- FY2003 interim report
- TSE regulation amendment regarding revision of standard rate fees due to commencement of direct collection of clearing fees by JSCC
- TSE television commercial broadcast in Asian region
(1) Highlights of FY2003 interim report
One notable point of the report is improvement on the revenue side due to recovery in market conditions and continued efforts toward reductions on the cost/expenditure side, the result of which was achievement of substantial increased profits. As we work toward our goal of listing in FY2005, we were able to secure stable profits last fiscal year, which was our first year as an incorporated company, and the fact that we were able to increase those profits during this period (interim) shows that TSE is doing well in terms of business performance.
(2) FY2003 Interim Report (Non-consolidated)
During this period, operating revenues increased 1.954 billion yen to 20.005 billion yen. Operating profits totaled 2.285 billion yen, an increase of 0.695 billion yen from the previous period. Ordinary income rose 0.099 billion yen to 3.346 billion yen.
As for a breakdown of income and expenditures, fees from trading participants, which make up operating revenues, exceeded those of last term by 1.148 billion yen, totaling 10.522 billion yen. This can be attributed to the fact that while standard fixed rate fees decreased due to reductions in the number of trading participants as a result of mergers, domestic stock trading value (within trading hours) increased from its daily average last term of 709.0 billion yen to 910.2 billion yen.
At the same time, listing revenues decreased 0.247 billion yen from last term's total to 3.981 billion yen, a result of reduced financing, such as increased capital, of listed companies.
Other operating revenues increased 1.208 billion yen from last term. This is due in part to cash trading clearing operations fees from Japan Securities Clearing Corporation (JSCC), which commenced operations in January of this year.
Next, operating expenses decreased 0.266 billion yen from the previous term through lower personnel costs resulting from fewer employees and lower employee summer bonuses.
Additionally, facilities expenses decreased 0.369 billion yen with reductions in leasing fees and connection fees due to reduced trading participant terminals.
At the same time, commission fees for new system activation increased 0.201 billion yen, and clearing handling fees for JSCC increased 1.704 billion yen.
For the reasons listed above, total operating expenditures increased 1.259 billion yen. However, it is clear that we have succeeded in continuing to reduce expenses with the exception of clearing handling fees.
Next, we had dividends last term from Japan Securities Settlement & Custody, Inc., a subsidiary company of TSE, totaling 1.5 billion yen, and we posted 3.247 billion yen for ordinary income. In the current term TSE added 0.9 billion yen in dividends from Tosho Computer Systems Co., Ltd. and Japan Securities Depository Center, Inc. (JASDEC), bringing ordinary income to 3.346 billion yen. Therefore, net profits were 2.264 billion yen.
(3) FY2003 Interim Report (Consolidated)
Firstly, an explanation about the "scope of consolidation." TSE has three consolidated subsidiaries: Japan Securities Settlement & Custody, Inc. (JSSC), Tosho System Service Co., Ltd., and Japan Securities Clearing Corporation (JSCC). TSE's three equity method affiliates are: Tosho Computer Systems Co., Ltd., NSB News, and Japan Securities Depository Center, Inc. (JASDEC). This is unchanged from last term.
(Reference)Subsidiary company: In principle, TSE holds more than 50% of shares Equity method affiliate: In principle, TSE holds more than 20% of shares
Regarding consolidated profits and losses, operating revenues include the trading participant fees, listing revenue, and information revenue listed in the TSE non-consolidated report as well as system development and management revenues from Tosho System Service Co., Ltd. and clearing revenues from JSSC and JSCC, bringing this term's earnings total 21.740 billion yen.
Compared to the last interim report, trading participant fees rose 1.148 billion yen, and system development and management revenues rose 0.327 billion yen due to increased Tosho System Service Co., Ltd. sales. At the same time, listing and operating income decreased from last term, and total operating profits were 0.972 billion yen higher than the previous term.
Operating expenses were 18.781 billion yen, a 0.132 billion yen reduction from last term.
As a result, operating revenues increased 1.105 billion yen from last term to 18.781 billion yen, and ordinary income increased 1.060 billion yen from last term to 3.518 billion yen. Just as with the non-consolidated figures, TSE was able to secure profits and revenues exceeding last year. Additionally, net profits were 2.194 billion yen, a 0.704 billion yen increase from last term.
(4) FY2003 Performance Forecast
In light of the recent market environment and performance at interim settlement, TSE has revised the performance forecast it released at the first quarter.
Revised consolidated performance forecasts are: operating revenue 45.3 billion yen, ordinary income 5.91 billion yen, and net earnings for this term of 3.7 billion yen. Forecasted figures at the time of the first-quarter release were: operating revenue 41.9 billion yen, ordinary income 2.95 billion yen, net earnings for this term 1.7 billion yen, all of which were revised to higher numbers. Additionally, performance forecasts for operating revenue and profits were revised to higher numbers in the non-consolidated performance forecasts.
TSE regulation amendment regarding revision of standard rate fees due to commencement of direct collection of clearing fees by JSCC
TSE will revise its regulations in accordance with the outline entitled "Revision of TSE standard fixed rate fees due to commencement of direct clearing fees collection by JSCC" released in September. These will be in effect starting with trading on November 4, 2003.
TSE television commercial broadcast in Asian region
In order to "increase international presence and establish name recognition" as outlined in its interim business plan, TSE will begin broadcast of a television commercial on CNBC Asia on November 4. The commercial will be shown in 17 countries and areas in Asia including China and Korea (available in only certain hotels in Japan).
