INVAST SECURITIES CO.,LTD.

Financial Highlights(Consolidated)
1st Quarter, Fiscal Year ended March 31, 2018

Invast Securities Co., Ltd.

Contents

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

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2Summary of １Q Financial Results（Apr.-Jun. 2017）

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Consolidated Financial Highlights
Main takeaways from financial results of 1Q FY 3/2018 (Apr-Jun 2017)
943 million yen in operating revenues (year-on-year change of +2.0%)•Domestic financial service (INV) posted 710 million yen (-9.2% year-on-year) in net operating revenues, andsegment profit of 40 million yen (-37.2% year-on-year)•

Overseas financial service (Australian subsidiary IFS) posted 229 million yen (+59.1% year-on-year) in net
operating revenues, and segment profit of 54 million yen (+400.0% year-on-year)➢Reflects the effects of new account campaigns and other such activities resulting in increased transaction volume for
our FX platform “ST 24” as well as strong performance for IFS. Trading profits and loss increased 19.3% year-on-year
to a profit of 736 million yen➢

Commissions earned fell 32.6% year-on-year to 146 million yen due to factors including a 50% decrease intransaction volume for FX market “Click 365.”➢Transaction volume and deposits both continued to rise for “Triauto ETF”, which surpassed one full year of operationand is setting new monthly records

Sales, general and administrative expenses were 843 million yen(-0.6% year-on-year)•Lower sales, general and administrative expenses as a result of curbing advertising and promotion costs, in addition tolower transaction-related costs due to stagnating FX market

95 million yen in operating income (+26.5% year-on-year), 98 million yen in
ordinary income (+39.1% year-on-year)
94 million yen in quarterly net income attributable to parent company
shareholders (+77.9% year-on-year)•Posted non-sales revenues of 5 million yen, including gains on foreign exchange•

Posted an extraordinary gain of 4 million yen from reversal of financial instruments transaction liability reserves

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Consolidated Financial Results Summary(Millions of yen)

FY 3/171Q

FY 3/18
1Q

Year-on-Yearchange

924

943

+2.0％

Commissions earned (exchange FX, etc.)

217

146

△32.6％

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

617

736

＋19.3％

711+55.3％

8248△41.5％

04768.8％

Net operating revenues

924

938

+1.6％

Selling, general and administrative expenses

848

843

△0.6％

Operating income (loss)

75

95+26.5％

Ordinary income (loss)

7198+39.1％

Income (loss) before income taxes

77103+33.1％

Net income (loss)

52

94+77.9％

Operating revenues

Interest income

Other operating revenues
Financial expenses

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

FY 3/171Q

FY 3/18
1Q

Year-on-Yearchange

783

715

△8.7％

Commissions earned (exchange FX, etc.)

208

121

△41.8％

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

491

540

+10.0％

15+326.0％

8148△41.3％

04+768.8％

Net operating revenues

782710△9.2％

Selling, general and administrative expenses

718

670

△6.7％

Operating income (loss)

6440△37.2％

Ordinary income (loss)

66

42△36.3％

Income (loss) before income taxes

7246△36.2％Net income (loss)

4737△22.3％

Operating revenues

Interest income
Other operating revenues
Financial expenses

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6Quarterly Summary
FY 3/17

FY 3/18(Millions of yen)

３Ｑ

４Ｑ

Year-onYearchange

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

Operating revenues

924

742833

1,048943△10.0％+2.0％

Commissions earned(exchange FX, etc.)

217

162

180

151

146

△3.3％

△32.6％

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

617

503

565

829

736

△11.2％+19.3％

Interest income

7556

11＋86.6％+55.3％

Other operatingrevenues

8270

81

6148

△21.4％△41.5％

Financial expenses

020

14＋334.2％+768.8％Net operating revenues

924

740

832

1,047

938

△10.4％+1.6％

Selling, general andadministrative expenses

848866

979

893

843

△5.6％

△0.6％

Operating income (loss)

75

△126

△146

154

95

△38.3％+26.5％

Ordinary income (loss)

71△128△15013798△28.1％+39.1％

Income (loss) before
income taxes

77△128△12876

103+35.0％+33.1％Net income (loss)

52

△108

△1377394+27.9％+77.9％

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２Ｑ

Changevs
PreviousQuarter

7

Quarterly Selling, general and administrative expenses

FY 3/17

FY 18/３(Millions of yen)

２Ｑ

３Ｑ

４Ｑ

１Ｑ

848

866

979

893

843

△5.6％

△0.6％

Trading related expenses

212245327

208

177

△14.8％△16.5％(Advertising expenses)

(112)

(154)

(223)

(96)

(83)

△14.0％△25.6％

Personnel expenses

233211

227

243

247

+1.8％

+6.3％

Real estate expenses

270282

301

307

291

△5.2％

+7.8％

(IT system expenses)

(224)

(234)

(246)

(248)

(236)

△4.9％

+5.3％

696

56+20.5％△6.8％

Depreciation expenses

8884

80

80

78

△2.1％

△10.4％Tax and public charges

2317213026△13.6％+11.8％

Others1415131715△13.9％+4.3％

Clerical expenses

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３Ｑ

４Ｑ

Year-onYearchange

１Ｑ
Selling, general andadministrative expenses

２Ｑ

ChangevsPreviousQuarter

8Quarterly Segment Summary

FY 3/17

FY 3/18(Millions of yen)

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

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

782603

655

728

710

△2.4％

△9.2％

Segment profit or loss

64

△131

△174

3140+26.6％△37.2％

Overseas Financial Service（ＩＦＳ）
Net operating revenues

144

139

177

319229△28.4％+59.1％

Segment profit or loss

1052712254△55.2％+400.0％

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

Operating Revenues

ＩＦＳ(Millions of yen)

72,000450
400

70,000350
68,000300
250

66,000200
64,000150
100

62,00050
60,000045678910

ＦY 3/17

1112

1

23456

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.

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10Major Management Index

FY 3/17

FY 3/18

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

ROE (%)

2.0

△1.1

△2.5

△1.1

3.7

Operating and ordinary
margins (%)

7.7

△17.4

△18.0

13.1

10.5

EBITDA (millions of yen)

159

△44

△70218177

Capital adequacy ratio (%)

1156.11096.51068.2

807.2

760.8

２Ｑ

３Ｑ

４Ｑ

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

ＲＯＥ

（％）

6.0（％）
20.0

4.0

10.0

2.0

Operating and ordinary margins

0.0

0.0

-10.0

-2.0
-4.0

-20.0

１Ｑ

２Ｑ

３Ｑ

４Ｑ

17/3
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１Ｑ
18/3

１Ｑ

２Ｑ

３Ｑ
17/3

４Ｑ

１Ｑ
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11

Mission/Vision andManagement Strategy

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

12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 financialsolutions 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 users
by 2025.

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13

The Solutions We Provide
Our Proposal
Auto-trading service utilizing technologyST24 Full Auto——Over 6,000 strategies are constantly monitored, and strongly performing strategies that match theconditions provided are automatically selected.
Each strategy is an automated trading program for algorithmic trading collected from around the globe.

TriAuto FX Range Trailing—

Multiple buy orders and sell orders can be set simultaneously within a predetermined price band (pricerange) to automatically finalize profits and repeat new orders as long as the price fluctuates within thatprice band.

TriAutoETF Auto-trading select—A simple and easy way to engage in ETF trading, recommended for beginners. Once activated, the autopilot function will commence trading based on selected investment themes and trading logic.

Money Hatch (An accumulation-type investment management service)——Use points earned via credit card use as principal to invest
Automatically accumulate funds for investing by trading FX

Money Hatch
Click here for details

https://moneyhatch.jp
Money Hatch screen
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14

Business Strategy to Achieve Our Vision

STAGE 1: 2017-2019
Boost profitability of

STAGE 2: 2020-2022
Continuous businessexisting business
Create new businessgrowthSeek group synergies

Investment
periodGrowthperiodSTAGE 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 base

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15

Policies on Shareholder
Returns and Dividends

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16

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% ora consolidated dividend on equity ratio (DOE) of 2% (annual), whichever is higher.
◆Dividend status◆Dividends FY3/18
Interim dividend

17yen (projected)

Year-end dividend

TBD(yen)200
year-end dividends
Interim dividends
160

120
195

FY3/14

FY3/15

FY3/16

FY3/17

Interim dividends (Yen)

0.0

0.0

40.0

36.0

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)

3,931496

△404

△118

Total dividend(Millions of yen)

1,137416

469422Dividend payout ratio(%)

30.2

83.4

――ROE (%)

32.0

4.0――

DOE (%)

9.6

3.3

4.1

4.0

Dividend yield(%)※

14.8

6.1

5.9

5.5

FY3/1817.0(projected)

TBD

80
4040

367140(projected)
36170
FY3/14

FY3/15

FY3/16

FY3/17

FY3/18※Calculated using the closing price at the end of each fiscal year

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17Corporate GuidanceInvast Securities Co., Ltd. (as of June 30, 2017)■ 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 ExchangeMembership

NBF Toranomon Building

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