INVAST SECURITIES CO.,LTD.

Financial Highlights(Consolidated)
４ｔｈ Quarter, Fiscal Year ended March 31, 2018

Invast Securities Co., Ltd.

Contents

１．Summary of ４Q Financial Results
２．Annual Financial Results Summary
３．Policies on shareholder returns and dividends
４．Topics
５．Mission/Vision and Management Strategies

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2Summary of ４Q Financial Results（Jan.-Mar. 2018）

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Quarterly Financial Highlights（key points from ４Q results, fiscal year ended March 31, 2018）

Main takeaways from financial results of ４Q FY2018 (Jan-Mar 2018)

1.214 billion yen in operating revenues (+15.9% from the same quarter of the previousyear)••

Domestic financial service (INV) posted 887 million yen in net operating revenues (+21.8% from the samequarter of the previous year) and segment profit of 214 million yen (+573.8% year-on-year)
Overseas Financial Service (Australian subsidiary IFS) posted 304 million yen in net operating revenues (4.9% from the same quarter of the previous year), and segment profit of 72 million yen (-40.4% year-onyear)
 Trading profit was 924 million yen (+11.5% year-on-year); “TriAuto ETF” transaction volumes soared with highstock prices globally since the new year began, and subsidiary IFS showed stable performance Commissions earned by FX market “Click 365” increased to 172 million yen (+13.9% year-on-year)

900 million yen in sales, general and administrative expenses (+0.9% from thesame quarter of the previous year)••Advertising expenses increased (+17.6% year-on-year) compared to the same quarter of the previous year when
promotional activities were constrained
Depreciation decreased (-34.0% year-on-year) due to depreciation of client-related assets having been completed

287 million yen in operating income (+86.5% from the same quarter of the previousyear)

276 million yen in ordinary income (+100.7% year-on-year)
280 million yen in quarterly net income attributable to parent company
shareholders (+281.4% year-on-year)•Posted an extraordinary loss of 1 million yen from disposal of fixed assets

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved4Quarterly Summary

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

ChangevsPrevious
Quarter

Operating revenues

924

742

833

1,048

943

989

1,018

1,214

+19.2％+15.9％

Commissions earned(exchange FX, etc.)

217

162

180

151

146

147

139

172

+23.5％+13.9％

Trading profit and loss
(over-the-counter FX)

617

503

565

829

736

790

821

924

+12.6％+11.5％

Interest income

7556

11

1325

31

＋23.1％+396.3％

Other operating
revenues

8270

81

61

48

38

33

86

+161.7％+41.4％

Financial expenses

0201481726＋53.5％+2,430.8％

Net operating revenues

924

740

832

1,047938

981

1,001

1,188

+18.6％+13.5％

Selling, general andadministrative expenses

848

866

979

893

843

868895

900

+0.6％

+0.9％

Operating income (loss)

75

△126

△146

154

95

112

106

287

+171.0％+86.5％

Ordinary income (loss)

71

△128

△150137

98

108

91

276

+201.2％+100.7％

Income (loss) before
income taxes

77

△128

△12876

103

108

128

275

+113.4％+260.1％

Net income (loss)

52

△108

△13773

94

101

120

280

+132.3％+281.4％FY 3/17(Millions of yen)

FY 3/18

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

Year-onYearchange5

Quarterly Selling, general and administrative expenses

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

ChangevsPrevious
Quarter

848

866

979

893

843

868

895

900

+0.6％

+0.9％

Trading related expenses

212

245

327

208

177

201

234

234

+0.2％

+12.8％(Advertising expenses)

(112)

(154)

(223)

(96)

(83)

(116)

(137)

(114)

△17.3％+17.6％

Personnel expenses

233

211

227

243

247

254

252

264

+4.8％

+8.8％

Real estate expenses

270

282

301

307

291

291

296

300

+1.5％△2.3％(IT system expenses)

(224)

(234)

(246)

(248)

(236)

(231)

(232)

(230)

△1.0％

△7.5％

69656787△9.2％+39.3％

Depreciation expenses

888480

80

7880

7053

△24.1％△34.0％Tax and public charges

231721302621

24

24+2.0％△17.8％

Others1415131715

121015+50.0％△14.9％(Millions of yen)

Selling, general andadministrative expenses

Clerical expenses

FY 3/17

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

FY 18/３

Year-onYearchange

6Quarterly Segment Summary

FY 3/17(Millions of yen)

１Ｑ

２Ｑ

FY 3/18

３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

ChangevsPrevious
QuarterYear-onYearchangeDomestic Financial Service（ＩＮＶ）
Net operating revenues

782

603

655

728

710

753

733

887

+21.0％+21.8％

Segment profit or loss

64△131△17431406742214+403.5％+573.8％Overseas Financial Service（ＩＦＳ）
Net operating revenues

144

139

177

319

229

230

271

304

+12.0％△4.9％

Segment profit or loss

10527122

54

4463

72

+14.6％△40.4％

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved7Annual Financial Results Summary（Apr.2017-Mar. 2018）

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved8Consolidated Financial Results Summary(Millions of yen)

FY 3/17

Year-on-Yearchange

FY 3/18

3,548

4,166

+17.4％

711

604△15.0％

2,516

3,273

+30.1％

2581+222.6％

295

206

△30.1％

456+1,188.0％

Net operating revenues

3,544

4,109

+16.0％

Selling, general and administrative expenses

3,587

3,508

△2.2％

Operating income (loss)△42601―

Ordinary income (loss)△70575―

Income (loss) before income taxes△102615―

Net income (loss)△118597―

Operating revenues
Commissions earned (exchange FX, etc.)
Trading profit and loss (over-the-counter FX, etc)
Interest income
Other operating revenues
Financial expenses

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

9Non-Consolidated Financial Results Summary(Millions of yen)

FY 3/17

Year-on-Yearchange

FY 3/18

2,774

3,140+13.2％

670474△29.2％

1,807

2,397+32.6％

255+1,914.1％

293212△27.6％

456+1,188.0％

Net operating revenues

2,770

3,084+11.3％

Selling, general and administrative expenses

2,9792,718△8.8％

Operating income (loss)△209365―

Ordinary income (loss)△217345―

Income (loss) before income taxes△271348―

Net income (loss)△287299―

Operating revenues
Commissions earned (exchange FX, etc.)
Trading profit and loss (over-the-counter FX, etc)
Interest income
Other operating revenues
Financial expenses

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

10Operating Revenues and Balance of Deposited Margin (Consolidated)(Millions of yen)

(Millions of yen)

600

76,000

ＩＮＶ

Operating Revenues

ＩＦＳ74,000
500
72,000400

70,00068,000300
66,000200

64,00062,000100
60,000058,000123456ＦY 3/17789101112123

ＦY 3/18(Notes) 1. The above figures are consolidated with a three-month delay because the consolidated subsidiary company IFSends its financial year on December 31.
2. The operating revenues, etc. of IFS are converted into yen using the monthly average exchange rate.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

11Major Management Index
FY 3/17FY 3/18１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ３Ｑ

４Ｑ

ROE (%)

2.0

△1.1

△2.5

△1.1

3.7

3.8

4.1

5.8

Operating and ordinarymargins (%)

7.7

△17.4

△18.0

13.1

10.5

11.0

9.0

22.7

EBITDA (millions of yen)159

△44△70218

177

188161329※ROE data have been annualized.
EBITDA was calculated by the formula of: Net income before taxes – extraordinary income/loss + Interest expense + Depreciation = EBITDA.

Operating and ordinary margins

ＲＯＥ

（％）

（％）

6.0

30.0

4.0

20.0

2.0

10.0

0.0
-2.0
４Ｑ
FY 3/17１Ｑ

２Ｑ

３Ｑ
FY 3/18Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

４Ｑ

0.0
４Ｑ
FY 3/17

１Ｑ

２Ｑ

３Ｑ

４Ｑ

FY 3/18

12

Policies on Shareholder Returnsand Dividends

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

13

Policies on Shareholder Returns and Dividends◆Dividend policy (Policy effective as of FY3/18)
Invast Securities will pay dividends at either a consolidated dividend payout ratio of 30% or
a consolidated dividend on equity ratio (DOE) of 2% (annual), whichever is higher.
◆Dividend status◆Dividends FY3/18Interim dividend

17yen

Year-end dividend

19yen (projected)

(yen)
200

year-end dividends
Interim dividends

160

120
195

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18Interim dividends (Yen)

0.0

0.0

40.0

36.0

17.0

Year-end dividends (Yen)

195.0

71.0

40.0

36.0

Yearly (Yen)

195.0

71.0

80.0

72.0

Net income(Millions of yen)

3,931

496

△404

△118597

Total dividend(Millions of yen)

1,137

416

469

422

211

Dividend payout ratio(%)

30.2

83.4

――

35.4

ROE (%)

32.0

4.0――

5.8

DOE (%)

9.6

3.3

4.1

4.0

2.0

Dividend yield(%)※

14.8

6.1

5.9

5.5

3.480
40403671
40360
FY3/14

FY3/15

FY3/16

FY3/17（projected）
1917
FY3/1819.0（projected）

36.0（projected）※Calculated using the closing price at the end of each fiscal year

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

14Topics

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

15Topics

2017
April

Began accepting applications for the 2017 Invast mission project, the [Social Action Points Project]

May

Invested in 500 Fintech L.P., a fund operated by US company “500 Startups”

June

Start of “Real Trading Showdown Grand Prix” 10 million yen contest to determine the strongest
between FX and ETF

July

Release of Money Hatch The first asset management service in the world that lets you begin
investing with zero funds

July

Launched the “Commemorative Campaign for the Release of Money Hatch” in which reserve funds
quickly accrue through FX trading

AugustSeptemberHeld a media briefing session on the “Money Hatch x Invast Card”“Money Hatch” hits 5,000 users two months after launch

2018
January[TriAuto ETF] “Automated ETF Trading Select” version upgradeFebruary[Australian subsidiary IFS]
Became an official partner of the Australian Men’s and Women’s Rugby Sevens teams

March[Australian subsidiary IFS]Awarded Best Specialist Market Prime Broker at the Hedgeweek Global Awards 2018

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved16

Release of Money Hatch The first accumulation-type investment
service in the world that lets you begin investing with zero funds

What is “Money Hatch”?

Money Hatch is an accumulation-type investment service that makes it possible to start investing with nofunds by using points earned from credit cards and other such consumer rewards programs as principal
for investments. Funds accumulated various ways are regularly invested by trading of ETFs (exchangetraded funds) on a weekly basis, and realized gains are then re-invested.

Start investing with no funds—using points•••



Diversified worldwide investment, automatically•
•
•
•



Automatic cash conversion of points earned at a 1% rate on purchases made with Invast-issued creditcards
Cash back on trading through services offered by Invast
Automatic transfers from services accounts and bank accounts opened at Invast

Invest in ETFs (exchange-traded funds) in Japan and worldwide
With “Global Stock ETF Automated Trading,” configure an automated trading style when getting started
on Money Hatch
Trading uses contracts for difference (CFDs), so there is no foreign exchange risk on investment principal
Investing is possible in small amounts starting with 0.1 units, with no service charge

Automated trading with accumulated investments•Complete automation that follows movements in market prices to buy low, sell high, buy more when
prices of holdings fall, and re-invest profits

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved17

Invast Card
 Points on purchases automatically convert to cash and ETF investments
each month••Fully automated conversion requires no procedures whatsoever to convert points into cash
Points converted to cash automatically become principal for ETF investments

Points earned at 1.00% rate on purchases•Earned at 1.50% or more when purchasing on JACCS Mall₋

Never any annual fees if using the card••

No fees the first year
No fees every subsequent fiscal year if at least one purchase is made with the card the previous fiscalyear

Extensive lineup of insurance•••



JACCS Mall features more than 550 popular stores
Amazon.co.jp
Rakuten Ichiba/Rakuten Travel
Yahoo! Auctions
Yahoo! Shopping
ZOZOTOWN
iTunes Store

Includes domestic travel insurance (insured up to 10 million yen against death and disability, andresidual disability)
Card theft insurance
Online security service

No annual ETC card fees, family cards also have no annual fees when used forpurchases

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved18Effects of Money Hatch yield major growth for TriAuto ETF
Since the release of Money Hatch in July 2017

Number of accounts with deposits: roughly 10 times increase

Margin deposits: 4.5 times increase

12000

3,500,000

Margindeposits
預り証拠金

Accounts
with
残有口座
deposits

Amount of margin deposits (non-disclosure)

Number of accounts with deposits (non-disclosure)

3,000,000

10000

2,500,000

預8000
り
証
拠金6000額

Release ofMoney Hatch onJuly 24, 2017

2,000,000

1,500,000◠非4000開示◡1,000,000

2000

500,00000

Apr 5月May 6月Jun 7月Jul 8月Aug 9月
Sep10月Oct 11月
Nov 12月
Dec 1月Jan 2月Feb 3月Mar 4月Apr 5月May6月
Jun 7月Jul 8月Aug 9月
Sep10月Oct 11月
Nov12月Dec1月
Jan 2月Feb Mar
4月
3月
2016年
2016

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

2017

2017年

2018

19

【IFS】Become Official Partner of the Australian Rugby teams•••

IFS has agreed a deal to become Official Partner of theAustralian Men’s and Women’s Rugby 7’s teams (OlympicSport).
The Women’s team are current (Rio) Olympic gold
medallists.
We plan to increase sponsorship as we head to Rugby
World Cup in Tokyo 2019/Olympics 2020.

20

Mission/Vision andManagement Strategy

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved21

Mission / Vision
Mission Why we do business

Making the world a better place

To make the world a better place by providing people all across the globe with financial
solutions that enable happier lives.
The “better place” we envisage is a world where people who work hard can become wealthy, a good society inwhich talented and motivated students do not need to abandon options due to financial reasons, and a society
in which anyone can build assets to become happy.
Our mission is to create solutions that resolve financial issues in the life planning of people across the globe, tosupport people who face challenges, and to help more people grab opportunities to enrich their lives. We wantto contribute to the creation of a better world through the happiness of the people of the world provided fromthe aspect of finance.

Vision What we want to achieve

Creating financial solutions with a global base of 10 million
users by 2025
We aim to create solutions for resolving financial issues starting with asset management and extending to avariety of areas of people’s lives such as raising children, education, gaining employment, getting married andbuilding assets. We want to be a global company with customers across the globe in which talented staff
gathered from around the world fulfill their responsibility as true professionals to discuss, decide upon andexecute our vision day to day. The first step is to create financial solutions with a global base of 10 million usersby 2025.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

22

Business Strategy to Achieve Our Vision
STAGE 1: 2017-2019
Boost profitability ofexisting business
Create new business

STAGE 2: 2020-2022
Continuous businessgrowthSeek group synergies

Investment
periodGrowthperiod

STAGE 3: 2023-2025
Be a global company with 10
million users worldwide

Reap therewards

Business Strategy (Stage 1: 2017-2019)(1) Boost profitability of existing business・Strengthen capability to deliver our own unique value-added services(automated trade solutions utilizing technology)
・Prioritize investments in high-profitability businesses with growth potential
・Cost structure improvements such as integrating systems and doing production in-house(2) Create new business・Enter new business domains, create second and third main revenue sources after FX・Seek out businesses that focus on solutions involving people’s money (school loan repayment issues)
・M&A, business partnerships, and other arrangements through VC fund investments(3) Other

・Build our corporate brand・Bring in top talent that can fuel our global expansion, and strengthen our organizational
human resources baseCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

23

Efforts to Achieve Our Vision and Progress CheckBusiness Strategy (Stage 1: 2017-2019)(1) Boost profitability of existing business• Grow TriAuto ETF as our next main business after FX, and establish an automated global stock ETF trading
service• Making continuous improvements to Automated Trading Select and enhancing its network effect as aplatform with social functions in which clients can create and share their own automated trading logic• Create a roadmap by FY2020 and further enhance technology-driven automated trading, while launchingefforts to lower the break-even point through fixed cost reductions, etc.
• IFS is steadily growing in size, and exploring possible new locations in Europe, Asia, etc.

(2) Create new business• Release Money Hatch, the accumulation-type investment service that lets you begin investing with zerofunds, and exceeded 5,000 users within the first two months

Finding wide acceptance for the concept of accumulation-type investing in global stock ETFs with points earned at a
1% rate from credit cards• Invested in 500 Fintech L.P., a fund operated by US company “500 Startups,” and screening at least 300
growing companies• Also currently planning multiple new business concepts in IFS(3) Other• Hairej Younes assumed the position of CTO to build agile in-house systems for development• Hired lots of IT engineers capable of having an immediate impact (China, Spain, the US, Thailand, etc.), andformed IT development teams• Considered varied work styles (allowing side jobs, implementing a discretionary work system), and began
implementation in April 2018

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved24

Corporate GuidanceInvast Securities Co., Ltd. (as of Mar 31, 2018)■ Company name

： INVAST SECURITIES CO., LTD.

■ Head office： 1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan■ Established： August 10, 1960

■ Paid in capital： 5,965,086,800 yen■ Market listing： JASDAQ (Code: 8709) (*1) Listed on March 6, 2006

■ President： President and CEO Takeshi Kawaji■ Licenses

Financial Instruments Business Operators (Type 1/ Type 2), Investment Advisory： and Agency BusinessDirector-General of Kanto Local Finance Bureau (Kinsho) No. 26■： Tokyo Financial Exchange

Membership

NBF Toranomon Building

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved25Disclaimer

・The purpose of the information in this document is to inform, and not to solicit investments.
・The information in this document includes future forecasts. There are various risks anduncertainties inherent in these future forecasts, and the actual future results may differ
greatly from what the forecasts predict or suggest.
・All possible measures have been taken to ensure the accuracy of the information in thisdocument, but the information is only what was available at the time the document wascreated and we do not guarantee that it is complete, accurate, applicable, useful, etc.
・Anyone using this information to make decisions does so at their own risk; Invast Securities
assumes no responsibility whatsoever.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved26