Japan Exchange : Jan. 30, 2023JPXDisclosure Consolidated financial results for the nine months ended December 31, 2022 (Based on IFRS), unaudited

(Reference Translation)

January 30, 2023

Japan Exchange Group, Inc. and Consolidated Subsidiaries

Consolidated financial results for the nine months ended December 31, 2022

(Based on IFRS), unaudited

Company name:	Japan Exchange Group, Inc.	Stock Exchange Listings: Tokyo
Code number:	8697	URL: https://www.jpx.co.jp/english/
Representative:	Kiyota Akira, Director & Representative Executive Officer, Group CEO
Contact:	Lin Kay, Executive Officer (Corporate Communications and Investor Relations)
Scheduled date of filing of quarterly report:	February 13, 2023
Scheduled date of start of dividend payment:	－
Preparation of 3Q earnings presentation material:	Yes
Holding of 3Q earnings announcement:	None

1. Consolidated financial results for nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(Figures less than a million yen are omitted)

(1) Consolidated operating results (cumulative)

(Percentages represent changes year on year)

Operating

revenue

Operating

income

Income before

income tax

Net income

Net income

attributable to owners of the parent company

Comprehensive

income

	Mil. yen		%	Mil. yen	%	Mil. yen		%		Mil. yen	%	Mil. yen	%	Mil. yen	%
Nine months ended	100,529		(0.1)	51,765		(7.5)	51,736		(7.5)		35,894	(7.5)	35,175	(7.5)	35,871	(8.0)
December 31, 2022
Nine months ended	100,586		3.4	55,967		2.9	55,936		2.7		38,808	2.4	38,013	1.7	39,006	(0.4)
December 31, 2021
	Basic earnings		Diluted earnings
		per share				per share
				yen					yen
Nine months ended				66.76
December 31, 2022								－
Nine months ended				71.71
December 31, 2021								－

(2) Consolidated financial position

Total assets

Total equity

Total equity attributable to

owners of the parent

company

Ratio of total equity

attributable to owners of the parent company to total assets

	Mil. yen	Mil. yen	Mil. yen
As of December 31,	79,205,861	320,021	311,103
2022
As of March 31, 2022	71,463,434	323,852	315,653

%

0.4

0.4

Note: Sizable amounts of "clearing business financial assets and liabilities" and "deposits from clearing participants" pertaining to clearing business conducted by consolidated subsidiary Japan Securities Clearing Corporation are included in assets and liabilities of JPX Group (meaning JPX and its subsidiaries). For JPX Group's financial position excluding "clearing business financial assets and liabilities" and "deposits from clearing participants", etc., see "1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION - (2) Explanation on Financial Position" on page 4 of the Appendix.

2. Dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	yen	yen	yen		yen	yen
Year ended		26.00			46.00	72.00
March 31, 2022	－	－
Year ending		26.00
March 31, 2023	－	－
Year ending March 31,					36.00	62.00
2023 (Forecast)

Note 1: Change in dividends forecast from the most recent announcement: Yes

The year-end dividend forecast has been revised from that stated in "Consolidated financial results for the fiscal year ended March 31, 2022 (Based on IFRS), unaudited" disclosed on April 26, 2022. For details, please refer to "Decision on Matters Regarding Acquisition of Own Shares (based on Provisions of the Articles of Incorporation Pursuant to Article 459, Paragraph 1 of the Companies Act) and Revision to Dividend Forecast" disclosed today.

Note 2: Breakdown of year-end dividend for the fiscal year ended March 31, 2022: ordinary dividend ¥31; special dividend ¥15.

Note 3: Breakdown of year-end dividend for the fiscal year ended March 31, 2023 (forecast): ordinary dividend ¥26; commemorative dividend ¥10.

3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) (Percentages represent changes year on year)

										Net income
	Operating	Operating	Income before	Net income	attributable to	Basic earnings
	revenue		income	income tax	owners of the	per share
										parent company
	Mil. yen		%	Mil. yen	%	Mil. yen	%	Mil. yen	%	Mil. yen	%	yen
Year ending	132,500		(2.2)	65,500	(10.9)	65,500	(10.8)	45,500	(10.5)	45,000	(9.9)	85.42
March 31, 2023

Note: Change in earnings forecast from the most recent announcement: None

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of consolidation): None
2. Changes in accounting policies/changes in accounting estimates

1. Changes in accounting policies due to revisions in accounting standards under IFRS: None
2. Changes in accounting policies other than the above: None
3. Changes in accounting estimates: Yes

• For details, please refer to "(Changes in Accounting Estimates)" of "2.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES - (5) Notes on Condensed Consolidated Financial Statements" on page 12 of the Appendix.

1. Number of issued shares (common shares)

1. Number of issued shares at the end of the period (including treasury shares):

	As of December 31, 2022:	528,578,441
	As of March 31, 2022:	528,578,441
2)	Number of treasury shares at the end of the period:
	As of December 31, 2022:	1,861,043
	As of March 31, 2022:	1,037,782
3)	Average number of shares:
	Nine months ended December 31, 2022:	526,874,759
	Nine months ended December 31, 2021:	530,119,112

• This release is outside the scope of the quarterly review by certified public accountants and audit firms.
• Explanation on appropriate use of forecast and other special items

This material contains an earnings forecast and other forward-looking statements which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors may cause actual results, etc. to be materially different from those expressed in these forward-looking statements.

DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Japan Exchange Group, Inc., and/or its affiliates shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

(Appendix)

Contents of Appendix

1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION …2
2. 1. Explanation on Operating Results …2
   2. Explanation on Financial Position …4
   3. Explanation on Forecast Information such as Consolidated Earnings Forecast, etc. …5
3. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES …6
4. 1. Condensed Consolidated Statement of Financial Position …6
   2. Condensed Consolidated Statement of Income …8
   3. Condensed Consolidated Statement of Comprehensive Income …9
   4. Condensed Consolidated Statement of Changes in Equity …10
   5. Notes on Condensed Consolidated Financial Statements …12

(Note on Going-Concern Assumption) …12 (Changes in Accounting Estimates) …12 (Operating Revenue) …12

(Operating Expenses) …12

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1. QUALITATIVE INFORMATION ON OPERATING RESULTS AND FINANCIAL POSITION

1. Explanation on Operating Results

During the consolidated cumulative third quarter (from April 1, 2022 to December 31, 2022), JPX Group recorded operating revenue of ¥100,529 million (decreased 0.1% from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥50,206 million (increased 10.2% year on year). As a result, JPX Group recorded operating income of ¥51,765 million (decreased 7.5% year on year) and income before income tax of ¥51,736 million (decreased 7.5% year on year).

In addition, net income attributable to owners of the parent company after tax was ¥35,175 million (decreased 7.5% year on year).

(Operating revenue)

1) Trading services revenue

Trading services revenue is comprised of "transaction fees" based on the value of cash equities traded or volume of financial and commodity derivatives traded, "basic fees" based on the types of the trading participant's trading qualification, "access fees" based on the number of orders, "trading system facilities usage fees" based on the types of trading system facilities used, and other similar fees.

During the consolidated cumulative third quarter, trading services revenue increased 2.9% year on year to ¥39,972 million due mainly to an increase in revenue from transaction fees resulting from year-on-year increases in trading value of cash equities and trading volume of financial derivatives.

Breakdown of trading services revenue

			(Mil. yen)
	Nine months ended	Nine months ended
	December 31, 2021	December 31, 2022
			Change (%)
Trading services revenue	38,837	39,972	2.9
Transaction fees	31,543	32,489	3.0
Cash equities	23,320	23,685	1.6
Financial derivatives	7,104	7,802	9.8
TOPIX Futures transactions	1,360	1,516	11.4
Nikkei 225 Futures transactions*	2,804	3,259	16.2
Nikkei 225 Options transactions**	1,689	1,752	3.7
10-year JGB Futures transactions	1,117	1,109	(0.7)
Others	131	163	24.3
Commodity derivatives	1,117	1,002	(10.4)
Basic fees	749	740	(1.2)
Access fees	3,746	3,901	4.1
Trading system facilities usage fees	2,723	2,762	1.5
Others	75	77	3.2

*Figures include Nikkei 225 mini Futures transactions. **Figures exclude Nikkei 225 Weekly Options transactions.

2) Clearing services revenue

Clearing services revenue is comprised of clearing fees related to the assumption of obligations of financial instrument transactions carried out by Japan Securities Clearing Corporation and other similar fees.

During the consolidated cumulative third quarter, clearing services revenue increased 0.8% year on year to ¥21,256 million.

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