IR Presentation Supplementary Material · (11%－YAMAZAKI MAZAK, Okuma) ・Business oriented Machinery ... Japan Equities 346 325 355 343 322 314 404 344 377 394 441 432 365 84 Bonds

IR Presentation

Supplementary Material

August 2018

1

Overview of Tokai Tokyo Financial Holdings 2Business Characteristics 4Financial Overview 6Consolidated 7(TTSC) Business Foundation 9Retail Segment 12Market Segment 20Joint Ventures with Regional Banks / Broker’s Broker Business 23Corporate Sales / Corporate Finance 25Wealth Management Segment (Premier VIP / Orque d’or) 28One Stop Channel Segment (MONEQUE) 30Capital Policy (Shareholder Info.) 32Business Theme (New Age’s Flag Bearer 5) 34

Contents

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

Overview of Tokai Tokyo Financial Holdings

3

Effective April 1st 2009, the Group moved into holding company structure with the following purposes. Separation of the daily routine of running security house operation from the group management duty to expedite the decision

making process Holding company structure intended to secure mobility and flexibility in order to implement expeditiously regional strategy and

alliance strategy

Overview of Tokai Tokyo Financial HoldingsGroup Structure

Overseas Business Alliance

Group Structure

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

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

as of March 31, 2018

Hokuhoku Tokai Tokyo Securities

Tokai Tokyo Securities (Asia)

Tokai Tokyo Securities Europe

Tokai Tokyo Securities (USA)

Tokai Tokyo Global Investm

ents

Tokai Tokyo Investment M

anagement S

ingapore

YM

Securities

Consolidated Subsidiaries Equity Method Affiliates

Tokai Tokyo Business Service

Tokai Tokyo Service

Tokai Tokyo Wealth C

onsulting

Tokai Tokyo Investment

Tokai Tokyo Asset M

anagement

Takagi Securities

Tokai Tokyo Research Institute

Tokai Tokyo Academ

y

Philip Tokai Tokyo Investm

ent Managem

ent

Ham

agin Tokai Tokyo Securities

Nishi-N

ippon City Tokai Tokyo Securities

Senshu Ikeda Tokai Tokyo S

ecurities

All Nippon Asset M

anagement

Eternal

Utsunom

iya Securities

Ace S

ecurities

Tokai Tokyo Securities*

Pinnacle

Kenanga Investment Bank (M

alaysia)

Guotai Junan S

ecurities (China)

Phillip

Securities (S

ingapore)

First Metro Investm

ent Corporation (Philippines)

The Bank of E

ast Asia

(Hong K

ong)

Stifel Financial C

orp. (US

A)

Bualuang S

ecurities (Thailand)

Mirae A

sset Daew

ooS

ecurities (Korea)

Bao V

iet Securities (V

ietnam)

Mebius

Business Characteristics

5

Aichi14%

Gifu2%

Mie4%

Shizuoka5%Osaka

Area12%Others

46%

TokyoArea17%

ChubuArea12%

OsakaArea14%

Others46%

TokyoArea28%

ChubuArea13%

OsakaArea14%

Others41%

TokyoArea32%

Solid Business Base in Tokai Area“Tokai Area” consists of four prefectures, Aichi, Mie, Gifu and Shizuoka.

ChubuArea25%

2014 2014 2014

Block GDP PopulationValue of Shipments of Manufactured Goods

“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)

Business Characteristics

Financial Overview

7

Revenue Breakdown by Product ‐ Consolidated

Financial OverviewConsolidated

11

5 6 5 6 5 7 5 6 4 4 3 3 2 3 3 3 3 3 3 3

8

6 74

4 55

4 5

4 4 3 32

63 4 5

64 3

3

23

3 24

65 5

2 3

1 2 3

25

5 65

6 6

1

0

0

0 01

1

0

0

1 1

2 3 1

1 21

11

21

6

54

6 54

5

5 4

4 44 3 4

45 4

46

4

3

0

00

0 0 0

0

0 0

0 01 1 1

11 1 1

12

1

30

1921

18 18 19

23

19 20

15 1614 14 13

1718 19 19

2320

17

-5

0

5

10

15

20

25

30

35

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

FYEMar 2014

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

(Billi

on Y

en)

OtherForeign & Structured BondsDomestic BondsForeign EquitiesJapan EquitiesMutual Funds

Total

8

9,231 9,516 9,759 9,767 9,967 9,923 10,244 10,07411,727 11,987

6,124

1,801 1,740 1,741 1,785 1,790 1,8651,950 2,052

1,987 2,080

991

664 808 769 731883 847 894 820

1,404 1,406

718

3,017 2,893 2,988 2,9682,972 3,064 3,129 2,941

3,433 3,362

1,766

1,808 1,902 1,825 1,8801,925 2,013 1,946 1,967

2,238 2,327

1,182

957 982 909 948918 928 884 886

929 1,013

532

1,183 1,165 1,108 1,0951,284 1,096 1,357 1,289

1,972 1,776

915

6,6363,584 3,866 4,605 2,831 2,162 1,786

3,230

3,208 4,184

1,298

2,014

2,214 1,8462,251

2,123 1,915 1,8802,011

2,4692,426

1,002

2,781

2,399 1,6602,726

2,2731,541 1,292

2,086

1,9622,402

998

465

499 469

586613

680 592590

571590

236

79

79 0

00

0 149164

00

0

30,644

27,78926,951

29,35027,588

26,044 26,11128,117

31,90933,562

15,765

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 1Q

FYEMar 2014

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Milli

on y

en)

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

Consolidated

Personnel expenses increased due to consolidation of group companies

Var

iabl

e co

stFi

xed

cost

Financial Overview

Cost Analysis

9

Revenue Breakdown by Business Segment (Quarterly)

QoQ

(Million Yen)1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

4Q FYE Mar2018 =100

Retail Sales 13,243 9,635 10,051 8,666 8,659 8,089 10,328 10,334 10,300 10,085 11,890 10,721 8,943 83Equities 6,550 4,774 5,163 3,780 4,555 3,721 5,154 5,243 6,085 6,082 6,729 6,162 5,410 88

Japan Equities 4,314 3,365 3,529 2,674 3,145 1,857 2,919 2,450 2,999 2,619 3,576 2,894 2,125 73Foreign Equities 2,236 1,410 1,634 1,106 1,410 1,864 2,244 2,793 3,085 3,463 3,151 3,268 3,285 101

Bonds 776 758 800 459 759 1,490 1,854 1,440 1,201 1,081 1,940 1,253 849 68Foreign Bonds 292 393 275 142 178 349 356 348 294 209 148 93 140 151Structured Bonds 472 354 496 276 542 1,105 1,496 1,038 888 844 1,766 1,137 665 58

Mutual Funds 5,133 2,999 2,880 2,783 2,575 2,037 2,424 2,692 2,199 2,127 2,436 2,503 2,089 83Corporate Sales 1,025 950 847 1,070 989 962 1,076 1,029 941 884 1,059 967 880 91

Equities 346 325 355 344 323 314 404 344 382 398 448 435 379 87Japan Equities 346 325 355 343 322 314 404 344 377 394 441 432 365 84

Bonds 541 469 422 569 525 512 495 479 456 372 475 345 354 103Foreign Bonds 18 40 31 78 37 30 85 41 11 5 31 31 14 45Structured Bonds 282 244 220 193 166 235 200 296 217 193 250 165 140 85Japan Bonds 240 185 171 297 322 247 211 141 229 174 192 146 198 136

Mutual Funds 115 102 80 70 66 65 62 64 65 67 78 102 102 100Market ＆ Product 4,481 4,509 3,960 4,068 3,722 4,187 5,267 6,018 5,126 6,070 6,774 6,235 5,070 81

Revenue from Customers 4,215 3,375 3,528 3,008 2,673 3,158 3,874 4,449 4,409 4,851 5,652 4,996 4,726 95Japan Equities 157 133 171 159 151 130 184 172 192 186 245 214 190 89Japan Bonds 81 69 61 107 127 84 127 129 84 66 70 71 95 134Foreign Equities 1,362 1,057 1,167 639 811 1,004 1,223 1,480 1,811 2,049 1,988 2,130 2,200 103Foreign Bonds & Other 2,615 2,116 2,127 2,104 1,585 1,940 2,341 2,668 2,322 2,550 3,349 2,581 2,240 87

Position Revenue 266 1,134 433 1,060 1,049 1,029 1,393 1,569 725 1,203 1,119 1,236 345 28Corporate Finance 154 162 291 333 236 210 397 359 249 285 348 288 355 123

Underwriting 93 110 253 270 188 128 317 197 175 173 256 156 270 173Bonds 85 68 94 103 168 106 204 116 121 93 164 115 164 142Equities 8 42 158 167 20 21 112 81 54 79 92 41 106 258

Other 61 52 39 63 48 82 80 161 74 111 92 132 84 64

FYEMar 2018

FYEMar

2019

FYEMar 2016

FYEMar 2017

Financial Overview(TTSC) Business Foundation

10


Mar 2014=100

Mar 2018=100

Total 108 100127 100

Japan Equities 123 99Foreign Equities 300 111

88 10395 9976 98

125 100Mutual FundsOther

Equities

Domestic BondsForeign & Structured Bonds

Mar 2014=100

Mar 2018=100

Total 109 101127 100

Japan Equities 124 100Foreign Equities 294 112

114 10393 10298 10056 102Other

Domestic BondsForeign & Structured BondsMutual Funds

Equities

1,195 1,426 1,283 1,3431,475 1,464

3469

47 6892 10289

8375 77

76 78236

240197 223

226 224685

685614 564

532 520200

247

223 235249 250

2,440

2,752

2,441 2,5122,652 2,640

0

500

1,000

1,500

2,000

2,500

3,000

FYEMar2014

FYEMar2015

FYEMar2016

FYEMar2017

FYEMar2018

1Q FYEMar2019

Other

Mutual Funds

Foreign &Structured Bonds

Domestic Bonds

Foreign Equities

Japan Equities

Total

1,987 2,339 2,080 2,257 2,475 2,469

3672

49 7095 106597

622648 630

657 679450480

324 378409 418777

834749 693

760 762470495

241 246260 265

4,3204,844

4,094 4,2764,659 4,701

0

1,000

2,000

3,000

4,000

5,000

6,000

FYEMar2014

FYEMar2015

FYEMar2016

FYEMar2017

FYEMar2018

1Q FYEMar2019

Other

Mutual Funds

Foreign &Structured BondsDomestic Bonds

Foreign Equities

Japan Equities

Total

Assets under Custody of Whole Company (Tokai Tokyo Securities)

Retail Assets under Custody (Tokai Tokyo Securities)

Year to Year Comparison: Assets under Custody of Whole Company (Tokai Tokyo Securities)

Year to Year Comparison: Retail Assets under Custody (Tokai Tokyo Securities)

(Billi

on Y

en)

Trend in Assets under Custody(B

illion

Yen

)

11

Trend in Assets under Custody(by Customer and Product)

QoQ

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 4Q FYE Mar2018 = 100Retail Customers 2,798 2,492 2,628 2,441 2,298 2,339 2,576 2,512 2,591 2,678 2,809 2,652 2,640 103

Japan Equities 1,449 1,290 1,388 1,283 1,204 1,242 1,371 1,343 1,400 1,470 1,559 1,475 1,464 105Foreign Equities 64 48 53 47 42 48 58 68 73 82 93 92 102 112Domestic Bonds 79 74 74 75 78 78 74 77 74 73 75 76 78 99Foreign & Structured Bonds 245 219 222 197 191 205 230 223 239 242 233 226 224 101Mutual Funds 690 623 647 614 565 550 593 564 551 558 569 532 520 101Other 268 236 242 223 215 213 249 235 251 249 279 249 250 99

Corporate Customers 2,195 2,009 2,017 1,652 1,634 1,666 1,756 1,763 1,861 1,967 2,061 2,006 2,061 106Japan Equities 939 817 861 797 781 808 889 913 955 1,018 1,076 999 1,005 107Foreign Equities 3 2 2 2 2 2 2 2 2 2 3 3 3 100Domestic Bonds 574 560 563 573 576 575 575 552 568 576 582 581 600 101Foreign & Structured Bonds 239 219 237 127 134 143 145 154 177 180 185 182 194 102Mutual Funds 149 142 124 134 130 128 131 129 145 176 200 228 242 121Other 288 266 228 17 10 9 10 11 11 12 13 11 15 109

Whole Company 4,993 4,502 4,645 4,094 3,933 4,006 4,333 4,276 4,453 4,646 4,870 4,659 4,701 104Japan Equities 2,389 2,108 2,250 2,080 1,985 2,051 2,261 2,257 2,355 2,489 2,635 2,475 2,469 106Foreign Equities 67 50 55 49 44 50 60 70 75 85 96 95 106 113Domestic Bonds 653 635 638 648 655 653 650 630 643 650 658 657 679 101Foreign & Structured Bonds 485 439 460 324 326 349 375 378 417 423 418 409 418 101Muual Funds 840 765 771 749 696 678 725 693 697 734 769 760 762 105Other 556 502 470 241 225 222 260 246 263 262 292 260 265 100

(Billion Yen)

FYEMar 2016

FYEMar 2017

FYEMar 2019

FYEMar 2018


12

13.4% 11.1% 11.5%15.5% 17.5%

19.8%17.2%

28.6%

26.5% 26.8%

31.0% 31.2%

34.0%

32.8%

46.9%

49.2%48.7%

43.8% 42.7%

38.9%

42.2%

8.5%

10.6%

10.5%

7.3% 6.5%

5.5%

5.9%

2.5%

2.6%

2.5%

2.4% 2.1%

1.9%

1.9%

0

5,000

10,000

15,000

20,000

25,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

Non-Face-to-FaceGeneral

Middle

Wealth

High Wealth

(Million Yen)

Revenue Breakdown by Wealth Assets under CustodyBreakdown by Wealth

High Wealth :Holding over 100 million yen in assets under custodyWealth :30 million to 100 million yenMiddle :5 million to 30 million yenGeneral :less than 5 million yen

Financial OverviewRetail Segment

535 503 584 610 725 744 742

637 583 615 614

661 654 653

990 950

918 911 917 892 886

238 240 229

204 194 182 180

210 201

215 232 254 253 260

0

500

1,000

1,500

2,000

2,500

3,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

(Billion Yen)

13

Revenue Breakdown by Age


Assets under CustodyBreakdown by Age

14

60.3% 60.6% 63.7%

65.7% 67.1%67.5%

68.7%

22.2%

20.8%20.1%

20.3% 19.1%

19.5%

18.7%

15.0%

16.1%

13.7%

11.6% 11.7%

11.1%

10.7%

2.5%

2.6%

2.5%

2.4% 2.1%

1.9%

1.9%

0

5,000

10,000

15,000

20,000

25,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Million Yen)

Non-Face-to-Face

WesternJapan

EasternJapan

CentralJapan

Revenue Breakdown by Region


1,577 1,508 1,591 1,615 1,739 1,731 1,722

505 474

497 494 518 510 508

318 294

260 229 240 230 230

210 201

215 232

254 253 260

0

500

1,000

1,500

2,000

2,500

3,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Billion Yen)

Assets under CustodyBreakdown by Region

15

7,6796,203 5,003 5,369 5,619

6,477

2,125

3,645

2,7403,273

5,0376,550

6,422

3,285

1,534

1,258 2,249

3,3022,285

3,195

849

8,131

5,663 4,611

5,116 4,327

4,955

2,089

1,889

2,8521,612

1,839 1,602

1,563

594

22,878

18,717

16,748

20,663 20,385

22,611

8,943

0

5,000

10,000

15,000

20,000

25,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Million Yen)

OtherMutual FundsBondsForeign EquitiesJapan Equities

Total

Revenue Breakdown by Product

1,322 1,302 1,267 1,377 1,514 1,527 1,517

49 48 49 69

84 93 104 80 79 82

81 77 80 82 226 205 215

234 255 238 235

850 830 754 787

794 766 753

21 18 19

23 26 27 29

0

500

1,000

1,500

2,000

2,500

3,000

1H 2H 1H 2H 1H 2H 1Q

FYE Mar 2016

FYEMar2017

FYEMar2018

FYEMar

2019

Other

MutualFunds

Foreign &StructuredBonds

DomesticBonds

ForeignEquities

JapanEquities

(Billion Yen)

Retail SegmentFinancial Overview

Assets under Custody Breakdown by Product

(Mostly foreign/structured bonds)

16

Net Inflow of Cash & Securities (Retail Customers)


20

15

-2

8

-5

5

-18

15

12 0

5

-8

5

-1

62

-10

22

16

3-0 -1

4

-12

18

-9

-20

-10

0

10

20

30

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

FYEMar 2017

FYEMar 2018

FYEMar2019

(Billion yen)Net Inflow of Cash Net Inflow of Securities Net Inflow of Cash and Securities

* Excluding the transfer amount to JV Securities Companies in 2Q & 4Q FY2016

Retail Segment

17

Financial Overview

717

620649

814

934

768

613

693743

844

272

0

100

200

300

400

500

600

700

800

900

1,000

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYE Mar2014

FYE Mar2015

FYE Mar2016

FYE Mar2017

FYE Mar2018

FYEMar2019

(Billion Yen)34

3127 26 25

19 17 19 1721

18

05

10152025303540

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYE Mar2014

FYE Mar2015

FYE Mar2016

FYE Mar2017

FYE Mar2018

FYEMar2019

（Billion Yen）

13

98 8 7

65 5 5

6

2

02468

101214

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYE Mar2014

FYE Mar2015

FYE Mar2016

FYE Mar2017

FYE Mar2018

FYEMar2019

(Billion Yen)

Margin Trading PositionsTrading Volume of Japan Equities

Japan Equities Commission

Source: Data from Retail Company

18


39 48

29 36

51

72

50 49

86 96

107

7 13

20

35

59

74 72 63

92

116 126

3 7 8

0

20

40

60

80

100

120

140

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar2013

FYEMar2014

FYEMar2015

FYEMar2016

FYEMar2018

FYEMar2019

Tokai Tokyo SecuritiesJoint Ventures & Broker's Broker BusinessTakagi Securities

(Billion Yen)

Foreign Equities Assets under Custody


200

427 428

244

280305

196

124

94110

7898

38

651

771 785

752

735770

689 675

601 619 582557

532

0

100

200

300

400

500

600

700

800

900

0

50

100

150

200

250

300

350

400

450

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar2013

FYEMar2014

FYEMar2015

FYEMar2016

FYEMar2017

FYEMar2018

FYEMar2019

Sales Volume (LHS)Mutual Funds Assets under Custody (RHS)

(Billion Yen) (Billion Yen)

Mutual Funds Sales Volume / Assets under Custody

19


925 850 988 9061039 958 1033 912 1037 981

1065

191190

190190

193193

221279

283 282287

0

200

400

600

800

1,000

1,200

1,400

1,600

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYE Mar2014

FYE Mar2015

FYE Mar2016

FYE Mar2017

FYE Mar2018

FYEMar2019

Employees of Retail Company

Second Employees to Joint Ventures

(Number of Staff)


Number of Sales Representatives

20

1,004 412 255 1,343 595 688281

587987

2,196

2,196

1,163 1,753

424

2,2131,633

1,819

2,685

4,0424,203

2,177

4,6074,708

3,647

4,619 5,147

6,021

2,062

576

286

-8

439 255

341

124

8,989

8,0287,909

11,284 11,204

13,009

5,070

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar 2019

(Million Yen) Other Foreign Bonds and Derivatives

Foreign Equities Bond Trading

Equity Trading

Total

Financial OverviewMarket SegmentTrading Revenue by Product

21

7,5906,536

5,831

8,3239,265

10,653

4,725

1,399

1,4922,078

2,9621,928

2,355

345

617303

201

139 166

124

-54

9,6078,332

8,110

11,424 11,359

13,132

5,016

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Milli

on Y

en)

Fund RevenuePosition RevenueCustomer Revenue Flow

Total

2,791 3,172 2,508 3,471 3,962

4,039

1,689

4,128 2,829

2,795

3,967 4,289

5,286

2,251

671

536

528

879

1,016

979

582

254

146

97

59

7,590

6,536 5,831

8,323

9,265

10,653

0

2,000

4,000

6,000

8,000

10,000

12,000

1H 2H 1H 2H 1H 2H 1Q

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Milli

on Y

en)

OtherTakagi SecuritiesBroker's Broker BusinessJVTTSC

TotalTotal

4,726

Breakdown of Customer Revenue FlowRevenue Breakdown by Category

Financial OverviewMarket Segment

22

Market SegmentFinancial Overview

Number of Staff (Market Segment)

136 131 114 125137 138 141 140 147 149 142 147 146

0

2040

6080

100120

140

160

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYE Mar2013

FYE Mar2014

FYE Mar2015

FYE Mar2016

FYE Mar2017

FYE Mar2018

FYEMar2019

(Number of Staff)

23

Joint Ventures with Regional Banks / Broker’s Broker BusinessFinancial Overview

Assets under Custody by Product – from JVs (6 Entities)

276 345 365 346 345436 535 561 56616

25 24 23 2427

31 34 3778

55 57 53 4972

75 77 78223 205 189 220

255 281351 320 339

310 340 309 301 293340

353 357 352

5977 67 56 59

88

99 100 92

9631,048 1,010 998 1,025

1,245

1,444 1,450 1,464

0

200

400

600

800

1,000

1,200

1,400

1,600

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

Other

Mutual Funds

Foreign &StructuredBondsDomesticBonds

ForeignEquities

Japan Equities

(Billi

on Y

en)

Total

24

Joint Ventures with Regional Banks / Broker’s Broker BusinessFinancial Overview

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 101 1 1 1 1 1 0 1 1 1 1

1 1 1 1 12 22 2 2 2 1

1 1 1 2 2

2 24 3 23 2

2 2 22 2

1 1 1 2

2 2 2

22

20 0

0 0 00 0

0 0 0 0

0 0 0

00

05 56 6 6

5 54 4 4

56 6 6

87

6

0123456789

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Other

Mutual Funds

Foreign &Structured Bonds

Domestic Bonds

Foreign Equities

Japan Equities

(Billion Yen)Total

72 94 110134 163 130 140 93 107 89

136 119 146 134188 166 14816

30 3543

4243 49

23 38 5048 56

54 6059 69 71

5755

8172

7851 43

3835 36

53 7775 81

12694

74

7272

70 5560

49 48

3742 33

4658 48 54

6858

46

00

0 00

1 0

00 0

00 0 2

00

0

221258

299 306346

276 282

194224 210

285318 325 334

444391

344

0

100

200

300

400

500


FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Other

Mutual Funds

Foreign &StructuredBondsDomestic Bonds

Foreign Equities

Japan Equities

(Billion Yen) Total

39 4469 63 71

47 38 33 31 3250

75 70 73

122

8968

020406080

100120140


FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

(Billion Yen)JV Affiliates

Product Revenue ‐ from JVs (6 Entities)

Sales of Foreign & Structured BondsSales Volume ‐ from JVs (6 Entities)

Joint Ventures

1012 11

9 8

1213

15

6

02468

1012141618

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

（Billion Yen） Operating Revenue

25

Corporate Sales / Corporate Finance Financial Overview

573 656 671 699 636 747 772873

365

391 406425 468 569 352 403

338

199

381532 584 523

468 622 427 477

155

175

229 217 150 132 126 132182

102

142

187 77 77 146 258 82138

44

1,661

2,011 1,975 1,917 1,9512,104

1,8252,028

880

0

500

1,000

1,500

2,000

2,500

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Other

Mutual Funds

Foreign &StructuredBondsDomestic Bonds

Japan Equities

(Million Yen) Total

394 504 463 512 583 576 566 612 284

529539 617 600

627 644 587 523

290

114214

228 228204

179 135 195

28

344418 395 331

299 463336 429

142

86100 112 123

83 91 70 111

5469

7393 65 113 57 86 55

41

125

162 66 59 4194

45105

41

1,661

2,011 1,975 1,917 1,9512,104

1,8252,028

881

0

500

1,000

1,500

2,000

2,500

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Retail Investors

Unlisted Companies

Listed Companies

Public Institutions

Non-Profit Corporations

Small and Medium-SizedFinancial Institutions

Institutional Investors

(Million Yen) Total

1,6612,011 1,975 1,917 1,951 2,104 1,824 2,028

880

346

455203 523 315

523

349 412

270

154

226

113101

129

101

185 224

85

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Other Fees & CommissionsUnderwritingCorporate Sales

(Million Yen)

Revenue Breakdown by Customer Segment(Corporate Sales)

Corporate Sales

Revenue Breakdown by Product(Corporate Sales)

Revenue of Corporate Sales & Corporate Finance Unit

26

Corporate Sales / Corporate FinanceFinancial Overview

779 883 780 773 779 875 968 940 945

547 534 555 570 572 549 573 578 597

211 234 214 120 134 144 169 171 184 337

382 395 140 124 125

173 224 237 1

2 1

1 2 2 2 2 7

1,876 2,036

1,948 1,605 1,614

1,697 1,886 1,919 1,972

0

500

1,000

1,500

2,000

2,500

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Other

Mutual Funds

Foreign Bonds

Domestic Bonds

Foreign Equities

Japan Equities

(Billion Yen)Total

227208 115

151219

231

197

193

125

55 14 38 47 5590

19 87 39

19 20

2622

25 27 27

1612

85

17

813 13

1611

7

051015202530

050

100150200250300350

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

Municipal BondsOther BondsNumber of Underwritings (Lead Manager of Municipal Bonds)Number of Underwritings (Lead Manager of Other Bonds)

(Million Yen) (Number of Underwritings)

40

187

44

289

16

15388 86

3325

45

6

31

25

41

46 4773

6

21

913

6

12

3 6 35

85 6 6 4

7

11

30

5

10

15

20

25

050

100150200250300350

1H 2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar2019

CB PO IPONumber of Underwritings (PO)Number of Underwritings (IPO)

(MIllion Yen) (Number of Underwritings)

Corporate Assets under Custody

Bond Underwriting Fees Equities Underwriting Fees

27

Municipal Bond Underwriting (Lead Manager)

Amount Share Amount Share Amount Share(Million Yen) (%) (Million Yen) (%) (Million Yen) (%)

1 Mitsubishi UFJ Morgan Stanley 3,041,540 20.29 586 1 Daiwa 436,824 20.9 83 1 Nomura 92,100 26.5 35

2 Nomura 2,960,373 19.75 595 2 Nomura 400,855 19.2 78 2 Daiwa 75,843 21.82 34

3 Mizuho 2,960,321 19.75 605 3 SMBC Nikko 379,514 18.2 76 3 SMBC Nikko 56,585 16.28 67

4 SMBC Nikko 2,553,871 17.04 576 4 Mitsubishi UFJ Morgan Stanley 314,558 15.1 66 4 Mizuho 48,884 14.06 55

5 Daiwa 2,542,052 16.96 582 5 Mizuho 296,596 14.2 63 5 Mitsubishi UFJ Morgan Stanley 48,008 13.81 23

6 Tokai Tokyo 252,490 1.68 156 6 Tokai Tokyo 121,328 5.8 26 6 SBI 9,449 2.72 75

7 Shinkin 185,600 1.24 97 7 Goldman Sachs 57,200 2.7 12 7 Ichiyoshi 3,830 1.1 28

8 Goldman Sachs 164,400 1.10 62 8 Shinkin 35,000 1.7 10 8 Okasan 2,740 0.79 38

9 Okasan 96,700 0.65 95 9 Okasan 19,529 0.9 6 9 Tokai Tokyo 2,298 0.66 9

10 Merrill Lynch Japan 53,200 0.35 35 10 Barclays 11,600 0.6 3 10 Monex 2,073 0.6 37

Company Name Numberof DealsRank Company NameNumberof Deals Rank Company Name

Numberof Deals Rank

Total Straight Bond Underwriting IPO Underwriting

Sources: Thomson Reuters, Capital Eye News

Corporate Sales / Corporate Finance

League Table (FYE Mar 2018: April 1, 2017 to March 31, 2018)

Financial Overview

28

623

865

1,079

1,250

1,509 1572

451

644

865982

1126 1176

0

200

400

600

800

1000

1200

1400

1600

1800

FYEMar 2014

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

1Q FYEMar 2019

Premier Vip Club Members

Premier Club Members

（Accounts）

Wealth Management SegmentPremier VIP Club / Premier Club Members

Financial Overview

29

“Orque d’or”

Membership service brand for qualified high‐wealth clients

30

One Stop Channel SegmentFinancial Overview

48 77 94 95

105 95 83 62 63 49 83 69 75 74

106 99 72 2 2

3 3 3 4 1 0 4 7

17 17 12 7 3 2

1 18

34 41 27 20 30 39

20 15 26

19 25 9 24 6 7

4 113

124 125 133

160 128

107

111 106 109 111 116

103 104 98 97

86

15

15 17 21

26 25 48

23 24 22

41 50 48 44

58 53

42

199

256 279 281

314 282 281

218 217 217

270 282 249 257

273 259

206

0

50

100

150

200

250

300

350

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

FYEMar 2015

FYEMar 2016

FYEMar 2017

FYEMar 2018

FYEMar

2019

Other

Mutual Funds

Foreign Bonds

Domestic Bonds

Foreign Equities

Japan Equities

(Million Yen)

TotalRevenue Breakdown by Product

Direct Margin Trading

705

3,368 3,241 4,531

7,913 9,235

11,004 11,046

181

505

736

1,066

1,2981,395 1,413 1,452

0

2,000

4,000

6,000

8,000

10,000

12,000

0

300

600

900

1,200

1,500

2H 1H 2H 1H 2H 1H 2H 1Q

FYEMar2015

FYEMar 2016

FYEMar2017

FYEMar 2018

FYEMar2019

Margin Trading Positions(Right Axis )Number of Direct Margin Trading Accounts(Left Axis) （Million Yen）(Accounts)

31

Financing needs(housing loan)

Insurance needs（life/property, security/saving)

Asset management needs（investment）（succession）

Offer services necessary for each life stage（One-stop for a lifetime）

Insurance Bank / Loan Investment

One‐stop channel for asset building of the younger generation

MONEQUEOne Stop Channel Segment

Capital Policy

33

Major Shareholders No. ofshares (K)OwnershipRatio (%)

- "Schroders Group"(*) 21,171 7.82

1 MUFG Bank, Ltd. 12,016 4.44

2 Japan Trustee Services Bank, Ltd. (Trust Account) 11,446 4.23

3 The Master Trust Bank of Japan, Ltd. (Trust Account) 10,153 3.75

4 Mitsui Sumitomo Insurance Co., Ltd. 7,283 2.69

5 Toyota Financial Services Corporation 7,280 2.69

6 The Bank of Yokohama, Ltd. 7,014 2.59

7 Nippon Life Insurance Company 5,611 2.07

8 J. P. Morgan Chase Bank 385166 5,197 1.92

9 Sumitomo Mitsui Trust Bank, Limited 4,800 1.77

10 Meiji Yasuda Life Insurance Company 4,406 1.63(As of March 31, 2018)

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 7.82% of Tokai Tokyo Financial Holdings, Inc. as of March 31, 2018

Business Theme

35

Organizational Administration Retail Sales Operation- Branch reorganization

- Sales force with new IT equipmentHuman Resource Management

Practice

System Infrastructure

Integrate all the group resources and pursue synergy for the group

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

36

Pursuit of “Humanity” & “Expertise”, “Heart” & “Professionalism”

The need for high expertise

High-net-worth segment

Insurance Agent MONEQUE

Market and Dealing

Hire experts + Establish suitable evaluation & compensation practices

Hiring / Allocation / TrainingEvaluation / Compensation

Determine the right number ofpersonnel and its allocation to match the operation getting larger & more technical

Train sales personnel to become able to induce prospects rather than push them

Accurate grasp of individual employee’s

skill set

Build database of employees’

skills and expertise

The quest for professional expertise

Pursuit of Humanity (Heart) : Raise human power and explore work-style that accommodates individual personality

Establish the human-power based marketing style that cannot be substituted by robot

Train employees to become able to offer value to customers

Elevate the level of the group’s corporate diversity that facilitates diversification & specialization of its business operation

Accomplish both “work-style revolution” that nurtures each employee’s individuality

& cutting-edge experts recruitment

Overhaul the entire HR practice including bonus payment

• Separate evaluation & compensation for experts from that for ordinary employees

• Overall personal assessment & performance evaluation allocates more weight on expertise & special skill

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

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.

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 Communications DepartmentTEL: +81-3-3517-8618 FAX: +81-3-3517-8314E-mail: [email protected]

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IR Presentation Supplementary Material · (11%－YAMAZAKI MAZAK, Okuma) ・Business oriented Machinery ... Japan Equities 346 325 355 343 322 314 404 344 377 394 441 432 365 84 Bonds