4Q FY2014Earnings Announcement

April 28, 2015Daiwa Securities Group Inc.

This presentation may contain forward-looking statements about the Daiwa Securities Group. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies, contain projections of results of operations or of financial conditions or state other “forward-looking”information. These statements are based on currently available information and represent the beliefs of the management of the Daiwa Securities Group. These statements are subject to numerous risks and uncertainties that could cause the Daiwa Securities Group’s actual results, performance, achievements or financial condition to differ materially from those described or implied in the forward-looking statements. The Daiwa Securities Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatile and sudden movements in the international securities markets, foreign exchange and global economic situations affecting the Daiwa Securities Group.

2

Consolidated ResultsSummary 3～6Breakdown of SG&A 7～8Balance Sheet 9Financial Management 10Segment Information 11～17DIR Group, Daiwa Next Bank and Overseas Operation 18

Reference 19～32

Table of Contents

3

Consolidated

Highlights (FY2014 Full Year)

■ Achieved the target ordinary income for the final year (FY2014) of the previous Medium-Term Management Plan

Consolidated ordinary income was Y184.5bil, achieving the target ordinary income of Y120bil as set out in the previous Medium-Term Management Plan.Net income for 4Q FY2014 was Y38.5bil (+0.1% QoQ), marking an increase for four consecutive quarters.

■ Continuous efforts to expand stable revenues proved fruitfulDaiwa Asset Management’s AUM of mutual funds reached Y11tri. The Asset Management Division posted record-high net operating revenues (Y55.1 bil) and ordinary income (Y32.1 bil).As for Daiwa Next Bank, the number of accounts reached one million, and the deposit balance surpassed Y3tri, contributing to diversify the source of stable revenues.

■ FY2014 dividend per share: 30 yen (interim:14 yen, year-end: 16 yen)Dividend payout ratio for year-end dividend will be 35.5%. Annual dividend payout ratio will be 34.5%, which is higher than the FY2013 annual dividend payout ratio of 34.1%.

4

57.2

35.543.4

33.2 34.3 37.0 38.5 38.5

0

20

40

60

80

1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 3Q/14 4Q/14

65.0

43.050.5

38.4 39.744.2

51.0 49.5

0

20

40

60

80

1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 3Q/14 4Q/14

155.2

127.1138.3

121.1 122.4 130.1140.2 139.3

0

60

120

180

1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 3Q/14 4Q/14

Consolidated

Summary (4Q / FY2014)

4Q FY2014 Net operating revenues: Y139.3bil (-0.7% QoQ)In the Wholesale Division, net operating revenues for Global Markets was Y41.1bil (+17.0% QoQ) due to an increase in net trading income.The Asset Management Division posted net operating revenues of 14.3 bil (+1.6% QoQ) with the expansion of AUM, mainly through mutual funds.

4Q FY2014 Ordinary income: Y49.5bil (-2.9% QoQ)SG&A was Y92.9 bil (+1.7% QoQ), resulting in the decrease of ordinary income.

4Q FY2014 Net income: Y38.5bil (+0.1% QoQ)Annualized ROE was 12.7% (-0.5 pts. QoQ), and BPS was Y725.27 (+Y24.42 QoQ)

Net operating revenues Ordinary income Net income（Y bil） （Y bil） （Y bil）

5

Consolidated

Financial Summary

3Q 4Q

Operating revenues 179,583 175,454 -2.3% 642,829 659,396 2.6%

Net operating revenues 140,248 139,316 -0.7% 541,951 532,220 -1.8%

SG&A 91,408 92,918 1.7% 357,358 361,380 1.1%

Ordinary income 51,056 49,578 -2.9% 197,045 184,578 -6.3%

Net income 38,502 38,522 0.1% 169,457 148,490 -12.4%

Total assets 23,583,808 23,001,585 19,480,863 23,001,585

Net assets 1,392,698 1,434,680 1,253,462 1,434,680

Shareholders' equity* 1,196,309 1,238,657 1,078,574 1,238,657

EPS（Y） 22.57 22.56 99.63 87.07

BPS（Y） 700.85 725.27 633.53 725.27

ROE（Annualized） 13.2% 12.7% 17.0% 12.8%

（Y m il）% Change

vs3Q/FY14

% Changevs

FY13

FY2014FY2013 FY2014

* Shareholders’ equity = owners’ equity + accumulated other comprehensive incomeFY2014 Dividend

FY14 Proposed Dividend per Share: 30 yen（including 14 yen interim dividend）

6

Net operating revenues ： Y139.3bil（-0.7% QoQ）

Commission received remained flat at Y75.4 bil (-0.8% QoQ).

・Brokerage commission* was Y19.2 bil(-3.7% QoQ) due to a decrease in the value of stock trading.

・Investment advisory and account management fee* increased to Y4.2 bil(+31.5% QoQ) as the AUM of wrap accounts expanded.

・M&A commission* rose to Y3.9 bil(+52.2% QoQ) with the expansion of revenues from overseas operations.

Net trading income increased to Y41.8 bil (+7.8% QoQ).

Ordinary income ： Y49.5bil（-2.9% QoQ）

Net income ： Y38.5bil（+0.1% QoQ）

Consolidated

4Q 1Q 2Q 3Q 4Q

147,398 148,701 155,656 179,583 175,454 -2.3% 642,829 659,396 2.6%

Com m ision received 65,984 68,686 70,954 76,029 75,445 -0.8% 301,937 291,115 -3.6%

Net trading incom e 35,012 37,579 39,016 38,806 41,817 7.8% 156,499 157,220 0.5%

Net gain/loss on private equityand other securities 3,002 1,916 1,543 3,384 570 -83.1% 17,454 7,415 -57.5%

Financial revenue 24,968 26,578 29,789 34,612 34,954 1.0% 107,974 125,934 16.6%

Other operating revenue 18,430 13,940 14,351 26,750 22,667 -15.3% 58,963 77,710 31.8%

14,346 16,530 15,381 27,660 20,497 -25.9% 60,333 80,070 32.7%

11,884 9,680 10,110 11,674 15,640 34.0% 40,545 47,105 16.2%

121,168 122,490 130,163 140,248 139,316 -0.7% 541,951 532,220 -1.8%

87,255 88,164 88,889 91,408 92,918 1.7% 357,358 361,380 1.1%

33,912 34,326 41,274 48,840 46,398 -5.0% 184,593 170,839 -7.5%

4,510 5,378 2,964 2,215 3,179 43.5% 12,452 13,738 10.3%

38,423 39,705 44,239 51,056 49,578 -2.9% 197,045 184,578 -6.3%

-1,304 23 717 -3,666 264 - -1,466 -2,662 -

37,118 39,728 44,956 47,389 49,842 5.2% 195,579 181,916 -7.0%

3,037 4,286 6,756 7,463 8,937 19.7% 17,670 27,444 55.3%

33,215 34,380 37,085 38,502 38,522 0.1% 169,457 148,490 -12.4%Net incom e/loss

Financial expenses

Other operating expenses

Net Operating revenues

SG&A

　Extraordinary incom e/loss

Incom e/loss before incom e taxes

% Changevs

3Q/FY14

% Changevs

FY13

FY2013 FY2014FY2013 FY2014

Total incom e taxes

（Y mil）

Ordinary incom e/loss

　Non-operating incom e/loss

Operating incom e/loss

Operating revenues

P/L Summary

* Composition of total commission received (See p.20)

7

4Q 1Q 2Q 3Q 4Q

SG&A 87,255 88,164 88,889 91,408 92,918 1.7% 357,358 361,380 1.1%

17,747 17,870 18,569 18,762 18,473 -1.5% 74,360 73,676 -0.9%

43,785 43,618 44,157 46,061 47,935 4.1% 177,049 181,772 2.7%

9,256 9,212 9,169 9,076 9,550 5.2% 36,260 37,009 2.1%

Office cost 6,036 6,332 6,104 6,485 6,521 0.6% 24,704 25,444 3.0%

Depreciation 6,120 6,030 6,140 6,141 5,772 -6.0% 26,551 24,084 -9.3%

Taxes and dues 1,461 1,883 1,738 1,808 1,556 -13.9% 6,603 6,987 5.8%

Other 2,848 3,215 3,009 3,073 3,107 1.1% 11,829 12,405 4.9%

Real estateexpenses

（ Y m il）%

Changevs

3Q/FY14

FY2013 FY2014

Personnelexpenses

Trading re latedexpenses

FY2013 FY2014% Change

vsFY13

SG&A ： Y92.9bil

(+1.7% QoQ)

Trading related expenses were Y18.4 bil (-1.5% QoQ), and office cost was Y6.5 bil(+0.6% QoQ). Both items remained almost flat compared to the previous quarter.

Personnel expenses rose to Y47.9 bil (+4.1% QoQ) mainly due to the rise in bonus, which is linked to profit.

Real estate expenses increased to Y9.5 bil(+5.2% QoQ), mainly due to an increase in IT related equipments.

As the depreciation of a large-scale software ended in the previous quarter, office cost decreased to Y5.7 bil(-6.0% QoQ) .

Consolidated

Breakdown of SG&A

8

53.1 51.4 51.9 51.7 52.4 52.5 53.3 53.9

39.735.5 38.1 35.5 35.7 36.3 38.0 38.9

90.187.2 88.1 88.8

91.4

86.9

92.992.9

0

20

40

60

80

100

1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 3Q/14 4Q/14

1Q 2Q 3Q 4Q 1Q-4Q 1Q 2Q 3Q 4Q 1Q-4Q

92.9 86.9 90.1 87.2 357.3 88.1 88.8 91.4 92.9 361.3

39.7 35.5 38.1 35.5 149.0 35.7 36.3 38.0 38.9 149.0

19.0 18.4 19.1 17.7 74.3 17.8 18.5 18.7 18.4 73.6

Advertis ingexpenses 1.2 2.6 2.4 1.9 8.2 1.7 1.7 2.0 2.0 7.5

15.3 12.0 13.6 12.7 53.8 12.1 12.3 13.6 14.6 52.8

2.0 2.0 2.2 2.0 8.3 2.2 2.1 2.3 2.2 9.0

53.1 51.4 51.9 51.7 208.3 52.4 52.5 53.3 53.9 212.3

28.7 27.7 28.1 28.6 113.2 28.8 29.2 29.7 30.6 118.5

9.0 8.8 9.1 9.2 36.2 9.2 9.1 9.0 9.5 37.0

7.0 6.8 6.5 6.1 26.5 6.0 6.1 6.1 5.7 24.0

5.8 6.1 5.9 5.7 23.6 6.0 5.8 6.1 6.2 24.2

2.0 1.4 1.6 1.4 6.6 1.8 1.7 1.8 1.5 6.9

Trading re latedexpenses

FY2013（ Y bil）

Total SG&A

FY2014

PersonnelexpensesReal estateexpenses

Depreciation

Office expenses

Taxes and dues

Fixed costs

Bonus

Variable costs

Overtime, part-time

Consolidated

Cost Structure（Y bil）

Variable costsVariable costs

Fixed costsFixed costs

9

Total assets： Y23.0tri

Net assets： Y1.43tri

Shareholders’ equity** : Y1.23tri

89.8% of total assets have high liquidity*.

*Cash and deposits + Short-term investment securities + Trading products + Loans secured by securities

Shareholders’ equity** increased by Y160bil from March 31, 2014, to Y1.23tri.

Consolidated

Balance Sheet

Current Assets 22,190 (3,453) Current liabilities 19,353 (3,199)Cash and deposits 2,985 (1,098) Trading products 6,014 (717)Short-term investment securities 2,629 (46) Trading securities and other 3,374 (-52)Trading products 8,304 (1,193) Stocks , convertible bonds 189 (32)

Trading securities and other 5,192 (456) Bonds 3,049 (-102)Stocks , Convertible bonds 751 (165) CD/CP and others 135 (16)Bonds 3,675 (-84) Derivatives 2,640 (770)Beneficiary certificates 211 (96) Loans payable secured by securities 7,553 (1,222)CD/CP and others 553 (277) Deposits for banking business 2,745 (547)

Derivatives 3,111 (737) Short-term loans payable 1,011 (107)Operational investment securities 119 (11) Commercial papers 388 (121)(after allowance for poss ible inves tm ent losses) Current portion of bonds 264 (40)

110 (11)

Daiwa Corporate Inves tm ent 9 (1)Loans secured by securities 6,728 (839)

Non-current assets 810 (67) Non-current liabilities 2,209 (139)Property, plant and equipment 458 (26) Bonds payable 1,179 (-69)Intangible assets 77 (0) Long-term loans payable 946 (197)Investments and other assets 275 (41) Total liabilities 21,566 (3,339)

Inves tm ent securities 241 (41) Net assets 1,434 (181)Lis ted s tocks 167 (40) Owners ' equity 1,086 (97)Unlis ted s tocks 20 (0) Accumulated other comprehensive income 151 (62)Other 52 (1) Minority interes ts 187 (20)

Total Assets 23,001 (3,520) Total liabilities and net assets 23,001 (3,520)

Daiwa Securities SMBC PI + Daiwa PIPartners

Note: Figures in brackets indicate changes from March 31, 2014

Consolidated Balance Sheet （March 31, 2015）

（Y bil）

**Shareholders’ equity = Owners’ equity +Accumulated other comprehensive income

10

0

1000

2000

3000

4Q 1Q 2Q 3Q 4Q

0

500

1,000

1,500

2,000

2,500

3,000

3,500

13/4Q 14/1Q 14/2Q 14/3Q 14/4Q0%

50%

100%

150%

200%

250%

300%

Supplementary liquidity portfolio (left)

Liquidity Portfolio (left)

Liquidity portfolio and other total / Short-tem unsecured capital (right)

Financial ManagementConsolidated

Consolidated Total Capital Ratio： 22.3%

Consolidated Tier1 Capital Ratio： 21.3%

Consolidated Common Equity

Tier1 Capital Ratio: 20.4%

(Basel Ⅲ basis as at December 31, 2014)

Gross leverage ratio*： 16.0x

Adjusted leverage ratio**： 11.3x

Liquidity portfolio: Y 1.86 tri

Supplementary liquidity portfolio:

Y 1.20tri

Consolidated Capital Adequacy Ratio

Leverage Ratio Liquidity Portfolio and Other

（Y bil）Short -term unsecured capital procurement （left）

* Gross leverage ratio：total assets / net assets** Adjusted leverage ratio：（ total assets-assets related to cash forward transaction & repo trading ） / net assets

※ All figures are as at the end of each quarter.

19,48022,050 21,664

23,58323,001

1,4341,3921,3381,2591,253

12.9

15.5 17.5 16.2 16.9 16.0

12.111.4 11.310.8

Total assets (Y bil) Net assets (Y bil)Gross lev erage ratio Adjusted lev erage ratio

9,531 10,163 10,410 11,137 10,804 11,125 11,59812,387

9,0489,759 9,879 10,529 10,375 10,698 11,142

11,829

20.0% 19.7% 20.7% 21.9% 21.8% 22.5% 22.4% 22.3%

19.0% 18.9% 19.6% 20.7% 20.9% 21.6% 21.5% 21.3%

Total Quality Capital (Y 100mil) Tier1Capital （Y 100mil) Consolidataed Total Capital Ratio Tier1Ratio

バーゼルⅢBasel Ⅲ

FY20141Q 2Q 3Q

FY20131Q 2Q 3Q 4Q

FY20124Q

FY2013

4Q

FY2014

1Q 2Q 3Q 4Q

FY2013

4Q

FY2014

1Q 2Q 3Q 4Q

11※ Figures calculated based on managerial accounting of each subsidiary company

Segment Information

13.2%55,14048,7141.6%14,35114,12413,88012,783Asset Management

-1.8%

-58.2%

14.4%0.3%3.0%

-8.3%

% Changevs

FY13

532,22056,1268,351

37,966142,601

180,568232,033

FY2014

541,95144,81519,989

33,181

142,156175,338253,093

FY2013

-0.7%

-77.8%

9.5%17.0%15.5%-0.4%

% Changevs

3Q/14

139,31612,995

788

9,57641,120

50,69760,483

4Q

140,24817,9283,560

8,747

35,14543,89360,741

3Q

130,16313,0791,816

8,756

35,79444,55156,836

2Q

122,49012,1222,186

10,885

30,54041,42653,971

1Q

FY2014

Net operating revenues

WholesaleRetail

（Y mil）

Global MarketsGlobal Investment Banking

Consolidated totalOther/AdjustmentsInvestments

26.9%32,14225,328-0.7%8,0178,0738,0388,013Asset Management

-6.3%

-62.1%

127.8%2.2%

11.5%-23.9%

% Changevs

FY13

184,578 15,284 6,506

8,009 44,878

52,888 77,756

FY2014

197,0454,996

17,171

3,51643,912

47,428102,120

FY2013

-2.9%

-90.2%

-30.0%70.4%57.3%-3.4%

% Changevs

3Q/14

49,5782,573

288

1,03016,772

17,80220,895

4Q

51,0567,0742,951

1,4729,842

11,31421,641

3Q

44,2393,5251,382

1,57511,653

13,22818,064

2Q

39,7052,1101,884

3,9316,610

10,54117,155

1Q

FY2014

Ordinary income

WholesaleRetail

（Y mil）

Global MarketsGlobal Investment Banking

Consolidated totalOther/AdjustmentsInvestments

12

0

20

40

60

80

Equityunderwriting

Equity

Fixed income

Investment trust

Agency fee forinvestment trust

Other

Ordinary income

Net operatingrevenues 60,483 -0.4% 232,033 -8.3%

Ordinary incom e 20,895 -3.4% 77,756 -23.9%

% Changevs

FY13（ Y m il）

FY20144Q

FY2014% Change

vs3Q/FY14

Retail DivisionNet operating revenues and ordinary income

* Sales commission from equity underwriting

Net operating revenues remained almost flat compared to the previous quarter (-0.4% QoQ).

・Equity revenues decreased by 7.6% QoQ with the decline in the trading value of both Japan and foreign equity.

・Although sales of foreign bonds and structured bonds were steady, fixed income revenues declined by 1.7% QoQ as a result of a decrease in sales of domestic bonds.

・Other revenues increased by 34.2% QoQ with the solid expansion of the AUM of wrap accounts.

17.1

53.9

4.2

9.0

10.2

17.910.6

1.8

1Q

FY2014

18.0

56.8

4.8

9.4

9.9

18.112.3

2.0

2Q

21.6

60.7

5.3

9.8

10.1

19.314.8

1.2

3Q

20.8

60.4

7.1

9.6

9.9

18.9 13.7 0.9

4Q

Ordinary income

Net operating revenues

Other

Agency fee for investment trust

Distribution Commission for Investment trust

Fixed income

Equity

Equity underwriting*

（Y bil）

54.663.456.778.2

FY2013

4Q3Q2Q1Q

1.01.51.30.8

13.117.914.222.817.718.617.722.5

39.4

4.0

9.0

18.9

19.4

4.0

8.5

10.8

25.5

4.4

8.7

11.9

17.6

4.1

8.7

9.8

13

0

600

1,200

1,800

Equity

SMA +FundWrapPensionInsurance

Domesticbonds

Foreignbonds

Mutualfunds

*Total sales amount of Daiwa fund wrap and Daiwa SMA**Foreign bonds include yen-denominated bonds ***Mutual funds include switching transactions between funds

【 NISA 】 (as at the end of March, 2015)Total number of accounts applied: 704 thousand Total number of accounts opened: 686 thousand . Products purchased : [Transaction basis] Stocks 43% : Investment trusts 57% [Sales value basis] Stocks 44% : Investment trusts 56%Number of accounts and purchasing amount of NISA accumulative funds steadily increased.

【Net inflow of assets】

Net inflow of assets in FY2014 was Y1.0672tri, surpassing that of FY2011, when the deposit balance increased significantly with the start of the Daiwa Next Bank business in May 2011.The accumulation of net increase in assets has made solid progress mainly through mutual funds, fund wrap, and deposit balance which are key products for expanding stable revenues.

Sales and distribution amount by product

Retail Division Daiwa Securities

802.8

367.1

332.3

30.4

52.4

53.2

1Q

FY2013

502.7

376.3

168.9

28.0

71.7

66.0

2Q

624.1

379.3

119.3

22.5

77.1

99.9

3Q

498.6

346.5

122.6

21.6

70.0

68.7

4Q

Mutual funds***

Foreign bonds**

Domestic bonds

Pension Insurance

SMA + Fund Wrap*

Equity

533.6

318.5

144.9

3.0

153.7

86.6

2Q

472.9

324.7

147.6

19.1

64.0

98.4

1Q

FY2014

4Q3Q（Y bil）

51.550.8

238.0228.0

618.5611.7

335.2327.8

119.8162.7

22.42.5

Change in net inflow of assets

-200

0

200

400

600

800

1,000

1,200

FY2010 FY2011 FY2012 FY2013 FY2014

4Q

3Q

2Q

1Q

(Y bil)

14*FICC： Fixed Income, Currency and Commodities

Wholesale Division Global Markets

【Equity】

Principal trading of Japan equity based on client flow was steady, as the domestic market condition improved towards the end of thefiscal year.

【FICC*】Steady sales of structured bonds mainly contributed to the increase in derivatives-related revenues.

Overseas FICC revenues increased, mainly in the Americas.

0

10

20

30

40

50

Equity

FICC*

Others

Ordinaryincome

Net operating revenues and ordinary income

Net operatingrevenues 41,120 17.0% 142,601 0.3%

Ordinary incom e 16,772 70.4% 44,878 2.2%

% Changevs

3Q/FY14

% Changevs

FY13（ Y m il）

FY20144Q FY2014

6.6

30.5

0.6

16.2

13.6

1Q

FY2014

11.6

35.7

0.6

19.2

15.9

2Q

9.8

35.1

0.7

18.1

16.3

3Q

16.7

41.1

0.9

21.3

18.8

4Q

12.4

37.5

0.7

13.3

23.4

1Q

FY2013

9.5

34.0

0.7

17.9

15.3

2Q

15.5

40.6

0.6

18.9

21.0

3Q

6.3

29.9

0.4

14.6

14.8

4Q

Ordinary income

Net operating revenues

Others

FICC*

Equity

（Y bil）

15

Net Operatingrevenues 9,576 9.5% 37,966 14.4%

Ordinary incom e 1,030 -30.0% 8,009 127.8%

FY2014（ Y m il）FY2014

4Q

% Changevs

3Q/FY14

% Changevs

FY13

Wholesale Division Global Investment Banking

【Equity】

Accomplished deals, mainly for REITs.

<Selected lead managed deals>Daiwa House REIT Investment Corporation REIT PO Y28.3bilAEON REIT Investment Corporation REIT PO Y20.8bilORIX JREIT Inc. REIT PO Y18.4bil

【Debt】Lead managed SoftBank Corp.’s SB issue, one of the largest ever retail bond deals. Panasonic issued the largest wholesale bond for this fiscal year.

<Selected lead managed deals>SoftBank Corp. (7 yrs) SB (subordinated retail bond) Y450bilPanasonic Corporation (5, 7, 10 yrs) SB Total Y400bilNagoya Expressway (5, 10, 15 yrs) Municipal bond Total Y35bilADB (5, 10 yrs) Benchmark dollar bond TotalUSD3.0bil

【M&A】

<Selected deals>Acquisition of YUKIGUNI MAITAKE CO., LTD. by Bain Capital through its SPC.Acquisition of CosmoSteel Holdings Limited (Singapore) shares by HANWA Co., Ltd. Acquisition of eFront (France) by Bridgepoint (UK)

0

3

6

9

12

Equityunderw riting

Debtunderw riting

M&A/ Others

Ordinaryincome

Net operating revenues and ordinary income

0.0

8.1

3.0

2.2

2.7

4Q

1.6

8.9

2.9

2.5

3.4

3Q

1.6

8.4

2.2

2.1

3.9

2Q

0.1

7.6

2.6

2.9

2.0

1Q

FY2013

Ordinary income

Net operating revenues

M&A/others

Debt underwriting

Equity underwriting

（Y bil）

2.7 2.62.72.6

3.9

10.8

2.0

6.1

1Q

FY2014

1.5

8.7

1.8

4.1

2Q

1.4

8.7

2.8

3.3

3Q 4Q

1.0

9.5

4.7

2.0

16

0

5,000

10,000

15,000

20,000Daiwa AM (Bond f unds)

Daiwa AM (Equity f unds)

Daiwa SB Inv estments(Inv estment trust)

Daiwa SB Inv estments(Inv estment adv isory )

0

5

10

15

Daiwa AM

Others

Ordinaryincome

Asset Management Division

* ‘Others’ includes Daiwa Fund Consulting, Daiwa Real Estate Asset Management, and Daiwa Office Investment Corporation

Assets under management

※ All figures are as at the end of each quarter

Net operating revenues and ordinary income

Net Operatingrevenues 14,351 1.6% 55,140 13.2%

Ordinary incom e 8,017 -0.7% 32,142 26.9%

（ Y m il）FY2014

4Q

% Changevs

3Q/FY14

% Changevs

FY13FY2014

17.9%

17,321

2,337

2,236

9,601

3,145

1QFY2014

17.7%

17,927

2,482

2,320

9,938

3,186

2Q

17.7%

19,075

2,554

2,545

10,710

3,265

3Q

17.4%

19,545

2,672

2,526

11,032

3,314

4Q

Daiwa Securities Group Share

Total

Daiwa SB Investments(Investment advisory)

Daiwa SB Investments(Investment trust)

Daiwa AM(Equity funds)

Daiwa AM(Bond funds)

（Y bil）

17.8%17.8%17.9%18.1%

FY20134Q3Q2Q1Q

3,0643,2902,9592,757

8,9588,9688,6168,415

16,60017,26416,35115,884

2,3272,7612,6142,500

2,2492,2452,1602,211

8.0

12.7

3.0

9.7

1Q

FY2014

8.0

13.8

3.6

10.2

2Q

8.0

14.1

3.3

10.7

3Q

8.0

14.3

3.2

11.0

4Q

Ordinary income

Net operating revenues

Others*

Daiwa AM

（Y bil）FY2013

4Q3Q2Q1Q

6.26.46.36.3

12.012.212.112.3

2.72.52.72.6

9.39.69.39.6

17

0

50

100

Private equityand PIPEs

Monetaryclaims

Real estate

0

2

4

6

8

10

Netoperatingrevenues

Ordinaryincom e

Net operatingrevenues 788 -77.8% 8,351 -58.2%

Ordinary incom e 288 -90.2% 6,506 -62.1%

（Y m il）FY2014

4Q

% Changevs

3Q/FY14

% Changevs

FY13FY2014

Investment Division

Principal investment values

※ Principal investment values are the sum of Daiwa Securities SMBCPI and Daiwa PI Partners ※ All figures are as at the end of each quarter

Net operating revenues and ordinary income

77

20

21

36

1Q

FY2013

72

20

22

30

2Q

82

20

25

36

3Q

87

20

26

41

4Q

Total

Real estate

Monetary claims

Private equity and PIPEs

（Y bil）

98

20

29

49

4Q

FY2014

3Q2Q1Q

222324

918586

202020

494242

7.7

8.3

1Q

FY2013

5.9

6.8

2Q

0.6

1.6

3Q

2.7

3.1

4Q

Ordinary income

Net operating revenues

（Y bil）FY2014

2.9

3.5

3Q

1.3

1.8

2Q

0.2 1.8

0.7 2.1

4Q1Q

18* DIR Group includes Daiwa Institute of Research Holdings, Daiwa Institute of Research, and Daiwa Institute of Research Business Innovation

(Excluding in-group transactions and dividend from subsidiaries)

DIR Group

Ordinary income for the three DIR Group companies rose significantly QoQ due to an increase in the number of system development projects.

Daiwa Next Bank

Ordinary income was Y2.6bil mainly due to portfolio rebalancing.

Overseas Operation

Overseas operation saw a decrease in losses, owing to the improvement in earnings in Asia/Oceania and the Americas.

Europe continued to post losses mainly due to a decrease in the number of CB deals, although the M&A business continued to show a steady performance.

Asia’s loss decreased as revenues for equity and FICC improved.

Americas returned to profit mainly due to improved FICC revenues. Ordinary income for FY2014 increased compared to the previous year.

DIR Group, Daiwa Next Bank and Overseas Operation

Ordinary Income

452

-831

-1,326

-1,704

2,561

3,620

4Q

FY2013

25

168

223

417

2,697

1,062

1Q

FY2014

144

-447

-1,527

-1,829

2,381

1,806

2Q

-399

-1,793

-171

-2,364

5,846

2,008

3Q

1,279

-695

-712

-127

2,699

3,087

4Q

1,050

-2,768

-2,187

-3,904

13,625

7,966

FY2014

916

-3,763

-2,307

-5,154

5,700

8,250

FY2013

-3.4%53.7%DIR Group*

139.0%-53.8%Daiwa Next Bank

Americas

Asia /Oceania

Europe

--Overseas operation

Total

--

--

14.6%-

% Change vs

FY13

% Change

vs3QFY14

（Y mil）

Reference

20

FY2013

4Q 1Q 2Q 3Q 4Q

65,984 68,686 70,954 76,029 75,445 -0.8% 301,937 291,115 -3.6%

16,596 14,082 16,585 20,010 19,271 -3.7% 89,634 69,950 -22.0%

5,812 11,172 10,214 9,678 6,487 -33.0% 29,606 37,553 26.8%

10,251 10,569 10,162 10,293 10,025 -2.6% 52,706 41,051 -22.1%

33,323 32,861 33,991 36,046 39,660 10.0% 129,990 142,559 9.7%

2,083 2,029 2,423 3,207 4,218 31.5% 6,737 11,879 76.3%

871 408 522 144 668 361.3% 3,316 1,743 -47.4%

2,528 2,029 1,765 2,586 3,935 52.2% 9,107 10,315 13.3%

20,832 21,639 22,382 23,348 23,553 0.9% 84,771 90,924 7.3%

141 142 157 118 157 33.1% 1,512 575 -62.0%

6,866 6,611 6,740 6,640 7,127 7.3% 24,545 27,120 10.5%

% Changevs

3Q/FY14

% Changevs

FY13

FY2014FY2013 FY2014（ Y mil）

M&A commission

Investment advisory andAccount management fees

Other

Total commission

Brokerage com m ission

Other com m ission

Underw riting com m ission

Dis tribution com m iss ion

Investment enterprisepartnership administration fee

Management fee

Life insuranse salescommission

Consolidated

Breakdown of commission

※ Until 2Q FY2014, part of the revenues based on investment entrustment contracts of Daiwa Securities’ wrap accounts had been distributed to two items, namely, Distribution commission and Other of Other commission. The revenues are now recorded in a single item: Investment advisory and Account management fees.

21

0

10

20

30

40

50

60Equity

Domestic bonds

Foreign bonds

Stock investmenttrusts

Bond investmenttrusts

Overseas mutualfunds

Others

0

800

1,600

2,400

3,200

0

500

1,000

1,500

Ordinarydeposits

Timedeposits

Negotiablecertificate ofdeposits /Other

Number ofaccounts(thousands)

Daiwa Securities/Daiwa Next Bank

Customer Assets, Deposit Balance & Accounts

Daiwa Securities assets under custody Daiwa Next Bank Deposit balance & number of accounts（thousands）（Y bil）

※All figures are as at the end of each quarter. ※All figures are as at the end of each quarter.

（Y tri）

50.5

1.2

0.2

1.6

6.1

5.1

8.1

27.8

1Q

FY2014

51.3

1.2

0.2

1.6

6.3

5.1

7.6

29.0

2Q

52.9

1.1

0.2

1.6

6.8

5.1

7.5

30.2

3Q

54.6

1.2

0.2

1.6

6.9

4.9

7.3

32.2

4Q

0.20.30.30.3Overseas mutual funds

FY2013

4Q3Q2Q1Q（Y tri）

48.4

1.1

1.6

5.6

5.0

7.9

26.7

47.5

1.0

1.6

5.5

4.9

8.4

25.4

5.04.8Foreign bonds

5.55.4Stock investmenttrust

1.81.7Bond investment trusts

1.11.1Others

50.547.8Total

8.38.7Domestic bonds

28.225.6Equity

928

2,491

2

1,340

1,147

1Q

FY2014

953

2,560

3

1,387

1,169

2Q

985

2,772

3

1,447

1,321

3Q

1,018

3,047

62

1,528

1,455

4Q

2,3992,3572,2682,229Deposit balance

1,2611,1461,1321,122Time deposits

1,0851,2061,063942Ordinary deposits

901

52

4Q

865

4

3Q

818

73

2Q

775

164

1Q

FY2013

Negotiablecertificate ofdeposits / Other

Number of accounts （thousands)

(Y bil）

22

Equity 13.0 14.0 7.7% 72.0 52.0 -27.8%

FICC* 33.0 37.0 12.1% 111.0 132.0 18.9%

Total 46.0 51.0 10.9% 183.0 184.0 0.5%

FY20144Q FY2013（ Y bil）

FY20134Q

% Changevs

3Q/FY14

% Changevs

FY13FY2014

（ Y mil）FY2013

4QFY2014

4Q% Change

vs3Q/FY14

FY2013 FY2014% Change

vsFY13

Equity 10,597 4,676 -55.9% 47,314 24,795 -47.6%

Bond and forex 28,209 37,140 31.7% 109,185 132,424 21.3%Net financialincom e 6,952 14,456 107.9% 47,641 45,863 -3.7%

Total 45,758 56,273 23.0% 204,141 203,083 -0.5%

*FICC： Fixed Income, Currency and Commodities

Daiwa Securities/Overseas

Equity & FICC Income: Consolidated Trading Gain/Loss

＜Reference＞Financial accounting basis：Net trading income / loss + Net financial income

Consolidated trading gain / loss(Managerial accounting basis)【Managerial accounting basis】

0

15

30

45

60EquityFICC*

41.0

26.0

15.0

4Q

51.0

30.0

21.0

3Q

40.0

28.0

12.0

2Q

51.0

27.0

24.0

1Q

FY2013

50.0

32.0

18.0

4Q

FY2012

37.033.032.030.0FICC*

Total

Equity

（Y bil）

46.0

14.0

2Q

41.0

11.0

1Q

FY2014

51.046.0

14.013.0

4Q3Q

23

FY2013

4Q 1Q 2Q 3Q 4Q

Operating revenues 85,312 89,054 95,484 101,344 100,775 -0.6% 399,876 386,659 -3.3%

Commission received 42,655 44,904 46,919 49,556 49,186 -0.7% 206,128 190,566 -7.5%Brokerage commission 12,452 10,232 12,176 15,150 14,353 -5.3% 70,861 51,912 -26.7%

Stock and others 12,177 9,971 11,886 14,537 13,638 -6.2% 69,212 50,035 -27.7%Underwriting commission 5,069 8,777 6,433 7,097 6,079 -14.3% 25,198 28,388 12.7%

Equity 3,229 5,437 2,833 3,397 2,656 -21.8% 13,377 14,324 7.1%Bond and others 1,840 3,340 3,599 3,699 3,423 -7.5% 11,820 14,063 19.0%

Distribution commission 9,744 10,157 12,589 10,054 9,565 -4.9% 50,660 42,367 -16.4%Investment trust 9,276 9,864 12,325 9,803 9,424 -3.9% 49,105 41,417 -15.7%

Other commissions 15,388 15,736 15,719 17,254 19,188 11.2% 59,408 67,899 14.3%Agency fee and others 9,149 9,496 9,998 10,308 10,294 -0.1% 36,704 40,098 9.2%Investment advisory andAccount management fees 2,083 2,029 2,423 3,207 4,218 31.5% 6,737 11,879 76.3%Life insurance sales commission 871 408 522 144 668 361.3% 3,316 1,743 -47.4%M&A commission 661 1,038 481 1,082 1,224 13.2% 3,723 3,827 2.8%

Net trading income/loss 34,281 36,256 37,666 42,234 40,657 -3.7% 161,199 156,815 -2.7%Equity 5,857 5,879 4,098 11,408 5,657 -50.4% 50,137 27,043 -46.1%Bond and forex 28,423 30,377 33,568 30,826 34,999 13.5% 111,062 129,772 16.8%

Financial revenues 8,375 7,893 10,899 9,553 10,931 14.4% 32,549 39,277 20.7%Financial expenses 4,058 6,027 4,123 6,000 3,915 -34.7% 19,515 20,067 2.8%

Net operating revenues 81,254 83,026 91,361 95,344 96,859 1.6% 380,361 366,592 -3.6%

FY2014FY2014

（ Y mil）% Change

vsFY13

% Changevs

3Q/FY14FY2013

Financial Summary ⅠDaiwa Securities

※The Distribution commission for Investment trust in 2Q FY2014 includes the amount equivalent to the sales commission for Accordia Golf Trust’ s IPO.

※ Until 2Q FY2014, part of the revenues based on investment entrustment contracts of Daiwa Securities’ wrap accounts had been included in Investment trust of Distribution commission. From 3Q FY2014, those revenues are recorded in Investment advisory and Account management fees.

※The name for Investment trust included in Other commissions has been changed to Agency fee and others.

24

FY2013

4Q 1Q 2Q 3Q 4Q

54,963 55,359 57,363 58,767 58,512 -0.4% 226,185 230,001 1.7%

Trading related expenses 8,729 8,605 8,708 9,703 9,576 -1.3% 36,350 36,594 0.7%

Personnel expenses 23,966 24,333 25,960 26,274 26,337 0.2% 99,164 102,906 3.8%

Real estate expenses 6,135 6,336 6,435 5,835 5,985 2.6% 24,150 24,592 1.8%

Office cost 10,635 10,599 10,659 11,200 11,191 -0.1% 42,246 43,650 3.3%

Depreciation 3,977 3,826 3,984 3,941 3,606 -8.5% 18,004 15,358 -14.7%

Taxes and dues 604 849 718 861 659 -23.5% 2,671 3,088 15.6%

Other 914 808 897 949 1,155 21.8% 3,598 3,810 5.9%

26,661 28,748 34,247 37,041 38,649 4.3% 155,505 138,687 -10.8%

24,241 27,605 31,168 34,231 34,027 -0.6% 144,365 127,032 -12.0%

13.9% 16.0% 18.2% 19.1% 19.0% 22.7% 18.0%

338.0% 342.6% 325.3% 320.7% 288.5% 338.0% 288.5%

SG&A

（ Y mil）% Change

vsFY13

% Changevs

3Q/FY14

FY2014FY2013 FY2014

Capital adequacy ratio

Net income

ROE（ Annualized）

Ordinary income

Daiwa Securities

Financial Summary Ⅱ

25

Daiwa Securities

Balance SheetBalance Sheet （March 31, 2015）

Current assets 11,969 (1,145) Current liabilities 10,297 (1,215)Trading products 5,885 (759) Trading products 4,325 (290)

Trading securities and other 2,754 (50) Trading securities and other 1,677 (-454)Derivatives 3,131 (709) Derivatives 2,648 (745)

Margin transaction assets 228 (-23) Margin transaction liabilities 47 (0)Loans on m argin transactions 210 (-22) Loans payables secured by securities 3,451 (403)

18 (0) Short-term loans payable 1,158 (180)

Loans secured by securities 3,943 (191) Commercial Papers 388 (121)Short-term guarantee deposits 256 (71) Current portion of bonds 164 (80)Short-term loans receivable 370 (-17) Non-current liabilities 1,065 (-57)

Bonds payable 640 (-178)Long-term loans payable 392 (118)

Non-current assets 98 (5) Total liabilities 11,367 (1,159)Property, plant and equipment 3 (0) Net assets 700 (-8)Intangible assets 44 (2) Shareholders' equity 692 (-11)

Capital s tock 100 －

Total assets 12,068 (1,150) Total liabilities and net assets 12,068 (1,150)

Cash collateral pledged for securitiesborrowing on m argin transactions

Note: Figures in brackets show changes from March 31, 2014

（Y bil）

26

Daiwa Securities

Number of accounts and Equity trading

2,949

3,969

3,483

3,969

24.2

344

35

2,586

1,402

2,765

3,492

4Q

FY2012

2,057

2,550

2,334

2,611

45.1

626

35

2,775

1,357

2,839

3,614

1Q

FY2014

2,534

3,128

2,799

3,135

55.9

763

37

2,810

1,356

2,857

3,642

2Q

2,939

3,745

3,260

3,702

71.8

1,037

42

2,857

1,347

2,877

3,680

3Q

2,790

3,539

3,153

3,552

87.2

1,242

44

2,904

1,342

2,910

3,719

4Q

2,8043,1903,1004,848Online out of total (thousands)

3,0554,4173,7376,567Total trading value (Y bil)

Contracts and trading value for individualinvestors at Daiwa Securities (Equity)

1,3621,3441,3721,383Accounts holding equity (thousands)

Online trading accounts (thousands)

Accounts with balance (thousands)

3,6033,5773,5463,516Cash Management Service accounts (thousands)

2,8252,7942,7922,776

2,7532,7172,6722,631

4,819

5,546

26.3

386

46

1Q

FY2013

2,482

3,144

40.9

564

44

4Q

3,047

3,703

36.4

539

46

3Q

2,892

3,501

31.7

465

44

2Q

Online out of total (Y bil)

Total number of contracts (thousands)

Number of customers (thousands)

Contract assets under management (Y bil)

Newly opened accounts (thousands)

Wrap account service

27

リテール部門（大和証券） 資産導入額の推移

Daiwa Securities

Retail Division (Daiwa Securities) Net inflow of assets Retail Division (Daiwa Securities) Net inflow of assets (individuals)

Note: Net inflow of assets = net inflow of cash and securities

Net Inflow of Assets

-200

-100

0

100

200

300

CorporationIndividual

-200

-100

0

100

200

300

Net inflow of cashNet inflow of securities

248.7

187.7

60.9

4Q

267.4

192.9

74.4

3Ｑ

257.2

151.0

106.2

2Ｑ

210.7

146.5

64.1

1Ｑ

FY2013

147.5

136.3

11.1

4Ｑ

FY2012

293.8

175.8

117.9

1Ｑ

FY2014

162.9

147.4

15.4

4Q

-3.2

-107.6

104.3

3Ｑ

151.7

69.1

82.6

2Ｑ

Individual

Total

Corporation

（Y bil）

53.7

97.2

2Ｑ

15.5

160.3

1Ｑ

FY2014

118.7

74.1

3Ｑ

44.2

102.3

1Ｑ

FY2013

37.7

98.6

4Ｑ

FY2012

75.3

112.4

4Q

69.9

77.5

4Q

49.2

-156.9

3Ｑ

66.5

2.5

2Ｑ

New inflow of securities

Net inflow of cash

（Y bil）

28

0

150

300

450

600

750

900

0%

10%

20%

30%Net increase ratio (right)

Daiwa Securities

Mutual Funds & Foreign Equity

purchase - （sell-off + redemption）Note: Net increase ratio（%）＝ ×100

purchaseNote: Includes switching transaction between funds.

Foreign equity trading value in retail divisionSales and net increase ratio of mutual funds in retail division

0

50

100

150

200

250

300

12/4Q 13/1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q

OthersAsiaAmericas

4Q3Q2Q1Q

FY2013

4Q

FY2012

1Q

FY2014(Y bil)

4Q3Q2Q 4Q3Q2Q1Q

FY2013

4Q

FY2012

1Q

FY2014(Y bil)

4Q3Q2Q

29

League TableDaiwa Securities

FY2014 League Table

M&A

Number of deals

Samurai bonds(excl. family bonds)

Primary andsecondary equity

offeringsAgency bondsStraight bonds

(excl. family bonds)IPO

Nomura Nomura Nomura Mitsubishi UFJMS Daiwa

43.6% 46.5% 23.3% 25.3% 23.6%

Daiwa Mizuho Mizuho Nomura SMBC Nikko

15.0% 15.4% 22.2% 22.1% 18.6%

Mizuho Mitsubishi UFJMS Daiwa Mizuho Mizuho

12.2% 8.5% 18.0% 17.9% 17.8%

SMBC Nikko SMBC Nikko SMBC Nikko SMBC Nikko Mitsubishi UFJMS

11.7% 7.8% 15.9% 15.2% 17.4%

Goldman Sachs Daiwa Mitsubishi UFJMS Daiwa Nomura

7.3% 6.7% 15.9% 12.4% 13.9%

SMFG

Nomura

Daiwa

1st

2nd

3rd

4th

KPMG

Mizuho

5th

Source: Daiwa Securities Apr 2014 – Mar 2015M&A： THOMSON REUTERS Apr 2014 – Mar 2015 “M&A advisory league table for any Japanese involvement announced (AD19)”

Note: Primary and secondary equity, IPO, Straight bonds, Agency bonds and Samurai bonds are based on settlement dateJoint lead manager allotment of Primary and secondary equity, IPO, Straight bonds and Agency bonds is based on underwritten amountJoint lead manager allotment of Samurai bonds is divided up evenly among the managers

30

4Q 1Q 2Q 3Q 4Q

21,023 21,827 22,667 23,585 23,778 0.8% 85,560 91,858 7.4%

20,832 21,639 22,382 23,348 23,553 0.9% 84,771 90,924 7.3%

Equity investment trust 20,682 21,493 22,235 23,214 23,440 1.0% 84,193 90,383 7.4%

Bond investment trust 150 146 147 134 112 -16.1% 578 540 -6.5%

191 187 285 236 225 -4.6% 788 933 18.4%

17,037 17,590 17,895 18,728 18,695 -0.2% 69,356 72,910 5.1%

11,679 12,062 12,427 12,809 12,679 -1.0% 47,520 49,978 5.2%

5,358 5,527 5,468 5,919 6,016 1.6% 21,836 22,931 5.0%

3,986 4,236 4,771 4,856 5,083 4.7% 16,203 18,948 16.9%

4,060 5,413 4,859 5,050 5,093 0.9% 16,503 20,416 23.7%

Net income 2,338 3,842 3,130 3,227 3,231 0.1% 10,126 13,431 32.6%

FY2013 FY2014FY2014 %

Changevs

FY13

%Change

vs3Q/FY14

Operating revenues

Management fee

（Y mil）FY2013

Other operating revenue

SG&A

Ordinary income

Commission paid

Other SG&A

Operating income

Daiwa Asset Management

Financial Summary

31

Confidence level：99% (one-side test)Holding period：1 dayAdjusted for price correlation between product

Consolidated

Value at RiskRange and assumption of VaR

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

VaR （Quarter end） 1.63 1.96 1.30 1.41 1.48 1.29 2.00 2.07 2.32

High 2.43 2.41 2.95 2.47 2.33 1.94 2.30 2.37 3.46

Low 1.16 1.31 1.09 1.21 1.09 1.22 1.08 1.42 1.61

Average 1.61 1.84 1.57 1.65 1.52 1.50 1.48 1.95 1.93

Equity 0.56 1.11 0.81 0.64 0.82 0.45 0.49 0.43 0.70

Interest 1.52 1.33 1.28 1.35 1.36 1.40 1.82 1.90 2.27

Currency 0.96 0.65 0.22 0.19 0.20 0.32 0.39 0.76 0.32

Commodity - - - 0.01 - - - - 0.02

By risk factors (Quarter end)

FY2013(Y bil)

FY2012 FY2014

32

FY2012

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

Total 13,759 14,098 13,946 13,789 13,659 14,117 13,999 13,919 13,807

Overseas 1,664 1,603 1,596 1,551 1,547 1,500 1,508 1,489 1,476

FY2013 FY2014

Number of employees as at end of each quarter.※ Total figures are the sum of consolidated group companies and Daiwa SB Investments.※ Overseas figures are the sum of consolidated group companies under Daiwa International Holdings and Daiwa Securities.

Consolidated

Number of Group Employees

Contact Contact

Daiwa Securities Group Inc.Investor Relations

TEL: +81-3-5555-1300 FAX: +81-3-5555-0661E-mail: ir-section@daiwa.co.jpURL: http://www.daiwa-grp.jp/ir/english/