Daiwa Securities : 1H FY2022 Management Strategy Update

11/24/2022 | 06:44pm EST

Daiwa Securities Group

1H FY2022 Management Strategy Update

November 25, 2022

Seiji Nakata, President and CEO

Daiwa Securities Group Inc.

These materials were produced to provide information on results through the second quarter of FY2022 and the managementʼs vision for the future. They are not intended as a solicitation for investment in securities issued by Daiwa Securities Group Inc. These materials were produced based on information that was disclosable as of November 25, 2022. The opinions, forecasts, and other forward-looking statements in these materials are based on the companyʼs judgment at the time they were produced, and Daiwa Securities Group Inc. makes no guarantees in regard to the accuracy and completeness of the information contained herein. This information may also be revised without prior notice in the future.

Table of Contents

- Overview of the 1H of Year 2 of

the Medium-Term Management Plan ・・・・3

- Individual Strategies ・・・・ 9

- Sustainability・・・・ 36 Appendix ・・・・ 42

- Overview of the 1H of Year 2 of the Medium-Term Management Plan

Ⅰ - Overview of the 1H of Year 2 of the Medium-Term Management Plan

1H Market Environment

The market fluctuates wildly as the global economy faces major turning points, such as Russia's invasion of Ukraine, global division and raging inflation, and the shift from long-term monetary easing.

Equity Markets (Parenthesis shows FY2022 average forecast projected as of March 2021)

FX Markets

The FY2022 averages for the Nikkei Average and S&P 500 lower than projected

S&P500(left)

3,993pt

（Forecast︓4,350pt）

Nikkei Average

(right)

￥28,264

（Forecast︓￥34,000）

Currently also a sense of a lull in the sharp weakening of the yen since the beginning of 2022

EUR/JPY(right)

¥143.6

USD/JPY(left)

¥138.8

（Forecast︓ ¥110）

（pt）

（yen）

Bond Markets

price volatility＊1＞

Yields have risen since the beginning of 2022

U.S.(left)	Volatility now declining after	U.S.
3.81％	surging since the beginning of 2022
（Forecast︓2.00%）		(left)

	Japan
Japan(right)		(right)

0.24％

（Forecast︓0.18%）

（％）	（％）	（pt）	（pt）
	*1 Japan︓S&P/JPX JGB VIX US︓MOVE（Source）Bloomberg All graphs use weekly data（period : April 2, 2021 to November 11, 2022）	4

Ⅰ - Overview of the 1H of Year 2 of the Medium-Term Management Plan

1H Performance Summary

Group consolidated ordinary income for FY2022 1H decreased substantially in Wholesale Division due to severe market environment while Retail Division, Asset Management Division, and Investment Division performed well and secured a certain level of profit.

Consolidated Ordinary Income

（¥ billions）

Previous Medium-Term Management Plan	Current Medium-Term
Management Plan

Progress on Financial KPIs

Performance		Financial Base
Ordinary Income	ROE		Consolidated total
	capital ratio
（FY2022 1H）	（FY2022 1H）
	（As of June 30, 2022）

¥32.9 billion	4.5％						20.43％
	Target (FY2023)	Target (FY2023)			Target (FY2023)
¥200 billion or more	10％ or higher			Maintain at
		18％ or higher


	Wealth Management Business			Hybrid Strategy
Retail Division asset based revenues	FY2022			Hybrid-related
	2Q
								ordinary income
	Revenues	Ratio					and income ratio
					（FY2022 1H）

	¥20.7 billion	51.6%					¥21.5 billion
	Target (FY2023 4Q)					65%
	Target (FY2023.4Q)			Target (FY2023)
	¥24 billion
	Estimate (FY2022 2Q)	50％ or higher			¥50 billion or more
			Around 25％
	¥19.8 billion

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Daiwa Securities Group Inc. published this content on 24 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2022 23:43:17 UTC.

DAIWA SECURITIES GROUP INC.

Daiwa Securities : 1H FY2022 Management Strategy Update

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