Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Day (December 2002)
108 slides from Nomura's investor day presentation, Dec 16, 2002
Slide 1: Nomura Investors' Day
NOMURA INVESTORS’ DAY Junichi Ujiie President & CEO Nomura Holdings, Inc. December 2002
Slide 2: Outline of Presentation
| NOAURA Outline of Presentation Review of Operating Results Business Environment Group Strategy Corporate Governance This documents prosucea by Nomura Moldings. ne (Nema. Copyigh 2007 Nomura Hoings, Ina Alighis reserved erie sekcaten fn tty comme or ether nirumet, cing ureur to appropros string mat
Slide 3: Review of Operating Results
Review of Operating Results
Slide 4: Review of Operating Results (US GAAP)
| NOAURA Review of Operating Results (US GAAP) (sitions otyen) C oon ®=- Income before income taxes (LHS) 18 186.1 Net income (LHS) 180 16 3 B-ROE (RHS) 160 “ 140 n 120 10 100 a 80 wo 6 0 4 2 2 ° ° Fyo0.3 (1/2) Fy04.3 (4/2) Fy02.3 (172) Fy03.3 1H * Indudes cumulative effet of a 9 cumutatvo o ange x2
Slide 5: Business Environment
Business Environment
Slide 6: Business Environment
Business Environment Progress of Structural Reform = Movement of Individual Financial Assets = Acceleration of Corporate Restructuring
Slide 7: Movement of Individual Financial Assets (1)
| NORURA Business Environment Movement of Individual Financial Assets (1) Financial Products Selection Criteria 9 s "Because the yield is favorable” (LHS) 5 "Because capital gains are expected in the future” oo « o 7 # 8 © Hw 2 Ow ee Not: The tree postle ener inne savy tetany “eet nd quay” The gph s
Slide 8: Movement of Individual Financial Assets (2)
Business Environment Movement of Individual Financial Assets (2) Investment in Foreign Assets by Individuals Critlions of yen) sd ENonth US$ Deposit Interest” (RES) 145.85 yen 14 2 | | | | ere urrency do} 3 Li 8 9 c on 7 Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept.
Slide 9: Movement of Individual Financial Assets (3)
Business Environment Movement of Individual Financial Assets (3) {2itens of yor) TOPIX & Individuals’ Net Purchase on Equi mit Individual net purchases (LHS) TOPIX (RHS) 2,000 iP i Ny 1.000 a5 86 87 88 89 9 91 92 93 94 95 96 97 98 99 00 Of 02 ‘Souwoe Compe by Nomura Reseach ett Sok enange ata 12
Slide 10: Acceleration of Corporate Restructuring (1)
| NOAURA Business Environment Acceleration of Corporate Restructuring (1) (of mar Shareholder Mix 65% Corporate Investors 60% 55% 50% 45% 40% _ Financial investors | 30% FY63 FY97.3 © FY983 «= FY993 © FYOO3 «= FYO1.3 «= FYO23 43
Slide 11: Acceleration of Corporate Restructuring (2)
| NOMURA Business Environment Acceleration of Corporate Restructuring (2) M&A Deals nn ee entering New Markets Se seengtnening Existing Business croup Restructuring 2,000 4,000 500 95 96 7 98 99 00 ot "Note: Caloulated on a calendar year basis excluding nancial institutions, Figures for 2002 have be
Slide 12: Acceleration of Corporate Restructuring (3)
| NOAURA Business Environment Acceleration of Corporate Restructuring (3) Bank Loan Interest Rate Spreads DI* Lichen Based on Corporate Credit Ratings cy) 80 AAA. BBB 58-8 60 ccc - 40 20 20 -40 Apr00 Jul00 Oct.00 Jan.O1 AprOt Jul01 OctO1 Jano2 Apro2 Julo2 Octo2 atresia cata tan andl ne epee ee sels
Slide 13: Group Strategy
Group Strategy
Slide 14: Group Strategy — Group Vision
Group Strategy — Group Vision MPM Tobe a Globally Competitive Japanese Financial Servi Nomura’s Relative Performance ) 250 200 "Nomura Holdings | 150 10 TOPIK 7 98 99 00 o1 02 7
Slide 15: Group Strategy — Business Execution Structure
Group Strategy — Business Execution Structure President & CEO: Junichi Ujiie MW Wemura Holdings | Hol (SWategie Management Committee ae «Establish Group St Board saa | |. capital Allocation Monitoring: Nomura Value Added & Other Measurements) ‘4 Domestic Retail J Global Wholesale ] = Moneceall ] Dir
Slide 16: Group Strategy — Strengths of Nomura Group
mms NOMURA Group Strategy — Strengths of Nomura Group» =. Close Cooperation Amon: Overseas a Investing Needs Individual Investors Corporates & Public Sector Institutional Investors Domestic Retail ‘quity Finance Debt Finance Improvement of Capital efficiency M&A Advisory Asset Restructurit aa Securi
Slide 17: Group Strategy — Priorities
| NOAURA Group Strategy — Priorities = Expand business in anticipation of further growth in the securities market = Serve customers by focusing on th sale = Materialize profit from rapidly expanding business opportunities = Recognize and take risks _ iil jement = Enhance asset management capability
Slide 18: Corporate Governance
Corporate Governance
Slide 19: Corporate Governance
| NOAURA Corporate Governance Enhanced with Shift to Holding Company Structure ctors We have appointed 2 of 11 directors from outside Company lee* One outside director is included among the six committee members mpensation Committee Two of the three committee members are outside directors, "al *The
Slide 20: Nomura Holdings, Inc.
NOMURA Nomura Holdings, Inc. WwWww.nomura.com
Slide 21: Investors' Day: Domestic Retail
NOMURA INVESTORS’ DAY Domestic Retail Takashi Yanagiya Director Nomura Holdings, Inc. December 2002
Slide 22: Outline of Presentation
Domestic Retail | NOMURA | Outline of Presentation « Review of Segment Operating Results « Business Strategy « Product Strategy re gaiames nto socinatn ona ahgae, 2 repreantavons or waranty snauany or hay cant actopedey Womans ts eter or oF 5 any san sates man Soci Kncarlooingsstomertsncide, whois i
Slide 23: Review of Segment Operating Results
Review of Segment Operating Results
Slide 24: Review of Segment Operating Results
‘Domestic Retail | NOMURA | Review of Segment Operating Results 11 Net income Bitionsof yen) 140 133.2 420 1146 100 80 11 Income before income taxes 123.8 FY01.3 (1/2) FY02.3 (1/2) FY03.3 (1H) 7
Slide 25: Revenue Breakdown
Domestic Retail | NOMURA | Revenue Breakdown (approx. figs.) Bonds Equities investment trusts (distribution fees) HInvestment trusts (administration fees) 11 Variable annuity insurance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 30% FY00.3 FY01.3 FY02.3 FY03.3 1H 28
Slide 26: Target Markets
Domestic Retail | NOMURA | Target Markets = Multiplier effect resulting from pursuing business in both the individual client and corporate and public sector markets Domestic Retail Division orporate & dividual Market Public Sector + Wealthy Investors « Affluent Investors « Asset Builders. Companies
Slide 27: Client Assets
Domestic Retail NOMURA | Client Assets (excluding financial institutions) (Trllions of yen) 28.1 tril. yen _ at end of Sept. Nikkei Stock Average, Other a Investment [1 Trusts 20 Domestic Bonds Foreign Currency 10 Equities 30
Slide 28: Net Asset Accumulation
Domestic Retail | NOMURA | Net Asset Accumulation (monthly average) {Billions of yen) 800 727.1 600 457.9 400 Monthly Average 132.5 ——_ 200 1817 466.4 115.0 a 088 ; Hi FY01.31H FY01.32H FY02.31H FY0232H FY03.31Q FY03.32Q Not asset accumulation: Gap between inflow and outflow of assets at
Slide 29: Nomura Home Trade Accounts
NOMURA Domestic Retai Nomura Home Trade Accounts IT Share 38.7%* (Mitions of accounts) 1.08 million accounts** “IT share is based on the number of orders forthe six months ended September 30, 2002 32 id of September 2002
Slide 30: Business Strategy
Business Strategy
Slide 31: Increasing Customers' Trust
cere (Ee | Increasing Customers’ Trust Expanding busin: in anticipation of further growth in the securities market Expand customer base & realize sustainable profit Progress of business model in an' further growth in the securities market Increasing Customers’ Trust in Nomura
Slide 32: Core Value Formation
Core Value Formation Core Value Defined as what customers regard as most important and are willing to pay for Serve customers by focusing on their core values 35
Slide 33: Core Value Formation (Individual Market)
Domestic Retail | NOMURA Core Value Formation (Individual Market) Wealthy Investors Estimated financial as: Affluent Investors Asset Builders No. of Investors
Slide 34: Core Value Formation (Individual Market)
‘Domestic Retail | NOAAURA | Core Value Formation (Individual Market) Wealth wos al Investors Provide higher .+ GO} ig value-added servi ices .” euscannsee” Increase client asset Affluent per customer Investors 37
Slide 35: Core Value Formation (Individual Market)
Domestic Retail | NOMURA | Core Value Formation (Indi Wealthy Investors Affluent Investors Financial Advisor a teen Melee
Slide 36: Core Value Formation (Individual Market)
Domestic Retail Core Value Formation (Indi dual Market) manage your assets Expanding assets from a wid of affluent investors — Deep penetration into regional society — senior citizens 39
Slide 37: Core Value Formation (Individual Market)
Domestic Retail | NOMURA | Core Value Formation (Individual Market) Wealthy Investors Affluent Investors
Slide 38: Per Customer Cost
Domestic Retail | NOMURA Per Customer Cost (Customer Services & Investment Advisory Section) (%) 200 150 100 Client Assets No. of Customers Per Customer Cost 1 1 1 L 98.9 99.3 99.9 00.3 00.9 01.3 01.9 02.3 Note: The figure for the end of September 1998 was calculated as 100 Effective April 1, 2002,
Slide 39: Corporate Employees Investment Plan Business
Domestic Retail Corporate Employees Investment Plan Business Corporations with ESOP Administration for ESOP ESOP Members Corporate =— Intranet Note: ESOP = Employee stock ownership plan Nomura Securities Rationalization of ESOP administration Investment information supply via intranet Open accounts
Slide 40: Branch Office Strategy
Domestic Retail | NOMURA Branch Office Strategy 43
Slide 41: Core Value Formation (Corporate Market)
Domestic Retail NOMURA Core Value Formation (Corporate Market)
Slide 42: Core Value Formation (Corporate Market)
Domestic Retail NOMURA Core Value Formation (Corporate Market) Medium Sized | Enterprises Create Business by Providing Appropriate Solutions Listed Companies 45
Slide 43: Client Assets (Local Governments & Other Corporations)
Domestic Retail Client Assets (Local Governments & Other Corporations) (Triltions of yen) Lifting of government 3 guarantees on term deposits 2 0 FY99.3 FY00.3- FY01.3 FY02.3 FY03.3 4H 2H Ma 4H 2H 1H_—2H 1H
Slide 44: Core Value Formation (Corporate Market)
Domestic Retail | NOMURA | Core Value Formation (Corporate Market) Regional Financial Medium Instituti . institutions Sized . Create Business by Providing Enterprises Appropriate Solutions Local Government Entities & Other Corporations Consultation on Management ropatation between of Public Money Fu
Slide 45: IB W-ing
Domestic Retail , NOMURA | IB W-ing Sharing information such as contact history and thoughts on capital strategy
Slide 46: Core Value Formation (Corporate Market)
Domestic Retail | NOMURA | Core Value Formation (Corporate Market) Regional Financial Institutions Create Business by Providing Appropriate Solutions Enhance Advisory Capability for Medium Sized Enterprises and their Owners Listed Companies Local Government Entities 692 trillion yen & Other Corporat
Slide 47: Product Strategy
Product Strategy
Slide 48: Product Strategy
Domestic Retail | NOMURA Product Strategy 51
Slide 49: Number of Accounts Holding Stock
Domestic Retail Number of Accounts Holding Stock (Millions of accounts) 1.2 14 1.0 52
Slide 50: Client Assets in ETFs
Domestic Retail | NOMURA | Client Assets in ETFs (including financial institutions) Ml Nikkei 225 ETF {Bitions of yon) 49.1 billion yen aq | NIRKBTStOSK Ba TOPIX ETF Average 32.9 billion yen 30 Total: 82.0 billion yen 9,383 20 10 0 01.12 021 2 3.4 5 6 7 8 9 53
Slide 51: Product Strategy
Product Strategy
Slide 52: Client Assets in Foreign Currency Products
Domestic Retail Client Assets in Foreign Currency Products (excluding financial institutions) (Trllions of {Tritions of yen) +12 38 Im Foreign Stocks 0.1 trillion yen Foreign Investment Trusts 1.0 t yen Il Foreign Currency Bonds 28 trillion yen 55
Slide 53: Currency Diversification Ratio
Domestic Retail | NOMURA Currency Diversification Ratio Foreign Assets as a Percentage of Investment Trusts’ Net Asset Value Japan UK Foreign 7.1% Domestic 92.9%
Slide 54: Engine for Global Expansion
NOMURA Domestic Retail Engine for Global Expansion Abunda japanese Fi = Growing interest of individual investors in foreign currency products = Increasing appeal of Japan as a market in which foreign issuers can raise funds Provider of Global Risk Capi S7
Slide 55: Product Strategy
Domestic Retail | NOMURA | Product Strategy 58
Slide 56: Client Assets in Bonds & Bond-type Investment Trusts
‘Domestic Retail | NOMURA | Client Assets in Bonds & Bond-type Investment Trusts (excluding financial institutions) (Trillions of yen) 53 5 Long-Term Bond 42 Investment Trust 4 4 Bl Domestic Bonds Il Foreign Bonds 2 fm Bond-type Investment Trusts 4 +900 billion yen 02.3 4 5 6 7 8 9 59
Slide 57: Product Strategy
Domestic Retail ) NOMURA | Product Strategy 60
Slide 58: Outstanding Variable Annuity Insurance Contracts
Domestic Retail | NOMURA | Outstanding Variable Annuity Insurance Contracts {Billions of yen) 12057 105.3 billion yen 100 80 60 40 20 0 01.10 11 12 021 2 3 4 5 6 7 8 9 61
Slide 59: Variable Annuity Insurance
Domestic Retail | NOMURA | Variable Annuity Insurance Menor Annuity Insurance Providing Core Value in the Form of Comprehensive Investment Advisory Services Establishment of Insurance Product Department Insurance Product @ Development of Planning Sales Know-how e Development of a Marketing Methodolo
Slide 60: Compliance
a <- - s NOAURA | Retail NOMURA Compliance Suitability Rule Know-Your-Customer Rule he in Integrity Increase Investors’ Trust in Nomura Enhance the Nomura Brand 63
Slide 61: B&D Project
Domestic Retail =m On AU RA | B&D Project (Publicity) (1) Exercise Leadership Enhance Social Acceptance (2) Expand Maat Particig@ii . Consistency in . . Concept & Deed '3) Enhance Satisfaction of + Collective Tradition & Pride Corporate & Individual + Communication Customers (Business Applicability)
Slide 62: B&D Project
B&D Project Lectures on Securities Markets Given at More than 110 Universities Lectures Continually Upgraded
Slide 63: Nomura Holdings, Inc.
Domestic Retail | NOMURA Nomura Holdings, Inc. ‘www.nomura.com 66
Slide 64: Investors' Day: Asset Management
NOMURA INVESTORS’ DAY Asset Management Kazutoshi Inano Director Nomura Holdings, Inc. December 2002
Slide 65: Outline of Presentation
— | NOMURA Outline of Presentation = Review of Segment Operating Results ® Analysis of Current Situation = Defined Contribution Pension Plan Business ‘= tevostment Trust Business = lvestment Advisory Business = Goals & Strategy ‘= Enhance Assot Management Capabity ‘= Expand Distribution Channel vi B
Slide 66: Review of Segment Operating Results
Review of Segment Operating Results
Slide 67: Review of Segment Operating Results
‘Asset Management Review of Segment Operating Results (euttons ot yer) 35 1 Net revenue 30 fi Income before income taxes 25 20 15 10 5 0 FY01.3 (1/2) FY02.3 (1/2) FY03.3 (1H) 70
Slide 68: Analysis of Current Situation
Analysis of Current Situation
Slide 69: Defined Contribution Pension Plan Business
‘Asset Management Analysis of Current Situation Defined Contribution Pension Plan Business Pension Administration Share Product Supply Share Ne lo Product Supply Nomura Product Other Supply sa% Note: Excluding Nomura Group, Daiwa Group and Nikko Cordial Group Product supply share includes only those
Slide 70: Assets under Management
=<" | NOMURA Analysis of Current Situation Assets under Management (NAM) Public Investment Trusts. Investment Advisory Contracts Tos Tot a= Bend investment trusts (exleu ES stck nvectnent trusts Overseas ne + Domest (Fetes ot on) (ens ot on) 200 60 ‘80 160 50 aon 140 0 = 120 40 100 30 ry 80 60 20 40
Slide 71: Public Investment Trusts Ranking
yo | NOMURA | 7 NOMURA Analysis of Current Situation Public Investment Trusts Ranking Gillions of yen) Company rad 2 Daiwa Aset Management 7a 124% Niko evel Management aaa 3% 7 KOKUSA ASSET NANAGEVENT SET UF Paar set Management Tor 18% € Shino ineetnont Tat aragemenl 1ea-280% 7 Daiichi Kano AetManag
Slide 72: Assets under Management — Investment Trusts
ay = | NOMURA Analysis of Current Situation Assets under Management — Investment Trusts NAM's Assets under Management by Product Type (As of end of Sept. 2002) (Millions of yen) Publis Investment Tuste 71,541,385 Stock inyesmtant Trusts 3.256 849 [ET Towa 7.166 566] Bond investment Tuste 3.265 404 L
Slide 73: Long Term Bond Investment Trust
ayo | NOMURA | Analysis of Current Situation Long Term Bond Investment Trust Profit Distribution (Actual / Targeted)* Aowai_[ Target Long Term Bond Investment Trust M0 Aw | Noa | 12095 | 125 (No.1 — No. 12) May] No.5 | 13095 | 125 stn] nvo.6 | 13005 | 125 (otis yen Ju] No.7 | sarge | 125, 7 Aug] nos
Slide 74: Major Daily Accounting Funds
ay <n | NOMURA Analysis of Current Situation Major Daily Accounting Funds Gilions of yen} 7,000 MMF @ MRFO FFF 6,000 5,000 4,000 FFF: 656 billion yen 3,000 MRF: 1,112 billion yen 2,000 MMF: 1,480 billion yen 1,000 Mar. Jun. Sept. Dec. Mar. Jun. Sept. 2001 2002 -
Slide 75: Foreign Currency Bond Funds
‘Asset Management Analysis of Current Situation Foreign Currency Bond Funds (Billions of yen) 500 450 400 350 300 250 Nomura Bond & Loan Fund D Asset Backed Securities Open DUS. Preferred Securities Open High Yield Bond Open Nomura Bond Income Open. Other Note: Totals for funds with multiple courses
Slide 76: Major Stock Investment Trusts
NOMURA ‘Asset Management Analysis of Current Situation Major Stock Investment Trusts Assets under Management Leeadaiaie Nomura Japan Open 1,200 + ELNOMURA JAPAN Stock Strategic Fund 1,000 800 600 79
Slide 77: Exchange Traded Funds
‘Asset Management Analysis of Current Situation Exchange Traded Funds NAM's ETFs tn nt ero oe Be Toracae Teo, | orm rey rorm | rwmizas fermen] ies | nceinn| FE | wen iscsi] toa | Mae Samo ae z aa mE pea |e —[ is ra a oT tee [se [ae Fa oa TT ange {on | ar | a Je 3 a tr suaee| es [ge [ses i a an ctone
Slide 78: Investment Advisory Ranking
ayo | NOMURA | inapenent NOMURA Analysis of Current Situation Investment Advisory Ranking Gillions of yen) Company Pensions Pensions Total 1 DLIBJ Asset Management 3,655 oO 3,655 2 Nomura Asset Management 2.908414 3.828 3 Nissay Asset Management 2,982 0 2,982 4 Daiwa SB Investments 1,805 329 2,134 5
Slide 79: Assets under Investment Advisory Contracts
NOMURA ‘Asset Management Analysis of Current Situation Assets under Investment Advisory Contracts (Willons of yen, as of end of Sept. 2002) Dissrotionary Contracts] Nen-Diseraionary Contacts Total one g Market Value | oN Market Value | Noe. Markot Value Pubic Pensions 16 1,486,105 0 0 161486 105 Pri
Slide 80: Goals & Strategy
Goals & Strategy
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