Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2023/24 Earnings Presentation
34 slides from Nomura's earnings presentation, February 2024
Slide 1: CFO overview of third quarter results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. First, I would like to extend my heartfelt condolences to those affected by the Noto Peninsula earthquake and pray for a swift recovery from this disaster. I will now give you an overview of our financial results for the third quarter of
Slide 2: Presentation Financial Supplement
Presentation Financial Supplement © Executive summary (p. 2-3) © Consolidated balance sheet (p. 17) © Overview of results (p. 4) © Value at risk (p. 18) © Business segment results (p. 5) © Consolidated financial highlights (p. 19) © Retail (p. 6-8) © Consolidated income (p. 20) © Investment Manageme
Slide 3: Group net revenue increased 9 percent quarter on quarter
Group net revenue increased 9 percent quarter on quarter to 400.2 billion yen, while income before income taxes grew 39 percent to 78.7 billion yen. Net income was up 43 percent at 50.5 billion yen and as you can see on the top right, performance bottomed out in the fourth quarter last year and has
Slide 4: Nine-month net revenue and income results
Net revenue for the period was 1,116.9 billion yen, up 11 percent compared to the same period last year. Income before income taxes increased 43 percent to 181.8 billion yen, while net income grew 28 percent to 109.1 billion yen. EPS was 34.69 yen and ROE was 4.5 percent. As shown on the right-hand
Slide 5: Highlights
Highlights (billions of yen, excluding EPS and ROE) FY2022/23 | F223. FY23/24 3a 4a sa} oa wy | 1a3a } 103} wr | Net revenue 3037 3249 || 3489 © 3678 | 4002 || 9% 2% || 10106 } 1.1169 11% Non-interest expenses 3101 3022 || 3026 = 311.0 | «3215 |] 3% 4% || e839 |} 9364 6% Rei (EERO IED 83.6 227 463 5
Slide 6: Net revenue and income (loss) before income taxes
Net revenue and income (loss) before income taxes (billions of yen) ‘Net revenue Unrealized gain (loss) on investments in equity securities held for operating -20.7 4.9 43 27 13.0 - Net revenue 1 3937 324.9 | 348.9 367.8 | 400.2 11% | (loss) taxes Unrealized gain (loss) on investments in equity secu
Slide 7: Retail results and recurring revenue
Retail net revenue increased 4 percent to 102.6 billion yen and income before income taxes was 31.9 billion yen, marking the highest level in eight years since the July to September quarter in 2015. The reallocation of our Partners last Spring has delivered steady results and we are starting to see
Slide 8: Retail sales and insurance record high
Total sales were down 9 percent at 4.7 trillion yen but remained strong. Sales of stocks were 3.1 trillion yen, substantially higher than the level seen before the first quarter, with this quarter being a notably strong one for primary subscriptions. Insurance sales were at a record high. As we cont
Slide 9: Retail net inflows and client KPIs
Net inflows of recurring revenue assets shown on the top left was 51.4 billion yen. This was lower than last quarter as the market rally prompted large sales and exits as the value of products had risen. However, excluding Corporate section, net inflows remained high at 151.5 billion yen. The top ri
Slide 10: Investment Management results
Net revenue decreased 14 percent to 38.9 billion yen and income before income taxes declined 33 percent to 15.6 billion yen. As you can see on the bottom left, stable business revenue was 33.3 billion yen, in line with last quarter which was a record high since the division was established in April
Slide 11: Assets under management and net inflows
As shown on the top left, assets under management totaled 78.5 trillion yen at the end of December, representing a record high for the third straight quarter. This is above our March 2025 KPI target of 75.8 trillion yen. On the bottom left, net inflows were 330 billion yen, with the investment trust
Slide 12: Wholesale results
Net revenue increased 6 percent to 217 billion yen. Income before income taxes was 23 billion yen, up 178 percent. Performance is improving after having bottomed out in the fourth quarter of last fiscal year. Although bonus provisions increased in line with performance, Wholesale non-interest expens
Slide 13: Global Markets revenue by business line
Global Markets net revenue was roughly flat at 171.6 billion yen. Fixed Income revenues increased 7 percent to 103.5 billion yen. As I mentioned earlier, during the first half of the quarter, market participants remained on the sidelines over uncertainty surrounding monetary policy and geopolitics,
Slide 14: Investment Banking results
Net revenue was 45.4 billion yen, up 36 percent driven by strong performance in Japan and EMEA. This represents the best quarter since the fiscal year ended March 2017 when comparisons are possible. As shown on the left, Advisory and Financing and Solutions both reported revenue growth. In Advisory,
Slide 15: Groupwide non-interest expenses
Groupwide expenses increased 3 percent to 321.5 billion yen. Compensation and benefits increased 2 percent to 170.6 billion yen. Although severance-related expenses declined, the increase is due to yen depreciation and higher bonus provisions in line with improved performance. Please turn to page 15
Slide 16: Financial position and closing outlook
Tier 1 capital shown in the table on the bottom left was 3.4 trillion yen. Risk-weighted assets were 18.4 trillion yen. Our Tier 1 capital ratio was 18.3 percent and we had a common equity Tier 1 capital ratio of 16.2 percent, underscoring that we continue to maintain a robust financial position. Th
Slide 17: Financial Supplement
Financial Supplement 16
Slide 18: Consolidated balance sheet
Consolidated balance sheet (billions of yen) Assets Total cash and cash deposits Total loans and receivables Total collateralized agreements Total trading assets and private equity and debt investments? ee Total other assets’ 2,317 Total assets 47,772 Liabilities Short-term borrowings Total payables
Slide 19: Value at risk
= Definition = From April 1, 2023, to December 31, 2023 (billions of yen) — 95% confidence level — Maximum: 6.8 — 1-day time horizon for outstanding portfolio — Minimum: = 4.3 — Inter-product price fluctuations considered — Average: 5.5 (billions of yen) Equity 33 35 3.3 32 3.0 3.6 Interest rate 23
Slide 20: Consolidated financial highlights
1 Full year Quarter (billions of yen) (billions of yen) 200 8% 200 5 ‘mmm Net income (loss) attributable to 150, 430 6% = 150 Nomura Holdings, Inc. CNHI") 45% shareholders 38% 100 928 4.4% = 100 | 1% 36% —“_~__ 29% ROE (%) 669 50 2% so | 505 352 233 . il ° 0% o —_ pefraa] j= << Net revenue 1,363.9 1
Slide 21: Consolidated income
Full year Quarter (billions of yen) “Fragma Fyaozon5 — Fy2022/23 FY202926 Revenue Commissions 332.3 279.9 77.5 63.8 828 88.9 85.7 Fees from investment banking 149.6 113.2 33.8 28.0 31.1 38.6 55.2 ‘Asset management and portfolio service fees 270.0 217 67.0 67.4 18 76.7 1715 Net gain on trading 368.8
Slide 22: Main revenue items
Full year Quarter eens yen) BE Bee eee Stock brokerage commissions 236.4 190.8 526 41.3 55.2 58.3 56.4 Other brokerage commissions 18.0 17.9 43 4.0 40 40 3.9 Commissions for distribution of investment trusts 43.7 30.3 83 8.0 13.4 14.0 13.1 Other 34.3 41.0 12.2 10.4 10.1 12.6 12.3 Total 28 279.9 775
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 (lions of yen rami Frama Pema Retail 59.2 33.5 13.3 98 22.9 29.0 31.9 Investment Management 15 43.5 33.3 16.4 36 23.2 15.6 Wholesale 74.5 29.4 1.9 14.2 21 8.3 23.0 Three business segments tota
Slide 24: Segment Other income before income taxes
Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 595 30 219 15.8 15.7 kaka vo) 65 -30 9.9 4.8 Net gain (loss) related to economic . ing transactions 4.5 63 34 8.9 7.6 Realized gain (loss) on investments in equity securities held for opereting purposes 14 28.4 21.8 62
Slide 25: Retail results
Full year Quarter (billions of yen) Commissions 1385 01125 31.2 231 413 419 414 “2.0% 31.8% Ofwhich, stock brokerage commission 67.4 50.9 B4 84 19.1 18.8 17.2 87% 28.0% Ofwhich, commissions for distribution ofinvestment trusts 435 30.2 83 80 34 135 13.4 31% 57.5% Sales credit 44.0 442 122 10.6 12.8
Slide 26: Retail client assets
Retail client assets (trillions of yen) 8 888s = Other 140 122.4 122.2 120 = Foreign Investment Buss 10 = Bond investment trusts ‘= Stock investment trusts = Domestic bonds = Foreign currency bonds = Equities 7 117.6 122.2 133.3 134.4 I 135.9 [Mar Mar Dec Mar Jun | Sep Dee Equities 7.5 78.0 74.4 78.
Slide 27: Net inflows of cash and securities
Net inflows of cash and securities’ (billions of yen) Full year Quarter = Corporates mindividuals "Corporates Individuals 1,400 1,400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 | | ° ° | -200 | -200 ] EES Gael Corporates? 136 282 EEE 756 individuals? 600 438 269 173 244 26 464 Total 463
Slide 28: Number of accounts
Number of accounts (hotanis “Framavaa pvamaas ryan rvamang Accounts with balance 5,348 5,353 5,352 5,353 5,395 5,396 5,448 Equity holding accounts 2,955 2,993 2,967 2,993 2976 2,962 2,964 NISA accounts opened (accumulated)! 1,589 1,632 1,625 1,632 1,681 1,699 1,758 Online senice accounts 5,067 5,208
Slide 29: Investment Management results and AUM
Full year Quarter femtens of yen) ‘Promavae rranans eee ee ee Business revenue 119.9 120.7 31.4 28.7 325 33.4 33.3 0.3% 6.2% Investment gain/loss 28.1 79 25.6 9.1 6.0 11.7 5.6 52.0% — -78.0% Net revenue 148.0 128.6 57.0 7.8 26.5 45.1 38.9 13.7% 31.6% Non-interest expenses 76.5 85.1 23.7 21.5 229 21.
Slide 30: Asset inflows/outflows by business
Asset inflows/outflows by business’ 2 Full year Quarter (onions otyen) | Pram Prem ee ee Investment trusts business 1,236 156 -100 -358 649 475 -60 of which ETFs. 683 -250 347 221 42 266 131 investment advisory and intemational businesses 830 916 57 134 1,064 118 385 Total net asset inflow 2,086 -76
Slide 31: Wholesale results and revenue breakdown
Full year Quarter (billions of yen) Primm nme gg tga og Net revenue 703.1 772.4 189.1 178.8 190.9 204.1 217.0 14.8% Non-interest expenses 628.6 743.0 190.9 193.1 188.7 195.8 194.0 0.9% 1.6% Income (loss) before income taxes 74.5 29.4 1.9 14.2 21 83 23.0 178.0% : Breakdown of Wholesale revenues Full
Slide 32: Number of employees
Japan 15,213 15,131 15,282 15,131 15,382 15,158 14,996 Europe 2,820 2,937 2,908 2,937 2971 2,993 3,015 Americas 2,257 2,387 2,392 2,387 2,426 2,486 2,458 Asia and Oceania’ 6,295 6,320 6,634 6,320 6,465 6,492 6,449 Total 26,585 26,775 27,216 26,775 27,244 27,129 26,918 1. Includes Powai office in ind
Slide 33: Disclaimer
vv NOAURA 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
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com