Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Day (April 2016)
13 slides from Nomura's investor day presentation, Apr 27, 2016
Slide 1: Investor Day: FY2015/16 overview of results
Connecting Markets East & West Investor Day FY2015/16 overview of results Takumi Kitamura CFO Nomura Holdings, Inc. April 27, 2016 © Nomura
Slide 2: Executive summary
Executive summary FY2015/16 full year highlights Smooth start to year, but earning environment deteriorated in 2H (billions of yen) Income before income − Impacted by market dislocation from August and lower client activity taxes Net income − Retail and Wholesale performance slowed 221.1 − Asset M
Slide 3: Overview of results
Overview of results Highlights (billions of yen, except EPS and ROE) FY2015/16 FY2014/15 YoY Full year Full year Net revenue 1,395.7 1,604.2 -13% Non-interest expenses 1,230.5 1,257.4 -2% Income before income taxes 165.2 346.8 -52% Net income1 131.6 224.8 -41% EPS2 Y35.52 Y60.03 -41% ROE3 4.9% 8.6%
Slide 4: Income before income taxes
Income before income taxes (billions of yen) 346.8 -34.2 4.6 Retail Asset Management -66.8 Gain on changes to own and counterparty credit spreads (+8.3) Impact of settlement in legal Wholesale proceedings1, etc. -45.4 Unrealized loss -28.2 165.2 on investments -11.6 Three segment total: -96.4 in
Slide 5: Retail
Retail Retail revenues and Income before income taxes (billions of yen) Solid performance in 1H Net revenue Income before income taxes Sales of stocks and investment trusts slowed from August as market conditions deteriorated Continued to transform business model: Recurring revenue up 20% 476.
Slide 6: Asset Management
Asset Management Asset Management revenues and Income before income taxes (billions of yen) AuM growth drove net revenue to record high and income before income taxes to strongest level since the year ended March 2007 Net revenue Income before income taxes Significantly stronger inflows into ETF
Slide 7: Wholesale and Global Markets
Wholesale and Global Markets Wholesale revenues and Income before income taxes (billions of yen) Equities and Investment Banking reported stronger revenues Income before income taxes Fixed Income had challenging year, particularly in Spread Products Continued to control costs, but unable to of
Slide 8: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue Full year gross revenue flat YoY despite fee pool decline of over 10% (billions of yen) Driven by global business centered on Asia; Japan revenues at five-year high Slowdown in fixed income related businesses, but revenue growth in M&A, ECM and Solutions
Slide 9: Reduced cost base but market conditions rapidly deteriorated
Reduced cost base but market conditions rapidly deteriorated Wholesale revenues and expenses (USD basis) (millions of USD) Reduced cost base by about $2bn since 2011 8,000 FY2015/16 Wholesale costs down by 22% from four years Net revenue $7,519 ago Expenses 7,000 $7,049 But… FY2015/16 2H marke
Slide 10: Non-interest expenses
Non-interest expenses (billions of yen) 400 Other 1,500 329.6 318.0 316.7 1,257.4 1,230.5 303.3 Business development 292.5 300 expenses 1,200 Occupancy and related depreciation 900 200 Information processing and communications 600 Commissions and floor 100 brokerage 300 Compensation and benefits 0 0
Slide 11: Capital accumulation and controlling RWAs
Capital accumulation and controlling RWAs (billions of yen) +484 / +23% 2,576 Capital ratio increasing 2,459 Additional 2,314 Tier 1 2,093 108 Build up Tier 1 ratio Capital 2,468 CET1 CET1 ratio 16.1% 15.4% Mar-13 Mar-14 Mar-15 Mar-16 -1,553 / -9% 18,929 17,547 17,426 15,994 13.2% 12.9% Control RWAs
Slide 12: 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 13: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com