Medium-Term Management Plan
Traders Group Vision for 2027
TRADERS HOLDINGS CO., LTD.
Securities Code: 8704
Apr.30, 2024
This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

MISSION

Create New ValueVISIONTRADERS Group will become the "FinTech" Group mosttrusted by customers and realize a society in which
everyone can invest in the future.
2VALUETRADERSHOLDINGS CO., LTD.

TRADERS SECURITIESCO., LTD.

FleGrowth Co. Ltd.

We will continue to take on the challenge of reform throughmanagement that respects compliance and diversity,
while valuing all the people involved.

We will continue to take on the challenge of providing
new services demanded by customers and society
while contributing to the improvement of financial literacy.

We will continue to challenge the development of stable andinnovative systems with a sense of speed while providing
competitive services.

3

Core Competence
Develop financial services and IT technology services as the core of the Group,by establishing a system in which each business cooperates to quickly identify, analyze,
and improve problems Generate synergies in the business.

・FX(foreign exchange trading)・Crypto asset CFD・System trade
・Binary option
・Financial information service
AND MORE.

Business challenges andcustomer feedback.
Detecting the latest trends in thefinancial industry.

FinancialServices

CreateNew ValueITTechnology
Services

・Financial system service
System operation andmaintenance・Systems / Business
Consulting
・R&D and more …

Immediate reflection in the system.
Development of new systems andservices.

Online offering of FX, options trading, and crypto-asset

Constantly improve your system with fast, iterative

CFDs mainly through “Minna no FX” and “LIGHT FX”.

improvements.
Provide clients with an ever-evolving system.
44

Review of the Previous Medium-Term Management Plan

5Plan to Double Assets Under Custody
Results for the Previous Medium-Term Management Period.

Achieve 120 billion yen* in assets
under custody and become the top
player in the FX industry!
*The target for assets under custody was revised to 100 billion yen
for the FY 2023/3.

Stabilize earnings base andaccelerate business growthby product diversification.

6

Assets under custody reached over 100 billion yen.
✓ As of the end of March 2024, assets under custody totaled 101 billion yen, reaching the mediumterm management plan target.
✓ An increase of approximately 36 billion yen over the three years from March 2021, of which 20.6
billion yen was FY 2024/3.
[BILLIONS OF YEN]

Period of the previous medium-term management plan

100

Increase of 36 billion

10196.1 94.4

88.2

90

80.3
80

70
60

55.3

58.5

61.7

65.0

68.4 70.2 68.3 69.1

73.3

75.5 74.6

51.4
46.7

50

42.4 42.4
40
1Q

2Q

3Q

FY 2020/34Q

1Q2Q3QFY 2021/3

4Q

1Q

2Q

3Q

FY 2022/3

4Q

1Q

2Q

3Q

FY 2023/3

4Q

1Q

2Q

3Q

4Q

FY 2024/4

7

Ranking in the FX industry: Becoming the main playergroup in the industry with over 100 billion yen.
✓As of the end of March 2024, assets under custody amounted to 101 billion yen, reaching the target of second place group.
※Out of 47 registered members of the Financial Futures Association of Japan (as of the end of April 2024)✓The situation has changed from three years ago, and there are differences in the accumulation of assets under custody among
companies in the second largest group.
Period of the previous medium-term management plan250

Company A

200

Second place group

Company B

150
Company CCompany D

100

Our CompanyMar.2024
101 bnCompany E50

Company FMar.2021
65.1 bn0
Apr.2018

Apr.2019

Apr.2020

Apr.2021

Apr.2022

Apr.2023

Mar.2024
8

Our Strategy: Change course fromdiversification of product development.
✓ Changed product strategy due to weak crypto-asset CFDs
and favorable FX business environment due to US-Japan interest rate differentials.
✓ Focus on more profitable businesses Focus marketing on FX business.

Products suchas crypto-asset CFDs

FX（%）

6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.50.0✓ In addition to the delay in the launch of newservices for crypto-asset CFDs trading,the crypto market has collapsed.
✓ The bankruptcy of a crypto-asset exchange
company in the United States worsened theimage of the company, and the volume oftransactions declined along with credit
concerns.
✓ The business environment has changed
significantly since the medium-term
management plan was formulated.

5.5%

5.25% risein US interest rates
0.25%
2022

✓✓

USD/JPY
Maximum difference
44.493 yen

2023

2024

2022

2023

2024

Historical weakening of the yen due to the rise in US interest rates in March 2022,
which caused a difference in interest rates between Japan and the US.
Focus all marketing efforts on FX.

9Performance Against Assets in Custody Planby Product✓ Target of 90 billion yen for FX-only assets under custody.
✓ As a result, assets under custody totaled 101 billion yen, and FX exceeded 10.9 billion yen.
[Billions of yen]120

Crypto asset CFD, etc.

120

FX1101009590Others
158070

Others075

Others0Others
5605040

FX65.1

FX70.0

FX69.1

Past results

Planning

Past results

Others
30101
Others0.1

Others0.1

FX80.0FX
80.3

Planning

Past results

FX
90.0

FX
100.9

30

FY 2021/3

FY 2022/3

FY 2023/3

Planning

Past results

FY 2024/3

10

Results for the Previous Medium-Term Management Period.
✓ Operating revenue increased by 1.5 times and operating income and ordinary income
increased by 90% in three years.
✓ Consolidated net assets nearly doubled, and ROE remained high at over 25%.
✓ Continued to exceed shareholder expectations.
[Millions of yen]

FY 2021/3

FY 2022/3

FY 2023/3

FY 2024/3

Percentagechange（VS FY 2021/3）

Operating revenue

6,856

7,082

9,194

10,103+47.4%

Operating income(Operating income margin)

2,356

2,372

3,742

4,412+87.2%[34.4%][33.5%][40.7%][43.7%][＋9.3％]

Ordinary income

2,272

2,360

3,730

4,389＋93.1%

Profit attributable toowners of parent

1,793

2,189

3,217

3,334+85.9%

Net assets

7,321

9,250

11,975

14,121+92.9%

Assets under custody(Billions of yen)

65.0

69.1

80.3

101.0

+35.9

ROE

28.0%

26.4%

30.3%

25.6%

(2.4)%

11

New Medium-Term Management Plan

12

New Medium-Term Management Plan
Reaching the top 3 in the FX Industry.

Target assets under custody:

145 billion yen
13Competitive Strategy of
the New Medium-Term Management Plan

14

Our thoughts on business
Make finance moreinteresting.

Stock

In a world wherepeople are trading
both FX and stocks

FX

15

Business Environment Under
the New Medium-Term Management Plan
✓ Interest rates have been on the rise again in recent years.
✓ Swap points become more attractive, favorable environment continues for FX.
Trends in Policy Interest Rates in Each Country (from 2008 to present)
（％）
13.0

12.0
MEX

11.0
10.0
9.0

S.A.

8.0
7.0

USA NZ

6.0

UK
EUROPE
AUS

5.0
4.0

3.0

Rebound

2.0
1.0
0.0

Japan
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

(1.0)
USAJapan

Europe

UK

AUS

NZ

S.A.

MEX

16

Product Strategy of the New Medium-Term Management Plan
✓ Continued high profitability and high growth led by over-the-counter (OTC) retail FX.
ProfitabilityHigh

Concentrating management resourceson highly profitable OTC FXOTC FX✓ Continued high interest rate environment.
✓ Increased foreign currency investment needs.
Intense fee competition and heavy cost burden.

Crypto assets other than
Bitcoin stagnate.
Risk of unprofitable commercialization
due to late entry.
CFD for stock indicesand commodities

Crypto asset CFD

Actualcryptoassets

Stock
Cost burden

Low
Small

Large
17

Sales Strategy Under the New Medium-Term Management Plan:
New Target Customer Segments✓✓

While continuing to focus on acquiring existing customer segments, we will strengthen our approach to customer segments that
we have not been able to reach.
Introduction of new products for beginners and establishment of a specialized department for large customers to enhance consulting.

Foreigncurrency
investment

Customer domain

Attributes, measures, and strategies✓ Establish a specialized department to increase the volume ofcommunication with large customers who are active ininvestment and have investment capacity.
Understand customer needs in detail and provide highly
useful consulting tailored to each customer.

Large

Strengthening communication
through specialized departments.

Existing Clients
Main Area
Introduce and approach new products.

SmallBeginners andThose Inexperienced in Foreign
Currency Investment✓ Make full use of the marketing capabilities we havecultivated to date. Increase assets under custody to a level
unrivaled by existing customers and other companies in ourmain fields.

✓ Introduce new products by taking measures such as
strengthening Minna no System Trading for those who haveno experience in FX investment and beginners.
✓ Aim to lower barriers to FX and expand foreign currencyinvestment.
18

Promotion of differentiation strategy in FX:
Strengthen system trading!
✓✓✓✓Compared to other FX trading, the profit unit price per transaction is high and the trading frequency is large,
so it is highly profitable among FX trading.
We are the only company in Japan that offers a "selective system trading" (follow trading) that allows other strong traders tochoose trades.
Beginners do not need difficult programming and can easily follow the trades of advanced traders, so even beginners can tradewith peace of mind.
In the future, we will replace the contract system with our own system, which will enable us to process large volumes oftransactions with a more powerful contract system.

Estimated sales volume by trading system
In the future, “Minna noFX” and “LIGHT FX” will beable to generate the samelevel of revenue.

19Advantage of the Group's System Development
Business challenges andcustomer feedback.
Detecting the latest trends in thefinancial industry.

Finance

SystemCreate
New ValueFG

Immediate reflection in thesystem.
Development of new systems
and services.

TRADERS SECURITIES CO., LTD.

01

Cost

Since the system is developed inhouse by a wholly ownedsubsidiary within the Group, thesystem can be developed at costfor the entire Group.
Reduces development costs.

02SpeedTRADERS SECURITIES CO., LTD. andthe person in charge of systemdevelopment are in the same office,which enables close cooperation with thefront line. There is no loss ofcommunication, and it is possible toascertain the points for improvement andtake immediate corrective measures, sothat the service release can be done
earlier.

FleGrowth Co., Ltd.

03 Quality

04 Knowhow

Engineers who have beendeveloping FX systems for morethan 20 years are dedicated to ourFX systems and achieve
overwhelming stability andconvenient processing speed.

Strong problem-solving skills
based on long experience in FX.
Knowhow accumulated within thecompany will be a source ofcompetitiveness in the future.
20
20

Leveraging Generative AI to Accelerate Product Developmentin the DX Domain
Using AI to develop
what it would be nice tohave in a company.

FleGrowth Co. Ltd. gathers information onproblems and requests from within the Group.

Various DX products
utilizing generative AI

Education
Training✓(AI Support Desk)✓Developing services to improve theefficiency of internal operations using
generative AI "In-house Consultation Desk“.

Product development using generative AI

External sales✓

ProblemResolution

Use within the group to identify many
problems and train the AI to provide moredetailed answers.
High quality answers

Improving operational efficiency and productivity
within the Group✓✓

Commercialization for external sales.
Increase the number of companies
adopting the system and increase
consolidated net sales while improving
operational efficiency and productivity atcompanies adopting the system.

To external sales
21New Medium-Term Management Plan Assets Under Custody✓ Accumulate FX assets under custody at an annual rate of
15 billion yen to reach 145 billion yen or more in three years

145 bn[Billions of yen]

130 bn15 bn

115 bn15 bn

101 bn15 bn

FY 2024/3

FY 2025/3

FY 2026/3

FY 2027/3
22

FX Industry Ranking（ Assets under custody）
and Future Vision✓ In three years, we will overtake two companies with assets under custody in the 100billion yen range and advance to the top 3. The FX industry will be a three-way race.
[Billions of yen]Previous Medium-Term
Management Plan for 2024

Next Medium-Term
Management Plan for 2027

For 2030 and beyond

300

250

200145 bn

150

100

101 bnFX Industry
top 3 tocompete

50023Ordinary Income Ranking for the Fiscal Year Ended March 2023✓

In the near future, we will be on par with major online securities companies
in terms of consolidated performance.

Rank

FX industry

Ordinary income

1

GMO CLICK
Securities, Inc. ※2

12.1 bn2

DMM.com
Securities Co., Ltd.

12.0 bn3

Gaitame.Com
Co., Ltd.

4.5 bn4

TRADERS HOLDINGS
CO., LTD.

3.7 bn5Hirose Tusyo Inc.

6

GMO Gaika, Inc.

7

MONEY SQUARE,INC.

8MONEY PARTNERSGROUP CO., LTD.

3.5 bn2.7 bn2.2 bn1.2 bnRANKSecurities industry (Listed)

Ordinary income

RANK

online securities

1Nomura Holdings, Inc. ※3

149.4 bn

1

SBI SECURITIESCo., Ltd.

49.5 bn

2

Daiwa Securities Group Inc.

86.9 bn

2Rakuten Securities,
Inc. ※2

16.9 bn

3Mitsubishi UFJ Securities
Holdings Co., Ltd.

84.5 bn43

12.1 bn

SBI SECURITIES Co., Ltd.

49.5 bn

GMO CLICK
Securities, Inc ※2

5Rakuten Securities, Inc. ※2

16.9 bn

4Matsui Securities
Co., Ltd.

11.2 bn5au Kabucom
Securities Co., Ltd.

3.7 bnTRADERSHOLDINGS CO., LTD

3.7 bnMonex, Inc.

3.2 bn6Mizuho Securities Co., Ltd.

7

GMO CLICK
Securities, Inc. ※2

12.1 bn

68

Matsui Securities Co., Ltd.

11.2 bn

7

9Tokai Tokyo FinancialHoldings, Inc.

6.3 bn10

IwaiCosmo Holdings, Inc.

5.1 bn11TRADERSHOLDINGS CO., LTD

3.7 bn※ At the time of publication of this document, each company is in theprocess of announcing its financial results for FY 2024/3, and all
information is not available. Therefore, the content of the Company's own
research based on the information of each company announced for theFY 2023/3 is described.

※2 Figures for companies whose fiscal year ends inDecember are those for the FY 2022/12.
※3 Operating profits are shown for IFRS companies.

13.6 bn

Ordinary income

24Key Management Indicators - Operating Income Margin and ROE✓ New Medium-Term Management Plan Aims to Maintain High Operating Revenues andHigh Return on Equity
New Medium-Term Management Plan

（Billions of yen）

Aiming for an operating income margin in the 40% range

1034.4%

Operating IncomeMarginROE028.0%

33.5%

40.7%43.7%

200.0
26.4%

30.3%

25.6%

0ー Operating revenue(0) under custody■ Assets
(0)
(1)

6.85

65.0

250.0

9.19

10.1

Aiming to maintain ROE in the 25% range
150.0

11.8
145.0
130.0

7.08

115.0

100.0

101.0
69.1

80.3
50.0

(1)
(1)

0.0
FY 2021/3

FY 2022/3

FY 2023/3

FY 2024/3

FY 2025/3

FY 2026/3

FY 2027/3
25

Shareholder returns✓ Shareholder Return Policy:
Stable dividends with a consolidated DOE ratio of 4%
Implementation of flexible share buybacks✓ Be aware of the return on equity (cost of capital) from the investor's perspective.
Aim to maintain a high return on equity while securing a growth framework for future business areas byreinvesting retained earnings in equity.
✓ Annual dividends from the FY 2023/3, when the shareholder return policy was established, weredetermined with a DOE of 4% or more.
（Millions of yen）

4.8%

2,000

4.1%

4.0%
3.5%

1,500
1,000ーDOE■Purchase of treasury stock■ Total amount of dividends

791705302

50001,379

291320320488

FY 2021/3

FY 2022/3

FY 2023/3673673

FY 2024/3

FY 2025/3

FY 2026/3

FY 2027/326

We aim to be listed on the TSE PRIME market.
✓ We will continue to work on improving our corporate value to meet the market capitalization criteria ofover 25 billion yen.
✓ We will further fulfill the Corporate Governance Code, establish an administrative structure appropriate
for a prime market listing, and strengthen our personnel structure to enable sustainable growth.
✓ When these are fully in place, we would like to apply for an initial listing on the prime market.

CorporategovernanceMarketcapitalization

Managementsystem
27

Cautionary statement regarding this document
This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated document
and the Japanese original, the original shall prevail.
Forward-looking statements such as business strategies, target figures, and forecasts contained in thismaterial are based on information currently available to the Company and actual results may differ
materially from these statements due to various uncertainties and other risks, including future
economic conditions, business environment, and trends in the foreign exchange market.

In addition, some figures, such as market share and market size, are estimates made by the Companyand may differ depending on research methods and other factors.
This material is not intended as a solicitation to invest.
Inquiries about this material
TRADERS HOLDIONGS CO.,LTD.
ir@tradershd.co.jp
28

Copyright © TRADERS HOLDINGS CO., LTD. All Rights Reserved.