May 9, 2023
To whom it may concern
Company: Japan Securities Finance Co., Ltd.
Representative Executive Officer & President: Shigeki Kushida(Code No. 8511, TSE Prime)
Contact: Kentaro Hibi, General Manager, Corporate Governance Office(E-mail:info@jsf.co.jp)

Notice on Disposition of Treasury Stock by Third-Party Allotment

Japan Securities Finance Co., Ltd. (JSF) hereby informs you that at a meeting of ourBoard of Directors held on May 9, 2023, we passed a resolution for the disposition oftreasury stock through a third-party allotment, as follows.
１．Summary of the disposition(１) Date of disposition

June 30, 2023

(２) Class and number ofshares for disposition

49,000 shares of the Company’s common stock (Note)(３) Disposition price¥ 1,018 per share(４) Total disposition value¥ 49,882,000 (Note)(５) Disposition method

By way of third-party allotment(６) Planned allottee

Japan Securities Finance Employee Shareholding
Association(７) OtherThe Company has filed a securities registration
statement in accordance with the Financial Instruments
and Exchange Act, regarding the disposition of treasurystock.

(Note) The figures for “number of shares for disposition” and “total disposition value” aremaximum, and the actual number of shares for disposition and the actual disposition
value are expected to be determined according to the number of members who join to
the Japan Securities Finance Employee Shareholding Association (hereinafter“Shareholding Association”) after the completion of the promotion of membership in
the Shareholding Association. Regarding “number of shares for disposition” and “totaldisposition value”, we plan to promptly announce them as soon as the number ofeligible individuals is determined.
２．Purpose and reason for the dispositionAs described in the press release “Notice on Company's Stock Incentive Program forEmployees” announced on November 28, 2022, to increase the job satisfaction andmotivation of our employees and to provide incentives to enhances our enterprise value overthe medium and longer term, we will grant shares of common stock (hereinafter "CompanyStock") issued by the Company to our employees (hereinafter the "Company's StockIncentive Program for Employees") in accordance with the Company's performance inFY2022.
Following the achievement of the Company's management target of 4% ROE for FY2022,
our Board of Directors has passed a resolution at a meeting held on May 9, 2023, toimplement a share incentive plan for its employees. For details, please refer to the "Notice on
the Implementation of a Company Stock Incentive Program for Employees" announcedtoday.
The Company Stock Incentive Program for Employees is to grant special incentive funds
to members and dispose of treasury stock (hereinafter “This Disposition of Treasury Stock”)
to the Japan Securities Finance Employee Shareholding Association (hereinafter“Shareholding Association”) with the contribution of such special incentive funds, which willbe allocated to a third party. Regarding the number of shares to be disposed of, themaximum number of 49,000 shares will be disposed of to the Shareholding Association,
which will be determined at a later date as noted in the above note "1. Summary of thedisposition” The granting of the special incentive to members is a grant of money, not a grantof monetary claims.
Please note that the scale of dilution due to This Disposition of Treasury Stock is 0.05% of
the total number of outstanding shares as of March 31, 2023, which is 96,000,000 shares,
and 0.06% of the total number of voting rights as of March 31, 2023, which is 870,226 votingrights (Note) (both percentages have been rounded off to two decimal places).

(Note) These figures are calculated based on the number of treasury stock as of March 31,2023 (8,770,527 shares). However, as stated in the press release "Announcement
regarding Cancellation of Treasury Stock" dated March 20, 2023, the Company
cancelled 8 million shares of treasury stock on April 20, 2023.

３．Overview of the Company Stock Incentive Program for Employees
Members(2) Provision of special incentives※ Withdrawal of stock(4)Third-party allotment payment(5) Disposition of treasury stock

Members’ stock

Shareholding
Association(6)Allocation andmanagement of stock

NomuraSecurities

The Company(3)Contributions(1) Subscription Agreement forCompany Stock(1) The Company and the Shareholding Association will enter into a share Subscription
Agreement regarding the disposition and underwriting of treasury stock.
(2) The Company will provide special incentive payments to Company employees who
are members of the Shareholding Association (hereinafter “Members”).
(3) Members will contribute the special incentive payments provided to the Shareholding
Association.
(4) The Shareholding Association collects the special incentive funds contributed byMembers and pays for the third-party allotment.
(5) Company disposes of treasury stock to the Shareholding Association.
(6) The allocated Company Stock is distributed to and managed for the members of theShareholding Association through Nomura Securities Co., Ltd. to which the Shareholding
Association outsources its shareholding operations.

※ Members are able to withdraw their allocated Company Stock to their personal securities
account as they choose.
４．Basis of calculation of disposition price and its details
This Disposition of Treasury Stock is aimed to implement the Company Stock Incentive
Program for Employees. The disposition price has been set at ¥1,018, the closing price of theCompany Stock on the Tokyo Stock Exchange, Inc. on May 8, 2023 (the trading day
immediately preceding the date of the resolution of the Board of Directors). This is the market
share price immediately prior to the date of the resolution passed by the board of directors,
and in the absence of any special circumstances indicating that the most recent share pricecannot be relied upon, we believe that it is a reasonable representation of the Company’sappropriate corporate value in the stock market and does not constitute a particularly
advantageous price for the allottee.
Furthermore, the deviation rate of this price from the average closing price of the Company
Stock on the Tokyo Stock Exchange (rounded off to two decimal places) is as follows.

PeriodAverage closing
price (Roundeddown to thenearest yen)

Deviation rate

1 month (April 7, 2023 to May 8, 2023) (Note)¥ 997

2.11 %

3 months (February 9, 2023 to May 8, 2023)¥ 1,007

1.09 %

6 months (November 9, 2022 to May 8, 2023)¥ 1,046-2.68 %(Note) Since April 9, 2023 is a business holiday, the closing price of April 7, 2023, which is the last business dayof the business holiday, is used for this calculation.

The Audit Committee of the Company (four members, three of whom are outside Directors)
has expressed their opinion that the process by which the Company judged that the above
disposition price does not represent a particularly advantageous price is rational consideringthat the disposition price was the closing price on the business day preceding the date on
which the Board of Directors passed the resolution.

５．Matters concerning procedures under the Code of Conduct
This Disposition of Treasury Stock does not require procedures to obtain an independent,
unbiased third-party opinion or to confirm shareholder intent as set forth in Article 432 of theTokyo Stock Exchange Securities Listing Regulations because: (i) it will result in a dilution ofless than 25%, and (ii) there will be no changes to controlling shareholders.

This is the English translation of the document originally written in Japanese for non-Japanese convenience.
Although Japan Securities Finance intends to faithfully translate the Japanese written documents into English
version, the accuracy and correctness of translation are not guaranteed, so you are kindly encouraged to refer tothe original Japanese version of the document.