Note: This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

December 22, 2023

Company name ： Mito Securities Co., Ltd.
Representative ： Katsunori Kobayashi, President and Representative Director(Securities code: 8622 Prime Market, Tokyo Stock Exchange)
Inquiries： Yuji Iimura, Manager, Corporate Planning Department
Phone： +81-3-6636-3061

Actions to Achieve Management Conscious ofCapital Costs and Stock Prices

Mito Securities Co., Ltd. hereby announces that its Board of Directors has
analyzed and evaluated the current actions to manage capital costs andstock prices. The Board has resolved on a policy to guide future efforts
toward improvement, as detailed in the attached document.

Securities Code: 8622

Actions to Achieve Management Conscious ofCapital Costs and Stock Prices
December 22, 2023
Mito Securities Co., Ltd.

Note : This document has been translated from a part of the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the originalshall prevail.

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

Analysis and Evaluation of Current Status
The Company has been working to improve ROE by implementing various measures in accordance with its
Medium-term Management Plan. Although PBR has been improving as a result of these efforts, it remains
below 1x.
We believe this is due to the fact that our current ROE is lower than our estimated cost of shareholders'equity in a broad sense, which is approximately 6% to 9%.
We recognize that it is necessary to reduce the cost of shareholders' equity in a broad sense to improve
our PBR going forward.

●PBR (times)

0.73
0.52

0.38

2019.30.33

2020.30.45

ＰＢＲ＝ＲＯＥ × ＰＥＲ

0.48＝ＲＯＥ ×2021.32022.32023.32023.9※Calculated using year-end share price and net
assets per share1

cost of shareholders' equity in a broad
sense●How to improve our PBR Reduce cost of shareholders' equity in a broad sense (↓)

5.2

4.9
3.5

2019.3＝ＲＯＥ ×1
cost of shareholders‘ equity - expected
growth rate

 Improve ROE (↑)●ROE（％）

0.5●PBR formula2.1

2020.3and increase expected growth rate (↑)
2.0

2021.32022.3⇒Reduce cost of shareholders‘ equity (↓)

2023.3●The Company‘s recognized cost ofshareholders’ equity
2023.9Estimated cost of shareholders‘ equity
approx. 6% to 9%2

Efforts Toward Sustainable Enhancement ofCorporate Value
To sustainably enhance corporate value, we aim to improve ROE by increasing cash
flow and reduce the cost of shareholders' equity by increasing expected growth andenhancing communication with the market.

Increase incorporate value

Important item

Specific initiatives
Offer financial services with value-added features for customers

Expansion of customer
base and sales base

Build competitive advantage as a community-based face-to-facesecurities firm
Expand customer base by solving local issues and increasing presenceStrengthen organizational responsiveness to improve customer lifetime
value

Improvement of ROE
Increase in cash flow

Increase productivity through human capital investment, digitalization,etc.
Improve cost coverage ratio through SG&A stock income

Reduction in cost ofshareholders' equity
Increase in expected
growth rate

Efficient use of capital

Implement capital control with consideration of shareholder value

Growth strategy

Achieve sustainable growth and consider non-continuous growthstrategies

Corporate GovernanceIR

Implement capital cost management

Enhance market-oriented information disclosure and dialogue3