Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2010.3 Earnings Presentation
59 slides from Nomura's earnings presentation, Oct 30, 2009
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 Supplement for the month of October 2009. NOMURA HOLDINGS, INC. (Transla
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), Second quarter, year ending March 2010
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: October 30, 2009 By: /s/ Shinichiro Watanabe Shinichiro W
Slide 4: Consolidated Results of Operations (US GAAP), Second Quarter
Table of Contents Consolidated Second Nomura quarter, Holdings, Results year Inc. ending ofOctober Operations March 2009 2010 (US GAAP)
Slide 5: Important notice
Table of Contents Nothing securities or No accepted This be nature, liquidity Thesales read part information consolidated document are in of may in of by issued the this inherently this secondary Nomura be context document is contains document made. and by financial produced Nomura opinions for unce
Slide 6: Presentation Outline
Table of Contents Presentation Outline Net Overview Leading ECM EAFE Exchange Broader, Wholesale Well Allocation Americas Robust We Level Key A Financial Second First Segment Non-interest Retail Global Investment Merchant Asset Value Number Consolidated Adjustment Main year have revenue performance
Slide 7: Overview of second quarter results
Table of Contents Overview Profitable Highlights Retail Wholesale One Capital However, Second Income Y27.3bn *41. Net income1 year Pretax 100 11.4 -300 continued FY2009.3 2Q Net 1,539.4 -38.18 3Q income ratio quarter before revenue 31.4 -100 -226.9 and income after booked of for build -179.62 4Q 1,5
Slide 8: Net revenue and pretax income by region
Table of Contents Net New Booked Breakdown 0-(billions 50 100 150 200 250 300 350 -150 -100 Japan Non -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% FY2009 5FY2010 50 revenue Japan platform Total pretax 3Q 4Q 1Q 2Q of Total yen) of andcontributing revenues profit pretax in income all Breakdown re
Slide 9: Breakdown of segment results
Table of Contents Overview Breakdown Retail 17.1% ECM (Jan Best 1. 2. 3. 4. annualiy. 5. 6. Note: Market Investments: 6(billions As Share Source: Global–Investment Retail, Asset chosen All market Management under client Sep asset Investment Merchant Markets 1ofLSE data Banking of LSE. Eurex Ministry
Slide 10: Retail: leading share of investment trust purchases
Table of Contents Leading Continued Maintained Total Stocks (billions 021,600 1. Share Others C A 2. Nomura 009.4 15% 14% Purchases Source: purchases 1,400 of7% Bonds 2009.5 share 53% Retail of newly Nomura, to yen) leading 1,200 of achieve B Investment in 2009.6 flagship launched investment by 12%
Slide 11: Retail: customer-focused initiatives
Table of Contents Retail Focused Achieved Customer-focused Asset Financial Customer Improved 144 100 Management 1. 2. 8Nomura FY2009.3 134 100Management business 128 100 Retail on Consulting significant productivity Services reorganizing 2Q Wealth flagship initiatives to channel = 100 Financial FY20
Slide 12: Asset Management: robust performance
Table of Contents Asset Robust Recorded Assets (trillions 22.0 18.5 19.0 16.4 19.5 16.8 20.0 20.5 17.2 17.1% 21.0 17.6 21.5 Nomura (billions FY2010.3 600 Rank Net 32400 4200 -05 600 asset 116.0 FY2009.3 1Q Agreed Asian “Asset Global 18.0 Name Management Nomura under -sales “Specialist European “Emer
Slide 13: Investment Banking: maintained leading market share
Table of Contents Maintained Advised Korea Asia-Pacific China Taiwan India M&A Japan United Europe (Sep) HSBC Spain Netherlands Switzerland France Italy Canada Americas ECM US Source: 10 Aegon Toshiba and Beijing HDFC Banco Givaudan Saint-Gobain Enel First Fortress eBay-Gmarket UnitedMicroelectronic
Slide 14: EAFE wholesale achievements
Table of Contents EAFE1wholesale #1Recent Month 1. 4x 2. 3. 4. 5. 6. EAFE Top Average EMEA Asia6 Net (ex-Japan) 3x Asia FY08/3 11 (Jul 1on April Top Volume EAFE=Europe, Source: (ex-Japan) on revenue 10 LSE (ex-Japan) –Fixed Equities Eurex 10 end EAFE 15x 7x 5x 31x rankings Sep to Q2 #Euro (ex-Japan)
Slide 15: EMEA market share
Table of Contents Number Exchange London Eurex 10% 25 0.7% 14% 61 0.2% 1Jan %Mkt Note: 1256 10 11 10 Feb 612% 20 9% 2.7% 4.3% 11 Nomura (equity 15 4 share 30 Mar Stock 318% 11 20 10% market 3on 40 3.2% 4.9% 8#1 (value) Apr 7% 25 LSE Eurex 3index 50 Exchange market 10% #1 #1 30 6% 3.2% 5.6% May 60 sh
Slide 16: Asia market share
Table of Contents TSE8.0 Exchange Japan 9.0 08.01 350 Taiwan 700 India Jan-09 MARKET Note: 13 300 600 market 600 Nomura 08.03 Hong Sep-09 7.0 600 250 500 500 market NOMURA 6.0 500 Kong 08.05 share 200 400 400 market 100 5.0 400 150 300 share up South (%) 08.07 300 156 367 198 180 300 2% 100 200 shar
Slide 17: Exchange coverage
Table of Contents Exchanges US Chicago Philadelphia Boston UK Ireland Euronext Eurex SIX Greece Germany Austria Borsa OMX Bangkok SGX, Hong Bursa Bombay Korean Japan Taiwan Sydney Exchange 1. 14 Excludes PD PD Swiss Kong Singapore PD Italiana Malaysia Copenhagen, Matif American PD Stock Stock PD Lon
Slide 18: Broader, deeper client base
Table of Contents Broader, Active 4.1x 1.7x NJA US 1.5x 3.4x 2.4x Sep EMEA Global Revenues Client 2009 2008 1. 2. 15 Global Client Cash 09 08 Cash YTD ann. A BClients C D E F G JIH 1 2 3 4 5 6 7 8 9 10 Equities Fixed Cash NJA deeper numbers clients from ann. US Income Numbers top client for for 10 E
Slide 19: Global wholesale market share
Table of Contents Global Increasing Net (billions 09 0% 2% 4% 6% 8% 10% 12% 4.2% 0.5 1.5% 0.2 0.6 0.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 (% 1H IB Wholesale MS BarCap CS DB BoA/ML Citi JPM GS UBS Nomura 1. Note: GS, Jan-Mar FI share) 9.6% 19.4% 9.8% revenue 6.4% 12.3% 14.2% 4.1% EQ No JPM, wholesale 8.8% 4.
Slide 20: Wholesale investment banking share
Table of Contents Investment Wholesale 1.GS, 2.Wholesale Note: Global GS19.4% Nomura UBS GS JPM Citi BoA/ML DB BarCap CS MS 17 9.6% 14.4% 6.9% 8.4% 22.5% 11.7% 20.5% 9.8% 8.6% 8.5% 10.7% 6.4% 6.6% 10.8% 4.9% 12.3% 5.9% 11.6% 15.3% 14.2% 6.2% 19.5% 15.9% 4.1% 9.7% 7.2% 0.7% No JPM, Equities Fixed 8.8
Slide 21: Merchant Banking
Table of Contents Continue Business 400 433.8 100 200 65.9 60.3 S 187.2 Terra Merchant (billions 0-20 1.3 -40 -23.0 -20 FY2009.3 2Q 18 3.6 ep.14.6 3Q -37.6 368.6 214.0 30, Firma 4Q2008 of exposure to Banking 154.8 FY2010.3 1Q yen) Asia focus Sep. 2Q40 500 300 Europe on is net 30,112.3 declining. inc
Slide 22: Well positioned for regulatory changes
Table of Contents Well Regulatory Significantly Use Nomura Expected Increasingly Actions Industry Efficient Shift Increase Increased A Leverage Major Liquidity 19gross of positioned tointensification stressed less leverage to plans cost trend use regulatory quantity regulatory maintain capital capit
Slide 23: Capital allocation
Table of Contents Allocation Capital 1. 2. 3. 4. •5. 20 Invest Build Develop Evaluate Strategic Hold Prepare Asian Retail US EAFE Buffer build aout allocation in and buffer expansion wholesale for onshore IT potential business of product out Islamic the increases platform capital against future high
Slide 24: Global Markets Americas organization
Table of Contents Global Strong Ex Liquid Prog. Americas Products Foreign 21 - Lehman BoA Elec. Markets team Securitized Sales Global Fixed Equity with Americas Research Prime organization Income Markets established Flow Rates Services Equities Jeff Structured organization Credit Michaels in track E
Slide 25: Americas business build-out
Table of Contents Americas Following Cash 6.3x November Flow 1.5x August Equity Average 2.7x June 5.6x 1st Note: Currency week 100 09 equities rates Volume derivatives 2009 September daily 627 149 270 563 of trading business on and 2008 September September (European, from uplift trades flow Septembe
Slide 26: Robust financial position
Table of Contents Robust Financial (billions Balance Proforma Shareholders’ Gross Level Liquidity *Total Adjusted Net 9.5x 312.1x 23 Tier 17.3% 1. 13.3% 2. 3. Net US S&P assets capital AA-A+ UBS 3GAAP Noleverage ratio financial leverageassets sheet of Y3.5trn Indicators Figures 1(Proforma, Presentat
Slide 27: Balance sheet composition
Table of Contents We have Majority Balance FY09.3 JPY Assets Cash Reverse Governments Corporate Equities Collateral Derivatives Private Leveraged Whole Other Total Highly Trading Increased Less Cautiously Currently 24 billion liquid and assets assets loans, liquid equities Q2 assets sheet Sheet repo
Slide 28: Level 3 assets
Table of Contents Continue Net Highlights Declined After Well Level DB 99% basis Source: Breakdown 1. 2. Private Mortgage Equities Bank Derivative 16% Other 25 Competitor Chart Preliminary Net CS Level 25% positioned (DB). capital and 3basis. Equity MS assets Nomura, shows by to corporate and 18% 3c
Slide 29: Key performance indicators
Table of Contents Key1Q Retail Market Japan LSE Share Note: Asset Assets (trillions Global FY2009.3 Share2 4Q 26 performance share No Management based LSE client under 2Q Equities Fixed share1 of representations FY2010.3 is US yen) on assets total management Income peer indicators of group Nomura or
Slide 30: Key performance indicators
Table of Contents Key Investment Global Rank1 Return 3.0% -58.4% 1. 2. Merchant 366.3 0.3% Cost (billions 30 100 FY2009.3 NPE 45 25 4Q Target 27 Source: PE=Personnel PE 1Qperformance efficiencies 7.0% -0.9% 382.1 PE 2Q ECM onofBanking NPE equity FY2010.3 Thomson yen) Banking -6.3% 368.6 ranking Curr
Slide 31: A year of transformation
Table of Contents A year 2008 Create Transition in Speed Low System Return Returned Expanded Rapid Personnel cost Launched Higher Rank Primary Investment Best Employee Americas 2009 Broad New World-class Enhanced Market Total Headcount Tier Global 28 in conversion 2: 1: M&A T+70 latency wholesale pr
Slide 32: Financial Supplement
Table of Contents Financial Supplement
Slide 33: Consolidated financial highlights
Table of Contents Consolidated Full 200 FY2005.3 -800 -708.2 -600 Income Net 94.7 Total ROE 48.80 (billions Quarter 0100 11.4 27.7 FY2009.3 -400 -342.9 -300 -215.8 -200 2Q 128.1 -69.4 -72.9 -1,810.1 1. 30 100 -94.7 Quarterly -3Q revenue income 3.0% 5.2% 7.0% year 304.3 -72.9 (%)1 Nomura -399.6 -342.
Slide 34: Consolidated balance sheet
Table of Contents Consolidated (billions Mar. 2009 Assets Cash Payables Loans Collateralized Long-term Trading private Other Noncontrolling Total 1. Note: 31 Including 31, 2009 and Nomura assets Certain assets and Liabilities equity liabilities assets of Sep. and cash receivables (Decrease) borrowin
Slide 35: Second quarter segment income
Table of Contents Second Net 300 18.7 301.9 350 288.6 25.7 20.9 200 28.0 14.7 20.5 5.2 74.5 -100 136.4 Income (billions 100 29.1 21.7 1.3 4.5 50 13.6 0.8 014.6 -5.5 -150 -295.5 -300 -250 FY2009.3 2Q -61.1 Retail: Reference Global Investment Merchant Segment Adjustment Asset Other Note1: current Note
Slide 36: First half segment income
Table of Contents First Net 700 35.1 400 52.5 65.0 35.8 34.2 4.4 -200 270.8 Income (billions 200 50.8 300 100 8.9 03.9 -3.3 -61.3 -400 -300 FY2009.3 -700 1H -146.1 Retail: Reference Global Investment Merchant Segment Adjustment Asset Other Note1: current Note2: 33-44.2 21.5 2H 29.3 -611.0 54.2 reven
Slide 37: Retail business performance
Table of Contents 120 80 60 27.9 20 -40 -5.5 FY2009.3 2Q Full (billions 446.5 500 400 300 0F 18.2 100 81.2 122.3 200 Business Second Income Consulting-based Growing 71,000 Sales Investment Newly Nomura Schroder Quarter Total Net Reference Retail Number 34 20 Y2005.3 74.5 61.9 5.3 3Q Net revenue 95.4
Slide 38: Global Markets business performance
Table of Contents 187.1 100 50 -200 -150 -86.7 -100 -250 -295.5 2Q Full (billions 400 243.1 200 0-60.2 -600 -400 FY2005.3 Business Second Revenue Flow Robust Revenues Japanese Nomura Quarter Received Number Instinet: Chi-X Started Global Net Reference Monoline Value 35 509.4 2003Q -6.5 revenue 150 6
Slide 39: Investment Banking business performance
Table of Contents Investment Quarter 10 20 40 -9.7 -5.4 -41.3 -19.9 -8.7 20.9 25.7 6.6 22.7 5.2 -50 -40 -30 -20 Income 2Q Full 0-(billions 30 60 90 120 -Business FY2009.3 FY2008.3 FY2007.3 FY2006.3 FY2005.3 -57.4 22.8 44.4 51.5 29.2 63.5 83.1 99.2 99.7 75.4 -60 -Second -Japan -Europe Major -Equity -
Slide 40: Merchant Banking business performance
Table of Contents Merchant (40 Quarter 14.6 3.9 20.5 -37.6 -40 2Q Full (billions 80 40 60 0-20 -20 -80 FY2005.3 -100 -Business -Second -Total -Continue Net Reference Business 37 1.17.3 3.068.2 55.4 3Q billions -40 -85.3 revenue -18.4 year 1.3 investments 4Q -60 65.0 52.8 quarter of exposure: -69.9 B
Slide 41: Asset Management business performance
Table of Contents Asset 18.7 30 10.8 -10 2Q Full (billions 88.1 100 80 47.6 60 59.8 40 20 13.0 0F Business Second Outstanding Quarter Delivered In Net Reference Assets Investment 1. Note: 38 presentation. 10 Y2005.3 Excludes investment 14.7 5.1 64.1 23.8 7.4 3Q Net revenue year 16.5 13.1 88.7 39.4 T
Slide 42: Segment Other
Table of Contents Segment Income Business Second (billions Includes 60 Nomura Holdings 40 17.8 020 -20 -20.9 -40 -60 -65.4 -80 JAFCO 2Q Net hedging 1.9 Realized held -0.5 Equity -22.9 1. Note: 39 presentation. 0Businesses 60 40 8.5 3Q -20 -27.3 -60 -80 gain for on -22.9 -64.6 The to adjustment 13.6
Slide 43: Non-interest expenses
Table of Contents Non-interest Full (billions 1,200 1,000 326.1 349.9 1,092.9 800 607.2 0100 FY2009.3 FY2006.3 2Q Second Turning Reduction Compensation Variable-type Commissions Information Occupancy Business Other Total Number Reference 400 3Q Commissions year 607.2 400 197.5 852.2 expenses 94.1 4Q
Slide 44: Retail related data (1)
Table of Contents FY2009.3 FY2005.3 (billions Commissions Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Other Accumulated Sales Retail 1. 41 Nomura interest revenue from credit of investment (billions investment related foreign before investment JGBs ofdistribution investment F
Slide 45: Retail related data (2)
Table of Contents Retail Quarter 50 QoQ 2Q 10.7 Commissions 1. Full (billions 180 150 90 0F Stock 42 Y2009.3 Y2005.3 Nomura 40 60 3Q Commissions year 15.0 YoY 30 brokerage related 4Qof 20 10.3 FY2010.3 FY2006.3 1Q Securities yen) 10data for 2Q 15.8 commissions distribution for (2) 14.7 FY2007.3 dist
Slide 46: Retail related data (3)
Table of Contents Retail Full (trillions Total4 100 Other 80.5 67.2 Mar. Equities Foreign Domestic Stock Bond Overseas Other4 Total 1. 2. 3. 4. 43 Domestic Euroyen Includes year 31, 61.2 investment 80 investment related client 85.2 1.9 currency 33.5 2005 of 72.2 Quarter mutual bonds bonds3 80.5 2.3
Slide 47: Retail related data (4)
Table of Contents Retail Full (billions 4,868 6,000 5,975 6,749 8,000 2,003 4,000 0F 2Q 1. Note: 44 Y2009.3 Retail 3Q year Net 4,928 2,000 related client 4Qof client Quarter asset FY2010.3 1Q yen) 4,581 1,610 assets: data 2Q assets inflow 1,407 (4) Net FY2005.3 exclude =asset 1,441 assetinflow1 port
Slide 48: Retail related data (5)
Table of Contents Retail Number Mar. (thousands) Equity Nomura Full FY2009.3 2Q New IT No. Transaction 1. 45 IT share1 3Q of year 31, individual share related orders holding 4Qof Home 2005 Quarter FY2010.3 1Q is accounts Accounts value the 52% data Mar. 2Q Trade accounts accounts percentage 24% (5)
Slide 49: Global Markets related data
Table of Contents FY2009.3 FY2005.3 (billions Global Other Net Non-interest Income Note: Credit Sep. Jun. Monoline (No. AA(1) adjustments Non-investment Total 1. 46 Based revenue 30, 30, of $8,508 $8,557 In 33.1 derivative $211 $246 Markets Fixed Equities companies) before 2009 April 2009 of on insu
Slide 50: Investment Banking related data
Table of Contents Investment FY2009.3 FY2005.3 (billions Net Non-interest Income Note: League Equity Jan. Rank 321(US$m revenue 1,Bookrunner In2009–Sep. capital )tables before April of share FY2010.3 FY2006.3 Nomura yen) Banking 75.4 expenses markets 2004, income deals Goldman Daiw 2Q 99.7 30, Proce
Slide 51: Merchant Banking related data
Table of Contents Merchant FY2009.3 FY2005.3 Net Non-interest Income Business Full (billions 600 381.4 439.1 300 200 0M Japan Europe Asia Sub Terra Total Note: Amount 48ar.revenue 543.4 260.2 Total year -31, 500 457.6 Firma Firma) Firm Amount 382.1 108.4 3.2 (excluding before of 2005 exposure Quarte
Slide 52: Asset Management related data (1)
Table of Contents Asset FY2009.3 (billions 2Q Net Non-interest Income The Total presentation. Full (trillions 25 25.8 27.0 30 20 520.2 10 49 0M 23.1 17.9 3Q revenue Note:defined year assets In Management Research ar. 31,4Q before 22.2 15 January of of TotalQuarter FY2010.3 1Q yen) 2005 andyen) under
Slide 53: Asset Management related data (2)
Table of Contents Asset 25 25.9 21.0 21.1 0M Investment Overseas Total Mar. Domestic Market Nomura’s Source: Nomura Full FY (trillions Exclude Public Privately Net trusts 50 ar. 24.3 FY asset year 31, 16.0 Management stock bond FY 28.9 13.5 21.8 Investment Asset ETF Mar. of Quarter placed inflow inv
Slide 54: Value at Risk
Table of Contents Value4.1 99% Definition 1-day Inter-product From Maximum: Minimum: Average: (billions 2005 Equity Interest Foreign Sub-total Diversification VaR 51 confidence 2006 April time at3.0 rate exchange 7.0 risk of 12.3 6.5 6.0 2007 9.9 horizon yen) 14.3 1, 6.2 2.8 10.7 price 2009, 4.7 ben
Slide 55: Number of employees
Table of Contents Number Mar. Japan Europe Am Asia-Pacific3 Total 1. Note: 52 Excludes ericas 31, 14,390 Headcount (excluding (FA)2 1,535 of 2005 1,026 employees employees 1,875 14,932 1,515 718 Mar. 1,073 FA)1 figures 778 1,948 31, 1,791 16,854 900 1,322 9,236 of 2006 have 2,174 private 1,956 1,070
Slide 56: Consolidated income statement
Table of Contents Consolidated FY2009.3 (billions 2Q Commissions Revenue Fees Asset Gain Private Other Total Interest Non-interest before Income (“NHI”) Net 1. Note: income 2. Investment 53 The In3Q gain revenue income accordance from (loss) revenue management 32.3 above income 4Q equity from and ex
Slide 57: Adjustment to segment information
Table of Contents Adjustment (billions 2Q Retail Global Investment Merchant 5Asset Other Segment Unrealized securities Effect certain Income US operations Total 1. Note: segment addition, investments 2. income 3. 4. onward. 5. 54 presentation. Business The Gain In 3Q GAAP April accordance January 20
Slide 58: Main revenue items
Table of Contents Main (billions 2Q Stock Commissions Fees Investment Other Banking Management Asset and service Bonds Equity on Net Total 1. 55 Includes trading1 3Q portfolio gain interest from 222.0 92.3 78.5 276.0 revenue management brokerage 24.1 0.1 and underwriting 76.8 4Q fees of0.1 Bond 108.
Slide 59: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com