Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2005.3 Earnings Presentation
36 slides from Nomura's earnings presentation, Oct 29, 2004
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 2004. 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)] 2
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 29, 2004 By: /s/ HIROSHI TANAKA Hiroshi Tanaka Se
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter FY ending March 2005
Table of Contents Consolidated (US Second Nomura October GAAP) quarter, 2004 Holdings, Results fiscal Inc.of year Operations ending March 2005
Slide 5: Disclaimer
Table of Contents 1. This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2004 Nomura Holdings, Inc. All rights reserved. 2. 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
Slide 6: Consolidated Financial Summary (1)
Table of Contents Consolidated (Millions Quarterly FY2005.3 Y-o-Y 2Q Net 72,466 ROE Shareholders’ Leverage 2Q revenue (annualized Q-o-Q 1Q -82% (x) of Semi-annual FY2004.3 1Hyen, 156,841 17.8 -78% Financial Y-o-Y equity 1Hper rate) 16.0 88,673 per share FY2005.3 214,687 0.7% 16.4 Summary share 159,2
Slide 7: Consolidated Financial Summary (2)
Table of Contents 4 Consolidated (Millions Quarterly FY2005.3 Y-o-Y 2Q Revenue Commissions 19,845 Gain Other Interest Net Non-interest -92%2Q revenue (loss) on 44,048 20,605 Q-o-Q 1Q 17,022 and expense investments 247,574 of Semi-annual FY2004.3 1H on dividends yen) 156,841 expenses 86,686 6,738 Fin
Slide 8: Review of Segment Information
Table of Contents Review Segment Domestic Global Asset Non-interest Management Wholesale ofInformation Retail Businesses Expenses (P7-8) (P9-11) (P12-13) (P6) (P14) 5
Slide 9: Segment Information
Table of Contents 6 Segment (Billions Quarterly FY2005.3 Q-o-Q 2Q Domestic 43.5 Global 42.7 Asset Net Total 22.0 3 business 1Q revenue 39.4 95.4 67.1 income Management Y-o-Y 4Q Wholesale Information of 10% -55% -67% Semi-annual Retail FY2005.3 segments 3Q yen) 64.8 65.4 11.0 before 2Q 59.9 9.7 87.0
Slide 10: Domestic Retail: 2Q Points (1)
Table of Contents 7 Domestic 2Q Revenue Commissions: Retail Individual Equity Commissions Stock Foreign Outstanding Insurance: (Note) Distribution (Issue Sales Investment New Hachinohe, Sasebo, Established Data FY03.3 Net Fees 28.2Points interest 36.5 from Cashless Credit: Investment Amount: Stock A
Slide 11: Domestic Retail: 2Q Points (2)
Table of Contents 8 Domestic Client 2Q Further *Domestic ** ***Includes NetIncludes Points asset Assets promoted inflow: Retail Retail CBs, variable (2) Gap warrants client “special annuity between assets, accounts insurance inflow excluding forand stocks,” financial outflow which of institutions as
Slide 12: Global Wholesale: 2Q Points (1)
Table of Contents 9 Global 2Q Revenue Decrease Equity Off-floor, Consolidated Foreign Rentenbank: Toyota Large EIB: KfW: Asset Large-scale Registered *Total **Data Points US$ Finance Euro Foreign transaction Agency Wholesale Markets Motor through Currency drops in off-exchange 328 5securitization bi
Slide 13: Global Wholesale: Investment Banking Points (2)
Table of Contents 10 Global Investment 2Q An Equity Value Major J-POWER *Source: Tailor-made MPO 10 HPO M&A Chugai Ricoh deals Points increase (Hybrid (Multiple Total Advisory — Deals and Wholesale Pharmaceutical in Thomson Acquisition Global 2Q: Equity-related Banking :in Financing US$ Private equi
Slide 14: Global Wholesale: Merchant Banking Points (3)
Table of Contents 11 Global Merchant 2Q Despite New Millennium Huis Acquisition Exit *Shares CCIPoints Transactions Ten Deals Wholesale arepurchased Bosch successful Banking of Retailing new(3) shares domestic by CCIby billion (8 third exit transaction, party yen)allotment Terra (20 Firma billion fu
Slide 15: Asset Management: 2Q Points (1)
Table of Contents 12 Asset 2Q Revenue An “Fund Fund 277.6 New 3 Increased 31.6 (Funds Global NCRAM US$ new Points increase billion 8.9 Funds of Management billion Fund of High for Funds billion Funds” Assets Assets Bank yen Masters in Income yen assets Assets as as Under Channel) of Growth asof of (
Slide 16: Asset Management: Assets Under Management (2)
Table of Contents Asset Assets 2Q Although Points Management Under the stock Management market (2) decline and other factors resulted in an overall decline in assets under management, investment advisory assets, particularly from overseas investors, continued to increase. 13
Slide 17: Non-Interest Expenses: 2Q Points
Table of Contents 14 Non-Interest 2Q Non-interest Compensation Information Business (Asset Asset Fixed-type Fixed FY03.3 Other 13.3 63.6 14 Points 13.0 57.7 management-related management Expenses: 17.6 salaries, management-related 1QDevelopment Information 59.5 13.7 expenses: FY03.3 Processing expen
Slide 18: Appendix
Table of Contents 15 •Appendix Assets VaR Global Domestic Major Revenue Client Secondary Primary Lead Number (P31) Manager Assets Differences Under Wholesale Market of and (P21—24) Retail Market Accounts Employees Income (P25) Management League Share Related (Revenue (Segment Share (P26) by Data Tab
Slide 19: Revenue and Income by Business Segment
Table of Contents 16 Revenue Domestic 74,970 18,676 Global 89,861 36,474 Asset FY03.3 1Q Non-interest 10,613 16 2QManagement 3Q Wholesale 75,592 20,080 55,294 8,974 9,042 FY04.3 and Retail 4Qrevenue Income 21,749 9,673 1Q 75,353 20,019 70,695 FY05.3 Unit: 2Q Unit: Unit: 10,994 23,835 66,436 73,321 9
Slide 20: Global Wholesale: Fixed Income and Equity
Table of Contents 17 (Revenue Global Fixed 12,176 Equity FY03.3 1Q Net 4,404 * in 17In composition 2Q revenue April 3,911 Income Unit: 3Q Wholesale Markets* 37,168 FY04.3 and 2004, 4Q 19,748 71,799 43,887 30,416 millions Income related Unit: 1Q 25,844 toFixed Unit: Fixed 2Q -2,984 millions 44,886 32
Slide 21: Global Wholesale: Investment Banking and Merchant Banking
Table of Contents 18 Global (Revenue income Merchant FY03.3 1Q Net Non-interest In Investment 18 April 2Q revenue 3Q Wholesale taxes FY04.3 2004, and Banking 4Q Banking 16,830 -1,272 expenses 2,980 Income Fixed 1QFY05.3 2Q Unit: -5,989 2,817 16,453 Unit: prior Income, 3Q by 2,253 millions Business 4
Slide 22: Domestic Retail Related Data
Table of Contents 19 FY03.3 1Q Retail Commissions investment Domestic (Trillions 0.5 3,883 * ** 19Nomura Commission 2Q 0.43,612 Foreign 3Q 0.6 FY04.3 of Retail distribution Securities 4Q 0.5 trusts 3,302 yen) for 1Q Currency 0.8 FY05.3 during Related commission 3.3 investment 2Q 0.52.5 2,910 3Q volu
Slide 23: Major Differences between Segment Data and Income Statement
Table of Contents 20 Major (billions Total Loss/gain -1.1 O Unrealized Effect Difference Incom 20 ther -1.9 Incom of Differences 3.1 e before of consolidation/deconsolidation on -2.1 betw loss/gain yen) eundesignated before 1.0 Incom 1Q een(Segment 2Q Segm on Incom e 1H investm Taxes ents hedging eD
Slide 24: Revenue Breakdown (1): Commissions
Table of Contents 21 Revenue FY03.3 1Q Total commissions 25.6 21 2Q28.2 46.1 3Q FY03.3 (1) 36.5 34.7 4Q(Commissions) 1.9 1Q 19.9 34.3 FY03.3 1.5 2QRetail) 26.6 2.1 3QFY03.3 2.1 33.8 4Q3.1 1Q56.0 2.6 FY04.3 2Q57.6 1.5 5.0 62.9 FY04.3 3.169.5 2.9 FY04.3 45.6 StockOther FY04.3 brokerage 5.7 FY05.3 9.8c
Slide 25: Revenue Breakdown (2): Fees from Investment Banking
Table of Contents 22 Revenue (Fees FY03.3 1Q Total 12.6 22 2Q8.8 15.6 from 3Q FY03.3 6.1 (2) 18.3 4Q Investment 6.11Q 16.9 5.3 FY03.3 2Q4.9 31.0 3QBanking) 4.4 FY03.3 14.5 4QEquity 1Q19.9 FY04.3 2Qunderwriting 24.4 28.2 FY04.3 15.4 commissions FY04.3 32.3 Other FY04.3 3.7 0.3 FY05.3 5.6 1.0 4.4 0.6
Slide 26: Revenue Breakdown (3): Asset Management and Portfolio Service Fees
Table of Contents 23 Revenue (Asset FY03.3 1Q Total 10.5 23 2Q9.4 24.2 Management 3QFY03.3 10.8 (3) 21.9 4Q11.8 1Q 17.5 FY03.3 2Q 12.1 and 15.7 3Q12.5 FY03.3 Portfolio 13.7 4Q12.4 1Q17.0 FY04.3 2QService 16.8 18.6 FY04.3 Fees) 18.2FY04.3 19.8 Custodial FY04.3 FY05.3 fees 2.4FY05.3 2.3 2.3 2.2 2.4 2.
Slide 27: Revenue Breakdown (4): Net Gain on Trading and Net Interest
Table of Contents 24 Revenue (Net FY03.3 1Q Total 2.3 24 2Q -7.4 Gain 56.8 3Q FY03.3 -1.0 (4) on 66.6 4Q-5.4 Trading 1Q 81.5 FY03.3 -0.6 2Q80.3 8.3 /3Q Net FY03.3 113.9 4Q -1.5 Interest 1Q 8.4 99.5 FY04.3 2Q 3.4 Revenue) 42.8 -1.8FY04.3 86.4 investment/merchant 74.6 FY04.3 50.1 Net FY04.3 interest b
Slide 28: Client Assets
Table of Contents 25 (Trillions Nomura investment 0.0 Client Jun. 4.7 1.3 * 25As1.4 0.0 4.9 02 ofAssets 0.0 5.0 1.5 Sep. the Securities of1.7 0.0 5.0 end trusts yen) 02 (Domestic Total 5.1 Other of Dec. 2.7 September 5.351.8 02 0.1 2.5 5.7 Mar. Mar.03 Retail, 0.2 2.4 50.0 6.10.2 2.4 03 2004, 6.5 48.
Slide 29: Number of Accounts and Online Trading
Table of Contents 26 Number IT No. Nomura Equity Jun.02 New FY03.3 1Q 20 26 Share 22 2Q ofAccounts 20 orders Sep.02 Holding 3Q FY04.3 of Home Cash 164Q Accounts 1639% Management 1Q Dec.02 (individual, Trade 21 Accounts FY05.3 2Q 24 38% (online 26 3Q Mar.03 33% 27 4Q (Thousands monthly Service 281Q 4
Slide 30: Secondary Market Share Data
Table of Contents 27 (Market Individual O JG Secondary FY03.3 1Q M 27ff-floor/O ff-floor arket B 2QAuction 3Q FY04.3 5.2 16.8 296 unit m Equity 4Q Market Bond 3.9 299 ff-exchange arket :18.2 Share Trillions 1Q5.2 FY05.3 Trading 261 Agency 2Q 15.7 4.1 Share 3.1 273 3Q 4.1 5.0 17.3 ofData Equity 4Q 32
Slide 31: Primary Market Share Data
Table of Contents 28 Primary02.4-9 Straight Global Convertible Japanese FY03.3 02.4-6 Source: 28 and FY04.3 Thomson Bonds, Market IPO POEuro Bonds 02.4-12 Lead FY05.3 Share Yen Financial Bonds Manager 02.4-03.3 Data (Value (excl. 03.4-6 Base) self-funding) 03.4-9 03.4-12 03.4-04.3 04.4-6 04.4-9 Nomu
Slide 32: League Tables
Table of Contents 29 League Global Any Advisor Straight R Book 1 2 3 4 5 6 7 8 9 10 *Based 29Deutsche Barclays UBS JP Lehman Citigroup Daiwa Nomura Mizuho Nikko Mitsubishi UFJ Goldman Morgan Merrill 1/1/2004—9/30/2004 Deutsche Mizuho UBS Shinko Morgan Japanese Runner Tsubasa 4,532.5 68,292.4 Equity
Slide 33: Assets Under Management (NAM / NCRAM)
Table of Contents 30 Assets NAM Non-public Total NCRAM Jun. 30 02 17.1 (Trillions Under Sep. (US$ 15.6 investment 02 Management Billions) 15.1 Dec. of yen) 14.2 02trusts Mar. 14.5 (NAM 0.2 03 15.4 Jun. 0.2 /15.2 NCRAM) 0.2 03 Sep. 15.7 0.2 0.3 03 15.7 0.3 Dec. 15.1 0.4 030.4 Mar. 0.504 0.6Jun. Inves
Slide 34: Value at Risk
Table of Contents 31 Valueof 99% Definition 1-day Inter-product From Maximum: Minimum: Average: (Billions End Equity Sub-total 31 confidence Apr. time at1.8 quarter Risk of 4.35 3.8 1, 1.3 2.8 horizon 10.7 yen) 2003 3.5 price (Consolidated) billion 1.3 Jun.02 billion billion level 3.5 1.5 to fluctua
Slide 35: Number of Employees
Table of Contents 32 Number Mar. 935 9,697 Total *Excluding 32 Europe 01 14,393 9,969 Sep. of Employees NPF’s 1,370 9,258 14,856 01 Mar. 1,449 9,561 consolidated 14,550 02 1,381 Sep. 9,435 14,608 02 1,352 9,316 subsidiaries Mar. 14,046 1,389 9,148 03 Jun. 14,403 1,439 9,430 03 Sep. 1,372 9,424 14,19
Slide 36: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com