Daiwa Securities Group Inc.

3Q FY2022 Earnings Announcement

January 30, 2023

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 (3Q/FY2022, YoY)

Both net operating revenues and ordinary income decreased YoY.

Consolidated earnings results

Net operating revenues Ordinary income Profit attributable to owners of parent

FY2022 1Q-3Q

¥338.4 bn

¥56.1 bn

¥46.7 bn

FY2021 1Q-3Q

¥390.3 bn

¥112.4 bn

¥76.9 bn

  • Changes vs
    1Q-3Q/FY2021

-13.3%

-50.1%

-39.2%

  • Retail Division decreased in both operating revenues and ordinary income due to a decrease in revenues from customer order flow, but secured ordinary income of ¥19.6 bn led by steady progress in shifting to wealth management business model and cost reduction.
    • Contract amount of wrap account service is ¥434.5 bn and net inflow expanded to ¥225.4 bn, the highest level in seven years. Contract AUM hit a record high of ¥2.97 tn.*
  • For Wholesale Division, ordinary income for Global Markets and Global Investment Banking deteriorated due to a decrease in client activities as a result of uncertain market condition.
  • Asset Management Division maintained the same level as last year.
    • In securities asset management, net inflow of publicly offered stock investment trusts (excluding ETF) was ¥403.0 bn, the highest level in seven years.
    • Real estate asset management reached a record high in net operating revenues and ordinary income. **
  • In Investment Division, ordinary income jumped 2.1 times YoY led by revenue expansion from private equity investment and renewable energy investment.
  • Overseas operations recorded black in all areas, and ordinary income was up 2.1 times YoY.

* Includes Wholesale Division ** Since disclosures of segment information started in FY2010

3

Summary (3Q/FY2022, QoQ)

Both net operating revenues and ordinary income increased. Ordinary income is ¥23.1 bn, increase of 56.0% QoQ.

Consolidated earnings results

FY2022 3Q

Net operating revenues

¥121.4 bn

Ordinary income

¥23.1 bn

Profit attributable to owners of parent

¥15.2 bn

FY2022 2Q

¥110.9 bn

¥14.8 bn

¥19.5 bn

  • Changes vs 2Q/FY2022

+9.5%

+56.0%

-21.9%

  • For Retail Division, both net operating revenues and ordinary income increased due to an increase in transaction-based revenues such as equity revenues and fixed income revenues, as well as
    an increase in wrap-relatedrevenues(asset-based revenues).
  • For Wholesale Division, Global Markets improved QoQ driven by an increase in FICC revenue. Global Investment Banking increased in both net operating revenues and ordinary income.
  • Annualized ROE: 4.3%

Net Operating Revenues

Ordinary Income

Profit Attributable to

Owners of Parent

(¥ Billions)

(¥ Billions)

(¥ Billions)

4

Consolidated

Financial Summary

FY2021

FY2022

% Change

% Change

FY2021

FY2022

% Change

(¥ Millions)

vs

vs

vs

FY2021

3Q

4Q

1Q

2Q

3Q

1Q-3Q

1Q-3Q

2Q/FY22

3Q/FY21

1Q-3Q/FY21

Operating revenues

166,599

148,333

146,640

192,552

233,036

21.0%

39.9%

471,138

572,229

21.5%

619,471

Net operating revenues

134,374

111,776

106,122

110,933

121,433

9.5%

-9.6%

390,317

338,488

-13.3%

502,093

SG&A

98,323

94,817

97,274

98,942

99,913

1.0%

1.6%

291,741

296,130

1.5%

386,559

Ordinary income

40,561

23,340

18,085

14,855

23,170

56.0%

-42.9%

112,481

56,112

-50.1%

135,821

Profit (loss) attributable to

26,698

17,989

11,878

19,576

15,295

-21.9%

-42.7%

76,902

46,750

-39.2%

94,891

owners of parent

Total assets

26,415,274

27,531,089

28,747,174

31,461,475

28,115,421

26,415,274

28,115,421

27,531,089

Net assets

1,600,496

1,639,888

1,668,661

1,697,428

1,657,832

1,600,496

1,657,832

1,639,888

Shareholders' equity*

1,331,188

1,373,282

1,400,590

1,428,464

1,388,380

1,331,188

1,388,380

1,373,282

EPS (¥)

17.90

12.13

8.01

13.24

10.52

50.86

31.75

63.06

BPS (¥)

897.76

925.81

943.71

971.62

955.66

897.76

955.66

925.81

ROE (Annualized)

8.0%

5.3%

3.4%

5.5%

4.3%

7.7%

4.5%

7.0%

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

5

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Daiwa Securities Group Inc. published this content on 30 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 06:13:27 UTC.