Analysis of Business Performance and Financial Results
Note: In the following section, all comparisons are with the previous fiscal year (fiscal 2010, ended March 31, 2011) unless stated otherwise.

During the reporting period ended March 31, 2011, the2.5 billion account units for ETFs (up 257 million accountJapanese economy began to show signs of improvement inunits), 13.7 million account units for REITs (up 3.1 million

personal consumption and corporate earnings. However,account units), and 700,000 account units for preferred

employment and wages remained depressed and the recov-equity investment of financial institutions established byery in consumption lacked strength, lending considerable

cooperative associations (unchanged from the end of theuncertainty to the outlook.

previous fiscal year). The total number of book-entry

In securities markets, despite the Nikkei Average reach-transfers handled decreased by 1.3 million to 83.4 million

ing a 2010 calendar year high of ¥11,339 in April amidtransactions, with increases in both account balances andexpectations of a recovery in corporate earnings, factors

number of transactions, and the impact of the reduction insuch as European financial instability, U.S. economic

commission rates, as noted above, meant that earnings in

uncertainty and the strong yen led to a fall in the market,

this business segment for the year declined ¥773 million, orwith the Nikkei Average dropping below ¥9,000 in mid

4.2%, to ¥17,562 million. During the period under review,August. It subsequently recovered to the ¥10,000 level inrefunds of ¥3,018 million were made on book-entry trans-November, supported by an easing of the yen and additional

fers and account management.

measures taken by the FOMC in the U.S., and sustained thisAfter deduction of this amount, earnings from the Book-level through the start of 2011. After the Great East Japan

entry Transfer System for Stocks, etc. decreased ¥1,049

Earthquake in March the Nikkei again fell through themillion, or 6.7%, to ¥14,544 million.

¥10,000 level as the extent of the disaster became apparent
and investors took flight from risk.
JASDEC’s operating revenues for fiscal 2010 declined¥1,246 million, or 5.9%, year on year, to ¥19,726 million,primarily due to reductions in the rate of commission
charged for book-entry transfers for stocks, etc. While operating expenses decreased ¥1,270 million, or 6.9%, to ¥17,068million, operating income increased ¥24 million, or 0.9%, to¥2,658 million. Income before income taxes increased ¥68million, or 2.6%, to ¥2,673 million. As a result, net income
for the period was ¥1,608 million, representing a year-Book-Entry Transfer for Commercial Paper
This business segment had a total of 488 corporate issuers
as of March 31, 2011, decreased by 2 issuers from the endof the previous fiscal year. Total transaction value was¥14.0 trillion, down ¥85.3 billion year on year, and the total
number of issuance, transfer and redemption transactions
handled was 283,202 transactions, a decrease of 21,457
transactions. Earnings from this business segment declined¥30 million, or 6.3%, to ¥457 million.

on-year increase of ¥291 million, or 22.2%. The earnings
performance of each of JASDEC’s business segments is asfollows.

Book-Entry Transfer System for Stocks, etc.
In this business, JASDEC was handling a total of 3,819 issues
as of March 31, 2011, representing 87 fewer issues than oneyear earlier. Account balances included 418.6 billion shares(up 5.6 billion shares compared to one year earlier), ¥1.1
trillion for bonds with share options (down ¥43.4 billion),

42

Japan Securities Depository Center, Inc. Annual Report 2011

Book-Entry Transfer System for Corporate Bonds
This business segment was handling a total of 67,788 issues
as of March 31, 2011, representing 3,414 fewer issues thanone year earlier. Total transaction value was ¥250.7 trillion, an increase of ¥4.5 trillion year on year, and the total
number of issuance, transfer and redemption transactions
handled was 505,677 transactions, an increase of 24,587
transactions. Earnings from this business segment declined¥8 million, or 0.6%, to ¥1,288 million.

Book-Entry Transfer System for Investment Trusts

Pre-Settlement Matching System

This business segment was handling a total of 6,575 issues

Earnings from this business segment declined ¥9 million,

as of March 31, 2011, representing 278 more issues than one

or 0.5%, to ¥2,001 million. During the year under review

year earlier, and comprising 3,885 publicly offered invest-

JASDEC made refunds on pre-settlement matching services

ment trusts and 2,690 privately placed investment trusts.

totaling ¥615 million. After deduction of this amount, earn-

The total account balance, based on principle value, wasings from this business segment decreased ¥138 million, or¥114.9 trillion, representing a ¥4.6 trillion increase from one

9.1%, to ¥1,386 million.

year earlier and comprising ¥83.1 trillion in publicly offeredinvestment trusts and ¥31.7 trillion in privately placedCustody Services for Foreign Stock Certificates, etc.

investment trusts. The total number of issuance, purchase

This business segment had an account balance of 89 million

and redemption transactions handled was 4,084,753 trans-foreign stocks, etc., excluding foreign covered warrants, asactions, an increase of 143,945 transactions. Earnings fromof March 31, 2011, an increase of 10 million compared tothis business segment increased ¥22.1 million, or 2.1%, to

one year earlier. The account balance for foreign covered¥1,062 million.

warrants was 76 million warrants, a decrease of 25 million

DVP Settlement Services for NETDs

compared to one year earlier. The total number of trans-This business segment handled a total of 20.4 million

transactions, 2,492 more than in the previous year. Earnings

NETD DVP settlements during the year ended March 31,

from this business segment declined ¥35 million, or 13.3%,

2011, a year-on year decrease of 0.3 million settlements, andto ¥228 million.

actions (including foreign covered warrants) was 152,407

earnings from this segment declined ¥13 million, or 1.5%,
to ¥943 million. During the year under review JDCC maderefunds on DVP settlement commissions totaling ¥182 million. After deduction of this amount, earnings from DVP
settlement services decreased ¥6 million, or 0.9%, to ¥760
million.

Financial results (consolidated)
Operating revenues

30,000Net income

Operating income(Millions of yen)

26,022(Millions of yen)

27,163

3,000
2,000

0
(FY ended)

2,605

2,673

3/2008 3/2009 3/2010 3/2011

189,283.71

182,082.62

154,949.18
156,934.33

1,547
2,617

Net assets(Millions of yen)

400,000

80,000300,000

60,000200,000

40,000100,000

20,00000(FY ended)

61,615
19,72620,0004,368(Yen)

4,000
20,973

10,000Total assets

Net income per share

1,333

1,317

1,608

1,000
0 3/2008 3/2009 3/2010 3/2011(FY ended)

54,83917,8973/200859,92518,8903/200957,454

19,8683/201021,1363/2011

Japan Securities Depository Center, Inc. Annual Report 201143