CO., LTD.
3-11, Nihonbashi-kabutocho, Chuo-ku, Tokyo 〒103-0026
Tel 03-3666-0011 Fax 03-3668-7350

Annual Report 2015
Corporate Profile 2016

MESSAGE FROM THE PRESIDENT & CEO
We remain committed to full disclosure of our information in order to strengthen the relationship and trust with our clients and business partners.
This Annual Report 2015/ Corporate Profile 2016 are provided to inform you of our financial information and business summary.

Although the Japanese stock market of the fiscal year 2015 surpassed the ¥20,000 mark for the first time in 15 years, it was hampered by thefinancial turmoil originating in the worldwide simultaneous stock price drop in August 2015 and in January 2016 due to the concerns over
the China’s economic slowdown. The Japanese government and BOJ mobilized various measures in order to support the economy, such as
the introduction of negative interest rate, however, the domestic economy was lacking fiscal stimulus, and Prime Minister Shinzo Abeannounced the re-postponement of a consumption tax increase after all. The depreciation of the yen and higher stock prices which had been
supporting the popularity of the current government reached a turning point, and the economic environment surrounding the securities
industry deteriorated most since the beginning of Abenomics.
In such environment, we were accordingly forced to confront severe business condition.
However, we could offset the part of declines in our business thanks to rises in the advisory andproprietary trading business. We served as the TOB agent in April 2015 and successfullycompleted our mission. We also served as the financial advisor for the large-sized MBO deal in
May 2015 and we contributed to its success. We launched an investment fund supporting therestoration of Kyoto Machiya (townhouses in Kyoto) in July 2015. Moreover, the proprietary
trading business at our Singapore office which we launched in 2014 contributed to our financial
performance throughout the year. Our financial balance achieved substantial growth due toincrease of US mortgage loans, and we could compensate for the weakness of earning structurein the securities industry, which is vulnerable against the market fluctuation.
As the result, our net operating income which is equivalent to gross profit in the securities
industry recorded its highest and the net income also posted the second highest level after
the burst of the bubble economy. The net asset reached ¥5 billion for the first time since ourfoundation.
We wouldn’t have been able to achieve such business results without our clients’ support.
I would like to express our deep appreciation to our clients and business partners, and we willcontinue to make constant efforts for offering the client-centered financial products or highquality services. We look forward to your continued patronage and support for us in the future.

Kunihiro Mita
President & CEO
MITA SECURITIES Co., Ltd.

01

Financial Summary of FY2015 (Income Statement)
Commission

Financial Profit

The total commission was ¥340,221K (98.3% YoY).
The breakdown is as follows.

The financial profit which is the financial revenues less thefinancial expenses expanded substantially to ¥535,480K (210.0%
YoY). The growth in the financial revenues (165.6% YoY) was
larger than the growth in the financial expenses (100.7% YoY),
and an improvement in the fund procurement cost contributed to
the remarkable increase in the financial profit. The outstandingbalance of mortgage loans, mainly US mortgage loans, expanded
significantly (310.0% YoY), and the loans backed by investment
funds also increased (170.0% YoY).

[Commissions for Distribution/Selling/Underwriting]
The distribution commissions decreased to ¥90,079K (70.8% YoY).
The sales of our new hedge fund made a good performance in thisfiscal year, however, the existing hedge funds struggled to increase thesales, and the commissions for distribution declined.
We received the underwriting commission of ¥752K including thesales commission for IPO of three Japan Post group companies.
[Other Commissions]
The other commissions reached ¥73,409K (102.5% YoY) andslightly increased from the same period last year, as the total asset
of investment funds for our clients rose (115.0% compared to theend of the previous fiscal year).

Trading Profit
The stock trading profit reached ¥1,465,700K (270.0% YoY).
The proprietary trading business at our Singapore office which welaunched in the previous fiscal year contributed to our financial
performance throughout the year, and the trading profit expanded
substantially. The bond trading profit was ¥26,677K (77.0%
YoY). As the result, the total trading profit drastically increased
and reached ¥1,492,448K (260.0% YoY).

Other Operating Revenues
The other operating revenues were ¥352,860K (88.2% YoY).
We served as the TOB agent for a Cookpad Inc.’s tender offer for
shares of Minnano Wedding Co., Ltd. and we were also engaged
in the advisory business of Japan Wind Development Co., Ltd.’s
MBO for Bain Capital. Although we achieved some results, theprofit of factoring business declined by half compared to the same
period previous year and the finance related business was alsosluggish.

As the result, net operating income reached ¥2,721,010K(173.8% YoY), and we recorded the highest level after thecollapse of the bubble years.

Selling, general and administrative expenses
The selling, general and administrative expenses reached¥2,101,914K (145.1% YoY).
The personnel expenses increased to ¥1,512,247K (171.2% YoY)
owing to good performance of the proprietary trading business,and the business related expenses also increased to ¥292,600K(139.2% YoY) due to the rise in stock and futures transactions.
As the result, the operating profit was ¥619,096K (520.0%
YoY), the ordinary profit was ¥633,280K (400.0% YoY), theincome before income taxes was ¥646,276K (340.0% YoY),
and the net income was ¥750,481K (690.0% YoY)

(Unit: Thousands of Yen)

Accounts

Amounts

Operating Revenue

2,911,655

Commissions

340,221

Brokerage
Underwriting/Solicitations for sales to specified investors

176,733
752

Subscription/Distribution

89,326

Others73,4091,492,448

Trading profit
Financial revenue

726,124

Other operating revenue

352,860

Financial Expenses

190,644

Net Operating Income

2,721,010

Selling, General and Administrative Expenses

2,101,914

Business related expenses
Personnel expenses

Annual Report

Annual Report[Brokerage Commission]
The brokerage commissions of stocks and other securities
reached ¥176,733K (120.1% YoY).

Income Statement (April 1, 2015 through March 31, 2016)

292,600
1,512,247

Real estate related expenses

35,731

Office expenses

168,289

Depreciation expenses

30,718Tax and dues

39,546

Others

22,780Operating Profit

619,096

Non-operating income

25,671Non-operating expenses

11,487

Ordinary Profit

633,280

Extraordinary profit

12,995Gain on sales of subsidiaries and affiliates' stocks

7,257

Gain on sales of investments in capital of subsidiaries and affiliates

5,219

Reversal of reserve for financial products transaction liabilities

518

Income Before Income Taxes

646,276

Income taxes-104,205

Net Income

750,481Note: Fractions less than one thousand yen have been omitted.

02

03

Financial Summary of FY2015 (Balance Sheets)
Current Assets

Fixed Liabilities

The total current assets reached ¥20,234,318K (73.6% YoY).
The main changes from the previous year are as follows.
•Trading products substantially decreased to ¥265,606K(11.4% YoY)
due to withdrawal from the proprietary trade of long/short strategy.
•Assets for margin transactions decreased to ¥7,953,725K (70.6% YoY)
due to a decrease in the outstanding balance of margin transactions.
Short-term guarantee deposits sent to securities finance companies orclearing corporations were ¥688,317K (40.4% YoY).

The total fixed liabilities reached ¥71,622K (95.2% YoY).
There is no major change from the previous year.

(Unit: Thousands of Yen)

Assets
Accounts

Net Assets
The total net assets reached ¥5,015,515K (116.9% YoY). This isdue to accumulation of profits.
Our net asset reached ¥5 billion for the first time since ourfoundation in 1949.

Fixed Assets

According to the above results, the total assets were
¥20,813,599K (73.9% YoY),
The capital-to-asset ratio was 24.0%, an 8.8% increase fromthe same period last year, and the capital adequacy ratio was
341.6%, a 3.8% increase from the same period last year.

The total fixed assets reached ¥579,280K (85.7% YoY). There isno major change from the previous year.

Current Liabilities(Unit: Thousands of Yen)

3,000,000

1,000,000

Ordinary Profit
Net Income
Net Operating Income

Change in ROE(Unit: %)Change in Assets Under Custody

800,000

20.00

OthersBeneficiary Certificates
Bonds
Bonds

600,000

15.00

400,000

10.00

120,000
100,000

1,500,000
1,000,000

200,000

500,000

5.00

0.00

1,200,000

Assets for margin transactions

7,953,725

Loans on margin transactions

7,426,005

Cash collateral pledged for securities borrowing on margin transactions

527,720
1,369
688,317990
7,142,468
137,786

1,801,081

Short-term debts

5,700,000

Accounts payable-monetary claims
Unearned revenue

9,728

Accounts payable-otherPrepaid xpenses

1,036

Accrued expenses

9,471
968
340,873
1,953

Accounts receivable

103,423

Income taxes payable

197,457

Deferred tax assets

410,884

Provision for bonuses

75,426

Other current assets

17

Provision for directors' bonuses

65,000

Provision for directors' retirement benefits

40,000

Other current liabilities

240,406

20,176

Noncurrent Assets

579,280

Noncurrent Liabilities

71,622

Tangible fixed assets

97,523

Deferred tax liabilities

47,016

Buildings

83,897

Provision for retirement benefits

15,606

Furniture and fixtures

12,663

Other noncurrent liabilities

9,000

962

12
/1
2
20
13
/0
6
20
13
/1
2
20
14
/0
6
20
14
/1
2
20
15
/0
6
20
15
/1
2

20

2

/0
6

12

20

6

/1

11

20

2

/0

/1

11

10

500

Investmentsin capital of subsidiaries and affiliates

Total Liabilities

15,798,083

Net Assets

173,712
Shareholders' Equity
Capital stock

450.0

Long-term guarantee deposits

38,794Retained earnings

400.0

Long-term prepaid expenses

4,216

Legal retained earnings

69,715

Other investments

2,727

Other retained earnings

4,645,035

Reserve

3,894,554(Unit: %)△56,652

Allowance for doubtful accounts

250.0

Retained earnings brought forward

200.0

Treasury stock

150.0

5,015,515
500,000
4,714,751

750,481
199,236

100.0

20,813,599

Total Net Assets

5,015,515

Total Liabilities and Net Assets

20,813,599

15

14

20

13

20

12

20

11

20

20

10

09

20

20

08

Total Assets
20

5

4

20
1

3

20
1

2

20
1

1

20
1

0

20
1

9

20
1

8

20
0

7

20
0

6

20
0

20
0

5

4

20
1

20
1

Guarantee deposits received

3,630

0.0

3

1,067,057

64,44550.0

201

Deposits received

Long-term loans receivable

02

88,503

Investments in capital

2,000,000
20
15,963,888

Advance payments-other

Stocks of subsidiaries and affiliates

Change in Capital Adequacy Ratio

200,000

1

Borrowings on margin transactions
Cash received for securities lending on margin transactions

235,455

2,500,000

20
1

6,052,392

Investment securities

300.0

400,000

Liabilities for margin transactions

40,000350.0

600,000

3,000,000

98,951

12,91607

3,500,0000Trade date accrual

12,91620

Trading Profit
Other Operating Income
Financial Revenue

800,0009

265,606

Reserve for financial products transaction liabilities

20

4,000,000

20
1

Trading securities and other11

Reserves Under the Special Laws

20

15

14

20

13

20

12

(Unit: Thousands of Yen)

1,000,000

200Derivatives

14,92706

5,000,000

Brokerage FeeDistribution Fee
Other Commission

20

11

20

10

20

09

20

08

20

07

Change in Income by Category

1,400,000

4,500,000

20

06

20

20

(Unit: Thousands of Yen)

1,600,0008

265,606

466,82805,500,000

200Trading products

Intangible fixed assets

5

4

3

Change in Net Assets

20
1

20
1

2

20
1

1

0

20
1

20
1

9

20
1

8

20
0

7

6

20
0

22,493

Investments and other assets

20

0

0
20
0

22,504

Trading securities and other

60,00020,0007

Trading products

2,010,000

Vehicles

80,00020
01,529,138

Segregated cash and deposits(Unit: Millions of Yen)

160,000

25.00

140,000

2,000,000

6

Cash and deposits

Allowance for doubtful accounts

Change in Net Operating Income
Ordinary Profit/Net Income

20
0

15,713,543

Accounts receivable-monetary claims

Financial Highlights

200Current Liabilities

Short-term loans receivable

・Short-term Debts reached 5,700,000K (86.3% YoY) as cash on
hand increased by accumulation of profits, and the necessary
cash also decreased due to a decrease in the outstanding balanceof securities-backed loan and that of factoring.

Amounts

20,234,318

Variation margin paid

・Debts for margin transactions decreased to ¥6,052,392K (52.1% YoY)
due to decline of margin transactions.

Accounts

Current Assets

Short-term guarantee deposits

・Trading products substantially declined to ¥22,504K (1.0%
YoY) due to withdrawal from the proprietary trade as alreadymentioned in the above Current Assets.

04

Amounts

Cash paid for offering

The total current liabilities decreased to ¥15,713,543K (66.1% YoY).
The main changes from the previous year are as follows.

2,500,000

Liabilities

Annual Report

Annual Report

Balance Sheets (For the year ended on March 31, 2016)

Note: Fractions less than one thousand yen have been omitted.

05

Company Executives (From June 2015 to June 2016)

Mission / Business Principles

Kunihiro Mita / President & CEO

Yuji Nakao / Senior Managing Director

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

1982 Graduated from the Faculty of Economics at Saga University
1982 Joined Yamaichi Securities
1998 Joined Merrill Lynch Japan Securities
2002 Joined DLJ Direct SFG Securities (current Rakuten Securities)
2004 Joined Mizuho Securities
2008 Joined Mita Securities
2012 Executive Director of the Company

David Atkinson / Outside Director

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

1987 Graduated from the Faculty of Japanese Language at Oxford University
1987 Joined Andersen Consulting
1990 Joined Solomon Brothers Securities
1992 Joined Goldman Sachs
1998 Managing Director of Goldman Sachs
2006 Partner of Goldman Sachs
2007 Resigned from Goldman Sachs
2009 Joined Konishi Decorative Arts & Crafts as Executive Director
2010 Chairman of Konishi Decorative Arts & Crafts
2011 President & Chairman of Konishi Decorative Arts & Crafts
2014 President of Konishi Decorative Arts & Crafts

Annual Report

Tatehito Kadokura / Executive Managing Director

Yoshinobu Fujimoto / Company Auditor

Yukihiro Shimizu / Company Auditor

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
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

Mission

SincereSoft＆Service
Small, Slim＆Speedy

Our Company’s officers and employees act faithfully for our clients, business partners, laws
and ordinances, and shareholders.
Our Company’s officers and employees provide high-value added businesses
with our original business knowhow and the best services.
Our Company carries out speedy decision-making with our compact and lean organization.

All of the executives and employees share the concept of “ Six S ” as the fundamental principles, make the best effort to achieve
our client’s goals through the securities business, and furthermore, contribute to develop the sound Japanese economy.
Business Principles
Client Focus

Listen to our clients
We can find the best solutions eventually if we fully understand the essence of our clients’ problems.

Win-Win

Conduct businesses by which we can build a win-win relationshipwith every one of our clients, business partners, officers and employees, and shareholders
Only businesses which make every member engaged in projects happy can last longer.

Reputation

Seek businesses which enhance our reputation
Reputation can be enhanced by our efforts with a proper attitude toward businesses.

ROE

Achieve high profit by effective resource allocation
We manage our company with higher ROEs, enhance capital stock, and build a sound financial base.

Tsukasa Nakamoto / Operating Officer

1992 Graduated from the Faculty of Commerce at Waseda University
1992 Joined Nomura Securities
2008 Joined Mita Securities

1998 Graduated from the Faculty of Computer Science at University of California
1998 Joined Atsugi Information System
2002 Joined United World Securities
2004 Joined Societe General Securities
2005 Joined Mita Securities

Compliance

Place importance on complianceManagement focusing on compliance is required naturally within this free market in principle.

Yoshiki Iida / Operating Officer

Tatsuya Otsuki / Operating Officer

Teamwork

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

1991 Graduated from the Faculty of Business 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

Set a high value on teamwork
We can provide the more appropriate business solution for our clients if our team can gain power by
respecting each other’s individuality among the team members.

Adaptability,
Creativity

Cherish adaptability and creativity
Personnel with high productivity can absorb the constantly changing trends of society and anticipate the future.

Kenzo Sugiyama / Operating Officer

Keisuke Tomoyori / Operating Officer

1994 Graduated from the Faculty of Horticulture at Chiba University
1994 Joined Yuraku Real Estate (currently Taisei-Yuraku Real Estate Sales)
2003 Joined Nomura Real Estate Development
2009 Joined Tokai Tokyo Securities
2015 Joined Mita Securities

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

Commitment

Deal with our services with absolute responsibility
Businesses without responsibility give troubles to various people including our clients, business partners, andhis/her own team members.

Nobuhiro Miyashita / Operating Officer

Kiyoshi Hayashi / Operating Officer

1991 Graduated from the Faculty of Economics at Keio University
1991 Joined Toyo Trust and Banking (currently Mitsubishi UFJ Trust and Banking)1998 Joined Metroinstech2005 Joined Handson Create2008 Executive Director of the above company
2008 Joined Unimat
2009 Vice President of Unimat
2010 Joined Mita Securities

1989 Graduated from the Faculty of Literature at Doshisha University
1989 Joined Nikko Securities (currently SMBC Nikko Securities)
2005 Joined Rakuten Securities
2011 Joined SBI Securities
2015 Joined Mita Securities

Private Banking
Institutional Sales

Financial TechniqueCorporate Profile

Tadashi Chaki / Operating Officer

Investment Banking

Principal Investment
Prop Trading

We are also hiring two certified public accountants, one assistant accountant, one lawyer, and one tax accountant, and they are supporting ourdirectors and operating officers for specialized business services.

0607

Main Business Achievements after April, 2015

Wealth Management Services█

We served as the TOB agent for a Cookpad Inc.’s tender offer for shares of Minnano Wedding Co., Ltd. in April 2015.

█

We were engaged in the advisory business of Japan Wind Development Co., Ltd.’s MBO for Bain Capital in May 2015.

█

█

█

We launched an investment fund supporting the restoration of Kyoto Machiya (townhouses in Kyoto) under the Real EstateSpecified Joint Enterprise Act in July 2015.
We were an underwriter for the 12th subscription warrants of MEGANESUPER Co., Ltd. issued as the third-party allocation ofshares in March 2016.
We were an underwriter for the 27th subscription warrants of AnGes MG, Inc. in April 2016.

We were also engaged in 2 M&A advisory deals, 14 financial advisory deals, 2 block trades, and 6 real estate brokerage deals.

Corporate Social Responsibility（CSR）
Our mission is to contribute to the development of Japanese economy
from the financial side as a financial instruments business operator. It is
our wish that the lives of people become affluent with the developmentof economy. However, if that affluence means material satisfaction
without mental fulfillment, we believe it is not true affluence. There area variety of culture and art, and this culture and art are indispensable
elements which would enrich our lives mentally. We need both material
gains and mental benefits in order to feel real affluence.
We have been making donations of a certain portion of our profits
every year as one of the CSR mainly for the development andmaintenance of culture and art.

We supported the specified nonprofit organization called Ozawa
International Chamber Music Academy Okushiga. With a broad
perspective not only to European region but also to Asian region,
this music academy holds music lessons for Asian students studying
music and aims to nurture string players to be world-class.

Real Estate Services

We support our clients’ asset management from the side. We provide
broad and various investment products not only traditional financial
products such as stocks, bonds, and investment trusts, but also
products tailored for clients’ needs and special occasion products.
We not only provide financial products, but also analyze individual stocks,
financial products, and portfolios. We also calculate market value of the financial
products, propose asset diversification, and give various financial advices.

We are qualified as a registered real estate broker, and received
approval to launch real estate funds as a real estate specified joint
enterprise operator. Our real estate team deals with our clients’various needs for real estates. Its services include sales transactionsof real estate and real estate trust beneficiary rights, efficient usagesof real estates, and the establishment of real estate funds, by utilizing
our features as a securities firm.
We also provide information of international real estates and support sales
transactions in response to the increasing needs for overseas real estates.

Business Inheritance Measures

Organization Chart

Administration Div

Control Dept

It is a constantly critical issue how our client’s companies should be
passed on to the next generation. If the stocks are unlisted, it would
require substantial money for tax payment when transferring them.
Therefore we need to plan carefully and execute it steadily forsmooth business inheritance. It is also necessary to hedge risks forunexpected disease or death. The most important point of all is toclarify who will the successors.
We ourselves experienced the business inheritance, and have been
engaged in a number of cases for our clients as well. By making useof these experiences and achievements, we are confident in proposing
realistic and flexible measures which meet our clients’ needs.

General Affairs Dept
Accounting Dept

Audit Div
President & CEO
System Risk Committee
Compliance Committee

Credit Examination Dept
Investment Banking Div
Dealing Div
Client Relation Div

Wealth Management Dep
Retail Sales Dept
Tax Advisory Dept

Corporate Auditor
Product Division
Real Estate Div

Fund Structuring Support
In case of forming funds (including partnership), it is necessary tofollow various business regulations. We support our clients to form
funds, such as business-oriented funds, funds to invest in securities,
and real estate funds which meet our clients’ needs. We have trackrecords for a number of private fund establishments.

Finance
We are qualified for the money lending business and can support fundraising for our clients. We endeavor to provide speedy and high-quality
services so that we can meet our clients’ finance needs quickly. Our financeservices include securities-backed loans and mortgage-backed loans, andespecially investment trust-backed loans and mortgage-backed loans foroverseas (mainly US) real estates are our unique services.
We also possess the broad range of experiences and solutions forcorporate finance, not only for individual clients. We provide theexclusive solutions to meet our clients’ needs by partnering with ourinvestment banking division, including factoring services andpurchasing stock acquisition rights.

Insurance
We try to deal with various risks surrounding our clients, and we
propose schemes to hedge risks, which fit our clients’ life plans.

Other Services
Capital Strategies/M&A
We propose our clients’ companies with the most appropriate solutions
for even complicated issues by utilizing our new technologies andbroad information networks, such as capital strategies or M&A.
We can provide a wide range of services, such as consolidation of
scattered stocks, inheritance of stocks to successors by controlling thevoting rights, acquisition of international companies aiming foroverseas expansion, M&A utilizing treasury stocks, unwinding
cross-shareholding (block trades), and global reorganization. We
utilize our total capability with our investment banking division, tax
advisory team, and external professionals.

•Block Trade
We search counterparties for our clients’ block trades with our
external business partners, when our clients are willing to sell orpurchase a large amount of listed stocks at one time.
•Stock Lending
Our clients can obtain negative interest per diems by lending theirowned stocks.
•Standing Proxy Services
If our clients are non-Japanese residents and willing to maketransactions of Japanese securities, it is required for them todesignate a standing proxy in Japan. We support those clients for
non-resident transactions by becoming their standing proxy.

Corporate Profile

Corporate Profile

Asset Management

It is essential to take enough time for inheritance measures in orderto pass on the assets to the next generation. Moreover, we should
keep it in mind to secure assets with high liquidity so that successors
can pay inheritance tax without difficulty. (Tax payment measures)
We especially need to be careful if the portion of assets with low
liquidity in major proportions.
We grasp the current condition and plan the best measure according toour clients’ intention, and we also provide our clients with simulation
works for inheritance tax, advices for inheritance measures, andassessment of unlisted stocks. Nowadays we proceed with theresearch for inheritance measures with utilizing global schemes.

We supported a charity concert played by Japan’s leading young
musicians, aiming to support the people in Tochigi, who wereaffected by heavy rain from the typhoon No.18.

08

Since 1949, we have been running the family business, and we are one of a few privately owned securities companies whose majority shares are owned by one family.
While we keep our family business and we were also engaged in sustainable development of family businesses of our clients, we have obtained
various knowhow and experiences of wealth management.
Our wealth management team supports for the greater prosperity of our clients’ families by providing with the services which we ourselves actually have experienced.
We believe it is our virtue, value, and pride to be able to keep a good relationship with our clients’ families for generations.
We provide the most appropriate advice and services for the whole field of assets of our clients including asset management, inheritance, andbusiness succession. With a mid- and long-term point of view, we commit to work diligently for the sake of our clients.

Inheritance Strategy

CSR after April 2015

Board of Directors■Wealth Management Services of Mita Securities

If there are any other requests, we make the best effort to fulfill our clients’ needs and requests as much as possible. By dealing withvarious requests from our clients proactively, our services have succeeded to expand and deepen. Requests from our clients areimportant sources for our company’s sustainable development.

09

Investment Banking Services

Introduction and Arrangement of Financial Products■Investment Banking Services of Mita Securities■Financial Products of Mita Securities

We provide various services for finance and business strategies as our main investment banking services.
Our services include financial advisory services for rights offerings and M&A and TOB agent services. Especially we have strength in mediumand small-sized projects or special projects which major investment banks do not deal with proactively. We have been successfully
accumulating experiences and the actual results steadily in these fields.
We are building the business systems to enable us to invest, to lend money, or to accept securities by ourselves, so that we can deal with a wide
range of our clients’ finance demands with flexibility.
We are now searching business partners who would introduce our services to a number of other clients on behalf of us. Those partners can utilize ourcompany’s infrastructures linked with various financial services and the network among our business partners by joining our Mita Partnership Program.

Our Product Division introduces and arranges various financial products including foreign bonds, structured bonds, hedge funds, and ouroriginal securitized products for our clients.

Hedge Funds

We deal with Euroclear and have been participating in both domestic
and international bond markets directly. We are engaged in not only
providing individuals, corporate clients and foundations with foreign
bonds, but also the wholesale business for institutional investors

We select attractive funds on our own way among a number of hedge
funds existing in the world, and connect our clients with the funds
which are usually unreachable for individual investors. Clients canreceive our various supports in Japanese when buying one of thoseforeign hedge funds as we arrange it to our original fund after ourfund managers’ interviews and necessary due diligences.

Finance

Advisory

Structured Bonds

We provide various clients including listed and unlisted companies,
medical institutions, nursing care operators, dispensing pharmacies,
company management, etc. with funds in various ways. We canpropose the appropriate solutions even for the difficult projects
which banks or other security companies do not deal with.

We provide comprehensive and tailor-made solutions, centeredfor listed companies, in order to meet the various requests of ourclients, such as capital increase through shareholders’ allocation,
M&A, reorganization, business alliances, etc. We utilize ouradvantage of being a small team of elite professionals and show astrong presence in projects which major financial institutions do
not deal with.

Our employees who are experts of derivative products arrange
structured bonds liked to stocks and foreign exchange. We alsopurchase structured bonds which are difficult to be valued or estimatedwith significant cheap values, with our appropriate prices. We provide
institutional investors with reports based on the risk analysis of
structured bonds, securitized products, and structured finance.

•Rights Offering (commitment type)
Rights offering is a new technique of a capital increase for listedcompanies, where share options are allotted to all shareholders
without contribution. It has been attracting attention rapidly inrecent years.
We can deal with the commitment type of rights offering, whichmeans we purchase all the share options which were notexercised by the shareholders and then we exercise all of them.
With utilizing this scheme, listed companies can achieve capitalincreases without fail.
•Underwriting and Purchase of Securities
We have a number of track records for securitized products andpurchase of listed companies’ securities such as warrants issued
by a third-party allocation. We provide tailored finance plans
with lower costs in a speedy manner.
•Securities-backed Loans
We provide loans for company presidents or both major andminor shareholders of listed companies by accepting their listed
stocks as collateral. The registration names of those shares areunchanged, so that clients can procure funds by utilizing theirassets.
•Factoring
We provide funds by purchasing accounts receivable (factoring)in order to meet our diversifying clients’ needs of fund raising.
We started to purchase medical account receivables which
medical institutions and nursing care operators own and we havea number of the track records. it is worth noting that our entering
this field was faster than anyone else in the market.

•Rights Offering
As stated earlier, we hold the top track record of market shares inJapan as financial advisor. We provide broad and maximum support
including scheme design, financial assistance for shareholders, andassisting negotiations with public organizations.
•Stock Option
We provide listed companies and companies planning initialpublic offerings with consulting services to implement various
stock options, and we also deal with opening and management ofspecific accounts used for exercising stock options.
•M&A Advisory Services
We provide various professional advisory services as well ascompany valuation, which are essential for execution of M&A.
It is not realistic to pay all the huge investment cost of M&A by
its own money. It is quite common that the company is forced tofind some kind of way for fund raising with necessity, and we
can arrange the best finance schemes for our clients at the sametime with our M&A advisory services.
•TOB Agent Services
As a general rule, it is required to appoint a security company as
TOB agent when considering acquiring stocks of the listedcompany more than a certain number off the market. We haveabundant experience and track records of TOB as TOB agent.
We provide comprehensive supports including scheme design of
TOB and various administrative works.

Real Estate Services■Real Estate Services of Mita Securities
We try to meet our clients’ needs for searches and selling of real estate properties and other requests relating to real estate in our Real Estate Division.
We are qualified as a registered real estate broker, and as a real estate specified joint enterprise operator, and we are making approaches toward
the real estate market from a fair and neutral point of view as a securities firm. We also develop real estate investment products originally andare increasing the investment choices of our clients as we try to provide unique real estate businesses.

Real Estate Intermediary

Forming and Selling of Real Estate Funds

We search buyers or properties for our clients’ needs of selling orpurchase of real estate, and give our clients the one-stop services
including negotiations and executions.
We try to gather original information given from our special
sources or from our close relationship with real estate companies,
other than Internet information already on the market.

We are a securities company qualified as a real estate specified joint
enterprise operator, and we provide smaller-sized real estate products basedon the aforementioned regulations. Foaming original funds which meet ourclients’ needs is one of our strengths, and we deal with other securitizationneeds based on laws other than Real Estate Specified Joint Enterprise Law.
Creating the schemes is supported by our tax accountants, lawyers, etc.
and is achieved with a high-level of performance.

Intermediary of Real Estate Trust Beneficiary Rights
We deal with intermediary services of real estate trust beneficiary.
We support a series of transactions including research for realestate and submitting its report, preparation of documents basedon the Financial Instruments and Exchange Law, preparation oftransaction agreements, settlement services, etc.

We provide loans backed by clients’ real estate properties which
can be both domestic and overseas, and that is the most significant
feature among our services.
We try to grant loans with a term of a minimum of one week fromreceiving loan applications, so please contact us for any urgent requests.

Other Real Estate Solution Business

Other Services•Securitization
There are methods to achieve fundraising by dividing assets into
small-lot and securitizing them. We provide a full range ofservices including the first scheme design, setting up funds,
intermediary or mediator services, and the final exit.

Real Estate Loans

We provide solutions relating to various real estate businesses
including effective use and value-up of clients’ properties.

Corporate Profile

Corporate Profile

Foreign Bonds

Proprietary Trading■Proprietary Trading of Mita Securities

10

Dealing Business

Proprietary Investment

We have a number of dealers in our Dealing Division, and they are investingin stock and futures markets actively. They are contributing to our company’s
profit, and at the same time, they are playing very important roles forincreasing liquidity to the markets. They also deal with foreign bonds.

We have been acting on investments with our own funds actively
as one of players in capital markets. We are showing the excellent
investment performance as an investment expert by searching
more attractive investment opportunities globally.

11

Compliance

Company Overview■Compliance Structure of Mita Securities

We 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 tosecure fairness of the market. Compliance is a top management priority for our company.

Governance

Board of Directors

Audit

Accounting Audit

Audit Report

Internal Control System
Any financial instrument business operator is required to check client management, sales personnel management, transaction management, transaction
inspection, underwriting examination, compliance inspection system, lawsuits against clients, administrative management, information control, andexternal business contractor management. We also manage a Chinese Wall and the information control related to the clients systematically.

Tokyo Head Office Map
Tokyo Stock ExchangeTokyo Head OfficeEitai Dori

12

Tanjong Pagar Station

Securities Dealers Association

Tokyo Tozai Hibiya Line

Osaka Branch Office Map

LAWSON
ローソン

Kayabacho Intersection

Fukusuke

Singapore Branch Office

Robinson Rd

Kayabacho Station

Risk Control System
We analyze various risks including transaction risks, operational flow risks, and system risks, and we pay close attention to those risk
management so that we can eliminate or limit risks in advance. It is most important to prevent risks before they actually happen. But if we
actually fail to eliminate them, it is reported to the Board of Directors through the manager of corporate management department, and the Boardof Directors conducts risk management in order to deal with it appropriately and quickly.
Moreover, we place the System Risk Committee under the Board of Directors, and this committee periodically examines our overall systemrisks, and improves them if necessary.
As for the risk of sudden natural disasters, we plan the BCP (Business Continuity Plan) and aim to avoid the risks. We also conduct trainings
in order to be able to continue our businesses in emergency situations to the greatest degree possible.

Singapore Branch Office Map

Telok Ayer Station

Rafﬂes Place Station

Shenton Way
Marina Bay

Corporate Profile

It is essential for all officers and employees in the securities companies to comply with the compliance with all laws and regulations. However, due to the existenceof broad and various regulations in the securities industry, it is likely for us to have a brush with the laws and regulations without consciousness. In order for ourofficers and employees not to breach the compliance with all laws and regulations, we periodically conduct the training programs for them aiming to enhance theirunderstanding for the compliance. We also display our internal regulations on our intranet so that our officers and employees can easily browse them.
The corporate management department checks the compliance system every day, and the audit department conducts internal audits based on the audit plan.
If there are any violation of the laws and regulations, the audit department conducts the quick and appropriate procedures, and improves the problems.
Moreover, we place the Compliance Committee under the Board of Directors, and this committee examines our overall compliance system with expertise.

(As of July, 2016）

ト
ダク
イア
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ペル
ケッ

Corporate Profile

Compliance with All Laws and Regulations

Membership in Exchanges:
Membership in Investor Protection Funds:
Accounting Auditor:

Subway Sakaisuji Line

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

Check for Risk Control
and Internal Controls

Corporate Auditor

Membership in Associations:Inter Circular Route(Toll road)

Governance Check

Corporate Management
Department

Pointing Out Problems ofInternal Control System

Showa Dori

Administrative Department

Check for Compliance System andInternal Control System

Reporting Problems ofInternal Control System

Toei Asakusa LineBusiness Department

Instructions for
Problem Solving

Nihonbashi Station

Instructions for Improvement to Enhance
the Quality of Internal Control System

Maxwell Rd

Head of Internal Control System•Compliance Committee•System Risk Committee

Shin-Ohashi DoriCommittee

Commencement of Operation:
Capital:Major Shareholder:
President & CEO:
Office addresses:

MITA SECURITIES Co., Ltd.
Director of Kanto Local Finance Bureau (Financial instruments firms) No.175
Moneylender / Tokyo Governor (5) No.27088
Registered Real Estate Broker / Tokyo Governor (1) No.92893
Real Estate Specified Joint Enterprises / Tokyo Governor No.95
July, 1949
¥500,000,000
Kunihiro Mita
Kunihiro Mita
(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, Minami-honmachi, Chuo-ku, Osaka City, Osaka 〒541-0054
Tel +81-6-6260-5670 Fax +81-6-6260-0882(Singapore Branch) 07-03/04 112 Robinson Road Singapore 068902
Tel +65-9429-4723
Japan Securities Dealers Association
Tokyo Real Estate Association
Tokyo Stock Exchange・Osaka Exchange
Japan Investor Protection Funds
Seishinshisei & Co. / SCS Global PAC(Singapore Branch)

Tokyo Metro Hibiya Line

Our Governance

Company Name:
Registration:

Heisei DoriOur governance framework is as shown below.
The Board of Directors has a role with a full responsibility for the internal control system. It has a responsibility to enhance the quality of the internal controls
by receiving reports and evaluations from the corporate management department, the audit department, the auditors, the accounting auditor, or others.
The corporate management department examines the status of compliance and risk controls of the business department, and checked every day if there are any
violations of laws and ordinances and risk control-related problems. If any, it requests the business departments for improvement and also reports these important
issues to the Board of Directors.
The audit department periodically examines and assesses the quality and functions of the internal control system of the corporate management department.
If necessary, it conducts improvement of the problems for the corporate management department, the business department, and the administrative
department, and it points out the problems and lists demands for improvement to the Board of Directors.
The auditors have a role for the governance inspection for the Board of Directors, and examine if the Board of Directors is managed legally andappropriately or if there are any violations of the duty of a prudent custodian to the Company. If there are any problems associated with the above, theauditors send a list of demands for improvement to the Board of Directors or conduct the predefined necessary procedures.
The accounting auditor conducts auditing for the appropriateness of our accounting process and the appropriate indication of the financial statements.
Our accounting auditor is Seishin & Co. currently.

Osaka Branch Office

Teijin Hall

Chuo Odori

Sakaisujihonmachi Station
Bank of Tokyo-Mitsubishi UFJ

Subway Chuo Line13