Japan Securities Finance Co., Ltd.
FY2023 1Q
Financial Results Presentation

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～Table of Contents
Overview of Financial Results for the 1Q of FY2023◼ １．Executive summary (Consolidated)

Ｐ３◼ ２．Summary Financial Results for the 1Q of FY2023

Ｐ４◼ ３．Summary Financial Results for the 1Q of FY2023 （Non-consolidated）

Ｐ５◼ ４．Financial Highlight (Margin Loan Business）

Ｐ６◼ ５．Financial Highlight (Securities Financing）

Ｐ７◼ ６．Financial Highlight (Securities Investment / Non-consolidated）

Ｐ８◼ ７．Summary Financial Results for the 1Q of FY2023 (JSF Trust Bank）

Ｐ９

◼

Ｐ10

8．Estimated Figures for FY2023 （Revised on August 2）◼ (Appendix)

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

P12～29～ All For Securities Market ～2

１．Executive Summary (Consolidated)（¥ mil）

FY2023
1Q

Highlights
YoY ⊿

⊿％

Operating
Income3,068+1,284

Recurring
Income3,364+1,165+53.0%Net
Income

2,453

+390

+18.9%✓

Showed favorable results in margin loanbusiness and securities financing
business against the backdrop of stock
market activity.

✓

Posted record high quarterly gains in
Gensaki transactions and repo
transactions and equity repo
transactions.

+72.0%

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～3

２．Summary of Financial Results for the 1Q of FY2023
Consolidated（¥ mil）

FY2023
1Q

YoY.⊿

Non-consolidated
(%⊿)

JSF

300

▲4

21

▲86

7

▲0

+146

287

+10

148

▲25

2,509

+1,244

413

+22

144

+21

4,259

+686

414

+22

193

+20

(△100.0%)

―

▲671

―

(―)

―

(―)

(+18.9%)

3,540

▲77

286

+18

128

+13

～ All For Securities Market ～412,801+2,617

10,116▲219(△2.1%)

9,236

▲190

8,703

+1,172(+15.6%)

8,718+1,226

5,137▲1,635(△24.2%)

5,152▲1,582

General &Administrative Expenses

1,910

+131

(+7.4%)

1,574

Operating Income

3,068+1,284(+72.0%)Recurring Income

3,364+1,165(+53.0%)76+26(+54.6%)

―

▲671

2,453

+390

ExceptPremium Charges

Gain or Loss inEquity-Method

Extraordinary
Profit or LossNet Income

YoY.⊿

▲54

(+23.3%)Operating Expenses

YoY.⊿

722

+2,589ExceptPremium Charges

Nihon Building

YoY.⊿

13,682

Operating Revenues

JSF Trust Bank

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

３．Summary of Financial Results for the 1Q of FY2023（Non-consolidated）
Japan Securities Finance（Non-consolidated）

Key Points*Excluding premium charge（¥ mil）

FY2023
1Q

YoY.⊿

(%⊿)

Operating
Revenues*

9,236

▲190

(△2.0%)

Operating Expenses*

5,152▲1,582(△23.5%)

Operating Profit

4,083+1,391(+51.7%)

Margin Loan
Business*

1,057

+384

(+57.0%)

Securities Financing

1,895

+627

(+49.5%)

Others

1,130

+379

(+50.5%)General &Administrative
Expenses

1,574

+146

(+10.3%)Operating Income

2,509+1,244(+98.3%)

Recurring Income

4,259

+686

(+19.2%)Extraordinary
Profit or Loss

―

▲671

(△100.0%)

Net Income

3,540

▲77

(△2.1%)

Copyright Japan Securities Finance Co., LTD. All Rights Reserved●Operating Profit✓ Revenues increased mainly due tohigher balances in the margin loanbusiness and securities financing
business.
✓ Other revenues (mainly securities
investment) increased due to theabsence of the impact of portfolio
replacement implemented in theprevious fiscal year (gains on salesof domestic bonds and losses onsales of foreign currency bonds).

●Recurring Income✓ Dividends from two consolidated
subsidiaries decreased by ¥447
million YoY but had no impact on
consolidated results because of
consolidation eliminations.

●Net Income✓ Extraordinary gains of ¥671 million
due to change in retirement bonus
structure recorded in the previous
fiscal year have fallen off.

～ All For Securities Market ～5

４．Financial Highlights （Margin Loan Business）◼

Margin loan balances remained at a level higher than the previous fiscal year.

◼

Stock loans increased to around ¥300 billion during periods of rising stock prices as new
sales were predominant.

FY2022（\ bn）

1Q

2Q

1H

FY2023

3Q

full
year

4Q

1Q

YOY

Margin Loan

248

256

252

253

260

254

279

+31

Stock Loan

156

215

185

183

200

188

301

+145

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～6

５．Financial Highlights （Securities Financing）◼

Gensaki transactions and repo transactions continues to benefit from capturing diverse
investment and financing needs to continue upward trend and increased revenues◼

All other businesses also increased profit against the backdrop of stock market activity(¥ mil)Type of transaction

Loans for Negotiable
Margin Transactions

FY2023
1Q

YoY⊿

52

YoY%

+25 (+92.3%)✓ Increased profit due to higher
balances on the back of stock market
activity.

Securities Financing

Loan to Securities
Companies*

418✓ Outstanding equity repo transactions+59 (+16.5%)

Retail102+13 (+15.0%)✓ Increased revenues thanks to
improved merchantability, including
expansion of eligible collateral.

194+91 (+88.9%)✓ General stock lending increased YoY
thanks to recovery of borrowing
demand for fail-cover.

1,128+438 (+63.6%)✓ Outstanding gensaki transactions
and repo transactions remained athigh levels.

1,895+627 (+49.5%)

General Stock Lending

Bond Lending

Total Gross Profit

remained at record high levels.

* General Loans, stabilizing funding loan, equity repo, etc.
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～7

６．Financial Highlights （Securities Investment / Non-consolidated）◼

Securities investment revenues increased due to the absence of the impact of portfolio
replacement implemented in the previous fiscal year (gains on sales of domestic bonds andlosses on sales of foreign currency bonds).

Gains on management of market assets （JSF）
FY2023
１Q
Yen-based

YoY

1,213 mil

△2,240 mil

Domestic Bonds

655 mil△1,761 mil

Stocks and Others

558 mil△479 milIn foreign currencies△47 mil

2,633 mil

Total

1,130 mil

379 milRef. Trend of Interest Rate

Changes in Investment Portfolio

Source） Bloomberg

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～8

７．Summary of Financial Results for the 1Q of FY2023（JSF Trust Bank）◼

◼
◼

Custodian type trust services, particularly asset-backed loan trusts, drove increased
revenues from trust fees.
Recurring revenues decreased due to a decrease in interest income resulting from a
reduction in the fund management balance.
Net income increased thanks to lower recurring expenses such as interest on borrowing.

JSF Trust Bank
(Non-consolidated)（¥ mil）

Recurring Revenue【Trust Fees】
YoY

FY2023
１Q

741(¥ mil)(%)▲59(△7.4%)

Trust Fees

377

+41

(+12.2%)

Recurring Expenses

327

▲82

(△20.1%)

Recurring Income

414

+22

(+5.8%)Net Income

286

+18

(+6.8%)

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

336

377

FY2022
１Q

FY2023
１Q～ All For Securities Market ～9

8．Estimated Figures for FY2023（Revised on August 2）
Precondition

FY2023
Estimated
Figures（¥ mil）

FY2023 Estimate

YoY.⊿⊿ from prev.
EF

Consolidated
Over-lentMargin Loan
¥155bnOver-lent
Stock Loan
¥125bnMatching¥105bnMargin Loan
¥260bnStock Loan
¥230bnOperating Income

8,400＋2,045＋900

Recurring Income

9,400＋1,798＋900

Net Income

6,700

＋733

＋600

Operating
Income6,381＋1,990＋858

Recurring
Income8,379▲1,895＋927

Net Income

6,408▲2,894＋665

Recurring
Income

1,480

＋64

―

Net Income

1,027

＋51

―

Operating
Income

550

＋13

＋10

Recurring
Income

660

＋8

＋15

Net Income

435

＋5

＋10

JSF

（Reference）
FY2022 Results
Over-lentMargin Loan
¥160bnOver-lent
Stock Loan
¥94bn

Matching¥94bn
Margin Loan
¥254bn

JSF
Trust andBanking

Stock Loan
¥188bnNihon
Building

Preconditions of Loans for Margin Transactions●Loan Rate： 0.60％,●Interest on Collateral Money： 0%,●Lending Fee： 0.40％<Approach to Estimated Figures for FY2023（Revised on August 2）>✓ We conducted an upward revision based on strong 1Q results in both the margin loan business and Security Financing Business.
✓ Two consolidated subsidiaries are expected to remain at the same level as the previous fiscal year.
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～10Appendix⚫ Dividend and Share Buyback Program (Historical)⚫ Financial Result Trends (Consolidated)⚫ Gross Profit by Business⚫ Breakdown of Operating Revenues by Business⚫ Analysis of YoY Change in Operating Revenue by
Business (Quarterly)⚫ Outstanding Balance of Transactions by Group
Business⚫ Securities Holdings⚫ Balance Sheet Summary, consolidated

Copyright Japan Securities Finance Co., LTD. All Rights Reserved⚫ Margin Transactions & Loans for Margintransactions⚫ Structure of Margin Transactions & Loans for
Margin Transactions⚫ Revenue Structure of Loans for Margin
Transactions⚫ About the Margin Loan Rates⚫ Our Group Companies⚫ Rating Information⚫ Our Business Field (image chart)～ All For Securities Market ～⚫ Dividend and Share Buyback Program (Historical)
FY2023

FY
2017

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

Annual Dividend per share

¥26

¥22

¥22

¥26

¥30

¥32

Interim ¥17
Year-end ¥17

Share Buyback(shares)

1.5mil2.0mil1.0mil

―2.4mil3.1mil3.3mil（amount）¥0.9bn¥1.2bn¥0.5bn―¥2.3bn¥3.0bn¥3.3bnTotal Payout Ratio

79.3%

87.8%

71.0%

60.1%

97.6%

97.6%

92.2%

<Consolidated> : Net Income¥4.2bn¥3.7bn¥3.5bn¥3.9bn¥5.1bn¥5.9bn¥6.7bn

：EPS

¥44.2

¥40.0

¥38.4

¥43.2

¥56.6

¥67.7

¥77.6

： DPR

58.8%

55.0%

57.2%

60.1%

53.0%

47.2%

43.8%

（reference)

Forecast/
Framework¥34

Note for FY2023 (Forecast)⚫ The number of shares and the amount of the “Share Buyback“ are both subject to a repurchase limit⚫ The “Annual Dividend per share” is a forecast⚫ "Net income (consolidated)" refers to the estimated figure announced on Augest 2, 2023. Moreover, EPS and DPR havebeen calculated using this estimated figure.
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～12⚫ Financial Result Trends (Consolidated)¥ mil
FY2018FY2019FY2020

FY2021

FY2022
１Q

FY2022

FY2023
１Q

24,321

29,10130,92430,138

11,092 42,518

13,682

18,603

20,84623,711

27,305

10,33537,806

10,116

12,284

16,83518,018

16,5337,530

28,765

8,703

6,566

8,585

10,81913,728

6,773

24,053

5,137

General &Administrative
Expenses

8,056

8,136

8,129

7,368

1,778

7,398

1,910

Operating Income

3,981

4,129

4,777

6,235

1,783

6,354

3,068

248

306

395

446

49

523

76

5,046

4,894

5,558

7,164

2,199

7,601

3,364

Extraordinary
Profit or Loss

▲41

▲36

43

▲17

671

671

―

Net Income

3,765

3,556

3,971

5,174

2,063

5,966

2,453

Operating
Revenues
Ex Premium charges

OperatingExpenses
Ex Premium charges

Gain or Loss inEquity-Method

Recurring Income

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～13⚫ Gross Profit by Business\ mil

Operating Revenues(ex. premium charges)

Gross Profit

1Q
FY2022

FY2022

1Q
FY2023

1Q
FY2022

FY2022

1Q
FY2023

10,33537,806

10,116

3,562

13,753

4,978

Secrities Finance Business

9,427

33,919

9,236

2,692

10,363

4,083

Margin Loan Business(ex. Premium charges)

722

3,292

1,121

673

3,077

1,057

Securities Financing

4,821

21,976

6,633

1,267

5,850

1,895

Loans for Negotiable
Margin Transactions

31

149

58

27

130

52

Loans to Seurities
Companies

369

1,529

422

359

1,514

418

Retail

129

544

146

88

377

102

Stock Lending

175

799

266

102

496

194

Bond Lending

4,114

18,953

5,740

689

3,332

1,128

3,883

8,651

1,480

751

1,434

1,130

Trust Business

776

3,364

722

667

2,616

700

Real Estate Management Business

304

1,197

300

297

1,162

292

Consolidated

Others（mainly
securities investment）

Note）
Figures for each Group company are on a non-consolidated basis (before elimination of consolidation), and the sum ofthese figures does not correspond to the figures for “Operating Revenues (A)” and “Gross Profit (A-B)” .

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～14⚫ Breakdown of Operating Revenues by Business(Margin Loan Business) Both interest on loans and lending fees increased due to an increase in both margin loan andstock loan balances.

Changes in Operating Revenues(￥：mil）

Quarterly

Margin Loan
Business

1Q
Revenue
(YoY)

Point

4,687

(＋216.7%) ✓ Revenues increased

1,121

due to higher
balances.

（ex premium
charges）(+55.3%)

Fees onLending
Securities(+319.8%) ✓ Revenues

3,883(3,565)

1,48
1,113
4

1,113
925
(955)

2,070

925

(167)
393

3,565

Premium
Charges(+370.7%)

1,039

LendingFees(＋89.9%)

318

(840)

(757)
(230)

(157)

increased due to alarge increase instock loan balances.

(1,859)1,484(1,253)

3,883

411

103

168

1Q

2Q

(318)
(199)

(210)

406

407

135

156

3Q

4Q

442
264

FY2022

1Q
FY2023Copyright Japan Securities Finance Co., LTD. All Rights ReservedIntereston
LoansInterest on
collateralmoney ofsecurities
borrowed

442✓ Interest on loans
increased due toincreased marginloan balances.

(＋12.5%) ✓ Interest on

264(+154.6%)

collateral money of
securities borrowed
increased due to anincrease in thebalance of overlent stock loans.

～ All For Securities Market ～15⚫ Breakdown of Operating Revenues by Business(Securities Financing (1))
 Loans for negotiable margin transactions revenue increased due to an increase in
outstanding balances against the backdrop of stock market activity
 Loans to securities companies increased due to continued strong sales of Equity repo
 Loans to retail increased due to improved merchantability, including expansion of eligible
collateral.

Changes in Operating Revenues
Quarterly(¥ mil）

１Q
Revenue

Point

(YoY)

31
369

34

29

387

369

54

58

403

422

Loans for
Negotiable
MarginTransactions

58(+85.4%)Loans to

129

135

139

140

146

1Q

2Q

3Q

4Q

1Q

FY2022

FY2023

Securities

422

Companies(＋14.3%)Loanｓ toRetail146(+13.0%)✓ Loans for negotiablemargin transactions
revenue increased
due to an increase in
outstanding balances✓ Loans to securities
companies increased
due to continued
strong sales of Equity
repo✓ Loans to retailincreased due to anincrease in
outstanding balances＜ Loan Lineup ＞◆ Loans to securities companies: General loans, bon financing,stabilizing fund loans, equity repo (cash-secured stock lending transactions)◆ Loanｓ to retail: Com-STOCK loans
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～16⚫ Breakdown of Operating Revenues by Business(Securities Financing (2))
 Gensaki transactions and repo transactions increased due to strong trading activity against
the backdrop of the Bank of Japan's monetary easing policy, which continued to tighten the
supply-demand balance for JGBs.
 General stock lending increased thanks to recovery of borrowing demand for fail-cover.
Changes in Operating Revenues
Quarterly(¥ mil）
214
153

1Q

4,846

Point

(YoY)

266

255

175

4,107

１Q
Revenue

4,564

2Q

3Q

FY2022

5,410

4Q

5,737

1Q
FY2023GeneralStock
Lending

Bond
Lending

266(+51.5%)5,737(＋39.7%)✓ Increased
revenues thanks
to recovery ofborrowing demand
for fail-cover.

✓ Increased
revenues due tooutstanding
gensakitransactions andrepo transactions
remained at highlevels.

*General stock lending is ・・・➢

Lending stock to securities companies depending on their various demands (ex. fail-cover and arbitrage),
except on demand to settle margin transactions.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～17⚫ Breakdown of Operating Revenues by Business(JSF Trust Bank) Rising stock prices have led to an increase in Trusts for the separate
management of money and securities, while the favorable performance ofasset-backed loan trusts continues to drive up trust fees.
*Consolidated base

Changes in Trust Fees
Quarterly(¥ mil）

１Q
Revenue

Point

(YoY)

324

1Q

339

346

2Q

3Q

336

4Q

FY2022

364

1Q

Trust
Charges364(＋12.5%)✓ Asset-backed loans
driving continued
increase

FY2023

Trust Lineup
Trusts for the separate management ofmoney and securities

Trust for segregated deposits which securities companies receive from customers

Trusts for currency future trading

Trust for segregated guarantee deposits which FX business operators receive from
customers

Crypto-asset related trust

Trust for segregated guarantee deposits which crypt-asset exchangers receivefrom customers

Asset Backed Loan (ABL) Trust

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

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～18⚫ Analysis of YoY Change in Operating Revenue by Business≪Summary of the Significant Points for 1Q≫
 Operating revenue increased by ¥2,589 million (+23.3%) YoY
 In the Margin Loan Business, revenues increased due to an increase in both margin loan and stock loanbalances.

 In the Securities Finance Business, revenues increased in all operations against the backdrop ofstrong transaction needs and other factors.
 In Others, revenues decreased due to the absence of gains on sales of JGBs, etc. in securities
investment resulting from portfolio replacement implemented in the previous fiscal year (operating
expenses also decreased due to the absence of losses on sales of foreign bonds holdings).
 In the Trust Business, trust fees remained strong, while interest income from securities investment
decreased.
+1,629￥：mil+3,207

+27

+53

+16

+90
△2,402△27△513,682
11,092

１Q
FY2022MarginLoan

Loans for
NMT

Loans for
Sec Com

Loans for
RetailStock
Lending

Securities Financing

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

Bond
Lending

Securities
investment
etc.

ー

ー

Trust
Bank

Real
Estate1Q
FY2023～ All For Securities Market ～19⚫ Outstanding Balance of Transactions by Group Business(Average Balance)￥：milTransaction TypeFY2022
１Q

FY2022

FY2023
1Q

Margin Loans

248,573

254,701

279,882

Stock Loans

156,110

188,918

301,249

11,318,568

11,473,992

11,540,958

18,282

18,85633,083

682,635

697,788796,377

Retail

15,586

16,75918,566

General Stock Lending

36,283

63,342

125,628

Bond Lending

10,565,780

10,677,245

10,567,302

Trust Bank Loans

552,120539,931503,160

Securities Financing
Loans for Negotiable
Margin Transaction
Loans toSecurities Companies

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～20⚫ Securities Holdings￥:mil
Securities Holdings

Mar-23Jun-23

Unrealized Profits andLossesB/S Amount

Unrealized Profits andLossesB/S Amount

Equity23,233

10,34927,071

14,187

Bond768,722▲ 16,048

795,188▲ 10,772

JGB&Municipal Bond

356,081▲ 11,630

352,464▲ 8,305

Corporate Bond

340,053▲ 536

369,163

72,587▲ 3,881

73,56016,167

2,623

16,2882,745

808,123▲ 3,075

838,549

6,160

ー(7,416)ー(10,627)

OthersOther Securities
Total（included the effects ofderivatives）

Notes▲ 283 Government guaranteed bonds etc.
▲ 2,184 Foreign government bonds etc.

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

Yen Bond Portfolio （JSF Trust Bank）

Yen Bond Portfolio（JSF）
12,000
8,000
9,798
6,000
4,000
（億円）10,000
2,000
0 years9,424 5 years2.32
Over10
to 10 years
2.69
14/3
14/9

9,210
2.81
9,498
3.67
8,158
2.69
1 year to 5 years
Within3.23
1 year
2.41
14/12
15/3
15/9

6.0
5.0
4.0
3.94
3.0
2.0
（年）
1.0
8,378
3.54
0.0
Averageremaining
period15/12(Note) The average remaining period is calculated excluding held-to-maturity bonds and bonds for which hedge-accounting is applied

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～21⚫ Balance Sheet Summary （consolidated）\mil
Jun-23
Total assets

13,981,306

Cash & Deposit

977,883

Short-term
investments

127,255

Short-term loans
receivable

899,856

Receivables underresale agreements
Collateral money of
securities borrowed
Investments insecurities

Total liabilities

3,833,638
6,948,217
719,733

Change from
Mar-23▲ 74,911▲ 620,391 Deposit at BOJ
JGB and other bonds (Maturity: 1year or
less)Margin loan / Loans for negotiable margin▲ 55,694 transactions / General loans / Trust bankloans

56,241

272,231
Collateral money of bond borrowing
Collateral money of stock borrowing
JGB and other bonds (Maturity: more than
▲ 25,887
1year), Stock

278,395

13,842,062▲ 78,426

Call money

1,116,200▲ 1,074,200

Short-termborrowings

83,010▲ 10,000

487,145

36,145

6,218,698

1,436,897

4,364,092▲ 709,683

1,187,608

316,273

Commercial Paper
Payables under
repurchaseagreements
Collateral money
received of
securities lent
Borrowed moneyfrom trust accountLong-term
borrowings

Total net assets

232,700
139,243

Bank borrowing
Market operation by BOJ

Collateral money of bond lending
Collateral money of stock lending

ー Market operation by BOJ
3,515

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

Features of Assets
The major components of assets are
margin loans (short-term loans
receivable), deposits in current
account balance at the BOJ (cashand deposits), both of which are
subject to daily fluctuations,collateral deposited for the
procurement of securities (collateralmoney of securities
borrowed/receivables under resaleagreements), and securities held forinvestment.
Cash and cash equivalents maychange significantly depending on
the amount of standby funds in thetrust account of JSF Trust andBanking Co., Ltd. and the surplus ofcash position of the Group as awhole.

Features of Liabilities
In addition to market funding, suchas call money and commercial paper,
which can be adjusted daily in orderto address daily changes in assets,major liabilities are collateraldeposits received against lending
securities (collateral money
received of securities lent/payables
under repurchase agreements).
Ref) Capital adequacy ratio*
at the end of Jun 2023: 507％
*Based on FIEA

～ All For Securities Market ～22⚫ Margin Transactions & Loans for Margin Transactions

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～23

MarginTransaction

Loans for Margin
Transaction

Margin buying order
Margin selling order

Margin loan
application
Stock loan application

Stock

Institutional
Investors

Securities
Companies

Fund (Margin loan)
Stock (Stock loan)

JSF

Fund for purchasing
Stock to sell

BrokerInvestor⚫ Structure of Margin Transactions& Loans for Margin Transactions

Funds

Call Market

Purchased stock
Sale proceeds
Bank ofJapan

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 (lendingfees) ＝(B)×0.40％
Interest on collateral money of
securities borrowed＝(C)×0.60％

Operating expenses:
Interest on borrowing＝(E)×funding rate

◆Besides the above, premium charges are posted in operating revenues (fees on
lending securities) in part of over-lent stock loans. However, the same amount isposted in operating expenses (fees of borrowing charges), so the amount ofpremium charges does not affect our profit.
Revenue: Fees on lending securities (premium charges) = Expenses: Fees onborrowing securities (premium charges) = (C)‘×rate of premium charges
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～25⚫ About the Margin Loan Rate

LendingFee
0.40%

Securities
Company

Loan Rate
0.60%

BOJ Policy Interest Rate

Stock Loan

JSF

Securities
Company

Margin Loan◼

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 an interest rate to monetary baseJan 2016 Embraced negative interest rates
Sep 2016 Introduced QQE with yield curve control◼

Interest on Collateral
Money: 0%◼
◼

Margin Loan Rate◼

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％）◆ The margin loan rate is decided byreflecting the changes in market rates andthe BOJ’s Policy Interest Rate.
Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～26⚫ Our Group Companies

Subsidiary
Affiliate（ ) Shareholding Ratio

Japan Securities Finance（100%）（100%）Nihon
Building

JSF
Trust Bank

Shareholding
Ratio

100%

Name

JSF Trust and Banking Co., Ltd.

100%

Nihon Building Co., Ltd.

20.0%

Japan Information Processing Service Co., Ltd

20.8%

JSF Information Technology Co., Ltd

Copyright Japan Securities Finance Co., LTD. All Rights Reserved（20.0%）（20.8%）

Japan Information
Processing

JSFIT

Capital(mill yen)

Business Overview

14,000Trust service and banking
service

100

Real estate ownership andleasing
Real estate trading andbrokerage

2,460

Information processing services
Software development and sales

100

Information processing services
Software development and sales～ All For Securities Market ～27⚫ Rating Information

JCR

R&I

Standard &Poor’s

As of 30/Jun/2023

Japan
Securities Finance

RatingOutlookRatingOutlookRatingOutlookLong-term

AA-

StableAA-

StableA

StableShort-term

J-1+

a-1+

（Highest）（Highest）

¥1tri

¥1tri

CP Issue

A-1―※Euro-yen CP issuance limit set at US$3 billion (S&P)

JSF TrustBank

Long-termAA-

Short-term

J-1+

a-1+

（Highest）（Highest）

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

AA-

Stable――――～ All For Securities Market ～28

● 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 andBonds)

Financial
Institutions

SubsidiaryBusiness

Loan to Securities
Companies

Investors

Margin Loan BusinessBorrower

Securities Companies

For
Standardized
MarginTransactions＜Securities＞

Institutional
Investors andSecurities
Companies, etc.

Copyright Japan Securities Finance Co., LTD. All Rights Reserved～ All For Securities Market ～29

NoticeThis document includes statements relating to business forecasts.
These statements do not guarantee future business performance;
they contain risks and uncertainties. Future business performance
may vary significantly depending on the stock market and financial
conditions or other factors.

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