Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2022/23 Earnings Presentation
34 slides from Nomura's earnings presentation, Nov 8, 2022
Slide 1: Consolidated Results of Operations, Second quarter, year ending March 2023
Connecting Markets East & West © Nomura (US GAAP) November 2022 Consolidated Results of Operations Second quarter, year ending March 2023 Nomura Holdings, Inc.
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2-3) Overview of results (p. 4) Business segment results (p. 5) Retail (p. 6-8) Investment Management (p. 9-10) Wholesale (p. 11-13) Non-interest expenses (p. 14) Robust financial position (p. 15) Consolidated balance sheet (p. 17) Valu
Slide 3: Executive summary (1/2)
FY2022/23 1H FY2021/22 1H YoY Net revenue Y617.0bn Y672.1bn -8% Income (loss) before income taxes Y43.2bn Y97.0bn -55% Net income (loss)1 Y18.5bn Y51.7bn -64% EPS2 Y5.91 Y16.25 -64% ROE3 1.2% 3.8% FY2022/23 1H highlights Executive summary (1/2) 1. Net income (loss) attributable to Nomura Holdings sh
Slide 4: Executive summary (2/2)
35.6 57.0 79.2 33.5 18.5 31.2 FY2022/23 2Q highlights Executive summary (2/2) Income before income taxes and net income1 Groupwide Three segment income (loss) before income taxes (billions of yen) FY2021/22 FY2022/23 1Q 2Q 3Q 4Q 1Q 2Q 1. Net income (loss) attributable to Nomura Holdings shareholders
Slide 5: Overview of results
Highlights Overview of results 1. Net income (loss) attributable to Nomura Holdings shareholders. 2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 4 (billions o
Slide 6: Business segment results
Net revenue and income (loss) before income taxes Business segment results 5 Gain related to economic hedging (Y100m) Loss on changes to own and counterparty credit spreads related to Derivatives (Y2.6bn) Recognized fines by SEC/CFTC related to use of and record keeping on unauthorized communication
Slide 7: Retail: Net revenue and income before income taxes
Net revenue: Y72.5bn (+2% QoQ; -15% YoY) Income before income taxes: Y5.5bn (+12% QoQ; -68% YoY) Flow revenue, etc. slowed as investors remained on the sidelines amid ongoing market uncertainty, while recurring revenue remained resilient driven by efforts to grow client assets Recurring revenue—Ongo
Slide 8: Retail: Total sales edged down, but inflows into Japan stocks and insurance
Retail: Total sales edged down, but inflows into Japan stocks and insurance 7 Total sales1 (billions of yen) FY2021/22 FY2022/23 2Q 3Q 4Q 1Q 2Q Stocks 2,610.7 2,720.1 2,415.3 2,047.9 2,228.8 Bonds 1,695.8 1,991.1 1,971.9 1,987.4 1,811.8 Investment trusts 497.0 549.3 331.1 411.1 345.6 Discretionary I
Slide 9: Retail: KPI summary
850 1,140 1,356 1,505 809 1,075 400 600 800 1,000 1,200 1,400 1,600 FY2021/22 FY2022/23 Retail: KPI summary 1. Total excludes investment trust distributions, and investment trust net inflows in level fee accounts. 2. Figures from before FY2022/23 1Q have been reclassified following a revision to the
Slide 10: Investment Management
34.3 40.1 10.1 7.6 26.2 -40.0 -20.0 0.0 20.0 40.0 60.0 Investment gain/loss Business revenue Net revenue: Y26.2bn (3.5x QoQ; -24% YoY) Income before income taxes: Y5.6bn (-63% YoY) Net revenue and income before income taxes both rebounded on an improvement in investment gain/loss Business revenue Ne
Slide 11: Investment Management: Inflows into investment trusts and institutional investor business
267 250 372 478 137 772 110 -180 -928 89 1,039 360 193 -450 226 -1,000 -500 0 500 1,000 1,500 Investment advisory and international businesses, etc. Investment trust business Investment Management: Inflows into investment trusts and institutional investor business Assets under management (net)1 Net
Slide 12: Wholesale
Net revenue: Y205.5bn (+3% QoQ; +19% YoY) Income before income taxes: Y20.2bn (-20% QoQ; -19% YoY) Revenues up QoQ and YoY—Global Markets revenues remaining roughly unchanged QoQ due partly to impact of yen depreciation; Fixed Income revenue growth was driven by Macro Products, while Equities slowed
Slide 13: Wholesale: Global Markets
137.2 163.8 158.2 175.3 177.5 0.0 50.0 100.0 150.0 200.0 Wholesale: Global Markets Net revenue Key points 12 FY2021/22 FY2022/23 QoQ YoY 2Q 3Q 4Q 1Q 2Q Fixed Income 70.7 88.0 80.1 112.6 115.6 3% 63% Equities 66.5 75.8 78.1 62.6 61.9 -1% -7% Global Markets 137.2 163.8 158.2 175.3 177.5 1% 29% (billio
Slide 14: Wholesale: Investment Banking
Wholesale: Investment Banking 1. ECM, DCM, ALF, businesses run together with Global Markets, other revenue not attributed to a particular product. 2. Source: Refinitiv Jan – Sep 2022. 3. Japan’s first accelerated share repurchase. 13 Net revenue Key points QoQ +18% YoY -21% FY2021/22 FY2022/23 2Q 3Q
Slide 15: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen) 14 Non-interest expenses: Y286.5bn (-0.3% YoY) – Compensation and benefits (+5% QoQ) Compensation and benefits increased due to yen depreciation Bonuses increased slightly due to a lag in timing of recognition and
Slide 16: Robust financial position
8.43 0.30 8.73 5.84 0.06 5.89 2.63 -0.06 2.57 16.89 17.19 0.00 5.00 10.00 15.00 20.00 Jun 2022 Sep 2022 Robust financial position 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. September
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Mar 31, 2022 Sep 30, 2022 Increase (Decrease) Mar 31, 2022 Sep 30, 2022 Increase (Decrease) Total cash and cash deposits 4,064 4,406 343 Short-term borrowings 1,050 1,274 224 Total payables and deposits 4,920 5,872 952 Total loans and receivables 5,001 5,965 964 Total collateralized financing 14,538
Slide 19: Value at risk
FY2020/21 FY2021/22 Mar Mar Sep Dec Mar Jun Sep Equity 22.8 1.4 2.8 2.1 1.4 1.7 2.4 Interest rate 3.3 2.3 2.1 2.3 2.3 4.8 3.7 Foreign exchange 3.6 0.9 0.8 1.6 0.9 1.8 1.6 Sub-total 29.7 4.6 5.6 6.0 4.6 8.4 7.7 -6.2 -1.9 -1.8 -1.9 -1.9 -3.4 -2.8 23.5 2.7 3.8 4.1 2.7 5.0 4.9 FY2021/22 FY2022/23 VaR Di
Slide 20: Consolidated financial highlights
3.2 60.3 31.0 1.7 16.8 3.8% 5.4% 5.1% 0.2% 1.2% 0% 2% 4% 6% 8% 0 50 100 150 200 153.1 143.0 5.7% 5.1% 0% 2% 4% 6% 8% 0 50 100 150 200 Net income (loss) attributable to Nomura Holdings, Inc. (“NHI”) shareholders ROE (%) 2Q 3Q 4Q 1Q 2Q Net revenue 1,401.9 1,363.9 318.9 351.0 340.8 299.0 318.0 Income (
Slide 21: Consolidated income
2Q 3Q 4Q 1Q 2Q Commissions 376.9 332.3 91.6 82.6 75.2 70.4 68.2 Fees from investment banking 108.7 149.6 33.9 46.0 34.0 27.3 24.2 Asset management and portfolio service fees 230.0 270.0 67.2 69.9 68.9 68.3 69.0 Net gain on trading 310.0 368.8 91.1 106.8 118.9 141.9 160.9 Gain (loss) on private equit
Slide 22: Main revenue items
2Q 3Q 4Q 1Q 2Q Stock brokerage commissions 262.3 236.4 67.7 57.3 53.1 48.4 48.5 Other brokerage commissions 14.3 18.0 4.0 4.8 5.5 4.8 4.7 Commissions for distribution of investment trusts 68.8 43.7 11.2 11.6 6.5 7.5 6.4 Other 31.6 34.3 8.8 8.9 10.1 9.7 8.6 Total 376.9 332.3 91.6 82.6 75.2 70.4 68.2
Slide 23: Consolidated results: Income (loss) before income taxes by segment and region
2Q 3Q 4Q 1Q 2Q 92.3 59.2 17.0 18.0 5.2 4.9 5.5 91.0 71.5 15.0 20.4 -8.8 -11.7 5.6 64.3 74.5 25.0 40.8 37.0 25.3 20.2 247.6 205.2 57.0 79.2 33.5 18.5 31.2 -28.5 15.8 -40.4 1.7 14.9 -3.9 2.1 219.1 221.0 16.6 80.9 48.4 14.6 33.3 11.5 5.6 1.9 -0.8 1.2 -2.8 -1.8 230.7 226.6 18.5 80.1 49.5 11.7 31.5 FY202
Slide 24: Segment Other
-40.4 1.7 14.9 -3.9 2.1 1 2 3 4 5 -28.5 15.8 -80 -40 0 40 80 1 2 Segment “Other” Income (loss) before income taxes1 Full year Quarter (billions of yen) 1. On April 1, 2021, Asset Management and Merchant Banking were dissolved and Investment Management newly established. As a result, historical figur
Slide 25: Retail related data (1)
2Q 3Q 4Q 1Q 2Q Commissions 187.7 138.5 35.6 36.5 27.8 26.0 26.2 0.7% -26.5% Of which, stock brokerage commission 92.6 67.4 17.6 17.6 14.4 11.8 12.2 3.5% -30.4% Of which, commissions for distribution of investment trusts 68.4 43.5 11.1 11.6 6.5 7.5 6.4 -14.6% -42.4% Sales credit 58.4 44.0 11.9 11.4 9
Slide 26: Retail related data (2)
FY2020/21 FY2021/22 Mar Mar Sep Dec Mar Jun Sep Equities 82.3 77.5 84.1 79.7 77.5 75.7 74.0 Foreign currency bonds 5.4 5.1 5.3 5.2 5.1 5.3 5.4 Domestic bonds1 12.7 12.6 12.6 12.6 12.6 12.7 12.9 Stock investment trusts 10.2 10.8 10.9 11.3 10.8 10.0 9.8 Bond investment trusts 8.0 7.5 7.8 7.8 7.5 7.4 7
Slide 27: Retail related data (3)
Retail related data (3) 1. Cash and securities inflows minus outflows, excluding regional financial institutions. 2. Incudes Corporate section (excluding regional financial institutions) and Japan Wealth Management Group. 3. Includes Retail channels, Net & Call, intermediary, salaried employee busin
Slide 28: Retail related data (4)
FY2020/21 FY2021/22 Mar Mar Sep Dec Mar Jun Sep Accounts with balance 5,329 5,348 5,342 5,362 5,348 5,354 5,359 Equity holding accounts 2,927 2,955 2,923 2,949 2,955 2,958 2,957 NISA accounts opened (accumulated)1 1,791 1,589 1,828 1,839 1,589 1,598 1,609 Online service accounts 4,895 5,067 5,004 5,
Slide 29: Investment Management related data (1)
2Q 3Q 4Q 1Q 2Q Business revenue 111.9 119.9 29.3 31.5 31.1 30.7 29.9 -2.5% 2.2% Investment gain/loss 51.2 28.1 5.1 8.6 -21.1 -23.1 -3.7 — Net revenue 163.2 148.0 34.3 40.1 10.1 7.6 26.2 3.5x -23.8% Non-interest expenses 72.1 76.5 19.3 19.8 18.9 19.3 20.6 6.9% 6.8% Income (loss) before income taxes 9
Slide 30: Investment Management related data (2)
2Q 3Q 4Q 1Q 2Q Investment trusts business 2,753 1,236 267 250 372 478 137 of which ETFs 2,241 683 -28 -15 383 323 -5 Investment advisory and international businesses -883 830 772 110 -180 -928 89 Total net asset inflow 1,870 2,066 1,039 360 193 -450 226 FY2021/22 FY2020/21 FY2021/22 FY2022/23 FY2020
Slide 31: Wholesale related data
2Q 3Q 4Q 1Q 2Q Net revenue 691.4 703.1 172.7 202.7 194.9 199.0 205.5 3.3% 19.0% Non-interest expenses 627.1 628.6 147.7 161.9 157.9 173.7 185.3 6.7% 25.5% Income (loss) before income taxes 64.3 74.5 25.0 40.8 37.0 25.3 20.2 -20.1% -19.1% FY2020/21 FY2021/22 QoQ YoY FY2021/22 FY2022/23 2Q 3Q 4Q 1Q 2Q
Slide 32: Number of employees
NOMURA Number of employees FY2020/21 FY2021/22 Mar Mar Sep Dec Mar Jun Sep Japan 15,330 15,213 15,393 15,299 15,213 15,503 15,384 Europe 2,769 2,820 2,811 2,817 2,820 2,811 2,869 Americas 2,152 2,257 2,171 2,181 2,257 2,252 2,358 Asia and Oceania1 6,151 6,295 6,216 6,259 6,295 6,407 6,520 Total 26,4
Slide 33: 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 sell, s
Slide 34: Nomura Holdings, Inc. www.nomura.com
Nomura Holdings, Inc. www.nomura.com