As the world economy has slowed down and global financial markets remain volatile, we are yet to see an immediate turn around in the business environment for FY2009. Since the market has not recovered its function as a financial intermediary, capital flows between investors and issuers are still minimal. Under such circumstances, we believe that Daiwa Securities Group should obtain a strong trust from our customers and stabilize the financial and capital markets through providing highly value added solutions.
We have formulated our three year Medium-Term Management Plan, “Passion for the Best” 2011. We will conduct “Realignment of Business Focus” to meet our customers’ high expectations. Each employees will also practice “Speed / Cooperation / Originality” to maximize group synergy. Accordingly, we envision ourselves to become “The Stakeholder-trusted Excellent Company Representing Japan”.
Fiscal year 2009 is the first step and each business unit will implement its action plans.

• Serve wealth management customers with ideal financial products and promote the “savings to investments” trend.
  
• Improve consultation service to corporate clients to prepare for upcoming changes in the industrial structures. We will also offer improved financial products with a highly advanced risk management.
  
• Focus on Asia and emerging markets will continue. We will actively utilize the Group’s network and tighten collaboration with our alliance partners, and capture cross border business opportunities.
  
  

Action Plans

- Retail Business

1. Reinforce marketing by reorganizing sales and support structure
2. Emphasize equity and fixed income products together with existing investment trusts, annuities and wrap accounts
3. Improve Daiwa Direct service menu for more active investors
4. Efficient administrative work with IT innovation

- Wholesale & Investment Business

1. Expand product and service lineup, and provide best solutions to maximize client satisfaction
2. Stabilize revenues by improving trading positions and manage risk on a global basis
3. Continue focus on Asia
4. Establish a global M&A advisory platform
5. Create proprietary fund as a first step to manage full scale funds

- Asset Management Business

Daiwa Asset Management

1. Improve fund performance by further emphasizing global research and diversifying approaches to generate returns
2. Develop large-scale funds by strengthening product development capability
3. Improve marketing based on investor and distributor needs

Daiwa SB Investments

1. Improve fund performance by strengthening collaboration with research division
2. Expand product lineup with new funds
3. Increase AUM by providing client-oriented solutions, information and sales support

- Research and IT Systems Business

1. Provide support to improve broker rankings and customer satisfaction, and expand the Group’s business in Asia
2. Support IB business, including privatization transactions
3. Enhance flexible and efficient IT development and system management
4. Contribute to the Group’s global business strategy and cost reduction by leading the Group’s system functions