Daiwa Securities Group formulated a three-year Medium-Term Management Plan, “Passion for the Best” 2026, in April 2024, covering the period through fiscal year 2026. Under our basic group management policy of “Maximizing Customer Asset Value,” we have been implementing a wide range of initiatives.

In fiscal year 2025, the second year of our Medium-Term Management Plan, U.S. trade policies took full effect, and the global economy underwent structural changes. In Japan, a new administration came into power following a general election. Financial markets saw policy interest rates rise to levels not seen in approximately 30 years, marking a shift to a “world with interest rates.” Meanwhile, supported by corporate governance reforms and expectations for the new administration, overseas capital inflows continued, with the Nikkei Stock Average reaching a record high of 59,332 yen. However, toward the end of March, rising tensions in the Middle East increased global uncertainty, resulting in significant market volatility.

Even in such an environment, we have remained firmly committed to “Maximizing Customer Asset Value” as the unwavering cornerstone, we have continued to deliver consulting services based on a deep understanding of each individual customer and providing optimal solutions. As a result, base income^*, a key indicator for your group, increased at a pace exceeding our expectations, further enhancing the stability of our consolidated performance. We believe that the initiatives under our Medium-Term Management Plan are steadily delivering tangible results.

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

Fiscal year 2026 marks the final year of our Medium-Term Management Plan. Looking ahead, we will continue to accurately respond to changes in the political, economic, and social environment while sincerely addressing the diverse needs of our customers. Through the provision of high-quality and optimized solutions, we will further accelerate the shift “from savings to investment” and contribute to the sustainable growth of Japan’s economy and the creation of a prosperous future.

We would like to express our deepest appreciation to our shareholders for your continued support.