October 2018

Matsui Securities Co., Ltd. (First Section of TSE: 8628)

Annual Results for 2QFY2018

Section 1 Financial Summary 6

Section 2 Results of Operation 16

Section 3 Recent Developments 24

1

Table of Contents

2

Results of Operation

◆ Equity trading value / Market share

◆ Margin balance / Market share

◆ Equity commission rate

◆ Net financial income ratio

7.9

9.7 9.4

7.9 6.8

4.3 4.8 4.7 4.2

3.6

11.6%10.7% 10.6% 10.9%

10.1%

0

5

10

15

2QFY17

3Q 4Q 1QFY18

2Q

(JPY tn) Margin Trading Service for Day-trades

4.7 4.9 5.04.6

4.9

10.09.6 9.8 9.6

10.1

0

3

6

9

12

2QFY17

3Q 4Q 1QFY18

2Q

(bp) Excluding “Margin Trading Service for Day-trades”

282

323337

319279

8.9% 9.2%8.7% 8.7% 8.6%

0

100

200

300

400

2QFY17

3Q 4Q 1QFY18

2Q

(JPY bn)

3.6% 3.5% 3.3% 3.4% 3.6%

0.0%

2.0%

4.0%

6.0%

2QFY17

3Q 4Q 1QFY18

2Q

3

Financial Results

◆ Operating revenue ◆ Ordinary income

◆ Net income / ROE1

◆ Ordinary income ratio

Note 1: Annualized on each quarter

7,371

8,741 8,883

7,4626,927

0

2,500

5,000

7,500

10,000

2QFY17

3Q 4Q 1QFY18

2Q

(JPY mn)

4,034

5,150 5,431

4,216 3,653

0

2,000

4,000

6,000

8,000

2QFY17

3Q 4Q 1QFY18

2Q

(JPY mn)

2,7903,566 3,773

2,9302,535

11.8%

15.0% 15.6%

12.1%

10.6%

0

2,000

4,000

6,000

8,000

2QFY17

3Q 4Q 1QFY18

2Q

(JPY mn)

55%59% 61%

56%53%

0%

20%

40%

60%

80%

2QFY17

3Q 4Q 1QFY18

2Q

4

Financial Highlights

◆ Operating revenues down JPY 540 million QoQ

•Commissions were down JPY 310 million due to decline of equity trading value.

• Interest & dividend income was down JPY 170 million due to decline of average margin

balance.

•Net trading income was down JPY 60 million due to decline of swap transaction on FX

margin trading.

◆ SG&A down JPY 20 million QoQ

•Trading related expenses were down JPY 30 million due to decline of equity trading value.

52 54

112

156

338

295248

168157

131113

158

389

314331

266

317

273

16 20

55

93

193189174

128121106

93

129

323

267279

230

269

234

30%

37%

49%

59%57%

64%70%

76%77%81%82%82%83%85%84%

86%85%86%

0

100

200

300

400

FY01 FY05 FY09 FY13 FY17

Equity trading value of individuals

Equity trading value of 7 on-line brokers

Proportion of trading value of 7 on-line brokers

（JPY tn）

5

Overview of Retail Equity Trading Market

◆ Equity trading value of individuals1

(FLOW)

◆ Equity holdings by individuals1

(STOCK)

Source: TSE, Company data, Company Website, BOJ

Note 1: 5 on-line brokers are Matsui, SBI, Rakuten, Monex and Kabu.com, 7 on-line brokers include GMO Click and Okasan Online

Equity trading value of FY18 is estimated. Equity holdings of FY18 is as of September 2018.

Note 2: Super active traders : number of trades per month is over 100 times

Super active

traders2

JPY 170 tn （Estimate）

65

52

81 84

118109

77

54

68 63 63

7683

10091

99

113113

2 2 4 6 11 11 9 7 10 10 11 14 16 20 19 22 26 263%4%

5%

7%

10%10%

12%

14%14%

16%17%

18%19%

20%21%

22% 23%23%

0

50

100

150

200

FY01 FY05 FY09 FY13 FY17

（JPY tn）

Equity holdings by individuals

Equity holdings by 5 on-line brokers

Proportion of equity holdings by 5 on-line brokers

Financial Summary

Section 1

7

Summary of Financial Results (1HF FY18)

Source: TSE

(JPY mn)

Operating Revenues 14,389 17,624 -18% 14,586 -1% 32,210

Commissions 7,756 10,451 -26% 8,517 -9% 18,968

Interest & dividend income 5,961 6,404 -7% 5,636 6% 12,040

670 769 -13% 432 55% 1,201

Interest expenses 612 996 -39% 734 -17% 1,729

Net operating revenues 13,777 16,628 -17% 13,852 -1% 30,480

SG & A 5,990 6,092 -2% 5,856 2% 11,949

Operating income 7,787 10,536 -26% 7,996 -3% 18,532

Ordinary income 7,869 10,581 -26% 8,051 -2% 18,632

Net income 5,465 7,339 -26% 5,570 -2% 12,908

Ordinary income ratio 55% 60% - 55% - 58%

14.6 19.1 -23% 16.5 -12% 35.6

3.3 3.8 -15% 3.1 6% 3.5

FY17

1HF

FY18

Matsui's trading value (JPY tn)

TOTALYoY

FY17

1HF 2HF HFoHF

Daily average trading

value on TSE (JPY tn)

Net trading income

8

Breakdown of Net Operating Revenue (1HF FY18)

(JPY mn)

Commissions 7,756 10,451 -26% 8,517 -9% 18,968

7,391 10,101 -27% 8,149 -9% 18,250

Equity & ETF 6,912 9,458 -27% 7,686 -10% 17,144

Futures & Options 479 643 -25% 464 3% 1,106

341 338 1% 360 -5% 698

Net trading income 670 769 -13% 432 55% 1,201

Interest & dividend income (1) 5,961 6,404 -7% 5,636 6% 12,040

Total operating revenues 14,389 17,624 -18% 14,586 -1% 32,210

Interest expenses (2) 612 996 -39% 734 -17% 1,729

Net operating revenues 13,777 16,628 -17% 13,852 -1% 30,480

Net interest income (1) - (2) 5,349 5,408 -1% 4,902 9% 10,310

Average margin balance (JPY bn) 308 317 -3% 272 13% 294

FY18 FY17YoY

FY17

1HF 2HF HFoHF 1HF TOTAL

Brokerage

Others

9

Breakdown of SG&A (1HF FY18)

(JPY mn)

Trading related expenses 2,058 2,416 -15% 2,176 -5% 4,592

616 807 -24% 720 -14% 1,527

Communications expenses 842 866 -3% 833 1% 1,699

Advertisement 227 300 -24% 236 -4% 536

1,223 1,195 2% 1,169 5% 2,364

Occupancy & rental 423 413 3% 432 -2% 845

1,123 1,058 6% 1,046 7% 2,104

Depreciation 837 798 5% 750 12% 1,549

189 212 -11% 194 -2% 406

65 -53 - 24 170% -29

Others 71 53 34% 64 11% 117

Total SG & A 5,990 6,092 -2% 5,856 2% 11,949

YoYFY17

1HF HFoHF 1HF TOTAL

Provision of allowance

for doubtful accounts

2HF

Stock exchanges and securities

associations fees

Personnel expenses

Data processing & office supplies

Taxes and dues

FY18 FY17

10

Summary of Financial Results (Quarterly)

Source: TSE

(JPY mn)

Operating Revenues 6,927 7,462 -7% 8,883 8,741 7,371 -6% 32,210

Commissions 3,723 4,034 -8% 5,217 5,234 4,183 -11% 18,968

Interest & dividend income 2,897 3,064 -5% 3,208 3,196 2,893 0% 12,040

Net trading income 306 364 -16% 458 311 294 4% 1,201

Interest expenses 293 319 -8% 425 570 414 -29% 1,729

Net operating revenues 6,634 7,143 -7% 8,458 8,170 6,957 -5% 30,480

SG & A 2,984 3,006 -1% 3,025 3,067 2,925 2% 11,949

Operating income 3,651 4,136 -12% 5,433 5,103 4,032 -9% 18,532

Ordinary income 3,653 4,216 -13% 5,431 5,150 4,034 -9% 18,632

Net income 2,535 2,930 -14% 3,773 3,566 2,790 -9% 12,908

Ordinary income ratio 53% 56% - 61% 59% 55% - 58%

6.8 7.9 -14% 9.4 9.7 7.9 -15% 35.6

3.2 3.3 -4% 4.0 3.7 3.0 6% 3.5

YoYFY17FY18

TOTAL2Q4Q 3Q2Q 1Q

FY17FY18QoQ

Matsui's trading value (JPY tn)

Daily average trading

value on TSE (JPY tn)

11

Breakdown of Net Operating Revenues (Quarterly)

(JPY mn)

Commissions 3,723 4,034 -8% 5,217 5,234 4,183 -11% 18,968

3,543 3,848 -8% 5,018 5,082 3,997 -11% 18,250

Equity & ETF 3,295 3,617 -9% 4,667 4,791 3,773 -13% 17,144

Futures & Options 248 231 7% 352 291 224 11% 1,106

177 164 8% 190 148 180 -2% 698

Net trading income 306 364 -16% 458 311 294 4% 1,201

Interest & dividend income (1) 2,897 3,064 -5% 3,208 3,196 2,893 0% 12,040

Total operating revenues 6,927 7,462 -7% 8,883 8,741 7,371 -6% 32,210

Interest expenses (2) 293 319 -8% 425 570 414 -29% 1,729

Net operating revenues 6,634 7,143 -7% 8,458 8,170 6,957 -5% 30,480

Net interest income (1) - (2) 2,605 2,744 -5% 2,783 2,625 2,479 5% 10,310

Average margin balance (JPY bn) 293 323 -9% 333 301 279 5% 294

TOTAL

FY17

2Q 1QQoQ

4Q

FY18 FY18YoY

3Q 2Q

FY17

Others

Brokerage

12

Breakdown of SG&A (Quarterly)

(JPY mn)

Trading related expenses 1,016 1,042 -3% 1,218 1,198 1,083 -6% 4,592

299 316 -5% 405 401 356 -16% 1,527

Communications expenses 420 422 -0% 443 423 418 1% 1,699

Advertisement 105 122 -14% 131 169 119 -12% 536

613 610 1% 594 601 589 4% 2,364

Occupancy & rental 213 210 1% 209 203 216 -1% 845

553 569 -3% 541 517 538 3% 2,104

Depreciation 424 413 3% 403 396 387 10% 1,549

89 101 -12% 111 101 93 -4% 406

51 14 260% -70 17 4 - -29

Others 24 47 -49% 19 34 16 55% 117

Total SG & A 2,984 3,006 -1% 3,025 3,067 2,925 2% 11,949

FY17

TOTAL

Personnel expenses

Data processing & office supplies

Taxes and dues

2Q1Q 4Q 3Q2Q

FY18QoQ

FY18YoY

FY17

Provision of allowance

for doubtful accounts

Stock exchanges and securities

associations fees

13

Regulatory Capital

◆ Capital adequacy ratio

(As of 30 September 2018)

◆ Margin trading balance and capital

adequacy ratio

(JPY mn)

Tier 1 (A) 73,253

Tier 2 Net unrealized gain on investment 2,509

Statutory reserves 2,987

Allowance for doubtful accounts 141

Sub total (B) 5,637

Assets to be deducted from equity capital (C) 6,998

(A) + (B) - (C) (D) 71,892

Total risk Market risk 549

Counterparty risk 5,411

Basic risk 2,871

Total (E) 8,833

Capital Adequacy ratio (D)/(E) 813%

Net Capital

188166 171

293309

330

258282

337

279

993%

1,143%1,211%

846%

771%843%

1,035% 1,035%

871%

813%

0

200

400

600

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY182Q

(JPY bn)

Margin trading balance Capital adequacy ratio

14

Dividend Payment for the past fiscal years

Note1: ROE ＝ Net income for fiscal year

(Total net assets at the beginning of fiscal year + Total net assets at the end of fiscal year) / 2

Note2: DOE ＝ Dividends per share (annual)

(Stockholders' equity per share at the beginning of fiscal year + Stockholders' equity per share at the end of fiscal Year) / 2 (Dividends on Equity)

Withdraw the upper limit of 100% on dividend payout ratio

FY12

FY07FY08

FY09

FY10

FY11

FY13

FY14

FY15FY16

FY17

20%

40%

60%

80%

100%

120%

5% 10% 15% 20% 25%

ROE

FY06

1

DOE2 8%

DPR 60%

Dividend Payout

Ratio (DPR)

ROE Target (above 8%)

Dividend Policy after the Revision

• Dividends Payout Ratio: 60% and above

and

• Dividends on Equity(DOE) : 8% and above

20 20 20 20 27 26

3020 25

13

17 19

39

50

40 45

33

44

84 79%

66%

78% 79%

88%

0

20

40

60

80

100

FY13 FY14 FY15 FY16 FY17 FY18(plan)

(Yen)

Year-end dividend Interim dividend

Commemorative dividend Payout ratio

15

Shareholders Return

15

◆ Matsui’s dividend per share and payout ratio2 ◆ Dividends for FY2018

Plan to pay interim dividend of 19 yen per share and

year-end dividend of 65 yen per share for FY18

Interim dividend : 19 yen

Dividends payout ratio : 89%

DOE : 10%

(ROE : 11%)

Year-end dividend : 65 yen

Ordinary dividend : 26 yen

Commemorative dividend : 39 yen

(Total amount of 10.0 billion yen)

Results of Operation

Section 2

6269 66 70 69

90 89

7267

44 43 42 45 44

56 57

47 45

19% 18% 19% 18%19%

20%19%

18%17%

0

50

100

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY tn)

Retail equity trading valueRetail margin trading valueProportion to total equity trading value

8.6 8.4 8.4 8.67.9

9.7 9.4

7.96.87.4

6.8 6.9 6.96.3

7.6 7.46.4

5.4

14%

12% 13% 12%12%

11% 11% 11%10%

0

5

10

15

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Matsui's trading valueMatsui's margin trading valueMatsui's share of retail trading value

(JPY tn)

17

Equity Trading Value

◆ Matsui’s equity trading value and

its market share1

◆ Retail equity trading value1 and

proportion to total equity trading value

Source: TSE

Note 1: Sum of the retail equity trading value on 2 major stock exchanges

FY16 FY17 FY18 FY16 FY17 FY18

2.2 2.1

2.6 2.5 2.6

3.0

3.63.3

2.8

56% 58% 56% 58% 58% 60%57% 58%

0.0

1.0

2.0

3.0

4.0

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY tn)

Total shares bought on margin tradingShare of 6 on-line brokers

19

7

19

0

23

7

22

7

23

1

27

7 30

8

28

9

23

8

59

55 67 65

66 73 82

80

73

9% 9% 9% 9% 9% 9%9% 9% 9%

0

100

200

300

400

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY bn)

Shares bought on margin tradingUnlimited margin tradingMatsui's share

18

Margin Trading Balance

◆ Matsui’s shares bought on margin1

and its market share2

◆ Total shares bought on margin1 and

share of 6 on-line brokers3

Source: TSE, Company Websites

Note1 : Balance as of the end of each quarter

Note2 : Total market share in 2 major stock exchanges

Note3: 6 on-line brokers are Matsui, SBI, Rakuten, Monex, Kabu.com and GMO Click

FY16 FY17 FY18 FY16 FY17 FY18

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

-60%

-45%

-30%

-15%

0%

15%

30%

45%

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

(JPY tn)

Matsui's shares bought on margin (right axis) Average (left axis)

Normal (left axis) Unlimited (left axis)

Shares listed on the emerging markets (left axis)

19

Unrealized Losses on Matsui’s Margin Balance

As of 19 October 2018

Average -11.8%

Normal margin balance -8.6%

Unlimited margin balance -20.0%

Margin balance of shares listed

on the emerging markets -16.7%

Note 1: Monthly data

1.521.40 1.32 1.30

1.151.36 1.30

1.100.94

0.0

1.0

2.0

3.0

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(X)

2,0

37

2,2

58

2,2

75

2,4

08

2,4

50

2,5

82

2,5

24

2,5

35

2,6

01

11

-14

10

10

5 -23

33

11 7

0

6,000

12,000

18,000

24,000

0

1,000

2,000

3,000

4,000

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY yen)(JPY bn)

Assets under Matsui's customers' accounts

Net inflow in cash and stocks

Nikkei 225

20

Assets under Customers’ Accounts / Trading Turnover

◆ Assets under Matsui’s customers’ accounts

◆ Equity trading turnover1 of Matsui’s

customers

Note 1: Equity trading turnover = (monthly average trading value) / (quarterly average assets

under customers’ accounts*)

* assets under customers’ accounts of Matsui’s related persons are excluded

Note 2: Nikkei 225 is the closed price at the end of each quarter

Nikkei 225 closed at 24,120

on September 2018

FY16 FY17 FY18 FY16 FY17 FY18

800,000

900,000

1,000,000

1,100,000

1,200,000

Jul-17 Oct-17 Jan-18 Apr-18 Jul-18

# of accounts # of new accounts

Proportion of beginner

21

Number of Accounts / Breakdown of Trading Value

◆ Breakdown of trading value by customers

opening the accounts in each fiscal year

Note 1: Number of accounts as of the end of each month.

◆ Number of accounts at Matsui1

# of accounts 1,156,564

# of margin accounts 187,750

(as of Sep. 2018)

Sep. 2018

50%

0%

20%

40%

60%

80%

100%

FY13 FY14 FY15 FY16 FY17 2QFY18

Before FY05

FY06 FY07 FY08 FY09

FY10 FY11 FY12 FY13 FY14

FY15 FY16 FY17 FY18

2.3

3.7

2.9

2.52.8

2.12.4

1.71.4

75 7961

125

205188

227 221235

0

50

100

150

200

250

0.0

1.0

2.0

3.0

4.0

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY mn)(JPY tn)

NetFx trading value NetFx commission

9.110.4

12.411.6

10.7

14.4

17.6

12.514.1

4.2 4.36.0

4.94.0

5.37.1

5.26.0

20%21%

22% 21%21%

17%19% 20% 20%

0

5

10

15

20

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

(JPY tn)

Futures trading valueTrading value of Futures trading service for day-tradesMatsui's share

22

Futures Trading Value / FX Margin Trading Value

◆ Matsui’s OSE Nikkei 225 Futures

trading value and its market share1

◆ Matsui’s OTC FX trading value and

commission

Note1 : Source : OSE

Note2 : The Company changed the definition of FX trading value from 1QFY17 and correct the past value data due to

transform brokerage business model into trading business model.

May 2017

Restructure of the FX

margin trading business2

FY16 FY17 FY18 FY16 FY17 FY18

6.5

8.49.3

10.6

301

400

479

558

0

5

10

3Q 4Q 1Q 2Q

(JPY bn)

AUM of mutual fund Number of mutual fund

3.8

4.7

3.22.9

0.5 0.6 0.7 0.70.0

2.0

4.0

6.0

3Q 4Q 1Q 2Q

（JPY bn）

Mutual fund sales Saving type of investment

23

Mutual Fund

◆ Matsui’s AUM and line-up of mutual fund ◆ Matsui’s mutual fund sales

Note: Mutual fund data is not included ETF and MMF

FY17 FY18 FY17 FY18

Recent Developments

Section 3

25

Management Strategy / Business Strategy

We are to provide superior quality of trading platform

for retail investors based upon "customer-centric approach" Business Principle

Management Strategy

Maintain its low-cost operation and maximize the income by focusing

on profitable online based brokerage business

Enhance equity brokerage business as core business

Expand its line-up of products and services by maintaining its low-

cost operation

Expand Futures, FX, Mutual fund services

Business Strategy

Enhance trading service

for active customers

Expand asset service

for customers who are building

assets for the future

Equity Futures FX Mutual

Fund

Crowd-

funding

◆ Features

Establish our matching system and dark-pool

to match our retail clients order directly with

institutional investors’ order

Provide better execution in case that indication

from the dark-pool is better than the TSE

◆ Improve recognition of the service

Ensuring transparency of the service by

actively disclosing the trading results at our

matching system

Report the price improvement results for

each transaction

Monitor the latency on execution of the order

Disclose the result of analysis for price

improvements

26

Equity Business: Better Execution Service I

Started providing better execution service to seek price improvement opportunity for

retail clients from May 2018

◆ Order flow

Floor trading Off floor

trading

Matsui

Retail Clients’ order

Institutional

investors’ order

Matching system

(Dark-pool)

TSE

YES NO Matching

availability

TSE 1st

Large-cap

Middle-cap

Small-cap

Others

Tse 2nd

JASDAQ

Mothers

ETF

REIT

Total

1.5 bps

1.8 bps

2.8 bps

6.8 bps

5.7 bps

5.0 bps

0.7 bps

2.5 bps

3.8 bps

27

Disclose the monthly result of statistic analysis for price improvements

2%1%

1%

36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

◆Average price improvement rate is 2.8bps

Improvement rate in TSE 2nd and emerging

market is higher than others due to its wide

spread.

Price improvement of each market

◆Provide better prices on 40% of order which

is executed in the dark-pool

Price range of execution in dark-pool

2%：Bid price at TSE*

1%：Between bid price and mid price

1%：Mid price

36%：Between offer price and mid price

60%：Offer price at TSE*

*In case of buying order

2%1%

1%36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

2%1%

1%36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

2%1%

1%36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

2%1%

1%36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

2%1%

1%36%

60%

注文側最良気配と同値

注文側最良気配と仲値の間

仲値

対当側最良気配と仲値の間

対当側最良気配と同値

Price

Improvement

Equity Business: Better Execution Service II

Note : As of September 2018

28

Equity Business: Stock Lending Service

Started monetizing the equity assets under management from October 2018

◆Stocks with high lending rate2 ◆Features

Select 1,000 stocks which offer relatively high

lending rate

Offer 0.2% of minimum lending rate which is

the best rate among major on-line brokers1

Utilize stock lending inventory for the Premium

Short-Selling Service

Customer

Stock Stock

◆Promotion

Currently special offers are available to promote

the service; raise the minimum lending rate from

0.2% to 2% on listed stocks in TSE Mothers and

JASDAQ from 22 Oct. to 28 Dec. 2018.

Lending Fee Lending Fee Matsui

Note1: Major on-line brokers are Matsui, SBI, Rakuten, Monex, Kabu.com and GMO Click. Lending rate is on an annual basis.

Note2: As of 26th October 2018

Stock Lending rate

PKSHA Technology Inc. (3993) 13.00%

Ignis Ltd. (3689) 9.00%

ASJ Inc. (2351) 5.00%

FFRI, Inc. (3692) 5.00%

Brangista. Inc. (6176) 5.00%

Lending Market

9%

17%

22%24%

26%10's and under20's

30's

40's

5%

20%

25%22%

22%

6%10's and under

20's

30's

40's

50's

60's

70's and over

52% 48%

0% 20% 40% 60% 80% 100%

Portfolio / Bulk Cherry-pick

29

Mutual Fund Business

◆ Future Developments

Support long-term diversified investment for

asset building generation

→Promote use of portfolio management

platform

→Started periodic deposit service (Oct. 2018)

→Started original point service “Matsui

Securities Point” (Oct. 2018)

Response to the needs of retired generation

→Expand the line-up of mutual funds to meet

the needs of cherry-picking individual mutual

funds

→Plan to start deal with lord fund and refund

the sales commission by point (Nov. 2018)

◆ AUM by type of investment2

◆ AUM by age2

Portfolio / Bulk Cherry-pick

Note1: Excluding bull/ bear funds. Sales commission of lord fund is refunded by points.

Note2: As of September 2018

“Basic Policy on Mutual Fund Sales”

policy1: Not Charging sales commission1

policy2: Not Dealing with the mutual funds which include covered-call or currency option due to its complicated structure for retail investors

Implement continuous improvements of mutual fund services and differentiate our

sales strategy based on the basic policy

0.3 0.2 0.2

0.50.7

0.90.9

1.3

1.7

0.0

0.5

1.0

1.5

2.0

2Q 3Q 4Q 1QFY17

2Q 3Q 4Q 1QFY18

2Q

(bp)

Profit margin on FX trading value

30

Future Initiatives: FX Margin Trading Business

FX Margin Trading Business:

Improve Customer Service (FY2018)

Renew the trading platform for clients

Enhance promotion for customer acquisition

⇒Expand trading value and revenue from

FX margin trading business（FY 2018）

(Recent development)

Restructuring of the business model (May 2017)

⇒Transformed brokerage business model

into the trading business model to improve

profitability

Improve the LINE account service for FX

margin trading (Nov. 2018)

List of Features

Market information

Notification feature as to

rapid market movement

⇒Expand the type of notification

Order function from LINE application

⇒Enhance the connection of order function

between LINE account and trading tool for

PC

Rank NISA Saving Type of NISA

1 Japan Tobacco Inc. (2914) Hifumi Plus

2 Mizuho Financial Group, Inc. (8411) Rakuten US All Equity Index Fund

3 Nissan Motor Co., Ltd. (7201)eMAXIS Slim Developed Country

Equity Index

4 Skylark Holdings Co., Ltd. (3197)Nissay Foreign Equity Index Fund

no charge

5 KDDI Corp. (9433)Rakuten All Country Equity Index

Fund

NISASaving type

of NISAJunior NISA

Total number of accounts 136,078 2,954 4,249

Number of active accounts164,482 1,565 2,099

Active account ratio 47% 53% 49%

Total investment value(JPY mn)249,418 245 1,015

Customers' assets(JPY mn)3113,676 253 2,063

16%

31%30%

15%

6%2%

20's 30's40's 50's60's Over 70's

6%

17%

23%

18%

20%

16%

Accounts by age

20's 30's40's 50's60's Over 70's

31

NISA

Main user of saving type of NISA is asset building generation (40’s and under)

◆ Number of NISA accounts and customers’ assets

(as of September 2018)

Note 1 : NISA account which has at least one transaction since Jan. 2018.

Note 2 : Total purchased amount that has delivered since Jan. 2018.

Note 3 : Total amount that has purchased since 2014.

◆ Top 5 in trading value

(from January to September 2018)

◆ Attribution of NISA accounts by age

(as of September 2018)

NISA

Saving type of NISA

16%

32%

30%

15% 5%2%

20's

30's

40's

50's

60's

Over 70's

The material is intended to provide the financial results for the quarter ended 30 September 2018 and

the company‘s business strategy, and does not constitute a solicitation of an offer to buy the securities

issued by the company. The material is created based upon information as of 26 October 2018. The

information herein identifies our views at the time of creation of the material, and the company does

not make any representation or warranty as to its accuracy or completeness, therefore, the information

may be changed without any notices. The company does not assume responsibility for any omissions

or errors of any data and descriptions in the material.

This presentation may contain forward looking information. Please keep in mind that they are based on

projections of the company and subject to changes depending on the situation. We will under no

circumstances assume the obligation to revise this presentation in case such situation occurs.

Matsui Securities Co., Ltd. URL: http://www.matsui.co.jp/ir/en/

Tel: +81-3-5216-0784 Fax: +81-3-5216-8638

Mail: ir@matsui.co.jp

Akira WARITA, Managing Director : a-warita@matsui.co.jp

Masatoshi Yoshizawa : m-yoshizawa@matsui.co.jp

Contact information