Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (October 2012)
22 slides from Nomura's debt investor presentation, October 2012
Slide 1: Creditor Presentation
Creditor Presentation Second Quarter, Fiscal Year Ending March 2013 Nomura Holdings, Inc. October 2012 © Nomura
Slide 2: Disclaimer
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 sel
Slide 3: Table of Contents
Table of Contents Executive Summary Overview of Results Retail, Asset Management, Wholesale Non-Interest Expenses Progress of Cost Reduction Program Balance Sheet Management Exposure to European Peripheral Countries, Level 3 Assets Liquidity Portfolio Funding Profile Robust Finan
Slide 4: Executive Summary
Executive Summary Revenue and income both up QoQ; Profitable for fourth straight quarter – Net revenue: Y401.7bn ($5.16bn) (+9% QoQ; +33% YoY) Financial – Income before income taxes: Y35.4bn ($455mn) (+80% QoQ) Highlights – Net income1: Y2.8bn ($36mn) (+49% QoQ) Business segment income before in
Slide 5: Overview of Results
Overview of Results Quarter Key Points FYE2012 FYE2013 (JPY bn) QoQ YoY Retail (USD bn) 2Q 3Q 4Q 1Q 2Q – Net revenue Y80.8bn (-2% QoQ) 401.7 – Income before income taxes Y11.0bn (-10% QoQ) Net revenue 301.6 404.9 499.0 369.3 +9% +33% $5.16 Contributed to firm-wide earnings; Robust sales of inves
Slide 6: Retail
Retail Net Revenue and Income Before Income Taxes Key Points FYE2012 FYE2013 QoQ YoY Lower revenues and income: Retail investor risk appetite remained subdued (JPY bn) (USD bn) 2Q 3Q 4Q 1Q 2Q as market conditions showed no improvement from last quarter‟s sharp 80.8 decline Net revenue 84.0 79.7 92
Slide 7: Asset Management
Asset Management Net Revenue and Income Before Income Taxes Key Points Revenue and income down QoQ due to absence of dividend revenues booked last quarter (JPY bn) FYE2012 FYE2013 Maintained disciplined cost control to deliver stable earnings (USD bn) QoQ YoY Investment trust business for indivi
Slide 8: Wholesale
Wholesale Net Revenue and Income (Loss) Before Income Taxes1 Key Points FYE2012 FYE2013 Revenues increased QoQ in Americas, EMEA, and Japan (JPY bn) QoQ YoY Fixed Income was main driver of revenues, underpinning return to profit for Wholesale (USD bn) 2Q 3Q 4Q 1Q 2Q Started taking steps to imp
Slide 9: Non-Interest Expenses
Non-Interest Expenses Full Year Quarter Key Points (billions of yen) (billions of yen) 1,500 1,450.9 Non-interest expenses: Y366.3bn Other (+5% QoQ) 500 Business development 1,200 expenses 438.2 1,037.4 Occupancy and related 366.3 400 depreciation 370.5 Major contributing factors 346.2 349.6 900
Slide 10: Progress of Cost Reduction Program: Fit for the Future
Progress of Cost Reduction Program: Fit for the Future Timeline of $1bn Cost Reduction Program Progress Commenced additional $1bn cost reduction Announced in Sep 2012: $1bn FY2012/13 Fy2012/13 program in Sep 2012 FY2013/14 2Q 2H – Significant reduction in cost base: Lower break- even point Japan 1
Slide 11: Balance Sheet Management
Balance Sheet Management Balance Sheet Composition Balance Sheet Funding Profile (September 2012) Highly Liquid, Healthy Balance Sheet Conservative Funding Profile – 77% of assets are highly liquid Assets Liabilities / Equity – Approx. 80% of unsecured funding4 trading and related assets that ar
Slide 12: Exposure to European Peripheral Countries, Level 3 Assets
Exposure to European Peripheral Countries, Level 3 Assets GIIPS Country Exposure (preliminary, as of September 30, 2012) Level 3 Assets3 and Net Level 3 Assets / Tier 1 Capital (JPY tn) Change 20 80% Net Trading Assets Level 3 Assets (US$m) from Net inventory 1 Net counterparty exposure June Net Lev
Slide 13: Liquidity Portfolio
Liquidity Portfolio Firm-Wide Liquidity Management Liquidity Portfolio1: $68bn, 15% of Total Assets Liquidity Stress Test ~ Quantify Liquidity Risk Tolerance Breakdown (September 2012) – The firm carries out its liquidity stress test daily in order to maintain adequate liquidity to withstand hypot
Slide 14: Funding Profile
Funding Profile Unsecured Funding1: Nearly 80% Long-Term Debt; Diversified Funding Sources Long-Term Debt Profile2 (US$bn) By Region 30 Short-Term Non Debt 25 Japan 19% 18% Current Portion of Maintain an adequate liquidity Long-Term Debt Loans 20 portfolio for potential cash needs 8% Bank from debt
Slide 15: Robust Financial Position
Robust Financial Position Balance Sheet-Related Indicators and Capital Ratios Tier 1 Capital, Tier 1 Capital Ratio2 (Jun 2012) (Sep 2012) (JPY tn) Tier 1 Capital Tier 1 Ratio 4 20% Basel 2 basis Basel 2.5 basis Total assets Y35.3tn Y35.4tn 3 15% ($454bn) Shareholders‟ equity Y2.1tn Y2.1tn 2 10%
Slide 16: Appendix
NOMURA Appendix
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen March 31, September 30, March 31, September 30, Increase/(Decrease) Increase/(Decrease) 2012 2012 2012 2012 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 1,185,613 866,417 (319,196) Cash and cash equivalents 1,0
Slide 18: Consolidated Income
Consolidated Income Full Year Quarter (billions of yen) FYE2012 FYE2013 FYE2011 FYE2012 2Q 3Q 4Q 1Q 2Q Revenue Commissions 405.5 347.1 85.9 74.0 90.4 77.4 72.3 Fees from investment banking 107.0 59.6 13.8 17.2 14.8 10.4 17.1 Asset management and portfolio service fees 143.9 144.3 36.7 33.4 35.1 33.8
Slide 19: Segment "Other"
Segment “Other” Income (Loss) Before Income Taxes Full year Quarter (billions of yen) (billions of yen) 40 40 35.2 30 30 20 17.0 20 12.9 14.6 10 7.3 10 0 0 -10 -10 -20 -15.2 -14.5 -20 FYE2012 FYE2013 FYE2011 FYE2012 2Q 3Q 4Q 1Q 2Q Net gain (loss) related to economic 2.3 8.4 4.2 7.7 -2.1 -1.2 1.0 hed
Slide 20: Value at Risk
Value at Risk Definition From April 1, 2012 to September 28, 2012 (billions of yen) 99% confidence level Maximum: 7.2 1-day time horizon for outstanding portfolio Minimum: 4.3 Inter-product price fluctuations considered Average: 5.5 (billions of yen) Mar. 2011 Jun. 2011 Sep. 2011 Dec
Slide 21: Number of Employees
Number of Employees Mar. 2011 Jun. 2011 Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012 Japan (excluding FA)1 12,829 20,263 20,105 19,882 19,598 20,197 20,039 Japan (FA) 2,089 2,096 2,078 2,048 2,011 2,014 1,981 Europe 4,353 4,436 4,492 4,143 4,014 3,975 3,940 Americas 2,348 2,383 2,537 2,466 2,42
Slide 22: Credit Ratings
Credit Ratings Standard & Moody‟s 1 Rating and Japan Credit As of September 28, 2012 Poor‟s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa3 A+ AA- Short-term A-2 - a-1 - Outlook stable stable negative stable Nomura Securities Co., Ltd. Long-term A- Baa2 A+ AA- Short-te
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