JAPAN SECURITIES FINANCE CO., LTD.
Consolidated Financial Results for the Second Quarter
ended September 30, 2023
Name：Japan Securities Finance Co., Ltd.
Listing：Tokyo Stock Exchange Prime Market
Stock code number：8511
Address：1－2－10, Nihonbashi Kayaba－cho, Chuo－ku, Tokyo, Japan 103－0025
Phone：＋81－3－3666－3184(Millions of yen, rounded down to nearest million)

1. Consolidated Financial Results
for the Second Quarter of Fiscal 2023 (April 1, 2023 - September 30, 2023)(1) Consolidated Results of Operations(% change from year-on-year for those items)

Operating Revenues

Operating Income

Recurring Income

Net Income(Millions of Yen)(% change)(Millions of Yen)(% change)(Millions of Yen)(% change)(Millions of Yen)(% change)

Second Quarterof Fiscal 2023

24,679

17.1

5,944

31.3

6,489

26.4

4,682

13.9

Second Quarterof Fiscal 2022

21,081

40.0

4,526

31.5

5,135

33.3

4,110

49.7

Note: Comprehensive Income Fiscal2023 2Q : ¥8,552million(420.8%) Fiscal2022 2Q : ¥1,642million(△51.3%)

Net Income per ShareEPSNet Income per Share(Yen)(Yen) (fully diluted)

Second Quarterof Fiscal 2023

54.32

―

Second Quarterof Fiscal 2022

46.09

―

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio(Millions of Yen)

(Millions of Yen)

(%)

As of
Sep.30, 2023

16,271,887

142,254

0.9

Fiscal 2022

14,056,217

135,728

1.0

Fiscal2023 2Q : ¥142,254million

Fiscal2022 : ¥135,728million

Reference:

Equity2. Dividends
Interim

Dividends per Share
Year-End
Annual

(Yen)

(Yen)

(Yen)

Fiscal 2022

16.00

16.00

32.00

Fiscal 2023

17.00
27.00

44.00

Fiscal 2023 (Forecast)
Note:

Amendment of Forecast

Yes

13. Consolidated Estimated Figures for fiscal 2023(April 1,2023－March 31,2024)(% change from the previous fiscal year)

Operating Income

Full-year
Note:

Recurring Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

8,900

40.1

9,800

28.9

7,000

17.3

81.48

Amendment of Estimated Figures

Yes* Notes(1) Changes in the scope of important consolidation for subsidiaries : None
(2) Adoption of specified accounting methods for quarterly consolidated financial statements : None
(3) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies caused by revision of accounting standards : None
② Changes in accounting policies other than ① : None
③ Changes in accounting estimates : None
④ Restatement : None
(4) Number of Issued Shares(common stock)① Number of issued shares (Including treasury stock)
as of Sep. 30, 2023 : 88,000,000 as of Mar. 31, 2023 : 96,000,000② Number of Treasury stocks
as of Sep. 30, 2023 : 2,188,616 as of Mar. 31, 2023 : 9,803,815③ Average number of shares
For six months ended Sep. 30, 2023 :
86,206,105
For six months ended Sep. 30, 2022 :89,194,627(Note) The number of treasury stocks to be deducted from the calculation of the number of treasury stocks at
the end of the period and the average number of shares outstanding during the period (cumulative quarter)
includes our shares held by the Share Benefit Trust (BBT).

Note: Quarterly financial report is not subject to quarterly review by a certified public accountant orauditing firm.
Note: Explanations and other special notes concerning the appropriate use of business performance
forecasts.
The Company does not disclose earnings forecasts because the performance of the securities
finance business, which is the Group's main business, is significantly affected by trends in the stock
market, interest rates, and other factors.
In addition, for the purpose of disclosing information according to the type of business of theGroup, the figures calculated on the basis of the outstanding balance of Margin Loan business andother assumptions are presented.
Financial results are disclosed as soon as reasonable estimates can be made quarterly.

21. Qualitative Information on the Current Quarter Results(1) Qualitative Information on Consolidated Operating Results(Financial and Economic Environment)
During the current second quarter consolidated cumulative period (from April 1, 2023 to September 30,2023), the economic environment was characterized by concerns about a slowdown in the economy due
to the observation of prolonged monetary tightening in various countries in Europe and the UnitedStates, as well as a slowdown in the Chinese economy. However, the economy continued to recover,supported by improvements in corporate earnings and inbound demand.
Looking at the stock market, the Nikkei 225 (closing price) started at 28,188 yen at the beginning of theperiod, but fell to its lowest point of the period at 27,472 yen on April 6 due to concerns about aslowdown in the economy leading to a decline in US stocks. However, it rose due to expectations for
the Bank of Japan's continued monetary easing policy and various initiatives by listed companies torealize capital costs and stock prices, and reached its highest point of the period at 33,753 yen on July 3.
After that, it struggled to gain further ground and closed at 31,857 yen at the end of September.
Looking at the balance of standardized margin transactions buying on the Tokyo market and othermarkets (TSE, NSE, and PTS) during this period, the balance gradually decreased from the beginning of
the period from the 2.17 trillion yen range as stock prices rose, and reached its bottom for the period in
the 1.96 trillion yen range on May 19. However, it subsequently increased due to expectations for a risein stock prices, and reached its peak for the period in the 2.54 trillion yen range at the end of September.
On the other hand, the balance of standardized margin transaction sales increased from the beginning of
the period in the 530 billion yen range to reach its peak for the period in the 780 billion yen range on
May 19, but then decreased to 590 billion yen at the end of September.
(Results for the Second Quarter of Fiscal Year Ending March 2024)
Under such a market environment, the performance of our group during the current second quarter
consolidated cumulative period posted an increase in consolidated operating revenue to 24.679 billion
yen (up 17.1% year-on-year), consolidated operating income to 5,944 million yen (up 31.3% year-onyear), and consolidated ordinary income to 6,489 million yen (up 26.4% year-on-year), due to anincrease in margin transaction balances for both loans and securities lending, and continued strong
performance in securities financing business, mainly in bond repurchase / gensaki transactions andequity repo etc. Although net income attributable to parent company’s shareholders for the quarterdecreased due to the drop in special profits accompany a change to the retirement benefit system
recorded in the previous period, it increased to 4,682 million yen (up 13.9% year-on-year).
The business overview for each segment during the current second quarter consolidated cumulative
period is as follows:- Securities Finance Business
Operating revenues for securities finance business reached 22,888 million yen (up 19.3% year-on-year).
Looking at operating revenues by business segment, operating revenues for margin transactions reached69.67 billion yen (up 91.4% year-on-year). Due to an increase in margin transaction balances, with loanbalances averaging 274.1 billion yen during the period (an increase of 21.6 billion yen year-on-year)
and securities lending balances averaging 272.1 billion yen during the period (an increase of 86.1 billion
yen year-on-year), both interest on loans and securities lending fees increased, resulting in increased
revenues.
Operating revenue for the securities financing business reached 13.454 billion yen (up 29.7% year-onyear). Among these, bond repurchase / gensaki transactions (11.626 billion yen, up 29.8% year-on-year)
increased significantly due to strong transaction needs caused by tight supply and demand forgovernment bonds. Equity repo, etc. (875 million yen, up 15.6% year-on-year) increased as balances
remained at high levels. General stock lending (523 million yen, up 59.0% year-on-year) and loans fornegotiable margin transactions (128 million yen, up 95.9% year-on-year) increased due to increased
activity in stock market. Loans to retail (299 million yen, up 13.0% year-on-year) increased due to theactive stock market and success in the improvement of product quality.
Other revenues came in at 2,466 million yen (down 52.4% year-on-year). In our securities investment
business which is conducted from a standpoint of securing liquidity and strengthening the revenue base3

for our margin transaction business and securities financing business, revenues decreased due to a
decline in profits from the sale of government bonds held as part of the portfolio replacement carriedout in the previous period. However, operating expenses also decreased due to a decline in losses fromthe sale of foreign bonds held.
- Trust and Banking Business
Operating revenues for our trust banking business came in at 1,381 million yen (down 6.8% year-onyear). Although custodian type trust services continued to perform well and trust fees increased, interest
income from securities investment decreased.
- Real Estate Leasing Business
Operating revenues for our real estate leasing business reached 410 million yen (up 0.6% year-on-year).
(2) Qualitative Information on Consolidated Financial Condition(Status of Assets, Liabilities, and Net Assets)
As of the end of the second quarter of the consolidated accounting period (September 30, 2023), total
assets amounted to 16,271.8 billion yen (an increase of 2,215.6 billion yen year-on-year), total liabilities
amounted to 16,129.6 billion yen (an increase of 2,209.1 billion yen year-on-year), and total net assets
amounted to 142.2 billion yen (an increase of 6.5 billion yen year-on-year).
The main factors are as follows:- Assets:
Cash and deposits: decreased by 669.3 billion yen year-on-year due to a decrease in deposits to thecurrent account at the Bank of Japan.
Operating loans: increased by 161.6 billion yen year-on-year due to an increase in loans for margintransactions and loans at JSF Trust and Banking Co., Ltd.
Securities purchased under resale agreements: increased by 2,381.7 billion yen year-on-year due to anincrease in bond gensaki transactions.
Cash collateral provided for securities borrowed: increased by 140.6 billion yen year-on-year due to anincrease in bond repurchase transactions.
- Liabilities:
Call money and commercial paper: decreased by 835.0 billion yen and increased by 14.2 billion yen,respectively, year-on-year as the result of flexible funding in response to changes in loans and the likeon the asset side.
Securities sold under repurchase agreements: increased by 3,535.4 billion yen year-on-year due to anincrease in bond gensaki transactions.
Cash collateral received for securities lent: decreased by 810.0 billion yen year-on-year due to adecrease in bond repurchase transactions.
Borrowed money from trust accounts: increased by 163.3 billion yen year-on-year due to an increase instandby funds in the trust accounts at JSF Trust and Banking Co., Ltd.
- Net assets:
Shareholders' equity: increased by 2.6 billion yen year-on-year due to the recognition of quarterly net
income and other factors. Furthermore, both capital reserves and treasury stock, which is a deduction
item (△), decreased by 6.5 billion yen each due to the cancellation of treasury stock implemented in thefirst quarter, but there was no impact on the total.
Other accumulated comprehensive income: while the valuation difference on other securities declined
due to price fluctuations in securities and other holdings, this income increased by 3.8 billion yen yearon-year due to an improvement in deferred gains or losses on hedges.

4

[Reference]
Status of the Group's Business-by-Business Operating Revenues
Previous Consolidated
Previous Second Quarter Current Second Quarter Fiscal
Year (Full Year)(from April 1, 2022 to(from April 1, 2023 to
September 30, 2022)

AmountSeptember 30, 2023)(Millions of yen)

Composition
Ratio
(%)

(Millions of yen)

Composition
Ratio
(%)

(Millions of yen)

Composition
Ratio
(%)

19,191

91.1

22,88892.7

38,59490.8

Loans for margintransactions

3,640

17.3

6,967

28.2

8,003

18.8

Interest on loans

805

3.8

875

3.5

1,619

3.8

Interest on collateralmoney of securities
borrowed

272

1.3

452

1.8

565

1.3

Premium charges

2,011

9.5

4,888

19.8

4,711

11.1

Lending fees

398

1.9

579

2.3

808

1.9

Securities financing

10,371

49.2

13,454

54.5

21,95251.6

Loans for negotiablemargin transactions

65

0.3

128

0.5

149

0.4

Equity repo etc.

757

3.6

875

3.5

1,529

3.6

Loan to retail

264

1.3

299

1.2

544

1.3

General stock lending

329

1.6

523

2.1

799

1.9

Bond repurchase /gensaki transactions

8,954

42.5

11,62647.1

18,929

44.5

5,179

24.6

2,466

10.0

8,638

20.3

Trust and banking
business

1,482

7.0

1,381

5.6

3,115

7.3

Interest on loans

20

0.1

18

0.1

32

0.1

Trust fees

664

3.2

744

3.0

1,347

3.2

Others

797

3.8

619

2.5

1,734

4.1

407

1.9

410

1.7

808

1.9

21,081

100.0

24,679100.0

42,518100.0

Securities finance business

OthersReal estate managementbusiness
Total

5

Amount(from April 1, 2022 toMarch 31, 2023)
AmountStatus of the Group's Business-by-Business Transaction Balances (Average Balance)
Previous Consolidated
Previous Second Quarter Current Second Quarter Fiscal
Year (Full Year)(from April 1, 2022 to(from April 1, 2023 to
September 30, 2022)

September 30, 2023)(from April 1, 2022 toMarch 31, 2023)(billions of yen)(billions of yen)(billions of yen)

252.4

274.1

254.7

185.9

272.1

188.9

11,558.6

12,027.4

11,473.9

Loansfornegotiablemargin transactions

17.4

35.7

18.8

Equity repo, etc

695.2

787.3

697.7

Loans to retail

16.0

19.1

16.7

General stock lending

34.0

122.8

63.3

10,795,9

11,062.4

10,677.2

555.9

546.8

539.9

Loans for margintransactions
Securities lent for margintransactions
Securities financing

Bond repurchase / gensaki
transactions
Trust Bank Loans6(3) Qualitative Information on Consolidated Performance Forecasts
As the performance of our main business, securities financing, is greatly influenced by stock market
conditions and trends in interest rates and the like, we do not disclose performance forecasts. Instead, inorder to provide disclosure appropriate for our group’s business conditions, we have decided to postestimated values that are calculated based on the prerequisites for margin transaction balances and thelike.
As the margin transaction business and securities finance business for the current second quarter
cumulative period are performing at levels exceeding our expectations, we have revised our estimatedvalues for operating income, ordinary income, and net income attributable to parent company’s
shareholders upwards from the previous estimates (announced on August 2023).
[Estimated Values, etc.]
Note: Have the consolidated performance estimated values and the like been revised in this quarter: Yes[Estimated Values for Consolidated Performance](Full Year)(millions of yen)(millions of yen)

Net Income
Attributable toParent Company
Shareholders(millions of yen)Previous Estimate (A)

8,400

9,400

6,700

77.65

Revised Estimate (B)

8,900

9,800

7,000

81.48

500

400

300

6.0

4.3

4.5

6,354

7,601

5,966

2,545

2,198

1,033

40.1

28.9

17.3

Operating Income Ordinary Income

Increase/Decrease(B-A)
Increase/Decrease
Rate (%)(Reference)
Actual Results in
Previous Period (C)Increase/Decrease(B-C)
Increase/Decrease
Rate (%)

Net Income Per
Share
(yen)

67.76

[Balances for Margin Transaction Business Serving as Premise for Estimated Values]
Average Balance of Margin Transactions: Loans 260 billion yen (±0 billion yen), Securities Lending
240 billion yen (+10 billion yen)Margin Transaction Interest Rates, etc. : Loan Interest Rate 0.6% per annum, Securities Borrowing Fees
0% per annum, Securities Lending Fees 0.4% per annum(Note: Figures in parentheses are compared to the premised balances in the previously announced
estimates.)7

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets

Fiscal 2022
as of M ar. 31, 2023

AssetsCurrent assets
Cash and deposits
Call loans
Securites
Operating loans
Securities purchased under resale agreements
Cash collateral provided for securities borrowed
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Bad debts
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets
Liabilities
Current liabilities
Call money
Short-term borrowings
Current portion of long-term borrowings
Commercial papers
Securities sold under repurchase agreements
Cash collateral received for securities lent
Income taxes payable
Provision for bonuses
Provision for bonuses for directors and other officers

Borrowed money from trust account
Other
Total current liabilities

8(millions of yen)
Current 2Q
as of Sep. 30, 2023

1,598,274－
71,013
955,550
3,561,406
6,669,821
405,951△ 165
13,261,853

928,887
10,000189,448
1,117,156
5,943,123
6,810,521
499,925△ 119
15,498,944

5,997
916

5,906
791

745,62181
1,180
40,648△ 81
787,450
794,364
14,056,217

712,12276
1,264
52,858△ 76
766,245772,942
16,271,887

2,190,400
92,0101,000
451,000
4,781,801
5,073,776
750
495
107
871,335
219,774
13,682,448

1,355,400
102,0101,000
465,254
8,317,232
4,263,685
941
516－
1,034,719
149,923
15,690,684

Fiscal 2022
as of M ar. 31, 2023

Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for share awards for directors and other officers

Retirement benefit liability
Asset retirement obligations
Derivatives liabilities
Other
Total non-current liabilities
Total Liabilities
Net Assets
Shareholders’equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

9(millions of yen)
Current 2Q
as of Sep. 30, 2023

232,700
2,196
74
240
217
56
2,013
542
238,040
13,920,489

433,800
3,943
74
186
232
57
97
557
438,949
16,129,633

10,0008,878
118,702△ 7,655
129,925

10,0005,181
119,163△ 1,763
132,581△ 4,300
9,782
168
152
5,802
135,728
14,056,217△ 9,444
18,806
168
143
9,672
142,254
16,271,887

(2) Quarterly Consolidated Income Statements and Quarterly Consolidated Comprehensive Income
Statements(Quarterly Consolidated Income Statements)

Operating revenue
Interest on loans receivable
Interest income on securities purchased under resale agreements
Interest income on cash collateral provided for securities borrowed

Securities lending fees
Other operating revenue
Total operating revenue
Operating expenses
Interest expenses
Interest expenses on securities sold under repurchase agreements

Securities borrowing fees
Other operating expenses
Total operating expenses
Operating gross profit
General and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method

Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Commission for purchase of treasury shares
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investments in securities
Gain on revision of retirement benefit plan
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10

Previous 2Q(millions of yen)
Current 2Q

Apr.1,2022-

Apr.1,2023-

Sep.30,2022

Sep.30,2023

1,229
5,019
1,309
5,792
7,731
21,081

1,398
6,699
1,503
9,914
5,162
24,679

440
3,052
5,895
3,584
12,973
8,108
3,581
4,526

620
3,299
10,625488
15,033
9,645
3,701
5,944

134
125
125
144
81
612

113
149
249
12
33
558

2
0
0
3
5,135

2
11
0
13
6,489

－
671
671
5,806
1,415
280
1,696
4,110
－
4,110

18
－
18
6,508
1,803
22
1,826
4,682
－
4,682

(Quarterly Consolidated Comprehensive Income Statements)

ProfitOther comprehensive income
Net unrealized valuation difference on available-for-sale securities

Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11

Previous 2Q(millions of yen)
Current 2Q

Apr.1,2022-

Apr.1,2023-

Sep.30,2022

Sep.30,2023

4,110

4,682

△ 15,003
12,52223△ 11△ 2,468
1,642
1,642
－

△ 5,172
9,023
△8
26
3,870
8,552
8,552
－

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholders’ Equity)
Based on the resolution of the Board of Directors meeting held on March 20, 2023, the Company
cancelled 8,000,000 shares of treasury stock on April 20, 2023, resulting in a decrease of 6,532 million
yen in capital surplus and a decrease of 6,532 million yen in treasury stock.
Furthermore, based on the resolution of the Board of Directors meeting held on May 9, 2023, theCompany disposed of 48,600 shares of treasury stock through third-party allocation to JSF Employees
Stock Ownership Plan, with June 30, 2023 as the payment deadline, resulting in an increase of 9 million
yen in capital surplus and a decrease of 39 million yen in treasury stock.
In addition, at the Board of Directors meeting held on May 9, 2023, the Company resolved to acquire up
to 3,300,000 shares of its own stock for a total acquisition cost of 3.3 billion yen between May 10, 2023
and March 31, 2024, and has acquired 511,200 shares for 716 million yen between May and September2023.
As a result of these actions, among others, the Company's capital surplus was 5,181 million yen, retained
earnings were 119,163 million yen, and treasury stock was 1,763 million yen at the end of the second
quarter of the current fiscal year.
(Segment Information)
I. Consolidated cumulative period up to the end of the second quarter of the previous year (from April 1,
2022 to September 30, 2022)
1. Information on the amount of operating revenue and profit or loss for each reporting segment
Securities and Financial Services Trust Banking Real Estate Rental Total(million of yen)
Securities
financebusiness
Operating Revenue
Revenue from externalcustomers
Internal operating revenue ortransfer amount between
segments
Total
Segment profit (ordinary profit)

Trust andbankingbusiness

Real estate
managementbusiness

Total

19,191

1,482

407

21,081

20

134

194

349

19,211
5,824

1,616
851

602
320

21,4306,996

2. The difference between the total amount of profit or loss for each reporting segment and the amountrecorded in the quarterly consolidated income statement, and the main contents of such difference(matters related to adjustment of differences)(million of yen)
ProfitAmountTotal for reporting segments
Elimination of inter-segment
transactions
Equity in earnings of affiliates
Other adjustment amount
Ordinary profit in the quarterly
consolidated income statement

6,996△1,987
125
－
5,135
12

II. Consolidated cumulative period up to the end of the second quarter of the current year (from April 1,
2023 to September 30, 2023)
1. Information on the amount of operating revenue and profit or loss for each reporting segment(million of yen)
Securities
financebusiness
Operating Revenue
Revenue from externalcustomers
Internal operating revenue ortransfer amount between
segments
Total
Segment profit (ordinary profit)

Trust andbankingbusiness

Real estate
managementbusiness

Total

22,8881,381

410

24,679

10

68

196

274

22,898
6,587

1,450
857

606
373

24,9547,818

2. The difference between the total amount of profit or loss for each reporting segment and the amountrecorded in the quarterly consolidated income statement, and the main contents of such difference(matters related to adjustment of differences)(million of yen)
ProfitAmountTotal for reporting segments
Elimination of inter-segment
transactions
Equity in earnings of affiliates
Other adjustment amount
Ordinary profit in the quarterly
consolidated income statement

7,818△1,578249－
6,489(Significant subsequent events)
Not applicable.

13