INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
The Fiscal Year ends Mar 2015

Invast Securities CoCo., LtdLtd.

Financial Highlights for the Fiscal Year Ended March 2015

■ Consolidated ordinary loss of 74 million yen (non-consolidated ordinary loss of 157 million yen)
•In the first half of the fiscal yyear ended March 31,, 2015,, Invast Securities recorded a consolidated operating
pg loss of 552 million yyen,, affected byy
the lackluster foreign market trading conditions, which were due to the low volatility market that persisted from February to late August 2014 as
well as the Company’s prior investment in the TriAuto FX service launched in February the same year.
Foreign exchange market activities picked up from September 2014 onwards, allowing operating revenue to rise, which led the Company torecord 478 million yen in consolidated operating income for the second half of the year under review, returning to operating profitability on a
non-consolidated basis for the second half.
The outstanding balance of customer deposit assets at IFS (the Australian subsidiary) grew rapidly.
rapidly Prior investment
investment, however,
however resulted in theoverseas financial business segment posting an operating loss of 242 million yen for the fiscal year ended March 31, 2015:••

1Ｑ (Apr – Jun 2014) △495 million yen
2Ｑ (Jul – Sept 2014) △57 million yen
3Ｑ (Oct – Dec 2014) 267 million yen
4Ｑ (Jan – Mar 2015) 210 million yen■ A total of 1,070 million yen in extraordinary income was recorded following the sale of certain investment
securities•

Consolidated net income stood at 496 million yen (728 million yen on a non-consolidated basis)■ Shareholder return policy and dividends• Management concluded that the best way to return more profits to shareholders would be to curb excessive internal reserves by increasing
shareholder dividends, achieving reduced taxation on specified family company internal reserves.
• Reflecting the above-mentioned conclusion, the Company is now considering revising its dividend policy, which aims to consistently return
profits to shareholders based on a consolidated payout ratio of around 30%.
• The Company plans to pay a per-share dividend of 71 yen (payout ratio of 83.4%) for the fiscal year under review.

■ Accepted the transfer of deposited margins totaling approx. 2,800 million yen from Rakuten Bank, Ltd. inNovember 2014
The balance of deposited margins increased in the fiscal year under review as the Company accepted the transfer of customer accounts from Rakuten
Bank, LtdBank
Ltd. owing to the termination of its “ClickClick 365”
365 service.
service

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Summary of Financial Results for the Fiscal Year Ended March 2015
Financial highlights
The term ended March 2013
(April 1, 2013 to March 31, 2014)

The term ended March 2013
(April 1, 2014 to March 31, 2015)

Non-consolidated

Consolidated

4,165

4,213

3,174

3,474

76.2％

82.5％

Commissions earned (exchange FX, etc.)

1,339

1,339

864

863

64.5％

64.5％

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

2,578

2,620

1,862

2,140

72.2％

81.7％

3,702

4,018

3,051

3,594

82.4％

89.4％

Operating income (-ditto-)

461

193

122

△119－

－

Ordinary income (-ditto-)

544

264

157

△74－

－

Extraordinary income/loss (-ditto-)

3,791

3,791

989

989

26.1％

26.1％

Net income (-ditto-)( ditto )

4,212

3,931

728

496

17.3％

12.6％

Operating revenues (in millions of yen)

Selling, general and administrative expenses (ditto-)

March 31, 2014
Non-consolidated

Consolidated

Non-consolidated

Consolidated

Year-on-year change

December 31, 2014
Non-consolidated

Consolidated

N t assets
Nett (in(i millionsillioff yen))

13 532
13,53213 23913,23912 411
12,411

11 903
11,903

Net assets per share (yen)2,314.52

2,264.28

2,114.86

2,028.40

74,64575,39568,812

69,734

Margins received (in millions of yen)

Non-consolidated

Consolidated

Year-on-year change
Non-consolidated

Consolidated

91 7％
91.7％

89 9％
89.9％

－－92.2％

92.5%* The Company recorded a 1,051 million yen in extraordinary income on the sale of investment securities as it sold part of its investment securities
holdings in the second quarter under review.
* The financial closing date of IFS is December 31, causing its financial results to become incorporated into Invast Securities’ consolidated financial
results with a time lag of three months. Hence, the consolidated financial results for the second quarter of the fiscal year ending March 2015 aredesigned to reflect IFS’s financial results for the period from January to December 2014.

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2

Operating Revenue
Operating revenue for the fiscal year ended March 2015 stood at 3,474 million yen.
Net operating revenue in the overseas financial business segment (IFS) grew steadily during the year under review, amounting to 311 million yen(649.9% compared to the previous year).
As foreign exchange market volatility remained low during the first quarter of the fiscal year under review, operating revenue declined significantly forthe year. However, in the third and fourth quarters, operating revenue recovered to 1,123 million yen (134.8% compared to the previous year) and 1,130
million yen (124.4% compared to the previous year), respectively.
(Milli(Millionsoff yen))

The overseas financial business segment

1,600

Exchange FX trading

FY ended March 2014 [Consolidated] (Millions of yen)
Term ended March 2014

Over-the-counter FX trading
1Q

Other

1,400
1,2001,0008006002Q3Q

4Q

Total

Exchange FX trading

538279248323

1,390Over-the-counter FXtrading
OtherThe overseas financial
business segment
Total

894707572

530

2,703

431091173--44347

1,476

995

833

908

4,213

FY ended March 2015 [Consolidated] (Millions of yen)
Term ended March 2015

400

1Q

20001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY ended Mar2013

FY ended Mar
2014

FY ended Mar
2015

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2Q

3Q

4Q

Total

Exchange FX trading185247432

312

1,177

Over-the-counter FX
trading
Other
The overseas financial
business segment
Total

282

398

581

689

1,950

8101803626

6492

129

311502

719

1,123

1,130

3,474
3

Earnings metrics
ＥＢＩＴＤＡ(Millions of yen)

FY ended March 2012
[Non-consolidated]

FY ended March 2013
[Non-consolidated]

FY ended March 2014
[Consolidated]

FY ended March 2015
[Consolidated]

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

Net income before taxes

176

79-18-45

100

Extraordinary income/loss

80-1-0Interest expense

000Depreciation

5460

EBITDA

222

139

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

0

158

389

471

49 3,528

647

413

277

177

2300-1324-0 3,635

132

542

470

9-33

0000000000000

66

70

69

69

76

93

91

93

102

98

111

114

107

93

48

24

146

69

235

497

538

143-4-26 -383

57

375

304

600
EBITDA
400

Note: EBITDA was calculated by the formula of: Net
income before taxes – extraordinary income/loss +200

Interest expense + Depreciation = EBITDA. This

0represents an income metric that illustrates what levelof cash flow was ggenerated byy capital
pincluding
g-200

borrowed capital-400-600
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY ended Mar FY ended Mar FY ended Mar FY ended Mar FY ended Mar2011
2012
2013
2014
2015
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4

Total amount of deposited margin
The balance of deposited margin for “Click 365,” the exchange-traded foreign exchange margin contract service business, increasedby approx. 2,800 million yen for the fiscal year ended March 2015 as the Company accepted the transfer of customer accounts fromRakuten Bank, Ltd. in November 2014.
The balance of deposited margin in the overseas financial business segment (IFS):
December 31, 2014 AUD10,930,000 Æ March 31, 2015 AUD17,850,000(Millions of yen)
90,00080,000The overseas financial business segment
FX24/ST24/TriAuto FX
Click365

FY ended March 2014 [Consolidated] (Millions of yen)
1Q

2Q

3Q

4Q

Click 365

58,74358,31457,372

59,719

FX24/ST24/TriAuto FX

17,43917,133

15,04014,926The overseas financial
business segment--

48750

76,18375,44872,46175,39570,00060,00050,000Total

40,000FY ended March 2015 [Consolidated] (Millions of yen)
30,000

1Q

2Q

3Q

4Q

20,000

Click 365

58,94257,51457,862

53,973

10,000FX24/ST24/TriAuto FX

15,051

13,97414,14014,6890

The overseas financial
business segment

834

1,028

1,146

1,072

74,828,72,517,

73,149,69,734,1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY ended Mar
2013

FY ended Mar2014

FY ended Mar2015

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Total

5Our Future Initiatives

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6

The Mid-Term Business Plan for the period from FY ending March 2016
to FY ending March 2020
 Aiming to become an integrated global online financial services firmz Grow our foreign exchange trading service business in Japan
1.

Grow our foreign exchange (FX) trading service and derivative businesses, securing stable earning capability2.

Grow our over-the-counter FX trading service business, focusing on the “TriAuto” FX service
Continue to develop functions and improve convenience while providing a 1,000-currency unit and narrower spreadt di ffeatures
tradingt
Leverage our capital and business partnership and joint development with Tradency Inc. Æ “New ST24” to pursue
technological innovation

Build a platform to generate 5 billion yen in annual operating revenue from the FX trading service businessz Grow the overseas financial business
1.
2.
3
3.
4.

Achieve stable profitability for IFS as early as possible and build a platform for the firm to generate 3.6 billion
yen in annual revenue
Have IFS shift from a retail-centric to wholesale-centric business model in a business strategy migration move
M k IFS construct
Maket tabbusinessiportfolio
tf li bby expanding
di itits liliquidity
idit provisioni i service
i andd iinstitutional
tit til iinvestortservice businesses
Have IFS expand the provision of the Direct Market Access Contract for Difference (DMACFD) trading servicez Successfully penetrate new financial service businesses
1.
2.
3.

Expand horizontally from the FX trading service to other financial products Æ Re-enter the securities-relatedmarket, DMACFD trading service, ETF and others
Keywords: Online, financial and global
Within the next five years, aim to become an organization that generates annual operating revenue comparable
to that of the FX trading serservice
ice from its ne
new financial serserviceice bbusinesses
sinesses

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Grow the overseas financial business: IFS (1)Highlights
 Summary:
IFS’ss net operating revenue for the fiscal year ended December 31
IFS31, 2014 lacked stability
stability, since most depended heavily oncertain big corporate customers. In response, IFS has been continuing its new customer prospecting efforts while striving to
expand its customer deposit assets through the launch of the DMACFD trading service. These initiatives have spawned
improvements for the firm, paving the way for stable growth in coming years by attaining greater diversification of revenue
sources and increased customer deposit assets
assets.
 Business strategy
IFS will migrate business strategy by shifting from the retail investor FX trading service-centric business model to a BtoB
trading service
service-centric
centric business model; providing a wide range of derivatives financial services to corporate customers.
customers
 The liquidity provision service business: A type of fee-earning business which involves transmitting price information toother brokers
 An organizational realignment, primarily focused on providing service offerings dedicated to money managers andcorporate investors
 Entry into new businesses
Entry into the Direct Market Access Contract for Difference (DMACFD) trading service business Launched
La nched the DMACFD trading serservice
ice in December 2014
 Reinforced sales activities that chiefly target hedge fund and corporate investor customers as the main targetsegments⇒ IFS’s overall customer deposit assets expanded by approx. 60% in four months following the launch of its DMACFD
t di service
tradingi bbusiness
iCopyright © INVAST SECURITIES CO.,LTD. All Rights Reserved8Grow the overseas financial business: IFS (2)Balance of customer deposit assets(in tens of thousands of Australian dollars)
1,800

Dec 2014
Launched the DMACFD
trading service businessNet operating revenue(in tens of thousands ofAustralian dollars) 120

Balance of deposited margin (in tens of thousands of Australian dollars)
預り証拠金残高（万豪ドル）

1,600
Net operating revenue (in tens of thousands of Australian dollars)
営業収益（万豪ドル）

100

Approx. 60%
gain

1,400

80

1,200
60

1,000

800

40

600
20
400
02000(20)
JanFebMarAprMayJunJul
2014

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Aug

SepOctNovDec

JanFebMar2015

9Grow the overseas financial business: IFS (3)Achieve stable profitability Æ Initiatives toward a platform for generating annual net operating
revenue equivalenti l t tto 3
3.6
6 billibillion yen
 IFS to concentrate its business resources on the BtoB business1. Principal target customer segments: Overseas financial brokers, hedge funds, money managers and similar
2. Realign the organization into one facilitating the provision of corporate sales, corporate customer support andsophisticated financial services

 IFS to further expand its DMACFD business1. Increase the share gain of the DMACFD market in Oceania
2. Form a sales team comprising professionals with DMACFD business experience as a unit targeting institutional
investors
3. Hire high-quality professionals equipped with a corporate business career background IFS to expand its liquidity provision service business1. Prospect new customers and expand the liquidity provision service business that targets overseas FX trading and CFD
trading service brokers
2 Set up2.
p a dedicated corporate sales team

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10Entry into new financial service businesses

Explore the prospect of entering new financial service businesses under the theme of“online, financial and global” businesses
 Develop investment projects through investment business partnerships
1. Ass a ggrowtho t busbusiness,ess, which,c , despite
desp te growthg o t potential,
pote t a , iss outs
outsidede tthee scope oof Invast
ast Secu
Securities’t es eexisting
st g cocoreebusinesses, we will invest in such business through an investment business partnership scheduled to be formed in thecoming weeks.
2. Any investment in a growth business within the scope of the Company’s core businesses will be made directly by theparent, in principle.

 Aggressive M&A activities
1. Penetrate new financial businesses through M&A deals
2. Strengthen existing businesses through M&A activities

 Maximize synergistic effects to be achieved through the capital and business partnership with Tradency Inc.
1. Develop new financial businesses, based on Tradency Inc.’s technological development capabilities
2. Bolster existing businesses, based on Tradency Inc.’s technological development capabilities

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Corporate GuidanceInvast Securities Co., Ltd. (as of March 31, 2015)■ Company name:■ Head office:■ Established:

August 10, 1960

■ Paid in capital:

5,965,080,000 yen■ Market listing:

JASDAQ (Code: 8709) (*1) Listed on March 6, 2006

■ President:

President and CEO Takeshi Kawaji■ Employees
E l:

51 [Non[Non-consolidated]consolidated]
66 [Consolidated]■ Licenses:

Financial Instruments Business Operators (Type 1/ Type 2)
Director-General of Kanto Local Finance Bureau (Kinsho) No. 26■ Membership:Tokyo Financial Exchange

INVAST SECURITIES CO., LTD.
NBF Toranomon Building
1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan

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