Nomura Holdings, Inc. · TSE:8604
Nomura — FY2008.3 Q4 Earnings Presentation
49 slides from Nomura's earnings presentation, Apr 28, 2008
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 Supplement for the month of April 2008. NOMURA HOLDINGS, INC. (Translati
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 2008
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: April 28, 2008 By: /s/ Toshio Hirota Toshio Hirota Execut
Slide 4: Consolidated Results of Operations (US GAAP), Fourth quarter, year ended March 2008
Table of Contents Consolidated (US Fourth 7Nomura April GAAP) quarter, 2008 Holdings, Results yearInc. ended of Operations March 2008
Slide 5: Important notice
Table of Contents 1. The 2. securities or 3. 4. accepted 5. must their liquidity 26. This Nothing No sales nature, be part information consolidated document may read of by issued of in secondary Nomura are be in this this the made. inherently by document is contains document and context Nomura finan
Slide 6: Presentation Outline
Table of Contents Presentation Outline Monoline-related Monoline US Financial FY2008.3 Business Example Non-interest Dividend Net Main Adjustment -Income Consolidated Domestic Global Asset Fourth League Market Value 3Number P31) Mortgage Income Factors Revenue Management atQuarter Merchant Share Tab
Slide 7: Management Keywords and New Management Structure
Table of Contents New Introduction 4-Top “Create Made Reduced Management Management credit Change”, USprovisions CMBS-related Directly Lineup “World atfrom Engaged end Class”, business of April March “Speed” in1,Risk exposure 2008 to Management fully Keywords cover exposure Moved to decisively monol
Slide 8: Fourth Quarter Results Key Points
Table of Contents Main Loss for Unrealized Stable FY2008.3 therefore Shareholders’ Domestic 5booked exposure of Causes Financial third approx. having Retail, Results Pre-tax net loss to straight of equity loss monoline of 132 Fourth and only Global Loss Key approx. represents billion Revenue of rati
Slide 9: FY2008.3 Financial Highlights
Table of Contents FY2008.3 Financial Highlights FY2007.3 FY2008.3 Net revenue 1,091.1 787.3 Income (loss) before income taxes 321.8 -64.6 Net income (loss) 175.8 -67.8 ROE (%) 8.3% -3.3% Total shareholders’ equity 2,185.9 1,988.1 (billions ofFY2008.3 FY2007.3 yen) 4Q 1Q 311.3 83.2 33.1 6.0% 2,185.9
Slide 10: Main Factors of Fourth Quarter Loss before Income Taxes
Table of Contents Main Factors of Fourth Quarter Loss before Income Taxes Loss before Income Main Factors Taxes (billions of yen) 198 132 Monoline-related losses 22 US CMBS-related business losses 18 JAFCO writedown 717 Unrealized loss on investments in equity securities held for operating purposes
Slide 11: Monoline-related Exposure
Table of Contents Monoline-related (millions 2007/12/31 Other Monoline 2008/3/31 AAA Others 8*(Provisions Based (5) (3) (1) (2) on $731 $903 of $194 Insurers by $1,278 S&P by completed) US$) Credit $93 $160 Credit $194 orExposure $1,278 Counterparty $637 Moody’s $743 Rating* -Rating* $329 — $416 $15
Slide 12: Monoline Provisions and Exposure
Table of Contents Monoline Monolines End Net 795 Exposure Z By After Gross 1,107 Current 9Provision Co. making exposure Provision ofprovisions Z exposure 3Q response Co. increased 201 ratio: Exposure rated provisions Gross to94Net to 18% monolines A for and monolines or exposure due exposure and ZCD
Slide 13: US Mortgage-related Exposure
Table of Contents US 300 250 150 168.4 200 100 050 (billions FY 1Q Exposure Securitized Secondary 10050 2Q 2008.3 Mortgage RMBS-related 350 212.5 131.1 47.8 7.5 3Q266.0 of0266.0 4Q bonds FY yen) products Finance Exposure 2008.3 300 47.8 (billions 6.7 US 287.5 2.1 7.5 0.3 Business CMBS-related 1Q 1.6
Slide 14: Balance Sheet and Shareholders' Equity Ratio
Table of Contents Balance Equity/Total Total (trillions 40 35 30 25 20 15 0510 Mar. *Shareholders’ Issued Raised Lay 111.0% 0.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% foundation 2007 Assets 120 subordinated Sheet ofMar. billion yen) (1hs) Assets) and Equity for 2008 Shareholders’ yen Shareholders’ proa
Slide 15: Business Segment Results
Table of Contents Business 446.5 -305.8 95.6 200 243.1 236.0 300 290.0 284.1 371.1 400 500 -300 -200 99.7 120 0F 20 40 68.2 80 (billions -20 90.1 100 70 Net FY2008.3 FY2007.3 FY2006.3 FY2005.3 FY2004.3 FY2003.3 Asset Global Domestic Income 12 100 Y2003.3 75.4 65.0 65.8 Revenue 99.2 90.6 Management 4
Slide 16: Financial Supplement
Table of Contents Financial Supplement 13
Slide 17: Segment Results Full Year
Table of Contents FY2008.3 Trading M&A-related Continued Third Net 1,200 8.4 65.8 900 729.5 65.0 99.2 446.5 300 Income (billions 452.0 600 20.6 377.3 23.9 51.5 225.5 7.0 17.2 0-89.2 -100 FY2003.3 -300 -17.6 -200 •Reference: Asset Other Global Domestic Note: Investment 14 6.6 15.3 Asset Adjustment Do
Slide 18: Segment Results Fourth Quarter Highlights
Table of Contents Fourth Net 283.6 10.1 347.4 400 15.2 20.8 -94.6 -133.3 Income (billions 142.6 200 12.2 100 8.0 50 7.7 05.4 -3.9 -50 -100 FY2007.3 -6.3 -200 -150 4Q •Reference: Asset Other Global Domestic Note: Investments 15 10.2 Asset Adjustment Domestic Global Segment 11.1 23.9 1Q 20.7 24.4 2.5
Slide 19: Retail Segment Results
Table of Contents *Domestic ** Full 446.5 500 Sales 197.2 122.3 Commissions Fees Investment Net Income (billions Quarter 150 100 98.4 103.3 43.3 50.6 0F 11.1 QoQ 4Q 73.9 5.1 13.4 5.5 124.1 •Reference: •Fourth 16 Y2003.3 Y2007.3 Retail Domestic Number From Nomura 1Q 3.4 2.2 asset Revenue interest rev
Slide 20: Global Markets Segment Results
Table of Contents Global Full 400 284.1 95.6 -200 -300 FY2003.3 Fixed Equity Other Net Non-interest Income (billions Quarter 160 Reference: •040 -67.7 FY2007.3 QoQ 4Q 21.8 66.6 6.2 94.6 70.6 23.9 Notes: 2. 17 Value Fourth Market Figures Achievements: 1Q 4.6 Revenue revenue 371.1 108.9 Year 200 42.4
Slide 21: Example of Synthetic CDO Business
Table of Contents Example CDS Premium Market Payment Reference Investment High-grade Repackage Nomura Repackaged Tranches A AA AAA E B Tranche Monoline CDO *SPC Investors Sell ** 18quity iTraxx: BBB CMBX: transaction origination BB CDS on of Super Corporate Insurer asset assets CDS grade US CMBX** S
Slide 22: Investment Banking Segment Results
Table of Contents Global tables* In *Apr. Full 99.7 120 160 80 83.1 44.4 51.5 Incom FY2003.3 Net Income (billions Quarter 40 30 5.7 Reference: •-3.9 FY2007.3 QoQ 4Q 26.6 Note: 19Fourth League Market equity M&A, 75.4 36.7 26.6 1Q 0.2 Revenue revenue Year 99.2 29.2 36.7 YoY In 2007 e2Q Investment 0bef
Slide 23: Merchant Banking Segment Results
Table of Contents Global Unrealized Full 65.0 68.2 80 40 I7.3 FY2003.3 Net Income (billions Quarter 40.1 45 43.4 60 0520.1 FY2007.3 QoQ 4Q -0.9 4.2 -5.2 Business Reference: 20 ncome .455.4 1Q 0.5 -10.2 3.3 Revenue revenue Year 43.4 40.1 64.8 30 15 YoY 2Q Merchant 3.0 before 52.8 23.1 8.5 of exposure
Slide 24: Asset Management Segment Results
Table of Contents Total Sales *As Full 90.1 100 40.4 49.0 60 65.8 80 40 20.6 (billions Quarter 30 20 12.2 2.5 0R Assets Asset FY2003.4 Net Income FY2007.3 QoQ 4Q 24.1 8.0 Note: eference: 31.0 26.4 17.3 1Q 5revenue 12.2 Revenue Year of 90.6 40.3 20 15 26.4 YoY assets of In Management Under end 2Q bef
Slide 25: Other Segment Results
Table of Contents Segment “Other” Full 20 23.9 (billions Quarter 0-60 -3.4 -20 -7.0 FY2003.3 -40 Net -6.2 1.7 Corporate Income FY2007.3 Q 4Q -1.1 0.3 4.7 *Businesses Note: for 20o40 0.510.1 Investments 1Q 1.2 2.1 5.1 -17.6 17.6bn Revenue gain/loss QYear -0.9 -6.3 -12.8 -14.4 Reclassifications- 20 Y2
Slide 26: Non-interest Expenses
Table of Contents Non-interest 1,000 Other 851.8 800 219.8 Business Commissions Compensation Full (billions 366.8 400 300 250 192.1 93.5 100.7 150 200 160.7 100 150.5 174.7 47.9 45.6 50 47.8 0F 4Q QoQ0 1Q 30.6 •93.5 Variable-type 227.3 communications Fixed-type 78.4 Year 94.4 300 680.5 350 250 Y2007
Slide 27: Dividend Policy and Shareholder Return
Table of Contents Dividend Target Full-year (based Recent share) 44 34 Additional FY2006.3 23 *Total ** Total 48% +-a 0 Excludes Share 141 Return 1Q Dividend on Return Dividends Consolidated Policy 84 DOE 2Q FY2007.3 Buyback Payout Payout- purchase Ratio*(billions Ratio 67 3Q Ratio of Minimum 4Q (pe
Slide 28: Net Income, EPS and ROE
Table of Contents Full income (billions 400 300 15.5% 200 304.3 10.1% ROE -100 -3.3% FY2003.3 Net Basic Shareholders’ Note: Investment 25 Income 20% 15% 8.3% Year -5% (rhs) The netofincome 10% above FY2004.3 0yen) Companies” (loss) (Loss) 0% equity 7.4% -67.8 amounts per 119.9 (lhs) andper 172.3 FY2
Slide 29: Consolidated Income Statement (Annually)
Table of Contents Consolidated (billions FY2003.3 Commissions Revenue Fees Interest Gain Other Income Net Note:1. as 2. Companies The income gain income from (loss) 13.4 above In and from before of onfrom investment FY2004.3 accordance 23.6 on yen) and from 119.9 trading dividends amounts continuing
Slide 30: Consolidated Income Statement (Quarterly)
Table of Contents Consolidated (billions FY2007.3 1Q QoQ Commissions Revenue Fees Net Interest Gain Other expenses Note: Investments 2Q gain from (loss) Reclassifications- 4.2 3Q and of on 172.5 11.7 investment FY2008.3 4Q on yen) trading dividends inIncome 79.6 1Q private investm 45.4 Investment 17
Slide 31: Main Revenue Items (Annually)
Table of Contents MainGain FY2003.3 Stock trusts Equity Other Banking Asset Administration Management Bonds Net Trading* *Includes Note: Investment 28 Revenue 30.5 Asset The 26.0 3.4 brokerage and underwriting Merchant on 0.1 net above FY2004.3 37.3 other 23.2 Companies” management 0.1 interest Item
Slide 32: Main Revenue Items (Quarterly)
Table of Contents Main (billions FY2007.3 1Q QoQ Stock Commissions Other Equity Investment Asset Administration Management Bonds Net Trading* -Net Total *Includes Note: Investments 2Q Gain interest 14.4 67.8 Revenue Asset Reclassifications- 9.2 brokerage and underw 3Q of Merchant on 10.3 net FY2008.
Slide 33: Consolidated Segment Results (Annually)
Table of Contents Adjustment (billions FY2003.3 Domestic Global -14.4 Unrealized Effect Income US operations Total Notes:1. as 2. 4. 5. 6. Investment The Global In income GAAP April January 47.4 -of above Markets Investment Merchant from of In consolidation/deconsolidation Markets Retail from FY2004
Slide 34: Consolidated Segment Results (Quarterly)
Table of Contents Adjustment Income (billions FY2007.3 31 QoQ 1Q Domestic Global 5Asset Other Segment Unrealized Effect Total Note: impairment(Loss) Businessof consolidation 2. Investments FY2008.3 yen) of Consolidated before Reclassifications- 2QYoY 33.4 1. Management -23.0 of 3Q Markets Investment
Slide 35: Consolidated Balance Sheet
Table of Contents Consolidated Cash Assets Loans (billions Mar. Short-term Liabilities Payables Collateralized Trading Other Long-term Shareholders' Total Note: Investment 32 31, and assets shareholders' liabilities The assets liabilities and assets liabilities of 2007 and cash above receivables bor
Slide 36: Retail Related Data (1)
Table of Contents Full2Q FY2008.3 1Q Commissions Investment Domestic Bond Stock Foreign Other Accumulated Sales *Retail 33 Year Nomura credit of investment (billions brokerage investment foreign 3Q investment JGBs Quarter Retail distribution FY2003.3 4Q trust (billions value Securities for currency
Slide 37: Retail Related Data (2)
Table of Contents (trillions 100 61.2 Domestic Mar.31, *** 88.3 Equities Foreign Dom Stock Bond Overseas Other*** *Total ** investment investment Domesticof 85.2 Includesmutual 80.5 Retail Client bonds** Includes estic 40.6 2003 investm investmyen) 84.3 currency 17.1 m 1.6 54.8 81.3 Mar.31, Related
Slide 38: Retail Related Data (3)
Table of Contents Domestic Full (billions 8,000 FY2008.3 35 1Q Year 6,749 *Domestic 2Q 3QofQuarter Retail Client FY2003.3 yen) 4Q5,975 ClientRelated Assets 6,000 FY2004.3 AssetsNet 4,868 Data Asset (3) 4,581 FY2005.3 excludes Inflow 4,000 portion *from FY2006.3 3,391 2,000 FY2007.3 regional 1,788 1,
Slide 39: Retail Related Data (4)
Table of Contents Domestic Number Mar. (thousands) Accounts Equity Nomura Full FY2008.3 1Q New IT *Transaction 36 share** **IT2Q Year 31, accounts holding 3Q of Home 2003 Quarter with shareRetail FY2003.3 Total 4Q No. Accounts* value is Mar. (individual) balance Trade accounts ofof the Related order
Slide 40: Merchant Banking Related Data
Table of Contents Global Business (billions 600 231.2 Mar. Japan Europe Sub Terra Total Notes: 2. 37 Amount 543.4 Total 31,2003 301.6 Firma 219.6 35.9 20.1 1. Merchant (excluding of Amount Exposure 35.9 546.8 of 0yen) 68.9 375.7 200 265.7 209.6 exposure Mar. 84.5 108.4 132.1 500 Banking 457.6 of 291
Slide 41: Asset Management Related Data (1)
Table of Contents Asset Total (trillions 35 25 15 Mar. Notes: Nomura Private 2006, 2. 38 Nomura 30.6 23.1 10 31, Assets Management 51. include Equity 30.3 20 0Funds 2003 of Total 17.6 Funds yen) Under 29.7 Nomura Mar. Funds assets Research 17.9 Research 30Management Related 31, 27.0 15.9 Research un
Slide 42: Asset Management Related Data (2)
Table of Contents Asset Nomura (trillions 30 25 15.7 20 21.0 39 Management (trillions Assets Mar. Investment Total Full FY2008.3 1Q Exclude Net Privately Overseas Public Domestic 2Q Asset Year 31 14.2Asset of stock bond Under 3Q 29.2 Mar. ETF of yen) 24.3 16.0 placed Management 28.9 15 investment Qu
Slide 43: Asset Management Related Data (3)
Table of Contents (trillions Mar. Domestic Investment Public Trust Asset Market Source: (billions AUM Supplied Banks Japan *Excludes My Nomura Global Funds Stock 40 Story 31, Market Management Post Fund of and Nomura stock Attractive REIT Share Investment Global of 2003 Products of to Profit Stock J
Slide 44: Fourth Quarter Business Achievements
Table of Contents Fourth Domestic Global M&A Global Joinvest European Nomura Major IPO CB REIT Quarter Markets Yamada Seven Retail Newly-launched JPM Existing New Large Oesterreichische Westpac: Equity Emerging Bond Nippon SecuritiesAchievements International Tender Deals Derivatives: Investment Afr
Slide 45: League Tables
Table of Contents League Global Source: Any Announced Domestic R 987654321Mkt. 10 42UBS Deutsche Barclays BNP JP Citi Morgan Lehman Mizuho Daiwa Mitsubishi Nomura Nikko Shinko Merrill Goldman Credit Apr. Shinko Bank UBS Morgan Japanese Share 14,063.1 1, Paribas 437.3 Equity &Tables Thomson 9,040.7 1
Slide 46: Market Share Data
Table of Contents Full Year Secondary Primary FY2003.3 Individual Off-floor/Off-exchange Off-floor JGB Bond Market Nomura Auction Secondary 52.0 68.1 1,129 Market Securities’ market FY2004.3 Equity Market 105.9 74.4 Share 1,235 Share Trading 33.2 80.1 Agency Share 144.7 share 1,361 FY2005.3 31.9 Dat
Slide 47: Value at Risk
Table of Contents Valueof 99% Definition 1-day Inter-product End Equity Sub-total From Maximum: Minimum: Average: (billions 44 confidence April time at1.5 the Risk of 6.2 4.0 period 3.3 4.6 horizon yen) 10.1 2,5.8 price 2007 3.0level 6.5 Mar. 6.0 fluctuations for to10.7 (2.33 4.6 March outstanding 2
Slide 48: Number of Employees
Table of Contents Number Mar. Japan 14,024 Note: Certain 45 2003 Headcount (excluding 14,390 reclassifications ofMar. Employees 14,932 2004 FA, Mar. figures SA)* 16,854 of have 2005 previously 9,285 18,026 been Mar. 9,185 reclassified 2006 reported 9,236 Mar. 9,618 amounts to2007 include 10,667 Mar.
Slide 49: Nomura Holdings, Inc.
Table of Contents Nomura Holdings, Inc. www.nomura.com