Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2015/16 Earnings Presentation
38 slides from Nomura's earnings presentation, Nov 5, 2015
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 2015 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 2016
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 5, 2015 By: /s/ Hajime Ikeda Hajime Ikeda Senior
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter, year ending March 2016
Table of Contents Connecting Consolidated Second (US Nomura October GAAP) quarter, 2015 Holdings, Markets Results ©year Nomura Inc. East ending of Operations & West March 2016
Slide 5: Presentation Outline
Table of Contents Presentation Outline Executive Overview Business segment Non-interest Segment Robust Retail Funding Asset Wholesale Number Management (p. related financial of and “Other” segment 6-7) of summary (p. related employees Financial expenses results region liquidity data 10-12) Consolida
Slide 6: Executive Summary
Table of Contents Executive Highlights: Income Net All Solid Retail 2Q Asset AuM Continued Equities Wholesale Continue Dividend (1) (3) Net Diluted annualized business revenue: of progress Management income before Y40trn and to per summary inflows net FY2015/16 work divisions Investment Y760.6bn; sh
Slide 7: Executive Highlights
Table of Contents Executive Highlights: Investors Retail Revenues Equities Investment Extraordinary Banca Booked (Nomura (1) (3) Income Group-wide 116.1 Net 51.7 Three Asset Wholesale 82.3 53.8 FY2014/15 31Q Net Diluted 2Q revenue, revenue: income 46.6 68.9 45.6 income Management business segment Mo
Slide 8: Financial Highlights Overview
Table of Contents Overview (billions Highlights FY2015/16 QoQ 2Q Non-interest Income Net EPS2 ROE3 *Booked (1) (2) Net Diluted 1H revenue income1 YoY Y12.63 6.7% income before of deferred YoY ofnet yen, FY2015/16 8.4% 336.6 expenses results 46.6* -32% income attributable except tax -21% -32% -11% as
Slide 9: Business Segment Results
Table of Contents Business FY2015/16 (billions 2Q revenue Wholesale Other* Net income before taxes Subtotal Other Unrealized equity Income *Other” 5Banca 1H Retail revenue Wholesale *Monte securities 16.1 Asset Retail before -23.0 Asset (2Q) 331.4 53.8 of segment 115.7 192.9 gain yen) FY2015/16 -69%
Slide 10: Retail Segment Results
Table of Contents FY2014/15 QoQ Non-interest Key Income sitting Continue Providing Client clients Retail Accounts NISA Net (billions Stocks 04,000 2Q (1) (2) Total Stocks: Contributions Secondary Investment Wait-and-see Bond Softer Foreign 6Discretionary FY2014/15 Cash Retail 3Q revenue: revenue inf
Slide 11: Retail: Progress in Business Model Transformation
Table of Contents Retail: 78.0 90.0 FY2015/16 65.7 60.4 70.0 Conducting Annualized Robust Recurring Discretionary Investment Assets 2,000 1,927.5 284.2 1,694.7 978.3 558.6 1,000 500 0F Insurance (billions 150.0 115.9 FY2014/15 0.0 50.0 2Q (1) Y2014/15 Retail /1Q 3Q 242.6 78.3 Recurring Sep 101.1 Qua
Slide 12: Asset Management Segment Results
Table of Contents Asset (billions QoQ Key Income Net Share Inflows Nikkei 2Q Nomura Investment Won Assets (trillions 46.0 49.4 FY2014/15 (1) Capital. (2) (3) Assets Net Undertakings 3Q net revenue: revenue assets points 47.5 aYoY Management of number under inflows 4Q 400 after before into Nomura Tem
Slide 13: Asset Management: Growth in ETF and Investment Trust Business
Table of Contents Asset Nomura (trillions 41.4 24.9% 40.0 28.6 20.0 0.0 (billions Investment Other 10 1,000 8789 90 4Ranked 2Q (1) (2) 7.0 20% 50% Mkt. Net Source: 3Q FY2014/15 826 40.0 34.8 22.0% 40% Management: 944 investment -500 4Q after #64 by share Asset ETFs of of 24.6% 24.0% 500 1Q growing y
Slide 14: Wholesale Segment Results
Table of Contents Wholesale QoQ Global Non-interest (billions 200.0 250.0 59.2 46.1 150.0 26.4 65.1 FY2014/15 0.0 2Q Key Income In Net ECM EMEA: Investment Americas: Fixed Equities -AEJ: Equities Global 3Q revenue: revenues revenue points Americas 32.7 50.0 78.3 YoY Y26.4bn business 56.2 26.8 Income
Slide 15: Wholesale: Global Markets
Table of Contents Wholesale: Net (billions 199.0 Fixed 176.2 168.1 149.7 81.7 63.7 117.4 Americas FY2014/15 2Q Key Japan 0% Trading Client Securitized across Equities were (1) Fixed 3Q ~revenue1 points Markets -6% down ±5% YoY 104.4 QoQ -10% Global Income revenues all 4Q impacted AEJ: YoY of Fixed I
Slide 16: Wholesale: Investment Banking
Table of Contents Wholesale: Revenue (billions 40.7 34.2 29.2 2.5 YoY 0.0 29.6 33.4 22.5 83.9—AEJ: -0.4 FY2014/15 2Q Key Net Japan Investment sales 33.9%)1 Supporting -International: 1—#7 (1) 12Japan: declined Source: 3Q +52% in revenue: -0.1 points—Revenue 52.7 Japan: 29.0 29.9 as +34% ofdeals in 4
Slide 17: Non-interest Expenses
Table of Contents Full (billions 1,500 400 1,257.4 13 year 1,195.5329.6 expenses Increase 0 3Q of Quarter depreciation and 0brokerage benefits FY2014/15 FY2013/14 2Q Commissions Information Occupancy Business Total Key Non-interest Compensation Other 308.9 yen)(billions expenses 299.8 communications
Slide 18: Robust Financial Position
Table of Contents Robust Balance Mar Shareholders’ Gross Liquidity (net) Basel RWA3 Tier Total Consolidated HQLA6 LCR6 Risk (trillions 20.0 10.0 5.0 0.0 (billions Level 800 Net 14% 20% 600 010% FY2014/15 (1) (3) sheet 0%Net Credit 5.0% 0.0% leverage1 Level 30% 22015 120.0% 10.0% 14% 200 weighted ass
Slide 19: Funding and Liquidity
Table of Contents Funding Balance Assets Highly Unsecured structure Average Short-term 70% Liquidity portfolio: –Other (1) (2) (3) Y6.2trn, 80% Other Maintain Trading Definition Excludes 5.2 assets of Liabilities liquid, assets sheet retail years3 and assets portfolio2 Cash borrowings or funding thr
Slide 20: Financial Supplement
Table of Contents Financial Supplement
Slide 21: Consolidated Balance Sheet
Table of Contents Consolidated (billions 2015 Assets Trading Long-term equity Noncontrolling Total (1) 17 Including 2015 cash payables loans collateralized trading other NHI assets investments Liabilities liabilities ofand shareholders’ (Decrease) borrowings assets and yen) 41,783 assets1 securities
Slide 22: Value at Risk
Table of Contents ValueMar Definition (billions Mar Equity Interest Foreign Sub-total Diversification VaR 18 5.2 at1.3 rate exchange 4.6 risk of Sep 8.0 From 1.0 yen) 6.8 3.9 6.2 Dec 1.5 benefit 9.7 4.2 FY2013/14 April 8.5 2.8 3.3 Mar 4.6 4.2 10.9 1.1 1.0 1, -2.9 Jun 3.8 4.5 2015 2.7 6.2 1.3 5.4 4.2
Slide 23: Consolidated Financial Highlights
Table of Contents Consolidated Full 300 213.6 to ROE(%) FY2013/14 Income Net (“NHI”) ROE Basic-Net Diluted-Net shareholders Total (billions Quarter 90 12% 60 8.6% 9% 30 082.0 FY2014/15 2Q 373.8 74.0 52.9 2,561.1 5.7% 14.53 14.15 703.55 (1) 190% NHI 10.0% 7.3% 70.0 Quarterly 3Q revenue income 8.9% ye
Slide 24: Consolidated Results
Table of Contents Consolidated Full (billions FY2013/14 2Q Commissions Revenue Fees Asset Gain Other Total Interest Non-interest Income Net 20 3Q gain revenue income year from (loss) revenue management 179.5 4Q and expense before of on Quarter investment 1Q on yen) FY2014/15 attributable trading div
Slide 25: Main Items: Commissions and Fees
Table of Contents Mainportfolio Full FY2014/15 (billions Stock Commissions Other Equity Bond Fees investment Asset and fees Total 21 Custodial year from 473.1 91.3 168.7 revenue underwriting management brokerage 30.6 underwriting of Quarter M&A 95.1 46.8 banking yen) 453.4 203.4 FY2015/16 service Co
Slide 26: Business Segment and Geographic Information
Table of Contents Consolidated Adjustment FY2014/15 Retail Asset Wholesale Three Other Segments Unrealized securities Geographic Full (billions 2Q Americas Europe Asia Subtotal Japan Income (1) the Geographic legal 3Qyear and Management 20.0 386.3 Business 192.0 4Q -48.9 before -24.7 of entity Ocean
Slide 27: Segment Information: Other
Table of Contents Segment Full (billions 50.0 20.0 30.0 40.0 -10.0 0.0 2.5 10.0 -30.0 1-20.0 FY2014/15 FY2013/14 2Q Net hedging Realized securities Equity Corporate Others Income 232 3Q 1gain year 46.0 14.7 2-23.0 -4.0 8.4 in 4Q 3(loss) transactions of related gain “Other” 4Quarter earnings 44.8 hel
Slide 28: Retail Related Data
Table of Contents Fullwhich, (billions FY2013/14 2Q Commissions Of Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales Retail (1) 24 Excluding 3Q interest revenue year from credit of investment investment related foreign 4Q before investment JGBs of Quarter di
Slide 29: Retail Client Assets
Table of Contents Retail (trillions 120 109.5 Other 100 80 0F 20 Mar Equities Foreign Domestic Stock Bond Overseas Other2 Total (1) (2) Y2013/14 Including 109.5 91.7 Mar 91.7 investment 104.8 99.3 investment related client 2.7 currency 53.2 of Sep mutual bonds bonds1 113.4 109.5 4.5 yen) FY2014/15 1
Slide 30: Retail Net Inflows
Table of Contents Retail Net Full (billions 1,500 997 1,076 1,000 500 95 177 0352 -137 FY2014/15 2Q (1) -500 Cash 3Q inflows 485 0 year 1,000 500 related 4Qof and Quarter 1Q yen) FY2015/16 ofsecurities data 2Q cash (billions (3) andinflows FY2013/14 securities1 of yen) minus FY2014/15 outflows, excl
Slide 31: Retail Accounts Data
Table of Contents Retail Number Accounts Equity Nomura 4,012 Full (Thousands) 2Q New IT No. (1) 27 share1 Percentage 3Q of year Individual individual 4,216 related orders holding 4Qof Home Quarter with 1Q accounts 4,103 FY2013/14 58% data 2Q of balance Trade accounts accounts cash 4,154 (4) 59% / st
Slide 32: Asset Management Related Data
Table of Contents Asset Full FY2014/15 (billions 7.7% FY2013/14 (trillions Mar Nomura Assets (1) (2) management Total Nomura year Mar Management under Asset Corporate Private of assets of Sep Quarter yen) yen) FY2015/16 FY2014/15 Asset (gross). management Dec Management1 under Equity FY2013/14 Manag
Slide 33: Asset Management: Investment Trust Business
Table of Contents Asset Full (billions Investment (trillions Domestic Market Nomura’s (1) Based year Management inflows/outflows 65.7 8.1 of of Quarter public on share 12.9 yen) trusts yen) 80.3 assets (%) 9.7 FY FY2013/14 investment stock business 71.7 related under 10.6 FY 49% 77.1 investment by F
Slide 34: Wholesale Related Data
Table of Contents Wholesale FY2013/14 Net Breakdown Full (billions 2Q Fixed 14.7% Investment (1) 30 Fixed 3Q revenue year Income1 48.6% 4Q of Quarter Income 1Q related yen) Banking FY2014/15 of 765.1 Other 2Q Wholesale 385.4 FY2014/15 FY2013/14 and data 789.9 18.0 (Gross) 396.9 Equities (1) QoQ 190.
Slide 35: Wholesale Private Equity Investments
Table of Contents Wholesale Private (billions 60 70 56.4 45.6 50 40 0F 10 20 Japan Mar Europe Asia Terra 31 Y2013/14 57.2 Mar 44.6 1.9 Firma equity (excluding 56.4 2.1 of Sep related yen) FY2014/15 24.6 1.9 58.6 Dec related 2.1 23.8 58.7 data Mar Terra 2.1 investments 24.2 (2) Jun 2.1 FY2014/15 3025
Slide 36: Number of Employees
Table of Contents Number FY2013/14 Japan Europe Americas (1) 32 Includes (FA) 3,461 of2,281 employees 1,888 FY2014/15 Powai 3,485 2,449 1,829 office 3,530 2,421 FY2014/15 1,853 in 3,539 India. 2,445 1,853 3,485 2,449 FY2015/16 1,829 3,492 2,439 1,848 3,494 2,514 Mar 1,806 Mar Asia-Pacific1 Sep Dec M
Slide 37: Disclaimer
Table of Contents Disclaimer Nothing securities or accepted All without This be nature, consider website events Forward-looking Thesales read rights information consolidated document and are in may (http://www.nomura.com) the in all by issued regarding the inherently investor this prior of Nomura be
Slide 38: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com