1 Top Management and Board of Directors; 2 Top shareholders; 3 Peer Comparison & Ranking of 8601; 4 Currency Synopsis: Japanese Yen (JPY)

Top Management and Board of Directors

Top Management
Top Management [One top executive with tenure > 10 yrs]

NameDesignationSince Appointment
Takashi HibinoChairman, Director10 Yrs, 9 Mos

Top Management [Nine top executives with tenure < 1 yr]

NameDesignationSince Appointment
Toyo AbeExecutive Director10 Mos
Seiji NakataChief Executive Officer, President, Director-
Eiji SatoChief Financial Officer, Managing Executive Officer-
Kazuo TakahashiExecutive Vice President-
Keiko TashiroDirector, Executive Vice President-
Koichi MatsushitaExecutive Vice President-
Mikita KomatsuExecutive Vice President-
Masahisa NakagawaExecutive Vice President-
Toshihiro MatsuiDirector, Executive Vice President-

Board Of Directors
Board Of Directors

Akihiko OginoDirector, Senior Managing Executive Officer
Sachiko HanaokaDirector
Hiromasa KawashimaDirector
Yumiko MurakamiIndependent Director
Hirotaka TakeuchiIndependent Director
Toshio IwamotoIndependent Director
Eriko KawaiIndependent Director
Michiaki OgasawaraIndependent Director
Ikuo NishikawaIndependent Director
Katsuyuki NishikawaIndependent Director

Top shareholders
Top 10 shareholders

Name of the Share HolderNumber Of Shares% of Capital
The Master Trust Bank of Japan, Ltd. (Trust Account)23854557315.2
Custody Bank of Japan, Ltd. (Trust Account)773703734.9
Taiyo Life Insurance Company444134192.8
Nippon Life Insurance Company335847062.1
JAPAN POST HOLDINGS Co., Ltd.323292032.1
Barclays Securities Japan Limited320153272.0
Daiwas Employee Stock Ownership Association241684331.5
% held by Top 10 shareholders 36.6%

Peer Comparison & Ranking of 8601

Daiwa Securities is a constituent of the following indices.

Its market capitalisation is $9 billion and accounts for 0.6% of the combined MCap of the TOPIX Large70 Index.

Index NameMCap of Index ($ b)8601 MCap as % of Index
TOPIX Large70 Index1,465 0.6
TOPIX 100 Index3,125 0.3
Nikkei 225 Index3,354 0.3
Nikkei 300 Index3,903 0.2
TOPIX 500 Index4,238 0.2
TOPIX 1000 Index4,553 0.2

Daiwa Securities vs Tokyo Market

Out of 3,737 stocks and 15 units in the Japan Market, Daiwa Securities is ranked 150th(150) by Net Profit $, 203rd(203) by EBITDA Margin%, 942nd(942) by P/Sales and 1085th(1085) by Price/Net Tangible Assets.

Tokyo Avg86018601 Rank
Net Profit $266.3 M427.5 M150
EBITDA Margin%8.728.3203
Price/Net Tangible Assets1.6x0.9x1085
Discount to 52-Wk High (%)5.27.12184
Yield (%)-1.42372
ROE (%)8.54.42670
Premium to 52-Wk Low (%)25.257.52811
ROA (%)1.40.33255
Total Debt/Equity (the lower the better)0.8x3.9x3312
Negative values are shown in brackets.
Stock in Index and Stock in Sector

Description8601Nikkei 225 Index% of Nikkei 225 IndexSecurities & commodity futures sector% of Securities & commodity futures sector
Net Profit $427.5 M212.4 B0.21.9 B22.0
Revenue $3.1 B3,365.3 B0.123.1 B13.5
Total Assets $176.8 B14,523.1 B1.2696.9 B25.4
MCap $9 B3,354.3 B0.339.8 B22.6

Relative Valuation Indicators: Stock vs Index and Stock vs Sector

Description8601Nikkei 225 Index Avg.Securities & commodity futures sector Avg.
Yield (%)1.412,407.162.76
Price/Net Tangible Assets0.871.630.79
Total Debt/Equity (the lower the better)3.86x0.9x3.28x

Daiwa Securities vs Securities & Commodity Futures sector [Securities & Commodity Futures sector Total in Brackets]
Revenue of JPY464.2 billion ($3.1 billion)[14.6% of aggregate sector revenue of JPY3,448.2 billion; down from 16.7% in the previous year.]
Net Profit of JPY63.9 billion ($427.5 million) [24.5% of aggregate sector net profit of JPY290.5 billion; up from 13.9% in the previous year.]
EBIT of JPY96.8 billion ($647.7 million) [21.2% of aggregate sector EBIT of JPY510 billion; up from 15.8% in the previous year.]

GLOBAL RANK [out of 46,810 stocks] AND RANK OF DAIWA SECURITIES IN THE ASIA REGION [out of 25,358 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap ($)9B1,731549
Total Assets ($)176.8B397140
Revenue ($)3.1B3,5801,469
Net Profit ($)427.6M2,475843
Return on Equity %4.422,48613,798
Net Profit Margin %15.97,9664,238
Price to Book0.910,8456,548
Yield %2.712,4996,513
PV1000 (1Year) $*1,5225,9283,171
$* Change (1Year) %49.46,0663,313

* 1 year ago $1 = JPY 144.97
Oct 02, 2023: $ 1 equals JPY 149.41


DescriptionValueIn Nikkei 225 IndexIn Tokyo MarketIn Securities & commodity futures sector
Revenue (JPY)464.2B1573253
Net Profit (JPY)63.9B981472
Return on Equity %4.41672,56219
Net Profit Margin %15.91830714
Price to Book0.9541,11919
Yield %1.41672,37727
PV1000 (1Year) JPY1,572436138

Daiwa Securities is ranked number 2 out of 40 listed securities & commodity futures companies in the Japan with a market capitalization of JPY1,344 billion ($9 billion).
In the securities & commodity futures companies it has the 2nd highest total assets and 3rd highest revenues.
Within its sector it has a relatively moderate P/E of 19.7.

It has a moderate relative ROE of 4.4% and ROA of 0.3%. The company paid a dividend of JPY12.0 in the last twelve months. The dividend yield is moderate at 1.4%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

Currency Synopsis: Japanese Yen (JPY)
% Change of JPY vs Currency Basket Period-Based
In the past year the Japanese Yen fell 3.0% against the US Dollars; in the past three years the Japanese Yen fell 29.3% against the US Dollars.

LastCountry1-day %1-week %1-Year %3-Yrs %
JPY1=0.007USDUnited States Of America0.2-0.7-3.0-29.3
JPY1=0.006EUREuropean Union-0.6--11.5-22.4
JPY1=9.033KRWSouth Korea-0.3-0.5-8.3-18.9
JPY1=0.011NZDNew Zealand-1.1-2.0-8.7-23.1
JPY1=0.005GBPUnited Kingdom-0.7-0.3-14.6-26.2
JPY1=0.052HKDHong Kong0.2-0.6-3.3-28.6

1 Tax & Dividend; 2 Financials as Reported FY 2023, Past 10 Years

Tax & Dividend
Average Income Tax Paid (Past 5 Years)
In the past 5 years, Income Tax as % of profit before tax decreased from 32.9% to 23.9% and Income Tax as % of operating cash flow increased from 8.6% to 17.6%.

As % of profit before tax23.926.524.227.832.9
As % of operating cash flow17.621.319.620.48.6

The 5-year average of profit before tax was 27%.

Dividend History
In the past 5 years annual dividends have decreased by JPY8.0 from JPY20.0 to JPY12.0. Based on a start date of 5 years ago, there has been two increases in dividends over the last 5 years.

DateValue (JPY)Type
30 Mar 202312Final
Tr 12 Months12
2021 - 202227
2020 - 202142
2019 - 202020
2018 - 201920

Financials as Reported FY 2023, Past 10 Years
Financials as reported (FY 2023 [year-ended 31 March 2023 ])

(In JPY Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (FY 2023 [year-ended 31 March 2023 ])

DescriptionJPY MillionJPY Million
Mar 3120232022Change %
Operating revenue
Commission received279,991314,051Down 10.8
Brokerage commission64,27275,907Down 15.3
Commission for underwriting secondary distribution and solicitation for selling and others for professional investors28,16539,210Down 28.2
Fees for offering secondary distribution and solicitation for selling and others for professional investors11,31621,440Down 47.2
Other commission received176,237177,493Down 0.7
Net trading income70,253101,522Down 30.8
Net gain (loss) on private equity and other securities3,6926,048Down 39.0
Financial revenue332,54875,978Up 337.7
Other operating revenue179,604121,870Up 47.4
Total operating revenue866,090619,471Up 39.8
Financial expenses268,49844,714Up 500.5
Other operating expenses133,36572,663Up 83.5
Net operating revenue464,226502,093Down 7.5
Selling general and administrative expenses
Trading related expenses71,54562,588Up 14.3
Personnel expenses199,790198,790Up 0.5
Real estate expenses38,70437,643Up 2.8
Office expenses25,76824,740Up 4.2
Depreciation34,49734,811Down 0.9
Taxes and dues10,19110,678Down 4.6
Provision of allowance for doubtful accounts4932Up 53.1
Other17,40417,274Up 0.8
Total selling general and administrative expenses397,952386,559Up 2.9
Operating profit66,273115,534Down 42.6
Non-operating income
Dividend income3,5354,738Down 25.4
Share of profit of entities accounted for using equity method8,9548,104Up 10.5
Foreign exchange gains2,274601Up 278.4
Gain on investments in investment partnerships7,8515,216Up 50.5
Other2,0634,587Down 55.0
Total non-operating income24,67923,247Up 6.2
Non-operating expenses
Interest expenses1,9091,838Up 3.9
Bond issuance costs17730Up 490.0
Other1,9351,090Up 77.5
Total non-operating expenses4,0222,960Up 35.9
Ordinary profit86,930135,821Down 36.0
Extraordinary income
Gain on sale of non-current assets12,23545Up 27,088.9
Gain on receipt of donated non-current assets318
Gain on sale of investment securities5,2823,858Up 36.9
Gain on sale of shares of subsidiaries and associates2,926
Recoveries of written off receivables302
Reversal of provision for loss on litigation686
Gain on reversal of office relocation expenses872
Gain on reversal of share acquisition rights667
Total extraordinary income18,1859,010Up 101.8
Extraordinary losses
Loss on sale and retirement of non-current assets2,279627Up 263.5
Impairment losses488
Loss on sale of investment securities142
Loss on valuation of investment securities2,215734Up 201.8
Loss on valuation of shares of subsidiaries and associates432
Loss on change in equity85
Provision of reserve for financial instruments transaction liabilities57017Up 3,252.9
Structural reform cost44
Business restructuring expenses2,1731,074Up 102.3
Expenses related to the 120th anniversary project452
Total extraordinary losses8,3503,166Up 163.7
Profit before income taxes96,766141,666Down 31.7
Income taxes - current19,98039,609Down 49.6
Income taxes - deferred3,102-2,088Recovery
Total income taxes23,08237,521Down 38.5
Profit73,683104,144Down 29.2
Profit attributable to non-controlling interests9,8089,253Up 6.0
Profit attributable to owners of parent63,87594,891Down 32.7
Basic earnings per shareJPY43.53JPY63.06Down 31.0
Average number of shares1,467,422,3571,504,697,698Down 2.5

BALANCE SHEET AS REPORTED (FY 2023 [year-ended 31 March 2023 ])

DescriptionJPY MillionJPY Million
Mar 3120232022Change %
Current assets
Cash and deposits3,866,8194,592,384Down 15.8
Segregated deposits541,629559,729Down 3.2
Notes and accounts receivable - trade and contract assets22,06222,420Down 1.6
Securities1,131,6821,177,898Down 3.9
Trading products7,625,7138,004,920Down 4.7
Trading securities and other5,425,1595,919,617Down 8.4
Derivatives2,200,5542,085,303Up 5.5
Operational investment securities127,693123,839Up 3.1
Allowance for investment loss-70-151Improved 53.6
Operating loans2,015,0341,933,758Up 4.2
Work in process853768Up 11.1
Margin transaction assets160,255177,401Down 9.7
Margin loans153,574170,555Down 10.0
Cash collateral provided for securities borrowed in margin transactions6,6806,845Down 2.4
Loans secured by securities8,341,5628,394,277Down 0.6
Cash collateral provided for securities borrowed6,844,2925,283,874Up 29.5
Securities purchased under resale agreements1,497,2703,110,403Down 51.9
Advances paid18,75622,454Down 16.5
Short-term loans receivable810439Up 84.5
Accrued revenue63,80540,062Up 59.3
Other current assets965,074967,025Down 0.2
Allowance for doubtful accounts-8,822-7,589Deterioration 16.2
Total current assets24,872,86026,009,638Down 4.4
Non-current assets
Property plant and equipment916,873913,879Up 0.3
Buildings net241,775233,825Up 3.4
Machinerys and equipmentsnet9,1039,379Down 2.9
Equipment17,44916,418Up 6.3
Land643,695650,741Down 1.1
Construction in progress4,8503,514Up 38.0
Intangible assets125,571121,482Up 3.4
Goodwill18,52619,657Down 5.8
Leasehold interests in land5,6385,787Down 2.6
Software65,25174,516Down 12.4
Other36,15421,521Up 68.0
Investments and other assets497,943486,088Up 2.4
Investment securities455,317443,446Up 2.7
Long-term loans receivable6,4986,451Up 0.7
Long-term guarantee deposits15,79616,748Down 5.7
Deferred tax assets7,84011,992Down 34.6
Other17,77112,491Up 42.3
Allowance for doubtful accounts-1,660-1,422Deterioration 16.7
Allowance for investment loss-3,620-3,620Steady
Total non-current assets1,540,3881,521,450Up 1.2
Total assets26,413,24827,531,089Down 4.1
Current liabilities
Notes and accounts payable - trade8,1206,361Up 27.7
Trading products5,442,5484,945,900Up 10.0
Trading securities and other3,451,6082,948,427Up 17.1
Derivatives1,990,9401,997,473Down 0.3
Trade date accrual1,155,831548,406Up 110.8
Margin transaction liabilities52,78570,318Down 24.9
Margin borrowings3,8175,327Down 28.3
Cash received for securities sold in margin transactions48,96764,991Down 24.7
Borrowings secured by securities7,929,6099,463,697Down 16.2
Cash collateral received for securities lent6,508,8734,761,437Up 36.7
Securities sold under repurchase agreements1,420,7354,702,259Down 69.8
Deposits for banking business3,932,7614,189,105Down 6.1
Deposits received430,664456,384Down 5.6
Guarantee deposits received431,383347,468Up 24.2
Short-term borrowings1,292,8482,155,782Down 40.0
Commercial papers261,300116,000Up 125.3
Current portion of bonds payable485,029446,760Up 8.6
Income taxes payable10,6758,649Up 23.4
Provision for bonuses33,28737,586Down 11.4
Other current liabilities114,430152,851Down 25.1
Total current liabilities21,581,27522,945,274Down 5.9
Non-current liabilities
Bonds payable1,304,5431,563,631Down 16.6
Long-term borrowings1,706,9851,237,048Up 38.0
Deferred tax liabilities42,28042,241Up 0.1
Retirement benefit liability44,30944,236Up 0.2
Provision for loss on litigation169115Up 47.0
Other noncurrent liabilities53,90654,934Down 1.9
Total non-current liabilities3,152,1952,942,208Up 7.1
Reserves under special laws
Reserve for financial instruments transaction liabilities4,2873,717Up 15.3
Total reserves under special laws4,2873,717Up 15.3
Total liabilities24,737,75825,891,200Down 4.5
Net assets
Shareholders' equity
Share capital247,397247,397Steady
Capital surplus230,274230,451Down 0.1
Retained earnings886,160942,793Down 6.0
Treasury shares-71,522-134,201Improved 46.7
Deposits for subscriptions of treasury shares26
Total shareholders' equity1,292,3091,286,467Up 0.5
Accumulated other comprehensive income
Valuation difference on available-for-sale securities24,71729,587Down 16.5
Deferred gains or losses on hedges16,0289,940Up 61.2
Foreign currency translation adjustment74,78547,288Up 58.1
Total accumulated other comprehensive income115,53186,815Up 33.1
Share acquisition rights8,7939,109Down 3.5
Non-controlling interests258,855257,497Up 0.5
Total net assets1,675,4891,639,888Up 2.2
Total liabilities and net assets26,413,24827,531,089Down 4.1

CASH FLOW AS REPORTED (FY 2023 [year-ended 31 March 2023 ])

DescriptionJPY MillionJPY Million
Mar 3120232022Change %
Cash flows from operating activities
Profit before income taxes96,766141,666Down 31.7
Depreciation43,95444,612Down 1.5
Amortization of goodwill1,8181,547Up 17.5
Increase (decrease) in allowance for doubtful accounts1,1423,766Down 69.7
Increase (decrease) in reserve for financial instruments transaction liabilities57017Up 3,252.9
Interest and dividend income-3,694-4,886Improved 24.4
Interest expenses1,9091,838Up 3.9
Share of loss (profit) of entities accounted for using equity method-8,954-8,104Deterioration 10.5
Loss (gain) on sale and retirement of non-current assets-9,956582Deterioration
Loss (gain) on sale of investment securities-5,140-3,858Deterioration 33.2
Loss (gain) on sale of shares of subsidiaries and associates-2,926
Loss (gain) on change in equity85
Loss (gain) on valuation of investment securities2,215734Up 201.8
Impairment losses488
Structural reform cost44
Decrease (increase) in cash segregated as deposits for customers-22,434-47,224Improved 52.5
Decrease (increase) in trading products - assets (liabilities)1,517,792-368,926Recovery
Decrease (increase) in operational investment securities1,400-23,820Recovery
Decrease (increase) in operating loans receivable-75,25069,680Deterioration
Decrease/increase in margin transaction assets/liabilities-387-9,026Improved 95.7
Decrease/increase in loans/borrowings secured by securities-1,514,593310,365Deterioration
Decrease (increase) in short-term loans receivable-2721Deterioration
Increase (decrease) in deposits for banking business-256,343-226,991Deterioration 12.9
Decrease (increase) in short-term guarantee deposits-41,345-93,978Improved 56.0
Increase (decrease) in guarantee deposits received84,214-19,173Recovery
Increase (decrease) in deposits received-31,97530,857Deterioration
Other net54,127-113,687Recovery
Subtotal-164,109-316,380Improved 48.1
Interest and dividends received8,0797,897Up 2.3
Interest paid-2,199-2,875Improved 23.5
Income taxes refund (paid)-25,515-42,108Improved 39.4
Net cash provided by (used in) operating activities-183,745-353,467Improved 48.0
Cash flows from investing activities
Payments into time deposits-60,060-60,494Improved 0.7
Proceeds from withdrawal of time deposits69,86261,197Up 14.2
Purchase of securities-567,453-1,117,496Improved 49.2
Proceeds from sale and redemption of securities614,968996,100Down 38.3
Purchase of property plant and equipment-47,702-62,564Improved 23.8
Proceeds from sale of property plant and equipment28,57511,056Up 158.5
Purchase of intangible assets-33,546-23,023Deterioration 45.7
Purchase of investment securities-23,555-36,123Improved 34.8
Proceeds from sale and redemption of investment securities40,02217,681Up 126.4
Purchase of shares of subsidiaries and associates-12,140-15,064Improved 19.4
Proceeds from sale of shares of subsidiaries and associates5,927
Loan advances-468-533Improved 12.2
Proceeds from collection of loans receivable107227Down 52.9
Other net-1,1524,577Deterioration
Net cash provided by (used in) investing activities7,457-218,534Recovery
Cash flows from financing activities
Net increase (decrease) in short-term borrowings-428,321264,984Deterioration
Proceeds from long-term borrowings589,550100,500Up 486.6
Repayments of long-term borrowings-424,580-115,433Deterioration 267.8
Proceeds from issuance of bonds350,861810,707Down 56.7
Redemption of bonds-582,999-585,157Improved 0.4
Proceeds from sale of treasury shares8031,817Down 55.8
Purchase of treasury shares-19,733-29,297Improved 32.6
Dividends paid-39,905-63,790Improved 37.4
Dividends paid to non-controlling interests-10,622-10,533Deterioration 0.8
Other net-9313,293Deterioration
Net cash provided by (used in) financing activities-565,878377,090Deterioration
Effect of exchange rate change on cash and cash equivalents23,34925,760Down 9.4
Net increase (decrease) in cash and cash equivalents-718,816-169,150Deterioration 325.0
Cash and cash equivalents at beginning of period4,554,3754,723,526Down 3.6
Cash and cash equivalents at end of period3,835,5594,554,375Down 15.8

Download DAIWA SECURITIES Financials Past 10 Years

Description (March 31)20232022202120202019
Income Statement
Revenue per share 316.35333.68306.52276.29276.25
EBITDA (B)131.3176.5178.5115.6362.9
Depreciation (B)34.534.833.930.825.3
Tax (B)23.137.534.923.631.3
Net profit (B)63.994.9108.460.363.8
EPS 43.5363.0671.239.1139.95
Balance Sheet
Equity Share Capital (B)1,416.61,382.41,342.71,218.91,253.2
Retained Earnings (B)895951.9920.9843.3814.5
Total Debt (B)6,471.410,221.55,021.34,295.34,334.6
Total Assets (B)26,413.227,531.126,099.323,822.121,126.7
Current Asset (B)24,872.926,009.624,646.322,846.620,405.6
Fixed Asset (B)916.9913.9880.519.2168.1
Working Capital (B)3,291.63,064.43,4272,927.93,323.6
Cash Flow
Operating Cash Flow (B)(183.7)(353.5)391167.2304.9
Investing Cash Flow (B)7.5(218.5)(91.6)(215.4)108.2
Financing Cash Flow (B)(565.9)377.1438.1(135.8)55.7
Net Cash Flow (B)(742.2)(194.9)737.4(184)468.8

Description (March 31)20182017201620152014
Income Statement
Revenue per share 378.62391.05374.46
EBITDA (B)326.5261.1283.32.8
Depreciation (B)24.323.423.820.730.9
EBIT (B)302.2237.7259.41.52.5
Interest (B)148.398.789.51.560.2
Profit before tax (B)153.9139169.9181.8195.1
Tax (B)38.534.746.927.417.6
Net profit (B)110.6104.1116.8154.3169
EPS 66.8867.6686.7298.46
Balance Sheet
Equity Share Capital (B)1,370.51,259.61,228.8
Retained Earnings (B)785.7718.2683.9623.2527.1
Total Debt (B)9,880.39,726.85,721.37,164.96,819.4
Total Assets (B)21,13519,827.320,420.822,981.719,431.2
Current Asset (B)20,478.519,258.919,851.622,171.518,737.1
Fixed Asset (B)57125124.6458.1431.3
Working Capital (B)3,443.43,251.13,023.72,834.32,582.4
Cash Flow
Operating Cash Flow (B)(1,319.2)44.5221.7725.31,120.7
Investing Cash Flow (B)777.9307.7415.6(13.3)(447.4)
Financing Cash Flow (B)432.8143.2(229.7)343.125.5
Net Cash Flow (B)(108.6)495.5407.71,055.2698.9