JASDEC, Japan’s central
securities depository,opened a new chapter
in its business history
in the fiscal year ended
March 31, 2003, bytaking its place as astock corporation.

Annual Report 2003
Printed in Japan on recycled paper
Uses soybean ink inconsideration of the environment

For the year ended
March 31, 2003

Corporate Information(As of June 30, 2003)

The Japan Securities Depository Center, Inc. (JASDEC), is the only central securities
depository in Japan, designated under the Law Concerning Central Securities
Depository and Book-Entry Transfer of Stock Certificates and Other Securities (CSDLaw). JASDEC provides depository and book-entry transfer services for marketablesecurities, in accordance with the CSD Law.
In June 2002, JASDEC assumed all businesses previously undertaken by theJapan Securities Depository Center—its predecessor organization, which was established in December 1984 under the CSD law as a not-for-profit foundation—andbegan operations as a stock company.
JASDEC aims to contribute to the formation of a Japanese financial market thatis highly competitive on an international basis. Toward this end, the Company will
utilize its status as a stock company to make its operations more transparent andstrengthen its financial position, while working to improve the safety, efficiency andconvenience of securities settlement systems.

COMPANY NAME:

Japan Securities Depository Center, Inc.

DATE OF INCORPORATION:

January 4, 2002

DATE OPERATIONS BEGAN:

June 17, 2002

CAPITAL:¥4.25 billion

COMMON STOCK ISSUED:

8,500 shares

NUMBER OF SHAREHOLDERS:

198

NUMBER OF EMPLOYEES:95

ADDITIONAL PERSONNEL:

217 (working for entrustees)
101 (working on outsourced systems development and operations)

REGISTERED HEAD OFFICE

1-1, Nihombashi-Kayaba-cho 2-chome
Chuo-ku, Tokyo 103-0025, Japan
Phone:+81-3-3661-0161

Facsimile: +81-3-3661-2810
Website:http://www.jasdec.com

OPERATIONS OFFICES

CommencedbusinessExpansion

Osaka Office:6-10, Kitahama 1-chome, Chuo-ku, Osaka 541-0041

December 6, 1984

October 9, 1991

November 26, 2001

Nagoya Office:3-17, Sakae 3-chome, Naka-ku, Nagoya 460-0008

The Japan Securities Depository Center established as a
not-for-profit foundation inline with the November 1984
enforcement of the CSD Law.

Commenced business asJapan’s only central securities
depository for stock
certificates.

Began handling convertible
bonds.

Fukuoka Office:14-2, Tenjin 2-chome, Chuo-ku, Fukuoka 810-0001

Sapporo Office:14-1, Minamiichijo-Nishi 5-chome, Chuo-ku, Sapporo 060-0061

EstablishedContents

At a Glance
1
Financial Highlights
2
President’s Message
3
Spurring Greater Confidence in the Japanese Market
7
Business Overview
14
Financial Statements
17
Report of Independent Auditors
27
Board Members and Auditors
28
List of Participants
30
History
Cover:
32
The character on the cover—pronounced “sou”—means
Corporate Information
creation. To JASDEC, this character is not merely a part33of language but a true symbol of the creativity that
infuses the Company, in the activities it undertakes
Organization Structure
today and those that it plans for tomorrow.
33

Tokyo Office:6th Floor, Daini-Shoken Kaikan Bldg.
1-1, Nihombashi-Kayaba-cho 2-chome, Chuo-ku, Tokyo 103-0025

March 31, 2003
Began handling commercial
paper in dematerialized form,in accordance with the Law
Concerning Book-Entry
Transfer of Corporate andOther Debt Securities.

Organization Structure(As of June 30, 2003)● M EETING OF S HAREHOLDERS● A UDITORS O FFICE● B OARD OF D IRECTORS● P RESIDENT & CEO● A UDITORS● General Administration Department● General Affairs Section● Accounting Section● Corporate Planning Department● Business Administration Department● Commercial Paper Department● Business Planning Department● First System Department● Second System Department● Tokyo Operations Office● Osaka Operations Office● Nagoya Operations Office● Fukuoka Operations Office● Sapporo Operations Office33

At a Glance

PARTICIPANTS BY CATEGORYSHARES IN CUSTODY(As of March 31, 2003)

203

billion shares
The number of shares in custody exceeded 200
billion in September 2002 and reached 203.1
billion by the end of March 2003.

Securitiesfinance companies 3
1.1%

Stock exchanges,
etc. 14
5.1%

Life and non-life
insurancecompanies 72.6%
Banks 43

15.8%
75.4%

SHARES TRANSFERRED BY BOOK ENTRY

Securities
companies
205580Total 272
billion shares
Of the 580.8 billion shares transferred by book entry, non-exchange trade transfers
accounted for 355.0 billion shares, or 61.1% of the total.

New corporate
structure

Our mission
In view of our duty to serve the public,

January 4, 2002
The Japan Securities
Depository Center, Inc.
incorporated as a stockcompany.
June 17, 2002
Assumed all the businessesof the Japan Securities
Depository Center, inaccordance with the CSD
Law.

our mission is to provide a highly secure,efficient and convenient securities
clearing and settlement infrastructure,
which in turn contributes to functional
improvement of the securities market.
Toward this end, we place a special focus
on reducing settlement risks, promoting
straight-through processing (STP), andencouraging greater use of depository
services for further immobilizationof securities amid progress in thedematerialization of securities certificates.

NUMBER OF ELIGIBLE ISSUING COMPANIES

3,626

companies
We handle the share certificates of nearly all publicly traded companies in Japan.
CUSTODY RATIO

59%
Shares in custody represents 59.1% of the entire domestic stock market. Our custodyratio for convertible bonds reached 93.5% as of the end of March 2003.

1