Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2022/23 Earnings Presentation
33 slides from Nomura's earnings presentation, Aug 8, 2022
Slide 1: Consolidated Results of Operations First quarter, year ending March 2023
Consolidated Results of Operations First quarter, year ending March 2023 (US GAAP) Nomura Holdings, Inc. August 2022 Nomura
Slide 2: Outline
Outline Presentation Financial Supplementl Executive summary (p. 2)l Consolidated balance sheet (p. 16) l Overview of results (p. 3)l Value at risk (p. 17)l Business segment results (p. 4)l Consolidated financial highlights (p. 18)l Retail (p. 5-7)l Consolidated income (p. 19)l Investment Management
Slide 3: Executive summary
Executive summary Income (loss) before income taxes, FY2022/23 1Q highlights net income (loss)1 Firmwide (billions of yen) Income before income taxes: Y11.7bn (-76% QoQ); Net income1: Y1.7bn (-95% QoQ); Income (loss) before EPS2: Y0.52; ROE3: 0.2% income taxes 80.1 Net income (loss) 78.5 Three segme
Slide 4: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2021/22 FY22/23 1Q 2Q 3Q 4Q 1Q QoQ YoY Net revenue 353.3 318.9 351.0 340.8 299.0 -12% -15% Non-interest expenses 274.7 300.4 270.9 291.3 287.3 -1% 5% Income (loss) before income 78.5 18.5 80.1 49.5 11.7 -76% -85% taxes Net inc
Slide 5: Business segment results
Business segment results Net revenue and income (loss) before income taxes1 (billions of yen) FY2021/22 FY22/23 1Q 2Q 3Q 4Q 1Q QoQ YoY Net revenue Retail 85.0 85.2 87.4 70.5 71.4 1% -16% Investment Management 63.5 34.3 40.1 10.1 7.6 -25% -88% Wholesale 132.8 172.7 202.7 194.9 199.0 2% 50% Subtotal 2
Slide 6: Retail
Retail Net revenue, income before income taxes (billions of yen) F2021/22 FY22/23 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 85.0 85.2 87.4 70.5 71.4 1% -16% Non-interest expenses 66.0 68.2 69.3 65.3 66.5 2% 1% Income before income 19.0 17.0 18.0 5.2 4.9 -5% -74% taxes Breakdown of net revenue (billions of
Slide 7: Retail: Total sales
Total sales1 Retail: Slower sales of Japanese stocks, but fund inflows into global stock investment trusts 6,000.0 Discretionary investments, 5,000.0 Insurance products Investment trusts 4,000.0 3,000.0 Bonds 2,000.0 Stocks 1,000.0 0.0 (billions of yen) FY2021/22 FY22/23 1Q 2Q 3Q 4Q 1Q Stocks 2,551.
Slide 8: Retail: KPI summary
Retail: KPI summary Net inflows of recurring revenue assets1 Recurring revenue assets and recurring revenue2 (billions of yen) (trillions of yen) (billions of yen) 250.0 208.4 211.4 Recurring revenue assets Recurring revenue (rhs) 200.0 159.2 40.0 20.3 132.8 19.5 19.6 150.0 20.0 19.1 18.5 100.0 33.5
Slide 9: Investment Management
Investment Management Net revenue, income (loss) before income taxes Key points (billions of yen) Net revenue: Y7.6bn (-25% QoQ; -88% YoY) FY2021/22 FY22/23 QoQ YoY Loss before income taxes: Y11.7bn 1Q 2Q 3Q 4Q 1Q Business revenue roughly unchanged QoQ, but overall divisional Net revenue 63.5 34.3 4
Slide 10: Investment Management: Inflows into investment trust business via diverse channels
Investment Management: Inflows into investment trust business via diverse channels Assets under management (net)1 (trillions of yen) AuM declined due to market factors, etc. but remained at high level Investment advisory and international businesses, etc. Investment trust business Investment trust b
Slide 11: Wholesale
Wholesale Net revenue and income (loss) before income taxes2 (billions of yen) FY2021/22 FY22/23 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 132.8 172.7 202.7 194.9 199.0 2% 50% Non-interest expenses 161.1 147.7 161.9 157.9 173.7 10% 8% Income (loss) before -28.4 25.0 40.8 37.0 25.3 -32% -income taxes CIR 12
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets Net revenue (billions of yen) 200.0 163.8 150.0 137.2 100.0 97.2 50.0 0.0 -50.0 QoQ +11% YoY +80% 175.3 158.2 FI: OthersFI: Macro Products2 FI: Spread Products3 EQ: Others4 EQ: Equity Products5 EQ: Execution Services6 -100.0 FY2021/22 FY22/23 QoQ YoY 1Q 2Q 3Q 4Q 1Q Fixed In
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue (billions of yen) QoQ -35% 38.9 YoY -33% 35.5 35.4 36.7 23.7 Finance, Solutions, etc. Advisory FY2021/22 FY22/23 1Q 2Q 3Q 4Q 1Q Key points Net revenue: Y23.7bn (-35% QoQ; -33% YoY) Revenues declined QoQ mainly due to ECM and ALF as global transactions declin
Slide 14: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) Non-interest expenses: Y287.3bn (billions of yen) (-1% QoQ) 400 1,500 Other Compensation and benefits (+14% QoQ) 1,171.2 300.4 Significant impact by yen depreciation, 1,137.3 291.3 Business development 274.7 287.3 300 270.9 higher
Slide 15: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Mar 2022 Jun 2022 Total assets Y43.4trn Y48.9trn Shareholders_ equity Y2.9trn Y3.1trn Gross leverage 14.9x 16.0x Net leverage1 9.1x 9.7x Level 3 assets2 Y0.8trn Y0.9trn (net) Liquidity portfolio Y7.1trn Y7.1trn (billions o
Slide 16: Financial Supplement
Financial Supplement
Slide 17: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Jun 30, Increase Mar 31, Jun 30, Increase 2022 2022 (Decrease) 2022 2022 (Decrease) Assets Liabilities Total cash and cash deposits 4,064 4,193 130 Short-term borrowings 1,050 1,338 288 Total payables and deposits 4,920
Slide 18: Value at risk
Value at risk1 Definition From April 1, 2022, to June 30, 2022 (billions of yen) 95% confidence level Maximum: 5.4 1-day time horizon for outstanding portfolio Minimum: 2.7 Inter-product price fluctuations considered Average: 3.6 (billions of yen) FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar Jun
Slide 19: Consolidated financial highlights
Consolidated financial highlights Full year (billions of yen) 200 8% 153.1 Net income (loss) 5.7% 143.0 attributable to 150 6% 5.1% Nomura Holdings, Inc. (“NHI”) shareholders 100 4% ROE (%) 50 2% 0 0% FY2020/21 FY2021/22 Net revenue 1,401.9 1,363.9 Income (loss) before income taxes 230.7 226.6 Net i
Slide 20: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q Revenue Commissions 376.9 332.3 82.9 91.6 82.6 75.2 70.4 Fees from investment banking 108.7 149.6 35.7 33.9 46.0 34.0 27.3 Asset management and portfolio service fees 230.0 270.0 64.0 67.2
Slide 21: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions 262.3 236.4 58.2 67.7 57.3 53.1 48.4 Commissions Other brokerage commissions 14.3 18.0 3.7 4.0 4.8 5.5 4.8 Commissions for distribution of investment trusts 68.8
Slide 22: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q Retail 92.3 59.2 19.0 17.0 18.0 5.2 4.9 M
Slide 23: Segment Other
Segment _OtherIncome (loss) before income taxes Full year Quarter (billions of yen) 80 40 39.6 15.8 14.9 1.7 0 -3.9 -40 -28.5 -40.4 -80 FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic -11.5 -9.9 3.4 -3.8 -1.1 -8.4 -9.8 hedging transactions Realized gain (lo
Slide 24: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q QoQ YoY Commissions 187.7 138.5 38.6 35.6 36.5 27.8 26.0 -6.6% -32.6% Of which, stock brokerage commission 92.6 67.4 17.8 17.6 17.6 14.4 11.8 -18.2% -33.7% Of which, commissions for dis
Slide 25: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 127.0 128.7 122.1 Other 126.6 125.0 119.4 122.1 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2020/21 FY2021/22 FY2021/22 FY2022/23 Ma
Slide 26: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 Full year Quarter Corporates Individuals Corporates Individuals 1,500 1,500 1,200 1,200 900 900 600 600 300 300 0 0 -300 -300 -600 -600 -900 -900 -1,200 -1,200 FY2021/22 FY2022/23 (billions of yen) FY2020/21 FY2021/22 (billions of yen) 1Q 2
Slide 27: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,329 5,348 5,348 5,342 5,362 5,348 5,354 Equity holding accounts 2,927 2,955 2,924 2,923 2,949 2,955 2,958 NISA accounts opened (accumulated)1 1,791 1,589
Slide 28: Investment Management related data (1)
Investment Management related data (1) Full year Quarter FY2021/22 FY2022/23 (billions of yen) FY2020/21 FY2021/22 QoQ YoY 1Q 1Q 2Q 3Q 4Q Business revenue 111.9 119.9 28.0 29.3 31.5 31.1 30.7 -1.5% 9.4% Investment gain/loss 51.2 28.1 35.5 5.1 8.6 -21.1 -23.1 —Net revenue 163.2 148.0 63.5 34.3 40.1 1
Slide 29: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1_2 Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 1Q 2Q 3Q 4Q 1Q Investment trusts business 2,753 1,236 346 267 250 372 478 of which ETFs 2,241 683 344 -28 -15 383 323 Investment advisory and -883
Slide 30: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2020/21 FY2021/22 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 691.4 703.1 132.8 172.7 202.7 194.9 199.0 2.1% 49.9% Non-interest expenses 627.1 628.6 161.1 147.7 161.9 157.9 173.7 10.0% 7.8% Income (loss) before income taxes 64.3
Slide 31: Number of employees
Number of employees FY2020/21 FY2021/22 FY2021/22 FY2022/23 Mar Mar Jun Sep Dec Mar Jun Japan 15,330 15,213 15,556 15,393 15,299 15,213 15,503 Europe 2,769 2,820 2,779 2,811 2,817 2,820 2,811 Americas 2,152 2,257 2,116 2,171 2,181 2,257 2,252 Asia and Oceania1 6,151 6,295 6,196 6,216 6,259 6,295 6,4
Slide 32: 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 sell, s
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com