Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2020/21 Earnings Presentation
33 slides from Nomura's earnings presentation, Aug 5, 2020
Slide 1: Consolidated Results of Operations, First quarter, year ending March 2021
Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2021 (US GAAP) Nomura Holdings, Inc. July 2020 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2) Consolidated balance sheet (p. 16) Overview of results (p. 3) Value at risk (p. 17) Business segment results (p. 4) Consolidated financial highlights (p. 18) Retail (p. 5-6) Consolidated income (p. 19) Asset Management (p. 7-8) Main
Slide 3: Executive summary
Executive summary Income (loss) before income taxes, net FY2020/21 1Q highlights income (loss)1 Firmwide (billions of yen) ® Income before income taxes: Y181.8bn; Net income1: Y142.5bn; ROE2: 21.0%; EPS3: Y45.65 income second highest Income (loss) before income taxes 181.8 – Income before income tax
Slide 4: Overview of results
Overview of results Highlights (billions of yen, except EPS and ROE) FY2020/21 FY2019/20 FY2019/20 QoQ YoY 1Q 4Q 1Q Net revenue 460.7 237.5 94% 332.0 39% Non-interest expenses 278.9 262.2 6% 257.2 8% Income (loss) before income 181.8 -24.7—74.8 143% taxes Net income (loss)1 142.5 -34.5—55.8 155% EPS
Slide 5: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2020/21 FY2019/20 QoQ FY2019/20 YoY 1Q 4Q 1Q Net revenue Retail 81.1 88.8 -9% 80.6 1% Asset Management 34.0 7.0 4.8x 34.5 -1% Wholesale 248.7 145.9 70% 159.5 56% Subtotal 363.8 241.7 50% 274.6 32% Other* 9
Slide 6: Retail
Retail Net revenue and income before income taxes Key points ® Net revenue: Y81.1bn (-9% QoQ; +1% YoY) (billions of yen) ® Income before income taxes: Y15.1bn (-18% QoQ; +86% YoY) FY2019/20 FY20/21 ® Solid results despite restrictions on sales activities—April and May revenues impacted by weak inves
Slide 7: Retail: Continued to provide services matched to client needs
Retail: Continued to provide services matched to client needs Recurring revenue assets and recurring revenue (trillions of yen) Recurring revenue assets Recurring revenue (rhs) (billions of yen) Jun / 1Q Mar / 4Q ® Recurring revenue assets as of June-end increased QoQ on the back of 20.0 30.0 market
Slide 8: Asset Management
Asset Management Net revenue and income before income taxes1 Key points (billions of yen) ® Net revenue: Y34.0bn (4.8x QoQ; -1% YoY) FY2019/20 FY20/21 ® Income before income taxes: Y19.2bn (+6% YoY) QoQ YoY Improvement in American Century Investments (ACI) gain/loss led to 1Q 2Q 3Q 4Q 1Q significant
Slide 9: Asset Management: Expanding bank channel
Asset Management: Expanding bank channel Nomura Asset Management public investment trust market Flow of funds1 share2 (billions of yen) Investment trust business Investment advisory business 1,500 29.0% 28.5% 28.2% 1,000 27.8% 27.9% 707 28.0% 27.7% 494 146 1,210 500 381 1,046 672 198 508 121 560 259
Slide 10: Wholesale
Wholesale Net revenue and income (loss) before income taxes1 Key points (billions of yen) FY2019/20 FY20/21 ® Net revenue: Y248.7bn (+70% QoQ; +56% YoY) QoQ YoY 1Q 2Q 3Q 4Q 1Q ®Income before income taxes: Y87.9bn (8.7x QoQ; 4.4x YoY) Global Markets 135.7 132.8 160.1 134.3 232.6 73% 71% Record3 ® qua
Slide 11: Wholesale: Global Markets
Wholesale: Global Markets Net revenue FY2020/21 1Q net revenue by region (billions of yen) YoY QoQ Equities Fixed Income 232.6 Global Markets Global QoQ 160.1 77.7 Markets Fixed +73% Equities 135.7 134.3 Income 132.8 YoY 60.3 +71% Americas 53.3 55.6 56.3 154.9 82.5 99.7 EMEA 77.2 78.0 FY2019/20 FY20
Slide 12: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue Business momentum (billions of yen) ® Supported several high-profile bond issuances in Japan and internationally, while Americas and AEJ ECM had a solid quarter 23.9 26.4 23.7 QoQ +38% Hulic UK DMO 16.1 Subordinated Bond (Y200bn) Gilts (9.0bn) YoY 11.6 -32%
Slide 13: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen) ® Non-interest expenses: Y278.9bn (+6% QoQ) 1,500 400 Other – Compensation and benefits (+32% QoQ) 1,154.5 Increase in line with pay for 278.9 performance 1,039.6 300 Business development 1,000 257.2 254.9 265.3 2
Slide 14: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 (trillions of yen) Mar 2020 Jun 2020 RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) 20.0 17.3% 18.0% 20.0% ® Total assets Y44.0trn Y41.5trn 16.9% 15.3% 15.7% ® Shareholders’ equity Y2.7
Slide 15: Funding and liquidity
Funding and liquidity Balance sheet Balance sheet structure (As of June 2020) ® Highly liquid, healthy balance sheet Assets Liabilities and equity Unsecured funding2 structure –75% of assets are highly liquid ® More than 70% of unsecured funding is trading and related assets that are long-term debt
Slide 16: Financial Supplement
Financial Supplement
Slide 17: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Jun 30, Increase Mar 31, Jun 30, Increase 2020 2020 (Decrease) 2020 2020 (Decrease) Assets Liabilities Total cash and cash deposits 3,875 4,089 214 Short-term borrowings 1,487 1,392 -94 Total payables and deposits 4,397
Slide 18: Value at risk
Value at risk Definition From April 1, 2020, to June 30, 2020 (billions of yen)- 99% confidence level- Maximum: 27.0- 1-day time horizon for outstanding portfolio- Minimum: 12.0- Inter-product price fluctuations considered- Average: 19.6 (billions of yen) FY2018/19 FY2019/20 FY2019/20 FY2020/21 Mar
Slide 19: Consolidated financial highlights
Consolidated financial highlights Full year Quarter (billions of yen) (billions of yen) 300 12% 300 Net income (loss) 217.0 attributable to Nomura 8.2% 25% Holdings, Inc. (“NHI”) 200 8% 21.0% shareholders 200 20% 14.6% 142.5 138.6 15% 100 4% 12.6% 100 8.4% 8.2% 10% ROE(%) 57.1 0 0% 55.8 5% 0 0% -100
Slide 20: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2019/20 FY2020/21 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Revenue Commissions 293.1 308.8 68.2 65.3 79.3 96.1 85.5 Fees from investment banking 101.5 103.2 27.3 22.3 26.8 26.8 10.8 Asset management and portfolio service fees 245.5 238.2 60.0 59.9
Slide 21: Main revenue items
Main revenue items Full year Quarter FY2019/20 FY2020/21 FY2018/19 FY2019/20 (billions of yen) 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions 192.0 196.5 42.6 42.5 48.1 63.3 62.9 Other brokerage commissions 14.4 14.4 2.7 2.8 3.0 5.9 4.3 Commissions Commissions for distribution of investment trusts 56.6
Slide 22: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter FY2019/20 FY2020/21 (billions of yen) FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Retail 49.5 49.4 8.1 5.3 17.6 18.4 15.1 A
Slide 23: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 160 120 99.2 93.4 80 57.4 40 31.5 0 2.2 -2.8 -40 -27.9 12 12345 FY2019/20 FY2020/21 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic 1.8 17.5 12.8 7.0 2.3 -4.6 5.6 hedging transactions Realize
Slide 24: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2019/20 FY2020/21 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q QoQ YoY Commissions 142.8 153.2 34.5 31.2 42.2 45.4 40.8 -10.0% 18.4% Of which, stock brokerage commission 60.2 61.2 12.5 12.6 17.0 19.1 21.7 13.9% 74.3% Of which, commissions for distr
Slide 25: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 Other 122.3 112.2 113.1 114.8 Foreign investment 120 114.7 104.0 104.0 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2018/19 FY2019/20 FY2019/20 FY2020/21 Ma
Slide 26: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 2,400 2,400 2,015 1,800 1,800 1,200 1,200 600 600 424 256 0 0 -121 -6 -600 -429 -600 -560 FY2019/20 FY2020/21 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q 1. Cash and securities inflows minus outf
Slide 27: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2018/19 FY2019/20 FY2019/20 FY2020/21 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,338 5,319 5,335 5,326 5,328 5,319 5,323 Equity holding accounts 2,908 2,920 2,914 2,913 2,897 2,920 2,935 NISA accounts opened (accumulated)1 1,702 1,737
Slide 28: Asset Management related data (1)
Asset Management related data (1) Full year1 Quarter1 FY2019/20 FY2020/21 (billions of yen) FY2018/19 FY2019/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Revenue (excl. ACI-related gain/loss) 102.9 100.2 25.8 25.0 26.0 23.4 23.7 1.5% -8.1% ACI-related gain/loss -5.0 -7.6 8.7 0.7 -0.6 -16.4 10.3—18.8% Net revenue 97.8
Slide 29: Asset Management related data (2)
Asset Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2019/20 FY2020/21 (billions of yen) FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Investment trusts business 2,187 1,788 672 259 296 560 1,210 of which ETFs 2,531 2,133 642 246 115 1,130 1,153 Investment advisory business
Slide 30: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2019/20 FY2020/21 FY2018/19 FY2019/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 555.4 648.6 159.5 156.7 186.5 145.9 248.7 70.4% 55.9% Non-interest expenses 666.8 556.4 139.5 137.8 143.3 135.8 160.8 18.4% 15.3% Income (loss) before income taxes -1
Slide 31: Number of employees
Number of employees FY2018/19 FY2019/20 FY2019/20 FY2020/21 Mar Mar Jun Sep Dec Mar Jun Japan 15,852 15,748 16,423 16,119 15,971 15,748 16,069 Europe 2,909 2,691 2,775 2,734 2,658 2,691 2,728 Americas 2,357 2,120 2,230 2,167 2,116 2,120 2,164 Asia and Oceania1 6,746 6,070 6,684 6,692 6,554 6,070 6,1
Slide 32: Disclaimer
Disclaimer This document is produced by Nomura Holdings, Inc. (“Nomura”). 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 securities issued by Nomura or any affiliate thereof. Offers to sell, s
Slide 33: Nomura Holdings, Inc. www.nomura.com
Nomura Holdings, Inc. www.nomura.com