Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Day (April 2016)
21 slides from Nomura's investor day presentation, Apr 27, 2016
Slide 1: Investor Day
Connecting Markets East & West Investor Day Tetsu Ozaki Group COO Nomura Holdings, Inc. April 27, 2016 © Nomura
Slide 2: Long term vision and future direction
Long term vision and future direction “Vision C&C” Long term vision Create solid operating platform to ensure sustainable growth under any environment Challenges to achieving long term vision Continue initiatives to transform: Transformation of business model in Understand clients’ diverse needs a
Slide 3: Wholesale
Wholesale
Slide 4: Global business
Global business Leverage strengths in APAC to deliver competitive services to clients in Europe/US and Asia: “Connecting Markets East & West” Financial Americas EMEA institutions Strengthen franchise, maintain Focus on areas of strength Institutional full service platform Corporates investors Leve
Slide 5: Operating environment: Challenging conditions in short term
Operating environment: Challenging conditions in short term Challenging market conditions expected to continue in short term due to regulatory uncertainty and macro environment FY2016/17 FY2017/18 FY2018/19 FY2019/20 Consultative process and final discussions Some regulations Some regulations commen
Slide 6: Fee pool deteriorated / decline in 2016
Fee pool deteriorated / decline in 2016 Wholesale fee pool1 (billions of USD) -17% CY2016 fee pool expected to decline by 315 about 8% YoY, or 17% in bear case scenario Investment 54 267 -8% Banking 244 Could drop more than GDP for first time 235 54 221 226 220 in 20 years 69 49 203 Equities 54
Slide 7: Enhance management structure: Operating model for end-to-end synergies
Enhance management structure： Operating model for end-to-end synergies Enhanced management structure to enable swift decision making as Wholesale Swift decision making as Wholesale Joint Head of Wholesale Division Joint Head of Wholesale Division Steven Ashley Kentaro Okuda EMEA Americas Japan AEJ B
Slide 8: Strategic actions
Strategic actions Maintain/grow Streamline Close Accelerate focus on core businesses based on strategy announced at Nomura Investment Forum 2015 EMEA Americas APAC Key Actions 1 Maintain/grow existing services, while aligning them with Primary and Low Advisory M&A Solutions business Instinet Int
Slide 9: Continued focus on reducing costs
Continued focus on reducing costs Wholesale costs1 and new run rate costs (millions of USD) -15% Approx. 7,519 Since 2011, Fit for the Future and other - 20% 6,879 initiatives helped reduce costs by 15% 6,511 6,419 over three years Variable 5,871 costs Continue to review businesses from FY2015/1
Slide 10: Focus on client businesses in areas of strength
Focus on client businesses in areas of strength Grow client businesses in focus areas while lowering cost base: Aim for PTI margin of 10-15% (millions of USD) Client revenue cost coverage ratio (rhs): +16 points 10,000 120% Wholesale costs 97% 100% 8,000 81% 80% 6,000 60% 4,000 40% 2,000 20% Client
Slide 11: Capital Optimization
Capital Optimization Wholesale RWA (Basel 3) April 2016 onwards : Reallocation of Capital Outlook for Indexed to 2013 = 100 Revenue Nomura capital Outlook allocation -18% Approx. Advisory Capital Light 100 96 -20% 82 72 Agency Capital Light Execution Partial redeployment Primary Deploy balance sheet
Slide 12: Retail and Asset Management
Retail and Asset Management
Slide 13: Meeting client needs through consulting services
Meeting client needs through consulting services Conduct client interviews and provide services for real estate, insurance, cash and deposits, etc. Growth of insurance business Breakdown of portfolio for households Growth of real estate business with over Y100m in assets1 (billions of yen) (billions
Slide 14: Transforming our revenues: Growth in recurring revenue
Transforming our revenues: Growth in recurring revenue Recurring revenue up Y22.5bn over past two years driven by growth in Retail client assets Retail net revenue Retail client assets Investment trusts 18% Recurring Investment trusts: Y16.6trn Investment trusts revenue Discretionary investments: an
Slide 15: Fund Wrap (1)
Fund Wrap (1) Core assets for growth through stable management Regular reviews of asset allocations Regular rebalancing EM bonds 3 3 3 Start months months months Invest- Foreign bonds ment trusts Core assets Review asset Review asset Review asset allocation allocation allocation Client’s own rev
Slide 16: Fund Wrap (2)
Fund Wrap (2) Approx. 80% of clients choose conservative or mildly conservative1 Approx. 30% of total in increased contracts (billions of yen) 105 800 40% 35% Increased amount 33% 100 New contract amount 600 Ratio of increased 30% amount 95 24% 90 400 20% 85 11% Conservative Mildly conservative 200
Slide 17: Asset Management: Broad range of investment solutions
Asset Management: Broad range of investment solutions Existing solutions New solutions Privately placed funds ETFs Wrap service platform Mar 2015＝100 AuM Domestic share (trillions of yen) 48% 47% 49% 48% 140 10 47% 50% 130 121 120 109 107 8 7.6 7.5 40% 100 6.8 7.0 100 6.2 6 30% 80 Investment managem
Slide 18: Collaboration with American Century Investments
Collaboration with American Century Investments Seek benefits of collaboration through complementary client franchises and product lines Client Japan US franchises AEJ EMEA LatAm, etc. Australia Middle East Asia, etc Japan equities Asian equities Global equities US equities Product lines High yield
Slide 19: In closing
In closing
Slide 20: Disclaimer
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 sel
Slide 21: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com