Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2015/16 Earnings Presentation
31 slides from Nomura's earnings presentation, October 2015
Slide 1: Consolidated Results of Operations Second quarter, year ending March 2016
Connecting Markets East & West Consolidated Results of Operations Second quarter, year ending March 2016 (US GAAP) Nomura Holdings, Inc. October 2015 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2-3) Consolidated balance sheet (p.20) Overview of results (p. 4) Consolidated income (p. 21) Business segment results (p. 5) Consolidated results: Income (loss) before income taxes by segment and region (p. 22) Retail (p.
Slide 3: Executive summary: FY2015/16 1H highlights
Executive summary Highlights: FY2015/16 1H Income before income taxes: Y125.9bn[$1.1bn] (+0.2% YoY); Net income1: Y115.3bn[$1.0bn] (+59% YoY) Second highest 1H net income since reporting under US GAAP started in FY2001/02 – Net revenue: Y760.6bn[$6.3bn]; Income before income taxes: Y125.9bn[$1.1bn
Slide 4: Executive summary: FY2015/16 2Q highlights
Executive summary Income before income taxes and net Highlights: FY2015/16 2Q income1 Group-wide (billions of yen) Net revenue, income before income taxes, and net income declined at Group level as sudden Income before income taxes 116.1 corrections in equity markets and credit spread widening imp
Slide 5: Overview of results
Overview of results Highlights (billions of yen, except EPS and ROE) FY2015/16 FY2015/16 QoQ YoY YoY 2Q 1H Net revenue 336.6[$2.8bn] -21% -10% 760.6[$6.3bn] +2% Non-interest expenses 316.7[$2.6bn] -0.4% +6% 634.7[$5.3n] +3% Income before income taxes 19.9[$0.2bn] -81% -73% 125.9[$1.1bn] +0.2% Net in
Slide 6: Business segment results
Business segment results Net revenue and income before income taxes (billions of yen) FY2015/16 FY2015/16 QoQ YoY YoY 2Q 1H Net Retail 115.7[$1.0bn] -12% -2% 246.3[$2.1bn] +10% revenue Asset Management 22.9[$0.2bn] -15% +5% 49.8[$0.4bn] +11% Wholesale 192.9[$1.6bn] -6% +1% 398.1[$3.3bn] +5% Subtotal
Slide 7: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y115.7bn [$1.0bn] (-12% QoQ; -2% YoY) Income before income taxes: Y36.7bn [$0.3bn] (-28% QoQ; -5% YoY) FY2014/15 FY2015/16 QoQ YoY Net revenue and income before income taxes both down QoQ; Investors 2Q
Slide 8: Retail: Progress in business model transformation
Retail: Progress in business model transformation Recurring revenue (billions of yen) Conducting client interviews to provide asset panning and life planning 90.0 services – Annualized recurring revenue of Y78.3bn[$0.7bn] as discretionary 78.0 78.3 [$0.7bn] investments expanded on steady net inflo
Slide 9: Asset Management
Asset Management Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y22.9bn[$0.2bn] (-15% QoQ; +5% YoY) FY2014/15 FY2015/16 Income before income taxes: Y8.4bn[$0.1bn] (-28% QoQ; +8% YoY) QoQ YoY 2Q 3Q 4Q 1Q 2Q −Net revenue and income before income taxes both dow
Slide 10: Asset Management: ETF growth
Asset Management: ETF growth Nomura Asset Management public investment trust market Assets under management (net)1 by business share2 (trillions of yen) Investment trust business Investment advisory business 26.0% 50.0 24.9% 41.4 40.0 [$334bn] 24.6% 37.7 39.3 40.0 34.8 24.0% 23.7% 12.8 13.2 [$110bn]
Slide 11: Wholesale
Wholesale Net revenue and income before income taxes Key points (billions of yen) FY2014/15 FY2015/16 Net revenue: Y192.9bn [$1.6bn] (-6% QoQ; +1% YoY) QoQ YoY 2Q 3Q 4Q 1Q 2Q Income before income taxes: Y8.6bn [$0.1bn] (-56% QoQ; -61% YoY) 158.7 Global Markets 168.1 149.7 199.0 176.2 [$1.3bn] -1
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets Net revenue1 FY2015/16 2Q net revenue by region (billions of yen) Equities YoY QoQ 199.0 QoQ Fixed Income 176.2 -10% 168.1 158.7 Global Global Markets 149.7 [$1.3bn] YoY Markets 81.7 Fixed Income Equities -6% 63.7 92.1 74.7 75.5 [$0.6bn] Americas 104.4 117.4 75.0 84.1 83.2
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking Revenue diversification as all regions reported higher revenues Net revenue in FY2015/16 1H Investment Banking (gross) (billions of yen) Investment Banking (gross) 40.7 52.7 57.3 49.7 63.1[$0.5bn] revenue ECM revenues up significantly Investment Banking (net) Other +1
Slide 14: Non-interest expenses
Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen) Non-interest expenses: Y316.7bn[$2.6bn] 400 (-0.4% QoQ) 1,500 Other 329.6 1,257.4 318.0 316.7 – Compensation and benefits (-4% QoQ) 308.9 1,195.5 299.8 1,200 300 Compensation and benefits declined Business dev
Slide 15: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Risk weighted assets3 and Tier 1 ratio Mar 2015 Jun 2015 Sep 2015 (trillions of yen) RWA (Basel 3) (lhs) Tier 1 ratio (Basel 3) (rhs) Total assets Y41.8trn Y44.0trn Y44.0trn $0.4trn 20.0 20.0% 12.7% 12.5% 12.9% 13.5% 13.
Slide 16: Funding and liquidity
Funding and liquidity Balance sheet (As of Sep 2015) Funding Profile Balance sheet structure Assets Liabilities and equity Conservative Funding Profile Highly liquid, healthy balance sheet structure – More than 80% of unsecured funding2 – 80% of assets are highly liquid is long-term debt trading
Slide 17: Debt Profile
Debt Profile Robust structure: More than 80% of long-term debt is comprised of unsecured funding Funding sources are diversified among the following three markets to mitigate refinance risk: Bank Lending Market: Funding mainly from Japanese relationship banks Wholesale Market: Access to the
Slide 18: Liquidity Portfolio
Liquidity Portfolio The firm’s liquidity portfolio1 was approximately JPY6.2 trillion ($51.6bn) as of September 30, 2015 and is measured on the basis of an established liquidity management framework The liquidity portfolio is primarily comprised of highly liquid G4 government bonds, is diversifi
Slide 19: Credit Ratings
Credit Ratings Standard & Moody’s Fitch Rating and Japan Credit As of October 28, 2015 Poor’s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa1 A- A+ AA- Short-term A-2 - F1 a-1 - Outlook Negative Stable Stable stable stable Nomura Securities Co., Ltd. Long-term A- A3 A-
Slide 20: Financial Supplement
Financial Supplement
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet M illions of yen M illions of yen M arch 31, September 30, M arch 31, September 30, Increase/(Decrease) Increase/(Decrease) 2015 2015 2015 2015 AS S ETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 662,256 561,078 (101,178) Cash and cash equivalents
Slide 22: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 2Q 3Q 4Q 1Q 2Q Revenue Commissions 473.1 453.4 110.8 123.2 123.7 130.3 111.5 Fees from investment banking 91.3 95.1 20.6 28.8 25.8 24.5 44.9 Asset management and portfolio service fees 168.7 203.4 49.7 53
Slide 23: 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 FY2014/15 FY2015/16 (billions of yen) FY2013/14 FY2014/15 2Q 3Q 4Q 1Q 2Q Retail 192.0 161.8 38.9 50.5 40.9 50.9 36
Slide 24: Retail related data
Retail related data Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 QoQ YoY 2Q 3Q 4Q 1Q 2Q Commissions 297.2 258.9 66.7 69.8 67.7 73.8 55.8 -24.3% -16.3% Of which, brokerage commission 115.4 81.8 19.8 25.1 22.6 26.4 20.0 -24.1% 1.5% Of which, commissions for distribution
Slide 25: Asset Management related data
Asset Management related data Full year Quarter FY2014/15 FY2015/16 (billions of yen) FY2013/14 FY2014/15 QoQ YoY 2Q 3Q 4Q 1Q 2Q Net revenue 80.5 92.4 21.7 23.4 23.9 26.9 22.9 -15.1% 5.4% Non-interest expenses 53.4 60.3 13.9 14.1 17.2 15.2 14.4 -4.8% 4.0% Income before income taxes 27.1 32.1 7.8 9.3
Slide 26: Wholesale related data
Wholesale related data Wholesale Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 QoQ YoY 2Q 3Q 4Q 1Q 2Q Net revenue 765.1 789.9 190.6 178.9 231.5 205.2 192.9 -6.0% 1.2% Non-interest expenses 653.3 707.7 168.4 178.5 177.7 185.5 184.3 -0.7% 9.5% Income before income taxes 1
Slide 27: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 50.0 46.0 44.8 40.0 30.0 20.0 20.0 14.7 10.0 2.5 0.0 -10.0 -4.0 -20.0 -30.0 -23.0 1 2 1 2 3 4 5 FY2014/15 FY2015/16 FY2013/14 FY2014/15 2Q 3Q 4Q 1Q 2Q Net gain related to economic 17.4 15.1 2.2 6.4 -0.3 -2.6 1.1 he
Slide 28: Value at risk
Value at risk Definition From April 1, 2015 to September 30, 2015 (billions of yen) − 99% confidence level − Maximum: 9.1 − 1-day time horizon for outstanding portfolio − Minimum: 3.5 − Inter-product price fluctuations considered − Average: 5.2 (billions of yen) FY2013/14 FY2014/15 FY2014/15 FY2
Slide 29: Number of employees
Number of employees FY2013/14 FY2014/15 FY2014/15 FY2015/16 Mar Mar Sep Dec Mar Jun Sep Japan (excluding FA) 14,149 14,144 14,391 14,290 14,144 14,722 14,575 Japan (FA) 1,888 1,829 1,853 1,853 1,829 1,848 1,806 Europe 3,461 3,485 3,530 3,539 3,485 3,492 3,494 Americas 2,281 2,449 2,421 2,445 2,449 2
Slide 30: 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 31: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com