Segment and geographic information

12 Months Ended

Mar. 31, 2013

Segment and geographic information

23. Segment and geographic information:

Operating segments—

Nomura’s operating management and management reporting are prepared based on the Retail, the Asset Management, and the Wholesale segments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure.

The accounting policies for segment information materially follow U.S. GAAP, except for the impact of unrealized gains/losses on investments in equity securities held for operating purposes, which under U.S. GAAP are included in Income before income taxes, but excluded from segment information.

Revenues and expenses directly associated with each business segment are included in the operating results of each respective segment. Revenues and expenses that are not directly attributable to a particular segment are allocated to each respective business segment or included in “Other”, based upon Nomura’s allocation methodologies as used by management to assess each segment’s performance.

Business segments’ results are shown in the following tables. Net interest revenue is disclosed because management views interest revenue net of interest expense for its operating decisions. Business segments’ information on total assets is not disclosed because management does not utilize such information for its operating decisions and therefore, it is not reported to management. In April 2011, Nomura Bank (Luxembourg) S.A. in the Asset Management segment was integrated into “Other”. And, in accordance with the realignment in April 2012, certain prior period amounts have been reclassified to confirm with the current fiscal year presentation (Wholesale and “Other”).

	Millions of yen
	Retail		Asset Management		Wholesale			Other (Incl.  elimination)			Total
Year ended March 31, 2011
Non-interest revenue	¥	389,404	¥	62,670	¥	532,527		¥	71,684		¥	1,056,285
Net interest revenue		3,029		3,865		93,607			(9,192)			91,309
Net revenue		392,433		66,535		626,134			62,492			1,147,594
Non-interest expenses		291,245		46,513		622,000			77,685			1,037,443
Income (loss) before income taxes	¥	101,188	¥	20,022	¥	4,134		¥	(15,193	)	¥	110,151
Year ended March 31, 2012
Non-interest revenue	¥	347,385	¥	63,022	¥	428,738		¥	572,918		¥	1,412,063
Net interest revenue		2,873		2,778		126,311			(11,973)			119,989
Net revenue		350,258		65,800		555,049			560,945			1,532,052
Non-interest expenses		287,128		45,281		592,701			525,792			1,450,902
Income (loss) before income taxes	¥	63,130	¥	20,519	¥	(37,652	)	¥	35,153		¥	81,150
Year ended March 31, 2013
Non-interest revenue	¥	394,294	¥	66,489	¥	491,773		¥	695,695		¥	1,648,251
Net interest revenue		3,631		2,448		153,083			(31,467	)		127,695
Net revenue		397,925		68,937		644,856			664,228			1,775,946
Non-interest expenses		297,297		47,768		573,199			657,637			1,575,901
Income (loss) before income taxes	¥	100,628	¥	21,169	¥	71,657		¥	6,591		¥	200,045

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other” column.

The following table presents the major components of income (loss) before income taxes in “Other.”

	Millions of yen
	Year ended March 31
	2011			2012			2013
Net gain related to economic hedging transactions	¥	2,290		¥	8,372		¥	989
Realized gain on investments in equity securities held for operating purposes		219			198			1,001
Equity in earnings of affiliates		8,996			10,613			14,401
Corporate items(1)(3)		(34,476	)		(32,129	)		17,652
Other(2) (3)		7,778			48,099			(27,452	)
Total(3)	¥	(15,193	)	¥	35,153		¥	6,591

(1) Includes the gain due to the business combination with NLB in Corporate items during the year ended March 31, 2012.

(2) Includes the impact of Nomura’s own creditworthiness.

(3) In accordance with the realignment in April 2012, certain prior period amounts of Wholesale and “Other” have been reclassified to conform to the current period presentation.

The table below presents a reconciliation of the combined business segments’ results included in the preceding table to Nomura’s reported Net revenue, Non-interest expenses and Income before income taxes in the consolidated statements of income.

	Millions of yen
	Year ended March 31
	2011			2012		2013
Net revenue	¥	1,147,594		¥	1,532,052	¥	1,775,946
Unrealized gain (loss) on investments in equity securities held for operating purposes		(16,896	)		3,807		37,685
Consolidated net revenue	¥	1,130,698		¥	1,535,859	¥	1,813,631
Non-interest expenses	¥	1,037,443		¥	1,450,902	¥	1,575,901
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—
Consolidated non-interest expenses	¥	1,037,443		¥	1,450,902	¥	1,575,901
Income before income taxes	¥	110,151		¥	81,150	¥	200,045
Unrealized gain (loss) on investments in equity securities held for operating purposes		(16,896	)		3,807		37,685
Consolidated income before income taxes	¥	93,255		¥	84,957	¥	237,730

Geographic information—

Nomura’s identifiable assets, revenues and expenses are generally allocated based on the country of domicile of the legal entity providing the service. However, because of the integration of the global capital markets and the corresponding global nature of Nomura’s activities and services, it is not always possible to make a precise separation by location. As a result, various assumptions, which are consistent among years, have been made in presenting the following geographic data.

The tables below present a geographic allocation of net revenue and income (loss) before income taxes from operations by geographic areas, and long-lived assets associated with Nomura’s operations. Net revenue in “Americas” and “Europe” substantially represents Nomura’s operations in the U.S. and the U.K., respectively. Net revenue and long-lived assets have been allocated based on transactions with external customers while income (loss) before income taxes has been allocated based on the inclusion of intersegment transactions.

	Millions of yen
	Year ended March 31
	2011			2012			2013
Net revenue(1):
Americas	¥	168,889		¥	143,350		¥	208,962
Europe		257,135			195,826			172,761
Asia and Oceania		44,474			34,819			43,265
Subtotal		470,498			373,995			424,988
Japan		660,200			1,161,864			1,388,643
Consolidated	¥	1,130,698		¥	1,535,859		¥	1,813,631
Income (loss) before income taxes:
Americas	¥	4,410		¥	(24,612	)	¥	25,730
Europe		(43,627	)		(91,544	)		(93,099	)
Asia and Oceania		(16,296	)		(12,937	)		(12,063	)
Subtotal		(55,513	)		(129,093	)		(79,432	)
Japan		148,768			214,050			317,162
Consolidated	¥	93,255		¥	84,957		¥	237,730
	March 31
	2011			2012			2013
Long-lived assets:
Americas	¥	91,295		¥	94,698		¥	118,302
Europe		115,352			114,195			111,381
Asia and Oceania		31,642			23,892			20,471
Subtotal		238,289			232,785			250,154
Japan		270,945			973,711			294,002
Consolidated	¥	509,234		¥	1,206,496		¥	544,156

(1) There is no revenue derived from transactions with a single major external customer.