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, 2010

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2010
Company name: Mitsubishi UFJ Securities Holdings Co., Ltd.
(Previous trade name: Mitsubishi UFJ Securities 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, 2010
Scheduled date to file Securities Report
June 28, 2010
(Millions of yen with fractional amounts disregarded)

1.

Consolidated performance for the fiscal year 2009
(from April 1, 2009 to March 31, 2010)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen
FY2009343,824

FY2008465,850

Net operating revenue% Millions of yen(26.2)

287,153(12.8)

229,972

Net income%
FY2009–FY2008(45,417)–
Reference: Equity in earnings (losses) of affiliates% Millions of yen%–

41,022––(22,788)–

Diluted net
income per share
Yen
40.09
–
228 million yen(4,697) million yen

Net income/equity

Equity ratio

Net assets per share

24,049(5.6)(28,547)Yen
40.10(63.34)As of March 31, 2010:
As of March 31, 2009:

Ordinary income% Millions of yen

24.9

Net income per share

Millions of yen
28,748Operating income

%
4.7
(6.9)

(2) Consolidated financial position
Total assets
As of March 31, 2010
As of March 31, 2009

Net assets

Millions of yen
20,134,713

Millions of yen
701,654

19,030,280

657,438

Reference: Equity
As of March 31, 2010: 637,962 million yen
As of March 31, 2009:
Note:“Equity ratio” is computed under the formula shown below:(Total net assets – Subscription rights to shares – Minority interests) / Total assets

%
3.2

Yen
889.783.1

833.60597,679 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
periodAs of March 31, 2010

(605,490)(26,401)

650,194

132,196

As of March 31, 2009

346,907(68,203)(292,513)

109,213

1

2.

Other

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
(2) Changes in accounting policies, procedures, and methods of presentation for preparing theconsolidated financial statements (changes described in the section indicating changes in significant
matters forming the basis of preparing the consolidated financial statements)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None
Note:

For more details, please refer to the section of “Key items forming the basis of preparation of consolidated
financial statements” on page 14.

(3) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2010:
716,985,496 shares
As of March 31, 2009:
716,985,496 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2010:– shares
As of March 31, 2009:– shares
Note:

With regard to the number of shares as the basis of calculation for basic net income or loss per share(Consolidated basis), please refer to the section of “Per Share Information” on page 21.

2

(Reference) Overview of Non-consolidated performance
1. Non-consolidated performance for the fiscal year 2009
(from April 1, 2009 to March 31, 2010)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen

Net operating revenue% Millions of yen

FY2009218,16314.5

202,965

FY2008

190,503 (25.3)

Net income

Operating income% Millions of yen

Ordinary income% Millions of yen

%

36.1

9,327

–

11,094–

149,087 (29.9)(42,354)–(40,581)–Net income per share

Diluted net
income per share

Millions of yen

%

Yen

Yen

FY200911,008

–

15.35

–

FY2008(57,385)–(80.04)–(2) Non-consolidated financial position
Net assets
per share

Net assets

Millions of yen

Millions of yen

%

Yen

%

As of March 31, 2010

12,752,634

626,6464.9

874.00342.9

As of March 31, 2009

12,952,628

628,0844.8

876.01

353.7

Reference: Equity

Equity ratio

Net capital
regulation ratio

Total assets

As of March 31, 2010: 626,646 million yen

3

As of March 31, 2009:

628,084 million yen

[Consolidated Balance Sheets](Millions of yen)
As of March 31, 2009ASSETS
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
Construction in progress
Lease assets
Intangible assets
Software
Other
Investments and other assets
Investment securities
Long-term loans receivable
Long-term guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total noncurrent assets
Total assets

4

As of March 31, 2010

154,772
77,545
1,0851,001
5,003,515
5,847,486
350,229
71,432
1,640
43,26434,371

168,469
91,588
11,395,146
6,538,721
4,856,424
109,281
67,6501,448
59,02045,958

8,893

13,062

5,957,071

6,765,283

2,798,359

3,180,267

3,158,712
1,991
483,408
1,469
293
89,827
1,722
11,049144,602(138)

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

18,241,186

19,550,395

28,28011,719
9,428
6,995
133
3
50,12848,574
1,554
710,685
687,3103,474
17,733813
5,460(4,106)23,441
10,391
7,626
5,357
60
5
45,50844,165
1,343
515,368
489,398
3,395
－
5,546
20,989(3,962)

789,094

584,318

19,030,280

20,134,713

(Millions of yen)
As of March 31, 2009

As of March 31, 2010

LIABILITIESCurrent liabilities
7,881,704

7,540,898

Trading securities and other

2,213,678

2,932,436

Derivatives

5,668,025

4,608,461

24,40923,908Borrowings on margin transactions

17,487

18,254

Cash received for securities lending on
margin transactions

6,922

5,653

7,443,137

8,307,900

Cash received on debt credit transaction of
securities

3,237,182

3,038,736

Borrowings on Gensaki transactions

4,205,954

5,269,163

Deposits received

76,310132,382

Guarantee deposits received

524,360

438,558

Short-term loans payable

996,304

1,367,784

Current portion of long-term loans payable

58,653108,058

Commercial papers

146,500

374,700

Current portion of bonds

53,45385,130

Income taxes payable

6,931

5,901

Provision for bonuses

9,194

20,630

Other current liabilities

139,941

59,648

Total current liabilities

17,360,901

18,465,501

Bonds payable

650,370

681,530

Long-term loans payable

346,185

266,947

Deferred tax liabilities

2,055

4,363

Provision for retirement benefits

9,168

10,773411

415

Other noncurrent liabilities

1,883

1,665

Total noncurrent liabilities

1,010,076

965,696

Reserve for financial products transaction
liabilities

1,864

1,861

Total reserves under the special laws

1,864

1,861

18,372,842

19,433,059

Trading products

Margin transaction liabilities

Loans payable secured by securities

Noncurrent liabilities

Provision for directors’ retirement benefits

Reserves under the special laws

Total liabilities

5

(Millions of yen)
As of March 31, 2009

As of March 31, 2010

NET ASSETS
Shareholders’ equity
Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

170,580

184,580

Total shareholders’ equity

653,047

667,047(19,687)(5,382)

Valuation and translation adjustments
Valuation difference on available-for-salesecurities–

24

Foreign currency translation adjustment(35,680)(23,726)

Total valuation and translation adjustments(55,368)(29,085)0059,75863,691

Deferred gains or losses on hedges

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

6

657,438

701,654

19,030,280

20,134,713

[Consolidated Statements of Income](Millions of yen)
For the fiscal year ended
March 31, 2010

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

Operating revenue
Commission received

168,124

185,669

Net trading income

81,718100,418402(2,649)Net gain on private equity and other securities

4(9)

Financial revenue

215,600

60,396

Total operating revenue

465,850

343,824

Other net gain on goods trading

Financial expenses

235,878

56,671

Net operating revenue

229,972

287,153

Trading related expenses

86,39274,852

Personal expenses

90,538110,023

Real estate expenses

26,00825,728

Office cost

24,206

21,729Depreciation

20,03521,859Taxes and dues

2,485

2,485

Provision of allowance for doubtful accounts

2,288

999

Other

6,565

5,425

258,520

263,103(28,547)

24,04914,704

8,379

–

228

Selling, general and administrative expenses

Total selling, general and administrative
expenses
Operating income (loss)
Non-operating income
Interest income
Equity in earnings of affiliates

–

8,053

Other

3,136

2,498

Total non-operating income

17,841

19,160–713

Loss on valuation of investment securities

2,053

－

Equity in losses of affiliates

4,697

－

Loss on retirement of noncurrent assets–

443

Foreign exchange losses–

256

Gain on valuation of investment securities

Non-operating expenses
Interest expenses

Other

5,330

773

Total non-operating expenses

12,081

2,187(22,788)

41,022

Ordinary income (loss)

7

(Millions of yen)
For the fiscal year ended
March 31, 2010

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Reversal of reserve for financial products
transaction liabilities
Total extraordinary income

70

1,511

7,446

0

874

3

8,391

1,515

24

9

12,056

660

23

71

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

4,695

1,082

Compensation for damage, etc.

–

726

Loss related to M&A–

469

Integration-related expenses–

289

Impairment loss–

129

16,7993,440

Income (loss) before income taxes and minority
interests(31,196)

39,097

Income taxes-current

12,76912,838

Income taxes-deferred(6,580)(9,883)

Income taxes

6,189

2,954

Loss on liquidation of subsidiaries
Total extraordinary loss

Minority interests in income
Net income (loss)

8

8,032

7,394

(45,417)

28,748

[Consolidated Statements of Changes in Net Assets]

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(Millions of yen)
For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Shareholders’ equity
Capital stock
Balance at end of previous period

65,51865,518–－65,51865,518416,948

416,948–－

416,948

416,948219,721

170,580240－

Dividends from surplus(4,137)(14,748)

Net income (loss)(45,417)

28,748172－

Changes of items during the period
Total changes of items during the period
Balance at end of current period
Capital surplus
Balance at end of previous period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Retained earnings
Balance at end of previous period
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes of items during the period

Change of scope of consolidation
Total changes of items during the period(49,381)

13,999170,580

184,580

702,188

653,047

240－

Dividends from surplus(4,137)(14,748)

Net income (loss)(45,417)

28,748

Balance at end of current period
Total shareholders’ equity
Balance at end of previous period
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes of items during the period

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

9

172

－

(49,381)

13,999653,047

667,047

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(Millions of yen)
For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at end of previous period

1,533(19,687)(21,221)

14,304

Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period(21,221)

14,304(19,687)(5,382)–－

Net changes of items other than shareholders’ equity–

24

Total changes of items during the period

–

24

–

24

10,712(35,680)

Net changes of items other than shareholders’ equity(46,392)

11,953

Total changes of items during the period(46,392)

11,953(35,680)(23,726)

12,246(55,368)(67,614)

26,282

Balance at end of current period
Deferred gains or losses on hedges
Balance at end of previous period
Changes of items during the period

Balance at end of current period
Foreign currency translation adjustment
Balance at end of previous period
Changes of items during the period

Balance at end of current period
Total valuation and translation adjustments
Balance at end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period(67,614)

26,282(55,368)(29,085)

100

0Net changes of items other than shareholders’ equity

(100)

－

Total changes of items during the period

(100)

－

0

0

Balance at end of current period
Subscription rights to shares
Balance at end of previous period
Changes of items during the period

Balance at end of current period

10For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(Millions of yen)
For the fiscal year ended
March 31, 2010
(From April 1, 2009
to March 31, 2010)

Minority interests
Balance at end of previous period

57,04659,758Net changes of items other than shareholders’ equity

2,711

3,933

Total changes of items during the period

2,711

3,933

Balance at end of current period

59,75863,691

771,582

657,438

240－

Dividends from surplus(4,137)(14,748)

Net income (loss)(45,417)

28,748Changes of items during the period

Total net assets
Balance at end of previous period
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes of items during the period

172－

Net changes of items other than shareholders’ equity(65,003)30,216

Total changes of items during the period(114,384)

44,216

Balance at end of current period

657,438

701,654

Change of scope of consolidation

11

[Consolidated Statements of Cash Flows]

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(Millions of yen)
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(31,196)

39,097

Depreciation and amortization

20,03521,859Amortization of 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 losses (earnings) of affiliates
Loss (gain) on sales of investment securities

(86)

(233)

(2,146)

1,605

(288)

4

2,174

685

(874)

(3)

(231,870)(69,664)

236,557

57,385

4,697

(228)

(46)

(1,501)

Loss (gain) on sales of noncurrent assets(7,423)71

Loss on valuation of investment securities

12,056(7,393)

Impairment loss

4,695

1,082

Compensation for damage, etc.

–

726

Loss related to M&A–

469

Integration-related expenses–

289

Loss on liquidation of subsidiaries
Decrease (increase) in cash segregated as deposits forcustomers
Decrease (increase) in trading products-assets (liabilities)–

129

33,179(12,940)(1,534,310)(854,795)

Decrease (increase) in trade date accrual(331,498)

235,534

Decrease/increase in assets/liabilities for margin transaction

45,826(16,244)

Decrease/increase in loans/borrowings secured by securities

2,254,534

19,959Decrease/increase in advance paid/deposits received(12,758)

52,122

Decrease (increase) in short-term guarantee deposits(348,345)

77,543

Increase (decrease) in guarantee deposits received

220,279(114,821)

Other, net

42,159(38,589)

Subtotal

375,349(607,851)

Interest and dividends income received

233,141

75,617

Interest expenses paid

(253,838)(57,860)–(726)

Compensation for damage, etc. paid
Payments for loss related to M&A

–

(469)

Integration-related expenses paid

–

(260)

Payments for loss on liquidation of subsidiaries

–

(58)

Income taxes paid

(7,744)(13,881)

Net cash provided by (used in) operating activities

346,907(605,490)

12

For the fiscal year ended
March 31, 2009
(From April 1, 2008
to March 31, 2009)(Millions of yen)
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(2,667)

Proceeds from withdrawal of time deposits

24,214

12,293Purchase of short-term investment securities(6,897)(225,307)

Proceeds from sales and redemption of securities(3,558)18,999157,910(101,367)(46,810)Proceeds from sales and redemption of investment securities

19,57491,727Purchase of property, plant and equipment(5,556)(3,006)

Purchase of investment securities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Decrease (increase) in call and other loans
Payments for sales of investments in subsidiaries resulting
in change in scope of consolidation
Other, net

8,530

1,532

(23,818)(12,625)

(372)

1,453

–

(10)

1,156

－

(68,203)(26,401)(485,167)

374,043

Increase (decrease) in commercial papers

5,200

228,200

Proceeds from long-term loans payable

60,85079,583

Repayment of long-term loans payable(44,155)(108,110)Proceeds from issuance of bonds

239,568

255,167

Redemption of bonds(64,269)(162,850)

Cash dividends paid

(4,137)(14,748)

Payments of cash dividends to minority shareholders(969)(1,208)Proceeds from stock issuance to minority shareholders

566

117

Net cash provided by (used in) financing activities(292,513)

650,194

Effect of exchange rate change on cash and cash equivalents(37,484)

4,680

Net increase (decrease) in cash and cash equivalents(51,293)

22,982

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

160,743

109,213(236)－

109,213132,196

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

13

[Notes on premise of going concern]
None[Key items forming the basis of preparation of consolidated financial statements]
1. Scope of consolidation(1) Number of consolidated subsidiaries: 30 companies (previous year: 30 companies)
Names of principal consolidated subsidiaries
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 Spin-off Preparation 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) Capital, Limited
Mitsubishi UFJ Securities (HK), Limited
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.
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) Palace Capital Partners Co., Ltd. has changed its trade name to NCS Holdings Co., Ltd. as of
May 1, 2009.
(Addition)
Mitsubishi UFJ Securities Spin-off Preparation Co., Ltd.
The above company was newly consolidated upon its establishment.
(Exclusion)
Mitsubishi UFJ Securities (India) Private Limited
The above company was excluded from the scope of consolidations since the Company sold its
holding shares.

14

(2)

Names of companies or other entities not considered to be subsidiaries although the Company
holds, in its own calculation, the majority of voting rights (business execution rights) of thecompanies 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
Besta Foods Co., Ltd.
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 asbusiness transactions for such purposes of incubation business, business revitalization andacquiring capital gains thereby and were not intended to place the companies under control.

2. Application of equity method(1) Seventeen affiliates are under the equity method (seventeen in previous fiscal year)
Names of principal equity-method affiliates
Works Capital Inc.
Marunouchi Capital Co., Ltd.
KE Capital Partners Pte. Ltd.
Kim Eng Holdings Limited
Sino Roosevelt Investment Partners 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
SuperIndex inc.
Street Design Corp.
MARS ltd.
Cifra 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 the companies undercontrol.

15

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
21 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, 22 subsidiaries for which the difference in closing dates was three months orless were accounted for based on the financial statements as of the financial closing date of eachsubsidiary. However, necessary adjustments were made to the consolidated financial statements forany significant transactions that took place between the end of the fiscal year of each subsidiaryand the end of the consolidated fiscal year. With regard to the one subsidiary for which thedifference in closing dates exceeded three months, the accounts were provisionally closed at theend of the consolidated fiscal year for the preparation of financial statements.
4. Accounting standards for primary allowances
Provision for retirement benefits
In order to prepare for the payment of retirement benefits to employees, the amount of an estimateof the projected benefit obligation and the fair value of employees’ pension plan assets as of the
fiscal year ended March 31, 2010, is booked. Prior service cost is amortized by the straight-line
method over a certain term within the average remaining service period of the eligible employees(12 years). With regard to unrecognized net actuarial gain or loss, the amount is amortized by thestraight-line method over certain terms within the average remaining service period of the eligible
employees (primarily 12 years) for each applicable consolidated fiscal year, and expensed mainly
from the following fiscal year in which the gain or loss is recognized.
(Change of Accounting Policy)
Effective from the fiscal year ended March 31, 2010, the Company adopted Partial Amendments to“Accounting Standard for Retirement Benefits” (Part 3) (ASBJ Statement No. 19, July 31, 2008).
Since the actuarial differences are amortized starting from the next fiscal year, the adoption of thisamendment does not give any impact on Operating income, Ordinary income and Income before
income taxes and minority interests. Besides, the unrecognized differences of projected benefit
obligation, which are arisen upon the adoption of this accounting policy, are 576 million yen.
5. Major hedge accounting(1) Hedge accounting
Fair value hedge and deferred hedge that specifies foreign exchange contracts (foreign exchange
swap transactions) and interest rate swaps as hedging instruments were adopted. Exceptional
accounting treatment was applied to interest rate swap transactions that meet necessary criteria.
(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 (other securities andownership in investments in overseas subsidiaries, etc.)
b. Interest rate volatility risk
Hedging instrument:interest rate swaps
Hedged items:
investment securities (other securities) and loans payable

16

(3)

Hedging policy
Foreign exchange contracts (foreign exchange swap transactions) are used to avoid the exchange
rate volatility risk in part of foreign currency denominated financial assets, while interest rate
swaps are used to evade the interest rate volatility risk in certain investment securities (othersecurities) and loans payable. 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.
For transactions that meet the criteria for applying the exceptional accounting treatment forinterest rate swaps, the evaluation for the effectiveness of the hedging activities is omitted.

Disclosure of the items other than above was omitted because there were no significant changes from thelatest securities report (submitted on June 26, 2009).
[Changes in the Method of Presentation](Consolidated balance sheets)“Long-term guarantee deposits” (balance as of March 31, 2010: 15,797 million yen), separately
classified and presented until the previous fiscal year, is included in “Other” of investments andother assets as a result of decreased accountability in the total assets as of the fiscal year underreview.
(Consolidated statements of income)1. “Interest expenses,” previously included in “Other” of non-operating expenses, is separately
classified and presented effective the fiscal year under review as a result of its increase to over
10% of the total non-operating expenses. For the previous fiscal year, “Interest expenses” included
in “Other” of non-operating expenses was 678 million yen.
2.

“Loss on retirement of noncurrent assets,” previously included in “Other” of non-operating
expenses, is separately classified and presented effective the fiscal year under review as a result of
its increase to over 10% of the total non-operating expenses. For the previous fiscal year, “Loss onretirement of noncurrent assets” included in “Other” of non-operating expenses was 704 million
yen.

3.

“Foreign exchange losses,” previously included in “Other” of non-operating expenses, is separately
classified and presented effective the fiscal year under review as a result of its increase to over
10% of the total non-operating expenses. For the previous fiscal year, “Foreign exchange losses”
included in “Other” of non-operating expenses was 975 million yen.

[Omission of disclosure]
Disclosure of items relating to Lease transactions, Related-party transaction, Tax effect accounting,
Financial instruments, Securities, Derivative transaction, Retirement benefits, Stock options,
Business combination and Rental property were omitted because they were considered immaterial
for this financial statement purpose.

17

Segment Information
1. Segment information by business type
The Company and its group is engaged in business activities centered on the financial instruments
transaction business including 1) trading of securities, 2) brokering of securities purchases and sales,
3) underwriting and secondary distribution of securities, 4) public offering and distribution of
securities and 5) private placements of securities. These business activities are associated with theprovision of financing and other services and the group earns a profit from offering a unified service.
Hence, the Company and its group believe that our business belongs to a single segment of“investment and financing services.”
2. Segment information by geographic area
For the fiscal year ended March 31, 2009 (From April 1, 2008 to March 31, 2009)
Net operating revenue, selling, general and administrative expenses, operating income and assets bylocation are as follows.

Japan
I. Net operating revenue
and operating income(loss)Net operating revenue
Net operating
revenue fromexternal customers
Inter-segment net
operating revenue
Total
Selling, general andadministrative
expenses
Operating income(loss)
II. Assets(Note)

EuropeAsia

North
America

Subtotal(Millions of yen)
Elimination
or
Unallocated Consolidated

203,745

21,652

2,413

2,161

229,972–

229,972

8,871

1,493

383

5,820

16,568(16,568)–

212,616

23,145

2,797

7,981

246,541(16,568)

229,972

235,862

31,821

2,226

5,731

275,641(17,121)258,520(23,245)(8,676)

570

2,250

(29,100)

553(28,547)

12,351,276

6,719,992

26,928595,036

19,693,234(662,953)

19,030,280

Method of classification by country or region and major countries or regions belonging to each classification(1) Method of classification by country or region ······························· By geographical proximity(2) Countries or regions under each classification
Europe ·········································· U. K., Switzerland, Germany
Asia ·············································· China (Hong Kong, Shanghai), Singapore, India
North America ······························ U. S. A.

18

For the fiscal year ended March 31, 2010 (From April 1, 2009 to March 31, 2010)
Net operating revenue, selling, general and administrative expenses, operating income and assets bylocation are as follows.

Japan
I. Net operating revenue
and operating income(loss)Net operating revenue
Net operating
revenue fromexternal customers
Inter-segment net
operating revenue
Total
Selling, general andadministrative
expenses
Operating income(loss)
II. Assets(Note)

EuropeAsia

North
America

Subtotal(Millions of yen)
Elimination
or
Unallocated Consolidated

254,602

20,795

1,009

10,745287,153－

287,153

6,296

4,593

395

5,199

16,484(16,484)－

260,898

25,3891,404

15,945

303,637(16,484)

287,153

232,395

34,101

2,433

10,962279,892(16,788)263,10328,503(8,712)(1,029)4,983

23,745304

24,04912,878,616

6,817,596

21,394

1,637,066

21,354,673(1,219,959)

20,134,713

Method of classification by country or region and major countries or regions belonging to each classification(1) Method of classification by country or region ······························· By geographical proximity(2) Countries or regions under each classification
Europe ·········································· U. K., Switzerland, Germany
Asia ·············································· China (Hong Kong, Shanghai), Singapore, India
North America ······························ U. S. A.

3. Overseas sales (Net operating revenue)
For the fiscal year ended March 31, 2009 (From April 1, 2008 to March 31, 2009)
Net operating revenue (excluding internal revenues between consolidated companies) earned by theCompany and its consolidated subsidiaries in countries or regions other than Japan are as follows:

I. Overseas net operating revenue
II. Consolidated net operating
revenue
III. Overseas sales as a percentage
of consolidated net operating
revenue(Note)(Millions of yen)
Total

OthersEurope20,2094,170

24,380229,972

8.8%

1.8%

10.6%

Method of classification by country or region and major countries or regions belonging to each classification(1) Method of classification by country or region ······························· By geographical proximity(2) Countries or regions under each classification
Europe ·········································· U. K., Switzerland, Germany
Others ··········································· U. S. A., China (Hong Kong, Shanghai), Singapore

19For the fiscal year ended March 31, 2010 (From April 1, 2009 to March 31, 2010)
Net operating revenue (excluding internal revenues between consolidated companies) earned by theCompany and its consolidated subsidiaries in countries or regions other than Japan are as follows:

I. Overseas net operating revenue
II. Consolidated net operating
revenue
III. Overseas sales as a percentage
of consolidated net operating
revenue(Note)(Millions of yen)
Total

OthersEurope18,941

12,02330,964
287,153

6.6%

4.2%

10.8%

Method of classification by country or region and major countries or regions belonging to each classification(1) Method of classification by country or region ······························· By geographical proximity(2) Countries or regions under each classification
Europe ·········································· U. K., Switzerland, Germany
Others ··········································· U. S. A., China (Hong Kong, Shanghai), Singapore

20Per Share Information
For the fiscal year ended
March 31, 2009
(From April 1, 2008 to March 31, 2009)
Net assets per share
833.60 yen
Basic net income (loss) per share(63.34) yen
Diluted net income per share is not presented because, in spiteof the existence of potential shares, net loss was recorded forthe fiscal year.

For the fiscal year ended
March 31, 2010
(From April 1, 2009 to March 31, 2010)
Net assets per share
889.78 yen
Basic net income per share
40.10 yen
Diluted net income per share
40.09 yen

(Note) The basis of calculation for basic net income or loss per share and diluted net income per share is as follows.
(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2009
March 31, 2010
(From April 1, 2008 to March 31, 2009) (From April 1, 2009 to March 31, 2010)
Basic net income or loss per share
Net income (loss)(45,417)
28,748Net income not attributable to––common stockholder
Net income (loss) attributable to(45,417)
28,748common stock
Average number of common shares
716,985
716,985(Thousand shares)
Diluted net income per share
Adjustments of net income–(1)(Adjustments due to potential shares(–)(1)
issued by affiliates)
Increase in common stock––(Thousand shares)
Summary of potential shares that are not Subscription rights to shares issued by
Subscription rights to shares issued byincluded in calculation of diluted net
consolidated subsidiaries
consolidated subsidiaries
income per shares due to a lack of
MU Hands-on Capital Ltd.
MU Hands-on Capital Ltd.
dilution effectNumber of types
2
Number of types
2
Number of units
620
Number of units
620
Palace Capital Partners A Co., Ltd.
The number of types and units ofsubscription rights of Palace CapitalPartners A Co., Ltd. were not presented
because it was excluded fromconsolidation as of January 1, 2009.
Capital Partners A Co., Ltd. changed its
company name to Foodsnet Corporationon the same date.
Subscription rights to shares issued byaffiliated company.
Kim Eng Securities (Thailand)
Public Company Limited
Number of types
1
Number of units
5,457,200

21

Reference: Consolidated Financial Results
for the Fiscal Year Ended March 31, 2010
1. Commission received(1) Breakdown by item
(Millions of yen)
FY2008FY2009(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

29,911

25,227(4,684)29,311

24,843(4,467)

423

253

(170)

18,75339,373

20,6196,893

24,35817,465

Bonds
Fee for offering, secondary distribution
and solicitation for selling and others for
professional investors
Beneficiary certificates

11,86015,014

3,154

18,42826,6638,235

17,937

26,468

8,530

Other fees received

101,031

94,404(6,626)

Commission to consignees
Stocks
Bonds
Commission for underwriting, secondary
distribution and solicitation for selling andothers for professional investors
StocksBeneficiary certificates
Total

Increase(Decrease)85,87775,902(9,974)

168,124

185,669

17,544(2) Breakdown by product(Millions of yen)
FY2008FY2009(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

Stocks36,59849,935

13,337

Bonds

13,22816,4153,186

Beneficiary certificates

103,990

102,501(1,489)Other

14,307

16,816

2,509

Total

168,124

185,669

17,544

Increase(Decrease)

2. Net trading income(Millions of yen)
FY2008FY2009(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

Increase(Decrease)

Securities(37,763)

10,653

48,417

Bonds

138,843

102,340(36,502)

Other(19,360)(12,575)

6,785

Total

81,718100,418

18,69922

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
Equity in earnings of affiliates
Other
Non-operating expenses
Ordinary income (loss)
Extraordinary income
Extraordinary loss
Income (loss) before income taxes andminority interests
Income taxes-current
Income taxes-deferred
Minority interests in income
Net income (loss)(Millions of yen)
3Q of FY2009 4Q of FY2009

4Q of FY2008

1Q of FY2009(January 1 toMarch 31, 2009)(April 1 toJune 30, 2009)

92,641
37,107
5,801
5,696
61

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

6,598

4,068

12,957

13,977

8,369

2,099
4,498

313
3,755

6,459
6,498

11,570
2,407

6,016
2,353

2,708

6,056

7,236

6,418

6,951

2,652
21,99918,376
20,051(21,885)
45,367(3,431)

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)(4,001)192(1,026)252(2,068)

4
39,48035,251
57,3892
17,65522,98379,825(13)
17,873
14,04075,472

1
17,947
9,864
63,799

(0)
6,920
9,782
68,05558,62962,266

67,15061,98871,69822,62816,188
6,395
6,151
4,989
606
1,668
(1,239)(17,239)412(17,651)
4,063(22,542)66
4,772

17,80926,416
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

(27,247)

18,644

12,375

7,946

130

4,181
(228)
729
(31,929)

3,423
(145)
2,102
13,2634,000(2,439)
1,628
9,184

2,610
602
2,042
2,690

2,803
(7,901)
1,619
3,609

23

2Q of FY2009(July 1 to
(October 1 to
September 30, 2009) December 31, 2009)(January 1 toMarch 31, 2010)