Nomura Holdings, Inc. · TSE:8604

Nomura — Q3 FY2004 Earnings Presentation

34 slides from Nomura's earnings presentation, January 2004

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

    Consolidated Results of Operations (US GAAP) Third quarter, fiscal year ending March 2004 Nomura Holdings, Inc. January 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 Third quarter, fiscal year ending March 31, 2004 (2003.4 – 2003.12) ¾Net revenue 565.0 (up 36%*) ¾Non-interest expenses 375.8 (up 6%*) ¾Income before income taxes 189.2 (up 217%*) Results for the ¾Income before cumulative effect of accounting change 102.4 (up 183%*) Ni

  4. Slide 4: Review of Businesses

    Review of Businesses „ Segment Information (P5) „ Domestic Retail (P6-8) „ Global Wholesale (P9-12) „ Asset Management (P13-14) „ Non-interest Expenses (P15-16) 4

  5. Slide 5: Segment Information

    Segment Information Income before Income Taxes by Segment Domestic Retail Global Wholesale Asset Management FY03.3 (3/4) (Billions of yen) 100 3Q 97.4 2.1 2Q 90 1Q 80 Up 45% Total 70 (Nine-month total) 68.3 67.2 57.6 59.5 Total Income before Income Taxes 60 for 3 Business Segments 21.7 50 20.1 Up 73

  6. Slide 6: Domestic Retail (1)

    Domestic Retail (1)* Points Net Revenue „ Commissions: 41.8 billion yen, up 56% 9 Stock Brokerage Commissions**: 25.6 billion yen, up 89% (Billions of yen) Up7% ¾ Individual Equity Agency Transaction Value*** 80 75.4 Monthly average = 9.8 trillion yen, up 89% 70.3 ¾ Equity Holding Accounts 70 End of

  7. Slide 7: Domestic Retail (2)

    Domestic Retail (2) Stock Brokerage Commissions / Foreign Currency Bond Distribution to Retail Investors / Revenue Breakdown (approx. figs.) (Billions of yen) Stock Brokerage Commissions Revenue Breakdown 30 26.2 25.6 25 100% 0% 1% 3% 3% 2% 20.5 7% 8% 8% 20 16.8 90% 14% 24% 14.4 14% 15 12.9 13.9 13.

  8. Slide 8: Domestic Retail (3)

    Domestic Retail (3) Client Assets / Net Asset Accumulation (excluding financials) Client Assets (Domestic Retail Division, excluding financials) Net Asset Accumulation Foreign bonds Domestic bonds* (monthly average) Equities Stock investment trusts Bond investment trusts Overseas mutual funds (Trill

  9. Slide 9: Global Wholesale (1) Fixed Income

    Global Wholesale (1) Fixed Income Points Net Revenue „ Foreign Currency Bond Public Offering to Retail (Billions of yen) Investors 45 41.6 40 38.5 9 Swedish Export Credit (SEK): 68.3 billion yen (A$) 9 Instituto de Crédito Oficial (ICO): 26.4 billion yen (US$) 9 Dexia Crédit Local: 18 billion yen (C

  10. Slide 10: Global Wholesale (2) Equity

    Global Wholesale (2) Equity Points „ Market Environment Net Revenue (Billions of yen) 9 Equity Agency Transaction Value* (monthly average) 45.4 trillion yen, up 65% YoY 25 9 Off-floor/Off-exchange Equity Trading Value 11.1 trillion yen (down 2% YoY) 20.5 (down 20% QoQ) 20 17.9 Down 14% „ Net Gain on

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

    Global Wholesale (3) Investment Banking Points „IPO, PO* Net Revenue 9 IPO Market: 241.6 billion yen, up 260% YoY (Billions of yen) 25 Nomura:132.5 billion yen, up 1,577% YoY 9 PO Market: 951.6 billion yen, up 313% YoY 20 Up 22% Nomura: 294.3 billion yen, up 119% YoY 18.0 17.3 „ Asset Finance 14.8 1

  12. Slide 12: Global Wholesale (4) Merchant Banking

    Global Wholesale (4) Merchant Banking Points Net Revenue „New Deals (Billions of yen) 9 Toshiba Tungaloy MBO 10 9 Announced acquisition of Sliontec 9 Huis Ten Bosch – official sponsor 5 „Exposure to Merchant Banking Business Terra Firma NPF (Billions of yen) 400 0 350 331.4 291.0 291.4 -1.7 300 281.

  13. Slide 13: Asset Management (1)

    Asset Management (1) Points „New Funds 9 Nomura Real Growth Fund Open Initial sales: 32.2 billion yen Net Revenue 9 World Genome Technology Open Initial sales: 58.1billion yen 9 Nomura US High Yield Bond Income** (Billions of yen) 12 Initial sales: 43.9 billion yen UP 17% 10.6 „ Assets Under Managem

  14. Slide 14: Asset Management (2)

    Asset Management (2) Assets Under Management (NAM) Market Share(NAM) (Trillions of yen) 25 Other Investment advisory Bond investment trusts Bond investment trusts Total public investment trusts Stock investment trusts Stock investment trusts 45% 20 41% 41% 18.2 40% 40% 40% 40% 39% 39% 0.2 40% 17.1 0

  15. Slide 15: Non-Interest Expenses (1)

    Non-Interest Expenses (1)* (Billions of yen) Points 150 „ Compensation and Benefits Up 6% 129.7 61.8 billion yen, up 4% 120.3 120 113.2 „ Information Processing and Communications 19.2 billion yen, up 2% 90 „ Business and Development Expenses 60 5.5 billion yen, up 14% 30 „ Other Expenses 17.4 billi

  16. Slide 16: Non-Interest Expenses (2)

    Non-Interest Expenses (2) „Compensation and Benefits 9 Fixed-type expenses: 36.1 billion yen, up 3.3% 9 Variable-type expenses: 25.7 billion yen, up 4.9% (Billions of yen) Compensation and Benefits* 50 40.4 36.7 Fixed-type 40 36.6 34.2 35.3 36.6 36.1 expenses 35.0 34.3 36.1 36.0 30 32.5 Variable-typ

  17. Slide 17: Appendix

    Appendix • Revenue and Income by Business Segment (P18) • Global Wholesale (P19) • Domestic Retail Related Data (P20) • Major Differences (Segment / Income Statement) (P21) • Revenue (P22-25) • Non-interest Expenses (P26) • Client Assets (P27) • Number of Accounts (P28) • Secondary Market Share Data

  18. Slide 18: Revenue and Income by Business Segment (Quarterly Base)

    Revenue and Income by Business Segment (Quarterly Base) Units: millions of yen Domestic Retail FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Non-interest revenue 60,953 50,806 57,224 57,172 66,436 56,136 69,366 54,999 74,573 75,214 74,893 Net-interest revenue 1,076 467 870 537 599 605 915 19

  19. Slide 19: Global Wholesale

    Global Wholesale (Revenue and Income by Business Line, Quarterly Base) Units: millions of yen Fixed Income FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net revenue 20,727 23,175 19,549 27,302 43,887 32,476 41,550 36,052 62,261 48,118 26,319 Non-interest expenses 15,450 16,768 15,648 18,873

  20. Slide 20: Domestic Retail Related Data

    Domestic Retail Related Data FY02.3 FY03.3 FY04.3 Domestic Retail ( billions of yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Net Interest revenue 1.1 0.5 0.9 0.6 0.6 0.8 0.7 0.2 1.2 1.2 1.4 Sales credit 13.1 12.3 18.8 17.3 20.5 17.8 32.2 25.2 40.4 21.7 18.0 Investment trust administration fees and other 14

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

    Major Differences (Segment / Income Statement) (FY04.3 nine months) Total Income before Income Taxes for 3 Business Segments: 157.1 billion yen Loss/gain on undesignated hedging -13.2 billion yen instruments included in net gain on trading Loss/gain on investment securities -0.4 billion yen Equity i

  22. Slide 22: Revenue (1) (Commissions)

    Revenue (1) (Commissions) (Billions of yen) 60 57.6 56.0 50 46.1 40 39.6 34.6 34.8 34.7 34.3 33.8 31.0 30 26.6 20 10 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 39.6 31.0 34.6 34.8 46.1 34.7 34.3 26.6 33.8 56.0 57.6 Other 2.4

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

    Revenue (2) (Fees from Investment Banking) (Billions of yen) 35 31.0 30 24.4 25 22.9 19.6 19.9 20 18.6 18.3 16.9 15.6 14.5 15 14.1 10 5 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 14.1 22.9 19.6 18.6 15.6 18.3 16.9 31.0 14.5 1

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

    Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) 35 30 29.6 27.8 26.9 25.7 25 24.2 21.9 20 17.5 17.0 16.8 15.7 15 13.7 10 5 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 29.6 27.8 25.7 26.9 24.2 21.9 1

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

    Revenue (4) (Net Gain on Trading / Net Interest Revenue*) (Billions of yen) 175 169.3 150 125 113.9 99.5 100 88.7 80.3 81.5 66.6 75 69.1 56.8 50 23.7 42.8 25 0 -25 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 88.7 23.7 69.1 169.3

  26. Slide 26: Non-interest Expenses

    (Non-interest Expenses*) (Billions of yen) 250 239.4 200 185.1 162.9 150 124.3 128.8 126.7 121.8 117.7 118.5 120.3 113.2 100 50 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Total 121.8 239.4 117.7 185.1 124.3 118.5 113.2 162.9 128.8

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

    Client Assets (Trillions of yen) Nomura Securities Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Equities 28.9 24.9 24.8 25.1 24.9 23.6 22.3 21.6 24.8 28.7 30.3 Bonds 12.3 12.8 13.3 13.7 14.9 15.4 15.4 16.8 17.9 18.4 17.5 Stock investment trusts 3.2 2.6 2.7

  28. Slide 28: Number of Accounts

    Number of Accounts Nomura Home Trade (online trading accounts) (Thousands of accounts) Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 Dec.03 686 778 860 936 1,005 1,079 1,114 1,141 1,168 1,215 1,290 IT share FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q No. of order 38

  29. Slide 29: Secondary Market Share Data

    Secondary Market Share Data Market units: trillions of yen Individual Equity Agency Transactions Share (monthly average) FY02.3 FY03.3 FY04. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Market 4.9 3.3 3.9 4.0 5.2 3.9 5.2 3.1 5.0 9.1 9.8 Nomura's share 16% 16% 16% 13% 20% 16% 17% 8% 8% 10% 9% Off-floor/Off-excha

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

    Primary Market Share Data (Value Base) Straight Bonds * FY02.3 FY03.3 FY04.3 01.4-6 01.4-9 01.4-12 01.4-02.3 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 Nomura's share 19% 19% 19% 21% 20% 22% 22% 23% 22% 23% 19% Euro Yen Bonds ** FY02.3 FY03.3 FY04.3 01.4-6 01.4-9 01.4-12 01.4-02.

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

    Assets Under Management (NAM / NCRAM) NAM (Trillions of yen) Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03 Stock investment trusts 2.7 2.4 2.9 3.2 3.6 3.3 3.3 3.2 3.5 4.3 4.3 Bond investment trusts 14.5 12.9 10.9 10.4 9.2 8.3 7.8 7.3 7.0 7.0 6.6 Non-public i

  32. Slide 32: Value at Risk (Consolidated)

    Value at Risk (Consolidated) „ Definition From Apr. 1 to Dec. 31 2003 ¾ 99% confidence level Maximum: 5.6 billion yen ¾ 1-day time horizon for out trading portfolio Minimum: 1.7 billion yen Average: 3.69 billion yen ¾ Inter-product price fluctuations considered (Billions of yen) The end of quarter S

  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 Asia/Oceania 486 476 468 462 616 622 646 652 Americas 835 893 827 753 797 821 843 852 Europe 1,370 1,449 1,381 1,352 1,389 1,439 1,372 1,439 Japan (FA, SA) 2,195 2,192 2,177 2,072 1,986 1,960 1,901 1,909 Japan (exclu

  34. Slide 34: Nomura Holdings, Inc.

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

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