Securities Japan

Advantages

• ✓Regulated and controlled primarily through the Japanese Minister of Finance under the New DBJ Act.
• ✓Strong capitalization with total equity of ¥2.54 trillion and total borrowings of ¥13.42 trillion as of March 31, 2013.
• ✓Robust capital adequacy with a consolidated total capital ratio of 15.52% under Basel III guidelines as of March 31, 2013.
• ✓Diversified funding sources including government borrowings, government-guaranteed bonds, non-guaranteed bonds, and private financial institutions.
• ✓Low non-performing loan ratio of 1.23% against total loans as of March 31, 2013, with efforts to manage and categorize loan quality.
• ✓Integrated business model combining both lending and investment services, focusing on long-term financing needs.
• ✓Established risk management system covering credit, market, liquidity, and operational risks with dedicated Risk Management Department.
• ✓No defaults recorded on payment of interest or principal on obligations.
• ✓Extensive crisis response business supported by Japan Finance Corporation and Japanese Government guarantees.
• ✓Comprehensive financial statements audited by Deloitte Touche Tohmatsu LLC, following Japanese GAAP standards.