Nomura Holdings, Inc. · TSE:8604
Nomura — FY2023/24 Q4 Earnings Presentation
34 slides from Nomura's earnings presentation, April 2024
Slide 1: CFO overview of fourth quarter and full year results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the fourth quarter and full year of the fiscal year ended March 2024 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Presentation and Financial Supplement contents
Presentation Financial Supplement e Executive summary (p. 2-3) © Overview of results (p. 4) © Business segment results (p. 5) © Retail (p. 6-8) © Investment Management (p. 9-10) © Wholesale (p. 11-13) Non-interest expenses (p. 14) © Robust financial position (p. 15) © Consolidated balance sheet (p.
Slide 3: Full year results
First, our full year results. As you can see on the bottom left, Group net revenue increased 17 percent year on year to 1,562 billion yen, while income before income taxes grew 83 percent to 273.9 billion yen. EPS was 52.69 yen and ROE for the year was 5.1 percent. The first half of the year kicked
Slide 4: Fourth quarter results overview
Next, please turn to page three for an overview of our fourth quarter results. All the percentage figures I mention from now on refer to quarter on quarter comparisons. Group net revenue increased 11 percent to 445.1 billion yen and income before income taxes grew 17 percent to 92.1 billion yen. Net
Slide 5: Highlights
Highlights (billions of yen, excluding EPS and ROE) 17% 83% 3 AAHE aia jie | & evelie |e ye el elle| els (anne ne nnn alle iie | s ele iie || & aye |e is aa les aya} ayes] 2
Slide 6: Net revenue and income (loss) before income taxes
Net revenue and income (loss) before income taxes 42 BT | ET eT 787 BT fie ax *Additional information on “Other (4Q) ® Lossrelatedto economichedging (¥40m) ® Gainon: ‘to own and: credit relatedto Di (100m)
Slide 7: Retail net revenue and income
Net revenue in Retail grew 6 percent to 108.8 billion yen and income before income taxes increased 21 percent to 38.8 billion yen. Stable recurring revenue reached a record high of 41.8 billion yen partly driven by advisory fees booked each half. Our recurring revenue cost coverage ratio for the qua
Slide 8: Retail sales by product
Total sales jumped 33 percent to 6.2 trillion yen. Sales of equities surged 43 percent to 4.5 trillion yen and sales of secondary stocks grew strongly. Investment trust sales were up 26 percent at 760 billion yen. As shown on the bottom right, we booked inflows into publicly offered funds that inves
Slide 9: Retail KPI progress: recurring revenue assets and clients
Net inflows of recurring revenue assets were 103.5 billion yen, as shown on the top left. Although the corporate client section reported a slowdown in inflows as clients sold to lock in gains, net inflows excluding this were 235.3 billion yen, demonstrating continued strong momentum. Recurring reven
Slide 10: Investment Management net revenue and income
Net revenue increased 12 percent to 43.6 billion yen and income before income taxes grew 14 percent to 17.8 billion yen. As you can see on the bottom left, stable business revenue was 38 billion yen, the highest quarterly revenues since the division was established in April 2021. The asset managemen
Slide 11: Asset management: AUM and net inflows
The top left shows assets under management at the end of March at 89 trillion yen, marking the fifth straight quarter of record highs, and trending well above our March 2025 KPI target of 75.8 trillion yen. On the bottom left you can see net inflows for the quarter of 1.1 trillion yen, of which the
Slide 12: Wholesale net revenue and expenses
Wholesale net revenue grew 17 percent to 254.2 billion yen. The first half of the quarter started off with an optimistic mood among market participants over expectations of rate cuts, but towards the end of the quarter inflation re-emerged and there were growing concerns over geopolitical risks. Ami
Slide 13: Global Markets net revenue
Global Markets net revenue increased 19 percent to 204.4 billion yen. Fixed Income net revenue was up 18 percent at 122.6 billion yen driven by an uptick in market activity in EMEA and the Americas. By product, Macro Products delivered stronger revenue. The Rates business revenues increased in EMEA
Slide 14: Investment Banking net revenue
Net revenue grew 10 percent to 49.8 billion yen, which is the best quarterly revenue performance since the year ended March 2017 when comparisons are possible. All three international regions booked stronger revenues. Although Japan slowed from a particularly strong prior quarter, revenues remained
Slide 15: Non-interest expenses
Groupwide non-interest expenses increased 10 percent to 353 billion yen. Compensation and benefits edged up 4 percent to 177.1 billion yen. Although bonus provisions were down, the increase was due to the higher deferred compensation I mentioned earlier. Other expenses totaled 57.9 billion yen. This
Slide 16: Financial position and conclusion
The table on the bottom left shows Tier 1 capital of 3.5 trillion yen and risk-weighted assets of 19 trillion yen, giving a Tier 1 capital ratio of 18.2 percent and a common equity Tier 1 ratio of 16.2 percent. As such, our financial position remains robust. That concludes the overview of our fourth
Slide 17: Financial Supplement
Financial Supplement 16
Slide 18: Consolidated balance sheet
Consolidated balance sheet (billions of yen) Assets iabilte Total cash and cash deposits ‘Short-term borrowings Total payables and deposits Total loans and receivables Total collateralized financing Trading liabilities Total collateralized agreements Other liabilit Long-term borrowings: Total tradin
Slide 19: Value at risk
= Definition = FromApril 1, 2023, to March 31, 2024 (billions of yen) — 95% confidence level — Maximum: 6.8 — 1-day time horizon for outstanding portfolio - Minimum: 43 — Inter-product price fluctuations considered — Average: 56 (billions of yen) ‘Frases froma vamos veut EES EaEs . 32 3.0 36 33 Equi
Slide 20: Consolidated financial highlights
Full year Quarter (billions ofyen) (billions ofyen) 200 8% 200 /=——= Net income (loss) attributable to 49 Nomura Holdings, Inc. (NHI") shareholders 100 —e— ROE(%) 50 C) Net revenue 1,335.6 1,562.0 Income (loss) before income taxes 149.5 273.9 Net hice rapreeris to Nomura 928 165.9 14 23 352 50.5 56.
Slide 21: Consolidated income
Full year Quarter (atone of yen roam rama Om Revenue Commissions 279.9 364.1 63.8 8 88.9 85.7 106.7 Fees from investment banking 113.2 173.3 28.0 4 38.6 55.2 48.3 Asset management and portfolio service fees 27 310.2 674 18 76.7 75 84.2 Net gain on trading 563.3 491.6 118.3 115.6 116.6 125.1 134.4 Ga
Slide 22: Main revenue items
Full year Quarter 190.8 2427 413 55.2 58.3 56.4 727 17.9 15.6 40 40 40 3.9 3.8 30.3 56.2 8.0 13.4 14.0 13.4 15.7 41.0 49.5 10.4 10.1 12.6 123 14.5 279.9 3644 63.8 82.8 88.9 85.7 106.7 18.9 45.5 54 45 13.1 17.9 9.9 214 75 54 53 52 A) 9.0 53.9 61.6 11.3 13.6 10.0 21.0 17.0 19.3 38.8 57 76 10.3 84 12.4
Slide 23: Income before income taxes by segment and region
Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter — | Retail 33.5 122.7 98 22.9 29.0 31.9 388 43.5 60.2 16.4 36 23.2 15.6 17.8 Wholesale 29.4 53.9 14.2 21 83 23.0 20.6 Three busit segments total 106.4 236.8 11.9 28.7 60.5 70.5 7A Other 73.4 A
Slide 24: Segment Other
Income (loss) before incometaxes Full year Quarter (billions of yen) 90 73.4 60 474 30 219 457 212 0 65 30 Pranaas rramaat 4000 QQ Net gain (loss) related to economic ing transacti 48 2.0 63 34 89 76 0.0 Realized gain (loss) on investments in equity ities held for operat 28.4 21.0 62 82 00 1.8 1.0 E
Slide 25: Retail results data
Full year Quarter (billions of yen) Commissions 1125 1735 241 413 419 414 49.1 194% 87% Ofwhich, stock ‘ssi 509 802 34 194 188 172 251 = 65% 58% COfwhich, commissions for distribution of investment trusts v2 49 80 B4 135 34 150 145% 87.1% ‘Sales credit 442 59 106 128 149 143 14.0 18% RA% Fees fom in
Slide 26: Retail client assets
Retail clientassets (trillions of yen) wither 160 153.5 1535 140 1333 134.4 135.9 = Foreign investment 122.2 122.2 — trusts 120 "= Bond investment po 100 = Stock investment 80 trusts = Domestic bonds i) 40 "Foreign currency bonds 20 = Equities 0 Equities A z & Foreign currency bonds 53 6.4 53 57 58
Slide 27: Net inflows of cash and securities
Net inflows of cash and securities’ (billions of yen) Full year Quarter "Corporates individuals 1,400 1,200 1,000 800 600 400 200 1 1,400 1,200 000 800 600 400 = .- = 5 0 -200 400 600 800 “Fy2022/23 27 =Caporates #individuals 108 331 756 173 244 26 464 200 352. 357, 1,220 Cash and Incudes Corporate
Slide 28: Number of accounts
Number of accounts (thousends) -Fyzog223 FY2029/28 = FY2002/23 Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,353 5,496 5,353 5,395 5,396 5448 5,496 Equity holding accounts 2,993 2,972 2,993 2,976 2,962 2,964 2972 NISA accounts opened (accumulated)' 1,632 1,780 1,632 1,681 1,699 1,758 1,780 Onl
Slide 29: Investment Management results and AUM
Full year Quarter FY 20238/24 0 een ‘Praeans Pranesat oe te Business revenee 120.7 137.2 33.4 14.0% gain/loss 79 16.9 91 60 W7 56 5.6 1.9% 38.7% Net revenue 128.6 154.1 378 26.5 451 38.9 43.6 11.8% 15.1% Non-interest expenses 85.1 93.9 215 22.9 21.9 233 258 10.5% 20.1% Income (loss) before income ta
Slide 30: Asset inflows/outflows by business
Asset inflows/outflows by business* Full year Quarter mene tee Prawns Frat La = T| :- | | 1° Investment trusts business 156 1,845 358 649 475 60 780 of which ETFs -250 473 221 42 266 131 296 Investment advisory and 5 F int 2 916 1,915 134 1,064 118 385 MI Total net asset inflow -760 3,760 492 1,713
Slide 31: Wholesale results and revenue breakdown
Full year Quarter (billions of yen) ee ee ime hee eee Net revenue 178.8 190.9 204.1 217.0 17.2% 42.1% Non-interest expenses 743.0 8122 193.1 188.7 195.8 194.0 233.6 20.4% 21.0% Income (loss) before income taxes 294 53.9 142 241 83 23.0 20.6 10.4% - Breakdown of Wholesale revenues Full year Quarter (
Slide 32: Number of employees
Japan 15,131 14,870 15,131 15,382 15,158 14,996 14,870 Europe 2,937 3,053 2,937 2,971 2,993 3,015 3,053 Americas 2,387 2,440 2,387 2,426 2,486 2,458 2,440 Asia and Oceania’ 6,320 6,487 6,320 6,465 6.492 6,449 6,487 Total 26,775 26,850 26,775 27.244 27,129 26,918 26,850 1. Inches Powai office in Indi
Slide 33: Disclaimer
This document is produced by Nomura Holdings, Inc. (“Nomura”). Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to sell, sales, solic
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com