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 27, 2012

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2012
[under Japanese GAAP]
Company name: Mitsubishi UFJ Securities Holdings Co., Ltd.
URL:
http://www.hd.sc.mufg.jp/
Representative: Toshiro Toyoizumi, President & CEO
Contact:
Mitsugu Enjouji, General Manager, Financial Planning Division
TEL: (03) 6213-2550
Scheduled date of General Shareholders’ Meeting:June 27, 2012
Scheduled date to file Securities Report:
June 27, 2012
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 2011
(from April 1, 2011 to March 31, 2012)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen
FY2011

306,926

FY2010202,262

Net operating revenue% Millions of yen

51.7

238,585(41.2)

139,866

Operating income% Millions of yen
70.6(1,539)(51.3)(115,027)

Ordinary income% Millions of yen%–

38,177––(95,859)–

Diluted net income
Net income
per share/equity
Yen
Yen%Millions of yen%
16,58322.86–
FY2011–
2.9(50,440)–
FY2010–(70.35)(8.4)(Note)
Comprehensive income
FY2011: 20,734 million yen (– %)FY2010:-123,652 million yen (– %)(Reference) Equity in earnings (losses) of affiliates FY2011: 30,268 million yen
FY2010: 12,712 million yen
Net income

Net income per share(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As of March 31, 2012

Millions of yen
22,436,260

Millions of yen
819,651%2.7

Yen
808.05

As of March 31, 2011

20,486,251

802,106

2.7

778.14(Reference) Equity
As of March 31, 2012: 595,522 million yen
As of March 31, 2011:(Note)“Equity ratio” is computed under the formula shown below:(Total net assets – Subscription rights to shares – Minority interests) / Total assets

557,913 million yen

(3) Consolidated cash flows
Cash flows fromfinancing activities(Millions of yen)
Cash and cash
equivalents at end of
periodCash flows fromoperating activities

Cash flows frominvesting activities

FY2011

296,032

60,833(543,014)

422,521

FY2010258,942

64,820162,018

612,678<* Notes>(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): Yes
Newly consolidated: –Excluded: 1 company (MUSHK Limited)(Note)For details, please refer to “3. Key items forming the basis of preparation of consolidated financial statements” onpage 12 of the “Attached Material.”(2) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Yes
c. Changes in accounting estimates: Yes
d. Restatement of prior period financial statements after error corrections: None
(Note)For details, please refer to “3. Key items forming the basis of preparation of consolidated financial statements” onpage 12 of the “Attached Material.”(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, 2012

736,985,496 shares

As of March 31, 2011

716,985,496 shares

Number of shares of treasury stock at the end of the period
As of March 31, 2012

– shares

As of March 31, 2011

– sharesAverage number of shares during the period
Fiscal year ended March 31, 2012

725,318,829 sharesFiscal year ended March 31, 2011

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 and Consolidated statements of comprehensive income
Consolidated statements of income·························

P. 4

Consolidated statements of comprehensive income·························

P. 6(3) Consolidated statements of changes in net assets·························

P. 7(4) 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(Segment information)·························

P. 15(Per share information)·························

P. 17(1) Breakdown by item·························

P. 18(2) Breakdown by product·························

P. 18

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

P. 18·························

P. 19

4.

Notes to consolidated financial statements<Reference>
Consolidated Financial Results for the Fiscal Year Ended March 31, 2012
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, 2012
(1) Non-consolidated operating results·························

P. 20(2) Non-consolidated financial position·························

P. 21

1.

Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2011ASSETS
Current assets
Cash and deposits
Cash segregated as deposits
Trading products
Trading securities and other
Derivatives
Trade date accrual
Private equity and other securities
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, 2012

618,340
79,89910,196,705
3,927,867
6,268,837
23,40065,90153,577
42,100452,899
98,242
12,183,845
4,743,416
7,440,428
232,720
31,791
39,56629,395

11,477

10,171

7,835,342

7,684,079

3,292,741

3,621,431

4,542,601
8,302
500,84492
236
182,384
1,282
10,22041,529(449)

4,062,647
8,716
645,600
101
254
241,410
9,147
11,57588,561(48)

19,617,609

21,728,465

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)29,20915,760
7,899
5,399
0
149
26,23325,773460
652,350
630,686
3,585
3,289
15,924(1,136)

868,641

707,794

20,486,251

22,436,260

(Millions of yen)
As of March 31, 2011

As of March 31, 2012

LIABILITIESCurrent liabilities
Trading products

8,908,654

10,762,769

Trading securities and other

2,847,019

3,290,150

Derivatives

6,061,635

7,472,619

11,22015,258Borrowings on margin transactions

7,948

7,798

Cash received for securities lending on
margin transactions

3,272

7,460

Margin transaction liabilities

Loans payable secured by securities

6,782,909

7,486,103

Cash received on debt credit transaction of
securities

1,925,479

3,093,995

Borrowings on Gensaki transactions

4,857,429

4,392,107

77,40589,715

Deposits received
Guarantee deposits received

771,416757,258

Short-term loans payable

1,369,308

617,497

Current portion of long-term loans payable

32,300111,056

Commercial papers

438,800

530,100

Current portion of bonds

131,106

158,678

Income taxes payable

4,716

3,164

Provision for bonuses

13,022

15,321895

1,107

Asset retirement obligations
Other current liabilities

68,61047,463

Total current liabilities

18,610,367

20,595,495

Bonds payable

638,231

689,490

Long-term loans payable

409,799

310,489

Noncurrent liabilities

Deferred tax liabilities

6,783

3,840

Liability for retirement benefits

10,718

11,575

487

541

4,209

3,927

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

2,176

257

Total noncurrent liabilities

1,072,405

1,020,123

Reserve for financial products transaction
liabilities

1,371

989

Total reserves under the special laws

1,371

989

19,684,144

21,616,609

Reserves under the special laws

Total liabilities

2

(Millions of yen)
As of March 31, 2011

As of March 31, 2012

NET ASSETS
Shareholders’ equity
Capital stock

65,51875,518

Capital surplus

416,948

426,948

Retained earnings

126,812145,830

Total shareholders’ equity

609,280

648,297(7,682)(4,166)6(898)

Foreign currency translation adjustment(43,690)(47,709)

Total accumulated other comprehensive income(51,366)(52,775)

4–Minority interests

244,188

224,128

Total net assets

802,106

819,651

20,486,251

22,436,260

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 and Consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
For the fiscal year ended
March 31, 2012

For the fiscal year ended
March 31, 2011
(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Operating revenue
Commission received

161,494

143,016

Net trading income
Net gain (loss) on private equity and othersecurities
Other net gain on goods trading(27,195)

86,031186(2,173)

4(486)

Financial revenue

67,77280,538

Total operating revenue

202,262

306,926

Financial expenses

62,39568,341

Net operating revenue

139,866

238,585

Trading related expenses

74,047

66,682

Personnel expenses

99,592

97,278

Real estate expenses

26,08225,334

Office cost

24,311

23,995

Depreciation

21,652

16,424

Taxes and dues

2,737

4,961

Other

6,470

5,448

254,894

240,124(115,027)(1,539)Selling, general and administrative expenses

Total selling, general and administrative
expenses
Operating loss
Non-operating income
Interest income

5,032

7,210

Equity in earnings of affiliates

12,71230,268

Other

4,369

4,994

Total non-operating income

22,11442,473

Interest expenses

663

467

Loss on retirement of noncurrent assets

655

370

1,122

876

–

348

504

693

Non-operating expenses

Foreign exchange losses
Stock issuance cost
Other
Total non-operating expenses
Ordinary income (loss)

4

2,946

2,756

(95,859)

38,177

(Millions of yen)
For the fiscal year ended
March 31, 2012

For the fiscal year ended
March 31, 2011
(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Extraordinary income
Gain on sales of investment securities
Gain on sales of subsidiaries and affiliates’
stocksGain on sales of noncurrent assets

175

5,408

–

12,31815

129

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

943

–

489

382

71

–

Gain on change in equity

27,913–

Total extraordinary income

29,60818,238

549

2,116

–

75

320

4,529

Extraordinary loss
Loss on sales of investment securities
Loss on sales of stocks of subsidiaries andaffiliates
Loss on valuation of investment securities
Loss on sales of noncurrent assets
Impairment loss

2

340

3,525

2,403

Integration-related expenses

193–

Head office transfer cost

492

1,881

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

5,640

20,512

2,473–

Total extraordinary losses

13,19931,859(79,450)

24,556

Income (loss) before income taxes and minority
interests
Income taxes-current

7,744

5,891

Income taxes-deferred

13,385(4,108)

Total income taxes

21,130

1,782

Income (loss) before minority interests(100,580)

22,773

Minority interests in income (loss)(50,140)

6,190

Net income (loss)(50,440)

16,583

5

Consolidated statements of comprehensive income(Millions of yen)
For the fiscal year ended
March 31, 2012

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

Income (loss) before minority interests(From April 1, 2011
to March 31, 2012)(100,580)

22,773(2,954)

3,362

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income

(17)

(905)

(19,372)(7,073)

(727)

2,576

(23,071)(2,039)(123,652)

20,734(72,721)

15,174(50,931)5,559(Comprehensive income attributable to)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests6(3) Consolidated statements of changes in net assets(Millions of yen)
For the fiscal year ended
March 31, 2012

For the fiscal year ended
March 31, 2011
(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Shareholders’ equity
Capital stock
Balance at the beginning of current period

65,51865,518–10,000Changes of items during the period
Issuance of new shares
Total changes of items during the period–

10,00065,51875,518416,948

416,948

Issuance of new shares–

10,000Total changes of items during the period–

10,000416,948

426,948

184,580

126,812Dividends from surplus(7,327)–

Net income (loss)(50,440)

16,583

Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period

Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period

–

2,434

(57,767)

19,017

126,812145,830

667,047

609,280–

20,000Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Dividends from surplus(7,327)–

Net income (loss)(50,440)

16,583–

2,434

Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period

7(57,767)

39,017609,280

648,297(Millions of yen)
For the fiscal year ended
March 31, 2012

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

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at the beginning of current 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, 2011
to March 31, 2012)(5,382)(7,682)(2,299)3,515(2,299)3,515(7,682)(4,166)

24

6

(17)

(905)

(17)

(905)

6

(898)

(23,726)(43,690)(19,963)(4,019)Deferred gains or losses on hedges
Balance at the beginning of current 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 beginning of current 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(19,963)(4,019)(43,690)(47,709)(29,085)(51,366)(22,281)(1,409)Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other thanshareholders’ equity
Total changes of items during the period(22,281)(1,409)(51,366)(52,775)

0

4

4

(4)

Total changes of items during the period

4(4)Balance at the end of current period

4–Balance at the end of current period
Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’equity8

(Millions of yen)
For the fiscal year ended
March 31, 2012

For the fiscal year ended
March 31, 2011
(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Minority interests
Balance at the beginning of current period

63,691

244,188

180,496(20,059)

Total changes of items during the period

180,496(20,059)

Balance at the end of current period

244,188

224,128

701,654

802,106

Issuance of new shares–

20,000

Dividends from surplus(7,327)–

Net income (loss)(50,440)

16,583–

2,434

158,219(21,473)

Total changes of items during the period

100,452

17,544

Balance at the end of current period

802,106

819,651

Changes of items during the period
Net changes of items other than shareholders’equityTotal net assets
Balance at the beginning of current period
Changes of items during the period

Change of scope of consolidation
Net changes of items other than shareholders’equity9(4) Consolidated statements of cash flows(Millions of yen)
For the fiscal year ended
March 31, 2012

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

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 sales of stocks of subsidiaries andaffiliates
Loss (gain) on valuation of investment securities
Loss (gain) on sales of noncurrent assets
Loss (gain) on change in equity
Impairment loss
Integration-related expenses
Head office transfer cost
Early extra retirement payments
Loss on adjustment for changes of accounting
standard for asset retirement obligations
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
Integration-related expenses paid
Head office transfer cost paid
Early extra retirement payments paid
Income taxes paid
Net cash provided by (used in) operating
activities

10(From April 1, 2011
to March 31, 2012)(79,450)

24,556

21,652589(943)

16,424
188
–

92

859

71

53

(600)

(3,144)

(489)

(382)

(73,699)
63,058(12,712)374(88,756)
68,809(30,268)(3,291)–(12,243)(1,058)(12)(27,913)
3,525
193
492
5,640

4,015
211
–
2,403
–
1,881
20,512

2,473–

12,204(19,047)

2,335,451(201,581)

88,582(209,779)(7,360)18,048(2,446,029)

854,507(59,469)

12,208(99,671)(157,354)

353,270

9,734

162,313240,576
84,530(56,286)
(222)
(209)
–
(9,446)(501)
308,064
104,259(74,473)–(1,700)(25,411)(14,707)258,942

296,032(Millions of yen)
For the fiscal year ended
March 31, 2012

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

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
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Decrease (increase) in call and other loans
Proceeds from 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
Proceeds from issuance of common stock
Cash dividends paid
Payments of cash dividends to minority
shareholders
Repayments 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
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period

11(From April 1, 2011
to March 31, 2012)(6,985)
11,699(542,273)
464,020(66,939)(3,369)4,486(490,586)
517,476(149,132)

223,759

193,937(6,467)(9,183)

23

60

(247)

(911)

(11,847)–78(11,509)
9,025
(258)

–

794

0

2

64,82060,8332,042(711,570)

64,100207,552(145,162)
206,965(165,042)–(7,327)91,30083,000(81,811)
266,592(186,289)
20,000–(1,284)(20,544)–(14,082)

175

10,390162,018(543,014)(5,299)(3,875)

480,482
132,196(190,024)
612,678–(133)

612,678

422,521

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: 26 companies (previous year: 31 companies)
Names of principal consolidated subsidiaries
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
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.
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)
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 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(Note)

Mitsubishi UFJ Securities (HK), Limited has changed its trade name of company from
Mitsubishi UFJ Securities (HK) Capital, Limited as of December 31, 2010.

(Exclusion)
Big Wing Investment Co., Ltd.
The above company was previously consolidated together with a silent partnership forwhich it was the operator. However, it was excluded from the scope of consolidation
following the dissolution of the silent partnership in which a consolidated subsidiary of
the Company had an investment.
NCS Holdings Co., Ltd.
The above company was excluded from the scope of consolidation since the Company
sold its shares.
MUSHK Limited
THC Millennium Venture Capital Investment Limited Partnership
The above 2 companies were excluded from the scope of consolidation due to completionof liquidation.
Fukuin Co., Ltd.
The above company was excluded from the scope of consolidation since it merged withPATLITE Corporation, its operating investee, through absorption-type merger. The
company was not treated as a subsidiary because its shares and other instruments were
held as business transactions for such purposes of incubation business and business
revitalization of consolidated subsidiaries engaged in the venture capital business, andacquiring capital gains thereby, and such was not intended to place the company undercontrol.
12As of February 1, 2012, the company has changed its trade name of company to
PATLITE Corporation.
(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
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 (former Fukuin Co., Ltd.)
Dream Infinity Inc.
(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) Four affiliates are under the equity method (previous year: 17 companies)
Names of affiliates under equity method
Morgan Stanley MUFG Securities Co., Ltd.
Marunouchi Capital Co., Ltd.
KE Capital Partners Pte. Ltd.
Sino Roosevelt Investment Partners Limited(Exclusion)
Kim Eng Holdings Limited and other 12 companies
The above 13 companies were excluded from the scope of affiliates under equity method
since the Company sold its shares of Kim Eng Holdings Limited.
(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
REVO TRADING Co., Ltd.
(Reason for not treating as affiliates)
The company was not treated as an affiliate because its shares and other instruments were
held as business transactions by the Company’s consolidated subsidiaries engaged in theventure capital business for such purposes of incubation business, business revitalization
and acquiring capital gains thereby and were not intended to place the company undercontrol.

13

3. Financial closing dates and other details of consolidated subsidiaries
The financial closing dates of consolidated subsidiaries are as follows.
End of December 19 subsidiaries
End of February
1 subsidiary
End of March
6 subsidiaries
Of the consolidated subsidiaries whose financial closing date differs from the consolidated
financial closing date, 20 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.
4. Accounting policies(1) Change in method of depreciation and amortization of major depreciable and amortizable
assets1) Method of depreciation of property, plant and equipment (excluding leased assets)
The Company applies the declining balance method.
Domestic consolidated subsidiaries and overseas consolidated subsidiaries mainly apply
the straight-line method.
The useful lives of major items are as follows.
Buildings
8 to 50 years
Equipment
3 to 15 years(Change in accounting policy)
Mitsubishi UFJ Morgan Stanley Securities, Co., Ltd., a subsidiary of the Company,
previously applied the declining balance method for its method of depreciation ofproperty, plant and equipment (the straight-line method was applied for buildings
acquired on or after April 1, 1998 (with the exception of items listed as buildings andaccompanying facilities)). However, effective from the fiscal year ended March 31,
2012, the subsidiary has changed to the straight-line method of depreciation accounted
for prospectively.
This change was implemented for the following reason. The subsidiary has undertaken
capital investment to reorganize its branch network and transfer the head office
functions. As a result of reviewing the actual circumstances of use of property, plantand equipment after the capital investment had run its course, estimates were made as
to the average actual use for each period. As a result it was deemed that a morerational cost allocation could be achieved by implementing this change in accounting.
As a result of this change, compared with the previous method, depreciation andamortization and operating loss for the fiscal year ended March 31, 2012 eachdeclined by 1,896 million yen; ordinary income and income before income taxes andminority interests increased by 1,873 million yen and 1,841 million yen, respectively.
2) Method of amortization of intangible assets
The Company applies the straight-line method. For software used internally, the straightline method is applied based on the period of potential use by the Company (mainly 5
years).
3) Method of depreciation of leased assets
The Company applies the straight-line method over the lease period as the useful life andthe residual value is assumed to be zero.
Please note that finance lease transactions not involving the transfer of ownership whosetransaction commenced on or before March 31, 2008 follow the same method as ordinary
leases.
Disclosure of the items other than above was omitted because there were no significant
changes from the latest Securities Report (submitted on June 28, 2011).

14

4.

Notes to consolidated financial statements(Segment information)
For the fiscal year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)
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 items 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.
(Change in method of depreciation of property, plant and equipment)
Mitsubishi UFJ Morgan Stanley Securities, Co., Ltd., a subsidiary of the Company, previously
applied the declining balance method for its method of depreciation of property, plant andequipment (the straight-line method was applied for buildings acquired on or after April 1,
1998 (with the exception of items listed as buildings and accompanying facilities)). However,effective from the fiscal year ended March 31, 2012, the subsidiary has changed to the straightline method of depreciation accounted for prospectively.
This change was implemented for the following reason. The subsidiary has undertaken capital
investment to reorganize its branch network and transfer the head office functions. As a resultof reviewing the actual circumstances of use of property, plant and equipment after the capital
investment had run its course, estimates were made as to the average actual use for each period.
As a result it was deemed that a more rational cost allocation could be achieved by
implementing this change in accounting.
As a result of this change, compared with the previous method, in “Securities Brokerage(Japan),” segment assets increased by 1,826 million yen, segment loss decreased by 1,826
million yen, and depreciation and amortization decreased by 1,896 million yen for the fiscal
year ended March 31, 2012, respectively.

15

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

Reportable segment
Securities
Brokerage(Japan)Net operating revenue
Net operating revenue
167,785from externalcustomers
Inter-segment net
2,344
operating revenue ortransfers
Total
170,130
Segment profit (loss)(16,794)
Segment assets
12,805,850
Other items:
Depreciation and
14,596amortization
Amortization of–
goodwillInterest income
8Interest expenses–
Equity in earnings–(losses) of affiliates
Extraordinary income
5,227
Gain on sales of
4,461
investment
securities
Gain on sales of–subsidiaries andaffiliates’ stocks
Extraordinary loss
27,204
Loss on valuation of500
investment
securities
Impairment loss
2,532
Early extra
20,317
retirement payments
Taxes(2,405)Investment in–affiliates under equity
methodIncrease in property,
18,800plant and equipment
and intangible assets

Securities
Brokerage(U.K.)

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

Other(Note 1)

Total

Total

21,926

10,44843,000243,160(4,575)

238,585–

238,585

3,026

894

–

6,265

17,70023,965(23,965)–

24,952781
7,684,161

11,342(560)
2,296,850

43,0007,424
87,466249,426(9,148)22,874,328

1,070

333

726

16,726300

17,027(603)

16,424

–

–

–

–

122

122

65

188

6,624
–

–
–

535
–

7,168
–

168
504

7,337
504

(126)
(36)

7,210
467

–

–

–

–

–

–

30,26830,268

941

0

11

6,180

24,86031,040(12,802)

18,238

934

–

11

5,408

2,713

8,121

(2,713)

5,408

–

–

–

–

22,032

22,032(9,713)

12,318

105

–

110

27,4204,904

32,324(465)

31,859

–

–

8

509

4,020

4,529

–

4,529

–

–

–

2,532

68

2,601

(198)

2,403

–

–

–

20,317

195

20,512–

20,512

877

(455)

5,284

3,301

(1,586)

1,714

67

1,782

–

–

–

–

413,132

413,132(132,378)

280,754

1,994

254

589

21,6398,358

29,997(8,576)21,421

13,124
262,551(23,965)
238,585
67,92858,779(42,196)
16,583
1,891,435 24,765,764 (2,329,503) 22,436,260(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 (42,196) million yen, includes (54,041) million
yen of eliminations of inter-segment transactions, (7,541) million yen of amendment to gain on salesof shares of affiliates under equity method, (5,737) million yen of reversal of partnership accounts
that were accounted for as subsidiaries on non-consolidated financial statements and 23,796 million
yen of equity in earnings or losses of affiliates, taxes and minority interests in income or loss all ofwhich were not allocated to each segment.
(2) Adjustment to segment assets, amounting to (2,329,503) million yen, includes (2,294,449) million
yen of eliminations of receivables and payables between segments, (31,388) million yen of reversalof partnership accounts that were accounted for as subsidiaries on non-consolidated financial
statements, 19,747 million yen of equity in earnings or losses of affiliates, (11,947) million yen of
adjustments of unrealized gains or losses, and (13,621) million yen of netting of assets and liabilities.
3. Segment profit or loss is adjusted to agree with net income for the fiscal year ended March 31, 2012.

16

(Per share information)(Millions of yen)
FY2011(From April 1, 2011
to March 31, 2012)

Basic net income per share (Yen)

22.86(Basis of calculation)
Net income
Net income not attributable to common
stockholder

16,583

Net income 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
effect16,583–725,318
Subscription rights to shares issued by consolidated subsidiaries
Fukuin Co., Ltd.
Type and number of subscription rights to shares are notpresented since Fukuin Co., Ltd. was excluded from thescope of consolidation as of February 1, 2012. On the samedate, Fukuin Co., Ltd. changed its trade name of company to
PATLITE Corporation.

(Note) Diluted net income per share for the fiscal year ended March 31, 2012 is not presented since there wereno potential shares with dilution effects.
(Millions of yen)
As of March 31, 2012
808.05

Net assets per share (Yen)(Basis of calculation)
Total net assets

819,651

Amount to be deducted from total net assets

224,128

Minority interests
Net assets at end of year attributable tocommon stock
Number of common shares outstanding at
end of year used to calculate net assets per
share (Thousands of shares)

224,128595,522736,98517

<Reference>

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2012

1. Commission received(1) Breakdown by item
(Millions of yen)
FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)

22,226

19,301(2,924)

Stocks21,69918,907(2,792)

Bonds

281

175

(106)

20,04815,907(4,140)

6,878

2,127

(4,750)13,16913,780610

31,41533,3371,921

31,30633,0571,750

87,80474,469(13,334)

Commission to consignees

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

66,67954,352(12,326)

161,494

143,016(18,477)

FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)(2) Breakdown by product(Millions of yen)

Stocks

31,72522,670(9,055)

Bonds

15,18014,984(196)

Beneficiary certificates

98,23087,607(10,623)

Other

16,356

17,754

1,397

Total

161,494

143,016(18,477)

FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

2. Net trading income(Millions of yen)
Increase(Decrease)

Securities(6,953)(6,221)

731

Bonds

(46,027)

121,170

167,197

Other

25,784(28,916)(54,701)

Total(27,195)

86,031

113,227

18

<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 FY2011 4Q of FY2011

4Q of FY2010

1Q of FY2011(January 1 toMarch 31, 2011)(April 1 toJune 30, 2011)(37,216)
39,500
6,545
6,409
65

79,59036,564
4,897
4,810
42

73,20936,524
4,330
4,201
55

67,83832,343
4,215
4,129
34

86,28737,583
5,858
5,765
42

4,898

3,180

3,460

4,293

4,973

2,022
2,875

373
2,807

783
2,677

366
3,926

604
4,369

7,339

9,367

8,584

5,803

9,582

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

9,313
19,11915,284
22,599(1,610)40,651(16,441)

8,534
20,14914,285
13,911(7,438)33,695(12,344)

5,701
18,031
12,693
22,201
7,425
14,75322

9,507
17,16812,08927,319(4,597)32,069
(152)

(697)

290

(1,713)

191

(942)

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

12
20,122
19,37760,213(6)
24,493
19,34353,8662
13,09913,93953,899(495)
22,822
15,68070,60756,70063,50758,45955,586

62,571

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

17,382
24,258
6,721
5,392
5,283
2,428
2,039
(3,294)
18,388688
14,406
12,803
6,172

15,58324,181
6,657
6,611
3,458
871
1,095
(4,593)
9,219
1,289
3,336
4,050
3,875

16,924
21,389
6,015
5,749
3,793
989
724
(1,687)
3,946
817
1,442
8
20,926

16,79227,448
5,939
6,241
3,889
672
1,588
8,035
10,917(38)
18,992
1,375
884(102,476)

21,036

3,511(19,475)

19,483

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

2,083(1,032)
1,050
19,986
3,128
16,858

1,712(1,190)
521
2,989
3,494
(504)

716
(297)
418
(19,894)(7,623)(12,270)

1,379(1,587)(207)
19,691
7,190
12,50119

2Q of FY2011(July 1 to
(October 1 to
September 30, 2011) December 31, 2011)(January 1 toMarch 31, 2012)

<Reference>Non-consolidated Financial Results of
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
for the Fiscal Year Ended March 31, 2012

(1) Non-consolidated operating results(Millions of yen)

Operating revenue

FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)
105,40575,752

181,157

Commission received

97,39490,022(7,371)

Net trading income(48,643)

69,664

118,307

Net operating revenue

61,443

170,130

108,687

Operating income (loss)(128,567)

498

129,065

Ordinary income (loss)(126,709)

2,776

129,486

Net income (loss)(144,940)(16,794)

128,145(Breakdown of operating revenue)<Breakdown by item of commission received>(Millions of yen)
FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)

21,25316,083(5,170)

8,901

6,482

(2,419)31,41533,337

1,921

Other fees received

35,823

34,119(1,704)

Total

97,39490,022(7,371)FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)

29,058

19,631(9,426)

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<Breakdown by product of commission received>(Millions of yen)

Stocks
Bonds

5,507

6,016

509

Beneficiary certificates

48,502

48,58583

Other

14,326

15,788

1,462

Total

97,39490,022(7,371)20

<Net trading income>(Millions of yen)
FY2010FY2011(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Increase(Decrease)

5,529

4,641

Securities

888

Bonds

(26,636)

92,284

118,921

Other(22,894)(28,149)(5,255)

Total(48,643)

69,664

118,307(2) Non-consolidated financial position(Millions of yen)
Increase(Decrease)

As of March 31, 2011

As of March 31, 2012

Total assets

11,669,461

12,805,850

1,136,388

Net assets

168,791

226,439

57,648Note 1: The net capital adequacy ratio as of March 31, 2012 is 328.6%.

21