PASSION FOR THE BEST
Message from Management
 

Takashi Hibino; President and CEO of Daiwa Securities Group Inc.

Daiwa Securities Group formulated "Passion for the Best" 2020, our new three-year medium-term management plan (hereafter, "medium-term plan") in April of this year, and we embarked on the next stage of greater growth.

During the first half (April-September 2018) of this fiscal year, the Japanese stock market was weighed down by growing concerns over intensifying trade friction between the United States and China and weakening of the currencies in emerging markets. However, the stock market rose toward the end of the first half, boosted by the weak yen and strong dollar in the foreign exchange market on top of favorable indicators for the Japanese economy. Amid this operating environment, the group achieved net operating revenues of 223.4 billion yen, ordinary income of 46.0 billion yen, and profit attributable to owners of the parent, which represents bottom-line profit, of 36.2 billion yen for consolidated earnings results in first half of fiscal year 2018.

We have changed our dividend policy to ensure even better returns to shareholders. From this fiscal year, we have raised the dividend payout ratio to "50% or higher", from the previous target of "around 40%" and announced the interim dividend of 12 yen per share for fiscal year ending March 31, 2019. The Board of Directors authorized a share buyback program of up to 55 million shares (3.40% of total shares outstanding excluding treasury stock) or repurchase amount of 40 billion yen, at its July 30, 2018 meeting. The cumulative number of shares repurchased up to October 29, 2018 is 24.6 million shares, at a total repurchase amount of 16.5 billion yen.

We have also incorporated Passion for SDGs 2018: The Daiwa Securities Group's SDGs Declaration in the current medium-term plan to better clarify our commitment to management and put SDGs at the core of our strategy.

In this declaration, we express the strong intent of the Daiwa Securities Group to work to enrich people's lives and the communities in which they live by successfully pursuing both economic value and solving social problems.

We intend to evolve these initiatives in the future by engaging in dialog with all of our stakeholders.

I would like to express my deepest appreciation to our shareholders for your continued support.

November 2018
Daiwa Securities Group Inc.
President and CEO,
Seiji Nakata

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