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 Year Ended March 31, 2022
(Based on Japanese GAAP)
April 27, 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 of ordinary general meeting of shareholders:

SHINSHIBA Hiroyuki
MIYAZAKI Nobuyuki

TEL03-3272-2222

June 29, 2022

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

June 30, 2022
June 8, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Operating revenue
Millions of yen

Year ended March 31, 2022
Year ended March 31, 2021

73,77867,259% Millions of yen
9.7
72,5973.466,109

Earnings per share

Profit attributable toOrdinary profit/total
owners ofassets
parent/equity
Yen
%%
50.60
6.0
0.9
30.26
3.7
1.2

Diluted earnings pershare

Yen
50.89
30.42

Year ended March 31, 2022
Year ended March 31, 2021

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
9.8
4,976
(2.5)
6,898(7.1)
10,073 67.4
3.2
5,106 146.3
7,426 35.3
6,017 65.9

Net operating
revenue

Operatingprofit/Operating
revenue%
6.7
7.6(2) Consolidated financial position
Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
816,567
783,440

Millions of yen
189,860
190,304

Cash flows fromoperating activities
Millions of yen(4,200)(40,941)

Cash flows frominvesting activities
Millions of yen
7,041(3,717)

Net assets per share%
20.6
21.4

Yen
847.85848.87(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
13,26479,78942,60462,517

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)TotalYen

Yen

Yen

Yen

Yen

Millions of yen%%––

0.00
0.00

––

15.00
15.00

15.00
15.00

2,999
3,002

49.3
29.5

1.8
1.8

–––––

1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

208,214,969 shares As of March 31, 2021

208,214,969 shares

Number of treasury shares at the end of the period
As of March 31, 2022

10,221,299 shares As of March 31, 2021

10,382,959 shares

197,948,096 shares Year ended March 31, 2021

197,826,916 sharesAverage number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Segregated deposits

69,01396,687

86,94690,874

94,6302,057

87,7603,114

212,318
212,312

227,666
227,583

6–

83
8,665

66,79260,15063,432
54,278

6,642

9,154

Loans secured by securities
Securities purchased under resale agreements

223,361
223,361

228,480
228,480

Advances paid
Short-term guarantee deposits

1,086
10,808

1,263
18,596–14185107

Accrued revenue
Securities

3,718
2,509

4,060
2,500

Other current assets
Allowance for doubtful accounts

2,578(0)2,421(16)689,017735,086

Segregated deposits for customers
Other segregated deposits
Trading products
Trading securities and otherDerivatives
Trade date accrual
Margin transaction assets
Margin loans
Cash collateral provided for securities borrowed in
margin transactions

Accounts for non-delivered securities and others
Short-term loans receivable

Total current assets
Non-current assets
Property, plant and equipment

18,355

18,071

Buildings, net
Equipment

5,430
1,139

5,189
1,186

Land
Lease assets, net

10,797987

10,772
785

0
4,624

137
4,098

3,820
803

3,076
1,022

71,443
63,68059,31051,326Long-term guarantee deposits
Long-term loans receivable

4,278
18

4,110
13

Retirement benefit asset
Deferred tax assets

2,608
63

2,534
657

Other
Allowance for doubtful accounts

2,303(1,510)

1,562
(893)

94,422

81,480783,440

816,567

Construction in progress
Intangible assets
Software
Other
Investments and other assetsInvestment securities

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Trading products

157,593

225,410

157,56032

225,361
48

92,676
18,442–
25,421

8,268
10,17314,098
11,323

Borrowings secured by securities
Cash collateral received for securities lent

50,003848

97,518
1,518

Securities sold under repurchase agreements
Deposits received

49,15467,29996,00061,423

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

42,1982

37,002
17

Short-term borrowings
Income taxes payable

123,559
1,206

138,513
2,781

Provision for bonuses
Other current liabilities

2,060
5,332

2,020
5,500

Total current liabilities

560,375

595,610Non-current liabilities
Long-term borrowings

9,900

11,802

Lease liabilities
Deferred tax liabilities for land revaluation

807
1,457

639
1,457

Deferred tax liabilities
Provision for retirement benefits for directors (and other

10,428

7,274

Trading securities and otherDerivatives
Trade date accrual
Margin transaction liabilities
Margin borrowings
Cash received for securities sold in margin transactionsofficers)
Retirement benefit liability

221

208

6,447

6,407

Other noncurrent liabilities

2,259

2,067

Total non-current liabilities

31,52329,855Reserve for financial instruments transaction liabilities

1,237

1,241

Total reserves under special laws

1,237

1,241

593,136

626,706

Reserves under special laws

Total liabilities

4

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Net assets
Shareholders' equity
Share capital

18,58918,589

Capital surplus
Retained earnings23,841
113,877

23,848120,984

Treasury shares(3,796)(3,733)

Total shareholders' equity

152,512

159,689

Valuation difference on available-for-sale securities
Revaluation reserve for land

13,739
401

6,466
401

Foreign currency translation adjustment
Remeasurements of defined benefit plans

114
1,165

477
834

Total accumulated other comprehensive income

15,4208,179

Share acquisition rights
Non-controlling interests

422
21,948463
21,528

Total net assets

190,304

189,860

783,440

816,567

Accumulated other comprehensive income

Total liabilities and net assets5

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Operating revenue
Commission received
Brokerage commission

43,85022,576

46,59818,966

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

434

1,106

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

6,937

11,005

Other commission received
Net trading income

13,902
20,767

15,52024,021

Financial revenue
Other operating revenue

1,723
918

2,180
978

Total operating revenue

67,25973,778Financial expenses

1,150

1,180

Net operating revenue

66,10972,597

Selling, general and administrative expenses

61,002

67,621

Trading related expenses
Personnel expenses

10,43430,891

11,60632,978

Real estate expenses
Office expenses

7,458
4,970

8,195
7,039

Depreciation
Taxes and dues

3,188
1,017

2,949
1,323

Provision of allowance for doubtful accounts
Other(0)
3,042

40
3,487

Operating profit

5,106

4,976

Non-operating income
Dividend income

2,499
1,061

2,118
1,570

873
299

32
195

264
178

319
195

Interest expenses
Loss on valuation of investment securities

44373820

Loss on sale and retirement of non-current assets
Compensation expenses

1536540

Loss on sale of receivables
Settlement payments

–2533
4

Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Non-operating expenses

Other

1944

Ordinary profit

7,426

6,898

6

(Millions of yen)

Extraordinary income
Gain on sale of investment securities

Fiscal year endedFiscal year ended

March 31, 2021

March 31, 2022
67

9,585–

93

7,108–

44–

7,220

9,679

4,394
1,810–
1,092

35
232

8114

–

4–

3

6,473

1,223

Profit before income taxes

8,174

15,354

Income taxes - current
Income taxes - deferred

1,613
224

4,134
119

Total income taxes

1,837

4,254

Profit6,336

11,100

319

1,027

6,017

10,073Gain on sales of investments in capital of subsidaries andassociates
Gain on bargain purchase
Reversal of reserve for financial instruments transaction
liabilities
Total extraordinary incomeExtraordinary losses
Loss on step acquisitions
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on valuation of golf club membership
Provision of reserve for financial instruments transaction
liabilities
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent7

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
6,336

11,100

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

7,149
52(8,515)
363

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted

1,044(334)239(110)

8,485(8,596)

Comprehensive income

14,822

2,504

Comprehensive income attributable toComprehensive income attributable to owners of parent

13,857

2,832964(328)for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

8Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance atbeginning ofperiod

Capital surplus

18,589Retained earnings

23,622

109,836

Total shareholders'equityTreasury shares(3,814)

148,234

Changes during
periodDividends ofsurplus(1,975)(1,975)

Profitattributable toowners of parent

6,017

6,017

Purchase oftreasury shares
Disposal oftreasury shares

3

Change inownership
interest of parent
due totransactions with
non-controllinginterests

215

(0)

(0)

(0)

1921(0)214

Net changes in
items other thanshareholders'equityTotal changes
during period
Balance at end ofperiod

–

218

4,040

17

4,277

18,58923,841

113,877(3,796)

152,5129Accumulated other comprehensive income

Balance at
beginning of
periodValuationdifference on
available-forsale securities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

6,991

401

62

Remeasurementsof defined
benefit plans

125

Total
accumulated
othercomprehensive
income7,579

Shareacquisitionrights

Noncontrollinginterests

Total net assets

358

8,274

164,447

Changes during
periodDividends ofsurplus(1,975)

Profitattributable toowners of parent

6,017

Purchase oftreasury shares(0)

Disposal oftreasury shares

21

Change inownership
interest of parent
due totransactions withnon-controllinginterests

214

Net changes in
items other thanshareholders'equity

6,747

–

52

1,040

7,840

63

13,674

21,578

Total changes
during period

6,747

–

52

1,040

7,840

63

13,67425,856

Balance at end ofperiod

13,739

401

114

1,165

15,420422

21,948190,304

10

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at
beginning ofperiod

Capital surplus

18,589Retained earnings

23,841

113,877

Total shareholders'equityTreasury shares(3,796)

152,512

Changes during
periodDividends ofsurplus(2,963)(2,963)

Profitattributable toowners of parent

10,073

10,073Purchase oftreasury shares
Disposal oftreasury shares

7(2)

(1)

(1)

63

68

Change inownership
interest of parent
due totransactions withnon-controllinginterests–

Net changes in
items other thanshareholders'equityTotal changes
during period
Balance at end ofperiod

–

7

7,106

62

7,176

18,58923,848120,984(3,733)

159,689

11Accumulated other comprehensive income

Balance atbeginning ofperiod

Valuationdifference on
available-forsale securities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

13,739401

114

Remeasurementsof defined
benefit plans

1,165

Total
accumulated
othercomprehensive
income15,420Share
acquisitionrights

Noncontrollinginterests

Total net assets

422

21,948190,304

Changes during
periodDividends ofsurplus(2,963)

Profitattributable toowners of parent

10,073Purchase oftreasury shares(1)

Disposal oftreasury shares

68

Change inownershipinterest of parentdue totransactions with
non-controllinginterests–

Net changes initems other thanshareholders'equity(7,273)

–

363

(331)

(7,240)41(420)(7,620)Total changes
during period(7,273)

–363

(331)

(7,240)41(420)(443)

Balance at end ofperiod

6,466

401

477

834

8,179

463

21,528

189,860

12

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
8,174

15,354

3,188
1,810

2,949
1,092

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(0)100(601)(40)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

(30)

(13)

132
(1,371)

(40)
74

(44)

3(2,789)
1,194(3,752)
1,219(741)

(800)

1125

Depreciation
Impairment losses

Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in reserve for financial instruments
transaction liabilities
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of property, plant andequipment
Loss (gain) on sale and retirement of intangible assets

224(39)232(9,581)
114–(93)

Loss on valuation of golf club membership
Gain on bargain purchase–(7,108)

4–

Loss (gain) on step acquisitions
Decrease (increase) in cash segregated as deposits for

4,394

–

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss(gain) on sales of investments in capital of subsidaries
and associatescustomers
Decrease (increase) in trading products - assets (liabilities)

4,400

6,870

89,015(48,874)

Decrease/increase in margin transaction assets/liabilities
Decrease/increase in loans/borrowings secured by securities(15,320)(145,000)

10,361
42,397

Decrease (increase) in advances paid
Increase (decrease) in deposits received

183
16,931(175)(6,111)

Decrease (increase) in short-term guarantee deposits
Increase (decrease) in guarantee deposits received

(625)
6,105

(7,787)(5,196)

Decrease (increase) in short-term loans receivableOther, net(7)(4,072)34(1,634)

Subtotal(41,273)(4,179)Interest and dividends received
Interest paid

2,679
(1,173)

3,566(1,210)

Income taxes refund (paid)(1,172)(2,378)Net cash provided by (used in) operating activities(40,941)(4,200)13

(Millions of yen)

Cash flows from investing activities
Purchase of property, plant and equipment

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
(805)

(674)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets0(2,050)

18(1,535)

Purchase of investment securities
Proceeds from sale of investment securities(2,088)766(1,354)
10,838Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

125–

Proceeds from sales of investments in capital of subsidaries
and associates

–

140

333

(391)

(3,717)

7,041

44,969500

16,902
700

(226)
(0)

(783)
(1)

(1,975)(10)(2,963)
(91)

(172)

–

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(479)

(498)

42,604

13,264805

1,166

Net increase (decrease) in cash and cash equivalents(1,249)17,271

Cash and cash equivalents at beginning of period

63,76762,517

Cash and cash equivalents at end of period

62,517

79,78914