Analysis of Business Performance and Financial Results
Note: In the following section, all comparisons are with the previous fiscal year (fiscal 2008, ended March 31, 2009) unless stated otherwise.

In fiscal 2009, the Japanese economy began to show signsof recovery, supported by factors such as a recovery inexports to China and other developing countries, and thebeneficial impact of government stimulus measures suchas eco car tax breaks, subsidies, and an eco-points system
for home appliances.
The stock market recovered in the first half of fiscal
2009, reflecting an easing of the credit crunch in US
and other financial markets amid signs that the global
economy was starting to bottom out. The Nikkei Averagerose to the ¥10,000 level from a low of ¥7,054 recordedon March 10, 2009. However, the subsequent strength of
the yen brought fears of downward revisions to corporate
earnings and, with the employment situation remaining
severe, the Nikkei Average fell back below the ¥10,000mark. It regained the ¥10,000 level in the latter half of thefiscal year, reflecting further signs of economic recovery.
For JASDEC, with average daily trading volume in excess of 2 billion shares on the Tokyo Stock Exchange andthe Nikkei Average generally around the ¥10,000 mark,transaction activity remained vigorous, and the number ofshares handled by JASDEC’s book-entry transfer system
maintained momentum.
JASDEC’s operating revenues for fiscal 2009 declined¥6,190 million, or 22.8%, year on year, to ¥20,973 million, primarily due to reductions in the rate of commission charged for book-entry transfers for stocks, etc.,
pre-settlement matching services and DVP settlement
services. Although operating expenses decreased ¥6,115million, or 25.0%, to ¥18,338 million, a significant impact from lower operating revenues meant that operating
income declined ¥75 million, or 2.8%, to ¥2,634 million.
Income before income taxes increased ¥75 million, or3.3%, to ¥2,407 million. However, net income for theperiod was ¥1,317 million, representing a year-on-year
decrease of ¥16 million, or 1.3%.
The earnings performance of each of JASDEC’s business segments is as follows.

42Jap an Secu ritie s Deposito ry C e n te r, I n c . A NNUA L R E P O RT 2 0 1 0Book-entry Transfer System for Stocks, etc.
In this business, JASDEC was handling a total of 3,906
issues as of March 31, 2010, representing 114 fewer issues than one year earlier. Account balances included
412.9 billion shares (up 18.1 billion shares compared toone year earlier), ¥1.2 trillion for bonds with share options (up ¥57 billion), 2.3 billion account units for ETFs
(up 433 million account units), 10.6 million account unitsfor REITs (up 2.5 million account units), and 700,000
account units for preferred equity investment of financial
institutions established by cooperative associations (up350,000 account units). The total number of book-entry
transfers handled increased by 14.2 million to 84.8 million transactions, with increases in both account balancesand number of transactions. However, the impact of thereduction in commission rates, as noted above, meant thatearnings in this business segment for the year declined¥3,395 million, or 15.6%, to ¥18,334 million. During
the period under review, refunds of ¥2,741 million weremade on book-entry transfers and account management.
After deduction of this amount, earnings from the Bookentry Transfer System for Stocks, etc. decreased ¥5,365
million, or 25.6%, to ¥15,593 million.
It should be noted that the new Book-entry Transfer
System for Stocks, etc. came on stream on January 5,
2009. Accordingly, in calculating the year-on-year comparison of earnings in this segment, figures for the previous year have been based on the combined earnings fromboth systems used during that year.

Book-entry Transfer for Commercial Paper
This business segment had a total of 490 corporate issuers
as of March 31, 2010, unchanged from the end of the previous fiscal year. Total transaction value was ¥14.1 trillion, down ¥4.6 trillion year on year, and the total numberof issuance, transfer and redemption transactions handled
was 304,659 transactions, a decrease of 26,729 transactions. Earnings from this business segment declined ¥106
million, or 17.9%, to ¥487 million.

Book-entry Transfer System for Corporate Bonds

DVP Settlement Services for NETDs

This business segment was handling a total of 71,202
issues as of March 31, 2010, representing 2,096 fewer
issues than one year earlier. Total transaction value was¥245.5 trillion, an increase of ¥5.2 trillion year on year,
and the total number of issuance, transfer and redemption
transactions handled was 481,090 transactions, a decrease of 84,095 transactions. Earnings from this businesssegment were essentially flat at ¥1,296 million.

This business segment handled a total of 20.7 million NETD
DVP settlements during the year ended March 31, 2010, ayear-on year decrease of 2.8 million settlements. As a resultof reduced commission rates, earnings from this segment
declined ¥352 million, or 26.9%, to ¥957 million.
During the year under review JDCC made refunds on
DVP settlement commissions totaling ¥190 million. After
deduction of this amount, earnings from DVP settlement
services decreased ¥110 million, or 12.6%, to ¥767 million.

Book-entry Transfer System for Investment Trusts
This business segment was handling a total of 6,297 issues as of March 31, 2010, representing 391 more issues
than one year earlier, and comprising 3,647 publicly offered investment trusts and 2,650 privately placed investment trusts. The total account balance, based on principlevalue, was ¥110.2 trillion, representing a ¥4.6 trillion increase from one year earlier and comprising ¥78.6 trillion
in publicly offered investment trusts and ¥31.5 trillion inprivately placed investment trusts. The total number ofissuance, purchase and redemption transactions handled
was 3,940,808 transactions, an increase of 119,061 transactions. Earnings from this business segment increased¥13.2 million, or 1.3%, to ¥1,040 million.

Pre-settlement Matching System
Earnings from this business segment declined ¥359million, or 15.2%, to ¥2,010 million, due to the reductionof the commission rate. During the year under review
JASDEC made refunds on pre-settlement matching
services totaling ¥485 million. After deduction of thisamount, earnings from this business segment decreased¥588 million, or 27.9%, to ¥1,524 million.

Custody Services for Foreign Stock Certificates, etc.
This business segment had an account balance of 79
million foreign stocks, etc., excluding foreign coveredwarrants, as of March 31, 2010, a decrease of 51 million
compared to one year earlier. The account balance forforeign covered warrants was 102 million warrants.
The total number of transactions (including foreign
covered warrants) was 149,915 transactions, 85,868 morethan in the previous year. Earnings from this business segment declined ¥33 million, or 11.2%, to ¥263 million.

Financial results (consolidated)
Operating revenues

Net income

Operating income(Million of yen)

30,00026,022(Million of yen)

27,163
20,9733,000
2,0000(FY ended)

Net assets(Million of yen)

400,000

80,000

182,082.62
300,000
156,934.33
154,949.18
200,000
2,651
1,547
1,333 1,317

60,000100,000

20,0004,000

20,000

4,671

Total assets(Yen)

311,995.13

22,55910,000Net income per share

4,292

2,709

2,634

3/2007 3/2008 3/2009 3/2010

1,000
0 3/2007 3/2008 3/2009 3/2010(FY ended)

61,615056,037

54,83959,92540,0000

16,6893/2007

17,8973/200818,8903/200919,8683/2010(FY ended)

J a p a n S e c u r i t i e s D e p o s i t o r y C e n t e r , I n c . A N N U A L REPORT 201043