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Daiwa Securities Group Inc. 2Q FY2025 Earnings Announcement The purpose of this material is to provide information on our business performance through the second quarter of FY2025 and our management vision for the future, and is not intended as a solicitation to invest in securities issued by the Company. This document was prepared based on information available to the public as of November 4, 2025. The opinions and forecasts contained in this material are based on information available as of November 4, 2025. The opinions, forecasts, and other statements contained in this material are based on our judgment at the time the material was prepared, and we do not guarantee or promise the accuracy or completeness of such information, The Company does not guarantee or promise the accuracy or completeness of the information, and may change its forecasts in the future without notice. November 4, 2025
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2 Financial Results for the Second Quarter of FY2025 ⚫Highlights 3-4 ⚫Financial Summary 5-8 ⚫B/S and Financial Management Summary 9-10 ⚫P/L Summary 11 ⚫Breakdown of SG&A 12-13 ⚫Overseas Operations 14 ⚫Segment Information 15-22 ⚫Reference 24-34 Definitions of the terms used in this document WM Wealth Management AM Asset Management GM&IB Global Markets & Investment Banking GM Global Markets GIB Global Investment Banking Base income The sum of ordinary income of Wealth Management Division, Securities Asset Management, and Real Estate Asset Management Asset-based revenues Agency fee for investment trust, Investment advisory and account managed fees, Bank agency fees and other, revenues from asset-based fee plan for investment trusts, etc. FICC Fixed Income, Currency and Commodities
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3 Highlights (1H/FY2025, YoY) Although consolidated ordinary income declined due to the absence of the gain on negative goodwill recorded in the previous fiscal year, combined results of the three main divisions recorded revenue and income growth. Profit attributable to owners of parent reached its highest level in 12 years. ◼ Base income*1, a key indicator of stable earnings, rose 23.7% to ¥78.1 bn. ◼ Annualized ROE for the 1H: 9.5% ◼ Asset under custody (Daiwa Securities) has surpassed ¥100 tn, reaching a record high. ◼ Wealth Management Division accurately captured customers’ asset management needs through total asset consulting, and WM Division (Daiwa Securities) achieved its highest ordinary income in the past 10 years. ➢ Asset-based revenues*2 reached a record high of ¥57.4 bn. Contract AUM of wrap account service (¥5.3 tn*3) hit a record high. ➢ Net asset inflow*4 remained at a high level (¥723.6 bn). ➢ For Daiwa Next Bank, yen deposit balance exceeded ¥4 tn, and ordinary income reached a record high of ¥10 bn. ◼ AUM in both Securities and Real Estate Asset Management continued to expand steadily. ➢ Securities Asset Management increased revenues and income. Net fund inflows continued, leading to record highs in assets under management*5 (¥33.5 tn) and ordinary income (¥16.0 bn). ➢ Real Estate Asset Management saw increased revenues but decreased income. Assets under management*5 reached a record high (¥1.7 tn). ◼ Global Investment Banking saw revenue and income growth as M&A-related revenue reached a record high. ¥110.6 bn ¥78.9 bn ¥327.8 bn ¥97.9 bn ¥77.7 bn ¥310.2 bn FY2025 1H FY2024 1H Profit attributable to owners of parent Net operating revenues Ordinary income Consolidated earnings results % Changes vs 1H/FY2024 +5.7% -11.5% +1.5% *1 For the trend in base income, see p.8 *2 For the trend in asset-based revenues, see p.28 *3 Includes GM&IB Division Interim dividend: 29yen, dividend pay-out ratio: 51.4% *4 For the trend in net asset inflow, see p.27 *5 Publicly offered securities investment trusts assets under management of Daiwa Asset Management *6 Assets under management of Daiwa Real Estate Asset Management and Samty Residential Investment Corp.
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4 Summary (2Q/FY2025, QoQ) ◼ Wealth Management Division deepened total asset consulting, leading to an increase in sales of a wide range of products. WM Division (Daiwa Securities) achieved its highest ordinary income since the 3Q of FY2013. ◼ Assets under management continued to expand in both Securities Asset Management and Real Estate Asset Management. Alternative Asset Management recorded a loss. ◼ Global Markets & Investment Banking saw a significant recovery. Global Markets increased equity revenue as customer flow grew. In Global Investment Banking, domestic M&A-related revenue reached a record high, and equity underwriting performed strongly. ◼ Annualized ROE: 11.6% Profit attributable to owners of parent Net operating revenues Ordinary income +24.0% ¥47.7 bn ¥172.6 bn ¥54.1 bn +52.8% +11.2% FY2025 2Q % Changes vs 1Q/FY2025Consolidated earnings results In addition to expanding revenue from stock-related assets, flow revenue grew, resulting in higher revenue and income. Base income*¹ expanded significantly. (¥ Billions) (¥ Billions) (¥ Billions) Net Operating Revenues Ordinary Income Profit Attributable to Owners of Parent *1 For the trend in base income, see p.8 144.3147.8 164.5 149.1 161.0161.5 174.2 155.2 172.6 0 50 100 150 200 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 FY2025 40.8 40.8 56.7 37.7 72.8 63.0 51.0 43.7 54.1 0 20 40 60 80 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 FY2025 29.7 28.4 39.5 23.9 53.7 46.6 29.9 31.2 47.7 0 20 40 60 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 FY2025
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5 Financial Summary Consolidated * Shareholders' equity = Owners’ equity + Accumulated other comprehensive income 44 yen Full-year minimum dividend FY2024-FY2026 29 yen FY2025 Interim Dividend FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H Operating revenues 354,330 336,748 345,577 326,400 375,349 15.0% 5.9% 689,688 701,750 1.7% 1,372,014 Net operating revenues 161,099 161,532 174,218 155,252 172,628 11.2% 7.2% 310,238 327,880 5.7% 645,990 SG&A 119,424 124,496 121,302 119,074 122,785 3.1% 2.8% 233,448 241,859 3.6% 479,247 Ordinary income 72,887 63,061 51,027 43,716 54,192 24.0% -25.6% 110,627 97,908 -11.5% 224,716 Profit (loss) attributable to owners of parent 53,791 46,628 29,954 31,237 47,726 52.8% -11.3% 77,785 78,964 1.5% 154,368 Total assets 33,694,875 36,708,372 36,024,346 34,617,316 36,915,300 33,694,875 36,915,300 36,024,346 Net assets 1,819,449 1,916,791 1,923,287 1,893,724 1,944,434 1,819,449 1,944,434 1,923,287 Shareholders' equity* 1,556,485 1,632,234 1,639,738 1,614,409 1,667,999 1,556,485 1,667,999 1,639,738 EPS (¥) 38.18 33.04 21.19 22.20 34.31 55.31 56.44 109.53 BPS (¥) 1,103.61 1,156.39 1,158.82 1,154.60 1,201.74 1103.61 1,201.74 1,158.82 ROE (Annualized) 13.9% 11.7% 7.3% 7.7% 11.6% 10.1% 9.5% 9.8% FY2024(¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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6 Segment Summary ※ Results for each segment are calculated based on the management accounting of each group company. For equity-method affiliates, equity in earnings (losses) of affiliates are recorded in the relevant segment. Consolidated (¥ Millions) FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H 60,673 66,068 66,455 62,905 74,689 18.7% 23.1% 123,316 137,595 11.6% 255,841 WM Division (Daiwa Securities) 53,430 59,655 59,837 55,500 65,759 18.5% 23.1% 110,196 121,259 10.0% 229,688 Daiwa Next Bank 6,458 5,629 5,842 6,599 7,922 20.0% 22.7% 11,411 14,521 27.3% 22,884 29,188 19,562 30,062 28,213 24,996 -11.4% -14.4% 52,893 53,210 0.6% 102,517 Global MarketsSecurities AM 14,300 15,143 14,963 15,192 17,158 12.9% 20.0% 27,853 32,350 16.1% 57,960 Real Estate AM 9,175 7,225 6,142 9,665 8,039 -16.8% -12.4% 16,251 17,704 8.9% 29,619 Global Investment BankingAlternative AM 5,712 -2,806 8,956 3,355 -201 - - 8,788 3,154 -64.1% 14,938 55,467 65,714 61,837 49,827 60,745 21.9% 9.5% 106,644 110,572 3.7% 234,196 Securities Asset ManagementGM 36,395 40,321 36,031 32,554 39,281 20.7% 7.9% 72,691 71,835 -1.2% 149,044 Real Estate Asset ManagementGIB 19,072 25,393 25,805 17,272 21,464 24.3% 12.5% 33,953 38,737 14.1% 85,151 15,770 10,186 15,863 14,304 12,197 - - 27,384 26,502 - 53,435 161,099 161,532 174,218 155,252 172,628 11.2% 7.2% 310,238 327,880 5.7% 645,990 FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H 15,949 21,057 23,179 19,734 29,565 49.8% 85.4% 36,427 49,300 35.3% 80,664 WM Division (Daiwa Securities) 12,265 18,283 20,038 15,610 23,933 53.3% 95.1% 30,301 39,544 30.5% 68,623 Daiwa Next Bank 4,280 3,316 3,679 4,355 5,702 30.9% 33.2% 7,112 10,058 41.4% 14,108 24,669 29,217 12,216 14,772 12,072 -18.3% -51.1% 35,984 26,844 -25.4% 77,418 Global MarketsSecurities AM 7,130 7,037 7,038 7,517 8,493 13.0% 19.1% 13,766 16,011 16.3% 27,841 Real Estate AM 9,090 8,883 7,163 6,935 5,905 -14.9% -35.0% 12,982 12,840 -1.1% 29,029 Global Investment BankingAlternative AM 8,448 13,296 -1,985 318 -2,326 - - 9,235 -2,007 - 20,547 8,161 15,229 13,319 5,001 14,861 197.1% 82.1% 14,189 19,862 40.0% 42,738 Securities Asset ManagementGM 6,615 9,072 6,323 2,639 8,414 218.8% 27.2% 13,609 11,054 -18.8% 29,005 Real Estate Asset ManagementGIB 1,151 5,566 6,985 903 6,086 573.8% 428.8% -946 6,989 - 11,605 24,106 -2,443 2,311 4,207 -2,306 - - 24,027 1,901 - 23,895 72,887 63,061 51,027 43,716 54,192 24.0% -25.6% 110,627 97,908 -11.5% 224,716 32,171 36,978 37,381 34,188 43,963 28.6% 36.7% 63,175 78,152 23.7% 137,535 % Change vs 2Q/FY24 Other/Adjustments Base Income Consolidated total % Change vs 1Q/FY25 FY2024 Ordinary income WM AM FY2025 GM&IB FY2024 FY2024 Net operating revenues % Change vs 1Q/FY25 WM AM GM&IB % Change vs 2Q/FY24 FY2024 Other/Adjustments Consolidated total FY2025 % Change vs 1H/FY24 % Change vs 1H/FY24
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1Q 2Q 3Q 4Q 1Q 2Q FY2024 FY2025 7 Segment Summary ※ Results for each segment are calculated based on the management accounting of each group company. For equity-method affiliates, equity in earnings (losses) of affiliates are recorded in the relevant segment. Consolidated WM Division AM Division GM&IB Division (¥ Billions) Net operating revenues Ordinary income Consolidated Ordinary Income / Base Income 1Q 2Q 3Q 4Q 1Q 2Q FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q FY2024 FY2025 20.4 15.9 21.0 23.1 19.7 29.5 62.6 60.6 66.0 66.4 62.9 74.6 WM Division (Daiwa Securities) Daiwa Next Bank 6.0 8.1 15.2 13.3 5.0 14.8 51.1 55.4 65.7 61.8 49.8 60.7 GM GIB 31.0 32.1 36.9 37.3 34.1 43.9 37.7 72.8 63.0 51.0 43.7 54.1 1 2 3 4 5 6 千 WM Division AM Division GM&IB Division Other/Adjustments Base Income 23.7 29.1 19.5 30.0 28.2 24.9 11.3 24.6 29.2 12.2 14.7 12.0 Securities AM Real Estate AM Alternative AM
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▲ 20 0 20 40 60 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 WM Division Securities AM Real Estate AM Base income 0 50 100 150 200 250 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1H WM Division Securities AM Real Estate AM Base income 8 Trends in Consolidated Ordinary Income and Base Income Consolidated Consolidated Ordinary Income / Base Income (annually) Consolidated Ordinary Income / Base Income (quarterly) ◼ Base income for the 1H totaled at ¥78.1 bn, +23.7% YoY. ◼ On track to surpass the Medium-term Management Plan’s final-fiscal year target of ¥150.0 bn. (¥ Billions) 43.9 29.5 8.4 5.9 54.1 53.3 87.8 73.1 114.2 137.5 115.1 135.8 86.9 174.5 224.7 97.9 78.1 ※ Results for each segment are calculated based on the management accounting of each group company. For equity-method affiliates, equity in earnings (losses) of affiliates are recorded in the relevant segment.
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9 B/S Summary ※ Figures in parentheses indicate changes from March 31, 2025. (¥ Billions) Consolidated Balance Sheet (September 30, 2025) Total assets: ¥36.91 tn Net assets: ¥1.94 tn Shareholders‘ equity**: ¥1.66 tn ◼ 83.4% of total assets have high liquidity*. * Cash and deposits + Short-term investment securities + Trading products + Loans secured by securities ◼ Shareholders’ equity** increased by ¥28.2 bn from March 31, 2025. ** Shareholders‘ equity = Owners’ equity + Accumulated other comprehensive income Consolidated Current assets 35,131 (856) Current liabilities 31,854 (1,158) Cash and deposits 4,535 (778) Trading products 6,886 (-550) Short-term investment securities 1,899 (312) Trading securities and other 3,660 (-1,150) Trading products 10,432 (2,104) Stocks, Convertible bonds 179 (24) Trading securities and other 7,151 (1,607) Bonds 3,355 (-929) Stocks, Convertible bonds 282 (56) Other 124 (-245) Bonds 4,408 (311) Derivatives transactions 3,226 (599) Beneficiary certificates 34 (4) Loans payable secured by securities 15,226 (-218) Other 2,425 (1,234) Deposits for banking business 4,780 (483) Derivatives transactions 3,280 (497) Short-term loans payable 1,579 (164) Operational investment securities 108 (1) Current portion of bonds 370 (-29) (after allowance for possible investment losses) Loans secured by securities 13,910 (-1,467) Non-current assets 1,783 (34) Long-term liabilities 3,110 (-288) Property, plant and equipment 938 (-3) Bonds payable 1,143 (-74) Intangible assets 145 (8) Long-term loans payable 1,814 (-222) Investments and other assets 699 (30) Total liabilities 34,970 (869) Listed stocks 154 (20) Net assets 1,944 (21) Unlisted stocks 37 (-1) Owners' equity 1,451 (8) Affliated company stocks, etc. 339 (4) Accumulated other comprehensive income 216 (19) Other 168 (6) Non-controlling interests 270 (-6) Total Assets 36,915 (890) Total liabilities and net assets 36,915 (890)
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10 Financial Management (Regulatory Capital & Regulatory Liquidity) Consolidated leverage ratio Consolidated Liquidity Coverage Ratio 【Regulatory Capital (Basel III)】 (As at June 30, 2025) ◼ Consolidated Total Capital Ratio: 21.83% ◼ Consolidated Tier 1 Capital Ratio: 21.73% ◼ Consolidated Common Equity Tier 1 Capital Ratio: 19.08% ◼ Consolidated Leverage Ratio: 5.45% ※ Figures are as at the end of each quarter 【Regulatory Liquidity (Basel III)】 (Daily average Jul. – Sept. 2025) ◼ Consolidated Liquidity Coverage Ratio: 142.1% Consolidated Consolidated Capital Adequacy Ratio 1,495 1,502 1,498 1,529 1,557 1,470 1,615 1,547 1,550 1,305 1,308 1,299 1,331 1,367 1,274 1,413 1,351 1,355 21.57% 22.12% 22.40% 21.58% 20.96% 20.45% 21.50% 21.84% 21.83% 18.83% 19.26% 19.42% 18.78% 18.41% 17.72% 18.82% 19.07% 19.08% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2023 FY2024 FY2025 Total qualifying capital (¥ billions) Common equity tier 1 (¥ billions) Consolidated total capital ratio Consolidated common equity tier 1 capital ratio 26,077 27,268 24,439 24,461 28,623 26,665 29,240 28,859 28,286 1,491 1,495 1,489 1,520 1,554 1,462 1,605 1,540 1,544 5.72% 5.48% 6.09% 6.21% 5.43% 5.48% 5.48% 5.33% 5.45% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2023 FY2024 FY2025 Total exposures (¥ billions) Tier 1 capital (¥ billions) Consolidated levarage ratio 2,729 2,933 2,930 2,886 2,635 2,632 2,799 2,815 2,642 2,800 2,077 2,242 2,229 2,134 2,009 1,926 1,957 1,970 1,908 1,970 131.3% 130.7% 131.4%135.2% 131.1% 136.6%142.9%142.9% 138.4% 142.1% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 FY2025 High-quality liquid assets (¥ billions) Net cash outflows (¥ billions) Consolidated liquidity coverage ratio
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11 P/L Summary ※ Comparisons of increase/decrease are quarter-on-quarter unless otherwise noted from this page onward. ◼ Commissions received increased (+17.8%). • Brokerage commission* was ¥26.9 bn (+27.5%). • Underwriting and secondary offering commissions* were ¥10.8 bn (+21.7%). • Distribution commission* was ¥6.2 bn (+31.8%). • M&A related commission* was ¥13.8 bn (+23.5%). * Breakdown of total commission received (See p.24). • Recorded extraordinary income from the partial monetization of our interest in Tokiwabashi Tower. Consolidated FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H Operating revenues 354,330 336,748 345,577 326,400 375,349 15.0% 5.9% 689,688 701,750 1.7% 1,372,014 Commission received 98,355 109,796 114,899 100,398 118,300 17.8% 20.3% 191,793 218,698 14.0% 416,489 Net trading income 28,704 28,021 23,133 22,310 23,375 4.8% -18.6% 56,218 45,685 -18.7% 107,373 Net gain (loss) on private equity 3,880 -195 8,490 1,797 -1,164 - - 4,065 633 -84.4% 12,360 Financial revenue 169,568 171,885 163,482 160,616 175,175 9.1% 3.3% 346,584 335,792 -3.1% 681,952 Other operating revenue 53,823 27,240 35,571 41,277 59,662 44.5% 10.8% 91,027 100,940 10.9% 153,839 Financial expenses 149,145 153,661 142,541 140,821 155,261 10.3% 4.1% 307,737 296,083 -3.8% 603,940 Other operating expenses 44,085 21,554 28,817 30,326 47,459 56.5% 7.7% 71,712 77,786 8.5% 122,084 Net operating revenues 161,099 161,532 174,218 155,252 172,628 11.2% 7.2% 310,238 327,880 5.7% 645,990 SG&A 119,424 124,496 121,302 119,074 122,785 3.1% 2.8% 233,448 241,859 3.6% 479,247 Operating income 41,674 37,036 52,916 36,177 49,842 37.8% 19.6% 76,790 86,020 12.0% 166,742 Non-operating income 31,212 26,024 -1,888 7,538 4,349 -42.3% -86.1% 33,837 11,887 -64.9% 57,973 Ordinary income/loss 72,887 63,061 51,027 43,716 54,192 24.0% -25.6% 110,627 97,908 -11.5% 224,716 Extraordinary income/loss -3,794 1,852 -4,027 1,078 21,438 19X - -3,514 22,517 - -5,689 Income before income taxes 69,092 64,913 47,000 44,794 75,631 68.8% 9.5% 107,113 120,426 12.4% 219,026 Total income taxes 13,234 15,229 14,076 10,754 23,205 115.8% 75.3% 24,626 33,959 37.9% 53,932 53,791 46,628 29,954 31,237 47,726 52.8% -11.3% 77,785 78,964 1.5% 154,368 FY2024 Profit (loss) attributable to owners of parent (¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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12 Breakdown of SG&A ◼ SG&A increased (+3.1%). ◼ Trading related expenses increased due to higher payment fee (+5.5%). ◼ Personnel expenses increased due to the impact of wage hikes and performance-linked bonuses (+4.2%). Consolidated FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H 119,424 124,496 121,302 119,074 122,785 3.1% 2.8% 233,448 241,859 3.6% 479,247 Trading related expenses 22,579 23,069 24,115 23,496 24,798 5.5% 9.8% 44,571 48,295 8.4% 91,756 Personnel expenses 61,629 65,280 60,952 58,163 60,606 4.2% -1.7% 118,768 118,770 0.0% 245,001 Real estate expenses 10,916 10,791 11,379 11,110 11,320 1.9% 3.7% 21,637 22,431 3.7% 43,808 Office cost 6,857 7,400 7,292 8,316 8,101 -2.6% 18.1% 13,756 16,417 19.3% 28,449 Depreciation 8,810 8,534 8,315 8,271 8,292 0.3% -5.9% 17,463 16,564 -5.1% 34,313 Taxes and dues 3,413 3,706 3,347 3,930 4,232 7.7% 24.0% 7,203 8,163 13.3% 14,257 Other 5,217 5,713 5,899 5,783 5,433 -6.1% 4.1% 10,047 11,217 11.6% 21,661 FY2024 SG&A (¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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13 Cost Structure Consolidated 2Q 3Q 4Q 1Q-4Q 1Q 2Q 3Q 4Q 1Q-4Q 1Q 2Q Total SG&A 106.4 109.8 117.5 437.2 114.0 119.4 124.4 121.3 479.2 119.0 122.7 41.4 44.0 50.3 174.6 45.2 50.1 54.9 52.1 202.5 47.4 50.0 Trading related expenses 20.2 20.4 21.2 80.6 21.9 22.5 23.0 24.1 91.7 23.4 24.7 Advertising and promotion expenses 2.8 2.5 2.4 9.7 2.2 2.5 2.4 2.6 9.8 2.0 2.2 15.2 16.9 22.2 68.5 16.5 20.5 24.2 20.2 81.6 16.1 17.8 Overtime, part-time 1.6 1.8 1.7 6.8 1.8 1.8 1.9 1.8 7.5 1.9 2.0 65.0 65.8 67.1 262.5 68.7 69.2 69.5 69.1 276.7 71.6 72.6 Personnel expenses 36.7 36.9 36.9 146.7 38.5 39.1 38.9 38.7 155.4 39.9 40.6 Real estate expenses 9.9 10.0 10.6 40.2 10.7 10.9 10.7 11.3 43.8 11.1 11.3 Depreciation 8.7 8.8 8.7 35.1 8.6 8.8 8.5 8.3 34.3 8.2 8.2 Office expenses 6.2 6.5 6.5 25.6 6.6 6.5 7.1 6.9 27.3 8.0 7.7 Taxes and dues 2.9 2.9 3.7 12.8 3.7 3.4 3.7 3.3 14.2 3.9 4.2 FY2025 (¥ Billions) FY2023 FY2024 Variable costs Bonus and others Fixed costs
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14 Ordinary Income of Overseas Operations Ordinary Income ◼ In Europe, profitability of the M&A business improved. ◼ Asia/Oceania saw decreased income due to lower equity method income. ◼ In the Americas, M&A business contributed to higher income. Consolidated 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2025(¥ Billions) FY2023 FY2024 -5 0 5 10 Europe Asia / Oceania Americas Overseas Operations Total FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H Overseas Operations Total 4,617 7,969 5,944 3,813 7,619 99.8% 65.0% 6,884 11,432 66.1% 20,798 Europe -464 137 237 -1,958 324 - - -2,856 -1,633 - -2,481 Asia / Oceania 1,677 2,390 2,518 2,448 1,501 -38.7% -10.5% 3,648 3,949 8.3% 8,556 Americas 3,404 5,441 3,189 3,323 5,793 74.3% 70.2% 6,092 9,116 49.6% 14,722 FY2024(¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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15 WM Division ◼ As total asset consulting has progressed, product sales and solution offerings tailored to individual customers’ needs have expanded. ◼ Equity revenues and distribution commission for investment trust increased, supported by a favorable equity market. ◼ Agency fee for investment trust and wrap-related revenues increased, with asset-based revenues expanding to a record high of ¥29.9 bn. ◼ The fixed cost coverage ratio based on asset-based revenue rose to 109.8%, while the total cost coverage ratio increased to 72.7% * Quarterly trend in asset-based revenues (See p.28) ◼ Daiwa Next Bank achieved higher revenue and income as yen deposit balances expanded. *1 For Daiwa Next Bank, net interest income, etc. + net fees and commissions (-) Net interest income, etc. = Net interest income/expenses plus foreign exchange gains/losses, gains/losses related to securities transactions including derivatives, etc.; Net fees and commissions = fees paid to Daiwa Securities and Daiwa Connect Securities as banking agents, etc. Net Operating Revenues and Ordinary Income Net operating revenues 74,689 18.7% 137,595 11.6% Ordinary income 29,565 49.8% 49,300 35.3% (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 0 20 40 60 80Equity Fixed income Distribution commission for investment trust Agency fee for investment trust Wrap-related revenues Daiwa Next Bank Other Ordinary income 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Equity 16.9 16.1 21.6 16.6 15.0 18.4 19.7 14.6 19.7 Fixed income 5.5 5.7 5.9 6.5 5.6 5.2 4.8 5.9 5.8 Distribution commission for investment trust 3.6 4.0 6.3 6.4 4.7 6.6 6.4 4.6 5.9 Agency fee for investment trust 6.4 6.3 7.0 7.5 7.6 8.1 8.1 7.8 9.0 Wrap-related revenues 10.6 11.0 11.7 12.9 13.7 14.1 14.1 14.2 15.3 Daiwa Next Bank *1 4.2 4.2 4.5 4.9 6.4 5.6 5.8 6.5 7.9 銀行代理店報酬（大和証券）、Fintertech（相殺消去後）、コネクトの内部取引調整を含む Other 6.3 6.6 6.9 7.6 7.4 7.9 7.1 8.9 10.7 Net operating revenues 53.8 54.3 64.1 62.6 60.6 66.0 66.4 62.9 74.6 Ordinary income 13.1 14.0 22.4 20.4 15.9 21.0 23.1 19.7 29.5 FY2025 (¥ Billions) FY2023 FY2024
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【Wrap Account Service】 ◼ Contract amount was ¥258.9 bn, and net inflow expanded to ¥146.6 bn. ◼ Contract AUM was ¥5.30 tn*, reaching a record high. 【Stock Investment Trusts】 ◼ Sales amount was ¥481.8 bn, and net increase amount was ¥130.8 bn. ◼ Through total asset consulting, captured the needs of customers who prefer diversified investments and robust portfolios, leading to sales of a wide range of investment trusts, mainly including the Invesco World Best Equity Open, Fidelity Growth Opportunity Fund and the Daiwa Blackstone Private Credit Fund. 16 WM Division Daiwa Securities *1 Total contract amount of fund wrap and SMA *2 Insurance include pension insurance, life insurance and business insurance *3 Solicitation of new bond issuance *4 Foreign bonds include yen-denominated foreign bonds *5 Stock investments include switching transactions between funds Sales and Distribution Amount by Product * Includes GM&IB Division Net Inflow Wrap Account Service and Stock Investment Trusts (¥ Billions) 0 500 1,000 1,500Equity SMA + Fund Wrap Insurance Japanese bonds Foreign bonds Stock investment trusts 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Equity 41.1 113.3 50.0 25.5 91.2 168.0 389.0 62.7 105.5 Wrap *1 237.3 199.3 217.9 261.1 239.5 237.0 195.7 194.9 258.9 Insurance *2 19.4 27.0 21.6 21.9 25.1 26.0 27.5 64.6 83.1 Japanese bonds *3 122.2 173.4 187.3 204.7 128.3 122.0 54.0 263.4 97.5 Foreign bonds *4 177.9 180.3 175.1 218.1 238.5 204.4 185.0 160.9 200.9 312.1 365.7 470.0 460.6 390.1 490.1 458.0 357.8 481.8 Asset-based fee plan for investment trust 69.7 78.5 94.2 88.5 79.1 92.5 81.2 62.8 94.7 (¥ Billions) Stock investment trusts *5 FY2023 FY2024 FY2025 18.4 40.6 106.7 101.1 94.2 108.4 174.6 88.9 130.8 162.1 104.8 124.9 173.2 156.3 125.7 94.2 100.3 146.6 0 50 100 150 200 250 300 350 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 FY2025 Wrap account service net inflow Stock investment trusts (excluding wrap account service) net increase
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17 WM Division Daiwa Next Bank Daiwa Next Bank Deposit Balance & Number of Accounts (¥ Billions) ※ All figures are as at the end of each quarter ※ Net interest income, etc. = Net interest income/expenses plus foreign exchange gains/losses, gains/losses related to securities transactions including derivatives, etc. ※ Net interest income, etc. are unaudited reference value. Net Interest Income, etc. / Ordinary Income (Thousands) Net interest income, etc. 11,142 15.3% 20,808 10.0% Ordinary income 5,702 30.9% 10,058 41.4% (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 0 500 1,000 1,500 2,000 0 1,000 2,000 3,000 4,000 5,000 Yen deposits Foreign currency deposits Number of accounts (thousands) 1Q 2Q 2,224 2,163 2,007 2,296 2,158 2,143 2,322 2,171 2,005 1,905 2,194 2,137 2,181 2,457 35 29 27 37 12 11 12 4,430 4,197 3,940 4,528 4,309 4,336 4,792 Foreign currency deposits 606 569 499 597 688 697 734 1,505 1,569 1,662 1,786 1,894 1,902 1,913 Time deposits (¥ Billions) Ordinary deposits Negotiable certificate of deposits / Other Deposit balance Number of accounts (thousands) FY2020 FY2021 FY2025 FY2022 FY2023 FY2024 0 10 20 30 40 50 Net interest income, etc. (annually) Net interest income, etc. (quarterly) Ordinary income (annually) Ordinary income (quarterly) 1Q 2Q Net interest income, etc. 15.7 17.4 24.1 32.4 37.2 9.6 11.1 Ordinary income 3.6 4.2 6.0 10.5 14.1 4.3 5.7 (¥ Billions) FY2020 FY2021 FY2022 FY2025 FY2024FY2023 ◼ Yen deposits grew by ¥419.9 bn, pushing the balance above ¥4 tn, driven by measures including an increase in the one-year time deposit rate for individuals. ◼ Foreign currency deposit saw a net increase primarily in U.S. dollars, and the balance exceeded ¥700 bn.
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18 AM Division Securities AM 【Securities AM】 ◼ Daiwa Asset Management secured a net inflow of ¥158.6 bn in publicly offered stock investment trusts (excluding ETFs). ◼ Increase in both net inflows and average assets under management, driven by rising stock prices, contributed to increased revenue and income. Daiwa Asset Management Publicly Offered Securities Investment Trusts AUM ※ All figures are as at the end of each quarter (¥ Billions) Ordinary Income (annually) Net operating revenues 17,158 12.9% 32,350 16.1% Ordinary income 8,493 13.0% 16,011 16.3% (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Stock investment trusts Bond investment trusts 1Q 2Q 19,418 20,261 20,225 27,481 27,378 29,499 32,085 7,543 8,268 8,038 10,418 11,425 12,190 13,150 (Net inflow) (50) (347) (516) (663) (1,242) (135) (158) 11,875 11,993 12,186 17,063 15,952 17,309 18,935 (Net inflow) (1,001) (275) (-80) (187) (-122) (-132) (104) 1,561 1,434 1,365 1,544 1,359 1,377 1,488 20,980 21,696 21,590 29,026 28,737 30,877 33,574 13.9% 13.3% 13.0% 12.8% 12.2% 12.1% 12.1% FY2025 FY2020 FY2021 FY2022 FY2023 Stock investment trusts excl. ETF ETF Bond investment trusts Total Publicly Offered Securities Investment Trusts Share FY2024(¥ Billions) 16.0 21.9 18.0 20.9 27.8 16.0 0 5 10 15 20 25 30 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1H
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19 AM Division Real Estate AM 【Real Estate AM】 ◼ AUM reached ¥1.7 tn, driven by the expansion of Daiwa Real Estate Asset Management’s private fund business. ◼ While equity method income from Samty Holdings increased, ordinary income declined due to the absence of the gain on property sales by Daiwa Securities Realty recorded in the previous quarter. Real Estate Asset Management Business AUM of Two Companies* * Daiwa Real Estate Asset Management, Samty Residential Investment Corp. ※ All figures are as at the end of each quarter Ordinary Income (annually) *1 Includes Daiwa Real Estate Asset Management, Daiwa Office Investment, Samty Residential Investment, and Daiwa Securities Realty. *2 Equity earnings of affiliates is included in non-operating revenues. ※ AUM-linked: Stock revenues such as rental income from owned real estate and asset management fees linked to AUM and rental income. Other: Equity method investment income from Samty Holdings and gains on sales associated with property replacements. *3 Japan Rental Housing Investment Inc. merged with Nippon Healthcare Investment Corp. through absorption-type merger and changed its trade name to Daiwa Securities Living Investment Corp. on April 1, 2020. (¥ Billions) Net operating revenues *1 8,039 -16.8% 17,704 8.9% Ordinary income *2 5,905 -14.9% 12,840 -1.1% (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 1Q 2Q Daiwa Office Investment Corp. 461 466 462 468 470 468 468 Daiwa Residential Private Investment Corp. 146 146 164 173 224 236 238 Daiwa Securities Living Investment Corp.*3 323 343 363 397 399 395 399 Daiwa Hotel Private Investment Corp. 54 54 54 54 58 58 58 Daiwa Securities Logistics Private Investment Corp. 33 35 51 58 58 58 58 Other 75 85 110 142 212 298 335 Total 1,094 1,131 1,206 1,295 1,424 1,516 1,558 Samty Residential Investment Corp. (Sub sponsor) 118 147 162 163 171 171 171 1,212 1,279 1,369 1,459 1,596 1,687 1,730 FY2025FY2024 Total (Including sub sponsor) (¥ Billions) FY2020 FY2021 FY2022 FY2023 16.7 22.9 26.3 27.0 29.0 12.8 0 10 20 30 40 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1H Other AUM-linked 0 500 1,000 1,500 2,000 Daiwa Office Investment Corp. Daiwa Residential Private Investment Corp. Daiwa Securities Living Investment Corp. Daiwa Hotel Private Investment Corp. Daiwa Securities Logistics Private Investment Corp. Other Samty Residential Investment Corp.
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20 AM Division Alternative AM 【Alternative AM】 ◼ Capital gains were recorded, primarily due to the exits from certain private equity investments. ◼ Recorded provisions and impairment losses due to the revaluation of certain investments in renewable energy. Principal Investment Balance ※ All figures are as at the end of each quarter * Energy & Infrastructure investment is the investment balance of Daiwa Energy & Infrastructure. Ordinary Income (annually) (¥ Billions) Net operating revenues -201 - 3,154 -64.1% Ordinary income -2,326 - -2,007 - (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 0 100 200 300 400 Energy and infrastructure* Private equity and PIPEs Monetary claims Real estate investment 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Daiwa PI Partners Private equity and PIPEs 40 50 46 45 45 45 42 50 32 Monetary claims 73 65 66 61 64 65 79 81 84 Real estate investment 34 32 19 19 19 20 21 21 16 Daiwa Energy & Infrastructure 170 185 173 172 169 166 140 161 154 318 334 305 298 299 298 284 315 288 FY2025(¥ Billions) Total FY2023 FY2024 0.1 6.4 12.1 18.4 20.5 -2.0 -5 0 5 10 15 20 25 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1H
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21 GM&IB Division GM Net Operating Revenues and Ordinary Income 【Equity】 ◼ Flows from overseas investors into Japanese equities increased, supported by strong market performance since late July, while individual investor flows also recovered. ◼ Foreign equities saw continued strength in AI-related share prices, with individual investors’ activities remaining robust. ◼ Proprietary trading performed well, reflecting the increase in customer flows. 【FICC] ◼ Customer activity remained at a high level among both WM customers and institutional investors, driven by rising domestic interest rates. ◼ Customer flows in credit products were solid both domestically and internationally. Derivatives continued to maintain strong activity levels. ◼ Overseas, customer flows increased as interest rates declined. Net operating revenues 39,281 20.7% 71,835 -1.2% Ordinary income 8,414 218.8% 11,054 -18.8% (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 0 10 20 30 40 50 Equity FICC Others Ordinary income 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Equity 14.2 13.5 21.1 14.6 16.9 17.1 17.4 15.6 21.5 FICC 21.6 19.3 18.8 20.5 18.2 22.1 17.7 15.9 16.9 Others 1.0 0.8 1.9 1.1 1.2 1.0 0.9 0.9 0.7 Net operating revenues 36.9 33.7 41.8 36.2 36.3 40.3 36.0 32.5 39.2 Ordinary income 9.1 5.0 13.6 6.9 6.6 9.0 6.3 2.6 8.4 FY2025(¥ Billions) FY2023 FY2024
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22 GM&IB Division GIB Net Operating Revenues and Ordinary Income 【Equity】 <Offering size> KOEI TECMO HOLDINGS CO., LTD. KJRM Realty Token Shiodome City Center MARUI GROUP CO., LTD. Kenedix Realty Token W Osaka Life Drink Company, Inc. Movin Strategic Career Co., Ltd. 【Debt】 <Offering size> SoftBank Group Corp.（35 years） Mitsui Sumitomo Insurance Co., Ltd.（3/5/7/10 years） Rakuten Group, Inc.（3*/5* years ） Development Bank of Japan Inc.（3/5/10/20 years） ITOCHU Corporation (Orange bond) (3 years) Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Trust Holdings, Inc.（3/5/11 years） Hokkaido Electric Power Co., Inc.（5** years） 【M&A】 Sale of Space Value Holdings Co., Ltd. by Polaris Capital Group Co., Ltd. Tender offer and business alliance agreement of SBI Sumishin Net Bank, Ltd. by NTT DOCOMO, INC. Tender offer of TechnoPro Holdings, Inc. by Blackstone Inc. Sale of stake in EmberPoint, Inc. by Bain Capital Transfer of shares to Sugi Holdings Co., Ltd. by The founding family of Seki Yakuhin Co., Ltd. Sale of shares in Isto Biologics (US) to Keensight Capital (US) by Thompson Street Capital Partners (US) Sale of Zimmer & Hälbig (Germany) to VINCI Energies (France) by VR Equitypartner (Germany) Acquisition of Aquavista Watersides & Marinas (UK) by Antin Infrastructure Partners (France) Acquisition of AccessIT Group (US) by Nautic Partners (US) ¥200.0 bn ¥200.0 bn ¥160.0 bn ¥135.0 bn ¥15.2 bn USD1.8 bn USD0.5 bn Subordinated Bond Straight Bond Straight Bond◆ FILP Agency Bond Straight Bond◆ Benchmark Benchmark◆ PO STO PO STO PO IPO ¥45.7 bn ¥31.4 bn ¥29.5 bn ¥29.2 bn ¥26.7 bn ¥4.8 bn * Sustainability Bonds ** Green Bonds ◆ Sustainability-related *1 In addition to “M&A / others” revenues, includes revenues from equity-method affiliates such as Green Giraffe (50% ownership), a renewable energy M&A house in Europe ◼ Equity underwriting increased revenues by securing multiple lead-managed deals. ◼ Domestic M&A-related revenue reached a record high, while overseas M&A turned profitable. Net operating revenues 21,464 24.3% 38,737 14.1% Ordinary income 6,086 573.8% 6,989 - (¥ Millions) FY2025 2Q % Change vs 1Q/FY25 FY2025 1H % Change vs 1H/FY24 -5 0 5 10 15 20 25 30 Equity underwriting Debt underwriting M&A / others Ordinary income 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Equity underwriting 4.1 4.5 3.7 1.9 3.9 6.1 7.1 2.3 4.0 Debt underwriting 2.8 2.1 2.8 3.8 3.4 3.2 2.2 3.1 3.2 M&A / others 11.0 11.4 13.6 9.0 11.7 15.9 16.3 11.7 14.1 Net operating revenues 18.0 18.0 20.1 14.8 19.0 25.3 25.8 17.2 21.4 Ordinary income 3.2 1.0 -0.6 -2.0 1.1 5.5 6.9 0.9 6.0 Group M&A related revenues *1 11.7 13.2 15.6 10.4 13.7 16.8 17.8 12.5 15.1 (¥ Billions) FY2023 FY2024 FY2025
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Reference
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24 Breakdown of Commission Consolidated FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H Total commission 98,355 109,796 114,899 100,398 118,300 17.8% 20.3% 191,793 218,698 14.0% 416,489 21,195 21,638 23,043 21,153 26,968 27.5% 27.2% 44,363 48,122 8.5% 89,045 10,970 13,271 15,245 8,901 10,831 21.7% -1.3% 19,413 19,733 1.6% 47,930 4,963 6,710 6,670 4,761 6,275 31.8% 26.4% 11,519 11,037 -4.2% 24,900 61,226 68,175 69,941 65,581 74,224 13.2% 21.2% 116,496 139,806 20.0% 254,613 Agency fee and others 6,143 6,616 6,667 6,344 7,545 18.9% 22.8% 12,197 13,889 13.9% 25,481 Investment advisory and account management fees 13,354 13,648 13,766 13,895 15,003 8.0% 12.3% 25,783 28,898 12.1% 53,198 Insurance sales commission 1,144 1,173 1,257 3,243 4,036 24.5% 252.8% 2,179 7,279 234.0% 4,610 M&A related commission 11,827 16,132 16,537 11,183 13,808 23.5% 16.8% 20,425 24,991 22.4% 53,095 Management fee 22,917 24,187 23,694 23,523 25,832 9.8% 12.7% 44,813 49,355 10.1% 92,694 Other 5,838 6,416 8,017 7,391 7,998 8.2% 37.0% 11,097 15,390 38.7% 25,532 FY2024 Brokerage commission Underwriting and secondary offering commissions Distribution commission Other commission (¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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25 Assets under Custody ※ Data of Daiwa Securities. ※ All figures are as at the end of each quarter. ※ ETFs are recorded in "Equity”. 0 20 40 60 80 100 120 Equity Japanese bonds Foreign bonds Stock investment trusts Bond investment trusts Foreign investment trusts Others 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Equity 55.6 56.1 62.2 61.3 60.2 62.7 60.2 63.2 68.5 Japanese bonds 12.1 12.5 12.6 13.1 13.4 13.7 13.5 13.6 14.2 Foreign bonds 4.5 4.5 4.5 4.8 4.6 4.8 4.7 4.5 4.5 Stock investment trusts 7.4 8.2 9.0 9.5 9.3 9.8 8.9 9.4 10.1 Bond investment trusts 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 Foreign investment trusts 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 Others 1.5 1.3 1.4 1.5 1.4 1.5 1.4 1.5 1.6 Total 82.3 83.9 91.0 91.5 90.3 93.9 90.2 93.8 100.6 Daiwa Next Bank deposit balance 4.4 4.5 4.5 4.4 4.2 4.3 4.3 4.3 4.7 (¥ Trillions) FY2023 FY2024 FY2025
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26 Number of Accounts and Equity Trading ※ Data of Daiwa Securities. *1 Includes Junior NISA until 3Q FY2023. 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3,104 3,106 3,120 3,132 3,171 3,183 3,209 3,210 3,235 Accounts holding equity (thousands) 1,474 1,467 1,465 1,467 1,488 1,493 1,507 1,501 1,494 3,616 3,641 3,667 3,688 3,708 3,733 3,756 3,770 3,776 46 43 48 44 39 44 38 44 42 683 695 683 692 698 700 701 702 701 Contract assets under management (¥ billions) 3,558 3,749 4,142 4,430 4,509 4,736 4,686 4,910 5,302 Number of customers (thousands) 168 174 179 187 193 199 203 208 213 Total number of contracts (thousands) 2,651 2,517 3,532 2,777 2,888 2,656 2,688 2,699 2,994 Online out of total (thousands) 2,275 2,181 2,992 2,399 2,547 2,281 2,332 2,387 2,581 Total trading value (¥ billions) 3,409 2,984 4,512 3,247 2,994 2,903 2,997 2,744 3,536 Online out of total (¥ billions) 2,309 2,087 3,107 2,376 2,305 2,051 2,118 2,066 2,595 Trading value (¥ billions) 226 242 399 375 267 430 306 474 573 Contracts and trading value for individual investors at Daiwa Securities (Japanese Equity) FY2023 FY2024 Foreign equity trading value (WM Division (Daiwa Securities)) NISA accounts (thousands) *1 Wrap account service (end of quarter) Accounts with balance (thousands) Online trading accounts (thousands) Newly opened accounts (thousands) FY2025
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27 Net Asset Inflow WM Division (Daiwa Securities) Net Asset Inflow (Individuals) WM Division (Daiwa Securities) Net Asset Inflow ※ Net Asset Inflow = net inflow of cash and securities, totaled on a quarterly basis. -200 -100 0 100 200 300 400 500 600 Corporation Individual -200 -100 0 100 200 300 400 500 600 Net inflow of cash Net inflow of securities 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Corporation 269.6 252.8 205.6 180.9 248.2 137.7 308.8 179.1 281.1 Individual 33.6 -138.6 62.2 228.4 172.7 71.8 224.4 83.1 180.2 Total 303.3 114.2 267.8 409.4 421.0 209.5 533.3 262.3 461.3 (¥ Billions) FY2023 FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net inflow of cash -14.0 42.2 -39.7 172.1 131.4 83.2 164.6 48.0 188.8 Net inflow of securities 47.7 -180.9 102.0 56.3 41.3 -11.3 59.8 35.1 -8.6 Total 33.6 -138.6 62.2 228.4 172.7 71.8 224.4 83.1 180.2 FY2025FY2024 (¥ Billions) FY2023
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28 Asset-Based Revenues Stock-Related AssetsComposition of Revenues ※ Stock investment trusts include portions from wrap account services. 0 2 4 6 8 10 12 AUC of stock investment trusts Contract AUM of Wrap Account Foreign currency deposits 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q AUC of stock investment trusts 7.4 8.2 9.0 9.5 9.3 9.8 8.9 9.4 10.1 Contract AUM of Wrap Account 3.5 3.7 4.1 4.4 4.5 4.7 4.6 4.9 5.3 Foreign currency deposits 0.5 0.5 0.5 0.6 0.5 0.6 0.6 0.6 0.7 (¥ Trillions) FY2025FY2023 FY2024 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 48.3 48.3 57.9 55.7 52.8 58.1 59.0 54.6 64.7 Asset-based revenues 22.8 23.2 24.9 27.2 27.8 28.6 27.9 27.5 29.9 Flow revenues 25.5 25.1 33.0 28.4 24.9 29.4 31.1 27.1 34.7 47.2% 48.0% 43.0% 48.9% 52.7% 49.3% 47.3% 50.4% 46.3% 91.9% 94.3% 102.1% 106.4% 104.6% 108.3% 108.0% 103.7% 109.8% 62.6% 63.8% 66.4% 71.4% 68.5% 70.3% 71.2% 70.1% 72.7% FY2025FY2023 FY2024 Total cost coverage ratio (¥ Billions) Net operating revenues in WM Division (domestic) Fixed cost coverage ratio Asset-based revenue ratio 0 10 20 30 40 50 60 70 Flow revenues Asset-based revenues
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29 League Table Source: Compiled by Daiwa Securities based on LSEG April 2025 – September 2025 Primary and secondary equity, IPO, Straight bonds, Agency bonds, Municipal bonds and Samurai bonds are based on settlement date. Joint lead manager allotment of Primary and secondary equity, IPO, Straight bonds, Municipal bonds and Agency bonds is based on underwritten amount. Joint bookrunner allotment of Samurai bonds is divided up evenly among the bookrunners. Mitsubishi UFJMS totals the deals involving both Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. Equity underwriting by Japanese companies in overseas markets and M&A deals involving Japanese companies include the portion handled by Morgan Stanley. Primary and secondary equity offerings IPO Straight bonds (excl. family bonds) Agency bonds Municipal bonds Samurai bonds (excl. family bonds) M&A (Number of deals) SMBC Nikko Nomura Daiwa SMBC Nikko Daiwa Nomura 21.5% 34.3% 21.7% 24.5% 23.1% 25.8% Mitsubishi UFJMS SMBC Nikko Mizuho Daiwa SMBC Nikko Mizuho（2nd） 19.4% 24.6% 21.1% 19.5% 19.1% 21.1% Mizuho Mizuho Nomura Nomura Nomura Mitsubishi UFJMS （2nd） 17.9% 18.6% 20.8% 18.6% 18.7% 21.1% Daiwa Daiwa SMBC Nikko Mitsubishi UFJMS Mizuho Daiwa 13.6% 14.3% 19.2% 15.3% 14.6% 16.8% Cantor Fitzgerald Mitsubishi UFJMS Mitsubishi UFJMS Mizuho Mitsubishi UFJMS SMBC Nikko 11.0% 3.4% 13.1% 15.1% 13.0% 15.2% 4th Daiwa 5th Plutus 3rd Mizuho FY2025 2Q League Table 1st Nomura 2nd SMFG
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30 Value at Risk ◼ Confidence level: 99% (one-side test) ◼ Holding period: 1day ◼ Adjusted for price correlation between products Range and Assumptions of VaR Consolidated 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q VaR (Quarter end) 1.29 0.97 1.05 1.14 1.13 1.30 1.41 1.09 1.13 High 1.63 1.54 1.47 1.40 1.51 1.75 1.48 1.58 1.32 Low 1.05 0.93 0.93 0.90 1.03 1.03 0.99 0.99 0.88 Average 1.27 1.22 1.21 1.15 1.23 1.29 1.22 1.28 1.10 By risk factors (Quarter end) Equity 0.40 0.17 0.33 0.20 0.24 0.18 0.45 0.63 0.46 Interest 1.19 0.84 0.98 0.89 0.81 0.83 0.80 0.82 0.70 Currency 0.40 0.25 0.25 0.36 0.38 0.58 0.18 0.22 0.28 Commodities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (Ref) Confidence level：95% (one-side test), Holding period：1 day VaR (Quarter end) 0.82 0.60 0.71 0.67 0.82 0.79 0.91 0.76 0.70 (¥ Billions) FY2024FY2023 FY2025
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31 Number of Group Employees ※ Number of employees as at the end of each quarter. ※ Total figures are the sum of consolidated group companies. ※ Figures include temporary staff. Consolidated 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 15,117 14,994 14,889 15,280 15,229 15,165 15,093 15,558 15,571 Overseas 1,991 1,981 1,954 1,910 1,973 1,952 1,949 1,876 1,892 Total FY2024FY2023 FY2025
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32 Balance Sheet (¥ Billions) Daiwa Securities Balance Sheet (September 30, 2025) ※ Figures in parentheses show changes from March 31, 2025. Daiwa Securities Current assets 18,035 (-737) Current liabilities 16,326 (-683) Trading products 6,189 (309) Trading products 5,606 (70) Trading securities and other 2,909 (-184) Trading securities and other 2,379 (-526) Derivatives transactions 3,280 (493) Derivatives transactions 3,227 (597) Margin transaction assets 157 (4) Margin transaction liabilities 43 (4) Loans on margin transactions 121 (-26) Loans payables secured by securities 7,805 (-783) 36 (31) Short-term loans payable 1,133 (-168) Loans secured by securities 8,767 (-948) Current portion of bonds 240 (5) Short-term guarantee deposits 422 (-53) Long-term liabilities 1,364 (-10) Short-term loans receivable 398 (-82) Bonds payable 412 (-55) Long-term loans payable 906 (45) Non-current assets 209 (5) Total liabilities 17,697 (-694) Property, plant and equipment 50 (0) Net assets 547 (-37) Intangible assets 91 (6) Shareholders' equity 545 (-37) Capital stock 100 － Total assets 18,244 (-732) Total liabilities and net assets 18,244 (-732) Cash collateral pledged for securities borrowing on margin transactions
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33 Financial Summary I Daiwa Securities FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H 112,227 121,075 123,875 118,567 134,068 13.1% 19.5% 225,908 252,635 11.8% 470,858 Commission received 64,624 73,139 74,849 67,451 79,588 18.0% 23.2% 129,113 147,040 13.9% 277,102 Brokerage commission 14,616 15,189 16,101 14,353 18,913 31.8% 29.4% 30,743 33,266 8.2% 62,034 Stock and others 14,140 14,791 15,704 13,870 18,538 33.7% 31.1% 29,872 32,408 8.5% 60,368 9,283 13,136 13,324 8,850 10,066 13.7% 8.4% 16,737 18,917 13.0% 43,198 Equity 4,484 8,334 11,086 3,109 3,714 19.4% -17.2% 6,738 6,823 1.3% 26,160 Bond and others 4,799 4,801 2,238 5,470 4,368 -20.1% -9.0% 9,998 9,838 -1.6% 17,038 Distribution commission 4,900 6,638 6,611 4,701 6,193 31.7% 26.4% 11,373 10,894 -4.2% 24,623 Investment trust 4,841 6,582 6,542 4,650 6,105 31.3% 26.1% 11,245 10,756 -4.3% 24,370 Other commissions 35,823 38,176 38,810 39,546 44,415 12.3% 24.0% 70,259 83,961 19.5% 147,245 Agency fee and others 10,039 10,610 10,541 10,138 11,609 14.5% 15.6% 19,937 21,747 9.1% 41,089 Investment advisory and account management fees 13,354 13,648 13,766 13,895 15,003 8.0% 12.3% 25,783 28,898 12.1% 53,198 Insurance sales commission 1,144 1,173 1,257 3,243 4,036 24.5% 252.8% 2,179 7,279 234.0% 4,610 M&A related commission 4,198 5,353 5,814 5,149 6,702 30.2% 59.7% 7,824 11,851 51.5% 18,992 Net trading income/loss 22,087 21,565 21,412 20,449 21,296 4.1% -3.6% 45,431 41,746 -8.1% 88,410 Financial revenues 25,515 26,369 27,613 30,666 33,183 8.2% 30.0% 51,362 63,849 24.3% 105,346 Financial expenses 23,105 23,827 26,255 29,802 30,279 1.6% 31.1% 46,917 60,081 28.1% 97,000 89,122 97,248 97,620 88,764 103,789 16.9% 16.5% 178,990 192,553 7.6% 373,858 FY2024 Operating revenues Underwriting and secondary offering commissions Net operating revenues (¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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34 Financial Summary II Daiwa Securities FY2024 FY2025 2Q 3Q 4Q 1Q 2Q 1H 1H 68,952 69,436 67,600 67,641 71,003 5.0% 3.0% 134,211 138,644 3.3% 271,248 Trading related expenses 10,713 11,066 10,897 11,106 11,695 5.3% 9.2% 21,532 22,802 5.9% 43,496 Personnel expenses 29,491 29,944 28,661 27,908 29,889 7.1% 1.3% 56,149 57,798 2.9% 114,755 Real estate expenses 5,673 5,384 6,081 5,300 5,610 5.9% -1.1% 11,029 10,910 -1.1% 22,495 Office cost 15,028 15,064 13,746 15,624 16,117 3.2% 7.2% 29,750 31,742 6.7% 58,560 Depreciation 5,729 5,545 5,384 5,104 5,076 -0.5% -11.4% 11,241 10,181 -9.4% 22,171 Taxes and dues 1,286 1,260 1,280 1,292 1,432 10.8% 11.4% 2,433 2,725 12.0% 4,975 Other 1,029 1,169 1,548 1,303 1,179 -9.5% 14.5% 2,075 2,483 19.6% 4,793 20,817 28,347 31,034 21,620 33,246 53.8% 59.7% 46,251 54,866 18.6% 105,633 12,796 19,402 25,573 14,946 22,407 49.9% 75.1% 30,148 37,353 23.9% 75,124 9.6% 14.1% 17.9% 10.8% 16.7% 10.9% 13.2% 13.0% 370.4% 371.5% 369.6% 325.5% 342.6% 370.4% 342.6% 369.6% FY2024 Capital adequacy ratio SG&A Ordinary income Net income ROE（ Annualized） (¥ Millions) FY2024 % Change vs 1Q/FY25 % Change vs 2Q/FY24 FY2025 % Change vs 1H/FY24
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Daiwa Securities Group Inc. Investor Relations E-mail: ir-section@daiwa.co.jp URL: https://www.daiwa-grp.jp/english/ir/ Contact