Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2022
(Based on Japanese GAAP)
July 27, 2022
Company name:
OKASAN SECURITIES GROUP INC.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

8609
President

URL

https://www.okasan.jp/Inquiries:

Senior General Manager, Treasury Planning
Dept.

SHINSHIBA Hiroyuki
MIYAZAKI Nobuyuki

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 10, 2022
–Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
No

TEL

03-3272-2222(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Net operating
Profit attributable toOperating revenue
Operating profit
Ordinary profit
revenueowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2022
15,789 (10.1)
15,427 (10.7)(1,530)–(1,440)–(772)–
Three months ended June 30, 2021
17,553 15.0
17,268 15.2
767 142.1
955 73.8433 (17.7)
Earnings per share

Diluted earnings per share

Yen(3.90)
2.19

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen–
2.18(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Millions of yen
713,146
816,567

Equity ratio

Millions of yen
184,499
189,860

Net assets per share
%
22.9
20.6

Yen
824.60847.85

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00

Yen–

Yen
15.00

Yen
15.00

––––

Year ending March 31, 2023 (Forecast)

1Total3. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

208,214,969 shares As of March 31, 2022

208,214,969 shares

Number of treasury shares at the end of the period
As of June 30, 2022

10,146,941 shares As of March 31, 2022

10,221,299 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022

198,018,384 shares Three months ended June 30, 2021

2197,840,934 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Segregated deposits

86,94690,87488,745
83,77587,7603,114

80,7003,075

227,666
227,583

225,271
225,185

Derivatives
Trade date accrual

83
8,665

85
–

Margin transaction assets
Margin loans

63,432
54,27868,29461,448

9,154

6,846

Loans secured by securities
Securities purchased under resale agreements

228,480
228,480138,034
138,034

Advances paidShort-term guarantee deposits

1,263
18,596710
18,084

85
107

355
109

2,500
6,481

3,597
6,328

Segregated deposits for customers
Other segregated deposits
Trading products
Trading securities and otherCash collateral provided for securities borrowed in
margin transactions

Accounts for non-delivered securities and others
Short-term loans receivable
Securities
Other current assets
Allowance for doubtful accounts

(16)

(11)

735,086

633,296

Property, plant and equipment
Intangible assets

18,071
4,098

17,902
4,234

Investments and other assets
Investment securities

59,31051,326

57,712
49,124Retirement benefit asset
Other

2,534
6,343

2,526
6,954

Total current assets
Non-current assets

Allowance for doubtful accounts
Total non-current assets
Total assets

3(893)(892)

81,48079,849816,567

713,146(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Trading products

225,410

169,328

225,36148

169,31017–
25,421

16,712
19,70314,098
11,323

10,256
9,447

Borrowings secured by securities
Cash collateral received for securities lent

97,518
1,518

56,234
2,234

Securities sold under repurchase agreements
Deposits received

96,00061,42354,00077,263

Guarantee deposits received
Payables for securities to receive over due for delivery

37,002
17

38,71321

Short-term borrowings
Income taxes payable

138,5132,781

113,072
277

Provision for bonuses
Other current liabilities

2,020
5,500

579
5,130

Total current liabilities

595,610497,037

Non-current liabilities
Long-term borrowings

11,802

13,398

7,274

6,501

Trading securities and otherDerivatives
Trade date accrualMargin transaction liabilities
Margin borrowings
Cash received for securities sold in margin transactions

Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

208

208

6,407

6,326

Other noncurrent liabilities

4,163

3,933

Total non-current liabilities

29,85530,368Reserve for financial instruments transaction liabilities

1,241

1,241

Total reserves under special laws

1,241

1,241

626,706

528,647

Share capital
Capital surplus

18,58923,84818,58923,850Retained earnings
Treasury shares

120,984(3,733)

117,245(3,705)

Total shareholders' equity

159,689

155,979

Reserves under special laws

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

6,466

5,254

Revaluation reserve for land
Foreign currency translation adjustment

401
477

401
915

Remeasurements of defined benefit plans

834

775

8,179

7,346

Total accumulated other comprehensive income
Share acquisition rights

463

434

Non-controlling interests

21,52820,738

Total net assets

189,860

184,499

816,567

713,146

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)

Operating revenue
Commission received

Three months ended

Three months ended

June 30, 2021

June 30, 2022
11,153

10,807

4,686

3,830

108

37

2,543

3,159

3,815

3,780

5,610
531

4,245
498

Other operating revenue

258

237

Total operating revenue

Brokerage commission
Commission for underwriting, secondary distribution andsolicitation for selling and others for professional investors
Fees for offering, secondary distribution and solicitation
for selling and others for professional investors
Other commission received
Net trading income
Financial revenue

17,553

15,789Financial expenses

285

362

Net operating revenue

17,26815,427

Selling, general and administrative expenses
Trading related expenses

16,501
2,844

16,9572,798

Personnel expenses
Real estate expenses

8,168
2,130

8,445
1,995

Office expenses
Depreciation

1,411
785

1,937
692

Taxes and dues
Provision of allowance for doubtful accounts

275
(1)

257
(5)

Other887835

Operating profit (loss)

767(1,530)Non-operating income

223

141

Dividend income
Share of profit of entities accounted for using equity method

128
7111
6

Foreign exchange gains
Other

67
19

31935
1152
714
1818

Non-operating expenses
Interest expenses
Loss on sale and retirement of non-current assets
Settlement payments
Other
Ordinary profit (loss)

5718955(1,440)(Millions of yen)

Extraordinary income
Gain on sale of investment securities

Three months ended

Three months ended

June 30, 2021

June 30, 2022
70

Reversal of reserve for financial instruments transaction
liabilities–

0

Total extraordinary income

7022–

–
265

21280–

Total extraordinary losses

289

50

Profit (loss) before income taxes

674(1,490)

Income taxes - current

224

(101)

Income taxes - deferred

(69)

(606)

Total income taxes

155

(707)

Profit (loss)

518

(782)

Profit (loss) attributable to non-controlling interests

85

(10)

Profit (loss) attributable to owners of parent

433

(772)

Extraordinary losses
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Provision of reserve for financial instruments transaction
liabilities

6Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Three months ended

Three months ended

June 30, 2021

June 30, 2022
518

(782)

(1,172)(0)(1,815)
438

(78)

(60)

(41)

(82)

(1,291)(1,520)Comprehensive income(773)(2,303)Comprehensive income attributable toComprehensive income attributable to owners of parent(517)(1,605)

(255)

(697)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

7