Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2006.3 Earnings Presentation
40 slides from Nomura's earnings presentation, Jul 29, 2005
Slide 1: Form 6-K Nomura Holdings, Inc.
Table of Contents FORM 6-K U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Commission File Number: 1-15270 Supplement for the month of July 2005. NOMURA HOLDINGS, INC. (Translatio
Slide 2: Information furnished on this form
Table of Contents Information furnished on this form: EXHIBIT Exhibit Number 1. [Consolidated Results of Operations (US GAAP) – First quarter, year ending March 2006] 2
Slide 3: Signatures
Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NOMURA HOLDINGS, INC. Date: July 29, 2005 By: /s/ Tetsu Ozaki Tetsu Ozaki Senior Mana
Slide 4: Nomura
Table of Contents NOMURA
Slide 5: Disclaimer
Table of Contents 1. This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2005 Nomura Holdings, Inc. All rights reserved. 2. 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
Slide 6: Outline
Table of Contents Outline Presentation n Consolidated Financial Summary (p. 4-5) n Revenue and Income by Business Segment (p. 6) n Domestic Retail ¨ Revenue (p. 7) ¨ Retail Client Assets (p. 8) ¨ Net Asset Inflow (p. 9) n Global Markets ¨ Revenue (p. 10) n Global Investment Banking ¨ Revenue (p. 11)
Slide 7: Consolidated Financial Summary (1)
Table of Contents Consolidated Financial Summary (1) (millions of yen, per share data in yen) FY2006.3 FY2005.3 FY2005.3 1Q 1Q 4Q YoY QoQ Net revenue 286,735 213,928 234,533 34% 22% Non-interest expenses 256,031 141,462 167,563 81% 53% Income before income taxes 30,704 72,466 66,970 -58% -54% Net in
Slide 8: Consolidated Financial Summary (2)
Table of Contents Consolidated Financial Summary (2) (millions of yen) FY2006.3 FY2005.3 FY2005.3 1Q 1Q 4Q YoY QoQ Revenue 421,119 275,295 328,353 53% 28% Commissions 55,152 69,533 60,570 -21% -9% Fees from investment banking 14,719 15,434 26,137 -5% -44% Asset management and portfolio service fees
Slide 9: Revenue and Income by Business Segment
Table of Contents Revenue and Income by Business Segment (billions of yen) FY2006.3 FY2005.3 FY2004.3 1Q YoY QoQ 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q Domestic Retail Net revenue 84.8 -2% 7% 79.6 73.0 64.8 87.0 79.8 75.4 75.6 75.0 Non-interest expenses 54.5 2% -9% 60.0 55.0 54.9 53.3 59.8 55.3 56.9 54.2 Income be
Slide 10: Domestic Retail (1) Revenue
Table of Contents Domestic Retail (1) Revenue Revenue up 7%, income before income taxes up 55% on strong sales of investment trusts n Commissions: 45.2 billion yen (down 1%) ¨ Commissions for Investment Trusts Distribution and Redemption*: 19.5 billion yen (up 43%) l Stock Investment Trusts Commissi
Slide 11: Domestic Retail (2) Retail Client Assets
Table of Contents Domestic Retail (2) Retail Client Assets* Retail client assets top 40 trillion yen on robust sales of investment trusts and JGBs for individual investors Jun. 2003 Sept. 2003 Dec. 2003 Mar. 2004 Jun. 2004 Sept. 2004 Dec. 2004 Mar. 2005 Jun. 2005 Foreign bonds 3.9 3.7 3.8 3.7 3.6 3.
Slide 12: Domestic Retail (3) Net Asset Inflow
Table of Contents Domestic Retail (3) Net Asset Inflow (monthly average)* * Net Asset Inflow: Gap between inflow and outflow of assets 9
Slide 13: Global Markets Revenue
Table of Contents Global Markets Revenue Revenue down 29% due mainly to a decline in fixed income-related revenue resulting from tough market environment n Fixed Income ¨ MTN issues at high level ¨ Large International Bond Underwritings l Austria: EUR 5 billion (joint lead) l Greece: EUR 5 billion (
Slide 14: Global Markets Revenue Breakdown
FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q QoQ Fixed-income related 38.5 16.0 27.1 38.3 21.3 -44% Equity related 29.7 22.1 20.5 22.2 23.6 7% Other 3.6 6.8 9.1 9.3 4.8 -48% Income before income taxes 30.6 3.4 12.8 13.3 -0.7 — * Data through FY04.3 4Q represent Fixed Income and Equity totals. 10
Slide 15: Global Investment Banking Revenue
Table of Contents Global Investment Banking Revenue Revenue down 34% on decline in Equity financing n Equity and Equity-related Underwriting (IPO, PO, CB)1 ¨ Value Total: USD 4.42 billion (down 63% QoQ) Nomura: USD 895 million (down 63% QoQ) ¨ Major Deals l IPO Gourmet Navigator: 7.2 billion yen l P
Slide 16: Global Merchant Banking Revenue
Table of Contents Global Merchant Banking Revenue Revenue of minus 3.3 billion yen due to funding costs for Terra Firma n New Deals ¨ Misawa Homes Holdings l Fund originated by NPF completed payment of 11.2 billion yen n Merchant Banking Business Exposure Net Revenue and Income before Income Taxes 1
Slide 17: Asset Management (1) Revenue
Table of Contents Asset Management (1) Revenue Revenue up 19% due primarily to increase in net asset value of stock investment trusts n New Funds ¨ Funds Offering Frequent Distributions l Japan Attractive Dividend Stock Fund initial sales: 49.5 billion yen (199.3 billion yen) l My Story Profit Distr
Slide 18: Asset Management (2) Assets Under Management
Table of Contents Asset Management (2) Assets Under Management (Nomura Asset Management, NCRAM*) FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Public stock investment trusts (lhs) 3.5 4.3 4.3 4.5 4.6 4.1 4.4 4.4 5.0 Public bond investment trusts (lhs) 7.0 7.0 6.6 6.3 6.0 5.7 5.6 5.6 5.4 Priv
Slide 19: Non-interest Expenses (Excluding Private Equity Investee Companies)
Table of Contents Non-interest Expenses (Excluding Private Equity Investee Companies) Non-interest expenses dropped 9% Note: All non-interest expense figures shown on this slide exclude the effects of the consolidation/ deconsolidation of certain private equity investee companies. See slides 23 – 25
Slide 20: Appendix
Table of Contents Appendix 16
Slide 21: Revenue (1) Commissions
Table of Contents Revenue (1) Commissions FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions (Domestic Retail) 12.1 26.2 25.6 28.2 36.5 19.9 19.3 27.3 20.8 Stock brokerage commissions (Other) 6.8 13.4 13.1 12.1 12.6 9.1 7.7 10.7 8.0 Other commissions 3.1 2.6 1.5 5.0 3.
Slide 22: Revenue (2) Fees from Investment Banking
Table of Contents Revenue (2) Fees from Investment Banking FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Equity underwriting commissions 2.9 10.0 14.3 17.5 5.7 22.0 10.5 10.8 4.9 Bond underwriting commissions 8.8 6.1 6.1 5.3 4.9 4.4 3.5 7.7 3.6 Financial advisory fees 2.6 3.8 4.0 5.4 4.8 5.9
Slide 23: Revenue (3) Asset Management and Portfolio Service Fees
Table of Contents Revenue (3) Asset Management and Portfolio Service Fees FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Asset management fees 9.4 10.8 11.8 12.1 12.5 12.4 13.6 12.6 13.5 Administration fees 1.9 3.6 2.5 4.1 2.9 4.7 3.1 5.4 3.4 Custodial fees 2.4 2.6 2.5 2.5 2.7 2.7 2.6 3.2 3.1
Slide 24: Revenue (4) Net Gain on Trading
Table of Contents Revenue (4) Net Gain on Trading FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Bonds and other 60.3 33.2 27.0 31.8 20.7 24.4 36.6 39.1 31.7 Equity 20.1 32.8 6.2 16.2 30.0 -1.7 17.8 30.7 38.9 Gain on private equity investment/merchant banking trading -0.6 8.3 -1.5 8.4 3.4 -1.
Slide 25: Key Items of Consolidated Balance Sheets
Table of Contents Key Items of Consolidated Balance Sheets (millions of yen) Mar. 2005 Jun. 2005 Assets Cash and cash deposits 1,186,756 1,271,279 Loans and receivables 1,244,528 939,034 Collateralized agreements 14,389,045 15,290,308 Trading assets and private equity investments 15,600,521 14,595,5
Slide 26: Major Differences (Segment/Income Statement)
Table of Contents Major Differences (Segment/Income Statement) FY2005.3 FY2006.3 Full 1Q 2Q 3Q 4Q Year 1Q (billions of yen) Total Income before Income Taxes for Business Segments 67.1 22.0 38.1 47.7 175.0 29.2 Loss/gain on undesignated hedging instruments included in net gain on trading -13.0 5.3 0.
Slide 27: Effect of Consolidation/Deconsolidation (1) Income Statement
Table of Contents Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies (1) Consolidated Income Statement (millions of yen) US GAAP Figures Quarterly FY2006.3 FY2005.3 FY2005.3 1Q 1Q 4Q YoY QoQ Net revenue 286,735 213,928 234,533 34% 22% Non-interest expenses 256,031 1
Slide 28: Effect of Consolidation/Deconsolidation (2) Non-interest Expenses
Table of Contents Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies (2) Non-interest Expenses (billions of yen) FY04.3 FY05.3 FY06.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Compensation and benefits 65.9 67.7 61.8 63.9 65.9 64.2 67.4 77.4 87.1 Fixed-type compensation and benefi
Slide 29: Effect of Consolidation/Deconsolidation (3) Balance Sheet
Table of Contents Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies (3) Consolidated Balance Sheet Assets As of June 30, 2005 (billions of yen) Total Assets 34,164 Excluding private equity investee companies 33,111 Private equity investee companies 1,053 Note: Priv
Slide 30: Nomura Securities Client Assets
Table of Contents Nomura Securities Client Assets FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Equities 24.8 28.7 30.3 35.9 37.2 34.9 39.2 40.0 41.9 Bonds 17.9 18.4 17.5 17.3 17.3 18.3 18.2 19.2 19.7 Stock investment trusts 2.6 2.8 3.1 3.3 3.5 3.4 3.7 3.9 4.3 Bond investment trusts 6.3 6.2
Slide 31: Domestic Retail Related Data
Table of Contents Domestic Retail Related Data FY2004.3 FY2005.3 FY2006.3 Domestic Retail 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Retail Foreign Currency Bond Sales (billions of yen) 976.8 405.1 316.3 291.8 228.7 243.0 313.1 369.6 304.8 Commissions for investment trusts distribution and redemption (billions of y
Slide 32: Number of Accounts
Table of Contents Number of Accounts FY2004.3 FY2005.3 FY2006.3 (thousands of accounts) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Nomura Home Trade (online trading accounts) 1,168 1,215 1,290 1,367 1,452 1,533 1,651 1,716 1,774 IT Share No. of orders 45% 46% 46% 49% 49% 51% 50% 51% 52% Transaction value 21% 21% 21
Slide 33: Secondary Market Share Data
Table of Contents Secondary Market Share Data (trillions of yen) FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Individual Equity Agency Transactions Share (monthly average) Market 5.0 9.1 9.8 11.4 13.9 10.0 9.9 14.4 12.9 Nomura’s share 8% 10% 9% 10% 10% 7% 8% 8% 7% Off-floor/Off-exchange Equ
Slide 34: Primary Market Share Data
Table of Contents Primary Market Share Data* FY2004.3 FY2005.3 FY2006.3 1Q 1Q-2Q 1Q-3Q 1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q 1Q Japanese IPO Nomura’s share 5% 10% 26% 27% 45% 42% 36% 32% 13% Japanese PO Nomura’s share 37% 58% 39% 33% 17% 26% 26% 25% 24% Convertible Bonds Nomura’s share 9% 14% 26% 28% 21% 20% 1
Slide 35: League Tables
Table of Contents League Tables Global Equity & Equity-related (Japan) Jan. 1, 2005 - Jun. 30, 2005 Proceeds M kt. No. of Rank Bookrunner (US$mn) Share Issues 1 Nikko Citigroup 4,945.6 30.1% 31 2 Nomura 3,294.0 20.1% 43 3 Daiwa Securities SMBC 2,654.2 16.2% 37 4 Mizuho Financial Group 1,605.7 9.8% 1
Slide 36: League Tables (continued)
1 Nomura 716,433 25.6% 41 2 Mizuho Securities 576,549 20.6% 31 3 Daiwa Securities SMBC 464,044 16.6% 26 4 Nikko Citigroup 430,422 15.4% 21 5 Mitsubishi Securities 254,954 9.1% 11 6 Goldman Sachs Group 134,941 4.8% 9 7 UFJ Tsubasa Securities 99,994 3.6% 6 8 Morgan Stanley 72,487 2.6% 6 9 Merrill Lync
Slide 37: Domestic Public Investment Trust Market / Nomura Asset Management Market Share
Table of Contents Domestic Public Investment Trust Market/ Nomura Asset Management Market Share FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Stock investment trusts (lhs) 18.3 20.1 21.3 23.3 24.8 25.6 27.4 28.9 32.0 Bond investment trusts (lhs) 17.3 17.1 16.1 15.8 14.8 13.9 13.6 13.5 13.0 P
Slide 38: Value at Risk (Consolidated)
Table of Contents Value at Risk (Consolidated) n Definition ¨ 99% confidence level ¨ 1-day time horizon for outstanding portfolio ¨ Inter-product price fluctuations considered n From April 1, 2005 to June 30, 2005 ¨ Maximum: 5.7 billion yen ¨ Minimum: 3.8 billion yen ¨ Average: 4.8 billion yen (bill
Slide 39: Number of Employees
Table of Contents Number of Employees Jun. 2003 Sept. 2003 Dec. 2003 Mar. 2004 Jun. 2004 Sept. 2004 Dec. 2004 Mar. 2005 Jun. 2005 Asia/Oceania 622 646 652 655 668 684 704 718 746 Americas 821 843 852 866 914 935 968 1,026 1,069 Europe 1,439 1,372 1,439 1,403 1,407 1,458 1,499 1,535 1,524 Japan (FA,
Slide 40: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com 35