corporate profile & business strategy · 2 ~ mebuki financial group 13.5 3 ~ fukuoka financial...

Corporate Profile & Business Strategy

March 2018

1

Contents

* Unless otherwise specified, the numerical data we quote here were all compiled as consolidated figures of the Tokai Tokyo Financial Holdings, Inc.

Company Overview

Business Results

New Management Plan “New Age’s Flag Bearer 5”

Supplementary Material

2

Corporate Profile

Company Name: Tokai Tokyo Financial Holdings, Inc. (TSE, NSE:8616)

Representative: Tateaki Ishida, President & CEO

Consolidated Net Assets: 172.9 billion yen

Client Assets under Custody

of Tokai Tokyo Securities: 4,870.3 billion yen

(Retail Client Assets: 2,809.1 billion yen)

Market Capitalization: 196.7 billion yen

Number of Employees:

Holding Company 184

Consolidated Basis: 3,427

Group company of the

Tokai Bank(b)

Group company of the

Nikko Securities (a)

Tokai Tokyo

Securities

Tokai Tokyo

Financial Holdings

was established

Apr. ‘09

Oct. ‘07

YM

Nov. ‘08

Hamagin

TT

May ‘10

Nishi-

Nippon

City TT

Oct. ‘12

Senshu

Ikeda TT

Apr. ‘10

Relocated HQ of TTSC

to Nagoya City

Apr. ‘10

TTSC merged with

Toyota Financial

Services Sec. Tokyo

Securities

Tokai

Maruman

Securities

Jan. ‘17

Hokuhoku

TT

Group History 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

Apr. ‘17

Tochigi Bank

invested in

Utsunomiya

Securities

March. ‘17

Acquired

ETERNAL

Apr. ‘17

Acquired

Takagi Sec.

Sep. ‘17

Acquired

Pinnacle

（As of December 31, 2017）

Company Overview

Profile and History

3

Individuals & Others20.7%

Financial Institutions

38.5%

Other Domestic

Institutions10.2%

Foreign Investors21.3%

Securities Houses2.6%

Treasury Stock6.7%

AUC and Shareholder Information

Major ShareholdersNo. of

shares (K)

Ownership

Ratio (%)

- "Schroders Group"(*) 18,200 7.55

1 Japan Trustee Services Bank, Ltd. (Trust Account) 12,875 4.58

2 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 12,016 4.28

3 The Master Trust Bank of Japan, Ltd. (Trust Account) 10,379 3.69

4 Mitsui Sumitomo Insurance Co., Ltd. 9,033 3.21

5 Toyota Financial Services Corporation 8,885 3.16

6 The Bank of Yokohama, Ltd. 7,014 2.50

7 Nippon Life Insurance Company 5,611 2.00

8 J. P. Morgan Chase Bank 385166 4,840 1.72

9 Sumitomo Mitsui Trust Bank, Limited 4,800 1.71

10 Meiji Yasuda Life Insurance Company 4,406 1.57

(As of September 30, 2017)

Distribution of Shareholders

* The data of the shareholder ranking No. 1 through 10 were identical in substance to what we had publicized for disclosure purpose. However, the Change Report Pertaining to the Report of Possession of Large Volume submitted on November 7, 2017 Schroder group show that their 4 companies altogether owned 7.55% of Tokai Tokyo Financial Holdings, Inc. as of October 31, 2017

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Sep-17

JV Securities Total

Takagi Securities

Tokai Tokyo Securities

（Billion Yen）

Asset Under Custody

Company Overview

4

Hokuhoku T

okai T

okyo S

ecuritie

s

Tokai T

okyo S

ecuritie

s (A

sia

)

Tokai T

okyo S

ecuritie

s E

uro

pe

Tokai T

okyo S

ecuritie

s (U

SA

)

Tokai T

okyo

Glo

bal In

vestm

ents

Tokai T

okyo In

vestm

ent M

anagem

ent S

ingapore

Kenanga In

vestm

ent B

ank (M

ala

ysia

)

YM

Securitie

s

Overseas Business Alliance

Group Structure

Consolidated Subsidiaries Equity Method Affiliates

Tokai T

okyo B

usin

ess S

erv

ice

Tokai T

okyo S

erv

ice

Tokai T

okyo W

ealth

Consultin

g

Tokai T

okyo In

vestm

ent

Tokai T

okyo

Asset M

anagem

ent

Takagi S

ecuritie

s

Tokai T

okyo R

esearc

h In

stitu

te

Tokai T

okyo A

cadem

y

Guota

i Junan S

ecuritie

s (C

hin

a)

Phillip

Securitie

s (S

ingapore

)

Firs

t Metro

Investm

ent C

orp

ora

tion (P

hilip

pin

es)

The B

ank o

f East A

sia

(Hong K

ong)

Stife

l Fin

ancia

l Corp

. (US

A)

Bualu

ang S

ecuritie

s (T

haila

nd)

Philip

Tokai T

okyo

Investm

ent M

anagem

ent

Ham

agin

Tokai T

okyo S

ecuritie

s

Nis

hi-N

ippon C

ity Tokai T

okyo S

ecuritie

s

Senshu Ik

eda T

okai T

okyo S

ecuritie

s

All N

ippon A

sset M

anagem

ent

Mira

e A

sset D

aew

oo S

ecuritie

s (K

ore

a)

* In April 2010, Tokai Tokyo Securities Co., Ltd. and Toyota Financial Services Securities Co., Ltd. merged.

Ete

rnal

Uts

unom

iya S

ecuritie

s

Ace S

ecuritie

s

Tokai T

okyo S

ecuritie

s*

Tokai Tokyo Financial Holdings, Inc. a holding company listed on TSE and NSE

as of December 31, 2017

Pin

nacle

Bao V

iet S

ecuritie

s (V

ietn

am

)

Company Overview

Group Structure

5

Alliance

& Platform

Solid Business

Base in

Chubu Area

Advanced

Business Model

Sound

Management

- Wealth Management (Orque d’or)

- Retail (MONEQUE)

- Market

(Foreign Stocks, Structured

Notes)

- Investment Banking (Debt, IPOs) - Outside Directors

- Company with an Audit

& Supervisory Committee

- 3 Defense Lines

- 6 Joint Ventures with Regional

Banks

- Brokers’ Broker Business

Chubu Area

- No.1 in Value of Shipment of

Manufactured Goods

- Linear Bullet Train

- Hydrogen Fuel Cell Vehicle

- Mitsubishi Regional Jet (MRJ)

Company Overview

Characteristics

6

0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

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

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Operating Revenue(LHS)

Ordinary Income(LHS)

Net Income(RHS)

（

Recorded positive ordinary income non stop for 29 consecutive quarters

8,000

12,000

16,000

20,000

24,000

Financial Summary

¥11.16 billion gain of

negative goodwill by

acquiring Takagi Securities

Nikkei 225 (Yen) Financial Results [Quarterly] and Nikkei 225

Operating revenue,

Ordinary income

(Million Yen)

Net income

(Million Yen)

Company Overview

7

FYE

March 2016

FYE

March 2017

FYE

March 2018

Business Results

Major Initiatives and Project Progress Wealth Management

Asset Management Brokerage

Brokerage

Hokuhoku TT Sec

One Stop Channel Insurance

Ace Sec Brokerage

Brokerage

Takagi Sec

M&A Advisory

Utsunomiya Sec

8

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2007

/4

2008

/4

2009

/4

2010

/4

2011

/4

2012

/4

2013

/4

2014

/4

2015

/4

2016

/4

2017

/4

Tokai Tokyo

350,000

1,350,000

2,350,000

3,350,000

4,350,000

5,350,000

野村

大和

1.0

6.0

11.0

16.0

21.0

26.0

31.0200

7/4

200

8/4

200

9/4

201

0/4

201

1/4

201

2/4

201

3/4

201

4/4

201

5/4

201

6/4

201

7/4

対大和倍率

対野村倍率

Comparison Study

Nomura

Daiwa

Tokai Tokyo

Market Cap Multiple

Nomura/Tokai Tokyo

Daiwa/Tokai Tokyo

20

17

/10

(Million Yen)

Business Results

Market Cap Trend in comparison with Nomura and Daiwa

9

【FY2017 9 months Net Income】

CompanyAmounts

(million yen)Y on Y

1 Nomura *1 196,668 10.3%

2 Daiwa 73,998 (9.4%)

3 ◎ SMBC Nikko 49,534 88.3%

4 ◎ Mitsubishi UFJ 31,184 (13.7%)

5 ◎ Mizuho 24,059 (86.4%)

6 Tokai Tokyo 21,904 184.8%

7 Okasan 4,266 (46.6%)

8 Ichiyoshi 3,618 149.3%

9 IwaiCosmo 3,478 146.7%

10 Kyokuto 2,334 ▲40.3%

【FY2017 9 months Operating revenue】

CompanyAmounts

(million yen)Y on Y

1 Nomura *1 1,460,944 13.4%

2 Daiwa 527,140 17.1%

3 ◎ SMBC Nikko 292,800 16.9%

4 ◎ Mitsubishi UFJ 282,080 (1.9%)

5 ◎ Mizuho 279,213 (14.4%)

6 Tokai Tokyo 63,639 37.3%

7 Okasan 61,786 2.5%

8 ◎ SMBC Friend 23,599 (24.4%)

9 Ichiyoshi 19,750 30.8%

10 IwaiCosmo 15,398 31.8%

87.7

57.6

99.6

69.5 61.787.1

46.9

36.5

68.3

45.7

67.361.5

42.729.0

43.0

130.4

61.6 61.5

0

50

100

150

(Yen)

3.7

2.6

3.83.7

2.7 3.2

4.5

2.6

4.24.5

2.9

3.8

2.3

1.4

2.3

4.2

2.9

4.1

0

1

2

3

4

5

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2Q

(%)

Tokai Tokyo Nomura Daiwa

EPS

ROE

Dividend Yield

Financial Summary and Performance in Comparison with Peers

*EPS and ROE is annualized by multiplying 2 to actual semi-annual figures.

17.7

8.9

17.012.6

8.6

12.88.1

4.99.57.8 8.7 8.4

9.7

4.98.6

21.0

7.7 8.1

0

10

20

30

(%)

◎: Bank-affiliated companies

*1 US GAAP based

Note: Excluding online brokers

Tokai Tokyo Financial Holdings prepared the table

compiling from publicly disclosed data

Business Results

10

Overall Picture

“New Age’s Flag Bearer 5”

Further Strengthen Operating Base and Achieve Growth Pursuit Strategic Themes

Productivity Revolution

Growth by M&A

Asset management

Pension and insurance service

Banking service

Overseas market expansion

Expansion to Metropolis


Organization

Defense

Mechanism

Humanity

Professionality

Market &

Investment

Bank

Great Platform

Orque

d’or

MONEQUE Matured

Unique

development of

retail strategy

11

Nomura

Mitsubishi UFJ Morgan

Daiwa

SMBC Nikko

Mizuho

Tokai Tokyo Financial Group

“New Age’s Flag Bearer 5”


5 Giants

12

Aichi14%

Gifu2%

Mie4%

Shizuoka5%

Osaka Area

12%Others46%

Tokyo Area17%

2014

Value of Shipments of

Manufactured GoodsChubu

Area

25%

“Chubu Area” consists of four prefectures, Aichi, Mie, Gifu and Shizuoka.

“Tokyo Area” consists of Tokyo, Kanagawa, Saitama and Chiba.

“Osaka Area” consists of Osaka, Kyoto, Hyogo and Nara.

Ongoing 3 Big Projects in Chubu Area

Hydrogen

fuel cell vehicle

MRJ

Chuo

Shinkansen (※)

（※）operated by Superconducting Maglev System

Aichi has been No.1 Since 1977

Aichi has No.1 share in the 10

(out of 24) industries

・Transportation Equipment

(39%－Toyota, Suzuki, Yamaha Motor, Denso, Aishin, Mitsubishi Heavy

Industry)

・Production Machinery

(11%－YAMAZAKI MAZAK, Okuma)

・Business oriented Machinery

(16%－Brother Industries)


Solid Business Base in Chubu Area

“MONEQUE”

Pursue Unique Segment-Specific Strategy in Retail Operation

“Orque d’or”

Nagoya Tokyo Kansai After-death care service

IFA

Restructuring outlets

Integrated sales activity for

corporate and retail

Asset analysis

Sales activities at affiliates

Matured

Segment

Online brokers “Insurance Terrace”

(by ETERNAL) “Mutual Fund Counter”

(by Takagi Sec.) Sony Bank

FinTech

- MoneyForward

- KALAIS

- Life Plan Simulation

13


14

Top 20 Regional Banks (total deposits) （As of September 30, 2017)

Total Bank Deposits

49 Trillion Yen

★ : Banks that have subsidiary securities companies

※ Denotes Tokai Tokyo Financial Holdings’ alliance partners

Alliance with Regional Banks

Bank Name

Bank

Deposits

(Trillion Yen)

JV Name

Date of

Commencing

Operation

1 Concordia Financial Group 14.8 Hamagin Tokai Tokyo Sec Nov-2008

2 ★ Mebuki Financial Group 13.5

3 ★ Fukuoka Financial Group 13.2

4 ★ Chiba Bank 11.5

5 Hokuhoku Financial Group 10.7 Hokuhoku Tokai Tokyo Sec Jan-2017

6 ★ Shizuoka Bank 9.4

7 Yamaguchi Financial Group 8.6 YM Securities Sec Oct-2007

8 ★ Kyushu Financial Group 7.9

9 Nishi-Nippon Financial Holdings 7.7 Nishi-Nippon City Tokai Tokyo Sec May-2010

10 ★ The 77 Bank 7.2

11 ★ Hiroshima Bank 7.0

12 ★ Kyoto Bank 6.7

13 ★ Gunma Bank 6.4

14 ★ The Hachijuni Bank 6.4

15 ★ Chugoku Bank 6.1

16 The Juroku Bank 5.4

17 ★ The Toho Bank 5.0

18 ★ Iyo Bank 4.9

19 Senshu Ikeda Holdings 4.8 Senshu Ikeda Tokai Tokyo Sec Sep-2013

20 ★ Ogaki Kyoritsu Bank 4.8

- Tochigi Bank 2.6 Utsunomiya Sec Apr-2017


15

0

200

400

600

800

1,000

1,200

1,400

1H 2H 1H 2H 1H 2H 1H

FY2014 FY2015 FY2016 FY2017

Others

InvestmentTrusts

Foreign &StructuredBonds

DomesticBonds

ForeignStocks

DomesticStocks

(Billion Yen)

Income Contribution from JV Affiliates

Assets under Custody by Product

536

245

305

371

450

540538

642668

780841

884

963

1,0471,009

998

1,024

1,244

1,444

0

200

400

600

800

1,000

1,200

1,400

1,600

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Sep

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Sep

-14

Mar

-15

Sep

-15

Mar

-16

Sep

-16

Mar

-17

Sep

-17

(Billion Yen)

Assets under Custody - from JVs (6 Entities)

0

5

10

15

20

25

30

35

40

45

50

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY20171H

Income and Other Benefits Realized from Transactions with JVs

Gain on Investments in Partnership

Proportion to Consolidated Ordinary Income

(%)（Million Yen）


Alliance with Regional Banks

16

Local banks

Hamagin

TT Sec.

Nishi-Nippon

City TT Sec.

Ikeda Senshu

TT Sec.

Securities

companies

Provided functions Strengthen functions New functions

Utsunomiya

Sec.

IFAs

Local financial

firms

YM Sec.

Hokuhoku

TT Sec.

FinTech

（ＩＴ・ＡＩ）

Information

Call

center

Investment

Bank

Security

brokerage Education Asset

management

Overseas Operation

Insurance

High-net-

worth

M&A

“Mutual Fund

Counter” (by

Takagi Sec.)

Consulting

Trust

bank

MONEQUE

Securities

companies

Platform alliances （53 entities as of Sep. 2017）

New Management Plan


17

Tokai Tokyo Securities :

68 operating outlets

Tokai

44 outlets

（35 in Aichi Pref.）

Kyushu

1 outlets

Chugoku/

Shikoku

4 outlets

Kinki

3 outlets

Koushin’etsu

2 outlets

Tohoku

1 outlets

Kanto

13 outlets

（8 in Tokyo）

Utsunomiya Securities

(6 operating outlets)


YM Securities

Nishi-Nippon City TT



Hamagin TT


Senshu Ikeda TT

(As of December 31, 2017)


Hokuhoku TT

Takagi Securities :


JV Securities :


ETERNAL

(Insurance Terrace 72 outlets)


Area Coverage [Brokerage Business]

Nationwide network

18

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 December 31, 2017)

Bualuang Securities


Overseas Network

19

Inquiries to be directed to:

Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co.,

Ltd. (former Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it over. The Group (Tokai Tokyo

Financial Group) at the same time shifted to a holding company system.

Effective the same date, the Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd. changed their

corporate names to Tokai Tokyo Financial Holdings, Inc., and Tokai Tokyo Securities Co., Ltd. respectively.

The result for the fiscal year ended on March 31, 2009 or any earlier date account for the operation of the

former Tokai Tokyo Securities Co., Ltd. under then existing organizational structure.

Corporate Communications Department

TEL: +81-3-3517-8618 FAX: +81-3-3517-8314

E-mail: [email protected]

This material is intended to provide information regarding the Company’s most recent operational result

and NOT to solicit investment in securities issued by the Company.

corporate profile & business strategy · 2 ~ mebuki financial group 13.5 3 ~ fukuoka financial...

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