Translation of Japanese press release
March 26, 2010
Nikko Cordial Securities Inc.

Medium-Term Management Plan

With the future prospect of “becoming the No.1 general securities company in Japan which isexcellent both in quality and in quantity and globally competitive,” Nikko Cordial Securities Inc., amember of Sumitomo Mitsui Financial Group, has established the medium-term management
plan in order to become one of the leading general securities companies in Japan within three
years from April 2010.
The essence of the plan is as follows.
1. Management Targets(1) Basic Policy
1. Aiming at becoming one of the leading and solid general securities companies inJapan that can offer full-line services to customers and obtain their utmost confidencea)

Sustainable expansion of existing business centering on retail business・ Improving the operating structure to further expand our revenue base while
maintaining high productivity
・ Providing customers with a broad lineup of products and services throughintroduction or intermediation business of Sumitomo Mitsui Banking
Corporation (SMBC)
・ Aiming to drastically increase product sales and the net inflow of assets
through the expansion of primary deals in concert with the wholesale divisionb)

Creation of new business centering on the wholesale business・ Realizing business results by which the Company can demonstrate a solidpresence through maintenance and enhancement of relations with customers
for whom the Company worked as a lead-manager and enhancement of leadmanagement capabilities utilizing our partnership with SMBC
・ Increasing the number of skilled personnel and investing in systems in order
to expand new business, such as trading operations, overseas business andour partnership with SMBCc)

Improvement of the organizational structure of the head office in order toestablish risk management and compliance systems in response to full-line
business operations

2. Responding to society, the economy and markets in a more responsible manner as amajor financial institution in Japan and aiming at improving both our reliability andpresence
3. Establishing a growth strategy as a general securities company that conducts both
retail and wholesale business1（2）Numerical Targets
FY ending March 2010
3Q (annualized) *1

FY ending March 2013

(billions of yen)

Planned target(billions of yen)

Net operating revenue

181.4

300

- Retail business

167.4200- Wholesale business14.0100

37.9100

Ordinary income*1 The business results for the 3Q (October to December) of the fiscal year ending March 2010 are
quadrupled to show them on an annual basis.

2. Main Measures(1) Retail business・ Enhancement of efforts in business targeting wealthy individuals
・ Meeting the diversified needs of customers by enhancing our partnership with SMBC
・ Enhancement of efforts for primary deals(2) Wholesale business・ Establishment of the front system to achieve business results by which the Company
can demonstrate a solid presence
・ Increasing the number of skilled personnel and investing in systems in order to expand
new business, such as trading operations, overseas business and our partnership withSMBC(3) Active employment of personnel and enhancement of personnel development programs(increase in the number of employees by approximately 1,000 over the three years fromnow)(4) Increase in system investment (by more than approximately 50 billion yen over the threeyears from now)(5) Improvement of the organizational structure of the head office in response to full-line
business operations(6) Maintenance of low-cost operations based on IT, etc. (improvement of productivity of sales
activities)###2