Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Code number: 8601 Stock Exchange Listings: Tokyo, Nagoya URL: https://www.daiwa-grp.jp/english/ Scheduled date to commence dividend payments: － Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts) (1) Consolidated operating results (Millions of yen, % of change from previous year) Operating revenue Net operating revenue Operating income Ordinary income FY 2025 1,075,613 4.8 % 522,527 10.8% 147,785 29.8% 167,468 (3.6)% FY 2024 1,026,437 13.4 % 471,771 10.7% 113,826 6.8% 173,689 47.4% FY 2025: 199,220 million yen , 31.8% ; FY 2024: 151,165 million yen , 8.0% Profit attributable to owners of parent Net income per share Diluted net income per share FY 2025 125,426 0.8% 90.05 Yen 88.80 Yen FY 2024 124,413 51.8% 88.37 Yen 86.80 Yen (2) Consolidated financial conditions (Millions of yen, except per share amounts and percentage) Total assets Total net assets Equity ratio Net assets per share As of Dec. 31,2025 38,595,380 1,989,781 4.4 % 1,235.69 Yen As of Mar. 31,2025 36,024,346 1,923,287 4.6 % 1,158.82 Yen As of Dec. 31,2025: 1,706,702 million yen ; As of Mar. 31, 2025: 1,639,738 million yen Dividends per share (yen) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total FY 2024 － 28.00 － 28.00 56.00 FY 2025 (actual) － 29.00 － FY 2025 (expected)* － 44.00 Representative: Akihiko Ogino, President and CEO For inquiry: Kana Nakamura, Executive Director, Corporate Planning Dept. Investor Relations Office (Phone +81-3-5555-1111) February 2, 2026 Financial Summary (Consolidated) For the nine months period ended December 31, 2025 <Under Japanese GAAP> (Figures less than one million yen are rounded down) 1. Consolidated financial results (April 1, 2025 to December 31, 2025) (Note) Comprehensive income: (Reference) Stockholders’ equity (Total net assets - Share acquisition rights - Non-controlling interests): 2. Cash dividends (Note) Modification from the most recently announced dividend forecast: None * Daiwa Securities Group Inc. (hereinafter the “Company”) will basically pay dividends semiannually (interim and year-end dividends) at a payout ratio of 50% or more based on consolidated financial performance. In addition to this, the Company has set a minimum dividend per share (full year) of 44 yen from the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027. For convenience, the minimum dividend for the full year is shown in the total column of FY 2025 (expected) in the above table. As indicated in 3. below, the Company does not forecast operating results and it does not present the actual amount of the full- year dividends for FY 2025 because those amounts are currently undetermined. Those amounts will be determined in line with the aforementioned policy, taking into consideration the consolidated operating results.
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(ⅰ) Changes in accounting policies due to the revision of accounting standards: None (ⅱ) Changes in accounting policies other than (ⅰ): None (ⅲ) Changes in accounting estimates: None (ⅳ) Restatements: None (ⅰ) Number of shares issued (including treasury shares): As of Dec. 31, 2025 : 1,569,378,772 ; As of Mar. 31, 2025 : 1,569,378,772 (ⅱ) Number of treasury shares: As of Dec. 31, 2025 : 188,250,043 ; As of Mar. 31, 2025 : 154,402,735 (ⅲ) Average number of shares issued and outstanding during the period: As of Dec. 31, 2025 : 1,392,885,917 ; As of Dec. 31, 2024 : 1,407,863,544 3. Earnings forecasts for the fiscal year ending March 31, 2026 (consolidated) Daiwa Securities Group’s (hereinafter the “Group”) principal business is securities-related business, and the performance of the Group is significantly influenced by the economic and market environment in which it operates. Therefore, the Company does not disclose the forecasts of consolidated operating results, considering the difficulty to forecast the performance. 4. Other notes (1) Significant changes in the scope of consolidation during the period: None Newly included companies: None Excluded companies: None (2) Application of accounting methods which are exceptional for quarterly consolidated financial statements: None (3) Changes in accounting policies, estimates, and restatements: (4) Number of shares issued (common stock) Implementation status of audit procedure: Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None Statement on the proper use of earnings forecasts and other information: The quarterly financial summary attached to the Review Report will be disclosed after the completion of the review by certified public accountants or an audit firm. The scheduled disclosure date is February 5, 2026.
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Financial Summary Daiwa Securities Group Inc. 1. Overview of operating results, etc. ·············································································································· 2 (1) Overview of operating results ················································································································· 2 (2) Overview of financial position ················································································································ 6 2. Quarterly consolidated financial statements and main notes·················································································· 7 (1) Quarterly consolidated balance sheets ········································································································ 7 (2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ····························· 10 (3) Notes to quarterly consolidated financial statements ······················································································· 13 (Basis for preparation of quarterly consolidated financial statements) ··································································· 13 (Segment information) ·························································································································· 14 (Significant changes in amounts of shareholders’ equity) ·················································································· 17 (Going concern assumption) ··················································································································· 17 (Notes to quarterly consolidated statements of cash flows) ················································································ 17 3. Supplementary information ······················································································································· 18 (1) Quarterly transition of consolidated statements of income ················································································ 18 (Accompanying materials) Contents (Note) Presentation materials (PDF version) of the financial results briefing are available at our website. URL: https://www.daiwa-grp.jp/english/ir/presentation/index.html - 1 -
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Financial Summary Daiwa Securities Group Inc. 1. Overview of operating results, etc. (1) Overview of operating results (i) Status of overall business For the nine months ended December 31, 2025, operating revenue increased by 4.8% year on year to 1,075.6 billion yen, and net operating revenue increased by 10.8% to 522.5 billion yen. Commission received increased by 15.1% to 347.2 billion yen. Brokerage commission increased by 17.7% to 77.7 billion yen due to an increase in stock trading. Commission for underwriting, secondary distribution and solicitation for selling and others for professional investors decreased by 5.8% to 30.7 billion yen due to a decrease in equity underwriting transactions, despite a large real estate security token underwriting transaction. Net trading income decreased by 12.2% to 73.9 billion yen mainly due to a decrease in bond revenue. Net financial income increased by 12.1% to 64.0 billion yen mainly due to a decrease in repurchase agreement expenses. Selling, general and administrative expenses increased by 4.7% to 374.7 billion yen. Trading related expenses increased by 9.7% to 74.2 billion yen mainly due to an increase in commission expenses, and personnel expenses increased by 1.3% to 186.5 billion yen mainly due to an increase in salaries, despite a decrease in bonuses. As a result of the above, ordinary income decreased by 3.6% to 167.4 billion yen. After adding extraordinary income to this figure and deducting extraordinary losses, income taxes and profit attributable to non-controlling interests, profit attributable to owners of parent increased by 0.8% year on year to 125.4 billion yen. - 2 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Net operating revenue Ordinary income (loss) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Year-on-year increase (decrease) Composi- tion ratio Nine months ended December 31, 2024 Nine months ended December 31, 2025 Year-on-year increase (decrease) Composi- tion ratio Wealth Management Division 189,385 214,695 13.4% 41.1% 57,484 78,873 37.2% 47.1% Asset Management Division 72,455 85,815 18.4% 16.4% 65,201 49,076 (24.7)% 29.3% Securities asset management 42,997 50,988 18.6% 9.8% 20,803 26,238 26.1% － Real estate asset management 23,476 27,830 18.5% 5.3% 21,865 23,235 6.3% － Alternative asset management 5,982 6,996 17.0% 1.3% 22,532 (397) － － Global Markets & Investment Banking Division 172,359 181,912 5.5% 34.8% 29,419 38,594 31.2% 23.0% Global Markets 113,012 117,125 3.6% 22.4% 22,681 23,022 1.5% 13.7% Global Investment Banking 59,346 64,787 9.2% 12.4% 4,619 12,420 168.8% 7.4% Others, adjustments, etc. 37,571 40,103 － 7.7% 21,583 922 － 0.6% Consolidated total 471,771 522,527 10.8% 100.0% 173,689 167,468 (3.6)% 100.0% (ii) Status by category described in segment information The status of net operating revenue and ordinary income analyzed by segment is as follows. (Note) The composition ratio of ordinary income (loss) displays a percentage of the ordinary income of each segment in the consolidated total ordinary income of segments recording ordinary income in the nine months ended December 31, 2025. - 3 -
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Financial Summary Daiwa Securities Group Inc. Wealth Management Division: The main sources of earnings of the Wealth Management Division are commissions on products and services related to asset management for individual investors and unlisted companies in Japan, and profit margin that Daiwa Next Bank obtained from the management of procured funds raised through acceptance of deposits, etc. Factors that may have a major impact on operating results include changes in domestic and overseas financial markets and economic conditions that affect investment trends, as well as the development and underwriting status of products to address customer needs, and the type of sales strategies employed. For the nine months ended December 31, 2025, sales of a wide range of products expanded due to intensifying market investment activities and the deepening of total asset consulting. Asset-based revenue increased to 89.8 billion yen, while the contract amounts and net inflows for wrap account services remained at high levels. Contract AUM reached a record high of 5,783.6 billion yen. The balance of deposits (including negotiable certificates of deposit) at Daiwa Next Bank as of December 31, 2025 increased by 15.0% from the end of the previous fiscal year to 4,954.5 billion yen. The number of bank accounts increased by 12.9% to 2.13 million. As a result, net operating revenue in the Wealth Management Division for the nine months ended December 31, 2025 increased by 13.4% year on year to 214.6 billion yen, and ordinary income increased by 37.2% to 78.8 billion yen. Asset Management Division: Asset Management Division is comprised of Securities asset management, Real estate asset management and Alternative asset management. The main sources of earnings of Securities asset management are the management fees for structuring and managing investment trusts from the Company’s consolidated subsidiary Daiwa Asset Management. In addition, profit and loss of Sumitomo Mitsui DS Asset Management Company, Limited and Global X Management Company LLC, both equity method affiliate, are recorded in ordinary income according to the Company’s ownership ratio. Factors that may have a major impact on operating results include the fluctuation in customer demand for investment trust and investment advisory services caused by the market conditions, the investment performance of the fund relative to market conditions and the appeal of the products themselves such as the development of products with themes that capture the interest of customers. Securities Asset Management had an increase in both revenue and profit. At Daiwa Asset Management, the balance of assets under management of publicly offered investment trusts increased by 27.3% from the end of the previous fiscal year to 36.5 trillion yen, with a net increase in funds and rise in the stock market contributing to the result. As a result, net operating revenue for the nine months ended December 31, 2025 increased by 18.6% year on year to 50.9 billion yen, and ordinary income increased by 26.1% to 26.2 billion yen. The main sources of earnings of Real estate asset management are real estate investment income from the Company’s consolidated subsidiaries Daiwa Real Estate Asset Management, Daiwa Securities Realty, Daiwa Office Investment Corporation and Samty Residential Investment Corporation. In addition, profit and loss related to real estate investment of each of the subsidiaries of the Company’s equity method affiliate Samty Holdings Co., Ltd., and Daiwa Securities Living Investment Corporation, which is similarly an equity method affiliate, are recorded in ordinary income according to the Company’s ownership ratio. Factors that may have a major impact on operating results include trends in the domestic real estate market and office demand. Real Estate Asset management had an increase in both revenue and profit. The total balance of assets under management of Daiwa Real Estate Asset Management and Samty Residential Investment Corporation increased by 8.6% from the end of the previous fiscal year to 1,733.5 billion yen due to new acquisitions of properties and other such factors. As a result, net operating revenue for the nine months ended December 31, 2025 increased by 18.5% year on year to 27.8 billion yen, and ordinary income increased by 6.3% to 23.2 billion yen. The main sources of earnings of Alternative asset management are gains on sales from IPO and M&A transactions and capital gains from investment partnerships of the Company’s consolidated subsidiaries Daiwa Corporate Investment, Daiwa PI Partners and Daiwa Energy & Infrastructure, and income gains including management fees and contingency fees received from funds based on contracts, dividends on stocks, and electricity sales income. Factors that may have a major impact on operating results include stock market and IPO market trends, changes in economic conditions that could affect values of invested companies, and liquidity of positions of held securities and investment assets. - 4 -
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Financial Summary Daiwa Securities Group Inc. Alternative Asset Management had a decrease in profit. Daiwa Corporate Investment secured earnings from the gains on sales of investees, while contributing to investment in domestic and overseas growth companies and listing support. In addition, Daiwa PI Partners invested in monetary claims, real estate loans and equity, and loans to corporations at home and abroad in addition to proceeding with the collection of existing projects. Daiwa Energy & Infrastructure recorded income and capital gains while executing energy and infrastructure related investment that contributes to the Sustainable Development Goals (SDGs), such as investing in storage battery businesses, but it recorded provisions and recognized impairment losses from revaluations of certain renewable energy-related investees. Consequently, ordinary loss for the nine months ended December 31, 2025 was 0.3 billion yen (ordinary income of 22.5 billion yen for the nine months ended December 31, 2024). As a result, net operating revenue in the Asset Management Division for the nine months ended December 31, 2025 increased by 18.4% year on year to 85.8 billion yen, and ordinary income decreased by 24.7% to 49.0 billion yen. Global Markets & Investment Banking Division: The Global Markets & Investment Banking Division is comprised of the Global Markets, which conducts sales and trading of securities targeted at institutional investors, etc. and Global Investment Banking, which conducts underwriting of securities issued by industrial corporations and financial corporations, etc. and M&A advisory services. Main sources of earnings of Global Markets are trading commissions from the buying and selling of marketable securities for institutional investors and trading income. Changing market trends with geopolitical risks and international economic conditions, etc. and the associated change in customer flows are factors that may have a major impact on operating results. Global Markets had an increase in both revenue and profit. Fixed income revenue decreased due to difficulty in managing positions amid widely fluctuating interest rates, while Equity revenue increased mainly due to an increase in customer flows on the back of a favorable market for equities. As a result, net operating revenue for the nine months ended December 31, 2025 increased by 3.6% year on year to 117.1 billion yen , and ordinary income increased by 1.5% to 23.0 billion yen. Main sources of earnings of Global Investment Banking are underwriting and secondary offering commissions from underwriting business and M&A commissions from M&A advisory services. In addition to the domestic and overseas economic conditions that affect client companies’ decisions on fundraising methods and M&A demand, whether or not the Company can capture corporate demand and secure projects is a factor that has a major impact on operating results. Global Investment Banking had an increase in both revenue and profit. Underwriting and secondary offering commissions decreased compared to the nine months ended December 31, 2024, when we acted as lead manager on many bond offerings. In the M&A business, many transactions were executed both in Japan and overseas, leading to increased revenue. As a result, net operating revenue for the nine months ended December 31, 2025 increased by 9.2% year on year to 64.7 billion yen, and ordinary income increased by 168.8% to 12.4 billion yen. As a result, net operating revenue in the Global Markets & Investment Banking Division for the nine months ended December 31, 2025 increased by 5.5% year on year to 181.9 billion yen, and ordinary income increased by 31.2% to 38.5 billion yen. Others: Other business includes the research and consulting business and system operations by Daiwa Institute of Research. Daiwa Institute of Research contributed to the earnings of the Group by steadily advancing the development of the Group’s systems as well as strengthening relationships with customers through high-value-added solution proposals, in addition to being involved in system development projects for large-scale customers. For the nine months ended December 31, 2025, net operating revenue related to other adjustment, etc. was 40.1 billion yen (37.5 billion yen for the nine months ended December 31, 2024), and ordinary income was 0.9 billion yen (21.5 billion yen for the nine months ended December 31, 2024) mainly due to a year-on-year increase in ordinary income of some Group companies in the “Others”. - 5 -
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Financial Summary Daiwa Securities Group Inc. (2) Overview of financial position <Assets> Total assets as of December 31, 2025 increased by 2,571.0 billion yen (7.1%) from the end of the previous fiscal year to 38,595.3 billion yen. The breakdown shows that current assets increased by 2,494.0 billion yen (7.3%) to 36,769.8 billion yen, including an increase in cash and deposits of 1,001.6 billion yen (26.7%) to 4,758.4 billion yen, an increase in securities of 467.4 billion yen (29.5%) to 2,054.3 billion yen, an increase in trading products of 3,030.9 billion yen (36.4%) to 11,358.4 billion yen, and a decrease in loans secured by securities of 1,601.7 billion yen (10.4%) to 13,775.8 billion yen. Non-current assets increased by 76.9 billion yen (4.4%) to 1,825.5 billion yen. <Liabilities and net assets> Total liabilities increased by 2,504.5 billion yen (7.3%) from the end of the previous fiscal year to 36,605.5 billion yen. The breakdown shows that current liabilities increased by 2,871.5 billion yen (9.4%) to 33,566.9 billion yen, including a decrease in trading products of 156.6 billion yen (2.1%) to 7,280.5 billion yen, a decrease in borrowings secured by securities of 171.5 billion yen (1.1%) to 15,273.9 billion yen, an increase in deposits for the banking business of 644.8 billion yen (15.0%) to 4,942.5 billion yen, and an increase in short-term borrowings of 558.1 billion yen (39.4%) to 1,973.4 billion yen. Non-current liabilities decreased by 367.0 billion yen (10.8%) to 3,032.3 billion yen, including a decrease in bonds payable of 176.2 billion yen (14.5%) to 1,042.2 billion yen, and a decrease in long-term borrowings of 210.1 billion yen (10.3%) to 1,826.4 billion yen. Total net assets increased by 66.4 billion yen (3.5%) to 1,989.7 billion yen. Total share capital and capital surplus was 514.1 billion yen. Retained earnings increased by 45.0 billion yen (4.3%) to 1,086.5 billion yen, mainly due to the recording of 125.4 billion yen in profit attributable to owners of parent as well as the payment of 79.8 billion yen in dividends. Deduction for treasury shares increased by 40.0 billion yen (35.4%) to 153.2 billion yen, valuation difference on available-for-sale securities increased by 30.3 billion yen (60.6%) to 80.5 billion yen, foreign currency translation adjustment increased by 22.9 billion yen (17.2%) to 156.5 billion yen, and non-controlling interests decreased by 0.1 billion yen (0.1%) to 277.0 billion yen. - 6 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Assets March 31, 2025 December 31, 2025 Current assets: Cash and deposits 3,756,732 4,758,424 Cash segregated as deposits 574,551 753,770 Notes and accounts receivable - trade, and contract assets 33,044 33,309 Securities 1,586,939 2,054,363 Trading products: 8,327,538 11,358,442 Trading securities and other 5,544,556 7,561,263 Derivatives 2,782,981 3,797,178 Trade date accrual 553,053 － Private equity and other investments 107,364 123,746 Allowance for investment loss (445) (434) Operating loans receivable 2,793,554 2,730,479 Work in process 759 1,657 Margin transaction assets: 160,052 189,061 Loans on margin transactions 155,847 140,949 Cash collateral pledged for securities borrowing on margin transactions 4,204 48,112 Loans secured by securities: 15,377,587 13,775,816 Cash collateral pledged for securities borrowed 11,469,141 10,647,118 Securities purchased under resale agreements 3,908,445 3,128,697 Advances paid 50,789 44,523 Short-term loans receivable 994 747 Accrued income 100,569 122,023 Other current assets 865,790 836,051 Allowance for doubtful accounts (13,131) (12,143) Total current assets 34,275,746 36,769,838 Non-current assets: Property, plant and equipment 942,230 967,656 Intangible assets: 137,398 149,574 Goodwill 15,622 15,716 Other 121,775 133,857 Investments and other assets: 668,972 708,311 Investment securities 618,456 658,271 Long-term loans receivable 7,532 7,851 Long-term guarantee deposits 15,915 15,961 Deferred tax assets 7,889 6,917 Other 22,366 22,790 Allowance for doubtful accounts (3,187) (3,481) Total non-current assets 1,748,600 1,825,541 Total assets 36,024,346 38,595,380 2. Quarterly consolidated financial statements and main notes (1) Quarterly consolidated balance sheets - 7 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Liabilities March 31, 2025 December 31, 2025 Current liabilities: Notes and accounts payable - trade 8,471 8,336 Trading products: 7,437,195 7,280,522 Trading securities and other 4,810,648 3,457,166 Derivatives 2,626,547 3,823,356 Trade date accrual － 1,578,919 Margin transaction liabilities: 39,891 40,987 Borrowings on margin transactions 2,466 3,711 Cash received for securities lending on margin transactions 37,425 37,276 Borrowings secured by securities: 15,445,468 15,273,918 Cash collateral received for securities lent 8,793,891 9,911,970 Securities sold under repurchase agreements 6,651,576 5,361,947 Deposits for the banking business 4,297,685 4,942,568 Deposits received 602,199 970,072 Guarantee deposits received 495,532 456,726 Short-term borrowings 1,415,334 1,973,444 Commercial papers 322,500 409,400 Current portion of bonds payable 399,531 432,663 Income taxes payable 28,724 24,304 Provision for bonuses 48,644 33,611 Other current liabilities 154,219 141,500 Total current liabilities 30,695,399 33,566,977 Non-current liabilities: Bonds payable 1,218,490 1,042,247 Long-term borrowings 2,036,629 1,826,469 Deferred tax liabilities 45,403 63,795 Retirement benefit liability 43,139 44,071 Provision for loss on litigation 413 386 Other non-current liabilities 55,309 55,365 Total non-current liabilities 3,399,386 3,032,335 Reserves under special laws: Reserve for financial instruments transaction liabilities 6,273 6,285 Total reserves under special laws 6,273 6,285 Total liabilities 34,101,059 36,605,598 - 8 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Net assets March 31, 2025 December 31, 2025 Shareholders’ equity: Share capital 247,397 247,397 Capital surplus 266,290 266,758 Retained earnings 1,041,490 1,086,540 Treasury shares (113,139) (153,213) Deposits for subscriptions of treasury shares 40 54 Total shareholders’ equity 1,442,079 1,447,536 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 50,173 80,559 Deferred gains or losses on hedges 13,837 22,162 Foreign currency translation adjustment 133,623 156,540 Remeasurements of defined benefit plans 24 (97) Total accumulated other comprehensive income 197,659 259,166 Share acquisition rights 6,344 6,033 Non-controlling interests 277,204 277,044 Total net assets 1,923,287 1,989,781 Total liabilities and net assets 36,024,346 38,595,380 - 9 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Nine Months Ended December 31, 2024 December 31, 2025 Operating revenue: Commission received: 301,590 347,277 Brokerage commission 66,002 77,700 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 32,685 30,781 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 18,230 18,778 Other commission received 184,671 220,017 Net trading income 84,239 73,935 Net gain on private equity and other investments 3,869 4,554 Financial revenue 518,469 512,907 Other operating revenue 118,267 136,936 Total operating revenue 1,026,437 1,075,613 Financial expenses 461,399 448,907 Other operating expenses 93,266 104,178 Net operating revenue 471,771 522,527 Selling, general and administrative expenses: Trading related expenses 67,641 74,221 Personnel expenses 184,048 186,521 Real estate expenses 32,429 34,324 Office expenses 21,156 25,239 Depreciation 25,997 25,210 Taxes and dues 10,909 12,222 Provision of allowance for doubtful accounts 45 127 Other 15,716 16,874 Total selling, general and administrative expenses 357,945 374,742 Operating income 113,826 147,785 Non-operating income: Dividend income 2,849 2,870 Share of profit of entities accounted for using the equity method 52,428 16,077 Foreign exchange gains 2,209 － Gain on investments in investment partnerships 2,048 5,122 Other 4,002 3,016 Total non-operating income 63,538 27,086 Non-operating expenses: Interest expenses 1,954 2,773 Foreign exchange losses － 1,555 Bond issuance costs 289 225 Other 1,431 2,849 Total non-operating expenses 3,675 7,403 Ordinary income 173,689 167,468 (2) Quarterly consolidated statements of income and consolidated statements of comprehensive income Quarterly consolidated statements of income - 10 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Nine Months Ended December 31, 2024 December 31, 2025 Extraordinary income: Gain on sale of non-current assets － 22,793 Gain on sale of investment securities 2,500 2,580 Gain on sale of shares of subsidiaries and associates 943 － Gain on reversal of share acquisition rights 248 134 Total extraordinary income 3,693 25,508 Extraordinary losses: Loss on sale and retirement of non-current assets 107 175 Impairment losses 2,362 44 Loss on sale of investment securities 4 5 Loss on valuation of investment securities 1,914 26 Loss on sale of shares of subsidiaries and associates － 1,410 Loss on valuation of shares of subsidiaries and associates － 23 Loss on change in equity 66 37 Provision of reserve for financial instruments transaction liabilities 8 11 Structural reform costs 890 － Provision of allowance for compensation losses － 1,053 Total extraordinary losses 5,355 2,789 Income before income taxes 172,026 190,186 Income taxes - current 36,311 48,465 Income taxes - deferred 3,544 4,457 Total income taxes 39,856 52,923 Profit 132,170 137,263 Profit attributable to non-controlling interests 7,756 11,836 Profit attributable to owners of parent 124,413 125,426 - 11 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Nine Months Ended December 31, 2024 December 31, 2025 Profit 132,170 137,263 Other comprehensive income: Valuation difference on available-for-sale securities (5,936) 25,935 Deferred gains or losses on hedges 5,694 9,505 Foreign currency translation adjustment 18,939 29,976 Share of other comprehensive income of entities accounted for using the equity method 296 (3,460) Total other comprehensive income 18,995 61,956 Comprehensive income 151,165 199,220 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 143,050 186,933 Comprehensive income attributable to non-controlling interests 8,115 12,286 Quarterly consolidated statements of comprehensive income - 12 -
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Financial Summary Daiwa Securities Group Inc. (3) Notes to quarterly consolidated financial statements (Basis for preparation of quarterly consolidated financial statements) The Company’s quarterly consolidated financial statements are prepared in accordance with Article 4, paragraph 1 of the standard for preparation of the quarterly financial statements established by the Tokyo Stock Exchange, Inc. and Nagoya Stock Exchange, Inc. and accounting principles for quarterly financial statements generally accepted in Japan (provided, however, the company applies the practice of omitting the descriptions provided for in Article 4, paragraph 2 of the aforementioned standard for preparation of the quarterly financial statements). - 13 -
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Financial Summary Daiwa Securities Group Inc. (Millions of yen) Reportable segments Others (Note1) TotalWealth Management Division Asset Management Division Global Markets & Investment Banking Division Total Revenue from contracts with customers 122,812 129,678 104,357 356,849 28,803 385,653 Commission received 121,304 75,311 104,357 300,973 616 301,590 Other operating revenue (external customers) 1,508 54,366 － 55,875 28,187 84,063 Net trading income and other 27,272 4,856 66,582 98,711 447 99,158 Lease revenue based on rental contracts － 29,561 － 29,561 4,527 34,088 Others (Note2) 27,593 (75,224) (92) (47,723) (23,190) (70,913) Net operating revenue Net operating revenue from external customers 177,678 88,872 170,847 437,399 10,588 447,987 Intersegment net operating revenue and transfers 11,707 (16,417) 1,511 (3,198) 17,465 14,266 Total 189,385 72,455 172,359 434,200 28,053 462,254 Segment income (Ordinary income) 57,484 65,201 29,419 152,105 1,287 153,392 (Millions of yen) Ordinary income Amount Reportable segments total 152,105 Income from “Others” 1,287 Elimination between segments 5 Adjustments for unrealized gains or losses (240) Other adjustments 20,531 Ordinary income on the quarterly consolidated statements of income 173,689 (Segment information) Segment information Nine months ended December 31, 2024 1 Information about net operating revenue and ordinary income (loss) by reportable segment, and information on disaggregation of revenue (Notes) 1 “Others” are the business segments which are not included in the reportable segments, and include consolidation and management of subsidiaries, information service, back-office service, and real-estate rental, etc. 2 “Others” of Wealth Management Division, Asset Management Division, and Others include “Commission fees” which constitute part of “Net operating revenue.” 3 “Net operating revenue” mainly consists of “Operating revenue,” “Financial expenses,” “Other operating expenses,” and “Commission fees (Selling, general and administrative expenses).” 2 Difference between total amount of ordinary income (loss) of the reportable segments and the amount reported in the quarterly consolidated statements of income, and the major components thereof - 14 -
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Financial Summary Daiwa Securities Group Inc. 3 Information on impairment losses on non-current assets, goodwill, etc. by reportable segment (Significant impairment losses on non-current assets) We recorded impairment losses on non-current assets of 529 million yen in the Asset Management Division, 142 million yen in the Global Markets & Investment Banking Division, and 1,690 million yen in Others. (Significant gain on bargain purchase) We included the amount of negative goodwill associated with the acquisition of shares in Aozora Bank, Ltd. and the application of the equity method in share of profit of entities accounted for using the equity method. - 15 -
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Financial Summary Daiwa Securities Group Inc. (Millions of yen) Reportable segments Others (Note1) TotalWealth Management Division Asset Management Division Global Markets & Investment Banking Division Total Revenue from contracts with customers 151,518 150,867 115,698 418,084 28,573 446,658 Commission received 143,450 87,219 115,698 346,369 908 347,277 Other operating revenue (external customers) 8,068 63,647 － 71,715 27,664 99,380 Net trading income and other 27,327 5,382 64,980 97,690 35 97,725 Lease revenue based on rental contracts － 31,531 － 31,531 4,457 35,989 Others (Note2) 23,433 (85,545) (15) (62,127) (22,625) (84,753) Net operating revenue Net operating revenue from external customers 202,279 102,236 180,663 485,179 10,440 495,619 Intersegment net operating revenue and transfers 12,415 (16,420) 1,248 (2,755) 17,396 14,640 Total 214,695 85,815 181,912 482,423 27,836 510,260 Segment income (loss) (Ordinary income (loss)) 78,873 49,076 38,594 166,545 (473) 166,071 (Millions of yen) Ordinary income Amount Reportable segments total 166,545 Loss from “Others” (473) Elimination between segments 2 Adjustments for unrealized gains or losses (1,436) Other adjustments 2,831 Ordinary income on the quarterly consolidated statements of income 167,468 Nine months ended December 31, 2025 1 Information about net operating revenue and ordinary income (loss) by reportable segment, and information on disaggregation of revenue (Notes) 1 “Others” are the business segments which are not included in the reportable segments, and include consolidation and management of subsidiaries, information service, back-office service, and real-estate rental, etc. 2 “Others” of Wealth Management Division, Asset Management Division, and Others include “Commission fees” which constitute part of “Net operating revenue.” 3 “Net operating revenue” mainly consists of “Operating revenue,” “Financial expenses,” “Other operating expenses,” and “Commission fees (Selling, general and administrative expenses).” 2 Difference between total amount of ordinary income (loss) of the reportable segments and the amount reported in the quarterly consolidated statements of income, and the major components thereof 3 Information on impairment losses on non-current assets, goodwill, etc. by reportable segment (Significant impairment losses on non-current assets) We recorded impairment losses on non-current assets of 44 million yen in Others. - 16 -
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Financial Summary Daiwa Securities Group Inc. (Significant changes in amounts of shareholders’ equity) Not applicable. (Going concern assumption) Not applicable. Millions of yen Nine months ended December 31, 2024 Nine months ended December 31, 2025 Depreciation 33,467 32,826 Amortization of goodwill 1,100 1,129 (Notes to quarterly consolidated statements of cash flows) Quarterly consolidated statements of cash flows for the nine months ended December 31, 2025 are not prepared. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the nine months ended December 31, 2025 are as follows. - 17 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Operating revenue: Commission received: 109,796 114,899 100,398 118,300 128,579 Brokerage commission 21,638 23,043 21,153 26,968 29,578 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 13,271 15,245 8,901 10,831 11,047 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 6,710 6,670 4,761 6,275 7,741 Other commission received 68,175 69,941 65,581 74,224 80,211 Net trading income 28,021 23,133 22,310 23,375 28,249 Net gain on private equity and other investments (195) 8,490 1,797 (1,164) 3,921 Financial revenue 171,885 163,482 160,616 175,175 177,115 Other operating revenue 27,240 35,571 41,277 59,662 35,996 Total operating revenue 336,748 345,577 326,400 375,349 373,862 Financial expenses 153,661 142,541 140,821 155,261 152,824 Other operating expenses 21,554 28,817 30,326 47,459 26,392 Net operating revenue 161,532 174,218 155,252 172,628 194,646 Selling, general and administrative expenses: Trading related expenses 23,069 24,115 23,496 24,798 25,926 Personnel expenses 65,280 60,952 58,163 60,606 67,751 Real estate expenses 10,791 11,379 11,110 11,320 11,893 Office expenses 7,400 7,292 8,316 8,101 8,822 Depreciation 8,534 8,315 8,271 8,292 8,645 Taxes and dues 3,706 3,347 3,930 4,232 4,058 Provision of allowance for doubtful accounts 29 (45) 109 30 (11) Other 5,684 5,944 5,674 5,402 5,797 Total selling, general and administrative expenses 124,496 121,302 119,074 122,785 132,882 Operating income 37,036 52,916 36,177 49,842 61,764 Non-operating income 26,645 (521) 10,710 6,846 9,528 Non-operating expenses 620 1,366 3,172 2,497 1,733 Ordinary income 63,061 51,027 43,716 54,192 69,559 Extraordinary income 3,198 425 1,806 23,250 451 Extraordinary losses 1,346 4,452 728 1,811 249 Income before income taxes 64,913 47,000 44,794 75,631 69,760 Income taxes - current 12,412 18,993 3,853 27,163 17,448 Income taxes - deferred 2,817 (4,917) 6,901 (3,958) 1,514 Total income taxes 15,229 14,076 10,754 23,205 18,963 Profit 49,683 32,923 34,039 52,426 50,797 Profit attributable to non-controlling interests 3,055 2,968 2,802 4,699 4,334 Profit attributable to owners of parent 46,628 29,954 31,237 47,726 46,462 3. Supplementary information (1) Quarterly transition of consolidated statements of income - 18 -