Nomura Holdings, Inc. · TSE:8604
Nomura — FY2015/16 Earnings Presentation
31 slides from Nomura's earnings presentation, April 2016
Slide 1: Creditor Presentation Fourth quarter, year ended March 2016
Connecting Markets East & West Creditor Presentation Fourth quarter, year ended March 2016 (US GAAP) Nomura Holdings, Inc. April 2016 © 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
Executive summary FY2015/16 full year highlights Three segment total income before income taxes: Y179.7bn [$1.6bn] (-35% YoY); Retail and Wholesale results impacted by market dislocation and slowdown in client activity from August onwards Retail – Sales of stocks and investment trusts slowed as re
Slide 4: Executive summary
Executive summary Income (loss) before income taxes and FY2015/16 4Q highlights net income (loss)1 Group Income (loss) before income taxes Three segment total loss before income taxes of Y4.9bn [$44m] as business environment Net income (loss) (billions of yen) 116.1 deteriorated from January due t
Slide 5: Overview of results
Overview of results Highlights (billions of yen, except EPS and ROE) FY2015/16 FY2015/16 QoQ YoY YoY 4Q Full year Net revenue 280.1 [$2.5bn] -21% -36% 1,395.7 [$12.4bn] -13% Non-interest expenses 292.5 [$2.6bn] -4% -11% 1,230.5 [$10.9bn] -2% Income (loss) -12.3 [$-109m] - - 165.2 [$1.5bn] -52% befor
Slide 6: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2015/16 FY2015/16 QoQ YoY YoY 4Q Full year Net revenue Retail 85.0 [$756m] -18% -31% 435.6 [$3.9bn] -9% Asset Management 20.3 [$181m] -20% -15% 95.4 [$849m] +3% Wholesale 136.2 [$1.2bn] -27% -41% 720.3 [$6
Slide 7: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) Full year Net revenue: Y435.6bn [$3.9bn] (-9% YoY) Full year Quarter Income before income taxes: Y127.6bn [$1.1bn] (-21% YoY) − Solid performance in 1H but sales of stocks and investment trusts slowed FY14 FY14 FY15 /
Slide 8: Retail: Progress amid challenging environment
Retail: Progress amid challenging environment Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Continued net inflows into discretionary investments and investment trusts Recurring revenue cost coverage ratio (rhs) despite challenging environment; Recurring revenue
Slide 9: Asset Management
Asset Management Net revenue and income before income taxes Key points (billions of yen) Full year Quarter Full year Net revenue: Y95.4bn [$849m] (+3% YoY) Income before income taxes: Y36.7bn [$326m] (+14% YoY) FY2014 FY2014 FY2015 /15 FY2015/16 − Significantly stronger inflows into ETFs, invest
Slide 10: Asset Management: Highly recognized investment management expertise
Asset Management: Highly recognized investment management expertise 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% 24.9% 24.9% 24.8% 24.6% 50.0 41.4 40.0 42.2 40.
Slide 11: Wholesale
Wholesale Net revenue and income (loss) before income taxes Key points (billions of yen) Full year Quarterly Full year Net revenue: Y720.3bn [$6.4bn] (-9% YoY) FY14 Income before income taxes: Y15.4bn [$137m] (-81% YoY) FY14 FY15 /15 FY2015/16 QoQ YoY − Equities and Investment Banking both repor
Slide 12: Wholesale: Global Markets
Wholesale: Global Markets Net revenue1 FY2015/16 full year and 4Q net revenue by region (billions of yen) Full year Quarter Equities -31% QoQ Fixed Income QoQ 199.0 -12% YoY YoY 176.2 -46% YoY FI EQ 158.7 157.2 81.7 92.1 108.3 [$963m] Americas 75.5 76.9 117.4 80.7 [$718m] EMEA 84.1 83.2 80.2 27.6 [$
Slide 13: Wholesale: Investment Banking
Wholesale: Investment Banking FY2015/16 4Q announced deals Full year gross revenue flat YoY despite fee pool decline of Net revenue over 10% Investment Banking (gross) (billions of yen) Driven by global business centered on Asia; Japan revenues at five-year high 57.3 49.7 63.1 34.4 47.0[$418m] S
Slide 14: Non-interest expenses
Non-interest expenses Full year Quarter Key points Full year (billions of yen) (billions of yen) Non-interest expenses: Y1,230.5bn 400 [$10.9bn] (-2% YoY) 1,500 Other – Compensation and benefits declined 329.6 1,257.4 1,230.5 318.0 316.7 [$2.6bn] 303.3 mainly internationally due to cost 1,200 292.
Slide 15: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Risk weighted assets3 and CET1 capital ratio (trillions of yen) Mar 2015 Dec 2015 Mar 2016 RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) Total assets Y41.8trn Y43.5trn Y41.1trn $0.4trn 20.0 20.0% 15.1% 15.4% 14.
Slide 16: Funding and liquidity
Funding and liquidity Balance sheet (As of Mar 2016) Funding Profile Balance sheet structure Assets Liabilities and equity Conservative Funding Profile Highly liquid, healthy balance sheet structure – More than 80% of unsecured funding2 is – 77% of assets are highly liquid long-term debt trading
Slide 17: Debt Profile
Debt Profile Robust structure: More than 70% 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 JPY5.9 trillion [$52.5bn] as of March 31, 2016 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 diversified a
Slide 19: Credit Ratings
Credit Ratings Standard & Moody’s Fitch Rating and Japan Credit As of April 27, 2016 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- A
Slide 20: Financial Supplement
Financial Supplement
Slide 21: Consolidated balance sheet
Consolidated balance sheet Millions of yen Millions of yen March 31, March 31, Increase/ March 31, March 31, Increase/ 2015 2016 (Decrease) 2015 2016 (Decrease) ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 662,256 662,902 646 Cash and cash equivalents 1,315,408 3,476,2
Slide 22: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2014/15 FY2015/16 4Q 1Q 2Q 3Q 4Q Revenue Commissions 453.4 432.0 123.7 130.3 111.5 102.3 87.8 Fees from investment banking 95.1 118.3 25.8 24.5 44.9 20.0 29.0 Asset management and portfolio service fees 203.4 229.0 54.3 59
Slide 23: Consolidated results: Income (loss) 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) FY2014/15 FY2015/16 4Q 1Q 2Q 3Q 4Q Retail 161.8 127.6 40.9 50.9 36.7 27.8 12
Slide 24: Retail related data
Retail related data Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2014/15 FY2015/16 QoQ YoY 4Q 1Q 2Q 3Q 4Q Commissions 258.9 220.3 67.7 73.8 55.8 51.8 38.9 -24.9% -42.6% Of which, brokerage commission 81.8 78.9 22.6 26.4 20.0 18.0 14.4 -20.0% -36.2% 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) FY2014/15 FY2015/16 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 92.4 95.4 23.9 26.9 22.9 25.3 20.3 -19.8% -15.0% Non-interest expenses 60.3 58.7 17.2 15.2 14.4 14.6 14.5 -0.4% -15.6% Income before income taxes 32.1 36.7 6.7
Slide 26: Wholesale related data
Wholesale related data Wholesale Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2014/15 FY2015/16 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 789.9 720.3 231.5 205.2 192.9 186.0 136.2 -26.8% -41.2% Non-interest expenses 707.7 704.9 177.7 185.5 184.3 176.0 159.0 -9.7% -10.5% Income (loss) before in
Slide 27: Segment “Other”
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 50.0 46.0 40.0 30.0 20.0 14.7 16.1 10.0 6.1 0.0 -4.0 -1.6 -10.0 -20.0 -30.0 -23.0 1 2 1 2 3 4 5 FY2014/15 FY2015/16 FY2014/15 FY2015/16 4Q 1Q 2Q 3Q 4Q Net gain (loss) related to economic 15.1 6.4 -0.3 -2.6 1.1 -0.6
Slide 28: Value at risk
Value at risk Definition From April 1, 2015 to March 31, 2016 (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: 5.3 (billions of yen) FY2014/15 FY2015/16 FY2014/15 FY2015/
Slide 29: Number of employees
Number of employees FY2014/15 FY2015/16 FY2014/15 FY2015/16 Mar Mar Mar Jun Sep Dec Mar Japan 15,973 16,083 15,973 16,570 16,381 16,282 16,083 Europe 3,485 3,424 3,485 3,492 3,494 3,433 3,424 Americas 2,449 2,503 2,449 2,439 2,514 2,501 2,503 Asia and Oceanea1 6,765 6,855 6,765 6,788 6,862 6,853 6,8
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