Japan Securities Finance Co., Ltd. · TSE:8511
Japan Securities Finance — Q1 FY2012 Earnings Presentation
27 slides from Japan Securities Finance's earnings presentation, April 2012
Slide 1: Financial Presentation for 1Q, FY2012
Financial Presentation for 1Q, FY2012 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 FY2012, 1Q
Financial Summary FY2012, 1Q ¥ mil Parent Consolidated FY2011 FY2012 Change FY2011 FY2012 Change 1Q 1Q 1Q 1Q Operating ▲227 ▲1,954 3,889 3,661 (▲5.9%) 6,350 4,395 (▲30.8%) Revenues EX Premium ▲135 ▲1,862 Charges 3,351 3,216 5,812 3,949 (▲4.0%) (▲32.0%) Operating Expenses 2,075 1,607 ▲468 2,587 1,825
Slide 4: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Jun-11 Jun-12 Securities Finance Bussiness 3,861 3,646 【Margin Loan】 【Margin Loan】 Margin Loan Business 1,443 1,213 ・Interest ・Interest on on Loans Loans and and Fees Fees on on Lending Lending Securities Securities (22.7%) (27.6%) decreased decreased due du
Slide 5: Financial Highlights for FY2012, 1Q
Financial Highlights for FY2012, 1Q 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 Stock Loan and Stock 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 Margin Loans(left) Stock Loans(left) Margin Loan Rate(right) \tri 0.5 2.5% FY2011 (Result) FY2012 1Q (Result) Margin Loan: \218 bn Margin Loan: \222bn Stock Loan : \184 bn Stock Loan : \ 151bn 0.4 2.0% FY2012 Precondition Margin Loan: \250 bn
Slide 7: Outstanding Balance of Standardized Margin Transactions
Outstanding Balance of Standardized Margin Transactions \ tri Standardized Margin Buying Transactions (left) \ Standardized Margin Selling Transactions (left) 1.8 Nikkei225(right) 12,000 Selling, Bottom 1.6 Buying, Bottom May-12 Mar-09 1.4 \684bn \241bn 1.2 10,000 1.0 0.8 0.6 8,000 0.4 0.2 0.0 6,000
Slide 8: Financial Results of Group Companies
Financial Results of Group Companies \ mil FY2012, 1Q Results Shareholding Ratio Operating Recurring Net Revenues* Income Income Consolidated 4,395 1,003 725 JSF - 3,661 767 530 JSF Trust Bank 100% 640 194 193 Nihon Building 100% 289 114 75 Equity-method - Gain in Equity-Method 32 * Figure of JSF Tr
Slide 9: Financial Results for JSF Trust Bank
Financial Results for JSF Trust Bank ¥mil FY2011 FY2012 change 1Q 1Q Recurring Revenues 2,345 640 ▲1,704 Trust charges 76 75 ▲1 Recurring Income 1,600 194 ▲1,405 Net Income 1,599 193 ▲ 1,406 Equity Ratio 28.25％ 34.39％ Financial Financial Highlights Highlights for for FY2012, FY2012, 1Q 1Q Revenue
Slide 10: Main Assets of JSF Trust Bank
Main Assets of JSF Trust Bank ● Securities Holdings \mil ● Ratio of Securities(as of Jun-12) Sep-11 Mar-12 Jun-12 Notes 0% JGB 488,822 407,669 358,839 JGB 1year or less 1year or less 428,939 327,732 278,903 32% over 1Y 59,882 79,937 79,936 JGB over 1Y 37% Municipal Bond 187,486 158,248 152,523 Mainl
Slide 11: Estimated Figures for FY2012
Estimated Figures for FY2012 ¥mil Parent Consolidated FY2012 FY2012 FY2012 FY2012 FY2012 FY2012 1Q Results 1Q-2Q 1Q-4Q 1Q Results 1Q-2Q 1Q-4Q Operating 500 700 1,000 1,400 588 887 Profit （+100） （▲400） （+300） （ ▲300） Recurring 700 900 1,100 1,700 767 1,003 Income （+100） （▲500） （+300） （ ▲400） 500 600
Slide 12: Precondition Balance of Margin Loans
Precondition Balance of Margin Loans FY2012,1Q Results FY2012 Precondition Excess of Excess of Margin Loan Excess Margin Loan Excess of ¥130bn of Stock Loan Stock Loan ¥140bn ¥58bn ¥80bn Matching Matching ¥92bn ¥110bn Margin Loan Stock Loan Margin Loan Stock Loan ¥222bn ¥151bn ¥250bn ¥190bn FY2011 R
Slide 13: Consolidated Estimated Figures
Consolidated Estimated Figures \ mil FY2012, 1Q Results FY2012 Estimated Figures Shareholding Ratio Operating Recurring Net Operating Recurring Net Income Income Income Income Income Income Consolidated 887 1,003 725 1,400 1,700 1,200 JSF － 588 767 530 700 900 600 JSF Trust Bank 100% - 194 193 － 300
Slide 14: Appendix
a Appendix
Slide 15: 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. FY2012 Forecast：Annual ¥14（Interim ¥7, year-end ¥7） FY FY FY FY FY FY 2007 2008 2009 2010 2011 2012 Annual Dividend per share ¥
Slide 16: Operating Revenues by Each Business
Operating Revenues by Each Business \ mil Mar-08 Mar-09 Mar-10 Mar-11 Jun-11 Mar-12 Jun-12 Securities Finance Bussiness 38,619 34,427 20,817 17,558 3,861 15,186 3,646 Margin Loan Business 23,156 19,638 12,954 8,922 1,443 6,756 1,213 (45.8%) (44.3%) (46.5%) (39.0%) (22.7%) (33.4%) (27.6%) Interest on
Slide 17: Avg. & Outstanding Loan Balance
Avg. & Outstanding Loan Balance \ mil FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 1Q 1Q avg. 336,324 324,205 293,429 256,490 218,059 222,782 Margin Loans term-end 244,306 328,755 305,083 260,246 241,035 246,191 Bond Financing & General avg. 51,887 46,863 45,850 38,750 50,893 49,997 Loans term-end 53,1
Slide 18: Margin Buying Transactions & JSF Margin Loans
Margin Buying Transactions & JSF Margin Loans \ tri 9 90% Margin Buying Balance 8 Margin Loan Balance 80% Ratio 7 70% 6 60% 5 50% 4 40% 3 30% 2 20% 1 10% 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 12 Japan Securities Finance Co.,Ltd 18
Slide 19: 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 12 Japan Securities Finance Co.,Ltd 19
Slide 20: Securities Account
Securities Account Jun-12 notes Jun-12 notes Assets Liabilities \mil \mil Collateral Money of Securities Loans 410,197 975,233 Lent Margin Loans 246,191 margin loan Margin Loans 154,530 stock loan Collateral Money of Securities 973,783 Borrowed Excess of Stock Loan 51,385 stock loan Securities Accou
Slide 21: Features of Balance Sheet
Features of Balance Sheet Features of Assets Features of Liabilities (1) Fluctuation of Loan Balance (1) Fluctuation of money funding amount Loan balance moves everyday because margin loan is Need to response flexibly to fluctuating cash demands, over-night loan because of the fluctuation of margin
Slide 22: JGB Balance
JGB Balance \ bn JSF \ mil 3,000 1.5 JSF Sep-11 Mar-12 Jun-12 2,500 (1.19) (1.12) 2,702,225 2,094,731 1,849,923 975 JGB Balance 2,000 1.0 1 year or less 1,727,065 1,318,655 1,092,638 1,500 (.96) 776 757 over 1Y 975,160 776,076 757,284 1,000 0.5 (15Y floating JGB) 156,760 152,747 153,443 1,727 1,319
Slide 23: 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 24: Loan Rate of Loans for Margin Transactions
Loan Rate of Loans for Margin Transactions 10.0% 9.0% 8.75% Loan Rate Interest Rate on Collateral Money of Stock Loan 8.0% Lending Fee 7.0% Profit Margin 6.0% 5.00% 5.0% Sep-93 4.0% 3.75% Nov-10 3.0% Jan-09 2.0% May-02 1.17% 1.0% 0.0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Slide 25: Share Buyback Program
Share Buyback Program total shares start end purchased amount cancellation shares issued shs \ mil shs shs FY2008 2008/4/1 2008/4/18 4,312,800 2,999 99,704,000 2008/5/15 2008/6/11 978,900 999 99,704,000 2008/6/27 2008/7/25 1,000,000 881 99,704,000 2008/9/24 6,004,000 93,700,000 6,291,700 4,881 Numbe
Slide 26: Securities-related Business by JSF Group Companies
Securities-related Business by JSF Group Companies TSE TSE Securities Finance Business Sapporo Sapporo Loansfor forMargin Margin Loans Fukuoka JapanSecurities Japan SecuritiesFinance Finance Transactions Transactions Fukuoka Designated as Loansfor fornegotiable negotiable Loans securitiers margin tr
Slide 27: Notice
Notice This document includes statements for business forecast. These statements don’t guarantee company’s future achievement and that involve risk or uncertain factors. Company’s future achievement may be changed drastically up to stock market or financial conditions. Japan Securities Finance Co.,L
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