Daiwa Securities Group Inc. · TSE:8601

Daiwa Securities — Investor Presentation (May 2026)

64 slides from Daiwa Securities's investor presentation, May 21, 2026

  1. Slide 1: FY2026 Management Strategy

    FY2026 Management Strategy May 21, 2026 Akihiko Ogino, President and CEO Daiwa Securities Group Inc. These materials were produced to provide information on results through the fourth quarter of FY2025 and the management’s vision for the future. They are not intended as a solicitation for investment

  2. Slide 2: Table of Contents

    Table of Contents Ⅰ- Overview of the Year 2 of the Medium-Term Appendix 34 Management Plan 4  Group KPI 36  Business Environment 5  ROE by Segment 37  Medium-Term Plan Progress and Earnings KPI 6  Quarterly Trends in Consolidated Results 39  Challenges for Further Growth 7  Asset-Based Revenu

  3. Slide 3: Final year of the Medium-Term Management Plan: strengthening earnings structure

    In the final year of the Medium-Term Management Plan, we will further solidify our earnings structure to be more resilient to the external environment, and set the stage for accelerated growth in the next plan. 3

  4. Slide 4: Overview of Year 2 of the Medium-Term Management Plan

    Ⅰ- Overview of the Year 2 of the Medium- Term Management Plan

  5. Slide 5: Expanding Profit Opportunities amid a Supportive Business Environment

    Ⅰ- Overview of the Year 2 of the Medium-Term Management Plan Expanding Profit Opportunities amid a Supportive Business Environment  Equity valuations increased in FY2025, supported by solid corporate earnings.  Accelerating the shift “from savings to investment” and progress in corporate actions a

  6. Slide 6: Steady Growth in Base Income; On Track to Outperform the Mid-Term Plan

    Ⅰ- Overview of the Year 2 of the Medium-Term Management Plan Steady Growth in Base Income; Now on Track to Outperform the Mid-Term Plan  ROE is steadily improving. We aim to further enhance it through (1) EPS growth, (2) improved risk/return by business, and (3) realization of growth investments in

  7. Slide 7: Mid-Term Plan Progress and Challenges for Further Growth

    Ⅰ- Overview of the Year 2 of the Medium-Term Management Plan Mid-Term Plan Progress and Challenges for Further Growth  Aiming for further profit growth through addressing challenges in each segment. Ordinary Ordinary Income Income Progress* Achievements Challenges Actions FY26 Target FY25 WM Divisi

  8. Slide 8: Individual Strategies

    Ⅱ– Individual Strategies

  9. Slide 9: Further Advancement of "From Savings to Investment"

    Ⅱ- Individual Strategies Further Advancement of "From Savings to Investment"  Japanese equities are expected to deliver long-term returns of approximately 8.5%. Under this assumption, the Nikkei Stock Average is estimated to reach approximately ¥300,000 by 2045.  Household financial assets are pro

  10. Slide 10: Key Points of Acquisition of ORIX Bank as a Subsidiary

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) Key Points of Acquisition of ORIX Bank as a Subsidiary 1 Evolution to Total Asset Management Business Model Non-Linear Improvement in Consolidated 3 ROE via Strategic Use of Capital Buffer Targeti

  11. Slide 11: The Best Integration to Generate Maximum Synergy

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) The Best Integration to Generate Maximum Synergy  Through the integration of the two banks, achieve a strong balance sheet with appropriate diversification between loans and securities, and betwe

  12. Slide 12: Pursuing Higher Ordinary Income / ROE through Capital-Efficient Asset Build-up

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) Pursuing Higher Consolidated Ordinary Income / ROE through Capital- Efficient Asset Build-up  Investment funds of ¥3.5 tn allocated mainly to capital-efficient real-estate-backed loans and securi

  13. Slide 13: Advancing toward a Total Asset Management Business Model

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) Advancing toward a Total Asset Management Business Model Integrating Securities and Banking  Enhance customer satisfaction through high-quality, comprehensive consulting and optimal portfolio off

  14. Slide 14: Enhancing Value Proposition through Integrated Securities, Banking, and Real Estate Model

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) Enhancing Value Proposition through an Integrated Securities, Banking, and Real Estate Model  Addressing each customer’s diverse needs accurately through an integrated securities, banking, and re

  15. Slide 15: High Probability of Synergy: Deposit Expansion & BOJ Current Account

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) High Probability of Synergy: Deposit Expansion & BOJ Current Account  Over the past 1 year, Daiwa Next Bank's JPY time deposits increased by approx. ¥660 bn. However, the number of JPY time-depos

  16. Slide 16: High Probability of Synergy: Expansion of Investment-Property Loans

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) High Probability of Synergy: Expansion of Investment-Property Loans  Driven by the growing number of single-person households and rising housing prices in Greater Tokyo, demand for rental housing

  17. Slide 17: High Probability of Synergy: Strong Demand for Securities-Backed Loans

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) High Probability of Synergy: Strong Demand for Securities-Backed Loans  Demand for securities-backed loans, which enable funding and risk diversification without selling holdings, is expanding. 

  18. Slide 18: Morgan Stanley's Banking Function in the U.S. has Grown Significantly

    1. Wealth Management Division 2 3 4 Ⅱ- Individual Strategies (Acquisition of ORIX Bank as a Subsidiary) Morgan Stanley’s Banking Function in the U.S. has Grown Significantly  Morgan Stanley provides banking services that address the deposit and borrowing needs of its Wealth Management Division cust

  19. Slide 19: Daiwa Securities: Sustained Asset Inflows and Growth in Cash-Funded Purchases

    Ⅱ- Individual Strategies 1. Wealth Management Division (Daiwa Securities) 2 3 4 Daiwa Securities: Sustained Asset Inflows and Growth in Cash-Funded Purchases  Since the launch of total asset consulting, asset inflows in the Wealth Management Division have continued to trend upward.  Cash-funded pu

  20. Slide 20: Daiwa Securities: Room to Expand Business with Corporate Customers

    Ⅱ- Individual Strategies 1. Wealth Management Division (Daiwa Securities) 2 3 4 Daiwa Securities: Room to Expand Business with Corporate Customers Covered by WM Division (Daiwa Securities)  Revenue and customer assets have grown steadily, led by corporate owners and unlisted companies. We will furt

  21. Slide 21: Securities AM: Accelerating AUM Growth

    Ⅱ- Individual Strategies 1 2. Asset Management Division 3 4 Securities AM: Accelerating AUM Growth  As of the end of March 2026, Securities AM AUM reached ¥44 tn, achieving the FY2026 target of ¥42 tn ahead of schedule.  Triggered by the capital and business alliance with Japan Post Insurance, beg

  22. Slide 22: Real Estate AM: AUM Expansion Drives Stable Growth in Base Income

    Ⅱ- Individual Strategies 1 2. Asset Management Division 3 4 Real Estate AM: AUM Expansion Drives Stable Growth in Base Income  Real estate AM AUM continues to grow steadily, supported by private fund formation at Daiwa Real Estate, with early achievement of the FY2030 target in sight. Rent increase

  23. Slide 23: AlternativeAM: Promoting a Transition to an Asset Management Model

    Ⅱ- Individual Strategies 1 2. Asset Management Division 3 4 AlternativeAM: Promoting a Transition to an Asset Management Model  Transitioning from a track record–building phase through proprietary investments to a fund business phase driven by external capital, with a focus on capital efficiency. D

  24. Slide 24: AlternativeAM: Daiwa Corporate Investment - Vietnam Partnership

    Ⅱ- Individual Strategies 1 2. Asset Management Division 3 4 AlternativeAM: Daiwa Corporate Investment - Three-party partnership with SSIAM and CCIX for Vietnam investment -  Daiwa Corporate Investment (DCI) entered into a memorandum of understanding (MoU) with SSI Asset Management (SSIAM), affiliat

  25. Slide 25: GM: Building a Framework for Revenue Expansion

    Ⅱ- Individual Strategies 1 2 3. Global Markets & Investment Banking 4 GM: Building a Framework for Revenue Expansion  Equity: Aim to further expand revenue by broadening the client base and deepening client relationships.  FICC: Aim to expand revenue by enhancing the provision of sophisticated inv

  26. Slide 26: GIB: Expanding Revenue in Japan and Overseas through Enhanced Solutions Capabilities

    Ⅱ- Individual Strategies 1 2 3. Global Markets & Investment Banking 4 GIB: Expanding Revenue in Japan and Overseas through Enhanced Solutions Capabilities  Capture expanding IB business opportunities in Japan and overseas; drive expansion into growth areas and strengthen solutions capabilities.  G

  27. Slide 27: Capital & Business Alliance with Airborne Capital Limited

    Ⅱ- Individual Strategies 1 2 3 4. Others Capital & Business Alliance with Airborne Capital Limited  Airborne Capital Limited: strengthening the partnership broadens the base of aircraft investment opportunities in Japan and captures growth in the aircraft investment market.  Japan's first open-end

  28. Slide 28: AI Moving from Heavy Use to Delivering Results

    Ⅱ- Individual Strategies 1 2 3 4. Others AI Moving from Heavy Use to Delivering Results  Rapidly established AI environments, drive broad employee adoption, and delivering convenience at customer touchpoints at the earliest opportunity.  Going forward, AI will be integrated into business and opera

  29. Slide 29: Mastering AI Within the Group and Expanding to Enterprise Services

    Ⅱ- Individual Strategies 1 2 3 4. Others Mastering AI Within the Group and Expanding to Enterprise Services  As an early adopter of AI in the industry, creating value by validating, refining, and mastering the technology within the group.  By delivering these as Daiwa Institute of Research enterpr

  30. Slide 30: Financial and Capital Strategy

    Ⅲ- Financial and Capital Strategy

  31. Slide 31: Financial and Capital Strategy

    Ⅲ- Financial and Capital Strategy Financial and Capital Strategy  Achieve sustainable increases in corporate value by balancing “financial soundness, return on capital, growth investments, and shareholder returns.”  For the medium-term management period from FY2024 to FY2026, we will introduce a m

  32. Slide 32: Capital Allocation Strategy

    Ⅲ- Financial and Capital Strategy Capital Allocation Strategy  During the current Medium-Term Management Plan period, we will pursue aggressive growth investments while maintaining financial soundness, alongside shareholder returns that include flexible additional distributions. Growth investments

  33. Slide 33: Promotion of Inorganic Strategy to "Maximize Customer Asset Value"

    Ⅲ- Financial and Capital Strategy Promotion of Inorganic Strategy to “Maximize Customer Asset Value”  Promoting an inorganic growth strategy aimed at expanding our customer base, enhancing our functions and product offerings, and pursuing open innovation.  As an independent comprehensive securitie

  34. Slide 34: Appendix

    Appendix

  35. Slide 35: Maximize Customer Asset Value

    Appendix The main pillar of the new medium-term management plan is to “Maximize Customer Asset Value” Basic Group “Maximize Customer Asset Value” Management Policy Contribute to the medium and long-term maximization of customer asset value/corporate value by expanding our understanding of customer n

  36. Slide 36: Numerical Targets: Group KPI

    Appendix Numerical Targets: Group KPI FY2026 Company FY2023 FY2025 WM AM GM&IB Targets wide ¥240 bn Ordinary Income ¥174.5 bn ¥234.5 bn or higher Earnings ROE 8.3% 10.3% Roughly 10% Base Income*1 ¥114.2 bn ¥182.7 bn ¥150 bn Assets under Custody*2 ¥91.0 tn ¥104.0 tn ¥120 tn Customer Stock-Related Ass

  37. Slide 37: Accurately Monitor Capital Profitability by Segment/Business

    Appendix Accurately Monitor Capital Profitability by Segment/Business  Aim to improve consolidated ROE by accurately monitoring capital efficiency by segment and business, reallocating capital and personnel. Capital Usage (RWA base) and Business Attributes ROE by Segment* Figures for ROE, capital u

  38. Slide 38: Measures at improving PBR: Group strategy and Group KPIs

    Appendix Measures at improving PBR: Group strategy and Group KPIs Strengthen  Ordinary Income earnings power  Base Income Profit Increase profitability Control operating  Amount of cost reductions attributable to income and expenses expenditure structure reforms Risk/Return Profit  ROE by segmen

  39. Slide 39: Quarterly Trends in Consolidated Financial Results (FY2021–FY2025)

    Appendix Quarterly Trends in Consolidated Financial Results (FY2021–FY2025) Ordinary Income Profit Attributable to Owners of Parent (¥ Billions) (¥ Billions) 80 72.8 60 69.5 67.0 53.7 49.8 63.0 46.6 47.7 46.4 60 56.7 54.1 51.0 39.5 40 43.7 40.5 40.8 40.8 37.7 29.7 28.4 29.9 31.2 40 34.9 36.9 36.0 26

  40. Slide 40: Towards a More Robust Earnings Structure, Less Affected by External Conditions

    Appendix Towards a More Robust Earnings Structure, Less Affected by External Conditions  Enhance productivity through AI-powered base-cost management, building a corporate constitution that can sustain growth investments.  Appropriately control recurring "base costs," excluding environmental and o

  41. Slide 41: WM Division: Past Efforts to Establish Wealth Management Business Model

    Appendix WM Division: Past Efforts to Establish Wealth Management Business Model  Over the past eight years, we have continued working to establish an asset management business model without being affected by changes in our environment. Past initiatives have produced a Corporate culture certain lev

  42. Slide 42: WM Division: Driving Sustainable Revenue Growth through Total Asset Consulting

    Appendix WM Division: Driving Sustainable Revenue Growth through Total Asset Consulting and External Partnerships  Steady penetration of portfolio proposals through total asset consulting aimed at “Maximize Customer Asset Value,” combined with customer base expansion via inorganic strategies, is dr

  43. Slide 43: WM Division: Strategies Based on the Attributes of Our Customers

    Appendix WM Division: Strategies Based on the Attributes of Our Customers  The proposal lead identifies customers on which to focus approach and implements strategy based on customer attributes and needs. Strategies Based on the Attributes of Our Customers (Daiwa Securities) Strong Proposal lead Pr

  44. Slide 44: WM Division: Fund Wrap Potentials (1/2)

    Appendix WM Division: Fund Wrap Potentials (1/2)  Daiwa’s Fund Wrap offers comprehensive consulting services and a diverse product lineup that meet customers’ needs. Also has strong performance track record.  As a result, the AUM per contract is around twice the industry average, and new contracts

  45. Slide 45: WM Division: Fund Wrap Potentials (2/2)

    Appendix WM Division: Fund Wrap Potentials (2/2)  Increasing possibilities of shifting ¥1,139 trillion cash and deposits in households as a countermeasure to hedge against inflation risk and forex risk preparing for longer lifespan. Core assets Satellite assets Expected returns Fund Wrap Semi Aggre

  46. Slide 46: WM Division: Steady Growth in Securities Balance Driven by Customer Base Expansion (1/2)

    Appendix WM Division: Steady Growth in Securities Balance Driven by Customer Base Expansion（1/2）  Leverage our expertise, experience, and platform in the securities business through collaboration with external partners to provide investment services in securities. Collaboration with Japan Post Bank

  47. Slide 47: WM Division: Steady Growth in Securities Balance Driven by Customer Base Expansion (2/2)

    Appendix WM Division: Steady Growth in Securities Balance Driven by Customer Base Expansion（2/2）  Contributing to the enhancement of customers' asset value by creating new investment opportunities and developing financial services that meet diverse customer needs. Expanding Sales Channels for Fund

  48. Slide 48: WM Division: Household Financial Assets Long-Term Forecast

    Appendix WM Division: Household Financial Assets Long-Term Forecast  The wealth management business faces a structural shift as customers age.  As wealth concentrates among older clients, face-to-face securities services — including inheritance and business-succession solutions — are becoming incr

  49. Slide 49: Delivering Holistic Solutions to Evolving and Complex Customer Needs

    Appendix Delivering Holistic Solutions to Evolving and Complex Customer Needs  Delivering optimal, end-to-end solutions across the balance sheet, tailored to clients’ life stages and asset profiles, leveraging WM, AM, and GM & IB. Diverse Needs Driven by Customers’ Life Stages and Customer Segments

  50. Slide 50: Overview of Daiwa Next Bank

    Appendix Overview of Daiwa Next Bank  Daiwa Next Bank was started in April 2011 as a gateway bank for the securities business within the Daiwa Securities Group.  Daiwa Securities' comprehensive trading accounts are linked with Daiwa Next Bank's deposit accounts, enabling idle funds awaiting securi

  51. Slide 51: Overview of ORIX Bank

    Appendix Overview of ORIX Bank  Originally established as Yamaichi Trust Bank in 1993 and became part of the ORIX Group in 1998. A new-type bank with both lending and trust functions.  Investment real estate loans as the core business, with a top-class market position in investment condominium loa

  52. Slide 52: WM × AM: Expansion of Alternative Assets

    Appendix WM×AM: Expansion of Alternative Assets  Daiwa Securities proposes optimal portfolios tailored to each customer’s life plan and asset situation through Investment Planning.  By incorporating alternative assets at an appropriate holding ratio, diversification and operational efficiency are

  53. Slide 53: Securities AM: Updates on Capital and Business Alliance with Japan Post Insurance

    Appendix Securities AM: Updates on Capital and Business Alliance with Japan Post Insurance  Japan Post Insurance became 20% shareholder of Daiwa Asset Management in Oct. 2024. Aim for full-scale entry into the investment advisory business including alternative asset management, enhance asset manage

  54. Slide 54: Aozora Bank: Cross-Divisional Collaboration Delivers Tangible Partnership Results

    Appendix Aozora Bank: Cross-Divisional Collaboration Delivers Tangible Partnership Results  Centered on the Corporate and GIB division, broad cross-divisional collaboration of solutions and client referrals has progressed, contributing to the steady realization of alliance benefits. Collaboration P

  55. Slide 55: Overseas: Identify the Competitive Advantage of Each Region

    Appendix Overseas: Identify the Competitive Advantage of Each Region and Optimize the Allocation of Management Resources  For our overseas business, we aim not only for stable profits, but also for further growth by leveraging the strengths of each region.  We pursue efficient business operations

  56. Slide 56: Shareholder Return Results

    Appendix Shareholder Return Results  The annual dividend for FY2025 reached a record high of 64 yen (interim: 29 yen, year-end: 35 yen). Trend of Dividends per Share Trend in Shareholder Returns Net income attributable to Total Share buyback Interim dividend Year-end dividend owners of the parent d

  57. Slide 57: Human Capital / HR Strategy

    Appendix Human Capital / HR Strategy  Promote increases to medium and long-term corporate value by increasing employee engagement and maximizing the value of human capital. Main strategy KPI/Other Coefficients • Link series of actions to improving engagement, increasing human capital value, and Sur

  58. Slide 58: Our Group's Vision: Vision 2030

    Appendix Our Group’s Vision: Vision 2030  “Creating a prosperous future through financial and capital markets” is the concept underlying our Group management vision.  In the era of 100-year lifespans, as professionals in the financial and capital markets we will provide high-quality solutions whil

  59. Slide 59: The Connection between Sustainability KPIs and Increasing Corporate Value

    Appendix The Connection between Sustainability KPIs and Increasing Corporate Value  Enhance corporate value by promoting the expansion of sustainable businesses and strengthening the sustainable operating base that will support those businesses. Purpose of setting Connection with corporate Material

  60. Slide 60: AI Initiatives

    Appendix AI Initiatives  We have been an early adopter of AI, actively leveraging it not only for operational efficiency but also to enhance customer convenience.  Going forward, we will advance AI application to total-asset consulting — the core of our business — while fundamentally promoting AI

  61. Slide 61: Corporate Governance

    Appendix Corporate Governance  The ratio of female directors on the Board is 42.9%. Board of Directors Composition after approval at 89th AGM (on June 19, 2026) 2 internal directors Non-executive out of 6 Outside directors Female directors directors （7 out of 14） （8 out of 14） （6 out of 14） 50.0% 5

  62. Slide 62: Credit Ratings

    Appendix Credit Ratings Ratings (as of May 21, 2026) History of Daiwa Securities Group Rating / Outlook Changes Daiwa Securities Group Inc. 2024 R&I Daiwa Securities Group Inc. A+ / Stable ▲ Upgrade Long-term May Rating Agency Outlook Daiwa Securities A+ / Stable Rating R&I A+ Stable 2024 JCR ▲ Outl

  63. Slide 63: External Ratings & Certifications

    Appendix External Ratings & Certifications Analyst Ranking Inclusion in Indexes (Daiwa Securities) Chosen in ALL GPIF selected ESG indexes Nikkei Veritas (Equity) 2026 Analyst Ranking 1st Nikkei Veritas (FICC) 2026 Analyst Ranking Ranked 1st place for 4 consecutive years Dow Jones Best-in-Class Asia

  64. Slide 64: Investor Relations Office, Daiwa Securities Group Inc.

    Investor Relations Office, Daiwa Securities Group Inc. E-mail: ir-section@daiwa.co.jp URL: https://www.daiwa-grp.jp/english/ir/

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