Contents
Securities Market in 2008 ……… 1
Member Firms ……… 11
Performance of Securities Industry … 14
Securities Market in 2008
Economic Overview
Looking back on 2008, the Japanese economy was not overly affected by the sub-prime loan problem that arose in summer 2007. However, amid the global spread of the fi nancial crisis, the economy did enter a serious recession in the second half of 2008 due to a sharp appreciation of the yen against other currencies in anticipation of the relatively minor eff ect of the crisis in Japan and to the ensuing so-called Lehman shock. Against this backdrop, real gross domestic product (GDP) contracted 0.3% year on year in the third quarter, falling into the negative column for the fi rst time since the second quarter of 2002. Domestic and public demand also began recording negative year on year growth, starting in the fi rst quarter and the second quarter, respectively.
Moreover, net exports contracted 2.7% compared with the fourth quarter a year earlier, exhibiting minus growth for the fi rst time since the fi rst quarter of 2005. Exports to Asia and transportation equipment for the United States were down in particular.
Ɉɐɉɋ Ɉɏɉɋ ɈɎɉɋ Ɉɍɉɋ ɈɌɉɋ ɋ Ɍɉɋ ɍɉɋ Ɏɉɋ ɏɉɋ ɐɉɋ
Real GDP Growth Rate
Real GDP Growth Rate
Net Exports Public Demand Private Demand Real GDP
（％）
(Quarterly) Note: Data is year-on-year comparison.
Source: Cabinet Office
ıĵ ıĶ ıķ ıĸ ıĹ
Affected by the global economic slowdown triggered by the Lehman shock, fiscal 2008 current profit of all industries fell ¥18,270 billion from fiscal 2007, to ¥35,462.3 billion. By industry category, profi t declines were most notable in the non-food manufacturing sector, such as in the oil and coal, electrical machinery, and information technology (IT) equipment industries.
The current profit to sales ratio was 2.4%, sliding 1.0% from the previous fi scal year and falling below 3.0% for the fi rst time since fi scal 2003.
ɋ Ɍɋ ɍɋ Ɏɋ ɏɋ ɐɋ ɑɋ
Ɍɉɋ Ɍɉɐ ɍɉɋ ɍɉɐ Ɏɉɋ Ɏɉɐ ɏɉɋ
(Trillion yen) （％）
(FY) Source: Ministry of Finance
Corporate Profits (all industries, all scales of businesses)
Current Profits (left scale)
Current Profit to Sales Ratio (right scale)
Corporate Profits (all industries, all scales of businesses)
ıĵ ıĶ ıķ ıĸ ıĹ
Securities Market in 2008
After positing negative growth for six consecutive years from 2000 to 2005 under deflationary conditions, the Consumer Price Index (CPI) had turned slightly positive in 2006. In 2008, in addition to the impact of soaring costs for oil and other natural resources, an overall price hike in food products helped push the CPI up 1.5% from a year earlier.
Similarly, the Corporate Goods Price Index (CGPI) rose 1.0%, primarily because of the sharp increase in international commodity prices.
However, with demand continuing to be weak under the global economic recession, commodity prices began to soften at the end of 2008.
Ɉɍɉɋ ɈɌɉɐ ɈɌɉɋ Ɉɋɉɐ ɋɉɋ ɋɉɐ Ɍɉɋ Ɍɉɐ （％）
(CY) Note: Data is annual average.
Sources: Ministry of Internal Affairs and Communications, Bank of Japan
Consumer Price Index (excluding fresh food) Corporate Goods Price Index (final consumer goods)
Consumer Price and Corporate Goods Price Indices
Consumer Price and Corporate Goods Price Indices
ıĵ ıĶ ıķ ıĸ ıĹ
Although the unemployment rate declined for five consecutive years during the period from 2003 to 2007, it began to climb again in 2008 due to the deterioration in employment conditions under the global economic slowdown triggered by the financial crisis in the United States, rising 0.1%, to 4.0%. Among reasons given by job seekers for not being employed, “the desired type of work or job conditions are not available” or “even on an unconditional basis, work is not available” increased.
While the job-off ers to seekers ratio in 2008 had exceeded 1.00 for consecutive years in 2006 and 2007, the ratio again dropped below 1.00 in 2008, sinking to 0.88.
ɋ Ɍɉɋ ɍɉɋ Ɏɉɋ ɏɉɋ ɐɉɋ ɑɉɋ ɒɉɋ
ɋɉɋ ɋɉɍ ɋɉɏ ɋɉɑ ɋɉɓ Ɍɉɋ Ɍɉɍ
（％） (Ratio (Times))
(CY) Note: Data is annual average and seasonally adjusted. Sources: Ministry of Internal Affairs and Communications, Ministry of Health, Labour and Welfare
Employment Conditions
Employment Conditions
ıĵ ıĶ ıķ ıĸ ıĹ
Securities Market in 2008
Stock Market
In 2008, the stock market moved lower during the second half against a backdrop of surging oil prices, successive failures by financial institutions around the world, the appreciation of the yen, and other factors. After hitting its lowest point since the bursting of the financial bubble on October 27, at ¥7,162.90, the Nikkei 225 Stock Average recovered slightly on the strength of successive implementation of economic stimulus and fi nancial policies by major countries, closing the year at ¥8,859.56. The year-on-year loss of 42.1% marked the largest post-World War II decline in the index.
The slump in stock prices that has been in eff ect since the January 2006 Livedoor scandal continued in the start-up market. The Nikkei Jasdaq Average Price hit ¥1,031.16, its low for the year, on October 10, and ended the year at ¥1,092.10. Down 36.9% on the year, the Nikkei Jasdaq Average Price logged its second consecutive year of decline, similar to the Nikkei 225 Stock Average.
ı ijııı ĵııı ķııı Ĺııı IJıııı IJijııı IJĵııı IJķııı IJĹııı ijıııı
ıĵ ıĶ ıķ ıĸ ıĹ IJııı
IJĶıı ijııı ijĶıı Ĵııı ĴĶıı ĵııı ĵĶıı (Yen) (Yen) (CY)
Stock Price
Stock Price
Source: Nihon Keizai Shimbun
Nikkei 225 Stock Average (daily average, left scale) Nikkei Jasdaq Stock Average (daily average, right scale)
The daily average stock trading value of the 1st Section of the Tokyo Stock Exchange increased for fi ve consecutive years during the period from 2003 to 2007. However, this trend reversed in 2008, with the figure retreating to ¥2,320.5 billion. The daily average stock trading value of Jasdaq Securities Exchange recorded its second consecutive year of major decline, falling 59%, to ¥18.09 billion.
One of the major factors behind these large contractions in markets was the sharp drop in trading, especially by foreign investors, caused by the turmoil in global fi nancial markets following the September 2008 Lehman shock triggered by the sub-prime loan problem. ɋɉɋ
ɋɉɏ ɋɉɓ Ɍɉɍ Ɍɉɑ ɍɉɋ ɍɉɏ ɍɉɓ Ɏɉɍ Ɏɉɑ ɏɉɋ ɋ Ɍɋ ɍɋ Ɏɋ ɏɋ ɐɋ ɑɋ ɒɋ ɓɋ ɔɋ Ɍɋɋ
(Trillion yen) (Billion yen)
(CY) Note: Jasdaq Securities Exchange figures 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 figures have been included since November 13, 2007. Sources: Tokyo Stock Exchange, Jasdaq Securities Exchange
TSE 1st Section (left scale) Jasdaq Securities Exchange (right scale)
Daily Average Stock Trading Value of TSE
(1st Section) and Jasdaq
Daily Average Stock Trading Value of TSE
(1st Section) and Jasdaq
Securities Market in 2008
In 2008, equity financing (paid-in capital increase) by publicly listed companies totaled ¥1,479.2 billion, declining for the third consecutive year since 2006.
Looking at issuing categories, reflecting the stagnation in the equity market, public off erings decreased ¥148.9 billion from last year, to ¥362.1 billion, while private placements (included preferred stocks, etc.) slid ¥509.4 billion year on year to ¥1,116.9 billion.There was no equity finance through allotments to shareholders conducted in 2008.
ı ij ĵ ķ Ĺ IJı IJij (Trillion yen) (CY) Notes: 1. Private placements and others include private placements.
2. Jasdaq Securities Exchange figures 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 figures have been included since November 13, 2007. 3. Nasdaq Japan market figures are included for the period from June 19, 2000 to December 15. 2002. Hercules market figures have been included since December 16, 2002. Sources: Tokyo Stock Exchange, Osaka Securities Exchange, Jasdaq Securities Exchange
Equity Financing (paid-in capital increase) by Corporations
Public Offerings Rights Offerings
Private Placements and Others
Equity Financing (paid-in capital increase) by Corporations
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
In 2008, companies going public fell significantly for the second consecutive year, declining to 48 companies. This fi gure was less than half the 117 listing carried out in 2007. Total capital raised through IPOs also dropped for the second year in a row, contracting 76.0%, to ¥43.2 billion.
Reasons behind these results include stricter screening of listing companies by exchanges, increased cost burdens under the revised Financial Instruments and Exchange Act. In addition, there was a movement away from new listing stock, especially for start-up companies, among investors due to a decline in confidence in new listings, particularly in the start-up market, because of the discovery of cases where the listing screenings and the management structure of the listed companies
ıįı ıįĴ ıįķ ıįĺ IJįij ı Ķı IJıı IJĶı ijıı ijĶı (Trillion yen) (Companies) (CY) Notes: 1. IPOs include public offerings by foreign companies when listing on Japanese markets.
2. Jasdaq Securities Exchange figures 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 figures have been included since November 13, 2007.
Source: Japan Securities Dealers Association
Number of Newly Listed Companies and IPO Amounts
Number of Newly Listed Companies and IPO Amounts
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
IPO Amounts (right scale)
Securities Market in 2008
Bond Market
Overall, from 2007 to October 2008, the short-term interest rate was extremely stable around the 0.5% level. However, the BOJ’s Policy Board and Monetary Policy Meeting lowered the guiding target level to 0.3% in October, having decided that it was essential to ensure stability in Japan’s fi nancial markets given the notable rise in tension in international fi nancial and capital markets. Following this measure, the Monetary Policy Meeting again reduced the guiding target level in December 2008, to 0.1%. Up to mid-April 2008, the long-term interest rate continued the downward trend carried over from the previous year in reaction to poor U.S. economic indicators. After that, the long-term rate rose sharply on the strength of expectation of interest rate increases domestically and overseas and infl ation concerns, testing 1.9% at one point in June. After this rally, the long-term interest rate fell back down to 1.1% by year end due to buy backs in the market amid the growing uncertainty about the direction of the economy, lowering of interest rates and the introduction of
supplemental fi scal measures by the BOJ and the government. ıįı ıĵ ıĶ ıķ ıĸ ıĹ ıįIJ
ıįij ıįĴ ıįĵ ıįĶ ıįķ ıįĸ ıįĹ ıįĺ IJįı
IJįı IJįĶ ijįı ijįĶ
（％） （％）
(CY)
Long-term and Short-term Interest Rates
Call Rates
(uncollateralized overnight, left scale) Simple Yield of Newly Issued 10-year JGB (daily average, right scale)
Long-term and Short-term Interest Rates
Sources: Bank of Japan, Japan Securities Dealers Association
In 2008, the total OTC bond trading volume (including Repos) declined 6.6% year on year, to ¥11,288.1 trillion. Within this amount, the trading volume of JGBs decreased 6.4%, to ¥11,118.4 trillion. Super-term and long-term JGBs with long-terms of 10 years or more edged down 0.7% from a year earlier, to ¥6,098.0 trillion.
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ ı
ijı ĵı ķı Ĺı IJıı IJijı IJĵı
(Hundred trillion yen)
(CY) Note: Short-term JGBs are the total of financial bills and treasury bills. Source: Japan Securities Dealers Association
OTC Bond Trading (including Repos)
Short-term JGBs Super-long-term,
Long-term, Medium-term JGBs Others
Securities Market in 2008
In 2008, corporate bond financing in the Japanese market increased 4.1% from last year, to ¥9.7 trillion.
Corporate straight bond issuance contracted 1.4%, to ¥9.1 trillion. In contrast, issuance of convertible-type bonds with subscription rights expanded 5.1 times to ¥0.6 trillion.
ı ij ĵ ķ Ĺ IJı IJij IJĵ (Trillion yen)
(CY) Notes: 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
Corporate Bond Financing
Straight Corporate Bonds Convertible-type Bonds with Subscription Rights
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Corporate Bond Financing
In 2008, public and corporate bond issuance declined 10.2% from a year earlier, to ¥158.5 trillion. The major category of JGB issuance slipped 10.4%, to ¥125.7 trillion. Among other issuance categories, municipal bonds fell 2.9%, to ¥5.8 trillion; government-guaranteed bonds rose 0.7%, to ¥4.4 trillion; Fiscal Investment and Loan Program (FILP) agency bonds decreased 1.8%, to ¥4.4 trillion; and straight corporate bonds decreased 3.7%, to ¥8.8 trillion.
Looking at the composition of bond issuance by volume, the breakdown was as follows: JGBs, 79.3%; municipal bonds, 3.7%; government-guaranteed bonds, 2.8%; FILP agency bonds,
2.8%; and straight corporate bonds, 5.8%. Notes: 1. The issuing amounts of JGBs refer to the amounts sold in the market. 2. Excluding private placement municipal bonds. 3. Straight Corporate Bonds include asset backed bonds.
Source: Japan Securities Dealers Association
Composition of Bond Issuance, etc.
JGBs
Municipal Bonds Gov.-guaranteed Bonds
FILP Agency Bonds Straight Corporate Bonds Others
ĸĺįĴɓ Ķįķɓ
ĶįĹɓ ijįĹɓ
ijįĹɓ
Ĵįĸɓ
Securities Market in 2008
Investment Trust
At the end of 2008, the net assets of investment trusts amounted to ¥81,670.1 billion, down ¥37.808.1 billion from 2007 against a backdrop of falling stock market aff ected by the fi nancial crisis, the appreciation of yen, and other factors. Since the last decline came in 2002, it was the fi rst contraction of net assets in six years.
Looking at a breakdown of net assets, publicly offered investment trusts accounted for ¥52,146.4 billion, real-estate investment trusts contributed ¥3,968 billion, and private placement trusts totaled ¥25,555.7 billion.
ı ijı ĵı ķı Ĺı IJıı IJijı (Trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Investment Trusts
Publicly Offered Investment Trusts Real-estate Investment Trusts Private Placement Investment Trusts
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Net Assets Held in Investment Trusts
Among publicly offered contractual-type securities investment trusts, net assets of stock investment trusts fell for the first time in eight years to ¥40,842.1 billion, losing ¥25,942.3 billion compared with a year earlier.
Bond investment trusts continued their decline for the third consecutive year since the end of 2006. Net assets shed ¥1,367.5 billion, declining to ¥8,691.5 billion.
Net assets of MMFs decreased ¥304.3 billion year on year, to ¥2,612.7 billion.
ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı （Trillion yen）
（End of CY） Source: The Investment Trusts Association
Net Assets Held in Publicly Offered
Contractual-type Securities Investment Trusts
Stock Investment Trusts Bond Investment Trusts Money Management Funds
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Securities Market in 2008
Among publicly off ered contractual-type stock investment trusts, net assets of unit-type trusts amounted to ¥1,287.8 billion, down ¥588.3 billion from the previous year.
Net assets held in open type trusts (excluding ETFs) fell for the first time since 2002̶a period of six years. Falling ¥23,999.9 billion from 2007, net assets dropped to ¥37,029.8 billion.
Totaling ¥2,524.5 billion, ETFs contracted ¥1,354.1 billion year on year.
ı IJı ijı Ĵı ĵı Ķı ķı ĸı (Trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Publicly Offered
Contractual-type Stock Investment Trusts
Unit Type
Open Type (excluding ETFs) ETFs
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Net Assets Held in Publicly Offered
Contractual-type Stock Investment Trusts
Among private placement contractual-type securities investment trusts, net assets of stock investment trusts decreased ¥10,438.8 billion from last year, to ¥24,967.9 billion. It was the fi rst time this net asset class had declined since 1999, or nine years.
Net assets of bond investment trusts continued their downward slide for the fifth consecutive year since 2004. At ¥587.8 billion, this category dropped ¥36.1 billion from 2007.
ı Ķ IJı IJĶ ijı ijĶ Ĵı ĴĶ ĵı (Trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Private Placement
Contractual-type Investment Trusts
Stock Investment Trusts Bond Investment Trusts
ıIJ ıij
ĺĺ ıı ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Securities Market in 2008
Investor Trends
Among institutional investors, life and non-life insurance companies and pension funds reduced their investments in securities in fi scal 2008. Compared with a year earlier, they cut securities investments by ¥2,163.7 billion, to ¥1,754.3 billion.
By category, the amount put into securities other than stocks fell for the fourth year running, dropping ¥851.5 billion in fi scal 2008. Conversely, investments in stocks and other equities grew for the third consecutive year since fi scal 2006, expanding by ¥190.4 billion year on year, to ¥2,173.2 billion. Investments in foreign securities also increased from a year earlier, rising to ¥1,955.3 billion̶a net addition
of ¥432.6 billion. ĮIJı
ĮĶ ı Ķ IJı IJĶ ijı （Trillion yen）
（FY） Source: Bank of Japan
Investments by Institutional Investors
(Insurance Companies and Pension Funds)
ıĵ ıĶ ıķ ıĸ ıĹ
Investments by Institutional Investors
(Insurance Companies and Pension Funds)
Securities Other than Stocks Stocks and Other Equities Foreign Securities
Individual investors also reduced their investments in securities, cutting back total securities investment by ¥7,145.1 billion from fi scal 2007, to ¥6,247.6 billion.
By category, investments in securities other than stocks fell drastically from the more than ¥10 trillion recorded last year, declining to ¥786.2 billion in fiscal 2008. On the other hand, investment in stocks and other equities amounted to ¥1,222.6 billion, recovering to a net increase after three consecutive years of year-on-year declines since 2005. Investments in foreign securities registered a three-year growth streak that has continued since 2006, rising to ¥4,238.8 billion.
ĮIJı ĮĶ ı Ķ IJı IJĶ (Trillion yen)
(FY) Source: Bank of Japan
Investments by Individual Investors (Household)
ıĹ ıĸ
ıĵ ıĶ ıķ
Investments by Individual Investors (Household)
Securities Market in 2008
Household financial assets at the end of March 2009 decreased for the third consecutive year since 2006, contracting ¥54.0 trillion, to ¥1,410.4 trillion.
Looking at the breakdown, stocks and other equities declined for the second successive year, sinking to ¥79.7 trillion, and only accounted for 5.6% of overall household fi nancial assets. The dramatic decline can be attributed to the substantial drop in stock prices because of soaring oil prices and the successive turmoil in the world’s financial markets. Investments in investment trusts and in bonds also dropped.
In contrast, cash and deposits increased for the third consecutive year, surging ¥11.1 trillion, to ¥786.5 trillion and accounting for 55.8% of overall household financial assets. These results suggest that households reduced their exposure to risky assets and placed more emphasis on low risk, secure assets.
ı ijı ĵı ķı Ĺı IJıı （%）
(End of FY)
Note: Bonds include trust beneficiary rights. Source: Bank of Japan
Composition of Household Financial Assets
Cash and Deposits Investment Trusts
Bonds
Insurance and Pension Reserves
Stocks and Other Equities Others
ıĶ
ıĵ ıķ ıĸ ıĹ
Composition of Household Financial Assets
According to a stockholding survey at the end of March 2009, all investment sectors have declined for three consecutive year since fi scal 2006, with total investment assets contracting 35% in fi scal 2008, to ¥260.2 trillion. The backdrop to this decline was the large fall in stock prices resulting from the turmoil in global fi nancial markets, triggered in particular by the Lehman shock in September 2008.
Looking at year-on-year changes in the proportion of stockholdings, although holdings by foreigners dropped sharply by 4.0% from a year earlier, individuals and business corporations were net buyers for the second year in a row. Individuals were increasing their holdings because of the sense that stocks were selling at a discount, while business corporations were taking advantage of market conditions to implement share buybacks.
ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı IJıı （%）
(End of FY)
Notes: 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.
Source: Tokyo Stock Exchange
Stockholdings by Type of Investors (market value basis)
Individuals Pension Trusts Business Corporations Governments Investment Trusts Foreigners Financial Institutions Insurance Companies Securities Firms
ıķ ıĸ ıĹ
ıĶ ıĵ
Member Firms
Number of Member Firms
As of March 31, 2009, the number of regular members (securities fi rms) totaled 321, increasing by 4 from a year earlier primarily due to new members’enrollment.
ɍɏɋ ɍɐɋ ɍɑɋ ɍɒɋ ɍɓɋ ɍɔɋ Ɏɋɋ ɎɌɋ Ɏɍɋ ɎɎɋ
ĮIJĶ ĮIJı ĮĶ ı Ķ IJı IJĶ ijı ijĶ Ĵı
(End of FY) Note: Figures for all years are at March 31.
Source: Japan Securities Dealers Association
Regular Members
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Regular Members
Enrollment and Withdrawal (left scale)
Regular Members (right scale)
The number of special members as of the end of March 2009 was 223, increasing by 3 from last year. A breakdown by categories shows 6 city banks (unchanged), 15 trust banks (down by 1), 64 regional banks (unchanged), 44 second-tier regional banks (down by 1), 38 shinkin banks (up by 1), 12 life insurance companies (unchanged), 8 non-life insurance companies (down by 2) and 15 foreign banks (up by 3), and others.
ı Ķı IJıı IJĶı ijıı ijĶı Ĵıı
(End of FY) Note: Figures for all years are at March 31.
Source: Japan Securities Dealers Association
City Banks and Trust Banks Regional Banks Second-tier Regional Banks Shinkin Banks Life Insurance Companies Non-Life Insurance Companies Other
Special Members by Category
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Special Members by Category
Member Firms
Securities Firms' Employees
At December 31, 2008, the number of employees was approximately the same as the year before, at 99,000.
ĸĶ Ĺı ĹĶ ĺı ĺĶ IJıı IJıĶ (Thousands)
(End of CY) Source: Japan Securities Dealers Association
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Number of Securities Firms’ Employees
Number of Securities Firms’ Employees
Securities Firms' Domestic Offices
As of the end of March 2009, securities firms had 1,575 domestic branches, up 14 branches from the prior fi scal year. The number of business offi ces was 419, up one offi ce from a year earlier.
The number of domestic offices including head offi ces increased by 19 offi ces, to 2,315, rising for the fi fth consecutive year.
ı Ķıı IJııı IJĶıı ijııı ijĶıı
（End of FY） Branches
Head Office Business Offices
Securities Firms’ Domestic Offices
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
Member Firms
Securities Sales Representatives
A t D e c e m b e r 3 1 , 2 0 0 8 , t h e r e w e r e approximately 435,000 securities sales representatives, an increase of about 5,000 sales representatives year on year. The number of securities sales representatives belonging to securities firms was 81,000, approximately the same as in the previous year. The number of securities sales representatives belonging to registered fi nancial institutions was 354,000, an increase of about 5,000 sales representatives from a year earlier.
ı Ķı IJıı IJĶı ijıı ijĶı Ĵıı ĴĶı ĵıı (Thousands)
(End of CY) Source: Japan Securities Dealers Association
Securities Sales Representatives
Regular Members Special Members
ıĶ
ıĵ ıķ ıĸ ıĹ
Securities Sales Representatives
Securities Sales Representatives of Financial
Instruments Intermediary Service Providers
At December 31, 2008, fi nancial instruments intermediary service providers had 101,000 securities sales representatives, an increase of 581 sales representatives year on year.
By member category, financial instruments intermediary service providers affiliated with regular members had about 2,000 securities sales representatives, roughly the same as a year earlier. Those affiliated with special members had about 99,000 securities sales representatives, up by 1,000 sales representatives from the prior year.
*These figures do not include individual financial
instruments intermediary service providers. ɋ
ɍ ɏ ɑɋ ɓɋ Ɍɋɋ (Thousands)
(End of CY) Notes:1. Recording of figures begun as of end of 2005.
2. Excluding Individual Financial Instruments Intermediary Service Providers.
Number of Securities Sales Representatives of
Financial Instruments Business Operators
Regular Members Special Members
Number of Securities Sales Representatives of
Financial Instruments Business Operators
ıķ ıĸ ıĹ
P
erformance of Securities Industry
Operating Revenues of Member Securities Firms
In the fi scal year 2008 ended March 2009, total operating revenues of the overall industry (315 securities firms*) amounted to ¥3,156.4 billion, declining ¥1,426.4 billion from the previous year.
The decrease in revenues could be attributed to various repercussions from the global fi nancial crisis. In the fi rst half, the impact of the sub-prime loan problem that had been ongoing since the previous fiscal year and other factors caused stagnation in the stock market and weak sales of investment trusts. In the second half, business conditions deteriorated even further as stock markets dropped sharply aff ected by the global fi nancial crisis triggered by the Lehman shock.
Operating revenues were down across the board compared with fi scal 2007. Commissions sunk ¥1,032.5 billion, or 36%, to ¥1,797.7 billion, while trading gain dropped ¥144.1 billion, or 25%, to ¥435.1 billion. Financial revenues fell ¥289.1 billion, or 25%, to ¥860.9 billion. * While there were a total of 321 securities fi rms at the end of March
2009, 6 domestic securities fi rms under business suspension were excluded from industry fi gures.
ı IJįı ijįı Ĵįı ĵįı Ķįı ķįı (Trillion yen)
(FY ended)
Operating Revenues of Member Securities Firms
ıĴįĴ ıĵįĴ ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ ıĺįĴ ııįĴ ıIJįĴ ıijįĴ
Note: Securities firms that were not in business as of the end of March in each year are excluded.
Source: Japan Securities Dealers Association
Operating Revenues of Member Securities Firms
Commission Trading Gain Financial Revenue
Operating Expenses of Member Securities Firms
Operating expenses for the fiscal year 2008 ended March 2009 decreased ¥535.5 billion, or 13%, to ¥3,467.2 billion. Among operating expenses, transaction expenses fell ¥57.9 billion, or 10%, to ¥523.4 billion; employment cost declined ¥267.7 billion, or 19%, to ¥1,122.3 billion; and real estate and equipment expenses contracted ¥5.3 billion, or 2%, to ¥319.9 billion. On the other hand, data processing and office supplies expenses rose ¥5.4 billion, or 1%, to ¥424.7 billion. As a whole, selling and general administrative costs declined ¥361.7 billion, or 12%, to ¥2,761.9 billion. Along with the reduction in financial revenue, financial expenses also fell, dropping ¥173.8 billion, or 20%, to ¥705.2 billion.
ı ıįĶ IJįı IJįĶ ijįı ijįĶ Ĵįı ĴįĶ (Trillion yen)
(FY ended) Note: Securities firms that were not in business as of the end of March in each
Operating Expenses of Member Securities Firms
Transaction Expenses
Real Estate & Equipment Costs
Financial Expenses Employment Cost
Data Processing & Office Supplies Costs
ıIJįĴ ıijįĴ ıĴįĴ ıĵįĴ ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ ıĺįĴ ııįĴ
Operating Expenses of Member Securities Firms
P
erformance of Securities Industry
Current Profits/Losses of Member Securities Firms
In fiscal 2008 ended March 2009, the industry recorded a current loss of ¥243.5 billion, falling a substantial ¥901.4 billion from the current profi ts posted in the previous fi scal year.
Įıįĵ Įıįij ı ıįij ıįĵ ıįķ ıįĹ IJįı IJįij IJįĵ IJįķ IJįĹ (Trillion yen)
(FY ended) 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 Profits/ Losses of Member Securities Firms
ıĸįĴ
ıķįĴ ıĹįĴ ıĺįĴ ıĶįĴ
ıĵįĴ ıĴįĴ ıijįĴ ıIJįĴ ııįĴ
Current Profits/ Losses of Member Securities Firms
Net Income/Loss and ROE of Member Securities Firms
Member securities firms registered a loss of ¥346.3 billion, further deterioration of ¥200.5 billion from the loss posted in fiscal 2007. Return on equity (ROE) was -5.4%, declining a further 3.3 percentage points from the -2.1% recorded in the previous fi scal year.
ĮIJįı ĮıįĶ ıįı ıįĶ IJįı IJįĶ ijįı
ĮIJı ĮĶ ı Ķ IJı IJĶ ijı (Trillion yen)
(FY ended) （%）
Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded.
Net Income/ Loss and ROE of Member Securities Firms
ııįĴ ıIJįĴ ıijįĴ ıĴįĴ ıĵįĴ ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ ıĺįĴ
Net Income/ Loss and ROE of Member Securities Firms
P
erformance of Securities Industry
Net Income/Loss by Type of Member Securities Firms
Looking at net income by firm category for the fi scal year 2008 ended March 2009, each category recorded losses. Although major securities firms still posted a loss of ¥110 billion, this fi gure represented a ¥157.7 billion improvement over fiscal 2007. The losses of foreign securities firms decreased a further ¥68.1 billion, to ¥76.6 billion while other domestic securities fi rms also lost ground, with losses increasing ¥159.6 billion, to ¥290.1 billion.
Įĵıı ĮĴıı Įijıı ĮIJıı ı IJıı ijıı Ĵıı ĵıı Ķıı ķıı
Major Firms Foreign Firms Other Domestic Firms
(Billion yen)
(FY ended) 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 Inc., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more Source: Japan Securities Dealers Association
Net Income/Loss by Type of Member Securities Firms
ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ ıĺįĴ
Net Income/Loss by Type of Member Securities Firms
ROE by Type of Member Securities Firms
Looking at ROE by fi rm category for the fi scal year 2008 ended March 2009, the ROE of major securities fi rms was -4.4%, but improved 5.3 percentage points from the previous fiscal year. The ROE of foreign securities firms plunged 333.0 percentage points from fiscal 2007, to -358.6%, while the ROE of the rest of domestic securities firms declined 7.3 percentage points, to -4.1%
Įĵıı ĮĴıı ĮĶı Įĵı ĮĴı Įijı ĮIJı ı IJı ijı Ĵı ĵı Ķı
Major Firms Foreign Firms Other Domestic Firms
（％）
(FY ended) Notes: 1. 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.
3. Major securities firms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more
Source: Japan Securities Dealers Association
ROE by Type of Member Securities Firms
ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ ıĺįĴ
Statistical Data
◉
Real GDP Growth Rate
（％）
Quarterly Real GDP Growth Rate
(Year-on-year comparison) Private Demand Public Demand Net Exports
1999 1Q -0.3 -2.1 1.8 0.0 2Q 0.2 -1.1 1.5 -0.3 3Q -0.2 -1.3 1.1 -0.1 4Q -0.2 0.0 0.0 -0.1 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 3.4 2.7 -0.3 0.9 2Q 2.2 1.1 0.1 1.1 3Q 1.9 0.8 -0.1 1.2 4Q 1.9 0.1 0.4 1.4 2008 1Q 1.3 -0.2 0.1 1.4 2Q 0.6 -0.5 -0.3 1.4 3Q -0.3 -0.9 -0.2 0.8
Statistical Data
Securities Market in 2008
Statistical Data
◉
Corporate Profi ts (all industries, all scales of businesses)
FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Current Profi ts
(trillion yen) 26.9 35.8 28.2 31.0 36.1 44.7 51.6 54.3 53.4 35.4 Current Profi t to
Sales Ratio(%) 1.9 2.5 2.1 2.3 2.7 3.1 3.4 3.5 3.4 2.4 Source：Ministry of Finance
◉
Consumer Price and Corporate Goods Price Indices
（％） CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Consumer Price Index
(excluding fresh food) 0.0 -0.5 -0.8 -0.9 -0.3 -0.1 -0.1 0.1 0.0 1.5 Corporate Goods Price Index
(fi nal consumer goods) -1.4 -1.3 -1.4 -1.9 -1.6 -0.6 0.0 -0.2 0.2 1.0 Note：Figures are annual average.
Sources：Ministry of Internal Aff airs and Communications, Bank of Japan
◉
Employment Conditions
CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Unemployment Rate
(%) 4.7 4.7 5.0 5.4 5.2 4.7 4.4 4.1 3.9 4.0 Job-off ers to Seekers Ratio (excluding new school
graduates but including part-time workers) (Ratio (Times)) 0.48 0.59 0.59 0.54 0.64 0.83 0.95 1.06 1.04 0.88 Note：Figures are annual average and seasonally adjusted.
Sources：Ministry of Internal Aff airs and Communications, Ministry of Health, Labour and Welfare
◉
Daily Average Stock Trading Value of TSE (1st Section) and Jasdaq
(billion yen) CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
TSE 1st Section 726 978 812 775 971 1,316 1,874 2,598 3,001 2,320 Jasdaq Securities
Exchange 49 46 20 14 25 51 79 93 44 18 Note： Jasdaq Securities Exchange fi gures 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 fi gures have been included since November 13, 2007.
Sources：Tokyo Stock Exchange, Jasdaq Securities Exchange
Statistical Data
◉
Equity Financing (paid-in capital increase) by Corporations
(billion yen) CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Public Off erings 527 796 1,372 223 653 994 884 1,659 511 362 Rights Off erings ー 10 32 ー 2 11 4 3 9 ー Private Placements and Others 9,531 1,223 847 1,566 2,808 2,150 2,509 1,220 1,626 1,116
Total 10,059 2,030 2,252 1,789 3,464 3,156 3,397 2,883 2,147 1,479 Notes： 1． Private placements and others include private placements.
2. “-“ indicates nil.
3． Jasdaq Securities Exchange fi gures 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 fi gures have been included since November 13, 2007.
4． Nasdaq Japan market figures are included for the period from June 19, 2000 to December 15. 2002. Hercules market fi gures have been included since December 16, 2002.
Sources：Tokyo Stock Exchange, Osaka Securities Exchange, Jasdaq Securities Exchange
◉
Number of Newly Listed Companies and IPO Amounts
CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Number of Newly Listed Companies 106 203 168 123 118 171 157 181 117 48 IPO Amounts
(billion yen) 354 941 368 147 347 421 402 594 176 43 Notes： 1． IPOs include public off erings by foreign companies when listing on Japanese markets.
2． Jasdaq Securities Exchange fi gures 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 fi gures have been included since November 13, 2007.
Source: Japan Securities Dealers Association
◉
OTC Bond Trading (Including Repos)
(trillion yen) CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total 3,836.7 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 JGBs 3,734.1 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 Short-term JGBs 2,606.9 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 Super-long-term,
Long-term, Medium-term JGBs 1,127.0 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 Others 102.8 163.4 194.9 236.4 274.4 303.1 330.2 271.3 206.5 169.7 Note：Short-term JGBs are the total of fi nancial bills and treasury bills.
Source：Japan Securities Dealers Association
Statistical Data
◉
Corporate Bond Financing
(billion yen) CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Straight Corporate Bonds 7,498 8,276 8,609 7,736 7,728 5,879 7,088 6,858 9,258 9,125 Convertible-type Bonds
with Subscription Rights 592 357 300 427 72 561 889 1,424 127 653 Bonds with Subscription Rights − − − − − − − − − − Total 8,090 8,633 8,909 8,163 7,800 6,440 7,977 8,282 9,385 9,778 Notes：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.
Source: Japan Securities Dealers Association
◉
Composition of Bond Issuance, etc.
（％） CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
JGBs 70.4 71.3 77.1 81.3 80.8 82.2 81.9 83.3 79.5 79.3 Municipal Bonds 1.4 1.5 1.3 1.4 2.2 2.5 2.7 2.9 3.2 3.7 Gov.-guaranteed Bonds 2.0 3.3 2.8 2.3 3.4 3.9 3.4 2.1 2.5 2.8 FILP Agency Bonds − − 0.3 1.3 1.3 1.5 1.8 2.1 2.6 2.8 Straight Corporate Bonds 5.2 5.6 5.0 4.3 4.0 2.8 3.1 3.3 5.2 5.8 Others 21.0 18.3 13.6 9.4 8.2 7.2 6.9 6.4 6.9 5.6 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Notes：1． The issuing amounts of JGBs refer to the amounts sold in the market.
2． Excluding private placement municipal bonds. In 2008, the fi gures exclude private placement municipal bonds, private placement special bonds, and private placement bonds.
3． Straight Corporate Bonds include asset backed bonds.
◉
Amount of Bond Issuance
(billion yen) CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Statistical Data
◉
Net Assets Held in Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Publicly Off ered
Investment Trusts 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 79,760 52,146 Real-estate
Investment Trusts − − 236 441 766 1,246 2,050 3,153 3,687 3,968 Private Placement
Investment Trusts 1,544 3,693 6,106 7,381 10,384 15,596 25,643 32,987 36,030 25,555 Total 52,897 53,092 51,624 43,839 48,586 57,839 83,040 105,067 119,478 81,670 Source：The Investment Trusts Association
◉
Net Assets Held in Publicly Off ered Contractual-type Securities Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Stock Investment
Trusts 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 Bond Investment
Trusts 18,866 23,817 22,652 14,121 11,746 9,955 11,498 10,576 10,059 8,691 Money Management
Funds 16,790 10,971 7,722 5,521 4,350 3,606 3,020 2,693 2,917 2,612 Total 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 79,760 52,146 Source：The Investment Trusts Association
◉
Net Assets Held in Publicly Off ered Contractual-type Stock Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Unit Type 573 373 617 697 1,161 1,799 1,945 1,875 1,876 1,287 Open Type
(excluding ETF) 15,122 14,236 13,398 13,165 17,216 22,522 35,180 49,665 61,029 37,029 ETF − − 889 2,509 2,962 3,113 3,703 4,116 3,878 2,524 Total 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 Source：The Investment Trusts Association
◉
Net Assets Held in Private Placement Contractual-type Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Stock Investment
Trusts 1,240 3,185 5,040 6,469 9,388 14,646 24,723 32,186 35,406 24,967 Bond Investment
Trusts 303 507 1,066 911 995 949 919 800 623 587 Total 1,544 3,693 6,106 7,381 10,384 15,596 25,643 32,987 36,030 25,555 Source：The Investment Trusts Association
Statistical Data
◉
Investments by Institutional Investors (Insurance Companies and Pension Funds)
（billion yen） FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Securities Other
than Stocks 17,058 9,009 15,753 11,286 5,832 13,940 13,176 9,997 3,457 -851 Stocks and
Other Equities 329 6,069 1,685 788 -8,318 -2,633 -4,555 -483 1,982 2,173 Foreign
Securities 2,114 -447 4,428 4,112 7,055 3,592 4,313 840 -1,522 432 Source：Bank of Japan
◉
Investments by Individual Investors (Household)
（billion yen） FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Securities Other
than Stocks -2,062 4,021 -7,125 -6,676 -1,264 7,940 12,553 12,434 10,956 786 Stocks and
Other Equities 2,523 -1,627 -1,433 -31 -2,435 1,255 -2,085 -1,204 -1,434 1,222 Foreign
Securities 1,175 220 1,783 750 259 -374 -1,202 -41 3,870 4,238 Source：Bank of Japan
◉
Household Financial Assets
（billion yen） End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Cash and
Deposits 744,738 751,429 765,432 765,661 772,284 772,492 768,648 769,074 775,365 786,498
Bonds 50,571 48,116 41,834 34,580 32,258 37,274 40,395 43,250 44,313 42,925
Stocks and Other
Equities 138,342 107,437 85,389 72,108 117,500 133,572 197,339 200,792 119,744 79,657 Investment
Trusts 31,917 33,922 30,434 27,999 33,047 36,584 52,166 64,717 63,046 47,243 Insurance
and Pension
Reserves 369,871 377,624 379,042 376,970 377,497 382,243 391,163 400,558 402,641 397,335
Others 65,670 70,265 69,004 79,450 75,898 64,942 66,882 65,317 59,413 56,781
Total 1,401,111 1,388,794 1,371,138 1,356,771 1,408,487 1,427,110 1,516,597 1,543,709 1,464,525 1,410,443
Source：Bank of Japan
Statistical Data
◉
Stockholdings by Type of Investors (market value basis)
（billion yen） End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Individuals 82,988 68,934 61,033 48,679 75,599 78,197 109,466 102,833 72,947 52,209 Governments 555 560 533 538 789 717 972 1,863 1,564 1,135
Financial
Institutions 85,872 70,551 61,797 47,553 67,554 66,781 93,114 87,042 59,430 42,263 Pension
Trusts 23,184 19,652 18,696 13,630 16,581 15,269 20,706 20,054 14,054 9,291 Investment
Trusts 10,218 9,877 10,302 9,384 13,602 14,857 25,026 26,497 19,503 13,212 Insurance
Companies 49,240 38,535 31,687 21,988 29,566 29,255 42,439 43,281 30,754 19,573 Business
Corporations 120,125 77,469 67,578 50,789 80,489 84,564 121,422 117,527 85,137 58,389 Foreigners 85,915 66,574 56,733 41,824 80,604 91,529 153,511 159,286 110,617 61,397
Securities
Firms 3,822 2,581 2,170 2,088 4,494 4,481 7,902 10,217 6,221 2,680 Total 461,923 354,737 310,533 236,476 369,281 385,653 574,560 568,605 400,231 260,153 Notes：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. Source：Tokyo Stock Exchange
◉
Composition of Household Financial Assets
（％） End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Cash and
Deposits 53.2 54.1 55.8 56.4 54.8 54.1 50.7 49.8 52.9 55.8 Bonds 3.6 3.5 3.1 2.5 2.3 2.6 2.7 2.8 3.0 3.0 Stocks and
Other Equities 9.9 7.7 6.2 5.3 8.3 9.4 13.0 13.0 8.2 5.6 Investment
Trusts 2.3 2.4 2.2 2.1 2.3 2.6 3.4 4.2 4.3 3.3 Insurance and
Pension Reserves 26.4 27.2 27.6 27.8 26.8 26.8 25.8 25.9 27.5 28.2 Others 4.7 5.1 5.0 5.9 5.4 4.6 4.4 4.2 4.1 4.0 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 benefi ciary rights.
Statistical Data
◉
Stockholdings by Type of Investors (market value basis)
（％） End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Individuals 18.0 19.4 19.7 20.6 20.5 20.3 19.1 18.1 18.2 20.1 Governments 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.4 0.4
Financial
Institutions 18.6 19.9 19.9 20.1 18.3 17.3 16.2 15.3 14.8 16.2 Pension
Trusts 5.0 5.5 6.0 5.8 4.5 4.0 3.6 3.5 3.5 3.6 Investment
Trusts 2.2 2.8 3.3 4.0 3.7 3.9 4.4 4.7 4.9 5.1 Insurance
Companies 10.7 10.9 10.2 9.3 8.0 7.6 7.4 7.6 7.7 7.5 Business
Corporations 26.0 21.8 21.8 21.5 21.8 21.9 21.1 20.7 21.3 22.4 Foreigners 18.6 18.8 18.3 17.7 21.8 23.7 26.7 28.0 27.6 23.6
Securities
Firms 0.8 0.7 0.7 0.9 1.2 1.2 1.4 1.8 1.6 1.0 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 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. Source：Tokyo Stock Exchange
◉
Regular Members
End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Regular
Members 296 293 290 281 266 267 289 308 317 321 Enrollment 34 23 19 18 8 7 30 33 22 25 Withdrawal 26 26 22 27 23 6 8 14 13 21
Notes：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.
Source：Japan Securities Dealers Association
Statistical Data
◉
Special Members by Category
End of FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
City Banks 9 9 7 7 7 7 6 6 6 6
Trust Banks 22 18 15 14 14 14 14 14 16 15 Government-affi liated
FinancialInstitutions 2 2 2 2 2 2 2 2 2 2 Regional Banks 64 64 64 64 64 64 64 64 64 64 Second-tier Regional Banks 60 57 56 53 50 48 47 46 45 44 Shinkin Banks 42 39 37 37 35 34 36 36 37 38 Shinkin Central Bank 0 0 1 1 1 1 1 1 1 1 Life Insurance Companies 20 20 19 18 17 17 16 16 12 12 Non-Life Insurance Companies 22 20 17 14 14 13 13 13 10 8 Money Market Brokers 6 6 3 3 3 3 3 3 3 3
Foreign Banks 5 5 5 4 4 5 9 8 12 15
Securities Finance Companies 1 1 1 1 1 1 1 1 1 2 Credit Cooperatives 0 0 0 0 0 0 2 2 2 3
Other Banks 3 3 4 4 4 6 4 4 9 10
Public Corporation 0 0 0 0 0 0 1 1 0 0 Total 256 244 231 222 216 215 219 217 220 223 Note：Other Banks include foreign trust banks and long-term credit banks.
Source：Japan Securities Dealers Association
◉
Number of Securities Firms’ Employees
（thousands） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Employees 92.0 94.7 96.6 89.2 85.0 86.4 87.9 92.6 99.1 99.2 Source：Japan Securities Dealers Association
◉
Securities Firms’ Domestic Offi ces
End of
FY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Head
Offi ce 296 293 290 281 266 267 289 308 317 321 Branches 1,753 1,731 1,683 1,565 1,511 1,529 1,514 1,534 1,561 1,575 Business
Statistical Data
◉
Number of Securities Sales Representatives
(thousands) End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Regular Members 69.8 72.8 75.1 72.0 67.5 69.2 71.9 76.0 81.2 81.1 Special Members 292.8 345.6 367.4 363.4 362.9 356.3 345.3 357.5 349.2 354.5
Source：Japan Securities Dealers Association
◉
Number of Securities Sales Representatives of Financial Instruments Business Operators
End of CY 2005 2006 2007 2008
Securities Sales Representatives of Financial Instruments Intermediary
Service Providers affi liated with Regular Members 1,144 1,870 2,134 2,056 Securities Sales Representatives of Financial Instruments Intermediary
Service Providers affi liated with Special Members 11 13 98,433 99,092 Note：Excluding Individual Financial Instruments Intermediary Service Providers.
Source：Japan Securities Dealers Association
◉
Operating Revenues of Member Securities Firms
（billion yen） FY ended 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Operating Revenues 3,795 3,213 2,505 2,386 3,294 3,388 4,911 4,686 4,582 3,156 Commission 2,791 2,018 1,669 1,469 2,046 2,221 3,195 2,956 2,830 1,797 Trading Gain 680 771 401 549 871 723 1,078 856 579 435 Financial Revenue 323 423 433 362 369 434 622 847 1,150 860 Note：Securities fi rms that were not in business as of the end of March in each year are excluded.
Source：Japan Securities Dealers Association
◉
Operating Expenses of Member Securities Firms
（billion yen） FY ended 2000. ３ 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Selling and General
Administration Costs 2,209 2,265 2,266 2,040 2,221 2,319 2,793 3,043 3,123 2,761 Transaction Expenses 406 390 352 328 379 422 536 586 581 523 Employment Cost 1,110 1,135 1,116 972 1,096 1,105 1,345 1,431 1,390 1,122 Real Estate & Equipment Costs 284 294 302 278 266 262 265 299 325 319
Data Processing &
Offi ce Supplies Costs 224 239 272 263 270 295 314 365 419 424 Financial Expenses 318 370 273 223 285 335 436 646 879 705
Note：Securities fi rms that were not in business as of the end of March in each year are excluded.
Statistical Data
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Current Profi ts/ Losses of Member Securities Firms
（billion yen） FY ended 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Current Profi ts/ Losses 1,254 589 -17 135 793 758 1,699 1,015 657 -243 Note：Securities fi rms that were not in business as of the end of March in each year are excluded.
Source：Japan Securities Dealers Association
◉
Net Income/Loss and ROE of Member Securities Firms
（billion yen） FY ended 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Net Income 392 287 -348 -169 508 483 1,136 588 -145 -346 ROE 6.8% 4.5% -6.0% -3.5% 10.1% 8.7% 17.7% 8.7% -2.1% -5.4% Notes：1． Securities fi rms that were not in business as of the end of March in each year are excluded.
2． ROE is after-tax profi ts divided by average stockholders equity. Source：Japan Securities Dealers Association
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Net Income/ Loss by Type of Member Securities Firms
（billion yen） FY ended 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Major Firms 206 249 -44 53 231 214 463 332 -267 -110 Foreign Firms 18 45 -93 -7 75 91 344 71 -8 -76 Other Domestic Firms 152 -8 -211 -215 201 177 328 183 130 -159 Notes：1． Securities fi rms that were not in business as of the end of March in each year are excluded.
2． Major securities fi rms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities fi rms capitalized at a hundred billion yen or more. Source：Japan Securities Dealers Association
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ROE by Type of Member Securities Firms
（％） FY ended 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
Major Firms 8.3 8.3 -1.7 2.7 11.0 9.3 18.2 10.9 -9.7 -4.4 Foreign Firms 2.5 5.5 -11.2 -0.9 9.4 10.8 38.2 31.7 -25.6 -358.6 Other Domestic Firms 8.2 -0.4 -9.1 -10.2 9.4 7.4 11.0 5.2 3.2 -4.1
Notes：1． Securities fi rms that were not in business as of the end of March in each year are excluded. 2． ROE is after-tax profi ts divided by average stockholders equity.
