CEO Presentation November 2017 FINANCIAL RESULTS (CONSOLIDATED) - - PDF document

SLIDE 1

CEO Presentation

November 2017

SLIDE 2

1 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 （Million Yen） Operating revenue, Ordinary income Operating Revenue Ordinary Income Net Income

• Net Income

(Million Yen)

¥11.16 billion gain of negative goodwill by acquiring Takagi Securities Recorded positive ordinary income non stop for 28 consecutive quarters

1H calculated excluding Takagi Sec. and ETERNAL

8,000 12,000 16,000 20,000 24,000 Nikkei 225 (Yen)

FINANCIAL RESULTS (CONSOLIDATED)

■ Trend of Financial Results (Semi-Annual)

SLIDE 3

2

CONTRIBUTING FACTORS

JV Affiliates Product Foreign Stocks Structured Bonds Market Division

Income Growth

SLIDE 4

3

FOCUS AREAS HIGH WEALTH BUSINESS JOINT VENTURE NEW PROJECTS

SLIDE 5

4

CAPITAL POLICY Shareholder Return Reserved Capital

• Dividend
• Share Buyback
• Benefit Program

Investment in Future Growth Development of “MONEQUE” M&A / Alliance Enhancement of Market Division Expansion in Tokyo IT Enhancement Restructuring Takagi Sec.

SLIDE 6

5

NEW MANAGEMENT PLAN

Market Expansion

Develop new sector in the industry

Retail Segmentation

“New Age’s Flag Bearer 5”

Productivity Revolution

Tokyo M&A

Management and Business Base built through “Ambitious 5”

Environmental Change “New Age’s Flag Bearer 5”

Great Platform

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6

Inquiries to be directed to:

Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co.,

• Ltd. (former Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it over. The Group (Tokai Tokyo

Financial Group) at the same time shifted to a holding company system. Effective the same date, the Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd. changed their corporate names to Tokai Tokyo Financial Holdings, Inc., and Tokai Tokyo Securities Co., Ltd. respectively. The result for the fiscal year ended on March 31, 2009 or any earlier date account for the operation of the former Tokai Tokyo Securities Co., Ltd. under then existing organizational structure.

Corporate Communications Department TEL: +81-3-3517-8618 FAX: +81-3-3517-8314 E-mail: fh_ir@tokaitokyo-fh.jp

 This material is intended to provide information regarding the Company’s most recent operational result and NOT to solicit investment in securities issued by the Company.

SLIDE 8

IR Presentation Financial Summary & Business Strategy

November 2017

SLIDE 9

1

Contents

* Unless otherwise specified, the numerical data we quote here were all compiled as consolidated figures of the Tokai Tokyo Financial Holdings, Inc.

Overview of Tokai Tokyo Financial Holdings Financial Summary and Characteristics of Business and Performance Progress of New Project Capital Policy New Management Plan “New Age’s Flag Bearer 5”

SLIDE 10

Overview of Tokai Tokyo Financial Holdings

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3

 Corporate Profile

Company Name: Tokai Tokyo Financial Holdings, Inc. Consolidated Net Assets: 171.5 billion yen Client Assets under Custody: 4,646.0 billion yen (Retail Client Assets: 2,678.4 billion yen Market Capitalization: 187.1 billion yen Number of Employees: Holding Company 182 Consolidated Basis: 3,424

Group company of the Tokai Bank(b) Group company of the Nikko Securities (a)

Tokai Tokyo Securities

Tokai Tokyo Financial Holdings was established

• Apr. ‘09
• Oct. ‘07

YM

• Nov. ‘08

Hamagin TT May ‘10 Nishi- Nippon City TT

• Oct. ‘12

Senshu Ikeda TT

• Apr. ‘10

Relocated HQ of TTSC to Nagoya City

• Apr. ‘10

TTSC merged with Toyota Financial Services Sec. Tokyo Securities Tokai Maruman Securities

• Jan. ‘17

Hokuhoku TT

 Group History

Current group configuration was formed in October 2000 through merger between Tokyo Securities and Tokai Maruman Securities * Currently, (a) SMBC Nikko Securities, (b) Bank of Tokyo-Mitsubishi UFJ

Overview of Tokai Tokyo Financial Holdings

• Apr. ‘17

Tochigi Bank invested in Utsunomiya Securities

• March. ‘17

Acquired ETERNAL

• Apr. ‘17

Acquired Takagi Sec.

• Sep. ‘17

Acquired Pinnacle

（As of September 30, 2017）

SLIDE 12

Financial Summary and Characteristics of Business and Performance

SLIDE 13

5 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 （Million Yen） Operating revenue, Ordinary income Operating Revenue Ordinary Income Net Income

• Net Income

(Million Yen)

Trend Analysis (Consolidated) Financial Summary ■ Financial Results (Semi-Annual)

¥11.16 billion gain of negative goodwill by acquiring Takagi Securities Recorded positive ordinary income non stop for 28 consecutive quarters

1H calculated excluding Takagi Sec. and ETERNAL

8,000 12,000 16,000 20,000 24,000 Nikkei 225 (Yen)

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Revenue Source Characteristics of Business and Performance ■ Group operating revenue image including the affiliates’ figures on Pro-Rata Basis*

* The charts present an image of the source of Group revenue, in FY2017 1H, which, being different from our consolidated PL, include affiliates’ figures on pro-rata basis.

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70 77 73 74 76 75 74 73 70 70 66 69 66 61 63 59 60 58 58 57 60 55 30 23 27 26 24 25 26 27 30 30 34 31 34 39 37 41 40 42 42 43 40 45

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Non-Retail Retail

Characteristics of Business and Performance ■ Revenue Breakdown by Business Segment

FY2012 FY2017 1H

* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd.

Breakdown by Business Segment

SLIDE 16

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017

Others Investment Trusts Bonds Foreign Stocks Domestic Stocks

(Million Yen)

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 Western Japan Eastern Japan Central Japan (Million Yen)

Revenue Breakdown by Region Revenue Breakdown by Product

* Excluding income not accompanying customers

Characteristics of Business and Performance Retail Segment

8

(Mostly foreign/structured bonds)

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9

200 400 600 800 1,000 1,200 1,400 50 100 150 200 250 300 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2015 FY2016 FY2017 Assets under Custory Number of Membership (Billion Yen)

Number of Membership & Assets under Custody (Orque d’or)

Wealth Management Unit Characteristics of Business and Performance

184 223 240 314 354 365 367 425 479 100 200 300 400 500 600 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2013 FY2014 FY2015 FY2016 FY 2017

Premier Executive Advisors Overlap Wealth Management

（Billion Yen）

Assets under Custody

(Wealth Management Unit & Premier Executive Advisors)

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10

High Wealth 6.5% Wealth 25.9% Middle 56.1%

General 11.4%

High Wealth 16.6%

Wealth 30.6% Middle 44.9%

General 8.0%

Wealth Management Unit Characteristics of Business and Performance

High Wealth 27.5%

Wealth 25.0% Middle 36.7% General 10.9% Share of High Wealth AUC in Retail Segment

High Wealth :Holding over 100 million yen in assets under custody Wealth :30 million to 100 million yen Middle :5 million to 30 million yen General :less than 5 million yen

End of March 2013 End of Sep. 2017

Share of High Wealth Revenue in Retail Segment

FYE March 2013 1H of FYE Mar. 2018

(6 months from Apr.- Sep. 2017)

High Wealth 14.4% Wealth 24.3% Middle 46.5%

General 14.8%

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11

• 2,000

2,000 4,000 6,000 8,000 10,000 12,000 14,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (Million Yen)

• thers

Foreign Bonds and Derivatives Foreign Stocks Bond Trading Equity Trading

Characteristics of Business and Performance Trend of Revenue and its Composition at Market Segment

* Numeric data on this slide were extracted from the internal managerial record of Tokai Tokyo Securities Co., Ltd. * “Others” comprises trading which cannot be classified into products according to management accounting rule.

Increase in Foreign bonds & derivatives, and Foreign stocks

(Mostly origination fee) (Domestic/structured bonds, etc.) (Japanese equity)

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12

200 400 600 800 1,000 1,200 1,400 1H 2H 1H 2H 1H 2H 1H FY2014 FY2015 FY2016 FY2017 Others Investment Trusts Foreign & Structured Bonds Domestic Bonds Foreign Stocks Domestic Stocks

(Billion Yen)

Income Contribution from JV Affiliates Assets under Custody by Product

Joint Ventures Characteristics of Business and Performance

5 36 245 305 371 450 540 538 642 668 780 841 884 963 1,047 1,009 998 1,024 1,244 1,444

200 400 600 800 1,000 1,200 1,400 1,600 Mar‐08 Sep‐08 Mar‐09 Sep‐09 Mar‐10 Sep‐10 Mar‐11 Sep‐11 Mar‐12 Sep‐12 Mar‐13 Sep‐13 Mar‐14 Sep‐14 Mar‐15 Sep‐15 Mar‐16 Sep‐16 Mar‐17 Sep‐17

(Billion Yen)

Assets under Custody - from JVs (6 Entities)

5 10 15 20 25 30 35 40 45 50

• 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 1H

Income and Other Benefits Realized from Transactions with JVs Gain on Investments in Partnership Proportion to Consolidated Ordinary Income (%) （Million Yen）

SLIDE 21

13

Bank Name Bank Deposits (Trillion Yen) JV Name Date of Commencing Operation

1

Concordia Financial Group 14.9 Hamagin Tokai Tokyo Nov-2008

2

★ Mebuki Financial Group

13.5

3

★ Fukuoka Financial Group

13.2

4

★ Chiba Bank

11.6

5

Hokuhoku Financial Group 10.6 Hokuhoku Tokai Tokyo Jan-2017

6

★ Shizuoka Bank

9.2

7

Yamaguchi Financial Group 8.5 YM Securities Oct-2007

8

★ North Pacific Bank

8.1

9

Nishi-Nippon City Bank 7.6 Nishi-Nippon City Tokai Tokyo May-2010

10

★ The 77 Bank

7.4

11

★ Hiroshima Bank

7.0

12

★ Kyoto Bank

6.6

13

★ Gunma Bank

6.5

14

★ The Hachijuni Bank

6.4

15

★ Chugoku Bank

6.2

16

The Juroku Bank 5.3

17

★ The Toho Bank

5.2

18

★ Iyo Bank

5.0

19

Senshu Ikeda Holdings 4.8 Senshu Ikeda Tokai Tokyo Sep-2013

20

Ogaki Kyoritsu Bank 4.8

• Tochigi Bank

2.6 Utsunomiya Apr-2017

Top 20 Regional Banks (total deposits)

（As of March 31, 2017)

Total Bank Deposits 49 Trillion Yen

★ : Banks that have subsidiary securities companies ※ Denotes Tokai Tokyo Financial Holdings’ alliance partners

Joint Ventures Characteristics of Business and Performance

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14

20 40 60 80 100 120 140 160 180 200

1H 2H 1H 2H 1H 2H 1H 2H 1H FY2013 FY2014 FY2015 FY2016 FY 2017

Takagi TTSC Broker's Broker Business JV

(Billion Yen)

5,506 10,310 16,079 30,755 54,489 63,299 62,104 56,759 59,712 80,805 85,662 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 （Million Yen）

Assets under Custody (Foreign Stocks )

Broker’s Broker Business

Assets under Custody Number of Accounts

Characteristics of Business and Performance

SLIDE 23

15

5,000 10,000 15,000 20,000 25,000 30,000 35,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Personnel Expenses Operational Expenses Fees to JVs Trading-related Expenses Other Depreciation Occupancy and Rental Fixed Cost (Million Yen)

Characteristics of Business and Performance Cost Analysis (Consolidated)

* Excluding the Data Transfer Cost (Operational Expenses) to JV Securities Companies in 2Q & 4Q FY2016

Increase in salaries

• f employees by

acquiring Takagi Sec.

1H calculated excluding Takagi Sec. and ETERNAL

SLIDE 24

Progress of New Project

SLIDE 25

17

Major Initiatives and Project Progress since FY2016

Project Achievement/Status Outlook 2016

• Mar. “Orque d’or”

Opened facility in Nagoya

Started services for high-net-worth customers and already profitable with assets amassing to JY200 billion. Plan to expand to Tokyo

• Apr. ANAM

Own 33%

Started surplus fund management business for affiliate local banks as a new revenue source (212.9 billion yen

• f AUM as of Sep. 2017)

To receive income scream to become profitable

• Sep. Ace Sec.

Own 29%

Started alliance to wholesale our

• products. Their client base is helping

us increase trading revenue Pursue further viable strategy for the alliance

2017

• Jan. Hokuhoku TT

Sec.

Own 40%

(jointly owned with Hokuhoku FG) Commenced securities brokerage

• peration and made a jump start with

profit as of 1Q of this fiscal year To develop new clients and

• assets. Plan to expand with

new branch network.

Utsunomiya Sec.

Business alliance with Tochigi Bank Owning 40% as of April 2017 and started JV operation To develop new clients and assets

• Feb. Takagi Sec.

Own 100%

To expand business base in Kansai

• area. Operating loss of 783 million yen

as of 1H FYE Mar. 2018 Rebuilding business strategy to this FY’s positive turnaround

• Mar. ETERNAL

Own 100%

To expand insurance business base To strengthen its business and explore effective operating synergy with MONEQUE

“MONEQUE”

Opened 3 outlets

Launched as a new service brand to attract younger customers with “one-stop for every thing” channel meeting their changing financial needs over their life-time

To identify optimal operating style to draw customers. Plan to expand in Chubu area.

SLIDE 26

Capital Policy

SLIDE 27

19

2.3 1.4 2.3 3.7 2.6 3.8 3.7 2.7 3.2 4.5 2.6 4.2 4.5 2.9 3.8

1 2 3 4 5 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2Q (%)

4.2 4.0 2.9 9.7 1.4 8.6 17.7 8.9 17.0 12.6 8.6 12.8 8.1 4.9 9.5 7.8 8.7 8.4

10 20 30 (%)

21.0 7.7 8.0 42.7 7.90 43.0 87.7 57.6 99.6 69.5 61.7 87.1 46.9 36.5 68.3 45.7 67.3 61.5

50 100 150 (Yen)

130.4 61.6 61.5

Tokai Tokyo Nomura Daiwa

Capital Policy

EPS ROE Dividend Yield

Comparison with Major Securities Companies

*EPS and ROE is annualized by multiplying 2 to actual semi-annual figures.

SLIDE 28

20 March 2013 March 2014 March 2015 March 2016 March 2017

• Sep. 2017

Shareholders' Equity (million yen) 121,947 140,462 154,633 153,089 155,312 169,482 Treasury Stock 4,207 3,835 3,639 6,390 7,572 7,528 Dividend per Share (yen) 16.00 32.00 34.00 28.00 26.00 14.00 Dividend Payout Ratio (%) 37.4 % 36.5 % 48.9 % 59.7 % 56.9 % 62.1 % DOE (Dividend On Equity ratio) (%) 3.6 % 6.5 % 6.1 % 4.8 % 4.4 % 4.3 %

Capital Policy Shareholder Information

*Dividend per share of Sep. 2017 is semi-annual, and its payout ratio is calculated excluding 11.16 billion yen of negative goodwill caused by acquiring Takagi Securities, and also the ratio is annualized by multiplying 2 to actual semi-annual figures.

Major Shareholders

• No. of

shares (K) Ownership Ratio (%)

• "Schroders Group"(*)

18,200 7.55 1 Japan Trustee Services Bank, Ltd. (Trust Account) 12,875 4.58 2 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 12,016 4.28 3 The Master Trust Bank of Japan, Ltd. (Trust Account) 10,379 3.69 4 Mitsui Sumitomo Insurance Co., Ltd. 9,033 3.21 5 Toyota Financial Services Corporation 8,885 3.16 6 The Bank of Yokohama, Ltd. 7,014 2.50 7 Nippon Life Insurance Company 5,611 2.00 8 J. P. Morgan Chase Bank 385166 4,840 1.72 9 Sumitomo Mitsui Trust Bank, Limited 4,800 1.71 10 Meiji Yasuda Life Insurance Company 4,406 1.57

(As of September 30, 2017)

 Distribution of Shareholders

* The data of the shareholder ranking No. 1 through 10 were identical in substance to what we had publicized for disclosure purpose. However, the Change Report Pertaining to the Report of Possession of Large Volume submitted on November 7, 2017 Schroder group show that their 4 companies altogether owned 7.55% of Tokai Tokyo Financial Holdings, Inc. as of October 31, 2017

 Indicators per share  Announcement of Share Repurchase and Retirement

On Oct. 27, 2017, the Company announced its Board of Directors’ decisions of 1) share repurchase up to 5 million shares (1.91% of total issued shares excluding treasury shares, up to 3.5 billion yen) 2) share retirement of 10 million shares (3.56% of total issued shares including treasury shares before retirement)

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Capital Policy

i) To keep existing operations Required capital to keep

• perations by securities

brokerage subsidiaries 75.7 Required capital at equity-method affiliates 20.6 Other fixed assets 14.0 Sub total 110.3 ii) Available surplus capital Available for further allocation 61.2

(Billion yen, as of the end of Sep. 2017)

Mid-long term debt 73.6

Consolidated

• wn capital

Investment securities 26.0 Other investment 22.5 Cash equivalent 86.3 Total 134.8 171.5 iii) Actual usage

SLIDE 30

New Management Plan “New Age’s Flag Bearer 5”

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23

• 2. Alliance

& Platform

• 4. Humanity
• 5. Risk

Management

• 3. Expertise
• 1. Community

& the Middle

Innovation Jump up 5

(2006 - 2009)

IT Strategy Instrumental to Innovation + Alliance Strategy

Premier House

Blue Ocean Strategy M&A Strategy

TT Revolution

(2009 - 2012)

Ambitious 5

(2012 – 2017)

Growth Strategy

Overseas Operation Retail Capital Policy Market& Product Tokai Tokyo Securities

Amplify Earnings Power

• Growth Potential
• Productivity
• Communication
• Customer Loyalty
• Super Community

House

• Corporate Governance/

Corporate Culture Innovation

• Business Portfolio /

Business Model Innovation

• Network Reform
• Product and Service

Innovation

• Employees Productivity

Innovation

Group Power

New Management Plan “New Age’s Flag Bearer 5” Achievement under Past Business Plan Ambitious 5

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Assets under Custody

¥4.4 trn

¥6.1 trn

As of March 2012

As of March 2017

73%

58%

3 banks

6 banks

Retail Dependence Ratio Allied Regional Banks

13 companies

50 companies

Clients of Broker’s Broker Business

New Management Plan “New Age’s Flag Bearer 5” Achievements under the Previous Business Plan “Ambitious 5”

25％

Assets under Custody of High Wealth Segment

14%

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25

Governance (Advanced/Independent) Diversity Culture of discipline Integrated spirit

• f the organization

Drive to challenge Measuring capability Strengthened professionality Balance of

• ffence and defence

Promoted

• riginality

Communication capability Enriched education 1) Expanded business base 2) Strengthened activity in Chubu area 3) Promoted High Wealth Business 4) Enhanced Market Division 5) Step-up of Investment Bank Division

Management Base

New Management Plan “New Age’s Flag Bearer 5” Achievements under the Previous Business Plan “Ambitious 5”

Business Model

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26

1.0 6.0 11.0 16.0 21.0 26.0 31.0 2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4 2016/4 2017/4 対野村倍率 対大和倍率 350,000 1,350,000 2,350,000 3,350,000 4,350,000 5,350,000

野村 大和

50,000 100,000 150,000 200,000 250,000 300,000 350,000

2007/4 2008/4 2009/4 2010/4 2011/4 2012/4 2013/4 2014/4 2015/4 2016/4 2017/4 Tokai Tokyo

Market Cap Trend in comparison with Nomura and Daiwa

Achievements under the Previous Business Plan “Ambitious 5”

Nomura Daiwa Tokai Tokyo

Market Cap Multiple

Nomura/Tokai Tokyo Daiwa/Tokai Tokyo

New Management Plan “New Age’s Flag Bearer 5”

2017/10

SLIDE 35

27

Changing of Business Environment Precaution for financial environment

②Era of disparity ①Aged society (Era of big inheritance) ③Intensified competitiveness ④Work style reform

Opaque, insecure and uneasy era

Big Data

Account aggregation Robot advisor

Blockchain ＡＩ Digital era of

• FinTech -

Fiduciary Duty Governance Monitoring Business model

New guidance by FSA Geopolitical issues

New Management Plan “New Age’s Flag Bearer 5”

SLIDE 36

28

The Overall Picture

“New Age’s Flag Bearer 5”

Further Strengthen Operating Base and Achieve Growth Pursuit Strategic Themes Productivity Revolution Growth by M&A Asset management Pension and insurance service Banking service Overseas market expansion Expansion to Metropolis Organization Defense Mechanism Humanity Professionality Market & Investment Bank Great Platform Orque d’or MONEQUE Matured Unique development of retail strategy

New Management Plan “New Age’s Flag Bearer 5”

SLIDE 37

“MONEQUE”

Pursue Unique Segment-Specific Strategy in Retail Operation

“Orque d’or”

Nagoya Tokyo Kansai

After-death care service IFA Restructuring

• utlets

Integrated sales activity for corporate and retail Asset analysis Sales activities at affiliates

Matured Segment

Online brokers “Insurance Terrace” (by ETERNAL) “Mutual Fund Counter” (by Takagi Sec.) Sony Bank FinTech

• MoneyForward
• KALAIS
• Life Plan Simulation

29

New Management Plan “New Age’s Flag Bearer 5”

SLIDE 38

30

M&A Financing Underwriting bonds

Corporate Finance Market Corporate Sales

Developing new product Enhancement

• f location

Upgrading system & infra- structure Upgrading information Global market

IPO

■ Strengthen Trilateral Approach

Market Division

■ Leap of Market Division

Developing new market globally Strengthening manpower

New Management Plan “New Age’s Flag Bearer 5”

SLIDE 39

31

Organizational Administration Retail Sales Operation

• Branch reorganization
• Sales force with new IT equipment

Human Resource Management Practice System Infrastructure

Integrate all the group resources and pursue synergy for the group

Productivity Revolution New Management Plan “New Age’s Flag Bearer 5”

SLIDE 40

32

Local banks

Hamagin TT Sec.

Nishi-Nippon City TT Sec.

Ikeda Senshu TT Sec.

Securities companies

Provided functions Strengthen functions New functions Utsunomiya Sec.

ＩＦＡs Local financial firms

YM Sec. Hokuhoku TT Sec.

FinTech （ＩＴ・ＡＩ） Information Call center Investment Bank Security brokerage Education Asset management Overseas Operation Insurance High-net- worth M&A

“Mutual Fund Counter” (by Takagi Sec.)

Consulting Trust bank MONEQUE

Securities companies

Platform alliances

（53 entities as of Sep. 2017）

Alliance Strategy and Great Platform New Management Plan “New Age’s Flag Bearer 5”

SLIDE 41

33

Area Strategy

Tokai Tokyo Securities : 66 operating outlets

Tokai 42 outlets （33 in Aichi Pref.）

Kyushu 1 outlets Chugoku/ Shikoku 4 outlets Kinki 3 outlets Koushin’etsu/ Hokuriku 2 outlets Hokkaido/ Tohoku 1 outlets

Kanto 13 outlets （8 in Tokyo） Utsunomiya Securities (6 operating outlets) (4 operating outlets) YM Securities Nishi-Nippon City TT (16 operating outlets) (19 operating outlets) Hamagin TT (16 operating outlets) Senshu Ikeda TT

■Nationwide network and plan to expand in Kanto area

(As of June 30, 2017)

(3 operating outlets) Hokuhoku TT

Takagi Securities : 14 operating outlets JV Securities : 64 operating outlets

New Management Plan “New Age’s Flag Bearer 5”

SLIDE 42

34

Inquiries to be directed to:

Effective April 1, 2009, the Company spun off its financial instrument operation and Tokai Tokyo Security Co.,

• Ltd. (former Tokai Tokyo Securities Spin-off Preparation Co., Ltd.) took it over. The Group (Tokai Tokyo

Financial Group) at the same time shifted to a holding company system. Effective the same date, the Company and Tokai Tokyo Securities Spin-off Preparation Co., Ltd. changed their corporate names to Tokai Tokyo Financial Holdings, Inc., and Tokai Tokyo Securities Co., Ltd. respectively. The result for the fiscal year ended on March 31, 2009 or any earlier date account for the operation of the former Tokai Tokyo Securities Co., Ltd. under then existing organizational structure.

Corporate Communications Department TEL: +81-3-3517-8618 FAX: +81-3-3517-8314 E-mail: fh_ir@tokaitokyo-fh.jp

 This material is intended to provide information regarding the Company’s most recent operational result and NOT to solicit investment in securities issued by the Company.