Japan Securities Finance : Financial Presentation for 1Q, FY2025

About this update from Japan Securities Finance Co., Ltd.

‌The First Quarter of FY 2025 Financial Results Presentation Japan Securities Finance Co., Ltd. August 7, 2025 This document has been translated from the Japanese original for reference purposes only. Although Japan Securities Finance intends this to serve as a faithful translation of the Japanese original, we do not guarantee the accuracy and correctness of the translation and encourage you to refer to the Japanese original. 2 ‌Table of Contents Overview of Financial Results for the First Quarter of FY 2025 1 ． Executive summary (Consolidated) Ｐ 3 2 ． Summary Financial Results for the First Quarter of FY 2025 Ｐ 4 3 ． Summary Financial Results for the First Quarter of FY 2025 (Non-Consolidated) Ｐ 5 4 ． Gross Profit by Business (Non-Consolidated) Ｐ 6 5 ． Summary of Financial Results for the First Quarter of FY 2025 (JSF Trust Bank ） Ｐ 7 6 ． Performance Forecasts for FY 2025 Ｐ 8 7 ． Shareholder Returns in FY 2025 Ｐ 9 ‌Executive Summary (Consolidated) (¥ mn) First Quarter of FY 2025 YoY Chg. % YoY Chg. Highlights Operating profit 3,106 -272 -8.1% uncertainty. Ordinary profit 3,364 -316 -8.6% Profit attributable to owners of parent 2,369 -1,010 -29.9% While loans for margin transactions and equity repo transactions continued to show steady performance, interest margins narrowed for bond repo and gensaki transactions due to interest rates fluctuating within a certain range in short-term financial markets under the The extraordinary gain of 1,163 million yen recorded in the same period of the previous year, which was associated with the sale of real estate held by a consolidated subsidiary, has dropped out. ‌Summary Financial Results for the First Quarter of FY 2025 (¥ mn) Consolidated Non-consolidated First Quarter of FY 2025 YoY Chg. % YoY Chg. JSF JSF Trust Bank Nihon Building YoY Chg. YoY Chg. YoY Chg. Operating revenues (Except premium charges) 22,740 +11,388 (+100.3%) 20,457 +10,241 2,183 +1,211 281 -31 Including premium charges 23,854 +11,456 (+92.4%) 21,572 +10,309 Operating expenses (Except premium charges) 17,740 +11,687 (+193.1%) 16,506 +10,563 1,307 +1,152 6 0 Including premium charges 18,853 +11,764 (+165.9%) 17,619 +10,639 General & administrative expenses 1,893 -35 (-1.8%) 1,524 +2 314 -59 159 24 Operating profit 3,106 -272 (-8.1%) 2,427 -332 561 +117 115 -56 Ordinary profit 3,364 -316 (-8.6%) 5,238 +995 562 +117 226 -10 Gain or loss in equity-method 57 -45 (-44.1%) Extraordinary profit or loss - -1,163 (-100.0%) - (―) - (―) - -1,163 Profit attributable to owners of parent /Net income 2,369 -1,010 (-29.9%) 4,492 +1,088 388 86 152 -767 ‌Summary of Financial Results for the First Quarter of FY 2025 (Non-Consolidated) Key Points Japan Securities Finance （ Non-consolidated ） (¥ mn) First Quarter of FY 2025 YoY Chg. % YoY Chg. Operating revenues *1 20,457 +10,241 (+100.2%) Operating expenses *1 16,506 +10,563 (+177.7%) Gross profit 3,952 -330 (-7.7%) Margin loan business *1 1,163 +102 (+9.6%) Securities financing *2 1,737 -215 (-11.1%) Others （ mainly securities investment ） 1,052 -216 (-17.1%) General & administrative expenses 1,524 +2 (+0.1%) Operating profit 2,427 -332 (-12.1%) Ordinary profit 5,238 +995 (+23.5%) Extraordinary profit or loss - - (―) Net income 4,492 +1,088 (+32.0%) *1 Excluding premium charge *2 Equity repo, Bond repo and gensaki transactions, Loans for negotiable margin transactions, General stock lending, Retail loans Gross profit While loans for margin transactions and equity repo transactions continued to show steady performance, interest margins narrowed for bond repo and gensaki transactions due to interest rates fluctuating within a certain range in short-term financial markets under the uncertainty. In securities investment operations, the company implemented carry revenue accumulation and executed portfolio substitution. Ordinary profit Dividends received from consolidated subsidiaries increased (due to adjustments in the dividend payment method for JSF Trust and Banking, and higher profits from real estate sales in the previous fiscal year for Nihon Building). Both had no impact on consolidated results due to elimination of intercompany transactions. ‌Gross Profit by Business (Non-Consolidated) (¥ mn) Type of transaction First Quarter of FY 2025 YoY Chg. % YoY Chg. Key Points Loans for margin transactions (Margin loan/Stock loan) 1,163 ＋102 （+9.6％) Securities financing Equity repo transactions 479 +19 (+4.3%) Bond repo and gensaki transactions 786 -295 (-27.3%) Loans for negotiable margin transactions 99 +28 (+39.3%) General stock lending 238 +20 (+9.2%) Loans to retail 133 +11 (+9.3%) Total 1,737 -215 (-11.1%) Securities Investment 1,052 -216 (-17.1%) Increased in profit due to the steady stock market development and changes in the interest rate conditions. Showed steady performance in equity repo transaction mainly due to increased demand for funds from securities companies by changes in interest rate conditions. While balances remained flat due to steady demand for collateral use and international financial regulatory compliance, interest margins narrowed due to interest rates fluctuating within a certain range in short-term financial markets under the uncertainty. Increased in profit due to increased demand for funds due to steady stock market development. Increased in profit due to demand for fail-cover purposes. Increased in profit due to steady stock market conditions. The company implemented carry revenue accumulation and executed portfolio substitution. Key Points Trust fees Trust fees from services such as custodial trust services remained steady. ‌Summary of Financial Results for FY 2025 (JSF Trust Bank ） JSF Trust Bank (Non-consolidated) (¥ mn) First Quarter of FY 2025 YoY Chg. % YoY Chg. Ordinary revenues 2,195 +1,222 （+125.6%） Trust fees 424 -4 （-0.9%） Ordinary expenses 1,632 +1,104 （+209.2%） Ordinary profit 562 +117 （+26.4%） Net income 388 +86 （+28.5%） ‌Performance Forecasts for FY 2025 (No changes since the last announcement) （ ¥ mn ） FY 2025 Performance Forecasts Y o Y Change from previous forecasts Consolidated Operating profit 12,400 +1,070 > Ordinary profit 13,200 +692 > Profit attributable to owners of parent 9,400 -975 > JSF Operating profit 10,300 +1,269 > Ordinary profit 12,900 +2,292 > Net income 9,600 +1,113 > JSF Trust and Banking Ordinary profit 1,773 +17 > Net income 1,230 +3 > Nihon Building Operating profit 435 -89 > Ordinary profit 695 -20 > Net income 455 -782 > ‌Shareholder Returns (No changes since the last announcement) Shareholder Return Policy Continue to aim for a total payout ratio of 100% on a cumulative basis from FY 2023 through FY 2025, through dividends and flexible implementation of share buy-backs. Dividends per share and Share Buy-Back amount The ordinary dividend is expected to increase by ¥12 * The estimated performance for FY 2025 was released on May 15, 2025. Total payout ratio: 100.0 ％ *based on performance forecasts In the above chart, dividends per share in FY 2025 are forecasts and share buy-back amount is maximum amount of repurchase. Dividend forecast: ¥80 Share buy-back (maximum): ¥2.8 bn, 1.7 mn shares ‌This document includes statements relating to business forecasts. These statements do not guarantee future business performance; they contain risks and uncertainties. Future business performance may vary significantly depending on the stock market and financial conditions or other factors.

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