Japan Securities Depository Center, Inc.
A N N U A L

R E P O R T

2 0 0 4F O R T H E Y E A R E N D E D M A R C H 31, 2004

Printed in Japan on recycled paper
Uses soybean ink inconsideration of the environment

Corporate Information
As of June 30, 2004

T he Japan Securities Depository Center, Inc. (JASDEC), is the sole central securities

COMPANY NAME:

Japan Securities Depository Center, Inc.

DATE OF INCORPORATION:

January 4, 2002

depository in Japan, designated under the Law Concerning Central Securities Depository

DATE OPERATIONS BEGAN:

June 17, 2002

CAPITAL:¥4.25 billion (shareholders’ equity ¥10.6 billion)

COMMON STOCK ISSUED:

8,500 shares

NUMBER OF SHAREHOLDERS:

193

NUMBER OF EMPLOYEES:106

REGISTERED HEAD OFFICE

1-1, Nihombashi-Kayaba-cho 2-chome

and Book-Entry Transfer of Stock Certificates and Other Securities (CSD Law). JASDEC
provides depository and book-entry transfer services for publicly traded securities, inaccordance with the CSD Law.
In June 2002, JASDEC assumed all businesses previously undertaken by the Japan

Chuo-ku, Tokyo 103-0025, Japan
Phone:

Securities Depository Center — its predecessor organization, which was established in+81-3-3661-0161

Facsimile: +81-3-3661-2810

December 1984 under the CSD Law as a not-for-profit foundation — and began operations as a stock company.

Website:http://www.jasdec.com

OPERATIONS OFFICESJASDEC aims to contribute to the formation of a Japanese financial market that isTokyo Office:6th Floor, Daini-Shoken Kaikan Bldg.
1-1, Nihombashi-Kayaba-cho 2-chome, Chuo-ku, Tokyo 103-0025

highly competitive on an international basis. Toward this end, the Company will utilize its
status as a stock company to make its operations more transparent and strengthen its
financial position, while working to improve the safety, efficiency and convenience of securities settlement systems.

Osaka Office:6-10, Kitahama 1-chome, Chuo-ku, Osaka 541-0041

Nagoya Office:3-17, Sakae 3-chome, Naka-ku, Nagoya 460-0008

Fukuoka Office:14-2, Tenjin 2-chome, Chuo-ku, Fukuoka 810-0001

Sapporo Office:14-1, Minamiichijo-Nishi 5-chome, Chuo-ku, Sapporo 060-0061

SUBSIDIARY COMPANY
Company Name:JASDEC DVP Clearing Corporation

Date of Incorporation:

June 6, 2003

Commenced Operations: May 17, 2004
Capital:¥310 million

Registered Head Office:1-1, Nihombashi-Kayaba-cho 2-chome, Chuo-ku, Tokyo 103-0025

Contents

EstablishedNew corporate
structure

December 6, 1984

January 4, 2002

The Japan Securities Depository
Center established as a not-forprofit foundation in line with theNovember 1984 enforcement ofthe CSD Law.

The Japan Securities Depository
Center, Inc., incorporated as a stockcompany.

1 At a Glance
2 Financial Highlights
3 President’s Message
6 An Interview with the President
9 Ongoing Securities Settlement
System Reform in Japan
14 Business Overview
17 Financial Statements

October 9, 199126 Report of Independent Auditors
27 Non-Consolidated FinancialHighlights
28 Board Members and Auditors
30 List of Participants
32 History
33 Corporate Information
33 Organization Structure

Commenced business as Japan’s
only central securities depository
for stock certificates.

Organization Structure(As of June 30, 2004)● M EETING OF S HAREHOLDERS

June 17, 2002
Assumed all the businesses of theJapan Securities Depository
Center, in accordance with the
CSD Law.

● A UDITORS O FFICE● B OARD OF D IRECTORS● P RESIDENT & CEO● A UDITORS● General Administration Department● General Affairs Section● Accounting Section● Corporate Planning Department● Business Administration Department● Bond and Commercial Paper Department● Business Planning Department

June 6, 2003
Established JASDEC DVP Clearing
Corporation (JDCC) to undertake
clearing services related to the
DVP settlement system for nonexchange transaction deliveries(NETD).

● First System Department● Second System Department● Tokyo Operations Office● Osaka Operations Office● Nagoya Operations Office● Fukuoka Operations Office● Sapporo Operations Office233

At a Glance

SHARES IN CUSTODY228

billion shares
The number of shares in custody reached 228.2 billion as of the endof March 2004.

SHARES TRANSFERRED BY BOOK ENTRY

754

billion shares
Of the 754.7 billion shares transferred by book entry, nonexchange trade transfers accounted for 442.7 billion shares, or58.7% of the total.

Revenues by Operation
Year ended March 31, 2004
Billions of yen

Otherservices¥4.7Custody¥5.0

Book-entry
transfer¥11.1

Note: Refund of fees amounted to¥3.7 billion for the year
ended March 31, 2004.

NUMBER OF ELIGIBLE ISSUING COMPANIES

3,665

companies
We handle the stock certificates of all publicly traded companies
in Japan.
CUSTODY RATIO

64%Shares in custody represents 64.1% of the entire domestic stockmarket. Our custody ratio for convertible bonds reached 96.2% asof the end of March 2004.

Further Expansion

Our Mission
In view of our duty to serve theNovember 26, 2001

public, our mission is to provide ahighly secure, efficient and convenient securities clearing andsettlement infrastructure, which inturn contributes to further development of the securities market.
Toward this end, we place a special
focus on reducing settlement risks,
promoting straight-through processing (STP), and encouraging
greater use of depository servicesfor further immobilization of securities amid progress in the dematerialization of securities certificates.

Began handling convertible bonds.
March 31, 2003
Began handling commercial paper in dematerialized form, in accordancewith the Law Concerning Book-Entry Transfer of Corporate Bonds, etc.
August 20, 2003
Signed a memorandum of understanding with The Depository Trust &Clearing Corporation (DTCC) of the United States.
May 17, 2004
Commenced DVP settlement services for NETD.

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