Securing future revenue opportunities by increasing customer margin deposits

「Customer margin deposits 85,816 87,111 88,359 91,348 93,175 94,488 (Unit: ¥ millions)」

「As a result, FX customer margin deposits for the current consolidated fiscal year totaled ¥88,360 million.」

「To stimulate customers' FX trading, the Group narrowed the TRY/JPY spread in April 2025. It also worked to implement various measures to increase customers' trading incentives, including expanding attractive food campaigns for existing customers by adding a freezer as a featured prize alongside the usual food products, and offering a cashback campaign for new account openings. As a result, at the end of the current interim consolidated fiscal period, the number of customer accounts was 442,797, down 20.3% from the end of the previous consolidated fiscal period, while FX customer margin deposits totaled ¥81,169 million, up 5.1% from the end of the previous consolidated fiscal period. FX trading volume for the current interim consolidated fiscal period was ¥5.8458 trillion in currency units, up 8.0% year on year.」

「FX customer margin deposits 78,278,242 77,207,589 98.6」

「As a result, as of the end of the interim consolidated accounting period, the number of customer accounts reached 546,203, up 1.8% from the end of the previous consolidated fiscal year, and foreign exchange margin deposits received were ¥74,772 million, down 4.5%. Foreign exchange trading volume for the interim consolidated accounting period was ¥5.4106 trillion in currency units, up 19.8% year on year.」

「FX customer margin deposits 72,976,247 78,278,242 107.3」

「Against this backdrop, from June 2023 the Group began offering Czech koruna/yen, Israeli shekel/yen and Thai baht/yen currency pairs through LION FX. Anticipating an increase in trading opportunities in line with rising volatility, the Group began offering these high-profile currency pairs. The Group also focused on improving its various trading tools to meet customer requests and accommodate a range of trading environments, including by introducing its official automated trading tool and adding a feature that enables users to settle trades with a simple swipe, taking advantage of smartphone operability. In addition, anticipating further growth in FX trading as a result of the advertising impact of billboard advertising, which has continued and expanded since 2022, the Group implemented various measures to increase customers' trading incentives, including narrowing the AUD/JPY spread, enhancing the cashback campaign for new account openings, and offering attractive food campaigns. As a result, at the end of the second quarter of the current consolidated fiscal year, the number of customer accounts was 528,314, down 9.7% from the end of the previous consolidated fiscal period, while FX customer margin deposits totaled ¥78,557 million, up 7.6% from the end of the previous consolidated fiscal period. FX trading volume for the cumulative second quarter was ¥4.5174 trillion in currency units, down 15.1% year on year.」

「Against this backdrop, anticipating an increase in trading opportunities accompanying higher volatility, the Group began offering the Czech koruna/yen, Israeli shekel/yen and Thai baht/yen currency pairs through LION FX in June 2023, increasing the number of currency pairs to 54. It also worked to implement customer requests, including adding a function to LION Chart Plus+ that automatically places orders based on technical trading signals, and conducted a wide variety of campaigns every month to increase customers' willingness to trade. In addition, it installed billboard advertisements at Namba Station on the Nankai Electric Railway and Yodoyabashi Station on the Keihan Railway to raise corporate awareness and acquire new customers. As a result, the number of customer accounts at the end of the first quarter of the current consolidated fiscal year reached 591,030, up 1.0% from the end of the previous consolidated fiscal year, and foreign exchange customer margin deposits were ¥75,649.421 million, up 3.7%. Foreign exchange trading volume during the cumulative first quarter was 2.0826 trillion currency units, down 24.2% year on year.」

「FX customer margin deposits 67,639,237 72,976,247 107.9」

「As a result, as of the end of the third quarter of the current consolidated fiscal year, the number of customer accounts was 579,242, up 3.0% from the end of the previous consolidated fiscal year, and foreign exchange margin deposits received were ¥71,023 million, up 5.0%. Foreign exchange trading volume for the first three quarters was ¥7.7334 trillion in currency units, up 47.6% year on year and at a record high.」

「Against this backdrop, the Group began offering the Chinese yuan/yen currency pair through LION FX in April 2022, increasing the number of currency pairs to 51. It also worked to expand the trading environment by upgrading LION Chart Plus+ to enable chart analysis comparable to that available on a PC even on a small smartphone screen, and by adding functions to LION Web, a browser-based trading tool that does not require app installation. In addition, anticipating an increase in trading opportunities due to the weaker yen, it actively disseminated information by email and social media, including introductions to convenient app functions upgraded to date and support functions for beginners. As a result, the number of customer accounts at the end of the second quarter of the current consolidated fiscal year was 573,796, up 2.1% from the end of the previous consolidated fiscal year, foreign exchange customer margin deposits were ¥73,471.630 million, up 8.6%, and foreign exchange trading volume during the cumulative second quarter was 5.3226 trillion currency units, up 70.2% year on year, reaching a record high.」

「As a result, as of the end of the first quarter of the current consolidated fiscal year, the number of customer accounts reached 568,044, up 1.0% from the end of the previous consolidated fiscal year, and foreign exchange margin deposits received were ¥71,511 million, up 5.7%. Foreign exchange trading volume for the first three quarters was ¥2.7458 trillion in currency units, up 68.8% year on year.」

「Foreign exchange deposits received 65,395,629 67,639,237 103.4」

「As a result, as of the end of the third quarter of the current consolidated fiscal year, the number of customer accounts was 555,715, up 3.2% from the end of the previous consolidated fiscal year, and foreign exchange margin deposits received were ¥66,875 million, up 2.3%. Foreign exchange trading volume for the first three quarters was ¥5.2384 trillion in currency units, up 36.4% year on year.」

「Against this backdrop, as customers' FX trading opportunities increased due to the expansion and prolongation of teleworking and requests to refrain from going out, the Group focused on upgrading its trading tools to provide an environment that could flexibly meet the diverse needs of a broad range of customers. In addition to changing and adding display methods and functions, it made a series of detailed upgrades, including the display speed for news tickers, the number of alert sounds and settings for font colors and sizes, enabling each customer, from FX beginners to advanced users, to customize the trading environment to suit their individual needs. It also worked to upgrade its smartphone app so that customers could trade comfortably even when unable to use a PC. In addition, it reviewed its advertising methods and conducted a wide variety of campaigns every month to increase customers' willingness to trade despite low volatility. As a result, the number of customer accounts at the end of the second quarter of the current consolidated fiscal year was 550,109, up 2.2% from the end of the previous consolidated fiscal year, customer margin deposits were ¥67,215.183 million, up 2.8%, and foreign exchange trading volume during the cumulative second quarter was 3.1278 trillion currency units, up 26.9% year on year.」

「However, the decline in consumer sentiment and concerns about the outlook associated with the spread of COVID-19 resulted in customer margin deposits of ¥65,158,946 thousand at the end of the first quarter of the current consolidated accounting period, down 0.4%. In addition, trading in currencies with low revenue per transaction, such as the US dollar/Japanese yen, increased, resulting in operating revenue of ¥1,890,429 thousand and operating profit of ¥525,915 thousand for the cumulative consolidated period of the first quarter, down 33.3% year on year.」

「As a result, foreign exchange trading margin deposits for the consolidated fiscal year amounted to ¥65,395,629 thousand.」

「Against this backdrop, the Group anticipated an increase in FX trading opportunities as the use of PCs and smartphones increased due to requests to refrain from going out and the expansion and prolongation of teleworking, and narrowed spreads on popular currency pairs and reviewed its advertising methods. It also worked to increase customers' willingness to trade by responding quickly to their requests regarding trading tools and implementing the requested changes. As a result, foreign exchange trading volume during the cumulative third quarter of the current consolidated fiscal year was 3.841 trillion currency units, up 60.3% year on year. The number of customer accounts at the end of the third quarter of the current consolidated fiscal year was 532,837, up 4.0% from the end of the previous consolidated fiscal year, while customer margin deposits were ¥65,017.940 million, up 6.2%.」

「Against this backdrop, our group expected FX trading opportunities to increase as people spent more time using PCs and smartphones due to the prolonged request to refrain from going out and the expansion of telework, among other factors. We worked to improve the trading environment by narrowing spreads on multiple currency pairs and upgrading the trading system. In addition, to prevent trading from declining even in a low-volatility environment, we worked to increase customers' willingness to trade by running attractive campaigns and expanding the regions in which small-group seminars were held for customers whose FX trading results had been unsatisfactory. As a result, foreign exchange trading volume for the cumulative consolidated period of the second quarter was ¥2,465.0 billion currency units, up 49.2% year on year. The number of customer accounts at the end of the second quarter of the current consolidated accounting period was 525,961, up 2.7% from the end of the previous consolidated accounting period, while customer margin deposits were ¥63,786,667 thousand, up 4.2%.」

「In addition to continuing to review advertising and promotional methods and working to implement customer requests for trading tools and other services more quickly, foreign exchange trading volume for the cumulative consolidated period of the first quarter was 1,240.4 billion currency units, up 67.6% year on year. The number of customer accounts at the end of the first quarter of the current consolidated accounting period was 520,206, up 1.6% from the end of the previous consolidated accounting period, while customer margin deposits were ¥60,813,643 thousand, down 0.7%.」

「The company also worked to narrow spreads on popular currency pairs and review advertising and promotional methods in order to increase the customer margin deposits needed when volatility rises. Foreign exchange trading margin deposits amounted to ¥61,234,521 thousand.」

「Against this backdrop, our group believed that it was time to continue increasing the customer margin deposits needed to generate revenue when volatility rises in the future, as in the previous quarter, and worked to review its advertising and promotional methods. As a result, the number of customer accounts at the end of the third quarter of the current consolidated fiscal year was 503,855, up 4.4% from the end of the previous consolidated accounting period, while customer margin deposits were ¥59,532,467 thousand, up 14.9%.」

「Against this backdrop, the Group determined that it was time to increase customer margin deposits in preparation for generating revenue when volatility rises in the future, and narrowed spreads on popular currency pairs and reviewed its advertising methods.」