Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2022/23 Earnings Presentation
34 slides from Nomura's earnings presentation, Feb 6, 2023
Slide 1: Consolidated Results of Operations, Third quarter, year ending March 2023
Consolidated Results of Operations Third quarter, year ending March 2023 (US GAAP) Nomura Holdings, Inc. February 2023
Slide 2: Outline
Outline Presentation 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) Financial Supplement Consolidated balance sheet (p. 17) Valu
Slide 3: Executive summary (1/2)
Executive summary (1/2) FY2022/23 3Q highlights Income before income taxes: Y83.6bn (+165% QoQ); Net income1: Y66.9bn (4.0x QoQ); EPS2: Y21.51(4.0x QoQ) Three segment and segment Other performance improved; ROE3 rebounded to 8.5% – Retail and Investment Management reported significantly stronger res
Slide 4: Executive summary (2/2)
Executive summary (2/2) FY2022/23 1Q – 3Q highlights Income before income taxes: Y126.8bn (-28% YoY); Net income1: Y85.4bn (-24% YoY); EPS2: Y27.44; ROE3: 3.8% Three segment income before income taxes Y94.4bn (-45% YoY) Market uncertainty led to a decline in Retail flow revenue, etc. and a substanti
Slide 5: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2021/22 FY2022/23 FY21/22 FY22/23 3Q 4Q 1Q 2Q 3Q QoQ YoY 1Q-3Q 1Q-3Q YoY Net revenue 351.0 340.8 299.0 318.0 393.7 24% 12% 1,023.1 1,010.6 -1% Non-interest expenses 270.9 291.3 287.3 286.5 310.1 8% 14% 846.0 883.9 4% Income (l
Slide 6: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2021/22 FY2022/23 FY21/22 FY22/23 3Q 4Q 1Q 2Q 3Q QoQ YoY 1Q-3Q 1Q-3Q YoY Net revenue Retail 87.4 70.5 71.4 72.5 81.0 12% -7% 257.5 224.9 -13% Investment Management 40.1 10.1 7.6 26.2 57.0 118% 42% 137.9 90
Slide 7: Retail
Retail Net revenue and income before income taxes (billions of yen) FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 87.4 70.5 71.4 72.5 81.0 12% -7% Non-interest expenses 69.3 65.3 66.5 67.0 67.8 1% -2% Income before income 18.0 5.2 4.9 5.5 13.3 142% -26% taxes Net revenue (billions of yen) 1
Slide 8: Retail: Total sales increased as we provided detailed consulting
Retail: Total sales increased as we provided detailed consulting timed to market changes Total sales1 Discretionary 6,000.0 investments, Insurance products 5,000.0 Investment trusts 4,000.0 3,000.0 Bonds 2,000.0 Stocks 1,000.0 0.0 FY2021/22 FY2022/23 (billions of yen) 3Q 4Q 1Q 2Q 3Q Stocks 2,720.1 2
Slide 9: Retail: KPI summary
Retail: KPI summary Net inflows of recurring revenue assets1 Recurring revenue assets and recurring revenue2 (billions of yen)n While investment trusts reported outflows from corporates, other (trillions of yen) (billions of yen) services contributed Recurring revenue assets Recurring revenue (rhs)
Slide 10: Investment Management
Investment Management Net revenue and income (loss) before income taxes (billions of yen) FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 40.1 10.1 7.6 26.2 57.0 118% 42% Non-interest expenses 19.8 18.9 19.3 20.6 23.7 15% 20% Income (loss) before 20.4 -8.8 -11.7 5.6 33.3 6.0x 64% income taxes
Slide 11: Investment Management: Ongoing inflows into core investment trusts and alternatives
Investment Management: Ongoing inflows into core investment trusts and alternatives Assets under management (net)1 (trillions of yen) Investment advisory and international businesses, etc. Investment trust business 80.0 68.5 67.9 65.6 64.8 64.7 60.0 19.6 19.3 18.1 18.1 17.7 40.0 48.8 48.6 47.5 46.7
Slide 12: Wholesale
Wholesale Net revenue and income (loss) before income taxes2 (billions of yen) FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 202.7 194.9 199.0 205.5 189.1 -8% -7% Non-interest expenses 161.9 157.9 173.7 185.3 190.9 3% 18% Income (loss) before 40.8 37.0 25.3 20.2 -1.9 - -income taxes CIR 80%
Slide 13: Wholesale: Global Markets
Wholesale: Global Markets Net revenue (billions of yen) 200.0 175.3 177.5 163.8 158.2 154.3 150.0n FI: Others n FI : Macro Products2 100.0 n FI: Spread Products3 n EQ: Others4 50.0n EQ: Equity Products5n EQ: Execution Services6 0.0 FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Fixed Income 88.0 80.1 11
Slide 14: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue (billions of yen) +24% QoQ 38.9 36.7 34.8 -11% YoY 28.0 23.7 Finance, Solutions, etc. Advisory FY2021/22 FY2022/23 3Q 4Q 1Q 2Q 3Q Key points n Net revenue: Y34.8bn (+24% QoQ; -11% YoY) - Advisory business remained robust; M&A completed transactions contribut
Slide 15: Non-interest expenses
Non-interest expenses Full year Quarter (billions of yen) (billions of yen) 1,500 400 Other 1,171.2 1,137.3 291.3 310.1 287.3 286.5 Business development 1,000 270.9 expenses Occupancy and related depreciation 200 Information processing and communications 500 Commissions and floor brokerage Compensat
Slide 16: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Mar 2022 Sep 2022 Dec 2022 n Total assets Y43.4trn Y51.5trn Y49.2trn n Shareholders’ equity Y2.9trn Y3.2trn Y3.1trn n Gross leverage 14.9x 16.3x 15.7x Net leverage1 9.1x 9.7x 9.3x n Level 3 assets2 (net) Y0.8trn Y0.9trn Y1
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Dec 31, Increase 2022 2022 (Decrease) Assets Total cash and cash deposits 4,064 4,110 46 Total loans and receivables 5,001 5,501 500 Total collateralized agreements 16,876 20,125 3,248 Total trading assets and private 1
Slide 19: Value at risk
Value at risk1 Definition 95% confidence level 1-day time horizon for outstanding portfolio Inter-product price fluctuations considered From April 1, 2022, to December 31, 2022 (billions of yen) Maximum: 6.8 Minimum: 2.7 Average: 4.6 (billions of yen) FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar
Slide 20: Consolidated financial highlights
Consolidated financial highlights Full year (billions of yen) 200 8% 153.1 5.7% Net income (loss) 143.0 150 6% attributable to Nomura 5.1% Holdings, Inc. ("NHI") shareholders 100 4% ROE (%) 50 2% 0 0% FY2020/21 FY2021/22 Net revenue 1,401.9 1,363.9 Income (loss) before income taxes 230.7 226.6 Net i
Slide 21: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Revenue Commissions 376.9 332.3 82.6 75.2 70.4 68.2 77.5 Fees from investment banking 108.7 149.6 46.0 34.0 27.3 24.2 33.8 Asset management and portfolio service fees 230.0 270.0 69.9 68.9
Slide 22: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Stock brokerage commissions 262.3 236.4 57.3 53.1 48.4 48.5 52.6 Commissions Other brokerage commissions 14.3 18.0 4.8 5.5 4.8 4.7 4.3 Commissions for distribution of investment trusts 68.8
Slide 23: Income before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes1 Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Retail 92.3 59.2 18.0 5.2 4.9 5.5 13.3 I
Slide 24: Segment Other
Segment “Other” Income (loss) before income taxes1 Full year Quarter (billions of yen) 80 59.5 40 15.8 14.9 1.7 2.1 0 -3.9 -40 -28.5 -80 FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic -11.5 -9.9 -1.1 -8.4 -9.8 0.1 -1.5 hedging transactions Realized gain (l
Slide 25: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q QoQ YoY Commissions 187.7 138.5 36.5 27.8 26.0 26.2 31.2 19.2% -14.6% Of which, stock brokerage commission 92.6 67.4 17.6 14.4 11.8 12.2 13.4 9.7% -23.8% Of which, commissions for distr
Slide 26: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 Other 126.6 125.0 122.1 122.1 119.4 117.7 117.5 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2020/21 FY2021/22 FY2021/22 FY2022/23 Ma
Slide 27: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 Full year Quarter Corporates Individuals Corporates Individuals 1,500 1,500 1,200 1,200 900 900 600 600 300 300 0 0 -300 -300 -600 -600 -900 -900 -1,200 -1,200 FY2021/22 FY2022/23 (billions of yen) FY2020/21 FY2021/22 (billions of yen) 3Q 4
Slide 28: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar Dec Mar Jun Sep Dec Accounts with balance 5,329 5,348 5,362 5,348 5,354 5,359 5,352 Equity holding accounts 2,927 2,955 2,949 2,955 2,958 2,957 2,950 NISA accounts opened (accumulated)1 1,791 1,589
Slide 29: Investment Management related data (1)
Investment Management related data (1) Full year Quarter FY2021/22 FY2022/23 (billions of yen) FY2020/21 FY2021/22 QoQ YoY 3Q 4Q 1Q 2Q 3Q Business revenue 111.9 119.9 31.5 31.1 30.7 29.9 31.4 4.9% -0.4% Investment gain/loss 51.2 28.1 8.6 -21.1 -23.1 -3.7 25.6 - 3.0x Net revenue 163.2 148.0 40.1 10.1
Slide 30: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1, 2 Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Investment trusts business 2,753 1,236 250 372 478 137 -100 of which ETFs 2,241 683 -15 383 323 -5 -347 Investment advisory and int
Slide 31: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 691.4 703.1 202.7 194.9 199.0 205.5 189.1 -8.0% -6.7% Non-interest expenses 627.1 628.6 161.9 157.9 173.7 185.3 190.9 3.0% 17.9% Income (loss) before income taxes 64.
Slide 32: Number of employees
Number of employees FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar Dec Mar Jun Sep Dec Japan 15,330 15,213 15,299 15,213 15,503 15,384 15,282 Europe 2,769 2,820 2,817 2,820 2,811 2,869 2,908 Americas 2,152 2,257 2,181 2,257 2,252 2,358 2,392 Asia and Oceania1 6,151 6,295 6,259 6,295 6,407 6,520 6,6
Slide 33: Disclaimer
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, s
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com