Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2014/15 Earnings Presentation
38 slides from Nomura's earnings presentation, Nov 5, 2014
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 2014 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), the second quarter, year ending March 2015
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 5, 2014 By: /s/ Hajime Ikeda Hajime Ikeda Managi
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter, year ending March 2015
Table of Contents Consolidated Second (US Nomura October © Nomura GAAP) quarter, 2014 Holdings, Results year Inc. ending of Operations March 2015
Slide 5: Presentation Outline
Table of Contents Executive Presentation Outline Overview Business Non-interest Robust Funding Financial Value Main Consolidated segment Segment Retail Asset Wholesale Number NOMURArevenue Management at (p. related financial risk of and “Other” segment Supplement 5-6) of summary (p. related employee
Slide 6: Executive Summary
Table of Contents Executive Highlights Second Continued FY2014/15 Net ROE2: EPS3: Profitable Strong Solid included Shareholder Interim Launched capital Of exercised Total Income Group 86.9 113.2 72.9 51.7 Three 113.0 71.4 84.4 Retail FY2013/14 45.6 62.1 1Q (1) 2(3) (4) on which, Net 2Q revenue: inco
Slide 7: Overview of Financial Results
Table of Contents Overview (billions Highlights FY2014/15 QoQ 2Q Non-interest Income Net EPS2 ROE3 (1) (2) 3(3) 1H revenue income1 YoY NOMURA14.15 8.4% before ofYoY of Net yen, FY2014/15 yen 5.7% 373.8 expenses results 52.9 income Dilutedexcept +169% +166% +1% net Calculated 299.8 attributable taxes
Slide 8: Business segment results
Table of Contents Business FY2014/15 QoQ 2Q revenue Wholesale Net income before taxes Subtotal Other Unrealized equity Income Additional 2) (1) corporate 4NOMURA Booked All 1H Retail revenue YoY Wholesale 1) 1), securities new Asset Retail before Asset 330.2 68.9 41.0 segment 2) title YoY 117.9 full
Slide 9: Retail segment results
Table of Contents Retail FY2013/14 QoQ stocks, Net and Non-interest –Income Total (billions Stocks 0F 1,000 2,000 3,000 4,000 5,000 2Q (1) Y2013/14 (2)Retail NISA Net 5(3) 3Q revenue securities1 Total YoY sales2 inflows Stocks: –Solid –IPO/PO –Sales Bonds 4Q investment before account client Investme
Slide 10: Retail: Initiatives and discretionary investments
Table of Contents Retail: Discretionary 80.9 1.1 9.2 19.2 34.3 69.4 Investment 50.0 50.3 59.6 100.0 101.3 1.8 34.8 (1) 6(2) 8.4 NOMURA78.1 43.8 95.1 Initiatives Continued Renewed through –Recurring investments1 –Solid following Y15.2bn Recurring 30.0 10.5 13.1 20.0 FY2013/14 0.0 10.0 2Q (Month 3Q29.
Slide 11: Asset Management
Table of Contents Asset NOMURA (billions QoQ Non-interest (trillions 40.3 37.3 FY2013/14 Sep Key Net Assets trusts Income Inflows 2Q Nomura Sales with AuM Investment Expansion Continued Expanded Started Hong Tapping In ETF6; (1) duplications schemes JPX-Nikkei 7traded addition Total 3Q inflows reven
Slide 12: Asset Management: Growth in investment trust business
Table of Contents Asset NOMURA Assets (trillions 40.3 50.0 40.0 10.9 30.0 10.0 20.0 0.0 Investment (billions 1,200 873 600 900 0-300 -900 -600 2Q Nomura 24.0% 23.6% 26.0% share2 FY2013/14 16.0% 18.0% 20.0% 22.0% Sep Growth investment AuM 405 Management Note: fund by 232 165 128 100 (Nomura business
Slide 13: Wholesale
Table of Contents Wholesale NOMURA QoQ Investment Non-interest (billions 45.9 200.0 150.0 47.7 100.0 24.5 58.8 50.0 FY2013/14 0.0 2Q Key Net Income Solid Revenues in Higher specific Regional Japan Global Won #1 EMEA Rates In declined Americas Strong Equity AEJ Best reported (1) corporate (2) 9(3)Jap
Slide 14: Wholesale: Global Markets
Table of Contents Wholesale: Nomura (billions 159.6 QoQ 65.8 93.8 FY2013/14 2Q Key Strong offsetting Fixed Net Stronger Solid slower ?Net Equities Revenues Derivatives FY2014/15 YoY Global Markets 0% Japan AEJ EMEA Americas aAmericas: EMEA: AEJ: saw Japan: 10strong 3Q ~revenue: revenue apoints saw 5
Slide 15: Wholesale: Investment Banking
Table of Contents Wholesale: Nomura 45.8 Other 2.2 0.4 0.0 29.5 23.3 FY2013/14 -0.4 2Q Key Net Investment Revenues Japan contributed Retained DCM Growth Despite International Financial M&A-driven revenues Won #1 Acquisition (deal M&A Oji Itochu/CP ($1.9bn) (NZ$1bn) Finance Panasonic/Ficosa Caixa (un
Slide 16: Nomura's Non-interest expenses
Table of Contents Nomura Full (billions 1,575.9 development related processing communications floor benefits Excluding (Reference) Real FY2013/14 FY2012/13 2Q Information Occupancy Other Total Key Non-interest (-6% Compensation significantly costs expenses Commissions —- Business increased advertisi
Slide 17: Robust Balance Sheet
Table of Contents Robust Nomura Balance Mar Shareholders’ Gross (net) Liquidity (Basel RWA3 Tier Total Risk (trillions 20.0 15.0 10.0 5.0 0.0 applied balance Level (estimate) (billions 800 Net 600 17% 0400 200 10% FY2013/14 Sep (1) (2) 0% (3) (4) 13 Net 5.0% Fully leverage1 Level 30% 19% 12% Dec 2Ju
Slide 18: Funding and Liquidity
Table of Contents Funding Nomura Highly 83% structure marked-to-market trading repos currency) structural Liquidity Y5.8trn, Maintain portfolio for over Balance (As Assets More long-term Diversified Trading and due 14% subordinated) Long-term market MTN/Yen, 3Short-term 14 Cashadditional long-term r
Slide 19: Financial Supplement
Table of Contents Financial Supplement Nomura
Slide 20: Consolidated Balance Sheets
Table of Contents Consolidated Nomura (billions 2014 Assets Trading 11,047 Long-term equity Noncontrolling Total (1) 16 2014 cash payables loans collateralized trading other NHI assets investments Liabilities 10,883 liabilities ofand shareholders’ Including (Decrease) borrowings assets and yen) 43,5
Slide 21: Value at Risk
Table of Contents ValueMar Nomura Definition 99% 1-day Inter-product (billions Mar Equity Interest Foreign Sub-total Diversification VaR 17 5.1 confidence time at1.3 rate exchange 5.2 risk of Sep 8.1 ?From 1.3 horizon yen) 5.5 5.0 8.0 price Dec 1.9 benefit 8.6 3.9 FY2012/13 level 8.7 April 1.9 3.6 M
Slide 22: Consolidated Financial Highlights
Table of Contents Consolidated Nomura Full (billions 8.9% 250 attributable to ROE(%) 100 3% 050 FY2013/14 FY2012/13 2Q Income Net (“NHI”) ROE Basic-Net Diluted-Net shareholders Total (1) 180% NHI 20 3Q 3.2% revenue income 9% 40 year (%)1 NHI 8.9% 019.9 4Q 38.1 6% 0% before 100 shareholders of 107.2
Slide 23: Consolidated Income
Table of Contents Consolidated Nomura Full (billions 2Q Commissions Revenue Fees Asset Gain Other Total Interest Non-interest Income Net 19 3Q gain revenue income year from (loss) revenue management 708.8 4Q and expense before of on Quarter investment 1Q on yen) attributable trading dividends 179.5
Slide 24: Main Revenue Items
Table of Contents Main Nomura Full (billions 2Q Stock Commissions Equity Bond Fees investment Other Asset and fees Total 20 3Q portfolio Custodial year from 359.1 62.4 141.0 revenue underwriting management brokerage 32.6 7.7 underwriting 4Qof Quarter 12.0 91.3 1Q 32.1 banking yen) 474.6 167.2 servic
Slide 25: Consolidated Business Segment and Geographic Information
Table of Contents Consolidated Adjustment FY2013/14 FY2012/13 Retail Asset Wholesale Three Other Segments Unrealized securities Geographic Full (billions 2Q Americas Europe Asia Subtotal Japan Income (1) the 21 Geographic legal 3Qyear and Management 6.6 317.2 Business 100.6 4Q -93.1 before -79.4 of
Slide 26: Segment Other
Table of Contents Segment Full (billions 40 20 20.0 34.2 2.6 06.6 -3.5 -20 FY2012/13 2Q Net hedging Realized securities Equity Corporate Others Income 22020 40 3Q 2.5 -20 gain -3.7 year -27.5 in 4Q (loss) transactions of (loss) gain “Other” Quarter earnings held items 1Q yen) FY2013/14 8.4 on before
Slide 27: Retail Financial Data
Table of Contents Full3Q (billions 2Q Commissions Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales base) Retail (1) 23 interest revenue year from 189.1 credit of investment investment related foreign 4Q before investment JGBs of Quarter distribution investm
Slide 28: Retail Commissions
Table of Contents Retail Full (billions 180 150 120 commissions 0distribution 30 10 60 trusts FY2013/14 FY2012/13 2Q Stock Commissions (1) 240 3Q 40 year brokerage related 4Qof Quarter Nomura 1Q yen) FY2014/15 FY2013/14 ofdata for 2Q investment (billions 30 commissions distribution (2) Securities. Q
Slide 29: Retail Client Assets
Table of Contents Retail (trillions 100 99.3 Other 0F Mar Equities Foreign Domestic Stock Bond Overseas Other2 Total (1) Y2012/13 (2) 25 91.7 Mar 83.8 investment 83.8 investment related client 2.7 currency 46.7 of 90.9 Sep mutual bonds bonds1 91.7 2.7 yen) FY2013/14 assets 53.2 Dec data 96.0 2.4 90.
Slide 30: Retail Net Inflows of Cash and Securities
Table of Contents Retail Net Full (billions 1,500 1,000 1,076 805 500 0145 -366 385 FY2012/13 2Q (1) 26-500 3Q inflows 0year 1,000 500 related 4Qof Quarter 473 Cash 1Q yen) FY2013/14 ofdata 2Q 485 cash and (billions (4) and securities FY2013/14 securities1 of yen) inflows FY2014/15 minus outflows, e
Slide 31: Retail Accounts and Transactions
Table of Contents Retail Number Mar Accounts Equity Nomura Net Full (Thousands) FY2012/13 2Q New IT No. Transaction (1) 27 share1 3Q & of year Mar Individual individual related Call orders holding 4Qof Home Sep Quarter with Percentage 1Q accounts FY2013/14 value FY2012/13 FY2013/14 55% Dec data 2Q b
Slide 32: Asset Management Financial Data
Table of Contents Asset Full (billions 2Q Net Non-interest Income Total (trillions 40.3 40.0 32.9 30.8 AuM (gross) FY2012/13 0.0 10.0 (net) Mar (1) (2) 28 Total 3Q revenue year Mar 40.6 36.1 33.0 30.0 assets 1Management 2 4Q 30.0 20.0 before of assets of Sep Quarter 42.7 38.2 34.8 30.8 Net 1Q yen) y
Slide 33: Asset Management Assets under Management
Table of Contents Asset Full (billions 26.5 Investment 9.6 business (gross)1 Domestic (trillions FY12/13 Mar Technologies Management Nomura Group Assets (1) (2) 29 Total Net 9.8 year Mar 28.4 Management company under 10.5 after Asset Funds Corporate Private Net of business Investment assets of FY13/
Slide 34: Wholesale Income Breakdown
Table of Contents Wholesale Non-interest Income Breakdown Full (billions FY2012/13 2Q Fixed Equities1 Global Other Net Investment (1) 30 3Q revenue year 12.4 Income1 4Q Markets before of Quarter 172.8 Fixed 1Q related 18.0 yen) Banking(Net) Banking Banking(Gross) FY2013/14 of 644.9 expenses 2Q Whole
Slide 35: Wholesale Private Equity Investments
Table of Contents Wholesale Private (billions 150 104.6 Firma) 0F Mar Japan Europe Asia Sub Terra Total 31 Y2012/13 Total Mar 100 2.0 104.6 Firma 102.1 50equity 52.7 (excluding 1.9 of Sep 76.5 related 8.1 yen) 57.2 FY2013/14 28.1 1.8 Dec related 51.7 32.6 1.9 102.1 24.6 data Mar Terra 10.5 76.4 1.9
Slide 36: Number of Employees
Table of Contents Number FY2012/13 Mar Japan Europe Americas Asia-Pacific1 Total (1) 32 Mar 27,956 (excluding (FA) 3,618 of Sep 2,271 Includes employees 1,907 FY2013/14 27,670 Dec 3,461 6,037 2,281 FA) 1,888 Mar Powai 3,459 5,891 28,024 14,123 2,243 Jun FY2013/14 1,923 3,456 5,945 office Sep 27,832
Slide 37: Disclaimer
Table of Contents Disclaimer Nothing including Nomura according warranty, errors All retrieval permission This meaning the historical control. not more Commission risk conditions, security Forward-looking statement The offering rights place factors information consolidated document fully orActual va
Slide 38: Nomura Holdings, Inc. www.nomura.com
Table of Contents Nomura Holdings, Inc. www.nomura.com