INVAST SECURITIES CO.,LTD.

Financial Highlights (Consolidated)
The Fiscal Year ends Mar 2016

Invast Securities Co., Ltd.

Financial Highlights for the Fiscal Year Ended March 2016

Consolidatedresults

OTC FX

Exchange FX

Overseas
Financial ServiceOthers• Operating income• Ordinary income• Net income

3,785 million yen (3,474 million yen a year ago, 109.0％）
282 million yen (△74 million yen a year ago, －％）△404 million yen (496 million yen a year ago, －％）Both operating income and ordinary income grew thanks to higher revenues from TriAuto FX and ST24 services as well as to increased
overseas subsidiary revenues, which enabled the Company to achieve profitability for the year under review.
Recorded negative net income due to the posting of extraordinary loss in the form of valuation loss on investment securities in theCompany’s capital and business alliance partner (486 million yen).

• Operating revenues
2,077 million yen (1,950 million yen a year ago, 106.5％）• Segment profit or loss
281 million yen (△55 million yen a year ago, －％）Operating revenues grew year on year and achieved profitability as trading volumes increased markedly due to theTriAuto FX service offering the industry’s narrowest spread.

• Operating revenues
1,079 million yen (1,177 million yen a year ago, 91.7％）• Segment profit or loss
161 million yen (189 million yen, 85.3％）
Revenues performed in tandem with prevailing market conditions although a stable trading volume market share wasmaintained.

• Operating revenues
562 million yen (311 million yen a year ago, 180.5％）• Segment profit or loss △153 million yen (△242 million yen a year ago, －％）Continued to post single-month profitability under the new organizational structure put in place in November 2015
onwards. Operating revenues grew markedly. Failed to achieve profitability for the year under review.

• Operating revenues
95 million yen (46 million yen a year ago, 204.6％）• Segment profit or loss
21 million yen (△11 million yen a year ago,－％）Operating revenues and income grew significantly as the market environment for the Nikkei Average Index improved.

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved* Numbers in brackets denote year-ago numbers
and year-on-year percentage changes.

2

Financial Highlights(Consolidated)

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved3Summary of Financial Results FY ends Mar. 2016
（ Millions of yen ）The Fiscal Year Ended
March 2015

The Fiscal Year Ended
March 2016

Year-on-year change

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Nonconsolidated

Consolidated

Operating revenues

3,174

3,474

3,252

3,785

102.5％

109.0％

Commissions earned(exchange FX, etc.)

864863926969107.1％

112.3％

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

1,862

2,140

1,921

2,376

103.1％

111.0％

Selling, general andadministrative expenses

3,051

3,594

2,787

3,474

91.3％

96.7％

Operating income

122△119464311

380.1％-％

Ordinary income

157△74475282

300.8％-％

Extraordinary income/loss

989

989

△512

△512-％-％Net income

728496△211△404-％-％

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4Comparison of Financial Results (Consolidated)(Millions of yen)
4,000
3,500
3,000

3,785
3,474
Operatingrevenues

109％

Sellong,general andadministrative expenses

2,500

Operating income

2,000
Ordinary income

1,500989

1,000

Extraordinary income/losss
496

500311282

Net income0△ 500△ 119 △ 74

FY2015

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved△ 512 △ 404

FY2016

5EBITDA (Consolidated)
FY ended March 2013
[Non-consolidated]

FY ended March 2014
[Consolidated]

FY ended March 2016
[Consolidated]

FY ended March 2015
[Consolidated]

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

Net income
before taxes

1000158

38947149

3,528647413277

17790124△71△374

Extraordinary
income/loss

2300△132403,635

132

542

470

9△33000△512Interest
expense

0000000000000000

Depreciation

69

6976

93

91

93102

98

111

114

107

93

89

88

88

86

EBITDA

146

69

235

497

538

143

△4△26△383

57

375

304

180

212

17224（百万円）
600

Remaining positive for the lastconsecutive 7 quarters
FY ended March 2016 634million yen

400
200
0-200

Note: EBITDA was calculated by the formula of:-400

Net income before taxes – extraordinary
1Q

2Q

3Q

4Q1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY ended MarchFY ended MarchFY ended MarchFY ended March

2013

2014

2015

2016

income/loss + Interest expense + Depreciation= EBITDA. This represents an income metricthat illustrates what level of cash flow wasgenerated by capital including borrowed capital

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6Total deposited margin(Hundreds ofmillions of yen)800
Kept at the 70.0 billion yen mark despite a marked decline in theoverseas financial business (IFS)

70.0 billion yen

700

600500JanMaySep2014

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Jan2015

MaySepJan2016

7

INVAST FINANCIAL SERVICES PTY LTD.

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8Highlights of the Account Settlement
for the period from January to December 2015: IFS
 Earnings for the period from January to December 2015 grew significantly year
on year. Operating revenues rose substantially to 562 million yen, or 180.5%of the year-ago level.
 The Company failed to achieve operating profitability for the period underreview as operating income stood at a negative 153 million yen.
 Gavin White took office as new CEO in November 2015.
 Achieved single-month profitability continuously from November 2015.

 Expanded the business to provide liquidity to financial services companies⇒ Pure Prime (service name).
 Stepped up new customer acquisition sales activities targeting financial services
companies.
 Saved fixed costs by reducing retail headcount, among other measures.

 Continued to post single-month profitability from January to March 2016 despite
depressed market trading volumes.
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9Grow the overseas financial business: IFS

4,500
4,000
3,500

Both deposited margin and operating revenues declined from January to March 2016
due to withdrawals by corporate customers, among other factors. However, theCompany continued to post single-month profitability owing to cost-saving efforts.

(10,000 Australian dollars)

120

Total

100

deposited…

3,000

80

2,500

60
2,000

1,500

40

1,000

20500

002014

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2016

10Recording of valuation loss oninvestment securities

Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved11Recording of valuation loss on investment securities
The Company recorded 486 million yen in valuation loss on investment securities as a result of applying mark-to-market
valuation to shares it had held in Tradency Inc. (“Tradency”) since the capital and business alliance entered into between bothcompanies in September 2014.

ReasonThe Company recorded as extraordinary loss a portion of the share value that diminished due to Tradency’s business plan lagging
behind its schedule.

Future action
Tradency’s Mirror Trader service is used by Invast Securities as the platform for ST24, an automatic FX trading service. The latest

recording of extraordinary loss is one conforming to Japanese generally accepted accounting principles (“JGAAP”), and it will nothave any effect on the Company’s business alliance with Tradency. Going forward, both companies will continue to jointly
develop systems of higher quality and value-added by maximally leveraging synergistic effects to be achieved through anamalgamation of Tradency’s superior technological expertise and Invast Securities’ FX business operational know-how.

About Tradency
Founded in 2005 and equipped with an Israel-based development site, Tradency is a FinTech service company that, sinceearly 2015, has been providing innovative trading solutions that are compatible with Robo-advisor service, a type of service
attracting much attention of late.

Automatic trading platform service Mirror Trader has been supported by users in Japan and the world’s five continents for along period of time as a leading service offering in the field of selection-based system trading.
Copyright© INVAST SECURITIES CO.,LTD. All Rights Reserved12

Measures for Returning Profits to Stockholders

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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 2016 Interim dividend

40 yen (actual result) Year-end dividend

40 yen (estimation)

 Total80 yen (estimation)

 Dividend Yield in the FY ended March 2016 (estimate)
5.89％*Stock price: calculated with the closing price (1,356 yen) on March 31, 2016

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14

Development of Service Going Forward

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15

Steps taken in the 4th quarter (from January to March 2016)


TriAuto FX service
Reduced the minimum trade units for manual trading to“1,000 currency units”
Launched the provision of the industry’s narrowest

spreads(USD/JPY 0.03 yen, EUR/USD 0.3 pips, and AUD/JPY 0.06yen)Equipped smartphone application with “ShikakeRanking” as a new featureOverhauled chart functions

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16

Future Business Development
Launched “TriAuto ETF,” a new overseas trading service,on April 25, 2016

The world’s first ETF-dedicated margin trading service(as identified by Invast Securities)

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17

The features of “TriAutoETF”
Allows one single account to oversee ETFs selected globally from among those in Japan andabroad.

Offers zero foreign exchange risk for the principal of an overseas ETF through the introduction ofa contract for difference (CFD) scheme.

Low cost

Free of charge for all the following items• Commission on manual trading* Auto pilot order: 0.3% of the order value (incl. taxes), free of charge until July 31, 2016

• Exchange commission• Trading tool use fee• Account administration fee
Interest adjustments
Long interest = ETF closing price (mid price) Number of units held x (1.25%+Libor) x Number of days

assigned/365

Minimum initial trading value of 10,000 yenCopyright© INVAST SECURITIES CO.,LTD. All Rights Reserved18

ST24 new function release schedule
The Full Auto Function service, offering a fully automatic FX

trading function.
Automated trading and strategy replacement done according to certain conditions. The user justneeds to select a preferred choice from among those contained in the Full Auto Fund, a pool ofpackages that are created by combining multiple strategies according to conditions set by theCompany independently (selection criteria and replacement frequency, among others).
PC version

Copyright© INVAST SECURITIES CO.,LTD. All Rights ReservedSmartphone version

19Corporate GuidanceInvast Securities Co., Ltd. (as of March 31th 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：

52[Non-consolidated]
71[Consolidated]■ 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

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

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