Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2010/11 Earnings Presentation
44 slides from Nomura's earnings presentation, Nov 8, 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 For the month of November 2010 NOMURA HOLDINGS, INC. (Translation of reg
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 2011
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: November 8, 2010 By: /s/ Shinji Iwai Shinji Iwai Senior M
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter, year ending March 2011
Table of Contents Consolidated Second Nomura quarter, Holdings, Results year Inc. ending ofOctober Operations March 2010 2011 (US GAAP)
Slide 5: Important notice
Table of Contents Nothing securities or No accepted This be nature, liquidity 2The sales 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 un
Slide 6: Presentation Outline
Table of Contents Executive Presentation Outline Overview Breakdown Segment Non-interest Robust Basel FY2010/11 Global US Investment Recent Financial Value Consolidated Main Adjustment Retail Asset Wholesale 3Number business revenue III Management at (p. related Markets performance financial risk of
Slide 7: Executive Summary
Table of Contents Executive Second -54.7% Business Wholesale Global Investment Despite Net Maintained Tier Expected First 4(1) revenue 1half ratio Markets QoQ). quarter new segment net dividend Tier Summary Net net Banking of ain asset revenue robust 16.5% 1revenue income Asset net net common income
Slide 8: Overview of Second Quarter Results
Table of Contents Overview Second Results First Non-interest Income Net ROE FY2010/11 Q2 Y 0.3 (billions segment Business Own income CVA Unrealized on Others securities Pretax (1) 5(2) 275.6bn 254.0bn 21.6bn 1.1bn investment Net Calculated (%) %revenue income1 half 5.6 credit 2Q2 income 3.4 income q
Slide 9: Breakdown of Segment Net Revenue
Table of Contents Breakdown QoQ FY2010/11 (%) Retail Asset Wholesale Segment Other1 Unrealized investments securities Net purposes Q2 Non-Japan Japan 6(1) net revenue (%) YoY Management 57% Y87.8bn revenue Y10.1bn (%) Total held YoY “Other” Y163.4bn 43% gain H1 Q2 of in Y275.6bn net Y270.5bn for equ
Slide 10: Retail: Key performance points
Table of Contents (billions Non-interest (trillions 71.0 68.9 FY2009/10 2Q Key Net Income Tough Reported Client Retail Accounts Sales Nomura Other IPOs 7Foreign 3Q revenue revenue: performance points 73.5 68.4 and of sales client franchise environment 4Q before bond main US Global of of net public 6
Slide 11: Retail: Continued inflow of new funds
Table of Contents Retail: Although Nikkei 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 10.3 Net 600 700 686 800 100 200 300 400 410 1H Total Stocks 0F 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2Q Foreign (billions 3,550 Sep 8(1) Y2009/10 8,000 2H 3Q inflow 441 2009 1Q sales 3,500 Prod
Slide 12: Asset Management
Table of Contents Asset (billions Non-interest (trillions 922.9 performance Management FY2009/10 2Q Key Net Income Assets Continued Investment New 3Q of of23.1 revenue points listing under 4Q yen) yen) before 1Qand 16.5 expenses 23.4 strongincome 17.2 indicator advisory FY2010/11 in Y19.3bn 22.2 man
Slide 13: Asset Management: Investment trusts and mandates
Table of Contents Investment Share Others, Management Asset Nomura #2, 28.0% #9, #8, #7, 7.1% #6, Net (billions 600 555 0-800 200 209 400 -400 -176 FY2009/10 -600 2Q Growth New Won Offering Increasing Enhanced Launched NEXT Total (1) (3) 10 200UCITS=Undertakings Nomura Source: 3Q 14.3% 2.7% 3.0% 3.2
Slide 14: Wholesale
Table of Contents Wholesale (billions FY2019/10 Non-interest taxes Key Net Income Revenues Investment Build-out Market North (bps) 1200 1000 190 American 800 600 200 90 400 110 Mar-09 Share (trillions 15.4 17.4 4.3 2.6 7.6 9.9 FY2009/10 2Q Global #M&A 5,000 4,000 6.0 3,000 5.0 2,000 1,000 02.0 1.0 2
Slide 15: Wholesale: Global Markets
Table of Contents Wholesale: (billions 2Q Others Non-interest Client taxes 145 155 117 FY2009/10 100 1Q Key Net Income Fixed Market revenues since Products, Revenues Equities Weak fully large convertible — business across 12 Growing Revenues 3Q 2Q revenue revenue: 123 144 performance points recovere
Slide 16: Wholesale: Investment Banking
Table of Contents Wholesale: (billions 2Q Allocation divisions Other Net Non-interest Income income League 2010 Jan-Sep Global Key Revenue(gross)1of Loss 1Investment In Japan, EMEA, 3Q Note: (1) 13 (3) revenues revenue performance points before AEJ, the 2009 3.9 As4Q ECM M&A tables2 taxes (loss) Jan
Slide 17: Segment Results: Other
Table of Contents Segment Full Includes Quarter to Holdings 040 -40 -27.3 -80 -120 -39.9 -200 -60 -160 -240 Q2 Results ”Other” FY2010.3 FY2006.3 2Q Net hedging Realized securities Equity Corporate Others1 Income 1. Note: current Note transactions been 14 0Businesses Nomura 17.8 loss 3Q -20.9 -65.4 g
Slide 18: Non-interest Expenses
Table of Contents Non-interest Full (billions Quarter 1,092.9 1,000 272.7 expenses depreciation 400 0brokerage FY2010.3 FY2006.3 2Q Compensation Commissions Information communications Other Total Q2 IT-related Occupancy Business Despite 150 non-interest 3Q year 607.2 300 852.2 94.1 4Q 1,045.6 an of
Slide 19: Robust Capital and Financial Position
Table of Contents Robust Capital Financial (Preliminary) Shareholders’ Y2.1trn RWA approx. Liquidity Total Comparison Tier 16.5%16.4% Nomura History Gross 10.0 12.0 14.0 6.0 8.0 Level (billions Net 2,000 1,500 44% 01,000 500 FY2010.3 2Q (1) (2) (3) Note: 160%As Tier Preliminary 3Q 1Q leverage Level
Slide 20: Basel III Implications and Outlook
Table of Contents Basel Implications Outlook Estimates earnings We Liquidity Nomura’s (billions Sep Net analyst Income taxes RWA Tier Risk-weighted Reduce The Figures 17 expect revenue 2010 outlook 1analyst 11,757 III common Common forecast before investment assets for of based regulations (actual)
Slide 21: FY2010/11 Wholesale Key Initiatives
Table of Contents FY2010/11 Wholesale Grow Gain Establish Progress Page 18 market-leading 19 20 21 22 client strong FY2010/11 key franchise initiatives US platform position focus (from that in key complements May product 2010areas investor global franchise presentation) Expand M&A business globally
Slide 22: Global Markets: Client franchise growth
Table of Contents Global On-boarding 135 189 265 192 Indexed, FY2009/10 100 179 242 294 3Q Fixed US Asia EMEA Japan Ranked Equities #8 Interest (Euromoney), #3 #7 #5 Market #1 #2 #12 (1) (2) 19 All-American All-Japan All-Europe All-China All-Asia Yen globally JGB EUR Sponsor-led Fixed in CB Number S
Slide 23: US Business Expansion
Table of Contents US Accumulated Fixed Investment Equities Total FY2009/10 Growth Continue Fully Number Grow Established Built Ramped Full Launch Launched Growing Appointed Build Focus Partnership Active (Indexed, 100 1,160 1,296 1,455 (1) (2) 20 GSE business: 130 US infrastructure headcount launche
Slide 24: Investment Banking: Notable Deals
Table of Contents Investment Notable EMEA Grifols (Spain Carlsberg RMB GDF JFE Prudential Santander—BZ €3.1bn CIC Sompo US$ NTT Financial 21 Steel –Penn 4.0bn 312m –Dimension Suez 2.4bn –US) AEJ Sep –Talecris Japan Deals Advisor Financial —JSW –Chongqing –AIG –Intl Jun West Banking: 2010 Japan Jun –
Slide 25: Investment Banking: Expanding Franchise
Table of Contents Investment Global Expand Focused Strengthen Extend Increased Leveraged (Acquisition Increase Grifols Permira #1 DCM Expansion UK Republic International China Legrand (1) 22 EMEA Sponsor-led Gilts /Unicom Markets ECM franchise /platform business /in €568m client Talecris of £8bn Bir
Slide 26: Recent Business Momentum
Table of Contents Recent Sales Retail Enhance Offer Asset Q2 Funds *Under Nomura Increase LIC Global Wholesale Fixed Volumes Aiming businesses. and Q3 Equities Full October integrating Investment Build Tokyo ECM AIA Y419.5bn Barclays HK$138.3bn DJO US$4.0bn KFW €1.0bn Carlsberg DCM $1.0bn US$300m Ce
Slide 27: Financial Supplement
Table of Contents Financial Supplement
Slide 28: Consolidated Balance Sheets
Table of Contents Consolidated (billions Mar. 2010 Assets Cash Payables Loans Collateralized Long-term Trading private Other Noncontrolling Total 1. 25 Including 31, 2010 and Nomura assets assets and Liabilities equity liabilities assets of Sep. and cash receivables (Decrease) borrowings yen) 32,230
Slide 29: Value at Risk
Table of Contents Value31, Definition 1-day Mar. Equity 26 time at6.0 risk Mar. From 4.7 horizon 31, 4.2April Mar. 3.8 for2.6 1, outstanding 31,2010, 2.0 Mar. 2.2 to31, Interest September portfolio Mar. 31, rateMinimum: Jun. 30, 3.32010 3.7 30, 4.7 Sep. (billions 8.6 6.7 30, Inter-product 4.4 (billi
Slide 30: Consolidated Financial Highlights
Table of Contents Consolidated Full 400 175.8 -200 -67.8 3.7% -400 -600 -800 -708.2 FY2006.3 Income Net 304.3 Holdings, Total ROE Basic-Net 159.02 shareholders *Shareholders’ 27 0% Note:revenue income 15.5% year -10% -20% -30% -40% (%) (%)1 Nomura (billions Quarter 40 30 7% 20 18.4 10.2 10 2.3 02% 2
Slide 31: Consolidated Results
Table of Contents Consolidated FY2010.3 (billions 2Q Commissions Revenue Fees Asset Gain Private Other Total Interest Non-interest before Income (“NHI”) Net Note: 28 3Q gain revenue income from (loss) revenue Certain management 58.8 income 4Q equity and expense from (loss) shareholders of oninvestme
Slide 32: Main Revenue Items
Table of Contents Mainportfolio FY2010.3 FY2006.3 (billions Stock Commissions Other Equity Fees Investment Banking Asset Management and service Total 29 from 356.3 108.8 102.7 revenue Asset brokerage 23.8 underwriting fees of Other Bond FY2011.3 FY2007.3 38.6 yen) M&A 337.5 99.3 146.0 management Adm
Slide 33: Adjustment of Segment Results
Table of Contents Adjustment (billions Asset 3Retail Wholesale Segment Other Unrealized US FY2010.3 FY2006.3 2Q 197.2 23.8 264.7 485.7 -33.1 452.6 59.3 -59.9 452.0 99.4 551.4 1. Note: adjustments 2. 3. current 4. reclassifications 30 Business The Gain Certain In 3Q GAAP 39.4 -38.2 ———————— January 2
Slide 34: Retail Related Data (1)
Table of Contents (billions FY2010.3 FY2006.3 2Q Commissions Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales Retail 1. 31 Nomura 3Q interest revenue from credit of investment investment related foreign 4Q before investment JGBs ofdistribution investment FY
Slide 35: Retail: Commissions for distribution of investment trusts
Table of Contents Retail Full (billions 180 150 120 50 90 investment 30 20 060 FY2010.3 FY2006.3 2Q Stock Commissions 1. 32 0Nomura 10 3Q 70 60 year brokerage related 4Qof Quarter FY2011.3 FY2007.3 1Q Securities trusts yen) data for 2Q(billions commissions 30 distribution (2)FY2008.3 of yen) of and
Slide 36: Retail: Client assets
Table of Contents Retail Full (trillions Quarter Other 100 80 Bond 68.1 0M 20 Equities funds 1. 2. 3. 33 ar. Euroyen Includes 72.2 year 31, investment 2.3 85.2 related client 73.5 49.3 2006 of 2.0 Overseas bonds CBs annuity yen) assets 68.4 1.7 48.5 data Mar. and 1.4 trusts have (3) 37.2 insurance.
Slide 37: Retail: Net asset inflow
Table of Contents Retail Full 4,868 5,975 8,000 F 4,000 (billions 6,000 0-2,003 458 1,000 1,289 2,000 FY2010.3 -1,000 2Q 1. 34 213 Y2006.3 Retail 3Q year 5,279 5,000 1,879 related client 4Qof client Quarter FY2007.3 FY2011.3 1Q yen) 4,581 4,000 assets: data 2Q assets 4,928 3,000 (4) Net FY2008.3 exc
Slide 38: Retail: Accounts and online trading
Table of Contents Retail Number Mar. Accounts (thousands) Equity Nomura Full FY2010.3 FY2006.3 2Q New IT No. Transaction 1. 35 IT share1 3Q of year 31, individual share related orders holding 4Qof Home 2006 Quarter with FY2011.3 FY2007.3 1Q is accounts value the 55% data Mar. 2Q balance Trade accoun
Slide 39: Asset Management Related Data
Table of Contents Asset FY2010.3 FY2006.3 (billions Net Non-interest Income The presentation. reported Total Full (trillions 25 25.8 27.0 30 35 523.1 10 15 20 20.2 36 0M 23.4 Note:revenue defined year 22.2 assets In Management before 23.3 Deutschland 31, ar.2006, 31, January amounts of of Quarter To
Slide 40: Asset Management: Nomura Asset Management data
Table of Contents Asset Nomura assets Full (trillions 30 25.9 25 21.0 advisory Nomura’s 5investment 37 0M Domestic 24.3 trusts 2006 Exclude Public year Market 22.0 Nomura Management Privately Net under Investment Domestic Overseas Total ar. asset 31,23.1 Asset 2007 21.020 15 of Quarter 21.2 share st
Slide 41: Wholesale Related Data
Table of Contents Wholesale Global Fixed Equities FY2010.3 (billions 2Q Allocation Investment Other Net Non-interest Income 38 3Q revenue -38.9 -69.9 Income 4Q Markets (Loss) 98.9 ofFY2011.3 1Q related to yen) Banking Banking(Gross) Banking(Net) -2.4 12.2 -163.6 -157.3 -6.4 expenses other 352.8 -217
Slide 42: Wholesale: Private Equity Exposure
Table of Contents Wholesale Private Full (billions Quarter 600 Asia 439.1 366.3 356.1 Europe 231.2 0M 100 98.7 200 Japan Terra Note: Nomura 39ar.543.4 year 400 31, Firma) Firma Amount 370.0 347.1 235.5 59.9 equity (excluding Phase4 of 2006 381.4 related 195.5 yen) 500 340.4 243.6 254.9 related Mar.
Slide 43: Headcount
Table of Contents Number Mar. Japan Europe Americas Asia-Pacific3 Total 1. 2. 3. Note: 40 Excludes Figures Includes 31, 14,932 Headcount (excluding (FA)2 1,515 of 2006 1,073 up employees Powai employees 1,948 16,854 to 1,791 778 Mar. March 1,322 FA)1 figures office 900 2,174 31, 1,956 18,026 1,063 1
Slide 44: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com