Tokai Tokyo Financial Holdings

Basic Information

Stock Code: 8616
Industry: Securities, Commodity Futures Trading
Category Detail: Securities
Prefecture: Tokyo
Establishment Year: June 1929
Listing Year: June 1987
Official Website: https://www.tokaitokyo-fh.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Daiwa Securities Group, Nomura Holdings, Okasan, Marusan, Toyo Securities, Mito, Traders Holdings, Kyokuto Securities, Iwai Cosmo Holdings, Aizawa Securities Group

Overview

Tokai Tokyo Financial Holdings is a securities holding company founded in 1929, with Tokai Tokyo Securities as its core subsidiary based in the Chubu region, offering a wide range of financial services as one of Japan's leading securities groups.

Current Situation

Tokai Tokyo Financial Holdings recorded consolidated revenue of approximately 81 billion yen and net profit of approximately 13.1 billion yen for the fiscal year ended March 2022, maintaining a stable financial base. Its core subsidiary, Tokai Tokyo Securities, has built a strong foundation centered in Nagoya in the Chubu region and is deepening ties with regional bank groups nationwide. It is accelerating business expansion in local markets through joint venture securities firms with multiple regional financial institutions, featuring a strong customer base in the Tokai region. In recent years, it has promoted service diversification, including M&A advisory and insurance shop operations. It is also focusing on diversity management, such as establishing an information site for female investors. It is improving group management efficiency through subsidiary reorganizations and capital alliances. Moving forward, it aims for stable growth and revenue diversification by strengthening alliances with regional banks and agilely responding to changes in domestic and international financial markets.

Trivia

Interesting Facts

Long history with roots in former Tokai Bank lineage securities firm.
Regionally rooted company with one base at Midland Square in Nagoya.
Slogan 'Greatest6' aiming to enter Japan's top six securities firms.
One of few securities groups operating a dedicated site for female investor support 'Maiden's Purse'.
Multiple pioneering domestic achievements in establishing joint venture securities with regional banks.
Operates insurance shop 'Insurance Terrace' and expands beyond securities into financial services.
Builds regional co-creation business model with multiple regional bank groups.
Temporarily made M&A advisory firm Pinnacle a subsidiary before transferring it.
Core subsidiary Tokai Tokyo Securities has strong influence in the Tokai region.
Long-standing strategic capital alliance with Mitsui Sumitomo Insurance.
Awarded by Ministry of Economy, Trade and Industry as a company promoting women's active roles.
Global presence with bases in Hong Kong, Europe, US, and Singapore.
Established IT group to develop and operate digital platforms.
Established as major securities holding company with approx. 2,800 employees.
Maintains stable net assets and total assets on standalone and consolidated bases.

Hidden Connections

Mitsui Sumitomo Insurance is one of the major shareholders, with close ties to the damage insurance industry.
Deep ties to automotive financial services through acquisition of Toyota Financial Service Securities.
Integrated into regional financial ecosystem through joint venture securities with regional banks.
Strong traditional capital and business ties with former Tokai Bank and Chuo Trust Bank lineage.
Specialized in information dissemination for female investors to diversify investments.
Features multifaceted financial services operations with domestic and overseas financial subsidiaries.
Strategically positioned M&A-strong subsidiary Pinnacle but later transferred it.
Focuses on investor education and financial literacy to bolster regional finance.

Future Outlook

Growth Drivers

Customer expansion in local markets through strengthened regional bank alliances
Expansion and sophistication of M&A advisory market
Service enhancement responding to increasing female investor segment
Improved sales efficiency and customer convenience through digital technology introduction
Accelerated overseas expansion through expanded Asian emerging market stock services
Revenue diversification through strengthened insurance market alliances
Growing demand for asset management and inheritance-related services
Brand value enhancement through sustainable management and ESG utilization
Stable customer base growth promotion leveraging regionally rooted sales
Promotion of medium- to long-term management efficiency and group reorganization/integration
Competitive strengthening through IT and digital service innovations
Deepening relations with regional communities through financial education support

Strategic Goals

Market share expansion for joint venture securities with regional banks
Realization of group management efficiency and revenue diversification
Maximizing customer convenience through digital platforms
Establishment of ESG and sustainability-focused management structure
Continuous strengthening of women's active roles and diversity management
Becoming top runner in M&A and advisory business
Strengthened overseas expansion in Asia and local customer base building
Group revenue base strengthening through expanded asset management business
Leading company in regional economic revitalization linked with regional finance
Improved employee satisfaction and productivity through work-style reform promotion

Business Segments

Securities Services for Corporate and Institutional Investors

Overview

Provides asset management and securities-related services to corporate clients, collaborating with regional financial institutions.

Competitiveness

Strong alliances with regional bank networks and diverse financial services

Customers

Regional banks
Shinkin banks
Pension funds
Investment funds
Corporate pensions
Insurance companies
Asset management companies

Products

Stock trading
Bond trading
M&A advisory
Asset management services
Inheritance-related services
Trust agency

M&A Advisory Business

Overview

Supports corporate growth and restructuring through M&A brokerage and consulting.

Competitiveness

Regionally rooted and highly specialized consulting capabilities

Customers

Mid-sized and small enterprises
Corporate executives
Investment funds
Business successors

Products

M&A brokerage
Business valuation
Corporate financial consulting
Negotiation support

Securities Agency and Inheritance-Related Services

Overview

Provides specialized agency services for inheritance and asset management under agency agreements.

Competitiveness

Agency network leveraging former Tokai Bank lineage

Customers

Trust banks
Chuo Trust Bank group customers
Heirs
Asset management companies

Products

Testamentary trust
Inheritance property settlement
Securities agency services
Asset transfer support

Services for Overseas Investment Clients

Overview

Supports stock trading in major Asian markets to meet overseas investor needs.

Competitiveness

Strong network and track record in Asian emerging markets

Customers

Foreign investors
Japanese stock investors
Global asset management companies

Products

China, Korea, India stock brokerage
ADR trading
Overseas market information provision

IT and Digital Solutions

Overview

Supports securities sales efficiency with IT technology and promotes digitalization.

Competitiveness

Group IT collaboration and introduction of latest technologies

Customers

Group companies
Financial institutions
Securities sales offices

Products

Customer management systems
Online trading platforms
Data analysis tools

Education and Training Services

Overview

Provides educational programs to improve financial literacy for employees and customers.

Competitiveness

Abundant financial knowledge and regionally rooted education

Customers

Group employees
Seminar participants for customers
Financial professionals

Products

Securities-related training
Investment education seminars
Asset management seminars

Competitive Advantage

Strengths

Strong regional base centered in the Chubu region
Extensive alliance network with regional banks
Stable revenue base from diverse financial services
Customer-close sales as a face-to-face securities firm
Group synergies from a rich lineup of subsidiaries
Trust from over 36 years of listing history
Strengthened financial position through capital alliances
Diversity management promoting women's active roles
Enhanced expertise in M&A advisory
Strength of Tokai Tokyo Securities' Nagoya headquarters
Customer touchpoints from diverse regional branches
Broad range of asset management and inheritance services
Expansion of Asian market services for overseas
Development and deployment of IT platforms
Uniqueness of insurance shop business

Competitive Advantages

Unique customer base from strong ties with regional bank groups
High brand power specialized in the Chubu region
Customer satisfaction from wide range of financial products and services
Good balance of face-to-face sales and online services
Group synergies from diversified subsidiary operations
Market superiority from regionally rooted M&A advisory
Long track record and trust in asset management and inheritance agency services
Response to growth markets through services for female investors
Improved sales efficiency and customer convenience via IT and digital tech
Global expansion through handling of Asian emerging market stocks
Expanded customer touchpoints from regionally rooted insurance shop operations
Enhanced customer response through maintaining diverse local branch network
High expertise in M&A support for SMEs
Improved management efficiency under holding company structure
Stable management base from long-term capital alliances

Threats

Pressure on margins from low interest rate environment in financial markets
Intensifying competition with online-only net securities firms
Business risk influenced by local economic conditions due to regional focus
Shrinkage of individual investor market due to declining domestic population
Increased burden from stricter financial regulations and compliance
Rising response costs from rapid technological evolution
Potential business impact from regional risks like natural disasters
Rise of emerging fintech and financial services
Decline in investment sentiment from sudden economic changes
Risk of declining profit margins from intensified M&A market competition
Impact on overseas services from global market uncertainties
Decreased service usage from customers' lag in digital adaptation

Innovations

2024: Strengthening Situation Analysis Operations through Subsidiary Integration

Overview: Absorbed and merged Tokai Tokyo Research Center Co., Ltd. and Tokai Tokyo Academy, renaming to Tokai Tokyo Intelligence Lab.
Impact: Achieves business efficiency and service quality improvement by consolidating research and analysis functions.

2024: Transfer of Pinnacle Co., Ltd.

Overview: Transferred M&A advisory company Pinnacle to Yamada Consulting Group to focus resources.
Impact: Optimizes business portfolio to concentrate management resources.

2023: In-kind Contribution of Tokai Tokyo Asset Management Shares to Equity-Method Affiliate

Overview: Made in-kind contribution of shares to Money Design to pursue synergies in asset management business.
Impact: Contributes to improved capital efficiency and strengthened alliances.

2021: Made Ace Securities and Maruhachi Securities Consolidated Subsidiaries

Overview: Integrated regionally rooted securities subsidiaries to expand and streamline sales base.
Impact: Strengthens regional deployment and creates group synergies.

2020: Launch of Women's Investment Information Site 'Maiden's Purse'

Overview: Established specialized information platform to actively support female investors.
Impact: Contributes to promoting investment participation among women.

2022: Expansion of Joint Venture Securities Business with Regional Financial Institutions

Overview: Established securities companies through joint ventures with multiple regional banks to meet local financial needs.
Impact: Enhances services in local markets and acquires new customers.

2023: Strengthening of IT and Digital Platforms

Overview: Significantly renewed securities sales support systems and online trading infrastructure.
Impact: Realizes improved customer convenience and sales efficiency.

2021: Expansion of Insurance Shop 'Insurance Terrace' Operations

Overview: Expanded walk-in stores offering diverse insurance products nationwide.
Impact: Contributes to expanding customer base and diversifying revenue.

2020: Strengthening of Local Custody Trading for Asian Stocks

Overview: Expanded stock services for China, Korea, and India markets to serve overseas investors.
Impact: Improves trading convenience for global customers.

2022: Enhancement of M&A Advisory Functions

Overview: Improved mid-sized enterprise M&A support capabilities through Pinnacle subsidiary integration.
Impact: Secures regionally rooted deals and realizes high-value-added services.

Sustainability

Promoting diversity management through women's active role advancement
Social contribution activities through collaboration with local communities
Ensuring trust through strengthened compliance
Environmentally considerate office operations
Company-wide work-style reform through diversity promotion
Strengthening investor protection through financial education support
Continuous contributions to regional economic revitalization
Promoting creation of sustainable financial services
Reducing paper resources through IT utilization
Thorough sound corporate governance