Non-consolidated Financial Results
for the Six Months Ended September 30, 2022
(Under Japanese GAAP)
October 28, 2022
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 11, 2022
Scheduled date of dividend payment:
December 2, 2022
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, 2022
(from April 1, 2022 to September 30, 2022)(1) Operating results(Percentages indicate year-on-year changes.)

Six months ended
September 30, 2022
September 30, 2021

Operatingrevenue
Millionsof yen

5,770
7,176

%

Net operating
revenue
Millions%of yen(19.6)
(4.1)

5,742
7,148

Basic earnings
per share

Six months ended
September 30, 2022
September 30, 2021

(19.7)(4.0)

Operating profit
Millionsof yen(34)
1,012

Ordinary profit% Millionsof yen–(20.6)

Profit% Millionsof yen(81.0)(15.5)

238
1,250

169
911

%

(81.4)(10.7)

Diluted earnings
per share
Yen

Yen

2.64
14.23

–
–

(2) Non-consolidated financial position
As of
September 30, 2022
March 31, 2022

Total assets
Millions of yen

Net assets
Millions of yen

65,19564,511

38,84539,071

Reference: Capital (Shareholders’ equity + Valuation and translation adjustments):
As of September 30, 2022: ¥38,845 million
As of March 31, 2022:

Capital ratio%

Capital adequacy ratio
%

59.6
60.6

699.9
695.4

¥39,071 million

2. Dividends
Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-endFirst
quarter-end

Fiscal year
Ended March 31, 2022
Ending March 31, 2023
Ending March 31, 2023 (forecast)

Yen

–
–

Yen

8.00

2.00

Yen

Total

Yen

Yen

–

6.00

14.00

–

–

–

(Note 1) Breakdown of second quarter-end dividends for the fiscal year ended 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 2) We have yet to determine the year-end dividend forecast for the fiscal year ending March 31, 2023. 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, 2023
(from April 1, 2022 to March 31, 2023)
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, 2022:
70,689,033 shares
As of March 31, 2022:
70,689,033 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2022:
6,061,329 shares
As of March 31, 2022:
6,827,729 shares(iii) Average number of shares of common stock during the period
Six months ended September 30, 2022:
64,241,718 shares
Six months ended September 30, 2021:
64,037,018 shares
Note: 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 stockduring the period, 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, 2023 (from
April 1, 2022 to March 31, 2023),” we have yet to determine the year-end dividend forecast for the fiscal year
ending March 31, 2023 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 2022 and March
2023).

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 ···············································································································

4(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, 2021 and 2022 ......................................................................

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, 2022 (hereinafter the “period under review”), Japan’s economy
had increasingly larger variances in economic statistics with the influence of continued monetary tightening inmajor countries to tackle inflation. Japan’s nominal and real GDP both steadily grew for three consecutive quarters
until, and including, the April–June 2022 quarter. The Business Outlook Survey also has revealed that the “rising”
outlook prevailed both for BSI on “business conditions” and for BSI on “general domestic economic conditions”
with respect to large enterprises for the October–December 2022 quarter and the January–March 2023 quarter. The
employment situation also remained positive with the unemployment rate declining and the jobs-to-applicants ratio
improved. On the other hand, data that raise concern about economic outlook have been increasing such that thecomposite index (CI) of leading economic indicators decreased to lower than a reference value in July 2022 forthe first time since February 2021, and real disposable income of workers’ households has turned downward sinceApril 2022 although the year-over-year CPI (overall nationwide) has continued its ascent since September 2021.
The U.S. economy had two consecutive quarters of negative growth of GDP in the January–March 2022 quarterand the April–June 2022 quarter, but maintained a positive growth of GDI for the same period. The situation issuch that caution about rising prices cannot be relaxed as demonstrated by factors such as steady increases in nonfarm payrolls and the average hourly rate and a declining trend of the unemployment rate as shown by employment
indices, and capacity utilization rates of the mining and manufacturing industries reaching 80% this summer.
During the period under review, the domestic stock markets were significantly impacted by the monetary policiesof the world’s major economies, including continued monetary tightening to combat inflation in emerging
countries let alone in developed countries. The Tokyo stock market remained resilient until this summer as the U.S.
inflation rate was initially expected to drop during the period from spring to summer. The U.S. inflation rate,
however, remained high. Following Fed Chair Powell’s implication at the Jackson Hole conference in late Augustthat rapid monetary tightening would be continued to give priority to inflation control, the U.S. stock prices
declined in response to the Fed’s stance to accept sufferings of companies and consumers, which resulted in theTokyo stock market being forced to make major adjustments after mid-September. Ultimately, the Nikkei Averagefor the period under review was 25,937.21 yen, down 6.8% from the end of March 2022.
Under these circumstances, we reported decreases in both operating revenue and net operating revenue during
the period under review, with operating revenue of ¥5,770 million (down 19.6% year-on-year) and net operating
revenue of ¥5,742 million (down 19.7% year-on-year), which is the amount of operating revenue less financial
expenses of ¥27 million (down 1.3% year-on-year). Furthermore, selling, general and administrative expenses
were ¥5,776 (down 5.9% year-on-year). As a result, we reported an operating loss of ¥34 million (compared toan operating profit of ¥1,012 million for the same period a year earlier), an ordinary profit of ¥238 million (down
81.0% year-on-year), and profit of ¥169 million (down 81.4% year-on-year) after deducting tax expenses of ¥12
million (down 96.3% year-on-year).
Overview of the operating results are as shown below.
(i) Commission received
During the period under review, total “Commission received” was ¥4,904 million (down 23.5% year-onyear).
(a) Brokerage commission“Brokerage commission” was ¥1,930 million (down 36.4% year-on-year). This was mainly due to adecrease to ¥371.2 billion (down 22.5% year-on-year) in the volume of stock brokered, resulting inbrokerage commission on stocks of ¥1,907 million (down 36.6% year-on-year). Meanwhile, brokeragecommission of beneficiary certificates was ¥22 million (down 4.0% year-on-year).
(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 ¥3 million (down 90.6% year-on-year).

-2-(c) Fees for offering, secondary distribution and solicitation for selling and others for professional
investors; and other fees received“Fees for offering, secondary distribution and solicitation for selling and others for professional
investors,” which mainly consist of investment trust sales commissions, were ¥1,217 million (down
18.5% year-on-year). This was due to the fact that despite focusing on sales of investment trusts thatinvest in global USD-denominated equity and debt securities, stocks of sustainable growth companies in
the U.S., and cybersecurity-related companies across the world, the investment environment
deteriorated and sales dropped. In addition, “Other fees received” were ¥1,752 million (down 5.0%
year-on-year) mainly due to decreases in commission for mutual fund wraps and agency commission
for investment trusts.
(ii) Net trading income
During the period under review, “Net trading income” was ¥759 million (up 17.7% year-on-year) consistingof net trading income for stocks of ¥535 million (up 14.5% year-on-year) due to an increase in trading valueof US stocks and that for bonds and foreign exchanges of ¥223 million (up 26.1% year-on-year).
(iii) Financial revenue and expenses
During the period under review, “Financial revenue” was ¥93 million (down 12.6% year-on-year) due to adecrease in income from margin transactions, and “Financial expenses” were ¥27 million (down 1.3% yearon-year) due to an increase in the cost of margin transactions, resulting in a net profit of ¥66 million (down
16.6% year-on-year).
(iv) Selling, general and administrative expenses
During the period under review, “Selling, general and administrative expenses” were ¥5,776 million (down
5.9% year-on-year). This was mainly attributable to an increase in “Depreciation expense” due to the usefullife of noncurrent assets that are unlikely to be used after the relocation of the head office being shortened
during the previous business year, and a decrease in “Personnel expenses” such as addition to provision forbonuses due to lower operating revenue.
(v) Extraordinary income and losses
During the period under review, “Head office relocation expenses” ¥56 million were recorded as“Extraordinary losses.”(2) Quarterly overview of financial position(i) Current assets
At the end of the period under review, “Current assets” amounted to ¥49,876 million, an increase of ¥1,109
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥1,408 million
in “Trading products,” ¥923 million in “Cash paid for offering,” and ¥491 million in “Cash and deposits,”
which were partially offset by decreases of ¥1,416 million in “Cash segregated as deposits” and ¥229
million in “Margin transaction assets.”(ii) Non-current assets
At the end of the period under review, “Non-current assets” amounted to ¥15,319 million, a decrease of¥425 million from the end of the previous fiscal year. This was mainly attributable to decreases of ¥323
million in “Investment securities” and ¥179 million in “Long-term guarantee deposits.”(iii) Current liabilities
At the end of the period under review, “Current liabilities” amounted to ¥21,671 million, an increase of¥1,281 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥887
million in “Margin transaction liabilities,” ¥674 million in “Deposits received,” and ¥279 million in“Borrowings secured by securities,” which were partially offset by decreases of ¥284 million in “Provision
for share awards for employees,” ¥192 million in “Guarantee deposits received,” and ¥65 million in“Provision for bonuses.”-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 ¥4,678 million, a decrease of ¥371 million from the end of the previous fiscal year.
This was mainly attributable to decreases of ¥249 million in “Deferred tax liabilities” and ¥154 million in“Asset retirement obligations,” which were partially offset by an increase of ¥40 million in “Provision forshare awards for employees.”(v) Net assets
At the end of the period under review, “Net assets” amounted to ¥38,845 million, a decrease of ¥225 million
from the end of the previous fiscal year. This was mainly attributable to decreases of ¥390 million in“Dividends of surplus,” ¥197 million in “Valuation difference on available-for-sale securities,” and ¥69
million in “Acquisition of treasury shares,” which were partially offset by increases of ¥262 million in“Disposal of treasury shares” and ¥169 million in “Profit.”(vi) Cash flow status
At the end of the period under review, cash and cash equivalents amounted to ¥23,214 million, an increaseof ¥491 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 ¥1,287 million, adecrease of ¥4,337 million from ¥5,624 million of “Net cash provided by operating activities” for the same
period of the previous fiscal year. This cash inflow was mainly attributable to increases of ¥1,400 million in“Decrease/increase in cash segregated as deposits for customers,” ¥1,116 million in “Decrease/increase in
assets/liabilities for margin transaction,” ¥482 million in “Decrease/increase in deposits and guarantee
deposits received,” ¥290 million in “Decrease/increase in other assets/liabilities,” and ¥279 million in“Increase (decrease) in borrowings secured by securities,” which were partially offset by decreases of¥1,400 million in “Decrease/increase in trading products - assets/liabilities” and ¥923 million in“Decrease/increase in cash paid for offering.”(Cash flows from investing activities)“Net cash used in investing activities” for the period under review amounted to ¥563 million, a decrease of¥308 million from ¥255 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 property, plant and equipment” of¥220 million, “Payments of leasehold deposits” of ¥154 million, and “Purchase of investment securities” of¥114 million.
(Cash flows from financing activities)“Net cash used in financing activities” for the period under review amounted to ¥461 million, an increase of¥328 million from ¥790 million of “Net cash used in financing activities” for the same period of theprevious fiscal year. This cash outflow was mainly attributable to “Dividends paid” of ¥389 million and“Purchase of treasury shares” of ¥69 million.
(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-(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 been achieved
despite concerns about variants, and branch offices are able to conduct sales work from home using cell phones
and tablets. The Customer Center has established a system that enables it to cover duties of offices where clustersof COVID-19 infections have been confirmed. In addition, at the head office, we have taken measures to preventthe suspension of critical operations 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(Millions of yen)
Current quarter(As of September 30, 2022)

Previous fiscal year
(As of March 31, 2022)
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
Income taxes refund receivable
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-

22,723
13,445
625
623
2
31
8,409
8,291

23,214
12,029
2,033
2,032
0
23
8,180
7,777

118

402

1,736
689
–
1,104
48,766

2,660
978
29
726
49,876

3,339
1,680
1,658
320
12,084
11,196845
60(17)15,74564,511

3,431
1,569
1,861
306
11,581
10,873666
59(17)
15,31965,195

(Millions of yen)
Current quarter(As of September 30, 2022)

Previous fiscal year
(As of March 31, 2022)
Liabilities
Current liabilities:
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
Provision for share awards for directors (and otherofficers)
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

747
428

1,634
1,046

318

588

1,090
1,090
14,383
626
1,950
149
536
–
284

1,370
1,370
15,058
433
1,950
87
470
5
–

2

–

13
605
20,390158
504
21,671

800
1,485
2,202
–

800
1,235
2,182
40

9

11

397
52

243
62

Total non-current liabilities
Reserves under special laws:
Reserve for financial instruments transaction liabilities

4,947

4,576

101

101

Total reserves under special laws
Total liabilities

101
25,439101
26,34912,272

12,272

4,294
1,969
6,264

4,294
1,969
6,264

17,778
7,247
10,531
17,778(1,635)34,68017,557
7,247
10,31017,557(1,442)
34,652

4,391
4,391
39,07164,511

4,193
4,193
38,84565,195

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-

(2) Quarterly non-consolidated statements of income
For the six months ended September 30, 2022
(Millions of yen)
For the six months ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)

For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
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 (loss)
Non-operating income:
Dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses:
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary losses:
Provision of reserve for financial instruments transaction
liabilities
Impairment loss
Head office relocation expenses
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit

-8-

6,411
3,033

4,904
1,930

39

3

1,494

1,217

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

1,752
759
93
13
5,770
27
5,742

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

479
3,199
775
870
226
112
113
5,776
(34)

169
79
248

184
88
272

11
11
1,250

0
0
238

–

0

5
–
5
1,244
364
(30)
333
911

–
56
56
182
12
0
12
169

(3) Quarterly non-consolidated statements of cash flows(Millions of yen)

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 (and other 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
Head office relocation expenses
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
Head office relocation expenses 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
Payments of leasehold deposits
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-

For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)

For the six months ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)

1,244
181
5
(47)
(52)
27
73

182
226
–
(20)
(65)
5
(244)

0

(0)

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

0
(279)
27
56
1,400
(1,400)
1,116
38
(923)
279
482
290
1,171
281
(26)
(36)
–
(102)
1,287

(131)
(92)
(36)
(0)
–
(4)
7
–
2
(255)

(114)
(220)
(58)
(12)
(11)
(7)
7
(154)
8
(563)

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

(69)
(389)
(3)
(461)
229
491
22,723
23,214

(4) Notes to quarterly non-consolidated financial statements
Going concern assumption
Not applicable.
Significant changes in shareholders’ equity
Not applicable.
Changes in accounting policies
We have applied the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ
Guidance No. 31; June 17, 2021; hereinafter the “Implementation Guidance on Accounting Standard for Fair
Value Measurement”) from the beginning of the first quarter of the fiscal year ending March 31, 2023. In
accordance with the transitional treatment set forth in Paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, we apply the new accounting policy set forth in the
Implementation Guidance on Accounting Standard for Fair Value Measurement 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:
StocksBeneficiary 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, 2021
(From April 1, 2021
to September 30, 2021)
3,033[3,009][23]

For the six months ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
1,930[1,907]
[22]

39

3

9.4

[14]
[24]

[3]
[0]

20.4
2.6

1,494

1,217

81.5

1,844
6,411

1,752
4,904

95.0
76.5

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, 2022
(From April 1, 2022
to September 30, 2022)
1,915
1
2,967
19
4,904

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

For the six months ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
535
223
[194]
[28]
759

(ii) Commission by product

Stocks
Bonds
Beneficiary certificates
Other
Total

63.6
63.4
96.0

(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 (%)
63.2
4.5
88.8
157.6
76.5
(Millions of yen)

- 11 -

Year-on-yearchange (%)
114.5
126.1
183.7
40.5
117.7

(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, 2021
(From April 1, 2021
to September 30, 2021)
NumberAmountof shares
232
516,602[230][479,055][1][37,547]
99.1
92.7
0.06
0.05

(Millions of shares, Millions of yen)
For the six months ended
September 30, 2022
Year-on-year change (%)(From April 1, 2022
to September 30, 2022)
NumberNumberAmountAmountof sharesof shares
198
409,813
85.6
79.3
[196]
[371,259][85.5][77.5][1][38,554][96.8][102.7]
99.0
90.6
0.05
0.04
–

13.08

9.70

(4) Dealing volume of underwriting, public offering and secondary distribution
For the six months ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)(Thousands of shares, Millions of yen)
For the six months ended
September 30, 2022
Year-on-year change (%)(From April 1, 2022
to September 30, 2022)

Underwriting:Stock (Number of shares)
163
88
54.0
Stock (Amount)
415
55
13.3
Bond (Face value)
2,150
150
7.0
Beneficiary certificates (Amount)–––
Commercial paper & foreign–––
securities (Face value)
Offering and secondary distribution
Stock (Number of shares)
113
93
82.5
Stock (Amount)
252
57
22.9
Bond (Face value)
2,010
139
6.9
Beneficiary certificates (Amount)
188,228
156,213
83.0
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)(Millions of yen unless otherwise indicated)
Previous fiscal year
Current quarter(As of March 31, 2022)(As of September 30, 2022)
34,28934,522(A)
Valuation difference on available-forsale securities
Reserve for financial instruments
transaction liabilities
Total
(B)
(C)
(D)

4,391

4,193

101

101

4,493

4,295

5,375

5,238

33,40633,579Market risk
1,359
1,541
Counterparty risk
432
357
Risk items
Basic risk
3,011
2,898
Total
(E)
4,803
4,797
Capital adequacy ratio (%)(D) / (E) × 100
695.4
699.9
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, 2021 Sep. 30, 2021)

3rd quarter(Oct. 1, 2021 Dec. 31, 2021)

4th quarter(Jan. 1, 2022 Mar. 31, 2022)

1st quarter(Apr. 1, 2022 Jun. 30, 2022)

2nd quarter(Jul. 1, 2021 Sep. 30, 2022)

Commission received

3,233

3,263

2,442

2,322

2,581

Net trading income

365

438

248

292

466

Financial revenue

55

52

48

44

49

Other

6

6

6

6

6

3,661

3,760

2,746

2,666

3,104

Operating revenue:

Total operating revenue

13

12

12

12

14

3,647

3,748

2,734

2,653

3,089

276

265

250

228

251

Personnel expenses

1,740

1,734

1,546

1,549

1,649

Real estate expenses

358

395

408

407

368

Office expenses

438

459

457

462

407

Depreciation

94

122

137

112

113

Taxes and dues

49

49

39

66

46

53

44

58

46

66

3,011

3,072

2,899

2,874

2,902

636

676

(165)

(221)

186

Non-operating income

43

146

56

219

53

Non-operating expenses

11

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

Other
Total selling, general and administrative
expenses
Operating profit (loss)

1

1

2

(2)

821

(110)

(4)

242

–

–

–

0

0

–

–

–

–

56

–

–

0

56

Ordinary profit (loss)
Extraordinary losses:
Provision of reserve for financial
instruments transaction liabilities
Impairment loss
Total extraordinary losses
Profit (loss) before income taxes

668

821

(110)

(4)

186

Income taxes - current

360

155

56

6

5

Income taxes - deferred

(155)

129

(108)

(53)

53

Total income taxes

204

284

(51)

(47)

59

Profit (loss)

463

537

(58)

42

127

- 13 -