Japan Exchange : Explanatory Material, Q3 FY2020

Overview of Earnings for Q3 FY2020

Total smart exchange

Japan Exchange Group, Inc.

January 28, 2021

© 2021 Japan Exchange Group, Inc.

C o n t e n t s

• Overview of Earnings for Q3 FY2020 〔IFRS〕

• Reference Materials

© 2021 Japan Exchange Group, Inc.

I. Overview of Earnings for Q3 FY2020 〔IFRS〕

(April 1, 2020 - December 31, 2020)

* This document is not subject to the review procedures required under the Financial Instruments and Exchange Act.

Please note that its contents have not been reviewed on a consolidated basis in accordance with the Act as of the time of disclosure.

© 2021 Japan Exchange Group, Inc.

Market Trends (Cash Equities)

Cash Equities Average Daily Trading Value (April 2018 - December 2020)

(JPY tril.)

6.0FY2018FY2019FY2020

5.0																																																	5.0
													3.9																																																4.1
4.0			3.4						3.6				3.5																									3.6	3.3	3.5	3.6							3.2
							3.5
3.3			3.2	3.1	2.9								3.0	3.1	3.1	2.9	3.2					3.1	2.9	3.1			2.9									3.0	3.0	3.2	2.8
3.0																													2.5	2.5	2.7							2.6
2.0
						Cash Equities
1.0							1st Section
								(auction of domestic equities)
0.0
	2018																						2019																										2020
		Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.		Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Average Daily Trading Value by Market Division (JPY)

				FY2018	FY2019				FY2020
				Annual Ave.	Annual Ave.		Q3 Ave.		Q3 FY2019 Ave.	y/y
		1st Section Domestic Equities		2,461.3 bil.	2,249.9 bil.		2,295.5 bil.		2,083.1 bil.	+ 10.2%
Auction	ETFs / ETNs		198.0 bil.	211.5 bil.		277.4 bil.		155.4 bil.	+ 78.5%
		Markets for Emerging Companies		155.4 bil.	135.9 bil.		269.1 bil.		133.5 bil.	+ 101.6%
		(JASDAQ & Mothers)
		Off-auction		422.1 bil.	392.4 bil.		370.5 bil.		380.7 bil.	(2.7%)
Cash Equities (auction/off-auction) Total*		3,306.8 bil.	3,081.1 bil.		3,313.0 bil.		2,831.6 bil.	+ 17.0%

* Total value of daily averages of auction and off-auction trading of common stocks on 1st/2nd Sections, Mothers, JASDAQ, TOKYO PRO Market, and ETFs/ETNs, REITs etc.

© 2021 Japan Exchange Group, Inc.	4

Market Trends (Derivatives)

Nikkei 225mini Average Daily Trading Volume (April 2018 - December 2020)

(Trading volume : 10,000 contracts)		(Nikkei VI)
		FY2018	FY2019	FY2020
350						60.00

300															301
																			50.00
250			Nikkei 225mini																40.00
			(Ref.) Nikkei VI (ave.)											187
200				168
													159
																		30.00
150				108	110	133				127	131			116	133 127				119
	95	90	91	110	98	105		99	92	95	87	104	98	99		20.00
100	86			84	84	81	72
	68										73
50																				10.00
0	2018						2019								2020					0.00
	Apr. May Jun. Jul. Aug.Sep. Oct. Nov.Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.Sep. Oct. Nov.Dec. Jan. Feb. Mar Apr. May Jun. Jul. Aug.Sep. Oct. Nov.Dec

Average Daily Trading Volume/Value of Major Products

		FY2018	FY2019			FY2020
		Annual Ave.	Annual Ave.		Q3 Ave.	Q3 FY2019 Ave.	y/y
TOPIX Futures		103,896 contracts	121,034 contracts		100,657 contracts	109,773 contracts	(8.3%)
Nikkei 225 Futures (Large)		99,939 contracts	110,041 contracts		93,348 contracts	90,810 contracts	+ 2.8%
Nikkei 225 mini		1,051,071 contracts	1,227,800 contracts		1,096,650 contracts	967,549 contracts	+ 13.3%
Nikkei 225 Options*		JPY 23.0 bil.	JPY 26.8 bil.		25.5 JPY bil.	JPY 19.0 bil.	+ 34.2%
10-year JGB Futures		42,087 contracts	39,640 contracts		26,072 contracts	39,499 contracts	(34.0%)
Total Trading Volume for Financial Derivatives		364 mil. contracts	412 mil. contracts		276 mil. Contracts	255 mil. contracts	+ 8.0%
Total Trading Volume for Commodity Derivatives		21.07 mil. contracts	21.42 mil. contracts		14.76 mil. contracts	14.37 mil. contracts	+ 2.7%
* Excluding Weekly Options.

© 2021 Japan Exchange Group, Inc.	5

Operating Revenue

• Revenues from trading services and clearing services increased due to an increase in cash equities trading.
• Revenue from listing services increased due to growth in ETF AUM and an increase in the amount raised by listed companies.
• Revenue from information services grew due mainly to an increase in market data usage fees resulting from increased market data usage, etc.
• Other operating revenues decreased due to a decline in income from service provision, such as that for trading systems due to the business integration with TOCOM.

		Clearing	Listing	Information		(JPY mil.)
	Trading	Services
	Services	Services		97,273
	+1,680
	Services	+2,086	+827
87,433	+5,703				Other
				(457)
		-	Initial/additional listing fees: +325		y/y
		-	Annual listing fees: +502		+9,839	(+11.3 %)
-	Cash equities: +4,691
-	Financial Derivatives: (165)
- Effects from consolidation of TOCOM: +1,176
Q3 FY2019						Q3 FY2020
(Apr. - Dec.)						(Apr. - Dec.)

© 2021 Japan Exchange Group, Inc.	6

Operating Expenses

• Personnel expenses increased due to effects from the business integration with TOCOM, as well as implementation of various measures against Covid-19.
• System maintenance & operation expenses and depreciation & amortization increased due mainly to development of the Kansai backup center and effects from the business integration with TOCOM.

- Effects from business integration with TOCOM		System	Depreciation &
- Increased expenses for measures against Covid-19		Maintenance &
		Operation	Amortization
Real Estate-	Expenses	+838
related Expenses *	+1,104
+66

42,018

Personnel	- Development of Kansai backup center
Expenses	-	Effect from business integration with TOCOM
+1,432	-	Improvement of internal system including promotion
	of remote working

Other

(407)

y/y

+3,033 (+7.2%)

(JPY mil.)

45,052

• Development of Kansai backup center
• Response to product transfer from TOCOM to OSE (Jul. 2020)

Q3 FY2019	*With the new accounting standard for leases under IFRS applied from FY2019, a portion of real estate-related	Q3 FY2020
(Apr. - Dec.)	expenses now included under depreciation is included under "Real Estate-related Expenses" in this chart.	(Apr. - Dec.)
© 2021 Japan Exchange Group, Inc.		7

Highlights and FY2020 Forecast

• Operating expenses increased due mainly to increases in system-related expenses. However, this was surpassed by growth in operating revenue associated with an increase in cash equities trading. As a result, quarterly net income increased by 12.1% year on year.

（JPY mil.）	Operating Revenue	Operating Expenses		Operating Income		Net Income*1				EBITDA
140,000
	FY2020%	123,688 126,000
120,000		77.2%
				97,273
100,000		87,433								FY2020%												85,683
80,000									FY2020%		83.0%	68,533 65,500		FY2020%						67,323
							72.1%	58,532 62,500								60,591
											54,365		82.1%
60,000													48,176							47,609	45,500
							42,018	45,052
40,000																		33,317		37,361
20,000
		+11.3%		+1.9%		+7.2%	+6.8%		+12.8%	(4.4%)		+12.1%	(4.4%)		+11.1%
0
FY2019 FY2020 FY2019 FY2020	FY2019 FY2020 FY2019 FY2020	FY2019 FY2020 FY2019 FY2020	FY2019 FY2020 FY2019 FY2020	FY2019 FY2020 FY2019
			Q3 Q3		（Forecast*2）		Q3 Q3	（Forecast*2）		Q3 Q3	（Forecast*2）		Q3		Q3	（Forecast*2）		Q3 Q3

*1 Net Income attributable to owners of the parent company.

*2 These values were modified on Oct. 28, 2020. The forecasted dividend was also modified on Oct. 28, 2020 from JPY 48 to JPY 52 per share.

• Average Daily Trading Volume/Value of Major Products

		Q3 FY2019	Q3 FY2020		FY2019	FY2020 (Assumptions for forecasts)
			y/y	(Revised on Oct. 28)	y/y
	Cash Equities (trading value) *1	JPY 2,831.6 bil.	JPY 3,313.0 bil.	+ 17.0%	JPY 3,081.1 bil.	JPY 3,100.0 bil.	+ 0.6%
	TOPIX Futures (trading volume)	109,773 contracts	100,657contracts	(8.3%)	121,034 contracts	104,000 contracts	(14.1%)
	Nikkei 225 Futures (trading volume) *2	187,564 contracts	203,013contracts	+ 8.2%	232,821 contracts	214,000 contracts	(8.1%)
	Nikkei 225 Options (trading value) *3	JPY 19.0 bil.	JPY 25.5 bil.	+ 34.2%	JPY 26.8 bil.	JPY 26.0 bil.	(3.2%)
	10-year JGB Futures (trading volume)	39,499 contracts	26,072contracts	(34.0%)	39,640 contracts	31,000 contracts	(21.8%)
	*1 Total value of daily averages of auction and off-auction trading of common stocks on 1st/2nd Sections, Mothers, JASDAQ, TOKYO PRO Market, and ETFs/ETNs, REITs etc.
	*2 Contracts of Nikkei 225 mini are calculated using a factor of 1/10.	*3 Excluding Weekly Options.
	© 2021 Japan Exchange Group, Inc.								8

II. Reference Materials

© 2021 Japan Exchange Group, Inc.

Referential Financial Data

 Quarterly Business Performance						(JPY mil.)
			FY2019				FY2020
		Q1	Q2	Q3	Q4			Q3
		Q1	Q2
	Operating Revenue	29,069	28,867	29,496	36,254	32,666	31,167	33,439
	Operating Expenses	13,643	13,839	14,535	16,514	15,235	15,096	14,720
	Operating Income	16,246	15,623	16,306	20,356	18,365	16,826	19,173
	Net Income *	10,711	10,862	11,744	14,292	12,082	11,705	13,573
	EBITDA	20,228	19,556	20,807	25,091	22,919	21,237	23,165

 Annual Business Performance							(JPY mil.)
		FY2015	FY2016	FY2017	FY2018	FY2019	FY2019	FY2020	y/y
		Apr. - Dec.	Apr. - Dec.
	Operating Revenue	114,776	107,885	120,711	121,134	123,688	87,433	97,273	+ 11.3%
	Operating Expenses	50,925	50,185	50,902	54,111	58,532	42,018	45,052	+ 7.2%
	Operating Income	66,271	59,377	71,791	69,535	68,533	48,176	54,365	+ 12.8%
	Net Income *	44,877	42,124	50,484	49,057	47,609	33,317	37,361	+ 12.1%
	EBITDA	77,791	71,595	82,505	82,568	85,683	60,591	67,323	+ 11.1%
	* Net income attributable to owners of the parent company.
© 2021 Japan Exchange Group, Inc.									10

Referential Financial Data

• Quarterly Operating Revenue

														(JPY mil.)
				FY2019			FY2020
							FY2019		FY2020
			Q1	Q2	Q3	Q4	Q1	Q2	Q3		Apr. - Dec.	Apr. - Dec.
										Ratio			Ratio		y/y
	Trading services revenue	11,057	10,908	11,399	15,224	13,630	12,252	13,185	39%	33,365	39,068	40%	+ 17.1%
	Transaction Fees	8,735	8,607	9,045	12,729	11,175	9,890	10,764	72%*1	26,388	31,831	71%*1	+ 20.6%
		Cash Equities	6,141	5,907	6,187	7,521	7,725	7,140	7,799	18,236	22,665	+ 24.3%
		Financial Derivatives	2,593	2,700	2,448	4,513	2,920	2,218	2,473	23%*1	7,742	7,612	24%*1	(1.7%)
		TOPIX Futures	493	543	521	695	474	473	488		1,558	1,436		(7.8%)
		Nikkei 225 Futures (incl. mini)	1,038	1,072	966	2,024	1,340	973	1,007		3,077	3,321		+ 7.9%
		Nikkei 225 Options *2	559	556	493	1,279	823	394	588		1,608	1,807		+ 12.3%
		10-year JGB Futures	467	475	426	441	232	325	357		1,370	916		(33.1%)
		Others	34	52	40	72	49	50	31	5%*1	127	130	5%*1	+ 2.5%
		Commodity Derivatives	-	-	410	694	530	531	491	410	1,553	+ 278.8%
	Basic Fees	249	247	262	261	258	254	252		759	765		+ 0.8%
	Access Fees	1,149	1,139	1,128	1,284	1,283	1,212	1,251		3,417	3,748		+ 9.7%
	Trading System Facilities Usage Fees	901	889	937	918	887	873	893		2,728	2,654		(2.7%)
	Others	21	23	24	31	25	21	22		70	68		(1.6%)
	Clearing services revenue	6,157	6,177	6,450	7,641	7,418	6,573	6,880	21%	18,786	20,872	21%	+ 11.1%
	Listing services revenue	3,290	3,356	3,507	4,168	3,126	3,592	4,262	13%	10,153	10,981	11%	+ 8.2%
	Initial/Additional Listing Fees	734	933	825	1,472	432	912	1,472		2,492	2,818		+ 13.1%
	Annual Listing Fees	2,556	2,423	2,681	2,695	2,693	2,679	2,790		7,660	8,163		+ 6.6%
	Information services revenue	5,345	5,282	5,406	5,942	5,723	5,865	6,125	18%	16,034	17,714	18%	+ 10.5%
	Other	3,218	3,142	2,733	3,277	2,767	2,883	2,985	9%	9,093	8,636	9%	(5.0%)
	arrownet Usage Fees	837	829	828	816	819	845	848		2,495	2,514		+ 0.8%
	Co-location Usage Fees	1,019	970	965	962	1,025	1,100	1,225		2,955	3,350		+ 13.4%
	Others*3	1,360	1,342	939	1,499	922	938	911		3,643	2,771		(23.9%)
	Total	29,069	28,867	29,496	36,254	32,666	31,167	33,439	100%	87,433	97,273	100%	+ 11.3%
*1	Figures indicate percentage of Transaction Fees.
*2	Excluding Weekly Options.
	*3 Including Proximity Usage Fees.
	© 2021 Japan Exchange Group, Inc.													11

Referential Financial Data

 Annual Operating Revenue					(JPY mil.)
	FY2015	FY2016	FY2017	FY2018	FY2019
Trading services revenue	52,471	45,703	51,766	48,660	48,589
Clearing services revenue	23,140	21,454	23,473	24,788	26,427
Listing services revenue	13,250	12,903	14,547	14,025	14,322
Information services revenue	17,706	18,112	19,878	21,029	21,977
Other	8,208	9,711	11,045	12,630	12,371
Total	114,776	107,885	120,711	121,134	123,688

© 2021 Japan Exchange Group, Inc.	12

Referential Financial Data

 Quarterly Operating Expenses									(JPY mil.)
			FY2019			FY2020*				FY2020
										IFRS 16 Leases applied
		Q1	Q2	Q3	Q4	Q1	Q2	Q3		Q1	Q2	Q3
	Personnel expenses	4,117	4,047	4,064	5,282	4,582	4,624	4,454		4,582	4,624	4,454
	System maintenance &	2,935	2,987	2,931	3,216	3,223	3,290	3,445		3,223	3,290	3,445
	operation expenses
	Depreciation & amortization	3,018	3,140	3,423	3,772	3,697	3,619	3,104		4,479	4,401	3,886
	Real estate-related expenses	1,066	1,070	1,072	1,067	1,083	1,094	1,097		301	311	315
	Other	2,505	2,593	3,044	3,175	2,648	2,469	2,618		2,648	2,469	2,618
	Total	13,643	13,839	14,535	16,514	15,235	15,096	14,720		15,235	15,096	14,720

 Annual Operating Expenses							(JPY mil.)
	FY2015	FY2016	FY2017	FY2018	*	FY2019	FY2020	y/y
	FY2019	Apr. - Dec. *	Apr. - Dec. *
Personnel expenses	16,437	15,614	16,329	16,584	17,512	12,229	13,661	+ 11.7%
System maintenance &	11,923	10,813	12,100	11,898	12,071	8,854	9,959	+ 12.5%
operation expenses
Depreciation & amortization	9,973	10,983	9,431	11,699	13,354	9,582	10,420	+ 8.7%
Real estate-related expenses	4,620	4,062	3,904	3,939	4,275	3,208	3,275	+ 2.1%
Other	7,970	8,711	9,136	9,989	11,318	8,143	7,735	(5.0%)
Total	50,925	50,185	50,902	54,111	58,532	42,018	45,052	+ 7.2%

*: As new accounting standards for leases under IFRS are applied from FY2019, a portion of the amount previously included under "Real Estate-related Expenses" is now included under depreciation. For the purpose of comparison, this portion is included under "Real Estate-related Expenses" in these columns.

© 2021 Japan Exchange Group, Inc.	13

Referential Financial Data

• Consolidated Statement of Financial Position

(JPY mil.)

		As of Mar. 31,2020	As of Dec. 31,2020
Assets
	Current assets	71,883	81,958
	Cash and cash equivalents
*1	Trade and other receivables	16,686	16,983
Clearing business financial assets	60,329,672	53,116,129
*2	Specified assets for deposits from	6,549,099	5,868,769
clearing participants
*3	Specified assets for legal guarantee	762	673
funds
	Income tax receivables	5,922	7,569
	Other financial assets	117,400	116,800
	Other current assets	1,837	2,765
	Total current assets	67,093,263	59,211,649
	Non-current assets	14,798	11,525
	Property and equipment
	Goodwill	67,374	67,374
	Intangible assets	35,045	34,904
	Retirement benefit assets	5,642	5,568
	Investments accounted for using the	14,703	16,316
	equity method
*5	Specified assets for default compensation	27,948	27,948
reserve funds
	Other financial assets	18,156	8,468
	Other non-current assets	6,049	5,949
	Deferred tax assets	3,321	3,395
	Total non-current assets	193,039	181,451
Total assets	67,286,302	59,393,100

*1 Assets and liabilities assumed by Japan Securities Clearing Corporation (JSCC) for derivatives trading, etc. as of the end of the fiscal year and the quarter.

*2 Deposits from clearing participants required by JSCC for covering the risk of clearing participants defaulting on their obligations.

*3 Deposits from trading participants required by Tokyo Stock Exchange (TSE), Osaka Exchange (OSE), and Tokyo Commodity Exchange(TOCOM) for covering the risk at parties who have entrusted securities trading, etc. with trading participants defaulting on their obligations.

*4 Deposits from trading participants required by TSE, OSE, and TOCOM for covering the risk of trading participants defaulting on their obligations.

*5 Reserve funds for compensating losses incurred by JSCC in clearing operations.

*6 Including reserve funds for compensating losses incurred by JSCC in clearing operations.

			As of Mar. 31,2020	As of Dec. 31,2020
Liabilities and equity
	Liabilities
		Current liabilities	6,643	4,047
		Trade and other payables
		Bonds and loans payable	32,500	32,500
	*1	Clearing business financial liabilities	60,329,672	53,116,129
	*2	Deposits from clearing participants	6,549,099	5,868,769
	*3	Legal guarantee funds	762	673
	*4	Trading participant security money	8,248	8,210
		Income tax payables	10,289	7,826
		Other current liabilities	10,062	8,727
		Total current liabilities	66,947,278	59,046,884
		Non-current liabilities	19,953
		Bonds and loans payable	19,958
		Retirement benefit liabilities	8,866	9,003
		Other non-current liabilities	2,162	2,364
		Deferred tax liabilities	2,665	1,134
		Total non-current liabilities	33,648	32,461
		Total liabilities	66,980,926	59,079,345
	Equity	11,500
		Share capital	11,500
		Capital surplus	39,716	39,716
		Treasury shares	(1,548)	(1,889)
	*6	Other components of equity	5,602	2,136
	Retained earnings	242,958	255,008
		Total equity attributable to owners of the parent	298,228	306,473
		company
		Non-controlling interests	7,146	7,282
		Total equity	305,375	313,755
Total liabilities and equity	67,286,302	59,393,100

© 2021 Japan Exchange Group, Inc.	14

Referential Financial Data

 Sale of SGX Shares (thou. shares, JPY mil.)

		FY2018			FY2019			FY2020		Total
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Shares sold	2,947	4,421	4,421	4,421	4,421	4,421	4,421	4,421	4,421	4,421	4,421	47,157
(% of shareholding)*	(5.6％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(8.3％)	(88.9％)
Total value sold	1,766	2,691	2,554	2,728	2,603	2,812	3,116	2,946	3,133	2,890	3,126	30,371

• Percentage of shareholding of 53,051,000 shares as of Mar. 30, 2018
• Assets, Liabilities, and Equity

For assets and liabilities of JPX Group, "clearing business financial assets and liabilities*1" assumed by JSCC as a clearing organization and "deposits from clearing participants*2" deposited by clearing participants as collateral are included under both assets and liabilities. "Clearing business financial assets and liabilities*1" and "deposits from clearing participants*2" have a large impact on the amount of assets and liabilities of JPX Group due to their sizable amounts and daily fluctuations subject to changes in, for example, clearing participants' positions. In addition, "legal guarantee funds*3", "trading participant security money*4", and "default compensation reserve funds*5" based on the rules for securing the safety of financial instruments transactions and commodity derivatives transactions are included both under assets and either liabilities or equity.

The figures shown in parentheses in the table below are those calculated by excluding "clearing business financial assets*1", "deposits from clearing participants*2", "legal guarantee funds*3", and "default compensation reserve funds*5" for total assets, and by excluding "default compensation reserve funds*6" for total equity and total equity attributable to owners of the parent company.

		Total assets	Total equity	Total equity attributable to	Ratio of total equity
				owners of the parent	attributable to owners of
				company	the parent company to total
					assets
		JPY mil.	JPY mil.	JPY mil.	%
	Q3 FY2020	59,393,100 (379,580)	313,755 (285,807)	306,473 (278,524)	0.5 (73.4)
	FY2019	67,286,302 (378,820)	305,375 (277,427)	298,228 (270,280)	0.4 (71.3)
* The footnotes from page 14 also apply in those the contents of this page.
© 2021 Japan Exchange Group, Inc.					15

ETF / ETN and REIT Trends

• Average daily trading value of ETFs/ETNs and REITs increased 32.1% year on year due mainly to an increase in ETF trading.
• ETF AUM continued on an upward trend, with growth mainly in TOPIX ETFs.

 ADV of ETFs/ETNs and REITs	 ETF / REIT AUM
(JPY bil.)	(JPY tril.)

500	ETFs / ETNs	J-REITs	Share			14%	70
450							12% 60
400
350							10% 50
300							8%	40
250
200							6%	30
150							4%	20
100							2%	10
50
0							0%	0
FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

	REIT		Other ETFs		JPX 400-linked ETFs		TOPIX-linked ETFs

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3Q

* Share indicates the percentage of trading value of ETFs, ETNs, and REITs out of overall cash equities	* Excludes foreign ETFs and REITs, as well as certain ETFs with different creation structures.
trading value.
© 2021 Japan Exchange Group, Inc.		16

IPO / PO Trends

• The number of IPOs at TSE was 75, up from 67 in the same period a year earlier.
• The amount raised by listed companies and REITs surpassed the amount in the previous fiscal year to about JPY 1,755.5 billion (up 37.8% year on year), due mainly to an increase in the amount raised by listed companies.

• IPOs at TSE

(Number of companies)

• Financing by Listed Companies and REITs

(JPY tril.)

								103
100				TSE 1st/2nd	89	95	88	94
				Mothers		83
80				JASDAQ				75

7

6

REITs

Offerings to shareholders and Private placements

Public Offerings (excluding IPOs)

				TOKYO PRO Market
60		56
	52

4037

25 23

20 17

0

2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
(FY)												Q3

5		IPOs

4

3

2

1

0

2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
(FY)												Q3

© 2021 Japan Exchange Group, Inc.	17

Major Products Data

 Trading Volume/Value

		FY2019			FY2020
Trading Value of Cash Equities (JPY mil.)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	y/y
TSE 1st/2nd Section *1	147,178,363	147,629,790		155,138,128	186,786,898	168,384,294	153,038,671	174,155,955	+ 12.3%
Mothers *1	6,963,647	4,982,179		5,395,576	5,030,963	11,559,220	13,502,882	14,289,630	+ 164.8%
JASDAQ *1	2,563,385	2,275,480		3,366,223	3,646,753	4,074,021	3,737,963	4,112,366	+ 22.2%
ETFs/ETNs and REITs etc. *2	13,416,948	14,851,259		14,412,209	28,906,192	28,707,905	17,987,354	19,351,859	+ 34.3%
Financial Derivatives Trading Volume (contracts) (Trading Value for Nikkei 225 Options)					6,234,194	(8.6 %)
TOPIX Futures	6,279,228	6,991,769		6,817,513	9,080,694	6,333,737	6,053,651
Total Nikkei 225 Futures/mini *3	11,726,944	11,820,069		10,777,275	21,785,462	15,309,855	11,212,710	11,034,837	+ 2.4 %
Nikkei 225 Futures	5,642,599	5,709,714		5,265,831	9,901,626	6,755,820	5,092,953	5,420,614	+ 2.9 %
Nikkei 225 mini	60,843,454	61,103,555		55,114,443	118,838,361	85,540,350	61,197,574	56,142,234	+ 1.9 %
Nikkei 225 Options (JPY mil.) *4	1,265,336	1,173,048		1,033,791	2,998,660	2,306,982	1,057,950	1,347,226	+ 30.3 %
10-year JGB Futures	2,469,865	2,510,187		2,248,328	2,324,740	1,223,356	1,716,030	1,883,945	(16.2 %)
Commodity Derivatives Trading Volume (contracts) *5	2,075,592	2,986,310		1,649,335				1,899,310	+ 15.2 %
Gold Futures (Total standard/mini/rolling spot) *6		3,467,766	1,318,749	2,231,317
Platinum Futures (Total standard/mini/rolling spot) *7	893,064	871,815		722,679	1,109,223	290,874	379,714	487,397	(32.6 %)
Crude Oil Futures	650,005	692,751		601,035	1,027,481	2,174,199	1,432,645	1,376,405	+ 129.0 %
Rubber Futures (RSS3)	286,194	303,906		264,243	281,746	192,679	239,788	379,576	+ 43.6 %

• Average Daily Trading Volume/Value

		FY2019				FY2020
Trading Value of Cash Equities (JPY mil.) *8	Q1	Q2	Q3	Q4	Q1	Q2	Q3	y/y
2,883,430	2,737,763	2,876,003	3,868,463	3,487,302	3,086,368	3,363,649	+ 17.0 %
Financial Derivatives Trading Volume (contracts) (Trading Value for Nikkei 225 Options)
TOPIX Futures	106,428	112,770	109,960	156,564	103,832	99,240	98,955	(10.0 %)
Total Nikkei 225 Futures/mini *3	198,762	190,646	173,827	375,611	250,981	183,815	175,156	+ 0.8 %
Nikkei 225 Futures	95,637	92,092	84,933	170,718	110,751	83,491	86,041	+ 1.3 %
Nikkei 225 mini	1,031,245	985,541	888,943	2,048,937	1,402,301	1,003,239	891,147	+ 0.2 %
Nikkei 225 Options (JPY mil.) *4	21,446	18,920	16,674	51,701	37,819	17,343	21,385	+ 28.3 %
10-year JGB Futures	41,862	40,487	36,263	40,082	20,055	28,132	29,904	(17.5 %)
Commodity Derivatives Trading Volume (contracts) *5	35,180	48,166	26,602	59,789			30,148	+ 13.3 %
Gold Futures (Total standard/mini/rolling spot) *6	21,619	36,579
Platinum Futures (Total standard/mini/rolling spot) *7	15,137	14,062	11,656	19,125	4,768	6,225	7,736	(59.5 %)
Crude Oil Futures	11,017	11,173	9,694	17,715	35,643	23,486	21,848	+ 125.4 %
Rubber Futures (RSS3)	4,851	4,902	4,262	4,858	3,159	5,329	6,025	+ 41.4 %
*1 Value of auction and off-auction trading of common stocks. *2 Total value of auction and off-auction trading. *3 Nikkei 225 mini contracts are calculated using a factor of 1/10.

*4	Excluding Weekly Options. *5 Including cash-settled contracts. *6 Mini and rolling spot contracts are calculated using a factor of 1/10. *7 Mini and rolling spot contracts are calculated using a factor of 1/5.
*8	Total value of daily averages of auction and off-auction trading of common stocks on 1st/2nd Sections, Mothers, JASDAQ, TOKYO PRO Market, and ETFs/ETNs, REITs, etc.
© 2021 Japan Exchange Group, Inc.	18

Major Products Data

 Trading Value for Cash Equities in Q3

 Trading Volume for Derivatives in Q3

(JPY tril.)	(JPY tril.)						(Trading Value for Nikkei 225 Options)
				(mil. contracts)				(mil. contracts)
600	60					25					250
500	50					20					200
400	40					15					150
300	30
200	20					10					100
100	10					5					50
0	0					0					0
TSE 1st/2nd	Mothers	JASDAQ	ETFs/ETNs	J-REITs		TOPIX	Nikkei 225	Nikkei 225	JGB Futures	Nikkei 225
			■ FY2019	■ FY2020	Futures	Futures	Options		mini
					(JPY tril.)
 Number and Amount of Assumption of Obligations (Interest Rate Swaps)
(JPY tril.)											(transactions)
140											12,000
120											10,000
100											8,000
80
										6,000
60
										4,000
40
20											2,000
0											0
		Amount of Assumption of Obligations		Number of Assumption of Obligations
© 2021 Japan Exchange Group, Inc.										19

Number of Listed Companies, ETFs / ETNs, and REITs

• Number of listed companies (issues)

（Companies/Issues）

	Number of listed companies (issues)
	As of	As of
	March 31, 2020	December 31, 2020
			Change
TSE 1st/2nd Section	2,650	2,663	13
Mothers	326	347	21
JASDAQ	703	705	2
TOKYO PRO Market	33	41	8
Total	3,712	3,756	44
ETFs/ETNs	245	259	14
REITs	63	62	（1)

© 2021 Japan Exchange Group, Inc.	20

JPX Stock Price

JPX Stock Price (JPY)

Nikkei 225 (JPY 10)

TOPIX (points)

3,500

10/1/2015

3,000

Stock split (2-for-1)

3/24/2014

2,500

Integration of derivatives markets

7/16/2013

Integration of cash

2,000

equity markets

1,500

1,000

10/1/2013

Stock split (5-for-1)

500

2/26/2013

Announcement of cancellation of treasury shares

1/1/2013

0

Launch of JPX

1/31/2018	10/1/2019
Announcement of cancellation	TOCOM becomes a subsidiary
of treasury shares

1/30/2017		Trading Volume		Nikkei 225
Announcement of		TOPIX		Stock Price
acquisition of own shares
7/28/2016
Announcement of
acquisition of own shares

Trading Volume

(mil. shares)

70

60

50

40

30

20

10

0

Listed on both the TSE1st Section and JASDAQ from January 1 to July 15, 2013. Prices above are prices on the TSE1st Section. Trading volumes above are the total of those on TSE1st Section and JASDAQ. Two stock splits were conducted separately with respective effective dates of October 1, 2013 and October 1, 2015. Stock prices and trading volume before said stock splits were converted to reflect both events.

© 2021 Japan Exchange Group, Inc.	21

Japanese Stock Market

Nikkei 225 (JPY 10)

TOPIX (points)(JPY/USD) JPX-Nikkei400 (10 points)

3,000												Nikkei 225						TOPIX										JPX-Nikkei400								JPY/USD Rate						Trading Value (TSE 1st)				130
2,800																																									120
2,600
2,400																																																																																				110
2,200
2,000																																																																																				100
1,800
1,600
1,400
1,200																																																																																			Trading	Value
1,000																																																																																			JPY 4 tril.
800
600																																																																																			JPY 2 tril.
400
200
0
2004	2005		2006		2007	2008	2009			2010		2011	2012	2013			2014	2015	2016	2017	2018	2019	2020	2021
© 2021 Japan Exchange Group, Inc.																																																																							22

Outline of JPX Stock

Stock Code

8697

Listed Exchange

Tokyo Stock Exchange 1st Section

Fiscal Year End

March 31

Annual General Shareholders Meeting

June

Record Date

Annual general shareholders meeting: March 31

Year-end dividend: March 31

Interim dividend: September 30

Number of Shares in One Trading Unit

100 shares

Total number of shares issued

536,351,448

JPX adopts a dividend policy with a target payout ratio of about 60% tied to business

performance while giving due consideration to the importance of internal reserves for the

Basic Policy on Profit Distribution

following purposes:

- Maintaining sound financial health as a financial instruments exchange group,

- Preparing for risks as a clearing organization, and

- Enabling the group to pursue investment opportunities to raise the competitiveness of

its markets as they arise.

Structure of JPX

Japan Exchange Group

(Kiyota Akira, Group CEO)

Cash Equities Trading

Derivatives

Trading

Self-regulation

Clearing

Tokyo Stock Exchange

Osaka Exchange

Tokyo Commodity

Japan Exchange

JapanSecuritiesClearing

Kiyota Akira

Yamaji Hiromi

Exchange

Regulation

Corporation

President & CEO

President & CEO

Yamaji Hiromi

Hosomizo Kiyoshi

Shizuka Masaki

Representative Director & Chair

President

President & CEO

Ishizaki Takashi

Representative Director, President

© 2021 Japan Exchange Group, Inc.

23

Disclaimer

These materials are prepared solely for the purpose of providing information regarding Japan Exchange Group, Inc., and as such, they are not intended as an offer or sale of securities or other similar action whether inside or outside Japan. Our securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

These materials contain forward-looking statements. These statements are based on our assumptions and beliefs in light of the information currently available to us and are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those we currently anticipate. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of these materials. We disclaim any obligation to update any of the forward-looking statements contained in these materials to reflect future actual events or developments.

© 2021 Japan Exchange Group, Inc.	24