January 23, 2017

Press Release

SBI Holdings, Inc. Daiwa Securities Group Inc.

Attention

This is an unofficial translation of a press release announced on January 23, 2017 by Daiwa Securities Group Inc. The original press release is in Japanese.

Notice Regarding the Execution of Capital and Business Alliance Agreement between

Daiwa Securities Group and the SBI Group on Defined Contribution Pension Plan Business

The agreement of capital and business alliance was executed between the group of Daiwa Securities Group Inc. ("DSGI") and its subsidiary, Daiwa Securities Co. Ltd. ("DS") (collectively "DS Group") and SBI Holdings, Inc. ("SBIHD"), and its consolidated subsidiary, SBI SECURITIES Co., Ltd. ("SBISEC") and SBI Benefit Systems Co., Ltd. ("SBI Benefit") (collectively "SBI Group").

Also, DSGI made a decision to acquire a part of shares in SBI Benefit held by the consolidated subsidiary companies of SBIHD ("Seller").

  1. Circumstances and Purpose of Collaboration

    From April 2015, DS Group made a start for further breakthrough, holding up "Passion for the Best" 2017, its new Medium-term Management Plan. In this plan, DS Group adopts the basic policy, "In response to the full-fledged start of an era of transition from savings to investment, attract customers with the industry's top quality, and become their best partner". DS Group is now working on the establishment of the platform which provides optimal products and comfortable information access in order to be the customer's first choice securities group among wide range of investors including the young and the retired.

    Meanwhile, based on its philosophy of "Customer-centric Principle," the SBI Group has offered a variety of innovative and convenient financial products and services through the Internet centering around the working generations of 20's to 40's, since its foundation. In 2001, the SBI Group established SBI Benefit which is Japan's only operational management institution that conducts management-related services, with a defined contribution pension plan record keeping system developed on its own. By this means the SBI Group has actively promoted, developed, and revitalized the Japanese defined contribution pension system and market.

    Both groups consider expansion of the qualified subscriber for iDeCo (Individual-type defined contribution pension plan) as a good opportunity to promote the slogan of "transition from savings

    to investment". This time, the SBI Group, which has strong track record to acquire new iDeCo customers, and DS Group, which offers wide variety of financial services, will strategically collaborate in iDeCo business to improve customers' convenience and the quality of services, and strive to further increase SBI Benefit's corporate value. In addition, DSGI made a decision to acquire a part of shares in SBI Benefit in line with capital and business alliance.

  2. Contents of Business Collaboration

    DS will launch new iDeCo plan with SBI Benefit as a record keeper. Going forward, both groups will investigate and prepare contents for the new plan, and aim to launch it from April 2017.

  3. Contents of Partial Acquisition of Shares

    DSGI will acquire a part of shares of SBI Benefit, which the Seller owns (i.e. 15,364 shares corresponding to 33.4% of the total number of shares outstanding as of September 30, 2016).

  4. Schedule

    Monday, January 23, 2017

    DSGI

    By March 31, 2017 (TBA)

    From April 1, 2017 (TBA)

    • Execution of contract of capital and business alliance between the SBI Group (SBI HD, SBISEC, and SBI Benefit) and DS Group (DSGI and DS)

    • Execution of share purchase agreement between Seller and

    • Execution of outsourcing contract between SBI Benefit and DS.

    • Closing of the partial acquisition of shares in SBI Benefit by DSGI

    • Start of the new iDeCo plan by DS

  5. Overview of the Company

（Overview of SBIHD） （URL：http://www.sbigroup.co.jp/）

Company Name

SBI Holdings, Inc. （security code：8473）

Head Office

1-6-1, Roppongi, Minato-ku, Tokyo

Representative

Representative Director, President & CEO Yoshitaka Kitao

Business

Control and management of SBI Group through share ownership

Capital

81,681 million yen（as of 30 September 2016）

（Overview of SBI Benefit） （URL：URL：https://www.benefit401k.com/）

Company Name

SBI Benefit Systems Co., Ltd.

Head Office

1-6-1, Roppongi, Minato-ku, Tokyo

Representative

President Shinji Matsui

Business

Operates record keeping for defined contribution pension plan

Capital

450 million yen（as of 30 September 2016）

（Overview of DSGI） （URL：http://www.daiwa-grp.jp/）

Company Name

Daiwa Securities Group Inc.（security code：8601）

Head Office

1-9-1, Marunouchi, Chiyoda-ku, Tokyo

Representative

President and CEO Takashi Hibino

Business

Holds, manages and controls shares of companies engaged in businesses including the financial instruments and exchange

business

Capital

247,397 million yen（as of 30 September 2016）

End

Daiwa Securities Group Inc. published this content on 23 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 January 2017 00:05:10 UTC.

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