Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2023/24 Earnings Presentation
33 slides from Nomura's earnings presentation, July 2023
Slide 1: CFO overview of first quarter results
Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first quarter of the year ending March 2024 using the document titled Consolidated Results of Operations. Please turn to page two.
Slide 2: Presentation and Financial Supplement contents
Presentation Financial Supplement Executive summary (p. 2) © Overview of results (p. 3) © Business segment results (p. 4) © Retail (p. 5-7) © Investment Management (p. 8-9) © Wholesale (p. 10-12) © Non-interest expenses (p. 13) © Robust financial position (p. 14) © Consolidated balance sheet (p. 16)
Slide 3: Groupwide results overview
Groupwide net revenue was 348.9 billion yen, up 7 percent quarter on quarter. Income before income taxes increased 104 percent to 46.3 billion yen. Net income was 23.3 billion yen, 3.2 times higher than the previous quarter. EPS was 7.4 yen and annualized ROE was 2.9 percent. During the first half o
Slide 4: Highlights
Highlights = (bilions of yen, excluding EPS and ROE) 3S ae ee ee ee eye e | ads o flo fl a |] a gi stiet ati & eevecnnh newnees beewnn onennt 2 x nN = 3 alae afi et ed 2 ayeil ei etl sl 3 eflgelie let si & 2 ° 5 * ] g 8 = rs 8
Slide 5: Net revenue and income before income taxes by segment
Net revenue and income (loss) before income taxes 49 55 133 98 229 133% 4% NT 56 333 16.4 36 -78% - 253 202 19 142 21 - 92% 3.9 24 59.5 15.7 219 40% 2 28 18 -207 49 43 - - 1 WT 315 83.6 227 463 104% 3.x “Additional information on “Other" (FY2023/24 10) © Gain relatedto economichedging (Y3.4n) ™ Loss
Slide 6: Retail results
All the percentages I mention from now are quarter-on-quarter comparisons. Retail net revenue increased 22 percent to 92.1 billion yen and income before income taxes increased 133 percent to 22.9 billion yen. Since 2019, Retail has been reforming its channels by allocating sales staff in line with t
Slide 7: Retail sales
Total sales for the quarter reached 5.4 trillion yen, up 21 percent. Of this, 2.8 trillion yen was sales of stocks. We saw the results of our efforts from last year to promote the attractiveness of investing in Japanese stocks and a tailwind from the market rally from May led to a significant increa
Slide 8: Retail KPIs
Net inflows of recurring revenue assets was negative 71.4 billion yen as some corporate clients sold out. Excluding the corporate clients section which is affected by these large transactions, net inflows were 10 billion yen. As shown on the right, recurring revenue assets reached a record high of 2
Slide 9: Investment Management results
Net revenue declined 30 percent to 26.5 billion yen. Income before income taxes dropped 78 percent to 3.6 billion yen. As shown on the bottom left, investment gain/loss was negative 6 billion yen. While private equity firm Nomura Capital Partners booked unrealized gains, we posted an unrealized loss
Slide 10: Assets under management and net inflows
As you can see on the top left, assets under management at the end of June were a record 76.1 trillion yen, which is higher than our March 2025 target of 75.8 trillion yen. Of course, market factors had a big part to play in this, but net inflows were 1.7 trillion yen, marking the highest level in 3
Slide 11: Wholesale results
Net revenue increased 7 percent to 190.9 billion yen and income before income taxes was 2.1 billion yen, improving from a loss last quarter. The graph on the bottom right show Japan revenues of 69.2 billion yen, representing the strongest quarter since the third quarter of the year ended March 2016.
Slide 12: Global Markets
First Global Markets. Net revenue increased 7 percent to 160.4 billion yen. Fixed Income revenues were 97.4 billion yen, up 11 percent. Spread Products made a significant contribution to revenues. In Credit, the interest rate differential between Japan and overseas drove a strong increase in revenue
Slide 13: Investment Banking
Net revenue increased 3 percent to 30.5 billion yen. Despite ongoing declines in global fee pools, our Advisory business booked stronger revenues on contributions from completed M&A deals in EMEA in focus sectors such as consumer and retail and healthcare. As shown on the right, we supported multipl
Slide 14: Non-interest expenses
Groupwide non-interest expenses were roughly unchanged from last quarter at 302.6 billion yen. Excluding the impact of yen depreciation, expenses actually declined slightly from last quarter. Compensation and benefits was up 2 percent at 158.7 billion yen due to yen depreciation and a rise in base p
Slide 15: Financial position and closing summary
The table on the bottom left shows Tier 1 capital of 3.3 trillion yen, up about 140 billion yen from the end of March. Risk-weighted assets increased by 570 billion yen from the end of March to 17.9 trillion yen. As a result, our CET1 capital ratio at the end of June was 16.5 percent. The waterfall
Slide 16: Financial Supplement
Financial Supplement 15
Slide 17: Consolidated balance sheet
Consolidated balance sheet (billions of yen) Assets Total cash and cash deposits Total loans and receivables Total collateralized agreements Total trading assets and private equity and debt investments’ Total other assets’ Equty Total NHI shareholders’ equity Total assets Noncontrolling interest 1 I
Slide 18: Value at risk
1 = Definition = FromApril 1, 2023, to June 30, 2023 (billions of yen) — 95% confidence level - Maximum: 6.3 — 1-day time horizon for outstanding portfolio — Minimum: 46 — Inter-product price fluctuations considered — Average 54 (billions of yen) Equity Interest rate 23 47 48 37 40 47 46 Foreign exc
Slide 19: Consolidated financial highlights
1 Full year 200 8% ‘== Net income (loss) attributable to 1504 43-0 51% 6% Nomura Holdings, Inc. CNHI") 100 — 3. 4% ROE (%) ct) 2% 0 0% frm mea yg oo Net revenue 1,363.9 1,335.6 299.0 318.0 393.7 324.9 348.9 Income (loss) before income taxes 226.6 149.5 41.7 31.5 836 227 46.3 Net income (loss) attrib
Slide 20: Consolidated income
Full year Quarter (billions of yen) ‘Pramavae ryan Fy202223 Fv 2023/24 Revenue Commissions 332.3 279.9 70.4 68.2 775 63.8 82.8 Fees from investment banking 149.6 113.2 27.3 24.2 33.8 28.0 inl Asset management and portfolio service fees 270.0 271.7 68.3 69.0 67.0 67.4 1.8 Net gain on trading 368.8 56
Slide 21: Main revenue items
Full year Quarter
Slide 22: Income before income taxes by segment and region
Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter Gilions of yen) rave pram 4, Frat Retail 59.2 33.5 49 55 13.3 98 229 Investment Management 71.5 43.5 NT 56 33.3 16.4 3.6 Wholesale 745 29.4 253 202 1.9 “14.2 24 Three business segments total 2
Slide 23: Segment Other
Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 59.5 30 158 187 21.9 24 0 “39 -30 cae es "o ; ; i - o Net gain (loss) related to economic 99 48 98 01 15 63 34 Realized gain (loss) on investments in equity jes held for . 14 284 02 O14 21.9 62 82 Equity in earnings of
Slide 24: Retail related data
Full year Quarter (billions of yen) femme gg yg Commissions 138.5 1125 26.0 262 12 2.1 43 MP 58.9% Of which, stock bro! commission 674 50.9 118 122 134 B4 19.1 42.3% 62.1% Clintich commissions tr a trusts 435 02 75 64 83 8.0 34 = 67.26 B.2% Sales credit 440 42 10.4 10.9 122 10.6 128 20.2% 2 Fees fro
Slide 25: Retail client assets
Retail clientassets (trillions of yen) © Other 119.4 77 = Foreign investment E trusts = Bond investment trusts = Stock investment trusts = Domestic bonds = Foreign currency bonds = Equities i. dun Sep Dee Mar Equities 75.7 74.0 Foreign 53 54 Domestic bonds’ 127 129 Stock it 10.0 98 Bond it 74 72 For
Slide 26: Net inflows of cash and securities
Net inflows of cash and securities" (billions of yen) Full year Quarter = Corporates Individuals =Corporates individuals 4,200 1,200 900 900 600 600 300 300 : : Boe fF -300 -300 -600 -600 -Pranaizepvenaazs ee Corporates* 136 282 125 267 137 27 108 Individuals® 488 438 376 -369 259 473 106 Total 351
Slide 27: Number of accounts
Number of accounts (thousands) — Fyzo2w22 Fy2q23 v0 202SIA Accounts with balance 5,348 5,353 5,354 5,359 5,362 5,353 5,395 Equity holding accounts 2,955 2,963 2,958 2,957 2,950 2,963 2,943 NISA accounts opened (accumulated)" 1,589 1,632 1,598 1,609 1,625 1,632 1,681 Online service accounts 5,067 5,2
Slide 28: Investment Management related data
Full year Quarter 20227238 0 cose = — 100 QQ 1 revenue 119.9 120.7 30.7 29.9 314 287 325 13.2% 6.1% gain/loss 28.41 79 BA 37 256 94 6.0 - . Net revenue 148.0 128.6 76 26.2 57.0 378 265 29.9% 3.5x Non-interest expenses 765 85.4 193 206 237 215 29 6.6% 18.7% Income (loss) before income taxes 15 43.5 A
Slide 29: Asset inflows/outflows by business
Asset inflows/outflows by business‘? Full year Quarter Investment trusts business 1,236 156 478 137 -100 358 649 of which ETFs 683 250 323 5 aT 221 a2 pivestrashit edansy an 830 316 928 89 57 134 1,064 Total net asset inflow 2,066 760 450 226 44 492 4113 Domestic public investment trust market and N
Slide 30: Wholesale related data
Full year Quarter (billions of yen) ES Seo oe oe oe oe eed 1a 2 Qt Net revenue 703.1 772.4 199.0 205.5 189.1 178.8 190.9 6.7% AA Non-interest expenses 628.6 743.0 173.7 185.3 190.9 193.1 188.7 22% 8.7% Income (loss) before income taxes 74.5 294 25.3 20.2 19 14.2 24 - 91.7% Breakdown of Wholesale rev
Slide 31: Number of employees
Japan 15,213 15.131 15,503 15,384 15,282 15,131 15,382 Europe 2,820 2,937 2,811 2,869 2,908 2,937 2,971 Americas 2,257 2,387 2,252 2,358 2,392 2,387 2,426 Asia and Oceania’ 6,295 6,320 6,407 6,520 6,634 6,320 6,465 Total 26,585 26,775 26,973 27,131 27,216 26,775 27,244 1. Includes Powai office in In
Slide 32: 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, sales, solici
Slide 33: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com