Nomura Holdings, Inc. · TSE:8604
Nomura — FY2012/13 Q4 Earnings Presentation
44 slides from Nomura's earnings presentation, May 8, 2013
Slide 1: Form 6-K Nomura Holdings, Inc.
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 May 2013 NOMURA HOLDINGS, INC. (Translation of registra
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), Fourth quarter, year ended March 2013
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: May 8, 2013 By: /s/ Eiji Miura Eiji Miura Senior Managing
Slide 4: Consolidated Results of Operations (US GAAP) Fourth quarter, year ended March 2013
Table of Contents Consolidated Fourth (US Nomura April © Nomura GAAP) 2013 quarter, Hodings, Results year Inc. ending of Operations March 2013
Slide 5: Disclaimer
Table of Contents Disclaimer Nothing securities or accepted All permission This be nature, consider website events Forward-looking Thesales read rights information consolidated document and are in may (http://www.nomura.com) in all by issued regarding the inherently investor this of of Nomura becont
Slide 6: Presentation Outline
Table of Contents Executive Presentation Outline Overview Business Non-interest Progress Robust Changes Funding Exposure Financial Value Consolidated Main Adjustment Income Segment Retail Asset Wholesale 2Number revenue Management at (p. related financial (loss) risk of and to of “Others” segment Su
Slide 7: Executive summary – Full year
Table of Contents Executive Full Reported Performance –Steady Net Revenues Absorbed Continued Income (billions Group-wide: Unrealized 237.7 385.0 Asset Wholesale Income Net ROE: Dividend Retail revenue: Assetyear revenue: income Wholesale Other 46.0 193.5 4.2x FY2011/12 Retail FY2012/13 (1) (2) Net
Slide 8: Executive summary – 4Q
Table of Contents Executive 4Q Significant income Robust –Holdings Stock Revenues Net Strongest Capital Earnings Loss (billions Income Group-wide: Unrealized 169.7 Asset Wholesale Other 1Q 13.0 35.4 19.7 Retail 4(1) Income Net ROE: Retail highlights 2Q revenue: (Y34.8bn) revenue: income Management m
Slide 9: Overview of results
Table of Contents Overview (billions Highlights 4Q YoY QoQ FY2012/13 Non-interest Income Net EPS2 ROE3 (1) (2) 5(3) Net Diluted Calculated Full revenue income 21.55 14.8% income before year ofofnet yen, 1yen 653.6 expenses results 4.9% 82.4 using income attributable except 4.0x +68% 4.1x annualized
Slide 10: Business segment results
Table of Contents Business FY2012/13 (billions 4Q Asset Revenues Wholesale Other Net income before taxes Segment Other* Unrealized equity Income *Additional Capital Earnings 6Loss Full Retail revenue (Y34.8bn) Wholesale Management 276.9 securities 50.1 Asset gain Retail before year of total of segme
Slide 11: Retail
Table of Contents (billions FY11/ 712 taxes Retail (trillions 83.8 FY2011/12 Mar Key Full products more Client Sales Premium –Other (of ofFY12/ Non-interest Accounts Total TMA Stock Increased Net Nomura IPOs Retail which) 1Q results of revenue: revenue year points Jun 72.0 than 63.1 asset salesQuart
Slide 12: Retail – Investment trust and stock sales
Table of Contents Retail: Total Stocks 5,000 800 Net 218 38 96 360 73 107 647 -4 185 All Equities: among Investment quarter –Bonds: for Strong (billions 932 703 FY2011/12 2,316 4Q (1) 8(2) Solid Primary Sales Investment Robust individuals Net Retail 1Q products asset 600 820 685 sales 4,000 Stock gr
Slide 13: Asset Management
Table of Contents Asset (billions FY11/ 912 and 4Q Premium Y139.9bn Nomura Y128.4bn Enhanced –Y99.1bn with Management FY12/ Non-interest Assets (trillions 36.1 FY2011/12 Mar Key Full Steady taxes Net Income performance -10% to Investor Investment AuM (1) (2) Revenues Income Total Newly 2Qof Quarter
Slide 14: Asset Management – Assets under management
Table of Contents Asset Assets (trillions 32.7 8.9 9.6 8.6 24.0 40.0 (billions 0-Investment 200 400 17 241 33 -19 -114 66 464 48 307 4Q (1) (2) 23.0% 22.1% 22.4% 19.0% 20.0% 10200 70 Total Based 1Q 8.7 7.8 36.1 26.5 30.0 Management: FY2011/12 Mar Awards Nomura –Won ‘Nomura 22.0% under 2Q Asset of as
Slide 15: Wholesale
Table of Contents Wholesale FY11/ 12 Non-interest taxes (billions 200.0 150.0 AEJ 15.0 100.0 35.5 55.5 83.4 FY2011/12 0.0 (1) (2) Key Full 4Q Net Regional Japan –Income 11Absorbed All While Continued Net Higher Revenues 13 Figures Net 1Q results revenue revenue: year points 58.9 Japan 72.5 40.4 busi
Slide 16: Global Markets
Table of Contents Global 110.7 87.0 71.5 +24% Key 4Q Net Japan Japan: economic Product Globally, Revenues Annual (billions 274.5 +38% 378.7 160.0 EMEA AEJ 218.7 FY2011/12 Full Americas: start momentum AEJ: –EMEA: continued (1) 12Second Client Rates Securitized Revenue Franchise Despite Figures 1Q re
Slide 17: Global Markets – Equities and trading
Table of Contents Global (billions 47.3 51.6 65.1 32.1 +26% FY2011/12 Key 4Q Net Up Strong Trading Derivatives: Migration 2H 1.6x -4% +20% +159% 3.6x Japan contributed significantly AEJ the Americas –EMEA economic 1H FY2012/13 (1) 13Trading Particularly Migration Strong Primary Cash Derivatives High
Slide 18: Investment Banking
Table of Contents Net revenue1 (billions 40.5 Investment Other 19.8 13.3 16.4 0.6 21.2 of23.4 23.8 32.2 yen) 13.2 33.3 Banking -23% +32% 0.4 QoQ (Gross) 33.4 44.1 (Net) 30.9 15.1 ($1.4bn) FY2011/12 4Q Key Net booked, business Gross Revenues –DCM Executed primarily Leveraged (1) (2) Japan: Nikkei Acc
Slide 19: Non-interest expenses
Table of Contents expenses depreciation and brokerage (Reference) benefits (billions 1,575.9 483.9 366.3 0800 100 400 12F FY11/12 Compensation Commissions Information Occupancy communications Business Other Total Key Full (+9% to Land 2011), factors roughly 4Q Non-interest (+29% –due NREH by 15 Y11/
Slide 20: Non-interest expenses (Reference)
Table of Contents (Reference) Full Higher Increase program, Non-interest Quarter Compensation Y3.9bn international –Information Marked offset 0F 400 800 1,200 (billions 300 FY2011/12 4Q 16 Y2011/12 Loss Goodwill Booked Increased Costs 1Q 200 year higher on 2Q costs in related increase 100 in of up o
Slide 21: Progress of cost reduction program
Table of Contents Timeline Announced Japan AEJ Americas EMEA PE NPE FY2012/13 2Q 35% 20% Wholesale: 27% Region Progress Additional of ahead Improving Migration cost business –key structure (1) 17Personnel Migrating Reorganized Reallocated Corporate end Regional 43% 2H coverage reductions 15% 90% 69%
Slide 22: Robust balance sheet and liquidity
Table of Contents Robust Balance Shareholders’ Gross Net Liquidity Dec Preliminary RWA Tier Total (1) (2) (3) Leverage (x) 10.0 14.0 16.5 18.0 6.0 Level (billions 1,500 31% 01,000 500 25% FY2011/12 4Q 180% Net Preliminary. Credit Gross 1Q leverage1 313 210.4 3 129% assets capital 12,834 Net 3leverag
Slide 23: Changes in Tier 1 ratio and risk-weighted assets
Table of Contents Changes Tier Risk-weighted 16.9% 14.9% 2,174 Increase 12,834 17,753 -1,230 +4,700 +1,900 Fully (Reference) 11,110 Approx. Dec (Basel of 19 positions) NREH 2012 1loaded -225 ratio 2.5) 18.8% -500 10% in totrading vs. Effect 2,094 RWA deconsolidation(Decline Tier shareholders’ Basel
Slide 24: Funding structure and liquidity
Table of Contents Funding Highly structure marked-to-market trading through by and structural –Liquidity portfolio for over Balance (As Assets Cash Liabilities Trading Other Total Unsecured Approx. Short-term Loans Breakdown (1) (2) (3) 20Y5.9trn, 82% Other Maintain currency) Trading additional Defi
Slide 25: Exposure to European peripheral countries
Table of Contents Exposure GIIPS Net total Counter Total Greece hedges Ireland Italy Portugal Spain European countries Sovereign Non-sovereign (1) (US$m) (2) Peripheral Declined Mostly Inventory 21 Inventory, Net exposure inventory 2012 18 party 476 country 26 230 due counterparty 606 Of -29 by –to
Slide 26: Financial Supplement
Table of Contents Financial Supplement
Slide 27: Consolidated balance sheet
Table of Contents Consolidated (billions Mar. 2012 Assets Trading Long-term equity Noncontrolling Total 1. 23 Including 31, 2013(Decrease) cash payables loans collateralized trading other NHI assets investments Liabilities liabilities of Mar. and shareholders’ borrowings assets and yen) 35,697 secur
Slide 28: Value at Risk
Table of Contents Value31, 99% Definition 1-day Inter-product From Maximum: Minimum: Average: (billions Mar 2012 Equity Interest Foreign Sub-total Diversification VaR 24 7.2 confidence 2012 April time at1.4 rate exchange Jun. 5.4 risk of 6.1 10.4 1.2 2012 4.3 horizon yen) 8.7 1, 7.1 6.5 30, price 20
Slide 29: Consolidated financial highlights
Table of Contents Consolidated Full 120 11.6 (billions Quarter 4.9% 107.2 0% 2% 4% 6% 8% Income Net Holdings, ROE Diluted-Net shareholders Total FY2011/12 (yen) 4Q 499.0 60.8 22.1 2,107.2 0.6% 5.92 575.20 (1) 25 Quarterly 1Q 6% revenue income 100 year 0.6% 19.7 1.9 0.50 (%) (%)1 NHI 0.4% 369.3 2Q 56
Slide 30: Consolidated results
Table of Contents Consolidated Full (billions FY2011/12 4Q Commissions Revenue Fees Asset Gain Other Total Interest Non-interest Income Net 26 1Q gain revenue income year from (loss) revenue management 563.2 2Q and expense before of on Quarter investment 3Q on yen) FY2012/13 attributable trading div
Slide 31: Main items of revenue
Table of Contents Mainyear Fees Full FY2011/12 (billions Stock Commissions investment Equity Bond M&A Other Asset Administration Custodial Total 27 from 347.1 59.6 144.3 revenue underwriting management brokerage 32.4 3.7 / underwriting financial of Quarter 7.7 fees investment 62.4 32.6 trusts yen) F
Slide 32: Adjustment of segment results
Table of Contents Adjustment Full (billions FY2011/12 4Q Retail Asset Wholesale1 Three Other1 Segments Unrealized securities Income (1) 28 Due 1Qyear Management Business 63.1 2Q 35.2 (loss) to of Quarter held total a3Q gain 100.6 yen) FY2012/13 of -37.7 6.6 reorganization before 4Q for consolidated
Slide 33: Segment results: Other
Table of Contents Segment Full Quarter 14.6 35.2 6.6 (billions 20 40 60 -67.9 50.1 FY2011/12 4Q Net hedging Realized securities Equity Corporate Others1 Income (1) 29 40 0 Due 1Q 7.3 gain year 17.0 -20 20 in 2Q (loss) (Loss) to 48.1 transactions -40 of (loss) gain(loss) “Other” 0earnings held items
Slide 34: Retail related data
Table of Contents FullNomura (billions 4Q Commissions Fees Investment Net Non-interest Income Domestic trusts1 Bond Stock Foreign Accumulated Other Sales policies (transaction Retail (1) 30 1Q interest revenue year from credit of investment investment related foreign 8,933.9 2Q before investment JGB
Slide 35: Retail commissions data
Table of Contents Retail Full 180 (billions Quarter FY2011/12 4Q Stock Commissions investment (1) 31 Nomura 1Q 150 year brokerage related 2Q 120 of3Q trusts1 yen) FY2012/13 Securities. 90 data for 4Q 60 commissions distribution (2) 139.9 30 0 QoQ 161.5YoY of and 36.0 38.2 investment commissions 51.8
Slide 36: Retail client assets
Table of Contents Retail funds trusts Full bonds (trillions 100 Quarter 83.8 FY2011/12 Mar. Equities Foreign Domestic Stock Bond Overseas Other Total (1) (2) 32 Includes 80 year 83.8 12 72.0 investment 2investment related client 60 2.3 Mar. currency 37.2 of mutual 72.0 bonds 40 83.8 FY2012/13 2.7 ye
Slide 37: Retail net asset inflow
Table of Contents Retail Full (billions Quarter 2,400 900 4,000 2,000 1,035 360 38 0-185 -100 FY2011/12 4Q (1) 33 10100 Net 1Q year 647 500 300 related client 2Q asset of700 3Q yen) FY2012/13 assets: inflow data 4Q (4)Net = asset assetinflow inflow1 – asset outflow. Retail client assets exclude port
Slide 38: Retail related data – accounts
Table of Contents Retail Number Mar. Accounts Equity Nomura Net Full (Thousands) 4Q New No. Transaction From IT 34 share2 share 1Q & of year 12 Individual individual December related Call orders holding 2Q Mar. of Home isQuarter with 3Q the accounts accounts1 value FY2011/12 13 57% data 4Q percentag
Slide 39: Asset Management related data
Table of Contents Asset (billions FY2011/12 4Q Non-interest Income AuM Full (trillions 40.0 31.9 30.0 24.6 FY11/12 0.0 10.0 20.0 Mar Total Net 35 1Q revenue after year 12 36.1 31.9 27.9 24.6 assets (gross) (net) Management 2Q Mar before of of FY12/13 deducting Quarter 36.1 32.7 30.1 23.3 3Q 2yen) FY
Slide 40: Asset Management assets under management
Table of Contents Asset Full (billions 4Q ETFs Investment business Net FY11/12 Mar and Capital (gross)1 Group Assets (net)2 Nomura (trillions 11/12 Mar. Domestic Market Nomura’s (1) (2) (3) 36 Assets Total Net 1Q Asset Technologies asset year 12 12 347 Management inflows/outflows 12/13 24.6 company
Slide 41: Wholesale related data
Table of Contents Wholesale 4Q Breakdown FY2011/12 (billions Fixed Equities Global Other Net Non-interest Income Investment (1) 37 Due 1Q revenue 23.9 Income 2Q Markets (Loss) to 181.2 ofa3Q related 12.4 yen) Banking(Net) Banking Banking(Gross) FY2012/13 of reorganization 555.0 expenses 274.5 4Q Who
Slide 42: Wholesale private equity related data
Table of Contents Wholesale Private Full (billions 221.3 300 206.0 104.6 200 0F 100 Mar. Japan Europe Asia Sub Terra Total 38 Y2011/12 Total year 1.9 12 221.3 Firma 221.3 206.4 103.1 65.5 equity (excluding Mar. 2.0 of Quarter 94.1 related 52.7 yen) FY2012/13 104.6 127.2 104.6 1.9 13 related 76.5 65.
Slide 43: Number of employees
Table of Contents Number Mar. Japan Europe Americas Asia-Pacific2 Total (1) 39 31, 34,395 (excluding (FA) 4,014 of 2012 2,420 Excludes employees 2,011 35,063 3,975 6,352 Jun. 2,423 FA)1 2,014 30, 3,940 6,454 employees 34,815 2,425 2012 19,598 1,981 3,747 6,430 34,098 Sep. 2,316 1,951 20,197 of3,618
Slide 44: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com