Nomura Holdings, Inc. · TSE:8604

Nomura — Conference Presentation (May 2003)

23 slides from Nomura's conference presentation, May 29, 2003

  1. Slide 1: Japan at the Crossroads of Economic Revival and the Role of Nomura Group

    Japan at the Crossroads of Economic Revival and the Role of Nomura Group Junichi Ujiie Chairman Nomura Holdings, Inc. May 29, 2003 1.This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2003 Nomura Holdings, Inc. All rights reserved. 2.Nothing in this document shall be considered

  2. Slide 2: Outline of Presentation

    Outline of Presentation I Japan at the Crossroads of Economic Revival ¾ Action by the Government ¾ Acceleration of Corporate Restructuring ¾ Shift of Individual Financial Assets II The Role of Nomura Group for Economic Revival ¾ Strengthening Financial Ties between Corporates & Individuals ¾ Providi

  3. Slide 3: I Japan at the Crossroads of Economic Revival

    I Japan at the Crossroads of Economic Revival ¾ Action by the Government ¾ Acceleration of Corporate Restructuring ¾ Shift of Individual Financial Assets I will discuss Japan at the crossroads of economic revival covering three topics: action by government, acceleration of corporate restructuring, a

  4. Slide 4: Action by the Government

    I Japan at the Crossroads of Economic Revival Action by the Government Acceleration of Program Disposal of NPLs* Program for Financial for Industrial Revival Revitalization Troubled Companies Sorting & Selection Financial Revival of Japanese Industrial Revival Economy Revival *NPL: Non-performing lo

  5. Slide 5: Acceleration of Corporate Restructuring (1)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (1) (No. of transactions) M&A 2,000 1,800 Group Restructuring 1,600 Strengthening Existing Business 1,400 1,200 Entering New Markets 1,000 800 600 400 200 0 95 96 97 98 99 00 01 02 (CY) Note: Calculated on a calend

  6. Slide 6: Acceleration of Corporate Restructuring (2)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (2) Cross Shareholdings Ratios 33% 35% 30% Cross Shareholdings Ratio 25% 20% Individuals’ Shareholdings Ratio 15% 17% 10% 5% Foreigners’ Shareholdings Ratio 0% 90 91 92 93 94 95 96 97 98 99 00 01 (FY end) Note: The

  7. Slide 7: Acceleration of Corporate Restructuring (3)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (3) Increasing Share Buybacks (Trillions of yen) 10 Equity Issuance* 9 8 Share Buybacks 7 6 5 4 3 2 1 0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 (FY) Note: The purpose of share buybacks

  8. Slide 8: Acceleration of Corporate Restructuring (4)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (4) Transition of Nominal Wages in Japan 105 100 100 95.5 95 90 85 80 90 91 92 93 94 95 96 97 98 99 00 01 02 03 (CY) Note:Companies larger than 30 employees targeted, 12-month moving average Source: Nomura, based o

  9. Slide 9: Acceleration of Corporate Restructuring (5)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (5) Increase in Rehabilitation-type Bankruptcy Procedures (No.) 1,000 Civil Reorganization Law* 900 800 Composition Law 700 Corporate Rehabilitation Law 600 500 400 300 200 100 0 90 91 92 93 94 95 96 97 98 99 00 01

  10. Slide 10: Acceleration of Corporate Restructuring (6)

    I Japan at the Crossroads of Economic Revival Acceleration of Corporate Restructuring (6) D/E Ratio & ROE (NOMURA 400, excluding financials) 200 180 D/E ratio (%) 160 140 122% 120 14 12 ROE (%) 10 7.3% 8 6 4 2 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 (FY) 80 81 82 83 84 85 86 87 88 89 90 Source:

  11. Slide 11: Shift of Individual Financial Assets (1)

    I Japan at the Crossroads of Economic Revival Shift of Individual Financial Assets (1) Breakdown of Individual Financial Assets (2002) Japan US Investment Trusts 2% Mutual Funds 9% Bonds 2% Total 10% Bonds 8% Total 48% Equity 6% Equity 31% Cash & Deposits 56% Cash & Deposits 17% Insurance & Pensions

  12. Slide 12: Shift of Individual Financial Assets (2)

    I Japan at the Crossroads of Economic Revival Shift of Individual Financial Assets (2) Change in Deposit Balance by Type (YOY) 35% Lifting of Government 30% Guarantee on 25% Term Deposits 20% 15% Demand Deposits 10% 5% 0% -5% Term Deposits -10% 99 00 01 02 (CY) Source: Nomura Securities Financial Re

  13. Slide 13: Shift of Individual Financial Assets (3)

    I Japan at the Crossroads of Economic Revival Shift of Individual Financial Assets (3) Investment in Foreign Assets by Individuals* (Trillions of yen) 16 Trillion yen 18 (Yen/US$) Yen-US$ (RHS) 160 16 150 14 140 12 130 120 10 110 8 100 6 90 4 80 2 70 0 60 98 99 00 01 02 (CY) * Total foreign currency

  14. Slide 14: Shift of Individual Financial Assets (4)

    I Japan at the Crossroads of Economic Revival Shift of Individual Financial Assets (4) FY2003 Tax Reform Related to Stock Transactions Jan 2003 Jan 2008 Capital gains 26% 10% 20% on listed stocks, etc. (A) (B) (B) Apr 2003 Apr 2008 Dividends MAX 50% 10% 20% of (C) (D) (D) listed stocks, etc. Interes

  15. Slide 15: II The Role of Nomura Group for Economic Revival

    II The Role of Nomura Group for Economic Revival ¾ Strengthening Financial Ties between Corporates & Individuals ¾ Providing Solutions via Capital Markets ¾ Diverse Product Supply Let us now move to the topic regarding Nomura’s role in Japan’s revival. 15

  16. Slide 16: Strengthening Financial Ties between Corporates & Individuals

    II The Role of Nomura Group for Economic Revival Strengthening Financial Ties between Corporates & Individuals Acceleration Shift of of Corporate Individual Restructuring Financial Assets Provide Solutions via Supply Diverse Capital Markets Products 16 As you can see from this slide, we aim to contr

  17. Slide 17: Providing Solutions via Capital Markets (1)

    II The Role of Nomura Group for Economic Revival Providing Solutions via Capital Markets (1) Corporate Corporate Revival Revival M&A Advisory Financial Financial Advisory Advisory Cross Cross Border Border M&A M&A „ Niigata Engineering „ Wal-Mart = Seiyu „ Publicis / Bcom3 = Dentsu „ First Credit Pr

  18. Slide 18: Providing Solutions via Capital Markets (2)

    II The Role of Nomura Group for Economic Revival Providing Solutions via Capital Markets (2) Initial Public Offering (IPO) IPO Share „ Daido Life 49% Public Offering (PO) „ JR East „ MTFG PO Share Securitization 44% „ Shinsei Bank „ Nippon Life Source: Nomura Securities (FY ended March 2003) 18 On t

  19. Slide 19: Diverse Product Supply (1)

    II The Role of Nomura Group for Economic Revival Diverse Product Supply (1) Distribution Volume of Foreign Currency Bonds for Retail Investors (Billions of yen) 1,600 Foreign Issuers 1,353 1,400 „ EIB 1,200 „ FHLMC „ IADB etc. 1,000 925 931 800 600 429 400 194 179 200 0 00 01 02 (FY) 19 As shown bef

  20. Slide 20: Diverse Product Supply (2)

    II The Role of Nomura Group for Economic Revival Diverse Product Supply (2) Stock Holdings Accounts Outstanding Value of Variable Annuity Insurance Contracts (Thousands) (Billions of yen) 1,400 180 167 1,302 1,300 160 1,200 140 1,100 120 1,000 100 900 80 800 60 700 40 600 20 500 0 00 01 02 01 02 (FY

  21. Slide 21: Diverse Product Supply (3)

    II The Role of Nomura Group for Economic Revival Diverse Product Supply (3) Nomura Asset Management’ Management’s Share Total Total Public Public Investment Investment Trusts Trusts 30% 10.4 trillion yen Bond- Bond-type Investment Bond-type Investment Trusts Trusts Equity- Equity-type Investment Equ

  22. Slide 22: Diverse Product Supply (4)

    II The Role of Nomura Group for Economic Revival Diverse Product Supply (4) Revenue Structure by Product (approx.) 100% 3% Variable Annuity 14% 90% 24% 14% Investment Trusts 30% 80% (administration fees) 15% Investment Trusts 24% 70% 13% (distribution commission) 16% Equities 60% 28% 50% Bonds 35% 4

  23. Slide 23: Nomura Holdings, Inc.

    Nomura Holdings, Inc. www.nomura www.nomura.com .com In conclusion, as commercial and industrial bank systems in Japan have problems with their business models, for instance, low returns, non-performing loans, and cross shareholdings, Nomura’s role for Japan’s revival is crucially important for both

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