INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
1st Quarter Fiscal Year ends Mar. 2017

Invast Securities Co., Ltd.

Financial Highlights for the Fiscal Year Ended March 2017

Consolidatedresults

OTC FX• Operating income 924 million yen (year-ago period
969 million yen, 95.3%)• Ordinary income
71 million yen （Ditto
90 million yen, 78.4%）• Net income
52 million yen （Ditto
28 million yen, 182.6%）

Triauto FX and foreign subsidiaries marked increases in revenue and profit due to a rise in
trading volume; Trading volume of ST24 and Click 365 decreased; Decrease in revenue andprofit on a consolidated basis due to prior investment in Triauto ETF.

• Operating revenues• Segment profit or loss

515 million yen （Ditto
75 million yen （Ditto

587 million yen, 87.9％）
120 million yen, 62.4％）• Operating revenues• Segment profit or loss

251 million yen （Ditto
283 million yen、 88.8％）
41 million yen （Ditto
44 million yen, 92.2%）

Narrower spread caused the increase in trading volume for Triauto FX, but trading volumeof ST 24 and FX 24 declined due to the low-volatility market.

Exchange FX

Trading volume decreased due to the market slump in April and May

Overseas
Financial Service• Operating revenues
144million yen （Ditto• Segment profit or loss
10 million yen （Ditto

89 million yen, 160.6%）-69 million yen,-％）Increased trading volume, revenue and profit due to increase in new corporate customers,
achieved constant surplus on a single month basis, and quarterly surplus.

Others• Operating revenues• Segment profit or loss

15 million yen （Ditto-52 million yen （Ditto

19 million yen,
1.7 million yen,78.5％）－％）

Deficit due to prior investment in advertising cost for Triauto ETF, etc.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved* In brackets are year-ago period performances and year-to-year comparison.

2

Financial Highlights (Consolidated)

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Summary of Financial Results 1Q FY ends Mar. 2017
（ Millions of yen ）1Q FY 2016

Year-on-year change

1Q FY 2017

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Commissions earned(exchange FX, etc.)

889

969

783

924

88.0%

95.3%

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

247

249

208

217

84.6%

87.0%

Selling, general andadministrative expenses

537

608

491

617

91.4%

101.4%

Operating income

722

872

718

848

99.4%

97.3%

Ordinary income

167

97

64

75

38.5%

77.2%

Extraordinary income/loss

167

90

66

71

39.3%

78.4%

--66-％

-％

106

28

47

52

45.0％

182.6%

Operating revenues

Net income
Operating revenues

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved4EBITDA (Consolidated)
FY ended March 2014
[Consolidated]

FY ended March 2016
[Consolidated]

FY ended March 2015
[Consolidated]

FY ended March 2017
[Consolidated]

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

Net income
before taxes

471

49

3,528

6

47

413

277

177

90

124-71-374

77

Extraordinary
income/loss

24-0

3,635

132

542

470

9-33---0-512

6Interest
expense-------------

Depreciation

91

93

102

98

111

114

107

93

89

88

88

86

88

EBITDA

538

143-4-26-383

57

375

304

180

212

17

224

159

2Ｑ

3Ｑ4Ｑ

（million yen）
600

Remaining positive for the lastconsecutive 8 quarters

4002000-200

Note:EBITDA was calculated by the formula-400
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY ended March 2014 FY ended March 2015 FY ended March 2016 FY endedMarch2017

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reservedof:Net income before taxes – extraordinary
income/loss + Interest expense + Depreciation= EBITDA. This represents an income metricthat illustrates what level of cash flow wasgenerated by capital including borrowed capital
5Changes in selling, general and administrative
expenses [consolidated]（million yen）

FY ended March 2016

1,000

１Q

800
600
400
200

２Q

３Q

４Q

FY ended March 2016

１Q

２Q

３Q

4Q

Total

107

117

150

110

485

Exchange market
association andother such
expenses

102

114

91

115

423

Real estate
related expenses

273

281

249

257

1,061

Labor costs

236

252

237

235

961

Depreciation costs

89

88

88

86

352

Others

63

36

31

56

187

Total

872

890

849

862

3,474

FY ended March 2017

４Q

FY ended March 2017

３Q

Advertisingexpenses0１Q

２Q

１Q

２Q

３Q

4Q

Total

Advertisingexpenses

112

112

100

100

Exchange market association and other such expenses

Exchange market
association andother suchexpenses

Real estate related expenses

Real estate
related expenses

270

270

Labor costs

Labor costs

233

233

Depreciation costs

Depreciation
costs

88

88

Others

44

44

Total

848

848

Advertising expenses

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

6Status of assets and liabilities [Consolidated]（million yen）
100,000

Assets（million yen）

96,275 million yen

80,00060,000

60,00040,00040,00020,00020,00000
FY 2014 FY 2015 FY 2016 FY 2017
1Q

Intangible fixed assets
Tangible fixed assets
Other current assets
Investments and other assets
Foreign exchange trade accounts receivable
Guarantee deposits
Deposits

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

Liabilities
Net asset

100,000

80,000Liabilities
85,700 million yen
10,574 million yen

FY 2014 FY 2015 FY 2016 FY 2017

1Q
Net assets
Reserves under special laws
Fixed liabilities
Other current liabilities
Foreign exchange trade accounts payable
Deposits received

7

Total deposited margin(Hundreds of millions of yen)

The deposit margin decreased due to stronger yen and aloss-cut increase as a result of the referendum in U.K.

700

600

500
JanMaySep2014

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

Jan
2015

May

Sep

JanMay2016

8INVAST FINANCIAL SERVICES PTY LTD.

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

9Highlights of the Account Settlement
“Pure prime" launched in February (enhanced-liquidity business for financial businesscorporations). The campaign was successful and the customer base expanded.

Investment banks have canceled their prime services due to the Basel Capital Accord,
which allowed the opportunity to provide to brokers and small and medium size hedge

funds around the world.


Trading volume in the January-March period was about 3 times more than the year
before (323%).

The total in the January-June period marks a healthy increase of 189% from the year

before.
Factors that slowed down trading volume growth in the April-June period: Trading volume decreased due to the volatility of stock market.
 Trading volume decreased due to careful risk management in preparation for thereferendum in U.K.

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

10Grow the overseas financial business:IFS4500

Balance of deposited margin

4000

Net operating revenue(10,000 Australian dollars)
120

100
3500
3000

80

2500
60
2000
1500

40

1000
20
500
001234567

89 10 11 12 1

2014

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

2345672015

89 10 11 12 1234562016

11Measures for Returning Profits to Stockholders

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

12Dividend Policy Dividend policy Dividends twice a year:interim and year-end dividends
 Consolidated dividend payout ratio of 30% orConsolidated dividend on equity ratio (DOE) of 4% (annually)

 Actual result and estimation for the year ending March 2017
 Interim dividend

36yen (actual result) Year-end dividend

36 yen (estimation)

 Total72 yen (estimation)

 Dividend Yield (estimate)
5.87％*Stock price:calculated with the closing price (1,226 yen) on July 28, 2016Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

13

Business circumstances

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

14

Steps taken in the 1th quarter (from January to March 2017)

Started as the world's first *ETF-specialized margin trading.

Triauto ETF

Like "Triauto FX," automatic trades are available.

Added new feature “Range Trailing”, which enables continuous orders with a target
trading term of 1 year to be prepared with order settings that take less than 5
minutes, causing large increase of AP orders.

Triauto FX

From February to April, "Real trade! Triauto FX Grand Prix” was held. "Manualtraders" and "automatic traders” competed for profit. & loss.

“U.S. dollar/Canadian dollar" was added to available currency pairs. You can choose

ST24

a strategy suitable for the market from all 27 currency pairs.

 Began offering New York Dow Jones transactions from June 27.
Click Stock 365

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved* Survey by our company

15

About ETF
Investment that only 6% of Japanese know
However, the world’s ETF market size
has increased approximately 7 times in the last 10 years.
Will be mainstream in the future

Source: Survey by BlackRock Investment Institute (end of March, 2015) based on data of The Investment Trusts Association, Japan*1 Source: Japan Securities Dealers Association "2015 Opinion Survey Report concerning Securities Investments by Individual Investors”

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved16

For raising the recognition of ETF
Opening of “ETF GateWay”

Click here for details

An exclusive website introducing extensive financial knowledge mainly on ETF.
"Triauto ETF" blog opened

Click here for details

Provides introductions on how to use, as well as stocks, market forecasts, trade status,etc.
Holding "ETF Startup Seminars”

Click here for details

For beginners and those about to start ETF. Held every week in our company’s
demonstration room.
"Triauto ETF" introductory video

Click here for details

Q&A on ETFs, how to use them, and information about stocks for beginners.
ETF GateWay

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved"Triauto ETF" introduction movie17

What is Triauto FX "range trailing”?

 What is a "range trailing”?
A method for using the same settings to place a buy trailing and a sell
trailing across a wide (price) range
 Merits of range trailing You don’t need market outlook on whether to sell or buy.
 Even if a trend goes to one direction, realized profit reduces valuation loss.
 In a range-trading market, the return is larger.
 Margin is calculated on a MAX basis. So, you can trade only with a margin amountfor one-direction.

AP orders (auto-pilot) largely increase
Click here for details

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

18

ST24 "full-auto function" will be released.

 A new feature "full-auto function" automates the switching ofstrategies

By simply selecting conditions from the full-auto function, you can automatically operate andswitch strategies, and execute trades without being worried about when to switch

Our operational test showed the full-auto function improved trade performance as follows:* This is our investment performance in the past and does not warrant any performance result infuture* The release of SysTrade 24 "full-auto function” is being delayed for various reasons.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

19

The total number of "SysTrade 24" accounts
exceeded the 90,000 mark.
(Number ofaccounts)

In May 2016
The total number ofaccounts exceeded the90,000 mark100,000
90,00080,00070,00060,00050,00040,00030,00020,00010,000
0
11月
2011

3月

6月

9月

12月

3月

6月

2012

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

9月

2013

12月

3月

6月

9月

2014

12月

3月

6月

9月

2015

12月

3月

5月

2016

20

Corporate GuidanceInvast Securities Co., Ltd. (as of Jane 30th 2016)■ Company name:

INVAST SECURITIES CO., LTD.
NBF Toranomon Building■ 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:

55[Non-consolidated]
77[Consolidated]■ Licenses■Membership

1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan:

Financial Instruments Business Operators (Type 1/ Type 2), Investment Advisory andAgency BusinessDirector-General of Kanto Local Finance Bureau (Kinsho) No. 26:Tokyo Financial Exchange

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved21