MATSUI SECURITIES : Financial summary for the FY2016 is updated

Non-Consolidated Financial Summary under Japanese GAAP For the Year Ended March 31, 2017

Filing Date: April 27, 2017

Company name (Securities code): Matsui Securities Co., Ltd. (8628) Stock exchange listing: Tokyo

（URLhttp://www.matsui.co.jp/ir/en/index.html）

Representative: Michio Matsui: President and Chief Executive Officer Planned date of ordinary general meeting of shareholders: June 25, 2017 Planned date of dividends payment: June 26, 2017

Planed date of filing of the annual securities report: June 19, 2017

Note: All figures in the financial statements are rounded off to the nearest millionth.

1．Non-consolidated financial summary for the year ended March 31, 2017

1. Operating results

   	Operating revenue	Net operating revenue	Operating income	Ordinary income
   Year ended March 31, 2017 Year ended March 31, 2016	Millions Yr/Yr ( ) ( ) of Yen % change 27,727 (19.5) 34,435 0.4	Millions Yr/Yr ( ) ( ) of Yen % change 26,499 (19.7) 33,003 0.3	Millions Yr/Yr ( ) ( ) of Yen % change 14,939 (31.3) 21,745 (1.5)	Millions Yr/Yr ( ) ( ) of Yen % change 15,044 (31.1) 21,833 (1.7)

   	Profit	Basic earnings per share	Diluted earnings per share	Return on equity	Ordinary income/ Total assets	Operating income/ Operating revenues
   Year ended March 31, 2017	Millions Yr/Yr ( ) ( ) of Yen % change 10,697 (27.5) 14,763 (5.2)	(Yen)	(Yen)	(%)	(%)	(%)
   		41.67	41.65	11.4	2.1	53.9
   Year ended March 31, 2016		57.50	57.49	16.2	2.9	63.1

   Equity in earnings (losses) of affiliates if equity method is applied:

   Year ended March 31, 2017 None Year ended March 31, 2016 None

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of March 31, 2017	(Millions of Yen)	(Millions of Yen)	(%)	(Yen)
   	770,716	94,820	12.3	369.02
   As of March 31, 2016	663,425	92,718	14.0	361.01

2. Financial position

   Owner's equity: As of March 31, 2017 94,739 million yen As of March 31, 2016 92,681 million yen

3. Cash flows

	Net cash provided by (used in) operating activities	Net cash provided by (used in) investing activities	Net cash provided by (used in) financing activities	Cash and cash equivalents
Year ended March 31, 2017	(Millions of Yen)	(Millions of Yen)	(Millions of Yen)	(Millions of Yen)
	11,510	(2,014)	(10,269)	29,093
Year ended March 31, 2016	43,431	(824)	(48,147)	29,865

2．Dividends

	Dividend per share					Annual total	Payout ratio	Dividends per net assets
First quarter	Second quarter	Third quarter	Year end	Annual
Year ended March 31, 2016	(Yen)	(Yen)	(Yen)	(Yen)	(Yen)	(Millions of Yen) 11,553 8,472	(%)	(%)
	－	25.00	－	20.00	45.00		78.3	12.6
Year ended March 31, 2017	－	13.00	－	20.00	33.00		79.2	9.0
Year ends March 31, 2018 (estimation)	－	－	－	－	－		－

3．Forecast of business results

The business results of securities brokerage companies depend on the market situation considerably, which makes it difficult to forecast the future business results. Accordingly, the Company does not issue such forecast while it discloses its monthly business information instead of such forecasts.

4．Notes

1. Changes in accounting policies and accounting estimates retrospective restatement

2. Changes in accounting policies based on revisions of accounting standard: None

3. Changes in accounting policies other than ones based on revisions of accounting standard: None

4. Changes in accounting estimates: None

5. Retrospective restatement: None

6. Number of issued and outstanding shares (common stock)

7. Number of issued and outstanding shares (including treasury stock) As of March 31, 2017 259,264,702 shares

   As of March 31, 2016 259,264,702 shares

8. Number of treasury stock

   As of March 31, 2017 2,533,366 shares

   As of March 31, 2016 2,533,314 shares

9. Average number of shares

   For the year ended March 31, 2017 256,731,362 shares

   For the year ended March 31, 2016 256,731,423 shares

   Note: Financial summary is not subject to audit. Notice to readers:

   The accompanying financial statements of the Company are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards.

   Financial Statements‌

10. Balance Sheet

    (Millions of Yen)

    Assets

    Current assets

    March 31, 2016 March 31, 2017

    Cash and deposits	26,569	25,743
    Cash segregated as deposits	375,812	467,212
    Money held in trust	4,596	5,950
    Trading products:	1,817	1,408
    Trading securities and other	0	0
    Derivatives	1,817	1,408
    Trade date accrual	17	15
    Margin transaction assets:	232,043	245,202
    Loans on margin transactions	228,152	237,047

    Cash collateral pledged for securities

    borrowing on margin transactions 3,8908,154

    Loans secured by securities: 7,869 9,536 Cash collateral pledged for securities

    borrowed 7,869 9,536

    Advances paid: 23 26

    Advance payments for customers

    on trades 2326

    Advance payments for others	0	0
    Cash paid for offering	―	28
    Short-term guarantee deposits	2,166	1,648
    Advances payments	1	2
    Prepaid expenses	189	213
    Accounts receivable - other	1	10
    Accrued income	3,807	4,174
    Deferred tax assets	314	203
    Other	―	256
    Allowance for doubtful accounts	(7)	(116)
    Total current assets	655,217	761,510
    Non-current assets Property, plant and equipment:	953	958
    Buildings	197	177
    Equipment	321	347
    Land	434	434
    Intangible assets:	2,999	4,118
    Software	2,999	4,118
    Other	0	0
    Investments and other assets:	4,256	4,129
    Investment securities	3,119	2,893
    Investments in capital	8	8
    Long-term loans receivable	507	499
    Long-term guarantee deposits	261	314
    Long-term prepaid expenses	7	17
    Deferred tax assets	587	675
    Long-term receivables	1,021	1,179
    Other	95	93
    Allowance for doubtful accounts	(1,348)	(1,549)
    Total non-current assets	8,208	9,205
    Total assets	663,425	770,716

    Liabilities

    Current liabilities

    Trading products:	458	281
    Derivatives	458	281
    Margin transaction liabilities:	35,793	51,228
    Borrowings on margin transactions	5,452	5,932

    Cash received for securities lending

    on margin transactions 30,34145,297

    Loans payable secured by securities: 14,838 13,262 Cash received on debt credit

    transaction of securities 14,83813,262

    Deposits received:	200,271	272,048
    Deposits from customers	197,048	266,444
    Deposits for others	3,222	5,604
    Guarantee deposits received	182,641	205,409
    Accounts for non-received securities and others	44	―
    Short-term loans payable	128,050	126,100
    Advances received	0	―
    Unearned revenue	35	33
    Accounts payable - other	379	672
    Accrued expenses	844	903
    Income taxes payable	3,551	2,417
    Provision for bonuses	248	174
    Total current liabilities	567,151	672,527

    Non-current liabilities

    Long-term loans payable ― 150

    Reserve for retirement bonuses for

    directors and auditors Other	3	3
    Total non-current liabilities	208	358

    204 204

    Reserves under special laws Reserve for financial products

    transaction liabilities 3,349 3,012

    Total reserves under special laws	3,349	3,012
    Total liabilities	570,707	675,896

    Net assets

    Shareholders' equity Capital stock	11,945	11,945
    Capital surplus
    Legal capital surplus	9,793	9,793
    Total capital surpluses	9,793	9,793
    Retained earnings
    Legal retained earnings Other retained earnings	159	159
    General reserve	4,250	―
    Retained earnings brought forward	66,384	72,859
    Total retained earnings	70,793	73,018
    Treasury shares	(1,915)	(1,915)
    Total shareholders' equity	90,616	92,840
    Valuation and translation adjustments

    Valuation difference on

    available-for-sale securities 2,066 1,898

    Total valuation and translation

    adjustments 2,066 1,898

    Subscription rights to shares	37	81
    Total net assets	92,718	94,820
    Total liabilities and net assets	663,425	770,716

11. Statement of Income

    Operating revenue

    Year ended March 31, 2016

    (Millions of Yen) Year ended March 31,

    2017

    Commission received 21,742 17,253

    Commission to consignees 20,414 16,260 Commission for underwriting, secondary distribution and

    solicitation for selling and others for professional

    investors

    Fee for offering, secondary distribution and solicitation for

    50 13

    selling and others for professional investors 01

    Other fees received	1,278	979
    Net trading income	6	3
    Financial revenue	12,682	10,467
    Other operating revenue	5	4
    Total operating revenue	34,435	27,727
    Financial expenses	1,431	1,228
    Net operating revenue	33,003	26,499
    Selling, general and administrative expenses Trading related expenses	4,674	4,345
    Personnel expenses	2,178	2,227
    Real estate expenses	890	891
    Office cost	1,713	1,841
    Depreciation	1,175	1,267
    Taxes and dues	288	362
    Provision of allowance for doubtful accounts	216	311
    Other	123	317
    Total selling, general and administrative expenses	11,258	11,560
    Operating income	21,745	14,939
    Non-operating income Dividend income	76	91
    Other	14	18
    Total non-operating income	90	109
    Non-operating expenses Other	2	4
    Total non-operating expenses	2	4
    Ordinary income	21,833	15,044
    Extraordinary income Gain on sales of investment securities	1,012	―

    Reversal of reserve for financial products transaction

    Gain on sales of non-current assets	―	1
    Total extraordinary income	1,012	338

    liabilities ―337

    Extraordinary losses

    Provision of reserve for financial products transaction

    liabilities Loss on sales and retirement of non-current assets	6	15
    Total extraordinary losses	695	15
    Profit before income taxes	22,151	15,367
    Income taxes - current	7,455	4,573
    Income taxes - deferred	(67)	97
    Total income taxes	7,388	4,670
    Profit	14,763	10,697

    689 ―

12. Statement of changes in equity

    Year ended March 31, 2016

    (Millions of Yen)

    Shareholders' equity
    Capital stock	Capital surplus		Retained earnings
    	Legal capital surplus	Total capital surplus	Legal retained earnings	Other Retained earnings		Total retained earnings
    				General reserve	Retained earnings brought forward
    Balance at the beginning of current period	11,945	9,793	9,793	159	4,250	70,734	75,143
    Changes of items during period
    Dividends of surplus	(11,553)	(11,553)
    Profit	14,763	14,763
    Purchase of treasury shares
    Retirement of treasury shares	(7,560)	(7,560)
    Net changes of items other than shareholders' equity
    Total changes of items during period	―	―	―	―	―	(4,350)	(4,350)
    Balance at the end of current period	11,945	9,793	9,793	159	4,250	66,384	70,793

    Shareholders' equity		Valuation and translation adjustments		Subscription rights to shares	Total net assets
    Treasury shares	Total shareholders' equity	Valuation difference on available-for-sale securities	Total valuation and translation adjustments
    Balance at the beginning of current period	(9,475)	87,406	2,613	2,613	10	90,029
    Changes of items during period
    Dividends of surplus	(11,553)	(11,553)
    Profit	14,763	14,763
    Purchase of treasury shares	(0)	(0)	(0)
    Retirement of treasury shares	7,560	―	―
    Net changes of items other than shareholders' equity	(547)	(547)	27	(520)
    Total changes of items during period	7,560	3,210	(547)	(547)	27	2,690
    Balance at the end of current period	(1,915)	90,616	2,066	2,066	37	92,718

    Year ended March 31, 2017

    (Millions of Yen)

    Shareholders' equity
    Capital stock	Capital surplus		Retained earnings
    	Legal capital surplus	Total capital surplus	Legal retained earnings	Other Retained earnings		Total retained earnings
    				General reserve	Retained earnings brought forward
    Balance at the beginning of current period	11,945	9,793	9,793	159	4,250	66,384	70,793
    Changes of items during period
    Dividends of surplus	(8,472)	(8,472)
    Profit	10,697	10,697
    Reversal of general reserve	(4,250)	4,250	―
    Purchase of treasury shares
    Net changes of items other than shareholders' equity
    Total changes of items during period	―	―	―	―	(4,250)	6,475	2,225
    Balance at the end of current period	11,945	9,793	9,793	159	―	72,859	73,018

    Shareholders' equity		Valuation and translation adjustments		Subscription rights to shares	Total net assets
    Treasury shares	Total shareholders' equity	Valuation difference on available-for-sale securities	Total valuation and translation adjustments
    Balance at the beginning of current period	(1,915)	90,616	2,066	2,066	37	92,718
    Changes of items during period
    Dividends of surplus	(8,472)	(8,472)
    Profit	10,697	10,697
    Reversal of general reserve	―	―
    Purchase of treasury shares	(0)	(0)	(0)
    Net changes of items other than shareholders' equity	(167)	(167)	44	(123)
    Total changes of items during period	(0)	2,225	(167)	(167)	44	2,101
    Balance at the end of current period	(1,915)	92,840	1,898	1,898	81	94,820

13. Statements of Cash Flows

    (Millions of Yen)

    Cash flows from operating activities

    Year ended march 31, 2016

    Year ended march 31, 2017

    Profit (loss) before income taxes 22,151 15,367

    Depreciation 1,175 1,267

    Increase (decrease) in allowance for doubtful accounts 179 310

    Increase (decrease) in provision for bonuses (29) (74) Increase (decrease) in reserve for financial products transaction

    liabilities Interest and dividend income	(12,269)	(10,164)
    Interest expenses	997	883
    Loss (gain) on sales and retirement of non-current assets	6	13
    Loss (gain) on sales of investment securities	(1,012)	―
    Decrease (increase) in cash segregated as deposits	87,100	(91,400)
    Net change in cash in trust	(100)	(1,300)
    Decrease (increase) in trading products - assets (liabilities)	(1,200)	231
    Decrease (increase) in trade date accrual	167	2
    Decrease/increase in assets/liabilities for margin transaction	31,560	2,277
    Decrease (increase) in loans secured by securities	4,211	(1,667)
    Decrease/increase in advance paid/deposits received	(61,241)	71,774
    Increase (decrease) in borrowings secured by securities	(10,721)	(1,576)
    Increase (decrease) in guarantee deposits received	(24,457)	22,768
    Decrease (increase) in short-term guarantee deposits	3,570	518
    Other, net	247	(625)
    Subtotal	41,022	8,268
    Interest and dividend income received	12,846	9,832
    Interest expenses paid	(1,030)	(874)
    Income taxes paid	(9,407)	(5,716)
    Net cash provided by (used in) operating activities	43,431	11,510

    689 (337)

    Cash flows from investing activities

    Purchase of property, plant and equipment	(169)	(118)
    Proceeds from sales of property, plant and equipment	―	1
    Purchase of intangible assets	(1,635)	(1,827)
    Purchase of investment securities	(40)	(20)
    Proceeds from sales of investment securities	1,016	―
    Other, net	4	(50)
    Net cash provided by (used in) investing activities	(824)	(2,014)
    Cash flows from financing activities Net increase (decrease) in short-term loans payable	(36,500)	(2,000)
    Proceeds from long-term loans payable	―	300
    Repayments of long-term loans payable	(100)	(100)
    Purchase of treasury shares	(0)	(0)
    Cash dividends paid	(11,547)	(8,469)
    Net cash provided by (used in) financing activities	(48,147)	(10,269)
    Effect of exchange rate change on cash and cash equivalents	(0)	0
    Net increase (decrease) in cash and cash equivalents	(5,540)	(772)
    Cash and cash equivalents at beginning of period	35,406	29,865
    Cash and cash equivalents at end of period	29,865	29,093

14. Notes on Financial Statements

15. (Notes - Uncertainties of entity's ability to continue as going concern) No relevant items.

    (Segment Information)

    Disclosures on segment information have been omitted, as the business of the Company consists of only a single segment of online brokerage service.

    (Equity in Net Income of Affiliates) No relevant items.

    (Per Share Information)

    Year ended March 31, 2017

    Net assets per share 369.02 Yen

    Basic earnings per share 41.67 Yen

    Diluted earnings per share 41.65 Yen

    Items	Year ended March 31,2017
    Basic earnings per share
    Net income (Millions of Yen)	10,697
    Net income not attributed to common stock (Millions of Yen)	ー
    Net income attributed to common stock (Millions of Yen)	10,697
    Average number of shares of common stock outstanding (Shares)	256,731,362
    Diluted earnings per share
    Increase of common stock (Shares)	115,714
    (Of the above subscription right to shares (Shares))	(115,714)
    Residual securities which are not considered in the calculation of diluted earnings per share	ー

    Note: Calculation basis of net income per share information Net income and diluted earnings per share

    (Significant events after reporting period) No relevant items.