Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2006 Earnings Presentation
35 slides from Nomura's earnings presentation, Jul 28, 2005
Slide 1: Q1 FY2006 Results (US GAAP)
2006 3 1 (US GAAP) 2005 7 2006 3 1 2005 7 28 6 30 CFO 1
Slide 2: 2
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Slide 3: Contents
2006 3 1 (P4,5) (P6) (P17) (P18) (P7) (P19) P8 (P20) P9) (P21) / (P22) (P10) / P23 (P11) (P24) (P25) (P12) (P26) (P27) (P13) (P28) (P14) P29 (P15) (P30) (P31) (P32) P33 P34 3 3
Slide 4: Consolidated results summary and ROE
2006 3 1 1 2005.4 2005.6 2006 3 1Q 2005 3 1Q 2005 3 4Q 286,735 213,928 234,533 34% 22% 256,031 141,462 167,563 81% 53% 30,704 72,466 66,970 -58% -54% 8,321 40,832 25,543 -80% -67% 4.30 21.03 13.16 -80% -67% ROE 1.8% 9.0% 5.5% 2005.3 34,163,927 30,013,930 34,488,853 -324,926 1,843,316 1,833,405 1,868
Slide 5: Consolidated income statement
2006 3 1 2 2005.4 2005.6 2006 3 1Q 2005 3 1Q 2005 3 4Q 421,119 275,295 328,353 53% 28% 55,152 69,533 60,570 -21% -9% 14,719 15,434 26,137 -5% -44% 19,942 18,185 21,135 10% -6% 70,802 53,567 70,337 32% 1% -2,490 498 11,508 - - 133,415 81,891 96,351 63% 38% -2,825 10,271 8,915 - - 125,373 17,368 21,58
Slide 6: Quarterly results by business segment
2006 3 2005 3 2004 3 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q 84.8 -2% 7% 79.6 73.0 64.8 87.0 79.8 75.4 75.6 75.0 54.5 2% -9% 60.0 55.0 54.9 53.3 59.8 55.3 56.9 54.2 30.3 -10% 55% 19.6 18.0 9.8 33.7 20.0 20.1 18.7 20.8 49.8 -31% -29% 69.8 56.6 44.9 71.8 72.8 41.6 87.1 82.6 50.5 23% -11% 56.4 43.8 41.5 41.2 41.2 3
Slide 7: Domestic retail results and net income
1 7% 7% 55% 55% 452 1% 34 41 195 43% 11 2,064 z 148 48% z 16,423 13% 1 z 37 43% 275 36 208 24% MTN z 12.9 10% 71 3 z 6 167.9 1.1 z 5,043 13% 100 10 87.0 84.8 90 79.8 79.6 75.0 75.6 75.4 73.0 80 64.8 70 60 50 40 33.7 30.3 30 19.6 20 18.0 20.8 18.7 20.1 20.0 9.8 10 0 2004 3 2005 3 20
Slide 8: Retail client assets and sales
2 40 40 * ** CB *** 45 39.8 40.7 38.5 40 35.2 36.2 35.6 35 31.3 32.5 29.3 30 25 20 15 10 5 0 2003 6 2003 9 2003 12 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 3.9 3.7 3.8 3.7 3.6 3.8 3.6 3.7 3.7 5.1 5.3 5.7 6.1 6.5 7.0 7.2 7.5 7.7 11.1 12.8 13.7 16.0 16.9 15.9 18.5 19.1 19.5 2.2 2.4 2.5 2.7 2.7 2.6 2
Slide 9: Retail business trends
3 900 10 844.3 800 700 600 500 400 318.1 300 258.9 275.5 228.0 200 162.4 146.1 146.3 128.2 100 0 2004 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 9 9
Slide 10: Wholesale results
29 29 MPO z 50 740 05.3 2,100 z 50 z Caja Madrid 2 45 z z 300 z 6.5 z 4.2 z 4 3 100 (10 ) 100 (10 ) 87.1 90 82.6 90 80 72.8 80 71.8 69.8 70 70 56.6 60 60 49.8 50 41.6 44.9 50 45.6 40 41.1 40 30 31.6 30 30.6 20 20 12.8 13.3 10 10 3.4 2.6 -0.7 0 0 2004 3 2005 3 2006 3 -10 -10 1Q 2Q
Slide 11: Investment banking and MPO
34% 34% IPO PO CB 1 4,421 63% MPO (Multiple Private Offering) 1,370 9 895 63% z 600 z ACCESS 500 z IPO 72 M&A z PO 326 z CB 100 z 1: 2005 4 ~6 z POWL Public Offering Without Listing z 230 z 2005 M&A 1 2 2: 2005 1 ~6 z 271 25 10 22.9 20.6 20.2 19.4 19.4 20 18.0 15 12.9 12.9 12.8 1
Slide 12: Merchant banking and NPF
33 33 500 10 429.5 429.3 z NPF 112 357.2 364.5 376.6 400 327.2 104.0 111.2 64.3 68.1 66.0 37.4 300 200 291.2 289.8 300.2 308.5 325.5 318.1 100 0 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 12.0 10 10.4 10.0 8.0 7.3 7.1 7.7 6.0 4.9 4.8 4.0 2.8 2.0 0.0 -0.2 -2.0 -1.4 -2.3 -2.3 -4.0 -4.1 -3.5 -3.3
Slide 13: Asset management and overseas business
1 19% 19% 10 1,400 z 495 1,993 6 1,200 z A/B 269 518 US 1,000 800 z 499 1,078 600 US z W 464 400 200 2005 6 1,311 3 47% 0 2005 6 2003 12 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 14.0 10 12.3 12.5 12.0 10.6 11.0 10.5 10.0 9.7 9.0 8.3 8.0 8.0 6.0 4.0 3.4 2.2 3.3 2.6 2.0 0.8 0.1 1.0 0.0 -
Slide 14: Asset management: assets under management
2 10 18 14 16.0 16.8 15.4 15.7 15.7 15.7 16 15.2 15.1 14.5 12 14 10 12 10 8 8 6 ( 6 4 NCRAM 4 *NCRAM 2 2 Nomura Corporate Research and Asset Management 0 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 3.5 4.3 4.3 4.5 4.6 4.1 4.4 4.4 5.0 7.0 7.0 6.6 6.3 6.0 5.7 5.6 5.6 5.4 0.3 0.3 0.4 0.4 0.5 0.6
Slide 15: Retail and expenses trends
10 50 PE 39.2 37.7 37.8 38.6 40 36.4 35.9 35.9 36.4 34.3 9% 9% 30 34.6 31.5 30.6 29.3 28.0 28.0 / 23 25 25.6 26.7 20 24.4 10 PE 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 180 10 04.3 05.3 06.3 146.8 150 134.7 134.0 125.5 125.5 124.7 126.4 123.5 118.3 120 90 60 30 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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Slide 17: Segment detail: domestic
1 80 10 69.5 70 62.9 60.6 56.0 57.6 60 55.2 50 45.6 46.3 40 33.8 ( ) 30 20 10 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 12.1 26.2 25.6 28.2 36.5 19.9 19.3 27.3 20.8 ( ) 6.8 13.4 13.1 12.1 12.6 9.1 7.7 10.7 8.0 3.1 2.6 1.5 5.0 3.1 2.9 2.9 4.2 2.8 7.2 8.2 10.9 11.1 12.1 7.3 10.5 11.7 17.5 4.5
Slide 18: Segment detail
2 10 32.3 35 28.2 30 26.1 24.4 25 19.9 18.4 20 14.5 15.4 14.7 15 10 5 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2.9 10.0 14.3 17.5 5.7 22.0 10.5 10.8 4.9 8.8 6.1 6.1 5.3 4.9 4.4 3.5 7.7 3.6 2.6 3.8 4.0 5.4 4.8 5.9 4.4 7.5 6.2 0.2 -0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.1 14.5 19.9 24.4 28.2 15.4 32.3
Slide 19: Segment detail
3 25 10 21.1 19.8 19.3 19.9 20 18.6 18.2 17.0 16.8 13.7 15 10 5 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 9.4 10.8 11.8 12.1 12.5 12.4 13.6 12.6 13.5 1.9 3.6 2.5 4.1 2.9 4.7 3.1 5.4 3.4 2.4 2.6 2.5 2.5 2.7 2.7 2.6 3.2 3.1 13.7 17.0 16.8 18.6 18.2 19.8 19.3 21.1 19.9 19 19
Slide 20: Segment detail
4 10 140 120 113.9 99.5 100 86.4 84.4 74.6 74.7 80 67.3 60 50.1 42.8 40 20 0 2004 3 2005 3 2006 3 -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 60.3 33.2 27.0 31.8 20.7 24.4 36.6 39.1 31.7 20.1 32.8 6.2 16.2 30.0 -1.7 17.8 30.7 38.9 -0.6 8.3 -1.5 8.4 3.4 -1.8 -1.9 12.0 -2.3 34.1 25.1 11.1 30.0 20.5 29.1 22.2 2.5 -
Slide 21: Balance sheet items
2005 3 2005 6 2005 3 2005 6 1,186,756 1,271,279 517,065 490,574 116,054 117,533 1,244,528 939,034 1,042,483 1,448,673 21,666,185 20,857,012 14,389,045 15,290,308 5,332,173 5,359,304 703,289 668,108 15,600,521 14,595,506 2,798,560 2,943,093 444,615 436,314 2,068,003 2,067,800 32,620,424 32,320,611 1,
Slide 22: Other income and expense items
/ 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 67.1 22.0 38.1 47.7 175.0 29.2 -13.0 5.3 0.9 -1.8 -8.7 -2.8 0.4 5.1 1.7 0.5 7.8 8.1 2.5 0.4 2.5 1.8 7.2 2.7 -0.7 -1.1 1.6 4.8 4.5 0.5 3.1 -2.1 -0.9 1.6 1.7 -0.3 9.8 -15.4 5.8 8.2 8.4 -11.0 3.1 1.9 -0.4 4.2 8.9 4.3 5.4 -5.8 11.1 19.3 29.8 1.5 72.5 16.2 49.2 67.0 204.8 3
Slide 23: Results by period
/ 1 2006 3 2005 3 2005 3 4 286,735 213,928 234,533 34% 22% 256,031 141,462 167,563 81% 53% 30,704 72,466 66,970 -58% -54% 2006 3 2005 3 2005 3 4 126,289 19,890 25,032 535% 405% 122,008 16,742 20,784 629% 487% 4,281 3,148 4,247 36% 1% 2006 3 2005 3 2005 3 4 160,446 194,038 209,501 -17% -23% 134,023 1
Slide 24: Revenue and expense detail
/ 2 2004 3 2005 3 2006 3 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 65.9 67.7 61.8 63.9 65.9 64.2 67.4 77.4 87.1 36.6 36.1 36.1 35.5 37.7 39.1 40.3 42.5 54.2 36.4 35.9 35.9 34.3 36.4 37.7 37.8 39.2 38.6 0.2 0.2 0.2 1.3 1.3 1.4 2.6 3.2 15.6 29.3 31.6 25.7 28.4 28.3 25.1 27.1 34.9 32.9 29.3 31.5 25.6 28.0 28.0 24.
Slide 25: Balance sheet
/ 3 2005 6 10 34,164 33,111 1,053 440 2005 6 10 32,321 31,366 955 118 436 25 25
Slide 26: Expense trends
80 72.5 67.9 70.0 70 63.8 65.0 63.5 57.6 58.2 60 52.9 50 40 30 20 10 0 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 24.8 28.7 30.3 35.9 37.2 34.9 39.2 40.0 41.9 17.9 18.4 17.5 17.3 17.3 18.3 18.2 19.2 19.7 2.6 2.8 3.1 3.3 3.5 3.4 3.7 3.9 4.3 6.3 6.2 5.8 5.6 5.3 4.9 4.8 4.9 4.6 1.3 1.4 1.5 1.6 1.7
Slide 27: Segment trends
2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 976.8 405.1 316.3 291.8 228.7 243.0 313.1 369.6 304.8 9.6 10.1 12.3 15.0 14.5 9.2 12.5 13.7 19.5 2.2 2.6 3.4 2.9 2.3 1.6 1.3 1.2 1.1 2.6 4.9 6.6 7.4 7.6 5.0 9.1 10.0 14.8 4.8 2.5 2.3 4.7 4.6 2.6 2.1 2.6 3.7 3.2 3.5 3.4 3.7 3.9 3.2 3.4 3.7 3.9 2.0 2.6 2
Slide 28: Operating metrics
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1,168 1,215 1,290 1,367 1,452 1,533 1,651 1,716 1,774 45% 46% 46% 49% 49% 51% 50% 51% 52% 21% 21% 21% 23% 23% 25% 23% 24% 25% 3,145 3,195 3,285 3,347 3,413 3,479 3,666 3,708 3,753 1,308 1,323 1,349 1,369 1,394 1,446 1,659 1,668 1,679 16 21 24 26 27 28 65 22 27 28 28
Slide 29: Margins and ratios
2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 5.0 9.1 9.8 11.4 13.9 10.0 9.9 14.4 12.9 8% 10% 9% 10% 10% 7% 8% 8% 7% 3.5 4.9 4.3 6.6 5.7 4.2 4.7 6.5 4.9 8.1 9.1 6.8 7.9 9.3 7.5 7.2 9.3 8.8 15% 16% 17% 15% 18% 16% 16% 17% 18% 18.4 18.7 18.1 19.2 19.4 20.3 19.9 20.7 19.8 14% 17% 12% 19% 16% 15% 25%
Slide 30: Underwriting share trends
* 2004 3 2005 3 2006 3 1Q 1Q-2Q 1Q-3Q 1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q 1Q IPO 5% 10% 26% 27% 45% 42% 36% 32% 13% PO 37% 58% 39% 33% 17% 26% 26% 25% 24% CB 9% 14% 26% 28% 21% 20% 18% 19% 26% 37% 40% 35% 31% 24% 23% 29% 23% 28% 22% 22% 20% 19% 17% 18% 18% 17% 21% 30 30
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Slide 32: Revenue composition
50 100% 45 90% 40 80% 35 70% ( ) 30 60% 25 50% ( 20 40% 15 30% ( 10 20% 5 10% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 18.3 20.1 21.3 23.3 24.8 25.6 27.4 28.9 32.0 17.3 17.1 16.1 15.8 14.8 13.9 13.6 13.5 13.0 19% 21% 20% 19% 19% 16% 16% 15% 16% 40% 41% 41% 40% 41% 41% 41% 42% 42% 32 32
Slide 33: Value at Risk (VaR)
VaR VaR 10 2.33 99% 05.4.1 05.6.30 1 5.7 3.8 4.8 10 2003 6 2003 9 2003 12 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 2.1 2.3 2.9 3.3 3.0 5.6 2.9 3.0 4.2 2.5 2.4 2.5 2.0 2.8 2.6 3.1 2.8 3.3 0.3 0.3 0.3 0.5 0.4 0.3 0.6 0.7 1.0 4.9 4.9 5.7 5.8 6.3 8.5 6.5 6.5 8.5 (1.5) (1.3) (1.8) (1.
Slide 34: Headcount and branches
2003 6 2003 9 2003 12 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 622 646 652 655 668 684 704 718 746 821 843 852 866 914 935 968 1,026 1,069 1,439 1,372 1,439 1,403 1,407 1,458 1,499 1,535 1,524 1,960 1,901 1,909 1,915 1,985 1,922 1,940 1,875 1,984 9,561 9,435 9,316 9,148 9,430 9,424 9,326 9,190 9,6
Slide 35: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com 35 35