This English version is a translation of the original Japanese document and is only for reference purposes. In the case where
any differences occur between the English version and the original Japanese version, the Japanese version will prevail. The
financial results written in the original Japanese document is not audited by independent auditors.

April 28, 2011

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2011
[under Japanese GAAP]
Company name: Mitsubishi UFJ Securities Holdings Co., Ltd.
URL:
http://www.hd.sc.mufg.jp/
Representative: Fumiyuki Akikusa, President & CEO
Contact:
Mitsugu Enjouji, General Manager, Financial Planning Division
TEL: (03) 6213-2550
Scheduled date of General Shareholders’ Meeting:June 28, 2011
Scheduled date to file Securities Report:
June 28, 2011
Supplementary material on financial results: None
Financial results presentation meeting:
None(Millions of yen with fractional amounts disregarded)

1.

Consolidated performance for the fiscal year 2010
(from April 1, 2010 to March 31, 2011)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen
FY2010202,262

FY2009343,824

Net operating revenue% Millions of yen(41.2)

139,866(26.2)

287,153

Net income

Operating income% Millions of yen(51.3)(115,027)

24.9

24,049Net income per share

Ordinary income% Millions of yen%–(95,859)––

41,022–

Diluted net income
per share

Yen
Millions of yen%(50,440)(70.35)FY2010–28,748FY2009–40.10(Note)
Comprehensive income
FY2010: (123,652) million yen (– %)FY2009:(Reference) Equity in earnings (losses) of affiliates FY2010: 12,712 million yen
FY2009:228 million yen

Net income/equity

Yen
%
–
(8.4)
40.09
4.7
62,778 million yen (– %)(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As of March 31, 2011

Millions of yen
20,486,251

Millions of yen
802,106%
2.7

Yen
778.14As of March 31, 2010

20,134,713

701,6543.2

889.78(Reference) Equity
As of March 31, 2011: 557,913 million yen
As of March 31, 2010:(Note)“Equity ratio” is computed under the formula shown below:(Total net assets – Subscription rights to shares – Minority interests) / Total assets

637,962 million yen

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities(Millions of yen)
Cash and cash
equivalents at end of
periodFY2010258,942

64,820162,018

612,678

FY2009(605,490)(26,401)

650,194

132,196

2.

Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): Yes
Newly consolidated: 1 company (MM Partnership)(2) Changes in accounting policies, procedures, and methods of presentation
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None
(3) Number of issued shares (common stock)
a.

b.

c.

Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2011

716,985,496 shares

As of March 31, 2010

716,985,496 shares

Number of shares of treasury stock at the end of the period
As of March 31, 2011

– shares

As of March 31, 2010

– sharesAverage number of shares during the period
Fiscal year ended March 31, 2011

716,985,496 sharesFiscal year ended March 31, 2010

716,985,496 shares<* Indication regarding execution of audit procedures >This financial results report is exempt from the audit procedures for financial statements pursuant to
the Financial Instruments and Exchange Act. At the time of disclosure of this financial results report,
the audit procedures for financial statements are in progress.
<* Other special matters>
NoneAttached Material

Index
1.

Consolidated financial statements(1) Consolidated balance sheets·························

P. 1(2) Consolidated statements of income·························

P. 4(3) Consolidated statements of comprehensive income·························

P. 6(4) Consolidated statements of changes in net assets·························

P. 7(5) Consolidated statements of cash flows·························

P. 10

2.

Notes on premise of going concern·························

P. 12

3.

Key items forming the basis of preparation of consolidated financial
statements·························

P. 12

Changes of key items forming the basis of preparation of consolidated
financial statements·························

P. 15(Notes to consolidated statements of comprehensive income)·························

P. 16(Segment information)·························

P. 16(Per share information)·························

P. 18(1) Breakdown by item·························

P. 19(2) Breakdown by product·························

P. 19

Net trading income·························

P. 19·························

P. 20

4.
5.

Notes to consolidated financial statements<Reference>
Consolidated Financial Results for the Fiscal Year Ended March 31, 2011
1.

2.

Commission received

Quarterly Trends in Consolidated Statements of Income<Reference>Non-consolidated Financial Results of Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. for the Fiscal
Year Ended March 31, 2011
(1) Non-consolidated operating results·························

P. 21(2) Non-consolidated financial position·························

P. 22

1.

Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2010ASSETS
Current assets
Cash and deposits
Cash segregated as deposits
Trading products
Trading securities and other
Derivatives
Trade date accrual
Private equity and other securities
Operating loans
Margin transaction assets
Loans on margin transactions
Cash collateral pledged for securities
borrowing on margin transactions
Loans secured by securities
Cash collateral pledged for securities
borrowed
Loans on Gensaki transactions
Advances paid
Short-term guarantee deposits
Short-term loans receivable
Stocks of parent company
Short-term investment securities
Income taxes receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Equipment
Land
Lease assets
Construction in progress
Intangible assets
Software
Other
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total noncurrent assets
Total assets

1

As of March 31, 2011

168,469
91,588
11,395,146
6,538,721
4,856,424
109,281
67,6501,448
59,02045,958618,340
79,89910,196,705
3,927,867
6,268,837
23,40065,901
495
53,577
42,10013,062

11,477

6,765,283

7,835,342

3,180,267

3,292,741

3,585,015
4,962
435,248
111
302
327,962
1,482
19,473103,931(967)

4,542,601
8,302
500,84492
236
182,384
1,282
10,22041,034(449)

19,550,395

19,617,609

23,441
10,391
7,626
5,357
5
60
45,50844,165
1,343
515,368
489,398
3,395
5,546
20,989(3,962)

23,843
11,123
6,673
5,300
2
743
39,80538,6391,165
804,992
751,895
3,336
4,258
49,380(3,878)584,318

868,641

20,134,713

20,486,251

(Millions of yen)
As of March 31, 2010

As of March 31, 2011

LIABILITIESCurrent liabilities
Trading products

7,540,898

8,908,654

Trading securities and other

2,932,436

2,847,019

Derivatives

4,608,461

6,061,635

23,908

11,220Borrowings on margin transactions

18,254

7,948

Cash received for securities lending on
margin transactions

5,653

3,272

Margin transaction liabilities

Loans payable secured by securities

8,307,900

6,782,909

Cash received on debt credit transaction of
securities

3,038,736

1,925,479

Borrowings on Gensaki transactions

5,269,163

4,857,429

132,382

77,405

Deposits received
Guarantee deposits received

438,558

771,416

Short-term loans payable

1,367,784

1,369,308

Current portion of long-term loans payable

108,058

32,300Commercial papers

374,700

438,800

Current portion of bonds

85,130131,106

Income taxes payable

5,901

4,716

Provision for bonuses

20,63013,022–895

Asset retirement obligations
Other current liabilities

59,64868,610Total current liabilities

18,465,501

18,610,367

Bonds payable

681,530

638,231

Long-term loans payable

266,947

409,799

Noncurrent liabilities

Deferred tax liabilities

4,363

6,783

Liability for retirement benefits

10,773

10,718

415

487

–

4,209

Liability for directors’ retirement benefits
Asset retirement obligations
Other noncurrent liabilities

1,665

2,176

Total noncurrent liabilities

965,696

1,072,405

Reserve for financial products transaction
liabilities

1,861

1,371

Total reserves under the special laws

1,861

1,371

19,433,059

19,684,144

Reserves under the special laws

Total liabilities

2

(Millions of yen)
As of March 31, 2010

As of March 31, 2011

NET ASSETS
Shareholders’ equity
Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

184,580

126,812

Total shareholders’ equity

667,047

609,280(5,382)(7,682)24

6Foreign currency translation adjustment(23,726)(43,690)

Total accumulated other comprehensive income(29,085)(51,366)

04Minority interests

63,691

244,188

Total net assets

701,654

802,106

20,134,713

20,486,251

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Subscription rights to shares

Total liabilities and net assets3(2) Consolidated statements of income(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Operating revenue
Commission received

185,669

161,494

Net trading income
Net gain (loss) on private equity and othersecurities
Other net gain on goods trading

100,418(27,195)(2,649)

186

(9)

4

Financial revenue

60,396

67,772

Total operating revenue

343,824202,262

Financial expenses

56,671

62,395

Net operating revenue

287,153

139,866

Trading related expenses

74,852

74,047

Personnel expenses

110,023

99,592

Real estate expenses

25,72826,082

Office cost

21,72924,311

Depreciation

21,85921,652

Taxes and dues

2,485

2,737

Selling, general and administrative expenses

Provision of allowance for doubtful accounts
Other
Total selling, general and administrative
expenses
Operating income (loss)

999

–

5,425

6,470

263,103

254,894

24,049(115,027)

Non-operating income
Interest income
Equity in earnings of affiliates
Gain on valuation of investment securities

8,379

5,032

228

12,712

8,053

－

Other

2,498

4,369

Total non-operating income

19,16022,114

Interest expenses

713

663

Loss on retirement of noncurrent assets

443

655

Foreign exchange losses

256

1,122

Other

773

504

2,187

2,946

41,022(95,859)

Non-operating expenses

Total non-operating expenses
Ordinary income (loss)

4

(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Extraordinary income
Gain on sales of investment securities

1,511

175

Gain on sales of noncurrent assets

015Gain on negative goodwill
Reversal of reserve for financial products
transaction liabilities
Reversal of allowance for doubtful accounts

–

943

3

489

–

71

Gain on change in equity
Total extraordinary income–

27,913

1,515

29,608

9

549

660

320

Extraordinary loss
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on sales of noncurrent assets

71

2

1,082

3,525

Compensation for damage, etc.

726–

Loss related to M&A

469–

Integration-related expenses

289

193

Loss on liquidation of subsidiaries

129–

Head office transfer cost–

492

Early extra retirement payments
Loss on adjustment for changes of accounting
standard for asset retirement obligations

–

5,640

–

2,473

Impairment loss

Total extraordinary losses

3,440

13,199

Income (loss) before income taxes and minority
interests

39,097(79,450)

Income taxes-current

12,838

7,744

Income taxes-deferred(9,883)

13,385

Total income taxes

2,954

21,130–(100,580)

Minority interests in income (loss)

7,394(50,140)

Net income (loss)

28,748(50,440)

Income (loss) before minority interests5(3) Consolidated statements of comprehensive income(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Income (loss) before minority interests(From April 1, 2010
to March 31, 2011)–(100,580)–(2,954)

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

(17)

–

Foreign currency translation adjustment–(19,372)

Share of other comprehensive income ofassociates accounted for using equity method

–

(727)

Total other comprehensive income–*2(23,071)–*1(123,652)

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests

6–(72,721)–(50,931)(4) Consolidated statements of changes in net assets(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Shareholders’ equity
Capital stock
Balance at the end of previous period

65,51865,518––65,51865,518416,948

416,948––

416,948

416,948

170,580

184,580

Dividends from surplus(14,748)(7,327)

Net income (loss)

28,748(50,440)

Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period

Total changes of items during the period
Balance at the end of current period

13,999(57,767)

184,580

126,812653,047

667,047

Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus(14,748)(7,327)

Net income (loss)

28,748(50,440)

Total changes of items during the period
Balance at the end of current period

713,999(57,767)

667,047

609,280

(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period(From April 1, 2010
to March 31, 2011)(19,687)(5,382)

14,304(2,299)14,304(2,299)(5,382)(7,682)

–

24

24

(17)

24

(17)

24

6

(35,680)(23,726)

11,953(19,963)

Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

11,953(19,963)(23,726)(43,690)(55,368)(29,085)

26,282(22,281)

Total accumulated other comprehensive income
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

26,282(22,281)(29,085)(51,366)

0

0

–

4

–

4

0

4

Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period8For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)(Millions of yen)
For the fiscal year ended
March 31, 2011
(From April 1, 2010
to March 31, 2011)

Minority interests
Balance at the end of previous period

59,75863,691

3,933

180,496

Total changes of items during the period

3,933

180,496

Balance at the end of current period

63,691

244,188

657,438

701,654

Dividends from surplus(14,748)(7,327)

Net income (loss)
Net changes of items other than shareholders’equity28,748(50,440)

30,216

158,219

Total changes of items during the period

44,216

100,452

Balance at the end of current period

701,654

802,106

Changes of items during the period
Net changes of items other than shareholders’equityTotal net assets
Balance at the end of previous period
Changes of items during the period9(5) Consolidated statements of cash flows(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Cash flows from operating activities
Income (loss) before income taxes and minority
interests
Depreciation and amortization
Amortization of goodwill
Gain on negative goodwill
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for financial
products transaction liabilities
Interest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of noncurrent assets
Loss (gain) on change in equity
Impairment loss
Compensation for damage, etc.
Loss related to M&A
Integration-related expenses
Loss on liquidation of subsidiaries
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Head office transfer cost
Early extra retirement payments
Decrease (increase) in cash segregated as
deposits for customers
Decrease (increase) in trading products-assets(liabilities)
Decrease (increase) in trade date accrual
Decrease/increase in assets/liabilities for margintransaction
Decrease/increase in loans/borrowings secured
by securities
Decrease/increase in advance paid/deposits
received
Decrease (increase) in short-term guarantee
deposits
Increase (decrease) in guarantee deposits
received
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Compensation for damage, etc. paid
Payments for loss related to M&A
Integration-related expenses paid
Payments for loss on liquidation of subsidiaries
Head office transfer cost paid
Income taxes paid
Net cash provided by (used in) operating
activities

10(From April 1, 2010
to March 31, 2011)

39,097(79,450)

21,859(233)–

21,652
589
(943)

1,605

92

4

71

685

(600)

(3)

(489)

(69,664)
57,385(228)(1,501)(7,393)
71
–
1,082
726
469
289
129

(73,699)
63,058(12,712)374(1,058)(12)(27,913)
3,525
–
–
193
–

–

2,473

–
–

492
5,640

(12,940)

12,204(854,795)

2,335,451

235,534

88,582(16,244)(7,360)19,959(2,446,029)

52,122(59,469)

77,543(99,671)(114,821)

353,270(38,589)(607,851)
75,617(57,860)
(726)
(469)
(260)
(58)
－
(13,881)

162,313240,576
84,530(56,286)
–
–
(222)
–
(209)
(9,446)(605,490)

258,942(Millions of yen)
For the fiscal year ended
March 31, 2011

For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales and redemption of securities
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Decrease (increase) in call and other loans
Payments for sales of investments in subsidiaries
resulting in change of scope of consolidation
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
payableIncrease (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Payments of cash dividends to minority
shareholders
Proceeds from stock issuance to minority
shareholders
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

11(From April 1, 2010
to March 31, 2011)(3,558)12,293(225,307)
157,910(46,810)(6,985)
11,699(542,273)
464,020(66,939)

91,727

223,759(3,006)(6,467)

1,532

23(12,625)
1,453(11,847)
78

(10)

–

–

(247)

(26,401)

64,820374,043

2,042

228,200
79,583(108,110)
255,167(162,850)(14,748)

64,100207,552(145,162)
206,965(165,042)(7,327)(1,208)(1,284)117

175

650,194

162,018

4,680(5,299)22,982
109,213132,196

480,482
132,196
612,678

2.

Notes on premise of going concern
None

3.

Key items forming the basis of preparation of consolidated financial statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 31 companies (previous year: 30 companies)
Names of principal consolidated subsidiaries
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (Note 1)
KOKUSAI Asset Management Co., Ltd.
MUS Principal Investments Co., Ltd.
MU Hands-on Capital Ltd.
MUS Business Service Co., Ltd.
MUS Information Systems Co., Ltd.
MUS Facility Service Co., Ltd.
Big Wing Investment Co., Ltd.
Mitsubishi UFJ Securities International plc
Mitsubishi UFJ Wealth Management Bank (Switzerland), Ltd.
Mitsubishi UFJ Securities (USA), Inc.
Mitsubishi UFJ Securities (HK) Holdings, Limited
Mitsubishi UFJ Securities (HK), Limited (Note 2)
MUSHK Limited. (Note 3)
Mitsubishi UFJ Securities (Singapore), Limited
Ling Zheng Investment Consulting (Shanghai) Co., Ltd.
TMI Nominees Limited
MFHK Nominees Limited
MUS Roosevelt Capital Partners, Ltd.
MUS Roosevelt Capital Advisers (HK), Limited
MUS Roosevelt China Pacific Fund, L.P.
MM Partnership
Corporate Value Up Fund Investment Limited Liability Partnership
THC Millennium Venture Capital Investment Limited Partnership
THC Phoenix Japan Venture Capital Investment Limited Partnership
Hands-on No.1 Venture Capital Investment Limited Partnership
Hands-on No.1-2 Venture Capital Investment Limited Partnership
NCS Holdings Co., Ltd.
Fukuin Co., Ltd.
(Note 1) Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. has changed its trade name ofcompany from Mitsubishi UFJ Securities Co., Ltd. (trade name of the company changed
from Mitsubishi UFJ Securities Spin-off Preparation Co., Ltd. as of April 1, 2010) as of
May 1, 2010.
(Note 2) Mitsubishi UFJ Securities (HK), Limited has changed its trade name of company from
Mitsubishi UFJ Securities (HK) Capital, Limited as of December 31, 2010.
(Note 3) MUSHK Limited. has changed its trade name of company from Mitsubishi UFJ Securities(HK), Limited as of December 31, 2010.

(Addition)
MM Partnership
The above entity was newly consolidated upon its establishment.

12(2) Names of companies or other entities not considered to be subsidiaries although theCompany holds, in its own calculation, the majority of voting rights (business execution
rights) of the companies and entities
THC AP Venture Capital Investment Limited Partnership
Shonan Industry-University Joint Incubation Fund Venture Capital Investment Limited
Partnership
Gunma Challenge Fund Venture Capital Investment Limited Partnership
FOODSNET Corporation
YAMAGATA FOODS Co., Ltd.
GREEN BELL Co., Ltd.
PATLITE Corporation
Dream Infinity Inc.
Nippon Computer Systems Corp.
(Reasons for not treating as subsidiaries)
The companies were not treated as subsidiaries because they were held by the Company’s
consolidated subsidiaries engaged in the venture capital business that maintained theposition of general partner in those partnerships in order to render quasi-administrative
services as their main businesses, or because their shares and other instruments were held
as business transactions for such purposes of incubation business, business revitalization
and acquiring capital gains thereby and were not intended to place the companies undercontrol.
2. Application of equity method(1) Seventeen affiliates are under the equity method (previous year: 17 companies)
Names of principal affiliates under equity method
Morgan Stanley MUFG Securities Co., Ltd.
Marunouchi Capital Co., Ltd.
KE Capital Partners Pte. Ltd.
Kim Eng Holdings Limited
Sino Roosevelt Investment Partners Limited(Addition)
Morgan Stanley MUFG Securities Co., Ltd.
The above company was included in the scope of affiliates under equity method upon the
Company’s acquisition of voting rights of the company.
(Exclusion)Works Capital Inc.
The above company was excluded from the scope of affiliates under equity method due toits completion of liquidation.
(2) Names of companies or other entities not treated as affiliates although the Company holds, in
its own calculation, between 20% and 50% of the voting rights of the companies and entities
SuperIndex inc.
Centillion II Venture Capital Corporation
REVO TRADING Co., Ltd.
(Reason for not treating as affiliates)
The companies were not treated as affiliates because their shares and other instruments
were held as business transactions by the Company’s consolidated subsidiaries engaged in
the venture capital business for such purposes of incubation business, business
revitalization and acquiring capital gains thereby and were not intended to place thecompanies under control.

133. Financial closing dates and other details of consolidated subsidiaries
The financial closing dates of consolidated subsidiaries are as follows.
End of August
1 subsidiary
End of December 22 subsidiaries
End of February
1 subsidiary
End of March
7 subsidiaries
Of the consolidated subsidiaries whose financial closing date differs from the consolidated
financial closing date, 23 subsidiaries for which the difference in closing dates was three months
or less were accounted for based on the financial statements as of the financial closing date ofeach subsidiary. However, necessary adjustments were made to the consolidated financial
statements for any significant transactions that took place between the end of the fiscal year ofeach subsidiary and the end of the consolidated fiscal year. With regard to the one subsidiary forwhich the difference in closing dates exceeded three months, the accounts were provisionallyclosed at the end of the consolidated fiscal year for the preparation of financial statements.
4. Accounting policies(1) Major hedge accounting
1) Hedge accounting
Fair value hedge and deferred hedge that specifies foreign exchange contracts (foreignexchange swap transactions) and interest rate swaps as hedging instruments wereadopted.
2) Hedging instruments and hedged items
a. Exchange rate volatility risk
Hedging instruments:
foreign exchange contracts (foreign exchange swap
transactions)
Hedged items:
foreign currency denominated financial assets (othersecurities and ownership in investments in overseas
subsidiaries, etc.)
b. Interest rate volatility risk
Hedging instruments:
interest rate swaps
Hedged items:
investment securities (other securities)
3) Hedging policy
Foreign exchange contracts (foreign exchange swap transactions) are used to avoid theexchange rate volatility risk in part of foreign currency denominated financial assets,
while interest rate swaps are used to avoid the interest rate volatility risk in certain
investment securities (other securities). As such, hedged items are identified on an
individual contract basis.
4) Method for assessing the effectiveness of hedging activities
The effectiveness of hedged items and hedging instruments is periodically assessed.
(2) Method and period of amortization of goodwill
Amortization period is estimated based on the status of relevant subsidiary for every
recognition of goodwill, and goodwill is amortized in equal portions over the estimated years
within 20 years. If goodwill amount is immaterial, the goodwill is written off completely inthe fiscal year in which it arises.
(3) Scope of cash in the consolidated statements of cash flows
Cash and cash equivalents include cash on hand and deposits readily convertible to cash
including current deposits and ordinary deposits (excluding time deposits with a deposit
period of over three months).
Disclosure of the items other than above was omitted because there were no significant
changes from the latest Securities Report (submitted on June 28, 2010).

14

4.

Changes of key items forming the basis of preparation of consolidated financial
statements
1. Application of Accounting Standard for Asset Retirement Obligations
Effective from the fiscal year under review, the Company adopted the “Accounting Standard for
Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31,2008).
As a result, operating loss and ordinary loss each increased by 572 million yen and loss before
income taxes and minority interests increased by 3,045 million yen. The change in asset
retirement obligations due to the adoption of this accounting standard and guidance was 3,892
million yen.
2. Application of Accounting Standard for Business Combinations and others
Effective from the fiscal year under review, the Company adopted the “Accounting Standard forBusiness Combinations” (ASBJ Statement No. 21, December 26, 2008), the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, December 26, 2008),
the “Partial Amendments to Accounting Standard for Research and Development Costs” (ASBJ
Statement No. 23, December 26, 2008), the “Accounting Standard for Business Divestitures”(ASBJ Statement No. 7, December 26, 2008), the “Revised Accounting Standard for Equity
Method of Accounting for Investments” (ASBJ Statement No. 16, December 26, 2008) and the“Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard
for Business Divestitures” (ASBJ Guidance No. 10, December 26, 2008).

15

5.

Notes to consolidated financial statements(Notes to consolidated statements of comprehensive income)For the fiscal year ended March 31, 2011 (From April 1, 2010 to March 31, 2011)*1. Comprehensive income for the fiscal year immediately before the fiscal year ended March 31,
2011
Comprehensive income attributable to owners of the parent
55,031 million yen
Comprehensive income attributable to minority interests
7,747
Total
62,778*2. Other comprehensive income for the fiscal year immediately before the fiscal year ended March
31, 2011
Valuation difference on available-for-sale securities
14,381 million yen
Deferred gains or losses on hedges
24
Foreign currency translation adjustment
11,588
Share of other comprehensive income of associates642
accounted for using equity method
Total
26,636(Segment information)
For the fiscal year ended March 31, 2011 (From April 1, 2010 to March 31, 2011)
1. Overview of reportable segments
The Company and its consolidated subsidiaries (the “Group”) identify the reportable segment as acomponent unit that constitutes a business for which discrete financial information is available
and is regularly reviewed by the Board of Directors to make decisions about the allocation of
resources to the segment and assess its performance.
The Group is engaged in business activities centered on financial instruments business in many
areas and provides services relating to investment and financing services. While promoting
cooperation among group companies under control, the Company, as a holding company ofsecurities companies, makes decisions about the allocation of resources and assesses theperformance of each group company by type of service.
Therefore, the Group’s segments are distinguished by the service and the geographical area, andthus the following items are identified as reportable segments: “Securities Brokerage (Japan),”“Securities Brokerage (U.K.),” “Securities Brokerage (U.S.A.)” and “Asset Management.”“Securities Brokerage” provides customers with broader investment and financing services fromboth funding and investment aspects and “Asset Management” mainly provides with services of
establishment and management of investment trusts targeting various assets as investments.
2. The calculation method of net operating revenue, profit or loss, assets and other items byreportable segment
Accounting policy for business segment reported is consistent with “Key issues forming the basisof preparation of consolidated financial statements.” Reportable segment profit or loss is theamount based on the profit or loss after applicable taxes. Inter-segment net operating revenue andtransfers are based on actual market prices.

16

3. Information about net operating revenue, profit or loss, assets and other items by reportablesegment(Millions of yen)Amounts on
interim
Adjustment consolidated(Note 2)
financialstatements(Note 3)

Reportable segment
Securities
Brokerage（Japan）
Net operating revenue
Net operating revenue
56,783from externalcustomers
Inter-segment net
4,659
operating revenue ortransfers
Total
61,443
Segment profit (loss)(144,940)
Segment assets
11,669,461
Other items:
Depreciation and
18,902amortization
Amortization of426
goodwillInterest income
7Interest expenses–
Equity in earnings–(losses) of affiliates
Extraordinary income
678
Gain on negative–
goodwill
Gain on change in–equityExtraordinary loss
12,302
Impairment loss
3,265
Early extra
5,640
retirement payments
Loss on adjustment
for changes of
2,417
accounting standard
for asset retirement
obligations
Taxes
6,606
Investment in–affiliates under equity
methodIncrease in property,
15,522plant and equipment
and intangible assets

Securities
Brokerage（U.K.）

Securities
Asset
Brokerage
Management（U.S.A.）

Other(Note 1)

Total

Total

21,9598,625

53,203

140,570(703)

139,866–

139,866

3,618

2,734

–

11,013

21,28432,298(32,298)–

25,5781,680
7,406,548

11,359409
1,702,969

53,203
10,356
111,829

1,989

302

642

21,838375

22,213(560)

21,652

–

–

–

426

162

589

–

589

4,116
–

–
–

854
–

4,978
–

179
668

5,158
668

(126)
(5)

5,032
663

–

–

–

–

–

–

12,712

12,712

46

–

0

725

10,18010,906

18,701

29,608

–

–

–

–

–

–

943

943

151,584
20,580172,164(132,494) (10,812) (143,307)
20,890,808 1,796,863 22,687,672(32,298)
139,866
92,867(50,440)(2,201,421) 20,486,251

–

–

–

–

–

–

27,913

27,913

254
–

–
–

14
–

12,572
3,265

910
260

13,482
3,525

(283)
0

13,199
3,525

–

–

–

5,640

－

5,640

–

5,640

–

–

–

2,417

56

2,473

–

2,473

1,564

239

7,149

15,561

18,72534,286(13,156)

21,130––––482,941

482,941(158,912)

324,029

3,092

189

700

19,504

180

19,685(713)

18,972(Notes) 1. “Other” includes the holding company of securities companies, principal investment operations andothers.
2. Adjustment includes the following:(1) Adjustment to segment profit or loss, amounting to 92,867 million yen, includes (12,287) million yenof eliminations of inter-segment transactions, 27,913 million yen of gain on change in equity inconnection with the contribution of Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. shares and75,767 million yen of equity in earnings or losses of affiliates, taxes and minority interests in income
all of which were not allocated to each segment.
(2) Adjustment to segment assets, amounting to (2,201,421) million yen, includes (2,162,712) million
yen of eliminations of receivables and payables between segments, (27,397) million yen of reversalof partnership accounts that were accounted for as subsidiaries on non-consolidated financial
statements, 13,188 million yen of equity in earnings or losses of affiliates, (12,074) million yen of
adjustments of unrealized gains or losses and (12,626) million yen of netting of assets and liabilities.
(3) Adjustment to taxes, amounting to (13,156) million yen, includes (13,205) million yen of eliminationof investment costs in the course of capital consolidation.
3. Segment profit or loss is adjusted to agree with net loss for the fiscal year ended March 31, 2011.

17

(Per share information)
FY2010(From April 1, 2010
to March 31, 2011)778.14 yen

Net assets per share(70.35) yen
Basic net income (loss) per share
Diluted net income per share is not presented because, in spite of the existence of potential shares, net loss wasrecorded for the fiscal year.
(Note) The basis of calculation for basic net loss per share is as follows.
(Millions of yen)
FY2010(From April 1, 2010
to March 31, 2011)

Net income (loss)
Net income not attributable to common
stockholder
Net income (loss) attributable to common
stock
Average number of common shares(Thousands of shares)
Summary of potential shares that are notincluded in calculation of diluted net
income per share due to a lack of dilution
effect(50,440)–(50,440)
716,985
Subscription rights to shares issued by consolidated subsidiaries
MU Hands-on Capital Ltd.
Number of units—* The exercise period expired on December 1, 2010.
Fukuin Co., Ltd.
Number of types
Number of units

212,370

Subscription rights to shares issued by affiliated company
Kim Eng Holdings Limited
Number of units—* The exercise period expired on February 22, 201018

<Reference>

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2011

1. Commission received(1) Breakdown by item
(Millions of yen)

Commission to consignees

FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Increase(Decrease)

25,22722,226(3,001)

Stocks24,843

21,699(3,144)

Bonds

253

281

27

39,37320,048(19,325)

24,358

6,878(17,480)

15,014

13,169(1,844)

26,66331,415

4,752

26,46831,306

4,837

94,40487,804(6,600)75,902

66,679(9,223)

185,669

161,494(24,174)

FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Stocks49,93531,725(18,209)

Bonds

16,415

15,180(1,234)

Beneficiary certificates

102,501

98,230(4,270)Other

16,816

16,356

(459)

Total

185,669

161,494(24,174)

FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Securities

10,653(6,953)(17,606)

Bonds

102,340(46,027)(148,367)

Other(12,575)

25,78438,360Total

100,418(27,195)(127,613)

Commission forunderwriting, secondary
distribution and solicitation
for selling and others for
professional investors
Stocks
Bonds
Fee for offering, secondary
distribution and solicitation
for selling and others for
professional investors
Beneficiary certificates
Other fees received
Beneficiary certificates
Total(2) Breakdown by product(Millions of yen)
Increase(Decrease)

2. Net trading income(Millions of yen)

19

Increase(Decrease)<Reference>

Quarterly Trends in Consolidated Statements of Income

Operating revenue
Commission received
Commission to consignees
Stocks
Bonds
Commission for underwriting,secondary distribution andsolicitation for selling and others for
professional investors
Stocks
Bonds
Fee for offering, secondary
distribution and solicitation for
selling and others for professional
investors
Beneficiary certificates
Other fees received
Beneficiary certificates
Net trading income
Net trading income from securities
Net trading income from bonds
Other net trading income
Net gain on private equity and othersecurities
Other net gain on goods trading
Financial revenue
Financial expenses
Net operating revenue
Selling, general and administrative
expenses
Trading related expenses
Personal expenses
Real estate expenses
Office cost
Depreciation
Taxes and dues
Other
Operating income (loss)
Non-operating income
Non-operating expenses
Ordinary income (loss)
Extraordinary income
Extraordinary loss
Income (loss) before income taxes andminority interests
Income taxes-current
Income taxes-deferred
Income taxes
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss)(Millions of yen)
3Q of FY2010 4Q of FY2010

4Q of FY2009

1Q of FY2010(January 1 toMarch 31, 2010)(April 1 toJune 30, 2010)

77,83846,474
5,608
5,562
11

83,84037,787
5,409
5,288
50

74,661
42,628
5,337
5,222
57

80,976
41,576
4,933
4,777
107

(37,216)
39,500
6,545
6,409
65

8,369

2,990

6,605

5,553

4,898

6,016
2,353

1,110
1,880

1,984
4,621

1,760
3,793

2,022
2,875

6,951

8,004

8,159

7,912

7,339

6,932
25,544
18,204
26,513
3,336
26,182(3,006)

7,971
21,382
17,837
29,687(2,799)43,056(10,569)

8,133
22,526
17,21914,791
2,166
36,047(23,422)

7,887
23,177
16,39521,789(1,645)
1,847
21,587

7,314
20,717
15,226(93,463)(4,675)(126,978)38,189(2,068)

823

7

52

(697)

(0)
6,920
9,782
68,055(8)
15,55017,43866,402

11
17,221
13,77260,888(0)
17,55718,04062,936

1
17,442
13,143(50,360)

71,69865,76068,474

63,95856,70019,80330,825
6,627
6,098
5,763
680
1,899
(3,642)
4,715
279
794
474
1,137

19,14926,858
6,239
5,653
5,361
813
1,685
641
6,084
250
6,475
24,618
2,772

20,18527,187
6,744
6,801
5,651
614
1,290
(7,585)(11)
1,151(8,748)
3,897
1,901

18,02625,964
6,464
5,689
5,327
829
1,655
(1,022)
3,093
527
1,544
538
624

16,686
19,582
6,634
6,166
5,312
480
1,838
(107,061)
12,9481,017(95,130)
554
7,900

130

28,321(6,752)

1,457(102,476)

2,803(7,901)(5,098)
5,229
1,619
3,609

1,652
2,699
4,352
23,9681,169
22,7992,420(2,493)(72)(6,680)(3,311)(3,368)

1,542
3,595
5,137
(3,680)(2,645)(1,034)

2,129
9,583
11,712(114,189)(45,353)(68,835)

20

2Q of FY2010(July 1 to
(October 1 to
September 30, 2010) December 31, 2010)(January 1 toMarch 31, 2011)

<Reference>Non-consolidated Financial Results of
Mitsubishi UFJ Morgan Stanley Securities, Co., Ltd.
for the Fiscal Year Ended March 31, 2011

(1) Non-consolidated operating results(Millions of yen)
FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

218,163

75,752(142,411)

109,342

97,394(11,948)

Net trading income

78,918(48,643)(127,562)

Net operating revenue

202,965

61,443(141,522)

Operating revenue
Commission received

Increase(Decrease)

Operating income (loss)

9,327(128,567)(137,894)

Ordinary income (loss)

11,094(126,709)(137,804)

Net income (loss)

11,008(144,940)(155,949)(Breakdown of operating revenue)<Breakdown by item of commission received>(Millions of yen)
FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

25,441

21,253(4,187)25,042

8,901(16,141)

26,66331,415

4,752

Other fees received

32,19535,823

3,628

Total

109,342

97,394(11,948)

Commission to consignees
Commission forunderwriting, secondary
distribution and solicitation
for selling and others for
professional investors
Fee for offering, secondary
distribution and solicitation
for selling and others for
professional investors

Increase(Decrease)<Breakdown by product of commission received>(Millions of yen)
FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Stocks

46,98029,058(17,922)

Bonds

6,370

5,507

(863)

Beneficiary certificates

42,51548,502

5,987

Other

13,475

14,326851

Total

109,342

97,394(11,948)

21

Increase(Decrease)<Net trading income>(Millions of yen)
FY2009FY2010(From April 1, 2009
to March 31, 2010)(From April 1, 2010
to March 31, 2011)

Increase(Decrease)

Securities

11,267888(10,378)

Bonds

82,149(26,636)(108,786)

Other(14,497)(22,894)(8,397)

Total

78,918(48,643)(127,562)(2) Non-consolidated financial position(Millions of yen)
Increase(Decrease)

As of March 31, 2010

As of March 31, 2011

Total assets

12,752,634

11,669,461(1,083,172)

Net assets

626,646

168,791(457,855)

Note 1: The performance results stated for FY2009 and as of March 31, 2010 are the performance results of Mitsubishi UFJ
Securities Co., Ltd. (current Mitsubishi UFJ Securities Holdings Co., Ltd.)
Note 2: On April 1, 2010, the domestic business operations of the current Mitsubishi UFJ Securities Holdings Co., Ltd. weretransferred to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. by a way of a company split. Furthermore, on May 1,
2010, the investment banking division of Morgan Stanley Japan Securities Co., Ltd. was integrated.
Note 3: The net capital adequacy ratio as of March 31, 2011 is 219.4%.

22