Disclaimer

This document is an English-language translation of the non-consolidated financial summary of thefinancial results for the first quarter of the fiscal year ending March 31, 2019(from April 2018 to March2019). This summary was prepared originally in Japanese in accordance with generally accepted
accounting principles in Japan (Japanese GAAP). If there are discrepancies between the English
translation and the original document in Japanese, the Japanese version will take precedence.

kabu.com Securities Co., Ltd.

July 25, 2018
Non-Consolidated Financial Summary under Japanese GAAPFor the 1st Quarter (1Q) of the Fiscal Year Ending March 31, 2019
Company name:
Listing:
Code number:
Representative:
Contact:

kabu.com Securities Co., Ltd.
1st section of the Tokyo Stock Exchange
8703
Masakatsu Saito, CEO
Motoo Matsumiya, Manager of Business Administration

1.Financial summary (April 1, 2018 to June 30, 2018)(1)Operating results
Operating
Net operating
revenues
revenues
millions of yen% millions of yen

URL: https://kabu.com/

E-mail: ir@kabu.com(%：change year-on-year)
Operatingincome

Ordinaryincome% millions of yen% millions of yen

Net income% millions of yen%1Q of fiscal year ending
March 31,2019

5,776(3.2)

4,937

4.2

2,128

78.9

2,177

80.2

1,544

8.5

1Q of fiscal year ended
March 31,2018

5,965

6.3

4,738(3.2)

1,189(40.6)

1,208 (40.5)

1,423(23.5)

Earnings
per share

Fully diluted
earnings per share

ROEyenyen%

1Q of fiscal year ending
March 31,2019

4.63

4.63

14.3

1Q of fiscal year ended
March 31,2018

4.27

4.27

13.5

(2)Financial position
Total assets

Net Assets

Capital adequacy
ratio

Equity ratio

millions of yen

millions of yen%%

June 30, 2018

931,935

41,875

4.5

398.7

March 31, 2018

1,005,557

44,753

4.4

371.7

2.Dividends
1Q
Fiscal year
ended March 2018-

Fiscal year
ending March 2019-

Fiscal year
ending March 2019

Dividends per share
3Q

2Q
6.00

-

4Q-

--

Total
yen

yen

13.00

19.00

-(Forecasts)

3.Forecast for the Business Results of Full Fiscal Year (April 1, 2018 to March 31, 2019)
The Company’s principal business is acting as a broker in transactions in financial instruments, mainly securities. Since
this business is strongly influenced by conditions in equity and other financial markets, forecasting future performance isextremely difficult. Accordingly the Company does not disclose forecasts of its performance. In place of such forecasts,
the Company discloses its quarterly financial results as quickly as possible. The Company also provides monthly
information of operating revenues, the number of customer accounts, equity trading value, and other operating statistics
that have a major impact on the Company’s performance.

(1)Non-Consolidated Balance Sheets(Unit : Millions of Yen)
As ofAs ofMarch 31, 2018
June 30, 2018
AssetsCurrent Assets
Cash and bank deposits
Cash held in trust
Margin account assets
Loans receivable from customers
Cash deposited as collateral for securities borrowed
from securities finance companies
Advances paid
Cash paid for offering
Short term guarantee deposits
Prepaid expenses
Accrued income
Other
Total current assets
Fixed Assets
Tangible fixed assets
Intangible fixed assets
Investment and others
Investment securities
Long term guarantee deposits
Long-term advances paid
Deferred income tax assets
OtherAllowance for doubtful accounts
Total fixed assets
Total Assets

88,361495,707
327,830
204,480

89,948507,128
247,864
194,292

123,350

53,572

202
424
71,535235
2,330
10,368996,996

337
452
64,416566
2,303
10,380923,399

1,013
4,297
3,249
2,330
419
530
297
153
(482)
8,560
1,005,557

985
4,427
3,123
2,237
440
501
254
150
(462)
8,535
931,935

(Unit : Millions of Yen)
As of
As of
March 31, 2018
June 30, 2018
Liabilities
Current liabilities
Margin account liabilities
Loans from securities finance companies
Proceeds of securities lent on customers' accountPayables on collateralized securities transactions
Deposits received
Guarantee money received
Short-term borrowings
Accounts payable
Accrued expenses
Accrued income taxes
Reserve for bonuses
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Total long-term liabilities
Statutory reserves
Reserve for financial product transaction liabilities
Total statutory reserves
Total liabilities
Net assets
Shareholders' equity
Common stock
Additional paid in capital
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Net unrealized gain on investment securities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets

173,736
42,393
131,342
119,586
277,431249,135
104,000
977
1,186
1,546
－
1,037
928,637

93,34924,294
69,05576,676
303,010
278,917103,000
396
746
647
34
1,167
857,947

30,00030,00030,00030,0002,166
2,166
960,803

2,112
2,112
890,060

7,196
11,91325,730(2,093)42,747

7,196
11,913
22,942(2,093)39,959

1,986
1,986
19
44,753
1,005,557

1,8881,888
27
41,875
931,935

(2)Non-Consolidated Statements of Income

Operating revenues
Commissions
Brokerage commissions
Fees for offering, secondary distribution and solicitation
for selling and other services for professional investors

Other
Net gain on trading
Financial revenues
Other sales
Total operating revenues
Financial expenses
Cost of sales
Net operating revenues
Selling, general and administrative expenses
Transaction related expenses
Employment cost
Facilities and rentals
Outsourcing and office supplies
Depreciation and amortization
Duties and taxes other than income taxes
OtherTotal selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Special profits
Reversal of reserve for financial products transaction liabilities
Gain on sales of investment securities
Total special profits
Income before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
Net income

1Q of fiscal year
ended March 2018
(April 1 to June 30, 2017)(Unit : Millions of Yen)
1Q of fiscal year
ending March 2019
(April 1 to June 30, 2018)

2,496
2,047

2,270
1,8503338415
224
2,898
346
5,965
891
335
4,738

381
292
3,141
71
5,776
793
45
4,937

1,407
369
600
252
738
112
68
3,548
1,189
37
19
1,208

1,086
407
525
234
369
106
78
2,808
2,128
48
0
2,177

59
797
857
2,065
611
29
641
1,423

53
－
53
2,230
599
86
686
1,544