Nomura Holdings, Inc. · TSE:8604
Nomura — Debt Investor Presentation (August 2011)
22 slides from Nomura's debt investor presentation, August 2011
Slide 1: Debt Investor Presentation, First Quarter FYE March 2012
Debt Investor Presentation First Quarter, Fiscal Year Ending March 2012 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 Executive Summary Overview Risk Management Capital, Liquidity and Funding Appendix Unless otherwise stated, conversion of Yen figures to U.S. Dollars has been calculated at the exchange rate of USD 1 = JPY 80.64, i.e. FRB noon rate as of June 30th 2011
Slide 4: Executive Summary
Executive Summary Resilient results amid difficult global environment • Retail and Asset Management reported solid revenue performance and both segments posted higher pre-tax income than in the previous quarter, despite challenging market conditions in Japan • Wholesale segment was pre-tax negativ
Slide 5: Overview – First Quarter Results
Overview – First Quarter Results FYE Highlights FYE2011 (JPY bn) 2012 QoQ YoY (USD bn) 1Q First Quarter Highlights 1Q 2Q 3Q 4Q 1Q (USD) ¾ Net revenue totaled JPY330.4bn ($4.1bn), up 10% QoQ, up 27% Net revenue 259.8 275.6 295.9 299.4 330.4 $4.1 10% 27% YoY; net income4 totaled JPY17.8bn ($220mn), up
Slide 6: Robust Retail & AM; Growing Franchise Driving Long-Term Performance
Overview - Robust Retail & AM; Growing Franchise Driving Long-Term Performance Retail and Asset Management segments continue to deliver strong financial metrics, solidifying our dominant position in the market Net Inflow ~ Investment Trusts Retail Trend (JPY bn) (JPY bn) Pretax(LHS) Revenue (LHS)
Slide 7: Wholesale: Americas Adding Breadth and Stability to Wholesale Earnings
Overview – Wholesale: Americas Adding Breadth and Stability to Wholesale Earnings 1Q represents the highest revenue quarter for the Americas since build-out began, increasing contribution to Wholesale revenue Continued development of Equities and Investment Banking provides revenue diversificati
Slide 8: Investment Banking: Further diversification of revenue base
Overview – Investment Banking: Further diversification of revenue base International expansion helping to diversify revenues = Announced in1Q EMEA/Americas M&A = Deal closed/Booked revenues in 1Q Grifols acquisition of Talecris ($4.0bn) Stable platform EMEA Japan Americas Pull-through revenue Japan-
Slide 9: Business – Retail
Business – Retail Client asset inflows were positive for the fifth consecutive quarter on robust sales of bonds and investment trusts, despite challenging market conditions in Japan Net client asset inflows of JPY847bn (USD10.5bn) during the quarter, by maintaining the consulting based approach
Slide 10: Business – Asset Management
Business – Asset Management Assets under management increased for the fourth straight quarter on continued inflows into investment trusts and an increase in investment advisory mandates, mainly from international clients Net Revenue and Income Before Income Taxes1 Assets Under Management FYE2011 F
Slide 11: Business – Wholesale / Global Markets
Business – Wholesale / Global Markets Despite subdued markets activity driven by challenging environment, Global Markets delivered resilient results, outpacing the market Wholesale Net Revenue and Income Before Income Taxes1 Highlights (JPY bn) FYE2011 FYE2012 Wholesale (USD bn) 1Q 2Q 3Q 4Q 1Q QoQ
Slide 12: Business – Wholesale / Investment Banking
Business – Wholesale / Investment Banking Maintained our number one position in the league tables2, increasing our market share in Japan-related ECM to 35.8%2 and Japan M&A to 49.1%2,3 Diversified revenue base in the US by growing sponsors business and solutions business Investment Banking Break
Slide 13: Expenses – Focused on Cost Management
Expenses – Focused on Cost Management Non-interest expenses increased 13% QoQ to JPY296bn, mainly due to the conversion of Nomura Land and Building into a subsidiary Non-interest expenses for our 3 business segments were down 2.8% QoQ Nomura remains focused on cost control Non-Interest Expense
Slide 14: Risk Management – Level 3, Private Equity, Value at Risk
Risk Management – Level 3, Private Equity, Value at Risk Proactive risk management using a broad and comprehensive range of quantitative measures to manage risks, including “wrong way” and “crowded trade” risks Continued to manage risk prudently during 1Q—de-risking less liquid positions, mainta
Slide 15: Capital and Leverage - High Quality Capital, Prudent Leverage
Capital and Leverage - High Quality Capital, Prudent Leverage Tier 1 capital is 16.2% as of June 2011 Gross leverage remained at prudent levels at 18.9x and net leverage at 11.6x. Increase reflects growth in trading assets and the impact of the NLB consolidation Level of contingent commitments
Slide 16: Liquidity Risk Management – Robust Liquidity Pool Level
Liquidity Risk Management – Robust Liquidity Pool Level As the firm’s primary measure for the group liquidity risk appetite, the MCO (Maximum Cumulative Outflows) models likely liquidity outflows under various stress scenarios, determining size of global liquidity pool (see key metrics below) Li
Slide 17: Liquidity and Funding – Debt Profile
Liquidity and Funding – Debt Profile Diversification is a key element of our funding strategy Although much of our funding is conducted in Japan, unsecured funding is broadly distributed Average maturity of debt (including current portion of long-term debt) exceeds six years Long-Term Funding
Slide 18: Appendix
Appendix
Slide 19: Global Reach
Global Reach Complete global footprint Americas Europe & Middle East Asia-Pacific 2,383 employees in 3 countries with 4,436 employees in 18 countries 28,811 employees in 12 countries presence in: with presence in: with presence in: North America: Europe: Asia ex-Japan: – Atlanta – Amsterdam –
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet Millions of yen Millions of yen June 30, March 31, June 30, March 31, Increase/(Decrease) Increase/(Decrease) 2011 2011 2011 2011 LIABILITIES AND EQ UITY ASSETS Short-term borrowings 1,090,401 1,167,077 (76,676) Cash and cash deposits: Payables a
Slide 21: Consolidated Income
Consolidated Income FY2011.3 FY2012.3 (billions of yen) FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 1Q 2Q 3Q 4Q 1Q Revenue Commissions 337.5 404.7 306.8 395.1 405.5 118.1 83.5 100.0 103.8 96.8 Fees from investment banking 99.3 85.1 55.0 121.3 107.0 20.4 24.9 34.0 27.8 13.8 Asset management and port
Slide 22: Credit Ratings
Credit Ratings Rating and Japan Credit S&P Moody's Investment Rating Agency Information As of 30 June 2011 Nomura Holdings Inc. Long-term BBB+ Baa2 A+ AA- Short-term A-2 - a-1 - Outlook Stable Stable Stable Stable Nomura Securities Co., Ltd L Long-term t A A- B 1 Baa1 A+ AA AA- Short-term A-2 P-2 a-
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