Medium-term Management Plan

The Group has steadily implemented various initiatives of its plan formed for the period from April 2008 through the end of March 2011. However, we suspended the pursuit of numerical targets reflecting turmoil in global financial markets, triggered by the Lehman Shock in autumn 2008, and shifted management focus on measures to respond to emergency conditions in the market. We subsequently lifted the emergency mode partly because we were able to post profits in the year ending March 2010 despite the current difficult business environment. In addition, we have formed a new medium-term business plan to achieve further growth of the Group through the period ending 2013, when Okasan will celebrate its 90th anniversary.

In the new medium-term business plan, keeping the basic policy of "Do all we can for each and every one of our clients" intact, the Group will focus on improving service quality. Also, the Group aims to establish a business platform that delivers stable growth, regardless of any operating environment, and enhance its presence in the market by providing the highest-quality products, advice and services. We would like to establish a securities business model tailored to local markets, each with its own particular characteristics.

In parallel with forming the Group's new medium-term business plan, Okasan Securities Co., Ltd., a core member of the Group, formed its own new medium-term business plan, where the core subsidiary, too, aims to be a securities company that provides the highest-quality asset management advice by further strengthening its customer-oriented culture with a focus on providing "optimal investments from a global perspective."

April 2010

Period of the Plan

Three years from April 2010 through the end of March 2013

Basic Group Policies

Management goals on a consolidated basis

ROE: 10% as a long-term target
Net assets: 130 billion yen at the end of the plan period

Important measures to achieve the medium-term business plan

Group management will take initiatives to achieve goals of the medium-term business plan, considering both present conditions and the likelihood of intensifying competition in the future. However, the Group will focus on improving the quality of service, with secondary consideration to the achievement of numerical targets. In addition, the Group will be guided by the basic management policy of "Do all we can for each and every one of our clients" and implement such policy in each business unit of Group companies. Details of targets in each subsidiary are as follows:

[Okasan Securities Co., Ltd.]

(1)

To upgrade the products and advice on global markets, including Japan

-- To establish a platform that is capable of providing products and advice from a global perspective, namely:

*	To strengthen the global strategist function, flagshipped by the investment information division, and the research function in offshore markets, particularly in Asia;
*	To enhance ability to develop products, including foreign securities, foreign bonds and investment trust funds.

(2)

To expand the client base in new customer tiers and strengthen the business foundation

-- Committed to be "the most trusted house and the best partner to our clients with regard to asset management advice", namely:

*	In the retail divisions	:	To ensure that our services fully reflect the interests of customers, and operate each branch consistently with marketing strategies in each region. To be named in the retail sector as "the best house to trade with".
*	In the corporate divisions	:	To upgrade expertise in businesses such as underwriting and widen the product line. To promote flagship branches with regard to corporate businesses in branches.

[Okasan Online Securities Co., Ltd.]

(1)

To improve the attractiveness and value of client service

-- Outstanding high-function service --:

*	To evolve system functionality in a way to meet the various needs of clients and enhance the value of trading tools, i.e. Okasan Net Trader, Okasan RSS, order entry system on the web, and mobile phone access;
*	Introduce a new commission scale that is attractive to clients, with competitive pricing and an incentive scheme in accordance with trading volume.

(2)

To expand the client base to a new customer tier and strengthen the business foundation

-- To make our presence stand out --:

*	To expand the line-up of attractive and value-added products and aggressively introduce new services based on the concept of "materializing the customers' voice;"
*	To enhance the potential of existing active clients and marketing for a new client segment (ex, semi-active investors and corporates), and make our presence stand out as one of the leading houses that specialize in online trading.

[Okasan Asset Management Co., Ltd.]

(1)

Enhance the ability to manage assets and originate products:

*	To provide products that enable investors to invest globally, strategically meet the various needs of investors, and satisfy the expectations of professional investors;
*	To organize asset management systems by functions, to achieve truly competitive management skills by further upgrading the ability of each portfolio manager with organizational support, and to ensure the accountability in portfolio management.

(2)

To strengthen systems that support marketing:

*	To strengthen marketing by upgrading the service level to clients and supporting functions;
*	Reform the personnel system and establish a flexible and dynamic organization via quality management.

[Other common foundations]

(1)

Activation of human resource infrastructure:

*	Continuation of reforms on the overall personnel system, including the introduction of a company independent system by each Group subsidiary;
*	Restructure programs for staff training and career development.

(2)

Innovation in IT infrastructure:

*	To upgrade systems with regard to investment information for the sales front, product information, CRM, and operations. To improve operation and execution systems in the middle- and back-offices. To rationalize administrative work;
*	To apply feedback from on-line trading technologies to the conventional brokerage business.