Information Meeting for First Half of Fiscal 2008
SBI E*TRADE SECURITIES〜Six months ended September 30, 2007〜
October 30, 2007
SBI E*TRADE SECURITIES Co., Ltd.
Code 8701
This presentation was prepared for the purpose of explaining the operations and business strategies of SBI E*TRADE SECURITIES. This is not a solicitation to purchasestock or other securities issued by the company. SBI E*TRADE SECURITIES makes no guarantee that this information is complete or that strategies or other goals will beaccomplished. In addition, the contents of this presentation may be revised or deleted without prior notice.

1.Financial Highlights

Consolidated Financial Highlights for First Half of Fiscal 2008
Achieved growth in revenues and earnings due to growth in trading volume anddiversification of profit structure（Unit: Million yen, %）First half of FY07
First half of FY08
（April ‘06〜Sept ‘06） （April ‘07〜Sept. ‘07）

YoY change

Operatingrevenues
Net operating
revenues

28,57432,578+14.0

26,792

29,249+9.2

Operating income

12,212

12,658+3.6

Ordinary income

12,46812,539

+0.6

6,972

7,334

+5.2

Net income

Note: Ordinary income was up 4.2% YoY after excluding a one-timecharge for an allowance for losses associated with certain securities.

<3>

Fiscal 2007 and 2008 Consolidated Quarterly Financial Highlights
Clear return to revenue and earnings growth due to end of impact ofbrokerage commission reduction in Q1 of fiscal 2007.
（Unit: Million yen, %）Fiscal 2007
2nd quarter（July〜Sept. ‘06）

3rd quarter（Oct.〜Dec. ‘06）

Fiscal 2008
4th quarter（Jan.〜Mar. ‘07）

1st quarter（Apr.〜June ‘07）

2nd quarter（July〜Sept. ‘07）

YoYchangevs.
prior
quarter

Operatingrevenues

12,882 13,737 15,100 15,440 17,138+33.0 +11.0

Net
operatingrevenues

11,905 12,642 13,861 14,115 15,133+27.1 +7. 2

Operatingincome

5,043

5,803

6,527 6,113

6,544+29.8 +7. 0

Ordinary
income

5,077

5,744

6,358 6,112

6,426+26.6 +5. 1

Netincome

2,789

3,191

3,646 3,221

4,113+47.5 +27.7<4>

Highlights of First Half of Fiscal 2008 Consolidated Performance
Diversification of profit structure produces year-on-year and quarter-on-quarter growth in revenues and earnings despite
challenging market conditions（1）Brokerage commissions・・・Down 5.9% YoY to 15,458 million yen• 1,498,757 customer accounts (end of Sept. ’07). 92,860 new accounts during the first half (avg. of 15,476 accounts permonth)• Share of retail brokerage trading value rose to an all-time high of 34.1% in the first half.
（2）Financial revenues・・・Up 40.6% YoY to 11,549 million yen• Big increase of about 34.8% in net financial revenues to 8,671 million yen mainly because of growth in use of internal financing.
• 158,265 customer accounts (end of Sept. ’07). 10,606 new accounts during the first half (avg. of 1,767 accounts per month)（3）Underwriting, offering and selling commissions・・・Up 76.2% YoY to 1,460 million yen• Big increase in sales of investment trusts. Selling commissions and trust fees both set new records.
• Ranked first among Japanese securities companies by underwriting 31 issues.
（4）Trading gains and others・・・Up 32.6% YoY to 4,110 million yen• Revenue from foreign exchange margin trading reached an all-time high. Bond sales were also strong.
（5）Selling, general and administrative expenses• Higher transaction-related expenses due in part to investment trust “cash back” campaign, but clerical expenses declined.
（6）Consolidated subsidiaries• Benefiting in part from favorable market conditions, E*TRADE Korea Co., Ltd. posted 68.5% growth in operating revenues
and a 108.4% increase in net income.
<5>

First half highlights（1）Consolidated Brokerage Commissions（Brokeragecommissions:million yen）

18,000Brokeragecommissions
Down 5.9%

16,431
41,64415,00012,000Brokerage
trading value
Up 10.8%

15,458（Brokeredtransactions:billion yen）

60,00046,13248,00042,000Brokeragecommissions

9,000

54,00036,00030,000Brokeredtransactions

6,000

24,00018,00012,000

3,000

6,000

0

0
First half of fiscal 2007
（Apr. ‘06〜Sept. ‘06）

First half of fiscal 2008
（Apr. ‘07〜Sept. ‘07）
<6>

（1）Brokerage Commissions

Customer accounts at major online securities companies
Customer accounts at big five online securities
companies

Growth in customer accounts at big five online
securities companies（September 30, 2007）(April 2004 through September 2007)（Accounts）

1,600,000（Accounts）

1,498,757

1600000
1500000

October 3, 2007
First for an online
securities company

1,400,000

1,200,000

1.5 million customer
accounts

1,000,000

1400000
1300000

Continued to surpass
competitors byadding 92,860
accounts

SBI E*TRADE
1,498,757

1200000

Monex
796,666

1100000
1000000

800000

Rakuten728,183

700000

Matsui

597,898 600000
500000699,161
Kabu.com

400000597,898

900000796,666

800,000

728,183 699,161

600,000

400,000

300000200000200,000

100000SBIE*TRADE

Monex

RakutenMatsuiKabu.com

Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr
2006
2007
2004
2005

Jul

Oct

Source: Compiled by SBI E*TRADE SECURITIES based on Web sites and other public information for each company<7>*Monex is the sum of Nikko Beans and Monex. Kabu.com merged with MeNet in January 2006.

（1）Brokerage Commissions

New accounts at major online securities companies（new accounts）

200,000

187,753

New accounts during year ended September 2007
2Q(Apr-Jun 2007)
1Q(Jul-Sep 2007)
4Ｑ（Jan-Mar 2007）
3Ｑ（Oct-Dec 2006）

2Q

47,993150,000
1Q

44,867100,000

Only SBI E*TRADE
achieved a YoY increasein quarterly new
customer accounts.

106,71196,446

23,675
22,6384Q

54,321

28,96023,66450,00030,13473,707

14,918

17,117

16,17018,17530,57923,22623,942

19,56522,52818,799

Rakuten

Monex

MatsuiKabu.com

3Q

40,572

76,842

19,6160
SBI E*TRADE

Source: Compiled by SBI E*TRADE SECURITIES based on Web sites and other public information for each company<8>

（1）Brokerage Commissions

Change in SBI E*TRADE basis
Basis since 2Q of Fiscal 2006

（Basis）

6.0

July 1, 2005 Loweredcommissions

5.2

5.0

June 1〜August 31, 2006
Conducted reduced commission
campaign

4.3

September 1, 2006 End of campaign
Introduced new commission structure

4.4
4.0

4.0
October 3, 2005
Lowered commissions

3.1

3.2

3.0

3.0

2.8

2.7

2.0
2Q

3Q

Fiscal 2006

4Q

1Q

2Q

Fiscal 2007

3Q

4Q

1Q

2Q

Fiscal 2008

Note: Quarterly index calculated by dividing non-consolidated brokerage commissions by brokered trades, using brokerage commissions as shown in the kessan tanshin. <9>

（1）Brokerage Commissions

Basis at major online securities companies
Basis at big five online securities companies（Basis）（Brokerage commissions / Brokerage trading value）

12.0

First half of fiscal 2007
First half of fiscal 2008

10.0

8.4

11.3

11.4

10.4

8.9

8.0
7.6

6.0
4.0
2.0

4.8

3.5
4.4
2.8

0.0
SBI E*TRADE

Kabu.com

MBH

MatsuiRakutenSource: Compiled by SBI E*TRADE SECURITIES based on Web sites and other public information for each company
Cumulative figures for April through September. Brokerage commissions as shown in the non-consolidated kessan tanshin.

<10>

（1）Brokerage Commissions

Brokerage trading value at major online securities companies
Semiannual brokerage trading value index for big five online securities companies（Index）(Index using 100 for first half of FY07)
SBI*ETRADE
Matsui

SBI E*TRADE
110.8

Monex
Rakuten110

Kabu.com
Retail brokerage

Total retail 93.5
Rakuten 89.2
Kabu.com 89.2

90

Monex 84.9
Matsui 75.2
70

1st Half
Fiscal 2007

2nd Half

1st Half
Fiscal 2008

Source: Compiled by SBI E*TRADE SECURITIES based on Tokyo Stock Exchange and JASDAQ materials and Web sites and other public information for each company<11>*Retail brokerage transactions are sum for Tokyo, Nagoya and Osaka exchanges and JASDAQ.

（1）Brokerage Commissions

Monthly brokerage trading value in fiscal 2008
Daily brokerage trading value from April to October 2007
(Index)(Index using 100 for April 2007)

111
110

（Note 2）

111

111

104
100
103

90

70

89

（2nd quarter）（1st quarter）
Apr
2007

May

June

July

Aug

（3rd quarter）
Sept

Oct

Notes: 1. Uses preliminary figures (based on trade dates).
2. October data is as of October 26.

（Note 2）<12>

（1）Brokerage Commissions

Brokerage trading value at major online securities companies
Average daily trading value at big five online securities companies（million yen）

Daily trading value in
September 2007
（million yen）

(January 2004 to September 2007)

500,000

SBI E*TRADE
320,943

400,000

300,000

Rakuten
115,756

200,000

100,000

0
Jan

2004

Apr

Jul

Oct

Jan

2005

Apr

Jul

Oct

Jan

2006

Apr

Jul

Oct

Jan

Apr

Jul

Matsui64,978Monex
63,576
Kabu.com
49,7302007

Source: Compiled by SBI E*TRADE SECURITIES based on Tokyo Stock Exchange and JASDAQ materials and Web sites and other public information foreach company. Monex is the sum of Nikko Beans and Monex. Kabu.com merged with MeNet in January 2006.
<13>

（1）Brokerage Commissions

Brokerage trading value at big three securities companies（billion yen）
30,000Changes in brokerage trading value
Share of brokerage trading
value as of 2Q of FY08

25,000SBI E*TRADE
23,109（8.9%）
20,000Surpassed Nomura Securities
in 4Q of FY05

Nomura 16,785（6.5%）

15,000Daiwa SMBC 8,410(3.2%)

10,000

5,000

Nikko Citigroup 6,866(2.64%)
Matsui 4,930 (1.9%）
Daiwa 3,482(1.3%)

0

Nikko Cordial 1,214 (0.4%)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY08
FY02
FY07
FY06
FY03
FY04
FY05
Source: Compiled by SBI E*TRADE SECURITIES based on public information for each securities
company and the TSE (SBI E*TRADE includes orders from overseas investors).

(Unit: billion yen, figures in parentheses are share of<14>
brokered transactions at the three major exchanges)

（1）Brokerage Commissions

Share of retail brokerage trading value at major online securities companies
SBI E*TRADE first half exceeds the combined share of the other four companies.
Change in share of retail brokerage trading valueFirst half of fiscal 2006
（April〜Sept. ‘05）

Others
41.7％

Big five
onlinesecurities
58.3％

First half of fiscal 2007
（April〜Sept. ‘06）

Others35.4％

Big five
onlinesecurities
64.6％

First half of fiscal 2008
（April〜Sept. ‘07）

Others33.5％

Big five
onlinesecurities
66.5％

SBI E*TRADE

23.2％

SBI E*TRADE

28.8％

SBI E*TRADE

34.1％

Rakuten

10.9

Rakuten

13.7

Rakuten

13.0

Matsui

10.7

Matsui

9.5

Matsui

7.7

Monex

8.5

Monex

6.6

Monex

6.0

Kabu.com

5.1

Kabu.com

6.0

Kabu.com

5.7

Source: Compiled by SBI E*TRADE SECURITIES based on Tokyo Stock Exchange and JASDAQ materials and Web sites and other public information for each company*Retail stock brokerage transactions are sum for Tokyo, Nagoya and Osaka exchanges and JASDAQ.
Monex is the sum of Nikko Beans and Monex. Kabu.com merged with MeNet in January 2006.
<15>

（1）Brokerage Commissions

Share of retail margin trading value at major online securities companies
Change in share of retail margin trading valueFirst half of fiscal 2006
（April〜Sept. ‘05）

Others
26.5％

Big five
onlinesecurities
73.5％

SBI E*TRADE

28.8％

First half of fiscal 2007
（April〜Sept. ‘06）

Others25.8％

Big five
onlinesecurities
74.2％

SBI E*TRADE

33.9％

First half of fiscal 2008
（April〜Sept. ‘07）

Others
24.6％
Big five
onlinesecurities
75.4％

SBI E*TRADE

38.8％

Matsui

15.7

Rakuten

14.7

Rakuten

15.2

Rakuten

12.6

Matsui

12.1

Matsui

9.1

Monex

9.5

Kabu.com

7.3

Kabu.com

6.6

Kabu.com

7.0

Monex

6.2

Monex

5.8

Source: Compiled by SBI E*TRADE SECURITIES based on Tokyo Stock Exchange and JASDAQ materials and Web sites and other public information for each company*Retail stock brokerage transactions are sum for Tokyo, Nagoya and Osaka exchanges and JASDAQ.
Monex is the sum of Nikko Beans and Monex. Kabu.com merged with MeNet in January 2006.
<16>

（1）Brokerage Commissions(Reference) Assets in customer accounts
YoY change
+2.9％
+11.1
billion（100 million yen） 39,394
40,000Sep. 2006
Sep. 2007

38,284

YoY change+3.3％+65.2 billion

30,00020,037

20,68920,000YoY change-5.3％-89.6 billion
16,876

15,980YoY change+4.6％+58.6 billion
13,29912,713

YoY change+3.2％+37.3 billion
11,883
11,51010,0000
SBI*ETRADE

Monex

MatsuiRakutenKabu.com

Source: Compiled by SBI E*TRADE SECURITIES based on Web sites and other public information for each company<17>

（1）Brokerage Commissions

Growth in futures and options transactions
Now conducting reduced commission campaign for mini-Nikkei-225 futures(Accounts)
35,000（thousand yen）

Futures and options
accounts

Futures and optionscommissions 418,559

450,000

33,58330,000385,916
367,998

400,000

350,000

300,000

25,000322,010315,322315,186
302,436

279,472

250,000

20,000200,000

15,000140,450
150,000

10,000100,000

5,000

50,0000
4 5 6 7 8 91011121 2 3 4 5 6 7 8 9101 1121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 9

2004

2005

2006

2007

0
2Q

3Q

Fiscal 2006

4Q

1Q

2Q

Fiscal 2007

3Q

4Q

1Q

2Q

Fiscal 2008 <18>

First half highlights(2) Consolidated financial revenues（million yen）

12,000Financial revenues

11,549Net Financial revenues

10,000
8,000

8,213
6,430

6,000
4,000

Financial
revenues
up 40.6%

8,671

Net financial
revenues
up 34.8%

2,000
0First half of fiscal 2007
（April〜Sept. ‘06）

First half of fiscal 2008
（April〜Sept. ‘07）
<19>

（2）Financial revenues

Margin accounts at major online securities companies（Margin accounts）

160,000

Margin accounts at big five online
securities companies

158,265（Margin accounts）
175,000

Margin account comparison with
Matsui Securities（March 2004 to September 2007）（September 30, 2007）
150,000

140,000

120,000
125,000

96,824

100,000

82,681

100,000

80,000Margin accounts were
10.6% of all customer
accounts at the end of
Sept. ’07 and 10.5%
at the end of
March ’07 (13.8% at
Matsui Securities at
end of Sept. ’07).

SBI E*TRADE
158,265

Matsui
96,82456,20060,00075,00036,16440,00050,00020,0000
SBI
E*TRADE

MatsuiRakutenKabu.com

Monex

25,000Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
2004
2005
2006
2007

Source: Compiled by SBI E*TRADE SECURITIES based on Web sites
and other public information for each company<20>

（2）Financial revenues

Margin trading balance
Margin trading balance (long and short) (at end of month)（million yen）
600,000

567,988

530,493
519,033
519,112
83,237492,093
64,004
485,290
93,512
468,715
69,92564,315437,876
64,271

Ordinary (no maturity) margin

500,000

570,686

System margin (long/short)

65,407

387,891

400,000

53,606

321,529 67,089
307,869
65,190300,000
55,881

487,449

213,856
210,686
203,499
200,000

23,751

29,762

466,178
449,108
455,107474,475

35,946

320,801
184,093
112,925

403,308

256,339

179,747
100,000

384,269

427,821

164,545

251,987
174,739

108,488
0
Sep

Dec

2003

Mar

Jun

2004

Sep

Dec

Mar

Jun

Sep

2005

Notes: 1. Based on settlement date. SBI E*TRADE SECURITIES figures are non-consolidated.

Dec

Mar

Jun

2006

Sep

Dec

Mar

2007

Jun

Sep

Oct

26

2. Trade date basis for October 26. Includes transactions at former SBI Securities.

<21>

（2）Financial revenues

Growth in self-financing for margin trades
Self-financing ratio increasing due to diversification of fundprocurement channels

(％)

45

Non-consolidated self-financing ratio
40.2

40
40.0
34.7

35

33.4
30.5
32.6

30
25
1Q

2Q

3Q

4Q

Fiscal 2007

1Q

2Q

Fiscal 2008

＜More productive use of assets＞
l

Making efficient use of internal funds by funding loans for margin tradeslFocusing on fund procurement on the call marketlStrong performance by stock lending operations using stock certificates submitted
as collateral for self-financing

More rigorous cash management produced a big improvement in net financial revenues<22>

（2）Financial revenues

Growth in revenues from stock lending
Steady growth in revenues continued even though the balance declined due to market conditions.
SBI E*TRADE heightened its stature in the stock lending market.
（million yen）
Balance of shares lent at end of each month
80,00074,23370,000（million yen）

Revenues from stock lending

350

321
300

57,51654,55454,74660,00053,79651,35150,000

306

280

275
249

250
48,456

256

209
200

40,000136

150
30,00022,605100

20,00010,000

4,282
2,169

50

25
8

0

0
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
2005
2006
2007
*Based on market value at the end of each month.

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Fiscal 2006

Fiscal 2007

Fiscal 2008<23>

First half highlights(3) Consolidated underwriting, offering and selling commissions（million yen）

1,460

1,400
1,200

Up 76.2%
1,000

828

800
600
400
200
0
First half of fiscal 2007
（April〜Sept. ‘06）

First half of fiscal 2008
（April〜Sept. ‘07）<24>

(3) Underwriting, offering and selling commissions

Measures to increase investment trust revenues and results（million yen）

2,000

Revenues from investment trusts

1,888

1,500

Up 228.1%
1,000

575
500

0
First half of fiscal 2007
（April〜Sept. ‘06）
Notes:First half of fiscal 2008
（April〜Sept. ‘07）

1. Sum of selling commissions and trust tees (trust fees include MRF)
2. Trust fees are included in “other commissions received.”<25>

(3) Underwriting, offering and selling commissions

Investment trust sales and major initiatives
SBI India & Vietnam Stock Fund
(Sales from June 29 to July 18, 2007)

Investment trust sales（¥100 million）

Invests in stocks of companies
in India and Vietnam

700

608
600

Fund sales by SBI E*TRADE
Achieved record sales of500(reference) Investments of top 20 best-selling investment
trusts by amount(April to Sept. 2007 sales)

400

300
200

¥15 billion

434 419

Japan

230

189
101

Other
overseas

100

3

7

10

Emerging
economies

0
1Q
Fiscal 2007

2Q

3Q

4Q

1Q
2Q
Fiscal 2008

*Includes MMF and medium-term gov’t bond fund.

Of the top 20, 17 (85% of total) make investments outside Japan.
Of these 17, 10 (50% of total) target emerging economies.

<26>

(3) Underwriting, offering and selling commissions

Sales of no-load investment trusts
Significantly increased number of no-load funds during the first half
Sales up about 4.9 times year on year
（Funds）

80

Growth in
number of funds

70

Growth in sales of
no-load funds(¥100 million)

67

68

70

299

300
267

60

250

50

45
41

41

227

200

44

40

150
114

30
20
10

100
18

75
40

50
0

Mar

2006

Jun

Sep

Dec

Mar

2007

Jun

Sep

Oct 30

1Q

2Q

Fiscal 1007

3Q

4Q

1Q

2Q

Fiscal 2008<27>

(3) Underwriting, offering and selling commissions

Growth in investment trust assets and trust fees
Steady growth in trust fees due to further increase in fund assets（¥100 million）

2,200
2,000

Investment trusts
Growth inquarterly assets

420

411
372

390
360

1,800

1,625
1,402
1,277
1,200
1,177
1,091
982

1,600
1,400
1,200
1,000

330

293

300
270
240

190

210

214

180

717

800
600

2,105

Investment trusts
Growth in trust fees

（million yen）
450

150

579

120
90

400

60

200

30

0

0

28

46

69

92

105

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

１Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Fiscal 2006

Fiscal 2006

Fiscal 2007

*Includes MMF and medium-term gov’t bond fund.

Fiscal 2008

Fiscal 2007

Fiscal 2008

*Includes MMF, MRF and medium-term gov’t bond fund.

*Trust fees are included in “other commissions received.”<28>

(3) Underwriting, offering and selling commissions

IPO Underwriting ①
SBI E*TRADE SECURITIESBig four online securities companies
FY08 first half IPO issues underwritten/amount（Companies） IPO issues underwritten（Companies）

121

120

（million yen）

4,014

35

4,000

31
100

87

30

94

Offerings underwritten

Amount

3,000

25

80

20

20
60

38

40

42

38

First
halfSecond
half

23

2,500

1,500

10

55

20

8

6

31

8

2,000

1,755

15

3,500

1,000

613

5

500

65
0
FY00 FY01 FY02 FY03

FY04

FY05 FY06 FY07 FY0800
SBI E*TRADE

Monex

Matsui*Includes over-allotments. Excludes brokerage sales. Based on listing date. Excludes brokerage sales and real estate investment trusts.

Rakuten<29>

(3) Underwriting, offering and selling commissions

IPO Underwriting ②（Companies）

Big four online securities
companies

482

Cumulative IPOs underwritten

500
450
400

368

IPO underwriting ranking（Apr. ‘07〜Sept. ’07）

First among all securities companies
Ran
king

Company

Issuesunder
writtenParticipat
ion ratio(%)

1

SBI E*TRADE

31

62.0

2

Nomura Securities

29

58.0

2

Shinko Securities

29

58.0

4

Daiwa SMBC

28

56.0

5

Mitsubishi UFJ Sec.

25

50.0

6

Okasan Securities

20

40.0

6

Monex Securities

20

40.0

350
300

230

250

210

200
150
100
50
0
SBI E*TRADE

Monex

MatsuiRakutenSource: Compiled by SBI E*TRADE SECURITIES based on public information. Covers
period from start of each company’s online securities business to Sept. 2007 (based onlisting date). Excludes brokerage sales and real estate investment trusts.

*Compiled by SBI E*TRADE SECURITIES based on public information and otheravailable information. Covers underwriting in Japan (excluding over-allotment) for 50
IPOs from April through Sept. 2007 (based on listing date).

<30>

First half highlights(4) Consolidated trading gain and other revenues（million yen）

Other commissions + Trading gain + Other revenues + 401k sales

4,110

4,000

3,100
3,000

Up 32.6%

2,000

1,000

0

First half of FY07
（April ‘06〜Sept ‘06）

First half of FY08
（April ‘07〜Sept ‘07）<31>

(4) Trading gain and other revenues

Bond sales（million yen）
35,000Government, corporate andforeign bond sales
Foreign bonds

34,735

Yen bonds

28,60930,000◆Sales of retail Japanese government bonds
remain strong

Foreign bonds◆Sales consistently strong, mainly for bonds
with high ratings and monthly payments(South African rand bonds, exchangeable bonds)

28,662

Japanese
equities

25,00014,14520,00018,146

13,689Market downturn
Yen appreciation

14,972

Individual
investors

15,412

Portfolio
diversification

15,06627,312

Yen bonds

ForeignbondsHigh interest rate, high credit
rating, monthly interest
payments

15,00010,00019,668
14,463

5,000

5,877

11,900Growth intransactions

12,269Individual
investors

Offering many types of investments provides individual
investors with a greater range of investment options in0order to diversify risk. For example, there are sharp
1H
2H
1H
2H
1H
increases of foreign bond sales whenever there is a
Fiscal 2006
Fiscal 2007
Fiscal 2008
*Includes underwriting and selling commissions for retail JGB. Above figures include brokerage sales. market downturn or the yen appreciates.
<32>

(4) Trading gain and other revenues

Growth in foreign exchange margin transactions
No-commission campaign in June. Reduced official commissions after the campaign.
Foreign exchange margin accounts

Revenues from foreign exchange
margin transactions（million yen）
700

（Accounts）
80,000634

74,94270,000600

60,000

500

454
413

50,000400

335

40,000

449

432
356

375

374

300

30,000200

192

20,000100

10,000

0

0
4

7

2004

10

1

4

2005

7

10

1

4

2006

7

10

1

4

2007

7 9

１Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Fiscal 2006

Fiscal 2007

Fiscal 2008<33>

First half highlights(5) Consolidated selling, general and administrative expenses

16,591（million yen）

15,00014,579Trading expenses
Exchange membership expenses,
advertising expenses, others

5,187

Personnel expenses

4,406
10,0001,731

0IT system leases, others

1,505
2,542

5,000

Occupancy expenses

766

828

3,521

3,326

275
1,561

416
1,956

First half of FY07
（April ‘06〜Sept ‘06）

Goodwill amortization

3,025
118

Depreciation
Software depreciation, others

Administrative expenses
IT system back office use, others

Taxes
OthersProvision for allowance for
doubtful accounts

First half of FY08
Information provision fees, others（April ‘07〜Sept ‘07）<34>

First half highlights(6)-① E*TRADE Korea FY08 first half performance＜converted to yen＞

（million yen、%）First half of FY07
First half of FY08
YoY change（April ‘06〜Sept ‘06）（April ‘07〜Sept ‘07）

Operatingrevenues
Net operating
revenues
Operatingincome

2,830

4,769

+68.5

2,666

4,321

+62.1

699

1,631

+133.3

Ordinary income

706

1,640

+132.2

Net income

521

1,086

+108.4(Won is converted to yen using average monthly exchange rates.)<35>

First half highlights(6)-① E*TRADE Korea FY08 first half performance＜Korean won＞

（million won、％）First half of FY07
First half of FY08
YoY change（April ‘06〜Sept ‘06）（April ‘07〜Sept ‘07）

Operatingrevenues
Net operating
revenues
Operatingincome23,18636,884+59.1

21,84133,420

+53.0

5,730

12,582+119.6

Ordinary income

5,787

12,656+118.7

Net income

4,273

8,377

+96.0
<36>

(6) Consolidated subsidiary

E*TRADE Korea Co., Ltd.
Higher revenues and record earnings due to growth in number of accounts and favorable market conditions

Accounts and brokerage trading value（Accounts）
180,000

160,000（billion won）

120,000

45,000Accounts (end of period)

164,698

Brokerage trading value

40,000135,139

140,000

38,74735,000113,227

30,00026,342100,000

Profile (September 30, 2007)

25,00022,67180,00020,00060,00015,000Capital:66,390 million won

Equity ratio:

73.4％

Onlineaccounts:

164,698（5th largest in Korea）

Brokerage
trading value:

38,747.1 billion won（Apr. ‘07〜
Sept. ‘07）（11th largest in Korea）

Major FY08 initiatives
Trading tool that permits real-time trading ofJapanese stocks

Major upcoming initiatives
40,00010,00020,0005,000
1H

Fiscal 2007

2H

1H

Fiscal 2008

• Provision of global trading service. Plan to offer
trading of U.S., Chinese and Hong Kong stocks• Portal site alliances to increase number ofcustomer accounts

Value of SBI E*TRADE equity interest is about ¥11 billion (September 30, 2007)※Converted using exchange rate as of September 30, 2007<37>

First half highlights（6）-② IT system subsidiaries
Made two IT system companies subsidiaries on July 9, 2007
Started contributing to consolidated performance in FY08 2nd quarter
Traders Financial Systems Co., Ltd.

TradeWin Co., Ltd.

FY08 2nd quarter（July〜Sept. ‘07）

FY08 2nd quarter（July〜Sept. ‘07）

Operating revenues

Net operating
revenues

449
208

Net operating
revenues

282
54

Operating income

149

Operating income-52

Ordinary income

160

Ordinary income-54

Net income-22

Operating revenues

Net income

86（million yen）

（million yen）

<38>

2. Major first half initiatives

2. Major first half initiatives

Major first half initiatives
Month• Indicates service release, *Indicates alliance, decision, etc.

Description of action• Started HYPER E*TRADE reverse limit order service

April• Started instant settlement service through alliance with Seven Bank
• Started promoting the SBI Holdings SNS E*TRA Long-life Village (now SBI Money World) to customers with securities
accounts• Introduced S! appli compatible HYPER MOBLIE service for cell phone users

May• ”Biggest Campaign of All Time” ? Cut to industry’ s lowest level the fee structure for eight products• Started MOBILE E*TRADE for W-ZERO3 service for the WILLCOM W-ZERO3 series• Started Investment Trust Double Smile Campaign• Cut official commissions for E*TRADE FX foreign exchange margin trading• Lowered interest rates on long margin positions with no maturity (ordinary margin trades)

June• Conducted Biggest Campaign of All Time ? Customer Appreciation• Started promoting 401k accounts for individuals at the Everyone’s Money Site of Seven Bank
• Started handling overseas exchange-traded funds

July• Through alliance with Winterthur Swiss Life Insurance, started handling investment-type annuity insurance throughInternet applications*Made TradeWin and Traders Financial Systems wholly owned subsidiaries through exchange of stock• Significantly eased requirements for free use of HYPER E＊TRADE Ver2.0

Aug.

• Began accepting requests to use E*TRADE points as contributions to victims of the earthquake in Niigata, Japan• Started nighttime trading service (started link with Japannext PTS)
• Started a campaign that cut mini-Nikkei 225 futures commissions to the industry’ s lowest level

Sep.

• Started bank agent service for Sumishin SBI Net Bank

Oct.

*Merged with SBI Securities• Started offering FLASH version of form to open an account<40>

2. Major first half initiatives
Biggest Campaign of All Time - Cut commissions for products to the industry’s lowest level

Big cuts in investment expenses produced growth in trading volume
Foreign exchange margin transactions

Futures and options transactions（
Index） YoY change Index for no. of trades （Index）YoY change Index for trading volume

250

200

236

160

159
Up 58.7％

Up 135.6％
130

150

100

100

100
FY08 1st quarter（April〜June ‘07）

100
FY08 2nd quarter（July〜Sept. ‘07）

FY08 1st quarter（April〜June ‘07）

FY08 2nd quarter（July〜Sept. ‘07）

＜Results of other initiatives＞ Odd-lot (S shares) trades: No. of trades up 115.7%
Chinese stock trading: No. of trades up 44.1%
Covered warrants: No. of trades up 60.2%
Succeeded in raising trading volume for almost all products by lowering investment costs for
products other than Japanese equities in order to allow individuals to diversify their portfolios<41>

2. Major first half initiatives

Pursued group synergies through collaboration with Sumishin SBI Net Bank
Started offering bank agency services on Sept. 24 for Sumishin SBI Net Bank
● Bank agency services
Service

Description

Open ordinary savings
account

Simple account opening procedure using Internet that requires nowritten documents of confirmation of ID● Services offered with banks
Service

Description

Deposit exclusively for
E*TRADEBank account funds automatically used to pay for stock and otherpurchases

Automatic payment service
for margin calls, etc.

When an additional deposit is required for a margin position, therequired amount is automatically transferred from the bank account tothe securities account.

Aggregation service

Allows using the bank Web site to check the securities account balance

Closely links the asset management function of a securities account with the settlement
function of a bank accountThis alliance to offer even more convenient services demonstrates our commitment to putting
the customer first.
<42>

2. Major first half initiatives

Investment banking
Made many contributions to the growth of companies by offering IPO underwriting
and other investment banking services
Lead underwriter issues (Fifth issue)Company: Naturum Corporation
Listed: October 19
Market: Osaka Hercules

Served as agent for takeover bid for the first time

Company: Living Corporation
Activities

Activities

Designer condominiums that are sold as entire
buildings
Planning, development and sales

Internet sales of outdoor and fishingproducts

Tender offer:
August 1〜September 3, 2007

Lead manager consulting contracts with 31 companies(September 30, 2007)
Participated in underwriting syndicates of 31 of the 50 newly
listed companies in Japan during the first half (April〜
Sept.)
Highest participation rate among online and all otherJapanese securities companies
Aim to maximize profit opportunities by using IPO as a means of meeting PO, M&A and other subsequent needs of these companies<43>2. Major first half initiatives

Response to Financial Products Exchange Law
Complying with provisions of Financial Products Exchange Law, which is aimed at protecting investors and improving market functions

Compliance with tighter advertising restrictions● Inclusion of information required by Financial Products Exchange Law● Inclusion of information on risks associated with products＜Media used＞

u Web site (including back-up site)u Trading tools（HYPER E*TRADE、MOBILEE*TRADE, others）
u Mobile Web siteu Information sent e-mail (e-magazine)

Inclusion of product risk information foreach product in all transaction channels
and advertising media
Other measures＜Contents＞◆Name, etc. ◆Registration no. ◆Association
memberships ◆Risks associated withproducts ◆Commissions
Footers on each Web site page provide links to
pages with applicable information● Rigorous application of the suitability rule

● Different products and services for specific types of investors（Pro/amateur system）● Provision of written contracts and explanations prior to signing contracts Accept applications only after confirming that the customer fully
understands all aspects of the applicable service. Reconfirm provisions of products and services with existing customers

・Rigorously protect investors by providing them with a full understanding of financial products
・Establish systems to further upgrade compliance with laws and regulations<44>

3. New Initiatives

3. New Initiatives(1) Aim to become an Internet full-line securities company• Establish a consistently profitable operating structure• Strength in both elements of Internet full-line securities services:
Retail and wholesale(2) New initiatives• Merger with SBI Securities created Japan’s first “real based on Internet”
securities company• Measures to increase trading volume on nighttime market• Install IVR (interactive voice response) system• Service for purchase of foreign currency-denominated foreign
government bonds• Plan to extend HYPER E*TRADE Ver 2.0 to include futures and options
and E*TRADE FX<46>

(1) Aim to become an Internet full-line securities company

Establish a consistently profitable operating framework
Build a profit structure that is not vulnerable to market fluctuations
Composition of consolidated operating revenues in FY08 first halfCommissions（％）
SBI E*TRADE

Underwriting/selling commissions
Offering/selling commissions
Financial revenues

47.5

35.5

Trading gains/losses
Others

4.5 4.7 7.9

Matsui

53.6

Monex

53.3

28.1

4.6 0.3 13.8

Rakuten

50.3

36.3

1.4
1.8 10.2

54.5

Kabu.com（Non-consolidated）
Nomura Securities

40.6

15.4

20.6

21.2

5.8

35.2

1.5 8.8

25.1

17.7

Source: Company Web sites and earnings releases (Nomura Securities figures based on Japanese standards)<47>

(1) Aim to become an Internet full-line securities company
The two elements of comprehensive services: Retail business and wholesale business
Leverage the retail business operating base to expand the wholesale business with aimof establishing a consistently profitable operating structure

Overwhelming lead in online customers served
27 offices nationwide, sales force of about 270 (Sep. 30, 2007)
Growing share of retail brokerage trading value
RetailStocksStocksInvestme
Investme
nt
nttrusts
trusts
Bonds
Bonds

Foreign
Foreignexchange,exchange,
futures/opti
futures/opti
ons
ons
CoveredCoveredwarrants
warrants

Wholesale
Offering
Offering
IPO
IPOstockstock
OffOffmarket
marketsales
sales

Provision
Provision
of
ofIR
IRand
and
investor
investor
informatio
informatio
nn

IPO
IPO
underwriti
underwritingng

Secondar
Secondaryyfinance
finance

Aim to increase market
Expand wholesaleshare and serve even more business by using retailcustomers by launchingsales capabilities and SBI
new services andGroup resourcescompetitive fee structures

Securitize
Securitize
ddproducts
products

PrivatePrivatebankingbanking

M&A
M&A

OffOffmarket
market
sales
sales
（
main
（
main
intermediintermedi
ary）
ary）

Investor
Investor
relationsrelations
supportsupport<48>

(2) New initiatives

Use SBI Securities merger to expand face-to-face sales
Actions using conventional channels to become a comprehensive securities company
Diversify businesses using face-to-face channels to expand underwriting and private banking operations

Sales of stocks and investment
trusts to individuals
・Sells stocks, investment trusts andother investments using face-to-facechannelPrivate banking business・Established training system for
employees in private banking toserve high-net-worth individuals

Sales force ofabout 270
Provision of added value
to online customers
・Introduce sales personnel using Web site
・Establish a call center that provides
consultation services

Sales targeting operating andfinancial companies

・Use nationwide offices to strengthen
corporate sales
・
Increase number of financial
companies

Conduct unprecedented and highly efficient sales activities by using the convergence of Internet and<49>“real” infrastructure and capturing mutual synergies

(2) New initiatives

Measures to increase trading on nighttime market
By generating sufficient volume, the PTS business of SBI E*TRADE is already profitable.
＜Services to be introduced＞

Start of ordinary
margin transactions
Increase trading value andliquidity by offering investors
greater convenience

Start ofcompatibility with
HYPER E*TRADE

Extended trading
hours(*1)

More investment opportunities byMore convenience for investors extending the overlap of trading
hours with U.S. markets
when making trades

Aiming for faster growth in customer trading volume and value by SBI E*TRADE
customers(reference) September trading value of Japannext and competing PTS(*2)

91

100

(100 million yen)
80
60

20

◆About 2.5 times higher than Monex Nighter（started Jan. 2001 ）36

40◆About 5 times higher than kabu.com PTS(started Sept. 2006)

18(*1)Extended trading hours to 19:00〜23:59 on Oct. 26, 2007

0Kabu.comMonex

SBI Japannext(*2)Excerpt from Oct. 8, 2007 Chunichi Shimbun<50>

(2) New initiatives

Use of Interactive Voice Response (IVR) Technology
Will start by using IVR to provide stock prices and accept orders in order to offer
greater convenience.

Plan to start IVR service in December 2007
＜Major functions＞■Standard and margin orders for Japanese stocks■Prices of Japanese stocks■Voice recognition function for names of stocks■Check balances ■Withdrawals■Stop ATMs
■Check orders

Use the telephone for;Check stock prices
Place orders*Orders can also be placed for PTS nighttime trades and oddlot (S stock) trades.

l In principle, orders can be placed by telephone
any time of the day (24 hours)l Can be used as a back-up system for conducting trades during emergencies.
l A supplementary service for individuals who have difficulty performing trades using the
Web site and viewing the mobile Web site.

Aim to deepen ties with individual investors by adding more trading channels<51>
and offering greater convenience.

(2) New initiatives

Service for buying foreign currency-denominated foreign government bonds
Considering spring 2008 start of service for purchase of foreign currency-denominated foreign government bonds＜Advantages of foreign-currency foreign bonds＞
1. No two-way exchange fees needed forconversion because settlement is in theforeign currency
2. Offers ability to hedge foreign exchange risk
based on the investor’s own decisions.
3. Ability to tie up a smaller amount of funds
because there is no exposure to foreignexchange rate fluctuations when placing anorder.
4. In principle, orders can be placed any time ofthe day.

Currency
F
Currency
A

Currency
E

Currency
B

Currency
C

Currency
D“View all currency gains and losses at once”
u Possible to determine stock and bond gains and losses
for each currency
u Ability to view gains and losses for each currency on asingle screen offers customers greater convenience

Plan to increase number of currencies offered to meet the needs of individual investors.
<52>

(2) New initiatives
HYPER E*TRADE Ver 2.0 Plan to add compatibility with futures/options and E*TRADE FX
Use a real-time trading tool for futures/options and foreign exchange margin transactions＜ Major steps to offer more convenient services ＞
November 2006
Released HYPER E*TRADE Ver 2.0
Offered more information and improved ease of use

April 2007
Added reverse limit order function
Reduced lost profit opportunities for customers
caused by inability to place, correct and cancel
orders on a real-time basis.
Continuously eased requirements for utilization at no charge
to make this service available to even more individuals.**Screen shows the current HYPER E*TRADE*As of October 2007, at least three trades per month, etc.

Futures/options, foreign exchange margin trading

Big increase in trading volume, mainly by individuals
Investors’ needs are diversifying beyond stocks. Combining the orders for many
investments in a single tool thus provides much more convenience.

<53>http://www.etrade.ne.jp

Risks and commissions associated with products handled by SBI E*TRADE
Name: SBI E*TRADE SECURITIES, Financial Products Trader
Registration number:
Memberships:

Kanto Regional Finance Bureau (Kinsho) No. 44

Japan Securities Dealers Association, The Financial Futures
Association of Japan

Risk information concerning products
uJapanese stocks Ordinary trading• Stock transactions may result in losses due to changes in stock prices and other factors.

uJapanese stocks Margin trading• Margin trades require a deposit of at least 33% of the transaction value, but not less than ¥300,000.
• Since margin trading permits using small deposits to conduct large transactions, there is a risk of incurring a substantial loss.
• Margin trading may produce losses due to changes in applicable stock prices and other factors. In addition, losses may exceed
the margin deposit.

uOdd-lot shares• Stock transactions may result in losses due to changes in stock prices and other factors.
<55>

Risks and commissions associated with products handled by SBI E*TRADE
Risk information concerning products
uOff-market sales• Stock transactions may result in losses due to changes in stock prices and other factors.

uIPO/Public offerings・Secondary offerings• Stock transactions may result in losses due to changes in stock prices and other factors.

uInvestment trusts• Investment trusts purchase mainly stocks, corporate and government bonds and other securities with price volatility. Since
the principal is not guaranteed, the price of each investment unit will fluctuate along with changes in market prices, exchange
rates and other items on markets associated with trust assets. Consequently, the value of an investment trust investment
may fall below a customer’s initial investment.
• Investment trusts differ depending on the type of assets held, investment limits, markets and countries used for investments,and other factors. Since each trust has a different risk profile , investors are urged to read the prospectus and contract before
signing.

uBonds• Bond prices move together with changes in market interest rates. Consequently, investors may incur losses when sellinga bond prior to its maturity.
• Foreign government bonds may produce losses due to changes in foreign exchange rates and other items.
<56>

Risks and commissions associated with products handled by SBI E*TRADE
Risk information concerning products
uFutures・Options• The required deposit is (SBI E*TRADE SPAN deposit ? Net option value) x 1.4 (140%).
• The SBI E*TRADE SPAN deposit and total net option value is recalculated each time an order is placed or completed.
Furthermore, the deposit may change due to exchange regulations or a decision by SBI E*TRADE at its discretion.
• Please confirm the current SPAN deposit by visiting the Osaka Securities Exchange Web site.
• Prices of stock index futures (Nikkei 225 and mini Nikkei 225) fluctuate along with changes in stock indexes and other items. This
volatility may result in losses for investors. If market prices move in the opposite direction than was expected, investors may losea large part or all of the deposit in a short time. Furthermore, this loss may exceed the deposit. Moreover, since stock price index
futures trading permits using small deposits to conduct large transactions, there is a risk of incurring a substantial loss.
• Prices of stock index options (Nikkei 225 options) fluctuate alo ng with changes in stock indexes and other items. This volatility
may result in losses for investors. Caution is needed because options can be exercised only during a certain period. Investors
who buy options will lose their entire investments if the option is not exercised or resold before the expiration date. Investors who
sell options may be exposed to an unlimited loss if market prices move in the opposite direction than expected. Furthermore,since stock index option market prices are linked to movements i n the actual stock index, volatility of option prices may be higher
than the rate of change in the actual stock index. In some cases, there is a risk of incurring a substantial loss.

<57>

Risks and commissions associated with products handled by SBI E*TRADE
Risk information concerning products
uForeign stocks• Foreign stock transactions may result in losses due to changes in stock prices and other factors.
• Foreign stock transactions may result in losses due to changes in foreign exchange rates and other items.

･
uForeign exchange margin transactions (E*TRADE FX)• Foreign exchange margin transactions are conducted in units of ¥10,000 to ¥10 million and require a minimum deposit offrom ¥50,000 to ¥200,000.
• Principal and interest for these transactions is not guaranteed.
• These transactions are conducted using a small deposit in relation to the amount of the trade. Consequently, while investors
may earn large profits in relation to the deposit, there is also a risk of incurring a large loss within a short time.
• These transactions may result in losses due to changes in currency prices, financial indicators and other items. Furthermore,
losses may exceed the deposit.
• The swap point varies depending on changes in interest rates and other items. Consequently, there is no guarantee that theswap point will remain the same.
• Transaction rates use the 2-way method, resulting in a difference between the purchase and sale value.

uIndividual annuities• Investments used by individual annuity plans include investment trusts. Since the value of investment trust investmentschanges depending on changes in prices of trust stocks and bonds, exchange rates and other items, the value of aninvestment may fall below the principal.

<58>

Risks and commissions associated with products handled by SBI E*TRADE
Risk information concerning products
uInsurance• Insurance policy assets are managed in a separate account while premiums are received and while annuity payments are
made. Death benefits, annuity payments and refunds upon policy termination may increase or decrease depending on theperformance of assets in the special account. Assets in the special account are vulnerable to investment risks associated withchanges in prices of stocks and corporate and government bonds, exchange rates, and other items. Depending on theperformance of assets, the sum of annuity payments and the refund upon termination may fall below the one-time insurance
premium payment. The policyholder is responsible for all of the risk.

ue-warrants• Prices of e-warrants (covered warrants) are vulnerable to many factors that include but are not restricted to changes in pricesof underlying stocks and stock indexes, REITs, depositary receipts, JGB futures, currencies (link bonds), commodities (linkbonds), to the passage of time (in general, the price declines with time, except for certain types of issues), and to foreignexchange rates (for underlying assets are outside Japan). Consequently, principal is not guaranteed and there is a high risk oflosing the entire original investment. Furthermore, e-warrants generally have greater price volatility than a direct investment in
the underlying assets. (However, when the price of an e-warrant is extremely low, price movements are virtually unaffected bychanges in prices of underlying assets.)• Prices of near-pin e -warrants (covered warrants) are vulnerable to many factors that include but are not restricted to changes instock indexes and foreign exchange rates, which are the underlying assets, and the passage of time (including during a singleday). Consequently, principal is not guaranteed and there is a high risk of losing the entire original investment. Furthermore,
nearpin e-warrants generally have greater price volatility than a direct investment in the underlying assets. The maximum
amount that can be received per warrant is ¥100. If the price of the applicable assets upon maturity differs from the pin price bymore than the prescribed amount, the price will be zero upon maturity. Even if an investor purchases all types of nearpin ewarrants that have the same maturity date, there is a possibility of losing the entire investment.
• Furthermore, a transaction may be terminated even during exchange trading hours.
• There is a difference (spread) between customers’ purchase and sales prices.
<59>

Risks and commissions associated with products handled by SBI E*TRADE
Fees and commissions (*Includes Internet・mobile device transaction fees and taxes)◆Japanese stocks, ETF, REIT, Securities investment companies• For ordinary trades, the commission per order is ¥200 for trades up to ¥100,000, ¥250 up to ¥200,000, ¥450 up to ¥500,000,¥800 up to ¥1 million, ¥950 up to ¥1.5 million, ¥1500 up to ¥30 million and ¥1575 for more than ¥30 million. The commission for
trades in a single day is nothing for up to ¥100,000, ¥250 up to ¥200,000, ¥315 up to ¥300,000, ¥500 up to ¥500,000, ¥900 up
to ¥1 million, and an additional ¥420 for each additional ¥1 million. For system/ordinary margin trades, the commission per orderis ¥150 for trades up to ¥100,000, ¥250 up to ¥200,000, ¥200 up to ¥500,000, and ¥400 for more than ¥500,000. The
commission for trades in a single day is nothing for up to ¥100,000, ¥300 up to ¥500,000, ¥600 up to ¥1 million, ¥1000 up to ¥10
million, ¥2000 up to ¥50 million, and an additional ¥2000 for each additional ¥50 million.
*The total transaction value and commission are calculated separately for ordinary Japanese stock transactions, Japanese stock
system margin transactions, and Japanese stock ordinary margin transactions.
• For PTS nighttime trades, the commission per order is ¥450 for trades up to ¥500,000, ¥800 up to ¥1 million, ¥950 up to ¥1.5
million, ¥1500 up to ¥30 million, and ¥1575 for more than ¥30 million (but commission is ¥367 for all trades executed on
February 29, 2008). PTS nighttime trades are not possible with HYPER MOBILE and HYPER MOBILE Lite.
• The commission for odd-lot shares (S stock) transactions is 0.63% of the transaction value. There is no minimum commission.
• There is no commission for IPOs, public offerings and secondary offerings. With MOBILE E*TRADE, purchases are possible
only after submitting a bookbuilding application and confirming the result of the drawing. This is not possible with MOBILEE*TRADE for W-ZERO3, HYPER MOBILE and HYPER MOBILE Lite .

<60>

Risks and commissions associated with products handled by SBI E*TRADE
Fees and commissions (*Includes Internet・mobile device transaction fees and taxes)
uJapanese stocks, ETF, REIT, Securities investment companies (continued)• There is no commission for off-market sales. Off-market sales are not possible with MOBILE E*TRADE for W-ZERO3,
HYPER MOBILE and HYPER MOBILE Lite.

uForeign stocks• For U.S. stocks, the commission per order is US$26.25 up to 1,000 shares and an additional 2.1 cents for each additional
share.
• For Chinese stocks, the commission is 0.4095% of the transaction value. The minimum commission is HK$31.50 and the
maximum commission is HK$315.
• For Korean stocks, the commission is 0.945% of the transaction value. The minimum commission is 9,450 won.
*There is a management fee of up to 0.99% on overseas ETF.

uInvestment trusts• For stock and other investment trusts, the application fee is a maximum of 3.15% of the unit price, the trust fee is a
maximum of 2.31% of the net assets, and the trust asset retention amount is a maximum of 1% (not taxed) of the unit
price upon redemption. Please check for other fees in the prospectus of each fund. Investment trust fees are different foreach fund.
• When investing in a foreign currency-denominated MMF (U.S. dollars), investors pay only the amount of the investment.
There is also a one-way foreign exchange fee of ¥0.25 for the foreign exchange transaction associated with thepurchase of the foreign currency-denominated MMF.
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Risks and commissions associated with products handled by SBI E*TRADE
Fees and commissions (*Includes Internet・mobile device transaction fees and taxes)
uBonds• Japanese bonds (except convertible bonds): Investors pay only the value of the bonds when buying Japanese bonds.
• Foreign bonds: Investors pay only the value of the bonds when buying foreign bonds. Please note that there is also an SBIE*TRADE foreign exchange fee associated with the purchase of the foreign bond (payable for each purchase). This fee is±¥0.50 for the U.S. dollar, ±¥0.80 for the euro, ±¥0.80 for the Canadian dollar, ±¥1 for the Australian and New Zealanddollars, ±¥0.50 for the South African rand, and ±¥0.30 for the Mexican peso. ※Please note that these foreign exchange fees
may be revised at any time without prior notice.

uFinancial products• For foreign exchange margin transactions, the commission is ¥300 for each trading unit and ¥4500 for 15 or more trading units.
When there are two or more positions, this commission is applied to each one. Foreign exchange margin transactions are notpossible with MOBILE E*TRADE for W-ZERO3, HYPER MOBILE and HYPER MOBILE Lite.
• For futures transactions, the commission is ¥525 per Nikkei 225 contract and ¥105 per mini Nikkei 225 contract. Futures trading
is not possible with MOBILE E*TRADE for W-ZERO3, HYPER MOBILE and HYPER MOBILE Lite.
• For options transactions, the commission is 0.21%. Options transactions are not possible with MOBILE E*TRADE for W-ZERO3,
HYPER MOBILE and HYPER MOBILE Lite.
• e-warrant commissions are ¥262 for trades up to ¥200,000 and ¥525 for trades of ¥200,000 or more.
• There is no commission for individual annuity transactions.
• For insurance policies, there is no commission for investment-type annuity policies, healthcare insurance, cancer insurance,
automobile insurance, overseas travel insurance and golf insurance. However, for investment-type annuity policies, there is afee of 5.0% of the lump-sum premium payment to cover initial policy expenses, a monthly fee of ¥500 for policy management
expenses and other insurance administrative expenses. Please visit the SBI E*TRADE Web site to obtain more information. <62>

Risks and commissions associated with products handled by SBI E*TRADE
Fees and commissions (*Transaction fees including taxes at conventional offices)uJapanese stocks, ETF, REIT, Securities investment companies• For ordinary trades, the commission per order is 1.2075% of the transaction value for trades up to ¥1 million, 0.945% +¥2,625 for trades of ¥1 million+ to ¥5 million, 0.735% + ¥13,125 for trades of ¥5 million+ to ¥10 million, 0.60375% +¥26,250 for trades of ¥10 million+ to ¥30 million, 0.39375% + ¥89,250 for trades of ¥30 million+ to ¥50 million, the higherof ¥286,125 or 0.189% + ¥134,400 for trades of ¥50 million+ to ¥100 million, 0.168% + ¥155,400 for trades of ¥100
million+ to ¥300 million, 0.105% + ¥344,400 for trades of ¥300 million+ to ¥500 million, 0.084% + ¥449,400 for trades of¥500 million+ to ¥1 billion, and 0.063% +¥659,400 for trades of more than ¥1 billion.
*However, the commission is ¥2,650 if the above commission of 1.2075% of the transaction value is less than ¥2,650.
*More information concerning commissions is available at any SBI E*TRADE office.

uIPO, public offering, secondary offering and off-market sale commissions• Investors pay only the cost of the investment for stock offerings, secondary offerings and off-market sales.

uBond commissions• Investors pay only the value of the investment when buying bonds directly from SBI E*TRADE at an SBI E*TRADE
office. Please note that there is also a foreign exchange fee associated with the purchase of foreign bonds. The
maximum fee is ¥0.50 for the U.S. dollar, ¥1 for the British pound, ¥0.80 for the euro, ¥0.80 for the Canadian dollar, ¥1
for the Australian and New Zealand dollars, ¥0.50 for the South African rand, ¥0.30 for the Mexican peso, ¥2.70 for the
Turkish lira, and ¥0.20 for the Hungarian forint.

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Risks and commissions associated with products handled by SBI E*TRADE
Commissions (*Transaction fees including taxes at conventional offices)uCommissions for convertible bonds and securities with warrants• For convertible bonds and securities with warrants,, the commission per order is 1.050% of the transaction value fortrades up to ¥1 million, 0.945% + ¥1,050 for trades of ¥1 million+ to ¥5 million, 0.735% + ¥11,550 for trades of ¥5
million+ to ¥10 million, 0.5775% + ¥27,300 for trades of ¥10 million+ to ¥30 million, 0.420% + ¥74,550 for trades of ¥30
million+ to ¥50 million, 0.2625% + ¥153,300 for trades of ¥50 million+ to ¥100 million, 0.210% + ¥205,800 for trades of¥100 million+ to ¥1 billion, and 0.1575% +¥730,800 for trades of more than ¥1 billion.
*However, the commission is ¥1,050 if the above commission of 1.050% of the transaction value is less than ¥1,050.
*More information concerning commissions is available at any SBI E*TRADE office.

◆Brokerage commissions for listed bonds (per ¥100 of face value)• For Japanese government bonds, the commission is ¥0.42 for a face value up to ¥5 million, ¥36.75 for a face value of ¥5
million+ to ¥10 million, ¥31.50 for ¥10 million+ to ¥50 million, ¥26.25 for ¥50 million+ to ¥100 million, ¥10.50 for ¥100
million+ to ¥1 billion, and ¥5.25 for more than ¥1 billion. For government-guaranteed bonds, municipal bonds, foreign
government bonds, foreign municipal bonds and international institution bonds, the commission is ¥0.63 for a face value
up to ¥5 million, ¥52.50 for a face value of ¥5 million+ to ¥10 million, ¥0.42?? for a face value of ¥10 million+ to ¥50
million, ¥31.50 for ¥50 million+ to ¥100 million, ¥15.75 for ¥100 million+ to ¥1 billion, and ¥10.50 for more than ¥1 billion.
For other bonds, the commission is ¥0.84 for a face value up to ¥5 million, ¥68.25 for a face value of ¥5 million+ to ¥10
million, ¥52.50 for a face value of ¥10 million+ to ¥50 million, ¥36.75 for ¥50 million+ to ¥100 million, ¥0.21?? for ¥100
million+ to ¥1 billion, and ¥15.75 for more than ¥1 billion.
*More information concerning commissions is available at any SBI E*TRADE office.

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