Consolidated Statements of Operations DAIWA SECURITIES GROUP INC. Years ended March 31, 2012 and 2011 Daiwa Securities Group Annual Report 2012 Executive Messages Corporate Summary Business Strategy Management Systems & CSR Financial Section Other Information 62 Millions of yen Thousands of  U.S. dollars  (Note 1) 2012 2011 2012 Operating revenues: Commissions ¥220,845 ¥218,630 $2,693,232 Net gain on trading (Note 25) 79,416 92,477 968,488 Net gain (loss) on private equity and other investments 1,956 (17,259) 23,854 Interest and dividend income (Note 23) 79,762 71,916 972,707 Service fees and other revenues 40,396 37,278 492,634 422,375 403,042 5,150,915 Interest expense  (Note 23) 59,691 58,062 727,939 Cost of service fees and other revenues 26,668 26,415 325,220 Net operating revenues  (Note 22) 336,016 318,565 4,097,756 Selling, general and administrative expenses  (Notes 13 and 26) 359,729 363,920 4,386,939 Operating loss (23,713) (45,355) (289,183) Other income (expenses): Provision for statutory reserves, net (Note 15) 456 885 5,561 Other, net (Note 27) 6,383 9,945 77,841 6,839 10,830 83,402 Loss before income taxes and minority interests (16,874) (34,525) (205,781) Income taxes  (Note 14) : Current 7,453 6,907 90,890 Deferred 16,947 2,807 206,671 24,400 9,714 297,561 Loss before minority interests (41,274) (44,239) (503,342) Minority interests 1,839 6,907 22,427 Net loss ¥ (39,435) ¥ (37,332) $ (480,915) Yen U.S. dollars  (Note 1) Per share amounts: Net loss ¥(23.41) ¥(21.90) $(0.29) Diluted net income – – – Cash dividends applicable to the year 6.00 6.00 0.07 See accompanying notes.