Result Review on 2 nd Qtr of Fiscal 217 that ends in March 218 October 27, 217
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
Overview of Consolidated Financial Results
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 2,249 13 146 SG&A Expenses 14,597 12,991 13,62 12,982 13,19 12,921 13,521 14,596 15,717 16,22 12 124 (Total Revenues = 1) 71 82 79 9 9 93 76 77 8 79 - - Operating Income 5,797 2,65 2,997 1,196 1,99 676 3,779 3,942 3,24 3,759 117 556 Non-operating Income 851 829 53 581 421 1,899 57 1,43 843 79 84 37 Non-operating expenses 23 43 7 36 8 79-4 79 32 68 213 86 Ordinary Income 6,625 3,436 3,493 1,742 1,512 2,496 4,354 4,96 4,15 4,4 11 176 (Total Revenues = 1) 32 22 21 12 1 18 24 26 21 22 - - Extraordinary Income 794 677 761 45 576 1,335 88 935 11,161 524 5 39 Extraordinary Loss 31 21 2 1 - - 9 177 22 - - Income Before Tax 7,388 4,92 4,252 2,191 2,88 3,831 4,442 5,832 15, 4,92 33 128 (Total Revenues = 1) 36 26 26 15 14 28 25 31 77 24 - - Income Tax - Current & Deferred 2,11 1,4 1,396 536 722 871 1,54 1,544 1,738 1,46 6 12 Profit Attributable to Owners of Parent 5,155 2,7 2,793 1,773 1,455 2,973 3,262 4,299 13,248 3,814 29 128 (Total Revenues) 25 17 17 12 1 21 18 23 68 19 - - 25, 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
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 7,914 94 146 Trading Profit and Loss 8,719 7,3 7,576 6,732 6,671 7,972 9,723 11,369 1,143 11,465 113 144 Financial Revenue 936 655 764 631 699 518 877 645 973 87 89 168 Total Operating Revenues 2,72 15,918 16,467 14,496 14,642 13,912 17,79 19,67 19,581 2,249 13 146 FY216 (MIllion yen) 25, 1% 9% Breakdown 5 4 5 4 5 4 5 3 5 4 2, 8% 15, 7% 6% 42 46 46 46 46 57 55 6 52 57 5% 1, 4% 5, 3% 2% 53 5 49 49 5 39 4 37 43 39 1% 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
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 3,792 9 158 Underwriting and Sales 116 116 323 327 112 111 284 23 2 236 118 213 Subscription and Distribution 4,27 2,19 2,26 1,994 1,848 1,336 1,72 2,1 1,99 1,75 89 128 Other Commissions 1,581 1,67 1,613 1,56 1,561 1,57 1,559 1,657 2,156 2,178 11 139 Fees and Commissions 11,46 7,962 8,125 7,133 7,271 5,421 7,189 7,52 8,464 7,914 94 146 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 14 2 2 22 21 29 39 28 25 28 25 25 4 1 2 1 5 22 23 25 28 24 29 23 22 2 4 3 2 3 46 51 51 46 52 44 5 45 5 48 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q FY217 Other Commissions Subscription and Distribution Underwriting and Sales Brokerage Commissions 5
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 6,6 133 25 Bonds & Currencies 3,89 4,621 4,433 5,692 5,424 5,327 4,43 6,81 5,19 4,864 94 91 Trading Profit and Loss 8,719 7,3 7,576 6,732 6,671 7,972 9,723 11,369 1,143 11,465 113 144 FY216 12, 1, 8, 6, 4, 2, Stocks Bonds & Currencies Trading Profit and Loss 6
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 3,377 13 137 Personnel Expenses 6,983 5,817 6,162 5,925 6,46 5,984 6,538 6,766 7,196 7,741 18 129 Occupancy and Rental 1,485 1,487 1,471 1,593 1,626 1,53 1,461 1,48 1,715 1,718 1 114 Operational Expenses 1,578 1,79 1,65 1,743 1,675 1,912 1,71 1,917 1,976 1,987 11 14 Depreciation Expenses 448 47 466 462 454 43 446 44 424 55 119 117 Others 682 62 515 581 734 623 616 673 1,111 691 62 111 Total SG&A Expenses 14,597 12,991 13,62 12,982 13,19 12,921 13,521 14,596 15,717 16,22 12 124 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
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 851 829 53 581 421 1,899 57 1,43 843 79 84 37 Equity in Earnings of Affiliates 465 248 242-8 78 1,296 337 346 392 328 84 25 Others 385 581 26 589 343 62 233 697 451 38 84 63 Non-operating Expenses 23 43 7 36 8 79-4 79 32 68 213 86 [Quarter on Quarter] Extraordinary Income: 524 Mil., down 95% QoQ Extraordinary Income Extraordinary Loss FY215 FY216 FY217 1Q FY217 2Q FY216 794 677 761 45 576 1,335 88 935 11,161 524 5 39 31 21 2 1 - - 9 177 22 12-8
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. 3,957.7 4,484.1 4,445.1. 28/3 29/3 21/3 211/3 212/3 213/3 214/3 215/3 216/3 217/3 217/6 217/9 Stocks 1,969.8 1,397.3 1,738.3 1,544.8 1,492.2 1,777. 2,24.1 2,411.6 2,129.8 2,328.2 2,431.8 2,574.9 Bonds 893.4 886.6 892.5 1,72.2 1,51.9 994.5 1,47.9 1,12.9 973.3 1,8.5 1,6.6 1,73.9 Foreign 364.5 378.9 38.3 474.8 463.4 416.8 45.3 48.2 324.7 378.3 417.5 423.4 Domestic 528.9 57.7 512.1 597.3 588.5 577.6 597.6 622.7 648.5 63.3 643.1 65.5 Investment Trusts 1,2.2 597.8 847. 1,227.7 1,163.3 1,21.5 1,231.1 1,312.2 971.2 913.7 932.1 968. Other 16.6 13.2 16. 13.5 11.8 13.1 17. 17.3 19.7 25.9 28.7 29.1 Tokai Tokyo Securities 3,9.2 2,895.1 3,494. 3,858.3 3,719.4 3,995.2 4,32.2 4,844. 4,94.2 4,276.3 4,453.1 4,646. Takagi Securities - - - - - - - - - - 361.7 369.7 JV Securities Total 15.4 322.9 463.7 625.8 725.7 875. 978.8 1,151.5 1,84.3 1,334.3 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. 5,995.5 5,178.5 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
Performance Indicators (Consolidated) FY215 FY216 FY217 EPS (yen) 19.33 1.16 1.54 6.7 5.52 11.32 12.44 16.4 5.62 14.58 BPS (yen) 587.38 581.37 577.76 58.16 566.7 574.26 576.97 593.47 634.1 647.34 ROE (%) 13.2 7. 7.3 4.6 3.9 7.9 8.6 11.1 31.9 9. Dividend Per Share (Yen) - 14. - 14. - 12. - 14. - 14. *ROE is annualized 7. (Yen) (%) 35. 6. 3. 5. 25. 4. 2. 3. 15. 2. 1. 1. 5... EPS (yen) ROE(%) 1
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 688,551 764,222 75,67 Current Liabilities 51,399 575,295 64,896 Cash and Deposits 72,683 86,266 13,582 Trading Products 192,454 195,573 3,119 Cash Segregated as Deposits 37,56 41,33 3,823 Trade Date Accrural 7,54 1,92-5,62 Trading Products 292,495 312,412 19,917 Margin Transaction Liabilities 9,132 18,728 9,595 Trade Date Accrural - - - Loans Payable Secured by Securities 131,164 176,99 45,826 Margin Transaction Assets 44,61 5,541 5,931 Deposits Received 32,925 41,25 8,324 Loans Secured by Securities 214,992 247,449 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 2,437 192 Other 5,742 6,293 55 Fixed assets 53,384 6,556 7,172 Noncurrent liabilities 73,857 77,489 3,632 Property, Plant and Equipment 8,561 8,442-118 Bonds Payable 8,983 12,67 3,84 Intangible Assets 5,196 5,528 331 Long-term Loans Payable 61,731 61,58-223 Investments and Other Assets 39,627 46,585 6,958 Deferred Tax Liabilities 1,241 2,148 97 Investment Securities 34,54 4,19 6,54 Provision for Directors' Retirement Benefits 13 12-1 Net Defined Benefit Asset 2,317 2,222-95 Net Defined Benefit Liability 458 235-222 Other 3,254 4,254 999 Other 1,338 1,427 89 Reserves under the Special Laws 449 465 15 Total Liabilities 584,76 653,25 68,544 Net Assets 157,229 171,528 14,298 Shareholders' Equity 152,137 165,572 13,434 Accumulated other Comprehensive Income 3,175 3,91 735 Subscription Rights to Shares 443 497 53 Minority Interests 1,472 1,547 74 Total assets 741,935 824,778 82,842 Total Liabilities and Net Assets 741,935 824,778 82,842 11
Overview of Tokai Tokyo Securities
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 17,89 16 134 SG&A Expenses 13,833 12,735 12,551 12,362 12,194 11,991 12,674 13,422 12,381 13,26 15 19 (Total Revenues = 1) 7 85 8 88 87 89 73 75 73 73 - - Operating Income 5,211 1,676 2,47 969 1,112 782 3,853 3,71 3,68 4,151 113 531 Non-operating Income 132 133 138 16 13 133 139 121 138 134 97 11 Non-operating expenses 4 1 6 1 9 7 1 14 - Ordinary Income 5,343 1,84 2,68 1,128 1,236 915 3,991 3,823 3,811 4,284 112 468 (Total Revenues = 1) 27 12 17 8 9 7 23 21 23 24 - - Extraordinary Income - - - 7 1,417 - -7 - - - - Extraordinary Loss 29 19 2 - - - 11 - - - - Income Before Tax 5,314 1,785 2,66 1,128 1,243 2,333 3,991 3,83 3,811 4,284 112 184 (Total Revenues = 1) 27 12 17 8 9 17 23 21 23 24 - - Income Tax - Current & Deferred 1,615 691 9 554 416 339 936 1,249 1,227 1,334 19 394 Quarterly Profit 3,699 1,94 1,75 573 827 1,993 3,55 2,554 2,584 2,95 114 148 (Total Revenues) 19 7 11 4 6 15 18 14 15 16 - - Total Revenues Ordinary Income Profit Attributable to Owners of Parent 13
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 6,144 96 123 Brokerage Commissions 4,883 3,826 4,9 3,135 3,617 2,37 3,479 2,965 3,554 3,235 91 14 Underwriting and Sales 113 113 322 325 111 18 283 229 195 228 117 211 Subscription and Distribution 4,114 2,28 1,93 1,92 1,776 1,283 1,628 1,916 1,415 1,39 93 12 Other Commissions 1,356 1,368 1,361 1,37 1,243 1,285 1,278 1,386 1,246 1,37 11 17 Trading Profit and Loss 8,266 7,37 7,336 6,683 6,511 7,91 9,935 1,825 9,567 1,924 114 138 Stocks 4,575 2,632 3,36 1,87 1,228 2,757 4,57 4,536 4,662 6,69 13 22 Bonds & Currencies 3,69 4,45 4,3 5,595 5,222 5,144 5,877 6,289 4,94 4,855 99 94 Financial Revenue 929 645 757 623 693 514 696 55 895 821 92 16 Total Operating Revenues 19,663 15,2 15,718 13,995 13,953 13,4 17,32 17,873 16,874 17,89 16 134 12, 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
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 2,722 18 125 Personnel Expenses 5,353 4,486 4,69 4,434 4,476 4,46 4,866 4,927 4,366 4,813 11 19 Occupancy and Rental 1,177 1,189 1,145 1,224 1,243 1,152 1,114 1,86 1,14 1,134 99 98 Operational Expenses 2,4 2,253 2,263 2,319 2,255 2,469 2,39 2,58 2,277 2,287 1 93 Depreciation Expenses 368 389 384 353 324 35 315 3 294 378 129 124 Others 1,816 1,768 1,626 1,645 1,589 1,473 1,684 1,73 1,787 1,688 94 115 Total SG&A Expenses 13,833 12,735 12,551 12,362 12,194 11,991 12,674 13,422 12,381 13,26 15 19 FY216 16, 14, 12, 1, 8, 6, 4, 2, Others Depreciation Expenses Operational Expenses Occupancy and Rental Personnel Expenses Trading-related Expenses 15
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 1,61 1 98 Dealing 629 559 659 495 561 658 631 545 422 384 91 58 Brokerage 1,393 1,28 1,17 1,2 1,2 993 1,657 1,39 1,184 1,227 14 124 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 2,1,23 13 135 Dealing 644,41 674,991 724,593 549,989 563,597 664,66 796,887 816,435 811,76 878,179 18 132 Brokerage 1,79,49 869,74 963,463 98,577 961,73 826,491 1,165,478 1,41,937 1,142,843 1,132,51 99 137 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
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 FY216 114 197 4, 3, 2, 1, 3,548 2,17 2,677 1,716 2,126 2,854 3,575 4,119 4,942 5,629 17
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 1,177 82 65 Structured Bonds 34,3 34,135 37,534 3,812 34,38 5,917 6,743 61,129 55,71 45,459 82 89 Total Sales 5,918 53,153 52,482 42,571 45,263 66,64 77,753 76,514 68,181 55,636 82 84 9, 8, 7, 6, 5, 4, 3, 2, 1, Bonds in Foreign Currencies Structured Bonds Total Sales 18
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) 18 16 Asset under Custody (Billion yen) 1,6 Sales Asset under Custody 1,4 14 12 1 8 6 4 1,2 1, 8 6 4 2 Sales 156.9 96.2 83.9 96.3 75.3 51.4 68.2 73.1 72.4 89. Asset under Custody 1,373.8 1,246.1 1,22.7 971.2 898.4 879.6 958.8 913.7 932.1 968. 2 1Q FY217 2Q FY216 Sales 123 173 Asset under Custody 14 11 19
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, 6 3 5 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 1,86 976 954 99 917 97 98 937 1Q FY217 2Q FY216 1Q FY217 2Q FY216 92 13 13 13 2
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 2,235 382 5,112-8,7 4,581-1,6 Net Inflow of Cash and Securities -1,67 16,389 7,262 37,882 22,6 15,7 3,359-95 -53 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
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 1,85 98 125 % 66 61 63 59 6 58 58 57 6 55 - - Non-retail 6,881 6,41 5,954 5,939 5,685 5,777 7,597 7,931 6,939 8,121 117 141 % 34 39 37 41 4 42 42 43 4 45 - - Total 2,124 15,676 16,6 14,64 14,343 13,866 17,925 18,266 17,239 18,26 16 131 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
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 1,85 98 125 Corporate Sales 796 741 635 81 731 691 781 781 686 625 91 9 Institutional Sales 229 29 211 268 257 271 295 248 255 259 12 96 Market & Products 4,481 4,59 3,96 4,68 3,722 4,187 5,267 6,18 5,126 6,7 118 145 Corporate Finance 154 162 291 333 236 21 397 359 249 285 115 136 Other 1,221 421 856 467 738 418 858 526 624 882 141 211 Total 2,124 15,676 16,6 14,64 14,343 13,866 17,925 18,266 17,239 18,84 19 136 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
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 55,383 514,384 47,22 452,347 494,98 512,516 497,558 515,83 526,964 % 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 356,453 323,629 329,574 291,591 275,374 263,517 269,322 236,238 242,436 247,895 % 12.9% 12.9% 12.7% 12.3% 12.3% 1.8% 1.7% 9.6% 9.5% 9.3% 12 15 12 16 111 94 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 2,659,537 14 19 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 296,63 295,631 299,159 286,529 287,255 285,335 286,654 283,987 277,511 277,31 % 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.% 99 1 99 91 97 81 Total 422,429 419,98 423,611 45,667 46,29 396,353 397,95 385,639 375,626 374,46 1 94 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% 11 11 11 121 133 112 Total 13,256 9,64 9,962 8,51 8,568 8,64 1,437 1,195 1,217 1,287 11 128 Number of Accounts by Region Asset under Custody by Region FY216 1Q 2Q 3Q 4Q 1Q 2Q (Billion yen) Revenues by Region 14 12 1 8 6 4 2 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
Capital Adequacy Ratio FY215 FY216 FY217 1Q FY217 2Q FY216 Capital Adequacy Ratio (%) 354.2 363.3 352.6 38.6 358.9 41.3 437.8 434.3 374.2 397. 16 99 Net Capital 11,924 1,338 12,246 99,4 98,346 97,753 11,85 99,931 97,51 96,134 99 98 Risk amount 28,77 27,613 28,992 26,6 27,398 24,354 23,89 23,6 26,57 24,21 93 99 Market Risk Amount 13,212 11,441 13,229 1,88 12,347 9,912 8,941 8,463 11,318 9,222 81 93 Customer Risk Amount 1,833 2,6 2,3 1,836 1,964 1,787 1,645 1,93 1,841 1,96 14 17 Basic Risk Amount 13,724 14,111 13,759 13,361 13,86 12,654 12,51 12,639 12,897 13,81 11 13 12, (%) 5 1, 45 8, 4 6, 35 4, 3 2, 25 Net Capital Risk amount Capital Adequacy Ratio (%) 2 25
(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 646 533 Underwriting and Sales 8 Subscription and Distribution 492 415 Other Commissions 177 184 Trading Profit and Loss 81 131 Stocks 36 18 Bonds & Currencies 44 22 Financial Revenue 46 35 Financial Expenses 1 9 SG&A Expenses 1,989 1,699 Trading-related Expenses 337 346 Personnel Expenses 886 878 Occupancy and Eental 142 139 Operational Expenses 36 363 Depreciation Expenses 2 3 Others 259-34 Operating Income -553-398 Non-operating Income 159 8 Non-operating Expenses Ordinary Income -393-39 Extraordinary Income 43 8,9 Extraordinary Loss - - Income Before Tax -35 7,699 Income Tax - Current & Deferred 195 1,81 Quarterly Profit -545 5,897 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 361.7 369.8 Number of Accounts 53,685 53,636 Number of Operating Outlets (Number of Operating Outlets) FY217 1Q 2Q 14 14 26
Inquiries to be directed to: Corporate Communications Department, Tokai Tokyo Financial Holdings, Inc. TEL: 3-3517-8618 FAX: 3-3517-8314 E-mail: fh_ir@tokaitokyo-fh.jp 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