Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (April 2012)
25 slides from Nomura's debt investor presentation, April 2012
Slide 1: Creditor Presentation
Creditor Presentation Fourth Quarter, Fiscal Year Ended March 2012 April 2012 © Nomura
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
Slide 3: Table of Contents
Table of Contents Executive Summary Overview of Results Retail, Asset Management, Wholesale Realigning to New Environment Balance Sheet Management, Exposure to European Peripheral Countries, Liquidity, Funding Profile Robust Financial Position Progress of Cost Reduction Program, Non-In
Slide 4: Executive Summary
Executive Summary FYE 2012 Fourth Quarter All business segments profitable at pretax level; Firm-wide revenues and pretax income up QoQ and YoY – Net revenue: Y499.0bn (+23% QoQ; +67% YoY) – Income before income taxes: Y60.8bn (+76% QoQ; +62% YoY) – Net income1: Y22.1bn (+24% QoQ; +86% YoY) Financ
Slide 5: Overview of Results
Overview of Results Quarter Full Year Key Points FYE FYE2012 (JPY bn) 2011 FYE FYE Fourth Quarter Results QoQ YoY YoY (USD bn) 2011 2012 Retail: Net revenue of Y92.4bn (+16% QoQ); Income before 4Q 1Q 2Q 3Q 4Q income taxes of Y20.3bn (+101% QoQ) Net revenue 299.4 330.4 301.6 404.9 499.0 +23% +67% 1
Slide 6: Retail
Retail Net Revenue and Income Before Income Taxes Key Points Quarter Full Year Fourth Quarter Results Revenues and pretax income up QoQ: Retail investors showed higher risk (JPY bn) FYE appetite as market conditions improved (USD bn) FYE2012 FYE FYE 2011 QoQ YoY YoY – Expanded product offering to
Slide 7: Asset Management
Asset Management Net Revenue and Income Before Income Taxes 1 Key Points Quarter Full Year Fourth Quarter Results Revenues increased QoQ as assets under management grew by Y2trn from the end (JPY bn) FYE of December to Y24.6trn at the end of March (USD bn) FYE2012 FYE FYE 2011 QoQ YoY YoY Investme
Slide 8: Wholesale
Wholesale Net Revenue and Income (Loss) Before Income Taxes Key Points Fourth Quarter Results Quarter Full Year EMEA revenues of Y55.4bn at highest level in four quarters (JPY bn) FYE Americas reported strongest quarterly revenues (Y43.4bn) since April 2009 (USD bn) FYE2012 FYE FYE 2011 QoQ YoY
Slide 9: Wholesale: Global Markets
Wholesale: Global Markets Net Revenue and Income (Loss) Before Income Taxes Key Points Fourth Quarter Results Quarter Full Year Net revenue: Y139.3bn (+17% QoQ; +2% YoY) Income before income taxes: Y20.2bn (+140% QoQ; +75% YoY) FYE FYE2012 2011 FYE FYE (JPY bn) QoQ YoY YoY Trading revenue incr
Slide 10: Wholesale: Investment Banking
Wholesale: Investment Banking Net Revenue and Income (Loss) Before Income Taxes Key Points Fourth Quarter Results Quarter Full Year Gross revenue1: Y40.5bn (-10% QoQ; -26% YoY) Loss before income taxes: Y7.6bn FYE FYE2012 2011 FYE FYE Japan and international businesses both maintained momentum
Slide 11: Realigning to New Environment
Realigning to New Environment Challenges facing global financial institutions Our progress Highly liquid, healthy balance sheet — Nearly 78% of assets are highly liquid trading related assets Disciplined risk management Ensure healthy balance sheet — Level 3 assets at 30% of Tier 1 capital Amp
Slide 12: Balance Sheet Management
Balance Sheet Management Balance Sheet Composition Level 3 Assets2 and Net Level 3 Assets / Tier 1 Capital (JPY bn) Balance sheet Level 3 assets (Mar 31, 2011) Assets Liabilities and Equity Net Level 3 Assets 1,500 Net Level 3 Assets / Tier 1 Capital 60% Trading Liabilities Approx. and Related1 56%
Slide 13: Exposure to European Peripheral Countries
Exposure to European Peripheral Countries GIIPS Country Exposure (as of Mar 31, 2012) (Preliminary) (US$m) Net Change Change Net inventory 1 Net counterparty exposur from Dec from Sep e total 2011 2011 Ireland Total net GIIPS country exposure Of Of Of Sep 2011 US$3,554m which, which, 513 exposure ex
Slide 14: Liquidity
Liquidity Liquidity Portfolio1 Liquidity Portfolio % to Total Assets Breakdown (Mar 2012) (US$bn) By Currency By Instrument 15% 16% 15% Others Others 8% 5% 70 10% 10% 66 JPY Deposit EUR 20% 27% 15% 53 GBP 9% Reverse Repo 75% 26 26 USD 41% Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Ample liquidit
Slide 15: Funding Profile
Funding Profile Unsecured Funding1: 80% Long-Term Debt; Diversified Funding Sources Long-Term Debt Profile2 (US$bn) By Region 27.6 Non Japan 12 Current Senior loans Bank lending market 20% ～ Portion of 10 Long-Term Subordinated Short-Term Debt loans Debt 11% Japan Subordinated 8 20% 80％ bonds/Retail
Slide 16: Robust Financial Position
Robust Financial Position Balance sheet related indicators and capital ratios Tier 1 Capital, Tier 1 Capital Ratio2 (JPY bn) Tier 1 Capital Tier 1 Ratio (JPY) (USD) 4,000 20% Basel 2 basis Basel 2.5 basis Total assets Y35.7trn $433bn 3,000 15% Shareholders‟ equity Y2.1trn $25.6bn Gross leverag
Slide 17: Progress of Cost Reduction Program
Progress of Cost Reduction Program Timeline of $1.2bn cost reduction program Wholesale (JPY bn) Net revenue Non-interest expenses Income(loss) before income taxes Total of $1.2bn FYE2012 3Q FYE2012 4Q FYE2013 2H 500 Retail, 400 Retail, 100% AM AM 20% 300 200 100 Nov 2011 Wholesale: Personnel expense
Slide 18: Non-Interest Expenses
Non-Interest Expenses Full Year Quarter Key Points (JPY bn) (JPY bn) Fourth Quarter Results Non-interest expenses: Y438.2bn (+18% 1,500 1,450.9 Other QoQ) 500 – Other expenses increased 49% QoQ Business 438.2 1,200 development 1,092.9 due to a rise in cost of goods sold at expenses 1,045.6 1,037.4
Slide 19: Appendix
NOMURA Appendix
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen March 31, March 31, March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2012 2011 2012 2011 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 1,185,613 1,167,077 18,536 Cash and cash equivalents 1,070,520 1,
Slide 21: Value at Risk
Value at Risk Definition From April 1, 2011 to March 31, 2012 (JPY bn) 99% confidence level (2.33 standard dev.) Maximum: 9.7 1-day time horizon for outstanding portfolio Minimum: 4.9 Inter-product price fluctuations considered Average: 6.5 (JPY bn) Mar. 31, Mar. 31, Mar. 31, Mar. 31
Slide 22: Consolidated Income
Consolidated Income Full Year Quarter (JPY bn) FYE2011 FYE2012 FYE2008 FYE2009 FYE2010 FYE2011 FYE2012 4Q 1Q 2Q 3Q 4Q Revenue Commissions 404.7 306.8 395.1 405.5 347.1 103.8 96.8 85.9 74.0 90.4 Fees from investment banking 85.1 55.0 121.3 107.0 59.6 27.8 13.8 13.8 17.2 14.8 Asset management and port
Slide 23: Segment “Other”
Segment “Other” Income (loss) before income taxes Full Year Quarter (JPY bn) (JPY bn) 40 35.1 40 21.0 15.4 13.9 0 0 -18.1 -17.8 -12.9 -15.2 -40 -40 -80 -62.1 -80 -120 -120 -160 -160 -200 -200 -207.9 -240 -240 FYE2011 FYE2012 FYE2008 FYE2009 FYE2010 FYE2011 FYE2012 4Q 1Q 2Q 3Q 4Q Net gain (loss) rela
Slide 24: Number of Employees
Number of Employees Mar. 31, 2008 Mar. 31, 2009 Mar.31,2010 Mar. 31,2011 Jun. 30,2011 Sep. 30,2011 Dec. 31,2011 Mar. 31,2012 Japan (excluding FA)1 11,561 12,929 12,857 12,829 20,263 20,105 19,882 19,598 Japan (FA)2 2,377 2,391 2,196 2,089 2,096 2,078 2,048 2,011 Europe 1,956 4,294 4,369 4,353 4,436
Slide 25: Credit Ratings
Credit Ratings Standard & Moody’s 1 Rating and Japan Credit As of Mar 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 stable stable Nomura Securities Co., Ltd. Long-term A- Baa2 A+ AA- Short-term A-2 P
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