MATSUI SECURITIES : Financial summary for the 2Q FY2017 is updated

Non-Consolidated Financial Summary under Japanese GAAP For the Six Months Ended September 30, 2017

Filing Date: October 26, 2017

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

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

Representative: Michio Matsui: President and Chief Executive Officer Quarterly statement filing date (as planned): November 13, 2017 Dividend payable date (as planned): November 24, 2017

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

1．Non-Consolidated financial summary for the Six months ended September 30, 2017

1. Operating results

   	Operating revenue	Net operating revenue	Operating income	Ordinary income
   Six months ended September 30, 2017 Six months ended September 30, 2016	Millions Yr/Yr ( ) ( ) of Yen % change 14,586 6.1 13,747 (25.9)	Millions Yr/Yr ( ) ( ) of Yen % change 13,852 4.6 13,241 (25.4)	Millions Yr/Yr ( ) ( ) of Yen % change 7,996 9.2 7,320 (39.8)	Millions Yr/Yr ( ) ( ) of Yen % change 8,051 9.1 7,380 (39.5)

   Profit	Basic earnings per share	Diluted earnings per share
   Six months ended September 30, 2017 Six months ended September 30, 2016	Millions Yr/Yr ( ) ( ) of Yen % change 5,570 9.1 5,105 (40.8)	(Yen) 21.70 19.89	(Yen) 21.68 19.88

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of September 30, 2017	(Millions of Yen)	(Millions of Yen)	(%)	(Yen)
   	812,011	95,771	11.8	372.62
   As of March 31, 2017	770,716	94,820	12.3	369.02

2. Financial position

Owner's equity: As of September 30, 2017 95,663 million yen As of March 31, 2017 94,739 million yen

2．Dividends

	Dividend per share
First quarter	Second quarter	Third quarter	Year end	Annual
Year ended March 31, 2017	(Yen) －	(Yen) 13.00	(Yen) －	(Yen) 20.00	(Yen) 33.00
Year ends March 31, 2018	－	17.00
Year ends March 31, 2018 (estimation)	－	－	－

3．Notes

1. Applying of specific accounting of the non-consolidated quarterly financial statements: None

2. Changes in accounting policies and accounting estimates retrospective restatement

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

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

5. Changes in accounting estimates: None

6. Retrospective restatement: None

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

8. Number of issued and outstanding shares (including treasury stock) As of September 30, 2017 259,264,702 shares

   As of March 31, 2017 259,264,702 shares

9. Number of treasury stock

   As of September 30, 2017 2,533,433 shares

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

10. Average number of shares

    For the Six months ended September 30, 2017 256,731,291 shares For the Six months ended September 30, 2016 256,731,388 shares

    Note1: This quarterly financial results are not subject to quarterly review procedures.

    Note2: The business results of securities brokerage companies depend on the market situation considerably, which makes it difficult to forecast the future business results. For the same reason, dividend amount is not decided. Accordingly, the Company does not issue such forecast while it discloses its monthly business information instead of such forecasts.

    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.

    Quarterly financial statements and major notes

11. Quarterly balance sheet

    (Millions of Yen)

    March 31, 2017 September 30, 2017

    Assets

    Current Assets

    Cash and deposits 25,743 20,148

    Cash segregated as deposits 467,212 513,512

    Money held in trust 5,950 5,813

    Trading products: 1,408 1,272

    Trading securities and other 0 0

    Derivatives 1,408 1,272

    Trade date accrual 15 16

    Margin transaction assets: 245,202 244,108

    Loans on margin transactions 237,047 231,261 Cash collateral pledged for

    securities borrowing on margin

    transactions

    8,154 12,847

    Loans secured by securities: 9,536 8,805 Cash collateral pledged for

    securities borrowed 9,5368,805

    Advances paid	26	37
    Cash paid for offering	28	187
    Short-term guarantee deposits	1,648	3,417
    Other	4,859	4,920
    Allowance for doubtful accounts	(116)	(120)
    Total current assets	761,510	802,116
    Non-current assets
    Property, plant and equipment	958	905
    Intangible assets:	4,118	4,411
    Software	4,118	4,411
    Other	0	0
    Investments and other assets:	4,129	4,580
    Investment securities	2,893	3,615
    Other	2,785	2,499
    Allowance for doubtful accounts	(1,549)	(1,534)
    Total non-current assets	9,205	9,895
    Total assets	770,716	812,011

    Liabilities

    Current liabilities

    (Millions of Yen)

    March 31, 2017 September 30, 2017

    Trading products:	281	285
    Derivatives	281	285
    Margin transaction liabilities:	51,228	62,796
    Borrowings on margin
    transactions	5,932	12,140
    Cash received for securities lending on margin transactions	45,297	50,656
    Loans payable secured by securities:	13,262	14,373
    Cash received on debt credit transaction of securities	13,262	14,373
    Deposits received	272,048	315,540
    Guarantee deposits received	205,409	223,838
    Short-term loans payable	126,100	92,100
    Income taxes payable	2,417	2,595
    Provision for bonuses	174	96
    Other	1,608	1,297
    Total current liabilities	672,527	712,920

    Non-current liabilities

    Long-term loans payable 150 100

    Reserve for retirement bonuses for

    directors and auditors Other	3	3
    Total non-current liabilities	358	308

    204 204

    Reserves under special laws Reserve for financial products

    Total reserves under special laws	3,012	3,012
    Total liabilities	675,896	716,240

    transaction liabilities 3,012 3,012

    Net assets

    Shareholders' equity Capital stock	11,945	11,945
    Capital surplus	9,793	9,793
    Retained earnings	73,018	73,453
    Treasury shares	(1,915)	(1,915)
    Total shareholders' equity	92,840	93,276

    Valuation and translation adjustments Valuation difference on

    available-for-sale securities 1,898 2,387

    Total valuation and translation

    adjustments 1,898 2,387

    Subscription rights to shares	81	109
    Total net assets	94,820	95,771
    Total liabilities and net assets	770,716	812,011

12. Quarterly statement of income

    (Millions of Yen)

    Operating revenue

    Six months ended September 30, 2016

    Six months ended September 30, 2017

    Commission received 8,435 8,517

    Commission to consignees 7,912 8,149 Commission for underwriting, secondary

    distribution and solicitation for selling and ― 8

    others for professional investors

    Fee for offering, secondary distribution and

    solicitation for selling and others for 0 0

    professional investors

    Other fees received 523 360

    Net trading income 1 432

    Financial revenue 5,309 5,636

    Other operating revenue 3 1

    Total operating revenue 13,747 14,586

    Financial expenses 506 734

    Net operating revenue 13,241 13,852 Selling, general and administrative expenses

    Trading related expenses 2,093 2,176

    Personnel expenses 1,116 1,169

    Real estate expenses 447 432

    Office cost 874 1,046

    Depreciation 634 750

    Taxes and dues 189 194

    Provision of allowance for doubtful accounts 511 24

    Other 56 64

    expenses Operating profit	5,921 7,320	5,856 7,996
    Non-operating income
    Dividend income	55	49
    Other	8	8
    Total non-operating income	62	57
    Non-operating expenses
    Other	3	3
    Total non-operating expenses	3	3
    Ordinary profit	7,380	8,051
    Extraordinary losses
    Loss on sales and retirement of non-current assets 4 0
    Total extraordinary losses	4	0
    Profit before income taxes	7,376	8,050
    Income taxes - current	2,306	2,441
    Income taxes - deferred	(36)	39
    Total Income taxes	2,271	2,481
    Profit	5,105	5,570

    Total selling, general and administrative

13. Notes on quarterly financial statements

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

    (Notes, when there is significant changes in amounts of equity) No relevant items.

    (Notes, Quarterly-Applying of specific accounting of the quarterly financial statements) No relevant items.

    (Notes, Quarterly-Changes in accounting policies and accounting estimates retrospective restatement)

    No relevant items.