IR Presentation Financial Summary & Business Strategy

IR Presentation

Financial Summary & Business Strategy

November 2018

Contents

Introduction: Overview of Tokai Tokyo Financial Holdings 2

Introduction: Business Characteristics 6 Latest Financial Summary 8 Financial Structure & Business Focus 14 Capital Policy 21 Progress of Strategic Project 24 Progress of “New Age’s Flag Bearer 5” 27

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

1 Introduction: Overview of Tokai Tokyo Financial Holdings Introduction: Overview of Tokai Tokyo Financial Holdings

Corporate Profile Company Name: Tokai Tokyo Financial Holdings, Inc. (TSE, NSE:8616) Representative: Tateaki Ishida, President & CEO Consolidated Net Assets: 171 billion yen Client Assets under Custody of Tokai Tokyo Securities: 4,816 billion yen (Retail Client Assets: 2,676 billion yen) Market Capitalization: 176 billion yen Number of Employees: Holding Company 192 Consolidated Basis: 3,540 (As of Sep 30, 2018) Group History Current group configuration was formed in Apr ‘17 October 2000 through merger between Tokyo Apr ‘10 Securities and Tokai Maruman Securities Relocated HQ of TTSC Acquired Apr ‘09 to Nagoya City Group company of the Takagi Sec. Nikko Securities (a) Tokai Tokyo Apr ‘10 Mar ‘17 Sep ‘17 Financial Holdings TTSC merged with Tokyo was established Toyota Financial Acquired Acquired

Securities Services Sec. ETERNAL Pinnacle

Tokai Tokyo Securities

Tokai Maruman Nov ‘08 May ‘10 Oct ‘12 Jan ‘17 Apr ‘17 Mar ‘18

Securities Oct ‘07 Hamagin Nishi- Senshu Hokuhoku Tochigi Bank Basic Agreement YM TT Nippon Ikeda TT TT invested in with Juroku Bank Group company of the Utsunomiya Tokai Bank(b) City TT regarding

Securities Comprehensive Business Alliance * Currently, (a) SMBC Nikko Securities, (b) Bank of Tokyo-Mitsubishi UFJ

3 Introduction: Overview of Tokai Tokyo Financial Holdings Area Coverage [Brokerage Business]

Nationwide Network

Tokai Tokyo Securities : 66 operating outlets Takagi Securities : 12 operating outlets JV Securities : Tohoku 77 operating outlets 1 outlets Koushin’etsu 2 outlets Senshu Ikeda TT Hokuhoku TT (5 operating outlets) (7 operating outlets)

Kinki Tochigin TT 3 outlets f.k.a. Utsunomiya Securities (7 operating outlets) Kanto YM Securities 12 outlets (22 operating outlets) (8 in Tokyo) Hamagin TT (17 operating outlets) Kyushu Tokai 1 outlets Chugoku/ 43 outlets Shikoku (33 in Aichi Pref.) 4 outlets ETERNAL Nishi-Nippon City TT (Insurance Terrace 57 outlets)

(19 operating outlets) (As of Oct 1, 2018)

4 Introduction: Overview of Tokai Tokyo Financial Holdings Overseas Network

Tokai Tokyo Securities Europe Mirae Asset Stifel Financial Corp. Daewoo Securities Guotai Junan Securities Tokai Tokyo Financial Holdings

Tokai Tokyo Securities (Asia) Tokai Tokyo Securities (USA) Bualuang Securities Bank of East Asia

Kenanga Investment Bank Bao Viet Securities Phillip Securities First Metro Investment Corporation

Phillip Tokai Tokyo Tokai Tokyo Investment Investment Management Management Singapore

Tokai Tokyo Global Investments

Headquarters Overseas Subsidiary Overseas Affiliate Business Partnership Business Partnership with Capital Injection (As of Oct 1, 2018)

5 Introduction: Business Characteristics Introduction: Business Characteristics

Strength in Market Div. Segmented - Foreign equities Alliance retail business - Structured Notes - Top lead manager of MDBs bonds & Platform - High-net-worth Corporate sales & - 7 alliances with regional banks for jointly funded securities - Matured investment bank - Next generation - Brokers’ broker business (58 cos.) - Bonds - IPOs

Solid business base in Tokai Area Tokai area: No.1 shipment of manufactured goods / Linear bullet train Hydrogen fuel cell vehicle / Mitsubishi Regional Jet (MRJ) Sound management Governance: Outside directors / Audit & Supervisory Committee / 3 defense lines

7 Latest Financial Summary Latest Financial Summary Financial Trend (Yen) (Nikkei 225) 24,000

20,000

16,000

¥11.16 billion gain of negative goodwill 12,000 Operating revenue, Ordinary income by acquiring Takagi Securities Net income (Million Yen） (Million Yen) 90,000 Operating revenue Ordinary income Net Income 18,000 80,000 16,000 70,000 14,000 60,000 12,000 50,000 10,000 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2,000 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FYE FYE FYE FYE FYE FYE FYE Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Recorded positive ordinary income for 32 consecutive quarters

9 Latest Financial Summary Financial Performance in Industry Top 10 by financial performance on 1H FYE Mar. 2019 in the industry

Operating Revenue 1H FYE Mar 2019 Ordinary Income 1H FYE Mar 2019 Net Income 1H FYE Mar 2019 Company Amount Company Amount Company Amount YoY YoY YoY Name (Million Yen) Name (Million Yen) Name (Million Yen) 1 Nomura *1 879,366 -5.5% 1 Daiwa 46,015 -33.3% 1 Daiwa 36,286 -29.3%

2 Daiwa 347,746 3.4% 2 ★ SMBC Nikko 36,245 -13.5% 2 ★ SMBC Nikko 27,925 -3.2%

3 ★ Mizuho 202,418 9.1% 3 ★ MUMSS 28,864 -18.0% 3 ★ Mizuho 21,508 25.5%

4 ★ SMBC Nikko 194,282 6.1% 4 ★ Mizuho 24,206 9.1% 4 ★ MUMSS 15,363 -13.4%

5 ★ MUMSS 185,537 2.2% 5 Nomura *1 14,110 -91.2% 5 Tokai Tokyo 3,060 -82.0%

6 Okasan 36,346 -7.5% 6 Tokai Tokyo 3,985 -51.7% 6 IwaiCosmo 2,283 9.4%

7 Tokai Tokyo 35,842 -10.0% 7 IwaiCosmo 3,199 37.2% 7 Okasan 1,544 13.9%

8 Ichiyoshi 11,582 -6.6% 8 Okasan 3,067 -36.6% 8 Kyokuto 1,322 63.8%

9 IwaiCosmo 10,891 11.0% 9 Ichiyoshi 1,986 -34.6% 9 Ichiyoshi 1,317 -35.3%

10 Marusan 8,261 -5.9% 10 Kyokuto 881 -25.8% 10 Marusan 668 -17.1%

: Bank-affiliated companies *1 US GAAP based Note: Excluding online brokers Tokai Tokyo Financial Holdings prepared the table compiling from publicly disclosed data

10 Latest Financial Summary Negative Factors in 1Q and 2Q in FYE March 2019

US equity Japan equity

Emerging Unrest of Exchangeable market capital market bond

Turnaround delay in Advance investment acquired companies - FinTech - Takagi Sec. - Office relocation - ETERNAL - Orque d’or salon Tokyo - Pinnacle

11 Latest Financial Summary Project Review

Commencement PMI FYE March 2019 Takagi Consolidated since April Received JPY11.1 B JPY388M ordinary loss in Securities 2017 to expand securities negative goodwill as 1H (6 mos.). More business base in Osaka area. extraordinary gain. restructuring in 2H to Restructured organization become profitable in FYE and cut cost to improve P/L. 2020 Eternal Consolidated since Mar. Pursue synergy by Plan to become profitable 2017 to expand insurance collaborating with in 2H business MONEQUE Pinnacle Consolidated since Sep. Plan to initiate business Plan to become profitable 2017 to strengthen M&A succession service for in 2H business regional banks. Money Acquired 20% stake as of Dispatched 1 board director. JPY89M equity method loss Design June 2018 Plan for business alliance to and 60M goodwill in 2Q (3 utilize the robo advisor. mos.). Pursue collaboration possibility. Relocation To relocate as of Jan. 2019 Trading system to be JPY100M/month rent of HQ to strengthen Market Div. upgraded and new salon started as of July 2018. office and open “Orque d’or Salon for high-net-worth in Tokyo Tokyo”.

12 Latest Financial Summary Stock Price Trend in Comparison Among Peers

130 Year-to-date Stock Price Trend (Dec 31, 2017 = 100) Tokai Tokyo 120 Nomura (Reference) PBR among Peers 110 Daiwa Okasan 100 Company PBR (x) Name Dec 29, 2017 Nov 7, 2018 90 90 85 Tokai Tokyo 1.11 0.94 80 81 79 Nomura 0.80 0.63 70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Daiwa 0.90 0.79 10-Year Stock Price Trend 250 (Dec 31, 2007 = 100) Okasan 0.88 0.72

200 Tokai Tokyo Source: Bloomberg 150 Nomura Daiwa 100

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

13 Financial Structure & Business Focus Financial Structure and Business Focus Characteristics of Business and Financial Performance

Group Operating Revenue image including Group Ordinary Income image including the affiliates’ figures on pro-rata basis*1 the affiliates’ figures on pro-rata basis*1, 2

JV6 companies Equity Method Dividend +Ace Profits (JV 6 Income 14% companies 5% FH + other +Ace Subsidiaries 16% ETERNAL 3% [Retail Segment] 3% Retail 41% Takagi Securities Company 34% FH + 6% TTSC other 69% Other Market & Subsidiaries 1% TTSC Products Wealth 10% 26% Management [Non-retail Segment] 4% 33% Next Generation Corporate Corporate Business Sales Finance 3% 4% 2%

* 1 The charts present images of the source of Group * 2 Takagi Securities and ETERNAL are not included in this revenue and income in 1H FYE Mar 2019, which, chart because of their ordinary losses. being different from our consolidated PL, include affiliates’ figures on pro-rata basis.

15 Financial Structure and Business Focus Retail and High-net-worth Business (TTSC) Assets under Custody Breakdown by Wealth Non- face-to- face High General General9.4% High Wealth 14.8% 14.4% 6.4% Wealth 28.0% Wealth 24.3% Middle Middle Wealth 46.5% 32.0% 24.3%

Mar 2013 Sep 2018

Revenue Breakdown by Wealth High Non-face- General Wealth to-face 11.4% 6.5% 2.0% High General Wealth 5.9% Wealth 17.8% 25.9% Middle Middle Wealth 56.1% 41.7% 32.5%

FYE Mar 2013 General :Holding less than 5 million yen Middle :5 million to 30 million yen 1H FYE Mar 2019 Wealth :30 million to 100 million yen High Wealth :Over 100 million yen in assets under custody 16 Financial Structure and Business Focus Retail and High-net-worth (TTSC)

Revenue Breakdown by Business Segment Assets under Custody Breakdown by Business Segment （Billion Yen) （Million Yen) One Stop Channel Retail Sales Wealth Management 2,500 25,000 One Stop Channel 2,000 Retail Sales 1,500 1,000 500 20,000 0 1H 2H 1H 2H 1H 2H 1H FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE 15,000 Mar 2019 （Billion Yen) 600 10,000 Wealth Management 500 400 300 5,000 200 100 0 0 1H 2H 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H 2H 1H FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE FYE Mar 2016 FYE Mar 2017 FYE Mar 2018 FYE Mar Mar 2019 2019

17 Financial Structure and Business Focus Market Division (TTSC) Breakdown of Customer Revenue Flow Trading Revenue by Product Total Other Takagi Securities Other 12,000 Broker's Broker Business JV 10,653

10,000 TTSC 9,265 Foreign Bonds, Structured Bonds, Forex 8,323 8,652 7,590 (Origination, Socondary, Forex) 8,000 6,536 5,831 14,000 Foreign Equities 6,000

4,000 12,000 Japanese Bonds Yen) (Million 2,000

0 10,000 Japanese Equities 1H 2H 1H 2H 1H 2H 1H FYE FYE FYE FYE Mar 2016 Mar 2017 Mar 2018 Mar

8,000 2019 ） Revenue Breakdown by Category 6,000 Total Fund Revenue 13,132

14,000 Position Revenue Million Million Yen

（ Customer Revenue Flow 11,424 11,359 4,000 12,000 10,615 9,607 10,000 8,332 8,110 2,000 8,000

6,000 0 4,000 1H 2H 1H 2H 1H 2H 1H Yen) (Million 2,000 -2,000 FYE FYE FYE FYE Mar 2016 Mar 2017 Mar 2018 Mar 0 1H 2H 1H 2H 1H 2H 1H 2019 -2,000 FYE FYE FYE FYE Mar 2016 Mar 2017 Mar 2018 Mar 2019 18 Financial Structure and Business Focus Corporate Sales / Corporate Finance (TTSC) Revenue of Corporate Sales & Uridashi Managers by Number of Deals (MDBs: World Bank, IFC, IDB, ADB, etc.) Total Straight Bond Underwriting Corporate Finance Unit 2018 2018 (Million Yen) Rank Manager USDm Deals Rank Company JPYm Deals 1 Tokai Tokyo 1,312 148 1 Mizuho 2,086,701 347 4,000 Other Fees & Commissions 2 Okasan 984 114 2 Nomura 1,826,352 353 3 MUMSS 5,641 88 3 SMBC Nikko 1,642,756 343 3,500 Underwriting 4 SBI 578 80 4 Daiwa 1,623,921 339 5 Nomura 3,013 45 5 MUMSS 1,279,031 253 3,000 Corporate Sales 6 Daiwa 892 37 6 Tokai Tokyo 140,620 78 7 Chugin 263 34 7 Shinkin 109,900 54 2,500 8 Mizuho 1,772 33 8 Goldman Sachs 75,700 32 9 SMBC Nikko 2,121 29 9 Okasan 55,600 70 2,000 10 Aozora 253 24 10 SBI 50,000 16 IPO Underwriting 1,500 2018 Rank Company JPYm Deals 1,000 1 Nomura 78,752 15 2 Daiwa 39,131 14 500 3 MUMSS 30,888 9 4 Mizuho 30,183 34 0 5 SMBC Nikko 20,931 32 1H 2H 1H 2H 1H 2H 1H 2H 1H 6 SBI 12,035 43 7 Tokai Tokyo 2,562 12 FYE FYE FYE FYE FYE 8 Okasan 1,014 18 Mar Mar Mar Mar Mar 9 Monex 630 19 2015 2016 2017 2018 2019 10 Ichiyoshi 467 17

Sources : Bloomberg, Thomson Reuters, Capital Eye News 19 Financial Structure and Business Focus Cost Analysis (Consolidated)

40,000 Total 35,000 33,562 Operational expenses (Variable) 31,909 31,647 30,644 System expenses (Variable) 29,350 30,000 27,789 28,117 Trading-related expenses (Variable -JV) 26,951 27,588 26,044 26,111

Trading-related expenses (Variable-others) Variable cost Variable 25,000 Personnel expenses (Variable)

Other 20,000

Depreciation (Million (Million Yen) 15,000 Trading-related expenses (Fixed) Occupancy and rental

10,000 cost Fixed Operational expenses (Fixed)

System expenses (Fixed)

5,000 Personnel expenses (Fixed)

Fixed cost 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H FYE FYE FYE FYE FYE FYE Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019

Personnel expenses increased due to consolidation of group companies

20 Capital Policy Capital Policy Indicator per Share in Comparison with Peers Dividend Information of TTFH Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Sep 2018 Shareholders' Equity (million yen) 140,462 154,633 153,089 155,312 172,629 168,743 Treasury Stock 3,835 3,639 6,390 7,572 6,188 6,187 Dividend per Share (yen) 32.00 34.00 28.00 26.00 38.00 12.00 Dividend Payout Ratio 36.5 % 48.9 % 59.7 % 56.9 % 39.1 % 101.3 % DOE (Dividend On Equity ratio) 6.5 % 6.1 % 4.8 % 4.4 % 6.0 % 3.6 %

Indicator per Share in Comparison with Peers

EPS (Yen) Tokai Tokyo Nomura Daiwa 150 87.7 97.3 99.6 87.1 100 69.5 68.3 61.5 46.9 45.7 57.6 61.7 36.5 67.3 63.1 66.9 44.9 50 23.7 0 (50) -3.5 ROE (%) 30 17.7 20 15.5 17.0 12.6 12.8 8.1 7.8 8.9 8.6 8.7 7.9 9.5 8.4 8.8 10 3.6 4.9 5.6 0 -0.4 Dividend Yield (%) 6 5.2 5 4.5 4.5 3.7 3.8 4.2 3.8 4.1 3.5 4 3.7 3.7 3.3 3.2 3 2.6 2.7 2.6 2.9 2 1.1 1 0

FYE Mar 2014 FYE Mar 2015 FYE Mar 2016 FYEMar 2017 FYE Mar 2018 2Q FYE Mar 2019

* EPS and ROE are annualized 22 Capital Policy Capital Policy & Available Capital

Capital Policy Available Capital

Shareholder return (Billion Yen) - Dividend - Share buyback Available Capital - Benefit program 57

Reserved capital for future growth Capital in a Broad M&A / Capital investment Sense (Bank, broker, FinTech) 214 Uses of Capital 156 Business expansion (Market div., high-net-worth, IFA)

Investment in IT/AI 0

23 Progress of Strategic Project Progress of Strategic Project Alliance with Regional Banks

Assets under Custody - from JVs (6 Entities) Income Contribution from JV Affiliates 1,600 1,499 1,450 Income and Other Benefits Realized from Transactions with JVs 1,400 9,000 90 1,244 Gain on Investments in Partnership 8,000 79 80 1,200 Proportion to Consolidated Ordinary Income 1,047 7,000 998 70 1,000 884 6,000 780 60 800 5,000 5,603

(BillionYen) 642 3,996 50 4,000 3,031 540 (Million Yen) 45

600 (%) 40 39 3,464 38 3,000 3,783 371 400 2,434 32 37 23 30 245 2,000 2,557 1,636 22 200 1,325 2,570 2,568 2,317 20 1,000 1,041 1,431 12 1,410 17 1,073 5 465 526 636 611 0 0 389 10 -554 -1,000 0 0 FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE 1H Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar FYE 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mar 2019

25 Progress of Strategic Project Alliance with Regional Banks

Top 20 Regional Banks (by Total Deposits) (As of March 31, 2018) Bank Operation Bank Name Deposits JV Name started (Trillion Yen) 1 Concordia Financial Group* 15.4 Hamagin Tokai Tokyo Sec Nov-2008 2 ★ Mebuki Financial Group 13.9 3 ★ Fukuoka Financial Group 13.7 4 ★ Chiba Bank 12.0 5 Hokuhoku Financial Group* 11.0 Hokuhoku Tokai Tokyo Sec Jan-2017 6 ★ Shizuoka Bank 9.5 7 Yamaguchi Financial Group* 8.7 YM Securities Sec Oct-2007 8 ★ Kyushu Financial Group 8.3 9 Nishi-Nippon Financial Holdings* 7.8 Nishi-Nippon City Tokai Tokyo Sec May-2010 10 ★ The 77 Bank 7.4 ★ 11 Hiroshima Bank 7.1 Total Bank Deposits 12 ★ Kyoto Bank 6.8 13 ★ Gunma Bank 6.6 JPY55.8 Trillion 14 ★ The Hachijuni Bank 6.5 15 ★ Chugoku Bank 6.4 16 The Juroku Bank* 5.4 TBA 17 ★ The Toho Bank 5.2 18 ★ Iyo Bank 5.0 19 Ogaki Kyoritsu Bank 4.9 20 Senshu Ikeda Holdings* 4.9 Senshu Ikeda Tokai Tokyo Sec Sep-2013

- Tochigi Bank* 2.6 Utsunomiya Sec Apr-2017 ★ : Banks having subsidiary securities companies by their own * : Denotes Tokai Tokyo Financial Holdings’ alliance partners

26 Progress of Management Plan “New Age’s Flag Bearer 5” Progress of Management Plan “New Age’s Flag Bearer 5” The Overall Picture

“New Age’s Flag Bearer 5”

Further Strengthen Operating Base and Achieve Growth Pursuit Strategic Themes

Orque d’or Growth by M&A Humanity Organization MONEQUE Matured Asset management

Unique Pension and insurance development of service Defense Professionality retail strategy Mechanism Banking service

Market & Overseas market expansion Investment Great Platform Bank Expansion to Metropolis

Productivity Revolution

28 Progress of Management Plan “New Age’s Flag Bearer 5” Wealth Management Business

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

Entrance, lounge, 500 Assets under Custory (Tokyo) 3,000 dining hall, reception room, Assets under Custory (Nagoya) seminar room, 450 Number of Membership multipurpose hall, Japanese style Tatami room, etc. 2,049 2,500 400 (including 623 from Tokyo) 350 2,000 Tokyo 300 74 In April 2018, services commenced for Orque d’or members in Tokyo. 1,290 1,361 Orque d’or Salon Tokyo will open in Nihonbashi Takashimaya Mitsui 250 1,500 Building in the spring of 2019 1,171

(BillionYen) Entrance, lounge, restaurant, reception room, seminar room, 200 1,024 multipurpose hall, rooftop garden, etc. 1,000 150 679 267 265 246 100 203 178 500 50 105

0 0 Mar Sep Mar Sep Mar Sep ・・・ Mar 2016 2016 2017 2017 2018 2018 2021 (Interior CG Perspective)

29 Progress of Management Plan “New Age’s Flag Bearer 5” Plan for Next Generation

FinTech (Operation/ Internet (Investment) •SNS Marketing) •Investment Trust [TORANOTEC] Outlets (“Fund Labo”) TT Online Spare change investment •Digital Marketing FinTech Low-cost •Big Data Utilization Securities Settlement •Company IR Platform Point Investment Point Settlement [MONEY DESIGN] Robo-advisor “THEO”

Point Regional Bank IFA Network Infrastructure Network (mileage)

Internet Personal Mobile Takagi [One Tap BUY] Intermediary Lending Carrier IFA Small amount investment

Joint Insurance Insurance Digital Retailer MONEQUE Plus Agency Marketing

Life plan FinTech Regional Other Insurance Collaboration Revitalization Industry Plus

30 Progress of Management Plan “New Age’s Flag Bearer 5” Strengthening Market Division Enhancement of business

infrastructure [Major achievements in 1Q-2Q] In-house origination of Strengthen structured bonds: foreign equity 10%

Products Global Equity business: Commenced MS warrant and Trading CB

Equity Recruitment: business 13 professionals joined Targeting Revenue JPY 3 Billion/Month Position size: enlarged JGB Electronic Transactions In-house JGB: Electronic trading (front) origination system introduced Upgrade of structured bonds Improvement of infrastructure: trading system Financial accounting equipped & reinforce staff Product Diversification

31 Progress of Management Plan “New Age’s Flag Bearer 5” Enhance Great Platform Scheme

《Great Platform》《To be added to YM Sec. Great Platform》 Brokerage Joint Hamagin TT Sec. Insurance securities Nishi-Nippon City TT Sec. Senshu Ikeda TT Sec. Operation with Asset regional Hokuhoku TT Sec. management bank Tochigin TT Sec. Information High-net- (Juroku Bank) worth

Education Business Platform alliances succession Securities firm 58 entities M&A Investment bank as of Sep. 2018 FinTech (IT/AI) Next Research Regional bank IFA generation

32 Progress of Management Plan “New Age’s Flag Bearer 5” Comprehensive Business Alliance with Juroku Bank Expand synergetic collaboration with regional banks to make a good use of alliance between regional banks and securities firm.

Tokai Tokyo FG Juroku Bank

Business succession M&A Regional fund

Product Joint Securities FinTech development (JV)

Fund operation High-net-worth

33 Progress of Management Plan “New Age’s Flag Bearer 5” Productivity and HR Revolution

Productivity revolution Personnel revolution

RPA Paperless

Professionality Humanity Big data

Reorganization of admi. and branch

34 Progress of Management Plan “New Age’s Flag Bearer 5” Key Factors

Market Div. targeting JPY3B/month

Great Platform Segmented retail business - JV (Joint securities) - High-net-worth - Mid-size brokers - Matured - IFA - Mass, MONEQUE

Productivity Revolution Personnel system revolution

Targeting JPY30B level of ordinary income in the future

Market Div. Retail Others (IB, affiliates, etc.) JPY15~20B JPY5~7.5B JPY5~10B

35 Progress of Management Plan “New Age’s Flag Bearer 5” New Business Model

Past Present Near Future

IFA Financial Instruments Intermediary FP CPA Mobile Retailer Others Carrier Tokai Tokyo Sec. Insurance Tokai Tokyo Sec. Agency

Retail

Broker High-net-worth Matured Tokai Tokyo Sec. TT Online Retail (FinTech) (Matured Market) Equity Market & Investment New Generation Investment Trust Corporate Bankzing High-net-worth Matured Digital Payment

Market & Investment Small Investment Digital Payment Corporate Banking Robo-advisor Small Investment JV SNS Robo-advisor Tochigin YM Hamagin SNS

Nishi-Nippon Hokuhoku Sensyu Ikeda JV Tochigin YM Hamagin Juroku

Medium Securities Companies Nishi-Nippon Hokuhoku Senshu Ikeda Others

Medium Securities Companies

36 MEMO

37 MEMO

38 Inquiries to be directed to:

• Corporate Communications Department • Phone: +81-3-3517-8618 FAX: +81-3-3517-8314 • E-mail: [email protected]

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.