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, 2009

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2009.

Company name: Mitsubishi UFJ Securities Co., Ltd
URL:
http://www.sc.mufg.jp/
Representative: Fumiyuki Akikusa, President
Contact:
Hirofumi Noda, General Manager, Corporate Planning Division
TEL: (03) 6213-6900
Scheduled date of General Shareholders’ Meeting June 25, 2009
Scheduled date to file Securities Report
June 26, 2009
(Millions of yen with fractional amounts disregarded)

1.

Consolidated performance for the fiscal year 2008
(from April 1, 2008 to March 31, 2009)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen

Net operating revenue% Millions of yen% Millions of yen

FY2008465,850 (12.8)

229,972

FY2007534,093

243,612 (16.4)

22.6

Net income
Millions of yen%
FY2008(45,417)–
FY2007
8,137 (81.7)
Reference: Equity in earnings (losses) of affiliates

Operating income(5.6)

Net income per share

Ordinary income% Millions of yen

%

–

–

(28,547)

4,573 (92.9)
Diluted net
income per share

Yen(22,788)

11,016 (85.0)
Net income/equity

Yen

%
(6.9)
1.1

(63.34)
–
11.35
10.89
As of March 31, 2009: (4,697) million yen
As of March 31, 2008: 6,404 million yen(2) Consolidated financial position
Total assets
As of March 31, 2009
As of March 31, 2008
Reference: Equity

Net assets

Equity ratio

Net assets per share

Millions of yen
19,030,280

Millions of yen
657,438%
3.1

Yen
833.6019,190,293

771,5823.7

996.44As of March 31, 2009: 597,679 million yen

As of March 31, 2008:

714,434 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, 2009

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

109,213

As of March 31, 2008

(621,137)

16,615687,999

160,743

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 of “Key items forming the basisof preparation of consolidated financial statements”)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: Yes
Note:

(4)

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

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, 2009:
716,985,496 shares
As of March 31, 2008:
716,985,496 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2009:– shares
As of March 31, 2008:– sharesNote:

For more details, please refer to the section of “Per Share Information” on page 24.

2

(Reference) Overview of Non-consolidated performance
1. Non-consolidated performance for the fiscal year 2008
(from April 1, 2008 to March 31, 2009)(1) Operating results(Percentages indicate year-on-year changes.)
Operating revenue

Millions of yen

Net operating revenue% Millions of yen

FY2008

190,503 (25.3)

149,087 (29.9)

FY2007

255,024

212,690 (17.4)(7.7)

Net income

Operating income% Millions of yen

Net income per share(42,354)

Ordinary income% Millions of yen

%

–

–

(40,581)6,858 (89.7)

6,202 (90.7)

Diluted net
income per share

Millions of yen

%

Yen

Yen

FY2008(57,385)–(80.04)–

FY 2007(4,169)–(5.81)–

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

12,952,628
9,986,090(2) Financial position

As of March 31,
2009
As of March 31,
2008
Reference: Equity

Net assets per share

Net capital
regulation ratio

%

Yen

%

628,0844.8

876.01

353.7

690,4186.9

962.95299.4

As of March 31, 2009: 628,084 million yen

3

As of March 31, 2008:

690,418 million yen

[Consolidated Balance Sheets](Millions of yen)
As of March 31, 2008ASSETS
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, 2009

237,449
110,8107,238,431
6,427,856
810,574
26,61789,6195,189
93,64784,857

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

8,789

8,893

10,876,464

5,957,071

10,876,464

2,798,359－
1,321
169,669
1,234
530
34,942
8,479
10,137
95,441(99)

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

18,999,887

18,241,186

36,63816,387
12,254
7,996－－
42,11040,362
1,747
111,656
88,7893,568
17,051817
3,401(1,970)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)

190,406

789,094

19,190,293

19,030,280

(Millions of yen)
As of March 31, 2008

As of March 31, 2009

LIABILITIESCurrent liabilities
Trading products

5,013,062

7,881,704

4,337,853

2,213,678

675,208

5,668,025

28,75024,409Borrowings on margin transactions

19,77017,487

Cash received for securities lending on
margin transactions

8,980

6,922

10,107,493

7,443,137

9,656,598

3,237,182

450,895

4,205,954

86,79976,310

Trading securities and other
Derivatives
Margin transaction liabilities

Loans payable secured by securities
Cash received on debt credit transaction of
securities
Borrowings on Gensaki transactions
Deposits received
Guarantee deposits received

360,865

524,360

Short-term loans payable

1,507,264

996,304

Current portion of long-term loans payable

24,00058,653

Commercial papers

141,300

146,500

Current portion of bonds

19,36153,453

Income taxes payable

9,644

6,931

Provision for bonuses

17,073

9,194

Other current liabilities

91,629139,941

Total current liabilities

17,407,245

17,360,901

Bonds payable

616,518

650,370

Long-term loans payable

373,906

346,185

Deferred tax liabilities

5,728

2,055

Provision for retirement benefits

Noncurrent liabilities

11,315

9,168

Provision for directors’ retirement benefits

700

411

Other noncurrent liabilities

558

1,883

Total noncurrent liabilities

1,008,727

1,010,076

Reserve for securities transaction liabilities

2,738

－

Reserve for financial products transaction
liabilities

－

1,864

2,738

1,864

18,418,711

18,372,842

Reserves under the special laws

Total reserves under the special laws
Total liabilities

5

(Millions of yen)
As of March 31, 2008

As of March 31, 2009

NET ASSETS
Shareholders’ equity
Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

219,721

170,580

Total shareholders’ equity

702,188

653,047

Valuation difference on available-for-salesecurities

1,533(19,687)

Foreign currency translation adjustment

10,712(35,680)

Total valuation and translation adjustments

12,246(55,368)100

057,04659,758Valuation and translation adjustments

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

6

771,582

657,438

19,190,293

19,030,280

[Consolidated Statements of Income](Millions of yen)
For the fiscal year ended
March 31, 2008

For the fiscal year ended
March 31, 2009

(April 1, 2007 to March 31, 2008)(April 1, 2008 to March 31, 2009)

Commission received

125,194

168,124

Net trading income

125,508

81,718

1,790

402

0

4

Financial revenue

281,599

215,600

Total operating revenue

534,093

465,850

Financial expenses

290,480

235,878

Net operating revenue

243,612229,972

Trading related expenses

66,44786,392

Personal expenses

96,891

90,538Operating revenue

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

Selling, general and administrative expenses

Real estate expenses

26,45426,008

Office cost

24,111

24,206

Depreciation

16,03920,035

Taxes and dues

2,283

2,485

Provision of allowance for doubtful accounts
Other
Total selling, general and administrative
expenses
Operating income (loss)

－

2,288

6,812

6,565

239,038

258,520

4,573(28,547)－

14,704Non-operating income
Interest income
Equity in earnings of affiliates

6,404

－

Other

4,470

3,136

Total non-operating income

10,874

17,841－

2,053

Non-operating expenses
Loss on valuation of investment securities

－

4,697

Other

4,432

5,330

Total non-operating expenses

4,432

12,081

11,016(22,788)

Equity in losses of affiliates

Ordinary income (loss)

7

(Millions of yen)
For the fiscal year ended
March 31, 2008

For the fiscal year ended
March 31, 2009

(April 1, 2007 to March 31, 2008)(April 1, 2008 to March 31, 2009)

Gain on sales of investment securities

64

70

Reversal of allowance for doubtful accounts

40

－

7,743

7,446

－

874

7,848

8,391

14

24

Loss on valuation of investment securities

6,320

12,056

Provision of reserve for securities transaction
liabilities

453－

Provision for directors’ retirement benefits

222－

Extraordinary income

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

Loss on sales of noncurrent assets

1

23

Impairment loss

2,331

4,695

Total extraordinary loss

9,342

16,799

Income (loss) before income taxes and minority
interests

9,523(31,196)

Income taxes – current

4,822

11,777－

991

Income taxes – deferred(2,529)(6,580)

Income taxes

2,293

6,189

Minority interests in income (loss)

(907)

8,032

Net income (loss)

8,137(45,417)

Income taxes for prior periods

8[Consolidated Statements of Changes in Net Assets](Millions of yen)
For the fiscal year ended
March 31, 2008

For the fiscal year ended
March 31, 2009

(April 1, 2007 to March 31, 2008)(April 1, 2008 to March 31, 2009)

Shareholders' equity
Capital stock
Balance at end of previous period

65,51865,518––65,51865,518417,468

416,948

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
Disposal of treasury stock2–

Disposition of treasury stock by affiliates

4

–

(527)

–

Retirement of treasury stock
Share exchanges with parent company

0–

Total changes of items during the period

(520)

–

416,948

416,948

233,313219,721–240(12,907)(4,137)

8,137(45,417)–172(8,689)

–

(133)

–

(13,592)(49,381)219,721

170,580(9,108)

–

(132)

–

13

–

(0)

–

8

–

9,216

–

3

–

9,108

–

–

–

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
Dividends from surplus
Net income (loss)
Change of scope of consolidation
Retirement of treasury stock
Increase due to actuarial differences under U.K.
pension accounting of consolidated subsidiaries
Total changes of items during the period
Balance at end of current period
Treasury stock
Balance at end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Decrease (increase) in number of treasury stock due tochange in interests in affiliates
Disposition of treasury stock by affiliates
Retirement of treasury stock
Share exchanges with parent company
Total changes of items during the period
Balance at end of current period

9

(Millions of yen)
For the fiscal year ended
March 31, 2008

For the fiscal year ended
March 31, 2009

(April 1, 2007 to March 31, 2008)(April 1, 2008 to March 31, 2009)

Total shareholders' equity
Balance at end of previous period
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Change of scope of consolidation
Purchase of treasury stock

707,192

702,188–240(12,907)(4,137)

8,137(45,417)

–

172

(132)

–

15

–

Disposal of treasury stock
Decrease (increase) in number of treasury stock due tochange in interests in affiliates
Disposition of treasury stock by affiliates

(0)

–

12

–

Retirement of treasury stock––

Share exchanges with parent company
Increase due to actuarial differences under U.K.
pension accounting of consolidated subsidiaries
Total changes of items during the period

3

–

(133)

–

(5,003)(49,381)702,188

653,047

13,948

1,533

Net changes of items other than shareholders' equity(12,414)(21,221)

Total changes of items during the period(12,414)(21,221)

1,533(19,687)

13,14910,712

Balance at end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
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
Net changes of items other than shareholders' equity(2,437)(46,392)

Total changes of items during the period(2,437)(46,392)

10,712(35,680)

27,09812,246

Net changes of items other than shareholders' equity(14,852)(67,614)

Total changes of items during the period(14,852)(67,614)

12,246(55,368)

0100

Balance at end of current period
Total valuation and translation adjustments
Balance at end of previous period
Changes of items during the period

Balance at end of current period
Subscription rights to shares
Balance at end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity

100

(100)

Total changes of items during the period

100

(100)

Balance at end of current period

100

0

10

For the fiscal year ended
March 31, 2008
(April 1, 2007 to March 31, 2008)(Millions of yen)
For the fiscal year ended
March 31, 2009
(April 1, 2008 to March 31, 2009)

Minority interests
Balance at end of previous period

8,086

57,046

Net changes of items other than shareholders' equity

48,9592,711

Total changes of items during the period

48,9592,711

Balance at end of current period

57,04659,758

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

742,377

771,582–

240

Dividends from surplus(12,907)(4,137)

8,137(45,417)

–

172

(132)

–

15

–

Changes of items during the period

Total net assets

Net income (loss)
Change of scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Decrease (increase) in number of treasury stock due tochange in interests in affiliates
Disposition of treasury stock by affiliates

(0)

–

12

–

Retirement of treasury stock––

Share exchanges with parent company
Increase due to actuarial differences under U.K. pension
accounting of consolidated subsidiaries
Net changes of items other than shareholders' equity

3

–

(133)

–

34,208(65,003)

Total changes of items during the period

29,204(114,384)

Balance at end of current period

771,582

657,43811

[Consolidated Statements of Cash Flows]
For the fiscal year ended
March 31, 2008
(April 1, 2007 to March 31, 2008)(Millions of yen)
For the fiscal year ended
March 31, 2009
(April 1, 2008 to March 31, 2009)

Cash flows from operating activities
Income (loss) before income taxes and minority interests

9,523(31,196)

Depreciation and amortization

16,03920,035

(247)

(86)

(2,537)(2,146)

452

(288)

(67)

2,174

Amortization 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

–

(874)

(283,099)(231,870)

Interest expenses

290,524

236,557

Equity in losses (earnings) of affiliates(6,404)

4,697

Other, net

2,106

–

Provision of reserve for securities transaction liabilities

453–

Gain on sales of investment securities

(64)

–

Loss on sales of investment securities

14–

Loss (gain) on sales of investment securities

–

(46)

Adjustments of non-operating revenue and expense

Adjustments of extraordinary gain and loss

Gain on sales of noncurrent assets(7,743)–

Loss on sales of noncurrent assets

1–

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

Loss on valuation of investment securities

6,320

12,056

Impairment loss
Decrease (increase) in cash segregated as deposits forcustomers
Decrease (increase) in trading products-assets (liabilities)

2,331

4,695

5,214

33,179(509,714)(1,534,310)

Decrease (increase) in trade date accrual(24,667)(331,498)

Decrease/increase in assets/liabilities for margin transaction

57,43945,826

Decrease/increase in loans/borrowings secured by securities(231,791)

2,254,534

Decrease/increase in advance paid/deposits received

1,466(12,758)

Decrease (increase) in short-term guarantee deposits(69,675)(348,345)

Increase (decrease) in guarantee deposits received

166,036

220,279

Other, net(23,559)

42,159Subtotal(601,649)

375,349

Interest and dividends income received

277,906

233,141

Interest expenses paid

(271,151)(253,838)

Income taxes paid

(26,242)(7,744)

Net cash provided by (used in) operating activities(621,137)

346,90712

For the fiscal year ended
March 31, 2008
(April 1, 2007 to March 31, 2008)(Millions of yen)
For the fiscal year ended
March 31, 2009
(April 1, 2008 to March 31, 2009)

Cash flows from investing activities
29,259–Payments into time deposits–(2,667)

Proceeds from withdrawal of time deposits–

24,214(818)–

Purchase of short-term investment securities–(6,897)

Proceeds from sales and redemption of securities–

18,999(20,092)(101,367)

2,497

19,574Purchase of property, plant and equipment(13,288)(5,556)

Proceeds from sales of property, plant and equipment

12,5448,530

Purchase of intangible assets(27,003)(23,818)

Decrease (increase) in time deposits

Decrease (increase) in other securities

Purchase of investment securities
Proceeds from sales and redemption of investment securities

Decrease (increase) in call and other loans
Purchase of investments in subsidiaries resulting in change
in scope of consolidation
Other, net

(427)

(372)

33,287

–

658

1,156

Net cash provided by (used in) investing activities

16,615(68,203)

Net increase (decrease) in short-term loans payable

597,669(485,167)

Increase (decrease) in commercial papers(7,200)5,200

Cash flows from financing activities

Proceeds from long-term loans payable

157,41460,850

Repayment of long-term loans payable(191,200)(44,155)

Proceeds from issuance of bonds

275,542

239,568

Redemption of bonds(84,534)(64,269)

Redemption of convertible bonds(49,165)

–

(132)

–

Purchase of treasury stock15–(12,907)(4,137)

Payments of cash dividends to minority shareholders

(231)

(969)

Proceeds from stock issuance to minority shareholders

2,728

566

687,999(292,513)

Effect of exchange rate change on cash and cash equivalents(1,095)(37,484)

Net increase (decrease) in cash and cash equivalents

82,382(51,293)

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

78,361

160,743–(236)

160,743

109,213

Proceeds from disposal of treasury stock
Cash dividends paid

Net cash provided by (used in) financing activities

13[Events or conditions that may cast significant doubt on the premise of going concern]
Not applicable[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 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
Mitsubishi UFJ Securities (India) Private 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
Palace Capital Partners Co., Ltd.
Fukuin Co., Ltd(Addition)
MUS Principal Investments Co., Ltd.
The above company was newly consolidated upon its establishment.
Palace Capital Partners Co., Ltd.
The above company was newly consolidated upon the Company’s purchase of shares of thecompany.
(Exclusion)
Mitsubishi UFJ Wealth Management, Ltd.
The above company was excluded from the consolidated financial statements due to its
merger with the Company.
Palace Capital Partners A Co., Ltd.
The above company was excluded from the consolidated financial statements because

14Palace Capital Partners A Co., Ltd. merged its operating investee, FOODSNET Corporation.
The company was not treated as subsidiary since it was held by the Company’s
consolidated subsidiary engaged in the venture capital business in the form of shareholding
for incubation business purposes and was not intended to be placed under control.
Palace Capital Partners A Co., Ltd. changed its company name to FOODSNET Corporation
as of January 1, 2009.
（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 (previous name, Palace Capital Partners A Co., Ltd.)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 the companies were held in the form ofshareholding for incubation business purposes and were not intended to be placed undercontrol.
2. Application of equity method（1） Seventeen affiliates are under the equity method (two in previous fiscal year)
Names of principal equity-method affiliates
Works Capital Inc.
Marunouchi Capital Co., Ltd.
Sino Roosevelt Investment Partners Limited
KE Capital Partners Pte. Ltd.
Kim Eng Holdings Limited(Addition)
Marunouchi Capital Co., Ltd.
The above company was included in the scope of equity-method affiliates upon its
establishment.
KE Capital Partners Pte. Ltd.
The above company was included in the scope of equity-method affiliates upon the
Company’s purchase of shares of the company.
Kim Eng Holdings Limited and other 12 companies
The above 13 companies were included in the scope of equity-method affiliates upon the
Company’s additional purchase of shares of Kim Eng Holdings 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.

15

Centillion II Venture Capital Corporation(Reason for not treating as affiliates)
The companies were not treated as affiliates since they were held by the Company’s
consolidated subsidiaries engaged in the venture capital business in the form ofshareholding for incubation business purposes and were not intended to be placed undercontrol.
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
22 subsidiaries
End of February
1 subsidiary
End of March
6 subsidiaries
Of the consolidated subsidiaries whose financial closing date differs from the consolidated financial
closing date, 23 subsidiaries for which the difference in closing dates was three months or less were
accounted for based on the financial statements as of the financial closing date of each subsidiary.
However, necessary adjustments were made to the consolidated financial statements for any significant
transactions that took place between the end of the fiscal year of each subsidiary and the end of theconsolidated fiscal year. With regard to the one subsidiary for which the difference in closing dates
exceeded three months, the accounts were provisionally closed at the end of the consolidated fiscal year
for the preparation of financial statements.
4. Method of depreciation and amortization of major depreciable and amortizable assets(1) Method of depreciation of property, plant and equipment (excluding lease assets)
The Company applies the declining balance method. However, the straight-line method isapplied for buildings (excluding accessory equipment) acquired on or after April 1, 1998.
Consolidated subsidiaries primarily apply the declining balance method.
The useful lives of major items are as follows.
Buildings
5 to 50 years
Equipment 4 to 15 years(2) Method of amortization of intangible assets
The Company applies the straight-line method. For software used internally, the straight-line
method is applied based on the period of potential internal use by the company (5 years).
(3) Method of depreciation of lease assets
The Company applies the straight-line method over the lease period as the useful period andassuming the residual value is zero.
The accounting treatment for finance lease transactions deemed not involving the transfer ofownership whose transaction commenced on or before March 31, 2008, follows the same
method as for operating lease transactions.
5. Accounting standards for primary allowances
Provision for directors’ retirement benefits
In order to prepare for the payment of directors’ retirement benefits, certain consolidated
subsidiaries of the Company book the amount accrued as of the end of the fiscal year underreview based on internal rules.

16(Additional information)
The Company previously booked the amount of directors’ retirement benefits at the required
amount at the end of the fiscal year computed based on internal rules to prepare for the paymentof it. However, the directors’ retirement benefits system was abolished at the general meeting ofshareholders held on June 26, 2008 and the required amount at the time of abolition wasdetermined to pay upon retirement of directors and corporate auditors.
As a result, the amount equivalent to the provision for directors’ retirement benefits of 381
million yen at the time of abolition is transferred to “Other noncurrent liabilities” of noncurrent
liabilities.
6. Major hedge accounting(1) Hedge accounting
Fair value hedge that specifies currency swap transactions, foreign exchange contracts (foreignexchange swap transactions) and interest rate swaps as hedging instruments was adopted.
Exceptional accounting treatment was applied to interest rate swap transactions that meetnecessary criteria.
(2) Hedging instruments and hedged items
a. Exchange rate volatility risk(i) Hedging instruments: currency swap transactions and foreign exchange contracts(foreign exchange swap transactions)(ii)Hedged items: foreign currency denominated financial assets (other securities)
b. Interest rate volatility risk(i) Hedging instrument: interest rate swaps(ii)Hedged items: investment securities (other securities) and loans payable.
(3) Hedging policy
Currency swap transactions in single currency and 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 (other securities) 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 fromthe latest securities report (submitted on June 26, 2008).
[Changes in key items forming the basis of preparation of consolidated financial statements]
1. Accounting standard for lease transactions
Before the change, the accounting treatment for finance lease transactions not involving the transferof ownership followed mutatis mutandis the method for operating lease transactions, but now after
the application of the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13[Business Accounting Council Committee No. 1, June 17, 1993; revised March 30, 2007]) and the“Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16 [the JapaneseInstitute of Certified Public Accountants, Accounting Committee, January 18, 1994; revised March
30, 2007]) became possible starting from consolidated financial statements for the fiscal year underreview, we apply this standard and guidance from this fiscal year, and the accounting treatment for17

such transactions follows the method for ordinary purchase and sales transactions. Meanwhile,
depreciation of leased property pertaining to finance lease transactions not involving the transfer ofownership is computed on a straight-line method over the lease period as durable period, assuming
the residual value is zero.
The impact of this change on profit for this fiscal year is immaterial.
Also, the accounting treatment for finance lease transactions not involving the transfer ofownership whose transaction commenced before the first fiscal year in which the accounting
standard is applied, continues to follow mutatis mutandis the ordinary method for operating leasetransactions.
2. Practical solution on unification of accounting policies applied to foreign subsidiaries forconsolidated financial statements
From the fiscal year under review, the “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements” (PITF Practical Solution No.
18, May 17, 2006)is applied, and necessary amendments for consolidated financial statements aremade.
Due to this change, operating loss, ordinary loss and loss before income taxes and minority
interests each increased by 329 million yen.
The amount of impact that the application of the revised accounting standard at the beginning ofterm has on the prior period’s profit is added to retained earnings. The impact, however, isimmaterial.
3. Presentation of derivatives after offsetting
Before the change of presentation, financial assets and financial liabilities at fair value based onderivative transactions with the same counterparty with whom a legally binding master netting
contract is entered, were presented as the amount of difference arising from the offsetting between
both amounts. Our parent company, however, changed the presentation method to demonstrate thetotal amounts of these financial assets and financial liabilities from the fiscal year under review.
After the evaluation of this method from the perspective of proper presentation of credit risk in order
to conform our accounting policy to that of our parent company, we now believe that there is aweakening of reasonable grounds for presentation only for financial assets and financial liabilities ofderivatives at fair value after offsetting between both amounts and have changed the presentation
method to demonstrate the total amounts of these financial assets and financial liabilities inaccordance with principle.
As a result of this change, Derivatives (assets) and Derivatives (liabilities) each increased by¥4,349,791 million as compared to the case where the previous presentation method was adopted.
4. IAS 39 Financial Instruments: Recognition and Measurement
Commencing with the fiscal year under review, certain overseas subsidiaries apply IAS 39“Financial Instruments: Recognition and Measurement” revised October 13, 2008, and part of theamount previously posted in trading securities was transferred to available-for-sale securities andheld-to-maturity securities.
Due to this change, operating loss for this fiscal year increased by ¥17,263 million, and ordinary
loss and loss before income taxes and minority interests each decreased by ¥29,093 million.
[Changes in the Method of Presentation](Consolidated balance sheets)
The Company previously presented reverse repurchase agreements and repurchase agreements ofoverseas subsidiaries as “Cash collateral pledged for securities borrowed” and “Cash received on
debt credit transaction of securities.” However, the Company changed to a method whereby theabove are presented as “Loans on Gensaki transactions” and “Borrowings on Gensaki transactions.”

18

respectively effective as of the end of the fiscal year under review, after deliberating in an effort toconform the accounting policy to that of its parent company because the presentation as per contract
form is more explicit.
As of the end of the previous fiscal year, the reverse repurchase agreements and repurchaseagreements of overseas subsidiaries included in “Cash collateral pledged for securities borrowed”
and “Cash received on debt credit transaction of securities” was 6,821,297 million yen and 5,781,848
million yen, respectively.
(Consolidated statements of income)1. “Interest income,” previously included in “Other” of non-operating income, is separately classified
and presented effective the fiscal year under review as a result of increased accountability in the total
non-operating income. For the previous fiscal year, “Interest income” included in “Other” of nonoperating income was 66 million yen.
2. “Income taxes for prior period,” previously included in “Income tax- current”, is separately
classified and presented effective the fiscal year under review as a result of increased accountability.
For the previous fiscal year, “Income taxes for prior period” included in “Income tax- current” was 68
million yen.
(Consolidated statements of cash flows)
1. The item previously classified and presented up to the fiscal year ended March 31, 2008 as “Other,
net” (956 million yen for the fiscal year under review) of “Adjustments of non-operating revenue andexpense” under “Cash flows from operating activities” is presented as “Other, net” under “Cashflows from operating activities” effective the fiscal year under review in order to enhancecomparability of consolidated financial statements following the introduction of XBRL (eXtensible
Business Reporting Language) in EDINET (Electronic Disclosure for Investors’ NETwork).
2. The item previously classified and presented up to the fiscal year ended March 31, 2008 as “Gainon sales of investment securities” (a cash outflow of 70 million yen for the fiscal year under review)and “Loss on sales of investment securities” (24 million yen for the fiscal year under review) of“Adjustments of extraordinary gain and loss” under “Cash flows from operating activities” arepresented as “Loss (gain) on sales of investment securities” effective the fiscal year under review inorder to enhance comparability of consolidated financial statements following the introduction of
XBRL in EDINET.
3. The item previously classified and presented up to the fiscal year ended March 31, 2008 as “Gainon sales of noncurrent assets” (a cash outflow of 7,446 million yen for the fiscal year under review)and “Loss on sales of noncurrent assets” (23 million yen for the fiscal year under review) of“Adjustments of extraordinary gain and loss” under “Cash flows from operating activities” arepresented as “Loss (gain) on sales of noncurrent assets” effective the fiscal year under review inorder to enhance comparability of consolidated financial statements following the introduction of
XBRL in EDINET.
4. “Payments into time deposits” and “Proceeds from withdrawal of time deposits,” previously
included in “Decrease (increase) in time deposits” under “Cash flows from investing activities,” areseparately classified and presented effective the fiscal year under review as a result of increased
accountability of these items.
For the fiscal year ended March 31, 2008, “Payments into time deposits” and “Proceeds fromwithdrawal of time deposits” included in “Decrease (increase) in time deposits” under “Cash flows
from investing activities” was a cash outflow of 46,085 million yen and a cash inflow of 75,344
million yen, respectively.

19

5. “Purchase of short-term investment securities” and “Proceeds from sales and redemption of
securities,” previously included in “Decrease (increase) in other securities” under “Cash flows frominvesting activities,” are separately classified and presented effective the fiscal year under review asa result of increased accountability of these items.
For the fiscal year ended March 31, 2008, “Purchase of short-term investment securities” and“Proceeds from sales and redemption of securities” included in “Decrease (increase) in othersecurities” under “Cash flows from investing activities” was a cash outflow of 4,247 million yen anda cash inflow of 3,428 million yen, respectively.
6. Item previously presented as “Proceeds from sales of investment securities” under “Cash flows
from investing activities” is presented as “Proceeds from sales and redemption of investment
securities” effective the fiscal year under review for clear disclosure.

Additional information
Before the change, reserve for securities transaction liabilities was posted to provide for losses fromproblems with securities at the amount calculated as prescribed in Article 35 of the former “Cabinet
Office Ordinance on Securities Corporation” and pursuant to the provisions in Article 51 of theformer Securities and Exchange Law. However, following the enforcement of the Financial
Instruments and Exchange Law, reserve for financial products transaction liabilities is posted at theamount calculated as prescribed in Article 175 of the “Cabinet Office Ordinance Concerning
Financial Instruments Transaction Business” and pursuant to the provisions in Article 46-5 of the
Financial Instruments and Exchange Law from the fiscal year under review.
Due to this change, extraordinary income (reversal of reserve for financial products transaction
liabilities) for the fiscal year under review increased by ¥365 million, and loss before income taxes
decreased by ¥365 million, as compared to the case where the previous regulations were applied.
[Omission of disclosure]
Disclosure of items relating to business integration such as Lease transactions, Related-party
transaction, Tax effect accounting, Securities, Derivative transaction, Retirement benefits and Stock
options were omitted because they were considered immaterial information for the financial
statements.

20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 year ended March 31, 2008 (April 1, 2007 to March 31, 2008)
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

202,863

36,649

3,082

1,016

243,612–

243,612

11,228

7,140

514

4,694

23,577(23,577)–

214,091

43,790

3,597

5,710

267,190(23,577)

243,612

206,760

46,196

2,951

4,943

260,851(21,813)

239,0387,331(2,406)

645

767

6,338

(1,764)

4,573

9,986,079

9,690,077

62,554360,178

20,098,890(908,597)

19,190,293

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
North America ······························ U. S. A.

21

For the year ended March 31, 2009 (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.

3. Overseas sales (Net operating revenue)
For the year ended March 31, 2008 (April 1, 2007 to March 31, 2008)
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

OthersEurope30,812

4,404

35,217
243,612

12.6%

1.8%

14.5%

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

22For the year ended March 31, 2009 (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

23Per Share Information
For the year ended
March 31, 2008
(April 1, 2007 to March 31, 2008)
Net assets per share
Basic net income per share
Diluted net income per share

For the year ended
March 31, 2009
(April 1, 2008 to March 31, 2009)
Net assets per share

996.44 yen
11.35 yen
10.89 yen

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.

(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 year ended
For the year ended
March 31, 2009
March 31, 2008
(April 1, 2007 to March 31, 2008)(April 1, 2008 to March 31, 2009)
Basic net income or loss per share
Net income (loss)
8,137(45,417)
Net income not attributable to––common stockholder
Net income (loss) attributable to8,137(45,417)
common stock
Average number of common shares
717,004
716,985(Thousand shares)
Diluted net income per share
Adjustments of net income(280)–(Interest expenses (after tax equivalent5(–)
deduction))(Gain on redemption of bonds (after
(285)
( –)
tax equivalent deduction))
Increase in common stock
4,245–(Thousand shares)(Convertible bonds)
4,245
( –)
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
Palace Capital Partners A Co., Ltd.
Number of types
2
Number of units
2,580

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

24

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

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

FY2007

FY2008(From April 1, 2007
to March 31, 2008)(From April 1, 2008
to March 31, 2009)

43,642

29,911(13,730)

43,35829,311(14,047)

143

423

280

12,64718,753

6,106

5,012

6,893

1,880

Increase(Decrease)

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

7,635

11,8604,225

24,957

18,428(6,529)23,66817,937(5,730)

Other fees received

43,946

101,031

57,084

Beneficiary certificates
Total

21,47985,87764,398125,194

168,124

42,929(2) Breakdown by product(Millions of yen)
FY2007

FY2008(From April 1, 2007
to March 31, 2008)(From April 1, 2008
to March 31, 2009)

Increase(Decrease)

Stocks

50,001

36,598(13,403)

Bonds

9,734

13,2283,494

Beneficiary certificates

45,284

103,990

58,705

Other

20,17414,307(5,867)

Total

125,194

168,124

42,9292. Net trading income(Millions of yen)
FY2007

FY2008(From April 1, 2007
to March 31, 2008)(From April 1, 2008
to March 31, 2009)

Increase(Decrease)

Securities

13,927(37,763)

Bonds

135,274

138,843

3,568

Other

(23,693)(19,360)

4,332

Total

125,508

81,718(43,790)25(51,691)

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 othersfor 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 fromsecurities
Net trading income from bonds
Other net trading income
Net gain on private equity andother securities
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
Equity in losses of affiliates
Other
Ordinary income (loss)
Extraordinary income
Extraordinary loss
Income (loss) before income taxes
and minority interests
Income taxes-current
Income taxes-deferred
Minority interests in income (loss)
Net income (loss)

4Q of FY2007

1Q of FY2008

2Q of FY2008

3Q of FY2008(Millions of yen)
4Q of FY2008(January 1 toMarch 31, 2008)(April 1 toJune 30, 2008)(July 1 to
September 30, 2008)(October 1 to
December 31, 2008)(January 1 toMarch 31, 2009)

137,563
33,238
7,745
7,679
28

143,467
43,921
9,146
8,971
138

144,786
47,344
7,120
6,911
181

84,95539,751
7,844
7,730
42

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

4,840

1,909

3,374

6,871

6,598

1,030
3,810

44
1,865

1,194
2,180

3,554
3,316

2,099
4,498

8,120

4,486

8,074

3,158

2,708

8,002
12,531
5,434
20,4404,219
28,37823,86834,228

7,975
28,77524,23926,2293,090
21,877
19,393
1,209

2,652
21,99918,376
20,051(9,167)(597)(2,247)(13,034)(21,885)

61,433(31,825)(4,930)39,756

66,019(37,542)

32,387(18,143)

45,367(3,431)

(329)

1,379

3,257

(232)

(4,001)

084,214
91,63145,931

063,93975,93967,527–
67,954
68,26776,519044,22656,41928,536

4
39,48035,251
57,38959,94567,666

71,26060,964

58,62917,14022,004
6,643
7,099
4,625
237
2,195
(14,013)
2,683
1,577
1,106
1,541
–
1,541
(12,871)
7,522
7,540

22,152
26,272
6,266
5,839
4,683
848
1,603
(138)
1,586
23
1,563
1,895
–
1,895
(448)
891
1,421

22,932
25,911
7,023
6,717
5,093
481
3,100
5,258
1,537
(23)
1,561
5,578
4,647
930
1,218
7,414
13,273

18,67822,166
6,323
5,497
5,268
549
2,480
(32,428)
32,368–32,368957
463
493(1,016)17(2,668)22,62816,188
6,395
6,151
4,989
606
1,668
(1,239)(17,651)–(17,651)
3,650
(412)
4,063
(22,542)
66
4,772(12,890)(978)(4,639)1,669(27,247)(771)(1,673)(383)(10,062)

2,715
673
2,542
(6,909)3,666(6,907)
2,772(4,171)

2,206
(117)
1,987
(2,406)

4,181
(228)
729
(31,929)26