Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2004 Earnings Presentation
34 slides from Nomura's earnings presentation, October 2003
Slide 1: Consolidated Results of Operations (US GAAP)
Consolidated Results of Operations (US GAAP) Second quarter, fiscal year ending March 2004 Nomura Holdings, Inc. October 2003 1
Slide 2: Outline of the Presentation
Outline of the Presentation Financial Summary Review of Businesses ¾ Segment Information ¾ Domestic Retail ¾ Global Wholesale ¾ Asset Management ¾ Non-interest Expenses Appendix 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2003 Nomura Holdings, Inc. All rights re
Slide 3: Consolidated Financial Summary
Consolidated Financial Summary Second quarter ending March 31, 2004 (2003.4 – 2003.9) ¾Net revenue 414.8 (up 46%*) ¾Non-interest expenses 255.5 (up 5%*) ¾Income before income taxes 159.3 (up 292%*) Semi Annual ¾Income before cumulative effect of accounting change 86.7 (up 308%*) Results ¾Net income
Slide 4: Review of Businesses
Review of Businesses Segment Information (P5) Domestic Retail (P6-8) Global Wholesale (P9-12) Asset Management (P13-14) Non-interest Expenses (P15-16) 4
Slide 5: Segment Information
Segment Information Income before Income Taxes by Segment Do m e s t i c R e t a i l G l ob a l Wh o l e sa l e Asset M anagement (Billions of yen) 95.4 FY03.3(1/2) 100 2Q 90 1Q 80 Total 70 Up 110% 57.6 Total Income before Income Taxes 60 for 3 Business Segments 50 45.4 45.5 FY03.3 39.4 9.0 1Q 51.5
Slide 6: Domestic Retail (1)
Domestic Retail (1)* Net Revenue Points Commissions (40.5 billion yen, up 58%) 9 Stock Brokerage Commissions** (26.2 billion yen, up157%) (Billions of yen) ¾ Individual Equity Agency Transaction Value*** 80 75.6 (monthly average) 9.1 trillion yen, up 111% 70 Up 33% ¾ Equity Holding Accounts: 1.323
Slide 7: Domestic Retail (2)
Domestic Retail (2) Stock Brokerage Commissions / Foreign Currency Bond Distribution to Retail Investors / Revenue Breakdown (approx. figs.) (Billions of yen) Stock Brokerage Commissions Revenue Breakdown 30 26.2 25 100% 0% 3% 1% 3% 20.5 7% 8% 20 90% 24% 14% 16.8 14% 14.4 13.9 13.5 80% 14% 15 12.9 1
Slide 8: Domestic Retail (3)
Domestic Retail (3) Client Assets / Net Asset Accumulation (excluding financials) Client Assets Net Asset Accumulation (Domestic Retail Division, excluding financials) (monthly average) Foreign bonds Domestic bonds* (Trillions of yen) Equities Stock investment trusts Bond investment trusts Overseas
Slide 9: Global Wholesale (1) Fixed Income
Global Wholesale (1) Fixed Income Points Net Revenue Foreign Currency Bond Public Offering to Retail Investors (Billions of yen) 9 National Australia Bank: 77.2 billion yen (A$) 60 9 Eksportfinans ASA: 59.4 billion yen (CAN$) 9 Toyota Motor Credit: 45.5 billion yen (US$) 50 48.1 Up 48% Large-sca
Slide 10: Global Wholesale (2) Equity
Global Wholesale (2) Equity Points Market Environment Net Revenue 9 Equity Agency Transaction Value* (monthly average) (Billions of yen) 45.4 trillion yen, up 55% YOY 45 Block Trades 40 39.0 9 Active block and basket trading 35 Net Gain on Equity Trading (Nomura Securities) 30 Up 215% 25 (Billi
Slide 11: Global Wholesale (3) Investment Banking
Global Wholesale (3) Investment Banking Points IPO, PO* 9 IPO Market: 313.5 billion yen, up 152% YOY Net Revenue Nomura: 41.9 billion yen, up 332% YOY (Billions of yen) 9 PO Market: 266.1 billion yen, up 12% YOY 25 Nomura: 217.8 billion yen, up 99% YOY ¾ Major Issues: 20.6 Chiba Bank (13.4 billion
Slide 12: Global Wholesale (4) Merchant Banking
Global Wholesale (4) Merchant Banking Points Net Revenue New Deals (Billions of yen) 9 NPF granted first refusal right to newly issued 8 7.3 shares of Huis Ten Bosch 7 6 5 Exposure to Merchant Banking Business 4 3 Terra Firma NPF 2 (Billions of yen) 1 300 281.8 284.9 291.0 291.4 0 14.3 14.3 16.1
Slide 13: Asset Management (1)
Asset Management (1) Points New Funds Net Revenue 9 Really Excellent Stock Fund Initial sales: 39.7 billion yen (Billions of yen) 9 Nomura Australian Bond Fund 12 Initial sales: 28.0 billion yen 10.3 Assets Under Management of NCRAM 10 Down 22% 9.3 9 Sept. 30, 2003 US$ 5.8 billion (up 53% YOY) 8
Slide 14: Asset Management (2)
Asset Management (2) Assets Under Management (NAM) Market Share (NAM) (Trillions of yen) 25 Other Investment advisory Bond investment trusts Stock investment trusts Bond investment trusts Total public investment trusts 20 Stock investment trusts 18.2 45% 0.2 41% 17.1 40% 39% 40% 40% 40% 39% 0.2 15.6
Slide 15: Non-Interest Expenses (1)
Non-Interest Expenses* (1) (Billions of yen) Points 150 Up 7% 126.7 129.7 Compensation and Benefits 118.5 67.7 billion yen, up 17% 120 9 A special charge for NAM’s withdrawal from the Japan Securities Dealers Employees’ Pension Fund (2.8 billion yen) 90 Information Processing and Communications
Slide 16: Non-Interest Expenses (2)
Non-Interest Expenses (2) Compensation and Benefits 9 Fixed-type expenses: 36.1 billion yen, up 2.2% 9 Variable-type expenses: 28.8 billion yen, up 28.6% Compensation and Benefits* (Billions of yen) 50 40.4 36.7 Fixed-type 40 36.6 expenses 34.2 35.3 36.6 35.0 34.3 36.1 36.0 Variable-type 30 32.5 28
Slide 17: Appendix
Appendix • Revenue and Income by Business Segment (P18) • Global Wholesale (P19) • Domestic Retail Related Data (P20) • Major Differences (Segment / Income Statement) (P21) • Revenue (P22-25) • Non-interest Expenses (P26) • Client Assets (P27) • Number of Accounts (P28) • Secondary Market Share Data
Slide 18: Revenue and Income by Business Segment (Quarterly Base)
Revenue and Income by Business Segment (Quarterly Base) Units: millions of yen Domestic Retail FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Non-interest revenue 60,953 50,806 57,224 57,172 66,436 56,136 69,366 54,999 74,573 75,214 Net-interest revenue 1,076 467 870 537 599 605 915 194 397 378
Slide 19: Global Wholesale
Global Wholesale (Revenue and Income by Business Line, Quarterly Base) Units: millions of yen Fixed Income FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net revenue 20,727 23,175 19,549 27,302 43,887 32,476 41,550 36,052 62,261 48,118 Non-interest expenses 15,450 16,768 15,648 18,873 18,944 16,
Slide 20: Domestic Retail Related Data
Domestic Retail Related Data FY02.3 FY03.3 FY04.3 Domestic Retail (Billions of yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net interest revenue 1.1 0.5 0.9 0.6 0.6 0.8 0.7 0.2 1.2 1.2 Sales credit 13.1 12.3 18.8 17.3 20.5 17.8 32.2 25.2 40.4 21.7 Investment trust administration fees and other 14.9 13.2 12.6
Slide 21: Major Differences (Segment / Income Statement)
Major Differences (Segment / Income Statement) (FY04.3 six months) Total Income before Income Taxes for 3 Business Segments: 132.4 billion yen Loss/gain on undesignated hedging instruments -11.7 billion yen included in Net gain on trading Loss/gain on investment securities -0.6 billion yen Equity in
Slide 22: Revenue (1) (Commissions)
Revenue (1) (Commissions) (Billions of yen) 60 56.0 50 46.1 39.6 40 34.6 34.8 34.7 34.3 33.8 31.0 30 26.6 20 10 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 39.6 31.0 34.6 34.8 46.1 34.7 34.3 26.6 33.8 56.0 Other 2.4 5.8 3.2 4.4 5.7 9.8
Slide 23: Revenue (2) (Fees from Investment Banking)
Revenue (2) (Fees from Investment Banking) (Billions of yen) 35 31.0 30 25 22.9 19.6 19.9 20 18.6 18.3 16.9 15.6 14.1 14.5 15 10 5 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 14.1 22.9 19.6 18.6 15.6 18.3 16.9 31.0 14.5 19.9 Other 0.4 0
Slide 24: Revenue (3) (Asset Management and Portfolio Service Fees)
Revenue (3) (Asset Management and Portfolio Service Fees) (Billions of yen) 35 29.6 30 27.8 26.9 25.7 24.2 25 21.9 20 17.5 17.0 15.7 15 13.7 10 5 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 29.6 27.8 25.7 26.9 24.2 21.9 17.5 15.7 13.7 1
Slide 25: Revenue (4) (Net Gain on Trading / Net Interest Revenue)
Revenue (4) (Net Gain on Trading / Net Interest Revenue*) (Billions of yen) 175 169.3 150 125 113.9 99.5 100 88.7 80.3 81.5 66.6 75 69.1 56.8 23.7 50 25 0 -25 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 88.7 23.7 69.1 169.3 56.8 66.6 81.5
Slide 26: Non-interest Expenses
(Non-interest Expenses*) (Billions of yen) 250 239.4 200 185.1 162.9 150 124.3 128.8 126.7 121.8 117.7 118.5 113.2 100 50 0 FY02.3 FY02.3 FY02.3 FY02.3 FY03.3 FY03.3 FY03.3 FY03.3 FY04.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 121.8 239.4 117.7 185.1 124.3 118.5 113.2 162.9 128.8 126.7 Other (s p
Slide 27: Client Assets (Trillions of yen)
Client Assets (Trillions of yen) Nomura Securities Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Equities 28.9 24.9 24.8 25.1 24.9 23.6 22.3 21.6 24.8 28.7 Bonds 12.3 12.8 13.3 13.7 14.9 15.4 15.4 16.8 17.9 18.4 Stock investment trusts 3.2 2.6 2.7 2.7 2.7 2.5 2.4 2.
Slide 28: Number of Accounts
Number of Accounts Nomura Home Trade (online trading accounts) (Thousands of accounts) Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 686 778 860 936 1,005 1,079 1,114 1,141 1,168 1,215 IT Share FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q No. of order 38% 36% 37% 39% 39
Slide 29: Secondary Market Share Data
Secondary Market Share Data Market units: trillions of yen Individual Equity Agency Transactions Share (monthly average) FY02.3 FY03.3 FY04.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Market 4.9 3.3 3.9 4.0 5.2 3.9 5.2 3.1 5.0 9.1 Nomura's share 16% 16% 16% 13% 20% 16% 17% 8% 8% 10% Off-floor/Off-exchange Equit
Slide 30: Primary Market Share Data (Value Base)
Primary Market Share Data (Value Base) * Straight Bonds FY02.3 FY03.3 01.4–6 01.4–9 01.4–12 01.4–02.3 02.4–6 02.4–9 02.4–12 02.4–03.3 03.4–03.6 03.4–03.9 Nomura's share 19% 19% 19% 21% 20% 22% 22% 23% 22% 23% Euro-Yen Bonds ** FY02.3 FY03.3 01.4–6 01.4–9 01.4–12 01.4–02.3 02.4–6 02.4–9 02.4–12 02.4–
Slide 31: Assets Under Management (NAM / NCRAM)
Assets Under Management (NAM / NCRAM) NAM (Trillions of yen) Jun. 01 Sep. 01 Dec. 01 Mar. 02 Jun. 02 Sep. 02 Dec. 02 Mar. 03 Jun. 03 Sep. 03 Stock investment trusts 2.7 2.4 2.9 3.2 3.6 3.3 3.3 3.2 3.5 4.3 Bond investment trusts 14.5 12.9 10.9 10.4 9.2 8.3 7.8 7.3 7.0 7.0 Non-public investment trusts
Slide 32: Value at Risk (Consolidated)
Value at Risk (Consolidated) Definition From Apr. 1 to Sept. 30 2003 ¾ 99% confidence level Maximum: 5.6 billion yen Minimum: 1.7 billion yen ¾ 1-day time horizon for out trading portfolio Average: 2.92 billion yen ¾ Inter-product price fluctuations considered (Billions of yen) End of Month Sep.01
Slide 33: Number of Employees
Number of Employees Mar. 01 Sep. 01 Mar. 02 Sep. 02 Mar. 03 Jun. 03 Sep. 03 Asia/Oceania 486 476 468 462 616 622 646 Americas 835 893 827 753 797 821 843 Europe 1,370 1,449 1,381 1,352 1,389 1,439 1,372 Japan (FA, SA) 2,195 2,192 2,177 2,072 1,986 1,960 1,901 Japan (excluding FA, SA)* 9,507 9,846 9,
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com 34 34