Keio BS　20121024　Daiwa

IWAI Toru, October 24, 2012

Social Impacts by Leveraging Financial Capabilities

Keio Business School -Strategic Management with Social Impacts-

©Daiwa Securities Group Inc.1

Contents

1. Mission at Financial, Capital Markets& Daiwa Securities Group (P. 2～5)

2. MDGs (Millennium Development Goals)& SRI（Socially Responsible Investment）(P. 6～ 15)

3. SRI / Impact Investment Products& CSR at Daiwa Securities Group (P. 16～32)

4. Conclusion (P. 33)

Appendix (P. 34 ～55)

This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.


Mission at Financial & Capital MarketsSupply and demand of funds are connected through Financial and Capital Markets. Its mission is to create a smooth money flow, provide capital as a blood in economy and contribute to a sustainable society.

Financial & Capital Markets


Leveraging Financial Capabilities

Ｔo contribute to a sustainable society.


Global Network

Geneva BranchGeneva Branch

Hong KongHong Kong

AustraliaAustralia

LondonLondon

ParisParis

MilanMilan

FrankfurtFrankfurt

Melbourne Melbourne

Hong KongHong Kong

Frankfurt BranchFrankfurt Branch

SingaporeSingapore

SingaporeSingapore

Paris BranchParis Branch

NYNY

London Head OfficeLondon Head Office

Milan BranchMilan Branch

Bahrain BranchBahrain Branch

Seoul BranchSeoul Branch

TaiwanTaiwan

The PhilippinesThe Philippines

Beijing Representative OfficeBeijing Representative Office

Daiwa SSC SecuritiesDaiwa SSC Securities

ManilaManila

ShanghaisShanghais

BeijingBeijing

SeoulSeoul

TaipeiTaipei

Bangkok Rep.Office Bangkok Rep.Office San FranciscoSan Francisco

Dubai BranchDubai Branch

DubaiDubai

MoscowMoscow

MumbaiMumbai BangkokBangkok

Hanoi Rep. OfficeHanoi Rep. Office

HanoiHanoiシャーロットシャーロット

ChicagoChicago

=Development Bank of Philippines has 40% of share

Our company’s stronghold

Special hubs for M&AAcquisition of M&A Advisory Division of Close Brothers and Close Brothers Corporate Finance on Jul. 2009.

MadridMadrid BarcelonaBarcelona

LyonLyon

Manchester Manchester

WarsawWarsaw

GenevaGeneva

ZurichZurich

NY Head OfficeNY Head Office

San Francisco BranchSan Francisco Branch

According to the M&A division, another 20% of

investment for partnership

According to the M&A division, another 20% of

investment for partnership

Daiwa Capital Markets America IncDaiwa Capital Markets America Inc

Daiwa Capital Markets Europe LimitedDaiwa Capital Markets Europe Limited

IndiaIndia

Moscow Representative OfficeMoscow Representative Office

Daiwa Capital Markets Asia Holding B.V.Daiwa Capital Markets Asia Holding B.V.

=Merger with Shanghai Securities (Daiwa: 33% of share)BahrainBahrain

Daiwa Securities Trust Company (US)Daiwa Europe Fund Managers (Ireland) LimitedDaiwa Europe Trustees (Ireland) Limited

Office in 20 countries and regions


Valuing Human Resources

Employees are the source of our competitiveness.

Valuing Human Valuing Human Resources Resources

Employees are the source of our competitiveness.

EmployeesEmployees

Earning Sound ProfitsImprove corporate value by developing a healthy business.

Earning Sound ProfitsEarning Sound ProfitsImprove corporate value by developing a healthy business.

ShareholdersShareholders

Building TrustTrust from the clients is the foundation of our business.

Building TrustBuilding TrustTrust from the clients is the foundation of our business.

CustomersCustomers

Contributing to Society Contribute to the community and economic development through finance and capital markets.

Contributing to Society Contributing to Society Contribute to the community and economic development through finance and capital markets.

Society Society

Stakeholders & Corporate Principles


Stakeholder Concerns

Shareholders Customers; Clients

Employees

Stricter c

ustomers

’ view

;

Heighte

ning cus

tomers’

orientatio

n by e

asing t

he re

gulatio

n

Silent shareholders

to active shareholders

From lifetime employment to performance-base;Aiming to be a professional

Strengthening monitoring of the enterprise;Social business

Local Community; Citizens

Improve S

CM

Business Partners

Climate

Climate

Change

Change

Governance Governance ComplianceCompliance

Human

Human

Rights

Rights

Pover

ty

Pover

ty

DiversityDiversity

Enterprise


Towards a Sustainable Society

Sustainability Sustainability

～20th century

＜Unlimited Resource＞

21st Century～

＜Limited Resource＞

Materially R

ich

Carbon energyCarbon energyreplaced animals replaced animals and manpowerand manpower

Renewable Energy Renewable Energy (Solar, wind, gravitational, geothermal) (Solar, wind, gravitational, geothermal)

Growth

ParadigmParadigmShiftShift

Industrial Industrial RevolutionRevolution Low Carbon Community


MDGs (Millennium Development Goals)

Source: The World Bank, “The costs of attaining the millennium development goals.” Summary of World Bank Policy Research Working Paper, “Development Goals: History, Prospects and Costs,” by Shantayanan Devarajan, Margaret J. Miller, and Eric V.Swanson.

In addition to $57 billion of ODA in 1999, another $40-60 billions p.a. are needed to achieve the MDGs .

■Additional fund necessary to; （include double count）（Bil. USD）

Poverty Eradication 39 ～ 54

Education 10 ～ 25

Health care 20 ～ 25

Emvironment 5 ～ 21

1. End Poverty

2. Universal Education

3. Gender Equality

4. Child Health

5. Maternal Health

6. Combat HIV/AIDS

7. Environmental Sustainability

8. Global Partnershiphttp://www.un.org/millenniumgoals/

http://www.un.org/millenniumgoals/


Public Money for Social Issues

Source: website of Japan’s MOFA


Private Money for Social Issues

Ｗorld financial assets = $178 trillion in 2008 (world GDP, $58 trillion ｘ3)＜Background＞

Fiscal condition of each country grows increasingly severe (policy makers’ side)

Not only Grant/ODA, but also Investments are required to solve social issues

Reflect on the financial crisis (investors’ side)

Ｗorld financial assets = $178 trillion in 2008 (world GDP, $58 trillion ｘ3)＜Background＞

Fiscal condition of each country grows increasingly severe (policy makers’ side)

Not only Grant/ODA, but also Investments are required to solve social issues

Reflect on the financial crisis (investors’ side)

■ GIIN (Global Impact Investing Network) GIIN is a not-for-profit organization created to “increase the scale and effectiveness of impact investing.”

It was inaugurated at Clinton Global Initiative in Sep. 2009, to measure growth and increase of the social investment, ‘Impact Investment’, in which is more direct and has an immediate result compare to conventional SRI (Socially Responsible Investment) Representative examples of investment products: vaccine bonds of IFFIm, Generation Investment Management of Al Gore, former US Vice President. Main investment target: poverty & hunger; global warming; water, food and energy; medical care, health, welfare; community development, education


Impact Investing Awareness

70

69

33

79

37

56

17

0 20 40 60 80 100

水・衛生

貧困・飢餓

医療・保健

教育

社会基盤整備

気候変動

興味がない

102

83

64

52

11

0 20 40 60 80 100 120

成長性が見込める

社会性を重視した経営姿勢かどうか

利益を上げている

株主への還元

事業規模

89

38

30

0 20 40 60 80 100

双方

投資リターン

社会貢献

97

31

0

0 20 40 60 80 100 120

賛同する

大いに賛同する

賛同しない

■ Which of financial return or social return do you care?

■ Do you support Impact Investing?

■ What social problems are you seriously concerned about?

■ What aspect do you most value when investing?

Yes

Strongly Yes

No

Both

Financial Return

Social return

Water

PovertyHealth

Education

InfrastructureClimate Change

No interest

Revenue growth

Profit

Scale of operation

CSR strategy

Dividend

Source: Questionnaire at Impact Investment Forum 2010, September 9th


17%

32%

18%

3%

30%

55%

7%

7% 4%

27%

Billions of dollars, as of the end of 2009Japan* United Kingdom* Germany* France* United States

(%) (%) (%) (%) (%)Total Financial Assets 15,638 100.0 6,709 100.0 6,688 100.0 5,388 100.0 44,510 100.0

Currency and deposits 8,592 54.9 1,913 28.5 2,560 38.3 1,553 28.8 7,756 17.4Life insurance and pension fund reserves 4,228 27.0 3,615 53.9 2,241 33.5 2,126 39.5 13,191 29.6Shares and other equity 1,104 7.1 744 11.1 523 7.8 879 16.3 13,972 31.4Mutual funds and securitis other than shares 1,047 6.7 218 3.3 1,315 19.7 504 9.4 8,135 18.3Others 668 4.3 218 3.3 49 0.7 327 6.1 1,457 3.3

Total Financial Liabilities 4,085 26.1 2,474 36.9 2,193 32.8 1,864 34.6 14,068 31.6Net Financial Assets 11,553 73.9 4,235 63.1 4,495 67.2 3,524 65.4 30,442 68.4

Deep pocket seeking quality

Primary sources: Japan: Bank of Japan, Flow of Funds Accounts , June 17, 2010 United Kingdom: Office for National Statistics, Financial Statistics No 580, August 2010 Germany: Deutsche Bundesbank, Financial Accounts for Germany 1991 to 2009. France: Banque de France, Financial Accounts and Financial Balance Sheets, June1, 2010. United States: Federal Reserve Statistical Release, Flow of Funds Accounts, June10, 2010.

* converted into US dollars based on the year-end exchange rates of GBPUSD=1.62, EURUSD=1.43, USDJPY=92.90

Household Financial Assets

Japan United Kingdom

Germany

France United States

Currency and deposits Life insurance and pension fund reserves Shares and other equity Mutual funds and securitis other than shares Others

Currency and

deposits

Currency &

deposits

Insurance&

PensionShares

Mutual funds

Others29%

3%3%

54%

11%

20%1%

38%

34%

8%

29%9%

6%

16%

40%

Insurance&

Pension

Shares

Mutual funds


Extremely Low in Japan

Source：「European SRI Study 2010」; based on Eurosif publication and SIF-J material,

compiled by Daiwa Securities Group. Exchange rate as of Dec 31, 2009

SRI市場規模

4,986

2,141

40558 4

0

1,000

2,000

3,000

4,000

5,000

6,000

欧州(2009)

米国(2010)

カナダ(2008)

豪州・NZ (2010)

日本(2009)

（10億ユーロ）Billion Euro

Socially Responsible Investment (SRI) Market size

Europe US Canada Aus/NZ JPN


SRI issues in Japan

1. Regulation and Guideline to promote SRI.

2. Interests among Labor Unions, Religious Groups.

3. SRI Product and Service.

4. Consciousness of a social impact through investing.

5. School Education about Finance and Investment.


SRI Initiatives in Japan

1. Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century), Nov.2011

2. “Workers’ Capital Guideline” by RENGO (Japanese Trade Union Confederation), Dec.2010

3. New SRI / Impact Investment products

4. Events and Forums for SRI and Impact Investment

5. Workshops for teacher and student financial capabilities.


CSR at Daiwa Securities Group

1. Daily business 2. Developing & offering SRI/Impact Investing products

-Eco fund; SRI fund; microfinance fund -Vaccine bonds; microfinance bonds, etc.

3. Enlightening Event for SRI & Impact Investing4. SRI/ESG Research

1.Teacher and Student Financial Capabilities

2. Daiwa Securities Group Tsunami Reconstruction Foundation

3. Daiwa Phoenix Japan Grant Program (Nippon Support Fund)

・2011 Principles for Financial Action for the 21st Century

・2010 Signing the UN Global Compact (GC)・2006 Signing the UN Principles for Responsible Investment (PRI)・2004 Signing the UNEP Finance Initiative (UNEP FI) &

Carbon Disclosure Project (CDP)

Non-m

arketM

arket

（WLB, Info disclosure, external appraisal

）

CSR

Managem

ent

Sustainable Enterprise

Sustainable Society

2. Social Engagement

3. Corporate Citizenship

1. Core Business

ObjectiveCSR Activities (Implementations)


1. Core Business


Daiwa 63%

Others37%

Total608.8

JPY in Billion

▼Ｔｏｔａｌ in Japan

JPY 608.8 Billion

▼Daiwa

JPY 386.5 Billion

March 2008～July 2012

Source: Daiwa

Securities.

Poverty ,108.8

Environment,145.8

Vaccine,111.8

Education,11.8Food, 8.3

Impact Investment Bonds


Impact by IFFIm Vaccine Bonds

GAVI had contributed to the immunization of an additional 326 million children, who might not otherwise have had access to vaccines by the end of 2011.

As a results, 5.5million future deaths avertedthrough GAVI support.(2000-2011).

GAVI Website: http://www.gavialliance.org/index.aspx

IFFIm has raised over US$ 3.6 billion since 2006 by July 2012.Daiwa has arranged US$ 1.2 billion Vaccine Bond since 2008.GAVI has disbursed US$ 3.6 billion to 70 countries (from 2000 to March 2012)

http://www.gavialliance.org/index.aspx


MDGｓ & Impact Investment Bonds

Impact Investment Bond

MDGs

Mic

rofin

ance

Educ

atio

nin

Afri

caVa

ccin

eW

ater

Gre

en

Clim

ate Tsun

ami

Reco

nstru

ctio

n Fu

nd

Goal 1: Eradicate extreme poverty & hunger ◎ ◎ ○

○ ◎ ○ ○

◎ ○ ○ ○

◎ ◎

○

◎ ◎

○ ◎ ◎ ◎

○ ○ ○ ○ ○ ○Goal 8: Develop a global partnership for development

Goal 5: Improve maternal health

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 1: Eradicate extreme poverty & hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equity and empower women

Goal 4: Reduce child mortality rates


Daiwa Asset Management

■ ￥9.1 trillion Financial assets under management (as of Mar. 2012)■ Eco Funds, SRI Funds and etc.■ As a PRI signatory, considering ESG issues■ Implementing SRI in daily asset management.

e.g. Investment Principles against Cluster Munitions Producers The Japanese government ratified the Convention on Cluster Munitions (Oslo Declaration), which takes effect

on August 1, 2010. As an asset management company in the country ratifying the convention, Daiwa Asset Management established the basic principles for investment in, and other actions against, cluster munitions producers, and would like to announce the basic principles as follows:http://www.daiwa-am.co.jp/english/cluster/index.html

Daiwa Asset Management shall not invest in securities issued by cluster munitions producers in active funds. In cases where the active funds hold such securities, Daiwa Asset Management shall immediately sell the securities.

In cases where withdrawal from, or contraction of, the business for producing cluster munitions is proposed at shareholders’ meeting of cluster munitions producers, Daiwa Asset Management shall agree with such shareholders’ proposals.

http://www.daiwa-am.co.jp/english/cluster/index.html


■ Major Characteristics

The first microfinance mutual fund in Japan.

Minimum investment unit is 1,000 yen, you can pursue both social and financial return.

Lending to MFIs in local currency. (currency risk free funding for MFIs ）

Daiwa Microfinance Fund (DMF)


Key Findings1. DMF lends 64 million USD to 21ＭＦＩs

(Its lending rate is 11％ on average. The term is 2years)2. Total loan portfolio of 21 MFIs is 3 billion USD.

(DMF lending counts 2% of the loan portfolio) 3. 21 MFIs outreaches to 2.6 million people 4. DMF lending supports 79,630+α. 5. Average loan per person is 806 USD.

Impact by Daiwa Microfinance Fund

DMF supports 80,000 people in developing countries to pursue self-sustaining.

(As of March 2012)


http://www.daiwatv.jp/http://www.daiwatv.jp/

Forum & Daiwa Internet TV

▼Forum play back at Website

http://www.daiwatv.jp/

http://www.daiwatv.jp/


Investor Forum for SRIDaiwa Africa Forum 2010

Date: July 21st, 2010

Venue: GranTokyo North Tower 18F Conference Room

Speaker: Mr. Thierry de Longuemar, Vice President Finance, African Development Bank (AfDB)

Mr. Pierre Van Peteghem, Treasurer, AfDB

Dr. Boukary Savadogo, Manager of the Division of Education, Science and Technology, AfDB

Dr. Naoyuki Kawahara, Director, NPO Rocinantes

Ms. Keiko Sano, Director, East Africa Division 2, Africa Department, Japan International Cooperation Agency

Ms. Agnes Chan, the ambassador of the Japan Committee for UNICEF, a pop singer, a television personality

No. of Audience: 221


http://www.dir.co.jp/souken/research/esg/index.html

ESG Research by DIRDaiwa Institute of Research (DIR) has been providing highly distinctive information services, consulting and system solutions since its establishment in 1989.

http://www.dir.co.jp/souken/research/esg/index.html


2. Social Engagement

■Participating in ESG Initiatives

Principles for Financial Action for the 21st Century

GC (UN Global Compact）

PRI （Principle for Responsible Investment）

UNEP FI （UNEP Finance Initiative）

CDP （Carbon Disclosure Project）


・Finance Park at Shinagawa ↑・Workshop for teachers at Daiwa’s Tama Training Centre →

3. Corporate Citizenship

■Partnership with NPOs for Financial Capabilities


■Real business as a result of partnership with ＮＰＯ/ＮＧＯs

3）Daiwa Phoenix Japan Grant Program (Nippon NPO Center)In order to strengthen capacity of NGOs in Tohoku disaster areas after 3.11 (2011), we support them for personnel expenditure (instead of program cost) aiming at nurturing leaders for the core of the organization. This 5 year program is made possible by donations from management fee of Daiwa Nippon Support Fund Vol.3. (or Phoenix Japan Fund)

2）Daiwa Securities Group Tsunami Reconstruction Fund（Asia Community Center 21）

From 2005 (after appeal from the UN), for the next 10 years, we committed total 100 million yen grant for reconstruction assistance to NGOs in devastated areas (India, Sri Lanka, Indonesia). A part of grant is used as a source for Microfinance.

(In the brackets are the name of NGO/NPO)

Corporate Citizenship

1）Social Business College（Kopernik）

This is a seminar series on social entrepreneur for social business practice, held bimonthly since Oct. 2010 (12 lectures in 2 years), not only for university students but also for common people. The college is funded by grant from Daiwa Eco Fundmanagement fee. Its contents can be found in the web.


CSR Management - Work-life Balance

■Creating a working environment that fit the life stage

1. Work-life balance promotion committee

2. Enforcing leaving the office by 19:00 → Efficiency at work “Work hard, Live hard”

3. 「Professional Return Plan」・4. 「Changing of Work Location

System」5. ‘Child-rearing break’ until 3

years old, exceeding the statutory period

6. 「Day-care expenses subsidy system」

7. Distributing 「Guidebook for Childcare」

Work-life balance promotion intranet site for employees


Disclosure

■Annual Report ■CSR Report

ProactiveFairPrompt

Financial Non-financial

Clear understandingProper Evaluation

■To Stakeholders

http://www.daiwa-grp.jp/english/index.cfm

Daiwa Securities Group

http://www.daiwa-grp.jp/english/index.cfm


External Appraisal

■Evaluation on ESG / CSR SRI index constituent

■Ranking for Work Place

Dow Jones Sustainability Indexes (14 consecutive years)

FTSE４Good Index (7 consecutive years)

NIKKEI Most Famous Companies for Job Seekers (2009)Rank 5 for Financial Institution (Rank 1 for Securities Industry)

NIKKEI Woman (2011) Best 100 Companies with friendly working environment for women Rank 1 for Financial Institution (Rank 3 for general category)


Conclusion

1. A financial institution has a social calling to serve as a mediator between asset management and financing for public and private sectors.

2. While acknowledging environment, social and governance issues, harmony amongst various stakeholders is required to develop a sustainable society in the 21st century onwards.

3. Daiwa Securities Group is implementing its mission by leveraging financial capabilities.


Contact ：Corporate Communication Departmente-mail：[email protected]

Tel:03-5555-1312 Fax:03-5555-0662

mailto:[email protected]


Appendix

This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.


The Triple Bottom Line

経済(Profit/Governance)

人間社会

(People/Society)

地球環境

(Planet/Environment)

企業・団体(Enterprise)

【【PPPPPP】】【【ESGESG】】


Guidance on Social Responsibility, provides harmonized, globally relevant guidance for private and public sector organizations of all types based on international consensus among expert representatives of the main stakeholder groups,.

What will ISO 26000 achieve? It will integrate international expertise on social responsibility –will be a powerful SR tool to assist organizations to move from good intentions to good actions.

Source: ISO Web site . Japan Business Federation Political Sociology Division 2010.6.10「Summary of Result of Copenhagen Conference ISO260000」

ISO 26000 （Publish in Nov. 2010）

1. Accountability 2. Transparency 3. Ethical behavior 4. Respect the interest of stakeholders 5. Respect the rule of law6. Respect the international code of

conduct7. Respect the human rights

7 Code of Conducts

1. Administration of the organization2. Human rights3. Labor practice4. Environment 5. Fair business practice6. Consumer issues7. Community participation and

development

7 Core Subjects

From CSR to SR


No-financial return

Private

Public

Donation

Grant Aid Yen Loan

Investment

Financial return*

Funding type for Development

*Possible for negative return due to exchange fluctuations and credit risk and so on.


Money flows to developing countries

•Source: THE WORLD BANK Migration and Development Brief 18.•Data on FDI, external private debt, and net inflows of portfolio equity are from the World Development Indicators database. •ODA data is from OECD DAC. Remittances data is from world bank, IMF

Remittances and other flows to developing countries, 1990-2014

332

127


Issuer: IFFImPurpose: Raise funds in the capital markets to accelerate funding available for health and immunization

programmes in 70 of the developing countries around the world.

Issue date and amount:Mar. 19, 2008 $211 million equivalentFeb. 20, 2009 $437 million equivalentMar. 24, 2010 $338 million equivalentMar. 31, 2011 $227 million equivalent

Highlights of “Impact Investment Bonds”

Vaccine Bond

Issuer: IFCPurpose: Support microfinance businesses with the purpose

of fostering economic independence by providing small scale financial services to the poor segments.

Issue date and amount:Nov. 20, 2009 $275 million equivalentSep. 22, 2010 $342 million equivalent

Microfinance Bond

Issuer: IBRD

Purpose: Support projects in the World Bank’s member countries that meet specific criteria for low-carbon project.

Issue date and amount:

: February 3, 2010 $106 million equivalent

Green Bond

Issuer: ADB

Purpose: Support water project by developing countries inAsia and the Pacific.

Issue date and amount

April 16, 2010 $628 million equivalent

Feb. 22, 2010 $270 million equivalent

Water BondInvestorsInvestment

in capital market

Financial management

Funding

Support for vaccine securing program

DonatorDonation for up to

20 years

Daiwa Securities joined the panel with GAVI on the 8th plenary session of the Leading Group on Innovative Financing for Development (16-17 Dec 2010, Tokyo)


Impact Investment Bond Uridashi

Total $5,338 mil / Daiwa’s arrangements $ 3,721 / Daiwa’s market share 69%


Impact investment bond Private Placement to Regional Banks

Impact Investment type bond Private Placement (Publicly announced)Investor Issuer Currency Name Lead Manager Press Release

The Iyo Bank, Ltd.World Bank

(International Bank for Reconstructionand Development, IBRD)

USD Green Bond 50 mil USD J.P. Morgan Securities Ltd. 2010/9/1

The San-in GodoBank, Ltd.

World Bank(International Bank for Reconstruction

and Development, IBRD)AUD Green Bond 30 mil AUD J.P. Morgan Securities Ltd. 2010/11/16

The Bank of Iwate,Ltd.


and Development, IBRD)USD Green Bond 10 mil USD

Daiwa Securities CapitalMarkets Co. Ltd.

2010/12/1

The Kiyo Bank,Ltd.




2010/12/24

The Aichi Bank,Ltd.


and Development, IBRD)USD Green Bond 30 mil USD J.P. Morgan Securities Ltd. 2011/1/14

The Kagawa Bank,Ltd.




2011/1/19

The Fukui Bank,Ltd.




2011/1/24

The Daishi Bank,Ltd.




2011/1/24

THE NISHI-NIPPONCITY BANK, LTD.

Asian Development Bank（ADB）

USD Water Bond 30 mil USDDaiwa Securities Capital

Markets Co. Ltd.2011/1/26

The San-in GodoBank, Ltd.


and Development, IBRD)USD Green Bond 30 mil USD J.P. Morgan Securities Ltd. 2011/2/17

North Pacific Bank,Ltd.




2011/2/18

The Nanto Bank,Ltd.




2011/2/25

The Oita Bank, Ltd.World Bank


USD Green Bond 10 mil USDDaiwa Securities Capital


The MusashinoBank, Ltd.




2011/4/19

Ogaki KyoritsuBank, Ltd




2011/6/14

Kagoshima Bank,Ltd.

Asian Development Bank（ADB）

USD Water Bond 10 mil USDDaiwa Securities Capital


Waseda UniversityWorld Bank


AUD Green Bond 10 mil AUDDaiwa Securities Capital


Chiba Kogyo Bank,Ltd.




2012/2/1

(As of April 30, 2011) Source: Daiwa Securitiess Product Planning Department

Issue Amount


May 15 (Sat) May 15 (Sat) –– June 13 (Sun), 2010 June 13 (Sun), 2010

＠＠Tokyo MidTokyo Mid--Town Design HubTown Design HubHost: Host: Committee for Committee for ‘‘Imagine Imagine another Life through the another Life through the ProductsProducts’’,, CANPANCANPAN CenterCenter

Special Sponsor: Special Sponsor: Daiwa SecuritiesDaiwa Securities

October 31 (Sun) October 31 (Sun) –– November 7 (Sun)November 7 (Sun)

＠＠Osaka International Convention CenterOsaka International Convention Center

Host: Junior Chamber International (JCI)Host: Junior Chamber International (JCI)Sponsor: Daiwa SecuritiesSponsor: Daiwa Securities・・ Running a booth at Running a booth at ‘‘Future ExpoFuture Expo’’, ,

・・ Panelists for sectional meetinganelists for sectional meeting

Event Sponsorship


Source： Daiwa Microfinance Fund prospectus

(available only in Japanese)

*Developing World MarketsLoan users

（BOP

）

Taking Currency risk, Interest rate risk and Credit risk Managing risks by deversifying portfolio

Pursuing financial return as well as social return

Daiwa Microfinance Fund

■Investment Universe ■Model Portfolio

Reviewed by DWM*300 MFIs

Over 10,000 MFIs

(E) Return


■ Daiwa Microfinance Fund Loan　Portfolio　Financial return　＆　Impact 基準日（as of ) 2012/3/31

Name of MFICountrry/Currency

Gross Loanportfolio

Yield ongross

portfolio(nominal)

Ｎumber ofborrowers

Ａverageborrowing

Write-off %

Ａmountlennding from

DMF

Ｌendingrate

DMFcontribu

shion

Ａnnualrevenue to

DMF

Ｉmpact ｂｙDMF

Term

1 Access Bank Azerbaijani manat 378,073,808 32.9% 119,501 3,164 0.0% 4,000,000 8.5% 1.1% 340,000 1,264 2.02 AzerCredit Azerbaijani manat 41,693,473 41.1% 47,232 883 0.0% 863,000 10.5% 2.1% 90,615 977 1.53 FORUS Russian Ruble 40,557,007 38.4% 9,645 4,205 8.1% 2,000,000 11.5% 4.9% 229,400 476 2.64 Inicjatywa Mikro Polish Zloty 10,200,000 (2009)19.6% 1,769 4.3% 143,000 9.4% 1.4% 13,499 2.35 PRASAC Thai Baht 151,954,229 23.8% 125,127 1,214 0.0% 370,000 8.6% 0.2% 31,746 305 2.06 TPC Cambodia Riel 33,311,940 31.0% 96,542 345 1.7% 2,000,000 13.2% 6.0% 263,000 5,797 2.27 Ujjivan Indian Rupee 113,473,518 29.4% 762,923 149 0.2% 5,600,000 13.1% 4.9% 734,720 37,584 1.88 Camesa Mexico Mexican Peso 63,558,332 na 290,820 219 6.4% 600,000 10.8% 0.9% 64,500 2,740 1.39 NBD Bank Russian Ruble 275,400,000 na 3,241 0.6% 10,200,000 11.3% 3.7% 1,148,520 2.3

10 FINCA Russia Russian Ruble 22,116,000 39.0% 8,023 2,757 3.6% 1,560,000 11.5% 7.1% 178,932 566 2.611 Banco Popular (Bancovelo) Honduras Lempira 44,439,495 20.1% 14,553 3,054 4.6% 1,148,000 11.8% 2.6% 134,890 376 1.412 Crear Arequipa Peruvian Nuevo Sol 748,676,221 35.0% 212,844 3,517 1.4% 7,000,000 9.6% 0.9% 668,500 1,990 2.313 FINCA Azerbaijan Azerbaijan 117,207,401 43.1% 119,867 978 0.1% 10,000,000 10.0% 8.5% 1,000,000 10,225 1.314 Genesis Guatemala Quetzal 65,057,180 (2007年）44.9% 129,744 501 2.0% 2,345,000 9.5% 3.6% 222,775 4,681 1.615 MFW Jordanian Dinar 20,639,344 37.7% 57,334 360 1.2% 2,000,000 7.0% 9.7% 140,000 5,556 0.816 Xac Bank Mongolia Touguruku 263,594,653 19.9% 75,736 3,480 0.1% 7,024,000 12.0% 2.7% 842,880 2,018 1.217 EDPYME Solidaridad Peruvian Nuevo Sol 33,116,001 （2011年）35.6% 21,691 1,527 2.2% 555,000 10.5% 1.7% 58,275 363 2.018 Coocique Costa Rica Colon 110,800,000 na 17,072 4,051 0.4% 2,975,000 12.8% 2.7% 379,313 734 2.119 Bank Andara Indonesian Rupiah 18,200,000 na 165 0.0% 299,000 10.3% 1.6% 30,648 0.720 EDPYME Raiz Peruvian Nuevo Sol 166,338,585 （2011年）30.4% 87,876 1,893 3.0% 501,000 10.5% 0.3% 52,605 265 1.121 Popayan Colombian Peso 330,133,610 （2011年）36.3% 408,570 808 2.7% 3,000,000 9.2% 0.9% 277,200 3,713 1.9

total 3,048,540,797 2,610,275 806 64,183,000 10.8% 2.1% 6,902,017 79,630+α 1.8total-4-9-19 2,744,740,797 2,605,100 672 53,541,000 10.7% 2.0% 5,709,351 79,630 1.7

80,000 poverty alleviation

DMF Pursues Financial and Social return.


MFI Interest Yield to borrowers

35.1

28

44.3

25.5

34.536

26.128.2

23.9

32.6

20.9

31.7

24.826.2

0

5

10

15

20

25

30

35

40

45

50

World Africa EAP ECA LAC MENA SouthAsia

％ o

f G

ross

Loan

Port

folio

2003

2006

Saurce: OCCASIONAL PAPER No. 15 , February 2009 The New Moneylenders: Are the Poor Being Exploited by High Microcredit Interest Rates?Note: Total Interest and Fee Income/Average Total GLP: average of 175 sustainable MIX MFIs, weighted by loan portfolio.


Myth & Fact of Microfinance

Myth Fact

1 Poor people do not repay a loan.Customer continue to repay as long as they value theservice. The greatest incentive for the poor to repay theloan is to access to repeat loans.

2Poor people can not pay the interest ratesnecessary to cover the costs to delivering theservice. Poor can not pay the price.

The poor willing to pay the cost for quality services.For the poor, access to the financial service is moreimportant than the price.

3 Credit for consumption purposes should neverbe provided.

Economic shock is frequent and diverse for the poor.They should prevent selling income generating assets tocoop with these risks by microfinance

4 Microfinance creates economic opportunity. The borrower or user of MF create opportunity. Onlypeople with economic opportunity can benefit from credit.

5 Poor can not save the money. Poor people do saving. Saving is more important thanborrowing for the very poor to manage their future.

6 MFI can reach to the very poorest of the poorthrough credit.

Debt financing is not a good development tool for thedestitute.

7 MFI is donor dependent institutions.There are over 600 Financially self sufficient (FSS) MFIs.FSS is necessary for an MFI to reach large numbers ofpeople

Source: Microfinance Distance Learning Course (UNCDF)


MF potential market size 2.7 billion


MFI Loan Portfolio ＄65.0billion （ MIX、FY2009、1,058ＭＦＩｓ）

Source ：ＣＧＡＰＦｏｃｕｓＮｏｔｅ No. 70 April 2011, Cross-border Funding of Microfinance* Amounts based on data submitted by 61 funders and 90 MIIs.

$21.3 billion* (2009)

Cross-border funding to MFIs

Public donors and Investors

(Multilaterals, Bilaterals, DFIs)

$14.6 billionMicrofinanceInvestment

Intermediaries(MIIs)

Private donors and Investors(Foundations,

Institutional andIndividual Investors)

$6.7 billion

Apex & other Intermediaries

(Support for microfinance at all levels of the financial system: retail, market infrastructure, and policy)


Towards the End of Poverty in 2025

Assumptions

5% Inflation p.a. for nominal,

23% increase p.a. in loan users to fulfill 2.7 billion needs.


Foreign Equities Focus on theenvironmental technology of each

nationCreator：Russel Investment

Formulated：May 1st, 2008（Unlimited term）

As of April 28th, 2011

Basic price：8,560円 Total net asset：143億円

●●Daiwa Eco FundDaiwa Eco Fund●●Daiwa SRI FundDaiwa SRI Fund

SRI Products :Mutual funds

●●Environmental Business Fund for Environmental Business Fund for Next Generation Next Generation

Domestic EquitiesEconomy & Ecology

Creator：Daiwa SB Investment

Formulated：Feb. 27th, 2009

（Redemption date：Feb. 26th, 2014）


Basic price：9,840円Total net asset：10.13億円

Domestic Equities

Economy & Ecology

Creator：Daiwa Asset Management

Formulated：March 9th, 2006

（Redemption date：Feb. 22nd, 2016）



●●RusselRussel World Environment World Environment

Technology FundTechnology Fund

●●Daiwa Energy Technology FundDaiwa Energy Technology Fund

Domestic Equities

Focus on alternative energy which

global demand is estimated to increase


Formulated：Dec. 25th, 2008

（Redemption date：Jan. 14th, 2014）



Domestic Equities

Focus on integrity & transparency of the enterprise


Formulated：May 20th, 2004

（Redemption date：May 9th, 2014）



SRI Funds distributed by

Daiwa SecuritiesTotal net asset of 15 products￥92.8Billion


■■Pondering Pondering CSRCSR through dialoguethrough dialoguehttp://www.daiwahttp://www.daiwa--grp.jp/csr/dialoguegrp.jp/csr/dialogue/

In the CSR website, you can find series of dialogue with key figures who play an active role in the front lines of each field.

No. 26 “Cluster Bombs”

＜＜Recent themes:Recent themes:＞＞

No. 38No. 38：：Tsunami Reconstruction SupportTsunami Reconstruction Support （（20112011年年55月月1212日）日）

－Increasing true self-alliance－

No. 37No. 37：：Affordable Energy Saving at Work Place and HomeAffordable Energy Saving at Work Place and Home （（20112011年年44月月2727日）日）

－Smart energy saving by knowing the mechanism of devices and climate－

No. 36No. 36：：PovertyPoverty （（20112011年年22月月22日）日）

－’Support’ for young homeless, instead of ‘care’－

No. 35No. 35：：Eco RightEco Right （2011年1月27日）

－Through CDM, supporting environmentalpreservation from finances －

NO. 34NO. 34：：MicrofinanceMicrofinance （2011年1月26日）

－Aiming at social contribution throughmicrofinance－

NO. 31NO. 31：：BiodiversityBiodiversity （2010年9月9日）

－Building an aquarium in the town thatgives a feeling of ‘water’

CSR DialogueDialogue

June 8,2010

http://www.daiwa

http://www.daiwa

Keio BS　20121024　Daiwa

Documents

Transcript of Keio BS　20121024　Daiwa

Keio BS 20121024 Daiwa

Documents

Transcript of Keio BS 20121024 Daiwa

Keio BS　20121024　Daiwa

Transcript of Keio BS　20121024　Daiwa