Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2003 Earnings Presentation
34 slides from Nomura's earnings presentation, Jan 31, 2003
Slide 1: Consolidated Results of Operations (US GAAP) Third quarter, fiscal year ended March 2003
Consolidated Results of Operations (US GAAP) Third quarter, fiscal year ended March 2003 Nomura Holdings, Inc. January 2003 This is a summary of a presentation on consolidated results of operations for the third quarter, fiscal year ended March 2003. Date: 31 January, 2003 (Friday) Speaker: Koichi I
Slide 2: Outline of the Presentation
Outline of the Presentation ! Financial Summary ! Review of Businesses " Segment Information " Domestic Retail " Global Wholesale " Asset Management " Non-interest Expenses ! Appendix 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2003 Nomura Holdings, Inc. All rights re
Slide 3: Consolidated Financial Summary
Consolidated Financial Summary Nine months ended December 31, 2002 " Net revenue 415.6 (up 10%*) " Non-interest expenses 355.9 (down 26%*) Results for the " Income before income taxes 59.6 (N.M.) Nine Months " Net income 146.0 (N.M.) (billions of yen) " Total assets 19,451.7 (up 1,693.4**) " Total s
Slide 4: Review of Businesses
Review of Businesses ! Segment Information (P5) ! Domestic Retail (P6-8) ! Global Wholesale (P9-12) ! Asset Management (P13-14) ! Non-interest Expenses (P15-16) 4
Slide 5: Segment Information
Segment Information Income before Income Taxes by Segment (Billions of yen) 1Q 145 143.5 2Q 120 3Q 02.3 (3/4) 95 TOTAL Down 4% (Nine-month 70 69.9 67.2 total) 23.0 21.7 Up 145% Down 64% 45 9.0 34.4 24.6 19.1 20 8.0 14.1 15.4 36.5 1.4 22.3 2.7 9.7 7.6 10.4 13.9 2.2 3.5 1.0 4.9 1.3 -4.3 1.1 -5 FY02.3
Slide 6: Domestic Retail (1)
Domestic Retail (1)* Commissions (26.8 billion yen, up 16%) Net Revenue ! Stock Brokerage Commissions (13.5 billion yen, down 6%) " Individual Equity Agency Transaction Value** (monthly average) (Billions of yen) # 5.2 trillion yen, up 33% 80 Up 21% 70.3 ! Commissions for Investment Trust Distributi
Slide 7: Domestic Retail (2) Revenue Breakdown
Domestic Retail (2) Revenue Breakdown (approx figs.) 100% 3% 4% 14% 10% 90% 15% 24% 30% 80% 11% 24% 15% 70% 13% 16% 27% 60% 29% 50% 35% 40% 52% 40% 30% 48% 20% 38% 28% 10% 15% 10% 0% FY03.3 4-12 FY00.3 FY01.3 FY02.3 FY03.3 3Q (9 months) Variable annuity insurance - - 0% 3% 4% Investment trusts (admi
Slide 8: Domestic Retail (3) Client Assets / Net Asset Accumulation
Domestic Retail (3) Client Assets / Net Asset Accumulation (excluding financial institutions) ! Client Assets (Domestic Retail Division, ! Net Asset Accumulation (monthly excluding financial institutions) average) Equities Bonds (including CB, WB) Stock investment trusts Bond investment trusts (Bill
Slide 9: Global Wholesale (1) Fixed Income
Global Wholesale (1) Fixed Income Point ! Domestic Bonds $ Japan Highway Public Corporation FRN - 65 billion yen Net Revenue ! Securitized Products $ The Government Housing Loan Corporation RMBS (Billions of yen) (joint lead) 150 billion yen 45 $ Daiwa Bank RMBS 33 billion yen Up 113 % 41.6 ! Foreig
Slide 10: Global Wholesale (2) Equity
Global Wholesale (2) Equity Point ! Sluggish Equity Market Net Revenue $ Equity Agency Transaction Value (monthly average) 27.5 trillion yen, down 12% YOY (Billions of yen) $ Decrease in block trades due to share price decline 35 ! Net Gain on Equity Trading (Nomura Securities) 31.3 30 25.6 Down 30%
Slide 11: Global Wholesale (3) Investment Banking
Global Wholesale (3) Investment Banking Point Net Revenue ! IPO, PO* (Billions of yen) $ IPO Market: 67.2 billion yen, down 77% YOY Nomura: 7.9 billion yen, down 96% YOY 35 32.3 $ PO Market: 230.5 billion yen, up 260% YOY 30 Nomura: 134.1 billion yen, up 1390% YOY Down 54% $ Major Issues 25 " Dentsu
Slide 12: Global Wholesale (4) Merchant Banking
Global Wholesale (4) Merchant Banking* Point ! New Investments Net Revenue $ Golf Course Revival Fund (Billions of yen) $ Misawa Resort 40 $ Raicho Fund (aims to invest in mould and die 33.9 35 manufacturers with sophisticated production capabilities) ! Exposure in Merchant Banking Business 30 $ Ter
Slide 13: Asset Management (1)
Asset Management (1) Point ! New Funds Net Revenue $ Nomura Short-Term Interest Fund (Oct.-Dec.) Total - 31 billion yen (Billions of yen) ! Assets Under Management of NCRAM $ Dec. 31, 2001 - US$2.6 billion 14 $ Dec. 31, 2002 - US$4.4 billion (up 72% YOY) 12.1 12 Down 25% 11.8 ! Assets Under Manageme
Slide 14: Asset Management (2)
Asset Management (2) Assets Under Management (NAM) Market Share (NAM) (Trillions of yen) 25 Stock investment trusts Bond investment trusts Bond investment trusts Investment advisory Other Total public investment trusts 21.0 45% Stock investment trusts 19.9 0.2 40% 40% 20 0.1 39% 39% 18.2 40% 4.9 0.2
Slide 15: Non-Interest Expenses (1)
Non-Interest Expenses* (1) Point (Billions of yen) 180 166.0 ! Compensation and Benefits 59.5 billion yen, up 1% YOY 150 Down 4% ! Information Processing and Communications 120 117.7 113.2 18.8 billion yen, down 9% YOY 90 ! Business and Development Expenses 4.8 billion yen, down 11% YOY 60 ! Other E
Slide 16: Non-Interest Expenses (2)
Non-Interest Expenses (2) !Compensation and Benefits* $ Fixed-type expenses: 35.0 billion yen (down 4% on FY02.3 quarterly average**) $ Variable-type expenses: 24.5 billion yen (down 32% on FY02 quarterly average**) Compensation and Benefits*** (Billions of yen) 45 40.4 40 36.7 36.6 34.2 35.3 35.0 3
Slide 17: Appendix
Appendix • Revenue and Income by Business Segment (P18-19) • Global Wholesale (Revenue and Income by Business Line, Quarterly Base) (P20) • Major Differences (Segment / Income Statement) (P21) • Revenue (P22-25) • Non-interest Expenses (P26) • Client Assets (P27) • Number of Accounts (P28) • Seconda
Slide 18: Revenue and Income by Business Segment (1) (Nine-month Base)
Revenue and Income by Business Segment (1) (Nine-month Base) Units: Millions of yen Domestic Retail FY02.3 FY03.3 FY02.3 (3/4) 4-12 4-12 Non-interest revenue 168,983 191,938 169,617 Net-interest revenue 2,412 2,119 2,212 Net revenue 171,395 194,057 171,829 Non-interest expenses 157,330 159,609 156,4
Slide 19: Revenue and Income by Business Segment (2) (Quarterly Base)
Revenue and Income by Business Segment (2) (Quarterly Base) Units: Millions of yen Domestic Retail FY02.3 FY03.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q Non-interest revenue 60,953 50,806 57,224 57,172 66,436 56,136 69,366 Net-interest revenue 1,076 467 870 537 599 605 915 Net revenue 62,029 51,274 58,091 57,710 67,03
Slide 20: Global Wholesale (Revenue and Income by Business Line)
Global Wholesale (Revenue and Income by Business Line, Quarterly Base) Units: Millions of yen Fixed Income FY02.3 FY03.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net revenue 20,727 23,175 19,549 27,302 43,887 32,476 41,550 Non-interest expenses 15,450 16,768 15,648 18,873 18,944 16,334 17,605 Income before income taxes
Slide 21: Major Differences (Segment / Income Statement)
Major Differences (Segment / Income Statement) (FY03.3 Apr.-Dec) Total Income before Income Taxes for 3 Business Segments: 105.1billion yen Gain on non-designated hedging instrument 0.3 billion yen (Loss)/gain on investment securities 5.2 billion yen Equity in (losses)/earnings of affiliates -0.1 bi
Slide 22: Revenue (1) Commissions
Revenue (1) (Commissions) (Billions of yen) (Billions of yen) Up 9% 50 120 115.1 46.1 105.2 105.0 39.6 100 40 34.8 34.6 34.7 34.3 31.0 80 30 60 20 40 10 20 0 FY 02.3 FY 02.3 FY 02.3 FY 02.3 FY 03.3 FY 03.3 FY 03.3 0 FY02.3 (4-12) FY03.3 (4-12) FY02.3 (3/4) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 105.2 115.1 105.
Slide 23: Revenue (2) Fees from Investment Banking
Revenue (2) (Fees from Investment Banking) (Billions of yen) 60 Down 10% 56.7 56.4 (Billions of yen) 50.9 25 22.9 50 19.6 20 18.6 18.3 16.9 40 15.6 15 14.1 30 10 20 5 10 0 FY 02.3 FY 02.3 FY 02.3 FY 02.3 FY 03.3 FY 03.3 FY 03.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0 FY 02.3(4-12) FY 03.3(4-12) FY 02.3(3/4) Total 14
Slide 24: Revenue (3) Asset Management and Portfolio Service Fees
Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) (Billions of yen) 35 90 Down 23% 83.1 82.5 29.6 80 30 27.8 26.9 25.7 70 24.2 63.6 25 21.9 60 20 50 17.5 40 15 30 10 20 5 10 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 0 FY02.3(4-12) FY03.3(4-12) FY02.3(3/4) 1Q 2Q 3Q
Slide 25: Revenue (4) Net Gain on Trading / Net Interest Revenue
Revenue (4) (Net Gain on Trading / Net Interest Revenue*) (Billions of yen) (Billions of yen) 175 169.3 280 263.1 260 150 240 UP 13% 220 204.9 125 200 181.5 180 100 88.7 160 81.5 66.6 140 75 69.1 56.8 120 50 23.7 100 80 25 60 40 0 20 0 -25 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 -20 FY02.3(
Slide 26: Non-interest Expenses
Non-interest Expenses* (Billions of yen) (Billions of yen) 498.0 250 239.4 500 478.9 Down 8%** 450 200 185.1 400 355.9 350 150 300 124.3 121.8 118.5 117.7 113.2 250 100 200 150 50 100 50 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 0 FY02.3(4-12) FY03.3(4-12) FY02.3(3/4) 1Q 2Q 3Q 4Q 1Q 2Q 3Q T
Slide 27: Client Assets (trillions of yen)
Client Assets (trillions of yen) Nomura Securities Mar. 00 Jun. 00 Sep. 00 Dec. 00 Mar. 01 Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Equity 36.4 34.8 31.6 27.5 28.3 28.9 24.9 24.8 25.1 24.9 23.6 22.3 Bonds 12.8 12.3 12.4 12.3 12.9 12.3 12.8 13.3 13.7 14.9 15.4 15.4 Stock investment tru
Slide 28: Number of Accounts
Number of Accounts (thousands of accounts) Nomura Home Trade (online trading accounts) Mar.00 Jun.00 Sep.00 Dec.00 Mar.01 Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 188 283 349 461 584 686 778 860 936 1,005 1,079 1,114 IT Share FY01.3 FY02.3 FY03.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q No. of order
Slide 29: Secondary Market Share Data
Secondary Market Share Data Market units: trillions of yen Individual Equity Agency Transactions (monthly average) FY01.3 FY02.3 FY03.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Market 6.3 5.1 3.7 3.7 4.9 3.3 3.9 4.0 5.2 3.9 5.2 Nomura's share 25% 21% 19% 16% 16% 16% 16% 13% 20% 16% 17% Off-floor/Off-exchang
Slide 30: Primary Market Share Data (Value Base)
Primary Market Share Data (Value Base) Straight Bonds * FY02.3 FY03.3 01.4-6 01.4-9 01.4-12 01.4-02.3 02.4-6 02.4-9 02.4-12 Nomura's Share 19% 19% 19% 21% 20% 22% 22% Euro-Yen Bonds ** FY02.3 FY03.3 01.4-6 01.4-9 01.4-12 01.4-02.3 02.4-6 02.4-9 02.4-12 Nomura's Share 27% 23% 22% 28% 35% 24% 20% ** S
Slide 31: Assets Under Management (NAM) / Domestic Distribution Volume of Investment Trusts
Assets Under Management (NAM) / Domestic Distribution Volume of Investment Trusts Assets Under Management (NAM) (Trillions of yen) Mar. 00 Jun. 00 Sep. 00 Dec. 00 Mar. 01 Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Stock investment trusts 3.5 3.4 3.2 2.8 2.6 2.7 2.4 2.9 3.2 3.6 3.3 3.3 B
Slide 32: Value at Risk
Value at Risk ! Definition ! From Apr. 2001 to Dec. 2002 " 99% confidence level " Maximum: 4.5 billion yen " Minimum: 1.7 billion yen " 1-day time horizon for our trading portfolio " Average: 3.0 billion yen " Inter-product price fluctuations considered (Billions of yen) End of Month Mar.00 Sep.00 M
Slide 33: Number of Employees
Number of Employees Mar. 00 Mar.01 Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Asia/Oceania 488 486 473 476 464 468 469 462 461 Americas 983 835 874 893 881 827 769 753 752 Europe 1,319 1,370 1,380 1,449 1,430 1,381 1,346 1,352 1,343 Japan (FA, SA) 2,173 2,195 2,260 2,192 2,130 2,177 2,1
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura www.nomura.com nomura.com 34 34