Ichiyoshi Securities : IR Presentation for Fiscal year ending March 2021

Stock Code：8624

IR Presentation

for Fiscal year ending March 2021

Ichiyoshi Securities Co., Ltd.

April, 2021

Ⅰ : Business Result (Consolidated)

1. Profit and Loss

• Operating revenue amounted to 19,747 million yen, an increase of 901 million yen (up 4.8%) from the year-earlier period.
• Current income amounted to 1,300 million yen, an increase of 1,770 million yen from the year-earlier period.
• Net income attributable to owners of parent amounted to 1,001 million yen, an increase of 1,725 million yen from the year-earlier period.

				(JPY mil.)
	FY 2019	FY 2020	Year-on-	Year-on-
	year (%)	year
Operating revenue	18,846	19,747	4.8%	901
Net operating revenue	17,241	18,200	5.6%	958
Operating cost	17,786	16,935	-4.8%	-850
& expenses
Operating income	-545	1,264	－	1,809
Current income	-469	1,300	－	1,770
Extraordinary income	20	13	-36.3%	-7
& loss
Income taxes	264	312	18.2%	48
Net income attributable	-724	1,001	－	1,725
to owners of parent

				(JPY mil.)
	FY 2020
1Q	2Q		3Q	4Q
4,182	4,588		5,198	5,777
3,792	4,223		4,808	5,375
4,174	4,223		4,272	4,266
-381	0		535	1,108
-365	-12		566	1,111
103	-0		-12	-77
139	-71		99	144
-401	58		454	889

1

2. Breakdown of Net Operating Revenue

• Commissions amounted to 17,608 million yen, an increase of 762 million yen (up 4.5%) from the year-earlier period, mainly increased in brokerage commissions.

(JPY mil.)

(JPY mil.)

	FY 2019	FY 2020	Year-on-	Year-on-
	year (%)	year
Commissions	16,845	17,608	4.5%	762
Gains on trading	89	310	245.3%	220
Other operating	141	144	1.9%	2
balance
Interest & dividend	163	136	-16.7%	-27
income
Total	17,241	18,200	5.6%	958

FY 2020

1Q	2Q	3Q	4Q
3,689	4,136	4,639	5,142
28	24	98	159
43	28	34	37
31	34	35	35
3,792	4,223	4,808	5,375

2

3. Breakdown of Commission Revenue

• Brokerage commissions on stocks amounted to 6,026 million yen, an increase of 1,281 million yen (up 27.0%) from the year-earlier period. Commissions from distribution of investment trusts amounted to 3,442 million yen, a decrease of 434 million yen (down 11.2%) from the year-earlier period. Commissions from other sources (mainly trailer fees on investment trusts) amounted to 6,680 million yen, a decrease of 52 million yen (down 0.8%) from the year-earlier period.
• Commissions from underwriting amounted to 496 million yen, a decrease of 60 million yen (down 10.9%) from the year-earlier period, as the Company participated in the management and underwriting of 31 initial public offerings (of which 4 was lead-managed) and 6 public share offering in the secondary market.

				(JPY mil.)
	FY 2019	FY 2020	Year-on-year	Year-on-year
	(%)
Commissions	16,845	17,608	4.5%	762
Brokerage (Major item)
Stocks	4,745	6,026	27.0%	1,281
Distribution (Major item)
Investment trusts	3,876	3,442	-11.2%	-434
Underwriting (Major items)
IPO	495	379	-23.4%	-116
PO	61	117	89.9%	55
Total	557	496	-10.9%	-60
Commissions from other sources (Major items)
Investment trusts	6,733	6,680	-0.8%	-52
(trailer fees, etc.)
Other than	661	693	4.9%	32
investment trusts
Total	7,394	7,374	-0.3%	-19
＜Reference＞				(JPY 100 mil.)
Fund distribution	2,435	2,213	-9.1%	-221

* Including wrap-account fund sales

				(JPY mil.)
	FY 2020
1Q	2Q		3Q	4Q
3,689	4,136		4,639	5,142
1,260	1,353		1,678	1,734
654	771		964	1,051
4	155		91	128
1	76		10	28
5	231		102	156
1,467	1,593		1,722	1,897
129	161		135	266
1,596	1,755		1,858	2,163

3

4. Breakdown of Gains or loss on Trading

• Net gains on trading amounted to 310 million yen, an increase of 220 million yen (up 245.3%) from the year-earlier period, chiefly as net trading income on stocks, etc. increased.

				(JPY mil.)
	FY 2019	FY 2020	Year-on-	Year-on-
	year (%)	year
Stocks, etc.	37	171	355.4%	134
Bonds ・F orex, etc.	52	138	165.9%	86
(Bonds, etc.)	(27)	(24)	-10.8%	-2
(Forex, etc.)	(25)	(114)	355.6%	89
Total	89	310	245.3%	220

				(JPY mil.)
	FY 2020
1Q	2Q		3Q	4Q
17	15		76	62
11	9		22	96
(7)	(4)		(6)	(5)
(3)	(4)		(15)	(91)
28	24		98	159

4

5. Operating Cost and Expenses

• Operating cost and expenses amounted to 16,935 million yen, a decrease of 850 million yen (down 4.8%) from the year- earlier period, mainly decreased in transaction related expenses.

				(JPY mil.)
					(JPY mil.)
	FY 2019	FY 2020	Year-on-	Year-on-	20,000
	year (%)	year
				17,786
						16,935
Transaction related	2,004	1,532	-23.6%	-472		650
expenses		255 536	667
					274
						2,308	528
Personnel expenses	9,488	9,224	-2.8%	-263	15,000
	2,290
Property related	2,542	2,417	-4.9%	-125		2,542
expenses			2,417
Clerical expense	2,308	2,290	-0.8%	-17	10,000
Depreciation	536	528	-1.5%	-8
Public charges	255	274	7.4%	18		9,488	9,224
Provision of allowance					5,000
－	0	－	0
for doubtful accounts
Others	650	667	2.6%	16
						2,004	1,532
Total	17,786	16,935	-4.8%	-850
0
						FY 2019	FY 2020
＜Reference＞ FY 2020 fixed cost and variable cost (non-consolidated basis)		Transaction related expenses	Personnel expenses
Fixed cost	12,737					Property related expenses	Clerical expenses
						Depreciation	Public charges
Variable cost	3,388					Others
	(JPY mil.)
								5

(JPY mil.)

60,000

6. Balance Sheets/Financial Result

Balance Sheets

Total Assets

Fixed assets		Current assets

Financial Result

50,000

40,000

30,000

20,000

10,000

0

(JPY mil.)

60,000

50,000

40,000

30,000

20,000

10,000

0

49,211

43,530

42,873

36,862

6,668	6,338
FY 2019		FY 2020

Sum of Liabilities and Net Worth

Net worth		Liabilities

49,211

43,530

20,103

14,757

28,77229,108

Increase in cash and deposits, margin transaction assets

Decrease in tangible fixed assets

Increase in cash payable to customers and margin transaction liabilities

Increase in net income, remeasurements of defined benefit plans

Decrease due to dividend payments.

	FY 2020	Change from
	FY 2019 end.
Equity ratio	59.0	-6.9
(%)
Net worth per share (JPY)	804.07	6.95
Capital adequacy ratio
(non-consolidated basis)	450.1	3.3
(%)
	FY 2020	Year-on-year
EPS (JPY)	27.79	45.51

ROE (%)

3.5

－

FY 2019

FY 2020

6

Ⅱ：Business Circumstances

1. Commission Revenue

(JPY mil.)

6,000	Investment trusts (trailer fees, etc.)	Distribution	Brokerage	Underwriting and others
	5,389
		5,202										5,142
	325
5,000		315	4,843									460
											4,639
			486			4,293		4,352			273
					4,124		4,074			4,136
						346
4,000	2,167				242		615
1,901		3,769		286		418
			3,689		1,734
			1,704	292					306		1,678
					1,116
					1,281
						1,163	1,183
3,000									1,353
			1,247
								1,260
	1,136	1,194				1,137						1,051
		928			874				964
				921
					943
2,000
								771
			621
								654
1,000	1,759	1,791	1,724				1,749				1,722	1,897
	1,608	1,679	1,692	1,611		1,593
	1,467
0
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	FY 2018				FY 2019				FY 2020
												7

2. Customer Assets in Custody

		Investment trusts	Stocks	Others
(JPY 100 mil.)					19,740									19,895
							19,665
20,000							19,171		19,400
							897						708
							998							538
										433			17,929
												17,75017,479
18,000													588
										16,504	450	565
								15,902	508						15,360
16,000
								1,076	14,777
							14,306							601
								13,697	642
								9,574						9,971
14,000							1,069	13,467	9,947
									12,744		10,175
							11,303	1,142
							996		9,252
													9,013
									11,775	863			8,974
12,000							11,192
							6,567 1,065	8,397						7,382
							966
									7,132
10,000			8,178				7,761		5,720	5,814
								4,666	5,734
8,000
		808	6,862 6,711 6,975 5,911
				570	559	581
6,000			5,271
				3,019		9,093				8,791		8,685	9,215
	4,194 1,231 4,829					7,599		8,048	8,327
		3,410		8,259
4,000				3,813		7,540	6,834	7,003			7,939		7,377
1,390				5,476		6,6576,147
			2,701				4,315		6,044
					3,375
2,000		1,833
	2,541	2,742
			1,339	2,479
0	971
FY '97	FY '98 FY '99	FY '00	FY '01 FY '02	FY '03 FY '04 FY '05	FY '06	FY '07 FY '08 FY '09	FY '10 FY '11 FY '12 FY '13		FY '14 FY '15	FY '16		FY '17 FY '18 FY '19 FY '20

8

3. Quarterly Customer Assets in Custody

(JPY 100 mil.)	Investment trusts		Stocks	Others
22,000			19,395	19,627																				19,895
20,000
		564										18,823					18,446	18,817	708
			539
					17,929			17,963	569
18,000								17,535			17,305	764	718
					16,971				552
					588	558
						575										809
															15,360
16,000
																	601
14,000			10,195	10,116										9,391							9,358	9,971
								9,013			8,905					9,344
								8,728					8,455
12,000						8,478
														7,382
10,000
8,000
6,000			8,660	8,946			8,327	8,248	8,504	8,863					8,337	8,739	9,215
4,000			7,917			8,040
							7,377
2,000
0
		1Q		2Q		3Q			4Q		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
			FY 2018									FY 2019								FY 2020

9

4. Trend of Investment Trust Trailer Fees and Its Cost Coverage (Month-end Average)

	Investment trust trailer fees ＋ wrap-account fees		Parent company	Consolidated
Note: Cost coverage ratio ＝	× 100 (%)	basis	basis
Cost (operating cost & expenses)

(JPY mil.)

1,600		Cost (left axis)							1,497 1,529																45%
																	1,494 1,476 1,482
		Investment trust trailer fees
						1,403																1,411
		+ wrap-account fees (left axis)					1,360							1,388	1,36237.2%	38.9%	40%
1,400
	Cost coverage ratio (right axis)											1,295				39.4%
									1,285
					1,213							34.1%	1,212				1,244							37.9%		35%
							1,171
1,200													1,151					32.6%
		1,122										1,116 1,119
			1,105
								29.9%				30.5%
							1,054								31.8%		31.7%						30%
1,000	957	955										29.6%	29.5%	28.7%		29.1%
			905													27.6%
								24.8%
																										25%
800
																												20%
									19.1%															573	561
600																							555	556
											521
																											15%
								15.7%											452
									447
																			432
													403						412
400							11.9%		348			357	351		362
																321	308										10%
					7.8%	8.6%		245
							184
200	4.4%		4.0%	6.4%
		125																				5%
		3.1%				95
				94
			71
	42	29	35
0	FY '96	FY '97	FY '98	FY '99	FY '00	FY '01	FY '02	FY '03	FY '04	FY '05	FY '06	FY '07	FY '08	FY '09	FY '10	FY '11	FY '12	FY '13	FY '14	FY '15		FY '16	FY '17		FY '18	FY '19	FY '20	0%
																												10

5. Quarterly Trend of Investment Trust Trailer Fees and Its Cost Coverage

Note: Cost coverage ratio ＝ Investment trust trailer fees ＋ wrap-account fees × 100 (%)

Cost (operating cost & expenses)

(JPY mil.)		Cost (left axis)	Investment trust trailer fees + wrap-account fees (left axis)	Cost coverage ratio (right axis)
5,000													50%
4,500	4,568	4,481	4,504		4,459	4,541	4,364	4,420
						4,272	4,266
								4,223
				4,158					4,174
4,000												44.5%	45%
3,500
		40.0%					40.1%				40.3%
3,000	38.5%			38.7%									40%
		38.3%
				37.7%					37.7%
					37.3%
							36.5%
2,500
									35.2%
2,000	1,759	1,791	1,724				1,749				1,722	1,897	35%
		1,679	1,692
		1,608	1,611		1,593
							1,467
1,500
1,000													30%
500
0													25%
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	FY 2018				FY 2019				FY 2020
													11

6. Top 5 Best Selling Investment Trust Funds (Total Amounts of 3 Months)

											(JPY 100 mil.)
		FY 2018			FY 2019			FY 2020
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Ichiyoshi Small and mid cap Growth Companies Fund	181	121	43	40	20							54
Ichiyoshi SDGs Small Medium Size Equity Fund										84	76	43
Fidelity US REIT Fund (A/B/C/D)						34	29		20	25	25	31
Pictet Global Income Equity Fund (Monthly Dividend)	17	35	39	38	78	116	93	80	43	35	44	31
GS US Growth Equity Concentrate Investment Fund （Monthly Settlement/								36	23	13		31
Quarterly Settlement/Semi-Annual Settlement）
Ichiyoshi Japan Growth Equities Fund											55
US NASDAQ Open (A/B)									26	36	22
Shinko J-REIT Open	79	133	84	61	77	71	37		32
Tokio Marine JPY Asset Balance Fund (Monthly Settlement/Yearly						95	125	80
Settlement)
LM Australia High Yield Equity Fund (Monthly Dividend)					25	42	28	32
Ichiyoshi Japan Venture Fund								31
US Micro Cap Equity Fund					40
JREIT Asia Mix Open (Monthly Settlement/Asset Growth Type)				16
Japan Recover Growth Equity Fund	21	27	65	13
100-Year-Life World Allocation Fund (3% Target Receivable Type/		45	37
6% Target Receivable Type/Asset Growth Type)
Nomura PIMCO World Income Strategy Fund (A/B/C/D)	17

12

7. Number of Customer Accounts 【Retail】

(Accounts)

(Accounts)

Total No. of accounts of assets in custody (left-hand scale)

200,000	No. of accounts with more than JPY 10 mil. (right-hand scale)						50,000
180,000
159,172	157,679	157,897	156,513	156,200	156,201	156,044	156,608	156,863	157,123	156,955	154,902	40,000
160,000
140,000
33,846	33,858
120,000			31,171	30,463	30,945	31,979				30,530	32,187	30,000
		29,895
						29,120	29,468
100,000							26,797
80,000												20,000
60,000
40,000												10,000
20,000
0												0
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
FY 2018				FY 2019				FY 2020
												13

	8. Accumulated Companies Lead- and Co-managed
(Companies)													(Companies)
1,200	Accumulated companies lead-andco-managed(left-hand scale)
												1,151	70
	Of which, number of accumlated companies lead-managed(right-hand scale)
				1,117
												1,082
												1,044	60
												1,013	60
1,000												980	56
											940
											905	52
										869
								832	846		50
						821	828
					812					50
				783
800											45
			743
											42
				710
				663										40
				620
											35
600				580
									32
			511						29	29
						27	27	27				30
		443			26
			25
400	386			23
346			20
	299													20
				15
200				10
			7	8										10
	2	3
0														0

FY '96 FY '97 FY' 98 FY '99 FY '00 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

14

9. Quarterly Accumulated Companies Lead- and Co-managed

(Companies)											(Companies)
	Accumulated companies lead-andco-managed(left-hand scale)
	Of which, number of accumlated companies lead-managed(right-hand scale)
											1,151
1,150										1,142
									1,132		60
								1,120
							1,117			60
						1,106				59
					1,094
1,100				1,087				58
			1,082
		1,071
1,053	1,060						56	56
								55
1,050
					54	54
				53
1,000		52	52
51	51										50
950
900											45
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
FY 2018				FY 2019				FY 2020
											15

Disclaimer

・This document is produced by Ichiyoshi Securities Co., Ltd. (the "Company"), and nothing in this document shall be considered as an offer to sell or solicit an offer to buy any security, or other instrument, including securities issued by the Company.

・This document is based on Japanese accounting standards.

・No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written permission of the Company.

・This document is based on the data as of March 31, 2021. (Figures less than one million yen are rounded down)

Ichiyoshi Securities Co., Ltd.

Financial instruments business operator registered with the Kanto Local Finance Bureau (registration No. 24)

Member association: Japan Securities Dealers Association

Japan Investment Advisers Association