Overview of the Daiwa Securities Group
Principle management indicators (consolidated) ■ Daiwa Securities Group’s Business Description
FY2002 FY2003 FY2004 FY2005 FY2006 The Daiwa Securities Group is comprised of Daiwa Securities 3. Asset management business Operating revenues (¥ million) 387,658 453,813 519,337 845,659 917,307 Group Inc., the holding company which controls the group The Group provides development and management of stock, Net operating revenues (¥ million) 270,809 352,434 390,432 579,358 526,764 companies, the two main securities companies, Daiwa Securities bond, and private investment trusts, as well as other investment Ordinary income (¥ million) 29,200 96,130 120,433 260,651 195,415 Net income (loss) (¥ million) (6,322) 42,637 52,665 139,948 92,724 Co. Ltd. and Daiwa Securities SMBC Co. Ltd. management services. Net assets (¥ million) 541,718 604,170 648,332 792,281 1,223,225 4. Investment business Total assets (¥ million) 9,502,825 10,765,665 12,378,961 14,898,890 14,411,265 1. Retail securities business Using its own funds, the Daiwa Securities Group invests in private Return on equity (ROE) (%) — 7.4 8.4 19.4 10.8 Net income (loss) per share (¥) (4.75) 31.66 39.03 103.90 67.90 Through its national network of 117 branches, the Call Center, equity, monetary receivables, real estate, venture capital Net assets per share (¥) 407.84 453.60 486.70 598.27 665.98 and the Internet, Daiwa Securities Co., Ltd. offers two retail opportunities, and business regeneration. It also forms and Annual dividends per share (¥) 6.00 10.00 13.00 34.00 28.00 services: Daiwa Consulting and Daiwa Direct. These services manages investment funds. offer a wide range of financial products and services, and support 5. Research, systems, and consulting business
Corporate profile (As of March 31, 2007) Number of employees (consolidated basis)* Employee composition Number of employees 13,264 customer asset management, mainly targeting individual The Group is engaged in various forms of consulting and customers. research reporting in fields such as management, finance, and (persons) Company name By company By region 15,000 2. Wholesale securities business information technology. This information is provided to institutional Daiwa Securities Group Inc. 13,264 12,483 12,459 12,561 Daiwa Securities Europe 5% Asia/Oceania 12,243 Group companies The Daiwa Securities SMBC’s business line consists broadly of investors, corporate clients, financial institutions, and public 12,000 Group Inc. Americas 3% outside Japan 2% Headquarters 11% 2% (1) brokerage and trading of equities, bonds, and derivatives and institutions in and outside Japan. 9,000 6-4, Otemachi 2-chome, Chiyoda-ku, Other (2) investment banking services to institutional investors, 6. Group support group Tokyo 100-8101, Japan 6,000 companies Daiwa corporate clients and financial institutions, in and outside Japan. Services are supplied to member companies within the Daiwa in Japan Securities Japan 26% Co. Ltd. 90% Our investment banking services support a wide range of Securities Group in areas such as administrative outsourcing 46% 3,000 Daiwa Telephone Securities businesses, from business expansion to finance and capital relating to securities, as well as consulting for real estate and SMBC Co. Ltd. +81-3-3243-2100 0 strategies, through services relating to financing for corporate building management. FY2002 FY2003 FY2004 FY2005 FY2006 16% As of March 31, 2007 Fiscal year end clients and financial institutions. * The number of employees includes the number of Established Financial Advisors (FA).
December 27, 1943 (Founded 1902) Operating revenues and net operating revenues Breakdown of operating revenues Breakdown of net operating revenues by region
(¥ million) (¥ million) Consolidated operating revenues Service fees President and CEO Europe Asia/Oceania Consolidated net operating revenues and other sales (¥ billion) 19,869 13,431 Shigeharu Suzuki 46,967 1,000 Americas Daiwa Securities Group Inc. 9,587 800 Holding Capital 917 845 Commissions company Interest and ¥178.3 billion 600 306,736 Total dividend income 526,762 579 373,452 Individual 400 519 526 453 investors Number of employees (consolidated) 387 390 352 Net gain on trading Japan Daiwa Securities 200 483,875 Trading Trading 13,264 270 157,332 Co. Ltd. Net gain on private equity 0 FY2002 FY2003 FY2004 FY2005 FY2006 and other securities 32,818 FY2006 FY2006 Number of consolidated subsidiaries Mainly retail Corporations/ 46 securities business Issuers Ordinary income, net income, and ROE Total assets and net assets Annual dividends per share Daiwa Securities SMBC Co. Ltd. Number of equity-method affiliates Consolidated ordinary income Consolidated total assets (left-hand side) (¥) Consolidated net income Brokerage and trading 4 Consolidated net assets (right-hand side) 40 Wholesale Securities issuance and underwriting Return on equity (ROE) (right-hand side) (¥ billion) (¥ billion) (¥ billion) % 15,000 1,500 35 34 Institutional securities 300 60 14,898 business 14,411 investors Shares issued and outstanding 30 28 12,000 1,200 250 50 1,404,664,000 260 1,223 25 Asset 200 40 12,378 195 9,000 900 managers 10,765 20 Daiwa 150 139 30 120 9,502 Daiwa Asset Daiwa SB NIF SMBC Daiwa Securities Daiwa 19.4 792 15 100 96 92 20 6,000 600 13 Insurance 648 Management Investments Ventures Institute of Business Property 8.4 10.8 10 companies 7.4 541 604 10 Co. Ltd. Ltd. Co., Ltd. Research Ltd. Center Co., Ltd. 50 29 10 3,000 300 6 42 52 Co., Ltd. 0 0 5 Trust banks -6 Asset Research -50 -10 0 0 0 management Investment and system Group support FY2002 FY2003 FY2004 FY2005FY2006 FY2002 FY2003 FY2004 FY2005 FY2006 FY2002 FY2003 FY2004 FY2005 FY2006 Others consulting
5 DAIWA SUSTAINABILITY REPORT 2007 DAIWA SUSTAINABILITY REPORT 2007 6 Overview of the Daiwa Securities Group
Principle management indicators (consolidated) ■ Daiwa Securities Group’s Business Description
FY2002 FY2003 FY2004 FY2005 FY2006 The Daiwa Securities Group is comprised of Daiwa Securities 3. Asset management business Operating revenues (¥ million) 387,658 453,813 519,337 845,659 917,307 Group Inc., the holding company which controls the group The Group provides development and management of stock, Net operating revenues (¥ million) 270,809 352,434 390,432 579,358 526,764 companies, the two main securities companies, Daiwa Securities bond, and private investment trusts, as well as other investment Ordinary income (¥ million) 29,200 96,130 120,433 260,651 195,415 Net income (loss) (¥ million) (6,322) 42,637 52,665 139,948 92,724 Co. Ltd. and Daiwa Securities SMBC Co. Ltd. management services. Net assets (¥ million) 541,718 604,170 648,332 792,281 1,223,225 4. Investment business Total assets (¥ million) 9,502,825 10,765,665 12,378,961 14,898,890 14,411,265 1. Retail securities business Using its own funds, the Daiwa Securities Group invests in private Return on equity (ROE) (%) — 7.4 8.4 19.4 10.8 Net income (loss) per share (¥) (4.75) 31.66 39.03 103.90 67.90 Through its national network of 117 branches, the Call Center, equity, monetary receivables, real estate, venture capital Net assets per share (¥) 407.84 453.60 486.70 598.27 665.98 and the Internet, Daiwa Securities Co., Ltd. offers two retail opportunities, and business regeneration. It also forms and Annual dividends per share (¥) 6.00 10.00 13.00 34.00 28.00 services: Daiwa Consulting and Daiwa Direct. These services manages investment funds. offer a wide range of financial products and services, and support 5. Research, systems, and consulting business
Corporate profile (As of March 31, 2007) Number of employees (consolidated basis)* Employee composition Number of employees 13,264 customer asset management, mainly targeting individual The Group is engaged in various forms of consulting and customers. research reporting in fields such as management, finance, and (persons) Company name By company By region 15,000 2. Wholesale securities business information technology. This information is provided to institutional Daiwa Securities Group Inc. 13,264 12,483 12,459 12,561 Daiwa Securities Europe 5% Asia/Oceania 12,243 Group companies The Daiwa Securities SMBC’s business line consists broadly of investors, corporate clients, financial institutions, and public 12,000 Group Inc. Americas 3% outside Japan 2% Headquarters 11% 2% (1) brokerage and trading of equities, bonds, and derivatives and institutions in and outside Japan. 9,000 6-4, Otemachi 2-chome, Chiyoda-ku, Other (2) investment banking services to institutional investors, 6. Group support group Tokyo 100-8101, Japan 6,000 companies Daiwa corporate clients and financial institutions, in and outside Japan. Services are supplied to member companies within the Daiwa in Japan Securities Japan 26% Co. Ltd. 90% Our investment banking services support a wide range of Securities Group in areas such as administrative outsourcing 46% 3,000 Daiwa Telephone Securities businesses, from business expansion to finance and capital relating to securities, as well as consulting for real estate and SMBC Co. Ltd. +81-3-3243-2100 0 strategies, through services relating to financing for corporate building management. FY2002 FY2003 FY2004 FY2005 FY2006 16% As of March 31, 2007 Fiscal year end clients and financial institutions. * The number of employees includes the number of Established Financial Advisors (FA).
December 27, 1943 (Founded 1902) Operating revenues and net operating revenues Breakdown of operating revenues Breakdown of net operating revenues by region
(¥ million) (¥ million) Consolidated operating revenues Service fees President and CEO Europe Asia/Oceania Consolidated net operating revenues and other sales (¥ billion) 19,869 13,431 Shigeharu Suzuki 46,967 1,000 Americas Daiwa Securities Group Inc. 9,587 800 Holding Capital 917 845 Commissions company Interest and ¥178.3 billion 600 306,736 Total dividend income 526,762 579 373,452 Individual 400 519 526 453 investors Number of employees (consolidated) 387 390 352 Net gain on trading Japan Daiwa Securities 200 483,875 Trading Trading 13,264 270 157,332 Co. Ltd. Net gain on private equity 0 FY2002 FY2003 FY2004 FY2005 FY2006 and other securities 32,818 FY2006 FY2006 Number of consolidated subsidiaries Mainly retail Corporations/ 46 securities business Issuers Ordinary income, net income, and ROE Total assets and net assets Annual dividends per share Daiwa Securities SMBC Co. Ltd. Number of equity-method affiliates Consolidated ordinary income Consolidated total assets (left-hand side) (¥) Consolidated net income Brokerage and trading 4 Consolidated net assets (right-hand side) 40 Wholesale Securities issuance and underwriting Return on equity (ROE) (right-hand side) (¥ billion) (¥ billion) (¥ billion) % 15,000 1,500 35 34 Institutional securities 300 60 14,898 business 14,411 investors Shares issued and outstanding 30 28 12,000 1,200 250 50 1,404,664,000 260 1,223 25 Asset 200 40 12,378 195 9,000 900 managers 10,765 20 Daiwa 150 139 30 120 9,502 Daiwa Asset Daiwa SB NIF SMBC Daiwa Securities Daiwa 19.4 792 15 100 96 92 20 6,000 600 13 Insurance 648 Management Investments Ventures Institute of Business Property 8.4 10.8 10 companies 7.4 541 604 10 Co. Ltd. Ltd. Co., Ltd. Research Ltd. Center Co., Ltd. 50 29 10 3,000 300 6 42 52 Co., Ltd. 0 0 5 Trust banks -6 Asset Research -50 -10 0 0 0 management Investment and system Group support FY2002 FY2003 FY2004 FY2005FY2006 FY2002 FY2003 FY2004 FY2005 FY2006 FY2002 FY2003 FY2004 FY2005 FY2006 Others consulting
5 DAIWA SUSTAINABILITY REPORT 2007 DAIWA SUSTAINABILITY REPORT 2007 6