Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2011/12 Earnings Presentation
42 slides from Nomura's earnings presentation, Nov 10, 2011
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 For the month of November 2011 NOMURA HOLDINGS, INC. (Translation of reg
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), Second quarter, year ending March 2012
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: November 10, 2011 By: /s/ Shinji Iwai Shinji Iwai Senior
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter, year ending March 2012
Table of Contents Consolidated Second (US Nomura November © Nomura GAAP) quarter, Holdings, 2011 Results year Inc ending of Operations March 2012
Slide 5: Disclaimer
Table of Contents Disclaimer Nothing practices No or This Any regarding economic timing Thepurchases liability part information consolidated such document ofof in of transactions. statements future and this can this the ofmarket document be is contains document jurisdictions any events, and financia
Slide 6: Presentation Outline
Table of Contents ExecutiveSupplement Presentation Outline Recalibrating Exposure (P18) Financial Consolidated Adjustment 2employeesin summary (p. of European balance for 37) consolidated a changing (P3) sheet peripheral (p. results industry 21)countries Value and(p4) segment atOverview (P19) risk (
Slide 7: Executive summary
Table of Contents Executive Net Highlights Retail Asset –Wholesale First Upcoming Recalibrate (1) 3Page Although Despite Net Client InNet revenue Investment half 4… revenue Management loss flows net lower summary initiatives revenues operations attributable of revenue of in Y301.6bn Banking, revenue
Slide 8: Recalibrating for a changing industry environment
Table of Contents Recalibrating Market Optimize Adapting changing environment AEJ: EMEA: Total Cost of Primarily Asia’s Remain 4Leverage recalibration implications Strengthen cost No.1 uncertainties client Lay Maintain expanded cost to in reductions Global Improve Wholesale foundation Americas: for
Slide 9: Overview of consolidated financial results
Table of Contents Overview (billions Highlights Non-interest Income Net FY2011/12 QoQ (46.1) (44.6) 346.2 301.6 Y 17 (9) F +36 +9 YoY (28.3) (10.3) 642.2 -(632.0 +27 5+18 1) Y2011/12 oYNet revenue income % % income (loss) ofofyen) 2Q 1H (loss)1 expenses results before (loss)income attributable taxes
Slide 10: Business segment results
Table of Contents Business (billions Revenue Asset Net (loss) income Segment Wholesale Unrealized Other1 investments held Income FY2011/12 84.0 10.7 301.6 QoQ (44.6) (2.4) (11) (51) Y 9((4) F 178.2 32.7 632.0 YoY (10.3) (3.6) -1(10) (46) (1) 4.3x—- 6(2) 9) 53) 8Y2011/12 oYNomura (1) “Other” revenue
Slide 11: Retail
Table of Contents (billions Non-interest expenses income Retail FY2010/11 66.1 70.4 70.6 72.3 68.1 2Q Key Income Net adverse across QoQ Client Sales –Other 7(of Accounts Retail Net UBS Nomura IPOs Bonds which) 3Q revenue: revenue performance points YoY due of asset sales client asset franchise 4Q (J
Slide 12: Retail: Net inflows and sales
Table of Contents Retail: Total Stocks 4,000 Others Net 2,500 1,107 847 72 2,122 Sixth Investment Bonds –Other Sales (billions 04500 FY2010/11 439.7 414.0 388.2 328.7 82Q 58 37.6 Continued Robust Sales 3Q asset 400 sales of quarter 3,000 2,000 products Consulting 4Q offoreign 300 of sales inflows st
Slide 13: Asset Management
Table of Contents Asset (billions QoQ Non-interest expenses income Assets FY2010/11 22.7 25.3 24.7 24.1 23.3 2Q Key Net Income Lower in increased Public investors funds –Launched Y30.8bn Inflows Japan Maintained by Sep In wealth including (1) 9(3) Nomura assets Europe international products Nomura S
Slide 14: Asset Management: Net inflow and market share
Table of Contents Asset Net Share Investment (billions 1,000 Public ETF FY2010/11 53 236 33 311 -21 344 -285 400 438 342 2Q 23% 21.9% 21.8% 21.7% 21.2% (trillions 12.0 Sep-10 4.7 4.9 4.4 4.5 5.7 5.3 4.6 3.7 Japan Non-Japan (1) (2) (3) 10 Nomura Source: Based 3Q inflow 10.0 21% Management: 800 of sto
Slide 15: Wholesale
Table of Contents QoQ Non-interest Income expenses income (billions 200.0 21.7 20.6 50.9 55.5 18.8 58.8 52.5 19.4 70.8 57.8 19.8 40.1 AEJ 7.1 FY2010/11 2Q Key Net Wholesale Japan Reported Business Global In 11 Investment 3Q revenue revenue: points Americas 35.3 40.3 38.9 41.7 11.5 YoY 150.0 net 4Q M
Slide 16: Wholesale: Global Markets
Table of Contents Wholesale: (billions FY2010/11 QoQ 2Q Others Non-interest Income Key taxes Net Fixed Robust Impact Securitized Equities Client Market slowdown 12 3Q revenue revenue: points YoY Income revenues flows flow 11.4 4Q from quarter conditions (loss) 55.2 ofin 1Q yen) Products Global FY201
Slide 17: Global Markets
Table of Contents Global Continued Client FY2009/10 156 1H decline intellectual major Americas ??Rate derivatives, Strengthened Fixed Expanded ??Enhanced onboard Broader ??Expanded Market ?Equities have Japan 250 Indexed: Revenues 0Q 50 100 150 FY2010/11 13 Continued Reinforced #1 Institutional Incr
Slide 18: Wholesale: Investment Banking
Table of Contents Wholesale: (billions FY2010/11 QoQ 2Q Allocation Investment Other Net Non-interest Income taxes (1) (2) (3) Key Loss Gross lowest challenging DCM, Japan sources. international growth Sovereign EMEA slowdown Significant and AEJ –Americas 14 AEJ Performance #1 Cross-border Solutions
Slide 19: Investment Banking
Table of Contents Investment Global M&A Announced Bain Jan-Oct, Japan EMEA 2010 Market (Outbound Nomura (Ranking) Takeda Americas JS Nisshinbo Asahi Mitsui Shionogi ($174m) Itochu Cox Fila AEJ Acushnet (1) 15 Group Source: Korea &Capital, 2011 Group deals /Kings/ M&A Pharmaceutical total1 Drummond P
Slide 20: Non-interest expenses
Table of Contents (billions (1,000 400 346.2 296.0 262.0 268.1 254.0 1,037.4 1,045.6 1,092.9 852.2 772.6 0F FY2011.3 2Q QoQ Commissions Information brokerage Occupancy communications Business depreciation expenses Other Key Non-interest Expenses Increase Compensation Full Total 16 billions Y2007.3 3
Slide 21: Robust financial position
Table of Contents Robust Capital Balance Shareholders’Y2.0trn Liquidity (preliminary) RWA Basel Tier Total Leverage (x) 18.0 Gross 11.0 18.1 (billions 2,000 Level Net FY2010/11 0% 80% 35% 37% 43% 44% 2Q (1) (2) (3) 17 Tier 22.0 Net Preliminary. 3Q 1Q leverage1 Level 13214.0 assets capital 13,099 2.5
Slide 22: Funding and liquidity
Table of Contents Funding Solid Balance Liabilities 80% Trading Cash Other Long-term Short-term 58% Approx. Robust Liquidity % Mar 70 53 26 21 16% 15% 10% 7% Approximately Assets Maintain portfolio Difference 8Weighted (US$bn) toRedemption 2007 total 2011/12 34.5 3Q >5Y (1) 18 (2) 4Qand balance asse
Slide 23: Exposure to European peripheral countries
Table of Contents Exposure GIIPS (US$m) Greece European 20 3,308 2,710 584 39 2,241 -151 -4 23 27 Total 597 247 76 Of 917 -49 -670 3,554 465 -79 2,815 308 47 83% All Italy Mostly 81% Net (1) (2) 19 307 21457 which, Inventory, Net inventory -1 inventory exposure country 40 402 accounts ($2.96bn) ($2.
Slide 24: Financial Supplement
Table of Contents Financial Supplement
Slide 25: Consolidated balance sheet
Table of Contents Consolidated (billions Assets private Mar. 2011 Short-term Liabilities Payables Collateralized Trading Other Long-term Equity Noncontrolling Total 1. 21 Including 31, 2011 Trading Cash Loans Collateralized Other assets Nomura liabilities liabilities equity liabilities of Sep. and (
Slide 26: Value at Risk
Table of Contents Value6.2 99% Definition From (billions Mar. 2007 Equity Interest Foreign Sub-total Diversification VaR 22 confidence 31, 2008 April at4.7 rate exchange 10.1 risk of Mar. 9.8 4.2 2009 yen) 13.7 16.9 11.7 to 31, 3.8 benefit 4.7 September level 2010 Mar. 1.4 19.2 2.6 12.6 6.78.0 (2.33
Slide 27: Consolidated financial highlights
Table of Contents Consolidated Full 400 20% (billions Quarter 40 4% -46.1 17.8 3.4% 1.4% 11.9 1.1% 13.4 0.3% 1.1 FY2007.3 FY2011.3 2Q Income Net Holdings, Total ROE Basic-Net NHI Shareholders’ *1 Note: 23 30 Quarterly 3Q 3% revenue income 200 year shareholders 10% (%)1 Nomura Net 20 4Q 2% (loss) 0of
Slide 28: Consolidated results: net revenue
Table of Contents Consolidated Full (billions FY2007.3 FY2011.3 Quarter 2Q Commissions Revenue Fees Asset Gain Private Other Total Interest Non-interest Income Net Note: 24 3Q gain revenue income year from (loss) revenue Certain management 67.4 4Q equity and expense (loss) of onFY2012.3 investment F
Slide 29: Main revenue items
Table of Contents Main Full (billions FY2011.3 Quarter FY2007.3FY2008.3FY2009.3FY2010.3FY2011.3 2Q Stock (retail) (other) investment Equity Bond M&A Other Administration Custodial Total Fees Commissions Investment Asset 25 3Qyear from 337.5 99.3 146.0 revenue underwriting management Management broke
Slide 30: Adjustment to segment results
Table of Contents Adjustment Full (billions FY2007.3 FY2011.3 Quarter 2Q Retail Asset Wholesale Three Other Segments Unrealized securities Effect certain Total 1. “Other” 2. 3. conform 4. 26 The Gain Certain Nomura 3Qyear 318.5 Management 24.0 Business 160.9 of defined 4Q private (loss) operating of
Slide 31: Segment 'Other' results
Table of Contents Segment Full (billions Quarter -17.8 -207.9 -62.1 -18.1 024.0 40 15.4 21.0 -12.9 -13.3 -8.0 FY2007.3 FY2011.3 2Q Net hedging Realized securities Equity Corporate Others* *Income 1: amounts 2: 3: presentation. net previously current 4: 27-40 Businesses The Net Nomura gain 3Q gain ye
Slide 32: Retail related data (1)
Table of Contents Full (billions Quarter FY2007.3 FY2011.3 2Q Commissions Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales (transaction Retail 1. 28 Nomura 3Q interest revenue year from credit of investment investment related foreign 4Q before investment JG
Slide 33: Retail related data (2)
Table of Contents Retail Full 180 S 90 (billions 0F 10 20 30 40 50 60 FY2011.3 2Q Stock Commissions investment 1. 29tock Y2007.3 Nomura 3Q 150 year brokerage related 4Q 120 ofFY2012.3 FY2008.3 1Q Securities. trusts1 yen) data for 2Qcommissions distribution QoQ (2) 124.7 FY2009.3 YoY 124.5of and 98.3
Slide 34: Retail related data (3)
Table of Contents Retail Full (trillions 08Quarter 20 40 60 80 100 Mar. 66.1 70.4 70.6 73.5 59.3 72.2 Equities Foreign Domestic Stock Bond Overseas Other Total 1. 2. 3. 30 5.2 Euroyen Includes year 31, 85.2 investment 3investment related client 2.9 currency 48.5 2007 of mutual bonds 72.2 bonds CBs a
Slide 35: Retail related data (4)
Table of Contents Retail Full Quarter 8,000 4,928 5,975 FY2007.3 3,942 (billions 4,000 1,107 2,122 FY2011.3 2Q 1. Note: 31 Retail 3Qyear Net 6,000 5,279 3,000 847 related client 4Qof client asset FY2012.3 458 FY2008.3 1Q yen) 4,000 4,868 2,000 assets: data 2Q 72 assets inflow 2,000 1,000 (4) Net FY2
Slide 36: Retail related data (5)
Table of Contents Retail Number Mar. Accounts Equity Nomura accounts) Full (Thousands) 2Q New IT No. Transaction 1. 32 IT share1 3Q of year 31, Individual individual share related orders holding 4Qof Home 2007 Quarter with 1Q is accounts value FY2007.3 the 55% data Mar. 2Q balance Trade accounts acc
Slide 37: Asset Management related data (1)
Table of Contents Asset FY2011.3 (billions 2Q Net Non-interest Income :The conform Nomura Total Full (trillions Quarter 35 25.8 27.0 23.4 24.7 Mar. 20.2 1. Technologies 33 Total 30 3Q revenue year 25.3 22.7 defined 31, assets Management 254Q before assets Bank of 2007 to of 20FY2012.3 1Q the yen) ye
Slide 38: Asset Management related data (2)
Table of Contents Asset Mar. Overseas Investment 2007 Domestic Market Nomura’s Nomura Full (trillions FY 2007.3 Exclude Public Privately trusts investment Net 1. 2. 34 Based Source: FY asset year 31, 2008 Management stock bond FY 2008.3 59.4 13.2 Asset ETF Mar. on of Quarter placed inflow investment
Slide 39: Wholesale related data (1)
Table of Contents Wholesale Global FY2011.3 Fixed Equities (billions 2Q Allocation Investment Other Net Non-interest Income 35 3Q revenue -38.9 -69.9 Income 4Q Markets (Loss) 98.9 ofFY2012.3 1Q related to yen) Banking Banking(Gross) Banking(Net) -2.4 12.2 -163.6 -157.3 -6.4 expenses other 352.8 -217
Slide 40: Wholesale related data (2)
Table of Contents Wholesale Private Full (billions Quarter 05600 381.4 327.7 254.9 286.4 210.9 Mar. 175.1 Japan Europe Asia—- Sub Terra Total 1. 2. 36 43.4 Amount 500 Total year 31, 543.4 Firma 366.3 313.7 250.9 202.7 195.5 equity (excluding 3.2 400 of 2007 231.2 related of yen) 381.4 3.6 Asia 312.2
Slide 41: Headcount
Table of Contents Number Mar. Japan Europe Americas Asia-Pacific3 Total 1. 2. 3. Note: 37 Excludes Figures Includes 31, 16,854 Headcount (excluding (FA)2 1,791 of 2007 1,322 up employees Powai employees 2,174 18,026 to 1,956 900 Mar. March 1,063 FA)1 figures office 1,070 2,377 31, 4,294 25,626 1,079
Slide 42: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com