Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2018/19 Earnings Presentation
33 slides from Nomura's earnings presentation, July 2018
Slide 1: Consolidated Results of Operations First quarter, year ending March 2019
Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2019 (US GAAP) Nomura Holdings, Inc. July 2018 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2) Consolidated balance sheet (p. 16) Overview of results (p. 3) Value at risk (p. 17) Business segment results (p. 4) Consolidated financial highlights (p. 18) Retail (p. 5-6) Consolidated income (p. 19) Asset Managem
Slide 3: Executive summary
Executive summary Income before income taxes and net FY2018/19 1Q highlights income 1 Retail and Asset Management delivered resilient performance, while a slowdown in Firm-wide (billions of yen) Income before income taxes Wholesale, mainly due to Fixed Income, and a loss booked in Other led to a d
Slide 4: Overview of results
Overview of results Highlights (billions of yen, except EPS and ROE) FY2018/19 FY2017/18 FY2017/18 QoQ YoY 1Q 4Q 1Q Net revenue 272.0 378.0 -28% 360.8 -25% Non-interest expenses 258.4 331.1 -22% 283.4 -9% Income before income taxes 13.6 46.9 -71% 77.4 -82% Net income1 5.2 22.7 -77% 56.9 -91% EPS 2 Y
Slide 5: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2018/19 FY2017/18 FY2017/18 QoQ YoY 1Q 4Q 1Q Net revenue Retail 92.8 98.2 -5% 101.7 -9% Asset Management 26.1 27.3 -5% 28.1 -7% Wholesale 137.3 211.4 -35% 179.3 -23% Subtotal 256.2 336.9 -24% 309.1 -17% Ot
Slide 6: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y92.8bn (-5% QoQ; -9% YoY) Income before income taxes: Y19.9bn (-7% QoQ; -20% YoY) FY2017/18 FY18/19 QoQ YoY Net revenue and income before income taxes both down QoQ 1Q 2Q 3Q 4Q 1Q – Retail clients rema
Slide 7: Retail: Steady growth in recurring revenue
Retail: Steady growth in recurring revenue Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs) Annualized recurring revenue of Y90.4bn up marginally QoQ 31% – Discretionary investments AuM increased driven by net inflows 10
Slide 8: Asset Management
Asset Management Net revenue and income before income taxes1 Key points (billions of yen) Net revenue: Y26.1bn (-5% QoQ; -7% YoY) FY2017/18 FY18/19 Income before income taxes: Y10.3bn (-9% QoQ; -24% YoY) QoQ YoY − Solid business performance: Continued inflows combined with market 1Q 2Q 3Q 4Q 1Q
Slide 9: Asset Management: UCITS fund client base expanding and AuM growing
Asset Management: UCITS fund client base expanding and AuM growing Nomura Asset Management public investment trust market Flow of funds1 share 2 (billions of yen) Investment trust business Investment advisory business 28.0% 27.4% 1,404 27.3% 1,500 26.9% 248 982 1,000 26.4% 718 26.2% 96 500 230 1,156
Slide 10: Wholesale
Wholesale Net revenue 1 and income (loss) before income taxes2 Key points (billions of yen) Net revenue: Y137.3bn (-35% QoQ; -23% YoY) Loss before income taxes: -Y7.4bn FY2017/18 FY18/19 QoQ YoY 1Q 2Q 3Q 4Q 1Q Subdued revenue performance − Fixed Income revenues declined QoQ on the back of unce
Slide 11: Wholesale: Global Markets
Wholesale: Global Markets Net revenue 1,2 FY2018/19 1Q net revenue by region (billions of yen) Equities YoY QoQ Fixed Income 180.0 Global Markets Global 152.2 Markets Fixed 133.3 137.6 QoQ Equities Income 84.4 -38% Americas 58.5 112.2 57.9 60.9 YoY 54.5 -26% EMEA 93.8 95.7 75.5 76.7 57.7 AEJ FY2017/
Slide 12: Wholesale: Investment Banking
Wholesale: Investment Banking Cross-border deals Net revenue 1 Cross-border mandates (billions of yen) 31.4 Closer cross-regional collaboration has resulted in multiple high- 28.1 profile mandates including largest-ever cross-border acquisition 27.1 25.6 25.1 QoQ by a Japanese company (Takeda acqu
Slide 13: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen) Non-interest expenses: Y258.4bn 1,500 (-22% QoQ) 400 331.1 Other 1,168.8 1,080.4 Group expenses declined mainly in Other 283.4 285.9 300 268.5 258.4 as a result of the deconsolidation of Asahi Business develop
Slide 14: Robust financial position
Robust financial position Balance sheet related indicators1 and capital ratios RWA and CET 1 capital ratio4 (trillions of yen) RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) Mar 2018 Jun 2018 20.0 18.1% 17.4% 17.3% 20.0% Total assets Y40.3trn Y42.8trn 16.5% 16.0% Shareholders’ equity Y2.
Slide 15: Funding and liquidity
Funding and liquidity Balance sheet (As of June 2018) Balance sheet structure Highly liquid, healthy balance sheet Assets Liabilities and equity structure Unsecured funding2 –79% of assets are highly liquid Approx. 80% of unsecured funding is trading and related assets that are long-term debt ma
Slide 16: Financial Supplement
Financial Supplement
Slide 17: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet1 (billions of yen) Mar 31, June 30, Increase Mar 31, June 30, Increase 2018 2018 (Decrease) 2018 2018 (Decrease) Assets Liabilities Total cash and cash deposits 2,959 3,060 101 Short-term borrowings 743 1,029 286 Total payables and deposits 3,568
Slide 18: Value at risk
Value at risk Definition From April 1, 2018, to June 30, 2018 (billions of yen) − 99% confidence level − Maximum: 6.1 − 1-day time horizon for outstanding portfolio − Minimum: 3.6 − Inter-product price fluctuations considered − Average: 4.7 (billions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/
Slide 19: Consolidated financial highlights
Consolidated financial highlights Full year Quarter (billions of yen) (billions of yen) 100 9.3% 10% 300 10% 8.7% 7.9% 8.1% 7.7% 7.9% Net income 8% 80 8% attributable to Nomura Holdings, 200 Inc. (''NHI'') 239.6 6% 60 88.0 6% shareholders 4% 40 4% ROE(%) 219.3 100 56.9 2% 20 51.9 2% 0.8% 22.7 5.2 0
Slide 20: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2017/18 FY2018/19 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Revenue Commissions 1 327.1 373.3 91.0 85.3 101.7 95.4 79.5 Fees from investment banking 92.6 101.7 22.7 27.1 29.3 22.6 24.0 Asset management and portfolio service fees 216.5 245.6 58.3 61.
Slide 21: Main revenue items
Main revenue items Full year Quarter FY2017/18 FY2018/19 (billions of yen) FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions 1 210.0 243.8 57.0 54.6 68.4 63.8 50.2 Other brokerage commissions 15.1 17.0 3.4 3.2 4.3 6.0 4.1 Commissions Commissions for distribution of investment trusts 75.
Slide 22: Consolidated results: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter FY2017/18 FY2018/19 (billions of yen) FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Retail 74.8 103.1 24.9 25.5 31.3 21.4 19.
Slide 23: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 80.0 56.4 50.4 60.0 37.6 40.0 13.6 17.3 20.0 0.0 -20.0 -11.2 -40.0 -25.0 1 2 1 2 3 4 5 FY2017/18 FY2018/19 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic -7.3 -6.5 -0.7 0.6 -8.0 1.7 -13.8 he
Slide 24: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/19 QoQ YoY 1Q 2Q 3Q 4Q 1Q Commissions 171.8 192.7 47.3 43.8 54.1 47.5 40.8 -14.2% -13.7% Of which, stock brokerage commission 62.8 82.2 18.0 17.2 25.4 21.7 16.8 -22.3% -6.2% Of which, commissions for dis
Slide 25: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 122.8 118.6 115.2 117.7 Other 111.9 117.7 120 107.7 Foreign investment trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency bonds 20 Equities 0 33 2 FY2016/17 FY2017/18 FY2017/18 FY2018/
Slide 26: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 1,000 1,000 500 500 0 0 -14 -37 -196 -115 -78 -306 -403 -500 -500 FY2017/18 FY2018/19 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q 1. Cash and securities inflows minus outflows, excluding regional
Slide 27: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2016/17 FY2017/18 FY2017/18 FY2018/19 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,363 5,318 5,342 5,328 5,326 5,318 5,318 Equity holding accounts 2,836 2,822 2,821 2,832 2,800 2,822 2,823 Online service accounts 1, 2 4,456 4,387 4,361
Slide 28: Asset Management related data (1)
Asset Management related data (1) Full year Quarter FY2017/18 FY2018/19 (billions of yen) FY2016/17 FY2017/18 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue1 99.4 127.3 28.1 35.4 36.5 27.3 26.1 -4.5% -7.1% Non-interest expenses 1 57.1 61.2 14.5 15.0 15.7 16.0 15.8 -1.3% 8.8% Income before income taxes 1 42.3 66
Slide 29: Asset Management related data (2)
Asset Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2017/18 FY2018/19 (billions of yen) FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Investment trusts business 1,590 3,131 316 886 773 1,156 263 of which ETFs 1,934 3,022 183 906 193 1,740 147 Investment advisory business 5
Slide 30: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2017/18 FY2018/19 FY2016/17 FY2017/18 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 739.3 715.3 179.3 159.0 165.6 211.4 137.3 -35.1% -23.4% Non-interest expenses 577.8 614.7 154.0 142.0 151.6 167.2 144.7 -13.4% -6.0% Income before income taxes 161.4
Slide 31: Number of employees
Number of employees FY2016/17 FY2017/18 FY2017/18 FY2018/19 Mar Mar Jun Sep Dec Mar Jun Japan 16,227 15,819 16,903 16,706 16,583 15,819 16,474 Europe 3,026 3,057 3,013 3,047 3,054 3,057 3,030 Americas 2,314 2,362 2,325 2,348 2,349 2,362 2,364 Asia and Oceania1 6,619 6,810 6,673 6,756 6,786 6,810 6,8
Slide 32: 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 sel
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com