Result Review on 2nd Qtr of Fiscal 2010 that ends in March ... · 3. Attributes analysis of business foundation (1) Trend in Asset under Custody (2) Trend in each geographical growth

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November 9, 2010

Tokai Tokyo Financial Holdings, Inc.

Result Review on 2nd Qtr of Fiscal 2010that ends in March 2011

Aiming to be “The Premier House”

1

Table of contents

I. Market Analysis1. Trends in Stock price and Foreign

Exchange2. Interest Rate Changes and Corresponding

Monetary Policies in Japan, US and EuropeII. Overview of consolidated results

1. Overview of consolidated results2. Analysis of consolidated results

(1) Historical Trend(2) Product and business(3) Trend analysis of cost

3. Attributes analysis of business foundation(1) Trend in Asset under Custody(2) Trend in each geographical growth(3) Trend in Assets under Custody by customer

segment(4) Current status of revenue generation shares (5) League table assessment of bond

underwriting4. Matters of special note

III. Progress update on Strategic Goals1. The progress on “TT Revolution”

(1) Primary measures for “TT Revolution”(2) Growth Strategy(3) Productivity Booster Strategy(4) Triple C Strategy(5) How do we fare in terms of numerical target

achievement?2.Our focuses for the 2nd fiscal half of 2010 and after

(1) Growth Potential(2) Productivity Booster(3) Promote community focus and customer

loyalty

IV. References

Inquiries to be directed to:

* Unless otherwise stated, all the numeric data are presented on consolidated basis.

2

I. Market Analysis

3

Trends in Stock price and Foreign Exchange

Stock price index in major economies Dollar/Yen, Euro/Yen

90

100

110

120

130

140

150

160

170

180

190

200

210

220

2009/3/27 2009/7/3 2009/10/9 2010/1/15 2010/4/23 2010/7/30 2010/11/5

(Tokai Tokyo Research Center prepared the graphs)

（The respective moving index in each economy isexpressed as relative change against the base level setas 100 as of the end of March 2009)

Bombay Sensex

Bovesp

DAX

DJIA

Shanghai SEC i

Nkkei Stock Average

70

80

90

100

110

120

130

140

09/3/31 09/6/18 09/9/7 09/11/25 10/2/12 10/5/4 10/7/22 10/10/11

Dollar/YenEuro/Yen

Dollar/Yen

Euro/Yen

(Tokai Tokyo Research Center prepared the graphbased on information derived from QUICK)

4

Comprehensive Monetary Easing conductedPolicy Rate Effected within the range of 0.0％-0.1％ (Return Essentially to “Zero Rate”)5 Trillion Yen Asset Purchase Fund EstablishedBuying Exchange Traded Index Linked Fund (ETF) and Real Estate Investment Trust (J-REIT)

Comprehensive Monetary Easing conductedPolicy Rate Effected within the range of 0.0％-0.1％ (Return Essentially to “Zero Rate”)5 Trillion Yen Asset Purchase Fund EstablishedBuying Exchange Traded Index Linked Fund (ETF) and Real Estate Investment Trust (J-REIT)

Monetary Policies of Major EconomiesJapan

Fed Fund Rate Induction Target Range “0 to 0.25％”Operated QE2 following Nov. FOMC Decision - (Additional purchase of $600 Billion US Treasury by Mid-2011)Attempt to maximize Employment and stabilize Consumer PricesBe fully prepared to take Policy Measures as needed while watching Economy Trend and Financial Market

Fed Fund Rate Induction Target Range “0 to 0.25％”Operated QE2 following Nov. FOMC Decision - (Additional purchase of $600 Billion US Treasury by Mid-2011)Attempt to maximize Employment and stabilize Consumer PricesBe fully prepared to take Policy Measures as needed while watching Economy Trend and Financial Market

US

Freezing Market Intervention Trigger Rate at 1.00% for 1.5 Yearsfor Euro ZoneStay poised to ease Policy Rate reflecting the authorities’assessment of Inflation Expectation Level as manageable Resumed Government Bonds purchase after 3-week blankGradually accelerate the move toward Monetary Normalization, notably differentiating their Monetary Policy from that of US Authority

Freezing Market Intervention Trigger Rate at 1.00% for 1.5 Yearsfor Euro ZoneStay poised to ease Policy Rate reflecting the authorities’assessment of Inflation Expectation Level as manageable Resumed Government Bonds purchase after 3-week blankGradually accelerate the move toward Monetary Normalization, notably differentiating their Monetary Policy from that of US Authority

EU

Interest Rate Trends (10 Year Treasury Note in 3 Economies )

Interest Rate Changes and Corresponding Monetary Policies in Japan, US and Europe

0.5

1

1.5

2

2.5

3

3.5

4

4.5

09/3/31 09/6/18 09/9/7 09/11/25 10/2/15 10/5/5 10/7/23 10/10/12

%

US

Germany

Japan

(Tokai Tokyo Research Center prepared the graphbased on information derived from QUICK)

5

II. Overview of consolidated results

6

1. Overview of consolidated results

(Million yen)FY2010

1Q 2Q 1H10.4.110.6.30

10.7.110.9.30

10.4.110.9.30

FY20092H＝100

FY20091H＝100

Total Revenues 13,843 11,344 25,188 89 84 SG&A Expenses 12,008 11,423 23,406 101 100　 (Total Revenues ＝100） 87 101 93Operating Income 1,381 -413 993 22 16Ordinary Income 1,922 -203 1,744 33 26　 (Total Revenues ＝100） 14 - 7Income Before Tax 1,668 -273 1,395 27 21　 (Total Revenues ＝100） 12 - 6Net Income 2,580 -238 2,342 69 62　 (Total Revenues ＝100） 19 - 9 Income Tax - current & deferred -916 -37 -954 - -

Year onYear

Comparison withprevious 2H

FY2009

7

2. Analysis of consolidated results(1) Historical Trend

-5,000

0

5,000

10,000

15,000

20,000

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

FY2008 FY2009 FY2010

Total Revenues, Ordinary Income

-1,500

0

1,500

3,000

4,500

6,000

Income before Tax, Net Income

Total RevenuesOrdinary IncomeIncome Before TaxNet Income

(Million yen) (Million yen)

8

2. Analysis of consolidated results(2) Product and business ⓐ

Trend in Total Revenues (Consolidated)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

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

FY2008 FY2009 FY2010

(Million yen)

Interest and Dividend IncomeTrading Profit and LossFees and Commissions

9

2. Analysis of consolidated results (2) Product and business ⓑ

Trend in Commissions (Consolidated)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

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

FY2008 FY2009 FY2010

(Million yen)Other CommissionsSubscription and DistributionUnderwriting and SalesBrokerage Commissions

10

Trend in Sales and Assets under Custody of Investment Trusts(about Tokai Tokyo Securities operation alone)

2. Analysis of consolidated results(2) Product and business ⓒ

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000(Million yen)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000(Million yen)

SalesAssets under Custody

Sales 94,166 56,731 42,513 51,014 89,458 129,671 177,224 120,622 132,302 90,244

Assets under Custody 1,033,308 877,554 613,384 597,866 685,209 750,211 822,808 847,051 1,158,489 1,202,023

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

FY2008 FY2009 FY2010

Sales Assets under Custody

* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.

11

Trend in Sales and Agency Commissions of Investment Trusts(about Tokai Tokyo Securities operation alone)

2. Analysis of consolidated results(2) Product and business ⓓ


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500(Million yen)

Sales CommissionsAgency Commissions

Sales Commissions 1,908 1,202 1,040 1,202 2,526 3,603 4,003 3,115 3,532 2,295

Agency Commissions 1,510 1,372 845 698 776 850 907 915 1,067 1,057

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

FY2008 FY2009 FY2010

12

2. Analysis of consolidated results(2) Product and business ⓔ

Trend in Trading Profit and Loss (Consolidated)

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

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

FY2008 FY2009 FY2010

(Million yen)Stocks Bonds & Currencies Trading Profit and Loss

13

Trend in Sales of Foreign Currency Bonds and Structured Bonds(about Tokai Tokyo Securities operation alone)

2. Analysis of consolidated results(2) Product and business ⓕ


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

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

FY2008 FY2009 FY2010

Bonds in foreign currenciesStructured bondsTotal sales

(Million yen)百

14

Trend in Foreign Stocks (about Tokai Tokyo Securities operation alone)

2. Analysis of consolidated results(2) Product and business ⓖ


Revenues from foreign stocks

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

375 81 134 311 1,138 1,318 1,612 1,264 1,206 1,808

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

FY2008 FY2009 FY2010

(Million yen)

15

Trend in Earnings in Dealing Division(about Tokai Tokyo Securities operation alone)

2. Analysis of consolidated results(2) Product and business ⓗ


-1,000

-500

0

500

1,000

1,500

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

FY2008 FY2009 FY2010

Stock Proprietary TradingBond Proprietary TradingProprietary Trading Profit/Loss

(Million yen)

16

2. Analysis of consolidated results(3) Trend analysis of cost

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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

FY2008 FY2009 FY2010

(Million yen)

OthersDepreciation expensesOffice expensesOccupancy and rentalPersonnel expensesTrading-related expenses

17

3. Attribute analysis of business foundation(1) Trend in Asset under Custody

(about Tokai Tokyo Securities operation alone)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

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

FY2008 FY2009 FY2010

(100 million yen)

OthersInvestment TrustsBondsStocks

18

Number of Accounts by Region

3. Attributes analysis of business foundation(2) Trend in each geographical growth




050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

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

FY2008 FY2009 FY2010

(Accounts)Western JapanCentral JapanEastern Japan

19

3. Attributes analysis of business foundation (3) Trend in Assets under Custody by customer segment


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

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

FY2008 FY2009 11年3月期

GeneralMiddleWealthHigh Wealth

(Million yen)

20

3. Attributes analysis of business foundation(4) Current status of revenue generation shares


* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.Retail includes the Retail Business Unit, the Main Office Sales Unit, and the Toyota Business Unit (excl. corporate customer segment)Investment Banking includes the Investment Banking Business Unit, Main Office Corporate Sales Dept., and Toyota Corporate Client Dept.

　(Tokai Tokyo Securities shifted from the internal company systemto the business unit system in April 2010.)

Revenues by Cutomer Segment

Retail69%

Dealing0%

InvestmentBanking

31%

Others30%

21

FY2009 Domestic SB Lead Managing FY2010 1H Domestic SB Lead Managing

(Tokai Tokyo Securities prepared the data based on information derived from CAPITAL EYE NEWS)

* Incl. company's own SB

3. Attributes analysis of business foundation (5) League table assessment of bond underwriting

Rank Company # of Deals Amount(Milion yen) Share (%)

1 Nomura Securities 177 2,437,219 23.82

2 Mizuho Securities 159 2,186,685 21.38

3 Mitsubishi UFJ Securities 125 1,927,264 18.84

4 Daiwa Securities Capital Markets 156 1,907,203 18.64

5 Nikko Cordial Securities 41 704,354 6.89

6 Nikko Citigroup 52 502,070 4.91

7 Goldman Sachs 7 108,142 1.06

8 SMBC Friend Securities 1 106,667 1.04

9 Merrill Lynch Japan Securities 11 81,997 0.80

10 Barclays Capital 7 59,703 0.58

11 Toyota Financial Services Securities 7 44,514 0.44

12 Mizuho Investors Securities 2 43,711 0.43

13 Shinkin Securities 6 33,887 0.33

14 Morgan Stanley 4 22,507 0.22

15 UBS Securities 5 20,374 0.20

16 Deutsche Securities 4 17,000 0.17

17 SBI Securities 1 10,000 0.10

18 Shinsei Securities 1 5,000 0.05

19 Tokai Tokyo Securities 1 4,500 0.04

20 BNP Paribas Securities 1 3,889 0.04

21 Okasan Securities 1 3,333 0.03

Rank Company # of Deals Amount(Milion yen) Share (%)

1 Mizuho Securities 94 1,030,849 21.19

2 Nomura Securities 84 960,801 19.75

3 Nikko Cordial Securities 83 957,740 19.69

4 Mitsubishi UFJ Morgan Stanley 78 907,780 18.66

5 Daiwa Securities Capital Markets 66 689,451 14.17

6 Merrill Lynch Japan Securities 13 73,008 1.50

7 Goldman Sachs 10 52,099 1.07

8 Tokai Tokyo Securities 5 35,400 0.73

9 Nikko Citigroup 3 34,843 0.72

10 BNP Paribas Securities 7 29,304 0.60

11 UBS Securities 5 24,182 0.50

12 SBI Securities 1 18,000 0.37

13 Deutsche Securities 3 17,706 0.36

14 Shinkin Securities 2 12,579 0.26

15 JP Morgan 1 9,412 0.19

16 Barclays Capital 1 7,600 0.16

17 Mizuho Investors Securities 1 3,600 0.07

22

4. Matters of special note

Attribute Analysis for Extraordinary Loss and Profit

Gains on transfer of Fukuoka BranchReversal of Financial product transaction liabilities reserve

Gains on transfer of Fukuoka BranchReversal of Financial product transaction liabilities reserve

Reserve for Bad loss related to employee’s foul conductLoss from market valuation of securitiesLoss from fixed asset retirement

Reserve for Bad loss related to employee’s foul conductLoss from market valuation of securitiesLoss from fixed asset retirement

23

III. Progress update on Strategic Goals

24

1. Progress on “TT Revolution”(1) Primary measures for “TT Revolution”

Productivity Growth Potential

Customer Loyalty Community House

Communication

25

Blue Ocean Strategy

Alliance with Regional Banks

M&A

Partnership with Toyota Group（Integration with Toyota FS Securities and

Subsequent Game Planning ）

1. Progress on “TT Revolution”(2) Growth Strategy

26

Productivity Booster

Prioritize Young Employees

Branch Network Optimization

Product Lineup and Information Provision

Awaken Inactive Accounts

Focus on High Wealth Clientele

1. Progress on “TT Revolution”(3) Productivity Booster Strategy

27

Communication

Customer Loyalty

Community House

1. Progress on “TT Revolution”(4) Triple C strategy

28

1. Progress on “TT Revolution”(5) How do we fare in terms of numerical target achievement?

Assets under Custody：¥6 Trillion (Includes numbers of both consolidated and equity method subsidiaries)

=> Tokai Tokyo Securities per se ･････¥3.84 Trillion

Jointly run operations ･････ ¥0.45 Trillion

Total ¥4.29 Trillion

ROE：10%

=> 4.1% (Annualized result as of the end of 2nd quarter offiscal 2011 ending March 2010)

Assets under Custody：¥6 Trillion (Includes numbers of both consolidated and equity method subsidiaries)

=> Tokai Tokyo Securities per se ･････¥3.84 Trillion

Jointly run operations ･････ ¥0.45 Trillion

Total ¥4.29 Trillion

ROE：10%

=> 4.1% (Annualized result as of the end of 2nd quarter offiscal 2011 ending March 2010)

29

2. Our focuses for the 2nd fiscal half of 2011 and after(1) Growth Potential

“Blue Ocean Strategy” and further pursuit of M&As and alliances 　　　　　　

Penetration into Asian market

“Blue Ocean Strategy” and further pursuit of M&As and alliances 　　　　　　

Penetration into Asian market

30

Customers

Under Multi-Channeled Support Service, we make available three different transaction points of contact for customers and those are (i) agents at conventional operating branches, (ii) Internet and (iii) Customer Support Center, all of which are dedicated to help customers for no hustle transactions with us.

Under Multi-Channeled Support Service, we make available three different transaction points of contact for customers and those are (i) agents at conventional operating branches, (ii) Internet and (iii) Customer Support Center, all of which are dedicated to help customers for no hustle transactions with us.

Operating Branches(Customer Agents at Counter) Internet Customer Support Center

2. Our focuses for the 2nd fiscal half of 2011 and after(2) Productivity Booster by making the best use of Multi-channeled Support Service

31

2. Our focuses for the 2nd fiscal half of 2011 and after(3) Promote community focus and customer loyalty

Marketing activities in Mikawa Region in Aichi-Ken

Solving the misconduct matter and thorough permeation of “Discipline Culture” within our company

Marketing activities in Mikawa Region in Aichi-Ken

Solving the misconduct matter and thorough permeation of “Discipline Culture” within our company

32

IV. References

33

Analysis of Consolidated Results

34

Overview of Financial Results (Consolidated)

(Million yen)FY2010

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H08.4.108.6.30

08.7.108.9.30

08.10.108.12.31

09.1.109.3.31

09.4.109.6.30

09.7.109.9.30

09.10.109.12.31

10.1.110.3.31

10.4.110.6.30

10.7.110.9.30

10.4.110.9.30

FY20092H＝100

FY20091H＝100

Total Revenues 14,819 10,007 9,025 9,774 15,180 14,944 14,426 13,948 13,843 11,344 25,188 89 84 SG&A Expenses 11,660 10,492 10,832 9,565 11,799 11,562 11,413 11,848 12,008 11,423 23,406 101 100　 (Total Revenues ＝100） 79 105 120 98 78 77 79 85 87 101 93Operating Income 2,615 -1,111 -2,267 -138 3,040 3,040 2,663 1,756 1,381 -413 993 22 16Ordinary Income 2,772 -976 -2,129 -230 3,362 3,384 2,997 2,234 1,922 -203 1,744 33 26　 (Total Revenues ＝100） 19 - - - 22 23 21 16 14 - 7Income Before Tax 3,345 -201 -359 -345 3,376 3,173 2,955 2,274 1,668 -273 1,395 27 21　 (Total Revenues ＝100） 23 - - - 22 21 20 16 12 - 6Net Income 2,002 44 805 -370 1,997 1,768 1,718 1,675 2,580 -238 2,342 69 62　 (Total Revenues ＝100） 14 0 9 - 13 12 12 12 19 - 9 Income Tax - current & deferred 1,363 -239 -1,171 29 1,380 1,401 1,236 600 -916 -37 -954 - -

Year onYear

Comparison withprevious 2H

FY2008 FY2009 FY2010

-5,000

0

5,000

10,000

15,000

20,000

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

FY2008 FY2009 FY2010

Total Revenues, Ordinary Income

-1,500

0

1,500

3,000

4,500

6,000

Income before Tax, Net Income

Total RevenuesOrdinary IncomeIncome Before TaxNet Income

(Million yen) (Million yen)

35

Total Revenues (Consolidated)

(Million yen)

FY2010 Comparison withprevious 2H

Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Fees and Commissions 9,108 5,787 5,389 4,660 7,508 7,843 7,501 6,819 7,240 5,207 12,447 87 81Trading Profit and Loss 4,830 3,405 3,114 4,646 7,084 6,499 6,211 6,462 5,764 5,390 11,154 88 82Interest and Dividend Income 880 815 521 467 588 601 713 667 839 747 1,586 115 133Total Operating Revenues 14,819 10,007 9,025 9,774 15,180 14,944 14,426 13,948 13,843 11,344 25,188 89 84

FY2008 FY2009 FY2010

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

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

FY2008 FY2009 FY2010

(Million yen)


Breakdown

61 58 6048 49 52 52 49 52

46

33 34 3548 47 43 43 46 42

48

6 8 4 5 5 6 7456

0%

20%

40%

60%

80%

100%

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

FY2008 FY2009 FY2010


36

Commissions (Consolidated)

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Brokerage Commissions 4,434 2,408 2,580 2,112 3,579 2,626 1,846 2,110 2,092 1,313 3,405 86 55Underwriting and Sales 41 66 62 36 43 28 111 132 74 49 123 51 172Subscription and Distribution 1,971 1,235 1,064 1,233 2,563 3,671 4,094 3,254 3,621 2,397 6,019 82 97Other Commissions 2,662 2,076 1,682 1,278 1,320 1,517 1,448 1,321 1,451 1,447 2,898 105 102Fees and Commissions 9,108 5,787 5,389 4,660 7,508 7,843 7,501 6,819 7,240 5,207 12,447 87 81

FY2008 FY2010FY2009

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

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

FY2008 FY2009 FY2010

(Million yen)Other CommissionsSubscription and DistributionUnderwriting and SalesBrokerage Commissions

Breakdown

3325 31 29 25

1

2221

20 2634

4755

48 5046

2936 31 27

18 19 19 19 2028

49 4248

4548

11

11

0

121

0

0%

20%

40%

60%

80%

100%

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

FY2008 FY2009 FY2010

Other CommissionsSubscription and DistributionUnderwriting and SalesBrokerage Commissions

37

Income by Product (Consolidated)

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Stocks (commissions) 4,480 2,461 2,618 2,106 3,598 2,725 1,936 2,228 2,128 1,307 3,436 83 54Bonds (commissions) 84 77 45 41 34 23 29 48 67 68 135 175 233Beneficiary Certificates (commissions) 3,520 2,654 1,952 1,975 3,378 4,554 5,044 4,336 4,731 3,501 8,233 88 104Others (commissions/insurance,etc.) 1,023 593 772 536 496 540 491 206 312 330 642 92 62Commissions 9,108 5,787 5,389 4,660 7,508 7,843 7,501 6,819 7,240 5,207 12,447 87 81

FY2010FY2008 FY2009

Revenue components

0

2,000

4,000

6,000

8,000

10,000

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

FY2008 FY2009 FY2010

(Million yen)

Others (commissions/insurance,etc.)

Beneficiary Certificates (commissions)Bonds (commissions)

Stocks (commissions)

Breakdown

4943 49 45 48

3526

33 29 25

11

11 0

0

01

11

39 46 36 4245

5867

64 65 67

11 10 14 12 7 7 7 3 4 6

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

FY2008 FY2009 FY2010

38

Trading Profit and Loss (Consolidated)

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Stocks 1,358 -827 -378 1,206 2,666 1,795 2,486 2,184 1,230 1,819 3,050 65 68(Stock Proprietary Trading) 836 -701 62 759 1,230 280 713 700 15 -3 11 1 1Bonds & Currencies 3,472 4,232 3,492 3,440 4,417 4,703 3,725 4,277 4,533 3,570 8,104 101 89(Bond Proprietary Trading) 27 -25 18 18 10 25 29 -14 30 50 81 540 231Trading Profit and Loss 4,830 3,405 3,114 4,646 7,084 6,499 6,211 6,462 5,764 5,390 11,154 88 82

FY2010FY2008 FY2009

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

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

FY2008 FY2009 FY2010

(Million yen)Stocks Bonds & Currencies Trading Profit and Loss

39

Selling, General and Administrative Expenses (Consolidated)

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Trading-related expenses 1,737 1,816 1,729 1,333 1,670 1,644 1,734 2,704 2,385 1,981 4,366 98 132Personnel expenses 6,146 4,913 4,885 4,516 6,220 6,057 5,802 6,001 5,685 5,607 11,293 96 92Occupancy and rental 1,481 1,522 1,792 1,112 1,457 1,432 1,379 1,616 1,515 1,553 3,068 102 106Office expenses 1,243 1,214 1,358 1,599 1,332 1,345 1,324 305 1,214 1,233 2,447 150 91Depreciation expenses 555 592 617 690 651 666 671 748 636 653 1,290 91 98Others 497 432 449 312 466 415 501 470 571 395 940 100 107Total SG&A expenses 11,660 10,492 10,832 9,565 11,799 11,562 11,413 11,848 12,008 11,423 23,406 101 100

FY2010FY2009FY2008

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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

FY2008 FY2009 FY2010

(Million yen)

OthersDepreciation expensesOffice expensesOccupancy and rentalPersonnel expensesTrading-related expenses

40

Indicators (Consolidated)

FY20101Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H

EPS (yen) 7.54 0.17 3.04 -1.40 7.53 6.66 6.17 5.97 9.23 -0.85 8.38BPS (yen) 400.26 398.68 395.06 391.97 398.98 404.39 399.83 406.92 405.59 403.45 403.45ROE (%) 7.5 0.2 3.1 - 7.5 6.6 6.2 5.9 9.1 - 4.2Dividend per share (yen) - 5.00 - 2.50 - 6.00 - 9.00 - 4.00 4.00*ROE is annualized

FY2008 FY2010FY2009

-5.00

0.00

5.00

10.00

15.00

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

FY2008 FY2009 FY2010

-5.0

0.0

5.0

10.0

15.0EPS (yen)ROE (%)

(yen) (%)

41

Overview of Tokai Tokyo Securities

42

Capital Adequacy Ratio

(Million yen)Q on Q Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY20101Q＝100

FY20092Q＝100

412.5 429.3 448.0 369.5 415.0 429.7 443.8 388.2 392.3 389.3 99 91

73,751 70,752 68,802 60,860 66,336 69,446 71,365 67,881 69,603 70,300 101 10117,876 16,479 15,355 16,469 15,981 16,159 16,080 17,481 17,738 18,056 102 112

Market Risk Amount 4,661 3,195 3,030 3,722 4,352 3,799 4,111 5,285 4,194 4,733 113 125Customer Risk Amount 2,037 2,012 1,726 2,173 1,595 2,061 1,844 1,679 1,980 1,803 91 87Basic Risk Amount 11,176 11,272 10,598 10,573 10,034 10,298 10,124 10,516 11,563 11,518 100 112

Risk amount

Capital Adequacy Ratio (%)

Net Capital

FY2010FY2008 FY2009

(Million yen)

0

15,000

30,000

45,000

60,000

75,000

90,000

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

FY2008 FY2009 FY2010

200.0

250.0

300.0

350.0

400.0

450.0

500.0（％）

Net CapitalRisk amountCapital Adequacy Ratio (%)

43

Assets under Custody

(100 million yen)Q on Q Y on Y

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY20101Q＝100

FY20092Q＝100

Stocks 20,916 18,192 14,910 13,973 16,887 16,439 16,165 17,383 15,336 15,030 98 91Bonds 9,793 9,988 8,907 8,866 9,631 9,115 9,036 8,925 10,096 10,420 103 114Investment Trusts 10,333 8,775 6,133 5,978 6,852 7,502 8,228 8,470 11,584 12,020 104 160Others 160 155 139 132 143 143 130 160 131 135 103 94Total 41,203 37,112 30,090 28,951 33,514 33,200 33,560 34,940 37,149 37,605 101 113

FY2009FY2008 FY2010

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

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

FY2008 FY2009 FY2010

(100 million yen)

OthersInvestment TrustsBondsStocks

Breakdown of Assets uner Custody

51 49 50 48 50 50 48 5041 40

24 27 30 31 29 27 27 2627 28

25 24 20 21 20 23 25 2431 32

0 0 0 0 0 0 0 0 0 0

0%

20%

40%

60%

80%

100%

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

FY2008 FY2009 FY2010

Stocks Bonds Investment Trusts Others

44

Net Inflow of Cash and Securities (Individuals)


(Million yen)FY2010

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

Inflow of Cash 82,945 74,180 91,278 49,341 50,543 50,836 54,503 50,612 66,768 56,019 122,787Outflow of Cash -56,551 -55,817 -49,242 -32,446 -38,351 -41,296 -43,868 -38,323 -48,003 -39,989 -87,992Net Inflow of Cash 26,394 18,363 42,037 16,895 12,192 9,539 10,634 12,289 18,765 16,029 34,795Inflow of Securities 20,341 27,923 25,752 3,139 6,355 5,091 3,003 4,815 7,134 3,180 10,314Outflow of Securities -23,068 -4,338 -5,569 -1,781 -3,419 -1,862 -3,840 -3,060 -3,937 -2,540 -6,477Net Inflow of Securities -2,727 23,586 20,183 1,357 2,936 3,229 -837 1,755 3,196 640 3,838Net Inflow of Cash and Securities 23,668 41,949 62,220 18,253 15,128 12,768 9,797 14,043 21,962 16,670 38,632

FY2008 FY2009 FY2010

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

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

FY2008 FY2009 FY2010

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000 Inflow of CashOutflow of CashInflow of SecuritiesOutflow of SecuritiesNet Inflow of CashNet Inflow of SecuritiesNet Inflow of Cash and Securities

(Millino yen) (Million yen)

45

Investment Trust

Sales and Assets under Custody


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000(Million yen)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000(Million yen)

SalesAssets under Custody

Sales 94,166 56,731 42,513 51,014 89,458 129,671 177,224 120,622 132,302 90,244

Assets under Custody 1,033,308 877,554 613,384 597,866 685,209 750,211 822,808 847,051 1,158,489 1,202,023

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

FY2008 FY2009 FY2010

Sales Assets under Custody

(Million yen)


Year onYear

1H FY20092H＝100

FY20091H＝100

Sales 222,546 75 102

46

Investment Trust

Agency CommissionsSales Commissions


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500(Million yen)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Sales CommissionsSales Commission Rate

Sales Commissions 1,908 1,202 1,040 1,202 2,526 3,603 4,003 3,115 3,532 2,295

Sales Commission Rate 2.1% 2.3% 2.6% 2.4% 2.8% 2.8% 2.3% 2.6% 2.7% 2.5%

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

FY2008 FY2009 FY2010

0

200

400

600

800

1,000

1,200

1,400

1,600(Million yen)

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

Agency CommissionsAgency Commission Rate

Agency Commissions 1,510 1,372 845 698 776 850 907 915 1,067 1,057

Agency Commission Rate 0.56% 0.56% 0.52% 0.47% 0.47% 0.46% 0.46% 0.45% 0.42% 0.36%

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

FY2008 FY2009 FY2010

(Million yen)


Year onYear

1H FY20092H＝100

FY20091H＝100

Sales Commissions 5,826 82 95

(Million yen)


Year onYear

1H FY20092H＝100

FY20091H＝100

Agency Commissions 2,124 117 131

47

Sales of Foreign Currency Bonds and Structured Bonds


(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Bonds in foreign currencies 39,220 57,325 37,090 31,354 18,633 21,396 23,460 28,546 25,973 24,651 50,624 97 126 US dollar 2,987 2,492 905 153 330 706 224 1,177 1,379 141 1,520 108 147 Australian dollar 8,646 9,498 4,875 4,298 188 3,698 2,669 4,425 6,637 15,803 22,440 316 577 New Zealand dollar 4,593 2,880 6,219 968 6,879 7,084 4,279 5,264 3,051 399 3,450 36 25 Euro 517 2,128 24 2 1 633 62 13 66 1 67 89 11 Canadian Dollar 14 1 - - British Pound 21 5 - - South African Rand 22,442 40,325 25,067 25,933 11,230 4,822 11,184 819 1,984 3,065 5,049 42 31 Turkish Lira 4,453 2,423 - - Brasilian Real 2,619 16,848 12,856 5,242 18,098 93 -Structured bonds 47,988 31,172 21,175 24,474 38,251 35,245 31,057 40,128 42,080 52,481 94,561 133 129 Interest rate and foreign exchange-linked 2,909 4,429 4,208 5,117 3,792 3,711 4,078 12,373 8,478 30,147 38,625 235 515

Interest rate and foreign exchange-linked, publicly offered 3,156 - -

Equity-linked 24,550 17,975 10,044 11,498 25,010 22,960 18,735 23,061 25,903 11,764 37,667 90 79 Equity-linked, publicly offered 20,529 8,768 6,923 4,703 9,449 8,574 8,244 4,694 7,699 10,570 18,269 141 101Total sales 87,208 88,498 58,265 55,828 56,884 56,641 54,517 68,674 68,053 77,132 145,185 118 128

FY2009 FY2010FY2008

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

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

FY2008 FY2009 FY2010

Bonds in foreign currenciesStructured bondsTotal sales

(Million yen)

48

Foreign Stocks


Revenues from foreign stocks

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

375 81 134 311 1,138 1,318 1,612 1,264 1,206 1,808

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

FY2008 FY2009 FY2010

(Million yen)

(Million yen)


Year onYear

1H FY20092H＝100

FY20091H＝100

Revenues from foreign stocks 3,014 105 123

49

Other Products

Structured Bonds

Insurance


Insurance commissions

88 92 69 68 83 106 92 118 107 11919

706

311282 260

159 6845

712

173120329813997

803

412364 336

251206

157220

140131

0

100

200

300

400

500

600

700

800

900

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

FY2008 FY2009 FY2010

Variable insuranceCasualty insuranceLife insuranceInsurance total

(Million yen)

Revenues related to structured bonds

1,088

682798

1,3561,268

1,168

1,4091,568

924

1,615

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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

FY2008 FY2009 FY2010

(Million yen)

(Million yen)

FY2010Comparison with

previous 2H Year on Year

1H FY20092H＝100

FY20091H＝100

Life insurance 226 108 120Casualty insurance 36 70 88Variable insurance 9 8 4Insurance total 271 72 59

(Million yen)


Year onYear

1H FY20092H＝100

FY20091H＝100

Revenues related to structured bonds 2,492 97 95

50

Business Overview by Customer Segment

* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.Retail includes the Retail Business Unit, the Main Office Sales Unit, and the Toyota Business Unit (excl. corporate customer segment)Investment Banking includes the Investment Banking Business Unit, Main Office Corporate Sales Dept., and Toyota Corporate Client Dept.

　(Tokai Tokyo Securities shifted from the internal company systemto the business unit system in April 2010.)

Total Revenue (Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

11,011 7,916 6,664 6,432 10,021 10,349 9,939 9,155 9,736 7,784 17,520 92 86% 78 83 80 69 69 72 70 67 72 69 70

3,088 1,638 1,620 2,866 4,566 4,083 4,161 4,501 3,976 3,460 7,435 86 86% 22 17 20 31 31 28 30 33 28 31 30

FY2009

Retail

Investment Banking

FY2008 FY2010

Revenues by Cutomer Segment

Retail69%

Dealing0%

InvestmentBanking

31%

Others30%

Number of Employeesby Business Unit

Retail82%

324

1,482

InvestmentBanking18%

Assets under Custodyby Business Unit (100 million yen)

Retail61%14,468

22,781

InvestmentBanking39%

51

Revenue by Product

0

2,000

4,000

6,000

8,000

10,000

12,000

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

FY2008 FY2009 FY2010

(Million yen)

Other Instruments

Domestic Stocks

The relative weight of stocksand other instruments

36.3%

26.1%

33.4%

28.3%

31.9%

21.6%

15.2%

18.3%

16.7%

12.4%

63.7%

73.9%

66.6%

71.7%

68.1%

78.4%

84.8%

83.4%

81.7%

87.6%

0% 20% 40% 60% 80% 100%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY20

08FY

2009

FY20

10 Domestic StocksOther Instruments

Revenue by Product (Retail)

Revenue by product


(Million yen)

FY2010 Comparison withprevious 2H Year on Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Total Revenue 11,011 7,916 6,664 6,432 10,021 10,349 10,198 9,592 9,916 7,552 17,468 88 86

Domestic Stocks 3,998 2,063 2,229 1,820 3,194 2,234 1,554 1,754 1,651 935 2,586% 36.3% 26.1% 33.4% 28.3% 31.9% 21.6% 15.2% 18.3% 16.7% 12.4% 14.8%

7,012 5,852 4,435 4,611 6,827 8,114 8,643 7,838 8,265 6,617 14,882% 63.7% 73.9% 66.6% 71.7% 68.1% 78.4% 84.8% 81.7% 83.4% 87.6% 85.2%

Foreign Stocks 241 71 80 197 702 744 999 780 891 1,349 2,241 126 155

Bonds 20 22 15 5 5 6 13 13 17 25 42 161 380

Foreign Bonds 1,564 1,455 989 1,029 1,434 1,381 1,392 1,718 1,755 1,037 2,792 90 99

Investment Trusts 1,900 1,187 1,025 1,170 2,502 3,605 3,983 3,100 3,493 2,253 5,746 81 94Investment TrustsAgency

1,421 1,262 772 684 745 824 850 879 984 973 1,957 113 125

Foreign Exchange 786 1,230 1,054 1,064 1,042 1,150 1,115 967 886 684 1,570 75 72

Insurance 785 393 340 333 252 241 124 194 66 136 202 64 41

Others 201 229 155 126 141 159 167 188 171 161 331 93 110

FY2010

48

100

78

90

FY2009FY2008

Other Instruments

52

Revenue by Region


Assets under Custody by Region


Revenue and Number of Accounts Attained by Each Region (Retail)

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Eastern Japan 3,346 2,345 1,784 1,565 2,510 2,600 2,479 2,357 2,436 1,834 4,269% 29.5% 29.4% 27.2% 24.7% 25.1% 25.1% 24.9% 25.3% 25.2% 24.7% 25.0%

Central Japan 5,822 4,107 3,585 3,453 5,395 5,618 5,443 5,097 5,402 4,177 9,579% 51.4% 51.5% 54.6% 54.4% 54.0% 54.2% 54.8% 54.7% 55.9% 56.2% 56.0%

Western Japan 2,163 1,525 1,193 1,330 2,082 2,142 2,015 1,856 1,825 1,425 3,251% 19.1% 19.1% 18.2% 21.0% 20.8% 20.7% 20.3% 19.9% 18.9% 19.2% 19.0%

Total 11,331 7,977 6,562 6,348 9,987 10,360 9,938 9,309 9,663 7,436 17,099 89 84

84

87

77

FY2009

84

FY2008

88

91

FY2010

(Accounts)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Eastern Japan 122,053 122,224 94,499 93,716 93,514 93,946 93,604 93,342 122,015 121,757 121,757% 30.5% 30.5% 25.6% 24.9% 24.8% 24.8% 24.8% 24.8% 25.5% 25.5% 25.5%

Central Japan 201,845 205,586 210,319 210,523 210,890 212,432 211,937 211,437 277,251 277,541 277,541% 50.5% 51.3% 56.9% 55.9% 56.0% 56.2% 56.2% 56.3% 57.9% 58.2% 58.2%

Western Japan 76,081 72,993 72,962 72,570 72,335 71,945 71,435 70,982 79,713 77,579 77,579% 19.0% 18.2% 17.5% 19.3% 19.2% 19.0% 18.9% 18.9% 16.6% 16.3% 16.3%

Total 399,979 400,803 377,780 376,809 376,739 378,323 376,976 375,761 478,979 476,877 476,877 127 126

131

108

130 130

131

109

FY2009FY2008 FY2010

(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Eastern Japan 857,044 745,401 483,765 464,804 533,131 535,483 537,256 556,535 535,121 540,588 540,588% 29.7% 29.7% 24.7% 24.5% 24.3% 24.3% 24.3% 24.2% 23.8% 23.7% 23.7%

Central Japan 1,501,249 1,310,285 1,095,158 1,065,680 1,238,814 1,247,743 1,259,718 1,312,033 1,323,317 1,348,496 1,348,496% 52.0% 52.1% 56.0% 56.2% 56.6% 56.7% 56.9% 57.0% 58.9% 59.2% 59.2%

Western Japan 530,647 457,286 377,142 365,229 417,591 417,585 417,510 432,595 387,787 387,723 387,723% 18.4% 18.2% 19.3% 19.3% 19.1% 19.0% 18.9% 18.8% 17.3% 17.0% 17.0%

Total 2,888,940 2,512,972 1,956,065 1,895,713 2,189,537 2,200,811 2,214,484 2,301,163 2,246,225 2,276,807 2,276,807 99 103

108

9390

97

103

FY2009 FY2010

101

FY2008

Revenue by Region

0

2,000

4,000

6,000

8,000

10,000

12,000

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

FY2008 FY2009 FY2010

(Million yen) Western JapanCentral JapanEastern Japan


050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

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

FY2008 FY2009 FY2010

(Accounts)Western JapanCentral JapanEastern Japan

Assets under Custody by Region

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

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

FY2008 FY2009 FY2010

Western JapanCentral JapanEastern Japan

53* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.

Customer Distribution (Retail)

Customer DistributionNumber of Customers


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

High Wealth 2,156 1,604 1,033 957 1,281 1,293 1,310 1,420 1,159 1,167 1,167 82 90％ 0.5% 0.4% 0.3% 0.2% 0.3% 0.3% 0.3% 0.4% 0.2% 0.2% 0.2% - -

Wealth 17,027 13,732 9,118 8,839 11,208 11,368 11,622 12,397 10,521 10,687 10,687 86 94％ 4.1% 3.3% 2.4% 2.2% 2.9% 2.9% 3.0% 3.2% 2.1% 2.2% 2.2% - -

Middle 110,479 103,716 85,600 84,122 93,370 93,253 93,175 95,309 95,786 94,593 94,593 99 101％ 26.7% 25.0% 22.3% 20.7% 23.9% 23.8% 23.9% 24.5% 19.5% 19.8% 19.8% - -

General 284,257 295,796 287,957 313,380 284,666 285,963 284,114 279,153 383,963 371,430 371,430 133 130％ 68.7% 71.3% 75.0% 76.9% 72.9% 73.0% 72.8% 71.9% 78.1% 77.7% 77.7% - -

Total 413,919 414,848 383,708 407,298 390,525 391,877 390,221 388,279 491,429 477,877 477,877 123 122

FY2009 FY2010FY2008

Assets under Custody(Million yen)


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

High Wealth 442,933 327,882 211,663 200,146 261,490 264,094 266,932 286,991 242,321 247,037 247,037 86 94％ 15.1% 12.8% 10.8% 10.5% 11.8% 11.9% 11.9% 12.3% 10.9% 11.1% 11.1% - -

Wealth 814,973 651,252 431,501 415,755 529,310 536,750 549,047 588,021 497,451 504,814 504,814 86 94％ 27.7% 25.5% 22.0% 21.8% 23.9% 24.1% 24.5% 25.3% 22.3% 22.8% 22.8% - -

Middle 1,334,485 1,223,353 977,256 957,900 1,084,966 1,085,345 1,087,857 1,117,925 1,095,503 1,085,702 1,085,702 97 100％ 45.4% 47.8% 49.8% 50.1% 49.0% 48.8% 48.6% 48.1% 49.1% 48.9% 48.9% - -

General 344,591 356,392 340,265 337,314 339,495 338,014 333,775 331,669 393,852 380,995 380,995 115 113％ 11.7% 13.9% 17.4% 17.7% 15.3% 15.2% 14.9% 14.3% 17.7% 17.2% 17.2% - -

Total 2,936,981 2,558,879 1,960,684 1,911,115 2,215,260 2,224,203 2,237,611 2,324,605 2,229,128 2,218,547 2,218,547 95 100

FY2009 FY2010FY2008

Commissions(Million yen)


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

High Wealth 1,280 779 488 369 681 785 598 738 744 436 1,179 88 80％ 11.5% 9.7% 7.6% 5.5% 7.2% 7.4% 6.2% 7.5% 7.6% 5.9% 6.8% - -

Wealth 3,612 2,161 1,500 1,554 2,600 2,933 2,665 2,657 2,669 1,803 4,473 84 81％ 32.3% 27.0% 23.2% 23.3% 27.5% 27.8% 27.6% 26.9% 27.3% 24.2% 26.0% - -

Middle 5,359 4,115 3,536 3,600 5,108 5,718 5,343 5,331 5,272 4,177 9,448 89 87％ 48.0% 51.4% 54.7% 53.9% 54.1% 54.2% 55.3% 54.0% 53.9% 56.1% 54.8% - -

General 924 951 939 1,156 1,048 1,115 1,060 1,142 1,102 1,025 2,127 97 98％ 8.3% 11.9% 14.5% 17.3% 11.1% 10.6% 11.0% 11.6% 11.3% 13.8% 12.3% - -

Total 11,175 8,006 6,463 6,679 9,437 10,551 9,667 9,869 9,787 7,441 17,227 88 86

FY2009 FY2010FY2008

High Wealth: Holding over 100 million yen in assets under custody

Wealth: 30 million to 100 million yen

Middle: 5 million to 30 million yen

General: less than 5 million yen

Number of Customers

Wealth2.2%

High Wealth0.2%

General77.7%

Middle19.8%

Assets under Custody

Middle48.9%

Wealth22.8%

General17.2%

High Wealth11.1%

Commissions

Wealth24.2%

HighWealth5.9%

Middle56.1%

General13.8%


Revenue Trends in Investment Banking Business Unit

Revenues(Million yen)


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Investment Banking B.U. 3,088 1,638 1,620 2,866 4,566 4,083 4,161 4,501 3,838 3,222 7,060 82 82Corporate Assets Division 657 699 606 603 697 693 671 772 523 512 1,035 72 74Corporate Products Division 933 1,332 875 1,165 1,894 2,318 1,932 1,940 1,806 1,685 3,491 90 83Corporate Solutions Division 88 76 70 59 51 141 65 81 130 66 196 134 102Dealing Division 864 -726 81 779 1,242 306 744 685 46 46 92 6 6

Stock Proprietary Trading 836 -701 62 759 1,230 280 713 700 15 -3 12 1 1Bond Proprietary Trading 27 -25 18 18 10 25 29 -14 30 50 80 533 229

545 257 -13 258 680 622 747 1,021 1,331 911 2,242 127 172

FY2010FY2009FY2008

Others

(Million yen)

-1,000

-500

0

500

1,000

1,500

2,000

2,500

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

FY2008 FY2009 FY2010

Corporate Assets DivisionCorporate Products DivisionCorporate Solutions DivisionDealing DivisionStock Proprietary TradingBond Proprietary Trading


Revenues and Number of Accounts Attained by the Corporate Assets Division (Investment Banking B.U.)

Corporate Assets Division

Corporate accounts

Revenues(Million yen)


previous 2H

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

Corporate Assets Division 657 699 606 603 697 693 671 772 523 512 1,035 72Domestic stocks 207 197 177 166 172 158 156 171 151 121 272 83Bonds 303 324 294 295 440 436 365 388 315 308 623 83

168 126 244 187 331 294 217 261 211 187 398 83

Structured, exchangeable bonds 134 197 49 107 109 141 147 127 103 121 224 82Investment trusts 63 70 38 60 46 58 69 57 31 37 68 54Derivatives 47 58 19 9 10 6 16 70 12 35 47 55Others 35 47 76 61 27 32 63 84 13 9 22 15

FY2010FY2009FY2008

Government bonds,Corporate bonds, CB

7,000

7,500

8,000

8,500

9,000(Accounts)

7,527 7,575 7,768 7,801 7,888 8,003 7,998 8,138 8,740 8,828

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

FY2008 FY2009 FY2010


Revenue Trends in Corporate Solutions Division (Investment Banking B.U.)

Corporate Solutions Division(Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Underwriting 14 23 14 23 16 8 12 14 73 37 110 423 458Stocks 9 19 13 2 13 6 11 4 14 0 14 93 74Bonds 4 3 0 21 2 2 1 9 58 36 94 940 2,350

Other fees and commissions 73 52 56 35 35 133 52 67 57 29 86 72 51IPO consulting 21 30 17 16 11 15 13 14 13 11 24 89 92IR supporting 9 7 7 8 6 12 9 4 8 6 14 108 78M&A, other consulting 33 7 17 2 10 97 25 42 31 8 39 58 36Others 8 7 14 8 7 7 4 5 4 3 7 78 50

Division total 88 76 70 59 51 141 65 81 130 66 196 134 102

FY2010FY2009FY2008

Revenues by Category

0

20

40

60

80

100

120

140

160

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

FY2008 FY2009 FY2010

(Million yen)

Other fees and commissionsUnderwriting


Dealing Division

Earnings in Dealing Division (Investment Banking B.U.)

(Million yen)


previous 2HYear on

Year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1HFY20092H＝100

FY20091H＝100

Stock Proprietary Trading 836 -701 62 759 1,230 280 713 700 15 -3 12 1 1Bond Proprietary Trading 27 -25 18 18 10 25 29 -14 30 50 80 533 229Proprietary Trading Profit/Loss 864 -726 81 779 1,242 306 744 685 46 46 92 6 6

FY2010FY2009FY2008

-1,000

-500

0

500

1,000

1,500

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

FY2008 FY2009 FY2010

Stock Proprietary TradingBond Proprietary TradingProprietary Trading Profit/Loss

(Million yen)

58

Stock Trading Volume and Value(Million shares, Million yen)


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

2,107 1,573 1,051 1,626 2,728 2,213 1,919 1,753 1,622 1,682 3,304 90Dealing 1,238 1,075 399 968 1,595 1,466 1,331 1,145 1,066 1,249 2,315 94Brokerage 869 497 653 658 1,133 746 589 609 556 433 989 83

41% 32% 62% 40% 42% 34% 31% 35% 34% 26% 30% -

2,223,085 1,654,868 700,806 890,602 1,319,848 1,107,534 1,103,037 1,108,346 1,188,916 1,003,120 2,192,037 99Dealing 1,465,770 1,225,298 292,066 523,773 750,822 687,144 787,325 765,002 845,799 773,137 1,618,936 104Brokerage 757,315 429,570 408,740 366,829 569,026 420,390 315,712 343,344 343,117 229,983 573,100 87

34% 26% 58% 41% 43% 38% 29% 31% 29% 23% 26% -

4.83 4.49 3.66 3.00 2.98 3.23 2.88 3.14 3.42 2.77 3.13 52

Number of Shares

FY2008 FY2009 FY2010

Brokerage %

BrokerageCommissionper Share (yen)

Amount

Brokerage %

Number of Shares

0500

1,0001,5002,0002,5003,0003,500

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

FY2008 FY2009 FY2010

0%10%20%30%40%50%60%70%

BrokerageDealingBrokerage %

(Million shares) Amount

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

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

FY2008 FY2009 FY2010

0%10%20%30%40%50%60%70%

BrokerageDealingBrokerage %

(Million yen)

59

Underwriting, Subscription, and Distribution Volume & Value

(Million shares, Million yen)


Year onYear

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1H FY20092H＝100

FY20091H＝100

Stocks (Number of shares) 0 4 3 0 0 0 7 1 0 0 0 0 4Stocks (Amount) 576 2,410 1,447 128 1,004 436 3,258 2,978 576 379 955 15 66Bonds (Face value) 107,595 66,706 85,125 162,158 153,442 134,806 132,122 135,873 160,650 126,659 287,309 107 100

Commercial Paper and ForeignSecurities (Face value) －－－－－－－－－－－ - -

Stocks (Number of shares) － 4 3 0 0 1 7 1 0 1 1 17 82Stocks (Amount) 591 2,386 1,521 132 1,038 685 3,204 2,983 462 451 913 15 53Bonds (Face value) 116,637 78,126 103,859 147,131 154,516 137,969 136,410 141,454 163,564 122,701 286,265 103 98

Investment Trusts(Face value)

308,182 246,391 229,988 228,064 323,002 411,818 430,032 362,331 451,346 409,955 861,302 109 117

Commercial Paper and ForeignSecurities (Face value) －－－－－－－－－－－ - -

Subscription andD

istributionU

nderwriting

FY2010FY2009FY2008

60

Progress on AllianceYM Securities

Hamagin Tokai Tokyo Securities

Nishi-Nippon City Tokai Tokyo SecuritiesEstablished：Sept. 30, 2009 Shareholding structure：Nishinippon City Bank 60％, TTFH40％Comment: (1) Started operation with 3 branches on May 6, 2010, 2 of which share offices with bank branches and they are scheduled to open the 3rd branch as the shared office with bank branch in the 2nd half of fiscal 2010.(2) They plan on establishing 7- branch network by the end of fiscal 2011 and secure the operating base in Fukuoka-Ken.

Established：May 2, 2008 Shareholding structure：Bank of Yokohama 51％, TTFH49％Comment: (1) Subsequent to the opening of Atsugi Branch in August 2010, the one in Azamino and the other in Hiyoshi were newly added, completing the branch network of 12 offices 6 of which share their offices with bank branches. (2) The operating infrastructure that covers the entire Kanagawa-ken is now completed.

Established：July 3, 2007 Shareholding structure: Yamaguchi Financial Group 60％, TTFH40％Comment: (1) Achieved the start-up loss recovery just after 2 years and 11 months since the inception, quite an accelerated feat compared with the originally planned 5-year target (2) Now selling ¥30 Billion corporate bond issued by Yamaguchi Financial Group since October 2010

(September 30, 2010)Assets under custody

(Million yen)Accounts Branches Employees

231,841 32,348 13 147



177,982 33,812 10 196



40,185 7,371 3 69

61

Trend in Asset under Custody at Joint Venture Operation Entities

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

08/3/31 08/9/30 09/3/31 09/9/30 10/3/31 10/9/30

Nishi-Nippon CityTokai Tokyo SecuritiesHamagin Tokai Tokyo SecuritiesYM Securities

(100 million yen)

62

Productivity Enhancement of Young Employees

Follow-up Training Dedicated to Each Employee Layer （Acquisition of Product Knowledge and Skills specific to Each Product Area )The Olympic Competition among Young Employees （Semi Annual “Olympic Award” and Honor Lunch ）Organize the Project Team for Young Employee training （Plan and Execute Various Measures of Young Employee Training）Tutor Training （Learning how to train newcomers ）

Follow-up Training Dedicated to Each Employee Layer （Acquisition of Product Knowledge and Skills specific to Each Product Area )The Olympic Competition among Young Employees （Semi Annual “Olympic Award” and Honor Lunch ）Organize the Project Team for Young Employee training （Plan and Execute Various Measures of Young Employee Training）Tutor Training （Learning how to train newcomers ）

※Overall Picture of Educational and Training ProgramThe second stage of the Endeavor

to Premier-House

Hand-on Training at Operating Offices

Maximize the Effectof Various Training Program

HR Administration & Personnel Evaluation, Point Earning Incentive

HR Development

PubliclyAuthorizedQualification

4th year and beyond

1st Year 3rd Year2nd Year

Management Stage

Area of Competence

ProductExpertise

GeneralCompetence

GeneralCompetence

ProductExpertise

Focus and　PositionSpecifics

Cafeteria Training = Qualification Mileage Accumulation (Point Earning Program)

SectionChief

Candidate

NewlyAppointed

Section Chief

General　ManagerIn Charge of　

Sales & MarketingSection Chief

NewlyAppointed

General Manager

ExecutiveOfficers and

Directors

Inter-departmental

Transfer

Mid-careerPersonnel

OJTLeader

WeaknessOvercoming

AFPSecurities　BrokerInternal Supervisor

New EmployeeTraining For

Approximately２months

TT Learning(Correspondence Course, E-Learning) TT School 5-minute Quiz Acquisition of

Publicly Authorized License

Acquisition ofPublicly Authorized License5-minute QuizTT SchoolTT Learning

(Correspondence Course, E-Learning)

Follow-upTraining

①

Follow-upTraining

②

Specializing Investment Banking

GeneralLife

Insurance

SecuritiesBroker

GeneralLiability

Insurance

EquityBondSales

LifeInsuranceSpecialist

5-minute Quiz

Acquisition ofBasic Knowledge 2nd Year

Follow-upTraining

3nd YearFollow-upTraining

Acquisition ofBasic Knowledge

PubliclyAuthorizedQualification

4th year and beyond

1st Year 3rd Year2nd Year

Management Stage

Area of Competence

ProductExpertise

GeneralCompetence

GeneralCompetence

ProductExpertise

Focus and　PositionSpecifics

Cafeteria Training = Qualification Mileage Accumulation (Point Earning Program)

SectionChief

Candidate

NewlyAppointed

Section Chief

General　ManagerIn Charge of　

Sales & MarketingSection Chief

NewlyAppointed

General Manager

ExecutiveOfficers and

Directors

Inter-departmental

Transfer

Mid-careerPersonnel

OJTLeader

WeaknessOvercoming

AFPSecurities　BrokerInternal Supervisor

New EmployeeTraining For

Approximately２months

TT Learning(Correspondence Course, E-Learning) TT School 5-minute Quiz Acquisition of

Publicly Authorized License

Acquisition ofPublicly Authorized License5-minute QuizTT SchoolTT Learning

(Correspondence Course, E-Learning)

Follow-upTraining

①

Follow-upTraining

②

Specializing Investment Banking

GeneralLife

Insurance

SecuritiesBroker

GeneralLiability

Insurance

EquityBondSales

LifeInsuranceSpecialist

5-minute Quiz

Acquisition ofBasic Knowledge 2nd Year

Follow-upTraining

3nd YearFollow-upTraining

Acquisition ofBasic Knowledge

63

Seminar Activity in the 1st half of Fiscal 2010

Seminars in the 1st half of 2010Number ofseminars

Number ofparticipants drawn

Average number ofparticipants drawn

per seminarEast Japan Retail 213 2,690 13Central Japan Retail 517 6,112 12West Japan Retail 161 2,242 14Others 95Total 986 11,044 11

64


65


66

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.

General Planning Department, Tokai Tokyo Financial Holdings, Inc.TEL: 03-3517-8618　FAX: 03-3517-8314E-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

Result Review on 2nd Qtr of Fiscal 2010 that ends in March ... · 3. Attributes analysis of business foundation (1) Trend in Asset under Custody (2) Trend in each geographical growth