Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2021/22 Earnings Presentation
34 slides from Nomura's earnings presentation, Feb 4, 2022
Slide 1: Consolidated Results of Operations, Third quarter, year ending March 2022
(US GAAP) February 2022 Consolidated Results of Operations Third quarter, year ending March 2022 Nomura Holdings, Inc.
Slide 2: Outline
Outline Presentation Financial Supplement 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) Consolidat
Slide 3: Executive summary (1/2)
FY2021/22 1Q-3Q FY2020/21 1Q-3Q YoY Net revenue Y1,023.1bn Y1,231.8bn -17% Income (loss) before income taxes Y177.1bn Y396.8bn -55% Net income (loss)1 Y112.0bn Y308.5bn -64% EPS2 Y35.33 Y98.30 -64% ROE3 5.4% 15.1% FY2021/22 1Q-3Q highlights Executive summary (1/2) Net income (loss) attributable to N
Slide 4: Executive summary (2/2)
FY2021/22 3Q highlights Executive summary (2/2) Net income (loss) attributable to Nomura Holdings shareholders. 2. Booked provision of approx. Y39bn related to legacy transactions in the Americas from before the global financial crisis (2007 – 2008). Calculated using annualized net income attributab
Slide 5: Overview of results
Highlights Overview of results Net income (loss) attributable to Nomura Holdings shareholders. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. FY2021/22 3Q QoQ YoY F
Slide 6: Business segment results
Net revenue Retail Y87.4bn 3% -11% Y257.5bn -5% Investment Management Y40.1bn 17% 2% Y137.9bn 26% Wholesale Y202.7bn 17% -9% Y508.2bn -27% Subtotal Y330.2bn 13% -8% Y903.6bn -16% Other* Y21.6bn -13% -44% Y115.0bn -24% Unrealized gain (loss) on investments in equity securities held for operating purp
Slide 7: Retail
Retail Cash and securities inflows minus outflows, excluding regional financial institutions. 2. Retail channels, Net & Call, Intermediation, Company employees, Hotto Direct 3. Retail channels only. 4. Retail channels, Net & Call, Hotto Direct and Japan Wealth Management Group (included from FY2020/
Slide 8: Retail: Continued focus on total asset portfolios
Retail: Continued focus on total asset portfolios Retail channels and Japan Wealth Management Group. Number of clients who transacted at least once since April 1 (accumulated). Recurring revenue asset growth and increase in recurring revenue Consulting-related revenue Number of active clients2 (tril
Slide 9: Investment Management
Investment Management Net revenue and income before income taxes1 Key points (billions of yen) (trillions of yen) Assets under management (net)4 FY2020/21 FY2021/22 QoQ YoY 3Q 4Q 1Q 2Q 3Q Business revenue2 28.8 29.9 28.0 29.3 31.5 8% 9% Investment gain/loss3 10.6 24.2 35.5 5.1 8.6 70% -19% Net reven
Slide 10: Investment Management: Momentum in delivering services via regional financial institutions
Investment Management: Momentum in delivering services via regional financial institutions Flow of funds1 Flow of funds in investment trust business1 (billions of yen) (billions of yen) Based on assets under management (net). 2. Established in January 2016 with investments from Nomura Asset Manageme
Slide 11: Wholesale
Net revenue: Y202.7bn (+17% QoQ; -9% YoY) Income before income taxes: Y40.8bn (+64% QoQ; -47% YoY) All business lines reported higher revenues QoQ Global Markets environment improved in second half of quarter Fixed Income saw strong performance in Credit primarily in AEJ and higher revenues in FX/EM
Slide 12: Wholesale: Global Markets
Net revenue: Y163.8bn (+19% QoQ; -13% YoY) Fixed Income booked stronger revenues QoQ as Credit and FX/EM performance offset a slower quarter in Rates due to market uncertainty; Equities revenues grew QoQ driven by continued strong performance in Americas Fixed Income Net revenue: Y88.0bn (+24% QoQ;
Slide 13: Wholesale: Investment Banking
FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Net revenue: Y38.9bn (+10% QoQ; +9% YoY) Strongest quarterly revenues since comparisons possible in FY2016/17 driven by strong performance in Americas and AEJ M&A revenues exceeded Y10bn for fifth straight quarter with Americas reporting record revenues1 on multipl
Slide 14: Non-interest expenses
Non-interest expenses Key points Full year Quarter (billions of yen) (billions of yen) Non-interest expenses: Y270.9bn (-10% QoQ) Compensation and benefits (+8% QoQ) Bonus provisions increased in line with pay for performance Other expenses (-49% QoQ) QoQ decline due to factors including provision1
Slide 15: Robust financial position
Robust financial position Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. December 2021 is preliminary. 3. CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital di
Slide 16: Funding and liquidity
Long-term debt, 76% Average maturity 5.1 years3 Funding and liquidity Unsecured funding2 76% of unsecured funding is long-term debt Diversified sources of funding Trading assets and related: Reverse repo, securities, derivatives, etc. Trading liabilities and related: Repo, securities loaned, derivat
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Consolidated balance sheet (billions of yen) 17 1. Including securities pledged as collateral. Consolidated balance sheet (billions of yen) Mar 31, Dec 31, Increase 2021 2021 (Decrease) Assets Total cash and cash deposits 4,165 3,914 -250 Total loans and receivables 4,142 4,572 430 Total collaterali
Slide 19: Value at risk
Value at risk Definition 99% confidence level 1-day time horizon for outstanding portfolio Inter-product price fluctuations considered From April 1, 2021, to December 31, 2021 (billions of yen) Maximum: 89.7 Minimum: 4.8 Average: 9.1 (billions of yen) 18 (billions of yen) FY2019/20 FY2020/21 FY2020/
Slide 20: Consolidated financial highlights
Full year (billions of yen) 300 217.0 Net income (loss) 8.2% attributable to Nomura 153.1 5.7% Holdings, Inc. (“NHI”) 150 5% shareholders 0 0% ROE (%) -150 -300 FY2019/20 FY2020/21 Net revenue 1,287.8 1,401.9 Income (loss) before income taxes 248.3 230.7 Net income (loss) attributable to Nomura 217.
Slide 21: Consolidated income
Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q Revenue Commissions 308.8 376.9 96.7 102.4 82.9 91.6 82.6 Fees from investment banking 103.2 108.7 36.1 34.7 35.7 33.9 46.0 Asset management and portfolio service fees 238.2 230.0 58.6 60.3 64.0 67.2 69.9 Net
Slide 22: Main revenue items
Full year Quarter (billions of yen) FY2019/20 FY2020/21 FY2020/21 FY2021/22 3Q 4Q 1Q 2Q 3Q Stock brokerage commissions 196.5 262.3 65.5 72.8 58.2 67.7 57.3 Other brokerage commissions 14.4 14.3 3.4 3.6 3.7 4.0 4.8 Commissions Commissions for distribution of investment trusts 66.7 68.8 18.1 17.4 14.4
Slide 23: Income (loss) 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 FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q Retail 49.4 92.3 28.3 26.1 19.0 17.0 18.
Slide 24: Segment “Other”
Segment “Other” Income (loss) before income taxes1 Full year Quarter (billions of yen) 150 100 94.4 50 39.6 2.0 1.7 0 -28.5 -50 -40.4 -66.2 -100 FY2020/21 FY2021/22 FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic 17.5 -11.5 1.4 -13.5 3.4 -3.8 -1.1 hedging transactions Realized
Slide 25: Segment “Other”
Segment “Other” Income (loss) before income taxes1 Full year Quarter (billions of yen) 150 100 94.4 50 39.6 2.0 1.7 0 -28.5 -50 -40.4 -66.2 -100 FY2020/21 FY2021/22 FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic 17.5 -11.5 1.4 -13.5 3.4 -3.8 -1.1 hedging transactions Realized
Slide 26: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2019/20 FY2020/21 QoQ YoY 3Q 4Q 1Q 2Q 3Q Commissions 153.2 187.7 49.3 51.0 38.6 35.6 36.5 2.5% -25.9% Of which, stock brokerage commission 61.2 92.6 24.8 25.9 17.8 17.6 17.6 0.2% -28.9% Of which, commissions for distri
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 1,200 888 800 800 471 400 400 315 0 0 -146 -195 -400 -400 -429 -613 -800 -800 FY2020/21 FY2021/22 FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q 1. Cash and securities inflows minus outflows,
Slide 28: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2019/20 FY2020/21 FY2020/21 FY2021/22 Mar Mar Dec Mar Jun Sep Dec Accounts with balance 5,319 5,329 5,333 5,329 5,348 5,342 5,362 Equity holding accounts 2,920 2,927 2,939 2,927 2,924 2,923 2,949 NISA accounts opened (accumulated)1 1,737 1,791
Slide 29: Investment Management related data (1)
Investment Management related data (1) Full year1 Quarter1 FY2020/21 FY2021/22 (billions of yen) FY2019/20 FY2020/21 QoQ YoY 3Q 4Q 1Q 2Q 3Q Business revenue 121.5 111.9 28.8 29.9 28.0 29.3 31.5 7.6% 9.5% Investment gain/loss -13.6 51.2 10.6 24.2 35.5 5.1 8.6 70.2% -18.8% Net revenue 107.9 163.1 39.4
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) FY2019/20 FY2020/21 3Q 4Q 1Q 2Q 3Q Investment trusts business 1,788 2,753 588 393 346 267 250 of which ETFs 2,133 2,241 203 268 344 -28 -15 Investment advisory and 302 -
Slide 31: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2020/21 FY2021/22 FY2019/20 FY2020/21 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 648.6 691.4 223.1 -0.8 132.8 172.7 202.7 17.4% -9.2% Non-interest expenses 556.4 627.1 146.3 165.2 161.1 147.7 161.9 9.6% 10.7% Income (loss) before income taxes 92.2
Slide 32: Number of employees
Number of employees FY2019/20 FY2020/21 FY2020/21 FY2021/22 Mar Mar Dec Mar Jun Sep Dec Japan 15,748 15,330 15,701 15,330 15,556 15,393 15,299 Europe 2,691 2,769 2,751 2,769 2,779 2,811 2,817 Americas 2,120 2,152 2,158 2,152 2,116 2,171 2,181 Asia and Oceania1 6,070 6,151 6,146 6,151 6,196 6,216 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.
Nomura Holdings, Inc. www.nomura.com