Consolidated Financial Summary under Japanese GAAPFor the year ended March 31, 2024

April 26, 2024
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
Omichi Koji, Executive Officer

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 26, 2024
June 27, 2024
June 06, 2024
YES
YES(All figures are rounded off to the nearest million)

1. Consolidated financial summary (From April 1, 2023 to March 31, 2024)(1) Consolidated business results(% represents year-on-year change)

OperatingrevenueYear ended March 31,2024
Year ended March 31,2023
Note: Comprehensive income

Net operating
revenue

Operatingprofit (loss)

Profit (loss)
attributable toowners of parent

Ordinary
profit (loss)

million yen％

million yen％

million yen％

million yen％

million yen％

18,98048.8

18,191

49.0

1,159

―

1,941

―

2,975

―

12,751△20.6

12,208△21.8△2,782―△1,911―△2,375―

Year ended, March 31, 2024: 6,369million yen (-% vs same term previous year)
Year ended, March 31, 2023: △2,677 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, 2024

79.39

―

5.6

1.7

6.1

Year ended, March 31, 2023

△62.03

―

△4.5

△1.9

△21.8

Gross profit(loss) margin

Note:
1.
2.

Equity gain (loss) of affiliated companies
As of March 31, 2024: -- million yen
As of March 31, 2023: -- 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, 2024
As of March 31, 2023
Note: Shareholders' equity
As of March 31, 2024: 55,654 million yen

Net assets

Shareholders'equity ratio

Net assets
per share

million yen

million yen％

yen

124,119
98,83558,65754,03044.8
51.6

1,498.42
1,350.08

As of March 31, 2023: 50,997 million yen

(3) Consolidated cash flow
Cash flows fromoperating activities

FY ended March 31, 2024
FY ended March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash & cash equivalents
at the end of period

million yen

million yen

million yen

million yen

8,447△9,4871,478
474△1,5193,824

22,70913,734

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, 2023

―

13.00

―

13.00

26.00

1,015

―

1.9

FY ended March 31, 2024

―

13.00

―

26.00

39.00

1,489

49.1

2.7

FY ending March 31, 2025
(Forecast)

―

―

―

―

―

―

3. Earning forecast for the fiscal year ending March 31, 2025 (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 (Japan Securities Co., Ltd.)
Exclusion: None

YES(2) Changes in accounting policies, changes in accounting estimates and retrospective restatements
NO1) 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, 2024: 47,525,649 shares
As of March 31, 2023: 47,525,649 shares
2) Number of treasury shares at the end of the term
As of March 31, 2024: 10,383,274 shares
As of March 31, 2023: 9,751,971 shares
3) Average number of shares outstanding (Cumulative)
As of March 31, 2024: 37,484,920 shares
As of March 31, 2023: 38,291,055 shares

2

(Reference)
1. Financial summary (From April 1, 2023 to March 31, 2024)(1) Business results(% represents year-on-year change)

OperatingrevenueYear ended, March 31, 2023

Operatingprofit (loss)

Profit (loss)
attributable toowners of parent

Ordinary
profit (loss)％

million yen％

million yen％

million yen％

million yen％

815 △3.4
844 △89.5

815
844

△3.4
△89.4

4
△50

―
―

147
91

61.7
△91.9

53
1

―
△99.9

million yen
Year ended, March 31, 2024

Net operating
revenue

Earnings per share

Diluted earnings per share

yen

yen

Year ended, March 31, 2024

1.43

―

Year ended, March 31, 2023

0.04

―

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

Total assets

As of March 31, 2024
As of March 31, 2023
Note: Shareholders' equity
As of March 31, 2024: 46,041 million yen

Net assets

Shareholders'equity ratio

Net assets per
sharemillion yen

million yen％

yen

48,95049,04446,041
46,938

94.1
95.7

1,239.59
1,242.63

As of March 31, 2023: 46,938 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.

3Supporting Materials
Table of contents
1.

Financial results for the year ended March 31, 2024
(1) Explanation of business results ·························································································· 1(2) Explanation of the financial results ····················································································· 3(3) Explanation of cash flows·································································································· 3(4) Explanation on the forecast of consolidated business results ······················································· 32.

Basic approach of selecting accounting standards········································································· 33.

Consolidated financial statements and major notes(1) Consolidated balance sheet ······························································································· 4(2) Consolidated statements of income and comprehensive income statement ········································ 6(3) Consolidated statements of changes in net assets ····································································· 8(4) Consolidated statements of cash flows ················································································ 10(5) Notes on consolidated financial statements ·········································································· 12(Notes on going concern assumption) ················································································· 12(Additional information) ································································································ 12(Segment information) ·································································································· 13(Per share information) ·································································································· 15(Important subsequent events) ························································································· 164.

Supplementary information
Consolidated business results for the year ended March 31, 2024
(1) Commission received ···································································································· 17(2) Net trading income ······································································································· 17(3) Comparative quarterly consolidated statements of income ························································ 18

5.

Separate financial statements and major notes(1) Balance sheet ·············································································································· 19(2) Statements of income ······································································································ 21

41. Financial results for the year ended March 31, 2024
(1) Explanation of the business results

For the reporting fiscal year (April 1, 2023 to March 31, 2024), stock markets remained buoyant, especiallyin developed countries such as Japan and the United States. In the U.S, stock markets were sluggish until
October as the FOMC’s interest rate hike phase continued till July 2023 due to inflation concerns. From
November onward, surge in stock market was seen backed by favorable results of large high-tech stocks
due to the generation AI boom and expectations of interest rate cut by FOMC from the summer of 2024.
In Japanese stock market, the yen weakened against major currencies as Japan became the only major
developed country to continue monetary easing while major developed countries adopted tightening ofmonetary policies to control inflation in the foreign exchange market. Japanese stocks were preferred among
global markets. This was led by expectations of improvement in corporate earnings due to the weaker yen
and the reforms in the companies based on Tokyo Stock Exchange's request for action to realize
management conscious of cost of capital and stock prices. In January 2024, the new NISA (Nippon
Individual Savings Account) with an increased annual investment limit was launched. The Nikkei Stock
Average hit an all-time high of 40,888.43 (close price) on March 22, and closed at 40,369.44 at the end of
March.
In Asian markets, both the Shanghai Composite Index and the Hong Kong’s Hang Seng Index were weak
as major real estate developer’s cash flows deteriorated due to weaker real estate demand in China andconcerns about same impacting the domestic consumption. ASEAN countries saw their currencies
weakening due to prevailing high interest rates in the U.S. rates. However lower inflation led to the
expectations for a recovery in domestic consumption and improved bank earnings. Stock price indexes ofIndonesia and the Philippines, both of which depend on domestic demand, performed well. In Vietnam,
major economic indicators such as industrial production and exports improved from the second half of 2023,
and funds flowed into the stock market, resulting in a significant rebound in the VN Index.
Under these circumstances, our group is working to establish an asset building business based on ourmanagement philosophy of ''providing more people with a richer life through securities investment''. Basedon the mid-term management plan "Define Next 100 - More for Customers," which started in FY2022, weare pursuing various initiatives in line with five basic policies “thoroughly customer oriented ”, “shift froma brokerage business to an asset building business”, “enhancing the platform business”, “strengthening thegroup synergies to become a comprehensive financial group” and “achieving a sustainable future”.
The Group along with its core financial instrument securities business, operates investment business, asset
management business, financial products intermediary business, and Vietnam financial securities business.
The group will continue to strive to become a financial group by leveraging the strengths of each subsidiaryand working collectively with each other.
The group is pursuing buyback of maximum of 300,000 treasury shares, with the maximum value of 500
million yen, which was decided in the board meeting conducted on January 30, 2024.

1

For the reporting period, operating revenue increased by 48.8% to 18,980 million yen; operating profit was
1,159 million yen; ordinary profit was 1,941 million yen; and net profit attributable to owners of parent was
2,975 million yen.
For the year ended March 31, 2024, 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 2024, Total commissions received increased by 47.4% to 13,224 million yen.
Details are as follow:
1) Brokerage commission
Increased by 46.2% to 6,735 million yen due to increase in the trade value of equities.
2) Commission from underwriting, secondary distribution and solicitation towards professional investors
Declined by 74.8% to 10 million yen due to decline in underwriting of domestic equities.
3) Fee from offering, secondary distribution and solicitation towards professional investors
Increased by 39.1% to 2,636 million yen due to increase in the sales of mutual funds.
4) Other fees received
Increased by 58.3% to 3,842 million yen due to increase in the investment advisory fees of Fund Wrap.
（Net trading income）
For the financial year ended March 2024, Net trading income increased by 85.0% to 4,287 million yen.
Details are as follow:
1) Equities
Increased by 123.4% to 3,678 million yen due increase in the trading value of foreign equities OTC trades.
2) Bonds
Increased by 68.4% to 203 million yen due increased handling of foreign bonds.
3) Others
Declined by 26.2% to 406 million yen due to decline in income from forex trades.
（Net financial income）
Net financial income increased by 54.9% to 593 million yen. Under this category, income increased by 46.4%
to 677 million yen due to increase in interest income, expenses increased by 5.6% to 84 million yen due toincrease in marginal trading expense.
（Other operating revenue and expenses）
Other operating revenues declined by 20.9% to 790 million yen due to an decline in sales of operational
investment securities. Other operating expenses increased by 52.0% to 704 million yen, mainly due to increasein cost of sales of operating investment securities.
（Selling, general and administrative expenses）
Selling, general and administrative expenses increased by 13.6% to 17,031 million yen due to increase inpersonnel expense and trade related expenses.
（Non-operating profit and losses）
Non-operating profit was 782 million yen. Under this category, income were 855 million yen including thedividend income of 445 million yen and profit distributions of 178 million yen. While expenses under thiscategory were 73 million yen including the interest expenses of 41 million yen and 16 million yen loss fromexchange rates.
（Extraordinary profit and losses）
Total extraordinary profit was 2,383 million yen. Under this category, income were 2,565 million yen including
the 2,532 million yen of gain from sale on investment securities. While losses were 181 million yen including2

the 62 million yen loss on settlement of investment securities and 76 million yen of impairment loss.
(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 were 124,119 million yen, a increase of 25,283 million
yen. This was due to increase of 9,849 million yen in cash and deposits; increase of 6,724 million yen in cash
segregated deposit for customers; increase of 1,517 million yen in margin transaction assets; and increase of
2,626 million yen in investment securities.
(Liabilities)
As of at the end of the period under review, total liabilities were 65,462 million yen, an increase of 20,657
million yen. This was due to a increase of 12,047 million yen in deposits received and an increase of 5,796
million yen in margin transaction liabilities.
(Net assets)
As for the period under review, total net assets were 58,657 million yen, a increase of 4,626 million yen. Thiswas due to increase of 2,036 million yen in retained earnings and increase of 2,757 million yen in valuationdifference on available-for-sale securities.
(3) Explanation of the cash flows

For the financial year ended March 2024, Cash and cash equivalents increased by 8,975 million yen to 22,709
million yen. Details are as follow:(Cash flow from operating activities)
Net cash provided by operating activities was 8,447 million yen. This was mainly due to an increase in cash
segregated as deposit for customers, deposits received and margin transaction liabilities.
(Cash flow from investing activities)
Net cash provided by investing activities was 1,478 million yen. This was mainly due to the purchase and sale ofinvestment securities.
(Cash flow from financing activities)
Net cash used in financing activities was 1,519 million yen. This was mainly due to payments towards long-termborrowings, buyback of shares and dividend payments.
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. Group tries to monitor and calculate
such market risks and its effects on the business results. Due to such nature of its business and consequential
difficulty in predicting its performance, the group does not disclose the forecast of business results. Instead ofit, 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.

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

As ofMarch 31,
2023

As of
March 31,2024

14,142
20,90820,9080
10,521
207
207
615
15,692
15,314
378
56
54
2
1,389
63,53323,991
27,632
27,632
0
11,291
232
232
1,326
17,20916,870
339
99
69
30
2,245
84,030

645
286
759
8,245
―
9,936

664
302
717
9,165
0
10,850

69
6
25
100

―
22
10
33

23,4391,075
742△325,25335,291

26,066
1,294
1,852
△11
29,201
40,0850
9
1098,835―
3
3
124,119

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
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net value)
Furniture & fixtures (net value)
Land
Rental real estate (net value)
OthersTotal 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
Organization expenses
Business commencement expenses
Total deferred assets
Total assets1

(million yen)

Liabilities
Current liabilities
Trading products
Trading securities and otherMargin 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

2

As of
March 31,
2023

As of
March 31,
2024

90
90
1,516
726
790
2,927
2,927
16,76014,359
2,400
5,099
6,445
145
311

―
―

7,312
6,505
807
1,401
1,401
28,80821,757
7,050
5,639
6,045
1,402
767

―

64

1,069
34,365

1,510
52,952

5,588
4,318
279
105
10,293

6,347
5,572
313
115
12,349146
146
44,804160
160
65,4628,000
8,186
33,447△5,471
44,1628,000
8,207
35,484△6,17945,513

6,579
329
△74
6,834
3,033
54,03098,835

9,337
746
58
10,141
3,002
58,657
124,119

(2) Consolidated statements of income and comprehensive income statement
Consolidated statements of income (For the year ended March 31, 2024)(million yen)

Year ended March
31, 2023
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
OthersTotal selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Profit distributions
Profit on investments in partnership
OthersTotal non-operating income
Non-operating expenses
Interest expense
Loss on foreign exchange rate
Amortization of deferred assets
Settlement expenses
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on redemption of investment securities
Reversal of reserve for financial instruments transaction liabilities
Gain on reversal of asset obligations
Compensation income from expropriation
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 settlement of investment securities
Loss on valuation of investment securities
Impairment loss
Provision of reserve for financial instruments transaction liabilities
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling owners
Profit (loss) attributable to owners of parent

3

Year ended March
31, 2024

8,971
2,318
463
999
12,75180
463
12,20813,224
4,287
677
790
18,98084704
18,191

2,599
7,550
1,478
2,130
361
349
520
14,991△2,782

3,350
8,911
1,378
2,414
216
311
448
17,031
1,159

28
449
416
0
65
960

158
445
178
―
72
855

23
38
7
10
9
89
△1,911

41
16
7
1
5
73
1,941

0
863
12
0
34
88
999

33
2,532
―
―
―
―
2,565

2
13
15
―
279
683
―
996
△1,907388
107
495△2,403△28△2,375

―
15
13
62
―
76
14
181
4,325
1,553
△110
1,443
2,882
△93
2,975

Consolidated comprehensive income statement (For the year ended March 31, 2024)(million yen)

Year ended March
31, 2023

Profit (loss)
Other 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

4

Year ended March
31, 2024△2,403

2,882

△811
592
△54
△273
△2,677

2,757
597
132
3,487
6,369

△2,997
320

6,282
87

(3) Consolidated statements of change in net assets(From April 1, 2022 to March 31, 2023)(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
periodDividendsofretained earnings
Net profit (loss)
attributabletoowners of parent
Purchaseoftreasury shares
Restricted shares
remuneration
Purchaseoftreasury sharesfor ESOP
Disposaloftreasury shares
Disposaloftreasury sharesfor ESOP

8,000

8,122

36,922△4,79048,254

7,391

Total net
assetsincome

85

△19

7,457

2,317

58,029△1,099△1,099△1,099△2,375△2,375△2,375

△684

△684

△684

37

44

44

△325

△325

△325

268

325

325

22

22

22

―

―

6

57

Change in retained
earnings within the
consolidated scope

Net change initems other thanshareholder’sequityTotal changes of
items during period
Balance at end ofcurrent period

Non-

Foreign currency Remeasurements accumulated
Total
difference on
controlling
Treasurytranslation
otherof defined
shareholder’savailable-for-saleinterests
sharesadjustment
comprehensive
benefits plan
equity

△811

244

△54

△622

716

93

―

63

△3,474△681△4,092

△811

244

△54

△622

716

△3,998

8,000

8,186

33,447△5,471

44,162

6,579

329

△74

6,834

3,033

54,0305

(From April 1, 2023 to March 31, 2024)(million yen)

Shareholder’s equity

Total accumulated other comprehensive income
Total

Valuation

Capitalstock

CapitalsurplusRetainedearnings

securities

Balanceatthebeginning of current
periodChanges of items
duringcurrent
periodDividendsofretained earnings
Net profit (loss)
attributabletoowners of parent
Purchaseoftreasury shares
Restricted shares
remuneration
Purchaseoftreasury shares for
ESOP
Disposaloftreasury shares
Disposaloftreasury shares for
ESOP

8,000

33,447△0△5,471

44,162

6,579

Total net
assetsincome

329

△74

6,834

3,033

54,030△1,003△1,003△1,003

2,975

2,975

2,975

△791

△791

△791

48

69

69

―

―

―

35

35

35

―

―

―

64

64

21

Change in retained
earnings within the
consolidated scope

Net change initems other thanshareholder’sequityTotal changes of
items during period
Balance at end ofcurrent period

8,186

Non-

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

65

2,757

416

132

3,307

△30

3,276

―

21

2,036

△707

1,350

2,757

416

132

3,307

△30

4,626

8,000

8,207

35,484△6,17945,513

9,337

746

58

10,141

3,002

58,657

6

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

Cash flows from operating activities
Profit (loss) before income taxes

Year ended
March 31, 2023

Year ended
March 31, 2024

△1,907

4,325

Depreciation
Amortization of goodwill

361
112

216
69

Impairment loss
Gain on reversal of asset retirement obligations

683
△34

76
―

△111
△27

454
64

Increase (decrease) in provision for bonuses
Increase(decrease) in provision for director’s bonuses
Increase (decrease) in provision share based
renumeration
Increase (decrease) in net defined benefit assets
Interest and dividend income

53

33

△92
△ 946

Interest expenses
Loss (gain) on sales of investment securities△77△1,299
126

△ 847

103

Loss (gain) on redemption of investment securities
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on investment in partnership
Income (loss) from expropriation
Decrease (increase) in cash segregated as deposits forcustomers
Increase (decrease) in advance paid
Increase (decrease) in trading products-assets
Increase (decrease) in trade date accrual
Increase (decrease) in operational investment
securities
Increase(decrease) in margin transaction assets
Increase (decrease) in real-estate rent
Increase (decrease) in the reserve for financial products
transaction liabilities
Increase (decrease) in deposits received

△12
279

△2,518
62
―

2
―

△33
15

△0
△88

―
―

2,510

△6,724

120

△ 43
△ 25

153
161

△710

△1,536△493

117△1,517△1,986△1,205△0

14△3,753

12,045

Increase (decrease) in trading products-liabilities
Increase (decrease) in margin transaction liabilities

△27
△274

△90
5,796

Increase(decrease) in loans secured by securities
Increase(decrease) in guarantee deposits received△1,873161△1,525539

Others△427△406

Subtotal△9,124

7,171

Interest and dividend income received
Interest expenses paid
Income received from expropriation
Income taxes paid

948

1,259

△103
88

△132
―
△ 330

Income taxes (paid) refund△1,31419

Net cash provided by (used in) operating activities△9,487

7

479
8,447

(million yen)

Year ended
March 31, 2023

Year ended
March 31, 2024

Payments into time deposits
Proceeds from withdrawal of time deposits

△409
460

△2,355
2,296

Purchase of sales of property, plant and equipment
Payments for retirement of tangible fixed assets△241―

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

38

△204
△15
20

△0

Proceeds from sale of intangible assets
Asset retirement obligations△6△76

Cash flow from investing activities

Purchase of investment securities
Proceeds from sale of investment securities

△11
―
△22

△1,822
2,003△1,609
3,100

734
―

237
314

0

―

Proceeds from collection of guarantee deposits
Proceeds from collection of loans

△16
72
0

△101
92
0

Acquisition of long-term prepaid expenses
Others

△263
1

△262
―

Net cash provided by (used in) investing activities

474

1,478

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

2,650
5,719

△400
1,150

△3,166△391

Proceeds from sales of treasury shares
Proceeds from non-controlling interests

△1
△ 684
22
1,021

△0
△791
35
236

Dividend to no-controlling interests
Cash dividends paid

△626
△1,108△354△1,004

3,824△1,519Proceeds from redemption of investment securities
Proceeds from the sale of real estate investments
Proceeds from dividends of investment in partnerships
Payment for guarantee deposits

Proceeds from long-term loans payable
Repayments on long-term loans payable
Repayments of lease obligations
Purchase of treasury shares

Net cash provided by (used in) financing activities
Difference in cash and cash equivalents

255

461

Increase (decrease) in cash and cash equivalents△4,932

8,868

Cash and cash equivalents at start of period
Change in cash and cash equivalents within the scope of
consolidation
Cash and cash equivalents at end of period

18,666

13,734―106

13,73422,7098

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

Not applicable.
(Additional information)
Introduction of ESOPThe 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 579 million yen for 881
thousand shares as of March 31, 2024. The book value and number of treasury stock were 615 million yen
and 935 thousand shares, respectively, at the end of the fiscal year ended March 2023.

9

(Segment information)
Under the holding company structure, group has segregated the business into 3 reportable segments of;“Financial instrument securities business”, “Asset management business” and “Investment business”.
The Group's reportable segments of business are subject to periodic review by the Board of Directors inorder to determine the allocation of management resources and evaluate their performance.
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. Profit (loss) of reportable segments are based on operating profit(loss). Inter-segment revenues and transfers are based on prevailing market prices.
(From April 1, 2022 to March 31, 2023)(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 clientsInter segment revenues
Total

11,511292

947

12,751―

12,751

10

5

32

48

△48

―

11,522298

979

12,800△48

12,751

Profit (loss)△2,733△130

206△2,657△125△2,782

Assets52,457

6,117

34,87993,454

5,381

98,835

Liabilities

34,94247

8,865

43,856948

44,804

Depreciation & amortization

309

3

5

318

42

361

Financial revenue

463

―

―

463

0

463

Financial expense

84

―

―

84

△4

80

Others

Notes:*1
1. The segment profit (loss) adjustment of △125 million yen includes 36 million yen in inter-segment eliminations and △162 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 5,381 million yen includes △43,621 million yen of offsetting elimination of inter-segment receivables and payables and 49,002
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 948 million yen includes △1,156 million yen of offsetting elimination of inter-segment receivables and payables and 2,104
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 (loss) is adjusted with operating loss in the consolidated statements of income.

10

(From April 1, 2023 to March 31, 2024)(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

17,920270

790

18,980―18,980

26

2

32

60

△60

―

Total

17,946272

822

19,041△60

18,980

Profit (loss)

1,521

△214

△221

1,085

73

1,159

Assets

71,677

6,142

41,263

119,083

5,035

124,119

Liabilities

51,242

76

11,372

62,6902,771

65,462

Depreciation & amortization

176

4

5

186

30

216

Financial revenue

677

―

―

677

0

677

Financial expense

88

―

―

88

△3

84

Inter segment revenues

Others

Notes:*1
1. The segment profit (loss) adjustment of 73 million yen includes 135 million yen in inter-segment eliminations and △62 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 5,035 million yen includes △43,819 million yen of offsetting elimination of inter-segment receivables and payables and 48,855
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 2,771 million yen includes △136 million yen of offsetting elimination of inter-segment receivables and payables and 2,907
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 (loss) is adjusted with operating loss in the consolidated statements of income.

11(Per share information)

Year ended March 31, 2023 Year ended March 31, 2024

Net assets per share

1,350.08 yen

1,498.42 yen

Net income per share△62.03 yen

79.39 yen

Notes:
1)
2)
3)

Diluted profit (loss) per share is 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 9,234,594 shares in the previous consolidated fiscal year and10,040,729 shares in the current consolidated fiscal year.

Year ended March 31, 2023 Year ended March 31, 2024

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

12△2,375

2,975

―

―

△2,375

2,975

38,291

37,484

(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 30, 2024. 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 300,000 shares (Within 0.8% of outstanding shares
excluding the treasury shares)
3) Value of treasury share:
Maximum of 500 million yen
4) Term for purchase:
From February 1, 2024 to June 30, 2024
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:
33,300 shares
3) Value of shares:
40 million yen
4) Buyback term:
From April 1, 2024 to April 22, 2024
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 22, 2024
is as follow:
1) Number of treasury shares purchase completed:
169,400 shares
2) Value of treasury shares purchase completed:
201 million yen

13

4. Supplementary information
Consolidated business results for the year ended March 31, 2024
(1) Commission receivedA) Breakdown of commission received(million yen)

Year ended March 31,
2023
(A)

Year ended March 31,
2024
(B)

Change
(B/A)

4,608
4,489
―
119

6,735
6,642
―
93

146.2%
148.0%
―
78.1%

40

10

25.2%

38
2

9
1

23.4%
59.4%

1,895

2,636

139.1%

2,426
8,971

3,842
13,224158.3%
147.4%

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,
2023
(A)

EquitiesYear ended March 31,
2024
(B)

Change
(B/A)

4,567

6,727

147.3%

2

1

56.7%

Beneficiary securities

3,169

4,275

134.9%

Others

1,232

2,220

180.2%

8,971

13,224147.4%

Bonds

Total

(2)

Net trading income(million yen)

Year ended March 31,
2023
(A)

Year ended March 31,
2024
(B)

Change(B/A)

Equities etc.

1,646

3,678

223.4%

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

671
120
550
2,318

609
203
406
4,287

90.8%
168.4%
73.8%
185.0%

14

(3)Comparative quarterly consolidated statements of income(million yen)

FY 2023

Operating revenue
Commission received
Brokerage commission
Commission from underwriting,secondary distribution and solicitation
towards professional investors
Fee from offering, secondary distribution
and solicitation towards professional
investors

Other fees 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
Non-operating expenses
Ordinary profit (loss)
Extraordinary income
Extraordinary losses
Profit (loss) before income taxes
Income tax expenses
Profit (loss)
Profit (loss) attributable to noncontrolling interests
Profit (loss) attributable to owners ofparentFY 2024

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

2,010
1,060

2,142
1,080

2,492
1,226

2,326
1,240

2,983
1,680

3,409
1,685

2,954
1,423

3,877
1,945

1

31

2

5

4

1

2

1

363

416

672

443

507

740

672

716

584
560
93
81
2,746
17
51
2,676

613
745
116
195
3,199
16
283
2,899

590
441
114
352
3,401
18
△29
3,412

637
570
137
369
3,404
26
158
3,219

790
1,267
127
209
4,588
24
41

855
969
145
126
4,195
16
254

4,522

981
948
181
149
4,688
17
203
4,467

3,923

1,213
1,102
223
304
5,507
25
204
5,277

605
1,958
350
517
75
82

619
1,930
414
496
107
77

625
1,884
359
539
86
87

749
1,776
353
576
93
101

736
2,094
350
569
48
31

834
2,318
344
571
49
77

793
2,097
333
618
53
117

986
2,400
350
655
64
84

―

―

―

―

―

―

―

―

114

128

133

145

126

121

109

91

3,705

3,773

3,716

3,795

3,958

4,317

4,123

4,632

△1,028
281
6
△753
259
283
△778
131
△909

△874
46
18
△846
326
18
△539
26
△566

△303
199
5
△110
156
△265
312
63
249

△576
433
58
△201
257
959
△902
274
△1,177

564

149

△199

279
13

83
13

274
15

830

220

58

156
15

198
1

203
13

971

418

248

259

246

59

711

171

189

645
217
30
832
2,006
151
2,687
877
1,810

△12

△8

1

△9

△22

△18

△21

△29

△897

△558

247

△1,168

734

190

211

1,840

15

5.

Separate financial statements and major notes(1) Balance sheet(million yen)

As ofMarch 31,
2023

As of
March 31,
2024

1,635
1,040
96
40
151
11
2,975

1,478
40
278
46
11
34
1,889

127
77
50
255

116
55
46
218

14
2
16

―
1
1

4,239
41,141393
26△345,796
46,06849,044

5,556
40,839419
28△346,83947,06048,950AssetsCurrent assets
Cash and deposit
Short-term loans to affiliated companies
Advance payments
Prepaid expenses
Accounts receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Building (net amount)
Equipment (net amount)Land
Total property, plant and equipment
Intangible assets
Leasehold right
SoftwareTotal intangible assets
Investments and other assets
Investment securities
Shares of affiliated companies
Long-term guarantee deposits
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

16

(million yen)

Liabilities
Current liabilities
Deposits received
Short-term loans payable
Accounts payable
Accrued expenses
Income taxes payable
Provision for director bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Long-term deposits received
Total non-current liabilities
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
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

17

As of
March 31,
2023

As of
March 31,
2024

46
1,000
49
10
33
―
21
1,161

69
1,400
61
20
54
61
21
1,688

500
439
5
944
2,105

500
714
5
1,219
2.908

8,000

8,000

7,863
357
8,220

7,863
379
8,242

3,202

3,202

26,0005,727
34,930△5,47145,67926,0004,777
33,980△6,17944,043

1,258
1,258
46,93849,044

1,997
1,997
46,041
48,950(2) Statements of income(million yen)

Year ended March
31, 2023
Operating revenue
Management advisory fee
Interest from lending to affiliated companies
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
OthersTotal selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Real estate rental income
Dividend income
Dividend income from share lending of affiliated companies
Insurance income
OthersTotal non-operating income
Non-operating expenses
Interest paid
Commission for purchase of treasury shares
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on reversal of asset retirement obligations
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)

18

Year ended March
31, 2024

811
31
1
844
―
844

813
0
1
815
―
815

9
462
180
94
44
74
29
894
△50

7
561
105
86
33
△14
31
811
4

13
54
76
―
12
156

0
60
62
20
11
154

12
2
14
91

8
2
11
147

―
199
34
234

2
―
―
2

279
0
280
45
60
△16
44
1

―
14
14
135
81
0
81
53