Daiwa Securities Group Inc.

4Q FY2021 Earnings Announcement

April 27, 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

Highlights (1Q-4Q/FY2021, YoY)

Both net operating revenues and ordinary income increased YoY.

% Changes vs

Consolidate earning results

FY2021 1Q-4Q

FY2020

Net operating revenues

¥502.0 bn

+7.6％

Ordinary income

¥135.8 bn

+17.9％

Profit attributable to owners of parent

¥94.8 bn

-12.5％

  • Ordinary income in Retail Division expanded and reached ¥41.8 bn led by steady progress in changing to wealth management business model and cost reduction.

    • Ordinary income achieved the final target of Medium-Term Management Plan (¥40.0 bn) in its first fiscal year.

    • Both contract amount and net inflow of wrap account service jumped. Contract AUM hit a record high of ¥2.95 tn*.

  • For Wholesale Division, net operating revenues 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**.

Shareholder return remained at high level

  • FY2021 annual dividend is 33 yen (Interim dividend: 17 yen, Year-end dividend: 16 yen). Annual dividend payout ratio is 52.3%.

  • Set up of share repurchase program. Total number of shares to be repurchased: up to 33.0 mil shares. Total amount to be paid for repurchase: up to ¥25.0 bn (2.22% of total shares outstanding, excluding treasury stock).

  • Cancellations of treasury shares (Total number of shares cancelled: 130.0 mil shares; 7.64% of total number of issued shares before the cancellation)

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

Summary (4Q/FY2021, QoQ)

Both revenues and income decreased due to market correction.

Net operating revenues

Ordinary income

Profit attributable to owners of parent

  • For Retail Division, sales of stock investment trusts and trading of foreign equity decreased.

  • For Wholesale Division, profit decreased due to a decrease in revenues from equity though FICC revenues increased for Global Markets. Equity underwriting and debt underwriting decreased for Global Investment Banking.

  • Annualized ROE:5.3% BPS: ¥925.81 (a record high)

Consolidated earnings results

FY2021 4Q

% Changes vs 3Q/FY2021

¥111.7 bn

-16.8%

¥23.3 bn

-42.5%

¥17.9 bn

-32.6%

Consolidated

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

(¥ Millions)

Operating revenues

FY2020

FY2021

% Change % ChangeFY2020FY2021

Net operating revenues

SG&A

Ordinary income

Profit (loss) attributable to owners of parent

Total assets

Net assets

Shareholders' equity*

EPS (¥)

BPS (¥)

ROE (Annualized)

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Disclaimer

Daiwa Securities Group Inc. published this content on 27 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2022 06:14:05 UTC.