Corporate Profile & Business Strategy
March 2018
1
Contents
* Unless otherwise specified, the numerical data we quote here were all compiled as consolidated figures of the Tokai Tokyo Financial Holdings, Inc.
Company Overview
Business Results
New Management Plan “New Age’s Flag Bearer 5”
Supplementary Material
2
Corporate Profile
Company Name: Tokai Tokyo Financial Holdings, Inc. (TSE, NSE:8616)
Representative: Tateaki Ishida, President & CEO
Consolidated Net Assets: 172.9 billion yen
Client Assets under Custody
of Tokai Tokyo Securities: 4,870.3 billion yen
(Retail Client Assets: 2,809.1 billion yen)
Market Capitalization: 196.7 billion yen
Number of Employees:
Holding Company 184
Consolidated Basis: 3,427
Group company of the
Tokai Bank(b)
Group company of the
Nikko Securities (a)
Tokai Tokyo
Securities
Tokai Tokyo
Financial Holdings
was established
Apr. ‘09
Oct. ‘07
YM
Nov. ‘08
Hamagin
TT
May ‘10
Nishi-
Nippon
City TT
Oct. ‘12
Senshu
Ikeda TT
Apr. ‘10
Relocated HQ of TTSC
to Nagoya City
Apr. ‘10
TTSC merged with
Toyota Financial
Services Sec. Tokyo
Securities
Tokai
Maruman
Securities
Jan. ‘17
Hokuhoku
TT
Group History Current group configuration was formed in
October 2000 through merger between Tokyo
Securities and Tokai Maruman Securities
* Currently, (a) SMBC Nikko Securities, (b) Bank of Tokyo-Mitsubishi UFJ
Apr. ‘17
Tochigi Bank
invested in
Utsunomiya
Securities
March. ‘17
Acquired
ETERNAL
Apr. ‘17
Acquired
Takagi Sec.
Sep. ‘17
Acquired
Pinnacle
(As of December 31, 2017)
Company Overview
Profile and History
3
Individuals & Others20.7%
Financial Institutions
38.5%
Other Domestic
Institutions10.2%
Foreign Investors21.3%
Securities Houses2.6%
Treasury Stock6.7%
AUC and Shareholder Information
Major ShareholdersNo. of
shares (K)
Ownership
Ratio (%)
- "Schroders Group"(*) 18,200 7.55
1 Japan Trustee Services Bank, Ltd. (Trust Account) 12,875 4.58
2 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 12,016 4.28
3 The Master Trust Bank of Japan, Ltd. (Trust Account) 10,379 3.69
4 Mitsui Sumitomo Insurance Co., Ltd. 9,033 3.21
5 Toyota Financial Services Corporation 8,885 3.16
6 The Bank of Yokohama, Ltd. 7,014 2.50
7 Nippon Life Insurance Company 5,611 2.00
8 J. P. Morgan Chase Bank 385166 4,840 1.72
9 Sumitomo Mitsui Trust Bank, Limited 4,800 1.71
10 Meiji Yasuda Life Insurance Company 4,406 1.57
(As of September 30, 2017)
Distribution of Shareholders
* The data of the shareholder ranking No. 1 through 10 were identical in substance to what we had publicized for disclosure purpose. However, the Change Report Pertaining to the Report of Possession of Large Volume submitted on November 7, 2017 Schroder group show that their 4 companies altogether owned 7.55% of Tokai Tokyo Financial Holdings, Inc. as of October 31, 2017
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Sep-17
JV Securities Total
Takagi Securities
Tokai Tokyo Securities
(Billion Yen)
Asset Under Custody
Company Overview
4
Hokuhoku T
okai T
okyo S
ecuritie
s
Tokai T
okyo S
ecuritie
s (A
sia
)
Tokai T
okyo S
ecuritie
s E
uro
pe
Tokai T
okyo S
ecuritie
s (U
SA
)
Tokai T
okyo
Glo
bal In
vestm
ents
Tokai T
okyo In
vestm
ent M
anagem
ent S
ingapore
Kenanga In
vestm
ent B
ank (M
ala
ysia
)
YM
Securitie
s
Overseas Business Alliance
Group Structure
Consolidated Subsidiaries Equity Method Affiliates
Tokai T
okyo B
usin
ess S
erv
ice
Tokai T
okyo S
erv
ice
Tokai T
okyo W
ealth
Consultin
g
Tokai T
okyo In
vestm
ent
Tokai T
okyo
Asset M
anagem
ent
Takagi S
ecuritie
s
Tokai T
okyo R
esearc
h In
stitu
te
Tokai T
okyo A
cadem
y
Guota
i Junan S
ecuritie
s (C
hin
a)
Phillip
Securitie
s (S
ingapore
)
Firs
t Metro
Investm
ent C
orp
ora
tion (P
hilip
pin
es)
The B
ank o
f East A
sia
(Hong K
ong)
Stife
l Fin
ancia
l Corp
. (US
A)
Bualu
ang S
ecuritie
s (T
haila
nd)
Philip
Tokai T
okyo
Investm
ent M
anagem
ent
Ham
agin
Tokai T
okyo S
ecuritie
s
Nis
hi-N
ippon C
ity Tokai T
okyo S
ecuritie
s
Senshu Ik
eda T
okai T
okyo S
ecuritie
s
All N
ippon A
sset M
anagem
ent
Mira
e A
sset D
aew
oo S
ecuritie
s (K
ore
a)
* In April 2010, Tokai Tokyo Securities Co., Ltd. and Toyota Financial Services Securities Co., Ltd. merged.
Ete
rnal
Uts
unom
iya S
ecuritie
s
Ace S
ecuritie
s
Tokai T
okyo S
ecuritie
s*
Tokai Tokyo Financial Holdings, Inc. a holding company listed on TSE and NSE
as of December 31, 2017
Pin
nacle
Bao V
iet S
ecuritie
s (V
ietn
am
)
Company Overview
Group Structure
5
Alliance
& Platform
Solid Business
Base in
Chubu Area
Advanced
Business Model
Sound
Management
- Wealth Management (Orque d’or)
- Retail (MONEQUE)
- Market
(Foreign Stocks, Structured
Notes)
- Investment Banking (Debt, IPOs) - Outside Directors
- Company with an Audit
& Supervisory Committee
- 3 Defense Lines
- 6 Joint Ventures with Regional
Banks
- Brokers’ Broker Business
Chubu Area
- No.1 in Value of Shipment of
Manufactured Goods
- Linear Bullet Train
- Hydrogen Fuel Cell Vehicle
- Mitsubishi Regional Jet (MRJ)
Company Overview
Characteristics
6
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Operating Revenue(LHS)
Ordinary Income(LHS)
Net Income(RHS)
(
Recorded positive ordinary income non stop for 29 consecutive quarters
8,000
12,000
16,000
20,000
24,000
Financial Summary
¥11.16 billion gain of
negative goodwill by
acquiring Takagi Securities
Nikkei 225 (Yen) Financial Results [Quarterly] and Nikkei 225
Operating revenue,
Ordinary income
(Million Yen)
Net income
(Million Yen)
Company Overview
7
FYE
March 2016
FYE
March 2017
FYE
March 2018
Business Results
Major Initiatives and Project Progress Wealth Management
Asset Management Brokerage
Brokerage
Hokuhoku TT Sec
One Stop Channel Insurance
Ace Sec Brokerage
Brokerage
Takagi Sec
M&A Advisory
Utsunomiya Sec
8
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2007
/4
2008
/4
2009
/4
2010
/4
2011
/4
2012
/4
2013
/4
2014
/4
2015
/4
2016
/4
2017
/4
Tokai Tokyo
350,000
1,350,000
2,350,000
3,350,000
4,350,000
5,350,000
野村
大和
1.0
6.0
11.0
16.0
21.0
26.0
31.0200
7/4
200
8/4
200
9/4
201
0/4
201
1/4
201
2/4
201
3/4
201
4/4
201
5/4
201
6/4
201
7/4
対大和倍率
対野村倍率
Comparison Study
Nomura
Daiwa
Tokai Tokyo
Market Cap Multiple
Nomura/Tokai Tokyo
Daiwa/Tokai Tokyo
20
17
/10
(Million Yen)
Business Results
Market Cap Trend in comparison with Nomura and Daiwa
9
【FY2017 9 months Net Income】
CompanyAmounts
(million yen)Y on Y
1 Nomura *1 196,668 10.3%
2 Daiwa 73,998 (9.4%)
3 ◎ SMBC Nikko 49,534 88.3%
4 ◎ Mitsubishi UFJ 31,184 (13.7%)
5 ◎ Mizuho 24,059 (86.4%)
6 Tokai Tokyo 21,904 184.8%
7 Okasan 4,266 (46.6%)
8 Ichiyoshi 3,618 149.3%
9 IwaiCosmo 3,478 146.7%
10 Kyokuto 2,334 ▲40.3%
【FY2017 9 months Operating revenue】
CompanyAmounts
(million yen)Y on Y
1 Nomura *1 1,460,944 13.4%
2 Daiwa 527,140 17.1%
3 ◎ SMBC Nikko 292,800 16.9%
4 ◎ Mitsubishi UFJ 282,080 (1.9%)
5 ◎ Mizuho 279,213 (14.4%)
6 Tokai Tokyo 63,639 37.3%
7 Okasan 61,786 2.5%
8 ◎ SMBC Friend 23,599 (24.4%)
9 Ichiyoshi 19,750 30.8%
10 IwaiCosmo 15,398 31.8%
87.7
57.6
99.6
69.5 61.787.1
46.9
36.5
68.3
45.7
67.361.5
42.729.0
43.0
130.4
61.6 61.5
0
50
100
150
(Yen)
3.7
2.6
3.83.7
2.7 3.2
4.5
2.6
4.24.5
2.9
3.8
2.3
1.4
2.3
4.2
2.9
4.1
0
1
2
3
4
5
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2Q
(%)
Tokai Tokyo Nomura Daiwa
EPS
ROE
Dividend Yield
Financial Summary and Performance in Comparison with Peers
*EPS and ROE is annualized by multiplying 2 to actual semi-annual figures.
17.7
8.9
17.012.6
8.6
12.88.1
4.99.57.8 8.7 8.4
9.7
4.98.6
21.0
7.7 8.1
0
10
20
30
(%)
◎: Bank-affiliated companies
*1 US GAAP based
Note: Excluding online brokers
Tokai Tokyo Financial Holdings prepared the table
compiling from publicly disclosed data
Business Results
10
Overall Picture
“New Age’s Flag Bearer 5”
Further Strengthen Operating Base and Achieve Growth Pursuit Strategic Themes
Productivity Revolution
Growth by M&A
Asset management
Pension and insurance service
Banking service
Overseas market expansion
Expansion to Metropolis
New Management Plan “New Age’s Flag Bearer 5”
Organization
Defense
Mechanism
Humanity
Professionality
Market &
Investment
Bank
Great Platform
Orque
d’or
MONEQUE Matured
Unique
development of
retail strategy
11
Nomura
Mitsubishi UFJ Morgan
Daiwa
SMBC Nikko
Mizuho
Tokai Tokyo Financial Group
“New Age’s Flag Bearer 5”
New Management Plan “New Age’s Flag Bearer 5”
5 Giants
12
Aichi14%
Gifu2%
Mie4%
Shizuoka5%
Osaka Area
12%Others46%
Tokyo Area17%
2014
Value of Shipments of
Manufactured GoodsChubu
Area
25%
“Chubu Area” consists of four prefectures, Aichi, Mie, Gifu and Shizuoka.
“Tokyo Area” consists of Tokyo, Kanagawa, Saitama and Chiba.
“Osaka Area” consists of Osaka, Kyoto, Hyogo and Nara.
Ongoing 3 Big Projects in Chubu Area
Hydrogen
fuel cell vehicle
MRJ
Chuo
Shinkansen (※)
(※)operated by Superconducting Maglev System
Aichi has been No.1 Since 1977
Aichi has No.1 share in the 10
(out of 24) industries
・Transportation Equipment
(39%-Toyota, Suzuki, Yamaha Motor, Denso, Aishin, Mitsubishi Heavy
Industry)
・Production Machinery
(11%-YAMAZAKI MAZAK, Okuma)
・Business oriented Machinery
(16%-Brother Industries)
Supplementary Material
Solid Business Base in Chubu Area
“MONEQUE”
Pursue Unique Segment-Specific Strategy in Retail Operation
“Orque d’or”
Nagoya Tokyo Kansai After-death care service
IFA
Restructuring outlets
Integrated sales activity for
corporate and retail
Asset analysis
Sales activities at affiliates
Matured
Segment
Online brokers “Insurance Terrace”
(by ETERNAL) “Mutual Fund Counter”
(by Takagi Sec.) Sony Bank
FinTech
- MoneyForward
- KALAIS
- Life Plan Simulation
13
Supplementary Material
14
Top 20 Regional Banks (total deposits) (As of September 30, 2017)
Total Bank Deposits
49 Trillion Yen
★ : Banks that have subsidiary securities companies
※ Denotes Tokai Tokyo Financial Holdings’ alliance partners
Alliance with Regional Banks
Bank Name
Bank
Deposits
(Trillion Yen)
JV Name
Date of
Commencing
Operation
1 Concordia Financial Group 14.8 Hamagin Tokai Tokyo Sec Nov-2008
2 ★ Mebuki Financial Group 13.5
3 ★ Fukuoka Financial Group 13.2
4 ★ Chiba Bank 11.5
5 Hokuhoku Financial Group 10.7 Hokuhoku Tokai Tokyo Sec Jan-2017
6 ★ Shizuoka Bank 9.4
7 Yamaguchi Financial Group 8.6 YM Securities Sec Oct-2007
8 ★ Kyushu Financial Group 7.9
9 Nishi-Nippon Financial Holdings 7.7 Nishi-Nippon City Tokai Tokyo Sec May-2010
10 ★ The 77 Bank 7.2
11 ★ Hiroshima Bank 7.0
12 ★ Kyoto Bank 6.7
13 ★ Gunma Bank 6.4
14 ★ The Hachijuni Bank 6.4
15 ★ Chugoku Bank 6.1
16 The Juroku Bank 5.4
17 ★ The Toho Bank 5.0
18 ★ Iyo Bank 4.9
19 Senshu Ikeda Holdings 4.8 Senshu Ikeda Tokai Tokyo Sec Sep-2013
20 ★ Ogaki Kyoritsu Bank 4.8
- Tochigi Bank 2.6 Utsunomiya Sec Apr-2017
Supplementary Material
15
0
200
400
600
800
1,000
1,200
1,400
1H 2H 1H 2H 1H 2H 1H
FY2014 FY2015 FY2016 FY2017
Others
InvestmentTrusts
Foreign &StructuredBonds
DomesticBonds
ForeignStocks
DomesticStocks
(Billion Yen)
Income Contribution from JV Affiliates
Assets under Custody by Product
536
245
305
371
450
540538
642668
780841
884
963
1,0471,009
998
1,024
1,244
1,444
0
200
400
600
800
1,000
1,200
1,400
1,600
Mar
-08
Sep
-08
Mar
-09
Sep
-09
Mar
-10
Sep
-10
Mar
-11
Sep
-11
Mar
-12
Sep
-12
Mar
-13
Sep
-13
Mar
-14
Sep
-14
Mar
-15
Sep
-15
Mar
-16
Sep
-16
Mar
-17
Sep
-17
(Billion Yen)
Assets under Custody - from JVs (6 Entities)
0
5
10
15
20
25
30
35
40
45
50
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY20171H
Income and Other Benefits Realized from Transactions with JVs
Gain on Investments in Partnership
Proportion to Consolidated Ordinary Income
(%)(Million Yen)
Supplementary Material
Alliance with Regional Banks
16
Local banks
Hamagin
TT Sec.
Nishi-Nippon
City TT Sec.
Ikeda Senshu
TT Sec.
Securities
companies
Provided functions Strengthen functions New functions
Utsunomiya
Sec.
IFAs
Local financial
firms
YM Sec.
Hokuhoku
TT Sec.
FinTech
(IT・AI)
Information
Call
center
Investment
Bank
Security
brokerage Education Asset
management
Overseas Operation
Insurance
High-net-
worth
M&A
“Mutual Fund
Counter” (by
Takagi Sec.)
Consulting
Trust
bank
MONEQUE
Securities
companies
Platform alliances (53 entities as of Sep. 2017)
New Management Plan
Supplementary Material
17
Tokai Tokyo Securities :
68 operating outlets
Tokai
44 outlets
(35 in Aichi Pref.)
Kyushu
1 outlets
Chugoku/
Shikoku
4 outlets
Kinki
3 outlets
Koushin’etsu
2 outlets
Tohoku
1 outlets
Kanto
13 outlets
(8 in Tokyo)
Utsunomiya Securities
(6 operating outlets)
(7 operating outlets)
YM Securities
Nishi-Nippon City TT
(19 operating outlets)
(22 operating outlets)
Hamagin TT
(17 operating outlets)
Senshu Ikeda TT
(As of December 31, 2017)
(4 operating outlets)
Hokuhoku TT
Takagi Securities :
14 operating outlets
JV Securities :
75 operating outlets
ETERNAL
(Insurance Terrace 72 outlets)
Supplementary Material
Area Coverage [Brokerage Business]
Nationwide network
18
Headquarters
Overseas Subsidiary
Business Partnership
Mirae Asset Daewoo
Securities Guotai Junan Securities
First Metro Investment Corporation
Stifel Financial Corp.
Kenanga Investment Bank
Overseas Affiliate
Phillip Tokai Tokyo
Investment Management
Phillip Securities
Tokai Tokyo Financial Holdings
Tokai Tokyo Securities (Asia)
Tokai Tokyo Securities Europe
Tokai Tokyo Securities (USA)
Bao Viet Securities
Bank of East Asia
Business Partnership with Capital Injection
Tokai Tokyo Global Investments
Tokai Tokyo Investment
Management Singapore
(As of December 31, 2017)
Bualuang Securities
Supplementary Material
Overseas Network
19
Inquiries to be directed to:
Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co.,
Ltd. (former Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it over. The Group (Tokai Tokyo
Financial Group) at the same time shifted to a holding company system.
Effective the same date, the Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd. changed their
corporate names to Tokai Tokyo Financial Holdings, Inc., and Tokai Tokyo Securities Co., Ltd. respectively.
The result for the fiscal year ended on March 31, 2009 or any earlier date account for the operation of the
former Tokai Tokyo Securities Co., Ltd. under then existing organizational structure.
Corporate Communications Department
TEL: +81-3-3517-8618 FAX: +81-3-3517-8314
E-mail: [email protected]
This material is intended to provide information regarding the Company’s most recent operational result
and NOT to solicit investment in securities issued by the Company.