SBI : INTERIM RESULTS ANNOUNCEMENT FOR THE NINE MONTHS ENDED DECEMBER 31, 2021

SBI HOLDINGS, INC.

(Incorporated in Japan with limited liability)

INTERIM RESULTS ANNOUNCEMENT

FOR THE NINE MONTHS ENDED DECEMBER 31, 2021

The board of directors (the "Directors") of SBI HOLDINGS, INC. (the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (collectively the "Group") for the nine months ended December 31, 2021.

(Amounts are rounded to the nearest million Japanese yen)

1. Consolidated Financial Results

1. Consolidated Operating Results

(Percentages represent year-on-year changes)

				Profit before income				Profit attributable to
	Revenue	Profit for the period	owners of the
	tax expense
							Company
	Millions of		%	Millions of	%	Millions of	%	Millions of		%
	yen		yen		yen	yen
Nine months ended	527,440		45.6	373,449	298.4	345,884	399.6	369,845		508.2
December 31, 2021
Nine months ended	362,218		27.0	93,738	44.8	69,225	52.2	60,810		62.3
December 31, 2020
	Total comprehensive	Basic earnings per share	Diluted earnings per share
	attributable to owners of	attributable to owners of
	income
		the Company			the Company
	Millions of		%			Yen			Yen
	yen
Nine months ended	350,993		333.0		1,511.18			1,296.47
December 31, 2021
Nine months ended	81,054		120.6			256.48			225.15
December 31, 2020

(2) Consolidated Financial Position

				Ratio of equity
			Equity attributable	attributable to
	Total assets	Total equity	to owners of	owners of
			the Company	the Company to
				total assets
	Millions of yen	Millions of yen	Millions of yen	%
December 31, 2021	17,559,212	1,571,388	904,611	5.2
March 31, 2021	7,208,572	717,095	562,116	7.8

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2. Dividends

		Dividend per share
(Declared date)	End of 1st Q	End of 2nd Q	End of 3rd Q	Year-end	Full year
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2021	-	20.00	-	100.00	120.00
Fiscal year ending March 31, 2022	-	30.00	-
Fiscal Year ending March 31, 2022				-	-
(forecast) (Note)

(Note) Fiscal year ending March 31, 2022 forecast is to be determined.

3. Total number of shares outstanding (Common stock)

(1)	Number of shares outstanding (including	:	December 31, 2021	:	244,966,290shares
	treasury stock)		March 31, 2021	:	244,639,390shares
(2)	Number of treasury stock	:	December 31, 2021	:	21,474shares
			March 31, 2021	:	15,084shares
(3)	Average number of shares outstanding	:	Nine months ended December 31, 2021 :	244,739,161shares
			Nine months ended December 31, 2020 :	237,091,400shares

The Group prepared the consolidated financial statements in accordance with IFRSs.

This financial summary is exempt from quarterly review procedures required by Financial Instruments and Exchange Act.

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1. BUSINESS RESULTS

1. Results of Operations
   The Group's consolidated results of operations for the nine months ended December 31, 2021 were as follows. Revenue increased 45.6% year-on-year to ¥527,440 million, profit before income tax expense increased 298.4% to ¥373,449 million and profit attributable to owners of the Company increased 508.2% to ¥369,845 million.
   The results of operations for each reporting segment of the Group for the nine months ended December 31, 2021 were as follows.
   SBI Estate Finance Co.,Ltd. and SBI Guarantee Co.,Ltd., which were included in the Asset Management Business until the previous reporting period, are now included in the Financial Services Business beginning with the six months ended September 30, 2021. Consequently, segment information for the nine months ended December 31, 2020, is restated in accordance with the new basis of segmentation.
   Also, Shinsei Bank, Limited is included in the Financial Services Business beginning with the nine months ended December 31, 2021.

		Revenue			Profit before income tax expense
	Nine months					Nine months
	ended					ended
	December 31,		Nine months ended		December 31,		Nine months ended
	2020		December 31, 2021	2020		December 31, 2021
	Millions of		Millions of	%		Millions of		Millions of	%
	Yen		Yen		Yen		Yen
Financial Services Business	225,127	255,637	13.6	62,379	266,845	327.8
Asset Management Business	128,802	243,097	88.7	43,261	127,322	194.3
Biotechnology, Healthcare &	4,091	6,708	64.0	(4,795)	(3,819)	-
Medical Informatics Business
Total	358,020	505,442	41.2	100,845	390,348	287.1
Others	9,853	24,677	150.5	899	(7,660)	-
Elimination or Corporate	(5,655)		(2,679)	-		(8,006)		(9,239)	-
Consolidated Total	362,218	527,440	45.6	93,738	373,449	298.4

(% represents year-on-year changes)

(Financial Services Business)

The Financial Services Business consists of a wide range of finance-related business, including securities brokerage business, banking services business, and life, property and casualty insurance business.

The results of operations of the Financial Services Business for the nine months ended December 31, 2021 were as follows. Revenue increased 13.6% year-on-year to ¥255,637 million, and profit before income tax expense increased 327.8% to ¥266,845 million.

(Asset Management Business)

The Asset Management Business primarily consists of fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies in Japan and overseas, financial services business overseas, and asset management services business which provides financial products information.

The results of operations of the Asset Management Business for the nine months ended December 31, 2021 were as follows. Revenue increased 88.7% year-on-year to ¥243,097 million, and profit before income tax expense increased 194.3% year-on-year to ¥127,322 million.

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(Biotechnology, Healthcare & Medical Informatics Business)

The Biotechnology, Healthcare & Medical Informatics Business represents development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid (ALA*), a kind of amino acid which exists in vivo, research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology, the digitization of medical and health information, providing solutions and services that promote and the use of medical big data, and medical finance.

The results of operations of the Biotechnology, Healthcare & Medical Informatics Business for the nine months ended December 31, 2021 were as follows. Revenue increased 64.0% year-on-year to ¥6,708 million, and loss before income tax expense amounted to ¥3,819 million for the nine months ended December 31, 2021 (¥4,795 million of loss before income tax expense for the nine months ended December 31, 2020).

1. • 5-aminolevulinicacid (ALA) is an amino acid generated by mitochondria in the human body and an important substance used to produce heme or cytochrome, proteins to generate energy. The production of ALA in the human body decreases with age. ALA is included in food products, including slops of distilled spirits, red wine, and Asian ginseng. ALA is also known as a chloroplastic substance in plants.
2. Financial Conditions and Cash Flows
   As at December 31, 2021, total assets amounted to ¥17,559,212 million and increased by ¥10,350,640 million from total assets of ¥7,208,572 million as at March 31, 2021. The Group's equity increased by ¥854,293 million to ¥1,571,388 million from the fiscal year ended March 31, 2021. As at December 31, 2021, the Group's cash and cash equivalents amounted to ¥2,515,786 million and increased by ¥1,713,084 million from that of ¥802,702 million as at March 31, 2021. The changes of cash flows for each activity and the reasons for changes are as follows:
   (Operating Cash Flows)
   Cash flows from operating activities amounted to ¥18,743 million in net cash outflows (¥132,546 million in net cash outflows for the nine months ended December 31, 2020). The net cash outflows were primarily due to a ¥270,212 million cash outflow from a gain on bargain purchase and a ¥227,270 million cash outflow from an increase in trade and other accounts receivables, despite a ¥373,449 million cash inflow from a profit before income tax expense and a ¥157,042 million cash inflow from an increase in trade and other accounts payable.
   (Investing Cash Flows)
   Cash flows from investing activities amounted to ¥1,674,850 million in net cash inflows (¥81,843 million in net cash outflows for the nine months ended December 31, 2020). The net cash inflows were primarily due to a ¥1,733,799 million cash inflow from an acquisition of subsidiaries, net of cash and cash equivalents acquired, despite a ¥64,315 million cash outflow from purchases of investment securities.
   (Financing Cash Flows)
   Cash flows from financing activities amounted to ¥58,122 million in net cash inflows (¥2,487 million in net cash outflows for the nine months ended December 31, 2020). The net cash inflows were primarily due to a ¥322,563 million cash inflow from proceeds from issuance of bonds payable, despite a ¥236,612 million cash outflow from an decrease in short term loans payable.

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2. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

1. Interim Condensed Consolidated Statement of Financial Position

	As at March 31,			As at December 31,
	2021	2021
	Millions of Yen			Millions of Yen
Assets
Cash and cash equivalents	802,702	2,515,786
Trade and other accounts receivable	1,183,896	8,083,344
Assets related to securities business
Cash segregated as deposits	2,292,743	2,221,534
Margin transaction assets	972,573	1,054,911
Other assets related to securities business	631,305	542,395
Total assets related to securities business	3,896,621	3,818,840
Other financial assets	58,715	423,314
Operational investment securities	528,154	550,677
Other investment securities	209,545	1,304,660
Investments accounted for using the equity method	103,807	128,493
Property and equipment	64,290	143,360
Intangible assets	225,607	287,230
Other assets	123,071	280,807
Deferred tax assets	12,164	22,701
Total assets	7,208,572	17,559,212
Liabilities
Bonds and loans payable	1,394,137	3,265,977
Trade and other accounts payable	189,729	648,493
Liabilities related to securities business
Margin transaction liabilities	269,152	230,033
Loans payable secured by securities	602,921	523,012
Deposits from customers	1,277,808	1,303,202
Guarantee deposits received	961,651	982,611
Other liabilities related to securities business	410,270		286,617
Total liabilities related to securities business	3,521,802	3,325,475
Customer deposits for banking business	1,042,132	7,567,491
Insurance contract liabilities	150,123	153,915
Income tax payable	20,125	16,110
Other financial liabilities	30,333	720,189
Other liabilities	107,301	250,290
Deferred tax liabilities	35,795		39,884
Total liabilities	6,491,477	15,987,824
Equity
Capital stock	98,711	99,003
Capital surplus	147,753	147,074
Treasury stock	(40)	(60)
Other components of equity	18,197	23,906
Retained earnings	297,495		634,688
Equity attributable to owners of the Company	562,116	904,611
Non-controlling interests	154,979		666,777
Total equity	717,095		1,571,388
Total liabilities and equity	7,208,572	17,559,212

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