Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (January 2013)

23 slides from Nomura's debt investor presentation, January 2013

  1. Slide 1: Creditor Presentation

    Creditor Presentation Third Quarter, Fiscal Year Ending March 2013 Nomura Holdings, Inc. January 2013 © 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  Breakdown of Income Before Income Taxes and Net Income  Retail, Asset Management, Wholesale  Non-Interest Expenses  Progress of Cost Reduction Program  Balance Sheet Management  Exposure to European Peripheral Countries, Level 3 Asse

  4. Slide 4: Executive Summary

    Executive Summary  Net revenue: Y389.1bn ($4.5bn, -3% QoQ) – Three business segments reported higher revenues; firm-wide revenues were down slightly QoQ  Main factors behind firm-wide decline include a 16% decrease in revenues at consolidated entities related to Nomura Land and Building and losses

  5. Slide 5: Overview of Results

    Overview of Results Quarter Fiscal Year to Date Key Points FYE2012 FYE2013  Retail (JPY bn) QoQ YoY QoQ YoY – Net revenue Y95.7bn (+18% QoQ) (USD bn) – Income before income taxes Y20.3bn (+85% QoQ) 3Q 4Q 1Q 2Q 3Q  Favorable market conditions led to improved risk appetite 389.1 1,160.0 among retail

  6. Slide 6: Breakdown of Income Before Income Taxes and Net Income

    Breakdown of Income Before Income Taxes and Net Income (billions of yen) Loss related to changes to Write-down of real estate own and counterparty mainly held by consolidated credit spreads variable interest entities1 71.9 4.6x Wholesale 44.4 -23.2 Includes Y19.5bn related to write-down of real esta

  7. Slide 7: Retail

    Retail Net Revenue and Income Before Income Taxes Key Points FYE2012 FYE2013 QoQ YoY  Net revenue and income before income taxes both higher QoQ as retail (JPY bn) (USD bn) 3Q 4Q 1Q 2Q 3Q investor risk appetite increased due to favorable market conditions – Stronger sales driven by stocks and inves

  8. Slide 8: Asset Management

    Asset Management Net Revenue and Income Before Income Taxes Key Points  Improved investment environment and inflows led to higher assets under (JPY bn) FYE2012 FYE2013 management (USD bn) QoQ YoY  Performance fees and other factors also contributed to highest quarterly income 3Q 4Q 1Q 2Q 3Q before

  9. Slide 9: Wholesale

    Wholesale Net Revenue and Income (Loss) Before Income Taxes1 Key Points  Revenues up QoQ in all business lines and regions; Rebound in income before income FYE2012 FYE2013 taxes (JPY bn) QoQ YoY (USD bn) 3Q 4Q 1Q 2Q 3Q  Fixed Income remained key driver: Tapped into uptick in client activity driven

  10. Slide 10: Non-Interest Expenses

    Non-Interest Expenses Full Year Quarter Key Points (billions of yen) (billions of yen)  Non-interest expenses: Y376.1bn 1,500 1,450.9 Other (+3% QoQ) 500 438.2 Business development  Compensation and benefits (+1% QoQ) expenses 1,200 400 – One-off charge of Y3.9bn related to 1,037.4 370.5 366.3 376

  11. Slide 11: Progress of Cost Reduction Program: Fit for the Future

    Progress of Cost Reduction Program: Fit for the Future Timeline of $1bn Cost Reduction Program Progress  Additional $1bn cost reductions announced in Announced in Sep 2012: $1bn FYE2013 FYE2013 FYE2014 Sep 2012 are progressing as planned 2Q 2H – Significant reduction in cost base: Lower break- Japa

  12. Slide 12: Balance Sheet Management

    Balance Sheet Management Balance Sheet Composition Balance Sheet Funding Profile (December 2012)  Highly Liquid, Healthy Balance Sheet  Conservative Funding Profile – 80% of assets are highly liquid Assets Liabilities / Equity – Approx. 80% of unsecured funding3 trading and related assets that are

  13. Slide 13: Exposure to European Peripheral Countries, Level 3 Assets

    Exposure to European Peripheral Countries, Level 3 Assets GIIPS Country Exposure (preliminary, as of December 31, 2012) Level 3 Assets3 and Net Level 3 Assets/Tier 1 Capital (JPY tn) Trading Assets Level 3 Assets Net Changes Net 2 (US$m) Net counter party exposure from Sep 20 Net Level 3 Assets Net

  14. Slide 14: Liquidity Portfolio

    Liquidity Portfolio Firm-Wide Liquidity Management Liquidity Portfolio1: JPY5.5tn($64bn), 14% of Total Assets  Liquidity Stress Test ~ Quantify Liquidity Risk Tolerance Breakdown (December 2012) – The firm carries out its liquidity stress test daily in order to maintain adequate liquidity to withst

  15. Slide 15: Funding Profile

    Funding Profile Unsecured Funding1: Nearly 80% Long-Term Debt; Diversified Funding Sources Long-Term Debt Profile2 (US$bn) By Region 25 Non Short-Term Japan Debt 20% 19% 20 Current Portion of Japan Long-Term Debt Loans 80% Bank 15 Maintain an adequate liquidity 8% (including Lending portfolio for po

  16. Slide 16: Robust Financial Position

    Robust Financial Position Balance Sheet-Related Indicators and Capital Ratios Tier 1 Capital, Tier 1 Capital Ratio3 (Sep 2012) (Dec 2012) (JPY tn) Tier 1 Capital Tier 1 Ratio 4 20%  Total assets Y35.4tn Y38.6tn 3 15% ($445bn)  Shareholders‟ equity Y2.1tn Y2.2tn 2 10% ($25bn) 1 5%  Gross leverage

  17. Slide 17: Appendix

    NOMURA Appendix

  18. Slide 18: Consolidated Balance Sheet

    Consolidated Balance Sheet Millions of yen Millions of yen March 31, December 31, March 31, December 31, Increase/(Decrease) Increase/(Decrease) 2012 2012 2012 2012 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 1,185,613 933,756 (251,857) Cash and cash equivalents 1,070

  19. Slide 19: Consolidated Income

    Consolidated Income Full Year Quarter (billions of yen) FYE2012 FYE2013 FYE2011 FYE2012 3Q 4Q 1Q 2Q 3Q Revenue Commissions 405.5 347.1 74.0 90.4 77.4 72.3 83.7 Fees from investment banking 107.0 59.6 17.2 14.8 10.4 17.1 13.0 Asset management and portfolio service fees 143.9 144.3 33.4 35.1 33.8 33.4

  20. Slide 20: Segment "Other"

    Segment “Other” Income (Loss) Before Income Taxes Full Year Quarter (billions of yen) (billions of yen) 40 35.2 40 17.0 20 14.6 20 7.3 0 0 -20 -15.2 -20 -14.5 -40 -40 -60 -60 -67.9 -80 -80 FYE2012 FYE2013 FYE2011 FYE2012 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic 2.3 8.4 7.7 -2.1 -1.2 1.0 0.

  21. Slide 21: Value at Risk

    Value at Risk  Definition  From April 1, 2012 to December 31, 2012 (billions of yen)  99% confidence level  Maximum: 8.7  1-day time horizon for outstanding portfolio  Minimum: 4.3  Inter-product price fluctuations considered  Average: 6.2 (billions of yen) Mar. 31, Jun. 30, Sep. 30, Dec. 31

  22. Slide 22: Number of Employees

    Number of Employees Mar. 31,2011 Jun. 30,2011 Sep. 30,2011 Dec. 31,2011 Mar. 31,2012 Jun. 30,2012 Sep. 30,2012 Dec. 31,2012 Japan (excluding FA)1 12,829 20,263 20,105 19,882 19,598 20,197 20,039 19,877 Japan (FA) 2,089 2,096 2,078 2,048 2,011 2,014 1,981 1,951 Europe 4,353 4,436 4,492 4,143 4,014 3,

  23. Slide 23: Credit Ratings

    Credit Ratings Standard & Moody‟s 1 Rating and Japan Credit As of December 31, 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-ter

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