Nomura Holdings, Inc. · TSE:8604

Nomura — Q2 FY2014/15 Earnings Presentation

35 slides from Nomura's earnings presentation, October 2014

  1. Slide 1: Consolidated Results of Operations, Second Quarter FY2014/15

    Connecting Markets East & West Consolidated Results of Operations S Second d quarter, t year ending di March M h 2015 (US GAAP) Nomura Holdings, Inc. October 2014 © Nomura

  2. Slide 2: Outline

    Outline P Presentation t ti Fi Financial i l Supplement S l t z Executive summary (p. 2) z Consolidated balance sheet (p. 16) z Overview of results (p. 3) z Value at risk (p. 17) z Business segment results (p. 4) z Consolidated financial highlights (p. 18) z Retail (p. 5-6) z Consolidated income (p.

  3. Slide 3: Executive summary

    Executive summary Hi hli ht Highlights I Income before b f income i taxes t FY2014/15 1H Group (billions of yen) „ Second best first-half net income in 10 years: Slowdown from FY2013/14 1H 113.2 – Net revenue: Y744.7bn; Income before income taxes: Y125.7bn; Net income1: Y72.7bn; ROE2: 5.7%; EPS3: Y1

  4. Slide 4: Overview of results

    Overview of results Hi hli ht Highlights (billions of yen, except EPS and ROE) FY2014/15 FY2014/15 QoQ YoY YoY 2Q 1H Net revenue 373.8 +1% +5% 744.7 -5% Non-interest expenses 299.8 -6% +6% 619.0 +3% Income before income taxes 74 0 74.0 +43% +1% 125 7 125.7 -32% Net income1 52.9 +166% +39% 72.7 -30%

  5. Slide 5: Business segment results

    Business segment results N t revenue and Net d income i before b f income i taxes t FY2014/15 FY2014/15 QoQ YoY YoY 2Q 1H Net Retail 117.9 +10% -1% 224.8 -21% revenue Asset Management 21.7 -7% +16% 45.0 +16% Wholesale 190.6 +1% +4% 379.5 +0.4% Subtotal 330.2 +3% +3% 649.3 -8% Other 1) 41 0 41.0 -15%

  6. Slide 6: Retail

    Retail N t revenue and Net d income i before b f income i taxes t K points Key i t (billions of yen) „ Net revenue: Y117.9bn (+10% QoQ; -1% YoY) FY2013/14 FY2014/15 „ Income before income taxes: Y38.9bn (+23% QoQ; -3% YoY) QoQ YoY 2Q 3Q 4Q 1Q 2Q „ Net revenue and income before income taxes both up Q

  7. Slide 7: Retail: Initiatives to grow client assets delivering results

    Retail: Initiatives to grow client assets delivering results Di Discretionary ti investment i t t nett inflows i fl 1 (billions of yen) „ Continued focus on transforming business model 100.0 95.1 „ Renewed push to provide solutions that meet each client’s individual needs 80.9 78.1 through financial

  8. Slide 8: Asset Management

    Asset Management N t revenue and Net d income i before b f income i taxes t K points Key i t (billions of yen) „ Net revenue: Y21.7bn (-7% QoQ; +16% YoY) FY2013/14 FY2014/15 „ Income before income taxes: Y7.8bn (-6% QoQ; +27% YoY) QoQ YoY − Assets under management at record high on inflows into inve

  9. Slide 9: Asset Management: Solid inflows into investment trusts

    Asset Management: Solid inflows into investment trusts Nomura Asset Management public investment trust market Assets under management (gross)1 by business share2 (trillions of yen) Investment trust business Investment advisory business 26.0% 50.0 42.7 40.3 40.6 23.6% 37.3 38.2 24.0% 22.9% 23.1% 40.0

  10. Slide 10: Wholesale

    Wholesale N t revenue and Net d income i before b f income i taxes t K points Key i t (billions of yen) FY2013/14 FY2014/15 „ Net revenue: Y190.6bn (+1% QoQ; +4% YoY) QoQ YoY „ Income before income taxes: Y22.2bn (3.9x QoQ; -12% YoY) 2Q 3Q 4Q 1Q 2Q G Global Markets 159.6 158.0 166.8 166.6 168.1 +1%

  11. Slide 11: Wholesale: Global Markets

    Wholesale: Global Markets N t revenue Net FY2014/15 2Q nett revenue b by region i (billions of yen) Equities +1% YoY QoQ Fixed Income QoQ 166.8 166.6 168.1 Global Markets 159.6 158.0 Global +5% 5% YoY Markets Fixed Income Equities 59.0 62.0 64.0 65.8 58.8 Americas 93 8 93.8 99.2 107.7 104.5 104.1 EM

  12. Slide 12: Wholesale: Investment Banking

    Wholesale: Investment Banking N t revenue Net M&A d i M&A-driven business b i growth th Investment Banking (gross) (billions of yen) „ Won many mandates including Japan-related M&A 45.8 35.9 55.4 43.2 40.7 9 #1 on Japan-AEJ cross-border M&A league table1 (market share: 34.8%) Investment Banking (net

  13. Slide 13: Non-interest expenses

    Non-interest expenses F ll year Full Q Quarter t K points Key i t (billions of yen (billions of yen) Other „ Non-interest expenses: Y299.8bn (-6% QoQ) 1,575.9 Business 400 development 1,500 – Compensation and benefits declined expenses Occupancy and 1,195.5 319.2 1,200 292.5 301.4 299.8 significantl

  14. Slide 14: Robust financial position

    Robust financial position B l Balance sheet h t related l t d iindicators di t and d capital it l ratios ti Ri k weighted Risk t 3 and i ht d assets d Tier Ti 1 ratio ti (trillions of yen) RWA (Basel 3) (lhs) Tier 1 ratio (Basel 3) (rhs) Mar Jun Sep 20.0 20.0% „ Total assets Y43.5trn Y43.9trn Y43.8t

  15. Slide 15: Funding and liquidity

    Funding and liquidity Balance sheet (As of Sep 2014) Balance sheet structure Highly liquid, healthy balance sheet Assets Liabilities and equity „ Unsecured funding2 structure – 83% of assets are highly liquid „ More than 80% of unsecured funding is trading and related assets that are long-term debt

  16. Slide 16: Financial Supplement

    Financial Supplement

  17. Slide 17: Consolidated balance sheet

    Consolidated balance sheet (billions of yen) Mar 31, Sep 30, Increase Mar 31, Sep 30, Increase 2014 2014 (Decrease) 2014 2014 (Decrease) A Assets t Li biliti Liabilities Total cash and cash deposits 2,189 2,070 -119 Short-term borrowings 602 609 7 Total payables and deposits 2,837 2,955 118 Total lo

  18. Slide 18: Value at risk

    Value at risk „ Definition „ From April 1, 1 2014 to September 30, 30 2014 (billions of yen) − 99% confidence level − Maximum: 9.8 − 1-day time horizon for outstanding portfolio − Minimum: 4.5 − Inter-product price fluctuations considered − Average: 6.9 (billions of yen) FY2012/13 FY2013/14 FY2013/1

  19. Slide 19: Consolidated financial highlights

    Consolidated financial highlights Full year Quarter ((billions of yyen)) ((billions of yyen)) 8.9% 8.9% 8.9% 250 9% 100 8.5% 9% 213.6 Net income attributable 200 80 to NHI 5.7% 6% 61.3 6% shareholders 150 9% 4.9% 60 48.3 52.9 ROE(%) 107.2 100 38.1 40 3% 3.2% 3% 50 19.9 0 20 0 0% 0 0% FY2013/14 FY201

  20. Slide 20: Consolidated income

    Consolidated income F ll year Full Q Quarter t FY2013/14 FY2014/15 (billions of yen) FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Revenue Commissions 359.1 474.6 105.6 121.4 89.9 96.3 112.1 Fees from investment banking 62.4 91.3 23.0 15.8 27.2 19.8 20.6 Asset management and portfolio service fees 141.0 167.2

  21. Slide 21: Main revenue items

    Main revenue items F ll year Full Q Quarter t FY2013/14 FY2014/15 (billions of yen) FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q St k brokerage Stock b k commissions i i ((retail) t il) 51 8 51.8 126 7 126.7 25 4 25.4 36 3 36.3 22 6 22.6 15 8 15.8 21 9 21.9 Stock brokerage commissions (other) 112.9 139.8 31.6

  22. Slide 22: Income before income taxes by segment and region

    Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Retail 100.6 192.0 40.0 47.7 23.3 31.6 38

  23. Slide 23: Segment “Other”

    Segment “Other” Income (loss) before income taxes F ll year Full Q Quarter t (billions of yen) (billions of yen) 40 40 34.2 20.0 20 20 66 6.6 2.6 2.5 0 0 -3.5 -3.7 -20 -20 FY2013/14 FY2014/15 FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Net gain (loss) related to economic 1.0 17.4 -1.7 1.7 5.2 6.5 6.9 2.2 hed

  24. Slide 24: Retail related data (1)

    Retail related data (1) Full year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 QoQ YoY 2Q 3Q 4Q 1Q 2Q C Commissions i i 225 9 225.9 301 7 301.7 66 5 66.5 78 3 78.3 46 5 46.5 56 1 56.1 68 8 68.8 22 7% 22.7% 3 5% 3.5% Sales credit 80.9 106.1 24.3 25.7 26.4 25.0 25.9 3.6% 6.9% Fees

  25. Slide 25: Retail related data (2)

    Retail related data (2) Stock brokerage commissions and commissions for distribution of investment trusts F ll year Full Q Quarter t (billions of yen) (billions of yen) 180 40 150 Stock brokerage 30 commissions 120 Commissions f or distribution of investment 90 20 trusts 60 10 30 0 0 FY2013/14 FY201

  26. Slide 26: Retail related data (3)

    Retail related data (3) Retail client assets (trillions of yen) 99.3 100 96.0 95.3 91.7 90.9 91.7 Other 83 8 83.8 Overseas mutual f unds 80 Bond investment trusts 60 Stock investment trusts 40 Domestic bonds Foreign currency bonds 20 Equities 0 FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Sep Dec

  27. Slide 27: Retail related data (4)

    Retail related data (4) Net inflows of cash and securities1 F ll year Full Q Quarter t (billions of yen) (billions of yen) 1,500 1,000 805 1,076 473 485 1,000 500 145 500 0 385 -366 0 -500 FY2013/14 FY2014/15 FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q (1) Cash and securities inflows minus outflows, excludin

  28. Slide 28: Retail related data (5)

    Retail related data (5) N b off accounts Number t (Thousands) FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Sep Dec Mar Jun Sep Accounts with balance 5,025 5,144 5,090 5,104 5,144 5,186 5,211 Equity holding accounts 2,717 2,718 2,722 2,674 2,718 2,721 2,720 Nomura Home Trade / 3,747 4,012 3,881 3,

  29. Slide 29: Asset Management related data (1)

    Asset Management related data (1) Full year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 QoQ YoY 2Q 3Q 4Q 1Q 2Q Net revenue 68.9 80.5 18.6 21.2 20.5 23.3 21.7 -7.1% 16.5% Non-interest Non interest expenses 47 8 47.8 53 4 53.4 12 5 12.5 12 3 12.3 15 1 15.1 15 1 15.1 13 9 13.9 -7

  30. Slide 30: Asset Management related data (2)

    Asset Management related data (2) Assets under management (gross) by business¹ Asset inflows/outflows by business3 Full year Quarter (trillions of yen) FY12/13 FY13/14 FY13/14 FY14/15 FY FY FY2013/14 FY2014/15 (billions of yen) Mar Mar Sep Dec Mar Jun Sep 12/13 13/14 2Q 3Q 4Q 1Q 2Q Investment trust

  31. Slide 31: Wholesale related data (1)

    Wholesale related data (1) Wh l Wholesale l Full year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 QoQ YoY 2Q 3Q 4Q 1Q 2Q Net revenue 644.9 765.1 183.3 188.7 198.5 188.9 190.6 0.9% 3.9% Non-interest expenses 573.2 653.3 158.1 160.9 165.0 183.1 168.4 -8.1% 6.5% Income before inco

  32. Slide 32: Wholesale related data (2)

    Wholesale related data (2) Private equity related investments (billi (billions off yen)) 150 Terra Firma 104 6 104.6 102.1 100 Asia Europe (excluding Terra 61.2 57.2 57.2 58.8 58.6 Firma) Japan 50 0 FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Sep Dec Mar Jun Sep Japan 52.7 8.1 51.7 10.5 8.1 10.8

  33. Slide 33: Number of employees

    Number of employees FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Sep Dec Mar Jun Sep Japan (excluding FA) 14,123 14,149 14,454 14,308 14,149 14,559 14,391 Japan (FA) 1,907 1,888 1,923 1,918 1,888 1,889 1,853 Europe 3,618 3,461 3,459 3,456 3,461 3,481 3,530 Americas 2,271 2,281 2,243 2,248 2,281 2

  34. Slide 34: 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

  35. Slide 35: Nomura Holdings, Inc.

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

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