Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (February 2012)

21 slides from Nomura's debt investor presentation, February 2012

1. Slide 1: Creditor Presentation

   Creditor Presentation Third Quarter, Fiscal Year Ending March 2012 February 2012 © Nomura

2. Slide 2: Disclaimer

   Disclaimer  This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2012 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 securitie

3. Slide 3: Table of Contents

   Table of Contents  Executive Summary  Overview of Results  Retail, Asset Management, Wholesale  Non-Interest Expenses, Progress of Cost Reduction Program  Capital, Risk Management, Funding and Liquidity Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calcula

4. Slide 4: Executive Summary

   Executive Summary  Revenues and income up QoQ; All business divisions profitable at pretax level  Retail and Asset Management resilient amid challenging conditions Improved Performance in 3Q  Wholesale revenues increased significantly in all regions and businesses  Implementing $1.2bn cost reduc

5. Slide 5: Overview – Third Quarter Results

   Overview – Third Quarter Results Quarter Fiscal Year to Date Key Points FYE2011 FYE2012 (JPY bn) FYE2012  3Q net revenue: Y404.9bn (+34% QoQ; +37% YoY), income QoQ YoY YoY before income taxes: Y34.5bn, and net income3: Y17.8bn (USD bn) 3Q 1Q – 3Q 3Q 4Q 1Q 2Q 3Q (USD) Net revenue  Retail 295.9 299.

6. Slide 6: Retail

   Retail Net Revenue and Income Before Income Taxes Key Points  Revenues down marginally amid challenging market conditions – Provided consulting services as retail investor risk appetite weakened FYE2011 FYE2012 – Income declined only slightly QoQ due to rigorous cost control (JPY bn) QoQ YoY  Seve

7. Slide 7: Asset Management

   Asset Management Net Revenue and Income Before Income Taxes 1 Key Points FYE2011 FYE2012  Assets under management declined slightly QoQ (JPY bn) QoQ YoY (USD bn) 3Q  Contained costs to ensure stable profitability 3Q 4Q 1Q 2Q 3Q (USD)  Offered public stock investment trusts (excl. ETFs) products m

8. Slide 8: Wholesale

   Wholesale Net Revenue and Income (Loss) Before Income Taxes Key Points  Revenues in all regions and business lines increased significantly QoQ – Client-driven strategy continued to gain traction through close FYE2011 FYE2012 alignment of services to client needs in each region and business (JPY bn)

9. Slide 9: Wholesale: Global Markets

   Wholesale: Global Markets Net Revenue and Income (Loss) Before Income Taxes Key Points Fixed Income FYE2011 FYE2012  Net revenue: +56% QoQ (JPY bn) (USD bn) QoQ YoY  Strong performance amidst continued market stress, with most products 3Q posting quarterly gains 3Q 4Q 1Q 2Q 3Q (USD) – Internationa

10. Slide 10: Wholesale: Investment Banking

    Wholesale: Investment Banking Net Revenue and Income (Loss) Before Income Taxes Key Points  Significant revenue increase on a quarterly basis – Revenue growth driven by both Japan and the International FYE2011 FYE2012 business (JPY bn) (USD bn) QoQ YoY 3Q – Globally focused on traditional as well a

11. Slide 11: Non-Interest Expenses

    Non-Interest Expenses Full Year Quarter 3 Segments Other (billions of yen) (billions of yen) (billions of yen) 1,200 1,092.9 400 Business development 1,045.6 1,037.4 370.5 3 Segments Total Wholesale 346.2 expenses 1,000 Occupancy and related 296.0 300 247.6 246.5 239.7 236.9 161.4 156.9 156.1 152.4

12. Slide 12: Progress of Cost Reduction Program

    Progress of Cost Reduction Program Timeline of $1.2bn cost reduction program Progress to Dec 31, 2011 FY2011/12 3Q FY2011/12 4Q FY2012/13 2H  On schedule Total of $1.2bn Retail, Retail, AM 100%  Retail and Asset Management AM 20% – Reduced SG&A costs and business development expenses Nov 2011 anno

13. Slide 13: Robust Financial Position

    Robust Financial Position Balance Sheet-Related Indicators and Capital Ratios Leverage Ratio1 (x) Gross leverage ratio (JPY) (USD) 22.0 Net leverage ratio 18.9  Total assets Y33.5trn $435bn 17.6 18.1 18.0 16.2 16.2  Shareholders’ equity Y2.1trn $26.8bn  Gross leverage 16.2x 16.2x 14.0 11.6 11.0 1

14. Slide 14: Tier 1 Capital Ratio and Risk-Weighted Assets

    Tier 1 Capital Ratio and Risk-Weighted Assets Sep 2011 vs. Dec 2011 Reference Preliminary Tier 1 ratio 15.8% 12.2% 12.9% Tier 1 common ratio 13.7% 10.5% 11.1% +3,800 -450 -350 RWA Main reason for change: Approx. - Sale of private equity investment (billions of yen) 16,700 - Reduced trading position,

15. Slide 15: Exposure to European Peripheral Countries

    Exposure to European Peripheral Countries GIIPS Country Exposure (as of Dec 31, 2011) (US$m) Net Change Net inventory 1 Net counter party exposure from Sep total 2011 Ireland Total net GIIPS country exposure Of which, Of which, Sep 2011 US$3,554m Of which, exposure exposure Counter reserve / 308 513

16. Slide 16: Funding and Liquidity: Balance Sheet and Debt Structure

    Funding and Liquidity: Balance Sheet and Debt Structure Balance Sheet Composition Long-Term Debt Profile2 Balance Sheet (US$bn) By Region Assets Liabilities and Equity Average Maturity > 6 years (Dec 31, 2011) 33.9 Non Japan 10.0 8.0 19% ～ Trading Liabilities Approx. Prefunded Japan and Related1 54%

17. Slide 17: Funding and Liquidity: Liquidity Portfolio

    Funding and Liquidity: Liquidity Portfolio Ample Liquidity1 Liquidity Portfolio Balance % to Total Assets Liquidity Portfolio Breakdown (Dec 2011) (USD bn） 16% 17% 15% 15% 15% By Currency By Instrument Others others 5% 2% 70 72 70 72 10% 10% Deposit EUR JPY 18% 53 20% 32% 7% GBP 9% Reverse Repo USD

18. Slide 18: Appendix

    NOMURA Appendix

19. Slide 19: Consolidated Balance Sheet

    Consolidated Balance Sheet Millions of yen Millions of yen December 31, March 31, December 31, March 31, Increase/(Decrease) Increase/(Decrease) 2011 2011 2011 2011 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 1,306,820 1,167,077 139,743 Cash and cash equivalents 1,014

20. Slide 20: Consolidated Income

    Consolidated Income Full year Quarter (billions of yen) FY2010/11 FY2011/12 FY2006 FY2007 FY2008 FY2009 FY2010 /07 /08 /09 /10 /11 3Q 4Q 1Q 2Q 3Q Revenue Commissions 337.5 404.7 306.8 395.1 405.5 100.0 103.8 96.8 85.9 74.0 Fees from investment banking 99.3 85.1 55.0 121.3 107.0 34.0 27.8 13.8 13.8 1

21. Slide 21: Credit Ratings

    Credit Ratings Standard & Moody’s 1 Rating and Japan Credit As of Dec 31, 2011 Poor’s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ * Baa2 A+ AA- Short-term A-2 - a-1 - Outlook stable review for stable stable possible downgrade Nomura Securities Co., Ltd. Long-term A- * B

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