6-K 1 d545375d6k.htm FORM 6-K FORM 6-K
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FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

For the month of April 2018

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F       X             Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

 

 

 

 


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Information furnished on this form:

EXHIBIT

 

Exhibit Number
1.    Financial Summary – Year ended March 31, 2018


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   NOMURA HOLDINGS, INC.
Date: April 26, 2018    By:  

/s/ Hajime Ikeda

     Hajime Ikeda
     Senior Managing Director


Table of Contents

Financial Summary For the Year Ended March 31, 2018 (U.S. GAAP)

 

Date:    April 26, 2018
Company name (code number):    Nomura Holdings, Inc. (8604)
Stock exchange listings:   

(In Japan) Tokyo, Nagoya

(Overseas) New York, Singapore

Representative:   

Koji Nagai

President and Group CEO, Nomura Holdings, Inc.

For inquiries:   

Junko Tago

Executive Director, Head of Investor Relations, Nomura Holdings, Inc.

Tel: (Country Code 81) 3-5255-1000

URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results

 

     (Rounded to nearest million)  
     For the year ended March 31  
     2017     2018  
     (Millions of yen, except per share data)  
           % Change from
March 31, 2016
          % Change from
March 31, 2017
 

Total revenue

     1,715,516       (0.4 %)      1,972,158       15.0

Net revenue

     1,403,197       0.5     1,496,969       6.7

Income before income taxes

     322,795       95.4     328,158       1.7

Net income attributable to

Nomura Holdings, Inc. (“NHI”) shareholders

     239,617       82.1     219,343       (8.5 %) 

Comprehensive income

     209,847       398.0     125,686       (40.1 %) 

Basic-Net income attributable to NHI shareholders per share (Yen)

     67.29         63.13    

Diluted-Net income attributable to NHI shareholders per share (Yen)

     65.65         61.88    

Return on shareholders’ equity

     8.7       7.9  

Income before income taxes to total assets

     0.8       0.8  

Income before income taxes divided by total revenue

     18.8       16.6  

Equity in earnings of affiliates

     33,000         34,516    

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position

 

                                                                 
     At March 31  
     2017     2018  
     (Millions of yen, except per share
data)
 

Total assets

     42,852,078       40,591,329  

Total equity

     2,843,791       2,799,824  

Total NHI shareholders’ equity

     2,789,916       2,749,320  

Total NHI shareholders’ equity as a percentage of total assets

     6.5     6.8

Total NHI shareholders’ equity per share (Yen)

     790.70       810.31  


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(3) Cash Flows

 

                                                                 
     For the year ended March 31  
     2017     2018  
     (Millions of yen)  

Net cash provided by (used in) operating activities

     1,305,025       (445,696

Net cash provided by (used in) investing activities

     (118,051     (56,172

Net cash provided by (used in) financing activities

     (2,130,644     373,168  

Cash and cash equivalents at end of the year

       2,536,840         2,354,639  
2. Cash Dividends     
     For the year ended March 31  
     2017     2018  
     (Yen amounts, except
total annual dividends)
 

Dividends per share

    

Dividends record dates

    

At June 30

     —         —    

At September 30

     9.00       9.00  

At December 31

     —         —    

At March 31

     11.00       11.00  

For the year

     20.00       20.00  

Total annual dividends (Millions of yen)

     70,825       68,704  

Consolidated payout ratio

     29.7     31.7

Consolidated dividends as a percentage of shareholders’ equity per share

     2.6     2.5

3. Earnings Forecasts for the year ending March 31, 2019

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings and dividends forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

      (Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Changes in accounting policies

      a)    Changes in accounting policies due to amendments to the accounting standards : None

      b)    Changes in accounting policies due to other than a) : None

(3) Number of shares issued (common stock)

 

                                                                   
     At March 31  
     2017     2018  

Number of shares outstanding (including treasury stock)

     3,822,562,601         3,643,562,601    

Number of treasury stock

     294,133,150       250,625,115  
     For the year ended March 31  
   2017     2018  

Average number of shares outstanding

     3,560,775,652       3,474,593,441  

*This financial summary is not subject to certified public accountant’s or audit firm’s audits


Table of Contents

Table of Contents for the Accompanying Materials

 

1.    Overview of Consolidated Operating Results

     P. 2  

(1)    Overview of Consolidated Operating Results

     P. 2  

(2)    Overview of Consolidated Financial Position

     P. 4  

(3)    Overview of Cash Flows

     P. 4  

2.     Considerations in the selection of accounting standards

     P. 5  

3.    Consolidated Financial Statements

     P. 5  

(1)    Consolidated Balance Sheets

     P. 6  

(2)    Consolidated Statements of Income

     P.8  

(3)    Consolidated Statements of Comprehensive Income

     P.9  

(4)    Consolidated Statements of Changes in Equity

     P.10  

(5)    Consolidated Statements of Cash Flows

     P.11  

(6)    Note with respect to the Assumption as a Going Concern

     P.11  

(7)    Notes to the Consolidated Financial Statements

     P.12  

(8)    Other Financial Information

     P.14  

4.    Other Information

     P.16  

 

– 1 –


Table of Contents
1. Overview of Consolidated Operating Results

 

(1) Overview of Consolidated Operating Results

Operating Results

    U.S. GAAP

 

     Billions of yen     % Change  
   For the year ended     (B-A)/(A)  
   March 31,
2017 (A)
    March 31,
2018 (B)
   

Net revenue

     1,403.2       1,497.0                 6.7   

Non-interest expenses

     1,080.4       1,168.8       8.2  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     322.8       328.2       1.7  

Income tax expense

     80.2       103.9       29.5  
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     242.6       224.3       (7.5
  

 

 

   

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

           2.9                 4.9       67.8  
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NHI shareholders

     239.6       219.3       (8.5
  

 

 

   

 

 

   

 

 

 

Return on shareholders’ equity *

     8.7     7.9     —    
  

 

 

   

 

 

   

 

 

 

 

 

* Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of 1,497.0 billion yen for the fiscal year ended March 31, 2018, an increase of 6.7% from the previous year. Non-interest expenses increased by 8.2% from the previous year to 1,168.8 billion yen. Income before income taxes was 328.2 billion yen and Net income attributable to NHI shareholders was 219.3 billion yen for the fiscal year ended March 31, 2018.

    Segment Information

 

     Billions of yen     % Change  
   For the year ended     (B-A)/(A)  
   March 31,
2017 (A)
    March 31,
2018 (B)
   

Net revenue

     1,396.6           1,495.1                     7.1   

Non-interest expenses

     1,080.4       1,168.8       8.2  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

               316.2               326.3       3.2  
  

 

 

   

 

 

   

 

 

 

In business segment totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the fiscal year ended March 31, 2018 was 1,495.1 billion yen, an increase of 7.1% from the previous year. Non-interest expenses increased by 8.2% from the previous year to 1,168.8 billion yen. Income before income taxes was 326.3 billion yen for the fiscal year ended March 31, 2018. Please refer to page 13 for further details of the differences between U.S. GAAP and business segment amounts.

 

– 2 –


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<Business Segment Results>

    Operating Results of Retail

 

     Billions of yen      % Change  
     For the year ended      (B-A)/(A)  
     March 31,
2017 (A)
     March 31,
2018 (B)
    

Net revenue

     374.4        412.9        10.3  

Non-interest expenses

                299.6        309.8                  3.4  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     74.8                   103.1        37.9  
  

 

 

    

 

 

    

 

 

 

Net revenue increased by 10.3% from the previous year to 412.9 billion yen, primarily due to increasing commissions from distribution of investment trusts and brokerage. Non-interest expense increased by 3.4% to 309.8 billion yen. As a result, income before income taxes increased by 37.9% to 103.1 billion yen.

    Operating Results of Asset Management

 

     Billions of yen      % Change  
     For the year ended      (B-A)/(A)  
     March 31,
2017 (A)
     March 31,
2018 (B)
    

Net revenue

     99.4        127.3        28.1  

Non-interest expenses

                  57.1        61.2                  7.1  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     42.3                     66.2        56.3  
  

 

 

    

 

 

    

 

 

 

Net revenue increased by 28.1% from the previous year to 127.3 billion yen. Non-interest expense increased by 7.1% to 61.2 billion yen. As a result, income before income taxes increased by 56.3% to 66.2 billion yen. Assets under management were 50.0 trillion yen as of March 31, 2018.

    Operating Results of Wholesale

 

     Billions of yen      % Change  
     For the year ended      (B-A)/(A)  
     March 31,
2017 (A)
     March 31,
2018 (B)
    

Net revenue

     739.3        715.3        (3.2

Non-interest expenses

                577.8        614.7                  6.4  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     161.4                   100.6        (37.7
  

 

 

    

 

 

    

 

 

 

Net revenue decreased by 3.2% from the previous year to 715.3 billion yen. Non-interest expense increased by 6.4% to 614.7 billion yen. As a result, income before income taxes decreased by 37.7% to 100.6 billion yen.

    Other Operating Results

 

     Billions of yen      % Change  
     For the year ended      (B-A)/(A)  
     March 31,
2017 (A)
     March 31,
2018 (B)
    

Net revenue

     183.5        239.5        30.5  

Non-interest expenses

                145.9        183.1        25.6  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     37.6                     56.4                49.9  
  

 

 

    

 

 

    

 

 

 

Net revenue was 239.5 billion yen and income before income taxes was 56.4 billion yen.

 

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Table of Contents
(2) Overview of Consolidated Financial Position

Total assets as of March 31, 2018, were 40,591.3 billion yen, a decrease of 2,260.7 billion yen compared to March 31, 2017, mainly due to the decrease in Securities purchased under agreements to resell. Total liabilities as of March 31, 2018 were 37,791.5 billion yen, a decrease of 2,216.8 billion yen compared to March 31, 2017, mainly due to the decrease in Securities sold under agreements to repurchase. Total equity as of March 31, 2018 was 2,799.8 billion yen, a decrease of 44.0 billion yen compared to March 31, 2017. During the year ended March 31, 2018, Nomura cancelled 179,000,000 shares of its own shares.

 

(3) Overview of Cash Flows

Cash and cash equivalents as of March 31, 2018, decreased by 182.2 billion yen compared to March 31, 2017. Cash flows from operating activities for the year ended March 31, 2018 were outflows of 445.7 billion yen due mainly to the increase in Loans and receivables, net of allowance for doubtful accounts. Cash flows from investing activities for the year ended March 31, 2018 were outflows of 56.2 billion yen due mainly to Payments for purchases of office buildings, land, equipment and facilities. Cash flows from financing activities for the year ended March 31, 2018 were inflows of 373.2 billion yen due primarily to the increase in long-term borrowings.

 

– 4 –


Table of Contents
2. Considerations in the selection of accounting standards

Nomura currently adopts U.S. generally accepted accounting principles. Depending on factors such as trends by other companies and the impact of International Financial Reporting Standards (“IFRS”) on Nomura’s businesses, Nomura may consider in adopting IFRS in the future.

 

3. Consolidated Financial Statements

The consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 26, 2017) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 26, 2017) for the year ended March 31, 2017.

 

– 5 –


Table of Contents
(1) Consolidated Balance Sheets

 

     Millions of yen  
     March 31,
2017
    March 31,
2018
    Increase/
(Decrease)
 
ASSETS       

Cash and cash deposits:

      

Cash and cash equivalents

     2,536,840       2,354,639       (182,201

Time deposits

     207,792       315,445       107,653  

Deposits with stock exchanges and other segregated cash

     227,456       288,962       61,506  
  

 

 

   

 

 

   

 

 

 

Total cash and cash deposits

     2,972,088       2,959,046       (13,042
  

 

 

   

 

 

   

 

 

 

Loans and receivables:

      

Loans receivable

     1,875,828       2,462,503       586,675  

Receivables from customers

     308,086       442,343       134,257  

Receivables from other than customers

     1,005,766       1,216,382       210,616  

Allowance for doubtful accounts

     (3,551     (3,514     37  
  

 

 

   

 

 

   

 

 

 

Total loans and receivables

     3,186,129       4,117,714       931,585  
  

 

 

   

 

 

   

 

 

 

Collateralized agreements:

      

Securities purchased under agreements to resell

     11,456,591       9,853,898       (1,602,693

Securities borrowed

     7,273,234       6,383,845       (889,389
  

 

 

   

 

 

   

 

 

 

Total collateralized agreements

     18,729,825       16,237,743       (2,492,082
  

 

 

   

 

 

   

 

 

 

Trading assets and private equity investments:

      

Trading assets*

     15,165,310       14,967,557       (197,753

Private equity investments

     27,054       17,466       (9,588
  

 

 

   

 

 

   

 

 

 

Total trading assets and private equity investments

     15,192,364       14,985,023       (207,341
  

 

 

   

 

 

   

 

 

 

Other assets:

      

Office buildings, land, equipment and facilities

(net of accumulated depreciation and amortization of

¥445,000 million as of March 31, 2017 and

¥397,834 million as of March 31, 2018)

     349,696       338,984       (10,712

Non-trading debt securities*

     775,025       485,891       (289,134

Investments in equity securities*

     146,730       150,760       4,030  

Investments in and advances to affiliated companies*

     420,116       408,034       (12,082

Other

     1,080,105       908,134       (171,971
  

 

 

   

 

 

   

 

 

 

Total other assets

     2,771,672       2,291,803       (479,869
  

 

 

   

 

 

   

 

 

 

Total assets

     42,852,078       40,591,329       (2,260,749
  

 

 

   

 

 

   

 

 

 

 

* Including securities pledged as collateral

 

– 6 –


Table of Contents
             Millions of yen  
       March 31,
2017
    March 31,
2018
    Increase/
(Decrease)
 
LIABILITIES AND EQUITY       

Short-term borrowings

     543,049       743,497       200,448  

Payables and deposits:

      

Payables to customers

     1,065,920       1,176,773       110,853  

Payables to other than customers

     1,509,672       1,476,540       (33,132

Deposits received at banks

     1,132,843       1,151,342       18,499  
  

 

 

   

 

 

   

 

 

 

Total payables and deposits

       3,708,435          3,804,655        96,220  
  

 

 

   

 

 

   

 

 

 

Collateralized financing:

      

Securities sold under agreements to repurchase

     17,095,898       14,759,010       (2,336,888

Securities loaned

     1,627,124       1,524,363       (102,761

Other secured borrowings

     338,069       413,621       75,552  
  

 

 

   

 

 

   

 

 

 

Total collateralized financing

     19,061,091        16,696,994        (2,364,097
  

 

 

   

 

 

   

 

 

 

Trading liabilities

     8,191,794       8,213,318       21,524  

Other liabilities

     1,308,510       950,534       (357,976

Long-term borrowings

     7,195,408       7,382,507       187,099  
      

 

 

   

 

 

   

 

 

 

Total liabilities

     40,008,287       37,791,505       (2,216,782
      

 

 

   

 

 

   

 

 

 

Equity

      

NHI shareholders’ equity:

      

Common stock

      

          Authorized

    -    6,000,000,000 shares       

    Issued

    -    3,822,562,601 shares as of March 31, 2017 and       
     3,643,562,601 shares as of March 31, 2018       

    Outstanding

    -    3,528,429,451 shares as of March 31, 2017 and       
     3,392,937,486 shares as of March 31, 2018      594,493       594,493       —    

Additional paid-in capital

     681,329       675,280       (6,049

Retained earnings

     1,663,234       1,696,890       33,656  

Accumulated other comprehensive income (loss)

     33,652       (59,356     (93,008
  

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity before treasury stock

     2,972,708       2,907,307       (65,401

Common stock held in treasury, at cost -

      

                        294,133,150 shares as of March 31, 2017 and

      

                        250,625,115 shares as of March 31, 2018

     (182,792     (157,987     24,805  
  

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity

     2,789,916       2,749,320       (40,596
  

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     53,875       50,504       (3,371
  

 

 

   

 

 

   

 

 

 

Total equity

     2,843,791       2,799,824       (43,967
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     42,852,078        40,591,329        (2,260,749
  

 

 

   

 

 

   

 

 

 

 

– 7 –


Table of Contents

(2) Consolidated Statements of Income

 

     Millions of yen     % Change  
     For the year ended     (B-A)/(A)  
     March 31,
2017(A)
     March 31,
2018(B)
   

Revenue:

       

Commissions

     327,129        373,313       14.1  

Fees from investment banking

     92,580        101,663       9.8  

Asset management and portfolio service fees

     216,479        245,616       13.5  

Net gain on trading

     475,587        442,885       (6.9

Gain (loss) on private equity investments

     1,371        (869     —    

Interest and dividends

     441,036        585,675       32.8  

Gain on investments in equity securities

     7,708        2,683       (65.2

Other

     153,626        221,192       44.0  
  

 

 

    

 

 

   

 

 

 

Total revenue

     1,715,516        1,972,158       15.0  

Interest expense

     312,319        475,189       52.1  
  

 

 

    

 

 

   

 

 

 

Net revenue

     1,403,197        1,496,969       6.7  
  

 

 

    

 

 

   

 

 

 

Non-interest expenses:

       

Compensation and benefits

     496,385        530,641       6.9  

Commissions and floor brokerage

     94,495        99,868       5.7  

Information processing and communications

     175,280        184,781       5.4  

Occupancy and related depreciation

     69,836        67,895       (2.8

Business development expenses

     35,111        36,762       4.7  

Other

     209,295        248,864       18.9  
  

 

 

    

 

 

   

 

 

 

Total non-interest expenses

     1,080,402        1,168,811       8.2  
  

 

 

    

 

 

   

 

 

 

Income before income taxes

     322,795        328,158       1.7  

Income tax expense

     80,229        103,866       29.5  
  

 

 

    

 

 

   

 

 

 

Net income

     242,566        224,292       (7.5
  

 

 

    

 

 

   

 

 

 

Less: Net income attributable to noncontrolling interests

     2,949        4,949       67.8  
  

 

 

    

 

 

   

 

 

 

Net income attributable to NHI shareholders

     239,617        219,343       (8.5
  

 

 

    

 

 

   

 

 

 

Per share of common stock:

       
     Yen     % Change  

Basic-

       

Net income attributable to NHI shareholders per share

     67.29        63.13       (6.2
  

 

 

    

 

 

   

 

 

 

Diluted-

       

Net income attributable to NHI shareholders per share

     65.65        61.88       (5.7
  

 

 

    

 

 

   

 

 

 

 

– 8 –


Table of Contents

(3) Consolidated Statements of Comprehensive Income

 

     Millions of yen     % Change  
   For the year ended     (B-A)/(A)  
   March 31,
2017(A)
    March 31,
2018(B)
   

Net income

     242,566       224,292       (7.5

Other comprehensive income (loss):

      

Change in cumulative translation adjustments:

      

Change in cumulative translation adjustments

     (6,764     (77,067        —    

Deferred income taxes

     1,073       14,263       —    
  

 

 

   

 

 

   

 

 

 

Total

     (5,691     (62,804     —    
  

 

 

   

 

 

   

 

 

 

Defined benefit pension plans:

      

Pension liability adjustments

     (11,340     (10,124     —    

Deferred income taxes

     3,645       3,307       (9.3
  

 

 

   

 

 

   

 

 

 

Total

     (7,695     (6,817     —    
  

 

 

   

 

 

   

 

 

 

Non-trading securities:

      

Net unrealized gain (loss) on non-trading securities

     (9,225     (38,717     —    

Deferred income taxes

     2,625       12,216       365.4  
  

 

 

   

 

 

   

 

 

 

Total

     (6,600     (26,501     —    
  

 

 

   

 

 

   

 

 

 

Own credit adjustments:

      

Own credit adjustments

     (14,696     (2,867     —    

Deferred income taxes

     1,963       383       (80.5
  

 

 

   

 

 

   

 

 

 

Total

     (12,733     (2,484     —    
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (32,719     (98,606     —    
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     209,847       125,686       (40.1

Less: Comprehensive income (loss) attributable to noncontrolling interests

     852       (649     —    
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to NHI shareholders

        208,995          126,335       (39.6
  

 

 

   

 

 

   

 

 

 

 

– 9 –


Table of Contents

(4) Consolidated Statements of Changes in Equity

 

     Millions of yen  
     For the year ended  
     March 31, 2017     March 31, 2018  

Common stock

    

Balance at beginning of year

           594,493             594,493  
  

 

 

   

 

 

 

Balance at end of year

     594,493       594,493  
  

 

 

   

 

 

 

Additional paid-in capital

    

Balance at beginning of year

     692,706       681,329  

Issuance and exercise of common stock options

     (11,377     (5,465

Changes in ownership interests in subsidiaries

     —         (584
  

 

 

   

 

 

 

Balance at end of year

     681,329       675,280  
  

 

 

   

 

 

 

Retained earnings

    

Balance at beginning of year

     1,516,577       1,663,234  

Cumulative effect of change in accounting principle (1)

     (19,294     —    

Net income attributable to NHI shareholders

     239,617       219,343  

Cash dividends

     (70,810     (68,703

Gain (loss) on sales of treasury stock

     (2,856     (5,043

Cancellation of treasury stock

     —         (111,941
  

 

 

   

 

 

 

Balance at end of year

     1,663,234       1,696,890  
  

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

    

Cumulative translation adjustments

    

Balance at beginning of year

     53,418       47,767  

Net change during the year

     (5,651     (63,363
  

 

 

   

 

 

 

Balance at end of year

     47,767       (15,596
  

 

 

   

 

 

 

Defined benefit pension plans

    

Balance at beginning of year

     (33,325     (41,020

Pension liability adjustments

     (7,695     (6,817
  

 

 

   

 

 

 

Balance at end of year

     (41,020     (47,837
  

 

 

   

 

 

 

Non-trading securities

    

Balance at beginning of year

     24,887       20,344  

Net unrealized gain (loss) on non-trading securities

     (4,543     (20,344
  

 

 

   

 

 

 

Balance at end of year

     20,344       —    
  

 

 

   

 

 

 

Own credit adjustments

    

Balance at beginning of year

     —         6,561  

Cumulative effect of change in accounting principle (1)

     19,294       —    

Own credit adjustments

     (12,733     (2,484
  

 

 

   

 

 

 

Balance at end of year

     6,561       4,077  
  

 

 

   

 

 

 

Balance at end of year

     33,652       (59,356
  

 

 

   

 

 

 

Common stock held in treasury

    

Balance at beginning of year

     (148,517     (182,792

Repurchases of common stock

     (61,338     (109,096

Sales of common stock

     1       0  

Common stock issued to employees

     25,796       21,398  

Cancellation of common stock

     —         111,941  

Other net change in treasury stock

     1,266       562  
  

 

 

   

 

 

 

Balance at end of year

     (182,792     (157,987
  

 

 

   

 

 

 

Total NHI shareholders’ equity

    
  

 

 

   

 

 

 

Balance at end of year

     2,789,916       2,749,320  
  

 

 

   

 

 

 

Noncontrolling interests

    

Balance at beginning of year

     42,776       53,875  

Cumulative effect of change in accounting principle (2)

     11,330       —    

Net change during the year

     (231     (3,371
  

 

 

   

 

 

 

Balance at end of year

     53,875       50,504  
  

 

 

   

 

 

 

Total equity

    
  

 

 

   

 

 

 

Balance at end of year

     2,843,791       2,799,824  
  

 

 

   

 

 

 

 

(1) Represents the adjustment to initially apply Accounting Standards Update (“ASU”) 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.”

(2) Represents the adjustment to initially apply ASU 2015-02, “Amendments to the Consolidation analysis.”

 

– 10 –


Table of Contents

(5) Consolidated Statements of Cash Flows

 

     Millions of yen  
   For the year ended  
   March 31, 2017     March 31, 2018  

Cash flows from operating activities:

    

Net income

     242,566       224,292  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     70,928       71,579  

Gain on investments in equity securities

     (7,708     (2,683

Changes in operating assets and liabilities:

    

Time deposits

     (18,275     (100,642

Deposits with stock exchanges and other segregated cash

     (2,854     (72,075

Trading assets and private equity investments

     1,197,062       (240,215

Trading liabilities

     708,196       231,077  

Securities purchased under agreements to resell, net of securities
sold under agreements to repurchase

     635,593       (453,239

Securities borrowed, net of securities loaned

     (1,706,545     763,297  

Other secured borrowings

     (138,204     79,121  

Loans and receivables, net of allowance for doubtful accounts

     (193,786     (932,971

Payables

     531,516       132,960  

Bonus accrual

     4,543       (2,957

Other, net

     (18,007     (143,240
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     1,305,025       (445,696
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Payments for purchases of office buildings, land, equipment and facilities

     (312,880     (285,161

Proceeds from sales of office buildings, land, equipment and facilities

     239,184       224,220  

Payments for purchases of investments in equity securities

     (647     (61

Proceeds from sales of investments in equity securities

     1,998       932  

Increase in loans receivable at banks, net

     (21,322     (105,387

Decrease in non-trading debt securities, net

     88,099       80,634  

Other, net

     (112,483     28,651  
  

 

 

   

 

 

 

Net cash used in investing activities

     (118,051     (56,172
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase in long-term borrowings

     1,526,334       2,314,609  

Decrease in long-term borrowings

     (2,403,076     (1,964,657

Increase (decrease) in short-term borrowings, net

     (81,964     215,001  

Decrease in deposits received at banks, net

     (1,068,168     (13,254

Proceeds from sales of common stock held in treasury

     401       764  

Payments for repurchases of common stock in treasury

     (61,338     (109,096

Payments for cash dividends

     (42,833     (70,199
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (2,130,644     373,168  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     4,249       (53,501
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (939,421     (182,201

Cash and cash equivalents at beginning of the year

     3,476,261       2,536,840  
  

 

 

   

 

 

 

Cash and cash equivalents at end of the year

     2,536,840       2,354,639  
  

 

 

   

 

 

 

(6) Note with respect to the Assumption as a Going Concern

        Not applicable.

 

– 11 –


Table of Contents

(7) Notes to the Consolidated Financial Statements

Segment Information – Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of income.

 

     Millions of yen      % Change  
     For the year ended         
     March 31,
2017 (A)
     March 31,
2018 (B)
     (B-A)/(A)  

Net revenue

        

Business segment information:

        

Retail

     374,434        412,908        10.3  

Asset Management

     99,427        127,337        28.1  

Wholesale

     739,256        715,333        (3.2
  

 

 

    

 

 

    

 

 

 

Subtotal

     1,213,117        1,255,578        3.5  

Other

     183,464        239,493          30.5  
  

 

 

    

 

 

    

 

 

 

Net revenue

     1,396,581        1,495,071        7.1  
  

 

 

    

 

 

    

 

 

 

Reconciliation items:

        

Unrealized gain (loss) on investments in equity securities held for operating purposes

     6,616        1,898        (71.3
  

 

 

    

 

 

    

 

 

 

Net revenue

     1,403,197        1,496,969        6.7  
  

 

 

    

 

 

    

 

 

 

Non-interest expenses

        

Business segment information:

        

Retail

     299,642        309,771        3.4  

Asset Management

     57,094        61,167        7.1  

Wholesale

     577,809        614,745        6.4  
  

 

 

    

 

 

    

 

 

 

Subtotal

     934,545        985,683        5.5  

Other

     145,857        183,128        25.6  
  

 

 

    

 

 

    

 

 

 

Non-interest expenses

     1,080,402        1,168,811        8.2  
  

 

 

    

 

 

    

 

 

 

Reconciliation items:

        

Unrealized gain (loss) on investments in equity securities held for operating purposes

     —          —          —    
  

 

 

    

 

 

    

 

 

 

Non-interest expenses

     1,080,402        1,168,811        8.2  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

        

Business segment information:

        

Retail

     74,792        103,137        37.9  

Asset Management

     42,333        66,170        56.3  

Wholesale

     161,447        100,588        (37.7
  

 

 

    

 

 

    

 

 

 

Subtotal

     278,572        269,895        (3.1

Other*

     37,607        56,365        49.9  
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     316,179        326,260        3.2  
  

 

 

    

 

 

    

 

 

 

Reconciliation items:

        

Unrealized gain (loss) on investments in equity securities held for operating purposes

     6,616        1,898        (71.3
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     322,795        328,158        1.7  
  

 

 

    

 

 

    

 

 

 

 

*  Major components

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

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

     Millions of yen     % Change  
     For the year ended        
     March 31,
2017 (A)
    March 31,
2018 (B)
    (B-A)/(A)  

Net gain (loss) related to economic hedging transactions

     (7,279     (6,461     —    

Realized gain (loss) on investments in equity securities held for operating purposes

     1,092       785       (28.1

Equity in earnings of affiliates

     32,342       34,248       5.9  

Corporate items

     (6,439     (41,884     —    

Other

         17,891           69,677           289.5  
  

 

 

   

 

 

   

 

 

 

Total

     37,607       56,365       49.9  
  

 

 

   

 

 

   

 

 

 

 

– 12 –


Table of Contents

Per share data

   Shareholders’ equity per share is calculated based on the following number of shares.

Number of shares outstanding as of March 31, 2018

     3,392,937,486  

   Net income attributable to NHI shareholders per share calculated based on the following number of shares.

Average number of shares outstanding for the year ended March 31, 2018

     3,474,593,441  

Changes in Tax Laws

On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”) was enacted in the United States which significantly changes US income tax law, including reducing the US federal corporate income tax rate to 21%, broadening the US tax base, introducing a territorial tax system and one time repatriation tax on US entities for previously deferred earnings of non-US investees, allowing full expensing of certain property assets and imposing certain additional taxes on payments made from US entities to foreign related parties.

Nomura has recognized a reduction of 2.8 billion yen in deferred tax liabilities and deferred tax expense as a result of the reduction in the corporate income tax rate which is effective for US entities from January 1, 2018.

Nomura continues to evaluate and assess the other impacts of the Act on our US entities and may recognize further adjustments to deferred tax assets and liabilities, and therefore to income tax expense (benefit), during the fiscal year ending March 31, 2019 depending on, among other things, finalizing of calculations for all impacted entities, changes in certain assumptions and interpretations made by Nomura, certain actions to be taken by Nomura in the future and whether additional guidance is released by the US tax authorities and other bodies.

Significant Subsequent Events

        Not applicable.

 

– 13 –


Table of Contents

(8) Other Financial Information

Consolidated Statements of Income – Quarterly Comparatives

 

    Millions of yen     % Change  
    For the three months ended     (B-A)/(A)  
    June 30,
2016
    September 30,
2016
    December 31,
2016
    March 31,
2017
    June 30,
2017
    September 30,
2017
    December 31,
2017(A)
    March 31,
2018(B)
   

Revenue:

                 

Commissions

    76,255       74,640       86,257       89,977       90,968       85,324       101,655       95,366       (6.2

Fees from investment banking

    17,313       23,353       23,743       28,171       22,707       27,083       29,289       22,584       (22.9

Asset management and portfolio service fees

    52,612       52,140       55,106       56,621       58,343       61,212       63,767       62,294       (2.3

Net gain on trading

    140,143       118,758       108,385       108,301       120,467       88,391       87,725       146,302       66.8  

Gain (loss) on private equity investments

    (13     (420     596       1,208       359       (330     (2,381     1,483       —    

Interest and dividends

    106,551       108,863       117,383       108,239       134,392       141,612       161,445       148,226       (8.2

Gain (loss) on investments in equity securities

    (9,966     7,654       12,865       (2,845     62       3,060       4,532       (4,971     —    

Other

    35,517       41,121       39,549       37,439       40,628       56,037       84,597       39,930       (52.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    418,412       426,109       443,884       427,111       467,926       462,389       530,629       511,214       (3.7

Interest expense

    79,932       79,114       75,239       78,034       107,103       110,896       124,013       133,177       7.4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    338,480       346,995       368,645       349,077       360,823       351,493       406,616       378,037       (7.0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses:

                 

Compensation and benefits

    125,949       127,969       127,592       114,875       136,249       122,035       131,372       140,985       7.3  

Commissions and floor brokerage

    24,172       22,867       22,977       24,479       23,775       25,242       25,252       25,599       1.4  

Information processing and communications

    44,249       41,601       42,152       47,278       44,569       47,263       49,049       43,900       (10.5

Occupancy and related depreciation

    18,228       16,803       16,879       17,926       17,056       17,209       16,805       16,825       0.1  

Business development expenses

    8,296       6,881       8,848       11,086       8,409       7,823       9,801       10,729       9.5  

Other

    54,821       49,100       54,249       51,125       53,322       48,882       53,584       93,076         73.7  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest expenses

    275,715       265,221       272,697       266,769       283,380       268,454       285,863       331,114       15.8  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    62,765       81,774       95,948       82,308       77,443       83,039       120,753       46,923       (61.1

Income tax expense

    15,791       19,721       25,218       19,499       19,405       29,423       30,960       24,078       (22.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    46,974       62,053       70,730       62,809       58,038       53,616       89,793       22,845       (74.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income attributable to noncontrolling interests

    149       873       384       1,543       1,182       1,766       1,831       170       (90.7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to NHI shareholders

      46,825          61,180          70,346          61,266          56,856          51,850          87,962          22,675        (74.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Yen     % Change  

Per share of common stock:

 

Basic-

                 

Net income attributable to NHI shareholders per share

    13.00       17.10       19.89       17.38       16.07       14.70       25.55       6.68       (73.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted-

                 

Net income attributable to NHI shareholders per share

    12.71       16.68       19.44       17.00       15.77       14.45       25.12       6.56       (73.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents

Business Segment Information – Quarterly Comparatives

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.

 

    Millions of yen     % Change  
    For the three months ended        
    June 30,
2016
    September 30,
2016
    December 31,
2016
    March 31,
2017
    June 30,
2017
    September 30,
2017
    December 31,
2017(A)
    March 31,
2018(B)
    (B-A)/(A)  

Net revenue

                 

Business segment information:

                 

Retail

    83,751       86,164       101,342       103,177       101,684       101,786       111,284       98,154       (11.8

Asset Management

    25,934       21,277       28,907       23,309       28,097       35,418       36,503       27,319       (25.2

Wholesale

    190,932       179,863       197,285       171,176       179,316       158,963       165,648       211,406       27.6  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    300,617       287,304       327,534       297,662       309,097       296,167       313,435       336,879       7.5  

Other

    48,411       52,111       28,691       54,251       51,707       52,610       89,023       46,153       (48.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    349,028       339,415       356,225       351,913       360,804       348,777       402,458       383,032       (4.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

                 

Unrealized gain (loss) on investments in equity securities held for operating purposes

    (10,548     7,580       12,420       (2,836     19       2,716       4,158       (4,995     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    338,480       346,995       368,645       349,077       360,823       351,493       406,616       378,037       (7.0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

                 

Business segment information:

                 

Retail

    75,086       71,754       75,393       77,409       76,792       76,239       79,997       76,743       (4.1

Asset Management

    13,695       13,844       14,919       14,636       14,527       14,950       15,671       16,019       2.2  

Wholesale

    144,290       140,596       149,871       143,052       153,963       141,980       151,602       167,200       10.3  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    233,071       226,194       240,183       235,097       245,282       233,169       247,270       259,962       5.1  

Other

    42,644       39,027       32,514       31,672       38,098       35,285       38,593       71,152       84.4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

    275,715       265,221       272,697       266,769       283,380       268,454       285,863       331,114       15.8  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

                 

Unrealized gain (loss) on investments in equity securities held for operating purposes

    —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

    275,715       265,221       272,697       266,769       283,380       268,454       285,863       331,114       15.8  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

                 

Business segment information:

                 

Retail

    8,665       14,410       25,949       25,768       24,892       25,547       31,287       21,411       (31.6

Asset Management

    12,239       7,433       13,988       8,673       13,570       20,468       20,832       11,300       (45.8

Wholesale

    46,642       39,267       47,414       28,124       25,353       16,983       14,046       44,206       214.7  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    67,546       61,110       87,351       62,565       63,815       62,998       66,165       76,917       16.3  

Other*

    5,767       13,084       (3,823     22,579       13,609       17,325       50,430       (24,999     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

      73,313         74,194         83,528         85,144         77,424         80,323       116,595         51,918       (55.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

                 

Unrealized gain (loss) on investments in equity securities held for operating purposes

    (10,548     7,580       12,420       (2,836     19       2,716       4,158       (4,995     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

      62,765          81,774          95,948          82,308          77,443          83,039        120,753          46,923        (61.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*  Major components

 

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

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

    Millions of yen     % Change  
    For the three months ended        
    June 30,
2016
    September 30,
2016
    December 31,
2016
    March 31,
2017
    June 30,
2017
    September 30,
2017
    December 31,
2017(A)
    March 31,
2018(B)
    (B-A)/(A)  

Net gain (loss) related to economic hedging transactions

    11,974       (4,119     (15,948     814       (654     558       (8,019     1,654       —    

Realized gain (loss) on investments in equity securities held for operating purposes

    582       74       445       (9     43       344        374       24       (93.6

Equity in earnings of affiliates

        1,058         10,945         10,960           9,379           7,022           8,408           7,801         11,017         41.2  

Corporate items

    (4,306     (5,266     (769     3,902       154       1,597       (3,386     (40,249     —    

Other

    (3,541     11,450       1,489       8,493       7,044       6,418       53,660       2,555       (95.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     5,767        13,084        (3,823      22,579        13,609        17,325        50,430        (24,999     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents
4. Other Information

Reclassification in the Consolidated Balance Sheets

From the year ended in March 31, 2018, certain changes in scope of Receivables from customers, Receivables from other than customers, Payables to customers and Payables to other than customers have been made by revisiting the definition of customers in our consolidated balance sheets. We have reclassified previously reported amounts of Receivables from other than customers to Receivables from customers by 159.7 billion yen, from Other assets – Other to Receivables from other than customers by 88.7 billion yen and from Payables to other than customers to Payables to customers by 60.3 billion yen respectively to conform to the current presentation.

Financial information for Nomura Securities Co., Ltd. can be found on the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2018_4q.pdf

 

– 16 –