Non-consolidated Financial Results
for the Three Months Ended June 30, 2021
(Under Japanese GAAP)
July 29, 2021
Mito Securities Co., Ltd.
Listing:
Tokyo Stock Exchange
Company name:
8622
URL:
https://www.mito.co.jp/
Securities code:
Katsunori Kobayashi, President and Representative Director
Representative:
Masanobu Tamari, Manager, Finance Department
Contact:
Phone:+81-3-6739-5403
Scheduled filing date of Quarterly Securities Report (Shihanki Hokokusho):August 13, 2021
Scheduled date of dividend payment:–
Preparation of supplementary briefing material on quarterly financial results:
None
Investors meeting presentation for quarterly financial results:
None(Note) Amounts less than one million yen have been omitted.
1. Non-consolidated financial results for the three months ended June 30, 2021
(from April 1, 2021 to June 30, 2021)(1) Operating results(Percentages indicate year-on-year changes.)
Operatingrevenue
Millions ofThree months ended yen

June 30, 2021
June 30, 2020

3,514
3,474

Net operating
Operating profit
Ordinary profit
Profitrevenue% Millions of% Millions of% Millions of% Millions of
yen
yen
yen
yen

1.2
29.2

3,500
3,459

Basic earnings
per share

Three months ended
June 30, 2021
June 30, 2020

1.2
29.5

376
404

(7.0)
–

581
567

2.5
–

447
391

%

14.3
–

Diluted earnings
per share
Yen

Yen

6.97
6.10

–
–

Total assets
Millions of yen

Net assets
Millions of yen

72,733
71,912

38,94839,709(2) Non-consolidated financial position
As ofJune 30, 2021
March 31, 2021

Reference: Capital (Shareholders’ equity + Valuation and translation adjustments):
As of June 30, 2021:¥38,948 million
As of March 31, 2021:

Capital ratio%

Capital adequacy ratio
%

53.5
55.2

679.8
697.1

¥39,709 million

2. DividendsFirstquarter-end
Fiscal year
Ended March 31, 2021
Ending March 31, 2022
Ending March 31, 2022 (forecast)

Annual dividends per share
SecondThird
Fiscalquarter-end quarter-end
year-end

Total

Yen

Yen

Yen

Yen

Yen

–
–

6.00

–

10.00

16.00

–

–

–

–

(Note 1) Breakdown of fiscal year-end dividends for the fiscal year ended March 31, 2021
Ordinary dividend: ¥8.00 per share
Commemorative dividend: ¥2.00 per share (to commemorate the 100th anniversary of the Company’s founding)(Note 2) We have yet to determine the year-end dividend forecast for the fiscal year ending March 31, 2022. You can find the reason andother information in “Explanation on appropriate use of earnings forecast and other special notes” on the second page of thisSummary Information.

3. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 toMarch 31, 2022)
Our earnings could fluctuate greatly depending on the stock market trend and other factors. We therefore do notdisclose earnings forecast on concern that it could rather adversely affect the investment decision of ourshareholders and investors.
We will promptly disclose the preliminary results figures when the operating results will be substantially
finalized.

[Notes](1) Application of accounting methods used specifically for preparing the quarterly non-consolidated financial
statements:
None(2) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial
statements(i) Changes in accounting policies due to application of new or revised accounting standards: Yes(ii) Changes in accounting policies due to reasons other than above (i):None(iii) Changes in accounting estimates:None(iv) Restatements of prior period financial statements:
None
Note: For more details, please see page 8 “Changes in accounting policies” of the Attached Materials.
(3) Number of shares issued (common stock)(i) Number of shares issued at the end of the period (including treasury shares)
As of June 30, 2021:
70,689,033 shares
As of March 31, 2021:
70,689,033 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2021:
6,839,563 shares
As of March 31, 2021:
6,390,853 shares(iii) Average number of shares of common stock during the period
Three months ended June 30, 2021:
64,222,650 shares
Three months ended June 30, 2020:
64,283,949 shares
Notes: The number of treasury shares at the end of the period includes the shares of the Company’s stock
held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for Board Benefit Trust (BBT)and Employee Stock Ownership Plan (J-ESOP). In addition, the number of treasury shares, which
was to be deducted from the calculation of the average number of shares of common stock during theperiod, includes the shares of the Company’s stock held by Custody Bank of Japan, Ltd. (Trust
Account E) as trust assets for BBT and J-ESOP.
* This financial results report is not subject to quarterly review procedures to be performed by certified public
accountants or an audit firm.
* Explanation on appropriate use of earnings forecast and other special notes(Reason for not disclosing dividend forecast, etc.)
We have adopted a basic policy of approximately maintaining a 50 percent dividend payout ratio by taking into
account payout consistency, net asset position, and other managerial judgments based on our corporate
philosophy of striving to act in the best interest of our shareholders.
As described in “3. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2022 (from
April 1, 2021 to March 31, 2022),” we have yet to determine the year-end dividend forecast for the fiscal year
ending March 31, 2022 due to difficulty in forecasting earnings. We will promptly disclose the forecast amount at
the timing when the second quarter-end and the fiscal year-end approach (during September 2021 and March
2022).

2

Contents of Attached Materials
1. Overview of operating results, etc. ···················································································

2(1) Quarterly overview of operating results ·········································································

2(2) Quarterly overview of financial position ········································································

3(3) Outlook ···············································································································

4(4) Risk information on COVID-19 infection ·······································································

4

2. Quarterly non-consolidated financial statements and significant notes··········································

5(1) Quarterly non-consolidated balance sheets ······································································

7(2) Quarterly non-consolidated statements of income ·····························································

7

For the three months ended June 30, 2020 and 2021 ·····················································

7(3) Notes to quarterly non-consolidated financial statements ·····················································

8

Going concern assumption ························································································

8

Significant changes in shareholders’ equity ·····································································

8

Changes in accounting policies ···················································································

8

3. Supplemental information ······························································································

9(1) Commission received ·······························································································

9(2) Net trading income··································································································

9(3) Stock trading volume (excluding futures trading) ······························································ 10(4) Dealing volume of underwriting, offering and secondary distribution ······································ 10(5) Capital adequacy ratio ······························································································ 10(6) Quarterly trends of operating results ············································································· 11-1-1. Overview of operating results, etc.
(1) Overview of operating results
During the first three months ended June 30, 2021 (hereinafter the “period under review”), Japan’s economy
showed signs of rebounding. On April 23 the government announced a third State of Emergency for four
prefectures including Tokyo and Osaka, and this was eventually expanded to cover a total of ten prefectures. In
March, however, the composite index (CI) of leading economic indicators topped 100 for the first time sinceJune 2018, while consumption spending by working households hovered above the levels seen the previous year
in both nominal and real terms from March onwards, so certain economic indicators pointed to a recovery trend.
Meanwhile, economic activity in other major nations began to normalize as they made progress with theirvaccine rollouts, and expectations of recovery started to build. With more and more people vaccinated, the US
saw measures to prevent infection relaxed or eliminated entirely, and economic activity moved toward normal as
metrics such as the consumer confidence index and leading economic indicators climbed. Furthermore, themeeting of the Federal Open Market Committee (FOMC) held in mid-June witnessed, for the first time,
discussions concerning the policy of reducing monetary easing, which indicates that change is afoot formonetary policy, which has exclusively comprised loosening for some time.
During the period under review, the domestic stock markets stagnated as the effect of the re-declaration of aState of Emergency in major cities in Japan following a spike in the number of COVID-19 cases wascompounded by investors offloading stocks in late April after companies announced their financial results for the
fiscal year to March 31. Investors were also adjusting their portfolios, wary of the upward pressure on U.S. longterm bond yields. Ultimately, the Nikkei Average ended the first quarter at 28,791.53 yen, down 1.3% from theend of March 2021.
Under these circumstances, operating revenue for the period under review increased to ¥3,514 million (up 1.2%
year-on-year), while net operating revenue, which is operating revenue less ¥14 million in financial expenses(down 6.1% year-on-year), also rose to ¥3,500 million (up 1.2% year-on-year). Selling, general andadministrative expenses were ¥3,124 million (up 2.3% year-on-year). As a result, we reported operating profit of¥376 million (down 7.0% year-on-year), ordinary profit of ¥581 million (up 2.5% year-on-year), and profit of¥447 million (up 14.3% year-on-year). Note that due to the application of “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition AccountingStandard”), etc., operating revenue, net operating revenue, and selling, general and administrative expenses eachdecreased by ¥24 million. There was no impact on operating profit, ordinary profit, and profit.
Overview of the operating results are as shown below.
(i) Commission received
During the period under review, total “Commission received” was ¥3,177 million (up 3.3% year-on-year).
Note that due to the application of the Revenue Recognition Accounting Standard, etc., “Commission
received” decreased by ¥24 million.
(a) Brokerage commission“Brokerage commission” was ¥1,488 million (down 17.5% year-on-year). This was mainly due to adecrease to ¥233.7 billion (down 12.6% year-on-year) in the volume of stock brokered, resulting inbrokerage commission on stocks of ¥1,475 million (down 15.7% year-on-year). Meanwhile, brokeragecommission of beneficiary certificates was ¥12 million (down 76.1% year-on-year). Note that due tothe application of the Revenue Recognition Accounting Standard, etc., “Brokerage commission”
decreased by ¥1 million.
(b) Commission for underwriting, secondary distribution and solicitation for selling and others for
professional investors“Commission for underwriting, secondary distribution and solicitation for selling and others for
professional investors” was ¥9 million (up 2,919.2% year-on-year).
(c) Fees for offering, secondary distribution and solicitation for selling and others for professional
investors; Other fees received“Fees for offering, secondary distribution and solicitation for selling and others for professional
investors,” which mainly consist of investment trust sales commissions, were ¥778 million (up 24.9%
year-on-year). This was due to strong sales of investment trusts that invest in stocks of AI-relatedcompanies across the world, sustainable growth companies in the US, and long-term/high-quality-2-

growth companies. In addition, “Other fees received” was ¥901 million (up 38.8% year-on-year)
mainly due to increases in agency commission for investment trusts and commission for mutual fundwraps. Note that due to the application of the Revenue Recognition Accounting Standard, etc., “Feesfor offering, secondary distribution and solicitation for selling and others for professional investors”
decreased by ¥6 million and “Other fees received” decreased by ¥16 million.
(ii) Net trading income
During the period under review, “Net trading income” was ¥279 million (down 20.1% year-on-year)
consisting of net trading income for stocks of ¥189 million (down 30.8% year-on-year) due to a decrease in
trading volume of US stocks and that for bonds and foreign exchanges of ¥89 million (up 18.2% year-onyear).
(iii) Financial revenue and expenses
During the period under review, “Financial revenue” was ¥52 million (up 33.2% year-on-year) due to anincrease in income from margin transactions, and “Financial expenses” was ¥14 million (down 6.1% yearon-year) due to an increase in cost of margin transactions, resulting in a net profit of ¥38 million (up 57.6%
year-on-year).
(iv) Selling, general and administrative expenses
During the period under review, “Selling, general and administrative expenses” were ¥3,124 million (up2.3% year-on-year). This was mainly attributable to an increase in “Personnel expenses” including
provisions for share awards for employees, which was partially offset by a decrease in “Office expenses.”
Note that due to the application of the Revenue Recognition Accounting Standard, etc., “Selling, generaland administrative expenses” decreased by ¥24 million.
(v) Extraordinary income and losses“Extraordinary losses” for the period under review totaled ¥5 million (the same as the ¥5 million in the firstquarter of the previous fiscal year), and consisted solely of “Impairment loss.”(2) Quarterly overview of financial position(i) Current assets
At the end of the period under review, “Current assets” amounted to ¥56,533 million, an increase of ¥1,289
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥1,529 million
in “Cash and deposits,” ¥512 million in “Margin transaction assets,” ¥237 million in “Cash paid foroffering,” and ¥217 million in “Trading products,” which were partially offset by a decrease of ¥1,400
million in “Cash segregated as deposits.”(ii) Non-current assets
At the end of the period under review, “Non-current assets” amounted to ¥16,199 million, a decrease of¥469 million from the end of the previous fiscal year. This was mainly attributable to a decrease of ¥413
million in “Investment securities.”(iii) Current liabilities
At the end of the period under review, “Current liabilities” amounted to ¥28,527 million, an increase of¥1,801 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥3,144
million in “Deposits received,” ¥619 million in “Borrowings secured by securities,” and ¥223 million in“Provision for share awards for employees,” which were partially offset by decreases of ¥886 million in“Income taxes payable” and ¥384 million in “Provision for bonuses.”(iv) Non-current liabilities and reserves under special laws
At the end of the period under review, “Non-current liabilities” and “Reserves under special laws”
collectively amounted to ¥5,257 million, a decrease of ¥220 million from the end of the previous fiscal year.
This was mainly attributable to a decrease of ¥166 million in “Provision for share awards for employees”
due to the reclassification to current liabilities and a decrease of ¥41 million in “Provision for retirement
benefits.”(v) Net assets
At the end of the period under review, “Net assets” amounted to ¥38,948 million, a decrease of ¥760 million
from the end of the previous fiscal year. This was mainly attributable to decreases of ¥651 million due to the-3-payment of “Dividends of surplus,” ¥419 million in “Valuation difference on available-for-sale securities,”and ¥138 million in “Purchase of treasury shares,” which were partially offset by the recording of “Profit”
of ¥447 million.
(3) Outlook
We are engaged in the financial instruments business, and thus, its earnings could fluctuate greatly depending on
the stock market performance and other factors. We therefore do not disclose earnings forecasts on concern thatthey could rather adversely affect the investment decision of our shareholders and investors.
Instead, every quarter, we will disclose preliminary forecast figures as soon as the operating results are finalized.
The disclosure of such preliminary figures is scheduled at the end of each quarter or the middle of the month
immediately following the end of each fiscal year.
(4) Risk information on COVID-19 infection
If large-scale COVID-19 outbreaks were to occur at numerous branch offices or the head office, severely
restricting sales operations and head office operations, it could have an impact on operating results.
However, we believe that the possibility of this risk materializing is low. Going forward, widespread vaccination
will help to prevent the spread of infection, branch offices will be able to conduct sales work from home using cell
phones and tablets. In addition, at the head office, we have taken measures to prevent the suspension of criticaloperations by assigning personnel who perform the same work to different floors.

-4-2. Quarterly non-consolidated financial statements and significant notes(1) Quarterly non-consolidated balance sheets
Previous fiscal year
(As of March 31, 2021)
AssetsCurrent assets:
Cash and deposits
Cash segregated as deposits
Trading products:
Trading securities and other
Derivatives
Trade date accrual
Margin transaction assets:
Loans on margin transactions
Cash collateral pledged for securities borrowing on
margin transactions
Cash paid for offering
Short-term guarantee deposits
Income taxes receivable
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings
Other, net
Intangible assets
Investments and other assets:
Investment securities
Long-term guarantee deposits
Other
Allowance for doubtful accounts
Total non-current assets
Total assets-5-(Millions of yen)
Current quarter(As of June 30, 2021)

25,125
16,942
460
460
0
–
9,685
9,097

26,654
15,541678
677
112
10,198
9,943

588

254

1,490
648
–
890
55,243

1,727
647
25
1,047
56,533

3,508
1,746
1,762
321
12,83912,065739
52(17)
16,66971,912

3,459
1,727
1,731
307
12,432
11,651742
56(17)
16,19972,733

(Millions of yen)
Current quarter(As of June 30, 2021)

Previous fiscal year
(As of March 31, 2021)
Liabilities
Current liabilities:
Trade date accrual
Margin transaction liabilities:
Borrowings on margin transactions
Cash received for securities lending on margintransactions
Borrowings secured by securities:
Cash received on debt credit transaction of securities
Deposits received
Guarantee deposits received
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards for employees
Other current liabilities
Total current liabilities
Non-current liabilities:
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits
Provision for share awards for employees
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Reserves under special laws:
Reserve for financial instruments transaction liabilities
Total reserves under special laws
Total liabilities
Net assets
Shareholders’ equity:
Share capital
Capital surplus:
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings:
Other retained earnings:
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

-6-

7
1,248
426

–
1,023
502

822

520

1,027
1,027
18,856
733
1,950
932
681
–
–
1,287
26,725

1,646
1,646
22,001
555
1,950
46
296
13
223
769
28,527

800
1,760
2,232
166

800
1,764
2,191
–

9

9

340
66
5,376

342
48
5,155

101
101

101
101

32,20333,784

12,272

12,272

4,294
1,969
6,264

4,294
1,969
6,264

17,561
7,247
10,313
17,561(1,500)34,597

17,357
7,247
10,11017,357(1,638)34,2565,111
5,111
39,70971,912

4,692
4,692
38,94872,733

(2) Quarterly non-consolidated statements of income
For the three months ended June 30, 2021
For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
Operating revenue
Commission received:
Brokerage commission
Commission for underwriting, secondary distribution
and solicitation for selling and others for professional
investors
Fee for offering, secondary distribution and solicitation
for selling and others for professional investors
Other fees received
Net trading income
Financial revenue
Other
Total operating revenue
Financial expenses
Net operating revenue
Selling, general and administrative expenses:
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income:
Dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses:
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income:Reversal of reserve for financial instruments transaction
liabilities
Total extraordinary income
Extraordinary losses:
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit-7-(Millions of yen)
For the three months ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)

3,076
1,803

3,177
1,488

0

9

623

778

649
349
39
9
3,474
14
3,459

901
279
52
6
3,514
14
3,500

275
1,686
383
483
94
77
52
3,054
404

287
1,754
412
455
86
77
49
3,124
376

123
39
162

163
41
205

0
0
567

0
0
581

5

–

5

–

2
5
8
564
81
91
172
391

–
5
5
576
3
125
128
447

(3) Notes to quarterly non-consolidated financial statements
Going concern assumption
Not applicable.
Significant changes in shareholders’ equity
Not applicable.
Changes in accounting policies
1) Application of the Accounting Standard for Revenue Recognition, etc.
We have applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31,
2020; hereinafter the “Accounting Standard for Revenue Recognition”), etc. from the beginning of thefirst quarter of the fiscal year ending March 31, 2022. When control of a promised good or service istransferred to a customer, we recognize revenue at the amount expected to be received in exchange forthe good or service. As a result, rebates and other consideration to be paid to a customer were previously
accounted for as selling, general and administrative expenses, but the accounting method has beenchanged to the one that deducts them from the transaction price.
The application of the Accounting Standard for Revenue Recognition, etc. is pursuant to the transitional
treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of the retroactive application, assuming the new accounting policy had been
applied to periods prior to the beginning of the first quarter of the fiscal year ending March 31, 2022,
was added to or subtracted from the beginning balance of retained earnings of the first quarter of the
fiscal year ending March 31, 2022, and thus the new accounting policy was applied from such beginningbalance.
As a result, operating revenue, net operating revenue, and selling, general and administrative expenses
decreased by ¥24 million. There was no impact of the change on operating profit, ordinary profit, profit
before income taxes, or the beginning balance of retained earnings of the fiscal year ending March 31,
2022.
2) Application of the Accounting Standard for Fair Value Measurement, etc.
We have applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4,
2019; hereinafter the “Accounting Standard for Fair Value Measurement”), etc. from the beginning of
the first quarter of the fiscal year ending March 31, 2022. In accordance with the transitional treatment
set forth in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019), we apply
the new accounting policy set forth in the Accounting Standard for Fair Value Measurement, etc. for
future periods. This has no impact on the consolidated financial statements.

-8-

3. Supplemental information(1) Commission received(i) Commission by line item
(Millions of yen)

Brokerage commission:
Stocks
Bonds
Beneficiary certificates
Commission for underwriting, secondary
distribution and solicitation for sellingand others for professional investors:
StocksFee for offering, secondary distribution
and solicitation for selling and others for
professional investors
Other fees received
Total

For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
1,803[1,750][0][52]

For the three months ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
1,488[1,475]
[–]
[12]

0

9

3,019.2[0][9]3,019.2

623

778

124.9

649
3,076

901
3,177

138.8
103.3

For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
1,752
0
1,315
8
3,076

For the three months ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
1,487
0
1,683
5
3,177

For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
273
75
[45]
[30]
349

For the three months ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
189
89
[55]
[34]
279

(ii) Commission by product

Stocks
Bonds
Beneficiary certificates
Other
Total

82.5
84.3
–
23.9

(Millions of yen)

(2) Net trading income

Stocks, etc.
Bonds, foreign exchange, etc.:
Bonds, etc.
Foreign exchange, etc.
Total

Year-on-yearchange (%)

Year-on-yearchange (%)
84.9
40.9
128.0
71.4
103.3
(Millions of yen)

-9-Year-on-yearchange (%)
69.2
118.2
121.7
113.0
79.9

(3) Stock trading volume (excluding futures trading)

Total:
Brokerage
Dealing
Brokerage (%)
Exchange participation share (%)
Brokerage commission per stock on clienttransaction (yen)For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
NumberAmountof shares
171
289,747[169][267,300][2][22,447]
98.8
92.3
0.07
0.06
10.32

(Millions of shares, Millions of yen)
For the three months ended
June 30, 2021
Year-on-year change (%)(From April 1, 2021
to June 30, 2021)
NumberNumberAmountAmountof sharesof shares
129
249,054
75.2
86.0
[128]
[233,729][75.6][87.4][0][15,324][46.0][68.3]
99.3
93.8
0.06
0.05
–
11.51

(4) Dealing volume of underwriting, public offering and secondary distribution
For the three months ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)(Thousands of shares, Millions of yen)
For the three months ended
June 30, 2021
Year-on-year change (%)(From April 1, 2021
to June 30, 2021)

Underwriting:Stock (Number of shares)
13
114
844.3
Stock (Amount)
7289
4,130.7
Bond (Face value)–––
Beneficiary certificates (Amount)–––
Commercial paper & foreign securities–––(Face value)
Offering and secondary distribution
Stock (Number of shares)
9
76
775.9
Stock (Amount)
5158
3,141.2
Bond (Face value)–10–
Beneficiary certificates (Amount)
107,600
103,063
95.8
Commercial paper & foreign securities–––(Face value)
Note: The dealing volume of offering and secondary distribution includes the amount of secondary distribution and the dealing
volume of private offering.

(5) Capital adequacy ratio

Basic items
Complementary items
Deductible assets
Unfixed equity capital(A) + (B) – (C)(A)
Valuation difference on available-forsale securities
Reserve for financial instruments
transaction liabilities
Total (B)(C)
(D)

Previous fiscal year
(As of March 31, 2021)
33,946(Millions of yen)
Current quarter(As of June 30, 2021)
34,256

5,111

4,692

101

101

5,213
5,342

4,793
5,343

33,81733,707

Market risk
1,531
1,444
Counterparty risk
413
470
Risk items
Basic risk
2,905
3,042
Total
(E)
4,850
4,957
Capital adequacy ratio (%)(D) / (E) × 100
697.1
679.8
Note: The number of shares of treasury stock, which was to be deducted from the calculation of basic items, includes the sharesof the Company’s stock held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for BBT and J-ESOP.

- 10 -

(6) Quarterly trends of operating results
Previous fiscal year

(Millions of yen)
Current fiscal
year
1st quarter(Apr. 1, 2021 Jun. 30, 2021)

1st quarter(Apr. 1, 2020 Jun. 30, 2020)

2nd quarter(Jul. 1, 2020 Sep. 30, 2020)

3rd quarter(Oct. 1, 2020 Dec. 31, 2020)

4th quarter(Jan. 1, 2021 Mar. 31, 2021)

Commission received

3,076

3,544

3,603

3,666

3,177

Net trading income

349

400

214

275

279

Financial revenue

39

55

53

51

52

Operating revenue:

9

9

9

9

6

3,474

4,009

3,880

4,001

3,514

14

20

20

15

14

3,459

3,989

3,860

3,985

3,500

275

308

346

399

287

Personnel expenses

1,686

1,803

1,746

1,720

1,754

Real estate expenses

383

350

367

369

412

Office expenses

483

464

466

492

455

Depreciation

94

92

95

97

86

Taxes and dues

77

53

50

48

77

52

45

45

60

49

3,054

3,118

3,116

3,187

3,124

404

870

743

798

376

Non-operating income

162

41

148

50

205

Non-operating expenses

0

0

1

12

0

567

911

891

836

581

Extraordinary income:Reversal of reserve for financial
instruments transaction liabilities
Total extraordinary income

5

(4)

(0)

–

–

5

(4)

(0)

–

–

Extraordinary losses:
Provision of reserve for financial
instruments transaction liabilities
Loss on sale of investment securities

–

–

1

1

–

–

1

72

–

Loss on valuation of investment securities

2

–

–

241

–

Impairment loss

5

–

–

–

5

Settlement package

–

–

–

32

–

Total extraordinary losses

8

–

2

348

5

Profit before income taxes

564

907

887

487

576

Income taxes - current

81

334

170

379

3

Income taxes - deferred

91

(55)

115

(136)

125

Total income taxes

172

278

285

242

128

Profit

391

628

602

245

447

Other
Total operating revenue
Financial expenses
Net operating revenue
Selling, general and administrative
expenses:
Trading related expenses

Other
Total selling, general and administrative
expenses
Operating Profit

Ordinary profit- 11 -–