FY2009, the first year of the three-year Medium-Term Management Plan, became a very special year for Daiwa Group. We executed our equity offering for the first time in 20 years, and dissolved the joint venture of the wholesale investment banking business which had lasted for 10 years. Daiwa Group also implemented several measures to increase AUM and expand business in Asia and emerging market countries, in order to achieve goals stipulated by the Medium-Term Management Plan.

As for FY2010, global economy should gradually recover, led by China and other Asian and emerging countries, despite some downside risk. Daiwa Group continues to contribute to the development of society and economy through reallocation of excess capital held by households and institutional investors to growth opportunities in both domestic and overseas markets.

This fiscal year, Daiwa will continue to deliver high quality solutions by practicing "Speed / Cooperation / Originality" through daily operations and conduct the action plan in order to fulfill customer needs.

• Expand our client base, closely liaising among the Group companies to maximize group synergy, and provide unique value-added solutions to each customer segments.
  
• Strengthen business in rapidly growing regions such as Asia and emerging countries, and establish Asian region as our "Home Market".
  
• Attain sustainable growth by strengthening internal control on a global base and winning the trust from the stakeholders.
  
  

Action Plans of the Operating Segments

Retail Business

1. Expand client base by reinforcing consulting service
2. Grasp client needs and offer attractive products
3. Reduce cost by streamlining and rationalizing administrative work by using information technology

Wholesale & Investment Business

1. Increasing brokerage commission and diversify revenues and aim to attain top 5 broker ranking position in Asian equities
2. Supply variety of products reflecting change in markets and risk appetite. Develop new derivative business
3. Strengthen domestic investment banking business with "sector coverage style" and refortify investment banking business in Asia
4. Strengthen Pan-Asia research while maintaining top research position in Japan
5. Further focus on global risk management. Improve global profit-and-loss management control
6. Maximize returns from principal investments

Asset Management Business

1. Enhance global research and strengthen Asian equity and foreign bonds investment platform
2. Expand product lineup by introducing new funds. Strengthen product development capability
3. Reinforce business base by providing market and product information in timely manner. Focus on changes in market environment and customer needs

Research and IT Systems Business

1. Support the Group's Asian business and provide client-oriented information
2. Continue to promote investment banking business support
3. Contribute to the Group's global business strategy such as cost reduction by improving system development and management capability