Nomura Holdings, Inc. · TSE:8604

Nomura — Q4 FY2004 Earnings Presentation

34 slides from Nomura's earnings presentation, April 2004

  1. Slide 1: Consolidated Results of Operations (US GAAP)

    Consolidated Results of Operations (US GAAP) Fourth Quarter, Fiscal Year ended March 2004 Nomura Holdings, Inc. April 2004 1

  2. Slide 2: Outline of Presentation

    Outline of Presentation „ Financial Summary „ Review of Businesses ¾ Segment Information ¾ Domestic Retail ¾ Global Wholesale ¾ Asset Management ¾ Non-interest Expenses „ Appendix 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2004 Nomura Holdings, Inc. All rights reserv

  3. Slide 3: Consolidated Financial Summary

    Consolidated Financial Summary Twelve months ended March 31, 2004* ¾Net revenue 803.1 (up 42%) ¾Non-interest expenses 520.4 (up 0.3%) ¾Income before income taxes 282.7 (up 496%) Results for the ¾Income before cumulative effects of accounting changes 172.3 (up 1,604%) Twelve Months ¾Net income 172.3

  4. 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

  5. Slide 5: Segment Information

    Segment Information Income before Income Taxes by Segment Do m es ti c Re ta il Global Wholesale Asset Management (Billions of yen) 135 135 138.5 95 Sum of Three Segments 115 125 Up 52% 85 1Q 2Q FY03.3 FY04.3 115 95 105 75 79.5 95 91.0 65 3Q 4Q 4Q 24.8 59.9 75 85 55 75 65 45 10 Total 55 Up 123% 0 0

  6. Slide 6: Domestic Retail (1)

    Domestic Retail (1)* Net Revenue 4Q Points (Billions of yen) 350 Up 23% „ Commissions: 47.2 billion yen, up 138% 305.8 9 Stock Brokerage Commissions**: 28.2 billion yen, up 267% 300 ¾ Individual Equity Agency Transaction Value*** 249.3 Monthly average = 11.4 trillion yen, up 264% 250 ¾ Equity Holdin

  7. Slide 7: Domestic Retail (2)

    Domestic Retail (2) Stock Brokerage Commissions/Foreign Currency Bond Distribution to Retail Investors / Revenue Breakdown (approx. figs.) Stock Brokerage Commissions (Billions of yen) 30 Revenue Breakdown 28.2 26.2 25.6 100% 100% 0% 0% 3% 1% 3% 1%3% 3% 2% 2% 1%2% 2% 25 20.5 7% 7% 8%8% 8% 8% 8% 8% 8

  8. Slide 8: Domestic Retail (3)

    Domestic Retail (3) Retail Client Assets / Net Asset Accumulation Retail Client Assets* Net Asset Accumulation (monthly average) Foreign Bonds Domestic Bonds** (Trillions Equities Stock inv estment trusts of yen) Bond inv estment trusts Ov erseas mutual f unds (Billions Other*** 35.2 of yen) 35 32.5

  9. Slide 9: Global Wholesale (1) Fixed Income

    Global Wholesale (1) Fixed Income 4Q Points Net Revenue „ Foreign Currency Bond Public Offering to Retail (Billions of yen) Investors 200 9 GE Capital: 80.4 billion (A$) Up 13% 9 Toyota Motor Credit: 41.8 billion (US$) 180 174.0 9 KfW Bank: 17.7 billion (A$) 154.0 160 140 „ Large-scale Foreign Curre

  10. Slide 10: Global Wholesale (2) Equity

    Global Wholesale (2) Equity 4Q Points „ Market Environment 9 Equity Agency Transaction Value* (monthly average) Net Revenue 52.9 trillion yen (up 125% YoY, up 17% QoQ) (Billions of yen) 9 Off-floor/Off-exchange Equity Trading Value 14.5 trillion yen (up 52% YoY, 31% QoQ) 120 Up 34% 110.2 „Net Gain o

  11. Slide 11: Global Wholesale (3) Investment Banking

    Global Wholesale (3) Investment Banking 4Q Points „IPO, PO* Net Revenue 9 IPO Market: 423.3 billion yen (up 271% YoY) Nomura: 119.9 billion yen (up 684% YoY) (Billions of yen) Major issue: Shinsei Bank 80 Up 3% 69.1 70.9 9 PO Market: 806.3 billion yen (up 81% YoY) 70 Nomura: 183.9 billion yen (up 5%

  12. Slide 12: Global Wholesale (4) Merchant Banking

    Global Wholesale (4) Merchant Banking 4Q Points Net Revenue „New Deals 9 Acquisition of shares in Taiyo Electric (Billions of yen) 9 Acquisition of shares in Sliontec 12 10.7 9 Establishment of Assisted Living Facility Fund 10 Up 72% „Exposure to Merchant Banking Business 8 7.1 6 Terra Firma NPF 4.1

  13. Slide 13: Asset Management (1)

    Asset Management (1) 4Q Points „ New Funds Net Revenue 9 World Genome Technology Open Established Nov, NAV as of end March: 97.2 billion yen 9 Nomura US High Yield Bond Income** Established Dec, NAV as of end Mar: 178.0 billion yen (Billions of yen) 9 Nomura Fund Masters Japan Small Capitalization S

  14. Slide 14: Asset Management (2)

    Asset Management (2) Assets Under Management (NAM) Market Share (NAM) (Trillions of yen) 25 Bond investment trusts Other Investment Advisory Total public investment trusts Bond Investment Trusts Stock investment trusts 21.0 Stock Investment Trusts 45% 41% 41% 19.9 0.2 40% 40% 40% 40% 20 0.1 40% 18.2

  15. Slide 15: Non-interest Expenses (1)

    Non-interest Expenses (1)* 4Q Points „ Compensation and Benefits (Billions of yen) 600 Up 63.9 billion yen, up 1% 0.3% 518.9 520.4 500 „ Information Processing and Communications 400 22.5 billion yen, up 6% 300 Down „ Business and Development Expenses 11% 7.2 billion yen, up 23% 200 162.9 144.6 100

  16. Slide 16: Non-Interest Expenses (2)

    Non-Interest Expenses (2) „Compensation and Benefits 9 Fixed-type expenses: 35.5 billion yen, up 4%, YoY, down 2% QoQ 9 Variable-type expenses: 28.4 billion yen, down 3% YoY, up 11% QoQ Compensation and Benefits* (Billions of yen) 50 40.4 36.7 Fixed-type 40 36.6 34.2 35.3 36.6 36.1 36.1 35.5 expense

  17. Slide 17: Appendix

    Appendix • Revenue and Income by Business Segment (P18) • Global Wholesale (P19) • Domestic Retail Related Data (P20) • Major Differences (Segment / Income Statement) (P21) • Revenue (P22-25) • Non-interest Expenses (P26) • Client Assets (P27) • Number of Accounts (P28) • Secondary Market Share Data

  18. Slide 18: Revenue and Income by Business Segment

    Revenue and Income by Business Segment (Quarterly Base) Unit: millions of yen Domestic Retail FY03.3 Full FY04.3 Full 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Non-interest revenue 66,436 56,136 69,366 54,999 246,938 74,573 75,214 74,893 79,355 304,035 Net-interest revenue 599 605 915 194 2,313 397 378 460

  19. Slide 19: Global Wholesale

    Global Wholesale (Revenue and Income by Business Line, Quarterly Base) Unit: Millions of yen Fixed Income FY03.3 Full FY04.3 Full 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Net revenue 43,887 32,476 41,550 36,052 153,966 62,261 48,118 26,319 37,296 173,994 Non-interest expenses 18,944 16,334 17,605 23,877 76

  20. Slide 20: Domestic Retail Related Data

    Domestic Retail Related Data (Bilions of Yen) FY02.3 FY03.3 FY04.3 Domestic Retail 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net interest revenue 1.1 0.5 0.9 0.6 0.6 0.8 0.7 0.2 1.2 1.2 1.4 1.1 Sales credit 13.1 12.3 18.8 17.3 20.5 17.8 32.2 25.2 40.4 21.7 18.0 17.7 Investment trust administration fees an

  21. Slide 21: Major Differences (Segment / Income Statement)

    Major Differences (Segment / Income Statement) (FY04.3 12 months) Total Income before Income Taxes for 3 Business Segments: 217.0 billion yen Loss/gain on undesignated hedging -12.5 billion yen instruments included in Net Gain on Loss/gain on investment securities 1.6 billion yen Equity in losses/ea

  22. Slide 22: Revenue (1) Commissions

    Revenue (1) (Commissions) (Billions of yen) (Billions of yen) 220 210.2 70 200 62.9 60 57.6 180 56.0 160 50 141.6 46.1 140 40 120 34.7 34.3 33.8 100 30 26.6 80 60 20 40 10 20 0 0 FY03.3 FY04.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total 141.6 210.2 Total 46.

  23. Slide 23: Revenue (2) Fees from Investment Banking

    Revenue (2) (Fees from Investment Banking) (Billions of yen) 100 (Billions of yen) 35 87.0 81.8 31.0 80 30 28.2 25 24.4 60 19.9 20 18.3 16.9 15.6 15 14.5 40 10 20 5 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY03.3 FY04.3 Total 15.6 18.3 16.9 31.0 14.5 19.9 2

  24. Slide 24: Revenue (3) Asset Management and Portfolio Service Fees

    Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) (Billions of yen) 30 100 25 24.2 79.3 80 21.9 20 66.2 18.6 17.5 17.0 16.8 60 15.7 15 13.7 40 10 20 5 0 FY 03.3 FY03.3 FY 03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 0 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total 79.3 66.2 Total 2

  25. Slide 25: Revenue (4) Net Gain on Trading / Net Interest Revenue

    Revenue (4) (Net Gain on Trading / Net Interest Revenue) (Billions of yen) 125 113.9 (Billions of yen) 342.6 330 99.5 100 285.2 80.3 86.4 280 81.5 66.6 75 230 56.8 50 42.8 180 130 25 80 0 30 -25 -20 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total 2

  26. Slide 26: Non-interest Expenses

    Non-interest Expenses (Billions of yen) 250 (Billions of yen) 700 600 200 520.4 518.9 162.9 500 150 144.6 124.3 128.8 126.7 400 118.5 120.3 113.2 100 300 200 50 100 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY03.3 FY04.3 Total 518.9 520.4 Total 124.3 118.5 1

  27. Slide 27: Client Assets

    Client Assets (Trillions of yen) Nomura Securities Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Equities 28.9 24.9 24.8 25.1 24.9 23.6 22.3 21.6 24.8 28.7 30.3 35.9 Bonds 12.3 12.8 13.3 13.7 14.9 15.4 15.4 16.8 17.9 18.4 17.5 17.3 Stock investment t

  28. Slide 28: Number of Accounts

    Number of Accounts Nomura Home Trade (online trading accounts) (Thousands accounts) Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 Dec.03 Mar.04 1,005 1,079 1,114 1,141 1,168 1,215 1,290 1,367 IT share FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q No. of order 39% 38% 33% 42% 45% 46% 46% 49% Transaction value 17

  29. Slide 29: Secondary Market Share Data

    Secondary Market Share Data (Market unit: trillions of yen) Individual Equity Agency Transactions Share (monthly average) FY03.3 Full FY04. Full 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Market 5.2 3.9 5.2 3.1 4.3 5.0 9.1 9.8 11.4 8.8 Nomura's share 20% 16% 17% 8% 16% 8% 10% 9% 10% 10% Off-floor/Off-exchang

  30. Slide 30: Primary Market Share Data (Value Base)

    Primary Market Share Data (Value Base) Straight Bonds * FY03.3 FY04.3 02.4-6 02.4-9 02.4-12 02.4-03.3 03.4-03.6 03.4-03.9 03.4-03.12 03.4-04.3 Nomura's share 20% 22% 22% 23% 22% 23% 19% 19% Euro Yen Bonds ** FY03.3 FY04.3 02.4-6 02.4-9 02.4-12 02.4-03.3 03.4-03.6 03.4-03.9 03.4-03.12 03.4-04.3 Nomur

  31. Slide 31: Assets Under Management (NAM / NCRAM)

    Assets Under Management (NAM / NCRAM) NAM (Trillion yen) Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Stock investment trusts 2.7 2.4 2.9 3.2 3.6 3.3 3.3 3.2 3.5 4.3 4.3 4.5 Bond investment trusts 14.5 12.9 10.9 10.4 9.2 8.3 7.8 7.3 7.0 7.0 6.6 6.3

  32. Slide 32: Value at Risk (Consolidated)

    Value at Risk (Consolidated) „ Definition From Apr. 1, 2002 to Mar. 31, 2004 ¾ 99% confidence level Maximum: 5.6 billion yen ¾ 1-day time horizon for out trading portfolio Minimum: 1.7 billion yen Average: 3.90 billion yen ¾ Inter-product price fluctuations considered (Billions of yen) The end of qu

  33. Slide 33: Number of Employees

    Number of Employees Mar. 01 Sep. 01 Mar. 02 Sep. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Asia/Oceania 486 476 468 462 616 622 646 652 655 Americas 835 893 827 753 797 821 843 852 866 Europe 1,370 1,449 1,381 1,352 1,389 1,439 1,372 1,439 1,403 Japan (FA, SA) 2,195 2,192 2,177 2,072 1,986 1,960 1,

  34. Slide 34: Nomura Holdings, Inc.

    Nomura Holdings, Inc. www.nomura.com/jp/ 34 34

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