A n a ly s is of B u s i ne s s Pe rfo rm a nc e a nd
Fina n cia l R e s u l ts
Business Overview
Fiscal 2008 Review

During the reporting period ended March 31, 2009, theJapanese economy faced severe headwinds. The firsthalf brought a fall in exports as the global economy
decelerated under the weight of the subprime crisisand soaring oil and raw material prices. The situation
became worse in the second half, when the economy
slowed down significantly after the bankruptcy ofmajor financial institutions in the United States andthe dramatic rise in the yen.
In securities markets, the Nikkei Average dippedb e l ow t h e ¥ 7 , 0 0 0 m a r k i n t h e s e c o n d h a l f , a s t h efinancial crisis that began in the United States
deepened and became protracted.
Ye t w i t h a n ave r a g e d a i l y t r a d i n g vo l u m e o f 2
b i l l i o n s h a r e s o n t h e To k y o S t o c k E x c h a n g e ,transaction activity remained lively, and the number ofshares handled by JASDEC’s depository and bookentry transfer system maintained momentum.
Furthermore, in January 2009, the dematerializationof the listed stock certificates was implemented, andthe new Book-entry Transfer System for Stocks, etc.
came on stream.

Financial Results
Operating Income

Against this backdrop, JASDEC booked a combined
total of ¥19,585 million in (1) income from custodyand book-entry transfer of stocks, comprising ¥10,282
million in commissions on book-entry transfer, and¥4,534 million in income from custody operations, and(2) the new book-entry transfer services (launchedJanuary 5, 2009), comprising ¥3,005 million incommissions on book-entry transfer, ¥724 million inaccount management fees, and ¥1,039 million intransfer system usage fees).
This compares with previous-term income from
custody and book-entry transfer of stocks of ¥19,384
million (¥13,603 million in commissions on bookentry transfer, and ¥5,781 million in income from
custody operations), for an increase of ¥200 million(up 1.0% year-over-year).
Operating income prior to commission rebates
amounted to ¥28,625 million (up 2.1% year-over-year)
and commission rebates to ¥1,461 million (up 27.1%).
As a result, operating income totaled ¥27,163 million(up 4.4%).
Operating Expenses

O p e r a t i n g ex p e n s e s f o r fi s c a l 2 0 0 8 a m o u n t e d t o¥24,454 million (up 12.5% year-over-year), due to anincrease in costs on upgrading computer systems forthe dematerialization of stock certificates.
Net Income

Net income for fiscal 2008 amounted to ¥1,333 million(down 13.8% year-over-year).
Earnings per share was ¥156,934.33.

48J a p a n Securi ti es Depo si to ry C enter, Inc. A nn u al R e p ort 2 0 0 9

Financial Condition
Total assets as of March 31, 2009 were up by ¥6,775
million from the previous year-end to ¥61,615 million.
This was mainly due to increased value of software
following investments required for dematerializationof stock certificates, and system upgrades.
Net assets at the fiscal year-end increased ¥994
million year-over-year to ¥18,890 million, due
primarily to an increase in retained earnings.
Net cash provided by operating activities during
this financial year came to ¥6,411 million, which
includes income before income taxes of ¥2,331
million, depre ciation and amortization of ¥6 , 3 6 2
million, and income tax payments of ¥1,788 million.
Net cash used in investing activities amounted to¥11,523 million, mainly as a result of capital
investment in a system for dematerialization for stock
certificates.
Net cash provided by financing activities amounted
to ¥5,652 million, as cash outflow on dividend
payments was more than offset by short-term bankborrowings.
As a result of the foregoing, cash and cash equivalents
as of the fiscal year-end stood at ¥2,355 million, up by¥539 million from the previous year-end.
As Japan’s central securities depository, JASDEC iscommitted to stable financial management with asound financial position and adequate operating cash
flow as it goes about its public mission of providing
reliable and error-free infrastructure for securities
clearing and settlement.

Financial results (on a consolidated basis)
Operating income
Income from operation(Million yen)

30,00027,16326,022
22,55921,74520,00010,0004,777

0

5th

4,635

6th

4,368

7th

2,6178th(business term)

Net income
Net income per share(Million yen)

(Yen)

4,000 365,197.98

400,000

311,995.13

3,000

3,121

182,082.62

2,000

300,000

156,934.33

2,651

200,000

1,547

1,333

1,000
0

100,000
5th

6th

7th

8th0

(business term)

Total assets(Million yen)

80,000Net assets

68,51756,03760,00061,61554,83940,00020,000014,352

16,68917,897

5th

6th

7th

18,8908th(business term)

J ap an S e c urit ie s De p os it ory C e nt e r, I nc . A nnu al R e p ort 2 0 0 949