To Our Shareholders

The Daiwa Securities Group has formulated a medium term management plan “Passion for the Best 2014” covering the 3 year period, starting this April, from fiscal year 2012 to 2014. During this fiscal year, as the initial year of the medium term management plan, we have been focusing on “Returning to profitability by pursuing management efficiencies,” which is one of the two basic policies representing the management plan.
Continuous stagnation of economies both within and out of the country since the last term, triggered by the European debt crisis, prolonged yen appreciation, and slowdown of the Chinese economic growth, has made our business environment to be difficult to operate in. However, the Group resulted in black for the first half of this fiscal year (April to September 2012) owning to sustained efforts to improve profitability and to synergies between the two major subsidiaries integrated this April: the former Daiwa Securities and Daiwa Securities Capital Markets. We have also resulted in black for three consecutive quarters, and we are steadily progressing our way in “Returning to profitability by pursuing management efficiencies.”
As prospects of business environments surrounding the Group remain uncertain, we will further enhance our efforts to expand client based high-quality earnings and to establish a robust business structure capable of securing profits despite stressful economic conditions.
We are grateful to our shareholders for their support.

December 2012

President and CEO
Daiwa Securities Group Inc.