Nomura Holdings, Inc. · TSE:8604
Nomura — Q4 FY2004 Earnings Presentation
45 slides from Nomura's earnings presentation, Apr 30, 2004
Slide 1: Nomura Holdings, Inc. Form 6-K
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 April 2004. NOMURA HOLDINGS, INC. (Translati
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) Fourth Quarter, Fiscal Year ended March 2004]
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. By: /s/ HIROSHI TANAKA Hiroshi Tanaka Senior Managing Director
Slide 4: Consolidated Results of Operations (US GAAP) Fourth Quarter, Fiscal Year ended March 2004
Table of Contents Consolidated Fourth Nomura Quarter, Holdings, Results Fiscal Inc.of Year April Operations ended 2004March (US GAAP) 2004
Slide 5: Outline and Important Information
Table of Contents ?Outline 1. 2. athereof. 3. prior 4. information 5. Private These Important sentiments, 6. transactions. 2 Asset Appendix Financial Review Segment Domestic Global Non-interest prospectus This The Nothing No written part forward-looking information consolidated document Securities M
Slide 6: Consolidated Financial Summary
Table of Contents Consolidated Twelve Total Leverage Non-interest Fourth Income (billions Net ROE * 3 Allincome revenue percentages 10.1% 15.9% assets shareholders’ Quarter Months before of16.7 yen) 29,753.0 172.3 69.9 (annualized) 803.1 238.1 expenses Financial times income (N.M.) are (up (up equit
Slide 7: Review of Segment Information
Table of Contents Review ?Global Asset Segment Domestic Non-interest Wholesale Management of Businesses Information Retail Expenses (P6-8) (P9-12) (P13-14) (P5) (P15-16)
Slide 8: Segment Income before Income Taxes by Segment
Table of Contents Segment Income Domestic (Billions 79.5 -5 35.7 Total35.7 Global 138 1 23.8 21.7 9.0 36.5 91.0 Asset 9 3 8 6 -7 -0.3 1.0 1.3 1.1 3.2 Sum FY03.3 4Q 3Q 2Q 1Q Total Up 51.0 Q 5Total 50123 67% FY03.3 1Q123% 1.2 19.1 1.4 13.9 4Q 24.8 41.9 11.7 51.5 5-1. 91.0 57 2.6 -2. -0.1 41 2. 37 138
Slide 9: Domestic Retail (1)
Table of Contents Domestic Retail (1)* | = Commissions: 47.2 billion yen, up 138% » Stock Brokerage Commissions”: 28.2 billion yen, up 267% > Individual Equity Agency Transaction Value*** Monthly average = 11.4 trillion yen, up 264% » Equity Holding Accounts End of Mar: 1.369 million (up 67,000 a/c
Slide 10: Domestic Retail (1) Revenue
Domestic 4Q Individual End 6th ?(Issue (Billions Up 249.3 305.8 FY03.3 55.2 79.8 Total Net Sales Investment administration Fees other Commissions banking Retail commissions* ** *** **** Nomura * 6 **** Commissions: Equity IT Commissions Stock Foreign Insurance Outstanding Fees Distribution Sales Inv
Slide 11: Domestic Retail (2)
Table of Contents Domestic Retail (2) Stock Brokerage Commissions/Foreign Currency Bond Distribution to Retail Investors / Revenue Breakdown (approx. figs.) k Brok mmission: (ogons of yen) 22 256 o8 88888388
Slide 12: Domestic Retail (2) Stock Brokerage and Bond Distribution
Domestic Stock 26.2 282 30 14.4 16.8 20 20.5 25 15 10 10.2 12.1 5 Foreign Retail (Billions 1,000 800 900 488.6 600 597.3 700 436.8 500 400 300 2918 200 F 0 100 Revenue 100% 7% 24% 90% 8% 14% 70% 15% 80% 60% 21% 50% 47% 30% 40% 35% 20% 28% 34% 10% FY04.3 0% FY02.3 1Q Variable (administration Investme
Slide 13: Domestic Retail (3) Client Assets
Table of Contents Domestic Retail Foreign (Trillions Other*** 1.4 31.5 31.3 0.6 28.9 0.8 27.1 0.2 6.9 10.2 23.8 0.0 0.5 5.8 2.4 2.5 2.2 16.0 15.7 11.1 12.8 13.0 5.1 10.3 3.3 4.2 5.0 3.4 1.9 Mar. 99 * ** (monthly 166.1 200.3 258.9 148.3 FY02.3FY03.3 7.0 109.2 128.2 1Q Net Client 00 Including 2Q 0.3 0
Slide 14: Global Wholesale (1) Fixed Income
Table of Contents ?Global Net (Billions Up 154.0 174.0 FY03.3 36.1 37.3 4Q 9 Toyota Foreign GE KfW Large-scale EIB: Nordic Points 13% 3% 4Q Revenue Capital: 3Bank: Wholesale FY04.3 billion Motor Investment Currency 17.7 Foreign 80.4 Credit: (Euros) FY03.3 (1) billion billion Bond Bank: Fixed Currenc
Slide 15: Global Wholesale (2) Equity
Table of Contents ?Global FY02.3 5.7 8.5 9.5 10.2 14.7 19.0 21.6 23.0 25.1 28.8 30.9 31.9 1Q *Total Net (Billions Up 82.0 110.2 FY03.3 21.4 35.5 4Q 10Market Equity Off-floor/Off-exchange Net Points 2Q 34% 66% 4Q Revenue Gain equity 3Q Wholesale FY03.3 FY04.3 Agency of Environment 4Q on yen) agency E
Slide 16: Global Wholesale (3) Investment Banking
Table of Contents Global 4Q Major ?(M&A Sources: ** Net Up (Billions 69.1 Down 21.0 FY03.3 11 Asset Asahi Value: IPO, IPO PO Catherina M&A, Mitsubishi Matsushita Rank: Thomson Points 3% Revenue 70.9 19.4 Market: Market: issues: 8% PO* Ranking)** Wholesale Finance Beer, 4Q No. US$ Advisory * Nomura F
Slide 17: Global Wholesale (4) Merchant Banking
Table of Contents ?Global Terra 284.9 66.0 331.4 357.2 14.3 281.8 16.1 276.7 265.7 FY02.3 Net Up 10.7 (Billions FY03.3 -6.6 4.1 7.1 4Q 12Acquisition New Establishment Exposure Points 72% 4Q Revenue 14.3 19.2 Firma 291.0 277.1 265.7 Deals Wholesale FY03.3 FY04.3 of to yen) NPF 291.4 281.4 of Merchant
Slide 18: Asset Management (1)
Table of Contents Asset ?Established Mar.02 47.9 102.9 104.3 139.8 178.0 •US Net (Billions Down Up 36.0 37.1 7.9 FY03.3 4Q 13 Primarily Assets World New Nomura Mar. Points 14% 4Q 9.0 Preferred Revenue Management 3% 31, Funds Jun.02 FY04.3 Genome Under ofFund US 2004: invests yen) Nov, Dec, Securitie
Slide 19: Asset Management (2) Assets Under Management
Table of Contents Asset Assets (Trillions Investment Other 21.0 19.9 4.9 18.2 0.1 4.5 5.6 14.7 0.3 0.2 0.0 3.8 4.8 7.0 10.4 10.7 13.3 7.3 4.3 7.8 3.5 2.1 Market Bond Total Stock 41% 40% 35% 25% 23% 26% 28% 29% 21% 19% Mar.99 17% 18% Source: 14 0.2 15.4 0.4 0.3 4.1 3.6 6.6 7.0 4.3 3.2 2.6 Stock 0.2 1
Slide 20: Non-interest Expenses (1)
Table of Contents Non-interest Expenses (1)* ™ Compensation and Benefits 63.9 billion yen, up 1% ® Information Processing and Communications 22.5 billion yen, up 6% ® Business and Development Expenses 7.2 billion yen, up 23% = Other Expenses 30.4 billion yen, down 41% ™ Fixed Cost Coverage Ratio ¥ F
Slide 21: Non-interest Expenses (1) Breakdown
Non-interest 4Q Information 15 30.4 600 Points Fixed ñ Asset * (Billions 518.9 0.3% F 0 100 162.9 200 11% Down 300 400 500 Total Other Business Occupancy expenses Inf Expenses depreciation Commissions communications Compensation brokerage Y03.3 All FY04.3 ormation Up billion 51.3 Cost 4Q of and 29%P
Slide 22: Non-Interest Expenses (2) Compensation and Benefits
Table of Contents ?Non-Interest Compensation (Billions 36.6 36.7 40.4 34.2 35.0 29.3 32.5 36.0 29.1 FY00.3 22.4 23.2 24.5 25.7 27.0 (1/4) *Excludes in 16Variable-type Compensation Fixed-type 2Q28.4 Fixed-type 35.3 34.3 28.8 (1/4) FY04.3). FY01.3 of Variable-type 36.6 35.5 expenses (1/4) expenses yen
Slide 23: Appendix
Table of Contents •Appendix Assets VaR Global Domestic Major Revenue Non-interest Client Secondary Primary Number (P32) Assets Differences Under Wholesale Market of and (P22-25) Retail Market Accounts Employees Expenses Income (P27) Management Share Related (P19) (Segment Share (P28) by Data (P26) (
Slide 24: Revenue by Business Segment (Quarterly)
Table of Contents Revenue (Quarterly Domestic Global Asset FY03.3 1Q Net-interest Net Non-interest Income 18 2Q revenue Management 3Q Wholesale before Full and Retail Base) 4Qrevenue 67,035 89,861 9,795 FY04.3 revenue expenses Income Year income Unit: 10,311 1Q 56,742 55,294 599 16,541 -55 Full 66,4
Slide 25: Global Wholesale Revenue (Quarterly)
Table of Contents Global (Revenue Fixed Equity Investment Merchant FY03.3 1Q Net Non-interest Income 19 2Q revenue Income 3Q Wholesale before Full and Banking 4Q Banking 43,887 30,416 16,830 -1,272 FY04.3 expenses Income Year income -5,989 1Q 32,476 12,353 16,453 Full by 18,944 18,340 13,850 2,253 2
Slide 26: Domestic Retail Related Data
Table of Contents (Bilions FY02.3 1Q Net Sales Investment Fees Commissions and (Trillions Domestic trusts Bond Stock Foreign (Billions 2001.6 Outstanding *Nomura ** 20 commission 2Q interest redemption* from credit investment 6.2 brokerage investment 3Q 2001.9 FY03.3 investment of of 7.0 of Securiti
Slide 27: Differences between Segment and Income Statement
Table of Contents Major (FY04.3 -12.5 instruments Loss/gain Equity Corporate Total Others Unrealized 54.7 equity Effect 2.4 the Income 21 private billion billion Income billion of Differences securities 21.6 inbefore 12 consolidation/deconsolidation losses/earnings on items yen equity loss/gain yen
Slide 28: Revenue (1) Commissions
Table of Contents Revenue (1) (Commissions) (Billions of yen) 2 210.2 m 180 rr) pas 141.6 2 109 r) C 4 » ° Fvo33 FYO43 [tous wis 2102 |e omer 20 2 Je Commassions fox datrbution of 05 m3 mecsrrert rusts ls One cormssors 76 122 ‘Stock brokerage commasces 23 454 (omers) | Seektrorae commas 482 wt (Dome
Slide 29: Revenue (1) Commissions
Revenue (Commissions) yen) 80 100 120 140 141.6 160 180 200 Commssions (Billions 60 62.9 70 50 56.0 34.7 40 30 F 0 10 20 1Q Total Commissions investment Other Stock (others) (Domestic 22Y03.3 57.6 46.1 26.6 2Q34.3 220 141.6 46.1 26.0 5.7 commissions brokerage 3Q FY04.3 FY03.3 (1) of 210.2 33.8 9.8 3
Slide 30: Revenue (2) Fees from Investment Banking
Table of Contents Revenue (2) (Fees from Investment Banking) (Billions of yen) 100 87.0 81.8 80 0 40 2» ® rma rma Tout ms we [8 Other uu a | Financial atvinorytees “us “se fe EZ) Ev) Cetgeeeecererting commamny xe Ca
Slide 31: Revenue (2) Fees from Investment Banking
Revenue (Fees 40 60 80 81.8 87.0 100 (Billions 15 15.6 16.9 18.3 20 19.9 25 24.4 28.2 30 31.0 35 F 0 5 10 1Q Total Other Financial Bond Equity 23Y03.3 14.5 2Q15.6 81.8 from underwriting 3.4 0.3 underwriting 3Q FY04.3 FY03.3 (2) of advisory 0.1 1.0 87.0 18.3 4Q Investment yen) 0.6 1Q 16.9 FY03.3 1.4
Slide 32: Revenue (3) Asset Management and Portfolio Service Fees
Table of Contents Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) 100 79.3 80 + 66.2 60 - 40 20 4 0-4 F033 FY04.3 Total 793 66.2 8 Custodal fees 94 99 |B Asset management fees 702 56.3
Slide 33: Revenue (3) Asset Management and Portfolio Service Fees
Revenue (Asset 40 60 66.2 80 79.3 100 (Billions 25 30 yen) 20 21.9 15 15.7 16.8 17.0 17.5 F 0 5 10 1Q Total Custodial Asset 24Y03.3 24.2 18.6 13.7 2Q24.2 79.3 management Management 3Q FY04.3 FY03.3 (3) offees 66.2 21.9 4Q 1Q 9.1 2.4 17.5 FY03.3 2Q 9.9 2.3 fees and 15.7 3Q 2.3 70.2 21.8 FY03.3 Portfo
Slide 34: Revenue (4) Net Gain on Trading / Net Interest Revenue
Table of Contents Revenue (4) (Net Gain on Trading / Net Interest Revenue) (Billions of yen) 342.6 Kc) 285.2 10 & x 2 Total © Net interest revenue © Equity 8 Gains on private equity M6 47 investmentmerchant banking trading ® Bonds and other 133.6 1523
Slide 35: Revenue (4) Net Gain on Trading / Net Interest Revenue
Revenue (Net -20 30 80 130 180 230 280 285.2 330 (Billions 80.3 100 99.5 113.9 125 50 56.8 75 66.6 -81.5 0 FY03.3 1Q Total Net Equity Gains investment/merchant Bonds trading 25 2542.8 2Q interest 86.4 Gain 285.2 56.8 on and 35.9 18.5 3Q FY04.3 FY03.3 (4) of private on 66.6 4Q other 342.6 yen) revenu
Slide 36: Non-interest Expenses
Table of Contents Non-interest Expenses (Billions of yen) 700 + 600 + 518.9 nace 500 + 400 + 300 + 200 + 100 + 0 FYO33 FYOAS [ toa sae Py) le otter 60 Eo |B Business developrent expenses Ms a © Occupancy and related decreciation 572 2 | Information processing end ™ 0 Communications © Commissions and
Slide 37: Non-interest Expenses
Non-interest (Billions 250 600 700 150 500 162.9 518.9 520.4 124.3 400 0 50 200 300 100 113.2 118.5 FY03.3 Total Other Business Occupancy Information communications Commissions Compensation 26FY03.3 200 144.6 120.3 518.9 128.8 95.0 FY04.3 of development FY03.3 84.6 and 520.4 yen) 126.7 processing Ex
Slide 38: Nomura Securities Client Assets
Table of Contents Nomura Jun. Bonds Sep. 37.2 Client Mar. Equities Foreign Domestic Stock Bond Overseas Other Total *Client 27 01 89 36.0 98 57.5 22.1 investment 0.2 0.1 investment Assets 12.3 Sep. Assets, Mar. Mar. Bonds Securities 28.9 9.1 mutual Mutual 33.3 0.1 0.0 Bonds 52.3 23.8 12.8 10.3 01 90
Slide 39: Accounts and Transaction Share Data
Table of Contents Number 1,005 IT No. Transaction Nomura 2,965 Equity Jun.02 1,246 New FY03.3 1Q 20 28 share 22 2Q ofAccounts 1,079 3,029 1,274 20 order Sep.02 Holding 3Q FY04.3 of Home Cash 164Q Accounts value 1,114 3,079 1,285 16 39% Management 1Q Dec.02 (individual, Trade 21 Accounts 38% 17% 2Q 1
Slide 40: Secondary Market Share Data
Table of Contents Individual Off-floor/Off-exchange Off-floor Off-exchange JGB Secondary FY03.3 1Q Market Nomura’s 29 2Q Auction 3Q 5.2 16.8 296 Full market share Equity 4Q Market Bond 3.9 299 18.2 FY04. Share 9.6 Year 5.2 24% 20% 13% 261 Trading 4.1 15.7 Agency 8.7 Share 3.1 Full 1Q 273 4.1 18% 16%
Slide 41: Primary Market Share Data
Table of Contents Primary Straight Euro Samurai Japanese FY03.3 02.4-6 Nomura’s Sources: ** *** 30 Thomson Nomura Yen 02.4-9 FY04.3 Bonds Market Bonds *PO IPO Bonds share Thomson Financial Securities *** *** 02.4-12 *** 20% 35% 4% 89% 40% Share ** 4% Dealwatch, 22% 24% 70% 42% 02.4-03.3 Data Securit
Slide 42: Assets Under Management (NAM / NCRAM)
Table of Contents Assets NAM Stock Bond Non-public Investment NCRAM Jun. Total 31 01 21.9 2.6 investment investment (Trillion Under Sep. 2.5 (Billion 19.8 advisory investment 01 2.6 Management yen) 18.6 Dec. 3.1 trusts trusts US$) 18.2 3.7 (domestic) (overseas) 01trusts 14.5 2.7 Mar. 3.8 17.1 (NAM 2
Slide 43: VaR (Consolidated)
Table of Contents Value Minimum: ?Average: (Billions The Equity Interest Foreign Sub-total Diversification VaR 32Definition 99% 1-day Inter-product end 2.6 atconfidence 1.8 time Rate Exchange 2.3 of Risk of 3.90 3.8 1.3 1.7 quarter yen) 2.4 From horizon 1.7 3.5 (Consolidated) billion 1.3 billion pri
Slide 44: Number of Employees
Table of Contents Number Mar. Asia/Oceania Americas Europe Japan Total *Excluding 33 01 14,393 (FA, (excluding 1,370 Sep. of835 SA) Employees NPF’s 14,856 01 486 1,449 893 2,195 Mar. FA, 476 827 consolidated 1,381 14,550 02 SA)* 2,192 468 753 Sep. 1,352 462 797 9,507 14,608 2,177 02616 821 subsidiar
Slide 45: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com/jp/