INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
1st Quarter Fiscal Year ends Mar. 2016

Invast Securities Co., Ltd.

Financial Highlights for the 1st Quarter Fiscal Year Ends March 2016

■ Consolidated ordinary income of 90 million yen (compared to a negative 495 million yen for the same quarter a year ago)and non-consolidated ordinary income of 167 million yen (compared to a negative 375 million yen for the same quarter a yearago)— Operating revenues for the quarter under review grew year on year due to the buoyant foreign exchange market trading conditions (the samequarter a year ago witnessed a foreign exchange market marked by historically low volatility)— Selling, general and administrative expenses fell as the Company limited advertising costs (in the same quarter a year ago, it made priorinvestments, involving advertising expenses incurred during the launch of the “TriAuto” FX service)■ Total number of customer accounts for automated FX trading service exceeded the 100,000 mark— The continuous additions of new functions and enhanced convenience of the “TriAuto” FX service boosted the number of customer accounts••••••••

Standard spread for the “TriAuto” FX service was considerably restricted, starting from April 1, 2015
Launched the Second “Real Trade! TriAuto FX Grand Prix” competition
Lowered the mark-up commission rate for the “TriAuto” FX autopilot orders“Shikake Ranking”: Newly added 300 types of “Shikake” trading logic“Shikake Ranking”: Added statuses “rigorously chosen by analysts” as those enabling the trader customer to know trading logics befitting marketconditions
Implemented “Shikake Simulator”
Overhauled “Shikake Ranking” and “Advice Function”: Added statuses targeting high swap levels and greater price volatility“Shikake Ranking”: Implemented trading logic of Ms. Michiko Kawai and Mr. Noriyuki Mizukami, two FX trading professionals■ Consolidated overseas subsidiary IFS achieved significant growth in net operating revenue and balance of deposited
margin---IFS’s business shift from BtoC to BtoB bore fruit, resulting in a considerable growth in net operating revenue for the first quarter of the fiscalyear ending in December 31, 2015 (from January to March 2015) growing markedly, standing at an amount equivalent to 89 million yen(339.1% of net operating revenue for the same quarter a year ago)
Driven by the growth in the liquidity provision service business for overseas financial institution customers, the balance of deposited margin
grew significantly year on year:
AUD18,080,000 as of March 31, 2015 (194.8% of the balance as of March 31, 2014)
AUD30,490,000 as of June 30, 2015 (283.1% of the balance as of June 30, 2014)
IFS’s overall staff size was expanded to approx. 30 as the firm continued to reinforce its corporate sales force; primarily using ex-investmentbankers

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Summary of Financial Results 1Q FY ends Mar. 2016
[Financial highlights]
1Q FY 2015
1Q FY 2016
(from April 1, 2014to June30, 2014) (from April 1, 2015to June30, 2015)

Year-on-year change

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Operating revenues (in millions of yen)

476

502

889

969

186.7％

192.8％

Commissions earned (exchange FX, etc.)

112

112

247

249

218.8％

220.9％

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

276

295

537

608

194.1％

205.7％

Selling, general and administrative expenses(-ditto-)

874

1,016

722

872

82.6％

85.8％

Operating income (-ditto-)

△397

△513

167

97－

－

Ordinary income (-ditto-)

△375

△495

167

90－

－

Extraordinary income/loss (-ditto-)

545

545－－－－Net income (-ditto-)

109

△9106

28

96.7％

－

March 31, 2015
Non-consolidated

Year-on-year change

June 30, 2015

Consolidated Non-consolidated

Consolidated

Non-consolidated

Consolidated

97.6%

96.6%

Net assets (in millions of yen)12,411

11,903

12,108

11,505

Net assets per share (yen)2,114.86

2,028.40

2,063.25

1960.44

68,812

69,73467,71069,093

Margins received (in millions of yen)

－98.4％－99.1％* 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 2016 aredesigned to reflect IFS’s financial results for the period from January to March 2015.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved2Earnings metrics
ＥＢＩＴＤＡ(Millions of yen)

FY ended March 2013
[Non-consolidated]

FY ended March 2014
[Consolidated]

FY ended March 2015
[Consolidated]

FY ended March 2016
[Consolidated]

1Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

2Ｑ

Net income before taxes

1000

158

389

471

49 3,528

647413

277

177

90

Extraordinary income/loss

2300-1324-0 3,635

132542470

9-330Interest expense0000000000000Depreciation

696976939193102

98111

114

10793

89

EBITDA

146

69235

497

538

143-4-26 -383

57375

304

179

3Ｑ

4Ｑ

600
400

Note: EBITDA was calculated by the formula

200of: Net income before taxes – extraordinary0

income/loss + Interest expense +-200

Depreciation = EBITDA. This represents an-400

income metric that illustrates what level of-600

cash flow was generated by capital including
1Q

2Q

3Q

4Q

FY ended Mar2013

1Q

2Q

3Q

4Q

FY ended Mar2014

1Q

2Q

3Q

4Q

FY ended Mar2015

1Q

2Q

borrowed capital

FY endedMar2016Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved

3

Operating Revenue□ Operating revenue for the first quarter of the fiscal year ending March 2016 stood at 969 million yen (192.8% of the operating revenue for the samequarter a year ago).
□ Trading income in over-the-counter foreign exchange margin trading service business (ST24, TriAuto FX and FX24) amounted to 608 million yen(205.7% of the trading income for the same quarter a year ago).
□ Commission received in the exchange-traded foreign exchange margin contract service business (Click 365) totaled 249 million yen (220.9% of thecommission for the same quarter a year ago).
□ Net operating revenue in the overseas financial business segment (IFS) for the period from January 1 to March 31, 2015 came to 89 million yen(339.1% of the net operating revenue for the same quarter a year ago).
⇒ Operating revenue grew significantly in all business segments(Millions of yen)

FY ended March 2015 [Consolidated]
The overseas financial
business segment
Exchange FX trading

1,600
1,400

(Millions of yen)

Term ended March 2015
1Q

2Q

3Q

4Q

Total

Exchange FX trading185247432

312

1,177

1,200

Over-the-counter FXtrading

282398581689

1,950

1,000

Other

Over-the-counter FX trading

81018036800

The overseas financial
business segment

266492129311600

Total

502719

1,123

1,130

3,474

400

FY ended March 2016 [Consolidated](Millions of yen)

Term ended March 2016200
1Q

01Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY ended Mar
2013

FY ended Mar2014

FY ended Mar
2015

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FYendedMar2016

2Q

Exchange FX trading283

Over-the-counter FX
trading

587

Other

19

The overseas financial
business segment

89

Total

969

3Q

4Q

Total

4

Total deposited margin□ The total deposited margin for all the Company’s business segments amounted to 69,093 million yen for the first quarter of the fiscal year ending
March 2016 (a decrease of 7.7% compared to the same quarter a year ago)
□ The balance of the deposited margin for “Click 365,” the exchange-traded foreign exchange margin contract service business, amounted to53,043 million yen (a decrease of 10.0% compared to the same quarter a year ago)
□ The balance of the deposited margin for the “FX24,” “ST24,” “TriAuto” FX services and others in the over-the-counter foreign exchange margin
trading service business stood at 14,391 million yen (a decrease of 4.4% compared to the same quarter a year ago)
□ The balance of the deposited margin in the overseas financial business segment (IFS) totaled 1,658 million yen as of March 31, 2015 (198.8%of the balance as of March 31, 2014)*AUD30,490,000 as of June 30, 2015
(Millions of yen)

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

The overseas financial
business segment
FX24/ST24/TriAuto FX

1Q

2Q

3Q

4Q

Click 365

58,94257,51457,862

53,973

FX24/ST24/TriAuto FX

15,051

13,97414,14014,689The overseas financial
business segment

834

1,028

1,146

1,072

74,82872,517

73,14969,734

Click 365

80,00070,00060,00050,000Total
40,000FY ended March 2015 [Consolidated] (Millions of yen)
30,000

1Q

20,000

Click 365

53,043

10,000FX24/ST24/TriAuto FX

14,3910

The overseas financial
business segment

1,658Total

69,093

1Q

2Q

3Q

4Q

FY ended Mar 2014

1Q

2Q

3Q

4Q

FY ended Mar 2015

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1Q

2Q

FY endedMar 2016

2Q

3Q

4Q

5Highlights for the Fiscal Year ending Mar. 2016

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6Grow the overseas financial business (IFS)
Key points


IFS recorded net operating revenue equivalent to 89 million yen for the first quarter of the fiscal year
ending December 2015 (from January 1 to March 31, 2015), a marked year-on-year increase,standing at 339.1% of that for the same quarter a year ago, thanks to its successful operating strategy
shift from the BtoC-centric FX trading service to a business dedicated to providing BtoB-centriccorporate financial derivatives services

Driven by the growth in the liquidity provision service business and the DMACFD business, thebalance of deposited margins grew significantly year on year:
AUD18,080,000 as of March 31, 2015 (194.8% of the balance as of March 31, 2014)
AUD30,490,000 as of June 30, 2015 (283.1% of the balance as of June 30, 2014)

IFS’s overall staff size was expanded to approx. 30 as the firm continued to reinforce its corporate
sales force by hiring high-quality employees; mainly comprising ex-investment bankers

IFS targets profitability on a non-consolidated basis for the fiscal year ending December 31, 2015

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7Trend of net operating revenue and balance of deposited margin forIFS
Net operating revenue (in tens of thousands of Australian dollars)

Balance of deposited margin (in tens of thousands of Australian dollars)

120

3,500

IFS’s strategy shift to BtoB service and theexpansion of its liquidity provision andDMACFD services boosted the growing
trend of operating revenue and balance ofdeposited margin

100

3,000

2,500
80
2,000
60
1,500
40
1,000

20

500

00
14/4

14/5

証拠金残高

973

1,008 1,077 1,174 1,053 1,204

営業収益

2438

14/6

30

14/7

27

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14/8

4214/975

14/10 14/11 14/12
937
98

15/1

15/2

15/3

15/4

15/5

15/6

1,126 1,093 1,090 1,376 1,808 2,047 2,695 3,049
45313622323763828

Corporate GuidanceInvast Securities Co., Ltd. (as of June 30, 2016)■ 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：

49 [Non-consolidated]
69 [Consolidated]■ Licenses：

Financial Instruments Business Operators (Type 1/ Type 2), Investment Advisory andAgency BusinessDirector-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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