Result Review on the 2nd Qtr of Fiscal 2011 that ends in ... · Tokai Tokyo Financial Holdings, Inc. Result Review on the 2nd Qtr of Fiscal 2011 ... Analysis of Financial Results

January 2012

Tokai Tokyo Financial Holdings, Inc.

Result Review on the 2nd Qtr of Fiscal 2011that ends in March 2012

Presentation

Aiming to be “The Premier House”

1

Table of Contents

* Figures used in this material are on a consolidated basis unless otherwise specified.

Market TrendsFinancial Results OverviewAnalysis of Financial Results Operating Revenues SG&A Expenses Others

Key Factors for Achieving TT RevolutionProgress on Each Key Factor Productivity Growth potential Customer loyalty Communication Super Community House

Stringent Attitude under Unforeseeable CircumstancesManagement Focusing PointWhere and what should we be?

　　～The Road to Be a Leading Player in ASIA ～Reference DataInquiries to be Directed to:

2

1. Market TrendsStock Indices of Major Countries Dollar-Yen and Euro-Yen Exchange Rates

75

80

85

90

95

100

105

110

115

120

125

130

11/3/31 11/5/2 11/6/1 11/7/1 11/8/2 11/9/1 11/10/3 11/11/2 11/12/2 12/1/3

JPY/USDJPY/EUR

Dollar-Yen Exchange Rate

RURO-Yen Exchange Rate

(Created by Tokai Tokyo Research Center based on the OUICK data.)

70

75

80

85

90

95

100

105

110

11/3/25 11/4/29 11/6/3 11/7/8 11/8/12 11/9/16 11/10/21 11/11/25 11/12/30

Nikkei Average

DJIA

SSE CompositeDAX

Brazil

India

(Indices are calculated w ith closing price as of end of March 2011 as 100)

(Created by Tokai Tokyo Research Center）

3

2. Financial Results Overview(Million yen)FY2011

1H 2H 1H 2H 1H09.4.109.9.30

09.10.110.3.31

10.4.110.9.30

10.10.111.3.31

11.4.111.9.30

FY 20102H = 100

FY 20101H = 100

Operating revenue 30,125 28,374 25,188 27,214 25,125 92 100SG&A expenses 23,361 23,232 23,406 24,288 23,490 97 100Operating income 6,080 4,435 993 2,095 778 37 78Non-operating income 832 1,038 920 1,150 1,008 88 110Non-operating expenses 165 213 169 184 155 84 92Ordinary income 6,747 5,261 1,744 3,061 1,631 53 94Extraordinary gains 53 73 813 74 58 78 7Extraordinary losses 250 104 1,162 168 1,246 742 107Income before tax 6,550 5,229 1,395 2,968 442 15 32Total income taxes 2,781 1,836 -954 989 79 8 -Net income 3,766 3,394 2,342 1,976 357 18 15

Year onYear

Comparison w ithprevious 2H

FY2009 FY2010

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1H 2H 1H 2H 1H

FY2009 FY2010 FY2011

Operating revenue, Ordinary income

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Income before tax, Net income

Operating revenueOrdinary incomeIncome before taxNet income

(Million yen) (Million yen)

4

A. Operating Revenues

(1) Diversified products and businesses

a. Foreign stocks

b. Foreign currency bonds andstructured bonds

c. Straight bonds

d. Derivatives

(2) Achievements under implementedmarketing strategy

a. Focus on home market

b. Enhance measures forhigh net-worth customers

c. Improve productivity by expanding the operational capacity of branches

d. Expand products and increasecustomers by the Corporate Sales activities

B. SG&A Expenses

(1) Personnel expenses

(2) System cost

(3) Others

C. Others

(1) Stable non-operating income and 　　　　losses

(2) Large losses on evaluation ofsecurities

3. Analysis of Financial Results

5

Growth potentialGrowth potential

CommunicationCommunication

Customer loyaltyCustomer loyalty Super CommunitySuper CommunityHouseHouse

ProductivityProductivity

TT RevolutionTT Revolution

Blue Ocean StrategyBlue Ocean Strategy M&A StrategyM&A Strategy

TT Revolution (April 2009 to March 2012)TT Revolution (April 2009 to March 2012)

4. Key Factors for Achieving TT Revolution

6

(1) Productivity

a. Improve productivity of

younger sales staff

b. Improve efficiency in non-revenue

generating divisions

c. Improve profitability of dealing

　　　 business

d. Uplift earnings capability of the

Toyota Business Unit

(2) Growth potential

a. Alliance strategy

b. M&A strategy

(3) Customer loyalty

a. Utilize data from customer loyalty surveys

(4) Communication

a. Foster corporate culture

・ Enhance transparency

・ Response to corporate misconduct

b. Proper delivery of market information to customers

(5) Super Community House

a. Hold seminars, events, etc.

b. Activities in Nagoya area(CSR-related activities)

5. Progress on Each Key Factor

7

Risk control

Efficient management Diversity

Capital base and financial strength

6. Stringent Attitude under Unforeseeable Circumstances

8

7. Management Focusing Point

Promotion of strategic goals

Diversificationof products

and businesses

Reduction in costs, assets

and businesses

Adverse EnvironmentAdverse Environment

Depressed Market

Depressed Market

“Risk Off”attitudes

“Risk Off”attitudes

Overvalued yenOvervalued yen RegulatoryconstraintsRegulatoryconstraints

9

２．Community & the Middle１．Expertise

３．Alliance & Platform ４．Humanity ５．Risk

Management

Professional know-howFocus on

home-field market

Strong product development and distribution capability

An organization that respects and cares personality

Organization builtto execute strategy

Further strengthen our unique resources that differentiate us from the pack

Grow as a unique financial group

8. Where and what should we be? ～The Road to Be a Leading Player in ASIA ～

Reference Data

Financial Results Overview

12

(Created by Tokai Tokyo Financial Holdings, Inc. based on earnings materials of each company)◎： Bank-affiliated securities firm

△： Internet-based securities firm

*1: U.S. GAAP based

*2:　Non-consolidated figures

(Billion yen)

Securities Companies OperatingRevenue

OperatingIncome

OrdinaryIncome Net Income

1 ◎ SMBC Nikko Securities 123.6 21.5 21.8 10.72 △ SBI Securities 20.3 4.0 4.0 3.23 △ Matsui Securities 9.0 3.7 3.8 2.24 ◎ SMBC Friend Securities 22.3 3.1 3.6 2.25 △ Rakuten Securities 10.4 1.9 2.1 1.86 △ Monex Group 14.5 1.7 1.8 1.07 △ kabu.com Securities *2 6.5 1.6 1.6 0.88 Tokai Tokyo Financial Holdings 25.1 0.8 1.6 0.49 Kyokuto Securities 3.2 0.5 0.6 0.3

10 ◎ Mizuho Investors Securities 23.0 0.5 0.6 -0.511 INVAST Securities *2 1.7 0.2 0.2 0.312 Ichiyoshi Securities 7.3 0.0 0.0 0.013 Toyo Securities 6.1 -0.3 -0.0 -0.314 Kosei Securities *2 0.2 -0.4 -0.2 -0.215 Okasan Securities Group 28.6 -0.4 0.1 -0.716 Aizawa Securities 4.3 -0.7 -0.4 0.017 Marusan Securities 7.1 -0.7 -0.4 -0.417 Maruhachi Securities *2 1.3 -0.7 0.1 0.119 Takagi Securities 2.6 -0.7 -0.6 -3.120 Mito Securities *2 4.7 -0.7 -0.6 -0.821 Iwai Cosmo Holdings 8.5 -1.8 -1.5 -1.922 ◎ Mitsubishi UFJ Securities Holdings 152.8 -7.9 17.7 16.423 Nomura Holdings *1 804.9 -10.3 -10.3 -28.324 Daiwa Securities Group Inc. 216.1 -13.0 -7.2 -28.825 ◎ Mizuho Securities 117.9 -22.0 -21.0 -26.7

1H of FY2011 (April 2011 - September 2011)

Financial Results Ranking of Securities Firms (Operating Income Basis)

2. Financial Results Overview

Analysis of Financial Results

14

Breakdown by Product (1st half of FY ending March 2012)

* Excluding equity dealings and bond dealings

3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businesses

(Million yen)

BrokerageCommissions

Commissions forUnderwriting,

Sales, theSolicictation of

Sales forSpecific

Investors, andOthers

Commissions forSubscription,

Distribution, theSolicitation of

Sales forSpecific

Investors, andOthers

OtherCommissions

Trading Profitand Loss for

Stocks

Trading Profitand Loss forBonds and

Forex

Total

Domestic 2,763 55 0 35 12 0 2,866

Foreign 126 0 0 0 3,956 0 4,083

Domestic 8 91 3 8 0 306 419

Foreign andStructured 0 2 0 0 0 5,087 5,090

25 0 5,456 2,378 0 0 7,860

0 0 0 664 0 2,339 3,003

2,924 149 5,460 3,087 3,969 7,733 23,324Total

Investment Trusts

Other

Stocks

Bonds

Commissions and Trading Profit and Loss (Consolidated)

15

Breakdown by Product

* Excluding equity dealings and bond dealings

(Million yen)

% % % % %

Domesitic 6,785 24.8% 4,372 17.1% 3,335 14.2% 4,510 17.7% 2,866 12.3%

Foreign 2,489 9.1% 3,049 11.9% 3,139 13.4% 5,385 21.2% 4,083 17.5%

Domesitic 777 2.8% 559 2.2% 598 2.5% 52 0.2% 419 1.8%

Foreign andStructured 9,959 36.4% 9,621 37.6% 6,303 26.8% 6,796 26.7% 5,090 21.8%

7,932 29.0% 9,380 36.7% 8,233 35.0% 7,769 30.5% 7,860 33.7%

-556 - -1,417 - 1,898 8.1% 923 3.6% 3,003 12.9%

27,388 100.0% 25,564 100.0% 23,509 100.0% 25,436 100.0% 23,324 100.0%

FY 2009

2H 1H

FY 2011FY 2010

1H 2H 1H

Total

Investment Trusts

Other

Stocks

Bonds

3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businessesCommissions and Trading

Profit and Loss (Consolidated)

16

Diversified Product Lineup

Foreign stocks

Other

Foreign bondsStructured bonds

Investment trusts

Domestic bonds

Foreign bondsStructured bonds

Investment trusts

Foreign stocks

OtherDomestic stocks

Domestic stocks

FY ended March 2010

Domestic bonds

FY ending March 2012

Revenue Share Shift in Product Categories

3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businesses

17

Percentage of Revenues from Foreign StocksRevenues from Foreign Stocks

3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businessesa. Foreign stocks

0

500

1,000

1,500

2,000

2,500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

* Numeric data on this slide was extracted from the internal managerial records of Tokai Tokyo Securities Co., Ltd.

Revenues from Foreign Stocks (Retail)

18

(No. of times)

Lecture meetings 16 33 21 18 46 67 85 73 93 90Study meetings 39 41 39 47 64 72 131 75 76 45Total 55 74 60 65 110 139 216 148 169 135

1Q 2Q

FY 2010 FY 2011

1Q 2Q 3Q 4Q

FY 2009

1Q 2Q 3Q 4Q

0

20

40

60

80

100

120

140

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY 2009 FY 2010 FY 2011

Lecture meetingsStudy meetings

(No. of times)



Lecture Meetings on Foreign Stocks,and Internal Study Meetings

19

Foreign Stocks

* Numeric data on this slide represent those for Tokai Tokyo Securities.Composition ratio of commissions for foreign stocks by country were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.

(Million yen, Accounts)

FY 2011Comparison with

Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Revenue from Foreign Stocks 1,138 1,318 1,612 1,264 1,206 1,808 3,050 2,075 2,220 2,118 4,338 85 144Foreign Equity Assets under Custody 22,000 24,800 29,700 30,700 30,300 37,100 43,411 48,224 48,958 42,581 42,581 88 115Number of Foreign Equity Accounts 12,941 13,440 14,379 14,690 17,537 18,534 19,952 22,493 26,596 29,978 29,978 133 162

FY 2011FY 2010FY 2009

Composition Ratio of Revenue from Foreign Stocks by Country of Origin

FY 2011

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H

US/European Stocks 15.7% 14.7% 25.1% 29.0% 63.3% 48.5% 37.4% 71.2% 72.2% 88.6% 80.4%Hong Kong Stocks 82.1% 80.7% 37.6% 37.4% 18.0% 25.8% 27.8% 14.0% 16.0% 7.1% 11.6%Brazilian ADR 1.7% 1.0% 29.4% 24.9% 10.6% 4.6% 9.5% 2.3% 1.4% 0.5% 1.0%Indian ADR 0.5% 3.6% 7.9% 8.7% 8.1% 21.1% 25.4% 12.5% 10.3% 3.7% 7.0%

FY 2011FY 2010FY 2009

Revenue Relating to Foreign Stocks

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY 2009 FY 2010 FY 2011

(Million yen)


20

Enhanced information deliveries now available from overseas subsidiaries and business partners

Daily Interval; 20 web magazines are sent daily, including Daily Current News on European Market, Hong Kong China Evening Comments, etc.

Weekly; 16 web magazines are sent weekly, including U.S. Stock Investment Strategy, Global Watch, etc.

Monthly; 5 web magazines are sent monthly, including Video on European, South African and Turkish Economies, Dream List, etc.

Non-regular; Approximately 20 web magazines are sent on as-needed basis, including Information on Individual Stocks, U.S. Stocks Strategy Report, etc.

Enhanced information deliveries now available from overseas subsidiaries and business partners

Daily Interval; 20 web magazines are sent daily, including Daily Current News on European Market, Hong Kong China Evening Comments, etc.

Weekly; 16 web magazines are sent weekly, including U.S. Stock Investment Strategy, Global Watch, etc.

Monthly; 5 web magazines are sent monthly, including Video on European, South African and Turkish Economies, Dream List, etc.

Non-regular; Approximately 20 web magazines are sent on as-needed basis, including Information on Individual Stocks, U.S. Stocks Strategy Report, etc.


Information Tools to Promote Foreign Stock Investments Sales

21

(Million yen)

FY2011Comparison w ith

Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Bonds in foreign currencies 18,633 21,396 23,460 28,546 25,973 24,651 26,748 27,207 31,160 21,384 52,544 97 104 US Dollar 330 706 224 1,177 1,379 141 251 326 2,248 3,716 5,964 1,033 392 Australian Dollar 188 3,698 2,669 4,425 6,637 15,803 11,416 4,937 3,227 3,609 6,836 42 30 New Zealand Dollar 6,879 7,084 4,279 5,264 3,051 399 3,276 567 374 676 1,050 27 30 Euro 1 633 62 13 66 1 1 11 15 13 28 227 42 South African Rand 11,230 4,822 11,184 819 1,984 3,065 7,003 15,113 12,068 6,799 18,867 85 374 Turkish Lira 4,453 2,423 41 5,854 5,063 10,917 26,849 - Brasilian Real 2,619 16,848 12,856 5,242 4,801 4,189 3,349 1,494 4,843 54 27 Mexican Peso 2,023 4,025 14 4,039 200 -Structured bonds 38,251 35,245 31,057 40,128 42,080 52,481 17,999 27,184 17,833 16,442 34,275 76 36 Interest rate and foreign exchange-linked

3,792 3,711 4,078 12,373 8,478 30,147 6,265 7,585 7,308 7,630 14,938 108 39

Interest rate and foreign exchange-linked, publicly offered

0 6,022 6,022 - -

Equity-linked 25,010 22,960 18,735 23,061 25,903 11,764 5,587 16,941 5,350 2,790 8,140 36 22 Equity-linked, publicly offered 9,449 8,574 8,244 4,694 7,699 10,570 6,147 2,659 5,175 0 5,175 59 28Total sales 56,884 56,641 54,517 68,674 68,053 77,132 44,747 54,392 48,993 37,826 86,819 88 60

FY2011FY2009 FY2010

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Bonds in foreign currenciesStructured bondsTotal sales

(Million yen)


3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businessesb. Foreign currency bonds and

structured bonds

Sales of Foreign Currency Bonds and Structured Bonds

22

Source: Thomson Reuters 　The rankings were created by Tokai Tokyo Financial Holdings, Inc. based on the data of DealWatch, a service provided by Thomson Reuters.

FY2010 Domestic SB Lead Manager

Rank Company # ofDeals

Amount(Milion yen) Share (%)

1 Nikko Cordial Securities 163 1,902,169 19.4

2 Mizuho Securities 187 1,887,482 19.2

3 Nomura Securities 171 1,876,838 19.1

4 Mitsubishi UFJ Morgan Stanley Securities 163 1,867,361 19.0

5 Daiwa Securities Capital Markets 159 1,518,034 15.4

6 Goldman Sachs 20 220,984 2.3

7 Merrill Lynch Japan Securities 19 197,997 2.0

8 Tokai Tokyo Securities 8 73,750 0.8

9 BNP Paribas Securities 9 63,667 0.7

10 Citigroup Global Markets 7 57,497 0.6

11 UBS Securities 8 47,577 0.5

12 Deutsche Securities 5 29,167 0.3

13 ＳＢＩ Securities 1 21,667 0.2

14 Shinkin Securities 2 16,000 0.2

15 Okasan Securities 2 12,500 0.1

15 Credit Suisse 2 12,500 0.1

17 Barclays Capital 2 10,933 0.1

18 JP Morgan Securities 1 10,000 0.1

19 Mizuho Investors Securities 1 4,000 0.0

FY2011 1H Domestic SB Lead Manager

Rank Company # ofDeals

Amount(Milion yen) Share (%)

1 Mitsubishi UFJ Morgan Stanley 70 932,984 24.6

2 Mizuho Securities 62 808,667 21.3

3 Nomura Securities 73 661,551 17.4

4 SMBC Nikko Securities 60 612,928 16.2

5 Daiwa Securities Capital Markets 65 487,450 12.9


7 Citigroup Global Markets 6 54,833 1.5

8 Merrill Lynch japan Securities 5 44,167 1.2


9 JP Morgan Securities 4 26,667 0.7




14 UBS Securities 1 7,500 0.2



3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businessesc. Straight bonds

Domestic Corporate Bond League Table

23

Source: Thomson Reuters 　The rankings were prepared by Tokai Tokyo Financial Holdings, Inc. based on the data of DealWatch, a service provided by Thomson Reuters.

FY2010 Domestic Local Government Bond Lead Manager

Rank Company# of

DealsAmount

(Milion yen) Share (%)



3 Goldman Sachs 28 201,599 15.3



6 Nikko Cordial Securities 18 107,137 8.1






12 Morgan Stanley MUFG 2 8,325 0.6

13 SMBC Friend Securities 1 6,667 0.5




FY2011 1H Domestic Local Government Bond Lead Manager

Rank Company# of

DealsAmount

(Milion yen) Share (%)





5 SMBC Nikko Securities 7 43,308 7.7






11 Morgan Stanley MUFG 1 5,000 0.9





3. Analysis of Financial ResultsA. Operating Revenues(1) Diversified products and businessesc. Straight bonds

Local Government Bond League Table

24

Revenue by Region

Number of Accounts by Region

Assets under Custody by Region

* Numeric data on this slide were extracted from the internal managerial record ofTokai Tokyo Securities Co., Ltd.

(Million yen)


Previous 2HYear on

Year

Eastern Japan 2,510 2,600 2,479 2,357 2,436 1,834 2,184 2,118 2,074 1,933 4,008% 25.1% 25.1% 24.9% 25.3% 25.2% 24.7% 24.9% 24.7% 24.5% 24.3% 24.4%

Central Japan 5,395 5,618 5,443 5,097 5,402 4,177 4,848 4,809 4,759 4,475 9,234% 54.0% 54.2% 54.8% 54.7% 55.9% 56.2% 55.3% 56.0% 56.1% 56.3% 56.2%

Western Japan 2,082 2,142 2,015 1,856 1,825 1,425 1,727 1,659 1,643 1,541 3,184% 20.8% 20.7% 20.3% 19.9% 18.9% 19.2% 19.7% 19.3% 19.4% 19.4% 19.4%

Total 9,987 10,360 9,938 9,309 9,663 7,436 8,759 8,586 8,476 7,949 16,425 95 96

FY2010

3Q 4Q

94

96

98

FY2009

94

93

96

1Q 2Q 3Q 4Q 1Q 2Q 2Q1Q FY20102H = 100

FY20101H = 100

FY2011

1H

(Accounts)


Previous 2HYear on

Year

Eastern Japan 93,514 93,946 93,604 93,342 122,015 121,757 121,568 121,480 120,849 119,987 119,987% 24.8% 24.8% 24.8% 24.8% 25.5% 25.5% 25.5% 25.5% 25.5% 25.4% 25.4%

Central Japan 210,890 212,432 211,937 211,437 277,251 277,541 277,637 277,019 275,720 275,260 275,260% 56.0% 56.2% 56.2% 56.3% 57.9% 58.2% 58.2% 58.2% 58.2% 58.3% 58.3%

Western Japan 72,335 71,945 71,435 70,982 79,713 77,579 78,203 77,743 77,432 76,965 76,965% 19.2% 19.0% 18.9% 18.9% 16.6% 16.3% 16.4% 16.3% 16.3% 16.3% 16.3%

Total 376,739 378,323 376,976 375,761 478,979 476,877 477,408 476,242 474,001 472,212 472,212 99 99

FY2010

3Q 4Q

99

99

99 99

99

99

FY2009

1Q 2Q 3Q 4Q 1Q 2Q FY20102H＝100

FY20101H＝100

FY2011

1Q 2Q 1H

Revenue by Region

0

2,000

4,000

6,000

8,000

10,000

12,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)Western JapanCentral JapanEastern Japan

Number of Accounts by Region

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Accounts)Western JapanCentral JapanEastern Japan

Assets under Custody by Region

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Western JapanCentral JapanEastern Japan

(Million yen)

(Million yen)


Previous 2HYear on

Year

Eastern Japan 533,131 535,483 537,256 556,535 535,121 540,588 554,002 556,436 547,264 485,876 485,876% 24.3% 24.3% 24.3% 24.2% 23.8% 23.7% 24.4% 24.5% 24.4% 24.5% 24.5%

Central Japan 1,238,814 1,247,743 1,259,718 1,312,033 1,323,317 1,348,496 1,323,091 1,317,541 1,302,184 1,151,369 1,151,369% 56.6% 56.7% 56.9% 57.0% 58.9% 59.2% 58.2% 57.9% 58.1% 58.1% 58.1%

Western Japan 417,591 417,585 417,510 432,595 387,787 387,723 395,823 400,522 391,896 344,749 344,749% 19.1% 19.0% 18.9% 18.8% 17.3% 17.0% 17.4% 17.6% 17.5% 17.4% 17.4%

Total 2,189,537 2,200,811 2,214,484 2,301,163 2,246,225 2,276,807 2,272,916 2,274,499 2,241,344 1,981,994 1,981,994 87 87

1Q

85

8986

87

87

FY2009 FY2010

90

1Q 2Q 3Q 4Q FY20102H＝100

FY20101H＝100

1Q 2Q 2Q3Q 4Q

FY2011

1H

3. Analysis of Financial ResultsA. Operating Revenues(2) Achievements under implemented

marketing strategya. Focus on home market

Revenue and Number of AccountsAttained by Each Region (Retail)

25

Customer Distribution


Number of Customers


Previous 2H Year on Year

High Wealth 1,281 1,293 1,310 1,420 1,159 1,167 1,283 1,317 1,271 1,016 1,016 77 87％ 0.3% 0.3% 0.3% 0.4% 0.2% 0.2% 0.3% 0.3% 0.3% 0.2% 0.2% - -

Wealth 11,208 11,368 11,622 12,397 10,521 10,687 11,326 11,378 11,021 8,888 8,888 78 83％ 2.9% 2.9% 3.0% 3.2% 2.1% 2.2% 2.4% 2.4% 2.3% 1.9% 1.9% - -

Middle 93,370 93,253 93,175 95,309 95,786 94,593 96,287 96,348 94,950 87,666 87,666 91 93％ 23.9% 23.8% 23.9% 24.5% 19.5% 19.8% 20.2% 20.2% 20.0% 18.6% 18.6% - -

General 284,666 285,963 284,114 279,153 383,963 371,430 368,512 367,199 366,759 374,642 374,642 102 101％ 72.9% 73.0% 72.8% 71.9% 78.1% 77.7% 77.2% 77.1% 77.4% 79.3% 79.3% - -

Total 390,525 391,877 390,221 388,279 491,429 477,877 477,408 476,242 474,001 472,212 472,212 99 99

FY2009

3Q 4Q

FY2010

1Q 2Q 3Q 4Q FY20101H = 100

FY20102H = 1001H1Q1Q 2Q

FY2011

2Q

Assets under Custody(Million yen)



High Wealth 261,490 264,094 266,932 286,991 242,321 247,037 265,402 265,266 265,862 216,225 216,225 82 88％ 11.8% 11.9% 11.9% 12.3% 10.9% 11.1% 11.6% 11.6% 11.8% 10.8% 10.8% - -

Wealth 529,310 536,750 549,047 588,021 497,451 504,814 536,308 537,904 520,468 417,249 417,249 78 83％ 23.9% 24.1% 24.5% 25.3% 22.3% 22.8% 23.4% 23.5% 23.1% 20.8% 20.8% - -

Middle 1,084,966 1,085,345 1,087,857 1,117,925 1,095,503 1,085,702 1,110,276 1,112,315 1,093,621 986,987 986,987 89 91％ 49.0% 48.8% 48.6% 48.1% 49.1% 48.9% 48.4% 48.5% 48.5% 49.3% 49.3% - -

General 339,495 338,014 333,775 331,669 393,852 380,995 379,682 377,420 375,627 381,279 381,279 101 100％ 15.3% 15.2% 14.9% 14.3% 17.7% 17.2% 16.6% 16.5% 16.7% 19.0% 19.0% - -

Total 2,215,260 2,224,203 2,237,611 2,324,605 2,229,128 2,218,547 2,291,668 2,292,908 2,255,578 2,001,740 2,001,740 87 90

FY2009

4Q3Q2Q1Q 2Q2Q1Q FY20101H = 100

FY20102H = 1001H

FY2010

1Q

FY2011

3Q 4Q

Commissions(Million yen)



High Wealth 681 785 598 738 744 436 567 603 546 473 1,019 87 86％ 7.2% 7.4% 6.2% 7.5% 7.6% 5.9% 6.2% 6.7% 6.4% 5.6% 6.0% - -

Wealth 2,600 2,933 2,665 2,657 2,669 1,803 2,364 2,420 2,311 2,049 4,360 91 97％ 27.5% 27.8% 27.6% 26.9% 27.3% 24.2% 26.1% 26.8% 27.3% 24.2% 25.8% - -

Middle 5,108 5,718 5,343 5,331 5,272 4,177 5,069 4,961 4,656 4,794 9,450 94 100％ 54.1% 54.2% 55.3% 54.0% 53.9% 56.1% 55.9% 55.0% 55.0% 56.7% 55.9% - -

General 1,048 1,115 1,060 1,142 1,102 1,025 1,066 1,043 951 1,138 2,089 99 98％ 11.1% 10.6% 11.0% 11.6% 11.3% 13.8% 11.8% 11.6% 11.2% 13.5% 12.3% - -

Total 9,437 10,551 9,667 9,869 9,787 7,441 9,067 9,027 8,464 8,454 16,918 94 98

2Q1Q

FY2009

1Q 2Q FY20102H = 100

FY20101H = 100

3Q 4Q 1Q 2Q 3Q 4Q 1H

FY2010 FY2011

Number of Customers

Wealth1.9%

High Wealth0.2%

General79.3%

Middle18.6%

Assets under Custody

Middle49.3%

Wealth20.8%

Geneal19.0%

High Wealth10.3%

Commissions

Wealth25.8%

High Wealth6.0%

Middle55.9%

General12.3%

High Wealth: Holding over 100 million yen in assets under custody

Wealth: 30 million to 100 million yen

Middle: 5 million to 30 million yen

General: less than 5 million yen


marketing strategyb. Enhance measures for high

net-worth customersCustomer Distribution (Retail)

26* Numeric data on this slide was extracted from the internal managerial records of Tokai Tokyo Securities Co., Ltd.

Trend of opening new customer accounts offinancial asset of 30 million yen or more

0

50

100

150

200

250

300

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.

FY2010 FY2011

(Accounts)


marketing strategyb. Enhance measures for high

net-worth customersTrends in New Customer Accounts


Shares of larger branches inthe retail total revenues and overall sales

33.0%

34.0%

35.0%

36.0%

37.0%

38.0%

39.0%

40.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Total RevenuesOverall Sales


marketing strategyc. Improve productivity by expanding

the operational capacity of branchesContribution by Larger Branches


Shares of the three larger branches inthe retail total revenues

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Nagoya BranchShibuya BranchTokyo Sales Division

Shares of the three larger branches inthe retail overall sales

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Nagoya BranchShibuya BranchTokyo Sales Division


marketing strategyc. Improve productivity by expanding

the operational capacity of branchesContribution by Larger Branches

29

　 Percentage of Revenue made by Corporate Assets Division against the Total Revenue ofInvestment Banking B.U.

Revenues Trends in Corporate 　 Assets Division


0

100

200

300

400

500

600

700

800

900

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY 2009 FY 2010 FY 2011

(Million yen)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY 2009 FY 2010 FY 2011


marketing strategyd. Expand products and increase customers

by the Corporate Sales activities

Revenues Trends in Corporate Assets Division (Investment Banking B.U.)

30

Corporate Assets Division Revenue


(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Corporate Assets Division 697 693 671 772 523 512 540 575 552 643 1,195 107 115Domestic stocks 172 158 156 171 151 121 152 212 137 145 282 78 104Bonds 440 436 365 388 315 308 233 263 272 290 562 113 90

331 294 217 261 211 187 159 150 198 184 382 124 96Structured, exchangeable bonds 109 141 147 127 103 121 74 113 74 106 180 96 80

Investment trusts 46 58 69 57 31 37 28 33 47 80 127 209 187Derivatives 10 6 16 70 12 35 119 58 86 120 206 116 438Others 27 32 63 84 13 9 7 9 10 7 18 108 81

Government bonds,

FY2011FY2009 FY2010




Revenues Trends in Corporate Assets Division (Investment Banking B.U.)


7,000

7,500

8,000

8,500

9,000

9,500(Accounts)

7,888 8,003 7,998 8,138 8,740 8,828 8,953 9,043 9,171 9,240

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011



by the Corporate Sales activitiesCorporate Accounts

32

Corporate Products Division Revenue by Department


Total Revenues (Million yen)

FY2011

1H 2H 1H 2H 1H

Equity Dept. 88 195 270 692 299

Bond Dept. 337 225 345 -183 203

Structured Products Sales Dept. 0 0 0 0 0

Financial Markets Dept. 3,283 2,743 1,875 1,539 2,090

Market Development Dept. 0 0 0 0 0

Asian Equity Marketing Dept. - - 999 150 93

US & European Equity Marketing Dept. - - 1 1,370 1,067

Foreign Stocks Sales Promotion Dept. 484 695 - - -

Market Dealing Dept. - - - - 139

Product Management Dept. 21 15 - - -

Other 0 0 0 0 0

Division Total 4,213 3,873 3,491 3,569 3,891

FY2010FY2009




Revenue by Department, Corporate Products Division (Investment Banking B.U.)

33

(Million yen)FY2011

1H 2H 1H 2H 1HPersonnel expenses 12,278 11,804 11,293 11,677 11,327

Directors' compensation 284 296 291 304 312Employees' salary 6,787 6,702 6,978 6,744 6,718

*Compensation for commission-based salespersons 277 217 171 222 127

Other compensation and salary 327 341 316 404 386Retirement benefits 48 8 13 22 19Welfare expenses 1,565 1,399 1,410 1,483 1,656

* Provision for accrued bonuses 2,324 2,038 1,511 1,814 1,513

*Provision for accrued bonuses fordirectors and exective officers 0 139 0 83 0

Retirement benefit expenses 662 661 600 598 592

Fixed personnel expenses 9,675 9,409 9,610 9,557 9,686Variable personnel expenses (*) 2,602 2,395 1,682 2,120 1,640

FY2009 FY2010

3. Analysis of Financial ResultsB. SG&A Expenses(1) Personnel expensesTrends in Personnel Expenses

34

(Million yen)

Investments

Annual cost (includingdepreciation and amortization)

System investments and annual costsFY2006

3,134 1,946

8,113

90

4,2716,150

4,343

7,316

883

7,546

FY2007 FY2011 1HFY2010

2,503

8,296

FY FY2009FY2008

3. Analysis of Financial ResultsB. SG&A Expenses(2) System costTrends in System Cost

35

Advertisements placed for driving the 10th Anniversary and for driving Customer Loyalty Initiative through media. Expenses increased by 45% from 1H of FY 2010 in 2H of FY 2010.

Advertisements on media (Television and radio commercials): Expenses decreased by 87% from 2H of FY 2010 to 1H in FY 2011.

Other event promotional costs, etc. (Wine parties, Golden Life Stage): Decreased by 26% from 2H of FY 2010 in 1H of FY 2011.

Advertisements placed for driving the 10th Anniversary and for driving Customer Loyalty Initiative through media. Expenses increased by 45% from 1H of FY 2010 in 2H of FY 2010.

Advertisements on media (Television and radio commercials): Expenses decreased by 87% from 2H of FY 2010 to 1H in FY 2011.

Other event promotional costs, etc. (Wine parties, Golden Life Stage): Decreased by 26% from 2H of FY 2010 in 1H of FY 2011.

　Trends in Advertising Cost (Non-consolidated basis)


(Million yen)FY 2011

1H 2H 1H 2H 1HSignboard expenses 30 64 42 51 78Media advertising expenses 95 91 113 164 21Publishing expenses 60 34 44 72 28Other event expenses 102 69 150 159 118Total advertising expenses 287 258 349 446 246

FY 2009 FY 2010

3. Analysis of Financial ResultsB. SG&A Expenses(3) OthersOthers

Progress on Each Key Factor


0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

1H of 1st-yearemployees


1H of 2nd-yearemployees


1H of 3rd-yearemployees


Those who joined in 2006Those who joined in 2007Those who joined in 2008Those who joined in 2009Those who joined in 2010

Growth during three years after joining the company(Performance comparison with mid-career sales staff

regarding attained net increase in assets)

5. Progress on Each Key Factor(1) Productivity

a. Improve productivity of younger sales staffImprovement of Young Sales Staff


0.00%

20.00%

40.00%

60.00%

80.00%







Those who joined in 2006Those who joined in 2007Those who joined in 2008Those who joined in 2009Those who joined in 2010

Growth during three years after joining the company(Comparison with mid-career sales staff of total commissions)


a. Improve productivity of younger sales staffImprovement of Young Sales Staff

39

Improve the ratio of direct and indirect costs

Start transferring personnel from indirect areas of operations to the direct ones

Enhance the support infrastructure (training programs, information, sales activity tools, etc.)

Improve the ratio of direct and indirect costs

Start transferring personnel from indirect areas of operations to the direct ones

Enhance the support infrastructure (training programs, information, sales activity tools, etc.)


b. Improve efficiency in non-revenue generating divisions

Efficiency of Non-RevenueGenerating Divisions

40

Dealing Earnings

* Dealing Division was integrated into the Corporate Products Division in the 1st Quarter of FY ending March 2012.


(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Stock Proprietary Trading 1,230 280 713 700 15 -3 154 137 119 -23 95 33 792Bond Proprietary Trading 10 25 29 -14 30 50 18 22 25 19 44 109 55Proprietary Trading Profit/Loss 1,242 306 744 685 46 46 173 159 143 -5 139 42 151

FY2011FY2010FY2009

-200

0

200

400

600

800

1,000

1,200

1,400

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Stock Proprietary TradingBond Proprietary TradingProprietary Trading Profit/Loss

(Million yen)


c. Improve profitability of dealingbusiness

Earnings from Dealing Division (Investment Banking B.U.)

41

Characteristics in operations

Expansion of product line for retail transactions

Emphasis on meeting corporate financing need

Improvement in operational efficiency

Personnel sharing between both companies

System integration

Characteristics in operations

Expansion of product line for retail transactions

Emphasis on meeting corporate financing need

Improvement in operational efficiency

Personnel sharing between both companies

System integration


d. Uplift earnings capability of theToyota Business Unit

Benefits of Integration with Toyota Financial Services Securities

42

YM Securities

In October 2011, we established a “Mizonokuchi Branch,” our first branch in Kawasaki City, sharing the office space with the Mizonokuchi Branch of the Bank of Yokohama. We plan to open a “Consulting Booth” in Kamakura Branch of Bank of Yokohama in November 2011, in order to offer more customers services of higher value. Under the plan, we will have 15 branches in total.Accelerated hiring of mid-career personnel and the newly-graduated to seek diversification in human resources.

Hamagin Tokai Tokyo Securities

Despite the harsh market environment troubled by sluggish stock prices and the rising yen, etc., they managed to increase operating revenue by 113% year-on-year. Customer base has expanded steadily to exceed 45,000 accounts. We will further expand the customer base by enhancing business in the Hiroshima Area.

Nishi-Nippon City Tokai Tokyo Securities

Following the opening of Kurume Branch in June 2011, Iizuka Branch will be established in November, now having seven branches overall. Three more branches will be opened to enhance the branch network in Fukuoka Prefecture in the near future. The company is planning to further cultivate high net-worth customers by increasing the staff in the PEA (Private Executive Advisor) Office.

(September 30, 2011)Assets under custody

(Million yen)Accounts Sales outlets Employees

293,135 45,769 14 156



185,241 38,551 13 218



59,879 10,749 6 89

5. Progress on Each Key Factor(2) Growth potential

a. Alliance strategyAlliances

43

0

50

100

150

200

250

FY20072H

FY20081H

FY20082H

FY20091H

FY20092H

FY20101H

FY20102H

FY20111H

Nishi-Nippon City TT SecuritiesHamagin TT SecuritiesYM Securities

(Billion yen)


a. Alliance strategyTrading Volume of Tokai Tokyo Securities with Joint Venture Securities Firms

44

0

100

200

300

400

500

600

08/3/31 08/9/30 09/3/31 09/9/30 10/3/31 10/9/30 11/3/31 11/9/30


(Billion yen)


a. Alliance strategyTrend in Assets under Custody at Join Venture Securities Firms

45

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

08/3/31 08/9/30 09/3/31 09/9/30 10/3/31 10/9/30 11/3/31 11/9/30


(Accounts)


a. Alliance strategyTrend in the Number of Accounts atJoint Venture Securities Firms

46

(Million yen)FY2007 FY2008 FY2009 FY2010 FY2011 1H

Allocated investment gainassessed on equity method －－ 384 492 203

Allocated investment lossassessed on equity method △ 101 △ 543 － △ 139 △ 34

Transctions revenue, etc. fromthem 3 247 1,076 1,323 708

Net resulted benefits △ 98 △ 296 1,460 1,676 877


a. Alliance strategyBenefits Realized from Joint Venture Securities Firms

47

As of March 31, 2011

(As of December 31, 2010 only for The 77 Bank, Ltd.)

: Financial institutions that are Tokai Tokyo Financial Holdings’ alliance partners*

Top 20 Regional Banks in Japan in Terms of Bank Deposits

Blue Ocean Strategy

★：Securitas firm of which is a subsidiary

▲：Securities firm of which is an equity method affiliate

(Created by Tokai Tokyo Financial Holdings, Inc. based on earnings materials of each company)

(Billion yen)Rank Name of Institution Deposit Balance

1 The Bank of Yokohama 10,7252 ▲ Fukuoka Financial Group 10,3743 Hokuhoku Financial Group 9,3474 ★ The Chiba Bank 9,1045 Yamaguchi Financial Group 7,4346 ★ The Shizuoka Bank 7,3577 ★ Joyo Bank 6,8058 Sapporo Hokuyo Holdings 6,7319 The Nishi-Nippon City Bank 6,451

10 Bank of Kyoto 5,87311 ★ The Hachijuni Bank 5,56212 ★ The Hiroshima Bank 5,55913 The Gunma Bank 5,51214 ★ The Chugoku Bank 5,22015 The 77 Bank 5,13316 The Juroku Bank 4,75017 Ashikaga Holdings 4,48218 The Iyo Bank 4,36219 Senshu Ikeda Holdings 4,34920 Nanto Bank 4,11721 ★ The Daishi Bank 3,977


a. Alliance strategy

48

Loyalty Index (NPS)

非常に可能性が高い

非常に可能性が低い

345678 012910 345678 012910

推奨者中立者批判者

The classification of promoters/neutrals/detractors for the scores from 0 to 10 corresponds to actual customer behavior (recommending, repurchasing, etc.).

Likely Unlikely

Detractors Neutrals Promoters

<High-net-worth> Group

Rank Branch Detractors (%) Neutrals (%) Promotors (%) NPS

1 Midland Premier Office 40.4% 29.9% 29.7% -10.7%2 Premier Advisory Dept. 29.9% 58.5% 11.6% -18.4%3 Toyota Premier Dept. 73.5% 22.7% 3.8% -69.7%

There are more than 10 competitors around the branch.Rank Branch Detractors (%) Neutrals (%) Promotors (%) NPS

1 Hamamatsu Branch 52.0% 46.8% 1.3% -50.7%2 Yokohama Branch 63.8% 24.5% 11.7% -52.1%3 Osaka Branch 66.2% 20.9% 12.9% -53.3%4 Nagoya Branch, Sales Division I 61.8% 30.4% 7.8% -54.0%5 Sapporo Branch 73.4% 11.4% 15.2% -58.1%6 Ikebukuro Branch 68.8% 22.9% 8.3% -60.4%7 Kanazawa Branch 71.7% 17.5% 10.8% -60.9%8 Niigata Branch 75.3% 12.0% 12.7% -62.6%9 Okayama Branch 71.6% 20.8% 7.6% -64.0%10 Tokyo Sales Division 75.4% 14.2% 10.4% -65.1%

■ The entire companyDetractors (%) Neutrals (%) Promotors (%) NPS

68.9% 22.7% 8.4% -60.6%

■ By Division

Rank Branch Detractors (%) Neutrals (%) Promotors (%) NPS

1 Main Office Sales Division 36.4% 41.4% 22.2% -14.2%2 Chubu Retail 67.2% 24.2% 8.6% -58.7%3 Nishi-nihon Retail 70.8% 22.0% 7.2% -63.7%4 Higashi-nihon Retail 72.6% 18.6% 8.8% -63.8%5 Toyota Business Unit 73.4% 21.2% 5.5% -67.9%

5. Progress on Each Key Factor(3) Customer loyalty

a. Utilize data from customer loyalty surveys

Utilize the Data on Customer Loyalty Surveys

49

Improve Transparency

Transparency

Morning meetings of the Board of Directors are broadcast within the company on weekly basis

Employees are encouraged to make suggestions through “Waiwai Plaza”

Transparency

Morning meetings of the Board of Directors are broadcast within the company on weekly basis

Employees are encouraged to make suggestions through “Waiwai Plaza”

5. Progress on Each Key Factor(4) Communication

a. Foster corporate culture・ Enhance transparency

50

As of end of: Mar. 2007 Mar. 2008 Mar. 2009 Mar. 2010 Mar. 2011 June 2011 Sep. 2011Inspection Dept. 35 34 37 42 48 47 47Transaction Management Dept. ― 6 7 7 7 8 8Compliance Management Dept. 17 14 14 15Office Management Dept. 9 16 12 24Operation Guidance Dept. 40 50　（313） 48　（311）Compliance Planning Dept. 13 8 8Retail Sales Promotion Dept. 4 4 4Total 61 70 70 88 112 117 115Figures in brackets represent the number of personnel including members of the General Affairs Sections of Sales Branches.

5. Progress on Each Key Factor(4) Communication

a. Foster corporate culture・ Response to corporate misconduct

Number of Personnel Engaged in Compliance-Related Assignment

51

Super Community House

Seminars, events, etc. “Crisis Surrounding Post-quake Japan and Its Countermeasures” (Mr. Yukio

Okamoto & Dr. Wolfowitz)A Round-the-World Trip in 50 Minutes – World Songs Played on the HarmonicaNihonbashi community promotion event

Activities in Nagoya AreaCo-sponsored the “Metropolitan Opera in Nagoya” at the Theater of Aichi

Prefectural Arts TheaterCo-sponsored the “Grand Sumo Tournament in Nagoya” at Aichi Prefectural

Gymnasium “Haochen Zhang Piano Recital” at the Concert Hall of Okazaki City Civic Center “Mitsuko Uchida and the Hagen Quartet” on the Special Stage at the Concert Hall

of Aichi Prefectural Arts Theater

Seminars, events, etc. “Crisis Surrounding Post-quake Japan and Its Countermeasures” (Mr. Yukio

Okamoto & Dr. Wolfowitz)A Round-the-World Trip in 50 Minutes – World Songs Played on the HarmonicaNihonbashi community promotion event

Activities in Nagoya AreaCo-sponsored the “Metropolitan Opera in Nagoya” at the Theater of Aichi

Prefectural Arts TheaterCo-sponsored the “Grand Sumo Tournament in Nagoya” at Aichi Prefectural

Gymnasium “Haochen Zhang Piano Recital” at the Concert Hall of Okazaki City Civic Center “Mitsuko Uchida and the Hagen Quartet” on the Special Stage at the Concert Hall

of Aichi Prefectural Arts Theater

5. Progress on Each Key Factor(5) Super Community House

Stringent Attitude under Unforeseeable Circumstances

53

Value at Risk

Trend of 10-day VaR

(Million yen)

Month 4 5 6 7 8 9 FY20101H

10 11 12 1 2 3 FY20102H

4 5 6 7 8 9 FY20111H

Maximum 415 358 423 519 388 276 519 193 188 187 186 352 209 352 113 118 120 166 260 160 260Average 327 249 278 269 279 186 265 141 131 154 136 189 132 147 74 77 90 101 137 103 97

Maximum 694 541 415 346 435 684 694 557 571 503 602 724 482 724 498 462 670 724 647 580 724Average 347 346 244 240 260 355 299 370 457 336 441 488 319 402 243 305 389 505 487 460 398

Maximum 1,325 1,101 994 1,197 695 790 1,325 742 1,336 971 933 1,076 800 1,336 660 877 899 1,164 815 358 1,164Average 644 572 488 654 407 400 528 389 726 386 533 608 287 488 359 610 363 645 457 204 440

Maximum 0 0 80 57 0 0 80 0 0 0 3 204 65 204 65 78 460 88 68 73 460Average 0 0 8 3 0 0 2 0 0 0 0 57 56 19 58 65 88 71 55 48 64

Maximum 1,197 1,223 1,369 1,323 911 796 1,369 905 1,231 870 1,216 1,451 1,113 1,451 601 676 667 508 497 652 676Average 659 676 625 693 481 413 591 472 715 478 799 796 359 603 350 493 312 335 298 432 370

Total

Dealing

Trading

Selling (Public offering)

Underwriting stocks, etc.

FY2011 1HFY2010 1H FY2010 2H


Risk control

54

Secure Credit Line Availability

Change in the total amount of credit line

<As of March 31, 2010>

(Million yen)

Commitment line Credit facility Total credit line

31,000 93,380 124,380

<As of September 30, 2011>

(Million yen)

Commitment line Credit facility Total credit line

38,000 123,100 161,100



55

Stock Prices of us and peers

40

50

60

70

80

90

100

110

120

11/4

/1

11/4

/15

11/4

/29

11/5

/13

11/5

/27

11/6

/10

11/6

/24

11/7

/8

11/7

/22

11/8

/5

11/8

/19

11/9

/2

11/9

/16

11/9

/30

11/1

0/14

11/1

0/28

11/1

1/11

11/1

1/25

11/1

2/9

11/1

2/23

12/1

/6

Tokai TokyoNomuraDaiwaOkasan

(Indices are calculated based on the closing prices on April 1, 2011 as 100.)



Financial Supplement

57

Total Revenues (Quarterly, Consolidated)

(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Fees and Commissions 7,508 7,843 7,501 6,819 7,240 5,207 6,200 6,814 5,927 5,694 11,621 89 93Trading Profit and Loss 7,084 6,499 6,211 6,462 5,764 5,390 6,361 6,393 6,401 5,440 11,842 93 106Interest and Dividend Income 588 601 713 667 839 747 780 664 812 850 1,662 115 105Total Operating Revenues 15,180 14,944 14,426 13,948 13,843 11,344 13,342 13,871 13,140 11,985 25,125 92 100

FY2011FY2009 FY2010

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

Interest and Dividend IncomeTrading Profit and LossFees and Commissions

Breakdown

49 52 52 49 52 46 46 49 45 48

47 43 43 46 4248 48 46 49 45

4 4 7 6 5 6 7655

0%

20%

40%

60%

80%

100%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Interest and Dividend IncomeTrading Profit and LossFees and Commissions

58

Commissions (Quarterly, Consolidated)

(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Brokerage Commissions 3,579 2,626 1,846 2,110 2,092 1,313 1,805 2,586 1,480 1,443 2,924 67 86Underwriting and Sales 43 28 111 132 74 49 61 23 83 65 149 176 121Subscription and Distribution 2,563 3,671 4,094 3,254 3,621 2,397 2,890 2,571 2,833 2,626 5,460 100 91Other Commissions 1,320 1,517 1,448 1,321 1,451 1,447 1,442 1,633 1,529 1,558 3,087 100 107Fees and Commissions 7,508 7,843 7,501 6,819 7,240 5,207 6,200 6,814 5,927 5,694 11,621 89 93

FY2011FY2009 FY2010

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

Other CommissionsSubscription and DistributionUnderwriting and SalesBrokerage Commissions

Breakdown

25 2938

25 25

1

34

4755

48 5046

4738

48 46

18 19 19 19 2028 23 24 26 27

4833

25 31 2912

10

1

1

0

11

0%

20%

40%

60%

80%

100%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q

FY2009 FY2010 FY2011

Other CommissionsSubscription and DistributionUnderwriting and SalesBrokerage Commissions

59

Income by Product (Quarterly, Consolidated)

(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Stocks (commissions) 3,598 2,725 1,936 2,228 2,128 1,307 1,796 2,583 1,531 1,448 2,980 68 87Bonds (commissions) 34 23 29 48 67 68 82 36 47 68 115 97 85Beneficiary Certificates (commissions) 3,378 4,554 5,044 4,336 4,731 3,501 4,031 3,737 4,057 3,802 7,860 101 95Others (commissions/insurance,etc.) 496 540 491 206 312 330 288 457 290 374 664 89 103

Commissions 7,508 7,843 7,501 6,819 7,240 5,207 6,200 6,814 5,927 5,694 11,621 89 93

FY2009 FY2011FY2010

Revenue components

0

2,000

4,000

6,000

8,000

10,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

Others (commissions/insurance,etc.)Beneficiary Certificates (commissions)Bonds (commissions)Stocks (commissions)

Breakdown

4835

2633 29 25 29

3826 25

0

0

01 1

11

1

1 1

4558

6764 65 67 65 55

68 67

7 7 7 3 4 6 5 7 5 7

0%

20%

40%

60%

80%

100%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

60

Trading Profit and Loss (Quarterly, Consolidated)

(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Stocks 2,666 1,795 2,486 2,184 1,230 1,819 2,950 2,856 2,354 1,710 4,064 70 133(Stock Proprietary trading) 1,230 280 713 700 15 -3 154 137 119 -23 95 33 792Bonds & Currencies 4,417 4,703 3,725 4,277 4,533 3,570 3,411 3,536 4,047 3,729 7,777 112 96(Bond Proprietary Trading) 10 25 29 -14 30 50 18 22 25 19 44 109 55Trading Profit and Loss 7,084 6,499 6,211 6,462 5,764 5,390 6,361 6,393 6,401 5,440 11,842 93 106

FY2011FY2010FY2009

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)Stocks Bonds & Currencies Trading Profit and Loss

61

Selling, General and Administrative Expenses (Quarterly, Consolidated Basis)

(Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Trading-related expenses 1,670 1,644 1,734 2,704 2,385 1,981 2,364 2,490 2,163 2,065 4,228 87 97Personnel expenses 6,220 6,057 5,802 6,001 5,685 5,607 5,651 6,026 5,718 5,609 11,327 97 100Occupancy and rental 1,457 1,432 1,379 1,616 1,515 1,553 1,509 1,472 1,525 1,433 2,959 99 96Operational expenses 1,332 1,345 1,324 305 1,214 1,233 1,218 1,344 1,275 1,357 2,632 103 108Depreciation expenses 651 666 671 748 636 653 688 745 684 733 1,417 99 110Others 466 415 501 470 571 395 438 373 445 479 923 119 98Total SG&A expenses 11,799 11,562 11,413 11,848 12,008 11,423 11,870 12,453 11,812 11,679 23,490 97 100

FY2011FY2010FY2009

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

OthersDepreciation expensesOperational expensesOccupancy and rentalPersonnel expensesTrading-related expenses

62

Indicators (Consolidated)

FY20111Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H

EPS (yen) 7.53 6.66 6.17 5.97 9.23 -0.85 3.18 3.94 2.06 -0.76 1.30BPS (yen) 398.98 404.39 399.83 406.92 405.59 403.45 403.44 407.26 406.59 412.50 412.50ROE (%) 7.5 6.6 6.2 5.9 9.1 - 3.2 3.9 2.0 - 0.6Dividend per share (yen) - 6.00 - 9.00 - 4.00 - 4.00 - 4.00 4.00*ROE is annualized

FY2011FY2009 FY2010

-5.00

0.00

5.00

10.00

15.00

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

-5.0

0.0

5.0

10.0

15.0EPS (yen)ROE（％）

(yen) (%)

Overview of Tokai Tokyo Securities

64

Assets under Custody

(Billion yen)Comparison w ith


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY20102H = 100

FY20101H = 100

Stocks 1,689 1,644 1,617 1,738 1,534 1,503 1,581 1,545 1,487 1,374 89 91Bonds 963 912 904 893 1,010 1,042 1,060 1,072 1,025 976 91 94Investment Trusts 685 750 823 847 1,158 1,202 1,231 1,228 1,239 1,132 92 94Others 14 14 13 16 13 13 13 14 12 12 86 86Total 3,351 3,320 3,356 3,494 3,715 3,760 3,885 3,858 3,763 3,494 91 93

FY2009 FY2010 FY2011

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Billion yen)

OthersInvestment TrustsBondsStocks

Breakdown of Assets under Custody

50 50 48 5041 40 41 40 40 39

29 27 27 2627 28 27 28 27 28

20 23 25 2431 32 32 32 33 32

0 0 0 0 0 0 0 0 0 0

0%

20%

40%

60%

80%

100%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Stocks Bonds Investment Trusts Others

65

Capital Adequacy Ratio

(Million yen)Comparison w ith


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY20102H = 100

FY20101H = 100

415.0 429.7 443.8 388.2 392.3 389.3 387.7 396.6 370.4 343.7 87 88

66,336 69,446 71,365 67,881 69,603 70,300 70,969 69,867 70,664 71,150 102 10115,981 16,159 16,080 17,481 17,738 18,056 18,303 17,612 19,077 20,698 118 115

Market Risk Amount 4,352 3,799 4,111 5,285 4,194 4,733 4,917 4,161 5,465 6,890 166 146Customer Risk Amount 1,595 2,061 1,844 1,679 1,980 1,803 1,918 1,976 2,085 2,314 117 128Basic Risk Amount 10,034 10,298 10,124 10,516 11,563 11,518 11,467 11,474 11,526 11,494 100 100

Risk amount

Capital Adequacy Ratio (%)

Net Capital

FY2011FY2010FY2009

(Million yen)

0

15,000

30,000

45,000

60,000

75,000

90,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

200.0

250.0

300.0

350.0

400.0

450.0

500.0（％）

Net CapitalRisk amountCapital Adequacy Ratio (%)


(Million yen)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Inflow of Cash 50,543 50,836 54,503 50,612 66,768 56,019 56,500 63,170 57,499 56,759Outflow of Cash -38,351 -41,296 -43,868 -38,323 -48,003 -39,989 -47,583 -46,033 -46,064 -41,160Net Inflow of Cash 12,192 9,539 10,634 12,289 18,765 16,029 8,918 17,137 11,436 15,600Inflow of Securities 6,355 5,091 3,003 4,815 7,134 3,180 6,100 2,421 3,770 1,553Outflow of Securities -3,419 -1,862 -3,840 -3,060 -3,523 -2,583 -1,751 -1,891 -3,693 -1,946Net Inflow of Securities 2,936 3,229 -837 1,755 3,611 597 4,349 530 77 -394Net Inflow of Cash and Securities 15,128 12,768 9,797 14,043 22,376 16,627 13,267 17,667 11,513 15,206

FY2009 FY2010 FY2011

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000 Inflow of CashOutflow of CashInflow of SecuritiesOutflow of SecuritiesNet Inflow of CashNet Inflow of SecuritiesNet Inflow of Cash and Securities

(Million yen) (Million yen)

Net Inflow of Cash and Securities (Personal Customers)

67

Investment Trusts

Sales and Assets under Custody


0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000(Million yen)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000(Million yen)

SalesAssets under Custody

Sales 89,458 129,671 177,224 120,622 132,302 90,244 104,532 95,004 111,457 117,115

Assets under Custody 685,209 750,211 822,808 847,051 1,158,489 1,202,023 1,231,361 1,227,718 1,238,609 1,132,070

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Sales Assets under Custody

(Million yen)


Previous 2HYear on

Year

1H FY20102H = 100

FY20101H = 100

Sales 228,571 115 103

68

Investment Trusts

Agency Commissions　Sales Commissions


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500(Million yen)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Sales CommissionsSales Commission Rate

Sales Commissions 2,526 3,603 4,003 3,115 3,532 2,295 2,782 2,492 2,730 2,545

Sales Commission Rate 2.8% 2.8% 2.3% 2.6% 2.7% 2.5% 2.7% 2.6% 2.4% 2.2%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

0

300

600

900

1,200

1,500(Million yen)

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

Agency CommissionsAgency Commission Rate

Agency Commissions 776 850 907 915 1,067 1,057 1,103 1,116 1,183 1,126

Agency Commission Rate 0.47% 0.46% 0.46% 0.45% 0.42% 0.36% 0.36% 0.36% 0.38% 0.39%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)


Previous 2HYear on

Year

1H FY20102H = 100

FY20101H = 100

Sales Commissions 5,274 100 91

(Million yen)


Previous 2HYear on

Year

1H FY20102H = 100

FY20101H = 100

Agency Commissions 2,309 104 109

69

Investment Trusts

Sales by Product Type (Retail Business Unit)


(Million yen)

FY2011 Comparison w ithPrevious 2H Year on Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

39,701 73,599 60,993 52,945 67,568 65,657 74,059 53,805 70,163 59,139 129,303 101 9738,791 43,139 68,195 46,753 45,071 7,828 16,966 28,027 24,746 27,793 52,539 117 9978,493 116,739 129,188 99,699 112,639 73,486 91,024 81,831 94,909 86,933 181,842 105 98

OthersTotal

Monthly dividend type

FY2009 FY2011FY2010

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

OthersMonthly dividend type

(Million yen)

70

Structured bonds

Insurance

Other Products


Insurance commissions

83106 92

118 107 11999

134 119 140

15159 68

45

71

72

1

11 2

1216

121917

31

2032

9

2

251

206

157

220

131 140

112

161 157133

0

50

100

150

200

250

300

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Variable insuranceCasualty insuranceLife insuranceInsurance total

(Million yen)

(Million yen)


Previous 2HYear on

Year

1H FY20102H = 100

FY20101H = 100

Life insurance 259 111 115Casualty insurance 27 98 76Variable insurance 4 31 41Insurance total 290 106 107

Revenues related structured bonds

1,2681,168

1,409

1,568

924

509 560

387

546

1,356

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

(Million yen)


Previous 2HYear on

Year

1H FY20102H = 100

FY20101H = 100

Revenues related tostructured bonds 933 87 37

71

Business Overview by Customer Segment

* Numeric data on this slide was extracted from the internal managerial 　records of Tokai Tokyo Securities Co., Ltd.Retail includes the Retail Business Unit, Main Office Sales Unit, and Toyota Business Unit (excl. corporate customer segment)Investment Banking includes Investment Banking Business Unit, Main Office Corporate Sales Dept., and Toyota Corporate Client Dept.

Total Revenue (Million yen)


Previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1HFY2010

2H = 100FY2010

1H = 10010,021 10,349 9,939 9,155 9,601 7,547 9,201 9,184 8,885 8,331 17,216 94 100

% 69 72 70 67 72 69 71 69 70 70 70

4,566 4,083 4,161 4,501 3,975 3,460 3,833 4,074 3,874 3,575 7,449 94 100

% 31 28 30 33 28 31 29 31 30 30 30

FY2009

Retail

Investment Banking

FY2010 FY2011

Revenues by Customer Segment (FY2011 1H)

Retail70%

Dealing1%

InvestmentBanking

30%

Others30%

Number of Employeesby Business Unit

Retail81%

280

1,223

InvestmentBanking19%

Assets under Custodyby Business Unit (100 million yen)

Retail57%14,966

19,973

InvestmentBanking43%

72

Revenue by Product (Retail)

Revenue by Product


(Million yen)



Total Revenue 10,021 10,349 10,198 9,592 9,916 7,552 9,019 8,936 8,746 8,198 16,944 94 97Domestic Stocks 3,194 2,234 1,554 1,754 1,651 935 1,297 1,861 1,078 1,026 2,104

% 31.9% 21.6% 15.2% 18.3% 16.7% 12.4% 14.4% 20.8% 12.3% 12.5% 12.4%6,827 8,114 8,643 7,838 8,265 6,617 7,722 7,075 7,668 7,172 14,840

% 68.1% 78.4% 84.8% 81.7% 83.4% 87.6% 85.6% 79.2% 87.7% 87.5% 87.6%Foreign Stocks 702 744 999 780 891 1,349 2,208 1,510 1,621 1,622 3,243 87 145

Bonds 5 6 13 13 17 25 26 17 29 27 57 131 135

Foreign Bonds 1,434 1,381 1,392 1,718 1,755 1,037 808 919 891 731 1,623 94 58

Investment Trusts 2,502 3,605 3,983 3,100 3,493 2,253 2,738 2,434 2,700 2,506 5,206 101 91Investment TrustsAgency 745 824 850 879 984 973 998 1,039 1,088 1,000 2,088 102 107

Foreign Exchange 1,042 1,150 1,115 967 886 684 729 861 1,102 1,000 2,102 132 134

Insurance 252 241 124 194 66 136 107 182 122 174 296 102 147

Others 141 159 167 188 171 161 107 112 113 112 225 102 68

FY20101H = 100

67

FY2009

81

100100

FY20102H = 100

1Q 3Q 4Q 1H1Q

FY2011

4Q 2Q

FY2010

1Q3Q 2Q2Q

Other Instruments

Revenue by Product

0

2,000

4,000

6,000

8,000

10,000

12,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

Other InstrumentsDomestic Stocks

The relative weight of stocksand other instruments

31.9%

21.6%

15.2%

18.3%

16.7%

12.4%

14.4%

20.8%

12.3%

12.5%

68.1%

78.4%

84.8%

81.7%

83.4%

87.6%

85.6%

87.7%

79.2%

87.5%

0% 20% 40% 60% 80% 100%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY20

09FY

2010

FY20

11

Domestic StocksOther Instruments

73

Revenue Trends in Investment Banking Business Unit

Revenues

* Dealing Division was integrated into the Corporate Products Division in the 1st Quarter of FY ending March 2012.


(Million yen)


Previous 2H Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Investment Banking B.U. 4,566 4,083 4,161 4,501 3,838 3,222 3,655 3,940 3,729 3,370 7,099 93 101Corporate Assets Division 697 693 671 772 523 512 540 575 552 643 1,195 107 115Corporate Products Division 3,136 2,624 2,651 2,625 1,852 1,731 1,940 1,961 2,114 1,777 3,891 100 109

Dealing Division 1,242 306 744 685 46 46 173 159 143 -5 139 42 151Stock Proprietary Trading 1,230 280 713 700 15 -3 154 137 119 -23 95 33 792Bond Proprietary Trading 10 25 29 -14 30 50 18 22 25 19 44 109 55

Corporate Solutions Division 51 141 65 81 130 66 121 111 99 152 251 108 128Others 680 622 773 1,021 1,331 911 1,052 1,293 963 799 1,762 75 79

FY2011FY2010FY2009

(Million yen)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

Corporate Assets DivisionCorporate Products DivisionCorporate Solutions DivisionOthers

74

Corporate Solutions Division


(Million yen)


Previous 2H Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Underwriting 16 8 12 14 73 37 79 38 76 71 147 125 134Stocks 13 6 11 4 14 0 0 1 21 5 26 2,151 183Bonds 2 2 1 9 58 36 79 37 55 66 121 105 129

Other fees and commissions 35 133 52 67 57 29 41 73 23 81 104 92 121IPO consulting 11 15 13 14 13 11 9 6 5 5 10 69 43IR supporting 6 12 9 4 8 6 7 4 5 3 9 81 62M&A, other consulting 10 97 25 42 31 8 20 59 7 61 69 87 176Others 7 7 4 5 4 3 4 4 5 12 17 199 241

Division total 51 141 65 81 130 66 121 111 99 152 251 108 128

FY2011FY2010FY2009

Revenues by Category

0

20

40

60

80

100

120

140

160

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

(Million yen)

Other fees and commissionsUnderwriting

Revenue Trends in Corporate Solutions Division (Investment Banking)

75

Stock Trading Volume and Value(Million shares, Million yen)


Previous 2H Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

2,728 2,213 1,919 1,753 1,622 1,682 1,620 1,736 1,224 1,153 2,376 71 72Dealing 1,595 1,466 1,331 1,145 1,066 1,249 1,024 854 693 632 1,325 71 57Brokerage 1,133 746 589 609 556 433 595 882 531 521 1,052 71 106

42% 34% 31% 35% 34% 26% 37% 51% 43% 45% 44% - -

1,319,848 1,107,534 1,103,037 1,108,346 1,188,916 1,003,120 942,676 1,120,742 750,244 809,606 1,559,849 76 71Dealing 750,822 687,144 787,325 765,002 845,799 773,137 627,725 639,448 480,887 521,577 1,002,463 79 62Brokerage 569,026 420,390 315,712 343,344 343,117 229,983 314,951 481,294 269,357 288,029 557,386 70 97

43% 38% 29% 31% 29% 23% 33% 43% 36% 36% 36% - -

2.98 3.23 2.88 3.14 3.42 2.77 2.83 2.65 2.51 2.48 2.50 46 40

Brokerage %

BrokerageCommission

Amount

Brokerage %

Number of Shares

FY2011FY2009 FY2010

Number of Shares

0500

1,0001,5002,0002,5003,0003,500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

0%10%20%30%40%50%60%70%

BrokerageDealingBrokerage %

(Million shares) Amount

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2009 FY2010 FY2011

0%10%20%30%40%50%60%70%

BrokerageDealingBrokerage %

(Million yen)

76

Underwriting, Subscription, and Distribution Volume & Value

(Million shares, Million yen)


Previous 2H Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20102H = 100

FY20101H = 100

Stocks (Number of shares) 0 0 7 1 0 0 0 0 0 0 0 115 951Stocks (Amount) 1,004 436 3,258 2,978 576 379 0 47 2,268 223 2,491 5,270 261Bonds (Face value) 153,442 134,806 132,122 135,873 160,650 126,659 178,113 129,215 145,225 168,005 313,230 102 109

Commercial Paper and ForeignSecurities (Face value) －－－－－－ - - －－－ - -

Stocks (Number of shares) 0 1 7 1 0 1 0 0 0 0 0 37 10Stocks (Amount) 1,038 685 3,204 2,983 462 451 1 131 1,892 198 2,089 1,585 229Bonds (Face value) 154,516 137,969 136,410 141,454 163,564 112,985 168,723 129,515 145,614 167,714 313,328 105 113Investment Trusts(Face value)

323,002 411,818 430,032 362,331 451,346 409,955 420,671 404,919 410,230 437,313 847,543 103 98

Commercial Paper and ForeignSecurities (Face value) －－－－－－－－－－－ - -

Subscription andD

istributionU

nderwriting

FY2011FY2009 FY2010

77

Blue Ocean Strategy

Alliance with Regional Banks

M&A Strategy

Alliance with Toyota Group(Integration and Collaboration Strategy with

Toyota Financial Services Securities)

Growth Strategy

78

Inquiries to be Directed to:

This material is intended to provide information regarding the Company’s most recent operational results and NOT to solicit investment in securities issued by the Company.

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.

General Planning Department, Tokai Tokyo Financial Holdings, Inc.TEL: 03-3517-8618　FAX: 03-3517-8314E-mail: [email protected]

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Result Review on the 2nd Qtr of Fiscal 2011 that ends in ... · Tokai Tokyo Financial Holdings, Inc. Result Review on the 2nd Qtr of Fiscal 2011 ... Analysis of Financial Results