Japan Securities Finance Co.,Ltd
This document is an English translation for non-Japanese investors convenience. Although Japan Securities Finance intend to faithfully translate the Japanese documents into English, the accuracy and correctness of translation are not guaranteed, so you are kindly encouraged to refer to the original Japanese documents. Financial Summary
Japan Securities Finance Co.,Ltd 33

【Margin Loan】
• The revenues in the business decreased due to lowered margin loan rate and the reduction of Fees on Lending Securities.
【Bond Financing and General Loans】
•Loan to individuals and corporations decreased. •Loan to securities companies also decreased.
【Securities Lending】
•Borrowing demands of stock lending decreased. •Borrowing demands of bond lending increased. 【Others】 → • Profit on sale of holding JGBs decreased. 【Trust Bank】   • Bond Trading increased greatly. Japan Securities Finance Co.,Ltd 44
As the outstanding balance of standardized margin transactions declined, ´both Margin Loan Balance and Stock Loan Balance decreased. Avg. Margin Loan Balance for FY2011, 1Q : ¥256bn（▲¥ 113bn, YoY） Avg. Stock Loan Balance for FY2011, 1Q   : ¥191bn（▲¥    60bn, YoY） Profit for bond trading largely increased in JSF Trust Bank. Booked Profit for bond trading of ¥1,966mil（+¥1,219mil, YoY） in JSF Trust Bank, due to sale gain of CDO. Booked Loss in Equity-Method Our Equity Method investment fell down by the loss in JBIS Holdings. Loss in Equity-Method for FY2011,1Q: ¥30mil (Profit in Equity-Method for FY2010,1Q:¥60mil) ※By the application of new accounting standards, we have deducted reversal of allowance of doubtful receivables from Extraordinary Profit since FY2011,1Q. (We included it in Extraordinary Profit before.) Japan Securities Finance Co.,Ltd 5
10 10 10 10   11    11    11    11    11     11 10 10 10 10 10 11  11  11   11    11 12   12    12 6
20,000 Sep- Dec- Mar- Jun- Sep- Nov- Feb- May- Aug- Nov- Feb- May- Dec- Mar- Jun- Jan- Mar- Jun- Jul- Oct- Jan- Apr- Jul- Oct- 06 06 06 06 06 07 07 07 07 08 08 09 09 09 10 08 08 09 10 10 10 10 11 111 Sep-  Dec-  Mar- Jun- Sep- Nov- Feb- May- Aug- Nov- Feb- May- Jan-  Mar- Jun- 06 07 08 08 08 08 09 06 06 06 06 07 07 07 09 Jul- 09 Jan- Apr- Jul- Oct-  Dec-  Mar- Oct- Jun- 09 10 10 10 10 10 11 11 Japan Securities Finance Co.,Ltd 7
* Figure of JSF Trust Bank is Recurring Revenues. Japan Securities Finance 8

Financial Highlights for FY2011, 10
◆ Trust charges increased  due to strengthening the expansion of  trust business. ◆ Loan for government decreased, Interest on loans also decreased. ◆ Profit  largely exceeds the same period a year ago by sale of CDO in April 2011. 9

● Securities Holdings

● Ratio of Securities(as of Jun-11) □JGB 1year or less口JGB over 1Y ■ Municipal Bond □Corporate Bond ■Foreign Securities
Japan Securities Finance Co.,Ltd
※( ) is change from Estimated Figures released on May 12. 11

FY2011,1Q Results
Margin Loan   Stock Loan ¥256bn ¥191bn Jun-11 Results Margin Loan ¥258bn Stock Loan ¥185bn Margin Loan   Stock Loan ¥250bn ¥230bn Preconditions ● Loan Rate:0.77% ● Interest on Collateral Money:0% ● Lending Fee:0.40% Japan Securities Finance Co.,Ltd
Japan Securities Finance (20.8%)
>  New Dividend Policy Basically, Dividend Payout Ratio of about 40% on Consolidated Financial Results, considering Dividend on Equity (DOE) Ratio. FY2011 Forecast: Annual ¥14 (Interim ¥7, year-end ¥7)

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¥ tri Japan Securities Finance Co.,Ltd
Japan Securities Finance Co.,Ltd 19

Features of Assets
(1) Fluctuation of Loan Balance Loan balance moves everyday because margin loan is over-night loan (2) Holding JGBs for flexible cash funding Holding certain amount of JGBs to fund money flexibly in short-term money market
Features of Liabilities
(1) Fluctuation of money funding amount Need to response flexibly to fluctuating cash demands, because of the fluctuation of margin loan balance (2) Dependent on market Cash funding structure is not stable and depends on money market, because no deposits like banks (3) Funding with low rate Required to fund in low cost to supply money for securities market stably and flexibly
Sep-10 Mar-11 Jun-11
|over 1Y 1 year or less —♠—Remaining Period (exclude 15Y JGB) ■over 1Y ■ 1 year or less 22
しゃべられる。そのようなので、いくらいいので、そのようなので、いくらいいのからいいので、 Ratio of JSF Loans to Margin Transactions ** JSF Margin Loans (Left) ,  JSF Stock Loans (Right) Japan Securities Finance Co.,Ltd Loan Rate of Loans for Margin Transactions 23

BOJ Policy Interest Rate
■  Jul 2006  Uncollateralized O/N  Call Rate:0.25% ■   Feb 2007 Uncollateralized O/N  Call Rate:0.50% ■   Oct 2008  Uncollateralized O/N  Call Rate:0.30%(▲0.20%) ■  Dec 2008 Uncollateralized O/N  Call Rate:0.10%(▲0.20%) ■  Oct 2010 Uncollateralized O/N  Call Rate:0～0.10% (▲0.10~0%) Interest on Collateral Money 0%
Margin Loan Rate
27/Jul/2006 0.74%(+0.14%) 22/Sep/2006 0.86%(+0.12%) ■ 15/Mar/2007 1.02%(+0.16%) ■  05/Apr/2007 1.11%(+0.09%) 29/Jan/2009 0.97%(▲0.14%) 22/Nov/2010 0.77%(▲0.20%) ◆ Margin Loan Rates are decided by reflecting the change of market rates and BOJ’s Policy Interest Rate. Japan Securities Finance Co.,Ltd
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Number of shares issued and Cancellation
■Cancellation ✦━ Consolidated PBR
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This document includes statements for business forecast.  These statements don’t guarantee company’s future achievement and that involve risk or uncertain factors.  Company’s  future achievement may be changed drastically up to stock market or financial conditions.