FACT BOOK [English] FACT BOOK | 日本証券業協会

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Securities Market in 2009

01 Securities Market in 2009

1

１ Economic Overview

Although the global economic slowdown trig-gered by the so-called Lehman Shock was hampered, iscal 2009 Corporate Proits (cur-rent profit) remained weak, rising ¥381.6 bil-lion year on year, to ¥35,843.9 bilbil-lion.

By industry category, profit declines were most notable in the manufacturing sector, such as in the electrical machinery, and infor-mation technology (IT) equipment, and trans-portation equipment industries.

The current profit to sales ratio edged up 0.4% from the previous iscal year, to 2.8%, as a result of corporate eforts to cut employment and other costs.

Note : The igures for current proit and current proit to sales ratio are preliminary report igures.

Refer to page 18▲

( uarterly) (%)

Note Data is year-on-year comparison. Source Cabinet Oice

Public Demand Real GDP Net Exports Private Demand 09 08 07 06 05

Real GDP Growth Rate

-10.0 -9.0 -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0 1.0 2.0 3.0 4.0 (FY)

(Trillion yen) (%)

Note: 1. The use of FY throughout this publication refers to a iscal year starting from April 1 of the year noted and ending March 31 of the next year. 2. The igures for current proit and current proit to sales ratio are

preliminary report igures. Source Ministry of Finance

0 10 20 30 40 50 60 09 08 07 06 05

Current Proits (left scale)

Current Proits to Sales Ratio (right scale)

1.0 1.5 2.0 2.5 3.0 3.5 4.0 09 08 07 06 05

Corporate Proﬁts (all industries, all scales of businesses)

In retrospect, the Japanese economy in 2009 experienced a severe recession in the wake of the global economic stagnation and financial uncer-tainty caused by the Lehman Shock of 2008.

The real gross domestic product (GDP) dropped 8.9% year on year in the irst quarter, with private demand falling a notable 5.4% from the irst quar-ter a year earlier.

Although there were some signs of the econo-my bottoming out in the second quarter, recovery was mild. As a result, real GDP for 2009 on an annual basis contracted 5.2% from 2008.

In contrast, net exports staged a more rapid re-covery, with exports to Asia expanding substan-tially and those to the United States and Europe also rebounding. As a result, net exports moved into the plus column in the fourth quarter of 2009.

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02 Securities Market in 2009

FACT BOOK

2010

After positing negative growth for six con-secutive years from 2000 to 2005 under de-lationary conditions, the Consumer Price Index (CPI) turned slightly positive in 2006 and had remained positive since. In 2009, however, amid an easing of the demand-supply balance, the CPI retreated 1.3% from 2008 in reaction to the soaring costs for petroleum products.

Similarly, the Corporate Goods Price Index (CGPI) fell sharply by 4.1% from a year earlier against a backdrop of declining prices for inter-national commodity and an easing of the de-mand-supply balance.

Refer to page 18▲

In 2009, employment conditions continued to sufer from the harsh business environment, with the unemployment rate hitting a record high of 5.6% in July. Although conditions then turned toward a mild recovery, on an annual ba-sis, the unemployment rate climbed 1.1 per-centage points, to 5.1%. Moreover, the job-of-fers to seekers ratio plummeted from last year’ s level, sinking to 0.48 times.

Among reasons given by job seekers for not being employed, “the desired type of work or job conditions are not available,” “even on an unconditional basis, work is not available,” and “I did not it into the required age bracket” in-creased.

Refer to page 18▲

(CY) (%)

Consumer Price (excluding fresh food) Corporate Goods Price (inal consumer goods)

Note: Data is annual average.

Source: Ministry of Internal Afairs and Communications, Bank of Japan 09 08

07 06

05

Consumer Price and Corporate Goods Price (year on year)

-5.0 -4.0 -1.0 0 1.0 2.0

(CY)

(%) (Ratio

(Times))

Note Data is annual average.

Source Ministry of Internal Afairs and Communications, Ministry of Health, Labour and Welfare 0.0

1.0 2.0 3.0 4.0 5.0 6.0

Unemployment Rate (left scale)

Job-ofers to Seekers Ratio (excluding new school graduates but including part-time workers, right scale)

0.0 0.2 0.4 0.6 0.8 1.0 1.2

09 08

07 06

05

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03

２ Stock Market

In 2009, deepening concerns over the global economic recession, inancial uncertainty, and other factors drove the Nikkei 225 Stock Aver-age down to ￥7,054.98 on March 10, 2009, its lowest point since the 1990 bursting of the inancial bubble.

The market then rebounded in reaction to the upswings in overseas stock markets, closing the year at ￥10,546.44.

The year-on-year increase of 16.6% in the in-dex was the first positive growth in three years.

The daily average stock trading value of the 1st Section of the Tokyo Stock Exchange increased for ive consecutive years during the period from 2003 to 2007. However, this trend reversed in 2008 with the igure continuing to fall in 2009, dropping to ¥1,517.2 billion.

One of the major factors behind the large contraction in the market was the global recession following the September 2008 Lehman Shock.

Refer to page 18▲

(CY) (Yen)

Source Nihon eizai Shimbun 0

5,000 10,000 15,000 20,000 25,000

09 08 07 06 05 04 03 02 01 00

Stock Price (Nikkei 225 Stock Average)

(CY) (Trillion yen)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

09 08 07 06 05 04 03 02 01 00

Daily Average Stock Trading Value of TSE (1st Section)

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04 Securities Market in 2009

FACT BOOK

2010

In 2009, equity inancing (paid-in capital in-crease) by publicly listed companies totaled ¥6,334.4 billion, expanding—substantially—for the irst time in four years.

Looking at issuing categories, public offer-ings increased ¥4,605.8 billion from last year, to ¥4,968.0 billion, while private placements (included preferred stocks, etc.) surged ¥249.1 billion year on year to ¥1,366.1 billion.

The backdrop to the many capital increases made by companies in 2009 included large-scale capital increases being made by major corporations to rebuild inancial positions dam-aged by performance deterioration caused by the inancial crisis and inancial institutions be-ing forced to strengthen their capital bases by tightening regulation.

Refer to page 19▲

In 2009, companies going public fell for the third consecutive year, dropping to 17 compa-nies—less than half of the 48 companies list-ing in 2008.

Total capital raised through IPOs also fell for the third year in a row, contracting 76.0%, to ¥33.8 billion.

Reasons behind these results include the sudden economic slowdown related deteriora-tion in financial performance of companies planning on listing and the continued slump in the stock market. In addition, there has been an increase in the number of companies that have decided there are less advantages to list-ing now that exchanges require listed compa-nies to introduce internal control systems and make disclosure reports on a quarterly basis.

Refer to page 19▲

(CY) (Trillion yen)

Public Oferings

Private Placements and Others

Rights Oferings 0 1 2 3 4 5 6 7 09 08 07 06 05 04 03 02 01 00

Equity Financing (paid-in capital increase) by Corporations

Note: 1. Initial public oferings made in conjunction with the listing of shares on exchanges before April 2007 are not included in the calculations. 2. Jasdaq Securities Exchange igures before 2004 are those of its precursor. NEO igures have been included since November 13, 2007. 3. Nasdaq Japan market igures are included for the period from

June 19, 2000 to December 15. 2002. Hercules market igures have been included since December 16, 2002. Source: Tokyo Stock Exchange, Osaka Securities Exchange, Jasdaq

Securities Exchange

(CY)

(Companies) (Trillion yen)

Note: 1. IPOs include public oferings by foreign companies when listing on Japanese markets.

2. Jasdaq Securities Exchange igures before 2004 are those of its precursor, the Jasdaq Market. Data for the Jasdaq market in 2004 covered only the period from January 1 to December 12. NEO igures have been included since November 13, 2007. Source: Japan Securities Dealers Association

0.0 0.2 0.4 0.6 0.8 1.0 09 08 07 06 05 04 03 02 01 00 0 50 100 150 200 250

IPO Amounts (right scale)

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05

３ Bond Market

In 2009, the short-term interest rate re-mained relatively stable around the 0.1% level as a result of the BOJ’s Policy Board and Mon-etary Policy Meeting deciding in December 2008 to lower the guiding target level to 0.1%.

The long-term interest rate edged up slightly on the strength of concerns over a worsening of the demand-supply balance because of the increased issuance of Japanese government bonds (JGBs) to fund economic stimulus mea-sures. However, the rate moved back down to 1.29 % in July because of the weakening of stock prices in reaction to deepening uncer-tainty about the direction of the global econo-my as relected in the worsening of unemploy-ment figures in the United States and other indicators.

In the following months, despite some tempo-rary upswings, the long-term interest rate gen-erally moved in a tight box around the 1.2% level up until the end of the year.

In 2009, the total OTC bond trading volume (including Repos) decreased 24.1 % year on year, to ¥8,563.3 trillion. Within this amount, the trading volume of JGBs dropped 23.9%, to ¥ 8,458.1 trillion. Super-term and long-term JGBs with long-terms of 10 years or more fell 42.3% from a year earlier, to ¥3,513.3 trillion.

Refer to page 19▲

(CY) (%)

Source: Bank of Japan, Japan Bond Trading Co., Ltd. 0.0

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

09 08

07 06

05

Call Rates (uncollateralized overnight, left scale)

Simple Yield of Newly Issued 10-year JGB (daily average, right scale)

1.0 1.3 1.6 1.9 2.2

Long-term and Short-term Interest Rates

(%)

(CY) (Hundred

trillion yen)

Note: Short-term JGBs are the total of inancial bills, treasury bills and Treasury Discount Bills (2009).

Source: Japan Securities Dealers Association 0

20 40 60 80 100 120 140

09 08 07 06 05 04 03 02 01 00

Short-term JGBs Others

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06 Securities Market in 2009

FACT BOOK

2010

In 2009, corporate debt inancing in the Jap-anese market jumped 20.4% from last year, to ¥11.7 trillion.

Corporate straight bond issuance expanded 25.9%, to ¥11.4 trillion. In contrast, issuance of convertible-type bonds with subscription rights sunk 56.0%, to less than ¥0.3 trillion.

Refer to page 20▲

In 2009, public and corporate bond issuance increased 13.6% from a year earlier, to ¥180.1 trillion. The major category of JGB issuance rose 15.8%, to ¥145.6 trillion. Among other is-suance categories, municipal bonds surged 26.6%, to ¥7.4 trillion; Government-guaran-teed bonds increased 9.5%, to ¥4.9 trillion; Fiscal Investment and Loan Program (FILP) agency bonds expanded 2.8%, to ¥4.5 trillion; and straight corporate bonds climbed 25.9%, to ¥11.4 trillion.

Looking at the composition of bond issuance by volume, the breakdown was as follows: JG-Bs, 80.9 % ; municipal bonds, 4.1 % ; govern-ment-guaranteed bonds, 2.7 % ; FILP agency bonds, 2.6 % ; and straight corporate bonds, 6.4%.

Refer to page 20▲

(CY) (Trillion yen)

0 2 4 6 8 10 12 14

09 08 07 06 05 04 03 02 01 00

Straight Corporate Bonds

Convertible-type Bonds with Subscription Rights

Corporate Bond Financing

Note: 1. Straight Corporate Bonds include asset backed bonds. 2. Following the revision of the Commercial Code in 2002,

Convertible Bonds were renamed Convertible-type Bonds with Subscription Rights.

Source: Japan Securities Dealers Association

Composition of Bond Issuance(2009)

Note: 1. Excluding private placement municipal bonds, private placement special bonds and private placement bonds.

2. Straight Corporate Bonds include asset backed bonds. Source: Japan Securities Dealers Association

JGBs Municipal Bonds Gov.-guaranteed Bonds

FILP Agency Bonds Straight Corporate Bonds Others

80.9 % 4.1

2.7 2.6

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07

４ Investment Trusts

At the end of 2009, the net assets of invest-ment trusts amounted to ¥95,142.8 billion, surging ¥13,472.7 billion and reversing the downturn of last year supported by the rebound in stock prices.

Looking at a breakdown of net assets, pub-licly offered investment trusts accounted for ¥ 61,455.1 billion, real-estate investment trusts contributed ¥4,020.1 billion, and private placement trusts totaled ¥29,667.6 billion.

Refer to page 21▲

Among publicly offered contractual-type se-curities investment trusts, net assets of stock investment trusts increased ¥9,401.5 billion compared with a year earlier, to ¥50,243.6 bil-lion.

Net assets of bond investment trusts also rose compared with last year, gaining ¥63.9 billion, to ¥8,755.4 billion.

Net assets of MMFs decreased ¥156.7 bil-lion year on year, to ¥2,456.0 bilbil-lion.

Refer to page 21▲

(End of CY) (Trillion yen)

Source: The Investment Trusts Association 0

20 40 60 80 100 120 140

09 08 07 06 05 04 03 02 01 00

Publicly Ofered Investment Trusts Private Placement Investment Trusts

Real-estate Investment Trusts

Net Assets Held in Investment Trusts

10 20 30 40 50 60 70 80 90

09 08 07 06 05 04 03 02 01 00

Stock Investment Trusts Money Management Funds

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08 Securities Market in 2009

FACT BOOK

2010

By type of publicly offered contractual-type stock investment trusts, net assets of unit-type trusts amounted to ¥1,522.9 billion, up ¥235.1 billion from the previous year.

Net assets held in open type trusts (exclud-ing ETFs) rebounded from last year’s decline, rising ¥9,400.2 billion, to ¥46,430.0 billion.

Contracting ¥233.8 billion, to ¥2,290.7 bil-lion, ETFs declined for the third consecutive year.

Refer to page 21▲

Among private placement contractual-type securities investment trusts, net assets of stock investment trusts recovered from last year ’s drop, expanding ¥ 4,008.3 billion, to ¥28,976.2 billion.

Net assets of bond investment trusts also rebounded from 2008, rising ¥103.5 billion, to ¥691.3 billion.

Refer to page 21▲

5 10 15 20 25 30 35 40

09 08 07 06 05 04 03 02 01 00

Stock Investment Trusts Bond Investment Trusts

Net Assets Held in Private Placement Contractual-type Investment Trusts

10 20 30 40 50 60 70

09 08 07 06 05 04 03 02 01 00

Unit Type ETFs

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09

５ Investor Trends

By type of institutional investors, life and non-life insurance companies and pension funds built up their securities portfolios. Com-pared with the previous fiscal year, they in-creased securities investments to ¥11,145.4 billion, up by ¥12,346.6 billion.

By category, the amount put into securities other than stocks swung upward to ¥6,173.4 billion after declining for four years running since iscal 2005.

Investments in stocks and other equities grew ¥291.1 billion year on year, to ¥1,983.4 billion. Investments in foreign securities also increased from a year earlier, rising to ¥2,988.6 billion—a net addition of ¥4,823.3 billion.

Refer to page 22▲

Individual investors reduced their invest-ments in securities, cutting back total securi-ties investment by ¥8,977.9 billion from iscal 2008, to minus ¥4,324.3 billion.

By category, investments in securities other than stocks fell dramatically from the more than ¥10 trillion recorded in 2007, dropping to minus ¥1,997.1 billion in iscal 2009.

Investment in stocks and other equities and investments in foreign securities also became negative in iscal 2009. Investment in stocks and other equities contracted ¥4,379.0 billion, to minus ¥2,091.5 billion, while investments in foreign securities declined ¥1,778.7 billion, to minus ¥235.7 billion.

Refer to page 22▲

Source: Bank of Japan (FY)

(Trillion yen)

Securities Other than Stocks Foreign Securities

Stocks and Other Equities

-5 0 5 10 15

09 08

07 06

05

Investments by Institutional Investors (Insurance Companies and Pension Funds)

Source: Bank of Japan (FY)

(Trillion yen)

Securities Other than Stocks Foreign Securities

Stocks and Other Equities

-5 0 5 10 15

09 08

07 06

05

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10 Securities Market in 2009

FACT BOOK

2010

Household financial assets at the end of March 2010 expanded approximately ¥43 tril-lion from a year earlier, to ¥1,452.8 triltril-lion.

Looking at the breakdown, stocks and other equities jumped ¥19.7 trillion, to ¥102.5 tril-lion, accounting for 7.1% of overall household inancial assets.

Investment trusts also increased, rising ¥7.4 trillion year on year, to ¥54.6 trillion.

Cash and deposits increased for the fourth consecutive year, advancing ¥11.8 trillion, to ¥798.2 trillion and accounting for 54.9% of overall household financial assets. These re-sults continue to indicate that households are giving priority to low risk, secure assets.

Refer to page 22▲

According to a stockholding survey of the is-cal year ended March 2010, partially due to the recovery in stock prices, all investment sectors had recovered, with total investment assets increasing ¥74.3 trillion, to ¥339.8 tril-lion.

Looking at year-on-year changes in the pro-portion of stockholdings, holdings by foreigners were up 2.5 % compared with fiscal 2008, while holdings by securities firms edged up 0.6% compared with a year earlier.

Refer to page 23▲

(End of FY) (%)

Note: Bonds include trust beneiciary rights. Source: Bank of Japan

0 10 20 30 40 50 60 70 80 90 100 09 08 07 06 05

Stocks and Other Equities Others Bonds

Insurance and Pension Reserves Cash and Deposits

Investment Trusts

Composition of Household Financial Assets

(End of FY) (%)

Note: 1. Governments include central and regional governments.

2. Financial Institutions do not include Pension Trusts, Investment Trusts and Insurance Companies. 3. Figures cover all exchange-listed stocks excluding foreign stocks.

4. Pension Trusts include investment assets of pension related funds of welfare pension funds, etc. for which banks operating trust business are appointed as trustee, but do not include those of public pension funds.

5. Treasury shares owned by each listed company are included under the investor type in which the companies are categorized.

6. In April 2010, the Jasdaq Securities Exchange merged with the Osaka Securities Exchange, with the Jasdaq and NEO markets becoming part of the OSE market. Consequently, starting with iscal 2009, the igures for the two markets (Jasdaq and NEO) have been combined.

In addition, retroactive adjustments have been made to available igures back to iscal 2004. Source: Tokyo Stock Exchange

0 10 20 30 40 50 60 70 80 90 100 09 08 07 06 05 Foreigners

Business Corporations Securities Firms Insurance Companies Financial Institutions Governments Individuals Investment Trusts Pension Trusts

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Member Firms

11 Member Firms

2

１ Member Firms

As of March 31, 2010, the number of regular members (securities irms) totaled 305, declin-ing by 16 from the previous year. The number of regular members decreased for the irst time in six years primarily because many members quit the association after ceasing their inan-cial instruments business.

Refer to page 24▲

The number of special members (banks and other registered inancial institutions) as of the end of March 2010 was 223, the same as last year. A breakdown by categories shows 6 city banks (unchanged), 14 trust banks (down by 1), 64 regional banks (unchanged), 42 second-tier regional banks (down by 2), 39 shinkin banks (up by 1), 12 life insurance companies (unchanged), 8 non-life insurance companies (unchanged) and 15 foreign banks (unchanged), and others.

Refer to page 24▲

(End of FY) Source: Japan Securities Dealers Association

-20 -15 -10 -5 0 5 10 15 20 25 09 08 07 06 05 04 03 02 01 00

Enrollment and Withdrawal (left scale) Regular Members (right scale)

240 250 260 270 280 290 300 310 320 330 09 08 07 06 05 04 03 02 01 00

Regular Members (Securities Firms)

(End of FY) Note: Shinkin Banks include Shinkin Banks and the Shinkin Central Bank. Source: Japan Securities Dealers Association

0 50 100 150 200 250 09 08 07 06 05 04 03 02 01 00

Second-tier Regional Banks

Other

Regional Banks Shinkin Banks

City Banks and Trust Banks

Non-Life Insurance Companies Life Insurance Companies

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Member Firms

12 Member Firms

FACT BOOK

2010

２ Regular Members’ Employees

３ Regular Members’ Domestic Offices

At December 31, 2009, the number of em-ployees of member firms declined by about 6,000 from last year, to 93,000. It was the irst time in six years that the number of em-ployees has dropped.

Refer to page 24▲

As of the end of March 2010, securities irms had 1,550 domestic branches, a decline of 25 branches from a year earlier. The number of business oices was 387, down 32 oices from the end of iscal 2008. The number of do-mestic oices including head oices decreased by 73 oices, to 2,242, falling for the irst time in six years.

Refer to page 25▲

(End of CY) Source: Japan Securities Dealers Association

75 80 85 90 95 100

09 08 07 06 05 04 03 02 01 00

Regular Members’

Employees

(Thousands)

0 500 1,000 1,500 2,000 2,500

09 08 07 06 05 04 03 02 01 00

Head Oice Branches Business Oices

Regular Members’

Domestic Oﬃces

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Member Firms

13

４ Securities Sales Representatives

５ Examinees of Securities Sales Representative

At December 31, 2009, there were approxi-mately 539,000 securities sales representa-tives, an increase of about 3,000 sales repre-sentatives year on year.

The number of securities sales representa-t i v e s b e l o n g i n g representa-t o s e c u r i representa-t i e s f i r m s w a s 77,000, declining about 4,000 from the previ-ous year. The number of securities sales repre-sentatives belonging to registered inancial in-stitutions was 360,000, an increase of about 5,000 sales representatives from a year earli-er. The number of securities sales representa-tives employed by inancial instruments inter-mediary service providers was 103,000, an increase about 1,000 from the previous year.

Looking at inancial instruments intermediary service providers by member category, inancial instruments intermediary service providers af-iliated with regular members had about 2,000 securities sales representatives, roughly the same as a year earlier. Those affiliated with special members had about 100,000 securi-ties sales representatives, up by 1,000 sales representatives from the prior year.

Refer to page 25▲

In 2009, the number of candidates taking the sales representative qualiication examina-tion for Class-1 Sales Representative was 61,000, approximately the same as in 2008, while the number of candidates taking the ex-amination for Class-2 Sales Representative was 75,000, down 12,000 candidates from last year. The number of candidates taking the examination for Special Member ’s Class-1 Sales Representative was 15,000, approxi-mately the same as a year earlier, while the number of candidates taking the examination for Special Member’s Class-2 Sales Represen-tative was 108,000, up 40,000 candidates from the previous iscal year.

Refer to page 25，26▲

(End of CY) 0 100 200 300 400 500 600 09 08 07 06 05 (Thousands)

Note: Excluding representatives of individual inancial instruments intermediary service providers.

Source: Japan Securities Dealers Association Special Members

Financial Instruments Intermediary Service Providers belonging to Special Members Regular Members

Financial Instruments Intermediary Service Providers belonging to Regular Members

Securities Sales Representatives

(Thousands) (%)

(CY)

Note: Class-1 Sales Representatives are authorized to engage in the duties of sales representative with the exception of Speciied OTC Derivatives Transactions, etc., while Class-2 Sales Representatives are authorized to engage in the duties of sales representative of Class-1 Sales Representatives with the exception of securities-related derivatives and bonds with options transactions and margin, etc. transactions. Source: Japan Securities Dealers Association

0 20 40 60 80 100 120 140 09 08 07 06 05 0 10 20 30 40 50 60 70

Examinees of Securities Sales Representative

Class-1 (Pass Rate) Class-2 (Pass Rate)

Special Member s Class-1 (Pass Rate) Special Member s Class-2 (Pass Rate) Class-1 (No. of Examinees)

Class-2 (No. of Examinees)

Special Member s Class-1 (No. of Examinees) Special Member s Class-2 (No. of Examinees)

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Performance of Securities Industry

14 Performance of Securities Industry

3

１ Operating Revenues of Member Securities Firms

２ Operating Expenses of Member Securities Firms

In the iscal year 2009 ended March 2010, total operating revenues of the overall industry (300 securities irms) amounted to ¥3,386.8 billion, increasing ¥230.4 billion, or 7.3%, from the previous year.

The increase can mainly be attributed to sub-stantial growth in operating revenues among major securities irms as a result of such fac-tors as the increase in trading gain resulting from the rebound in stock prices following the Lehman Shock; the robust sales of securities investment trusts, particularly those related to emerging countries; and the rush among corpo-ration to increase their capital bases.

Among operating revenues, Commissions rose ¥331.5 billion, or 18.4%, to ¥2,129.2 lion, while trading gain expanded ¥373.0 bil-lion, or 85.7%, to ¥808.1 billion. Financial rev-enues, however, declined ¥ 444.6 billion, or 51.6%, to ¥416.3 billion.

Refer to page 26▲

Operating expenses for the iscal year 2009 ended March 2010 decreased ¥425.6 billion, or 12.3%, to ¥3,041.6 billion. Among operat-ing expenses, employment cost rose ¥80.0 bil-lion, or 7.1%, to ¥1,202.3 billion. On the other hand, transaction expenses fell ¥21.3 billion, or 4.1 % , to ¥ 502.1 billion; real estate and equipment expenses contracted ¥12.9 billion, or 4.0%, to ¥306.9 billion; and data process-ing and office supplies expenses decreased ¥10.6 billion, or 2.5%, to ¥414.0 billion. As a whole, selling and general administrative costs were about the same as in iscal 2008, edging up ¥12.0 billion, or 0.4%, to ¥2,773.9 billion. Along with the dip in inancial revenue, inancial expenses also contracted, shedding ¥437.6 billion, or 62.1%, to ¥267.6 billion.

Refer to page 26▲

0 1.0 2.0 3.0 4.0 5.0 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3 01.3

Note: 1. Securities irms that were not in business as of the end of March each year are excluded. Among the 305 member securities irms as of the end of March 2010, 5 were not in business and excluded.

2. Figures for iscal 2009 ended March 2010 are on a preliminary report basis. Source: Japan Securities Dealers Association

Commission Trading Gain Financial Revenue Others

Operating Revenues of Member Securities Firms

(FY ended) (Trillion yen)

Note: 1. Securities irms that were not in business as of the end of March in each year are excluded.

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3 01.3

Real Estate Equipment Costs Others

Employment Cost Financial Expenses Transaction Expenses

Data Processing Oice Supplies Costs

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15

３ Current Proits/Losses of Member Securities Firms

４ Net Income/Loss and ROE of Member Securities Firms

In iscal 2009 ended March 2010, the indus-try staged a recovery from the current loss of ¥243.5 billion posted in fiscal 2008, to cur-rent proits of ¥338.1 billion.

Refer to page 27▲

The performance of member securities irms rebounded from a loss of ¥346.3 billion a year earlier, to record net income for the irst time since three years ago in fiscal 2006. Fiscal 2009 net income amounted to ¥211.5 billion. The Return on equity (ROE) was 3.2%, repre-senting an 8.2 percentage point improvement from the -5.0% recorded in the previous iscal year.

Refer to page 27▲

(FY ended) Note: 1. Securities irms that were not in business as of the end of March in each

year are excluded.

-0.5 0.0 0.5 1.0 1.5 2.0

10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3 01.3

Current Proﬁts/ Losses of Member Securities Firms

(Trillion yen)

(FY ended)

(Trillion yen) (%)

-1.0 -0.5 0.0 0.5 1.0 1.5 2.0

10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3 01.3

Net Income (left scale) ROE (right scale)

-10 -5 0 5 10 15 20

2. ROE is after-tax proits divided by average stockholders equity. 3. Figures for iscal 2009 ended March 2010 are on a preliminary report basis. Source: Japan Securities Dealers Association

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16 FACT BOOK

2010

５ Net Income/Loss by Type of Member Securities Firms

６ ROE by Type of Member Securities Firms

Looking at net income by firm category for the iscal year 2009 ended March 2010, each category recorded proits. Although major se-curities irms posted net income of ¥96.5 bil-lion, an increase of ¥206.5 billion from iscal 2008. Foreign securities irms registered net income of ¥17.1 billion, up ¥93.7 billion from last year. Other domestic securities irms also recorded profits, with net income improving ¥257.3 billion, to ¥97.7 billion.

Refer to page 27▲

Looking at ROE by irm category for the iscal year 2009 ended March 2010, the ROE of ma-jor securities firms was 3.7%, improving 8.1 percentage points from the previous fiscal year. The ROE of foreign securities firms re-couped 20.9 percentage points compared with iscal 2008, recovering to 4.3%, while the ROE of the rest of domestic securities firms in-creased 7.0 percentage points, to 2.9%.

Refer to page 27▲

(FY ended) (Billion yen)

Major Firms Foreign Firms Other Domestic Firms

2. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities Capital Markets Co. Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more.

-300 -200 -100 0 100 200 300 400 500

10.3 09.3

08.3 07.3

06.3

Net Income/ Loss by Type of Member Securities Firms

(FY ended)

Note: 1. Firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.

3. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities Capital Markets Co. Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more.

-20 -15 -10 -5 0 5 10 15 20 25 30 35 40

10.3 09.3

08.3 07.3

06.3 %

(19)

Statistical Data

4

Statistical Data

17

１ Economic Overview

Real GDP Growth Rate

Securities Market in 2009

（％）

Quarterly _{（Year-on-year comparison） Private Demand Public Demand}Real GDP Growth Rate _{Net Exports}

2000 １Q 3.3 2.7 0.0 0.7

２Q 2.5 1.6 0.2 0.7

３Q 3.0 2.3 0.2 0.6

４Q 2.6 2.8 －0.3 0.1

2001 １Q 2.0 2.2 0.6 －0.8

２Q 1.0 1.9 0.1 －1.0

３Q －0.3 0.6 0.1 －1.0

４Q －1.8 －1.6 0.3 －0.5

2002 １Q －1.9 －2.3 0.1 0.3

２Q －0.2 －1.3 0.2 0.9

３Q 1.5 0.5 0.3 0.7

４Q 1.7 0.9 －0.1 0.9

2003 １Q 1.3 1.1 －0.3 0.5

２Q 1.3 0.9 0.0 0.4

３Q 1.1 0.6 －0.3 0.8

４Q 1.9 1.4 －0.4 0.9

2004 １Q 4.2 2.7 0.3 1.2

２Q 3.2 2.5 －0.3 1.2

３Q 2.9 2.5 －0.3 0.7

４Q 0.8 0.8 －0.2 0.3

2005 １Q 1.1 1.7 －0.5 －0.1

２Q 2.0 2.2 －0.2 0.0

３Q 2.0 1.6 0.1 0.2

４Q 2.6 2.0 －0.3 0.9

2006 １Q 2.5 1.8 －0.3 1.0

２Q 2.0 1.4 0.0 0.7

３Q 1.6 0.9 －0.4 1.1

４Q 2.0 1.5 －0.2 0.7

2007 １Q 3.5 2.9 －0.3 0.9

２Q 2.3 1.3 0.0 1.0

３Q 1.7 0.7 －0.2 1.2

４Q 1.9 0.3 0.3 1.3

2008 １Q 1.2 －0.2 0.0 1.4

２Q －0.4 －1.3 －0.4 1.3

３Q －1.4 －1.5 －0.3 0.4

４Q －4.1 －1.1 －0.4 －2.6

2009 １Q －8.9 －5.4 0.0 －3.6

２Q －5.7 －4.3 0.7 －2.1

３Q －5.2 －4.6 0.7 －1.4

４Q －1.1 －3.8 0.7 2.0

(20)

Statistical Data

18 Statistical Data

FACT BOOK

2010

Corporate Proits (all industries, all scales of businesses)

Consumer Price and Corporate Goods Price（year on year）

Employment Conditions

FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Current Proits

(Trillion yen) 35.8 28.2 31.0 36.1 44.7 51.6 54.3 53.4 35.4 35.8

Current Proits to

Sales Ratio(%) 2.5 2.1 2.3 2.7 3.1 3.4 3.5 3.4 2.4 2.8

Note: 1. The use of FY throughout this publication refers to a iscal year starting from April 1 of the year noted and ending March 31 of the next year. 2. The igures for current proit and current proit to sales ratio are preliminary report igures.

Source: Ministry of Finance

（％）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Consumer Price

(excluding fresh food) －0.5 －0.8 －0.9 －0.3 －0.1 －0.1 0.1 0.0 1.5 －1.3

Corporate Goods Price

(inal consumer goods) －1.3 －1.4 －1.9 －1.6 －0.6 0.0 －0.2 0.2 1.0 －4.1

Note: Figures are annual average.

Source: Ministry of Internal Afairs and Communications, Bank of Japan

（Billion yen）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TSE 1st Section 978 812 775 971 1,316 1,874 2,598 3,001 2,320 1,517

Source: Tokyo Stock Exchange

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Unemployment Rate

（％） 4.7 5.0 5.4 5.2 4.7 4.4 4.1 3.9 4.0 5.1

Job-ofers to Seekers Ratio (excluding new school grad-uates but including part-time workers)(Ratio(Times))

0.59 0.59 0.54 0.64 0.83 0.95 1.06 1.04 0.88 0.48

Note: Figures are annual average (seasonally adjusted).

Source: Ministry of Internal Afairs and Communications, Ministry of Health, Labour and Welfare

２ Stock Market

(21)

Statistical Data

19 Newly Listed Companies and IPO Amounts

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Number of Newly

Listed Companies 203 168 123 118 171 157 181 117 48 17

IPO Amounts

（Billion yen） 941 368 147 347 421 402 594 176 43 33

Note: 1. IPOs include public oferings by foreign companies when listing on Japanese markets.

2. Jasdaq Securities Exchange igures before 2004 are those of its precursor, the Jasdaq Market. Data for the Jasdaq market in 2004 covered only the period from January 1 to December 12. NEO igures have been included since November 13, 2007.

（Trillion yen）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

JGBs 3,898.0 3,863.4 3,429.8 4,836.1 6,178.6 6,428.0 8,881.7 11,890.1 11,118.4 8,458.1 Short-term JGBs 2,621.9 2,243.2 1,489.9 1,933.6 2,179.2 1,817.5 1,872.1 2,554.9 2,680.6 3,083.9 Super-long-term,

Long-term,

Medium-term JGBs 1,275.8 1,619.9 1,939.6 2,902.2 3,999.1 4,610.5 7,009.5 9,335.3 8,437.8 5,374.0 Others 163.4 194.9 236.4 274.4 303.1 330.2 271.3 206.5 169.7 105.4 Total 4,061.1 4,058.0 3,665.9 5,110.2 6,481.4 6,758.2 9,153.0 12,096.7 11,288.1 8,563.3

Note: Short-term JGBs are the total of inancial bills, treasury bills and Treasury Discount Bills (2009). Source: Japan Securities Dealers Association

３ Bond Market

OTC Bond Trading (including Repos)

Equity Financing (paid-in capital increase) by Corporations

（Billion yen）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Public Oferings 796 1,372 223 653 994 884 1,659 511 362 4,968

Rights Oferings 10 32 － 2 11 4 3 9 0 0

Private Placements

and Others 1,223 847 1,566 2,808 2,150 2,509 1,220 1,626 1,116 1,366 Total 2,030 2,252 1,789 3,464 3,156 3,397 2,883 2,147 1,479 6,334

Note: 1. Initial public oferings made in conjunction with the listing of shares on exchanges before April 2007 are not included in the calculations. 2. Jasdaq Securities Exchange igures before 2004 are those of its precursor. NEO igures have been included since November 13, 2007.

3. Nasdaq Japan market igures are included for the period from June 19, 2000 to December 15. 2002. Hercules market igures have been included since December 16, 2002.

4. “－” indicates nil. “0” indicates less than 1 unit amount.

(22)

Statistical Data

20 FACT BOOK

2010

Amount of Bond Issuance

Composition of Bond Issuance, etc

（Billion yen）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

JGBs 105,996 133,970 147,831 154,686 175,268 186,155 175,684 140,455 125,752 145,660 Municipal Bonds 2,200 2,299 2,582 4,264 5,251 6,152 6,031 5,704 5,874 7,439

Gov.-guaranteed

Bonds 4,854 4,815 4,216 6,476 8,243 7,821 4,434 4,462 4,494 4,925 FILP Agency Bonds － 546 2,408 2,457 3,188 4,187 4,493 4,557 4,472 4,599

Straight Corporate

Bonds 8,276 8,609 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493 Others 27,237 23,630 17,013 15,749 15,460 15,760 13,425 12,151 8,824 5,997 Total 148,563 173,869 181,786 191,360 213,289 227,163 210,925 176,586 158,540 180,113

（％）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

JGBs 71.3 77.1 81.3 80.8 82.2 81.9 83.3 79.5 79.3 80.9 Municipal Bonds 1.5 1.3 1.4 2.2 2.5 2.7 2.9 3.2 3.7 4.1

Gov.-guaranteed

Bonds 3.3 2.8 2.3 3.4 3.9 3.4 2.1 2.5 2.8 2.7

FILP Agency Bonds － 0.3 1.3 1.3 1.5 1.8 2.1 2.6 2.8 2.6 Straight Corporate

Bonds 5.6 5.0 4.3 4.0 2.8 3.1 3.3 5.2 5.8 6.4

Others 18.3 13.6 9.4 8.2 7.2 6.9 6.4 6.9 5.6 3.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Note: 1. Excluding private placement municipal bonds. In 2008, the igures have excluded private placement municipal bonds, private placement special bonds, and private placement bonds.

2. Straight Corporate Bonds include asset backed bonds. 3. FILP Agency Bonds have been issued since 2001. Source: Japan Securities Dealers Association

Corporate Bond Financing

（Billion yen）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Straight

Corporate Bonds 8,276 8,609 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493

Convertible-type Bonds

with Subscription Rights 357 300 427 72 561 889 1,424 127 653 287

Bonds with

Subscription Rights －－－－－－－－－－

Total 8,633 8,909 8,163 7,800 6,440 7,977 8,282 9,385 9,778 11,780

Note: 1. Straight Corporate Bonds include Asset Backed Bonds 2. “－” indicates nil.

3. Following the revision of the Commercial Code in 2002, Convertible Bonds and Bonds with Warrants to Allocate New Shares were renamed Convertible-type Bonds with Subscription Rights and Bonds with Subscription Rights respectively.

(23)

Statistical Data

21

（Billion yen）

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Unit Type 373 617 697 1,161 1,799 1,945 1,875 1,876 1,287 1,522 Open Type

(excluding ETF) 14,236 13,398 13,165 17,216 22,522 35,180 49,665 61,029 37,029 46,430 ETF － 889 2,509 2,962 3,113 3,703 4,116 3,878 2,524 2,290 Total 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 50,243 Note: Calculation of “ETF” data started in July 2001.

Source: The Investment Trusts Association

Net Assets Held in Publicly Ofered Contractual-type Stock Investment Trusts

（Billion yen）

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Stock Investment

Trusts 3,185 5,040 6,469 9,388 14,646 24,723 32,186 35,406 24,967 28,976 Bond Investment

Trusts 507 1,066 911 995 949 919 800 623 587 691

Total 3,693 6,106 7,381 10,384 15,596 25,642 32,987 36,030 25,555 29,667 Source: The Investment Trusts Association

Net Assets Held in Private Placement Contractual-type Investment Trusts

（Billion yen）

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Publicly Ofered

Investment Trusts 49,399 45,280 36,016 37,435 40,996 55,347 68,927 79,760 52,146 61,455 Real-estate

Investment Trusts － 236 441 766 1,246 2,050 3,153 3,687 3,968 4,020 Private Placement

Investment Trusts 3,693 6,106 7,381 10,384 15,596 25,643 32,987 36,030 25,555 29,667 Total 53,092 51,624 43,839 48,586 57,839 83,040 105,067 119,478 81,670 95,142

Note: Listing of “Real-estate Investment Trusts” started in September 2001. Source: The Investment Trusts Association

（Billion yen）

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Stock Investment

Trusts 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 50,243 Bond Investment

Trusts 23,817 22,652 14,121 11,746 9,955 11,498 10,576 10,059 8,691 8,755 Money Management

Funds 10,971 7,722 5,521 4,350 3,606 3,020 2,693 2,917 2,612 2,456 Total 49,339 45,280 36,015 37,435 40,996 55,347 68,927 79,760 52,146 61,455 Source: The Investment Trusts Association

４ Investment Trust

Net Assets Held in Investment Trusts

(24)

Statistical Data

22 FACT BOOK

2010

（Billion yen）

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cash and Deposits 751,429 765,432 765,661 772,284 772,492 768,648 769,074 775,366 786,445 798,202 Bonds 48,116 41,834 34,580 32,258 37,274 40,395 43,249 44,509 43,156 42,222 Stocks and Other

Equities 107,437 85,389 72,108 117,500 133,573 197,340 200,397 119,190 82,824 102,515 Investment Trusts 33,922 30,434 27,999 33,047 36,584 52,166 64,717 63,046 47,243 54,625

Insurance and

Pension Reserves 377,624 379,042 376,970 377,497 382,243 391,163 400,558 402,641 393,527 392,737 Others 70,265 69,004 79,450 75,898 64,942 66,898 65,211 60,133 55,709 62,450 Total 1,388,794 1,371,138 1,356,771 1,408,487 1,427,110 1,516,614 1,543,181 1,464,887 1,408,906 1,452,751

Household Financial Assets

（％）

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cash and Deposits 54.1 55.8 56.4 54.8 54.1 50.7 49.8 52.9 55.8 54.9 Bonds 3.5 3.1 2.5 2.3 2.6 2.7 2.8 3.0 3.1 2.9 Stocks and Other

Equities 7.7 6.2 5.3 8.3 9.4 13.0 13.0 8.1 5.9 7.1

Investment Trusts 2.4 2.2 2.1 2.3 2.6 3.4 4.2 4.3 3.4 3.8 Insurance and

Pension Reserves 27.2 27.6 27.8 26.8 26.8 25.8 26.0 27.5 27.9 27.0 Others 5.1 5.0 5.9 5.4 4.6 4.4 4.2 4.1 4.0 4.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Note: Bonds include trust beneiciary rights. Source: Bank of Japan

Composition of Household Financial Assets

（Billion yen）

FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Securities Other

than Stocks 9,009 15,747 11,304 5,831 13,936 13,156 9,959 3,411 －1,058 6,173 Stocks and Other

Equities 6,069 1,685 788 －8,318 －2,633 －4,555 －483 1,904 1,692 1,983 Foreign Securities －447 4,428 4,112 7,055 3,592 4,313 840 －1,536 －1,834 2,988

Source: Bank of Japan

（Billion yen）

FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Securities Other

than Stocks 4,021 －7,125 －6,676 －1,264 7,940 12,553 12,433 11,147 823 －1,997 Stocks and Other

Equities －1,627 －1,433 －31 －2,437 1,256 －2,085 －3,401 －442 2,287 －2,091 Foreign Securities 219 1,783 842 －380 －504 163 －155 2,135 1,543 －235

Source: Bank of Japan

５ Investor Trends

Investments by Institutional Investors (Insurance Companies and Pension Funds)

(25)

Statistical Data

23

（％）

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Individuals 19.4 19.7 20.6 20.5 21.3 19.9 18.7 18.7 20.5 20.1 Governments 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.3 Financial Institutions 19.9 19.9 20.1 18.3 16.9 15.9 15.1 14.6 16.0 15.5 Pension Trusts 5.5 6.0 5.8 4.5 3.9 3.5 3.5 3.5 3.5 3.4 Investment Trusts 2.8 3.3 4.0 3.7 3.8 4.3 4.6 4.8 5.0 4.7

Insurance

Companies 10.9 10.2 9.3 8.0 7.4 7.2 7.5 7.5 7.4 7.0

Business

Corporations 21.8 21.8 21.5 21.8 22.1 21.3 20.8 21.4 22.6 21.3 Foreigners 18.8 18.3 17.7 21.8 23.3 26.3 27.8 27.4 23.5 26.0 Securities Firms 0.7 0.7 0.9 1.2 1.2 1.4 1.8 1.5 1.0 1.6 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Note: 1. Governments include central and regional governments.

2. Financial Institutions do not include Pension Trusts, Investment Trusts and Insurance Companies. 3. Figures cover all exchange-listed stocks excluding foreign stocks.

4. Pension Trusts include investment assets of pension related funds of welfare pension funds, etc. for which banks operating trust business are appointed as trustee, but do not include those of public pension funds.

5. Treasury shares owned by each listed company are included under the investor type in which the companies are categorized.

6. In April 2010, the Jasdaq Securities Exchange merged with the Osaka Securities Exchange, with the Jasdaq and NEO markets becoming part of the OSE market. Consequently, starting with iscal 2009, the igures for the two markets (Jasdaq and NEO) have been combined.

In addition, retroactive adjustments have been made to available igures back to iscal 2004. Source: Tokyo Stock Exchange

Stockholdings by Type of Investors (market value basis)

（Billion yen）

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Individuals 68,934 61,033 48,679 75,599 84,740 117,977 108,419 76,653 54,345 68,469 Governments 560 533 538 789 722 977 1,866 1,567 1,137 1,152 Financial Institutions 70,551 61,797 47,553 67,554 67,402 94,097 87,678 59,843 42,541 52,628 Pension Trusts 19,652 18,696 13,630 16,581 15,430 20,927 20,185 14,149 9,364 11,697 Investment Trusts 9,877 10,302 9,384 13,602 15,219 25,537 26,865 19,739 13,378 15,956

Insurance

Companies 38,535 31,687 21,988 29,566 29,441 42,688 43,452 30,875 19,652 23,728 Business

(26)

Statistical Data

24 FACT BOOK

2010

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

City Banks 9 7 7 7 7 6 6 6 6 6

Trust Banks 18 15 14 14 14 14 14 16 15 14

Government-ailiated

Financial Institutions 2 2 2 2 2 2 2 2 2 3

Regional Banks 64 64 64 64 64 64 64 64 64 64

Second-tier

Regional Banks 57 56 53 50 48 47 46 45 44 42

Shinkin Banks 39 37 37 35 34 36 36 37 38 39

Shinkin Central Bank 0 1 1 1 1 1 1 1 1 1

Life Insurance

Companies 20 19 18 17 17 16 16 12 12 12

Non-Life Insurance

Companies 20 17 14 14 13 13 13 10 8 8

Money Market Brokers 6 3 3 3 3 3 3 3 3 3

Foreign Banks 5 5 4 4 5 9 8 12 15 15

Securities Finance

Companies 1 1 1 1 1 1 1 1 2 3

Credit Cooperatives 0 0 0 0 0 2 2 2 3 3

Other Banks 3 4 4 4 6 4 4 9 10 10

Public Corporation 0 0 0 0 0 1 1 0 0 0

Total 244 231 222 216 215 219 217 220 223 223

Note: Other Banks included foreign trust banks and long-term credit banks. Source: Japan Securities Dealers Association

Special Members (Registered Financial Institutions) by Category

Member Firms

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Regular Members 293 290 281 266 267 289 308 317 321 305 Enrollment 23 19 18 8 7 30 33 22 25 10 Withdrawal 26 22 27 23 6 8 14 13 21 26

Note: 1. Withdrawal includes the decrease in the number of regular members due to the merger, etc. 2. Figures for all years are at March 31.

Regular Members (Securities Firms)

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Employees 94,717 96,692 89,294 85,027 86,406 87,913 92,661 99,139 99,200 93,308

Regular Members’ Employees

２

(27)

Statistical Data

25

End of CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Regular

Members 72,846 75,107 72,069 67,539 69,298 71,965 76,054 81,260 81,198 77,265

Special

Members 345,643 367,485 363,470 362,908 356,353 345,374 357,542 349,261 354,559 360,071

Financial Instruments Intermediary Service Providers belonging to Regular Members

－－－－－ 1,144 1,870 2,134 2,056 1,944

Financial Instruments Intermediary Service Providers belonging to Special Members

－－－－－ 11 13 98,433 99,092 100,658

Total 418,489 442,592 435,539 430,447 425,651 418,494 435,479 531,088 536,905 539,938

Note: 1. The JSDA began recording the number of securities sales representatives of inancial instruments intermediary service providers in 2005. 2. Excluding representatives of individual inancial instruments intermediary service providers.

Securities Sales Representatives

End of FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Head Oice 293 290 281 266 267 289 308 317 321 305 Branches 1,731 1,683 1,565 1,511 1,529 1,514 1,534 1,561 1,575 1,550 Business Oices 285 276 257 263 281 324 372 418 419 387

Total 2,309 2,249 2,103 2,040 2,077 2,127 2,214 2,296 2,315 2,242

Regular Members’ Domestic Oices

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Class-1

(No. of Examinees) 10,288 14,761 10,135 5,544 25,452 91,739 74,148 61,716 60,635 61,108 Class-2

(No. of Examinees) 9,002 12,646 9,313 6,060 61,705 133,648 102,635 85,559 87,647 75,797

Special Member's Class-1

(No. of Examinees) 45,041 39,817 30,807 22,843 11,754 14,266 21,715 15,995 15,233 15,575

Special Member's Class-2

(No. of Examinees) 48,185 44,746 39,297 30,434 23,666 44,090 75,680 70,160 67,978 108,691

Total 112,516 111,970 89,552 64,881 122,577 283,743 274,178 233,430 231,493 261,171

Note: 1. Class-1 Sales Representatives are authorized to engage in the duties of sales representative with the exception of Speciied OTC Derivatives Transactions, etc., while Class- 2 Sales Representatives are authorized to engage in the duties of sales representative of Class- 1 Sales Representatives with the exception of securities-related derivatives and bonds with options transactions and margin, etc. transactions.

2. As of April 2004, employees of Special Members became eligible to take the Class-1 and Class-2 sales representative examinations.

3. As of September 2 0 0 4, JSDA lifted its restrictions (must be an oicer or employee of an association member irm) on eligibility for taking the Class- 2 Sales Representative examination.

Examinees of Securities Sales Representative

３

４

(28)

Statistical Data

26 FACT BOOK

2010

（Billion yen）

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Selling and General

Administration Costs 2,265 2,266 2,040 2,221 2,319 2,793 3,043 3,123 2,761 2,773 Transaction Expenses 390 352 328 379 422 536 586 581 523 502 Employment Cost 1,135 1,116 972 1,096 1,105 1,345 1,431 1,390 1,122 1,202 Real Estate &

Equipment Costs 294 302 278 266 262 265 299 325 319 306

Data Processing &

Oice Supplies Costs 239 272 263 270 295 314 365 419 424 414

Others 205 222 197 206 233 331 359 407 371 346 Financial Expenses 370 273 223 285 335 436 646 879 705 267 Operating costs 2,635 2,540 2,263 2,506 2,654 3,230 3,689 4,002 3,467 3,041

Note: 1. Securities irms that were not in business as of the end of March in each year are excluded. 2. Figures for iscal 2009 ended March 2010 are on a preliminary report basis.

Operating Expenses of Member Securities Firms

（％）

CY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Class 1 58.5 50.2 57.0 75.2 75.4 66.8 54.2 52.1 49.9 47.0 Class 2 81.3 77.2 68.0 79.9 72.8 66.5 57.9 58.4 54.9 55.5 Special Member's

Class-1 54.5 50.8 43.3 57.0 48.9 55.4 49.7 42.8 39.0 38.5

Special Member’s

Class-2 58.4 56.3 58.0 66.6 55.7 55.8 49.9 47.6 42.6 39.9

Note: 1. Class-1 Sales Representatives are authorized to engage in the duties of sales representative with the exception of Speciied OTC Derivatives Transactions, etc., while Class-2 Sales Representatives are authorized to engage in the duties of sales representative of Class-1 Sales Representatives with the exception of securities-related derivatives and bonds with options transactions and margin, etc. transactions.

2. As of April 2004, employees of Special Members became eligible to take the Class-1 and Class-2 sales representative examinations.

3. As of September 2004, JSDA lifted its restrictions (must be an oicer or employee of an association member irm) on eligibility for taking the Class-2 Sales Representative examination.

Pass Rate of Securities Sales Representative Examination

（Billion yen）

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Commission 2,018 1,669 1,469 2,046 2,221 3,195 2,956 2,830 1,797 2,129 Trading Gain 771 401 549 871 723 1,078 856 579 435 808 Financial Revenue 423 433 362 369 434 622 847 1,150 860 416

Others 0 1 5 7 9 15 24 23 62 33

Operating Revenues 3,213 2,505 2,386 3,294 3,388 4,911 4,686 4,582 3,156 3,386

Operating Revenues of Member Securities Firms

Performance of Securities Industry

１

(29)

Statistical Data

27

（Billion yen）

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Major Firms 249 －44 53 231 214 463 332 －267 －110 96 Foreign Firms 45 －93 －7 75 91 344 71 －8 －76 17 Other Domestic Firms －8 －211 －215 201 177 328 183 130 －159 97

2. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities Capital Markets Co. Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more

（％）

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Major Firms 8.3 －1.7 2.7 11.0 9.3 18.2 10.9 －9.7 －4.4 3.7 Foreign Firms 5.5 －11.2 －0.9 9.4 10.8 38.2 7.6 －1.2 －16.6 4.3 Other Domestic Firms －0.4 －9.1 －10.2 9.4 7.4 11.0 5.2 3.2 －4.1 2.9

Note: 1. Firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.

3. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities Capital Markets Co. Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more

Net Income/Loss by Type of Member Securities Firms

ROE by Type of Member Securities Firms

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Net Income

（Billion yen） 287 －348 －169 508 483 1,136 588 －145 －346 211

ROE

（％） 4.5 －6.0 －3.5 10.1 8.7 17.7 7.9 －1.9 －5.0 3.2

Note: 1. Securities irms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.

Net Income/Loss and ROE of Member Securities Firms

（Billion yen）

FY ended 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3

Current Proits/Losses 589 －17 135 793 758 1,699 1,015 657 －243 338

Current Proits/Losses of Member Securities Firms

３

４

５

(30)

(31)