Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (November 2011)
20 slides from Nomura's debt investor presentation, November 2011
Slide 1: Creditor Presentation
Creditor Presentation Second Quarter, Fiscal Year Ending March 2012 November 2011 © Nomura
Slide 2: Disclaimer
This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2011 Nomura Holdings, Inc. All rights reserved. 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
Slide 3: Table of contents
Table of contents Executive Summary Overview Risk Management Liquidity, Funding, Capital and Leverage Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calculated at the exchange rate of USD 1 = JPY 77.04, i.e. FRB noon rate as of Sep 30th 2011
Slide 4: Executive Summary
Executive Summary Challenging quarter as market conditions deteriorated as a result of the ongoing eurozone debt crisis ¾ Although Retail segment revenues and income declined due to adverse market conditions, client assets continued to record net inflows as we diversified our product offering acro
Slide 5: Overview – Second Quarter Results
Overview – Second Quarter Results Highlights (JPY bn) FYE2011 FYE2012 ¾ Net revenue totaled JPY301.6bn, down 9% QoQ, up 9% YoY; (USD bn) FYE2012 net loss3 totaled JPY-46.1bn QoQ YoY 2Q First st half a 2Q 3Q 4Q 1Q 2Q – Business B siness segment net revenue re en e totaled JPY179 JPY179.3bn 3bn do dow
Slide 6: Retail
Retail Net revenue and income before income taxes declined QoQ as a result of adverse market conditions due to fiscal instability in Europe Retail client assets declined Y4.3tn QoQ due primarily to market factors, however client asset net inflows of Y1.1tn driven by diversified product offering
Slide 7: Asset Management
Asset Management Lower net revenue and income before income taxes QoQ driven by a decline in assets under management resulting from the uncertainty in Europe and downgrade of US credit rating. Income before income taxes increased YoY Share of Japan Public Investment Advisory Assets Net Revenue and
Slide 8: Wholesale / Global Markets
Wholesale / Global Markets Client flows in Global Markets continued to grow through the quarter. However, challenging trading conditions led to a decline in overall revenues Wh l Wholesale l Net N t Revenue R and d Income I Before B f Income I T Taxes Wholesale Net Revenue by Region (JPY bn) AEJ U
Slide 9: Wholesale / Investment Banking
Wholesale / Investment Banking Cross-border transactions related to Japan and the solutions business were the main revenue drivers, but revenues declined QoQ mainly due to the weak ECM market Expanding global franchise out from home market Investment Banking Breakdown Highlights FYE2011 FYE2012
Slide 10: Expenses
Expenses Non-interest expenses: JPY346.2bn (up 17.0% QoQ), non-interest expenses of the three business segments decreased 1.2% QoQ − The increase is primarily due to consolidation of expenses of newly consolidated entities1; full three months of expenses booked in 2Q for these companies Announce
Slide 11: Risk Management – Level3, Private Equity and Exposure in European peripheral countries
Risk Management – Level3, Private Equity and Exposure in European peripheral countries Continued to manage risk prudently during the first half—de-risking less liquid positions, maintaining caution around intensified macro uncertainties Net country exposure to European peripheral countries is US
Slide 12: Liquidity and Funding – Structural Stability with Ample Excess Liquidity
Liquidity and Funding – Structural Stability with Ample Excess Liquidity Structurally Long-Funded Balance Sheet (Sep 2011) Highlights ¾ Approximately pp y 80% of assets are liquid q trading g assets Assets Liabilities & Equity ¾ Assets and liabilities matched by funding trading assets in local curre
Slide 13: Liquidity and Funding – Conservative Funding Profile
Liquidity and Funding – Conservative Funding Profile As we pre-funded upcoming outflows from maturities of debt over next 12 months, as well as other potential outflows under stress, we can be opportunistic with respect to funding for next year. Diversification is important to our funding strate
Slide 14: Capital and Leverage - High Quality Capital, Prudent Leverage
Capital and Leverage - High Quality Capital, Prudent Leverage Financial Indicators Highlights (JPYbn) (JPYbn) (USDbn) (Preliminary) Jun2011 Sep2011 Sep2011 Tier 1 2,134 2,050 $26.6 ¾ Tier 1 capital ratio as of September 30, 2011 was 15.8% Tier 2 451 449 $5.8 Tier 3 146 132 $ $1.7 ¾ Gross leverage re
Slide 15: Appendix
NOMURA Appendix
Slide 16: Investment Banking: Expanding global franchise out from home market
Investment Banking: Expanding global franchise out from home market M&A deals closed in 2Q Global M&A business expanding driven by Japan outbound M&A Announced M&A deals due to close from 3Q Bain Capital, Hellman & Friedman / Securitas Direct (SEK21.9bn) J Japan Jan-Oct, Jan-Oct, 2010 2011 EMEA Amer
Slide 17: Global Reach
Global Reach1 Americas Europe & Middle East Asia-Pacific 2,537 2 537 employees in 3 countries with 4 492 employees in 18 countries 4,492 28,668 28 668 employees in 12 countries presence in: with presence in: with presence in: North America: Europe: Asia ex-Japan: – Atlanta – Amsterdam – Moscow
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen September 30, March 31, September 30, March 31, Increase/(Decrease) Increase/(Decrease) 2011 2011 2011 2011 ASSETS LIABILITIES AND EQ UITY Short-term borrowings 1,196,630 1,167,077 29,553 Cash and cash deposits: Payables and deposits: Cash a
Slide 19: Consolidated Income
Consolidated Income FY2011.3 FY2012.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 Q 2Q 3Q Q 4Q Q 1Q Q 2Q Q Revenue Commissions 337.5 404.7 306.8 395.1 405.5 83.5 100.0 103.8 96.8 85.9 Fees f rom investment banking 99.3 85.1 55.0 121.3 107.0 24.9 34.0 27.8 13.8 13.8 g Asset management and p portf ol
Slide 20: Credit Rating
Credit Rating Rating and Japan Credit S&P Moody's Investment Rating g Agency g y Information Asofof3030September As June 20112011 Nomura Holdings Inc. Long-term BBB+ Baa2 A+ AA- Short-term A-2 - a-1 - Outlook Stable Stable Stable Stable Nomura Securities Co., Ltd L Long-term t A A- B 1 Baa1 A+ AA AA
Nomura Holdings — Debt Investor Presentation (November 2011) on 6ix