Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Day (December 2002)
22 slides from Nomura's investor day presentation, Dec 6, 2002
Slide 1: Investors' Day: Global Wholesale
INVESTORS’ DAY Global Wholesale Hiroshi Toda Director Nomura Holdings, Inc. December 2002 This is a summary of a presentation for INVESTORS’ DAY. Date: 6 December, 2002 (Friday) Place: 7th floor Nomura Securities Co., Ltd. Speaker: Hiroshi Toda Head of Global Wholesale, Director, Nomura Holdings, In
Slide 2: Outline of Presentation
Global Wholesale Outline of Presentation ! Review of Segment Operating Results ! Business Strategy 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2002 Nomura Holdings, Inc. All rights reserved. 2. Nothing in this document shall be considered as an offer to sell or solici
Slide 3: Review of Segment Operating Results
Global Wholesale Review of Segment Operating Results 3 3
Slide 4: Change in Income before Income Taxes by Business Line
Global Wholesale Review of Segment Operating Results Change in Income before Income Taxes by Business Line Fixed Income Equity Investment Banking Merchant Banking (Billions of yen) 144.5 150 126.3 120 31.4 87.8 90 60 47.0 45.5 83.8 13.3 5.8 17.7 10.1 30 32.0 26.6 41.1 11.1 11.7 12.3 0 (10.0) (11.5)
Slide 5: Change in Income before Income Taxes by Business Line
Global Wholesale Change in Income before Income Taxes by Business Line Equity Merchant Banking Fixed Income MTNs Block Trading PFG Foreign Currency Bonds (Billions of yen) 150 120 87.8 90 60 83.8 30 32.0 41.1 0 -30 FY01.3(1/2) FY02.3(1H) FY02.3(2H) FY03.3(1H) 5 This chart highlights the best perform
Slide 6: Foreign Currency Bonds for Retail Investors
Global Wholesale Foreign Currency Bonds for Retail Investors* (Billions of yen) 300 250 200 150 100 50 0 00/4-6 7-9 10-12 01/1-3 4-6 7-9 10-12 02/1-3 4-6 7-9 *Total offering amount lead managed by Nomura converted into yen 6 As this slide illustrates, the primary offering amount of foreign currency
Slide 7: Growing Presence of Japanese Market
Global Wholesale Growing Presence of Japanese Market Global Underwriting Network Strong Sales Network 7 The Japanese market, which has 1,400 trillion yen in individual financial assets, is also increasing its presence in equity business. As for China Telecom’s offering, it was successfully carried o
Slide 8: Business Strategy
Global Wholesale Business Strategy 8 8
Slide 9: Basic Strategy
Global Wholesale Basic Strategy STEP 1. Establish Dominant Position in Japan STEP 2. Ensure Dominant Presence in Global Business focusing on Japan STEP 3. Emerge onto the International Stage as a Global Player 9 This slide highlights Global Wholesale’s business strategy. Based on a turnaround scenar
Slide 10: Expansion of Industry-wide Reorganization
Global Wholesale Expansion of Industry-wide Reorganization (No. of deals) 2,500 M&A Deals Involving Japanese Companies* 2,000 1,500 1,000 Other 500 Industry-wide reorganization 0 93 94 95 96 97 98 99 00 01 02 * Figures exclude deals between financial institutions and are on a calendar year basis. Fi
Slide 11: Excess Capacity
Global Wholesale Excess Capacity GDP Gap & GDP Deflator (%) 10 GDP deflator (y-y:%) 5 0 -5 GDP Gap = (Actual GDP-Potential GDP)/Potential GDP×100 -10 81 83 85 87 89 91 93 95 97 99 01 Note: Potential GDP is calculated based on the historical average capital utilization ratio, labor hours and unemploy
Slide 12: Expansion of Industry-wide Reorganization
Global Wholesale Expansion of Industry-wide Reorganization Program for Institution for Financial Industrial Revival Revival Accelerate Solution of Determine Accelerate Excess Industrial Non- Over Leveraged Industry Capacity Revival Performing Companies Reorganization Loans Major Industry Reorganizat
Slide 13: Deterioration of Main Banks' Financial Strength
Global Wholesale Deterioration of Main Banks’ Financial Strength Outstanding Balance of NPLs*, Disposed Amount of NPLs and Latent Profit & Loss on Securities Holdings (Trillions of yen) Outstanding balance 25 Disposed amount Latent profit & loss 20 15 10 5 0 -5 95.3 96.3 97.3 98.3 99.3 00.3 01.3 02.
Slide 14: Main Banks as Comprehensive Advisors
Global Wholesale “Main Banks” as Comprehensive Advisors Management Advisory Corporate Loans Main Customers Banks Cross Shareholdings Human Resources Supply Capital Markets 14 This chart shows the role of main banks as comprehensive advisors. Traditionally, main banks have helped their corporate cust
Slide 15: Best Position
Global Wholesale Best Position Strategic Strategic Advantage Advantage Deterioration of Growing Customer Competitors’ Needs Competitive Edge 15 Given these circumstances, Nomura is aiming to become an investment bank that can fill the role of comprehensive advisor, taking over from the main banks. W
Slide 16: Comprehensive Advisor for Industrial Revival
Global Wholesale Comprehensive Advisor for Industrial Revival Strategic Advice Execution Corporate Nomura Group Winner Customers Financing Principal Finance Follow-up 16 This slide depicts Nomura’s role as a comprehensive advisor for industrial revival. As already mentioned, there is the presentimen
Slide 17: Enhance Advisory Capability
Global Wholesale Enhance Advisory Capability " Launch Industry Coverage System " Acquisition of Origination Nomura Corporate Advisors Corporate " Strategic Alliance with TWP Customers " Set up Consulting Team Execution " Set up Securitization Team " Establish Merchant Banking as a New Business Line
Slide 18: M&A Advisory Ranking
Global Wholesale M&A Advisory Ranking Announced Mergers & Acquisitions, Any Japanese Involvement 1/1/2000 – 12/31/2000 1/1/2001 – 12/31/2001 1/1/2002 – 9/30/2002 Rank Advisor Rank Advisor Rank Advisor 1 Goldman Sachs & Co 1 Goldman Sachs & Co 1 2 Merrill Lynch & Co Inc 2 Mizuho Financial Group 2 Cit
Slide 19: Symbolic Deals
Global Wholesale Symbolic Deals M&A M&A M&A Reorganization Jan. 2002 Mar. 2002 Nov. 2002 Oct. 2002 Matsushita Electric The Seiyu, Ltd. Enix Corporation / Niigata Engineering Industrial Co., Ltd. Square Co., Ltd. Co., Ltd. Strategic stock acquisition by Transfer of businesses from Stock for stock acq
Slide 20: Senior Strategic Consultant
Global Wholesale Senior Strategic Consultant Richard A. Gitlin # Partner in the Financial Restructuring Group of Bingham Dana LLP # Advisor to US State and Treasury Departments, IMF, Bank of England # Served as either President or Chairman of INSOL International, a worldwide federation of national a
Slide 21: Global Player
Global Wholesale Global Player Financial System Revival Industrial Revival 21 Our ultimate goal is to become a global player in the investment banking world. This scenario is premised, however, on the revival of the Japanese economy. For this to happen, financial revival and industrial revival are i
Slide 22: Nomura Holdings, Inc.
Global Wholesale Nomura Holdings, Inc. www.nomura www.nomura.com nomura.com 22 22