INVAST SECURITIES CO.,LTD.

Financial Highlights(Consolidated)
2nd Quarter, Fiscal Year ended March 31, 2018

Invast Securities Co., Ltd.

Contents

１．Quarterly Financial Results Summary
２．Half term Financial Results Summary
３．Policies on shareholder returns and dividends
４．Mission/Vision and Management Strategies

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2Quarterly Financial Results
Summary （Jul.-Sept. 2017）

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Quarterly Financial Highlights（key points from 2Q results, fiscal year ended March 31, 2018）

Main takeaways from financial results of 2Q FY2018 (Jul-Sept)
989 million yen in operating revenues (+4.9% from 1Q)

•Domestic Financial Service (INV) posted 753 million yen in net operating revenues (+6.0% from 1Q), andsegment profit of 67 million yen (+67.4％ from 1Q)•Overseas Business (Australian subsidiary IFS) posted 230 million yen in net operating revenues (+0.7%from 1Q), and segment profit of 44 million yen (-18.4% from 1Q)➢Trading profit was 790 million yen, +7.2% from 1Q. Performance was strong for over-the-counter FX platform“ST 24” services and for IFS which has built a stable income structure➢Transaction volume for FX market “Click 365” was virtually unchanged from 1Q, and commissions earned
increased 0.6% from 1Q to 147 million yen.

➢We also released Money Hatch, and “Triauto ETF” transaction volume and deposited margin are both steadily
increasing

Sales, general and administrative expenses were 868 million yen (+3.0% from1Q)•Advertising expenses increased (+39.2%) as we ran a campaign concurrently with the launch of “Money Hatch”

112 million yen in operating income (+17.9% from 1Q),
108 million yen in ordinary income (+9.7% from 1Q),
101 million yen in quarterly net income attributable to parent company
shareholders (+8.1% from 1Q)

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4Quarterly Summary
FY 3/17

FY 3/18(Millions of yen)

４Ｑ

Year-onYearchange

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

Operating revenues

924

742

833

1,048

943

989

+4.9％

+33.3％

Commissions earned(exchange FX, etc.)

217

162

180

151

146147

+0.6％

△9.7％

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

617

503

565

829

736

790

+7.2％

+57.1％

Interest income

7556

1113

＋17.3％+135.4％

Other operating
revenues

8270

81

6148

38

△20.7％△45.6％

Financial expenses

0201

48＋84.3％+307.2％

Net operating revenues

924

740

832

1,047

938

981

+4.5％

+32.6％

Selling, general andadministrative expenses

848

866

979

893

843

868

+3.0％

+0.3％

Operating income (loss)

75

△126

△146

154

95112

+17.9％―％

Ordinary income (loss)

71

△128

△150137

98108

+9.7％

―％

Income (loss) before
income taxes

77△128△12876

103

108+5.3％―％

Net income (loss)

52△108△13773

94

101+8.1％―％

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３Ｑ

Changevs
PreviousQuarter5

Quarterly Selling, general and administrative expenses

FY 3/17

FY 18/３(Millions of yen)

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

848

866

979

893

843

868

+3.0％

+0.3％

Trading related expenses

212

245

327

208

177

201

+13.7％△17.9％(Advertising expenses)

(112)

(154)

(223)

(96)

(83)

(116)

+39.2％△24.9％

Personnel expenses233211

227243247

254

+2.6％

+20.0％

Real estate expenses

270282301

307

291

291

+0.1％

+3.1％

(IT system expenses)

(224)

(234)

(246)

(248)

(236)

(231)

△2.2％

△1.1％

696567+17.0％△18.9％

Depreciation expenses

8884

80

80

7880

+1.6％

△4.6％

Tax and public charges

231721302621△17.7％+21.5％

Others1415131715

12△21.4％△19.7％

Clerical expenses

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４Ｑ

Year-onYearchange１Ｑ
Selling, general andadministrative expenses

３Ｑ

Changevs
Previous
Quarter

6Quarterly Segment Summary

FY 3/17

FY 3/18(Millions of yen)

１Ｑ

２Ｑ

３Ｑ

４Ｑ

１Ｑ

２Ｑ

３Ｑ

４Ｑ

Changevs
Previous
QuarterYear-onYearchangeDomestic Financial Service（ＩＮＶ）
Net operating revenues

782

603

655

728

710

753

+6.0％

+24.8％

Segment profit or loss

64△131△174

3140

67+67.4％―％

Overseas Financial Service（ＩＦＳ）
Net operating revenues

144139

177

319

229

230

+0.7％

+65.7％

Segment profit or loss

1052712254

44△18.4％+790.8％

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7Half term Financial Results
Summary （Apr.-Sept. 2017）

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8Consolidated Financial Results Summary(Millions of yen)

FY 3/17２Q

FY 3/18２Q

Year-on-Yearchange

1,666

1,932

+15.9％

379

293△22.8％

1,120

1,527

+36.3％

1325+90.3％

15286△43.4％

212+400.7％

Net operating revenues

1,664

1,919

+15.4％

Selling, general and administrative expenses

1,715

1,712

△0.2％

Operating income (loss)△50207―

Ordinary income (loss)△57207―

Income (loss) before income taxes△50211―

Net income (loss)△55195―

Operating revenues
Commissions earned (exchange FX, etc.)
Trading profit and loss (over-the-counter FX, etc)
Interest income

Other operating revenues
Financial expenses

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9Non-Consolidated Financial Results Summary(Millions of yen)

FY 3/17２Q

FY 3/18２Q

Year-on-Yearchange

1,388

1,477

+6.3％

Commissions earned (exchange FX, etc.)

363241△33.6％

Trading profit and loss (over-the-counter FX, etc)872

1,134+30.1％

112+766.3％

15188△41.7％

212+400.7％

Net operating revenues

1,386

1,464

+5.6％

Selling, general and administrative expenses

1,453

1,356

△6.7％

Operating income (loss)△66107―

Ordinary income (loss)△62115―

Income (loss) before income taxes△56119―Net income (loss)△61103―Operating revenues

Interest income
Other operating revenues
Financial expenses

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10Operating Revenues and Balance of Deposited Margin (Consolidated)

ＩＮＶ(Millions of yen)

Operating Revenues

ＩＦＳ(Millions of yen)72,000

450
400

70,000350
68,000300
250

66,000200
64,000150
100

62,00050
60,0000789101112

ＦY 3/17123456789ＦY 3/18(Notes) 1. The above figures are consolidated with a three-month delay because the consolidated subsidiary company IFSends its financial year on December 31.
2. The operating revenues, etc. of IFS are converted into yen using the monthly average exchange rate.

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

11Major Management Index

FY 3/17

FY 3/18１Ｑ

２Ｑ

３Ｑ

４Ｑ１Ｑ２ＱROE (%)

2.0

△1.1

△2.5

△1.1

3.7

3.8

Operating and ordinarymargins (%)

7.7

△17.4

△18.0

13.1

10.5

11.0

EBITDA (millions of yen)159

△44△70218

177

188

Capital adequacy ratio (%)

1156.11096.51068.2

807.2

760.8

806.4

３Ｑ

４Ｑ

※ROE data have been annualized.
EBITDA was calculated by the formula of: Net income before taxes – extraordinary income/loss + Interest expense + Depreciation = EBITDA.

ＲＯＥ

（％）

Operating and ordinary margins（％）

6.0

20.0

4.0

10.0

2.0
0.0

0.0
-2.0-10.0

-4.0

-20.0

２Ｑ

３Ｑ
17/3

４Ｑ

１Ｑ

２Ｑ
18/3

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３Ｑ

４Ｑ
FY 3/17

１Ｑ

２Ｑ
FY 3/18

12

Policies on Shareholder Returns
and Dividends

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

13

Policies on Shareholder Returns and Dividends◆Dividend policy (Policy effective as of FY3/18)
Invast Securities will pay dividends at either a consolidated dividend payout ratio of 30% ora consolidated dividend on equity ratio (DOE) of 2% (annual), whichever is higher.
◆Dividend status◆Dividends FY3/18
Interim dividend

17yen

Year-end dividend

TBD(yen)200
year-end dividends
Interim dividends
160120195

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18Interim dividends (Yen)

0.0

0.0

40.0

36.0

17.0

Year-end dividends (Yen)

195.0

71.0

40.0

36.0

TBD

Yearly (Yen)

195.0

71.0

80.0

72.0

Net income(Millions of yen)

3,931

496

△404

△118

Total dividend(Millions of yen)

1,137

416

469

422

Dividend payout ratio(%)

30.2

83.4

――ROE (%)

32.04.0――

DOE (%)

9.6

3.3

4.1

4.0

Dividend yield(%)※

14.8

6.1

5.9

5.5

80
40
403671
4036
170
FY3/14

FY3/15

FY3/16

FY3/17

FY3/18※Calculated using the closing price at the end of each fiscal year

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14

Mission/Vision andManagement StrategyCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

15

Mission / Vision
Mission Why we do business
Making the world a better place
To make the world a better place by providing people all across the globe with financialsolutions that enable happier lives.
The “better place” we envisage is a world where people who work hard can become wealthy, a good society inwhich talented and motivated students do not need to abandon options due to financial reasons, and a society
in which anyone can build assets to become happy.
Our mission is to create solutions that resolve financial issues in the life planning of people across the globe, tosupport people who face challenges, and to help more people grab opportunities to enrich their lives. We wantto contribute to the creation of a better world through the happiness of the people of the world provided fromthe aspect of finance.

Vision What we want to achieve
Creating financial solutions with a global base of 10 million
users by 2025
We aim to create solutions for resolving financial issues starting with asset management and extending to avariety of areas of people’s lives such as raising children, education, gaining employment, getting married andbuilding assets. We want to be a global company with customers across the globe in which talented staff
gathered from around the world fulfill their responsibility as true professionals to discuss, decide upon andexecute our vision day to day. The first step is to create financial solutions with a global base of 10 million users
by 2025.

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16

The Solutions We Provide
Our Proposal
Auto-trading service utilizing technologyST24 Full Auto——
Over 6,000 strategies are constantly monitored, and strongly performing strategies that match theconditions provided are automatically selected.
Each strategy is an automated trading program for algorithmic trading collected from around the globe.

TriAuto FX Range Trailing—

Multiple buy orders and sell orders can be set simultaneously within a predetermined price band (pricerange) to automatically finalize profits and repeat new orders as long as the price fluctuates within thatprice band.

TriAutoETF Auto-trading select—A simple and easy way to engage in ETF trading, recommended for beginners. Once activated, the autopilot function will commence trading based on selected investment themes and trading logic.

Money Hatch (An accumulation-type investment management service)——

Use points earned via credit card use as principal to invest
Automatically accumulate funds for investing by trading FX

Money Hatch
Click here for details

https://moneyhatch.jp
Money Hatch screen
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17

Business Strategy to Achieve Our Vision

STAGE 1: 2017-2019
Boost profitability ofSTAGE 2: 2020-2022
Continuous businessexisting business
Create new businessgrowthSeek group synergies

Investment
periodGrowth
periodSTAGE 3: 2023-2025
Be a global company with 10million users worldwide

Reap therewards

Business Strategy (Stage 1: 2017-2019)(1) Boost profitability of existing business・Strengthen capability to deliver our own unique value-added services(automated trade solutions utilizing technology)
・Prioritize investments in high-profitability businesses with growth potential
・Cost structure improvements such as integrating systems and doing production in-house(2) Create new business・Enter new business domains, create second and third main revenue sources after FX・Seek out businesses that focus on solutions involving people’s money (school loan repayment issues)
・M&A, business partnerships, and other arrangements through VC fund investments(3) Other・Build our corporate brand・Bring in top talent that can fuel our global expansion, and strengthen our organizational
human resources base

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18Corporate GuidanceInvast Securities Co., Ltd. (as of Sept 30, 2017)■ Company name

： INVAST SECURITIES CO., LTD.

■ Head office： 1-6-21 Nishishinbashi, Minato-ku, Tokyo Japan■ Established： August 10, 1960

■ Paid in capital： 5,965,086,800 yen■ Market listing： JASDAQ (Code: 8709) (*1) Listed on March 6, 2006

■ President： President and CEO Takeshi Kawaji■ Licenses

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

NBF Toranomon Building

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