Corporate Summary Business Strategy Management Systems & CSR Financial Section Other Information 102 Year-end balance of general and specific allowances for credit loss, and allowances to specific foreign obligations Exposure by risk weight after Credit Risk Mitigation (CRM) techniques Loan write-offs by industry Not applicable 5. Credit Risk Mitigation (CRM) Techniques Exposure for which CRM Techniques are applied (Unit: 100 Million Yen) Exposure amounts Cash 61,182 Debts 47,848 Equities 2,793 Mutual funds – Eligible Financial Collateral Total 111,823 Guarantees – Credit derivatives – Guarantees and Credit Derivatives Total – (Unit: 100 Million Yen) Exposure amounts Risk weight Application of  external rating Others 0% 15,411 511 14,900 10% 2,213 – 2,213 20% 18,870 18,671 200 35% 6 – 6 50% 2,592 2,592 0 75% – – – 100% 11,578 365 11,214 150% 15 2 13 Others 2,410 – 2,410 Capital deduction – – – Total 53,095 22,140 30,955 (Unit: 100 Million Yen) Geographic area Mar 31, 2012 Against Mar 31, 2011 General allowance – 2 (30) Specific allowance Japan 372 (54) Overseas 0 (0) Allowance to specific foreign obligations – – – Industry Mar 31, 2012 Against Mar 31, 2011 General allowance – 2 (30) Specific allowance Sovereign – – Financial institutions – – Corporates 10 3 Individuals 0 (0) Others 363 (57) Allowance to specific foreign obligations – – – Executive Messages Daiwa Securities Group Annual Report 2012