INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
3rd Quarter of the Fiscal Year ends Mar 2014

Invast Securities Co., Ltd.

Financial Highlights■The prior investments in an overseas subsidiary lowered consolidated financial results, but cumulative operating andordinary incomes exceeded those for the same period of the previous year on both an unconsolidated and consolidatedbasis.
■Starting the third quarter of the current consolidated fiscal year, Invast Financial Services Pty Ltd. (IFS), a wholly owned
subsidiary established in February 2013, was included in the separate “overseas financial business” segment.
■An extraordinary income of 3.68 billion yen was posted due to the sale of part of the listed investment securities.
■Profits and losses by segment are as follows:
Exchange FX trading:

263 million yen (Click 365)

Over-the-counter FX trading

229 million yen (ST24 and FX24)

Overseas financial business-185 million yen (Overseas subsidiary IFS)■The deposited margins for the overseas subsidiary IFS were 48 million yen (as of the end of September 2013).
The deposited margins grew to approx. 680 million yen (approx. 7.5 million Australian dollars) by December 31, 2013.
■Effective expansion of the business foundation due to corporate absorption and split
Invast Securities entered into an agreement with CyberAgent FX, Inc. to take over the Click 365 business after the latterspun it off. The company expects to see the number of its accounts grow by approx. 100,000 and the amount of its margins
by approx. four billion yen. (The agreement is expected to take effect on March 2, 2014)
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved1

Summary of Financial Results 3Q FY ends Mar 2014
[Overview of Financial Results]
First three quarters of the term ended March 2013
(April 1 to December 31, 2012)
Unconsolidated

First three quarters of the term ended March 2014
(April 1 to December 31, 2013)
Unconsolidated

Year-on-year change

Consolidated

Operating revenues (in millions of yen)

2,455

3,300

134.4％

3,304

Commissions earned (exchange FX, etc.)

694

1,112

160.1％

1,112

Trading profit and loss (over-the-counter FX)

1,741

2,091

120.1％

2,094

2,241

2,795124.7％

2,985

Operating income (-ditto-)

208

503

241.7％

317

Ordinary income (-ditto-)

235

580

246.0％

389

Extraordinary income/loss (-ditto-)

23

3,659

15,368.8％

3,704

Net income (-ditto-)

246

3,892

1,579.6％

3,702

Selling, general, and administrative expenses (-ditto-)

At the end of the term ended March 2013
Unconsolidated

Net assets (in millions of yen)
Net assets per share (yen)Margins received (in millions of yen)

11,384
1,813.27
77,693At the end of 3Q of the term ended March 2014
Quarter-on-quarter
UnconsolidatedConsolidatedchange13,714148.8％
13,5082,241.37
149.5％
2,207.60
72,41288.8％
72,461* During the third quarter of the current consolidated fiscal year, Invast Securities sold part of the investment securities it held and posted 3.68 billion
yen in extraordinary profits on investment securities sold.
* Starting the first quarter of the current consolidated fiscal year, the Company has compiled consolidated quarterly financial statements with Invast
Financial Services Pty Ltd., a wholly owned subsidiary established in Australia in February 2013, as its consolidated subsidiary. In the first
consolidated fiscal year, financial results for the first quarter of the current term are compared to a year earlier only on an unconsolidated basis.
* The closing date for IFS is December 31. The consolidated financial results for the third quarter of the current term were compiled using IFS’s
financial results for the quarter ended September 30, 2013.
* The IFS-related selling, general, and administrative expenses for the consolidated first three quarters of the current term include expenses associatedwith the launch of the Australian business, which are the amount of 190 million yen (The business started in July 2013).
* On April 1, 2013, Invast Securities split its common shares at a rate of 1:100, and net assets per share are calculated on the assumption that theshare split was performed at the beginning of the previous business year.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2

Operating Revenue
Operating revenues for the third quarter of the term ended March 2014 were 3,304 million yen.
Profits from over-the-counter FX trading (ST24 and FX24) were 2,094 million yen.
Commissions earned from exchange FX trading (Click 365) were 979 million yen.
(Millions of Yen)
1,600
1,400

(Millions of Yen)FY ended Mar 2013 [Non-consolidated]

Overseas financial business
海外金融事業
Exchange FX trading
取引所ＦＸ取引Over-the-counter FX trading
店頭ＦＸ取引Other
その他

Term ended March 2013
1Q

1,200
1,000

2Q

3Q

4Q

Total

Exchange FX trading

260

163

238

500

1,163

Over-the-counter FX trading

522

575

642

754

2,496

Other

19802

14753

18899

41
1,297

93
3,753

Total800(Millions of Yen)FY ended Mar 2014 [Consolidated]

Term ended March 2014

600

1Q400
200

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY ended Mar2012

FY ended Mar2013

3Q

4Q

Exchange FX trading

538

279248Over-the-counter FX trading

894

707

572

Other

43

109--

4

1,476

995

833

Overseas financial business

02Q

Total

Total

FY ended Mar2014* During the consolidated first three quarters of the current term, net operating
revenues from overseas financial business for a little less than two months fromlate July (when the business was launched) to September were four million yen.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

3Total amount of deposited margin
The total balance of deposited margins for all businesses was 72,461 million yen.
It consists of 15,040 million yen for over-the-counter FX trading such as FX24 and ST24
and 57,372 million yen for exchange FX trading, Click 365.
(Millions of Yen)

1Q

2Q

3Q

4Q

Click365

41,752

41,661

67,29961,535

FX24/ST24

12,326

14,25914,271

16,158

Total

54,07855,921

81,571

77,69390,000Overseas financial business
海外金融事業FX24/ST24FX24・ST24
Click365

80,00070,000(Millions of Yen)FY ends Mar 2013 [Non-consolidated]

60,000(Millions of Yen)FY ends Mar 2014 [Consolidated]

50,000

1Q

2Q

3Q

Click365

58,74358,31457,372

FX24/ST24

17,43917,133

15,040--48

76,18375,44872,46140,00030,00020,000Overseas financial business

10,000

Total

0
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY ended Mar 2012 FY ended Mar 2013 FY ended Mar 2014

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

4Q* The balance of deposited margins for overseas financial
business (IFS) during the consolidated first three quarters of thecurrent term was 48 million yen (as of the end of September2013).
4

The status of selling, general and administrative expense
Breakdown of selling, general and administrative
expense(Millions of Yen)FY ends Mar 2013 [Non-consolidated](Millions of Yen)

Term ended March 2013

1200
1Q

Trading expenses
Real estate expenses
Personnel costs
Depreciation and amortization
Other

1000

800

2Q

3Q

4Q

Total

Trading expenses

265

266

237

330

1,100

Real estate expenses
Personnel costs240
137254132225175264
195984639Depreciation andamortization

69697693308

FY ends Mar 2014 [Consolidated]
600(Millions of Yen)

Term ended March 2014
1Q

4002000
1Q

2Q

3Q

4Q

FY ended Mar 2012

1Q

2Q

3Q

4Q

FY ended Mar 2013

1Q

2Q

3Q

FY ended Mar2014

Note 1: Trading expenses consisted mainly of fixed-rate exchange commissionand advertising costs
Note 2: Real estate expenses comprised mainly office space rent, IT system
hosting costs and maintenance/operation costs for the trading tools used in eachbusiness segments.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

2Q

3Q

Trading expenses

415

372

340

Real estate expenses

289

275

281

Personnel costs

229

177

205

Depreciation andamortization

91

93

102

4Q

Total

* The selling, general, and administrative expenses for overseas
financial business (IFS) during the consolidated first threequarters of the current term included 190 million yen for initialinvestments associated with the launch of the business (fromFebruary when the business was launched to September) andadvertising and publicity for active promotional campaigns. (TheAustralian business started operation in July 2013).

5

Automated FX Trading “ST24”◆The number of strategies incorporated is over 8,000, the largest in the world.*1◆A smartphone version of MyST24, a support tool developed by Invast Securities independently,
was released in November 2013.
◆The official ST24 trading support website communicates useful information for FX trading.
◆Active promotional campaigns (inserting advertisements in magazines and other media)◆As a result, the number of trading accounts grew, exceeding 60,000 as of January 21, 2014. Thisis the largest among mirror trader providers in Japan. *2* The Mirror Trader, developed by Israel’s Tradency Inc., is the most prominent platform for selective FX system trading, and has been introduced in more than 20countries worldwide.
* Strategies refer to trading programs incorporated into trading platforms.
*1 Among all mirror trader providers (as of November 13, 2013; based on a Tradency survey)*2 Among all mirror trader providers in Japan (as of January 16, 2014; based on a Tradency survey)

Exceeded the total of 60
60,000 accounts(as of Jan. 21, 2014)

70,00060,000

Number of customer accounts
50,00040,00030,00020,00010,000Oct
Nov
DecJanFebMarAprMayJunJulAug
SepOctNov
Dec
JanFebMar
AprMayJunJulAug
Sep
Oct
Nov
Dec
JanFeb02011

2012

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

2013

2014

Invast Securities released the smartphoneversion of MyST24 it developed
independently.
6

Overseas Subsidiary Invast Financial Services (IFS) IFS started to provide services in the fourth week of July 2013.
 During the consolidated first three quarters of the current term, IFS posted 190 million yen in priorinvestment expenses for the period from February to the end of September 2013 and four million yen in
net operating revenues for the period from the fourth week of July to the end of September.

 Deposited margins were 48 million yen as of the end of September 2013.
They grew to approx. 680 million yen (approx. 7.5 million Australian dollars) by the end of December
2013 (as announced in the January 28, 2014 news release), and as they increase, operating revenues
are also rising steadily.

 Invast Securities plans to sell ST24 to overseas customers in 2014 and thereafter and is currently
developing a multilingual trading platform for the system.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

7

Overseas Subsidiary Invast Financial Services (IFS)
Changes in deposited margins for overseas business (IFS)(in Australian dollars)(In Australian dollars)$8,000,000.00$7,000,000.00

The deposited margins
grew substantially because
large corporate clients wereacquired.

$6,000,000.00$5,000,000.00$4,000,000.00

As the deposited margins
grow, operating revenues
are also rising steadily.

$3,000,000.00$2,000,000.00$1,000,000.00
$0.00
7月末
Endof Jul.

8月末
9月末
Endof Aug. Endof Sep.

10月末
Endof Oct.

2013年
2013
End of Sep.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

Endof Nov.
11月末

Endof Dec. Endof Jan.
12月末
1月末

2月末
Endof Feb.

2014年
2014

8ＥＢＩＴＤＡＥＢＩＴＤＡFY ending Mar 2011
[Non-consolidated](Millions of Yen)FY ending Mar 2014
[Consolidated]

FY ending Mar 2013
[Non-consolidated]

1Ｑ

2Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

200-52 -281 -683

176

79-18-45100

80-1-0Net income before taxes

3Ｑ

FY ending Mar 2012
[Non-consolidated]

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

0158

389

471

49 3,528

2300-1324-0 3,635

Extraordinary
income/expense-00

Interest expense

000000000000000

Depreciation

130

132

136

140

5460

66

70

69

69

76

93

9193102

EBITDA330

80 -117

60

222

139

48

24146

69

235

497

538

143-4

1Q

2Q

1Q

2Q

3Q

-28 -603

600
500
400
300
200
100
0-100-200
1Q

2Q

3Q

FY ended Mar 2011

4Q

1Q

2Q

3Q

FY ended Mar 2012

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

4Q

3Q

FY ended Mar 2013

4Q

FY ended Mar 2014

9Corporate GuidanceInvast Securities Co., Ltd. (as of December 31, 2013)■

Company name：

INVAST SECURITIES CO., LTD.

■

Head office：

NBF Toranomon Building
1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan■

Established：

August 10, 1960■

Paid in Capital：

5,965,080,000 JPY■

Market listing：

JASDAQ (Code: 8709) Listed on March 6, 2006■

President：

President and CEO Takeshi Kawaji■

Employees：

58[Non-consolidated]
74[Consolidated]■Licenses：

Financial Instruments Business Operators(Type 1/ Type 2)■Membership：Japan Securities Dealers Association, Tokyo Financial Exchange, Financial Futures
Association of Japan, Japan Investor Protection FundCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved10