Japan Securities Finance Co., Ltd.
3Q FY2020
Financial Results Presentation

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜Table of Contents
 １．Executive summary (Consolidated)Ｐ３

 ２．Summary Financial Results for ３Q, FY2020

Ｐ４

 ３．Summary Financial Results for 3Q, FY2020（JSF parent）

Ｐ５ ４．Financial Highlight（Margin Loan Business）

Ｐ６

 ５．Financial Highlight（Securities Financing）

Ｐ７

 ６．Financial Highlight（Securities Investment of JSF parent）

Ｐ８ ７．Summary Financial Results for 3Q, FY2020（ JSF Trust Bank）

Ｐ９

 ８．Balance Sheet Summary (Consolidated)

Ｐ１０

 ９．Estimated Figures for FY2020

Ｐ１１

 10. Dividend and Share Buyback Program (historical)

Ｐ１２

 Appendix

Ｐ１３〜

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜

2

１．Executive Summary (Consolidated)（¥ mil）

Operating
Revenues

FY2020
１Q-3Q

23,175

YoY ⊿

＋867

⊿％

Highlight＋3.9％

 Margin Loan Business resulted decrease（△11.4％）due to a decrease of balanceof Stock Loan
 Revenue of subsidiary JSFTB decreased(△20.3%)due to a decrease in gains onsales of bonds.
 Securities Financing saw a significant
increase in revenue driven by Bond
Lending (+53.1％）

 Operating expenses increased due toan increase in borrowing fees forsecurities, but general andadministrative expenses decreased due
to an increase in reversal of allowancefor doubtful accounts.

Operating
Income4,086＋572 ＋16.3％

Recurring
Income4,488＋406 ＋10.0％  Share of profit of entities accounted forNet
Income

3,257

＋241

using equity method decreased.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved＋8.0％〜 All For Securities Market 〜3１．Summary Financial Results for 3Q FY2020
Consolidated（¥ mil）

Operating
Revenues

FY2020
１Q-3Q

YoY.⊿

Parent
(%⊿)

JSF

867

(＋3.9%)

20,692

1,327

ExceptPremium Charges

17,6111,854(＋11.8%)15,1282,314

Operating Expenses

13,309665(＋5.3%)

13,025

1,406

ExceptPremium Charges

7,758

1,661

(＋27.2%)

7,474

2,402

General &Administrative Expenses

5,779

▲370

(△6.0%)

5,039

Operating Income

4,086

572

(＋16.3%)

Recurring Income

4,488

406

(＋10.0%)Gain or Loss inEquity-Method

79

▲107

(△57.6%)

ー

36

3,257

241

Net Income

Nihon Building

YoY.⊿

YoY.⊿

YoY.⊿

23,175Extraordinary
Profit or Loss

JSF Trust Bank

1,927

▲426

970

10

407

▲696

14

▲1

▲162

526

▲216

501

2

2,628

83

992

486

454

9

4,145

1,147

996

467

560

▲0

(ー)

―

―

―

―

―

36

(＋8.0%)

3,322

1,100

777

327

370

22

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜

4２．Summary Financial Results for 3Q FY2020（JSF parent）
Key Points

Japan Securities Finance（parent）*excluding premium charge（¥ mil）

FY2020
1Q-3Q

YoY.⊿

●Operating Revenues(%⊿)

Operating Revenues*

15,1282,314(＋18.1%)Margin Loan Business*

3,152

▲139

(△4.2%)

Securities Financing

9,301

3,226

(＋53.1%)Others

2,675

▲771

(△22.4%)

Operating Expenses*

7,474

2,402

(＋47.4%)General &Administrative Expenses

5,039

▲162

(△3.1%)

Operating Income

2,628

83

(＋3.3%)

Recurring Income

4,145

1,147

(＋38.3%)Extraordinary
Profit or Loss

―

―

(ー)

Net Income

3,322

1,100

(＋49.5%)

Copyright Japan Securities Finance Co., LTD. All Rights Reserved Up ¥2,314 mil (+18.1%) YoY driven
by Securities Financing.
̶ Margin Loan Business decreased 4.2%.
Though Margin Loan Balance wasalmost flat as the same period of theprevious year, Stock Loan balance
decreased.
̶ Securities Financing saw a significant
increase in revenue driven by strong
Bond Lending Business andoutstanding lending to some Financial
Instruments Business Operator.
̶ Others(Securities investment) dropped
due to a decrease of gain on sales of
JGBs, etc.
※For details of segments, see “Financial
Highlights for 3Q, FY2020(P6-P8)”●Operating Expenses

̶ Up ¥2,402mil (+47.4%) YoY
̶ Fees on borrowing securities andinterest on payables under repurchaseagreements in Bond Lending●Recurring Income/Net Income

̶ Significant increase in profit due toincrease in dividend income from two
consolidated subsidiaries (eliminationon consolidated basis).

〜 All For Securities Market 〜

5

３．Financial Highlight （Margin Loan Business）
Margin Transactions trends slowed due to factors such as investorsʼ wait-and-see
approach and position unwinding, though stock price rose even higher toward theend of the year.

Though Margin Loan Balance increased slightly compared the same period of theprevious fiscal yea, Stock Loan balance declined.
FY2019（\ bn、%）

1Q

2Q

1H

YoY

FY2020

3Q

YTD

4Q

full year

1Q

2Q

1H

3Q

YTD

3Q

YTD

Margin Loan

201

202

202

226

210

248

219

199

219

209

223

214

▲2

3

Margin Loan Rate

0.60

0.60

0.60

0.60

-

0.60

-

0.60

0.60

0.60

0.60

-

-

-

Stock Loan

332

350

341

383

355

268

333

295

333

314

316

315

▲66

▲40

Margin Loan（FY2019）
Margin Loan Rate（FY2019）

¥ tri
0.6

1Q Margin Loan

FY20︓¥199bn
FY19︓¥201bn

2Q Margin Loan

FY20︓¥219bn
FY19︓¥202bn

Margin Loan（FY2020）
Margin Loan Rate（FY2020）

Stock Loan（FY2019）
Stock Loan Rate (FY2019)

¥ tri
1.5%

0.6

1Q Stock Loan
FY20︓¥295bn
FY19︓¥332bn

3Q Margin Loan

FY20︓¥223bn
FY19︓¥226bn

2Q Stock Loan
FY20︓¥333bn
FY19︓¥350bn

Stock Loan（FY2020）
Stock Loan Rate (FY2020)

1.5%

3Q Stock Loan
FY20︓¥316bn
FY19︓¥383bn

0.4

1.0%

0.4

1.0%

0.2

0.5%

0.2

0.5%

1Q-3Q Margin Loan

4Q Margin Loan

FY20︓¥214bn
FY19︓¥210bn

0.0

0.0%
Apr

May

Jun

Jul

Aug

Sep

1Q-3Q Stock Loan
FY20︓¥315bn
FY19︓¥355bn

FY19︓ ー
FY19︓¥248bn

Oct

Nov

Dec

Jan

Feb

0.60%
Copyright Japan Securities Finance Co., LTD. All Rights Reserved

Mar

0.0
Apr

May

Jun

Jul

Aug

Sep

4Q Stock Loan
FY20︓ ー
FY19︓¥268bn

Oct

Nov

Dec

Jan

Feb

0.0%

Mar

0.40%

〜 All For Securities Market 〜

6５．Financial Highlight （Securities Financing）


Strong Bond Lending drive “Securities Financing Business”

Loan to Securities Companies also steady as a result in the balance ofequity repo and loans to FIBOs.
(¥ mil)Type of transaction

FY2020
1Q-3Q

YoY⊿

YoY%

Securities Financing

Loans for Negotiable margintransaction

53▲6△11.2％

 The balance of loans outstanding
decreased due to negotiable margintransactions decreased.

Loans to Securities Companies*

597

124

+26.2％

 Increased outstanding balance ofequity repo denominated in foreign
currencies and loans to some FIBOs**.

Loans to Individual Investors or
Firms

351

▲20

△5.5％

 Outstanding of COM-STOCK Loan
remained sluggish.

General Stock Lending

730

▲3

△0.5%

 Borrowing demands for mainly failcover increased.

7,568

3,133

＋70.6%

 Both outstanding of Gensaki
transactions and Repo transactions
increased significantly.

9,301

3,226

＋53.1%

Bond Lending

Total Revenues* Equity Repo, General Loans, Stabilizing funding loan, etc.
** FIBOs : Financial Instruments Business Operators
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜

7

４．Financial Highlight（Securities Investment of JSF parent）
Resulted in decrease due to decrease in gain on sales of JGBs and theimpact of foreign exchange gains concerning foreign currency.

Revenues from securities investment（JSF）
1Q-3Q FY2020
Yen-based
Domestic Bonds
Others※In foreign currencies
Total

YoY

¥ 2,120 mil▲¥ 404 mil¥ 790 mil▲¥ 250 mil¥ 1,330 mil▲¥ 153 mil¥ 528 mil▲¥ 372 mil¥ 2,649 mil▲¥ 777 mil

Transition of investment portfolio
EquityForeign Bonds

3.1%
9.3%
6.9%

80%
80.7%

70%
Mar.2018

Mar.2019

ref. Trend of Interest Rate and Hedge Cost (JPY v.s. USD, EUR)
Trend of Interest Rate
US

Germany

Japan

3.0%

2.0%

2.0%

1.0%

1.0%

0.0%

0.0%

▲1.0%

▲1.0%
2013

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

Mar.2020

Dec.2020

source）Bloomberg

Trend of hedge cost

4.0%

3.0%

2013 2014 2015 2016 2017 2018 2019 2020

Domestic Bonds

90%
90%

※ Investment Trust, etc.

4.0%

Others

100%

USD3M
EUR3M

2014

2015

2016

2017

2018

2019

2020

〜 All For Securities Market 〜

8５．Summary Financial Results for 3Q, FY2020（JSF Trust Bank）

Highlights

 Trust charges remained stable, contributing from strengthening custodian type trust service.
 Interest income resulted in a modest increase due to an increase in outstanding of loan balance
and investment securities.
 Both gains on sales of bonds and costs of unwinding IRS dropped.
 Increases were posted in Recurring Income and Net Income

JSF Trust Bank（¥ mil）

Recurring Revenue

FY2020
1Q-3Q

(%)

2,159

▲217

(△9.1%)

787

161(+25.8%)1▲661(△99.7%)

1,163

▲684

(△37.0%)ー▲632(△100.0%)

Recurring Income

996

467

(＋88.2%)Net Income

777

327

(＋72.7%)

Trust charges
Gains on sales ofbonds

Recurring Expenses
Losses fromderivatives¥【Point of Trust Charge】

YoY

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

Trust charges increased
contributing from strengthening
custodian type trust service(trusts for the separate
management of money andsecurities, ABL trust, etc).

(¥ mil)〜 All For Securities Market 〜

9６．Balance Sheet Summary（end of Dec-2020, consolidated）\mil
Dec-20Total assets
Cash & Deposit
Short-term
investments

10,160,548
1,379,915
49,958Change from
Mar-20346,053
79,979 Deposit at BOJ▲ 18,333

JGB and other bonds (Maturity: 1year
or less)

Margin loan / Loans for negotiable
138,843 margin transactions / General loans /Trust bank loans

Short-term loans
receivable

826,522

Receivables underresale agreements

2,486,566▲ 260,829

Collateral money of
securities borrowed

4,249,479

371,653

Collateral money of bond borrowing
Collateral money of stock borrowing

Investments insecurities

869,357

79,175

JGB and other bonds (Maturity: morethan 1year), Stock

Total liabilities

10,029,824

342,016

Call money

985,300▲ 191,495

Short-termborrowings

130,509

29,036

Commercial Paper

481,000

115,000

Payables under
repurchase agreements

4,531,941

608,527

2,528,448▲ 575,580

1,221,642

352,153

130,724

4,037

Collateral money
received of securities
lent
Borrowed money fromtrust accountTotal net assets

Features of Assets
Comprise Margin loans (short-termloans receivable) and deposits incurrent account balance at BOJ (cashand deposits) that are changing by
the day, collateral deposited for the
procurement of securities (Collateralmoney of securities borrowed), andsecurities held for the purpose of
efficient use of funds.
Cash and cash equivalents maychange significantly depending on thestatus of standby funds in the trust
account of JSF Trust and Banking Co.,
Ltd. and the status of cash
management of the Group as a whole.

Features of Liabilities
Bank borrowing
Market operation by BOJ

Collateral money of bond lending
Collateral money of stock lending

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

In addition to market funding, suchas call money and commercial paper,
which can be adjusted daily toaccommodate assets changing by theday, collateral deposits received whenlending securities (collateral money
received of securities lent).
【ref】 Capital Adequacy Ratio (FIEA base)at the end of Dec 2020︓535％
The increase from the end of Sep,2020 (343%)
is due to a partial revision of the calculation
method〜 All For Securities Market 〜 10

９．Estimated Figures for FY2020
Precondition Balance of Margin Loans
FY2020 Precondition（¥ mil）⊿ fromprev. EF

Operating Income

4,600

470

300

Recurring Income

5,300

405

300

Net Income

3,700

143

200

Operating
Income

2,900

▲11

200

Recurring
Income

4,500

1,067

200

Net Income

3,500

1,009

200

Recurring
Income

1,125

504

125

Net Income

758

261

68

Operating
Income

570

▲29

ー

Recurring
Income

685

▲43

ー

Net Income

450

▲8

ー

Matching¥120bnStock Loan
¥310bnJSF（Reference）
FY2019 Results

JSF
Trust andBankingOver-lentOver-lent
Stock Loan
Margin Loan
¥195bn¥81bn

Nihon
Building

Matching¥138bnMargin Loan Stock Loan
¥333bn¥219bnYoY.⊿Consolidated

Over-lentOver-lent
Stock Loan
Margin Loan
¥190bn¥10bn

Margin Loan
¥220bnFY2020Estimated
Figures

Preconditions of Loans for Margin Transactions●Loan Rate ︓0.60％,●Interest on Collateral Money ︓0%,●Lending Fee ︓0.40％

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 11

10. Dividend and Share Buyback Program (historical)
FY
2020

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

¥15

¥16

¥18

¥26

¥22

¥22

¥24

(shs)

7.46mil

3mil

0.63mil

1.5mil2.0mil1.0mil―（amount）¥4.6bn¥1.9bn¥0.3bn¥0.9bn¥1.2bn¥0.5bn―<Consolidated> : Net income¥3.5bn¥2.6bn¥3.0bn¥4.2bn¥3.7bn¥3.5bn¥3.7bn*

: EPS

¥33.9

¥26.9

¥31.9

¥44.2

¥40.0

¥38.4

¥40.3*

: DPR

44.2%

59.5%

56.4%

58.8%

55.0%

57.2%

59.5%*

173.9%

133.1%

66.3%

79.3%

87.8%

71.0%

59.5%*

Annual Dividend per share
Share Buyback(reference) Total Return Ratio

Forecast* Net income is a estimated figure released on 11th-Nov. EPS/DPR are calculated base on the estimated figure.

＜ref＞ Interim(result) and Year-end dividend (forecast) FY2020
Revised Forecast

Previous Forecast（Nov-2020）

Results for FY2019

CompareCompare¥ 24（forecast）

¥ 22

＋¥ 2

22円

＋¥ 2

Interim¥ 11 （result）

¥ 11

―

11円

―

Year-End¥ 13（forecast）

¥ 11

＋¥ 2

11円

＋¥ 2

59.5％（forecast）

57.7％

―

57.2％

―

AnnualDPR

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 12Appendix
 Return to shareholders
 The Trend of Financial Result (consolidated) Breakdown of Operating Revenues by business(Historical data) Breakdown of Operating Revenues by business Analysis of YoY Change in Operating Revenue bybusiness (１Q-3Q)
 Outstanding Balance of Transactions by Group
Business Margin Transactions & Loans for Margin transactions
 Structure of Margin Transaction & Loans for Margin
Transactions
 Revenue structure of Loans for margin transactions

Copyright Japan Securities Finance Co., LTD. All Rights Reserved Margin Loan Rates
 Features of Balance Sheet (Consolidated) Securities Holdings
 JSF Trust Bank (Loan Balance) The 6th mid-term Management Plan I〜Ⅵ
 Our Group Companies Rating Information
 ESG/SDGs Initiatives
 Our Corporate Philosophy and History to Date
 Characteristics of Securities Finance Company
 Our Business Field (image chart)〜 All For Securities Market 〜 Return to Shareholders
1

Basic Policy2Retain solid equity capital to secure the financial health and management
stability that society demands of the company as the infrastructure of securities
market, and to ensure profits are returned to shareholders by comprehensively
considering revenues environment or investment plans. etc. (medium-term
management plan, management policy)
Based upon this policy, we will strive to place more importance on shareholder
return.

Shareholder Return Policy（released on 30 Apr 2020）(１) Dividend Payment PolicyOur policy is that the consolidated payout ratio, as a standard that reflects ourbusiness performance, shall not fall below the 60% level and that we shall strive toprovide stable dividends that are not temporarily affected by earnings fluctuations.

(２) Share Buyback PolicyWith a view to offering even more rewarding returns to shareholders, we will buy
back shares as appropriate while comprehensively considering the company's
financial situation, equity capital levels, and stock price levels.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 14 The Trend of Financial Result (consolidated)¥ mil
FY2015FY2016FY2017FY2018FY20191Q-3Q

FY2019FY2020
1Q-3Q

22,03523,06626,33324,321

22,307

29,101

23,175

16,16016,522

18,38318,60315,756

20,846

17,611

11,537

11,892

13,33012,284

12,643

16,835

13,309Ex Premium charges

5,672

5,358

5,385

6,566

6,097

8,585

7,758

General & Administrative
Expenses

7,939

8,371

9,121

8,056

6,149

8,136

5,779

Operating Income

2,558

2,802

3,881

3,981

3,514

4,129

4,086

54

92

123

248

186

306

79

3,349

3,611

4,685

5,046

4,081

4,894

4,488

−

▲52

131

▲41

▲36

▲36

−

2,645

3,078

4,225

3,765

3,015

3,556

3,257

Operating
Revenues
Ex Premium charges

OperatingExpensesGain or Loss inEquity-Method

Recurring Income
Extraordinary
Profit or LossNet Income

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 15 Breakdown of Operating Revenues by business(Historical data)\ mil

3Q FY2019

Securities Finance BussinessMargin Loan Business
Interest on Loans
Interest on collateral money of securities borrowed
Fees on Lending Securities
Premium Charges
Lending Fees
Securities Financing
Loans for Negotiable Margin Transactions
Loans to Seurities Companies
Loans to Individual Investors or Firms
Stock Lending
Bond Lending
OthersBond Investment (Parent only)

Trust Business
Interest on Loans
Trust Charges
Bond Investment

Real Estate Management Business
Operating Revenues(excluded Premium Charges)
Copyright Japan Securities Finance Co., LTD. All Rights Reserved

FY20193Q FY2020

19,35725,36920,6789,843(44.1%)
1,022

12,517(43.0%)
1,420

8,716
(37.6%)
1,047

969

1,178

888

7,675
6,551
1,123
6,066
(27.2%)
59
473
371
734
4,426
3,447
(15.5%)
3,426

9,662
8,255
1,407
8,835
(30.4%)
80
737
494
1,015
6,507
4,016
(13.8%)
3,983

6,573
5,564
1,009
9,287
(40.1%)
53
597
351
730
7,554
2,675
(11.5%)
2,649(10.2%)
35
578
1,627

(9.8%)
50
784
1,950

(7.8%)
59738
985(3.0%)(3.0%)(3.0%)

22,30715,75629,101
20,84623,175
17,611

2,277

673

2,832

899

1,814

681

〜 All For Securities Market 〜 16 Breakdown of Operating Revenues by business(Margin Loan Business) (Ex. Premium Charges) Resulted in a decrease due to a decrease of theStock loan balance, while Margin Loan balance increase slightly.
【Operating Revenues Transition】
Quarterly

(mil）

１Q-3Q
Margin Loan
Business¥ mil（ex premium
charges）

7,675(6,551)

2,823(2,453)

2,785(2,378)

(370)

(406)

314

370

329

2Q

368

3Q
FY2019

1,987

1,962

(1,703)(284)(1,649)
(312)

208

279

398

4Q

322

1Q

2,417

2,193

(2,060)(1,853)

(357)

(339)

302

306

359

2Q
FY20206,573(5,564)(1,123)(1,009)

1,022

1,047

364

969

888

3Q

1Q-3Q

1Q-3Q

FY2019FY2020

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

Fees onLending
Securities

3Q
Revenue

1Q-3Q
Revenue

(YoY)

(YoY)

2,899

(△18.6%)

1,046(△11.7%)2,193(△21.3%)

1,853

Premium
Charges(△22.1%)

LendingFees(△16.4%)

Intereston
LoansInterest on
collateralmoney ofsecurities
borrowed

339

364

Point

8,716

(△11.4%)

 Operating revenues
except Premium
Charges resulted in(△4.2%)
a decrease.

3,152

 Fees on Lending
Securities resulted
in a decrease,(△14.4%)
because Stock Loanbalance remained at
5,564
lower level of the(△15.1%)same period of theprevious year and1,009
premium charges on
over-lent issues also(△10.2%)decreased.

6,753

1,047  Interest on Loans(△1.0%)(＋2.5%)

306

888(△17.4%)

Full Year(△0.4%)

increased, because
average balance ofMargin Loan
increased slightly
compared the same
period of theprevious fiscal year.

〜 All For Securities Market 〜 17 Breakdown of Operating Revenues by business(Securities Financing ①)
 Loans to Securities Companies increased as a result in the balance ofequity repo denominated in foreign currencies and loans to FIBOs.
【Operating Revenues Transition】
Quarterly

1Q-3Q

¥ mil

53

(¥ mil）

59

473

20
21

15

18

19

221

201

175

22
142

184

123

123

123

112

117

121

2Q

3Q

4Q

1Q

2Q

3Q

FY2019263

FY2020371

1Q-3Q
FY2019

597

351

1Q-3Q
FY2020Loans for
Negotiable
MarginTransaction
Loans toSecurities
Companies
Loans toIndividual
Investors
or
Firms

3Q
Revenue

1Q-3Q
Revenue

(YoY)

(YoY)

19

(△7.4%)

175(△5.1%)

121(△1.6%)

53(△11.2%)

Full YearPoint
 LNMT and
Loans toIndividual
Investors of
Firms
decreased.

 Loans to
Securities(＋26.2%)companies
resulted inincreaseboosted byincrease in351
use of(△5.5%)
Equity Repo597

＜ Loan Lineup ＞
 Loans to Securities Companies ・・・ General Loans, Bond Financing, Loans for Negotiable margin Transaction,
Stabilizing fund loan, Equity Repo(Cash-secured Stock Lending Transaction)
 Loans to Individual Investors or Firms ・・・ Com-STOCK Loan
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 18 Breakdown of Operating Revenues by business(Securities Financing ②)
 Bond Lending : Both outstanding of Gensaki transactions and repo transactions
increased significantly.
 General Stock Lending : Borrowing demands for mainly fail-cover increased.
【Operating Revenues Transition】
Quarterly

1Q-3Q(¥ mil）

¥ mil

730

GeneralStock
Lending

734

3Q
Revenue

1Q-3Q
Revenue

(YoY)

(YoY)

232

(△16.9%)

7,554
295
240

279

2,836

1,354

1,645

2,080

2Q

3Q

4Q

FY2019

202

280

2,225

1Q

2Q
FY2020

232

4,426

Bond
Lending

2,491

3Q

1Q-3Q

1Q-3Q

FY2019FY20202,491(+51.4%)

Full Year
Point

Revenue increased.
730 Because borrowing(△0.5%) demands for mainly
fail-cover increased.

Revenue increased.
Both outstanding ofgensaki
7,554 transactions and(+70.6%) repo transactions
increasedsignificantly.

※ Genera Stock Lending is ・・・
Lending stock to securities companies depending on their various demands (ex. Fail-cover, arbitrage), except
on demand to settle Margin Transaction
 Main business partner ‒ 【Lenders】 Institutional investors, etc 【Borrowers】 Securities Companies



Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 19 Breakdown of Operating Revenues by business(JSF Trust Bank)
Trust charges continued growth trend.
【Trust charges Transition】
Quarterly

1Q-3Q(¥ mil）

¥ mil

578
190

194

206

232

251

255

2Q

3Q

4Q

1Q

2Q

3Q

FY2019FY2020

3Q
Revenue

1Q-3Q
Revenue

(YoY)

(YoY)

738

Trust
Charges
1Q-3Q

1Q-3Q

FY2019FY2020255(＋30.9%)Full Year
Point

Trust charges
continued
increasing,
contributing fromstrengthening
custodian type
738 trust service(+27.7%) (trusts for the
separate
management ofmoney andsecurities, ABL
trust, etc).

【Trust Lineup】
Trusts for the separate managementof money and securities

Trust for protecting deposits which securities companies received from
customers

Trusts for currency future trading

Trust for protecting guarantee deposits which FX business operators
received from customers

Asset Backed Loan (ABL) Trust

For setting up ABL, which is investment product for institutional
investors, JSFTB provides functions as SPC.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 20 Analysis of YoY Change in Operating Revenue by Business(1Q-3Q)〜 Summary of the points for 1Q-3Q 〜【Margin Loan Business】【1Q-3Q】 YoY ＋ ¥ 867 mil（＋3.9%）+3,127¥ mil+124△1,127△6△20【Securities Financing】

＋8
△771

△462

△3

23,17522,307

 Resulted in decrease due to a decrease ofoutstanding balance of Stock Loan.
 Loan to Securities Companies : Outstandingbalance of equity repo transactions denominatedin foreign currencies and Loan to FIBOs increased.
 Loan to Individual Investors or Firms :resulted in decrease due to lower loan balance.
 Bond Lending : Both outstanding of Gensaki
transactions and Repo transactions increased
significantly.

【Others】
FY2019
1Q-3Q

MarginLoan

Loans for Loans for Loans for
NMT
Sec Com Investors

Stock
Lending

Bond
Lending

Others

ー

ー

Trust
Bank

Real
EstateSecurities Financing

Securities Finance Business

FY2020
1Q-3Q

 Resulted in decrease due to decrease in gain on
sales of JGBs and the impact of foreign exchange
gains concerning foreign currency.

【Trust Business】
 Despite Trust Charge remained steady, gains onsales of bonds largely decreased.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 21 Outstanding Balance of Transactions by Group Business(Average balance)\ mil

Transaction type

FY20191Q-3Q

FY2019FY2020
1Q-3Q

Margin Loans

210,409219,979

214,171

Stock Loans

355,656

333,949

315,4074,214,384

4,609,077

6,873,620

Loans for Negotiable Margin
Transaction

10,506

10,434

8,829

Loans to Securities Companies

326,536

309,033

303,686

Loans to Individual Investors
or Firms

13,927

13,934

13,020General Stock Lending

63,32160,85955,303

Bond Lending

3,800,092

4,214,817

6,492,780

Trust Bank Loans

481,323

473,808555,735

Securities Financing

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 22 Margin Transactions & Loans for Margin Transactions
3.0

¥ tri

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Margin Buying Balance
Margin Loan Balance
Ratio

2.5
2.0
1.5
1.0
0.5
0.0
08

09

10

11

12

13

14

15

16

17

18

19

20

1.0 ￥tri

100%
Margin Selling Balance
Stock Loan Balance
Ratio

0.9
0.8

90%
80%

0.7

70%

0.6

60%

0.5

50%

0.4

40%

0.3

30%

0.2

20%

0.1

10%

0.0

0%
08

09

10

11

12

13

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

14

15

16

17

18

19

20

〜 All For Securities Market 〜 23 Structure of Margin Transaction& Loans for Margin Transaction
MarginTransaction

Loans for Margin
Transaction
Margin Loan application
Stock Loan application

Margin buying order
Margin selling order

Institutional
Investors

Fund for Purchasing
Stock to sell

Fund (Margin loan)
Stock (Stock loan)

JSF

Securities
Companies

BrokerInvestor

Stock

Funds

Call Market

Purchased Stock
Sale ProceedBank of Japan

Stock Exchange
Clearing facilities
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 24 Revenue structure of Loans for margin transactions

Over-lent

Income statement

Margin Loans

Over-lent(E)=(A)-(D)Stock Loans ※(C)matching(D)=(B)-(C)matching(D)=(B)-(C)Margin Loans(A)

Stock Loans(B)【Operating revenues】
Interest on loans＝(A)×0.60%
Fee on lending securities (lending fees)＝(B)×0.40％
Interest on collateral money of
securities borrowed＝(C)×0.60％【Operating expenses】
Interest on borrowing＝(E)×fundingrateBesides the above, Premium Charges are posted in Operating Revenues (Fees on Lending
Securities) in a part of Over-lent Stock Loan. But the same amount are posted in Operating
Expenses (Fees of Borrowing Charges), so the amount of Premium Charges does not affect our
profit.
【revenue】 Fees on lending securities (premium charges) = 【expense】 Fees on borrowing
securities (premium charges) = (C)ʻ×rate of Premium charges
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 25 Margin Loan Rate

LendingFee
0.40%

Securities
Company

Loan Rate
0.60%

Stock Loan

JSF

Securities
Company

Margin Loan

BOJ Policy Interest RateJul 2006 Uncollateralized O/N Call Rate:0.25％



Feb 2007 Uncollateralized O/N Call Rate:0.50％



Oct 2008 Uncollateralized O/N Call Rate:0.30％（▲0.20%）

Dec 2008 Uncollateralized O/N Call Rate:0.10％（▲0.20%）



Oct 2010 Uncollateralized O/N Call Rate:0〜0.10％（▲0.10~0%）
Apr 2013 Switched from interest rate to monetary baseJan 2016 Embraced negative interest rates
Sep 2016 Introduced QQE with Yield Curve Control

Interest on Collateral Money
0%

1.2%

Loan Rate
Lending Fee
Interest Rate on Collateral Money of Stock Loan
BOJ Policy Rate

Margin Loan Rate



1.0%




0.8%



0.6%




0.4%
Apr.2013〜
Monetary base start

0.2%

0.0%

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

27/Jul/2006 0.74％（+0.14％）
22/Sep/2006 0.86％（+0.12％）
15/Mar/2007 1.02％（+0.16％）
05/Apr/2007 1.11％（+0.09％）
29/Jan/2009 0.97％（▲0.14％）
22/Nov/2010 0.77％（▲0.20％）
06/Aug/2014 0.64％（▲0.13％）
09/Mar/2016 0.60％（▲0.04％）

 Margin Loan Rates are decided by reflecting thechange of market rates and BOJʼs Policy Interest
Rate.

〜 All For Securities Market 〜 26 Loan Rate of Loans for Margin Transactions
2.00%

Loan Rate
Lending Fee

1.60%

1.20%

0.6%
0.80%

0.40%

0.4%
0.00%

97

98

99

00

01

02

03

04

05

06

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

07

08

09

10

11

12

13

14

15

16

17

18

19

20

〜 All For Securities Market 〜 27 Securities Holdings\ mil
Securities Holdings

Unrealized profits andloses

B/S Amountnotes

Dec-20Mar-20

Unrealized profits andloses

B/S Amount

Equity12,176

7,198

16,306

11,327

Bond809,00224,209862,506

22,721

JGB&Municipal Bond

518,829

26,712504,21422,075

Corporate Bond

253,617▲567

313,440▲323 Government Guaranteed Bond ,etc.

Others36,555▲1,93544,85013,943▲1,678

16,6901,248

835,12129,730895,50235,297ー(6,075)ー(11,247)

Other Securities
Total（included the eﬀects ofderivatives）

held-to-maturity bonds

Unrealized profits andloses

B/S Amount

JGB

1,512

Unrealized profits andloses

B/S Amount208

969 Foreign government bonds

1,512

notes

212

※Unrealized proﬁts and losses is not inclueded the eﬀects of hedging with derivatives

Yen Bond Portfolio （JSF Trust Bank）

Yen Bond Portfolio（JSF）
12,00010,000
8,000
6,000
4,000
2,000
010 years 9,424（億円） over
2.69
14/3（¥ 100 mil）
7,000
6,000

5 years
to9,798
10 years
2.32
14/9

5,286

9,210
2.819,498
1 year to 5 years
2.69
2.41
14/12
15/3
（year）
6.0

4.69

4,930

5,000

4.25

4.31

4,274
3,660

4,000

4.0
3,320

3,290

3,000
2,000

5.0

1,000

1.99

2.10

0

Sep.18Mar.19Sep.19Mar.20

Sep.20

Dec.20（¥ 100 mil）
7,000

3.0

6.0
5.0
4.0

3.0
2.0
1.0
0.0
3.948,378（年）
Averageremaining
period
3.54
15/12
5.35

6,000
5,000
3,186

1.0

1,000

0.0

0

4,183

3,584

2.0

1.06

1.0

1.92

1.18

4.0
3.0

1,310
1,255

（year）
6.0
5.0

3,991

3,000
2,000

5.12

4.26

4,000

2.0
2.10

3.67
within3.23
1 year
8,158
15/9

0.0

Sep.18Mar.19Sep.19Mar.20

Sep.20

Dec.20(Note) Average remaining period is calculated excluding held-to-maturity bonds, bonds for which hedge-accounting are applied
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 28 JSF Trust Bank （Loan Balance）● Loan Banance by Industry\mil

Dec-19Loan
Balance
Manufacturing

Mar-20ratio

Loan
BalanceDec-20ratio

Loan
Balance

ratio

2,000

0.5%

0

0.0%

0

0.0%

Fishery

0

0.0%

0

0.0%

0

0.0%

Mining

0

0.0%

0

0.0%

0

0.0%

Construction

0

0.0%

0

0.0%

0

0.0%

Energy & Utilities

0

0.0%

0

0.0%

0

0.0%

Communication

0

0.0%

0

0.0%

0

0.0%

Transportation

689

0.2%

689

0.2%

689

0.1%

Wholesale

800

0.2%

800

0.2%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

Finance & Insurance

1,000

0.2%

4,100

0.9%

0

0.0%

Real Estate

1,500

0.3%

1,500

0.3%

1,120

0.2%

0

0.0%

0

0.0%

0

0.0%

438,27098.7%

440,81098.4%

507,864

99.6%

RetailService Industries
Governments
Total

444,259

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

447,899509,673〜 All For Securities Market 〜 29 Major Issues in Formulating the Plan
(The 6th Mid-term Management Plan Ⅰ)
External environment• Trend of Strengthening Corporate
Governance• Continued ultra-low interest rateenvironment, etc.

 Incorporate the significance ofthe transition to a governancesystem into a planInternal environment
Business
Philosophy
Characteristics ofSecurities Finance
Company

Transition to a
Company with
Nominating
Committee, etc.

Review of theFifth Plan

Issue I
Response to the
New Governance
Structure
Issue II
Response to theperception ofchallenges under thechanges in theinternal and external
environment

Stakeholders
Shareholder/Investor Supervisory Authority/
Business Partners/
Lenders (funds and securities) and others
Copyright Japan Securities Finance Co., LTD. All Rights Reservedi.

Consider risk appetite for achieving
the plan and ensure transparency andconsistency of the overallmanagement planii. Setting and disclosing managementtargets that JSF believes areappropriateiii. Establishment of a system to regularly
monitor Incorporate responses to awarenessof challenges
i. Secure earnings to stabilize our roleas part of the market infrastructure.
Aiming to diversify revenue sources bymaking more effective use of various"capital"ii. Strive to build an efficient business
operation system, improve corporate
vitality, and strengthen ourcompetitive base

〜 All For Securities Market 〜 30 Our Vision for the Future (The 6th Mid-term Management Plan Ⅱ)
Targeted
Future/Our
VisionAwareness of
issues

To grow into a highly competitive company in the overall
Security Finance Business, which is centered on the licenced
Margin Loan Business• Aim to further expand and strengthen the earnings base by making more
effective use of capital• Establishment of an efficient business operation system and an
appropriate risk-taking management system• Maintaining our core competence “Fairness and Neutrality”,“Financial
Soundness”, and “High creditworthiness”.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved（Review of the 5th mid-term management plan)• Revenues from Margin Loan Business fluctuate• Develop the ability to cover earnings other thanMargin Loan Business and fund management
 Increasing complexity and volume ofbusiness Handling of foreign securities, foreign
currencies, and direct transactions withoverseas bases
 New transaction methods (evergreen
provisions, etc.)
 Sophistication of fund management(expansion of investment target assets andhedging methods)

Internal environment

External environment• Trends in Strengthening Corporate
Governance• Increasing Awareness of Capital Efficiency• Continued ultra-low interest rate environment• On the other hand, attention should be paid tothe possibility of a global financial stressevent.
• Risk of intensifying competition in the
securities lending market under current
financial environment of difficulty in fundmanagement（Changes occurring after formulation）• Economic Activity and Social Impact of the
COVID-19 pandemic〜 All For Securities Market 〜 31 Corporate Philosophy / Management Principles(The 6th Mid-term Management Plan Ⅲ)

Corporate
Philosophy

Management
Principles

As an institution specializing in securities finance, JSF has a mission tocontribute to the development of the securities market by proactively meetingthe diverse needs of the securities and financial sectors and to enhance thelong-term interests of users, while always maintaining a keen awareness of its
public role.
⑴ To practice sound business management by thoroughly
implementing compliance, corporate governance, and risk
management under a new governance structure andthereby establish solid credibility, while always
maintaining a keen awareness of our social
responsibilities as a securities finance company.

Basic Concept as
the Securities
Finance Company⑵ To enhance enterprise value while maintaining solid
equity capital in order to ensure stability in management
and the financial health required of a company that is a
key player in securities market infrastructure, to givecomprehensive consideration to the earnings environment,
investment plans, etc., and to ensure profits are returned
to shareholders.

Solid equity capital
Financial health⑶ To further enhance JSFʼs core margin loan business while
also striving to expand the finance- and securitiesrelated services provided by JSF and Group companies,
develop new business, and to further grow and solidify our
base.

Future businessdevelopment⑷ To build a quick and efficient business management
structure and strengthen our competitive base in order toaddress changes in the business environment in a flexible
manner.

Businessmanagement
structure

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 32 Management Goals / Strategies(The 6th Mid-term Management Plan Ⅳ)

Management
Goals

Given that the margin loan business, JSFʼs core business, is greatly affectedby market fluctuation, we will strengthen its base by steadily increasing ournumber of loanable stock issues and stabilize our role as part of the securities
market infrastructure by diversifying revenue sources and steadily increasing
our basic profit (recurring income calculated based on the assumed grossoperating profit of margin loan business)

Strategies

Enhancing the Margin Loan
Business as part of securities
market infrastructure

Developing and realizing
new business

Diversified management of
securities as an efficientuse of capital
Facilitating diverse work
styles and making JSF more
dynamic

Expanding and enhancing
the “Securities Finance”
businessStrengthening business
management structure

Strengthening ourcompetitive base throughefficient business operation＜Framework to integrate management goals and strategies with risk management＞

Use of Risk Appetite Framework
Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 33

● Management Goals(The 6th Mid-term Management Plan Ⅴ)

Number of loanable stock issues : We will aim to increase our number of loanable stock
issues steadily to strengthen our margin loan business base

Basic profit : We will aim to diversify revenue sources and steadily increase our basic
profit to stabilize our role as part of the securities market infrastructure⇒ Actual results on the base of fiscal years will be disclosed (at the announcement of thefinancial results)◆ Definition of “basic profit”
Recurring income calculated based on the assumed gross operating profit of margin loan business (average over the past three years)

1. Characteristics of Our Recurring Income

2. Calculation of Basic Profit

(A)

(B)

(C)

20XX-320XX-2

20XX-1Margin loan business profit

Basic profit

Change in recurring income(conceptual illustration)(A) + (B) + (C)3

Non-margin loan business profit

FY20XX

20XX+1

20XX+2Non-margin loan business profit
Assumed gross operating profit of margin loan business

Margin loans, JSFʼs core business,
are susceptible to market fluctuation(profit fluctuates significantly)

 We calculate the basic profit tovisualize our profitability based on our
average margin loan business profit.



It is difficult to understand change inour basic earnings

 This makes change in basic earnings
easier to understandCopyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 Strategies(The 6th Mid-term Management Plan Ⅵ)

Enhancing the Margin
Loan Business as part of
securities market
infrastructure.
Expanding and enhancing
the “Securities Finance”
business

We aim to pursue stable management of our margin loan business and improve profitability byappropriately responding to changes in the stock market environment. Moreover, we aim tomonitor trends among market participants carefully, increase our number of lending issues
steadily, promote the use of margin loans, enhance the provision of information relating tomargin transactions and margin loans, and expand the range of investors.
We aim to utilize the financial and securities transaction expertise we have cultivated thus far
to handle diverse transactions with domestic and overseas financial instruments businesses ina proactive manner and increase business partners and applicable securities to enhance andexpand our “Securities Finance” business, increasing opportunities for profit.

Developing and realizing
new businessWe will leverage our strengths as a company with a history in the securities finance field, anddevelop and realize new business based on a long-term perspective in collaboration withGroup companies and domestic and foreign partners.

Diversified managementof securities as anefficient use of capital

We will secure stable revenues by responding to changes in the external environment andrevising our portfolio in a flexible manner while maintaining appropriate risk controls.
Moreover, we will move forward with expanding management based on foreign currencydenominated securities such as foreign government bonds and establishing funding methods
for foreign currency in order to support the development of business using foreign currency.

Strengthening business
management structure

We will proactively address our social obligations and ensure that compliance is positioned asa prerequisite of management in order to achieve our corporate philosophy.
To establish unwavering social trust in our company, we aim to secure theeffectiveness of our internal auditing and further enhance our risk management in responseto the increasingly diverse and complex risks associated with the finance business.
In order to fulfill our role as part of the securities market infrastructure even in the eventthat a major disaster occurs, we will continue to upgrade our business continuity system.

Strengthening ourcompetitive base throughefficient business
operation

As our transaction volume increases and our business becomes more complex, we will
review our processes and actively promote the use of digital technologies such as RPA(robotic process automation) to build an efficient business operation structure andstrengthen our competitive base.

Facilitating diverse work
styles and making JSF
more dynamic

As work changes and diversifies with work-style reform, delayed retirement and more,
we will increase the productivity of individual personnel and make the company more
dynamic by reviewing our employment system and developing a rewarding andemployee-friendly workplace.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 35 Our Group Companies
Subsidiary
Affiliate（ ) Shareholding Ratio

Japan Securities Finance（100%）
JSF
Trust Bank

（100%）Nihon
Building（20.0%）
Japan Information
Processing

Capital（20.8%）
JSFIT

Shareholding
Ratio

Name

100%

JSF Trust and Banking Co., Ltd.

14,000100%

Nihon Building Co., Ltd.

100

Real estate ownership and leasing
Real estate trading and brokerage

20.0%

Japan Information Processing Service Co., Ltd

2,460

Information processing services
Software development and sales

20.8%

JSF Information Technology Co., Ltd

100

Information processing services
Software development and sales

Copyright Japan Securities Finance Co., LTD. All Rights Reserved(mill yen)

Business overview
Trust service, Banking service〜 All For Securities Market 〜 36 Rating Information

JCR

R&I

As of 31/Dec/2020
Japan
Securities
Finance

JSF TrustBank

Standard &Poor’sRatingOutlookRatingOutlookRatingOutlookLong-term

AA-

StableAA-

StableA

StableShort-term

J-1+

a-1+

（Highest）（Highest）

CP Issue

¥1tri

¥1tri

Long-termA+

Short-term

J-1+

Stable

A+
a-1

A-1
―
Stable――――（Highest）

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 37 ESG/SDGs Initiatives
As an institution specializing in securities finance as a key player in securities market
infrastructure, JSF has a mission of contributing to the development of the securities
market, which is the foundation of our economic and social activities.
We are committed to contributing to the development of a sustainable society throughthe promotion of operations centered Margin Loan Business and the following initiatives,
while maintaining a keen awareness of its public role. At the same time, we arecommitted to maintain our social responsibilities by enhancing corporate governance,compliance, and risk management.

E

S

G

 Minimize environmental impact
 Improving company facilities to conserve electricity and be conscious ofenvironmental impact
 Promote paperless operations in all areas of the company
 Contribution to the development of overseas securities markets
 Technical assistance and investment
in Indonesian Securities Finance Realization of diverse work styles for employees
 Support for childbirth, childcare, and nursing care
 Introduction of company-wide telework
 Understanding Employee Engagement
 Further improve governance as a company with nominating committees, etc.
 Majority of directors are independent outside directors.
 Chairperson of the Board of Directors and Chairperson of the 3
Committees are Independent Outside Directors

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 38 Our Corporate Philosophy and History to Date

Corporate Philosophy
As an institution specializing in securities finance, JSF has a mission tocontribute to the development of the securities market by proactively
meeting the diverse needs of the securities and financial sectors andto enhance the long-term interests of users, while always maintaininga keen awareness of its public role.
Our History to Date
 Focus on stable management of Margin Loan Business and improving convenience as an
infrastructure for securities markets
 We will also engage in new operations that meet market needs.

1950
Established as
an institution
specializing insecurities
finance in
response torequests fromthe securities
industry withthe aim ofstabilizing andpromoting thesecurities
market

1951

1977

1989

1998

 Launched Margin
Loan business Launchedgeneralstocklendingbusiness Launched Establishment
brokerageof JSF Trust
business forBankbond lending2019 Launched loans
for margintransactions for
PTS

In conjunction with the establishment of the margin transaction
system, commenced the Margin Loan Business of lending funds orstock certificates, etc. necessary for the settlement of margintransactions to securities companies.
⇒ Roots as a licensed company stipulated in the Financial
Instruments and Exchange Law

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 39 Characteristics of Securities Finance Company
Securities financecompany＝ Operator of
Margin Loan
Business under
the license of the
FIEASpecificity of
Margin Loan
Business

Responsibility for the
stable operation of the
Margin Loan BusinessAlthough it is the only
licensing company
Be not a monopoly

Statutory Restrictions
on Subsidiary BusinessWith the lending of funds
secured by securities
Mainly lending securities

For ex-post funds andstock certificates loan
application
ー In principle, allapplications must be
accepted

Maintain and improve highprocurement capabilities
Required to be eligible forparticipation in Central
Bank Operations andsecurities settlement
systems.

 Stable earnings and financial base
 Required a certain level of equity
capitalCopyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 40

● Our Business Field（image chart）＜Funds＞(Margin Loan/Stock Loan)

Securities Financing

Equity Repo
Loan to Individual
Investors or Firms

LenderMoney Market,
etc.

Securities
Lending(Equity・Bond)

Financial
Institutions

SubsidiaryBusiness

Loan to Securities
Companies

Investors

Margin Loan BusinessBorrower
Securities Companies

For
Standardized
MarginTransactions＜Securities＞

Institutional investors,
Securities companies,
etc.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜 41NoticeThis document includes statements for business forecast. Thesestatements donʼt guarantee companyʼs future achievement and thatinvolve risk or uncertain factors. Companyʼs future achievement may
be changed drastically up to stock market or financial conditions.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved〜 All For Securities Market 〜