Autumn 2010 Business Strategy

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 condition 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 industries in 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. Index

1H FY2010 Financial Summary ････ 3

Wholesale ････ 9

Retail ････ 18

Asset Management ････ 26

2 1H FY2010 Financial Summary

3 Consolidated Financial Summary

FY2010 FY2009 % Change FY2010 % Change (Y mil) vs vs FY2009 1H 1H1H FY09 2Q 1Q 1Q FY10 Operating revenues 201,388 237,750 -15.3% 107,236 94,151 13.9% 537,915

Net operating revenues 160,048 194,502 -17.7% 88,434 71,613 23.5% 458,105

SG&A 176,840 172,121 2.7% 88,980 87,859 1.3% 362,844

Ordinary income -9,027 24,865 － -839 -8,187 － 102,917

Net income -5,384 19,861 － -4,192 -1,191 － 43,429

Total assets 16,594,420 16,129,373 16,594,420 16,209,379 17,155,345

Net assets 934,776 1,249,909 934,776 961,298 1,017,528

Shareholders' equity* 856,224 988,324 856,224 875,996 927,163

EPS (Y) -3.12 12.89 -2.45 -0.68 26.41

BPS (Y) 500.95 565.26 500.95 506.75 530.27

ROE (Annualized) － 4.6% － ― 5.3%

* Shareholders’ equity = owners’ equity + valuation and translation adjustments

ROE (Annualized) 1H 2Q FY10 Interim Dividend

Daiwa Securities 8.5% 7.0% Interim Dividend per Share: 3 yen Daiwa Capital Markets － － (consolidated) 4 Consolidated Segment Information

Ordinary Income ＜1H FY2010＞ Segment Consolidated Ordinary Income FY2010 Factor Analysis by Segment （Y mil） FY2009 1H 2Q 1Q （Y bil） Retail(*1) 18,904 7,367 11,536 40,475 40

Global Markets(*2) -21,770 -2,474 -19,295 -14,126 30 Retail -7,234 -3,689 -3,545 9,304 Global (*3) 20 Asset Management Asset Management(*4) 7,591 3,853 3,738 11,208 10 Adjustment Investment(*5) -7,374 -4,716 -2,658 65,981 0 Others Others(*6) -3,410 -2,964 -446 -7,928 -10 Investment Consolidated Total Total before adjustment -13,294 -2,624 -10,669 104,914 -20 Global Investment Adjustment 4,266 1,784 2,482 -1,997 -30 Banking Consolidated total -9,027 -839 -8,187 102,917 Global -40 Markets ■Main companies for each segment are as follows: (*1) Daiwa Securities, Hinode Securities -50 (*2) Daiwa Securities Capital Markets (Global Markets Division) (*3) Daiwa Securities Capital Markets (Global Investment Banking Division), Daiwa Corporate Advisory Partners, Sagent Advisors Inc.* (*4) Daiwa Asset Management, Daiwa SB Investments*, Daiwa Real Estate Asset Management, Daiwa Fund Consulting (*5) Daiwa PI Partners, Daiwa Securities SMBCPI, Daiwa Corporate Investment (*6) Daiwa Securities Group Inc., Daiwa Securities Capital Markets (Financial Division and others), Daiwa Institute of Research HD, Daiwa Institute of Research, Daiwa Institute of Research Business Innovation, Daiwa Securities Business Center, Daiwa Property, Daiwa Sanko * Equity in earnings of affiliates is included in ordinary income. 5 Moving on to the next growth stage

SourceSource ofof ““NewNew andand ImprovedImproved”” DaiwaDaiwa GroupGroupGroup’s’’ss GrowthGrowth

Deepening of Cooperation New Business Chance Speed-up of Decision Making within the Group „Take part in lead „Increase in businesses „Speedy strategy managing deals which with regional financial formulation and were difficult to achieve institutions, utilizing execution for Asia before network of branches business expansion across the country ¾ Mitsubishi UFJ Financial Group Co-lead manager for Public Offering in December, 2009 „Decision to acquire ¾ MIizuho Financial Group „Enhance development operations of other Co-lead manager for Public and sales of products companies Offering in July, 2010 which meet customer needs

6 Increase in Transactions from New Business Chances

Achievement of Lead Managing Deals Trends in Number of Lead Managing Companies „ Co-Lead Managing deals of companies whose main is Bank of -Mitsubishi UFJ or End of End of Mizuho Corporate Bank Sep. Sep. Change

Amount Launch 2009 2010 Company Name Scheme (Y bil) Date MUFG Global PO 1,070.0 12/14/2009 Daiwa CM* Lead Managing 777 751 ▲26 Mizuho FG Global PO 780.0 07/13/2010 Companies Sankei Building SB 10.0 04/21/2010 Mitsubishi UFJ SB 25.0 05/25/2010 Company Lease & A Finance SB 20.0 08/26/2010 1,403 1,373 ▲30 Lead Managing Fujitsu SB 50.0 10/13/2010 Companies Company „ Lead Managing deals of companies whose B 644 594 ▲50 main bank is Sumitomo Mitsui Banking Lead Managing Companies Corporation

Amount Launch Company Name Scheme (Y bil) Date Others 947 956 ＋9

NEC Global PO 123.6 11/18/2009

Nippon Sheet Global PO 42.4 09/08/2009 Glass Total 3,771 3,674 ▲97 Euro/Yen Anritsu 10.0 09/07/2010 CB Daiwa CM: Daiwa Securities Capital Markets Source: Toyo Keizai Inc. “Quarterly Journal” 7 Synergy from Deepening of Groups’ Cooperation

Expansion in Domestic Bond Trading with Sales of Structured Bonds Regional Financial Institutions

Daiwa Sales Amount (regional bank+second-tier 【Total Sales in Daiwa Securities and （Y tri） regional bank+shinkin , Left) （Y bil） Daiwa's share( Right) Daiwa Securities Capital Markets】

5 15% 160

140 4 13% 120

100 3 11%

80

2 9% 60

40 1 7%

20

0 5% 0 3Q/09 4Q/09 1Q/10 2Q/10 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10

Enhance approach to regional financial institutions utilizing Daiwa Securities’ Expand sales of structured bonds by enhancing the composition of 120 branches across the nation and cooperating with Daiwa Securities Capital Markets structured bonds to meet customer needs

※Excludes Treasury Discount Bills ※Number of branches is as of September, 2010 8 Wholesale

9 Wholesale Daiwa focuses on Asian home markets

TargetsTargets inin GlobalGlobal InvestmentInvestment TargetsTargets inin GlobalGlobal MarketsMarkets DivisionDivision SupplySupply PowerPower BankingBanking DivisionDivision DistributionDistribution TopTop 55 BrokersBrokers inin AsianAsian EquitiesEquities PowerPower TopTop 1010 inin ECMECM leagueleague table*table*

StrengthenStrengthen marketmarket andand investmentinvestment bankingbanking segmentssegments simultaneouslysimultaneously andand intensivelyintensively toto harnessharness earlyearly synergysynergy effecteffect

(Y bil) Daiwa Group 200 Asia Oceania revenue Asia related revenue 175 ※ “Asia-related revenue of Daiwa Securities Group” DaiwaDaiwa GroupGroup 150 = Revenue of our Asian/Oceanian offices TargetTarget AsiaAsia + revenue of our offices in Japan, Europe and the U.S. through RelatedRelated RevenueRevenue 125 Asia-related businesses such as equity, fixed income and investment banking 100 + revenue of our retail, investment trust and investment advisory operations through Asia-related products such as equity, fixed income and investment trust 75 TargetTarget revenuerevenue ofof AsianAsian businessbusiness 50 strategystrategy (JPY(JPY 5353 billion)billion) 25

0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 ResultsResults * ECM league table: ECM in the Asia Pacific region, excluding Japan and Australia (Thomson Financial) 10 Wholesale Increase Personnel

WholeWhole AsianAsian regionregion GlobalGlobal MarketsMarkets DivisionDivision (# of personnel) (# of personnel) 620 457 1,300 320

GlobalGlobal InvestmentInvestment BankingBanking DivisionDivision 868 (# of personnel) 190 644 93 106

Middle/backMiddle/back OfficesOffices (# of personnel) 490

305 231 Sep. 2009 Sep. 2010 Mar. 2012(E)

Notes: - The figures for March 31, 2012 represent approximate plans -Excludes the personnel of our representative offices and Daiwa SSC Securities -Global Markets Division includes middle office personnel related to derivative business 2009/9 2010/9 2012/3(E) 11 Wholesale Acquisition of Core Personnel

AppointmentAppointment ofof AdvisorsAdvisors

Ashok Jha Chang-Lok Kim Senior Advisor, Daiwa Capital Markets India Pvt. Ltd. Senior Advisor

Former Secretary of Finance, Ministry of Finance, Former Governor of Korea Development Bank, Deputy Governor of the Financial Supervisory Service, Government of India, Indian alternate Governor in the President of the Korea Center for International Finance, Asian Development Bank and the World Bank and Deputy Minister of MOFE (Ministry of Finance and head of the Indian subsidiary of Hyundai Motors Economy)

HiringHiring ofof SeniorSenior BankersBankers

GlobalGlobal MarketsMarkets DivisionDivision GlobalGlobal InvestmentInvestment BankingBanking DivisionDivision

„ Regional Head of Asian Equity Sales Ester Li „ Head of FIG, Asia ex-Japan Thomas J. Jackamo

„ Head of Global Equity Sales, „ Head of General industry, Meurig Williams Marco Arosti Europe/Middle East Asia ex-Japan „ Head of Consumption/retail, „ Insuk Jung Gerard Gu Head of Fixed Income, Korea Asia ex-Japan

„ Head of Fixed Income, India Ajay Marwaha „ Head of ECM, Asia-ex Japan Jonathan O. D. Orders

„ Head of Research Mingchun Sun

12 Wholesale Achievements

１ Acquisition of KBC Group’s 2 business operations

„ Acquisition of Asian Equity Derivative Business and Global CB Business operations

２ Achievements of Global Markets Division

„ Trading volume in HK equity increased to highest level „ Increase access to Asian companies through research coverage and IR support

３ Achievements of Global Investment Banking Division

„ Executions of POWLs, IPOs, and QIP in India „ Executions of various cross border M&A deals

13 Wholesale Acquisition of KBC Group’s 2 Business Operations

„„ DiversificationDiversification ofof revenuesrevenues throughthrough acquisitionacquisition ofof aa solidsolid clientclient basebase andand platformplatform „„ StableStable revenuerevenue trendtrend andand highhigh evaluationevaluation byby third-partythird-party

AsianAsian EquityEquity DerivativeDerivative BusinessBusiness

Listed Hong Kong warrants trading volume share „„ TopTop playerplayer inin thethe marketmarket makingmaking ofof HongHong Kong-listedKong-listed warrantswarrants 2008 2009 2010 (Jan to Aug) „„ OfferingOffering derivativederivative productsproducts 1. Société Générale 17.0% 1. Société Générale 15.9% 1. Société Générale 16.7% throughthrough AsianAsian privateprivate banksbanks 2. KBC 15.8% 2. BNP Paribas 14.1% 2. 10.1% ・・・ (wholesaling(wholesaling ofof structuredstructured bondsbonds andand 3. Deutsche Bank 15.7% 3. Deutsche Bank 11.9% 3. KBC 10.0% OTC derivatives) OTC derivatives) 4. KBC 10.1%

Source: Daiwa Securities Capital Markets

GlobalGlobal CBCB BusinessBusiness „„ CoveringCovering moremore thanthan 350350 investorsinvestors acroacrossss 2525 countriescountries

Third-party evaluation in the Asian region (2008)

MostMost competitivecompetitive inin pricingpricing TopTop ImportantImportant convertibleconvertible firmfirm 2nd2nd BestBest salessales coveragecoverage 2nd2nd

14 Wholesale Achievements in Global Markets Division

Equity Trading Value Increase Access to Asian Companies of Hong Kong Shares

(HK$ bil) „ Expansion of Asian research 50 Highest Record 5,000 ¾ Expand coverage companies by increasing personnel z Approx. 40 analysts (Sep. 2009) ⇒ Approx. 70 （as of Nov. 11, 2010） z Approx. 300 covered companies (Sep. 2009) ⇒ approx. 400 (as of 40 4,000 Nov. 11, 2010)

¾ Expand issuance of Pan Asia Sector reports

30 3,000 „ Expansion of IR conference ¾ Strengthen RM by matching institutional investors and Asian companies including 20 2,000 Japan Tokyo Hong Kong (# of participant companies) (# of participant companies)

Trading Value of Hong Kong Stock Exchange 142 10 1,000 100(E) (Right) 70 43 21 50(E) 52 Daiwa Capital Markets Hong Kong (Left) 25 Japanese Asian 0 0 Japanese Asian 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2009/3 2010/3 2009/11 2010/11 FY08 FY09 FY10 15 Wholesale Achievements in Global Investment Banking Division

POWLPOWL (Co-lead(Co-lead manager)manager)

„ July： Agricultural Bank of China Ltd „ October： American International Assurance Company Ltd (AIA Group)

IPOIPO

„ April： Novarise Renewable Resources International Ltd (Chinese company listed in Australia)

„ June： International Taifeng Holdings Ltd (Listed in Hong Kong)

„ September： China Sanjiang Fine Chemicals Co., Ltd (Listed in Hong Kong)

IndiaIndia QIPQIP (Qualified(Qualified InstitutionalInstitutional PlacementPlacement ))

„ July ： Ess Dee Aluminium Ltd „ September： Strides Arcolab Ltd

Cross-borderCross-border M&AM&A dealsdeals „ June： Acquisition of Singapore-based Apex Systems Pte Ltd by NTT Data

„ August： Acquisition of U.K.-based Chelford SAP Solutions Ltd by Itteligence AG, Germany- based subsidiary company of NTT Data

„ September ： Acquisition of U.S-based SAE Towers Holdings LLC by India-based KEC International Ltd (First India-U.S. Co-advisor deal) 16 Wholesale Strategy for 2H in FY2010

„ Increase profit by continuing enhancement of Asian equity Global Global „ Offer foreign currency-denominated bonds and MarketsMarkets structured bonds by cooperating with Daiwa Securities DivisionDivision „ Speedy integration of “Asian Equity Derivative Business” and “Global CB Business” operations of KBC

„ Achieve equity finance deals by enhancing sector coverage structure

„ Raise profit by complex set of offerings such as currency GlobalGlobal trading and bridge loan InvestmentInvestment BankingBanking „ Target on large-size deals by drastic enhancement of Asia DivisionDivision Investment Banking Operation

„ Aim for closing of cross-border M&A deals utilizing global network 17 Retail

18 Retail Action Plans for FY2010

Expand customer base by strengthening consulting capability

Provide attractive products and services to meet customer needs

Reduce cost by rationalizing and streamlining back-office operations utilizing Information Technology

19 Retail Expansion of Customer Base

Net Increase of Client Assets

IncreaseIncrease NewNew CustomersCustomers IncreaseIncrease ClientClient AssetsAssets Opening of Increase Number of New Accounts Large Accounts （e.g., high-net-worth individuals and corporations）

z Offer products and services in accordance with market trend and customer needs z Focus on “Daiwa SMA”, managed account service specially MeasuresMeasures designed for high-net-worth class z Promote campaigns for opening of new accounts and asset inflow z Preparation of banking business

20 Retail Take Advantage of Strong Yen as a Business Chance

„„ SeizeSeize Yen’sYen’s strengthstrength asas aa businessbusiness chance,chance, andand proactivelyproactively offeroffer foreignforeign currency-denominatedcurrency-denominated bondsbonds „„ IntroduceIntroduce foreignforeign currency-denominatedcurrency-denominated bondsbonds ofof emergingemerging countriescountries whichwhich havehave higherhigher potentialpotential forfor growthgrowth Sales of Correlation between currency exchange Foreign currency–denominated bonds rate and foreign currency saving balance

（Y bil） （Y tri） Foreign currency saving balance increases （Yen） as value of Yen rises 800

700 7 140 600 6 130 500 5 120 400 4 110

300 3 100

200 2 Individual foreign currency saving average 90 balance(Left)

100 1 USD／JPY Exchange rate(Right) 80

0 0 70 '99'00'01'02'03'04'05'06'07'08'09'10 1H FY08 2H FY08 1H FY09 2H FY09 1H FY10 Source: Bank of Japan 21 Retail Expand Lineup of Equity Investment Trusts

Expand Lineup of Investment Trusts Sales of Equity Investment Trusts to Meet Clients’ Strong Preference （Y bil） 900 １ “Monthly-dividend-payment-type”“Monthly-dividend-payment-type” remains remains popularpopular 800 Popular Funds of 1H FY2010 700 „ Daiwa Foreign Bond Fund (Daiwa Spirit) „ Short-Term Australian Dollar Bond Open-End Fund 600 „ Daiwa Global REIT Open-End Fund

500 Newly Launched High Yield Bond Fund in October

400 „ Daiwa U.S. High Interest Rate Bond Fund （Currency selection type） 300

200 Expand lineup to meet dividend income needs 100

0 ２ EmergingEmerging country-relatedcountry-related fundsfunds areare popularpopular 1H FY08 2H FY08 1H FY09 2H FY09 1H FY10 Popular Newly Launched Funds of 1H FY2010

Sales proportion of 1H FY2010 „ Twin-Accelerator Fund（Mix of Brazil Government Monthly-dividend-payment- Newly-launched Bonds and emerging country stocks） type investment trusts investment trusts „ Future Generation Transportation Equity Fund „ Asia Technology Related Equity Fund etc. 56% 38% Launch new and distinguishing funds 0% 20% 40% 60% 80% 100% to match economic and market environment ※Proportion excludes switching transactions between funds 22 Retail Leading the Impact Investment Market

Sales of Impact Investment Bonds Impact Investment Bonds Sold in FY2010

（Y bil） （Y bil） Issued Date Name Size 04/16/2010 Water Bond 60.4 200 【 Annual Sales 】 05/2/2010 Ecology Bond 32.6 06/15/2010 Microfinance Bond 8.7 Latin America 156.3 07/15/2010 Nurturing Support 13.9 Bond 150 08/30/2010 Africa Education Bond 11.8 09/22/2010 Microfinance Bond 29.0

Domestic Sales Share of 100 Impact Investment Bonds

65.2

50 43.5 Daiwa 71％ 21.3

0 FY2007 FY2008 FY2009 1H FY2010 Source: Daiwa Securities, bonds for individuals (As of September 30, 2010) 23 Retail Expansion of Services Appealing to Active Investors

“Daiwa Direct” Course: Number of Accounts Key Measures for Enhancement

（thousand) Daiwa CFD

1,400 【May】 „ Start lineup of 100 domestic CFD stocks „ Enable mobile phones for transactions

1,200 【August】„ Expand to 271 domestic CFD stocks „ Handling fee abolished

1,000

Daiwa Margin Trading Service 800 【July】 „ Brokerage commission was lowered for internet-based transactions 600 „ Version upgrade of “Daiwa Trading Board” 400 Daiwa 365FX 200 【August】„ Start “Daiwa FX Speed Account Opening”

0 „ Start “Daiwa Trading Board 365 FX”, a 1H 2H 1H 2H 1H 2H 1H highly-functional tool which integrates foreign exchange information and FY07 FY08 FY09 FY10 transaction ※ # at the end of term 24 Retail Increase in Accounts and Trade Volume

“Daiwa 365 FX” : Trade Volume and “Daiwa 365 FX” : Number of Accounts Market Share

（# of accounts) （thousand) （mil）

2,500 # of "Daiwa 365 FX"Accounts "Daiwa 365 FX" Trade Volume Opened (Left) 15 2.5 (Left) 25% # of "Daiwa 365 FX" Accounts Daiwa's share (Right) 21.05% (Right) 12,345 2,000 12 2.0 20%

1,500 9 1.5 15% 7,102

9.74% 1,000 6 1.0 10%

500 3 0.5 5%

0 0 0.0 0% Apr May Jun Jul Aug Sep Apr May Jun Jul Aug Sep 2010 2010 ※ # at the end of the month Source: Tokyo Financial Exchange Inc. 25 Asset Management

26 Asset Management

Continuing Inflow of Assets and Enhancement of Asian Stock Management

Enhancement of Asian Stock Management Asset Under Management in Daiwa Asset Management

（Y tri）

Daiwa AM (Bond Funds) 20 18% Daiwa AM (Equity Funds) Daiwa SB Investments (Investment Trusts) Daiwa SB Investments (Investment Advisory) Daiwa Securities Group Share* (Right) Enhance Communication 15

17%

Tokyo 10 Shanghai

Hong Kong 16% Mumbai 5 Local subsidiary under establishment Singapore

0 15% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY08 FY09 FY10 * Daiwa Asset Management (Bond funds + Equity funds)＋Daiwa SB Investments (Investment trusts)

27 Daiwa Securities Group Inc.

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