Daiwa Securities : Report Regarding Consolidated Liquidity Coverage Ratio and Consolidated Net Stable Funding Ratio Situation of Soundness in Liquidity Management as of

January 30, 2023

Daiwa Securities Group Inc.

Report Regarding Consolidated Liquidity Coverage Ratio

and Consolidated Net Stable Funding Ratio

Situation of Soundness in Liquidity Management as of Second Quarter in Fiscal Year 2022

In accordance with the Financial Instruments and Exchange Act Article 57-17, "Notification, etc. of Documents Describing Status of Soundness in Management", Daiwa Securities Group Inc. reports the situation of soundness in liquidity management as of the second quarter in fiscal year 2022.

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Table of Contents
Key Metrics (at consolidated group level)	3
Qualitative Disclosure (Consolidated)	4
1.	Qualitative disclosure of consolidated Liquidity Coverage Ratio	4
2.	Qualitative disclosure of consolidated Net Stable Funding Ratio	5
Quantitative Disclosure (Consolidated)	6
1.	Quantitative disclosure of consolidated Liquidity Coverage Ratio	6
2.	Quantitative disclosure of consolidated Net Stable Funding Ratio	7

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Key Metrics (at consolidated group level)

KM1: Key Metrics

（Unit :1 Million Yen,%）

Second Quarter in Fiscal Year 2022

First Quarter in Fiscal Year 2022

Fourth Quarter in Fiscal Year 2021

Third Quarter in Fiscal Year 2021

Second Quarter in Fiscal Year 2021

Consolidated liquidity coverage ratio

15	Total high quality liquid	2,593,166	2,447,045	2,642,117	2,615,330	2,666,490
assets
16	Total net cash outflows	1,802,474	1,733,889	1,772,313	1,797,829	1,709,909
17	Consolidated liquidity	143.8%	141.1%	149.0%	145.4%	155.9%
coverage ratio
Consolidated net stable funding ratio
18	Total available stable	9,154,147	8,629,425	8,480,413	8,267,404	8,815,759
funding
19	Total required stable	6,211,679	6,045,794	5,713,587	5,457,139	5,490,069
funding
20	Consolidated net stable	147.3%	142.7%	148.4%	151.4%	160.5%
funding ratio

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Qualitative Disclosure (Consolidated)

1. Qualitative disclosure of consolidated Liquidity Coverage Ratio

1. Changes in consolidated Liquidity Coverage Ratio over previous quarter

The Group's total High Quality Liquid Asset (HQLA) was 2,593,166 million yen, an increase of 146,121 million yen from the previous quarter.

Cash outflows related to unsecured wholesale funding were 1,552,073 million yen, an increase of 131,526 million yen from the previous quarter. Cash outflows related to other contingent funding obligations were 178,581 million yen, a decrease of 59,354 million yen from the previous quarter. Cash inflows related to inflows from fully performing exposures were 600,550 million yen, an increase of 40,733 million yen from the previous quarter. Cash inflows related to Other cash inflows were 1,082,892 million yen, a decrease of 76,306 million yen from the previous quarter. Thus total net cash outflows were 1,802,474 million yen, an increase of 68,585 million yen from the previous quarter.

As a result of the above-mentioned conditions, the Group's consolidated Liquidity Coverage Ratio was 143.8%, an increase of 2.7 percent. For the past two years, changes in the ratio have been relatively stable.

1. Evaluation of the Group's consolidated Liquidity Coverage Ratio

The Group defines "The Rule of Regulatory Liquidity Management", and not only manages to keep the Liquidity Coverage Ratio above the regulatory limit, but also sets an internal alert level, and periodically reviews whether the ratio is above the internal alert level.

The Group's consolidated Liquidity Coverage Ratio is sufficiently above the minimum requirement.

1. Composition of HQLA

There is no significant change in the composition of HQLA over the previous quarter.

1. Other issues related to the consolidated Liquidity Coverage Ratio
   There is no significant item for disclosure.

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2. Qualitative disclosure of consolidated Net Stable Funding Ratio

1. Changes in consolidated Net Stable Funding Ratio over previous quarter

The Group's total Available Stable Funding (ASF) was 9,154,147 million yen, an increase of 524,722 million yen from the previous quarter. Wholesale funding was 5,232,684 million yen, an increase of 587,863 million yen.

Total Required Stable Funding (RSF) was 6,211,679 million yen, an increase of 165,885 million yen. Loans, repo transactions-related assets, securities and other similar assets were 3,031,754 million yen, a decrease of 43,780 million yen. And other assets were 2,732,808 million yen, an increase of 249,732 million yen.

As a result of the above-mentioned conditions, the Group's consolidated Net Stable Funding Ratio was 147.3%, an increase of 4.6 percent. The ratio is sufficiently above the minimum requirement.

1. Application of Exception for Interdependent Asset and Liability
   Not applicable.
2. Other issues related to the consolidated Net Stable Funding Ratio
   There is no significant item for disclosure.

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