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

(1)

(2)

Overview

1 Economy and Market Trends

3 1 Economic Overview

3 2 Stock Market

6 3 Bond Market

9 4 Investment Trusts

11 5 Derivative Market

13 6 Investor Trends

14 7 Household Financial Assets

16 Ⅰ

Securities Industry Overview

19

1 Number of Firms and Employed Persons

19

2 Performance Summary

23 Ⅱ

International Comparison

26 Ⅲ

(3)

Ⅰ

Economy and Market Trends

1 Economic Overview

The Japanese economy maintained a moderate recovery trend from 2016 to the 1st_{half of 2017.}

GDP proved solid with both nominal and real GDP showing positive growth rates for 5 consecutive quarters from Jan – March 2016.

Real GDP posted a 0.6% increase in the irst quarter of 2016 with contributions from personal consumption growth and others that were ramiications of leap year factors and the 2nd_quarter

saw a 0.3% growth with increased investments into housing with declining mortgage interest rates. The 3rd_{quarter resulted in a}

0.3% positive growth followed by the 0.4% positive growth in the 4th_{quarter with increase in exports against the backdrop of}

global economy showing stronger signs of recovery. The 1st

quarter of 2017 also posted a 0.4% growth with continuing trends of increasing exports.

Corporate earnings (ordinary proits) in FY 2016 remained at high levels throughout the year and reached a record high out of the last 16 years at ￥76,117.1 billion. Ordinary proits to sales also posted a 16-year high at 5.8％.

Consumer Price Index (CPI) was negative 0.3% year on year. This was the first time since 2013 when BOJ started its quantitative and qualitative monetary easing policy that CPI dropped from the previous year, revealing the clear delay in overcoming delation. Corporate Goods Price Index (CGPI) saw the biggest fall since the 2009 global inancial crisis of 3.5% year on year in response to the stronger yen on top of declining oil prices.

The unemployment rate hovered around 3.1%, improving from the previous year on an annual basis. The job-ofers to seekers ratio reached 1.36 times, a record high in 25 years since the 1.40 times back in 1991.

2 Stock Market

In 2016, the Nikkei 225 Stock Average started at ￥18,818 but dropped to less than ￥15,000 levels due to the strengthening yen coming from risk averse moves and further stock price decline with BOJ’s January end decision on deploying a negative interest rate policy. However, though in a limited manner, it soon returned to a rising trend coming into March since economic uncertainties of Emerging markets and resource countries moderated and after reaching ￥17,000 levels, the market repeatedly went up and down. Yet it once again plunged to below ￥15,000 when Brexit was decided as a result of the UK referendum in June. Corporate earnings worsened after the summer against a backdrop of stronger yen sentiment but the market remained steady with strong overseas stock exchange

recoveries, postponement of additional consumption tax hike, BOJ’s decision to double ETF purchases and others. After the US presidential election in November, drastic weakening of the yen coming from rising US interest rates heightened expectations for improved corporate earnings leading to a recovery reaching ￥19,000 levels in December with the year’s trade closing at ￥19,114. Stock prices remained strong into 2017 but plummeted to ￥18,300 levels in April due to geopolitical risk emerging from North Korea. However, stock prices turned to a rising trend with receding risk averse attitudes after the French presidential election, recovering to ￥20,000 levels at the end of June in light of globally rising stock prices and good corporate earnings.

Equity financing (paid-in capital increase) by publicly listed companies totaled ￥1,029.4 billion, a ￥84.9 billion decrease year on year. The number of initial public offerings (IPOs) decreased to 93 companies, less 11 companies from the previous year yet the IPOs totaled ￥190.6 billion, up by ￥99.3 billion compared to the previous year.

3 Bond Market

In 2016, the long-term interest rate (simple interest yield on newly issued 10-year JGBs) started at 0.262% and remained in the lower half of 0.2 % levels but when BOJ decided at the end of January to introduce a “quantitative/qualitative monetary easing with negative interest rate”, it dropped steeply to 0.1%, － 0.129 points from the previous day and by February 9th_{, it}

dropped to －0.035%, the irst ever negative igure. The negative range widened slightly since then and dropped to －0.3% at a point in time due to risk averse behavior observed when Brexit was decided in June. However, the long term interest rate rose slightly when BOJ did not further the negative interest rate levels but increased their ETF purchases in July. Further, when BOJ’s lexibility in their JGB purchasing methods through Yield Curve Control was decided in September, JGBs were sold and long-term interest rates momentarily recovered to positive levels for the irst time in 6 months. It continued hovering around in negative range after that but US Treasury yields rose post US presidential elections in November from strong expectations towards Mr. Trump’s to be announced policies which heightened upwards pressure on yen interest rates and long-term interest rates went into positive range. After that, though the level of rise was limited, rates remained in positive range and long-term interest rates stayed around 0.05% levels towards the end of the year with 2016 trade closing at 0.040%. Coming into 2017, long-term interest rates remain low and steady in the 0% to 0.1% range due to BOJ’s continuing Yield Curve Control and others.

The total OTC bond trading volume dropped by 11% year on

Overview

(4)

Ⅱ

Securities Industry Overview

year to ￥9,373 trillion (of which ￥9,291 trillion accounts for JGBs). Public and corporate bond issuance was ￥197 trillion.

4 Investment Trusts

Net assets of investment trusts reached a record high of ￥180,331.7 billion (up 7.4% year on year) at the end of 2016 due to signiicant growth in private placement investment trusts and others. Following are breakdowns.

Publicly ofered investment trusts: ￥96,641.5 billion (down 1.1%)

Private placement investment trusts: ￥74,084.2 billion (up 19.5%)

Real estate investment trusts: ￥9,605.9 billion (up 17.0%)

5 Derivative Market

The amount of market derivative trading in 2016 was 337.53 million units (down 6.6% from the previous year). Moreover, the amount of OTC securities derivative transactions in FY 2016 was ￥212,210.6 billion (down 11.4% from the previous year).

6 Investor Trends

The breakdown of stockholdings by investor type as of FY

2016 end indicates that stockholdings by individuals was at a record low of 17.1%, down 0.4 points from the previous iscal year. However, investment trust holdings increased to 6.3%, up 0.7 points from the previous year which was a record high in the past 15 years. The percentage held by foreign investors was 30.1%, up 0.3 points from the previous year.

7 Household Financial Assets

Composition of household inancial assets as of FY 2016 end was as follows.

Stocks and other equities: 10% Investment trusts: 5.4%

(Continuing to show an increasing trend) Cash and deposits: 51.5%

Bonds: 1.4%

Insurance and pension reserves: 28.8%

NISA (Nippon Individual Savings Account) that was introduced back in 2014 saw a significant growth from the previous iscal year with the number of NISA accounts opened as of FY 2016 end at 10.77 million and amount of annual purchase reaching ￥10,546.9 billion.

1 Number of Firms and Employed Persons

As of FY 2016 end, the number of regular members (securities firms that are members of the Japan Dealers Association) increased by 5 companies from the previous year totaling in 261 companies, with 11 joining during the said fiscal year and 6 leaving, etc. The number of special members (banks and other registered inancial institutions that are members of the Japan Dealers Association) was 210 with 2 inancial institutions less of the previous year.

The number of employees at FY 2016 end was 89,000, up 1,000 from the previous year, increasing for 3 consecutive years. The number of domestic oices of regular members at FY 2016 end also grew for the 3rd_{year in a row to 2,147, up by 2 from the}

previous year.

The number of registered sales representatives of member irms at FY 2016 end also increased for 3 consecutive years to 526,000, up by 2,000 from the previous year. By membership category, the number of sales representatives registered by regular members grew to 75,000 (up 1,000 from the previous year), and the number of sales representatives registered by special members grew to 353,000 (up 1,000 from the previous year), both categories showing growth. On the other hand, the

number of sales representatives registered with financial instruments intermediary service providers that are on contract with special members continue to decline.

2 Performance Summary

FY 2016 (ending March 2017) total operating revenues for the 253* securities firms in the securities industry amounted to ￥3,956 billion, a 2% year on year decline. Breakdown of operating revenues as follows.

Commissions: ￥2,136.5 billion Trading gains: ￥1,113.3 billion

On the other hand, selling, general and administrative costs increased by 1% year on year to ￥2,823.7 billion. Breakdown of SG&A as follows.

Transaction expenses: ￥729.2 billion Personnel expenses: ￥1,059 billion

　 As a result, the industry posted ordinary proits of ￥742.6 billion, a 17% decline from the previous year and a net income of ￥669.1 billion, up 8% from the previous year.

* Industry igures exclude 8 securities irms whose businesses have been discontinued or are not operating due to reasons from the total of 261 securities irms in the securities industry as of March 2017 end.

(5)

Economy and Market Trends

Ⅰ

Economy and Market Trends

1 Economic Overview

15

14 16 17

13 12 11 10 09 08 07 06

02 03 04 05

(CY, Quarterly) Notes: 1. Data is seasonally adjusted.

2. Data published on August 14, 2017. Source: Japanese Cabinet Oﬃce

(Trillion yen)

Nominal GDP Real GDP

440 460 480 500 520 540 560

14 15 16 17 13

12 11 10 09 08 07 06

02 03 04 05

（%）

(CY, Quarterly) Public demand Real GDP Net exports

Private demand

Notes: 1. Data is seasonally adjusted.

2. Real GDP points indicate quarterly comparison ﬁgures. Breakdown categories indicate contribution ratios. 3. Data published on August 14, 2017.

Source: Japanese Cabinet Oﬃce

-5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0

Nominal and Real GDP

■

Real GDP Growth Rate (quarter on quarter)

■

▶For numerical data, please see page 30.

(6)

14 15 16 17 13

12 11 10 09 08 07 06

02 03 04 05

（CY） Coincident Index Leading Index

Lagging Index

Notes: 1. 2010 average = 100

2. Data published on August 7, 2017. Source: Japanese Cabinet Oﬃce

70 80 90 100 110 120 130

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

（%）

(FY) Notes: 1. FY 2016 ordinary proﬁts and the ratio of ordinary proﬁts to sales are on a preliminary report basis.

2. FY 2016 return on equity is not yet published.

3. Ordinary proﬁts, the ratio of ordinary proﬁts to sales, and return on equity exclude performances of the banking and insurance industries. Source: Ministry of Finance

Ratio of ordinary proﬁts to sales (right scale) Return on equity (right scale)

Ordinary proﬁts (left scale)

(Trillion yen)

0 10 20 30 40 50 60 70 80

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Indexes of Business Conditions (Composite Indexes)

■

Corporate Proits (all industries and all scales of business)

■

(7)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

（%）

(CY) Note: Annual average (year on year).

Sources: Ministry of Internal Aﬀairs and Communications, Bank of Japan

Consumer Price Index (excluding fresh food) Corporate Goods Price Index

-6.0 -4.0 -2.0 0.0 2.0 4.0 6.0

14 15 16 13

12 11 10 09 08 07 06 03 04 05

（％） (Times)

(CY) Note: Annual average (seasonally adjusted).

Sources: Ministry of Internal Aﬀairs and Communications, Ministry of Health, Labour and Welfare

Job-oﬀers to seekers ratio (excluding new school graduates but including part-time workers, right scale) Unemployment rate (left scale)

02

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4

Consumer Price and Corporate Goods Price Indexes (year on year)

■

Employment Conditions

■

(8)

2 Stock Market

14 15 16 17 13

12 11 10 09 08 07 06

02 03 04 05

(Points) (Points)

(CY) Note: Base Date for JPX-Nikkei 400 calculation is August 30, 2013. (Base value: 10,000 points).

Source: Bloomberg

TOPIX (right scale) Nikkei 225 Stock Average (left scale)

JPX-Nikkei 400 (left scale)

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

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

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(End of CY) Notes: 1. Total of domestic stocks.

2. The spot market of former Osaka Securities Exchange was merged with Tokyo Stock Exchange in July 2013. Source: Japan Exchange Group

(Companies) (Trillion yen)

Market capitalization (right scale) Number of listed companies (left scale)

0 100 200 300 400 500 600 700 800

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Stock Price Indexes

■

Number of TSE Listed Companies and Market Capitalization

■

(9)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(CY) Source: Japan Exchange Group

(Billion yen) (Trillion yen)

Total TSE trading value (right scale)

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

0 100 200 300 400 500 600 700 800

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(End of CY) Note: Spaces for the end of 2002 and 2009 are left blank as the total net profit per share was negative.

Source: Japan Exchange Group (Times)

0 20 40 60 80 100

TSE Trading Value

■

Average PER (Simple Average) of TSE (1st Section)

■

(10)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(Trillion yen)

(CY) Rights oﬀerings Public oﬀerings

Third-party allotments and others

Notes: 1. Third-party allotments include private placements.

2. Initial public oﬀerings made in conjunction with the listing of shares on exchanges before 2007 are not included in the calculations. Source: Japan Exchange Group

0 1 2 3 4 5 6 7

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(CY) Notes: 1. IPOs include public offerings made when foreign companies list on a Japanese exchange.

2. The figures for the number of new listed companies are for the First and Second Sections, the Mothers and JSADAQ markets of the TSE. Figures for other domestic exchanges are not included.

Sources: Japan Exchange Group, Japan Securities Dealers Association

(Companies) (Billion yen)

IPO amounts (right scale)

Number of newly listed companies (left scale)

0 100 200 300 400 500 600

0 30 60 90 120 150 180

Equity Financing (paid-in capital increase) by Corporations

■

Number of Newly Listed Companies and IPO Amounts

■

(11)

3 Bond Market

14 15 16 17 13

12 11 10 09 08 07 06

02 03 04 05

（％）（％）

(CY) Sources: Bank of Japan, Japan Bond Trading Co., Ltd.

Uncollateralized overnight call rate (daily average, left scale) Simple yield of newly issued 10-year JGBs (daily average, right scale)

-0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

-0.3 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 2.4

14 15 16 13

12 11 10 09 08 07 06 03 04 05 02

(Hundred trillion yen)

(CY) Medium-term, long-term, super-long-term JGBs Short-term JGBs, etc.

Others

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

0 20 40 60 80 100 120 140

Long-term and Short-term Interest Rates

■

OTC Bond Trading

■

(12)

14 15 16 13

12 11 10 09 08 07 06 03 04 05 02

(Trillion yen)

(CY) Straight corporate bonds

Convertible-type bonds with subscription rights

Notes: 1. Straight corporate bonds include asset backed corporate bonds.

2. Convertible-type bonds with subscription rights were previously termed convertible bonds before being renamed in accordance with 2002 revisions in the Commercial Code.

Source: Japan Securities Dealers Association

0 2 4 6 8 10 12

13

12 14 15 16

11 10 09 08 07 06 05 04 03 02 （%）

(CY) Gov-guaranteed bonds Others

Municipal bonds Straight corporate bonds JGBs

FILP agency bonds

Notes: 1. Excluding private placement municipal bonds. In addition, for 2008 and later, excluding private placement special bonds and private placement corporate bonds.

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

0 10 20 30 40 50 60 70 80 90 100

Corporate Bond Financing

■

Composition of Bond Issuance

■

URL http://www.jsda.or.jp/shiryo/toukei/hakkou/index.html URL http://www.jsda.or.jp/shiryo/toukei/inance/index.html

(13)

4 Investment Trusts

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(End of CY) Source: The Investment Trusts Association, Japan

(Trillion yen)

Real-estate investment trusts Number of funds (right scale) Publicly offered investment trusts

Private placement investment trusts

0 20 40 60 80 100 120 140 160 180 200

0 6,000 12,000

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(Trillion yen)

Bond investment trusts Number of funds (right scale) Stock investment trusts

Money management funds

0 10 20 30 40 50 60 70 80 90 100

0 4,000 8,000

Net Assets, etc. Held in Investment Trusts

■

Net Assets, etc. Held in Publicly Ofered Contractual-type Securities Investment Trusts

■

(14)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(Trillion yen)

Open type (excluding ETFs) Number of funds (right scale) Unit type

ETFs

0 10 20 30 40 50 60 70 80 90 100

0 3,000 6,000

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(Trillion yen)

Number of funds (right scale) Bond investment trusts

Stock investment trusts

0 10 20 30 40 50 60 70 80

0 2,500 5,000

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

■

Net Assets, etc. Held in Private Placement Contractual-type Investment Trusts

■

(15)

5 Derivative Market

14 15 16

13 12

11 10

09 08

07 06

(CY) Notes: 1. The derivative market of Tokyo Stock Exchange was merged with that of Osaka Securities Exchange in March 2014.

2. Figure show the total of the derivative markets of Tokyo Stock Exchange before the merger and Osaka Securities Exchange. 3. Current outstanding open contracts are as of year-end.

Source: Japan Exchange Group (Million

contracts) (Thousandcontracts)

Current outstanding open contracts (right scale) Transaction volume (left scale)

0 50 100 150 200 250 300 350 400

0 3,000 6,000

14 15 16

13 12 11 10 09 08 07 06 05 04

(FY) Notes: 1. On a notional value basis.

2. End of term balance is as of fiscal year-end. Source: Japan Securities Dealers Association (Trillion yen)

End-of-term balance Transaction value

0 50 100 150 200 250

0 30 60

Derivative Market Transaction Volume, etc.

■

Value of Securities OTC Derivative Transactions

■

(16)

6 Investor Trends

14 15 16

13 12

11 10

09 08

07 (Trillion yen)

(FY) Stocks Foreign securities Bonds

Investment trusts

Notes: 1. Changes during the ﬁscal year. 2. Stocks include other equities. 3. Data published on June 27, 2017. Source: Bank of Japan

-5 0 5 10 15

14 15 16

13 12

11 10

09 08

07 (Trillion yen)

(FY) Stocks Foreign securities Bonds

Investment trusts

Notes: 1. Changes during the ﬁscal year. 2. Stocks include other equities. 3. Data published on June 27, 2017. Source: Bank of Japan

-10 -5 0 5 10 15

Investment by Institutional Investors (Insurance Companies and Pension Funds)

■

Investments by Individual Investors (Household)

■

(17)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

（％）

(End of FY) Individuals

Insurance companies

Governments Business corporations

Financial institutions Foreigners

Pension trusts Securities ﬁrms

Investment trusts

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

0 5 10 15 20 25 30 35

Share of Stockholdings by Type of Investors (market value basis)

■

▶For numerical data, please see page 38. 14 15 16 13

12 11 10 09 08 07 06 05 04 03 02

(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

(Trillion yen)

Financial institutions Foreigners

Pension trusts Securities ﬁrms

Investment trusts Governments

Business corporations Individuals

Insurance companies

0 100 200 300 400 500 600

Stockholdings by Type of Investors

■

(18)

7 Household Financial Assets

13

12 14 15 16

11 10

09 08

07

(End of FY) Stocks and other equities Others

Bonds

Insurance and pension reserves Cash and deposits

Investment trusts

Notes: 1. Bonds include trust beneﬁciary rights. 2. Data published on June 27, 2017. Source: Bank of Japan

(Trillion yen)

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Household Financial Assets

■

15 16

02 03 04 05 06 07 08 09 10 11 12 13 14

(Ten thousand yen)

(CY) Notes: Households with two people or more (including those without ﬁnancial assets.).

Source: Central Council for Financial Services Information

20s 50s

30s 60s

40s 70s or older

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

(19)

17.3 16.3 16.6 16.9 16.12 15.12

15.9 15.6 15.3 14.12 14.1 14.3 14.6

(Year/Month) Notes: 1. At the time of introduction for January 2014; end of month for others.

2. Figures for September 2014 have not been disclosed. Source: Financial Services Agency

Number of accounts (left scale) Purchase amount in 2015 (right scale) Purchase amount in 2016 (right scale)

Purchase amount in 2014 (right scale) Purchase amount in 2017 (right scale)

(Ten thousand

accounts) (Trillion yen)

0 2 4 6 8 10 12

0 200 400 600 800 1,000 1,200

Nippon (Japan) Individual Savings Account (NISA)

■

14 15 13

12 11 10 09 08 07 06

03 04 05

(Billion yen)

(Fiscal year end) Corporate type Individual type

Notes: 1. Numbers aggregated based on data managed by Record Keeping Institutions. (SBI Benefit Systems Co.,Ltd., Sompo Japan Nipponkoa DC Securities Inc., Japan Investor Solutions&Technologies Co.,LTD., NIPPON RECORD KEEPING NETWORK Co., Ltd.)

2. Numbers for Corporate type DCs as of FY 2002 end and FY 2003 end do not include numbers from Sompo Japan Nipponkoa DC Securities. Inc. Source: Liaison Council for Operational Management Institution

02

0 2 4 6 8 10 12

Status of DC (Deined Contribution)

■

(20)

(Thousands) Female Male

2065 (prospect)

Sources: Ministry of Internal Affairs and Communications, National Institute of Population and Social Security Research

2015

1965

6,000 4,000 2,000 0

100 or older 95∼99 90∼94 85∼89 80∼84 75∼79 70∼74 65∼69 60∼64 55∼59 50∼54 45∼49 40∼44 35∼39 30∼34 25∼29 20∼24 15∼19 10∼14 ５∼９０∼４

6,000 4,000 2,000 0

100 or older 95∼99 90∼94 85∼89 80∼84 75∼79 70∼74 65∼69 60∼64 55∼59 50∼54 45∼49 40∼44 35∼39 30∼34 25∼29 20∼24 15∼19 10∼14 ５∼９０∼４

6,000 4,000 2,000 0

100 or older 95∼99 90∼94 85∼89 80∼84 75∼79 70∼74 65∼69 60∼64 55∼59 50∼54 45∼49 40∼44 35∼39 30∼34 25∼29 20∼24 15∼19 10∼14 ５∼９０∼４

2,000 4,000 6,000

(21)

Securities Industry Overview

Ⅱ

Securities Industry Overview

1 Number of Firms, Employed Persons, etc.

13

12 14 15 16

11 10 09 08 07 06

02 03 04 05

(End of FY) No less than ¥1 billion to less than ¥3 billion Foreign securities ﬁrms

No less than ¥300 million to less than ¥1 billion No less than ¥10 billion

No less than ¥200 million to less than ¥300 million No less than ¥5 billion to less than ¥10 billion No less than ¥50 million to less than ¥200 million

No less than ¥3 billion to less than ¥5 billion

Note: The amount in the breakdown for the number of member firms shows the classification of capital for domestic securities firms. Source: Japan Securities Dealers Association

0 50 100 150 200 250 300 350

13

12 14 15 16

11 10 09 08 07 06

02 03 04 05

(End of FY) Regional banks

Other banks Money market brokers Shinkin banks

Foreign banks

City banks Government-aﬃliated ﬁnancial institutions Non-life insurance companies Credit cooperatives

Second-tier regional banks

Securities ﬁnance companies Trust banks

Life insurance companies

0 50 100 150 200 250

Regular Members (Securities Firms)

■

Special Members (Registered Financial Institutions)

■

URL http://www.jsda.or.jp/shiryo/toukei/kaiinsu.html

(22)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

(End of CY) Source: Japan Securities Dealers Association

(Thousands)

75 80 85 90 95 100

Regular Members’ Employees

■

URL http://www.jsda.or.jp/shiryo/toukei/jyugyoinsu/index.html

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

Note: From the end of FY2014, the category of “Branches” is included in that of “Business offices.” Source: Japan Securities Dealers Association

Business offices Head office Branches

(End of FY)

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

Regular Members’ Domestic Oices

■

(23)

Securities Industry Overview Hokkaido 27（2） Aomori 7 Akita 6 Iwate 8 Yamagata 9（2） Fukushima 18（1） Niigata 45（3） Miyagi 10（1） Tochigi 26（1） Saitama 83（3） Gunma 29（2） Nagano 34（2） Toyama 26（5） Ishikawa 21（3） Fukui 16（2） Ibaraki 37（2） Kanagawa 139（1） Chiba 75（1） Yamanashi 9 Tokyo 553（174） Aichi 150（11） Mie 38（2） Shizuoka 60（2） Gifu 27（1） Shiga 14 Nara 26（1） Osaka 180（12） Wakayama 19 Hyogo 88（4） Kyoto 33（4） Okayama 25（1） Tottori 10（1） Shimane 12（1） Hiroshima 49（2） Yamaguchi 35（1） Fukuoka 72（3） Oita 8 Miyazaki 6 Kagoshima 6 Kumamoto 14（1） Saga 5 Nagasaki 10 Okinawa 13（2） Kagawa 19（2） Tokushima 16（2） Kochi 7 Ehime 27（3）

Note: The number of head oﬃces are in parentheses. Source: Japan Securities Dealers Association

（As of end March 2017）

Regular Members’ Domestic Oices by Prefecture

■

(24)

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

Notes: 1. The JSDA began recording the number of securities sales representatives of financial instruments intermediary service providers in 2005. 2. Excluding representatives of financial instruments intermediary service providers that are individuals rather than companies.

Source: Japan Securities Dealers Association (Thousands)

Financial instruments intermediary service providers belonging to Regular Members Financial instruments intermediary service providers belonging to Special Members Regular Members

Special Members

(End of CY)

0 100 200 300 400 500 600

14 15 16

13 12

11 10

09 08

07

（％）

Notes: As of January 2012, JSDA lifted its restrictions (must be an officer or employee of an association member firm, must have qualified as Class-2 Sales Representative) on eligibility for taking the Class-1 Sales Representative examination.

Source: Japan Securities Dealers Association (Thousands)

Special Members’ Class-2 (No. of Examinees)（left scale） Special Members’ Class-2 (Pass rate)（right scale） Special Members’ Class-1 (No. of Examinees)

Special Members’ Class-1 (Pass rate) Class-1 (No. of Examinees)

Class-1 (Pass rate) Class-2 (Pass rate) Class-2 (No. of Examinees)

0 20 40 60 80 100 120 140

0 10 20 30 40 50 60 70

Securities Sales Representatives

■

Securities Sales Representative Exam Candidates

■

URL http://www.jsda.or.jp/shiryo/toukei/jyugyoinsu/index.html

(25)

2 Performance Summary

15.3 16.3 17.3 14.3

13.3 12.3 11.3 10.3 09.3 08.3 07.3 03.3 04.3 05.3 06.3

Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. Figures for fiscal year ended March 2017 are on a preliminary report basis.

Source: Japan Securities Dealers Association (Trillion yen)

Trading gain Others Commission

Financial revenue

(FY ended)

0 1 2 3 4 5 6

15.3 16.3 17.3 14.3

13.3 12.3 11.3 10.3 09.3 08.3 07.3 03.3 04.3 05.3 06.3

Underwriting and offering commissions Other commissions

Brokerage commission

Subscription and distribution commissions

(FY ended) (Billion yen)

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Operating Revenues of Regular Members

■

Commissions Received of Regular Members

■

URL http://www.jsda.or.jp/shiryo/toukei/kessan/index.html

(26)

15.3 16.3 17.3 14.3

13.3 12.3 11.3 10.3 09.3 08.3 07.3 03.3 04.3 05.3 06.3

Others

Employment cost Real estate & equipment costs Financial expenses

Transaction expenses

Data processing & office supplies costs

(FY ended)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

15.3 16.3 17.3 14.3

13.3 12.3 11.3 10.3 09.3 08.3 07.3 03.3 04.3 05.3 06.3

Current Net Profits / Losses Ordinary Profits / Losses

(FY ended)

-0.5 0.0 0.5 1.0 1.5 2.0

Operating Expenses of Regular Members

■

Ordinary Proits/Losses and Current Net Proits/Losses of Regular Members

■

URL http://www.jsda.or.jp/shiryo/toukei/kessan/index.html

(27)

08.3 09.3 10.3 11.3 12.3 13.3 14.3 15.3 16.3 17.3 (Billion yen)

(FY ended) Foreign firms Other domestic firms Major firms

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

2. Major securities ﬁrms: SMBC Nikko Securities Inc., Daiwa Securities, Co., Ltd., Nomura Securities Co., Ltd., and other securities ﬁrms capitalized at a hundred billion yen or more.

3. Figures for ﬁscal year ended March 2017 are on a preliminary report basis. Source: Japan Securities Dealers Association

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

15.3 16.3 17.3 14.3

13.3 12.3 11.3 10.3 09.3 08.3 07.3 03.3 04.3 05.3 06.3 （％）

(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: SMBC Nikko Securities Inc., Daiwa Securities, Co., Ltd., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more.

3. Figures for fiscal year ended March 2017 are on a preliminary report basis. Source: Japan Securities Dealers Association

All member securities firms Major firms Foreign firms Other domestic firms

-20 -10 0 10 20 30 40

Current Net Proits/Losses by Type of Regular Members

■

ROE by Type of Regular Members

■

(28)

International Comparison

Ⅲ

14 15 16 13

12 11 10 09 08 07 06

02 03 04 05

（％）

（CY） Source: International Monetary Fund

Euro area United States

Japan

-6 -4 -2 0 2 4 6

Real GDP Growth Rate (year on year)

■

14 15 13

12 11 10 09 08 07

06 16

02 03 04 05

（CY） Note: The initial stock price index in 2002 was 100.

Source: Bloomberg

Nikkei 225 Stock Average ST Index, Singapore Dow Jones Industrial Average, USA

Hang Seng Index, Hong Kong

FTSE 100, UK

CSI 300 Index, Shanghai/ Shenzhen

0 50 100 150 200 250 300 350 400 450 500

Stock Price

■

(29)

Japan 4,955

United States

27,352

UK

3,463

France 3,459 Germany 1,716

Singapore

640

Hong Kong 3,193 China 7,311

Brazil 758

Australia 1,268

Market Capitalization

■

Note:Unit:billionUSD

(30)

14 15 16 13

12 11 10 09 08 07

06 17

02 03 04 05

（％）

（CY） Source: Bloomberg

Germany United States

Japan France UK

China

-1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0

2016 2015

Australia Japan United States UK France Germany Singapore Hong Kong China Brazil

Source: World Federation of Exchanges (Billion USD)

0 10 20 30 40 50

Long-term Interest Rate (10 yr. Government Bond Yield)

■

Value of Share Trading

■

(31)

（％） Stocks and other equities Others

Cash and deposits Investment trusts

Bonds

Insurance and pension reserves

Note: As of December 31, 2016

Sources: Bank of Japan, Federal Reserve Board, European Central Bank Japan

United States

Euro Area

0 20 40 60 80 100

Composition of Household Financial Assets

■

（％）

China Singapore

Germany France

UK Japan United States

Note: As of July 1, 2015 Source: United Nations

15 to 64 yrs. old

0 to 14 yrs. old 65 yrs. & older

0 20 40 60 80 100

Population Composition

■

(32)

Statistical Data

　

（Billionyen,％）

CY, Quarterly Nominal GDP Real GDP _{Growth Rate Private demand Public demand}Real GDP _{Net exports}

2002

１Q 516,631 460,195 0.1 －0.4 0.1 0.4

２Q 515,542 463,796 0.8 0.4 －0.1 0.5

３Q 515,789 465,743 0.4 0.5 0.1 －0.2

４Q 516,432 467,423 0.4 0.3 －0.2 0.2

2003

１Q 511,388 466,042 －0.3 －0.2 －0.1 0.1

２Q 516,168 470,421 0.9 0.4 0.2 0.4

３Q 516,560 472,404 0.4 0.4 －0.1 0.2

４Q 518,398 477,454 1.1 0.8 －0.1 0.4

2004

１Q 521,847 481,551 0.9 0.8 －0.2 0.3

２Q 520,000 481,211 －0.1 －0.3 0.0 0.2

３Q 521,912 483,433 0.5 0.6 0.0 －0.1

４Q 520,540 481,525 －0.4 －0.2 －0.1 －0.1

2005

１Q 520,908 484,115 0.5 0.6 0.1 －0.1

２Q 523,396 488,463 0.9 1.0 －0.4 0.4

３Q 526,422 493,156 1.0 0.8 0.1 0.1

４Q 526,471 493,979 0.2 －0.3 0.0 0.5

2006

１Q 525,533 494,245 0.1 －0.1 0.1 0.1

２Q 526,541 496,364 0.4 0.5 －0.2 0.1

３Q 524,650 495,437 －0.2 －0.2 －0.3 0.3

４Q 530,799 500,839 1.1 0.9 0.0 0.2

2007

１Q 533,923 505,388 0.9 0.6 0.0 0.3

２Q 533,681 505,008 －0.1 －0.3 0.1 0.2

３Q 529,492 503,386 －0.3 －0.8 －0.1 0.5

４Q 529,612 505,677 0.5 －0.1 0.2 0.3

2008

１Q 530,470 507,792 0.4 0.3 －0.1 0.2

２Q 526,021 504,211 －0.7 －0.4 －0.4 0.1

３Q 515,689 497,957 －1.2 －1.2 0.0 0.0

４Q 510,843 487,243 －2.2 0.4 0.1 －2.6

2009

１Q 486,508 463,801 －4.8 －3.7 0.2 －1.3

２Q 492,091 472,935 2.0 －0.6 0.7 1.8

３Q 487,852 472,570 －0.1 －0.8 0.2 0.5

４Q 491,615 479,592 1.5 0.6 0.2 0.7

2010

１Q 496,766 484,891 1.1 0.9 －0.2 0.5

２Q 499,565 489,556 1.0 0.9 0.0 0.1

３Q 505,420 498,686 1.9 1.7 0.1 0.2

４Q 500,262 495,381 －0.7 －0.6 0.0 0.0

2011

１Q 491,945 488,315 －1.4 －1.0 0.0 －0.3

２Q 485,346 485,484 －0.6 0.2 0.2 －1.1

３Q 494,937 496,705 2.3 1.5 0.0 0.9

４Q 494,365 496,183 －0.1 0.8 －0.2 －0.7

2012

１Q 500,374 501,760 1.1 0.3 0.6 0.2

２Q 495,155 499,271 －0.5 0.1 －0.1 －0.5

３Q 492,394 497,265 －0.4 0.2 －0.1 －0.5

４Q 492,827 497,913 0.1 0.1 0.1 －0.1

2013

１Q 498,315 504,108 1.2 0.7 0.2 0.3

２Q 502,539 508,731 0.9 0.6 0.3 0.0

３Q 506,740 512,127 0.7 0.8 0.2 －0.3

４Q 506,181 511,651 －0.1 0.3 0.1 －0.5

2014

１Q 512,661 517,349 1.1 1.3 0.0 －0.2

２Q 512,464 507,181 －2.0 －2.6 －0.4 1.0

３Q 512,000 506,631 －0.1 －0.3 0.2 0.0

４Q 517,190 510,445 0.8 0.3 0.1 0.4

2015

１Q 528,568 516,447 1.2 1.1 0.1 0.0

２Q 529,431 515,759 －0.1 0.0 0.0 －0.1

３Q 531,804 516,942 0.2 0.3 0.0 －0.1

４Q 530,870 515,873 －0.2 －0.3 0.1 0.0

2016

１Q 536,030 518,875 0.6 －0.1 0.3 0.4

２Q 536,161 520,618 0.3 0.6 －0.3 0.1

３Q 536,660 522,248 0.3 －0.1 0.0 0.4

４Q 539,413 524,483 0.4 0.2 －0.1 0.3

2017 １Q_２Q 539,199_545,352 526,392_531,530 0.4_1.0 0.2_1.0 0.0_0.3 _－0.30.1

Notes:1.Dataisseasonallyadjusted.

2.Breakdowncategoriesindicatecontributionratios. 3.DatapublishedonAugust14,2017.

Source:JapaneseCabinetOffice

The following statistics update the data on the Association’s website. URL http://www.jsda.or.jp/shiryo/toukei/factbook/index.html

Economy and Market Trends

1 Economic Overview

(33)

Statistical Data

_{Indexes of Business Conditions (Composite Indexes)}

Corporate Proits (all industries and all scales of business)

年度 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Ordinaryproits

(Trillionyen) 31.0 36.1 44.7 51.6 54.3 53.4 35.4 32.1 43.7 45.2 48.4 59.6 64.5 68.2 76.1

Ratioofordinary

proitstosales(%) 2.3 2.7 3.1 3.4 3.5 3.4 2.4 2.3 3.2 3.3 3.5 4.2 4.5 4.8 5.8

Returnonequity

(%) 1.8 3.9 4.5 5.9 6.3 5.6 1.5 1.9 3.7 3.8 4.5 6.7 6.9 6.7 －

Notes:1.FY2016ordinaryprofitsandtheratioofordinaryprofitstosalesareonapreliminaryreportbasis. 2.FY2016returnonequityisnotyetpublished.

3.Ordinaryprofits,theratioofordinaryprofitstosales,andreturnonequityexcludeperformancesofthebankingandinsuranceindustries. Source:MinistryofFinance

Consumer Price and Corporate Goods Price Indexes

（％）

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ConsumerPriceIndex

(excludingfreshfood) －0.9 －0.3 －0.1 －0.1 0.1 0.0 1.5 －1.3 －1.0 －0.3 －0.1 0.4 2.6 　0.5 －0.3

CorporateGoods

PriceIndex －2.0 －0.9 　1.3 　1.6 2.2 1.7 4.6 －5.2 －0.1 　1.4 －0.9 1.2 3.2 －2.3 －3.5

Note:Annualaverage(yearonyear).

Sources:MinistryofInternalAffairsandCommunications,BankofJapan

Employment Conditions

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

UnemploymentRate

(%) 5.36 5.24 4.73 4.43 4.12 3.83 3.98 5.08 5.06 4.58 4.33 4.01 3.58 3.38 3.12

Job-ofersto SeekersRatio

(excludingnewschool graduatesbutincluding part-timeworkers)(Times)

0.54 0.64 0.83 0.95 1.06 1.04 0.88 0.47 0.52 0.65 0.80 0.93 1.09 1.20 1.36

Note:Annualaverage(seasonallyadjusted).

Sources:MinistryofInternalAffairsandCommunications,MinistryofHealth,LabourandWelfare

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LeadingIndex 93.3 100.1 106.8 110.4 110.7 106.1 83.4 96.1 100.8 100.9 98.5 111.0 104.3 100.4 104.8

CoincidentIndex 101.0 109.2 112.6 116.7 119.2 117.6 91.9 93.5 102.9 106.7 104.0 114.0 113.7 111.5 114.6

LaggingIndex 101.8 108.7 113.7 116.6 122.6 126.1 112.5 97.5 101.5 105.0 105.2 109.1 114.8 115.3 114.9

Notes:1.2010average=100

(34)

Statistical Data

2 Stock Market

Stock Price Indexes

(Points)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nikkei225

StockAverage 8,578.95 10,676.64 11,488.76 16,111.43 17,225.83 15,307.78 8,859.56 10,546.44 10,228.92 8,455.35 10,395.18 16,291.31 17,450.77 19,033.71 19,114.37 TOPIX 843.29 1,043.69 1,149.63 1,649.76 1,681.07 1,475.68 859.24 907.59 898.80 728.61 859.80 1,302.29 1,407.51 1,547.30 1,518.61 JPX-Nikkei400 －－－－－－－－－－－ 11,767.24 12,768.42 13,951.93 13,614.80 Notes:1.Stockpriceindexesshowclosingprices.

2.BaseDateforJPX-Nikkei400calculationisAugust30,2013.(Basevalue:10,000points). Source:Bloomeberg

Number of TSE Listed Companies, Market Capitalization, Trading Volume, and Trading Value

(companies,billionyen,millionstocks)

End of CY TSE Listed Number of Companies

Market Capitalization

Trading volume Trading value

Total Dailyaverage Total Dailyaverage

2002 2,119 247,860 213,173 867 193,354 786

2003 2,174 316,483 316,124 1,290 242,371 989

2004 2,276 364,554 378,755 1,539 343,121 1,394

2005 2,323 539,739 558,901 2,281 491,772 2,007

2006 2,391 549,789 502,463 2,026 673,762 2,716

2007 2,389 483,828 562,118 2,294 752,227 3,070

2008 2,373 283,460 555,106 2,265 576,319 2,352

2009 2,319 307,779 563,576 2,319 373,766 1,538

2010 2,280 310,451 520,052 2,122 359,170 1,466

2011 2,279 255,855 536,774 2,190 347,112 1,416

2012 2,293 300,797 529,928 2,136 310,886 1,253

2013 3,406 477,509 887,952 3,624 682,702 2,786

2014 3,456 524,899 709,104 2,906 643,105 2,635

2015 3,502 589,788 709,718 2,908 745,955 3,057

2016 3,533 579,596 665,769 2,717 691,102 2,820

Notes:1.Totalofdomesticstocks.

2.Numberoflistedcompaniesandmarketcapitalizationwerethoseattheendoftheyear.

3.ThespotmarketofformerOsakaSecuritiesExchangewasmergedwithTokyoStockExchangeinJuly2013. Source:JapanExchangeGroup

Average PER (Simple Average) of TSE (1st Section)

(Times)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PER － 96.7 28.1 32.3 25.9 19.5 14.1 － 32.9 15.0 18.4 23.5 18.5 18.5 19.6

(35)

Statistical Data

Number of Newly Listed Companies and IPO Amounts

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Numberofnewly

listedcompanies 94 120 152 98 113 65 54 23 26 50 69 79 92 110 96 IPOamounts

(Billionyen) 147 347 421 402 594 176 43 33 206 128 39 377 346 91 190

Notes:1.IPOsincludepublicofferingsmadewhenforeigncompanieslistonaJapaneseexchange.

2.ThefiguresforthenumberofnewlistedcompaniesarefortheFirstandSecondSections,theMothersandJSADAQmarketsoftheTSE.Figuresfor otherdomesticexchangesarenotincluded.

Sources:JapanExchangeGroup,JapanSecuritiesDealersAssociation

Equity Financing (paid-in capital increase) by Corporations

（Billionyen）

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Publicoferings 223 653 994 884 1,659 511 362 4,968 3,320 1,014 473 1,134 1,384 963 258

Rightsoferings － 2 11 4 3 9 0 0 1 － 0 1 － 0 0

Third-partyallotments

andothers 1,566 2,808 2,150 2,509 1,220 1,626 1,116 1,366 655 510 1,444 519 617 915 771 Total 1,789 3,464 3,156 3,397 2,883 2,147 1,479 6,334 3,977 1,524 1,918 1,655 2,002 1,879 1,029

Notes:1.Third-partyallotmentsincludeprivateplacements.

2.Initialpublicofferingsmadeinconjunctionwiththelistingofsharesonexchangesbefore2007arenotincludedinthecalculations. 3.“—”indicatesnil.“0”indicatesanamountlessthan1unitamount.

Source:JapanExchangeGroup

(%)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Simpleyieldofnewly

issued10-yearJGBs 0.900 1.360 1.435 1.470 1.675 1.500 1.165 1.285 1.110 0.980 0.795 0.735 0.330 0.265 0.046 Uncollateralized

overnightcallrate 0.002 0.001 0.002 0.004 0.275 0.459 0.103 0.094 0.079 0.075 0.076 0.068 0.066 0.038 -0.058 Sources:BankofJapan,JapanBondTradingCo.,Ltd.

3 Bond Market

Long-term and Short-term Interest Rates

OTC Bond Trading

(Trillionyen)

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

JGBs 3,429.8 4,836.1 6,178.6 6,428.0 8,881.6 11,890.1 11,118.4 8,458.1 7,452.4 7,860.2 8,738.9 8,968.6 10,075.4 10,393.4 9,291.1

Short-termJGBs,etc. 1,490.0 1,933.7 2,179.3 1,817.5 1,872.1 2,554.8 2,680.6 3,083.9 2,646.5 2,497.8 2,475.5 2,693.7 2,449.3 2,499.7 1,409.8 Medium-term,long-term,

Super-long-term,JGBs 1,939.8 2,902.4 3,999.2 4,610.5 7,009.5 9,335.2 8,437.8 5,374.1 4,805.9 5,362.4 6,263.3 6,274.9 7,626.0 7,893.7 7,881.2 Others 236.1 274.0 302.8 330.1 271.3 206.5 169.7 105.1 100.7 104.1 105.3 89.3 106.9 142.8 82.0

Total 3,665.9 5,110.2 6,481.4 6,758.2 9,152.9 12,096.6 11,288.1 8,563.3 7,553.1 7,964.4 8,844.3 9,058.0 10,182.3 10,536.3 9,373.2

(36)

Statistical Data

Corporate Bond Financing

(Billionyen)

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Straightcorporatebonds 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493 9,678 8,483 8,409 8,708 8,456 6,898 10,715 Convertible-typebonds

withsubscriptionrights 427 72 561 889 1,423 127 653 287 171 39 36 97 104 237 87 Total 8,163 7,800 6,440 7,977 8,281 9,385 9,778 11,780 9,849 8,522 8,445 8,805 8,560 7,135 10,802

Notes:1.Straightcorporatebondsincludeassetbackedbonds. 2.Financingbycorporatebondswithshareoptionswaszero.

3.Convertible-typebondswithsubscriptionrightswerepreviouslytermedconvertiblebondsbeforebeingrenamedinaccordancewith2002revisionsin theCommercialCode.

Source:JapanSecuritiesDealersAssociation

Bond Issuance

(Billionyen)

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

JGBs 147,831 154,686 175,268 186,155 175,683 140,455 125,751 145,660 165,823 164,064 172,248 181,032 175,848 174,508 168,854

Municipalbonds 2,582 4,264 5,251 6,152 6,031 5,703 5,873 7,439 7,608 6,654 6,771 7,079 6,880 6,849 6,346

Gov-guaranteedbonds 4,216 6,476 8,243 7,821 4,434 4,461 4,494 4,925 4,540 3,153 4,699 4,873 4,600 3,134 3,335

FILPagencybonds 2,408 2,457 3,188 4,187 4,493 4,556 4,472 4,599 4,998 5,647 5,439 4,811 4,134 4,298 4,860

Straight

corporatebonds 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493 9,678 8,483 8,409 8,708 8,456 6,898 10,715

Others 17,159 15,757 15,812 16,684 13,561 12,150 8,822 5,995 5,838 5,395 4,944 4,368 5,097 4,607 3,120

Total 181,934 191,371 213,642 228,090 211,062 176,585 158,540 180,113 198,488 193,398 202,513 210,873 205,019 200,297 197,232

Notes:1.Excludingprivateplacementmunicipalbonds.Inaddition,for2008andlater,excludingprivateplacementspecialbondsandprivateplacement corporatebonds.

2.Straightcorporatebondsincludeassetbackedcorporatebonds. Source:JapanSecuritiesDealersAssociation

Composition of Bond Issuance

(%)

CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

JGBs 81.3 80.8 82.0 81.6 83.2 79.5 79.3 80.9 83.5 84.8 85.1 85.8 85.8 87.1 85.6

Municipalbonds 1.4 2.2 2.5 2.7 2.9 3.2 3.7 4.1 3.8 3.4 3.3 3.4 3.4 3.4 3.2

Gov-guaranteedbonds 2.3 3.4 3.9 3.4 2.1 2.5 2.8 2.7 2.3 1.6 2.3 2.3 2.2 1.6 1.7

FILPagencybonds 1.3 1.3 1.5 1.8 2.1 2.6 2.8 2.6 2.5 2.9 2.7 2.3 2.0 2.1 2.5

Straight

corporatebonds 4.3 4.0 2.8 3.1 3.2 5.2 5.8 6.4 4.9 4.4 4.2 4.1 4.1 3.4 5.4

Others 9.4 8.2 7.4 7.3 6.4 6.9 5.6 3.3 2.9 2.8 2.4 2.1 2.5 2.3 1.6

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Notes:1.Excludingprivateplacementmunicipalbonds.Inaddition,for2008andlater,excludingprivateplacementspecialbondsandprivateplacement corporatebonds.

(37)

Statistical Data

4 Investment Trusts

Net Assets, etc. Held in Investment Trusts

(Billionyen)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Publicly ofered investment trusts

Number

offunds 2,718 2,617 2,552 2,640 2,753 2,997 3,333 3,656 3,905 4,196 4,384 4,922 5,404 5,843 6,060 Net

assets 36,016 37,435 40,996 55,347 68,927 79,760 52,146 61,455 63,720 57,327 64,063 81,523 93,504 97,756 96,641

Real-estate investment trusts

Number

offunds 6 10 15 28 40 42 42 42 35 34 37 52 62 68 83 Net

assets 441 766 1,246 2,050 3,153 3,687 3,968 4,020 3,908 4,109 4,578 6,078 7,137 8,224 9,605 Private

placement investment trusts

Number

offunds 1,085 1,306 1,588 1,881 2,192 2,477 2,603 2,639 2,689 2,698 2,753 2,883 3,351 3,961 4,829 Net

assets 7,381 10,384 15,596 25,643 32,987 36,030 25,555 29,667 30,626 28,542 31,818 40,413 46,870 61,973 74,084

Total

Number

offunds 3,809 3,933 4,155 4,549 4,985 5,516 5,978 6,337 6,629 6,928 7,174 7,857 8,817 9,872 10,972 Net

assets 43,839 48,586 57,839 83,041 105,068 119,478 81,670 95,143 98,255 89,979 100,461 128,014 147,512 167,954 180,331 Changesin

netassets －7,548 4,746 9,253 25,201 22,027 14,410 －37,808 13,472 3,112 －8,275 10,481 27,553 19,498 20,442 12,377 Source:TheInvestmentTrustsAssociation,Japan

(Billionyen)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number

offunds 2,351 2,339 2,308 2,408 2,533 2,789 3,135 3,468 3,724 4,017 4,209 4,756 5,242 5,684 5,939 Net

assets 16,372 21,339 27,435 40,828 55,657 66,784 40,842 50,243 52,464 46,761 52,913 65,027 77,095 81,738 83,022

Bond investment trusts

Number

offunds 346 263 230 218 206 194 184 174 167 165 161 152 148 146 120 Net

assets 14,121 11,746 9,955 11,498 10,576 10,059 8,691 8,755 9,026 8,536 9,302 14,569 14,433 14,375 13,553

Money management funds

Number

offunds 21 15 14 14 14 14 14 14 14 14 14 14 14 13 1 Net

assets 5,521 4,350 3,606 3,020 2,693 2,917 2,612 2,456 2,229 2,028 1,847 1,925 1,975 1,642 65

Total

Number

offunds 2,718 2,617 2,552 2,640 2,753 2,997 3,333 3,656 3,905 4,196 4,384 4,922 5,404 5,843 6,060 Net

netassets －9,264 1,419 3,561 14,350 13,579 10,832 －27,614 9,308 2,264 －6,392 6,736 17,459 11,981 4,251 －1,114

Source:TheInvestmentTrustsAssociation,Japan

(38)

Statistical Data

(Billionyen)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Unit type

Number

offunds 200 221 255 289 249 246 365 393 350 293 239 206 295 359 384 Net

assets 697 1,161 1,799 1,945 1,875 1,876 1,287 1,522 1,266 881 1,275 1,479 1,791 1,734 1,383

Opentype (excluding ETFs)

Number

offunds 2,133 2,100 2,038 2,106 2,271 2,527 2,706 3,003 3,289 3,629 3,866 4,440 4,824 5,180 5,400 Net

assets 13,165 17,216 22,522 35,180 49,665 61,029 37,029 46,430 48,588 43,152 47,423 55,456 64,688 63,838 61,292

ETFs

Number

offunds 18 18 15 13 13 16 64 72 85 95 104 110 123 145 155 Net

assets 2,509 2,962 3,113 3,703 4,116 3,878 2,524 2,290 2,610 2,728 4,214 8,090 10,616 16,165 20,347

Total

Number

offunds 2,351 2,339 2,308 2,408 2,533 2,789 3,135 3,468 3,724 4,017 4,209 4,756 5,242 5,684 5,939 Net

netassets 1,467 4,966 6,095 13,393 14,828 11,126 －25,942 9,401 2,220 －5,702 6,152 12,113 12,067 4,642 1,284

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

(Billionyen)

End of CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number

offunds 926 1,124 1,410 1,718 2,060 2,363 2,475 2,512 2,568 2,597 2,667 2,789 3,135 3,580 4,150 Net

assets 6,469 9,388 14,646 24,723 32,186 35,406 24,967 28,976 29,912 27,938 31,297 39,618 45,155 59,370 69,951

Bond investment trusts

Number

offunds 159 182 178 163 132 114 128 127 121 101 86 94 216 381 679 Net

assets 911 995 949 919 800 623 587 691 714 604 520 794 1,715 2,603 4,132

Total

Number

offunds 1,085 1,306 1,588 1,881 2,192 2,477 2,603 2,639 2,689 2,698 2,753 2,883 3,351 3,961 4,829 Net

netassets 1,274 3,003 5,211 10,046 7,344 3,043 －10,474 4,111 958 －2,083 3,275 8,594 6,457 15,103 12,110

(39)

Statistical Data

5 Derivative Market

Derivative Market Transaction Volume, etc.

(Unit:Inthousands)

CY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Transaction

volume 89,873 142,010 196,191 191,703 218,655 208,424 228,058 360,575 308,009 361,459 337,537 Currentoutstanding

opencontracts 1,666 1,700 1,888 2,805 3,462 3,361 5,012 5,346 4,773 3,787 3,928 Notes:1.ThederivativemarketofTokyoStockExchangewasmergedwiththatofOsakaSecuritiesExchangeinMarch2014.

2.FiguresshowthetotalofthederivativemarketsofOsakaSecuritiesExchangeandTokyoStockExchangebeforethemerger. 3.Currentoutstandingopencontractsareasofyear-end.

Source:JapanExchangeGroup

6 Investor Trends

Investment by Institutional Investors (Insurance Companies and Pension Funds)

(Billionyen)

FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bonds 2,281 －1,896 8,651 4,114 10,890 10,742 6,070 －3,149 －2,772 －2,536

Stocks 1,312 504 302 －509 －1,819 －2,186 －2,113 －1,726 －607 －134

Investmenttrusts 173 267 2,467 －286 －818 1,654 76 381 －155 2,238

Foreignsecurities －1,287 1,237 －926 4,989 －2,210 －360 －1,924 3,016 9,280 8,197

Notes:1.Changesduringthefiscalyear. 2.Stocksincludeotherequities. 3．DatapublishedonJune27,2017. Source:BankofJapan

Investments by Individual Investors (Household)

(Billionyen)

FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bonds 516 －1,353 －1,215 －3,625 －3,525 －3,285 －2,420 －2,250 －801 －764

Stocks －232 1,957 －1,865 1,395 －258 －1,808 －6,595 －6,570 －1,699 －3,694

Investmenttrusts 9,790 －813 1,206 3,237 －1,762 1,739 5,516 6,219 6,037 3,495

Foreignsecurities 2,073 －538 137 472 1,218 629 －171 687 －1,637 －451

Notes:1.Changesduringthefiscalyear. 2.Stocksincludeotherequities. 3．DatapublishedonJune27,2017. Source:BankofJapan

(Billionyen)

FY 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Transaction

value 65,062 88,456 97,214 147,591 88,021 98,697 79,420 69,467 44,041 136,503 122,946 239,526 212,210

End-of-term

balance 15,830 19,862 21,726 44,211 20,277 15,676 17,580 17,657 12,645 13,567 38,698 45,066 52,523

Notes:1.Onanotionalvaluebasis.

2.Endoftermbalanceisasoffiscalyear-end. Source:JapanSecuritiesDealersAssociation

(40)

Statistical Data

(Billionyen)

End of FY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Individuals 48,679 75,599 84,740 117,977 108,419 76,653 54,345 68,469 63,040 62,838 76,447 83,429 99,790 90,770 99,466

Governments 538 789 722 977 1,866 1,567 1,137 1,152 940 793 791 845 974 765 841 Financial

institutions 47,553 67,554 67,402 94,097 87,678 59,843 42,541 52,628 48,575 49,007 57,843 65,309 90,484 83,587 94,060 Pension

trusts 13,630 16,581 15,430 20,927 20,185 14,149 9,364 11,697 9,963 9,169 9,580 9,236 10,635 7,693 7,461 Investment

trusts 9,384 13,602 15,219 25,537 26,865 19,739 13,378 15,956 13,606 13,881 17,034 21,292 27,530 28,882 36,631 Insurance

companies 21,988 29,566 29,441 42,688 43,452 30,875 19,652 23,728 20,017 18,707 21,468 23,042 29,010 24,345 26,654 Business

corporations 50,789 80,489 88,077 126,167 121,043 87,649 60,030 72,542 66,031 66,641 81,938 94,752 122,598 117,394 128,638 Foreigners 41,824 80,604 92,765 155,978 161,400 112,222 62,373 88,295 83,037 81,030 105,849 137,377 182,337 154,457 174,730 Securities

irms 2,088 4,494 4,596 8,198 10,385 6,293 2,711 5,341 5,569 6,240 7,463 10,149 12,707 10,703 12,717 Total 236,476 369,281 398,396 592,550 581,297 408,992 265,535 339,812 310,783 308,310 378,415 445,434 576,067 518,598 581,204

Notes:1.Governmentsincludecentralandregionalgovernments.

2.FinancialInstitutionsdonotincludepensiontrusts,investmenttrustsandinsurancecompanies. 3.Figurescoverallexchange-listedstocksexcludingforeignstocks.

4.Pensiontrustsincludeinvestmentassetsofpensionrelatedfundsofwelfarepensionfunds,etc.forwhichbanksoperatingtrustbusinessare appointedastrustee,butdonotincludethoseofpublicpensionfunds.

5.Treasurysharesownedbyeachlistedcompanyareincludedundertheinvestortypeinwhichthecompaniesarecategorized. Source:TokyoStockExchange

Stockholdings by Type of Investors

(%)

End of FY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Individuals 20.6 20.5 21.3 19.9 18.7 18.7 20.5 20.1 20.3 20.4 20.2 18.7 17.3 17.5 17.1

Governments 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 Financial

institutions 20.1 18.3 16.9 15.9 15.1 14.6 16.0 15.5 15.6 15.9 15.3 14.7 15.7 16.1 16.2 Pension

trusts 5.8 4.5 3.9 3.5 3.5 3.5 3.5 3.4 3.2 3.0 2.5 2.1 1.8 1.5 1.3 Investment

trusts 4.0 3.7 3.8 4.3 4.6 4.8 5.0 4.7 4.4 4.5 4.5 4.8 4.8 5.6 6.3 Insurance

companies 9.3 8.0 7.4 7.2 7.5 7.5 7.4 7.0 6.4 6.1 5.7 5.2 5.0 4.7 4.6 Business

corporations 21.5 21.8 22.1 21.3 20.8 21.4 22.6 21.3 21.2 21.6 21.7 21.3 21.3 22.6 22.1 Foreigners 17.7 21.8 23.3 26.3 27.8 27.4 23.5 26.0 26.7 26.3 28.0 30.8 31.7 29.8 30.1 Securities

irms 0.9 1.2 1.2 1.4 1.8 1.5 1.0 1.6 1.8 2.0 2.0 2.3 2.2 2.1 2.2 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Notes:1.Governmentsincludecentralandregionalgovernments.

2.FinancialInstitutionsdonotincludepensiontrusts,investmenttrustsandinsurancecompanies. 3.Figurescoverallexchange-listedstocksexcludingforeignstocks.

4.Pensiontrustsincludeinvestmentassetsofpensionrelatedfundsofwelfarepensionfunds,etc.forwhichbanksoperatingtrustbusinessare appointedastrustee,butdonotincludethoseofpublicpensionfunds.

5.Treasurysharesownedbyeachlistedcompanyareincludedundertheinvestortypeinwhichthecompaniesarecategorized. Source:TokyoStockExchange

(41)

Statistical Data

7 Household Financial Assets

Household Financial Assets

(Billionyen)

End of FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cashand

deposits 793,989 806,003 819,011 829,283 847,876 862,494 880,234 898,748 911,060 932,082 Bonds 43,658 42,268 41,079 37,386 33,931 30,785 28,285 26,156 25,531 24,613 Stocksand

otherequities 114,713 84,380 101,262 105,382 108,470 132,622 147,793 170,299 167,631 180,825 Investmenttrusts 66,505 48,417 59,891 62,366 59,309 71,229 78,466 95,404 91,880 98,522

Insuranceand

pensionreserves 473,919 466,004 470,011 470,694 476,317 492,470 495,108 513,806 516,251 521,654 Others 45,380 43,650 45,839 43,999 44,493 46,113 46,833 51,565 49,229 51,700 Total 1,538,165 1,490,724 1,537,096 1,549,111 1,570,398 1,635,715 1,676,722 1,755,979 1,761,585 1,809,397 Notes:1.Bondsincludetrustbeneficiaryrights.

2.DatapublishedonJune27,2017. Source:BankofJapan

Year/Month 2014.1 2014.3 2014.6 2014.12 2015.3 2015.6 2015.9 2015.12 2016.3 2016.6 2016.9 2016.12 2017.3

Numberofaccounts

(Unit:Tenthousandaccounts) 492 650 727 825 879 921 957 987 1,012 1,029 1,049 1,061 1,077

Purchaseamount

(Billionyen) － 10,034 15,631 29,769 44,109 51,884 58,597 64,444 77,513 83,761 88,591 94,095 105,469

Listedstocks － 3,645 4,949 9,705 13,983 16,282 18,867 21,654 27,464 29,921 31,698 34,018 38,854 Investmenttrusts － 6,212 10,395 19,439 29,154 34,477 38,381 41,297 48,126 51,700 54,620 57,636 63,900 ETF － 91 140 343 562 655 835 952 1,314 1,413 1,473 1,572 1,704 REIT － 86 145 281 409 468 512 540 649 726 799 867 1,010 Notes:1.AtthetimeofintroductionforJanuary2014;endofmonthforothers.

2．FiguresforSeptember2014havenotbeendisclosed.

3.Theamountofpurchaserepresentstheaccumulatedtotalsincethestartoftheprogram. Source:FinancialServicesAgency

Nippon (Japan) Individual Savings Account (NISA)

(%)

End of FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cashand

deposits 51.6 54.1 53.3 53.5 54.0 52.7 52.5 51.2 51.7 51.5

Bonds 2.8 2.8 2.7 2.4 2.2 1.9 1.7 1.5 1.4 1.4

Stocksand

otherequities 7.5 5.7 6.6 6.8 6.9 8.1 8.8 9.7 9.5 10.0 Investmenttrusts 4.3 3.2 3.9 4.0 3.8 4.4 4.7 5.4 5.2 5.4

Insuranceand

pensionreserves 30.8 31.3 30.6 30.4 30.3 30.1 29.5 29.3 29.3 28.8

Others 3.0 2.9 3.0 2.8 2.8 2.8 2.8 2.9 2.8 2.9

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Notes:1.Bondsincludetrustbeneficiaryrights.

2.DatapublishedonJune27,2017. Source:BankofJapan

(42)

Statistical Data

(Corporatetype) （％）

Fiscal year 2012 2013 2014 2015

Depositsandsavings 38.3 37.7 35.0 35.6

Insurance(life/non-life) 20.6 19.5 18.6 18.8

Domesticequityfund 12.0 12.5 13.6 12.5

Domesticixedincomefund 5.2 5.0 5.0 5.7

Globalequityfund 6.2 7.0 7.8 6.9

Globalixedincomefund 4.2 4.3 4.4 4.3

Balancedtypefund 12.0 12.5 13.6 13.8

Others 1.5 1.4 1.9 2.5

Total 100.0 100.0 100.0 100.0

Note:NumbersaggregatedbasedondatamanagedbyRecordKeepingInstitutions.(SBIBenefitSystemsCo.,Ltd.,SompoJapanNipponkoaDCSecuritiesInc., JapanInvestorSolutions&TechnologiesCo.,LTD.,NIPPONRECORDKEEPINGNETWORKCo.,Ltd.)

Source:LiaisonCouncilforOperationalManagementInstitution

Composition shift of assets managed in DC (Deined Contribution) plans

(Individualtype) （％）

Fiscal year 2014 2015

Depositsandsavings 38.8 38.9

Insurance(life/non-life) 25.9 26.8

Domesticequityfund 11.4 10.9

Domesticixedincomefund 2.7 3.1

Globalequityfund 6.5 6.0

Globalixedincomefund 3.1 3.1

Balancedtypefund 9.2 8.9

Others 2.3 2.4

Total 100.0 100.0

Note:Numbersaggregatedbasedondatamanagedbyrecordkeepingcompanies.(SBIBenefitSystemsCo.,Ltd.,SompoJapanNipponkoaDCSecuritiesInc., JapanInvestorSolutions&TechnologiesCo.,LTD.,NIPPONRECORDKEEPINGNETWORKCo.,Ltd.)

Source:LiaisonCouncilforPlanAdministrators

Status of DC (Deined Contribution)

(Billionyen)

Fiscal year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Corporatetype 142 540 1,172 2,207 2,962 3,434 3,696 4,497 5,014 6,000 6,796 7,720 9,074 9,566 Individualtype 7 23 50 116 191 261 314 431 525 609 743 910 1,102 1,215 Notes:1.Numbersaggregatedbasedondatamanagedbyrecordkeepingcompanies.(SBIBenefitSystemsCo.,Ltd.,SompoJapanNipponkoaDCSecurities

Inc.,JapanInvestorSolutions&TechnologiesCo.,LTD.,NIPPONRECORDKEEPINGNETWORKCo.,Ltd.)