日本取引所グループ（8697） – Notice of Revision to Earnings Forecast and Dividend Forecast

[Translation] March 22, 2022 Company Name: Japan Exchange Group, Inc. Name of Representative: Kiyota Akira, Director & Representative Executive Officer, Group CEO (Code No.: 8697, TSE 1st Section) Inquiries: Corporate Communications (Tel: +81-3-3666-1361) Notice of Revision to Earnings Forecast and Dividend Forecast We hereby announce that the consolidated earnings forecast and year-end dividend forecast for the fiscal year ending March 31, 2022 released on October 27, 2021 have been revised as follows. 1. Revised Consolidated Earnings Forecast for Fiscal Year from April 1, 2021 to March 31, 2022 (Figures indicated in millions of yen, unless stated otherwise) Operating revenue Operating income Income before income tax Net income Net income attributable to owners of the parent company Basic earnings per share (yen) Previous forecast 131,000 67,500 67,500 46,700 46,000 86.88 Revised forecast 135,500 73,500 73,500 50,700 50,000 94.43 Change 4,500 6,000 6,000 4,000 4,000 Change <%> 3.4% 8.9% 8.9% 8.6% 8.7% (Reference) Consolidated results for the fiscal year ended March 31, 2021 133,343 74,565 74,732 52,017 51,389 96.00 2. Reason for Revision In light of recent market conditions, we have revised the average daily trading values and volumes, which were the assumptions used in the consolidated earnings forecast in the “Notice of Revision to Earnings Forecast and Dividend Forecast” disclosed on October 27, 2021 (hereinafter “previously disclosed material”). Specifically, the consolidated earnings forecast was revised based on the revised assumptions of average daily trading values and volumes (changes from previously disclosed material indicated in parentheses) of ¥3.75 trillion for stocks*1 (up ¥250 billion), 34,000 contracts for 10-year JGB futures transactions (up 4,000 contracts), 96,000 contracts for TOPIX futures transactions (down 1,000 contracts), 178,000 contracts for Nikkei 225 futures transactions*2 (up 8,000 contracts ), and ¥23.5 billion for Nikkei 225 options transactions*3 (up ¥ 0.5 billion). *1 The trading value of stocks listed on the TSE 1st and 2nd Sections, Mothers, JASDAQ, and TOKYO PRO Market, and that of ETFs, ETNs, REITs, etc. (includes auction and off-auction trading) *2 Includes Nikkei 225 mini contract volumes converted into large-sized contracts *3 Excludes weekly options 3. Revised Dividend Forecast We adopt a dividend policy with a target payout ratio of about 60% tied to business performance while giving 1 per share. 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 the group to pursue investment opportunities to raise the competitiveness of its markets as they arise. In line with the abovementioned policy, the forecast for the year-end ordinary dividend with the record date of March 31, 2022 has been revised to ¥31 per share due to an expected increase in net income attributable to owners of the parent company from the revision to the consolidated earnings forecast. In addition, the consolidated financial results for this fiscal year are expected to exceed the financial targets set out in the 3rd Medium-Term Management Plan (FY2019-FY2021) (i.e. operating revenue: JPY 130 billion; net income attributable to owners of the parent company: JPY 50 billion; and ROE 15.0% or higher) for the second consecutive fiscal year. Also, with the support of our shareholders, we have achieved steady progress with the core strategies set forth in the 3rd Medium-Term Management Plan, such as TSE’s cash equity market restructuring. In order to express its gratitude for this, the Company has decided to pay a special dividend of ¥15 As a result, the forecast for the year-end dividend per share, with the record date of March 31, 2022, will be ¥46 (ordinary dividend of ¥31 plus special dividend of ¥15). The dividend payment will be made after it is formally decided at the Board of Directors meeting to be held in May 2022. Second quarter Year-end Annual Dividend per share Previous forecast Revised forecast Actual ¥26.00 (Ordinary Dividend ¥31.00) (Special Dividend ¥15.00) ¥72.00 (Ordinary Dividend ¥57.00) (Special Dividend ¥15.00) ¥53.00 ¥27.00 ¥46.00 ¥42.00 For the fiscal year ended March 31, 2021 ¥26.00 (Ordinary Dividend ¥32.00) (Special Dividend ¥10.00) ¥68.00 (Ordinary Dividend ¥58.00) (Special Dividend ¥10.00) Note on Forward-looking Statements This material contains earnings forecasts, projections, and other forward-looking statements, which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors may cause actual results to be materially different from those expressed in these forward-looking statements. DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Japan Exchange Group, Inc., its subsidiaries, and/or its affiliates shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation. 2