Nissho Iwai Sets Up "Nissho Iwai FTX Holdings Corporation" Meant to Systematize its Financial Business Operations
May 31, 2001
TOKYO (May 31, 2001)-Nissho Iwai Corporation will establish a company integrating its financial business operations under the name of "Nissho Iwai FTX Holdings Corporation "(FTX)" on June 8. Making the most of the functions of a sogoshosha, FTX pursues a fee business as its core business by making effective use of synergies which may arise from the strategic integration of the financial business operations of Nissho Iwai group companies. FTX also helps maximize the profitability and corporate value of each group company, with a view to taking in outside capital in the future.
The group companies FTX is going to integrate number 14 (five subsidiaries and nine secondary subsidiaries) at home and abroad, comprising five as the financial business (securities and investment consultancy firms) group, seven as the insurance business (insurance agency & brokerage)group, and two as the commodity business (commodity futures & dealing) group.
1. The financial business group aims to increase its revenues as fees for its services, which include handling the shares in newly listed companies, setting up & selling funds, facilitating asset liquidation, and acting as intermediary for foreign exchange hedging.
2. The insurance business group will expand its operating income base by cultivating new clients in the general market to add to the existing clients and developing and conducting insurance-related new businesses.
3. The commodity business group will expand its services connecting the clients and the markets in the growing futures markets.
The five subsidiaries to come under FTX include two subsidiaries to be newly created upon the establishing of FTX: NISSHO IWAI FINANCIAL LINK CORP. , to which the business of the Financial Business and Market Dept. will be transferred, and NISSHO IWAI COMMODITIES CORPORATION, to which the business of the Precious Metal Division will be transferred. The FTX group expects to have 2.6 billion yen, one billion yen, and 500 million yen as revenues, operating income, and net profit respectively for the first year (2001). Three years later in 2003, the figures are expected to be three billion yen, two billion yen and one billion yen respectively.
Nissho Iwai has been pursuing specialization in each area of Financial Technology, Information Technology and Logistics Technology to create new business models which draw on the functions of a sogoshosha.
In the area of Information Technology, Nissho Iwai has already Setup ITX Corporation, which is to be followed by the newly created subsidiary, FTX, in the area of Financial Technology. Further efforts will be made to create such new business opportunities as no other companies but a sogoshosha can come up with, by making the most of each specialized area of the three technologies.
An outline of the FTX group is given below
: Integrating Company
Nissho Iwai FTX Holdings Corporation
2-3-1 Daiba, Minato-ku, Tokyo
CEO & President: KONDO Masanobu (Vice-President of Nissho Iwai)
Capital: 5.4 billion yen
Equity Holders: 100% by Nissho Iwai Corporation
Financial Companies as Subsidiaries
NISSHO IWAI FINANCIAL LINK CORP. (newly created)
Gets the business of the Financial Business and Market Dept. transferred from Nissho Iwai as of April 1, 2001. Its main businesses include foreign exchange booking for Nissho Iwai, management of interest portfolios, and control of the existing financial business operations. Its foreign exchange booking and interest swapping and other financial derivative transactions with banking institutions will all be conducted in the name of Nissho Iwai from contracting through settlement. Capitalized at 2.8 billion yen with 20 employees.
NISSHO IWAI SECURITIES CO., LTD.
Established on May 20, 1998 as Japan's first securities company to enter this business from other business areas. With "alternative investments," "securitization of assets," and "facilitating IPO" as its core services, pursues a "niche market of investment banking." Capitalized at one billion yen with 29 employees.
NISSHO IWAI ASSET MANAGEMENT LIMITED.
Established on November 18,1997. Its main businesses are "asset management services," "market researches including commissioned ones," consultancy for asset management." Capitalized at 300 million yen with six employees.
NISSHO IWAI INSURANCE AGENCY CORP.
Established on January 1, 1949. Became an independent business in October 2000 with the insurance business of Nissho Iwai wholly transferred to it, starting to pursue the insurance business as the central firm among the insurance group at home and abroad. With its insurance business prowess fully employed, aims to improve and expand its consulting services and to create insurance-related new businesses including the establishment of a housing-related insurance firm. Its main business is acting as an agency for property insurance and life insurance for Nissho Iwai group companies and other companies as the group's business accounts. Capitalized at 490 million yen with 58 employees.
NISSHO IWAI COMMODITIES CORPORATION
Gets the business of the Precious Metal Division transferred to it in steps as from May 1, 2001, engaged in commodity trading, financial dealing, and selling precious metals as its main businesses. Capitalized at 1.3 billion yen with 31 employees.