Japan Securities Finance : Financial Presentation for 4Q, FY2025

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

‌FY 2025 Financial Results Presentation Japan Securities Finance Co., Ltd. May 14, 2026 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. ‌Table of Contents Overview of Financial Results for FY 2025 P 3 - 9 1 ． Executive summary (Consolidated) Ｐ 3 2 ． Summary Financial Results for FY 2025 Ｐ 4 3 ． Summary Financial Results for FY 2025 (Non-Consolidated) Ｐ 5 4 ． Gross Profit by Business (Non-Consolidated) Ｐ 6 5 ． Summary of Financial Results for FY 2025 (JSF Trust Bank ） Ｐ 7 6 ． Performance Forecasts for FY 2026 Ｐ 8 7 ． Shareholder Returns in FY 2026 Ｐ 9 2 ‌Executive Summary (Consolidated) The consolidated financial results show that both ordinary profit and profit attributable to owners of parent have reached record highs. (¥ mn) FY 2025 Full Year YoY Chg. % YoY Chg. Highlights Operating profit 14,016 +2,686 +23.7% Ordinary profit 14,996 +2,489 +19.9% Profit attributable to owners of parent 10,611 +235 +2.3% 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 FY 2025 (¥ mn) Consolidated Non-consolidated FY 2025 Full Year YoY Chg. % YoY Chg. JSF JSF Trust Bank Nihon Building YoY Chg. YoY Chg. YoY Chg. Operating revenues (Except premium charges) 105,300 +49,966 (+90.3%) 94,174 +45,154 10,567 +4,829 1,138 -70 Including premium charges 114,211 +54,724 (+92.0%) 103,085 +49,913 Operating expenses (Except premium charges) 83,463 +46,857 (+128.0%) 77,326 +43,193 6,272 +3,577 28 +4 Including premium charges 92,354 +51,614 (+126.7%) 86,217 +47,951 General & administrative expenses 7,840 +423 (+5.7%) 6,099 +225 1,511 +222 647 -13 Operating profit 14,016 +2,686 (+23.7%) 10,768 +1,736 2,783 +1,028 462 -61 Ordinary profit 14,996 +2,489 (+19.9%) 13,833 +3,224 2,783 +1,028 745 +30 Gain or loss in equity-method 354 -420 (-54.3%) Extraordinary profit or loss - -1,828 (-100.0%) - -664 - (―) - -1,163 Profit attributable to owners of parent /Net income 10,611 +235 (+2.3%) 10,559 +2,071 1,924 ＋697 495 -742 Gross profit Profits from loans for margin transactions maintained strong performance. Profits from securities financing showed steady performance in equity repo transactions, despite the narrowing interest margins for bond repo and gensaki transactions. In securities investment, we have implemented portfolio rebalancing. As a result, the gross profit increased by 13.2% 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 FY 2025 (Non-Consolidated) Key Points Japan Securities Finance （ Non-consolidated ） (¥ mn) FY 2025 Full Year YoY Chg. % YoY Chg. Operating revenues *1 94,174 +45,154 (+92.1%) Operating expenses *1 77,326 +43,193 (+126.5%) Gross profit 16,867 +1,962 (+13.2%) Margin loan business *1 6,977 +2,591 (+59.1%) Securities financing *2 7,095 -248 (-3.4%) Securities investment, etc. 2,794 -381 (-12.0%) General & administrative expenses 6,099 +225 (+3.8%) Operating profit 10,768 +1,736 (+19.2%) Ordinary profit 13,833 +3,224 (+30.4%) Extraordinary profit or loss - -664 (-100.0%) Net income 10,559 +2,071 (+24.4%) *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) Type of transaction FY 2025 Full Year YoY Chg. % YoY Chg. Key Points Loans for margin transactions (Margin loan/Stock loan) 6,977 ＋2,591 （+59.1％) Securities financing Equity repo transactions 2,166 +406 (+23.1%) Bond repo and gensaki transactions 3,085 -972 (-24.0%) Loans for negotiable margin transactions 426 +68 (+19.0%) General stock lending 833 +170 (+25.7%) Loans to retail 583 +78 (+15.6%) Total 7,095 -248 (-3.4%) Securities investment, etc. 2,794 -381 (-12.0%) Increased in profit due to the steady stock market performance and changes in interest rate conditions. Increased in profit due to enhanced demand for funds from securities companies in response to changes in interest rate conditions. Balances were maintained slightly above the previous year 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 driven by enhanced demand for funds amid steady stock market performance. Increased in profit due to demand for fail-cover purposes. Increased in profit due to steady stock market performance. Implemented portfolio rebalancing. (¥ mn) Key Points Ordinary profit Increased in profit due to steady performance in trust fees from services such as custodial trust services and the rise in interest income resulting from changes in the interest rate conditions. ‌Summary of Financial Results for FY 2025 (JSF Trust Bank ） JSF Trust Bank (Non-consolidated) (¥ mn) FY 2025 Full Year YoY Chg. % YoY Chg. Ordinary revenues 10,568 +4,829 （+84.1%） Trust fees 1,807 +116 （＋6.8%） Ordinary expenses 7,784 +3,800 （+95.4%） Ordinary profit 2,783 +1,028 （+58.5%） Net income 1,924 +697 （+56.8%） ‌Performance Forecasts for FY 2026 （¥ mn） FY 2026 Performance Forecasts Y o Y Consolidated Operating profit 14,400 +383 Ordinary profit 15,800 +803 Profit attributable to owners of parent 11,000 +388 JSF Operating profit 10,525 -243 Ordinary profit 13,402 -431 Net income 10,230 -329 JSF Trust and Banking Ordinary profit 3,448 +664 Net income 2,362 +437 Nihon Building Operating profit 455 -7 Ordinary profit 700 -45 Net income 585 +89 ‌Shareholder Returns Shareholder Return Policy To enhance shareholder returns, JSF will aim for a total payout ratio of 100% until it achieves an ROE of 8%, by paying dividends and flexibly repurchasing shares. Dividends per share and Share Buy-Back amount Share buy-back (maximum): ¥3.4 bn, 1.8 mn shares * In the above chart, dividends per share in FY 2026 are forecasts and share buy-back amount is maximum amount of repurchase. Dividend forecast: ¥94 Total payout ratio: 99.8 ％ *based on performance forecasts ‌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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