PASSION FOR THE BEST
FinancialsSummary of Business Results
Financial Overview
Financial Summary Operating Reveunes by Business Sector


Highlights of 1Q FY2010 Earnings Results

  • 1Q net operating revenues were Y71.6bil, down 27% q/q. By segment, net operating revenues slightly decreased in retail while increased in asset management, whereas those in global markets and global investment banking significantly decreased.
  • 1Q SG&A was Y87.8bil, down 3% q/q, mainly due to the decrease in personnel costs.
  • 1Q consolidated ordinary income was a loss of Y8.1bil and net income was a loss of Y1.1bil.
  • Consolidated annualized ROE for 1Q : -----
    ( Daiwa Securities : 10.3%, Daiwa Securities Capital Markets : ----- )


Financial Summary (Consolidated)
(millions of yen)
FY2010 FY2009
4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)		 4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)
Operating revenues       94,151 116,549 183,615 105,631 132,119
Commissions
       56,106 57,083 67,256 58,008 70,514
Net gain/loss on trading
       10,724 39,951 7,754 28,536 34,712
Net gain/loss on private equity and other securities
       -1,924 -4,917 86,532 -4,463 -1,567
Interest and dividend income
       17,516 11,775 12,344 13,792 16,815
Other revenues
       11,729 12,655 9,726 9,756 11,644
Interest expenses
       13,993 9,827 10,982 11,340 15,508
Cost of sales
       8,544 8,627 7,122 7,152 9,247
Net operating revenues       71,613 98,094 165,509 87,137 107,364
SG&A       87,859 90,946 99,775 85,569 86,552
Operating income       -16,245 7,147 65,733 1,567 20,812
Non-operating income
       8,517 3,053 2,134 1,335 2,814
Non-operating expenses
       458 39 -22 866 798
Ordinary income       -8,187 10,160 67,891 2,037 22,827
Net income       -1,191 -2,798 26,366 1,991 17,870


Trends in Net Operating
Revenues and SG&A

Trends in Net Operating Revenues and SG&A
Trends in Ordinary Income and Net Income

Trends in Ordinary Income and Net Income
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Segment Information

(millions of yen)
Segment Net operating revenue Ordinary income
FY2010 FY2009 FY2010 FY2009
1Q 1Q
Retail(*1)
 46,059 193,820 11,536 40,475
Global Markets(*2)
 7,059 82,748 -19,295 -14,126
Global Investment Banking(*3)
 7,225 56,064 -3,575 9,181
Asset Management(*4)
 9,049 31,492 3,738 11,208
Investment(*5)
 -687 74,780 -2,658 65,981
Others(*6)
 6,098 21,581 -446 -7,928
Total before adjustment
 74,805 460,488 -10,700 104,792
Adjustment
 -3,191 -2,382 2,513 -1,874
Consolidated total
 71,613 458,105 -8,187 102,917
Main companies for each segment are as follows;
(*1) Daiwa Securities, Hinode Securities
(*2) Daiwa Securities Capital Markets (Global Markets Division)
(*3) Daiwa Securities Capital Markets (Global Investment Banking Division), Daiwa Corporate Advisory Partners, Sagent Advisors Inc.*
(*4) Daiwa Asset Management, Daiwa SB Investments*, Daiwa Real Estate Asset Management, Daiwa Fund Consulting
(*5) Daiwa PI Partners, Daiwa Securities SMBCPI, Daiwa SMBC Capital (Daiwa SMBC Capital changed company name to Daiwa Corporate Investment on July 1, 2010.)
(*6) Daiwa Securities Group Inc. Daiwa Securities Capital Markets (Financial Division and others), Daiwa Institute of Research HD,Daiwa Institute of Research, Daiwa Institute of Research Business Innovation, Daiwa Securities Business Center, Daiwa Property, Daiwa Sanko
*Equity in earnings of affiliates is included in ordinary income.

Operating Revenues by Business Sector (Consolidated)

(millions of yen)
FY2010 FY2009
4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)		 4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)
Total commission       56,106 57,083 67,256 58,008 70,514
Equity
       13,487 13,681 12,713 14,524 15,467
Fixed income
       186 183 186 167 160
Investment trust
       30,272 27,558 29,462 27,123 24,120
Investment banking
       8,794 11,715 20,433 11,886 26,612
Others (life insurance sales commission etc)
       3,366 3,943 4,459 4,306 4,153
Total gain/loss on trading       10,724 39,951 7,754 28,536 34,712
Gain/loss on trading (Equity)
       -15,315 6,922 688 2,184 14,685
Gain/loss on trading
(Bond and forex)
       26,039 33,029 7,066 26,351 20,026
Net gain/loss on private equity and other securities       -1,924 -4,917 86,532 -4,463 -1,567

<<Reference>>
Equity & Bond Division Revenues (Trading gain/loss + net financial income)*
(billions of yen)
FY2010 FY2009
4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)		 4Q
(1-3)		 3Q
(10-12)		 2Q
(7-9)		 1Q
(4-6)
Total revenues in equity & bond division       20.5 41.0 10.5 32.0 37.5
Equity
       5.0 8.0 10.0 6.0 16.5
Bond
       15.5 33.0 0.5 26.0 21.0
* Managerial accounting basis

Trends in Operating Revenues
by Business Sector

Trends in Operating Revenues by Business Sector
Trends in Gain/loss on Trading

Trends in Gain/loss on Trading
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