Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Presentation (May 2003)
35 slides from Nomura's investor presentation, May 16, 2003
Slide 1: Investor Presentation
Investor Presentation Nobuyuki Koga President & CEO,Nomura Holdings, Inc. May 16, 2003 This is a summary of the Investor Presentation on May 2003 Date: May 16, 2003 (Friday) Place: 7th floor Nomura Securities Co., Ltd. Speaker: Nobuyuki Koga, President & CEO, Nomura Holdings,Inc. 1. This document is
Slide 2: Outline of the Presentation
Outline of the Presentation I Group Vision & Management Structure II Results of Operations III Business Strategy Domestic Retail Asset Management Global Wholesale 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2003 Nomura Holdings, Inc. All rights reserved. 2. Nothing in
Slide 3: Group Vision
Group Vision II Group Vision & & Management Management Structure Structure II Results of Operations III Business Strategy Domestic Retail Asset Management Global Wholesale I will start with Group vision and management structure. 3
Slide 4: To be a Globally Competitive Japanese Financial Services Group
I Group Vision & Management Structure Group Vision To be a Globally Competitive Japanese Financial Services Group Focus Strengthen Action to Expand the Securities Market in Japan Enhance Business Origination in Japan Pursue Collective Strength through Greater Cooperation among Divisions 4 Nomu
Slide 5: Business Execution Structure (1)
I Group Vision & Management Structure Business Execution Structure (1) Strategic Strategic Management Management Committee Committee z z Examination Examination of of Divisional Divisional Business Business Plans Plans Nomura Holdings z z Asset Asset Allocation Allocation Domestic Domestic Retail Re
Slide 6: Business Execution Structure (2)
I Group Vision & Management Structure Business Execution Structure (2) CEO CEO COO COO Co-COO Co-COO Domestic Domestic Retail Domestic Domestic Retail Retail Retail Global Global Wholesale Global Global Wholesale Wholesale Wholesale Asset Asset Management Asset Asset Management Management Management
Slide 7: Business Execution Structure (2)
I Group Vision & Management Structure Business Execution Structure (2) CEO CEO COO COO Co-COO Co-COO Domestic Domestic Retail Retail Global Global Wholesale Wholesale Asset Asset Management Management Nomura Nomura Securities Securities Nomura Nomura FR&T FR&T Nomura Nomura Asset Asset Management Ma
Slide 8: Enhancement of Management System
I Group Vision & Management Structure Enhancement of Management System Adoption of the Committee System General General Meeting Meeting of of Shareholders Shareholders Nomination Nomination Committee Committee Board Board of of Directors Directors Audit Audit Committee Committee Compensation Compens
Slide 9: Results of Operations
I Group Vision & Management Structure II ResultsofofOperations II Results Operations III Business Strategy Domestic Retail Asset Management Global Wholesale I would now like to briefly summarize our operating results. 9
Slide 10: Financial Summary Year Ended March 31, 2003 (US GAAP)
II Results of Operations Financial Summary 12 Months Ended March 31, 2003 (US GAAP) (Billions of yen) ¾Income before income taxes 47.4 (down 76%*) ¾Net income 119.9 (down 39%*) ¾Total assets 21,169.4 (up 3,411.2**) ¾Total shareholders’ equity 1,642.3 (up 37.4**) ¾Leverage 12.9 times (11.1 times) ¾RO
Slide 11: Income before Income Taxes by Segment
II Results of Operations Income before Income Taxes by Segment (Billions of yen) 250 FY02.3 191.3 200 FY03.3 150 100 91.0 50 35.7 20.5 10.2 3.2 0 Domestic Retail Global Wholesale Asset Management 11 I will now comment on revenue by division. During the reported period, income before income taxes was
Slide 12: Business Strategy
I Group Vision & Management Structure II Results of Operations III IIIBusiness BusinessStrategy Strategy Domestic Retail Asset Management Global Wholesale Next, our business strategy. 12
Slide 13: Japan's Revival
III Business Strategy Shift of Individual Financial Assets Japan’s Revival Acceleration of Corporate Restructuring 13 I will start by discussing the business environment. Japan currently faces a particularly harsh economic situation. However, key developments toward economic revival have begun to su
Slide 14: Shift of Individual Financial Assets
I Group Vision & Management Structure II Results of Operations Business Strategy III Business Strategy Domestic Retail Asset Management Shift of Individual Financial Assets Global Wholesale I will now turn to the shift of individual financial assets, which we believe to be the key to the state of th
Slide 15: Business Environment: Shift of Individual Financial Assets (1)
III Business Strategy - Domestic Retail / Asset Management Business Environment: Shift of Individual Financial Assets (1) Japanese Individual Financial Assets Total: 1,396 trillion yen (as of Dec. 2002) Cash & Deposits Investment Trusts 2% 56% Bonds 2% Equity 6% Insurance & 29% Pensions Source: Nomu
Slide 16: Business Environment: Shift of Individual Financial Assets (2)
III Business Strategy - Domestic Retail / Asset Management Business Environment: Shift of Individual Financial Assets (2) Investment in Foreign Assets by Individuals* (Trillions of yen) 16 trillion yen (Yen/US$) 18 Yen-US$ (RHS) 160 16 150 11 trillion yen 14 140 12 130 120 yen / $ 120 10 110 8 100 6
Slide 17: Business Environment: Shift of Individual Financial Assets (3)
III Business Strategy - Domestic Retail / Asset Management Business Environment: Shift of Individual Financial Assets (3) FY2003 Securities Tax System Jan. 2003 Jan. 2008 Withholding tax (1.05% Self-assessed taxation Capital Gains on of sale amount) or Self-assessed taxation on Self-assessed on sepa
Slide 18: Domestic Retail Goals & Strategy
III Business Strategy - Domestic Retail Goals & Strategy Shift of individual financial assets from cash and deposits to risk assets Broaden customer base Core Value Formation 18 Domestic Retail’s goal is to shift individual financial assets from cash and deposits to risk assets and to broaden
Slide 19: Core Value Formation (1)
III Business Strategy - Domestic Retail Core Value Formation (1) Core Value Formation Core Value = what customers regard as most important Creation of a system that delivers services focused on customers’ core values Financial Consulting Section Wealthy Investors FA FA Section* Section* SA Section**
Slide 20: Core Value Formation (2)
III Business Strategy - Domestic Retail Core Value Formation (2) Matching Products with Core Value Product Lineup MTN Core Wealthy Investors Value Foreign Formation Currency Bonds Affluent Investors Attractive Dividends Blue Chip Fund Asset Builders 20 I would now like to give you an example of prod
Slide 21: Broaden Customer Base (1)
III Business Strategy - Domestic Retail Broaden Customer Base (1) Client Assets (excluding financials) & Nikkei Stock Average (Trillions of yen) 27 trillion yen As of end of Mar. 03 30 20,337 yen Other Nikkei Stock Average Investment Trusts 20 Equities Domestic 7,972 yen Bonds Foreign 10 Currency Bo
Slide 22: Broaden Customer Base (2)
III Business Strategy - Domestic Retail Broaden Customer Base (2) Revenue Structure by Product (approx.) 100% 3% Variable Annuity 14% 90% 14% 24% Investment Trusts 30% 80% (administration fees) 24% 15% Investment Trusts 70% 13% (distribution commission) 16% Equities 60% 28% 50% Bonds 35% 40% 52% 40%
Slide 23: Asset Management Goals & Strategy
III Business Strategy – Asset Management Goals & Strategy Enhance investment management business Strengthen defined contribution pension plan business Improve performance, increase added value, expand distribution channels, improve revenue yield, enhance cost control Increase pension adminis
Slide 24: Enhance Investment Management Business
III Business Strategy – Asset Management Enhance Investment Management Business Enhance Performance Basic Strategy Action Plan Pursue flexibility & benefits Consolidate decision making process of integration Establish investment team structure Increase number of analysts from 44 to 63 Stre
Slide 25: Strengthen Defined Contribution Pension Plan Business
III Business Strategy – Asset Management Strengthen Defined Contribution Pension Plan Business Pension Administration Share Product Supply Share No Product Supply Pension Nomura 14% Administration & 31% Product Supply 35% Product Supply Other 51% 69% Source: Nomura Securities, based on number of emp
Slide 26: Acceleration of Corporate Restructuring
I Group Vision & Management Structure II Results of Operations Business Strategy III Business Strategy Domestic Retail Asset Management Global Wholesale Acceleration of Corporate Restructuring Next, Global Wholesale. 26
Slide 27: Acceleration of Corporate Restructuring (1)
III Business Strategy – Global Wholesale Business Environment Acceleration of Corporate Restructuring (1) M&A Deals (No. of deals) 2,500 Overseas - Domestic Domestic - Overseas 2,000 Domestic - Domestic Entering New Markets 1,500 Strengthening Existing Business Group Restructuring 1,000 500 0 95 96
Slide 28: Acceleration of Corporate Restructuring (2)
III Business Strategy – Global Wholesale Business Environment Acceleration of Corporate Restructuring (2) Increase in Rehabilitation-type Bankruptcy Procedures (No.) 1,000 Civil Reorganization Law* 900 800 Composition Law 700 Corporate Rehabilitation Law 600 500 400 300 200 100 0 90 91 92 93 94 95 9
Slide 29: Global Wholesale Goals & Strategy
III Business Strategy – Global Wholesale Goals & Strategy Establish Strong Presence in Japan Focusing on Global Business Pursue collective strength through greater cooperation between Domestic Retail and Global Wholesale Promote Japan-focused globalization 29 The goal of Global Wholesale is to
Slide 30: Pursue Collective Strengths of Domestic Retail and Global Wholesale (1)
III Business Strategy – Global Wholesale Pursue Collective Strengths of Domestic Retail and Global Wholesale (1) Domestic Retail Global Wholesale Global Strong Sales Network Underwriting Network 30 The concept to pursue the collective strengths of Domestic Retail and Global Wholesale is aimed at cap
Slide 31: Pursue Collective Strengths of Domestic Retail and Global Wholesale (2)
III Business Strategy – Global Wholesale Pursue Collective Strengths of Domestic Retail and Global Wholesale (2) Fixed Income Equity Distribution Volume of Foreign Currency Enhancing Shareholders’ Equity Bonds for Retail Investors* (primary and secondary total) (Billions of yen) MTFG MTFG 800 756 70
Slide 32: Promote Japan-Focused Globalization (1)
III Business Strategy – Global Wholesale Promote Japan-Focused Globalization (1) Step 1 Consolidate Position in Japan Step 2 Establish a Solid Presence in Japan-Crossborder Business Step 3 Become a Genuine Global Player 32 I will now discuss Japan-focused globalization. This slide highlights the dif
Slide 33: Promote Japan-Focused Globalization (2)
III Business Strategy – Global Wholesale Promote Japan-Focused Globalization (2) Revival Process Program for Financial Revival Asset Asset Liquidation Liquidation Acceleration of Asset Asset Finance Finance Disposal of Non- Widening Widening Gap Gap performing Loans Among Among Companies Companies E
Slide 34: Promote Japan-Focused Globalization (3)
III Business Strategy – Global Wholesale Promote Japan-Focused Globalization (3) Asset Finance M&A Advisory Shinsei Bank CLO Announced Mergers & Acquisitions; Any Japanese Involvement Equity Finance 1/1/2002 – 12/31/2002 MTFG Rank Advisor Itochu Corporation 1 Nomura 2 Citigroup/Salomon Smith B
Slide 35: Nomura
NOMURA NOAURA