Japan Securities Finance : Financial Presentation for FY2022

Japan Securities Finance Co., Ltd.

FY2022

Financial Results Presentation

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～ All For Securities Market ～

Table of Contents

＜Part Ⅰ＞ Overview of Financial Results for FY2022

• １．Executive summary (Consolidated)
• ２．Summary Financial Results for FY2022
• ３．Summary Financial Results for FY2022（JSF parent）
• ４．Financial Highlight（Margin Loan Business）
• ５．Financial Highlight（Securities Financing）
• ６．Financial Highlight（Securities Investment of JSF parent）
• ７．Summary Financial Results for FY2022（ JSF Trust Bank）
• 8．Estimated Figures for FY2022

Ｐ３

Ｐ４

Ｐ５

Ｐ６

Ｐ７

Ｐ８

Ｐ９

Ｐ10

＜Part Ⅱ＞ Our efforts to achieve management with awareness of our cost of capital and stock price

• １．Efforts to achieve management with awareness of our cost of capital and stock price, etc.
• ２．Status of Dialogue with Shareholders
• ３．Shareholder Returns
• (Appendix)

P12

P16

P17

P19～41

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2

１．Executive Summary (Consolidated)

（¥ mil）	FY2022			Highlights
Full Year
	YoY ⊿	⊿％
				 Increased year on year by 1.9% mainly
				thanks to firm earnings from securities
				financing, particularly from bond lending
Operating	6,354	+119	+1.9％	and equity repo transactions.
Income	 Repositioned for future portfolio
				management in response to rising interest
				rates overseas. This resulted in recording
				losses on sales of foreign currency bonds.
Recurring	7,601	+436	+6.1％
Income
Net	5,966	＋792	＋15.3％	 Recorded extraordinary gains on reduction
Income	in retirement benefit liabilities due to
			change in retirement bonus structure.

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２．Summary of Financial Results for FY2022

			Consolidated
	（¥ mil）
		FY2022		YoY.⊿	(%⊿)
			Full Year
Operating Revenues		42,518		12,380	(+41.1%)
	Except		37,806		10,501	(＋38.5%)
	Premium Charges
Operating Expenses		28,765		12,231	(+74.0%)
	Except		24,053		10,325	(＋75.2%)
	Premium Charges
General &		7,398		29	(+0.4%)
Administrative Expenses
Operating Income		6,354		119	(+1.9%)
Recurring Income		7,601		436	(+6.1%)
	Gain or Loss in		523		76	(+17.2%)
	Equity-Method
Extraordinary		671		689	(－)
Profit or Loss
Net Income		5,966		792	(＋15.3%)

Non-consolidated

	JSF		JSF Trust Bank	Nihon Building
			YoY.⊿		YoY.⊿		YoY.⊿
	38,631		12,044	3,364	403	1,197	▲88
	33,919		10,166
	28,268		11,932	748	312	35	9
	23,556		10,027
	5,972		▲31	1,202	61	626	▲39
	4,390		143	1,413	29	536	▲58
	10,274		4,346	1,415	30	651	▲55

	671	689	―	―	―	―
	9,302	4,762	975	▲47	429	▲35

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３．Summary of Financial Results for FY2022

（Non-consolidated）

Japan Securities Finance

（Non-consolidated）

*Excluding premium charge

（¥ mil）	FY2022	YoY.⊿	(%⊿)
Full Year

Operating	33,919	10,166	(+42.8%)
Revenues*
Operating Expenses*	23,556	10,027	(＋74.1%)
Operating Profit	10,363	111	(＋1.1%)
	Margin Loan	3,077	263	(＋9.4%)
	Business*
	Securities Financing	5,850	2,084	(＋55.4%)
	Others	1,434	▲2,236	(△60.9%)
General &
Administrative	5,972	▲31	(△0.5%)
Expenses
Operating Income	4,390	143	(+3.4%)
Recurring Income	10,274	4,346	(＋73.3%)
Extraordinary	671	689	(－)
Profit or Loss
Net Income	9,302	4,762	(＋104.9%)

Key Points

• Operating Revenues
• • Securities financing revenues increased on higher balances for bond lending and equity repo (+42.8%).
• Operating Profit
• • Operating profit increased by ¥111 million YoY to ¥10,363 million (+1.1%). Although based on firm earnings from securities financing, income from Others (mainly securities investment) decreased due to the repositioning of held securities to enable future portfolio management
• General & Administrative Expenses
• • From the perspective of efficient capital allocation within our group companies, dividends paid from two consolidated subsidiaries (up ¥3,952 million YoY). As a result, non- consolidated Net Income increased significantly, but have no impact on consolidated results because of consolidation eliminations.

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