Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2012/13 Earnings Presentation
41 slides from Nomura's earnings presentation, Nov 2, 2012
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 November 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), second quarter, year ending 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: November 2, 2012 By: /s/ Eiji Miura Eiji Miura Senior Man
Slide 4: Consolidated Results of Operations (US GAAP), Second quarter, year ending March 2013
Table of Contents Consolidated Second (US Nomura October © Nomura GAAP) quarter, 2012 Holdings, Results year Inc. ending of Operations March 2013
Slide 5: Disclaimer
Table of Contents Disclaimer Nothing securities offers be All written This must by statement are market Forward-looking Theaccepted their available rights information consolidated document be orconditions, permission nature, read in sales issued regarding and this by on inshould may Nomura is contai
Slide 6: Presentation Outline
Table of Contents Financial Presentation Outline Executive Overview Business Non-interest Progress Robust Funding Exposure Value Consolidated Main Adjustment Segment Retail Asset Wholesale Number 2 revenue Management at (p. related financial risk of and of “Others” segment Supplement 6-7) to of summ
Slide 7: Executive Summary
Table of Contents Executive Revenue Highlights – Business Retail: Contributed Asset Maintained Wholesale: Revenues Implemented Focus Commenced First (1) 3 Income Net half revenue: income1: Management: on Net and segment net areas before increased Net summary revenue :disciplined to Net additional re
Slide 8: Financial Highlights
Table of Contents Overview (billions Highlights Non-interest Income Net FY2012/13 ROE2 QoQ 0.5% 2.8 35.4 366.3 401.7 +9% F — +6% +33% -(770.9 +11% +22% (%) YoY 0.4% 4.7 (2) 41) Y2012/13 Net Calculated revenue income1 (%) +5% (%) 715.9 income before ofof +80% yen) 2Q 1H 55.1 expenses results using in
Slide 9: Business Segment Results
Table of Contents Business (billions Revenues Asset Segment Wholesale Net Unrealized Income FY2012/13 80.8 233.3 137.1 0.2 4.6 11.0 401.7 12.4 7.3 +1% +6% +12% -6% -2% QoQ 35.4 -15% -10% -57% +27% +29% +68% -4% -3% +2% F + +54% +5% +17% -8% YoY 55.1 24.3 24.7 (8.4) 9.9 23.2 770.9 6.0 310.6 454.3 259
Slide 10: Retail Segment Results
Table of Contents (billions Non-interest +2% -5% -4% YoY -10% -1% -2% QoQ 11.0 69.8 80.8 12.2 70.5 82.7 1Q 20.3 72.1 92.4 4Q 10.1 69.6 79.7 3Q 10.7 73.3 84.0 2Q (trillions 66.1 72.0 FY2011/12 Mar. FY2012/13 Sep. Key Income Lower Bond Investment Client Accounts Net Sales Nomura Other IPOs, Retail (of
Slide 11: Retail: Key Metrics
Table of Contents Retail: 3,000 Others Trusts Bonds Stocks Net (billions -10 185 260 647 1,107 2Q Total Investment Bonds: Stocks: – Client (thousands Accounts 4,997 FY2011/12 (1) 7 Further Second Foreign Sales Revenues Net 3Q asset sales sales: 2,000 5,003 franchise Consulting-based 4Q Sales asset o
Slide 12: Asset Management Segment Results
Table of Contents Asset (billions Net Non-interest FY2011/12 2Q 11.1 15.3 3Q 4.7 4.2 8 -6% QoQ 4.6 10.9 15.4 5.4 11.0 16.4 1Q 4.1 11.6 15.7 4Q – (1) (2) 16.0 Assets -3% YoY -15% -2% revenue Management (trillions 31.9 29.3 FY2011/12 Key Net Y15.4bn Income -booked client 2Q Y125.0bn Y120.1bn Nomura Y2
Slide 13: Asset Management: Assets under Management
Table of Contents Asset Assets (trillions 21.7 7.8 29.6 21.5 8.6 30.1 23.0 8.9 31.9 21.0 29.2 21.2 8.2 29.3 0.0 10.0 20.0 30.0 40.0 Sep. Flow -Investment 300 70 17 -114 241 -19 33 -187 97 -215 236 2Q 23.0% 22.0% FY2011/12 DC (thousands 1,000 3,000 4,000 5,000 people) 02/03 (billions 8 1,200 1,600 2,
Slide 14: Wholesale Segment Results
Table of Contents Non-interest Income QoQ + +5% +12% 0.2 136.9 137.1 -8.6 130.4 121.9 1Q 11.9 146.5 158.4 4Q 37.1 138.1 175.1 3Q -70.7 152.2 81.6 -N -10% (billions AEJ 32.8 44.3 45.0 15.0 30.1 41.0 35.5 15.4 40.4 55.5 42.5 20.1 78.9 45.4 29.3 21.6 41.6 14.1 17.6 8.3 0.0 50.0 100.0 150.0 200.0 FY2011
Slide 15: Wholesale: Fixed Income and Regional Revenues
Table of Contents Wholesale: (billions 87.0 76.4 FY2011/12 +114% YoY +24% 41.4 QoQ 2Q Key Well Consistent Rates: Credit: Uptick FX: Securitized Strongest Net 72% Japan International FY2010/11 1H Steady Client Smart Revenues Americas Rebound Driver EMEA Revenue AEJ (1) 11 3Q 2H revenue1 revenue: reve
Slide 16: Wholesale: Equities
Table of Contents Wholesale: (billions 33.4 37.1 39.6 51.6 QoQ YoY FY2011/12 2Q Key Net Client Market Liquidity Migrating Reorganization Investor Turnover International Cash Up AEJ, 4% EMEA Electronic Americas -13% -15% Trading AEJ 10% 7% Primary -5% (1) 35% 12 (2) (3) 3Q 4% due revenue revenue: Mar
Slide 17: Wholesale: Investment Banking
Table of Contents (billions Investment 33.3 32.2 40.5 45.1 23.8 (Net) -5 11.6 6.8 0.6 16.4 +141% YoY +24% QoQ 15.1 13.3 21.2 19.8 23.6 35.5 FY2011/12 -1.8 -1.4 -4.8 2Q Key Net Gross Involved In European – Leveraging Asia Americas EMEA Won M&A Cheung Permira Itochu (JPY78.6bn) Fresh Micron ($1.69bn)
Slide 18: Non-interest Expenses
Table of Contents Full (billions Excluding (Reference) 1 0 300 600 900 1,200 1,500 500 Compensation Commissions Information brokerage Occupancy communications Business depreciation Key 4.8% 5.7% -1.4% -8.2% 6.2% -0.3% 7.3% QoQ 366.3 132.2 11.2 22.1 45.1 21.9 133.7 349.6 125.1 11.3 24.1 42.5 22.0 124
Slide 19: Progress on Cost Reduction Program
Table of Contents Timeline Announced 57% NPE 43% PE Region 46% EMEA 21% Americas 15% AEJ 18% Japan 2Q FY2012/13 35% Wholesale: 20% Commenced Progress 100% FY2013/14 78% 75% 81% 2H Fy2012/13 27% Personnel – (1) 15Aim Aiming Significant Focused Communication Booked Postponing Business Controlling Cost
Slide 20: Robust Balance Sheet and Capital Position
Table of Contents Robust Balance Shareholders’ Y5.3trn Y0.7trn 10.6x 16.9x Y2.1trn Y35.4trn Liquidity Preliminary, RWA Total Tier June Sep 17.4% 13.0% 15.0% 13,942 2,429 212 320 2,097 Leverage 17.2% 13.1% 15.1% 13,998 2,422 215 319 2,115 (x) Gross 6.0 10.0 14.0 18.0 22.0 10.6 16.9 leverage1 30 32130
Slide 21: Funding and Liquidity
Table of Contents Highly Liquidity – Balance (As Assets Cash Liabilities Trading Other Total Unsecured Approx. Short-term within Long-term Breakdown Loans Bank retail MTN/Yen, bonds, wholesale MTN/Other, Euro Retail etc. Funding market Wholesale (1) debt long-term (2) (3) 17Y5.3trn, 77% Other Mainta
Slide 22: Exposure to European Peripheral Countries
Table of Contents Exposure GIIPS countries peripheral European Spain Portugal Italy Ireland Greece (US$m) 2,727 1,255 1,031 393 54 within 7 18 988 567 34 -61 441 after -14 1,201 421 95 totalinventory matures 460 229 -7 170 28 41 Total 1,739 688 -41 1,092 -47 47 months party Counter Of 1,230 357 161
Slide 23: Financial Supplement
Table of Contents Financial Supplement
Slide 24: Consolidated Balance Sheet
Table of Contents Consolidated (billions Assets equity 3,666 14,124 13,743 2,211 1,954 Short-term Liabilities (303) 24 399 (673) 590 (643) 3,690 14,522 13,069 2,802 1,310 Trading Other Long-term Equity Noncontrolling Total Mar. Sep. 35,697 282 2,107 33,308 8,505 1,166 7,495 12,519 2,437 1,186 (11) (
Slide 25: Value at Risk
Table of Contents Value2012 99% Definition 1-day Inter-product From Maximum: Minimum: Average: (billions Interest Equity Foreign Diversification Sub-total VaR 6.3 -4.1 4.5 4.1 1.8 6.0 -3.7 9.7 3.8 4.3 1.6 Dec. 5.2 8.8 2.8 4.0 Mar. 6.4 -3.6 10.0 3.5 5.0 1.5 Jun. 7.2 10.4 2.5 6.5 1.4 Sep. 5.4 -3.2 8.6
Slide 26: Consolidated Quarterly Financial Highlights
Table of Contents Consolidated Full 40 6% 8% (billions Quarter 30 4% Income Net Holdings, ROE Basic-Net shareholders Total FY2010/11 2,037.6 -46.1 -44.6 301.6 FY2012/13 FY2011/12 3.18 11.6 85.0 1,535.9 578.40 7.90 1.4% 2,082.8 28.7 93.3 1,130.7 -4 2,061.5 17.8 34.5 404.9 3Q 556.52 (1) 567.43 0.76 2,
Slide 27: Consolidated Results
Table of Contents Consolidated Full (billions Fees Commissions Revenue 1Q 4Q 3Q 2Q FY2010/11 FY2012/13 FY2011/12 Asset Gain Total Other Interest Non-interest Income Net 23 2.8 35.4 366.3 401.7 59.5 461.2 143.4 13.0 92.8 0.3 88.9 17.1 72.3 1.9 19.7 349.6 369.3 70.3 439.6 142.6 -7.1 103.5 -5.4 84.4 33
Slide 28: Main Revenue Items: Fees
Table of Contents Mainyear Full (billions Quarter Fees 1Q 4Q 3Q 2Q FY2012/13 FY2011/12 FY2010/11 Stock Commissions Equity Bond M&A Asset Other Administration Custodial 24 24.8 17.1 1.4 4.9 9.7 72.3 8.5 28.9 2.6 25.3 33.8 4.6 10.4 1.5 6.2 1.6 77.4 7.6 2.3 28.4 7.4 35.1 4.8 25.9 14.8 1.9 5.8 1.7 5.4 9
Slide 29: Adjustment: Income before income taxes by segment
Table of Contents Adjustment Full (billions Quarter Asset Retail 1Q 4Q 3Q 2Q FY2010/11 FY2012/13 FY2011/12 Three Wholesale2 Segments Other1,2 Unrealized securities Income (1) 35.4 12.4 23.1 7.3 15.7 0.2 4.6 11.0 19.7 -6.3 26.0 17.0 9.0 -8.6 5.4 12.2 60.8 9.9 50.9 14.6 36.3 11.9 20.3 34.5 -2.5 36.9 -
Slide 30: Segment Other: Income before income taxes
Table of Contents Segment Full 30 (billions Quarter 40 Net 1Q 4Q 3Q 2Q FY2011/12 FY2010/11 FY2012/13 FY2012.3 Realized Equity Corporate Income Others1,2 (1) 7.3 9.5 -7.0 3.3 0.6 1.0 17.0 11.1 6.6 -0.7 -1.2 14.6 19.9 -7.1 3.9 0.0 -2.1 -14.5 5.8 -29.0 1.3 -0.3 7.7 12.9 15.5 -8.6 2.0 -0.2 4.2 35.2 48.1
Slide 31: Retail Segment Results
Table of Contents Full revenue (billions Quarter Commissions 1Q 4Q 3Q 2Q YoY QoQ FY2012/13 FY2011/12 FY2010/11 Fees Investment Net Non-interest Income Domestic Bond Stock Foreign Accumulated Other Sales Retail (1) -20.4% -64.2% 5.7% -10.2% -12.9% -15.2% -13.3% 2.2% -4.7% -3.8% -11.2% -0.9% -3.2% -13
Slide 32: Retail: Commissions
Table of Contents Retail 1Q 4Q 3Q 2Q YoY QoQ FY2010/11 FY12/13 FY2011/12 Stock -5.7% -23.5% -6.9% -5.6% 30.2 32.4 7.4 38.2 11.1 25.6 7.0 32.0 9.2 139.9 36.0 170.1 51.4 Commissions Full 180 (billions Quarter 70 (1) 28 60 150 year 50 brokerage related 120 of 40 Nomura yen) 30 90 data for 20 60 commiss
Slide 33: Retail: Client Assets
Table of Contents Retail Full (trillions 100 Quarter FY2012/13 FY2011/12 FY2010/11 Dec. Mar. Jun. Sep. Foreign Equities Domestic Stock Bond Overseas Other (1) 67.3 6.3 33.4 68.2 2.2 1.3 12.9 34.4 65.0 6.9 31.8 66.1 2.1 4.2 7.0 13.1 5.7 32.6 72.0 1.4 4.4 7.7 12.7 6.2 37.2 70.6 2.3 1.5 4.1 8.3 12.8 5.
Slide 34: Retail: Net Asset Inflow
Table of Contents Retail Full 6,000 1,400 -10 647 185 260 1,107 Quarter FY2011/12 FY2010/11 2,400 3,942 (billions (1) 30 Net year 4,000 1,100 related client asset of yen) 2,000 800 assets: inflow data 500 0(4) Net =200 asset asset -100 inflow inflow1 – asset outflow. Retail client assets exclude por
Slide 35: Retail: Number of Accounts
Table of Contents Retail Number Mar. Accounts Equity Nomura Net 3,823 2,731 5,003 3,796 2,714 4,997 3,745 2,707 4,966 3,369 2,703 4,954 3,773 2,706 4,985 3,328 2,695 4,936 Full New 1Q 4Q 3Q 2Q FY2012/13 FY2012.3 FY2011/12 FY2010/11 (Thousands) Quarter IT No. Transaction (1) 54% 72 55% 52 64 29% 56%
Slide 36: Asset Management Segment Results
Table of Contents Asset (billions Net 1Q 4Q 3Q 2Q YoY QoQ FY2010/11 FY2012/13 FY2011/12 Non-interest Income (1) -3.2% -15.1% -1.5% -6.0% 4.6 10.9 15.4 5.4 11.0 16.4 4.1 11.6 15.7 4.2 11.1 15.3 4.7 11.2 16.0 20.5 45.3 65.8 20.0 46.5 66.5 Total 2 AuM Full 29.2 22.7 29.3 revenue Quarter 24.6 31.9 24.7
Slide 37: Asset Management: Assets under Management
Table of Contents Mar.11 7.8 21.7 8.6 21.5 21.0 8.2 21.2 8.9 23.0 8.4 24.3 FY2012/13 Nomura Group Assets Asset 6.9 29.6 1.6 23.3 6.8 30.1 2.4 25.5 22.6 6.5 29.2 1.3 22.7 6.6 29.3 1.2 2.3 24.9 24.6 7.3 31.9 0.3 0.6 1.5 2.6 27.0 24.7 8.0 32.7 0.2 0.5 1.8 2.8 27.3 Full (billions Quarter 1Q 4Q 3Q 2Q Inv
Slide 38: Wholesale Revenue Breakdown
Table of Contents Wholesale 6 B (billions FY2012/13 Fixed 1Q 4Q 3Q 2Q YoY QoQ FY2011/12 FY2010/11 Equities Other Net Non-interest Income Investment 2 4.5% -13.5% 23.9% 33.3 0.2 136.9 137.1 16.4 0.6 15.8 32.1 88.6 32.2 -8.6 130.4 121.9 13.3 -1.8 15.1 71.5 40.5 11.9 146.5 158.4 19.8 -1.4 21.2 51.6 87.
Slide 39: Wholesale: Private Equity Investments
Table of Contents Wholesale Private Full (billions 400 FY2012/13 FY2011/12 FY2010/11 Quarter Dec. Mar. Jun. Sep. Europe Japan Sub Asia Terra 35 206.4 121.8 84.6 1.7 23.9 58.9 206.0 120.7 85.3 1.6 24.1 59.6 208.9 110.9 98.0 2.1 24.7 71.2 286.4 111.3 175.1 2.3 146.0 221.3 127.2 94.1 1.9 26.8 65.5 327.
Slide 40: Number of Employees
Table of Contents Number Dec. Mar. Jun. Sep. Japan 1 34,815 6,430 2,425 3,940 1,981 20,039 35,063 6,454 2,423 3,975 2,014 20,197 34,395 6,352 2,420 4,014 2,011 19,598 34,933 6,394 2,466 4,143 2,048 19,882 35,697 6,485 2,537 4,492 2,078 20,105 35,630 6,452 2,383 4,436 2,096 20,263 26,871 5,252 2,348
Slide 41: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com