Daiwa Securities : Report Regarding Consolidated Liquidity Coverage Ratio and Consolidated Net Stable Funding Ratio

January 28, 2022

Daiwa Securities Group Inc.

Report Regarding Consolidated Liquidity Coverage Ratio

and Consolidated Net Stable Funding Ratio

Situation of Soundness in Liquidity Management as of Second Quarter in Fiscal Year 2021

In accordance with the Financial Instruments and the Exchange Act Article 57-17, "Notification, etc. of Documents Describing Status of Soundness in Management", Daiwa Securities Group Inc. reports the situation of soundness in liquidity management as of second quarter in fiscal year 2021.

1

Table of Contents
Key Metrics (at consolidated group level) ...............................................................................................................	3
Qualitative Disclosure (Consolidated) .....................................................................................................................	4
1.	Qualitative disclosure of consolidated Liquidity Coverage Ratio..........................................................................	4
2.	Qualitative disclosure of consolidated Net Stable Funding Ratio..........................................................................	5
Quantitative Disclosure (Consolidated)...................................................................................................................	6
1.	Quantitative disclosure of consolidated Liquidity Coverage Ratio........................................................................	6
2.	Quantitative disclosure of consolidated Net Stable Funding Ratio........................................................................	7

2

Key Metrics (at consolidated group level)

KM1: Key Metrics

（Unit :1 Million Yen,%）

		Second Quarter in	First Quarter in	Fourth Quarter in	Third Quarter in	Second Quarter in
		Fiscal Year 2021	Fiscal Year 2021	Fiscal Year 2020	Fiscal Year 2020	Fiscal Year 2020
Consolidated liquidity coverage ratio
15	Total high quality liquid	2,666,490	2,673,653	2,760,821	2,832,922	2,716,787
assets
16	Total net cash outflows	1,709,909	1,749,312	1,712,430	1,683,954	1,639,682
17	Consolidated liquidity	155.9%	152.8%	161.2%	168.2%	165.6%
coverage ratio
Consolidated net stable funding ratio
18	Total available stable	8,815,759
funding
19	Total required stable	5,490,069
funding
20	Consolidated net stable	160.5%
funding ratio

3

Qualitative Disclosure (Consolidated)

1. Qualitative disclosure of consolidated Liquidity Coverage Ratio

1. Changes in consolidated Liquidity Coverage Ratio over previous quarter

Daiwa Securities Group Inc.'s (the group) total High Quality Liquid Asset (HQLA) was 2,666,490 million Yen, which decreased by 7,163 million Yen from the previous quarter.

Cash outflows related to derivative exposures, loss of funding on debt products, committed credit and liquidity facilities was 230,215 million Yen, which decreased by 20,711 million Yen from the previous quarter. Cash outflow related to other contractual funding obligations was 1,002,118 million Yen, which decreased by 110,661 million Yen from the previous quarter. Cash inflow related to other cash inflows was 1,027,341 million Yen, which decreased by 97,266 million Yen from the previous quarter. And total net cash out flow was 1,709,909 million Yen, which decreased by 39,403 million Yen from the previous quarter.

As a result of above mentioned conditions, the group's consolidated Liquidity Coverage Ratio was 155.9%, which increased by 3.1 points. For the past two years, changes in the ratio were relatively stable.

1. Evaluation of the group's consolidated Liquidity Coverage Ratio

The group sets forth "The Rule of Regulatory Liquidity Management", and not only maintains minimum Liquidity Coverage Ratio, but also sets internal alert level, and periodically reviews as to whether the level of the ratio is above the internal alert level.

The group's consolidated Liquidity Coverage Ratio is sufficiently above the minimum requirement.

C) Composition of HQLA

There is no significant change in composition of HQLA over previous quarter.

1. Other issues related to the consolidated Liquidity Coverage Ratio
   There is no significant item for disclosure.

4

2. Qualitative disclosure of consolidated Net Stable Funding Ratio

1. Changes in consolidated Net Stable Funding Ratio

Daiwa Securities Group Inc.'s (the group) total Available Stable Funding (ASF) was 8,815,759 million Yen. Capital before the application of capital deductions was 1,538,266 million Yen, Funding from retail and small business customers was 1,847,284 million Yen, and Wholesale funding was 5,023,975 million Yen.

Total Required Stable Funding (RSF) was 5,490,069 million Yen. Loans, repo transactions-related assets, securities and other similar assets were 2,806,974 million Yen, and Other assets were 2,196,173 million Yen.

As a result of above mentioned conditions, the group's consolidated Net Stable Funding Ratio was 160.5%, which is sufficiently above the minimum requirement.

1. Application of Exception for Interdependent Asset and Liability
   Not applicable.
2. Other issues related to the consolidated Net Stable Funding Ratio
   There is no significant item for disclosure.

5