Annual Report 2023
Corporate Proﬁle 2024

Financial Highlights

Operating Revenue

4,586 million yen
Other OperatingRevenue

13%

YoY

132％

Ordinary Income

1,236 million yen

YoY

212％

Development of Ordinary Income

Commissions

11%(Millions of yen)

1600
1400
1200

Financial Revenue

26%

Proﬁt Contribution

Gains on Stock Trading

33%

1000
800
600
400
2000

（Fiscal Year）

Gains on Bond Trading17%

All business segments met their targets, delivering arobust performance and cultivating a well-balanced
revenue portfolio. Additionally, all new businessventures have reached proﬁtability.

Ordinary income has more than doubled, with ordinary
income per capita surpassing 11 million yen, reﬂecting anotable increase in productivity. Our business model
has proven to be resilient in spite of market conditions
as we continue to drive proﬁtability.

Net Operating Revenue

4,338 million yen

YoY

Assets Under Custody656.7 billion yen

131％

Developement of Net Operating Revenue

YoY

163％

Development of Assets Under Custody(Millions of yen)

6000

7000005000

6000005000004000

4000003000

3000002000

200000100000

1000

00（Fiscal Year）-1000

StocksBrokerage Commisions

Oﬀering Commissions

Others Commisions

Financial Revenue

Other Operating Revenue

Financial Expenses

Gains on Stock Trading

Gains on Bond Trading

Bonds

Beneﬁciary Certiﬁcate

TK/NK etc

OthersOther Trading

We established a minimum target of 3 billion yen in net
operating revenue for each ﬁscal year. In FY 2023, we
surpassed the 4 billion yen mark, notably achieving thismilestone with little reliance on dealing revenue.

Assets under custody increased by 253.8 billion yen.
Our continued focus on the HNWI has led to a risein assets under custody per client to 172 million yen,achieving the highest level in the industry.

Annual Report 2023

2Financial Report for FY 2023
Commissions

Other Operating Revenues

Total commissions amounted to 519 million yen (YoY 127.6%).
The breakdown is as follows:

Other operating revenues amounted to 582 million yen (YoY137.5%). This growth was driven by the steady contribution ofrevenues from TOB agent services and M&A advisory services,
as well as a significant boost in real estate-related revenues as
our real estate securitization business gained momentum.
Additionally, advisory fees from our newly established IPO
Department showed consistent growth.
It deserves to be mentioned that we served as the TOB agent
for NIDEC Corporation in its tender offer for TAKISAWA
without prior consent. This transaction was a pivotal case that
contributed to the governance reform of listed Japanesecompanies. We take pride in facilitating this significant
transformation, providing TOB agent services for investors
launching TOB without prior consent since the era it was called
hostile TOB.

Brokerage Commission:
Brokerage commissions totalled 358 million yen (YoY 179.8%),
driven by a booming stock market in the fourth quarter, withthe Nikkei 225 Stock Average reaching an all-time high.
The average brokerage commission rate for Japanese stocks
declined to approximately 4.5 basis points, attributed to anincrease in transactions via Direct Market Access (DMA).

Underwriting Commissions:
Underwriting commissions amounted to 9 million yen (YoY95.9%), primarily due to the underwriting of our in-houseproducts.

Offering Commissions:
To minimize the costs to investors associated with offeringcommissions on mutual funds, we have been actively reducing
these fees. Consequently, offering commissions were halved to45 million yen (YoY 50.2%). We consider this a positive
outcome of our efforts to reform our earnings structure.

Other Commissions:
Other commissions totaled 105 million yen (YoY 99.0%),
largely derived from management fees for mutual funds.

Trading Profit/Loss
Total trading profits amounted to 2,308 million yen (YoY 132.5% ).
The breakdown is as follows:

Gains on Stock Trading:Despite a slow start in the first three quarters, the fourth quarter
witnessed a substantial increase in profits from the dealing division,
making the most of the surge in Japanese stocks. This resulted instock trading revenues of 1,425 million yen (YoY 131.2%).

Gains on Bond Trading:
Our bond trading operations comprise both consumer (B2C) andbusiness (B2B) clients, primarily focusing on U.S. Treasury
securities. Bond trading revenues surged to 801 million yen(YoY 122.8%) driven by swelling demand for U.S.
dollar-denominated bonds amid high U.S. interest rates. As aresult, the total value of bonds under our custody grew byapproximately 40 billion yen during the fiscal year.

Financial Revenue
Financial revenue reached 1,175 million yen (YoY 131.6%).
Interest income generated from margin transactions and ourmoney lending activities contributed to the overall increase infinancial revenue. The cancellation fees from terminating asubstantial factoring transaction brought about a one-time increase
in income which boosted our revenues.

3

Annual Report 2023

Financial Expenses
Financial expenses totaled 247 million yen (YoY 155.1%). This
increase was primarily due to increased borrowing costs for
expanding our margin transactions and money lending businessand increased borrowing fees related to stock lending transactions.

As a result of the aforementioned factors, net operating
revenue for the period amounted to 4,338 million yen(YoY 131.2%).

Selling, General, and Administrative Expenses
Total selling, general, and administrative expenses reached 3,279
million yen (YoY 114.6%). The expenses for vendors increased
by a sharp rise in stock trading volume and a soaring deposit
balance of bonds. Personnel expenses also increased due to ahigher provision for performance-linked bonuses.

Consequently, operating income for the period was 1,059
million yen (YoY 237.8%).
With the addition of 178 million yen in dividends fromsubsidiaries and investment income as non-operating
income, offset by 1 million yen in non-operating
expenses, ordinary income amounted to 1,236 millionyen (YoY 212.1%).
An extraordinary loss due to the drawdown on
investments in subsidiaries resulted in income before
income taxes of 1,152 million yen (YoY 206.1%).
Net income for the period marked 802 million yen (YoY214.8%).

Proﬁt & Loss Statement（Unit: Millions of yen）

Accounts

March 2024

Operating revenue
Commisions

March 2023
4,5863,465

519

407

358

199

Underwriting, sales, solicitation of sales for speciﬁc investors, etc.

910Oﬀering, Distribution, solicitation of sales for speciﬁc investors, etc.

45

91

Others105

106

Brokerage

Trading proﬁt/loss

2,308

1,741

Financial revenue

1,175

892

Other operaing revenue

582

423

Financial expenses

247

159

Net operating revenue

4,338

3,305

Selling, general and administrative expenses

3,279

2,860

Transaction related expenses

448

346

Personnel expenses

2,183

2,002

Real estate related expenses

56

52

Oﬃce expenses

391

294

Depreciation and amortization

3029

Taxes and public dues

153

119

Provision for allowance for doubtful accounts

3―Others

12111,059

445

177

137

Ordinary income

1,236

582

Extraordinary loss

83

231,152

559

Operating income
Non-operating income/loss

Income before income taxes
Corporate, inhabitant and enterprise taxes

356

Income taxes deferred△5Net income

290
350
802

△105185373

Annual Report 2023

4

Financial Overview
Current Assets

Current Liabilities

Total current assets at the end of FY 2023 were 43,059 million
yen (YoY 125.1%). Key fluctuations include:
Deposits increased to 7,890 million yen (YoY 150.5%) due to arise in deposits received.
Margin transaction assets surged to 11,338 million yen (YoY629.3%) driven by an increase in margin transactions.
Short-term loans receivable grew to 14,322 million yen (YoY157.7%) due to an expanded balance of loans secured bysecurities.
Account receivables decreased to 1,625 million yen (YoY 19.3%)
following the cancellation of a significant factoring contract.

Total current liabilities at the end of FY 2023 amounted to35,405 million yen (YoY 127.3%). Key fluctuations include:
Trading products increased to 1,342 million yen (YoY 156.2%)
due to the expansion of short positions in proprietary trading.
Margin transaction liabilities and guarantee deposits receivedrose to 7,734 million yen (YoY 195.9%) and 2,468 million yen(YoY 210.9%), respectively, due to an increase in the balance ofmargin transactions.
Short-term borrowings increased to 15,813 million yen (YoY119.8%), driven by the expanded balance of loans secured bysecurities.

Non-current Assets

Non-current Liabilities

Total fixed assets at the end of the period amounted to 1,529
million yen (YoY 111.3%). Key fluctuations include:
Investments and other assets increased by 177 million yen due to
new investments in stocks and silent partnerships, despite theliquidation and the drawdown of subsidiaries’ stocks and theredemption of investments in silent partnerships.

Total long-term liabilities at the end of the period were 891
million yen (YoY 206.0%). Key fluctuations include:

As a result, total assets at the end of the period stood at
44,589 million yen (YoY 124.5%).

Corporate bonds increased to 700 million yen (YoY 233.3%)
due to subordinated bonds issued to affiliated companies (200million yen) and bonds issued to regional banks (200 million yen).
Long-term loans payable reached 70 million yen (YoY 201.4%)
due to new transactions with regional banks.
Accrued retirement benefits and directors' retirement benefits
also increased.

As a result, total liabilities at the end of the periodamounted to 36,358 million yen (YoY 128.5%).

Net Assets
Total net assets at the end of the period reached a record high of
8,230 million yen (YoY 109.7%).

Consequently, total liabilities and net assets for the periodamounted to 44,589 million yen (YoY 124.5%).

5

Annual Report 2023

Balance Sheet（Unit: Millions of yen）
Assets
Accounts

Current assets

Liabilities

March 2024

43,059Accounts

March 2023

34,418 Current liabilities

March 2024

March 2023

35,40527,802

Cash and deposits

2,279

1,980

Trading products

1,342

859

Deposits

7,890

5,240

Margin transaction liabilities

7,7343,946

Trading products

3,861

3,567

Deposits received

6,289

4,827

Margin transaction assets

11,338

1,801

Short-term loans payable

15,813

13,195

Short-term guarantee deposits

1,463

4,291

Current portion of bonds

―

1,100

Short-term loans receivable

14,322

9,077

Other current liabilities

4,225

3,874

Monetary receivables

1,625

8,395

Other current assets

302

84 Non-current liabilities

891

432

Bonds

700

300

Long-term loans payable

70

35

Other non-current liabilities

120

97

Allowance for doubtful accounts

Non-current assets△ 231,529

△ 20

1,373

Property, plant and equipment

96

106 Special legal reserves

6153

Intangible assets

3243

Reserve for ﬁnancial instruments transaction liabilities

6153

1,400

1,223

Total liabilities

36,35828,289

8,230

7,502

500

500

7,730

7,002

Total net assets

8,230

7,502

Total liabilities and net assets

44,58935,791

Investments and other assets

Net assets

Shareholders' equity
CapitalRetained earnings

Total assets

44,58935,791

Annual Report 2023

6Key Results - April 2023 to June 2024

TOB Agent
We have been appointed by NIDECCorporation to act as tender offer agent for thetender offer for the common shares ofTAKISAWA.

We have been appointed by an individual
investor to act as tender offer agent for thetender offer for the common shares ofConvano.

We have been appointed by Shida Holdings
Corporation to act as tender offer agent for thetender offer for the common shares ofSIDACS.

We have been appointed by Leda Group
Holdings to act as tender offer agent for thetender offer for the common shares of Curtis
Holdings.

We have been appointed by Ferrotec Holdings
Corporation to act as tender offer agent for thetender offer for the common shares of Oizumi
Manufacturing Co.

We have been appointed by Inayoshi CapitalPartners to act as tender offer agent for thetender offer for the common shares of Twenty
Four Seven.

We have been appointed by Azabudai No.1
Limited Liability Partnership to act as tender
offer agent for the tender offer for the commonshares of Horii Food Service.

We have been appointed by Hebara Holdco 2
Liability Partnership to act as tender offer
agent for the tender offer for the commonshares of Sun Electronics Corporation.

June 2024
7

Annual Report 2023

April 2023
M&A Financial Advisor
We have been appointed as the financial advisor
for 15 M&A transactions including cross-border
M&A.

Finance
We purchased Happiness and Day’s 11th and 12thseries of stock options through a third-party
allotment.

Real Estate Securitization
We supported the securitizations of 15 realestates.

IPO Support Services
We attained qualification as a J-Adviser for
TOKYO PRO Market, a stock market for
professional investors.

We have entered into advisory contracts with
14 companies seeking to list on the Tokyo
Stock Exchange. (As of March 31, 2024)

A representative of Mita Global Advisory, ouraffiliate in Singapore, spoke at a JPX
co-sponsored seminar held in Ho Chi Minh City,
to promote TSE listing to Vietnamese companies.

Investment Management
Mita Capital, a subsidiary in Singapore, haslaunched MS Japan Funds, a fund of hedge
funds focusing on Japanese hedge funds.

Mita Capital launched the MS Global MacroFund, which invests in macro-managed hedge
funds.

Mita Capital's portfolio manager was afeatured speaker at a JPX-sponsored seminarin Bangkok.

Annual Report 2023

8Mission

Pursuing the unlimited possibilities of the securities industry
and continuing to create new added value

Business Principles

Integrity

Client First

Win-WinWe always face our work with integrity andhonesty.

We listen seriously to our customers and put
ourselves in their shoes.

We aim to make a deal that is a win-win
relationship between you and us.

Compliance

Value Added

Teamwork

We consider compliance to be a natural andabsolute obligation.

We strive to provide high added value
to our customers.

Our diverse talent pool creates mixed
strengths and contributes to achieving ourclients' goals at a high level.

Adaptability & Creativity

Commitment

Think Global

We adapt to changing times and work withcreativity.

We will work with a sense of responsibility
throughout the entire process.

We have a global perspective and seek out
the best opportunities from around the world.

Corporate Profile

10

Organization Chart
Wealth Management Division

IFA Business Dept.

Equity Division

Information Technology Committee

Fixed Income Division

Compliance Committee

Equity Dealing Division
Board of Directors

Investment Banking Division

President & CEO

IPO Dept.
Corporate Auditor

Audit Dept.

Real Estate Dept.

Real Estate Division

Real Estate Securitization Business Dept.
Operations Dept.

Group Companies
Mita CapitalCompliance Dept.

Control Division

Mita Global Advisory

Underwriting Examination Dept.

EJC Group（EJC,EJA,ES,EM）

Human Resources & Administration Dept.

Finance Division

Financial Reporting Dept.

Information Technology Division
Tax Advisory OfficeCompliance
We have strengthened our corporate governance, with compliance as an integral function of our business.

Committee

・Compliance Committee
・IT Committee

Head of Internal Control System

Board of Directors
Instructions for Improvement to Enhance
the Quality of Internal Control System

Instructions for
Problem Solving

Check for Compliance System andInternal Control System

Business Unit
Infrastructure UnitReporting Problems ofInternal Control System

ComplianceDepartment

Pointing Out Problems ofInternal Control System

Audit Department
Check and Assessment of Compliance System,Risk Controls,and Internal Controls/Demands for Improvement of Problems

Check for Risk Controland Internal Controls

Audit
Governance Check

11 Corporate Profile

Corporate Auditor

External Auditor

Audit Report