Daiwa Securities Group Annual Report 2012 Corporate Summary Executive Messages Business Strategy Management Systems & CSR Financial Section Other Information Detail of business combinations and related matters for the year  ended March 31, 2012 are as follows. The business before the date of business combination (February 29,  2012 is considered to be the acquisition date) is reflected in the  investment profit under the equity method. 19. Business combinations and related matters Outline of the business combination Period of the acquired company’s financial results included in the  consolidated financial statements Acquisition cost of the acquired company Amount of assets and liabilities acquired on the day of the business combination and reconciliation between the acquisition cost of  investment units and the proceeds from purchase Millions of yen Thousands of U.S. dollars 2012 2012 Current assets ¥ 15,868 $ 193,512 Fixed assets 269,678 3,288,756 Current liabilities (43,685) (532,744) Fixed liabilities (80,190) (977,927) Minority interests (87,823) (1,071,012) Negative goodwill (35,266) (430,073) The acquisition cost of investment units 38,582 470,512 The investment by the equity method of accounting at consolidation (22,854) (278,707) Gains on step acquisition (2,118) (25,829) Acquisition of investment units by the exercise of a security interest (13,610) (165,976) Cash and equivalents held by Daiwa Office Investment Corporation (15,250) (185,976) Net: Proceeds from purchase 15,250 185,976 86 Fair value of investment units of Daiwa Office Investment Corporation  owned before business combination: ¥23,878 million ($291,195 thousand) Fair value of investment units of Daiwa Office Investment Corporation  additionally acquired at the date of business combination: ¥14,704 million ($179,317 thousand) Acquisition cost of the acquired company: ¥38,582 million ($470,512 thousand) Difference between acquisition cost of the acquired corporation  and total acquisition cost of individual transactions leading  to acquisition Negative goodwill and reason for recognizing negative goodwill Gains on step acquisitions:  ¥2,118 million ($25,829 thousand) (i) Amount of negative goodwill: ¥35,266 million ($430,073 thousand) (ii) Reason for recognizing negative goodwill The market price of the assets and liabilities of the acquired  corporation exceeds the acquisition cost. (i) Name of the acquired company and its business (ii) Main reasons for the business combination (iii) Date of business combination (iv) Legal form of the business combination (v) Ratio of voting rights the Group has acquired Ratio of voting rights owned before business acquisition: 28.27% Ratio of voting rights additionally acquired at the  date of business combination:  17.41% Ratio of voting rights after acquisition:  45.68% Daiwa Office Investment Corporation (Investment management  business to the specified assets) Daiwa PI Partners Co. Ltd., a consolidated subsidiary of the  Company, executed a loan agreement with K.K. Columbus and  provided a loan secured by 68,905 investment units (17.41% of  the total issued and outstanding investment units) issued by  Daiwa Office Investment Corporation and held by K.K.  Columbus. Daiwa PI Partners Co. Ltd. decided to foreclose the  security interest pursuant to the provision of the loan agreement  and acquired 68,905 units issued by Daiwa Office Investment  Corporation. The Company believes that it will be able to  enhance the value of the entire Group by supporting and real- izing the growth of Daiwa Office Investment Corporation by  making available the corporate resources of the Group. February 29, 2012 (deemed acquisition date) Acquisition of investment units of Daiwa Office Investment  Corporation