Current Management Information Briefing June 29, 2011 1 June 29, - - PowerPoint PPT Presentation
Strategic Business Innovator Current Management Information Briefing June 29, 2011 1 June 29, 201 Yoshitaka Kitao Yoshitaka Kitao Representative Director & CEO Representative Director & CEO SBI Holdings, Inc. SBI Holdings, Inc.
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Note: Fiscal Year (“FY”) ends March 31 of the following year
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I. Boosting Earnings Capacity by Promoting Pentagon Management and Making Progress with the “Brilliant Cut” Initiative of the SBI Group II. Capturing the Growth Potential of the Asian Market with the Aim of Transforming SBI into a Global-scale Enterprise Group III. Expanding the Business Foundations to be Prepared for a Future Recovery in the Business Environment and Fostering a New Revenue Source
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Japan China Vietnam India Turkey Russia Brazil U.S. 0% 2% 4% 6% 8% 10% 2011 2012 2013
In contrast to Japan’s slow growth, emerging countries are expected to sustain high growth rates
June 8th, 2011 “The Nikkei” newspaper evening edition The World Bank “Global Economic Prospects” (On calendar year basis)
The World Bank’s forecast of GDP growth rates
Newspaper article
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June 1st, 2011 “The Nikkei” newspaper morning edition June 12th, 2011 “The Nikkei Veritas” May 24th , 2011 “The Nikkei” newspaper morning edition
“Concern about double dip in U.S. housing market” “Sharp depreciation of euro against U.S. dollar” “Focus is on hammering out measures to prevent repercussions for Spain” Financial reconstruction efforts in Greece facing difficulties
April 8th. 2011 The Shizuoka Shimbun” newspaper
Newspaper article Newspaper article Newspaper article Newspaper article
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*Source: Stock exchanges, E&Y “Global IPO Update”
(Unit: companies)
20 40 60 80 100 120 140 160 180 200 FY2006 FY2007 FY2008 FY2009 FY2010 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
(Domestic) (Overseas)
Change in the number of domestic and overseas IPOs
Amid the Global IPO Market Recovery Centered on Asia, Japan's IPO Market Continues to Flounder
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50 100 150 200 250 300 350 400 450 500
China US India Japan 2004 2010
China (incl. Hong Kong) US India Japan 2004 146 (68) 227 20 177 2010
440 (101) 163 63 22
* On calendar year basis
Source: ERNST &YOUNG “Global IPO trends 2011” , and HKEx
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6,441 4,890 5,906 4,812 6,917 4,836 4,569 4,661 5,262 5,643 6,905 6,532 8,387 7,209 7,097 5,416 4,083 4,256 3,991 3,980 6,969 3,713 6,164 7,420 5,215 5,764 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
A p r . M a y . J u n . J u l . A u g . S e p . O c t . N
. D e c . J a n . F e b . M a r . A p r . M a y . J u n . J u l . A u g . S e p . O c t . N
. D e c . J a n . F e b . M a r . A p r . M a y .
8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000
End-of-quarter Nikkei Average (right-side scale)
FY2009
(yen)
FY2010
It had recovered since last August, but fell into stagnation again in April
*Source: Complied by SBIH from disclosed data from TSE and OSE *Japanese Stocks listed on Tokyo Stock Exchange, Osaka Stock Exchange and Nagoya Stock Exchange (Including TSE Mothers, OSE JASDAQ and NSE Centrex )
(bil. yen)
Individual brokerage trading value resulted 16.3% downturn YoY in FY2010. Though it was heading for recover before the earthquake, it started to decline again.
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253.1 218.4 166.9 146.0 132.1 137.4 137.9 153.3 156.5 192.8 210.8 232.7 163.7 148.4 151.7
50 100 150 200 250
Change in average daily stock trading value
2010 2011
(bil. yen)
As of Jun. 27 latest number
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Slowdown of Japanese Economy
Growth
Breakthrough of the Emerging Nations
Other EU Countries
Unpredictable Economic Situation in EU and the U.S.
I. Boosting earnings capacity by promoting pentagon management and making progress with the “brilliant cut” initiative of the SBI Group II. Capturing the growth potential of the Asian market with the aim
III. Expanding the business foundations to be prepared for a future recovery in the business environment and fostering a new revenue source
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Source: Richard Rumelt, “Strategy, Structure and Economic Performance”
Diversification led Diversification led by the primary business by the primary business Diversification linked Diversification linked with related businesses with related businesses Diversification linked Diversification linked with unrelated businesses with unrelated businesses
Diversification pattern in Diversification pattern in which constituents of the which constituents of the business portfolio are business portfolio are interrelated interrelated
Diversification pattern Diversification pattern in which groups of in which groups of unrelated businesses unrelated businesses form diversified form diversified conglomerate conglomerate
In diversified enterprises, the more closely interrelated the individual businesses in the portfolio are, the higher their profitability is.
Diversification pattern in Diversification pattern in which the primary which the primary business carries business carries
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Overseas Overseas Overseas Overseas Overseas
System Know-how Expertise Supporting businesses Supporting businesses
Securities Banking
Non-life Insurance
Supporting businesses
capital System solution Business Common Infrastructure
Life Insurance
Supporting businesses Supporting businesses
Settlement Services
System Know-how Expertise System Know-how Expertise System Know-how Expertise System Know-how Expertise
SBI Money Plaza
five core businesses among our financial services financial services: Securities, Banking, Non-life Insurance, Life Insurance and Settlement Services.
To launch the life insurance business, the Group established the Life Insurance Planning Office and is making preparations to apply for the approval of the Financial Services Agency.
SBI SECURITIES
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Pentagon Management of the Financial Services Business (2)：
(Example1) Securities Banking (Example 2) Non-life Insurance Securities / Banking
Synergy Synergy Synergy Synergy Synergy
Securities Banking
Non-life Insurance
Life Insurance Settlement Services
SBI SECURITIES
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Synergies between Core Businesses ： (Example 1) Securities Banking
1,146,325
(as of Jun.27)
1,114,339 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Sept. Mar. Sept. Mar. Sept. Mar. May
2008 2009 2010 2011
Accounts Initial target Achievement 400,000 600,000
Exceeded 1 million accounts on Feb.10, 2011
Change in numbers of accounts
(accounts)
[SBI SECURITIES] About 40% of SBI SECURITIES depositors are via SBI Sumishin Net Bank About 40% of SBI Sumishin Net Bank depositors are via SBI SECURITIES
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200 400 600 800 1,000 1,200 1,400 1,600 1,800
Sept. Mar. Sept. Mar. Sept. Mar. May
1,624.3
Synergies between Core Businesses： (Example 1) Securities Banking
MRF balance
(Apr. 2011)
379.1 bil. yen
(within Jun. 2011)
2008 2009 2010 2011
Deposit Initial target Achievement 700 bil. yen 1 tril. yen
Exceeded 1.6 trillion yen on
Change in deposits
(bil. yen) Midsize local bank level
(as of Jun. 27)
(*1) FY2010 (*2) as of June 27, 2011
SBI SECURITIES will finalize new MRF purchases
Allocated as purchasing funds for spot trading or such like at SBI SECURITIES
SBI Hybrid Deposits
Funding cost: 0.53% Hybrid Deposit interest rate: 0.12% Funding cost will decrease, even after taking into account deposit insurance rate
(*1) (*2) 1,593.2
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1,624.3 1,647.7
400 800 1,200 1,600
Sep. Mar. Sep. Mar. Sep. Mar. Dec.
1,146,325
859,000
200,000 400,000 600,000 800,000 1,000,000 1,200,000
Sep. Mar. Sep. Mar. Sep. Mar. Dec.
SBI Sumishin
2007 2010
Sony
2008 2009
SBI Sumishin Sony (From the end of Sept. 2007 to May. 27, 2011)
Change in deposit amount Change in number of customer accounts
*Sony Bank refrained from monthly disclosures after Aug. 2010
(From the end of Sept. 2007 to May. 27, 2011)
SBI Sumishin Net Bank:
(bil. yen) (accounts)
SBI Sumishin Net Bank SBI Sumishin Net Bank recorded recorded solid growth solid growth in both n in both number of customer accounts and deposit amount umber of customer accounts and deposit amount
SBI Sumishin
Sony
Exceeded Sony Bank in Jun. 2010!
(Launched in Jun. 2001) (Launched in Sept. 2007)
2011
(Mar. 2011) (Mar. 2011)
2007 2010 2009 2011 2008
(Jun. 27) (Jun. 27)
SBI Sumishin topped 1,600 bil. yen on May 10, 2011
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726.9 656.0
150 300 450 600 750
SBI Sumishin Net Bank Sony Bank
2002 2006 2003 2005 2004 2007 2008 2009 2010
(Launched in Jun. 2001) (Launched in Sept. 2007)
Change in balance of housing loans *1
(from Jun. 2002 to May 2011)
*1 Cumulative new housing loans minus amount of repayment
(bil. yen) Cumulative total of housing loans exceeded 800 bil. yen *2 (Jun. 24, 2011)
Fastest among Internet banks
*2 Cumulative total of new loans
The housing loans outstanding has almost doubled in a year
The proportion of fixed-
rate loans in the housing loan balance has decreased due to increased sales of eased sales of variable variable-
rate housing loans.
(Mar. 2011) (May 2011)
SBI Sumishin Net Bank:
Exceeded Sony Bank on Mar. 2011
2011
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33 68 91 54 87 94 102 219 338 18 42 30 18 14 5 35 200 400 600 800 1H 2H 1H 2H Number of contracts at Number of contracts at each agency channel (index) each agency channel (index)
(Calculated as the total number of 1H FY2009 equals 100) (Calculated as the total number of 1H FY2009 equals 100)
FY2009 FY2010
Others (outside the Group) SBI Sumishin Net bank Others (inside the SBI Group: Autoc
financial agency included) SBI SECURITIES
The SBI Group's share of new contracts through agencies sites:
39%
(Oct. 2010 - Mar. 2011)
Contracts via SBI SECURITIES and SBI Sumishin Net Bank have considerably contributed to an increase in “contracts through agency”
SBI SECURITIES 17% SBI Sumishin Net Bank 17%
The SBI Group's share of new contracts through agencies sites 39% 44% 50% 65%
Comparison of number of contracts at SBI Insurance by channel
Synergies between Core Businesses:
(Example 2) Insurance Securities, Banking
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50 100 150 200 250 300
Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar.
Approx. 270 thousand
(thousand policies)
Number of auto insurance contracts (written basis*) / cumulative
(Excluding continuing contracts, expiring contracts, and early-withdrawals)
Number of contracts written during FY2010 was approx. 144,000, a 58.0% year-on-year increase
SBI Insurance:
Compound Annual Growth Rate Compound Annual Growth Rate
(Mar. 2009 (Mar. 2009 – – Mar. 2011)
156.4 156.4% %
* Written basis: Completion of receipt of insurance premium
2009 2010 2011
(As of end of May)
thousand
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(Example 1) SBI SECURITIES Supporting businesses (Example 2) SBI Sumishin Net Bank Supporting businesses (Example 3) SBI Insurance Supporting businesses
Focusing on each core business, we will allocate affiliated companies and businesses that possess core business support companies and businesses that possess core business support functions functions, and aggressively pursue synergy effects with each core business in order to differentiate ourselves from our competitors, thereby promoting exponential growth in each core business. Pentagon Management of the Financial Services Business (3):
Securities Banking
Non-life Insurance
Life Insurance Settlement Services
Su Sup pporting porting businesses businesses Su Sup pporting porting businesses businesses Su Sup pporting porting businesses businesses Su Sup pporting porting businesses businesses
SBI SECURITIES
Su Sup pporting porting businesses businesses
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Synergy Synergy Synergy Synergy Synergy Synergy Synergy Synergy Synergy
Provision of FX market infrastructure and systems for 20 pairs of currencies Provision of evaluation and other information of financial products
The largest number of accounts in online securities
Financial agent tailored to investment trusts Operating “Japannext PTS”, the largest PTS market in Japan Providing online news and articles of the world that are influential to stock markets in the Japanese language The largest information website about China 94.3 mil. PV a month 5.99 mil unique user a month
(as of the end of May 2011)
* May 2011
(Example 1) SBI SECURITIES and Supporting companies
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100 200 300 400 500
Jun. Jul.
5 10 15 20
Monthly Daily avg. (bil. yen)
SBI SECURITIES*2, Rakuten Securities*2, GMO CLICK Securities*2, Goldman Sachs Japan, Credit Suisse Securities (Japan) Limited*2, Merrill Lynch Japan Finance Co., Ltd.*2, UBS Japan, Morgan Stanley MUFG Securities, Instinet, BNP Paribas Securities (Japan) Limited, Deutsche Securities, Citigroup Global Markets Japan, Societe Generale Securities, JPMorgan Securities
*3, Mizuho Securities*3, Barclays Capital Japan
Limited *3
[Participating companies] (16 in total)
Change in monthly value
(From Apr.2010 to May.2011)
Daiwa Capital Markets, Nomura Securities, and two other companies
2010 2011
Monthly value comparison of domestic PTS
(FY2010)
(*1) The figure for Chi-X is average value for 8 months (from Aug. 2010 to Mar. 2011), as it started operations on Jul.29, 2010
Market Monthly avg.
Japannext Japannext PTS PTS 193.6 193.6 bil bil yen yen Chi-X Japan 139.0 bil yen
(*1)
(*) Trading value is based on “single count”. Figures are compiled by SBI Japannext.
[Companies expected to participate] (4 in total)
*2 Capital participation *3 Newly connected in 2011
No.1 in No.1 in Japan Japan! !
421.4 351.8 379.5 19.1 17.5 285.8 15.0
(bil. yen)
Continuing Its Strong Performance Since the Previous Year, Continuing Its Strong Performance Since the Previous Year, “ “Japannext PTS Japannext PTS” ” Steadily Increases Its Trading Value Steadily Increases Its Trading Value
19.9
2011 was 26.6 26.6 bil
. yen, which was equivalent to 2.4%
2.4% of TSE 1st
section New Record!
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SBI Japannext PTS:
time Trading Value 2009 (Jan. to Dec.) 2,992.8 bil. yen 2010 (Jan. to Dec.) 3,135.6 bil. yen 2011 (Jan. to May.) 4,020.5 bil. yen
Trading Value of domestic PTS
As of May, the trading As of May, the trading value already exceeded that value already exceeded that
+4.8%
— —A turning point came last summer when A turning point came last summer when Japan Securities Clearing Corporation, a cross Japan Securities Clearing Corporation, a cross-
market clearing organization established by securities exchanges, began to assume securities exchanges, began to assume
(Source) Japan Securities Dealers Association
(June.23 ,2011 Mainichi Shimbun Morning Edition)
Newspaper article
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(Order) Order
Japannext PTS Stock exchange
Order
SOR systems automatically choose favorable market/price and place an order
Choose a market
SOR function PTS transaction fee comparison among 5 online brokers
contracted price per order SBI Kabu.com Monex Rakuten Matsui
Up to 100,000 yen 138 yen
184 yen
340 yen
340 yen 840 yen
340 yen 340 yen 1,050 yen
10,500 yen
559 yen 798 yen 21,000 yen
958 yen 1,218 yen 31,500 yen Over 30,000,000 yen 1,197 yen (*1) (*2) 1,575 yen 472 yen 1,050 yen 378 yen 500 yen
New fee structure was started on Jun. 27!
SBI Japannext PTS:
Change in order process due to the introduction of the SOR service (image)
Favorable
— Offers the lowest level of fee structure for PTS —
(*1) For amounts in excess of 10 million yen, 42 yen per 1 million yen is added (*2) 1,050 per 1 million yen is added. Note) The above is a comparison of basic fees and does not take into consideration campaigns at each company. Fees of SBI SECURITIES are for the Internet plan. (As of June15. Source: Compiled by SBI SECURITIES from Website information disclosed by each company)
SBI SECURITIES
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face-to-face sales
trusts for beginners
investment trust
tools, ”F search”
SBI 1,088 Rakuten
1,066
Monex
460
kabu.com
460
Matsui
1
Synergy Synergy
( (ⅱ ⅱ) )SBI SECURITIES and Morningstar Japan / SBI Fund Bank SBI SECURITIES and Morningstar Japan / SBI Fund Bank
*As of Jun.15, 2011. Including foreign currency- denominated MMF, MMF, MRF, and initially offered investment trusts
Number of investment trusts* brokered by each online broker
28 1.95 2.70
3.50
1 2 3 4 FY2008 FY2009 FY2010
SBI Monex Rakuten kabu.com Matsui
(bil. yen)
217.8
479.0
388.8 278.1 140.3
100 200 300 400 500
FY2006 FY2007 FY2008 FY2009 FY2010
SBI SECURITIES’ sales of investment trusts steadily increase to be way ahead of others
Balance of investment trusts at FY-end (SBI SECURITIES)
Up 23.1% YoY
(bil. yen)
Revenues* from investment trust business at 5 online brokers
* Sum of sales commissions and trust fees (trust fees include MRF)
Up 29.8% YoY SBI SECURITIES:
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10.2 7.1 5.1 4.6 4.5 5.3 8.2 6.3 10.2
5 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2009
Further strengthen the efforts to expand sales of investment trusts
Started soliciting subscriptions for investment trusts dedicated to the “Asset Doubling Project,” conducted jointly by four domestic online securities companies. First in the series (launched on June 20) Second in the series (launched on June 27)
(100 mil. yen)
Quarterly change in daily sales of investment trusts
FY2010 FY2011
*Including MMF and China Fund
SBI SECURITIES:
As of Jun. 27 latest number
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Became subsidiary in Feb. 2010 Became subsidiary in Feb. 2010
Searchina
Overseas information such as that of China
Searchina
Overseas information such as that of China
Morningstar Japan/ Kabushiki Shimbun
Information about Japanese equities and investment trusts
Morningstar Japan/ Kabushiki Shimbun
Information about Japanese equities and investment trusts
WSJ Japan Edition
Overseas economic information from an unique standpoint
WSJ Japan Edition
Overseas economic information from an unique standpoint
JV with China Securities Journal
Information provision through the utilization of Xinhua News Agency Network,
JV with China Securities Journal
Information provision through the utilization of Xinhua News Agency Network, Establishment of JV in Jun Establishment of JV in Jun. 201 . 2011 1
Morningstar Inc.
Distribute stock report in US, UK, Switzerland, China, India and Brazil to Morningstar Japan
Morningstar Inc.
Distribute stock report in US, UK, Switzerland, China, India and Brazil to Morningstar Japan
To capture demand for economic and financial information on Indi To capture demand for economic and financial information on India, a, Vietnam and other regions where high growth is expected, Vietnam and other regions where high growth is expected, we will expand and enhance the financial information content we will expand and enhance the financial information content business on a worldwide scale going forward. business on a worldwide scale going forward.
Comprehensive financial portal site Comprehensive financial portal site
launched in Sept. 2010 launched in Sept. 2010 Aug Aug. . 1998 1998 Website Launched Website Launched Dec Dec. . 2009 2009 Servic Service e Launched Launched
T To start wire report soon
(plan plan) )
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China Securities Journal China Securities Journal
Established on June 16, 2011
a wholly owned subsidiary of a wholly owned subsidiary of Xinhua News Agency Xinhua News Agency
About China Securities Journal
Chinese investors. (fund award: held 7 times, listed company award: held 12 times)
authority, including Beijing, Shanghai and Shenzhen, and from the Xinhua News Agency’s overseas bureaus
terms of number of copies printed in China
Advertising Company from CSJ to the new company
years) and a fund database (covering the last 10 years), which China Securities Journal has accumulated
China Securities Journal in cooperation with Nasdaq
CSJ-SBI Financial Media Co., Ltd.
(Chinese Name: 上海新証財経信息咨詢有限公司)
43% 57%
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Morningstar Japan, Wall Street Journal Japan:
registered stocks and funds of interest
categories
Distribution of comprehensive financial information including foreign stocks, overseas mutual funds and global news Also, promoting provision of information utilizing SNS such as Twitter and Facebook Distribution of all articles of the Wall Street Journal Japan, known for its macroeconomic analysis and insightful commentary
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SBI SECURITIES:
Bolster Brokerage of Emerging Market Equities to Offer Opportunities to Invest in the Countries which Have High Economic Growth Potential
U.S. stocks: Chinese stocks: Korean stocks: Russian stocks:
Equities Brokered
Vietnamese stocks:
(Aug. 2003-) (Mar. 2005-) (Jan. 2011-) (May 2005-) (Nov. 2009-)
NYSE, NYSE Arca, NASDAQ-listed U.S. stocks, U.S. ETF, ADR (American Depository Receipts)
Hong Kong Stock Exchange Main Board and GEM-listed Chinese stocks, China ETF, HDR (HK Depository Receipts)
Stocks listed on the Korea Stock Exchange and over-the-counter market
MICEX stocks In principle, all stocks listed on HoChiMinh Stock Exchange and Hanoi Stock Exchange
Indonesian Stocks (in preparation)
34 *Including sale on commission
SBI SECURITIES:
788 1,636 1 6 145 99 6 3
942 1,746
500 1,000 1,500 2,000
Brokerage commission Underwriting and selling commissions Other commissions received Trading gain
FY2009 FY2010
Change in revenues from bond business (mil. yen)
+85.3% YoY
Foreign bond issues brokered by each online broker
(FY2010: counted on issuance day basis)
Not offered at kabu.com Securities and Matsui Securities
SBI SECURITIES brokered the most among the major
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(mil. yen)
Average daily foreign bond sales (by quarter)
107.8 140.3 128.1 98.7 134.3 45.0 46.5 49.9 28.0
50 100 150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
We started to handle yuan-denominated China Government Bonds (already-issued bonds) on May 16. As a result, we now handle foreign- currency denominated existing bonds in 11 currencies, the highest number among major online securities companies FY2009
FY2010 FY2011
Besides this, sold SBI Bonds worth a total of 30 billion yen in 1Q
SBI SECURITIES:
As of Jun. 27 latest number
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0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Nikkei 225 Futures Nikkei 225 mini Nikkei 225 Options
SBI’s share of futures and options trading (monthly)
SBI SECURITIES’ share of futures and options trading is on the increase. In particular, its share of Nikkei 225 options trading rose to 54.0% in May
2011 2010
54.0% 31.2% 28.8%
* Calculated based on the share of SBI SECURITIES to the total individual stock trading volume disclosed by the Osaka Securities Exchange.
SBI SECURITIES:
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Providing Stable Trading Opportunities for Customers of SBI SECURITIES and SBI Sumishin Net Bank by Increasing Counterparties
Provide rates
21 major financial institutions both inside and outside Japan
Order
have already participated as counterparties
(Started on Nov. 17, 2008) (Started on Jan. 18, 2010)
Other securities or FX companies etc.
Individual Investors
+ +
Seeking further liquidity through Seeking further liquidity through addition of new participants addition of new participants
[SBI SECURITIES]
Order
Provide rates
Order
Provide rates
Provide rates Covering transaction
Counterparties (21 major financial institutions in Japan and abroad)
*1. New participants in FY2009 (5 companies) *2. New participants in FY2010 (4 companies)
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Leverage regulation was applied in Aug. 2010 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. SBI Monex Matsui kabu.com
2007 2008
(Unit: bil. yen)
SBI Matsui
kabu.com
Monex
5,737.0 bil. yen 1,047.5 bil. yen 405.6 bil. yen 2,000.9 bil. yen
Trading Value in May 2011:
*2
2009
*1 Four online securities firms that disclosed the information (SBI SECURITIES, Monex, Matsui and kabu.com) *2 Trading value total of “SBI FX” and “SBI FXα” from Nov. 2008 to Feb. 2009
2010
FX margin trading value of the four major online securities comp FX margin trading value of the four major online securities companies anies *1
*1
In Nov. 2008 started FX margin trading utilizing SBI Liquidity Market
SBI SECURITIES：
Source: Complied by SBIH from disclosed information
2011
Already a major source of earnings in the securities business, trading value remains high even after enforcement of leverage regulation
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(bil. yen)
Average daily FX margin trading value (by quarter)
275.1 300.4 235.2 290.6 227.6 242.8 290.8 274.9 144.9 283.8 216.5 21.6 76.5
100 200 300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2008
FY2010 FY2011 FY2009
FX Margin Trading has rapidly expanded by utilizing SBI Liquidity Market, and continues to be steady even after enforcement of leverage regulation in August 2010
SBI SECURITIES:
As of Jun. 27 latest number
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13.2 40.1 45.7 47.9 60.9 37.7 9.2 28.4 27.9 37.9 31.9 29.0 34.2 2.6 4.3 27.7 18.7 19.2 15.7 10.2 20.9 12.9 7.2 9.8 3.6 1.2 1.9 0.1
Nomura Securities Monex Rakuten kabu.com Matsui SBI
Major Online Securities Companies' Composition of Consolidated Operating Revenues in FY2010 (%)
Commissions Underwriting/sales commissions Offering/sales commissions Financial revenues Others Trading gains/losses <Reference>
Source: Company websites and earnings releases (Figures of Nomura Securities are based on Japanese standards) *Figures are as of FY2010 full year
Diversify Earnings Toward a Business Structure Less Reliant on Stock Brokerage Trading by Synergies with Supporting Businesses
Pursue enhancement of wholesale business to increase underwriting fees and other revenue, not only from newly listed stocks, but from publicly offered stocks and bonds as well
SBI SECURITIES：
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SBI Auto Support has been in the black since 4Q of FY2010.
(Example 2) SBI Sumishin Net Bank Supporting Businesses
Cumulative auto loans outstanding
(Aug. 2009 – May 2011)
15,000 30,000 45,000
Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr.
2009 2010 (mil. yen) 2011
42,803
Via:
Others
(Credit companies etc.) * Figures in parentheses
are ratios Providing auto loans through network of approx. 4,533 participating stores including used car dealers
(52.1%) (23.7%) (24.2%)
Auto loans outstanding expanded approx. 4.8X in the past year Auto loans outstanding expanded approx. 4.8X in the past year
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Cumulative number of InsWeb estimation service users topped 5.00 million !
参加損害保険会社等：22社
Other life insurance companies, non-life insurance companies and financial institutions etc.
Life insurance personal pension, educational endowment insurance, overseas travel insurance, fire insurance, motorcycle insurance, driver insurance, golf insurance, leisure insurance, pet insurance ,etc
Insurance estimate and comparison website, “Insurance Market Place” InsWeb (Example 3) SBI Insurance Supporting Businesses
InsWeb neutrally introduces the most suited products to customers; not
An insurance portal providing cost estimates and documents quickly upon request
Automobile insurance
Participation by 20 companies
InsWeb
* Participating companies are as of Jun. 15, 2011. The number of the service users is cumulative total users from Apr. 2000, when it started its operation, to May 2011.
Available on smart phones
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Breakdown of contracts through websites for Breakdown of contracts through websites for comparisons and estimates comparisons and estimates (index) (index)
100 200 300 1H 2H 1H 2H
Others (outside the SBI Group) SBI Holdings InsWeb
* The number of contracts in Apr.–Sept. 2009 =100
FY2009 FY2010 62 38 113 91 115 112 87 65 Share of new contracts through “websites for comparisons and estimates”
Through websites for comparisons and estimates:
81.8%
(Oct. 2010– Mar. 2011)
Others: 18.2%
Comparison of number of contracts at SBI Insurance by channel Comparison of number of contracts at SBI Insurance by channel
InsWeb's share of new contracts through websites for comparisons and estimates 62%
*Excluding direct contracts at SBI Insurance
Over 80% of contracts are obtained from “websites for comparisons and estimates”, of which InsWeb accounts for over half
58% 55% 51%
SBI Insurance:
44
The face-
to-
face channels, such as SBI Money Plaza, will be expanded across Japan Japan to serve as an infrastructure business that will propel growth i to serve as an infrastructure business that will propel growth in the five n the five core businesses and advance the fusion of the online and face core businesses and advance the fusion of the online and face-
to-
face services. This will enable the organization to provide, on a neutral basis, comparably superior products to customers whether inside or outside of the Group, so that the SBI Group may become Japan's largest financial product distributor.
Pentagon Management of the Financial Services Business (4)：
Securities Banking
Non-life Insurance
Life Insurance Settlement Services
Supporting businesses Supporting businesses Supporting businesses Supporting businesses Supporting businesses System solution Business Common Infrastructure capital SBI Money Plaza
SBI SECURITIES
45 (*1) as of June 29, 2011 (*2) “Securities agency” here represents that of SBI SECURITIES (*3) “Housing loans& Insurance” here represents SBI Mortgage’s “SBI Money Plaza/ Housing loan Shop” (*4) Some shops do not provide some products and services
Housing loans& Insurance：107shops Securities agency：142shops
* 19 shops operate both dealing of mortgage loan and insurance securities agency
・1 sales person for 1 customer ・ Sales person provides advice and investment information for your trades
Mortgage loan, fire insurance, life insurance, and related consulting services Opening new account at SBI SECURITIES and investment consulting services
46
System Know-how Expertise
By introducing the systems and know-
how of our core businesses accumulated in Japan tandem with the economic development of the accumulated in Japan tandem with the economic development of the emerging countries emerging countries, SBIH will be positioned to promote the development of the financial services business in those countries. Pentagon Management of the Financial Services Business (5)：
Securities Banking
Non-life Insurance
Life Insurance Settlement Services
Supporting businesses Supporting businesses Supporting businesses Supporting businesses Supporting businesses System solution Business Common Infrastructure capital SBI Money Plaza
Overseas Overseas Overseas Overseas Overseas
SBI SECURITIES
47
2.24 mil. accounts as of May 2011
SBI Phnom Pehn Securities
Vietnam Cambodia
637 Vietnamese stocks
(Since Jan. 2011)
Cambodian stock including IPOs of state-
(scheduled)
Indonesian stocks (in preparation)
Indonesia
Securities Business：
Hong Kong Russia
41 Russian stocks
(Since Nov. 2009)
1,372 Chinese stocks
(Since Mar. 2005)
(Jointly operates a VC fund and invested in OBIBANK, a subsidiary of the group, with 50% shareholding)
(shareholding: 100% ) (shareholding: 20% ) (shareholding: 2.79% )
(scheduled for 25% investment, acquired the license on the capital investment from financial office on Jun. 28)
[SBI SECURITIES] Expand provision of foreign stocks collaborating with
48
Year established: 1994
*FX rate: 1 RUB = 2.89 JPY (as of Jun. 7, 2011)
A commercial bank of METROPOL Group, Russia’s leading financial group
*
(50% shareholding)
Banking Business: The know-how of online banking business, cultivated in Japan
49
50
Financial ecosystem
Real estate ecosystem Life-related ecosystem System ecosystem
Placed top priority on scale expansion and establishment of business ecosystem For a decade since our founding From FY2010
Strengthening group synergy and heightening profitability through advancement of “Pentagon Management” business strategy for the financial services business Realizing transition “from Japan's SBI to the world's SBI” through the transference of our financial ecosystem
51
The SBI Group The SBI Group's 51 Major Business Entities 's 51 Major Business Entities (Excl. 7 o (Excl. 7 overseas local verseas local subsidiaries and subsidiaries and representative representative offices)
FY2010 FY2009 SBI Global Investment achieved full-year profitability
SBI Holdings
Operating Income: 0.2 billion yen Operating Income: 4.3 billion yen
Profitable companies and divisions Unprofitable companies and divisions
Newly established or acquired companies:
New group companies which started operation or were acquired after April 2009 (Note) Consistently profitable companies in “Newly established or acquired companies” have been moved to “Profitable companies and divisions”
The SBI Group's Major Business Entities Engaged in “Brilliant Cut”
28 companies and divisions Total operating profit: 26.0 bil. yen 12 companies and divisions Total operating loss: 4.7 bil. yen 30 companies and divisions Total operating profit: 26.8 bil. yen 11 companies and divisions Total operating loss: 7.1 bil. yen 10 companies 9 companies
Group companies (7): Wall Street Journal Japan (established in May 2009), SBI Credit (became a consolidated subsidiary in July), SBI Global Investment (became a consolidated subsidiary in June), Korea Technology Investment Corporation (became a group company in July), etc. Companies preparing for start of operations(3): JV with China Securities Journal, Preparation for life Insurance company, and SBI Phnom Penh Securities
52
Toward further profitability through mutual synergies (especially by advancing the “pentagon management” )
Targeting profitability within 3 years (3 years from establishment
for new companies) by utilizing resources in the Group and
pursuing Group synergies.
*Companies with no prospects of profitability are to be liquidated or sold
New companies will not be established except for those currently under preparation Limited only to profitable companies that can be expected to bring strong synergies to the SBI Group companies
Announced at 1Q FY2010 Results Announcement on July 29, 2010
53
Examine each companies' earning capacity by taking into account B/S and C/F situations as well as change in operating profits EBITDA EBITDA Growth rate Examine earnings efficiency against invested capital Examine cash-flow generated by invested capital Monitor each company's performance situation, as well as their change in operating profits
ROE ROI
54
ROE ROI EBITDA EBITDA Growth rate SBI SECURITIES 4.9 4.2 12.62
SBI Mortgage 21.1 35.2 3.07 +73.6 2.07 1.37 1.08 SBI Liquidity Market 48.4 404.6
SBI VeriTrans 24.3 77.4 +17.7 SBI Investment 10.1 6.0 +12.4 Indicators calculated from major companies' * FY2010 performance
(%, billion yen)
* Consolidated subsidiaries with over 1 billion yen of operating income in FY2010
55
SBI VeriTrans to be delisted, through a share exchange with SBI Holdings.
(Announced by SBI Holdings on Feb. 24, 2011)
As SBI rolls out various Internet-based financial services overseas, the EC settlement services becomes a key growth sector. SBI VeriTrans Co., Ltd. is a provider of EC settlement services within the SBI Group. Having made this firm a subsidiary, SBI will work to accelerate the overseas development of the EC settlement services business.
(Announced by Morningstar Japan on May. 20, 2011)
Gomez Consulting was delisted, having become a wholly owned subsidiary through an exchange of shares. A more integrated approach to the management of the two companies will allow cost reductions and enhanced sales capabilities, since they operate in closely related business fields. (Savings of about 15 million yen annually is expected, just for the elimination of the listing-related expenses for Gomez.)
Pursue further management efficiency
56
substantial system cost reductions
Objective: 25-40% reduction of system costs (currently 15 bil. yen per annum) in 3 years.
venture with US partner, was terminated and dissolved
Achieved a single-month profit in April
57
(Equity-method company / The loss: approx. 1.1 bil. yen) (Non-consolidated subsidiary / The loss: approx. 1.1 bil. yen)
There are some companies looking to obtain an equity stake in or acquire the company with an eye toward the industry reorganization. We will determine our response policy in the next one or two years. There are domestic and international companies and investors which are interested in holding share of SBI ALApromo in anticipation of its future
prospects for collaboration in relevant business fields or other fields. We plan to maintain an equity stake of over 50 percent and may sell the remaining stake sequentially.
Plan to implement a policy this year for a thorough review of the business.
(Consolidated subsidiary / The loss: approx. 3.5 bil. yen)
58
14,763 12,810 3,159 3,381 17,913 18,189 14,667 14,950 1,087 1,045 1,114 2,365 2,354 2,507
10,000 20,000 30,000 40,000 50,000 60,000 FY2007 FY2010
Employment cost Commission paid & others Rent expenses A d expenses Lease expenses Compensations Others
Breakdown of controllable costs (unit: mil. yen, figures in parentheses are amount of change)
From Oct. 2008, each company has one in duty of cutting costs, for cost reduction Controllable costs of FY2010 is 2,534 mil. yen less then FY2007, a year before Lehman shock Restrain from freshman recruiting due to coming reposition of employees related to the Group reorganization
*Amortization etc. refers to amortization of goodwill and noncurrent assets, allowance for bad debts, and so forth
FY2007 (before Lehman Shock) FY2010 (the latest FY) Amount of change Total SG&A
64,616 64,613
53,888
2,531 10,724
Controllable costs
56,423
Amortization etc.*
8,192
53,888 (-2,534) 56,423
59
6,001 7,764 7,889
5,000 10,000 15,000 20,000 25,000
(mil. yen)
FY2008 FY2009 FY2010
+40.4% +6.4%
(EBITDA=operating income + allowance for depreciation + goodwill amortization)
Under IFRS, which SBI plans to voluntary Under IFRS, which SBI plans to voluntary adapt from FY2012, amortization of adapt from FY2012, amortization of goodwill will no longer be recorded as an goodwill will no longer be recorded as an
EBITDA for FY2010 improved significantly to 22,149 mil. yen, up 40.4% YoY
60
61
62
63
financial institutions and governmental or university investment institutions.
64
Singapore Singapore U.S. U.S. South Korea South Korea Brunei Brunei Abu Dhabi Abu Dhabi Hungary Hungary Russia Russia
Jefferies Major U.S. securities company MFB Invest Ltd. Wholly owned subsidiary
Development Bank IFC Metropol Leading Russian Financial Group Subsidiary of a Abi Dhabi Governmental ADICv Singaporean governmental investment group Brunei Darussalam Ministry of Finance
China China Malaysia Malaysia
PNB Equity Resource Corp. Malaysian Govt' Investment Management Company
Vietnam Vietnam
FPT Group Vietnam leading multinational IT company
Brazil Brazil
Jardim Botanico Investimentos
源裕投資
SBI Investment Korea
Established global investment structure through formation of JV funds with local partners such as finanical institutions, government agencies and universities
65
Fund name Establishment Partners Commitment amount
Investment ratio
New Horizon Fund
May 2005
TEMASEK 100mil.USD 50% SBI & TH VC Fund
Jan 2008
Tsinghua Holdings 34.5mil.USD 87.1% SBI & BDJB China Fund
Beida Jade Bird 100mil.USD 50.1% Fudan University Fund
Late 2011 (plan) Fudan University (Shanghai)
76.3 mil. USD 10-20% Africa Fund
Invest AD (Abu Dhabi)
50% Turkey Fund
2011 (plan)
Invest AD (Abu Dhabi)
50% Brazil Fund
Late 2011 (plan) Jardim Botânico Investimentos
50% SBI Zhaoxin Fund
China Merchants Securities, Resource Capital China, China CITIC Bank
Offshore：approx. 20.5mil.USD (SBIH) Onshore： approx. 9mil.USD (onshore)
SBI & Capital 22 JV Fund
Founder of a Taiwanese IT company
22.5mil.USD 66.7% Vietnam Japan Fund
FPT 76.5mil.USD 96.3% SBI SOI Fund
Keio University
100% SBI European Fund
May 2009
MFB Invest Ltd., a wholly owned subsidiary of the Hungarian Development Bank
100mil.EUR 60% Malaysia Fund
PNB Equity Resource Corporation
50mil.USD 50% SBI-METROPOL Investment Fund
IFC METROPOL 100mil.USD 50% SBI-Islamic Fund
Brunei Darussalam, Ministry of Finance
59.4mil.USD 50% SBI-Jefferies Asia Fund
Jefferies & Group, Inc 50mil.USD 80% Jefferies-SBI USA Fund
Jefferies & Group, Inc 150mil.USD 50%
* Conversions effected using exchange rates as of the end of March,2011
66
1 8 1 9 4 8 6 5 16 1 5 10 15
FY2005 FY20006 FY2007 FY2008 FY2009 FY2010
Ovearseas Japan
*
*
From the start of operations in July 1999 to the end of March 2011, the Group invested in 833 companies, of which 141 companies conducted IPOs and M&As (percentage: 16.9%)
*1 includes portfolio companies (FY2009: 3 companies, FY2010: 6 companies) of New Horizon Capital, the second fund, in which SBIH invested as a limited partner.
67
China's largest real name SNS
Monthly SNS Users in China (Sept. 2010)
Source: iResearch
One of the largest daily deal websites in China
Listed on NYSE on May 4
(SBI Group's shareholding ratio: 1.86%)
*including residual securities
Operation of China's Largest SNS, etc.
Listed on GTSM (Taiwan) on April 6 Operation of EC mall in Taiwan
(SBI Group's shareholding ratio: 4.24%)
As of Mar. 2011
117 mil. users
(10 thousand)
68
75% 80% 85% 90% 95% 100% 105%
USD/JPY CNY/JPY
Source: Bloomberg
2010
Figures as of Sept. 16, 2008 = 100%
Weaker yen Stronger yen 2011 2009 2008
Change in foreign exchange rates after Lehman Shock
(from Sept. 16, 2008 to Jun. 16, 2011) Change from Sept. 16, 2008 (as of Jun. 28, 2011) USD/JPY
CNY/JPY
69
9.59 8.32 42.72 60.62 10 20 30 40 50 60 70
Total Market value of IPO’d companies is 22.3 bil. yen (+19.2 bil. yen from investment cost)
Total commitment amount of Group’s overseas funds (SBI’s shareholding)
(bil. yen)
(Break down)
Of the total commitment amount for overseas funds of 60.62 billion yen (SBI’s interest)*, 70.4% will be paid in the future. Therefore, investment cost will be reduced substantially with the progress of the yen’s appreciation.
(As of March, 2011)
* Total amount of the funds (based on financial summery of FY2010) which SBI invested as GP, New Horizon Fund 2 and New Horizon Fund 3 (Exclude New Horizon Fund 1 which is in harvest period ). FX rate is as of March 31, 2011
Unpaid, waiting for capital call Paid, not invested yet Paid, invested
(Investment cost)
Remaining term of the fund: avg. 4 years
(+2 yeas for extension option)
Capital collected is to be reinvested
70
etc.) utilizing partnerships created through establishment of
71
100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1988 1992 1996 2000 2004 2008
China Japan
(yen) (year)
Discussion based on comparison between post-war Japan and current China
※China’s GDP per capita is calculated from RMB to JPY with FX rate in each year Source: Economic and Social Research Institute, Cabinet Office, Government of Japan
Nominal GDP per capita in China is approximately the same as that in Japan in the late 1950s.
China is expected to enter a period of high growth on a full-scale basis going forward, like Japan in its post-war period.
Today’s China Postwar Japan
1956 1960 1964 1968 Japan maintained nominal GDP per capita growth of about 17% from 1966 to 1970. The four major pollution-related diseases arose in Japan in its high- growth period, and environmental pollution issues came to the surface in China in the 1990s.
Today’s China Post war Japan
a period of High economic growth
Started investment in 2005
Comparison of change in nominal GDP per capita between postwar Japan and today’s China
Japan-China Economic Association
72
1960 1965 1970 1975 1980 1985 1 electric equipment electricity and gas transportation equipment electric equipment iron and steel Chemical finance and insurance commerce food textiles land transportation finance and insurance finance and insurance finance and insurance finance and insurance 2 transportation equipment electric equipment electric equipment electric equipment electric equipment 3 Chemical Chemical commerce Chemical Chemical 4 primary metal electricity and gas transportation equipment transportation equipment commerce 5 iron and steel transportation equipment construction commerce electricity and gas 6 food construction Chemical electricity and gas transportation equipment 7 Commerce commerce iron and steel iron and steel construction 8 textiles iron and steel electricity and gas machinery machinery 9 electricity and gas machinery machinery construction food 10 finance and insurance food food food land transportation
(Counted in December in each year) Source: TSE Annual Statistics
The finance and insurance industries have grown substantially from their high-growth period of the 1960's. During the economic high growth phase, they maintained a position of leadership as the industry infrastructure that supported the economy
The emerging market countries are also likely to experience a similar transition that Japan did
73
Company Industry Market Cap.
(mil. USD)
Oil, Gas
329,260 246,420 191,517 152,290 133,902 122,533 84,506 58,930 57,386 52,710
Bank Bank Bank Oil, Gas Life insurance Coal mining Bank Life insurance Bank PetroChina
Industrial and Commercial Bank of China
China Construction Bank Bank of China Sinopec China Life Insurance China Shenhua Energy Bank of Communications Ping An Insurance China Merchants Bank 1 2 3 4 5 6 7 8 9 10
Source: FT500 companies *As of the end of May 2010
In rapidly growing China, financial institutions already comprise most of the top 10 largest companies
74
Russia Russia China China Cambodia Cambodia Sri Lanka Sri Lanka Vietnam Vietnam Indonesia Indonesia Kingston Financial Group
financial sector in HK and the Chinese mainland.
Hong Kong Hong Kong BNI Securities
Deployment of Overseas Financial Service Businesses Looking at Growth of Emerging Countries’ Financial Institutions
Invests in financial institutions, such as securities, banking and insurance depending on the economic growth of each countries .
OBIBANK * Bank
Commercial bank in METROPOL Group Entry into online banking business in Russia
with 50% investment. Nonlife insurance
Tianan Insurance Tien Phong Bank FPT Securities
Securities
Bank
20% shareholding
Indonesia in diverse areas
Bank
Acquired 40% of shares at establishment
Phnom Penh Commercial Bank
Acquired a securities business license as
the first Japanese company in Oct. 2010 Securities
Bank
8.51% shareholding Largest nongovernmental commercial bank 3.00% shareholding The second largest nongovernmental
commercial bank * Including plans Securities Securities
75
Ratio of overseas companies in sales of investment security (including dividend and interest) in Asset Management Business
(16 out of 17 companies)
FY2010
Ratio of equity-method investment profit from the overseas financial institutions below, in ordinary profit of the Financial Services Businesses
76
77
3rd stage: Creating network value by organically coordinating the Group’s domestic and overseas businesses
Examples: (1) Building a system for providing integrated support to venture companies by utilizing overseas investment funds, securities companies, and banks. (2) Promoting the introduction of on-line systems at the financial institutions which the SBI Group has a stake, in accordance with the degree of the Internet penetration, and recovering the investment costs by offering systems and know-how. (3) Expanding the overseas businesses of the domestic Group companies with an eye toward listing
(4) Supporting fund procurement and other activities of Japanese companies operating businesses in
companies in which the Group has a stake). (5) Sharing opportunities for investments and loans with financial institutions which the Group has stake in and overseas partners. (6) Founding global Underwriting system for securitization of state-owned enterprises accompanied with their Privatizations (7) Set out to be more entrusted with governmental funds
1st stage: Establishment of an investment structure in overseas 2nd stage: Transference of financial services to overseas
etc.
78
Asset Management Business (Fund, Company) Financial Service Business (Investee) Global Synergy Hong Kong
Kingston Financial Group (Securities) SW Kingsway (Securities) Offering Chinese stocks (SBI SECURITIES)
Vietnam
Vietnam Japan Fund Tien Phong Bank FPT Securities Provision of Vietnamese stocks, IPO deals related to privatizations (SBI SECURITIES)
Cambodia
Phnom Penh Commercial Bank SBI Phnom Penh Securities Provision of Cambodian IPO deals related to privatizations (SBI SECURITIES)
Asian Region
SBI-Jefferies Asia Fund SBI-Islamic Fund PNB-SBI ASEAN Gateway Fund
Sri Lanka
Commercial Bank of Ceylon Hatton National Bank
Indonesia
BNI Securities Provision of Indonesian stocks, IPO deals related to privatizations (SBI SECURITIES)
Hungary
Hungary Fund
Turkey
Turkey Fund
Korea
SBI Investment Korea
The U.S.
Jefferies-SBI USA Fund
China
New Horizon Fund SBI & TH VC Fund SBI & BDJB China Fund SBI Zhaoxin Fund
Taiwan
SBI & Capital 22 JV Fund SBI-METROPOL Investment Fund Africa Fund Brazil Fund
Russia Africa Brazil
Tianan Insurance (Nonlife insurance) Transfer SBI Insurance’s online business expertise to Tianan Insurance OBIBANK Provision of Indonesian stocks (SBI SECURITIES) Transfer online banking expertise to OBIBANK
* Including plans
Concentrate on Creation of Global Synergies besides Asset Management Business and Financial Service Businesses
79
Tien Phong Bank Bank FPT Securities Securities JV fund
Underwriting at IPO and PO Loans Seed money
Vietnam Japan Fund
(e.g.)
Vietnam
Example (1)：Forms Integrated Support Structure for Overseas
80
Know-how of online banking business Know-how of online nonlife insurance business We will strive to increase the corporate value of each company by introducing on-line systems and export systems and know-how. In this way, we will receive fees and recover the system development costs which the Group has incurred so far. Introducing on-line systems in accordance with the degree of the Internet penetration in each country.
(Precedents)
Example (2):
81
(mil. yen,%)
FY2010 YoY
Operating Revenue
Operating Income
Ordinary income
Net Income
Financial result of SBI Mortgage
Example (3)-<1>:
(June 6, 2011 “The Nikkei” newspaper morning edition)
Newspaper article
82
Head office: Head office: China Mergers & Acquisitions Association
Members: More than 14,000 corporate members who conduct M&A related businesses in China Main activities: Operating “Mergers-China”, an Internet portal for information sharing and publishing reports such as “China M&A Yearbook” and “China Industrial Map,” and holding the “China M&A Annual Conference” with the full support of the Chinese government
Providing opportunities to share Providing opportunities to share useful information between its useful information between its members in both countries members in both countries
Japan Branch Japan Branch： ： China Japan M&A Club
(SBI funded establishment capital)
(e.g.) Utilizing Utilizing “ “China Japan M&A Club, China Japan M&A Club,” ” which was established to be which was established to be specialized institution to support Cross specialized institution to support Cross-
border M&A
Example (3)-<2>:
SBI SECURITIES Also expecting to utilize Also expecting to utilize domestic networks to expand domestic networks to expand M&A business M&A business
83
Example (3)-<3>:
Overseas partners
Strategy Strategy JV companies M&A etc. Strategy Strategy
M&A etc.
Investee Companies
(SBI Investment)
Enables overseas business development
Strategy Strategy
Chinese Chinese companies in companies in network of CMAA network of CMAA
China Japan M&A Club
Affiliated companies of JV companies
China Mergers & Acquisitions Association
84
Others 27.2% The other Asia 27.1% EU 10.5% China 23.4% U.S. 11.8% U.S. 27.4% China 6.4% EU 17.0% The other Asia 23.6% Others 25.6%
[Share of each country (region) to the total volume of trade in Japan]
Source: Ministry of Finance “Trade Statistics of Japan”
1990 2011 (Jan. – Mar.)
The share of the U.S. and EU to the total volume of trade has declined and that of Asian countries has increased substantially Japanese companies have shifted their focus of overseas business expansion to Asia
*Including Hong Kong and Macau
* *
By utilizing overseas financial institutions which the Group has a stake in and overseas investment funds, we will respond to local financing needs
Example (4):
85
Image：
*Based on the premise that each bank investigates in accordance with laws and regulations in respective country
Japan Cambodia Vietnam Russia
Financing
Financing (equity/loan)
Aims at further profit Aims at further profit
countries, such as countries, such as loan businesses loan businesses
Financing (equity/loan)
Financing
Financing
Financing
Example (5):
86
SBI Phnom Penh Securities Co., Ltd.
(A wholly subsidiary of SBI Holdings, Inc.)
The only Japanese company which acquired a securities business license in Cambodia.
Appointed to lead underwriter of state-owned Sihanoukville Autonomous Port (“PAS”)’s IPO
For the cases above： Based on the premise that all licenses are approved properly
Offers investors in Japan with IPOs of state-
accounts (as of the end of May)
Brokerage
FPT Securities Joint Stock Company
Vietnam Indonesia
BNI Securities
(Shareholding: 20%)
(Scheduled to invest 25%, obtained approval from the authority on Jun. 28)
<e.g.>
[SBI SECURITIES]
Example (6):
Aiming to sell IPOs of state-owned enterprises to Japanese customers through
87
Korean Government Korean Government’ ’s policy is to invest in private equity s policy is to invest in private equity funds through governmental organizations in order to funds through governmental organizations in order to foster the new industries foster the new industries
The Korea Finance Corporation “Japan-Korea Parts Material Fund” Korean National Pension “Pan-Asian Fund”
SBI SBI Investment Korea Co., Ltd. Investment Korea Co., Ltd.
Selected to be the commissioned management companies
SBI SBI PRIVATE EQUITY Co., Ltd. PRIVATE EQUITY Co., Ltd.
Total：Entrusted with 100 bil. Korean won (approx. 7.4 bil. yen) Total：Entrusted with 283,5 bil. Korean won (approx. 21 bil. yen)
(Together with 3 companies of the Group)
(*Converted at 100 Korean won = 7.41 yen)
won are invested by the Korean National Pension
SBI SBI PRIVATE EQUITY Co., Ltd. PRIVATE EQUITY Co., Ltd.
Example (7):
88
89
Build a human recourses structure to actively recruit people locally in countries where overseas businesses held Reduce foreign currency risk exposure and diversify fund procurement methods by utilizing Hong Kong capital market, such as issuance of yuan-denominated bonds
Consider appointing heads of JV partners as directors of HK local subsidiary to participate in the management of SBI’s
Increased directors by 4 in charge of overseas business at Tokyo Head Office as well Encourage collaboration among overseas partners Making the Second Head Office in Hong Kong the starting point for creating global synergy
(Image)
90
Structural Enhancements for Overseas Businesses, an Important Component for a Transition into a Global Company (2)
Europe Business Management Company Established in London
Consolidate and manage European assets Operate and manage European regional funds, including Russia fund, Hungary fund, and others Invest in financial institutions, and develop Internet-based financial services in the European region Information gathering function in Europe
(Established on April 27, 2011) SBIH UK Limited
Enables SBI to conduct sales activities and swiftly respond to investment
representative office. Financial subsidies for taxes and so forth, as well as referrals to alliance partners, etc.
思佰益（中国）投資有限公司 (SBI China Co., Ltd)
Pursue further expansion and enhanced efficiency of asset Pursue further expansion and enhanced efficiency of asset management and financial service businesses in China management and financial service businesses in China
91
<Malaysia> (Founded in June 2011) Kuala Lumpur Rep. Office <Russia> Moscow Rep. Office <Vietnam> Hanoi Rep. Office Base in Hungary <Singapore> SBI VEN CAPITAL <The U.K.> SBIH UK <Indonesia> Jakarta Rep. Office (Plan) Base in Brunei <Korea> ・SBI Investment Korea ・SBI Global Investment <China> Beijing Rep. Office <China> Shanghai Rep. Office <China> SBI China Co., Ltd 思佰益(中国)投資有限公司 <Hong Kong> SBI Hong Kong <Japan> SBI Holdings Overseas Business Dept.
Taking measures to secure overseas human resources. Such measures include starting to accept students of FPT University in Vietnam as interns from July.
92
93
94
Change in Major Global Stock Market Indexes after Lehman Shock
Sept.
Jun. 2008 2009 2010 2011
Source：Bloomberg
(Sept. 16, 2008 - Jun. 28, 2011)
40% 60% 80% 100% 120% 140% 160% 180% 200%
Nikkei Avg (Japan) Dow Jones (U.S.) DAX (Germany) Shanghai composite (China) RTS (Russia) SENSEX (India) VN (Vietnam) Hang Seng (Hong Kong)
Shanghai +39.0% SENSEX +32.3% VN
DAX +19.2% Nikkei Avg
Dow Jones +8.9% Hang Seng +20.5% RTS +63.8%
Major global stock market indexes recovered to the level of numbers before Lehman Shock occurred, leaving Nikkei with its weak recovery
The Lehman shock
The Greece shock
% change (from Sept. 16, 2008 to Jun. 28, 2011)
95
*1 Figures of FY2005 is based on the sum of E*TRADE SECURITIES and former SBI Securities, with the exception of average commission rate, that is based on E*TRADE SECURITIES only. *2 Source: Disclosed data from TSE and OSE
Period with highest income (FY2005)
FY2010 Change
Individual brokerage trading value
JASDAQ (tril. yen)
335.8 128.5
Number of accounts at SBI SECURITIES
1.23 mil. 2.21 mil.
+0.98 mil.
33.8 3.7 16.3 27.7 9.9
SBI’s share in trading value (%)
23.1 +10.7 pts.
4.7
Brokerage commissions
48.6
Other revenues
22.4 +23.7%
Operating income
36.9
(Unit: bil. yen)
*1 *2
Although brokerage commissions decreased because of a decline in individual trading value and average commission rate, the share of trading value increased, and other revenues grew due to profit diversification
[e.g. SBI SECURITIES]
96
Profits expected to increase substantially when the market recovers
Assumptions: Items below won’t change from FY2010 The share in individual brokerage trading value (33.8%) The average commission rate (3.7 basis points) Revenues from investment trusts, bonds and FX trading businesses
Level of the highest income period (FY2005) Level of pre- Lehman Shock (FY2007)
Operating revenues
SBI SECURITIES
*2 Figures in parentheses are changes from FY2010 consolidated results.
*2
(+68.2%) (+269.9%) (+39.9%) (+159.1%)
*1 These are just simulations based on simple assumptions, and are not forecasts of future results.
If individual trading value recovered to:
Individual brokerage trading value of the 3 exchanges (1st, 2nd sections) and JASDAQ
Operating income
*2
*1
97
101,041 95,179 59,532 64,436
39,094 32,546 17,647 32,172 23,950 15,046 4,002 3,204 15,420 11,543
20,000 40,000 60,000 80,000 100,000 120,000 FY2007 FY2008 FY2009 FY2010
The SBI Group JAFCO JAIC Daiwa SMBC Capital
FY2007 FY2008 FY2009 FY2010 SBI Group 208 168 219 138 118 143 JAFCO 106 101 110 JAIC 132 68 66 Daiwa SMBC Capital 185 63
Comparison of investment amount Comparison of number of invested companies
Source: Compiled by SBIH from information disclosed by each company * Daiwa SMBC Capital delisted in Sept. 2009 and the FY2009 performance isn’t disclosed. * Includes buyout and mezzanine
SBI regard the downturn in world economy as a chance to invest at a low price
(mil. yen)
98
Newspaper article
Invested amount
SBI Holdings
42.0 20.6 3.7 3.5 2.5
JAFCO Mitsubishi UFJ Capital Mizuho Capital JAIC
(bil. yen)
SBI Invested the most amongst 20 major VC firms in Japan
* Exclude Buyout & Mezzanine
Invested amount
SBI Holdings
27.2 12.4 3.7 3.0 2.9
JAFCO Mizuho Capital
YASUDA ENTERPRISE DEVELOPMENT
Daiwa SMBC Capital
<FY2010> <Referrence: FY2009>
June 22, 2010 “The Nikkei” newspaper morning edition June 28, 2011 “The Nikkei” newspaper morning edition
99
8,418 9,290 10,419 11,722 12,001 8,000 9,000 10,000 11,000 12,000
Mar.2008 Mar.2009 Mar.2010 Mar.2011 May 2011
SBI SECURITIES
(Accounts)
2,242 4,029 1,023 137 682 73 107 1,114 278 1,100 720
SBI Credit
(No. of customers)
94 403 12,001
Other financial websites (No. of customers)
MoneyLook
(Total no. of customer registrations)
Lifestyle-related websites
(Total no. of customer registrations)
Others Autoc one
(Total no. of service users in 2010)
Total SBIH InsWeb
(No. of customers)
E-LOAN
(No. of customers)
SBI Insurance
(Total no. of contracts )
Morningstar Japan
(New portfolio customer registrations)
SBI Card SBI Sumishin Net Bank
(Valid cards issued) (Accounts)
* Repetition customers between group companies are counted double while it is omitting repetition in each service site when it can be recognized as a unique user. * The number of total number of contract of SBI Insurance excludes continuing contracts, expiring contracts, and early-withdrawal
(Unit: thousand)
Breakdown of the customer base (as of the end of May 2011)
(thousand)
At the end of May 2011,
topped 12 million!
100
2.3 4.9 14.6 22.8 28.8 38.7 54.4 33.6
4.8 4.5 19.9 22.0 42.2 49.0 33.1 24.6 Before TVCM After TVCM
(n=1,500) (n=4,000)
Survey method: online surveys. Survey period: Sept. 2008 (from Sept. 9 to 11, 2008), Feb. 2011 (from Feb. 25 to 28, 2011), Before TV CMs were done (from May 13 to 20, 2011), After that (from Jun. 10 to 19, 2011)
(*)Survey conducted in: Hokkaido, Toyama, Aichi, Osaka, Okayama, Fukuoka, Kagoshima, Okinawa
(Unit: %)
Know in detail Know roughly Have heard of the name Never heard of
(*)
Visibility comparison between before and after TV CMs in the areas where CMs were broadcasted in this 1Q (Osaka, Nagoya, Hokkaido, Fukuoka, etc.) Visibility comparison between before TV CMs started (Sept. 2008) and previous FY-end (Feb. 2011) (nationwide)
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102
Company name
SBI ALApromo Co., Ltd.
Principal business
Development and sales of cosmetics, health food and drugs that use “5-ALA”(5-Aminolevulinic acid hydrochloride)
Date of establishment
April 24, 2008
Paid-in capital
329,285 mil. yen
Shareholders
The SBI Group 80.5% COSMO OIL Co., Ltd. 14.4% Others 5.1%
Directors
Representative Director and CEO Yoshitaka Kitao (Representative Director and CEO of SBI Holdings, Inc.) Representative Director and COO Satoshi Kawata Director and CTO Tohru Tanaka Director Isao Kusakabe (Director, Senior Executive Officer of COSMO OIL Co., Ltd.) Director Ken-ichi Arai (President of SBI Biotech) Director Hiromi Osada (President of Strategic Consulting Group, Inc. ) Director Takashi Nakagawa (Representative Director and COO of SBI Investment Co., LTD) Executive Officer CSO Motoo Nakajima
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Establish
2008 2008 200 2009 9 20 2010 10
Present ( Present (Jun
. 2011)
: Beauty goods : Medicine : Health foods
B M H
Enhancement of selling system of beauty goods and health foods during this fiscal year
Hanamitsu beauty cream
B
Hataraku-te
B
JV with Medac in German
M
AL SCIENCE series1 emollient cream (Skin-care)
B
AL SCIENCE series2 lotion moisture (Skin-care)
B
diagnostics agent started clinical test phase III
M
Lala Solomon series
(Skin-care)
B
NatuALA-Bio (supplement)
H
NatuALA Black Garlic
(supplement)
H Enhancement of selling system
(e.g.) Alliance with sales
agency or SBI Investment's Investee companies
B
H
NatuALA-BCAA
(supplement)
H SBI ALApromo:
104
Beauty goods: Development of cosmetics and skin care products that use “5-ALA” Health foods: Development of health foods that use “5-ALA” Medicine ： Application of “5-ALA” to diagnosis and remedy of cancer
Promoting research and development of products using “5-ALA” with focusing on the function of “5-ALA”(5- Aminolevulinic acid hydrochloride) in a living organism Conducting pioneering research as “a global research base for 5-ALA, a substance that is the source of life” with a goal to “contribute to health and medical studies from an integration of university and researches by corporation”
Research achievements in the incubation laboratory are merchandised one after another
NatuALA-Bio
(Examples)
(To be released this summer )
ALAPlus
(Released in Feb. 2010)
NatuALA- Black Garlic NatuALA- BCAA
(Released in Nov. 2010) (Released in Mar. 2011)
Supplements: Beauty products:
SBI ALApromo:
105
SBI ALApromo:
106
Guests: Masashi Saito, New York State Physician Yasuhiro Kido, Prof. of Environmental Science, Kyoto Pref. University Theme: “Health Disorders Emerging in Areas Affected by the Earthquake”
Research shows 5-
ALA (5-
Aminolevulinic Acid) metabolizes fat and may help to gradually raise body temperature fat and may help to gradually raise body temperature
ALA, found naturally in humans, can supplement diets
ALA ingestion enhances metabolism and may help raise body temperature by 1℃
SBI ALApromo:
107
SBI ALApromo:
Joint research project with the Tokyo Institute of Technology
(excerpt from Nikkan Kogyo Shimbun on Feb. 16, 2011)
Image：
(a porphyrin building block)
Porphyrin accumulates in cancerous tissue
Newspaper article
108
Research Achievements Announced at the 65th Annual Meeting
(Professor Yasuhiro Kido, Kyoto Prefectural University)
Joint research by SBI ALApromo Co., Ltd., Kyoto Prefectural University, COSMO OIL Co., Ltd. and Biomaterial in Tokyo Co., Ltd. Administration
Improved metabolism, Improved metabolism, including increased oxygen consumption and rise in body temperature Suppression of accumulation of Suppression of accumulation of body fat* body fat* * Cause of metabolic syndrome
Through the administration of ALA, the body temperature rises, leading eading to an expected improvement in the body's immune system. to an expected improvement in the body's immune system.
By suppressing the accumulation of body fat, it is hoped that it is hoped that ALA can ALA can make a broad contribution to health beyond merely assisting with make a broad contribution to health beyond merely assisting with diets. diets.
(May 13-15, 2011)
(Based on the oral study in rats)
SBI ALApromo:
109
Newspaper article
SBI ALApromo: Oral diagnostic agent for the photodynamic diagnosis (PDD) of tumor tissue in the surgical removal of malignant glioma, EMEA approved through German JV partner medac GmbH and sold in 10 European countries, including Germany and the U.K.
Jun. 2010 Started phase-3 clinical testing in JV with Nobelpharma Nov.
Orphan drug designation by Ministry of Health, Labour and Welfare
Mar. 2011 Research published in International Immunopharmacology
Joint research with Kochi University into expanded indication for carcinoma
(excerpt from Nikkan Kogyo Shimbun on Jun. 7, 2011)
110
Newspaper article
1.5 times active in the mice experiment The mice experiment succeeded to prove ‘Cytochrome c oxidase’ (COX ), a enzyme that becomes weak with aging, is activated by taking 5-ALA. Administration of 5-ALA made COX functions 1.5 times effective than normal. This finding will attract attentions as a achievement that will lead to anti- aging studies.
SBI ALApromo:
(excerpt from Nikkan Kogyo Shimbun on Jun. 28, 2011)
111
(excerpt from Nikkan Kogyo Shimbun on May 17, 2011)
Chairman: Ichiro Okura, Chairman of former Porphyrin Associaton (Vice President of Tokyo Institute of Technology) Members: 300 mainly consisting of medical and chemical researchers Annual meeting was held on May 7, 2011 Held special lecture on ALA and general lecture
<Future activity plan>
journal “ALA Porphyrin Science”
“5-aminolaevulinic acid (ALA), which expects the wide range of applications such as cancer diagnosis and growth promotion of animals and plants, etc. Researchers of ALA and Porphyrin had independently established associations and worked separately, but it became very apparent that a collaborative association should be established, owing to the similarities of the two fields. SBI ALApromo:
Newspaper article
112
To send out various reports on ALA in conjunction with academic presentations in the future
ALA ALA ALA ALA
SBI ALApromo:
113
Acquired an exclusive license for using the necessary data and such like for the development of intraoperative diagnostic agent for malignant glioma (gliolan) in Japan.
Pipeline with universities and research institutes in each country.
German Japan
Seeking alliances to expand ALA businesses
China ALApharma
(Pharmaceutical R&D in Europe, etc)
50% 50% (pharmaceutical company)
Photonamic
(Developing ALA acid in the field of fluorescence diagnosis, etc)
subsidiary
SBI ALApromo:
114
115
Projects specialized in cancer and immunity are progressing in each country
Drug discovery
Immune moderation medicine (nucleic
(nucleic acid medicine) acid medicine) : In conjunction with Changchun
Huapu Biotechnology in China, clinical phase I test is in progress in the U.S. Also, in preparation of clinical test due to the requisition for the adhibition to acute leukemia in childhood by a North American research
pharmaceutical companies.
SBI Biotech:
<Business tie-ups with foreign bio ventures and research institutions>
(June 29, 2011 “The Nikkei Business Daily”)
Immunocell therapy therapy: : Under testing clinical
phase II in the U.S. in an alliance with Baylor Research Institute (U.S.) In Japan, SBI Biotech applied to the ethics committee of Kyoto University for an approval of clinical research, and obtained it. Clinical research will start from July. Also, plans are in place to start clinical tests, aimed at an approval from Ministry of Health, Labour and Welfare. .
Newspaper article
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117
5,000 10,000 15,000 20,000 25,000 2009/03/03 7,460 yen 2009/08/14 23,050 yen 2011/6/28 6,840 yen The Great East Japan Earthquake (Mar. 11, 2011) Announced listing on HKEx (Mar. 23, 2011)
(Listed on Apr. 14)
Announced public offering (Jun. 7, 2010) 2008/09/16 16,590 yen Up 209.0%
(Sept. 16, 2008 – Jun. 28, 2011)
Sept.
2008 2009 2010 2011
Source: Nikkei Quick
(yen)
118
3,579.29 650.49
FY2002 FY2003 FY2004
The SBI Group's consideration of appropriate timing for the public offering: An environment where EPS (earnings per share) can be expected to increase, even
upon an increase in the number of shares 236.1 140.3
FY2008 FY2009 FY2010
Net income per share after public offering
(upon split of shares)
(1) (2)
Capital raised* 51.2 bil. yen Dilution ratio 20.31%
(1) PO in Mar. 2005
*total net proceeds of public offering and third party allocation
Capital raised* 35.3 bil. yen Dilution ratio 18.54%
(2) PO in Jun. 2010
*total net proceeds of public offering
Capital raised* Approx. 16.2 bil. yen Dilution ratio 10.02%
(3) IPO on HKEx in Apr. 2011
(passed resolution on Mar. 25, 2011)
*total net proceeds when both public offering and third party allocation are conducted.
Even with calculation based on:
+ share increase from (3)
206.79 yen
(yen)
(6 months) *Dilution ratio = number of newly issued shares / total number of shares before PO
119
20% 40% 60% 80% 100% 120% 140% SBIH TOPIX BANKS INDEX TOPIX SEC&CMDTY FUTR IDX TOPIX OTHER FINC BUS IDX
SBIH
SEC&CMDTY FUTR INDEX
OTHER FINC BUS INDEX
BANKS INDEX
(Sept. 16, 2008 – Jun. 28, 2011)
The number as of Sept. 16, 2008 =100%
Rates of highs and lows referred to Sept. 16, 2008 as of Jun. 28, 2011
Sept.
2008 2009 2010 2011Source: Bloomberg
120
10% 30% 50% 70% 90% 110% 130% 150% 170%
SBIH Nomura HD Daiwa Gr. Mizuho Sec. Matsui sec. kabu.com Monex Gr.
Mizuho Sec.*
SBIH
Nomura HD
Daiwa Gr.
Monex Gr.
kabu.com
Matsui Sec.
Stock price as of Sept. 16, 2008 =100%
(Sept. 16, 2008 – Jun. 28, 2011)
*Mizuho Securities merged with Shinko Securities on May 7, 2009
Source: Nikkei Quick
% change (from Sept. 16, 2008 to Jun. 28, 2011)
Sept.
2008 2009 2010 2011
121
2.0 0.5 0.9 0.5 0.4 1.1 0.0 0.5 1.0 1.5 2.0 2.5
2008/Mar 2007/Mar 2009/Mar 2010/Mar 2011/Mar
(As of the end of May 2011)
Source: TSE
(Consolidated basis, Mothers is excluded)
TSE 1st and 2nd Sections: 0.8 Banking: 0.5 Securities and Futures Brokerage: 0.5 Other Finance: 0.6
2011/May
(*) PBR=FY-end TSE closing price/Book-value per share Note that PER numbers at the end of May 2011 and the current are based on book-value per share at the end of March 2011.
(As of Jun. 28: )
(times)
122
13,000 14,000 15,000 16,000 17,000
2011/06/1, 6/2 16,370 yen (+19.8%) 2011/06/24 14,520 yen (+6.3%)
13,660
2011/05/24 (Closing price of a day before the acquisition ) 2011/05/25 11:40 am Announced stock buybacks up to 200 thousand of shares (6.25% of shares issued and outstanding) and 4,000 mil. yen Closing price 16,270 yen (+19.1%)
Highs & Lows based
SBI
Monex Gr. -10.8%
2011/06/16 Closed the acquisition 2011/05/26 Opened to acquisition
Change in Stock Price of Monex Group After the Announcement of Stock Buybacks
(Period; May. 24, 2011 – Jun. 24, 2011. Figures in parentheses are % change from closing price on May 24)
(yen)
Source: Nikkei Quick
123
The end of FY2010 Aftermath of stock buybacks*1 Ups and Downs
Shareholders’ equity
70,823 67,725
2.94 18.7 362,632 31,851
ROE*2
2.81 +0.1p
Equity capital ratio
19.4
Total assets
365,730
Cash and cash equivalent
34,949
◆Stock buyouts increase ROE while financial base can be feeble
In the case of Monex Gr. which went thorough the announcement on May 25, 2011
Financial base such as Total assets and Cash, Equity capital ratio will shrink Undesirable
long-term financial state
(Units: mil. yen, %)
Financial indicators of Monex Gr. (consolidated)
*2 ROE is based on Shareholders’ equity at the end of the FY2010 *1 Numbers aftermath of stock buybacks are calculated by subtracting the total cost of acquisition from the numbers on the FY2010 financial result summery
：May 25, 2011 after morning session (11:40 am) ：May 26, 2011 – June 16, 2011 ：200 thousand shares (6.25% of shares issued and outstanding) ：3,098 mil. yen
124
(as of the end of March, 2011) (as of the end of March, 2011)
0% 20% 40% 60% 80% 100%
1-9 shares 10-99shares 100-999shares
1.6% 12.6% 13.3% 72.5% 6.6% 44.1% 48.9% 0.4%
* “Over 1,000 shares” includes 14,621 treasury stocks
125
191,631 194,666 208,856 60,080 156,403 152,703 135,676 97,181 50,000 100,000 150,000 200,000
0% 20% 40% 60% 80% 100%
16.6%
2005 2006
45.2%
2007 2008
1.2% 36.2% 0.8%
2009
24.2% (Mar. 2008)→ 44.2% (Mar. 2009)→ 45.2% (Mar. 2010)→ 45.5% (Mar. 2011)
Foreign investors' shareholding ratio rapidly increased after FY2008
Number of Shareholders Number of Shareholders Shareholder Composition Shareholder Composition
2005 2006 2007 2008 2009 2010 2004 * End of March
Foreign institutions and individuals Domestic financial Institutions Other domestic companies Individuals Others
Domestic financial Institutions 17.4% Foreign institutions and individuals 45.5% Other domestic Companies 1.0% Individuals 32.7% Others* 3.4% * End of March
(Number
2011
2010 2011 *Others includes treasury stock (0.07%)
126
127