Nomura Holdings, Inc. · TSE:8604
Nomura — Q1 FY2014/15 Earnings Presentation
24 slides from Nomura's earnings presentation, August 2014
Slide 1: Creditor Presentation First quarter, year ending March 2015
Connecting Markets East & West Creditor Presentation First quarter, year ending March 2015 Nomura Holdings, Inc. August 2014 © Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive Summary (p. 3) Consolidated Balance Sheet (p. 16) Overview of Results (p. 4) Consolidated Income (p. 17) Retail (p. 5) Consolidated Results: Income (loss) Before Income Taxes by Asset Management (p. 6) Segment and Region (p. 18) Who
Slide 3: Executive Summary
Executive Summary Group highlights Income before income taxes Solid net revenue from three business segments as Retail and Asset Management posted higher revenues QoQ and Wholesale revenues remained resilient Group (billions of yen) – Group net revenue declined QoQ on a loss of Y7.1bn from changes
Slide 4: Overview of Results
Overview of Results Quarter Result Key Figures (billions of YEN) FY2013/14 FY2014/15 FY2013/14 Retail QoQ YoY (billions of USD) 4Q 1Q 1Q Net revenue: Y106.9bn (+9% QoQ; -36% 370.8 YoY) Net revenue 389.9 $3.7 -5% 431.3 -14% Income before income taxes: Y31.6bn Retail 97.9 106.9 +9% 166.3 -36% (+36
Slide 5: Retail
Retail Net revenue and income before income taxes Key points (billions of yen) FY2013/14 FY14/15 Net revenue and income before income taxes both up QoQ; Sales of stocks QoQ YoY slowed due to lower market volumes, while investment trusts rebounded 1Q 2Q 3Q 4Q 1Q Efforts to transform business mode
Slide 6: Asset Management
Asset Management Net revenue and income before income taxes Key points (billions of yen) FY2013/14 FY14/15 Strongest revenues since quarter ended Sep 2007 driven by expansion in QoQ YoY assets under management and dividend income 1Q 2Q 3Q 4Q 1Q ING Securities Investment & Trust (Taiwan) became a
Slide 7: Wholesale
Wholesale Net revenue and income before income taxes Key points (billions of yen) FY2013/14 FY14/15 Resilient revenues QoQ YoY – Revenues remained strong roughly in line with previous quarter as Global 1Q 2Q 3Q 4Q 1Q Markets capitalized on revenue opportunities amid challenging market 166.6 condit
Slide 8: Wholesale: Global Markets and Investment Banking
Wholesale: Global Markets and Investment Banking Global Markets: Net revenue Investment Banking: Net revenue (billions of yen) Investment Banking (gross) ($0.4bn) (billions of yen) Equities 47.2 45.8 35.9 55.4 43.2 QoQ Fixed Income ($1.6bn) -0.1% Investment Banking (net) 165.3 166.8 166.6 QoQ 159.6
Slide 9: Non-interest Expenses
Non-interest Expenses Full year Quarter Key points (billions of yen) (billions of yen) Non-interest expenses: Y319.2bn Other 1,575.9 (+6% QoQ) 1,500 Business development – Compensation and benefits (+27% QoQ) 400 expenses 1,195.5 Higher bonus provisions in line with 1,200 Occupancy and 318.1 319
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) (As of June 2014) 20.0 20.0% Total assets Y43.9trn ($434bn) 13.2% 15.0 12.2% 13.0% 15.0% 11.9% 12.0% 11.9% Shar
Slide 11: Funding and Liquidity
Funding and Liquidity Balance sheet (As of Jun 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: Liquidity Portfolio
Liquidity Portfolio The firm‟s liquidity portfolio1 was approximately JPY5.6 trillion (USD55bn) as of June 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 diversified ac
Slide 13: 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 14: Credit Ratings
Credit Ratings Standard & Moody’s Fitch Rating and Japan Credit As of July 7, 2014 Poor’s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa3 A- A+ AA- Short-term A-2 - F1 a-1 - Outlook stable Review for Upgrade Stable stable stable Nomura Securities Co., Ltd. Long-term A-
Slide 15: Financial Supplement
Financial Supplement
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen March 31, June 30, March 31, June 30, Increase/(Decrease) Increase/(Decrease) 2014 2014 2014 2014 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 602,131 515,447 (86,684) Cash and cash equivalents 1,489,792 1,428,
Slide 17: Consolidated Income
Consolidated Income Full year Quarter (billions of yen) FY2013/14 FY2014/15 FY2012/13 FY2013/14 1Q 2Q 3Q 4Q 1Q Revenue Commissions 359.1 474.6 157.6 105.6 121.4 89.9 96.3 Fees from investment banking 62.4 91.3 25.4 23.0 15.8 27.2 19.8 Asset management and portfolio service fees 141.0 167.2 42.4 40.7
Slide 18: 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 FY2013/14 FY2014/15 (billions of yen) FY2012/13 FY2013/14 1Q 2Q 3Q 4Q 1Q Retail 100.6 192.0 81.1 40.0 47.7 23.3 31.6 Asset Managemen
Slide 19: 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 0 0 -3.5 -3.7 -7.0 -20 -20 FY2013/14 FY2014/15 FY2012/13 FY2013/14 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic 1.0 17.4 7.4 -1.7 5.2 6.5 6.9 hedging transactio
Slide 20: Wholesale Related Data
Wholesale Related Data Private equity related investments (billions of yen) 150 Terra Firma 104.6 107.0 102.1 100 Asia Europe (excluding Terra 61.2 57.2 57.2 58.8 Firma) Japan 50 0 FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Jun Sep Dec Mar Jun Japan 52.7 8.1 52.5 51.7 10.5 8.1 10.8 Europe (excl
Slide 21: Value at Risk
Value at Risk Definition From April 1, 2014 to June 30, 2014 (billions of yen) 99% confidence level Maximum: 9.3 1-day time horizon for outstanding portfolio Minimum: 4.7 Inter-product price fluctuations considered Average: 6.7 (billions of yen) FY2012/13 FY2013/14 FY2013/14 FY2014/1
Slide 22: Number of Employees
Number of Employees FY2012/13 FY2013/14 FY2013/14 FY2014/15 Mar Mar Jun Sep Dec Mar Jun Japan (excluding FA) 14,123 14,149 14,654 14,454 14,308 14,149 14,559 Japan (FA) 1,907 1,888 1,911 1,923 1,918 1,888 1,889 Europe 3,618 3,461 3,485 3,459 3,456 3,461 3,481 Americas 2,271 2,281 2,240 2,243 2,248 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