IR Presentation Supplementary Material August 2018 Contents Overview - - PowerPoint PPT Presentation

SLIDE 1

IR Presentation Supplementary Material

August 2018

SLIDE 2

1

Overview of Tokai Tokyo Financial Holdings 2 Business Characteristics 4 Financial Overview 6 Consolidated 7 (TTSC) Business Foundation 9 Retail Segment 12 Market Segment 20 Joint Ventures with Regional Banks / Broker’s Broker Business 23 Corporate Sales / Corporate Finance 25 Wealth Management Segment (Premier VIP / Orque d’or) 28 One Stop Channel Segment (MONEQUE) 30 Capital Policy (Shareholder Info.) 32 Business Theme (New Age’s Flag Bearer 5) 34

Contents

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

SLIDE 3

Overview of Tokai Tokyo Financial Holdings

SLIDE 4

3

Effective April 1st 2009, the Group moved into holding company structure with the following purposes.

 Separation of the daily routine of running security house operation from the group management duty to expedite the decision making process  Holding company structure intended to secure mobility and flexibility in order to implement expeditiously regional strategy and alliance strategy

Overview of Tokai Tokyo Financial Holdings

Group Structure

Overseas Business Alliance Group Structure

* In April 2010, Tokai Tokyo Securities Co., Ltd. and Toyota Financial Services Securities Co., Ltd. merged.

Tokai Tokyo Financial Holdings, Inc.

a holding company listed on TSE and NSE

as of March 31, 2018 Hokuhoku Tokai Tokyo Securities Tokai Tokyo Securities (Asia) Tokai Tokyo Securities Europe Tokai Tokyo Securities (USA) Tokai Tokyo Global Investments Tokai Tokyo Investment Management Singapore YM Securities Consolidated Subsidiaries Equity Method Affiliates Tokai Tokyo Business Service Tokai Tokyo Service Tokai Tokyo Wealth Consulting Tokai Tokyo Investment Tokai Tokyo Asset Management Takagi Securities Tokai Tokyo Research Institute Tokai Tokyo Academy Philip Tokai Tokyo Investment Management Hamagin Tokai Tokyo Securities Nishi-Nippon City Tokai Tokyo Securities Senshu Ikeda Tokai Tokyo Securities All Nippon Asset Management Eternal Utsunomiya Securities Ace Securities Tokai Tokyo Securities* Pinnacle Kenanga Investment Bank (Malaysia) Guotai Junan Securities (China) Phillip Securities (Singapore) First Metro Investment Corporation (Philippines) The Bank of East Asia (Hong Kong) Stifel Financial Corp. (USA) Bualuang Securities (Thailand) Mirae Asset Daewoo Securities (Korea) Bao Viet Securities (Vietnam) Mebius

SLIDE 5

Business Characteristics

SLIDE 6

5

Aichi 14% Gifu 2% Mie 4% Shizuoka 5% Osaka Area 12% Others 46% Tokyo Area 17% Chubu Area 12% Osaka Area 14% Others 46% Tokyo Area 28%

Chubu Area 13% Osaka Area 14% Others 41% Tokyo Area 32%

Solid Business Base in Tokai Area

“Tokai Area” consists of four prefectures, Aichi, Mie, Gifu and Shizuoka.

Chubu Area 25%

2014 2014 2014 Block GDP Population Value of Shipments of Manufactured Goods

“Tokyo Area” consists of Tokyo, Kanagawa, Saitama and Chiba. “Osaka Area” consists of Osaka, Kyoto, Hyogo and Nara.

Ongoing 3 Big Projects in Chubu Area Hydrogen fuel cell vehicle MRJ Chuo Shinkansen*

* operated by Superconducting Maglev System

Aichi has been No.1 Since 1977

Aichi has No.1 share in the 10 (out of 24) industries ・Transportation Equipment (39%－Toyota, Suzuki, Yamaha Motor, Denso, Aishin, Mitsubishi Heavy Industry) ・Production Machinery (11%－YAMAZAKI MAZAK, Okuma) ・Business oriented Machinery (16%－Brother Industries)

Business Characteristics

SLIDE 7

Financial Overview

SLIDE 8

7

Revenue Breakdown by Product ‐ Consolidated

Financial Overview

Consolidated

11 5 6 5 6 5 7 5 6 4 4 3 3 2 3 3 3 3 3 3 3 8 6 7 4 4 5 5 4 5 4 4 3 3 2 6 3 4 5 6 4 3 3 2 3 3 2 4 6 5 5 2 3 1 2 3 2 5 5 6 5 6 6 1 1 1 1 1 2 3 1 1 2 1 1 1 2 1 6 5 4 6 5 4 5 5 4 4 4 4 3 4 4 5 4 4 6 4 3 1 1 1 1 1 1 1 1 2 1 30 19 21 18 18 19 23 19 20 15 16 14 14 13 17 18 19 19 23 20 17

• 5

5 10 15 20 25 30 35 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Billion Yen) Other Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities Mutual Funds Total

SLIDE 9

8

9,231 9,516 9,759 9,767 9,967 9,923 10,244 10,074 11,727 11,987 6,124 1,801 1,740 1,741 1,785 1,790 1,865 1,950 2,052 1,987 2,080 991 664 808 769 731 883 847 894 820 1,404 1,406 718 3,017 2,893 2,988 2,968 2,972 3,064 3,129 2,941 3,433 3,362 1,766 1,808 1,902 1,825 1,880 1,925 2,013 1,946 1,967 2,238 2,327 1,182 957 982 909 948 918 928 884 886 929 1,013 532 1,183 1,165 1,108 1,095 1,284 1,096 1,357 1,289 1,972 1,776 915 6,636 3,584 3,866 4,605 2,831 2,162 1,786 3,230 3,208 4,184 1,298 2,014 2,214 1,846 2,251 2,123 1,915 1,880 2,011 2,469 2,426 1,002 2,781 2,399 1,660 2,726 2,273 1,541 1,292 2,086 1,962 2,402 998 465 499 469 586 613 680 592 590 571 590 236 79 79 149 164 30,644 27,789 26,951 29,350 27,588 26,044 26,111 28,117 31,909 33,562 15,765

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 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Million yen)

Operational expenses (Variable) System expenses (Variable) Trading-related expenses (Variable -JV) Trading-related expenses (Variable-others) Personnel expenses (Variable) Other Depreciation Trading-related expenses (Fixed) Occupancy and rental Operational expenses (Fixed) System expenses (Fixed) Personnel expenses (Fixed) Fixed cost

Total

Consolidated

Personnel expenses increased due to consolidation of group companies Variable cost Fixed cost

Financial Overview

Cost Analysis

SLIDE 10

9

Revenue Breakdown by Business Segment (Quarterly)

QoQ (Million Yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

4Q FYE Mar 2018 =100

Retail Sales 13,243 9,635 10,051 8,666 8,659 8,089 10,328 10,334 10,300 10,085 11,890 10,721 8,943 83 Equities 6,550 4,774 5,163 3,780 4,555 3,721 5,154 5,243 6,085 6,082 6,729 6,162 5,410 88 Japan Equities 4,314 3,365 3,529 2,674 3,145 1,857 2,919 2,450 2,999 2,619 3,576 2,894 2,125 73 Foreign Equities 2,236 1,410 1,634 1,106 1,410 1,864 2,244 2,793 3,085 3,463 3,151 3,268 3,285 101 Bonds 776 758 800 459 759 1,490 1,854 1,440 1,201 1,081 1,940 1,253 849 68 Foreign Bonds 292 393 275 142 178 349 356 348 294 209 148 93 140 151 Structured Bonds 472 354 496 276 542 1,105 1,496 1,038 888 844 1,766 1,137 665 58 Mutual Funds 5,133 2,999 2,880 2,783 2,575 2,037 2,424 2,692 2,199 2,127 2,436 2,503 2,089 83 Corporate Sales 1,025 950 847 1,070 989 962 1,076 1,029 941 884 1,059 967 880 91 Equities 346 325 355 344 323 314 404 344 382 398 448 435 379 87 Japan Equities 346 325 355 343 322 314 404 344 377 394 441 432 365 84 Bonds 541 469 422 569 525 512 495 479 456 372 475 345 354 103 Foreign Bonds 18 40 31 78 37 30 85 41 11 5 31 31 14 45 Structured Bonds 282 244 220 193 166 235 200 296 217 193 250 165 140 85 Japan Bonds 240 185 171 297 322 247 211 141 229 174 192 146 198 136 Mutual Funds 115 102 80 70 66 65 62 64 65 67 78 102 102 100 Market ＆ Product 4,481 4,509 3,960 4,068 3,722 4,187 5,267 6,018 5,126 6,070 6,774 6,235 5,070 81 Revenue from Customers 4,215 3,375 3,528 3,008 2,673 3,158 3,874 4,449 4,409 4,851 5,652 4,996 4,726 95 Japan Equities 157 133 171 159 151 130 184 172 192 186 245 214 190 89 Japan Bonds 81 69 61 107 127 84 127 129 84 66 70 71 95 134 Foreign Equities 1,362 1,057 1,167 639 811 1,004 1,223 1,480 1,811 2,049 1,988 2,130 2,200 103 Foreign Bonds & Other 2,615 2,116 2,127 2,104 1,585 1,940 2,341 2,668 2,322 2,550 3,349 2,581 2,240 87 Position Revenue 266 1,134 433 1,060 1,049 1,029 1,393 1,569 725 1,203 1,119 1,236 345 28 Corporate Finance 154 162 291 333 236 210 397 359 249 285 348 288 355 123 Underwriting 93 110 253 270 188 128 317 197 175 173 256 156 270 173 Bonds 85 68 94 103 168 106 204 116 121 93 164 115 164 142 Equities 8 42 158 167 20 21 112 81 54 79 92 41 106 258 Other 61 52 39 63 48 82 80 161 74 111 92 132 84 64 FYE Mar 2018 FYE Mar 2019 FYE Mar 2016 FYE Mar 2017

Financial Overview

(TTSC) Business Foundation

SLIDE 11

10

Financial Overview

(TTSC) Business Foundation

Mar 2014 =100 Mar 2018 =100 Total

108 100 127 100

Japan Equities

123 99

Foreign Equities

300 111 88 103 95 99 76 98 125 100

Mutual Funds Other Equities Domestic Bonds Foreign & Structured Bonds Mar 2014 =100 Mar 2018 =100 Total

109 101 127 100

Japan Equities

124 100

Foreign Equities

294 112 114 103 93 102 98 100 56 102

Other Domestic Bonds Foreign & Structured Bonds Mutual Funds Equities

1,195 1,426 1,283 1,343 1,475 1,464 34 69 47 68 92 102 89 83 75 77 76 78 236 240 197 223 226 224 685 685 614 564 532 520 200 247 223 235 249 250 2,440 2,752 2,441 2,512 2,652 2,640

500 1,000 1,500 2,000 2,500 3,000

FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019

Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities Total

1,987 2,339 2,080 2,257 2,475 2,469 36 72 49 70 95 106 597 622 648 630 657 679 450 480 324 378 409 418 777 834 749 693 760 762 470 495 241 246 260 265 4,320 4,844 4,094 4,276 4,659 4,701

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

FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019

Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities Total

Assets under Custody of Whole Company (Tokai Tokyo Securities) Retail Assets under Custody (Tokai Tokyo Securities) Year to Year Comparison: Assets under Custody

• f Whole Company (Tokai Tokyo Securities)

Year to Year Comparison: Retail Assets under Custody (Tokai Tokyo Securities)

(Billion Yen)

Trend in Assets under Custody

(Billion Yen)

SLIDE 12

11

Trend in Assets under Custody(by Customer and Product)

QoQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

4Q FYE Mar 2018 = 100

Retail Customers 2,798 2,492 2,628 2,441 2,298 2,339 2,576 2,512 2,591 2,678 2,809 2,652 2,640 103 Japan Equities 1,449 1,290 1,388 1,283 1,204 1,242 1,371 1,343 1,400 1,470 1,559 1,475 1,464 105 Foreign Equities 64 48 53 47 42 48 58 68 73 82 93 92 102 112 Domestic Bonds 79 74 74 75 78 78 74 77 74 73 75 76 78 99 Foreign & Structured Bonds 245 219 222 197 191 205 230 223 239 242 233 226 224 101 Mutual Funds 690 623 647 614 565 550 593 564 551 558 569 532 520 101 Other 268 236 242 223 215 213 249 235 251 249 279 249 250 99 Corporate Customers 2,195 2,009 2,017 1,652 1,634 1,666 1,756 1,763 1,861 1,967 2,061 2,006 2,061 106 Japan Equities 939 817 861 797 781 808 889 913 955 1,018 1,076 999 1,005 107 Foreign Equities 3 2 2 2 2 2 2 2 2 2 3 3 3 100 Domestic Bonds 574 560 563 573 576 575 575 552 568 576 582 581 600 101 Foreign & Structured Bonds 239 219 237 127 134 143 145 154 177 180 185 182 194 102 Mutual Funds 149 142 124 134 130 128 131 129 145 176 200 228 242 121 Other 288 266 228 17 10 9 10 11 11 12 13 11 15 109 Whole Company 4,993 4,502 4,645 4,094 3,933 4,006 4,333 4,276 4,453 4,646 4,870 4,659 4,701 104 Japan Equities 2,389 2,108 2,250 2,080 1,985 2,051 2,261 2,257 2,355 2,489 2,635 2,475 2,469 106 Foreign Equities 67 50 55 49 44 50 60 70 75 85 96 95 106 113 Domestic Bonds 653 635 638 648 655 653 650 630 643 650 658 657 679 101 Foreign & Structured Bonds 485 439 460 324 326 349 375 378 417 423 418 409 418 101 Muual Funds 840 765 771 749 696 678 725 693 697 734 769 760 762 105 Other 556 502 470 241 225 222 260 246 263 262 292 260 265 100 (Billion Yen) FYE Mar 2016 FYE Mar 2017 FYE Mar 2019 FYE Mar 2018

Financial Overview

(TTSC) Business Foundation

SLIDE 13

12

13.4% 11.1% 11.5% 15.5% 17.5% 19.8% 17.2% 28.6% 26.5% 26.8% 31.0% 31.2% 34.0% 32.8% 46.9% 49.2% 48.7% 43.8% 42.7% 38.9% 42.2% 8.5% 10.6% 10.5% 7.3% 6.5% 5.5% 5.9% 2.5% 2.6% 2.5% 2.4% 2.1% 1.9% 1.9%

5,000 10,000 15,000 20,000 25,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Non-Face- to-Face General Middle Wealth High Wealth

(Million Yen)

Revenue Breakdown by Wealth Assets under Custody Breakdown by Wealth

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

Financial Overview

Retail Segment

535 503 584 610 725 744 742 637 583 615 614 661 654 653 990 950 918 911 917 892 886 238 240 229 204 194 182 180 210 201 215 232 254 253 260

500 1,000 1,500 2,000 2,500 3,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Billion Yen)

SLIDE 14

13

Revenue Breakdown by Age

Financial Overview

Retail Segment

Assets under Custody Breakdown by Age

SLIDE 15

14

60.3% 60.6% 63.7% 65.7% 67.1% 67.5% 68.7% 22.2% 20.8% 20.1% 20.3% 19.1% 19.5% 18.7% 15.0% 16.1% 13.7% 11.6% 11.7% 11.1% 10.7% 2.5% 2.6% 2.5% 2.4% 2.1% 1.9% 1.9%

5,000 10,000 15,000 20,000 25,000

1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

(Million Yen)

Non-Face- to-Face Western Japan Eastern Japan Central Japan

Revenue Breakdown by Region

Financial Overview

Retail Segment

1,577 1,508 1,591 1,615 1,739 1,731 1,722 505 474 497 494 518 510 508 318 294 260 229 240 230 230 210 201 215 232 254 253 260

500 1,000 1,500 2,000 2,500 3,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

(Billion Yen)

Assets under Custody Breakdown by Region

SLIDE 16

15

7,679 6,203 5,003 5,369 5,619 6,477 2,125 3,645 2,740 3,273 5,037 6,550 6,422 3,285 1,534 1,258 2,249 3,302 2,285 3,195 849 8,131 5,663 4,611 5,116 4,327 4,955 2,089 1,889 2,852 1,612 1,839 1,602 1,563 594 22,878 18,717 16,748 20,663 20,385 22,611 8,943

5,000 10,000 15,000 20,000 25,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

(Million Yen)

Other Mutual Funds Bonds Foreign Equities Japan Equities Total

Revenue Breakdown by Product

1,322 1,302 1,267 1,377 1,514 1,527 1,517 49 48 49 69 84 93 104 80 79 82 81 77 80 82 226 205 215 234 255 238 235 850 830 754 787 794 766 753 21 18 19 23 26 27 29

500 1,000 1,500 2,000 2,500 3,000

1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities

(Billion Yen)

Retail Segment

Financial Overview

Assets under Custody Breakdown by Product

(Mostly foreign/structured bonds)

SLIDE 17

16

Net Inflow of Cash & Securities (Retail Customers)

Retail Segment

Financial Overview

20 15

• 2

8

• 5

5

• 18

15 1 2 5

• 8

5

• 1

6 2

• 10

22 16 3

• 1

4

• 12

18

• 9
• 20
• 10

10 20 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

(Billion yen) Net Inflow of Cash Net Inflow of Securities Net Inflow of Cash and Securities * Excluding the transfer amount to JV Securities Companies in 2Q & 4Q FY2016

SLIDE 18

Retail Segment

17

Financial Overview

717 620 649 814 934 768 613 693 743 844 272

100 200 300 400 500 600 700 800 900 1,000 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Billion Yen)

34 31 27 26 25 19 17 19 17 21 18

5 10 15 20 25 30 35 40 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

（Billion Yen） 13 9 8 8 7 6 5 5 5 6 2

2 4 6 8 10 12 14 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Billion Yen)

Margin Trading Positions Trading Volume of Japan Equities Japan Equities Commission

Source: Data from Retail Company

SLIDE 19

18

Retail Segment

Financial Overview

39 48 29 36 51 72 50 49 86 96 107 7 13 20 35 59 74 72 63 92 116 126 3 7 8

20 40 60 80 100 120 140

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2013 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2018 FYE Mar 2019 Tokai Tokyo Securities Joint Ventures & Broker's Broker Business Takagi Securities

(Billion Yen)

Foreign Equities Assets under Custody

Source: Data from Retail Company

200 427 428 244 280 305 196 124 94 110 78 98 38 651 771 785 752 735 770 689 675 601 619 582 557 532

100 200 300 400 500 600 700 800 900 50 100 150 200 250 300 350 400 450 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2013 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

Sales Volume (LHS) Mutual Funds Assets under Custody (RHS) (Billion Yen) (Billion Yen)

Mutual Funds Sales Volume / Assets under Custody

SLIDE 20

19

Retail Segment

Financial Overview

925 850 988 906 1039 958 1033 912 1037 981 1065 191 190 190 190 193 193 221 279 283 282 287

200 400 600 800 1,000 1,200 1,400 1,600 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Employees of Retail Company Second Employees to Joint Ventures (Number of Staff)

Source: Data from Retail Company

Number of Sales Representatives

SLIDE 21

20

1,004 412 255 1,343 595 688 281 587 987 2,196 2,196 1,163 1,753 424 2,213 1,633 1,819 2,685 4,042 4,203 2,177 4,607 4,708 3,647 4,619 5,147 6,021 2,062 576 286

• 8

439 255 341 124 8,989 8,028 7,909 11,284 11,204 13,009 5,070

• 2,000

2,000 4,000 6,000 8,000 10,000 12,000 14,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

(Million Y en) Other Foreign Bonds and Derivatives Foreign Equities Bond Trading Equity Trading Total

Financial Overview

Market Segment

Trading Revenue by Product

SLIDE 22

21

7,590 6,536 5,831 8,323 9,265 10,653 4,725 1,399 1,492 2,078 2,962 1,928 2,355 345 617 303 201 139 166 124

• 54

9,607 8,332 8,110 11,424 11,359 13,132 5,016

• 2,000

2,000 4,000 6,000 8,000 10,000 12,000 14,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Million Y en)

Fund Revenue Position Revenue Customer Revenue Flow

Total

2,791 3,172 2,508 3,471 3,962 4,039 1,689 4,128 2,829 2,795 3,967 4,289 5,286 2,251 671 536 528 879 1,016 979 582 254 146 97 59 7,590 6,536 5,831 8,323 9,265 10,653

2,000 4,000 6,000 8,000 10,000 12,000 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Million Y en) Other Takagi Securities Broker's Broker Business JV TTSC Total Total

4,726

Breakdown of Customer Revenue Flow Revenue Breakdown by Category

Financial Overview

Market Segment

SLIDE 23

22

Market Segment

Financial Overview

Number of Staff (Market Segment)

136 131 114 125 137 138 141 140 147 149 142 147 146

20 40 60 80 100 120 140 160 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2013 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Number of Staff)

SLIDE 24

23

Joint Ventures with Regional Banks / Broker’s Broker Business

Financial Overview

Assets under Custody by Product – from JVs (6 Entities)

276 345 365 346 345 436 535 561 566 16 25 24 23 24 27 31 34 37 78 55 57 53 49 72 75 77 78 223 205 189 220 255 281 351 320 339 310 340 309 301 293 340 353 357 352 59 77 67 56 59 88 99 100 92 963 1,048 1,010 998 1,025 1,245 1,444 1,450 1,464

200 400 600 800 1,000 1,200 1,400 1,600 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities

(Billion Yen)

Total

SLIDE 25

24

Joint Ventures with Regional Banks / Broker’s Broker Business

Financial Overview

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 1 1 1 1 2 2 2 2 4 3 2 3 2 2 2 2 2 2 1 1 1 2 2 2 2 2 2 2 0 0 5 5 6 6 6 5 5 4 4 4 5 6 6 6 8 7 6

1 2 3 4 5 6 7 8 9 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities

(Billion Yen)

Total

72 94 110 134 163 130 140 93 107 89 136 119 146 134 188 166 148

16 30 35 43 42 43 49 23 38 50 48 56 54 60 59 69 71 57 55 81 72 78 51 43 38 35 36 53 77 75 81 126 94 74 72 72 70 55 60 49 48 37 42 33 46 58 48 54 68 58 46 1 2

221 258 299 306 346 276 282 194 224 210 285 318 325 334 444 391 344

100 200 300 400 500 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Foreign Equities Japan Equities

(Billion Yen)

Total

39 44 69 63 71 47 38 33 31 32 50 75 70 73 122 89 68

20 40 60 80 100 120 140 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 (Billion Yen)

JV Affiliates

Product Revenue ‐ from JVs (6 Entities) Sales of Foreign & Structured Bonds Sales Volume ‐ from JVs (6 Entities)

Joint Ventures

10 12 11 9 8 12 13 15 6 2 4 6 8 10 12 14 16 18

1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019

（Billion Yen）

Operating Revenue

SLIDE 26

25

Corporate Sales / Corporate Finance

Financial Overview

573 656 671 699 636 747 772 873 365 391 406 425 468 569 352 403 338 199 381 532 584 523 468 622 427 477 155 175 229 217 150 132 126 132 182 102 142 187 77 77 146 258 82 138 44 1,661 2,011 1,975 1,917 1,951 2,104 1,825 2,028 880

500 1,000 1,500 2,000 2,500 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Mutual Funds Foreign & Structured Bonds Domestic Bonds Japan Equities

(Million Yen)

Total

394 504 463 512 583 576 566 612 284 529 539 617 600 627 644 587 523 290 114 214 228 228 204 179 135 195 28 344 418 395 331 299 463 336 429 142 86 100 112 123 83 91 70 111 54 69 73 93 65 113 57 86 55 41 125 162 66 59 41 94 45 105 41 1,661 2,011 1,975 1,917 1,951 2,104 1,825 2,028 881

500 1,000 1,500 2,000 2,500 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Retail Investors Unlisted Companies Listed Companies Public Institutions Non-Profit Corporations Small and Medium-Sized Financial Institutions Institutional Investors

(Million Yen)

Total

1,661 2,011 1,975 1,917 1,951 2,104 1,824 2,028 880 346 455 203 523 315 523 349 412 270 154 226 113 101 129 101 185 224 85

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Fees & Commissions Underwriting Corporate Sales

(Million Yen)

Revenue Breakdown by Customer Segment (Corporate Sales) Corporate Sales Revenue Breakdown by Product (Corporate Sales) Revenue of Corporate Sales & Corporate Finance Unit

SLIDE 27

26

Corporate Sales / Corporate Finance

Financial Overview

779 883 780 773 779 875 968 940 945 547 534 555 570 572 549 573 578 597 211 234 214 120 134 144 169 171 184 337 382 395 140 124 125 173 224 237 1 2 1 1 2 2 2 2 7 1,876 2,036 1,948 1,605 1,614 1,697 1,886 1,919 1,972 500 1,000 1,500 2,000 2,500 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Mutual Funds Foreign Bonds Domestic Bonds Foreign Equities Japan Equities

(Billion Yen)

Total

227 208 115 151 219 231 197 193 125 55 14 38 47 55 90 19 87 39 19 20 26 22 25 27 27 16 12 8 5 17 8 13 13 16 11 7

5 10 15 20 25 30 50 100 150 200 250 300 350 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Municipal Bonds Other Bonds Number of Underwritings (Lead Manager of Municipal Bonds) Number of Underwritings (Lead Manager of Other Bonds) (Million Yen) (Number of Underwritings) 40 187 44 289 16 153 88 86 33 25 45 6 31 25 41 46 47 73 6 21 9 13 6 12 3 6 3 5 8 5 6 6 4 7 11 3 5 10 15 20 25 50 100 150 200 250 300 350 1H 2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 CB PO IPO Number of Underwritings (PO) Number of Underwritings (IPO)

(MIllion Yen) (Number of Underwritings)

Corporate Assets under Custody Bond Underwriting Fees Equities Underwriting Fees

SLIDE 28

27

Municipal Bond Underwriting (Lead Manager)

Amount Share Amount Share Amount Share

(Million Yen)

(%)

(Million Yen)

(%)

(Million Yen)

(%) 1

Mitsubishi UFJ Morgan Stanley

3,041,540 20.29 586 1

Daiwa

436,824 20.9 83 1

Nomura

92,100 26.5 35 2

Nomura

2,960,373 19.75 595 2

Nomura

400,855 19.2 78 2

Daiwa

75,843 21.82 34 3

Mizuho

2,960,321 19.75 605 3

SMBC Nikko

379,514 18.2 76 3

SMBC Nikko

56,585 16.28 67 4

SMBC Nikko

2,553,871 17.04 576 4

Mitsubishi UFJ Morgan Stanley

314,558 15.1 66 4

Mizuho

48,884 14.06 55 5

Daiwa

2,542,052 16.96 582 5

Mizuho

296,596 14.2 63 5

Mitsubishi UFJ Morgan Stanley

48,008 13.81 23 6

Tokai Tokyo

252,490 1.68 156 6

Tokai Tokyo

121,328 5.8 26 6

SBI

9,449 2.72 75 7

Shinkin

185,600 1.24 97 7

Goldman Sachs

57,200 2.7 12 7

Ichiyoshi

3,830 1.1 28 8

Goldman Sachs

164,400 1.10 62 8

Shinkin

35,000 1.7 10 8

Okasan

2,740 0.79 38 9

Okasan

96,700 0.65 95 9

Okasan

19,529 0.9 6 9

Tokai Tokyo

2,298 0.66 9 10 Merrill Lynch Japan 53,200 0.35 35 10 Barclays 11,600 0.6 3 10 Monex 2,073 0.6 37 Company Name

Number

• f Deals

Rank

Company Name

Number

• f Deals

Rank

Company Name

Number

• f Deals

Rank

Total Straight Bond Underwriting IPO Underwriting Sources: Thomson Reuters, Capital Eye News

Corporate Sales / Corporate Finance

League Table (FYE Mar 2018: April 1, 2017 to March 31, 2018)

Financial Overview

SLIDE 29

28 623 865 1,079 1,250 1,509 1572 451 644 865 982 1126 1176 200 400 600 800 1000 1200 1400 1600 1800 FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 1Q FYE Mar 2019 Premier Vip Club Members Premier Club Members （Accounts）

Wealth Management Segment

Premier VIP Club / Premier Club Members

Financial Overview

SLIDE 30

29

“Orque d’or”

Membership service brand for qualified high‐wealth clients

SLIDE 31

30

One Stop Channel Segment

Financial Overview

48 77 94 95 105 95 83 62 63 49 83 69 75 74 106 99 72 2 2 3 3 3 4 1 4 7 17 17 12 7 3 2 1 18 34 41 27 20 30 39 20 15 26 19 25 9 24 6 7 4 113 124 125 133 160 128 107 111 106 109 111 116 103 104 98 97 86 15 15 17 21 26 25 48 23 24 22 41 50 48 44 58 53 42 199 256 279 281 314 282 281 218 217 217 270 282 249 257 273 259 206

50 100 150 200 250 300 350 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar 2019 Other Mutual Funds Foreign Bonds Domestic Bonds Foreign Equities Japan Equities

(Million Yen)

Total

Revenue Breakdown by Product Direct Margin Trading

705 3,368 3,241 4,531 7,913 9,235 11,004 11,046 181 505 736 1,066 1,298 1,395 1,413 1,452 2,000 4,000 6,000 8,000 10,000 12,000 300 600 900 1,200 1,500

2H 1H 2H 1H 2H 1H 2H 1Q FYE Mar 2015 FYE Mar 2016 FYE Mar2017 FYE Mar 2018 FYE Mar 2019 Margin Trading Positions(Right Axis ) Number of Direct Margin Trading Accounts(Left Axis) （Million Yen） (Accounts)

SLIDE 32

31

Financing needs (housing loan) Insurance needs（life/property, security/saving)

Asset management needs

（investment） （succession） Offer services necessary for each life stage （One-stop for a lifetime）

Insurance Bank / Loan Investment

One‐stop channel for asset building of the younger generation

MONEQUE One Stop Channel Segment

SLIDE 33

Capital Policy

SLIDE 34

33

Major Shareholders

• No. of

shares (K) Ownership Ratio (%)

• "Schroders Group"(*)

21,171 7.82 1 MUFG Bank, Ltd. 12,016 4.44 2 Japan Trustee Services Bank, Ltd. (Trust Account) 11,446 4.23 3 The Master Trust Bank of Japan, Ltd. (Trust Account) 10,153 3.75 4 Mitsui Sumitomo Insurance Co., Ltd. 7,283 2.69 5 Toyota Financial Services Corporation 7,280 2.69 6 The Bank of Yokohama, Ltd. 7,014 2.59 7 Nippon Life Insurance Company 5,611 2.07 8 J. P. Morgan Chase Bank 385166 5,197 1.92 9 Sumitomo Mitsui Trust Bank, Limited 4,800 1.77 10 Meiji Yasuda Life Insurance Company 4,406 1.63

(As of March 31, 2018)

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

• f Large Volume submitted on November 7, 2017 Schroder group

show that their 4 companies altogether owned 7.82% of Tokai Tokyo Financial Holdings, Inc. as of March 31, 2018

SLIDE 35

Business Theme

SLIDE 36

35

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 37

36

Pursuit of “Humanity” & “Expertise”, “Heart” & “Professionalism”

The need for high expertise

High-net-worth segment Insurance Agent MONEQUE Market and Dealing

Hire experts + Establish suitable evaluation & compensation practices

Hiring / Allocation / Training Evaluation / Compensation  Determine the right number of personnel and its allocation to match the operation getting larger & more technical  Train sales personnel to become able to induce prospects rather than push them

Accurate grasp

• f individual

employee’s skill set Build database

• f employees’

skills and expertise

The quest for professional expertise

Pursuit of Humanity (Heart) : Raise human power and explore work-style that accommodates individual personality Establish the human-power based marketing style that cannot be substituted by robot Train employees to become able to offer value to customers Elevate the level of the group’s corporate diversity that facilitates diversification & specialization of its business operation Accomplish both “work-style revolution” that nurtures each employee’s individuality & cutting-edge experts recruitment

 Overhaul the entire HR practice including bonus payment

• Separate evaluation &

compensation for experts from that for ordinary employees

• Overall personal assessment &

performance evaluation allocates more weight on expertise & special skill

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

SLIDE 38

37

Memo

SLIDE 39

38

Memo

SLIDE 40

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.  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.

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