Daiwa Securities Group Annual Report 2012 Yoriyuki Kusaki Deputy President Deputy Head of Retail Daiwa Securities Group Inc. In May 2011, with the launch of Daiwa Next Bank, the company  entered the banking business as a bank agent. In collaboration with  the bank, it launched the “Daiwa Twin Account,” which allows  seamless connection between a customer’s bank account at Daiwa  Next Bank and their brokerage account at Daiwa Securities, making  their fund allocation activities easier and more efficient. It also offers  good interest rates on deposits, providing both convenience and  enhanced services to help expand the customer base. As of the  end of March 2012, Daiwa Next Bank had attracted some 480,000  accounts with a balance of deposits exceeding ¥1,430 billion. The  bank turned a profit in the third fiscal quarter since the bank was  founded. Now that the company can offer various types of savings  accounts, in addition to the investment vehicles that have been its  forte in the past, Daiwa Securities will be able to attract a broader  range of customers to use the Daiwa Securities Group’s services.  The impact is already apparent; in FY2011 the company increased  the number of new accounts by 22% year on year, to 154,000, and  the net inflow of assets soared by 168% year on year, to ¥1,060 billion. Daiwa Securities not only offers customers opportunities to  generate a good return on their investments. The company has  also been focusing on so-called “impact investments” which make  a positive social contribution to the environment or to economically  disadvantaged groups. In  FY2011, the company  began selling “JICA  bonds,” the first retail  market-oriented bonds  issued by the Japan  International Cooperation  Agency (JICA). In addition,  it helped arrange “Green  Bonds,” which are issued  by the World Bank and  marketed mainly to  regional banks. 1Q 2Q 3Q 4Q 0 0.5 1.0 1.5 FY2011 (¥ trillion) Balance of Deposits at  Daiwa Next Bank Major “Impact Investment”-Type Products Marketed by Daiwa Securities in FY2011 * Based on TTM rate on date of issuance Issue Issuer Intended use of funds Currency Sales amount  (approx.)* Issue date Ecology Bond Nordic Investment Bank Funds projects aimed at improving the environment,  such as facilities to reduce air and water pollution S. African Rand ¥9.1 billion Nov. 2011 JICA Bond Japan International  Cooperation Agency Provides international yen loans to support developing countries Japanese Yen ¥13.0 billion Dec. 2011 Water Bond Asian Development Bank Funds water-related projects in the Asia-Pacific region Turkish Lira ¥21.6 billion Feb. 2012 23