Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (July 2016)

30 slides from Nomura's debt investor presentation, July 2016

  1. Slide 1: Creditor Presentation, First quarter, year ending March 2017

    Connecting Markets East & West Creditor Presentation First quarter, year ending March 2017 (US GAAP) Nomura Holdings, Inc. July 2016 © Nomura

  2. Slide 2: Outline

    Outline Presentation Financial Supplement  Executive summary (p. 2)  Consolidated balance sheet (p.19)  Overview of results (p. 3)  Consolidated income (p. 20)  Business segment results (p. 4)  Consolidated results: Income (loss) before income taxes by segment and region (p. 21)  Retail (p. 5

  3. Slide 3: Executive summary

    Executive summary Income (loss) before income taxes and net FY2016/17 1Q highlights income (loss)1 Group (billions of yen)  Income before income taxes and net income both up strongly QoQ – Net revenue: Y338.5bn [$3.3bn]; Income before income taxes: Y62.8bn [$611m]; Net income1: Income (loss) before

  4. Slide 4: Overview of results

    Overview of results Highlights (billions of yen, except EPS and ROE) FY2016/17 FY2015/16 FY2015/16 QoQ YoY 1Q 4Q 1Q Net revenue 338.5 [$3.3bn] 280.1 [$2.7bn] +21% 424.0 [$4.1bn] -20% Non-interest expenses 275.7 [$2.7bn] 292.5 [$2.8bn] -6% 318.0 [$3.1bn] -13% Income (loss) before income 62.8 [$611m]

  5. Slide 5: Business segment results

    Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2016/17 FY2015/16 FY2015/16 QoQ YoY 1Q 4Q 1Q Net revenue Retail 83.8 [$815m] 85.0 [$827m] -1% 130.7 [$1.3bn] -36% Asset Management 25.9 [$252m] 20.3 [$198m] +28% 26.9 [$262m] -4% Wholesale 190.9 [$1.9bn] 1

  6. Slide 6: Retail

    Retail Net revenue and income before income taxes Key points (billions of yen)  Net revenue: Y83.8bn[$815m] (-1% QoQ; -36% YoY) FY2016  Income before income taxes: Y8.7bn[$85m] (-29% QoQ; -83% YoY) FY2015/16 /17 QoQ YoY 1Q 2Q 3Q 4Q 1Q  Revenues remained soft − Choppy market conditions prompted in

  7. Slide 7: Retail: Continued focus on providing consulting services

    Retail: Continued focus on providing consulting services Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis)  Annualized recurring revenue of Y71.3bn Recurring revenue cost coverage ratio (rhs) 100.0 30% – Proactive dialog and discussions on discretionary investments

  8. Slide 8: Asset Management

    Asset Management Net revenue and income before income taxes Key points (billions of yen) FY2016  Net revenue: Y25.9bn[$252m] (+28% QoQ; -4% YoY) FY2015/16 /17  Income before income taxes: Y12.2bn[$119m] (+112% QoQ; +4% YoY) QoQ YoY 1Q 2Q 3Q 4Q 1Q − Significantly stronger revenues QoQ from dividend

  9. Slide 9: Asset Management: Expanding business platform

    Asset Management: Expanding business platform 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% 50.0 24.9% 24.9% 24.8% 41.4 42.2 24.6% 40.0 40.1 40.0 37.3 [$363bn] 2

  10. Slide 10: Wholesale

    Wholesale Net revenue and income (loss) before income taxes Key points (billions of yen) FY2016 FY2015/16  Net revenue: Y190.9bn[$1.9bn] (+40% QoQ; -7% YoY) /17 QoQ YoY  Income before income taxes: Y46.6bn[$45m] (+137% YoY) 1Q 2Q 3Q 4Q 1Q  Revenues up significantly QoQ Global Markets 176.2 158.7

  11. Slide 11: Wholesale: Global Markets

    Wholesale: Global Markets Net revenue FY2016/17 1Q net revenue by region (billions of yen) Equities Fixed Income YoY QoQ QoQ 176.2 158.7 170.5 [$1.7bn] +57% Global Global Markets 157.2 YoY Markets Fixed Equities 62.6 [$609m] -3% Income 92.1 108.3 75.5 76.9 Americas 80.7 107.9 [$1.0bn] 84.1 83.2 80.2

  12. Slide 12: Wholesale: Investment Banking

    Wholesale: Investment Banking Net revenue Focusing on areas of competitive strength Investment Banking (gross) (billions of yen) 49.7 63.1 34.4 47.0 33.9 [$330m] M&A Financing Investment Banking (net) Other  Business growth driven out of Asia including Japan 34.2 QoQ  Won numerous deals for indust

  13. Slide 13: Non-interest expenses

    Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen)  Non-interest expenses: Y275.7bn[$2.7bn] 1,500 (-6% QoQ; -13% YoY) 400 1,257.4 1,230.5 Other 318.0 316.7 1,200 303.3 [$2.7bn]  Group expenses down QoQ due to yen 292.5 275.7 300 appreciation and lower non-person

  14. Slide 14: Robust financial position

    Robust financial position Balance sheet related indicators and capital ratios Risk weighted assets3 and CET 1 capital ratio4 Mar 2016 Jun 2016 (trillions of yen) RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) 20.0 20.0%  Total assets Y41.1trn Y42.9trn $417bn 15.4% 16.3% 15.5% 15.1% 13.5% 13

  15. Slide 15: Funding and liquidity

    Funding and liquidity Balance sheet (As of June 2016) Funding Profile Balance sheet structure Assets Liabilities and equity  Conservative Funding Profile  Highly liquid, healthy balance sheet structure – Approx.80% of unsecured funding2 is long- – 80% of assets are highly liquid term debt trading

  16. Slide 16: 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

  17. Slide 17: Liquidity portfolio

    Liquidity portfolio  The firm’s liquidity portfolio1 was approximately JPY5.5 trillion [$53.5bn] as of June 30, 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 ac

  18. Slide 18: Credit ratings

    Credit ratings Standard & Moody’s Fitch Rating and Japan Credit As of June 30, 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 Negative Stable Stable Nomura Securities Co., Ltd. Long-term A- A3 A-

  19. Slide 19: Financial Supplement

    Financial Supplement

  20. Slide 20: Consolidated balance sheet

    Consolidated balance sheet Millions of yen Millions of yen March 31, June 30, Increase/ March 31, June 30, Increase/ 2016 2016 (Decrease) 2016 2016 (Decrease) ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 662,902 722,950 60,048 Cash and cash equivalents 3,476,261 1,950,

  21. Slide 21: Consolidated income

    Consolidated income Full year Quarter FY2015/16 FY2016/17 (billions of yen) FY2014/15 FY2015/16 1Q 2Q 3Q 4Q 1Q Revenue Commissions 453.4 432.0 130.3 111.5 102.3 87.8 76.3 Fees from investment banking 95.1 118.3 24.5 44.9 20.0 29.0 17.3 Asset management and portfolio service fees 203.4 229.0 59.9 58.

  22. Slide 22: 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 FY2015/16 FY2016/17 (billions of yen) FY2014/15 FY2015/16 1Q 2Q 3Q 4Q 1Q Retail 161.8 127.6 50.9 36.7 27.8 12.2 8.

  23. Slide 23: Retail related data (1)

    Retail related data (1) Full year Quarter (billions of yen) FY2015/16 FY2016/17 FY2014/15 FY2015/16 QoQ YoY 1Q 2Q 3Q 4Q 1Q Commissions 258.9 220.3 73.8 55.8 51.8 38.9 38.4 -1.2% -48.0% Of which, brokerage commission 81.8 78.9 26.4 20.0 18.0 14.4 13.1 -9.1% -50.4% Of which, commissions for distributi

  24. Slide 24: Asset Management related data (1)

    Asset Management related data (1) Full year Quarter FY2015/16 FY2016/17 (billions of yen) FY2014/15 FY2015/16 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 92.4 95.4 26.9 22.9 25.3 20.3 25.9 27.7% -3.7% Non-interest expenses 60.3 58.7 15.2 14.4 14.6 14.5 13.7 -5.8% -9.7% Income before income taxes 32.1 36.7 11

  25. Slide 25: Wholesale related data

    Wholesale related data Full year Quarter (billions of yen) FY2015/16 FY2016/17 FY2014/15 FY2015/16 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 789.9 720.3 205.2 192.9 186.0 136.2 190.9 40.2% -6.9% Non-interest expenses 707.7 704.9 185.5 184.3 176.0 159.0 144.3 -9.3% -22.2% Income (loss) before income taxes 8

  26. Slide 26: 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 5.8 0.0 -10.0 -1.6 -20.0 -30.0 -23.0 1 2 1 2 3 4 5 FY2015/16 FY2016/17 FY2014/15 FY2015/16 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic 15.1 6.4 -2.6 1.1 -0.6 8.5 1

  27. Slide 27: Value at risk

    Value at risk  Definition  From April 1, 2016, to June 30, 2016 (billions of yen) − 99% confidence level − Maximum: 6.7 − 1-day time horizon for outstanding portfolio − Minimum: 3.4 − Inter-product price fluctuations considered − Average: 5.1 (billions of yen) FY2014/15 FY2015/16 FY2015/16 FY2016/

  28. Slide 28: Number of employees

    Number of employees FY2014/15 FY2015/16 FY2015/16 FY2016/17 Mar Mar Jun Sep Dec Mar Jun Japan 15,973 16,083 16,570 16,381 16,282 16,083 16,792 Europe 3,485 3,424 3,492 3,494 3,433 3,424 3,170 Americas 2,449 2,503 2,439 2,514 2,501 2,503 2,481 Asia and Oceania1 6,765 6,855 6,788 6,862 6,853 6,855 6,7

  29. Slide 29: 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

  30. Slide 30: Nomura Holdings, Inc.

    Nomura Holdings, Inc. www.nomura.com

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