2014 CEO Message

To our shareholders and customers:

The Abe administration launched full scale operation last year, and the stock price rose significantly by the actual achievements and expectations for “Abenomics” which focus on the monetary easing and fiscal stimulus. The Nikkei Stock Average recorded a high for the year on the final session of last year. I would expect that the stock price continuously rises this year. This is the year that the true value of “Abenomics” will be put to the test.

On the other hand, the political situation in the world is in the deep confusion. There have been various risks and issues all over the world. Market is the mirror that reflects the universe, but it is difficult to predict the market in the future. Almost twenty years have passed since the economic bubble burst.

Last year Matsui Securities achieved a record equity trading value of more than 35 trillion yen. I believe that the Company will update the new record this year. It will be affected to some extent by the market conditions; however I have prepared some initiatives to differentiate from competitors, which would not be influenced by the market conditions. The online brokerage business has already been commoditized and the industry has fallen into the fierce price competition among major players. Our short-term objective is to put an end to this competition and create new field of competition. This is the creative destruction, in other word, innovation. Destruction should be carried out first, and what is more important is the creation to fill the blank space.

Post bubble period is often described as “lost decades”, however I doubt it. It seems to me that renewed sense of value and purpose among the younger generation is coming out and growing up in the meantime. There is no reason that the new-wave of that individual attitude does not affect the capital markets. I believe that Japan and Japanese capital markets will come back through a big change in the future. In order to play a part of it, I am going to put all my energy in innovation in the capital markets. Your continued support is greatly appreciated.

Michio Matsui
President & CEO
Matsui Securities Co.,Ltd.