Nomura Holdings, Inc. · TSE:8604

Nomura — Q1 FY2005 Earnings Presentation

34 slides from Nomura's earnings presentation, July 2004

  1. Slide 1: Consolidated Results of Operations (US GAAP)

    Consolidated Results of Operations (US GAAP) First quarter, fiscal year ending March 2005 Nomura Holdings, Inc. July 2004 1

  2. Slide 2: Outline of the Presentation

    Outline of the Presentation „ Financial Summary „ Review of Businesses ¾ Segment Information ¾ Domestic Retail ¾ Global Wholesale ¾ Asset Management ¾ Non-interest Expenses „ Appendix 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2004 Nomura Holdings, Inc. All rights re

  3. Slide 3: Consolidated Financial Summary

    Consolidated Financial Summary First quarter ended June 30, 2004 ¾Net revenue 213.9 (up 6.9%*) ¾Non-interest expenses 141.5 (up 9.8%*) Results for the ¾Income before income taxes 72.5 (up 1.6%*) First Quarter ¾Net income 40.8 (up 4.6%*) (Billions of yen) ¾Total assets 30,013.9 (up 261.0**) ¾Total sh

  4. Slide 4: Review of Businesses

    Review of Businesses „ Segment Information (P5) „ Domestic Retail (P6-8) „ Global Wholesale (P9-11) „ Asset Management (P12-13) „ Non-interest Expenses (P14-15) 4

  5. Slide 5: Segment Information

    Segment Information Income before Income Taxes by Segment Domestic Retail Global Wholesale Asset Management (Billions of yen) 40 37.8 Down 14% 34.6 33.7 32.7 30 Total Income before Income Up 62% Taxes for 3 business Segments FY04.3 1Q 58.7 20.8 20 19.9 2Q 73.7 3Q 24.7 4Q 59.9 FY05.3 1Q 67.1 10 Up 78

  6. Slide 6: Domestic Retail (1)

    Domestic Retail (1)* Net Revenue 1Q Points (Billions of yen) „ Commissions (55.8 billion yen, up 117%) 90 Up 16% 87.0 9 Stock Brokerage Commissions 36.5 billion yen, up 201% 76.4 ¾ Individual Equity Agency Transaction Value** 80 75.0 Monthly average = 13.9 trillion yen, up 179% 70 ¾ Equity Holding A

  7. Slide 7: Domestic Retail (2)

    Domestic Retail (2) Stock Brokerage Commissions / Foreign Currency Bond Distribution to Investors / Revenue Breakdown (approx. figs.) (Billions of yen) Stock Brokerage Commissions 40 36.5 Revenue Breakdown 35 100% 3% 1% 3% 2% 1% 3% 7% 8% 8% 30 28.2 8% 8% 26.2 25.6 90% 14% 25 14% 14% 17% 20% 80% 18%

  8. Slide 8: Domestic Retail (3)

    Domestic Retail (3) Retail Client Assets / Net Asset Accumulation Retail Client Assets* Net Asset Accumulation (monthly average) Foreign bonds Domestic bonds** Equities Stock investment trusts (Trillions Bond investment trusts Overseas mutual f unds of yen) Other*** (Billions 40 36.2 of yen) 35.2 0.

  9. Slide 9: Global Wholesale (1) Global Markets

    Global Wholesale (1) Global Markets 1Q Points „ Organizational Change Net Revenue* 9 Fixed Income, Equity and syndicate functions were consolidated to create Global Markets (Billions of yen) „Foreign Currency Bond Public Offering to Retail Investors 90 Down 13% 9 Toyota Motor Credit: US$ 390 million

  10. Slide 10: Global Wholesale (2) Investment Banking

    Global Wholesale (2) Investment Banking 1Q Points Net Revenue „Organizational Changes (Billions of yen) 9 Established a structure specializing in origination 20 17.7 „ Equity & Equity Related Underwriting* (IPO, PO, CB) 9 Value Total: US$12.73 billion (up 289%) Nomura: US$2.53 billion (up 344%) 15 U

  11. Slide 11: Global Wholesale (3) Merchant Banking

    Global Wholesale (3) Merchant Banking 1Q Points „ New Deals Net Revenue (Billions of yen) 9 Acquisition of Millennium Retailing shares (July) 5 9 NPF to purchase shares in Reorganizing Company Huis Ten Bosch (July) 4 „ Exit Transactions 2.8 2.7 3 9 Wizard Inns 2 „ Exposure to Merchant Banking Busine

  12. Slide 12: Asset Management (1)

    Asset Management (1) 1Q Points Net Revenue „ Expansion of Fund of Funds 9 Nomura Fund Masters Japan Small Capitalization Stock (Billions of yen) Jun. 30, 2004 85.7 billion yen (Mar. 31, 2004 36.5 billion yen) 9 Nomura Multi-Strategy Fund 12 Sales: 24.1 billion yen „ Increased Assets of Funds for Ban

  13. Slide 13: Asset Management (2) Assets Under Management / Market Share

    Asset Management (2) Assets Under Management / Market Share (Public Investment Trusts, NAM’s Share) Assets Under Management Public Investment Trusts & NAM’s Market Share (Nomura Asset Management) (Trillions of yen) (Trillions of yen) (%) 25 60 Bond investme nt trusts (LHS) 100 Other Investment advis

  14. Slide 14: Non-Interest Expenses (1)

    Non-Interest Expenses (1)* (Billions of yen) 150 Up 10% 141.5 1Q Points 128.8 130.1 120 „Compensation and Benefits 65.9 billion yen, up 0% 90 „Information Processing and Communications 19.3 billion yen, up 2% 60 „Business and Development Expenses 5.4 billion yen, up 9% 30 „Other Expenses 0 FY 04.3 1

  15. Slide 15: Non-Interest Expenses (2)

    Non-Interest Expenses* (2) „ Compensation and Benefits 9 Fixed-type expenses: 36.4 billion yen, up 0.1% 9 Variable-type expenses: 28.0 billion yen, down 4.4% (Billions of yen) Compensation and Benefits** 50 40 36.6 36.4 34.2 35.3 35.9 35.9 36.4 34.3 36.0 30 32.5 29.3 28.0 28.8 28.0 25.6 25.7 Fixed-t

  16. Slide 16: Appendix

    Appendix • Revenue and Income by Business Segment (P17) • Global Wholesale (Revenue and Income by Business Line) (P18 - P19) • Domestic Retail Related Data (P20) • Major Differences (Segment / Income Statement) (P21) • Revenue (P22 - 25) • Non-interest Expenses (P26) • Client Assets (P27) • Number o

  17. Slide 17: Revenue and Income by Business Segment (Quarterly Base)

    Revenue and Income by Business Segment (Quarterly Base) Domestic Retail Unit: millions of yen FY03.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Non-interest revenue 66,436 56,136 69,366 54,999 74,573 75,214 74,893 79,355 86,210 Net-interest revenue 599 605 915 194 397 378 460 487 759 Net revenue 67,03

  18. Slide 18: Global Wholesale (Revenue and Income by Business Line) (1)

    Global Wholesale (Revenue and Income by Business Line, Quarterly Base) (1) Global Markets* Unit: millions of yen FY05.3 1Q Net revenue 71,799 Fixed Income related 38,535 Equity related 29,658 Non-interest expenses 41,175 Income before income taxes 30,624 Fixed Income Unit: millions of yen FY03.3 FY0

  19. Slide 19: Global Wholesale (Revenue and Income by Business Line) (2)

    Global Wholesale (Revenue and Income by Business Line, Quarterly Base) (2) Investment Banking* Unit: millions of yen FY03.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Net revenue 16,830 16,453 14,801 21,041 12,908 20,568 18,013 19,380 12,945 Non-interest expenses 13,850 13,636 13,081 15,807 12,086 13,

  20. Slide 20: Domestic Retail Related Data

    Domestic Retail Related Data Units: Billions of yen FY03.3 FY04.3 FY05.3 Domestic Retail 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Net interest revenue 0.6 0.8 0.7 0.2 1.2 1.2 1.4 1.1 1.6 Sales credit 20.5 17.8 32.2 25.2 40.4 21.7 18.0 17.7 18.6 Investment trust administration fees and other 12.3 7.7 6.9 5.2 4.8 5

  21. Slide 21: Major Differences (Segment / Income Statement)

    Major Differences (Segment / Income Statement) (FY05.3 3 months) Total Income before Income Taxes for 3 Business Segments: 67.1 billion yen Loss/gain on undesignated hedging -13.0 billion yen instruments included in Net Gain on Trading Loss/gain on investment securities 0.4 billion yen Equity in los

  22. Slide 22: Revenue (1) Commissions

    Revenue (1) (Commissions) (Billions of yen) 70 69.5 62.9 60 57.6 56.0 50 46.1 40 34.7 34.3 33.8 30 26.6 20 10 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 46.1 34.7 34.3 26.6 33.8 56.0 57.6 62.9 69.5 Othe r 5.7 9.8 5.3 5.2 4.5 5.6 6.5 6.6 5.1 Com

  23. Slide 23: Revenue (2) Fees from Investment Banking

    Revenue (2) (Fees from Investment Banking) (Billions of yen) 35 31.0 30 28.2 25 24.4 19.9 20 18.3 16.9 15.6 15.4 14.5 15 10 5 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 15.6 18.3 16.9 31.0 14.5 19.9 24.4 28.2 15.4 Other 0.3 1.0 0.6 1.4 0.2 -0.1

  24. Slide 24: Revenue (3) Asset Management and Portfolio Service Fees

    Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) 30 25 24.2 21.9 20 18.6 18.2 17.5 17.0 16.8 15.7 15 13.7 10 5 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 24.2 21.9 17.5 15.7 13.7 17.0 16.8 18.6 18.2 Custodial fees 2.4

  25. Slide 25: Revenue (4) Net Gain on Trading / Net Interest Revenue

    Revenue (4) (Net Gain on Trading / Net Interest Revenue) (Billions of yen) 120 113.9 99.5 100 80.3 86.4 81.5 66.6 80 74.6 56.8 60 42.8 40 20 0 -20 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 56.8 66.6 81.5 80.3 113.9 99.5 42.8 86.4 74.6 Net interes

  26. Slide 26: Non-interest Expenses

    Non-interest Expenses (Billions of yen) 200 162.9 150 144.6 141.5 124.3 128.8 126.7 118.5 113.2 120.3 100 50 0 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 124.3 118.5 113.2 162.9 128.8 126.7 120.3 144.6 141.5 Other 17.6 13.7 12.4 51.3 20.8 16.0 17.

  27. Slide 27: Client Assets (Trillions of yen)

    Client Assets (Trillions of yen) Nomura Securities Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Jun. 04 Equities 24.9 23.6 22.3 21.6 24.8 28.7 30.3 35.9 37.2 Bonds 14.9 15.4 15.4 16.8 17.9 18.4 17.5 17.3 17.3 Stock investment trusts 2.7 2.5 2.4 2.4 2.6 2.8 3.1 3.3 3.5 Bond investm

  28. Slide 28: Number of Accounts

    Number of Accounts Nomura Home Trade (online trading accounts) (Thousands accounts) Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 Dec.03 Mar.04 Jun.04 1,005 1,079 1,114 1,141 1,168 1,215 1,290 1,367 1,452 IT Share FY03.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q No. of order 39% 38% 33% 42% 45% 46% 46% 4

  29. Slide 29: Secondary Market Share Data

    Secondary Market Share Data Individual Equity Agency Transactions Share (monthly average) (Market unit: Trillions of yen) FY03.3 FY04.3 FY05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Market 5.2 3.9 5.2 3.1 5.0 9.1 9.8 11.4 13.9 Nomura's share 20% 16% 17% 8% 8% 10% 9% 10% 10% Off-floor/Off-exchange Equity Trading

  30. Slide 30: Primary Market Share Data (Value Base)

    Primary Market Share Data (Value Base) Straight Bonds * FY03.3 FY04.3 FY05.3 02.4-6 02.4-9 02.4-12 02.4-03.3 03.4-03.6 03.4-03.9 03.4-03.12 03.4-04.3 04.4-04.6 Nomura's share 20% 22% 22% 23% 22% 23% 19% 19% 20% Euro Yen Bonds ** FY03.3 FY04.3 FY05.3 02.4-6 02.4-9 02.4-12 02.4-03.3 03.4-03.6 03.4-03.

  31. Slide 31: Assets Under Management (NAM / NCRAM)

    Assets Under Management (NAM / NCRAM) NAM (Trillions of yen) Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Jun. 04 Stock investment trusts 3.6 3.3 3.3 3.2 3.5 4.3 4.3 4.5 4.6 Bond investment trusts 9.2 8.3 7.8 7.3 7.0 7.0 6.6 6.3 6.0 Non-public investment trusts 0.2 0.2 0.2 0.2 0.3

  32. Slide 32: Value at Risk (Consolidated)

    Value at Risk (Consolidated) „ Definition From Apr. 1, 2003 to Jun. 30, 2004 ¾ 99% confidence level Maximum: 5.6 billion yen ¾ 1-day time horizon for out trading portfolio Minimum: 2.8 billion yen Average: 3.88 billion yen ¾ Inter-product price fluctuations considered (Billions of yen) The end of qu

  33. Slide 33: Number of Employees

    Number of Employees Mar. 01 Sep. 01 Mar. 02 Sep. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Mar. 04 Jun. 04 Asia/Oceania 486 476 468 462 616 622 646 652 655 668 Americas 835 893 827 753 797 821 843 852 866 914 Europe 1,370 1,449 1,381 1,352 1,389 1,439 1,372 1,439 1,403 1,407 Japan (FA, SA) 2,195 2,192 2,17

  34. Slide 34: Nomura Holdings, Inc.

    Nomura Holdings, Inc. www.nomura.com 34 34

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