Daiwa Securities Group Annual Report 2012 <Overview of Performance in Each Business Segment> [Retail Division] Although the domestic stock market picked up at the end of the  fiscal year, as individual investors began moving money back into  stocks, the general tone of equity prices remained weak for most of  the year. Brokerage commissions declined, contributing to a 3.9%  drop in net operating revenues, to ¥172.0 billion. Ordinary income  fell 7.2% year on year, to ¥38.8 billion. The Group implemented an aggressive plan to improve profitability  in this Division, downsizing or selling off unprofitable businesses.  However, a host of adverse factors from the European debt crisis  and a global economic slowdown to the strong yen greatly curtailed  opportunities to generate income over the course of the year.  Although both domestic and overseas markets showed signs of  improvement as the fiscal year drew to a close, net operating  revenues fell 15.4% year on year, to ¥52.0 billion. The division  posted a ¥54.4 billion ordinary loss. This Division managed to win the lead manager role for KDDI’s  convertible bond issue—the largest euro-yen CB issue of the year,  and also experienced some improvement in the European M&A  business. However, there were very few major equity underwriting  deals during the period, and net operating revenues declined  13.6% year on year, to ¥26.5 billion. The division posted an ordinary  loss of ¥14.3 billion. The European debt crisis, the strong yen and other adverse factors  depressed investment sentiment for the industry as a whole. How- ever, the broad assortment of products and services offered, cou- pled with the Group’s expansive sales channels allowed the Asset  [Global Investment Banking Division] [Asset Management Division] [Global Markets Division] Segment Information Note: Individual balance of assets figures for each segment are not available. Millions of yen Net Operating Revenues Ordinary Income FY2010 FY2011 YoY FY2010 FY2011 YoY Retail ¥178,971  ¥172,033  –3.9% ¥ 41,867  ¥ 38,839  –7.2% Global Markets 61,496  52,015  –15.4% (52,174) (54,433) — Global Investment Banking 30,635  26,473  –13.6% (14,733) (14,284) — Asset Management 36,324  37,424  3.0% 15,949  14,615  –8.4% Investment (15,278) 1,090  — (21,477) (1,977) — Others 19,393  32,503  67.6% (8,140) (1,191) — Total before adjustment 311,541  321,538  3.2% (38,708) (18,431) — Adjustment 7,024 14,478  106.1% 6,106  6,231  2.0% Consolidated total ¥318,565  ¥336,016  5.5% ¥(32,602) ¥(12,200) — Note: Quarterly figures have not been audited by an independent auditor. 57 -20 0 20 40 60 80 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2010 FY2011 (¥ billion)  Retail   Global Markets   Global Investment Banking  Asset Management   Investment Breakdown of Net Operating Revenues by Segment