Non-consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Under Japanese GAAP)
January 30, 2023
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:+81-3-6636-3071
Scheduled filing date of Quarterly Securities Report (Shihanki Hokokusho):February 10, 2023–
Scheduled date of dividend payment:
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 nine months ended December 31, 2022
(from April 1, 2022 to December 31, 2022)(1) Operating results(Percentages indicate year-on-year changes.)

Nine months ended
December 31, 2022
December 31, 2021

Operatingrevenue
Millionsof yen8,386
10,936%(23.3)(3.8)

Net operating
revenue
Millions%of yen8,343
10,896

Basic earnings
per share

Nine months ended
December 31, 2022
December 31, 2021

(23.4)(3.6)

Operating profit
Millionsof yen

(221)
1,688

Ordinary profit% Millionsof yen–(16.3)

Profit% Millionsof yen(89.9)(12.6)

209
2,072

621
1,448

%

(57.1)(10.7)

Diluted earnings
per share
Yen

Yen

9.66
22.64

–
–

(2) Non-consolidated financial position
As ofDecember 31, 2022
March 31, 2022

Total assets
Millions of yen

Net assets
Millions of yen

67,04064,51138,79039,071

Reference: Capital (Shareholders’ equity + Valuation and translation adjustments):
As of December 31, 2022:¥38,790 million
As of March 31, 2022:

Capital ratio%

Capital adequacy ratio
%

57.9
60.6

722.0
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) Although we have yet to determine the year-end dividend forecast for the fiscal year ending March 31, 2023, the Company has
set a minimum annual dividend of ¥20.00 from the fiscal year ending March 2023 to the fiscal year ending March 2025. Yearend dividends are scheduled to be submitted to the Ordinary General Meeting of Shareholders each year.

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 affect the investment decision of our shareholders andinvestors.
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 8 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 December 31, 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 December 31, 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
Nine months ended December 31, 2022: 64,370,848 shares
Nine months ended December 31, 2021: 63,976,878 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. However, for the three fiscal years under the
Sixth Mid-term Management Plan (from the fiscal year ending March 2023 to the fiscal year ending March
2025), the Company would like to express its gratitude to shareholders for their support thus far and has decided
to set the minimum annual dividend per share at ¥20.00, taking into account the current state of net assets. 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 ·······································································

4

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

5(1) Quarterly non-consolidated balance sheets ······································································

5(2) Quarterly non-consolidated statements of income .................................................................................

7

For the nine months ended December 31, 2022 ....................................................................................

7(3) Notes to quarterly non-consolidated financial statements ····················································

8

Going concern assumption ························································································

8

Significant changes in shareholders’ equity ·····································································

8

Changes in accounting policies ···················································································

8

3. Supplemental information ······························································································

9(1) Commission received ·······························································································

9(2) Net trading income··································································································

9(3) Stock trading volume (excluding futures trading) ······························································ 10(4) Dealing volume of underwriting, offering and secondary distribution ······································ 10(5) Capital adequacy ratio ······························································································ 10(6) Quarterly trends of operating results ············································································· 11-1-1. Overview of operating results, etc.
(1) Quarterly overview of operating results
During the first nine months ended December 31, 2022 (hereinafter the “period under review”), Japan’s
economy, while remaining strong, saw the effect of continuing price increase spread gradually. From theperspective of employment environment, the monthly effective job offer ratio was on an increasing trend due tothe growth in the number of job openings. Corporate earnings remained steady as we continued to see increase inboth sales and profit from the April–June 2022 quarter. However, after Japan's CPI (all items excluding fresh
food and energy) began to rise in April, the rate of inflation continued to increase through November, causing
workers’ real disposable income to show a downward trend from April to November. Furthermore, Japan’s bothnominal and real GDP growth fell in the July–September 2022 quarter, and diffusion index such as composite
index (CI) also dipped below the reference value of 100 in July and October 2022 for leading, lagging, andcoincident indicators, suggesting that the economy is at standstill.
The U.S. economy made a recovery to positive growth in real GDP for the July–September 2022 quarter, after
two consecutive quarters of negative growth. While central banks remained vigilant on inflation such as strong
employment and upward trend in average wage levels, we are seeing the effects of interest rate hike as core CPI
inflation peaked in June and continues to moderate.
During the period under review, the domestic stock markets were greatly impacted by the monetary policies of
the world’s major economies. Amid the continued monetary tightening to combat inflation in emerging countries
let alone in developed countries, the Tokyo market remained solid from the end of October to November, given
increased expectations for slowing inflation and the pace of rate hikes in the U.S. However, due to the Fed’scontinued hawkish tone and the change in large-scale monetary easing policy by the BOJ, stock prices corrected
sharply towards the end of the year. The Nikkei Average for the period under review was 26,094.50 yen, down
6.2% 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 ¥8,386 million (down 23.3% year-on-year) and net operating
revenue of ¥8,343 million (down 23.4% year-on-year), which is the amount of operating revenue less financial
expenses of ¥42 million (up 5.7% year-on-year). Furthermore, selling, general and administrative expenses were
¥8,565 million (down 7.0% year-on-year). As a result, we reported an operating loss of ¥221 million (compared
to an operating profit of ¥1,688 million for the same period a year earlier), and an ordinary profit of ¥209 million(down 89.9% year-on-year). After extraordinary income of ¥738 million (compared to ¥– million for the same
period a year earlier), extraordinary losses of ¥199 million (compared to ¥5 million for the same period a year
earlier), and tax expenses of ¥127 million (down 79.4% year-on-year), profit was ¥621 million (down 57.1%
year-on-year).
Overview of the operating results are as shown below.
(i) Commission received
During the period under review, total “Commission received” was ¥7,216 million (down 25.4% year-onyear).
(a) Brokerage commission“Brokerage commission” was ¥2,847 million (down 37.1% year-on-year). This was mainly due to adecrease to ¥540.9 billion (down 25.6% year-on-year) in the volume of stock brokered, resulting inbrokerage commission on stocks of ¥2,813 million (down 37.4% year-on-year). Meanwhile, brokeragecommission of beneficiary certificates was ¥34 million (down 6.3% 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 ¥22 million (down 65.4% year-on-year).
(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 ¥1,738 million (down
23.7% 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 ¥2,607 million (down 6.9%
-2-

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 ¥1,003 million (down 7.4% year-on-year)
consisting of net trading income for stocks of ¥771 million (down 6.7% year-on-year) due to a decrease in
the trading value of US stocks and that for bonds and foreign exchanges of ¥231 million (down 9.9% yearon-year).
(iii) Financial revenue and expenses
During the period under review, “Financial revenue” was ¥146 million (down 8.0% year-on-year) due to adecrease in income from margin transactions, and “Financial expenses” were ¥42 million (up 5.7% year-onyear) due to an increase in cost of margin transactions, resulting in a net profit of ¥104 million (down 12.7%
year-on-year).
(iv) Selling, general and administrative expenses
During the period under review, “Selling, general and administrative expenses” were ¥8,565 million (down
7.0% 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 (carried out inNovember 2022) being shortened during the previous business year, and a decrease in “Personnel expenses”
such as bonuses due to lower operating revenue.
(v) Extraordinary income and losses
During the period under review, “Extraordinary income” was ¥738 million (¥– million for the same period ayear earlier), and consisted solely of “Gain on sales of investment securities.” “Extraordinary losses”
consisted of “Head office relocation expenses” of ¥199 million (¥– million for the same period a year
earlier), and “Provision of reserve for financial instruments transaction liabilities” of ¥0 million (¥– million
for the same period a year earlier). As a result, net extraordinary income was ¥539 million (net losses of ¥5
million for the same period a year earlier).
(2) Quarterly overview of financial position(i) Current assets
At the end of the period under review, “Current assets” amounted to ¥53,985 million, an increase of ¥5,219
million from the end of the previous fiscal year. This was mainly attributable to increases of ¥5,280 million
in “Cash and deposits,” ¥2,012 million in “Securities” due to the reclassification from investment securities,¥1,085 million in “Trading products,” and ¥289 million in “Short-term guarantee deposits,” which werepartially offset by decreases of ¥1,715 million in “Cash segregated as deposits,” ¥1,090 million in “Margintransaction assets,” and ¥637 million in “Cash paid for offering.”(ii) Non-current assets
At the end of the period under review, “Non-current assets” amounted to ¥13,054 million, a decrease of¥2,690 million from the end of the previous fiscal year. This was mainly attributable to decreases of ¥3,057
million in “Investment securities” and ¥178 million in “Long-term guarantee deposits,” which were partially
offset by an increase of ¥593 million in “Property, plant and equipment.”(iii) Current liabilities
A At the end of the period under review, “Current liabilities” amounted to ¥24,386 million, an increase of¥3,996 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥2,253
million in “Borrowings secured by securities,” ¥1,762 million in “Deposits received,” and ¥800 million in“Short-term borrowings” due to the reclassification from long-term borrowings, which were partially offset
by decreases of ¥328 million in “Provision for bonuses,” ¥289 million in “Guarantee deposits received,” and¥284 million in “Provision for share awards for employees.”-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 ¥3,863 million, a decrease of ¥1,186 million from the end of the previous fiscal
year. This was mainly attributable to decreases of ¥800 million in “Long-term borrowings” due to thereclassification to short-term borrowings and ¥375 million in “Deferred tax liabilities,” which were partially
offset by an increase of ¥65 million of “Provision for share awards for employees.”(v) Net assets
At the end of the period under review, “Net assets” amounted to ¥38,790 million, a decrease of ¥281 million
from the end of the previous fiscal year. This was mainly attributable to decreases of ¥575 million in“Valuation difference on available-for-sale securities,” ¥520 million in “Dividends of surplus,” and ¥69
million in “Acquisition of treasury shares,” which were partially offset by increases of ¥621 million in“Profit” and ¥262 million in “Disposal of treasury shares” resulting from the distribution of treasury sharesto all employees in accordance with share-based remuneration plan for employees upon the completion of
The Fifth Mid-term Management Plan.”(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 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. Although there are still concerns aboutvariants, more people have been vaccinated, and we have taken measures to prevent the suspension of criticaloperations by enabling workers at branch offices to conduct sales work from home using cell phones and tablets,and establishing a system at the Customer Center so it can cover the work of offices where COVID-19 cluster was
confirmed.

-4-

2. Quarterly non-consolidated financial statements and significant notes(1) Quarterly non-consolidated balance sheets(Millions of yen)
Current quarter(As of December 31, 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
Securities
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-5-

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

28,003
11,730
1,710
1,710
0
6
7,318
7,281

118

37

1,736
689
–
–
1,104
48,766

1,098
978
267
2,012
858
53,985

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

3,933
1,914
2,019
284
8,836
8,139
666
47
(17)
13,05467,040(Millions of yen)
Current quarter(As of December 31, 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

754
615

318

138

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

3,344
3,344
16,146
336
2,750
–
207
5
–

2

–

13
605
20,390159
682
24,386

800
1,485
2,202
–

–
1,110
2,166
65

9

14

397
52

337
66

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

4,947

3,761

101

101

Total reserves under special laws
Total liabilities

101
25,439101
28,25012,272

12,272

4,294
1,969
6,264

4,294
1,969
6,264

17,778
7,247
10,531
17,778(1,635)34,68017,879
7,247
10,631
17,879(1,442)
34,9744,391
4,391
39,07164,511

3,816
3,816
38,79067,040Net 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-6-

(2) Quarterly non-consolidated statements of income
For the nine months ended December 31, 2022
(Millions of yen)
For the nine months ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)

For the nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 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 income:Gain on sale of investment securities
Total extraordinary income
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

-7-

9,674
4,529

7,216
2,847

64

22

2,278

1,738

2,801
1,083
159
18
10,93640
10,896

2,607
1,003
146
19
8,386
42
8,343

830
5,230
1,167
1,352
303
175
147
9,207
1,688

720
4,722
1,164
1,281
344
157
175
8,565
(221)

266
128
395

285
147
432

12
12
2,072

1
1
209

–
–

738
738

–

0

5
–
5
2,066
519
98
617
1,448

–
199
199
748
16
110
127
621

(3)

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.

-8-

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 nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
4,529[4,492][36]

For the nine months ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
2,847[2,813]
[34]

64

22

34.6

[37]
[27]

[6]
[15]

18.3
56.8

2,278

1,738

76.3

2,801
9,674

2,607
7,216

93.1
74.6

For the nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
4,538
28
5,087
20
9,674

For the nine months ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
2,826
16
4,344
28
7,216

For the nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
826
257
[149]
[107]
1,083

For the nine months ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
771
231
[121]
[110]
1,003

(ii) Commission by product

Stocks
Bonds
Beneficiary certificates
Other
Total

62.9
62.6
93.7

(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 (%)
62.3
58.7
85.4
137.4
74.6
(Millions of yen)

-9-Year-on-yearchange (%)
93.3
90.1
81.4
102.1
92.6

(3) Stock trading volume (excluding futures trading)

Total:
Brokerage
Dealing
Brokerage (%)
Exchange participation share (%)
Brokerage commission per stock on clienttransaction (yen)For the nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
NumberAmountof shares
339
793,126[336][726,892][3][66,234]
99.1
91.6
0.05
0.05

(Millions of shares, Millions of yen)
For the nine months ended
December 31, 2022
Year-on-year change (%)(From April 1, 2022
to December 31, 2022)
NumberNumberAmountAmountof sharesof shares
299
597,905
88.1
75.4
[295]
[540,976][87.7][74.4][4][56,928][126.4][86.0]
98.7
90.5
0.04
0.04
–

13.35

9.53

(4) Dealing volume of underwriting, offering and secondary distribution
For the nine months ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)(Thousands of shares, Millions of yen)
For the nine months ended
December 31, 2022
Year-on-year change (%)(From April 1, 2022
to December 31, 2022)

Underwriting:Stock (Number of shares)
1,884
167
8.9
Stock (Amount)
2,083
179
8.6
Bond (Face value)
2,150
1,650
76.7
Beneficiary certificates (Amount)–––
Commercial paper & foreign–––
securities (Face value)
Offering and secondary distribution
Stock (Number of shares)
1,754
163
9.3
Stock (Amount)
1,793
153
8.6
Bond (Face value)
2,020
1,649
81.7
Beneficiary certificates (Amount)
279,049
237,742
85.2
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 December 31, 2022)
34,28934,974(A)
Valuation difference on available-forsale securities
Reserve for financial instruments
transaction liabilities
Total
(B)
(C)
(D)

4,391

3,816

101

101

4,493

3,918

5,375

5,722

33,40633,169Market risk
1,359
1,368
Counterparty risk
432
326
Risk items
Basic risk
3,011
2,898
Total
(E)
4,803
4,593
Capital adequacy ratio (%)(D) / (E) × 100
695.4
722.0
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.

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

Current fiscal year

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, 2022 Sep. 30, 2022)

3rd quarter(Oct. 1, 2022 Dec. 31, 2022)

Commission received

3,263

2,442

2,322

2,581

2,311

Net trading income

438

248

292

466

244

Financial revenue

52

48

44

49

52

Other

6

6

6

6

6

3,760

2,746

2,666

3,104

2,615

Operating revenue:

Total operating revenue

12

12

12

14

14

3,748

2,734

2,653

3,089

2,600

265

250

228

251

240

Personnel expenses

1,734

1,546

1,549

1,649

1,523

Real estate expenses

395

408

407

368

389

Office expenses

459

457

462

407

411

Depreciation

122

137

112

113

117

Taxes and dues

49

39

66

46

44

44

58

46

66

61

3,072

2,899

2,874

2,902

2,788

676

(165)

(221)

186

(187)

146

56

219

53

160

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

Other
Total selling, general and administrative
expenses
Operating profit (loss)
Non-operating income
Non-operating expenses

1

1

2

(2)

1

Ordinary profit (loss)

821

(110)

(4)

242

(28)

Gain on sales of investment securities

–

–

–

–

738

Total extraordinary income

–

–

–

–

738

–

–

0

0

(0)

Extraordinary income:Extraordinary losses:
Provision of reserve for financial
instruments transaction liabilities
Head office relocation expenses

–

–

–

56

143

Total extraordinary losses

–

–

0

56

143

Profit (loss) before income taxes

821

(110)

(4)

186

566

Income taxes - current

155

56

6

5

4

Income taxes - deferred

129

(108)

(53)

53

110

Total income taxes

284

(51)

(47)

59

114

Profit (loss)

537

(58)

42

127

451

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