Annual Report 2021
Corporate Proﬁle 2022

CO.,LTD.

A Message from the CEO

Annual Report

1More than two years have passed since the covid-19 outbreak was first reported. While central banks
around the world cut interest rates and embarked on unprecedented quantitative easing to mitigate thedamage to economies, governments have been providing tremendous amount of emergency funding.
As a result, the global money glut caused prices of stocks, bonds, real estate, commodities, crypto
assets etc. to soar, and widening the gap between the haves and have-nots. On the other hand, pricesof consumer goods had remained stable. This is the effect of globalization, which progressed since theend of the Cold War, and the world has cooperated to grow economies in a quite rational way.
However, the trend began to unwind due to disruptions in the supply chain, historically high inflation,monetary tightening by the FRB, Russia’s aggression against Ukraine, and soaring energy prices.
Stocks, especially growth stocks, have plunged since last November. While prices of bonds andcrypto assets have also sank, commodity prices have skyrocketed, which has triggered inflation
around the world together with the disruption of the supply chain. The buoyant trend of booming
economy, disinflation and asset inflation have inverted to a growing concern about stagflation andasset deflation.

Mita Securities Co.
President and C.E.O Kunihiro Mita

In such an environment, we were forced to make a1difficult management decision. The dealing division, which had generated significant earnings in the

post-Covid19 pandemic bubble market, was unable to adapt to the rapid and extreme changes in market conditions, resulting in a nearly 80% YoY decline
in the revenue. Bond trading also grappled with the incremental bond yields. The clash in stock markets created headwinds for the wealth managementbusiness. On the other hand, the investment banking business continued to perform very well, especially in TOB agent services. The money lending
business steadily increased its balance.Thanks to the diversification effect of our businesses and services, we posted a profit after tax in this fiscal year
which is our 19th consecutive year in black, but our profit level fell to one-quarter of the previous year's one. We believe that the unwinding in the market
could trigger a massive financial crisis similar to the Lehman Shock, and we will continue to manage our business with a high level of vigilance.
And finally, I would like to announce our new projects started during this fiscal year.Our group launched MS Star Funds, a fund of hedge funds managed
by Mita Capital Pte. Ltd.. The fund's performance has remained in positive territory as of the end of May 2022 despite the turbulence in the stock market
that has been continuing since its launch. We try to nurture this fund which can bring a stable mid- to long-term returns for investors.The other project isthat we started IPO business to support venture companies seeking IPOs. We have hired three experienced personnel and established an IPO Department
anew. In December, we were recognized as a candidate securities company for an IPO lead managing underwriter by the Tokyo Stock Exchange. We
promise to pave the way for a new era of IPO practice in Japan.
Of the 285 Japanese securities companies which existed in 1995, approximately 230 have since disappeared. We are proud to have retained our company
name since our foundation in 1949 and developed our business continuously. We are sincerely grateful to our clients for supporting us through theeconomic turbulence and excessive competition.We expect this harsh business environment to continue for the time being, but we believe that if we
accurately understand our clients’ needs and perform work with integrity, we can definitely find a way to survive.
Lastly, we are determined to do our best to create values to our clients, and we sincerely ask for your continued patronage.

We are committed to a thorough disclosure policy in order to strengthen the relationship with our clients and business partners.
"The Annual Report/Corporate Profile" is prepared for the purpose of informing you of our business performance, financial
condition, and business activities each fiscal year.

2

Annual Report

Financial Report FY2021

Income Statement

Annual Report（Unit: Millions of Yen）

Business Report

Amounts

Accounts
FY2021

During this fiscal year, The Japanese economy was stumbled by the issuance of the state of emergency and quasi emergency measures which aim to prevent the
spread of new strains of corona viruses, such as the delta and omicron variants. However, the economy barely avoided falling into recession thanks to the fiscal
and monetary policy support. Turning to the global economy, the U.S.-China confrontation, the logistic disruption, and factory closures due to the Covid outbreak

Operating Revenue

caused the supply chain disruptions globally, which accelerated inflation combined with soaring resource prices as well as supply shortages. Inflation, especially

Commissions

in Europe and the U.S., reached its highest level since the early 1980s, and when the U.S. Federal Reserve announced that it would change its stances of monetary

Brokerage

FY2020
2,658

5,330

419

504

262

274

Underwriting/Distribution/Solicitations for sales to specified investors

917

to the 30,000 yen mark, fell below 25,000 yen, and the TSE Mothers Index plunged nearly 40% from its November peak.

Offering/ Distribution/ Solicitations for sales to specified investors

61

140

In such an environment, our company's management also had a very difficult time, especially in the latter half of this fiscal year.Stock trading revenues, which

Others84

72

policy, stock prices, especially growth stocks, severely plunged. After the Russian war against Ukraine broke out, inflation is becoming out of control all over
the world, leaving the capital markets in an unstable situation. Influenced by this external environment, the Nikkei 225 Stock Average, which had once recovered

reached a record high of approximately 3.4 billion yen in the previous fiscal year, declined by approximately 80% from the previous year. The sharp decline instock prices also dampened investors' appetite for investment, and commissions fell approximately 17% YoY.On the other hand, the investment banking businessTrading profit

performed very well, with 9 TOB agent assignments and the purchase of warrants from 3 companies. The factoring business also remained strong, and financial
revenue increased approximately 20%.However, this was not enough to compensate for the sluggishness of the dealing business, and net operating revenue fell
below 3 billion yen for the first time in four fiscal years, and both ordinary income and net income declined by more than 70% YoY.Lastly, the Singapore Branch,

1,088

3,737

Financial revenue

848

709

Other operating revenue

301

379

which was opened in 2014 as a base for our dealing business, was closed during this fiscal year. We recorded a total of approximately 4.7 billion yen in revenue

Financial Expenses

189

183

since the inception of the branch.

Net Operating Income

2,468

5,147

Selling, General and Administrative Expenses

2,289

4,049

Commissions

Financial Revenue

Business related expenses

Commissions totaled 419M yen (83.0% YoY). The breakdown is asfollows.

Financial revenue totaled 848M yen (119.6% YoY).
Financial revenue from margin transactions and factoring commissions
increased.

Real estate related expenses

Brokerage commissions

Brokerage commissions totaled 262M yen (95.8% YoY). Although
brokerage commission income from foreign stocks increased due to thestrong U.S. stock market, the sharp decline in stock prices in the latter halfof this fiscal year caused a decline in transactions, resulting in a decrease
in revenues.

Underwriting commissions

Underwriting commissions amounted to 9M yen (58.1% YoY) as a resultof underwriting the public offering by Japan Post and in-house products.

351

348

1,481

3,068

57

79

Office expenses

263

292

Depreciation expenses

32

34

Tax and dues

95

212

Other Operating Revenue

Provision of allowance for doubtful accounts―

5

Other operating revenue totaled 301M yen (79.5% YoY).
The number of TOB agent business remained at a high level, and we
clinched 9 deals in this fiscal year.

Others7

8

Offering commissions

Offering commissions declined to 61M yen (43.9% YoY). This stagnant
result was mainly attributed that we provided MS Star Funds on a no-load(no commission) basis. But we believe this was an unavoidable decision
to establish the customer-oriented business. We will try not to rely on
offering commissions which sometimes collide with the clients’ interest.

Other commissions

Other commissions topped 84M yen (116.5% YoY). The increase was due
to an increase in the AUM of mutual funds and management fees forstanding proxy accounts.

Financial Expenses
Financial expenses totaled 189M yen (103.4% YoY).
Financial expenses increased in line with the increase in financial revenue.
As a result of the above, net operating revenue for the current fiscal
year amounted to 2,468M yen (47.9% YoY).

Trading Profit/Loss

Selling, General and Administrative Expenses

Total trading profit amounted to 1,088M yen (29.1% YoY).
Stock trading profit was 722M yen (21.3% YoY), a significant drop fromthe record high of the previous fiscal year. Amidst the dramatic sentimentchange in the growth stocks, our traders couldn’t adopt themselves to thechange of market sentiment.
Bond trading profit amounted to 327M yen (100.8% YoY). Trading
volume was lackluster as U.S. long-term bond prices continued to fall.
Other trading income was 38M yen (176.4% YoY).

Total selling, general and administrative expenses amounted to 2,289M
yen (56.5% YoY).
Labor cost decreased significantly due to a large decrease in compensation
for dealers and allowance for bonuses linked to business performance.
Taxes and public dues were also reduced by half.
As a result, operating income for the fiscal year was 178M yen (16.2%
YoY). Investment income of 152M yen was posted as non-operating
income, bringing ordinary income to 356M yen (30.5% YoY). Income
before income taxes amounted to 343M yen (29.6% YoY), and net
income amounted to 199M yen (25.4% YoY).

Personnel expenses

1

Operating Profit

178

1,097

Non-operating Income and Loss

178

67

Ordinary Profit

356

1,165

Extraordinary Loss

12

4

Provision of financial products transaction liabilities reserve

12

343

Income Before Income Taxes
Income taxes
Income taxes adjustment
Net Income

4

4
140

1,160
465

144

199

(86)

379

781

3

4

Balance Sheet

Annual Report

Current Assets

Current Liabilities

Total current assets at the end of this fiscal year were 24,641M yen (88.8%
YoY).
Trading assets totaled 1,809M yen (78.5% YoY) due to a decrease in thenumber of stocks held for proprietary trading. Margin trading assets also
declined to 1,425M yen (48.5% YoY) due to a decrease in the margin
trading balance.
Short-term loans receivable decreased to 4,668M yen (34.4% YoY) due toprogress in loan collections, while medical receivables increased to7,395M yen (23.4 times YoY) due to an increase in factoring balances.

Total current liabilities at the end of this fiscal year amounted to 17,635M
yen(82.2% YoY).Deposits received increased to 3,970M yen (167.0%
YoY) due to the redemption of bonds at the end of this term.
Short-term borrowings decreased to 8,451M yen (76.3% YoY) due to adecrease in the amount of back-financing as a result of loan repayments.
The redemption of bonds scheduled within one year (1,000M yen, of
which 500M yen were subordinated bonds) downed to zero. Margintransaction liabilities decreased to 1,380M yen (48.6% YoY) due to adecrease in margin transactions. Accrued compensation and allowance forbonuses also decreased due to poor performance.

Fixed Assets

Balance Sheets For the year ended on March 31, 2022

Annual Report（Unit: Millions of Yen）

AssetsLiabilities
FY2021

FY202017,63521,437

Trading products

308

133

3,260

Trade date accrual

537

―

1,809

2,303

Liabilities for margin transactions

1,380

2,836

―

553

Deposits received

3,970

2,377

Assets for margin transactions

1,425

2,937

Guarantee deposits received

2,439

2,379

Short-term guarantee deposits

3,430

2,992

Short-term debts

8,451

11,070

Short-term loans receivables

4,668

13,556

Bonds to be redeemed within 1 year

―

1,000

Net Assets

Accounts receivable-monetary claims

7,395

316

Accounts payable-other

314

703

Total net assets as of the end of this fiscal year amounted to 7,682M yen (99.5% YoY).
Retained earnings decreased slightly because the total amount of the canceled treasury stock and dividends exceeded net income.

Other current assets

324

162

Income taxes payable1484

Allowance for doubtful accounts

(15)

(19)

Provision for bonuses

155

350

Other current liabilities

74

102

Accounts

FY2021

FY2020Current Assets

24,641

27,734Current Liabilities

Cash and deposits

2,582

1,670

Segregated cash and deposits

3,020

Long-term Liabilities

Trading products

Total fixed assets at the end of this fiscal year amounted to 1,746M yen(83.9% YoY).
Long-term loans receivable and deferred tax assets decreased due torepayment of loans and a decrease in deferred tax assets.

Total long-term liabilities at the end of this fiscal year amounted to
1,029M yen (163.3% YoY).
Corporate bonds increased to 900M yen (225% YoY) due to the issuanceof 500 million yen in new subordinated bonds.

Trade date accrual

As a result, total assets at the end of the period were 26,387M yen(88.5% YoY).

As a result, total liabilities at the end of this fiscal year amounted to
18,705M yen (84.6% YoY).

Financial Highlights

1,746

2,079

Fixed Liabilities

1,029

630

Tangible fixed assets

146

160

Subordinated bond

900

400

Intangible fixed assets

38

23

Long-term debts

55

179

1,560

1,896

Other noncurrent liabilities

74

51

Investment securities

308

294

Stocks of subsidiaries and affiliates

70

70

Reserves Under the Special Laws

40

27

2021

Investments in capital of subsidiaries and affiliates

777

872

Reserve for financial products transaction liabilities

40

27

Brokerage Commission
Underwriting Commissions
Offering Commissions
Other Fees and Commissions
Gains/losses on stock transactions
Gains/losses on bond transactions
financial revenue
Other operating revenues

Long-term loans receivables

302

414

Total Liabilities

18,70522,096

Deferred tax assets

58

198

Other investments

43

45

Shareholders' Equity

Allowance for doubtful accounts

00Capital stock

Fixed Assets

Change in Operating Results(unit:millions of yen)

1,600

6,000

Changes in Operating Revenues(unit:millions of yen)

6,000
5,000

1,200

4,500

800

3,000

400

1,500

Investments and other assets

4,000
3,000
2,000
1,000
0
2017

0

2017

2018

Ordinary Profit

2019
Net Income

Change in Assets Under Custody

2020

2021

Net Operating Income(unit:millions of yen)

300,000

2018

2019

2020

Change in Capital Adequacy Ratio(Unit: %)

500
400
300
200

Total Assets

100
0

2017

2018
Stocks

2019

2020

Bonds
Beneficiary Certificates
Partnership Interests
Others

2021

Net Assets

7,682

7,717

500

500

7,182

7,217

Total Net Assets

7,682

7,717

Total Liabilities and Net Assets

26,387

29,813Retained earnings

200,000

100,000

Accounts

0
2017

2018

2019

2020

2021

26,387

29,8135

6Company Executives

Corporate Profile

Mission / Our Values / Business Principles

Corporate Profile

Mission(from June 2022)

Pursue the infinite possibilities of the securities industry
and keep on creating new value added.
President & CEO

Board Director

Board Director

Board Director

Kunihiro Mita

Tatehito Kadokura

Tsukasa Nakamoto

Tadashi Chaki

1994 Graduated from the Faculty of Law
at Sophia University
1994 Joined Nikko Securities(current SMBC Nikko Securities)
1998 Joined Mita Securities
2001 President & CEO of the Company

1991 Graduated from the Faculty of Economics
at Chuo University
1991 Joined Nikko Securities(currently SMBC Nikko Securities)
2002 Joined Japan Global Securities(currently Naito Securities)
2004 Joined Mita Securities
2009 Board Director of the Company

1998 Graduated from the Faculty of Computer Scienceat University of California
1998 Joined Atsugi Information System
2002 Joined United World Securities
2004 Joined Societe General Securities
2005 Joined Mita Securities
2017 Board Director of the Company

1992 Graduated from the Faculty of Commerceat Waseda University
1992 Joined Nomura Securities
2008 Joined Mita Securities
2018 Board Director of the Company

Uniqueness

Professionalism

We aim to develop
and provide products
and services that leverage
our uniqueness.

Collaboration

We believe that a high level ofprofessionalism is the sourceof high added value,
and we strive to hire
and train professionals.

We eliminate vertical divisions
within the organizationand provide a collective strengthof our group to our clients

Our Values
Board Director

Board Director

Corporate Auditor

Integrity

International

We pursue fair business practices
with integrity to our customers.

We have an international perspective
and seek opportunities
to create added value
in the entire globe.

Corporate Auditor

Tatsuya Otsuki

Takehiro Mishiri

Yoshinobu Fujimoto

Yukihiro Shimizu

1991 Graduated from the Faculty of Commerce
at Doshisha University
1991 Joined Fuji Bank
(currently Mizuho Bank)
2000 Joined HSBC
2005 Joined Deutsche Bank
2006 Joined Capital Partners Securities
2016 Joined Mita Securities
2020 Board Director of the Company

2002 Graduated from Faculty of Law,
the University of Tokyo
2008 Admitted as a Attorney-at-Law in Japan
Joined Sidley Austin Nishikawa Foreign Law Joint Enterprise2009 Joined Kawashima Law Office2011 Served as Securities and Exchange Inspector,
the Kanto Local Finance Bureau of the Ministry of Finance2014 Readmitted as a Attorney-at-Law in Japan
Joined Nomura Securities Co., Ltd.
2017 Joined Morgan, Lewis & Bockius Law Offices
2019 Joined Mita Securities Co., Ltd.
2021 Board Director of the Company

1989 Graduated from the Faculty of Law
at Waseda University
1991 Registered with the Second Tokyo Bar Association
1991 Joined Asahi Koma Law Office(currently Nishimura & Asahi LPC)
1995 Graduated from University of Chicago Law School (LL.M.)
1996 Registered with the NY state Bar Association
2008 Company auditor of Mita Securities(Currently he is Partner of Nishimura & Asahi LPC.)

1995 Graduated from the Faculty of Engineering
at Hokkaido University
1995 Joined Hokkaido Takushoku Bank
1998 Joined IBJ Securities(currently Mizuho Securities)
2000 Joined Nikko Solomon Smith Barney(currently City Group Securities)
2005 Joined Livedoor
2006 Vice President of Livedoor
Chairman of Kazaka Securities(currently Naito Securities)
President of Kazaka Financial Group
Executive Director of Cecile
Executive Director of Media Exchange
2008 Joined Mita Securities as Executive Director
2013 Company auditor of the Company

Flexibility
We do not ask"Why can't we do it?"but "How can we do it?

Business Principles

Yoshiki Iida

Managing Director

Keisuke Tomoyori

Managing Director

Yuji Isoda

Masahiro Fuse

2003 Graduated from the Faculty of Businessat Toyo University
2003 Joined Okasan Securities
2006 Joined Japan M&A Management
2007 Joined Mita Securities

2002 Graduated from the Faculty of Economics
at Musashi University
2006 Joined Nikko Cordial Securities
2009 Joined Mita Securities

1990 Graduated from the Faculty of Education
at Nagasaki University
1990 Joined Yamaichi Securities
2000 Joined Merrill Lynch Japan Securities(currently BofA Securities Japan)
2002 Joined Maeda Securities(currently FFG Securities)
2010 Joined Iizuka nakagawa securities(currently Nakagawa Securities Advisors)
2013 Joined Capital Partners Securities
2016 Joined Mita Securities

1990 Graduated from the Faculty of Political Science and Economics
at Waseda University
1990 Joined Sumitomo 3M Limited
1995 Joined Daiichi Real Estate Appraisal Co.,Ltd
2000 Joined Ikoma CB Richard Ellis
2005 Joined Secured Capital Japan(currently PAG Investment Management)
2007 Joined ING Real Estate Investment Management(currently CBRE Global Investors)
2010 Joined RPA
2011 Joined Hospitality Partners Group
2016 Joined CBRE2018 Joined Colliers International Japan
2019 Joined Mita Securities

Managing Director

Integrity

Client First

Win-Win

We will always work with integrityand honesty.

We listen to our clients’ voice carefully
and consider things from their perspective.

We will aim to make deals in which our customers
and our company have a win-win relationship.

Compliance

Value Added

Teamwork

We consider complianceto be our utmost important responsibility.

We will strive to provide high added value
to our clients.

We contribute to our clientswith the teamwork of our diversified staff.

Adaptability,Creativity

Commitment

Think Global

We adapt ourselves to the change of time,
and work with creativity.

We complete our job with a thorough responsibility
once we commit the business.

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

Managing Director

78Major Achievements April 2021 – March 2022

Corporate Profile

Features of Mita Securities

Corporate Profile

Positive net profit for 19 consecutive years
Fund Business

TOB Agent

Finance

We have been continuing to achieve a positive net profit for 19 consecutive years through the FY2021. The Lehman shock, the European debt crisis, the Great
East Japan Earthquake, and the pandemic of Covid-19, Russian Aggression in Ukraine and other major crises continuously occurred. It was difficult for securities
firm to keep profits in black for this long period. We diversify our businesses, and we have a wide range of services and products as well.
Diversification and the adaptability to new environments are the clues to our strength.

We launched the fund of hedge

Nippo Sangyo
Invesco Office JREIT
HyAS & Co.
Japan Asia Group
Fuji Kosan Company

Sanshin Electronics
Sawada Holdings
ZettonSNK

Fiduciary Duty
We have been addressing and emphasizing the importance of the "Fiduciary Duty" since FY2003 and sharing the idea with all the staff. We believe in it as anultimate responsibility to be professional and integrity to our clients. This sense of responsibility is reflected in several indicators. For example, our commission
turnover ratio* is 0.25% per year (FY2021 results), which is well below the average in our industry, while high turnover in our industry is often criticized.
* Commission turnover ratio = (commissions + gains on bond trading)/total clients’ assets under custody

We purchased warrants of IVY Cosmetics, Wintest and Media Links.

Lineup of our highly unique products and services
We differentiate ourselves from our competitors by creating and developing highly unique products and services. The era of pushy sales strategy, in which
securities firms forced their products to clients even though they were unwilling to purchase them, is over. We believe it is important to provide products andservices that are truly desired for and supported by investors.

M&A Advisory

We were retained as the financial advisor of Recomm.
Our client formed the capital and business alliance with Greentech.
We were retained as the financial advisor of Arisawa Manufacturing.
Our client succeeded in obtaining whole shares of its subsidiary in Taiwan.

Organization Chart

Venture Spirit
We value a free and open-minded culture as well as a spirit of challenge. It is essential for us to integrate the ingenuity, creativity, and originality. Despite thecompany's long history of more than 70 years, we never forget the venture spirit.

Professionalism
We employ in-house specialists to ensure the highly professional work. We also actively collaborate with outside experts. By leveraging the expertise of internaland external experts, we provide the best differentiated services to our clients.

Wealth Management Division
Information Technology Committee
Compliance Committee

Equity Division

Trading & Execution Dept.

Fixed Income Division

Electronic
公 開 Trading
引 受 Dept.
部

Equity Dealing Division
Board of Directors

President & CEO

Investment Banking Division

IPO department

Real Estate DivisionCorporate Auditor

Audit Dept.

IFA Business Dept.
Operations Dept.
Control Division

Compliance Dept.
Underwriting Examination Dept.

Finance Division

Human Resources & Administration Dept.

Information Technology Division

Financial Reporting Dept.
Research Dept.

As of March 2022, the Group has the following specialists
1 lawyer, 3 CPAs, 1 junior accountant, 1 US CPA, 2 Singapore CPAs, 1 Certified social insurance labor consultant and 1 tax accountant.

9

10

Wealth Management Services

Corporate Profile

We provide comprehensive solutions to our high net worth clients with a variety of products and unique services.

Investment Bank

Corporate Profile

We provide a wide range of investment banking services to clients. Our strength lies in our flexible solutions and professional advisory. In
cooperation with our subsidiary in Singapore, we provide professional support for cross-border deals.

Asset Management

Support for Overseas Expansion and Emigration

TOB Agent and Financial Advisory Services

Finance - Warrants and CBs

We offer a wide range of products from traditional ones to alternative ones.

We have a subsidiary in Singapore (Mita Securities Global Consulting
and EJC) to support smooth and optimal overseas expansion and/or
emigration.

We are proud to be ranked 6th in the league table. (Since 2007, basedon number of cases). We have a substantial experience in thisbusiness, and established a reputation for giving right advice
to various complicated situations.

We purchase warrants and CBs issued by listed companies and assist
them in fundraising.

Products
Listed stocks, Options, Futures, U.S. stocks, Bonds,
Mutual funds, Hedge funds, PE funds, Real estate funds,
Original funds, Structured bonds etc.

Non-resident Accounts and Standing Proxy Services
We welcome non-residents clients to open an account with us. We canact as your standing proxy which is necessary for non-residents wheninvesting in Japanese stocks.

Advisory for Inheritance Tax and Business Succession PlanningLoans

You need sufficient and comprehensive plans to pass on your valuableassets and business to your descendants. We specialize in advisory forinheritance tax and business succession planning and have a wide
range of experiences in advising clients.

We provide many types of loans, such as stock collateralized loan,
mutual fund collateralized loan. Our subsidiary, Mita Global Finance,
can offer mortgage loan.

Real Estate

Life Insurance

We help our clients manage their real estate assets. We offer a wide
range of services, such as brokerage, asset management and overseas
real estate investment etc. We have a number of professionals withextensive experiences in the real estate industry.

We provide life insurance policy. Qualified sales professionals support
you. We also offer advice on reviewing your life insurance policy.

Finance - Factoring
We do factoring of medical receivables, mainly for hospitals,
nursing care homes and pharmacies, to support their funding.
Since the start of our business in 2003, we have purchased a large
number of medical receivables.

Finance - Rights Offerings
We have extensive experience in advising companies on rights
offerings.

IPO Advisory
We are designated as the lead managing underwriter from Tokyo
Stock Exchange and provide advisories such as examination ofcapital policies and internal management systems, managing IPO
schedules, and determining IPO prices to the companies which aim togo public.

Capital Markets
Our equity and fixed income teams provide clients with a diverse range of products and professional services in our Capital Markets practice.

Overseas Investment

Direct Market Access (DMA)

Fixed Income BusinessFor professional traders from fund managers to day traders, we
provide the online trading services. Those who has a FIX device canconnect to our DMA. We offer high-speed, low-cost trading
environment. You can also take advantage of using our five types ofalgorithms to support your diversified investment strategies.

Our fixed income traders with many years of experience in the bondbusiness trade mainly government and corporate bonds of developed
countries. We also provide emerging bonds and structured notes. We
take an advantage in providing with a competitive price with over 10
investment banks and a nationwide network of brokerage firms.

We can help you invest in overseas assets, such as U.S. stocks,foreign
bonds, hedge funds and overseas real estate etc. Our currency exchangecommissions are comparatively cheap.

Fund
We do a thorough research and due diligence to provide attractive funds from around the world to our clients. We differentiate ourselves toprovide highly unique products that are only available with us. Even though it is a professional fund that requires a large investment, we
reorganize it so that individual investors can invest in it even with a small amount.

Fund of Funds

Real Estate Funds

Mita Capital Pte. Ltd., our Singapore subsidiary sets up and manages afund of funds. It selects hedge funds with excellent performances andreputations from all around the world, and invests in a diversified rangeof hedge funds with different investment strategies, investment targets,investment regions, and sources of risk.

We have set up many kinds of real estate funds. Not only the funds toget both of income and capital gains but also the funds for inheritanceplanning. We also set up the funds to renovate traditional town housein Kyoto, and the distressed fund for U.S. real estate. We are licensed
as a real estate fund management company.

Hedge Funds

Original Funds

We have a lineup of good hedge funds. They aim at absolute returns
even when the stock market is going down.

We are able to create original funds for our clients. When you set up
your own original fund, you have to clear complex regulatory
requirements. We have extensive experiences in advising clients on
the structuring of original funds.

PE Funds
We have provided opportunities for our clients to invest in venture
funds that invest in attractive venture companies in the US and India.

Real Estate
We are engaged in real estate related business. We are licensed for the brokerage business as well as the fund management and distribution
business. We have a wide range of real estate business experience.

Real Estate Agency

Overseas Real Estate

Our professionals have many years of experience in the real estateindustry and can help you buy and sell real estates. As a licensed
security firm, we also buy and sell real estate trust beneficiary rights.

We use our global network to support real estate investments in the
U.S. and Asia. There are many barriers to overseas real estate
investment, such as languages, laws, and business practices, which
would make investors uncomfortable. Our experts are pleased tosupport you with good knowledge and English.

Real Estate Fund Management

We have extensive experience in setting up real estate funds.We have an experience in structuring a variety of funds. We provide a wide range ofservices, from providing general advice on fund set-up to soliciting investors and managing funds.

Moneylending BusinessWe have been operating money lending business since 2002. We provide quick and flexible support for clients.

Examples of original funds
solar power fund, industry restructuring fund,modern art exhibition fund, pro-wrestling fund etc.

Securities-Backed Loans

Factoring and Loans for Hospitals

We provide loans secured by listed stocks, mutual funds, bonds andother securities. We can provide loans in two days at the shortest witha quick screening process. While you utilize your own company's
shares as a collateral, the name of the shareholder is unchanged.

Since 2003, we have been engaged in factoring business for hospitals.
We will also purchase the future receivables.
We are proud of our top-class experience and achievements infactoring for small and medium-sized medical institutions.

11Subsidiaries

Corporate Profile
We have established subsidiaries in Japan and Singapore to supplement our securities business.
We will continue to leverage our strengths in cross-border transactions.

We are registered as a RFMC (Registered Fund Management Company) and areengaged in fund management businesses.

Company NameMITA SECURITIES Co.,Ltd.

Registration

Director of Kanto Local Finance Bureau (Financial instruments firms) No.175
Moneylender / Tokyo Governor (7) No.27088

Representative: Yui Haraguchi

Registered Real Estate Broker / Tokyo Governor (1) No.103950

Business Scope

Real Estate Specified Joint Enterprises / Commissioner of the FSA・Minister of Land, Infrastructure and Transport No.76

Fund Management

MSGC was founded in Singapore in August 2019. We seek to provide a businessand cultural bridge between Japan and overseas countries, especially Singapore.
Our team members, with a wide range of expertise and experience in the
Representative: Eric Tong
Business Scope
Cross-border M&A advisory services, due diligence, Post-Merger Integration,market research report,
cross-border fundraising advisory, fund set-up support,overseas expansion support,
finding cross-broader business alliance support,real estate advisory services, wealth management,international IR support, etc.

Commencement of Operation

July 1949

Capital

500,000,000 yen

Major Shareholder

Kunihiro Mita

President & CEO

Kunihiro Mita

Overseas Subsidiary

EJ Consultancy Services Pte.Ltd. Mita Securities Global Consulting Pte. Ltd

Subsidiary in Japan

Mita Global Finance

Office addresses(Head Office)3-11, Nihonbashi-kabutocho, Chuo-ku, Tokyo 103-0026
Tel +81-3-3666-0011 Fax +81-3-3668-7350(Osaka Branch)

1-7-15-5F, Minami-honmachi, Chuo-ku, Osaka City, Osaka 541-0054
Tel +81-6-6260-5670 Fax +81-6-6260-0882(Subsidiary)

Mita Capital Pte. Ltd.
105 Cecil Street #24-02 The Octagon Singapore 069534 Tel +65-6692-8325(Subsidiary)

Mita Securities Global Consulting Pte. Ltd.
105 Cecil Street #24-02 The Octagon Singapore 069534(Subsidiary)

EJ Consultancy Services Pte. Ltd.
105 Cecil Street #24-02 The Octagon Singapore 069534

The accounting firm was established in 2004 in Singapore and was acquired byMita Securities in 2017.
The firm provides tax and accounting services in Singapore. Takeshi Narita, aJapanese tax accountant, is also a member of our affiliate company (EJA) andprovides services for Japanese clients in Japanese language.
Representative: Eric Tong
Business Scope
Incorporation, tax returns, accounting, secretarial services, dispatch of directors,
advisory services, due diligence, etc.

Membership in Associations

Japan Securities Dealers Association
Tokyo Real Estate Association

MGF was set up in 2020 for mortgage loans. We provide loans for investment
properties. We also cater to non-residents of Japan.
Representative: Satoshi Kimura

Membership in Investor Protection Funds Japan Investor Protection Funds

・Compliance Committee
・IT Committee

Head of Internal Control System

Board of Directors
Instructions for
Problem Solving

Reporting Problems ofInternal Control System

Tokyo Head OfficeEitai DoriTokyo Metro Tozai Line

Infrastructure Unit

ComplianceDepartment

Audit Department

Tanjong Pagar Station

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

Check for Risk Control
and Internal Controls

Subsidiary companies in Singapore

Corporate Auditor

External Auditor

Audit Report

ト
ダク
イア
・バ
ペル
ケッ

Audit
Governance Check

Telok Ayer Staion

Cecil St

Robinson Road

Raffles Place Station

Shenton Way
Marina Bay

ローソン
LAWSON

Fukusuke

Osaka Branch Office
Teijin Hall

Chuo Odori

Sakaisujihonmachi Station
Bank of Tokyo-Mitsubishi UFJ

Kayabacho Intersection

Pointing Out Problems ofInternal Control System

Maxwell Road

Check for Compliance System andInternal Control System

Securities Dealers Association

Kayabacho Station

Subsidiary companies in Singapore Map

Business Unit

Osaka Branch Office Map

Subway Sakaisuji Line

Committee

Tokyo Stock Exchange

Heisei DoriOur Governance

Moore Shisei & Co. / KPMG Singapore

Tokyo Head Office Map

Showa DoriWe are a ﬁnancial instrument business operator who is an important player in this ﬁnancial market, therefore we not only ensure strict
compliance with all laws and regulations, but also need to develop the suﬃcient internal control structure in order to protect investors
and to secure fairness of the market. Compliance is a top management priority for our company.

Accounting Auditor

Inter Circular Route(Toll road)

Mortgage loans

Compliance

Instructions for Improvement to Enhance
the Quality of Internal Control System

The Tokyo Stock Exchange・The Osaka Stock Exchange

Membership in Exchanges

Business Scope

Toei Asakusa Line

Mita Global Finance Pte. Ltd.
(MGF, Tokyo Governor (1) No. 31780)

Japan Financial Services Association

Cross StEJ Consultancy Services Pte. Ltd.

Shin-Ohashi Dori

Mita Securities Global Consulting Pte. Ltd.

Corporate Profile

Tokyo Metro Hibiya Line

Mita Capital Pte. Ltd.

Company Overview

Nihonbashi Station

12

Subway Chuo Line13