Daiwa Securities Group Inc. · TSE:8601

Daiwa Securities — Q1 2026 Earnings Presentation

35 slides from Daiwa Securities's earnings presentation, Aug 3, 2026

  1. Slide 1: 1Q FY2026 Earnings Announcement

    1Q FY2026 Earnings Announcement Daiwa Securities Group Inc. August 3, 2026 The purpose of this material is to provide information on our business performance through the first quarter of FY2026 and our management vision for the future, and is not intended as a solicitation to invest in securities is

  2. Slide 2: Financial Results for the First Quarter of FY2026

    Financial Results for the First Quarter of FY2026 ⚫ 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 23-36 Definitions of the terms used in this document WM W

  3. Slide 3: Highlights (1Q/FY2026, YoY)

    Highlights (1Q/FY2026, YoY) Strong start to the final year of the mid-term management plan. All business segments delivered revenue and profit growth, driven by strong corporate and investor activity despite market uncertainty. % Changes vs Consolidated earnings results FY2026 1Q FY2025 1Q 1Q/FY2025

  4. Slide 4: Summary (1Q/FY2026, QoQ)

    Summary (1Q/FY2026, QoQ) Earnings growth across all business segments; ROE rose to 12.7%. % Changes vs Consolidated earnings results FY2026 1Q 4Q/FY2025 Net operating revenues ¥ 220.3 bn +11.4 % Ordinary income ¥ 88.0 bn +31.4 % Profit attributable to owners of parent ¥ 56.4 bn +13.2 % ◼ WM Division

  5. Slide 5: Financial Summary

    Consolidated Financial Summary FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 Operating revenues 326,400 375,349 373,862 392,369 434,364 10.7% 33.1% 1,467,983 Net operating revenues 155,252 172,628 194,646 197,899 220,399 11.4% 42.0% 720,427 SG&A 119,074 122

  6. Slide 6: Segment Summary

    Consolidated Segment Summary (¥ Millions) FY2025 FY2026 % Change % Change Net operating revenues vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 WM 62,905 74,689 77,100 81,093 88,230 8.8% 40.3% 295,788 WM Division (Daiwa Securities) 55,500 65,759 68,988 71,447 77,031 7.8% 38.8% 261,695 Daiwa Next Bank 6

  7. Slide 7: Segment Summary

    Consolidated Segment Summary (¥ Billions) Net operating revenues Ordinary income WM Division AM Division WM Division (Daiwa Securities) Daiwa Next Bank 88.2 81.0 Securities AM Real Estate AM Alternative AM 74.6 77.1 62.9 40.9 37.2 33.1 30.3 29.5 29.5 28.2 32.6 24.9 26.1 19.7 16.3 14.7 22.2 12.0 1Q 2

  8. Slide 8: Trends in Consolidated Ordinary Income and Base Income

    Consolidated Trends in Consolidated Ordinary Income and Base Income ◼ Base income for 1Q FY2026 reached ¥62.8 bn (YoY +83.8%, QoQ +15.5%). ◼ Well ahead of the ¥150.0 bn mid-term plan target, with steady progress in building a resilient earnings base (¥ Billions) Consolidated Ordinary Income / Base I

  9. Slide 9: B/S Summary

    Consolidated B/S Summary Consolidated Balance Sheet (June 30, 2026) (¥ Billions) Current assets 37,960 (1,740) Current liabilities 34,539 (1,560) Total assets: ¥39.86 tn Cash and deposits 4,876 (1,086) Trading products 9,400 (639) Short-term investment securities 2,134 (-6) Trading securities and ot

  10. Slide 10: Financial Management (Regulatory Capital & Regulatory Liquidity)

    Consolidated Financial Management (Regulatory Capital & Regulatory Liquidity) Consolidated Capital Adequacy Ratio 【Regulatory Capital (Basel III)】 Total qualifying capital (¥ billions) Common equity tier 1 (¥ billions) Consolidated total capital ratio Consolidated common equity tier 1 capital ratio

  11. Slide 11: P/L Summary

    Consolidated P/L Summary ※ Comparisons of increase/decrease are quarter-on-quarter unless otherwise noted from this page onward. FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 ◼ Commissions received increased (+9.3%). Operating revenues 326,400 375,349 373,8

  12. Slide 12: Breakdown of SG&A

    Consolidated Breakdown of SG&A FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 ◼ SG&A increased (+3.3%). SG&A 119,074 122,785 132,882 138,351 142,887 3.3% 20.0% 513,094 ◼ Transaction-related expenses increased, reflecting higher Trading related expenses 23,49

  13. Slide 13: Cost Structure

    Consolidated Cost Structure FY2024 FY2025 FY2026 (¥ Billions) 1Q 2Q 3Q 4Q 1Q-4Q 1Q 2Q 3Q 4Q 1Q-4Q 1Q Total SG&A 114.0 119.4 124.4 121.3 479.2 119.0 122.7 132.8 138.3 513.0 142.8 Variable costs 45.2 50.1 54.9 52.1 202.5 47.4 50.0 58.4 61.0 217.0 63.7 Trading related expenses 21.9 22.5 23.0 24.1 91.7

  14. Slide 14: Ordinary Income of Overseas Operations

    Consolidated Ordinary Income of Overseas Operations % Change % Change FY2025 FY2026 (¥ Millions) vs vs FY2025 4Q/FY25 1Q/FY25 1Q 2Q 3Q 4Q 1Q Overseas Operations Total 3,813 7,619 8,393 6,919 13,144 90.0% 244.7% 26,745 ◼ Overseas businesses posted record high ordinary income Europe -1,958 324 160 38

  15. Slide 15: WM Division

    WM Division % Change % Change Net Operating Revenues and Ordinary Income FY2026 (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 Equity 100 Net operating 88,230 8.8% 40.3% 295,788 revenues Fixed income Ordinary 80 37,274 12.4% 88.9% 112,033 Distribution income commission for investment trust 【Equity】 Ag

  16. Slide 16: WM Division Daiwa Securities

    WM Division Daiwa Securities Sales and Distribution Amount by Product 【Wrap Account Service】 Equity 2,000 ◼ Both contract amount of ¥357.7 bn and net inflows of ¥237.6 bn remain at strong levels. ◼ Wrap account AUM reached a record-high of ¥6.76 tn*. SMA + Fund Wrap 1,500 【Equity Investment Trusts】

  17. Slide 17: WM Division Daiwa Next Bank

    WM Division Daiwa Next Bank FY2026 % Change % Change Daiwa Next Bank Deposit Balance & Number of Accounts (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 (¥ Billions) (Thousands) 6,000 2,500 Net interest Yen deposits 13,053 16.2% 35.0% 42,151 income, etc. Foreign currency deposits 5,000 Number of accou

  18. Slide 18: AM Division Securities AM

    AM Division Securities AM % Change % Change FY2026 Daiwa Asset Management AUM (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 Net operating 21,271 7.8% 40.0% 70,722 60,000 revenues Investment Advisory AUM Ordinary 50,000 Private Investment Trusts 15,709 37.6% 109.0% 37,652 income Public Investment Trus

  19. Slide 19: AM Division Real Estate AM

    AM Division Real Estate AM % Change % Change Real Estate Asset Management Business AUM of Two Companies* FY2026 (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 * Daiwa Real Estate Asset Management, Samty Residential Investment Corp. 2,000 Net operating Daiwa Office 13,327 47.2% 37.9% 36,885 Investment

  20. Slide 20: AM Division Alternative AM

    AM Division Alternative AM FY2026 % Change % Change Principal Investment Balance (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 400 Net operating 6,329 - 88.6% 4,321 revenues Energy and Ordinary infrastructure* 4,815 - 15X -5,272 300 income 【Alternative AM】 Private equity and PIPEs ◼ Recorded capital

  21. Slide 21: GM&IB Division GM

    GM&IB Division GM % Change % Change Net Operating Revenues and Ordinary Income FY2026 (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 60 Net operating 53,854 4.9% 65.4% 168,472 revenues Ordinary 50 18,198 2.3% 589.5% 40,805 income Equity 40 【Equity】 FICC ◼ Flows from both institutional investors and we

  22. Slide 22: GM&IB Division GIB

    GM&IB Division GIB % Change % Change Net Operating Revenues and Ordinary Income FY2026 (¥ Millions) vs vs FY2025 1Q 4Q/FY25 1Q/FY25 30 Net operating 22,658 -6.1% 31.2% 88,922 revenues Equity 25 Ordinary underwriting 3,273 52.5% 262.4% 14,566 income 20 【Equity】 <Offering size> Debt ¥250.0 bn underwri

  23. Slide 23: Reference

    Reference

  24. Slide 24: Breakdown of Commission

    Consolidated Breakdown of Commission FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 Total commission 100,398 118,300 128,579 131,203 143,423 9.3% 42.9% 478,481 Brokerage commission 21,153 26,968 29,578 31,983 34,975 9.4% 65.3% 109,684 Underwriting and second

  25. Slide 25: Assets under Custody

    Assets under Custody 120 Equity Japanese bonds 100 Foreign bonds 80 Equity 60 investment trusts Bond investment trusts 40 Foreign investment trusts 20 Others 0 FY2024 FY2025 FY2026 (¥ Trillions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Equity 61.3 60.2 62.7 60.2 63.2 68.5 72.7 70.7 80.2 Japanese bonds 13.1 13.4 1

  26. Slide 26: Number of Accounts and Equity Trading

    Number of Accounts and Equity Trading FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Accounts with balance (thousands) 3,132 3,171 3,183 3,209 3,210 3,235 3,246 3,277 3,314 Accounts holding equity (thousands) 1,467 1,488 1,493 1,507 1,501 1,494 1,491 1,492 1,495 Online trading accounts (thousands)

  27. Slide 27: Net Asset Inflow

    Net Asset Inflow WM Division (Daiwa Securities) WM Division (Daiwa Securities) Net Asset Inflow Net Asset Inflow (Individuals) 600 Corporation 600 Net inflow of cash Individual Net inflow of securities 500 500 400 400 300 300 200 200 100 100 0 0 -100 -100 FY2024 FY2025 FY26 FY2024 FY2025 FY26 (¥ Bil

  28. Slide 28: Asset-Based Revenues

    Asset-Based Revenues Asset Balance by Product Composition of Revenues Equity Investment Trusts, Wrap Account Contract AUM, Foreign Currency Deposits 80 Flow revenues 14 AUC of equity investment trusts Asset-based revenues Contract AUM of Wrap Account 70 Foreign currency deposits 12 60 10 50 8 40 6 3

  29. Slide 29: League Table

    League Table Primary and Straight bonds M&A secondary equity IPO (excl. family Agency bonds Municipal bonds (Number of offerings bonds) deals) FY2026 1Q League Table Nomura Nomura Daiwa Daiwa SMBC Nikko 1st Mizuho 29.3% 40.1% 22.9% 24.9% 22.1% Daiwa Goldman Sachs SMBC Nikko Mitsubishi UFJMS Daiwa Mi

  30. Slide 30: Value at Risk

    Consolidated Value at Risk Range and Assumptions of VaR ◼ Confidence level: 99% (one-side test) ◼ Holding period: 1 day ◼ Adjusted for price correlation between products FY2024 FY2025 FY2026 (¥ Billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q VaR （Quarter end） 1.14 1.13 1.30 1.41 1.09 1.13 0.94 1.08 1.01 High 1

  31. Slide 31: Number of Group Employees

    Consolidated Number of Group Employees FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 15,280 15,229 15,165 15,093 15,558 15,571 15,485 15,298 15,803 Overseas 1,910 1,973 1,952 1,949 1,876 1,892 1,858 1,829 1,839 ※ Number of employees as at the end of each quarter. ※ Total figures are the sum

  32. Slide 32: Daiwa Securities Balance Sheet

    Daiwa Securities Balance Sheet Daiwa Securities Balance Sheet (June 30, 2026) (¥ Billions) Current assets 17,391 (-107) Current liabilities 15,612 (-209) Trading products 8,025 (-109) Trading products 7,181 (296) Trading securities and other 3,096 (-694) Trading securities and other 2,244 (-316) Der

  33. Slide 33: Financial Summary I

    Daiwa Securities Financial Summary I FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 Operating revenues 118,567 134,068 142,928 152,057 159,491 4.9% 34.5% 547,621 Commission received 67,451 79,588 83,426 84,441 94,198 11.6% 39.7% 314,907 Brokerage commission

  34. Slide 34: Financial Summary II

    Daiwa Securities Financial Summary II FY2025 FY2026 % Change % Change (¥ Millions) vs vs FY2025 1Q 2Q 3Q 4Q 1Q 4Q/FY25 1Q/FY25 SG&A 67,641 71,003 74,621 76,377 82,407 7.9% 21.8% 289,643 Trading related expenses 11,106 11,695 12,409 12,762 15,114 18.4% 36.1% 47,974 Personnel expenses 27,908 29,889 31

  35. Slide 35: Contact Daiwa Securities Group Inc. Investor Relations

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

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