Japan Securities Finance : Consolidated Financial Results for the Second Quarter ended September 30, 2022

JAPAN SECURITIES FINANCE CO., LTD.

Consolidated Financial Results

for the Second Quarter ended September 30, 2022

Name：Japan Securities Finance Co., Ltd.

Listing：First Section, Tokyo Stock Exchange

Stock code number：8511

Address：1－2－10, Nihonbashi Kayaba－cho, Chuo－ku, Tokyo, Japan 103－0025 Phone：[phone]

(Millions of yen, rounded down to nearest million)

1.Consolidated Financial Results for the Second Quarter of Fiscal 2022 (April 1, 2022－September 30, 2022)

(1)Consolidated Results of Operations

(% change from year-on-year for those items)

		Operating Revenues	Operating Income	Recurring Income	Net Income
		(Millions of Yen)	(％ change)	(Millions of Yen)	(％ change)	(Millions of Yen)	(％ change)	(Millions of Yen)	(％ change)
	Second Quarter	21,081	40.0	4,526	31.5	5,135	33.3	4,110	49.7
	of Fiscal 2022
	Second Quarter	15,056	△1.5	3,442	24.8	3,851	26.7	2,745	25.5
	of Fiscal 2021
	Fiscal 2021	30,138	△2.5	6,235	30.5	7,164	28.9	5,174	30.3
	Note : Comprehensive Income	Fiscal2022 2Q : ¥1,642million(△51.3%) Fiscal2021 2Q : ¥3,375million(△3.4%)
		Net Income per Share	Net Income per Share
		EPS	(Yen)	(Yen) (fully diluted)
	Second Quarter		46.09		―
	of Fiscal 2022
	Second Quarter		29.91		―
	of Fiscal 2021
	Fiscal 2021		56.61		―

(2)Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio
	(Millions of Yen)	(Millions of Yen)	(％)
As of	15,059,474	137,177	0.9
Sep.30, 2022
Fiscal 2021	14,168,656	137,996	1.0

Reference : Shareholders Equity Fiscal2022 2Q : ¥137,447million Fiscal2021 : ¥137,996million

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2. Dividends

	Dividends per Share
	Interim	Year-End	Annual
	(Yen)	(Yen)	(Yen)
Fiscal 2021	15.00	15.00	30.00
Fiscal 2022	16.00
Fiscal 2022		16.00	32.00
(Forecast)
Note : Amendment	of Forecast	None

3. Consolidated Estimated Figures for fiscal 2022(April 1,2022－March 31,2023)

	Operating	Recurring	Net Income	Net Income
	Income	Income	per Share
	(Millions of yen)	(Millions of yen)	(Millions of yen)	EPS (Yen)
Full-year	6,500	7,500	5,700	64.34

Note : Amendment of Estimated Figures Yes

4. Others

1. Changes in the scope of important consolidation for subsidiaries (yes/no) : No
2. Adoption of specified accounting methods for quarterly consolidated financial statements : No
3. Changes in accounting policies and changes or restatement of accounting estimates
4. • Changes in accounting policies caused by revision of accounting standards : Yes

1. • Changes in accounting policies other than ① : No
     ③ Changes in accounting estimates : No
     ④ Restatement : No
2. Number of Issued Shares(common stock)

• Number of issued shares (Including treasury stock)

as of Sep.30, 2022 : 96,000,000 as of Mar.31, 2022 : 96,000,000

• Number of Treasury stocks

as of Sep.30, 2022 : 7,662,957 as of Mar.31, 2022 : 6,683,572

• Average number of shares

For six months ended Sep.30, 2022 : 89,194,627

For six months ended Sep.30, 2021 : 91,789,104

Note : Quarterly financial report is not subject to quarterly review by a certified public accountant or auditing firm.

Note : Explanations and other special notes concerning the appropriate use of business performance forecasts.

The Company does not disclose earnings forecasts because the performance of the securities finance business, which is the Group's main business, is significantly affected by trends in the stock market, interest rates, and other factors.

In addition, for the purpose of disclosing information according to the type of business of the Group, the figures calculated on the basis of the outstanding balance of Margin Loan business and other assumptions are presented.

Financial results are disclosed as soon as reasonable estimates can be made quarterly.

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Consolidated Balance Sheets

【Assets】	Fiscal 2021	Second Quarter
Mar.31,2022	Sep.30,2022
	(millions of yen)	(millions of yen)
Ⅰ Current Assets	13,083,009	14,147,688
Cash	1,299,070	1,681,902
Call Loans	－	－
Short-term Investments	109,724	63,130
Operating Loans	891,485	940,539
Receivables under resale agreements	3,928,146	4,756,391
Collateral Money for Securities Borrowed	6,499,422	6,284,149
Other Current Assets	355,293	421,654
Allowance for Doubtful Receivables	△ 133	△ 78
Ⅱ Non-current Assets	1,085,646	911,786
Investments in Securities	1,042,496	855,100
Other Non-current Assets	43,245	56,772
Allowance for Doubtful Receivables	△ 95	△ 86
Total Assets	14,168,656	15,059,474

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【Liabilities and Net Assets】	Fiscal 2021	Second Quarter
Mar.31,2022	Sep.30,2022
	(millions of yen)	(millions of yen)
Ⅰ Current Liabilities	14,015,456	14,913,090
Call Money	1,858,400	2,358,000
Short-term Borrowings	239,210	82,010
Commercial Paper	496,000	505,500
Payables under repurchase agreements	5,544,898	5,909,427
Collateral Money for Securities Lent	4,706,496	4,923,879
Borrowed Money from Trust Account	1,031,412	983,171
Other Current Liabilities	139,039	151,102
Ⅱ Non-current Liabilities	15,202	8,937
Long-term Borrowings	4,000	4,000
Deferred Tax Liabilities	3,011	2,156
Derivatives Liabilities	7,054	1,709
Other Non-current Liabilities	1,136	1,071
Total Liabilities	14,030,659	14,922,027
Ⅰ Shareholders' Equity	129,719	131,638
Ⅱ Accumulated Other Comprehensive Income	8,277	5,808
Net Unrealized Gain on Other Securities	9,920	△ 5,097
Deferred Losses on Hedges	△ 1,967	10,554
Others	324	351
Total Net Assets	137,996	137,447
Total Liabilities and Net Assets	14,168,656	15,059,474

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Consolidated Statement of Income

	Second Quarter	Second Quarter	Fiscal 2021
	Apr.1,2021-	Apr.1,2022-	Apr.1,2021-
	Sep.30,2021	Sep.30,2022	Mar.31,2022
	(millions of yen)	(millions of yen)	(millions of yen)
Operating Revenues	15,056	21,081	30,138
Interest on Loans	1,377	1,229	2,708
Interest on Receivables under Resale	2,630	5,019	5,714
Agreements
Interest on Collateral Money for Securities	1,066	1,309	2,250
Borrowed
Fees on Lending Securities	4,691	5,792	9,457
Other Operating Revenues	5,290	7,731	10,006
Operating Expenses	8,159	12,973	16,533
Interest on Borrowing & Commercial Paper	389	440	747
Interest on Payables under Repurchase	1,657	3,052	3,614
Agreements
Fees on Borrowing Securities	4,569	5,895	9,357
Other Operating Expenses	1,543	3,584	2,814
Operating Profit	6,897	8,108	13,604
General and Administrative Expenses	3,454	3,581	7,368
Operating Income	3,442	4,526	6,235
Non-operating Revenues	420	612	959
Non-operating Expenses	11	3	29
Recurring Income	3,851	5,135	7,164
Extraordinary Profit	40	671	40
Extraordinary Loss	16	―	58
Net Income before Income Taxes	3,875	5,806	7,147
Current Income Taxes	1,034	1,415	2,071
Deferred Income Taxes	96	280	△ 98
Net Income	2,745	4,110	5,174

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