Nomura Holdings, Inc. · TSE:8604
Nomura — Investor Day (December 2002)
43 slides from Nomura's investor day presentation, Dec 6, 2002
Slide 1: Investors' Day: Domestic Retail
INVESTORS’ DAY Domestic Retail Takashi Yanagiya Director Nomura Holdings, Inc. December 2002 This is a summary of a presentation for INVESTORS’ DAY. Date: 6 December, 2002 (Friday) Place: 7th floor Nomura Securities Co., Ltd. Speaker: Takashi Yanagiya Head of Domestic Retail, Director, Nomura Holdin
Slide 2: Outline of Presentation
Domestic Retail Outline of Presentation ! Review of Segment Operating Results ! Business Strategy ! Product Strategy 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2002 Nomura Holdings, Inc. All rights reserved. 2. Nothing in this document shall be considered as an offer
Slide 3: Review of Segment Operating Results
Domestic Retail Review of Segment Operating Results 3 3
Slide 4: Review of Segment Operating Results
Domestic Retail Review of Segment Operating Results Net income (Billions of yen) Income before income taxes 140 133.2 123.8 120 114.6 100 80 60 40 20 25.4 15.3 10.2 0 FY01.3 (1/2) FY02.3 (1/2) FY03.3 (1H) 4 I would like to start my presentation with a review of the segment’s operating results. Domes
Slide 5: Revenue Breakdown (approx. figs.)
Domestic Retail Revenue Breakdown (approx. figs.) Bonds Equities Investment trusts (distribution fees) Investment trusts (administration fees) Variable annuity insurance 100% 4% 14% 90% 24% 17% 30% 80% 24% 70% 13% 17% 16% 60% 50% 30% 35% 40% 52% 40% 30% 20% 32% 28% 10% 15% 10% 0% FY00.3 FY01.3 FY02.
Slide 6: Domestic Retail Division Target Markets
Domestic Retail Target Markets ! Multiplier effect resulting from pursuing business in both the individual client and corporate and public sector markets Domestic Retail Division Corporate & Individual Market Public Sector Market ! Wealthy Investors • Regional Listed Companies ! Affluent Investors •
Slide 7: Client Assets (excluding financial institutions)
Domestic Retail Client Assets (excluding financial institutions) (Trillions (Trillions of of yen) yen) 28.1 tril. yen at end of Sept. Nikkei Nikkei Stock Stock Average Average Other Other Investment Investment Trusts Trusts 20 20 Domestic Domestic Bonds Bonds Foreign Foreign Currency Currency Bonds
Slide 8: Net Asset Accumulation (monthly average)
Domestic Retail Net Asset Accumulation (monthly average) (Billions of yen) 800 800 727.1 600 600 457.9 400 400 Monthly Average 132.5 200 200 181.7 166.1 115.0 98.8 00 FY01.3 FY01.3 1H 1H FY01.3 FY01.3 2H 2H FY02.3 FY02.3 1H 1H FY02.3 FY02.3 2H 2H FY03.3 FY03.3 1Q 1Q FY03.3 FY03.3 2Q 2Q Net asset acc
Slide 9: Nomura Home Trade Accounts
Domestic Retail Nomura Home Trade Accounts IT Share 38.7%* (Millions of accounts) 1.08 million accounts** 1.0 0.8 0.6 0.4 0.2 0 2000 2001 2002 *IT share is based on the number of orders for the six months ended September 30, 2002 9 ** As of the end of September 2002 Nomura Home Trade (our online tra
Slide 10: Business Strategy
Domestic Retail Business Strategy 10 10
Slide 11: Increasing Customers' Trust in Nomura
Domestic Retail Increasing Customers’ Trust Expanding business in anticipation of further growth in the securities market Expand customer base & realize sustainable profit Progress of business model in anticipation of further growth in the securities market Increasing Customers’ Trust in Nomura 11 N
Slide 12: Core Value Formation
Domestic Retail Core Value Formation Core Value Defined as what customers regard as most important and are willing to pay for Serve customers by focusing on their core values Core Value Formation 12 In order to achieve this, we are pursuing Core Value Formation. Core value is defined as what custome
Slide 13: Core Value Formation (Individual Market)
Domestic Retail Core Value Formation (Individual Market) Wealthy Investors Estimated financial assets Affluent Investors Asset Builders No. of Investors 13 I will now explain more concretely our strategy regarding our target markets. First, the individual market. This slide is an outline of the indi
Slide 14: Core Value Formation: Wealthy Investors
Domestic Retail Core Value Formation (Individual Market) Financial Wealthy Investors Provide Provide higher higher Consulting value-added value-added services services Section Financial Consulting Section Increase Increase client client asset asset Affluent per per customer customer Investors Asset
Slide 15: Financial Advisory Channel
Domestic Retail Core Value Formation (Individual Market) Financial Consulting Section Wealthy Investors Financial Consulting Section FA Section* Financial Affluent SA Section ** Advisory Investors Financial Channel Advisory Section Asset Builders *FA Section: Financial Advisor Section 15 **SA Sectio
Slide 16: FA Section and SA Section
Domestic Retail Core Value Formation (Individual Market) Financial Advisors FA Section Professional advice on how to manage your assets SA Section Saving Advisors Expanding assets from a wider range of affluent investors Deep penetration into regional society → senior citizens 16 As of October 2002,
Slide 17: Customer Services & Investment Advisory Section
Domestic Retail Core Value Formation (Individual Market) Financial Consulting Wealthy Financial Section Investors Consulting Section FA Financial Section Advisory Affluent Channel Financial SA Investors Advisory Section Section Segmentation Customer Services & Investment Customer Services Advisory S
Slide 18: Per Customer Cost
Domestic Retail Per Customer Cost (Customer Services & Investment Advisory Section) (%) (%) Client Client Assets Assets 200 200 No. No. of of 150 150 Customers Customers 100 100 Per Per Customer Customer Cost Cost 50 50 98.9 98.9 99.3 99.3 99.9 99.9 00.3 00.3 00.9 00.9 01.3 01.3 01.9 01.9 02.3 02.3
Slide 19: Corporate Employees Investment Plan Business
Domestic Retail Corporate Employees Investment Plan Business Corporations with ESOP Nomura Securities Administration for ESOP E-Net Rationalization of ESOP administration ESOP Members E-Plan Investment information supply via intranet Corporate Intranet E-Support Open accounts & transfer stock certif
Slide 20: Branch Office Strategy
Domestic Retail Branch Office Strategy Nakano Branch Office: 15 October Chofu Branch Office: 18 November 20 As the last topic in core value formation for individual markets, I would like to touch on our branch strategy. As for the opening of new branch offices, we opened Nakano Branch Office in Octo
Slide 21: Core Value Formation (Corporate Market)
Domestic Retail Core Value Formation (Corporate Market)1 Medium Sized Regional Financial Enterprises Institutions Corporates Local Government Entities & Other Listed Corporations Companies 692 trillion yen 21 In the corporate market, we also provide services that best match the corporate customer se
Slide 22: Corporate Market: Regional Financial Institutions
Domestic Retail Core Value Formation (Corporate Market)1 Regional Financial Medium Sized Institutions Enterprises Create Business by Providing Appropriate Solutions Corporates Listed 692 trillion yen Local Government Entities & Other Corporations Companies 22 First, regional financial institutions.
Slide 23: Client Assets (Local Governments & Other Corporations)
Domestic Retail Client Assets (Local Governments & Other Corporations) (Trillions (Trillions of of yen) yen) Lifting of government 3 trillion yen guarantees on term deposits 3 2 1.5 1.5 1 0 FY99.3 FY00.3 FY01.3 FY02.3 FY03.3 1H 2H 1H 2H 1H 2H 1H 2H 1H 23 Please look at this slide. The graph in this
Slide 24: Core Value Formation (Corporate Market)
Domestic Retail Core Value Formation (Corporate Market) Regional Financial Medium Institutions Sized Create Business by Providing Enterprises Appropriate Solutions Corporates Local Government Entities Listed 692 trillion yen & Other Corporations Companies Consultation on Management of Public Money F
Slide 25: IB W-ing
Domestic Retail IB W-ing Sharing information such as contact history and thoughts on capital strategy Branch Director Manager In-Charge Account Executive IB W-ing Business Development & IPO Dept. 25 First, we set up an Intranet information system called IB W-ing. This system enables account executiv
Slide 26: Corporate Market: Medium Sized Enterprises
Domestic Retail Core Value Formation (Corporate Market) Medium Sized Enterprises Regional Financial Institutions Enhance Advisory Capability for Medium Sized Enterprises and Create Business by Providing their Owners Appropriate Solutions Corporates Listed Companies Local Government Entities 692 tril
Slide 27: Product Strategy
Domestic Retail Product Strategy 27 27
Slide 28: Product Strategy
Domestic Retail Product Strategy 1. Equities 2. Foreign Currency Products 3. Bonds & Bond-type Investment Trusts 4. Variable Annuity Insurance 28 Today, I will comment on the four products shown in the slide. First, equity products. 28
Slide 29: Number of Accounts Holding Stock
Domestic Retail Number of Accounts Holding Stock (Millions of accounts) 1.27 million 1.2 1.1 1.0 0.89 0.9 ~~ ~~ 0 FY00.3 FY01.3 FY02.3 FY03.3 29 This graph shows the number of accounts with stock holdings. Despite the current difficult market environment, the number of accounts is steadily increasin
Slide 30: Client Assets in ETFs
Domestic Retail Client Assets in ETFs (including financial institutions) Nikkei 225 ETF (Billions of yen) 49.1 billion yen 11,763 Nikkei Stock TOPIX ETF 40 Average 32.9 billion yen 30 Total: 82.0 billion yen 9,383 20 10 0 01.12 02.1 2 3 4 5 6 7 8 9 30 This graph illustrates client assets in ETFs. Cl
Slide 31: Product Strategy
Domestic Retail Product Strategy 1. Equities 2. Foreign Currency Products 3. Bonds & Bond-type Investment Trusts 4. Variable Annuity Insurance 31 Next is foreign currency products. 31
Slide 32: Client Assets in Foreign Currency Products
Domestic Retail Client Assets in Foreign Currency Products (excluding financial institutions) (Trillions of yen) +1.2 3.8 Foreign Stocks 0.1 trillion yen Foreign Investment 3 Trusts 1.0 trillion 2.6 yen Foreign Currency Bonds 2.8 trillion yen 2 1 0 FY00.3 FY01.3 FY02.3 FY03.3 32 This graph illustrat
Slide 33: Currency Diversification Ratio
Domestic Retail Currency Diversification Ratio Foreign Assets as a Percentage of Investment Trusts’ Net Asset Value Japan UK Foreign 7.1% Domestic Foreign 51.6% 48.4% Domestic 92.9% 33 This graph shows you foreign assets as a percentage of investment trusts’ net asset value. The figure is about 50%
Slide 34: Engine for Global Expansion
Domestic Retail Engine for Global Expansion Abundant Japanese Financial Assets ! Growing interest of individual investors in foreign currency products ! Increasing appeal of Japan as a market in which foreign issuers can raise funds Japanese Investors: Provider of Global Risk Capital 34 As a result
Slide 35: Product Strategy
Domestic Retail Product Strategy 1. Equities 2. Foreign Currency Bonds 3. Bonds & Bond-type Investment Trusts 4. Variable Annuity Insurance 35 Third, bonds and bond-type investment trusts. 35
Slide 36: Client Assets in Bonds & Bond-type Investment Trusts
Domestic Retail Client Assets in Bonds & Bond-type Investment Trusts (excluding financial institutions) (Trillions of yen) 5.3 5 Long-Term Bond 4.2 Investment Trust 4 Domestic Bonds 3 Foreign Bonds 2 Bond-type Investment Trusts 1 +900 billion yen 0 02.3 4 5 6 7 8 9 36 This graph illustrates client a
Slide 37: Product Strategy
Domestic Retail Product Strategy 1. Equities 2. Foreign Currency Bonds 3. Bonds & Bond-type Investment Trusts 4. Variable Annuity Insurance 37 Fourth, variable annuity insurance. 37
Slide 38: Outstanding Variable Annuity Insurance Contracts
Domestic Retail Outstanding Variable Annuity Insurance Contracts (Billions of yen) 120 105.3 billion yen 100 80 60 40 20 0 01.10 11 12 02.1 2 3 4 5 6 7 8 9 38 As for variable annuity insurance, we started to promote it strongly since the beginning of the current fiscal year. This graph illustrates o
Slide 39: Variable Annuity Insurance
Domestic Retail Variable Annuity Insurance Asset Management Annuity Insurance Providing Core Value in the Form of Comprehensive Investment Advisory Services Establishment of Insurance Product Department Insurance Product Development of Planning Sales Know-how Development of Marketing Methodology Mon
Slide 40: Compliance: Know-Your-Customer Rule
Domestic Retail Compliance Suitability Rule Know-Your-Customer Rule Integrity Increase Investors’ Trust in Nomura Enhance the Nomura Brand 40 In order to build up a long-lasting relationship with customers, awareness of compliance among employees is vital. Adhering to the “Suitability Rule”, in othe
Slide 41: B&D Project
Domestic Retail B&D Project (Publicity) (1) Exercise Leadership Enhance (2) Expand Market Participants Social Acceptance Creating a Sense of Corporate Unity ! Consistency in (3) Enhance Satisfaction of Concept & Deed ! Collective Tradition & Pride Corporate & Individual ! Communication Customers (Bu
Slide 42: B&D Project: Lectures on Securities Markets
Domestic Retail B&D Project Lectures on Securities Markets Given at More than 110 Universities Lectures Continually Upgraded 42 We have been providing lectures on securities markets in some 110 universities throughout Japan to broaden the public’s knowledge of securities markets. This activity repre
Slide 43: Nomura Holdings, Inc.
Domestic Retail Nomura Holdings, Inc. www.nomura www.nomura.com nomura.com 43 43