March 28, 2005
Nikko Cordial Corporation
Nikko Cordial Securities Inc.
Summary of Remarks by Junichi Arimura (President & CEO)
Meeting of Group Companies, Nikko Cordial Corporation (Mar. 25, 2005)
andGeneral Managers’ Meeting, Nikko Cordial Securities Inc. (Mar. 26, 2005)
KeynoteØ Market awareness –“The era of direct financing”
Individual financial assets are shifting from savings to investment
A general feeling of unrest prevails among individuals toward the pension
systems, lifting of bank deposit guarantees, low interest rates, etc.
Investment targets will expand not only domestically but also globally.
Corporations are adopting growth strategies utilizing the capital market
Growth strategies that employ M&A or capital integration will become brisk.
Activities will unfold globally, with more involvement of foreign capital.
Ø Nikko Cordial Corporation’s Commitment
Greeting the era of direct financing, Nikko Cordial Corporation, as a top
industry runner, will aim to become a company that best contributes to thefuture of our nation’s financial markets, by creating synergies among ourever-solidified Group companies and making the most of the Group’s
excellent management resources (human resources, financial position,business partners, etc.).
Nikko Cordial Corporation Overview of FY2004
Although earnings at Nikko Cordial Securities (retail) and Nikko Citigroup(wholesale) declined, earnings at our merchant banking arm, Nikko Principal
Investments, increased significantly.
The Group has realized an earnings structure that is not affected by market
fluctuations by diversifying its earnings sources.

This material is an English translation of a Japanese announcement made on March 28, 2005. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed and thus you are encouraged to refer to the original Japanese document.

Ø Key management policies implemented in FY2004
Enhanced Management Infrastructurel Shifted to a company adopting a committee-style corporate governancesysteml Appointed an Executive Officer for each of the four core businessesl Expanded corporate disclosure
Strengthened Retail Sales Foundation (execution of Nikko Cordial Securities“36-month Business Plan”)
Overall, the plan progressed smoothly. Major achievements under the planare as follows:l Attained of consulting assets introduction of nearly 4 trillion yen andexpanded high-net-worth customersl Distributed products of high added value, including alternative asset
products and real estate related productsl Increased the number of FAs and IFAs (1892 as of Apr 1)
l Expanded securities brokerage businesses, including Lawson andregional bank projects
Wholesale B usinessl Formed business alliance with Mizuho Corporate Bank and Mizuho
Securitiesl Revitalized management at Nikko Citigroup
Asset Management B usinessl Implemented management reform at Nikko Asset Managementl Nikko Asset Management was named “The Best Fund Group” by Lipper
Fund Awards Japan 2005
Merchant Banking B usinessl Attained increased earnings through exits of past investment projects
l Implemented aggressive investments, namely Bell System 24 (domestic)
and Resolution Life Group (British life insurance portfolio)
Cost Control
l Well-balanced cost control initiatives which have been thoroughlyThis material is an English translation of a Japanese announcement made on March 28, 2005. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed and thus you are encouraged to refer to the original Japanese document.

implemented for the past several years were maintained, aiming toincrease productivity while implementing “aggressive management.”
Risk Managementl Strengthened our information management system to control risks andprepared a systems back-up site so that business activities can beretained with minimal damage, in the event such risks become
detectable.
Management for FY2005
Ø Main players in “the era of direct financing” are those possessing “CapitalMarket DNA .”Those possessing “Capital Market DNA,” genes that are inherent in people
engaged in businesses relating to direct financing, will lead and determine
the future of financial businesses.
Ø What is “Capital Market DNA”
“Capital Market DNA” represents the following four abilities:
1) The ability to logically propose and explain optimal investment
opportunities, squarely facing the relationship between risk and return2) The ability to propose corporate management and financial strategies
based on an understanding of the principles and rules of the capital market
3) The ability to originate and provide cutting edge investment products
through a global research on investment opportunities
4) The ability to take risks aggressively while generating returns under anadvanced risk control system through a global research on investment
opportunitiesØ Assigned Group Executive Officers in correspondence to the four abilities of“Capital Market DNA”
Corresponding to the four abilities of “Capital Market DNA,” the Group’s
operations are classified into four core businesses. A Group Executive
Officer is assigned to each of these businesses to undertake high value
added operations from a global perspective, possibly with the aim of seeking
business alliance and M&A opportunities.
This material is an English translation of a Japanese announcement made on March 28, 2005. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed and thus you are encouraged to refer to the original Japanese document.

1) Retail business: The foundation of the Group’s competitiveness. Our
ongoing challenge is to expand/strengthen our sales foundation in bothquality and quantity.
2) Wholesale business: Our challenge is to provide best solutions forcorporate strategies, capitalizing on our business alliance with Mizuho
Corporate Bank and Mizuho Securities3) Asset management business: Our challenge is to finalize thestrengthening of our business foundation and to smoothly expand ourbusiness contents
4) Merchant banking business: Our challenge is to further strengthen risk
management structure, while continuing to implement aggressive
investments on a global scale
Enhance Communication with Shareholders and Investors
Ø Expand corporate disclosure
Disclose dividend forecasts
Disclose unrealized profits/loss on listed securities holdings
Ø Enhance the appropriateness of outstanding stocks
Subject to special resolution at the General Shareholders Meeting, we willimplement a share combination so that our outstanding sha res will beappropriately sized considering the market capitalization. At the same time,
we will decrease the number of shares constituting one unit of stock in orderto preserve the rights of shareholders and the convenience/liquidity ofshareholders/investors.
Ø Management Goal Corrections
Pursuant to the share combination, the management goal will be corrected
as follows. We shall strengthen our management foundation and implement
growth strategies so that the following two numerical targets will be stably
realized after April 2006 (12 months later).
Consolidated ordinary profits 100 billion yen
Dividend per share
20 yenThis material is an English translation of a Japanese announcement made on March 28, 2005. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy and correctness of thistranslation are not guaranteed and thus you are encouraged to refer to the original Japanese document.