INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
3nd Quarter Fiscal Year ends Mar. 2016

Invast Securities Co., Ltd.

Highlights of Consolidated Accounts in the nine-month
period ended December 31, 2015 for the fiscal year ending March 31, 2016

Consolidatedresults••

Operating income
2.78 billion yen (118.7% of that for the same period a year earlier, which was 2.34 billion yen)
Ordinary income
0.14 billion yen (-0.28 billion yen for the same period a year earlier)Market conditions were slightly weaker than a year earlier, but the income increased and returned to profitability thanks toTriAuto FX, ST 24, and the increased income of our overseas subsidiary.
.
••

Operating revenues
1.56 billion yen (124.3% of those for the same period a year earlier, which were 1.26 billion yen)Segment profit or loss
0.21 billion yen (-0.23 billion yen for the same period a year earlier)
The revenues increased and returned to profitability thanks to the increased volume of TriAuto FX and ST 24.

Exchange FX••

Operating revenues
0.78 billion yen (90.5% of those for the same period a year earlier, which were 0.86 billion yen)Segment profit or loss
0.08 billion yen (61.5% of that for the same period a year earlier, which was 0.14 billion yen)
The trading volume decreased in contrast to the market conditions, which have been brisk since September.

Overseas
Finanscial Service••

Others••OTC FX

Operating revenues
0.38 billion yen (213.3% of those for the same period a year earlier, which were 0.18 billion yen)Segment profit or loss
-0.14 billion yen (-0.21 billion yen for the same period a year earlier)
The new system was adopted in November; the revenues for December doubled compared with those for October; and therevenues returned to profitability per single month and this trend continued toward the end of the year.

Operating revenues
69 million yen (197.0% of those for the same period a year earlier, which were 35 million yen)Segment profit or loss
14 million yen (428.8% of that for the same period a year earlier, which was 3 million yen)
Both revenues and profit have significantly increased thanks to the improved market conditions surrounding the Nikkei
Average.
*The figures in parentheses show the actual results for the same period a year earlier and the ratios compared with such actual results from a year earlier.

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2

Financial Highlights(Consolidated)

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Summary of Financial Results 3Q FY ends Mar. 2016
（ Millions of yen ）3Q FY 2015

Year-on-year change

3Q FY 2016

Nonconsolidated

Consolidated

Operating revenues

2,161

2,343

Commissions earned(exchange FX, etc.)587

Trading profit and loss
(over-the-counter FX)
Selling, general andadministrative expenses

Consolidated

Nonconsolidated

Consolidated

2,419

2,782

112.0％

118.7％

587

680

713

115.9％

121.5％

1,236

1,398

1,443

1,750

116.7％

125.1％

2,255

2,652

2,105

2,611

93.3％

98.5％

Operating income△94△308314

170-

-

Ordinary income△59△284324

144-

-

1,022

1,02200-

-

588

333

189

933.9％

2.9％

Extraordinary income/loss
Net income

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Nonconsolidated

4

Comparison of Financial Results (Consolidated)(Millions of yen)3,000

2,500

2,782

18.7％
increase

2,343

Sellong,general and
2,000

administrative expenses
Operating income

1,500
1,000

Ordinary income

1,022

Extraordinary income/losss
333500170 144

09Net income

0△ 500△ 308△284

3QFY2015

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3QFY2016

5EBITDA

Remaining positive for the last consecutive 6 quarters

FY ended March 2013
[Non-consolidated]

FY ended March 2014
[Consolidated]

FY ended March 2016
[Consolidated]

FY ended March 2015
[Consolidated]

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

Net income
before taxes

1000158

389

471

49

3,528

647413

277

177

90

124

△71

Extraordinary
income/loss

2300-13

240

3,635

132

542

470

9-33

000

Interest
expense

0000000000

0

0

000

Depreciation

69

69

76

93

91

93

102

98

111

114

107

93

89

88

88

EBITDA

146

69

235

497

538

143-4-26-383

57

375

304

180

212

174Ｑ

（百万円）
600
400
200
0Note: EBITDA was calculated by the formula of:-200

Net income before taxes – extraordinary

-400

1Q

2Q

3Q

4Q

1Q

2Q3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY ended MarchFY ended MarchFY ended MarchFY ended March

2013

2014

2015

2016

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income/loss + Interest expense + Depreciation= EBITDA. This represents an income metricthat illustrates what level of cash flow wasgenerated by capital including borrowed capital

6

Total deposited margin（ Millions of yen ）100,000
In spite of an decrease in overseas financial services (IFS), the figures of the deposited margin
remain around 70 billion yen

80,00071,18160,000

40,00020,0000JanMarMayJul2014

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Sep

Nov

JanMarMayJulSep

Nov

2015

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INVAST FINANCIAL SERVICES PTY LTD.

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8Highlights of the Account Settlement for the period fromJanuary to September 2015: IFSThe operating revenues for the nine-month period (from January to September 2015) underreview significantly increased, standing at 388 million yen, or 208.3% of those for thesame period a year earlier.

Meanwhile, the actual result of our operating loss as of the end of September was -140

million yen, far behind our target of returning to profitability on a single-fiscal-year basis.
We adopted a new CEO system with Mr. Gavin White on November 13, 2015.
→To focus on more intensive sales activities toward corporate customers; and to reduce
fixed expensesThanks to development of new large corporate customers,
operating revenues significantly increased as follows:
Operating Revenues
October: 0.51 million Australian dollars (about 44 million yen)
November: 1.1 million Australian dollars (about 96 million yen)
December: 1.05 million Australian dollars (about 92 million yen)*calculated with average TTM rates for each monthThe revenues returned to profitability on a single-month basis and this trend continued toward
the end of the year.

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9Management Profiles of Our Overseas Subsidiary [Invast Financial
Services Pty Ltd.: IFS]

Gavin White
Chief Executive Officer Background

Jon Leung
Chief Information Officer Background

Cantor Fitzgerald

Managing Director

Cantor Fitzgerald

Project ManagerMF Global

Head of FX/CFD Asia Pacific

MF Global

Project Manager

City Index

Head of Business Development

CommSec

Product Development Manager

ABN Amro N.V.

Head of G10 Trading

Commonwealth Bankof Australia

Business Analyst

Barclays Capital

Head of FX Trading
Deutsche Bank

Project Manager

Bankers Trust Australia

Head of AUD FX Trading
BNP Paribas

Project Manager

Citibank

Head of FX Trading

Westpac Institutional Bank

Senior FX Dealer

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved10Grow the overseas financial business: IFS
The operating revenues for November and December
doubled compared with those for October.
(10,000 Australian dollars)

110

4,500
Balance of deposited margin
4,000
Net operating revenue

Increasedby times

120

105
100

3,500
3,000802,500
602,00051

1,50040

1,000
20500
00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014

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2015

11

Measures for Returning Profits to Stockholders

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12Dividend Policy 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)

 Actual result and estimation for the year ending
March 2016 Interim dividend

40 yen (actual result) Year-end dividend

40 yen (estimation)

 Total80 yen (estimation)

 Dividend Yield in the FY ended March 2016 (estimate)
5.64％ *Stock price: calculated with the closing price (1,417 yen) on January 28, 2016
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Development of Service Going Forward

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14Renewal of TriAuto FXMinimizing the spread to the extent possible *basically fixed (with exceptions) US dollar/Japanese yen

Currently: 0.5 → 0.3

 Euro/US dollar

Currently: 0.7 → 0.4

and so on

Manual orders: availability of the 1,000 currency unit and improved functions
 FIFO functions added Equipped with a panel dedicated for manual orders
 Allows order placing on a smartphone while looking at charts on it

and so on

Equipped with a panel dedicated for automatic purchase and sale, “Enhanced functions ofranking profitable patterns”
 Enhanced usability on a HOME management screen
 Easier risk management with an added function that displays the maximum amount up
to which a user can place orders

 A settlement button added on a screen for position reference

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Future Business Development
Spring 2016
New overseas investment services are scheduled tostart. The world’s first ETF focusing on margintransactions “TriAutoETF”*The commencement of the trend portfolio services (stock-price CFD transactions) is postponedsince these are being energetically developed for better services.

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16

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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Corporate GuidanceInvast Securities Co., Ltd. (as of December 31th 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]
76[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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