Since the financial crisis in 2008, advantages of Asian nations in the world economy have become further apparent while the developed nations moved toward stricter financial regulations. Within Asia, Japan is assumed to face economic and market situations quite insecure for a certain period, as a consequence of the large earthquake and tsunami that hit the Tohoku region in March, 2011.

However, fundamentals of Japanese economy are estimated to recover by investments in infrastructure and environmental facilities over FY2011. Daiwa Securities Group will contribute to vigorous economic recovery of Japan and support the relief and recovery efforts through the capital markets, while continuing to serve as a bridge between the vast financial assets accumulated in Japan and the strong funding needs of Asia and emerging nations.

In light of such circumstances, Daiwa Securities Group will thereby reform its business model and improve operational efficiency and group governance system by several methods such as streamlining corporate headquarters, and pursue revenue growth through personnel reinforcement in its sales divisions.

• Expand our client base, by strong cooperation among the Group companies, and providing attractive products and services to various client needs
  
• Strengthen our wholesale business by fully-fledged operations in Asia and emerging countries
  
• Improve operational efficiency and establish a robust business structure capable of earning profits in any economic condition
  
  

Action Plans of the Operating Segments

Retail Business

1. Expand client base by reinforcing consulting services and enhancing client contacts
2. Provide attractive products and services to meet customer needs
3. Reduce cost by narrowing down IT investments

Wholesale Business

1. Strengthen abilities to develop and offer various products through the Group companies' cooperation
2. Expand product and service lineup to attain top 5 position in Asian equity brokerage ranking
3. Enhance deal origination abilities and start to carry full scale operation in investment banking divisions of Asia
4. Further focus on global risk management and improve global profit-and-loss management control

Asset Management Business

1. Enhance global research and investment platform focusing on Asian market
2. Develop new product lineup-introduce new large funds
3. Provide attractive products and services to meet customer and distributor needs

IT Systems and Think Tank Business

1. Enhance the Group presence by providing client-oriented information
2. Add value to client business through consulting service
3. Contribute to the Group's global business strategy and the cost reduction

Investment Business

1. Maximize returns from the existing portfolio
2. Invest and raise funds in a timely and appropriate manner
3. Enhance risk management system and progress further cost reduction