Japan Securities Finance Co.,Ltd.
Consolidated Financial Results
for the First half ended September 30, 2003
Name：Japan Securities Finance Co.,Ltd.
Listing：First Section, Tokyo Stock Exchange
Stock code number：8511
Address：1−2−10, Nihonbashi Kayaba−cho, Chuo−ku, Tokyo 103−0025,Japan
Phone：＋81−3−3666−3184

1.Financial Results for the first half of Fiscal 2003(April 1,2003−September 30,2003)(1)Results of operations(Millions of yen, except per−share figures, rounded down to nearest million)

Operating revenue

Operating profit(％ change from previous year)(％ change)

Ordinary profit(％ change)

First half of
Fiscal 2003
First half of
Fiscal 2002

14,748

△5.5

2,254

△30.7

1,980

43.7

15,605

△0.1

3,253

166.1

3,518

53.4

Fiscal 2002

28,661
Net income pershare

Net income

Fiscal 2002

Net income pershare

1,051

△49.4

10.41

‑

2,076

5.4

19.46

‑

15.86

‑

1,746

4,719

(fully diluted)(％ change)

First half of
Fiscal 2003
First half of
Fiscal 2002

4,805

Notes:1.Gain/loss on investments based on equity method:¥△517million(First half of fiscal 2002:¥31million、fiscal 2002:¥△459million)
2.Average number of shares outstanding (consolidated):100,995,337(First half of fiscal 2002:106,701,095、fiscal 2002:105,250,697)
3.Changes in accounting method: Not applicable
4:Percentage figures shown in the operating revenue, operating profit, ordinary profit and net income
columns indicate year‑on‑year changes for those items.

(2)Financial position(Millions of yen, rounded down to nearest million)

Total assets

Shareholders’equityEquity ratio

Equity pershare(Yen)

As of Sep.30, 2003

7,356,357

107,2171.8

1,075.39

As of Sep.30, 2002

3,809,512

118,603

4.11,124.61

Fiscal 2002

4,031,339

118,361

3.5

1,169.05

Notes: Number of shares outstanding as of Sep.30,2003 (consolidated):99,700,392(As of Sep.30,2002:105,461,704、Fiscal 2002:101,180,670)

1

(3)Cash flows(Millions of yen, rounded down to nearest million)

Cash flows
from operating
activities

Cash flows
from investing
activities

Cash flows
from financing
activities

Cash and cash
equivalents at
end of year

First half of
F i s c a l 2 0 0 3
First half of
F i s c a l 2 0 0 2

88,9394,270△1,446

115,435

18,830△1,132△1,34438,328

Fiscal

12,096△7,396△3,003

23,671

2002(4)Included in scope of consolidation or applicable under equity method
Consolidated subsidiaries：3
Non‑consolidated subsidiaries：0
Affiliates：2(5)Changes in scope of consolidation or equity method
Consolidated subsidiaries
Newly included：0
Newly exempted：0
Affiliates(based on equity method)
Newly included：0
Newly exempted：0
2.Forecast for fiscal 2003(April 1,2003−March 31,2004)(Millions of yen, rounded down to nearest million)

OperatingRevenue
Full‑year

Ordinary Profit

30,0005,000

Note：Forecast net income per share：¥29.32

2Net income
3,000Consolidated Balance Sheets【Assets】

First half
Sep.30,2003

First half
Sep.30,2002

Fiscal 2002
Mar.31,2003(millions of yen) (% ratio) (millions of yen) (% ratio) (millions of yen) (% ratio)

Current Asset

4,921,162

Cash and Bank Deposits

115,437

38,376

23,698Call Loans

124,000

178,400

300,000

Securities

756,915

1,017,663

997,258

1,779,980

590,289645,761

Securities Lent

620,900

587,269

493,339

Securities in Custody

205,960

128,775

83,171

Securities on Deposit443,361

193,258

108,412Deferred Tax Assets

742464448

Collateral Money forSecurities Borrowed

866,798

860,594

782,893

Other Current Assets

7,858

2,168

21,626

Less : Allowance for BadDebts

△ 793

△ 559

△ 605

Loans

Fixed Assets

2,435,195

66.9

33.1

3,596,700

212,81194.4

5.6

3,456,005

575,333

85.7

14.3

Tangible Fixed Assets

6,959

7,084

6,906

Intangible Fixed Assets

4,173

2,415

4,192

2,424,172

203,405

564,344

△ 110

△ 94

△ 109

3,809,512 100.0

4,031,339 100.0

Investments, etc.
Less : Allowance for Bad
Debts
Total Assets

7,356,357 100.03

【Liabilities andShareholders' Equity】

First half
Sep.30,2003

First half
Sep.30,2002

Fiscal 2002
Mar.31,2003(millions of yen) (% ratio) (millions of yen) (% ratio) (millions of yen) (% ratio)

Current Liabilities

7,235,358 98.4

3,680,346 96.6

3,907,164 96.9

Call Money

1,087,200

825,900

918,500

Bills sold

1,453,600

413,500

297,500

Short-Term Borrowing

973,320244,330

674,820

Commercial Paper

148,000

155,500

85,100Borrowings on Gensaki
transaction
Collateral Money forSecurities Lent
Collateral Securities
Deposited

195,327-

246,637

1,806,103

1,028,471

893,460

794,588481,204

332,139

Securities Borrowed

475,634

428,098

352,784

Other Liabilities

301,585

103,341

106,223

Fixed Liabilities

13,782

Allowance for Employees
Retirement Benefits

3,446

3,335

3,397

Other Fixed Liabilities

10,335

7,226

2,414

Total Liabilities

7,249,140

98.5

3,690,908

96.9

3,912,977

97.1

Capital Stock

10,0000.1

10,0000.3

10,0000.2

Capital Surplus

5,181

0.1

5,181

0.1

5,181

0.1

Earned Surplus

99,331

1.4

101,485

2.7

99,4942.5△ 130Losses from Revaluationof Land
Gains from Revaluationof Other Securities
Self-Stock
Total Shareholders'Equity
Total Liabilities andShareholders' Equity

0.2△ 7,086 △ 0.1△ 1970107,217

1.5

7,356,357 100.0

4

10,562

0.2

5,812

0.1

△ 12 △0.0△ 12 △0.0

2,147

3,8940.1△ 198 △0.0
118,603

3.1

3,809,512 100.0

0.1△196 △0.0
118,3612.9

4,031,339 100.0

Consolidated Statement of Income
First half
Sep.30,2003

First half
Sep.30,2002

Fiscal 2002
Mar.31,2003(millions of yen) (% ratio) (millions of yen) (% ratio) (millions of yen) (% ratio)

Operating Revenues

14,748 100.0

15,605 100.0

28,661 100.0

Interest on Loans
Interest on Collateral Moneyfor Securities Borrowed
Fees on Lending Securities

2,364

2,755

4,727

806

1,098

1,820

5,959

7,269

13,576

Other Operating Revenues

5,618

4,482

8,537

8,187 55.5

8,293 53.1

15,747 54.9

Operating Expenses
Interest on Borrowing

514

453884

Interest on Commercial Paper

192556

Fees on Borrowing Securities
General and AdministrativeExpenses
Other Operating Expenses4,639

5,976

11,2294,306 29.2

4,058 26.0

3,576

3,013

1,838

8,108 28.3

2,254 15.3

3,253 20.8

4,805 16.8

Operating Profit
Non-Operating Profit

250

1.7273

1.7

401

1.4

Non-Operating Expenses

524

3.6

90.1

487

1.7

Ordinary Profit

1,980 13.4

3,518 22.5

4,719 16.5

Extraordinary Profit

231

1.6349

2.2

504

1.8

Extraordinary Loss

180.1

343

2.2

1,761

6.1

Income before Taxes
Corporate, Residence andEnterprise Taxes
Adjustments for Corporate
Taxes, etc.
Net Income

2,193 14.9

3,523 22.6

3,462 12.11,456

9.9

1,632 10.5

1,786

△ 315 △ 2.1△ 185 △ 1.2△ 71 △ 0.2

1,051

2,076 13.3

1,7467.1

56.2

6.1

Consolidated Average Outstanding Balance of Loans
First half
Apr.1,2003Sep.30,2003

First half
Apr.1,2002Sep.30,2002

Fiscal 2002
Apr.1,2002Mar.31,2003(millions of yen) (% ratio) (millions of yen) (% ratio) 0 millions of yen) (% ratio)

Loans for Margin
Transactions
Bond Financing

4,480 39.9

General Loans
Trust Bank Loans

5,063 75.9

4,094 72.7

80.1

1251.9

79

1.4

405

3.64847.34578.1

6,243 55.5

2674.0598 10.6

Loans on Gensaki Transaction

710.6

699 10.5

3726.6

Other Loans

330.3

30

310.6

Total

11,242 100.0

0.4

6,670 100.0

5,635 100.0

Segment Information for Consolidated Operating Revenues
First half
Apr.1,2003Sep.30,2003

First half
Apr.1,2002Sep.30,2002

Fiscal 2002
Apr.1,2002Mar.31,2003(millions of yen) (% ratio) (millions of yen) (% ratio) (millions of yen) (% ratio)

Securities Finance Business
Loans for MarginTransactions(Interest on Loans)
Bond financing andGeneral Loans
Securities Lent

13,218 89.6

13,969 89.5

25,296 88.3

7,443 50.5

9,206 59.0

16,680 58.2

1,407

9.5

1,568 10.0

2,535

8.8

478

3.2

689

4.4

1,238

4.3

826

5.6

799

5.1

1,409

4.9

(Stocks Lent)

380

2.6

342

2.2

638

2.2

(Bonds Lent)

445

3.0

457

2.9

770

2.7

1,459

9.9

99

0.7

890.6

206

0.7

489

3.3

465

3.0

980

3.4

2,521 17.1

903

5.8

1,864

6.5

Trust Banking Business(Trust Fee)
Real Estate Business
Others1,904 12.2

3,122 10.9

Information Service Business

1,529 10.4

1,636 10.5

3,365 11.7

Total

14,748 100.0

15,605 100.0

28,661 100.06