INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
2nd Quarter Fiscal Year ends Mar. 2016

Invast Securities Co., Ltd.

Financial Highlights
Consolidated Ordinary Profit and Loss: 215 million yen
Non-consolidated Ordinary Profit and Loss: 331 million yenWhile the company posted an operating loss in the last term due to sluggish trading, triggered by a

low-volatility market in the first half of the last fiscal year, and a prior investment in TriAutoFX, releasedin February last year, its performance has recovered in the current term owing to a brisk foreignexchange market, resulting from confusion over the situation in Greece, an uncertain outlook for theChinese economy, and anticipation about an interest rate rise in the US, and cost control.

Continuous Increase in Operating Income and Client Assets from Consolidated Overseas
Subsidiaries (IFS)Consolidated operating income was 256 million yen in the second quarter (January to June 2015) of
this fiscal year.

Client assets exceeded 40 million Australian dollars, reaching 41.74 million Australian dollars (as of theend of September 2015), increased by four times, compared to those in December 2014.

Change in Dividend Policy
The company has decided to pay interim dividends.

A consolidated dividend payout ratio of 30% or a consolidated dividend on equity ratio (DOE) of 4%.

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2

Financial Highlights(Consolidated)

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Summary of Financial Results 2Q FY ends Mar. 2016
(Millions of yen)
2Q FY 2015

Year-on-year change

2Q FY 2016

NonconsolidatedConsolidated

Operating revenues1,130

1,222Commissions earned(exchange FX, etc.)281

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

Consolidated

Nonconsolidated

Consolidated

1,756

1,995

155%

163％

281

509

524

181%

186％

667

744

1,040

1,250

155%

168％

Selling, general and administrative
expenses

1,526

1,803

1,429

1,762

93%

97％

Operating income△395△581326232--

Ordinary income

△372

△552

331

215-

-

Extraordinary income/loss

1,012

1,012----

403

223

209

9351%

41％

Net income

Copyright© INVAST SECURITIES CO.,LTD. All Rights ReservedNonconsolidated4Comparison of Financial Results (Consolidated)(Millions of yen)

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5EBITDAFY ended March 2013
[Non-consolidated]

FY ended March 2014
[Consolidated]

FY ended March2016[Consolidated]

FY ended March 2015
[Consolidated]

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

1000158

389

471

49

3,528

647413

277

177

90

124

2300-13

240

3,635

132

542

470

9-330000000000000000

Depreciation

6969769391

93

102

98

111

114

107

93

89

88

EBITDA

146

69

235

497

538

143-4-26-383

57

375

304

180

212

Net income
before taxes
Extraordinary
income/loss
Interest
expense(Millions of yen)

Although the company reported an EBITDA
loss in the same period of the previous year
due to a prior investment in the start ofTriAutoFX as well as sluggish trading,resulting from low volatility in the foreignexchange market, EBITDA has increased in
the current period owing to a brisk foreignexchange market with a steady level ofadvertising and publicity expenses.
Note: EBITDA was calculated by the formula of:
Net income before taxes – extraordinary
income/loss + Interest expense + Depreciation =EBITDA. This represents an income metric that
illustrates what level of cash flow was generated
by capital including borrowed capital

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6Total deposited margin(Millions of yen)

100000
Increase in deposited margins at overseas financial businesses (IFS), leading to arecovery of 70 billion yen

80000

70,397

60000

40000

20000

0JanMarMayJul2014

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SepNovJanMarMayJulSep

2015

7

INVAST FINANCIAL SERVICES PTY LTD.

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8Invast Financial Services (IFS)As the company has changed its business strategy to focus on B-to-B transactions and started dealing withmajor corporate customers, its consolidated operating income has increased significantly to 256 million
yen in the second quarter (January to June 2015) of this fiscal year, up 281%, compared to the same
period of the previous year.
The amount of deposited margin exceeded 40 million Australian dollars, reaching 41.74 million Australiandollars (as of the end of September 2015), increased by four times, compared to those in December 2014.

Personnel expenses have increased as directors and employees have been hired to enhance andexpand the corporate sales division, resulting in pushing up the break-even point, creating the challengeof making a profit on a non-consolidated basis.

Starting new service “PortfolioInvestor” for CFD portfolio trading.

Building a new website for providing service to corporations on July 17, 2015.

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9Grow the overseas financial business: IFS（in tens of thousands of Australian dollars ）

4500

4,174

Balance of deposited margin
Increasedby fourtimes

Net operating revenue

3500

150

100
2500

50
1500

1,093
500

0
Jan

Mar

MayJul2014

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Sep

Nov

Jan

Mar

MayJulSep

2015

10

Measures for Returning Profits to Stockholders

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11Change in Dividend Policy

Dividends twice a year: interim and year-end dividends
Consolidated dividend payout ratio of 30%
orConsolidated dividend on equity ratio (DOE) of 4% (annually).

The higher ratio will be applied to dividends.
To improve opportunity to return profits to stockholders

To reduce taxation on internal reserves at designated affiliated companies by curbing
excessive internal reserves

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12

The Results and Prospects of Dividends
Dividend Yield in the FY ended March 2016 (estimate)

6.53%*Stock price: A closing price of 1,225 yen a share on October 29, 2015 was used for the calculation.

FY ended
March 2012

FY ended
March 2013

FY ended
March 2014

FY ended
March 2015

Interim dividend

0.0 yen

0.0 yen

0.0 yen

0.0 yenYear-end dividend

9.0 yen30.0 yen

195.0 yen

71.0 yen

Annual dividend

9.0 yen30.0 yen

195.0 yen

71.0 yen

Dividend payout
ratio

30.7%

32.0%

30.2%

83.4%

ROE

2.1%

5.9%

32.0%

4.0%

DOE

0.7%

1.9%

9.6%

3.3%

FY ended
March 201640.0 yen
40.0 yen(estimate)80.0 yen(estimate)

The estimate for a year-end dividend in FY ended March 2016 has been adjusted as the company pays adividend of retained earnings for the date of record on September 30, 2015 (interim dividend) alongwith the recent trend in performance.

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13Development of Service Going Forward

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14

Future Business Development

Spring 2016
Two kinds of new overseas investment services
are scheduled to start.

 CFD based on selecting foreign stocks

 The world’s first ETF focusing onmargin transactions“TriAutoETF”Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

15

What is Trend Portfolio?
• Just select the stocks you want to buy from the portfolioof US stocks, created by professionals
 “Billionaire” series••

A portfolio of US stocks held by Berkshire
Hathaway Inc., led by Warren Edward
Buffett, the best investor in the world
A portfolio of US stocks held by Bill &Melinda Gates Foundation, led by Microsoft
founder Bill Gates

 “Top-rank US university fund”
series “Portfolio based on investmentthemes” series••••

Screen image••

US stocks: the big data industry
US stocks: the cyber security industry
US stocks: the solar power industry
US stocks: the Chinese internet and smartphoneindustry
US stocks: US stocks with high dividends
US stocks: companies aggressively purchasing
their own shares* Release of this product is scheduled for the spring of 2016.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved16

The Attractiveness of Trend Portfolio
 Just select stocks you want to buy from the portfolio of stocks, created byinstitutional investors.
 Berkshire Hathaway Inc. (the world’s largest investment company)
 US stocks, the big data industry

 Just select the portfolio of stocks and input purchase prices to calculate thenumber of buying stocks automatically and to purchase stocks at stock
exchanges using the Direct Market Access (DMA) method.

 The investment principal remains as the yen. Foreign exchange risks aremitigated, and no cost is incurred for exchange.
 Brokerage commissions are about one tenth that of those at majorinternet securities companies.

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What is “TriAutoETF?”
The world’s first ETF focusing on margin transactions
ETF transactions, selected from ETF in each market acrossthe world, based on CFD* The display screen is an image under development. It will
be different from the actual display.

* Release of this product is scheduled for fiscal 2016.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved18

The Attractiveness of “TriAutoETF”
 ETF in the world is provided with a contract for difference (CFD).

 ETF transactions, selected from ETF in each market across the world,
mainly in the US market, are available.
 Trading can be started with selling orders like FX and margin transactions,based on the expectation that prices go down.
 Transaction fees, foreign exchange commissions, and management fees
are not required.

 The amount equivalent to dividends is provided.
 The investment principal remains as the yen. Foreign exchange risks aremitigated, and no cost is incurred for exchange.

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19Corporate GuidanceInvast Securities Co., Ltd. (as of September 30th 2015)■ Company name:■ Head office:■ Established:

August 10, 1960

■ Paid in capital:

5,965,080,000 yen■ Market listing:JASDAQ (Code: 8709) (*1) Listed on March 6, 2006

■ President:President and CEO Takeshi Kawaji■ Employees：

47[Non-consolidated]
70[Consolidated]■ 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

INVAST SECURITIES CO., LTD.
NBF Toranomon Building
1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan

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