Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2014/15 Earnings Presentation
24 slides from Nomura's earnings presentation, November 2014
Slide 1: Creditor Presentation Second Quarter, Year Ending March 2015
Connecting Markets East & West Creditor Presentation Second Quarter, Year Ending March 2015 (US GAAP) Nomura Holdings, Inc. November 2014 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive Summary (p. 2) Consolidated Balance Sheet (p. 15) Overview of Results (p. 3) Consolidated Income (p. 16) Retail (p. 4) Consolidated Results: Income (loss) before Income Taxes by Segment and Region (p. 17) Asset Management (p. 5) Ret
Slide 3: Executive Summary
Executive Summary Highlights Income before income taxes FY2014/15 1H Group (billions of yen) Second best first-half net income in 10 years: Slowdown from FY2013/14 1H 113.2 – Net revenue: JPY744.7bn; Income before income taxes: JPY125.7bn; Net income1: JPY72.7bn; ROE2: 5.7%; EPS3: JPY19.34 86.9 88
Slide 4: Overview of Results
Overview of Results Result for Six Months Quarterly Result Ended September 30 Key Points FY2013/ FY2014/2015 FY2013/2014 FY2014/2015 (billions of yen) 2014 QoQ YoY YoY Retail 1H 1H (billions of dollar) 2Q 1Q 2Q Net revenue: JPY117.9bn (+10% Net revenue 356.4 370.8 373.8 +1% +5% 787.7 744.7 QoQ; -1
Slide 5: Retail
Retail Net Revenue and Income before Income Taxes Key Points Net revenue and income before income taxes both up QoQ on robust sales of (billions of yen) FY2013/14 FY2014/15 (billions of dollar) QoQ YoY stocks, investment trusts, and discretionary investments 2Q 3Q 4Q 1Q 2Q Retail client assets a
Slide 6: Asset Management
Asset Management Net Revenue and Income before Income Taxes Key Points (billions of yen) FY2013/14 FY2014/15 (billions of dollar) QoQ YoY Assets under management at record high on inflows into investment trusts and 2Q 3Q 4Q 1Q 2Q due to market factors 21.7 Income before income taxes remained str
Slide 7: Wholesale
Wholesale Net Revenue and Income before Income Taxes Key Points (billions of yen) (billions of dollar) FY2013/14 FY2014/15 QoQ YoY Solid revenues 2Q 3Q 4Q 1Q 2Q – Revenues remained resilient, roughly unchanged QoQ as stronger revenues 168.1 in Japan and AEJ offset a slowdown in EMEA and the Americ
Slide 8: Wholesale: Global Markets and Investment Banking
Wholesale: Global Markets and Investment Banking Net Revenue: Global Markets Net Revenue: Investment Banking (billions of yen) Investment Banking (gross) (billions of yen) Equities +1% 45.8 35.9 55.4 43.2 40.7 (USD0.4bn) Fixed Income (USD1.5bn) QoQ Investment Banking (net) 166.8 166.6 168.1 +5% +1%
Slide 9: Non-Interest Expenses
Non-Interest Expenses Full Year Quarter Key Points (billions of yen) (billions of yen) Other Non-interest expenses: Y299.8bn (-6% QoQ) 1,575.9 Business 400 development 1,500 expenses – Compensation and benefits declined Occupancy and 1,195.5 319.2 1,200 292.5 301.4 299.8 significantly as previous
Slide 10: Robust Financial Position
Robust Financial Position Balance Sheet Related Indicators and Capital Ratios Risk Weighted Assets3 and Tier 1 Ratio (trillions of yen) RWA (Basel 3) (lhs) Tier 1 ratio (Basel 3) (rhs) Mar Jun Sep 20.0 20.0% JPY43.8trn Total assets JPY43.5trn JPY43.9trn (USD400bn) 13.2% 13.1% 12.7% 15.0 12.2% 12.0
Slide 11: Funding and Liquidity
Funding and Liquidity Balance sheet (As of Sep 2014) Funding Profile Balance Sheet Structure Assets Liabilities and equity Conservative Funding Profile Highly liquid, healthy balance sheet structure – More than 80% of unsecured funding – 83% of assets are highly liquid is long-term debt trading
Slide 12: 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 13: Liquidity Portfolio
Liquidity Portfolio The firm’s liquidity portfolio1 was approximately JPY5.8 trillion (USD53bn) as of September 30, 2014 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 14: Credit Ratings
Credit Ratings Standard & Moody’s Fitch Rating and Japan Credit As of October 28, 2014 Poor’s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa1 A- A+ AA- Short-term A-2 - F1 a-1 - Outlook stable Stable Stable stable stable Nomura Securities Co., Ltd. Long-term A- A3 A- A
Slide 15: Financial Supplement
Financial Supplement
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen March 31, September 30, March 31, September 30, Increase/(Decrease) Increase/(Decrease) 2014 2014 2014 2014 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 602,131 609,481 7,350 Cash and cash equivalents 1,489,792
Slide 17: Consolidated Income
Consolidated Income Full Year Quarter FY2013/14 FY2014/15 (billions of yen) FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Revenue Commissions 359.1 474.6 105.6 121.4 89.9 96.3 112.1 Fees from investment banking 62.4 91.3 23.0 15.8 27.2 19.8 20.6 Asset management and portfolio service fees 141.0 167.2 40.7 42.1
Slide 18: Consolidated Results: 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 (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Retail 100.6 192.0 40.0 47.7 23.3 31.6 38
Slide 19: Retail Related Data
Retail Related Data Full Year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 QoQ YoY 2Q 3Q 4Q 1Q 2Q Commissions 225.9 301.7 66.5 78.3 46.5 56.1 68.8 22.7% 3.5% Sales credit 80.9 106.1 24.3 25.7 26.4 25.0 25.9 3.6% 6.9% Fees from investment banking and other 36.8 40.3 13.4 8.0 9.1
Slide 20: Segment "Other"
Segment “Other” Income (loss) before Income Taxes Full Year Quarter (billions of yen) (billions of yen) 40 40 34.2 20.0 20 20 6.6 2.6 2.5 0 0 -3.5 -3.7 -20 -20 FY2013/14 FY2014/15 FY2012/13 FY2013/14 2Q 3Q 4Q 1Q 2Q Net gain (loss) related to economic 1.0 17.4 -1.7 5.2 6.5 6.9 2.2 hedging transaction
Slide 21: Value at Risk
Value at Risk Definition From April 1, 2014 to September 30, 2014 (billions of yen) − 99% confidence level − Maximum: 9.8 − 1-day time horizon for outstanding portfolio − Minimum: 4.5 − Inter-product price fluctuations considered − Average: 6.9 (billions of yen) FY2012/13 FY2013/14 FY2013/14 FY2
Slide 22: Number of Employees
Number of Employees FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Sep Dec Mar Jun Sep Japan (excluding FA) 14,123 14,149 14,454 14,308 14,149 14,559 14,391 Japan (FA) 1,907 1,888 1,923 1,918 1,888 1,889 1,853 Europe 3,618 3,461 3,459 3,456 3,461 3,481 3,530 Americas 2,271 2,281 2,243 2,248 2,281 2
Slide 23: 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 24: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com