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

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FACT BOOK

2011

1

2

3

4 Securities Market in 2010

1 Member Firms

11 Performance of Securities Industry

14 Statistical Data

17 Economic Overview

Stock Market

Bond Market

Investment Trusts

Investor Trends

1 Member Firms

Regular Members’

Employees

Securities Firms’

Domestic Oices

Securities Sales Representatives

Examinees of Securities Sales Representative

11

12

1

1 Operating Revenues of Member Securities Firms

Operating Expenses of Member Securities Firms

Current Proits/ Losses of Member Securities Firms

Net Income/ Loss and ROE of Member Securities Firms

Net Income/ Loss by Type of Member Securities Firms

ROE by Type of Member Securities Firms

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Securities Market in 2010

01 Securities Market in 2010

1

１ Economic Overview

In 2010, the Japanese economy made head-way against the backdrop of a recovery in the global economy, successful economic stimula-tion measures, and other initiatives.

The real gross domestic product (GDP) moved back into the plus column in the first quarter, increasing 5.6% year on year. It main-tained the trend throughout the fiscal year, growing 4.0% over all.

Looking at a breakdown, private demand and net exports were the two factors that contrib-uted substantially to growth in real GDP. Pri-vate demand, which had been strongly minus for two years since 2008, rebounded in the irst quarter year on year, while net exports ex-panded, particularly to Asia. Exports to the United States and the EU also recovered, end-ing the year up overall.

Refer to page 17▲

With the global economic slowdown triggered by the so-called Lehman Shock being staved of, iscal 2010 Corporate Proits (current prof-it) rebounded, rising ¥18,200.8 billion year on year, to ¥50,319.6 billion, supported by growth in corporate sales.

By industry category, profit increases were recorded in the manufacturing sector in such industries as the chemical, transportation equipment, and electrical machinery industries. In the non-manufacturing sector, proit growth was posted in such industries as wholesale, retail, transportation, and postal services.

The current profit to sales ratio also im-proved 1.3% from the previous iscal year, to 3.6%.

Refer to page 18▲

(C , uarterly) %

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

Public Demand Real GDP Net Exports Private Demand 10 09 08 07 06

eal DP ro t ate

6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 -9.0 -10.0 -11.0 (F ) (Trillion yen) (%)

Note: The iscal 2010 igures for current proit and current proit to sales ratio are preliminary report igures.

Source: Ministry of Finance

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

Current Proits (left scale)

Current Proit to Sales Ratio (right scale)

1.0 1.5 2.0 2.5 3.0 3.5 4.0 10 09 08 07 06

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02 Securities Market in 2010

FACT BOOK

2011

After posting negative growth for six con-secutive years from 2000 to 2005 under de-lationary conditions, the Consumer Price Index (CPI) turned slightly positive in 2006. In 2009, however, the CPI turned minus due mainly to the drop in the price of petroleum products that had soared sharply in the previous year. In 2010, while demand-supply balance being re-laxed, the CPI declined 1.0% year on year un-der the impact of a no public high school fees policy and other factors.

The Corporate Goods Price Index (CGPI) con-tinued its decline from the previous year, drop-ping by 1.1 % from a year earlier against a backdrop of an easing of the demand-supply balance.

Refer to page 18▲

In 2010, employment conditions continued to suffer from the harsh environment. After moving in the narrow range of 5.0% to 5.2%, the unemployment rate dropped below 5.0% in December, falling to 4.9%. However, on an an-nual basis, the unemployment rate was the same as in the previous year, at 5.1%.

Although only slightly, the job-ofers to seek-ers ratio moved up to 0.52 times on an annual basis.

Among reasons given by job seekers for not being employed, “I did not it into the required age bracket” increased.

Refer to page 18▲

(C ) (%)

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

Note: Data is annual average

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

10 09

08 07

06

onsumer Price and or orate oods Price Indices

-5.0 -4.0 -1.0 0.0 1.0 2.0

(C ) (%) (Ratio (Times))

Note: Data is annual average.

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

0.0 1.0 2.0 3.0 4.0 5.0 6.0

Unemployment Rate (left scale)

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

0.0 0.2 0.4 0.6 0.8 1.0 1.2

10 09

08 07

06

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03

２ Stock Market

In 2010, the Japanese stock market (Nikkei 225 Stock Average) made a firm start as it caught up with rising stock markets globally. The Nikkei 225 Stock Average reached its high for the year of ¥11,393.30 in the beginning of April.

Despite the strong start, the market re-versed direction because of credit concerns in Europe, uncertainty in the movement of the U.S. economy, and the appreciation of the yen. The market remained weak until the latter part of August, when the Nikkei 225 fell below ¥9,000.

The index then rebounded in reaction to mon-etary easing by the Bank of Japan and a sec-ond round of monetary easing in the United States. It recovered to the ¥10,000 level in November and ended the year at ¥10,228.92.

Overall, the Nikkei 225 contracted year-on-year, decreasing 4.0%.

The daily average stock trading value of the 1st Section of the Tokyo Stock Exchange has declined for three consecutive years since hit-ting a peak in 2007. In 2010, the figure dropped ¥69.8 billion, to ¥1,447.3 billion.

Among the major factors attributed to the stagnation of trade volumes are that investors have become risk adverse because of the un-certainty about the direction of the economy and because of the stalemate in implementing government measures.

Refer to page 18▲

(C ) ( en)

Source: Nihon eizai Shimbun

0 5,000 10,000 15,000 20,000

10 09 08 07 06 05 04 03 02 01

Stock Price

ikkei 22 Stock

era e

(C ) (Trillion yen)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

10 09 08 07 06 05 04 03 02 01

Daily era e Stock radin alue of S 1st Section

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04 Securities Market in 2010

FACT BOOK

2011

In 2010, equity inancing (paid-in capital in-crease) by publicly listed companies totaled ¥3,977.2 billion, contracting by ¥2,357.1 bil-lion.

Looking at issuing categories, public offer-ings fell ¥ 1,647.6 billion from last year, to ¥3,320.4 billion, while private placements (in-cluded preferred stocks, etc.) declined ¥710.3 billion year on year to ¥655.7 billion.

The backdrop to the many capital increases —although less than last year— made by com-panies in 2010 included inancial institutions being forced to strengthen their capital bases amid the global trend toward stricter inancial regulation.

Refer to page 19▲

In 2010, companies going public rose for the irst time in four years, increasing by 4 compa-nies to 21 compacompa-nies.

Total capital raised in conjunction with the listing on exchanges also expanded for the irst time in four years, growing ¥172.8 billion, to ¥206.7 billion.

Reasons behind the continued stagnation in the IPO market include, similar to last year, the continued slump in the domestic stock market, the slow pace at which business performances of companies planning to list are recovering, and the increased cost and other burdens for newly listing.

Refer to page 19▲

0 1 2 3 4 5 6 7

10 09 08 07 06 05 04 03 02 01

(Trillion yen)

(C ) Public Oferings

Private Placements and Others

Rights Oferings

uity Financin aid in ca ital increase by or orations

Note: Initial public oferings made in conjunction with the listing of shares on exchanges before April 2007 are not included in the calculations.

Sources: Tokyo Stock Exchange, Osaka Securities Exchange

(C ) (Companies) (Trillion yen)

0.0 0.2 0.4 0.6 0.8

10 09 08 07 06 05 04 03 02 01 0 50 100 150 200

IPO Amounts (right scale)

Number of Newly Listed Companies (left scale)

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

Source: Japan Securities Dealers Association

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05

３ Bond Market

In 2010, the short-term interest rate (uncol-lateralized overnight call rate) remained ex-tremely stable around the 0.1% level as a re-sult of measures taken by Monetary Policy Meeting of the Bank of Japan Policy Board.

The long-term interest rate (simple yield of newly issued 10-year JGBs) rose close to 1.3% against the backdrop of strong market sentiment created by the firming up of stock prices that was carried over from the previous iscal year. The rate retreated, however, in the face of the progressive appreciation of the yen, softening stock prices, and other factors, fall-ing below the 1.0% mark in August 2010. Af-ter rebounding in reaction to the bottoming out of interest rates in the latter part of August, the long-term interest rate again turned down-ward and luctuated strongly. The rate turned upward in mid-October on the strength of rising interest rates worldwide, climbing to 1.295% at one point in mid-December, but then shifted to negative trend down to 1.11% at the end of the year.

In 2010, the total OTC bond trading volume (including Repos) slipped 11.8% year on year, to ¥7,553.9 trillion. Within this amount, the trading volume of JGBs shed 11.9 % , to ¥ 7,453.2 trillion. Super-term and long-term JGBs with long-terms of 10 years or more de-clined 11.9% from a year earlier, to ¥3,094.3 trillion.

Refer to page 19▲

(C )

(%)

Sources: Bank of Japan, Japan Bond Trading Co., Ltd.

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

10 09

08 07

06

Call Rates (uncollateralized overnight, left scale)

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

0.6 1.0 1.4 1.8 2.2

on term and S ort term Interest ates

%

(C ) (Hundred

trillion yen)

0 20 40 60 80 100 120 140

10 09 08 07 06 05 04 03 02 01

Short-term JGBs Others

Super-long-term, Long-term, Medium-term JGBs

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

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06 Securities Market in 2010

FACT BOOK

2011

In 2010, corporate debt inancing in the Jap-anese market decreased 16.4% from last year, to ¥9.8 trillion.

While corporate straight bond issuance con-tracted 15.8%, to ¥9.6 trillion, the issuance of convertible-type bonds with subscription rights sunk 40.4%, to ¥171.0 billion.

Refer to page 20▲

In 2010, public and corporate bond issuance i n c r e a s e d 1 0 . 2 % f r o m a y e a r e a r l i e r , t o ¥198.5 trillion. The major category of JGB is-suance rose 13.8%, to ¥165.8 trillion. Among other issuance categories, municipal bonds in-creased 2.3%, to ¥7.6 trillion; Government-guaranteed bonds decreased 7.8%, to ¥4.5 trillion; Fiscal Investment and Loan Program (FILP) agency bonds expanded 8.7%, to ¥5.0 trillion; and straight corporate bonds retreated 15.7%, to ¥9.6 trillion.

Looking at the composition of bond issuance by volume, the breakdown was as follows: JG-Bs, 83.5 % ; municipal bonds, 3.8 % ; govern-ment-guaranteed bonds, 2.3 % ; FILP agency bonds, 2.5 % ; and straight corporate bonds, 4.9%.

Refer to page 20▲

(C ) (Trillion yen)

0 2 4 6 8 10 12 14

10 09 08 07 06 05 04 03 02 01

Straight Corporate Bonds

Convertible-type Bonds with Subscription Rights

or orate ond Financin

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.

om osition of ond Issuance 2010

JGBs Municipal Bonds Gov.-guaranteed Bonds

FILP Agency Bonds Straight Corporate Bonds Others

83.5

%

3.8 2.3

2.5 4.9

2.9

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07

４ Investment Trusts

At the end of 2010, the net assets of invest-ment trusts amounted to ¥98,255.7 billion, expanding ¥3,112.9 billion and continuing the growth trend from the previous year.

Looking at a breakdown of net assets, pub-licly offered investment trusts accounted for ¥ 63,720.1 billion, real-estate investment trusts contributed ¥3,909.0 billion, and private placement trusts totaled ¥30,626.6 billion.

Refer to page 21▲

Among publicly offered contractual-type se-curities investment trusts, net assets of stock investment trusts increased for the second consecutive year, expanding ¥2,220.9 billion compared with a year earlier, to ¥52,464.5 bil-lion.

Net assets of bond investment trusts also rose compared with last year, gaining ¥270.7 billion, to ¥9,026.1 billion.

Net assets of MMFs decreased ¥226.5 bil-lion year on year, to ¥2,229.5 bilbil-lion.

Refer to page 21▲

(End of C ) (Trillion yen)

Source: The Investment Trusts Association

0 20 40 60 80 100 120 140

10 09 08 07 06 05 04 03 02 01

Publicly Ofered Investment Trusts Private Placement Investment Trusts

Real-estate Investment Trusts

et ssets eld in In estment rusts

0 10 20 30 40 50 60 70 80 90

10 09 08 07 06 05 04 03 02 01

Stock Investment Trusts Money Management Funds

Bond Investment Trusts

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08 Securities Market in 2010

FACT BOOK

2011

By type of publicly offered contractual-type stock investment trusts, net assets of unit-type trusts amounted to ¥1,266.1 billion, de-clining ¥256.8 billion from the previous year.

Net assets held in open type trusts (exclud-ing ETFs) continued last year’s climb, ris(exclud-ing ¥2,158.0 billion, to ¥48,588.0 billion.

ETFs rebounded in 2010, increasing ¥319.7 billion, to ¥2,610.4 billion.

Refer to page 21▲

Among private placement contractual-type securities investment trusts, net assets of stock investment trusts continued to build on last year’s gains, increasing ¥935.8 billion, to ¥29,912.0 billion.

Net assets of bond investment trusts also achieved growth, rising ¥ 23.2 billion, to ¥714.5 billion.

Refer to page 21▲

0 5 10 15 20 25 30 35 40

10 09 08 07 06 05 04 03 02 01

Stock Investment Trusts Bond Investment Trusts

et ssets eld in Pri ate Placement ontractual ty e In estment rusts

0 10 20 30 40 50 60 70

10 09 08 07 06 05 04 03 02 01

Unit Type ETFs

Open Type (excluding ETFs)

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09

５ Investor Trends

By type of institutional investors, life and non-life insurance companies and pension funds reduced their securities portfolios in is-cal 2010. Compared with the previous fisis-cal year, they decreased securities investments to ¥7,400.4 billion, down by ¥626.8 billion from 2009.

By category, the amount put into securities oth-er than stocks fell ¥3,822.9 billion to ¥4,462.7 billion.

Investments in stocks and other equities de-clined ¥874.3 billion year on year, to ¥256.0 billion.

In contrast, investments in foreign securities reversed direction from a year earlier, rising to ¥2,681.7 billion—a net addition of ¥4,070.4 billion.

Refer to page 22▲

Looking at trends of individual investors port-folios, total investments in securities in iscal 2010 fell ¥1,933.2 billion from iscal 2009, to minus ¥2,685.5 billion.

By category, investments in securities other t h a n s t o c k s f e l l d r a m a t i c a l l y , s h e d d i n g ¥4,658.6 billion to minus ¥4,432.6 billion.

Investment in stocks and other equities and investments in foreign securities moved back into the positive column in iscal 2010. Invest-ment in stocks and other equities expanded ¥1,045.6 billion, to ¥290.5 billion, while in-vestments in foreign securities rose ¥1,679.8 billion year on year, to ¥1,456.6 billion.

Refer to page 22▲

Source: Bank of Japan (F ) (Trillion yen)

Securities Other than Stocks Foreign Securities

Stocks and Other Equities

-5 0 5 10 15

10 09

08 07

06

In estments by Institutional In estors Insurance om anies and Pension Funds

Source: Bank of Japan (F ) (Trillion yen)

Securities Other than Stocks Foreign Securities

Stocks and Other Equities

-5 0 5 10 15

10 09

08 07

06

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10 Securities Market in 2010

FACT BOOK

2011

Household financial assets at the end of March 2011 contracted approximately ¥8.0 trillion from a year earlier, to ¥1,476.4 trillion.

Looking at the breakdown, stocks and other equities declined ¥10.2 trillion, to ¥90.4 tril-lion.

Investment trusts also decreased, falling ¥3.7 trillion year on year, to ¥53.6 trillion.

Cash and deposits increased for the fifth consecutive year, expanding ¥11.8 trillion, to ¥816.4 trillion and accounting for 55.3% of overall household financial assets. These re-sults continue to indicate that households are giving priority to low risk, secure assets.

Refer to page 22▲

The total amount of stockholdings held by all investor categories at the end of March 2011 dropped ¥29.3 trillion, to ¥310.8 trillion. A ma-jor deterioration in stock prices resulting from concern about the Great East Japan Earth-quake and the seriousness of the following nu-clear power plant accident contributed to the overall decline in stockholdings.

Looking at year-on-year stock investment trends by investor category, on a market value basis, holdings by foreigners were up 0.7 per-centage points compared with iscal 2009 and holdings by individuals and others rose 0.2 per-centage points year on year. Conversely, hold-ings by domestic companies fell, with holdhold-ings by insurance companies declining 0.6 percent-age points and holdings by business corpora-tions edging down 0.1 percentage points com-pared with a year earlier.

Refer to page 23▲

(End of F ) (%)

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

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

Stocks and Other Equities Others

Bonds

Insurance and Pension Reserves Cash and Deposits

Investment Trusts

om osition of ouse old Financial ssets

(End of F ) (%) 0 10 20 30 40 50 60 70 80 90 100 10 09 08 07 06

Stock oldin s by y e of In estors market alue basis

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.

6. In April 2010, the Jasdaq Securities Exchange merged with the Osaka Securities Exchange, with the Jasdaq and NEO markets becoming part of the OSE market. Consequently, starting with iscal 2009, the igures for the two markets (Jasdaq and NEO) have been combined. In addition, retroac-tive adjustments have been made to available igures back to iscal 2004.

Source: Tokyo Stock Exchange

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Member Firms

11 Member Firms

2

１ Member Firms

As of March 31, 2011, the number of regular members (securities irms) totaled 293, declin-ing by 12 from the previous year. The number of regular members decreased for the second consecutive year primarily because many mem-bers quit the association due to cessation of their inancial instruments business.

Refer to page 24▲

The number of special members (banks and other registered inancial institutions) as of the end of March 2011 was 219, declining by 4 i-nancial institutions from last year. A break-down by categories shows 6 city banks (un-changed), 14 trust banks (un(un-changed), 63 regional banks (down by 1), 42 second-tier re-gional banks (unchanged), 40 shinkin banks (unchanged), 12 life insurance companies (un-changed), 5 non-life insurance companies (down by 3) and 15 foreign banks (unchanged), and others.

Refer to page 24▲

(End of F ) Source: Japan Securities Dealers Association

-20 -15 -10 -5 0 5 10 15 20 25

10 09 08 07 06 05 04 03 02 01

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

240 250 260 270 280 290 300 310 320 330

e ular Members Securities Firms

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

0 50 100 150 200 250

10 09 08 07 06 05 04 03 02 01

Second-tier Regional Banks

Other

Regional Banks Shinkin Banks

City Banks and Trust Banks

Non-Life Insurance Companies Life Insurance Companies

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Member Firms

12 Member Firms

FACT BOOK

2011

２ Regular Members’ Employees

３ Securities Firms’ Domestic Offices

At December 31, 2010, the number of em-ployees of member irms was 92,000, declin-ing by about 1,000 from last year. It was the second consecutive year that the number of employees has dropped.

Refer to page 24▲

As of the end of March 2011, securities irms had 1,563 domestic branches, adding 13 branches from a year earlier. The number of business offices was 363, down 24 offices from the end of iscal 2009.

The number of domestic offices including head oices decreased by 23 oices, to 2,219, falling for the second consecutive year.

Refer to page 25▲

(End of C ) Source: Japan Securities Dealers Association

75 80 85 90 95 100

10 09 08 07 06 05 04 03 02 01

umber of Securities Firms m loyees

(Thousands)

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

10 09 08 07 06 05 04 03 02 01

Head Oice Branches Business Oices

e ular Members Domestic

ces

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Member Firms

13

４ Securities Sales Representatives

５ Examinees of Securities Sales Representative

At December 31, 2010, there were approxi-mately 534,000 securities sales representa-tives, a decrease of about 6,000 sales represen-tatives year on year.

The number of securities sales representatives belonging to regular members was 76,000, de-clining about 1,000 from the previous year. The number of securities sales representatives be-longing to special members was 362,000, an in-crease of about 2,000 sales representatives from a year earlier. Financial instruments inter-mediary service providers had about 96,000 se-curities sales representatives, down by about 6,000 sales representatives from the prior year.

Refer to page 25▲

In 2010, the number of candidates taking the sales representative qualiication examina-tion for Class-1 Sales Representative was 57,000, falling by 4,000 from a year earlier, while the number of candidates taking the ex-amination for Class-2 Sales Representative was 61,000, down 15,000 candidates from last year. The number of candidates taking the examination for Special Member ’s Class-1 Sales Representative was 13,000, declining by 2,000 from the prior year, while the number of candidates taking the examination for Spe-cial Member’s Class-2 Sales Representative was 56,000, down 53,000 candidates from the previous iscal year.

Refer to page 25, 26▲

(End of C ) Regular Members

Special Members

Financial Instruments Intermediary Service Providers belonging to Regular Members Financial Instruments Intermediary Service Providers belonging to Special Members

0 100 200 300 400 500 600 10 09 08 07 06 (Thousands)

Securities Sales e resentati es

Note: Excluding representatives of inancial instruments intermediary service providers that are individuals rather than companies. Source: Japan Securities Dealers Association

0 20 40 60 80 100 120 10 09 08 07 06 (Thousands) (%) 0 10 20 30 40 50 60

umber of aminees of Securities Sales e resentati e

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

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

Class-2 (No. of Examinees)

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

(C ) Note: Class-1 Sales Representatives are authorized to engage in all duties of sales

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

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Performance of Securities Industry

14 Performance of Securities Industry

3

１ Operating Revenues of Member Securities Firms

２ Operating Expenses of Member Securities Firms

In the fiscal year 2010 ended March 2011, total operating revenues of the 288 irms in the securities industry amounted to ¥2,918.8 billion, decreasing ¥462.9 billion, or 13.7%, from the previous year.

The increase can mainly be attributed to several major factors. Securities irms posted lower trading gains because of the slump in the domestic stock market arising from such reasons as the appreciation of the yen caused by fiscal problems in European countries and the market turmoil created by the Great East Japan Earthquake that occurred in March 2011. In addition, commissions did not do well because of a decline in the number of capital increase deals and because brokerage commissions from individual in-vestors were stagnant.

Among operating revenues, commissions de-creased ¥228.1 billion, or 10.7%, to ¥1,900.1 billion, while trading gain contracted ¥ 264.8 billion, or 32.9%, to ¥540.0 billion. Financial revenues, howev-er, increased ¥11.8 billion, or 2.8%, to ¥428.8 billion.

Note: While there were a total of 293 securities irms at the end of March 2011, 5 domestic securities irms not op-erating because of business suspensions or other rea-sons were excluded from industry igures.

Refer to page 26▲

Operating expenses for the fiscal year 2010 ended March 2011 decreased ¥155.3 billion, or 5.1%, to ¥2,886.3 billion.

Among operating expenses, transaction ex-penses dropped ¥5.8 billion, or 1.2%, to ¥497.0 billion; employment cost declined ¥97.9 billion, or 8.1%, to ¥1,104.6 billion; real estate and equipment expenses contracted ¥22.4 billion, or 7.3%, to ¥284.6 billion. On the other hand, data processing and office supplies expenses in-creased ¥11.9 billion, or 2.9%, to ¥425.7 billion. As a whole, selling and general administrative costs fell ¥155.9 billion, or 5.6%, to ¥2,617.6 billion. Financial expenses edged up ¥700.0 mil-lion, or 0.3%, to ¥268.7 billion.

Refer to page 26▲

0.0 1.0 2.0 3.0 4.0 5.0 11.3 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3 Commission Financial Revenue Trading Gain Others

eratin e enues of Member Securities Firms

(F ended) (Trillion yen)

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

2. Figures for iscal 2010 ended March 2011 are on a preliminary report basis.

(F ended) (Trillion yen)

2. Figures for iscal 2010 ended March 2011 are on a preliminary report basis.

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 11.3 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3

Real Estate Equipment Costs Others

Employment Cost Financial Expenses Transaction Expenses

Data Processing Oice Supplies Costs

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15

３ Current Profits/ Losses of Member Securities Firms

４ Net Income/ Loss and ROE of Member Securities Firms

In iscal 2010 ended March 2011, the indus-try posted current proits of ¥85.5 billion, down a substantial ¥248.0 billion from a year earlier.

Refer to page 27▲

The performance of member securities irms relapsed into the red in fiscal 2010, falling from a net income of ¥202.4 billion to a loss of ¥ 265.8 billion. Return on equity (ROE) was -4.2%, representing a 7.3 percentage point de-cline from the 3.1% recorded in the previous iscal year.

Refer to page 27▲

(F ended)

-0.5 0.0 0.5 1.0 1.5 2.0

11.3 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3

2. Figures for iscal 2010 ended March 2011 are on a preliminary report basis. Source: Japan Securities Dealers Association

urrent Pro ts osses of Member Securities Firms

(Trillion yen)

(F ended) (Trillion yen) (%)

-1.0 -0.5 0.0 0.5 1.0 1.5 2.0

11.3 10.3 09.3 08.3 07.3 06.3 05.3 04.3 03.3 02.3

Net Income (left scale) ROE (right scale)

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

2. ROE is after-tax proits divided by average stockholders equity.

-10 -5 0 5 10 15 20

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16 FACT BOOK

2011

５ Net Income/ Loss by Type of Member Securities Firms

６ ROE by Type of Member Securities Firms

Looking at net income/loss by irm category for the fiscal year 2010 ended March 2011, major securities irms posted a loss of ¥69.5 billion, a drop of ¥ 162.1 billion from fiscal 2009, and other domestic securities irms re-corded a loss of ¥201.8 billion, down ¥289.3 billion. On the other hand, foreign securities irms registered net income of ¥5.5 billion, de-clining ¥16.8 billion from last year but staying in the black.

Refer to page 27▲

Looking at ROE by irm category for the iscal y e a r 2 0 1 0 e n d e d M a r c h 2 0 1 1 , t h e R O E dropped in all categories. The ROE of major se-curities firms was -2.5 % , declining 6.0 per-centage points from the previous fiscal year. The ROE of foreign securities irms fell 4.0 per-centage points compared with iscal 2009, to 1.5%, while the ROE of the rest of domestic securities firms decreased 9.1 percentage points, to -6.6%.

Refer to page 27▲

(F ended) (Billion yen)

Major Firms Foreign Firms Other Domestic Firms

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

-300 -200 -100 0 100 200 300 400

11.3 10.3

09.3 08.3

07.3

et Income oss by y e of Member Securities Firms

-20 -15 -10 -5 0 5 10 15

11.3 10.3

09.3 08.3

07.3

(%)

(F 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 proits divided by average stockholders equity.

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

by y e of Member Securities Firms

(19)

(%)

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

2001 １Q 2.0 2.2 0.6 －0.8

２Q 1.0 1.9 0.1 －1.0

３Q －0.3 0.6 0.1 －1.0

４Q －1.8 －1.6 0.3 －0.5

2002 １Q －1.9 －2.3 0.1 0.3

２Q －0.2 －1.3 0.2 0.9

３Q 1.5 0.5 0.3 0.7

４Q 1.7 0.9 －0.1 0.9

2003 １Q 1.3 1.1 －0.3 0.5

２Q 1.3 0.9 0.0 0.4

３Q 1.1 0.6 －0.3 0.8

４Q 1.9 1.4 －0.4 0.9

2004 １Q 4.2 2.7 0.3 1.2

２Q 3.2 2.5 －0.3 1.2

３Q 2.9 2.5 －0.3 0.7

４Q 0.8 0.8 －0.2 0.3

2005 １Q 1.1 1.7 －0.5 －0.1

２Q 2.0 2.2 －0.2 0.0

３Q 2.0 1.6 0.1 0.2

４Q 2.6 2.0 －0.3 0.9

2006 １Q 2.5 1.8 －0.3 1.0

２Q 2.0 1.4 0.0 0.7

３Q 1.6 0.9 －0.4 1.1

４Q 2.0 1.5 －0.2 0.7

2007 １Q 3.5 2.9 －0.3 0.9

２Q 2.3 1.3 0.0 1.0

３Q 1.7 0.7 －0.2 1.2

４Q 1.9 0.3 0.3 1.3

2008 １Q 1.3 －0.1 0.0 1.4

２Q －0.3 －1.3 －0.3 1.3

３Q －1.1 －1.7 －0.3 0.8

４Q －4.5 －1.5 －0.4 －2.5

2009 １Q －10.3 －6.5 0.0 －3.8

２Q －7.0 －5.6 1.0 －2.3

３Q －6.3 －5.7 1.2 －1.8

４Q －1.5 －4.9 1.5 1.9

2010 １Q 5.6 0.9 1.1 3.6

２Q 3.1 0.8 0.4 1.9

３Q 5.0 3.5 0.2 1.4

４Q 2.2 2.0 －0.5 0.6

Source: Cabinet Oice

Statistica ata

4

Statistical Data

17

１ Economic Overview

Real GDP Growth Rate

(20)

Statistical Data

18 Statistica ata

FACT BOOK

2011

Corporate Proits (all industries, all scales of businesses)

FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Current Proits

(Trillion yen) 28.2 31.0 36.1 44.7 51.6 54.3 53.4 35.4 32.1 50.3

Current Proit to

Sales Ratio(%) 2.1 2.3 2.7 3.1 3.4 3.5 3.4 2.4 2.3 3.6

Note: The iscal 2010 igures for current proit and current proit to sales ratio are preliminary report igures. Source: Ministry of Finance

Consumer Price and Corporate Goods Price Indices (change from the previous year)

(%)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Consumer Price Index

(excluding fresh food) －0.8 －0.9 －0.3 －0.1 －0.1 0.1 0.0 1.5 －1.3 －1.0

Corporate Goods Price Index

(inal consumer goods) －1.4 －1.9 －1.6 －0.6 0.0 －0.2 0.2 1.0 －4.2 －1.1

Note: Figures are annual average.

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

Employment Conditions

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Unemployment Rate

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

Job-ofers to Seekers Ratio

(excluding new school gradu-ates but including part-time workers) (Ratio (Times))

0.59 0.54 0.64 0.83 0.95 1.06 1.04 0.85 0.48 0.52

Note: Figures are annual average (seasonally adjusted).

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

(Billion yen)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TSE 1st Section 812 775 971 1,316 1,874 2,598 3,001 2,320 1,517 1,447

Sources: Tokyo Stock Exchange

２ Stock Market

(21)

Statistical Data

19 Number of Newly Listed Companies and IPO Amounts

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Number of Newly

Listed Companies 168 123 118 171 157 181 117 48 17 21

IPO Amounts

(Billion yen) 368 147 347 421 402 594 176 43 33 207

Note: IPOs include public oferings by foreign companies when listing on Japanese markets. Source: Japan Securities Dealers Association

(Trillion yen)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

JGBs 3,863.4 3,429.8 4,836.1 6,178.6 6,428.0 8,881.7 11,890.1 11,118.4 8,458.1 7,453.2

Short-term JGBs 2,243.2 1,489.9 1,933.6 2,179.2 1,817.5 1,872.1 2,554.9 2,680.6 3,083.9 2,646.5

Super-long-term, Long-term,

Medium-term JGBs 1,619.9 1,939.6 2,902.2 3,999.1 4,610.5 7,009.5 9,335.3 8,437.8 5,374.0 4,806.5

Others 194.9 236.4 274.4 303.1 330.2 271.3 206.5 169.7 105.4 100.9

Total 4,058.0 3,665.9 5,110.2 6,481.4 6,758.2 9,153.0 12,096.7 11,288.1 8,563.3 7,553.9

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

３ Bond Market

OTC Bond Trading (including Repos)

Equity Financing (paid-in capital increase) by Corporations

(Billion yen)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Public Oferings 1,372 223 653 994 884 1,659 511 362 4,968 3,320

Rights Oferings 32 － 2 11 4 3 9 0 0 1

Private Placements

and Others 847 1,566 2,808 2,150 2,509 1,220 1,626 1,116 1,366 655

Total 2,252 1,789 3,464 3,156 3,397 2,883 2,147 1,479 6,334 3,977

Notes: 1. Initial public oferings made in conjunction with the listing of shares on exchanges before April 2007 are not included in the calculations. 2. “—“ indicates nil. “0” indicates less than 1 unit amount.

(22)

Statistical Data

20 FACT BOOK

2011

Amount of Bond Issuance

(Billion yen)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

JGBs 133,970 147,831 154,686 175,268 186,155 175,684 140,455 125,752 145,660 165,823

Municipal Bonds 2,299 2,582 4,264 5,251 6,152 6,031 5,704 5,874 7,439 7,608

Gov.-guaranteed

Bonds 4,815 4,216 6,476 8,243 7,821 4,434 4,462 4,494 4,925 4,540

FILP Agency Bonds 546 2,408 2,457 3,188 4,187 4,493 4,557 4,472 4,599 4,998

Straight Corporate

Bonds 8,609 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493 9,678

Others 23,630 17,013 15,749 15,460 15,760 13,425 12,151 8,824 5,997 5,841

Total 173,869 181,786 191,360 213,289 227,163 210,925 176,586 158,540 180,113 198,488

Composition of Bond Issuance

(%)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

JGBs 77.1 81.3 80.8 82.2 81.9 83.3 79.5 79.3 80.9 83.5

Municipal Bonds 1.3 1.4 2.2 2.5 2.7 2.9 3.2 3.7 4.1 3.8

Gov.-guaranteed

Bonds 2.8 2.3 3.4 3.9 3.4 2.1 2.5 2.8 2.7 2.3

FILP Agency Bonds 0.3 1.3 1.3 1.5 1.8 2.1 2.6 2.8 2.6 2.5

Straight Corporate

Bonds 5.0 4.3 4.0 2.8 3.1 3.3 5.2 5.8 6.4 4.9

Others 13.6 9.4 8.2 7.2 6.9 6.4 6.9 5.6 3.3 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. Excluding private placement municipal bonds. Since 2008, the igures have excluded private placement municipal bonds, private placement special bonds, and private placement bonds.

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

Corporate Bond Financing

(Billion yen)

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Straight Corporate

Bonds 8,609 7,736 7,728 5,879 7,088 6,858 9,258 9,125 11,493 9,678

Convertible-type Bonds with

Subscription Rights 300 427 72 561 889 1,424 127 653 287 171

Total 8,909 8,163 7,800 6,440 7,977 8,282 9,385 9,778 11,780 9,849

Notes: 1. Straight Corporate Bonds include Asset Backed Bonds.

(23)

Statistical Data

21

(Billion yen)

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Unit Type 617 697 1,161 1,799 1,945 1,875 1,876 1,287 1,522 1,266

Open Type

(excluding ETFs) 13,398 13,165 17,216 22,522 35,180 49,665 61,029 37,029 46,430 48,588

ETFs 889 2,509 2,962 3,113 3,703 4,116 3,878 2,524 2,290 2,610

Total 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 50,243 52,464

Note: Calculation of ETFs began in July 2001. Source: The Investment Trusts Association

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

(Billion yen)

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Stock Investment

Trusts 5,040 6,469 9,388 14,646 24,723 32,186 35,406 24,967 28,976 29,912 Bond Investment

Trusts 1,066 911 995 949 919 800 623 587 691 714

Total 6,106 7,381 10,384 15,596 25,642 32,987 36,030 25,555 29,667 30,626

Net Assets Held in Private Placement Contractual-type Investment Trusts

(Billion yen)

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Publicly Ofered

Investment Trusts 45,280 36,016 37,435 40,996 55,347 68,927 79,760 52,146 61,455 63,720 Real-estate

Investment Trusts 236 441 766 1,246 2,050 3,153 3,687 3,968 4,020 3,909 Private Placement

Investment Trusts 6,106 7,381 10,384 15,596 25,643 32,987 36,030 25,555 29,667 30,626

Total 51,624 43,839 48,586 57,839 83,040 105,067 119,478 81,670 95,142 98,255

Note: Real-estate Investment Trusts were irst introduced in September 2001. Source: The Investment Trusts Association

４ Investment Trusts

Net Assets Held in Investment Trusts

(Billion yen)

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Stock Investment

Trusts 14,905 16,372 21,339 27,435 40,828 55,657 66,784 40,842 50,243 52,464 Bond Investment

Trusts 22,652 14,121 11,746 9,955 11,498 10,576 10,059 8,691 8,755 9,026 Money Management

Funds 7,722 5,521 4,350 3,606 3,020 2,693 2,917 2,612 2,456 2,229

Total 45,280 36,015 37,435 40,996 55,347 68,927 79,760 52,146 61,455 63,720

(24)

Statistical Data

22 FACT BOOK

2011

(Billion yen)

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cash and Deposits 765,432 765,661 772,284 778,662 774,876 775,370 781,736 792,912 804,543 816,386

Bonds 41,834 34,580 32,258 37,274 40,395 43,249 44,513 43,159 41,847 38,156

Stocks and Other

Equities 85,357 72,107 117,499 131,763 194,000 194,624 113,458 82,304 100,638 90,416

Insurance and

Pension Reserves 418,951 426,496 415,860 415,442 413,656 421,475 428,384 428,062 419,640 419,885

Others 69,004 79,450 75,898 66,389 68,678 67,004 61,914 57,568 61,144 58,552

Total 1,411,014 1,406,296 1,446,849 1,466,117 1,543,774 1,566,441 1,493,054 1,451,250 1,484,505 1,476,403

Household Financial Assets

(%)

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cash and Deposits 54.2 54.4 53.4 53.1 50.2 49.5 52.4 54.6 54.2 55.3

Bonds 3.0 2.5 2.2 2.5 2.6 2.8 3.0 3.0 2.8 2.6

Stocks and Other

Equities 6.0 5.1 8.1 9.0 12.6 12.4 7.6 5.7 6.8 6.1

Investment Trusts 2.2 2.0 2.3 2.5 3.4 4.1 4.2 3.3 3.8 3.6

Insurance and

Pension Reserves 29.7 30.3 28.7 28.3 26.8 26.9 28.7 29.5 28.3 28.4

Others 4.9 5.6 5.2 4.5 4.4 4.3 4.1 4.0 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 beneiciary rights. Source: Bank of Japan

Composition of Household Financial Assets

(Billion yen)

FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Securities Other

than Stocks 15,747 11,304 5,831 13,921 13,251 9,976 3,709 －1,567 8,285 4,462 Stocks and Other

Equities 1,685 788 －8,318 －2,249 －3,329 －136 1,403 869 1,130 256

Foreign Securities 4,428 4,112 7,055 3,592 4,313 840 －1,536 －1,834 －1,388 2,681

Source: Bank of Japan

５ Investor Trends

Investments by Institutional Investors (Insurance Companies and Pension Funds)

(Billion yen)

FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Securities Other

than Stocks －7,125 －6,676 －1,264 7,940 12,553 12,433 10,714 －672 226 －4,432 Stocks and Other

Equities －1,465 －1 －2,435 1,252 －1,968 －3,517 －498 2,244 －755 290

Foreign Securities 1,783 842 －380 －503 163 －155 2,135 1,541 －223 1,456

Source: Bank of Japan

(25)

Statistical Data

23

(%)

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Individuals 19.7 20.6 20.5 21.3 19.9 18.7 18.7 20.5 20.1 20.3

Governments 0.2 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.3 0.3

Financial Institutions 19.9 20.1 18.3 16.9 15.9 15.1 14.6 16.0 15.5 15.6

Pension Trusts 6.0 5.8 4.5 3.9 3.5 3.5 3.5 3.5 3.4 3.2

Investment Trusts 3.3 4.0 3.7 3.8 4.3 4.6 4.8 5.0 4.7 4.4

Insurance

Companies 10.2 9.3 8.0 7.4 7.2 7.5 7.5 7.4 7.0 6.4 Business

Corporations 21.8 21.5 21.8 22.1 21.3 20.8 21.4 22.6 21.3 21.2

Foreigners 18.3 17.7 21.8 23.3 26.3 27.8 27.4 23.5 26.0 26.7

Securities Firms 0.7 0.9 1.2 1.2 1.4 1.8 1.5 1.0 1.6 1.8

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.

6. In April 2010, the Jasdaq Securities Exchange merged with the Osaka Securities Exchange, with the Jasdaq and NEO markets becoming part of the OSE market. Consequently, starting with iscal 2009, the igures for the two markets (Jasdaq and NEO) have been combined. In addition, retroactive adjustments have been made to available igures back to iscal 2004.

Source: Tokyo Stock Exchange

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

(Billion yen)

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Individuals 61,033 48,679 75,599 84,740 117,977 108,419 76,653 54,345 68,469 63,040

Governments 533 538 789 722 977 1,866 1,567 1,137 1,152 940

Financial Institutions 61,797 47,553 67,554 67,402 94,097 87,678 59,843 42,541 52,628 48,575

Pension Trusts 18,696 13,630 16,581 15,430 20,927 20,185 14,149 9,364 11,697 9,963

Insurance

Companies 31,687 21,988 29,566 29,441 42,688 43,452 30,875 19,652 23,728 20,017 Busineass

Corporations 67,578 50,789 80,489 88,077 126,167 121,043 87,649 60,030 72,542 66,031

Foreigners 56,733 41,824 80,604 92,765 155,978 161,400 112,222 62,373 88,295 83,037

Securities Firms 2,170 2,088 4,494 4,596 8,198 10,385 6,293 2,711 5,341 5,569

Total 310,533 236,476 369,281 398,396 592,550 581,297 408,992 265,535 339,812 310,783

(26)

Statistical Data

24 FACT BOOK

2011

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

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

Government-ailiated

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

Regional Banks 64 64 64 64 64 64 64 64 64 63

Second-tier Regional

Banks 56 53 50 48 47 46 45 44 42 42

Shinkin Banks 38 38 36 35 37 37 38 39 40 40

Life Insurance

Companies 19 18 17 17 16 16 12 12 12 12 Non-Life Insurance

Companies 17 14 14 13 13 13 10 8 8 5

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

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

Securities Finance

Companies 1 1 1 1 1 1 1 2 3 3

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

Other Banks 4 4 4 6 5 5 9 10 10 10

Total 231 222 216 215 219 217 220 223 223 219

Note: Shinkin Banks include Shinkin Banks and Shinkin Central Bank. Source: Japan Securities Dealers Association

Number of Special Members (Registered Financial Institutions) by Category

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Employees 96,692 89,294 85,027 86,406 87,913 92,661 99,139 99,200 93,308 92,056 Source: Japan Securities Dealers Association

Regular Members’ Employees

２ Member Firms

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Regular Members 290 281 266 267 289 308 317 321 305 293

Enrollment 19 18 8 7 30 33 22 25 10 12

Withdrawal 22 27 23 6 8 14 13 21 26 24

Notes: 1. Withdrawal includes the decrease in the number of regular members due to mergers, etc. 2. The companies that withdrew efective March 31 are included in the withdrawal of next iscal year. Source: Japan Securities Dealers Association

Regular Members (Securities Firms)

(27)

Statistical Data

25

End of FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Head Oice 290 281 266 267 289 308 317 321 305 293

Branches 1,683 1,565 1,511 1,529 1,514 1,534 1,561 1,575 1,550 1,563

Business Oices 276 257 263 281 324 372 418 419 387 363

Total 2,249 2,103 2,040 2,077 2,127 2,214 2,296 2,315 2,242 2,219

Number of Securities Firms’ Domestic Oices

３

End of CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Regular

Members 75,107 72,069 67,539 69,298 71,965 76,054 81,260 81,198 77,265 75,913

Special

Members 367,485 363,470 362,908 356,353 345,374 357,542 349,261 354,559 360,071 362,095

Financial Instruments Intermediary Service Providers belonging to Regular Members

－－－－ 1,144 1,870 2,134 2,056 1,944 2,120

Financial Instruments Intermediary Service Providers belonging to Special Members

－－－－ 11 13 98,433 99,092 100,658 94,024

Total 442,592 435,539 430,447 425,651 418,494 435,479 531,088 536,905 539,938 534,152

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

Number of Securities Sales Representatives

４

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Class-1

(No. of Examinees) 14,761 10,135 5,544 25,452 91,739 74,148 61,716 60,635 61,108 57,099

Class-2

(No. of Examinees) 12,646 9,313 6,060 61,705 133,648 102,635 85,559 87,647 75,797 60,999

Special Member's Class-1

(No. of Examinees) 39,817 30,807 22,843 11,754 14,266 21,715 15,995 15,233 15,575 13,152

Special Member's Class-2

(No. of Examinees) 44,746 39,297 30,434 23,666 44,090 75,680 70,160 67,978 108,691 56,103

Total 111,970 89,552 64,881 122,577 283,743 274,178 233,430 231,493 261,171 187,353

Notes: 1. Class-1 Sales Representatives are authorized to engage in all duties of sales representative, while Class-2 Sales Representatives are authorized to en-gage in the duties of sales representative of Class-1 Sales Representatives with the exception of securities-related derivatives and bonds with options transactions and margin, etc. transactions.

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

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

Number of Examinees of Securities Sales Representative

(28)

Statistical Data

26 FACT BOOK

2011

（％）

CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Class-1 50.2 57.0 75.2 75.4 66.8 54.2 52.1 49.9 47.0 42.6

Class-2 77.2 68.0 79.9 72.8 66.5 57.9 58.4 54.9 55.5 53.7

Special Member's

Class-1 50.8 43.3 57.0 48.9 55.4 49.7 42.8 39.0 38.5 34.8

Special Member's

Class-2 56.3 58.0 66.6 55.7 55.8 49.9 47.6 42.6 39.9 38.9

Notes: 1. Class-1 Sales Representatives are authorized to engage in all duties of sales representative, while Class-2 Sales Representatives are authorized to en-gage in the duties of sales representative of Class-1 Sales Representatives with the exception of securities-related derivatives and bonds with options transactions and margin, etc. transactions.

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

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

Pass Rate of Securities Sales Representative Examination

（Billion yen）

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Commission 1,669 1,469 2,046 2,221 3,195 2,956 2,830 1,797 2,128 1,900

Trading Gain 401 549 871 723 1,078 856 579 435 804 540

Financial Revenue 433 362 369 434 622 847 1,150 860 417 428

Others 1 5 7 9 15 24 23 62 31 49

Operating Revenues 2,505 2,386 3,294 3,388 4,911 4,686 4,582 3,156 3,381 2,918 Note: 1. Securities irms that were not in business as of the end of March in each year are excluded.

Operating Revenues of Member Securities Firms

Performance of Securities Industry

１

（Billion yen）

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Selling and General

Administration Costs 2,266 2,040 2,221 2,319 2,793 3,043 3,123 2,761 2,773 2,617

Transaction Expenses 352 328 379 422 536 586 581 523 502 497

Employment Cost 1,116 972 1,096 1,105 1,345 1,431 1,390 1,122 1,202 1,104

Real Estate &

Equipment Costs 302 278 266 262 265 299 325 319 307 284 Data Processing &

Oice Supplies Costs 272 263 270 295 314 365 419 424 413 425

Others 222 197 206 233 331 359 407 371 347 304

Financial Expenses 273 223 285 335 436 646 879 705 268 268

Operating Costs 2,540 2,263 2,506 2,654 3,230 3,689 4,002 3,467 3,041 2,886 Note: 1. Securities irms that were not in business as of the end of March in each year are excluded.

Operating Expenses of Member Securities Firms

(29)

Statistical Data

27

(Billion yen)

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Current Proits/

Losses －17 135 793 758 1,699 1,015 657 －243 333 85

Note: 1. Securities irms that were not in business as of the end of March in each year are excluded. 2. Figures for iscal 2010 ended March 2011 are on a preliminary report basis.

Current Proits/ Losses of Member Securities Firms

３

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Net Income

（Billion yen）－348 －169 508 483 1,136 588 －145 －346 202 －265

ROE

（％）－6.0 －3.5 10.1 8.7 17.7 7.9 －1.9 －5.0 3.1 －4.2

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

Net Income/ Loss and ROE of Member Securities Firms

４

(Billion yen)

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Major Firms －44 53 231 214 463 332 －267 －110 92 －69

Foreign Firms －93 －7 75 91 344 71 －8 －76 22 5

Other Domestic Firms －211 －215 201 177 328 183 130 －159 87 －201

Net Income/ Loss by Type of Member Securities Firms

５

(%)

FY ended 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3

Major Firms －1.7 2.7 11.0 9.3 18.2 10.9 －9.7 －4.4 3.5 －2.5

Foreign Firms －11.2 －0.9 9.4 10.8 38.2 7.6 －1.2 －16.6 5.5 1.5

Other Domestic Firms －9.1 －10.2 9.4 7.4 11.0 5.2 3.2 －4.1 2.5 －6.6

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

ROE by Type of Member Securities Firms

(30)

F CT BOO

September ,

tt sda or en ne sroom fact book tml - - ayabacho, Nihombashi Chuo-ku, Tokyo, - Japan TEL - -

-Researc Div

apan Securities Dealers ssociation Edited&published by

Dealers Association. The copyrights are protected under Japan’s copyright laws. Reproduction

(31)

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

CONTENTS

FACT BOOK

2011

1

2

3

4

Securities Market in 2010

1

Member Firms

11

Performance of Securities Industry

14

Statistical Data

17

Economic Overview

Stock Market

Bond Market

Investment Trusts

Investor Trends

1

Member Firms

Regular Members’

Employees

Securities Firms’

Domestic Oices

Securities Sales Representatives

Examinees of Securities Sales Representative

11

12

12

1

1

Operating Revenues of Member Securities Firms

Operating Expenses of Member Securities Firms

Current Proits/ Losses of Member Securities Firms

Net Income/ Loss and ROE of Member Securities Firms

Net Income/ Loss by Type of Member Securities Firms

ROE by Type of Member Securities Firms

01

Securities Market in 2010

1

１

Economic Overview

eal DP ro t ate

02

Securities Market in 2010

FACT BOOK

2011

onsumer Price and or orate oods Price Indices

03

２

Stock Market

Stock Price

ikkei 22 Stock

era e

Daily era e Stock radin alue of S 1st Section

04

Securities Market in 2010

FACT BOOK

2011

uity Financin aid in ca ital increase by or orations

05

３

Bond Market

on term and S ort term Interest ates

06

Securities Market in 2010

FACT BOOK

2011

or orate ond Financin

om osition of ond Issuance 2010

07

４

Investment Trusts

et ssets eld in In estment rusts

08

Securities Market in 2010

FACT BOOK