Basic Report (Issued by The Stock Research Center)

SBI RHEOS HIFUMI (165A TSE Growth)July 18,2024

Management and sale of publicly offered investment trusts
This report is an English translation of part of the report issued on July 5, 2024.
For inquiries concerning the report, please contract info@stock-r.org【165A SBI RHEOS HIFUMI Sector：Securities and Commodities Futures】
Fiscal YearNet sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfit

YoY

EPS

BPS

DPS

(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

Mar. 2023

9,660

1.9

1,610-17.5

1,625-17.4

1,087-16.6

90.5

474.4

27.5

Mar. 2024

10,309

6.7

1,780

10.5

1,797

10.6

1,313

20.8 103.9

534.2

36.0

---------

TBD

Mar. 2025 CE-

Mar. 2025E

12,320

19.5

2,405

35.1

2,417

34.4

1,674

27.5 129.7

625.9

45.0

Mar. 2026

E

13,650

10.8

2,682

11.5

2,694

11.5

1,870

11.7 144.8

723.7

50.0

Mar. 2027

E

15,284

12.0

3,127

16.6

3,139

16.5

2,184

16.8 169.1

840.8

58.0

Note: CE(company expectations),E(Stock Research Center expectations)
Source: Stock Research Center

1. Corporate Overview
SBI RHEOS HIFUMI is a holding company whose core subsidiary is asset managementcompany Rheos Capital Works. This subsidiary manages and sells investment trusts underthe Hifumi brand, such as the Hifumi Plus Fund, which boasts one of the largest total net
assets among Japanese investment trusts that invest primarily in Japanese stocks.
Investment trust management fees from the investment trust management businessaccounted for 98.6% of operating revenue of fiscal year ended March 2024. The balance ofassets under management totaled 1,368.8 billion yen at the end of fiscal year ended March
2024. Of the total, 982.2 billion yen was sold through sales partners such as securities
companies and banks.

2. Financial Analysis
Net sales increased by an average of 17.8% per year from fiscal year ended March 2018(non-consolidated) to fiscal year ended March 2024 (consolidated) due to the increase inassets under management. Meanwhile, the average annual growth rate of ordinary profit
over the same period was only 8.1%. This was primarily attributable to the deterioration in
the operating revenue commission expenses ratio due to a higher proportion of publicly
offered investment trusts sold through distribution sales partners.

3. Non-Financial Analysis
The source of the company’s intellectual capital comes from its ability to manage and build
a following for its investment trusts.

4. Corporate Strategy Analysis
SBI RHEOS HIFUMI aims to popularize asset formation by conveying the appeal ofinvestment and knowledge about money through a variety of media and by developing andproviding a system that enables anyone to begin asset building easily and safely. Thecompany also believes that investments in installments are the basis of asset building.

Newly Listed Company Introduction Report

1/2

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accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

Basic Report (Issued by The Stock Research Center)

SBI RHEOS HIFUMI (165A TSE Growth)July 18,2024

5. Analyst Evaluation
Based on fiscal year ending March 2024 results, fund inflows and outflows for investment
trusts from April to May, the company's policies, and other factors, we forecast a 19.5%
year-on-year increase in revenue and a 35.1% year-on-year increase in operating profit for
fiscal year ending March 2025.
Given the company’s plans to introduce a crossover fund that will invest from the unlisted
stage and continue to hold the shares following listing, we anticipate double-digit revenue
and profit growth in fiscal years ending March 2026 and March 2027.

Newly Listed Company Introduction Report

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accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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