2018 CEO Message

Michio Matsui President&CEO Michio Matsui

To our shareholders and customers:

In last year’s greetings, I had stated that “Blockchain will change the world”. However, it seems like I have misread the speed of such change.

Cryptocurrencies such as Bitcoins is one thing which has been generated from blockchain. ICO (Initial Coin Offering), a method of financing using cryptocurrencies, has proliferated to start-up firms around the world, and is also being utilized in Japan. ICO is a new form of financing which is different from traditional financing by equities and bonds, and is beginning to have an effect to change the capital markets. As mentioned in the beginning, the speed at which blockchain has invited changes has been much faster than expected, since trading of cryptocurrencies has not only utilized in remittances and settlements, but it has also enabled financings.

The world is transforming form IOT (Internet of Things) to IOA (Internet of Abilities). Beyond that is IOE (Internet of Everything), but I believe that this is also a transition to the world of blockchain in a wider sense.

However, no matter how convenient blockchain may be, if its credibility is not ensured, it will not become widespread. In order for changes of capital markets to be considered a business opportunity and in order to develop into a new capital markets, it is most important to search for ways in which blockchain may adapt to the world.

On May 10 of this year, Matsui Securities will celebrate its 100th anniversary. As mentioned in the greetings statement last year, going into the future, the definition of labor will change, and the relationship between the individual and organizations will also change significantly. The company is only a vehicle, and if it does not change in accordance with changes in the times, it will be swallowed in the waves of the times. I believe that the smaller an organization, and the simpler the business, it will be able to cut-off past constraints and flexibly adapt to the changes of the times.

Developing business model which meets the times is the most important job of the president of a company; however, only financial figures will objectively show whether such business model was correct. Therefore, last year I made an important decision. I have set the target of ROE, which is the most important index for the company management, to “above 8%”. In the mid- to long-term, we will aim to attain a high ROE level which exceeds the cost of equity capital (currently 8% at the company), and be a company which continues to create value. Along with this, I have also set the dividend policy target at “DOE of 8% and above, and dividend payout ratio between 60% and 100% inclusive”.

A quarter of a century has elapsed since I became the president. I have always said that “The largest cost for a company is the gap with the times. Such gap is generated by the president. Therefore, the largest risk is inside of the president’s mind.” I hope to continue to act as president until I am said to be “outdated”.

Your continued support is greatly appreciated.

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