FY2003 Earnings Results- Reference Data -

Daiwa Securities Group Inc.

This presentation may contain forward-looking statements about the Daiwa Securities Group. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies, contain projections of results of operations or of financial condition or state other “forward-looking” information. These statements are based on currently available information and represent the beliefs of the management of the Daiwa Securities Group. These statements are subject to numerous risks and uncertainties that could cause the Daiwa Securities Group’s actual results, performance, achievements or financial condition to differ materially from those described or implied in the forward-looking statements. The Daiwa Securities Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatile and sudden mov ements in the international securities markets, foreign exchange and global economic situations affecting the Daiwa Securities Group.

　　2

Table of Contents

15Daiwa Securities Online Transactions

23Daiwa Asset Management Monthly Payment Foreign Bond Investment Trust

24Number of Group Employees

22Asset Management Investment Trust Market in Japan

21Equity Transactions Overview

8Daiwa Securities SMBC Financial Summary

7Daiwa Securities Breakdown of SG&A

25Changes in Shareholder Composition

20Daiwa Securities SMBC 　　　　–VaR

19Daiwa Securities SMBC Principal Investments

18Daiwa Securities SMBC Investment Banking (2)

13Daiwa Securities Number of Accounts

12Assets under Custody

11Main Group Companies

10Daiwa Asset Management Financial Summary

9Daiwa Securities SMBC Breakdown of SG&A

17Daiwa Securities SMBC Investment Banking (1)

16Daiwa Securities Daiwa Direct Course

14Daiwa Securities Net Inflow of Retail Funds

6Daiwa Securities Financial Summary

5Highlights of Balance Sheet - Consolidated -

4Cost Structure - Consolidated -

3Breakdown of Operating Revenues - Consolidated -

　　3

FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q FY2003 FY2002 y/y %

Change

Equity 24,107 20,808 22,086 13,058 8,134 80,060 47,242 69.5%Brokerage commission 23,641 20,373 21,597 12,581 7,878 78,193 45,403 72.2%Others 465 435 488 476 255 1,866 1,838 1.5%

Bond 1,311 1,352 1,550 1,004 1,755 5,219 4,585 13.8%Brokerage commission 21 653 247 319 285 1,242 1,163 6.8%Others 1,290 699 1,302 684 1,470 3,977 3,422 16.2%

Investment trust 12,695 10,005 10,560 9,783 8,878 43,045 40,870 5.3%Brokerage commission 61 43 65 37 33 208 275 -24.2%Distribution commission 6,782 4,530 5,389 5,200 3,689 21,904 14,058 55.8%Other commissions 5,851 5,431 5,104 4,545 5,155 20,932 26,535 -21.1% (Agency commission) (3,060) (2,839) (2,664) (2,375) (2,576) (10,940) (13,506) (-19.0%)

Investment banking 19,813 18,064 12,796 5,130 11,939 55,805 39,637 40.8%Underwriting commission 16,122 15,656 10,241 4,073 7,986 46,093 27,945 64.9% (Equities) (13,437) (13,447) (8,963) (1,078) (4,883) (36,927) (18,092) (104.1%) (Bonds) (2,106) (2,166) (1,230) (2,897) (2,945) (8,400) (9,522) (-11.8%)Distribution 687 605 241 127 416 1,661 608 173.2%Others (M&A commission etc.) 3,004 1,802 2,312 929 3,536 8,049 11,083 -27.4%

Others 2,285 2,728 2,448 2,570 2,597 10,032 11,947 -16.0%Total commission 60,213 52,960 49,441 31,547 33,305 194,162 144,282 34.6%Gain/loss on trding 11,450 9,179 20,544 8,849 -9,803 50,024 1,936 -Gain/loss on bond and forex 16,885 14,041 4,413 34,830 35,593 70,171 91,995 -23.7%

Bonds 14,970 7,453 2,586 22,256 28,088 47,267 67,194 -29.7%Forex 1,915 6,588 1,827 12,573 7,504 22,904 24,801 -7.7%

Total gain/loss on trading 28,336 23,221 24,958 43,679 25,790 120,195 93,932 28.0%

(Millions of yen)

Breakdown of Operating Revenues- Consolidated -

　　4

4Q 3Q 2Q 1Q Total

25.1 22.3 21.6 21.4 90.4Commission &other expenses

10.6 10.1 9.9 9.2 39.8

Bonus 9.4 7.9 7.4 8.2 32.9Overtime,part-time

2.1 2.2 1.9 1.9 8.0

43.7 41.5 43.1 41.2 169.5

Personnel costs 24.1 23.9 24.0 24.1 96.1Real estateexpenses 8.8 7.7 8.2 7.8 32.5

Depreciation 6.1 5.2 5.2 5.0 21.5

Office expense 3.4 3.2 3.6 3.2 13.4Taxes other thanincome taxes

1.2 1.2 2.0 1.2 5.6

FY2003

Variable costs

Fixed costs

Cost Structure - Consolidated -

36.7 37.1 36.5 36.1 36.3 37.9 36.2 37.6

20.7 19.5 18.9 21.4 21.6 22.3

6.15.25.25.05.55.25.25.1

20.225.1

0

10

20

30

40

50

60

70

80

1Q/02 2Q/02 3Q/02 4Q/02 1Q/03 2Q/03 3Q/03 4Q/03

(Y bil)

Variable Costs Fixed Costs Depreciation

(Billions of yen)

　　5

Highlights of Balance Sheet - Consolidated -

Operational Investment Securities

39.2 37.7 37.145.2 45.6 43.5 41.8 40.7

0

10

2030

40

50

6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

Tangible Assets

180.9 175.8 171.3 162.3 157.9 155.9 153.9 143.1

0

50

100

150

200

6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

Other Investments

105.4 103.2115.7 116.4 109.2

93.0 97.3 97.7

0

50

100

150

6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

(Y bil)

External Debt

500 478 473512535546575 552

0

200

400

600

800

6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

　　6

Daiwa SecuritiesFinancial Summary

(Millions of yen) FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q FY2003 FY2002 y/y %

Change

Operating revenues 47,409 39,385 41,743 43,066 34,463 171,605 129,817 32.2%

Commissions 38,887 33,642 33,881 26,975 21,597 133,388 93,204 43.1% Brokerage (Stock and others) 18,100 16,717 17,337 9,330 5,415 61,486 34,177 79.9% Brokerage (Bond and others) 0 0 0 0 0 0 0 18.9% Distribution 14,637 11,301 10,322 11,777 10,486 48,038 31,980 50.2% (Bond and others) 2,789 1,810 1,884 6,072 5,349 12,556 12,412 1.2% (Investment trust) 6,458 4,397 5,331 5,179 3,518 21,366 13,207 61.8% Other commission 6,105 5,588 6,168 5,838 5,667 23,701 26,808 -11.6% (Investment trust) 2,849 2,656 2,495 2,216 2,413 10,218 12,425 -17.8%

Net gain on trading securities 8,082 5,274 7,573 15,793 12,518 36,724 34,990 5.0% Stock and others 484 273 258 206 91 1,222 274 345.4% Bond, forex and others 7,598 5,000 7,315 15,587 12,427 35,501 34,715 2.3%

Interest and dividend income 439 468 287 297 347 1,492 1,623 -8.0%Interest expenses 77 80 107 123 134 388 505 -23.2%

Net operating revenues 47,332 39,304 41,636 42,943 34,329 171,216 129,311 32.4% SG&A 35,829 33,520 33,902 32,884 31,139 136,136 125,810 8.2%

Ordinary income (Loss) 11,617 5,806 7,697 10,098 3,147 35,219 3,531 897.2%Net income (Loss) 6,549 2,825 4,058 5,838 1,530 19,272 1,047 ‐‐‐‐

Capital adequacy ratio 363.3% 419.4% 410.9% 412.1% 379.5% 363.3% 379.5% ‐‐‐‐

　　7

(Millions of yen) FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q FY2003 FY2002 y/y %

Change

SG&A 35,829 33,520 33,902 32,884 31,139 136,136 125,810 8.2%

Commission andother expenses 6,219 5,622 5,825 4,968 5,376 22,635 20,105 12.6%

Personnel costs 16,969 15,796 15,771 15,868 13,634 64,406 56,091 14.8%

Real estate expenses 5,103 4,892 5,132 4,847 5,114 19,975 20,274 -1.5%

Office expenses 5,181 5,012 4,882 4,824 4,611 19,901 19,684 1.1%

Depreciation 1,599 1,558 1,567 1,542 1,763 6,268 6,869 -8.8%

Taxes other thanincome taxes 107 98 94 204 68 504 458 10.0%

Others 649 539 628 628 571 2,445 2,326 5.1%

Daiwa SecuritiesBreakdown of SG&A

　　8

(Millions of yen) FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q

FY2003 FY2002 y/y %Change

Operating revenues 45,015 39,200 38,438 39,027 29,866 161,681 118,300 36.7%Commissions 23,961 19,833 15,946 8,767 14,994 68,508 52,073 31.6%

Brokerage (Stock and others) 3,484 2,712 3,040 2,345 1,924 11,584 8,228 40.8% Brokerage (Bond and others) 10 9 9 7 21 37 99 -62.5% Underwriting commission (Stock and others) 12,754 11,838 7,187 996 4,113 32,776 16,144 103.0% Underwriting Commission (Bond and others) 2,099 2,097 1,640 2,781 2,470 8,619 8,424 2.3% Distribution 352 227 189 92 342 861 1,159 -25.7% Other commissions (M&A and others) 4,668 2,896 3,816 2,438 5,954 13,820 17,649 -21.7%

Net gain/loss on trading securities 16,078 13,896 13,706 22,148 8,371 65,829 44,308 48.6% Stock and others 9,405 7,102 18,360 7,268 -10,729 42,136 -1,646 ‐‐‐‐

Bond, forex and others 6,673 6,793 -4,654 14,879 19,100 23,692 45,954 -48.4%Interest and dividend income 4,975 5,471 8,785 8,111 6,500 27,343 21,919 24.7%Interest expenses 2,538 2,417 2,190 2,319 2,057 9,465 7,425 27.5%Net operating revenues 42,476 36,783 36,247 36,707 27,808 152,216 110,875 37.3% SG&A 30,992 27,086 25,785 27,467 25,849 111,332 95,401 16.7%Ordinary income ----------------------- (A) 11,767 9,665 10,590 9,850 1,832 41,873 16,565 152.8%Net income (Loss) 5,781 5,248 6,288 5,908 -1,391 23,227 6,357 265.4%Capital adequacy ratio 336.9% 426.7% 424.3% 468.3% 370.0% 336.9% 370.0%

Daiwa Securities SMBC PrincipalInvestments' ordinary income --- (B) 1,649 2,128 854 841 1,377 5,473 5,974 -8.4%

Ordinary income total ---------- (A)+(B) 13,417 11,793 11,444 10,691 3,210 47,346 22,497 110.5%

Daiwa Securities SMBCFinancial Summary

　　9

(Millions of yen) FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q

FY2003 FY2002 y/y %Change

SG&ASG&ASG&ASG&A 30,992 27,086 25,785 27,467 25,849 111,332 95,401 16.7%

Commission andother expenses

14,423 11,616 10,188 12,164 11,534 48,393 37,571 28.8%

Personnel costs 6,218 5,934 5,928 6,181 5,385 24,263 21,582 12.4%

Real estate expenses 2,883 2,471 2,631 2,456 2,555 10,442 10,320 1.2%

Office expenses 3,340 3,568 3,417 3,593 3,159 13,919 14,132 -1.5%

Depreciation 3,168 2,626 2,630 2,261 2,395 10,686 8,566 24.7%

Taxes other thanincome taxes

467 568 657 415 469 2,109 1,737 21.4%

Others 489 301 331 393 348 1,516 1,490 1.7%

Daiwa Securities SMBCBreakdown of SG&A

　　10

Daiwa Asset ManagementFinancial Summary

(Millions of yen) FY20034Q

FY20033Q

FY20032Q

FY20031Q

FY20024Q FY2003 FY2002 y/y %

Change

Operating revenues 4,477 4,383 4,142 3,634 4,293 16,638 22,865 -27.2%

Management fee 4,455 4,322 4,103 3,613 4,275 16,494 22,736 -27.5%

Equity investment trust 4,248 4,054 3,795 3,260 3,331 15,359 15,446 -0.6%

Bond investment trust 206 268 308 352 943 1,135 7,289 -84.4%

of which MMF 117 160 184 214 231 677 1,735 -60.9%

Other operating revenues 22 60 39 21 18 143 128 11.6%

SG&A 4,378 4,303 4,090 4,052 4,625 16,825 22,260 -24.4%

Commissions paid 2,273 2,210 2,111 1,834 2,273 8,430 12,609 -33.1%

Other SG&A 2,104 2,092 1,979 2,217 2,352 8,394 9,651 -13.0%

Operating income (loss) 99 80 51 -417 -331 -186 604 ‐‐‐‐

Ordinary income (loss) 153 315 164 138 -287 772 1,556 -50.4%

Net income (loss) -143 18 259 87 -487 221 -138 ‐‐‐‐

　　11

FY2003(Millions of yen,

y/y % Chg)

Operating revenues 15,656 -77.7% 171,605 32.2% 161,681 36.7% 16,638 -27.2% 65,388 6.0%

SG&A 8,155 7.6% 136,136 8.2% 111,332 16.7% 16,825 -24.4% 9,075 -0.6%

Operating income 1,359 -97.6% 35,079 902.1% 40,884 164.2% -186 - 5,667 52.9%

Ordinary income 1,855 -96.8% 35,219 897.2% 41,873 152.8% 772 -50.4% 5,529 60.5%

Group holdings(as of Mar. 2004)

FY2003(Millions of yen,

y/y % Chg)

Operating revenues 7,336 8.4% 8,558 1.0% 17,402 50.4% 5,207 288.5%

SG&A 4,345 8.2% 8,111 3.3% 727 128.5% 3,916 1.2%

Operating income 568 4.8% 447 -27.8% 5,904 38.8% 492 -

Ordinary income 523 -3.5% 448 -28.5% 4,019 97.4% 465 -

Group holdings(as of Mar. 2004)

44.0% 100.0% 93.5% 79.2%

100.0% 60.0% 100.0% 100.0%

Daiwa AssetManagement

Daiwa Instituteof Research

Daiwa SBInvestments

Daiwa SecuritiesBusiness Center Daiwa Property NIF Ventures

Daiwa SecuritiesGroup Inc. Daiwa Securities Daiwa Securities

SMBC

---

Main Group Companies

　　12

Assets under Custody

DaiwaSecurities

DaiwaSecurities

SMBC

DaiwaSecurities

DaiwaSecurities

SMBC

DaiwaSecurities

DaiwaSecurities

SMBC

DaiwaSecurities*

Changevs 12/03

DaiwaSecurities

SMBC**

Changevs 12/03

7,164 6,755 6,349 5,253 8,840 7,568 10,325 1,485 8,967 1,399

3,350 6,686 4,052 7,697 4,252 8,303 4,394 142 8,146 -157

5,158 1,263 3,902 1,044 4,175 923 4,313 138 1,001 78

(Equities) 1,458 313 1,168 277 1,575 380 1,749 174 477 97

(Bonds) 3,700 949 2,733 767 2,599 542 2,564 -35 524 -18

60 205 47 1,317 59 895 75 16 1,278 383

15,733 14,911 14,351 15,312 17,327 17,690 19,109 1,782 19,394 1,704 Total

(Billions of yen)

Investment Trust

Equity

Bonds

Others

03/2003 03/200403/2002 12/2003

Note: Equity figures includes CB and Warrants.

*Foreign currency bonds (including Euro yen) under custody at Daiwa Securities amounted to JPY 1,579.6 bil. (10.0% out of total assets of Daiwa Securities) in 3/2002, JPY 2,108.7 bil. (14.7%) in 3/2003, JPY 2,360.7.2 bil. (13.6%) in 12/2003, and JPY 2,475.9 bil. in 3/2004 (13.0%).** Amount of assets under custody such as foreign currency bonds from Group companies: JPY 2,780 bil.

　　13

Daiwa SecuritiesNumber of Accounts

Note1: Cash management service “Port One” commenced in 12/02. The figures up to 11/02 are for CMP accounts.Note1: Figures for “Daiwa Direct” up to 3/03 are the sum of Daiwa Call and Daiwa Net

6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04CMS (Cash Management Service)Accounts 2,074 2,102 2,278 2,292 2,303 2,332 2,373 2,430

Accounts holding equity* 1,022 1,028 1,023 1,015 1,147 1,140 1,134 1,121

Online trading accounts 500 532 609 639 658 692692692692 770770770770 807807807807

“Daiwa Direct” course accounts 205 216 236 244 252 268268268268 282282282282 313313313313

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Newly opened accounts 40 48 191 31 38 50 47 51

(Accounts associated with IPO ofTaiyo Life Insurance Co.) (10) (150)

FY2002 FY2003(Thousands of Accounts)

*# of designated accounts was 800,000 as of the end of 3/04.

　　14

-400

-200

0

200

400

600

800

1,000

Unlisted Corporation etc. 334.2 130.2 -269.3 -87.5 60.4 18.6 41.4 -60.8 88.8 33.5 14.7 -0.5 3.5 9.6 -13.6

Retail 438.0 353.9 128.7 34.7 69.9 186.1 288.0 -29.4 72.5 230.0 268.2 189.0 79.8 72.0 37.2

Total 772.2 484.1 -140.6 -52.8 130.3 204.7 329.4 -90.3 161.3 263.5 282.9 188.4 83.3 81.6 23.5

Ragistered Bonds - - - - 80.8 75.5 59.5 58.9 67.4 44.7 42.4 34.1 8.3 12.6 13.2

1Q/01 2Q/01 3Q/01 4Q/01 1Q/02 2Q/02 3Q/02 4Q/02 1Q/03 2Q/03 3Q/03 4Q/03 1/04 2/04 3/04

(Y bil)

Inflow(+) = net inflow/outflow of funds + net deposit/withdrawal of securities

Daiwa SecuritiesNet Inflow of Retail Funds

4Q Breakdown

Funds Securities TotalRetail +102.1 +86.8 +189Unlisted Coporates +13.6 -14.1 -0.5Total +115.7 +72.7 +188.5Registered Bonds 34.1+ indicates inflow, - indicates outflow

4Q FY2003 (Billions of yen)

　　15

Daiwa SecuritiesOnline Transactions

Online TransactionsOnline TransactionsOnline TransactionsOnline Transactions

1,217,725

65.7%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1Q/02 2Q 3Q 4Q 1Q/03 2Q 3Q 4Q0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Transactions Online Ratio

Note: Numbers including transactions via the call center,Daiwa Call, from 3Q FY03.Number of Transactions via Daiwa Call wasapproximately 72,000 (3.9%) in 4Q FY03.

Online Trading ValueOnline Trading ValueOnline Trading ValueOnline Trading Value

715,120

34.4%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1Q/02 2Q 3Q 4Q 1Q/03 2Q 3Q 4Q0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Trading Value Online Ratio

Note: Numbers including transactions via the call center,Daiwa Call, from 3Q FY03.Trading Value via Daiwa Call was approximately JPY 51.5 bil (2.4%) in 4Q FY03.

(# of Transactions) (Y mil)

　　16Number of accounts and assets under custody at ‘Daiwa Direct’ were approximately 310,000 and JPY 700 bil. (3/04).

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

12/02 3/03 6/03 9/03 12/03 3/040

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

# of Direct accounts# of Online accountsAssets under custody at "Daiwa Direct"Assets under custody for total online accounts

Accounts and Assets under Custody of Online and Daiwa Direct Accounts(Y bil)(# of Accounts)

Daiwa SecuritiesDaiwa Direct Course

　　17　　　　

Daiwa Securities SMBCInvestment Banking (1)

Major lead manager deals during 4Q FY2003 (including joint lead issues)

未更新未更新未更新未更新

� Straight BondsSMBC(JPY 100 bil.), SMBC subordinate bond(JPY 60 bil.), Toyota Finance(JPY 50 bil.), Matsushita Electric Works(JPY 30 bil.), Sumitomo Trust & Banking Co., subordinate bond(JPY 30 bil.), NTT Data(JPY 20 bil.), J-Power(JPY 20 bil.), Mazda(JPY 20 bil.) etc

� Agency BondsJapan Finance Corp. for Small Business(JPY 20 bil.), Japan Finance Corp. for Municipal Enterprises(JPY 20 bil.), #1 Honshu-shikoku Bridge Authority(JPY 12 bil.), #2 Honshu-shikoku Bridge Authority(JPY 10 bil.), Kansai International Airport(JPY 10 bil.), The Japan Scholarship Foundation(JPY 5 bil.)

� Samurai BondsKorea Container Terminal Authority(JPY 5 bil.)

� Structured Finance　　　　

CMBS issued by Izumi Garden Tower (Issue JPY 74 bil., Underwriting JPY 37 bil.)RMBS issued by SMBC (Issue & Underwriting JPY 105 bil.)SMBC Auto Leasing Company (Securitization of lease; Issue & Underwriting JPY 10.3 bil.)RMBS issued by Chuo Mitsui Trust and Banking (Issue JPY 180 bil., Underwriting JPY 72 bil.)IPO of Mori Trust REIT (Issue JPY 80 bil., Underwriting JPY 48 bil.)SANYO Electric (Securitization of credit and affiliated loan; Issue &

Underwriting JPY 12.5 bil.)

　　18

� M&A

� Advisor to Daiei.Sold US investment funds, a baseball ground, a hotel and shopping mall in relation to their Business in Fukuoka. Debt write-offs were carried out with six main banks. The company will maintain Fukuoka Daiei Hawks, a professional baseball team, compensating all losses.

� Advisor to Kanebo.Kanebo filed for support with the Industrial Revitalization Corporation. Kanebo transferred its cosmetic business to its takeover company, in which the Industrial Revitalization Corporation injected capital and provided loans. Kanebo reduced debt utilizing funds gained by the transfer.

Daiwa Securities SMBCInvestment Banking (2)

Major deals during 4Q FY2003

Major lead manager deals during 4Q FY2003 (including joint lead issues)

� Equity Primary and Secondary Offerings, and Convertible BondsFuji Television Network(Primary, secondary offering, JPY 125.9 bil.), Sumitomo Realty & Development(Primary, secondary offering, JPY 75 bil.), NOK(Primary, secondary offering, JPY 15.6 bil.), JSAT(Secondary offering, JPY 14.5 bil.), Japan Aviation Electronics Industry(Secondary offering, JPY 10.3 bil.), Nitori(Primary, secondary offering, JPY 7.1 bil.), etc.

� IPOSegami Medics(JPY 3.5 bil.), etc.

　　19

Daiwa Securities SMBC Principal Investments

� Real estate investmentInvestment in domestic real estate “Japan Real Estate Recovery Fund”

� Purchased approximately 60 properties including office buildings and company dormitories located nationwide for the second series.

� Investments outstandingJPY 63.5 bil. (total for Daiwa Securities SMBC and Daiwa SMBCPI) as of Mar/04� Non-performing loans JPY 39.7 bil., real estate JPY 7.8 bil., private equity JPY 12.5 bil., investments in other funds etc. JPY 3.5 bil.

� Increase of limit and reinforcement of equity capital

� Increased investment limit from JPY 50 bil. to JPY 100 bil. In response to the growing number of investments.� Issued equity of JPY 3 bil. (1.5 bil. in capital) to reinforce the equity base in response to the expansion of investment limits (capital increased from JPY 0.5 bil. to JPY 2 bil.).� Shareholder’s Equity as of 03/2004 increased to approximately JPY 11 bil. due to equity issuance and retained earnings.

　　20

(Billions of yen)

Daiwa Securities SMBC -VaR

(Month End) 3/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

Equity 2.68 2.01 1.13 1.06 1.23 0.74 0.42 0.63 0.39 1.11 0.78 0.52

Interest 0.88 0.65 0.61 0.19 0.46 0.36 0.30 0.58 0.68 0.85 0.51 0.54

Currecy 0.02 0.02 0.04 0.02 0.04 0.03 0.02 0.02 0.05 0.04 0.10 0.05

Total 3.58 2.68 1.77 1.27 1.73 1.13 0.74 1.23 1.12 2.00 1.39 1.11

DiversificationBenefit -0.57 -0.53 -0.38 -0.19 -0.36 -0.29 -0.19 -0.46 -0.18 -0.26 -0.45 -0.36

VaR 3.01 2.15 1.39 1.08 1.37 0.84 0.55 0.77 0.94 1.74 0.94 0.75

� FY2003 high: JPY 1.99 bil., low: JPY 0.46 bil., average: JPY 0.96 bil.� 4Q FY03 high: JPY 1.57 bil., low: JPY 0.71 bil., average: JPY 1.03 bil.

Range and assumption of VaR� Confidence level: 99%� Holding period: 1day� Adjusted for price correlation between products

　　21

Equity Transactions Overview

FY20021Q

FY20022Q

FY20023Q

FY20024Q

FY20031Q

FY20032Q

FY20033Q

FY20034Q

Average daily trading value in TSE, OSE, and NSE (Billions of yen) 801 657 598 595 715 1,150 1,197 1,346

Share of individual investors (%) 14.9 13.2 18.9 13.3 16.3 20.1 21.6 21.5

Daiwa Securities Group 8.7 8.2 8.8 9.0 9.1 7.1 6.7 6.7

Daiwa Securities (Retail) 1.6 1.3 2.0 0.9 1.1 1.4 1.3 1.3

Daiwa Securities SMBC (Wholesale)

(on and off floor) 7.1 6.9 6.8 8.0 8.0 5.8 5.4 5.5

(out of hours and off floor ) 23.1 16.2 19.4 22.0 23.7 20.8 18.7 15.3*

Daiwa Securities / TSE, OSE, NSE 9.1 8.1 10.6 5.1 5.7 6.3 5.9 5.8

Commission rate 0.5 0.5 0.4 0.7 0.7 0.7 0.7 0.7

Market Data

Market share in Tokyo Stock Exchange (on and off floor transaction) (%)

Share of Daiwa Securities (Retail) among individual investors’ transactions at TSE, OSE, and NSE (%)

Daiwa Securities equity commission rates　　　　 　　　　 　　　　 　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 (%)

* preliminary figures

　　22

0

10,000

20,000

30,000

40,000

50,000

60,000

(Y bil)

MMF+MTGBF 16,980 13,770 16,610 20,299 18,747 21,545 23,154 10,451 8,620 8,001 7,416 6,892 6,373 5,855 5,473

Bonds 18,910 16,890 14,640 15,357 16,041 16,820 19,221 15,502 12,420 11,641 10,712 10,451 10,728 10,241 10,281

Equities 12,780 9,980 11,500 15,696 14,610 14,452 13,281 15,309 16,461 16,372 16,266 18,328 20,100 21,339 23,276

Nikko AM 8,300 8,268 7,852 7,789 6,924 7,276 8,684 4,126 4,474 4,112 3,817 3,780 3,775 3,736 3,864

Nomura AM 10,000 10,155 9,329 12,240 15,101 15,976 15,221 13,587 11,541 11,090 10,421 10,562 11,286 10,811 10,829

Daiw a AM 8,000 9,321 11,603 13,999 10,887 12,014 13,103 8,271 7,244 6,788 6,326 6,203 6,141 5,989 5,947

96 97 98 99 00 3/01 9/01 3/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

Source: The Investment and Trust Association

Asset ManagementInvestment Trust Market in Japan

　　23

Daiwa Asset ManagementMonthly Payment Foreign Bond Investment Trust

0

50

100

150

200

250

3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04

(Y bil)

Daiwa Global Bond FundDaiwa Oceania Bond FundDaiwa European Bond FundHigh-Grade Oceania Bond OpenDaiwa High-Rating CAD Bond OpenDaiwa High-Rating AUD Bond OpenDaiwa High-Rating Euro Bond OpenHigh-Grade USD Bond FundDaiwa High-Rating USD Bond Open

　　24

� Total figure is the sum of consolidated group companies and Daiwa SB Investments.

� The figure of Daiwa Securities includes the number of Security Advisers (SA).

� The figure of Daiwa Securities SMBC includes the number of people of Daiwa Securities SMBC Principal Investments.

12,979 12,963 12,65212,677 12,82013,16513,48812,83413,50312,47813,019

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

3/00 3/01 6/01 3/02 6/02 12/02 3/03 6/03 9/03 12/03 3/04

Daiwa Securities Group Inc. Daiwa SecuritiesDaiwa Securities SMBC Other Domestic CompaniesOverseas

Number of Group Employees

268(-1)

(# of People)

6,363(-195)

1,795(-16)

3,044(+41)

1,182(+3)

(-168)

(Changes are from 12/03)

　　25

Changes in Shareholder Composition

Types ofinvestors

Individuals 20.7 %

Financialinstitutions 39.8

Bank 6.4

Trust banks 25.1Otherinstitutions 6.2

Foreigners 31.2

Others 2.1

Total 100

Ratio ofnumber

of shares

March-04

Types ofinvestors

Individuals 18.0 %Financialinstitutions 45.2

Banks 7.9

Trust banks 27.8Otherinstitutions 6.5

Foreigners 29.1

Others 1.2

Total 100

Ratio ofnumber

of shares

March-03

Types ofinvestors

Individuals 17.9 %Financialinstitutions 41.6

Banks 7.4

Trust banks 25.2Otherinstitutions 6.4

Foreigners 33.1

Others 1.0

Total 100

Ratio ofnumber

of shares

September-03

< Contact >Daiwa Securities Group Inc.Investor Relations

TEL +81-3-3243-3841FAX +81-3-3242-0955E-mail: ir-section@dsgi.daiwa.co.jpURL: http://www.ir.daiwa.co.jp/