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Date:　October 28, 2011 (Friday)
Speaker:　Nobuyuki Iwamoto, Deputy President, COO and CFO

Q1:There was a 10 billion yen increase for the cost reduction plan compared to the initial plan. What is the main reason for the increase?

A1:Increase of 10 billion yen is mainly from reducing SG&A in overseas operations and cutting IT costs. In the process of considering the downsizing or closure of loss-making operations, we were able to plan an additional 10 billion yen in cost reduction.

Q2:What is the time schedule for the reduction of over 300 personnel in overseas operations?

A2:Personnel reduction in overseas operations has already been implemented in the first half of FY2011 and planned to be completed by second half of FY2011.

Q3:What is the reason for the increase of personnel in Daiwa Securities Group Inc. from the last quarter?

A3:The increase is due to the streamlining of middle-back offices of 3 group companies, Daiwa Securities, Daiwa Securities Capital Markets, and Daiwa Securities Group Inc. Personnel of these departments in Daiwa Securities and Daiwa Securities Capital Markets are now affiliated to Daiwa Securities Group Inc.

Q4:Were there any temporary losses in the bond trading of the Global Markets Division?

A4:There seemed to be a temporary loss of 3 billion yen in the Global Markets Division due to the rapid changes in currency and interest rate market.

Q5:Will there be any impact to revenues by reducing IT costs and SG&A in overseas operations?

A5:We cannot say that there will be no effect to revenues, however, because only non-profitable business fields such as PTS and CFD are the targets of cost cut, the impact to revenues will be very small. We do not consider the cost reduction for business lines that will have a substantial impact to revenues.

Q6:What is the forecast for sales of equity investment trusts?

A6:As it can be seen from the graph on page 25 in the presentation material, sales and net increase ratio of equity investment trusts are both increasing.

Q7:After downsizing or closure of loss-making overseas operations, which division will be profitable? What is the market presupposition? If overseas operations do not improve, will there be further downsizing or closure?

A7:If the adverse market environment continues, it will be difficult for the overseas operations to recover despite implementation of downsizing or closing the loss-making operations. There is a possibility of further downsizing or closure as may be necessary, with considering the market environment.

Q8:Will there be any tax effects by internal reorganization?

A8:Tax effects are unclear at this point, however, it may have positive effects if the new company, an integration of Daiwa Securities and Daiwa Securities Capital Markets, becomes a surplus.

Q9:There were extraordinary losses involved in improving earnings structure this quarter, will there be any temporary losses like this in the future?

A9:It is not clear at this point, however, regarding the reduction of IT costs, we assume a decrease in depreciation from restraining IT investments. Therefore, we do not consider losses on sales and retirement of systems to increase.