Nomura Holdings, Inc. · TSE:8604
Nomura — FY2021/22 Earnings Presentation
34 slides from Nomura's earnings presentation, April 2022
Slide 1: CFO overview of full year and fourth quarter results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the full year and fourth quarter of the fiscal year ended March 2022 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Presentation and Financial Supplement contents
Presentation Financial Supplement © Executive summary (p. 2-3) © Overview of results (p. 4) © Business segment results (p. 5) © Retail (p. 6-7) © Investment Management (p. 8-9) © Wholesale (p. 10-12) © Non-interest expenses (p. 13) © Robust financial position (p. 14) © Funding and liquidity (p. 15)
Slide 3: Full-year results overview
First, let’s look at the full-year period. As you can see on the bottom left, net revenue was 1,363.9 billion yen, down 3 percent year on year. Income before income taxes declined 2 percent to 226.6 billion yen. The chart on the bottom right gives a breakdown of income before income taxes. The third
Slide 4: Fourth quarter results overview
As shown on the top right, income before income taxes was 49.5 billion yen, down 38 percent quarter on quarter, while net income was 31 billion yen, a 49 percent decline from last quarter. EPS was 9.89 yen and annualized ROE was 4.3 percent. The bottom right shows three segment income before income
Slide 5: Highlights
Highlights ew = 1 Y1,363.9bn [ -3% Y1,137.3bn | -3% Y226.6bn [ -2% Y143.0bn, | 1% Y45.23 7% 5.1%
Slide 6: Net revenue and income (loss) before income taxes
Net revenue and income (loss) before income taxes’ - Y5.6bn 51% “Additional information on |= Realized gain on partial sale of stake in the affiliate company, Nomura Research Institute (Y42.8bn) “Other’ (4Q) ® Loss related to economic hedging (Y8.4bn) | Booked additional expenses (Y23bn) related to
Slide 7: Retail fourth quarter results
Retail reported fourth quarter net revenue of 70.5 billion yen, down 19 percent quarter on quarter. Income before income taxes declined 71 percent to 5.2 billion yen. The bear market from the beginning of the year led some investors to buy on the dip, but investor sentiment worsened significantly as
Slide 8: Retail KPIs and full-year results
The market also impacted our main KPIs in the fourth quarter, but on a full-year basis we saw results in our areas of focus. The table on the top right shows investment trust net inflows of 260 billion yen and discretionary investment net inflows of around 360 billion yen, both of which improved fro
Slide 9: Investment Management fourth quarter results
Fourth quarter net revenue was 10.1 billion yen, a sequential decline of 75 percent. Business revenue remained solid at 31.1 billion yen. Assets under management declined slightly due to market factors, impacting management fees but strong performance led to an increase in performance fees. Investme
Slide 10: Investment Management asset flows and AUM
The grey bar in the graph on the top left shows investment advisory and international businesses outflows of 190 billion yen from foreign bonds and UCITS funds. However, the red bar representing the investment trust business shows inflows of around 370 billion yen as investors bought more ETFs durin
Slide 11: Wholesale net revenue and income
As shown on the top left, net revenue was 194.9 billion yen, down 4 percent quarter on quarter, and income before income taxes declined 9 percent to 37 billion yen. The graph on the bottom left gives a breakdown of net revenue by region. Revenues in the Americas and AEJ declined on a slowdown in spr
Slide 12: Wholesale Global Markets results
Global Markets net revenue declined 3 percent quarter on quarter to 158.2 billion yen. Diversification across regions and products helped us deliver solid results amid market turbulence. Fixed Income net revenue was 80.1 billion yen, down 9 percent. Client flows slowed on credit spread widening and
Slide 13: Investment Banking results
Fourth quarter net revenue remained strong at 36.7 billion yen, a 6 percent decline from last quarter. The market slump led to an increase in ECM and ALF deals being postponed, but the advisory business reported revenues above the particularly strong previous quarter. The top right gives a breakdown
Slide 14: Non-interest expenses
Fourth quarter non-interest expenses were 291.3 billion yen, an increase of 8 percent over last quarter. This was mainly due to Other expenses shown at the bottom. This includes additional expenses of 23 billion yen related to the RMBS issue I mentioned earlier. Compensation and benefits declined 10
Slide 15: Robust financial position
As shown in the table on the bottom left, Tier 1 capital was 3.1 trillion yen, up 60 billion yen from the end of December due mainly to FX translation adjustments because of yen depreciation. Risk assets were 15.9 trillion yen as market risk increased on higher market volatility and credit spread wi
Slide 16: Balance sheet structure
Balance sheet structure Highly liquid, healthy balance sheet structure —74% of assets are highly liquid trading and related assets that are marked-to-market and matched to trading and related liabilities through repos etc. (regionally and by currency) —Other assets are funded by equity Balance sheet
Slide 17: Financial Supplement
Financial Supplement 16
Slide 18: Consolidated balance sheet
Consolidated balance sheet (billions of yen) Total cash and cash deposits ‘Short-term borrowings Total payables and deposits Total loans and receivables Total collateralized financing Trading liabilities Total collateralized agreements Other liabilities Long-term borrowings pata ety ester! Tol aes T
Slide 19: Value at risk
= Definition = From April 1, 2021, to March 31, 2022 (billions of yen) — 95% confidence level — Maximum: 23.2 — 1-day time horizon for outstanding portfolio = Minimum: = 2.7 — Inter-product price fluctuations considered — Average: 45 (ons of yn) ae ees
Slide 20: Consolidated financial highlights
1. Full year Quarter 200 153.14 1430 "=== Net income (loss) -* 4 attributable to 10 Nomura Holdings, Inc. ("NHI") shareholders ° ROE (%) 100 -200 ras Pranevze 4a 10 QQ Net revenue 1,401.9 1,363.9 170.0 353.3 318.9 351.0 340.8 Income (loss) before income taxes 230.7 226.6 166.1 785 18.5 80.1 49.5 Net
Slide 21: Consolidated income
Full year Quarter onowonen) rman rae Og Revenue Commissions 376.9 32.3 102.4 82.9 916 826 76.2 Fees from investment banking 108.7 149.6 347 67 B9 46.0 34.0 Asset management and portfolio service fees. 230.0 270.0 60.3 64.0 67.2 699 68.9 Net gain on trading 310.0 368.8 -96.9 52.0 911 106.8 118.9 Gain
Slide 22: Main revenue items
(billions of yen) Full year Quarter ‘Stock brokerage commissions 2623 236.4 728 58.2 e717 57.3 53.1 Other brokerage commissions 143 18.0 36 37 40 48 5.5 Comms sions for distribution of investment trusts. 688 43.7 17.4 14.4 11.2 11.6 6.5 Other 31.6 34.3 8.6 66 88 89 10.1 Total 376.9 332.3 102.4 82.9
Slide 23: Income before income taxes by segment and region
Adjustment of consolidated results and segment results: Income (loss) before income taxes! Full year Quarter ov ramon vag ae Retail 92.3 2 26.1 17.0 180 5. Investment Management 91.0 35.2 449 15.0 20.4 8.8 Wholesale 64.3 ~165.9 “28.4 25.0 408 37.0 Three business segments total 2476 -104.5 35.6 57.0
Slide 24: Segment Other
Income (loss) before income taxes* Full year Quarter (billions of yen) 80 40 | 285 80 15.8 17 662 Net gain (loss) related to economic 115 9.9 13.5 34 38 Ad 84 Realized gain (loss) on investments in equity fies held for ing purposes 17 1.4 02 02 0.0 00 441 Equity in earnings of affiliates 16.4 36.8 3
Slide 25: Retail results data
Full year Quarter (billions of yen) Commissions 1877 138.5 51.0 386 356 36.5 278 -BB% = —-45.4% Of which, stock brokerage commission 926 4 259 178 176 176 144 18.0% = -44.2% Of which, r for of trusts 84 435 16.0 144 14 116 65 44.2% 89.8% Sales credit 58.4 40 144 11.6 11.9 114 91 203% 35.6% Fees from
Slide 26: Retail client assets
Retail client assets (trillions of yen) we Oiias 140 127.0 128.7 125.0 1221 120 "Foreign investment cus 100 ‘= Bond investment trusts 80 = Stock investment trusts 60 = Domestic bonds. 40 "Foreign currency bonds 20 = Equities 0 Equities 82.6 84.4 797 715 Foreign currency bonds 53 53 52 541 Domestic b
Slide 27: Net inflows of cash and securities
Net inflows of cash and securities! Full year Quarter (billions of yen) (billions of yen) 1,200 1,200 888 800 800 641 4m 400 351 400 315 a 0 0 : | | 146 -400 -400 613 -800 -800 aaa = 26 26
Slide 28: Number of accounts
Number of accounts (iovsands) —Pr2oao21 Fy2o2ti22 = Fy202021 02 Accounts with balance 5,329 5,348 5,329 5,348 5,342 5,362 6,348 Equity holding accounts 2,927 2,955 2,927 2,924 2,923 2,949 2,955 NISA accounts opened (accumulated)' 4,791 1,589 4,791 1,820 1,828 1,839 4,589 Online service accounts 4,89
Slide 29: Investment Management results and AUM
Full year* Quarter" mm ZS rr i a ee oe 280 293 315 Be 1% 43% Business revenue 1119 1199 299 gainvioss 512 284 242 365 51 86 24 - - Net revenue 1632 1480 540 635 343 4 101 748.4% Non-interest expenses 721 765 188 186 193 198 189 4.0% 04% Income loss) before income taxes 910 15 352 449 150 24 88 - - A
Slide 30: Asset inflows/outflows by business
Asset inflows/outflows by business’ Full year Quarter — Hare = EEE Investment trusts business 2,753 1,236 250 372 of which ETFs 2241 683 268 344 -28 15 383 Investment adusory and international busi 883 819 765 128 772 109 189 Total net asset inflow 1,870 2,055 -373 414 1,039 359 183 Domestic publi:
Slide 31: Wholesale results and revenue breakdown
Full year Quarter (billions of yen) “em res a a Net revenue 691.4 1328 1727 2027 194.9 Non-interest expenses 627.1 628.6 165.2 161.1 147.7 161.9 157.9 25% 44% Income (loss) before income taxes 64.3 74.5 165.9 28.4 25.0 408 37.0 9.3% - Breakdown of Wholesale revenues Full year Quarter (billions of ye
Slide 32: Number of employees
2,811 2171 6,151 6,216 Includes Powai office in india
Slide 33: Disclaimer
NOMURA Disclaimer This document is produced by Nomura Holdings, Inc. (“Nomura”). Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com