Quarterly financial results of Subsidiary (Monex, Inc.)TOKYO, July 27, 2018 – Monex Group, Inc. (TSE 8698, Oki Matsumoto, Representative Executive Officer and CEO)streported today the following quarterly financial results of its wholly-owned subsidiary, Monex, Inc., for the 1 quarter ofthe fiscal year ending March 31, 2019 prepared in accordance with the generally accepted accounting principles in Japan.
stFinancial results for the 1 quarter of the fiscal year ending March 31, 2019 (From April 1, 2018 to June 30, 2018)(1) Results of operations(Unit: million yen)
Operating

Net operating

Operating

Ordinary

revenuerevenueincomeincome

Profit

For the 1st quarter of the
fiscal year ended

7,749

6,713

781

791

576

7,715

6,691

902

911

693

0.4

0.3

-13.5

-13.2

-16.9

June 30, 2018
For the 1st quarter of the
Fiscal year ended
June 30, 2017
Change (%)(2) Financial condition(Unit: million yen)
Total assets

Net assets

As of June 30, 2018

689,561

49,603As of March 31, 2018

660,998

50,536(Please refer to Appendix for more details)
Contact:Akiko Kato
Corporate Communications OfficeMonex Group, Inc.
+81-3-4323-8698

Atsushi Demoto, Yuki Nakano
Investor Relations, Financial Control Department
Monex Group, Inc.
+81-3-4323-8698

This material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.

Appendix
１．Quarterly Financial Statements(1) Balance Sheets(Unit: million yen)
As of March 31, 2018

As of June 30, 2018

Current assets
Cash and deposits

63,282

85,195

Cash segregated for customers and others

272,752

279,771

Money held in trust

54,06057,061

Trading assets

19,233

18,409Trading securities and other

3,575

4,368

Derivatives

15,657

14,041

192,224

185,585

188,840

179,584

3,384

6,001

22-Margin transaction assets
Loans on margin transaction
Cash collateral pledged for securities
borrowing on margin transaction
Loans secured by securities
Cash paid for offering

1,196

981

Short-term guarantee deposits

25,96824,582

Accrued revenue

3,516

3,710

Short-term loans receivable

6,409

10,010

Other current assets

3,244

6,033

-2

-2

641,906

671,339759

709

Intangible assets

17,227

16,467

Investment and others

1,105

1,044

Investment securities

487

485

Long-term guarantee deposits

459

453

Allowance for doubtful receivables
Total current assets
Non-current assets
Property, plant and equipment

Deferred tax assets

93-Other

139

179

Allowance for doubtful receivables

-75

-73

Total non-current assets

19,091

18,221

Total assets

660,998

689,561

This material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.

(Unit: million yen)
As of March 31, 2018

As of June 30, 2018

Current liabilities
Trading liabilities

4,897

5,948

Derivatives

4,897

5,948

Trade date accrual

285

635

Margin transaction liabilities

29,68336,188Borrowings on margin transaction

13,241

14,847

Cash received as collateral for securities
lending on margin transaction

16,441

21,340Loans payable secured by securities

61,10040,738Deposits received

148,125

162,273

Guarantee deposits received

197,653

208,318

Short-term loans payable

87,40094,400Current portion of long-term loans payable

19,0001,000

Allowance for point services

220250

Deferred tax liabilities

209-

Other current liabilities

3,814

2,407

552,389

552,159

56,70086,200-263

56,70086,463

1,372

1,334

1,372

1,334

610,461

639,957

Common stock

12,20012,200Capital surplus

32,56932,569Retained earnings

4,579

3,673

Owners’ equity

49,34848,443Net unrealized holding gains (losses) on
securities

1,188

1,159

Accumulated other comprehensive income

1,188

1,159

Total net assets

50,536

49,603

Total liabilities and net assets

660,998

689,561

Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Total non-current liabilities
Statutory reserve
Financial instruments transactions reserve
Total statutory reserve
Total liabilities
Net assets

This material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.

(2)Statement of income(Unit: million yen)Three months

Three months

ended June 30, 2017

ended June 30, 2018

(From April 1, 2017
to June 30, 2017)(From April 1, 2018
to June 30, 2018)

Operating revenue
Commission revenue
Brokerage commission
Underwriting and distribution

3,916

3,538

3,290

2,885

522

Subscription and distribution

8870

Other commissions

531

560

Net gain on trading account882943

2,888

3,246

Financial income
Other operating revenue2820

Total operating revenue

7,715

7,749

Financial expenses

1,024

1,036

Net operating revenue

6,691

6,713

5,789

5,932

902

781

Non-operating income

1011

Non-operating expenses

11911

791

Reversal of financial instruments
transactions reserve

44

37

Compensation income

61-

Total extraordinary income

105

37

32

-

Selling, general and administrative
expenses
Operating income

Ordinary income
Extraordinary income

Extraordinary loss
Head office transfer cost
Total extraordinary loss

32-

Income before income taxes

984

828

Income taxes - current

291

Income taxes - deferred

288

160

Total income taxes

290251693576

ProfitThis material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.

２．Supplementary information(1) Brokerage commissions(Unit: million yen)Three months ended June 30, 2017

Three months ended June 30, 2018

(From April 1, 2017

(From April 1, 2018

to June 30, 2017)

to June 30, 2018)

Stocks and ETFs

3,208

2,819

Options and Futures

8266

3,290

2,885

Total brokerage commissions(2) Brokerage trading value of stocks and ETFs

(Unit: million yen)Three months ended June 30, 2017

Three months ended June 30, 2018

(From April 1, 2017

(From April 1, 2018

to June 30, 2017)

to June 30, 2018)

Cash

2,150,701

1,808,214

Margin1,673,027

1,995,105

Total

3,823,728

3,803,320

This material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.

(3) Statement of income for each quarter

Operating revenue
Commission revenue
Brokerage commission
Underwriting and distribution(Unit: million yen)
1Q of FYE

2Q of FYE

3Q of FYE

4Q of FYE

1Q of FYE

Mar. 2018

Mar. 2018

Mar. 2018

Mar. 2018

Mar. 2019

3,916

4,084

4,688

4,399

3,538

3,290

3,322

3,999

3,625

2,885

5120

30

15

22

Subscription and distribution

8877

119

173

70

Other commissions

531

563

538

585

560

Net gain on trading account

882

921

1,035

1,022

943

2,888

2,392

2,979

2,519

3,246

28

26

643

24

20

Total operating revenue

7,715

7,424

9,347

7,966

7,749

Financial expenses

1,024

568

976

491

1,036Net operating revenue

6,691

6,856

8,370

7,475

6,713

5,789

5,769

6,184

6,281

5,932

902

1,086

2,186

1,194

781

Non-operating income

1028

744

11

Non-operating expenses

112

4

1911

1,112

2,190

1,234

791

Reversal of financial instruments
transactions reserve

44-

-

-44

37

Compensation income

61-

-

-

-

Total extraordinary income

105-

-

-44

37

Loss on disposal of Property, plant andequipment

--

1924-

Head office transfer cost

32-

--

-

Provision of financial instruments
transactions reserve

---

4-

Total extraordinary loss

32-

1929-

Income before income taxes

984

1,112

2,171

1,161

828

Income taxes - current

2292

517

453

91

Income taxes - deferred

288

68

154

-88

160

Total income taxes

290

361

671

364

251

693

751

1,499

796

576

Financial income
Other operating revenue

Selling, general and administrative
expenses
Operating income

Ordinary income
Extraordinary income

Extraordinary loss

ProfitThis material is an English translation of a Japanese announcement made on the date above. Although the Company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this English translation is not guaranteed andthus you are encouraged to refer to the original Japanese document. This translation was made as a matter of record only and does notconstitute an offer to sell or to solicit an offer to buy securities in the U.S.