Consolidated [PDF:242KB]

Code number: 8601

Stock Exchange Listings: Tokyo, Nagoya

URL: https://www.daiwa-grp.jp/english/

Scheduled date of filing quarterly financial report: February 10, 2022

Scheduled date of dividend payment: -

Supplemental information for quarterly financial results: Yes

Earnings announcement for quarterly financial results: Yes (for analysts)

January 28, 2022

Financial Summary (Consolidated)

For the nine months period ended December 31, 2021

(Figures less than one million yen are rounded down)

1. Consolidated financial results (April 1, 2021 to December 31, 2021)

(1) Consolidated operating results					(Millions of yen, % of change from previous year)
	Operating revenue	Net operating revenue	Operating income	Ordinary income
FY 2021	471,138	15.2 %	390,317		14.1%	98,575		44.4%	112,481	41.2%
FY 2020	408,817	(20.1)%	342,083		8.4%	68,273		80.2%	79,635	59.2%
(Note) Comprehensive	income:
FY 2021: 96,321 million yen ,	37.3% ;	FY 2020: 70,134 million yen ,	37.5%
	Profit attributable to	Net income		Diluted net income
	owners of parent	per share			per share
FY 2021	76,902	33.1%	50.86		Yen		50.60		Yen
FY 2020	57,789	17.7%	37.97		Yen		37.81		Yen

(Note) Daiwa Securities Group Inc. (hereinafter the "Company") has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 revised on March 31, 2020), etc. , from the beginning of the fiscal year ending March 31, 2022.

(2) Consolidated financial conditions

(Millions of yen, except per share amounts and percentage)

Total assets

Total net assets

Equity ratio

Net assets per share

As of Dec. 31, 2021

26,415,274

1,600,496

5.0

%

897.76

Yen

As of Mar. 31, 2021

26,099,330

1,591,841

5.1

%

875.12

Yen

(Reference) Stockholders'

equity (Total net assets -

Subscription rights to shares

- Non-controlling interests):

As of Dec. 31,2021:

1,331,188 million yen

; As of Mar. 31, 2021: 1,333,570 million yen

2. Cash dividends

Dividends per share (yen)

First

Second

Third

Fiscal

Total

quarter-end

quarter-end

quarter-end

year-end

FY 2020

－

11.00

－

25.00

36.00

FY 2021

(actual)

－

17.00

－

FY 2021

(expected)

－

－

(Note) Modification from the most recently announced dividend forecast: None

The expected amount of dividends for the fiscal year ending March 31, 2022 is undecided.

3. Earnings forecasts for the fiscal year ending March 31, 2022 (consolidated)

Daiwa Securities Group's (hereinafter the "Group") principal business is securities-related business, and the performance of the Group is significantly influenced by the economic and market environment in which it operates. Therefore, the Company does not disclose the forecasts of consolidated operating results, considering the difficulty to forecast the performance.

Due to the economic situation and the deterioration of the market environment caused by the outbreak of Coronavirus Disease (COVID-19), the performance of the securities-related business, which is the Group's main business, may be adversely affected. The impact on the Group's business results is not clear at this time, but it will be disclosed immediately if there should be anything to be disclosed.

Representative: Seiji Nakata, President

For inquiry: Yusuke Fujino, Executive Director, Corporate Planning Dept. Investor Relations Office Phone [phone]

4. Other notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries causing changes in the scope of consolidation): None
   New companies: None
   Excluded companies: None
2. Application of accounting methods which are exceptional for quarterly consolidated financial statements: None
3. Changes in accounting policies, estimates, and restatements:
   (ⅰ) Changes in accounting policies due to the revision of accounting standards: Yes
   (ⅱ) Changes in accounting policies other than (ⅰ): None
   (ⅲ) Changes in accounting estimates: None
   (ⅳ) Restatements: None
   (Note) For details, please see "(1) Changes in accounting policies, estimates, and restatements" under "1.Summary information" on page 2.
4. Number of shares issued (common stock)
   (ⅰ) Number of shares issued (including treasury shares):

As of Dec. 31, 2021 :	1,699,378,772	; As of Mar. 31, 2021 :	1,699,378,772
(ⅱ) Number of treasury shares:
As of Dec. 31, 2021 :	216,614,948	;	As of Mar. 31, 2021 :	175,511,235
(ⅲ) Average number of shares issued and outstanding in each fiscal year:
As of Dec. 31, 2021 :	1,511,963,575	;	As of Dec. 31, 2020 :	1,522,046,196

Implementation status of audit procedure:

Financial Summary and accompanying materials including the consolidated financial statements are not subject to the audit procedure by external auditors.

Statement on the proper use of earnings forecasts and other information:

For the reasons listed in "3. Earnings forecasts for the fiscal year ending March 31, 2022(consolidated)", the forecast of the dividend is not stated.

Financial Summary

Daiwa Securities Group Inc.

(Accompanying materials)

Contents

1. Summary information ·····························································································································	2
(1)	Changes in accounting policies, estimates, and restatements ·············································································	2
2. Consolidated financial statements ···············································································································	3
(1)	Consolidated balance sheets ···················································································································	3
(2)	Consolidated statements of income and Consolidated statements of comprehensive income ········································	6
(3)	Going concern assumptions ····················································································································	9
(4)	Changes in substantial amounts of fluctuation in shareholders' equity ··································································	9
(5)	Quarterly transition of consolidated statements of income ················································································	10

(Note) Presentation materials (PDF version) of "Earnings Announcement" are available at our website. URL: https://www.daiwa-grp.jp/english/ir/presentation/index.html

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Financial Summary

Daiwa Securities Group Inc.

1. Summary information

1. Changes in accounting policies, estimates, and restatements

(Changes in accounting policies)

The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 revised on March 31, 2020; hereinafter referred to as "Revenue Recognition Standard"), etc. , from the beginning of the fiscal year ending March 31, 2022, and recognize revenue at the amount expected to be received in exchange for its goods or services when the dominance of the promised goods or services are transferred to a customer.

For the application of the Revenue Recognition Standard, the Company has followed the transitional treatment prescribed in Article 84 proviso of the Revenue Recognition Standard. Accordingly, the cumulative effect of retroactively applying the new accounting policy prior to the beginning of the first quarter under review has been added to or subtracted from retained earnings at the beginning of the quarter. However, for the contracts for which almost all revenues have been recognized under the previous accounting method before the beginning of this consolidated first quarter, the method stipulated in Article 86 of the Revenue Recognition Standard is not applied retroactively. In addition, in accordance to Provision (1) stipulated in Section 86 of the Revenue Recognition Standard, the accounts have been processed reflecting all contract modifications on all contracts made prior to the beginning of this consolidated first quarter, and the cumulative impact amount was either added to or subtracted from retained earnings at the beginning of this consolidated first quarter.

Due to the application of the Revenue Recognition Standard, "Notes and accounts receivable - trade" which were included in "Current assets" in the consolidated balance sheets for the previous fiscal year, are included in "Notes and accounts receivable - trade, and contract assets" from the beginning of the fiscal year ending March 31,2022. In accordance with the transitional treatment stipulated in Article 89-2 of the Revenue Recognition Standard, figures for the previous fiscal year have not been restated in accordance with the new approach to presentation.

This has no significant effect on the quarterly consolidated financial statements.

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Financial SummaryDaiwa Securities Group Inc.

2. Consolidated financial statements

(1) Consolidated balance sheets

						Millions of yen
			As of
Assets		March 31,				December 31,
		2021				2021
Current assets:
Cash and deposits	¥	4,763,197	¥	4,612,814
Cash segregated as deposits		485,876				549,640
Notes and accounts receivable - trade		21,488				-
Notes and accounts receivable - trade, and contract assets		-				23,262
Securities		996,683				1,187,201
Trading products:		7,834,093				7,874,684
Trading securities and other		5,374,191				5,879,398
Derivatives		2,459,901				1,995,286
Operational investment securities		97,092				105,187
Allowance for investment loss		(588)				(152)
Operating loans		1,996,121				1,902,353
Work in process		603				3,471
Margin transaction assets:		162,078				186,373
Loans on margin transactions		152,077				183,245
Cash collateral pledged for securities borrowing on margin transactions		10,001				3,128
Loans secured by securities:		7,448,321				7,719,679
Cash collateral pledged for securities borrowed		5,054,451				4,771,355
Loans on Gensaki transactions		2,393,870				2,948,324
Advances paid		20,131				16,894
Short-term loans receivable		595				653
Accrued income		36,229				35,947
Other		788,790				686,365
Allowance for doubtful accounts		(4,401)				(6,978)
Total current assets		24,646,314				24,897,397
Non-current assets:
Property, plant and equipment		880,477				907,956
Intangible assets:		128,786				120,608
Goodwill		21,229				19,731
Other		107,557				100,877
Investments and other assets:		443,751				489,311
Investment securities		402,590				451,102
Long-term loans receivable		6,313				6,602
Guarantee deposits		17,692				17,572
Deferred tax assets		11,397				6,832
Other		10,415				11,860
Allowance for doubtful accounts		(1,037)				(1,037)
Allowance for investment loss		(3,620)				(3,620)
Total non-current assets		1,453,016				1,517,876
Total assets	¥	26,099,330	¥	26,415,274

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