Japan Securities Finance : Financial Presentation for 2Q, FY2025

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

‌The Second Quarter of FY 2025 Financial Results Presentation Japan Securities Finance Co., Ltd. November 13, 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 Second Quarter of FY 2025 1 ． Executive summary (Consolidated) Ｐ 3 2 ． Summary Financial Results for the Second Quarter of FY 2025 Ｐ 4 3 ． Summary Financial Results for the Second Quarter of FY 2025 (Non-Consolidated) Ｐ 5 4 ． Gross Profit by Business (Non-Consolidated) Ｐ 6 5 ． Summary of Financial Results for the Second 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 (Appendix) ‌Executive Summary (Consolidated) (¥ mn) Second Quarter of FY 2025 YoY Chg. % YoY Chg. Highlights Operating profit 6,894 +617 +9.8% Ordinary profit 7,317 +486 +7.1% Profit attributable to owners of parent 5,144 -1,072 -17.3% Loans for margin transactions and equity repo transactions continued to show steady performance. The extraordinary gain recorded in the same period of the previous year was eliminated. ‌Summary Financial Results for the Second Quarter of FY 2025 (¥ mn) Consolidated Non-consolidated Second 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) 46,943 +21,731 (+86.2%) 42,067 +19,348 4,656 +2,481 564 -58 Including premium charges 50,882 +23,391 (+85.1%) 46,005 +21,007 Operating expenses (Except premium charges) 36,116 +20,952 (+138.2%) 33,391 +18,603 2,849 +2,375 12 0 Including premium charges 40,048 +22,618 (+129.8%) 37,322 +20,270 General & administrative expenses 3,939 +154 (+4.1%) 3,063 +81 765 +80 320 -1 Operating profit 6,894 +617 (+9.8%) 5,619 +655 1,041 +25 231 -58 Ordinary profit 7,317 +486 (+7.1%) 8,443 +1,987 1,042 +25 378 +13 Gain or loss in equity-method 174 -165 (-48.6%) Extraordinary profit or loss - -1,828 (-100.0%) - -664 - - - -1,163 Profit attributable to owners of parent /Net income 5,144 -1,072 (-17.3%) 6,718 +1,199 721 ＋18 251 -751 Gross profit Profit In securities financing showed steady performance in loans for margin transactions and equity repo transactions, despite narrower interest margins for bond repo and gensaki transactions. Profit In securities investment increased due to the accumulation of carry revenue and the implementation of portfolio rebalancing. As a result, operating profit increased by 9.3% over the previous year. 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. , ‌Summary of Financial Results for the Second Quarter of FY 2025 (Non-Consolidated) Key Points Japan Securities Finance （ Non-consolidated ） (¥ mn) Second Quarter of FY 2025 YoY Chg. % YoY Chg. Operating revenues *1 42,067 +19,348 (+85.2%) Operating expenses *1 33,391 +18,603 (+125.8%) Gross profit 8,682 +737 (+9.3%) Margin loan business *1 2,957 +743 (+33.6%) Securities financing *2 3,430 -291 (-7.8%) Others （mainly securities investment） 2,294 +285 (+14.2%) General & administrative expenses 3,063 +81 (+2.7%) Operating profit 5,619 +655 (+13.2%) Ordinary profit 8,443 +1,987 (+30.8%) Extraordinary profit or loss - -664 (-100.0%) Net income 6,718 +1,199 (+21.7%) *1 Excluding premium charge *2 Equity repo, Bond repo and gensaki transactions, Loans for negotiable margin transactions General stock lending, Retail loans ‌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) 2,957 ＋743 （+33.6％) Securities financing Equity repo transactions 972 +101 (+11.6%) Bond repo and gensaki transactions 1,536 -529 (-25.6%) Loans for negotiable margin transactions 197 +45 (+30.2%) General stock lending 443 +63 (+16.8%) Loans to retail 280 +27 (+10.9%) Total 3,430 -291 (-7.8%) Securities Investment 2,294 +285 (+14.2%) Increased in profit due to the steady stock market development and changes in the interest rate conditions. Increase in profit due to increased demand for funds from securities companies in response to changes in interest rate conditions. Balances remained flat amid steady demand for collateral use and compliance with international financial regulations, however interest margins narrowed due to interest rates fluctuating within a narrow range in short-term markets. 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. Increased in profit due to carry revenue accumulation and the effect of portfolio substitution. Key Points Trust fees Maintained steady performance in trust fees from services such as custodial trust services. ‌Summary of Financial Results for the Second Quarter of FY 2025 (JSF Trust Bank ） JSF Trust Bank (Non-consolidated) (¥ mn) First Quarter of FY 2025 YoY Chg. % YoY Chg. Ordinary revenues 4,656 +2,480 （+114.0%） Trust fees 876 ＋39 （＋4.6%） Ordinary expenses 3,614 +2,455 （+211.8%） Ordinary profit 1,042 +25 （+2.4%） Net income 721 +18 （+2.6%） ‌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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