April 25, 2024

Daiwa Securities Group Inc.

Report Regarding Consolidated Capital Adequacy Ratio
and Consolidated Leverage Ratio
Situation of Soundness in Management as of December 31, 2023

In accordance with the Financial Instruments and Exchange Act Article 57-17, “Notification, etc., ofDocuments Describing Status of Soundness in Management”, Daiwa Securities Group Inc. reports thesituation of soundness in management as of December 31, 2023.

1

Table of Contents
Table of Contents ........................................................................................................................................................................ 2
Key Metrics (at consolidated group level) ............................................................................................................................ 3
Composition of Capital Disclosure ....................................................................................................................................... 4
Qualitative Disclosure (Consolidated) .................................................................................................................................. 7
1. Reconciliation of regulatory capital to balance sheet ..................................................................................... 7
Overview of Main Features of Regulatory Capital Instruments ........................................................................................ 9
Quantitative Disclosure (Consolidated).............................................................................................................................. 23
1. Other quantitative disclosures ......................................................................................................................... 23
Consolidated Leverage Ratio.............................................................................................................................................. 25
1. Composition of consolidated leverage ratio.................................................................................................... 25
2. Reasons for significant differences in the consolidated leverage ratio over previous quarter ............. 252

Key Metrics (at consolidated group level)
KM1: Key metrics(Millions of yen , %)Basel III
template
numberDecember 2023 September 2023

June 2023

March 2023

December 2022

Available capital (amounts)
1

Common Equity Tier 1(CET1)

1,299,914

1,308,028

1,305,377

1,240,674

1,250,943

2

Tier 1

1,489,647

1,495,881

1,491,860

1,429,860

1,440,247

3

Total capital

1,498,996

1,502,097

1,495,580

1,439,174

1,449,613

6,691,815

6,789,921

6,931,589

6,808,704

6,811,728

Risk-weighted assets (amounts)
4

Total risk-weighted assets(RWA)

Capital ratio
5

CET1 ratio (%)

19.42%

19.26%

18.83%

18.22%

18.36%

6

Tier 1 ratio (%)

22.26%

22.03%

21.52%

21.00%

21.14%

7

Total capital ratio (%)

22.40%

22.12%

21.57%

21.13%

21.28%

Additional CET1 buffer requirements as a percentage of RWA

8

Capital conservation buffer
requirement (2.5% from 2019)
(%)

2.50%

2.50%

2.50%

2.50%

2.50%

9

Countercyclical buffer
requirement (%)

0.08%

0.08%

0.05%

0.04%

0.02%

10

Bank G-SIB and/or D-SIB
additional requirements (%)

0.50%

0.50%

0.50%

0.50%

0.50%

11

Total of bank CET1 specificbuffer requirements (%)(row 8 + row 9 + row 10)

3.08%

3.08%

3.05%

3.04%

3.02%

12

CET1 available after meetingthe bank’s minimum capitalrequirements (%)

14.40%

14.12%

13.57%

13.13%

13.28%

Leverage ratio
13

Total leverage ratio exposure
measure24,439,442

27,268,928

26,077,120

22,195,226

21,947,493

14

Leverage ratio (%) including
the impact of any
applicable temporary
exemption of central bankreserves

6.09%

5.48%

5.72%

6.44%

6.56%

3

Composition of Capital Disclosure
CC1: Composition of regulatory capital(Millions of yen , %)Basel III
template
numberGroup
Consolidated
Quarter-End

Items

Common Equity Tier 1 capital: Instruments and reserves

Cross-referenced to
CC2

(1)

1,293,273

1a+2-1c-26 Shareholders' equity
1aCommon stock and capital surplus

478,551(i),(j)2

Retained earnings

921,853(k)

1cTreasury stock (Δ)

107,131(l),(m)26

Planned distributions (Δ)-

Others1b

Stock subscription rights

3

Accumulated other comprehensive income (and other reserves)

5

Minority interest after adjustments

6

Common Equity Tier 1 capital before regulatory adjustments(a)Common Equity Tier 1 capital: regulatory adjustments
8+9

7,678

(p)

166,538(o)1,467,490(2)

165,227

Intangible assets other than mortgage-servicing rights (net of related tax liability)

8

Goodwill (net of related tax liability)

52,889(e),(g)9Other intangibles other than mortgage-servicing rights(net of related tax liability)

112,338(f)

10

Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of
related tax liability)

11

Cash-flow hedge reserve

12

Shortfall of allowance to expected losses

13

Securitization gain on sale (as set out in paragraph 562 of Basel II framework)

14

Gains and losses due to changes in own credit risk on fair valued liabilities

15

Defined-benefit pension fund net assets

16

Investments in own shares (if not already netted off paid-in capital on reported balance sheet)

17

Reciprocal cross-holdings in common equity

18
19+20+21216(d),(h)

1,287

(n)

660
184
-

(b)

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued
share capital (amount above 10% threshold)-(a),(b),(c),(g)Amount exceeding the 10% threshold-

19

Significant investments in the common stock of banking, financial and insurance entities that areoutside the scope of regulatory consolidation, net of eligible short positions (amount above 10%threshold)-

20

Mortgage servicing rights (amount above 10% threshold)-21

Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related
tax liability)-

23

of which: significant investments in the common stock of financials-

24of which: mortgage servicing rights-

25

of which: deferred tax assets arising from temporary differences-

22

Amount exceeding the 15% threshold

27

Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 tocover deductions

28

Total regulatory adjustments to Common equity Tier 1-(b)167,575(c)

1,299,914

Common Equity Tier 1 capital
29

Common Equity Tier 1 capital (CET1) ((a) - (b))

4

(Millions of yen , %)Basel III
template
numberGroup
Consolidated
Quarter-End

Items

Additional Tier 1 capital: instruments
30

31a

Shareholders' equity

31b

Stock subscription rights

32

Liabilities

Cross-referenced to
CC2

(3)

-

Instruments issued by Special Purpose Companies

150,000-

34-35

Minority interest after adjustments

39,732

33+35

Tier 1 capital under Basel II included in Additional Tier 1 capital under transitional Basel III rules-

33

Capital instruments issued by Daiwa Securities Group Inc. and its Special Purpose Companies-

35

Capital instruments issued by consolidated subsidiaries and affiliates (excluding Special Purpose
Companies of Daiwa Securities Group Inc.)-

36

Additional Tier 1 capital before regulatory adjustments

(d)

(q)

189,732

Additional Tier 1 capital: regulatory adjustments
37

Investments in own Additional Tier 1 instruments-

38

Reciprocal cross-holdings in Additional Tier 1 instruments-

39

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above 10% threshold)-40

Significant investments in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation (net of eligible short positions)-42

Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions-

43

Total regulatory adjustments to Additional Tier 1 capital

(e)

-

(f)

189,732(g)

1,489,647(a),(b),(c),(g)Additional Tier 1 capital
44

Additional Tier 1 capital ((d) - (e))

Tier 1 capital
45

Tier 1 capital ((c) + (f))

Tier 2 capital: instruments and allowance

46

(4)

Shareholders' equity-

Stock subscription rights-

Liabilities-

Capital instruments issued by Special Purpose Companies

9,348

48-49

Minority interest after adjustments

47+49

Tier 2 capital under Basel II included in Tier 2 capital under transitional Basel III rules-

47

Capital instruments issued by Daiwa Securities Group Inc. and its Special Purpose Companies-

49

Capital instruments issued by consolidated subsidiaries and affiliates (excluding Special Purpose
Companies of Daiwa Securities Group Inc.)

-

50
50a

General allowance

50b

Eligible allowance

51-

General allowance included and eligible allowance in Tier 2 capital-

Tier 2 capital before regulatory adjustments

(h)

5

9,348

(q)

(Millions of yen , %)Basel III
template
numberGroup
Consolidated
Quarter-End

Items

Cross-referenced to
CC2Tier 2 capital: regulatory adjustments
52

Investments in own Tier 2 instruments-

53

Reciprocal cross-holdings in Tier 2 instruments and other TLAC liabilities-

54

Investments in the capital and other TLAC liabilities of banking, financial and insurance entities that areoutside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above 10% threshold)-54a

Investments in the other TLAC liabilities of banking, financial and insurance entities that are outside thescope of regulatory consolidation and where the bank does not own more than 10% of the issued commonshare capital of the entity: amount previously designated for the 5% threshold but that no longer meets theconditions-

55

Significant investments in the capital and other TLAC liabilities of banking, financial and insurance entities
that are outside the scope of regulatory consolidation (net of eligible short positions)-57

Total regulatory adjustments to Tier 2 capital(i)-Tier 2 capital ((h) - (i))

(j)

9,348

(k)

1,498,996(a),(b),(c),(g)Tier 2 capital
58
Total capital
59

Total capital ((g) + (j))

Risk-weighted assets
60(5)Total risk-weighted assets(l)6,691,815

Consolidated capital adequacy ratio
61

Common Equity Tier 1 (as a percentage of risk-weighted assets) ((c) / (l))

19.42%

62

Tier 1 (as a percentage of risk-weighted assets)

22.26%

63

Total capital (as a percentage of risk-weighted assets) ((k) / (l))

22.40%

64

CET1 specific buffer requirement

3.08%((g) / (l))

65

of which: capital conservation buffer requirement

2.50%

66

of which: countercyclical buffer requirement

0.08%

67
68

0.50%

of which: G-SIB/D-SIB additional requirement

14.40%

CET1 available after meeting the minimum capital requirements

Amounts below the thresholds for deduction (before risk weighting)(6)

128,197
95,27472

Non-significant investments in the capital of other financials

73

Significant investments in the common stock of financials

74

Mortgage servicing rights (net of related tax liability)

75

Deferred tax assets arising from temporary differences (net of related tax liability)(a),(b),(c),(g)(a),(b),(c),(g)-Applicable caps on the inclusion of allowance in Tier 2

4,817
(7)

76

Provisions eligible for inclusion in Tier 2 in respect of exposures subject to Standardized approach (prior toapplication of cap)-77

Cap on inclusion of allowance in Tier 2 under Standardized approach-

78

Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach(prior to application of cap)-

79

Cap for inclusion of allowance in Tier 2 under internal ratings-based approach-

Capital instruments subject to phase out arrangements

(8)

82

Current cap on AT1 instruments subject to Phase out arrangements-

83

Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)

84

Current cap on T2 instruments subject to Phase out arrangements-

85

Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)-

6(d),(h)Qualitative Disclosure (Consolidated)
1.

Reconciliation of regulatory capital to balance sheet
CC2：Reconciliation of regulatory capital to balance sheet(Millions of yen)
Balance sheets as inpublished statements

Under regulatory scope of
consolidation

Cross-referenced to CC1

AssetsCurrent assets
Cash and deposits

4,576,632

4,577,768

511,475

511,475

Cash segregated as deposits
Notes and accounts receivable-trade

23,71923,719

Short-term investment securities(a)1,287,118

1,287,118

8, 18, 39, 54, 72, 73

Trading products(b)7,194,280

7,194,280

16, 18, 39, 54,
72, 73

Trading date accrual
Operational investment securities(c)

141,562

141,562

(12)

(12)

2,674,649

2,674,649

Allowance for investment loss
Operating loans-

Work in process

1,508

1,508

Margin transaction assets

155,368

155,368

Loans secured by securities

12,526,343

12,526,343

Advances paid

28,70028,700

Short-term loans receivable

1,262

1,262

Accrued income

82,65282,75218, 39, 54, 72, 73

Deferred tax assets

(d)

-

-

Other current assets

960,875

961,245

Allowance for doubtful accounts(9,369)(9,369)30,156,766

30,158,372

Property, plant and equipment

922,084

922,130

Intangible assets

130,929

130,986

Total current assets

10, 75

Noncurrent assets

Goodwill(e)

19,69019,6908

Others(f)

111,239

111,2969524,566

524,216

Investments and other assets
Investment securities(g)478,826

478,4438, 18, 39, 54, 72, 73

Deferred tax assets

(h)

5,032

5,032

10, 7540,70840,739OthersTotal noncurrent assets

1,577,580

Total deferred charges
Total assets

1,577,334-

31,734,346

7

31,735,706

(Millions of yen)
Balance sheets as inpublished statements

Under regulatory scope of
consolidation

Cross-referenced to CC1

Liabilities
Current liabilities
Notes and accounts payable-trade

7,508

7,508

6,151,836
350,920

6,151,836
350,920

44,55444,554Loans payable secured by securities

12,080,308

12,080,308

Deposits from banking business

4,510,355

4,510,355

Deposits received

626,817626,820

Guarantee deposits received

496,014496,014

Short-term loans payable

Trading products
Trading date accrual
Margin transaction liabilities

1,245,013

1,245,713

Commercial paper

632,500

632,500

Current portion of bonds

205,374

205,374

Income taxes payable

23,50823,508Deferred tax liabilities--

Provision for bonuses

23,652

23,652Other current liabilities

104,488

104,736

Bonds payable

1,283,856

1,283,856

Long-term loans payable

2,073,638

2,073,638

Deferred tax liabilities

43,75443,754

Net defined benefit liabilities

44,08044,080

Provision for loss on litigation

238

238
-

-

Noncurrent liabilities

Negative goodwill
Other noncurrent liabilities

52,924

Reserves under the special laws

4,294

4,294

30,005,640

30,006,739

Total liabilities

53,071

Net assets
Shareholders' equity
Common stock(i)

247,397

247,397

1a

Capital surplus(j)231,153

231,153

1a

Retained earnings(k)921,843

921,846

2

Treasury stock(l)(107,193)(107,193)

1c

Advances on subscription of treasury stock

(m)

1c

Total shareholders' equity

61

61

1,293,263

1,293,266

46,963

46,963

9,812

9,812

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(n)Foreign currency translation adjustment

11

109,632

109,768

Total accumulated other comprehensive income(o)166,407

166,543

3

Subscription rights to shares

(p)

7,678

7,678

1b

Minority interests(q)261,356

261,475

34-35, 48-49

1,728,706

1,728,966

Total net assets

8Overview of Main Features of Regulatory Capital Instruments
CCA：Main features of regulatory capital instruments
1

IssuerDaiwa Securities Group Inc.

2

Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for private placement)

3

Governing law(s) of the instrument

3a

Other TLAC-eligible instruments governed by foreign law

NAJapanese Law－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

7

Instrument type (types to be specified by each jurisdiction)

Common stock

8

Amount recognized in regulatory capital (Currency in millions, as of the mostrecent reporting date)
Consolidated Capital Adequacy Ratio

1,293,273 million Yen－

9Par value of instrument

10

Accounting classification

11

Original date of issuance－

12

Perpetual or dated

NA

Consolidated balance sheets

13

Shareholders' equity－

Original maturity date

14

Issuer call subject to prior supervisory approval

NA

15

Optional call date and redemption amount－Contingent call dates and redemption amount－

Subsequent call dates, if applicable－

16

Coupons / dividends
17

Fixed or floating dividend/coupon

Floating

18

Coupon rate and any related index－

19

Existence of a dividend stopper

20

Fully discretionary, partially discretionary or mandatory

21

Existence of step up or other incentive to redeem

NA22

Noncumulative or cumulative

NA

23

NA
Fully discretionary

Convertible or non-convertibleNA

24

If convertible, conversion trigger(s)－25

If convertible, fully or partially－26

If convertible, conversion rate－

27

If convertible, mandatory or optional conversion－

28

If convertible, specify instrument type convertible into－29

If convertible, specify issuer of instrument it converts into－

30

Write-down featureNA31

If write-down, write-down trigger(s)－32

If write-down, full or partial

－

33
34
34a

If write-down, permanent or temporary
If temporary write-down, description of write-up mechanism
Type of subordination

－
－
－

35

Position in subordination hierarchy in liquidation (specify instrument type
immediately senior to instrument)

36
37

Non-compliant transitioned features
If yes, specify non-compliant features

Perpetual Subordinated Bonds
NA－

9

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in Stock subscription right issued inJuly 2006
July 2007

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

53 million Yen

69 million Yen－－

Stock subscription right

Stock subscription right

July 1, 2006

July 1, 2007

12 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

10

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in Stock subscription right issued inJuly 2008
July 2009

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

76 million Yen

136 million Yen－－

Stock subscription right

Stock subscription right

July 1, 2008

July 1, 200912 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

11

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in Stock subscription right issued inJuly 2010
July 2011

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

198 million Yen

284 million Yen－－

Stock subscription right

Stock subscription right

July 1, 2010

July 1, 201112 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

12

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in Stock subscription right issued in
February 2013
February 2014

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

362 million Yen

304 million Yen－－

Stock subscription right

Stock subscription right

February 12, 2013

February 10, 201412 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

13

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in
Stock subscription right series 11
February 2015

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

342 million Yen

858 million Yen－－

Stock subscription right

Stock subscription right

February 9, 2015

February 9, 2015

12 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

14

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in
Stock subscription right series 12
February 2016

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

351 million Yen

338 million Yen－－

Stock subscription right

Stock subscription right

February 16, 2016

February 16, 2016

12 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

15

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in
Stock subscription right series 13
February 2017

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

380 million Yen

664 million Yen－－

Stock subscription right

Stock subscription right

February 8, 2017

February 8, 201712 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

16

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right issued in
Stock subscription right series 14
February 2018

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

416 million Yen

748 million Yen－－

Stock subscription right

Stock subscription right

February 8, 2018

February 8, 201812 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

17

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right series 15 Stock subscription right series 16

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

523 million Yen

413 million Yen－－

Stock subscription right

Stock subscription rightAugust 10, 2018

August 15, 201912 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

18

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right series 17 Stock subscription right series 18

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

414 million Yen

237 million Yen－－

Stock subscription right

Stock subscription rightAugust 17, 2020

August 13, 2021

12 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

19

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

NA

NA

Japanese Law

Japanese Law－－

Regulatory treatment
4

Transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital5

Post-transitional Basel III rules

Common Equity Tier 1 capital

Common Equity Tier 1 capital

6

Eligible at solo/group/group&solo

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

7 Instrument type (types to be specified by each jurisdiction)
8

Stock subscription right series 19 Stock subscription right series 20

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio

319 million Yen

183 million Yen－－

Stock subscription right

Stock subscription rightAugust 15, 2022

August 15, 2023

12 Perpetual or dated

NA

NA

13

－

－

14 Issuer call subject to prior supervisory approval

NA

NA

15

Optional call date and redemption amount－－Contingent call dates and redemption amount－－

Subsequent call dates, if applicable－－

Floating

Floating

9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance

16

Original maturity date

Coupons / dividends
17

Fixed or floating dividend/coupon

18

Coupon rate and any related index

－

－

19

Existence of a dividend stopper

NA

NA

20

Fully discretionary, partially discretionary or mandatory

Fully discretionary

Fully discretionary

21

Existence of step up or other incentive to redeem

NA

NA

22

Noncumulative or cumulativeNA

NA

23 Convertible or non-convertible

NA

NA

24

If convertible, conversion trigger(s)

－

－

25

If convertible, fully or partially

－

－

26

If convertible, conversion rate

－

－

27

If convertible, mandatory or optional conversion

－

－

28

If convertible, specify instrument type convertible into

－

－

29

If convertible, specify issuer of instrument it converts into－－

30 Write-down feature

NA

NA

31

If write-down, write-down trigger(s)

－

－

32

If write-down, full or partial

－

－

33

If write-down, permanent or temporary

－

－

34

If temporary write-down, description of write-up mechanism

－

－

34a

Type of subordination

－

－

35

Position in subordination hierarchy in liquidation (specify
instrument type immediately senior to instrument)

Perpetual Subordinated Bonds

Perpetual Subordinated Bonds

36

Non-compliant transitioned features

NA

NA

37

If yes, specify non-compliant features

－

－

20

1 Issuer
2 Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law
Regulatory treatment

Daiwa Office Investment Corporation

Samty Residential Investment Corporation

NA

NA

Japanese Law

Japanese Law

－

－

4

Transitional Basel III rules

Additional Tier 1 capital
Tier 2 capital

Additional Tier 1 capital
Tier 2 capital5

Post-transitional Basel III rules

Additional Tier 1 capital
Tier 2 capital

Additional Tier 1 capital
Tier 2 capital

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.

Common stock

Common stock

Additional Tier 1 capital
30,491 million Yen
Tier 2 capital
7,174 million Yen－

Additional Tier 1 capital
9,241 million Yen
Tier 2 capital
2,174 million Yen－

6
Eligible at solo/group/group&solo
7 Instrument type (types to be specified by each jurisdiction)
Amount recognized in regulatory capital (Currency in8millions, as of the most recent reporting date)
Consolidated Capital Adequacy Ratio

9 Par value of instrument
10 Accounting classification
Non-controlling interest
Consolidated balance sheets－
11 Original date of issuanceNA
12 Perpetual or dated－
13
Original maturity dateNA
14 Issuer call subject to prior supervisory approval－
15
Optional call date and redemption amount－Contingent call dates and redemption amount－16
Subsequent call dates, if applicable
Coupons / dividends
Floating
17
Fixed or floating dividend/coupon－
18
Coupon rate and any related index
NA
19
Existence of a dividend stopper
Fully discretionary
20
Fully discretionary, partially discretionary or mandatory
NA
21
Existence of step up or other incentive to redeem
NA22
Noncumulative or cumulativeNA
23 Convertible or non-convertible－
24
If convertible, conversion trigger(s)－25
If convertible, fully or partially－26
If convertible, conversion rate－
27
If convertible, mandatory or optional conversion－
28
If convertible, specify instrument type convertible into－29
If convertible, specify issuer of instrument it converts intoNA
30 Write-down feature－31
If write-down, write-down trigger(s)－32
If write-down, full or partial－
33
If write-down, permanent or temporary－
34
If temporary write-down, description of write-up mechanism－
34a Type of subordination
Position in subordination hierarchy in liquidation (specify
Perpetual Subordinated Bonds
35
instrument type immediately senior to instrument)NA36
Non-compliant transitioned features－
37
If yes, specify non-compliant features21

Non-controlling interest
－
NA
－
NA
－
－
－
Floating－
NA
Fully discretionary
NA
NA
NA
－
－
－
－
－
－
NA
－
－
－
－
－
Perpetual Subordinated Bonds
NA－

1 Issuer
Unique identifier (e.g., CUSIP, ISIN or Bloomberg identifier for
2
private placement)
3 Governing law(s) of the instrument
3a Other TLAC-eligible instruments governed by foreign law
Regulatory treatment
4
Transitional Basel III rules
5
Post-transitional Basel III rules
6
Eligible at solo/group/group&solo

7 Instrument type (types to be specified by each jurisdiction)

Amount recognized in regulatory capital (Currency in millions, as ofthe most recent reporting date)
Consolidated Capital Adequacy Ratio
9 Par value of instrument
10 Accounting classification
Consolidated balance sheets
11 Original date of issuance
12 Perpetual or dated
13
Original maturity date
14 Issuer call subject to prior supervisory approval
15
Optional call date and redemption amountContingent call dates and redemption amountDaiwa Securities Group Inc.

Daiwa Securities Group Inc.

JP350220AL30

JP350220BL39

Japanese Law－

Japanese Law－

Additional Tier 1 capital
Additional Tier 1 capital
Daiwa Securities Group Inc.
Daiwa Securities Group Inc. firstseries of unsecured perpetual
subordinated bonds with optionalredemption clause and write-downclauseAdditional Tier 1 capital
Additional Tier 1 capital
Daiwa Securities Group Inc.
Daiwa Securities Group Inc. second
series of unsecured perpetual
subordinated bonds with optionalredemption clause and write-downclause125,000 million Yen
125,000 million Yen

25,000 million Yen
25,000 million Yen

Liabilities
March 16, 2020
NA－
YES
June 5, 2025 at parTax event or Regulatory event at par
Each interest payment date after firstcall date

Liabilities
March 16, 2020
NA－
YES
June 5, 2030 at parTax event or Regulatory event at par
Each interest payment date after firstcall date8

16

Subsequent call dates, if applicable

17

Coupons / dividends
Fixed or floating dividend/coupon

18

Coupon rate and any related index

19
Existence of a dividend stopper
20
Fully discretionary, partially discretionary or mandatory
21
Existence of step up or other incentive to redeem
22Noncumulative or cumulative
23 Convertible or non-convertible
24
If convertible, conversion trigger(s)25
If convertible, fully or partially26
If convertible, conversion rate
27
If convertible, mandatory or optional conversion
28
If convertible, specify instrument type convertible into29
If convertible, specify issuer of instrument it converts into
30 Write-down feature31

If write-down, write-down trigger(s)32
33

If write-down, full or partial
If write-down, permanent or temporary

34

If temporary write-down, description of write-up mechanism

34a

Type of subordination
Position in subordination hierarchy in liquidation (specify instrument
type immediately senior to instrument)
Non-compliant transitioned features
If yes, specify non-compliant features

35
36
37

Fixed to floating
Fixed to floating
From the day immediately following From the day immediately following
March 16, 2020 until June 5, 2025 :March 16, 2020 until June 5, 2030 :
1.20％ per annum From the day
1.39％ per annum From the day
immediately following June 5, 2025 : immediately following June 5, 2030 :6-month euro-yen LIBOR＋1.40％
6-month euro-yen LIBOR＋1.50％
YES
YES
Fully discretionary
Fully discretionary
NA
NA
NA
NA
NA
NA
－
－
－
－
－
－
－
－
－
－
－
－
YES
YES
Events(1), (2) or (3) below:
Events(1), (2) or (3) below:(1)When the Company’s consolidated (1)When the Company’s consolidated
Common Equity Tier1 capital ratio
Common Equity Tier1 capital ratio
falls below 5.125%.
falls below 5.125%.
(2)When the principal amount of and (2)When the principal amount of andinterest on the bonds shall be written interest on the bonds shall be written
down to zero when it is confirmed that down to zero when it is confirmed thatthe “specified item 2 measures”.
the “specified item 2 measures”.
(3)When the Company becomes(3)When the Company becomessubject to bankruptcy and othersubject to bankruptcy and other
insolvency proceedings.
insolvency proceedings.
Full or Partial
Full or Partial
TemporaryTemporary
When the Company determines that the When the Company determines that the
principal amount of the bonds that have principal amount of the bonds that havebeen written-down be reinstated after been written-down be reinstated after
prior confirmation of the Financial
prior confirmation of the Financial
Services Agency of Japan and any
Services Agency of Japan and anyother relevant Japanese governmental other relevant Japanese governmentalorganizations that the Company’sorganizations that the Company’s
consolidated Common Equity Tier1
consolidated Common Equity Tier1
capital ratio remains at a sufficiently capital ratio remains at a sufficiently
high level immediately after giving
high level immediately after giving
effect to the relevant reinstatement of effect to the relevant reinstatement of
the bonds.
the bonds.
Contractual
Contractual

22

Debts

Debts

NA
－

NA
－

Quantitative Disclosure (Consolidated)

1. Other quantitative disclosures
OV1：Overview of RWA
RWA

Basel III
template
number1(Millions of yen)
Minimum capitalrequirements
December September
2023
2023

Credit risk (excluding counterparty credit risk) (CCR)

December
2023

September
2023

2,366,320

2,384,652

189,305

190,772

1,209,450

1,189,539

96,756

95,163

2

Of which standardized approach (SA)3

Of which internal rating-based (IRB) approach

-

-

-

-

Of which significant investments

-

-

-

-

Of which exposures for estimated residual value of lease

-

-

-

-

1,156,870

1,195,113

92,54995,6091,339,223

1,408,430

107,137

112,674

439,400

490,499

35,152

39,239Others
4

Counterparty credit risk5

Of which standardized approach for counterparty credit risk (SA-CCR)

6

Of which internal model method (IMM)

-

-

-

-

Of which credit valuation adjustment (CVA) risk

467,060

505,769

37,364

40,461

Of which exposures to central counterparties (CCPs)

31,10836,842

2,488

2,947

Others401,653

375,319

32,13230,025

-

-

-

-

7

Equity positions under market-based approach

8

Equity investments in funds (look-through approach)

300,111304,101

24,00824,3289Equity investments in funds (mandate-based approach)10

60,09843,189

4,807

3,455

Equity investments in funds (subject to 250% risk weight)

-

-

-

-

Equity investments in funds (subject to 400% risk weight)

-

-

-

-

8,393

8,400

671

672

787

254

62

20

176,800

182,457

14,144

14,596----

176,800

182,457

14,144

14,596----Equity investments in funds (fall-back approach)11

Settlement risk

12

Securitization exposures in banking book13

Of which internal ratings-based approach (SEC-IRBA) or internal
assessment approach (IAA)

14

Of which external ratings-based approach (SEC-ERBA)

15

Of which standardized approach (SEC-SA)
Of which 1250% risk weight applied

16
17
18
19

Market risk
Of which standardized approach (SA)Of which internal model approaches (IMM)
Operational risk

-

-

-

-

1,084,345

1,111,238

86,74788,899750,983

779,860

60,07862,388333,362

331,377

26,66926,5101,105,187

1,105,187

88,41588,415

1,105,187

1,105,187

88,41588,41520

Of which basic indicator approach21

Of which standardized approach

-

-

-

-

22

Of which advanced measurement approach

-

-

-

-

Amounts below the thresholds for deduction (subject to 250% risk weight)

250,546

242,008

20,04319,360

Amounts included in risk weighted asset due to transitional arrangements

-

-

-

-

23

24
25

Floor adjustment
Total

23

-

-

-

-

6,691,815

6,789,921

535,345

543,193

MR2：RWA flow statements of market risk exposures under an IMA(Millions of yen)Stressed
VaR

VaR

1a RWA at previous quarter-end
Adjustments to RWA based on the
1b regulatory consolidated capital atprevious quarter-end
1c

Amounts of IMA at previous quarterend

IRC

CRM

Other

Total RWA

99,911

231,465--

331,377

2.34

2.69

-

-

2.58

42,51885,807--

128,325

2

Movement in risk levels(11,464)(5,053)--(16,517)3

Model updates/changes

-

-

-

-

-

4 Change in Methodology and policy
reporting
5 period
Acquisitions and disposals

-

-

-

-

-

-

-

-

-

-

6

Foreign exchange movements

-

-

-

-

-

7

Other

-

-

-

-

-

31,05480,753--111,808

4.22

2.50

-

-

2.98

131,173

202,189--

333,362

Amounts of IMA at end of reporting
periodAdjustments to RWA based on the
8b regulatory consolidated capital at end ofreporting period
8a8c RWA at end of reporting period24Consolidated Leverage Ratio
1.

Composition of consolidated leverage ratio(Millions of yen , %)Basel III
template
number (2)Basel III
template
number (1)Items

December 2023 September 2023

On-balance sheet exposures1(1)
On-balance sheet items before adjustments

12,697,167

15,773,600

1Total assets in the consolidated balance sheet

27,909,394

29,775,677

1b

2

Total assets held by group companies which are not included in thescope of the consolidated leverage ratio

-

-

1c

7

Total assets held by group companies which are included in the scopeof the consolidated leverage ratio (except for the assets included in the
total assets in the consolidated balance sheet)

1,360

1,104

1d

3

Assets other than the adjustments that are excluded from the total assets
in the consolidated balance sheet

15,213,587

14,003,181

7

Tier 1 capital: regulatory adjustments

1a2

165,628

177,281

12,531,539

15,596,319

4

Replacement cost associated with all derivatives transactions (with the
1.4 alpha factor applied)

670,628

1,105,7775

Add-on amounts for PFE associated with all derivatives transactions(with the 1.4 alpha factor applied)

595,449

790,498

6

Gross-up for derivatives collateral provided where deducted from thebalance sheet assets pursuant to the operative accounting framework

-

-

7

Deductions of receivables assets for cash variation margin provided inderivatives transactions

17,007

34,968

8

Exempted CCP leg of client-cleared trade exposures

9

Adjusted effective notional amount of written credit derivatives

3,068,896

3,039,000

10Adjusted effective notional offsets and add-on deductions for written
credit derivatives

2,680,636

2,630,244

1,637,330

2,270,063

3

Total on-balance sheet exposures (excluding derivatives and SFTs)

Derivative exposures

11

(A)
(2)

4

Total derivative exposures(B)

Securities financing transaction exposures

(3)

12

Gross SFT assets (with no recognition of netting), after adjusting forsale accounting transactions

13,760,060

12,401,939

13

Netted amounts of cash payables and cash receivables of gross SFT assets

3,803,589

3,327,344

14

CCR exposure for SFT assets

200,846

211,029

15

Agent transaction exposures
10,157,317

9,285,624
166,72216

5

Total securities financing transaction exposures(C)

Other off-balance sheet exposures

(4)

17

Off-balance sheet exposure at gross notional amount

163,228

18

Adjustments for conversion to credit equivalent amounts

49,97249,800113,256

116,922

19

6

Off-balance sheet items(D)

Tier 1 capital(E)

1,489,647

1,495,881

Total exposures (A)+(B)+(C)+(D)(F)

24,439,442

27,268,928

6.09%

5.48%

24,439,442

27,268,928

Capital and total exposures
20
21
22

8

(5)

Leverage ratio on a consolidated basis (E) / (F)Leverage ratio (including amount of the central bank reserves)(6)

Total exposures(F)

Amount of the central bank reserves
Total exposures (including amount of the central bank reserves)
Leverage ratio (including amount of the central bank reserves) (E) / (F')

2.

(F')

3,824,952

3,648,989

28,264,394

30,917,917

5.27%

4.83%

Reasons for significant differences in the consolidated leverage ratio over previous quarter
There was a significant difference in the consolidated leverage ratio over the previous quarter. The
reason of the difference is due to decrease of “Total exposures” by 2,829,486 million yen. Decrease in“Total exposures” is due to decrease in “Total on-balance sheet exposures” by 3,064,780 million yen.
25