Daiwa Securities Group Inc. · TSE:8601
Daiwa Securities — Daiwa Investment Conference Tokyo 2016
32 slides from Daiwa Securities's conference presentation, Mar 1, 2016
Slide 1: Daiwa Investment Conference Tokyo 2016
Daiwa Securities Group Inc. Daiwa Investment Conference Tokyo 2016 Presented on Tuesday, March 1, 2016 at “The Prince Park Tower Tokyo” Takashi Hibino, President and CEO Daiwa Securities Group Inc. This presentation may contain forward-looking statements about the Daiwa Securities Group. You can ide
Slide 2: Contents
Daiwa Investment Conference Tokyo 2016 Contents Ⅰ - Business Environment ・・・・ 3 Ⅱ - Achievements in the Medium Term Management Plan ・・・・ 7 Ⅲ - Progress of Individual Strategies for Basic Policies ・・・・ 13 Ⅳ - Basic Group Strategies ・・・・ 23 Appendix ・・・・ 28 2
Slide 3: Ⅰ- Business Environment
Ⅰ- Business Environment 3
Slide 4: Changes to the Economic Environment
Ⅰ- Business Environment Changes to the Economic Environment Real GDP (Jan. 2007 - Dec. 2015) (QoQ, %) Consumption 4.5 tax increase 3.0 1.5 2015 2.0 0.0 Imports Exports -1.5 1.0 Publ. Demand -3.0 Start of the second Abe administration Priv. 0.0 Inventories -4.5 Priv. Non-Resi. 2007 2008 2009 2010 201
Slide 5: Changes to the Market Environment
Ⅰ- Business Environment Changes to the Market Environment Nikkei 225 and JPY/USD Rate (Jan. 2007 – Feb. 2016) (Yen) (JPY/USD) Peak in 2015: 21,000 20,952yen Fed raises 130 interest 20,000 rate 125 19,000 18,000 120 17,000 Global stocks fall on China worries 16,000 BOJ introduces negative interest 11
Slide 6: Consolidated Results of 3Q FY2015
Ⅰ- Business Environment Consolidated Results of 3Q FY2015 Consolidated net operating revenues: Y403 bil; Ordinary income: Y136.5 bil; Profit attributable to owners of parent company: Y95.5 bil for 1Q-3Q FY2015. % Change % Change (Y mil) FY2015 FY2014 FY2015 vs vs FY2014 1Q 2Q 3Q 2Q/15 1Q-3Q 1Q-3Q
Slide 7: Ⅱ- Achievements in the Medium Term Management Plan
Ⅱ- Achievements in the Medium Term Management Plan 7
Slide 8: Medium Term Management Plan (“Passion for the Best” 2017)
Ⅱ- Achievements in the Medium Term Management Plan Medium Term Management Plan (“Passion for the Best” 2017) In response to the full-fledged start of an era of transition from savings to investment, attract customers with the industry’s top quality, and become their best partner FY 2015 FY 2016 FY 2
Slide 9: Progress of Medium Term Management Plan (Numerical Targets)
Ⅱ- Achievements in the Medium Term Management Plan Progress of Medium Term Management Plan (Numerical Targets) Fixed Cost Coverage Ratio: ROE: 10% or more 75% or more in the final fiscal year (FY2017) Profit attributable to Shareholders’ ROE（excl. effect of losses Stable Fixed cost Fixed cost owners
Slide 10: Trend of Fixed Cost Coverage Ratio
Ⅱ- Achievements in the Medium Term Management Plan Trend of Fixed Cost Coverage Ratio The Group will aim to further strengthen its robust business structure through disciplinary cost control and steady expansion of stable revenues. Trend of Stable Revenues, Fixed Cost, and Fixed Cost Coverage Rati
Slide 11: Expansion of Stable Revenues
Ⅱ- Achievements in the Medium Term Management Plan Expansion of Stable Revenues The Group’s stable revenues for 3Q FY2015 (annualized) have increased approximately 10% from FY2014, mainly due to expansion of AUM for wrap accounts. The Group will continue to focus on expanding stable revenues cen
Slide 12: Business Opportunities and Basic Policies
Ⅱ- Achievements in the Medium Term Management Plan Business Opportunities and Basic Policies Business opportunities expected over the medium term: full-fledged start of an era of transition from savings to investment Move away from deflation Spread of successful Government support on Enhancement of
Slide 13: Ⅲ- Progress of Individual Strategies for Basic Policies
Ⅲ- Progress of Individual Strategies for Basic Policies 13
Slide 14: Expansion of Fee-based Products and Services (Wrap Account Services)
Ⅲ- Progress of Individual Strategies Establish product and service platforms in response to the needs of a wide range of investors Expansion of Fee-based Products and Services (Wrap Account Services) AUM for wrap account services (SMA and fund wraps) at Daiwa Securities were Y1.5 tri. (as at the e
Slide 15: Respond to the Expanding Inheritance Business
Ⅲ- Progress of Individual Strategies Establish product and service platforms in response to the needs of a wide range of investors Respond to the Expanding Inheritance Business By placing inheritance consultants and increasing the number of application for “Inheritance Total Service”, we prepare t
Slide 16: Further Develop the Combined Securities-Banking Business Model
Ⅲ- Progress of Individual Strategies Establish product and service platforms in response to the needs of a wide range of investors Further Develop the Combined Securities-Banking Business Model Further develop the securities-banking business model to serve as a gateway from savings to investments
Slide 17: Improve Consulting Services in Quality and Quantity
Ⅲ- Progress of Individual Strategies Establish product and service platforms in response to the needs of a wide range of investors Improve Consulting Services in Quality and Quantity - Increase Interaction with Clients - Aim to enhance the quality and quantity of proposals to customers by continui
Slide 18: Expand New Client Base Centered on Inbound-Type Clients
Ⅲ- Progress of Individual Strategies Establish product and service platforms in response to the needs of a wide range of investors Expand New Client Base Centered on Inbound-Type Clients Continue making multidimensional efforts in order to expand new client base. Number of NISA Accounts with Accum
Slide 19: Strengthen Asset Management Abilities (Investment Trusts)
Ⅲ- Progress of Individual Strategies Strengthen asset management abilities Strengthen Asset Management Abilities（Investment Trusts） Total AUM of stock investment trusts (excluding ETFs) for the two asset management companies (Daiwa Asset Management and Daiwa SB Investments) have maintained the lar
Slide 20: Expansion of Asset Management Business - Real Estate and Infrastructure
Ⅲ- Progress of Individual Strategies Strengthen asset management abilities Expansion of Asset Management Business - Real Estate and Infrastructure - Since the asset management company of Japan Rental Housing Investments, Mi-Casa Asset Management, has been made a consolidated subsidiary, assets und
Slide 21: Provide Solutions to M&A Needs with Quadri-Polar Structure
Ⅲ- Progress of Individual Strategies Provide solutions in response to corporate globalization and M&A needs Provide Solutions to M&A Needs with Quadri-Polar Structure Promote support for providing cross border M&A solutions utilizing a quadri-polar structure spanning Japan, Asia, Europe (Daiwa Cor
Slide 22: Proactive Promotion of Alliance Strategy with a Focus on Asia
Ⅲ- Progress of Individual Strategies Proactive promotion of alliance with a focus on Asia Proactive Promotion of Alliance Strategy with a Focus on Asia Enhance business network in Asia through expanding alliance network with leading Asian financial institutions. Thailand China Philippines Thanacha
Slide 23: Ⅳ- Basic Group Strategies
Ⅳ- Basic Group Strategies 23
Slide 24: Capital Policy Aimed at the Sustainable Improvement of Corporate Value
Ⅳ - Basic Group Strategies Capital Policy Aimed at the Sustainable Improvement of Corporate Value Strive for an optimum balance between “maintenance of financial soundness”, “improvement of capital efficiency” and “strengthening of shareholder returns”, and ultimately aim for sustainable corporate
Slide 25: Strengthen Shareholder Returns
Ⅳ- Basic Group Strategies Strengthen Shareholder Returns In order to strengthen shareholder returns, we raised our dividend pay-out ratio from 30% to Raised dividend 40% beginning this fiscal year. pay-out ratio Aim to maintain an upward trend of dividends by continuously improving our earnings
Slide 26: Maintenance of Financial Soundness
Ⅳ- Basic Group Strategies Maintenance of Financial Soundness Consolidated total capital ratio was 21.8% (provisional) at the end of December 2015, but we Financial Soundness aim to secure sufficient level of capital and liquidity to give leeway in case of extreme market downturn and to respond to
Slide 27: HR Strategy
Ⅳ- Basic Group Strategies HR Strategy In order to become the “customers’ first choice” securities group, employees are the most valuable asset for the Group. By strategic placement of human resources and planned training, we aim to strengthen organizational capabilities. Supporting the Success of
Slide 28: Appendix
Daiwa Securities Group
Slide 29: PBR and % of Companies with PBR Below 1x for TSE 1st Listed Companies
Appendix PBR and % of Companies with PBR Below 1x for TSE 1st Listed Companies pre-Lehman high PBR（東証1部上場企業） 日次データ PBR (TSE1 Listed Companies) daily data 2.1 2.04 （2007/2/26） 1.9 1.7 Peak after start of Abenomics 1.5 1.44 （2015/6/24） 1.3 start of the second Abe administration 1.1 1.02 （2012/12/26） R
Slide 30: Corporate Earnings, Estimated Dividend Yield for TSE 1st Listed Companies and 10-year JGB Yield
Appendix Corporate Earnings, Estimated Dividend Yield for TSE 1st Listed Companies and 10-year JGB Yield Corporate Earnings (Daiwa 200*) * Earnings estimation by Daiwa Securities consists of 199 major listed companies, excluding financials institutions. （Y tri） 35 Ordinary Income of Daiwa 200 Compan
Slide 31: Management Vision for 2020
Appendix Management Vision for 2020 Management Vision “Be the First Choice” Lead the development of capital markets in Japan and Asia, and be the customer’s first choice securities group Basic Management Policy Leverage the industry's Achieve sustainable growth top quality and dramatically by linkin
Slide 32: Daiwa Securities Group Inc. Investors Relations
Daiwa Securities Group Inc. Investors Relations TEL: +81-3-5555-1300 FAX: +81-3-5555-0661 E-mail: ir-section@daiwa.co.jp URL: http://www.daiwa-grp.jp/ir/english 32
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