Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (2011)
24 slides from Nomura's debt investor presentation, 2011
Slide 1: Debt Investor Presentation, Fiscal Year Ended March 2011
Debt Investor Presentation Fiscal Year Ended March 2011 Nomura Holdings, Inc.
Slide 2: This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2011 Nomura Holdings,
This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2011 Nomura Holdings, Inc. All rights reserved. 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
Slide 3: Table of Contents
Table of Contents Overview Business Risk Ri k M Managementt Capital and Leverage Liquidity and Funding Key Metrics and Strategies Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calculated at the exchange rate of USD 1 = JPY 82.76, i.e. FRB noon rat
Slide 4: Nomura Overview
Nomura Overview ■ Leading independent investment bank based in Asia, executing the global strategy to build a world-class financial services firm – Maintain leading positions in Japan capital markets, with top market share in key segments – Growth prospects in Wholesale segment with clear focus on c
Slide 5: Overview – Fourth Quarter Results
Overview – Fourth Quarter Results (JPY bn) FYE2010 FYE2011 Highlights (USD bn) 4Q QoQ YoY 4Q 3Q 4Q (USD) Fourth Quarter highlight N t revenue Net 277.9 295.9 299.4 $3.6 1% 8% ¾ Eighth consecutive positive quarter due to resilient revenue Retail 95.5 97.5 96.2 $1.2 (1%) 1% generation and disciplined
Slide 6: Overview – Full Year Results
Overview – Full Year Results (JPY bn) FYE2010 FYE2011 FYE2011 YoY Highlights (USD bn) (USD) Net revenue 1,150.8 1,130.7 $13.7 (2%) Full year highlight Retail 388.3 392.4 $4.7 1% ¾ Two consecutive years of profitability despite challenging Asset Management 70.4 80.7 $1.0 15% macroeconomic backdrop an
Slide 7: Overview - Expenses
Overview - Expenses Enforcing a “pay-for-performance” culture will provide greater flexibility in compensation expense and be closely linked to revenue The pace of headcount growth has significantly slowed as the build-out of the international wholesale platform is largely complete Compensation
Slide 8: Business – Retail
Business – Retail Robust sales of stocks and bonds driven by response to client needs Average monthly sales of over JPY1tn for second straight year. Steady growth of client franchise with net client asset inflows of JPY4tn (USD48bn) during the year Net Revenue and Income Before Income Taxes Tota
Slide 9: Business – Asset Management
Business – Asset Management Assets under management increased each quarter during the year on continued inflows into investment trusts and an increase in investment advisory mandates, mainly from international clients, allowing us to further enhance our leading market position Net Revenue and Inco
Slide 10: Business – Wholesale / Global Markets
Business – Wholesale / Global Markets Despite challenging market conditions, Global Markets delivered solid performance in FY10/11 on the back of an expanded client franchise and diversified revenue streams Developing Americas and AEJ franchises continue to add greater revenue diversification, r
Slide 11: Business – Wholesale / Investment Banking
Business – Wholesale / Investment Banking Diversified revenue sources through disciplined expansion of product mix and coverage markets Maintained number one position in league tables2 in Japan for the full fiscal year, increasing market share in Japan-related ECM to 44.3%2 and Japan M&A to 51.7
Slide 12: Risk Management – Governance Framework and Control
Risk Management – Governance Framework and Control Group Integrated Risk Management Committee ensures the management’s direct involvement in risk management Chief Risk Officer directly reports to CEO/COO Risk appetite for each risk characteristic is outlined within risk tolerance set by the ma
Slide 13: Risk Management – Economic Capital, Level 3 Assets & Private Equity
Risk Management – Economic Capital, Level 3 Assets & Private Equity In line with the group risk appetite for various dimensions, continued to manage risk prudently, offloading particular risk positions, while appropriately allocating resources to meet client needs Share of economic capital for I
Slide 14: Capital and Leverage
Capital and Leverage Tier 1 capital is comprised of almost all common equity, no hybrids Balance sheet gross leverage remained at prudent levels at 17.6x, net leverage at 10.3x, maintaining a liquid Balance Sheet Financial Indicators1 Liquid Balance Sheet – Asset Components (JPYbn) (USDbn) (Prel
Slide 15: Liquidity and Funding – Liquidity
Liquidity and Funding – Liquidity Nomura maintains a liquidity pool invested in government securities and cash instruments, ready to be deployed at all times The liquidity pool is maintained to withstand hypothetical cash outflows under two-staged stress scenarios: A) “Stress” scenario where a m
Slide 16: Liquidity and Funding – Debt Profile
Liquidity and Funding – Debt Profile Diversification is a key element of our funding strategy. We debuted in international bond market in 2009 and successfully closed benchmark issuances in USD, EUR and GBP. Although much of our funding is conducted in Japan, we aim to balance diversification and
Slide 17: Key Metrics and Strategies
Key Metrics and Strategies Financial Themes / Strategies Category Metrics March 2011 ( March 2010) Retail: ¾ Channel: clear client segmentation, deepen multi-channel strategy Liquidity Pool Maintain adequate liquidity JPY 5.9tn (JPY5.2tn) ¾ Human capital development: implement efficient HR managemen
Slide 18: Appendix
Appendix
Slide 19: Company Business Structure
Company Business Structure Wholesale Asset Management Retail Global Markets Investment Banking Retail client assets: Fixed Assets Under Management: Equities Others Investment Banking Others JPY 70.6tn (USD853bn)1 Income JPY 24.7tn (USD298bn)1 1. As of 30 March 2011 19
Slide 20: Leading Positions in Home Markets
Leading Positions in Home Markets Breakdown of Personal Financial Assets in Japan1 / Nomura Share Retail Client Assets2 JPY 1,489 Trillion Insurance and annuities, 28.2% Nomura 37.7% % Savings and deposits, 55.1% Securities, 12.6% Others, 4.2% M&A financial advisory league table Equity capital book-
Slide 21: Global Reach
Global Reach Complete global footprint Americas Europe & Middle East Asia-Pacific Asia Pacific 2,348 employees in 3 countries with 4,353 employees in 18 countries 20,170 employees in 12 countries presence in: with presence in: with presence in: North America: Europe: Asia ex-Japan: – Atlanta –
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Millions of yen Millions of yen March 31, March 31, March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2011 2010 2011 2010 ASSETS LIABILITIES AND EQ UITY Cash and cash deposits: Short term borrowings Short-term 1 167 077 1,167,077 1 301 664 1,301,664 (134 587) (13
Slide 23: Consolidated Income
Consolidated Income FY2010.3 FY2011.3 (billions of yen) FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 4Q 1Q 2Q 3Q 4Q Revenue Commissions 337.5 404.7 306.8 395.1 405.5 96.6 118.1 83.5 100.0 103.8 Fees from investment banking 99.3 85.1 55.0 121.3 107.0 31.4 20.4 24.9 34.0 27.8 Asset sset management a a
Slide 24: Credit Ratings
Credit Ratings As of 29 October 2010 Rating and Japan Credit Rating S&P Moody's Investment As of 28 April 2011 Agency Information As of 17 June 2010 Nomura Holdings, Inc. Long term Long-term BBB+ Baa2 A+ AA- AA Short-term A-2 - a-1 - Outlook Stable Stable Stable Stable Nomura Securities Co., Ltd. Lo