Update : Mar. 31, 2004
FY2003 third quarter corporate performance
(1)FY2003 Third Quarter Report (Non-consolidated)
- During the third quarter, operating revenues increased 4.620 billion yen from the third quarter of the previous year to 31.1090 billion yen. Operating expenses increased 1.719 billion yen to 26.2290 billion yen. Operating profits totaled 4.8790 billion yen, an increase of 2.9010 billion yen from the previous year's third quarter. Ordinary profit rose 2.2370 billion yen to 5.9760 billion yen.
- As for a breakdown of income and expenditures, fees from trading participants, which make up operating revenues, exceeded those of the third quarter of the previous year by 2.4040 billion yen, totaling 15.8290 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 significantly from its daily average in the third quarter of FY2002 of 667.3 billion yen to 997.0 billion yen between April and December.
- Additionally, listing revenues increased 0.5370 billion yen from the same period last year. This is due to an increase in newly listed companies (89 during this period, compared to 65 in the same period last year) as well as capital expansion and other increased financing of listed companies.
- Other operating revenues increased 1.8470 billion yen from the third quarter of the previous year. 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 0.1830 billion yen from the third quarter of FY2002 through lower personnel costs resulting from fewer employees.
- Additionally, facilities expenses decreased 0.5430 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 0.3710 billion yen, and clearing handling fees for JSCC increased 2.1790 billion yen.
- Next, we had dividends in the third quarter of the previous year from Japan Securities Settlement & Custody, Inc., a subsidiary company of TSE, totaling 1.5 billion yen, and we posted 3.7390 billion yen for ordinary profit. 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 5.9760 billion yen.
(2)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.
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, for the current third quarter operating revenues were 34.1470 billion yen, operating expenses were 28.2 billion yen, operating profits were 5.9470 billion yen, ordinary profit was 6.8540 billion yen, and net profits after taxes totaled 4.2150 billion yen.
(3)Revision of FY2003 Performance Forecast
- In light of third quarter performance, TSE has revised the performance forecast it released at the time of the interim report.
- Revised non-consolidated performance forecasts are: operating revenue 40.5 billion yen (interim forecast was 39.0 billion yen), ordinary profit 6.6 billion yen (interim forecast was 5.4800 billion yen), and net earnings for this term of 4.3 billion yen (interim forecast was 3.7100 billion yen). Compared to the figures released at the time of the interim report, all have of these have been revised to higher numbers.
- Revised consolidated performance forecasts are: operating revenue 47.0 billion yen (interim forecast was 45.3 billion yen), ordinary profit 7.6 billion yen (interim forecast was 5.9100 billion yen), and net earnings for this term of 4.6 billion yen (interim forecast was 3.7 billion yen). Compared to the figures released at the time of the interim report, these consolidated figures have also been revised to higher numbers.
Resale of treasury stocks
With the goal of forming a group of shareholders who understand TSE's public role and business model and will support our operations over the long-term, TSE plans to resell treasury stock it acquired last year as outlined below.
Firstly, 262,640 shares of common stock will be resold.
Secondly, the price of the stock will be 27,790 yen per share, the same price at which TSE acquired the treasury stock last year.
Thirdly, the application period will be for three days starting March 1, 2004 .
Fourthly, payment will be due March 4, 2004 , the day after application ends.
Following this Board Meeting, there will be a special meeting of shareholders on February 13, where the same matters decided at today's Board Meeting will be approved. Following that, a breakdown by individual sale is planned for resolution at the next Board Meeting on February 17. Delivery is scheduled for March 5.
Lastly, TSE is planning to transfer the shares to 26 persons including companies that have close ties with TSE operations.
Shortening of trading halt period
In accordance with TSE's announcement in December about reviewing the trading halt period, TSE has decided to revise regulations. This will be implemented on February 16, after informing market participants through distribution of pamphlets to securities companies and newspaper advertisements.