Business Overview

PARTICIPANTS AND ACCOUNTS
Participant firms open an account at JASDEC and deposit the certificates they wish to consign. Suchfirms include securities companies, banks, trust banks, insurance companies, securities finance companies and stock exchanges.
As of the end of March 2004, the number of participants stood at 275, and the number ofaccounts stood at 459.
PARTICIPANTS BY
CATEGORY

Stock exchange
and others 15(As of March 31, 2004)

NUMBER OF
ACCOUNTS BY
CATEGORY

Securities
financecompanies 3

Stock exchange
and others 29

Securities
financecompanies 4(As of March 31, 2004)

Life and non-life
insurance companies 7
Note: Customers of participant
firms do not deposit certificatesdirectly to JASDEC. Instead, theyutilize JASDEC’s services through theaccounts they establish at participant
firms.

Life and non-life
insurance companies 9Banks45
Securities
companies 205

Securities
Banks 182 companies
235

Total 459

Total 275

ISSUING COMPANIESAs of the end of March 2004, 3,665 companies, representing all publicly traded companies in Japan,
have consented to JASDEC handling their stocks.
Number of Companies
4,500

4,000

3,5003,0000

FY1999FY2000FY2001

FY2002

FY2003

3,366

3,498

3,610

3,626

3,665

ELIGIBLE SECURITIESJASDEC accepts the securities described in the CSD Law. Consent of the issuing company is also aprerequisite. Currently, securities deemed eligible are domestic securities, including stocks, convertible bonds (CBs; corporate bonds with subscription warrants to new shares), beneficiary certificatesof exchange-traded funds (ETFs), certificates of real estate investment trust (REITs), and preferredinvestment bonds of financial institutions established by cooperative associations, which are listed on
stock exchanges or registered with the Japan Securities Dealers Association (JSDA).

ELIGIBLE SECURITIES BY CATEGORY (As of March 31, 2004)
StocksPreferred investment securities
Beneficiary certificates of ETFs
Certificates of REITs
CBs

14

228,201 million shares
243,387 units
1,993 million units
2,359 thousand units
4,302,455 million yen

3,666 issues
1 issue
18 issues
14 issues
207 issues

Business Overview

HANDLING OF STOCK CERTIFICATES(a) Deposits and withdrawals
The number of shares deposited is influenced by market trends and corporate actions. On the otherhand, the withdrawals to deposits ratio has decreased year by year, and stood at 21.4% as of the endof March 2004.
(Years ended March 31)

Billions of shares
60%
404530302015100

Number of Shares Deposited
Number of Shares Withdrawn
Withdrawals to Deposits Ratio

FY1999
36.2
14.5
40.0%

FY2000
47.3
20.0
27.6%

FY2001
56.2
21.7
19.8%

FY2002
37.4
25.8
28.5%

FY2003
37.3
12.2
21.4%

0Note: The above ratios are calculated based on the number of shares deposited, excluding shares deposited by stock splits, and shares
withdrawn, excluding the shares by stock transfer and merger.

(b) Custody
As of the end of March 2004, the number of shares held in JASDEC’s custody amounted to 228,201
million shares and the balance held accounted for 64.1% of the total outstanding shares issued bypublicly owned companies in Japan.
Billions of shares
240%
80180601204060

200

Custody Balance
Ratio of Custody Balance to Shares Issued in Japan
Uncertificated Part of Shares in Custody

FY1999129.734.1%
41.8%

FY2000
157.0
42.3%
46.8%

FY2001
191.5
53.5%
49.9%

FY2002
203.1
58.6%
51.9%

FY2003
228.2
64.1%
56.3%

0(c) Book-entry transfer
As of the end March 2004, exchange trade transfers amounted to 311,970 million shares, and transfers for non-exchange trade deliveries (NETD) amounted to 442,739 million shares.
Billions of shares
500%
70400

60300

50200

400Transfers for NETD
Transfers for Exchanges Trade Deliveries
Ratio of Transfers for NETD to Total Transfers

FY1999
248.2
204.9
54.8%

FY2000
279.0
205.1
57.6%

FY2001
337.0
239.9
58.4%

FY2002
355.0
225.7
61.1%

FY2003
442.7
311.9
58.7%

015

Business Overview(d) Beneficial shareholder notification
As of the end of March 2004, number of beneficial shareholder notification services amounted to61,221million shares or 448,199 thousand cases.
Billions of shares
80

Thousand cases
50060

375

40

250

20125

0FY199930.7253.1

Number of Shares
Number of Notifications

FY200041.7307.2

FY200147.8
367.1

FY200254.7
430.2

FY200361.2
448.1

0OTHER SECURITIES OPERATIONSAs of the end of March 2004, an overview of other securities by category is as follows.
(c) Preferred investment securities of financial
institutions(a) Convertible bonds (CBs)(Millions of yen)
Deposits
Withdrawals
CustodyBook-entry transfers
Exchange trade transfers
Non-exchange trade transfers
Number of issues(Number of units)
Deposits
Withdrawals
CustodyBook-entry transfer
Exchange trade transfer
Non-exchange trade transfer
Number of issues

84,495
1,245,315
4,302,455
183,501
1,380,759
207

7,338
4,376
1

(d) Real estate investment trusts (REITs)(b) Exchange-traded funds (ETFs)(Thousands of units)
Deposits
Withdrawals
CustodyBook-entry transfers
Exchange trade transfers
Non-exchange trade transfers
Number of issues

135672
243,387(Number of units)
Deposits
Withdrawals
CustodyBook-entry transfers
Exchange-trade transfers
Non-exchange trade transfers
Number of issues

14,371
192,752
1,993,119
241,771
1,116,516
18

244,725
12,4292,359,380
282,670
542,15914(e) Electronic CP (End-of-month data)
Billions of yen
1,600

280

1,200

210

800

140

400

700Mar.
Apr.
2003
Outstanding Amount 16.5 210.4
333
Number of Issues

MayJun.

Jul.

Aug.

Sept.

Oct.

247.2
47424.985470.892563.4110558.2117532.5
132

Note: Electronic CP became eligible to JASDEC in March 2003.

16

Nov.

Dec.

Jan.
Feb.
Mar.
2004
703.9 1,058.1 1,205.5 1,292.1 1,403.2
158
193
214
239
2570