INVAST SECURITIES CO.,LTD.

Financial Highlights(Consolidated)
2nd Quarter Fiscal Year ends Mar. 2017

Invast Securities Co., Ltd.

Financial Highlights for the Fiscal Year Ended March 2017

Consolidatedresults
OTC FX

・Operating income
・Ordinary income
・Net income

1,640 million yen△57million yen△55million yen

year-ago
periodDitto
Ditto

1,995million yen
215million yen
93million yen

83.4%
－％
－％

While transaction volumes declined in the domestic business as a result of a slump in the foreign exchange
market from the summer and sales and profits were down, results strongly improved for the overseas
subsidiary IFS that has achieved stable profitability
・Operating revenues
・Segment profit or loss

921million yen
13million yen

Ditto
Ditto

1136million yen
214million yen

81.1%
6.4%

Sales and profits were down as a result of a market with low volatility in addition to the delay in the release ofST24 Full Auto

Exchange FX・Operating revenues
・Segment profit or loss

438million yen
25million yen

Ditto
Ditto

570million yen
101million yen

76.8%
25.1%

Decrease in transaction volume and sales and profits due in part to a market with low volatility

Overseas
Financial Service

・Operating revenues
・Segment profit or loss

283million yen
15million yen

Ditto
Ditto

256million yen△94million yen

110.3%-%

Profitability achieved on single-month, quarterly, and half-year basis, and earnings are being expanded throughstrengthened corporate sales activities

Others・Operating revenues
・Segment profit or loss

26million yen△106million yen

Ditto
Ditto

48million yen
10million yen

54.1%
-%

Loss recorded due to sluggish volume for Click365 combined with a delay in plans for TriAuto ETFCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2Operating Revenues and Balance of Deposited Margin for H1 of
FY ends Mar. 2017 (Non-Consolidated)
Balance of deposited margin
Net operating revenue
While operating revenues increased due to anincrease in transactions stemming from the Brexit,
there was a significant decrease in the balance ofdeposited margin億(100The customer base grew and the balance ofdeposited margin increased due to strengthened
advertising with the release of ST24 Full Auto680(million yen)350300

670

250
660

200650150100640

506300AprMay
1Q FY 2017

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

JunJulAug

Sep

2Q FY 20173

Summary of Financial Results 2Q FY ends Mar. 2017
(Millions of yen)

2Q FY 2016

Year-on-year change

2Q FY 2017

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Operating revenues

1,756

1,995

1,386

1,666

78.9%

83.5%

Commissions earned

509

524

363

379

71.4%

72.5%

1,040

1,250

872

1,120

83.8%

89.7%

1,429

1,762

1,453

1,715

101.7%

97.3%

Operating income

326232△66△50-％-％Ordinary income

331215△62△57-％-％--66-％-％20993△61△55-％-％(exchange FX, etc.)
Trading profit and loss
(over-the-counter FX)
Selling, general andadministrative expenses

Extraordinary income/loss
Net income

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4EBITDA(Millions of yen)
FY ended March 2014

FY ended March 2015

FY ended March 2016

FY ended March 2017

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Net income
before taxes
Extraordinaryincome/lossInterest
expenses
Depreciation
costs

471

49

3,528

647413

277

177

90

124

△71△374

77

△128

24

△03,635

132

542

470

9△33--(0)△51260--------------

91

93

102

98

111

114

107

93

89

88

88

86

88

84

EBITDA538

143△4△26△383

57

375

304

180

212

17224

159

△443Q

4Q

(million yen)
600

400

While EBITDA has been positive for eight
consecutive quarters, it became negative forthe first time in two years

2000-200

Note: EBITDA was calculated by the formula of:

-400
1Q

2Q

3Q4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY ended March 2014 FY ended March 2015 FY ended March 2016 FY endedMarch2017

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

Net income before taxes – extraordinary
income/loss + Interest expense + Depreciation =EBITDA. This represents an income metric that
illustrates what level of cash flow was generated
by capital including borrowed capital5

Changes in selling, general and administrative expenses [consolidated]
Advertising expenses（Millions of yen ）Exchange market association and other such expenses

FY ended March 2016

Real estate related expenses

1Q

Labor costs
Depreciation costs

Others（Millions of yen ）
1,000
800

2Q

3Q

4Q

Tot

Advertisingexpenses

107

117

150

110

485

Exchange market
association andother such
expenses

101

114

91

115

423

Real estate related
expenses

273

281

249

257

1,061

Labor costs

236

252

237

235

961

Depreciation costs

89

88

88

86

352

Others

63

36

31

56

187

Total

872

890

849

862

3,474

600
FY ended March 2017
1Q

400

2Q

3Q

4Q

Tot

Advertisingexpenses

112

154

266

200

Exchange marketassociation andother such
expenses

10090

191

0

Real estate related
expenses

270

282

553

Labor costs

233

211

444

Depreciation costs

8884172

Others444286

Total

848

866

1,715

１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q
FY 2016

FY 2017

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6Status of assets and liabilities [Consolidated]（million yen）

Assets（million yen）

96,615million yen

100,000

Liabilities

100,000

Liabilities 86,165million yen
Net asset 10,450million yen

80,00080,00060,00060,00040,00040,00020,00020,00000FY 2014 FY 2015 FY 2016 FY 2017
Guarantee deposits

2Q

FY 2014 FY 2015 FY 2016 FY 2017
2Q

Foreign exchange trade accounts receivable

Deposits received

Cash and deposits

Foreign exchange trade accounts payable

Deposits

Other current liabilities

Other current assets

Fixed liabilities

Intangible fixed assets
Tangible fixed assets
Investments and other assets

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Reserves under special laws
Net assets

7

Total deposited margin(100 million yen)

Growth due to the subsidiary in Australia (IFS) andthe release of the Full Auto feature for ST24

700

69.1 billion yen

600

500
JanMaySep2014

Copyright© INVAST SECURITIES CO.,LTD. All Rights ReservedJan2015

MaySepJanMaySep

20168Invast Financial Services (IFS)• July-Sep turnover was 44% higher than Apr-June.
The effects of the new business focus, the new Marketing and the new operational
structure, have finally been seen in the July – Sep 2016 performance.

 IFS continues to build a strong presence in the industry, with our Marketing and PR
gaining a lot of attention.
 Expanded the business to provide liquidity to financial services companies“Pure Prime”.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

9Grow the overseas financial business: IFS
Significant increase in balance of deposited margin, as record highlevel was recorded once again, continuing from the previous month7000(10,000 Australian dollars)
120

Balance of deposited margin
Net operating revenue

6000

100

5000
80
4000
60

3000
40
2000

20

1000

00
12345678

9 10 11 12 1

2014

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2345672015

89 10 11 12 1234567892016

10Percentage of Operating Revenues Accounted for by Each Segment
Percentage accounted for by Overseas Financial
Service (IFS) growing year by year
2Q FY 2015
8%

2Q FY 2016

2Q FY 2017

13%

17%

OTC FX
Exchange FX

Overseas Financial ServiceOthers

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

11Change in Dividend Policy Dividend policy– Dividends twice a year:interim and year-end dividends– Consolidated dividend payout ratio of 30% or– Consolidated dividend on equity ratio (DOE) of 4% (annually)

 Actual result and estimation for the year ending March 2017
– Interim dividend

36yen– Year-end dividend

36 yen (estimation)– Total72 yen (estimation)

 Dividend Yield (estimate)

6.15 ％*Stock price:calculated with the closing price (1,171 yen) on Oct 27 , 2016
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

12Release of the ST24 Full Auto Function⇒ Function for constant automatic selection and implementation of a favorable

strategy in order to improve investment management results As Full Auto automatically selects a favorable strategy in line with conditions set by the customer fromthe most abundant variety of strategies in the world* (approximately 6,500 strategies), it makes it possible
for customers to continue investing while re-allocating, making it easy to obtain stable earnings andimprove investment gains*Number 1 in the world for number of strategies among business handling mirror trading (source: research by Tradency, July 1, 2016)

Automatic selection offavorable strategy

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved13

About the Invast Mission Project

The Invast Mission Project is a new point program that makes it possible to donate or exchange for goods the social contribution
points that are accumulated through FX trades at Invast Securities in order to support certified NPOs. Preferential tax treatment isalso possible when customers select a certified NPO to donate to and submit their tax filings (in the form of a donation exclusion
or tax deduction).*Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

14Company overview
Invast Securities Co., Ltd. (as of September 30th 2016)■ Company name:■ Head office:■ Established:

August 10, 1960

■ Paid in capital:5,965,080,000 yen■ Market listing:

JASDAQ (Code: 8709) (*1) Listed on March 6, 2006

■ President:President and CEO Takeshi Kawaji■ Employees:

56[Non-consolidated]
76[Consolidated]■ Licenses:

Financial Instruments Business Operators (Type 1/ Type 2), Investment
Advisory and Agency BusinessDirector-General of Kanto Local Finance Bureau (Kinsho) No. 26■:

Tokyo Financial Exchange

Membership

INVAST SECURITIES CO., LTD.
NBF Toranomon Building
1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved15