Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (July 2012)

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

  1. Slide 1: Creditor Presentation

    Creditor Presentation First Quarter, Fiscal Year Ending March 2013 July 2012 © Nomura

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents  Executive Summary  Overview of Results  Retail, Asset Management, Wholesale  Non-Interest Expenses  Balance Sheet Management  Exposure to European Peripheral Countries, Level 3 Assets  Liquidity  Funding Profile  Robust Financial Position  Appendix Unless otherwise state

  4. Slide 4: Executive Summary

    Executive Summary  Profitable for third straight quarter – Net revenue: Y369.3bn (-26% QoQ; +12% YoY) – Income before income taxes: Y19.7bn (-68% QoQ; -43% YoY) Financial – Net income1: Y1.9bn (-91% QoQ; -89% YoY) Highlights  Business segment income before income taxes of Y9.0bn; Retail and Asset

  5. Slide 5: Overview of Results

    Overview of Results Quarter Key Points FYE2012 FYE2013 (JPY bn) QoQ YoY (USD bn)  Retail 1Q 2Q 3Q 4Q 1Q – Net revenue Y82.7bn (-10% QoQ) 369.3 – Income before income taxes Y12.2bn (-40% QoQ) Net revenue 330.4 301.6 404.9 499.0 -26% +12% $4.63  Sales of foreign bonds targeting client needs increase

  6. Slide 6: Retail

    Retail Net Revenue and Income Before Income Taxes Key Points FYE2012 FYE2013  Lower revenue and income QoQ due to a sharp market decline following a QoQ YoY (JPY bn) rebound in the prior quarter and weaker risk appetite among retail investors (USD bn) 1Q 2Q 3Q 4Q 1Q – Decline in sales of investment

  7. Slide 7: Asset Management

    Asset Management Net Revenue and Income Before Income Taxes Key Points  Revenues and income both up QoQ; Delivered stable earnings under tough market conditions (JPY bn) FYE2012 FYE2013  Revised levels of fund distributions and enhanced disclosure to investors and sales (USD bn) QoQ YoY companies

  8. Slide 8: Wholesale

    Wholesale Net Revenue and Income (Loss) Before Income Taxes1 Key Points FYE2012 FYE2013  Revenues driven by resilient performance in Fixed Income in all regions (JPY bn) QoQ YoY (USD bn) 1Q 2Q 3Q 4Q 1Q  Equities and Investment Banking revenues affected by less liquidity in major markets and fewer

  9. Slide 9: Non-Interest Expenses

    Non-Interest Expenses Full year Quarter Key points (JPY bn) (JPY bn) 1,500 1,450.9  Non-interest expenses: Y349.6bn Other (-20% QoQ) 500 Business development 1,200 438.2 – Other expenses declined 38% QoQ expenses 1,037.4 due to a drop in cost of goods sold at Occupancy and related 370.5 400 depreci

  10. Slide 10: Balance Sheet Management

    Balance Sheet Management Balance Sheet Composition Balance Sheet Funding Profile (June 2012)  Highly Liquid, Healthy Balance Sheet  Conservative Funding Profile – 79% of assets are highly liquid Assets Liabilities / Equity – Approx. 80% of unsecured funding4 trading and related assets that are is

  11. Slide 11: Exposure to European Peripheral Countries, Level 3 Assets

    Exposure to European Peripheral Countries, Level 3 Assets GIIPS Country Exposure (preliminary, as of Jun 30, 2012) Level 3 Assets3 and Net Level 3 Assets/Tier 1 Capital (JPY tn) Trading Assets Level 3 Assets Net Change Change (US$m) Net inventory 1 Net counterparty Net Level 3 Assets Net Level 3 Ass

  12. Slide 12: Liquidity Portfolio

    Liquidity Portfolio Firm-Wide Liquidity Management Liquidity Portfolio1： $67bn, 15% of Total Assets  Liquidity Stress Test ~ Quantify liquidity Risk Tolerance Breakdown (Jun 2012) – The firm carries out its liquidity stress test daily in order to maintain adequate liquidity to withstand hypothetica

  13. Slide 13: Funding Profile

    Funding Profile Unsecured Funding1: Nearly 80% Long-Term Debt; Diversified Funding Sources Long-Term Debt Profile2 (US$bn) By Region 30 Short-Term Non Debt Japan 25 20% 20% Current Portion of Maintain an adequate liquidity Long-Term Debt Loans 20 portfolio for potential cash needs 11% Bank from debt

  14. Slide 14: Robust Financial Position

    Robust Financial Position Balance Sheet-Related Indicators and Capital Ratios Tier 1 Capital, Tier 1 Capital Ratio2 (Mar 2011) (Mar 2012) (Jun 2012) (JPY tn) Tier 1 Capital Tier 1 Ratio 4 20% Basel 2 basis Basel 2.5 basis  Total assets Y36.7tn Y35.7tn Y35.3tn 3 15% ($442bn)  Shareholders‟ equity Y

  15. Slide 15: Appendix

    NOMURA Appendix

  16. Slide 16: Consolidated Balance Sheet

    Consolidated Balance Sheet Millions of yen Millions of yen June 30, March 31, June 30, March 31, Increase/(Decrease) Increase/(Decrease) 2012 2012 2012 2012 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 1,244,472 1,185,613 58,859 Cash and cash equivalents 693,713 1,070,

  17. Slide 17: Consolidated Income

    Consolidated Income Full year Quarter (billions of yen) FYE2012 FYE2013 FYE2011 FYE2012 1Q 2Q 3Q 4Q 1Q Revenue Commissions 405.5 347.1 96.8 85.9 74.0 90.4 77.4 Fees from investment banking 107.0 59.6 13.8 13.8 17.2 14.8 10.4 Asset management and portfolio service fees 143.9 144.3 39.1 36.7 33.4 35.1

  18. Slide 18: Segment “Other”

    Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) (billions of yen) 40 35.2 40 30 30 22.1 20 17.0 20 12.9 14.6 10 10 0 0 -10 -10 -15.2 -14.5 -20 -20 FYE2012 FYE2013 FYE2011 FYE2012 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic 2.3 8.4 -1.5 4.2 7.7 -2.1 -1.2 h

  19. Slide 19: Value at Risk

    Value at Risk  Definition  From April 1, 2012 to June 29, 2012 (billions of yen)  99% confidence level  Maximum: 7.2  1-day time horizon for outstanding portfolio  Minimum: 4.3  Inter-product price fluctuations considered  Average: 5.5 (billions of yen) Mar. 31, Jun. 30, Sep. 30, Dec. 31, Ma

  20. Slide 20: Number of Employees

    Number of Employees Mar. 31,2011 Jun. 30,2011 Sep. 30,2011 Dec. 31,2011 Mar. 31,2012 Jun. 30,2012 Japan (excluding FA)1 12,829 20,263 20,105 19,882 19,598 20,197 Japan (FA) 2,089 2,096 2,078 2,048 2,011 2,014 Europe 4,353 4,436 4,492 4,143 4,014 3,975 Americas 2,348 2,383 2,537 2,466 2,420 2,423 Asi

  21. Slide 21: Credit Ratings

    Credit Ratings Standard & Moody‟s 1 Rating and Japan Credit As of July 30, 2012 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-

Nomura Holdings — Debt Investor Presentation (July 2012) on 6ix