INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
1st Quarter Fiscal Year ends Mar 2015

Invast Securities Co., Ltd.

Financial Highlights for the 1st Quarter Fiscal Year Ended March 2015

■Ordinary loss of 495 million yen
Operating revenue declined significantly year on year as foreign exchange market volatility remained low during the quarter under review.
Ordinary income for the quarter under review represented a negative 110.8% of that for the same quarter a year ago, a quarter of favorable foreignexchange market conditions.

■Recorded 545 million yen in extraordinary income on the sale of part of investment securities■The number of customer accounts for “TriAuto,” a new trading service offering, exceeded the10,000 mark in just two and a half months after the service launch
Represented a service lineup expansion as Invast Securities continued to deliver value-added services for customers
Total customer accounts for the TriAuto service have been growing steadily, and stood at 13,548 as of July 24, 2014

■Overseas financial business segment
While the balance of deposited margin for the overseas financial business segment continued to grow, amounting to 921 million yen as of June 30,2014, Invast Securities recorded 115 million yen in loss owing to its prior investment■Passed a resolution for the retirement of shares of treasury stock
The Board of Directors’ meeting held on July 30, 2014 passed a resolution for the retirement of 507,000 shares of the Company’s common treasurystock.
These shares represent 7.9% of the total number of shares outstanding prior to the share retirement, which is scheduled to be implemented on
August 15, 2014.

■Passed a resolution for the acquisition of own shares as treasury stock

The Board of Directors’ meeting held on July 30, 2014 passed a resolution for the acquisition of the Company’s own shares as its treasury stock
Total number of shares to be acquired: 200,000 shares (upper limit) (3.4% of the total number of shares outstanding [excluding treasury stock])
Total value of the shares to be acquired: 300 million yen (upper limit) Share acquisition period: From July 31, 2014 to December 31, 2014

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Summary of Financial Results 1Q FY ends Mar 2015
[Financial highlights]
1Q FY 2014

1Q FY 2015

(from April 1, 2013 to March 31, 2014) (from April 1, 2014 to March 31, 2015)
Non-consolidated

Consolidated

1,476

1,476

476

502

32.3％

34.1％

Commissions earned (exchange FX, etc.)

577

577

112

112

19.6％

19.6％

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

894

894

276

295

30.9％

33.1％

Selling, general and administrative expenses (ditto-)

1,057

1,067

874

1,016

82.7％

95.2％

Operating income (-ditto-)

417

407

△397

△513

△95.2％△126.0％Ordinary income (-ditto-)

457446△375△495△82.2％△110.8％2424545545

2,256.0％

2,243.1％

441

431

109

△924.9％△2.2％

Operating revenues (in millions of yen)

Extraordinary income/loss (-ditto-)
Net income (-ditto-)

March 31, 2014
Non-consolidated

Consolidated

Non-consolidated

Consolidated

Year-on-year change

March 31, 2015
Non-consolidated

Consolidated

Non-consolidated

Consolidated

Year-on-year change
Non-consolidated

Consolidated

Net assets (in millions of yen)

13,532

13,23912,048

11,652

89.0%

87.9%

Net assets per share (yen)2,314.52

2,264.28

2,071.26

2,002.96

89.4%

88.4%

74,64575,39573,99474,828

99.1％

99.2％

Margins received (in millions of yen)

* The Company recorded 525 million yen in extraordinary income on sale of investment securities as it sold part of its investment securities holdingsin the first 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 first quarter of the fiscal year ending March 2015 aredesigned to reflect IFS’s financial results for the period from January to March 2014.

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Operating Revenue
Operating revenue for the first quarter of the fiscal year ending March 2015 stood at 502 million yen.
Trading income in the over-the-counter foreign exchange margin trading service business (ST24, FX24 and TriAuto) amounted to 295 million yen.
Commission received in the exchange-traded foreign exchange margin contract service business (Click 365) totaled 185 million yen.
Net operating revenue of 26 million yen was recorded in the overseas financial business segment (IFS) during the period from January 2014 to March
31, 2014.
Operating revenue for the quarter under review struggled to grow and declined significantly year on year as foreign exchange market volatility remained
low during the quarter in comparison to the same quarter a year ago, a quarter of favorable foreign exchange market conditions (34.1% of the operating
revenue for the year-ago quarter).
(Millions of yen)
1,600

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

1,400
1,200
1,000800

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

Term ended March 2014
1Q2Q

3Q

Total

Exchange FX trading

538

279248323

1,390

Over-the-counter FXtrading
Other
The overseas financial
business segment
Total

894707

572

530

2,703

43

1091173--

44347

1,476

995

833

908

4,213

(Millions of yen)

FY ended March 2015[Consolidated]

600

4Q

Term ended March 2015
1Q

4002000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY ended Mar 2013 FY ended Mar 2014 FY ended
Mar 2015Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

2Q

Exchange FX trading

185

Over-the-counter FXtrading
OtherThe overseas financial
business segment
Total

282

3Q

4Q

Total

826502

3

Total amount of deposited margin
The total balance of deposited margin for all the Company’s business segments amounted to 74,828 million yen for the first quarter of the fiscal year ending March2015.
The balance of deposited margin for “Click 365,” the exchange-traded foreign exchange margin contract service business, amounted to 58,942 million yen.
The balance of deposited margin for the “FX24,” “ST24,” “TriAuto” services and others in the over-the-counter foreign exchange margin trading service business stood at
15,051 million yen .
The balance of deposited margin in the overseas financial business segment (IFS) totaled 817 million yen as of March 31, 2014 and 921 million yen as of June 30, 2014

(Millions of yen)
The overseas financial business segment
90,000FX24/ST24/TriAuto
Click365
80,000FY ended March 2014 [Consolidated] (Millions of yen)
1Q

2Q

3Q

4Q

Click 365

58,74358,31457,372

59,719FX24/ST24/TriAuto

17,43917,133

15,04014,926--48750

76,18375,44872,46175,39570,00060,00050,000The overseas financial
business segment

40,000Total

30,000FY ended March 2015[Consolidated] (Millions of yen)
1Q

20,00010,000
01Q

2Q

3Q

4Q

FY ended Mar 2013

1Q

2Q

3Q

4Q

FY ended Mar 2014

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1Q

2Q

FY ended
Mar 2015

Click 365

58,942

FX24/ST24/TriAuto

15,051The overseas financial
business segment
Total

2Q

3Q

4Q

834
74,8284Launched the new “TriAuto” service
Launched on March 10, 2014 “TriAuto,” a new auto-pilot-based discretionary FX margin trading service (*began to accept account opening
applications from customers, starting from February 15, 2014)
The total number of customer accounts for the TriAuto service exceeded the 10,000 mark in just two and a half months after the service
launch (13,548 as of July 24, 2014)
This is a new type of FX trading service that allows the trader user to decide on his/her trading direction while the auto-pilot automatically does therest of the trading processAn innovative FX trading service offering based on a combination of the advantages of discretionary FX trading and automatic trading services
With the TriAuto service, the user customer does what humans are good at such as predicting of market trend and formulation of strategy.
Meanwhile, the auto-pilot (system) performs what humans are not good at such as entry settlement and risk management◆Well-developed risk management function◆Launched on June 9, 2014 well-awaited new functions: “Quick Shikake” and demo game “BACK TO THE SOBA”
16,000
Number of customer accounts
14,00012,00013,54812,705

Exceeded the 10,000
mark in just two and ahalf months

10,675FebMay

10,000
8,000
6,000
4,000
2,0000MarAprJunJul

2014
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved5Automated FX Trading “ST24”
 The number of strategies incorporated is over 8,000, the largest in the world,*1 supported by a step-by-step addition of new proprietary strategies
 The official ST24 trading support website communicates useful information for FX trading “Salaryman Kintaro” and “ST24” entered into a tie-up. The ZAI FX! portal site is running the “Salaryman Kintaro Kawase Wars” comic series As a result, the number of trading accounts has grown steadily, exceeding 70,000 as of July 25, 2014. This is the largest among mirror trader
providers in Japan.*2◆On the other hand, the foreign exchange market’s volatility has been remaining low, making the trading volume struggle to grow
* 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)

80,000
Number of customer accounts
70,000Exceeded 70,000accounts(as of July 25, 2014)

60,00050,00040,00030,00020,00010,000Oct
Nov
Dec
JanFebMar
AprMayJun
JulAug
Sep
Oct
Nov
Dec
JanFebMar
AprMayJunJulAug
Sep
Oct
Nov
Dec
JanFebMar
AprMayJunJul020112012Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2013

2014
6Overseas subsidiary Invast Financial Services（IFS）
海外事業（ＩＦＳ）預かり証拠⾦推移（豪ドル） IFS is a provider of over-the-counter FX trading services based mainly on the MT4 system, asystem well favored by many investors around the world and on the cTrader trading platform that iswell regarded by professional investors. In addition, IFS delivers the MT4 system-based metal andequity index trading services in the form of over-the-counter CFD trading service offering◆Starting from April 2014, IFS began to offer ST24 trading service to overseas customers
 IFS’s diverse current customer base in Asia consists of customers based in Singapore andMalaysia and that in the eurozone comprises those based in France and Germany
 The balance of deposited margin as of March 31, 2014 stood at an amount equivalent to 817
million yen
The balance grew further at a steady space, and totaled an amount equivalent to 921 million yen asof June 30, 2014
 IFS recorded an amount equivalent to 26 million yen in net operating revenue for the first quarter ofthe fiscal year ending March 2015 (not recorded for the same quarter a year ago)
 IFS conducted a capital increase of A$2 million in April 2014 to make its paid-in capital A$6.46
million in view of its business expansion plan(A$)$12,000,000.00$10,000,000.00$8,000,000.00$6,000,000.00$4,000,000.00$2,000,000.00$0.00
JulAug

Sep

Oct

Nov

DecJan2013

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AprMayJun2014

7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

Net income before taxes

176

79-18-45

100

Extraordinary income/loss

80-1-0Interest expense000

Depreciation

5460

EBITDA

222

139

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

2Ｑ

0

158

389

471

49 3,5286472300-13

24-0 3,635

132

542

0000000000

66

70

69

69

76

93

91

93

102

98

111

48

24

146

69

235

497

538

143-4

3Ｑ

4Ｑ

-26 -383

600
EBITDA

Note: EBITDA was calculated by the formula of: Net400income before taxes – extraordinary income/loss +200

Interest expense + Depreciation = EBITDA. This

0represents an income metric that illustrates what level-200of cash flow was generated by capital including-400

borrowed capital-600
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY ended Mar FY ended Mar FY ended Mar FY ended Mar
2011
2012
2013
2014

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FY endedMar 20158

Corporate GuidanceInvast Securities Co., Ltd. (as of June 30th 2014)■ 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:

56 [Non-consolidated]
77 [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 JapanCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved9