Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2019/20 Earnings Presentation
33 slides from Nomura's earnings presentation, Aug 7, 2019
Slide 1: Consolidated Results of Operations First quarter, year ending March 2020
NOMURA Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2020 (US GAAP) Nomura Holdings, Inc. July 2019 © Nomura
Slide 2: Outline
Outline NOMURA Presentation Executive summary (p. 2) Overview of results (p. 3) Business segment results (p. 4) Retail (p. 5-6) Asset Management (p. 7-8) Wholesale (p. 9-11) Non-interest expenses (p. 12) Robust financial position (p. 13) Funding and liquidity (p. 14) Financial Supplement Consolidate
Slide 3: Executive summary
Executive summary Nomura FY2019/20 1Q highlights Income before income taxes: Y74.8bn; Net income1: Y55.8bn; ROE2: 8.4%; EPS3: Y16.48 All business divisions reported higher net revenue and income before income taxes QoQ All three international regions returned to pretax profit (three region total: Y3
Slide 4: Overview of results
Overview of results NOMURA Highlights (billions of yen, except EPS and ROE) Net revenue Non-interest expenses Income before income taxes Net income1 EPS2 ROE3 FY2019/20 FY2018/19 FY2018/19 QoQ YoY 1Q 4Q 1Q 332.0 301.3 +10% 272.0 +22% 257.2 276.9 -7% 258.4 -0.4% 74.8 24.4 3.1x 13.6 5.5x 55.8 0.8 66.2
Slide 5: Business segment results
Business segment results NOMURA Net revenue and income (loss) before income taxes (billions of yen) FY2019/20 1Q FY2018/19 4Q QoQ FY2018/19 1Q YoY Net revenue Retail 80.6 74.2 +9% 92.8 -13% Asset Management 34.5 30.9 +12% 26.1 +32% Wholesale 159.5 142.2 +12% 137.3 +16% Subtotal 274.6 247.3 +11% 256.
Slide 6: Retail
Retail NOMURA Net revenue and income before income taxes (billions of yen) FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 92.8 85.7 86.8 74.2 80.6 +9% -13% Non-interest expenses 72.9 73.5 72.7 70.9 72.5 +2% -1% Income before income taxes 19.9 12.2 14.0 3.3 8.1 +146% -59% Total sales4 (billions
Slide 7: Retail: Continued to provide services matched to client needs
Retail: Continued to provide services matched to client needs NOMURA Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs) 100.0 31% 31% 31% 31% 31% 30% 80.0 20% 60.0 90.4 90.9 89.9 88.0 90.4 40.0 10% 20.0 0% FY2018/19 FY2019/2
Slide 8: Asset Management
Asset Management NOMURA Net revenue and income before income taxes1 (billions of yen) FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Revenue 26.3 26.1 24.5 26.0 25.8 -1% -2% (excl. ACI-related) ACI-related gain/loss -0.2 -1.5 -8.3 4.9 8.7 +77%—Net revenue 26.1 24.7 16.2 30.9 34.5 +12% +32% Non-interest ex
Slide 9: Asset Management: Steady growth in defined contribution pension funds
Asset Management: Steady growth in defined contribution pension funds NOMURA Flow of funds1 (billions of yen) Investment trust business Investment advisory business 1,500 787 1,000 612 508 372 436 1,141 109 500 156 109 672 503 263 280 0 -354 -164 -500 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Flow of funds
Slide 10: Wholesale
Wholesale NOMURA Net revenue and income (loss) before income taxes1 (billions of yen) FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Global Markets 112.2 123.8 103.5 113.6 135.7 +20% +21% Investment Banking 25.1 23.9 24.7 28.6 23.7 -17% -5% Net revenue 137.3 147.7 128.2 142.2 159.5 +12% +16% Non-interest
Slide 11: Wholesale: Global Markets
Wholesale: Global Markets NOMURA Net revenue (billions of yen) Equities Fixed Income 135.7 123.8 112.2 113.6 103.5 QoQ 53.3 +20% 54.2 45.6 54.5 YoY 65.9 +21% 82.5 69.6 68.0 57.7 37.5 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Key points Net revenue: Y135.7bn (+20% QoQ; +21% YoY) Fixed Income Americas book
Slide 12: Wholesale: Investment Banking
Wholesale: Investment Banking NOMURA Net revenue1 (billions of yen) 28.6 25.1 24.7 23.9 23.7 QoQ -17% YoY -5% FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Key points Net revenue: Y23.7bn (-17% QoQ; -5% YoY)—Japan and international revenues both down from last quarter which included several completed high-prof
Slide 13: Non-interest expenses
Non-interest expenses NOMURA Full year Quarter (billions of yen) (billions of yen) 1,500 400 336.8 Other 1,168.8 1,154.5 282.5 300 258.4 276.9 257.2 Business development 1,000 expenses Occupancy and related 200 depreciation Information processing and communications 500 Commissions and floor 100 brok
Slide 14: Robust financial position
Robust financial position NOMURA Balance sheet related indicators and capital ratios Mar 2019 Jun 2019 Total assets Y41.0trn Y42.5trn Shareholders’ equity Y2.6trn Y2.7trn Gross leverage 15.6x 16.0x Net leverage1 9.0x 10.0x Level 3 assets2 Y0.6trn Y0.6trn (net) Liquidity portfolio Y4.9trn Y4.8trn (bi
Slide 15: Funding and liquidity
Funding and liquidity NOMURA Balance sheet Balance sheet structure (As of June 2019) Highly liquid, healthy balance sheet Assets Liabilities and equity Unsecured funding2 structure – 77% of assets are highly liquid Just under 80% of unsecured funding trading and related assets that are is long-term
Slide 16: Financial Supplement
Financial Supplement NOMURA
Slide 17: Consolidated balance sheet
Consolidated balance sheet NOMURA Consolidated balance sheet (billions of yen) Mar 31, Jun 30, Increase Mar 31, Jun 30, Increase 2019 2019 (Decrease) 2019 2019 (Decrease) Assets Liabilities Total cash and cash deposits 3,262 3,077 -184 Short-term borrowings 842 750 -91 Total payables and deposits 3,
Slide 18: Value at risk
Value at risk NOMURA Definition From April 1, 2019, to June 30, 2019 (billions of yen) 99% confidence level Maximum: 6.6 1-day time horizon for outstanding portfolio Minimum: 3.6 Inter-product price fluctuations considered Average: 4.9 (billions of yen) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Ma
Slide 19: Consolidated financial highlights
Consolidated financial highlights NOMURA Full year (billions of yen) 300 7.9% 10% Net income (loss) 8% 200 attributable to Nomura 6% Holdings, Inc. (“NHI”) 100 4% shareholders 219.3 2% 0 0% ROE(%) -100 -100.4 -200 -300 FY2017/18 FY2018/19 Net revenue 1,497.0 1,116.8 Income (loss) before income taxes
Slide 20: Consolidated income
Consolidated income NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Revenue Commissions1 373.3 293.1 79.5 74.8 72.7 66.1 68.2 Fees from investment banking 101.7 101.5 24.0 19.1 33.1 25.3 27.3 Asset management and portfolio service fees 245.6 245.5 63
Slide 21: Main revenue items
Main revenue items NOMURA Full year Quarter FY2018/19 FY2019/20 FY2017/18 FY2018/19 (billions of yen) 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions1 243.8 192.0 50.2 47.4 50.5 43.9 42.6 Other brokerage commissions 17.0 14.4 4.1 3.4 4.3 2.5 2.7 Commissions Commissions for distribution of investment trus
Slide 22: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region NOMURA Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter FY2018/19 FY2019/20 (billions of yen) FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Retail 103.1 49.5 19.9 12.2 14.0 3
Slide 23: Segment "Other"
Segment “Other” NOMURA Income (loss) before income taxes Full year Quarter (billions of yen) 80.0 60.0 56.4 40.0 31.5 20.0 15.1 17.8 0.0 -2.8 -11.2 -20.0 -24.5 -40.0 1 2 1 2 3 4 5 FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic -6.5 1.8 -13.8 -16.0 25.1 6.6
Slide 24: Retail related data (1)
Retail related data (1) NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q QoQ YoY Commissions 192.7 142.8 40.8 36.8 34.1 31.0 34.5 11.0% -15.5% Of which, stock brokerage commission 82.2 60.2 16.8 15.3 15.8 12.2 12.5 2.0% -25.9% Of which, commissions fo
Slide 25: Retail related data (2)
Retail related data (2) NOMURA Retail client assets1 (trillions of yen) 140 Other 122.8 117.7 118.6 114.7 120 114.7 110.0 113.1 Foreign investment trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2017/18 FY2018/19 FY2018/19 FY20
Slide 26: Retail related data (3)
Retail related data (3) NOMURA Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 2,500 2,500 2,015 2,000 2,000 1,762 1,500 1,500 1,000 1,000 682 500 500 0 0 -37 -121 -500 -500 -393 -403 FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q 1. Cash and securit
Slide 27: Retail related data (4)
Retail related data (4) NOMURA Number of accounts (thousands) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,318 5,338 5,318 5,318 5,354 5,338 5,335 Equity holding accounts 2,822 2,908 2,823 2,829 2,905 2,908 2,914 Online service accounts1 4,387 4,569 4,4
Slide 28: Asset Management related data (1)
Asset Management related data (1) NOMURA Full year1 Quarter1 FY2018/19 FY2019/20 FY2017/18 FY2018/19 QoQ YoY (billions of yen) 1Q 2Q 3Q 4Q 1Q Revenue (excl. ACI-related) 105.3 102.9 26.3 26.1 24.5 26.0 25.8 -0.6% -1.7% ACI-related gain/loss 22.1 -5.0 -0.2 -1.5 -8.3 4.9 8.7 0.8 -Net revenue 127.3 97.
Slide 29: Asset Management related data (2)
Asset Management related data (2) NOMURA Asset inflows/outflows by business1 Full year Quarter FY2018/19 FY2019/20 (billions of yen) FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Investment trusts business 3,131 2,187 263 280 1,141 503 672 of which ETFs 3,022 2,531 147 510 1,391 483 642 Investment advisory bus
Slide 30: Wholesale related data
Wholesale related data NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 715.3 555.4 137.3 147.7 128.2 142.2 159.5 12.1% 16.2% Non-interest expenses 614.7 666.8 144.7 142.7 224.1 155.3 139.5 -10.2% -3.6% Income (loss) before income
Slide 31: Number of employees
Number of employees NOMURA FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Japan 15,819 15,852 16,474 16,296 16,138 15,852 16,423 Europe 3,057 2,909 3,030 3,020 2,963 2,909 2,775 Americas 2,362 2,357 2,364 2,390 2,384 2,357 2,230 Asia and Oceania1 6,810 6,746 6,873 6,843 6,796 6,
Slide 32: Disclaimer
Disclaimer NOMURA 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
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com NOMURA