3Q FY2021 Earnings Announcement [PDF:1,529KB]

Daiwa Securities Group Inc.

3Q FY2021 Earnings Announcement

January 28, 2022

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 financial services industries in Japan 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.

Table of Contents

Highlights	3-4
Financial Summary	5-7
B/S & Financial Management Summary	8-9
P/L Summary	10
Breakdown of SG&A	11-12
Overseas Operations	13
Segment Information	14-21
Reference	22-35

2

Highlights (1Q-3Q/FY2021, YoY)

Both net operating revenues and ordinary income increased.

Profit attributable to owners of parent reached five-year high.

Consolidated earnings results

FY2021 1Q-3Q

% Changes vs

FY2021 3Q

% Changes vs

1Q-3Q/FY2020

2Q/FY2021

Net operating revenues

¥390.3 bn

+14.1%

¥134.3 bn

+4.0%

Ordinary income

¥112.4 bn

+41.2%

¥40.5 bn

+9.6%

Profit attributable to owners of parent

¥76.9 bn

+33.1%

¥26.6 bn

+0.2%

• Ordinary income in Retail Division reported ¥35.1 bn led by steady progress in changing to wealth management business model and cost reduction.
• • Both contract amount of wrap account service and investment trust sales amount jumped.
  • Asset under management of Asset based fee plan for investment trust reached ¥372.6 bn.
• For Wholesale Division, both net operating revenues and ordinary income reached a record high* in Global Investment Banking.
• • Revenues from M&A business reached a record high.
• In Asset Management Division, both net operating revenues and ordinary income recorded the highest*.

*Since disclosures of segment information started in FY2010.

3

Summary (3Q/FY2021, QoQ)

Both net operating revenues and ordinary income increased.

Consolidated earnings results		FY2021 3Q
Net operating revenues		¥134.3 bn
Ordinary income		¥40.5 bn
Profit attributable to owners of parent		¥26.6 bn

• Changes vs 2Q/FY2021

+4.0%

+9.6%

+0.2%

• Ordinary income in Retail Division posted ¥12.7 bn (+2.7%) and exceeded ¥10.0 bn for 4 consecutive quarters.
• For Wholesale Division, revenues from FICC recovered in Global Markets, and revenues from equity underwriting increased in Global Investment Banking.

	 Annualized ROE:8.0%	BPS: ¥897.76 (a record high)
	Net Operating Revenues			Ordinary Income	Profit Attributable to
				Owners of Parent
(¥ Billions)		(¥ Billions)	(¥ Billions)

4

Consolidated

Financial Summary

	FY2020		FY2021		% Change	% Change	FY2020	FY2021	% Change vs				FY2020
(¥ Millions)						vs	vs
3Q	4Q	1Q	2Q	3Q	1Q-3Q	1Q-3Q	1Q-3Q/FY20
	2Q/FY21	3Q/FY20
Operating revenues	151,636	167,355	149,836	154,702	166,599	7.7%	9.9%	408,817	471,138	15.2%		576,172
Net operating revenues	126,149	124,576	126,721	129,222	134,374	4.0%	6.5%	342,083	390,317	14.1%			466,660
SG&A	94,207	99,990	94,873	98,544	98,323	-0.2%	4.4%	273,810	291,741	6.5%			373,800
Ordinary income	34,514	35,540	34,922	36,997	40,561	9.6%	17.5%	79,635	112,481	41.2%			115,175
Profit (loss) attributable to	24,985	50,606	23,560	26,642	26,698	0.2%	6.9%	57,789	76,902	33.1%			108,396
owners of parent
Total assets	26,234,974	26,099,330	25,586,624	25,510,806	26,415,274			26,234,974	26,415,274				26,099,330
Net assets	1,300,145	1,591,841	1,581,457	1,612,395	1,600,496			1,300,145	1,600,496				1,591,841
Shareholders' equity*	1,250,130	1,333,570	1,321,883	1,344,702	1,331,188			1,250,130	1,331,188				1,333,570
EPS (¥)	16.40	33.22	15.45	17.54	17.90			37.97	50.86				71.20
BPS (¥)	820.74	875.12	866.74	889.70	897.76			820.74	897.76				875.12
ROE (Annualized)	8.0%	15.7%	7.1%	8.0%	8.0%			6.3%	7.7%				8.5%

* Shareholders' equity = Owners' equity + Accumulated other comprehensive income

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