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 Six Months Ended September 30, 2022
(Based on Japanese GAAP)
October 28, 2022
Company name:

OKASAN SECURITIES GROUP INC.

Stock exchange listing: Tokyo, Nagoya
Stock code:
8609
URL
Representative:
Inquiries:

https://www.okasan.jp/President
Senior General Manager, Treasury Planning

Dept.
Scheduled date to file Quarterly Securities Report:

SHINSHIBA Hiroyuki
MIYAZAKI Nobuyuki

TEL

03-3272-2222

November 11, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2022
Six months ended September 30, 2021

Percentages indicate year-on-year changes
Net operating
Profit attributable
Operating revenue
Operating profit
Ordinary profit
revenueto owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen% Millions of yen%
33,477(9.2)
32,756(9.7)(1,009)–(216)–
31 (98.7)
36,852
15.8
36,271
16.1
2,818
69.7
3,862
61.6
2,496
59.8
Earnings per share

Diluted earnings per share

Yen
0.16
12.62

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
0.16
12.55

(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
716,453
816,567

Equity ratio

Millions of yen
185,070
189,860

Net assets per share
%
23.3
20.6

Yen
823.21
847.85

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
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 six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 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 September 30, 2022

5,085,181 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)
Six months ended September 30, 2022200,639,275 shares Six months ended September 30, 2021

2

197,902,394 shares

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

As of September 30, 2022

AssetsCurrent assets
Cash and deposits

86,946

81,951Segregated deposits
Segregated deposits for customers

90,87487,760101,559
98,340

Other segregated deposits
Trading products

3,114
227,666

3,219
173,006

227,583
83

172,992
13

8,665
63,432

16,11876,91854,27868,141

Trading securities and otherDerivatives
Trade date accrual
Margin transaction assets
Margin loans
Cash collateral provided for securities borrowed in
margin transactions
Loans secured by securities

9,154

8,776

228,480

157,805

Securities purchased under resale agreements
Advances paid

228,480
1,263

157,805424

Short-term guarantee deposits
Accounts for non-delivered securities and others

18,59685

19,232321

Short-term loans receivable
Securities

107
2,500

91
3,597

Other current assets
Allowance for doubtful accounts

6,481
(16)

7,186
(12)

735,086

638,199

Non-current assets
Property, plant and equipment

18,07117,845

Intangible assets
Investments and other assets

4,098
59,3104,667
55,740Investment securities
Retirement benefit asset

51,3262,534

47,892
2,516

Other
Allowance for doubtful accounts

6,343
(893)

6,223
(891)

81,48078,253

816,567

716,453

Total current assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Trading products
Trading securities and other

225,410225,361

162,473
162,449

Derivatives
Margin transaction liabilities

48
25,4212420,691

14,098
11,323

8,955
11,736

Borrowings secured by securities
Cash collateral received for securities lent

97,518
1,518

63,2793,279

Securities sold under repurchase agreements
Deposits received

96,00061,42360,00081,007

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

37,002
17

43,056290

Short-term borrowings
Income taxes payable

138,513
2,781

124,033
665

Provision for bonuses
Other current liabilities

2,020
5,500

1,737
4,164

Total current liabilities

595,610501,400

Non-current liabilities
Long-term borrowings

11,802

12,508

7,274

5,911

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

217

6,407

6,299

Other noncurrent liabilities

4,163

3,804

Total non-current liabilities

29,85528,741

Reserve for financial instruments transaction liabilities

1,241

1,241

Total reserves under special laws

1,241

1,241

626,706

531,382

Share capital
Capital surplus

18,58923,84818,58925,365Retained earnings
Treasury shares

120,984(3,733)

117,963(1,726)

Total shareholders' equity

159,689

160,191

6,466

4,736

401
477

401
1,172

Reserves under special laws

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

834

715

8,179

7,026

Share acquisition rights

463

421

Non-controlling interests

21,52817,431

Total net assets

189,860

185,070

816,567

716,453

Total liabilities and net assets

4Consolidated statement of income (cumulative) and consolidated statement of comprehensive income(cumulative)
Consolidated statement of income (cumulative)(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Operating revenue
Commission received
Brokerage commission

23,106
9,695

21,905
7,697

Commission for underwriting, secondary distribution andsolicitation for selling and others for professional investors

399

206

Fees for offering, secondary distribution and solicitationfor selling and others for professional investors

5,337

6,219

Other commission received
Net trading income

7,674
12,152

7,782
10,015

Financial revenue
Other operating revenue

1,095
497

1,082
474

Total operating revenue

36,85233,477

Financial expenses

581

720

Net operating revenue

36,27132,756

Selling, general and administrative expenses

33,452

33,765

Trading related expenses
Personnel expenses

5,731
16,568

5,668
16,693

Real estate expenses
Office expenses

4,216
3,099

4,009
3,790

Depreciation
Taxes and dues

1,477
568

1,399549

Provision of allowance for doubtful accounts
Other(1)1,791(5)1,660Operating profit (loss)

2,818(1,009)

Non-operating income
Dividend income

1,115
747

895
712

32
147

20
100

189
71

61
103

Interest expenses
Loss on valuation of investment securities

21121432

Loss on sale and retirement of non-current assets
Settlement payments

224

1223

Other

1020

3,862(216)Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Non-operating expenses

Ordinary profit (loss)

5(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Extraordinary income
Gain on sale of investment securities
Gain on sales of investments in capital of subsidiaries and289

275

93–

10384

275

Impairment losses
Loss on sale of investment securities

250–
26

Loss on valuation of investment securities

4450

Total extraordinary losses

7077

Profit (loss) before income taxes

4,176

(18)

Income taxes - current
Income taxes - deferred

1,068
374

89(201)

Total income taxes

1,442(111)Profit2,734

93237

61

2,496

31

associatesReversal of reserve for financial instruments transaction
liabilities
Total extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Profit2,734

93

Other comprehensive income
Valuation difference on available-for-sale securities

2,452(2,488)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

36(157)695(120)32(112)2,363(2,025)

5,098(1,931)

4,386(1,121)

711

(810)

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7