74 Daiwa Securities Group Integrated Report 2019

Messages from Outside Directors

Tadashi Onodera Michiaki Ogasawara Hirotaka Takeuchi Outside Director Outside Director Outside Director

Daiwa Securities Group has now completed The rapid advance of technology is a Daiwa Securities Group is pursuing the first year of its Medium-Term Management backdrop to the evolving competitive “Quality No. 1” as one of its basic Plan. While we were not satisfied with the environment in the financial sector. Given strategies. In the midst of an AI era and performance KPI results, I see that we are this, how the Company can adapt itself to Big Data, which are garnering so much making steady progress on the basic the change is now being questioned. I attention, daring to put together a strategy of the Plan, namely, on “Quality believe our efforts at “Quality No. 1” strategy based on “quality” holds No. 1” initiatives and providing value as activities and to be an “integrated enormous significance. an “integrated securities group with a securities group with a hybrid business As the other pillar of its basic strategy, hybrid business model.” model” espoused in the Medium-Term pursuing efforts to become an “integrated The basic strategy is intended to Management Plan, and all the other securities group with a hybrid business ensure our corporate principles of various initiatives currently being made to model,” the Group has expanded its “building trust,” “placing importance on increase management efficiency, business domain by aggressively personnel,” and “contributing to society,” demonstrate the Company’s powerful establishing new companies, and and the anticipated result that binds commitment to dealing with such change. undertaking M&A as well as business these together, which is “maintaining I would like to contribute to building a alliances. I hope to contribute by making healthy earnings results.” Daiwa proper corporate governance system, in unique proposals in connection with Securities Group is undertaking vigorous order that these endeavors continue to the basic strategy and helping with its efforts to expand business areas. As an be undertaken in all aspects of corporate implementation so that the Group can outside director, together with my activities, and so that, as a result, they are take an even greater leap forward in support for the expansion of such truly linked to elevating corporate value. the world. business areas, I will strive to contribute from the perspective of corporate governance as well.

1989 Director of DDI Corporation (currently known 1976 Entered Ministry of Posts and 1976 Lecturer of Harvard Business School as KDDI Corporation) Telecommunications 1977 Assistant Professor of Harvard Business 1995 Associate Senior Vice President, Director of 2003 Director-General of Tohoku Bureau of School the above company Telecommunications, Ministry of Internal Affairs 1983 Assistant Professor of Hitotsubashi University, 1997 Representative Director and Deputy President and Communications Faculty of Commerce and Management of the above company 2004 Director-General of Kanto Bureau of 1987 Professor of Hitotsubashi University, Faculty of 2001 Representative Director and President of Telecommunication, the above Ministry Commerce and Management KDDI Corporation 2005 Deputy director-general of the above Ministry 1998 Dean of Hitotsubashi University, the Graduate 2005 Representative Director, President, Chairman Director-General of Local Public Service School of International Corporate Strategy of the Board of the above company Personnel Department, Local Administration 2010 Professor Emeritus of Hitotsubashi University 2010 Chairman of the Board, Representative Bureau, the above Ministry Professor of Harvard Business School (to date) Director of the Board of the above company 2006 Director-general of Civil Protection and 2016 Outside Director (Member of the Board), 2014 Member of the Board of the Company (to date) Disaster Management Department, Fire and Daiwa Securities Group Inc. (to date) 2015 Chairman of the Board of KDDI Corporation Disaster Management Agency, the above 2018 Member of the Board and Advisor of Ministry KDDI Corporation 2007 Director-General of the Information and Advisor of KDDI Corporation (to date) Communications Policy, the above Ministry 2008 Director-General of the Global ICT Strategy Bureau, the above Ministry 2010 Assistant Vice-Minister of the above Ministry 2012 Vice-Minister of the above Ministry 2013 Advisor of Daiwa Institute of Research Ltd. 2015 Outside Director (Member of the Board), Daiwa Securities Group Inc. (to date) Daiwa Securities Group’s Daiwa Securities Group’s Business Strategy Retail Sales Reform Strategies by Division HR Strategy Governance Strategy Financial Section Other Information 75

Ikuo Nishikawa Eriko Kawai Katsuyuki Nishikawa Outside Director Outside Director Outside Director

Daiwa Securities Group is developing a As a tool that facilitates long-term In the first year of the current Medium- framework for sales that lives up to what investment, and enables individual asset Term Management Plan, Daiwa Securities we call “customer-oriented management.” building in consideration of customer Group has formed a foundation upon Under a severe market environment in needs and risks so that people can live a which the Daiwa version of NPS has been FY2018 the Group’s profits declined, but prosperous 100-year life, I intend to introduced to all branches as a way to with the future effect of the newly support the Daiwa version of NPS to help numerically visualize the degree of developed framework, I will monitor ensure it prevails in the future. Making customer satisfaction. Moreover, by management activities so that this will be SDGs the foundation of management establishing new companies as well as a company that consistently secures demonstrates the role Daiwa Securities engaging in M&A activities and stable profits. With regard to corporate Group must play in making contributions collaborating to expand its business areas investing activities, I would like that such to society. In the coming era, a corporate and develop a hybrid business model, the gains be based on the premise that they mission that entails solely the pursuit of Group has continued its initiatives to possess social value and are profit will not be acceptable. As an outside steadily respond to social transformation environmentally friendly. In addition, I look director, I would like to utilize my by gaining a precise understanding of forward to the creation of a business experience in internationally diversified diversifying customer needs. We have environment where diverse employees asset management. As a woman with a now entered “Reiwa,” the new era of each have high motivation and that career built up outside of Japan, I also Japan where it will be necessary to enables them to take on challenges. hope to support efforts aimed at increasing respond astutely and flexibly to the the corporate value of the Group. various changes that society is expected to experience. Going forward, the source of Daiwa Securities Group’s sustained growth will be the trust it earns from customers, financial and capital markets, and from society as a whole. As an outside director, I will utilize my experience in legal affairs and compliance, and hope to contribute to the building of even further trust by achieving robust corporate governance.

1990 Representative Partner of Century Audit 1981 Entered Nomura Research Institute, Ltd. 1979 Prosecutor of Osaka District Public Corporation (currently known as Ernst & Young 1985 Management Consultant of McKinsey & Prosecutors Office ShinNihon LLC) Company, Inc. 2008 Director-General of the Rehabilitation Bureau 1993 Representative of JICPA in International 1986 Fund Manager of Mercury Asset Management/ of the Ministry of Justice Accounting Standards Committee SG Warburg plc Director-General of the Immigration Bureau of 1995 Executive Director of the Japanese Institute of 1995 CIO of Yamaichi Regent ABC Polska, the Ministry of Justice Certified Public Accountants Head of Investment 2009 Director-General of the Criminal Affairs Bureau 2001 Deputy Chairman of Accounting Standards 1998 Pension Funds Administrator of Bank for of the Ministry of Justice Board of Japan International Settlements (BIS) 2011 Vice-Minister of the Ministry of Justice 2007 Chairman of Accounting Standards Board of 2004 Senior Pension Funds Administrator of 2014 Superintending Prosecutor of the Sapporo Japan Organization for Economic Cooperation and High Public Prosecutors Office 2012 Professor of Keio University, Faculty of Development (OECD) 2015 Superintending Prosecutor of the Tokyo High Business and Commerce 2008 Representative of Kawai Global Intelligence Public Prosecutors Office 2016 Outside Director (Member of the Board), 2012 Professor of Institute for the Promotion 2016 Prosecutor General Daiwa Securities Group Inc. (to date) of Excellence in Higher Education, 2018 Retired as Prosecutor General 2017 Guest Professor of Graduate School of Keio Kyoto University Attorney at law (to date) University, Faculty of Business and Commerce 2013 Professor of Institute for Liberal Arts and 2019 Outside Director (Member of the Board), (to date) Sciences, Kyoto University Daiwa Securities Group Inc. (to date) 2014 Professor of Graduate School of Advanced Integrated Studies in Human Survivability, Kyoto University (to date) 2018 Outside Director (Member of the Board), Daiwa Securities Group Inc. (to date)