Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (February 2011)
26 slides from Nomura's debt investor presentation, February 2011
Slide 1: Debt Investor Presentation, 3rd Quarter FYE March 2011
Debt Investor Presentation 3rd Quarter, Fiscal Year Ending March 2011 Nomura Holdings, Inc.
Slide 2: This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2011 Nomura Holdings,
This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2011 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: Agenda
1 Overview 2 Summary of Third Quarter Ended December 2010 3 Funding Profile 4 Capital and Risk Management 5 Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calculated at the exchange rate of USD 1 = JPY 81.67, i.e. FRB noon rate as of December 30, 2010
Slide 4: Overview
Overview ■ Critically important to Japan capital markets – Top market share in key retail and institutional segments ■ Leveraging our strength in Asia and dominant Retail, Retail Asset Management and Wholesale franchise in Japan to grow our rapidly developing international Wholesale platform ■ Stron
Slide 5: Summary of Third Quarter Ended December 2010
1 Overview 2 Summary of Third Quarter Ended December 2010 3 Funding Profile 4 Capital and Risk Management 5 Appendix
Slide 6: Summary of Third Quarter Ended December 2010
Summary of Third Quarter Ended December 2010 Solid Performance 7 consecutive positive quarters despite challenging macroeconomic environment 3Q nett revenue up 7% QoQ Q Q and d 8% YoY, Y Y allll three th b businesses i segments t posted t d higher hi h revenue and d pretax t iincome Pre-tax
Slide 7: Third Quarter Results
Third Quarter Results (JPY bn) Third Quarter YTD Commentary Net revenue totaled Y295.9bn ($3.6 bn) , up 7% Q Q QoQ YoY FYE2011 YoY FYE2011 Q3 QoQ as all three businesses posted stronger (%) (%) YTD (%) results and were profitable in a challenging global environment Business segment income before
Slide 8: Retail
Retail Robust performance in the stock-related business and distribution of a wide range of investment trusts Retail client assets increased to Y72.3tn ($885 bn) on Y2.1tn ($25.7 bn) of net asset inflows and improved market conditions Net Revenue and Income Before Income Taxes Total sales (JPY t
Slide 9: Asset Management
Asset Management Maintained the dominant position in our home market Assets under management increased Y800bn ($9.8 bn), primarily from fund inflows into investment trusts Net Revenue and Income Before Income Taxes Assets Under Management (JPY bn) (JPY tn) 24.1 FYE2010 FYE2011 (USD Bn) ($295bn)
Slide 10: Wholesale
Wholesale Strong revenue, up 5% QoQ, on higher Investment Banking and Equities, with solid Fixed Income results Consecutive quarters of revenue improvement in challenging global conditions highlights positive momentum of platform build Net Revenue and Income (Loss) Before Income Taxes Gl b l M G
Slide 11: Americas: Investment in Talent Continues to Drive Our Client Franchise
Americas: Investment in Talent Continues to Drive Our Client Franchise Headcount Growth Cumulative New Clients On-boarded Americas Client Revenue 2.4x 15x 15 FYE2010 FYE2011 FYE2010 FYE2011 FYE2010 FYE2011 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Key Points Continued to make
Slide 12: Expense Levels
Expense Levels Non-interest expenses have steadily declined since peaking in FYE2009 and are currently stable despite an increase in headcount numbers, mainly driven by prudent cost management and performance-based compensation Recent increase in PE is in line with increased revenues and we are
Slide 13: Funding Profile
1 Overview 2 Summary of Third Quarter Ended December 2010 3 Funding Profile 4 Capital and Risk Management 5 Appendix
Slide 14: Funding Profile
Funding Profile In the first half of FYE’11, the firm took advantage of stable Asian markets and raised approximately JPY 0.9tn long-term funds In 3Q, the firm raised approximately JPY 350bn long-term funds including dated-subordinated debt totalling JPY 153bn in Japan, having completed fund rai
Slide 15: Funding Profile (Cont'd)
Funding Profile (Cont (Cont’d) d) Diversification is a key element of Nomura’s funding strategy—diversification across investors, currencies, structures and product types. Although much of our funding is conducted in Japan, we have successfully completed issuances in USD, EUR, and GBP in the last
Slide 16: Capital and Risk Management
1 Overview 2 Summary of Third Quarter Ended December 2010 3 Funding Profile 4 Capital and Risk Management 5 Appendix
Slide 17: Capital and Leverage
Capital and Leverage Best-in-class capital levels, with Tier 1 ratio of 17.3% and Total Capital Ratio of 24.9% under Basel 2 as of December 20101 Tier 1 capital is comprised of almost all common equity, no hybrids Balance sheet gross leverage remained at prudent levels at 16.2x, 16 2x net leve
Slide 18: Dynamic Risk Management
Dynamic Risk Management Continued to manage risk prudently, while appropriately allocating resources to meet client needs 3Q results contained no material adverse impacts from either the EMEA sovereign recurrence or Treasury sell-off Economic capital has been allocated more towards Global Mark
Slide 19: Active Management of Level 3 Assets
Active Management of Level 3 Assets Level 3 Assets vs. Tier 1 Capital (%)1 Breakdown of Level 3 Assets (September 2010)1,2 Gross Level III Assets Level III derivatives Liabilities Net Level III Assets (Net of Derivatives Liabilities) to Tier 1 Capital (%) (RHS) Target: Maintain Level III assets 155%
Slide 20: Balance Sheet and Liquidity Risk Management
Balance Sheet and Liquidity Risk Management Almost 90% of assets are comprised of cash, trading assets and secured transactions – and have high turnover Long-term capital (mainly long-term borrowing / debt and equity) adequately covers less liquid assets (e.g. investment securities, private equi
Slide 21: Appendix
1 Overview 2 Summary of Third Quarter Ended December 2010 3 Funding Profile 4 Capital and Risk Management 5 Appendix
Slide 22: Global Reach
Global Reach Complete global footprint Americas Europe & Middle East Asia-Pacific Asia Pacific 2,275 employees in 3 countries with 4,427 employees in 18 countries 20,513 employees in 12 countries presence in: with presence in: with presence in: North America: Europe: Asia ex-Japan: – Atlanta –
Slide 23: Business Segment Revenue Trend
Business Segment Revenue Trend The Retail provides stable revenues each quarter as clients look to Nomura to provide advice and investment options Asset Management revenues have steadily trended higher over the past several quarters as our position in the public investment trust market continues
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen December 31, March 31, Millions of yen Increase/(Decrease) December 31, March 31, 2010 2010 Increase/(Decrease) 2010 2010 ASSETS LIABILITIES AND EQ UITY Cash and cash deposits: Short-term borrowings 1,002,591 1,301,664 (299,073) 1,043,487 1,020,647 22,840 P
Slide 25: Consolidated Income
Consolidated Income FY2010.3 FY2011.3 (billions of yen) FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 3Q 4Q 1Q 2Q 3Q Revenue Commissions 356.3 337.5 404.7 306.8 395.1 101.0 96.6 118.1 83.5 100.0 Fees from investment banking 108.8 99.3 85.1 55.0 121.3 44.5 31.4 20.4 24.9 34.0 Asset management and port
Slide 26: Credit Ratings
Credit Ratings Rating and Japan Credit Rating S&P Moody's Investment As of 2 February 2011 Agency Information As of 17 June 2010 Nomura Holdings, Inc. Long term Long-term BBB+ Baa2 A+ AA- AA Short-term A-2 - a-1 - Outlook Stable Stable Stable Stable Nomura Securities Co., Ltd. Long-term A- Baa1 A+ A
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