financial institutions, started provision of an online bank
Slide 97: Next Step toward Realizing Regional Revitalization
(2) The Next Step toward Realizing Regional Revitalization - Promote various measures beyond the framework of financial institutions, with Regional Revitalization Partners at the core, to revitalize local economies - ① Two Major Projects in the Immediate Future ② Promote Medium- to Long-term Support
Slide 98: Revitalization of Four Economic Entities
Revitalization of Four Economic Entities; Regional Financial Institutions, Local Residents, Local Industries, and Local Governments is Essential to Realize Regional Development <Local economic activities> Increased consumption Local Job creation Local Industry Residents (SMEs, sole proprietors) Deve
Slide 99: Regional Revitalization Partners and Two Affiliated Companies
Activities by Regional Revitalization Partners and Two Affiliated Companies Began in Earnest after Prolonged COVID-19 Pandemic Regional Revitalization Partners One director from each investment partner will be accepted to manage the business democratically as a kind of public property Formulate poli
Slide 100: Promotion Structure for Regional Development Strategies
Promotion Structure for Regional Development Strategies with Regional Revitalization Partners at the Core Raise capital by forming a fund (anonymous 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 h
Slide 101: Two Major Projects in the Immediate Future
① Two Major Projects in the Immediate Future (i) Involvement of local businesses and local governments to solve problems such as the regional environment and high electricity prices (ii) Initiative to Revitalize the Local Economy with “Michi-no Eki” (Roadside Station) at the Core [Unauthorized repro
Slide 102: Solving Regional Environment and Electricity Price Problems
(i) Involvement of Local Businesses and Local Governments to Solve Problems such as the Regional Environment and High Electricity Prices The NECRES new energy creation system, in which ERI holds the intellectual property rights (patents, etc.), can produce biomass-derived fuel from municipal waste
Slide 103: NECRES Contracts and Referrals
(i) Involvement of Local Businesses and Local Governments to Solve Problems such as the Regional Environment and High Electricity Prices Local municipalities, together with private businesses, have an extraordinarily high interest in NECRES, where many contracts have been completed, and works have a
Slide 104: Rejuvenation of Local Economies Around Roadside Stations
(ii) Initiatives toward Rejuvenation of Local Economies Centered on Roadside Stations SBI Regional Revitalization Services and SBI Group plan to collaborate with regional governments and operating businesses through roadside stations expanding across Japan. They will push forward on regional rejuv
Slide 105: Charging Infrastructure and NECRES at Roadside Stations
Promote Installation of Charging Infrastructure and Using NECRES to Build Power Plants at Roadside Stations and Public Facilities throughout Japan Studying the design of roadside stations equipped with disaster prevention functions in cooperation with investee companies and external partner compan
Slide 106: Osaka Dojima Exchange Emissions Trading
Osaka Dojima Exchange, Fully Supported by SBI Group, Endeavors to Become a Comprehensive Exchange and Considering to Enter into the Emissions Trading Field Osaka Dojima Exchange SBI Holdings: 14.57% Japannext: 19.42% Capital: Various other domestic and international brokers and traders As an excha
Slide 107: Medium- to Long-term Support for Local SMEs
② Promote Medium- to Long-term Support for Local SMEs by Involving Each Economic Entity in the Region (i) The Government’s Stance on Supporting SMEs (ii) Supporting SMEs in Terms of Capital through SBI Investment’s Joint Fund (iii) New Project for Revitalization of Local SMEs through Collaboration o
Slide 108: Government's Stance on Supporting SMEs (a)
(i) The Government’s Stance on Supporting SMEs (a) Small and Medium Enterprise Policy‐Council of the Small and Medium Enterprise Agency (released an “Interim Summary” on June 6, 2022) has set “revitalization of equity finance utilization” by SMEs as a mid- to long-term goal. Direction of medium- and
Slide 109: Government's Stance on Supporting SMEs (b)
（i） The Government’s Stance on Supporting SMEs (b) The FSA intends to exempt the application of risk weight of unlisted stocks held through specialized investment subsidiaries under new capital adequacy regulations to be introduced for domestic financial institutions The 400% risk weight is not unif
Slide 110: Capital Support for SMEs Using SBI Investment Joint Fund
(ii) Capital Support for Small to Medium Enterprises Utilizing SBI Investment’s Joint Fund [Unauthorized reproduction is prohibited] 109
Slide 111: SBI Regional Business Succession Fund
Established the SBI Regional Business Succession Fund to Support Business Succession Throughout Japan and Move Aggressively on Business Activities From the initial fund (JPY 10.9bn, fully invested), acquired of 13 companies in Osaka, Chiba, Shizuoka, Tokushima, and Hokkaido with seven companies re
Slide 112: Supporting Growth of Local Companies via Joint Funds
Supporting Growth of Local Companies Through Joint Fund Management Tsukuba SBI Regional Revitalization Fund (Established in July 2021) [Tsukuba Bank, Ltd.] As a Science City, Tsukaba City has a business area with largest concentration of start-ups in Japan and commercializes and supports the develop
Slide 113: New Project for Revitalization of Local SMEs
(iii) New Project for Revitalization of Local SMEs through Collaboration of SBI Regional Revitalization Investment and Loan and SBI Regional Revitalization Services a. Support for small and medium-sized sake brewers nationwide b. Various measures in cooperation with local companies and local governm
Slide 114: Support for sake brewers nationwide
a. Support for small and medium-sized sake brewers nationwide [Unauthorized reproduction is prohibited] 113
Slide 115: Revitalization of Local Businesses: Sake Breweries
Revitalization of Local Businesses Using SBI Regional Revitalization Investment and Loan and SBI Regional Revitalization Services Sake is “the region itself,” filled with various essences of a region’s history, rice, water, etc. [SBI Regional Revitalization Investment and Loan] There are many small
Slide 116: Blockchain Distribution Support by SBI Traceability
Possible to Support Distribution Using Blockchain Technology Owned by SBI Traceability - Using Blockchain Technology and IC Tag Technology to Protect the Distribution of Authentic Japanese Products in Foreign Countries - Through digital pairing that combines blockchain technology and SATO’s IC tag
Slide 117: Measures with local companies and governments
b. Various measures in cooperation with local companies and local governments [Unauthorized reproduction is prohibited] 116
Slide 118: Example 1: Izumo Attractive Regional Development
Example 1: Promoting Regional Development and Local Economic Revitalization through Land Development and Building Construction through the Alliance with BALNIBARBI Co., Ltd. Izumo Attractive [THE SHIMANE BANK] Izumo Attractive, jointly established with SBI Holdings, THE SHIMANE BANK, and local compa
Slide 119: Example 2: Community Currency Business
Example 2: Nationwide expansion of community currency business initiatives promoted jointly with local governments and regional economic organizations Platform development & management: Machi no Wa （Joint venture investments from SBI Holdings, THE CHIKUHO BANK, and 44 Areas in Japan Kyushu Electric
Slide 120: Example 3: Corporate Furusato Taxation
Example 3: Promote “Corporate Furusato Taxation” in Partnership with RCG Corporation - Promoting the use of “Corporate Furusato Taxation” to provide tax benefits to companies that donate to local development projects - Benefits for tax-paying companies Enjoy benefits while contributing ・Tax deductio
Slide 121: Neo-securities Initiative During 1H FY2023
3. Status of SBI SECURITIES’ efforts to implement Neo-securities initiative during 1H FY2023 (1) Neo-securities initiative in SBI SECURITIES has steadily progressed toward its realization during 1H FY2023 (2) Favorable situation for the implementation of Neo-securities initiative is led by successfu
Slide 122: Neo-securities Initiative Progress
(1) Neo-securities initiative in SBI SECURITIES has steadily progressed toward its realization during 1H FY2023 - Further decrease the ratio of domestic stock brokerage commissions as revenue from online trading - ① Strengthen the real estate finance business ② Expand non-flow businesses ③ Increase
Slide 123: Strengthen Real Estate Finance Business (1)
① Strengthen the real estate finance business Strengthen the Real Estate Finance Business ① - SBI MONEYPLAZA Enhances Sales of Real Estate Small-lot Beneficiary Interests - • SBI MONEYPLAZA has been handling real estate small-lot beneficiary interests since 2020 and has sold JPY 18,270m in ten proje
Slide 124: Strengthen Real Estate Finance Business (2)
① Strengthen the real estate finance business Strengthen the Real Estate Finance Business ② - Expanding aspects of real estate development for fund raising - • In Sept. 2022, acquired shares of THE GLOBAL Corp. (51.95% of voting rights), which operates a condominium business for sale and an income-p
Slide 125: Strengthen Real Estate Finance Business (3)
① Strengthen the real estate finance business Strengthen the Real Estate Finance Business ③ - Strengthen real estate asset management - • In June 2021, acquire shares of Tozai Asset Management Co., Ltd. which operates asset management business, and begin full-scale expansion of real estate asset man
Slide 126: Increase Investment Trust Balance
② Expand non-flow businesses Further Increase the Balance of Investment Trusts through Purchases Using Shared Points and Accumulation Services Utilizing Credit Cards (JPY billion) Investment Trust Balance* (JPY million) Investment Trust Fees 6,000 5,826 +13.4% 4,041 Achieved a record high 4,000 5,00
Slide 127: Investment Trust Accumulation via Sumitomo Mitsui Card
② Expand non-flow businesses Steadily Expanding Investment Trust Accumulation Service Using Credit Card through Tie-up with Sumitomo Mitsui Card • From June 30, 2021, SBI SECURITIES and Sumitomo Mitsui Card (SMCC) launched the “Sumitomo Mitsui Card Funded Investment” service, which purchases investm
Slide 128: Fully Automated AI Investment SBI Wrap
② Expand non-flow businesses Fully Automated AI Investment “SBI Wrap” is a Major Favorite - Applied amount exceeded JPY 20 billion in just seven months since the service launched- • In Aug. 2021, SBI Group acquired shares of FOLIO Holdings, Inc. the parent company of FOLIO Corporation, which provide
Slide 129: Trading Revenue Becomes a Pillar via FX Business
③Increase of trading revenue Trading Revenue Becomes One of the Pillars of Revenue by Strengthening of FX Business (JPY million) FX-related revenue Crypto-asset related revenue others (foreign currency bonds related revenue etc.) 30,000 -0.1% 24,605 24,263 YoY 24,250 25,000 20,000 14,918 15,000 12,5
Slide 130: Largest FX Accounts and Customer Margin Deposits
③Increase of trading revenue The SBI Group (SBI SECURITIES, SBI FXTRADE and SBI Sumishin Net Bank, SBI NEOMOBILE SECURITIES) has the Largest Total Number of Accounts and Customer Margin Deposits in the Industry Changes in the number of accounts among Customer Margin Deposits of 5 major FX Trading Re
Slide 131: SBI SECURITIES' FX Revenue vs Online Securities Companies
③Increase of trading revenue SBI SECURITIES’ FX Revenue Exceed the Total Revenues of Each Online Securities Companies Quarterly Trends of SBI SECURITIES’ FX Revenue and Total Trading Revenues of Each Online Securities Companies 18.1% (JPY million) YoY (Apr. 2021 – Sept. 2022) 14,000 12,000 SBI SECUR
Slide 132: Foreign Stock Trading Value and Revenue
④ Expansion of foreign stock services Trend of SBI SECURITIES’ Foreign Stock Trading Value and Revenue Foreign Stock Trading Volume Revenue * Foreign stock trading value index for 1H FY2018 = 1.0 6.8 5.8 1.0 1H 1H 1H 1H 1H FY2018 FY2019 FY2020 FY2021 FY2022 • Trading Value and Revenue of foreign sto
Slide 133: 100% Underwriting Involvement; POs and Bonds Expansion
⑤ Strengthen wholesale business SBI SECURITIES Achieves 100% Underwriting Involvement; Steady Expansion of POs and Corporate Bonds Underwriting Underwriting share of 100% is an • Between Apr. 2022 through Sept. 2022, SBI SECURITIES underwrote for 3 companies industry-leading figure as lead manager I
Slide 134: Composition of Operating Revenue of SBI SECURITIES
Trends in the Composition of Operating Revenue (Net Sales) of SBI SECURITIES - Decreased the ratio of domestic stock brokerage commissions from online trading, which is subject to the commission-free system, to 12.3% of operating revenues- Commissions Financial revenues Underwriting/ Sales commissio
Slide 135: Dominant Position in the Industry
(2) Favorable situation for the implementation of Neo- securities initiative is led by successfully establishing a dominant position in the industry through the customer-centric principle and diversification of revenue sources ① Comparison of operating income with major securities companies ② Compar
Slide 136: Operating Income vs Major Securities Companies
① Comparison of operating income with major securities companies Comparison of Operating Income with Major Securities Companies for 1H FY2022 - SBI SECURITIES’ operating income surpasses a those of major securities companies - (Unit: JPY million) YoY % 1H FY2021 1H FY2022 (Apr. 2021 – Sept. 2021) (A
Slide 137: Comparison with Online and Mid-tier Securities
② Comparison of performance with online and mid-tier securities firms Comparison of 1H FY2022 Financial between Online Securities, Second-tier and Mid-tier Securities (Unit: JPY billion) Net Operating Ordinary Net Income Revenue Income SBI SECURITIES (consolidated) 74.8 26.3 17.3 Online securities R
Slide 138: Share of Individual Stock Trading Value Exceeds 45%
③ SBI Group’s share of individual stock trading value SBI Group’s Share of Individual Stock Trading Value Exceeds 45% and Further Expanding Share of Individual Stock (of which) Share of Individual Trading Value (%) Margin Trading Value (%) SBI SBI 45.6 46.4 (of which, SBI (of which, SBI Neotrade Neo
Slide 139: Largest Number of Accounts in the Industry
④ Number of securities accounts of SBI Group SBI Group Has the Largest Number of Accounts in the Industry Trend of the Number of Accounts of SBI Group and CAGR:% Major Face-to-face Securities Companies (Mar. 2009 – (Mar. 2009 – Sept. 2022) 9,187 Sept. 2022) (Thousand accounts) 8,500 12.5 7,500 SBI *
Slide 140: Customer Base of Just Under 44 Million
⑤ Groupwide growth expected from Neo-securities Initiatives The SBI Group Has a Customer Base of Just Under 44 Million Breakdown of the Customer Base (thousand) (As of the end of September 2022)*1,2 (thousand) SBI SECURITIE 46,000 SBI NEOMOBILE SECURITIES No. of accounts) 9,187 43,863 SBI Neotrade S
Slide 141: Neo-securities Initiatives Expand Group Customer Base
⑤ Groupwide growth expected from Neo-securities Initiatives Neo-securities Initiatives Contributes to SBI SECURITIES’ Expansion of Online Domestic Stock Trading Business, Besides Expanding the Customer Base of the Whole Group Opened an account at SBI SECURITIES and participated in Individual investm
Slide 142: Group Focus on NISA and iDeCo
(3) Whole SBI Group focus on NISA and iDeCo as strategic products ① The Japanese government plans to expand the system according to their “Asset Income Doubling Plan” ② SBI Group has strategically focused on the NISA ③ Initiated iDeCo initiatives from early stage ④ SBI SECURITIES is the Industry Lea
Slide 143: Government Enhances NISA and iDeCo Plans
① The Japanese government plans to expand the system according to their “Asset Income Doubling Plan” Government Enhances and Reforms the NISA and iDeCo Plans under the Asset Income Doubling Plan • Japan’s Financial Services Agency (FSA) announced its desired revisions to the tax-deferred NISA plan f
Slide 144: Focus on NISA Initiatives
② SBI Group has strategically focused on the NISA SBI SECURITIES has Focused on NISA Initiatives as an Important Strategic Field (thousand Number of NISA accounts NISA’s customer attribute of accounts) (Sept. 2015 – Sept. 2022) SBI SECURITIES (%) 3,500 Existing 3,000 customers 20.2 Number of new 3,0
Slide 145: SBI Benefit Systems iDeCo Initiatives
③ Initiated iDeCo initiatives from early stage SBI Benefit Systems initiated iDeCo initiatives from Early Stage and Steadily Increasing the Number of Subscribers The SBI Group focused on the Individual Defined Contribution (iDeCo) pension business through SBI Benefit Systems (est. 2001), well before
Slide 146: Industry Leader in iDeCo Customers
④ SBI SECURITIES is the Industry Leader in the Cumulative Number of iDeCo SBI SECURITIES is the Industry Leader in the Cumulative Number of Individual Defined Contribution Plan (iDeCo) Customers (thousand customers) Cumulated number of customers (subscribers & transfers*) of iDeCo by planning admini
Slide 147: Continue to Lead Change in Securities Industry
(4) SBI Group continues to lead the further change in the securities industry - Full-scale efforts to loosen the regulations to revitalize PTS (Proprietary Trading System) in Japan and to popularize next-generation financial products including Security Token (STs) - [Unauthorized reproduction is pro
Slide 148: MOU with Cboe Global Markets
Concluded a Memorandum of Understanding with Cboe Global Markets • SBI Holdings and Cboe Global Markets (Cboe) in U.S. signed MOU in Oct. 2022 • Cboe is one of the three largest exchanges in U.S., a global leading provider of market infrastructure and various products traded in the market. Entered t
Slide 149: Osaka Digital Exchange Security Token Market
Osaka Digital Exchange (ODX) is Making Steady Progress to Establish a Secondary Market for Security Token, a Next- generation Financial Product while Operating the Equity PTS Osaka Digital Exchange SBI Group: 70% Sumitomo Mitsui Financial Group: 20% Nomura Holdings: 5% Daiwa Securities Group: 5% O
Slide 150: Multifaceted Support for ST Market
SBI Group Provides Multifaceted Support for Establishment of ST Market Contributing to institutional development through establishing and participating self-regulatory organization and industry organization Japan STO Association ST Research Consortium Japan STO Association, a self-regulatory Contrib
Slide 151: Increase Assets Under Management of the Group
4. Actively seek to increase the balance of assets under management of the group in Japan and overseas based on the business’s trends, such as falling asset prices and government policies (1) In the Investment Business, the Company regards the fall in asset prices as an opportunity to actively devel
Slide 152: Investment Business Opportunities in Asset Price Fall
(1) In the Investment Business, the Company regards the fall in asset prices as an opportunity to actively develop investments by pursuing synergies within and outside the Group, to expand development areas overseas, and to focus on future growth areas ① Actively invest in companies in Japan and ove
Slide 153: Actively invest in companies with synergies
① Actively invest in companies in Japan and overseas that can be expected to have synergies within the Group and with the businesses of alliance partners [Unauthorized reproduction is prohibited] 152
Slide 154: Basic Strategy for Venture Investment
After Quickly Incorporating New Technology of the Investee Within the Group, It Could Be Further Disseminated Inside and Outside the Group in the Three Processes of SBI Group’s Basic Strategy for Venture Investment Structures within SBI Group SBI Holdings and SBI Investment centered on private equit
Slide 155: New Fund for Digital Space
② Plans to establish a new fund to invest mainly in the Digital Space field, which is expected to grow in the future [Unauthorized reproduction is prohibited] 154
Slide 156: SBI Digital Space Fund
A New Fund With a Size of JPY 100 Billion, Commonly Known as “SBI Digital Space Fund,” will be Established in the Next Fiscal Year to Invest in Cutting-Edge Services and Technologies Centered on Digital Space Society 5.0 for SDGs (Sustainable Development Goals) Digital Space Web3.0 FinTech Metaverse
Slide 157: Overseas investment via global alliances
③ As for overseas investment, it is scheduled to utilize global alliances to expand investment in South Asia, the Middle East, and Africa, where the Group has yet to sufficiently covered [Unauthorized reproduction is prohibited] 156
Slide 158: JV Fund with SC Ventures
Considering Establishing a JV Fund with SC Ventures, an Alliance Partner Covering South Asia, the Middle East, and Africa Details of Business Cooperation (Announced May 6, 2022) In southeast Asia and South Asia, we consider investing in both group companies and promoting collaboration with existin
Slide 159: Supporting Innovation Through CVC Funds
④ Supporting the Innovation of Business Corporations in Alliances Through CVC Funds [Unauthorized reproduction is prohibited] 158
Slide 160: CVC Funds Managed by SBI Investment
Strengthening the Businesses of Business Alliances Through CVC Funds Managed by SBI Investment - Total committed amount of CVC funds, one of the largest funds*, JPY 5bn exceeded JPY 118bn in Japan - JPY 8bn JPY approximately 5bn (JPY billion) Total commitment amount 110 JPY 5bn Over JPY 118bn [SUMIT
Slide 161: Two New CVC Funds in Second Quarter
Co-founded Two New CVC Funds in the Second Quarter of FY2022 PC-SBI Investment Limited Partnership • Fund size: JPY 8 billion • From July 2022 Panasonic Corporation • Investment areas: 1. Well-being field, 2. Decarbonization/ resource saving/energy field, 3. Food infrastructure field, 4. Spatial inf
Slide 162: From Savings to Investing: Asset Management Growth
(2) Capturing the government’s current trend of “from savings to investing” and further expand assets under management through organic growth and M&A in the Asset Management Business ① Strengthening efforts in both enhancement of publicly offered investment trusts for individual investors and privat
Slide 163: Public and Private Investment Trust Efforts
① Strengthening efforts in both enhancement of publicly offered investment trusts for individual investors and private investment trusts to support securities management for corporate clients, mainly regional financial institutions (i) Publicly offered investment trusts are steadily expanding in res
Slide 164: Promotion of From Savings to Investment
(i) Publicly offered investment trusts are steadily expanding in response to the trend of government’s “from savings to investment” The Promotion of “From Savings to Investment,” in Which Cash and Deposits, Accounting for the Majority of Japan’s Household Financial Assets, Are Being Shifted to Inves
Slide 165: Asset Management Business and Doubling Asset-Based Income Plan
(i) Publicly offered investment trusts are steadily expanding in response to the trend of government’s “from savings to investment” Expansion of SBI Group’s Asset Management Business which is in line with the government’s goal of “From Savings to Investment” and “Doubling Asset-Based Income Plan” Th
Slide 166: SBI Asset Management Increases AUM
(i) Publicly offered investment trusts are steadily expanding in response to the trend of government’s “from savings to investment” SBI Asset Management Continues to Steadily Increase Assets Under Management Due to Stable Net Inflows Into Publicly Offered Investment Trusts - Ensure stable net inflow
Slide 167: Privately Placed Investment Trusts Balance
(ii) SBI Asset Management’s Balance of Privately Placed Investment Trusts Also Expanded Steadily on the Back of Entrustment of Assets of Shinsei Bank and Regional Financial Institutions While the overall balance of privately placed investment trusts in the investment trust industry declined, SBI Ass
Slide 168: Utilize M&A to Expand AUM Over JPY 10 Trillion
② Proactively utilize M&A and other opportunities to achieve SBI Group’s goal of expanding assets under management to over JPY 10 trillion [Unauthorized reproduction is prohibited] 167
Slide 169: Acquire Shares of Okasan Asset Management
Agreement with OKASAN SECURITIES GROUP to acquire shares of Okasan Asset Management Co., Ltd. by Underwriting a Third-party Allotment of New Shares Plans to underwrite a third-party allotment of new shares by Okasan Asset Management (November 30, SBI Group 2022 (tentative)) OKASAN SECURITIES GROUP I
Slide 170: Group Assets Under Management Expansion
SBI Group sustainably expands assets under management through organic growth and effective use of M&A - Balance exceeds JPY 6.3 trillion at the end of September 2022 - (JPY billion) ・Began managing Shinsei Bank’s own accounts from July 2022 Balance as of September 30, 2022: Approx. JPY 50bn 8,000 ・P
Slide 171: Platformer in the Digital Space Domain
5. SBI Group endeavors to be a platformer in the digital space domain and is developing the following diverse initiatives (1) Corda has been selected for new equity settlement system platform launched by DTCC in U.S. (2) Participated in MAS's Project Guardian as a founding member with JP Morgan, DBS
Slide 172: Corda Selected for DTCC Settlement Platform
(1) Corda has been Selected for New Equity Settlement System Platform Launched by DTCC in the U.S. The Depository Trust & Clearing Corporation (DTCC) in U.S. which is one of the largest securities clearing and custody institutions in the world with a history of more than 45 years and provides transa
Slide 173: Project Guardian Founding Member
(2) Participated in MAS’s Project Guardian as a Founding Member with JP Morgan, DBS Bank, etc. Project Guardian, an asset tokenization initiative led by the Monetary Authority of Singapore (MAS), is a project to study the feasibility of asset tokenization and DeFi (decentralized finance) to improve
Slide 174: Digital Asset Business in Singapore with Global Partners
(3) SBI Group Accelerates the Development of Digital Asset Related Business Based in Singapore Under an Alliance with Global Partners SCB10X is a subsidiary of Siam Commercial A member of the SIX Group, which operates Bank, one of Thailand's leading banks, the SIX Swiss Exchange, one of the world’s
Slide 175: SHIMENAWA Traceability at Dusseldorf Evening
(4) Offering the Traceability Service “SHIMENAWA” at the Japan-Germany Networking Event “Dusseldorf Evening” The “Dusseldorf Evening” is one of the most important German-Japanese networking events in Japan, with more than 1,000 participants from Japanese companies based in Dusseldorf and North Rhine
Slide 176: SBI Web3 Wallet
(5) SBI VC Trade Plans to Release SBI Web3 Wallet, Japan’s First Custodial Wallet that Supports NFTs [Current issues with the NFT market] X Effort required for users to create and manage their own wallets and send digital assets X To participate in NFT business, businesses must own digital assets, w
Slide 177: TOKEN CONNECT NFT Marketplace
(6) TOKEN CONNECT, which Provides NFT Marketplace Functionality for Content Providers, Scheduled to Start in Late Jan. 2023 • Service provides expertise cultivated at SBINFT related to a variety of NFTs as a platform • Lowering the barriers to entry into the NFT business to expand the potential of W
Slide 178: Capital and Business Alliance with JUNGLE X
(7) Concluded a Basic Agreement for Capital and Business Alliance with JUNGLE X to Promote Development of New Business in the Web 3.0 Field Planning to invest in JUNGLE X, which has various business model patents mainly using blockchain technology and to establish a joint venture in Singapore, and d
Slide 179: Reference Material
< Reference Material > [Unauthorized reproduction is prohibited] 178
Slide 180: Average Daily Individual Brokerage Trading Value
1. SBI SECURITIES Average Daily Individual Brokerage Trading Value (Total for two markets*) Average daily individual brokerage trading value (left-side scale) End-of-month Nikkei Average (right-side scale) (JPY) (JPY billion) 1H FY2021 2,500 Individual Brokerage 1H FY2022 30,000 trading value Indivi
Slide 181: SBI SECURITIES Operating Revenue Structure for 1H FY2022
1. SBI SECURITIES SBI SECURITIES’ Consolidated Operating Revenue (Net Sales) Structure for 1H FY2022 (JPY million) 82,027 80,839 90,000 34 23 Others 21,458 21,027 Financial revenues 60,000 24,263 24,250 Trading revenue Other commission 30,000 12,703 14,477 received 3,955 1,652 Underwriting / Offerin
Slide 182: Brokerage Commission Income Decreased Despite Higher Trading Value
1. SBI SECURITIES Brokerage Commission Income Decreased due to Phased Implementation of Neo-securities Initiative, Despite a Steady Increase in Brokerage Trading Value Domestic Stock Brokerage Trading Value Commissions* (JPY million) (JPY trillion) 81.4 80 +9.4% -1.0% 74.4 YoY 19,612 20,000 YoY 19,4
Slide 183: Open Interest Credit Balance and Financial Revenue
1. SBI SECURITIES Open Interest Credit Balance and Financial Revenue at SBI SECURITIES Remained High Trend of Open Interest Credit Balance Financial Revenue (JPY billion) (End of quarter) (JPY million) 1,273 1,294 24,000 -2.0% 21,458 YoY 21,027 21,000 939 18,000 781 15,000 12,000 9,000 6,000 3,000 0
Slide 184: SBI Sumishin Net Bank Housing Loan Balance
2. SBI Sumishin Net Bank Accelerating the Expansion of Housing Loan Products Volume with Attractive Interest Rates and High Customer Benefits Change in Balance of Housing Loans (End of Mar. 2008 – End of Sept. 2022) *1 Repayments deducted from cumulative total of new loans. Includes housing loans ex
Slide 185: Assets Under Management of the SBI Group
3. Investment business Assets Under Management of the SBI Group (As of the end of September 2022) Private equity, etc. JPY743.7bn （*1） Excluding JPY 204.9 bn of both cash and commitment amount to be paid in)(*2) Breakdown of operating investment Amount Breakdown of operating Amount securities by Ind
Slide 186: Crypto-asset Business Related to FTX Bankruptcy
4. Crypto-asset business Status of SBI Group’s Crypto-asset Business Related to FTX, Which Filed for U.S. Bankruptcy Protection SBI VC Trade • No transactions with FTX or companies related to FTX • No impact on clients’ assets in custody, etc. BITPoint Japan • Majority of funds, including digital as
Slide 187: Number of Companies and Employees of the SBI Group
5. Group overview Number of Companies and Employees of the SBI Group (Consolidated) Number of Group companies End of Mar. 2022 End of Sept. 2022 Consolidated subsidiaries (companies) 442 482 Consolidated partnerships (partnerships) 51 56 Total consolidated subsidiaries (companies) 493 538 Equity met
Slide 188: SBI Group's Shareholder Composition
5. Group overview SBI Group’s Shareholder Composition (As of the end of September 2022) Total number of shareholders is 181,642、of which the number of shareholders who hold one unit or more is 103,789 *1 Shareholding ratio of domestic and foreign institutional investors is 63% （％） Transition of
Slide 189: https://www.sbigroup.co.jp
https://www.sbigroup.co.jp [Unauthorized reproduction is prohibited] 188
Sbi Holdings Inc Ord — H1 FY2022 Earnings Presentation on 6ix