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.

October 29, 2008

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2009.

Company name: Mitsubishi UFJ Securities Co., Ltd
URL:
http://www.sc.mufg.jp/
Representative: Fumiyuki Akikusa, President
Contact:
Masayasu Tsukada, General Manager, Corporate Planning Division
TEL: (03) 6213-6900(Millions of yen with fractional amounts disregarded)

1.

Consolidated performance for the second quarter of fiscal year 2008
(cumulative: from April 1, 2008 to September 30, 2008)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Millions of yen
First six months of
FY2008First six months of
FY2007

Net operating revenue

Ordinary income% Millions of yen% Millions of yen% Millions of yen%

288,254–

144,046

–

5,120

–

770

–

274,91553.4

150,98815.8

30,28337.3

33,825

14.6

Net income

First six months of
FY2008First six months of
FY2007

Operating income

Net income per share

Diluted net
income per share

Millions of yen

%

Yen

Yen

(11,081)–(15.46)–

25,799

41.1

35.98

35.17

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of September 30,
2008

20,752,495

754,3903.4

969.91

As of March 31, 2008

19,190,293

771,5823.7

996.44

Reference: Equity

As of September 30, 2008:

695,408 million yen

1

As of March 31, 2008:

714,434 million yen

2.

Matters on preparing the quarterly consolidated financial statements and others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
(2) Application of simplified accounting and particular accounting for preparing the quarterly
consolidated financial statements: None
(3) Changes in accounting policies, procedures, and methods of presentation for preparing the quarterly
consolidated financial statements (changes described in the section of “Changes in significant
matters forming the basis of preparing the quarterly 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 “1. Matters on preparing the quarterly consolidated financial
statements and others” of [Financial Statements] on page 3.

Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2008:
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 September 30, 2008:– shares
As of March 31, 2008:– sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
First six months of the fiscal year ending March 31, 2009:
716,985,496 sharesFirst six months of the fiscal year ended March 31, 2008:
717,023,130 shares* Other special matters
Commencing with the current fiscal year, the quarterly consolidated financial statements conformto the “Accounting Standard for Quarterly Financial Reporting” (ASBJ [Accounting Standards
Board of Japan] Statement No. 12) and the “Guidance on Accounting Standard for Quarterly
Financial Reporting” (ASBJ Guidance No. 14). They are also prepared in accordance with the“Cabinet Office Ordinance Concerning Financial Instruments Business” (Cabinet Office
Ordinance No. 52 of 2007) and "Rule Concerning Uniform Accounting Standards for Securities
Dealers" (Self-Regulatory Rule of Japan Securities Dealers Association, November 14, 1974) andpursuant to the provisions of the “Regulation for Quarterly Consolidated Financial Statements”
and Articles 61 and 82 thereof.

2

[Financial Statements]
1.

Matters on preparing the quarterly consolidated financial statements and others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation)
None(2) Application of simplified accounting and particular accounting for preparing the quarterly
consolidated financial statements
None(3) Changes in accounting policies, procedures, and methods of presentation for preparing thequarterly consolidated financial statementsa. Commencing with the current fiscal year, the quarterly consolidated financial statements conformto the “Accounting Standard for Quarterly Financial Reporting” (ASBJ [Accounting Standards
Board of Japan] Statement No. 12) and the “Guidance on Accounting Standard for Quarterly
Financial Reporting” (ASBJ Guidance No. 14). They are also prepared in accordance with the“Cabinet Office Ordinance Concerning Financial Instruments Business” (Cabinet Office
Ordinance No. 52 of 2007) and "Rule Concerning Uniform Accounting Standards for Securities
Dealers" (Self-Regulatory Rule of Japan Securities Dealers Association, November 14, 1974) andpursuant to the provisions of the “Regulation for Quarterly Consolidated Financial Statements”
and Articles 61 and 82 thereof.
b. Before the change, the accounting treatment for finance lease transactions not involving thetransfer of 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 [theJapanese Institute of Certified Public Accountants, Accounting Committee, January 18, 1994;
revised March 30, 2007]) became possible starting from quarterly consolidated financial
statements for the fiscal year beginning April 1, 2008 or later, we apply this standard andguidance from the first quarter of FY2008, and the accounting treatment for such transactions
follows the method for ordinary purchase and sales transactions. Meanwhile, depreciation ofleased property pertaining to finance lease transactions not involving the transfer of ownership 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 the first six months of FY2008 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.
c. From the first quarter of FY2008, the “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements” (PITF Practical Solution
No. 18, May 17, 2006), and necessary amendments for consolidated financial statements are
made.
There are no impacts of this change on profit for the first six months of FY2008.
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

d. 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 todemonstrate the total amounts of these financial assets and financial liabilities from the firstquarter of FY2008. 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 a weakening of reasonable grounds for presentation only
for financial assets and financial liabilities of derivatives at fair value after offsetting between
both amounts and have changed the presentation method to demonstrate the total amounts ofthese financial assets and financial liabilities in accordance with principle.
As a result of this change, derivatives (assets) and derivatives (liabilities) each increased by¥2,710,547 million as compared to the case where the previous presentation method was adopted.
(Additional information)a. Before the change, reserve for securities transaction liabilities was posted to provide for losses
from problems 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 the former Securities and Exchange Law. However, following the enforcement of the
Financial Instruments and Exchange Law, reserve for financial products transaction liabilities isposted at the amount calculated as prescribed in Article 175 of the “Cabinet Office OrdinanceConcerning Financial Instruments Transaction Business” and pursuant to the provisions in Article
46-5 of the Financial Instruments and Exchange Law from the first quarter of FY2008.
Due to this change, extraordinary income for the first six months of FY2008 (reversal of reservefor financial products transaction liabilities) increased by ¥214 million, and loss before income
taxes decreased by ¥214 million, as compared to the case where the previous regulations wereapplied.
b. The Company requested Lehman Brothers Japan Inc. to return share certificates with the market
value at 4,789 million yen (as of September 30, 2008) in accordance with Article 52, Paragraph 1of the Civil Rehabilitation Law (Right of Segregation). However, at present, the recognition of
the Company’s right of segregation is yet to be determined.
The above balance is included in the “Other current assets” under Current Assets.

4

2. Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of September 30, 2008

As of March 31, 2008
(Summary)

Cash and deposits

171,401

237,449

Cash segregated as deposits

94,227

110,810ASSETS
Current assets

Trading products

12,159,285

7,238,431

Trading securities and other

8,284,614

6,427,856

Derivatives

3,874,670

810,574–

26,617

Private equity and other securities

81,10589,619Margin transaction assets

93,03093,647Loans secured by securities

7,457,351

10,876,464

Short-term guarantee deposits

247,548

169,669

Short-term investment securities

28,94934,942

Income taxes receivable

1,383

8,479

204,380

113,854

(395)

( 99)

20,538,267

18,999,887

Property, plant and equipment

34,374

36,638Intangible assets

47,367

42,110Investments and other assets

132,486

111,656

Total noncurrent assets

214,227

190,406

20,752,495

19,190,293

Trade date accrual

Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets

Total assets

5

(Millions of yen)
As of September 30, 2008

As of March 31, 2008
(Summary)

7,224,293

5,013,062

Trading securities and other

3,629,079

4,337,853
675,208

LIABILITIESCurrent liabilities
Trading products
Derivatives

3,595,214

Trade date accrual

282,613–

Margin transaction liabilities

51,75728,750Loans payable secured by securities

8,502,366

10,107,493

Short-term loans payable

1,918,424

1,507,264

Current portion of long-term loans payable

63,49924,000Commercial papers

85,500141,300

Current portion of bonds

40,274

19,361

Income taxes payable

6,637

9,644

Other current liabilities

743,353

556,367

Total current liabilities

18,918,720

17,407,245

Bonds payable

723,600

616,518

Long-term loans payable

338,447

373,906

9,568

11,315327

700

Other noncurrent liabilities

5,576

6,286

Total noncurrent liabilities

1,077,520

1,008,727

Reserve for securities transaction liabilities

–

2,738

Reserve for financial products transaction
liabilities

1,864

–

Total reserves under the special laws

1,864

2,738

19,998,104

18,418,711

Noncurrent liabilities

Provision for retirement benefits
Provision for directors' retirement benefits

Reserves under the special laws

Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock

65,51865,518

Capital surplus

416,948

416,948

Retained earnings

204,743

219,721

Total shareholders' equity

687,211702,188

Valuation difference on available-for-salesecurities

4,825

1,533

Foreign currency translation adjustment

3,372

10,712

Total valuation and translation adjustments

8,197

12,246111

100

Minority interests

58,87057,046

Total net assets

754,390

771,582

20,752,495

19,190,293

Valuation and translation adjustments

Subscription rights to shares

Total liabilities and net assets

6

(2) Consolidated statement of income(Millions of yen)First six months of FY2008(From April 1, 2008
to September 30, 2008)
Operating revenue
Commission received

91,265

Net trading income

60,457

Net gain on private equity and other securities

4,637

Other net gain on goods trading

0

Financial revenue

131,893

Total operating revenue

288,254

Financial expenses

144,207

Net operating revenue

144,046

Selling, general and administrative expenses

138,926

Operating income

5,120

Non-operating income
Dividends income

1,307

Other

1,817

Total non-operating income

3,124

Non-operating expenses
Equity in losses of affiliates

4,647

Other

2,826

Total non-operating expenses

7,473

Ordinary income

770

Extraordinary income
Gain on sales of investment securities

61

Reversal of reserve for financial products
transaction liabilities

874

Gain on sales of noncurrent assets

7,370

Total extraordinary income

8,306

Extraordinary loss
Loss on sales of investment securities

1

Loss on valuation of investment securities

13,163

Impairment loss

1,530

Total extraordinary loss

14,695

Income (loss) before income taxes(5,618)

Income taxes-current

6,381

Income taxes-deferred(6,234)

Income taxes

147

Minority interests in income

5,315

Net income (loss)(11,081)7

Commencing with the current fiscal year, the quarterly consolidated financial statements conform to the“Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12) and the “Guidanceon Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance No. 14). They are also
prepared in accordance with the “Cabinet Office Ordinance Concerning Financial Instruments Business”(Cabinet Office Ordinance No. 52 of 2007) and "Rule Concerning Uniform Accounting Standards for
Securities Dealers" (Self-Regulatory Rule of Japan Securities Dealers Association, November 14, 1974)
and pursuant to the provisions of the “Regulation for Quarterly Consolidated Financial Statements” andArticles 61 and 82 thereof.
(3) Notes on premise of going concern
None(4) Notes on significant changes in the amount of shareholders’ equity
None

8Reference:
Financial statements for the second quarter of the fiscal year ended March 31, 2008
(Summary) Consolidated statement of income(Millions of yen)First six months of FY2007(From April 1, 2007
to September 30, 2007)
Operating revenue

274,915

Commission received

67,584

Net trading income

79,120Net gain on private equity and other securities

2,348

Other net gain on goods trading

0

Financial revenue

125,861

Financial expenses

123,926

Net operating revenue

150,988

Selling, general and administrative expenses

120,705

Trading related expenses

34,241

Personal expenses

51,284

Real estate expenses

13,207

Office cost

10,387

Depreciation

7,101

Taxes and dues

1,339

Other

3,143

Operating income

30,283Non-operating income

5,745

Equity in earnings of affiliates

3,108

Other

2,636

Non-operating expenses

2,203

Ordinary income

33,825Extraordinary income

316

Gain on sales of investment securities

59

Reversal of allowance for doubtful accounts

65

Gain on sales of noncurrent assets

191

Extraordinary loss

1,589

Loss on valuation of investment securities

229

Provision of reserve for securities transaction
liabilities

251

Provision for directors' retirement benefits

222

Loss on sales of noncurrent assets

0

Impairment loss

886

Income before income taxes

32,551

Income taxes-current

9,855

Income taxes-deferred(2,716)

Minority interests in income (loss)(386)

Net income

25,7999Reference: Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2009
1. Commission received(1) Breakdown by item
(Millions of yen)First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

25,733

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

16,266(9,467)43,642

25,591

15,883(9,708)43,358

76

319

243

143

6,629

5,284

(1,344)

12,647

3,311

1,238

(2,072)

5,012

3,317

4,045

728

7,635

14,486

12,560(1,925)

24,957

13,512

12,195(1,317)

23,66820,735

57,15436,41843,946

10,834

48,10837,273

21,47967,584

91,26523,680125,194First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

Stocks29,272

Bonds

Commission toconsignees
Stocks
Bonds
Underwriting anddistributioncommission
Stocks
Bonds
Flotation anddistribution fee
Beneficiary
certificates
Other fees received
Beneficiary
certificates
Total(2) Breakdown by product(Millions of yen)
FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

17,366(11,906)

50,001

4,716

5,043

326

9,734

24,41060,36535,95445,284

9,185

8,490

(694)

20,17467,584

91,26523,680125,194First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

Securities

9,384(2,844)

Bonds

55,150Other

14,585

Total

79,120Beneficiary
certificates
Other
Total

2. Net trading income(Millions of yen)10

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)(12,228)

13,92761,0885,937

135,274

2,213(12,371)(23,693)

60,457(18,663)

125,508

Quarterly trends in consolidated statements of income(Millions of yen)

Operating revenue
Commission received
Commission to consignees
Stocks
Bonds
Underwriting and distributioncommission
Stocks
Bonds
Flotation and distribution fee
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)

2Q of FY2007

3Q of FY2007

4Q of FY2007

1Q of FY2008

2Q of FY2008(July 1 to
September 30,
2007)(October 1 to
December 31,
2007)(January 1 toMarch 31, 2008)(April 1 to June30, 2008)(July 1 to
September 30,
2008)

138,578
29,79911,91911,83935

121,614
24,371
10,163
10,087
37

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

2,542

1,178

4,840

1,909

3,374

1,153
1,388
5,192
4,813
10,144
5,832
38,270

670
507
2,350
2,153
10,6795,209
25,948

1,030
3,810
8,120
8,002
12,531
5,434
20,440

44
1,865
4,486
4,219
28,37823,86834,228

1,194
2,180
8,074
7,975
28,77524,23926,2291,667

13,710(9,167)(597)(2,247)60,556(23,953)

18,690(6,452)

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

66,019(37,542)

347

(228)

(329)

1,379

3,257

0
70,161
68,501

071,52374,923084,214
91,631

063,93975,939–67,954
68,26770,077

46,69145,931

67,52776,51962,57458,38759,94567,666

71,26018,40325,484
6,884
5,644
3,885
539
1,733

15,06523,602
6,602
6,625
4,312
706
1,473

17,14022,004
6,643
7,099
4,625
237
2,195

22,152
26,272
6,266
5,839
4,683
848
1,603

22,932
25,911
7,023
6,717
5,093
481
3,100

7,502

(11,696)(14,013)

(138)

5,258

2,515
1,544
971
522
–
522

2,446
1,718
728
687
–
687

2,683
1,577
1,106
1,541
–
1,541

1,586
23
1,563
1,895
–
1,895

1,537
(23)
1,561
5,578
4,647
930

9,495

(9,937)(12,871)

(448)

1,218

Extraordinary income
Extraordinary loss

180
1,055

10
211

7,522
7,540

891
1,421

7,414
13,273

Income (loss) before income taxes

8,620( 10,138)(12,890)(978)(4,639)

Income taxes-current

3,851(4,262)

(771)

2,715

3,666

Income taxes-deferred(4,364)

1,860(1,673)673(6,907)

(321)

(136)

(383)

2,542

2,772

9,455

(7,599)(10,062)(6,909)(4,171)

Minority interests in income (loss)
Net income (loss)

11

Reference: Non-Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2009
[Quarterly performance trends](1) Non-consolidated operating results(Millions of yen)First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

Operating revenue

148,435

Commission
received
Net trading income
Net operating
revenue
Operating income(loss)

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

121,214(27,220)

255,024

63,53350,025(13,507)

117,318

57,147

40,121(17,026)

85,255

129,564

98,752(30,811)

212,690

25,281(2,205)(27,487)

6,858

Ordinary income

25,680517(25,162)

6,202

Net income (loss)

18,001(16,065)(34,067)(4,169)(Breakdown of operating revenue)<Breakdown by item of commission received>(Millions of yen)First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

25,275

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

15,475(9,799)42,628

4,623

3,427

(1,196)

8,106

14,486

12,553(1,932)

24,947

Other fees received

19,147

18,569(578)

41,636

Total

63,53350,025(13,507)

117,318

Commission toconsignees
Underwriting anddistributioncommission
Flotation anddistribution fee<Breakdown by product of commission received>(Millions of yen)First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

Stocks28,807

Bonds
Beneficiary
certificates

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

16,839(11,967)

49,050

2,866

2,959

93

5,366

24,42822,670(1,758)45,276

Other

7,431

7,556

125

17,625

Total

63,53350,025(13,507)

117,318

12

<Net trading income>(Millions of yen)First six months of
FY2007First six months of
FY2008(From April 1, 2007
to September 30, 2007)(From April 1, 2008
to September 30, 2008)

FY2007
Increase (Decrease)(From April 1, 2007
to March 31, 2008)

Securities

8,688

2,984

(5,704)

11,819Bonds

47,06235,090(11,972)

135,957

Other

1,396

2,046

650

(62,521)

Total

57,147

40,121(17,026)

85,255(2) Non-consolidated financial position
As of
September 30, 2008

As of March 31, 2008

Increase (Decrease)(Millions of yen)
As of
September 30, 2007

Total assets

13,929,422

9,986,090

3,943,332

10,626,105

Net assets

673,754

690,418(16,663)

717,478

277.3

299.4

(22.1)

339.9

Net capital regulation
ratio (%)

13