CEO Presentation November 2017 FINANCIAL RESULTS (CONSOLIDATED) - PDF document

CEO Presentation November 2017

FINANCIAL RESULTS (CONSOLIDATED) Nikkei 225 (Yen) ■ Trend of Financial Results (Semi-Annual) 24,000 20,000 16,000 12,000 ¥11.16 billion gain of negative goodwill by 8,000 Operating revenue, acquiring Takagi Securities Net Income Ordinary income （ Million Yen ） (Million Yen) 90,000 18,000 Operating Revenue 80,000 16,000 Ordinary Income 70,000 14,000 60,000 12,000 Net Income 50,000 10,000 40,000 8,000 ● 30,000 6,000 20,000 4,000 10,000 2,000 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 1H calculated excluding 2017 Takagi Sec. and ETERNAL Recorded positive ordinary income non stop for 28 consecutive quarters 1

CONTRIBUTING FACTORS Product Foreign Stocks Structured Bonds Income Growth JV Market Affiliates Division 2

FOCUS AREAS HIGH WEALTH BUSINESS JOINT VENTURE NEW PROJECTS 3

CAPITAL POLICY Shareholder Return - Dividend - Share Buyback - Benefit Program Reserved Capital Enhancement of Market Division Investment in Future Growth M&A / Alliance Expansion in Tokyo IT Enhancement Restructuring Takagi Sec. Development of “MONEQUE” 4

NEW MANAGEMENT PLAN “New Age’s Flag Bearer 5” Management and Business Base built through “Ambitious 5” Environmental Change “New Age’s Flag Bearer 5” Develop new sector in the industry Great Market Retail Productivity Tokyo M&A Revolution Segmentation Platform Expansion 5

Inquiries to be directed to: Corporate Communications Department TEL: +81-3-3517-8618 FAX: +81-3-3517-8314 E-mail: fh_ir@tokaitokyo-fh.jp 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.  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. 6

IR Presentation Financial Summary & Business Strategy November 2017

Contents Overview of Tokai Tokyo Financial Holdings Financial Summary and Characteristics of Business and Performance Progress of New Project Capital Policy New Management Plan “New Age’s Flag Bearer 5” * Unless otherwise specified, the numerical data we quote here were all compiled as consolidated figures of the Tokai Tokyo Financial Holdings, Inc. 1

Overview of Tokai Tokyo Financial Holdings

Overview of Tokai Tokyo Financial Holdings  Corporate Profile Company Name: Tokai Tokyo Financial Holdings, Inc. Consolidated Net Assets: 171.5 billion yen Client Assets under Custody: 4,646.0 billion yen (Retail Client Assets: 2,678.4 billion yen Market Capitalization: 187.1 billion yen Number of Employees: Holding Company 182 Consolidated Basis: 3,424 （ As of September 30, 2017 ）  Group History Current group configuration was formed in Apr. ‘17 Apr. ‘10 October 2000 through merger between Tokyo Securities and Tokai Maruman Securities Relocated HQ of TTSC Acquired to Nagoya City Apr. ‘09 Takagi Sec. Group company of the Apr. ‘10 Nikko Securities (a) Tokai Tokyo March. ‘17 Sep. ‘17 TTSC merged with Financial Holdings Toyota Financial Acquired Tokyo was established Acquired Services Sec. ETERNAL Securities Pinnacle Tokai Tokyo Securities Tokai May ‘10 Jan. ‘17 Apr. ‘17 Maruman Nov. ‘08 Oct. ‘12 Nishi- Hokuhoku Tochigi Bank Hamagin Senshu Securities Oct. ‘07 Nippon invested in TT TT Ikeda TT YM City TT Utsunomiya Group company of the Tokai Bank(b) Securities * Currently, (a) SMBC Nikko Securities, (b) Bank of Tokyo-Mitsubishi UFJ 3

Financial Summary and Characteristics of Business and Performance

Financial Summary Trend Analysis (Consolidated) Nikkei 225 (Yen) ■ Financial Results (Semi-Annual) 24,000 20,000 16,000 12,000 ¥11.16 billion gain of negative goodwill by 8,000 Operating revenue, acquiring Takagi Securities Net Income Ordinary income （ Million Yen ） (Million Yen) 90,000 18,000 Operating Revenue 80,000 16,000 Ordinary Income 70,000 14,000 60,000 12,000 Net Income 50,000 10,000 40,000 8,000 ● 30,000 6,000 20,000 4,000 10,000 2,000 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 1H calculated excluding 2017 Takagi Sec. and ETERNAL Recorded positive ordinary income non stop for 28 consecutive quarters 5

Characteristics of Business and Performance Revenue Source ■ Group operating revenue image including the affiliates’ figures on Pro-Rata Basis* * The charts present an image of the source of Group revenue, in FY2017 1H, which, being different from our consolidated PL, include affiliates’ figures on pro-rata basis. 6

Characteristics of Business and Performance Breakdown by Business Segment ■ Revenue Breakdown by Business Segment Non-Retail Retail 100% FY2017 1H FY2012 90% 30 23 27 26 24 25 26 27 30 30 34 31 34 39 37 41 40 42 42 43 40 45 80% 70% 60% 50% 40% 70 77 73 74 76 75 74 73 70 70 66 69 66 61 63 59 60 58 58 57 60 55 30% 20% 10% 0% 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 * Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd. 7

Characteristics of Business and Performance Retail Segment Revenue Breakdown by Region Revenue Breakdown by Product (Million Yen) (Million Yen) 40,000 Western Japan Others 40,000 Investment Trusts 35,000 Eastern Japan 35,000 Bonds Central Japan (Mostly foreign/structured bonds) 30,000 Foreign Stocks 30,000 Domestic Stocks 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 2017 * Excluding income not accompanying customers 8

Characteristics of Business and Performance Wealth Management Unit Assets under Custody Number of Membership & Assets under Custody (Wealth Management Unit & Premier Executive Advisors) (Orque d’or) （ Billion Yen ） (Billion Yen) 600 300 1,400 Premier Executive Advisors Assets under Custory Overlap 479 500 1,200 250 Number of Membership Wealth Management 425 1,000 400 367 200 365 354 800 314 300 150 240 600 223 184 200 100 400 50 100 200 0 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2013 FY2014 FY2015 FY2016 FY FY2015 FY2016 FY2017 2017 9

Characteristics of Business and Performance Wealth Management Unit Share of High Wealth AUC in Retail Segment General High High 10.9% Wealth General Wealth 27.5% 14.8% 14.4% Middle Wealth 24.3% 36.7% Middle Wealth 46.5% 25.0% End of March 2013 End of Sep. 2017 Share of High Wealth Revenue in Retail Segment High Wealth General 6.5% High Wealth 8.0% General 16.6% 11.4% Wealth 25.9% Middle Wealth Middle 44.9% 30.6% 56.1% FYE March 2013 1H of FYE Mar. 2018 High Wealth :Holding over 100 million yen in assets under custody (6 months from Apr.- Sep. 2017) Wealth :30 million to 100 million yen Middle :5 million to 30 million yen General :less than 5 million yen 10

Characteristics of Business and Performance Trend of Revenue and its Composition at Market Segment Increase in Foreign bonds & derivatives, and Foreign stocks (Million Yen) 14,000 others 12,000 (Mostly origination fee) Foreign Bonds and Derivatives Foreign Stocks 10,000 Bond Trading (Domestic/structured bonds, etc.) Equity Trading (Japanese equity) 8,000 6,000 4,000 2,000 0 -2,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 * Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd. * “Others” comprises trading which cannot be classified into products according to management accounting rule. 11