Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2008.3 Earnings Presentation
43 slides from Nomura's earnings presentation, Feb 1, 2008
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 February 2008. NOMURA HOLDINGS, INC. (Translation of re
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 2008
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 1, 2008 By: /s/ Toshio Hirota Toshio Hirota Exec
Slide 4: Consolidated Results of Operations (US GAAP) Third quarter, year ending March 2008
Table of Contents Consolidated Nomura January 2008 Holdings, Results Inc.of Operations (US GAAP) Third quarter, year ending March 2008
Slide 5: Important notice
Table of Contents 1. The 2. securities or 3. 4. accepted 5. must their liquidity 6. This Nothing No sales nature, be part information consolidated document may read of by issued of in secondary Nomura are be in this this the made. inherently by document is contains document and context Nomura financ
Slide 6: Presentation Outline
Table of Contents Appendix Presentation Outline Net Third Effect Investee Domestic Global Asset Segment ThirdQuarter Non-interest League Market (P14) Dividend Value Number Full Consolidated Main Adjustment 3Income Income Year Revenue Quarter Management at of Markets Markets: Investment Merchant Shar
Slide 7: Third Quarter Key Points
Table of Contents Investment Number 4*Third Domestic Quarter quarter onetrust Retail inROE Results Global administration **Thomson of 4.1% Key Equity Points (annualized) and Financial fees Equity-related and other* mainlyincreased due (Japan) to global and for the Any financial 12th Japanese straigh
Slide 8: Consolidated Results Highlights
Table of Contents Third *Annualized 380.7 400 200 143.9 51.5 NetIncome/ROE (billions Net 100 ROE 25% 80 79.1 4Q 3Q FY2008.3 Unrealized Business •Appendix 5Income Adjustment Consolidated 20% 1Q 4Q revenue Revenue Income 200.0 132.1 -2.6 40 (annualized, Quarter 322.9 147.9 2Q 1Q Taxes before 6.0% 14.6
Slide 9: Segment Highlights
Table of Contents Third Net 400 24.1 23.7 FY2007.3 3Q Income (billions 200 12.2 100 040.1 -50-1.8 4Q -3.9 revenue Revenue 352.7 16.8 147.9 15.9 103.2 81.2 Quarter -12.3 1Q before -1.0 of 115.9 36.7 6.7 15.4 150 2Q 10.88.5 yen) -5.2 from 20.7 Business 3Q 24.5 143.9 Income 124.1 308.7 - all -0.5 8.0 2
Slide 10: Domestic Retail
Table of Contents Domestic Full Quarter (billions 500 124.1 440.1 administration 305.8 and 300 197.2 banking 249.3 200 160.9 079.5 taxes FY2007.3 Q Commissions Sales 95.7 Fees 15.0 Investment 32.0 2.4 Net 121.8 Non-interest 213.6 Income 35.7 7•Appendix: Third Retail Domestic Number 0oQ 4.9 asset Rev
Slide 11: Global Markets
Table of Contents Global In Full Quarter (billions 400 60.2 •Appendix FY2007.3 Fixed 154.0 82.0 Equity 0.0 Other Net 236.0 Non-interest 142.4 Income 93.6 Third Value Market Fixed Equity, 0.0 Revenue revenue 371.1 Year 0163.3 110.2 120.8 174.0 284.1 Income 0Markets: 33.1 Quarter at before -30 of Inco
Slide 12: Global Markets: Topics
Table of Contents Global With US Monoline Effective 9*(Exposure* AsCMBS-related Mortgage RMBS RMBS-related CMBS of flexible Markets: end exposure* Exposure Business of = hedging Finance approx. December Topics exposure* is79bn operations, Business-related approx. 2007 yen, =37bn Approx. Protection*
Slide 13: Investment Banking
Table of Contents Global manager Financial Full 160 Net revenue 36.7 Year Investment for 40 Quarter Net120 Sony Income Revenue 30 (billions Financial Banking: 26.6 before and 99.7 of Income income Holdings’ Top yen) 99.2ranking (billions 24.1 taxes before large 20.7 Appendix inIncome of Equity IPO 2
Slide 14: Merchant Banking
Table of Contents Global Unrealized Full Quarter (billions 80 •Appendix 3Q YoY QoQ FY2006.3 FY2005.3 FY2004.3 FY2003.3 FY2008.3 FY2007.3 Net -6.6 Non-interest 8.6 Income -15.3 11Effect Business 60 4Q 10.2 Revenue revenue Year 10.7 0.5 68.2 1Q Merchant before of 10.4 of 7.3 -3.0 consolidation exposur
Slide 15: Asset Management
Table of Contents Asset Sales *As Full Quarter (billions 100 •Appendix 3Q YoY QoQ FY2006.3 FY2005.3 FY2004.3 FY2003.4 FY2008.3 FY2007.3 Net 40.4 Non-interest 36.3 Income 4.0 Note: 12 Assets Asset 4Q 0.5 assets Revenue revenue 30 Year of 40.3 39.8 of In Management: end 1Q 90.1 10.0 Management before
Slide 16: Segment "Other"
Table of Contents Segment “Other” Income Full 60 40 related 10.1 20 FY2007.3 Y Net econom Realized 1.7 securities Equity -3.8 Corporate -9.4 Incom -41.6 *Businesses 13 o23.9 60 1.2 Y gain/loss Year 8.5 -10.7 20 7.0 43.1 3Q ein to 6.9 before 7.0 7.3 income ic before gain “Other” 10.1 Quarter earnings
Slide 17: Non-interest Expenses
Table of Contents Non-interest 800 Full (billions Quarter 350 Fixed-type 250 Variable-type benefits 200 150 48.6 Compensation 2Q 1Q 4Q 3Q YoY QoQ FY2006.3 FY2005.3 FY2008.3 FY2007.3 Commissions 12.8% -1.1% 93.4 94.4 100.7 93.5 82.8 331.0 311.3 264.7 Information 73.5% -9.7% 20.4 22.6 22.7 18.1 11.8 4
Slide 18: Dividend Policy
Table of Contents Dividend •Target Minimum •Additional When is •Full-year (based Recent Payout 4Q 3Q 2Q 1Q 30% 48 8424 FY2008.3 12 34+a a8.5 — (billions Target FY2007.3 FY2006.3 Additional 61 Share 23 46 0T 49 Total 84 141 *Total 48% 46% Net 15 4otal pay-out added income Return Buyback avidend divid
Slide 19: Appendix
Table of Contents NOAURA Appendix
Slide 20: Net Income, ROE and Per Share Data
Table of Contents (billions 10% 200 15% 300 20% 0400 100 5% Net 1-3Q FY2007.3 FY2006.3 FY2005.3 FY2004.3 FY2003.3 FY2008.3 ROE 88.9 175.8 304.3 94.7 172.3 119.9 5.4% 8.3% 15.5% 5.2% 10.1% 7.4% Basic Shareholders’ 46.57 92.25 159.02 48.80 88.82 61.26 17 *Annualized 1,170.50 1,146.23 1,083.19 962.48 9
Slide 21: Consolidated Revenue
Table of Contents Consolidated (billions Com Revenue 4Q 3Q 2Q 1Q YoY QoQ FY2008.3 FY2007.3 1-3Q Quarter Fees 40.7% 323.3 229.8 22.9% -3.2% 103.4 106.9 113.0 107.6 84.2 66.1 79.6 Asset -9.7% 66.4 73.6 -37.1% 25.7% 20.3 16.2 29.9 25.7 32.3 26.9 14.4 fees 43.1% 145.9 101.9 29.7% -6.4% 47.6 50.9 47.3 44
Slide 22: Main Revenue Items
Table of Contents Maininterest (billions 4Q 3Q 2Q 1Q YoY QoQ FY2008.3 FY2007.3 1-3Q Quarter Stock -11.8% 61.2 69.4 -17.3% -8.3% 18.7 20.4 22.2 22.6 18.8 28.0 190.9% 125.4 43.1 154.9% 9.4% 44.5 40.6 40.3 30.2 17.4 11.8 Commissions 16.9% 7.7 6.6 21.4% -35.6% 2.4 1.7 1.9 2.7 40.7% 323.3 229.8 22.9% -3.
Slide 23: Segment Information
Table of Contents Adjustment (billions Domestic 4Q 3Q 2Q 1Q YoY QoQ FY2008.3 FY2007.3 1-3Q Quarter -5.4% 111.3 117.6 -39.2% -11.5% 32.2 50.6 43.3 46.9 28.2 42.5 -17.2 34.9 1.1% -67.7 26.0 23.9 24.1 -3.6 14.3 Global Banking -31.2% 22.5 32.8 -47.6% 5.7 -3.9 20.7 11.6 10.9 16.3 5.6 Asset -42.7% 33.2 58
Slide 24: Consolidated Balance Sheet
Table of Contents Consolidated (billions Mar. Dec. % Cash Liabilities Assets Short-term 41.4% 1,490 1,054 Payables 16.0% 1,268 1,094 Loans 1.0% 1,359 1,346 16.8% 1,890 1,618 -54.0% 9,480 20,599 Collateralized 4.3% 5,006 4,800 -51.8% 8,593 17,838 Long-term -3.6% 815 846 Trading 18.8% 5,944 5,003 -9.9
Slide 25: Effect of Consolidation/Deconsolidation of Private Equity Investees
Table of Contents Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies (Non-interest Expenses) (billions Full Compensation 4Q 3Q 2Q 1Q FY2006.3 FY2005.3 FY2008.3 FY2007.3 Quarter Fixed-type 97.1 97.7 105.6 97.4 86.7 79.1 82.8 345.9 325.4 275.0 50.1 51.1 50.4 44.3 43.8
Slide 26: Domestic Retail Related Data (1)
Table of Contents Full 4Q 3Q 2Q 1Q FY2006.3 FY2005.3 FY2004.3 FY2003.3 FY2008.3 FY2007.3 Quarter Commissions 18.7 20.4 22.2 28.9 22.6 18.8 98.3 153.6 103.0 92.1 48.2 31.4 35.4 39.6 39.1 33.7 23.9 28.0 124.7 95.9 49.9 46.9 34.9 0.5 0.7 0.6 3.5 11.1 16.9 30.1 32.9 37.3 36.9 32.3 22.1 23.2 114.5 74.2 3
Slide 27: Domestic Retail Related Data (2)
Table of Contents (trillions 0M 20 40 60 80 100 Mar.31, Jun.30, Sep.30, Dec.31, Foreign 43.3 45.9 49.8 48.5 49.3 33.5 28.9 Equities Domestic 3.1 3.6 4.0 3.7 Stock 17.1 17.2 16.9 16.4 13.1 11.8 10.0 Bond 8.7 8.5 7.4 5.3 3.3 2.2 Overseas 4.6 5.0 4.7 4.5 4.9 5.5 *6.5 81.3 84.3 88.3 85.2 80.5 61.2 54.8
Slide 28: Domestic Retail Related Data (3)
Table of Contents Domestic Full (billions Quarter 0F 897 1,582 2,000 1,687 1,788 3,391 4,000 4,581 6,000 5,975 6,749 8,000 FY2003.3 1Q *Domestic 25 Y2008.3 2QYear 3QofRetail Client yen) Related Assets Data excludes (3) Domestic portion from Client regional Assetsfinancial Net Assetinstitutions Inflo
Slide 29: Domestic Retail Related Data (4)
Table of Contents Domestic Mar. (thousands) Home Full FY2003.3 FY2008.3 Quarter 1Q *No. **IT 26 Total 2Q of Year 31,2003 share Trade orders 3Q of Retail Domestic FY2004.3 New is(online the 41% Mar. accounts Related percentage 49% 31,2004 Retail trading FY2005.3 52% Data (individual) and Mar. account
Slide 30: Merchant Banking Related Data
Table of Contents (billionsMerchant Global of yen) 600 Banking 543.4Related 546.8 500 Data 457.6 Business 439.1Exposure 412.7 421.0 Terra 400Firma 375.7Europe 301.6 300 (excluding 231.2 219.6 Terra202.7 Firma)209.6 Japan200 132.1 98.7 84.5 100 35.9 0 Japan 31,2003 Mar. Mar. 31,2004 Mar. 31,2005 Mar.
Slide 31: Asset Management Related Data (1)
Table of Contents Asset 50M 10 15 15.9 17.6 17.9 20 23.1 25 27.0 30 29.7 30.3 30.6 35 Notes: overlap ar. 31, Management 1.amongst 2003 TotalMar. assets group Related 31, under companies. 2004management Data Mar.(1) 31, Data Total 2005 until ofAssets Mar. Nomura March 31, Under Asset 2006 31, Managem
Slide 32: Asset Management Related Data (2)
Table of Contents Asset 30 15 (trillions Assets Mar. Jun. Sep. Dec. 2007 2006 2005 2004 2003 19.8 20.6 22.0 18.8 14.0 11.3 10.7 11.9 12.4 13.3 10.8 6.9 4.5 5.7 6.2 5.8 5.6 6.3 Investment 2.3 2.4 2.2 0.4 Domestic 8.1 8.3 7.3 7.1 7.0 5.1 4.4 3.6 Overseas 5.0 3.9 4.0 3.2 2.9 27.9 28.9 29.2 25.9 21.0 16
Slide 33: Asset Management Related Data (3)
Table of Contents Asset AUM 11.9 12.4 13.3 10.8 6.9 4.4 4.5 3.2 Management 5.7 6.2 5.8 5.6 6.3 7.3 Public 20% 18% 15% 19% Stock 45% 44% 42% 40% Market 66.8 67.5 67.9 59.4 45.0 28.9 23.3 16.3 Bond Source: 13.0 12.9 14.1 13.2 13.5 15.8 18.1 Mar. Jun. Sep. Dec. Japan 1,882 2,124 2,191 1,935 791 330 9Ba
Slide 34: Third Quarter Achievements
Table of Contents ThirdBond Newly-launched billion Existing Schroders Oct-Dec Approx. New Toyota Issue Large European Equity Loan-related Nomura Major Sony IPO Industrial REIT M&A Management Tender Number 205,668 183,267 166,387 129,516 75,562 61,554 40,156 Monthly 15,873 13,519 11,272 9,054 5,805 3
Slide 35: League Tables
Table of Contents League 75 40.9% 10,378.8 60 10.2% 2,584.9 9.9% 2,515.5 22 2,493.9 2,300.8 33 6.0% 1,529.3 4.9% 1,243.8 2.4% 612.0 1.7% 437.3 UBS 24 1.8% 456.6 -Announced A Deals C 155 22.4% 34,495.4 96 15.0% 23,032.6 25 14.3% 21,966.5 G 20 13.7% 21,133.8 31 12.3% 18,965.2 113 11.9% 18,386.2 29 11.
Slide 36: Market Share Data
Table of Contents (trillions Full Individual 3Q 2Q 1Q Quarter 52.3 62.9 67.2 270.2 308.3 144.7 105.9 52.0 Off-floor/Off-exchange 5% 8% Off-floor Secondary 11.0 11.4 13.4 48.2 48.6 31.9 33.2 11.7 11.8 14.2 42.8 30.5 21.1 19.3 14.1 Off-exchange JGB 22% 21.5 21.2 21.7 85.3 80.7 80.1 74.4 68.1 Bond 9% N
Slide 37: Value at Risk
Table of Contents Valueof Definition 99% 1-day 7.8 Maximum: Inter-product Minimum: (billions Average: End Mar. Jun. Sep. Dec. Interest 3.8 4.7 4.6 6.0 3.0 1.5 Equity Foreign 3.2 3.5 3.7 3.3 2.8 2.0 2.3 Diversification 10.4 9.1 10.6 9.8 10.7 6.5 5.8 4.0 Sub-total 4.2 2.6 2.4 1.4 0.7 0.5 0.2 34 5.4 5.
Slide 38: Number of Employees
Table of Contents Number Mar. Dec. Japan 11,685 10,667 9,618 9,236 9,185 9,285 Note: 18,176 16,854 14,932 14,390 14,024 14,073 Total 1,046 900 778 718 655 616 Asia/Oceania 1,118 1,322 1,073 1,026 866 797 Americas 1,912 1,791 1,515 1,535 1,403 1,389 Europe 2,415 2,174 1,948 1,875 1,915 1,986 Certain
Slide 39: Full Year Data
Table of Contents NOMURA Full Year
Slide 40: Consolidated Revenue (Annually)
Table of Contents Consolidated (billions Fees 337.5 356.3 222.0 210.2 141.6 Commissions Revenue FY2007.3 FY2006.3 FY2005.3 FY2004.3 FY2003.3 Asset 99.3 108.8 92.3 87.0 81.8 146.0 102.7 78.5 66.2 79.3 290.0 304.2 201.7 229.0 47.6 12.3 7.7 13.1 -14.4 Gain 981.3 693.8 401.4 343.3 368.7 Private -20.1 67
Slide 41: Main Revenue Items (Annually)
Table of Contents Maininterest (billions FY2007.3 FY2006.3 FY2005.3 FY2004.3 FY2003.3 Stock 98.3 153.6 103.0 92.1 48.2 73.2 79.5 40.2 45.4 29.3 Commissions 6.8 14.3 13.0 12.2 7.6 337.5 356.3 222.0 210.2 141.6 38.6 23.8 24.1 23.2 26.0 120.5 85.1 41.7 37.3 30.5 Fees 56.6 57.3 49.1 44.7 24.6 Bond M&A/F
Slide 42: Segment Information (Annually)
Table of Contents Adjustment Domestic FY2007.3 FY2006.3 FY2005.3 FY2004.3 FY2003.3 160.9 197.2 81.2 79.5 35.7 58.8 157.7 60.2 120.8 93.6 Global 44.4 51.5 29.2 17.2 12.8 Asset 52.8 55.4 -3.0 5-15.3 36.5 20.6 10.0 0.5 4.0 Segment 23.9 -30.5 10.1 7.0 -41.6 Other 353.3 482.5 177.5 218.5 130.8 Unrealized
Slide 43: Nomura Holdings, Inc. www.nomura.com
Table of Contents Nomura Holdings, Inc. www.nomura.com