Japan Securities Finance Co.,Ltd This document is the 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
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【Margin Loan】
• Interest on loans decreased, mainly due to a decline of Margin Loan balance and lowered margin loan rate. •Lending fees decreased slightly, and premium charges decreased.
【Bond Financing and General Loans】
•While Loans for negotiable margin transaction balance increased, loan to individuals and securities companies decreased. •Equity repo transaction contributed.
【Securities Lending】
•Borrowing demands of stock certificates declined. •Interest on collateral money of bond lending decreased because of  a decline of trading rates.
【Trust Bank】
• Interest on loans decreased, as loan balance declined. • Trust charges increased. 【Others】 •Coupon income on JGBs decreased. 4
1 Margin Loan Balance for FY2009
◆ Average Margin Loan Balance for FY2009 was ¥324bn, ¥12bn decrease YoY, and loan rate was lowered, so Interest on Loans decreased. ◆ Average Stock Loan Balance for FY2009 was ¥361bn, ¥34bn decrease YoY, so Lending fees and Premium Charges decreased. 5
Decrease of Operating Expenses and General & Administrative Expenses [Operating Expenses] ▲64.7%, YoY * Interest paid for funding money decreased largely, due to a decline of market rate. * Valuation loss of securities decreased significantly, which was the main factor of last year’s deficit. [General & Administrative Expenses] ▲24.2%, YoY * Mainly, depreciation cost for system investment and credit cost decreased.
JSF Trust Bank went into the black
◆ Valuation loss of securities disappeared. ◆ Booked the gain on the sale of bonds.
Loss in Equity-Method
◆ JBIS holdings resulted in deficit because of a decline of revenues and extra-ordinary loss for early retirement benefit, etc. ◆As a result,  JSF booked loss in equity-method of ¥916mil as non-operating expenses. Japan Securities Finance Co.,Ltd
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* Figure of JSF Trust Bank is Recurring Revenues. Japan Securities Finance 7
Financial Highlights ◆ Recurring revenues decreased, due to decrease of loan balance and reduction of assets, while trust charges increased. ◆ Recurring Income turned into the black, thanks to a decline of funding costs and valuation loss of securities disappeared. Trust Business � Trust charges extended well, as strengthening the expansion of customers' money segregated money trust and foreign exchange margin trust. Banking Business ◆  Loan balance is on the decrease. Provision for loan loss reserve decreased largely. ◆  Booked the gain on the sale of bonds. 8

● Securities Holdings

●Ratio of Securities (as of Mar-10) ■ JGB less than 1Y口JGB over 1Y □ Municipal Bond ■ Corporate Bond ■ Foreign Securities
●Change of Loan Balance (as compared with Sep-09, ex government) -6,000  -4,000  -2,000 2,000 0 4,000 6,000 9

Financial Highlights
◆  Revenues of Information Service Business dropped, because of the reduction for IT investment in information service industry. ◆  Revenues of Securities Operation Service also dropped after the introduction of a dematerialization of stock certificates. ◆  Booked extra-ordinary loss. (cost of head office transfer, impairment, early retirement benefit, etc.) ◆  As a result, JBIS holdings resulted in deficit, despite of a profit measure such as the reduction of fixed costs.
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FY2009 Results Matching Margin Loan   Stock Loan ¥324bn ¥361bn Apr-10 Results Margin Loan ¥313bn Stock Loan ¥312bn ¥150bn Margin Loan   Stock Loan ¥320bn ¥310bn Preconditions ● Loan Rate:0.97% ● Interest on Collateral Money:0% ● Lending Fee:0.40% Japan Securities Finance Co.,Ltd
13 Management Matters
02 02 04 07 00 08 09 09 10 00 00 01 01 02 03 03 03 04 04 05 05 05 06 06 06 07 07 08 09 Aug- Dec- Apr- Apr- 00 00 01 00 05 06 10 05 06 06 07 07 07 08 08 09 09 09 Japan Securities Finance Co.,Ltd
～Strategies of 2nd MMP～ 【Business Strategies】 ◆Increase the number of Loanable Issues ◆Loans for Negotiable Margin Transactions ◆Respond to diverse funding needs of brokers ◆Increase Securities Lending Business Revenues 【Strenghthen Management Foundation】 ◆Improve Business Management System ◆Upgrade Business Continuity Plan ◆Organization Efficincy and Human Resource Development ◆Reinforce Funds Procurement Foundation ◆Strengthen Group Company Alliance
Increase the number of Loanable Issues to improve convenience and to strengthen competiveness of Margin Loan Business. Loanable Issues: 1,716 (as of Mar-10)
Recent added Issues
01/Mar/2010   Fast Retailing 06/May/2010   The Dai-ichi Life Insurance Company 【from listed date】 14/May/2010  Listed Index Fund Japan High Dividend (TSE Dividend Focus 100) 17/May/2010  NEXT FUNDS NOMURA Crude Oil Long Index Linked Exchange Traded Fund【from listed date】 Japan Securities Finance Co.,Ltd 17
End of Margin Loan Business for JASDAQ market Share of Standardized Margin Selling Transaction Share of Standardized Margin Buying Transaction

Group Risk Control
◆  Efficient Risk control to JSF Trust Bank ◆  Strengthen governance to JSF Trust Bank Business  Continuity Plan ◆  Build and run Back-up system for business continuity plan Discontinue Operations of Branch Offices ◆  Discontinue operations of Sapporo Branch and Fukuoka Branch at the end of Mar 2010 ◆  Business of both branches is succeeded to Head Office
JSF Trust Bank 1. Expansion of Trust Business •Business promotion to foreign exchange brokers for Foreign Exchange Margin Trust. •Boost Securities Trust. 2. Securities Investment Policy in Banking Business • Investment in riskless assets such as JGBs or government guarantee bonds. 3. Loan Policy in Banking Business •Loan balance is on the decrease with considering profit trend.
JBIS Holdings
◆JBIS Holdings booked a deficit in a row. ◆JBIS Holdings is preparing a new mid-term management plan to stabilize and strengthen its profitability.

◆  Dividend Policy
Basically, Dividend Payout Ratio of about 40% on Parent Financial Results, and considering Consolidated DPR or Dividend on Equity (DOE) Ratio. FY2010 Forecast : Annual ¥14 (Interim ¥7, year-end ¥7)
80 60 40 20 Earning per share(parenet) | Dividend per share ✦一Dividend Payout Ratio(parent)
Japan Securities Finance Co.,Ltd

Japan Securities Finance Co.,Ltd

Japan Securities Finance Co.,Ltd
Mar-09 Sep-09 Mar-10 ■■ over 1Y  
— Remaining Period (exclude 15Y JGB)
Interest on Collateral Money 0% → Loan Rate
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%)
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%) ◆  Margin Loan Rates are decided by reflecting the change of market rates and BOJ’s Policy Interest Rate. Japan Securities Finance Co.,Ltd
88 89 89 90 91 92 92 93 94 95 95 96 97 98 98 99 00 01 01 02 03 04 04 05 06 07 07 08 09 10
Japan Securities Finance Co.,Ltd

Number of shares issued and Cancellation
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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.