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, 2011. 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 inJapanese, the Japanese version will take precedence.

kabu.com Securities Co., Ltd.

July 26, 2010
Non-Consolidated Financial Summary under Japanese GAAPFor the 1st Quarter (1Q) of the Fiscal Year Ending March 2011
Company name:
Listing:
Code number:
Representative:
Contact:

kabu.com Securities Co., Ltd.
1st section of the Tokyo Stock Exchange
8703
Masakatsu Saito, CEO
Takeshi Amemiya, CFO

1.Financial summary (April 1, 2010 to June 30, 2010)(1)Operating results
Operating
Net operating
revenues
revenues

URL: http://kabu.com

E-mail: ir@kabu.com(Unit : Millions of Yen)
Operatingincome

Ordinaryincome

Net income(% change year-on-year) (% change year-on-year) (% change year-on-year) (% change year-on-year) (% change year-on-year)

1Q of fiscal year
ending March 2011

4,042(5.9)

3,556(6.3)

1,394

1Q of fiscal year
ended March 2010

4,296(5.4)

3,794(8.4)

1,543 (15.2)

Fully diluted
earnings per share

Return on equityEarnings
per share

(9.7)

(Yen)

(Yen)

1Q of fiscal year
ending March 2011

* 5.81* 5.81

11.9%

1Q of fiscal year
ended March 2010

1,174.88

1,174.27

12.5%

1,397(9.0)

1,535 (17.7)

1,040(1.6)

1,057 (15.8)* Due to 200-for-1 stock split on April 1, 2010.
(2)Financial position
Equity ratio

Net assetsper share

Capital adequacy
ratio

Total assets

Net Assets(Millions of Yen)

(Millions of Yen)

June 30, 2010

363,727

34,037

9.4%

191.21520.9%March 31, 2010

389,292

35,664

9.2%

39,623.97

638.4%(Yen)(Unit : Yen)

2.Dividends
1Q

2Q

Dividends per share
3Q

Fiscal year
ended March 2010---

Fiscal year
ending March 2011

-

4Q

Total
2,000

2,000

3.Forecast for the Business Results of Full Fiscal Year (April 1, 2010 to March 31, 2011)
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 securities markets, forecasting future
performance is extremely 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 on fees and commissions, which account for a high percentage of operating
revenues, the number of customer accounts, new business contracts, and other operating statistics that have a major
impact on the Company’s performance. In addition, for the same reasons, the Company does not disclose forecasts
for dividends.

(1)Non-Consolidated Balance Sheets
As ofJune 30, 2010
AssetsCurrent Assets
Cash and bank deposits
Cash held in trust
Margin account assets
Loans receivable from customers
Cash deposited as collateral for securities
borrowedAdvances paid
Amount paid
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
Deferred income tax assets
Other
Allowance for doubtful accounts
Total fixed assets
Total Assets(Unit : Millions of Yen)
As ofMarch 31, 2010

26,794
195,122
112,406
109,593

53,182
217,507
90,336
79,553

2,813

10,782

182
320
20,266
368
1,364
909
357,735

34
343
19,417
200
1,232
734
382,990

803
1,698
3,489
1,967
405
910
933
(727)
5,991
363,727

794
1,748
3,758
2,100
421
1,002
954
(719)
6,301
389,292

June 30, 2010
Liabilities
Current liabilities
Margin account liabilities
Loans from securities finance companiesProceeds 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
Deferred tax liabilities
Income received in advanceAccrued employee bonuses
Accrued officers bonuses
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Other
Total long-term liabilities
Statutory reserves
Reserve for financial product transaction liabilities
Total statutory reserves
Total liabilities
Net assetsShareholders' 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
Total net assets
Total liabilities and net assets(Unit : Millions of Yen)
March 31, 2010

33,183
19,785
13,39813,342
104,518
117,688
38,000
156
502
552
218
18
10
12
221
308,426

73,056
46,71826,338
10,623
123,101
115,260
8,000
108
486
1,007
102
15
206
331,969

20,000457
20,45720,000470
20,470805805329,689

1,187
1,187
353,627

7,196
11,91324,113(9,613)33,6107,196
11,91324,872(8,715)35,267427
427
34,037363,727396
396
35,664389,292

(2)Non-Consolidated Statements of Income(Unit : Millions of Yen)
1Q of fiscal year
ending March 2011

1Q of fiscal year
ended March 2010

(April 1 to June 30, 2009) (April 1 to June 30, 2010)

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

2,988
2,520

2,536
2,006

2947

Other
Financial income
Total operating revenues
Financial expenses
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
Provision to allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Special profits
Reversal of reserve for financial product transactions
Reversal of allowance for doubtful accounts
Total special profits
Special losses
Valuation loss on investment securities

438
1,308
4,296
502
3,794

481
1,506
4,042
486
3,556

936
239
465
219
217
36
49
86
2,250
1,543
37
45
1,535

926
251
464
184
237
50
10
37
2,162
1,394
19
15
1,397

247
3250

381
3385

-

5

Loss on the effect of the adopting the accounting standard
regarding asset retirement obligations

-

13

1,786
675
53
728
1,057

19
1,763
536
186
722
1,040

Total special losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
Net income

(3)Non-Consolidated Statement of Income by Quarter (Quarterly transition)(Unit : Millions of Yen)
1Q of
2Q of
3Q of
4Q of
1Q of
FY 2010 FY2010 FY 2010 FY 2010 FY 2011
Operating revenues
Commissions
Brokerage commissions
Fees for offering, secondary distribution and solicitation
for selling and others for professional investors

Other
Financial income
Total operating revenues
Financial expenses
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
Provision to allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Special profits
Reversal of reserve for financial product transactions
Reversal of allowance for doubtful accounts
Profits on sales of investment securities
Total special profits
Special losses
Valuation loss on investment securities
Loss on disposal of fixed assets
Loss on the effect of the adopting the accounting standard
regarding asset retirement obligations

Total special losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
Net income

2,988
2,520

2,600
2,160

2,240
1,746

2,228
1,804

2,536
2,006

29

20

40

29

47

438
1,308
4,296
502
3,794

420
1,234
3,834
348
3,486

453
1,325
3,565
412
3,153

394
1,159
3,387
265
3,122

481
1,506
4,042
486
3,556

936
239
465
219
217
36
49
86
2,250
1,543
37
45
1,535

936
251
497
194
215
31
1
51
2,180
1,306
89
119
1,276

865
237
524
140
227
35
0
31
2,062
1,090
85
26
1,149871
229
535
180
254
26
0
32
2,129
992
46
96
942

926
251
464
184
237
50
10
37
2,162
1,394
19
15
1,397

247
3
250

2
247
47

4
134
138

381
3
385

---

28
88

5-----

13

1,786
675
53
728
1,057

1,278
543
(15)
527
751

1,197
414
80
494
703

116
965
436
(51)
384
580

19
1,763
536
186
722
1,040

(4)Monthly Business Data
Jan-10Feb-10Mar-10

Apr-10May-10Jun-10

Number of customer accounts *1 (at month-end)

693,240 696,509 700,162 703,038 705,680 708,753

Number of margin customer accounts *1 (at month-end)

70,971

71,50872,00772,43672,88073,341

Number of forward and option customer accounts *1 (at month-end)

28,05928,31928,60428,852

29,14229,366

Number of FX customer accounts *1 (at month-end)

31,01731,60932,19932,781

33,52434,027

Number of customers using stock lending service

13,043

12,933

11,696

13,197

13,243

13,288Average daily number of executed equity trades *2

43,93634,82539,721

49,24644,08832,910

Average daily number of executed cash trades *2, 3

22,39916,24518,802

24,376

21,951

15,215

Average daily number of executed margin trades *2

21,536

18,58020,91824,86922,137

17,964

Average value of equity trading (thousands of yen)

906

886

889

906

910

912

Average value of cash trading *3 (thousands of yen)

589

543

623

631

587

541

Average value of margin trading (thousands of yen)

1,236

1,186

1,129

1,176

1,230

1,232

Amount of customer assets *4 (at month-end) (millions of yen)

1,051,733 1,053,185 1,120,713 1,162,927 1,078,391 1,045,962

Margin trading balance *5 (at month-end) (millions of yen)

110,017 106,832 105,892 114,610 116,069 122,991

Amount of stock lending (at month-end) (millions of yen)

65,34164,70740,906

71,72465,826

63,121

Jul-09Aug-09Sep-09Oct-09

Nov-09Dec-09Number of customer accounts (at month-end)

677,303 679,668 682,289 684,895 687,469 690,015

Number of margin customer accounts (at month-end)

67,94868,367

68,941

69,48469,89570,430

Number of forward and option customer accounts (at month-end)

26,23926,496

26,821

27,21427,512

27,767

Number of FX customer accounts (at month-end)

28,07528,53029,166

29,63230,06830,478

Number of customer using lending stock service

12,24012,331

11,763

12,736

12,86812,902Average daily number of executed equity trades

44,00744,712

39,32435,90834,18335,993

Average daily number of executed cash trades

22,47623,207

20,52816,994

16,294

17,346

Average daily number of executed margin trades

21,53021,504

18,796

18,914

17,88818,646

Average trading value of equity trading

879

953

883

912

864

940

Average trading value of cash trading

589

665

600

590

546

620

Average trading value of margin trading

1,181

1,264

1,193

1,202

1,154

1,238

Amount of customer assets (at month-end) (millions of yen)

1,070,091 1,104,627 1,058,518 1,052,055 992,541 1,047,100

Margin trading balance (at month-end) (millions of yen)

100,922 106,232 104,995 110,044 105,682

99,110

Amount of lending stock (at month-end) (millions of yen)

67,97463,42469,73745,383

67,951

63,752*1 : The number of accounts includes corporate accounts.
*2 : The number of trades includes partially executed trades.
*3 : Cash trading includes odd-lot stocks (" Puchi Stock" ®) and transactions through “kabu.comPTS”, excluded institutional
investors.
*4 : Amount of customer assets is the value on a market price basis at month-end.
*5 : Margin trading balance is the value on a handover basis at month-end.

Jan-09

Feb-09Mar-09Apr-09

May-09Jun-09Number of customer accounts (at month-end)

660,482 663,099 665,922 668,746 671,397 674,659

Number of margin customer accounts (at month-end)

64,49565,01065,59966,23966,85767,516

Number of forward and option customer accounts (at month-end)

23,57024,146

24,64925,13925,501

25,906

Number of FX customer accounts (at month-end)

25,25925,79926,257

26,64327,16027,642

Number of customer using lending stock service

10,026

10,2799,524

11,01011,432

11,794

Average daily number of executed equity trades

40,81938,58440,92450,602

49,59556,621

Average daily number of executed cash trades

20,836

18,93920,50525,86825,98530,160

Average daily number of executed margin trades

19,982

19,644

20,41824,73323,60926,460

Average trading value of equity trading

794

772

787

844

865

876

Average trading value of cash trading

519

483

530

598

608

611

Average trading value of margin trading

1,081

1,052

1,045

1,101

1,147

1,177

Amount of customer assets (at month-end) (millions of yen)

861,221 836,728 871,377 942,579 1,009,237 1,062,916

Margin trading balance (at month-end) (millions of yen)

77,477

78,191

76,58281,89390,806 103,069

Amount of lending stock (at month-end) (millions of yen)

43,07542,831

26,074

51,821

58,193

61,960Jul-08Aug-08

Sep-08

Oct-08Nov-08Dec-08

Number of customer accounts (at month-end)

634,861 637,142 639,832 646,244 653,682 657,374

Number of margin customer accounts (at month-end)

61,28361,70862,16862,85463,37463,859Number of forward and option customer accounts (at month-end)

20,064

20,55621,14022,07822,58723,009Number of FX customer accounts (at month-end)

19,501

20,023

20,631

22,10023,26424,351

Number of customer using lending stock service

7,625

8,083

7,745

8,884

9,350

9,448

Average daily number of executed equity trades

36,107

32,84339,64453,30647,99540,919Average daily number of executed cash trades

17,24015,774

19,784

27,83524,84520,962Average daily number of executed margin trades

18,866

17,06819,85925,47023,15019,956

Average trading value of equity trading

1,117

1,025

997

820

790

774

Average trading value of cash trading

766

696

661

536

533

514

Average trading value of margin trading

1,439

1,328

1,332

1,129

1,065

1,047

Amount of customer assets (at month-end) (millions of yen)

1,098,568 1,052,318 959,586 848,207 862,628 885,529

Margin trading balance (at month-end) (millions of yen)

116,790 111,942 101,739

71,35572,29775,579Amount of lending stock (at month-end) (millions of yen)

50,137

39,20640,80439,922

51,71429,309