IR Presentation Material

IR Presentation Material Japan Exchange Group, Inc. January 30, 2013

Contents I. Outline of Japan Exchange Group (JPX) II. Basic Policies of the Medium term Management Plan (FY 2013 FY 2015) III.FY 2012, 3 rd Quarterly Earnings Report IV.Reference Material * Our financial year starts on April 1 and ends on March 31. This English translation is solely for reference purpose and is not a legally definitive translation of the original Japanese text. In the event any differences arise regarding the meaning herein, the original Japanese version will prevail as the official authoritative version. 2

Disclaimer These materials are prepared solely for the purpose of providing information regarding Japan Exchange Group Inc., and as such, they are not intended as any offer or sale of securities or other similar action whether inside or outside Japan. Our securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. These materials contain forward looking statements. These statements are based on our assumptions and beliefs in light of the information currently available to us and are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those we currently anticipate. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward looking statements, which speak only as of the date of these materials. We disclaim any obligation to update any of the forward looking statements contained in these materials to reflect future actual events or developments. 3

Ⅰ. Outline of Japan Exchange Group (JPX) 4

Establishment of Japan Exchange Group (JPX) TSE and OSE, with their respective strengths in cash equities and derivatives, conducted a business combination in January 2013. The business combination will improve market user convenience and strengthen international competitiveness through expanded scale and greater efficiency. A comprehensive exchange at the global forefront in terms of market scale, featuring the TSE 1 st Section, TOPIX Futures, and JGB Futures A vertical silo group structure spanning listing, trading, and clearing/settlement Dominance of cash equity market, supported by brand power An exchange with the leading domestic share of derivatives trading, featuring Nikkei 225 Futures/Options Operates JASDAQ, a growth market Only listed domestic exchange Japan Exchange Group (Code: 8697) Tokyo Stock Exchange Osaka Securities Exchange Tokyo Stock Exchange Regulation Japan Securities Clearing Corporation 5

Diversified Horizontal/Vertical Business Model Trading available in diverse listed products, from cash equity to derivatives Develop high added value business via vertical integration of listing/trading, clearing/settlement, and information services. Self regulatory Functions JPX Revenue Structure Listing/ Trading Cash Equity Market Cash Equity Growth Market Derivatives Market Professional Market Stable Revenue Variable Revenue Other Clearing Clearing Functions (Cash Equities, Derivatives, OTC) Information related Revenue Trading Participant Fees Settlement Settlement Functions (Cash Equities) Sett Listing related Revenue 3Q FY2012 (Cumulative) (Total of Former TSEG and OSE 1 st & 2 nd Quarters ) 6

Future Vision Your Exchange of Choice Support Economic Growth in Japan and Asia as the Most Preferred Exchange in the Asian Region Japan Revitalize the Japanese economy through the provision of risk money Support pro active investment and overseas development for listed companies by facilitating fund raising Contribute to efficient domestic asset management through the provision of efficient investment opportunities in diverse listed products Asia With global top class economic scale and infrastructure, utilize confidence in the Japanese market to promote the flow of the Japanese & international investment assets into Asia Become a financial hub in Asia, connecting Japanese & international investment needs with Asia s demands for funds Global Leverage geographical advantage within Asia, a global economic growth engine, and secure standing as a global player 7

As the Most Preferred Exchange in the Asian Region Connect Asia with the US, Europe, and Japan and lead Asian growth Expand global network through cooperation with overseas exchanges: 1. 1 Create cooperative relationships for mutual liquidity growth. 2. 2 Support market developments in emerging countries Leading Driver for Asian Growth 1 Competitive and well developed market infrastructure 2 Many Japanese companies supporting Asian development with technology and services 3 Abundant market liquidity 4 JPY 1500 trillion in individual assets 5 Stable and highly transparent regulation Provide developed market system 1. 1 Create fund raising opportunities to enhance Asian infrastructure 2. 2 Provide OTC derivatives clearing functions within the region Strengthen intermediary functions for global investment flow: 1. 1 Provide the world s investors with investment opportunities in Japanese corporations growing alongside Asia 2. 2 Enhance ETF/Derivatives lineup to reflect investment needs in Asia 8

JPX in Asia <Listed Company Market Capitalization> (bil USD) (bil USD) 4,000 3,500 3,680 4,000 3,500 3,000 2,831 2,547 3,000 2,500 2,500 2,000 2,000 1,500 1,150 1,500 1,000 765 1,000 500 500 0 0 JPX SGX HKEX SSE SZSE (As of Dec. 2012) 3,606 <Cash Equity Trading Value> 256 1,106 2,599 2,369 1,518 JPX SGX HKEX SSE SZSE KRX (2012, total year) (mil contracts) 300 250 200 150 100 50 0 206 <Futures (Index/Bond)/ Option Trading Volume> 72 110 1,637 JPX SGX HKEX KRX (2012, total year) (companies) 140 120 100 80 60 40 20 0 46 22 <No. of IPOs> 60 25 129 32 (mil USD) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 9,325 <IPO Funds Raised> 3,615 11,583 5,271 11,082 1,121 0 JPX SGX HKEX SSE SZSE KRX JPX SGX HKEX SSE SZSE KRX (2012, total year) (2012, total year) <Exchange Market Capitalization> (mil USD) 25,000 22,021 20,000 15,000 10,000 5,000 0 4,673 6,587 JPX SGX HKEX (As of Jan. 22, 2013) (Note) Data from homepages of WFE, FIA, JPX, SGX, HKEX. JPX: Japan Exchange Group, SGX: Singapore Exchange, HKEX: Hong Kong Exchanges & Clearing, SSE: Shanghai Stock Exchange, SZSE: Shenzhen Stock Exchange, KRX: Korea Exchange 9

Creed (The 4 C s) Customer First Prioritize customer needs In order to understand the needs of various stakeholders and to maximize the sum of customer satisfaction, we always think through from the customer's viewpoint and continue to look for the optimum solution. Credibility Build public confidence While we stably operate markets with a high degree of fairness and transparency on a daily basis, we also construct a highly reliable social infrastructure that meets all of the goals of strong competitiveness, stability, convenience, and cost efficiency. Creativity Pursue innovative solutions For the purpose of strengthening global competitiveness and improving customers' convenience, we work on offering creative products and services with the spirit and passion for a challenge, without fear of failure. Competency Harness employee potential We build a working environment in which we can utilize the diversity in individual employees and they can display their ability to the maximum extent. 10

II. Basic Policies of the Medium Term Management Plan (FY 2013 FY 2015) 11

Primary Strategies Early Realization of Business Combination Synergies Early and smooth consolidation of markets, clearing functions and systems Early realization of synergies for both JPX group and market users (Cost reduction, etc.) Expand Derivatives Market Comprehensive Exchange Expand into commodities field to diversify products New Product Development Introduce/Promote products targeting Pan Asian region/emerging markets Enrich/enhance JGB related products based on market changes Review exchange derivatives market in light of OTC derivatives regulations Create a New Japanese Stock Market Improve Japanese Stock Appeal Develop new stock price indices focusing on attractive issues Create rules/environment to improve corporate governance Revise market rules to improve market convenience and price stability Promote diversification of ETFs/REITs Enhance policy recommendation /information dissemination for improving Japanese stock market s appeal Promote IPOs Enhance growth support through IPO promotion Expand Exchange Business Field Expand Clearing Business Handle new OTC products Create New Product Platforms Utilize/promote professional bond market for fund demands of infrastructure building in Asian countries Support knowledge/technology sharing with emerging Asian exchanges Enhance IT Infrastructure Develop next generation arrowhead, enrich Co Location Service, expand arrownet globally, etc. Enhance operations toward expanding investor layers/promoting investment Expand investor layers through +YOU Project, enhance marketing activities to overseas/domestic institutional investors using product/customer foundation of both exchanges Fulfill self regulatory functions in response to market changes Achieve financial goals in Medium term Management Plan (to be released in late March 2013) 12

Consolidation of Markets/Clearing Functions Consolidate markets/clearing functions within JPX group within FY 2013 FY 2012 FY 2013 4Q 1Q 2Q 3Q 4Q Business Combination July 2013 March 2014 Consolidate cash equity market under Tokyo Stock Exchange Consolidate trading system on arrowhead (off auction: ToSTNeT) Cash equity market will be composed of TSE 1 st Section, 2 nd Section, Mothers, JASDAQ, and TOKYO PRO MARKET (OSE 1 st Section/2 nd Section will migrate to TSE 1 st Section/2 nd Section) Consolidate self regulatory functions under Tokyo Stock Exchange Regulation Shift self regulatory functions of derivatives market at the time of the cash equity market consolidation Consolidate clearing functions under Japan Securities Clearing Corporation Further improve risk management functions Improve liquidity and participant capital efficiency via unified margin system Consolidate derivatives market under Osaka Securities Exchange Consolidate trading system on J GATE (using NASDAQ OMX Click XT) Facilitate trading of a wide range of derivatives products on a single platform, including Nikkei 225 products, TOPIX products, and JGB products Facilitate further extension of evening trading hours for TOPIX Futures, JGB Futures, etc. 13

System related Cost Synergy via Consolidation Aim to realize approx. JPY 7 billion in annual system related cost synergy in FY 2015 (compared to FY 2011). FY 2012 FY 2013 FY 2014 FY 2015 Sep. 2012 Jul. 2013 Accelerated amortization of prior OSE s cash equity system July 2013 Cash equity system consolidation Dec. 2012 Mar. 2014 Accelerated amortization of prior TSE derivatives system Increased Depreciation Costs due to accelerated amortization March 2014 Derivatives system consolidation Achieve system related cost synergy Approx. JPY 1.2 Billion Approx. JPY 2.3 Billion (Note) System related cost: costs related to system maintenance/operation, depreciation, etc. Approx. JPY 7 Billion 14

Effect on Revenue due to Consolidation Increase in Trading/Trading Fee Revenue Improved participant/investor convenience via increased products tradable on single platform Increased new listings and new investors via improved liquidity Increased trading from improved margin efficiency for derivatives via clearing function consolidation Enhanced marketing activities via utilization of both exchange foundations Increase in Listing related Revenue Increased IPOs/new listings of domestic/overseas corporations from improved market appeal Increase in Information related Revenue Increased demand for information services from diversified information New Product Development Causes of Increase Business Expansion via Improved Convenience Development of cross over products between exchanges The following decreases are expected, coinciding with the consolidation of the cash equity market (July 2013) and the derivatives market (March 2014). Decrease in Trading Fee Revenue (decrease in overlapping basic fees, etc.) Following Cash Equity/Derivatives Market Consolidation Expected Decrease: approx. JPY 1.2 billion Decrease in Listing related Revenue (decrease in overlapping listing fees) Following Cash Equity Market Merger Expected Decrease: approx. JPY 0.5 billion Decrease in Information related Revenue (change in processing fee structure) Causes of Decrease Lower Usage Costs for Users Following Cash Equity/Derivatives Market Consolidation Expected Decrease: approx. JPY 0.8 billion (Note 1) The above estimations are based on figures up to December 2012, and calculated on an annual basis. Actual results may differ from these estimations. (Note 2) The decrease in trading fees was calculated based only on effects on the cash equity market. Effects on the derivatives market are not included. (Note3) In FY 2013, revenue reduction is expected from July 2013. 15

III. FY 2013, 3 rd Quarter Earnings Report 16

Highlights 3 rd Quarter revenues and profits increased due to solid trades of derivatives from the beginning of the fiscal year and an increase in listed related revenues due to increased fund raising by listed companies and increased IPOs. In regard to annual performance forecast, reflecting positive market conditions, operating revenues and profits such as operating profit have been revised upward. (JPY 1 mil.) 3 rd Quarter (Apr. Dec.) Full Year 3Q FY 2011 3Q FY 2012 (a) Former TSEG & OSE Total Figures (b) Former TSEG (3Q is consolidated with OSE) (c) Former OSE s 1H added to (b) Year on Year (c a)/a [%] FY 2011 (Actual) (d) Former TSEG & OSE Combined Figures (e) JPX (not including former OSE s 1H) FY 2012 (Estimated) (f) Former OSE s 1H added to (e) Year onyear (f d)/d [%] Operating Revenue 55,728 45,935 56,731 +1.8 75,539 67,500 78,295 +3.6 <Average Daily Trading Value/Volume> FY 2011 (Actual) FY 2012 (Assumed) Stock Trading Value 13,695 14,000 (JPY 100 mil) TOPIX Futures 57,840 67,000 (contract) Nikkei 225 Futures (mini: 1/10) 119,300 147,000 (contract) 10yr JGB Future 29,307 40,000 (contract) Nikkei 225 Options 188 220 (JPY 100 mil) (*1) (*2) Operating Costs 43,670 35,283 42,764 2.1 58,008 52,000 59,480 +2.5 Operating Profit 12,058 10,652 13,967 +15.8 17,529 15,500 18,815 +7.3 Ordinary Profit 14,344 12,705 16,333 +13.9 20,060 17,500 21,127 +5.3 (*3) Net Income 8,346 7,313 9,325 +11.7 11,777 9,500 11,512 2.3 *1 Including JPY 613 mil. amortized goodwill *2 Including JPY 1,474 mil. amortized goodwill *3 Including JPY 1,045 mil. (former TSEG: 672 mil., former OSE: 372 mil.) of extraordinary losses from the combination related costs. [Regarding JPX Earnings for this Fiscal Year] As a result of a tender offer for shares of Osaka Securities Exchange Co., Ltd. (former OSE), in which Tokyo Stock Exchange Group, Inc. (former TSEG) made OSE its consolidated subsidiary, Japan Exchange Group, Inc. was established via a business combination on January 1, 2013. The consolidated financial statements of Japan Exchange Group, Inc. created based on this combination succeed the consolidated financial statements of former TSEG in accordance with accounting standards pertaining to corporate combination. Furthermore, because the deemed acquisition date of former OSE by former TSEG is September 30, 2012, the profits and losses of former OSE for the 3 months from October 1, 2012 to December 31, 2012 are included in the consolidated cumulative financial results of former TSEG for this 3rd Quarter. 17

5,000,000,000,000 4,500,000,000,000 4,000,000,000,000 3,500,000,000,000 3,000,000,000,000 2,500,000,000,000 2,000,000,000,000 1,500,000,000,000 1,000,000,000,000 500,000,000,000 0 18 Japanese Stock Market Trends Nikkei 225 (JPY 10) TOPIX (point) 1,200 日 Nikkei 経 平 均 225 TOPIX Abe Administration s Three pronged Strategy for economic recovery: Bold monetary policy Flexible fiscal policy Growth strategy that promotes private investment JPY/USD Rate 95 1,100 円 JPY/USD ドルレート Rate 売 Trading 買 代 金 Value ( 東 証 1 (TSE 部 21 部 st /2 M) nd /Mothers) 2013/1/1 Launch of JPX Lower house decision on US fiscal cliff measures 90 1,000 900 2012/12/16 LDP Election Victory 85 800 80 700 600 2012/2/14 Additional BOJ Monetary Easing 2012/6/25 Spain official requests banking relief from EU 2012/11/14 Noda Prime Minister s announcement of the Lower House dissolution Trading Value (JPY 100 mil.) 75 500 70 400 65

Operating Revenue Conditions Due to increase in derivatives trading, revenues from trading participant fees and securities settlement related revenues increased. Due to increases in listed company fund raising and IPOs, listing related revenues increased. Informationrelated Revenue 469 Other 119 (JPY 1 mil.) 3Q FY 2011 (cumulative) (Total of Former TSEG & OSE) 3Q FY 2012 (cumulative) (Total of Former TSEG & OSE s 1H) 19

Operating Cost Conditions Large decrease in depreciation in 3Q FY2012 compared to the previous period due to accelerated system amortization of former TSEG before the business combination being included in FY2011. Other costs increased due to start of goodwill amortization (20 year annual amortization), etc. (JPY 1 mil.) 43,654 Personnel Costs 380 Real Estate Costs 20 Depreciation Costs 1,913 Including JPY 613 mil. of Goodwill Amortization System Maintenance/ Operation Costs +467 42,764 Other +939 3Q FY 2011 (cumulative) (Total of Former TSEG & OSE) 3Q FY 2012 (cumulative) (Total of Former TSEG & OSE s 1H) 20

Composition of Operating Revenues and Costs (JPY 1 mil.) Operating Revenues Operating Costs Stable Revenue Other 7,294 Trading Other Personnel Participant Fees 9,992 10,594 23,164 Informationrelated Revenue 11,192 Securities Settlement related Revenue 7,768 Variable Revenue Listed related Revenue 7,310 Depreciation Cost 8,567 System Maintenance/ Operation Costs 8,852 System related costs Real Estate Costs 4,757 3Q FY 2012 (cumulative) (Total of Former TSEG & OSE s 1H) 21

Basic Policy for Dividends/ Handling of Treasury Shares Basic Policy for Dividends Giving due consideration to the importance of internal reserves for the purpose of development of the system to strengthening competitiveness and improving self regulatory function as an exchange, and for the purpose of being prepared for the risks as the clearing organization, we make it a principle to conduct stable and continuous payment of dividends. Specifically, we aim at a target dividend payout ratio of around 40%. Estimated Dividends for FY2012: JPY 70/share Handling of Treasury Shares Former OSE shares acquired by former TSEG through the tender offer have become JPX s treasury shares due to the business combination on January 1, 2013. However, these shares are schedule to be cancelled by the end of March 2013. 22

IV. Reference Materials 23

Trends in JPX Stock Price (JPY) 5,000 売 Trading 買 代 金 Value ( 修 (Revised) 正 後 ) 株 価 Stock Price 2013/1/1 Effective date of combination, launch of Japan Exchange Group TOB Period for OSE Stock (2012/7/11~2012/8/22) (JPY1 mil.) 12,000 4,500 2011/11/22 Agreement on TSE/OSE Business Combination 10,000 4,000 8,000 3,500 2012/8/29 OSE is made a consolidated subsidiary of TSE 6,000 3,000 2,500 2012/10/29 Board of Directors approves business combination agreement and combination agreement is concluded 4,000 2,000 2,000 0 24

Outline of JPX Stock Code 8697 Listed Exchange Business Year Annual General Shareholders Meeting Record Date No. of Shares per Share Unit No. of Shares Tokyo Stock Exchange 1 st Section, Osaka Securities Exchange JASDAQ (Standard) April 1 st March 31 st June March 31 st 100 shares No. of Authorized Shares: 290,000,000 shares Total Outstanding Shares: 72,906,810 shares (Including 17,999,900 treasury shares*) *Scheduled to be cancelled by the end of March 2013 25

Trends in IPOs (companies) 26

Trends in Trading Volume Share of Japanese Stocks Jan. 2010 arrowhead launch July 2010 Chi X enters Japanese market Oct. 2012 TOB Restrictions Eased 100% 90% 80% 70% 60% OTC 3.23% (Oct. Dec. 2012) SBI Japan-Next 3.40% (Oct. Dec. 2012) Chi-X 2.08% (Oct. Dec. 2012) JPX 91.29% Oct. Dec. 2012) 50% Oct. Dec., 2009 Jan Mar., 2010 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2011 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2012 Apr. Jun. Jul. Sep. Oct. Dec. JPX Chi-X SBIJ OTC 27

Trends in the Japanese Stock Market Nikkei 225 (JPY 10) TOPIX (point) 2,000 1,800 1,600 2006/3/9 BOJ decision to cease quantitative easing 2007/8/10 BOJ provision of JPY 1 tril. In response to growing credit concerns due to sub prime loans 2008/9/15 Bankruptcy of Lehman Brothers ( 修 Nikkei 正 ) 日 225 経 平 均 TOPIX 円 JPY/USD ドルレート Rate 売 Trading 買 代 金 Value ( 東 証 (TSE 1 部 2 部 1 st /2 マザーズ) nd /Mothers) JPY/USD Rate (JPY) 125 115 1,400 1,200 10,000,000 9,000,000 8,000,000 7,000,000 2006/7/14 BOJ decision to cease zero interest measures 2012/12/16 LDP election victory 2011/3/11 Great East Japan Earthquake 2012/11/14 Noda Prime Minister s announcement of the Lower House dissolution 105 95 1,000 800 600 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 2004/7/1 BOJ June Tankan Good conditions for major manufacturers, record high since Bubble 2012/2/14 Additional BOJ financial easing 85 Trading Value (JPY 100 mil.) 75 1,000,000 400 2004 年 2005 年 2006 年 2007 年 2008 年 2009 年 2010 年 2011 年 2012 年 2013 年 65 28 0 37991 37999 38006 38013 38020 38027 38035 38042 38049 38056 38063 38070 38077 38084 38091 38098 38105 38118 38125 38132 38139 38146 38153 38160 38167 38174 38181 38189 38196 38203 38210 38217 38224 38231 38238 38245 38254 38261 38268 38278 38285 38292 38300 38307 38315 38322 38329 38336 38343 38351 38363 38370 38377 38384 38391 38399 38406 38413 38420 38427 38435 38442 38449 38456 38463 38470 38483 38490 38497 38504 38511 38518 38525 38532 38539 38546 38554 38561 38568 38575 38582 38589 38596 38603 38610 38621 38628 38636 38643 38650 38657 38665 38672 38680 38687 38694 38701 38708 38716 38728 38735 38742 38749 38756 38763 38770 38777 38784 38791 38799 38806 38813 38820 38827 38834 38846 38853 38860 38867 38874 38881 38888 38895 38902 38909 38917 38924 38931 38938 38945 38952 38959 38966 38973 38981 38988 38995 39003 39010 39017 39027 39034 39041 39049 39056 39063 39070 39077 39087 39097 39104 39111 39118 39126 39133 39140 39147 39154 39161 39169 39176 39183 39190 39197 39209 39216 39223 39230 39237 39244 39251 39258 39265 39272 39280 39287 39294 39301 39308 39315 39322 39329 39336 39344 39352 39359 39367 39374 39381 39388 39395 39402 39412 39419 39426 39433 39441 39454 39462 39469 39476 39483 39491 39498 39505 39512 39519 39526 39534 39541 39548 39555 39562 39570 39581 39588 39595 39602 39609 39616 39623 39630 39637 39644 39652 39659 39666 39673 39680 39687 39694 39701 39709 39717 39724 39731 39741 39748 39756 39763 39770 39778 39785 39792 39799 39807 39819 39827 39834 39841 39848 39856 39863 39870 39877 39884 39891 39899 39906 39913 39920 39927 39940 39947 39954 39961 39968 39975 39982 39989 39996 40003 40010 40018 40025 40032 40039 40046 40053 40060 40067 40074 40086 40093 40101 40108 40115 40123 40130 40137 40147 40154 40161 40168 40176 40185 40193 40200 40207 40214 40224 40231 40238 40245 40252 40260 40267 40274 40281 40288 40295 40308 40315 40322 40329 40336 40343 40350 40357 40364 40371 40379 40386 40393 40400 40407 40414 40421 40428 40435 40443 40451 40458 40466 40473 40480 40490 40497 40504 40512 40519 40526 40533 40541 40550 40560 40567 40574 40581 40589 40596 40603 40610 40617 40625 40632 40639 40646 40653 40660 40673 40680 40687 40694 40701 40708 40715 40722 40729 40736 40744 40751 40758 40765 40772 40779 40786 40793 40800 40808 40816 40823 40833 40840 40847 40855 40862 40869 40877 40884 40891 40898 40906 40918 40925 40932 40939 40946 40953 40960 40967 40974 40981 40989 40996 41003 41010 41017 41024 41036 41043 41050 41057 41064 41071 41078 41085 41092 41099 41107 41114 41121 41128 41135 41142 41149 41156 41163 41171 41178 41185 41193 41200 41207 41214 41221 41228 41235 41243 41250 41257 41264 41278 41285

Trends in Derivatives Trading Volume (1 mil. contracts) 250 200 150 100 日 Nikkei 経 225オプション Options 日 Nikkei 経 225 225 mini mini 日 Nikkei 経 225 225 先 物 Futures その Other 他 東 TSE 証 Derivatives デリバティブ TOPIX 先 Futures 物 JGBオプション Options JGB 先 Futures 物 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 29

Derivatives Night/Evening Session (1 mil. contracts) 16 14 12 10 8 6 4 2 Sept. 2007 Introduction of evening session for OSE Nikkei 225 Futures/Options (until 7PM) Jun. 2008 Introduction of evening session for TSE TOPIX Futures/Options (until 7PM) 4% 7% 6% Oct. 2008 OSE session extended to 8PM 9% July 2009 OSE session extended to 11:30PM 11% 11% 12% 12% 14% 14% 20% Nov. 2011 TSE session extended to Jun. 2011 11:30PM OSE session renamed Night Session, extended to 3AM 40% 22% 21% 23% 18% 32% 31% 34% 31% 35% (%) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0 Oct. Dec., 2007 Jan Mar., 2008 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2009 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2010 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2011 Apr. Jun. Jul. Sep. Oct. Dec. Jan Mar., 2012 Apr. Jun. Jul. Sep. Oct. Dec. 0% ナイト イブニングセッション Night/Evening Session Trading Volume 取 引 高 ナイト イブニングセッション Ratio of Night/Evening Session to 対 Daytime 日 中 比 率 (Note) Relevant products: Nikkei 225 Futures, Nikkei 225 mini, Nikkei 225 Options, TOPIX Futures, Mini TOPIX, TOPIX Options 30

Expansion of OTC Clearing Business Notional Amount Outstanding (JPY 1 tril.) 120 <Trends in Volume of Yen denominated IRS under Obligation> Contracts under Obligation (contracts) 12,000 100 80 100 10,000 8,000 60 70 6,000 40 20 40 4,000 2,000 0 14 0 October 2012 November 2012 December 2012 January 2013 Notional Amount Contracts under 債 Outstanding 務 負 担 総 残 高 債 務 負 担 総 件 数 Obligation (January 2013 data is as of January 28) 31