Tokai Tokyo Financial : Acquires 7.5% Shares of One Tap BUY

Press Release

6-2, NIHONBASHI 3-CHOME, CHUO-KU, TOKYO 103-0027

JAPAN

Note: This English translation is for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. We assume no responsibility for this translation or for direct, indirect or any other form of damage arising from the translation.

(TSE, NSE: 8616)

October 24, 2018

Tokai Tokyo Financial Holdings Acquires 7.5% Shares of One Tap BUY

We, Tokai Tokyo Financial Holdings, Inc., are pleased to announce that we have acquired a 7.5% equity stake with voting rights for 1 billion yen in One Tap BUY Co., Ltd. (hereafter referred to as "One Tap BUY") which is headquartered in Minato-ku, Tokyo. The company, One Tap BUY, is led by Mr. Kazuto Hayashi, who is its Representative Director and President & CEO. The company operates in FinTech field providing a stock trading smartphone application under the product name that is the same as its company name, One Tap BUY.

1. The purpose of this investment

To achieve the medium-to-long-term growth of Tokai Tokyo Financial Group, we find it an important operational requirement to offer advanced services to our customers using innovative financial technologies that predominantly emerge from FinTech area while at the same time increasing contact point with young and next-generation customers besides the one with existing customers. With this shareholding relation established, we will develop cooperative business alliance with One Tap BUY to expand our interaction with the young customers of One Tap BUY, which, as we believe, helps the improvement of One Tap BUY's corporate value.

Furthermore, it is a part of our Great Platform strategy to make ourselves ready to offer various FinTech services including those provided by One Tap BUY and other services to the regional banks who are our strategic partners as well as to the securities brokerage firms who procure the platform services from us.

2. The Profile of One Tap BUY

One Tap BUY is a smartphone specialized securities company that enables everyone to start buying and selling stocks easily and it introduced a catchphrase, "You can become a shareholder just with 1,000 Yen fund." Its customers can trade stocks with three taps on their smartphones specifying transaction amount even as small as 1,000 yen. One Tap BUY is offering services to realize a society in which everyone invests in stocks as easily and normally as they go to banks to deposit money, and it raises its corporate slogan, "Let's make stock investment easy for everyone".

Registered as a Type 1 Financial Instruments Business Operator in December 2015, One Tap BUY began offering a stock trading smartphone application that bears the name, One Tap BUY starting June 1, 2016. One Tap BUY has been approaching new investors who have never invested before, and the number of its client accounts now exceeds 130,000.

One Tap BUY Screenshots

Cumulative Stock

US Stocks

Japanese Stocks

CFD 10x

Investment

(Corporate Profile of One Tap BUY as of September 30, 2018)

Company name	One Tap BUY Co., Ltd. Financial Instruments Business Operator Registration: Director-General of the Kanto Local Finance Bureau (Financial Instruments) No. 2883
Headquarters	Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo, Japan
Representative	Kazuto Hayashi, President & CEO, Representative Director
Establishment	October 31, 2013
Paid-in capital	3,499 million yen (4,474 million yen after this transaction)
Type of business	Securities Business
Major Shareholders	SoftBank Corp. MIC Innovation III Limited Liability Fund MIC Innovation IV Limited Liability Fund Mizuho Securities Co., Ltd. Kazuto Hayashi DBJ Capital Investment Fund OPT Ventures Japan Fund 1 Yahoo Japan Corporation NANTO CVC Limited Liability Investment Partnership Mizuho Growth Fund Limited Partnership Sansei No. 6 Investment Limited Partnership

3. The predicted impact of the transaction

We estimate that the impact on our financial standing for the fiscal year ending in March 31, 2019 would be insignificant.

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