Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2020/21 Earnings Presentation
39 slides from Nomura's earnings presentation, Feb 10, 2021
Slide 1: Form 6-K Nomura Holdings, Inc.
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 For the month of February 2021 NOMURA HOLDINGS, INC. (Translation of reg
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 2021
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, 2021 By: /s/ Go Sugiyama Go Sugiyama Senior
Slide 4: Consolidated Results of Operations Third quarter, year ending March 2021
Table of Contents Connecting Markets East & West Consolidated Results of Operations Third quarter, year ending March 2021 (US GAAP) Nomura Holdings, Inc. February 2021 © Nomura
Slide 5: Outline
Table of Contents Outline (P17) (P24) Segment Financial Presentation “Other” Supplement Executive (P25) Retail Consolidated summary related(P2-5) data balance (P26-29) Overview sheet (P19) Asset of results Value Management at (P6) riskBusiness (P20) related Consolidated segment data (P30-31) results
Slide 6: Executive summary
Table of Contents Executive income cost non-face-to-face regions Y273.0bn Asset -Y4.8bn—Income net Nomura income Management reductions, taxes reported Research 45% summary attributable YoY; income stronger sales accounting Institute (loss) Three Y52.9bn (1)activities to taxes before revenues segment
Slide 7: Consolidated results: income by segment and region
Table of Contents (Reference) Nihonbashi total: 1Q-3Q Revenue (billions International Regional growth of yen) and andratio 349.3 segment cost22% minimization +132% breakdown redevelopment) YoY of 230.2 (billions income Wholesale 71.1 ofbefore yen) 273.0 Three income +27% 229.6 segment taxes YoY(Sale
Slide 8: Growing presence in core businesses
Table of Contents (Reference) 5.8% (2020)6 size Nomura based Bloomberg, disclosures Share upon 5.4% Rank- 43% ing (BofA, the Growing deal (US$bn) Financial 3.0% following 41% count Citi, presence 38% 2016 share 1GS, advisor JP peers Morgan 2019 JPM, 5.37% in Source: (BofA, Deal Wholesale 2016 MS). 3
Slide 9: Executive summary: segment highlights
Table of Contents Executive All QoQ; favorable to Investment annualized and segment Wholesale results business net+82% income income Wholesale market summary(2) Average: net Banking YoY) segments income (loss)1 (loss) conditions All116.4 delivered Fifth business reported attributable before Firm-wid
Slide 10: Overview of results
Table of Contents Overview 57% shareholders 88% 396.8 of results per 45% share.Net Highlights 3. Calculated income1(billions 98.4 using 45% ofannualized yen, 72%except 308.5 net23% EPS income and EPS2ROE) attributable Y31.16FY2020/21 45%to Nomura 77% Y98.30 FY2020/21 Holdings 30% shareholders ROE3 Q
Slide 11: Business segment results
Table of Contents Business 223.1 Retail in credit equity 1% spread 28.3 2.6 segment 20% 24% 35%—6.9— relating 692.1 61% results 38% to 66.2 Derivatives securities Subtotal 113% Net revenue (loss) 358.6 (Y2.5bn) held before and for 5%income operating 19% 7Income 1,062.3 (loss) purposes Asset before 2
Slide 12: Retail
Table of Contents Retail17.6 taxes supported client Discretionary QoQ) Bonds: institutions. assets remained Y397.4bn; Net by 18.4 2. Y121.0trn revenue diversified investments, Retail 15.1 high +23% 22.8 and despite channels Y115.2trn client income QoQ 28.3 Insurance declining, 24% only. Stronger app
Slide 13: Retail: recurring revenue and clients
Table of Contents Retail:200 22.0 Dec/3Q Recurring coverage 465 20.0 Continued Sep/2Q area revenue Jun19.7 are Sepdelivering efforts Recurring Y22.0bn Dec 10.0Mar in 10.0 approaches Y21.2bn results revenue Retail 5.0 with channels assets 0.0 Consulting-related by the 0.0 coverage and number FY2019/2
Slide 14: Asset Management
Table of Contents Asset 10.3 Investment +47% taxes inflows booked in UCITS5 measures after Trusts Japan 2.2 deducting both Management YoY) Association, in into 13.2 from bond prepared ESG-related attrust ETFs record 6.1x—Net public Income fund duplications business boosted on Japan. (Global high pen
Slide 15: Asset Management: assets under management and flows
Table of Contents Asset588 563 ETFs) (net). share2 bond stock fund, and Management: Other 296 29.0% bond high investment 2. investment yield, Source: Inflows 0and trusts 28.5% global strategies The lifting Investment 2,000 and -163 28.2% international globally Japan (excl. -77 28.1% Trusts equity ET
Slide 16: Wholesale
Table of Contents Wholesale Net 66% 31.4 management accounting under revenue Banking Rates revenues revenue 40.7 71% from Basel and revenues increased and AEJ Revenue/modified period) last III 186.5 income Net accounting Credit 50.0 divided quarter revenue strongest 145.9 is driven 22.4 and before a
Slide 17: Wholesale: Global Markets revenues
Table of Contents Wholesale: 98.1 revenue: were had Securitized from revenues while a able previous strong Equities 78.0 Y187.5bn intoProducts Global both monetize quarter FY2019/20 quarter booked Cash Markets (-2% and reported as client Equites stronger Credit Rates QoQ; FY2020/21 flows Net signifi
Slide 18: Wholesale: Investment Banking
Table of Contents Wholesale: +35% remained International—Stronger Nomura global (US) acquisition (India) (Y350.0bn) M&A-related –(US/SPAC) Dec 31, YoY)—Best M&A3 (Germany) Greentech Global strong 2020). of Investment and (Y1trn) financing Shimachu Romeo #1 PO driven 3.Scatec quarterly closed in Sour
Slide 19: Non-interest expenses
Table of Contents Non-interest related FY2019/20 43.4 1,039.6 trading other 43.2 transaction volumes 265.3 42.6 FY2020/21 expenses 262.2 43.5 depreciation at related in2.1% 278.9 Americas QoQ Full expenses communications 285.4 year 19Equities 20 270.8 declined 3Q Quarter 200 -5.1% 4Q – Occupancy Occ
Slide 20: Robust financial position
Table of Contents Robust 9.9x RWA LCR6 0.0 800 Nomura assets. 9.9x 15,675 201.1% 5.financial Holdings Tier1 Level 0.0% 14,822 600 248.4% capital position 3shareholders’ FY2019/20 19% assets2 14,838 divided 231.5% 16% Balance Tier (net) 17% by FY2020/21 equity. 1RWA exposure Y0.7trn capital 20% sheet
Slide 21: Funding and liquidity
Table of Contents Funding and additional Long-term 32% term/long- Liquidity considering by Loans currency) and Management’s unsecured debt borrowings lending the liquidity probability by–Other long-term funding market Other Balance assets view. ofLong-term assets term over redemption Cash are sheet
Slide 22: Financial Supplement
Table of Contents Financial Supplement
Slide 23: Consolidated balance sheet
Table of Contents Consolidated 15,907 1,487 Equity1,335 16,952 Total -152 balance NHI 1,045 Total shareholders’ Total sheet payables trading Consolidated and equity assets deposits 2,653 andbalance private 4,397 2,794sheet 4,361 140 equity Noncontrolling -36 (billions and Total debt collateralized o
Slide 24: Value at risk
Table of Contents Value21.5 13.9 22.1 at(billions risk 15.8 Definition Diversification of yen) FY2018/19 From benefit April FY2019/20 -1.3 1, 2020, -11.0FY2019/20 to -2.3 December -11.0 -10.1 FY2020/21 31,-8.5 2020-6.5 (billions Mar VaR Mar 4.5 of 25.3 yen) Dec 6.3 Mar 99% 25.3 Junconfidence 12.0 Se
Slide 25: Consolidated financial highlights
Table of Contents Consolidated yen) 248.3 (yen) 131.3 annualized Net 57.1 300 Diluted-Net income -34.5 year-to-date financial 142.5 (loss) income 21.0% highlights 67.6 net attributable 25% income. (loss) 98.4 200 2,701.2 attributable Full to21Nomura 20% year 2,653.5 15.6% to (billions -100.4 NHI 2,7
Slide 26: Consolidated results
Table of Contents Consolidated 26.8 and 718.3 (loss) dividends 26.8 attributable 664.710.8 162.5 income 777.0 27.0to 132.3 36.1 NHI 794.5 Full Asset 53.3 shareholders 203.1 year 50.3 management Quarter 176.1 53.8-100.4 106.5 Net(billions revenue and 82.5 217.0 portfolio 89.6 of 57.1 1,116.8 yen) Gai
Slide 27: Main revenue items
Table of Contents Main26.8 192.0 96.7 26.8 Equity revenue 196.5 10.8 underwriting 48.1 items 27.0 63.3 36.1 Commissions 62.9 Asset and 61.0 distribution management 65.5Fees Otherfrom 30.0 brokerage fees14.0 investment 168.7 4.1commissions 159.5 2.0banking 1.5 40.7 10.5 38.6 Asset 14.4 10.4 35.2 14.4
Slide 28: Consolidated results by segment and region
Table of Contents Consolidated FY2019/20 Other -37.7 Europe 131.3 This information 248.3 -2.8 -56.9 1. Geographic 99.2 69.7 -14.1 results: 2.2 -24.7 is 2.3 -27.9 not 3Q Income information 181.8 -19.5 used 4Q 57.41Q for 15.0 83.6 (loss) -18.0 business 2Q-8.4 131.3 isbefore 3Q 1.2 based -2.1 Retail Se
Slide 29: Segment Other
Table of Contents Segment “Other” Equity FY2019/20 purposes Income 3Q 4Q in(loss) earnings 1Q 2Q before 3Q ofNet affiliates income gain (loss) taxes 32.5 35.0 related Full4.8 year to13.9 economic Quarter 6.6 5.3(billions 1.8 10.417.5 Corporate of 2.3yen) -4.6items 5.6 160-5.0 -36.0 120 1.4-22.2 hedg
Slide 30: Retail related data (1)
Table of Contents Retail88.8 brokerage investment 90.0 790.9 insurance 157.5 833.0 144.8 related 81.1 policies commission banking 616.7 161.8 data 92.83,260.7 799.8 185.7 (1) 98.2 and60.2 Full other 5.8% 782.0 14.8% 3,453.7 61.2 year 34.0 9.0% -2.2% -30.3% 17.0 Quarter 3,415.4 23.2 Non-interest -1.1
Slide 31: Retail related data (2)
Table of Contents Retail investment 70.2 1.0 1.0 72.8 related 1.177.2 1.0data Foreign Other2 (2)trusts 7.1 currency Retail 7.0 60 7.2 client bonds 7.0assets 7.0 6.3 Domestic 6.9 5.87.1 (trillions 6.3Total bonds 5.8 5.6 114.7 of yen) 5.5104.0 5.5 Domestic 40 122.3140 104.0 bonds1 Foreign 112.2 12.5 O
Slide 32: Retail related data (3)
Table of Contents Retail1,200 related data (3)600Net424 inflows 256of cash 344 and 0 securities1 -195 -600 Full year -560 (billions of yen) FY2019/20 2,400 2,015 FY2020/21 1,800 1,2003Q 600 4Q0 1Q -600 2Q-429 3Q FY2018/19 1. Cash and FY2019/20 securities inflows Quarterminus outflows, (billions excl
Slide 33: Retail related data (4)
Table of Contents Retail 2,952 2,935 FY2018/19 Including related Junior FY2019/20 2,939 dataNISA. NISA (4) FY2019/20 2. Number accounts Ratio of ofopened cash accounts FY2020/21 stocks (accumulated)1 (thousands) traded via online 1,702 FY2018/19 3Q 4Q 1,737 service. 1Q 2Q 1,728 FY2019/20 3Q 291,737
Slide 34: Asset Management related data (1)
Table of Contents Asset11.4 -7.3% 19.2 Research This revenue Wealth table Management ACI-related Square. includes and 22.3 presents Asset 95.9% fair 3.gain/loss arelated Management Net reconciliation value 139.6% after data adjustments -5.0 deducting Assets (1) -7.6 3.0 ofFull 2.5 -0.6 net under dup
Slide 35: Asset Management related data (2)
Table of Contents Asset Management 588 Nomura ETF of Asset whichMarket Management ETFs related 2,531 37.4 data 37.6 2,133 market share (2) 43.3 115 (%) share2 37.6 Asset 1,130 26%45.1 inflows/outflows 26% 1,153 FY2018/19 47.9 26% 618 54.8 26% 203 FY2019/20 Nomura 27% Investment by business1 26% Asse
Slide 36: Wholesale related data
Table of Contents Wholesale 666.8 FY2020/21 192.3 financial 556.4 187.5 data, related 143.3 -2.5% FY2018/19 which data 135.8 17.1% are 160.8 non-GAAP Full FY2019/20 Investment year 154.8 Quarter measures 146.3 Banking -5.5% prepared 102.3 QoQ 2.1% (billions YoY 85.7 Income on26.4 a3Q management of11
Slide 37: Number of employees
Table of Contents Number 2,164 2,157 of employees 2,158 Asia and FY2018/19 Oceania1FY2019/20 6,746 6,070FY2019/20 6,554 6,070 FY2020/21 6,118 6,140 6,146 Mar Mar TotalDec 27,864 Mar26,629 Jun Sep27,299 Dec Japan 26,629 15,852 27,079 15,748 26,869 15,971 26,756 15,748 1. Includes 16,069 15,807 Powai
Slide 38: Disclaimer
Table of Contents Disclaimer Nomura distributed representations regarding without Securities instead statements. other from valuations, of circumstances those reports represent the orthis Litigation according in any competitive You prior filed This specific document or affiliate should written only
Slide 39: Nomura Holdings, Inc. www.nomura.com
Table of Contents Nomura Holdings, Inc. www.nomura.com