Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2024/25 Earnings Presentation
34 slides from Nomura's earnings presentation, October 2024
Slide 1: CFO remarks on second quarter results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. Let me now turn to our financial results for the second quarter of the fiscal year ending March 2025 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Outline
Outline Presentation Financial Supplement OMURA * Executive summary (p. 2-3) = Overview of results (p. 4) * Business segment results (p. 5) = Wealth Management (p. 6-8) = Investment Management (p. 9-10) * Wholesale (p. 11-13) * Noninterest expenses (p. 14) * Robert financial pasion (p 15) Consotdate
Slide 3: Executive summary: quarterly results
Groupwide net revenue increased 6 percent quarter on quarter to 483.3 billion yen. Income before income taxes grew 29 percent to 133 billion yen. Net income was 98.4 billion yen, representing a 43 percent increase over last quarter. As you can see, we had a very strong quarter. Income before income
Slide 4: First half results summary
The bottom left show net revenue of 937.8 billion yen, 31 percent higher than the first half of the previous year. Income before income taxes grew 129 percent to 235.9 billion yen, while net income increased by 186 percent to 167.3 billion yen. EPS was 54.58 yen and ROE was 10.1 percent. The bottom
Slide 5: Second quarter performance by segment
In Wholesale, all business lines—Fixed Income, Equities, and Investment Banking—and all regions reported stronger revenues compared to the same period last year, underscoring progress in diversifying our revenue sources. As revenues grew 30 percent, we controlled costs to deliver income before incom
Slide 6: Business segment results
NOMURA Business segment results Net revenue and income (loss) before income taxes (hmera atyer) Frecwes Freeaizs frausae = fyaueds a 2 © @ Oo ” wo Ow Net revwnue Wealth Management 5 «1026 «1088 tO 1967 nan 12% 10 mT Pad irestmect Maragenert Cal BS 4360 877 BA 1 as ne 10.6 as Whole rate 241 M70 2 a *
Slide 7: Wealth Management results
Wealth Management net revenue increased 2 percent to 116.7 billion yen and income before income taxes grew 7 percent to 45.3 billion yen. Income before income taxes was the highest in nine years since the quarter ended June 2015. During this quarter, we witnessed a sharp market adjustment in early A
Slide 8: Total sales by product
Please turn to page seven for an update on total sales by product. Total sales declined 900 billion yen to 5.9 trillion yen, but this is because last quarter included a tender offer of over 1 trillion yen. Excluding that, sales of stocks increased from last quarter. We executed multiple primary tran
Slide 9: Wealth Management KPIs
Page eight shows KPIs mostly trending above this fiscal year’s targets. The top left shows net inflows of recurring revenue assets of 438.3 billion yen, representing a further gain from the robust prior quarter. As a result, net inflows of recurring revenue assets for the six-month period were 826.2
Slide 10: Investment Management results
Please turn to page nine for Investment Management. Net revenue was up 18 percent at 56.1 billion yen, while income before income taxes grew 38 percent to 31.9 billion yen. As you can see in the bottom left, stable business revenue was 39.4 billion yen, marking a record high for quarterly revenues s
Slide 11: Assets under management and net inflows
As you can see on the top left, assets under management at the end of September stood at 88.8 trillion yen, down from last quarter due to market factors, but the quarterly average was roughly the same. The bottom left shows another quarter of net inflows of 1.1 trillion yen, 650 billion yen of which
Slide 12: Wholesale overview
Please turn to page 11 for an overview of Wholesale performance. Net revenue increased 8 percent to 263.4 billion yen. As shown on the bottom left, Global Markets revenues grew 6 percent while Investment Banking revenues were up 14 percent. At the same time, Wholesale expenses declined 3 percent. Al
Slide 13: Global Markets
Global Markets net revenue increased 6 percent to 221.1 billion yen. This quarter saw a spike in volatility on the back of uncertainty over the US economy, a selloff in tech stocks and geopolitical risks. Amid this environment, we were able to provide liquidity to the market and monetize robust clie
Slide 14: Investment Banking
Please turn to page 13 for Investment Banking. Net revenue increased 14 percent to 42.3 billion yen. In Japan, we supported several corporate actions aimed at boosting corporate value, resulting in record high revenues since the fiscal year ended March 2017 when comparisons are possible. By product,
Slide 15: Non-interest expenses
Please turn to page 14 for non-interest expenses. Groupwide expenses were roughly flat at 350.3 billion yen. Compensation and benefits were unchanged at 184.7 billion yen. Although bonus provisions increased in line with performance, as I mentioned, severance-related expenses declined from last quar
Slide 16: Financial position
Please turn to page 15 for an update on our financial position. The table on the bottom left show Tier 1 capital of 3.4 trillion yen, a decrease of approximately 150 billion yen from the end of June. In addition, risk -weighted assets declined by 900 billion yen to 19.2 trillion yen, resulting in a
Slide 17: Earnings quality and outlook
At that time, Wholesale accounted for 60 percent of three segment income before income taxes, but now earnings are well balanced across all three divisions, giving us a higher quality ROE. Recurring revenue in Wealth Management and business revenue in Investment Management, both of which are sources
Slide 18: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet theo ef ye Mar31, Sep 0, Increase Mar3t, Sep), increase 2a24 2024 __ Decrease) maze 224 (Decwase) Assets Linbdines: Total cash and cash deposits 5155 5.780 as ‘Shor term barrowngs 1065 asT 158 Tota payables and deposts: 649 LAlL] ee Tetad loans a
Slide 19: Value at risk
Value at risk = Defintion = From Aget 1, 2024. to September 30, 2024 (béfions of yer) ~ 96% confidence level ~ Mexinum 6.8 ~ 1-day time horizon for outstanding portfolio Mirenum 4.5 Inmer-product pnee fluctuabons considered Average 46 (eens ef ye) Fy20en23 «Foz = F224 Fy 2004025 War Mar Sep Dac Mar
Slide 20: Consolidated financial highlights
NOMURA Consolidated financial highlights (eons ef yen) 9B * " one saa o% ~ oe ™ ' ' o% ryeoecs «0 ” 2 Nat revenue Limes 15620 wre 402 +t ane a3 Wcorres (Ieee) Galore oncorree Lae ace 1485 ar38 my "7 i 12s au Nat income Foss) atribetatie to Norrure Meldinge, ire: TAM) ee me M2 we we ae ee Total Ned s
Slide 21: Consolidated income
Consolidated income Ih@ove ef peri Fronzwvae Frames Fvawsvae ©" > = : oe ~ — Revenue Comméasions 2798 wat 9 asT 67 28 014 Fees fom emestmect banking: 132 733 36 2 433 aa n3 Asset management and portolin rence fees ar 302 67 ms u2 909 Net gaty en xchrg 563 en 166 1251120 NTT Gain foas) of private equ
Slide 22: Main revenue items
Main revenue items NOMURA (none of yen Fy202324 Fr202425 Feauiaas Fy2az26 “2a Ey rr 1a 20 Comenissions: Stack Bok elage Cormresaioes 190.8 27 S63 64 mm? a4o 69 Other trok erage commissions 79 156 40 39 3a at 44 En ae m3 HR “uo ont 370 3S Other 41.0 485 126 123 145 Ee 155 Total me mat any) 67) tz Fee
Slide 23: Income before income taxes by segment and region
Consolidated results: Income (loss) before income taxes NOMURA by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes (eons ef yen FY202024 Pranab Fy202223 FY202024 2 0 2 10 20 ‘Waadtt Mi us wT 230 ngs 38a 23 2 breastimart Man. 435 02 232 155
Slide 24: Segment “Other”
Segment “Other” Income (loss) betore income taxes call Ld 0 Net gam (loss) related to econarec hedging transactions Realized gan Jecas) or erewalinerts in aquly secures hed for opersing purposes: Equity in asrrenge of Skates Conperata hams Others Income (lows) before income tees Fy2aza23 FyYon2w24 “
Slide 25: Wealth Management related data (1)
Wealth Management related data (1) NOMURA Pumereet Framyet Fromees Fremep rraeaze “YR — a rm Ses Commrexaiens ws ms oo) 04 tN Of ach, stock brokerage comermmnon oF woz = wo ot wr 7 ay Sow patoraatl painreyoeialeateiaa le 2 sa re ee Te et ee) Sues creat Crt) 143 “4586 ONS Fees trom nwesimeet barvang
Slide 26: Wealth Management related data (2)
Wealth Management related data (2) Wealth Management client assets (aves ot yen) ecitter i Fi ‘cregn Iwesment 120 4222 = Bore unveaternnt = Stock investment. 0 trusts Oomestc sends 40 =Foregn currency tongs sEquites . Fy20z23 Fy20zN24 Mor Nor Sep Dec Mar cu Sep Equties 760 m25 v7 879 ues 006 “6 Fona
Slide 27: Wealth Management related data (3)
Wealth Management related data (3) Net inflows of cash and securties* ee ewan Managienaet total eRetal ty 1273 m0 Lad . l . J | em , 400 200 Fy2t223 | FY20aWM Wealth Management total 720 1273 Retail ant? 194 745 Infows of cach and secuntias* 4,623 5,905 1 Cat no anand Alot re carted sock pon Seam no
Slide 28: Wealth Management related data (4)
Wealth Management related data (4) Number of accounts (iooanarnde) Pyaz23 FY@UZwe FY 2OEN2E Fy2c2azs Mor vor Sep. Ore Mor mm Sep Accounts with balance $399 5.496 5.396 5.448 5A 554 S888 Equty hobsing accounts 2999 2972 2982 29 2972 2378 355 NSA accounts opened! 1622 1780 168 1758 1,783 1745 1763 Oni
Slide 29: Investment Management related data (1)
Investment Management related data (1) Net revenue and income (loss) before income taxes (heave ef pei Fraczzz) | F204 27 2 4a 1 2 oa YoY Guanesa revere 1207 172 m4 3 me 334 m4 om 79% Investment gantoss. 19 69 wt 46 66 66 wr wh 42s Net revenue 1286 644 454 mS ae art a1 TI uN Non-merest expenses: a6
Slide 30: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business I Fyoene Fv2tewes | FY202304 Fy2024/25 az x2 4a 1a 2a Investment trusts busness 16 1845 476 aa m0 698 “ss of which ETFs 250 473 me 131 26 145 sa Investment sdvsory and nemstona a6 198 16 365 uy 256 A Total tat ascaet info 70 3
Slide 31: Wholesale related data
Wholesale related data Net revenue and income (loss) before income taxes theo ef ye Prauzv2t Pyane26 Fyauz223 | FYonzv24 20 30 0 10 20 QQ YeY Net revenue: 4 5.1 Eel 21r@ 242 mae 24 Ud an Non deterest 43.0 22 58 ™o 236 qr 216.4 an was Income (Joss) betore mcame taxes. a4 6.9 63 ae 206 au 5) ess Su Br
Slide 32: Number of employees
Number of employees Pyauz223 Pyau2e26 Ww Dec law Jon Sep Japan 15,131 14870 14595 487) 85,215 15S Europe 2397 3 2903 3,005 3.069 3,057 an Amencas 2307 2400 2406 2468 2840 2.450 asm Ama and Oceania 6320 6487 642 6483 6.487 6.622 6704 Total 26.776 man 79 Ms 6H at
Slide 33: Disclaimer
Disclaimer © This Gocument & produced by Nomura Moksings, inc. (Nomura) © Nothing in fs document shat Ge considered a an offer Io 968 oF soRc Rabon of an cer Io buy arty Security, Commodity OF OTner InkumEnt moudng secures tssued Dy Nomura or any affiate thereot Ogters t sef, sales, solicitations to
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com