Daiwa Securities Group 4Q FY2017 Earnings Announcement April 27, 2018 This presentation may contain forward-looking statements about the Daiwa Securities Group. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies, contain projections of results of operations or of financial condition or state other “forward-looking” information. These statements are based on currently available information and represent the beliefs of the management of the Daiwa Securities Group. These statements are subject to numerous risks and uncert ainties that could cause the Daiwa Securities Group’s actual results, performance, achievements or financial condition to differ materially from those described or implied in the forward-looking statements. The Daiwa Securities Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatile and sudden movements in the international securities markets, foreign exchange and global economic situations affecting the Daiwa Securities Group.
Table of Contents 3-4 Highlights 5-7 Financial Summary 8-9 B/S & Financial Management Summary 10 P/L Summary 11-12 Breakdown of SG&A 13 Overseas Operation 14-21 Segment Information 22-35 Reference 2 2
Highlights (1Q-4Q/FY2017) Net operating revenues, Ordinary income and Profit attributable to owners of parent increased YoY all together for the first time in 4 years. % Change vs Consolidated earnings results FY2017 1Q-4Q FY2016 Net operating revenues Y505.3 bil +6.9% Ordinary income Y155.6 bil +14.8% Profit attributable to owners of parent Y110.5 bil +6.3% 【 Retail Division 】 Equity revenues rose as trading volume of foreign equities significantly increased by capturing customer needs under a new sales promotion strategy with more emphasis on customers perspective. Contract AUM of Wrap Account Service reached a record high (Y1,971.3 bil) by expanding product line up and after- sales care. Sales of stock investment trust investing in IoT, robot and electronic vehicle related stocks remained strong. 【 Wholesale Division 】 Acted as a global coordinator for several large deals including JAPAN POST HOLDINGS 2nd PO and global IPO of SG Holdings Co., Ltd.. Retained1 st place on primary and secondary equity offerings league table and municipal bonds league table. IPO and straight bonds climbed the league table (2 nd place). For M&A business, Sagent and Signal Hill, acquired M&A advisory firms in the U.S., integrated to launch DCS Advisory, establishing a strong global network to retain cross-border and global M&A business. FY2017 dividend per share: 28yen (interim: 13yen, year-end: 15yen) Annual dividend payout ratio: 41.9%. Total payout ratio: 75.2%. 〔 ※ 〕 Amendment to dividend payment policy with regard to dividend payout ratio: from “approximately 40%” to “ at least 50%”, which will take effect from interim dividend for FY2018. 3
Summary (4Q/FY2017) 4Q FY2017 Net operating revenues: Y130.8 bil (-3.0% QoQ) Revenues in Retail Division decreased mainly due to a drop in stock investment trust sales during correction phase since February. For Wholesale Division, Equity in Global Markets and M&A business in Global Investment Banking contributed to increase in revenues. 4Q FY2017 Ordinary income: Y43.4 bil (+0.6% QoQ) SG&A rose to Y97.5 bil (+3.0% QoQ) as personnel expenses increased. Ordinary income remained at a high level due to a profit from replacement of properties in Daiwa Office Investment Corp. 4Q FY2017 Profit attributable to owners of parent company: Y36.5 bil (+61.2% QoQ) Profit attributable to owners of parent significantly increased QoQ which posted provision for loss on litigation. Annualized ROE: 11.5%, BPS: Y786.56 Profit Attributable to Owners of Net Operating Revenues Ordinary Income Parent Company （ Y bil ） （ Y bil ） （ Y bil ） 180 60 60 43.8 43.2 43.4 130.9 134.9 130.8 111.7 114.0 115.0 121.9 121.6 108.5 120 28.6 32.5 33.2 35.4 34.3 36.5 31.9 30.4 26.6 30 25.1 30 21.3 24.5 22.6 22.3 19.3 60 0 0 0 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY2016 FY2017 FY FY2016 FY2017 FY FY2016 FY2017 2015 2015 2015 4
Consolidated Financial Summary FY2016 FY2017 % Change vs % Change vs % Change vs (Y mil) FY2016 FY2017 3Q/FY17 4Q/FY16 FY16 4Q 1Q 2Q 3Q 4Q Operating revenues 166,322 159,652 176,611 190,875 185,461 -2.8% 11.5% 616,497 712,601 15.6% Net operating revenues 121,618 108,543 130,923 134,997 130,886 -3.0% 7.6% 472,750 505,350 6.9% SG&A 91,508 87,121 90,924 94,725 97,520 3.0% 6.6% 353,687 370,292 4.7% Ordinary income 34,394 25,153 43,829 43,216 43,477 0.6% 26.4% 135,623 155,676 14.8% Profit (loss) attributable to 22,358 19,395 31,905 22,697 36,581 61.2% 63.6% 104,067 110,579 6.3% owners of parent Total assets 19,827,296 19,815,830 20,381,308 21,925,865 21,141,743 19,827,296 21,141,743 Net assets 1,343,433 1,340,130 1,385,594 1,375,632 1,370,520 1,343,433 1,370,520 Shareholders' equity* 1,250,890 1,248,272 1,288,915 1,278,643 1,273,133 1,250,890 1,273,133 EPS (Y) 13.26 11.63 19.12 13.73 22.53 61.53 66.88 BPS (Y) 745.80 748.15 772.32 780.71 786.56 745.80 786.56 ROE (Annualized) 7.1% 6.2% 10.1% 7.1% 11.5% 8.4% 8.8% * Shareholders’ equity = Owners’ equity + Accumulated other comprehensive income FY2017 Proposed Dividend 28 yen (including 13 yen interim dividend) 5
Consolidated Segment Summary (Y mil) FY2016 FY2017 % Change vs % Change vs % Change vs Net operating revenues FY2016 FY2017 3Q/FY17 4Q/FY16 FY16 4Q 1Q 2Q 3Q 4Q Retail 49,654 48,833 51,269 59,570 54,573 -8.4% 9.9% 188,051 214,247 13.9% Wholesale 47,113 35,280 43,051 45,726 47,135 3.1% 0.0% 182,875 171,192 -6.4% 33,645 27,356 30,090 32,633 142,859 Global M arkets 33,616 3.0% -0.1% 123,697 -13.4% 13,468 7,923 12,960 13,092 40,015 Global Investment Banking 13,518 3.3% 0.4% 47,495 18.7% Asset Management 11,798 12,011 12,141 12,650 12,587 -0.5% 6.7% 46,438 49,390 6.4% Investments 2,484 1,801 13,914 6,326 5,359 -15.3% 115.7% 15,736 27,401 74.1% Other/Adjustments 10,567 10,618 10,547 10,722 11,230 - - 39,647 43,118 - Consolidated total 121,618 108,543 130,923 134,997 130,886 -3.0% 7.6% 472,750 505,350 6.9% FY2016 FY2017 % Change vs % Change vs % Change vs Ordinary income FY2016 FY2017 3Q/FY17 4Q/FY16 FY16 4Q 1Q 2Q 3Q 4Q Retail 8,700 10,391 10,626 18,002 12,312 -31.6% 41.5% 29,375 51,331 74.7% Wholesale 16,429 6,438 12,892 12,789 13,252 3.6% -19.3% 65,437 45,373 -30.7% 10,759 5,364 7,877 9,817 53,595 Global M arkets 11,228 14.4% 4.4% 34,288 -36.0% 5,607 748 4,805 2,794 11,369 Global Investment Banking 1,760 -37.0% -68.6% 10,109 -11.1% Asset Management 6,627 7,200 7,137 7,489 7,292 -2.6% 10.0% 26,572 29,119 9.6% Investments 1,553 1,417 13,175 5,529 4,377 -20.8% 181.8% 13,041 24,499 87.9% Other/Adjustments 1,084 -294 -2 -594 6,243 - - 1,196 5,353 - Consolidated total 34,394 25,153 43,829 43,216 43,477 0.6% 26.4% 135,623 155,676 14.8% ※ Figures calculated based on managerial accounting of each Group companies. Equity in earnings of affiliates is included in each respective segment. 6
Consolidated Segment Summary Net operating revenues Ordinary income Retail Division Wholesale Division （ Y bil ） （ Y bil ） Global Markets (Net operating revenues) 59.5 Global Investment Banking (Net operating revenues) 54.5 51.2 47.1 47.1 46.4 45.9 45.7 49.6 49.6 48.8 43.7 43.4 43.0 45.0 44.3 43.7 35.2 GM 17.2 18.0 16.9 16.4 14.8 13.2 12.8 12.8 12.7 12.3 10.6 10.3 9.5 8.7 6.4 6.5 5.3 4.5 GIB 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 FY2016 FY2017 FY2015 FY2015 Asset Management Division Investment Division （ Y bil ） （ Y bil ） 13.9 12.6 12.5 12.0 12.1 11.7 11.6 11.4 11.5 11.0 6.3 13.1 5.7 5.3 4.9 2.5 2.4 1.8 1.1 7.2 7.4 7.2 7.1 6.7 6.6 6.6 6.5 4.6 4.9 5.5 5.9 0.5 1.4 4.3 1.8 1.5 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 FY2016 FY2017 FY2015 FY2015 7
Recommend
More recommend
