30 July 2013

IWAI ToruDaiwa Securities Co. Ltd.

Leveraging Financial Capabilities towards a Sustainable Society

Peace Arch HiroshimaThe World Business Council for World PeaceSeminar on Global Health

1

Others35%

Daiwa65%

Source ：Daiwa SecuritiesFixed Income Sales Dept.

Impact Investment Initiative

▼Uridashi in Japan ▼Daiwa SecuritiesTotal 697.2(billion yen) Total 450.2

ClimateChange,155.9

Poverty,129.3

Vaccine,124.7

Foods, 28.6Education,11.8

Period ：Mar. 2008

toMar.2013

▼Impact Investment Bonds

2

Public Private Partnership

▼Innovative Financing for Vaccine Immunisation

Source ：IFFIm Website

“The GAVI model” has contributed to the immunisation of 370m additional children, averting over 5.5m future deaths.

* The International Finance Facility for Immunisation * * The Global Alliance for Vaccines and Immunization

* * *

3

Frontloading Future Donations ▼ IFFIm funding is utilized to reduce the number of

vaccine-preventable deaths through GAVI programmes.

▼ IFFIm issues Vaccine Bonds based on long-termdonor pledges.

Source: World Bank, March 2013

44

17%

32%

18%

3%

30%

55%

7%

7% 4%

27%

Billions of dollars, as of the end of 2009Japan* United Kingdom* Germany* France* United States

(%) (%) (%) (%) (%)Total Financial Assets 15,638 100.0 6,709 100.0 6,688 100.0 5,388 100.0 44,510 100.0

Currency and deposits 8,592 54.9 1,913 28.5 2,560 38.3 1,553 28.8 7,756 17.4Life insurance and pension fund reserves 4,228 27.0 3,615 53.9 2,241 33.5 2,126 39.5 13,191 29.6Shares and other equity 1,104 7.1 744 11.1 523 7.8 879 16.3 13,972 31.4Mutual funds and securitis other than shares 1,047 6.7 218 3.3 1,315 19.7 504 9.4 8,135 18.3Others 668 4.3 218 3.3 49 0.7 327 6.1 1,457 3.3

Total Financial Liabilities 4,085 26.1 2,474 36.9 2,193 32.8 1,864 34.6 14,068 31.6Net Financial Assets 11,553 73.9 4,235 63.1 4,495 67.2 3,524 65.4 30,442 68.4

Deep pocket is seeking decent returns

Primary sources: Japan: Bank of Japan, Flow of Funds Accounts , June 17, 2010 United Kingdom: Office for National Statistics, Financial Statistics No 580, August 2010 Germany: Deutsche Bundesbank, Financial Accounts for Germany 1991 to 2009. France: Banque de France, Financial Accounts and Financial Balance Sheets, June1, 2010. United States: Federal Reserve Statistical Release, Flow of Funds Accounts, June10, 2010.

* converted into US dollars based on the year-end exchange rates of GBPUSD=1.62, EURUSD=1.43, USDJPY=92.90

Mobilizing for Impact Investment

Japan United Kingdom

Germany

France United States

Currency and deposits Life insurance and pension fund reserves Shares and other equity Mutual funds and securitis other than shares Others

Currency and

deposits

Currency &

deposits

Insurance&

PensionShares

Mutual funds

Others29%

3%3%

54%

11%

20%1%

38%

34%

8%

29%9%

6%

16%

40%

Insurance&

Pension

Shares

Mutual funds

▼Household Financial Assets

Primary sources: Japan: Bank of Japan, Flow of Funds Accounts , June 17, 2010 United Kingdom: Office for National Statistics, Financial Statistics No 580, August 2010 Germany: Deutsche Bundesbank, Financial Accounts for Germany 1991 to 2009. France: Banque de France, Financial Accounts and Financial Balance Sheets, June1, 2010. United States: Federal Reserve Statistical Release, Flow of Funds Accounts, June10, 2010.

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APENDIX: GAVI & Vaccine Bond Impact

▼“The GAVI model” has contributed to the immunisation of 370m additional children, averting over 5.5m future deaths.

▼Daiwa Securities hascontributed to funding 1/3 of IFFIm Vaccine Bonds

Source ：GAVI Website

▼US$ 4.4 billion: GAVI dispersed from 2000 to Dec. 2012 (73 countries）▼US$ 3.8 billion: IFFIm raised from 2006 to March 2013 ▼US$ 1.9 billion: raised in Japan from 2008 to March 2013▼US$ 1.3 billion: raised through Daiwa Securities to March 2013▼ 60% of 73 countries approved for support are African countries

* The Global Alliance for Vaccines and Immunization・・・ワクチンと予防接種のための世界同盟

** The International Finance Facility for Immunisation・・・予防接種の為の国際金融ファシリティ

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APENDIX: Forum & Daiwa Internet TV

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