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.

July 28, 2010

Consolidated Financial Results
for the First 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 first quarter of fiscal year 2010
(from April 1, 2010 to June 30, 2010)(1) Consolidated operating results (cumulative)
Operating revenue
Millions of yen
First three months of
FY2010First three months of
FY2009% Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen%

83,840(18.5)

66,402(16.8)

641(96.3)

6,475(67.2)

102,809(28.3)

79,82518.2

17,559–19,739–Millions of yen%

Yen

Diluted net income
per shareYen

22,799

71.9

31.80

31.80

13,263

–

18.50

18.50

Net income

First three months of
FY2010First three months of
FY2009(Percentages indicate year-on-year changes.)

Net operating revenue

Net income per share(2) Consolidated financial position
Total assets
As of June 30, 2010
As of March 31, 2010

Net assets

Equity ratio

Net assets per share

Millions of yen
22,896,887

Millions of yen
950,443%
2.8

Yen
900.9920,134,713

701,6543.2

889.78Reference: Equity
As of June 30, 2010: 645,998 million yen
As of March 31, 2010: 637,962 million yen
Note:“Equity ratio” is computed under the formula shown below:(Total net assets – Subscription rights to shares – Minority interests) / Total assets

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: Yes
Newly consolidated: 1 company (MM Partnership)
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 June 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 June 30, 2010

– shares

As of March 31, 2010

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

716,985,496 sharesFirst three 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 income·························

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

P. 5(4) Notes on significant changes in the amount of shareholders’ equity·························

P. 5<Reference>
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2011
1.

2.

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

P. 6(1) Breakdown by item·························

P. 6(2) Breakdown by product·························

P. 6

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

P. 6·························

P. 7

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

P. 8(2) Non-consolidated financial position·························

P. 9

1.

Matters on preparing the quarterly consolidated financial statements and others(1) Summary of changes in significant subsidiaries during the current quarter
In relation to the integration in Japan of securities companies Mitsubishi UFJ Financial Group, Inc.,the wholly owning parent company of the Company, and Morgan Stanley, on May 1, 2010, twocompanies, Mitsubishi UFJ Morgan Stanley Securities, Co., Ltd. (“MUMSS”) and Morgan Stanley
MUFG Securities Co., Ltd. (“MSMS”) were established and the partnership agreement regarding
MM Partnership formed for the purpose of holding shares of MUMSS and MSMS has come into
force.
Upon the integration, the Company and Morgan Stanley Japan Holdings Co., Ltd. (“MSJHD”) havecontributed to MM Partnership a portion of the shares of MUMSS and MSMS held respectively.
Specifically, the Company continues to hold shares of MUMSS representing a 60% voting interest
while contributing to MM Partnership all other shares of MUMSS, and MSJHD continues to holdshares of MSMS representing a 51% voting interest while contributing to MM Partnership all othershares of MSMS.
As a result, the Company owns a 60% interest in MM Partnership, qualifying MM Partnership as aconsolidated subsidiary of the Company.
(2) Summary of simplified accounting and particular accounting
None(3) Summary of changes in accounting policies, procedures, and methods of presentationa. Effective from this first quarter, the Company adopted “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, December 26, 2008), “Accounting Standard forConsolidated 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, December 26, 2008) and “Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures” (ASBJ Guidance No. 10, December 26, 2008).
b.

Effective from this first quarter, the Company adopted “Accounting Standard for Asset
Retirement Obligations and its Implementation Guidance” (ASBJ Statement No. 18, March 31,2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ
Guidance No. 21, March 31, 2008).
As a result, Operating income and Ordinary income decreased respectively by 76 million yen
and Income before income taxes and minority interests decreased by 2,549 million yen. Thechanges in Asset retirement obligations due to the adoption of this accounting standard, etc is
3,892 million yen.

1

2.

Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of June 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

116,479
79,76913,068,298
7,345,300
5,722,998–
67,48774,9107,874,441
446,971242,330
2,656
72,928(1,082)

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)

22,045,192

19,550,395

24,60044,402782,691

23,44145,508515,368

851,694

584,318

22,896,887

20,134,713

(Millions of yen)
As of March 31, 2010

As of June 30, 2010
LIABILITIESCurrent liabilities
Trading products

8,130,739

7,540,898

Trading securities and other

2,698,217

2,932,436

Derivatives

5,432,522

4,608,461

Trade date accrual

746,191–

Margin transaction liabilities

12,112

23,908Loans payable secured by securities

9,521,635

8,307,900

Short-term loans payable

1,468,755

1,367,784

Current portion of long-term loans payable

111,694

108,058

Commercial papers

323,300

374,700

Current portion of bonds

114,11385,130

Income taxes payable

2,565

5,901

29

–

Other current liabilities

572,400

651,219

Total current liabilities

21,003,537

18,465,501

Bonds payable

653,121681,530

Long-term loans payable

267,430

266,947

Provision for retirement benefits

11,403

10,773

347

415

3,856

–

Asset retirement obligations

Noncurrent liabilities

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

5,374

6,029

Total noncurrent liabilities

941,534

965,696

Reserve for financial products transaction
liabilities

1,371

1,861

Total reserves under the special laws

1,371

1,861

21,946,444

19,433,059

Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

200,051

184,580

Total shareholders’ equity

682,519

667,047(8,031)(5,382)724

Foreign currency translation adjustment(28,496)(23,726)

Total valuation and translation adjustments(36,520)(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

304,440

63,691

Total net assets

950,443

701,654

22,896,887

20,134,713

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

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

40,88937,787

Net trading income

44,06829,687

192

823

2

(8)

Net gain on private equity and other securities
Other net gain on goods trading
Financial revenue

17,655

15,550Total operating revenue

102,80983,840Financial expenses

22,983

17,438Net operating revenue

79,82566,402

Selling, general and administrative expenses

62,266

65,760Operating income

17,559

641

–

3,060

Foreign exchange gains

1,216

–

Gain on valuation of investment securities

1,481

–

453

3,024

3,151

6,084

Interest expenses

579

167

Equity in losses of affiliates

91

–

Other

301

82

Non-operating income
Equity in earnings of affiliates

Other
Total non-operating income
Non-operating expenses

Total non-operating expenses

971

250

19,7396,475

Gain on sales of investment securities

2

16

Gain on sales of noncurrent assets

0–

Reversal of reserve for financial products
transaction liabilities

3489

Ordinary income
Extraordinary income

Gain on change in equity–

24,111

Total extraordinary income

524,618

4

–

398

111

Loss on sales of noncurrent assets–

2

Compensation for damage, etc.

697

–

–

2,473

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

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Integration-related expenses

–

184

1,100

2,772

Income before income taxes and minority interests

18,64428,321

Income taxes-current

3,423

1,652

Income taxes-deferred

(145)

2,699

Income taxes

3,277

4,352

Total extraordinary loss–

23,968

Minority interests in income

Income before minority interests

2,102

1,169

Net income

13,263

22,7994

(3) Notes on premise of going concern
None(4) Notes on significant changes in the amount of shareholders’ equity
None5<Reference>

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

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

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

FY2009

Increase(Decrease)(From April 1, 2009
to March 31, 2010)

7,727

5,409

(2,318)25,227

Stocks

7,648

5,288

(2,359)24,843

Bonds

44

50

5

253

4,068

2,990

(1,078)39,373

313

1,110

796

24,358

3,755

1,880

(1,875)15,014

6,056

8,004

1,948

26,663

5,977

7,971

1,994

26,46823,036

21,382(1,653)

94,404

18,951

17,837(1,114)75,90240,88937,787(3,101)

185,669

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)

StocksFirst three months of
FY2009First three months of
FY2010(From April 1, 2009
to June 30, 2009)(From April 1, 2010
to June 30, 2010)

8,015

6,459

(1,556)

Increase(Decrease)

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

49,935

Bonds

4,073

2,206

(1,866)

16,415

Beneficiary certificates

24,96325,879915

102,501

Other

3,837

3,243

(593)

16,816

Total

40,88937,787(3,101)

185,669

2. Net trading income(Millions of yen)First three months of
FY2009First three months of
FY2010(From April 1, 2009
to June 30, 2009)(From April 1, 2010
to June 30, 2010)

Increase(Decrease)

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

Securities(6,169)(2,799)3,370

10,653

Bonds

15,08543,05627,971

102,340

Other

35,153(10,569)(45,722)(12,575)

Total

44,06829,687(14,381)

100,418

6

<Reference>

Quarterly Trends in Consolidated Statements of Income

1Q of FY2009(April 1 toJune 30, 2009)

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
Equity in earnings of affiliates
Other
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes andminority interests
Income taxes-current
Income taxes-deferred
Income taxes
Income before minority interests
Minority interests in income
Net income

3Q of FY2009

4Q of FY2009(Millions of yen)
1Q of FY2010(July 1 to
(October 1 to
September 30, 2009) December 31, 2009)(January 1 toMarch 31, 2010)(April 1 toJune 30, 2010)

2Q of FY2009

102,80940,889
7,727
7,648
44

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

4,068

12,957

13,977

8,369

2,990

313
3,755

6,459
6,498

11,570
2,407

6,016
2,353

1,110
1,880

6,056

7,236

6,418

6,951

8,004

5,977
23,036
18,95144,068(6,169)15,08535,153

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)192(1,026)252(2,068)823

217,65522,98379,825(13)
17,873
14,04075,472

1
17,947
9,864
63,799

(0)
6,920
9,782
68,055(8)
15,55017,43866,40262,266

67,15061,98871,69865,76017,80926,416
6,143
4,625
5,167
819
1,284
17,559
3,060
(91)
3,151
880
19,7395
1,100

19,622
26,666
6,904
6,037
5,536
527
1,855
8,321
4,756
(173)
4,930
856
12,221
985
832

17,617
26,114
6,052
4,967
5,391
457
1,386
1,810
6,482
120
6,362
26
8,267
49
370

19,80330,825
6,627
6,098
5,763
680
1,899
(3,642)
4,860
372
4,487
423
794
474
1,137

19,14926,858
6,239
5,653
5,361
813
1,685
641
6,084
3,060
3,024
250
6,475
24,6182,772

18,644

12,3757,946

130

28,321

3,423
(145)
3,277
15,366
2,102
13,2634,000(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
22,7997

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

(1) Non-consolidated operating results(Millions of yen)First three months of
FY2009First three months of
FY2010(From April 1, 2009
to June 30, 2009)(From April 1, 2010
to June 30, 2010)

Operating revenue

FY2009

Increase(Decrease)(From April 1, 2009
to March 31, 2010)

57,96145,945(12,016)

218,163

Commission received

21,12521,556430

109,342

Net trading income

31,90020,431(11,469)

78,918Net operating revenue

53,803

42,117(11,685)

202,965

Operating income (loss)

6,781(4,813)(11,594)

9,327

Ordinary income (loss)

8,125(3,355)(11,480)

11,094

Net income (loss)

7,223(5,446)(12,669)

11,008(Breakdown of operating revenue)<Breakdown by item of commission received>(Millions of yen)First three months of
FY2009First three months of
FY2010(From April 1, 2009
to June 30, 2009)(From April 1, 2010
to June 30, 2010)

7,658

5,865

(1,792)25,441

1,419

1,347

(72)

25,042

6,056

8,004

1,948

26,663

Other fees received

5,992

6,339

347

32,195

Total

21,12521,556430

109,342

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

FY2009

Increase(Decrease)(From April 1, 2009
to March 31, 2010)<Breakdown by product of commission received>(Millions of yen)First three months of
FY2009First three months of
FY2010(From April 1, 2009
to June 30, 2009)(From April 1, 2010
to June 30, 2010)

Stocks

7,963

6,293

(1,669)46,980

Bonds

1,536

1,168

(367)

6,370

Beneficiary certificates

9,706

12,1172,411

42,515

Other

1,919

1,976

57

13,475

Total

21,12521,556430

109,3428

FY2009

Increase(Decrease)(From April 1, 2009
to March 31, 2010)

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

Increase(Decrease)

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

Securities

5,365(2,365)(7,730)11,267

Bonds

13,08541,481

28,39682,149Other

13,449(18,684)(32,134)(14,497)

Total

31,90020,431(11,469)

78,918(2) Non-consolidated financial position
As ofJune 30, 2010

As of March 31, 2010

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

Total assets

13,528,188

12,752,634

775,554

13,120,783

Net assets

307,585626,646(319,061)

632,291

372.4

342.9

29.5

362.1

Net capital regulation ratio(%)

Note 1: The performance results stated for the first three months of FY2009, as of June 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.

9