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Explanation on Operating Results

During the consolidated cumulative first quarter (from April 1, 2022 to June 30, 2022), JPX Group recorded operating revenue of ¥33,576 million (increased 3.3% from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥16,397 million (increased 13.1% year on year). As a result, JPX Group recorded operating income of ¥17,777 million (decreased 3.7% year on year) and income before income tax of ¥17,790 million (decreased 3.7% year on year).
In addition, net income attributable to owners of the parent company after tax was ¥12,089 million (decreased 1.6%
year on year).

Explanation on Financial Position

For assets and liabilities of JPX Group, “clearing business financial assets and liabilities” assumed by Japan Securities Clearing Corporation as a clearing organization and “deposits from clearing participants” deposited by clearing participants as collateral are included under both assets and liabilities. “Clearing business financial assets and liabilities” and “deposits from clearing participants” have a large impact on the amount of assets and liabilities of JPX Group due to their sizable amounts and daily fluctuations subject to changes in clearing participants’ positions. In addition, “legal guarantee funds”, “trading participant security money”, and “default compensation reserve funds” based on the rules for securing safety of financial instruments transactions and other transactions are included under both assets and either liabilities or equity.

Explanation on Forecast Information such as Consolidated Earnings Forecast, etc

There are no revisions to the consolidated earnings forecast from the forecast figures announced in the “Consolidated financial results for the fiscal year ended March 31, 2022 (Based on IFRS), unaudited” on April 26, 2022 (hereinafter “previously disclosed material”).

There are no revisions to the dividend forecast from the forecast figures announced in previously disclosed material. JPX adopts a dividend policy with a target payout ratio of approximately 60% tied to business performance while giving due consideration to the importance of internal reserves for the following purposes:
－ Maintaining sound financial health as a financial instruments exchange group,
－ Preparing for risks as a clearing organization, and
－ Enabling JPX Group to pursue investment opportunities to raise the competitiveness of its markets as they arise.