Nomura Holdings, Inc. · TSE:8604
Nomura — FY2021/22 Earnings Presentation
34 slides from Nomura's earnings presentation, May 2, 2022
Slide 1: Consolidated Results of Operations, Fourth quarter, year ended March 2022
Consolidated Results of Operations Fourth quarter, year ended March 2022 (US GAAP) Nomura Holdings, Inc. April 2022
Slide 2: Outline
Outline Presentation Executive summary (p. 2-3) Overview of results (p. 4) Business segment results (p. 5) Retail (p. 6-7) Investment Management (p. 8-9) Wholesale (p. 10-12) Non-interest expenses (p. 13) Robust financial position (p. 14) Funding and liquidity (p. 15) Financial Supplement Consolidat
Slide 3: Executive summary (1/2)
Executive summary (1/2) FY2021/22 full year highlights ï® Income before income taxes: Y226.6bn (-2% YoY); Net income1: Y143bn (-7% YoY); EPS2: Y45.23; ROE3: 5.1%ï® Three segment income before income taxes of Y205.2bn (-17% YoY) – Retail: Gained traction in shift to asset consulting with net inflows
Slide 4: Executive summary (2/2)
Executive summary (2/2) FY2021/22 4Q highlights ï® Income before income taxes: Y49.5bn; Net income1: Y31bn ï® Retail performance and Investment Management investment gain/loss both impacted by market slump on back of rising US interest rates and geopolitical risksï® Wholesale remained relatively res
Slide 5: Overview of results
Overview of results Highlights FY2021/22 FY2021/22 QoQ YoY YoY 4Q Full year Net revenue Y340.8bn -3% 100% Y1,363.9bn -3% Non-interest expenses Y291.3bn 8% -13% Y1,137.3bn -3% Income (loss) before income Y49.5bn -38%—Y226.6bn -2% taxes Net income (loss)1 Y31.0bn -49%—Y143.0bn -7% EPS2 Y9.89 -48%—Y45.
Slide 6: Business segment results
Business segment results Net revenue and income (loss) before income taxes1 FY2021/22 FY2021/22 QoQ YoY YoY 4Q Full year Net revenue Retail Y70.5bn -19% -27% Y328.0bn -11% Investment Management Y10.1bn -75% -81% Y148.0bn -9% Wholesale Y194.9bn -4%—Y703.1bn 2% Subtotal Y275.4bn -17% 84% Y1,179.0bn -4
Slide 7: Retail
Retail Net revenue and income before income taxes (billions of yen) Full year Quarter FY20/ FY20/ FY21/ FY2021/22 21 QoQ YoY 21 22 4Q 1Q 2Q 3Q 4Q Net revenue 368.8 328.0 96.8 85.0 85.2 87.4 70.5 -19% -27% Non-interest expenses 276.5 268.7 70.7 66.0 68.2 69.3 65.3 -6% -8% Income before income 92.3 59
Slide 8: Retail: Slower progress across all 4Q KPIs due to external factors
Retail: Slower progress across all 4Q KPIs due to external factors, but recurring revenue/recurring revenue assets and consulting-related revenue grew for full year 4Q recurring revenue declined on market drop, but increased 23% YoY on full year basis; Recurring revenue cost coverage ratio increased
Slide 9: Investment Management
Investment Management Net revenue and income (loss) before income taxes1 (billions of yen) Full year Quarter FY20/21 FY2021/22 FY20/21 FY21/22 QoQ YoY 4Q 1Q 2Q 3Q 4Q Business revenue2 111.9 119.9 29.9 28.0 29.3 31.5 31.1 -1% 4% Investment gain/loss3 51.2 28.1 24.2 35.5 5.1 8.6 -21.1 — Net revenue 16
Slide 10: Investment Management: Inflows drive solid growth in bank channel AuM
Investment Management: Inflows drive solid growth in bank channel AuM Flow of funds1 (billions of yen) Investment advisory and international businesses, etc. 1,500 Investment trust business 1,039 1,000 474 772 500 128 359 183 109 0 393 346 267 250 372 -373 -189 -765 -500 -1,000 FY2020/21 FY2021/22 4
Slide 11: Wholesale
Wholesale Net revenue, income (loss) before income taxes2 (billions of yen) Full year Quarter FY20/ FY20/ FY21/ FY2021/22 21 QoQ YoY 21 22 4Q 1Q 2Q 3Q 4Q Global Markets 575.5 556.4 -36.8 97.2 137.2 163.8 158.2 -3% -Investment Banking 115.8 146.6 36.1 35.5 35.4 38.9 36.7 -6% 2% Net revenue 691.4 703.
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets Net revenue (billions of yen) Equities 163.8 158.2 Fixed Income 137.2 97.2 75.8 78.1 QoQ 66.5 9.1 -3% 84.3 88.1 70.7 88.0 80.1 YoY -36.8 121.1 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Key points Fourth quarter ® Net revenue: Y158.2bn (-3% QoQ) Resilient performance driven by di
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue (billions of yen) 38.9 36.7 36.1 35.5 35.4 QoQ -6% YoY +2% FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Key points Full year ï® Net revenue: Y146.6bn (+27% YoY)—Record revenues since comparisons possible starting FY2016/17—Supported multiple transactions in Advisory b
Slide 14: Non-interest expenses
Non-interest expenses Full year Quarter (billions of yen) (billions of yen) 1,500 400 336.1 Other 1,171.2 300.4 1,137.3 291.3 300 274.7 270.9 Business development 1,000 expenses Occupancy and related 200 depreciation Information processing and communications 500 Commissions and floor 100 brokerage C
Slide 15: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Mar 2021 Dec 2021 Mar 2022 ï® Total assets Y42.5trn Y45.2trn Y43.4trnï® Shareholders’ equity Y2.7trn Y2.8trn Y2.9trnï® Gross leverage 15.8x 16.1x 14.9x Net leverage1 9.8x 9.7x 9.1xï® Level 3 assets2 Y0.6trn Y0.8trn Y0.8trn
Slide 16: Funding and liquidity
Funding and liquidity Balance sheet Balance sheet structure (As of March 2022) ï® Highly liquid, healthy balance sheet Assets Liabilities and equity Unsecured funding2 structure – 74% of assets are highly liquid ï® 77% of unsecured funding is long-term trading and related assets that are debt marked
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Mar 31, Increase Mar 31, Mar 31, Increase 2021 2022 (Decrease) 2021 2022 (Decrease) Assets Liabilities Total cash and cash deposits 4,165 4,064 -101 Short-term borrowings 1,368 1,050 -318 Total payables and deposits 4,57
Slide 19: Value at risk
Value at risk1 Definition From April 1, 2021, to March 31, 2022 (billions of yen) 95% confidence level Maximum: 23.2 1-day time horizon for outstanding portfolio Minimum: 2.7 Inter-product price fluctuations considered Average: 4.5 (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 Mar Mar Ma
Slide 20: Consolidated financial highlights
Consolidated financial highlights Full year 200 10% 153.1 143.0 Net income (loss) 5.7% 5.1% attributable to 100 5% Nomura Holdings, Inc. (“NHI”) shareholders 0 0% ROE (%) -100 -200 FY2020/21 FY2021/22 Net revenue 1,401.9 1,363.9 Income (loss) before income taxes 230.7 226.6 Net income (loss) attribu
Slide 21: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Revenue Commissions 376.9 332.3 102.4 82.9 91.6 82.6 75.2 Fees from investment banking 108.7 149.6 34.7 35.7 33.9 46.0 34.0 Asset management and portfolio service fees 230.0 270.0 60.3 64.0
Slide 22: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Stock brokerage commissions 262.3 236.4 72.8 58.2 67.7 57.3 53.1 Commissions Other brokerage commissions 14.3 18.0 3.6 3.7 4.0 4.8 5.5 Commissions for distribution of investment trusts 68.8
Slide 23: 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 taxes1 Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Retail 92.3 59.2 26.1 19.0 17.0 18.0 5.2
Slide 24: Segment “Other”
Segment “Other” Income (loss) before income taxes1 Full year Quarter (billions of yen) 80 39.6 40 15.8 14.9 1.7 0 -40 -28.5 -40.4 -66.2 -80 FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Net gain (loss) related to economic -11.5 -9.9 -13.5 3.4 -3.8 -1.1 -8.4 hedging transactions Realized gai
Slide 25: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q QoQ YoY Commissions 187.7 138.5 51.0 38.6 35.6 36.5 27.8 -23.8% -45.4% Of which, stock brokerage commission 92.6 67.4 25.9 17.8 17.6 17.6 14.4 -18.0% -44.2% Of which, commissions for di
Slide 26: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 126.6 127.0 128.7 125.0 Other 126.6 122.1 122.1 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2020/21 FY2021/22 FY2020/21 FY2021/22 Ma
Slide 27: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 1,200 1,200 888 800 800 641 471 351 315 400 400 0 0 -146 -400 -400 -613 -800 -800 FY2020/21 FY2021/22 FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q 1. Cash and securities inflows minus outflows, ex
Slide 28: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2020/21 FY2021/22 FY2020/21 FY2021/22 Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,329 5,348 5,329 5,348 5,342 5,362 5,348 Equity holding accounts 2,927 2,955 2,927 2,924 2,923 2,949 2,955 NISA accounts opened (accumulated)1 1,791 1,589
Slide 29: Investment Management related data (1)
Investment Management related data (1) Full year1 Quarter1 FY2020/21 FY2021/22 (billions of yen) FY2020/21 FY2021/22 QoQ YoY 4Q 1Q 2Q 3Q 4Q Business revenue 111.9 119.9 29.9 28.0 29.3 31.5 31.1 -1.1% 4.3% Investment gain/loss 51.2 28.1 24.2 35.5 5.1 8.6 -21.1—-Net revenue 163.2 148.0 54.0 63.5 34.3
Slide 30: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2020/21 FY2021/22 (billions of yen) FY2020/21 FY2021/22 4Q 1Q 2Q 3Q 4Q Investment trusts business 2,753 1,236 393 346 267 250 372 of which ETFs 2,241 683 268 344 -28 -15 383 Investment advisory and -883 81
Slide 31: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2020/21 FY2021/22 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 691.4 703.1 -0.8 132.8 172.7 202.7 194.9 -3.9% -Non-interest expenses 627.1 628.6 165.2 161.1 147.7 161.9 157.9 -2.5% -4.4% Income (loss) before income taxes 64.3 74.
Slide 32: Number of employees
Number of employees FY2020/21 FY2021/22 FY2020/21 FY2021/22 Mar Mar Mar Jun Sep Dec Mar Japan 15,330 15,213 15,330 15,556 15,393 15,299 15,213 Europe 2,769 2,820 2,769 2,779 2,811 2,817 2,820 Americas 2,152 2,257 2,152 2,116 2,171 2,181 2,257 Asia and Oceania1 6,151 6,295 6,151 6,196 6,216 6,259 6,2
Slide 33: 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 34: Nomura Holdings, Inc. www.nomura.com
Nomura Holdings, Inc. www.nomura.com