Nomura Holdings, Inc. · TSE:8604
Nomura — FY2022/23 Earnings Presentation
34 slides from Nomura's earnings presentation, May 1, 2023
Slide 1: Consolidated Results of Operations, Fourth quarter, year ended March 2023
ConnectingMarkets East & West © Nomura (US GAAP) April 2023 Consolidated Results of OperationsFourth quarter, year ended March 2023 Nomura Holdings, Inc.
Slide 2: Outline
Outline Presentation Financial Supplement Executivesummary(p.2-3) Overviewofresults(p.4) Businesssegmentresults(p.5) Retail(p.6-8) InvestmentManagement(p.9-10) Wholesale(p.11-13) Non-interestexpenses(p.14) Robustfinancialposition(p.15) Consolidatedbalancesheet(p.17) Valueatrisk(p.18) Consolidatedfin
Slide 3: Executive summary (1/2)
Executive summary (1/2) FY2022/23 full year highlights Shareholder returns Income before income taxes: Y149.5bn (-34% YoY); Net income1: Y92.8bn (-35% YoY); Dividend per share: EPS2: Y29.74; ROE3: 3.1%—Year-end Y12; Annual Y17 Three segment income before income taxes of Y106.4bn (-48% YoY) Launched
Slide 4: Executive summary (2/2)
Executive summary (2/2) Income (loss) before income taxes and net FY2022/23 4Q highlights income (loss)1 ® Net revenue: Y324.9bn (-17% QoQ); Income before income taxes: Y22.7bn (-73% QoQ); Net Groupwide (billions of yen) income1: Y7.4bn (-89% QoQ); EPS2: Y2.34; ROE3 : 0.9% Income (loss) before incom
Slide 5: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q QoQ YoY Full year Full year YoY Net revenue 340.8 299.0 318.0 393.7 324.9 -17% -5% 1,363.9 1,335.6 -2% Non-interest expenses 291.3 287.3 286.5 310.1 302.2 -3% 4% 1,137.3 1,1
Slide 6: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q QoQ YoY Full year Full year YoY Net revenue Retail 70.5 71.4 72.5 81.0 75.3 -7% 7% 328.0 300.2 -8% Investment Management 10.1 7.6 26.2 57.0 37.8 -34% 3.
Slide 7: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) Full year Quarter Full year FY21/ ® Net revenue: Y300.2bn (-8% YoY) FY21/ FY22/ FY22/23 before 22 23 22 QoQ YoY ® Income income taxes: Y33.5bn (-43% YoY) 4Q 1Q 2Q 3Q 4Q—Retail clients remained on sidelines due to market u
Slide 8: Retail: Solid sales driven by stock offerings
Retail: Solid sales driven by stock offerings Total sales1 (billions of yen) Total sales1 declined 10% QoQ ® Stocks: +12% QoQ Stocks 5,000.0 – Strong growth in sales of stocks driven by public and secondary offerings (primary stock subscriptions2: Y363.8bn; 3.6x QoQ 4,000.0 Bonds: -35% QoQ Bonds® –
Slide 9: Retail KPI summary
Retail KPI summary Net inflows of recurring revenue assets1 Recurring revenue assets and recurring revenue2 (billions of yen) ® Investment trusts, insurance and loans contributed to ongoing (trillions of yen) (billions of yen) net inflows of recurring revenue assets Recurring revenue assets Recurrin
Slide 10: Investment Management
Investment Management Net revenue and income (loss) before income taxes Key points (billions of yen) Full year Quarter Full year Net revenue: Y128.6bn (-13% YoY) FY21/ FY21/ FY22/ FY22/23 Income before income taxes: Y43.5bn (-39% YoY) 22 QoQ YoY 22 23 4Q 1Q 2Q 3Q 4Q- Business revenue remained roughl
Slide 11: Investment Management: Ongoing inflows into core investment trusts and alternatives
Investment Management: Ongoing inflows into core investment trusts and alternatives Assets under management (net)1 (trillions of yen) Investment advisory and international businesses, etc. AuM lifted by market factors Investment trust business 80.0ï® Investment trust business 67.9 65.6 64.8 67.3 64.
Slide 12: Wholesale
Wholesale Net revenue and income (loss) before income taxes2 Key points Full year (billions of yen) Full year Quarter Net revenue: Y772.4bn (+10% YoY); Income before income taxes: Y29.4bn FY21 (-61% YoY) FY21 FY22 FY2022/23 Fixed Income revenues increased driven by Macro Products; In Equities /22 Qo
Slide 13: Wholesale: Global Markets
Wholesale: Global Markets Net revenue Key points (billions of Full year Quarter Full year yen) Net revenue: Y656.3bn (+18% YoY) 700.0 200.0- Fixed Income revenues grew 23% driven by Macro Products- Equities revenues increased 11% as losses related to transactions with a US client were no longer pres
Slide 14: Wholesale: Investment Banking
Wholesale: Investment Banking Sustainability-related Cross-border Net revenue Executed multiple high profile deals; Highly ranked by third parties (billions Full year Quarterï® Announced several deals such as high profile tender offer and of yen) sustainability-related transactions 150.0 40.0 KKR’s
Slide 15: Non-interest expenses
Non-interest expenses Full year Fourth quarter Key points (billions of yen) (billions of yen) Full year ï® Non-interest expenses: Y1,186.1bn 1,500—Up 4% YoY due mainly to yen Other 400 depreciation; Declined YoY when FX 1,137.3 1,186.1 impact stripped out Business development 310.1 302.2 Compensatio
Slide 16: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 (trillions of yen) Mar 2022 Dec 2022 Mar 2023 RWA (Basel 3) (lhs) CET 1 capital ratio (Basel 3) (rhs) ï® Total assets Y43.4trn Y49.2trn Y47.8trn 20.0 17.2% 16.7% 16.9% 20.0% 16.0% 16.2% ® Share
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Mar 31, Increase Mar 31, Mar 31, Increase 2022 2023 (Decrease) 2022 2023 (Decrease) Assets Liabilities Total cash and cash deposits 4,064 4,521 458 Short-term borrowings 1,050 1,009 -42 Total payables and deposits 4,920
Slide 19: Value at risk
Value at risk Definition From April 1, 2022, to March 31, 2023 (billions of yen) 95% confidence level Maximum: 6.8 1-day time horizon for outstanding portfolio Minimum: 2.7 Inter-product price fluctuations considered Average: 4.8 (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 Mar Mar Mar
Slide 20: Consolidated financial highlights
Consolidated financial highlights Full year Quarter (billions of yen) 200 8% 200 8% Net income (loss) 143.0 attributable to 150 5.1% 6% 150 6% Nomura Holdings, 5.1% Inc. (“NHI”) shareholders 92.8 3.8% 100 4% 100 4% 3.1% ROE (%) 3.1% 66.9 50 2% 50 1.2% 2% 31.0 0.2% 16.8 7.4 1.7 0 0% 0 0% FY2021/22 FY
Slide 21: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q Revenue Commissions 332.3 279.9 75.2 70.4 68.2 77.5 63.8 Fees from investment banking 149.6 113.2 34.0 27.3 24.2 33.8 28.0 Asset management and portfolio service fees 270.0 271.7 68.9 68.3
Slide 22: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q Stock brokerage commissions 236.4 190.8 53.1 48.4 48.5 52.6 41.3 Commissions Other brokerage commissions 18.0 17.9 5.5 4.8 4.7 4.3 4.0 Commissions for distribution of investment trusts 43.7
Slide 23: 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 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q Retail 59.2 33.5 5.2 4.9 5.5 13.3 9.8 Inv
Slide 24: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 59.5 30 15.8 14.9 15.7 2.1 0 1 -3 2.9 3 4 5 -30 FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q Net gain (loss) related to economic -9.9 -4.8 -8.4 -9.8 0.1 -1.5 6.3 hedging transactions Realized g
Slide 25: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q QoQ YoY Commissions 138.5 112.5 27.8 26.0 26.2 31.2 29.1 -6.7% 4.6% Of which, stock brokerage commission 67.4 50.9 14.4 11.8 12.2 13.4 13.4 0.3% -6.9% Of which, commissions for distribu
Slide 26: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 140 Other 122.1 122.2 122.1 122.2 119.4 117.7 117.5 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2021/22 FY2022/23 FY2021/22 FY2022/23 Ma
Slide 27: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 (billions of yen) Full year Quarter Corporates Individuals Corporates Individuals 1,200 1,200 900 900 600 600 300 300 0 0 -300 -300 -600 -600 FY2021/22 FY2022/23 FY2021/22 FY2022/23 4Q 1Q 2Q 3Q5 4Q Corporates2 -136 282 722 125 267 -137 27 I
Slide 28: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2021/22 FY2022/23 FY2021/22 FY2022/23 Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,348 5,353 5,348 5,354 5,359 5,352 5,353 Equity holding accounts 2,955 2,963 2,955 2,958 2,957 2,950 2,963 NISA accounts opened (accumulated)1 1,589 1,632
Slide 29: Investment Management related data (1)
Investment Management related data (1) Full year Quarter FY2021/22 FY2022/23 (billions of yen) FY2021/22 FY2022/23 QoQ YoY 4Q 1Q 2Q 3Q 4Q Business revenue 119.9 120.7 31.1 30.7 29.9 31.4 28.7 -8.4% -7.7% Investment gain/loss 28.1 7.9 -21.1 -23.1 -3.7 25.6 9.1 -64.5% -Net revenue 148.0 128.6 10.1 7.6
Slide 30: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1 2 Full year Quarter FY2021/22 FY2022/23 (billions of yen) FY2021/22 FY2022/23 4Q 1Q 2Q 3Q 4Q Investment trusts business 1,236 156 372 478 137 -100 -358 of which ETFs 683 -250 383 323 -5 -347 -221 Investment advisory and 830 -
Slide 31: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2021/22 FY2022/23 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 703.1 772.4 194.9 199.0 205.5 189.1 178.8 -5.4% -8.2% Non-interest expenses 628.6 743.0 157.9 173.7 185.3 190.9 193.1 1.1% 22.3% Income (loss) before income taxes 74.
Slide 32: Number of employees
Number of employees FY2021/22 FY2022/23 FY2021/22 FY2022/23 Mar Mar Mar Jun Sep Dec Mar Japan 15,213 15,131 15,213 15,503 15,384 15,282 15,131 Europe 2,820 2,937 2,820 2,811 2,869 2,908 2,937 Americas 2,257 2,387 2,257 2,252 2,358 2,392 2,387 Asia and Oceania1 6,295 6,320 6,295 6,407 6,520 6,634 6,3
Slide 33: 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 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com