20130531 impact investment initiative daiwa

1. 1
Mission
▼ Leveraging Financial Capabilities
towards a Sustainable Society.

2. 2
Others
35%
Daiwa
65%
Source ：
Daiwa Securities
Fixed Income Sales Dept.
Impact Investment Initiative
▼Uridashi in Japan ▼Daiwa Securities
Total 697.2(billion yen) Total 450.2
Climate
Change,
155.9
Poverty,
129.3
Vaccine,
124.7
Foods, 28.6
Education,11.8
Period ：
Mar. 2008
to
Mar.2013
▼Impact Investment Bonds

3. 3
Impact Investing Bond Placements for Retail Clients
Year Name Issuer Application Currency Coupon Tenor
Settlement Date
in Japan
A m ount
(Y E N
100m illion)
Vaccine Bonds IFFIm
Supports vaccinations for children
in developing countries
ZAR 9.90% 2y 2008/3/19 213
World CO2LTM
Bonds World Bank
Linking interest rate on bonds to certified
emissionsreductions (CERs) generated by a
Chinese hydropowerplant to help build the
emission credit market
USD
Floatin
g
5y3m 2008/6/27 27
ZAR 6.26% 295
AUD 2.60% 27
NZD 2.65% 86
Microfinance Bonds IFC
Used for microfinance
(small-scale financial services for the poor)
AUD 5.10% 3y 2009/11/20 246
Green Bonds World Bank
projects which control global environment &
climate change such as global warming
NZD 5.23% 5y 2010/2/3 97
Vaccine Bonds IFFIm
Supports vaccinations for children
in developing countries
ZAR 7.15% 3y 2010/3/24 309
ZAR 7.18% 3y 265
AUD 4.40% 2y 339
ZAR 6.68% 3y 156
AUD 4.27% 2y 170
Microfinance Bonds
European Bank for
Reconstruction and
Development
Provides investments and loans to microfinance
institutions supplying financial services to
small businesses
ZAR 6.70% 3y 2010/6/15 87
Poverty Reduction
Bonds
Inter-American
Development Bank
Supports poverty alleviation projects
in Latin America and the Caribbean
BRL 8.12% 4y 2010/7/15 139
Education Bonds
African Development
Bank
Supporting education dissemination
and expansion projects in Africa
ZAR 5.95% 3y 2010/8/30 118
ZAR 5.70% 175
AUD 4.00% 115
Climate Awareness
Bonds
European
Investment Bank
Supports projects related to renewable energy
and energy efficiency as key issues in
addressing
TRY 6.62% 3y 2010/11/12 98
2009/2/203y
2008
2009
Vaccine Bonds IFFIm
Supports vaccinations for children
in developing countries
2010
Water Bond
Asian Development
Bank
2010/4/16
2010/5/21
Climate Awareness
Bonds
European
Investment Bank
Supports projects related to renewable energy
and energy efficiency as key issues in
addressing
Supports water-related projects
in the Asia-Pacific
Microfinance Bonds
International
Finance Corporation
Used for microfinance
(small-scale financial services for the poor)
3y 2010/9/22

4. 4
Impact Investing Bond Placements for Retail Clients
Year Name Issuer Application
Currenc
y
Coupo
n
Teno
r
Settlement
Date in Japan
A m ount
(Y E N
100m illion)
Poverty Reduction
Bonds
Inter-American
Development Bank
Supports poverty alleviation projects
in Latin America and the Caribbean
BRL 7.05% 3y 2011/2/2 196
Vaccine Bonds IFFIm
Supports vaccinations for children
in developing countries
BRL 7.81% 3y 2011/3/31 189
Environmental Bonds NIB Measure against Air and Water polutions ZAR 4.90% 4y 2011/11/25 91
0.38% 4y 65
1.14% 10y 30
Water Bond
Asian Development
Bank
Supports water-related projects
in the Asia-Pacific
TRY 6.29% 3y 2012/2/22 216
Agri bond Rabobank
Supporting sustainable agribusiness in developing
countries
TRY 7.00% 2y 2012/7/20 83
AUD 0.50% 10y 26
AUD 75
AUD 2
TRY 4.68% 4y 66
ZAR 5.23% 4y 39
50
25
25
50
25
25
AUD 4.02% 5y 2013/2/27 103
ZAR 5.66% 4y 2013/2/27 101
TRY 5.34% 5y 2013/3/28 47
ZAR 5.31% 5y 2013/3/28 82
Microfinance Bonds IFC
Used for microfinance
(small-scale financial services for the poor)
ZAR 5.20% 5y 2013/4/19 90
Source ：Daiwa Securities Fixed Income Sales Dept. Period ：Mar. 2008∼Mar.2013
2012
JICA Bonds JICA
0.72%
6y
10y
5y
2012/12/26JPY
0.30%
2.91%
2012/10/24
Projects which control global environment & climate
change such as global warming
Microfinance Bonds IFC
Green Bonds World Bank
Used for microfinance
(small-scale financial services for the poor)
2012/11/21
2013
Agri bond Rabobank
Vaccine Bonds IFFIm
Supports vaccinations for children
in developing countries
Yen Loan to developing countries help economic
development
Supporting sustainable agribusiness in developing
countries
JICA Bonds JICA
Yen Loan to developing countries help economic
development
JPY 2011/12/20
2011

5. 5
Daiwa Microfinance Fund (DMF)
■ Creating Opportunities for 59,032 people in Emerging Countries
■ Key findings
1 20ＭＦＩs Gross Loan Portfolio is 3 billion USD. Outreach is 2.79million loan users （1＄/￥100）
2 ＤＭＦ lends 55million USD to 20ＭＦＩ、social impacts to 59,032 loan users
3 ＤＭＦ impacts to GLP is 1.8％、 to Total Loan users is 2.1%
4 ＤＭＦ Average Lending rate is 10.9％
■Assumptions ・Data from MIX Market and Asset Management Report（as of Feb. 23 2013）
・Most recent data is used. i.e.FY2011 data is included
■ Daiwa Microfinance Fund Impact & financial return 2.1% as of 2013/3/31
Name of MFI
Country
&
Currency
Gross Loan
portfolio
amount
lennding from
DMF
DMF
contribu
shion
Number of
borrowers
Average
borrowing
Impact of
DMF
Lending
rate
Annual
revenuew to
DMF
1 Access Bank Azerbaijani manat 527,783,179 4,000,000 0.76% 126,446 4,174 958 8.5% 340,000
2 AzerCredit Azerbaijani manat 52,787,700 863,000 1.63% 59,751 959 900 10.5% 90,615
3 FORUS Russian Ruble 53,302,188 2,000,000 3.75% 11,476 4,645 431 11.9% 237,800
4 Inicjatywa Mikro Polish Zloty 10,200,000 143,000 1.40% 1,769 9.2% 13,199
5 PRASAC Thai Baht 214,589,000 370,000 0.17% 134,146 1,600 231 8.4% 30,969
6 TPC Cambodia Riel 48,342,250 2,000,000 4.14% 122,077 396 5,051 12.2% 243,000
7 Ujjivan Indian Rupee 172,101,702 5,600,000 3.25% 941,338 183 30,601 13.1% 734,720
8 Camesa Mexico Mexican Peso 81,107,918 600,000 0.74% 299,308 271 2,214 10.8% 64,500
9 NBD Bank Russian Ruble 275,400,000 10,200,000 3.70% 3,241 11.1% 1,136,280
10 FINCA Russia Russian Ruble 33,569,563 1,560,000 4.6% 11,281 2,976 524 11.6% 181,584
11 Banco Popular (BancoHonduras Lempira 49,900,176 1,148,000 2.3% 16,659 2,700 425 14.0% 160,720
12 Crear Arequipa Peruvian Nuevo Sol 238,276,438 7,000,000 2.9% 134,781 1,768 3,959 9.5% 662,900
13 FINCA Azerbaijan Azerbaijani manat 153,545,297 3,344,813 2.2% 139,956 1,121 2,984 10.0% 334,481
14 Genesis Guatemala Quetzal 84,288,141 2,345,000 2.8% 157,465 535 4,383 9.0% 211,050
15 Xac Bank Mongolia To uguruku 414,411,403 7,024,000 1.7% 77,345 5,083 1,382 12.0% 842,880
16 EDPYME Solidaridad Peruvian Nuevo Sol 35,387,501 555,000 1.6% 23,502 1,506 369 10.5% 58,275
17 Coocique Costa Rica Colon 110,800,000 2,975,000 2.7% 17,072 4,051 734 12.3% 365,925
18 Bank Andara Indonesian Rupiah 18,200,000 299,000 1.6% 165 10.3% 30,648
19 EDPYME Raiz Peruvian Nuevo Sol 179,952,021 501,000 0.3% 96,009 1,874 267 10.4% 52,254
20 Popayan Colombian Peso 346,185,217 3,000,000 0.9% 417,479 829 3,619 9.1% 273,300
total 3,100,129,694 55,527,813 1.8% 2,791,266 941 59,032 10.9% 6,065,100
total-4-9-18 2,796,329,694 44,885,813 1.6% 2,786,091 760 59,032 10.9% 4,884,974

6. 66
17%
32%
18%
3%
30%
55%
7%
7%
4%
27%
Billions of dollars, as of the end of 2009
Japan* 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 17.4
Life insurance and pension fund reserves 4,228 27.0 3,615 53.9 2,241 33.5 2,126 39.5 13,191 29.6
Shares and other equity 1,104 7.1 744 11.1 523 7.8 879 16.3 13,972 31.4
Mutual funds and securitis other than shares 1,047 6.7 218 3.3 1,315 19.7 504 9.4 8,135 18.3
Others 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 31.6
Net 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
Others
29%
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.