Consolidated Financial Summary under Japanese GAAPFor the year ended March 31, 2022

April 28, 2022
Company Name
Listed Stock Exchange
Securities Code
URL
Representative
Contact Person

AIZAWA SECURITIES GROUP CO., LTD.
Tokyo Stock Exchange
8708
https://www.aizawa-group.jp
Takuya Aizawa, President & CEO
Kazuhiro Mashiba, Director & CFO

Scheduled date of annual meeting of shareholders
Scheduled date of filing financial report
Scheduled date of dividend payment
Supporting explanatory documents on financial results
Briefing on financial results (for institutional investors & analysts)

June 24, 2022
June 27, 2022
June 06, 2022
YES
YES(All figures are rounded off to the nearest million)

1. Consolidated financial summary (From April 1, 2021 to March 31, 2022)(1) Consolidated business results(% represents year-on-year change)

OperatingrevenueYear ended March 31,
2022
Year ended March 31,2021
Note: Comprehensive income

Net operating
revenuemillion yen％

16,05016,433OperatingprofitOrdinary
profit％million yen

％

△2.3

15,619 △4.3

△533

―

15.8

16,316

million yen

16.0

Profit attributable toowners of parent％

million yen％

1,429 △7.4

2,901

△36.1

1,542

4,538

382.6

million yen

929 267.8

1.4

Year ended, March 31, 2022: 761 million yen (△92.7% vs same term previous year)
Year ended, March 31, 2021: 10,369 million yen (-% vs same term previous year)

Earnings per share

Diluted earnings per
share

Return on equity

Return on assets

yen

yen

％

％

％

Year ended March 31, 2022

73.85

―

5.1

1.3

△3.3

Year ended, March 31, 2021

111.09

―

8.4

1.6

5.7

Gross profit
margin

Note:

1.
2.

Equity gain (loss) of affiliated companies
As of March 31, 2022: -- million yen
As of March 31, 2021: -- million yen
We have introduced ESOP, and average number of company’s share bought under this program for the period under review are being accounted
under company’s own treasury shares.

(2) Consolidated financial position
Total assets

As of March 31, 2022
As of March 31, 2021
Note: Shareholders' equity
As of March 31, 2022: 55,712 million yen

Net assets

Shareholders'equity ratio

Net assets
per share

million yen

million yen％

yen

104,723
107,12758,02958,34653.2
54.0

1,440.62
1,444.30

As of March 31, 2021: 57,811 million yen

(3) Consolidated cash flow
Cash flows fromoperating activities

FY ended March 31, 2022
FY ended March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash & cash equivalents
at the end of period

million yen

million yen

million yen

million yen△3,930△1,618

4,749
4,111

959
△1,783

18,666
16,231

2．Dividends
Dividend per share

Total annual
dividends

Dividends
payout ratio(Consolidated)

Net assets
dividend ratio(Consolidated)

End of 1Q

End of 2Q

End of 3Q

End of 4Q

Annual
Total

yen

yen

yen

yen

yen

million yen%%

FY ended March 31, 2021

―

11

―

21

32

1,303

28.8

2.4

FY ended March 31, 2021

―

13

―

15

28

1,104

37.9

1.9

FY ending March 31, 2023
(Forecast)

―

―

―

―

―

―

3. Earning forecast for the fiscal year ending March 31, 2022 (Consolidated)
The Group operates principally in the financial securities business, and its operating results are likely to be affectedby economic and market fluctuations. Due to such nature of its business and consequential difficulty in predicting its
performance, the group does not disclose the forecast of operating results. Such forecasts may mislead the investors.
Instead of it, as we finalize the financial results, we release the preliminary numbers for the quarterly and yearly
results.
※Notes(1) Important changes in subsidiaries during the term
(Changes pursuant to the subsidiaries that lead to a change in the scope of consolidation)
New: 1 (AIZAWA SECURITIES CO., LTD.)
Exclusion: None

YES(2) Changes in accounting policies, changes in accounting estimates and retrospective restatements
YES1) Changes in accounting policies based on revisions of accounting standard
NO2) Changes in accounting policies other than item 1)above
NO3) Change in accounting estimatesNO4) Retrospective restatements(3) Number of issued shares (Common stock)1) Number of shares issued at the end of the term including treasury shares
As of March 31, 2022: 47,525,649 shares
As of March 31, 2021: 47,525,649 shares
2) Number of treasury shares at the end of the term
As of March 31, 2022: 8,853,110 shares
As of March 31, 2021: 7,498,290 shares
3) Average number of shares outstanding (Cumulative)
As of March 31, 2022: 39,291,333 shares
As of March 31, 2021: 40,856,070 shares

(Reference)
1. Financial summary (From April 1, 2021 to March 31, 2022)(1) Business results(% represents year-on-year change)

OperatingrevenueYear ended, March 31, 2022
Year ended, March 31, 2021

Net operating
revenue

OperatingprofitOrdinary
profitProfit attributableto owners of parent

million yen％

million yen％

million yen％

million yen％

million yen

％

8,018
16,152

△50.4
14.0

7,974
16,062

△50.4
14.3

△400
976

―
295.1

1,129
1,576

△28.3
6.9

2,293
4,534

△49.4
391.7

Earnings per share

Diluted earnings per share

yen

yen

Year ended, March 31, 2022

58.37

―

Year ended, March 31, 2021

111.00

―

Note:
1.

We have introduced ESOP, and average number of company’s share bought under this program for the period under review are being accounted
under company’s own treasury shares.

(2) Consolidated financial position

As of March 31, 2022
As of March 31, 2021
Note: Shareholders' equity
As of March 31, 2022: 48,488 million yen

Net capital
regulation
ratio

Total assets

Net assets

Shareholders'equity ratio

million yen

million yen

％

yen

％

52,184
105,682

48,48857,09292.9
54.0

1,253.81
1,426.32

409.8

Net assets
per share―

As of March 31, 2021: 57,092 million yen※ This consolidated financial summary is not subject to quarterly review procedures by certified public
accountants or audit corporations.
※ Explanation on forecasts
The group operates principally in the financial securities business, and its operating results are likely to be affectedby market fluctuations. Due to such nature of its business and difficulty in predicting its performance, group does
not forecast on business results and dividends. At the end of the term, we release the preliminary numbers, as we
finalize the financial results.

Supporting Materials
Table of contents
1.

Financial results for the year ended March 31, 2022
(1) Explanation of business results ·························································································· 1(2) Explanation of the financial results ····················································································· 2(3) Explanation of cash flows·································································································· 2(4) Explanation on the forecast of consolidated business results ······················································· 22.

Basic approach of selecting accounting standards········································································· 23.

Consolidated financial statements and major notes(1) Consolidated balance sheet ······························································································· 3(2) Consolidated statements of income and comprehensive income statement ········································ 5(3) Consolidated statements of changes in net assets ····································································· 7(4) Consolidated statements of cash flows ·················································································· 9(5) Notes on consolidated financial statements ·········································································· 11(Notes on going concern assumption) ················································································· 11(Additional information) ································································································ 11(Change in accounting policy) ························································································· 11(Segment information) ·································································································· 12(Per share information) ·································································································· 13(Important subsequent events) ························································································· 14

4.

Supplementary information
Consolidated business results for the year ended March 31, 2022
(1) Commission received ···································································································· 15(2) Net trading income ······································································································· 15(3) Comparative quarterly consolidated statements of income ························································ 16

5.

Financial statements and major notes(1) Balance sheet ·············································································································· 17(2) Statements of income ······································································································ 19

1. Financial results for the year ended March 31, 2022
(1) Explanation of the business results

For the reporting period, operating revenue declined by 2.3% to 16,050 million yen; operating loss was 533
million yen; ordinary profit declined by 7.4% to 1,429 million yen; and profit attributable to owners of parent
declined by 36.1% to 2,901 million yen.
For the year ended March 31, 2022, break-down of business results are as follow;(Percentage indicates a year-on-year change. The same shall apply hereinafter in this section)（Commission received）
For the financial year ended March 2022, Total commissions received declined by 2.2% to 10,176 million yen.
Details are as follow:
1) Brokerage commission
Declined by 29.2% to 5,571 million yen due to decline in the trade value of foreign equities.
2) Commission from underwriting, secondary distribution and solicitation towards professional investors
Increased by 415.5% to 25 million yen due to increase in underwriting of domestic equities.
3) Fee from offering, secondary distribution and solicitation towards professional investors
Increased by 106.6% to 1,705 million yen due to increase in the sales of mutual funds.
4) Other fees received
Increased by 68.9% to 2,873 million yen due to increase in the handling and incentive fees of Fund Wrap.
（Net trading income）
For the financial year ended March 2022, Net trading income declined by 14.4% to 4,751 million yen. Details
are as follow:
1) Equities
Declined by 13.2% to 4,031 million yen due decline in the trading value of foreign equities OTC trades.
2) Bonds
Declined by 61.0% to 101 million yen due reduced handling of foreign bonds.
3) Others
Decline by 4.3% to 617 million yen due to forex trades.
（Net financial income）
Net financial income increased by 5.8% to 335 million yen. Under this category, income increased by 3.4% to421 million yen due to increase in income from margin trades, while expenses declined by 5.2% to 86 million
yen due to decline in expenses from margin trades.
（Other operating revenue and expenses）
Other operating revenues increased by 850.7% to 701 million yen due to an increase in sales of operational
investment securities and real estate rental income. Other operating expenses amounted to 345 million yen,mainly due to an increase in cost of sales of operating investment securities and cost of sales of real estate.
（Selling, general and administrative expenses）
Selling, general and administrative expenses increased by 5.0% to 16,153 million yen due to increase in office
expense and real estate related expense.
（Non-operating profit and losses）
Non-operating profit was 1,962 million yen. Under this category, income were 2,058 million yen including thedividend income of 1,490 million yen and profit distributions of 463 million yen. While expenses under thiscategory were 95 million yen including the 69 million yen loss from investment in partnership.
1

（Extraordinary profit and losses）
Total extraordinary profit was 3,243 million yen. Under this category, income were 3,367 million yen including
the 3,366 million yen of gain from sale on investment securities. While losses were 123 million yen including
the 53 million yen loss on sales of investment securities and 69 million yen loss on sale of non-current assets.

(2) Explanation of the financial results(All comparisons in this section (2) are with the end of previous consolidated fiscal year)(Assets)
As of at the end of the period under review, total assets was 104,723 million yen, a decline of 2,403 million yen.
This was due to increase of 2,418 million yen in cash and deposits; decline of 4,320 million yen in cash
segregated deposit for customers.
(Liabilities)
As of at the end of the period under review, total liabilities was 46,693 million yen, a decline of 2,087 million
yen. This was due to decline of 4,467 million yen in deposits received and an increase of 2,102 million yen in
long-term borrowings.
(Net assets)
As for the period under review, total net assets was 58,029 million yen, a decline of 316 million yen. Under
this category, net assets declined by 1,442 million yen due to increase in treasury shares; valuation difference
on available-for-sale securities declined by 2,216 million yen; non-controlling interests increased by 1,782
million yen; retained earnings increased by 1,533 million yen.
(3) Explanation of the cash flows

For the financial year ended March 2022, Cash and cash equivalents increased by 2,434 million yen to 18,666
million yen. Details are as follow:(Cash flow from operating activities)
Net cash used in operating activities was 3,930 million yen. This was mainly due to decline in cash and deposits.
(Cash flow from investing activities)
Net cash provided by investing activities was 4,749 million yen. This was mainly due to sale and purchase ininvestment securities.
(Cash flow from financing activities)
Net cash provided by investing activities was 959 million yen. This was mainly due to long-term borrowings andpurchase of treasury shares.
(4) Explanation on the forecast of consolidated business results

The group operates principally in the financial securities and investments business. In this industry, there exist
uncertainties due to, but not limited, economic and market conditions. Any forecast based on uncertain
situations can mislead the investors.
Group tries to monitor and calculate such market risks and its effects on the business results. Due to suchnature of its business and consequential difficulty in predicting its performance, the group does not disclose theforecast of business results. Instead of it, as we finalize the financial results, we release the preliminary
numbers for the quarterly and yearly results.

2. Basic approach of selecting accounting standards
Company uses Japanese GAAP accounting standards to ensure the comparison with previous terms. In regard
to applying the IFRS accounting standards in future, company will take appropriate measures in considerationof various domestic and international situations.

23. Consolidated financial statements and major notes(1) Consolidated balance sheet(million yen)

As ofMarch 31,
2021

As of
March 31,2022

16,707
27,74027,739
0
1,117
244
244
817
16,297
15,638
658
163
160
3
1,351
△0
64,44019,12623,41923,418
0
8,601
361
361
776
15,81015,528
281
176
174
2
1,215
―
69,488

716
346
913
4,724
6,701

759
335
806
6,258
8,160

295
27
49
372

182
31
27
241

33,530
1,069
1,017
△5
35,612
42,686

24,7911,067
959△326,81535,217―――
107,1271
16
17
104,723

AssetsCurrent assets
Cash and deposit
Cash segregated as deposits
Cash segregated as deposits for customers
Other deposits
Operational investment securities
Trading products
Trading securities and otherTrade date accrual
Margin transaction assets
Loans on margin transactions
Cash collateral pledged for securities borrowing on margin transactions
Advances paid
Advances paid to customers
Other advance payments
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net value)
Furniture & fixtures (net value)
Land
Rental real estate (net value)
Total Property, plant and equipment
Intangible assets
Goodwill
Software
OthersTotal intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Deferred organization expenses
Business commencement expenses
Total deferred assets
Total assets

3

(million yen)

Liabilities
Current liabilities
Trading products
Trading securities and other
Derivatives trading
Margin transaction liabilities
Borrowings on margin transactions
Cash received for securities lending on margin transactions
Loans payable secured by securities
Cash received on debt credit transaction of securities
Deposits received
Deposits from customers
Other deposits
Guarantee deposits received
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for director bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for share based remuneration
Other non-current liabilities
Total non-current liabilities
Reserves under special laws
Reserve for financial instruments transaction liabilities
Total reserves under special laws
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of
March 31,
2021

As of
March 31,
2022

94
85
9
1,861
585
1,276
2,930
2,930
24,982
21,024
3,957
5,482
3,795
994
652
31
1,204
42,029

117
117
0
1,791
1,115
675
4,800
4,800
20,51418,088
2,425
4,937
3,795
1,212
423
27
819
38,440

934
5,150
151
369
6,605

3,036
4,553
226
290
8,107

146
146
48,781

146
146
46,6938,000
8,087
35,388△3,34848,1288,000
8,122
36,922△4,79048,254

9,607
―
75
9,683
534
58,346
107,127

7,391
85
△19
7,457
2,317
58,029104,723

(2) Consolidated statements of income and comprehensive income statement
Consolidated statements of income (For the year ended March 31, 2022)(million yen)

Operating revenue
Commission received
Net trading income
Financial revenue
OthersTotal operating revenue
Financial expenses
Other operating expenses
Net operating revenue
Selling, general and administrative expenses
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Provision of allowance for doubtful accounts
OthersTotal selling, general and administrative expenses
Operating profit/loss(△)
Non-operating income
Dividend income
Profit distributions
Reversal of allowance for doubtful accounts
Relief grants
OthersTotal non-operating income
Non-operating expenses
Loss on investments in partnership
Cancellation penalty
Settlement expenses
Commission for purchase of treasury shares
OthersTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on step acquisitions
Reversal of reserve for financial instruments transaction liabilities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit/loss attributable to non-controlling owners
Profit attributable to owners of parent

5

Year ended March
31, 2021

Year ended March 31,
2022

10,4015,550
407
73
16,43390
26
16,316

10,176
4,751
421
701
16,05086
345
15,619

2,431
8,365
1,263
2,135
414
379
△0
395
15,386
929

2,690
7,990
1,635
2,395
454
476
△0
510
16,153
△533

498
194
0
112
56
862

1,490
463
―
0
102
2,058

212
3
21
11
0
249
1,542

69
10
2
4
9
95
1,429

4,246
1,336
36
35
5,654

1
3,366
―
0
3,367

21
19
806
―
5
853
6,343
1,059
747
1,806
4,536
△1
4,538

69
―
53
1
―
123
4,672
1,768
37
1,806
2,865
△ 35
2,901

Consolidated comprehensive income statement (For the year ended March 31, 2022)(million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Comprehensive income(Description)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling owners

6

Year ended March
31, 2021

Year ended March 31,
2022

4,536

2,865

5,596
―
236
5,833
10,369△2,216206△95△2,104761

10,3681675
85

(3) Consolidated statements of change in net assets(From April 1, 2020 to March 31, 2021)(million yen)

Total accumulated other comprehensive income

Shareholder’s equity

Total

Valuation

Capitalstock

CapitalsurplusRetainedearnings

securities

Balance at the
beginning of current
periodChanges of items
duringcurrent
periodDividendsofsurplusProfit attributableto owners ofparentPurchaseoftreasury shares
Restricted shares
remuneration
Disposaloftreasury sharesfor ESOP
Change in theownership
interest of parent
due to transaction
withnoncontrollingshareholders
Net change initems other thanshareholder’sequityTotal changes of
items during period
Balance at end ofcurrent period

8,000

8,097

31,774Non-

Foreign currency Remeasuremen accumulated
Total
difference on
controlling
Treasurytranslationotherts of defined
shareholder’savailable-for-saleinterests
sharesadjustmen
benefits plan comprehensive
equity△1,58046,291

4,011

Total net
assetsincome

―

△161

3,850

―

50,141

△924

△924

△924

4,538

4,538

4,538

△1,797△1,797△1,797

22

46

46

7

7

7

△34

△34

23

△34

5,596

―

236

5,833

534

6,367

―

△10

3,614

△1,767

1,836

5,596

―

236

5,833

534

8,204

8,000

8,087

35,388△3,34848,128

9,607

―

75

9,683

534

58,346

7

(From April 1, 2021 to March 31, 2022)(million yen)

Shareholder’s equity

Total accumulated other comprehensive income
Total

Valuation

Capitalstock

CapitalsurplusRetainedearnings

securities

Balanceatthebeginning of current
periodChanges of items
duringcurrent
periodDividendsofsurplusProfit attributabletoownersofparentPurchaseoftreasury shares
Restricted shares
remuneration
Disposaloftreasury shares for
ESOP
Change in theownership interestof parent due totransaction with
non-controllingshareholders
Net change initems other thanshareholder’sequityTotal changes of
items during period
Balance at end ofcurrent period

8,000

8,087

35,388Non-

Foreign currency Remeasurements accumulated
Total
controlling
difference on
Treasurytranslationof defined
othershareholder’sinterests
available-for-salesharesadjustment
benefits plancomprehensive
equity△3,34848,128

9,607

Total net
assetsincome

―

75

9,683

534

58,346△1,367△1,367△1,367

2,901

2,901

2,901

△1,482△1,482△1,482

28

63

63

11

11

11

―

―

35

―

△2,21685△95△2,226

1,782

△443

―

35

1,533

△1,442126△2,21685△95△2,226

1,782

△316

8,000

8,122

36,922△4,79048,254

7,391

85

△19

7,457

2,317

58,0298

(4) Consolidated statements of cash flows(million yen)

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase(decrease) in provision for director’s bonuses
Increase (decrease) in provision share based
enumeration
Increase (decrease) in net defined benefit assets
Interest and dividend income
Interest expenses
Loss(gain) on sales of investment securities

Year ended
March 31, 2021

Year ended
March 31, 2022

6,343

4,672

414
43

454
112

5

―

△1
208
9

△228
△3

82

74

△368
△923
90

△95
△2,445
86

△529
―

△0

△36

△3,3131―

Loss(gain) on sales of non-current assets
Loss (gain) on investment in partnership
Decrease(increase) in cash segregated as deposits forcustomers
Increase (decrease) in advance paid

△4,224212

68
69△5,650

4,320

74

△12

Increase(decrease) in trading products-assets
Increase(decrease) in trade date accrual
Increase (decrease) in operational investment
securities
Increase(decrease) in margin transaction assets

751
△459

△116
40

△160

△3,429△2,462486△3,878△1,534

△35

△0

6,566

△4,46723

Loss(gain) on valuation of investment securities
Loss(gain) on step acquisitions

Increase (decrease) in real-estate rent
Increase (decrease) in the reserve for financial products
transaction liabilities
Increase(decrease) in deposits received
Increase(decrease) in trading products-liabilities
Increase(decrease) in margin transaction liabilities

3496

Increase(decrease) in loans secured by securities
Increase(decrease) in guarantee deposits received

1,712

△70
1,869

△287

△544

Others△148△639

Subtotal△2,150△4,622

Interest and dividend income received
Interest expenses paid

922

2,433

△98

△85

Income taxes paid
Income taxes (paid) refund△301
9△1,6658△1,618△3,930Net cash provided by (used in) operating activities

9(million yen)

Year ended
March 31, 2021

Year ended
March 31, 2022

Payments into time deposits
Proceeds from withdrawal of time deposits

△410
408

△409
426

Purchase of sales of property, plant and equipment
Proceeds from sale of property, plant and equipment

△337
5,887

△322
46

△25
△6,5585,592―△15△2,009
6,915
30

327

209

△305

―

△414
64

△21
120

Others

△77
△48
8

△213
△23
15

Net cash provided by (used in) investing activities

4,111

4,749

950

2,230

△15

△127

△1
△1,797
7―△1△1,482
11
1,696

△926

△1,367△1,783

959

360

656

Cash flow from investing activities

Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Proceeds from dividends of investment in partnerships
Purchase of shares of subsidiary resulting in change inscope of consolidation
Payment for guarantee deposits
Proceeds from collection of guarantee deposits
Acquisition of long-term prepaid expenses
Asset retirement obligations

Cash flows from financing activities
Proceeds from long-term loans payable
Repayments on long-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from non-controlling interests
Cash dividends paid
Net cash provided by (used in) financing activities
Difference in cash and cash equivalents
Increase (decrease) in cash and cash equivalents

1,069

2,434

Cash and cash equivalents at start of period

15,162

16,231

Cash and cash equivalents at end of period

16,231

18,66610

(5) Notes on consolidated financial statements(Notes on going concern assumption)

Not applicable.
(Change in accounting policy)

1. Application of “Accounting standard for revenue recognition”
From the beginning of the consolidated 1st quarter of current accounting period, company has applied the“Accounting standard for revenue recognition” under ASBJ statement no. 29 as of March 31, 2020.
Company will recognize the revenue to be received in exchange for the good or service when control ofthe promised good or service is transferred to the customer.
There is no impact on the quarterly consolidated financial statements due to change in accounting policy.
2. Application of “Accounting standard for fair value measurement”
From the beginning of the consolidated 1st quarter of current accounting period, company has applied the“Accounting standard for fair value measurement” under ASBJ statement no. 30 as of July 4, 2019.
The new accounting policy will be applied in future and the transitional treatment will be applied inaccordance with the paragraph 19 of “Implementation guidance on disclosures about fair value offinancial instruments under ASBJ statement no. 19” and Paragraph 44-2 of “Accounting Standard for
Financial Instruments under ASBJ Statement No. 10”.
There is no impact on the quarterly consolidated financial statements due to change in accounting policy.
(Additional information)
ESOP
The company has introduced an Employee Stock Ownership Plan Trust (“ESOP Trust”) from July 22, 2019with the motive to increase the enterprise value over mid to long term. The Company's stock held by the
ESOP Trust is included in treasury shares under net assets with a book value of 312 million yen for 470
thousand shares as of March 31, 2022.

11

(Segment information)
In October 2021, the company changed its structure to holding company. With the change in holding
company, group has segregated the business focus from “Financial instrument securities business” tofollowing 3 segments of business; “Financial instrument securities business”, “Asset management business”
and “Investment business”.
Segment-wise operating revenue/profit/loss
The accounting methods used for the reported business segments are same as those used in the preparationof the consolidated financial statements. Profits of reportable segments are based on operating profit/loss.
Inter-segment revenues and transfers are based on prevailing market prices.
(From April 1, 2021 to March 31, 2022)(million yen)Segments
Amount as on

Financial

Asset

instrument

management

Investment

securities

businessbusiness

Total

Adjusted

Consolidated

amount *1

statements ofincome *2business

Operating revenue
Revenues from external clients

14,778631

641

16,050―16,050

31

3

39

75

△75

―

Total

14,810635

681

16,126△75

16,050

Profit/loss(△)

△470

21

137

△311

△221

△533

Assets63,728

4,313

31,962100,004

4,718

104,723

Liabilities

42,83958

6,233

49,131△2,437

46,693

Depreciation & amortization

433

4

5

442

12

454

Financial revenue

421

―

―

421

0

421

Financial expense

91

―

―

91

△5

86

Inter segment revenues

Others

Notes:*1
1. The segment profit/loss adjustment of △221 million yen includes; 394 million yen in inter-segment eliminations and △616 million yen in corporate expenses thatare not allocated to any segment. Corporate expenses are expenses held and incurred by the company as a holding company.
2. The segment assets adjustment of 4,718 million yen includes; △3,737 million yen of offsetting elimination of inter-segment accounts receivables and payables
and 8,456 million yen of total assets that are not allocated to any segment. Total assets are held by the company as a holding company.
3. The segment liabilities adjustment of △2,437 million yen includes; △6,059 million yen of offsetting elimination of inter-segment accounts receivables andpayables and 3,621 million yen of total liabilities that are not allocated to any segment. Total liabilities are held by the company as a holding company.
*2
Segment profit is adjusted with operating loss in the consolidated statements of income.

12(Per share information)

Year ended March 31, 2021 Year ended March 31, 2022

Net assets per share

1,444.30 yen

1,440.62 yen

Net income per share

111.09 yen

73.85 yen

Notes:
1)
2)
3)

Diluted profit (loss) per share are not applicable due to non-existence of potential shares outstanding having dilution effect.
Computation of the net income per share is based on following
The shares of the company remaining in the trust recorded as treasury stock in shareholders' equity are included in the treasury stock to
be deducted in the calculation of the average number of shares during the period in the calculation of net income per share. In calculating
net income per share, the average number of treasury stock deducted was 6,669,579 shares in the previous consolidated fiscal year and
8,234,316 shares in the current consolidated fiscal year.

Year ended March 31, 2021 Year ended March 31, 2022

Net income per share
Profit attributable to owners of parent (million yen)
Profit not attributable to common shareholders (million
yen)Profit related to common shareholders attributable toowners of parent (million yen)
Average number of common stock outstanding during
this year (thousands of shares)

13

4,538

2,901

―

―

4,538

2,901

40,85639,291

(Important subsequent events)
Purchase of treasury sharesCompany decided to purchase the treasury shares in accordance with the paragraph 1 of article 459, company law.
Decision was taken in the board meeting conducted on January 28, 2022. Company pursued the purchase of its
treasury shares.
1. Minutes of board meeting on purchase of treasury shares(1) Reason for pursuing purchase of treasury shares
To maintain flexible capital policy and increase the capital efficiency and return on equity(2) Details on purchase of treasury shares
1) Share type:
Common share2) Number of treasury shares:
Maximum of 1,000,000 shares (Within 2.6% of outstanding shares
excluding the treasury shares)
3) Value of treasury share:
Maximum of 1,200 million yen
4) Term for purchase:
From February 1, 2022 to January 31, 2023
5) Mode of purchase:
Direct trade through Tokyo Stock Exchange
2. Details on completed purchase of treasury shares
1) Share type:
Common share2) Number of shares:
68,100 shares
3) Value of shares:
47 million yen
4) Buyback term:
From April 1, 2022 to April 25, 2022
5) Mode of purchase:
Direct trade through Tokyo Stock Exchange
In line with above mentioned board decision, the status of purchase of treasury shares as of April 25, 2022
is as follow:
1) Number of treasury shares purchase completed:239,600 shares
2) Value of treasury shares purchase completed:
199 million yen

144. Supplementary information
Consolidated business results for the year ended March 31, 2022
(1) Commission receivedA) Breakdown of commission received(million yen)

Year ended March 31,
2021
(A)

Year ended March 31,
2022
(B)

Change
(B/A)

7,868
7,753
―
114

5,571
5,471
―
99

70.8%
70.6%
―
86.6%

4

25

515.5%

3
1

24
1

693.1%
97.5%

825

1,705

206.6%

1,701
10,401

2,873
10,176168.9%
97.8%

Brokerage commission
Equities
Bonds
Beneficiary securities
Commission from underwriting, secondary distribution
and solicitation towards professional investors
Equities
Bonds
Fee from offering, secondary distribution
solicitation towards professional investors

andOther fees received
Total
B)

Product wise breakdown(million yen)

Year ended March 31,
2021
(A)

EquitiesYear ended March 31,
2022 (B)

7,819

5,556

71.1%

1

1

90.9%

1,608

2,820

175.3%

971

1,798

185.2%

10,401

10,176

97.8%

Bonds
Beneficiary securities
OthersTotal(2)Change(B/A)

Net trading income(million yen)

Year ended March 31,
2021
(A)

Year ended March 31,
2022 (B)

Change(B/A)

Equities etc.

4,644

4,031

86.8%

Bonds, forex etc.
Bonds etc.
Forex etc.
Total

906
260
645
5,550

719
101
617
4,751

79.4%
39.0%
95.7%
85.6%

15

(3)

Comparative quarterly consolidated statements of income(million yen)

FY 2021

Operating revenue
Commission received
Brokerage commission

FY 2022

1Q
ended

2Q
ended

3Q
ended

4Q
ended

1Q
ended

2Q
ended

3Q
ended

4Q
ended

June 30

Sept.30

Dec.31March 31

June 30

Sept.30

Dec.31March 31

2,463
2,052

2,491
1,926

2,564
1,925

2,881
1,964

2,395
1,378

2,887
1,502

2,771
1,503

2,181
1,186

1

1

1

1

3

3

18

0

116

172

209

326

425

491

463

326

Other fees received
Net trading income
Financial revenue
OthersTotal operating revenue
Financial expenses
Other operating expenses

293
1,003
96
7
3,571
24
2

391
1,742
110
19
4,364
25
8

428
1,567
100
22
4,255
20
6

588
1,237
99
23
4,241
20
8

668
708
105
540
3,535
23
278

3,543

4,331

4,228

4,212

890
1,410
108
51
4,457
19
20
4,417

726
1,516
105
65
4,399
27
31

Net operating revenue
Selling, general and administrative
expenses
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Provision of allowance for doubtful
accounts
OthersTotal selling, general and administrative
expenses
Operating profit

589
1,115
103
43
3,657
16
15
3,625

4,341

3,234

547
1,908
290
495
74
55

625
2,239
306
502
98
92

603
2,133
302
550
97
107

655
2,084
363
587
144
122

579
1,930
421
528
141
88

721
2,173
473
781
143
92

761
2,127
347
549
88
234

627
1,758
392
535
81
60

0

0

△0

△0

0

△0

△0

△0

73

101

95

124

131

149

123

106

3,446

3,966

3,889

4,083

3,821

4,535

4,232

3,563

△117
76
80
△122
1,934
△277
2,089
764
1,325

108

△328

205
2

420
8

311

83

1,069
112

274
9

1,268

348

333

661

934

△312

Commission from underwriting,secondary distribution and solicitation
towards professional investors
Fee from offering, secondary distribution
and solicitation towards professional
investors

97

364

338

128

278
23

208
△13

308
21

65
218

Ordinary profit

353

587

626

△24

Extraordinary income
Extraordinary losses

490
118

134
16

4,300
691

728
25

Profit before income taxes

724

705

4,234

678

Income tax expenses

17

344

1,088

355

ProfitProfit (loss) attributable to noncontrolling interests
Profit attributable to owners of parent

707

360

3,146

322

△195
1,355
4
1,155
89
278
966
46
919

―

―

―

△1

△30

△9

△6

9

707

360

3,146

324

949

1,334

940

△322

Non-operating income
Non-operating expenses

16

5.

Financial statements and major notes(1) Balance sheet(million yen)

As ofMarch 31,
2021

As of
March 31,2022

15,067
27,74027,739
0
244
244
817
16,297
15,638
658
163
160
3
1
277
267
336
382
13
△0
61,608

723
―
―
―
―
―
―
―
―
―
―
―
―
―
97
53
16
0
27
―
917

1,425
346
3,315
100
5,186

128
98
50
―
277

24
22
22
0
69

14
3
―
―
17

31,138
2,581
1,613
13
1,500
9
800
178
960
26
△5
38,81844,073
105,682

4,988
41,043
―
―
4,500
―
417
0
―
25
△3
50,971
51,26652,184

AssetsCurrent assets
Cash and deposit
Cash segregated as deposits
Cash segregated as deposits for customers
Other deposits
Trading products
Trading securities and otherTrade date accrual
Margin transaction assets
Loans on margin transactions
Cash collateral pledged for securities borrowing on margin transactions
Advances paid
Advances paid to customers
Other advance payments
Short-term loans receivables
Advance payments
Prepaid expenses
Accounts receivables
Accrued income
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Building (net amount)
Equipment (net amount)
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold right
SoftwareTelephone subscription right
OthersTotal intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Other securities of subsidiaries and associates
Investments in capital
Long-term loans receivable from subsidiaries and associates
Long-term loans receivable from employees
Long-term guarantee deposits
Long-term prepaid expenses
Prepaid pension expenses
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

17

(million yen)

Liabilities
Current liabilities
Trading products
Trading securities and other
Derivatives trading
Margin transaction liabilities
Borrowings on margin transactions
Cash received for securities lending on margin transactions
Loans payable secured by securities
Cash received on debt credit transaction of securities
Deposits received
Deposits from customers
Other deposits
Guarantee deposits received
Short-term loans payable
Accounts payable
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for director bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for share based remuneration
Long-term deposits received
Accrued income
Other non-current liabilities
Total non-current liabilities
Reserves under special laws
Reserve for financial instruments transaction liabilities
Total reserves under special laws
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Legal reserve for retained earnings
Other retained earnings
Reserve for repair
Reserve for reduction entry of replaced non-current assets
Reserve for reduction entry of replaced land
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale-securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets
18

As of
March 31,
2021

As of
March 31,
2022

94
85
9
1,861
585
1,276
2,930
2,930
24,961
21,024
3,937
5,482
3,795
821
316
994
650
31
29
41,968

―
―
―
―
―
―
―
―
28
―
28
―
―
72
7
128
―
23
23
283

934
5,037
151
305
32
13
6,476

3,036
370
―
5
―
―
3,412

146
146
48,590

―
―
3,696

8,000

8,000

7,863
258
8,121

7,863
294
8,157

3,202

3,202

3,000
529
1,270
23,0004,100
35,103△3,34847,876―――26,0006,826
36,028△4,79047,3959,215
9,215
57,092
105,682

1,092
1,092
48,48852,184

(2) Statements of income(million yen)

Year ended March
31, 2021
Operating revenue
Management advisory fee
Interest from lending to affiliated companies
Commission received
Brokerage commission
Commission from underwriting, secondary distribution andsolicitation towards professional investors
Fee from offering, secondary distribution and solicitation
towards professional investors
Other fees received
Net trading income
Financial revenue
Total operating revenue
Financial expenses
Net operating revenue
Selling, general and administrative expenses
Trading related expenses
Personnel expenses
Real estate expenses
Office expenses
Depreciation
Taxes and dues
Provision of allowance for doubtful accounts
OthersTotal selling, general and administrative expenses
Operating profit
Non-operating income
Real estate rental income
Dividend income
Profit distributions
Reversal of allowance for doubtful accounts
Relief grants
OthersTotal non-operating income
Non-operating expenses
Interest paid
Loss on investments in partnership
Cancellation penalty
Settlement expenses
Commission for purchase of treasury shares
OthersTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Reversal of reserve for financial
instruments transaction liabilities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on the retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit19

Year ended March
31, 2022――
10,194
7,868

350
40
4,886
2,880

4

6

825

916

1,495
5,550
407
16,15290
16,062

1,083
2,525
214
8,018
44
7,974

2,426
8,224
1,261
2,100
412
347
△0
313
15,085
976

1,294
4,216
978
1,100
317
218
0
248
8,374
△400

14
485
183
0
112
64
861

55
1,459
94
―
0
54
1,665

―
223
3
21
11
0
260
1,576

5
113
10
1
4
0
135
1,129

4,246
1,335

1
2,023

35

0

5,617

2,024

21
19
806
―
5
853
6,341
1,059
747
1,806
4,534

69
―
―
1
―
70
3,084
767
22
790
2,293