Group Management Strategy

Seventh Medium-Term Management Plan

Strategies

Japan Securities Finance Co., Ltd. (“JSF,” or “the Company”) formulated its Seventh Medium-Term Management Plan,

Nine Strategies and Two Goals

which covers the three-year period from FY2023 through FY2025 (April 1, 2023 to March 31, 2026), and announced it

Enhance the loans
for margintransactions
business as part of
securities market
Expand and enhance infrastructure

in February 2023. The Company later revised the 5% ROE management goal in its Medium-Term Management Policy
upward in light of the expected achievement of this goal in FY2023, two years ahead of schedule. (Note that thefollowing data is as of this revision.)
Based on our Management Philosophy, Long-Term Management Vision and Seventh Medium-Term Management

securities financing

Plan, we will continue to focus the collective efforts of JSF and its Group companies on achieving sustainable growth2

and increasing corporate value over the medium to long term while maintaining strong financial soundness as asecurities finance company that performs infrastructure functions for the securities and financial markets.

Our Vision

Management
Goals

Strengthen thebusinessmanagement
structure

As Japan’s only securities finance company supporting the infrastructure functions of securities
and financial markets, JSF aims to be a distinct and unique company that operates with a highdegree of agility and flexibility. It will achieve sustainable growth and enhance its corporate value,
while maintaining strong financial soundness and contributing to the development of securities
and financial markets.

· C onsolidated ordinary profit: Maintain a stable level of over ¥10 billion and aim forfurther improvement.

Management Principles

1

20

1

To practice sound business management by thoroughly implementing compliance, corporate
governance, and risk management under a strong governance system, thereby establishing solid
credibility, while always maintaining a keen awareness of our social responsibilities as a securities
finance company.

2

To enhance corporate value while maintaining solid equity capital in order to ensure stability inmanagement and the financial soundness required of a securities finance company that supports
the infrastructure functions of the securities and financial markets, and to continue to enhance
returns to shareholders.

3

To further enhance JSF’s core loans for margin transactions business while also striving tostrengthen and expand the finance- and securities-related services provided by JSF and Group
companies and to further grow and solidify our business base.

4

To build a quick and efficient business management structure and strengthen our human resourcebase in order to address changes in the business environment in a timely and flexible manner, andto improve our corporate vitality and organizational transformation capabilities.

above 5% and aim forfinancial soundness• Achieve sustainablegrowth and medium- tolong-term enhancementof corporate value
89Enhance the loans for margin transactions business as partof securities market infrastructure

Expand and enhance securities financing

Reinforce consolidated management of the Group

Secure stable revenues through securities investment andincrease fund-raising methods

Secure stable revenues from securities investments by reviewing the portfolio in anagile manner in response to changes in the external environment, underappropriate risk control. We will also work to expand stable funding methods,
including foreign currency, in order to meet the diverse requirements of our clients.

5

Maintain a stable level ofover ¥10 billion and aim forfurther improvement.

Promotesustainability

Pursue greater collaboration among Group companies in the areas of sales,risk management and operational management, and otherwise strengthen theGroup’s consolidated management.

4

Consolidated
ordinary profit

7 Strengthen ourcompetitive basethrough efficientbusiness
operations

JSF will effectively leverage its accumulated expertise in funds and securities
transactions to proactively handle diverse transactions with domestic andoverseas financial instruments business operators, etc., and expand and enhance
securities financing by widening the range of clients, target currencies andsecurities, etc., to increase revenue opportunities.

3

further improvement.

Pursue the
5 developmentof new business

JSF will appropriately respond to changes in the environment facing the stock
market and ensure the stable operation and improve the convenience of theloans for margin transactions business. Also, based on our ability to accurately
grasp the trading requirements of market participants, we will review measures
to promote the use of loans for margin transactions, strengthen the disseminationof information related to standardized margin transactions and loans for margintransactions, and strive to strengthen the foundation of the loans for margintransactions business.

2

Maintain a stable level3

Strengthen humanresource development
and improveengagement· ROE: Maintain a stable level above 5% and aim for further improvement.

ROE• Maintain strong

Secure stablerevenues throughsecurities investment
4and increase fundraising methods

6

Vision of the
Future Targetedby JSF1

Reinforce
consolidated
management of
the Group

6

Strengthen the business management structure

We will proactively meet our social obligations, and reaffirm compliance as amanagement prerequisite for achieving our corporate philosophy.
To establish unwavering public trust in JSF, we aim to ensure the effectivenessof our internal auditing and further enhance our risk management in responseto the increasingly diverse and complex risks associated with the finance business.

7

Strengthen our competitive base through efficientbusiness operations

As transaction volume increases and operations become more complex, theCompany will strive to build an efficient operational structure by reviewing
business processes and proactively utilizing digital technology to strengthen
its competitive base.

8

Strengthen human resource development and improveengagement

Through our efforts to strengthen human resource development and rebuild
our human resource portfolio, centered on ensuring diversity and on
strengthening professionalism and independence, as well as by improving
employee engagement, JSF will improve its corporate vitality andorganizational transformation capabilities.

9

Promote sustainability

In addition to striving to further strengthen our business continuity structureso that we can stably perform infrastructure functions for the securities andfinancial markets, JSF will also steadily address important issues related tosustainability, such as addressing climate change and environmental preservation.

Pursue the development of new business

Leveraging its characteristics as a securities finance company, JSF will workfrom a long-term perspective to develop and launch new business operations
in cooperation with related parties both inside and outside the Company, as
well as with Group companies.

Japan Securities Finance Co., Ltd.

Integrated Report 2023

Japan Securities Finance Co., Ltd.

Integrated Report 2023

21

Group Management Strategy

Message from the Officer Responsible for
Corporate Strategy
Management Strategy
In the Seventh Medium-Term Management Plan, in addition toaccelerating and deepening our initiatives to date, we will

ROE and PBR(%)
5ROE (Left axis)

at a stable level above 5% and aim for further improvement(details on page 20: Seventh Medium-Term Management

3.79

4

Plan). Here I will explain our business portfolio, our efforts to

2.59

returns, and our initiatives for corporate governanceand sustainability.

Business Portfolio
The JSF Group is keenly aware of its public role as part of theinfrastructure of Japan’s securities and financial markets, and

1.90

1

2.65 2.66

0.54
0.42

0.91 0.8

3.03

2.19
0.40

0.59

0.6

0.64

0.4

0.38 0.35

0.30

implement management with an awareness of the cost of equity
and stock price, as well as our growth strategy, shareholder

2.98

0.55

3
2

1.0

4.36

strengthen the human resource base, and continue management
efforts toward the management goal we set for ROE: maintain

5.11 (Times)

PBR (Right axis)

0.2

0

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 (Sep.)(As of March 31, unless otherwise noted)
Notes: PBR is the value at the end of each fiscal year (March 31, except for 2023).
R OE for 2023 (Sep.) has been calculated using the estimated consolidated
results announced on November 6, 2023, and PBR for 2023 (Sep.) has
been calculated using the stock price on September 30, 2023.

Total Shareholder Return (Index*)
(%)
250

JSF

TOPIX (incl. dividends)

242.5

provides a variety of related services to meet the diverse needsof the securities and financial sectors. These services mainly

Aiming to be a company that earns the trust of all stakeholders

involve securities financing centered on loans for margintransactions, a licensed business. Since this core business isgreatly affected by market fluctuations and other factors, weYutaka Okada

will work to achieve our management goals while staying
mindful of the importance of further improving capital efficiency
in each business. Based on this approach, the JSF Group will

FY2022 Consolidated Financial Results

tighter supply and demand for government bonds amid expansion of
government bond purchases and expectations of policy changes by

In FY2022, the trend toward recovery from the economic

the Bank of Japan. In addition, our subsidiary JSF Trust and Banking

stagnation caused by the COVID-19 pandemic continued.

is focusing on custodial trust services including preservation trusts,

However, stock market movement remained stuck in a narrow

but asset-backed loan trusts were its main growth driver, and trust

range due to uncertainties about the future, including the conflictfees in FY2022 once again reached a record high. On the other hand,in Ukraine, inflation, and the risk of economic downturn due toin response to changes in the external environment, including risingtightening of fiscal policies in the United States and Europe.

interest rates overseas, we adjusted our portfolio of securities holdings

In these circumstances, consolidated results for FY2022
were operating profit of ¥6,354 million, a 1.9% increase year onin anticipation of operations going forward, and recorded a loss
on sales of foreign bonds.

year, ordinary profit of ¥7,601 million, a 6.1% increase, and

ROE in FY2022 was 4.36%, achieving the medium-term goal

profit attributable to owners of parent of ¥5,966 million, aof 4% ROE in the Medium-Term Management Policy announced in

15.3% increase.

November 2021.
Based on our estimates of results at the end of the interim

The driver of the profit increase in FY2022 was the strong
performance of securities financing, continuing on from FY2021.

period of FY2023, we are expecting ROE of 5.11% for theBond repo and gensaki transactions increased substantially, driven by

fiscal year.

150
100

(Millions of yen)

FY2021

FY2022

its business portfolio, which consists of securities financing

50

132.9
94.9
92.8

154.5
85.9

122.1

124.5

131.8

82.2

0
2019

2020

2021

2022
2023
2023 (Sep.)(As of March 31, unless otherwise noted)* Closing stock price on March 31, 2018 = 100%.

centered on loans for margin transactions, as well as securities
investment, trust banking and real estate leasing.

Efforts to Implement Managementwith an Awareness of the Cost of
Equity and the Stock Pricesoundness and business scope imposed by laws and regulations,and standards for participation in securities and fund settlement
systems, among others. As such, I believe that our cost of equity
is considerably lower than the general level because our businessis characterized by low strategic risk and high financial andearnings stability. We will continue our efforts to steadily

In our Medium-Term Management Policy and the Seventh

strengthen our earnings base and seek the stable and steady

Medium-Term Management Plan, we originally set the goal of

improvement of capital efficiency, while remaining mindful of

5% ROE, which exceeds the cost of equity (around 4.5%), andthe cost of equity, as we continue to work toward the steadyhave been continuing management efforts toward that goal.

improvement of ROE, with the 8% level in mind.

From the viewpoint of further enhancing shareholder returns,
we are aiming for a total payout ratio of 100% on a cumulative

Growth Strategy

basis from FY2021 through FY2025 by paying dividends andrising transaction needs due to firm demand for collateral as well as

FY2022 Consolidated Results

seek to achieve the Vision of the Future Targeted by JSF through

175.9
156.3

are continuing our efforts to diversify revenue sources, andSenior Managing Executive Officer Responsible for Corporate Strategy

22

200

Year-on-year change

flexibly implementing share buybacks. In FY2022, the annual

The other management goal of the Seventh Medium-Termdividend was ¥32.0 per share, and we repurchased approximately

Management Plan is for consolidated ordinary profit: maintain¥3.0 billion in shares.

at a stable level of over ¥10 billion and aim for further improvement.

With these efforts, we project that we will achieve the goal

To achieve this goal, we must increase our earning power. Ourof 5% ROE two years ahead of schedule. In addition, the PBR

central strategy in sales in the Seventh Medium-Term Management

Operating revenue

30,13842,518+12,380

is now near 1.0 times, and total shareholder return (TSR) has

Plan is to further strengthen the loans for margin transactions

Operating expenses

16,53328,765+12,231

risen to a level that is well above the TOPIX average.

business and securities financing (details on page 26: Securities

General and administrative expenses

7,368

7,398

+29

Based on objective data and according to multiple

Financing Centered on Loans for Margin Transactions), but weOperating profit

6,235

6,354

+119

calculation methods, we have estimated our cost of equity towill also secure stable revenues in all of the businesses in our

Ordinary profit

7,164

7,601

+436

be around 4.5%. As a securities finance company that supports

portfolio. In the securities investment business, our basic

Profit attributable to owners of parent

5,174

5,966

+792

the infrastructure of Japan’s securities and financial markets,policy is to secure stable earnings by accumulating carry

ROE

3.79%

4.36%

+0.57%

we are subject to various restrictions in terms of financial

income based on low-interest funding backed by our highJapan Securities Finance Co., Ltd.

Integrated Report 2023

Japan Securities Finance Co., Ltd.

Integrated Report 2023

23

Group Management Strategy

Message from the Officer Responsible for Corporate Strategy
creditworthiness. Thus, we appropriately control market risk
within our risk appetite framework (RAF), expanding stablemeans of funding, including foreign currencies, as well as

Corporate Governance Initiatives

Representative Executive Officer & President, the Nomination

Development Goals (SDGs) adopted by the United Nations,Composition of the Board of Directors

Committee continues to discuss a preliminary list of candidates

and is an area in which JSF believes it is particularly welland requisite qualities.

positioned to contribute as a company that has long

JSF transitioned to a Company with a Nominating Committee,

focusing efforts on liquidity management. The trust banking

etc. in 2019, and the Board of Directors currently comprises

business flexibly meets transaction needs for various types offive outside and two inside directors. Accounting for about

preservation trusts, including trusts for cash segregated as
deposits, and custodial trusts such as asset-backed loan (ABL)
trusts. The real estate leasing business will continue to steadily
promote leasing of buildings owned by the JSF Group (for70% of board members, outside directors are central informulating management policies and in making personnel andremuneration decisions involving executive management. In

Officer Remuneration
Along with the formulation of the Seventh Medium-Term
Management Plan, JSF revised officer remuneration in FY2023
to ensure that incentives are aligned with our management
policy. Performance-linked remuneration is divided into
short-term and long-term incentives, with bonuses positioned

supported infrastructure functions of Japan’s securities andfinancial markets. Based on that belief, in addition to thegovernance initiatives described above, we are carrying out
environmental and social initiatives. Specifically, we provided
technical assistance to and invested in an Indonesian
securities finance company as a contribution to securities anddetails of subsidiary businesses, see pages 32–33).

consideration of the balance between executive and non-Shareholder Returns

composition of the board was further reconsidered, and a

From the perspective of further enhancing shareholder returns,of Shareholders in June 2023.

were also made to remuneration through a resolution of the

we are aiming for a total payout ratio of 100% on a cumulative

Initiatives of the Board of Directors andthe Nomination Committee

Status of Dialogue with Shareholders

and presented a paper summarizing the research findings

As a Prime market listed company, JSF, in accordance with(details on pages 54–55). We also recognize that addressing

Japan’s Corporate Governance Code, engages in dialogue

climate change is a critical issue. Although our CO2 emissions

with its shareholders in a positive manner, within a reasonable

have never been large due to the nature of our businesses,

scope, in order to contribute to the sustainable growth andin line with the TCFD recommendations, we disclose information

the enhancement of corporate value over the medium to longon climate change on our corporate website and elsewhere

term. The three main themes and matters of interest that came(details on pages 56–58).

executive directors, as well as diversity of age and gender, thesecond woman director was elected by the General Meetingbasis from FY2021 to FY2025 through dividends and flexible
implementation of share buybacks. Under this policy, dividends
for FY2022 were ¥32.0 per share, an increase of ¥2.0 from theIn FY2022, following a series of discussions by the Board of
the nomination process for management executives and efforts

in share buybacks from the market, for a total payout ratio

to improve the transparency of that process were disclosed onof 97.6%.

the Company website. Specifically, the appointment process

For FY2023, we continue to aim for a total payout ratio of

involves discussion by the Nomination Committee of a preliminary

100% through dividends and flexible implementation of sharelist of candidates, which is narrowed down to a short list frombuybacks based on our Shareholder Return Policy during thewhich the final decision is made following interviews with the

Period of the Seventh Medium-Term Management Plan

individual candidates. To improve the transparency of thisformulated in consideration of our Long-Term Management

process, the status of the nomination process, particularly

Vision. Accordingly, we plan to increase the dividend to ¥44.0

the active involvement of outside directors and the approach

per share for FY2023, and our policy for FY2024 through FY2025
is to actively pay dividends, aiming for a target payout ratio of
70%. We remain committed to enhancing shareholder returns.

incentives. Following the November 2023 revision of theSeventh Medium-Term Management Plan, necessary changes
Remuneration Committee (details on page 45).

Directors and the Nomination Committee, JSF’s approach toprevious fiscal year. In addition, we implemented ¥3.0 billion

as short-term incentives and share remuneration as long-term

to internal talent development with a view to the selection ofmanagement executives, have been disclosed (details on
page 43). In addition, regarding succession planning for theup in dialogue with shareholders in FY2022 were initiatives toenhance corporate value and capital efficiency, and their results;financial market infrastructure overseas. In addition, as part ofour promotion of academic research activities, through an
industry-academia alliance we conducted demonstration tests
with the University of Tokyo to determine whether decentralized
ledger (blockchain) technology developed through joint
research could be applied to securities finance transactions,

To Our Stakeholders

the officer nomination process and initiatives in governance;
and information disclosure. The insights gained from

Going forward, we ask for your understanding and support forshareholders were discussed by the Board of Directors, after

our ongoing efforts to increase corporate value in the medium

which the board took action on insights that it determined theand long term with our public role in mind, as well as for our

Company should incorporate (details on pages 46–47).

measures to further strengthen corporate governance and our

The status of dialogue with shareholders is promptly

initiatives for sustainability.

reported to the Board of Directors after each such opportunity
so that the board and various committees can also take into

Shareholder Returns
(Yen)
50

account the feedback of shareholders in their discussions.
Dividends per share (Left axis)

Share buyback amount (Right axis)(Billions of yen)
3.5

3.3
3.0

3.0

45

2.3

40

JSF will actively pay+¥12

dividends during theperiod from FY2024

35

44
30
25

for a target payout ratio
of

0.5

30

26
20

through FY2025, aiming

70%

32

1.5
1.0

0

2019

2020

2021

2022

Dividends per share (Yen)

22

26

30

32

44

Share buyback amount(Billions of yen)

0.5

−

2.3

3.0

3.3

Total payout ratio (%)

71.0

60.1

97.6

97.6

101.0

2023 (forecast) (FY)
Note: F igure for dividends per share in
FY2023 is an estimate, and theshare buyback amount is the upper
limit of the buyback. The total
payout ratio is calculated using
the earnings estimates announced
on November 6, 2023.

Seventh Medium-Term Management Plan

Aiming for a total payout ratio of 100% on a cumulative basis through dividends andflexible implementation of share buybacks

Japan Securities Finance Co., Ltd.

2.0

0.5

22

Sixth Medium-Term Management Plan

24

2.5

Integrated Report 2023

Enhancement of Information Disclosure and Support for
Outside Directors
In FY2023, JSF continues to focus efforts on providing information
to shareholders and investors, clients, and other stakeholders.
Specifically, we are taking steps to enhance information tools,
such as making improvements to our corporate website. We
will maintain a corporate governance system suited to theenvironment we are in and our business portfolio, and work
toward sustainable corporate value improvement.
In FY2023, we continue to work on enhancing support foroutside directors, including two appointed in FY2022 and one
appointed in FY2023, with the assistance of the secretariat of
the Board of Directors, and strive to further improve theeffectiveness of the Board of Directors.

Initiatives for Sustainability
We also take a proactive approach to key issues related
to sustainability.
Developing and maintaining the infrastructure that forms
the foundation of socioeconomic activity is a key element inrealizing a sustainable society. It is also one of the Sustainable

Japan Securities Finance Co., Ltd.

Integrated Report 2023

25

Group Management Strategy

Corporate Strategy
Strategies and Initiatives in the Medium-Term Management Plan

Securities Financing Centered on
Loans for Margin Transactions

Key Points

Message from the Responsible Executive Officer

We will achieve growth by meeting the diverse transaction needsof the securities and financial sectors in Japan and overseas
Our core loans for margin transactions business, licensed under the Financial
Instruments and Exchange Act, serves as infrastructure for the securities market as asource of funds and stock certificates for the smooth implementation of standardized
margin transactions. Securities financing, which has been the core driver of our earnings
in recent years, collectively refers to five business areas including the lending of funds
backed by securities and the lending of securities. We are promoting securities
financing as one of our growth engines, and are also working to expand our services
by increasing the number of business partners we work with, including foreign financial
institutions, and by diversifying securities handled to include foreign stocks and foreign
government bonds. Recently, assets in the Asian region, including Japanese equities,
have been accepted as collateral in transactions. In these transactions, high-quality
qualified liquid assets (HQLA) such as Japanese yen and Japanese government bonds
are taking the place of other assets. As an institution specializing in transactions
related to stocks and bonds, we will continue to provide agile and flexible proposals
to meet the diverse transaction needs of the securities and financial sectors in Japanand overseas.

Morikuni Shimoyamada
Senior Managing Executive Officer
Responsible for
Margin Loan Department,
Institutional Sales Department,
Retail Business Department

Business Environment and Strengths

Securities financing

Securities Financing

26(Loans for Margin Transactions and Securities Financing)
Details

Loans fornegotiablemargintransactions

While loans for margin transactions provide funds andstocks necessary for the settlement of standardized
margin transactions, the business of loans for negotiablemargin transactions involves lending funds to securities
companies to enable them to purchase stocks innegotiable margin transactions.

Equity repo
transactions

We are responding to the diversification of financing
methods of securities companies through transactions
such as those in which stocks are used as collateral whenlending funds to securities companies (general loans),
and those in which cash is deposited in exchange forborrowing stock held by a securities company (equity
repo transactions).

Loans to retail

These are transactions that involve lending funds toindividual investors and others, using stock as collateral.
The main service in this business is COM-STOCK loans(securities-backed loans that can be transacted online).

General stock
lending

General stock lending is the business of procuring stockfrom institutional investors and others, and lending it tosecurities companies that mainly require it for trading,thus contributing to the stability of the settlement system.

Bond repo
and gensaki
transactions

This is the business of matching (brokering) various
financial institutions’ lending and borrowing needs, mainly
for Japanese government bond repo and gensaki
transactions (transactions in which bonds are exchanged
for cash).

Japan Securities Finance Co., Ltd.

Recent Initiatives and Strategies in
the Seventh Medium-Term Management Plan
Main Recent Initiatives· Began providing data on loans for margin transactions on
Nasdaq Data Link
Information on margin transactions and loans for margintransactions is key for understanding trends in the JapaneseOperating Revenue

Service

Integrated Report 2023

Business Environment and Recognized Issues
Stock-related businesses, such as loans for margin transactions
and general stock lending, are prone to fluctuations in performancedue to stock market conditions. Still, demand for stock lendingtransactions has been increasing due to the brisk pace ofstock market trading since the second half of FY2022. In
terms of transaction needs, in addition to conventional
covering of short sales, there has been a trend towardborrowing Japanese equities for use as collateral. Furthermore,
the balance of equity repo transactions continues its uptrend inline with the growing purchases of Japanese stocks by foreign
financial institutions and others.
In the bond market, the balance of supply and demand
for Japanese government bonds is tightening amid the Bankof Japan’s increased purchases of government bonds andexpected policy changes as interest rates continue to rise due
to monetary tightening policies in Western nations. Attention
is also focusing further on the use of HQLA such as Japanese
government bonds as collateral for various financialtransactions. As a result of this growing demand for Japanese
government bonds and other securities among domestic andoverseas financial institutions, the market balance of bondrepo and gensaki transactions remains high.
We will continue to expand securities financing by making
the most of our high credit rating (creditworthiness) backed bysolid equity capital and the expertise we have cultivated infinancial and securities-related businesses.

(Millions of yen)

25,000stock market, especially individual investor trading trends.
One of JSF’s businesses is the provision of data on loans for
margin transactions. As part of this business, we have begun
providing data on outstanding balances of loans for margintransactions and stock loans and the premium charge rate foreach stock issue through Nasdaq Data Link.
· Improved merchantability of loans to retail
Formerly, documents for new loan contracts had to be sent by
mail. Now, the application process can be completed on JSF’s
COM-STOCK LOANS website, improving the merchantabilityof our loans. In addition, efforts to acquire new clients andreview eligible collateral resulted in an increase in the loanbalance in FY2022.
Strategies in the Seventh Medium-Term Management Plan

· Enhance the loans for margin transactions businessIn addition to ensuring the stable operation of the loans for
margin transactions business by appropriately responding tochanges in the stock market environment in ways such as
expanding the number of loanable stock issues and steppingup the procurement of stock certificates, we will review measures
to promote the use of loans for margin transactions by accurately
grasping the trading requirements of market participants.
· Expand and enhance securities financing
We will continue working to expand our client base for securities
financing. To increase the number of securities borrowers, wewill actively attend international conferences and other events
to cultivate new business with foreign financial institutions
and others. To increase bond procurement sources, we will
work to strengthen relationships and expand transactions with
regional financial institutions and others. With respect to equity
repo transactions, we will continue to flexibly respond to clientneeds, enhancing our commercial appeal and improving
convenience in transactions in various ways, including diversifying
types of collateral accepted and currencies handled.

21,976Highlights

20,00015,391

15,00012,517

10,000

9,661
7,724

12,36911,359

8,849

8,003
6,118

5,000

0
2018

2019

Loans for margin transactions

2020

2021

Securities financing

2022

(FY)

Attending International Conferences(Securities Financing Group)
JSF actively helps domestic and overseas clients meet theirsecurities financing-related needs. As part of this support, we
actively participate in international securities financeconferences held in Europe, North America and Asia byorganizations such as the International Securities Lending
Association (ISLA) and Pan-Asia Securities Lending Association(PASLA). At these conferences, we work to strengthen
relationships with financial institutions based in these regions
and to develop new clients.
Conferences like these also serve as a valuable training
ground for our junior employees, allowing them to gather

knowledge on trends in overseas financial markets and thelatest technologies, which they can share with theircolleagues. In 2023, the PASLA conference was held in Tokyo,
with more than 20 JSF employees participating in meetings
with clients. We believe
this has contributed tostrengthening our
relationships with clientsand raising JSF’s namerecognition.

Japan Securities Finance Co., Ltd.

Integrated Report 2023

27

Group Management Strategy

Securities Financing Centered on Loans for Margin Transactions

History of Securities Financing
The performance of our licensed loans for margin transactions
business is greatly affected by stock market conditions and thebalance of standardized margin transactions. As we must
maintain stable infrastructure functions for the securities andfinancial markets even during market downturns, we have beenworking to ensure our financial soundness by diversifying ourrevenue sources beyond loans for margin transactions.
Specifically, we leverage the expertise in handling securities
and funds that we have cultivated in our original business ofloans for margin transactions. Securities financing itself consistsof five businesses—bond repo and gensaki transactions, equity
repo transactions, general stock lending, loans for negotiable

Evolution of Securities Financing

margin transactions, and loans to retail—and has grown tobecome a mainstay of our earnings in recent years.
Particularly with regard to bond repo, gensaki and equity
repo transactions, JSF has grown its business with non-residents
of Japan since the 2010s through participation in overseas
conferences, and by diversifying its transaction schemes by
accepting foreign securities as collateral and utilizing derivatives
such as total return swaps (TRSs). These efforts have resulted
in a steady uptrend in transaction balances. In this section,
we present specific initiatives and risk management for bondrepo, gensaki and equity repo transactions.

See pages 12–13 for details on composition of operating revenue.

Early 2010s
Established to complement the loans
for margin transactions business

Bond Repo and Gensaki Transactions
Bond repo and gensaki transactions mainly involve theexchange of Japanese government bonds for cash. In recent
years, there has been an increase in transactions in which thesebonds are procured from institutional investors in Japan andlent to overseas financial institutions and hedge funds. Factors
driving this increase include the globalization of Japan’s bondmarket due to the increased entry of foreign-affiliated financial
institutions, and the significant increase in the ratio of overseas
financial institutions in the repo market due to increased demandfor collateral to reduce settlement risk and for HQLA to comply
with financial regulations. Amid these circumstances, transactions
now include the exchange of equities for government bonds,
not only securities for cash.
Domestic institutional investors, including regional financial
institutions, have investment needs with respect to the Japanese
government bonds they hold, but directly lending those bonds
to overseas entities such as financial institutions involves thesignificant burden of establishing business relationships, including
creating credit lines and handling international contracts. We
are in a unique position in that we can leverage our accumulated
expertise in international contracts and cross-border transactions
to serve as an intermediary between the investment needs ofdomestic institutional investors and the procurement needs ofoverseas financial institutions from a relatively neutral standpoint.
Going forward, we will continue to increase bond repo andgensaki transactions both domestically and internationally.

Outstanding Bond Repo Transaction Balance(Billions of yen)

12,00010,000
8,000
6,000
4,000
2,000
0
2015 2016 2017 2018 2019 2020 2021 2022 (FY)
Late 2010s

2020s· Bond repo needs increased with

· Increased transactions with overseas

the Bank of Japan’s adoption ofa negative interest rate policy
in January 2016
· Number of clients increased due tosuccessful cultivation of new clientsin Japan· Repo transactions (lending of Japanese
government bonds with equities
and other securities as collateral)
using tri-party services increased
amid growing demand for collateralclients (foreign banks and hedge
funds) and diversified transactions· Supply-demand balance forJapanese government bonds has
tightened amid the Bank of Japan’s
increased purchases of these bondsand expectations of policy changes

Equity Repo Transactions
2020s
Grew into a mainstay revenue source for JSF· Promoted the use of derivatives through diversification oftransaction schemes, etc.

· A neutral position where JSF does not compete withclients (banks, securities companies, insurance companies)· Credit ratings based on the stability of the earnings baseand capital adequacy ratio

Late 2010s
Enhanced internal systems· Carried out overseas promotions (Participated in international

financial and securities conferences and utilized industry media
advertising, etc.)· Utilized tri-party repo transactions (Diversified securities handled
through more efficient collateral management, etc.)

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In order to meet the diverse needs of our domestic andoverseas clients for purposes including fund procurement
and fund management mainly using domestic and overseas
equities, we are increasing the number of contract-basedtransactions (such as stock loan agreements, Global Master
Securities Lending Agreements (GMSLAs), TRSs, and loan
agreements). Amid the recent trend toward stronger corporate
governance, market expectations for awareness of the cost ofequity in management has led to widespread purchases ofJapanese stocks by overseas financial institutions and otherinvestors. Against this backdrop, equity repo transactions forfunding purposes have increased, and our transaction balancehas been trending upward.
In addition, we are actively meeting the needs of overseas
financial institutions for funding in Japanese yen collateralizedby Asian equities. Going forward, we will continue to leverage
our neutral position, high credit ratings and accumulatedtransaction expertise to flexibly meet the needs of our clientsin ways such as diversifying the types of collateral acceptedand currencies handled.

Outstanding Equity Repo Transaction Balance(Billions of yen)

1,200
1,000
800
600
400
200
0
2015 2016 2017 2018 2019 2020 2021 2022 (FY)
Late 2010s

2020s

·N
 eeds for funding in Japanese yen
temporarily decreased due to the
Bank of Japan’s adoption of anegative interest rate policy·U sing tri-party services to enablefunding in Japanese yen collateralizedby Asian equities·B egan equity repo transactions
collateralized by government bonds
or U.S. dollars· Launch of TRS trading withJapanese government bonds as
eligible securities· Increased equity repo transactions
in which foreign financial institutions
purchase Japanese equities forfunding purposes

Japan Securities Finance Co., Ltd.

Integrated Report 2023

29

Group Management Strategy

Securities Financing Centered on Loans for Margin Transactions

Expanding Overseas Transactions through Participation in International Conferences
and Other Events
For JSF, international conferences provide a valuable point ofcontact with potential new clients. We have been actively
participating in international conferences since the PASLA
conference in Taiwan in 2012, and have expanded our scopefrom Asia to include Europe and the United States, participating
for the first time in the ISLA conference in Europe in 2018 andthe RMA conference in North America in 2019.

RMA3
ISLA1/GFF4

PASLA2

Risk Management for Securities Financing
Within securities financing, bond repo and gensaki transactions
account for large transaction lots, and their balances haveincreased significantly in line with the growth of the business.
This tends to inflate the balance sheets. Following here
is an explanation of the structure and risk management inthis business.
Bond repo and gensaki transactions are brokeragetransactions that match the needs of lender and borrower.
As a result, on the balance sheets both assets (cash collateralfor securities borrowed and securities purchased under resaleagreements) and liabilities (cash collateral received for securities
lent and securities sold under repurchase agreements) expand,as shown in (1) below. As of March 31, 2023, the balance
sheets had expanded significantly as the balance of bondrepo and gensaki transactions reached a record high level.
However, we reduce net exposure through a series of measures,
including receiving and paying cash equivalent to the market
value of the bonds as collateral for the bonds involved inthese transactions, marking the bonds to market during thetransaction period, and executing margin calls (receiving/
paying the difference between the cash collateral and themarket value of the bonds) as appropriate (see (2) below). In
addition, most of our clients are eligible for debt assumption
by financial institutions with relatively high credit ratings orby the Japanese Securities Clearing Corporation (JSCC).
These risk controls have helped limit increases in net
exposure and credit risk even as the balance sheets andtransaction balances have grown.

(Billions of yen)March 31,2023
Total assets

14,056.2

Cash anddeposits

1,598.2

Operatingloans

1. International Securities Lending Association
Industry association representing the common interests of
securities lending and financing market participants acrossEurope, the Middle East and Africa (established in 1989)

3. Risk Management Association
Industry association dedicated to research and education
on various regulatory responses and topics in the financial
services industry (established in 1914)

2. Pan Asia Securities Lending Association
APAC market equivalent to ISLA (established in 1995)

4. Global Funding and Financing
International conference on securities finance, organizedby Clearstream

When attending conferences, we meet with a diverse groupof clients based outside Japan, including securities firms,
banks, tri-party agents and other financial institutions, aswell as stock exchanges, platform operators and magazinesand other media outlets based in various countries. Thesemeetings enable us to acquire information about the latest

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technologies and overseas market trends and regulations in
the finance sector, which we then share within our organization.
In addition, the number of new transactions concluded has
increased as a result of our participation in overseas
conferences, which has contributed to the diversificationof our revenue.

(Billions of yen)March 31,2023

Details
Total liabilities

13,920.4

Borrowings

325.7

Bank of Japan current
account

Outstanding balances ofmargin loans, negotiable
955.5 margin transactions, bondand general loans, and loans
to trust banks

Securities
purchased
under resaleagreements

3,561.4

Cashcollateralprovided for
securities
borrowed

Collateral deposited (for6,669.8 bond repo and equity repo
transactions, etc.)(1)
Entered inboth assets
andliabilities

Entered inboth assets
andliabilities

The balance of transactions in other securities financing,such as equity repo transactions, is also on an uptrend. In equityrelated transactions, JSF applies the same risk control measures
as for bond repo and gensaki transactions, and also sets
appropriate haircuts (value markdowns) based on the volatility
and market liquidity of the equity involved in the transactions
to limit the increase in exposure.

Call money

Details

Bank of Japan market
operation bank loans

2,190.4(2)
JSF conducts daily
mark-to-market value
adjustments (receipt andpayment of the difference
between the market
value and cash collateral),which limits exposure

Exposure

Securities
sold under
repurchaseagreements

4,781.8

Cashcollateral
received for
securities lent

Cash received as collateral
5,073.7 (for bond repo transactions,etc.)(Marketvalue ofbonds)(Cashcollateral)As with other securities finance businesses, such as loans
for margin transactions, securities financing is managed within
an integrated risk management framework by measuring theamount of credit risk on a daily basis and keeping it within thelimit for risk capital set based on JSF’s financial strength. In
addition, we monitor the counterparty exposure for each client
on a daily basis to ensure that exposure in times of stress iswithin a certain limit, thereby preventing excessive exposure
for specific clients.

Japan Securities Finance Co., Ltd.

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31

Group Management Strategy

Corporate Strategy

Net assets ¥27.9 billion

JSF Trust and Banking Co., Ltd.

Balance of trust assets ¥3,881.4 billion
Number of employees 42(As of March 31, 2023)

Business Description and Policy
JSF Trust and Banking Co., Ltd. was established in 1998 amid financial system
reforms known as the “Japanese Big Bang.” A wholly owned subsidiary of JSF, it
aims to contribute to the development of financial and capital markets as the JSF
Group’s trust business. Since its establishment, JSF Trust and Banking has beenenhancing and expanding its investment service systems and evolving its financial
technologies to meet needs that become more diverse year by year. Throughthese efforts, it has built, deepened and enhanced a proprietary business model
for its custodial trust banking business that includes preservation trusts forsecurities companies and other financial instruments companies.

Toshihiro Oritate
President
JSF Trust and Banking Co., Ltd.

Strategies and Initiatives in the Medium-Term Management Plan
One of the main management goals of the Sixth MediumTerm Management Plan (FY2020–FY2022) was further evolutionof custodial trust services in response to market developments
and technological innovations. Over the plan period, in thearea of preservation trusts, our core product, regulatory
authorities introduced a series of systemic enhancements
for crypto asset deposits and crowdfunding payments withinvestor protection. In response, we worked to build a new
business base by establishing a network of major dealers
and related organizations, which yielded reasonable results.
We also worked to address growing investment needs inour asset-backed loan (ABL) trust business, where we holdfunds managed by institutional investors. By enhancing ourtrusteeship system, we successfully increased the trust balance.
As a result, the number of JSF Trust and Banking trustees
has steadily increased. The balance of trust assets increased
from ¥2.2 trillion as of March 31, 2020 to ¥3.8 trillion as ofMarch 31, 2023, and JSF’s trust fees have increased for 11
consecutive years.
In the Seventh Medium-Term Management Plan (FY2023–
FY2025), which began on April 1, 2023, the custodial trust
business continues to serve as a core business. However,market trends indicate that new business needs are emerging
due to the combination of systemic enhancements in thefinancial and capital markets and the advancement of digitaltransformation. As a result of its activities to date, JSF Trustand Banking is gaining recognition in the marketplace, andaccurately addressing these new needs will be an importanttask going forward.
During the plan period, in the banking business we willcontinue to expand credit services in a manner consistent
with the Group’s philosophy and manage securities
appropriately based on market trends that are expected tochange, while conducting adequate risk management.

Basic Policy in the Seventh Medium-Term Management Plan (FY2023–FY2025)
1. In trust operations, we will further strengthen our transaction network for various types of preservation trusts and custodial trusts,
such as ABL trusts, to ensure a self-driven mechanism for expansion, and clearly establish the trust business as one of the JSF
Group’s core businesses.
2. In loan services, we will focus on providing fund management support to the JSF Group’s clients and meeting the funding needs ofblue-chip companies in capital markets, while also strengthening our transaction network from a credit operations standpoint.

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3. We will position treasury services as an important part of efforts to enhance corporate value, and strive to generate stable earnings
under appropriate risk management.
4. We will create strong internal control and governance, achieve smooth development and operation of the core systems that
support it, and enhance human resources.

Strengths and Opportunities
Our strengths are our neutrality as an important member of the JSF
Group, our ability to make proposals and our agility based on our
expertise in the custodial trust business and our experience and trackrecord in this business since our founding, as well as our meticulous
administrative support capabilities. The system-side measures connectedto these strengths are also important points. In addition to the key
core system upgrades in the Sixth Medium-Term Management Plan(banking account system upgrade) and Seventh Medium-Term
Management Plan (trust account system upgrade), we will also build astable and efficient business management system and improve
productivity in terms of system support, including the use of RPA andother technologies in peripheral operations, with the aim of enhancing
services to trustees and improving our corporate value.
Another of our strengths is our collaboration with JSF, our parent
company. In the Sixth Medium-Term Management Plan, we promoted
collaboration in the areas of sales, risk management and operational
management, while striving to enhance not only our own but also theentire Group’s human resources through systematic personnel
exchanges. In the Seventh Medium-Term Management Plan, we will
strive to strengthen this kind of collaboration in a way that leads tothe mutual enhancement of the operational management capabilities
and human resources of both companies.

Balance of Trust Assets(Billions of yen)
4,000

3,881.4

3,000
2,000
1,000
0
2019

2020

2021

2022

2023
(As of March 31)

Ordinary Profit(Millions of yen)
1,600

1,415

1,200
800
400
0

Nihon Building Co., Ltd.

2018

2019

2020

2021

2022 (FY)Net assets ¥6.3 billion
Number of employees 15(As of March 31, 2023)

Business Description and Basic Policy
A wholly owned subsidiary of JSF, Nihon Building Co., Ltd. was established in 1958
as the JSF Group’s real estate leasing company. Nihon Building is tasked with
providing suitable, comfortable offices and various facilities to a range of clients,
including those in the securities and financial sectors.
In addition to working for the Group, such as managing the JSF head officebuilding, and steadily promoting the leasing business for buildings owned by theGroup mainly in the NihonbashiOrdinary Profit
Kayabacho district, Nihon(Millions of yen)
Building will continue to improve
800
651
its services in cooperation with600
parent company JSF, while
responding to changes in the400
business environment, including200
the redevelopment projects
under way in the Nihonbashi and
0
2018
2019
2020
2021
2022 (FY)
Kabutocho districts.

Kazuhiro Maeda
President
Nihon Building Co., Ltd.

Japan Securities Finance Co., Ltd.

Integrated Report 2023

33

Group Management Strategy

Corporate Strategy
Efforts toward Our Vision

Strengthening Human Resource Development

1. Recruitment

and Improving Engagement• We have created environments for autonomous career development that allow employees to maximize their individuality andstrengths and grow on their own through the performance of their work.

2. Training andcareer path

3. Evaluation andremuneration

By supporting the growth of each employee, we will improve ourcorporate vitality and organizational transformation capabilities.

4. Environment

Wataru Sato

JSF

Career Management (JSF/Employees)

Provide learning
opportunities
Provide tools

Set careergoals

Acquirespecialized
knowledge
and skills

Staff/Leaders
Managers
Specialists

Talent who have expertise in a certain field and are able to lead and contribute within the
Company by making use of their expertise
Individuals who take the initiative, set high goals and work independently to achieve thosegoals with the involvement of the people around them

Provide information
Clear indication ofnecessary humanresources
Career options

Career Stage

Upper management
Experts

Employees

Talent who are able to strive to gain a deeper and broader understanding of their assigned
work, and who are able to lead business transformation while enhancing their expertise in
their respective fields• We will promote the creation of a comfortable workplace environment that enables diverse work styles through the utilizationof telework.

Human Resource Development Program

Talent who respect diverse values and work together with other employees to enhance
corporate value

Our
Expectationsfor Human
Resources• We will create a workplace environment that ensures work-life balance by promoting the use of various leave systems to help
employees balance childcare or nursing care with their work.

• Visualization of human resource portfolio using IT• Support for medium- to long-term and autonomous career development based on career ownership• Wider range of self-development options through blended learning• Introduction of an in-house trainee system and mentor system• Enhanced experiences outside of the Company

Managing Executive Officer
Interim General Manager of
Human Resources Department• We respect the diverse values of our employees and will strive to provide opportunities and supportive environments so that diverse
individuals can maximize their individuality and strengths and grow on their own through the performance of their work.
• We will promote the creation of a comfortable work environment so that employees can engage in their work with peace of mind.
• We will improve our corporate vitality and organizational transformation capabilities and achieve more productive work styles byworking to improve employee engagement.

Talent who are able to accurately and steadily perform highly complex tasks, and contributeto maintaining the reliability of the Company’s infrastructure functions• We will assess our employees’ independent approach and actions toward their work, such as work reform, work efficiency
improvement, and voluntary efforts to achieve ambitious goals.

In the initiatives for achieving the vision within our human capital policy, we state that we will develop a new human resource
development program to support each employee’s autonomous career development and taking on challenges toward personal
growth. Through the following initiatives and other efforts, we aim to diversify our human resource portfolio and strengthen thefoundation of our human resource capabilities.

Our human capital policy serves as the basic policy for human resource development and other initiatives related to humancapital formation. The aim of this policy is to strengthen our human resource base, which is the source of corporate value
creation. It comprises our vision, criteria describing the ideal human resources that the Company wants to cultivate andstrengthen, and initiatives for achieving the vision. These initiatives will be formalized one by one in each area of recruitment,
training and career path, evaluation and remuneration, and environment.

Ideal• We will appropriately assess the contribution of employees’ performance of their work, including the degree to which they havedeveloped their abilities, demonstrated their performance, and fulfilled their expected roles.

Formulating Our Human Resource Development Program

Our Human Capital Policy

Vision• In order to support autonomous career development and taking on challenges, we have established new human resources
development programs, including revised and new training programs.
• We are building a stronger talent pool that can take a leading role in management strategy based on diversity, expertise,and independence.

Message from the Responsible Executive Officer

Since our business structure has long been centered on our licensed business ofloans for margin transactions, teamwork is a strength we have relied on to maintainthe accurate and steady execution of ongoing operations. However, there havebeen dramatic changes in our environment in recent years. To respond to thesechanges, we believe an important management issue is to create a workplaceenvironment in which diverse employees can fully demonstrate their individuality
and strengths, enthusiastically and autonomously explore and transform their work,and grow as they accumulate experience and achievements. Based on this belief,
the new human resource strategy that we formulated as part of the Seventh
Medium-Term Management Plan is a compilation of a policy (our human capital
policy) and measures (a human resource development program) for strengthening
our base of human resources, which are the source of corporate value creation.
Through the implementation and effective operation of specific measuresthat we formalize going forward, we will encourage our valued employees—ourhuman capital—to exercise initiative. Furthermore, by continuously supporting the
growth of each and every employee, we will improve engagement, thereby
improving Company-wide vitality and organizational transformation capabilities.

• In addition to the hiring of new graduates, we actively and continuously hire people with prior experience in order to secure adiverse workforce.

Career design
Life design

Proactive
learning

Provideopportunities tosucceed
Selection,
placement andutilization

Accumulate
experience

Evaluate
performance

Generate
results

On-the-job
training

Synergy

Synergy

Off-the-jobtraining
Rank-based training
Theme-specific training
Lectures and externalseminars

Practice in theworkplace

SynergySelf-development
Take onchallenges

Evaluation
Value
improvement

e-Learning
Distance learning courses
Qualification acquisition support system
Self-development support system

Talent who are able to take a leading role in management strategy from a broad perspective

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35

Group Management Strategy

Corporate Strategy
Diversity and Inclusion
Promoting Active Participation of Experienced Hires
In aiming for sustainable growth and improved corporate
value, we will flexibly recruit talent from a wide range ofindustries in accordance with the evolution of our business.
This will include people who can supply diversified financial
services, people who can help us enter new fields and people

Supporting Work-Life Balancewith specialized expertise, all regardless of nationality. We
also provide support for experienced personnel we hire sothat they can maximize their abilities in the workplace. We
provide them with opportunities to acquire knowledge bothin their specialized fields and in our main business areas.

As stated earlier, one of our initiatives for achieving the vision
is to help employees balance work with childcare or nursing
care. We do this by establishing various support systems, aswell as by informing employees of system changes in linewith legal or regulatory revisions and by establishing andoperating a system for providing individual consultation andsupport. For employees who apply for childcare or nursing
care leave, we conduct individual interviews to understandtheir various concerns, worries and needs, and then create aplan to facilitate their smooth return to the workplace after
taking leave.

Childcare and Nursing Care Support System• Childcare and nursing care leave of absence • Child and adult nursing care leave • Option of reduced working hours• Exemption from overtime work • Childbirth support leave • Subsidies for babysitting expenses• Creation of support plan and implementation of measures for returning to work after taking childcare leave• Support for returning to work and for continuing work
• Distributing pamphlets and raising awareness within the Company regarding in-house systems related to childcare and nursing care
• Distributing pamphlets about childbirth to expecting employees

Leveraging Previous Career Experienceand Finding Fulfillment at JSF
I started my career in the systems department of a megabank, followed by a position in a
consulting firm with strengths in IT, after which I joined JSF in August 2022.
My current responsibilities range from system implementation to information security
management and arranging LAN installation. Before joining JSF, I was on my guard for the
possibility that it was an exclusionary company not used to hiring experienced personnel.
Contrary to my fears, I received a warm, unreserved welcome. Even in my early days at JSF,
I received positive encouragement for my improvement proposals, as well as significant
discretionary authority, which helped me loosen up and settle into my work. I feel there is
still quite a lot I can do to help JSF, and I intend to continue making the best of myexperience and skills and engaging in my work free of cares.

2018

2019

2020

2021

2022

Women

Uran Okutomi

Number taking childcare leave (half-day, hourly)

10

10

8

13

25

Systems Planning Department

Number taking a childcare leave of absence

3

6

8

6

5

100%

100%

100%

100%

100%

10

9

10

13

13

Number taking childcare leave (half-day, hourly)

14

15

11

12

13

Number taking special leave (childbirth support leave)

7

10

6

7

3

100%

100%

100%

77%

100%

Rate of women returning to work after taking a childcare
leave of absence
Number on reduced working hours system (childcare)
MenRate of men taking special leave (childbirth support leave)

Promoting Active Participation of Women
In order to step up the active participation of women, we continue
to target a ratio of 40% or higher for women graduate
hires to total new graduate hires. In recent years, we havemaintained this ratio at 50% or higher. In addition, we
provide career development support such as various
training opportunities so that women can take on leadership

Employees(Number)

300
250
200
150
100

Managerial Positions
Men
Women
Ratio of women

33.2
31.5 31.2 32.4
30.1 31.0
82
78
79
77
78
77

179

roles at an early stage of their careers. We also fully
leverage the abilities and individuality of all of ouremployees by maintaining an environment in which they canbalance active participation in work while providing childcare
or nursing care. Through such measures, we plan to increase
the ratio of women in managerial positions.

174

172

170

163

165

(%)

(Number)

40

120
100
2

30

80

20

40
20

10
2018 2019 2020 2021 2022 2023

2

2

3

(%)

6
4

5

3.7

4

2.9

60

50
0

2

2.1
94

2.2
90

2.2
90

2
100

(Number)

10
8

104

1
0

0
2018 2019 2020 2021 2022 2023

Men
Women
Ratio of women

60

Rate of Paid Leave Taken

Overtime Hours Worked (Monthly Average per Employee)

50

(%)
80

(Hours)
20

60.0

3

4

0

80

60.0

50.0

2

(%)

66.7

6

3

2.1
93

encourages employees to reduce overtime work and takeleave at an appropriate frequency and duration. We also
pay attention to changes in employees’ work conditions,such as the psychological burden of work and stresscaused by the work environment. Employees who are
dealing with issues are identified and followed up withquickly to help improve conditions.

70

Through the use of telework and other means, we willachieve efficient and diverse work styles unrestricted bytime and place and promote the creation of a comfortable
work environment. Telework is available to all employees,
and accounts for about 40% of days worked per week on
average, post-pandemic.
In addition, JSF has set the rate of paid leave taken
and overtime hours worked as important indicators, and

New Graduate Hires

Men
Women
Ratio of women

3

2

2

3

50.0

40.0
3

30

2018 2019 2020 2021 2022 2023

(FY)

2

76.6
72.6

70
3

1

74.4

40

2
2

Promoting Work-Life Balance

2

66.4

68.9

15

60

10

50

5

2018

Japan Securities Finance Co., Ltd.

Integrated Report 2023

11.1

9.7

15.4

11.2

0

40

36

14.7

2019

2020

2021

2022

2018

2019

2020

Japan Securities Finance Co., Ltd.

2021

2022 (FY)

Integrated Report 2023

37