Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2011/12 Earnings Presentation
44 slides from Nomura's earnings presentation, Feb 10, 2012
Slide 1: Form 6-K Cover
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 2012 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), third quarter, year ended March 2012
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 10, 2012 By: /s/ Shinji Iwai Shinji Iwai Senior
Slide 4: Consolidated Results of Operations, Third quarter, year ending March 2012
Table of Contents Consolidated (US Nomura February GAAP) Holdings, 2012Results © Nomura Inc.of Operations Third quarter, year ending March 2012
Slide 5: Disclaimer
Table of Contents Disclaimer Nothing securities or No accepted This be nature, liquidity Thesales read part information consolidated document are in of may in of by issued the this inherently this secondary Nomura be context document is contains document made. and by financial produced Nomura opinio
Slide 6: Presentation Outline
Table of Contents Presentation Outline 3Q Asset 27) 2(p. 21) 17) keyManagement Asset pointsFinancial Management (p. 3)(p. Consolidated Supplement 9-10) related Adjustment data balance (p.of35-36) sheet consolidated (p. Robust 23) Executive results financial and summary position segment(p. (p. result
Slide 7: 3Q key points
Table of Contents 3Q key liquid, Revenues Realigning Implementing Robust Highly 3Capital financial levels points and to new sufficient income $1.2bn clean position revenue balance cost uptoQoQ; reduction meet environment sheet All newbusiness program capital requirements divisions to lower profitabl
Slide 8: Executive summary
Table of Contents Executive 3Q Highlights Retail Asset Wholesale –Fiscal (1) (2) All Consulting-based Contained Global Investment Net Net Gross netregions revenue: Income1 Management year-to-date revenue: income Markets: revenue summary costs and Banking: Y79.7bn Y15.3bn Y176.2bn declined (loss) Y40
Slide 9: Financial highlights overview
Table of Contents Overview (billions Highlights Non-interest Income Net ROE QoQ 3.5% 17.8 34.5 370.5 404.9 YoY +7% +34% +37% 1Q FY2011/12 24.2 1,012.7 -1,036.9 +31% +25% (1) 5(2) 57% Net Calculated –income revenue (10.5) (%) (%) 3Q 2+38% income (loss) ofofYoY yen) 3Q (loss) expenses results +24% bef
Slide 10: Business segment results
Table of Contents Business (billions Revenue Asset Net (loss) income Segment Wholesale Unrealized Other1 investments held Income 79.7 10.1 404.9 QoQ 34.5 (2.5) Y 1Q FY2011/12 257.9 42.8 1,036.9 YoY 24.2 (6.1) -+ (1) 6(2) 34% 37% 24% 25% 4% 6% 10% 18% 5% 56% 13% 11% 49% 88% 57% oYNomura “Other” -reve
Slide 11: Retail: key points
Table of Contents (billions QoQ Non-interest expenses income Retail (trillions 72.3 66.1 FY2010/11 3Q Key Net Income Revenues weakened Seventh channel; Client Sales –Other 7(of Accounts Provided Income Increased 50,000 Closer Retail Net UBS Nomura IPOs Bonds which) 4Q revenue revenue: performance po
Slide 12: Retail: client assets and sales
Table of Contents Retail: 3,000 Total Investment Bonds: –Stocks: Net (billions 2,000 250 1,107 847 72 2,122 (thousands Accounts 4,960 FY2010/11 4,966 4,954 4,945 4,936 4,930 178 176 174 172 3Q 180 8(1) TSE Enhanced Marketing Robust Sales IPO Net 4Q asset 170 sales sales: 2,000 1,500 4,920 subscripti
Slide 13: Asset Management: key points
Table of Contents Asset (billions QoQ Non-interest expenses income (trillions 24.7 22.7 25.3 FY2010/11 3Q Key Net Income Assets Contained Offered needs Newly –(currency Inflows International funds (1) equities (2) Nomura Nomura Source: 4Q revenue revenue: performance points 24.1 22.6 YoY for Managem
Slide 14: Asset Management: investment trusts and funds
Table of Contents Asset Fund (billions 500 400 300 200 0-100 -300 -188 -200 FY2010/11 -400 3Q Share 23% 21.9% Investment (trillions Non-Japan 8.0 10.0 12.0 4.6 2.0 4.0 6.0 Dec-10 0.0 Four Awards Best Nomura Excellent –Received Award 10 100 Domestic Balanced High East 4Q 5.7 5.3 4.5 Public 344 236 97
Slide 15: Wholesale: key points
Table of Contents Wholesale QoQ Non-interest Income expenses income (billions 200.0 FY2010/11 3Q 21.6 41.4 14.1 15.6 8.3 40.7 42.6 37.6 20.4 70.8 57.8 38.9 18.8 58.8 52.5 40.3 20.6 78.8 45.3 Key Net Revenues Regional Japan EMEA Americas –AEJ (1) (2) 11A Fixed Marked Investment Despite Robust Figures
Slide 16: Wholesale: Global Markets
Table of Contents Wholesale: (billions FY2010/11 QoQ 3Q Others Non-interest Income income Key Fixed Strong 53% Credit Securitized Net Equities –Client 12Cash 4Q revenue revenue: points in YoY Income revenues: and 7.8 performance 1Q equities H1), taxes (loss) 61.5 of3.3 2Q Rates yen) Products Global
Slide 17: Wholesale: Global Markets highlights
Table of Contents GlobalEquities EMEA Strong Completed Japan Continued Relatively AEJ Record Fixed Americas Further Securitized Cash Equities Enhance 13 Income performance Markets: quarter diversification research resilient momentum notable Products and revenues remained for Improved coverage Equiti
Slide 18: Wholesale: Investment Banking
Table of Contents Wholesale: (billions FY2010/11 QoQ 3Q Allocation Investment Other Net Non-interest taxes (1) (2) (3) Key Gross Income Significant improved Japan international M&A EMEA institutions overall –AEJ Americas 14 businesses Won Revenue Globally Increased Revenues League Joint Solutions M&
Slide 19: Investment Banking highlights
Table of Contents Investment Revenue1 +61% Supporting International Japan Global Won -Delivered (1) 15Continued Samurai Nexon: Rabobank: Banca Insurance Gross mandates +31% collaboration Popolare Joint revenue and products growth Banking: international solutions to Tier +120% Uridashi global build f
Slide 20: Non-interest expenses
Table of Contents Full Excl. (Reference) 41,000 0C 200 300 Commissions Information Occupancy communications Business Total (billions 852.2 772.6 FY2011.3 FY06/07 3Q 1,045.6 1,092.9 Key 370.5 346.2 296.0 262.0 268.1 Non-interest (+7% Excluding Compensation -Other 16 00 Primarily ompensation 4Qyear po
Slide 21: Progress of cost reduction program
Table of Contents Progress Timeline Retail, AM 20% development Nov $800m 80% Wholesale: 72% PE $200m July announcement –$400m Total 17 reduction Reduced Headcount Costs –100% 2011 AM PE 79% Business ofRetail, cost WS improved $200m down $1.2bn Personnel of of WS By 100% Retail SG&A WS 66% Non-person
Slide 22: Robust balance sheet and capital position
Table of Contents Robust Balance Shareholders Liquidity Preliminary (Basel RWA Tier Total (1) (2) (3) Leverage (x) 18.0 Gross 10.1 16.2 (billions 1,500 Level Net FY2010/11 0% 80% 3Q 18 36% 35% 37% 43% Tier Net Preliminary. 22.0 4Q leverage1 Level 214.0 3 1 assets capital 12,899 1,000 3leverage 2,050
Slide 23: Tier 1 capital and risk-weighted assets
Table of Contents Sep Reference Tier (billions RWA 11.1% 12.9% 10.5% 12.2% 13.7% 15.8% +3,800 12,899 Incease Credit Market As Approx. Main -350 --450 19 15,887 Sale Reduced of2011 1reason Sep Dec of capital ratio common risk risk of 16,700 of private vs. 2011 Preliminary 2011 market trading yen) for
Slide 24: Funding and liquidity
Table of Contents 15% 10% 7% year 53 Euro 26 21 debt 68% Mar (1) (2) (3) (4) Structurally Balance (Dec and Trading Approx. –75% Short Cash Long Other Total Funding 20Other 17% 21% 26 Long Trading Definition Redemption Mostly 70 related 2007 due 11% Euro 16% 10% Sub related1 31, MTN/Yen and equity te
Slide 25: Exposure to European peripheral countries
Table of Contents Exposure GIIPS (US$m) Total Of Change Greece Ireland Portugal Spain peripheral European countries Peripheral Italy Reduced Inventory Inventory, Net 21 which, inventory counter exposure counterparty 591 accounts 41 country -4 509 from -115 by 24 1,080 –Total to is -47 exposure reser
Slide 26: Financial Supplement
Table of Contents Financial Supplement
Slide 27: Consolidated balance sheet
Table of Contents Consolidated (billions Mar. Dec. Increase Assets Trading Collateralized Long-term private Noncontrolling Total 1. 23 Including 31, cash payables loans trading other Nomura assets Liabilities equity liabilities (Decrease) of 2011 and borrowings assets and yen) 36,693 securities asse
Slide 28: Value at risk
Table of Contents Value6.2 99% Definition 1-day Inter-product From Maximum: Minimum: Average: (billions Equity Interest Foreign Sub-total Diversification VaR 24 confidence April time at4.7 rate exchange 10.1 risk of 6.5 9.8 4.2 4.9 horizon yen) 9.7 13.7 16.9 11.7 to price 3.8 benefit 4.7 December (b
Slide 29: Consolidated financial highlights
Table of Contents Consolidated Full 400 Quarter 030 1.1% -10 -20 -30 -40 -50 FY2010/11 FY06/07 3Q Income Net Holdings, Total ROE Basic-Net NHI Shareholders’ *1 Note: 250% 3% Quarterly 4Q -1% -2% -3% -4% -46.1 revenue income 20% year shareholders (%) (%)1 Nomura Net 17.8 1Q (loss) (billions FY07/08 (
Slide 30: Consolidated results
Table of Contents Consolidated Full (billions FY06/07 3Q Commissions Revenue Fees Asset Gain Private Other Total Interest Non-interest Income Net Note: 26 4Q gain revenue income year from (loss) revenue Certain management 67.4 1Q equity and expense (loss) of on FY07/08 Quarter investment 2Q 28.2 on
Slide 31: Main items of revenue
Table of Contents Mainyear Fees Full FY2010/11 (billions Stock (retail) (other) Commissions investment Equity Bond M&A Other Asset Administration Custodial Total 27 from 337.5 99.3 146.0 revenue underwriting Management management brokerage 38.6 0.7 / underwriting financial of Quarter 1.8 fees Invest
Slide 32: Adjustment of income before taxes
Table of Contents Adjustment (billions Retail Unrealized Effect Full Total FY2010/11 FY06/07 3Q 160.9 36.3 156.0 353.2 24.0 377.3 -38.2 -21.5 318.5 Gain “Other” The Nomura presentation. 28 4Q defined year 31.1 -18.1 (loss) --50.2 122.3 -150.1 3.3 -14.7 -64.9 Asset of -1Q operating -Bank of consolida
Slide 33: Segment results
Table of Contents Segment Full (billions 40 021.0 -40 -80 -120 -160 -200 -240 -207.9 FY2010/11 FY06/07 3Q Net hedging Realized securities Equity Corporate Others* *Income 1: amounts 2: net previously current 3: 290The Businesses Net Nomura 24.0 gain 4Q -18.1 -62.1 gain year 15.4 -120 -160 -200 -240
Slide 34: Retail related data
Table of Contents Full4Q (billions FY06/07 3Q Commissions Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales (transaction Retail 1. 30 interest revenue year from credit of investment investment related foreign 1Q before investment JGBs of FY07/08 Quarter dist
Slide 35: Retail related data: commissions
Table of Contents Retail Stock Full (billions 150 70 180 0120 10 20 60 30 90 40 FY2010/11 FY06/07 3Q 98.3 Commissions 124.7 1. 31 0Nomura 4Q 60 50 year 75.1 124.5 brokerage related 1Qof FY07/08 Quarter 50.8 2Q Securities. yen) FY2011/12 79.8 data for 3Q 55.3 (billions commissions 168.8 distribution
Slide 36: Retail client assets
Table of Contents Retail Full (trillions 80 85.2 100 70.6 66.1 0M 20 40 60 Equities 1F 2D Stock Bond Overseas Other Total 1. 2. 3. 32 oreign omestic ar. Euroyen Includes 72.2 year 70.4 65.0 31, 85.2 investment 3investment related client 73.5 2.9 currency 48.5 2007 of Quarter mutual 59.3 bonds 72.2 b
Slide 37: Retail net asset inflow
Table of Contents Retail Full (billions 8,000 4,868 5,279 6,000 5,975 5,000 4,000 3,942 847 2,000 02,122 72 250 1,000 FY2010/11 FY2006/07 3Q 1. Note: 33 0Retail 4Q 1,107 year Net 6,000 4,928 3,000 related client 1Qof client Quarter asset 2Q yen) FY2011/12 FY2007/08 4,000 assets: data 3Q assets inflo
Slide 38: Retail accounts data
Table of Contents Retail From Number 34 (Thousands) Accounts Equity Nomura FY06/07 New IT No. Transaction share share2 ofindividual Individual December related orders holding of Home isFY07/08 with IT the accounts value share2 55% data percentage balance Trade accounts accounts 2011, 27% (5) FY08/09
Slide 39: Asset Management related data
Table of Contents Asset FY2010/11 (billions 3Q Net Non-interest Income 1. have 2. Full (trillions 27.0 30 23.4 25 50M 10 15 20 20.2 Total Nomura 35ar. The Nomura 22.7 4Q revenue year 25.8 24.7 31, been assets Management defined 1Q before 22.6 Private of 2007 of Quarter 25.3 made 2Q Bank yen) FY2011/
Slide 40: Asset Management investment trusts data
Table of Contents Asset Based Source: 36 Nomura (trillions Overseas Investment Mar. Domestic Market Nomura’s FY Excluding Public Privately Net 06/07 asset 31, Management on stock bond 59.4 13.2 Investment Asset 2007 of placed inflow investment reporting FY investment public share ETFs trusts advisor
Slide 41: Wholesale related data
Table of Contents Wholesale 37 (billions Global Fixed Equities FY08/09 Allocation Investment Other Net Non-interest Income revenue -38.9 -69.9 Income Markets (Loss) 98.9 of FY09/10 related to yen) Banking -2.4 12.2 -163.6 -157.3 -6.4 expenses other 352.8 -217.2 before -157.3 31.6 9.4 131.1 data FY10
Slide 42: Wholesale private equity related data
Table of Contents Wholesale Private Full 38 (billions Quarter Mar. Japan Europe Asia Sub Terra Total 400 500 543.4 600 366.3 327.7 300 0208.9 100 381.4 286.4 Total year — 31, 543.4 Firma 370.0 313.7 200 195.5 equity (excluding —of 2007 231.2 related 3.2 yen) 381.4 312.2 169.5 related Mar. 3.6 210.9
Slide 43: Number of employees
Table of Contents Number Excludes Figures Includes Note: conform Mar. 39 Japan Europe Americas Asia-Pacific3 Total 31, 16,854 Headcount (excluding (FA)2 1,791 up of 2007 to Powai employees 1,322 to employees the 2,174 18,026 March 1,956 900 Mar. current office 1,063 figures FA)1 1,070 2,377 31, 4,29
Slide 44: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com