review for the year ending in march 2010presentation · 1-4q 1-4q 1-4q fy2007 1-4q=100 fy2008...
TRANSCRIPT
Aiming to be “The Premier House”
Review For the Year Ending in
March 2010Presentation
June 2010
Tokai Tokyo Financial Holdings, Inc.
1
Contents
Overview of Tokai Tokyo Financial Holdings
Company Overview
FY09 Result AnalysisOverview of Financial Result
Supporting Factors for Performance
Primary Measures Taken
Comparison with Peers
Strategic Targets and Progress Report
TT Revolution
Compliance and Risk management
Reference Data
Contact
* Unless otherwise stated, all the numeric data are presented on consolidated basis.
Overview of Tokai Tokyo Financial Holdings
3
Company Overview
OtherDomestic
Institutions14.13%
ForeignInvestors11.10%
SecuritiesHouses0.98%
FinancialInstitutions
45.64%
TreasuryStock0.33%
PersonalInvestors and
others27.82%
Major Shareholders Profile
Distribution of Shareholders
(As of March 31, 2010)
Shareholder's nameNumber of
Shares held(in thousand)
%
1 Mitsui Sumitomo Insurance Co., Ltd. 28,507 10.19
2 Japan Trustee Services Bank, Ltd. (TrustAccount) 21,322 7.62
3 Toyota Financial Services Corporation 14,280 5.11
4 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 12,016 4.30
5 The Master Trust Bank of Japan, Ltd. (TrustAccount)
10,693 3.82
6 Meiji Yasuda Life Insurance Company 5,000 1.79
7 The Chuo Mitsui Trust and Banking Company,Ltd. 4,800 1.72
8 The Chase Manhattan Bank NA London SLOmnibus Account 4,304 1.54
9
Japan Trustee Services Bank, Ltd. (TrustAccount for The Sumitomo Trust and BankingCo., Ltd. retirement benefit trust account forToyota Motor Corporation)
3,461 1.24
10 State Street Bank and Trust Company 505223 3,422 1.22
(As of March 31, 2010)
Company Name: Tokai Tokyo Financial Holdings, Inc
Date of Incorporation: June 19, 1929
Capital: 36 Billion Yen
Number of Employees: 57 (excluding 4 on temporary contract)
Number of Employeeson Consolidated Basis: 2,194
(As of March 31, 2010)
Domestic Subsidiaries: 9 Domestic Affiliates: 3Overseas Subsidiaries: 3
FY09 Result Analysis
5
Overview of Financial Results (Consolidated)
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY2005 FY2006 FY2007 FY2008 FY2009
Total Revenues, Ordinary Income(Million yen)
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Income before Tax, Net Income(Million yen)
Total RevenuesOrdinary IncomeIncome Before TaxNet Income
6
Supporting Factors for Performance
Growth of Investment Trust
Continuous High Level Sales of Foreign Currency Bonds and Structured Bonds
Expanding Foreign Stocks
Recovery of Dealing
Growth of Customer Related Trading Revenue
Cost Control
Growth of Investment Trust
Continuous High Level Sales of Foreign Currency Bonds and Structured Bonds
Expanding Foreign Stocks
Recovery of Dealing
Growth of Customer Related Trading Revenue
Cost Control
7
Primary Measures Taken
Business Portfolio Reform
Focusing on Investment Banking and the Result
Expansion of Retail Business and Strategies
Undertaken
Regional Distribution of Customers
Business Portfolio Reform
Focusing on Investment Banking and the Result
Expansion of Retail Business and Strategies
Undertaken
Regional Distribution of Customers
8
Comparison with Peers
Profitability Ranked by Ordinary Income
Comparative Trend of Stock Price in Relation to
General Stock Price Change
Stock Indices
Profitability Ranked by Ordinary Income
Comparative Trend of Stock Price in Relation to
General Stock Price Change
Stock Indices
Strategic Targets and Progress ReportWhere are we now?
10
TT Revolution
Innovation Jump Up 5 (Apr 2006~Mar 2009) TT Revolution (Apr 2009~Mar 2012)
Reform corporate governance/corporate culture
Reform the business portfolio/the business model
Reform the network
Reform productsand services
Reform employeeduty assignment and productivity
Reform corporate governance/corporate culture
Reform the business portfolio/the business model
Reform the network
Reform productsand services
Reform employeeduty assignment and productivity
Productivity
Growth Potential
Customer Loyalty
Communication
Super Community House
Productivity
Growth Potential
Customer Loyalty
Communication
Super Community House
11
TT Revolution ~Key Factors for Success~
Productivity
Growth Potential
Customer Loyalty
Communication
Super Community House
Productivity
Growth Potential
Customer Loyalty
Communication
Super Community House
12
Productivity Improvement
Productivity Booster
Prioritize Young Employees
Branch Network Optimization
Product Lineup and Information Provision
Awaken Inactive Accounts
Focus on High Wealth Clientele
13
Growth Strategy
Blue Ocean Strategy
Alliance with Regional Banks
M&A
Partnership with Toyota Group(Integration with Toyota FS Securities and
Subsequent Game Planning )
Reference Data
15
Group Structure
Effective April 1st 2009, the group moved into holding company structure with the following purposes.
Separation of the daily routine of security house operation from the group management duty to expedite the decision making processHolding company structure intended to secure mobility and flexibility to implement expeditiously regional strategy and alliance strategy
Overseas Business Alliance Holding Company (Listed Company)Tokai Tokyo Financial Holdings, Inc.
The group picture under holding company structure
Consolidated Subsidiaries
Daew
oo Securities (Korea)
Saigon Securities (Vietnam)
Guotai Junan Securities (C
hina)
Tokai Tokyo Securities (USA)
Tokai Tokyo Securities Europe
Tokai Tokyo Securities (Asia)
Tokai Tokyo Securities
Tokai Tokyo Business Service
Tokai Tokyo Service
Tokai Tokyo-Sumishin
Wealth Partners & C
onsulting
Tokai Tokyo Investment
Tokai Tokyo Finance & R
eal Estate
Tokai Tokyo Investm
ent Managem
ent
Utsunom
iya Securities
YM Securities
Ham
agin Tokai Tokyo Securities
Tokai Tokyo research Center
Equity Method Affiliates
Nishi-N
ippon City Tokai Tokyo
Securities
* In April 2010, Tokai Tokyo Securities Co., Ltd. and Toyota Financial Services Securities Co., Ltd. were merged.
16
Tokai Tokyo Securities
Network
YM Securities Co., Ltd.
Hamagin Tokai Tokyo Securities
Nishi-Nippon City Tokai Tokyo Securities
(13 branches)
(9 branches)
Koushin’etsu /Hokuriku4 branches
Kinki4 branches
Chugoku/Shikoku4 branches
Kyushu4 branches
Tokai39 branches(Including 29 in Aichi)
Kanto13 branches (Including 7 in Tokyo)
Hokkaido/Tohoku2 branches
70 Nation-wide3 Overseas(As of May 17, 2010 )
(Started operation with 3 branches)
17
Overview of Financial Results (Consolidated)
(Million yen)FY2005 FY2006 FY2007 FY2008 FY2009 Year on Year
April 1, 2005March 31, 2006
April 1, 2006March 31, 2007
April 1, 2007March 31, 2008
April 1, 2008March 31, 2009
April 1, 2009March 31, 2010
Previous year= 100
Total Revenues 71,776 63,765 63,152 43,627 58,500 134Interest expense 960 1,364 2,147 1,977 1,389 70
Net Revenues 70,816 62,400 61,004 41,649 57,110 137 SG&A Expenses 44,272 44,403 46,931 42,546 46,593 110Operating Income 26,543 17,997 14,073 -896 10,516 -Ordinary Income 27,191 18,723 14,919 -559 12,008 - (Total Revenues =100) 38 29 24 - 21Income Before Tax 26,225 18,536 15,508 2,439 11,779 483 (Total Revenues =100) 37 29 25 6 20Net Income 22,085 10,668 9,025 2,482 7,160 288 (Total Revenues =100) 31 17 14 6 12 Income Tax - current & deferred 4,078 7,843 6,502 -18 4,618 -
18
Trading Profit and Loss (Consolidated)
* Numeric data in parentheses account only for the operation of Tokai Tokyo Securities Co., Ltd. and they were extracted from the internal managerial record of the same.
(Million yen)FY2005 FY2006 FY2007 FY2008 FY2009 Year on Year
April 1, 2005March 31, 2006
April 1, 2006March 31, 2007
April 1, 2007March 31, 2008
April 1, 2008March 31, 2009
April 1, 2009March 31, 2010
Previous year= 100
Stocks 11,252 6,613 7,659 1,358 9,132 672(Foreign Stocks) 5,265 4,740 6,501 861 5,255 610(Stock Proprietary trading) N.A. 1,623 1,218 958 2,924 305Bonds & Currencies 5,316 6,968 8,353 14,638 17,124 117(Foreign Bonds & Structured Bonds) 4,845 6,084 7,804 13,470 15,528 115(Bond Proprietary Trading) N.A. 413 77 39 51 131Trading Profit and Loss 16,568 13,581 16,013 15,996 26,256 164
0
2,000
4,000
6,000
8,000
10,000
12,00014,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
FY2005 FY2006 FY2007 FY2008 FY2009
(Million yen)Stocks Bonds & Currencies Trading Profit and Loss
19
Growth of Investment Trust
Investment Trust Sales
Monthly Investment Trust Sales
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY2008FY2009
(Million yen)
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Total Sales 453,665 244,424 516,975 114 212
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
20
Continuous High Level Sales of Foreign Currency Bonds and Structured Bonds
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Bonds in foreign currencies 100,495 164,989 92,035 92 56 US Dollar 3,160 6,537 2,437 77 37 Australian Dollar 26,844 27,317 10,980 41 40 New Zealand Dollar 58,131 14,660 23,506 40 160 Euro 1,127 2,671 709 63 27 Canadian Dollar 8 15 0 - - British Pound 11,225 21 5 0 24 South African Rand 0 113,767 28,055 - 25 Turkish Lira 0 0 6,876 - - Brasilian Real 0 0 19,467 - -Structured bonds 137,772 124,809 144,681 105 116 Interest rate and foreign exchange-linked 26,393 16,663 23,954 91 144
Interest rate and foreign exchange-linked, publicly offered 0 3,156 0 - -
Equity-linked 27,650 64,067 89,766 325 140 Equity-linked, publicly offered 83,729 40,923 30,961 37 76Total sales 235,740 289,799 236,716 100 82
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Bonds in foreign currenciesStructured bondsTotal sales
(Million yen) (Million yen)
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
21
Expanding Foreign Stocks
Revenues from foreign stocks
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
(Million yen)
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Revenues from foreign stocks 6,658 903 5,333 80 591
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
22
Recovery of Dealing
Earnings of Proprietary Dealing Division
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
Stock Proprietary TradingBond Proprietary TradingProprietary Trading Profit/Loss
(Million yen)
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Stock Proprietary Trading 1,218 958 2,924 240 305Bond Proprietary Trading 77 39 51 66 131Proprietary Trading Profit/Loss 1,295 998 2,977 230 298
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
23
Growth of Customer Related Trading Revenue
Corporate Assets Division/Corporate Products DivisionRevenues
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Corporate Assets Division 3,294 2,566 2,834 86 110Domestic stocks 1,118 749 658 59 88Bonds 1,429 1,217 1,631 114 134
447 727 1,105 247 152Structured, exchangeable bonds 982 489 526 54 108
Investment trusts 397 233 232 58 100Derivatives 48 135 103 215 76Others 277 222 206 74 93
Corporate Products Division 3,252 4,307 8,019 247 186
Government bonds,
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
24
Cost Control
Selling, General and Administrative Expenses (Consolidated)(Million yen)
FY2005 FY2006 FY2007 FY2008 FY2009 Year on YearApril 1, 2005
March 31, 2006April 1, 2006
March 31, 2007April 1, 2007
March 31, 2008April 1, 2008
March 31, 2009April 1, 2009
March 31, 2010Previous year
= 100Trading-related expenses 5,776 6,769 7,391 6,617 7,754 117Personnel expenses 27,669 25,437 24,942 20,460 24,082 118Occupancy and rental 5,074 5,461 5,758 5,909 5,885 100Operational expenses 3,200 3,524 4,489 5,415 4,307 80Depreciation expenses 832 1,596 2,566 2,456 2,737 111Others 1,718 1,615 1,782 1,687 1,826 108Total SG&A expenses 44,272 44,403 46,931 42,546 46,593 110
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
FY2005 FY2006 FY2007 FY2008 FY2009
(Million yen)
OthersDepreciation expensesOperational expensesOccupancy and rentalPersonnel expensesTrading-related expenses
25
Performance Review of Units
Total Revenue (Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
49,954 32,023 39,465 79 123% 83 78 70
9,995 9,214 17,311 173 188% 17 22 30
Retail Business Unit
Investment Banking Business Unit
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd. (Tokai Tokyo Securities Co., Ltd. started profit center management practice in September 2005, dividing its operation internally into two “companies”.)
Revenues by Business Unit
Others25%
InvestmentBanking
30% Dealing5%
Retail70%
Number of Employeesby Business Unit
377
1,500
InvestmentBanking20%
Retail80%
Assets under Custodyby Business Unit (100 million yen)
11,514
23,373
InvestmentBanking33%
Retail67%
26
Revenue Trend of Investment Banking
Revenues by Division(Million yen)
0
2,000
4,000
6,000
8,000
10,000
12,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
Corporate Assets & Corporate ProductsCorporate SolutionsDealingStock Proprietary TradingBond Proprietary Trading(Million yen)
FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Investment Banking B.U. 9,995 9,214 17,311 173 188
6,547 6,874 10,921 167 159
Corporate Solutions Division 502 294 340 68 116Dealing Division 1,295 998 2,977 230 298
Stock Proprietary Trading 1,218 958 2,924 240 305Bond Proprietary Trading 77 39 51 66 131
1,649 1,047 3,072 186 293Others
Corporate Assets &Corporate Products Division
* Beginning FY2009, the figures of former Corporate Asset Division include those of Corporate Product Division as well.
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
27
Revenue Trend of Retail by Product Group
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Total Revenue 49,955 32,023 40,159 80 125
Domestic Stocks 17,158 10,110 8,736 51 86
% 34.3% 31.6% 21.8%32,796 21,910 31,422 96 143
% 65.7% 68.4% 78.2%Foreign Stocks 4,845 589 3,225 67 547
Bonds 77 59 21 27 36
Foreign Bonds 3,718 5,130 5,941 160 116Investment Trusts 12,678 5,282 13,191 104 250Investment TrustsAgency
6,376 4,139 3,298 52 80
Foreign Exchange 1,617 4,134 4,273 264 103
Insurance 2,335 1,851 811 35 44
Others 1,143 711 655 57 92
Other Instruments
Revenue by Product
0
10,000
20,000
30,000
40,000
50,000
60,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
(Million yen)
Other InstrumentsDomestic Stocks
The relative weight of domestic stocksand other instruments
34.3%
31.6%
21.8%
65.7%
68.4%
78.2%
0% 20% 40% 60% 80% 100%
1-4Q
1-4Q
1-4Q
FY20
07FY
2008
FY20
09
Domestic StocksOther Instruments
28
Retail Trend Per Customer Segment
Customer SegmentNumber of Customers
FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
High Wealth 1,951 957 1,420 73 148% 0.5% 0.2% 0.4%
Wealth 15,620 8,839 12,397 79 140% 3.8% 2.2% 3.2%
Middle 107,968 84,122 95,309 88 113% 25.9% 20.7% 24.5%
General 290,616 313,380 279,153 96 89% 69.8% 76.9% 71.9%
Total 416,155 407,298 388,279 93 95
Assets under Custody(Million yen)
FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
High Wealth 396,452 200,146 286,991 72 143% 14.2% 10.5% 12.3%
Wealth 743,472 415,755 588,021 79 141% 26.7% 21.8% 25.3%
Middle 1,293,136 957,900 1,117,925 86 117% 46.5% 50.1% 48.1%
General 349,928 337,314 331,669 95 98% 12.6% 17.7% 14.3%
Total 2,782,988 1,911,115 2,324,605 84 122
Commissions(Million yen)
FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
High Wealth 6,172 2,916 2,803 45 96% 12.5% 9.0% 7.1%
Wealth 15,662 8,827 10,855 69 123% 31.8% 27.3% 27.5%
Middle 22,873 16,609 21,500 94 129% 46.5% 51.4% 54.4%
General 4,493 3,970 4,365 97 110% 9.1% 12.3% 11.0%
Total 49,201 32,323 39,523 80 122
Number of Customers
Wealth3%
High Wealth0%
General72%
Middle25%
Assets under Custody
Wealth25%
Middle48%
General14%
High Wealth12%
Commissions
HighWealth
7%
General11%
Middle54%
Wealth28%
High Wealth: Holding over 100 million yen in assets under custody
Wealth: 30 million to 100 million yen
Middle: 5 million to 30 million yen
General: less than 5 million yen
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
29
Revenue and Number of Accounts Attained by Each Region, Retail
Revenue by Region Revenue by Region
0
10,000
20,000
30,000
40,000
50,000
60,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
(Million yen)Western JapanCentral JapanEastern Japan
Number of Accountsby Region
050,000
100,000150,000200,000250,000300,000350,000400,000450,000
1-4Q 1-4Q 1-4Q
FY2007 FY2008 FY2009
(Accounts) Western JapanCentral JapanEastern Japan
(Million yen)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Eastern Japan 15,405 9,040 9,945 65 110% 31.1% 28.1% 25.1%
Central Japan 24,242 16,967 21,553 89 127% 48.9% 52.7% 54.4%
Western Japan 9,912 6,211 8,095 82 130% 20.0% 19.3% 20.4%
Total 49,559 32,218 39,594 80 123
Number of Accounts by Region
(Accounts)FY2007 FY2008 FY2009 FY09/FY07 FY09/FY08
1-4Q 1-4Q 1-4Q FY20071-4Q=100
FY20081-4Q=100
Eastern Japan 122,855 93,716 93,342 76 100% 30.6% 24.9% 24.8%
Central Japan 201,713 210,523 211,437 105 100% 50.2% 55.9% 56.3%
Western Japan 77,161 72,570 70,982 92 98% 19.2% 19.3% 18.9%
Total 401,729 376,809 375,761 94 100
* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.
30
Table of Ranking (Ordinary Income)*1 US GAAP Based
*2 Non-Consolidated Figures
(100 million yen)
Securities Company Total Revenues Ordinary Income Net Income1 Nomura Holdings *1 13,567.5 1,052.5 678.02 Daiwa Securities Group 5,379.2 1,029.2 434.33 ◎ Nikko Cordial Securities *2 1,905.6 453.1 583.24 ◎ Mitsubishi UFJ Securities 3,438.2 410.2 287.55 ◎ Mizuho Securities 3,121.6 330.7 1,270.66 ◎ SMBC Friend Securities 674.8 231.0 129.77 △ SBI Securities 674.8 231.0 129.78 Tokai Tokyo Financial Holdings 585.0 120.1 71.69 △ Matsui Securities 243.5 115.5 76.610 Okasan Securities Group 662.4 82.5 27.911 Kyokuto Securities 153.0 75.2 38.112 ◎ Mizuho Investors Securities 516.7 74.8 66.513 △ Rakuten Securities Holdings 230.2 61.4 65.614 △ kabu.com Securities 150.8 49.1 30.915 △ Monex Group 225.0 44.8 37.8
FY2009(April 1, 2009-March 31, 2010)
◎:Bank-affiliated companies △:Internet-based Operation (Tokai Tokyo Financial Holdings prepared the table compiling from publicly disclosed financial data of each company)
31
Trend of Stock Price
(Tokai Tokyo Financial Holdings prepared both graphs)
Trend of Stock Price of Each Peer(Levels are expressed in relative indices
with each stock price of March 31, 2009 as 100)
80
100
120
140
160
180
200
220
240
260
03/31/09 06/30/09 09/30/09 12/31/09 03/31/10
Tokai TokyoNomuraDaiwaMizuhoOkasan
Nikkei Stock Average(Levels are expressed in relative indices
with the Nikkei Stock Average of March 31, 2009 as 100)
90
100
110
120
130
140
150
03/31/09 06/30/09 09/30/09 12/31/09 03/31/10
32
Comparison; Stock Price and Related Figures
Stock Price(24/5/2010) 326 557 403 88 364 573
PER 12.38 25.69 15.26 16.30 26.71 616.13 118.74
PBR 0.80 0.96 0.76 1.19 0.77 0.93 0.90
EPS 26.33 21.68 26.41 5.40 13.63 0.93 15.73
Dividend Yield 3.85 1.16 2.64 0 1.68 3.76 2.18
Dividend 15.0 8.0 13.0 0 7.5 24.0
OkasanSecurities
GroupIchiyoshi 6-Company
AverageNomuraHoldings
DaiwaSecuriteis
Group
MizuhoInvestorsTokai Tokyo
* The figures of Nomura Holdings are US GAAP based* EPS is the figure covering the Fiscal Year ending in March 2010* PER=(Stock Price As of May 24, 2010)÷EPS* Dividend is the projected annual dividend for the Fiscal Year ending in March 2010* Dividend Yield=(Projected Annual Dividend for the Fiscal Year ending in March
2010)÷(Stock Price as of the End of March 2010)
(Tokai Tokyo Financial Holdings prepared the data based on each company’s publicized information and those derived from QUICK)
33
TT Revolution ~ What We Aim to Accomplish ~
TT RevolutionAim to elevate ourselves to a financial service group
built around securities housethat can weather adversity and outperform
others in savage competition
□Assets under Custody: Aim to double the current asset size to 6 trillionyen or more including both consolidatedcompanies and equity method affiliates of the Group
□Financial Performance Target: Aim to hit ROE of 10% or higher on consolidated basis
34
Assets under Custody
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
FY2005 FY2006 FY2007 FY2008 FY2009 FY2011
(100 million yen)
OthersInvestment TrustsBondsStocks
Three-year Business Plan Target
35
Return on Equity
0.0
5.0
10.0
15.0
20.0
25.0
FY2005 FY2006 FY2007 FY2008 FY2009 FY2011
(%)
Three-year Business Plan Target
36
Prioritize Young Employee
■ Distribution of Employees in Retail by the Length of Service (As of Sept. 2009)
[Employees joined in 2006 or before] 50%
[Those joined in 2007 or later] 50%
* Data excludes branch managers and section managers
Joined in 200714%
Joined in 200819%
Employeesjoined in 2009
17%
Joined in 2006or before
50%
* All the data here cover Tokai Tokyo Securities alone.
37
Streamlining Retail Network
Improved service capability by consolidating the retail network;Tokyo Metropolis Area:
Mita Branch consolidated into Tokyo Sales Department in September 2009, and bothShimokitazawa and Den’en Chofu Branches likewise into Shibuya Branch in November 2009
Nagoya Area:Relocation and renaming of Sakae BranchIt will be located in the LACHIC Building in Sakae Area of Nagoya under the new branch name of “Nagoya Branch” absorbing Nagoya Chuo Branch effective May 15, 2010
Improved service capability by consolidating the retail network;Tokyo Metropolis Area:
Mita Branch consolidated into Tokyo Sales Department in September 2009, and bothShimokitazawa and Den’en Chofu Branches likewise into Shibuya Branch in November 2009
Nagoya Area:Relocation and renaming of Sakae BranchIt will be located in the LACHIC Building in Sakae Area of Nagoya under the new branch name of “Nagoya Branch” absorbing Nagoya Chuo Branch effective May 15, 2010
38
Stepped-up Efforts toward High Wealth Clients
Ensured higher service capability dedicated to the wealthy clients by the new Main Office Sales Unit
Deployed the service by Premier Executive Advisors focusing on the wealthy clients
Active use of the expertise of Tokai Tokyo SWP Consulting
Sponsoring various seminars and events aimed to capture interest of the Clients
Launching “The Premier Membership” service
Ensured higher service capability dedicated to the wealthy clients by the new Main Office Sales Unit
Deployed the service by Premier Executive Advisors focusing on the wealthy clients
Active use of the expertise of Tokai Tokyo SWP Consulting
Sponsoring various seminars and events aimed to capture interest of the Clients
Launching “The Premier Membership” service
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Upscale Product Portfolio and Enhance Information Distribution
Put up Asian Equity Marketing Department and US & European
Equity Marketing Department
Expand International Network
Started Tokai Tokyo Internet Broadcasting
Put up Asian Equity Marketing Department and US & European
Equity Marketing Department
Expand International Network
Started Tokai Tokyo Internet Broadcasting
Featuring wealth of information covering market, Tokai Tokyo’s products, and useful guide to investors
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Blue Ocean Strategy
Top 10 Japanese Regional Banks Ranked by Deposit BalanceMarch 31, 2009
(100 million yen)
Rank Name of Institution Deposit Balance1 The Bank of Yokohama 101,5822 Fukuoka Financial Group 99,3263 Hokuhoku Financial Group 85,9064 The Chiba Bank 85,0135 The Shizuoka Bank 71,0086 Yamaguchi Financial Group 68,4427 Joyo Bank 65,4758 Sapporo Hokuyo Holdings 64,4559 The Nishi-Nippon City Bank 62,047
10 Bank of Kyoto 55,279:Partner Financial Institutions
(Tokai Tokyo Financial Holdings prepared the table compiling from publicly disclosed financial data of each company)
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Alliance with Regional Banks ~ Rationale ~
Capture Return as a ShareholderCapture Return as a Shareholder
Sourcing Transaction FlowSourcing Transaction Flow
Cost Sharing Cost Sharing
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Progress on Alliances
YM Securities Co., Ltd.In January 2010, opened Higashi Hiroshima Branch and its satellite outlet, Momiji Saijo Plaza to reinforce operation in Hiroshima market Referral-induced new account expansion helped continuing increase in Asset under Custody
(March 31, 2010)Assets under custody
(Million yen) Accounts Branches Employees
196,740 26,154 13 143
Hamagin Tokai Tokyo Securities Co., Ltd.The New Medium Term Management Plan started in April 2010Odawara Branch opened in October 2009 as the second jointly-run branch. Planning to establish alliance infrastructure through the network of 15 branches by the end of 2012, which operate in concert with the bank’s 31 branches across Kanagawa Ken. Bolstering the success rate of customer referral activity by the use of Yokohama Bank’s EBM (event driven marketing ).
(March 31, 2010)Assets under custody
(Million yen) Accounts Branches Employees
174,992 30,223 9 172
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Nishi-Nippon City Tokai Tokyo Securities ~ Profile ~
Started its operation with 3 operating offices including two newly set up and another taken over from Tokai Tokyo Securities Co., Ltd. by way of company split
Profile
Headquarters 1-3-6 Hakata Ekimae, Hakata Ku, Fukuoka City, Fukuoka Prefecture
Branch Network Main Operating Office & Kitakyushu Branch, (Both Newly opened) Tenjin Branch (Taking over the operation of Fukuoka Branch of Tokai Tokyo Securities Co., Ltd.)
Capital ¥ 1,575 MillionShareholders Nishi-Nippon City Bank 60%, Tokai Tokyo Financial
Holdings 40%Executives andEmployees 71Date of Incorporation September 30, 2009
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The Merger between Tokai Tokyo Securities with Toyota FS Securities, and the Subsequent Strategy
Toyota Financial Services SecuritiesToyota Financial Services SecuritiesEmployee: 145 Customer Base: Approx. 110 Thousand AccountsEmployee: 145 Customer Base: Approx. 110 Thousand Accounts
Assets under Custody: Approx. Assets under Custody: Approx. ¥¥560 Billion Branch Network: 5 Branches560 Billion Branch Network: 5 Branches
MergerMerger(As of the end of March 2010)
Tokai Tokyo Securities Tokai Tokyo Securities Employee: 2,412 Customer Base: Approx. 510 Thousand AccountsEmployee: 2,412 Customer Base: Approx. 510 Thousand Accounts
Assets under Custody: Approx. Assets under Custody: Approx. ¥¥4 Trillion Branch Network: 70 Branches4 Trillion Branch Network: 70 Branches
Toyota Business Unit
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The Merger between Tokai Tokyo Securities with Toyota FS Securities, and the Subsequent Strategy
Approaching the employees of Toyota group and its related companies with product like “Tsumitate”, a monthly accumulative purchase of Investment Trust Certificate with automatic fund deduction from their personal bank accounts and other products fitting to this specific clientele segmentDrive marketing toward new car buyers via auto dealers as intermediaries with the giveaway of some selected fund products for personal investment and other sales promotional ideas
Approaching the employees of Toyota group and its related companies with product like “Tsumitate”, a monthly accumulative purchase of Investment Trust Certificate with automatic fund deduction from their personal bank accounts and other products fitting to this specific clientele segmentDrive marketing toward new car buyers via auto dealers as intermediaries with the giveaway of some selected fund products for personal investment and other sales promotional ideas
Deploying the unique business modelDeploying the unique business model
Acquisition of a new customer base that includes Toyota group employeesBusiness expansion of corporate sector by strengthening the relationship with various Toyota group companies
Acquisition of a new customer base that includes Toyota group employeesBusiness expansion of corporate sector by strengthening the relationship with various Toyota group companies
Make the most of Toyota Brand AwarenessMake the most of Toyota Brand Awareness
Higher-caliber operational network for Mikawa-region market to be made possible through the synergy effect of combining Toyota FS Securities’ network and Tokai Tokyo Securities’Premier-Salon in *Mikawa region now under consideration
* Mikawa is the region where Toyota group companies and their employees’ residences are concentrated.
Higher-caliber operational network for Mikawa-region market to be made possible through the synergy effect of combining Toyota FS Securities’ network and Tokai Tokyo Securities’Premier-Salon in *Mikawa region now under consideration
* Mikawa is the region where Toyota group companies and their employees’ residences are concentrated.
Effective use of Branch NetworkEffective use of Branch Network
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Five Key Success Factors
We conducted major customer survey six times in fiscal 2009We use the survey result to identify the service and product we must offer to secure customer loyalty, not just for short term customer satisfaction but for never ending process of service capability improvement.
We conducted major customer survey six times in fiscal 2009We use the survey result to identify the service and product we must offer to secure customer loyalty, not just for short term customer satisfaction but for never ending process of service capability improvement.
With a view to uplift corporate value and organizational strength, we extend communication toward shareholders, customers, communities and employees through PR, IR and business activities.
With a view to uplift corporate value and organizational strength, we extend communication toward shareholders, customers, communities and employees through PR, IR and business activities.
We plan engaging ourselves in high profile community rooted activities in Nagoya that include; Sponsoring Nagoya City’s 400th anniversary event, Launching Tokai ETF, and Supporting Aichi Prefectural Office with their prefecture-wide campaign for “Casual Kindness Dissemination.”
We plan engaging ourselves in high profile community rooted activities in Nagoya that include; Sponsoring Nagoya City’s 400th anniversary event, Launching Tokai ETF, and Supporting Aichi Prefectural Office with their prefecture-wide campaign for “Casual Kindness Dissemination.”
Customer LoyaltyCustomer Loyalty
CommunicationCommunication
Super Community HouseSuper Community House
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Contact
General Planning Department, Tokai Tokyo Financial Holdings, Inc.TEL: 03-3517-8618 FAX: 03-3517-8314E-mail: [email protected]
Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co., Ltd. (former Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it over. The Group (Tokai Tokyo Financial Group) at the same time shifted to a holding company system.
Effective the same date, the Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd. changed their corporate names to Tokai Tokyo Financial Holdings, Inc., and Tokai Tokyo Securities Co., Ltd. respectively.
The result for the fiscal year ended on March 31, 2009 or any earlier date account for the operation of the former Tokai Tokyo Securities Co., Ltd. under then existing organizational structure.
This material is intended to provide information regarding the Company’s most recent operational result and NOT to solicit investment in securities issued by the Company.