Result Review on 2 nd Qtr of Fiscal 2017 that ends in March October 27, 2017

Transcription

1 Result Review on 2 nd Qtr of Fiscal 217 that ends in March 218 October 27, 217

2 Table of contents Overview of Consolidated Financial Results Financial Summary Total Revenues Commissions Trading Profit and Loss Selling, General and Administrative Expenses Non-operating Income and Expenses, Extraordinary Income and Loss Asset under Custody Performance Indicators Balance Sheet Overview of Tokai Tokyo Securities Financial Summary Total Revenues Selling, General and Administrative Expenses Stock Trading Volume and Amount Foreign Stocks Sales of Foreign Currency Bonds and Structured Bonds Investment Trusts Net Inflow of Cash and Securities (Individuals) Overview by Business Segment Revenues, Number of Accounts, and Asset under Custody Attained by Each Region Capital Adequacy Ratio (Reference) Takagi Securities 1

3 Overview of Consolidated Financial Results

4 Financial Summary (Consolidated) Apr. - Jun. '15 Jul. - Sep. '15 Oct. - Dec. '15 Jan. - Mar. '16 Apr. - Jun. '16 Jul. - Sep. '16 Oct. - Dec. '16 Jan. - Mar. '17 Apr. - Jun. '17 Jul. - Sep. '17 1Q FY217 2Q FY216 Total Revenues 2,72 15,918 16,467 14,496 14,642 13,912 17,79 19,67 19,581 2, SG&A Expenses 14,597 12,991 13,62 12,982 13,19 12,921 13,521 14,596 15,717 16, (Total Revenues = 1) Operating Income 5,797 2,65 2,997 1,196 1, ,779 3,942 3,24 3, Non-operating Income , , Non-operating expenses Ordinary Income 6,625 3,436 3,493 1,742 1,512 2,496 4,354 4,96 4,15 4, (Total Revenues = 1) Extraordinary Income , , Extraordinary Loss Income Before Tax 7,388 4,92 4,252 2,191 2,88 3,831 4,442 5,832 15, 4, (Total Revenues = 1) Income Tax - Current & Deferred 2,11 1,4 1, ,54 1,544 1,738 1, Profit Attributable to Owners of Parent 5,155 2,7 2,793 1,773 1,455 2,973 3,262 4,299 13,248 3, (Total Revenues) , 2, 15, 1, 5, [Quarter on Quarter] Total Revenues: 2,249 Mill., up 3% from the preceding quarter (QoQ) Profit attributable to owners of parent: 3,814 Mill., down 71% QoQ Recorded positive Ordinary Income consecutively for 28 quarters [Year on Year] Total Revenues: up 46% from the preceding fiscal year (YoY) Profit attributable to owners of parent: up 28% YoY Total Revenues Ordinary Income Profit Attributable to Owners of Parent 3

5 Total Revenues (Consolidated) [Quarter on Quarter] Fees and Commissions: 7,914 Mill., down 6% QoQ; Trading Profit and Loss: 11,465 Mill., up 13% QoQ [Year on Year] Fees and Commissions: up 46% YoY; Trading Profit and Loss: up 44% YoY FY215 FY217 1Q FY217 2Q FY216 Fees and Commissions 11,46 7,962 8,125 7,133 7,271 5,421 7,189 7,52 8,464 7, Trading Profit and Loss 8,719 7,3 7,576 6,732 6,671 7,972 9,723 11,369 1,143 11, Financial Revenue Total Operating Revenues 2,72 15,918 16,467 14,496 14,642 13,912 17,79 19,67 19,581 2, FY216 (MIllion yen) 25, 1% 9% Breakdown , 8% 15, 7% 6% % 1, 4% 5, 3% 2% % Fees and Commissions Trading Profit and Loss Financial Revenue % 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q Fees and Commissions Trading Profit and Loss Interest and Dividend Income 4

6 Commissions (Consolidated) [Quarter on Quarter] Brokerage Commissions: 3,792 Mill., down 1% QoQ; Subscription and Distribution: 1,75 Mill., down 11% QoQ; Other Commissions: 2,178 Mill., up 1% QoQ; [Year on Year] Brokerage Commissions: up 58% YoY; Subscription and Distribution: up 28% YoY; Other Commissions: up 39% YoY FY215 1Q FY217 2Q FY216 Brokerage Commissions 5,78 4,47 4,162 3,25 3,748 2,42 3,624 3,154 4,198 3, Underwriting and Sales Subscription and Distribution 4,27 2,19 2,26 1,994 1,848 1,336 1,72 2,1 1,99 1, Other Commissions 1,581 1,67 1,613 1,56 1,561 1,57 1,559 1,657 2,156 2, Fees and Commissions 11,46 7,962 8,125 7,133 7,271 5,421 7,189 7,52 8,464 7, FY216 FY217 (MIllion yen) 12, 1, 8, 6, 4, 2, Other Commissions Subscription and Distribution Underwriting and Sales Brokerage Commissions 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Breakdown Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q FY217 Other Commissions Subscription and Distribution Underwriting and Sales Brokerage Commissions 5

7 Trading Profit and Loss (Consolidated) [Quarter on Quarter] Profit on the trading of stocks: 6,6 Mill., up 33% QoQ; Profit on the trading of bonds and currencies: 4,864 Mill., down 6% QoQ [Year on Year] Profit on the trading of stocks: up 15% YoY; Profit on the trading of bonds and currencies: down 9% YoY FY215 FY217 1Q FY217 2Q FY216 Stocks 4,828 2,678 3,143 1,4 1,246 2,644 5,319 4,567 4,953 6, Bonds & Currencies 3,89 4,621 4,433 5,692 5,424 5,327 4,43 6,81 5,19 4, Trading Profit and Loss 8,719 7,3 7,576 6,732 6,671 7,972 9,723 11,369 1,143 11, FY216 12, 1, 8, 6, 4, 2, Stocks Bonds & Currencies Trading Profit and Loss 6

8 Selling, General and Administrative Expenses (Consolidated) FY215 FY217 1Q FY217 2Q FY216 Trading-related Expenses 3,419 2,93 2,794 2,675 2,654 2,466 2,747 3,318 3,292 3, Personnel Expenses 6,983 5,817 6,162 5,925 6,46 5,984 6,538 6,766 7,196 7, Occupancy and Rental 1,485 1,487 1,471 1,593 1,626 1,53 1,461 1,48 1,715 1, Operational Expenses 1,578 1,79 1,65 1,743 1,675 1,912 1,71 1,917 1,976 1, Depreciation Expenses Others , Total SG&A Expenses 14,597 12,991 13,62 12,982 13,19 12,921 13,521 14,596 15,717 16, FY216 18, 16, 14, 12, 1, 8, 6, [Quarter on Quarter] SG&A Expenses: 16,22 Mill., up 2% QoQ. Trading-related Expenses: 3,377 Mill., up 3% QoQ Personnel Expenses: 7,741 Mill., up 8% QoQ [Year on Year] SG&A Expenses: up 24% YoY Trading-related Expenses: up 37% YoY Personnel Expenses: up29% YoY 4, 2, Others Depreciation Expenses Operational Expenses Occupancy and Rental Personnel Expenses Trading-related Expenses 7

9 Non-operating Income and Expenses, Extraordinary Income and Loss [Quarter on Quarter] Non-operating Income: 79 Mill., down 16% QoQ FY215 FY216 FY217 1Q FY217 2Q FY216 Non-operating Income , , Equity in Earnings of Affiliates , Others Non-operating Expenses [Quarter on Quarter] Extraordinary Income: 524 Mil., down 95% QoQ Extraordinary Income Extraordinary Loss FY215 FY216 FY217 1Q FY217 2Q FY , ,

10 Asset under Custody with Breakdown of Sources [Year on Year] The total volume of the Asset under Custody for Tokai Tokyo Securities was 4,646. billion, up 15% YoY The total volume of the Asset under Custody for all the JVs combined was 1,444.3 billion, up 3% YoY (Billion yen) 6,5. 6,. 5,5. 5,. 4,5. 4,. 3,5. 3,. 2,5. 2,. 1,5. 1,. 5. 4,5.6 3,218. 3, , , /3 29/3 21/3 211/3 212/3 213/3 214/3 215/3 216/3 217/3 217/6 217/9 Stocks 1, , , , , ,777. 2,24.1 2, , , , ,574.9 Bonds ,72.2 1, ,47.9 1, ,8.5 1,6.6 1,73.9 Foreign Domestic Investment Trusts 1, , , ,21.5 1, , Other Tokai Tokyo Securities 3,9.2 2, ,494. 3, , , ,32.2 4,844. 4,94.2 4, , ,646. Takagi Securities JV Securities Total , ,84.3 1, ,39.8 1,444.3 JV Percentage 3.7% 14.6% 16.7% 21.5% 25.1% 27.% 28.6% 29.5% 3.8% 34.7% 32.% 32.2% 4,87.2 * JV Securities : YM Securities, Hamagin Tokai Tokyo Securities, Nishi-Nippon City Tokai Tokyo Securities, Senshu Ikeda Tokai Tokyo Securities, Hokuhoku Tokai Tokyo Securities, and Utsunomiya Securities (all equity method affiliates) * JV Percentage: Percentage of JV for retail business 5,299. 5, , ,61.6 6,25.7 6,46. JV Securities Total Takagi Securities Other Investment Trusts Domestic Bond Foreign Bond Stocks Tokai Tokyo Securities 9

11 Performance Indicators (Consolidated) FY215 FY216 FY217 EPS (yen) BPS (yen) ROE (%) Dividend Per Share (Yen) *ROE is annualized 7. (Yen) (%) EPS (yen) ROE(%) 1

12 Balance Sheet (Consolidated) As of Mar 31, 217 As of Sep 3, 217 Increase (Decrease) As of Mar 31, 217 As of Sep 3, 217 Increase (Decrease) Current Assets 688, ,222 75,67 Current Liabilities 51, ,295 64,896 Cash and Deposits 72,683 86,266 13,582 Trading Products 192, ,573 3,119 Cash Segregated as Deposits 37,56 41,33 3,823 Trade Date Accrural 7,54 1,92-5,62 Trading Products 292, ,412 19,917 Margin Transaction Liabilities 9,132 18,728 9,595 Trade Date Accrural Loans Payable Secured by Securities 131, ,99 45,826 Margin Transaction Assets 44,61 5,541 5,931 Deposits Received 32,925 41,25 8,324 Loans Secured by Securities 214, ,449 32,457 Guarantee Deposits Received 8,36 1,782 2,422 Other 26,263 26,222-4 Short-term Loans Payable 8,488 82,83 1,595 Short-term Bonds Payable 9,3 1,5 1,2 Current Portion of Bonds Payable 31,44 28,734-2,31 Provision for Bonuses 2,244 2, Other 5,742 6, Fixed assets 53,384 6,556 7,172 Noncurrent liabilities 73,857 77,489 3,632 Property, Plant and Equipment 8,561 8, Bonds Payable 8,983 12,67 3,84 Intangible Assets 5,196 5, Long-term Loans Payable 61,731 61, Investments and Other Assets 39,627 46,585 6,958 Deferred Tax Liabilities 1,241 2, Investment Securities 34,54 4,19 6,54 Provision for Directors' Retirement Benefits Net Defined Benefit Asset 2,317 2, Net Defined Benefit Liability Other 3,254 4, Other 1,338 1, Reserves under the Special Laws Total Liabilities 584,76 653,25 68,544 Net Assets 157, ,528 14,298 Shareholders' Equity 152, ,572 13,434 Accumulated other Comprehensive Income 3,175 3, Subscription Rights to Shares Minority Interests 1,472 1, Total assets 741, ,778 82,842 Total Liabilities and Net Assets 741, ,778 82,842 11

13 Overview of Tokai Tokyo Securities

14 Financial Summary 25, 2, 15, 1, 5, FY215 FY216 FY217 Apr. - Jun. '15 Jul. - Sep. '15 Oct. - Dec. '15 Jan. - Mar. '16 Apr. - Jun. '16 Jul. - Sep. '16 Oct. - Dec. '16 Jan. - Mar. '17 Apr. - Jun. '17 Jul. - Sep. '17 1Q FY217 2Q FY216 Total Revenues 19,663 15,2 15,718 13,995 13,953 13,4 17,32 17,873 16,874 17, SG&A Expenses 13,833 12,735 12,551 12,362 12,194 11,991 12,674 13,422 12,381 13, (Total Revenues = 1) Operating Income 5,211 1,676 2, , ,853 3,71 3,68 4, Non-operating Income Non-operating expenses Ordinary Income 5,343 1,84 2,68 1,128 1, ,991 3,823 3,811 4, (Total Revenues = 1) Extraordinary Income , Extraordinary Loss Income Before Tax 5,314 1,785 2,66 1,128 1,243 2,333 3,991 3,83 3,811 4, (Total Revenues = 1) Income Tax - Current & Deferred 1, ,249 1,227 1, Quarterly Profit 3,699 1,94 1, ,993 3,55 2,554 2,584 2, (Total Revenues) Total Revenues Ordinary Income Profit Attributable to Owners of Parent 13

15 Total Revenues FY215 FY216 FY217 1Q FY217 2Q FY216 Fees and Commissions 1,467 7,336 7,624 6,688 6,748 4,984 6,67 6,497 6,411 6, Brokerage Commissions 4,883 3,826 4,9 3,135 3,617 2,37 3,479 2,965 3,554 3, Underwriting and Sales Subscription and Distribution 4,114 2,28 1,93 1,92 1,776 1,283 1,628 1,916 1,415 1, Other Commissions 1,356 1,368 1,361 1,37 1,243 1,285 1,278 1,386 1,246 1, Trading Profit and Loss 8,266 7,37 7,336 6,683 6,511 7,91 9,935 1,825 9,567 1, Stocks 4,575 2,632 3,36 1,87 1,228 2,757 4,57 4,536 4,662 6, Bonds & Currencies 3,69 4,45 4,3 5,595 5,222 5,144 5,877 6,289 4,94 4, Financial Revenue Total Operating Revenues 19,663 15,2 15,718 13,995 13,953 13,4 17,32 17,873 16,874 17, , 12, 1, 1, 8, 8, 6, 6, 4, 4, 2, 2, Other Commissions Underwriting and Sales Subscription and Distribution Brokerage Commissions Stocks Bonds & Currencies 14

16 Selling, General and Administrative Expenses FY215 FY217 1Q FY217 2Q FY216 Trading-related Expenses 3,78 2,647 2,441 2,384 2,34 2,184 2,384 2,896 2,513 2, Personnel Expenses 5,353 4,486 4,69 4,434 4,476 4,46 4,866 4,927 4,366 4, Occupancy and Rental 1,177 1,189 1,145 1,224 1,243 1,152 1,114 1,86 1,14 1, Operational Expenses 2,4 2,253 2,263 2,319 2,255 2,469 2,39 2,58 2,277 2, Depreciation Expenses Others 1,816 1,768 1,626 1,645 1,589 1,473 1,684 1,73 1,787 1, Total SG&A Expenses 13,833 12,735 12,551 12,362 12,194 11,991 12,674 13,422 12,381 13, FY216 16, 14, 12, 1, 8, 6, 4, 2, Others Depreciation Expenses Operational Expenses Occupancy and Rental Personnel Expenses Trading-related Expenses 15

17 Stock Trading Volume and Amount Number of Shares FY215 (Million shares, Million yen) 1Q FY217 2Q FY216 2,22 1,588 1,766 1,515 1,581 1,651 2,289 1,935 1,66 1, Dealing Brokerage 1,393 1,28 1,17 1,2 1, ,657 1,39 1,184 1, Brokerage % Amount 69% 65% 63% 67% 65% 6% 72% 72% 74% 76% - - 1,723,9 1,544,66 1,688,56 1,458,566 1,525,327 1,491,97 1,962,365 1,858,373 1,954,549 2,1, Dealing 644,41 674, , , , ,66 796, , ,76 878, Brokerage 1,79,49 869,74 963,463 98, ,73 826,491 1,165,478 1,41,937 1,142,843 1,132, Brokerage % FY216 FY217 63% 56% 57% 62% 63% 55% 59% 56% 58% 56% - - (Million shares) 2,5 Number of Shares 9% (Billion yen) 2,5 Value 9% 2, 8% 7% 2, 8% 7% 1,5 6% 5% 1,5 6% 5% 1, 4% 3% 1, 4% 3% 5 2% 1% 5 2% 1% % % Brokerage Dealing Brokerage % Brokerage Dealing Brokerage % 16

18 Foreign Stocks [Quarter on Quarter] Revenues from Foreign Stocks: 5,629 Mil., up 14% QoQ [Year on Year] Revenues from Foreign Stocks: up 97% YoY 6, 5, Revenues from Foreign Stocks 1Q FY217 2Q FY , 3, 2, 1, 3,548 2,17 2,677 1,716 2,126 2,854 3,575 4,119 4,942 5,629 17

19 Sales of Foreign Currency Bonds and Structured Bonds [Quarter on Quarter] Sales of Foreign Currency Bonds and Structured Bonds: 55,636 Mil., down 18% QoQ [Year on Year] Sales of Foreign Currency Bonds and Structured Bonds: down 16% YoY FY215 FY216 FY217 1Q FY217 2Q FY216 Bonds in Foreign Currencies 16,915 19,18 14,948 11,759 1,883 15,687 17,1 15,385 12,48 1, Structured Bonds 34,3 34,135 37,534 3,812 34,38 5,917 6,743 61,129 55,71 45, Total Sales 5,918 53,153 52,482 42,571 45,263 66,64 77,753 76,514 68,181 55, , 8, 7, 6, 5, 4, 3, 2, 1, Bonds in Foreign Currencies Structured Bonds Total Sales 18

20 Investment Trust (Sales and Asset under Custody) [Quarter on Quarter] Sales of investment trusts: 89. Billion., up 23% QoQ Asset under Custody: 968. Billion., up 4% QoQ [Year on Year] Sale of Investment Trusts: up 73% YoY Asset under Custody: up 1% YoY Sales (Billion yen) Asset under Custody (Billion yen) 1,6 Sales Asset under Custody 1, ,2 1, Sales Asset under Custody 1, , , Q FY217 2Q FY216 Sales Asset under Custody

21 Investment Trust Sales Commissions [Quarter on Quarter] Sales Commissions: 1,29 Mil., down 8% QoQ [Year on Year] Sales Commissions: up 3% YoY Agency Commissions [Quarter on Quarter] Agency Commissions: 937 Mil., up 3% QoQ [Year on Year] Agency Commissions: up 3% YoY 4,5 1,5 4, 3,5 1,2 3, 2,5 9 2, 1,5 1, Sales Commissions 4,14 2,19 1,919 1,99 1,739 1,255 1,617 1,886 1,41 1,29 Agency Commissions 1,16 1,145 1, Q FY217 2Q FY216 1Q FY217 2Q FY

22 Net Inflow of Cash and Securities (Individuals) FY215 FY216 FY217 Inflow of Cash 8,13 87,773 83,428 87,757 71,38 66,462 74,76 71,865 61,622 64,548 Outflow of Cash -83,843-68,463-79,744-57,859-51,555-51,144-76,459-63,953-66,76-59,97 Net Inflow of Cash -3,713 19,31 3,684 29,898 19,825 15,318-1,753 7,912-5,84 4,578 Inflow of Securities 6,787 8,396 8,287 12,66 6,115 6,475 8,924 9,153 8,572 6,227 Outflow of Securities -13,681-11,317-4,79-4,82-3,88-6,93-3,812-17,16-3,991-7,233 Net Inflow of Securities -6,894-2,921 3,578 7,984 2, ,112-8,7 4,581-1,6 Net Inflow of Cash and Securities -1,67 16,389 7,262 37,882 22,6 15,7 3, ,572 * Excluding the transfer amount to Nishi-Nippon City Tokai Tokyo Securities in 2Q FY216, and the transfer amount to Hokuhoku Tokai Tokyo Securities in 4Q FY216 5, 4, 3, 2, 1, -1, -2, Net Inflow of Cash Net Inflow of Securities Net Inflow of Cash and Securities 21

23 Overview by Business Segment Total Revenue FY215 1Q FY217 2Q FY216 Retail 13,243 9,635 1,51 8,666 8,659 8,89 1,328 1,334 1,3 1, % Non-retail 6,881 6,41 5,954 5,939 5,685 5,777 7,597 7,931 6,939 8, % Total 2,124 15,676 16,6 14,64 14,343 13,866 17,925 18,266 17,239 18, FY216 FY217 Revenues (2Q FY217) Employee Allocation (end of September 217) Retail 55% Non-retail 18.2% Non-retail 45% Retail 81.8% * Numeric data on this slide were compiled based on the following definition. Retail = Accounted for by; Retail Sales Unit, Wealth Management Unit, One-Stop Channel Unit, and Toyota Business Supervisory Unit Non-retail = Accounted for by; Other than any of the above 22

24 Overview by Business Segment [Quarter on Quarter] Revenues from Retail Business Segment: 1,85 Mil., down 2% QoQ Revenues from Non-retail Business Segment: 8,121 Mil., up 17% QoQ (please refer to the previous page) [Year on Year] Revenues from Retail Business Segment: up 25% YoY Revenues from Non-retail Business Segment: up 41% YoY (please refer to the previous page) - Revenues from Market & Products Segment: up 45% YoY FY215 FY216 1Q FY217 2Q FY216 Retail Sales 13,243 9,635 1,51 8,666 8,659 8,89 1,328 1,334 1,3 1, Corporate Sales Institutional Sales Market & Products 4,481 4,59 3,96 4,68 3,722 4,187 5,267 6,18 5,126 6, Corporate Finance Other 1, Total 2,124 15,676 16,6 14,64 14,343 13,866 17,925 18,266 17,239 18, FY217 * Numeric data on this slide were compiled based on the following definition. Retail Sales = Accounted for by; Retail Sales Unit, Wealth Management Unit, One-Stop Channel Unit, and Toyota Business Supervisory Unit Corporate Sales = Accounted for by; Corporate & Institutional Sales Unit excluding Institutional Sales Department Institutional Sales = Accounted for by; Institutional Sales Department of Corporate & Institutional Sales Unit Market & Products = Accounted for by; Market Division and Products Division of Products & Marketing Unit Corporate Finance = Accounted for by; Investment Banking Unit 23

25 Revenues, Number of Accounts, and Asset under Custody Attained by Each Region (Retail) Revenues by Region 1Q 1Q 1Q 2Q 2Q 2Q FY215 FY215 FY215 3Q 3Q 3Q 4Q 4Q 4Q FY217 1Q FY217 2Q FY216 Eastern Japan 554,253 55, ,384 47,22 452, ,98 512, , ,83 526,964 % 2.% 2.% 19.9% 19.9% 2.1% 2.2% 2.4% 2.2% 2.2% 19.8% Central Japan 1,855,666 1,688,492 1,743,48 1,61,755 1,518,457 1,69,647 1,73,813 1,733,34 1,793,12 1,884,678 % 67.1% 67.1% 67.4% 67.8% 67.6% 69.% 68.9% 7.3% 7.3% 7.9% Western Japan 356, , , , , , , , , ,895 % 12.9% 12.9% 12.7% 12.3% 12.3% 1.8% 1.7% 9.6% 9.5% 9.3% Total 2,766,373 2,517,54 2,587,438 2,363,549 2,246,179 2,449,143 2,512,651 2,467,1 2,551,359 2,659, FY216 1Q 2Q 3Q 4Q 1Q (Accounts) FY217 2Q 1Q FY217 2Q FY216 Eastern Japan 74,781 73,815 73,888 71,9 7,954 69,682 7,251 66,538 64,287 63,543 % 17.7% 17.6% 17.4% 17.5% 17.5% 17.6% 17.7% 17.3% 17.1% 17.% Central Japan 296,63 295, , , , , , , , ,31 % 7.2% 7.4% 7.6% 7.6% 7.7% 72.% 72.% 73.6% 73.9% 74.1% Western Japan 51,45 5,462 5,564 48,48 48,81 41,336 41,45 35,114 33,828 33,562 % 12.1% 12.% 11.9% 11.8% 11.8% 1.4% 1.3% 9.1% 9.% 9.% Total 422, ,98 423,611 45,667 46,29 396, ,95 385, , , FY216 1Q 2Q 3Q 4Q 1Q FY217 2Q 1Q FY217 2Q FY216 Eastern Japan 3,28 2,82 2,74 1,787 1,719 1,637 2,199 2,29 1,964 1,979 % 22.8% 21.7% 2.8% 21.% 2.1% 2.3% 21.1% 19.9% 19.2% 19.2% Central Japan 8,199 6,73 6,292 5,39 5,584 5,339 6,91 7,54 7,51 7,91 % 61.9% 63.2% 63.2% 62.4% 65.2% 66.2% 66.1% 69.2% 69.% 68.9% Western Japan 2,29 1,449 1,595 1,45 1,266 1,88 1,338 1,112 1,22 1,218 % 15.3% 15.1% 16.% 16.5% 14.8% 13.5% 12.8% 1.9% 11.8% 11.8% Total 13,256 9,64 9,962 8,51 8,568 8,64 1,437 1,195 1,217 1, Number of Accounts by Region Asset under Custody by Region FY216 1Q 2Q 3Q 4Q 1Q 2Q (Billion yen) Revenues by Region Western Japan Central Japan Eastern Japan Number of Accounts by Region (Accounts) 5, 4, 3, 2, 1, Western Japan Central Japan Eastern Japan Number of Accounts by Region (Billion yen) 3, 2,5 2, 1,5 1, 5 Western Japan Central Japan Eastern Japan 24

26 Capital Adequacy Ratio FY215 FY216 FY217 1Q FY217 2Q FY216 Capital Adequacy Ratio (%) Net Capital 11,924 1,338 12,246 99,4 98,346 97,753 11,85 99,931 97,51 96, Risk amount 28,77 27,613 28,992 26,6 27,398 24,354 23,89 23,6 26,57 24, Market Risk Amount 13,212 11,441 13,229 1,88 12,347 9,912 8,941 8,463 11,318 9, Customer Risk Amount 1,833 2,6 2,3 1,836 1,964 1,787 1,645 1,93 1,841 1, Basic Risk Amount 13,724 14,111 13,759 13,361 13,86 12,654 12,51 12,639 12,897 13, , (%) 5 1, 45 8, 4 6, 35 4, 3 2, 25 Net Capital Risk amount Capital Adequacy Ratio (%) 2 25

27 (Reference) Takagi Securities Consolidated Statements of Income FY217 1Q 2Q Total Revenues 1,446 1,39 Fees and Commissions 1,317 1,141 Brokerage Commissions Underwriting and Sales 8 Subscription and Distribution Other Commissions Trading Profit and Loss Stocks Bonds & Currencies Financial Revenue Financial Expenses 1 9 SG&A Expenses 1,989 1,699 Trading-related Expenses Personnel Expenses Occupancy and Eental Operational Expenses Depreciation Expenses 2 3 Others Operating Income Non-operating Income Non-operating Expenses Ordinary Income Extraordinary Income 43 8,9 Extraordinary Loss - - Income Before Tax -35 7,699 Income Tax - Current & Deferred 195 1,81 Quarterly Profit ,897 Stock Trading Amount FY217 1Q 2Q Amount 82,693 79,916 Dealing 1,369 9,273 Brokerage 81,323 7,643 Brokerage % 98% 88% Asset under Custody and Number of Accounts (Billion yen, Accounts) FY217 1Q 2Q Asset under Custody Number of Accounts 53,685 53,636 Number of Operating Outlets (Number of Operating Outlets) FY217 1Q 2Q

28 Inquiries to be directed to: Corporate Communications Department, Tokai Tokyo Financial Holdings, Inc. TEL: FAX: This material is intended to provide information regarding the Company s most recent operational result but NOT to solicit investment in securities issued by the Company. 27