August 9, 2024
Company name:

Mito Securities Co., Ltd.

Representative:

Katsunori Kobayashi, President and Representative Director(Securities code: 8622 Prime Market, Tokyo Stock Exchange)

Inquiries:

Masanobu Tamari, Manager, Finance Department
Phone：+81-3-6636-3071

Non-consolidated Financial Results for the Three Months Ended June 30, 2024 (Under Japanese GAAP)(Completion of the Interim Review by Certified Public Accountants and Others)
Mito Securities Co., Ltd. disclosed its non-consolidated financial results for the three months ended June 30, 2024

(under Japanese GAAP), on July 30, 2024. The Company hereby announces that the interim review of the quarterly
non-consolidated financial statements by certified public accountants and others has been completed.
There are no changes to the quarterly non-consolidated financial statements announced on July 30, 2024.

EndNon-consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
August 9, 2024
Company name:
Mito Securities Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
8622
URL:
https://www.mito.co.jp/
Representative:
Katsunori Kobayashi, President and Representative Director
Contact:
Masanobu Tamari, Manager, Finance Department
Phone:+81-3-6636-3071
Scheduled date of dividend payment:–
Preparation of supplementary briefing material on financial results:
None
Holding of financial results briefing:
None
Note: Amounts less than one million yen have been omitted.
1.

Non-consolidated financial results for the three months ended June 30, 2024
(from April 1, 2024 to June 30, 2024)(1) Operating results(Percentages indicate year-on-year changes.)Three months ended
June 30, 2024
June 30, 2023

Three months ended
June 30, 2024
June 30, 2023

Operating
Net operating
Operating profit
Ordinary profit
Profitrevenuerevenue
Millions ofMillions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
yen
4,043
13.3
4,031
13.4
805
35.9
1,022
33.4
850
3,570
33.9
3,555
34.0
592
–
766
–
723
Basic earnings per
share
Yen

Diluted earnings per
share
Yen

13.24
11.20

–
–

Total assets
Millions of yen

Net assets
Millions of yen

79,13474,03342,042
42,827%17.6–(2) Non-consolidated financial position
As ofJune 30, 2024
March 31, 2024

Reference: Capital (Shareholders’ equity + Valuation and translation adjustments):
As of June 30, 2024:¥42,042 million
As of March 31, 2024:2.

Net assets per share
%

Yen

53.1
57.8

659.60662.64¥42,827 million

Dividends
Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-endFirst
quarter-end
Fiscal year
Ended March 31, 2024
Ending March 31, 2025
Ending March 31, 2025 (forecast)
Note

3.

Capital ratio

Total

Yen

Yen

Yen

Yen

Yen

–
–

10.00

–

14.00

24.00

–

–

–

–

Although we have yet to determine the year-end dividend forecast for the fiscal year ending March 31, 2025, the Company has set aminimum annual dividend of ¥20.00 from the fiscal year ended March 2023 to the fiscal year ending March 2025.

Forecast of non-consolidated financial results for the fiscal year ending March 31, 2025
(from April 1, 2024 to March 31, 2025)
Our earnings could fluctuate greatly depending on the stock market trend and other factors. We therefore do not discloseearnings forecast on concern that it could adversely affect the investment decision of our shareholders and investors.
We will promptly disclose the preliminary results figures when the operating results for each quarter are roughly
estimated.

* 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:
None(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(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, 2024:
65,689,033 shares
As of June 30, 2023:
70,689,033 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024:
1,949,482 shares
As of June 30, 2023:
6,058,282 shares(iii) Average number of shares of common stock during the period
Three months ended June 30, 2024:
64,267,621 shares
Three months ended June 30, 2023:
64,627,650 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 fromthe calculation of the average number of shares of common stock during the period, includes the shares of
the Company’s stock held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for BBT and JESOP.
* Semi-annual financial results reports are exempt from interim audit conducted by certified public accountants or an audit
firm: Yes (voluntary)* 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, 2025 (from April
1, 2024 to March 31, 2025),” we have yet to determine the year-end dividend forecast for the fiscal year ending March
31, 2025 due to difficulty in forecasting earnings. However, for the three fiscal years under the Sixth Medium termManagement Plan (from the fiscal year ended March 2023 to the fiscal year ending March 2025), the Company would
like to express its gratitude to shareholders for their support thus far and has decided to set the minimum annual dividend
per share at ¥20.00, taking into account the current state of net assets. We will promptly disclose the forecast amount at
the timing when the second quarter-end and the fiscal year-end approach (during September 2024 and March 2025).

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 ···················································································································

3

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

4(1) Quarterly non-consolidated balance sheets ··········································································

4(2) Quarterly non-consolidated statements of income ··································································

6

For the three months ended June 30, 2023 and 2024 ·······························································

6(3) Notes to quarterly non-consolidated financial statements··· ······················································

7

Segment information, etc. ······························································································

7

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

7

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

7

Non-consolidated statements of cash flow ···········································································

7

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

8(1) Commission received ···································································································

8(2) Net trading income ······································································································

8(3) Stock trading volume (excluding futures trading) ···································································

9(4) Dealing volume of underwriting offering and secondary distribution ············································

9(5) Capital adequacy ratio ··································································································

9(6) Quarterly trends of operating results ··················································································

10

Independent Auditor’s Interim Review Report on the Quarterly Non-consolidated Financial Statements ··········

11

-1-

1. Overview of operating results, etc.
(1) Overview of operating results
During the first three months ended June 30, 2024 (hereinafter the “period under review”), the Japanese economy had
little sense of direction with a mix of positive and negative factors. Japan’s gross domestic product (GDP) in the JanuaryMarch 2024 quarter showed negative growth in both nominal and real terms. Leading, coincident, and lagging diffusionindexes remained firm in April and the growth rate of in the national CPI (comprehensive, excluding fresh food andenergy) gradually slowed until May. While real disposable income of working households was on the downturn trend
until April, real consumer spending of working households went up for the first time in 13 months in March. Meanwhile,the Economy Watchers Survey DIs for both current and future economic conditions slowed down after hitting a recent
peak in February.
In the U.S., the economy has been deteriorating. Although real GDP showed positive growth for seven consecutive
quarters, the growth rate was sluggish in the January-March 2024 quarter. In addition, the pace of increase in core CPI
has slowed down since April, compared with the January-March 2024 quarter, and the unemployment rate has been
gradually increasing. In the Eurozone, real GDP returned to positive growth in the January-March 2024 quarter. The
year-on-year growth rate of core CPI had been in decline until April, and the European Central Bank (ECB) cut interest
rates at the Governing Council meeting in June for the first time in 57 months.
During the period under review, the domestic stock market stayed in a narrow range until late April. This was because
persistent inflation dampened the expectations for an early interest rate cut in the U.S., which contributed to the sharp
market rise from January to March, and there was a growing concern over the Middle East situation, including Israel’s
attack on Iran. Subsequently, the Nikkei average generally remained range-bound between ¥38,000 and ¥39,000 withan eye on the long-term interest rate movements in Japan and the U.S., including a pause in the U.S. rate hike and a risein Japanese interest rates due to observations of monetary policy normalization. Until late June, the index remained firmbased on the higher stock prices due to renewed expectations for U.S. rate cut as well as the review of large value stocks.
Reflecting these factors, the Nikkei average for the period under review ended at ¥39,583.08, down 1.9% from the endof March 2024.
Under these circumstances, we reported increases in both operating revenue and net operating revenue during the period
under review, with operating revenue of ¥4,043 million (up 13.3% year-on-year) and net operating revenue of ¥4,031
million (up 13.4% year-on-year), which is the amount of operating revenue less financial expenses of ¥12 million (down
15.2% year-on-year). Selling, general and administrative expenses were ¥3,226 million (up 8.9% year-on-year). As aresult, we reported operating profit of ¥805 million (up 35.9% year-on-year), ordinary profit of ¥1,022 million (up33.4% year-on-year), and profit of ¥850 million (up 17.6% year-on-year).
Overview of the operating results are as shown below.
(i)

Commission received
For the period under review, total “Commission received” was ¥3,579 million (up 21.2% year-on-year).
(a) Brokerage commission“Brokerage commission” was ¥1,506 million (up 10.4% year-on-year). This was mainly due to an increase to¥297.4 billion (up 17.4% year-on-year) in the volume of stock brokered, resulting in brokerage commission
on stocks of ¥1,499 million (up 10.3% year-on-year). Meanwhile, brokerage commission of beneficiary
certificates was ¥7 million (up 24.4% year-on-year).
(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 ¥19 million (up 256.3% year-on-year).
(c) Fees for offering, secondary distribution and solicitation for selling and others for professional investors; andother fees received“Fees for offering, secondary distribution and solicitation for selling and others for professional investors,”
which mainly consists of investment trust sales commissions, was ¥815 million (up 20.1% year-on-year). Thiswas due to strong sales of mutual funds that invest in stocks of U.S. companies with sustainable growth, mutual
funds that invest in blue-chip companies listed on the financial instruments exchanges in the U.S. and aroundthe world, and mutual funds that make investments in semiconductor companies listed on the world’s securities
exchanges, mainly in Japan. In addition, “Other fees received” was ¥1,238 million (up 37.1% year-on-year)
mainly due to increases in agency commission for investment trusts and commission for mutual fund wraps.

(ii) Net trading income
For the period under review, “Net trading income” was ¥378 million (down 30.0% year-on-year) consisting of net
trading income for stocks of ¥317 million (down 33.9% year-on-year) due to a decrease in the trading volume of-2-

U.S. stocks and that for bonds and foreign exchanges of ¥60 million (up 1.9% year-on-year).
(iii) Financial revenue and expenses
For the period under review, “Financial revenue” was ¥79 million (up 12.0% year-on-year) mainly due to anincrease in interest income, and “Financial expenses” was ¥12 million (down 15.2% year-on-year) mainly due to adecrease in cost of margin transactions, resulting in a net profit of ¥67 million (up 18.9% year-on-year).
(iv) Selling, general and administrative expenses
For the period under review, “Selling, general and administrative expenses” was ¥3,226 million (up 8.9% year-onyear). This was mainly attributable to increases in “Personnel expenses” such as provision for bonuses due to anincrease in operating revenues as well as “Real estate expenses,” “Administrative outsourcing expenses,” and others.
(v) Extraordinary income and losses
For the period under review, “Extraordinary losses” solely consisted of “Provision of reserve for financial
instruments transaction liabilities” of ¥6 million (compared to ¥– million for the same period a year earlier).
(2) Quarterly overview of financial position(i) Current assets
At the end of the period under review, “Current assets” amounted to ¥60,041 million, an increase of ¥5,595
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥2,320 million in“Cash and deposits,” ¥2,004 million in “Cash segregated as deposits,” ¥1,662 million in “Advances paid,” ¥764
million in “Margin transaction assets,” and ¥179 million in “Cash paid for offering,” which were partially offset
by a decrease of ¥1,538 million in “Trading products.”(ii) Non-current assets
At the end of the period under review, “Non-current assets” amounted to ¥19,092 million, a decrease of ¥494
million from the end of the previous fiscal year. This was mainly attributable to decreases of ¥380 million in“Investment securities,” ¥60 million in “Long-term guarantee deposits,” and ¥36 million in “Property, plant andequipment.”(iii) Current liabilities
At the end of the period under review, “Current liabilities” amounted to ¥32,415 million, an increase of ¥6,553
million from the end of the previous fiscal year. This was mainly attributable to increases of 5,740 million in“Deposits received,” ¥2,256 million in “Borrowings secured by securities,” ¥471 million in “Provision for shareawards for employees,” and ¥41 million in “Guarantee deposits received,” which were partially offset bydecreases of ¥1,055 million in “Income tax payable,” ¥401 million in “Margin transaction liabilities,” ¥279
million in “Provision for bonus,” and ¥243 million in “Other current liabilities.”(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 ¥4,676 million, a decrease of ¥668 million from the end of the previous fiscal year. This was mainly
attributable to decreases of ¥373 million in “Provision for share awards for employees” due to a transfer tocurrent liabilities, ¥141 million in “Deferred tax liabilities,” ¥106 million in “Provision for retirement benefits,”and ¥56 million in “Other non-current liabilities,” which was partially offset by an increase of ¥6 million in“Reserve for financial instruments transaction liabilities.”(v) Net assets
At the end of the period under review, “Net assets” amounted to ¥42,042 million, a decrease of ¥784 million fromthe end of the previous fiscal year. This was mainly attributable to decreases of ¥1,287 million in “Other capitalsurplus,” ¥911 million in “Dividends of surplus,” and ¥248 million in “Valuation difference on available-for-salesecurities.” which were partially offset by increases of ¥850 million in “Profit,” and ¥811 million in “Treasury
shares.”(3) Outlook
We are engaged in the financial instruments business, and thus, its earnings could fluctuate greatly depending on thestock market performance and other factors. We therefore do not disclose earnings forecasts.
We will promptly disclose the preliminary results figures when the operating results for each quarter are roughly
estimated.

-3-

2. Quarterly non-consolidated financial statements and significant notes(1) Quarterly non-consolidated balance sheets
Previous fiscal year
(As of March 31, 2024)
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 margintransactions
Advances paid
Cash paid for offering
Short-term guarantee deposits
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-4-(Millions of yen)
Current quarter(As of June 30, 2024)

28,011
14,433
1,827
1,825
1
6
7,020
6,862

30,332
16,438
288
286
1
1
7,784
7,701

157

83

0
1,692
651
802

1,662
1,872
722
939

54,44660,041

3,742
1,824
1,917
187
15,656
14,950
678
45
(17)

3,706
1,815
1,891
169
15,215
14,569617
46(17)

19,586

19,092

74,033

79,134

Previous fiscal year
(As of March 31, 2024)
Liabilities
Current liabilities:
Margin transaction liabilities:
Borrowings on margin transactions
Cash received for securities lending on margin transactions
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
Provision for share awards for directors (and other officers)
Asset retirement obligations
Other current liabilities
Total current liabilities
Non-current liabilities:
Deferred tax liabilities
Provision for retirement benefits
Provision for share awards for employees
Provision for share awards for directors (and other officers)
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-5-(Millions of yen)
Current quarter(As of June 30, 2024)

1,013
717
296
856
856
17,758
417
2,750
1,243
659
–
23
7
39
1,092
25,861

612
395
216
3,112
3,112
23,498
459
2,750
188
379
23
494
7
40
849
32,415

2,493
1,937
373
21
305
117
5,249

2,352
1,831
–
23
306
60
4,575

94
94
31,205101
101
37,091

12,272

12,272

4,294
1,969
6,264

4,294
682
4,977

18,413
7,247
11,166
18,413(1,441)35,50918,352
7,247
11,105
18,352(630)
34,972

7,317
7,317
42,82774,0337,069
7,069
42,042
79,134

(2) Quarterly non-consolidated statements of income
For the three months ended June 30, 2023 and 2024

For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
Operating revenue
Commission received:
Brokerage commission
Commission for underwriting, secondary distribution and solicitation
for selling and others for professional investors
Fees for offering, secondary distribution and solicitation for selling andothers for professional investors
Other fees received
Net trading income
Financial revenue
Other
Total operating revenue(Millions of yen)
For the three months ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)

2,952
1,365

3,579
1,506

5

19

678

815

903
539

1,238
378

70
6

79
6

3,570

4,043

Financial expenses

14

12

Net operating revenue

3,555

4,031

266
1,721
307

282
1,890
359

438
89
85
52

461
90
87
54

2,963

3,226

Operating profit

592

805

Non-operating income:
Dividend income
Miscellaneous income

125
49

187
38

175

226

Miscellaneous loss

2

9

Total non-operating expenses

2

9

766

1,022

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

Total non-operating income
Non-operating expenses:

Ordinary profit
Extraordinary income:Reversal of reserve for financial instruments transaction liabilities

9–

Gain on sale of investment securities

224–

Total extraordinary income

233

–

–
6

6
–

Extraordinary losses:
Provision of reserve for financial instruments transaction liabilities
Impairment loss

6

6

Profit before income taxes

993

1,015

Income taxes - current
Income taxes - deferred

165
104

170
(5)

Total income taxes

270

164

Profit723

850

Total extraordinary losses-6-(3) Notes to non-consolidated financial statements
The quarterly non-consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1 ofStandards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. and accounting
principles generally accepted in Japan for quarterly financial statements, applying the provisions for reduced
disclosures as set forth in Article 4, Paragraph 2 of the Standards.
Segment information, etc.
The Company does not provide segment information because it has only a single business segment, which is theinvestment and financial services business.
Significant changes in shareholders’ equity
Based on the resolution at the Board of Directors’ meeting held on April 26, 2024, we acquired 897,600 shares oftreasury stock and cancelled 5,000,000 shares as of May 24, 2024.
As a result, treasury stock was ¥630 million at the end of the period under review, with an increase by ¥477 million
due to acquisition, partially offset by a decrease by ¥1,287 million due to cancellation. In addition, capital surplus was¥4,977 million at the end the period under review, decreasing by ¥1,287 million during the period.
Going concern assumption
Not applicableNon-consolidated statements of cash flow
Quarterly non-consolidated statements of cash flow for the period under review are not available. See below for the
information on depreciation (including amortization on intangible assets) for the period under review.

Depreciation

For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)¥89 million-7-

For the three months ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)¥90 million

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

Brokerage commission:
StocksBeneficiary certificates
Commission for underwriting, secondary
distribution and solicitation for selling andothers for professional investors:
Stocks
Bonds
Fees for offering, secondary distribution andsolicitation for selling and others for
professional investors
Other fees received
Total

For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
1,365[1,359][5]

For the three months ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
1,506[1,499]
[7]

5

19

356.3

[1]
[4]

[1]
[17]

154.5
402.8

678

815

120.1

903
2,952

1,238
3,579

137.1
121.2

For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
1,362
4
1,576
9
2,952

For the three months ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
1,502
19
2,053
4
3,579

For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
480
59
[(9)]
[69]
539

For the three months ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
317
60
[(3)]
[63]
378

Year-on-yearchange (%)
110.4
110.3
124.4

(ii) Commission by product(Millions of yen)

Stocks
Bonds
Beneficiary certificates
Other
Total

Year-on-yearchange (%)
110.3
410.5
130.2
53.3
121.2

(2) Net trading income(Millions of yen)

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

-8-

Year-on-yearchange (%)
66.1
101.9
–
91.8
70.0

(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, 2023
(From April 1, 2023
to June 30, 2023)
NumberAmountof shares
114
288,242[111][253,254][3][34,987]
97.3
87.9
0.05
0.04
12.16

(Millions of shares, Millions of yen)
For the three months ended
June 30, 2024
Year-on-year change (%)(From April 1, 2024
to June 30, 2024)
NumberNumberAmountAmountof sharesof shares
118
321,983
103.5
111.7
[118]
[297,426][105.8][117.4][0][24,557][21.7][70.2]
99.4
92.4
0.04
0.03
–
12.68

(4) Dealing volume of underwriting, public offering and secondary distribution
For the three months ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)(Thousands of shares, Millions of yen)
For the three months ended
June 30, 2024
Year-on-year change (%)(From April 1, 2024
to June 30, 2024)

Underwriting:Stock (Number of shares)
17
91
513.6
Stock (Amount)
20
73
354.3
Bond (Face value)
375
2,050
546.7
Beneficiary certificates (Amount)–––
Commercial paper & foreign securities–––(Face value)
Offering and secondary distribution
Stock (Number of shares)
16
50
315.4
Stock (Amount)
18
34
186.2
Bond (Face value)
375
2,096
558.9
Beneficiary certificates (Amount)
106,368
114,295
107.5
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-for-salesecurities
Reserve for financial instruments
transaction liabilities
Total
(B)
(C)

Previous fiscal year
(As of March 31, 2024)
34,597(Millions of yen)
Current quarter(As of June 30, 2024)
34,972

7,317

7,069

94

101

7,412
5,687

7,170
5,571

36,322
36,571(D)
Market risk
2,243
1,946
Counterparty risk
315
799
Risk items
Basic risk
2,735
2,966
Total
(E)
5,294
5,711
Capital adequacy ratio (%)(D) / (E) × 100
686.0
640.2
Note: Treasury shares, which were to be deducted from the calculation of the basic items, include the Company’s shares held by
Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for BBT and J-ESOP.

-9-(6) Quarterly trends of operating results(Millions of yen)Previous fiscal year

Current fiscal year

1st quarter(Apr. 1, 2023–
Jun. 30, 2023)

2nd quarter(Jul. 1, 2023–
Sep. 30, 2023)

3rd quarter(Oct. 1, 2023–
Dec. 31, 2023)

4th quarter(Jan. 1, 2024–
Mar. 31, 2024)

1st quarter(Apr. 1, 2024–
Jun. 30, 2024)

Commission received

2,952

3,051

2,910

3,860

3,579

Net trading income

539

294

204

431

378

Financial revenue

70

68

68

74

79

Other

6

6

6

6

6

3,570

3,420

3,190

4,373

4,043

Financial expenses

14

13

11

12

12

Net operating revenue

3,555

3,406

3,178

4,361

4,031

266

273

283

311

282

Personnel expenses

1,721

1,733

1,658

1,929

1,890

Real estate expenses

307

350

350

370

359

Office expenses

438

414

425

460

461

Depreciation

89

90

91

93

90

Taxes and dues

85

46

47

59

87

Other
Total selling, general and administrative
expenses

52

48

50

57

54

2,963

2,957

2,908

3,282

3,226

Operating profit

592

449

270

1,078

805

Non-operating income

175

59

144

46

226

Operating revenue:

Total operating revenue

Selling, general and administrative expenses:
Trading related expenses

Non-operating expenses
Ordinary profit

2

1

1

8

9

766

507

413

1,116

1,022

Extraordinary income:Reversal of reserve for financial instruments
transaction liabilities
Gain on sale of investment securities

9

3

2

(9)

–

224

–

–

404

–

Total extraordinary income

233

3

2

395

–

–

–

–

–

6

6

–

–

–

–

Extraordinary losses:
Provision of reserve for financial
instruments transaction liabilities
Impairment loss
Total extraordinary losses

6

–

–

–

6

Profit before income taxes

993

511

416

1,511

1,015

Income taxes - current

165

307

24

685

170

Income taxes - deferred

104

(118)

117

(189)

(5)

Total income taxes

270

189

141

496

164

Profit

723

322

274

1,015

850

- 10 -

Independent Auditor’s Interim Review Report on the Quarterly Non-consolidated Financial Statements
August 2, 2024

To the Board of Directors ofMito Securities Co., Ltd.
Deloitte Touche Tohmatsu LLC
Tokyo Office
Designated Limited
Liability Partner
Engagement Partner

CertifiedPublicAccountant

Tatsuya Hiraki

Designated Limited
Liability Partner
Engagement Partner

CertifiedPublicAccountant

Kenji Hatanaka

Auditor’s Conclusion
We have conducted an interim review of the quarterly non-consolidated financial statements of Mito Securities Co., Ltd.
for the first quarter (from April 1, 2024, to June 30, 2024) and the first three-month period (from April 1, 2024, to June30, 2024) of the 80th fiscal term from April 1, 2024 to March 31, 2025, included in the “Attached Materials” section of
the quarterly earnings report, namely, the quarterly non-consolidated balance sheets, quarterly non-consolidated
statements of income, and notes thereto.
Based on our interim review, nothing has come to our attention that causes us to believe that the above quarterly nonconsolidated financial statements are not prepared, in all material respects, in accordance with Article 4, Paragraph 1 ofStandards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. and accounting principles
generally accepted in Japan for quarterly financial statements, applying the provisions for reduced disclosures as set
forth in Article 4, Paragraph 2 of the Standards.
Basis for Auditor's Conclusion
We conducted our interim review in accordance with the interim review standards generally accepted in Japan. Our
responsibilities under the interim review standards are described in “Auditor’s Responsibilities in the Interim Review of
the Quarterly Non-consolidated Financial Statements.” Pursuant to the code of professional ethics in Japan, we are
independent of the Company and have fulfilled our other ethical responsibilities as an auditor. We believe that we haveobtained the evidence to form a basis for our conclusion.

Responsibilities of Management and the Audit and Supervisory Committee for the Quarterly Non-consolidated Financial
Statements
Management is responsible for the preparation of the quarterly non-consolidated financial statements in accordance with
Article 4, Paragraph 1 of Standards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc.
and accounting principles generally accepted in Japan for quarterly financial statements, applying the provisions for
reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards. This includes the designing and operation ofsuch internal controls as management determines is necessary to enable the preparation of quarterly non-consolidated
financial statements that are free of material misstatements, whether due to fraud or error.
In preparing the quarterly non-consolidated financial statements, management is responsible for evaluating whether it isappropriate to prepare the quarterly non-consolidated financial statements based on the going concern assumption, andfor disclosing matters related to going concern if required based on Article 4, Paragraph 1 of Standards for Preparationof Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. and accounting principles generally accepted inJapan for quarterly financial statements, applying the provisions for reduced disclosures as set forth in Article 4,
Paragraph 2 of the Standards.
The Audit and Supervisory Committee is responsible for supervising the execution of duties by Directors in the designingand operation of the financial reporting process.
- 11 -

Auditor’s Responsibilities in the Interim Review of the Quarterly Non-consolidated Financial Statements
Our responsibility is to express a conclusion on the quarterly non-consolidated financial statements in our interim review
report from an independent standpoint based on our interim review.
In accordance with the interim review standards generally accepted in Japan, we perform the following by exercisingprofessional judgment and maintaining professional skepticism throughout the interim review process:•We primarily make inquiries of management, persons responsible for financial and accounting matters, and others,
and perform analytical procedures and other interim review procedures. The procedure for interim reviews is alimited procedure compared to the procedure for annual financial statements performed in accordance with theauditing standards generally accepted in Japan.

•

If we determine that a material uncertainty exists related to events or conditions that may cast significant doubt on
the going concern assumption, we will conclude, based on the evidence obtained, whether nothing has come to ourattention that causes us to believe that the quarterly non-consolidated financial statements are not prepared inaccordance with Article 4, Paragraph 1 of Standards for Preparation of Quarterly Financial Statements of the Tokyo
Stock Exchange, Inc. and accounting principles generally accepted in Japan for quarterly financial statements,
applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards. If wedetermine that a material uncertainty exists related to the going concern assumption, we are required to draw
attention in the interim review report to the notes to the quarterly non-consolidated financial statements or, if such
notes to the quarterly non-consolidated financial statements regarding material uncertainty are inadequate, toexpress a qualified or negative conclusion on the quarterly non-consolidated financial statements. Our conclusion
is based on the evidence obtained up to the date of the interim review report. However, future events or conditions
may cause the Company to cease to continue as a going concern.

•

We evaluate whether nothing has come to our attention that causes us to believe that the presentation of and notes
to the quarterly non-consolidated financial statements are not prepared, in all material respects, in accordance with
Article 4, Paragraph 1 of Standards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange,
Inc. and accounting principles generally accepted in Japan for quarterly financial statements, applying the provisions
for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards.

We report to the Audit and Supervisory Committee on the planned scope and timing of the interim review and significant
findings from the interim review.
We report to the Audit and Supervisory Committee on our compliance with the code of professional ethics in Japan
regarding independence, matters that may reasonably be thought to bear on the auditor’s independence, and whereapplicable, details of the measures taken to eliminate impediments or safeguards adopted to mitigate impediments to an
acceptable level.

Conflicts of Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under
the provisions of the Certified Public Accountants Act.

Notes 1. The original copy of the above interim review report is retained separately by the Company (the company
disclosing the quarterly earnings report).
2. XBRL data and HTML data are not included within the scope of the interim review.

- 12 -