Daiwa Securities Group Annual Report 2012 Capital requirements for market risk Capital adequacy ratio and Tier 1 capital ratio Total capital requirements Capital requirements for operational risk 4. Credit Risk Exposures (excluding exposures under IRB approach and securitization exposures) Exposures by geographical area, industry, and residual contractual maturity (Note 5) Including deposits, properties and equipments, intangible assets. (Unit: 100 Million Yen) Capital requirements Standardized Approach 533 Interest rate risk 410 Equity risk 107 Foreign exchange risk 16 Commodities risk 1 Option transactions – Internal Models Approach 278 Total capital requirements for market risk 811 Ratios Capital adequacy ratio 27.4% Tier 1 capital ratio 25.4% (Unit: 100 Million Yen) Capital requirements Credit risk 1,433 Market risk 811 Operational risk 599 Total capital requirements 2,844 (Unit: 100 Million Yen) Capital requirements Basic indicator approach 599 Standardized approach – Advanced measurement approach – Total capital requirements for operational risk 599 (Unit: 100 Million Yen) Credit risk exposures Past due exposures for  three months or more Loans Repo Derivatives Securities Others  (Note 5) Japan 130,053 913 49,540 43,034 17,894 18,671 8 Overseas 66,094 1 61,576 1,578 33 2,905 4 Total (by area) 196,146 914 111,117 44,612 17,926 21,577 12 Sovereign 25,682 – 7,709 486 11,285 6,201 0 Financial institutions 118,563 – 72,183 39,928 417 6,035 1 Corporates 39,991 227 31,224 4,197 2,754 1,589 11 Individuals 1,961 687 – 0 – 1,274 – Others 9,949 – – – 3,471 6,478 – Total (by industry) 196,146 914 111,117 44,612 17,926 21,577 12 ≦ 1year 103,588 756 98,608 1,125 117 2,983 > 1year ≦ 3years 2,097 1 – 1,301 794 – > 3year ≦ 5years 19,960 0 – 19,557 403 – > 5year ≦ 7years 28,742 – – 19,557 9,185 – > 7year 4,370 1 – 3,071 1,298 – Indeterminate 37,389 155 12,509 – 6,130 18,594 Total (by maturity) 196,146 914 111,117 44,612 17,926 21,577 101