April 30, 2020

To whom it may concern

Japan Securities Finance Co., Ltd.

Announcement concerning revision of shareholder return policy

Japan Securities Finance Co., Ltd. (herein after “JSF”) today announced that its Board ofDirectors approved to set new shareholder return policy, as detailed below.

1. Basic Policy
Solid equity capital to secure the financial health and management stability that society
demands of the company as the infrastructure of securities market, and provide stable longterm return of profits to shareholders by comprehensively considering revenues environment
or investment plan, etc.
Based upon this policy, we will strive to place more importance on shareholders return.

2．Shareholder Return Policy(1) Dividend Payment Policy
Our policy is that the consolidated payout ratio, as a standard that reflects our businessperformance, shall not fall below the 60% level and that we shall strive to provide stabledividends that are not temporarily affected by earnings fluctuations.

(2) Share Buyback Policy
With a view to offering even more rewarding returns to shareholders, we will buy backshares as appropriate while comprehensively considering the company's financial situation,
equity capital levels, and stock price levels, and so forth.

※The fiscal year-end dividend (planned) for the year ended March 31, 2020, which wasannounced today in the financial results summary, was decided based on the new policy.
The year-end dividend for the fiscal year ending March 31, 2020 will be approved at theBoard of Directors meeting held in May.

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(Reference) Comparison between the Old and New Figures in "2. Shareholder Return Policy"New
1. Basic Policy
Solid equity capital to secure thefinancial health and management
stability that society demands of thecompany as the infrastructure of
securities market, and provide stablelong-term
returnofprofits
toshareholders
bycomprehensively
considering revenues environment orinvestment plan, etc.
Based upon this policy, we will strive toplace more importance on shareholders
return.
2. Shareholder Return Policy(1) Dividend Payment Policy
Our policy is that the consolidated
payout ratio, as a standard that reflects
our business performance, shall not fall
below the 60% level and that we shallstrive to provide stable dividends thatare not temporarily affected by earnings
fluctuations.

(2) Share Buyback Policy
With a view to offering even more
rewarding returns to shareholders, wewill buy back shares as appropriate
while comprehensively considering thecompany's financial situation, equity
capital levels, and stock price levels.

Old
1. Basic Policy(Same as the present)

2. Shareholder Return Policy(1) Dividend Payment Policy Our policy is that the consolidated
payout ratio, as a standard that reflects
our business performance, shall not fall
below the 60% level and that we shallreturn profits to shareholders while
taking into account the consolidated
dividend on equity ratio.
 We will strive to pay stable dividends
that are not affected by temporary
fluctuations in business performance.
(2) Share Buyback Policy With a view to even more rewarding
returns to shareholders, we will buy
back shares as needed in future whileconsidering the company’s financial
situation, stock price levels, and soforth.

endThis is the English translation of the document originally written in Japanese for non-Japaneseconvenience. Although Japan Securities Finance intends to faithfully translate the Japanesewritten documents into English version, the accuracy and correctness of translation are notguaranteed, so you are kindly encouraged to refer to the original Japanese version of thedocument.

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