Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2010.3 Earnings Presentation
56 slides from Nomura's earnings presentation, Feb 9, 2010
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 February 2010 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), Third 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: February 9, 2010 By: /s/ Shinichiro Watanabe Shinichiro W
Slide 4: Consolidated Results of Operations (US GAAP), Third quarter FY March 2010
Table of Contents Consolidated Third Nomura February quarter, Holdings, 2010Results year Inc. ending of Operations March 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 Overview Wholesale Diversification Robust Level We Key Financial Third Segment Non-interest Retail Global Investment Merchant Asset Value Number Consolidated Adjustment Mainhave performance revenue quarter Management 3at business (p. related wholesale Markets f
Slide 7: Overview Highlights
Table of Contents Overview Highlights Profitable Both 1Q-3Q Made Retail In Booked Third Net 41. Net addition wholesale, revenue retail quarter further maintained focused income results credit of for and toY274.5bn third progress results Investment platform three our value attributable on wholesale s
Slide 8: Overview: Retail and Wholesale results
Table of Contents Overview Both Fiscal Retail 5(billions 34% 33% 7% 12% retail in year-to-date of Japan of and yen) third Wholesale wholesale (billions quarter net revenue of (Global results (Global yen) andMarkets Markets pretax income and and Investment Investment Banking) Banking) increased net r
Slide 9: Overview: Adjustments to pretax income
Table of Contents Overview Adjustments Third (billions Business Own Unrealized Others Nomura -16 6Pretaxcredit quarter income -13 -19 CB PO of segment of Nomura loss gain yen) &fee -8 -17 third to pretax CVA 77 conversion pretax on on (billions conversion (1Q-3Q) pretax quarter -4 +4 -18 -64 PO inco
Slide 10: Overview: Breakdown of third quarter results
Table of Contents Overview Breakdown (billions Retail LSE Assets No. Excellence Global Asset Investment 17.2 44.5 Merchant 1. 2. 3. 4. 5. 7Note: Share Source: 11.8 market All in Management client 104.3 under Markets Japan-related ofdata Banking of Thomson The London Dealogic investment in yen) Banki
Slide 11: Overview: Breakdown by business
Table of Contents Overview Breakdown Japan 10% Ratio EMEA (Investment Asia showing (billions 1Q FY2010.3 Set US 1. 2. 3. 4. 5. 8Note: Source: 2Q upin ex-Japan All of Net organization 3Q December revenues of strong data of revenue Thomson Tokyo London Singapore FinanceAsia yen) of Banking) third as M
Slide 12: Retail: Focus on consulting services
Table of Contents Focus Continued Total billions 4,000 Stock 700 3,000 600 3,500 400 2,500 500 1,500 300 2,000 051,000 FY2010. 1Q 9Nomura 00 0 2Q 0100 25purchases 15Stocks 20 10 200 sales on 3Q of Retail 3consulting yen to 1Q FY2010. and Number Bonds achieve 2Q (billions flagship number by3Qretail I
Slide 13: Asset Management
Table of Contents Asset Increased Winning #10,2.6% 20.8% Leading Award Nomura Launched Share Others, Global Regions Investor Investments Investment (trillions Overseas 1. 2. 3. 4. 10 Assets Source: Net Investment Management of of and expansion 25.6% Asset position Global types Europe, public of many
Slide 14: Investment Banking net revenue
Table of Contents Investment Third Fiscal Japan (billions 11 quarter Non-Japan year-to-date of yen) Banking net(billions revenue regional net revenue of doubled revenue yen) improving QoQ bothglobally in Japan and overseas.
Slide 15: Investment Banking deals
Table of Contents Investment EMEA1 Blackstone Blackstone/Lion UC $2,200,000,000 1st GDF 1.17% ¥65,000,000,000 Segro Acquisition £1.1bn Co-Bookrunner 1.92% ¥44,800,000,000 Anglo US$42,500,000,000 Givaudan Global TVN 10.75% €405,000,000 Kumho US$2,500,000,000 Maxis US$3.3 IPO Industrial 2.20% ¥26,200,
Slide 16: Investment Banking awards and deals
Table of Contents Investment 2009 KGI US$1.8 Deal $3.3 Loan Malaysia Nomura’s Asia-Pacific Achievement and Kirin SK Kirin’s Oriental US$ Best KKR’s 13 Telecom’s Investment billion Securities Investment Private M&A deal Deal Philippines Leveraged IPO Cross 3.3billion of Deal Holdings’ sale $1.8 US$1.
Slide 17: Investment Banking league tables
Table of Contents Investment Japan-related Proceeds FY2009.3 4Q Source: *Japan 2009 987654321Rank 10 15 Value 624,324 74,408 14Nomura Daiwa Shinko Morgan Goldman JPMorgan Citi Credit Bank UBS Lazard Deutsche Barclays Nomura 1QM&A Financial Market 2Q 3.6% equity of Thomson Suisse 30.1% 8.9% 0.2% (mil
Slide 18: Global Markets
Table of Contents Both Global 2009/4-6 .Note 2: Prepared No1:Competitors Global responsibility Markets Equities 2009/7-9 byEquities Nomura. net Global 2009/10-12 revenue (average) orand liability Fixed Global comparison Income based 2009/4-6 can Fixed be onaccepted Income companies 2009/7-9 performi
Slide 19: Global Markets: Liquidity and exchanges
Table of Contents Liquidity Exchanges Korean Tokyo Taiwan Hong India National Bombay BSE SGX, Australian Government Australia Bursa License Exchange Fixed 1. 16 Excludes license Primary Kong Singapore Income Malaysia Stock Stock obtained Stock AOFM businesses with Securities with Instinet Exchange o
Slide 20: Global Markets: Asia and Europe
Table of Contents Global #1 Asia 2.5x EAFE1 Recent Share Ranked Average EMEA Asia5 Net (ex-Japan) FY2008.3 2.3x 1. 2. 3. 4. 5. April Volume EAFE Source: on revenues LSE ofMarkets EAFE1 13x 6x 2x 19x Equities Fixed in to #client Europe, 1.6x (ex-Japan) 3Q LSE. FinanceAsia daily uplift top December (J
Slide 21: Global Markets: business build-out
Table of Contents Following Global Cash Rates 2.8x FX 2.1x Equity 2.3x Securitized 2.2x CMO Credit 8.8x 1. 4.8x 2. 3. 4. Note: 18 Average Source: Quarterly 2 equities Volume 2underwriting 2derivatives Markets Equities Bloomberg on daily products revenue, (EMEA, from uplift Americas Global trade trad
Slide 22: Global wholesale revenue share
Table of Contents Global Despite Revenue Net (billion *Wholesale Note: 19Data revenue No are wholesale of sluggish share responsibility USD) from business andincreasing each share* % revenue business share revenue company’s ordue among liability market share* to decreased latest global share can top
Slide 23: Wholesale net revenue share
Table of Contents Wholesale Investment Global 1. 2.Wholesale Note: 20 DataNo Equities Fixed areresponsibility net from Banking net Income revenue net revenue each revenue net net company’s share1, or revenue data revenue liability share1 based 2 share1 latest share1 can on be sum quarterly accepted
Slide 24: Diversification of funding
Table of Contents Diversification Accelerating Highlights In Increasing Issued Excellent Currency Others 12% 6% 30% 11% 2Regional 100% Japan Outstanding 19% Apr-Dec 43% Unsecured €1 5.125% Sole 21 Nomura December current billion Bookrunner Non-Japan 90% fixed JPY Senior 2009 breakdown breakdown perf
Slide 25: Robust capital and liquidity
Table of Contents Robust Capital Financial (billions Total Shareholders’ 14.1x Net (net)1 Level Liquidity Gross Tier = 17.8% Comparison Notch AA DB 1. 2. 3. 4. 22 Tier Tier Preliminary Competitor S&P AA- UBS leverage 1assets Total 3leverage Y1.1trn capital 1gap 17.7% 1financial ratings ratio assets
Slide 26: Level 3 assets
Table of Contents Highlights Declined Level Net (billions 1. 2. 23 Preliminary Net Level 3basis assets of by 3Breakdown yen) after assets assets2 over /(before Tier netting Y170bn has 1 capital review) been ofoff Level compared decreasing derivative expected 3 assets to assets to prior steadily. (as
Slide 27: Balance sheet composition
Table of Contents We Majority Balance FY2010. Billions Cash Collateral 12.6% Highly Trading •Less 24 Increased Remain Cautiously Currently have liquid and Total liquid assets of sheet Sheet cleaned of 3cash mostly securities yen 2Q assets from 3% assets assets managed assets has composition equivale
Slide 28: Key performance indicators: Retail and Asset Management
Table of Contents Key Retail FY2010. 59.3 67.2 68.9 71.0 Share 3.2% 9.0% 8.2% Asset Assets (trillions 22.9 20.2 22.2 Global 2.2% Share1 3.3% FY2009. 4Q 1: Note: 25 Data 1Q performance 23.1 7.7% 3.7% 2.4% No Management 1client under 2Q Equities Fixed are of 3responsibility 3Q FY2010. from yen) assets
Slide 29: Key performance indicators: Banking and Merchant Banking
Table of Contents Key Investment Rank1 #10 #9 #13 FY2009.3 Merchant Business Return 3.0% FY2009. -58.4 2.2% Cost (billions PE 100 NPE 20.5 38.0 4Q Target 1. 2. 3. 26 Source: Return PE=Personnel 41.5 1Q #7 #15 performance efficiencies FY2009. 7.0% PE Global 2Q on #13 46% #16 of 3exposure on Banking N
Slide 30: Financial Supplement
Table of Contents Financial Supplement
Slide 31: Consolidated financial highlights
Table of Contents Consolidated Full 400 200 8.3% -800 -600 (billions Quarter 100 11.4 027.7 FY2005.3 -400 -300 -215.8 -200 Income Net 94.7 Total ROE 48.80 FY2009.3 3Q -49.7 -399.6 -342.9 -1,419.0 1. Note: 28 -0% 94.7 FY2010.3 3.0% 4Q revenue income 15.5% 5.2% 3.0% year 10.2 304.3 -708.2 (%)1 Nomura
Slide 32: Consolidated balance sheet
Table of Contents Consolidated Cash Assets 1Trading Other (billions Mar. Short-term Liabilities Equity Noncontrolling Total 1. Note: 29 11,673 Including 31, and assets Nomura liabilities Non-controlling assets assets of 2009 13,936 cash borrowings yen) 24,838 securities 1,687 balance shareholders’ D
Slide 33: Third quarter business segment results
Table of Contents Third Net 350 18.7 20.9 3.9 200 22.7 9.4 69.7 -37.1 -35.0 Income -250 (billions 21.7 5.1 100 1.3 4.5 50 0-388.1 26.4 -9.7 -150 -100 -41.3 -300 Retail: Reference Global Investment Merchant Segment Adjustment Asset Other FY2009.3 3Q -38.2 Note1: current Note2: 30-1.1 2.3 95.4 62.3 4Q
Slide 34: Retail business performance
Table of Contents 120 80 60 40 2.3 -20 FY2009.3 3Q Full (billions 500 304.4 400 402.0 200 197.2 300 100 122.3 0F 18.2 Business Third Growing 74,000 Sales Investment Newly Nomura DWS/RREEF Quarter Total and Net Reference Retail Number 31 20 Y2005.3 69.7 35.2 27.9 4Q -5.5 investment revenue 104.3 95.4
Slide 35: Global Markets business performance
Table of Contents 187.1 100 -130.8 -300 3Q Full (billions 400 371.1 200 0-60.2 FY2005.3 -600 -574.6 -400 Business Third Steady Flow Global Booked Revenues Quarter Set Nomura Monthly Net Reference Value 32 1004Q 200up revenue 62.3 290.0 95.6 year 58.8 -295.5 -157.3 product quarter 163.9 atfixed -200
Slide 36: Investment Banking business performance
Table of Contents Investment Quarter 50 40 20 10 -5.4 -30 -50 3Q Full (billions 99.7 120 90 75.4 60 51.5 0-63.5 30 22.8 29.2 -60 FY2005.3 Business Third Returned Europe Increase Major Equity Nomura IPO: CB: Net Reference League 33 3044.4 44.5 22.7 16.3 0 83.1 4Q -40 -41.3 -57.4 revenue -9.7 Tata yea
Slide 37: Merchant Banking business performance
Table of Contents Merchant Quarter 1.8 3Q Third Virtually Increased Full (billions 80 40 60 0-20 -20 Net Reference Business -80 FY2005.3 -100 3.0 -1.1 68.2 55.4 7.3 4Q 3.9 -40 -69.9 revenue year quarter -0.9 1Q -60 65.0 52.8 of unchanged performance exposure: -85.3 value Banking FY2006.3 1.3 2Q yen)
Slide 38: Asset Management business performance
Table of Contents Asset 30 10.8 16.5 -10 0.5 -10 3Q Full (billions 88.1 100 80 60 59.8 39.4 40 20 13.0 0F Business Third Outstanding Banks, Japan Y1.165trn Quarter Nomura Launched Awarded Winning Net Reference Assets Investment 1. Note: 35 presentation. 2.1 Y2005.3 Excludes 18.7 5.1 64.1 47.6 23.8 7
Slide 39: Other segment business performance
Table of Contents Segment Income Full (billions 60 40 20 017.8 -20 -20.9 -40 -64.6 -60 Business –-80 FY2009.3 3Q Net -9.7 7.0 -46.7 JAFCO 1. Note: presentation. 36Third 0Businesses Booked 60 40 8.5 4Q 8.4 -20 -27.3 gain -64.8 year -22.9 -65.9 -22.4 The Net to 20 1Q 18.1 quarter (loss) impairment Nom
Slide 40: Non-interest expenses
Table of Contents Non-interest Other Occupancy Information Commissions Full (billions 1,200 607.2 400 –Business FY2009.3 FY2006.3 3Q Compensation 22.9 2.6% Number Reference 37Third Despite 4Q300 year 5.6% Other 1,000 687.9 1Q quarter 200 of development Performance Quarter increased FY2010.3 FY2007.3
Slide 41: Retail related data (1)
Table of Contents Retail (billions FY2005.3 3Q Commissions trust expenses Domestic 1,595.4 Accumulated Other foreign 1. 38 Nomura 4Qadministration related 1Q currency 1,602.7 of 223.2 distribution FY2006.3 2Q Securities. yen) value data 174.0 3Q 249.3 0.5% FY2009.3 bond (1) of fees 269.4 FY2007.3 27
Slide 42: Retail related data (2)
Table of Contents Retail Full (billions 180 50 40 30 20 060 FY2009.3 FY2005.3 3Q Stock Commissions 1. 39 0Nomura 150 120 90 10 4Q 70 year 30 brokerage related 1Qof Quarter FY2010.3 FY2006.3 2Q Securities yen) data for 3Q(billions commissions distribution (2)FY2007.3 of yen) of and 103.0 FY2008.3 inv
Slide 43: Retail related data (3): client assets
Table of Contents Retail Other Full (trillions 80 80.5 85.2 100 61.2 67.2 60 Mar. Equities Overseas 1. 2. 3. 4. 40 Domestic Euroyen Includes 72.2 40year 59.3 31, 20 related client 68.9 33.5 2005 of 0Quarter mutual bonds CBs annuity yen) Client assets1 71.0 49.3 data Mar. and funds have (3) 48.5 Asse
Slide 44: Retail related data (4): net asset inflow
Table of Contents Retail Full (billions 4,868 6,000 5,975 6,749 8,000 2,003 4,000 FY2009.3 3Q 1. 41 Retail 4Qyear 4,928 1,879 related client 1Qof client Quarter FY2010.3 2Q yen) 4,581 2,000 assets: data 3Q assets 1,610 (4) Net FY2005.3 exclude asset 1,441inflow1 portion 1,013 FY2006.3 0fromFY2007.3
Slide 45: Retail related data (5)
Table of Contents Retail Number Mar. (thousands) Equity Nomura Full FY2009.3 3Q New 1. 42 IT4Q year 31, individual share related holding 1Q of Home 2005 Quarter FY2010.3 2Q is accounts Accounts the data Mar. 3Q Trade accounts accounts percentage (5) 31, /FY2005.3 (online IT with 2006 1,680 share1 (t
Slide 46: Global Markets related data
Table of Contents FY2009.3 FY2005.3 Global Other Net Non-interest Income Note: composition. Credit Dec. A(1) Sep. Monoline Notional AA(1) 1. 43 Based revenue 30, 31, $210 In 33.1 derivative $211 Markets Fixed Equities before April 2009 2009 on Gross insurer-related insurers FY2010.3 FY2006.3 $53 28.
Slide 47: Investment Banking related data
Table of Contents Investment FY2009.3 FY2005.3 Net Note: League Equity 21Jan. revenue 1,In2009–Dec. capital tables April FY2010.3 FY2006.3 Nomura Banking 75.4 markets Daiwa2004, 99.7 31, 23,900 related Fixed FY2007.3 2009 99.2 bookrunner Securities 37.2% Income, 83.1 Rank data SMBCFY2008.3 63.5 Book
Slide 48: Merchant Banking related data
Table of Contents Merchant FY2009.3 FY2005.3 Net Non-interest Income Business Full (billions 600 381.4 400 300 254.9 200 Mar. Japan Europe Asia Sub Terra Note: Nomura 45 revenue 543.4 366.3 260.2 132.1 Total year -31, Firma Amount 382.1 256.0 108.4 - (excluding before -Phase4 of 2005 exposure -Quart
Slide 49: Asset Management related data (1)
Table of Contents Asset FY2009.3 (billions 3Q Net Non-interest Income Management Total Full (trillions 35 25 20.2 17.9 Mar. Note: Research 46 30 23.1 4Q revenue year 20 15 31, assets Total In Management 27.0 1Q before 22.9 10 January of 2005 of Quarter and FY2010.3 2Q 25.8 5 yen) assets yen) under 4
Slide 50: Asset Management related data (2)
Table of Contents Asset Full 25.9 Market Nomura’s Source: Mar. Investment Domestic Overseas Total Nomura (trillions Exclude Public Privately Net 47 asset year 25 31, 16.0 Management stock bond 28.9 13.5 24.3 Investment Asset ETF 2005 of Quarter placed inflow investment public investment share 21.0 t
Slide 51: Value at Risk
Table of Contents Value4.1 99% Definition 1-day Inter-product From Maximum: Minimum: Average: Mar. Equity Interest Foreign Sub-total Diversification VaR 48 confidence 31, April time at3.0 rate exchange 7.0 risk 2005 12.7 6.5 6.0 9.9 horizon 15.2 1, 6.2 2.8 10.7 price 2009, Mar. 4.7 benefit 10.1 3.3
Slide 52: Number of employees
Table of Contents Number Mar. Japan Europe Americas Asia Total 1. 2. 3. Note: 49 Excludes Figures Includes ex-Japan3 31, 14,390 Headcount (excluding (FA)2 1,535 of 2005 1,026 up employees Powai employees 1,875 14,932 to 1,515 Mar. 718 March 1,073 FA)1 figures office 1,948 31, 778 1,791 16,854 1,322
Slide 53: Consolidated income statement data
Table of Contents Consolidated FY2009.3 3Q Commissions Revenue Fees Asset Gain Private Other Total Interest Non-interest Income (“NHI”) Net Note: 50 4Q gain revenue income from (loss) revenue Certain management 32.3 1Q equity and expense from (loss) shareholders oninvestment FY2010.3 2Q 58.8 on (los
Slide 54: Segment information reconciliation
Table of Contents Adjustment FY2009.3 (billions Retail Global Investment Merchant 5Asset Other Segment Unrealized 8.4 Effect 8.9 US Income Total 1. Note: segment 2. 3. 4. 51 presentation. Business The Gain Certain In 59.3 -59.9 GAAP January 204.8 Management 7.0 81.2 of defined Markets (loss) from -3
Slide 55: Main revenue items
Table of Contents Main Fees FY2009.3 Stock Commissions Bond M&A Other Asset Administration Custodial Bonds Equity Merchant Net Total 1. 52 Includes gain interest from 78.5 276.0 revenue underwriting Management management brokerage 24.1 0.1 /and underwriting 76.8 financial on 0.1 banking fees Investm
Slide 56: Nomura Holdings, Inc. www.nomura.com
Table of Contents Nomura Holdings, Inc. www.nomura.com