Nomura Holdings, Inc. · TSE:8604

Nomura — Debt Investor Presentation (October 2013)

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

  1. Slide 1: Creditor Presentation

    Creditor Presentation Second Quarter, Fiscal Year Ending March 2014 Nomura Holdings, Inc. October 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 P3 „ Overview of Results P4 „ Retail, Asset Management, Wholesale P5 „ Non-Interest Expenses P9 „ Reference: Wholesale Non-Interest Expenses and Net Revenue P10 „ Balance Sheet Management P11 ¾ Financial Position P12 ¾ Liquidity Profile P13 ¾ Funding Profile P14

  4. Slide 4: Executive Summary

    Executive Summary Highlights FY2013/14 1H „ Net revenue: Y787 Y787.7bn 7bn (+2% YoY); Income before income taxes: Y186 Y186.2bn 2bn (3 (3.4x 4x YoY); Net income(1): Y104.0bn Y104 0bn (22 (22.1x 1x YoY) – Net income at highest level since FY2002/03 1H – All business divisions reported stronger revenu

  5. Slide 5: Overview of Results

    Overview of Results Result for Six Months Quarterly Result Ended September 30 Key Points FY2012/13 FY2013/14 (JPY bn) (1) FY2012/13(1) FY2013/14 (USD b (US bn)) QoQ YoY(1) YoY(1) 1H 1H 2Q 1Q 2Q „ Retail 356.4 787.7 Net revenue: Y119.7bn (-28% QoQ) Net revenue 401.7 431.3 -17% -11% 770.9 +2% Income b

  6. Slide 6: Retail

    Retail Net Revenue and Income Before Income Taxes Key Points (JPY bn) FY2012/13 FY2013/14 „ Income before income taxes remained strong, albeit down from 1Q which (USD bn) QoQ YoY Q 2Q 3Q Q 4Q Q 1Q Q 2Q Q was best quarter since fiscal year ended March 2002 – Market M k t uncertainty t i t contributed

  7. Slide 7: Asset Management

    Asset Management Net Revenue and Income Before Income Taxes Key Points (JPY bn) FY2012/13 FY2013/14 „ AuM (net): Reached Y30trn for first time since Sep 2007 on inflows into (USD bn) QoQ YoY investment trusts Q 2Q 3Q Q 4Q Q 1Q Q 2Q Q „ Income before income taxes remained strong in line with 1Q 18.6

  8. Slide 8: Wholesale

    Wholesale N t Revenue Net R and d Income I B f Before I Income T Taxes K P Key Points i t FY2012/13 FY2013/14 (JPY bn) QoQ YoY „ Japan-related business slowed due to a decline in client activity (USD bn) 2Q 3Q 4Q 1Q 2Q „ All international regions performed well 159.6 –Global Markets remained key dri

  9. Slide 9: Wholesale: Global Markets and Investment Banking

    Wholesale: Global Markets and Investment Banking Global Markets Net Revenue(1) Investment Banking Net Revenue ((JPY bn)) Investment Banking (gross) (JPY bn) Equities 173.1 33.3 33.4 44.1 47.2 45.8 165.3 QoQ Fixed Income 158.0 159.6 -3% Investment Banking (net) 59.9 Other 30.9 29.3 QoQ 120.7 41.9 67.

  10. Slide 10: Non-Interest Expenses

    Non-Interest Expenses F ll Year Full Y Q Quarter t K P Key Points i t (JPY bn) (JPY bn) „ Non-interest expenses: Y283.5bn 1,600 1,575.9 483.9 (-11% QoQ) 500 1,450.9 Other – Compensation and benefits declined Business development 366.3 376.1 400 1,200 markedly expenses 318.1 9 FCR(1) related expenses

  11. Slide 11: Reference: Wholesale Non-Interest Expenses and Net Revenue

    Reference: Wholesale Non-Interest Expenses and Net Revenue (JPY bn) Expenses (USD): (USD mn) 400.0 -15% 5,000 „ Implemented $2bn of cost reduction initiatives since Jul 2011 300.0 3,892 4,000 – While Wholesale expenses fluctuate in line with the 3,322 revenue environment, exchange rates, and restruc

  12. Slide 12: Balance Sheet Management

    Balance Sheet Management Balance Sheet (As of Sep 2013) Balance Sheet Structure Funding Profile Highly liquid, healthy balance sheet Assets Liabilities and Equity „ „ Conservative Funding Profile structure – More than 80% of unsecured – 82% of assets are highly liquid funding(3) is long-term debt tr

  13. Slide 13: Robust Financial Position

    Robust Financial Position B l Balance Sh t Related Sheet R l t d Indicators I di t and d Capital C it l Ratios R ti Ri k Weighted Risk W i ht d Assets A t and d Tier Ti 1 Ratio R ti RWA (Basel 2.5) (lhs) RWA (Basel 3) (lhs) (As of September 2013) (JPY bn) Tier 1 ratio (Basel 2.5) (rhs) Tier 1 ratio

  14. Slide 14: Liquidity Profile

    Liquidity Profile Breakdown of Liquidity Portfolio (September 2013) „ Maintains JPY6.5 trillion (USD66billion) liquidity portfolio(1) as of September 30, 2013 Above 90% of the portfolio Deposit Others mainly consists with highly By Instrument Reverse Repo liquid government bonds 77% 18% 5% (Japan, U

  15. Slide 15: Funding Profile

    Funding Profile „ More than 80% of debt is long-term to withstand changes in lending climate „ Funding sources are diversified among the following three markets to mitigate refinance risk: 9 Bank Lending Market: Funded mainly from Japanese relationship banks 9 Wholesale Market: Access to the bond ma

  16. Slide 16: Credit Ratings

    Credit Ratings „ Stable outlook by all rating agencies „ Obtained A-/F1 ratings from Fitch Standard & Moody’s Fitch(1) Rating and Japan Credit As of September 30, 2013(1) Poor’s Investment Rating Agency Information Nomura Holdings, Inc. Long-term BBB+ Baa3 A- A+ AA- Short-term A-2 - F1 a-1 - Outlook

  17. Slide 17: Appendix

    NOMURA Appendix

  18. Slide 18: Consolidated Balance Sheet

    Consolidated Balance Sheet Millions of yen Millions off yen Milli March 31, September 30, March 31, September 30, Increase/(Decrease) Increase/(Decrease) 2013 2013 2013 2013 ASSETS LIABILITIES AND EQUITY Cash and cash deposits: Short-term borrowings 738,445 800,966 62,521 Cash and cash equivalents 8

  19. Slide 19: Consolidated Income

    Consolidated Income F ll year Full Q Quarter t (billions of yen) FY2012/13 FY2013/14 FY2011/12 FY2012/13 2Q 3Q 4Q 1Q 2Q Revenue Commissions 347.1 359.1 72.3 83.7 125.7 157.6 105.6 Fees from investment banking 59.6 62.4 17.1 13.0 21.8 25.4 23.0 Asset management and portfolio service fees 144.3 141.0

  20. Slide 20: Consolidated Results: Income (loss) Before Income Taxes by Segment and Region

    Consolidated Results: Income (loss) Before Income Taxes by Segment and Region Adj t Adjustment t off Consolidated C lid t d Results R lt and d Segment S t Results: R lt Income I (Loss) (L ) Before B f I Income T Taxes FY2012/13 FY2012/14 (billions of yen) FY2011/12 FY2012/13 2Q 3Q 4Q 1Q 2Q Retail 63

  21. Slide 21: Segment “Other”

    Segment “Other” Income (Loss) Before Income Taxes F ll Year Full Y Q Quarter t (billions of yen) (billions of yen) 40 35.2 60 50.1 20 40 6.6 20 0 7.3 0 -20 -3.5 -7.0 -20 -40 -40 -60 -60 -80 -67.9 -80 FY2012/13 FY2013/14 FY2011/12 FY2012/13 2Q 3Q 4Q 1Q 2Q Net gain (loss) related to economic 8.4 1.0 1

  22. Slide 22: Value at Risk

    Value at Risk „ Definition „ From April 1, 1 2013 to September 30, 30 2013 (billions of yen) − 99% confidence level − Maximum: 9.3 − 1-day time horizon for outstanding portfolio − Minimum: 4.4 − Inter-product price fluctuations considered − Average: 6.4 (billions of yen) FY2011/12 FY2012/13 FY2012/1

  23. Slide 23: Number of Employees

    Number of Employees FY2011/12 FY2012/13 FY2012/13 FY2013/14 Mar. 2012 Mar. 2013 Sep. 2012 Dec. 2012 Mar. 2013 Jun. 2013 Sep. 2013 Japan (excluding FA)1 19,598 14,123 20,039 19,877 14,123 14,654 14,454 Japan (FA) 2,011 1,907 1,981 1,951 1,907 1,911 1,923 Europe 4,014 3,618 3,940 3,747 3,618 3,485 3,4

Nomura Holdings — Debt Investor Presentation (October 2013) on 6ix