Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (February 2016)

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

  1. Slide 1: Creditor Presentation Third quarter, year ending March 2016

    Connecting Markets East & West Creditor Presentation Third quarter, year ending March 2016 (US GAAP) Nomura Holdings, Inc. February 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 Highlights Income before income taxes and net income2 1Q – 3Q FY2015/16 Group-wide Income before income taxes (billions of yen) Net income  Three segment total net revenue and income before income taxes both up YoY 116.1 105.0 106.0  Group-wide income before income taxes declined

  4. Slide 4: Overview of results

    Overview of results Highlights (billions of yen, except EPS and ROE) FY2015/16 FY2015/16 QoQ YoY YoY 3Q 1-3Q Net revenue 354.9 [$3.0bn] +5% -16% 1,115.5 [$9.3bn] -5% Non-interest expenses 303.3 [$2.5bn] -4% -2% 938.0 [$7.8bn] +1% Income before income taxes 51.6 [$429m] +160% -56% 177.5 [$1.5bn] -27%

  5. Slide 5: Business segment results

    Business segment results Net revenue and income before income taxes (billions of yen) FY2015/16 FY2015/16 QoQ YoY YoY 3Q 1-3Q Net Retail 104.3 [$867m] -10% -19% 350.6 [$2.9bn] -1% revenue Asset Management 25.3 [$210m] +11% +8% 75.1 [$623m] +10% Wholesale 186.0 [$1.5bn] -4% +4% 584.1 [$4.9bn] +5% Sub

  6. Slide 6: Retail

    Retail Net revenue and income before income taxes Key points (billions of yen)  Net revenue: Y104.3bn [$867m] (-10% QoQ; -19% YoY)  Income before income taxes: Y27.8bn [$231m] (-24% QoQ; -45% YoY) FY2014/15 FY2015/16 QoQ YoY  Revenue and income before income taxes both down QoQ 3Q 4Q 1Q 2Q 3Q − I

  7. Slide 7: Retail: Client franchise continues to grow

    Retail: Client franchise continues to grow Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis)  Annualized recurring revenue: Y76.8bn [$0.6bn] 100.0 Recurring revenue cost coverage ratio (rhs) 30% – AuM in discretionary investments increased driven by net inflows, whi

  8. Slide 8: Asset Management

    Asset Management Net revenue and income before income taxes Key points (billions of yen)  Net revenue: Y25.3bn [$210m] (+11% QoQ; +8% YoY) FY2014/15 FY2015/16  Income before income taxes: Y10.7bn [$89m] (+28% QoQ; +15% YoY) QoQ YoY 3Q 4Q 1Q 2Q 3Q − AuM at record high driven by market factors combi

  9. Slide 9: Asset Management: International business growth

    Asset Management: International business growth Nomura Asset Management public investment trust market Assets under management (net)1 by business share2 (trillions of yen) 26.0% 50.0 Investment trust business Investment advisory business 24.9% 24.9% 41.4 42.2 [$351bn] 24.6% 39.3 40.0 40.0 37.7 24.0%

  10. Slide 10: Wholesale

    Wholesale Net revenue and income before income taxes Key points (billions of yen)  Net revenue: Y186.0bn [$1.5bn] (-4% QoQ; +4% YoY) FY2014/15 FY2015/16  Income before income taxes: Y9.9bn [$82m] (+15% QoQ; 22.0x YoY) QoQ YoY 3Q 4Q 1Q 2Q 3Q  Revenues down QoQ Global Markets 149.7 199.0 176.2 158.

  11. Slide 11: Wholesale: Global Markets

    Wholesale: Global Markets Net revenue1 FY2015/16 3Q net revenue by region (billions of yen) Equities YoY QoQ Fixed Income 199.0 176.2 Global Global Markets 158.7 157.2 [$1.3bn] 149.7 Markets 81.7 Fixed Income Equities 92.1 74.7 75.5 76.9 [$639m] Americas 117.4 75.0 84.1 83.2 80.2 [$667m] EMEA FY2014

  12. Slide 12: Wholesale: Investment Banking

    Wholesale: Investment Banking Net revenue Continued to win many high-profile mandates in 3Q Investment banking (gross) (billions of yen)  Played key role on major deals including Japan Post Group 52.7 57.3 49.7 63.1 34.4[$0.3bn] IPOs and Chinese corporate listings in Hong Kong  Supported financial

  13. Slide 13: Non-interest expenses

    Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen)  Non-interest expenses: Y303.3bn [$2.5bn] 400 (-4% QoQ) 1,500 Other [$2.5bn] 1,257.4 329.6 – Compensation and benefits (-5% QoQ) 1,195.5 318.0 316.7 308.9 303.3 1,200 300  Down as a result of cost reductions and

  14. Slide 14: Robust financial position

    Robust financial position Balance sheet related indicators and capital ratios Risk weighted assets3 and Tier 1 capital ratio Mar 2015 Sep 2015 Dec 2015 (trillions of yen) RWA (Basel 3) (lhs) Tier 1 capital ratio (Basel 3) (rhs)  Total assets Y41.8trn Y44.0trn Y43.5trn $0.4trn 20.0 20.0% 15.1% 14.5%

  15. Slide 15: Funding and liquidity

    Funding and liquidity Balance sheet (As of Dec 2015) Funding Profile Balance sheet structure Assets Liabilities and equity  Conservative Funding Profile  Highly liquid, healthy balance sheet structure – More than 80% of unsecured funding2 is – 81% of assets are highly liquid long-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 JPY6.5 trillion [$53.9bn] as of December 31, 2015 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 diversifie

  18. Slide 18: Credit Ratings

    Credit Ratings Standard & Moody’s Fitch Rating and Japan Credit As of February 2, 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 Stable 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, December 31, March 31, December 31, Increase/(Decrease) Increase/(Decrease) 2015 2015 2015 2015 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 662,256 503,578 (158,678) Cash and cash equivalents 1,315,4

  21. Slide 21: Consolidated income

    Consolidated income Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 3Q 4Q 1Q 2Q 3Q Revenue Commissions 473.1 453.4 123.2 123.7 130.3 111.5 102.3 Fees from investment banking 91.3 95.1 28.8 25.8 24.5 44.9 20.0 Asset management and portfolio service fees 168.7 203.4 53.3 54

  22. Slide 22: 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 FY2014/15 FY2015/16 (billions of yen) FY2013/14 FY2014/15 3Q 4Q 1Q 2Q 3Q Retail 192.0 161.8 50.5 40.9 50.9 36.7 27

  23. Slide 23: Retail related data

    Retail related data Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 QoQ YoY 3Q 4Q 1Q 2Q 3Q Commissions 297.2 258.9 69.8 67.7 73.8 55.8 51.8 -7.2% -25.8% Of which, brokerage commission 115.4 81.8 25.1 22.6 26.4 20.0 18.0 -10.1% -28.3% Of which, commissions for distribution

  24. Slide 24: Asset Management related data

    Asset Management related data Full year Quarter FY2014/15 FY2015/16 (billions of yen) FY2013/14 FY2014/15 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 80.5 92.4 23.4 23.9 26.9 22.9 25.3 10.8% 8.1% Non-interest expenses 53.4 60.3 14.1 17.2 15.2 14.4 14.6 1.1% 3.6% Income before income taxes 27.1 32.1 9.3 6.7 1

  25. Slide 25: Wholesale related data

    Wholesale related data Wholesale Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2013/14 FY2014/15 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 765.1 789.9 178.9 231.5 205.2 192.9 186.0 -3.6% 3.9% Non-interest expenses 653.3 707.7 178.5 177.7 185.5 184.3 176.0 -4.5% -1.4% Income before income taxes

  26. Slide 26: Segment “Other”

    Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 50.0 46.0 44.8 40.0 30.0 20.0 20.0 14.7 10.0 0.0 -10.0 -4.0 -1.6 -20.0 -30.0 -23.0 1 2 1 2 3 4 5 FY2014/15 FY2015/16 FY2013/14 FY2014/15 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic 17.4 15.1 6.4 -0.3 -2.6 1.

  27. Slide 27: Value at risk

    Value at risk  Definition  From April 1, 2015 to December 31, 2015 (billions of yen) − 99% confidence level − Maximum: 9.1 − 1-day time horizon for outstanding portfolio − Minimum: 3.5 − Inter-product price fluctuations considered − Average: 5.5 (billions of yen) FY2013/14 FY2014/15 FY2014/15 FY20

  28. Slide 28: Number of employees

    Number of employees FY2013/14 FY2014/15 FY2014/15 FY2015/16 Mar Mar Dec Mar Jun Sep Dec Japan 16,037 15,973 16,143 15,973 16,570 16,381 16,282 Europe 3,461 3,485 3,539 3,485 3,492 3,494 3,433 Americas 2,281 2,449 2,445 2,449 2,439 2,514 2,501 Asia and Oceanea1 5,891 6,765 6,762 6,765 6,788 6,862 6,8

  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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