Translation
The Okasan Securities Group Inc. and its subsidiaries (the “Group”) Notice: This document is an excerpt translation of theoriginal 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, 2023
(Based on Japanese GAAP)
April 27, 2023
Company name: OKASAN SECURITIES GROUP INC.
Stock exchange listing: Tokyo, Nagoya
Stock code: 8609
URL: https://www.okasan.jp/
Representative: SHINSHIBA Hiroyuki, President
Inquiries: MIYAZAKI Nobuyuki, Senior General Manager, Treasury Planning Dept.
Phone: +81-3-3272-2222
Scheduled date of ordinary general meeting of shareholders: June 29, 2023
Scheduled date to file Securities Report: June 30, 2023
Scheduled date to commence dividend payments: June 8, 2023
Preparation of supplementary material on financial results: Yes
Holding of financial results meeting: 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, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results(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
Year ended% Millions of yen%% Millions of yen%%
March 31, 2023

66,551(10.0)

64,902(10.8)(1,034)–421(93.9)

529(94.7)March 31, 2022
73,949–72,769
–
5,148
–
6,898
(7.1)
10,073
67.4(Note) Comprehensive income:Year ended March 31, 2023: ¥1,091 million [(56.4)%]
Year ended March 31, 2022: ¥2,504 million [(83.1)%]
Operating
Profit attributable toOrdinary profit/total
Diluted earnings per
profit/Operating
Earnings per shareowners ofassetssharerevenueparent/equity
Year ended
Yen
Yen
%
%
%
2.59
2.58
0.3
0.0
–
March 31, 2023
50.89
50.60
6.0
0.9
7.0
March 31, 2022
(Reference) Share of profit or loss of entities accounted for using equity method: Year ended March 31, 2023: ¥67 million
Year ended March 31, 2022: ¥32 million(Note) Effective from the year ended March 31, 2023, the Okasan Securities Group Inc. and its subsidiaries (the “Group”) has changed its methodof presentation, and figures in the “consolidated operating results” for the year ended March 31, 2022 have been restated to reflect thischange. The year-on-year changes for the year ended March 31, 2022 in “operating revenue,” “net operating revenue,” and “operating
profit” are not shown due to this change.
(2) Consolidated financial position
Total assets
Millions of yen
As of March 31, 2023
876,057
As of March 31, 2022
816,567(Reference) Equity: As of March 31, 2023: ¥173,017 million
As of March 31, 2022: ¥167,868 million

Net assets
Millions of yen
185,638
189,860

1Equity ratio

Net assets per share
%
19.7
20.6

Yen
843.45847.85

(3) Consolidated cash flows

Year ended
March 31, 2023
March 31, 2022

Cash flows fromoperating activities
Millions of yen(1,359)
ሺ4,200)Cash flows frominvesting activities
Millions of yen
1,667
7,041

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
16,58484,037
13,26479,7892. Cash dividends
Annual dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end
Yen

Yen

Yen

Ratio ofFiscalyear-end

Dividend
Total cash
payout ratio dividends to net
dividends (Consolidated)assets

Total(Consolidated)

Yen

Yen

Year ended March 31, 2022
–
0.00
–
15.00
Year ended March 31, 2023
–
0.00
–
20.00
Year ending March 31, 2024––––
(Forecast)(Note) The dividend forecast for the fiscal year ending March 31, 2024 is undecided.

15.00
20.00

Millions of yen

3,002
4,102

–

%

%

29.5
772.2

1.8
2.4

–

3. Consolidated financial results forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 - March 31, 2024)
The Group operates principally in the financial instruments business, and its financial results are likely to be affected by market fluctuations. Becauseof the nature of its business and the consequential difficulty in predicting its future performance, the Group does not disclose forecasts of financial
results.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation): None
(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: Yes
Changes in accounting policies due to other reasons: Yes
Changes in accounting estimates: None
Restatement of prior period financial statements: None
(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, 2023
231,217,073 shares As of March 31, 2022
Number of treasury shares at the end of the period
As of March 31, 2023
26,086,296 shares As of March 31, 2022
Average number of shares outstanding during the period
Year ended March 31, 2023
204,269,184 shares Year ended March 31, 20222

208,214,969 shares
10,221,299 shares
197,948,096 shares

(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)
Operating revenue
Operating profit
Ordinary profit
ProfitYear ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
March 31, 2023

26,848240.8

22,691

482.5

23,350439.1

24,179293.9March 31, 2022

7,877

40.1

3,895

102.0

4,331

84.4

6,137

–

Earnings per share
Year ended

Diluted earnings per share

Yen
117.63
30.67

March 31, 2023
March 31, 2022

Yen
117.01
30.50(2) Non-consolidated financial position
Total assets
Millions of yen
As of March 31, 2023
131,685
As of March 31, 2022
96,990(Reference) Equity: As of March 31, 2023: ¥111,973 million
As of March 31, 2022: ¥75,298 million

Net assets
Millions of yen
112,395
75,761Equity ratio

Net assets per share
%
85.0
77.6

Yen
545.87376.20* These consolidated financial results are outside the scope of audit procedures by certified public accountants or an audit firm.
* Explanation of the proper use of financial results forecasts and other notes
As stated in “3. Consolidated financial results forecasts for the fiscal year ending March 31, 2024,” because of the difficulty inpredicting future performance, the dividend forecast for the fiscal year ending March 31, 2024 is undecided.

3

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

As of March 31, 2023

86,94690,87487,7603,114
227,666
227,583
83
8,665
63,432
54,27888,46095,397
92,1503,247
240,344
239,927417–
90,76883,514

9,154

7,253

228,480–
228,480
1,263
18,596
85
107
4,060
2,500
2,421
(16)

234,769
4
234,764
247
21,618
16
110
3,482
1,189
8,854
(30)

Total current assets
Non-current assets

735,086785,227

Property, plant and equipment
Buildings, net
Equipment

18,071

16,9915,189
1,186
10,772
785
137
4,098
3,076
1,022
59,31051,326
4,110
13
2,534
657
1,562
(893)

4,781
1,075
10,623
511
–
9,224
8,616
608
64,613
57,663
3,610
11
2,542
204
1,468
(887)

AssetsCurrent assets
Cash and deposits
Segregated deposits
Segregated deposits for customers
Other segregated deposits
Trading products
Trading securities and other
Derivatives
Trade date accrual
Margin transaction assets
Margin loans
Cash collateral provided for securities borrowed in
margin transactions
Loans secured by securities
Cash collateral provided for securities borrowed
Securities purchased under resale agreements
Advances paid
Short-term guarantee deposits
Accounts for non-delivered securities and others
Short-term loans receivable
Accrued revenue
Securities
Other current assets
Allowance for doubtful accounts

Land
Lease assets, net
Construction in progress
Intangible assets
Software
Other
Investments and other assets
Investment securities
Long-term guarantee deposits
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total non-current assets
Total assets

481,48090,829816,567

876,057(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Trading products
Trading securities and other
Derivatives
Trade date accrual
Margin transaction liabilities
Margin borrowings
Cash received for securities sold in margin transactions

225,410225,361

238,809
238,78648–

22
24,31425,421

24,612

14,09813,482

11,323

11,12997,518

108,711

1,518
96,0007,711
101,000

Deposits received

61,42360,174

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

37,002

43,6691732

Short-term borrowings

138,513

152,897

Income taxes payable

2,781

457

Provision for bonuses

2,020

1,819

Other current liabilities

5,500

4,519

Total current liabilities
Non-current liabilities

595,610660,017Long-term borrowings

11,802

10,000

Lease liabilities
Deferred tax liabilities for land revaluation
Deferred tax liabilities

639

306

1,457
7,274

1,527
8,855

208

209
5,798

Borrowings secured by securities
Cash collateral received for securities lent
Securities sold under repurchase agreements

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

6,407

Other noncurrent liabilities

2,067

2,455

Total non-current liabilities
Reserves under special laws

29,855

29,153

1,241

1,247

Reserve for financial instruments transaction liabilities
Total reserves under special laws
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total 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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

1,241

1,247

626,706

690,418

18,58923,848120,984(3,733)
159,689

18,58937,273
118,548(11,470)
162,940

6,466
401
477
834
8,179
463
21,528
189,860
816,567

8,039
330
816
890
10,076421
12,199185,638
876,057

Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2022
Operating revenue
Commission received
Brokerage commission
Commission for underwriting, secondary
distribution and solicitation for selling and othersfor professional investors
Fees for offering, secondary distribution andsolicitation for selling and others for professional
investors
Other commission received
Net trading income
Financial revenue
Other operating revenue
Total operating revenue
Financial expenses
Net operating revenue
Selling, general and administrative expenses
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Provision of allowance for doubtful accounts
Other
Operating profit (loss)
Non-operating income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Loss on sale and retirement of non-current assets
Loss on sale of receivables
Share issuance costs
Settlement payments
Other
Ordinary profit

6

Fiscal year ended
March 31, 2023

46,59818,966

41,11916,163

1,106

615

11,005

10,70915,52024,193
2,180
97873,9491,180
72,76967,621
11,60632,978
8,195
7,039
2,949
1,323
40
3,487
5,148
1,946
1,570

13,631
21,9472,453
1,030
66,551
1,649
64,90265,936
10,97932,465
7,920
8,014
2,694
1,096
13
2,751
(1,034)
1,687
1,481

32

67

343
195
38
20
54
33
–
4
44
6,898

138
231
28
56
35
–
35
23
52
421

(Millions of yen)
Fiscal year ended
March 31, 2022
Extraordinary income
Gain on change in equity
Gain on sale of investment securities
Gain on sales of investments in capital of subsidiaries
and associates
Total extraordinary income
Extraordinary losses
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 before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

Fiscal year ended
March 31, 2023

–
9,585

2,771
317

93

–

9,679

3,089

1,092
8
114
4

82
28
359
–

3

6

1,223
15,354
4,134
119
4,254
11,1001,027
10,073

476
3,034
326
2,120
2,446
587
57
529

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

Fiscal year ended
March 31, 2023

11,100587(8,515)
–
363
(334)

257
(70)
338
44

(110)

(66)

(8,596)
2,504

503
1,091

2,832

2,427

(328)

(1,336)

Consolidated statement of changes in equity
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at
beginning ofperiod

Capital surplus

18,589Changes during
periodDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership
interest of parent
due totransactions with
non-controllinginterests
Changes byshare exchanges
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
periodTotal shareholders’equityRetained earnings

Treasury shares

113,877(3,796)

23,841

7

152,512(2,963)(2,963)

10,073

10,073

(2)

(1)

(1)

63

68

–

–

–

7

7,106

62

7,176

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

159,689

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at
beginning of period
Changes during
period13,739

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

401

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive

Shareacquisitionrights

Noncontrollinginterests

422

21,948income114

1,165

15,420

Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership
interest of parent
due totransactions with
non-controllinginterests
Changes byshare exchanges
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
periodTotal net assets

190,304(2,963)
10,073(1)
68––(7,273)

–

363

(331)

(7,240)41(420)(7,620)(7,273)

–

363

(331)

(7,240)

41

(420)

(443)

6,466

401

477

834

8,179

463

21,528

189,860

9

For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Share capital
Balance at
beginning ofperiod

Capital surplus

18,589Changes during
periodDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership
interest of parent
due totransactions with
non-controllinginterests
Changes byshare exchanges
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
periodRetained earnings

23,848120,984

Treasury shares

Total shareholders’equity(3,733)

159,689(2,966)(2,966)529

529(9,775)(9,775)

(308)

390

82

3,728

(64)

3,663

10,003

1,713

11,717–

13,424(2,436)(7,736)

3,251

18,58937,273

118,548(11,470)

162,940

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at
beginning of period
Changes during
period6,466

Revaluation
reserve for
land
401

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive

Shareacquisitionrights

Noncontrollinginterests

Total net assets

463

21,528

189,860

income

477

834

8,179

Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership
interest of parent
due totransactions with
non-controllinginterests
Changes byshare exchanges
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period(2,966)529(9,775)82

3,663

11,717
1,573

(70)

338

55

1,897

(42)

(9,329)(7,473)

1,573

(70)

338

55

1,897

(42)

(9,329)(4,221)

8,039

330

816

890

10,076421

12,199185,63810

Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
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
Loss (gain) on sale and retirement of property, plant andequipment
Loss (gain) on sale and retirement of intangible assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investments in capital ofsubsidiaries and associates
Loss on valuation of golf club membership
Decrease (increase) in cash segregated as deposits forcustomers
Decrease (increase) in trading products - assets(liabilities)
Decrease/increase in margin transaction assets/liabilities
Decrease/increase in loans/borrowings secured by
securities
Decrease (increase) in advances paid
Increase (decrease) in deposits received
Decrease (increase) in short-term guarantee deposits
Increase (decrease) in guarantee deposits received
Decrease (increase) in short-term loans receivable
Other, net

Fiscal year ended
March 31, 2023

15,354
2,949
1,092
(601)
(40)

3,034
2,697
82
22
(189)

(13)

6

(40)
74

(404)
(7)

3

6

(3,752)
1,219(3,945)
1,677

25

5

24
(9,581)
114

17
(298)
89

(93)

–

4

–

6,870

(4,390)(48,874)

33,701

10,361(24,214)42,397

4,902

(175)
(6,111)(7,787)(5,196)34(2,434)

1,016(9,554)(3,021)5,781(2)(2,240)Subtotal(4,179)4,774Interest and dividends received
Interest paid
Income taxes refund (paid)

3,566(1,210)(2,378)3,946(1,654)(8,425)

Net cash provided by (used in) operating activities(4,200)(1,359)11

(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities

–
–
(674)
18
(1,535)(1,354)
10,838(1,000)
2,500
(295)
304
(7,490)(1,292)857

Proceeds from sales of investments in capital ofsubsidiaries and associates
Proceed for acquisition of businesses
Other, net

140

–

–
(391)

5,084
2,999

Net cash provided by (used in) investing activities

7,041

1,667

16,902700(783)

11,7432,000(1,188)

–

9,965

(1)

(2,500)–40(2,963)(91)(2,966)
(91)

–

(1)

(498)

(416)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Income from capital increase of consolidated
subsidiaries
Purchase of treasury shares
Proceeds from sales of shares of parent held bysubsidiaries
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) financing activities

13,264

16,584

Effect of exchange rate change on cash and cash equivalents

1,166

(8)

Net increase (decrease) in cash and cash equivalents

17,271

16,883

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

62,517

79,789–(12,635)

79,78984,03712