Nomura Holdings, Inc. · TSE:8604
Nomura — FY2019/20 Earnings Presentation
40 slides from Nomura's earnings presentation, May 21, 2020
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 May 2020 NOMURA HOLDINGS, INC. (Translation of registra
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), Fourth quarter and year ended March 2020
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: May 21, 2020 By: /s/ Go Sugiyama Go Sugiyama Senior Manag
Slide 4: Consolidated Results of Operations, Fourth quarter, year ended March 2020
Table of Contents Connecting Markets East & West Consolidated Results of Operations Fourth quarter, year ended March 2020 (US GAAP) Nomura Holdings, Inc. May 2020 © Nomura
Slide 5: Outline of Presentation
Table of Contents Outline (p. income position Presentation (p.23) 17)Asset RetailFinancial Management related data Supplement (p. 27-30) 11-12) Executive Funding Main revenue summary and liquidity items(p.(p.3-6) (p.24) 18) Consolidated Wholesale Asset Management (p.balance 13-15)sheet related Conso
Slide 6: Response to coronavirus
Table of Contents Response capital Donations —Moved branch solutions intern distribution and institutions well-being—One-on-one program markets offices including to quickly to from of—Donated clients spread in“2020 amid AEJ—Held international sevenï® toby Private oflimit market Summer conducting cor
Slide 7: Executive summary (1/2)
Table of Contents Executive represents volatility (loss) -Y37.7bn -Y21.3bn shareholders Other adjustment before income in FY2018/19 –Y248.3bn -3 summary strong Wholesale due securities income per before toshare. rebound progress (1/2) -Income 3taxes: income expenses 5. held 3.One-off FY2019/20 Calcu
Slide 8: Factors behind changes in income before income taxes
Table of Contents FY2019/20 Y0.4bn in segment Factors Other behindinchanges FY2018/19 in income (loss) before income taxes Changes from same period last year 1. American Century Investments 4 2. Goodwill impairment charge (Y81.4bn) attributable to Wholesale is booked as Y81bn in Wholesale and
Slide 9: Global spread of coronavirus led to financial market turmoil
Table of Contents Global spread sharply 5 Source: of coronavirus Nomura, based led to onfinancial Bloombergmarket data.turmoil Increased demand for safe assets, 10 year US Treasury yield US Stocks Plunge and Volatility Spikes hits historically low levels Equity Trading Volumes Jump in March Credit s
Slide 10: Executive summary (2/2)
Table of Contents Executive turmoil Y24.7bn; downturn 10% April attributable transactions due 2010, and to Net in summary to market while serious and March loss1 Nomura for FX/EM downturn –impact :uncollateralized (2/2) Y34.5bn; Income Holdings Income and on–before real Cash EPS2: Gain/loss sharehol
Slide 11: Overview of results
Table of Contents Overview — Calculated 248.3 -taxes ofusing results Net annualized income Highlights (loss)1 net(billions income -34.5attributable of—yen, 217.0—EPS2 except to Nomura EPS-Y11.31 and Holdings ROE) — Y66.20—ROE3—8.2% FY2019/20 shareholders FY2019/20 for eachQoQ 1. period NetYoY income
Slide 12: Business segment results
Table of Contents Business 145.9 (loss) securities (approx. “Other”Retail -22% Gain Y23bn) segment held 3% 18.4 on for 648.6 changes Loss 4% results operating 5.6x 17% arising Net to49.4 Subtotal own purposes revenue from -0.1% and valuation 241.7 counterparty Income and before income -20% of income
Slide 13: Retail
Table of Contents Retail but until secondary in discretionary March sales mid Netof on February, stocks revenue bonds the investments market for and and but both investment income investor downturn Japanese and insurance before sentiment ï® trusts and Bonds: income foreign increased, declined droppe
Slide 14: Retail: client assets and inflows
Table of Contents Retail: 1.73m—Net Discretionary 1.74m channelsMarket and Japan investment downturn Wealth inflows led net Management ofto inflows1 cash lower and client -Y61.2bn securities4 Group. assets, -Y61.8bnï® but -Y559.6bn inflows 10 2. Sales Y256.4bn—Inflows of Retail cash of insurance cha
Slide 15: Asset Management
Table of Contents AssetACI-related year approx. Continued business than funding Source: –Management American 10% The cost and inflows Investment equivalent international due Century revenue) tointo Net market ETFs; revenue for Trusts Investments business and our downturn AuM ACI-related Association,
Slide 16: Asset Management: inflows continue to grow
Table of Contents Asset Management: contribution driven by ongoing marketinflows continues Continued 1. Based toinflows grow on on assets into shift DCunder from funds management defined Nomurabenefit Asset (net). pension Management 12 2. plans Source: to public defined The investment Investment con
Slide 17: Wholesale
Table of Contents Wholesale Income progressing regionï®Income to increased, businesses is Y12bn) booked Marchrevenues market as while Net 1.ahead Y81bn This revenue Securitized before dislocation mainly table ofininitial Wholesale and income shows from plan; income Products (approx. Rates net taxes:
Slide 18: Wholesale: Global Markets
Table of Contents Wholesale: Net (billions YoY Global Markets QoQ -16% Key 18% revenues efficiently quarter, revenues, AEJ: Income, changes revenue points QoQ In Equities Markets but Fixed to Rates Fixed of activities while monetized credit Fourth yen) Global mark-to-market FY2019/20 Income, Income
Slide 19: Wholesale: Investment Banking
Table of Contents Wholesale: (Australia) AUD denominated through Wholesale—IPOs Acquisition (Germany) contributions 460m) to 3Q, acquisition Investment Financing to Additional from but Shionogi and operating completed secondary Refinancing of Banking Tier1 Grifols’ COBEX ($2.7bn)—Ranked EMEA Acquisi
Slide 20: Non-interest expenses
Table of Contents Non-interest present expenses: Occupancy impairmentY262.2bn Bonus and charge expenses related provisions (Y81.4bn) (-1% Full depreciation QoQ) year increased attributable Quarter – Compensation (+18% inKey line toQoQ) Wholesale, points with and pay Full benefits Accelerated f
Slide 21: Robust financial position
Table of Contents Robust 17.1x Tier adequacy Nomura on-balance 1 16.6x capital financial Holdings ratio sheet Net 2,606 Consolidated leverage1 position exposures shareholders’ 2,701Balance 2,568 9.0x and leverage 9.9x off-balance equity. (billions sheet 10.6xï® ratio4 2. related of March sheet yen)
Slide 22: Funding and liquidity
Table of Contents Funding Cash redemption andand cash under liquidity deposits certain 1.portion Trading stressed ofassets scenarios. liquidity and portfolio related: Reverse excludesrepo, funds securities, on depositderivatives, at exchanges etc.and Trading segregated liabilities client andfunds. r
Slide 23: Financial Supplement
Table of Contents Financial Supplement
Slide 24: Consolidated balance sheet
Table of Contents Consolidated balance sheet Consolidated balance sheet 20 1. Including securities pledged as collateral.
Slide 25: Value at risk
Table of Contents Value at risk Definition From April 1, 2019, to March 31, 2020 (billions of yen)- 99% confidence level- Maximum: 32.9- 1-day time horizon for outstanding portfolio- Minimum: 3.6- Inter-product price fluctuations considered- Average: 6.7
Slide 26: Consolidated financial highlights
Table of Contents Consolidated financial highlights Full year Quarter 22 1. Quarterly ROE is calculated using annualized year-to-date net income.
Slide 27: Consolidated income
Table of Contents Consolidated income Full year Quarter
Slide 28: Main revenue items
Table of Contents Main revenue items Full year Quarter Commissions Fees from investment banking Asset management and portfolio service fees
Slide 29: Consolidated results: segment and geographic information
Table of Contents Consolidated year service. Quarter This 1. information results: Geographic Income is information not (loss) usedbefore for is business based incomeon management taxesby U.S. GAAP. segment purposes. (Figures and regionAdjustment are preliminary for of the consolidated three months r
Slide 30: Segment Other income (loss) before income taxes
Table of Contents Segment “Other” Income (loss) before income taxes Full year Quarter
Slide 31: Retail related data (1)
Table of Contents Retail related data (1) Full year Quarter 27 1. Excluding former Net & Call.
Slide 32: Retail related data (2)
Table of Contents Retail related data (2) Retail client assets 28 1. Including CBs and warrants. 2. Including annuity insurance.
Slide 33: Retail related data (3)
Table of Contents Retail related data (3) Net inflows of cash and securities1 Full year Quarter 1. Cash and securities inflows minus outflows, excluding regional financial institutions. 29
Slide 34: Retail related data (4)
Table of Contents Retail related data (4) Number of accounts New Individual accounts / IT share1 Full year Quarter 30 1. Ratio of cash stocks traded via Online Services.
Slide 35: Asset Management related data (1)
Table of Contents Asset management for Nomura Management Asset accounting Management, related basis, datato(1) Nomura net Full revenue year1 Corporate for Quarter1 theResearch Asset Assets Management and under Asset management Management, segment. ACI-related by company and Wealth revenue 1. This Sq
Slide 36: Asset Management related data (2)
Table of Contents Trusts Asset Full (billionsor FY2019120 of Investment Total -- yen) (trillions Mar Domestic Nomuia Market ETF--which -- year Mar FY2018/19 net Management inflows/outflows Association, 101.5 37.4 Asset of asset ETFs Jun Quarter public yen) trusts advisory I37.6 Sep 93.9 Management i
Slide 37: Wholesale related data
Table of Contents Wholesale Breakdown Full (billions FY2018/19 FIXed 40 Net 1. This revenue year Income table of Quarter related yen) FY2019/20 of 555.4 presents Wholesale 232.8 data 648.6 337.5 a reconciliation 1Q 142.2 revenues1 68 4Q0aoa 159.5 82.5 YoY78.0 156.7 of the-21.8% 186.5 Global145.9 14.
Slide 38: Wholesale related data and number of employees
Table of Contents Number Breakdown Full (billions FY2018/19 FIXed 40 Net revenue year Income of Quarter employees yen) FY2019/20 of 555.4 Wholesale 232.8 648.6 337.5 34 1Q 142.2 1. revenues1 68 4Q Includes 0aoa 159.5 82.5 YoY Powai 78.0 156.7-21.8% 186.5 office145.9 14.7% in India. -21.11% -21.8% Eq
Slide 39: Disclaimer
Table of Contents Disclaimer Nomura distributed representations regarding without Securities instead statements. other from valuations, of circumstances those reports represent the orthis Litigation according in any competitive This You prior filed specific document or affiliate should document writ
Slide 40: Nomura Holdings, Inc. www.nomura.com
Table of Contents Nomura Holdings, Inc. www.nomura.com