Nomura Holdings, Inc. · TSE:8604
Nomura — FY2022/23 Earnings Presentation
34 slides from Nomura's earnings presentation, April 2023
Slide 1: CFO overview of Q4 and full year results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the fourth quarter and full year ended March 2023 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Presentation and Financial Supplement contents
Presentation Financial Supplement Executive summary (p. 2-3) © Overview of results (p. 4) © Business segment results (p. 5) © Retail (p. 6-8) © Investment Management (p. 9-10) © Wholesale (p. 11-13) © Non-interest expenses (p. 14) Robust financial position (p. 15) © Consolidated balance sheet (p. 17
Slide 3: Full year results
First, our full year results. As you can see on the bottom left, net revenue declined 2 percent year on year to 1,335.6 billion yen. Income before income taxes dropped 34 percent to 149.5 billion yen. A breakdown of income before income taxes is shown on the bottom right. Segment Other, shown in the
Slide 4: Fourth quarter results
The percentages I refer to from now on are all quarter-on-quarter comparisons. Group net revenue was 324.9 billion yen, down 17 percent, while income before income taxes declined 73 percent to 22.7 billion yen. Net income was down 89 percent at 7.4 billion yen. Earnings per share was 2.34 yen and RO
Slide 5: 4
4
Slide 6: Net revenue and income (loss) before income taxes
Net revenue and income (loss) before income taxes (billons of yen) FY2022/23 Net revenue | Reta 14 128 10 | 753 e 76 «262-570 «| «378 -36% «= 3x | 1480 | 1286 $ -13% | V 1990 2055 1891 | 1788 f -5% 8% | 7031 | 7724 $ 10% 642 | 239 156 873 | 379 § -57% 41% | 1792 | 1647 § 8% 12 | 28 «18 27 1 «49 - -
Slide 7: Retail results
Net revenue in Retail slipped 7 percent to 75.3 billion yen, while income before income taxes slowed 26 percent to 9.8 billion yen. As shown on the bottom left, recurring revenue remained roughly unchanged at 33.7 billion yen. Efforts to control costs help lift our recurring revenue cost coverage ra
Slide 8: Retail total sales
As you can see in the bar graph on the left, total sales for the fourth quarter were 4.4 trillion yen. Primary transactions such as an offering by Japan Post Bank made a strong contribution to sales of stocks which increased 12 percent to 2.7 trillion yen. Bond sales declined by 35 percent, but this
Slide 9: Retail KPIs
The top left shows net inflows of recurring revenue assets of 65.4 billion yen, driven by investment trusts, insurance, and loans. Flow business clients shown on bottom left represents clients who traded with us at least once since April. As of the end of March that number was 1.45 million which is
Slide 10: Investment Management results
Net revenue was 37.8 billion yen, down 34 percent and income before income taxes was down 51 percent to 16.4 billion yen. Business revenue declined 8 percent due mainly to last quarter seeing stronger demand than normal for aircraft leasing transactions as airlines recovered from the pandemic. Our a
Slide 11: Assets under management and flows
As shown on the upper left, assets under management recovered from last quarter to 67.3 trillion yen at the end of March. As shown on the bottom left, the investment trust business saw outflows of about 360 billion yen as outflows from MRFs where clients park idle cash, were around the same level, i
Slide 12: Wholesale results
Net revenue declined 5 percent to 178.8 billion yen. Fixed Income revenues grew slightly, but revenues from Equities and Investment Banking declined. Wholesale expenses increased slightly from last quarter due to business related expenses such as commissions and floor brokerage as well as decommissi
Slide 13: Global Markets
First, Global Markets. Net revenue declined 3 percent to 149.3 billion yen. Fixed Income revenues were up 1 percent at 87.5 billion yen. Rates started the quarter strong in Japan but slowed due to the spike in volatility in March. FX/EM reported stronger revenues in AEJ, offsetting a slowdown in EME
Slide 14: Investment Banking
Net revenue declined 15 percent to 29.6 billion yen. Advisory fee pools dropped due to market uncertainty and deals were postponed, leading to lower revenues in the Americas and EMEA. Japan revenues increased on contributions from high-profile deals such as a tender offer for the privatization of To
Slide 15: Non-interest expenses
Groupwide non-interest expenses declined 3 percent to 302.2 billion yen. Compensation and benefits remained in line with last quarter as a decline in severance-related expenses and yen appreciation offset an increase from year-end bonus adjustments. Commissions and floor brokerage declined 6 percent
Slide 16: Financial position and capital ratio
The table on the bottom left shows Tier 1 capital of 3.2 trillion yen, down about 43 billion yen from the end of December. Risk-weighted assets declined by 550 billion yen from the end of December to 17.4 trillion yen. As a result, our CET1 capital ratio at the end of March was 16.2 percent. The wat
Slide 17: Financial Supplement
Financial Supplement 16
Slide 18: Consolidated balance sheet
Consolidated balance sheet (billions of yen) Total collateralized agreements Total trading assets and private ‘equity and debt investments’ Total other assets’ Total assets 1. Including securities pledged as colatera. es Short-term borrowings Total payables and deposits Total collateralized financin
Slide 19: Value at risk
Definit — 95% confidence level — 1-day time horizon for outstanding portfolio — Inter-product price fluctuations considered From April 1, 2022, to March 31, 2023 (billions of yen) ~ Maximum: — Minimum: — Average: 68 27 48 (billions of yen) “Framavaa rvaqqes Fvamavag = Fz DS Ee ee ee ee ee ee Equity
Slide 20: Consolidated financial highlights
1 6% Full year Quarter (billions of yen) 200 8% = 200 == Net income (loss) attributable to 150 | 1430 6% ‘Nomura Holdings, Inc. CNHI") shareholders 100, baad 4% 3. ROE (%) 50 2% 0 0% 0 rm eg ew 4000 QQ Net revenue 1,363.9 1,335.6 340.8 299.0 318.0 393.7 324.9 Income (loss) before income taxes 226.6
Slide 21: Consolidated income
Full year Quarter (ions of yen reriaa amar IA am Revenue Commissions 332.3 279.9 75.2 704 68.2 75 63.8 Fees from investment banking 149.6 113.2 34.0 273 24.2 33.8 28.0 Asset management and portfolio service fees 270.0 217 68.9 68.3 69.0 67.0 67.4 Net gain on trading 368.8 563.3 118.9 141.9 160.9 142
Slide 22: Main revenue items
Full year Quarter 236.4 190.8 53.1 48.4 48.5 526 41.3 18.0 17.9 55 48 47 43 4.0 43.7 30.3 65 75 64 83 8.0 343 41.0 10.1 97 86 122 10.4 332.3 279.9 75.2 704 68.2 75 63.8 Equity underwriting and distributi 33.4 18.9 34 37 16 8.1 54 Bond underwriting and distribution 298 21 63 67 45 45 54 M&A / Financi
Slide 23: Income before income taxes by segment and region
Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) ‘Pravee Prana Fyaozv22 Fv202223 59.2 335 52 49 55 13.3 98 Investment 15 43.5 88 117 5.6 33.3 16.4 Wholesale 745 24 37.0 25.3 202 19 14.2 Three gt total 205.2 106.4 33.5 18.5
Slide 24: Segment Other
Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 595 30 158 149 157 24 0 39 30 reaver Pree 40 QQ Net gain (loss) related to economic 7 P . = 9 9.9 AB 84 9.8 01 15 63 Realized gain (loss) on investments in equity ities held for 14 284 44 02 O41 21.9 6.2 Equity in earni
Slide 25: Retail related data
Full year Quarter (billions of yen) Commissions 138.5 112.5 78 26.0 262 312 294 61% 46% Of which, stock brokerage c o74 90.9 14.4 11.8 122 134 134 0.3% 6.9% Of which, commissions for of trusts 435 30.2 65 75 64 83 80 3.6% = 23.6% Sales credit 4.0 44.2 94 10.4 10.9 122 10.6 13.2% 16.4% Fees from inve
Slide 26: Retail client assets
Retail clientassets (tions of yen) 140 Other . wo) ws 122 = Foreign investment a 100 = Bond investment trusts 80 = Stock investment trusts 60 = Domestic bonds 40 = Foreign currency bonds 20 = Equities 0 1224 119.4 1177 1175 122. iliti | “Frama Fv Mar Mar un Sep ee ce! E — 78.0 75 757 74.0 744 Foreig
Slide 27: Net inflows of cash and securities
Net inflows of cash and securities" (billions of yen) Full year Quarter =Corpordes s individuals “Corporates #Indviduals 1,200 1,200 900 900 600 600 300 300 D =. 300 -300 600 600 re gg Corporates? 136 282 722 125 267 -137 2a Individuals? 488 438 82 376 -369 259 173 Total 351 720 641 500 -102 122 200
Slide 28: Number of accounts
Number of accounts thousands) — Fyzowe2 — Fy2oee3 © Fy20ev220FVRO2DS © Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,348 5,353 5,348 5,354 5,359 5,352 5,353 Equity holding accounts 2,955 2,963 2,955 2,958 2,957 2,950 2,963 NISA accounts opened (accumulated)' 1,589 1,632 1,589 1,598 1,609 1,625
Slide 29: Investment Management related data
Full year Quarter Fy202228 << a ee ec reieeus. 1199 120.7 314 307 29.9 314 28.7 84% 1% e gain/loss 28.1 79 24-24 37 256 91 64.5% P Net revenue 148.0 128.6 10.1 76 26.2 57.0 78 33.6% 3.8x Non-interest expenses 765 85.1 18.9 193 206 237 215 92% 14.0% Income (loss) before income taxes 15 43.5 88-7 56 3
Slide 30: Asset inflows/outflows by business
Asset inflows/outflows by business*:? Full year Quarter Investment trusts business 1,236 156 372 478 437 -100 358 of which ETFs 683 250 383 323 4 “M7 ma pivestrashit edansy an 830 916 -180 928 89 57 434 Total net asset inflow 2,066 760 193 450 226 44 492 Domestic public investment trust market and N
Slide 31: Wholesale related data
Full year Quarter (billions of yen) ee mg rae 400 QQ Net revenue 703.1 194.9 199.0 205.5 189.1 178.8 Non-interest expenses 628.6 743.0 157.9 173.7 185.3 190.9 193.1 1.1% 22.3% Income (loss) before income taxes 74.5 23.4 37.0 25.3 20.2 19 14.2 - - Breakdown of Wholesale revenues Full year Quarter (bi
Slide 32: Number of employees
Japan 15,213 15,131 15,213 15,503 15,384 15,282 15,131 Europe 2,820 2,937 2,820 2,811 2,869 2,908 2,937 Americas 2,257 2,387 2,257 2,252 2,358 2,392 2,387 Asia and Oceania’ 6,295 6,320 6,295 6,407 6,520 6,634 6,320 Total 26,585 26,775 26,585 26,973 27,131 27.216 26,775 1. Includes Powai office in In
Slide 33: 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, sales, solici
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com