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.

October 27, 2010

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending 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
Supplementary material on quarterly financial results:
None
Quarterly financial results presentation meeting: None
(Millions of yen with fractional amounts disregarded)

1.

Consolidated performance for the second quarter of fiscal year 2010
(from April 1, 2010 to September 30, 2010)(1) Consolidated operating results (cumulative)
Operating revenue
Millions of yen
First six months of
FY2010First six months of
FY2009% Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen%

158,502(17.6)

127,291(18.0)(6,944)–(2,273)–

192,322(33.3)

155,297

7.8

25,880405.5

31,960–%

Yen

Diluted net income
per shareYen

19,430 (13.4)

27.10

27.10

22,448

31.31

31.31

Net income
Millions of yen
First six months of
FY2010First six months of
FY2009(Percentages indicate year-on-year changes.)

Net operating revenue

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

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of September 30,
2010

24,730,764

935,7022.6

882.43As of March 31, 2010

20,134,713

701,6543.2

889.78Reference: Equity
As of September 30, 2010: 632,691 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

2.

Matters on preparing the quarterly consolidated financial statements and others(For details, please refer to “Matters on preparing the quarterly consolidated financial statements andothers” on page 1 of the “Attached Material.”)(1) Changes in significant subsidiaries during the current quarter: None
Note:

Changes in specified subsidiaries resulting in the change in scope of consolidation during the current quarter(2) Application of simplified accounting and particular accounting: None
Note:

Application of simplified accounting and particular accounting for preparing the quarterly consolidated financial
statements(3) 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
(4) 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 September 30, 2010

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 September 30, 2010

– shares

As of March 31, 2010

– sharesAverage number of shares during the period (cumulative from the beginning of the fiscal year)
First six months of the fiscal year ending March 31, 2011:

716,985,496 sharesFirst six months of the fiscal year ended March 31, 2010:

716,985,496 shares<* Indication regarding execution of quarterly review procedures>This quarterly financial results report is not subject to the quarterly review procedures in accordancewith the Financial Instruments and Exchange Act.

<* Other special matters>
NoneAttached Material

Index
1.

2.

Matters on preparing the quarterly consolidated financial statements and others(1) Summary of changes in significant subsidiaries during the current quarter ························

P. 1(2) Summary of simplified accounting and particular accounting·························

P. 1(3) Summary of changes in accounting policies, procedures, and methods ofpresentation·························

P. 1

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

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

P. 4(3) Notes on premise of going concern·························

P. 6(4) Notes on significant changes in the amount of shareholders’ equity·························

P. 6<Reference>
Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2011
1.

2.

Commission received·························

P. 7(1) Breakdown by item·························

P. 7(2) Breakdown by product·························

P. 7

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

P. 7·························

P. 8

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

P. 9(2) Non-consolidated financial position·························

P. 10

1.

Matters on preparing the quarterly consolidated financial statements and others(1) Summary of changes in significant subsidiaries during the current quarter
None(2) Summary of simplified accounting and particular accounting
None(3) Summary of changes in accounting policies, procedures, and methods of presentationa. Effective from the first quarter of this fiscal year, the Company adopted “Accounting Standard
for Business Combinations” (ASBJ Statement No. 21, December 26, 2008), “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, December 26,2008), “Partial amendments to Accounting Standard for Research and Development Costs”(ASBJ Statement No. 23, December 26, 2008), “Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, December 26, 2008), “Accounting Standard for Equity
Method of Accounting for Investments” (ASBJ Statement No. 16, Released on December 26,2008) and “Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures” (ASBJ Guidance No. 10, December 26, 2008).
b.

Effective from the first quarter of this fiscal year, the Company adopted “Accounting Standard
for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidanceon Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31,2008).
As a result, Operating loss and Ordinary loss increased respectively by 337 million yen andIncome before income taxes and minority interests decreased by 2,811 million yen. The change
in Asset retirement obligations due to the adoption of this accounting standard, etc. was 3,892
million yen.

1

2.

Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of September 30, 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
Margin transaction assets
Loans secured by securities
Short-term guarantee deposits
Short-term investment securities
Income taxes receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total noncurrent assets
Total assets

2

As of March 31, 2010

159,222
92,478
14,593,215
7,447,636
7,145,578–
65,501
63,476
8,072,801
496,248272,711
1,473
87,524(883)

168,469
91,588
11,395,146
6,538,721
4,856,424
109,281
67,65059,0206,765,283
435,248
327,962
1,482
130,229(967)

23,903,770

19,550,395

24,12541,388761,479

23,44145,508515,368

826,993584,318

24,730,764

20,134,713

(Millions of yen)
As of March 31, 2010

As of September 30, 2010
LIABILITIESCurrent liabilities
Trading products

9,826,259

7,540,898

Trading securities and other

2,955,627

2,932,436

Derivatives

6,870,631

4,608,461

Trade date accrual

447,844–

Margin transaction liabilities

11,42623,908Loans payable secured by securities

9,446,614

8,307,900

Short-term loans payable

1,702,150

1,367,784

Current portion of long-term loans payable

48,821

108,058

Commercial papers

460,400

374,700

Current portion of bonds

130,493

85,130

Income taxes payable

5,106

5,901

443

–

Other current liabilities

692,244651,219

Total current liabilities

22,771,805

18,465,501

Bonds payable

643,909681,530

Long-term loans payable

357,485

266,947

Provision for retirement benefits

11,772

10,773

396

415

3,747

–

Asset retirement obligations

Noncurrent liabilities

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

4,573

6,029

Total noncurrent liabilities

1,021,885

965,696

Reserve for financial products transaction
liabilities

1,371

1,861

Total reserves under the special laws

1,371

1,861

23,795,062

19,433,059

Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

196,682

184,580

Total shareholders’ equity

679,150

667,047(9,717)(5,382)124

Foreign currency translation adjustment(36,743)(23,726)

Total valuation and translation adjustments(46,458)(29,085)

Reserves under the special laws

Total liabilities
NET ASSETS
Shareholders’ equity

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Subscription rights to shares

40Minority interests

303,005

63,691

Total net assets

935,702

701,654

24,730,764

20,134,713

Total liabilities and net assets3(2) Consolidated statements of of income (cumulative)(Millions of yen)First six months of FY2010(From April 1, 2010
to September 30, 2010)

First six months of FY2009(From April 1, 2009
to September 30, 2009)
Operating revenue
Commission received

91,08280,416

Net trading income

66,55444,479Net gain on private equity and other securities

(833)

831

Other net gain on goods trading

(10)

3

Financial revenue

35,52832,771

Total operating revenue

192,322

158,502

Financial expenses

37,024

31,211

Net operating revenue

155,297

127,291

Selling, general and administrative expenses

129,417

134,235

Operating income (loss)

25,880(6,944)

4,480

1,751

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

–

1,009

2,865

1,212

734

2,099

8,081

6,072

Non-operating expenses
Interest expenses–

336

Equity in losses of affiliates

264–

Foreign exchange losses

725

417

Loss on retirement of noncurrent assets
Other
Total non-operating expenses
Ordinary income (loss)

–

485

1,011

161

2,001

1,401

31,960(2,273)Extraordinary income
Gain on sales of investment securities

988

56

Gain on sales of noncurrent assets

0–

Reversal of reserve for financial products
transaction liabilities

3489

Reversal of allowance for doubtful accounts–

56

Gain on change in equity–

27,913

Total extraordinary income

991

28,515

4

(Millions of yen)First six months of FY2010(From April 1, 2010
to September 30, 2010)

First six months of FY2009(From April 1, 2009
to September 30, 2009)
Extraordinary loss
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on sales of noncurrent assets

8

279

412

130

–

2

138

1,594

Compensation for damage, etc.

726–

Loss related to M&A

469–

Integration-related expenses

176

193

–

2,473

Impairment loss

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Total extraordinary loss

1,932

4,673

31,01921,568

Income taxes-current

7,424

4,073

Income taxes-deferred(2,584)

206

Income taxes

4,839

4,279

Income before income taxes and minority interests–

17,288

Minority interests in income (loss)

Income before minority interests

3,731(2,141)

Net income

22,44819,4305

(3) Notes on premise of going concern
None(4) Notes on significant changes in the amount of shareholders’ equity
None

6<Reference>

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2011

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

Commission to consigneesFirst six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

14,44010,747(3,693)25,227

Stocks

14,216

10,511(3,704)

24,843

Bonds

164

107

(56)

253

17,026

9,596(7,430)39,373

6,772

3,095

(3,677)

24,358

10,2546,501(3,752)15,014

13,293

16,1642,870

26,663

13,15916,104

2,945

26,46846,322

43,909(2,413)

94,40438,40535,056(3,348)75,902

91,08280,416(10,666)

185,669First six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

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)

Stocks21,100Bonds
Beneficiary certificates

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

14,751(6,349)49,935

10,9507,174(3,776)

16,41551,62351,288(334)

102,501

Other

7,408

7,202

(206)

16,816

Total

91,08280,416(10,666)

185,669First six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

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

FY2009(From April 1, 2009
to March 31, 2010)

Securities

7,700

(632)

(8,333)

10,653

Bonds

58,378

79,104

20,726102,340

Other

476

(33,992)(34,468)(12,575)

Total

66,55444,479(22,075)

100,418

7

<Reference>

Quarterly Trends in Consolidated Statements of Income

3Q of FY2009

4Q of FY2009

1Q of FY2010(Millions of yen)
2Q of FY2010(July 1 to
(October 1 to
September 30, 2009) December 31, 2009)(January 1 toMarch 31, 2010)(April 1 toJune 30, 2010)(July 1 to
September 30, 2010)

2Q of FY2009

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)

89,51250,193
6,712
6,568
119

73,663
48,112
5,178
5,064
77

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

12,957

13,977

8,369

2,990

6,605

6,459
6,498

11,570
2,407

6,016
2,353

1,110
1,880

1,984
4,621

7,236

6,418

6,951

8,004

8,159

7,181
23,286
19,45322,485
13,86943,292(34,676)

6,376
22,537
19,2937,350(383)
17,779(10,045)

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)(1,026)252(2,068)

823

7

(13)
17,873
14,04075,472

1
17,947
9,864
63,799

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

11
17,221
13,77260,88867,15061,98871,69865,76068,474

19,622
26,666
6,904
6,037
5,536
527
1,855
8,321
4,930
1,029
12,221
985
832

17,617
26,114
6,052
4,967
5,391
457
1,386
1,810
6,362
(93)
8,267
49
370

19,80330,825
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

12,3757,946

130

28,321(6,752)4,000(2,439)1,561
10,813
1,628
9,184

2,610
602
3,213
4,733
2,042
2,690

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)8

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

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

Operating revenue

First six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

112,363

96,803(15,559)

218,163

49,63345,513(4,119)109,342

Commission received
Net trading income

47,62938,654(8,974)78,918Net operating revenue

104,327

89,811(14,515)

202,965

Operating income (loss)

7,346(7,740)(15,086)

9,327

Ordinary income (loss)

8,580(6,271)(14,852)

11,094

Net income (loss)

9,672(9,140)(18,812)

11,008(Breakdown of operating revenue)<Breakdown by item of commission received>(Millions of yen)

Commission to consigneesFirst six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

14,038

9,682(4,355)25,441

8,175

3,323

(4,852)

25,042

13,293

16,1642,870

26,663

Other fees received

14,126

16,344

2,218

32,195

Total

49,63345,513(4,119)109,342

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)First six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

Stocks19,19412,002(7,192)

46,980

Bonds

3,738

2,493

(1,244)

6,370

Beneficiary certificates

21,07324,787

3,713

42,515

Other

5,626

6,230

604

13,475

Total

49,63345,513(4,119)109,3429

<Net trading income>(Millions of yen)First six months of
FY2009First six months of
FY2010(From April 1, 2009
to September 30, 2009)(From April 1, 2010
to September 30, 2010)

Increase(Decrease)

FY2009(From April 1, 2009
to March 31, 2010)

Securities

4,664(3,470)(8,134)

11,267

Bonds

48,90770,306

21,39882,149Other(5,942)(28,180)(22,238)(14,497)

Total

47,62938,654(8,974)78,918(2) Non-consolidated financial position
As of
September 30, 2010

As of March 31, 2010

Increase(Decrease)(Millions of yen)
As of
September 30, 2009

Total assets

15,348,949

12,752,634

2,596,315

12,063,276

Net assets

303,759

626,646(322,887)

632,724

358.6

342.9

15.7

330.9

Net capital regulation ratio(%)

Note 1: The performance results stated for the first six months of FY2009, as of September 30, 2009, 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.

10