Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2024/25 Earnings Presentation
33 slides from Nomura's earnings presentation, July 2024
Slide 1: CFO overview of first quarter results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2025 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Outline
Outline Presentation Financial Supplement NOMURA * Executive summary (p. 2) * Overview of resus (p. 3) = Business segment resuts (p. 4) * Wealth Management (p. 5-7) = Investment Management (p. 8-9) = Wholesale (p. 10.12} = Non-interest expenses (p. 13) = Robust financial position (p 14) Consobdated
Slide 3: Groupwide net revenue and income summary
Groupwide net revenue came in at 454.4 billion yen, up 2 percent over last quarter. Income before income taxes grew 12 percent to 102.9 billion yen, while net income was 68.9 billion yen, an increase of 21 percent compared to last quarter. As you can see on the upper right, our earnings momentum has
Slide 4: Performance of each business
Wealth Management and Investment Management saw client assets continue to grow on the back of inflows, while stable recurring revenue and business revenue reached all-time highs. We are making steady progress in expanding our stable businesses as announced at our investor day. While Wholesale income
Slide 5: Business segment results
NOMURA Business segment results Net revenue and income (loss) before income taxes (tera otyes) Fy20zies Frav2a25 1a 2 32 4Q 170 ao vor Net revenue Weakn Managemen $2.1 9 26 1088 114.0 * aN ireestment Managemen m5 45.4 36.9 43.6 ana wn om Whoksae 190.9 met 217.0 2642 244.8 ss a ‘Subtotal 3094 MB1 358
Slide 6: Wealth Management first quarter results
Wealth Management first quarter net revenue increased 5 percent to 114 billion yen and income before income taxes gained 9 percent to 42.3 billion yen, representing the highest levels in nine years since FY2015/16 1Q. Thanks to our large-scale reorganization last spring and the further deepening of
Slide 7: Total sales by product
Please turn to page six for an update on total sales by product. Total sales increased 9 percent to 6.8 trillion yen. Sales of stocks were strong at 4.8 trillion yen, including 1 trillion yen from a tender offer. Excluding that, sales of secondary stocks slowed. Sales of investment trusts were up 27
Slide 8: Wealth Management KPIs
KPIs on page seven are trending smoothly. As shown on the top left, net inflows of recurring revenue assets were 387.9 billion yen, representing a solid start towards achieving our annual target of 800 billion yen. Recurring revenue assets shown on the right were at a record high of 24.3 trillion ye
Slide 9: Investment Management overview
Please turn to page eight for an overview of Investment Management. Net revenue increased 9 percent to 47.7 billion yen and income before income taxes were up 31 percent at 23.2 billion yen. As shown on the bottom left, stable business revenue was 39.1 billion yen, a record quarterly high since the
Slide 10: Asset management business: AUM and net inflows
The top left shows June-end assets under management of 92.5 trillion yen, representing the sixth straight quarterly record high and outstripping our March 2025 KPI target of 89 trillion yen. Quarterly net inflows shown on the bottom left were 950 billion yen, of which 700 billion yen flowed into the
Slide 11: Wholesale overview
Please turn to page 10 for Wholesale. Wholesale net revenue slipped 4 percent to 244.8 billion yen. As shown on the bottom left, Global Markets increased 2 percent while Investment Banking dropped 25 percent from the strong prior quarter. Wholesale expenses declined 4 percent as last quarter’s 14 bi
Slide 12: Global Markets performance
Global Markets net revenue increased 2 percent to 207.7 billion yen. Fixed Income net revenue was up 3 percent at 125.6 billion yen. Macro Products was roughly flat as market participants remained on the sidelines on uncertainty over the rate cut in the US. Spread Products reported significantly hig
Slide 13: Investment Banking performance
Please turn to page 12 for Investment Banking. Net revenue slowed 25 percent from the particularly strong previous quarter to 37.2 billion yen. Japan performance remained robust with Advisory revenues at the highest quarterly level since comparisons possible in the year ended March 2017. Internation
Slide 14: Non-interest expenses
Please turn to page 13 for an overview of non-interest expenses. Groupwide expenses were roughly flat at 351.5 billion yen. Compensation and benefits increased 4 percent to 184.5 billion yen due mainly to yen depreciation but also impacted by an increase in fixed pay and severance-related expenses.
Slide 15: Financial position and capital ratios
Please turn to page 14 for an update of our financial position. The table on the bottom left shows Tier 1 capital of 3.5 trillion yen, up by about 70 billion yen from the end of March. Risk-weighted assets increased 1.3 trillion yen to 20 trillion yen. This resulted in a Tier 1 capital ratio of 17.4
Slide 16: Business outlook and July performance
While Wholesale performance still has room for improvement, all business lines reported higher revenues compared to the same quarter last year and we are making progress in diversifying and stabilizing our revenues as discussed at investor day. Since hitting a record high in July, the Nikkei Average
Slide 17: Closing remarks
Traditionally, this period is a slow season as market participants take a break for the summer, but we expect to see volatility in the market over the US presidential election in the autumn and monetary policy by central banks around the world. We will manage risk and cost appropriately while moneti
Slide 18: Value at risk
Value at risk = Definition = FromApré 1, 2023, to June 30, 2024 (oilons of yen) — 95%6 confidence level ~ Maximum: 6.8 — 1-day time horizon for outstanding partfuko - Minimum. 52 — Inter-product price fluctusions considered ~ Average = 6.0 (otees af yen) Fyov22) Fy20zW2e = FYaI2N28 Fraczai2s Mar Mw
Slide 19: Consolidated financial highlights
NOMURA Consolidated financial highlights (omnes of) _ 20 1% 100) 1% 165.8 sme Pat incor (lost) 120 a afvibulable to Nomura beasange. ine. HOA) — meen too | 928 ' a% ROEM) is a as 9 * O% Frateaz Frames Net menue 1m55 1500 Income (eas) before Income taxes was mad Net income fose) atributatie ts Nomura
Slide 20: Consolidated income
Consolidated income Pe oem a x a iri Ravens Commesons zg Mat ee ws a 167 wee Fees from investment taricng 102 W733 m4 RE 2 3 ai ‘Aaaet menagemant and porfobo servce fees mT 302 mga wT 715 BA? 3 Net gan on trading 613 4916 1158 mé 181 m4 120 Gein frass) on pevoste expatty ard debt arveetrmerts us nga
Slide 21: Main revenue items
Main revenue items NOMURA (here sfyen) ry trae Fy2eaq2a FY 202424 aes a ms i “ Commissions: ‘Stock brokerage commessions 7190.8 227 2 a2 64 ra? oe Other trakerage commissions 179 156 40 40 30 38 at Herter laa a 23 562 n4 “0 a1 157 203 ‘other “10 405 104 128 123 45 14 Total 2739 (3641 Ex) Co 7 | TOS
Slide 22: Income 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 (hmere sf yen) Fy202a2s FYa0es Fyaiza73 Fy20z424 fa = = > = Weath Maragamnent BS 1227 29 290 m9 388 a3 metstment Management aS 2 36
Slide 23: Segment Other
Segment “Other” Income (loss) before income taxes NOMURA (rmioes st yer) 734 60 4 474 a l 219 0+ ’ i 202 151 = & = 65 90" pvoneaes Fronzwes FYatzIa ae - 10 70 3a 4a 10 Net gan (loss) related to economec —— 48 20 34 a9 16 oo 23 Realized gain (loss) on investments in equity 4 Set P 210 82 oo 86118 10
Slide 24: Wealth Management related data (1)
Wealth Management related data (1) NOMURA | Fvanzyee Fv2qae2s Frmam Fama "9 wv Crrmnssacen sms oo 98 a1 tN Of tach, stock Grok erage cormression oe 2 mt ue 2 a mt an Ed Crusecn comnasiana fe detention of m2 me ST Sm LN ‘Sales creat “42 mo 2 490 M42) Fee Pom inestert bareing ad thet we mt rT 1 a1 81
Slide 25: Wealth Management related data (2)
Wealth Management related data (2) Wealth Management client assets Ormions of yee) 160 1535 1535 ether 130 (ee 1389 = Foreign investront 1722 = trusts 120 Bion ere satimert trusts eStock investment cS) trusts = Comes: boncts 40 eForergn currency, bonds stoutes 0 Fy2wa23 Fy2ua24 = FY 2024 Fraaaw2s Me
Slide 26: Wealth Management related data (3)
Wealth Management related data (3) Net inflows of cash and securities’ Paceetyes «Weath Manageme total #Fistal onty eWaath Management total # Rtstal onty 1,600 1273 . 1.200 1.220 goo | 720 755 03 352 357 = 400 - om 290 in i 3” 138 t) a. a . -= | | - = ca | aco ed 200223 FY20242 FY202M24 Fv2n24i2s Z
Slide 27: Wealth Management related data (4)
Wealth Management related data (4) Number of accounts (hovsards) Fy20g223) 0 Fy202324 «= FY20224 FYm2e25 Mar Mar aun Sep Dee Mar Jun Accounts wth balance 5,953 64% 6,395 5.396 5440 5,498 5524 Equity bokding accounts 299 2,972 2.976 2962 2.984 2,972 2978 NISA accounts opaned” 1,632 170 1,661 1.699 1.
Slide 28: Investment Management related data (1)
Investment Management related data (1) Net revenue and income (loss) before income taxes (nmees atyen) rvzozes Fvamzvas FYMONA so a RS aso Businass revenue 1207 132 25 334 333 0 38.4 2% oN bevestment garviors 1 169 60 17 56 56 bs 53.8 : Nat revenue 128.6 164.1 265 451 9 436 ant 94% 19. Non-interest
Slide 29: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business Paceetyes Fy2o2ai24 Frauzars Fragz223) FY202N24 10 20 30 “0 10 Iewestmant trusts Busnes 156 1845 og ams 40 780 C3 of which ETFs 250 a a IN 296 145 ——————— 16 195 1,088 8 36 ur 6 businesses: Total net asset nfow 7a 30 1713 593
Slide 30: Wholesale related data
Wholesale related data Net revenue and income (loss) before income taxes (nmees atyen) Fveaza3 Fvazve =f a ; a oa sa oo ww Wor Net revenue 24 086.4 1909 «ott? on-nterest expenses 7430 6122 e718 )OSCGSsCtiTCCiCSCNSN Income loss) bate income taxes me 59 2 a3. 230 «26 a4 26% 101% Breakdown of Wholesale
Slide 31: Number of employees
Number of employees sper Europe Amencas Asia and Ocemia! Tota Py2022/23 Mar 27344 Sep Dec “96 6449 Praa2425 dun 15,215 3057 240 6,622 wae 30
Slide 32: Disclaimer
NOMURA Disclaimer © Ths document ts produced by Nomura Holdings. ine. CNomura”) ® =Notung in this document shall Oe considered as an offer to sell or solicitation of an offer to buy any secunty, commodity or other instrument, including securties Issued by Nomura or any affiliate thereof Offers to se
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com