IR Presentation Financial Summary & Business Strategy August 2018 - - PowerPoint PPT Presentation
IR Presentation Financial Summary & Business Strategy August 2018 Contents Overview of Tokai Tokyo Financial Holdings 2 Business Characteristics 6 Financial Overview 8 Business Focus 14 Capital Policy 20 Business Theme 25 * Unless
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* Unless otherwise specified, the numerical data we quote here were all compiled as consolidated figures of the Tokai Tokyo Financial Holdings, Inc.
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Company Name: Tokai Tokyo Financial Holdings, Inc. (TSE, NSE:8616) Representative: Tateaki Ishida, President & CEO Consolidated Net Assets: 174.8 billion yen Client Assets under Custody
4,659.1 billion yen (Retail Client Assets: 2,653.0 billion yen) Market Capitalization: 198.8 billion yen Number of Employees: Holding Company 183 Consolidated Basis: 3,397
Group company of the Tokai Bank(b) Group company of the Nikko Securities (a)
Tokai Tokyo Securities
Tokai Tokyo Financial Holdings was established
YM
Hamagin TT May ‘10 Nishi- Nippon City TT
Senshu Ikeda TT
Relocated HQ of TTSC to Nagoya City
TTSC merged with Toyota Financial Services Sec. Tokyo Securities Tokai Maruman Securities
Hokuhoku TT
Current group configuration was formed in October 2000 through merger between Tokyo Securities and Tokai Maruman Securities * Currently, (a) SMBC Nikko Securities, (b) Bank of Tokyo-Mitsubishi UFJ
Tochigi Bank invested in Utsunomiya Securities
Acquired ETERNAL
Acquired Takagi Sec.
Acquired Pinnacle
（As of March 31, 2018）
Basic Agreement with Juroku Bank regarding Comprehensive Business Alliance
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Tokai 41 outlets (32 in Aichi Pref.)
Kyushu 1 outlets Chugoku/ Shikoku 4 outlets Kinki 3 outlets Koushin’etsu 2 outlets Tohoku 1 outlets
Kanto 12 outlets (8 in Tokyo) Utsunomiya Securities (6 operating outlets) (7 operating outlets) YM Securities Nishi-Nippon City TT (19 operating outlets) (22 operating outlets) Hamagin TT (17 operating outlets) Senshu Ikeda TT
(As of May 11, 2018)
(5 operating outlets) Hokuhoku TT
ETERNAL (Insurance Terrace 70 outlets)
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Headquarters Overseas Subsidiary Business Partnership
Mirae Asset Daewoo Securities Guotai Junan Securities First Metro Investment Corporation Stifel Financial Corp. Kenanga Investment Bank
Overseas Affiliate
Phillip Tokai Tokyo Investment Management Phillip Securities Tokai Tokyo Financial Holdings Tokai Tokyo Securities (Asia) Tokai Tokyo Securities Europe Tokai Tokyo Securities (USA) Bao Viet Securities Bank of East Asia
Business Partnership with Capital Injection
Tokai Tokyo Global Investments Tokai Tokyo Investment Management Singapore
(As of July 26, 2018)
Bualuang Securities
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Governance: Outside directors / Audit & Supervisory Committee / 3 defense lines
Tokai area: No.1 shipment of manufactured goods / Linear bullet train Hydrogen fuel cell vehicle / Mitsubishi Regional Jet (MRJ)
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TTSC 75% Takagi Securities 6% ETERNAL 2% FH + other Subsidiaries 4% JV6 companies +Ace 13% TTSC 85% FH +
Subsidiaries 3% Equity Method Profits (JV 6 companies +Ace 11% Dividend Income 3%
* 1 The charts present images of the source of Group revenue and income in FYE Mar 2018, which, being different from our consolidated PL, include affiliates’ figures on pro-rata basis.
* 2 Takagi Securities is not included in this chart because of its ordinary loss.
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2,500 5,000 7,500 10,000 12,500 15,000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Operating revenue Ordinary income Net Income Operating Revenue, Ordinary Income (Million Yen) Net Income (Million Yen) 12,000 16,000 20,000 24,000 28,000 Recorded positive ordinary income for 31 consecutive quarters ¥11.16 billion gain of negative goodwill by acquiring Takagi Securities
(Nikkei 225)
(Yen)
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90,547 82,700 67,584 65,412 85,261 33,405 28,524 15,297 13,269 20,939 23,243 18,499 12,423 11,990 25,397
5,000 10,000 15,000 20,000 25,000 30,000 20,000 40,000 60,000 80,000 100,000 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 Operating Revenue Ordinary Income Net Income Operating Revenue, Ordinary Income (Million Yen) Net Income (Million Yen) ¥11.16 billion gain of negative goodwill by acquiring Takagi Securities
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: Bank-affiliated companies *1 US GAAP based Note: Excluding online brokers Tokai Tokyo Financial Holdings prepared the table compiling from publicly disclosed data
Company Name Amount (Million Yen) YoY 1 Nomura *1 328,158 1.7% 2 Daiwa 155,676 14.8% 3 SMBC Nikko 94,982 18.6% 4 Mitsubishi UFJ Morgan 84,206 - 15.5% 5 Mizuho 43,260 - 42.9% 6 Tokai Tokyo 20,939 57.8% 7 Okasan 12,771 - 17.2% 8 Ichiyoshi 7,229 134.9% 9 IwaiCosmo 5,465 184.5% 10 Kyokuto 3,567 - 24.7%
Company Name Amount (Million Yen) YoY 1 Nomura *1 1,972,158 15.0% 2 Daiwa 712,601 15.6% 3 SMBC Nikko 397,405 10.0% 4 Mizuho 381,474
5 Mitsubishi UFJ Morgan 376,901
6 Tokai Tokyo 85,261 30.3% 7 Okasan 81,921 1.6% 8 Ichiyoshi 26,502 27.9% 9 IwaiCosmo 21,089 30.6% 10 Marusan 18,985 20.9%
Retail 57% Corporate & Institutional Sales 5% Market & Products 32% Corporate Finance 2% Other 4%
Retail 31% Market & Products 56% Other 13%
* Corporate & Institutional Sales and Corporate Finance are not included in this chart because of its ordinary loss of -1% and -2% respectively. 13
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Over 80 19% 70s 31% 60s 29% 50s 13% 40s 4% Under 40 2% Corporate 2%
High Wealth 19% Wealth 33% Middle 40% General 6% Non‐Face‐ to‐Face 2% Tokai (Central Japan) 67% Tokyo (Eastern Japan) 19% Osaka (Western Japan) 12% Non‐Face‐ to‐Face 2%
Japan Equities 28% Foreign Equities 30% Bonds 13% Mutual Funds 22% Other 7%
Revenue share image (FYE Mar. 2018)
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10,000 20,000 30,000 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 Fund Revenue Position Revenue Customer Revenue Flow （Million Yen）
10,000 20,000 30,000 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 （Million Yen）
10,000 20,000 30,000 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 Other Foreign Bonds and Derivatives Foreign Equities Bond Trading Equity Trading
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‐554 389 526 636 1,410 2,570 2,568 1,431 1,073 2,317 386 465 1,041 1,325 1,636 2,434 3,031 3,996 3,464 3,783 5,603 1,373 12 39 45 22 17 23 32 37 38 82
10 20 30 40 50 60 70 80 90
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FYE Mar 2009 FYE Mar 2010 FYE Mar 2011 FYE Mar 2012 FYE Mar 2013 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 (%) (Million Yen)
Income and Other Benefits Realized from Transactions with JVs Gain on Investments in Partnership Proportion to Consolidated Ordinary Income
5 245 371 540 642 780 884 1,047998 1,244 1,450 1,469
200 400 600 800 1,000 1,200 1,400 1,600 (Billion Y en)
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Bank Name Bank Deposits
(Trillion Yen)
JV Name Operation started
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Concordia Financial Group* 15.4 Hamagin Tokai Tokyo Sec Nov-2008
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★ Mebuki Financial Group
13.9
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★ Fukuoka Financial Group
13.7
4
★ Chiba Bank
12.0
5
Hokuhoku Financial Group* 11.0 Hokuhoku Tokai Tokyo Sec Jan-2017
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★ Shizuoka Bank
9.5
7
Yamaguchi Financial Group* 8.7 YM Securities Sec Oct-2007
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★ Kyushu Financial Group
8.3
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Nishi-Nippon Financial Holding 7.8 Nishi-Nippon City Tokai Tokyo Sec May-2010
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★ The 77 Bank
7.4
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★ Hiroshima Bank
7.1
12
★ Kyoto Bank
6.8
13
★ Gunma Bank
6.6
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★ The Hachijuni Bank
6.5
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★ Chugoku Bank
6.4
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The Juroku Bank* 5.4 TBA
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★ The Toho Bank
5.2
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★ Iyo Bank
5.0
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Ogaki Kyoritsu Bank 4.9
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Senshu Ikeda Holdings* 4.9 Senshu Ikeda Tokai Tokyo Sec Sep-2013
2.6 Utsunomiya Sec Apr-2017
(As of March 31, 2018)
Total Bank Deposits
★ : Banks having subsidiary securities companies by their own * : Denotes Tokai Tokyo Financial Holdings’ alliance partners
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105 178 203 246 267 327 679 1,024 1,171 1,290 1,361 1,951
500 1,000 1,500 2,000 2,500 50 100 150 200 250 300 350 400 450 500 Mar 2016 Sep 2016 Mar 2017 Sep 2017 Mar 2018 Jun 2018 (Billion Y en)
Assets under Custory Number of Membership
(Wealth Management Unit & Premier Executive Advisors)
251 263 284 325 374 392 449 85 78 62 78 84 84 46 355 365 367 425 480 532 503
100 200 300 400 500 600 Sep 2015 Mar 2016 Sep 2016 Mar 2017 Sep 2017 Mar 2018 Jun 2018 （Billion Y en)
PEA Overlap Wealth Management Unit Total
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3.7 2.6 3.8 3.7 2.7 3.2 4.5 2.6 4.2 4.5 2.9 3.8 5.2 3.3 4.1
1 2 3 4 5 6 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 (%)
17.7 8.9 17.0 12.6 8.6 12.8 8.1 4.9 9.5 7.8 8.7 8.4 15.5 7.9 8.8 3.7 0.7 5.8
10 20 30 (%)
9.0 87.7 57.6 99.6 69.5 61.7 87.1 46.9 36.5 68.3 45.7 67.3 61.5 97.3 63.1 66.9 24.1 6.2 45.8
50 100 150 (Yen)
54.5
Tokai Tokyo Nomura Daiwa
* EPS and ROE are annualized by multiplying 4 to actual quarterly figures.
EPS ROE Dividend Yield Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Shareholders' Equity (million yen) 140,462 154,633 153,089 155,312 172,629 Treasury Stock 3,835 3,639 6,390 7,572 6,188 Dividend per Share (yen) 32.00 34.00 28.00 26.00 38.00 Dividend Payout Ratio 36.5 % 48.9 % 59.7 % 56.9 % 39.1 % DOE (Dividend On Equity ratio) 6.5 % 6.1 % 4.8 % 4.4 % 6.0 %
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TTFH (Consolidated Basis) (Billion Yen) Mar 2016 Mar 2017 Mar 2018 [Capital in a broad sense] Net Assets+Long-term Bonds & Long-term Loans of TTFH (non-consolidated) Net Assets 155 157 174 Long-term Bonds & Long-term Loans of TTFH (non-consolidated) 2 31 41 (1) 157 188 216 [Uses of Capital] Non-current Assets (Excluding Policy Investments & Net Investments) 28 39 43 Capital Necessary for Operating Securities Business 99 99 107 (2) 127 139 151 (3) Available Capital (1) - (2) 29 49 65 Subtotal Subtotal
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50,000 100,000 150,000 200,000 250,000 300,000 350,000 2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4 2016/4 2017/4 2018/4
Tokai Tokyo
(Million Yen)
20 40 60 80 100 120 140 160 180 2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4 2016/4 2017/4 2018/4
Tokai Tokyo Daiwa Nomura (2007/4/1=100)
1.0 6.0 11.0 16.0 21.0 26.0 31.0 2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4 2016/4 2017/4 2018/4
Daiwa/Tokai Tokyo Nomura/Tokai Tokyo
(X)
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28 Consulting (“Mutual fund concierge”）
FinTech Takagi Sec. / Ace Sec. (IFA) Retailer Insurance agency Research (“Fund Labo”) Internet IFA network Securities 3.0 Mobile carrier TORANOTEC MONEY DESIGN [Smartphone trading] Spare change investment Life plan Future plan Loan FinTech Point (mileage) Payment (settlement) MONEQUE MONEQUE for regional banks Robo‐ advisor “THEO” Small amount investment
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Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co.,
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.