Nomura Holdings, Inc. · TSE:8604
Nomura — Nomura Investment Forum 2001
38 slides from Nomura's conference presentation, Dec 7, 2001
Slide 1: Investment Forum
Investment Forum Junichi Ujiie President and CEO, Nomura Holdings, Inc. December 7, 2001 1 This is a summary of the presentation at the Nomura Investment Forum 2001 Date: December 7, 2001 (Friday) Place: Tokyo Kaikan Level 21, Urbannet Otemachi Building Speaker: Junichi Ujiie, President and Chief Ex
Slide 2: Outline of the Presentation
Outline of the Presentation n Financial Results n Nomura Group’s Vision n Management Strategies Ø Maximizing the benefits of a growing mother market Ø Enhancement and cooperation of business lines Ø Enhancement of the management system 1. This document is produced by Nomura Holdings, Inc. ("Nomura")
Slide 3: Financial Results
NOMURA Financial Results
Slide 4: Ordinary Income (under Japanese GAAP)
Ordinary Income (under Japanese GAAP) (Billions of yen) 400 318.0 302.1 300 200 165.5 98.2 100 52.9 0 -100 Six months ended -200 Sep. 2001 -300 -324.4 -400 FY97.3 FY98.3 FY99.3 FY00.3 FY01.3 FY02.3 1H 4 Financial Results Ordinary income for the six months ended fiscal year September 2001 stood at 52
Slide 5: Nomura Group's Vision
NOMURA Nomura Group’s Vision
Slide 6: Nomura Group's Vision
Nomura Group’s Vision To be a Globally Competitive Japanese Financial Services Group Nomura Group’s Philosophy n Focus on our core businesses n Contribute to expansion of securities markets n Provide solutions through capital markets n Maximize shareholders ’ value Financial Target n Average ROE of
Slide 7: Business Portfolio
Business Portfolio Securities Domestic Global Businesses Retail Wholesale Fixed Income Equity Investment Banking Merchant Banking Asset Management Asset Businesses Management 7 Nomura Group’s Vision (2) Our business portfolio is composed of Securities Businesses, which consist of Domestic Retail and
Slide 8: Japan-Focused Globalization
Japan-Focused Globalization n Maximizing the Benefits of a Growing Mother Market n Enhancement and Cooperation of Business Lines n Enhancement of the Management System 8 Nomura Group’s Vision (3) Based on this business portfolio, we are aiming to become a financial institution capable of providing g
Slide 9: Management Strategies
NOMURA Management Strategies
Slide 10: Management Strategies
Management Strategies n Maximizing the Benefits of a Growing Mother Market 10 10
Slide 11: ROA in the Japanese Private Sector
ROA in the Japanese Private Sector 10% 5% 0% 71 73 75 77 79 81 83 85 87 89 91 93 95 97 Note: ROA = (private corporate income) / (nominal private capital stock). Nominal private capital stock = (real private capital stock) X (deflator of private plant and equipment investment). 11 Source: Nomura Rese
Slide 12: Deregulation
Deregulation n Consolidated corporate taxation n Fundamental amendment to the Commercial Code 002 n Securities tax system reform 2 01 20 n Mark-to-market accounting of cross-holding shares n Mark-to-market accounting of 00 n Corporate separation 20 financial products n Retirement benefit accounting
Slide 13: Investment Trusts as a Percentage of Individual Financial Assets
Investment Trusts as a Percentage of Individual Financial Assets 14% 12.3% 12% 11.4% 10% 8% 5.6% 6% 4% 2.5% 2% 0% Japan U.S. U.K. Germany Figures for Japan, the U.S. and U.K. are as of Jun. 2001. The figure for Germany is as of Dec. 2000. Sources: BOJ, FRB, ONC, Bundesbank 13 Management Strategies:
Slide 14: Structural Change in Asset Building
Structural Change in Asset Building Perceptions and Reality of Asset Building* Doubtful 93% Receive pension in the future Necessary 80% Necessity of asset building Developing 26% Development of asset building 0% 20% 40% 60% 80% 100% * Source: Nomura Securities, Sep. 2001 14 Management Strategies: Ma
Slide 15: Structural Change in Asset Building
Structural Change in Asset Building Net Cash Flow of Equity-type Investment Trusts* (Trillions of12 yen) Yen 25,000 8 20,000 Net cash flow of 4 15,000 equity-type investment trusts (LHS) 0 10,000 Nikkei Stock Average (RHS) -4 5,000 -8 0 CY90 CY91 CY92 CY93 CY94 CY95 CY96 CY97 CY98 CY99 CY00 CY01 1-9
Slide 16: Management Strategy
Management Strategy n Maximizing the Benefits of a Growing Mother Market Enhancement n Business and Cooperation of Business Lines Strategies 16 16
Slide 17: Establishment of Portfolio Advisory-based Service
Domestic Retail (1) Establishment of Portfolio Advisory-based Service (Trillions of yen) (Yen) 30 40,000 35,000 25 30,000 20 Retail client 25,000 assets (LHS) 15 20,000 15,000 Nikkei Stock 10 Average (RHS) 10,000 5 5,000 0 0 Mar.85 Mar.86 Mar.87 Mar.88 Mar.89 Mar.90 Mar.91 Mar.92 Mar.93 Mar.94 Mar.9
Slide 18: Transaction Status of Clients (account base)
Domestic Retail (2) Transaction Status of Clients (account base) Transactions in the Past Half Year One or more transactions 42% No transactions 58% Data: Client survey in the Tokyo area, Sep. 2001 18 Management Strategies: Enhancement and Cooperation of Business Lines Domestic Retail (2) This chart
Slide 19: Distribution of Clients by Age / Assets
Domestic Retail (3) Distribution of Clients by Age / Assets Nomura 100% 60 years and 29% over 80% 42% 53% 59% 50 60 60% 19% 40 50 22% 17% 40% 25% 30 40 22% 16% 17% 20% 14% 11% 15% 20 30 19% 7% 7% 6% 0% 1% 2% Japanese Client Assets Number of Population of Financial Accounts** Japan*** Assets* * Finan
Slide 20: Our Tasks
Domestic Retail (4) Our Tasks Improve Productivity Expand Customer Base via an Efficient Approach Utilizing IT Increase Approaches to Enhance Consulting Business Asset Builders 20 Management Strategies: Enhancement and Cooperation of Business Lines Domestic Retail (4) We believe this analysis points
Slide 21: Domestic Retail Business Model
Domestic Retail (5) Domestic Retail Business Model IT-related Face-to-face Services Services Call Center Asset Builders High Net Worth Customers 21 Management Strategies: Enhancement and Cooperation of Business Lines Domestic Retail (5) In order to accomplish these two tasks, we have been integratin
Slide 22: Business Model to Satisfy Clients' Needs
Domestic Retail (7) Business Model to Satisfy Clients’ Needs Comparison of Age Distribution (account base) 100% 22% 60 years and 80% 42% over 24% 50-60 60% 22% 40-50 21% 40% 15% 30-40 20% 23% 14% Below 30 years 8% 10% 0% Nomura Cash Nomura Home Trade Management Service 22 Management Strategies: Enha
Slide 23: Business Model to Satisfy Clients' Needs
Domestic Retail (6) Business Model to Satisfy Clients’ Needs Number of Accounts (thousands of accounts) Number of NCMS* accounts 3,000 Number of "Home Trade"** 2,690 2,540 2,500 2,400 2,170 2,000 1,900 1,670 1,500 1,000 780 580 690 460 500 280 350 0 FY01.3 1Q 2Q 3Q 4Q FY02.3 1Q 2Q * NCMS = Nomura Ca
Slide 24: Business Model to Satisfy Clients' Needs
Domestic Retail (8) Business Model to Satisfy Clients’ Needs IT Share* 40% 38% 36% 34% 35% 32% 30% 26% 25% 25% 20% 18% 17% 14% 15% 15% 10% 10% 8% IT Share* (in terms of number of orders) 5% IT Share* (in terms of transaction value) 0% FY01.3 1Q 2Q 3Q 4Q FY02.3 1Q 2Q * IT Share: The share of online a
Slide 25: Efforts to Expand Participation in the Japanese Securities Market
Domestic Retail (9) Efforts to Expand Participation in the Japanese Securities Market Nomura Nomura Asset Asset Management Management n Holding of Nomura Asset Management Fair Fair Fair Participants Participants 25,000 n Support for more than 80 courses at domestic and overseas universities 20,000 1
Slide 26: Collaboration with Corporate Employees' Investment Plan Business
Domestic Retail (10) Collaboration with Corporate Employees’ Investment Plan Business Strong Strong Position Position n Number of customers: 3,000 in in Corporate Corporate Employees Employees ’’ (including 1,400 listed and registered companies) Investment Investment Plan Plan Market Market n Market
Slide 27: Total Solution Services of Global Wholesale
Global Wholesale (1) Total Solution Services of Global Wholesale Equity Fixed Company’s B/S Income Asset Underwriting Management Advanced Securitization redemption Liabilities J-REIT Assets Liquidization of credit Unwinding of Retirement cross benefit trusts shareholdings Equity Reorganization of Ca
Slide 28: Global Integration of Wholesale
Global Wholesale (2) Global Integration of Wholesale Focus on Japan’s Corporate Financial Problem n Establish global product supply system n Enhance M&A businesses n Develop capital gains opportunities in Japan Europe Japan U.S. 28 Management Strategies: Enhancement and Cooperation of Business Lines
Slide 29: Establish Global Product Supply System
Global Wholesale (3) Establish Global Product Supply System Secondary Bond Trading* Off-floor/off -exchange Equity Trading* 16% 19% MBS in U.S. (Reperforming loans) Europe Japan U.S. Japanese Equity: CMBS in Japan Samurai Bonds** Primary and secondary offerings* 33% 40% Six months ended Sep. 2001 29
Slide 30: Enhance M&A Businesses
Global Wholesale (4) Enhance M&A Businesses n Financial advisor for large M&A deal M&A M&A Ranking Ranking (Jan.-Sep. (Jan.-Sep. 2001)* 2001)* Transaction Ø Japan Telecom – Vodafone Group Rank Advisor Amounts Deals ($ Billion) n Second place in M&A ranking (Jan.-Sep. 2001) * 1 Goldman Sachs 87.6 18
Slide 31: Develop Capital Gains Opportunities in Japan
Global Wholesale (5) Develop Capital Gains Opportunities in Japan n Established “Merchant Banking” as fourth business line n Diversify regional risk exposure Europe Japan U.S. Global Merchant Banking 31 Management Strategies: Enhancement and Cooperation of Business Lines Global Wholesale (5) The fin
Slide 32: Investment Trusts
Asset Management (1) Investment Trusts Equity-type Equity-type Investment Investment Trusts* Trusts* Bond-type Bond-type Investment Investment Trusts* Trusts* Assets Under Assets Under Asset Management Company Share Asset Management Company Share Management Management 1 Nomura Asset Management 2,357
Slide 33: Investment Advisory
Asset Management (2) Investment Advisory Investment Investment Advisory Advisory Assets Assets Under Under Management Management (market)* (market)* (Trillions of yen) 100 90 Non-pension assets Assets under management 80 at NAM (Pension assets)** Pension assets 70 3.5 tril. yen 60 50 8% 40 market sh
Slide 34: Defined Contribution Pension Plan
Asset Management (3) Defined Contribution Pension Plan Provision of Unified Nomura Group Services n Full use of broad customer base in employee investment plan n Utilize asset management know-h o w n Provide consistent services from pension system planning to product supply 34 Management Strategies:
Slide 35: Defined Contribution Pension Plan
Asset Management (4) Defined Contribution Pension Plan Pension Pension Product Product System System Trusts Trusts Planning Planning Supply Supply Introduction Introduction Nomura Trust Nomura /Investment /Investment and Banking Asset Management Education Education Product Product Record Record Info
Slide 36: Management Strategies
Management Strategies n Maximizing the Benefits of a Growing Mother Market n Enhancement and Cooperation of Business Lines n Enhancement Enhancementofofthe theManagement ManagementSystem System 36 36
Slide 37: Enhancement of the Management System
Enhancement of the Management System Board Board n 12 directors including 2 outside directors (Mr. M. Shibata, President and CEO of of of Directors Directors NGK Insulators, Ltd. and Mr. H. Kubori, Chairman of Hibiya Park Law Offices) n Internal audit function Audit Audit Committee Committee includi
Slide 38: NOMURA
NOMURA 38