Nomura Holdings, Inc. · TSE:8604

Nomura — Q3 FY2006.3 Earnings Presentation

45 slides from Nomura's earnings presentation, Feb 1, 2006

  1. Slide 1: Form 6-K Report of Foreign Private Issuer

    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 February 2006. NOMURA HOLDINGS, INC. (Translation of re

  2. Slide 2: Information furnished on this form

    Table of Contents Information furnished on this form: EXHIBIT Exhibit Number 1. [Consolidated Results of Operations (US GAPP), third quarter, year ending March 2006]

  3. 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: February 1, 2006 By: /s/ TETSU OZAKI Tetsu Ozaki Senior M

  4. Slide 4: Consolidated Results of Operations (US GAAP), Third quarter, year ending March 2006

    Table of Contents NOMURA Consolidated Results of Operations (US GAAP) Third quarter, year ending March 2006 Nomura Holdings, Inc. January 2006

  5. Slide 5: Disclaimer

    Table of Contents 1. This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2006 Nomura Holdings, Inc. All rights reserved. 2. 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

  6. Slide 6: Outline

    Table of Contents Outline Presentation n Financial Highlights (p.4) n Supplementary Explanation to Consolidated Financial Figures (p.5) n Business Segment Highlights (p.6) n Domestic Retail (p.7) n Global Markets (p.8) n Global Investment Banking (p.9) n Global Merchant Banking (p.10) n Asset Manage

  7. Slide 7: Financial Highlights

    Table of Contents Financial Highlights ¨ Net revenue for the third quarter was 359.8 billion yen (+32% QoQ, +86% YoY) due to an increase in stock brokerage commissions, strong sales of investment trusts, and a rise in trading revenue. Income before income taxes was 187.1 billion yen (+59% QoQ, 3.8x

  8. Slide 8: Financial Highlights (notes and results table)

    * During the third quarter, Nomura Principal Finance Co., Ltd., a wholly-owned subsidiary of Nomura Holdings, reached agreements to sell its entire stake in Millennium Retailing and part of its stake in Wanbishi Archives during January 2006. As a result, unrealized gains in conjunction with these tr

  9. Slide 9: Supplementary Explanation to Consolidated Financial Figures

    Table of Contents Supplementary Explanation to Consolidated Financial Figures (1) Among “Effect of Consolidation/deconsolidation of Certain Private Equity Companies,” adjustment for the unrealized gains in association with agreements to sell MRG and WA shares (87.2 billion yen) (2) Among “Effect of

  10. Slide 10: Business Segment Highlights

    Table of Contents Business Segment Highlights n Total net revenue from all 5 business segments was 386.4 billion yen (+76% QoQ, 2.3x YoY), income before income taxes was 231.8 billion yen (2.8x QoQ, 5.3x YoY) n All five business segments once again posted increases in both net revenue and income bef

  11. Slide 11: Business Segment Highlights

    Appendix: Segment “Other” Income before Income Taxes: P20 * In accordance with fair value accounting guidelines, business segment totals for the three months ended December 31, 2005 include unrealized gains in conjunction with the agreements reached to sell stakes in Millennium Retailing and Wanbish

  12. Slide 12: Domestic Retail

    Table of Contents Domestic Retail Net revenue increased to 136.7 billion yen (+35% QoQ, +87% YoY), income before income taxes rose to 74.1 billion yen (+79% QoQ, 4.1x YoY). Client assets, including Financial Management Division assets, increased by 10 trillion yen during the quarter to 79.4 trillion

  13. Slide 13: Global Markets

    Table of Contents Global Markets Net revenue rose to 115.2 billion yen (+48% QoQ, 2.0x YoY), while income before income taxes increased to 60.9 billion yen (+93% QoQ, 4.7x YoY) ¨ Fixed Income net revenue jumped 48% QoQ to 54.1 billion yen on strong sales of structured bonds and higher trading revenu

  14. Slide 14: Global Investment Banking

    Table of Contents Global Investment Banking Net revenue rose to 35.3 billion yen (+73% QoQ, +74% YoY), income before income taxes surged to 23.3 billion yen (2.6x QoQ, 2.4x YoY). ¨ Served as lead manager for Sony Communication Network’s IPO and a public offering from Chiba Bank. Ranked No. 1 in Equi

  15. Slide 15: Global Merchant Banking

    Table of Contents Global Merchant Banking Net revenue of 80.1 billion yen (11.7x QoQ) and income before income taxes of 77.6 billion yen (16.6x QoQ) ¨ Nomura Principal Finance (NPF) reached agreement to sell shares owned in Millennium Retailing to Seven & I Holdings. (131.1 billion yen transaction s

  16. Slide 16: Asset Management

    Table of Contents Asset Management Net revenue increased to 16.4 billion yen (+19% QoQ, +33% YoY), income before income taxes rose to 5.5 billion yen (+39% QoQ, +60% YoY). Total assets under management rose 2.4 trillion yen from September 30, 2005 to 22.5 trillion yen. ¨ Newly launched funds (Nomura

  17. Slide 17: Non-interest Expenses (Business Segment Total)

    Table of Contents Non-interest Expenses (Business Segment Total) Non-interest expenses (business segment total) up to 154.5 billion yen (+12% QoQ, +25% YoY) ¨ Compensation and benefits rose 21% QoQ to 84.5 billion yen, primarily due to an increase in reserves for bonuses Note: All non-interest expen

  18. Slide 18: Appendix references

    Appendix: Effect of consolidation / deconsolidation of certain PE investee companies: P22 Number of employees: P35 12

  19. Slide 19: Appendix

    Table of Contents Appendix

  20. Slide 20: Net Income and ROE

    Table of Contents Net Income and ROE FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1Q-3Q Net income (lhs) 168.0 119.9 172.3 94.7 175.7 ROE (rhs) 11.1% 7.4% 10.1% 5.2% 12.1%* Net income per share (basic) 85.6 61.3 88.8 48.8 91.7 Shareholders’ equity per share 816.5 846.4 919.7 962.5 1,045.1 * Annualiz

  21. Slide 21: Consolidated Revenue

    Table of Contents Consolidated Revenue (billions of yen) Full Year 1Q-3Q Quarter FY2005.3 FY2006.3 FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1-3Q 1-3Q YoY 1Q 2Q 3Q QoQ Revenue Commissions 140.0 141.6 210.2 222.0 161.4 238.8 48% 55.2 77.5 106.2 37% Fees from investment banking 75.3 81.8 87.0 92.3

  22. Slide 22: Main Revenue Items

    Table of Contents Main Revenue Items (billions of yen) Full Year 1Q-3Q Quarter FY2005.3 FY2006.3 FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1-3Q 1-3Q 1Q 2Q 3Q QoQ Commissions Stock brokerage commissions (Domestic Retail) 61.7 48.2 92.1 103.0 75.7 109.3 20.8 34.6 53.9 56% Stock brokerage commission

  23. Slide 23: Adjustment of Consolidated Results and Segment Results

    Table of Contents Adjustment of Consolidated Results and Segment Results (billions of yen) Full Year 1Q-3Q Quarter FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2005.3 FY2006.3 YoY 1Q 2Q 3Q QoQ Segment Results Net revenue 741.8 602.8 729.5 709.0 507.6 777.6 53% 171.4 219.8 386.4 76% Non-interest ex

  24. Slide 24: Revenue by Segment

    Table of Contents Revenue by Segment (billions of yen) FY2005.3 FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1-3Q 1-3Q YoY Domestic Retail Net revenue 229.1 249.3 305.8 304.4 224.8 323.0 44% Non-interest expenses 208.6 213.6 226.2 223.2 163.2 177.2 9% Income before income taxes 20.5 35.7 79.5 81.2 6

  25. Slide 25: Revenue by Segment (Quarterly)

    Table of Contents Revenue by Segment (Quarterly) (billions of yen) FY2004.3 FY2005.3 FY2006.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY QoQ Domestic Retail Net revenue 75.0 75.6 75.4 79.8 87.0 64.8 73.0 79.6 84.8 101.4 136.7 87% 35% Non-interest expenses 54.2 56.9 55.3 59.8 53.3 54.9 55.0 60.0 54.5 60.0

  26. Slide 26: Segment Other Income before Income Taxes

    Table of Contents Segment “Other” Income before Income Taxes (billions of yen) Full Year 1Q-3Q Quarter FY2005.3 FY2006.3 FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1-3Q 1-3Q 1Q 2Q 3Q “Other” income before income taxes -143.4 -40.7 8.5 12.6 5.8 -10.5 8.2 -9.2 -9.6 Net gain/loss on trading related t

  27. Slide 27: Consolidated Balance Sheet

    Table of Contents Consolidated Balance Sheet (billions of yen) Mar. 31, 2005 Dec. 31, 2005 Assets Cash and cash deposits 1,047 1,503 Loans and receivables 1,221 1,846 Collateralized agreements 14,389 15,696 Trading assets and private equity investments 15,601 14,773 Other assets 2,231 2,303 Assets f

  28. Slide 28: Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies

    Table of Contents Effect of Consolidation/Deconsolidation of Certain Private Equity Investee Companies Non-interest Expenses (billions of yen) Full Year 1Q-3Q Quarter FY2005.3 FY2006.3 FY2006.3 FY2004.3 FY2005.3 1-3Q 1-3Q 1Q 2Q 3Q Compensation and benefits 259.3 275.0 197.6 234.3 72.6 73.8 87.9 Fixe

  29. Slide 29: Nomura Securities Client Assets

    Table of Contents Nomura Securities Client Assets Mar. 31, 2002 Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Jun. 30, 2005 Sep. 30, 2005 Dec. 31, 2005 Equities 25.1 21.6 35.9 40.0 41.9 48.9 57.9 Bonds 13.7 16.8 17.3 19.2 19.7 20.3 20.5 Stock investment trusts 2.7 2.4 3.3 3.9 4.3 4.9 5.7 Bond investment

  30. Slide 30: Domestic Retail Related Data (1)

    Table of Contents Domestic Retail Related Data (1) Full Year Quarter FY2006.3 Domestic Retail FY2002.3 FY2003.3 FY2004.3 FY2005.3 1Q 2Q 3Q Retail foreign currency bond sales (billions of yen) 1,354.0 2,284.7 1,990.0 1,154.4 304.8 340.7 268.6 Commissions for investment trusts distribution (billions o

  31. Slide 31: Domestic Retail Related Data (2)

    Table of Contents Domestic Retail Related Data (2) Client Assets* Domestic Retail Client Assets* and Financial Management Division Client Assets Mar. 31, 2002 Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Jun. 30, 2005 Sep. 30, 2005 Dec. 31, 2005 Domestic Retail client assets* 33.6 31.5 40.8 45.6 46.5 5

  32. Slide 32: Retail Client Assets

    Retail Client Assets* Mar. 31, 2002 Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Jun. 30, 2005 Sep. 30, 2005 Dec. 31, 2005 Equities 11.1 9.5 16.0 19.1 19.5 23.3 27.8 Foreign currency bonds 2.5 3.4 3.7 3.7 3.7 3.7 3.6 Domestic bonds** 4.2 5.0 6.1 7.5 7.7 7.9 8.3 Stock investment trusts 2.4 2.0 2.7 2.9 3

  33. Slide 33: Domestic Retail Related Data (3)

    Table of Contents Domestic Retail Related Data (3) Retail Net Asset Inflow* * Net Asset Inflow: Gap between inflow and outflow of assets 26

  34. Slide 34: Domestic Retail Related Data (4)

    Table of Contents Domestic Retail Related Data (4) Number of Accounts (thousands of accounts) FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2005.6 FY2005.9 FY2005.12 Nomura Home Trade (online trading accounts) 936 1,141 1,367 1,716 1,774 1,828 1,901 IT share* No. of orders 35% 36% 45% 48% 52% 53% 53% Transa

  35. Slide 35: Global Merchant Banking Related Data

    Table of Contents Global Merchant Banking Related Data Business Exposure 28

  36. Slide 36: Asset Management Related Data (1)

    Table of Contents Asset Management Related Data (1) Assets Under Management Total Assets under Management* * Total assets under management of Nomura Asset Management, Nomura Corporate Research and Asset Management, Nomura BlackRock Asset Management, Nomura Fund Research and Technologies, MAINTRUST (

  37. Slide 37: Nomura Asset Management Assets under Management

    Nomura Asset Management Assets under Management Mar. 31, 2002 Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Jun. 30, 2005 Sep. 30, 2005 Dec. 31, 2005 Public stock investment trusts 3.2 3.2 4.5 4.4 5.0 5.0 6.2 Public bond investment trusts 10.4 7.3 6.3 5.6 5.4 5.8 6.0 Privately placed investment trusts 0

  38. Slide 38: Asset Management Related Data (2)

    Table of Contents Asset Management Related Data (2) Investment Trusts Nomura Asset Management Domestic Public Investment Trust Market and Nomura Asset Management Market Share (trillions of yen) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, 2002 2003 2004 2005 2005 2005 2005 Nomura A

  39. Slide 39: Third Quarter Achievements

    Table of Contents Third Quarter Achievements Domestic Retail ¨ Sales of New Investment Trusts (as of 12/31/2005) ¨ Nomura Multi-currency Japan Stock Fund (launched 11/18/2005) 263.6 billion yen ¨ Fidelity Leveraged Company Stock Fund (launched 12/13/2005) 83.0 billion yen Global Market ¨ Large Inter

  40. Slide 40: League Tables

    Table of Contents League Tables Global Equity & Equity-related (Japan) Jan. 1, 2005 - Dec. 31, 2005 Proceeds Rank Bookrunner (USD m) Mkt. Share No. of Issues 1 Nomura 10,989.6 23.8% 114 2 Nikko Citigroup 9,712.6 21.1% 62 3 Daiwa Securities SMBC 6,307.7 13.7% 78 4 Mizuho Financial Group 5,536.9 12.0%

  41. Slide 41: League Tables (continued)

    Proceeds Rank Bookrunner (JPY m) Mkt. Share No. of Issues 1 Nomura 1,735,747 22.8% 99 2 Daiwa Securities SMBC 1,432,069 18.8% 86 3 Mizuho Securities 1,371,258 18.0% 82 4 Mitsubishi UFJ Securities 1,263,062 16.6% 65 5 Nikko Citigroup 987,287 12.9% 58 6 Goldman Sachs 319,864 4.2% 21 7 Merrill Lynch Ja

  42. Slide 42: Market Share Data

    Table of Contents Market Share Data Secondary Market Share Data (trillions of yen) Full Year Quarter FY2006.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 1Q 2Q 3Q Individual Equity Agency Transactions Share Market 48.5 52.0 105.9 144.7 38.8 64.3 104.3 Nomura’s share 15% 16% 10% 8% 7% 7% 7% Off-floor/Off-exc

  43. Slide 43: Value at Risk (Consolidated)

    Table of Contents Value at Risk (Consolidated) n Definition ¨ 99% confidence level ¨ 1-day time horizon for outstanding portfolio ¨ Inter-product price fluctuations considered n From April 1, 2005 to December 31, 2005 ¨ Maximum: 7.1 billion yen ¨ Minimum: 3.8 billion yen ¨ Average: 5.4 billion yen (

  44. Slide 44: Number of Employees

    Table of Contents Number of Employees End of quarter Mar. 2002 Mar. 2003 Mar. 2004 Mar. 2005 Jun. 2005 Sep. 2005 Dec. 2005 Japan (excluding FA, SA) 9,697 9,258 9,148 9,190 9,604 9,508 9,395 Japan (FA, SA) 2,177 1,986 1,915 1,875 1,984 1,930 2,016 Europe 1,381 1,389 1,403 1,535 1,524 1,535 1,529 Amer

  45. Slide 45: Nomura Holdings, Inc. www.nomura.com

    Table of Contents Nomura Holdings, Inc. www.nomura.com

Nomura Holdings — Q3 FY2006.3 Earnings Presentation on 6ix