message from our president & ceo - smbc nikko · message from our president & ceo president...
TRANSCRIPT
Message from Our President & CEO
President & CEO
Tetsuya Kubo
Ever since becoming a member of Sumitomo Mitsui Financial Group in October 2009, our
company has made steady progress as the core securities company of the group, enhancing its
corporate structure with a focus on the ideals of “a full-line securities company,” “global,” and
“banking-securities collaboration.” In the retail business, we have expanded our product lineup
and strengthened our service system to respond to the diversifying needs of individual clients. In
the wholesale business, we invested our managerial resources in the development of business
structures, and as a result won big deals and global deals.
Our vision is to become a leading Japanese full-line securities company capable of offering high-
quality financial products and services globally. With this aim, we will expand our business
further under the Medium-term Management Plan spanning the three years beginning in April
2013, which we see as our growth stage.
Focusing on “speed & scale,” we will promote growth strategies by pursuing high-level securities
expertise and creating an innovative banking-securities collaboration model so that we may
establish a solid market presence and be highly evaluated by our valued clients.
We will continue to provide higher value services to our clients, based on a principle of
“customer-first,” and aim to achieve the highest degree of satisfaction and sense of security. As a
member of the Sumitomo Mitsui Financial Group, we will enhance collaboration with Sumitomo
Mitsui Banking Corporation so that we can deepen the trust that has been built up between us
and so many people in our company’s 95-year history.
We would appreciate your continued patronage and support.
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A Member of the Sumitomo Mitsui Financial GroupManagement Philosophy
History
Shareholding Ratio 100%
Shareholding Ratio 100%
In June 2009, the former Nikko Cordial Securities Inc. set up Nikko Cordial Securities De-merger Preparatory Company Ltd., and on October 1, 2009 succeeded to all of the operations (excluding selected assets and liabilities) of the former Nikko Cordial Securities Inc. and certain businesses, including the domestic debt and equity underwriting businesses, of Nikko Citigroup Limited by means of an absorption-type corporate demerger. On October 1, 2009, after succeeding to these businesses, Nikko Cordial Securities De-merger Preparatory Company Ltd. renamed itself as Nikko Cordial Securities Inc. to start as a new securities and investment banking firm, with retail and wholesale business arms.
As of October 1, 2009, Sumitomo Mitsui Banking Corporation acquired all the shares in the renamed Nikko Cordial Securities Inc., and through this operation, the renamed Nikko Cordial Securities Inc. became a member of the Sumitomo Mitsui Financial Group.
As of April 1, 2011, Nikko Cordial Securities Inc. renamed itself SMBC Nikko Securities Inc.
Management Philosophy
To provide higher value, based on a customer-first principle.
To seek to be a company that grows together with our customers,and inspires their supreme trust.
To fulfill a role as a sound financial intermediary in order to contribute to the development of both capital markets and our society.
To create a work environment in which each employee demonstrates individualityunder a sense of unity, while respecting diversity.
Our company has served clients for more than 90 years since it started business as Kawashimaya Shoten in July 1918. It made a fresh start in October 2009 as a member of Sumitomo Mitsui Financial Group. As one of the largest full-line securities company in Japan, we will provide high-quality financial products and services to our clients.
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1918 July Kawashimaya Shoten founded
1920 April Reorganized as Kawashimaya Shoten Co., Ltd.
June The former Nikko Securities Co., Ltd. established
1943 September The former Kawashimaya Securities and Kawashimaya Shoten Co., Ltd. merged with and name changed to Kawashimaya Securities
1944 April The Nikko Securities Co., Ltd. established
1948 November Registered as a securities business under the Securities Exchange Law
1949 April Became official member of Tokyo Stock Exchange, Osaka Securities Exchange, and Nagoya Stock Exchange
1951 June Completed registration as a securities management company under the Securities Investment Trust Law
1961 October Listed its shares on the second sections of the Tokyo Stock Exchange, Osaka Securities Exchange, and Nagoya Stock Exchange
1970 February Listed its shares on the first sections of the Tokyo Stock Exchange, Osaka Securities Exchange, and Nagoya Stock Exchange (delisted in January 2008 when the Company became a wholly-owned subsidiary of Citigroup)
1999 March Nikko Salomon Smith Barney Limited (later to become Nikko Citigroup Limited), an investment banking joint venture with Citigroup, started operations
2001 March Nikko Securities De-merger Preparatory Company established
October Nikko Securities De-merger Preparatory Company took over the entire securities business and other operations from The Nikko Securities Co., Ltd. changed its name to Nikko Cordial Securities Inc. The Nikko Securities Co., Ltd. was renamed Nikko Cordial Corporation as a holding company.
2007 May Became Citigroup’s subsidiary through the tender offer of Nikko Cordial Corporation (later becoming a wholly-owned subsidiary through a triangular share exchange)
September Registered as first-class financial instrument dealer, second-class financial instrument dealer, and investment advisor/agent under the newly enforced Financial Instruments & Exchange Law.
2008 January Registered as an investment manager under the Financial Instruments & Exchange Law
2009 June Nikko Cordial Securities De-merger Preparatory Company Ltd. established
October Nikko Cordial Securities De-merger Preparatory Company Ltd. took over all of the operations of the former Nikko Cordial Securities Inc. and certain businesses of Nikko Citigroup Limited and was renamed Nikko Cordial Securities Inc.
Became a member of Sumitomo Mitsui Financial Group upon the transfer of shares to Sumitomo Mitsui Banking Corporation
2011 April Nikko Cordial Securities Inc. changed its name to SMBC Nikko Securities Inc.
SMBC Nikko Securities provides clientswith comprehensive financial services and high value-added solutionsas a full-line securities company to meet the many and varied needs of our clients.
Over more than 90 years since its foundation in July 1918, SMBC Nikko Securities has developed solid relationships of trust with individual and corporate clients.
With the move to become a member of the Sumitomo Mitsui Financial Group, SMBC Nikko Securities can collaborate with Sumitomo Mitsui Banking Corporation, which has a huge business network and high credibility in addition to the expertise and solid client base developed over many years.
In both the retail and wholesale business areas, we will pursue business opportunities through banking-securities collaboration and offer advanced financial products and services based on our collective capabilities. Additionally, under strategic alliance agreements with Moelis* and Citigroup, we are in an advantageous position with their global business networks and resources.
* Moelis & Company is a global investment bank that provides financial advisory, capital raising and asset management services to a broad client base including corporations, institutional investors, and governments. With more than 580 professionals, Moelis & Company serves its clients through offices in New York, Beijing, Boston, Chicago, Dubai, Hong Kong, Houston, London, Los Angeles, and Sydney.
(As of April 30, 2013)
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SMBC Nikko is one of the leading full-line securities company in Japan covering all client segments with a broad range of financial products and services through its international network.
For individual clients, we deliver high-quality asset management consulting services to support best outcomes for their financial objectives in either of two service courses we offer. Under the “General Course,” clients can trade financial products while receiving advice, investment information and face-to-face consulting from assigned professionals through our nationwide network of 109 branches, while for the “Direct Course,” clients can trade equities on a discounted brokerage commission through our on-line trade or call center services.
For corporate clients, we have set up divisions according to business type in order to accumulate knowledge and best meet clients’ specific business needs. Those designated divisions strive to provide corporations, financial institutions, public-service corporations, local public authorities, government organizations or any type of wholesale clients with higher value delivered through teamwork across products, regions and divisions.
Outline of the Business
In the investment banking business, our professional staff offers corporate clients M&A and financing solutions to support their business strategies in the global age.
In the financial product business, we offer trading capabilities and financial products to accommodate the various needs of our clients, including institutional investors.
Our research service is a platform on which we offer leading information based on our original research. In August 2010, we established the Equity Research Division to research and analyze earnings and stock price trends of sectors and companies to provide investment information.
In overseas markets, SMBC Nikko Capital Markets Limited and SMBC Nikko Securities America, Inc., consolidated subsidiaries of SMBC in the United Kingdom and the United States respectively, jointly provide underwriting activities, arrangement of Samurai bonds, Japanese stockbroking and M&A advisory, etc. in collaboration with us. In addition, SMBC Nikko Securities (Hong Kong) Limited and SMBC Nikko Securities (Singapore) Pte. Ltd. provide Japanese stockbroking and M&A advisory services, and SMBC Nikko Investment Consulting (Shanghai) Limited offers M&A advisory related services. These overseas arms, together with other subsidiaries and affiliates, will continue to offer high quality financial services to clients on a global basis.
To meet the diversified needs of our clients, we are committed to providing a wider range of high value-added financial products and services and solutions to be a long-term strategic partner for clients.
Shanghai
Jakarta
Sydney
Hong Kong
Singapore
LuxembourgLondon
New York
SMBC Nikko Capital Markets
Nikko Securities Indonesia
SMBC Nikko Bank(Luxembourg)
SMBC NikkoInvestment Consulting
(Shanghai)
SMBC Nikko Securities America
SMBC Nikko Securities(Singapore)
SMBC Nikko Securities(Hong Kong)
SMBC Nikko Capital Markets,Sydney Office
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We have established a service network for
domest ic c l ients based on 109 branches
nationwide.
To capture investment opportunities in global
economic growth for domestic clients, we tout
“From Japan to the World” as a key philosophy and
offer various financial products, including equities,
bonds, investment trusts, annuity and insurance
products, and Nikko Fund Wrap/SMA., a custom-
made asset management service.
We aim to be the best partner for clients in
asset management with high-quality consulting
services meeting their investment purposes and
risk tolerance.
Our branches each have a privacy-conscious
space where we provide consulting services so
that clients who visit our branches can consult us
on asset management with utmost confidence.
We of fer clients three channels in which to
complete transactions. Clients can choose a
channel for their convenience.
● Branches
Our 109 branches nationwide provide various
services that meet the needs of clients, including
asset management consulting services, account
startups, and administrative procedures.
● Call Center
At the Nikko Contact Center, our designated staff,
who have received high evaluations from third-
party organizations, handle orders for equity
trading and respond to inquiries from clients. The
center facilitates clients who do not have access to
physical branches.
● On-line Trade
We have upgraded Nikko EZ Trade so that
clients can trade more comfortably at their own
convenience while having access to a variety
of financial products and abundant sources of
investment information.
In addition, we are improving our structure in which
assigned staff and professional teams, such as
the Equity Advice Center and the Investment Trust
Assist Center, jointly support clients in accordance
with their needs. This multiple support structure is
unique to SMBC Nikko.
Under the management philosophy of “to
provide higher value, based on a customer-first
principle,” we continue to strive to improve the
quality of client service. We have received high
evaluations from third-party organizations, as
detailed below.
We form par tnerships with individuals and
companies in other industries to offer clients a
wider range of distribution channels for financial
products by providing infrastructures such as
systems and financial product information and
business support. The individuals and companies
we partner with share our philosophy of remaining
close to clients and treating clients with trust and
sincerity while being equipped with expert financial
know-how.
・ WontwoThreeStars,thehighestrating,intheSupportPortal/CustomerContactCenterratingsurvey;wonThreeStarsintheCustomerContactCentersectorforsevenconsecutiveyears,thefirstsuchtriumphinhistory(2006-2012)
・ WontheFiveStarRecognizedCenterBenchmarkAward intheHDIFiveStarProgram,thefirstsuchtriumphinJapan(2012)
・ Wonthehighestawards intwosectorsoftheCorporateTelephoneMannersContestfortwoconsecutiveyears(2011-2012)
・ WonanawardintheNationalTelephoneMannersContestforsevenconsecutiveyears(2006-2012)
・ WontheCRMBestPracticeAwardforfiveconsecutiveyears(2008-2012)・ WontheBestContactCenterofTheYearawardforthreeconsecutiveyears(2010-2012)
・ WonthesilverprizefortwoconsecutiveyearsintheBestOutboundCampaignintheAsia-PacificsectoroftheContactCenterWorldAwards(2011-2012)
・ ObtainedcertificationforCOPC®CSPstandards(2008-2012)
Retail Sales Network
Financial Product Intermediary Business
Services to Our ClientsFROM JAPAN TO THE WORLD
SMBC Nikko Securities provides high-quality consulting services and solutions
through teamwork across products, regions and divisions to respond to our clients’ needs.
Evaluations from third-party organizations (sample)
Versatile Support Structure to Meet the Various Needs of Individual Clients
Clients On-line tradingCall center
Retail sales network
Support by sales divisions and branches and specialized sections
109 branches nationwide
Equity Advice CenterInvestment Trust Assist Center
Nikko EZ TradeNikko Contact Center
Individual Clients
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Owners of Companies,and Executives and Employeesof Listed Companies
Corporate Clients
As the main pillar of our private banking services,
we offer consulting services to clients including
high-net-worth individuals, such as owners of listed
companies. We make custom-made proposals to
each client and strive to realize these proposals
by using all available resources. We aim to be
an indispensable partner for clients by offering
various support measures such as solutions to the
preservation of client’s assets, fund management,
and the ef fective use of clients’ assets and
proposals of custom-made financial products.
After grasping their priorities and potential needs,
we provide total solutions to corporate clients such
as listed corporations and financial institutions
based on our abundance of experience, market
knowledge, and a variety of financial products and
services through teamwork with financial product
divisions and investment banking divisions.
To respond to clients’ inquiries and requests
on various matters including financing, fund
management, and employee benefits, we will offer
strategic backup services.
We a lso of fe r our c l ients a window to
cutting-edge corporate management and asset
management through guidance on market
information and various seminars.
We prov ide c l ient companies wi th a l l the
support they need until they go public, including
guidance and advice for initial public offering and
suggestions about capital policy, group strategy,
and information disclosure. We also offer solutions
including M&A to increase clients’ corporate value,
preserve their assets, and transfer their businesses
in a stable manner.
We offer public-service corporations, local public
authorities and government organizations or
any other public-sector clients, a wide range
of consulting services based on our abundant
experience. Via multi-faced approaches through
teamwork with professional teams, we provide the
following solutions: providing materials that support
clients’ investment; suggesting investment policies
in view of the needs of clients such as nationwide
public-service and non-taxable corporations.
We also offer services such as portfolio analysis
by using NBA (Nikko Bond Analysis), our asset
management and analysis system.
We provide executives and employees of listed
companies with proposals on wealth building in
accordance with clients’ life plans. Our proposals
include advice on financial products and services
meeting their risk tolerance in volatile markets.
We also propose management of severance
allowances and reallocation of assets af ter
retirement.
Private Banking
Corporations and Financial Institutions
Companies Planning IPO
Public-Service Corporationsand Non-Taxable Corporations
Workplace Sales
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We provide advice on M&As as an important
option in business strategy, including acquisitions,
mergers, capital and business alliances, and
business restructurings, to meet each client’s
needs. We suppor t all major steps in M& A:
proposal of an M&A, business valuation, due
diligence, preparation of contracts, and closing.
Based on the feasibility study identifying the key
concerns, such as related laws and systems,
industry trends, the business environment, and
the global situation, we form a specialist team that
includes staff who are fully conversant with the
industry and M&A advisory operations to offer the
most appropriate advice to clients.
To respond to financing needs identified to achieve
long-term business targets, we offer various direct
financing solutions, centering on Uridashi /public
offerings, underwriting of various bonds, and
securitization of owned assets. We provide all major
types of services related to financing: proposal of an
optimal-funding structure, marketing management
to investors, decision of optimal conditions, and
documentation.
In the investment banking business, we focus on corporate clients and offer them optimal solutions to meet their various needs and the market environments they operate in. We have developed a structure with experts with excellent track records in M&A and financing to provide services to comprehensively support corporations at home and abroad by leveraging our business knowledge accumulated through our long experience.
As a good business partner that strongly supports corporations, we continue to provide high value-added services by making full use of the network expanding around the Sumitomo Mitsui Financial Group.
M&A Advisory
Underwriting Equities and Bonds
Investment BankingWe offer corporate clients M&A and financing solutions
to support their business strategies in the global age.
As a Partner for Executing Business Strategy
14 15
Asset management products
Investment trusts Insurance Wrap account
Globally balancedGlobal equityDomestic equityGlobal bondDomestic bondAlternative funds
Variable annuity Fixed annuityForeign-currencyannuityVariable permanentinsuranceFixed permanentinsuranceBusiness insurance
Service of composingan appropriate Custom-made portfolio, etc.
Financial ProductsWe will respond to various clients’ needs
by strengthening our financial product engineering and our trading capabilities.
We provide comprehensive services and products
to clients through a global network. We develop
an extended range of services and trading system
to respond to clients’ various needs. In addition
to equities, we meet clients’ various needs by
providing an extensive lineup of high quality
derivative products. We continue to strengthen our
Sales & Trading capabilities, delivering information
based on the research conducted by the Equity
Research Division and improving our trading
capabilities with leading technology.
Our comprehensive strengths—a high capability
to structure products, offer attractive primary
products, and deliver timely research information—
enable us to provide products to an extensive sales
network. We develop various types of bond trading
businesses to meet clients’ diversified investment
needs. We also offer financial solutions to satisfy
a wide range of clients’ needs by engineering and
providing various derivative products, derivative-
containing products such as structured notes, and
securitized products that require the latest financial
engineering techniques and risk management
capabilities.
We develop and offer asset management products
such as investment trusts, SMA, and insurance,
and offer services as the management and the
provider of Wrap accounts. We allocate specialists
with expertise and aim to develop one-of-a-kind
innovative products based on the current market
trends and clients’ needs. Under our best product
policy, we offer clients new options for international
diversified investment by developing a variety of
products with fund management companies and
insurance companies at home and abroad.
Equities
Bonds
Asset Management Products
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ResearchWe provide high value-added information
to support clients’ investment strategies.
We analyze the rapidly-changing global economy
and market trends from various perspectives and
promptly and clearly deliver the latest domestic
and international information.
In addition to analysis of the domestic and
international macro economy and f inancial
markets, for information on fixed income products,
we provide clients with a variety of information
on bond markets and credit reports on domestic
corporate bond issuers as well as Samurai bond
issuers. To provide clients with high-quality
investment opportunities, we also offer the NBA
(Nikko Bond Analysis) service, which enables
portfolio management, analysis, and proposal.
We have received a high evaluation from many
clients. Regarding information on equities,
we have organized equity research teams in
which competent top-ranking analysts provide
institutional investors at home and abroad with
expert information on earnings and stock price
trends of sectors and companies in addition
to overall equity market information analysis.
We continue to expand the scope of our equity
research in order to continuously upgrade our
information-delivering capabilities.
We have implemented various joint operational initiatives with SMBC since we started our business as a member of the Sumitomo Mitsui Financial Group on October 1, 2009.
Banking-securities Collaborationwith Sumitomo Mitsui Banking Corporation (SMBC)
SMBC Nikko Securities is a dealer in financial
products and offers SMBC a rich variety of financial
products and infrastructure facilities for securities
trading. Through SMBC, we provide corporate and
individual clients with products and services suited
to their asset management needs.
F i n a n c i a l P ro d u c t I n t e r m e d i a r y Service
SMBC Nikko Securities and SMBC refer their clients
to each other according to client needs. As a group,
both companies provide products and services
best suited to their clients. SMBC Nikko Securities
provides various financial products and services to
clients referred to it by SMBC, while SMBC provides
various banking products and services to clients
referred to it by SMBC Nikko Securities.
Client Referral
Automated teller machines (ATM) have been installed
at our Main Branch, as well as at the Ikebukuro,
Yokohama-ekimae, Nagoya, Osaka and Kobe
branches, etc., to support SMBC’s cash cards and
Nikko cards.
Installing SMBC’s ATMs atBranches of SMBC Nikko Securities
“Bank & Trade” is an Internet-based service
connecting a client’s cash management account at
SMBC Nikko Securities with his/her ordinary deposit
account at SMBC. This service is useful for asset
formation. One of its features is account aggregation
which gives clients access to a single screen
showing their account balances at both companies
on a real-time basis.
Bank & Trade
Since October 2010, certain SMBC Nikko Securities’
branches have served as SMBC’s agent. Their
job includes opening accounts for Japanese yen
ordinary deposit and Japanese yen time deposit at
SMBC and responding to various other client needs.
Banking Agency Business
Since July 2010, we have collaborated with SMBC
and Barclays Bank plc. With proprietary knowledge
and func t ions he ld by a wor ld-c lass asset
management team, Barclays provides an “Investment
Solution Service” to clients referred by SMBC
through SMBC Nikko Securities.
Joint Wealth Management
We are engaged in business collaboration with
SMBC Nikko Capital Markets Limited and SMBC
Nikko Securities America, Inc., SMBC’s subsidiaries
in the United Kingdom and the United States
respectively, to jointly provide underwrit ing,
arrangement of Samurai bonds, M&A advisory and
Japanese stockbroking etc. These overseas affiliates
provide expanded and high-quality services to
clients on a global basis.
Expansion of Securities Businessin London and New York
18 19
Handling environmentally conscious products
●Green Week
Green Committee
Executive office(CSR Section of Communications Division)
President & CEO
Divisions, branches, and group companies
Sharing information andcollaboration
SMBC Nikko Securities promotes CSR initiatives using its position as a financial services company primarily in the following four initiatives: Environmental Conservation Initiatives, Financial and Economic Education, Regional Contribution, and Support for Disaster Victims.
CSR Initiatives
In January 2010, to promote CSR initiatives, we
set up the Green Committee, a cross-sectional
committee, chaired by the President & CEO to set the
annual target for CSR initiatives, and improve internal
communication.
Through financial products, we actively of fer opportunities to invest in companies that take a pro-environmental business approach. In 1999, we started handling the Nikko Eco Fund, the first SRI (Social Responsibility Investment) fund in Japan to introduce a stance on environmental conservation. Since then, we have increased our lineup of environment-related investment trusts.In February 2010, we commenced handling the SMBC Nikko World Bank Bond Fund. This fund is the world’s first fund developed in cooperation with the World Bank to invest in World Bank green bonds. A portion of the profits from this fund are donated to UNICEF and the Japanese Red Cross.
*Green bonds in which this fund invests are a type of bond issued by the World Bank.
In addition to direct activities such as the reduction in
energy and paper consumption and waste discharge,
we are proactively promoting other initiatives taking
advantage of our position as a securities company,
including offering opportunities to invest in companies
taking pro-environmental approaches to business
so as to support companies in implementing their
environmental initiatives.
Recogniz ing the d isseminat ion of accura te
knowledge on securities and finance as the mission
of a financial services company, we promote financial
and economic education.
Employees at our headquar ters and branches
participate in cleanup and volunteer activities in
the hope of helping solve problems faced by our
regional communities and thereby contributing to
regional development.
We have donated relief supplies offered by in-
house volunteers and a por tion of the profits
from funds related to disaster-stricken regions
to support victims of natural disasters around
the world. We open bank accounts to gather
donations f rom our employees, encouraging
their participation. The company and employees
jointly participate in these activities.
To promote environmental conservation initiatives
effectively and efficiently, we set up environmental
management systems and acquired ISO14001*
cer tif ication in April 2001, becoming the f irst
Japanese company in the securities industry. We
have acquired ISO14001 certification for our business
operations in the Tokyo Dia Building to ensure our
performance of the initiatives.
In summer, we hold our Nikko Family Exciting
Experience Day, a special hands-on learning
program for elementary school students and their
families at our branches. Participants can visit
our offices and learn about the economy, the flow
of money, stocks, and the social role of financial
institutions.
We offer company visits and hold seminars so that
students and grown-ups can deepen their knowledge
of finance, economics and securities companies by
organizing a tour of the Tokyo Stock Exchange as
well as our headquarters and branches, and holding
seminars on the system of money and stocks and the
role of financial institutions.
We cooperate with our group company Nikko
Financial Intelligence, Inc., to provide universities
with courses on financial economics and securities
investment and send instructors to help students
acquire knowledge of securities as part of the liberal
arts.
*ISO 14001 is an international standard for a system which helps corporations ascertain the environmental impact of their business operations and assist them in making continual improvements in their environmental management through the Plan-Do-Check-Act methodology.
●Green Committee ● Environmental Conservation Initiatives● Financial and Economic Education ● Regional Contribution
● Support for Disaster Victims
ISO14001Environmental Management Systems
Nikko Family Exciting Experience Day
Company Visits and Seminars
S o c i a l c o n t r i b u t i o n a c t i v i t i e s b y n e w employees
Presenting Courses at Universities
We held “Green Week,” a period to enhance
environmental conservation and social contribution
a c t i v i t i e s , w i t h t h e a im o f d e e p e n in g th e
understanding of our personnel on environmental
conservation through actual par t icipation in
social contribution activities, while activating
communication between regional societies and our
personnel participating in such activities. We plan to
continue to implement the activities every year.The purpose is to foster a sense of unity among
new employees by giving them a chance to learn
the meaning and importance of social contribution
activities.
● Reconstruction Support for the Great East Japan Earthquake
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(As of May 1, 2013)
Corporate Governance
In SMBC Nikko Secur i t ies, four statutor y
auditors (including three outside statutory auditors)
attend meetings of the Board of Directors, which
consists of 11 directors and decides the company’s
management policy, management plans, and other
important matters. In the Board of Directors’ meeting,
board members regularly receive reports from the
advisory council, which deliberates and examines
corporate governance matters including compliance,
risk management, and information systems, and
ensures the company’s operations are performed
appropriately. The statutory auditors also attend
the management committee, a decision-making
Fully recognizing our significant social responsibilities
as a player in the financial product market, we have
positioned compliance as one of the most important
management priorities, and constantly upgrade and
implement our compliance structure to be better
understood and trusted by other market participants
and by society as a whole.
Securities companies are exposed to various and
complicated risks, such as market risk, credit risk,
liquidity risk, operational risk including processing
risk and system risk, legal risk, and reputation risk.
We continuously enhance and implement our risk
management structure so that we can identify,
appropriately manage and control these risks to
maintain the company’s soundness and enhance
profitability.
body for the overall business, and other meetings
regarding the execution of operations to monitor
how directors perform their duties. Furthermore,
under the corporate governance structure, the
statutory auditors receive detailed reports, on
their independent authority, from the organizations
responsible for actual operations.
We adopt an executive officer system with the
aim of effective execution of the management plan
and other important operations that are approved at
the Board of Directors’ meeting while clarifying where
responsibility lies. Currently, 41 executive officers are
appointed by the Board of Directors.
Corporate Governance
Compliance Risk Management
(As of April 30, 2013)
Corporate Overview
Company Name SMBC Nikko Securities Inc.
Head Office 3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100-8325, Japan
Phone Number +81-3-5644-3111 (Head office)Representative President & CEO Tetsuya Kubo
Date of Incorporation June 15, 2009
Commencement of Operations October 1, 2009 * *Took over all of the operations (excluding selected assets and liabilities) of the former
Nikko Cordial Securities Inc. and certain businesses of Nikko Citigroup Limited.
Financial Instrument Dealer Director of Kanto Local Finance BureauRegistration Number (Financial instruments firms) No.2251
URL www.smbcnikko.co.jp/en
Membership in Associations Japan Securities Dealers Association
Japan Investment Advisers Association
The Financial Futures Association of Japan
Type II Financial Instruments Firms Association
This material contains certain forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may materially differ from those contained in the forward-looking statements as a result of various factors. Important factors that might cause such a material difference include, but are not limited to, those economic conditions referred to in this material as assumptions.
In addition, the following items are among the factors that could cause actual results to differ materially from the forward-looking statements in this material: business conditions in the securities industry, the regulatory environment, new legislation, competition with other financial services companies, changing technology and evolving securities industry standards and similar matters.
The information contained in this material is based on data available as of May 1, 2013 and this material is intended to provide information for a general description of SMBC Nikko Securities Inc. Any information and opinions contained in this material reflect our judgment as of the date of presentation of the material (May 1, 2013) and are subject to change without notice. No guarantees, representations, or warranties are made as to the accuracy or completeness of such information. Reference information contained and shown in this material for the period before September 2009 is based on the former Nikko Cordial Securities Inc.
StatutoryAuditors
Head Office divisions andFront-Line Offices Nikko’s subsidiaries, etc.
Compliance Unit
ComplianceCommittee
Board of Directors
ManagementCommittee
Head of Compliance
Internal Audit Unit
Instruction, monitoring, and legal supports
AuditReport and consultation
ReportReport
Report Approval andreport
Request forresolution, report
Requestfor advice
Audit
Approval andreport
Audit StatutoryAuditors
Head Office divisions andFront-Line Offices Nikko’s subsidiaries, etc.
Risk Management Divisions
Risk ManagementCommittee
Board of Directors
ManagementCommittee
Head ofRisk Management
Internal Audit Unit
Application and report
AuditApproval andmonitoring
ReportReport
Report Approval andreport
Request forresolution, report
Requestfor advice
Audit
Request forresolution,report
Audit
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