Financial Results for the Three Months Ended
June 30, 2024 (FY 2025/3 1Q) - Excerpt
TRADERS HOLDINGS CO., LTD.
Securities Code: 8704
July 31, 2024

This document has been translated from the Japanese original for reference purposes
only. In the event of any discrepancy between this translated document and theJapanese original, the original shall prevail.

The TV commercial featuring Hiroiki Ariyoshi is airingwith rave reviews!

01 Financial Highlights of FY 2025/3 1Q
02 Forecast for FY 2025/3
03 Progress of Measures in FY 2025/3
to Achieve the Business Forecast
04 Capital Policy
05 Appendix

Highlights of FY 2025/3 1Q

FY 2025/3 1Q Executive Summary
Against the backdrop of the historically weak yen and interest rate differentials, the strategy of promoting
swaps of high-interest rate currencies was successful, and assets under custody maintained steady
growth.
Record quarterly operating revenues and operating (recurring) income were recorded due to localized
high volatility caused by sharp market fluctuations resulting from the BOJ's largest-ever foreign exchangeintervention.
FY 2024/3 1Q
FY 2025/3 1Q
QOQ
Operating revenue

2,840
Millions of yen

Operating income

1,593
Millions of yen

3,513+23.7 ％

2,054

+29.0 ％

Millions of yen

Millions of yen

5Topics for the FY 2025/3 1Q
Operating revenue

3.5

Billions of yen

QOQ

+0.6

Billions of yen

Based on a customer base in which assets under custody are steadily increasing, foreign exchange intervention of about 9.8 trillion yen,
the largest ever, caused a large fluctuation in the market, and operating revenue increased in the U.S. dollar / yen and cross yen.
By currency, the exchange rate of the Mexican peso against the yen, on which the Company is focusing its efforts, fluctuated significantly due
to the presidential election in Mexico. As a result, the Company recorded a record quarterly operating revenue.
.

SG&A expenses

1.4

Billions of yen

QOQ

+0.2

Billions of yen

SG&A expenses were largely unchanged overall, although transaction-related expenses increased due to aggressive upfront investment inadvertising to achieve a large increase in assets under management, and personnel expenses increased due to continued strengthening of
human capital investment to practice high-wage management.

Operating profit ratio

58.5 %

QOQ+2.4 %

SG&A expenses remained flat overall, despite an increase in personnel expenses due to the acquisition of talented personnel and thepractice of high wage management. Since fixed costs are the main component, the large increase in operating revenue directly led to anincrease in operating income, resulting in a high operating margin.

Assets under custody

106.6

Compared with
Billions of yen（ As of June 30, 2024 ）the end of FY 2024/3+5.6

Although the largest-ever foreign exchange intervention caused a large amount of client realized losses and a temporary decline
in assets under custody at the end of April, the marketing strategy that was improved last year is showing steady results,
and the newly launched consulting service for large clients is taking off. In addition, the newly launched consulting
service for large clients is taking off, resulting in a 5.6 billions of yen quarterly increase in assets under custody.

Billions of yen

6Quarterly Consolidated Financial Results
Operating revenues, operating (recurring) income and quarterly net income reached a record high on
a quarterly basis due to the steady expansion of the customer base and market fluctuations.
FY 2024/3

FY 2025/3

QOQ[Millions of yen]

1Q

2Q

4Q

1Q

Operatingrevenue

2,840

1,773

3,216

2,273

3,513

Operatingincome

1,593

269

1,905

644

2,054

(56.1%)(15.2%)(59.2%)(28.3%)(58.5%)

1,582

263

1,907

636

2,051

(55.7%)(14.9%)(59.3%)(28.0%)(58.4%)

1,312

193

1,372

456

1,485

(46.2%)(10.9%)(42.7%)(20.1%)(42.3%)（2023 Apr. to June） （2023 July to Sep.）[Profit margin]

Ordinary
income[Profit margin]

Quarterly net
income[Profit margin]

3Q（2023 Oct. to Dec.）（2024 Jan. to Mar.） （2024 Apr. to June）+23.7%+29.0%+29.6%+13.2%
7

Progress Rate of Quarterly Consolidated Results
Operating revenue was approximately 30%, and operating income, ordinary income, and net income ended the firstquarter with a high progress rate of over 40%. The percentage of assets under custody was approximately 40% as ofthe end of June, and the company is on track to achieve its annual target of 115 billion yen.

FY 2025/3 Forecast

1Q actual results

Operating revenue

3,513（Millions of yen）

Progress rate

29.8%

11,800Millions of yen

Operating income

2,054 （Millions of yen）

Progress rate

41.1%

5,000
Millions of yen

Ordinary income

2,051 （Millions of yen）

Progress rate

41.0%

5,000
Millions of yen

Quarterly net income

1,485 （Millions of yen）

Progress rate

43.7%

3,400
Millions of yen

Assets under custody+5.6 （Billions of yen）

The end of March 31, 2024
101 billion yen

25％

Progress rate
The end of June 30, 2024
106.6 billion yen

40.1%

115
Billions of yen

8Business Results [Operating revenue]✓ Steady expansion of the customer base and market fluctuations led to record quarterly operating revenues.
（Millions of yen）

3,513

3,216
2,458

2,397

1,893

2,066

2,840

2,317

2,273

2,021

1,773

1,553 1,569

2022
1Q

2022
2Q

2022
3Q

2022
4Q

2023
1Q

2023
2Q

2023
3Q

2023
4Q

2024
1Q

2024
2Q

2024
3Q

2024
4Q

2025
1Q
9

Transition of SG&A Expenses✓ To achieve a significant increase in assets under management in the next three years, the company plans
to invest aggressively in advertising expenses.
✓ FY 2025/3 Q1 advertising expenses were about the same as in the previous quarter. New client acquisitions andadditional deposits increased, improving efficiency.
*Effective from FY 2024/3, certain personnel and other expenses that were included in "Cost of Sales" are now included in "Selling, General and Administrative Expenses."
Therefore, the figures for the previous fiscal year and the two previous fiscal years have been reclassified in the same manner.

213
151[Millions of yen]123
Others

111

100

101

130

163

160
175

182

SG & A

406

475

560

742

587

567

494

Personnel

478

expenses

Trading

160

188
188

410

166

218

162

Real estate
expenses

166

579

614

561

453

related

574
339

439

457

486

expenses

Total SG&A

1,223

1,268

1,286

1,383

1,194

1,462

1,263

1,579

1,431

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

FY 2023/3

FY 2024/3

FY 2025/3

10

Transition in Assets Under Custody✓

We continue to offer the industry's highest spreads and swaps on Minna-no FX andLIGHT FX, and our products themselves are highly competitive.

✓

The new marketing strategy changed last year has improved the efficiency of customer acquisition, and the number of new accounts and theamount of deposits have significantly improved in relation to the advertising cost.
Newly launched consulting strategy for large clients is on track, and assets under custody of large clients are on a net increase trend.
The marketing strategy to acquire new clients and additional deposits and the consulting approach to large clients have both contributed tothe increase in assets under custody, and the pace of increase has been steadier than ever before.

✓
✓

106.6
106.6

101.0

96.1

（Billions of yen）

94.4

88.2
80.3
68.4

70.2

65.0

4Q

FY 2021/3

1Q

2Q

73.3
68.3

69.1

3Q

4Q

FY 2022/3

1Q

75.5

74.6

2Q

3Q

FY 2023/3

4Q

1Q

2Q

3Q

FY 2024/3

4Q

1Q

FY 2025/3
11

Comparison of Other Companies in the FX industry in Termsof Assets Under Custody.
✓

Assets under custody totaled 106.6 billion yen as of June 30, 2024, a solid start toward reaching the TOP 3 by March 31, 2027.
* Out of 47 OTC FX registered members of the Financial Futures Association of Japan (as of the end of June 2024)✓

Only 3 major companies, including our Company, had an increase in assets under custody during the 3-month period from April
to June 2024.
Changes in assets under custody(2023-present)[Billions of yen]*
A Company

260

Schedule of Changes in Assets Under Custody(April-June 2024)
120
12

+10.3

240

80
8

220

～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～

200
140
140
180
120
120

2023年

2023年

2023年

2024年

2024年

4月

7月

10月

1月

4月

+5.6

C Company

40
4

D Company

00

+0.8
8

Our Company

100
100

(0)

(4)
▲40
80
80
Mar.2023

June.2023

Sept.2023

Dec.2023

Mar.2024

June.2024*Only companies with assets on deposit of 100 billion yen or more are shown.

All but threecompanies did notrecover from thedecline associatedwith losses realized bycustomers due to the
BOJ's foreignexchange intervention,
and assets undercustody declined.

A
Company

Our
CompanyC
CompanyD
Company(0.8)▲8ECompany(2.3)
FCompany

Increasing
companies
12

Market Review for the FY 2025/3 1Q (i)Market Overview

USD/JPY（ Daily chart ）June.2024

In 1Q, there was a period of high volatility
in April and May, when the Bank of Japan

Apr.2024

intervened to buy about 9 trillion yen.
In June, the yen continued to depreciate,
and while there was always a sense of
caution about intervention, the U.S.
Treasury Secretary's negative opinion on
foreign exchange intervention led to further

May.2024

June,2024

May,2024
April,2024
April 29
BOJ's 5.5 trillion yen-buying intervention

12月
May
2
BOJ's 3.5 trillion yen-buying intervention

June 20
Adding Japan to the currency
manipulator watch list in
the U.S. Treasury Department's
Foreign Exchange Report.
June 28
Treasurer Kanda
announces retirement in July.

depreciation of the yen to the 161-yen level,
the highest level in 37 years since
December 1986.

13

Market Review for the FY 2025/3 1Q (ii)
The market environment continues to be active, with OTC FX trading volume remaining at a high level on FX trading
and will continue to be active in 2023.
OTC FX Trading Volume (Domestic)
The change of government
in the UK triggered a sharp
fall in the value of the poundand currency intervention by
the BOJ.

1,400

1,200

1,000

BOJ adjusted its
monetary easing.

SVB bankruptcy
Credit Suisse
management crisis.

BOJ YCC
revision
Largest ever
YCCforeignabolished
by
the
BOJ.
exchange

Widening of the JapanU. S. interest rate
differential.

intervention

800
Russia's invasionof Ukraine.
600

400

200

0
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.

2021

Source from the Financial Futures Association of Japan (FFAJ)

2022

2023

2024

14

Market Review for the FY 2025/3 1Q (iii)
Historical volatility was on a temporary downtrend, but recovered slightly in the 1Q of FY 2025/3.
Increased local volatility due to currency intervention in April and May.

Historical volatility * (USD / JPY)
20

3,216

Operating revenue (Millions of yen)
Historical volatility

2,840
2,397

15
1,893

10

3,513

1,553

1,569

1Q

2Q

2,066

2,021

2,317

2,273

2,458
1,773

5

0
3Q
FY 2022/3

4Q

1Q

2Q

3Q

4Q

1Q

FY 2023/3* Historical volatility is one of the technical analysis methods and is the rate of price fluctuation statistically calculated based on historical data.
If past price fluctuations are small, historical volatility will be small, and if past price fluctuations are large, historical volatility will be large.
The figure above is calculated based on price fluctuation data for the past 60 days, which is a quarterly accounting period.

2Q

3Q
FY 2024/3

4Q

1Q
FY 2025/3

15

Explanation of the Status of Assets Under Custody

Supplemental Materials

In the first quarter of this fiscal year, the yen appreciated sharply on several occasions, resulting in a decreasein assets under custody due to realized losses.
⇒ Succeeded in accumulating assets in excess of the decrease through the measures described below on page 20 and beyond.
USD/JPY（ 5-minute chart ）April 29, 2024

Currency intervention

USD/JPY（ 5-minute chart ）MXN/JPY（ 10-minute chart ）May 2, 2024 Currency intervention

June 4, 2024 Mexican Presidential Election
8.90

160.00159.400

157.441

157.508.847

159.008.80
156.508.75

158.008.70

155.508.65

157.00

Variation(3.5)%

154.50

Variation

Approx. 5.6 yen

156.00Approx. 4.5 yen

153.50(2.9)%

153.434

8.60

Variation
Approx. 0.372 yen(4.2)%

152.94155.00

12:05 12:35 13:05 13:35 14:05

8.85

8.55
8.475

8.45

152.50
4:30

5:00

5:30

6:20

6:50

8.50

15:00

16:00

17:00 18:00

19:00 20:00

16

Consolidated Net Assets, Consolidated Own Funds and Financial Security.
✓✓

With the expansion of business performance, consolidated net assets increased by 1 billion yen andconsolidated cash on hand increased by over 3 billion yen, strengthening financial security.
The capital adequacy ratio rose to 654.7%, and the margin ratio for stress tests also increased, increasing the18
company's capacity for future business expansion.
609.5%
654.7%
600.0%

16

466.1%
14（Billions of yen）

481.1%

397.8%

Consolidated own10
funds

400.0%

9.2

Capital Adequacy Ratio

6

16.2

10.2

Consolidated net assets

8

14.1
12.5

11.9

12

15.1

200.0%

7.7

7.3
5.9

0.0%

4
-200.0%2
0-400.0%FY 2021/3

FY 2022/3

FY 2023/3

Note; Consolidated own funds = Consolidated Cash and Deposits + Short-term Deposits - Interest-bearing Debt
[Short-term funds attributable to the Group, excluding cash segregated as deposits for customers]

FY 2024/3

June 202417

Forecast for FY 2025/3

18

Forecast for FY 2025/3✓ Since the Company's performance is affected by trends in foreign exchange rates,
the volatility of the Company's performance each quarter may be large.
✓ Despite the high rate of progress in the first quarter, the earnings forecast remains unchanged due to uncertainties in thesecond quarter and beyond.

[Millions of yen]

FY 2025/3 1Q（Results）

FY 2025/3(Forecast）

Rate of progress

Operating revenue

3,513

11,80029.8%

Operating income

5,000[Operating profit ratio]

2,054

41.1%

Ordinary income

2,051

5,000

41.0%

Profit attributable toowners of parent

1,485

3,400

43.7%

Assets under custody

106.6 Billions of yen

115.0 Billions of yen

40.1%（42.4%）

19

Progress of Measures in FY 2025/3
to Achieve the Business Forecast

20Initiatives for FY 2025/3 (Marketing)
The number of assets under custody and new accounts acquired increased
steadily as a result of the April-June 2024 cash-back campaign and strengthened
advertising efforts.
✓ Several attractive campaigns, such as the"Cashback Campaign up to 1% on Deposits"
and the "Swap Transaction Support
Campaign," contributed to the increase in
assets under custody.
✓ Steady increase in new account acquisitions
due to strengthened advertising measures, etc.
✓ To further increase the number of new
accounts opened by strengthening the appeal
to inexperienced FX investors.
21

Initiatives for the FY 2025/3✓ The PB agreement was signed in February 2024,
adding six foreign financial institutions as new covered entities.
✓ Expect further improvement in profitability in the future as more competitive prices are offered.

Prime Broker

Standard
Chartered Bank

Bank of America
UBS AG Corporation

Citi
Bank

* The Company entered into the agreement in February 2024 and began trading in April 2024.

JP
Deutsche
MORGAN Bank AG
Transactions begin in July

* We plan to add
new banks in the
future.

22

Initiatives for the FY 2025/3 (Large-lot customer strategy)
Royalty Consulting Department was newly established in April as a department specializing in large-lot customer
strategy. The department began implementing various measures to increase the volume of communication, and theassets under custody of large customers increased by 1.1 times in three months.
New definition of large-lot customers
・Redefine large-lot customers with high contribution from various perspectives such as
revenue and increase in assets under custody・We began supporting a diverse range of large customers that it had not been able toreach before.

Study Session only for large-lot customer was held on June 29.

Seminar with experts on future market outlook andeconomic trends.

Enhanced benefits exclusively for large-lot customers
・Holding seminars and study sessions exclusively for large customers, inviting experts.
・TRADERS Medical Support , an investor medical support program
utilizing medical professionals provided by Doctors Inc. , a portfolio company of our CVC
fund, is now available.

Individual consulting on a case-by-case basis

Former Goldman Sachs prop trader Rikio Shima (center photo)・ Clear understanding of customer needs through a system of assignments
Establishment of a system that enables individualized consulting by specializing in suchlarge customers.
・Increase in customer contact points and build good relationships with customers to
reduce defections.

Assets under custody increased due to additional deposits

Toru Nishihama, Chief Economist, Dai-ichi Life Institute (center of photo)23

Initiatives for the FY 2025/3 (AI Support Desk Progress)
FleGrowth Co., Ltd.: Selected as an IT introduction support business for "IT Introduction
Subsidy 2024" promoted by the Ministry of Economy, Trade and Industry AI Support Desk"is certified as a subsidized tool.
✓ The Ministry of Economy, Trade and Industry (METI) has selected
AI Support Desk for its IT introduction subsidy program, and small
and medium-sized enterprises (SMEs) that are eligible for thesubsidy can receive a subsidy of up to 1/2 of the introduction cost(maximum 1.5 million yen) when they newly introduce our services.

✓ The "AI Support Desk" was highly evaluated at AWS Summit Japanfor its speed to practical application, examples of effective use
within the company, and the start of external sales, and wasfeatured as a case study.

✓ Sales department started sales promotion to increase the numberof companies introducing the product, and the number of businessnegotiations is steadily increasing, partly due to external
evaluations.
24Capital Policy

25

Shareholder Returns✓ Shareholder Return Policy:
・Stable dividends with a target consolidated dividend on equity ratio (DOE) of 4%.
・Implementation of flexible share buybacks.
✓ The annual dividend for FY 2024/3 was 24 yen per share (interim dividend: 8 yen).
✓ FY 2025/3 interim dividend is planned to be 12 yen (based on 1/2 of the previous fiscal year's annual dividend).
4.8%[Millions of yen]

4.1%

4.0%
3.5%
1,500

1,379

1,000

705

500

ーDOE
■Purchase of treasury stock■Total amount of dividends(Dividend per share)

302

320

488

（10 yen）（11 yen）（17 yen）

FY 2021/3

FY 2022/3

FY 2023/3

291
0

791

673
（24 yen plan）

TBD
334

Interim Dividend
Forecast(12 yen plan)

FY 2024/3

FY 2025/3

26

About Stock Options✓ Introduced in FY 2024/3 as a measure to motivate Group executives and employees to contribute to the Group's
growth over the long term and to strengthen the acquisition of excellent external human resources.
✓ The 14th round of stock options to be exercised at this time will be granted to newly hired employees and those
who have been promoted.
✓ The shares to be issued upon exercise will not be newly issued, they will be allocated from treasury stock andused as an investment for growth.

Outline of the 14th Stock Option (Stock Acquisition Rights)
Number of stock acquisition rights 1,012 units (100 shares per unit)
Exercise price (of an option)
Exercise period

820 Yen (our closing price on July 16, 2024)

Exercisable in stages from July 18, 2026, to July 17, 2034.

27

Stock Information (Shareholding Composition)✓ The share of acquisitions by foreign corporations with strict investment criteria is increasing,and there is an increase in the percentage of treasury stock acquired through share buybacks.
✓ The company has been selected for the JPX-Nikkei Mid Small and is attracting attention from institutional investors.
100.0%

90.0%

80.0%

42.1%

42.6%

36.4%

36.2%

4.8%

9.1%

6.1%

9.9%

7.9%

46.7%
70.0%

57.9%

61.1%

63.3%

53.6%

55.5%

60.0%

50.0%

40.0%

35.1%
30.9%

30.0%

34.0%

31.3%
20.0%

31.3%

31.8%

5.9%

10.0%

0.0%

4.5%

0.4%

5.6%

6.4%
1.5%

6.0%

4.1%

4.3%

Sep.

Mar.

FY 2021/3

6.7%

FY 2022/3

0.7%

0.2%

0.1%

0.4%

Mar.

Sep.

0.1%

8.6%

2.7%

Sep.
FY 2023/3

1.0%
0.8%

3.7%

5.6%

Sep.

Mar.

2.8%

Mar.

FY 2024/3

28

Compliance with Requirements for Listing on the TSE Prime Market(as of the end of June 2024)
Sufficiently meets requirements for revenue base and financial condition against a backdrop of strong businessperformance.
We will continue to focus on strengthening governance and other organizational structures appropriate for a prime
market listed company as one of our top priorities in to achieve conformity requirements.
TSE Prime Listing Requirements

Status of the Company

Conformance Status

Total market value ofoutstanding shares(Billions of yen)

10

11.2

*1

〇

Market capitalization(Billions of yen)

25

22.9

*1

×

Earnings base (Total profits for the(Billions of yen)last two years)

2.5

8.1

〇

Financial position(Net assets)(Billions of yen)

5.0

15.1

〇

(Accounts)

800

7,203

*2

〇

(Shares)

20,00014,467,524

*2

49.0%

*2

〇
〇

Number of shareholders
Number of shares traded
Ratio of tradable shares

35.0%*1 Calculated based on the stock price of 778 yen per share as of the end of June 2024.
*2 Information as of the end of March 2024 is used for shareholder register information.
29

Appendix
Appendix30

Our company was selected as an index component as a company
with high investment attractiveness.

Our company was selected as a constituent of"JPX-NIKKEI Mid Small".

Selected for inclusion in the JPX-Nikkei Mid Small, which includes "companies with high investment
attractiveness for investors" such as efficient use of capital and investor-conscious management perspectives(included on August 31, 2023).
Re: JPX-NIKKEI Mid Small✓

A stock price index calculated jointly by JPX Research Institute and Nikkei Inc. that applies the same concept as the JPX Nikkei 400
to small- and mid-cap stocks and is composed of companies that are engaged in sustainable corporate value enhancement andshareholder-oriented management.

✓

The top 200 stocks are selected from the Tokyo Stock Exchange's Prime, Standard and Growth markets based on a scoring ofquantitative indicators plus qualitative factors✓

The stocks selected for 2023 were 177 companies in the Prime market, 12 companies in the Standard market, and 11 companies in
the Growth market, with the overwhelming majority of companies listed in the Prime market.
31

Cautionary statement regarding this document
This document has been translated from the Japanese original forreference purposes only. In the event of any discrepancy between thistranslated 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 Company and 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

32

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