Nomura Holdings, Inc. · TSE:8604

Nomura — Q1 FY2004 Earnings Presentation

34 slides from Nomura's earnings presentation, July 2003

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

    Consolidated Results of Operations (US GAAP) First quarter, fiscal year ended March 2004 Nomura Holdings, Inc. July 2003 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 2003 Nomura Holdings, Inc. All rights re

  3. Slide 3: Consolidated Financial Summary

    Consolidated Financial Summary First quarter ended March 31, 2004 ¾ Net revenue 200.1 (up 40%*) ¾ Non-interest expenses 128.8 (up 4%*) ¾ Income before income taxes 71.3 (up 288%*) Results for the ¾ Income before cumulative 39.0 (up 385%*) First Quarter effect of accounting change (Billions of yen) ¾

  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 (Billions of yen) 40 Up 4% 36.5 37.8 Total Income before Income Taxes for 3 Business Segments FY03.3 1Q 51.5 30 2Q 11.7 3Q 41.9 22.8 4Q 24.8 20.8 FY04.3 1Q 58.7 20 Up 49% 13.9 10 8.9 Down 92%

  6. Slide 6: Domestic Retail (1)

    Domestic Retail (1)* Points Net Revenue „ Commissions (25.7 billion yen, down 19%) 9 Stock Brokerage Commissions** (12.1 billion yen, down 28%) (Billions of yen) ¾ Individual Equity Agency Transaction Value*** 80 Up 12% 75.0 (monthly average) 5.0 trillion, down 3% 70 67.0 ¾ Equity Holding Accounts 1

  7. Slide 7: Domestic Retail (2)

    Domestic Retail (2) Distribution of Foreign Currency Bonds for Retail Investors/ Revenue Breakdown (approx. figs.) Foreign Currency Bond Distribution to Revenue Breakdown Retail Investors 100% 0% 1% 3% (Billions of yen) 7% 1,000 976.8 90% 14% 24% 14% 80% 900 15% 70% 13% 800 21% 756.0 60% 700 28% 50%

  8. Slide 8: Domestic Retail (3)

    Domestic Retail (3) Client Assets / Net Asset Accumulation (excluding financials) Client Assets Net Asset Accumulation (Domestic Retail Division, excluding financials) (monthly average) Foreign bonds Domestic bonds* (Trillions Equities Stock investment trusts of yen) (Billions of yen) Bond investmen

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

    Global Wholesale (1) Fixed Income Points Net Revenue „ Foreign Currency Bond Distribution to Retail Investors (Billions of yen) 9 976.8 billion yen, up 95% YOY 70 „ Foreign Currency Bond Public Offering to Retail Investors 62.3 9 KfW: 118.8 billion yen (A$) Up 42% 9 IBRD: 99.8 billion yen (Can$) 60

  10. Slide 10: Global Wholesale (2) Equity

    Global Wholesale (2) Equity Points Net Revenue „ Market Environment (Billions of yen) 9 Equity Agency Transaction Value* (monthly average) 35 30.6 trillion yen, down 11% YOY 30.4 9 Businesses focused on customer order flow 30 „ Net Gain on Equity Trading (Nomura Securities) Down 33% 25 (Billions of

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

    Global Wholesale (3) Investment Banking Points Net Revenue „ IPO, PO* (Billions of yen) 9 IPO Market: 137.5 billion yen, up 318% YOY 20 Nomura: 7.1 billion yen, down 34% YOY 17.3 16.8 9 PO Market: 78.8 billion yen, down 79% YOY 15 Down 23% Nomura: 49.6 billion yen, down 66% YOY 12.9 Major Issue: Dai

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

    Global Wholesale (4) Merchant Banking Points Net Revenue (Billions of yen) „ Exit Transactions 5 9 Daikuma 4 „ Exposure to Merchant Banking Business 3 2 Terra Firma I NPF 1 (Billions of yen) 291.0 300 281.8 284.9 0 14.3 16.1 19.2 250 -1 -2 -1.3 -1.4 200 -1.7 -3 150 276.7 265.7 265.7 -4 100 FY03.3 1Q

  13. Slide 13: Asset Management (1)

    Asset Management (1) Points „ New Funds Net Revenue 9 Attractive Dividends Blue Chip Fund 2 Sales: 25.4 billion yen (Billions of yen) 12 „ Assets Under Management of NCRAM 9 Jun. 30, 2002 US$ 3.7 billion 9.8 Down 15% 10 9 Jun. 30, 2003 US$ 5.3 billion (up 43% YOY) 9.3 8.3 „ Assets Under Management o

  14. Slide 14: Asset Management (2)

    Asset Management (2) Assets Under Management (NAM) Market Share (NAM) (Trillions of yen) 25 Stock investment trusts Bond investment trusts Bond investment trusts Investment advisory Other Total public investment trusts 45% Stock investment trusts 20 18.2 40% 40% 40% 40% 39% 39% 0.2 17.1 40% 0.2 15.6

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

    Non-Interest Expenses* (1) (Billions of yen) Points 150 Up 4% 128.8 129.7 „ Compensation and Benefits 124.3 65.9 billion yen, up 4% 120 90 „ Information Processing and Communications 18.9 billion yen, up 4% 60 „ Business and Development Expenses 5 billion yen, down 15% 30 „ Other Expenses (of which

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

    Non-Interest Expenses* (2) „ Compensation and Benefits 9 Fixed-type expenses: 36.6 billion yen, down 0.2% 9 Variable-type expenses: 29.3 billion yen, up 8.9% (Billions of yen) Compensation and Benefits** 50 40.4 40 36.7 Fixed-type 36.6 expenses 34.2 35.3 35.0 34.3 36.6 36.0 30 32.5 29.3 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 Non-interest revenue 60,953 50,806 57,224 57,172 66,436 56,136 69,366 54,999 74,573 Net-interest revenue 1,076 467 870 537 599 605 915 194 397 Net revenue 62

  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 Net revenue 20,727 23,175 19,549 27,302 43,887 32,476 41,550 36,052 62,261 Non-interest expenses 15,450 16,768 15,648 18,873 18,944 16,334 17,605

  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 Net interest revenue 1.1 0.5 0.9 0.6 0.6 0.8 0.7 0.2 1.2 Sales credit 13.1 12.3 18.8 17.3 20.5 17.8 32.2 25.2 40.4 Investment trust administration fees and other 14.9 13.2 12.6 12.4 12.3 7.

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

    Major Differences (Segment / Income Statement) (FY04.3 three months) Total Income before Income Taxes for 3 Business Segments: 58.7 billion yen Loss/gain on undesignated hedging instruments -6.6 billion yen included in Net gain on trading Loss/gain on investment securities 1.1 billion yen Equity in

  22. Slide 22: Revenue (1)

    Revenue (1) (Commissions) (Billions of yen) 50 46.1 39.6 40 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 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 39.6 31.0 34.6 34.8 46.1 34.7 34.3 26.6 33.8 Other 2.4 5.8 3.2 4.4 5.7 9.8 5.3 5.2 4.5 Commissions

  23. Slide 23: Revenue (2)

    Revenue (2) (Fees from Investment Banking) (Billions of yen) 35 31.0 30 25 22.9 19.6 20 18.6 18.3 16.9 15.6 14.1 14.5 15 10 5 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 14.1 22.9 19.6 18.6 15.6 18.3 16.9 31.0 14.5 Other 0.4 0.3 0.1 0.5 0.3 1.0 0

  24. Slide 24: Revenue (3)

    Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) 35 29.6 30 27.8 26.9 25.7 25 24.2 21.9 20 17.5 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 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 29.6 27.8 25.7 26.9 24.2 21.9 17.5 15.7 13.7 Custodial fees 2

  25. Slide 25: Revenue (4)

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

  26. Slide 26: Non-interest Expenses

    Non-interest Expenses* (Billions of yen) 250 239.4 200 185.1 162.9 150 128.8 121.8 124.3 118.5 117.7 113.2 100 50 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Total 121.8 239.4 117.7 185.1 124.3 118.5 113.2 162.9 128.8 Other (special losses) 0.4 93.4 0.

  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 Equities 28.9 24.9 24.8 25.1 24.9 23.6 22.3 21.6 24.8 Bonds 12.3 12.8 13.3 13.7 14.9 15.4 15.4 16.8 17.9 Stock investment trusts 3.2 2.6 2.7 2.7 2.7 2.5 2.4 2.4 2.6 Bond investm

  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.03 686 778 860 936 1,005 1,079 1,114 1,141 1,168 IT Share FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q No. of order 38% 36% 37% 39% 39% 38% 33% 42% 45

  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 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Market 4.9 3.3 3.9 4.0 5.2 3.9 5.2 3.1 5.0 Nomura's share 16% 16% 16% 13% 20% 16% 17% 8% 8% Off-floor/Off-exchange Equity Trading S

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

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

  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 Stock investment trusts 2.7 2.4 2.9 3.2 3.6 3.3 3.3 3.2 3.5 Bond investment trusts 14.5 12.9 10.9 10.4 9.2 8.3 7.8 7.3 7.0 Non-public investment 0.2 0.2 0.2 0.2 0.2 0.

  32. Slide 32: Value at Risk (Consolidated)

    Value at Risk (Consolidated) „ Definition „ From Apr. 2002 to Jun. 2003 ¾ 99% confidence level ¾ Maximum: 4.0 billion yen ¾ 1-day time horizon for out trading portfolio ¾ Minimum: 1.7 billion yen ¾ Inter-product price fluctuations considered ¾ Average: 2.65 billion yen (Billions of yen) End of Month

  33. Slide 33: Number of Employees

    Number of Employees Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Asia/Oceania 473 476 464 468 469 462 461 616 622 Americas 874 893 881 827 769 753 752 797 821 Europe 1,380 1,449 1,430 1,381 1,346 1,352 1,343 1,389 1,439 Japan (FA, SA) 2,260 2,192 2,130 2,177 2,110 2,072 2,

  34. Slide 34: Nomura Holdings, Inc.

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

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