content_image/219510.jpg content_image/219511.jpg
## Report Regarding Situation of Soundness in Management 

## Qualitative Disclosure (Consolidated) 

## 1. Scope of Consolidation 

A). Discrepancy in the scope of consolidation defined under consolidated financial statement reported and that for consolidated capital adequacy ratio calculation. 

Not applicable. 

B). Number of consolidated subsidiaries, and company names and businesses of major consolidated subsidiaries. 

Number of consolidated subsidiaries: 60 companies 

<img src='content_image/219510.jpg'>

(Note 1) Daiwa Securities Co. Ltd and Daiwa Securities Capital Markets Co. Ltd merged on April 1, 2012 as Daiwa Securities Co. Ltd. 

C). Number of affiliated companies engage in financial activities, company names, and core businesses of major affiliated companies that engaged in financial activities under the provision of Article 9 of the Consolidated Capital Adequacy Ratio Notification published by Japan FSA. 

No company is subject to proportionate consolidation methods. 

D). Number of companies subject to the deduction, the names of major companies, and main businesses subject to the capital deduction specified under the provision of Article 8 Paragraph 1 (ii), (a)-(c) of the Consolidated Capital Adequacy Ratio Notification published by Japan FSA. 

Number of companies subject to the deductions: 25 companies 

<img src='content_image/219511.jpg'>

E). Overview of the restrictions on the transfer of funds and regulatory capital within Group companies 

There is no specific restriction set forth regarding the transfer of funds and regulatory capital within Group companies. 

