Daiwa Securities Group Annual Report 2012 Corporate Summary Executive Messages Business Strategy Management Systems & CSR Financial Section Other Information Report Regarding Situation of Soundness in Management Qualitative Disclosure (Consolidated) 1. Scope of Consolidation A). Discrepancy in the scope of consolidation defined under consolidated financial statement reported and that for consolidated  capital adequacy ratio calculation. B). Number of consolidated subsidiaries, and company names and businesses of major consolidated subsidiaries. C). Number of affiliated companies engage in financial activities, company names, and core businesses of major affiliated companies  that engaged in financial activities under the provision of Article 9 of the Consolidated Capital Adequacy Ratio Notification  published by Japan FSA. D). Number of companies subject to the deduction, the names of major companies, and main businesses subject to the capital  deduction specified under the provision of Article 8 Paragraph 1 (ii), (a)-(c) of the Consolidated Capital Adequacy Ratio Notification  published by Japan FSA. E). Overview of the restrictions on the transfer of funds and regulatory capital within Group companies Not applicable. Number of consolidated subsidiaries: 60 companies No company is subject to proportionate consolidation methods. Number of companies subject to the deductions: 25 companies There is no specific restriction set forth regarding the transfer of funds and regulatory capital within Group companies. 94 (Note 1) Daiwa Securities Co. Ltd and Daiwa Securities Capital Markets Co. Ltd merged on April 1, 2012 as Daiwa Securities Co. Ltd. Company Name Business Daiwa Securities Co. Ltd. (Note 1) Securities related business Investment advisory and agency business Daiwa Securities Capital Markets Co. Ltd. (Note 1) Securities related business Daiwa Asset Management Co. Ltd. Investment management business Investment advisory and agency business Daiwa Institute of Research Holdings Ltd. Integration and management of subsidiaries Daiwa Institute of Research Ltd. Information Service Daiwa Securities Business Center Co. Ltd. Back office operation Daiwa Property Co., Ltd. Lending and borrowing of real estates Daiwa Corporate Investment Co., Ltd. Venture capital business Daiwa Institute of Research Business Innovation Information Service Daiwa Next Bank, Ltd. Banking business Daiwa Securities SMBC Principal Investments Co. Principal investment business Daiwa PI Partners Co. Ltd. Principal investment business Daiwa Real Estate Asset Management Co., Ltd. Investment management business Investment advisory and agency business Daiwa Office Investment Corporation Investment in specified assets Daiwa Capital Markets Europe Limited Securities related business Daiwa Capital Markets Asia Holding B.V. Integration and management of subsidiaries Daiwa Capital Markets Hong Kong Limited Securities related business Daiwa Capital Markets Singapore Limited Securities related business Daiwa Capital Markets America Holdings Inc. Integration and management of subsidiaries Daiwa Capital Markets America Inc. Securities related business Company Name Business Daiwa Asset Management (India) Private Limited Investment management and advisory business