Non-consolidated Financial Results
for the Six Months Ended September 30, 2021
(Under Japanese GAAP)
October 28, 2021
Company name:
Mito Securities Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
8622
URL:
https://www.mito.co.jp/
Representative:
Katsunori Kobayashi, President and Representative Director
Contact:
Masanobu Tamari, Manager, Finance Department
Phone:+81-3-6739-5403
Scheduled filing date of Quarterly Securities Report (Shihanki Hokokusho):November 12, 2021
Scheduled date of dividend payment:
December 2, 2021
Preparation of supplementary briefing material on quarterly financial results:
None
Investors meeting presentation for quarterly financial results:
None(Note) Amounts less than one million yen have been omitted.
1. Non-consolidated financial results for the six months ended September 30, 2021
(from April 1, 2021 to September 30, 2021)(1) Operating results(Percentages indicate year-on-year changes.)

Six months ended
September 30, 2021
September 30, 2020

Operatingrevenue
Millions of
yen

7,176
7,484

Net operating
Operating profit
Ordinary profit
Profitrevenue% Millions of% Millions of% Millions of% Millions of
yen
yen
yen
yen

(4.1)
40.6

7,148
7,448

Basic earnings
per share

Six months ended
September 30, 2021
September 30, 2020

(4.0)
40.9

1,012
1,274

(20.6)
–

1,250
1,479

(15.5)
–

911
1,020

%

(10.7)–

Diluted earnings
per share
Yen

Yen

14.23
15.87

–
–

(2) Non-consolidated financial position
As ofTotal assets
Millions of yen

Net assets
Millions of yen

76,077
71,912

39,99339,709September 30, 2021
March 31, 2021

Reference: Capital (Shareholders’ equity + Valuation and translation adjustments):
As of September 30, 2021: ¥39,993 million
As of March 31, 2021:

Capital ratio%

Capital adequacy ratio
%

52.6
55.2

678.1
697.1

¥39,709 million

2. DividendsFirstquarter-end
Fiscal year
Ended March 31, 2021
Ending March 31, 2022
Ending March 31, 2022 (forecast)

Yen

–
–

Annual dividends per share
SecondThird
Fiscalquarter-end quarter-end
year-end
Yen

6.00

8.00

Yen

Total

Yen

Yen

–

10.00

16.00

–

–

–

(Note 1) Breakdown of fiscal year-end dividends for the fiscal year ended March 31, 2021
Ordinary dividend: ¥8.00 per share
Commemorative dividend: ¥2.00 per share (to commemorate the 100th anniversary of the Company’s founding)(Note 2) Breakdown of second quarter-end dividends for the fiscal year ending March 31, 2022
Ordinary dividend: ¥6.00 per share
Commemorative dividend: ¥2.00 per share (to commemorate the 100th anniversary of the Company’s founding)(Note 3) We have yet to determine the year-end dividend forecast for the fiscal year ending March 31, 2022. You can find the reason andother information in “Explanation on appropriate use of earnings forecast and other special notes” on the second page of thisSummary Information.

3. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)
Our earnings could fluctuate greatly depending on the stock market trend and other factors. We therefore do notdisclose earnings forecast on concern that it could rather adversely affect the investment decision of ourshareholders and investors.
We will promptly disclose the preliminary results figures when the operating results will be substantially
finalized.

[Notes](1) Application of accounting methods used specifically for preparing the quarterly non-consolidated financial
statements:
None(2) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial
statements(i) Changes in accounting policies due to application of new or revised accounting standards: Yes(ii) Changes in accounting policies due to reasons other than above (i):None(iii) Changes in accounting estimates:None(iv) Restatements of prior period financial statements:
None
Note: For more details, please see page 10 Changes in accounting policies of the Attached Materials.
(3) Number of shares issued (common stock)(i) Number of shares issued at the end of the period (including treasury shares)
As of September 30, 2021:
70,689,033 shares
As of March 31, 2021:
70,689,033 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2021:
6,834,335 shares
As of March 31, 2021:
6,390,853 shares(iii) Average number of shares of common stock during the period
Six months ended September 30, 2021:
64,037,018 shares
Six months ended September 30, 2020:
64,289,145 shares
Notes: The number of treasury shares at the end of the period includes the shares of the Company’s stock
held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for Board Benefit Trust (BBT)and Employee Stock Ownership Plan (J-ESOP). In addition, the number of treasury shares, which
was to be deducted from the calculation of the average number of shares of common stock during theperiod, includes the shares of the Company’s stock held by Custody Bank of Japan, Ltd. (Trust
Account E) as trust assets for BBT and J-ESOP.
* This financial results report is not subject to quarterly review procedures to be performed by certified public
accountants or an audit firm.
* Explanation on appropriate use of earnings forecast and other special notes(Reason for not disclosing dividend forecast, etc.)
We have adopted a basic policy of approximately maintaining a 50 percent dividend payout ratio by taking into
account payout consistency, net asset position, and other managerial judgments based on our corporate
philosophy of striving to act in the best interest of our shareholders.
As described in “3. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2022 (from
April 1, 2021 to March 31, 2022),” we have yet to determine the year-end dividend forecast for the fiscal year
ending March 31, 2022 due to difficulty in forecasting earnings. We will promptly disclose the forecast amount at
the timing when the second quarter-end and the fiscal year-end approach (during September 2021 and March
2022).

2

Contents of Attached Materials
1. Overview of operating results, etc. ···················································································

2(1) Quarterly overview of operating results ·········································································

2(2) Quarterly overview of financial position ········································································

3(3) Outlook ···············································································································

5(4) Risk information on COVID-19 infection ·······································································

5

2. Quarterly non-consolidated financial statements and significant notes··········································

6(1) Quarterly non-consolidated balance sheets ······································································

6(2) Quarterly non-consolidated statements of income ·····························································

8

For the six months ended September 30, 2020 and 2021·················································

8(3) Quarterly non-consolidated statements of cash flows ·························································

9(4) Notes to quarterly non-consolidated financial statements ····················································· 10
Going concern assumption ························································································ 10
Significant changes in shareholders’ equity ····································································· 10
Changes in accounting policies ··················································································· 10
3. Supplemental information ······························································································ 11(1) Commission received ······························································································· 11(2) Net trading income·································································································· 11(3) Stock trading volume (excluding futures trading) ······························································ 12(4) Dealing volume of underwriting, offering and secondary distribution ······································ 12(5) Capital adequacy ratio ······························································································ 12(6) Quarterly trends of operating results ············································································· 13-1-1. Overview of operating results, etc.
(1) Quarterly overview of operating results
During the first six months ended September 30, 2021 (hereinafter the “period under review”), Japan’s economy
continued to recover from the negative impact of COVID-19. Although the area covered by the declaration of astate of emergency was expanded in the summer, the composite index (CI) of leading economic indicators
maintained an improving trend after topping 100 in March 2021 for the first time since June 2018. The year-onyear rate of change in the monthly number of effective job offers has also turned positive since May, so certain
economic indicators pointed to a recovery track.
Meanwhile, overseas, demand recovered as economic activity has normalized with the progress in vaccine
rollouts. However, prices have been on an upward trend due to supply problems including in terms of logistics,
and monetary tightening has been implemented in some countries, especially in emerging countries. Globally, thenumber of policy rate hikes by central banks this year has outpaced the number of cuts for the first time in three
years, which indicates that change is afoot for monetary policy, which has exclusively comprised loosening forsome time.
During the period under review, the domestic stock markets stagnated from April to June, then adjusted
substantially in July in response to the spread of COVID-19. In late August, after companies announced theirfinancial results for the April to June period, the Nikkei Stock Average hit its lowest for the year, but turned
around after Fed Chair Powell’s speech at the Jackson Hole conference in the U.S. at the end of August and theannouncement of Prime Minister Suga’s resignation in early September, and reached its highest level in about 31
years on September 14. Subsequently, the Nikkei Stock Average ended the second quarter at 29,452.66 yen,
0.9% higher from the end of March 2021, although the markets showed signs of adjustment toward the end of
September as investors were put off by real estate problems in China and rising U.S. long-term interest rates.
Under these circumstances, we reported decreases in both operating revenue and net operating revenue during
the period under review, with operating revenue of ¥7,176 million (down 4.1% year-on-year) and net operating
revenue of ¥7,148 million (down 4.0% year-on-year), which is the amount of operating revenue less financial
expenses of ¥27 million (down 21.6% year-on-year). Selling, general and administrative expenses were ¥6,135
million (down 0.6% year-on-year). As a result, we reported operating profit of ¥1,012 million (down 20.6% yearon-year), ordinary profit of ¥1,250 million (down 15.5% year-on-year), and profit of ¥911 million (down 10.7%
year-on-year). Note that due to the application of “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition Accounting Standard”), etc., operating
revenue, net operating revenue, and selling, general and administrative expenses each decreased by ¥43 million.
Nevertheless, there was no impact of the application on operating profit, ordinary profit, and profit.
Overview of the operating results are as shown below.
(i) Commission received
During the period under review, total “Commission received” was ¥6,411 million (down 3.2% year-onyear). Note that due to the application of the Revenue Recognition Accounting Standard, etc., “Commission
received” decreased by ¥43 million.
(a) Brokerage commission“Brokerage commission” was ¥3,033 million (down 19.4% year-on-year). This was mainly due to adecrease to ¥479.0 billion (down 14.1% year-on-year) in the volume of stock brokered, resulting inbrokerage commission on stocks of ¥3,009 million (down 18.7% year-on-year). Meanwhile, brokeragecommission of beneficiary certificates was ¥23 million (down 62.3% year-on-year). Note that due to theapplication of the Revenue Recognition Accounting Standard, etc., “Brokerage commission” decreasedby ¥3 million.
(b) Commission for underwriting, secondary distribution and solicitation for selling and others for
professional investors“Commission for underwriting, secondary distribution and solicitation for selling and others for
professional investors” was ¥39 million (up 20.7% year-on-year).

-2-(c) Fees for offering, secondary distribution and solicitation for selling and others for professional investors“Fees for offering, secondary distribution and solicitation for selling and others for professional
investors,” which mainly consist of investment trust sales commissions, was ¥1,494 million (up 3.4%
year-on-year). This was due to strong sales of investment trusts that invest in stocks of AI-relatedcompanies across the world, sustainable growth companies in the United States, and growth companies
in Japan. In addition, “Other fees received” was ¥1,844 million (up 33.7% year-on-year) mainly due toincreases in agency commission for investment trusts and commission for mutual fund wraps. Note that
due to the application of the Revenue Recognition Accounting Standard, etc., “Fees for offering,
secondary distribution and solicitation for selling and others for professional investors” decreased by ¥7
million and “Other fees received” decreased by ¥32 million.
(ii) Net trading income
During the period under review, “Net trading income” was ¥645 million (down 14.0% year-on-year)
consisting of net trading income for stocks of ¥467 million (down 24.9% year-on-year) due to a decrease in
the trading volume US stocks and that for bonds and foreign exchanges of ¥177 million (up 39.7% year-onyear).
(iii) Financial revenue and expenses
During the period under review, “Financial revenue” was ¥107 million (up 13.9% year-on-year) due to anincrease in income from margin transactions, and “Financial expenses” was ¥27 million (down 21.6% yearon-year) due to a decrease in cost of margin transactions, resulting in a net profit of ¥79 million (up 35.5%
year-on-year).
(iv) Selling, general and administrative expenses
During the period under review, “Selling, general and administrative expenses” were ¥6,135 million (down
0.6% year-on-year). This was mainly attributable to a decrease in “Office expenses,” which was partially
offset by an increase in “Real estate expenses.” Note that due to the application of the Revenue Recognition
Accounting Standard, etc., “Selling, general and administrative expenses” decreased by ¥43 million.
(v) Extraordinary income and losses“Extraordinary losses” for the period under review totaled ¥5 million (¥5 million for the same period a year
earlier), and consisted solely of “Impairment loss.”(2) Quarterly overview of financial position(i) Current assets
At the end of the period under review, “Current assets” amounted to ¥59,162 million, an increase of ¥3,919
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥4,585 million
in “Cash and deposits,” ¥403 million in “Margin transaction assets,” and ¥379 million in “Trading
products,” which were partially offset by decreases of ¥1,301 million in “Cash segregated as deposits” and¥214 million in “Cash paid for offering.”(ii) Non-current assets
At the end of the period under review, “Non-current assets” amounted to ¥16,915 million, an increase of¥245 million from the end of the previous fiscal year. This was mainly attributable to an increase of ¥384
million in “Investment securities,” which was partially offset by decreases of ¥80 million in “Property, plantand equipment,” and ¥40 million in “Long-term guarantee deposits.”(iii) Current liabilities
At the end of the period under review, “Current liabilities” amounted to ¥30,772 million, an increase of¥4,047 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥4,495
million in “Deposits received,” ¥674 million in “Borrowings secured by securities,” and ¥240 million in“Provision for share awards for employees,” which were partially offset by decreases of ¥506 million in“Income taxes payable” and ¥194 million in “Guarantee deposits received.”-3-

(iv) Non-current liabilities and reserves under special laws
At the end of the period under review, “Non-current liabilities” and “Reserves under special laws”
collectively amounted to ¥5,311 million, a decrease of ¥166 million from the end of the previous fiscal year.
This was mainly attributable to a decrease of ¥166 million in “Provision for share awards for employees”
due to the reclassification to current liabilities and a decrease of ¥47 million in “Provision for retirement
benefits,” which were partially offset by an increase of ¥75 million of “Deferred tax liabilities.”(v) Net assets
At the end of the period under review, “Net assets” amounted to ¥39,993 million, an increase of ¥283
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥911 million
due to the recording of “Profit” and ¥159 million in “Valuation difference on available-for-sale securities,”
which were partially offset by decreases of ¥651 million due to the payment of “Dividends of surplus,” and¥138 million in “Purchase of treasury shares.”(vi) Cash flow status
At the end of the period under review, cash and cash equivalents amounted to ¥29,711 million, an increaseof ¥4,585 million from the end of the previous fiscal year.
(Cash flows from operating activities)“Net cash provided by operating activities” for the period under review amounted to ¥5,624 million, an
increase of ¥1,867 million from ¥3,756 million of “Net cash provided by operating activities” for the same
period of the previous fiscal year. This cash inflow was mainly attributable to the positive factors of“Increase (decrease) in deposits and guarantee deposits received” of ¥4,300 million, “Decrease (increase) incash segregated as deposits for customers” of ¥1,300 million, and the recording of “Profit before income
taxes” of ¥1,244 million, which were partially offset by the negative factors of “Income taxes paid” of ¥854
million, “Decrease/increase in margin transaction assets/liabilities” of ¥523 million, and “Decrease(increase) in trading products – assets (liabilities)” of ¥401 million.
(Cash flows from investing activities)“Net cash used in investing activities” for the period under review amounted to ¥255 million, an increase of¥90 million from ¥165 million of “Net cash used in investing activities” for the same period of the previous
fiscal year. This cash outflow was mainly attributable to “Purchase of investment securities” of ¥131 millionand “Purchase of property, plant and equipment” of ¥92 million.
(Cash flows from financing activities)“Net cash used in investing activities” for the period under review amounted to ¥790 million, an increase of¥530 million from ¥260 million of “Net cash used in investing activities” for the same period of theprevious fiscal year. This cash outflow was mainly attributable to “Dividends paid” of ¥648 million and“Purchase of treasury shares” of ¥138 million.

-4-(3) Outlook
We are engaged in the financial instruments business, and thus, its earnings could fluctuate greatly depending on
the stock market performance and other factors. We therefore do not disclose earnings forecasts on concern thatthey could rather adversely affect the investment decision of our shareholders and investors.
Instead, every quarter, we will disclose preliminary forecast figures as soon as the operating results are finalized.
The disclosure of such preliminary figures is scheduled at the end of each quarter or the middle of the month
immediately following the end of each fiscal year.
(4) Risk information on COVID-19 infection
If large-scale COVID-19 outbreaks were to occur at numerous branch offices or the head office, severely
restricting sales operations and head office operations, it could have an impact on operating results.
However, we believe that the possibility of this risk materializing is low. Widespread vaccination has helped toprevent the spread of infection, and branch offices are able to conduct sales work from home using cell phones
and tablets. In addition, at the head office, we have taken measures to prevent the suspension of criticaloperations by assigning personnel who perform the same work to different floors.

-5-2. Quarterly non-consolidated financial statements and significant notes(1) Quarterly non-consolidated balance sheets
Previous fiscal year
(As of March 31, 2021)
AssetsCurrent assets:
Cash and deposits
Cash segregated as deposits
Trading products:
Trading securities and other
Derivatives
Trade date accrual
Margin transaction assets:
Loans on margin transactions
Cash collateral pledged for securities borrowing on
margin transactions
Cash paid for offering
Short-term guarantee deposits
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings
Other, net
Intangible assets
Investments and other assets:
Investment securities
Long-term guarantee deposits
Other
Allowance for doubtful accounts
Total non-current assets
Total assets-6-(Millions of yen)
Current quarter(As of September 30, 2021)

25,125
16,942
460
460
0
–
9,685
9,097

29,711
15,640840
837
2
15
10,089
9,956

588

132

1,490
648
890
55,243

1,275
687
902
59,162

3,508
1,746
1,762
321
12,83912,065739
52(17)
16,66971,912

3,427
1,701
1,726
302
13,184
12,449699
54(17)
16,91576,077

(Millions of yen)
Current quarter(As of September 30, 2021)

Previous fiscal year
(As of March 31, 2021)
Liabilities
Current liabilities:
Trade date accrual
Margin transaction liabilities:
Borrowings on margin transactions
Cash received for securities lending on margintransactions
Borrowings secured by securities:
Cash received on debt credit transaction of securities
Deposits received
Guarantee deposits received
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards for employees
Asset retirement obligations
Other current liabilities
Total current liabilities
Non-current liabilities:
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits
Provision for share awards for employees
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Reserves under special laws:
Reserve for financial instruments transaction liabilities
Total reserves under special laws
Total liabilities
Net assets
Shareholders’ equity:
Share capital
Capital surplus:
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings:
Other retained earnings:
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets
-7-

7
1,248
426

–
1,129
720

822

408

1,027
1,027
18,856
733
1,950
932
681
–
–
–
1,287
26,7251,701
1,701
23,351
538
1,950
426
629
27
240
13
764
30,772

800
1,760
2,232
166

800
1,835
2,185
–

9

10

340
66
5,376

330
47
5,209

101

101

101
32,203

101
36,084

12,272

12,272

4,294
1,969
6,264

4,294
1,969
6,264

17,561
7,247
10,313
17,561(1,500)34,597

17,821
7,247
10,573
17,821(1,637)34,7215,111
5,111
39,70971,912

5,271
5,271
39,99376,077

(2) Quarterly non-consolidated statements of income
For the six months ended September 30, 2021
(Millions of yen)
For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)

For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
Operating revenue
Commission received:
Brokerage commission
Commission for underwriting, secondary distribution
and solicitation for selling and others for professional
investors
Fee for offering, secondary distribution and solicitation
for selling and others for professional investors
Other fees received
Net trading income
Financial revenue
Other
Total operating revenue
Financial expenses
Net operating revenue
Selling, general and administrative expenses:
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income:
Dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses:
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income:Reversal of reserve for financial instruments transaction
liabilities
Total extraordinary income
Extraordinary losses:
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit

-8-

6,621
3,763

6,411
3,033

32

39

1,445

1,494

1,379
750
94
18
7,484
35
7,448

1,844
645
107
12
7,176
27
7,148

584
3,489
734
947
186
131
97
6,173
1,274

564
3,495
771
893
181
126
103
6,135
1,012

127
76
204

169
79
248

0
0
1,479

11
11
1,250

0

–

0

–

2
5
8
1,471
415
35
451
1,020

–
5
5
1,244
364
(30)
333
911

(3) Quarterly non-consolidated statements of cash flows
For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
Cash flows from operating activities:
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for share-based remuneration for
employees
Increase (decrease) in provision for share-based remuneration for
directors (and other officers)
Increase (decrease) in reserve for financial instruments transaction
liabilities
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Decrease (increase) in cash segregated as deposits for customers
Decrease (increase) in trading products - assets (liabilities)
Decrease/increase in margin transaction assets/liabilities
Decrease (increase) in short-term guarantee deposits
Decrease (increase) in cash paid for subscription
Increase (decrease) in borrowings secured by securities
Increase (decrease) in deposits and guarantee deposits received
Increase/decrease in other assets/liabilities
SubtotalInterest and dividends received
Interest paid
Settlement package paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for retirement of property, plant and equipment
Payments for asset retirement obligations
Loan advances
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-9-(Millions of yen)
For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)

1,471
186
5
(5)
134

1,244
181
5
(47)
(52)

31

27

52

73

(4)

0

(0)

–

(222)
35
2
(2,299)(927)(2,122)
(0)
19
2,752
4,605
39
3,754
210
(35)
–
(172)
3,756

(277)
27
–
1,300
(401)
(523)
2
214
674
4,300
(488)
6,264
278
(27)
(35)
(854)
5,624

(50)
(104)
(5)
(4)
(23)
(3)
5
20
(165)

(131)
(92)
(36)
(0)
–
(4)
7
2
(255)

–
(259)
(1)
(260)
(43)
3,287
23,434
26,722

(138)
(648)
(3)
(790)
7
4,585
25,12529,711

(4) Notes to quarterly non-consolidated financial statements
Going concern assumption
Not applicable.
Significant changes in shareholders’ equity
Not applicable.
Changes in accounting policies
1) Application of the Accounting Standard for Revenue Recognition, etc.
We have applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31,
2020; hereinafter the “Accounting Standard for Revenue Recognition”), etc. from the beginning of the firstquarter of the fiscal year ending March 31, 2022. When control of a promised good or service is transferred
to a customer, we recognize revenue at the amount expected to be received in exchange for the good orservice. As a result, rebates and other consideration to be paid to a customer were previously accounted foras selling, general and administrative expenses, but the accounting method has been changed to the one that
deducts them from the transaction price.
The application of the Accounting Standard for Revenue Recognition, etc. is pursuant to the transitional
treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of the retroactive application, assuming the new accounting policy had been applied
to periods prior to the beginning of the first quarter of the fiscal year ending March 31, 2022, was added toor subtracted from the beginning balance of retained earnings of the first quarter of the fiscal year ending
March 31, 2022, and thus the new accounting policy was applied from such beginning balance.
As a result, operating revenue, net operating revenue, and selling, general and administrative expenses
decreased by ¥43 million. There was no impact of the change on operating profit, ordinary profit, profit
before income taxes, or the beginning balance of retained earnings of the fiscal year ending March 31, 2022.
2) Application of the Accounting Standard for Fair Value Measurement, etc.
We have applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4,
2019; hereinafter the “Accounting Standard for Fair Value Measurement”), etc. from the beginning of thefirst quarter of the fiscal year ending March 31, 2022. In accordance with the transitional treatment set forthin Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019), we apply the new
accounting policy set forth in the Accounting Standard for Fair Value Measurement, etc. for future periods.
This has no impact on the consolidated financial statements.

- 10 -

3. Supplemental information(1) Commission received(i) Commission by line item
(Millions of yen)

Brokerage commission:
Stocks
Bonds
Beneficiary certificates
Commission for underwriting, secondary
distribution and solicitation for sellingand others for professional investors:
Stocks
Bonds
Fee for offering, secondary distribution
and solicitation for selling and others for
professional investors
Other fees received
Total

For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
3,763[3,700][0][63]

For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
3,033[3,009]
[–]
[23]

32

39

120.7

[32]
[0]

[14]
[24]

46.4
8,100.0

1,445

1,494

103.4

1,379
6,621

1,844
6,411

133.7
96.8

For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
3,737
0
2,862
20
6,621

For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
3,030
26
3,342
12
6,411

For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
623
126
[72]
[54]
750

For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
467
177
[105]
[71]
645

(ii) Commission by product

Stocks
Bonds
Beneficiary certificates
Other
Total

80.6
81.3
–
37.7

(Millions of yen)

(2) Net trading income

Stocks, etc.
Bonds, foreign exchange, etc.:
Bonds, etc.
Foreign exchange, etc.
Total

Year-on-yearchange (%)

Year-on-yearchange (%)
81.1
3,036.3
116.8
60.3
96.8
(Millions of yen)

- 11 -

Year-on-yearchange (%)
75.1
139.7
145.5
132.0
86.0

(3) Stock trading volume (excluding futures trading)

Total:
Brokerage
Dealing
Brokerage (%)
Exchange participation share (%)
Brokerage commission per stock on clienttransaction (yen)For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)
NumberAmountof shares
330
608,979[326][557,694][3][51,285]
98.8
91.6
0.07
0.06
11.32

(Millions of shares, Millions of yen)
For the six months ended
September 30, 2021
Year-on-year change (%)(From April 1, 2021
to September 30, 2021)
NumberNumberAmountAmountof sharesof shares
232
516,602
70.2
84.8
[230]
[479,055][70.4][85.9][1][37,547][50.5][73.2]
99.1
92.7
0.06
0.05
–
13.08

(4) Dealing volume of underwriting, public offering and secondary distribution
For the six months ended
September 30, 2020
(From April 1, 2020
to September 30, 2020)(Thousands of shares, Millions of yen)
For the six months ended
September 30, 2021
Year-on-year change (%)(From April 1, 2021
to September 30, 2021)

Underwriting:Stock (Number of shares)
1,566
163
10.4
Stock (Amount)
1,873
415
22.2
Bond (Face value)
150
2,150
1,433.3
Beneficiary certificates (Amount)–––
Commercial paper & foreign securities–––(Face value)
Offering and secondary distribution
Stock (Number of shares)
1,810
113
6.3
Stock (Amount)
2,170
252
11.6
Bond (Face value)
45
2,010
4,466.7
Beneficiary certificates (Amount)
203,845
188,228
92.3
Commercial paper & foreign securities–––(Face value)
Note: The dealing volume of offering and secondary distribution includes the amount of secondary distribution and the dealing
volume of private offering.

(5) Capital adequacy ratio

Basic items

Complementary items

Deductible assets
Unfixed equity capital(A) + (B) – (C)(A)
Valuation difference on available-forsale securities
Reserve for financial instruments
transaction liabilities
Total
(B)
(C)
(D)

Previous fiscal year
(As of March 31, 2021)
33,946(Millions of yen)
Current quarter(As of September 30, 2021)
34,200

5,111

5,271

101

101

5,213

5,373

5,342

5,250

33,81734,323Market risk
1,531
1,587
Counterparty risk
413
431
Risk items
Basic risk
2,905
3,042
Total
(E)
4,850
5,061
Capital adequacy ratio (%)(D) / (E) × 100
697.1
678.1
Note: The number of treasury shares, which was to be deducted from the calculation of basic items, includes the shares of theCompany’s stock held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for BBT and J-ESOP.

- 12 -

(6) Quarterly trends of operating results(Millions of yen)Previous fiscal year

Current fiscal year

2nd quarter(Jul. 1, 2020 Sep. 30, 2020)

3rd quarter(Oct. 1, 2020 Dec. 31, 2020)

4th quarter(Jan. 1, 2021 Mar. 31, 2021)

1st quarter(Apr. 1, 2021 Jun. 30, 2021)

2nd quarter(Jul. 1, 2021 Sep. 30, 2021)

Commission received

3,544

3,603

3,666

3,177

3,233

Net trading income

400

214

275

279

365

Financial revenue

55

53

51

52

55

Other

9

9

9

6

6

4,009

3,880

4,001

3,514

3,661

Operating revenue:

Total operating revenue

20

20

15

14

13

3,989

3,860

3,985

3,500

3,647

308

346

399

287

276

Personnel expenses

1,803

1,746

1,720

1,754

1,740

Real estate expenses

350

367

369

412

358

Office expenses

464

466

492

455

438

Depreciation

92

95

97

86

94

Taxes and dues

53

50

48

77

49

45

45

60

49

53

3,118

3,116

3,187

3,124

3,011

870

743

798

376

636

41

148

50

205

43

Financial expenses
Net operating revenue
Selling, general and administrative
expenses:
Trading related expenses

Other
Total selling, general and administrative
expenses
Operating Profit
Non-operating income

0

1

12

0

11

Ordinary profit

911

891

836

581

668

Extraordinary income:Reversal of reserve for financial
instruments transaction liabilities
Total extraordinary income

(4)

(0)

–

–

–

(4)

(0)

–

–

–

Extraordinary losses:
Provision of reserve for financial
instruments transaction liabilities
Loss on sale of investment securities

–

1

1

–

–

–

1

72

–

–

Loss on valuation of investment securities

–

–

241

–

–

Impairment loss

–

–

–

5

–

Settlement package

–

–

32

–

–

Total extraordinary losses

–

2

348

5

–

Profit before income taxes

907

887

487

576

668

Income taxes - current

334

170

379

3

360

Non-operating expenses

Income taxes - deferred

(55)

115

(136)

125

(155)

Total income taxes

278

285

242

128

204

Profit

628

602

245

447

463

- 13 -