Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2006 Earnings Presentation
36 slides from Nomura's earnings presentation, May 9, 2006
Slide 1: 2006 Third Quarter Results (US GAAP)
2006 3 3 (US GAAP) 2006 1 2006 3 3 2006 1 30 6 30 CFO 1
Slide 2: 2
2 2
Slide 3: Contents
(P4) ROE (P14) (P5) (P15) (P16) (P6) (P17) (P7) (P18) (P8) (P20) (P9) (P21) (P10) / (P22) (P11) (P23) (P12) (P24) P28 (P29) 3 (P31) (P32) (P33) P34 P35 3 3
Slide 4: Consolidated results and ROE
3,598 32 86 1,871 59 3.8 1,065 75 4.2 ROE 22.1 ROE 10 10 (10 ) 400 120 25% 200 187.1 22.1% 359.8 100 20% 300 272.6 150 80 117.6 13.1% 15% 200 100 60 106.5 10% 40 60.9 100 50 5% 20 0 0 0 0% 2006 3 2006 3 2006 3 2006 3 2006 3 2006 3 2Q 3Q 2Q 3Q 2Q 3Q 3 4 3 P5 144 SFAS144 3 2006 3 1 P15 4 4
Slide 5: Net income by segment
MRG WA (2) (2) (3) 24.3 (3) (1) (1) 3 36.3 87.2 (2) (2) MRG (3) (3) 3.6 4 3 36.3 (1) (1) WA 87.2 872 87.2 3Q 87.2 3Q 3Q 3Q 3Q 386.4 187.1 359.8 231.8 177.2 3Q ( 10 ) 9.9 (1) (1) PE / MRG WA 872 (2) PE / (1) (1) / (2) P17 (3) (3) 363 5 5
Slide 6: Segment results overview
3,864 76 2.3 2,318 2.8 5.3 5 4 2002 3 2 10 10 400 386.4 231.8 P20 2.6 250 16.4 5.5 350 80.1 200 77.6 300 219.8 35.3 250 150 23.3 13.8 200 6.9 20.5 115.2 81.5 60.9 3 100 150 4.0 77.7 4.7 9.1 100 31.5 3 50 136.7 74.1 50 101.4 41.4 4 3 0 -0.5 0 -9.2 -9.6 2006 3 2006 3 2006 3 200
Slide 7: Domestic retail segment results
1,367 35 87 741 79 4.1 10 79.4 56 539 * 3 268 30 323 * (P24 ) 10 350 305.8 304.4 300 P24 249.3 P25 250 229.1 P26 P27 200 P31 136.7 150 101.4 100 84.8 79.5 81.2 74.1 50 35.7 20.5 41.4 30.3 0 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 97.5 104.1 155.2 174.0 45.2 61.0 85.5 40% 61.7 48.2 92.1 103
Slide 8: Global markets segment results
1,152 48 2.0 609 93 4.7 48 541 MPO 55 533 880 3,750 (10 300 284.1 P31 P33 250 236.0 243.1 P34 215.8 200 150 1 2004 4 115.2 100 120.8 77.7 93.6 60.9 82.6 49.8 50 60.2 2 2004 3 31.5 0 -0.7 2005 3 -50 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 90.8 154.0 174.0 119.8 21.3 36.5 54.1 48% 125.1 82.0
Slide 9: Segment results
353 73 74 233 2.6 2.4 10 P31 100 * P32 88.3 P33 80 75.4 70.9 69.1 60 ( 40 35.3 30.9 29.2 2004 4 23.3 17.2 20.5 20 12.8 12.8 9.1 2.2 0 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 88.3 69.1 70.9 75.4 12.8 20.5 35.3 73% 57.4 56.4 53.7 46.2 10.6 11.3 12.0 6% 30.9 12.8 17.2 29.2 2.2 9.1 23.3 155% 9
Slide 10: Merchant banking segment results
801 11.7 776 16.6 NPF 1,311 2006 1 31 NPF 41.4 230 2006 1 12 10 60 140 60 PE / 140 135.8 120 50 P22 P28 40 40 100 80 80.1 30 80 77.7 77.6 20 20 10.7 7.3 6.9 10 0.5 -3.3 4.7 0 -6.6 0 -3.0 -5.9 -10 -15.3 -20 -20 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 135.8 -6.6 10.7 7.3 -3.3 6.9 80.1 1065% 58
Slide 11: Segment results
164 19 33 55 39 60 9 2.4 22.5 225 12 2,636 9 1,577 2,913 12 9 53 3,249 1 6 12 273 10 50 P29 47.2 43.5 P30 40 37.1 36.0 30 20 16.4 13.8 12.5 10.2 10 7.4 5.5 3.2 3.3 4.0 0 -1.0 -10 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 47.2 37.1 36.0 43.5 12.5 13.8 16.4 19% 37.0 33.9 37.0 36.1 9.2 9.9 10.9
Slide 12: Segment results
1,545 12 25 21 845 / P17 P22 PE / P22 P35 10 600 10 521.4 350 504.0 500 309.2 300 400 264.7 256.9 250 244.1 146.2 300 200 142.4 151.1 200 141.2 154.5 134.0 138.3 150 100 100 84.5 73.9 69.1 70.0 163.0 0 41.0 2006 3 102.9 114.4 113.7 39.2 38.6 39.7 2004 3 2005 3 50 1Q 2Q 3Q 34.6 43.5 256.9 264.7 69.
Slide 13: 13
13 13
Slide 14: ROE and net income trends
ROE 10 200 15.0% 180 12.1 160 11.1% 10.1% 140 10.0% 120 7.4% 100 168.0 5.2% 80 172.3 175.7 119.9 5.0% 60 94.7 40 20 0 0.0% 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 3Q 168.0 119.9 172.3 94.7 175.7 ROE 11.1% 7.4% 10.1% 5.2% 12.1% 85.6 61.3 88.8 48.8 91.7 816.5 846.4 919.7 962.5 1,045.1 14 14
Slide 15: Consolidated income statement
10 2005 3 2006 3 2006 3 2002 3 2003 3 2004 3 2005 3 1 3Q 1 3Q 1Q 2Q 3Q 140.0 141.6 210.2 222.0 161.4 238.8 48% 55.2 77.5 106.2 37% 75.3 81.8 87.0 92.3 66.2 67.4 2% 14.7 24.1 28.6 19% 110.0 79.3 66.2 78.5 57.3 70.5 23% 19.9 24.9 25.6 3% 162.2 172.3 229.0 201.7 131.3 205.2 56% 70.8 43.8 90.6 107% 232.
Slide 16: Revenue breakdown
10 2005 3 2006 3 2006 3 2002 3 2003 3 2004 3 2005 3 1 3Q 1 3Q 1Q 2Q 3Q 61.7 48.2 92.1 103.0 75.7 109.3 20.8 34.6 53.9 56% ( ) 31.5 29.3 45.4 40.2 29.5 38.9 8.0 14.2 16.7 18% 4.3 7.6 12.2 13.0 8.9 11.0 2.8 2.2 6.0 179% 26.7 30.5 37.3 41.7 30.0 59.5 17.5 19.6 22.4 14% 15.8 26.0 23.2 24.1 17.4 20.1 6.1
Slide 17: Income statement by segment
10 2005 3 2006 3 2006 3 2002 3 2003 3 2004 3 2005 3 1 3Q 1 3Q 1Q 2Q 3Q 741.8 602.8 729.5 709.0 507.6 777.6 53% 171.4 219.8 386.4 76% 663.3 513.5 504.0 521.4 374.6 426.9 14% 134.0 138.3 154.5 12% 78.5 89.2 225.5 187.6 133.0 350.7 164% 37.4 81.5 231.8 184% -60.2 -43.0 54.7 8.4 0.2 56.5 27615% -11.0 31
Slide 18: Segment results history
2002 2003 2004 2005 2005 3 2006 3 3 3 3 3 1 3Q 1 3Q 229.1 249.3 305.8 304.4 224.8 323.0 44% 208.6 213.6 226.2 223.2 163.2 177.2 9% 20.5 35.7 79.5 81.2 61.6 145.8 137% 215.8 236.0 284.1 243.1 173.3 242.7 40% 133.2 142.4 163.3 182.9 126.5 151.0 19% 82.6 93.6 120.8 60.2 46.8 91.7 96% 88.3 69.1 70.9 75.
Slide 19: Quarterly segment results
10 2004 3 2005 3 2006 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 75.0 75.6 75.4 79.8 87.0 64.8 73.0 79.6 84.8 101.4 136.7 87% 35% 54.2 56.9 55.3 59.8 53.3 54.9 55.0 60.0 54.5 60.0 62.6 14% 4% 20.8 18.7 20.1 20.0 33.7 9.8 18.0 19.6 30.3 41.4 74.1 311% 79% 82.6 87.1 41.6 72.8 71.8 44.9 56.6 69.8 49.8 77.7 115
Slide 20: Quarterly results
10 2005 3 2006 3 2006 3 2002 3 2003 3 2004 3 2005 3 1 3Q 1 3Q 1Q 2Q 3Q -143.4 -40.7 8.5 12.6 5.8 -10.5 8.2 -9.2 -9.6 31.4 -6.2 -12.8 -9.7 -7.7 -28.8 -2.8 -8.5 -17.6 4.3 1.7 1.2 7.0 6.2 8.1 8.2 -0.1 0.0 -9.6 -3.8 8.5 7.3 5.4 14.0 2.7 2.9 8.3 -41.7 -9.4 -10.7 4.5 -0.3 -6.8 0.5 -3.7 -3.6 -92.4 -21.2 -3
Slide 21: Consolidated balance sheet
10 2005 3 2005 12 2005 3 2005 12 1,047 1,503 521 1,126 964 1,024 1,221 1,846 21,666 20,029 5,332 7,303 14,389 15,696 1,310 1,397 881 901 15,601 14,773 2,828 3,251 2,231 2,303 32,620 34,130 932 953 1,868 1,990 34,489 36,120 34,489 36,120 144 SFAS144 21 21
Slide 22: Income statement detail
/ 2005 3 2006 3 2006 3 10 2004 3 2005 3 1 3Q 1 3Q 1Q 2Q 3Q 259.3 275.0 197.6 234.3 72.6 73.8 87.9 144.3 159.6 117.1 126.7 41.4 42.1 43.2 142.4 151.1 111.8 119.3 38.6 39.7 41.0 1.9 8.5 5.2 7.4 2.8 2.4 2.2 115.0 115.4 80.5 107.6 31.2 31.7 44.7 114.4 113.6 79.0 104.4 30.6 30.3 43.5 0.6 1.8 1.5 3.2 0.6
Slide 23: Assets under management
100 91.4 90 81.0 80 72.5 70.0 70 63.8 60 51.8 48.5 50 40 30 20 10 0 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 25.1 21.6 35.9 40.0 41.9 48.9 57.9 13.7 16.8 17.3 19.2 19.7 20.3 20.5 2.7 2.4 3.3 3.9 4.3 4.9 5.7 9.3 6.5 5.6 4.9 4.6 4.7 4.9 0.9 1.2 1.6 2.0 2.1 2.2 2.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Slide 24: Retail client data
(1) 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 1,354.0 2,284.7 1,990.0 1,154.4 304.8 340.7 268.6 28.2 34.9 46.9 49.9 19.5 20.9 26.8 10.7 16.9 11.1 6.4 1.1 0.8 0.7 15.4 11.6 21.5 31.6 14.8 16.9 19.1 2.1 6.4 14.2 11.9 3.7 3.2 7.0 22.3 11.9 13.7 14.2 3.9 4.7 6.3 20.2 8.6 10.1 10.4 2.6 3.4 4.4 1.3 1.3
Slide 25: Client assets
(2) 2 005 9 ** 80 ** 79.4 80 *** 69.4 60.2 61.5 60 60 51.3 53.7 45.5 44.4 39.8 40.7 39.9 40 35.2 40 29.1 27.1 ** 20 20 0 0 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 33.6 31.5 40.8 45.6 46.5 51.7 57.9 11.1 9.5 16.0 19.1 19.5 23.3 27.8 2.5 3.4
Slide 26: Trading data
(3) * 10 5,000 4,752.6 4,500 4,000 3,500 3,000 2,500 2,086.8 2,000 1,780.2 1,445.0 1,500 893.9 1,000 684.0 426.8 500 0 2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 26 26
Slide 27: Account and staff data
(4) 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 936 1,141 1,367 1,716 1,774 1,828 1,901 IT * 35% 36% 45% 48% 52% 53% 53% 16% 14% 22% 24% 25% 26% 27% 2,899 3,112 3,347 3,708 3,753 3,802 3,876 1,215 1,302 1,369 1,668 1,679 1,674 1,700 268 238 260 426 81 80 93 27 27
Slide 28: Asset management data
10 500 453.1 429.5 427.8 433.1 400 118.6 357.2 104.0 109.7 110.8 66.0 300 281.8 284.9 16.1 19.2 200 325.5 322.3 334.5 318.1 291.2 265.7 265.7 100 0 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 28 28
Slide 29: Investment trust data
(1) 25 25 22.5 20.1 20.2 20 19.7 18.9 20 17.9 18.2 17.6 17.8 16.8 15.9 15.7 16.0 15 15 14.2 10 10 5 5 0 0 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 3.2 3.2 4.5 4.4 5.0 5.0 6.2 1 10.4 7.3 6.3 5.6 5.4 5.8 6.0 0.2 0.2 0.4 0.8 0.9 1.1 1.3 4.5 3.6
Slide 30: Fund data
(2) ( ) 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 3.2 3.2 4.5 4.4 5.0 5.0 6.2 10.4 7.3 6.3 5.6 5.4 5.8 6.0 21% 19% 19% 15% 16% 14% 15% 40% 40% 40% 42% 42% 41% 41% 15.3 16.3 23.3 28.9 32.0 34.8 40.8 26.0 18.1 15.8 13.5 13.0 14.0 14.5 ( ) (10 ) 2004 3 2004 6 2004 9 2004 12 2005 3 2005 6 2005 9
Slide 31: Investment banking deals
3 225 2005/11/18 12 2,636 2005/12/13 12 830 Cassa Depositi e Prestiti SpA CDP 30 Caisse d’Amortissement de la Dette Sociale CADES) 30 1,150 3.18 3.15 880 3,750 ¾ 30 PFI PFI ¾ 7 117million IPO HD 400 306 DA 513 430 PO 500 189 MPO HPO 100 13 390 M&A 5,590 US$63mil
Slide 32: League tables
- 2005 1 1 2005 12 31 2005 1 1 2005 12 31 1 10,989.6 23.8% 114 1 90,821.9 48.1% 147 2 9,712.6 21.1% 62 2 59,752.6 31.6% 28 3 6,307.7 13.7% 78 3 55,106.1 29.2% 157 4 5,536.9 12.0% 40 4 49,229.6 26.1% 18 5 3,192.7 6.9% 8 5 JP 46,918.3 24.8% 13 6 2,537.3 5.5% 5 6 45,560.5 24.1% 8 7 2,105.8 4.6% 38 7 KP
Slide 33: Investment banking data
2006 3 2002 3 2003 3 2004 3 2005 3 1Q 2Q 3Q 48.5 52.0 105.9 144.7 38.8 64.3 104.3 15% 16% 10% 8% 7% 7% 7% 32.4 33.2 31.9 33.2 8.8 11.4 14.5 19.3 14.1 19.3 21.1 4.9 6.6 9.3 19% 20% 16% 17% 18% 19% 23% 56.1 68.1 74.4 80.1 19.8 22.2 20.2 15% 15% 16% 18% 11% 10% 9% 966 1,129 1,235 1,361 365 326 292 15%
Slide 34: Value at Risk (VaR)
VaR VaR 10 2.33 99 05.4.1 05.12.31 1 7.1 3.8 5.4 10 2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 2.0 1.5 3.3 3.0 4.2 3.9 4.4 2.3 2.3 2.0 2.8 3.3 3.1 3.7 0.2 0.2 0.5 0.7 1.0 1.0 1.3 4.5 4.0 5.8 6.5 8.5 8.0 9.4 -1.2 -0.9 -1.9 -2.4 -2.9 -2.7 -3.4 VaR 3.3 3.1 3.9 4.1 5.5 5.3 6.0 3
Slide 35: Employee data
2002 3 2003 3 2004 3 2005 3 2005 6 2005 9 2005 12 9,697 9,258 9,148 9,190 9,604 9,508 9,395 2,177 1,986 1,915 1,875 1,984 1,930 2,016 1,381 1,389 1,403 1,535 1,524 1,535 1,529 827 797 866 1,026 1,069 1,038 1,039 468 616 655 718 746 757 769 14,550 14,046 13,987 14,344 14,927 14,768 14,748 * 35 35
Slide 36: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com 36 36