Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (November 2010)
28 slides from Nomura's debt investor presentation, November 2010
Slide 1: Debt Investor Presentation, 2nd Quarter FYE March 2011
Debt Investor Presentation 2nd Quarter, Fiscal Year Ending March 2011 Nomura Holdings, Inc.
Slide 2: Disclaimer
This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2010 Nomura Holdings, Inc. All rights reserved. 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
Slide 3: Presentation
Presentation Overview of Nomura Overview of Q2 FYE’11 Capital, Liquidity and Risk Management Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calculated at the exchange rate of USD 1 = JPY 83.53, i.e. FRB noon rate as of September 30, 2010 3
Slide 4: Overview of Nomura
1 Overview of Nomura 2 Overview of Q2 FYE’11 3 Capital Liquidity and Risk Management 4 Appendix
Slide 5: Overview of Nomura
Overview of Nomura ■ Executing the global strategy to build a world-class financial services firm – Critically important to Japan capital markets, with top market share in key segments – Growth prospects in Wholesale segment underpinned by leading position in Retail and Asset Management franchise th
Slide 6: A Leading Independent Investment Bank Focused on Clients
A Leading Independent Investment Bank Focused on Clients JPY 34tn ($411bn) balance sheet1, operating globally with more than 27,000 employees1 and overseas offices in 47 cities2, offering a full range of financial products and solutions across investment banking, asset management and brokerage G
Slide 7: Overview of Q2 FYE'11
1 Overview of Nomura 2 Overview of Q2 FYE’11 3 Capital Liquidity and Risk Management 4 Appendix
Slide 8: Summary of Second Quarter Results
Summary of Second Quarter Results Sixth consecutive quarter of profitability amid persistence of lower capital market activities globally Net revenue for the three months ended September 2010 increased 6.1% from the first quarter, but declined 8.1% from 2QFYE’10 Wholesale net revenue improved
Slide 9: Overview of Results
Overview of Results Highlights 2Q net revenue totaled JPY 275.6bn ($3.3bn), up 6.1% from 1Q, and included JPY 5.6bn ($67 mn) negative impact from credit value adjustment in own credit in Other segment and JPY 5bn ($60mn) unrealized losses on investment equity Income before taxes increased 233.8%
Slide 10: Revenue Trends
Revenue Trends Commissions and asset management & portfolio service fees continued to provide a stable revenue engine across business and economic cycles The Retail and Asset Management franchises provide the foundation for growth in the expanding global Wholesale segment Revenue Trend Revenue (
Slide 11: Wholesale: Global Markets
Wholesale: Global Markets Wholesale performance improved from 1Q despite continued slow activity globally as revenues increased across all businesses On-boarded over 1,200 new Global Markets client trading relationships across cash and derivatives in 2Q Net Revenue and Income (Loss) Before Incom
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets International client platform continues to expand, gaining market recognition in key product areas On-boarding of ISDA clients1 and achievements in key product areas EMEA client franchise growth1 Asia ex-Japan client franchise growth1 US client franchise growth1 Indexed,
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking Net revenue of JPY19bn ($227mn) increased 56% QoQ as deal flow improved from a sluggish 1Q, highlighted by advisory role on several large cross-border M&A transactions Net Revenues and Income (Loss) Before Income Taxes Commentary (billions of yen) FY2009/10 FY2010/11
Slide 14: Wholesale: Investment Banking: Strength in Cross-Border M&A
Wholesale: Investment Banking: Strength in Cross-Border M&A Notable Deals from FY2010/11 H1 EMEA AEJ Japan Americas Grifols – Talecris (Spain – US) Financial Advisor to Grifols US$ 4.0bn Jun 2010 (Pending) Carlsberg – Chongqing Brewery (Denmark – China) Financial Advisor to Carlsberg JFE Steel - JSW
Slide 15: Retail
Retail In spite of a tough environment as ongoing yen appreciation and directionless stock market led to subdued client activities, achieved net asset inflows on continued inflow of funds into core product areas of investment trusts and foreign bonds Net Revenue and Income Before Income Taxes Reta
Slide 16: Asset Management
Asset Management AUM, investment trust and investment advisory businesses growing, maintaining dominant position in home markets Net Revenue and Income Before Income Taxes Assets Under Management (billions of yen) Key performance indicator (trillions of yen) 23.3 23.1 23.4 FY2009/10 FY2010/11 (USD
Slide 17: Expense Levels
Expense Levels Level of non-interest expense peaked in 2009 and have steadily declined since and is currently stable, mainly driven by prudent cost management and performance-based compensation, despite an increase in headcount numbers. Non-PE remained flat as major infrastructure investments re
Slide 18: Capital, Liquidity and Risk Management
1 Overview of Nomura 2 Overview of Q2 FYE’11 3 Capital Liquidity and Risk Management 4 Appendix
Slide 19: Strong Capitalization, Liquidity Profile and Balance Sheet Management
Strong Capitalization, Liquidity Profile and Balance Sheet Management Best-in-class capital levels, with Tier 1 ratio of 16.5% and Total Capital Ratio of 22.7% as of September 20101 Balance sheet gross leverage remained at comfortable levels at 16.7x, net leverage at 9.8x Liquidity pool at $65
Slide 20: Managed Level 3 Assets
Managed Level 3 Assets Level 3 Assets vs. Tier 1 Capital (%)1 Breakdown of Level 3 Assets (September 2010)1,2 Gross Level III Assets Private Equity 155% Level III derivatives Liabilities 9% 129% 8% 21% Equities Net Level III Assets (Net of Derivatives Liabilities) 98% 85% 82% 78% Derivative contract
Slide 21: Liquidity & Funding: Stable Funding Structure
Liquidity & Funding: Stable Funding Structure Liquidity pool remained historically high at $65bn, well exceeding 12 months of contractual obligations under stress conditions Pooled assets diversified by currency and are invested in instruments readily convertible into cash Smooth maturity prof
Slide 22: Liquidity & Funding: Stable Funding Sources
Liquidity & Funding: Stable Funding Sources In the first half of FYE’11, the firm took advantage of stable Asian markets – Placed long-dated bonds, including 15-year, totaling JPY180bn in Japan – Issued approximately JPY 175bn equivalent 4-year AUD & NZD bonds, JPY32bn equivalent 4-yr USD bonds in
Slide 23: Basel III
Basel III Implications of Basel III Outlook of Implications of Key Items Estimates for March 2013 (billions of yen) Tier 1 common ratio Sep 2010 (actual) Mar 2013 Risk-weighted assets are expected to be about Y19trn at the end of March 2013 as investment Net revenue - 1,370 securities decline due to
Slide 24: Appendix
1 Overview of Nomura 2 Overview of Q2 FYE’11 3 Capital Liquidity and Risk Management 4 Appendix
Slide 25: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of ye n) M ar. 31, Se p. 30, Incre as e M ar. 31, Se p. 30, Incre as e 2010 2010 (De cre as e ) 2010 2010 (De cre as e ) A ssets Liabilities Cash and cash deposits 1,352 945 (407) Short-term borrow ings 1,302 1,173 (128) Payables and de
Slide 26: Consolidated Income
Consolidated Income FY2010.3 FY2011.3 (billions of ye n) FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 2Q 3Q 4Q 1Q 2Q Revenue Commissions 356.3 337.5 404.7 306.8 395.1 95.4 101.0 96.6 118.1 83.5 Fees from investment banking 108.8 99.3 85.1 55.0 121.3 15.6 44.5 31.4 20.4 24.9 Asset management and port
Slide 27: Credit Ratings
Credit Ratings Rating and Japan Credit Rating S&P Moody's Investment Agency As of 29 October 2010 Information As of 17 June 2010 Nomura Holdings, Inc. Long-term BBB+ Baa2 A+ AA- Short-term A-2 - a-1 - Outlook Stable Stable Stable Stable Nomura Securities Co., Ltd. Long-term A- Baa1 A+ AA- Short-term
Slide 28: Global Reach
Global Reach ■ The 2008 acquisition of Lehman Brothers Europe & Asia, along with organic hiring in the Americas, has given Nomura a complete global footprint Global Presence Europe and Middle East Asia-Pacific Americas Dubai Beijing San Francisco Doha Hong Kong Los Angeles Bahrain Shanghai Toronto R
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