Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2010/11 Earnings Presentation
40 slides from Nomura's earnings presentation, Feb 10, 2011
Slide 1: Nomura Holdings, Inc. Form 6-K
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 Supplement for the month of February 2011 NOMURA HOLDINGS, INC. (Transla
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), Third quarter, year ending March 2011
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: February 10, 2011 By: /s/ Shinji Iwai Shinji Iwai Senior
Slide 4: Consolidated Results of Operations (US GAAP), Third Quarter
Table of Contents Consolidated Third Nomuraquarter, Holdings, Results year Inc. ending ofFebruary Operations March2011 2011 (US GAAP)
Slide 5: Important notice
Table of Contents securities or accepted be nature, 2•liquidity This The Nothing No sales read part information consolidated document are in may of by of issued in the inherently secondary this Nomura this be context made. document by is contains document and financial produced Nomura for uncertain
Slide 6: Presentation Outline
Table of Contents Executive Presentation Outline Financial Value Consolidated Main Adjustment Retail Asset Wholesale 3Number revenue Management at related risk ofsupplement summary related employees of (p. balance financial income data items consolidated 22)data (p. related (p. (p. sheet 27-31) (p.
Slide 7: Executive summary
Table of Contents Executive Q3 Highlights Income Business Retail: Asset Investment Wholesale: Global offerings Tier 4(1) Net net revenue 10.0 Management: (billions 300.0 27.8 21.6 20.0 6.5 100.0 10.0 150.0 15.0 50.0 1Q FY2010/11 2Q 5.0 ratio Net revenue Markets before segment revenue, 25.0 200.0 295
Slide 8: Overview of Third quarter results
Table of Contents Overview Third FY2010/11 Y268.1bn Non-interest Income Y27.8bn Net ROE 5(1) Net revenue income1 2quarter 2.6% income before +29% of +6% QoQ Y295.9bn results 1.1% Y13.4bn Year-to-date attributable +4% +55% YoYY775.5bn Y55.8bn FY2010/11 13× +7%+31% to+8% Nomura -3% -27% Y16.8bn Y831.3
Slide 9: Breakdown of net revenue
Table of Contents Breakdown Third FY2010/11 Retail Other1 Unrealized Net 6(1) Q3 revenue Japan Non- quarter netY97.5bn Y3.1bn 43% “Other” gain QoQ of Y295.9bn Year-to-date revenue net Japan-69%—Y46.0bn +11% (loss) byYoY revenue includes 57% -7% FY2010/11 on +7% region investments Y296.2bn fair +8%va
Slide 10: Retail: Income before income taxes
Table of Contents (billions (trillions 68.4 71.0 72.3 73.5 FY2009/10 Q3 Key Net Income Fund Retail Client Sales 7–Other Retail Client Net Nomura IPOs Foreign Q4 revenue revenue: performance points 68.1 inflows of asset sales client franchise Q1 and before client main accounts of ofbond Global US DB
Slide 11: Retail: Robust client asset inflow
Table of Contents Retail: Well 3,000 0F Total Robust Stocks Fund Investment Demand Equity Assets Bonds (billions 2,122 2,500 FY2009/10 Q3 Net Core Making 8Aim Y2009/10 Q4 increase asset to balanced products sales inflows 2,000 1,879 expanded Consulting related Bonds Q1 continue sales steady of for i
Slide 12: Asset Management
Table of Contents Asset (billions Non-interest (trillions 23.1 24.1 FY2009/10 22.2 Q3 Key Net Income Assets Increase Fund Launched 9*10 Q4 revenue revenue: funds performance points 23.4 inflows Management under Q1 before in of of 23.3 Funds-i linked Q2 assets yen) yen) FY2010/11 and 17.2 expenses Y2
Slide 13: Asset Management: Investment trust business
Table of Contents Asset Investment Share 21.7 #2, 27.5% 6.9% Net (billions 600 555 400 FY2009/10 Q3 (1) (2) 10 Q4 14.5% inflow 438 400 Others, #4, Management: ofQ1 Expansion Increasing Robust Products: Clients: Following Award Best Domestic Strategic Balanced Nomura Excellent High Asset 200 of Japan
Slide 14: Wholesale
Table of Contents Wholesale (billions Q3 Non-interest 48.5 Key Net Income Fixed Investment Build-out Equities (1) (2) Market US (%) Q4 2410-year 11 Apr-10 revenue revenue: points 35.2 Income Q1 (loss) before Germany (trillions 17.4 15.4 3.8 0.9 Share 3.2 2.7 FY2009/10 3Q #5,000 1,000 Global M&A 3,00
Slide 15: Wholesale: Global Markets
Table of Contents Wholesale: (billions Q3 Non-interest 33.1 163 FY2009/10 Key Net Income Fixed Robust Rates Americas Equities Cash Client Revenues 12 Q4 revenue revenue: 155 performance points 30.0 equities business Income revenues franchise revenue Q1 performance before 145 of-26.3 posted grew driv
Slide 16: Global Markets: Fixed Income and Equities
Table of Contents Global Increasing Progress Structured Large ABB) Improved US Client Fixed Equities Expanded (1) 13 InFY2010/11 Large Income primary Equities, driving on-boarding revenues FY2009/10 AEJ EMEA Japan Markets: revenues by position offering Excludes overseas credit IPOs region Americas b
Slide 17: Wholesale: Investment Banking
Table of Contents Wholesale: Net (billions FY2009/10 Investment Other 15.4 League 2010 Global (1) 14 Key Gross Loss revenue Postedperformance 5.2 2009 1.8 ECM M&A Commanding Japan 44.8% Large M&A EMEA tables2 Derivatives In Worked AEJ Acted Bookrunner Platform Americas DCM, ECM, -14.8 of points befo
Slide 18: Investment Banking business focus and awards
Table of Contents Investment Business Focus Carlsberg CIC ($349m) Lead *Won Q1 ($1.2bn) Equity-Linked Asia-Pacific Best China Agricultural POWL Yuzhou (High Central DCM Chongqing Financial ICBC SAIC ECM Joint Q2 M&A ($500m) 15 Q3 /Equity-Linked Bookrunner Global Financial PennWest Motor /Yield sever
Slide 19: Recent momentum
Table of Contents Recent Large Retail Continuing Strengthening Asset Product Nomura Operating In Wholesale Although driven Involved ECM DCM Australia Credit M&A 16 investment Fixed Resona Management Japan public Malayan Agricole by momentum offering Japan Income, in and the Japan fund to many Financ
Slide 20: Segment Other
Table of Contents Segment Income Full (billions 40 017.8 -9.1 -240 FY2010.3 Q3 Net hedging Realized securities Equity *-211.3 17040 loss Q4 Note:gain -14.7 year 15.6 -240 2:1-65.9 current Note in Q1 (loss) before transactions of transactions been (loss) gain “Other” Quarter earnings held included 3:
Slide 21: Non-interest expenses
Table of Contents Full (billions Non-interest [Graphic 1,092.9 852.2 300 1,000 256.6 Other Business 800 0200 FY2010.3 FY2006.3 89.6 166.5 Q3 Compensation Information Commissions Occupancy 180 non-interest Compensation year 110.0 268.1 253.4 157.2 1,045.6 of Appears development Quarter FY2011.3 FY200
Slide 22: Robust financial position
Table of Contents Robust Capital Financial Total Shareholders’ Liquidity RWA Tier Gross 16.0 18.0 10.0 12.0 14.0 6.0 8.0 3Q Level (billions 2,000 44% 55% 01,000 500 FY2010.3 (2) 190%Tier 4Q 110.0 16.2 46% assets: 11,737 Net 50% 3leverage ratio 1Q financial ratio assets 1ofY5.6trn Indicators common 4
Slide 23: Financial Supplement
Table of Contents Financial Supplement
Slide 24: Consolidated balance sheet
Table of Contents Consolidated Cash Assets Trading 14,700 Other 1. (billions Mar. Short-term Liabilities Equity Noncontrolling Total 21 Including 31, and assets Nomura liabilities assets 15,053 assets of Dec. cash borrow yen) 32,230 securities 1,639 balance 31, shareholders’ and deposits 353 30,097
Slide 25: Value at risk
Table of Contents Value Definition 99% 1-day Inter-product Mar. Equity 9.4 22 7.5 confidence 31, time at6.0 risk Mar. From 4.7 horizon price 31, 4.2level April Mar. 3.8 fluctuations for(2.33 2.6 1outstanding 31, to2.0 Mar. December standard 2.2considered 31, 2.1portfolio Mar. dev.) Interest 31, 31,
Slide 26: Consolidated financial highlights
Table of Contents Consolidated Netincome Full 400 200 175.8 3.7% (billions Quarter -800 -708.2 -600 -400 -200 25 20 3.6% 15 10 510.2 02.3 230% 5% 18.4 13.4 2% Income Net 304.3 Total ROE Note:15.5% 67.8 year FY2006.3 1159.02 0.3% -67.8 3.7% 1.1% FY2010.3 3Q 274.5 18.0 10.2 2,109.8 3.6% 2.914Q 8.3% 28
Slide 27: Consolidated income statement data
Table of Contents Consolidated FY2010.3 3Q Commissions Revenue trading equity expense operations 99.4——————before 256.6 47.7——————(“NHI”) Note: 24 4QCertain 175.8 securities 1Q 304.2 647.2 FY2011.3 452.0 2Q-67.8 income 290.0 reclassifications 356.3 3Q 958.0 67.7 318.5 -708.2 61.7 337.5 806.5 (billio
Slide 28: Main revenue items
Table of Contents Main39.8 FY2010.3 Stock 36.1 Equity Other Banking Asset Total 25 102.7 revenue Asset 0.1 brokerage underwriting Other 0.7 FY2011.3 146.0 management 1.8 items 23.8 commissions 3.1 189.7 and FY2006.3 38.6 0.5140.2 distribution 0.1 fees 32.4 0.1 68.5 (retail) (other) 132.2 27.5 FY2007
Slide 29: Adjustment to segment results
Table of Contents Adjustment (billions 3Q Retail 40.8 Segments 59.3 -59.9 452.0 Total 1. Note: segment 2. 3. 4. 26 presentation. The Gain Certain In 4QOther -38.2 January 551.4 -21.5—————-private 318.5 197.2 defined 1Q (loss) information. oftotal reclassifications -50.2 2Q -33.1 yen) 318.5 of -64.9
Slide 30: Retail related data (1)
Table of Contents Retail (billions FY2006.3 3Q Commissions administration expenses Domestic 1,602.7 Accumulated Other foreign 1. 27 Nomura 4Qrelated 1Q currency 1,542.6 of 249.3 distribution FY2007.3 2Q Securities. yen) value data 269.4 3Q fees 279.3 1,729.1 FY2010.3 bond (1) and of 251.4 FY2008.3 2
Slide 31: Retail related data (2)
Table of Contents Retail Full 180 (billions 70 FY2010.3 FY2006.3 3Q Stock Commissions 1. 28 Nomura 60 4Q 150 year 50 brokerage related 1Q 120 of 40 Quarter FY2011.3 FY2007.3 2Q Securities yen) 30 90 data for 3Q 20 60 commissions distribution 10 (2) 30FY2008.3 00 of and 153.6 FY2009.3 investment comm
Slide 32: Retail related data (3)
Table of Contents Retail Full Other (trillions 80.5 85.2 100 80 60 68.1 40 Mar. Equities Overseas 1. 3. 29 Euroyen Includes 72.2 59.3 20year 72.3 31, 0client related 73.5 49.3 2006 of Quarter mutual bonds annuity yen) assets 68.4 48.5 data Mar. funds have (3) 37.2 insurance. 31, been Bond 2.3 2007 2
Slide 33: Retail related data (4)
Table of Contents Retail Full (billions 8,000 6,000 5,975 5,000 4,868 3,000 1,879 1,000 1,289 0-2,000 FY2010.3 3Q 1. 30 213 -1,000 Retail 4Q year 6,000 5,279 4,000 2,122 2,000 related client 1Qof client Quarter FY2011.3 2Q yen) 4,581 458 assets: data 3Q assets (billions 4,928 (4) Net FY2006.3 exclud
Slide 34: Retail related data (5)
Table of Contents Retail Number Mar. Accounts (thousands) Full FY2010.3 3Q New 1. 31 IT4Q year 31, individual share related 1Q of 2006 Quarter with FY2011.3 2Q is accounts the data Mar. 3Q balance accounts percentage (5) 31, /FY2006.3 IT3,780 2007 share1 (thousands of Mar. 3,953 trades FY2007.3 31,
Slide 35: Asset Management related data (1)
Table of Contents Asset FY2010.3 FY2006.3 Net The Total presentation. Full (trillions 25 24.1 25.8 27.0 30 35 23.1 20.2 15 0M Note: America, 32 2010. ar. 23.4 10revenue defined year 22.2 20 31, assets Total In Management 5 23.3 January 2006 of Quarter Private FY2011.3 FY2007.3 assets yen) under cont
Slide 36: Asset Management related data (2)
Table of Contents Asset Full (trillions 25.9 25 22.0 Overseas Privately 515 33 0M 24.3 year 24.6 21.2 Domestic Market Mar. Management Investment 7.1 Nomura FY 3Q Exclude Public 0.5 1. ar. Based 4Q FY 7.1 0.7 31,23.1 of Quarter placed investment investment stock bond 1Q FY 6.0 0.2 45.0 13.5 yen) Asse
Slide 37: Wholesale related data (1)
Table of Contents Wholesale 155.8 Global FY2010.3 Fixed 417.4 (billions FY2009.3 3Q Investment Net -5.1—- Non-interest 34 4Q revenue 161.4 486.4 Income 1Q Markets ofFY2010.3 FY2011.3 2Q related yen) Banking Banking(Gross) 3.6% 130.8 -6.4 expenses -217.2 3Q-157.3 FY2009.3 FY2010.3 131.1 -0.1% data 10
Slide 38: Wholesale related data (2)
Table of Contents Wholesale Private (billions 600 439.1 500 400 347.1 300 Asia 231.2 250.9 Europe 0M 100 98.7 Japan Terra Note: Nomura 35ar.254.9 543.4 366.3 31, Firma Amount 356.1 235.5 59.9 equity (excluding Phase4 of 2006 370.0 related 195.5 yen) 381.4 340.4 337.7 243.6 related Mar. ofVentures 16
Slide 39: Number of employees
Table of Contents Number Mar. Japan Europe Americas Asia-Pacific3 Total 1. Note: 36 Excludes 31, 14,932 Headcount (excluding (FA)2 1,515 of 2006 1,073 employees employees 1,948 16,854 1,791 778 Mar. 1,322 FA)1 figures 900 2,174 31, 1,956 18,026 1,063 1,070 9,618 of 2007 have 2,377 private 4,294 25,6
Slide 40: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com