Japan Exchange : Earnings Release, Q1 FY2023

(Reference Translation)

July 28, 2023

Japan Exchange Group, Inc. and Consolidated Subsidiaries

Consolidated financial results for the three months ended June 30, 2023

(Based on IFRS), unaudited

Company name:	Japan Exchange Group, Inc.	Stock Exchange Listings: Tokyo
Code number:	8697	URL: https://www.jpx.co.jp/english/
Representative:	Yamaji Hiromi, Director & Representative Executive Officer, Group CEO
Contact:	Lin Kay, Executive Officer (Corporate Communications and Investor Relations)
Scheduled date of filing of quarterly report:	August 10, 2023
Scheduled date of start of dividend payment:	－
Preparation of 1Q earnings presentation material:	Yes
Holding of 1Q earnings announcement:	None

1. Consolidated financial results for three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(Figures less than a million yen are omitted)

(1) Consolidated operating results (cumulative)

(Percentages represent changes year on year)

Operating

revenue

Operating

income

Income before

income tax

Net income

Net income

attributable to owners of the parent company

Comprehensive

income

	Mil. yen		%	Mil. yen	%		Mil. yen	%		Mil. yen		%	Mil. yen	%		Mil. yen	%
Three months ended	36,953		10.1	25,038		40.8		25,068	40.9		18,046		46.2	17,736		46.7		18,069	46.1
June 30, 2023
Three months ended	33,576		3.3	17,777		(3.7)		17,790	(3.7)		12,342		(1.4)	12,089		(1.6)		12,364	(2.8)
June 30, 2022
	Basic earnings		Diluted earnings
		per share					per share
				yen					yen
Three months ended				34.08					－
June 30, 2023
Three months ended				22.93					－
June 30, 2022
(2) Consolidated financial position
											Total equity attributable to		Ratio of total equity
												attributable to owners of
	Total assets			Total equity			owners of the parent
						the parent company to
												company
															total assets
				Mil. yen					Mil. yen				Mil. yen					%
As of June 30, 2023		74,174,323			317,374					307,988					0.4
As of March 31, 2023		82,187,392			321,809					312,734					0.4

Note: Sizable amounts of "clearing business financial assets and liabilities" and "deposits from clearing participants" pertaining to the clearing business conducted by consolidated subsidiary Japan Securities Clearing Corporation are included in assets and liabilities of JPX Group (meaning JPX and its subsidiaries). For JPX Group's financial position excluding "clearing business financial assets and liabilities" and "deposits from clearing participants," etc., see "1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION - (2) Explanation on Financial Position" on page 4 of the Appendix.

2. Dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	yen	yen	yen		yen	yen
Year ended	－	26.00	－		37.00	63.00
March 31, 2023
Year ending	－
March 31, 2024
Year ending March 31,		28.00	－		29.00	57.00
2024 (Forecast)

Note 1: Change in dividends forecast from the most recent announcement: None

Note 2: Breakdown of year-end dividend for the fiscal year ended March 31, 2023: ordinary dividend ¥27; commemorative dividend ¥10.

3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024) (Percentages represent changes year on year)

												Net income
	Operating		Operating		Income before	Net income	attributable to	Basic earnings
	revenue		income		income tax		owners of the	per share
												parent company
	Mil. yen		%	Mil. yen		%	Mil. yen		%	Mil. yen	%	Mil. yen	%	yen
Year ending	134,500		0.4	68,500		0.4	68,500		0.4	49,800	5.5	49,000	5.7	94.19
March 31, 2024

Note: Change in earnings forecast from the most recent announcement: None

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of consolidation): None
2. Changes in accounting policies/changes in accounting estimates

1. Changes in accounting policies due to revisions in accounting standards under IFRS: None
2. Changes in accounting policies other than the above: None
3. Changes in accounting estimates: None

1. Number of issued shares (common shares)

1. Number of issued shares at the end of the period (including treasury shares):

	As of June 30, 2023:	528,578,441
	As of March 31, 2023:	528,578,441
2)	Number of treasury shares at the end of the period:
	As of June 30, 2023:	8,384,491
	As of March 31, 2023:	6,891,928
3)	Average number of shares:
	Three months ended June 30, 2023:	520,398,562
	Three months ended June 30, 2022:	527,204,054

• This release is outside the scope of the quarterly review by certified public accountants and audit firms.
• Explanation on appropriate use of forecast and other special items

This material contains an earnings forecast and other forward-looking statements which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors may cause actual results, etc. to be materially different from those expressed in these forward-looking statements.

DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Japan Exchange Group, Inc., and/or its affiliates shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

(Appendix)

Contents of Appendix

1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION …2
2. 1. Explanation on Operating Results …2
   2. Explanation on Financial Position …4
   3. Explanation on Forecast Information such as Consolidated Earnings Forecast …5
3. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES …6
4. 1. Condensed Consolidated Statement of Financial Position …6
   2. Condensed Consolidated Statement of Income …8
   3. Condensed Consolidated Statement of Comprehensive Income …9
   4. Condensed Consolidated Statement of Changes in Equity …10
   5. Notes on Condensed Consolidated Financial Statements …12

(Note on Going-Concern Assumption) …12 (Operating Revenue) …12

(Operating Expenses) …12

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1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION

1. Explanation on Operating Results

During the consolidated cumulative first quarter (from April 1, 2023 to June 30, 2023), JPX Group recorded operating revenue of ¥36,953 million (increased 10.1% from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥17,135 million (increased 4.5% year on year). As a result, JPX Group recorded operating income of ¥25,038 million (increased 40.8% year on year) and income before income tax of ¥25,068 million (increased 40.9% year on year).

In addition, net income attributable to owners of the parent company after tax was ¥17,736 million (increased 46.7% year on year).

(Operating revenue)

1) Trading services revenue

Trading services revenue is comprised of "transaction fees" based on the value of cash equities traded or volume of financial and commodity derivatives traded, "basic fees" based on the types of the trading participant's trading qualification, "access fees" based on the number of orders, "trading system facilities usage fees" based on the types of trading system facilities used, and other similar fees.

During the consolidated cumulative first quarter, trading services revenue increased 12.2% year on year to ¥15,118 million due mainly to an increase in revenue from transaction fees resulting from a year-on-year increase in trading value of cash equities.

Breakdown of trading services revenue

			(Mil. yen)
	Three months ended	Three months ended
	June 30, 2022	June 30, 2023
			Change (%)
Trading services revenue	13,479	15,118	12.2
Transaction fees	10,944	12,606	15.2
Cash equities	7,898	9,280	17.5
Financial derivatives	2,694	2,959	9.8
TOPIX Futures	505	566	12.1
Nikkei 225 Futures*	1,184	1,179	(0.5)
Nikkei 225 Options**	534	790	48.0
10-year JGB Futures	417	376	(9.9)
Others	52	46	(10.8)
Commodity derivatives	352	366	4.2
Basic fees	248	245	(1.1)
Access fees	1,341	1,296	(3.3)
Trading system facilities usage fees	916	940	2.6
Others	28	28	2.9

*Figures include Nikkei 225 mini Futures. **Figures exclude Nikkei 225 Weekly Options.

2) Clearing services revenue

Clearing services revenue is comprised of clearing fees related to the assumption of obligations of financial instrument transactions carried out by Japan Securities Clearing Corporation and other similar fees.

During the consolidated cumulative first quarter, clearing services revenue increased 9.6% year on year to ¥7,974 million.

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