IR Presentation Financial Summary & Business Strategy...2018/11/09 · Dec 29, 2017 Nov 7, 2018 Tokai Tokyo 1.11 0.94 Nomura 0.80 0.63 Daiwa 0.90 0.79 Okasan 0.88 0.72 Source: Bloomberg

IR Presentation

Financial Summary & Business Strategy

November 2018

1

Contents

Introduction: Overview of Tokai Tokyo Financial Holdings 2

Introduction: Business Characteristics 6

Latest Financial Summary 8

Financial Structure & Business Focus 14

Capital Policy 21

Progress of Strategic Project 24

Progress of “New Age’s Flag Bearer 5” 27

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

Introduction:

Overview of Tokai Tokyo Financial Holdings

3

Corporate Profile Company Name: Tokai Tokyo Financial Holdings, Inc. (TSE, NSE:8616) Representative: Tateaki Ishida, President & CEO Consolidated Net Assets: 171 billion yen Client Assets under Custody of Tokai Tokyo Securities: 4,816 billion yen (Retail Client Assets: 2,676 billion yen) Market Capitalization: 176 billion yen Number of Employees: Holding Company 192 Consolidated Basis: 3,540

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

Mar ‘17

Acquired ETERNAL

Apr ‘17

Acquired Takagi Sec.

Sep ‘17

Acquired Pinnacle

(As of Sep 30, 2018)

Mar ‘18 Basic Agreement with Juroku Bank regarding Comprehensive Business Alliance

Introduction: Overview of Tokai Tokyo Financial Holdings

4

Tokai Tokyo Securities : 66 operating outlets

Tokai 43 outlets

(33 in Aichi Pref.)

Chugoku/ Shikoku 4 outlets

Tohoku 1 outlets

Kanto 12 outlets

(8 in Tokyo)

Tochigin TT

(7 operating outlets)


YM Securities

Nishi-Nippon City TT


(22 operating outlets) Hamagin TT


Senshu Ikeda TT

(As of Oct 1, 2018)


Hokuhoku TT

Takagi Securities : 12 operating outlets JV Securities : 77 operating outlets

ETERNAL

(Insurance Terrace 57 outlets)

Area Coverage [Brokerage Business]

Nationwide Network

Introduction: Overview of Tokai Tokyo Financial Holdings

f.k.a. Utsunomiya Securities

Koushin’etsu 2 outlets

Kinki 3 outlets

Kyushu 1 outlets

5

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)

Bank of East Asia

Business Partnership with Capital Injection

Tokai Tokyo Global Investments

Tokai Tokyo Investment Management Singapore

(As of Oct 1, 2018)

Bualuang Securities

Overseas Network Introduction: Overview of Tokai Tokyo Financial Holdings

Bao Viet Securities

Introduction:

Business Characteristics

7

Alliance & Platform

Strength in Market Div.

- 7 alliances with regional banks for jointly funded securities

- Brokers’ broker business (58 cos.)

Introduction: Business Characteristics

- High-net-worth

- Matured

- Next generation

Sound management Governance: Outside directors / Audit & Supervisory Committee / 3 defense lines

Solid business base in Tokai Area Tokai area: No.1 shipment of manufactured goods / Linear bullet train

Hydrogen fuel cell vehicle / Mitsubishi Regional Jet (MRJ)

Segmented retail business

Corporate sales & investment bank

- Bonds - IPOs

- Foreign equities

- Structured Notes

- Top lead manager of MDBs bonds

Latest Financial Summary

9

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

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

FYEMar 2013

FYEMar 2014

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Million Yen）

Operating revenue, Ordinary income

Operating revenue Ordinary income Net Income

Net income

(Million Yen)

Financial Trend

12,000

16,000

20,000

24,000

Recorded positive ordinary income for 32 consecutive quarters

¥11.16 billion gain of negative goodwill by acquiring Takagi Securities

(Nikkei 225)

(Yen)


10

Financial Performance in Industry Latest Financial Summary

: Bank-affiliated companies

*1 US GAAP based

Note: Excluding online brokers

Tokai Tokyo Financial Holdings prepared the table compiling from publicly disclosed data

Top 10 by financial performance on 1H FYE Mar. 2019 in the industry

Operating Revenue 1H FYE Mar 2019 Ordinary Income 1H FYE Mar 2019 Net Income 1H FYE Mar 2019

Amount Amount Amount

(Million Yen) (Million Yen) (Million Yen)

1 Nomura *1 879,366 -5.5% 1 Daiwa 46,015 -33.3% 1 Daiwa 36,286 -29.3%

2 Daiwa 347,746 3.4% 2 ★ SMBC Nikko 36,245 -13.5% 2 ★ SMBC Nikko 27,925 -3.2%

3 ★ Mizuho 202,418 9.1% 3 ★ MUMSS 28,864 -18.0% 3 ★ Mizuho 21,508 25.5%

4 ★ SMBC Nikko 194,282 6.1% 4 ★ Mizuho 24,206 9.1% 4 ★ MUMSS 15,363 -13.4%

5 ★ MUMSS 185,537 2.2% 5 Nomura *1 14,110 -91.2% 5 Tokai Tokyo 3,060 -82.0%

6 Okasan 36,346 -7.5% 6 Tokai Tokyo 3,985 -51.7% 6 IwaiCosmo 2,283 9.4%

7 Tokai Tokyo 35,842 -10.0% 7 IwaiCosmo 3,199 37.2% 7 Okasan 1,544 13.9%

8 Ichiyoshi 11,582 -6.6% 8 Okasan 3,067 -36.6% 8 Kyokuto 1,322 63.8%

9 IwaiCosmo 10,891 11.0% 9 Ichiyoshi 1,986 -34.6% 9 Ichiyoshi 1,317 -35.3%

10 Marusan 8,261 -5.9% 10 Kyokuto 881 -25.8% 10 Marusan 668 -17.1%

YoYCompany

NameYoY

Company

NameYoY

Company

Name

11

Exchangeable bond

Negative Factors in 1Q and 2Q in FYE March 2019

Emerging market

US equity


Japan equity

Unrest of

capital market

Advance investment - FinTech

- Office relocation

- Orque d’or salon Tokyo

Turnaround delay in acquired companies - Takagi Sec.

- ETERNAL

- Pinnacle

12

Project Review

Commencement PMI FYE March 2019

Takagi Securities

Consolidated since April

2017 to expand securities business base in Osaka area.

Received JPY11.1 B

negative goodwill as extraordinary gain.

Restructured organization

and cut cost to improve P/L.

JPY388M ordinary loss in

1H (6 mos.). More restructuring in 2H to

become profitable in FYE

2020

Eternal Consolidated since Mar.

2017 to expand insurance business

Pursue synergy by

collaborating with MONEQUE

Plan to become profitable

in 2H

Pinnacle Consolidated since Sep.

2017 to strengthen M&A business

Plan to initiate business

succession service for regional banks.

Plan to become profitable

in 2H

Money Design

Acquired 20% stake as of

June 2018

Dispatched 1 board director.

Plan for business alliance to utilize the robo advisor.

JPY89M equity method loss

and 60M goodwill in 2Q (3 mos.). Pursue collaboration

possibility.

Relocation of HQ office

To relocate as of Jan. 2019

to strengthen Market Div. and open “Orque d’or Salon

Tokyo”.

Trading system to be

upgraded and new salon for high-net-worth in Tokyo

JPY100M/month rent

started as of July 2018.


13

70

80

90

100

110

120

130

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Tokai Tokyo

Nomura

Daiwa

Okasan

8590

8179

10-Year Stock Price Trend (Dec 31, 2007 = 100)

Year-to-date Stock Price Trend (Dec 31, 2017 = 100)

Company Name

PBR (x)

Dec 29, 2017 Nov 7, 2018

Tokai Tokyo 1.11 0.94

Nomura 0.80 0.63

Daiwa 0.90 0.79

Okasan 0.88 0.72

Source: Bloomberg

(Reference) PBR among Peers

Stock Price Trend in Comparison Among Peers

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Tokai Tokyo

Nomura

Daiwa


Financial Structure

&

Business Focus

15

TTSC69%

FH +other

Subsidiaries10%

Equity Method Profits (JV 6companies

+Ace16%

DividendIncome

5%

Characteristics of Business and Financial Performance

Group Operating Revenue image including the affiliates’ figures on pro-rata basis*1

* 1 The charts present images of the source of Group revenue and income in 1H FYE Mar 2019, which, being different from our consolidated PL, include affiliates’ figures on pro-rata basis.

Group Ordinary Income image including the affiliates’ figures on pro-rata basis*1, 2

* 2 Takagi Securities and ETERNAL are not included in this chart because of their ordinary losses.

Financial Structure and Business Focus

[Retail Segment]

41%

[Non-retail Segment]

33%

Retail Company

34%

Wealth Management

4%

Next Generation Business

3%Corporate

Finance2%

CorporateSales4%

Market & Products

26%

Other1%

Takagi Securities6%

ETERNAL3%

FH + other Subsidiaries

3%

JV6 companies+Ace14%

TTSC

16

General :Holding less than 5 million yen Middle :5 million to 30 million yen Wealth :30 million to 100 million yen High Wealth :Over 100 million yen in assets under custody

High Wealth17.8%

Wealth32.5%

Middle41.7%

General5.9%

Non-face-to-face2.0%

High Wealth28.0%

Wealth24.3%

Middle32.0%

General6.4%

Non-face-to-

face9.4%

High Wealth6.5%

Wealth25.9%

Middle56.1%

General11.4%

High

Wealth14.4%

Wealth24.3%

Middle46.5%

General

14.8%

Assets under Custody Breakdown by Wealth

Mar 2013 Sep 2018

Revenue Breakdown by Wealth

FYE Mar 2013

1H FYE Mar 2019

Retail and High-net-worth Business (TTSC) Financial Structure and Business Focus

17

0

5,000

10,000

15,000

20,000

25,000

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

FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYEMar2019

（Million Yen) Wealth Management

One Stop Channel

Retail Sales

Revenue Breakdown by Business Segment

Financial Structure and Business Focus Retail and High-net-worth (TTSC)

Assets under Custody Breakdown by Business Segment

0

500

1,000

1,500

2,000

2,500

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


（Billion Yen)One Stop Channel Retail Sales

0

100

200

300

400

500

600

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


（Billion Yen)

Wealth Management

18

7,590 6,536

5,831

8,323 9,265

10,653

8,652

0

2,000

4,000

6,000

8,000

10,000

12,000

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

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

(Mill

ion

Ye

n)

Other Takagi Securities

Broker's Broker Business JV

TTSC

Total

9,607

8,332 8,110

11,424 11,359

13,132

10,615

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar 2019

(Mill

ion

Ye

n)

Fund RevenuePosition RevenueCustomer Revenue Flow

Total

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

（Mill

ion

Yen）

Other

Foreign Bonds, Structured Bonds, Forex

Foreign Equities

Japanese Bonds

Japanese Equities

(Origination, Socondary, Forex)

Trading Revenue by Product

Market Division (TTSC)

Breakdown of Customer Revenue Flow

Revenue Breakdown by Category


19

Corporate Sales / Corporate Finance (TTSC)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

FYEMar

2015

FYEMar

2016

FYEMar

2017

FYEMar

2018

FYEMar

2019

Other Fees & Commissions

Underwriting

Corporate Sales

(Million Yen)

Revenue of Corporate Sales & Corporate Finance Unit

2018 Rank Manager USDm Deals

1 Tokai Tokyo 1,312 148

2 Okasan 984 114

3 MUMSS 5,641 88

4 SBI 578 80

5 Nomura 3,013 45

6 Daiwa 892 37

7 Chugin 263 34

8 Mizuho 1,772 33

9 SMBC Nikko 2,121 29

10 Aozora 253 24

Uridashi Managers by Number of Deals (MDBs: World Bank, IFC, IDB, ADB, etc.)

Sources : Bloomberg, Thomson Reuters, Capital Eye News

2018 Rank Company JPYm Deals

1 Mizuho 2,086,701 347

2 Nomura 1,826,352 353

3 SMBC Nikko 1,642,756 343

4 Daiwa 1,623,921 339

5 MUMSS 1,279,031 253


7 Shinkin 109,900 54

8 Goldman Sachs 75,700 32

9 Okasan 55,600 70

10 SBI 50,000 16

Total Straight Bond Underwriting

IPO Underwriting

2018 Rank Company JPYm Deals

1 Nomura 78,752 15

2 Daiwa 39,131 14

3 MUMSS 30,888 9

4 Mizuho 30,183 34

5 SMBC Nikko 20,931 32

6 SBI 12,035 43


8 Okasan 1,014 18

9 Monex 630 19

10 Ichiyoshi 467 17


20

30,644

27,78926,951

29,350

27,58826,044 26,111

28,117

31,90933,562

31,647

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

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

FYEMar 2014

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Mill

ion

Yen

)

Operational expenses (Variable)

System expenses (Variable)

Trading-related expenses (Variable -JV)

Trading-related expenses (Variable-others)

Personnel expenses (Variable)

Other

Depreciation

Trading-related expenses (Fixed)

Occupancy and rental

Operational expenses (Fixed)

System expenses (Fixed)

Personnel expenses (Fixed)

Fixed cost

Total

Cost Analysis (Consolidated)

Personnel expenses increased due

to consolidation of group companies V

aria

ble

co

st

Fixe

d c

ost


Capital Policy

22

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Sep 2018

Shareholders' Equity (million yen) 140,462 154,633 153,089 155,312 172,629 168,743

Treasury Stock 3,835 3,639 6,390 7,572 6,188 6,187

Dividend per Share (yen) 32.00 34.00 28.00 26.00 38.00 12.00

Dividend Payout Ratio 36.5 % 48.9 % 59.7 % 56.9 % 39.1 % 101.3 %

DOE (Dividend On Equity ratio) 6.5 % 6.1 % 4.8 % 4.4 % 6.0 % 3.6 %

3.72.6

3.83.72.7

3.2

4.5

2.6

4.24.5

2.93.8

5.2

3.34.13.7

1.1

3.5

0123456

FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYEMar 2017 FYE Mar 2018 2Q FYE Mar 2019

(%)

17.7

8.9

17.012.6 8.6 12.88.1

4.99.57.8 8.7 8.4

15.5

7.9 8.83.6

-0.4

5.6

0

10

20

30(%)

87.757.6

99.669.5 61.7

87.1

46.9 36.568.3

45.7 67.3 61.597.3

63.1 66.923.7

-3.5

44.9

(50)

0

50

100

150

(Yen)

Indicator per Share in Comparison with Peers Capital Policy

Tokai Tokyo Nomura Daiwa

* EPS and ROE are annualized

EPS

ROE

Dividend Yield

Dividend Information of TTFH

Indicator per Share in Comparison with Peers

Uses of Capital

156

AvailableCapital

57

Capital in a Broad Sense214

0

23

Capital Policy & Available Capital

Shareholder return

Reserved capital for future growth

- Dividend

- Share buyback

- Benefit program

Investment in IT/AI

M&A / Capital investment

(Bank, broker, FinTech)

Business expansion (Market div., high-net-worth, IFA)

Capital Policy

Capital Policy

Available Capital

(Billion Yen)

Progress of Strategic Project

25

5

245

371

540

642

780

884

1,047998

1,244

1,4501,499

0

200

400

600

800

1,000

1,200

1,400

1,600

(Bill

ion

Yen)

-554 389 526 636

1,410

2,570 2,568

1,431 1,073

2,317

611 465

1,0411,325

1,636

2,434

3,0313,996

3,4643,783

5,603

2,557

0

12

39

45

22

17

23 32 37

38

79

0

10

20

30

40

50

60

70

80

90

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FYEMar2009

FYEMar2010

FYEMar2011

FYEMar2012

FYEMar2013

FYEMar2014

FYEMar2015

FYEMar2016

FYEMar2017

FYEMar2018

1HFYEMar2019

(%)

(Mill

ion

Yen

)

Income and Other Benefits Realized from Transactions with JVs

Gain on Investments in Partnership

Proportion to Consolidated Ordinary Income

Alliance with Regional Banks Progress of Strategic Project

Assets under Custody - from JVs (6 Entities) Income Contribution from JV Affiliates

26

Bank NameBank

Deposits(Trillion Yen)

JV NameOperation

started

1 Concordia Financial Group* 15.4 Hamagin Tokai Tokyo Sec Nov-2008

2 ★ Mebuki Financial Group 13.9

3 ★ Fukuoka Financial Group 13.7

4 ★ Chiba Bank 12.0

5 Hokuhoku Financial Group* 11.0 Hokuhoku Tokai Tokyo Sec Jan-2017

6 ★ Shizuoka Bank 9.5

7 Yamaguchi Financial Group* 8.7 YM Securities Sec Oct-2007

8 ★ Kyushu Financial Group 8.3

9 Nishi-Nippon Financial Holdings* 7.8 Nishi-Nippon City Tokai Tokyo Sec May-2010

10 ★ The 77 Bank 7.4

11 ★ Hiroshima Bank 7.1

12 ★ Kyoto Bank 6.8

13 ★ Gunma Bank 6.6

14 ★ The Hachijuni Bank 6.5

15 ★ Chugoku Bank 6.4

16 The Juroku Bank* 5.4 TBA

17 ★ The Toho Bank 5.2

18 ★ Iyo Bank 5.0

19 Ogaki Kyoritsu Bank 4.9

20 Senshu Ikeda Holdings* 4.9 Senshu Ikeda Tokai Tokyo Sec Sep-2013

- Tochigi Bank* 2.6 Utsunomiya Sec Apr-2017

Top 20 Regional Banks (by Total Deposits) (As of March 31, 2018)

Total Bank Deposits

JPY55.8 Trillion

★ : Banks having subsidiary securities companies by their own

* : Denotes Tokai Tokyo Financial Holdings’ alliance partners

Progress of Strategic Project Alliance with Regional Banks

Progress of Management Plan

“New Age’s Flag Bearer 5”

28

The Overall Picture Progress of Management Plan “New Age’s Flag Bearer 5”

“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

29

105

178203

246267 265

74

679

1,024

1,171

1,290 1,361

2,049(including 623

from Tokyo)

0

500

1,000

1,500

2,000

2,500

3,000

0

50

100

150

200

250

300

350

400

450

500

Mar2016

Sep2016

Mar2017

Sep2017

Mar2018

Sep2018

・・・ Mar2021

(Bil

lio

n Y

en)

Assets under Custory (Tokyo)

Assets under Custory (Nagoya)

Number of Membership

Wealth Management Business

Orque d’or Salon

Nagoya

Entrance, lounge, dining hall, reception room, seminar room, multipurpose hall, Japanese style Tatami room, etc.

Tokyo

(Interior CG Perspective)

In April 2018, services commenced for Orque d’or members in Tokyo.

Orque d’or Salon Tokyo will open in Nihonbashi Takashimaya Mitsui Building in the spring of 2019

Entrance, lounge, restaurant, reception room, seminar room, multipurpose hall, rooftop garden, etc.

Number of Membership & Assets under Custody (Orque d’or members)

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

30

Point Investment Point Settlement

Internet

IFA Network

TT Online Securities

FinTech

Plan for Next Generation Progress of Management Plan “New Age’s Flag Bearer 5”

(Operation/Marketing)

Low-cost Settlement

Platform

Digital Marketing

Point Infrastructure

(mileage)

[MONEY DESIGN] Robo-advisor “THEO”

Life plan

[One Tap BUY] Small amount investment

[TORANOTEC] Spare change investment

•SNS • Investment Trust

Outlets (“Fund Labo”) •Digital Marketing •Big Data Utilization •Company IR

Regional Bank Network

(Investment)

Internet Intermediary

Joint MONEQUE

FinTech Collaboration

Personal Lending

Insurance Plus

Regional Revitalization

Mobile Carrier

Retailer

Other Industry

Takagi IFA

Insurance Agency

Insurance Plus

FinTech

31

Strengthening Market Division

Enhancement of business infrastructure

Product Diversification

Strengthen foreign equity

Products Global

Trading

Equity business

In-house origination

of structured bonds

JGB Electronic Transactions

Targeting Revenue JPY 3 Billion/Month

Upgrade trading system

& reinforce staff


[Major achievements in 1Q-2Q] In-house origination of structured bonds: 10% Equity business: Commenced MS warrant and CB Recruitment: 13 professionals joined Position size: enlarged JGB: Electronic trading (front) system introduced Improvement of infrastructure: Financial accounting equipped

32

Enhance Great Platform Scheme

Securities firm

IFA Regional bank

Asset management

Business succession

M&A

FinTech (IT/AI)

Next generation

Platform alliances 58 entities

as of Sep. 2018

《To be added to Great Platform》

《Great Platform》 YM Sec.

Hamagin TT Sec.

Nishi-Nippon City TT Sec.

Senshu Ikeda TT Sec.

Hokuhoku TT Sec.

Tochigin TT Sec.

(Juroku Bank)

Joint

securities

with

regional

bank

Brokerage

Operation

Information

Investment bank

Education


High-net-worth

Insurance

Research

33

Comprehensive Business Alliance with Juroku Bank

Tokai Tokyo FG Juroku Bank

Business succession

M&A Regional fund

High-net-worth Fund operation

FinTech Product

development

Expand synergetic collaboration with regional banks to make a good use of alliance between regional banks and securities firm.

Joint Securities

(JV)


34

Productivity and HR Revolution

RPA Paperless

Personnel revolution

Big data

Reorganization of

admi. and branch

Productivity revolution

Professionality Humanity


35

Key Factors

Market Div. Retail Others (IB, affiliates, etc.)

JPY15~20B JPY5~7.5B JPY5~10B

Targeting JPY30B level of ordinary income in the future

Productivity Revolution

Personnel system revolution

Market Div.

targeting JPY3B/month

Segmented retail business

- High-net-worth

- Matured

- Mass, MONEQUE

Great Platform

- JV (Joint securities)

- Mid-size brokers

- IFA


36

New Business Model

Digital Payment

Small Investment

Robo-advisor

SNS


Tokai Tokyo Sec.

TT Online (FinTech)

Tokai Tokyo Sec.

Tokai Tokyo Sec.

Past

Broker Retail (Matured Market) Equity Investment Trust

Present Near Future

JV

Hokuhoku

Tochigin YM Hamagin

Nishi-Nippon Sensyu Ikeda

Market & Corporate

Investment Bankzing

IFA Financial Instruments Intermediary

FP CPA

Insurance Agency

Mobile Carrier

Retailer Others

High-net-worth

Market & Corporate

Matured

Investment Banking

JV

Hokuhoku

Tochigin YM Hamagin

Nishi-Nippon Senshu Ikeda Medium Securities Companies

Juroku

Others

New Generation

High-net-worth

Retail

Matured

Digital Payment

Small Investment

Robo-advisor

SNS

Medium Securities Companies

37

MEMO

38

MEMO

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

• Phone: +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.

Documents

IR Presentation Financial Summary & Business Strategy...2018/11/09 · Dec 29, 2017 Nov 7, 2018 Tokai Tokyo 1.11 0.94 Nomura 0.80 0.63 Daiwa 0.90 0.79 Okasan 0.88 0.72 Source: Bloomberg