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IR Presentation
Financial Summary & Business Strategy
August 2018
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1
Contents
Overview of Tokai Tokyo Financial Holdings
2
Business Characteristics 6
Financial Overview 8
Business Focus 14
Capital Policy 20
Business Theme 25
* Unless otherwise specified, the numerical data we quote here
were all compiled as consolidated figures of the Tokai Tokyo
Financial Holdings, Inc.
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Overview of Tokai Tokyo Financial Holdings
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3
Corporate ProfileCompany Name: Tokai Tokyo Financial
Holdings, Inc. (TSE, NSE:8616)Representative: Tateaki Ishida,
President & CEOConsolidated Net Assets: 174.8 billion yenClient
Assets under Custodyof Tokai Tokyo Securities: 4,659.1 billion
yen
(Retail Client Assets: 2,653.0 billion yen)Market
Capitalization: 198.8 billion yenNumber of Employees:
Holding Company 183Consolidated Basis: 3,397
Group company of theTokai Bank(b)
Group company of theNikko Securities (a)
Tokai Tokyo Securities
Tokai Tokyo Financial Holdings
was established
Apr. ‘09
Oct. ‘07YM
Nov. ‘08Hamagin TT
May ‘10Nishi-Nippon City TT
Oct. ‘12Senshu Ikeda TT
Apr. ‘10Relocated HQ of TTSC
to Nagoya CityApr. ‘10
TTSC merged with Toyota Financial
Services Sec.Tokyo
Securities
Tokai Maruman Securities
Jan. ‘17HokuhokuTT
Group HistoryCurrent group configuration was formed in
October 2000 through merger between Tokyo Securities and Tokai
Maruman Securities
* Currently, (a) SMBC Nikko Securities, (b) Bank of
Tokyo-Mitsubishi UFJ
Apr. ‘17Tochigi Bank invested in Utsunomiya Securities
March. ‘17
AcquiredETERNAL
Apr. ‘17
AcquiredTakagi Sec.
Sep. ‘17
AcquiredPinnacle
（As of March 31, 2018）
Mar. ‘18Basic Agreement with Juroku Bank regarding Comprehensive
Business Alliance
Overview of Tokai Tokyo Financial Holdings
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4
Tokai Tokyo Securities :64 operating outlets
Tokai41 outlets
(32 in Aichi Pref.)
Kyushu1 outlets Chugoku/
Shikoku4 outlets
Kinki3 outlets
Koushin’etsu2 outlets
Tohoku1 outlets
Kanto12 outlets
(8 in Tokyo)
Utsunomiya Securities
(6 operating outlets)
(7 operating outlets)
YM Securities
Nishi-Nippon City TT
(19 operating outlets)
(22 operating outlets)
Hamagin TT
(17 operating outlets)
Senshu Ikeda TT
(As of May 11, 2018)
(5 operating outlets)Hokuhoku TT
Takagi Securities :14 operating outlets
JV Securities :76 operating outlets
ETERNAL
(Insurance Terrace 70 outlets)
Area Coverage [Brokerage Business]
Nationwide Network
Overview of Tokai Tokyo Financial Holdings
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5
HeadquartersOverseas Subsidiary
Business Partnership
Mirae Asset Daewoo Securities Guotai Junan Securities
First Metro Investment Corporation
Stifel Financial Corp.
Kenanga Investment Bank
Overseas Affiliate
Phillip Tokai Tokyo Investment Management
Phillip Securities
Tokai Tokyo Financial Holdings
Tokai Tokyo Securities (Asia)
Tokai Tokyo Securities Europe
Tokai Tokyo Securities (USA)
Bao Viet Securities
Bank of East Asia
Business Partnership with Capital Injection
Tokai Tokyo Global Investments
Tokai Tokyo InvestmentManagement Singapore
(As of July 26, 2018)
Bualuang Securities
Overseas NetworkOverview of Tokai Tokyo Financial Holdings
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Business Characteristics
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7
Alliance & Platform
Strength inMarket Div.
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7 alliances with regional banks for jointly funded securities
- Brokers’ broker business (58 cos.)
Business Characteristics
- High‐net‐worth- Matured- Next generation
Sound managementGovernance: Outside directors / Audit & Supervisory Committee / 3 defense lines
Solid
business base in Tokai AreaTokai area: No.1 shipment of manufactured goods / Linear bullet train
Hydrogen fuel cell vehicle / Mitsubishi Regional Jet (MRJ)
Segmentedretail business
Corporate sales &investment bank
‐ Bonds‐ IPOs
- Foreign equities- Structured Notes
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Financial Overview
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9
Characteristics
of Business and Financial Performance
TTSC75%
Takagi Securities
6%
ETERNAL2%
FH + other Subsidiaries
4%
JV6 companies
+Ace13%
TTSC85%
FH +other
Subsidiaries3%
Equity Method Profits (JV 6companies
+Ace11%
DividendIncome
3%
Group Operating Revenue image including the affiliates’ figures on pro‐rata basis*1
* 1 The charts present images of the source of Group revenue and
income in FYE Mar 2018, which, being different from our
consolidated PL, include affiliates’ figures on pro-rata basis.
Group Ordinary Income image including the affiliates’ figures on pro‐rata basis*1,
2
* 2 Takagi Securities is not included in this chart because
ofits ordinary loss.
Financial Overview
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10
Financial Trend
0
2,500
5,000
7,500
10,000
12,500
15,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1Q
FYEMar 2014
FYEMar 2015
FYEMar 2016
FYEMar 2017
FYEMar 2018
FYEMar2019
Operating revenue Ordinary income Net Income
Operating Revenue, Ordinary Income(Million Yen)
Net Income(Million Yen)
12,000
16,000
20,000
24,000
28,000
Recorded positive ordinary income for 31 consecutive
quarters
¥11.16 billion gain of negative goodwill by acquiring Takagi
Securities
(Nikkei 225)(Yen)
Financial Overview
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11
Financial TrendFinancial Overview
90,547
82,700
67,584 65,412
85,261
33,405 28,524
15,297 13,269
20,939
23,243
18,499
12,423
11,990
25,397
0
5,000
10,000
15,000
20,000
25,000
30,000
0
20,000
40,000
60,000
80,000
100,000
FYEMar 2014
FYEMar 2015
FYEMar 2016
FYEMar 2017
FYEMar 2018
Operating Revenue Ordinary Income Net Income
Operating Revenue, Ordinary Income(Million Yen) Net
Income(Million Yen)
¥11.16 billion gain of negative goodwill by acquiring Takagi
Securities
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12
Financial Performance in Industry
: Bank-affiliated companies*1 US GAAP basedNote: Excluding
online brokersTokai Tokyo Financial Holdings prepared the table
compiling from publicly disclosed data
Top 10 Securities Companies by Operating Revenue
Financial Overview
Ordinary Income FYE Mar 2018
Company Name Amount(Million Yen) YoY
1 Nomura *1 328,158 1.7%
2 Daiwa 155,676 14.8%
3 SMBC Nikko 94,982 18.6%
4 Mitsubishi UFJ Morgan 84,206 - 15.5%
5 Mizuho 43,260 - 42.9%
6 Tokai Tokyo 20,939 57.8%
7 Okasan 12,771 - 17.2%
8 Ichiyoshi 7,229 134.9%
9 IwaiCosmo 5,465 184.5%
10 Kyokuto 3,567 - 24.7%
Operating Revenue FYE Mar 2018
Company Name Amount(Million Yen) YoY
1 Nomura *1 1,972,158 15.0%
2 Daiwa 712,601 15.6%
3 SMBC Nikko 397,405 10.0%
4 Mizuho 381,474 -10.4%
5 Mitsubishi UFJ Morgan 376,901 - 6.8%
6 Tokai Tokyo 85,261 30.3%
7 Okasan 81,921 1.6%
8 Ichiyoshi 26,502 27.9%
9 IwaiCosmo 21,089 30.6%
10 Marusan 18,985 20.9%
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Features of Financial Result FYE March 2018Financial Overview
Retail business Market Div.
Foreign equity, structured bond, mutual fund, Japan
equity
Joint securitiesPlatform business
New projectsTakagi Sec., Ace Sec.
ETERNAL, ANAM, MONEQUE
High-net-worth business
Retail57%
Corporate & Institutional
Sales5%
Market & Products
32%
Corporate Finance
2%
Other4%
Growth of Non‐Retail Business by Revenue
Profit by Business Segment*
Retail31%
Market & Products
56%
Other13%
* Corporate & Institutional Sales and Corporate Finance are
not included in this chart because of its ordinary loss of -1% and
-2% respectively.
13
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Business Focus
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15
Feature of Retail Business
1. High‐net‐worth business
2. Aging society
3. Tokai area
4. Variety of Product
Business Focus
Over 8019%
70s31%
60s29%
50s13%
40s4%
Under 402% Corporate
2%
High Wealth19%
Wealth33%
Middle40%
General6%
Non‐Face‐to‐Face2%
Tokai(Central Japan)67%
Tokyo(Eastern Japan)19%
Osaka(Western Japan)12%
Non‐Face‐to‐Face2%
Japan Equities28%
Foreign Equities30%
Bonds13%
Mutual Funds22%
Other7%
Revenue share image(FYE Mar. 2018)
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16
-10,000
0
10,000
20,000
30,000
FYEMar2016
FYEMar2017
FYEMar2018
1Q FYEMar2019
Fund RevenuePosition RevenueCustomer Revenue Flow
（Million Yen）
Growth of Market Division
1. Stable growth
2. Well-balanced by product
by client flow & prop. trading
3. High profitability
Business Focus
0
10,000
20,000
30,000
FYEMar2016
FYEMar2017
FYEMar2018
1Q FYEMar2019
（Million Yen） Trading Revenue
0
10,000
20,000
30,000
FYEMar2016
FYEMar 2017
FYEMar2018
1Q FYEMar2019
OtherForeign Bonds and DerivativesForeign EquitiesBond
TradingEquity Trading
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17
‐554 389 526 636
1,410 2,570 2,568
1,431 1,073 2,317
386 4651,041 1,325
1,636
2,434
3,0313,996
3,464 3,783
5,603
1,373
0
12
39 45
22 17
23
32 37 38
82
0
10
20
30
40
50
60
70
80
90
-1,0000
1,0002,0003,0004,0005,0006,0007,0008,0009,000
FYEMar2009
FYEMar2010
FYEMar2011
FYEMar2012
FYEMar2013
FYEMar2014
FYEMar2015
FYEMar2016
FYEMar2017
FYEMar2018
1QFYEMar2019
(%)
(Milli
on Y
en)
Income and Other Benefits Realized from Transactions with
JVsGain on Investments in PartnershipProportion to Consolidated
Ordinary Income
Focused Project
Alliance with regional banks- Growth of AUC
- Income contribution
- Expectation for the next JV with Juroku Bank
Business Focus
5
245371
540642
780884
1,047998
1,2441,450
1,469
0200400600800
1,0001,2001,4001,600
(Billi
on Y
en)
Assets under Custody ‐
from JVs (6 Entities)
Income Contribution from JV Affiliates
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18
Bank NameBank
Deposits(Trillion Yen)
JV Name Operationstarted
1 Concordia Financial Group* 15.4 Hamagin Tokai Tokyo Sec
Nov-20082 ★ Mebuki Financial Group 13.93 ★ Fukuoka Financial Group
13.74 ★ Chiba Bank 12.05 Hokuhoku Financial Group* 11.0 Hokuhoku
Tokai Tokyo Sec Jan-20176 ★ Shizuoka Bank 9.57 Yamaguchi Financial
Group* 8.7 YM Securities Sec Oct-20078 ★ Kyushu Financial Group
8.39 Nishi-Nippon Financial Holding 7.8 Nishi-Nippon City Tokai
Tokyo Sec May-201010 ★ The 77 Bank 7.411 ★ Hiroshima Bank 7.112 ★
Kyoto Bank 6.813 ★ Gunma Bank 6.614 ★ The Hachijuni Bank 6.515 ★
Chugoku Bank 6.416 The Juroku Bank* 5.4 TBA17 ★ The Toho Bank 5.218
★ Iyo Bank 5.019 Ogaki Kyoritsu Bank 4.920 Senshu Ikeda Holdings*
4.9 Senshu Ikeda Tokai Tokyo Sec Sep-2013
- Tochigi Bank* 2.6 Utsunomiya Sec Apr-2017
Top 20 Regional Banks (by Total Deposits)(As
of March 31, 2018)
Total Bank DepositsJPY55.8 Trillion
★ : Banks having subsidiary securities companies by their own* :
Denotes Tokai Tokyo Financial Holdings’ alliance partners
Alliance with Regional BanksBusiness Focus
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19
High‐net‐worth Business
105
178203
246 267
327679
1,024
1,171 1,290
1,361
1,951
0
500
1,000
1,500
2,000
2,500
0
50
100
150
200
250
300
350
400
450
500
Mar2016
Sep2016
Mar2017
Sep2017
Mar2018
Jun2018
(Billi
on Y
en)
Assets under Custory
Number of Membership
Number of Membership & Assets under Custody(Orque
d’or members)
Assets under Custody(Wealth Management Unit & Premier Executive Advisors)
251 263 284
325 374 392
449
8578 62
78
84 84
46
355 365 367
425
480
532503
0
100
200
300
400
500
600
Sep2015
Mar2016
Sep2016
Mar2017
Sep2017
Mar2018
Jun2018
（B
illion
Yen
)
PEA
Overlap
Wealth Management Unit
Total
Business Focus
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Capital Policy
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21
3.72.6
3.83.72.7
3.2
4.5
2.6
4.24.5
2.93.8
5.2
3.34.1
0123456
FYEMar 2014
FYEMar 2015
FYEMar 2016
FYEMar 2017
FYEMar 2018
1Q FYEMar 2019
(%)
Indicator per Share in Comparison with PeersCapital Policy
17.7
8.9
17.012.6 8.6
12.88.1
4.99.57.8 8.7 8.4
15.5
7.9 8.83.7
0.75.8
0
10
20
30(%)
9.0
87.757.6
99.6
69.561.7
87.1
46.9 36.568.3
45.7 67.3 61.597.3
63.1 66.9
24.16.2
45.8
0
50
100
150(Yen)
54.5
Tokai Tokyo Nomura Daiwa
* EPS and ROE are annualized by multiplying 4 to actual
quarterly figures.
EPS
ROE
Dividend Yield
Mar2014
Mar2015
Mar2016
Mar2017
Mar2018
Shareholders' Equity (million yen) 140,462 154,633 153,089
155,312 172,629Treasury Stock 3,835 3,639 6,390 7,572 6,188
Dividend per Share (yen) 32.00 34.00 28.00 26.00 38.00
Dividend Payout Ratio 36.5 % 48.9 % 59.7 % 56.9 % 39.1 %
DOE (Dividend On Equity ratio) 6.5 % 6.1 % 4.8 % 4.4 % 6.0 %
Dividend Information of TTFH
Indicator per Share in Comparison with Peers
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22
TTFH (Consolidated Basis) (Billion Yen) Mar2016
Mar2017
Mar2018
[Capital in a broad sense] Net Assets+Long-term Bonds &
Long-term Loans of TTFH (non-consolidated)Net Assets 155 157
174Long-term Bonds & Long-term Loans of TTFH (non-consolidated)
2 31 41
(1) 157 188 216[Uses of Capital]
Non-current Assets (Excluding Policy Investments & Net
Investments) 28 39 43Capital Necessary for Operating Securities
Business 99 99 107
(2) 127 139 151(3) Available Capital (1) - (2) 29 49 65
Subtotal
Subtotal
Available CapitalCapital Policy
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23
Capital Policy
Shareholder return
Reserved capital for future growth
- Dividend- Share buyback- Benefit program
Investment in IT/AI
M&A / Capital investment(Bank, broker, FinTech)
Business expansion(Market div., high-net-worth, IFA)
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24
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2007
/4
2008
/4
2009
/4
2010
/4
2011
/4
2012
/4
2013
/4
2014
/4
2015
/4
2016
/4
2017
/4
2018
/4
Tokai Tokyo
Stock Price Trend in Comparison with Nomura and DaiwaStock Price
(Million Yen)Market CapMarket Cap Multiple
0
20
40
60
80
100
120
140
160
180
2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4
2016/4 2017/4 2018/4
Tokai Tokyo
Daiwa
Nomura
(2007/4/1=100)
1.0
6.0
11.0
16.0
21.0
26.0
31.0
2007
/4
2008
/4
2009
/4
2010
/4
2011
/4
2012
/4
2013
/4
2014
/4
2015
/4
2016
/4
2017
/4
2018
/4
Daiwa/Tokai Tokyo
Nomura/Tokai Tokyo
Capital Policy
(X)
-
Business Theme
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26
Environmental Change and New Strategy
Regional revitalization
Social environment change
Fiercer competitionin industry
Work style reforms
Rising interestin investment
Aging societySocial polarization
Digital era
FSAFiduciary duty, Business model, Governance
Business structure change
Business Theme
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27
Management Plan “New Age’s Flag Bearer 5”
Market Div.targeting JPY3B/month
Segmented retail business‐
High‐net‐worth‐Matured‐Mass, MONEQUE
Productivity Revolution
Personnel system reform
Targeting JPY30B
level of ordinary income in the future
Market Div. Retail
Others (IB, affiliates, etc.)
JPY15~20B JPY5~7.5B JPY5~10B
Great Platform
JV (jointly funded sec.)Mid‐size brokers
IFA
Key factors of New Age’s Flag Bearer 5
Business Theme
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28
Consulting(“Mutual fund
concierge”）FinTech
Takagi Sec. / Ace Sec. (IFA)
Retailer Insurance agency
Research(“Fund Labo”)
Internet
IFA network
Securities 3.0
Mobile carrier
TORANOTEC
MONEY DESIGN
[Smartphone trading]
Spare change investment
Life plan
Future plan
Loan
FinTech
Point (mileage)
Payment (settlement)
MONEQUE MONEQUE for regional banks
Robo‐ advisor “THEO”
Small amount investment
Plan for Next GenerationBusiness Theme
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29
Memo
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30
Memo
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Inquiries to be directed to:
Effective April 1, 2009, the Company spun off its financial
instrument operation and Tokai Tokyo Security Co., Ltd. (former
Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it
over. The Group (Tokai Tokyo Financial Group) at the same time
shifted to a holding company system.Effective the same date, the
Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd.
changed their corporate names to Tokai Tokyo Financial Holdings,
Inc., and Tokai Tokyo Securities Co., Ltd. respectively.The result
for the fiscal year ended on March 31, 2009 or any earlier date
account for the operation of the former Tokai Tokyo Securities Co.,
Ltd. under then existing organizational structure.
Corporate Communications DepartmentTEL: +81-3-3517-8618 FAX:
+81-3-3517-8314E-mail: [email protected]
This material is intended to provide information regarding the
Company’s most recent operational result and NOT to solicit
investment in securities issued by the Company.
