Nomura Holdings, Inc. · TSE:8604

Nomura — Q2 FY2007 Earnings Presentation

39 slides from Nomura's earnings presentation, November 2006

  1. Slide 1: Financial Results for Q2 FY2007 (US GAAP)

    2007 3 2 (US GAAP) 2006 10 1

  2. Slide 2: 2

    2 2

  3. Slide 3: Contents

    „ 2 (P4) „ ROE (P13) „ 2 (P5) „ (P14) „ (P16) „ (P6) „ (P18) „ (P7) „ (P20) „ (P8) „ (P21) „ (P9) „ ( ) (P23) „ (P10) „ (P24) „ ( )(P11) „ / (P25) „ (P26) „ (P30) „ (P31) „ 2 (P34) „ (P35) „ (P36) „ (P37) „ (P38) 3 3

  4. Slide 4: Consolidated results and ROE

    2 ‡ 2,510 22 8 731 2.2 38 435 2.2 29 ROE* 8.3 * 10 ** ROE 500 10 10 300 140 30% 359.8 36.3 36.3 25.4% 400 120 9.9 25% 209.6 325.7 22.1% 200 187.1 23.0 300 272.6 40.7 2.8 100 2.8 251.0 20% 21.6 0.1 205.9 31.3 117.6 82.6 16.8 80 200 386.4 231.8 31.3 73.1 13.1% 15% 100 282.2 5.3 128.6 255.7 60 219.8 20

  5. Slide 5: Income by quarter

    2 ‡ 30 2,557 22 16 977 79 20 10 10 386.4 250 231.8 400 1.0 6.2 18.1 • P22 • 80.1 200 282.2 77.6 300 18.4 P23 35.3 31.1 255.7 14.6 219.8 209.8 150 23.3 101.2 23.9 15.4 17.6 5.7 200 6.9 12.1 17.0 20.5 115.2 44.5 128.4 18.8 60.9 97.7 29.7 100 81.5 4.3 4.7 11.1 77.7 68.9 66.0 54.4 4.7 48.5 9.1 5.2 9.8 4

  6. Slide 6: Segment results: net revenue and income

    100 100 945 11 7 282 34 32 9 6 1 77.7 ‡ 33 188 ‡ * 15 239 * P26 10 10 500 150 446.5 136.7 123.6 400 105.6 101.4 • 305.8 304.4 94.5 100 300 249.3 P26 197.2 • P27 200 74.1 • P28 50 • P29 51.4 • 2 P34 100 41.4 42.5 79.5 81.2 28.2 35.7 0 0 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q 104.1 1

  7. Slide 7: Segment results: retail

    485 30 38 36 ‡ CPI 39 187 ‡ 29 240 10 10 400 160 371.1 350 140 128.4 300 284.1 115.2 120 250 236.0 243.1 100 • 2 200 77.7 80 P34 68.9 • 150 60 P36 157.7 66.0 48.5 60.9 • 100 120.8 40 P37 93.6 14.3 50 31.5 20 60.2 0 0 -3.6 -50 -20 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q 154.0 174.0 1

  8. Slide 8: Segment results: investment banking

    297 58 45 163 2.9 78 ‡ MID IPO 2006 1 9 * 1 ‡ M&A TOB FA * 10 10 120 40 35.3 99.7 100 31.1 29.7 30 • 2 P34 80 75.4 23.3 69.1 70.9 • P35 20.5 60 51.5 17.0 18.8 20 • 16.3 P36 40 29.2 9.1 ( 10 17.2 5.6 20 12.8 0 0 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q 69.1 70.9 75.4 99.7 20.5 35.3 31

  9. Slide 9: Segment results: merchant banking

    445 3.7 6.5 415 4.2 8.9 ‡ ‡ ‡ MBO 530 250 10 10 90 90 80.1 68.2 77.6 60 60 80 44.5 • PE 55.4 / 41.5 P25 30 30 • 10.7 12.1 P30 7.3 6.9 -6.6 9.8 0 0 4.7 0.5 -15.5 -3.0 -15.3 -21.0 -30 -30 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q -6.6 10.7 7.3 68.2 6.9 80.1 -15.5 12.1 44.5 267% 548% 8.6

  10. Slide 10: Segment results: other

    239 35 55 111 2.1 2.4 23 * ‡ ‡ 6 4,265 1.3 * ‡ 6 6 797 2,470 * ‡ *9 10 10 80 30 65.8 23.9 25 60 • 49.0 18.4 20 P31 32 18.1 17.6 • 40.4 40.3 15.4 P33 40 15 11.1 20.6 10 20 6.2 5.7 4.7 5.2 10.0 5 4.0 0.5 0 0 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q 40.4 40.3 49.0 65.8 15.4 18.1 18.4 17

  11. Slide 11: Segment results: asset management

    1,580 2 14 ‡ 5 752 ‡ 19 273 / 10 P18 P19 P25 350 311.3 300 264.7 10 10 256.9 700 250 250 607.8 160.7 600 521.4 200 504.0 180.9 200 142.4 151.1 500 154.5 155.3 158.0 150 138.3 150 400 100 84.5 87.7 79.5 75.2 300 70.0 100 150.5 41.0 41.5 114.4 113.6 41.7 41.9 200 50 39.7 50 43.5 46.2 37.7 33.4 30.3 10

  12. Slide 12: 12

    12

  13. Slide 13: Net income and ROE

    ROE 10 400 20% 15.5% 300 15% 11.1% 304.3 10.1% 200 10% 7.4% 168.0 172.3 6.1% 5.2% 100 119.9 5% 94.7 63.7 0 0% 2007 3 2002 3 2003 3 2004 3 2005 3 2006 3 1H 168.0 119.9 172.3 94.7 304.3 63.7 ROE 11.1% 7.4% 10.1% 5.2% 15.5% 6.1% 85.6 61.3 88.8 48.8 159.0 33.4 816.5 846.4 919.7 962.5 1,083.2 1,114.9 13

  14. Slide 14: Consolidated income statement, half-year

    10 2006 3 2007 3 2002 3 2003 3 2004 3 2005 3 2006 3 1H 1H 140.0 141.6 210.2 222.0 356.3 132.7 145.6 10% 75.3 81.8 87.0 92.3 108.8 38.8 41.3 6% 110.0 79.3 66.2 78.5 102.7 44.9 65.2 45% 162.2 172.3 229.0 201.7 304.2 114.6 103.3 -10% 232.5 -14.4 13.1 7.7 12.3 -0.2 37.3 500.5 368.7 343.3 401.4 693.8 316

  15. Slide 15: Consolidated income statement, quarterly

    10 2005 3 2006 3 2007 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 69.5 45.6 46.3 60.6 55.2 77.5 106.2 117.5 79.6 66.1 -17% -15% 15.4 32.3 18.4 26.1 14.7 24.1 28.6 41.5 14.4 26.9 87% 12% 18.2 19.8 19.3 21.1 19.9 24.9 25.6 32.2 29.7 35.5 19% 42% 53.6 23.1 54.7 70.3 70.8 43.8 90.6 99.0 55.8 47.5 -15% 8% 0.5 -2.1 -

  16. Slide 16: Net revenue by business, half-year

    10 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 1H 1H 48.2 92.1 103.0 153.6 55.4 46.8 -16% ( ) 29.3 45.4 40.2 79.5 22.1 25.6 16% 7.6 12.2 13.0 14.3 5.0 4.7 -6% 30.5 37.3 41.7 85.1 37.1 49.0 32% 26.0 23.2 24.1 23.8 13.0 19.5 50% 141.6 210.2 222.0 356.3 132.7 145.6 10% 24.6 44.7 49.1 57.3 17.3 22.4 30% 3

  17. Slide 17: Net revenue by business, quarterly

    10 2006 3 2007 3 1Q 2Q 3Q 4Q 1Q 2Q 20.8 34.6 53.9 44.2 28.0 18.8 -33% -46% ( ) 8.0 14.2 16.7 40.6 13.8 11.8 -14% -17% 2.8 2.2 6.0 3.3 2.7 1.9 -29% -10% 17.5 19.6 22.4 25.6 25.8 23.1 -11% 18% 6.1 6.9 7.2 3.7 9.2 10.3 13% 50% 55.2 77.5 106.2 117.5 79.6 66.1 -17% -15% 4.9 12.4 17.9 22.1 6.3 16.2 158% 3

  18. Slide 18: Segment income, half-year

    10 2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 1H 1H 602.8 729.5 709.0 1,059.8 391.2 465.5 19% 513.5 504.0 521.4 607.8 272.3 313.4 15% 89.2 225.5 187.6 452.0 118.9 152.1 28% -43.0 54.7 8.4 59.3 20.3 -25.5 -43.0 54.7 8.4 59.3 20.3 -25.5 6.5 18.9 81.8 26.5 48.6 16.9 -65% // 5.3 16.4 73.0 92.2 46.5 37.1

  19. Slide 19: Segment income, quarterly

    10 2006 3 2007 3 1Q 2Q 3Q 4Q 1Q 2Q 171.4 219.8 386.4 282.2 209.8 255.7 22% 16% 134.0 138.3 154.5 180.9 155.3 158.0 2% 14% 37.4 81.5 231.8 101.2 54.4 97.7 79% 20% -11.0 31.3 36.3 2.8 -20.6 -4.8 -11.0 31.3 36.3 2.8 -20.6 -4.8 27.1 21.6 -62.9 40.7 16.8 0.1 -100% -100% // 24.4 22.1 28.0 17.8 17.2 19.9 1

  20. Slide 20: Notes on segment figures

    ‡ 2 48 PE / 198 ‡ 2 ‡ 977 977 731 731 * / P18, 19 20 20

  21. Slide 21: Detailed results, half-year

    10 2002 2003 2004 2005 2006 2006 3 2007 3 3 3 3 3 3 1H 1H 229.1 249.3 305.8 304.4 446.5 186.2 200.1 7% 208.6 213.6 226.2 223.2 249.3 114.5 129.4 13% 20.5 35.7 79.5 81.2 197.2 71.7 70.7 -1% 215.8 236.0 284.1 243.1 371.1 127.5 117.4 -8% 133.2 142.4 163.3 182.9 213.4 96.7 106.6 10% 82.6 93.6 120.8 60.2

  22. Slide 22: Detailed results, quarterly

    10 2005 3 2006 3 2007 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 87.0 64.8 73.0 79.6 84.8 101.4 136.7 123.6 105.6 94.5 -11% -7% 53.3 54.9 55.0 60.0 54.5 60.0 62.6 72.2 63.1 66.3 5% 11% 33.7 9.8 18.0 19.6 30.3 41.4 74.1 51.4 42.5 28.2 -34% -32% 71.8 44.9 56.6 69.8 49.8 77.7 115.2 128.4 68.9 48.5 -30% -38% 41.2

  23. Slide 23: Other income by quarter

    10 2003 2004 2005 2006 2006 3 2007 3 3 3 3 3 1Q 2Q 3Q 4Q 1Q 2Q -41.6 7.0 10.1 -30.5 7.6 -9.9 -10.3 -17.9 -23.0 4.3 -6.2 -12.8 -9.7 -64.8 -2.8 -8.5 -17.6 -36.0 -11.4 -14.0 1.7 1.2 6.9 8.4 8.2 -0.1 0.0 0.3 0.1 4.8 -3.8 8.5 7.3 27.8 2.7 2.9 8.3 13.9 3.3 6.1 -9.4 -10.7 4.5 -7.4 0.5 -3.7 -3.6 -0.6 -7.2 3

  24. Slide 24: Consolidated balance sheet

    10 2006 3 2006 9 2006 3 2006 9 1,556 974 692 829 1,240 1,189 1,364 2,330 20,263 19,432 6,528 4,179 17,028 15,010 642 494 3,599 4,434 13,697 12,817 32,963 30,558 1,381 1,552 2,063 2,125 35,026 32,683 35,026 32,683 24 24

  25. Slide 25: Retail and asset management detail

    / 10 2006 3 2007 3 2004 3 2005 3 2006 3 2Q 3Q 4Q 1Q 2Q 259.3 275.0 325.4 73.8 87.9 91.2 82.8 79.1 144.3 159.6 170.4 42.1 43.2 43.8 43.8 44.3 142.4 151.1 160.7 39.7 41.0 41.5 41.7 41.9 1.9 8.5 9.7 2.4 2.2 2.3 2.1 2.4 115.0 115.4 155.0 31.7 44.7 47.4 39.0 34.8 114.4 113.6 150.5 30.3 43.5 46.2 37.7 33.

  26. Slide 26: Retail division metrics

    (1) 2003 2004 2005 2006 2006 3 2007 3 3 3 3 3 1Q 2Q 3Q 4Q 1Q 2Q 10 48.2 92.1 103.0 153.6 20.8 34.6 53.9 44.2 28.0 18.8 10 34.9 46.9 49.9 95.9 19.5 20.9 26.8 28.6 28.0 23.9 16.9 11.1 6.4 3.5 1.1 0.8 0.7 0.8 0.6 0.7 11.6 21.5 31.6 74.2 14.8 16.9 19.1 23.4 23.2 22.1 6.4 14.2 11.9 18.2 3.7 3.2 7.0 4.4 4

  27. Slide 27: Retail client assets

    (2) * 100 80.5 76.7 77.7 80 *** 61.2 60 54.8 40.6 40 ** 20 0 2003 3 2004 3 2005 3 2006 3 2006 6 2006 9 17.1 28.9 33.5 49.3 45.6 45.7 3.7 4.0 4.0 3.6 3.5 3.5 8.5 10.0 11.8 13.1 13.4 13.6 2.2 3.0 3.3 5.3 5.3 5.8 6.5 5.5 4.9 4.5 4.3 4.3 1.1 1.6 1.9 2.3 2.2 2.2 1.6 1.7 1.9 2.3 2.5 2.4 40.6 54.8 61.2 80.

  28. Slide 28: Retail accounts

    (3) * ** 10 8,000 6,749 6,000 4,581 4,000 3,391 1,788 2,042 2,000 1,009 0 2007 3 2003 3 2004 3 2005 3 2006 3 1Q 2Q * 28 28

  29. Slide 29: Online and IT accounts

    (4) * 2003 3 2004 3 2005 3 2006 3 2006 6 2006 9 3,418 3,460 3,678 3,780 3,815 3,859 1,311 1,379 1,680 1,745 1,767 1,806 1,141 1,367 1,716 1,969 2,029 2,094 2007 3 2003 3 2004 3 2005 3 2006 3 1Q 2Q 237 297 425 343 86 94 IT ** 41% 49% 52% 55% 54% 56% 14% 22% 24% 27% 28% 26% * ** IT 29 29

  30. Slide 30: Private equity and NFP

    10 600 503.3 500 457.6 439.1 400 375.7 369.7 301.6 300 208.5 200 132.1 84.5 98.7 98.4 100 35.9 0 2003 3 2004 3 2005 3 2006 3 2006 6 2006 9 20.1 68.9 108.4 59.9 62.7 174.7 15.9 15.6 23.7 38.8 35.6 33.8 35.9 84.5 132.1 98.7 98.4 208.5 265.7 291.2 325.5 340.4 271.4 294.9 301.6 375.7 457.6 439.1 369.7 5

  31. Slide 31: Retail metrics

    (1) 30 25 23.1 23.0 23.0 20 17.6 17.9 15.9 15 10 5 0 2003 3 2004 3 2005 3 2006 3 2006 6 2006 9 1 2006 6 31 2 8 31

  32. Slide 32: Asset management and ETF

    (2) 25 2003 2004 2005 2006 2006 2006 22.0 3 3 3 3 6 9 21.0 20.8 10.7 11.3 10.8 14.0 14.1 14.9 20 3.2 4.5 4.4 6.9 7.3 7.7 7.3 6.3 5.6 5.6 5.3 5.3 15.7 16.0 0.2 0.4 0.8 1.5 1.5 1.9 15 14.2 3.6 4.4 5.1 7.0 6.7 7.1 2.9 3.0 3.2 4.0 3.8 3.9 0.7 1.4 2.0 3.0 3.0 3.2 10 14.2 15.7 16.0 21.0 20.8 22.0 2003 200

  33. Slide 33: Asset management funds

    (3) ( ) 2003 3 2004 3 2005 3 2006 3 2006 6 2006 9 3.2 4.5 4.4 6.9 7.3 7.7 7.3 6.3 5.6 5.6 5.3 5.3 19% 19% 15% 15% 16% 16% 40% 40% 42% 42% 42% 42% 16.3 23.3 28.9 45.0 46.1 49.8 18.1 15.8 13.5 13.5 12.7 12.5 10 2005 3 2006 3 2006 6 2006 9 339 801 891 1,317 0 90 167 247 0 454 651 922 225 0 384 417 464

  34. Slide 34: Investment banking deals

    2 „ ‡ 2006/7/27 9 2,131 ‡ 2006/8/28 9 779 ‡ 2006/9/22 9 380 ‡ 2006/9/25 524 „ ‡ CDP 20 „ 1,300 „ 20 1 7,500 „ TOB MBO „ ‡ IPO 1,645 MID 918 437 ‡ PO 1,399 969 103 ‡ CB CSK 350 ‡ MPO/HPO 170 7 360 ‡ M&A 698 IAC FDI 2006 5 6 7 8 9 21,400 40,156 47,408 54,927 61,554 0 1,224 1,718 2,240 3,182 1,377 54,9

  35. Slide 35: M&A league tables

    - M&A 2006 1 1 2006 9 30 2006 1 1 2006 9 30 1 13,153.0 28.0% 80 1 25,538.6 26.0% 22 2 8,409.9 17.9% 72 2 24,241.9 24.7% 24 3 7,596.3 16.2% 42 3 24,078.9 24.5% 14 4 6,071.5 12.9% 10 4 22,881.7 23.3% 93 5 3,783.6 8.0% 36 5 19,099.0 19.4% 7 6 2,212.0 4.7% 10 6 18,487.3 18.8% 95 7 UBS 2,043.8 4.3% 8 7 1

  36. Slide 36: Wholesale and market shares

    2006 3 2007 3 2003 3 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 52.0 105.9 144.7 308.3 38.8 64.3 104.3 100.9 74.2 58.7 16% 10% 8% 7% 7% 7% 7% 6% 5% 4% 33.2 31.9 33.2 48.6 8.8 11.4 14.5 14.0 13.9 9.5 14.1 19.3 21.1 30.5 4.9 6.6 9.3 9.7 9.6 9.8 20% 16% 17% 21% 18% 19% 23% 22% 22% 18% 68.1 74.4 80.1 80.7 1

  37. Slide 37: Value at Risk (VaR)

    „ VaR „ VaR 10 ‡ 99 2.33 ‡ 06.4.3 06.9.29 ‡ 1 ‡ 9.4 ‡ ‡ 5.8 ‡ 7.3 10 2003 3 2004 3 2005 3 2005 9 2006 3 2006 6 2006 9 1.5 3.3 3.0 3.9 6.0 5.4 6.0 2.3 2.0 2.8 3.1 3.3 4.1 3.5 0.2 0.5 0.7 1.0 1.4 1.5 1.3 4.0 5.8 6.5 8.0 10.7 11.0 10.9 -0.9 -1.9 -2.4 -2.7 -3.7 -3.8 -3.5 VaR 3.1 3.9 4.1 5.3 7.0 7.1 7.3

  38. Slide 38: Headcount by division

    2003 3 2004 3 2005 3 2006 3 2006 9 3 FA/SA * 9,258 9,148 9,190 9,354 9,927 +573 FA / SA 1,986 1,915 1,875 1,948 2,132 +184 1,389 1,403 1,535 1,515 1,592 +77 797 866 1,026 1,073 1,021 -52 616 655 718 778 796 +18 14,046 13,987 14,344 14,668 15,468 +800 * 38 38

  39. Slide 39: Nomura Holdings, Inc.

    Nomura Holdings, Inc. www.nomura.com 39 39

Nomura Holdings — Q2 FY2007 Earnings Presentation on 6ix