Analysis of Business Performance andFinancial Results
Fiscal year ended March 31, 2012 (Fiscal 2011)
In the following section, all comparisons are with the previous fiscal year unless stated otherwise.

Outline of Financial Results

42

Annual Report 2012

During the fiscal year ended March 31, 2012 (fiscal 2011),
the Japanese economy made gradual progress toward a
recovery, although conditions remained difficult because ofthe Great East Japan Earthquake. However, in addition toworries that economic performance in Japan would comeunder pressure from the European debt crisis, there werealso concerns about the impact of power shortages, the deflationary effects of the present situation and the possibility thatthe employment situation would worsen.
In securities markets, the Nikkei Stock Average fell
sharply after the earthquake but then staged a moderate rally
after the decline prompted buying by foreign investors.
Between April and June, the Nikkei hovered in the mid¥9,000 range. Statistics released in July, including the Industrial Production Index, confirmed that the post-earthquake
recovery was moving forward faster than anticipated by themarket. This news, together with firm trends in U.S. stock
prices, took the Nikkei to around the ¥10,000 level. InAugust, the Nikkei fell back to the mid-¥8,000 range andremained at that level until October, reflecting market
anxiety about a sharp correction in U.S. stock prices and acontinuing rise in the value of the yen. In late November, theNikkei hit a new low for the year, but it made consistent
gains between the start of the new year and March, after
firmer economic indicators and other factors prompted ageneral firming of U.S. stock prices. Another factor was adownward trend in the yen’s value. By the end of March theNikkei was above ¥10,200 and had reached its highest level
since the earthquake.
In the year ended March 31, 2012, operating revenues
decreased by ¥28,671 thousand, or 0.2%, year on year to¥19,698,237 thousand. Selling, general and administrative
expenses were reduced by ¥1,080,392 thousand, or 6.3%, to¥15,988,063 thousand. Operating income was ¥1,051,721
thousand, or 39.6%, higher at ¥3,710,173 thousand, while
ordinary income increased by ¥1,026,127 thousand, or
38.4%, to ¥3,699,661 thousand. There was an extraordinary
loss of ¥1,073,148 thousand relating mainly to partial changes to our basic policy on system replacement, with the resultthat net income was ¥130,652 thousand (8.1%) lower year
on year at ¥1,478,259 thousand.

Book-Entry Transfer System for
Stocks, etc.
In this business segment, the number of issues handled by
JASDEC as of March 31, 2012 was 3,762, a reduction of 57
compared with the total as of March 31, 2011. Accountbalances included 406.8 billion shares, a year-on-year declineof 11.7 billion shares. The balance of bonds with share options
stood at ¥959.7 billion, which was ¥208.3 billion lower year onyear. There were 2,339.25 million account units for ETFs andbeneficial rights of trust issuing beneficial certificates, such as
JDRs, a year-on-year decline of 224.46 million units. Thebalance of account units for REITs was 2.64 million higher
year on year at 16.38 million, and account units for preferred
equity investments of financial institutions established bycooperative associations were unchanged at 700,000. The total
number of new registrations, book-entry transfers, obliterations and other transactions processed was 1,982,733 below
the total for the previous reporting year at 81,641,204.
Revenues from this business segment were ¥1,058,222
thousand, or 6.0%, lower year on year at ¥16,504,195 thousand. This includes refunds of ¥1,928,000 thousand on bookentry transfer commissions and account management fees.
Revenues after the deduction of these refunds amounted to¥14,576,195 thousand, a year on year increase of ¥31,777
thousand, or 0.2%.

Book-Entry Transfer System forCommercial Paper
The number of corporate issuers using this system increasedby nine to 497 as of March 31, 2012. Account balances fell by¥418.7 billion to ¥13,614.5 billion. The total number ofunderwriting, transfer and redemption transactions handledincreased by 5,564 year on year to 288,766. As a result,revenues from this segment were ¥6,565 thousand, or 1.4%,
higher year on year at ¥463,673 thousand.

Book-Entry Transfer System for
Corporate Bonds

DVP Settlement Services for
Non-Exchange Transaction Deliveries (NETDs)

In this business segment, JASDEC was handling a total of60,701 issues as of March 31, 2012, a reduction of 7,087
issues compared with the position a year earlier. On a facevalue basis, the account balance increased by ¥2,365.2 billion
year on year to ¥252,439.1 billion as of March 31, 2012. The
total number of underwriting, transfer and redemption
transactions handled was 3,527 lower at 502,150. As a result,revenues from this business segment declined by ¥87,532
thousand, or 6.8%, to ¥1,201,016 thousand.

The number of NETD DVP settlements handled by JASDEC
during the year ended March 31, 2012 was 100,000 lower yearon year at 20.3 million. As a result, revenues from this segment
declined by ¥3,593 thousand, or 0.4%, to ¥939,531 thousand.

Pre-Settlement Matching System
Revenues from this segment increased by ¥23,577 thousand,or 1.2%, to ¥2,024,663 thousand in the year ended March 31,
2012. JASDEC pre-settlement matching fees totaling¥478,000 thousand, and revenues after the reduction of thatamount were ¥160,577 thousand, or 11.6%, higher at¥1,546,663 thousand.

Book-Entry Transfer System for
Investment Trusts

Custody Services for
Foreign Stock Certificates, etc.
As of March 31, 2012, there was an account balance of 88
million foreign stock certificates, etc., excluding foreign
covered warrants. There was no change from the level a yearearlier. The account balance for foreign covered warrants was
34 million warrants lower at 41 million. The total number ofbook-entry transfers, including foreign covered warrants,declined by 14,128 to 138,279. As a result, revenues from thisbusiness segment were ¥25,576 thousand, or 11.2%, lower
year on year at ¥203,190 thousand.

Financial Results (consolidated)
Operating revenues
Ordinary income(Millions of yen)
30,00027,163
20,973

19,726(Millions of yen)

(Yen)

(Millions of yen)

3,000

300,000

80,000154,949.18

19,69810,000

1,608
1,317

1,000

3/20092,605
3/20102,673
3/2011

61,615200,000

1,333

0(FY ended)

173,912.87
189,283.71

2,000 156,934.33

20,0002,617

Total assets
Net assets

Net income
Net income per share

1,478
100,000

3,699
3/2012

0 3/2009(FY ended)

3/20103/20113/2012 059,92560,00057,454

61,57440,00018,89019,86821,13622,27520,0000(FY ended)

3/20093/20103/20113/2012

43

Annual Report 2012

As of March 31, 2012, JASDEC was handling a total of 6,868
issues in this business segment, including 4,166 publicly
offered investment trusts and 2,702 privately placed investment trusts. The total represents an increase of 293 issues
compared with the position as March 31, 2011. On a principal value basis, the account balance as of March 31, 2012 was¥2,409.9 billion below the level a year earlier at ¥112,507.1
billion, consisting of ¥81,795.0 billion for publicly offeredinvestment trusts and ¥30,712.0 billion for privately placed
investment trusts. The number of related registrations,cancellations, transfers and other transactions handled by
JASDEC in the year ended March 31, 2012 increased by
116,322 year on year to 4,201,075. This is reflected in revenues for this segment, which increased by ¥2,200 thousand,or 0.2%, to ¥1,064,454 thousand.