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1 Moving One Step Ahead passion for the best

2 Passion for the Best 2011

3 Contents CEO& Passion for the Best CEO 15 Passion for the Best & CSR

4 daiwa securities group annual report % SMBC SMBC SMBC 100% SMBC SMBC IT

5 Organizational, Capital and Earnings Structures of the Daiwa Securities Group (100%) (60%) (100%) (44%) (100%) (46%)* (100%) SMBC SMBC (40%) (44%) (40%) T. 10% 2% SMBC * % ,

6 daiwa securities group annual report 2009 US [1] 216, , , , ,881 $ 2,131 [2] 151, , , ,361 40, [3] 12,763 21,539 32,818 19,160 (79,478) (811) 105, , , , ,664 1,965 33,641 44,809 46,968 50,053 50, , , , , ,936 4, , , , , ,034 1,796 25,228 34,729 36,299 38,147 38, , , , , ,544 2, , , , , ,270 3, , , ,391 83,632 (143,726) (1,466) 120, , ,415 90,143 (141,150) (1,440) (2,285) 4,196 (468) (1,681) (20,068) (204) 112, , ,923 81,951 (163,794) (1,671) 40,167 78,068 69,451 40,774 (18,174) (185) (19,771) (40,340) (23,747) 5,234 60, , ,948 92,725 46,411 (85,039) (867) 1 US (63.16) $(0.63) US$ [1] [2] [3] M&A SMBC SMBC ROE ROE

7 Financial Highlights US , , , , ,164 $ 6, , , ,737 1,221, ,095 6,929 [1] 5,348,916 6,274,506 6,814,612 6,206,327 5,413,526 55,240 [2] 5,242,320 6,162,243 5,082,219 7,857,122 6,203,742 63,303 [3] 142, , , , ,770 5,262 21,916 29,488 25,680 31,348 20, , , , , ,962 2,601 (97,300) (105,753) (111,054) (106,711) (104,760) (1,068) 345, , , , ,846 4,406 12,378,962 14,898,692 14,411,265 17,307,120 14,182, ,720 3,445,867 3,176,443 3,159,490 4,207,399 2,766,624 28, , , , , ,346 6,564 [1] 3,877,731 4,744,007 5,159,100 6,238,684 4,893,262 49,931 [2] 3,658,544 4,879,189 4,105,362 4,643,644 4,809,093 49,072 98, , , , ,508 1,158 5,650 7,025 7,897 8,017 4, ,541,436 13,869,891 13,188,039 16,224,196 13,230, , ,223,226 1,082, ,329 9,717 1 US$ $ [1] [2] [3] SMBC SMBC 20,000 15,000 12,378 14,898 14,411 17,307 14,182 1, , , = + 5

8 daiwa securities group annual report 2009 CEO Moving One Step Ahead Passion for the Best

9 Message From the CEO SMBC Passion for the Best CEO 7

10 daiwa securities group annual report 2009 CEO Passion for the Best Passion for the Best CEO Question SMBC A: , Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

11 Interview With the CEO Question 2 A: M&A IPO Institutional Investor /3 00/3 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 9

12 daiwa securities group annual report 2009 IT 10 Question 3 Passion for the Best 2011 A: 3

13 Interview With the CEO Question 4 A: 3 M&A M&A 11

14 daiwa securities group annual report 2009 M&A M&A Question 5 A: ,000 ROE 10% 40 & 1,

15 Interview With the CEO SMBC 30 Question 6 CEO A: CEO

16 daiwa securities group annual report 2009 Question 7 A: SMBC SMBCSB SMBC SMBC10 14

17 Overview of the Group s New Medium-Term Management Plan Passion for the Best Passion for the Best Passion for the Best GDP 0.6% TOPIX 1, , M&A M&A IN OUT M&A 15

18 daiwa securities group annual report Product RM Relationship Management Execution Product RM Execution 4. Passion for the Best ,000 ROE 10% 40 SMBC & 1,

19 Overview of the Group s New Medium-Term Management Plan 5. 1 Passion for the Best 2011 No IT IT IT IT IT 17

20 daiwa securities group annual report SMBC CEO CEO COO SMBC SBCM SMBC SMBC 2007 COO SMBC SMBC SMBC SMBC SMBC SMBC 2009 SMBC SMBC HD 3BI

21 Top Management SBCM SMBC SMBC SMBC 2006 HD 2008 HD BI SMBC 2005 CFO CFO CFO CIO HD (CIO) SMBC SMBC SBCM SMBC

22 daiwa securities group annual report SMBC 36 SMBC 38 SMBC

23 Review of Operations TOPIX 300 3, , IT 1, TOPIX IT

24 daiwa securities group annual report 2009 M&A 3,500 3,000 2,500 2,000 1,500 1, IN INM&A IN OUTM&A OUT INM&A % ,410 1, G711G TOPIX WTI LIBOR TOPIX

25 Review of Operations CB WB Q , UFJ M&A3.6% 1, % 2, JP 9 10 UFJ 90 UFJ 23

26 daiwa securities group annual report TOPIX , % FX , , ,027 74,477 71,026 18,396 43,468 41,009 9, , , , , , ,662 ROE 17.6% 16.2% 4.0% 31.4% 39.8% 45.0% 24

27 Review of Operations 20081, % % % 2008 Passion for the Best ,200 e * 1 ATM SMA SAT FX PTS * IVR* 3 30* 4 *1 *2 100 *3 Interactive Voice Response *4 1 25

28 daiwa securities group annual report 2009 No.1SMA IT Passion for the Best IT5 IT 30 % Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q SMA LMS 26

29 Review of Operations Moving One Step Ahead + CSR CO World CO2L Bond CER * CER CER IFFIm GAVI IFFIm IFFIm IFFIm GAVI CER 20 CER CER * Certified Emission Reduction 27

30 daiwa securities group annual report SMA SMA No.1 FX PTS ,200 IT PTS 500 A A 10 28

31 Review of Operations 3,000 1,200 2,500 1,000 2, , , /6 05/9 05/12 06/3 06/6 06/9 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 0 FX 3, , , /3 06/6 06/9 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 0 SMA ,000 12,000 10,000 8,000 6,000 4,000 2, /6 05/9 05/12 06/3 06/6 06/9 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 1SMASMA

32 daiwa securities group annual report 2009 & SMBC60% 40% & IPO M&A SMBC M&A 2008 SMBC 199 1,819 1,6741,688 1,449 1,391 2 M&A SMBC , ,954 (19,989) 92,866 1,431 (167,468) 51,945 (5,836) (144,958) 10,448,648 13,881,604 11,137, , , ,978 ROE 8.5% 6.5% 4.4% 4.8% 30

33 Review of Operations Passion for the Best 2011 SMBC SMBC 3 3SMBC OTC IPO No.1 SMBC SMBC 2008 M&A/ M&A/ UFJ 18.1% 40.0% 2 SMBC 17.5% SMBC 18.7% FG % UFJ 9.3% SMBC % UBS 7.0% SMBC % 6.2% MUFG SMBC M&A 2008 M A * SMBC GCA Bank of America Merrill Lynch * / 31

34 daiwa securities group annual report 2009 Moving One Step Ahead M&A Passion for the Best 2011 M&A 4 M&A CBCF SMBCM&A Close Brothers Corporate Finance (Holdings) LimitedCBCF Close Brothers Group plc CBCF M&A Thomson One Banker, mergermarket CBCF M&A SMBC SMBC M&ACBCF M&A SMBC CBCF 4 M&A SMBCM&A Sagent Advisors M&A M&A CBCF 4 M&A M&A CBCF 32

35 Review of Operations SMBC SMBC SMBC SMBCSMBC SMBC SMBC 150 SMBC Passion for the Best SMBC 4 M&A 4 SMBC 33

36 daiwa securities group annual report 2009 SWF M&A4 M&A No.1IFR M&A IFR Yen Bond House of the Year CB M&A CB 1,500 1,035T&D 610CB 350 4,0003,800 2,860 1,600 KDDI 1,2001,2001,000 1,8301, China Taisan Technology Group Holdings Limited IPO 43 S 9 113, ,969 1,014SMBC () SG 34

37 Review of Operations SMBC SMBC SMBC 30% 15% 35

38 daiwa securities group annual report 2009 SMBCSMBC PI SMBC 100% SMBC PI SMBC PI Neo Solar Power CorporationSOMA Networks, Inc SMBC PI SMBC PI3 4,

39 Review of Operations 2008 SMBC PI ( /3 06/3 07/3 08/3 09/3 Passion for the Best CEO SMBC PI Daiwa Quantum Capital Partners I 2,000 SMBC PI 51% 49% % 30% 300 SMBC PI LP30% 37

40 daiwa securities group annual report 2009 SMBC SMBC SMBC % SMBC DS Capital Bridge Fund, L. P ,772 1,588 SMBC SMBCTOB TOB SMBC

41 Review of Operations REIT , , % % ETF 1 1 ETF3,059 4,038 1 NIKKEI NET QUICK ,933 83,079 68,157 13,015 17,494 11, ,659 10,665 6, ,666 9,710 7,594 6,388 6,503 4,602 3,277 3,206 2,992 39

42 daiwa securities group annual report 2009 QFII * A A 2008 TOPIX 17 Passion for the Best * Qualified Foreign Institutional InvestorsQFII A ,400 3ETF ETF % 0 04/3 05/3 06/3 07/3 08/3 09/ Q Q F Q F Q /3 03/3 04/3 05/3 06/3 07/3 08/3 09/

43 Review of Operations Moving One Step Ahead Banco Itaú Holding Financeira S.A. BRICs , 09, 10, Banco Itaú Holding Financeira S.A. Praca Alfredo E S Aranha 100 Parque Jabaquara Sao Paulo, Brazil Roberto Egydio Setubal / CEO & President *1 1, *2 *1 BOVESPA *2 ANBID 41

44 daiwa securities group annual report 2009 Passion for the Best ,000 2, ,000 1,034 1,127 1,313 1,521 1,656 1,775 1,715 1,674 1,499 1,574 1,427 1,143 1, /3 06/6 06/9 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3

45 Review of Operations 6 R&I T %2948.1% , , % 2008 DC R&I

46 daiwa securities group annual report 2009 Passion for the Best ,000 6, ,000 4,000 3,000 2,000 1, , , , , ,070 1,350 4, ,379 3, , /3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 44

47 Review of Operations % BI2 BI SMBC IT 3 1, % % 21 3 Institutional Investor 2009 All-Japan Research Team 1 Passion for the Best , ,307 3 UFJ 10,942 4 UBS 9, ,028 6 JP 8, , , , ,267 Institutional Investor 2009 All-Japan Research Team UBS JP 14 7 UFJ

48 daiwa securities group annual report IPO 3 4 IT 46

49 Review of Operations BI IT 2 BI 3 IT BI IT Financial Plate IT BI BI 47

50 daiwa securities group annual report 2009 CSR CSR CSR UNEP FI *1 PRI *2 CDP *3 * 1 United Nations Environment Programme Finance Initiative UNEP FIUNEP 1992 * 2 Principles for Responsible Investment UNEP FI ESG * 3 Carbon Disclosure Project CSR * SMBC * IFFIm GAVI SRI 48

51 CSR Initiatives NPO NGO SRI SRI NPO JFS NPO SRI SAMSRI Dow Jones Sustainability World Index DJSI World FTSE FTSE4Good Index 49

52 daiwa securities group annual report IT

53 Group Governance and Management Systems q. a q. a. 51

54 daiwa securities group annual report 2009 q.? a. 1,

55 Group Governance and Management Systems * * , NY J.P A.T A.T CPA UNO OFFICE

56 daiwa securities group annual report IT ITIT 54

57 Group Governance and Management Systems % ROE SMBC 3 CEO

58 daiwa securities group annual report IT

59 Group Governance and Management Systems

60 daiwa securities group annual report SMBC

61 Group Governance and Management Systems SMBC SMBC SMBC 59

62 daiwa securities group annual report 2009 SMBC IR CFO CIO SMBC SMBC PI 60

63 VaR Group Governance and Management Systems 99% 1 VaR 99% 1 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/

64 daiwa securities group annual report ,

65 Group Governance and Management Systems IR 63

66 daiwa securities group annual report 2009 SMBC SMBC 1 64

67 Group Governance and Management Systems Passion for the Best Passion for the Best , ,386 * 5, *SMBC 65

68 daiwa securities group annual report 2009 IT IT IT IT SMBC IT IT IT IT IT IT IT IT 66

69 Group Governance and Management Systems ISMS PlanDo CheckAction ISMS IT e Passion for the Best 2011IT IT» IT ITIT» IT IT»» IT IT IT ,

70 daiwa securities group annual report 2009 IR CSR IR IR IR IR 68

71 Group Governance and Management Systems * IR CEO * 1 IR IR FACT SHEET IR * 1 * 2 69

72 daiwa securities group annual report % SMBC FP

73 Group Governance and Management Systems CEO CWO Chief Work-life-balance Officer SMBC , , CEO

74 daiwa securities group annual report WOMAN UFJ UFJ UFJ UFJ UFJ

75 The Daiwa Securities Group Financial Figures Section

76 daiwa securities group annual report US$ , , , , ,936 $ 4, , , , , ,881 2, , , , ,361 40, ,763 21,539 32,818 19,160 (79,478) (811) 105, , , , ,664 1,965 33,641 44,809 46,968 50,053 50, , , , , ,544 2, , , ,391 83,632 (143,726) (1,466) 120, , ,415 90,143 (141,150) (1,440) 112, , ,923 81,951 (163,794) (1,671) 52, ,948 92,725 46,411 (85,039) (867) US$ 1 12,378,962 14,898,692 14,411,265 17,307,120 14,182,579 $144, , , , , ,770 5, , , , , ,202 1, , , , , ,804 2, , , , , ,296 7, ,223,226 1,082, ,329 9,717 1 US$ (63.16) $(0.63) % ,243 12,561 13,264 14,456 15,224 FA (948) (1,055) (917) (721) (559) 1. 1US$= = 4. =+ 74

77 The Daiwa Securities Group in Figures , ,217 98,987 84,593 56,402 81, ,262 97,062 82,487 54,809 1,968 1,955 1,925 2,106 1,593 4,264 3,202 2,667 2, ,640 82, , ,377 97, ,688 41,799 37,210 39,342 17,968 11,779 17,994 33,667 49,332 41,531 14,014 22,275 35,711 47,238 36,947 71,170 82,735 74,986 47,551 34,915 44,659 54,066 43,510 14,581 10,122 8,573 8,554 9,407 10,371 10,542 3,598 2,032 1,310 3, M&A 12,828 16,389 19,607 18,851 13,225 11,426 20,631 23,190 23,771 19,572 1,926 6,302 6,134 6,783 6,946 3,013 4,776 4,981 4,223 3,384 6,487 9,553 12,074 12,765 9, , , , , ,881 56, ,271 31,288 11,020 (25,737) 95, , ,045 92,341 66, , , , ,361 40, , , , , ,295 10,612 14,286 14,684 14,593 20,905 30,405 33,758 35,904 21,912 19,610 8,534 12,098 14,729 18,314 11, , , ,568 83,525 (143,960) 17 2,366 1,605 1,550 7,164 6,202 10,079 8,341 (5,035) (5,104) 1,753 3,626 3,878 3,597 (1,884) 10,078,853 12,239,143 10,808,697 14,307,375 11,452,445 2,098,376 2,807,087 3,372,712 2,990,598 2,293, ,192 1,145,934 1,238,352 1,260, ,624 62,560 72,881 81,732 80,659 72,782 * 1 24, ,057 74,477 71,026 18,396 SMBC 85, ,582 92,866 1,431 (167,468) 1,490 4,435 13,015 17,494 11,613 3 * 2 5,329 7,325 9,744 13,379 9,140 SMBC 32 4,800 4,233 (5,321) (5,895) * 1 * 2 75

78 daiwa securities group annual report TOPIX 1,641 1,584 1,621 1, ,842 2,315 2,576 3, (1,651) 1 (1,611) (2,483) (402) (412) 1,185 2,687 2, (68) (70) (8) 10% , , , ,138 67,858 67,110 90,278 81,489 26,593 19,534 23,621 28,323 6,678 12,559 25,093 9,737 10,624 7,846 8,380 11,668 23,961 27,170 33,182 31,760 35,234 37,833 37,219 47,044 11,602 7,058 6,159 7,997 83,400 88,361 98, ,258 9,542 11,388 10,688 15,348 78,166 83,870 92,834 99,373 7,381 8,629 8,024 12, , , , ,501 78,942 82,580 87,968 90,882 15,037 18,080 17,954 20,367 40,143 39,364 41,811 42,059 7,868 9,187 10,756 11,033 5,761 5,364 5,626 6,268 5,364 5,642 5,910 6,199 1,856 2,016 2,375 2,016 2,911 2,923 3,533 2,937 43,148 36,672 53,950 52,618 3,223 4,622 2, ,416 41,034 55,929 53, , , , ,377 46,143 40,065 55,850 43,862 23,118 17,008 26,754 25,842 76

79 The Daiwa Securities Group in Figures ,736 1,646 1,547 1,297 1,349 1, ,068 3,057 2,839 2,783 2,522 2,222 1,896 1,445 (1,182) 1,216 1,466 1,817 (101) 477 3,941 2,904 (1,949) 117 (875) 606 (468) (108) ,810 1,381 (499) (2,058) 2,274 (1,160) (2,786) (2,452) (36) (18) (23) , , , , , ,559 38,564 78,436 79,875 74,562 72,602 67,383 61,792 54,045 49,383 43,658 24,274 22,890 20,503 16,207 17,149 13,299 14,320 10,959 7,435 6,421 5,098 6,514 4,559 3,181 7,636 5,587 14,822 9,676 11,421 6,650 7,666 5,361 2,269 3,394 33,342 35,573 35,578 38,011 32,417 32,202 25,157 23,718 46,749 24,440 41,650 (9,479) 21,300 10,864 (22,849) 31,606 7,996 6, ,131 (1,007) (15,206) (37,478) (25,785) 105,893 95,909 87,242 69,377 69,748 69,129 37,525 16,259 13,468 10,489 13,239 12,855 13,541 12,726 11,983 12,696 99,362 92,357 83,894 64,169 62,343 64,161 34,774 14,754 10,551 7,791 10,136 9,668 10,006 9,301 9,372 9, , , ,427 70,431 93,026 58,096 (5,582) 54,003 93,619 91,660 92,288 86,290 88,446 89,293 83,606 81,923 20,301 23,071 20,432 21,592 18,013 17,842 15,380 14,782 44,335 38,823 41,038 32,464 37,120 35,605 35,331 33,542 8,958 9,804 9,709 10,286 11,082 11,505 10,566 10,549 6,855 7,474 7,557 7,990 7,836 7,686 7,460 7,174 6,368 6,810 7,262 7,605 8,252 8,384 8,767 10,186 2,102 1,792 1,741 1,693 1,816 1,505 1,657 1,575 4,698 3,883 4,546 4,657 4,324 6,763 4,444 4,112 50,449 19,902 29,138 (15,858) 4,580 (31,196) (89,189) (27,919) 4,129 1,823 2,274 1,419 4, ,256 1, , ,235 2,089 1,658 54,092 21,204 30,511 (15,664) 8,321 (31,525) (90,022) (27,923) 793 1, , , , ,015 (65) 9,663 3,029 5,585 9,535 10,913 54,672 20,239 30,796 (23,847) 5,754 (35,282) (98,913) (35,351) 27,335 14,739 17,264 (12,928) 5,885 (20,522) (53,039) (17,363) 77

80 daiwa securities group annual report * 1 46,890 48,376 50,507 53,256 26,820 26,926 27,914 28,797 9,986 10,757 11,135 12,967 6,777 7,094 7,710 7,979 3,306 3,598 3,747 3,511 * * 1 2,726 2,755 2,783 2,819 * 1 1,521 1,561 1,588 1,625 * 1 10,734 11,096 11,780 12,343 2,489 1,974 2,016 2, % 80.4% 78.0% 78.3% 2,394 1,842 1,880 2, % 63.3% 61.3% 62.0% * * 1 1,971 2,046 2,185 2, * 1 7,722 8,155 9,181 9,666 4,569 5,026 5,887 6,388 3,152 3,128 3,294 3,277 * 1 * 2 78

81 The Daiwa Securities Group in Figures ,675 54,338 53,032 47,038 50,195 45,878 40,472 39,122 29,056 27,349 25,213 21,844 23,215 20,484 18,030 17,066 12,907 13,761 13,876 13,164 13,577 12,386 11,679 12,259 8,814 8,721 8,761 7,820 8,223 7,316 5,912 5,806 3,895 4,506 5,181 4,208 5,178 5,691 4,849 3, (104) (81) (6) (124) 2,862 2,900 2,933 3,022 3,088 3,144 3,222 3,244 1,665 1,699 1,729 1,818 1,885 1,941 2,016 2,048 13,004 12,697 12,525 11,141 11,860 10,510 9,184 9,041 2,051 2,052 2,103 1,911 2,004 1,654 2,210 1, % 80.8% 82.6% 84.5% 84.9% 85.7% 84.5% 85.6% 2,069 2,008 1,948 1,548 1,809 1,273 1,328 1, % 65.5% 69.7% 73.4% 71.3% 73.4% 70.2% 73.0% ,004 1,072 1,107 2,606 2,563 2,534 2,334 2,585 2,348 2,185 2, ,144 10,712 10,547 9,710 10,172 9,306 7,764 7,594 7,584 7,361 7,138 6,504 6,893 6,080 4,754 4,602 3,560 3,351 3,409 3,206 3,278 3,226 3,010 2,992 79

82 daiwa securities group annual report , ,000 1, , , , , , /4 08/5 08/6 08/7 08/8 08/9 08/10 08/11 08/12 09/1 09/2 09/3 / % 4G 82, , , , , , , , , , , , % 19.1% 36.2% 35.0% 4.9% 80

83 Financial Section

84 daiwa securities group annual report GDP 13.5% GDP % 0.1% GDP % ,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ,000 2, ,

85 Financial Section , LIBOR G FRB % ,9951, , % 2, % % SMBC SMBC

86 daiwa securities group annual report , , % 61,792 54,045 49,383 43, ,361 40, % 21,300 10,864 (22,849) 31,606 19,160 (79,478) (1,007) (15,206) (37,478) (25,785) 18,639 16, % 7,405 4,967 2,751 1,504 11,906 12, % 3,535 3,425 2,610 3, , , % 93,026 58,096 (5,582) 54, % % % % Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

87 Financial Section ,593 56, % 17,321 13,424 14,508 11,147 2, % ,377 97, % 30,956 28,314 19,367 18,361 47,551 34, % 7,499 6,456 10,753 10,205 23,771 19, % 5,616 5,508 4,605 3, , , % 61,792 54,045 49,383 43, % % % % (31.0) % (20.5) , % %SMBC IT % SMBC % 1,4169.6% Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

88 daiwa securities group annual report , ,143 (141,150) 8,321 (31,525) (90,022) (27,923) 46,411 (85,039) 5,885 (20,522) (53,039) (17,363) , % %9875.9% 1, % % FX SMBC SMBC 2008 SMBC % 1,6741, SMBC ,470 SMBC IPO SMBC , , ,269 45,514 83,079 68,157 71,026 18,396 1,431 (167,468) 17,494 11,613 41,009 9,882 (5,836) (144,958) 10,665 6,513

89 Financial Section 3 * SMBC ,379 9,140 5,752 2,984 (5,321) (5,895) * % % Inc ,8253 1, , , ,533 7, ,3022 9, ,9773 2, ,2802, , ,266 9,5231, ,948 4,806 (4,190) (4,898) 3,661 (1,553) 1,419 (1,645) 6,9621, ,057 4,218 87

90 daiwa securities group annual report , , ,193 1, , , , (782,533) 1,519,388 (189,043) 9, ,087 (1,459,438) 359, ,600 8, IT SMBCSMBC SMBC

91 Financial Section ,260 1, ,192 1 SMBC SMBC SMBC SMBC SMBC Moody s Investors Service Baa1 Baa1 P-2 A1 P-1 Standard & Poor s BBB+ A-2 BBB+ A-2 A A-1 R&I A a-1 A a-1 A+ a-1 JCR A+ A+ 89

92 daiwa securities group annual report US$ , ,851 $ 4,240, , ,545 2,188,316 9,109 85,125 92, , ,521 6,522,081 69,593 75, , , ,894 93, , ,312 2,531, , ,071 3,597, ,385 2, ,095 1,221,314 6,929, ,413,526 6,206,327 55,240, ,203,742 7,857,122 63,303, , ,732 5,262,959 6,719,512 8,328,854 68,566, , ,314 1,462, , ,104 2,601, , ,711 1,068, , ,393 1,532, , ,880 1,130, , ,716 2,059, ,113 31, , , ,720 1,144,071 7,094 2,267 72, , ,790 5,999,724 14,182,579 17,307,120 $144,720,195 90

93 Financial Section US$ ,346 2,312,699 $ 9,381, , ,300 3,269, ,526,878 1,406,400 15,580,388 2,766,624 4,207,399 28,230, , ,293 5,021, , ,010 1,366,041 17,348 27, , , ,479 6,564, ,893,262 6,238,684 49,931, ,809,093 4,643,644 49,072,378 1,823 21,538 18, ,621 4, ,010 12,527 17, , ,941 24, ,704 54,596 66, , , ,973 1,158, ,417 8,017 45,071 13,230,250 16,224, ,002, ,000,000 1,404, , ,324 1,819, , ,679 1,608, , ,579 4,304,276 (61,526) (61,701) (627,816) 696, ,881 7,105,062 51,752 24, , ,092 (28,275) (9,062) (288,520) 23,976 16, , ,369 1,430 24, , ,404 2,343, ,329 1,082,924 9,717,644 14,182,579 17,307,120 $144,720,195 91

94 daiwa securities group annual report US$ , , ,736 $ 2,131, , , , ,561 (79,478) 19,160 32,818 (811,000) 192, , ,453 1,965,959 50,948 50,053 46, , , , ,308 4,223, , , ,245 1,796,265 38,358 38,147 36, , , , ,764 2,036, , , ,373 3,502, (143,726) 83, ,391 (1,466,591) 14 3,600 (52) (566) 36, (23,668) (1,629) 98 (241,510) (20,068) (1,681) (468) (204,775) (163,794) 81, ,923 (1,671,366) 13 4,383 40,475 65,794 44,724 (22,557) 299 3,657 (230,173) (18,174) 40,774 69,451 (185,449) 60,581 5,234 (23,747) 618,173 (85,039) 46,411 92,725 $ (867,744) 1 US$ 1 (63.16) $(0.63)

95 Financial Section ,332, , , ,216 (14,660) 72,694 (199) ,719 72,205 39,496 39,496 (45,806) (1,828) 92,725 (156) (1,239) 3, , , , ,404, , , ,474 (11,628) 5 75, , ,089 (38,788) 46,411 (346) (50,073) (172) (5) (51,188) 333 (17,608) 819 (29,685) ,404, , , ,579 (61,701) 24, (9,062) 1, ,404 (20,195) (85,039) (250) 175 (276) 27,282 (302) (19,213) 939 (33,716) ,404, , , ,819 (61,526) 51, (28,275) 2, ,688 US$ $1,819,633 $1,608,969 $5,383,459 $(629,602) $ $249,694 $ 8,173 $ (92,469) $14,592 $2,687,796 (206,071) (867,744) (2,551) 1,786 (2,817) 278,388 (3,081) (196,051) 9,581 (344,041) $1,819,633 $1,608,969 $4,304,276 $(627,816) $ $528,082 $ 5,092 $(288,520) $24,173 $2,343,755 93

96 daiwa securities group annual report US$ (85,039) 46,411 92,725 $ (867,744) 39,727 28,047 23, ,378 5,559 3, ,724 1, ,234 19, ,582 (3,600) (36,735) 22,542 5,240 (3,926) 230,020 1,430 1,952 5,880 14,592 1,354 4,681 (22,557) 299 3,657 (230,173) (60,581) (5,234) 23,747 (618,173) 53, ,806 27, , ,052 (147,279) (113,773) 1,163,796 (569,791) 1,721,872 (150,764) (5,814,194) 1,871,841 (2,561,539) 79,204 19,100,418 70,732 (76,273) (45,410) 721,755 79,094 22,660 36, ,079 1,604,427 (828,944) (107,195) 16,371,702 1,519,388 (782,533) (14,470) 15,503,958 (42,212) (120,181) (36,290) (430,735) 117,044 56,042 30,995 1,194,327 (14,900) (34,295) (18,439) (152,041) ,684 (36,174) (44,006) (34,648) (369,122) (32,155) (86,731) (47,527) (328,112) 16,454 52,909 36, ,898 1,357 (2,841) (3,655) (876) (28,990) 3,860 (9,366) (4,952) 39,388 9,437 (189,043) (73,288) 96,297 94

97 Financial Section US$ (1,559,873) 945,660 (97,430) (15,917,071) 296, , ,087 3,023,918 (218,239) (294,317) (362,305) (2,226,929) 42,625 (2,682) 10, ,949 40,080 (20,194) (38,787) (45,806) (206,061) (71) (10,894) (12,039) (724) (30) (50,486) 1,216 (306) (1,459,438) 991,087 43,163 (14,892,224) (13,847) (13,582) 4,788 (141,296) 55,540 5,929 (39,807) 566, , , ,350 3,671, , , , ,779 $ 4,240,816 95

98 daiwa securities group annual report SMBC % SMBC DSC SMBC SMBC IFRS SMBC60 40 IFRS US$ 98 96

99 97 Financial Section 40% 50% 20% 50% 15% 20% 20 3 a b c % 50% 50% 2.

100 daiwa securities group annual report % ,553

101 99 Financial Section

102 daiwa securities group annual report US$ , ,001 $ 807, , ,311 1,724, , ,312 $2,531,214 3,852 8,617 $ 39, , ,393 1,326, , ,010 $1,366, US$ $ 5,413,526 6,206,125 55,240,061 5,413,526 6,206,327 $55,240, , ,578 $ 6,783,092 4,228,519 5,535,106 43,148,153 4,893,262 6,238,684 $49,931,

103 Financial Section US$ , ,153 $ 1,675,449 3,178,908 5,801,937 32,437, ,851 90,184 1,304,602 CD CP 93, , , , ,844 2,728, , ,858 1,080,643 2,182,276 1,225,291 22,268,122 92,199 19, ,806 (7,996) (1,623) (81,592) 6,203,742 7,857,122 $63,303,490 US$ , ,997 $ 922,296 2,554,291 3,332,362 26,064, , ,575 2,753, , ,178 2,951,286 1,523, ,700 15,546,898 81,735 20, ,031 4,809,093 4,643,644 $49,072, ,445 3,493 (952) ,662 4,011 (651) US$ $45,357 $35,643 $(9,714) 101

104 daiwa securities group annual report US$ ,300 1,300 $13, , , ,913 1,486 1, ,955 12,066 (2,889) 248, , , , ,707 34,089 13,720 11,937 (1,783) 17,550 17,058 (492) 152, ,702 31,814 US$ $2,367,837 $3,846,541 $1,478,704 15,163 15, , ,122 (29,480) $2,535,602 $3,984,826 $1,449, US$ , ,309 $ 753,969 36,129 3, , , ,997 1,442,735 38,571 56, , , ,982 $2,958, ,291329,500 US$ 36,

105 Financial Section ,000 (51) (51) 7, , , US$ $ 1,296 $ 10 $ ,163 (520) (520) 81, US$ ,423 1,144,917 $2,759, ,852 8,618 39, ,295 1,153,555 $2,798, ,21332,786 US$ US$ ,721 $ 423,145 1,165,097 4,317, ,961 62, ,255 10, ,120 1,272,901 $4,950,

106 daiwa securities group annual report ,1591,685,296 US$ 609, US$ ,448,294 6,782,109 $45,390,755 1,263,998 1,287,930 12,897,939 5,712,292 8,070,039 $58,288, US$ ,761,635 7,542,741 $58,792, , ,116 3,968,265 6,150,525 8,008,857 $62,760, US$ ,106 4,052 $ 21,490 1,482 2,723 15, ,371 6, ,347 71,709 80, , ,668 11, ,061 US$ , $16, ,

107 Financial Section US$ , ,127 $1,280, , ,859 3,468,276 26, , , , ,293 $5,021, % 0.78% US$ % ,000 $ 1.30% ,000 70, , % ,000 50, , % , , % ,000 50, , % ,000 60, , % , , % ,000 30, , , ,355 8,817, ,000 70,000 1,071, , ,045 1,527, ,526,878 1,406,400 $15,580, ,350 US$ % 4.24% 0.50% 5.07% % 1.49% % 105

108 daiwa securities group annual report US$ ,441 $ 290, ,562 1,189, ,072 2,215, ,646 1,822, ,162 1,552, ,995 8,510,155 1,526,878 $15,580, ,7941,018,306 US$ ,569240,500 US$ 21, ,399 34,684 US$ 3,1573, ,755 US$ ,969 US$ % % 40.7% 12.4 (9.0) (1.3) (0.3) (0.5) (1.0) (0.2) 5.2 (3.6) % 37.4%

109 Financial Section US$ ,011 42,688 $ 887,868 17,022 13, ,695 10,420 8, ,327 2,888 4,938 29,469 4,574 2,473 46,673 6,980 7,582 71,224 6,517 7,333 66,500 40,671 8, ,010 5,474 55,857 12,928 16, , , ,074 1,984, ,725 72,281 1,333,929 63,760 40, ,612 62,268 14, ,388 1,492 26,792 $ 15, ,03831,000 US$ 1,

110 daiwa securities group annual report ,5982,189,776 US$ ,039 41,214 US$ US$ ,73168,684 US$ US$ , US$ ,535, ($ 7.71) ,000 1 ($ 0.01) ,889, ($ 7.97) ,000 1 ($ 0.01) ,515 ($15.46) ,000 1 ($ 0.01) ,224 ($12.49) ,000 1 ($ 0.01) ($ 9.36)

111 Financial Section DSC US$ ,100 2,018 ($20.59) ,600 1 ($ 0.01) ,700 4,263 ($43.50) ,100 1 ($ 0.01) ,700 1 ($ 0.01) ,303 ($43.91) ,700 1 ($ 0.01) ,000 1 ($ 0.01) ,713 ($17.48) ,400 1 ($ 0.01) ,200 1 ($ 0.01) ($10.12) DSC % % 319.7% SMBC 343.9% 307.6%

112 daiwa securities group annual report ,645 19,673 13,601 9, , ,232 6,009 2,191 (10,082) 157,295 20,905 19,610 11,816 (10,082) 199, ,255 13,741 24,714 13,700 (10,140) 343,270 (143,960) 7,164 (5,104) (1,884) 58 (143,726) ,452,445 2,293, ,624 72,782 (468,944) 14,182, ,520 10,195 13,448 17, ,491 (5,997) 4,398 8, (7,851) 400,523 14,593 21,912 18,314 (7,851) 447, ,998 13,043 26,947 14,717 (7,846) 363,859 83,525 1,550 (5,035) 3,597 (5) 83, ,307,375 2,990,598 1,260,014 80,659 (1,331,527) 17,307, ,875 9,588 19,870 13, ,764 (8,701) 5,096 16,034 1,298 (13,727) 475,174 14,684 35,904 14,729 (13,727) 526, ,606 13,079 27,563 10,851 (13,726) 340, ,568 1,605 8,341 3,878 (1) 186,

113 Financial Section US$ $ 1,598,419 $200,745 $138,786 $ 98,214 $ $ 2,036,164 6,633 12,571 61,316 22,357 (102,877) 1,605, , , ,571 (102,877) 2,036,164 3,074, , , ,795 (103,469) 3,502,755 $(1,468,979) $ 73,102 $ (52,082) $ (19,224) $ 592 $(1,466,591) $116,861,685 $23,404,817 $8,496,163 $742,673 $(4,785,143) $144,720, ,092 14,005 10,163 50, , % 7.0% 5.1% 25.2% ,169 10,048 15,281 44, , % 2.2% 3.4% 9.9% ,325 13,101 11,902 44, , % 2.5% 2.3% 8.4% $266,245 $142,908 $103,704 $ 512,857 2,036, % 7.0% 5.1% 25.2% US$ 111

114 daiwa securities group annual report , , US$ $1,602,633 $ % ,4101,953,163 US$ 237,

115 Financial Section , ,728 20,965 20,965 17, ,693 1, ,478 13,225 19, ,495 56, ,001 34,915 19, , , ,876 25,470 25,470 39,342 3,230 42,572 2,106 1,208 96,571 18,851 23, ,507 84,593 2, ,377 47,551 23, , , ,073 54,069 54,069 37,210 1,310 38,520 1,925 1,973 69,379 19,607 23, ,074 98,987 2, ,906 74,986 23, ,736 US$ $559,276 $ 3,714 $ 5,663 $ $ $ 568, , , ,347 7, ,745 16,255 6, , , ,714 1,158,112 $575,531 $10,112 $989,806 $356,276 $199,714 $2,131,

116 daiwa securities group annual report US$ (25,737) 11,020 31,288 $(262,622) 66,658 92, , ,183 40, , ,333 $ 417, US$ , , ,379 $1,444,898 33,696 45,671 37, ,837 21,045 22,166 19, ,745 43,704 38,759 38, ,959 30,157 29,878 23, ,724 6,554 7,330 8,265 66,878 35,590 28,047 23, ,163 30,924 35,346 26, , , , ,373 $3,502, US$ ,330 3,228 3,602 $ 23,776 (60) (205) (363) (612) (24,812) (8,263) (736) (253,184) (1,430) (1,415) (1,395) (14,592) (1,106) 1,738 1,424 (11,286) (452) (537) (2,975) (4,612) (1,354) (4,681) 1,862 5,179 5,222 19,000 (23,668) (1,629) 98 $(241,510) 114

117 Financial Section US$ ,975 $4,612 2% US$ 115

118 daiwa securities group annual report

119 Other Information

120 daiwa securities group annual report ) IT IR CSR 118

121 119 Other Information CEO COO CFO CIO

122 daiwa securities group annual report ) SMA SMA SMA SMA SMA SMA 120

123 121 Other Information

124 SMBC M&A daiwa securities group annual report )

125 Other Information SMBC SMBC SMBC SMBC SMBC Pte Ltd SMBC B.V. SMBC SMBC SMBC 123

126 daiwa securities group annual report

127 Other Information

128 daiwa securities group annual report

129 Other Information

130 daiwa securities group annual report TY

131 Other Information Financial Square, 32 Old Slip, New York, NY 10005, U.S.A California Street, Suite 3360, San Francisco, CA 94104, U.S.A PLC 5 King William Street, London EC4N 7JB, United Kingdom One Evertrust Plaza, Jersey City, NJ 07302, U.S.A Level 3, Block 5, Harcourt Centre, Harcourt Road, Dublin 2, Ireland Level 3, Block 5, Harcourt Centre, Harcourt Road, Dublin 2, Ireland SMBC 5 King William Street, London EC4N 7AX, United Kingdom Trianon Bldg., Mainzer Landstrasse 16, Frankfurt am Main, Federal Republic of Germany , Avenue Kléber, Paris, France , rue du Rhône, P.O. Box 3198, 1211 Geneva 3, Switzerland Via Senato 14/16, Milan, Italy th Floor, The Tower, Bahrain Commercial Complex, P.O. Box 30069, Manama, Bahrain The Gate Village Building 1, 1st Floor, Unit 6, Dubai International Financial Centre, P.O. Box , Dubai, UAE /9, build. 1, Per. Sivtsev Vrazhek, Moscow , Russian Federation

132 daiwa securities group annual report 2009 SMBC 26th Floor, One Pacific Place, 88 Queensway, Hong Kong SMBC 6 Shenton Way #26-08, DBS Building Tower Two, Singapore , Republic of Singapore SMBC 34th Floor, Rialto North Tower, 525 Collins Street, Melbourne, Victoria 3000, Australia SMBC 10th Floor, 3 North Avenue, Maker Maxity, Bandra Kurla Complex, Bandra East, Mumbai , India th Floor, DITC Building, #27-3, Youido-dong, Yongdungpo-gu, Seoul, Republic of Korea Room 3503/3504, SK Tower, No. 6 Jia Jianguomen Wai Avenue, Chaoyang District, Beijing, People s Republic of China th Floor, M. Thai Tower, All Seasons Place, 87 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Suite 405, Pacific Place Building, 83B Ly Thuong Kiet Street, Hanoi, Vietnam DBP-SMBC, Inc. 18th Floor, Citibank Tower, 8741 Paseo de Roxas, Salcedo Village, Makati City, Republic of the Philippines th Floor, 200, Keelung Road, Sec.1, Taipei, Taiwan, R.O.C th Floor, Aurora Plaza, 99 Fucheng Road, Pudong, Shanghai, People s Republic of China

133 Other Information URL ,404, , URL index.html IR E ir-section@dsgi.daiwa.co.jp URL 131

134 Printed in Japan

1) IT IR CSR 120 DAIWA SECURITIES GROUP ANNUAL REPORT 2010

1) IT IR CSR 120 DAIWA SECURITIES GROUP ANNUAL REPORT 2010 p120 p126 p130 p131 p133 DAIWA SECURITIES GROUP ANNUAL REPORT 2010 119 1) 2010 7 1 IT IR CSR 120 DAIWA SECURITIES GROUP ANNUAL REPORT 2010 121 DAIWA SECURITIES GROUP ANNUAL REPORT 2010 CEO COO SMBC PI

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