5-8, Nihonbashi Kayabacho 1-chome, Chuo-ku,
Tokyo 103-0025 Japan
Contents
Securities Market in 2005 ……… 1
Member Firms ……… 11
Performance of Securities Industry … 14
Securities Market in 2005
1Economic Trend
In 2005, the Japanese economy demonstrated sustained recovery supported by robust private demand, which was mainly driven by rising capital investment relecting strong corporate proit and gradually increasing personal consumption owing to the improvement in employment and income. Later in the year, corporate, household and over seas sectors showed well balanced develop-ment.
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（Quarterly） Note: Data is year-on-year comparison.
Source: Cabinet Office
Net Exports Public Demand Private Demand Real GDP
Real GDP Growth Rate
Real GDP Growth Rate
Corporate proits continued to improve largely because corporate sectors increased their sales amount and kept a lid on their ixed costs having purged a large fraction of excessive employment, facilities and debts. Current proits and current proit to sales ratio in all industries increased for four years in a row from iscal 2002 to iscal 2005.
("Fiscal Year (FY)" begins on April 1 and runs through March 31.)
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Source: Ministry of Finance
Corporate Profits (All Industry, All Size)
Current Profits (left scale) Current Profit to Sales Ratio (right scale)
Securities Market in 2005
There was a change in the commodity price trend, which had been on the downward path for a long period of time. Leaving out such special factors as the price rise among oil products, the composite consumer price index (excluding fresh food) nearly leveled of and demonstrated a pickup from delation.
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（ Note: Data are annual average except those for 2006, which are only up until June and seasonally adjusted. Source: Ministry of Internal Affairs and Communications, Bank of Japan
Consumer Price Index (excluding fresh food) Corporate Goods Price Index (final consumer goods)
While diicult employment circumstances re-mained among young people as well as people living in local regions, employment conditions improved widely against the background of con-tinued economic recovery, which was evidenced by the increase in employment and the continued decline in the unemployment rate. Looking at the job-ofers to seekers ratio (excluding new school graduates but including part-time workers), the number of job ofers was almost equal to that of job applicants as of the end of 2005.
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Notes: 1. Data are annual average except those for 2006, which are only up until June and seasonally adjusted.
2. “Job-offers to Seekers Ratio” excludes new school graduates but includes part-time workers. Source: Ministry of Internal Affairs and Communications, Ministry of Health, Labour and Welfare
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Employment Conditions
Unemployment Rate (left scale) Job-offers to Seekers Ratio (right scale)
Securities Market in 2005
2Stock Market
Nikkei 225 Stock Average turned upward af-ter falling below 11,000 in May 2005. Thanks to a good corporate proit outlook and high levels of investment by foreign institutions, it climbed to the 16,000 mark at the end of 2005. Stock prices in emerging equity market also went up. Nikkei Jasdaq Stock Average stood at nearly 2,700 at the end of the year.
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In 2005, the daily average stock trading value of Tokyo Stock Exchange 1st Section hit a record high of ￥1,874 billion, increasing 42.3%. This growth relected the expanded Internet trading volume and margin trading volume by individual investors and active investment by foreign institutions. The daily average stock trading value of Jasdaq Securities Exchange reach ed ￥80 billion, increasing 56.0%.
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Note: Data for Jasdaq Securities Exchange before 2004 comes from the previous Jasdaq Market. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12. Source: Tokyo Stock Exchange, Jasdaq Securities Exchange
TSE 1st Section (left scale) Jasdaq Securities Exchange (right scale)
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Securities Market in 2005
In 2005, under the irm stock market conditions, equity inancing (excluding exercise of warrants and CBs) by publicly listed companies totaled ￥3.1 trillion, increasing 4.6% from ￥3.0 trillion in the previous year.
Looking at issuing categories, the amount of public oferings declined 18.8% year on year to ￥0.7 trillion. Private placement advanced 15.2%, to￥2.4 trillion compared with the previous year.
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Note: Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association
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Public Offerings Rights Offerings Private Placements and Others
In 2005, a total of 157 companies went public. The number of newly listed companies decreased by 21 compared with the previous year. Total capi-tal raised through IPOs decreased 4.5%, to ￥402 billion.
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（trillion yen）
（CY） Notes: 1. IPOs do not include offerings by foreign companies that are listed in Japan. 2. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
Newly Listed Companies and IPO Amounts
IPO Amounts (right scale) Number of Newly Listed Companies (left scale)
Newly Listed Companies and IPO Amounts
Securities Market in 2005
3Bond Market
Looking at the interest rate trend during 2005, the uncollateralized overnight call rate remained at almost 0% under the quantitative relaxation policy. On the other hand, the long-term JGB yield remained in the range of 1.3% to 1.4% dur ing the middle of the year. Later in the year, the yield rose to between 1.6% to 1.8% due to the recovery of business conidence and stock market.
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In 2005, The total OTC bond trading volume (including Repos) increased 4.2%, to ￥6,758 tr illion. The trading volume of JGBs rose 4.0%, to ￥6,428 trillion. In particular, super-long-term JGBs, with their terms of more than 10 years, are popular with such institutional investors as pen-sion funds and insurance companies. Amid an upturn in interest rates, there were strong buy orders for JGBs from these investors.
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Notes: “Short-term JGBs” are the total of financial bills and treasury bills. Source: Japan Securities Dealers Association
OTC Bond Trading
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Short-term JGBs Super-long-term, Long-term, Mid-term JGBs Others
Securities Market in 2005
In 2005, corporate debt inancing in the Japanese market advanced 23.8% year on year to ￥7.9 trillion.
Corporate straight bond issuance increased 20.5%, to ￥7.0 trillion. Issuance of convertible-type bonds with subscription rights increased 58.4%, to ￥0.8 trillion. In the straight bond category, total issuance increased due to higher issuance of corporate and electric power company bonds and bank subordinated bonds as well as bonds of new issuance bodies.
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In 2005, public bond issuance advanced 6.5%, to ￥227.1 trillion. By bond category, JGB issuance increased 6.2%, to ￥186.1 trillion. Issuance of municipal bonds expanded by 17.1%, to ￥6.1 trillion. That of FILP (Fiscal Investment and Loan Program) agency bonds jumped by 31.3%, to ￥4.1 trillion and straight corporate bonds in-creased 18.8%, to ￥6.8 trillion. On the other hand, government-guaranteed bond issuance declined 5.1%, to ￥7.8 trillion.
Looking at the composition of bond issuance volume, the breakdown was as follows; JGBs - 81.9%, municipal bonds - 2.7%, government-guaranteed bonds - 3.4%, FILP agency bonds - 1.8% and straight corporate bonds - 3.1%.
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Securities Market in 2005
4Investment Trusts
Total assets of investment trusts as of the end of 2005 were ￥83,189 billion, of which publicly ofered trusts accounted for ￥57,485 billion and private placement trusts accounted for ￥25,704 billion.
Total assets of contractual-type securities in-vestment trusts, among publicly ofered ones, climbed to ￥55,348 billion, recovering to 1989 level s. Total assets of real-estate investment trust s (company-type investment trusts) were ￥2,050 billion, rising above the two trillion yen level for the irst time.
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assets of ￥25,643 billion, setting a record high. ı
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Among publicly ofered contractual-type securities investment trusts, stock investment trusts posted total assets of ￥40,829 billion. This was the irst time these investment trusts have forty-trillion yen in sixteen years since the bubble period. Total assets of bond investment trusts increased to￥11,498 billion after one year of decline, expanding 15.5% year on year. Total assets invested in foreign securities climbed 60.5%, to ￥19,750 billion. This was because increasing number of trusts invested their assets into such emerging economies as BRICs.
Banks and other inancial institutions accounted for 48.8% of total net assets of publicly ofered contractual-type stock investment trusts as of the end of 2005, up by 2.7 percentage points from the previous year.
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Securities Market in 2005
Among publicly ofered contractual-type stock investment trusts, unit-type trusts had total assets of ￥1,945 billion due to the growing popularity of risk-limited funds. On the other hand, net assets held in open type trusts excluding ETFs hit a record high of ￥35,180 billion because balance funds that invest in foreign bonds with relatively high yields and funds of funds were popular. Since their introduction in 2001, ETFs have steadily increased their total assets, which rose to ￥3,704 billion in the iscal year under review.
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Private placement investment trusts were set up one after another during the iscal year attracting investors with their lexibility of the product design and continuing to increase their net assets. Facing the fund management diicul-ties caused by low interest rates, inancial institu-tions and pension funds especially increased their fund management by private placement trusts that invest in domestic and foreign stocks and corporate bonds, asset backed securities and hedge funds.
Among private placement contractual-type trusts, total assets of stock investment trusts amounted to ￥24,724 billion, increasing by more than ten trillion yen during 2005. On the other hand, total assets of bond investment trusts slightly decreased by 3.2%, to ￥919 billion.
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Securities Market in 2005
5Investor Trends
Among institutional investors, life and non-life insurance companies and pension funds continued to steadily increase their investments in securities other than stocks, and those in foreign securities. Especially, among securities other than stocks, there were prominent in-creases in investments in JGBs, investment trust bene iciary certiicates and products related to credit liquidation.
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Looking at individual investor trends, funds invested in securities other than stocks, such as JGBs and investment trusts, have been increasing signiicantly since iscal 2004. On the other hand, despite the downward turn in investment in stock s and other equity by individuals in iscal 2005, asset value of this category as of the end of iscal 2005 showed an increase of about ifty-ive trillion yen year on year on a marked-to-market basis owing to the rise of stock prices.
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（FY） Source: Bank of Japan
Investments by Individual Investors (Household)
Securities Other than Stocks Stocks and Other Equities Foreign Securities
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Securities Market in 2005
The household inancial assets at the end of March 2006 climbed by 5.8% or ￥81.9 trillion, to ￥1,506 trillion, reaching the highest level ever. The ultra-low interest rate contributed to the decrease in cash and deposits by ￥4.7 trillion, and therefore the ratio of household inancial assets held in cash and deposits dropped by 3.3 percentage points. In contrast, stocks and other equities expanded by 3.0 percentage points or ￥53.5 trillion. This growth relected a substantial 46% rise in the Nikkei 225 Stock Average from the end of the previous iscal year, which increased the market values of stocks held by individuals.
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（End of FY）
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Composition of Household Financial Assets
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Composition of Household Financial Assets
According to a survey by stock exchanges, total investment assets held in all sectors as of the end of March 2006 amounted to ￥574.5 trillion, up by 49.0% or ￥188 trillion year on year due to the signiicant rise in stock prices.
The number of individual stockholders reached a record high of 38.1 million, expanding by 2.7 million. However, the proportion of stockholdings by individual investors declined by 1.2 percentage points, to 19.1% due to their continued selling for proit-taking.
On the other hand, the proportion of stock-holdings by foreigners substantially increased by 3.0 percentage points, to 26.7%.
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Governments Investment Trusts
Financial Institutions Insurance Companies Business Corporations Foreigners Securities Firms
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Member Firms
1JSDA Members
The number of regular members (securities irms) as of the end of March 2006 was 289. The increase occurred because many newcomers, such as inancial futures trading irms and irms specialized in foreign investment trusts, enrolled owing to the spreading efect of regulatory libe-ralization and the good market environment. While 30 new members enrolled, 8 members with-drew. In total, regular members increased by 22 from the year before.
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（End of FY） Note: Data for 2006 is as of August 1, 2006.
Source: Japan Securities Dealers Association
Regular Members
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The number of special members as of the end of March 2006 was 219, increasing by 4 from the previous year. A breakdown by categories shows 6 city banks (decreased by 1), 14 trust banks (unchanged), 64 regional banks (unchanged), 47 second-tier regional banks (decreased by 1), 36 shinkin banks (increased by 2), 16 life insurance companies (decreased by 1), 12 non-life insur-ance companies (unchanged) and others.
Japan Post joined JSDA in July 2005 and was listed as a public corporation in the breakdown.
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Member Firms
2Securities Firms' Employees
The number of employees at the end of De-cember 2005 was approximately 87,000, rising by about 1,500 from the year before.
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（End of CY） Source: Japan Securities Dealers Association
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Securities Firms’ Employees
Securities Firms’ Employees
3Securities Firms' Domestic Offices
The number of securities irms’ domestic branches as of the end of March 2006 was 1,514, decreasing by 1.0% from the year before as a result of mergers of securities irms.
On the other hand, the number of business oices was 324, rising by 15.3% due to an in-crease in the number of joint oices with banks. The number of domestic oices excluding the head oice was 1,838, rising by 1.5% from the iscal year before.
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Member Firms
4Securities Sales Representatives
The number of securities sales representatives as of end of December 2005 was approximately 417,000, a decline of about 8,000 year on year. The number of securities sales representatives belonging to securities irms was 71,000, increas-ing by roughly 2,000 from the year before. On the other hand, the number of securities sales representatives belonging to inancial institutions was 345,000, decreasing by about 11,000 from the year before. ı Ķı IJıı IJĶı ijıı ijĶı Ĵıı ĴĶı ĵıı （thousands）
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5 Securities Sales Representatives
of Securities Sales Agents
The number of securities sales representatives of securities sales agents at the end of December 2005 was 1,144, sharply rising by 173.0% from the previous year. Among them, class-1 securities sales representatives numbered 341, or 29.8%. The remainder, 803 or 70.2%, was class-2 secu-rities sales representatives.
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P
erformance of Securities Industry
1Operating Revenues of Member Securities Firms
Looking at the overall performance of the in dust ry (288 securities irms*) during the iscal year 2005 ended March 2006, the industry record-ed total operating revenues of ￥4,912 billion, ju mp ing by 44.9% from the previous year. This performance relected the strong stock market for the year, driven by the increasing numbers of transactions by foreign and individual investors.
Among total operating revenues, commissions increased by 43.8% to￥3,196 billion and trading gain climbed by 49.0% to￥1,078 billion. In addi-tion, net inancial revenues advanced 43.2% to ￥622 billion.
* Of a total of 289 securities irms at the end of iscal year ended March 2006, one domestic securities irm had halted its operations.
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2Operating Expenses of Member Securities Firms
Operating expenses for the iscal year 2005 ended March 2006 grew to ￥3,230 billion. Among operating expenses, transaction expenses rose by 26.9% to ￥537 billion, employment cost by 21.7% to ￥1,346 billion, real estate and equipment expenses by 1.3% to ￥266 billion and data pro-cessing and oice supplies expenses by 6.6% to ￥315 billion. Combining these is selling, general and administrative expenses, which jumped by 20.4% to ￥2,794 billion. Financial expenses were ￥436 billion, also rising by 30.2%.
ı ıįĶ IJįı IJįĶ ijįı ijįĶ Ĵįı ĴįĶ （trillion yen）
（End of FY） Note: Securities firms that were not in business as of the end of March in each year are excluded.
Operating Costs of Member Securities Firms
Transaction Expenses Real Estate & Equipment Costs Financial Expenses
Employment Cost Data Processing & Office Supplies Costs
ıĶ ıĵ ıĴ ıij ıIJ ıı ĺĺ ĺĹ ĺĸ ĺķ
Operating Costs of Member Securities Firms
P
erformance of Securities Industry
3Current Profits/Losses of Member Securities Firms
Current proits of the iscal year 2005 ended March 2006 substantially increased by 124.1% to ￥1,700 billion.
Įıįij ı ıįij ıįĵ ıįķ ıįĹ IJįı IJįij IJįĵ IJįķ IJįĹ （trillion yen）
（End of FY） Note: Securities firms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
Current Pr
ofits/Losses of Member Securities Firms
ıĶ ıĵ ıĴ ıij ıIJ ıı ĺĺ ĺĹ ĺĸ ĺķ
Current Profits/Losses of Member Securities Firms
4Net Income/Deficit and ROE of Member Securities Firms
Net income of the iscal year 2005 ended March 2006 surged by 135.1% to￥1,136 billion. Return on equity (ROE) was 17.7%, a substantial improvement of 9 percentage points compared with the previous year's 8.7%.
ĮIJįı ĮıįĶ ıįı ıįĶ IJįı IJįĶ
ĮIJĶ ĮIJı ĮĶ ı Ķ IJı IJĶ ijı
Net Income (left scale)
ROE (right scale)
（trillion yen）
（End of FY） （%）
Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax profits divided by average stockholders equity.
Source: Japan Securities Dealers Association
N
ĺķ ĺĸ ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ
P
erformance of Securities Industry
5Net Income/Deicit by Type of Member Securities Firm
Looking at net income by category of irms for the iscal year 2005 ended March 2006, each category recorded substantial increase compared with the previous year's income: 120.7% increase to ￥464 billion in major securities irms, 116.7% increase to ￥344 billion in foreign securities irms and 133.5% increase to ￥328 billion in the rest of the domestic securities irms.
ĮĴıı Įijıı ĮIJıı ı IJıı ijıı Ĵıı ĵıı Ķıı
Major Firms Foreign Firms Other Domestic Firms
（billion yen）
（End of FY） Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. Major securities firms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities I nc., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more Source: Japan Securities Dealers Association
Net Income/Deficit by Type of Member Securities Firms
ıIJ ıij ıĴ ıĵ ıĶ
Net Income/Deficit by Type of Member Securities Firms
6ROE by Type of Member Securities Firm
Looking at ROE by category of irms for the iscal year 2005 ended March 2006, each category recorded substantially positive ROE compared with the previous year: 8.9 percentage points increase to 18.2% in major securities irms, 27.4 percentage points increase to 38.2% in foreign securities irms and 3.6 percentage points in-crease to 11.0% in the rest of the domestic securities irms.
Įijı ĮIJı ı IJı ijı Ĵı ĵı Ķı
Major Firms Foreign Firms Other Domestic Firms
（％）
（End of FY） Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax profits divided by average stockholders equity.
ROE by Type of Member Securities Firms
ıIJ ıij ıĴ ıĵ ıĶ
Statistical Data
Statistical Data
◉
Real GDP Growth Rate
（％） Quarterly Real GDP Growth Rate
(Year-on-year comparison) Private Demand Public Demand Net Exports
2000 1Q 2.9 2.2 0.0 0.7
2Q 2.8 2.0 0.1 0.7
3Q 3.2 2.5 0.1 0.6
4Q 2.9 3.0 -0.3 0.1
2001 1Q 2.5 2.7 0.7 -0.8
2Q 1.0 1.9 0.1 -1.0
3Q -0.2 0.7 0.1 -1.0
4Q -1.6 -1.3 0.2 -0.5
2002 1Q -2.2 -2.6 0.0 0.3
2Q -0.3 -1.4 0.2 0.9
3Q 1.3 0.4 0.3 0.7
4Q 1.7 0.9 -0.1 0.9
2003 1Q 1.8 1.6 -0.3 0.5
2Q 1.7 1.3 0.0 0.4
3Q 1.5 1.0 -0.3 0.8
4Q 2.2 1.7 -0.4 0.9
2004 1Q 3.8 2.3 0.3 1.1
2Q 2.8 1.9 -0.2 1.1
3Q 2.4 2.0 -0.3 0.7
4Q 0.4 0.3 -0.2 0.3
2005 1Q 1.4 2.1 -0.6 -0.1
2Q 2.6 2.5 0.1 0.0
3Q 2.8 2.2 0.4 0.1
4Q 3.7 2.6 0.2 0.9
2006 1Q 3.6 2.6 0.1 0.9
Source: Cabinet Oice
Securities Market in 2005
Statistical Data
◉
Corporate Proits (All Industry, All Size)
FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Current Proits
(trillion yen) 28 28 21 27 36 28 31 36 45 52 Current Proit to
Sales Ratio (%) 1.9 1.9 1.5 1.9 2.5 2.1 2.3 2.7 3.1 3.4
Source: Ministry of Finance
◉
Consumer Price and Corporate Goods Price Indices
（％） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Consumer Price Index
(excluding fresh food) 0.2 1.7 0.4 0.0 -0.5 -0.8 -0.9 -0.3 -0.1 -0.1 0.1 Corporate Goods Price Index
(inal consumer goods) -0.7 0.5 -0.6 -1.4 -1.3 -1.4 -1.9 -1.6 -0.6 -0.1 0.3
Note: Figures are annual average except those for 2006, which are only up until June and seasonally adjusted. Source: Ministry of Internal Afairs and Communications, Bank of Japan
◉
Employment Conditions
CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Unemployment Rate
(%) 3.4 3.4 4.1 4.7 4.7 5.0 5.4 5.3 4.7 4.4 4.2 Job-ofers to Seekers Ratio
(Ratio(Times)) 0.70 0.72 0.53 0.48 0.59 0.59 0.54 0.64 0.83 0.95 1.08
Notes: 1. Figures are annual average except those for 2006, which are only up until June and seasonally adjusted. 2. "Job-ofers to Seekers Ratio" excludes new school graduates but includes part-time workers.
Source: Ministry of Internal Afairs and Communications, Ministry of Health, Labour and Welfare
◉
Daily Average Stock Trading Value of TSE (1st Section) and Jasdaq
（billion yen） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
TSE 1st Section 393.1 434.3 388.6 726.6 978.3 812.3 775.8 971.0 1,316.7 1,874.0 Jasdaq Securities
Exchange 23.9 10.8 6.2 49.7 46.0 20.3 14.9 25.9 51.1 79.7
Note: Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. FIgures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Statistical Data
◉
Equity Financing by Corporations
（billion yen） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Public Oferings 563 173 333 527 690 1,235 194 642 929 754 Rights Oferings 337 74 0 0 10 32 － 2 11 4 Private Placements and Others 825 607 1,209 9,531 1,223 838 1,558 2,801 2,113 2,435 Total 1,726 854 1,543 10,059 1,924 2,106 1,753 3,446 3,054 3,193
Notes: 1. "-" indicates nil.
2. Total igures of domestic stock exchanges
3. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association
◉
Newly Listed Companies and IPO Amounts
CY 2000 2001 2002 2003 2004 2005
Number of Newly Listed Companies 200 169 124 121 171 157 IPO Amounts
(billion yen) 941 368 147 347 421 402
Notes: 1. IPOs do not include oferings by foreign companies that are listed in Japan. 2. Total igures of domestic stock exchanges
3. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
◉
OTC Bond Trading (Including Repos)
（trillion yen） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Total 3,182.8 3,385.7 2,606.7 3,836.7 4,061.1 4,058.0 3,665.9 5,110.2 6,481.4 6,758.2 JGBs 3,037.3 3,242.1 2,497.2 3,734.1 3,898.0 3,863.4 3,429.8 4,836.1 6,178.6 6,428.0 Short-term JGBs 1,972.3 2,089.5 1,421.4 2,606.9 2,621.9 2,243.2 1,489.9 1,933.6 2,179.2 1,817.5 Super-long-term,
Long- term, Mid-term JGBs 1,064.7 1,206.4 1,075.6 1,127.0 1,275.8 1,619.9 1,939.6 2,902.2 3,999.1 4,610.5 Others 145.8 89.8 109.7 102.8 163.4 194.9 236.4 274.4 303.1 330.2
Note: "Short-term JGBs" are the total of inancial bills and treasury bills. Source: Japan Securities Dealers Association
Statistical Data
◉
Domestic Debt Financing by Corporations
（billion yen） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Straight Corporate Bonds 6,146 6,526 12,784 7,498 8,276 8,609 7,736 7,728 5,879 7,088 Convertible-type Bonds
with Subscription Rights 3,289 270 246 592 357 300 427 72 561 889 Bonds with Subscription Rights － － － － － － － － － － Total 9,435 6,796 13,031 8,090 8,633 8,910 8,164 7,801 6,440 7,977
Notes: 1. "Straight Corporate Bonds" include asset backed bonds. 2. "-" indicates nil.
3. 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
（％） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
JGBs 51.7 57.6 64.0 70.4 71.3 77.1 81.3 80.8 82.2 81.9 Municipal Bonds 1.4 1.6 1.3 1.4 1.5 1.3 1.4 2.2 2.5 2.7
Gov.-guaranteed Bonds 2.2 2.5 1.7 2.0 3.3 2.8 2.3 3.4 3.9 3.4
FILP Agency Bonds － － － － － 0.3 1.3 1.3 1.5 1.8
Straight Corporate Bonds 4.4 5.5 9.7 5.2 5.6 5.0 4.3 4.0 2.8 3.1
Others 40.3 32.8 23.3 21.0 18.3 13.6 9.4 8.2 7.2 6.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Notes: 1. Government bonds data includes only public oferings. 2. Excluding private placement municipal bonds
3. "Straight Corporate Bonds" include asset backed bonds. Source: Japan Securities Dealers Association
◉
Amount of Bond Issuance
（billion yen） CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
JGBs 72,219 67,824 84,804 102,050 105,996 133,970 147,831 154,686 175,268 186,155 Municipal Bonds 1,893 1,852 1,722 1,998 2,200 2,299 2,582 4,264 5,251 6,152
Gov.-guaranteed Bonds 3,106 2,939 2,270 2,966 4,854 4,815 4,216 6,476 8,243 7,821
FILP Agency Bonds － － － － － 546 2,408 2,457 3,188 4,187
Straight Corporate Bonds 6,146 6,526 12,784 7,498 8,276 8,609 7,736 7,728 5,879 7,088
Statistical Data
◉
Total Assets Held in Investment Trusts
（billion yen） End of CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Publicly Ofered
Investment Trusts 48,668 40,649 42,739 51,353 49,399 45,280 36,016 37,435 40,996 55,347 Real-estate
Investment Trusts － － － － － 236 441 766 1,246 2,050
Private Placement
Investment Trusts － － － 1,544 3,693 6,106 7,381 10,384 15,596 25,643
Total 48,668 40,649 42,739 52,897 53,092 51,622 43,838 48,585 57,838 83,040
Source: The Investment Trusts Association
◉
Total Assets Held in Publicly Ofered Contractual-type Securities Investment Trusts
（billion yen） End of CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Stock Investment
Trusts 12,779 9,986 11,496 15,696 14,610 14,905 16,372 21,339 27,435 40,828
Bond Investment
Trusts 21,669 19,099 16,963 18,866 23,817 22,652 14,121 11,746 9,955 11,498
Money Management
Funds 14,219 11,563 14,279 16,790 10,971 7,722 5,521 4,350 3,606 3,020
Total 48,667 40,648 42,738 51,352 49,398 45,279 36,014 37,435 40,996 55,346
Source: The Investment Trusts Association
◉
Total Assets Held in Publicly Ofered Contractual-type Stock Investment Trusts
（billion yen） End of CY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Unit Type 2,406 1,222 740 573 373 617 697 1,161 1,799 1,945 Open Type
(excluding ETF) 10,373 8,763 10,755 15,122 14,236 13,398 13,165 17,216 22,522 35,180 ETF － － － － － 889 2,509 2,962 3,113 3,703 Total 12,779 9,985 11,495 15,695 14,609 14,904 16,371 21,339 27,434 40,828
Source: The Investment Trusts Association
◉
Total Assets Held in Private Placement Contractual-type Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005
Stock Investment
Trusts 1,240 3,185 5,040 6,469 9,388 14,646 24,723
Bond Investment
Trusts 303 507 1,066 911 995 949 919
Total 1,543 3,692 6,106 7,380 10,383 15,595 25,642
Source: The Investment Trusts Association
Statistical Data
◉
Investments by Institutional Investors (Insurance Companies and Pension Funds)
（trillion yen） FY 2000 2001 2002 2003 2004 2005
Securities other than Stocks 9.1 14.4 12.3 6.0 12.8 10.7 Stocks and Other Equities 4.9 1.5 -1.5 -3.9 -2.6 -1.2 Foreign Securities -0.4 5.3 3.3 5.8 5.1 5.4
Source: Bank of Japan
5Investor Trends
◉
Investments by Individual Investors (Household)
（trillion yen） FY 2000 2001 2002 2003 2004 2005
Securities other than Stocks 2.9 -8.9 -7.6 -3.2 7.4 13.0 Stocks and Other Equities -1.9 -1.4 0.0 -3.2 1.2 -2.0 Foreign Securities 1.0 0.2 2.6 0.2 -0.8 -0.3
Source: Bank of Japan
◉
Household Financial Assets
（trillion yen） End of FY 2003 2004 2005
Cash and Deposits 779.9 775.6 770.9
Bonds 35.4 39.3 41.5
Stocks and Other Equities 118.7 124.7 178.2
Investment Trusts 33.8 37.9 54.9
Insurance and Pension Reserves 377.7 383.1 393.2
Others 58.5 57.3 60.1
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（trillion yen） End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Individuals 65.0 58.5 62.4 82.9 68.9 61.0 48.6 75.5 78.1 109.4 Governments 0.7 0.6 0.6 0.5 0.5 0.5 0.5 0.7 0.7 0.9
Financial
Institutions 76.4 69.6 72.5 85.8 70.5 61.7 47.5 67.5 66.7 93.1
Pension Trusts 8.0 11.8 15.6 23.1 19.6 18.6 13.6 16.5 15.2 20.7
Investment Trusts 6.8 4.9 4.4 10.2 9.8 10.3 9.3 13.6 14.8 25.0
Insurance
Companies 49.1 43.4 43.1 49.2 38.5 31.6 21.9 29.5 29.2 42.3
Business
Corporations 85.8 75.9 83.5 120.1 77.4 67.5 50.7 80.4 84.5 121.4
Foreigners 40.0 41.1 46.5 85.9 66.5 56.7 41.8 80.6 91.5 153.5 Securities Firms 3.1 2.0 1.8 3.8 2.5 2.1 2.0 4.4 4.4 7.9 Total 335.4 308.0 330.8 461.9 354.7 310.5 236.4 369.2 385.6 574.5
◉
Composition of Household Financial Assets
（％） End of FY 2003 2004 2005
Cash and Deposits 55.3 54.5 51.2
Bonds 2.5 2.8 2.8
Stocks and Other Equities 8.4 8.8 11.8
Investment Trusts 2.4 2.7 3.6
Insurance and Pension Reserves 26.8 26.9 26.1
Others 4.1 4.0 4.0
Total 100.0 100.0 100.0
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（％） End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Individuals 19.4 19.0 18.9 18.0 19.4 19.7 20.6 20.5 20.3 19.1 Governments 0.2 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2
Financial
Institutions 22.8 22.6 21.9 18.6 19.9 19.9 20.1 18.3 17.3 16.2
Pension Trusts 2.4 3.8 4.7 5.0 5.5 6.0 5.8 4.5 4.0 3.6
Investment Trusts 2.0 1.6 1.4 2.2 2.8 3.3 4.0 3.7 3.9 4.4
Insurance
Companies 14.7 14.1 13.1 10.7 10.9 10.2 9.2 8.0 7.6 7.4
Business
Corporations 25.6 24.6 25.2 26.0 21.8 21.8 21.5 21.8 21.9 21.1
Foreigners 11.9 13.4 14.1 18.6 18.8 18.3 17.7 21.8 23.7 26.7 Securities Firms 1.0 0.7 0.6 0.8 0.7 0.7 0.9 1.2 1.2 1.4 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Notes: 1. "Governments" include central and regional governments.
2. "Financial Institutions" do not include "Pension Trusts, "Investment Trusts", "Insurance Companies". 3. Figures cover all exchange-listed stocks excluding foreign stocks.
Source: Tokyo Stock Exchange
◉
Number of Regular Members
End of FY 2001 2002 2003 2004 2005 2006
Regular Members 290 281 266 267 289 307 Enrollment and Withdrawal -3 -9 -15 1 22 18
Statistical Data
◉
Number of Special Members by Category
End of FY 1994 2004 2005
City Banks 11 7 6
Long-term Credit Banks 3 2 2
Trust Banks 11 14 14
Government-related Financials 2 2 2
Regional Banks 64 64 64
Second-tier Regional Banks 65 48 47
Shinkin Banks 42 34 36
Shinkin Central Bank 1 1 1
Life Insurance Companies 18 17 16
Non-life Insurance Companies 21 13 13
Money Market Brokerage Companies 6 3 3
Foreign Banks 0 5 9
Securities Finance Companies 0 1 1
Credit Cooperatives 0 0 2
Other Banks 0 4 2
Public Corporation 0 0 1
Total 244 215 219
Notes: 1. Figures for 1994 are as of April 1, when special members enrolled in JSDA. 2. Before March 31, 2005, "Other Banks" include foreign trust banks. Source: Japan Securities Dealers Association
◉
Number of Securities Firms' Employees
（thousands） End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005
Employees 108.0 95.1 92.0 94.7 96.6 89.2 85.0 86.4 87.9
Source: Japan Securities Dealers Association
◉
Number of Securities Firms’ Domestic Oices
End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Branches 2,166 1,973 1,768 1,753 1,731 1,680 1,565 1,511 1,529 1,514 Business Oices 262 243 238 258 285 273 257 263 281 324
Statistical Data
◉
Number of Securities Sales Representatives
（thousands） End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005
Regular
Members 72.5 62.6 69.8 72.8 75.1 72.0 67.5 69.2 71.9
Special
Members 213.1 225.7 292.8 345.6 367.4 363.4 362.9 356.3 345.3
Source: Japan Securities Dealers Association
◉
Number of Securities Sales Representatives of Securities Sales Agents
End of CY 2004 2005
Class-1 153 341
Individual Securities Sales Agents 42 70
Class-2 266 803
Individual Securities Sales Agents 56 118
Source: Japan Securities Dealers Association
Performance of Securities Industry
◉
Operating Revenues of Member Securities Firms
（billion yen） End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Operating Revenue 2,871.0 2,523.3 2,579.1 3,795.6 3,213.2 2,505.7 2,386.8 3,294.2 3,388.7 4,911.5 Commission 1,943.6 1,617.8 1,585.3 2,791.2 2,018.5 1,669.0 1,469.2 2,046.2 2,221.8 3,195.5 Trading Gain 545.5 429.6 552.0 680.6 771.3 401.1 549.9 871.8 723.3 1,078.0 Financial Revenue 381.8 475.5 441.0 323.1 423.4 433.6 362.3 369.0 434.5 622.3
Note: Securities irms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
◉
Operating Costs of Member Securities Firms
（billion yen） End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Selling, General and
Administrative Expenses 2,308.2 2,062.1 1,967.1 2,209.5 2,265.0 2,266.7 2,040.3 2,221.0 2,319.9 2,793.9 Transaction Expenses 379.1 328.1 325.1 406.6 390.8 352.2 328.0 379.4 422.8 536.5 Employment Cost 1,033.0 921.3 911.8 1,110.0 1,135.8 1,116.2 972.8 1,096.7 1,105.9 1,345.6
Real Esate & Equipment Costs 335.8 290.9 292.2 284.5 294.0 302.4 278.5 266.4 262.2 265.7 Data Processing &
Oice Supplies Costs 251.5 204.9 208.7 224.4 239.2 272.7 263.7 270.4 295.4 314.8 Financial Expenses 439.2 478.7 455.2 318.3 370.2 273.4 223.6 285.6 335.0 436.1
Statistical Data
◉
Current Proits/Losses of Member Securities Firms
（billion yen） End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Current Proits/Losses 128.4 -9.5 144.8 1,254.0 589.3 -17.3 135.7 793.2 758.3 1,699.8
Note: Securities irms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
◉
Net Income/Deicit and ROE of Member Securities Firms
End of FY 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Net Income/Deicit (billion yen) -764.1 -215.3 -572.6 392.0 287.2 -348.9 -169.8 508.3 483.4 1,136.3
ROE (%) -11.6 -3.9 -10.9 6.8 4.5 -6.0 -3.5 10.1 8.7 17.7
Notes: 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.
Source: Japan Securities Dealers Association
◉
Net Income/Deicit by Type of Member Securities Firms
（billion yen） End of FY 2001 2002 2003 2004 2005
Major Firms -44.0 53.0 231.7 214.8 463.8 Foreign Firms -93.2 -7.6 75.3 91.5 344.2 Other Domestic Firms -211.6 -215.3 201.1 177.0 328.2
Note: Securities irms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
◉
ROE by Type of Member Securities Firms
（％） End of FY 2001 2002 2003 2004 2005
Major Firms -1.7 2.7 11.0 9.3 18.2
Foreign Firms -11.2 -0.9 9.4 10.8 38.2 Other Domestic Firms -9.1 -10.2 9.4 7.4 11.0
Notes: 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.
