Japan Exchange Group, Inc. · TSE:8697
Japan Exchange — Sandler O'Neill Global Exchange & Brokerage Conference 2016
20 slides from Japan Exchange's conference presentation, Jun 9, 2016
Slide 1: Investor Presentation: 2nd Medium-Term Management Plan FY2016-FY2018
Investor Presentation Sandler O’Neill Global Exchange & Brokerage Conference 2nd Medium-Term Management Plan FY2016 FY2018 June 9, 2016 © 2016 JAPAN EXCHANGE GROUP, Inc. All Rights Reserved.
Slide 2: JPX Overview: JPX's Business
1 JPX Overview JPX’s Business Notes: 1. Osaka Securities Exchange was renamed Osaka Exchange on Mar. 24, 2014. 2. Tokyo Stock Exchange Regulation was renamed Japan Exchange Regulation on Apr. 1, 2014. 1
Slide 3: JPX Overview: Composition of Operating Revenue
1 JPX Overview Composition of Operating Revenue FY2015 JPY bil. 2
Slide 4: Review of 1st Medium-Term Management Plan: Financial targets
2 Review of 1 st Medium-Term Management Plan FY2013-FY2015 Financial targets JPX achieved targeted JPY 8.5 bil. cost reductions from business integration synergies, and final results were well clear of initial targets. (JPY bil.) Operating revenue Operating expenses Net income*1 120 +39% 114.7 bil.
Slide 5: Review of 1st Medium-Term Management Plan: Core strategies and initiatives
2 Review of 1 st Medium-Term Management Plan FY2013-FY2015 Core strategies and initiatives Cash equity daily trading value • Introduced Corporate Governance Code (JPY tril.) 1 Creation of a new Japanese stock market • Launched JPX-Nikkei 400 index • Promoted IPOs and 3.4 expanded ETF market 1.6 • La
Slide 6: 2nd Medium-Term Management Plan: Your Exchange of Choice
3 2 nd Medium-Term Management Plan FY2016-FY2018 Concept Your Exchange of Choice The Most Preferred Exchange in Asia Mid- to Long-Term Vision Well-balanced business portfolio Pursue the next step forward in developing market infrastructure and services and encouraging investment in the securities ma
Slide 7: Pursue a multi-faceted business portfolio
3 2 nd Medium-Term Management Plan FY2016-FY2018 Pursue a multi-faceted business portfolio Channel resources to strategic investments toward raising overall + 15 operating revenue, with focus on derivatives and new business, JPY bil. by JPY 15 bil. • Expand clearing and settlement services New Busin
Slide 8: Core Initiatives
4 Core Initiatives Satisfying diverse investor needs and Ⅰ encouraging mid- to long-term asset building Ⅱ Supporting listed companies in enhancing corporate value Ⅲ Fulfilling social mission by reinforcing market infrastructure Ⅳ Creating new horizons of exchange business 7
Slide 9: Core Initiatives I: Satisfying diverse investor needs and encouraging mid- to long-term asset building
4 Core Initiatives I Ⅰ Satisfying diverse investor needs and encouraging mid- to long-term asset building Business Environment Rising need for financial literacy Concerns over uncertainty and and portfolio diversification reduced liquidity as Japan makes the transition to a mature economy from strug
Slide 10: Core Initiatives II: Supporting listed companies in enhancing corporate value
4 Core Initiatives II Ⅱ Supporting listed companies in enhancing corporate value Business Environment Attentions turn to the effectiveness of Japan needs more risk money for Japan’s Corporate Governance Code sustainable economic growth following positive feedback since introduction even as corporate
Slide 11: Core Initiatives III: Fulfilling social mission through enhancing market infrastructure
4 Core Initiatives III Ⅲ Fulfilling social mission through enhancing market infrastructure Business Environment Increased importance as public Need to reinforce measures for infrastructure and rising expectations ensuring confidence in light of more sophisticated and complex market for improved mark
Slide 12: Core Initiatives IV: Creating new horizons of exchange business
4 Core Initiatives IV Ⅳ Creating new horizons of exchange business Business Environment Increased dependency of Possible impact on group revenues on existing business models domestic market conditions from tighter global financial regulations and with recovery in Japanese stocks advancements in fina
Slide 13: Financial Policies: Financial targets
5 Financial Policies Financial targets Target *1*4 15 bil. 1st Medium-Term FY2018*3*4 Management Plan (Actual) *2 Operating ＋JPY (FY2013-FY2015) JPY108 bil. JPY 123 bil. Revenue Approx. ＋13％ ＋ Net ＋JPY 8 bil. JPY 40 bil. JPY 48 bil. Income Approx. ＋20％ *1 Targeted revenue and income increase from in
Slide 14: Financial Policies: Capital Policy
5 Financial Policies Capital Policy Invest aggressively to pursue revenue/profit expansion and stability, while balancing sound financial health and shareholder returns, and thereby achieve sustainable development of the market. Increase profits and broaden stable Financial revenue base Resilience S
Slide 15: Appendix: Core Initiatives Details
Appendix Core Initiatives Details
Slide 16: Core Initiatives I details
Core Initiatives I Ⅰ Satisfying diverse investor needs and encouraging mid- to long-term asset building Core Initiatives 1 Promote asset formation 2 Diversify derivatives lineup 3 List attractive products by retail investors • Establish Financial Literacy Support • Expand interest rate-related • Bro
Slide 17: Core Initiatives II details
Core Initiatives II Ⅱ Supporting listed companies in enhancing corporate value Core Initiatives Enhance effectiveness of corporate 1 governance 2 Ensure stable supply of risk money • Grasp a comprehensive picture of developments • Broaden IPO base and improve conditions in Japanese corporate governa
Slide 18: Core Initiatives III details
Core Initiatives III Ⅲ Fulfilling social mission through enhancing market infrastructure Core Initiatives 1 Expand clearing and settlement services and enhance system infrastructure 2 Strengthen BCP and cybersecurity • Introduce more sophisticated risk controls • Fundamental review of BCP • Improve
Slide 19: Core Initiatives IV details
Core Initiatives IV Ⅳ Creating new horizons of exchange business Core Initiatives 1 Enter into new business fields 2 Drive innovation • Launch new OTC clearing services • Pursue development and proof of concept testing of fintech for new exchange business • Create new business capitalizing on integr
Slide 20: Translation Disclaimer and Forward-Looking Statements
(Translation Disclaimer) This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version prevails. Japan Exchange Group, Inc. (“JPX”) and its subsidiaries a
Japan Exchange Group — Sandler O'Neill Global Exchange & Brokerage Conference 2016 on 6ix