(E06228) Stock Price

**Daiwa Securities Business Overview**

Daiwa Securities is a leading comprehensive securities company in Japan, providing a wide range of financial services including securities trading, underwriting, and investment advisory services. The company handles all aspects of securities operations, from brokering transactions in equities and bonds to underwriting services that support corporate fundraising and providing investment advice to individual investors.

The company serves diverse customers ranging from individual investors to major institutional investors. For individuals, it offers asset management consulting and sales of equities and investment trusts. For corporations, it provides services including fundraising support, IPO assistance, and M&A advisory. Revenue is primarily generated from trading commissions, underwriting fees, and advisory fees.

As the core company of the Daiwa Securities Group, it operates both retail and domestic wholesale divisions. The retail division provides services to individual investors through branch offices nationwide, while the wholesale division delivers sophisticated financial services to corporate clients and institutional investors. Together, these divisions play a key role in the group's overall comprehensive financial strategy.

Daiwa Securities is currently implementing its medium-term management plan "Passion for the Best" 2023, with fiscal year 2023 as the final year, under the slogan "Best Partner Creating the Future Together." The company has set clear numerical targets: consolidated return on equity of 10% or higher and consolidated ordinary profit of 200 billion yen or more. It aims to build a stable revenue structure less vulnerable to market fluctuations. Notably ambitious targets include hybrid-related ordinary profit of 500 billion yen or more and assets under management of 90 trillion yen or more, demonstrating the company's serious commitment to strategic transformation.

The company's priority investment areas are transitioning to an asset management business model and advancing its hybrid strategy. It is shifting from a traditional transaction fee-based business to a stable revenue model based on customer asset balances, targeting a balance-based revenue ratio of 50% or higher by the fourth quarter of fiscal year 2023. The hybrid strategy focuses on creating high-value-added products and services by combining traditional securities operations with alternative investment opportunities, thereby diversifying the revenue structure. This approach achieves differentiation from competitors and builds a framework capable of addressing diverse customer needs.

For new market development, the company is actively capturing the "shift from savings to investment" trend, leveraging government initiatives such as NISA expansion and iDeCo improvements. In the retail division, it is focusing on new business development through partnerships with external channels and expanding solution business through a total asset approach. In the wholesale division, it aims to expand its customer base through diverse products and sophisticated solutions, while strengthening coordination with the retail division to create synergies.

Regarding technological innovation, the company has adopted "optimal blend of digital and real" as its basic policy and is actively promoting digitalization. While advancing digital transformation in mass marketing and customer service, it is focusing on expanding digital talent and promoting data-driven business. Furthermore, the company is strengthening efforts to address social issues, including transition finance, demonstrating its commitment to realizing a sustainable society. Through these initiatives, the company aims to build a resilient business foundation capable of adapting to environmental changes.