FY2024 was an important year, characterized by a strong sense of global geopolitical risks and political change, and containing a historical turning point in the form of Japan breaking away from a prolonged period of deflation to return to "a world with interest rates." The introduction of the new NISA was the catalyst for an acceleration of the "shift from savings to investment," and among companies there was a further pickup in corporate actions aimed at improving capital efficiency. On a yearly basis the stock market declined, but in July the Nikkei Stock Index hit a record high of JPY 42,224. Moreover, the Bank of Japan raised policy rates to the highest level in 17 years, making the structural transformation of the Japanese economy increasingly clear.

It was in these circumstances that we made a robust start to the "Passion for the Best" 2026 Medium-term Management Plan, which is rooted in the basic policy of "maximizing the value of customer assets". Along with improvement in consolidated performance, base income, on which we place particular emphasis, also expanded more rapidly than expected. Furthermore, in line with our discontinuous growth strategy we achieved capital and business alliances with external companies, including Aozora Bank, Ltd. and The Japan Post Insurance Company, Ltd., which was a major step towards expanding our business platform.

Although the global situation remains uncertain as we look ahead to FY2025, Japan has reached a turning point in which the role and responsibilities that should be filled by the Daiwa Securities Group are becoming increasingly important. This fiscal year will be the second of the Medium-term Management Plan, and we will forge ahead to execute the action plan below with a sense of urgency, and with the goal of establishing a more robust revenue base. Maximizing the value of customer assets is an unchanging need of our clients and, having set this as our highest priority, we will provide high-quality consulting and solutions based on accurate analysis of the environment and a deep understanding of customer needs, helping Japan to achieve its objective of becoming a leading asset management center and an investment powerhouse, and contributing to the creation of a prosperous future through the financial and capital markets.

• *Base income: total ordinary income from Wealth Management, Securities Asset Management, and Real Estate Asset Management