MATSUI SECURITIES : Financial summary for the FY2016 is updated

Non-Consolidated Financial Summary under Japanese GAAP For the Three Months Ended June 30, 2017

Filing Date: July 27, 2017

Company name (Securities code): Matsui Securities Co., Ltd. (8628) Stock exchange listing: Tokyo

（URLhttp://www.matsui.co.jp/ir/en/index.html）

Representative: Michio Matsui: President and Chief Executive Officer Quarterly statement filing date (as planned): August 10, 2017 Dividend payable date (as planned): －

Note: All figures in the financial statements are rounded off to the nearest millionth.

1．Non-Consolidated financial summary for the three months ended June 30, 2017

1. Operating results

   	Operating revenue	Net operating revenue	Operating income	Ordinary income
   Three months ended June 30, 2017 Three months ended June 30, 2016	Millions Yr/Yr ( ) ( ) of Yen % change 7,215 (3.3) 7,463 (19.2)	Millions Yr/Yr ( ) ( ) of Yen % change 6,896 (4.4) 7,212 (17.9)	Millions Yr/Yr ( ) ( ) of Yen % change 3,964 (1.6) 4,028 (33.0)	Millions Yr/Yr ( ) ( ) of Yen % change 4,016 (1.7) 4,084 (32.6)

   Profit	Basic earnings per share	Diluted earnings per share
   Three months ended June 30, 2017 Three months ended June 30, 2016	Millions Yr/Yr ( ) ( ) of Yen % change 2,780 (1.7) 2,828 (30.4)	(Yen) 10.83 11.02	(Yen) 10.82 11.01

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of June 30, 2017	(Millions of Yen)	(Millions of Yen)	(%)	(Yen)
   	820,967	93,019	11.3	361.96
   As of March 31, 2017	770,716	94,820	12.3	369.02

2. Financial position

Owner's equity: As of June 30, 2017 92,925 million yen As of March 31, 2017 94,739 million yen

2．Dividends

	Dividend per share
First quarter	Second quarter	Third quarter	Year end	Annual
Year ended March 31, 2017	(Yen) －	(Yen) 13.00	(Yen) －	(Yen) 20.00	(Yen) 33.00
Year ends March 31, 2018	－
Year ends March 31, 2018 (estimation)	－	－	－	－

3．Notes

1. Applying of specific accounting of the non-consolidated quarterly financial statements: None

2. Changes in accounting policies and accounting estimates retrospective restatement

3. Changes in accounting policies based on revisions of accounting standard: None

4. Changes in accounting policies other than ones based on revisions of accounting standard: None

5. Changes in accounting estimates: None

6. Retrospective restatement: None

7. Number of issued and outstanding shares (common stock)

8. Number of issued and outstanding shares (including treasury stock) As of June 30, 2017 259,264,702 shares

   As of March 31, 2017 259,264,702 shares

9. Number of treasury stock

   As of June 30, 2017 2,533,433 shares

   As of March 31, 2017 2,533,366 shares

10. Average number of shares

    For the Three months ended June 30, 2017 256,731,314 shares For the Three months ended June 30, 2016 256,731,388 shares

    Note1: This quarterly financial results are not subject to quarterly review procedures.

    Note2: The business results of securities brokerage companies depend on the market situation considerably, which makes it difficult to forecast the future business results. For the same reason, dividend amount is not decided. Accordingly, the Company does not issue such forecast while it discloses its monthly business information instead of such forecasts.

    Notice to readers:

    The accompanying financial statements of the Company are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards.

    Quarterly financial statements and major notes

11. Quarterly balance sheet

    (Millions of Yen)

    March 31, 2017 June 30, 2017

    Assets

    Current Assets

    Cash and deposits 25,743 37,151

    Cash segregated as deposits 467,212 509,012

    Money held in trust 5,950 5,813

    Trading products: 1,408 1,260

    Trading securities and other 0 25

    Derivatives 1,408 1,234

    Trade date accrual 15 ―

    Margin transaction assets: 245,202 243,926

    Loans on margin transactions 237,047 227,358 Cash collateral pledged for

    securities borrowing on margin

    transactions

    8,154 16,568

    Loans secured by securities: 9,536 5,534 Cash collateral pledged for

    securities borrowed 9,5365,534

    Advances paid	26	18
    Cash paid for offering	28	59
    Short-term guarantee deposits	1,648	3,703
    Other	4,859	4,535
    Allowance for doubtful accounts	(116)	(109)
    Total current assets	761,510	810,902
    Non-current assets
    Property, plant and equipment	958	930
    Intangible assets:	4,118	4,524
    Software	4,118	4,524
    Other	0	0
    Investments and other assets:	4,129	4,612
    Investment securities	2,893	3,673
    Other	2,785	2,498
    Allowance for doubtful accounts	(1,549)	(1,559)
    Total non-current assets	9,205	10,066
    Total assets	770,716	820,967

    Liabilities

    Current liabilities

    (Millions of Yen)

    March 31, 2017 June 30, 2017

    Trading products:	281	243
    Derivatives	281	243
    Trade date accrual	―	37
    Margin transaction liabilities:	51,228	59,296
    Borrowings on margin
    transactions	5,932	7,940
    Cash received for securities lending on margin transactions	45,297	51,357
    Loans payable secured by securities:	13,262	14,331
    Cash received on debt credit transaction of securities	13,262	14,331
    Deposits received	272,048	315,213
    Guarantee deposits received	205,409	225,184
    Short-term loans payable	126,100	107,100
    Income taxes payable	2,417	1,175
    Provision for bonuses	174	48
    Other	1,608	1,952
    Total current liabilities	672,527	724,579

    Non-current liabilities

    Long-term loans payable 150 150

    Reserve for retirement bonuses for

    directors and auditors Other	3	3
    Total non-current liabilities	358	358

    204 204

    Reserves under special laws Reserve for financial products

    Total reserves under special laws	3,012	3,012
    Total liabilities	675,896	727,949

    transaction liabilities 3,012 3,012

    Net assets

    Shareholders' equity Capital stock	11,945	11,945
    Capital surplus	9,793	9,793
    Retained earnings	73,018	70,663
    Treasury shares	(1,915)	(1,915)
    Total shareholders' equity	92,840	90,485

    Valuation and translation adjustments Valuation difference on

    available-for-sale securities 1,898 2,440

    Total valuation and translation

    adjustments 1,898 2,440

    Subscription rights to shares	81	93
    Total net assets	94,820	93,019
    Total liabilities and net assets	770,716	820,967

12. Quarterly statement of income

    (Millions of Yen)

    Operating revenue

    Three months ended June 30, 2016

    Three months ended June 30, 2017

    Commission received 4,572 4,334

    Commission to consignees 4,308 4,152 Commission for underwriting, secondary

    distribution and solicitation for selling and ― 2

    others for professional investors

    Fee for offering, secondary distribution and

    solicitation for selling and others for 0 0

    professional investors

    Other fees received 265 179

    Net trading income 1 138

    Financial revenue 2,889 2,743

    Other operating revenue 1 0

    Total operating revenue 7,463 7,215

    Financial expenses 251 320

    Net operating revenue 7,212 6,896 Selling, general and administrative expenses

    Trading related expenses 1,067 1,093

    Personnel expenses 559 581

    Real estate expenses 226 216

    Office cost 439 508

    Depreciation 312 363

    Taxes and dues 104 101

    Provision of allowance for doubtful accounts 441 20

    Other 37 49

    expenses Operating profit	3,184 4,028	2,931 3,964
    Non-operating income
    Dividend income	55	49
    Other	2	3
    Total non-operating income	56	52
    Non-operating expenses
    Other	1	0
    Total non-operating expenses	1	0
    Ordinary profit	4,084	4,016
    Extraordinary losses
    Loss on sales and retirement of non-current assets ―0
    Total extraordinary losses	―	0
    Profit before income taxes	4,084	4,016
    Income taxes - current	1,191	1,106
    Income taxes - deferred	64	131
    Total Income taxes	1,255	1,236
    Profit	2,828	2,780

    Total selling, general and administrative

13. Notes on quarterly financial statements

14. (Notes, Uncertainties of entity's ability to continue as going concern) No relevant items.

    (Notes, when there is significant changes in amounts of equity) No relevant items.

    (Notes, Quarterly-Applying of specific accounting of the quarterly financial statements) No relevant items.

    (Notes, Quarterly-Changes in accounting policies and accounting estimates retrospective restatement)

    No relevant items.