Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (April 2013)
25 slides from Nomura's debt investor presentation, April 2013
Slide 1: Creditor Presentation
Creditor Presentation Fourth Quarter, Fiscal Year Ended March 2013 Nomura Holdings, Inc. April 2013 © Nomura
Slide 2: Disclaimer
Disclaimer This document is produced by Nomura Holdings, Inc. (“Nomura”). 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 Nomura or any affiliate thereof. Offers to sel
Slide 3: Table of Contents
Table of Contents Executive Summary Overview of Results Retail, Asset Management, Wholesale Progress of Cost Reduction Program Non-Interest Expenses Balance Sheet Management Level3 Asset, Private Equity Investments/Investments in Equity Securities Financial Position Changes to Shar
Slide 4: Executive Summary
Executive Summary FYE 2013 Fourth Quarter Significant QoQ increase in revenue and income: Both income before income taxes and net income1 at highest level since FYE2006 4Q Robust Retail performance and one-off gain on secondary offering of Nomura Real Estate Holdings(“NREH”) shares (Y50.1bn) con
Slide 5: Overview of Results
Overview of Results Quarter Full Year Key Points Fourth Quarter Results FYE FYE (JPY bn) Income before income taxes from three business 2012 2013 FYE FYE (USD bn) QoQ YoY YoY segments totaled Y96.8bn (+35% QoQ), representing 2012 2013 strongest quarter since FYE2008 1Q 4Q 1Q 2Q 3Q 4Q Retail 653.
Slide 6: Retail
Retail Net Revenue and Income Before Income Taxes Key Points Quarter Full Year Fourth Quarter Results Net revenue and income before income taxes increased markedly QoQ; FYE FYE2013 FYE FYE Income before income taxes at highest level since FYE2006 3Q (JPY bn) 2012 QoQ YoY YoY (USD bn) 2012 2013 – T
Slide 7: Asset Management
Asset Management Net Revenue and Income Before Income Taxes Key Points Quarter Full Year Fourth Quarter Results (JPY bn) Revenues in line with last quarter which included revenues from performance fees (USD bn) FYE and dividends; Assets under management increased by 10% QoQ FYE2013 FYE FYE Incom
Slide 8: Wholesale
Wholesale Net Revenue and Income (Loss) Before Income Taxes1 Key Points Quarter Full Year Fourth Quarter Results (JPY bn) Net revenue at highest level since FYE2010 3Q; Japan revenues jumped significantly (USD bn) Higher costs as a result of one-off expenses of Y6bn related to cost reduction FYE
Slide 9: Progress of Cost Reduction Program
Progress of Cost Reduction Program Timeline of $1bn Cost Reduction Program Progress to Mar 2013 Announced in Sep 2012: $1bn FYE2013 FYE2013 FYE2014 2Q 2H Additional $1bn cost reductions 78% complete as Japan of end of March 18% Wholesale: Personnel expenses – Personnel expense reductions progressi
Slide 10: Non-Interest Expenses
Non-Interest Expenses Full Year Quarter Key Points (JPY bn) (JPY bn) Other Full year 1,600 1,575.9 Non-interest expenses: Y1,575.9bn Business development 1,450.9 expenses (+9% YoY) 483.9 500 Occupancy and related 438.2 – Increase is due to an adjustment depreciation 1,200 (1) 400 related to the co
Slide 11: (Reference) Non-Interest Expenses (excl. NREH)
(Reference) Non-Interest Expenses (excl. NREH) Full Year Quarter Non-interest expenses roughly flat YoY (+2%) Non-interest expenses increased 11% QoQ Higher costs in international business due to yen depreciation Compensation and benefits Increase in one-off expenses – Booked one-off expen
Slide 12: Balance Sheet Management
Balance Sheet Management Balance Sheet Composition Funding Profile Balance Sheet Highly Liquid, Healthy Balance Sheet (March 2013) Conservative Funding Profile – 82% of assets are highly liquid trading Assets Liabilities / Equity – Approx. 80% of unsecured funding3 is and related assets that are
Slide 13: Level3 Asset, Private Equity Investments/Investments in Equity Securities
Level3 Asset, Private Equity Investments/Investments in Equity Securities We will continue to control Level 3 assets and less liquid non-trading assets such as private equity, investments in equity securities at manageable levels Level 3 Assets1 Private Equity Investments / Investments in Equity S
Slide 14: Financial Position
Financial Position Balance Sheet Related Indicators and Capital Ratios RWA and Tier 1 Capital Ratio RWA(Basel2 basis)(lhs) RWA(Basel2.5 basis)(lhs) (JPY bn) (JPY bn) (USD bn) (JPY bn) RWA(Basel3 basis)(lhs) Tier1 Ratio(rhs) Dec 31, 20121 Mar 31, 20131 Mar 31, 20131 20 17.3% 20% 16.4% 16.9% (Basel 2.
Slide 15: Changes to Shareholders' Equity (Tier 1) and Risk-Weighted Assets
Changes to Shareholders‟ Equity (Tier 1) and Risk-Weighted Assets (Reference) Fully loaded Basel 3 2019 Dec 2012 vs. Mar 2013 (Preliminary) applied to balance sheet at end of March Tier 1 ratio 16.9% 18.8% 11.7% Approx. 10% Tier 1 common 14.9% 18.8% 11.7% Approx. 10% ratio Tier 1 2,174 -225 2,094 2,
Slide 16: Liquidity Profile
Liquidity Profile Liquidity Portfolio1: JPY5.9tn($62bn), 16% of Total Assets Firm-Wide Liquidity Management Liquidity Portfolio (USD bn) LP/Total Assets Liquidity Stress Test ~ Quantify Liquidity Risk Tolerance 15% 16% 16% 15% 15% 15% 14% – The firm carries out its liquidity stress test daily in o
Slide 17: Funding Profile
Funding Profile Maintaining both a diversified and less-credit-sensitive unsecured funding structure allowing us the ability to withstand changes in lending climate Maturities of long-term debt are staggered and the weighted average life of the firm‟s long-term debt3 is over 5 years We will co
Slide 18: Appendix
NOMURA Appendix
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet 18
Slide 20: Consolidated Income
Consolidated Income Full Year Quarter (JPY bn) FYE2012 FYE2013 FYE2012 FYE2013 4Q 1Q 2Q 3Q 4Q Revenue Commissions 347.1 359.1 90.4 77.4 72.3 83.7 125.7 Fees from investment banking 59.6 62.4 14.8 10.4 17.1 13.0 21.8 Asset management and portfolio service fees 144.3 141.0 35.1 33.8 33.4 35.0 38.8 Net
Slide 21: Segment "Other"
Segment “Other” Income (loss) before income taxes Full Year Quarter (JPY bn) (JPY bn) 60 60 50.1 40 35.2 40 20 14.6 17.0 20 6.6 7.3 0 0 -20 -20 -40 -40 -60 -60 -67.9 -80 -80 FYE2012 FYE2013 FYE2012 FYE2013 4Q 1Q 2Q 3Q 4Q Net gain (loss) related to economic 8.4 1.0 -2.1 -1.2 1.0 0.4 0.8 hedging trans
Slide 22: Value at Risk
Value at Risk Definition From April 1, 2012 to March 29, 2013 (billions of yen) 99% confidence level Maximum: 8.7 1-day time horizon for outstanding portfolio Minimum: 4.3 Inter-product price fluctuations considered Average: 6.1 (billions of yen) (billions of yen) Mar 31, Jun. 30, Se
Slide 23: Exposure to European Peripheral Countries
Exposure to European Peripheral Countries GIIPS Country Exposure (Preliminary, as of Mar 31, 2013) (US$m) Changes Net exposure Net inventory 1 Net counter party 2 from Dec Peripheral net country exposure of $918m total 2012 as of end of March Of which, Counter Total party 2 reserve / Total Decli
Slide 24: Number of Employees
Number of Employees Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013 Japan (excluding FA)1 19,598 20,197 20,039 19,877 14,123 Japan (FA) 2,011 2,014 1,981 1,951 1,907 Europe 4,014 3,975 3,940 3,747 3,618 Americas 2,420 2,423 2,425 2,316 2,271 Asia-Pacific2 6,352 6,454 6,430 6,20
Slide 25: Credit Ratings
Credit Ratings Standard & Moody‟s Rating and Japan Credit As of March 31, 2013 Poor‟s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa3 A+ AA- Short-term A-2 - a-1 - Outlook stable stable negative stable Nomura Securities Co., Ltd. Long-term A- Baa2 A+ AA- Short-term A-2
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