6-K 1 d676860d6k.htm FORM 6-K FORM 6-K
Table of Contents

 

 

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 February 2019

 

 

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):         

 

 

 


Table of Contents

Information furnished on this form:

EXHIBIT

Exhibit Number

 

1.

Consolidated Results of Operations (US GAAP), Third quarter, year ending March 2019


Table of Contents

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: February 7, 2019   By:   

/s/ Hajime Ikeda

     Hajime Ikeda
     Senior Managing Director


Table of Contents

    

LOGO

 

Connecting Markets East & West Consolidated Results of Operations Third quarter, year ending March 2019 (US GAAP) Nomura Holdings, Inc. January 2019 © Nomura


Table of Contents

LOGO

 

Outline

Presentation Financial Supplement

Executive summary (p. 2-4) Consolidated balance sheet (p. 18) Overview of results (p. 5) Value at risk (p. 19) Business segment results (p. 6) Consolidated financial highlights (p. 20) Retail (p. 7-8) Consolidated income (p. 21) Asset Management (p. 9-10) Main revenue items (p. 22)

Wholesale (p. 11-13)Consolidated results: Income (loss) before income taxes by segment and region (p. 23) Non-interest expenses (p. 14) Robust financial position (p. 15) Segment “Other” (p. 24) Funding and liquidity (p. 16) Retail related data (p. 25-28) Asset Management related data (p. 29-30)

Wholesale related data (p. 31)

Number of employees (p. 32)


Table of Contents

LOGO

 

Executive summary (1/2) Highlights: FY2018/19 1Q-3Q Loss before income taxes: Y62.1bn; Net loss1 Y101.3bn; EPS2:-Y30.03 Marked decline YoY in three segment performance driven by US-China trade friction, emerging market turmoil and widening of credit spreads Booked goodwill impairment charge (-Y81.4bn) attributable to Wholesale in 3Q Results outside the three business segments were negatively impacted by one-off factors3 in 2Q and an unrealized loss on securities due to lower stock prices FY2017/18 FY2018/19 Income (loss) before income taxes: Business FY2017/18 FY2018/19 YoY YoY 1Q-3Q 1Q-3Q segment results 1Q-3Q 1Q-3Q Retail Y81.7bn Y46.2bn -43% Net revenue Y1,118.9bn Y815.5bn -27% Asset Management Y54.9bn Y19.8bn -64% Income (loss) before Y281.2bn -Y62.1bn—income taxes Wholesale Y56.4bn -Y98.4bn—Net income (loss)1 Y196.7bn -Y101.3bn—Subtotal Y193.0bn -Y32.4bn— 2 Other Y81.4bn -Y20.6bn—EPS Y55.12 -Y30.03—Unrealized gain/loss on investments in equity Y6.9bn -Y9.0bn—securities held for operating purposes ROE4 9.3% — Income (loss) before income taxes Y281.2bn -Y62.1bn— 1. Net income (loss) attributable to Nomura Holdings shareholders.    2.    Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 2 3. Expenses related to settlement with US DoJ over legacy transactions (-Y19.8bn), recognition of FX translation adjustment due to progress in winding up subsidiary in Middle East & Africa (-Y7.0bn) 4.    Calculated using annualized net income attributable to Nomura Holdings shareholders for each period


Table of Contents

LOGO

 

FY2018/19 1-3Q Factors behind loss before income taxes Changes from same period last year (billions of yen) 281.2 Retail Retail -35.5 Asset 81.7 Management -35.1 Asset Booked in FY2017/18 of which, loss Management related to ACI1 Wholesale 54.9 Approx. -30 FX translation Booked in FY2018/19 adjustment due to progress in Wholesale Gain on sale Goodwill winding up 56.4 of stake in impairment EMEA 2 JAFCO not FX translation charge subsidiary not Unrealized gain -81.0 present in adjustment due Expenses present in Unrealized (loss) on investments FY2018/19 to progress in related to FY2018/19 gain (loss) Other in equity securities -154.8 winding up settlement on 81.4 held for operating -9.0 subsidiary in with US DoJ investments purposes Middle East & over legacy Unrealized gain in equity 6.9 North Africa transactions (loss) on securities -45.4 investments in held for -7.0 Mebuki FG operating -19.8 Others2 purposes -18.3 -2.5 -15.9 -62.1 Other -102.0 FY2017/18 FY2018/19 1Q-3Q 1Q-3Q 1. American Century Investments 3 2. Goodwill impairment charge (Y81.4bn) attributable to Wholesale is booked as Y81bn in Wholesale and Y0.4bn in segment Other.


Table of Contents

LOGO

 

Executive summary (2/2)

Income (loss) before income taxes and    Highlights: FY2018/19 3Q net income (loss)1

Firm-wide (billions of yen)

120.8 Income before income taxes

Loss before income taxes: Y76.2bn; Net loss1: Y95.3bn; EPS2:-Y28.52

Net income (loss)

– Retail reported higher revenues, while Wholesale and Asset Management performance declined 77.4 83.0 88.0 significantly 56.9

46.9 51.9

– In segment Other, one-off factors3 in 2Q were absent 22.7 13.6

5.2 0.5     -11.2

Three segment loss before income taxes totaled Y81.3bn

-76.2

Retail -95.3

– Although transactions for investment trusts and foreign stocks were sluggish, net revenue increased FY2017/18 FY2018/19 QoQ mainly on contribution from large IPO    1Q 2Q 3Q 4Q 1Q 2Q 3Q

– Stronger net inflows of cash and securities +Y1.76trn    Three segment income (loss) before income taxes

Wholesale

76.9 Asset Management

Asset Management 66.2

63.8 63.0 Retail

– Assets under management fell on market factors despite 10 straight quarters of inflows    22.8

26.0

– Loss related to American Century Investments increased QoQ to Y8.3bn following mark-to-market valuation

Wholesale

– Equities had a strong quarter and Investment Banking reported higher revenues, but uncertain market conditions and widening of credit spreads contributed to slower Fixed Income performance -81.3

– Goodwill impairment charge (-Y81.0bn) had a substantial negative impact on Wholesale results FY2017/18 FY2018/19

1Q 2Q 3Q 4Q 1Q 2Q 3Q

1. Net income (loss) attributable to Nomura Holdings shareholders. 4

2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share.

3. Expenses related to settlement with US DoJ over legacy transactions (-Y19.8bn), recognition of FX translation adjustment due to progress in winding up subsidiary in Middle East & Africa (-Y7.0bn)


Table of Contents

LOGO

 

Overview of results

Highlights

(billions of yen, except EPS and ROE)

FY2018/19 FY2018/19 FY2017/18

QoQ YoY

3Q 2Q 3Q

Net revenue 260.6 282.9 -8% 406.6 -36%

Non-interest expenses 336.8 282.5 +19% 285.9 +18%

Income (loss) before income

-76.2 0.5—120.8—taxes

Net income (loss)1 -95.3 -11.2—88.0—

EPS 2 -Y28.52 -Y3.32—Y25.12—

ROE 3 — 12.4%

1. Net income (loss) attributable to Nomura Holdings shareholders.

2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 5

3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period.


Table of Contents

LOGO

 

Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2018/19 FY2018/19 3Q QoQ YoY 1Q-3Q YoY Net revenue Retail 86.8 1% -22% 265.3 -16% Asset Management 16.2 -34% -56% 66.9 -33% Wholesale 128.2 -13% -23% 413.1 -18% Subtotal 231.2 -10% -26% 745.4 -19% Other* 39.4 52% -56% 79.1 -59% Unrealized gain (loss) on investments in equity -10.0-9.0 -securities held for operating purposes Net revenue 260.6 -8% -36% 815.5 -27% Income (loss) Retail 14.0 15% -55% 46.2 -43% before income Asset Management 0.6 -94% -97% 19.8 -64% taxes Wholesale -95.9-98.4 -Subtotal -81.3-32.4 -Other* 15.1—-70% -20.6 -Unrealized gain (loss) on investments in equity -10.0-9.0 -securities held for operating purposes Income (loss) before income taxes -76.2-62.1 - *Additional information on “Other” (3Q) ï® Gain related to economic hedging (Y25.1bn) Loss on changes to own and counterparty credit spread relating to Derivatives (-Y0.4bn) 6


Table of Contents

LOGO

 

Retail Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y86.8bn (+1% QoQ; -22% YoY) FY2017/18 FY2018/19 ï® Income before income taxes: Y14.0bn (+15% QoQ; -55% YoY) QoQ YoY 3Q 4Q 1Q 2Q 3Q ï® Bear market weighed on investor sentiment; Investment trusts and foreign stock transactions remained weak Net revenue 111.3 98.2 92.8 85.7 86.8 +1% -22% ï® Large IPO helped keep revenues flat QoQ Non-interest expenses 80.0 76.7 72.9 73.5 72.7 -1% -9% ï® Client franchise Dec / 3Q Sep / 2Q - Retail client assets Y110.0trn Y122.8trn Income before income taxes 31.3 21.4 19.9 12.2 14.0 +15% -55%—Accounts with balance 5.35m 5.32m - NISA accounts opened (accumulated)1 1.69m 1.67m - Net inflows of cash and securities2 Y1,762.2bn Y681.6bn Total sales3 (billions of yen) Total sales3 up 22% QoQ Stocks Bonds Investment trusts Discretionary investments, Insurance products 4,000 Stocks: +52% QoQ – Subscriptions for primary stocks4 increased to Y558.3bn (5.3x QoQ) and 3,000 sales of secondary stocks improved QoQ Investment trusts: -23% QoQ 2,000 – Sales remained weak on the back of a drop off in investor sentiment; Inflows booked into impact investing focused US stock fund 1,000 Bonds: Y445.9bn; +7% QoQ – Sales of JGBs for individuals increased 15% QoQ to Y237.6bn 0 FY2017/18 FY2018/19 – Sales of foreign bonds declined from previous quarter which included a significant contribution from primary transactions 3Q 4Q 1Q 2Q 3Q 1. Includes Junior NISA. 2. Cash and securities inflows minus outflows, excluding regional financial institutions. 7 Sales of discretionary investments and insurance decreased 17% QoQ 3. Retail channels only.    4. Retail channels, Net & Call, and Hotto Direct


Table of Contents

LOGO

 

Retail: Continue to grow client franchise Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue down slightly QoQ; Despite continued net inflows into Recurring revenue cost coverage ratio (rhs) discretionary investments, fee-based AuM declined due to market factors 100.0 31% 31% 31% 28% 29%—Managed costs to maintain recurring revenue cost coverage ratio of 31% 30% 80.0 Dec / 3Q    Sep / 2Q 20% Recurring revenue Y22.7bn Y22.9bn 60.0 89.2 90.0 90.4 90.9 89.9 – Investment trust net inflows1 -Y62.9bn -Y60.2bn 10% – Discretionary investment new inflows1 Y44.2bn Y83.8bn 40.0 20.0 0% Sales of insurance products2 Y53.2bn Y46.8bn FY2017/18 FY2018/19 ï® Inflows of cash and securities2 Y1,318.4bn Y1,039.7bn 3Q 4Q 1Q 2Q 3Q Discretionary investment AuM Net inflows of cash and securities3 (billions of yen) 1 (billions of yen) Quarterly net inflows IPO subscriptions 2,843.8 ï® Large deposits of stocks 1,762.2 2,800 2,716.2 83.8 2,730.3 ï® JGBs for individuals, etc. 2,682.2 2,662.8                 57.8 44.2 681.6 79.4 58.8 2,600 2,400 2,200 -14.0 -36.5 2,000 -196.1 FY2017/18 FY2018/19 FY2017/18 FY2018/19 3Q / Dec 4Q / Mar 1Q / Jun 2Q / Sep 3Q / Dec 3Q 4Q 1Q 2Q 3Q 1. Retail channels and Japan Wealth Management Group. 8 2. Retail channels only.                3.    Cash and securities inflows minus outflows, excluding regional financial institutions


Table of Contents

LOGO

 

Net revenue and income before income taxes1 Key points (billions of yen) ï® Net revenue: Y16.2bn (-34% QoQ; -56% YoY) FY2017/18 FY2018/19 ï® Income before income taxes: Y0.6bn (-94% QoQ; -97% YoY) QoQ YoY - Despite continued inflows, AuM declined due to market factors 3Q 4Q 1Q 2Q 3Q - Loss related to American Century Investments increased QoQ to Y8.3bn Net revenue 36.5 27.3 26.1 24.7 16.2 -34% -56% following mark-to-market valuation Non-interest expenses 15.7 16.0 15.8 15.8 15.6 -1% -0.3% Investment trust business ï® Inflows up 4x QoQ driven mainly by ETFs Income before income taxes 20.8 11.3 10.3 8.9 0.6 -94% -97% – ETFs: Inflows (Y1.4trn) at second highest level ever (Dec. AuM: Y15.2trn)—Funds for discretionary investments and wrap accounts booked inflows on Assets under management (net)2 increase in new contracts - Publicly offered funds (excl. ETFs): Inflows into Nomura ACI Advanced (trillions of yen) Investment trust business Investment advisory business Medical Impact Investment launched in Oct. (Dec. AuM: Y116.8bn) 50.7 50.8 52.8 50.0 48.3 16.4 16.2 16.8 15.9 15.1 Investment advisory business and international businesses Outflows from large public pension fund in Japan Internationally, US high-yield funds saw excess redemptions by US 34.3 34.1 34.7 36.0 33.3 institutional investors, while in EMEA the UCITS3 JSV4 fund reported outflows due to redemptions and a decline in overall mandate level FY2017/18 FY2018/19 Dec Mar Jun Sep Dec 1. Figures from FY2018/19 1Q onwards do not include Nomura Funds Research and Technologies. 2. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management, and Wealth Square. Figures from June 2018 do not include Nomura Funds Research and Technologies. 9 3. Undertakings for Collective Investment in Transferable Securities                4. Japan Strategic Value


Table of Contents

LOGO

 

Nomura Asset Management share of public investment trust Flow of funds1 market2 (billions of yen) 28.0% 27.7% Investment trust business Investment advisory business 27.4% 27.3% 27.3% 1,404 26.9% 1,500 787 248 1,000 718 26.0% 1,156 372 436 1,141 500 773 156 263 109 280 0 -55 -354 24.0% -500 FY2017/18 FY2018/19 FY2017/18 FY2018/19 3Q 4Q 1Q 2Q 3Q Dec Mar Jun Sep Dec Flow of funds in investment trust business1 NCRAM3 AuM growing over medium term on highly rated performance (billions of yen) MRFs, MMFs, etc. (trillions of yen) ï® Expanded client Investment trust business AuM: +Y1trn (incl. inflows: +Y0.9trn) ETF franchise (excl. ETFs) Other investment trusts (excl. ETFs) 2,000 1,740 2.9—Latin American 2.7 2.8 2.6 1,500 1,391 0.1 pension funds 2.4 0.0 0.4 —Embedded 1,000 products for 0.5 580 510 1.6 500 individual clients 193 147 0.2 in US managed 116 0 by ACI4 -584 -250 -230 -500ï® Developed -1,000 Flow of funds in NCRAM -0.1 product lineup FY2017/18 FY2018/19 FY2015/16FY2016/17FY2017/18 FY2018/19—Global high yield 3Q 4Q 1Q 2Q 3Q FY/Mar FY/Mar FY/Mar 1Q/Jun 2Q/Sep 3Q/Dec strategy, etc. 10 1. Based on assets under management (net)    2.    Source: The Investment Trusts Association, Japan    3.    Nomura Corporate Research and Asset Management    4.    American Century Investments


Table of Contents

LOGO

 

Net revenue1, income (loss) before income taxes2 Key points

(billions of yen) -23% YoY)

ï®Net revenue: Y128.2bn (-13% QoQ;

FY2017/18 FY2018/19 QoQ YoY ï®Loss before income taxes: Y95.9bn

3Q 4Q 1Q 2Q 3Q

Robust performance in Equities offset by weaker quarter in Fixed Income in    Global Markets 137.6 180.0 112.2 123.8 103.5 -16% -25% Japan, Americas and AEJ due to market uncertainties and credit spread widening

Investment Banking 28.1 31.4 25.1 23.9 24.7 +4% -12%

Investment Banking reported slightly higher revenues QoQ

Net revenue 165.6 211.4 137.3 147.7 128.2 -13% -23% ï®Loss before income taxes driven by substantial increase in expenses due to goodwill impairment charge (Y81.0bn)

Non-interest expenses 151.6 167.2 144.7 142.7 224.1 +57% +48%

Income (loss) before income Net revenue by region (QoQ; YoY) 14.0 44.2 -7.4 4.9 -95.9 — ï®Japan: Y49.0bn (-18%; -26%) taxes

- Equities revenues increased, while Fixed Income was sluggish, mainly in

Net revenue by region Rates and Credit

- Investment Banking played leading role as joint global coordinator of Japan’s

(billions of yen) largest-ever IPO

200.0Americas: Y41.3bn (-4%; -22%)

68.1—Equity Derivatives had a strong quarter, monetizing market volatility; Cash Equities revenues increased QoQ

150.0

53.2—Fixed Income slowed, primarily in Rates and Credit

42.9 Americas

48.1 49.9 100.0 41.3

27.6 24.5 EMEA EMEA:

Y27.3bn (+11%; -1%)

18.5 32.1 29.2 27.3

20.3—All business lines reported stronger revenues QoQ

10.6 AEJ

50.0 16.7 66.4 63.0 59.9

41.5 49.0 Japanï®AEJ: Y10.6bn (-48%; -43%)

0.0 FY2017/18 FY2018/19—Fixed Income revenues declined driven by Credit and FX & EM

- Equity Derivatives performance declined QoQ

3Q 4Q 1Q 2Q 3Q

1. FY2017/18 figures for Fixed Income, Equities and Investment Banking have been restated based on a reorganization in April 2018.

2. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and revenues and expenses related to certain Execution Services transactions are now shown 11 as net value rather than gross value. As a result, revenues and expenses for FY2018/19 1Q, 2Q and 3Q declined by approx. 4.6 billion yen, approx. 4.1 billion yen and approx. 4.7 billion yen respectively.


Table of Contents

LOGO

 

Net revenue1 FY2018/19 3Q net revenue by region

(billions of yen) Equities

Changes in

Fixed Income accounting policies2 YoY QoQ

180.0 Global Markets Global QoQ

137.6 Markets Fixed

84.4 -16% Equities 123.8 Income

112.2

103.5 YoY

60.9

54.2 -25% Americas

54.5

65.9

95.7 76.7 69.6 EMEA

57.7

37.5

FY2017/18 FY2018/19 AEJ

3Q 4Q 1Q 2Q 3Q

Key points Japan

Net revenue: Y103.5bn (-16% QoQ; -25% YoY)

0% ~ ±5%                ±5% ~ ±15%                ±15% ~

- Equities reported strong revenue growth on an uptick in client activity, while Fixed Income declined due to challenging market conditions ï® Americas: Equities reported a recovery in Cash and strong performance in Derivatives, while Fixed Income slowed in Rates and Credit Fixed Income ï® Net revenue: Y37.5bn (-46% QoQ; -51% YoY) EMEA: QoQ rebound in Credit driven by pick-up in Financing activity

- Sluggish performance in Rates and FX & EM due to uncertain market ï® environment, exacerbated by impact in Credit performance from widening    of spreads ï® AEJ: FX & EM and Credit slowed down from last quarter, while Equities performance was impacted by decline in Derivatives    Equities ï® Net revenue: Y65.9bn (+22% QoQ; +8% YoY)—Derivatives monetized higher activity and volatility to deliver stronger ï® Japan: Equities saw strong performance in Derivatives, while slowdown in revenues in Americas and Japan; Cash Equities was flat QoQ Rates and Credit drove down Fixed Income results

1. FY2017/18 figures for Fixed Income, Equities and Investment Banking have been restated based on a reorganization in April 2018.

2. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and revenues and expenses related to certain Execution Services transactions are now shown as net value 12 rather than gross value. As a result, revenues and expenses for FY2018/19 1Q, 2Q and 3Q declined by approx. 4.6 billion yen, approx. 4.1 billion yen, approx. 4.7 billion yen respectively.


Table of Contents

LOGO

 

Cross-border deals

Net revenue1 Won multiple high-profile /cross-border mandates

(billions of yen)

31.4 Softbank 28.1 Global IPO

(Y2.6trn)

25.1 24.7 QoQ 23.9 +4%

Tokyu Fudosan Holdings Societe Generale (France) YoY Global PO Samurai Bond -12% (Y58.2bn) (Y160bn)

ECM /

DCM SolarWinds (US) Bank of China IPO Euro-Yen Green Bond

($375m) (Y30bn)

Park24 Diageo Finance (UK) FY2017/18 FY2018/19 Euro-Yen CB EUR Denominated Bond

3Q 4Q 1Q 2Q 3Q (Y35.9bn) (€2.0bn)

Key points Electricite De France’s (France)

Johnson & Johnson’s (US) sale of Dunkerque LNG SAS

ï® Net revenue: Y24.7bn (+4% QoQ; -12% YoY) acquisition of Ci:z Holdings

(France) to Investor Group (Y229.8bn)

- Net revenue up QoQ driven by a mega IPO transaction as well as multiple (€1,800m) cross-border transactions

L Catterton’s (US) sale of Japan Verisure Holdings’ (Switzerland) OneSpaWorld to Refinancing

 Supported SoftBank’s global IPO leveraging capabilities from across the Haymaker Acquisition Corp (US)

(€1.0bn) firm ($948m)

M&A, etc.

 Participated in multiple group restructuring and industry consolidation Heineken’s (Netherlands) strategic Sazerac’s (US) acquisition of

M&A transactions partnership with China Resources 19 US brands from Diageo (UK)

International Beer

($550m)  (HKD24bn/$300m)

Solutions revenues increased on uptick in demand for hedging transactions driven by higher market volatility Acquisition financing in support of SHOWA SHELL SEKIYU’s

Vestar Capital Partners’ (US) business integration with Idemitsu

 Effects of deteriorating market conditions included execution timing buyout of Information Resources (US) Kosan delays, etc. ($1.7bn) (Y764.5bn)

13

1. FY2017/18 figures for Fixed Income, Equities and Investment Banking have been restated based on a reorganization in April 2018.


Table of Contents

LOGO

 

Full year Quarter Key points

(billions of yen) (billions of yen) ï® Non-interest expenses: Y336.8bn 1,500 (+19% QoQ)

400

1,168.8 331.1 336.8 – Compensation and benefits (-5% QoQ)

Other

1,080.4 Decline in bonus provisions in line with

285.9 282.5 300 performance Business development 1,000 258.4 expenses

– Commissions and floor brokerage

Occupancy and related (+22% QoQ) depreciation 200

Information processing Increased along with trading volumes and communications 500 Increased commissions related to

Commissions and floor large IPO 100 brokerage¹

Compensation and – Other (+80% QoQ) benefits 0 Booked goodwill impairment charge of

0

Y81.4bn attributable to Wholesale

FY2017/18 FY2018/19

FY2016/17 FY2017/18 QoQ

3Q 4Q 1Q 2Q 3Q

Compensation and benefits 496.4 530.6 131.4 141.0 127.7 125.8 118.9 -5.5% Commissions and floor brokerage¹ 94.5 99.9 25.3 25.6 20.9 19.6 23.8 21.7%

Inf ormation processing and communications 175.3 184.8 49.0 43.9 41.0 40.5 41.8 3.1%

Occupancy and related depreciation 69.8 67.9 16.8 16.8 16.4 16.5 15.9 -3.7% Business development expenses 35.1 36.8 9.8 10.7 8.9 9.3 9.1 -2.3% Other 209.3 248.9 53.6 93.1 43.5 70.8 127.3 79.9% Total 1,080.4 1,168.8 285.9 331.1 258.4 282.5 336.8 19.2%

1. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and revenues and expenses related to certain Execution Services transactions are now shown as net value 14 rather than gross value. As a result, revenues and expenses for FY2018/19 1Q, 2Q and 3Q declined by approx. 4.6 billion yen, approx. 4.1 billion yen and approx. 4.7 billion yen respectively.


Table of Contents

LOGO

 

Balance sheet related indicators1 and capital ratios RWA and CET 1 capital ratio4

(trillions of yen)

Mar 2018 Sep 2018 Dec 2018 RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs)

20.0 17.3% 17.8% 20.0%

ï® Total assets Y40.3trn Y45.4trn Y45.1trn 16.5% 17.0% 16.1%

ï® Shareholders’ equity Y2.7trn Y2.8trn Y2.7trn 15.0 15.0%ï® Gross leverage 14.7x 16.2x 16.9x

10.0 10.0%

Net leverage2 8.8x 9.1x 9.9x

3 5.0 5.0%

ï® Level 3 assets

Y0.5trn Y0.6trn Y0.6trn

(net) 0.0 0.0%

ï® Liquidity portfolio Y4.6trn Y5.0trn Y5.0trn FY2017/18 FY2018/19

Dec Mar Jun Sep Dec

(billions of yen) 3

Mar Sep Dec

Basel 3 basis 2018 2018 2018 Level 3 assets3 and Net Level 3 assets/Tier 1 capital

Tier 1 capital 2,666 2,714 2,637 (billions of yen)

Tier 2 capital 66 61 61 Level 3 Assets Net Level 3 Assets Net Level 3 Assets / Tier 1 Capital

Total capital 2,732 2,775 2,698 800 30% RWA 15,122 14,981 13,824 20% 22%

600

Tier 1 capital ratio 17.6% 18.1% 19.0% 18% 18% 18% 20% CET 1 capital ratio4 16.5% 17.0% 17.8%

400

Consolidated capital 10% 18.1% 18.5% 19.5% adequacy ratio 200 Consolidated leverage ratio5 4.74% 4.45% 4.46%

0 0%

HQLA6 Y4.0trn Y4.4trn Y4.5trn

FY2017/18 FY2018/19

LCR6 153.6% 191.1% 196.7% Dec Mar Jun Sep Dec

1. Balance sheet as of Mar 2018 was revised. Please refer to page 18 for further details.

2. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity.                3. December 2018 is preliminary.    

4.                CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital divided by risk-weighted assets.                15

5.    Tier1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items).                6. Daily average for each quarter.


Table of Contents

 

LOGO

 

Balance sheet Balance sheet structure (As of December 2018) Assets Liabilities and equity ï® Highly liquid, healthy balance sheet 2 Unsecured funding structure – 80% of assets are highly liquid Approx. 80% of unsecured funding ï® is trading and related assets that are long-term debt marked-to-market and matched to Diversified sources of funding ï® trading and related liabilities through Short-term debt repos etc. (regionally and by Trading liabilities 17% Long-term debt due currency) and related1 Trading assets within 1yr, 5% – Other assets are funded by equity 1 and related International and long-term debt, ensuring 26% structural stability Loans Bank lending Long-term market Liquidity portfolio2 Other liabilities debt, 78% Euro MTN/Yen, Retail Average retail bonds, etc. Short-term borrowings market maturity    Japan 5.9 years3 Liquidity portfolio: Cash and cash deposits Long-term ï® borrowings 74% Euro – Y5.0trn, or 11% of total assets Other assets MTN/Other, Wholesale Total equity wholesale market – Maintain a high quality liquidity bonds, etc. portfolio surplus without the need for additional unsecured funding Breakdown of Long-term Funding of short-term/long- debt by long-term over a certain period term debt region debt 1. Trading assets and related: Reverse repo, securities, derivatives, etc. Trading liabilities and related: Repo, securities loaned, derivatives, etc. 2. Definition differs from financial disclosures reflecting Liquidity Management’s view. Cash and cash deposits portion of liquidity portfolio excludes funds on deposit at exchanges and segregated client funds. 16 3. Excludes long-term debt due within one year. Redemption schedule is individually estimated by considering the probability of redemption under certain stressed scenarios.


Table of Contents

LOGO

 

Financial Supplement


Table of Contents

LOGO

 

Consolidated balance sheet Consolidated balance sheet1 (billions of yen) Mar 31, Dec 31, Increase Mar 31, Dec 31, Increase 2018 2018 (Decrease) 2018 2018 (Decrease) Assets Liabilities Total cash and cash deposits 2,959 3,080 121 Short-term borrowings 743 808 65 Total payables and deposits 3,568 3,715 147 Total loans and receivables 3,875 3,872 -3 Total collateralized financing 16,697 21,710 5,013 Trading liabilities 8,203 7,692 -511 Total collateralized agreements 16,238 18,623 2,385 Other liabilities 951 738 -212 Long-term borrowings 7,383 7,743 360 Total trading assets2 and private 14,980 17,537 2,556 Total liabilities 37,544 42,407 4,863 equity investments Total other assets 2,292 2,001 -291 Equity Total NHI shareholders’ equity 2,749 2,663 -86 Noncontrolling interest 51 43 -7 Total assets 40,344 45,113 4,769 Total liabilities and equity 40,344 45,113 4,769 1.    Cash margin collected from clients and remitted to central clearing houses was reflected on Nomura’s consolidated balance sheets. However, with effect from April 1, 2018, revisiting nature of the transactions, Nomura has revised its accounting policy for when such balances are recognized on Nomura’s consolidated group balance sheet and as a result, certain cash margin amounts held on behalf of clients as well as an equivalent amount reflecting the obligation to return such amounts to clients are no longer recognized on the balance sheet if certain criteria are met. Nomura has restated previously reported amounts of Receivables from other than customers decreased by 237.0 billion yen and Payables to other than customers decreased by 237.0 billion yen, respectively, to conform to the current presentation. Also, daily variation margin for certain derivative transactions traded in Japan was reflected on Nomura’s consolidated balance sheets. However, from April 1, 2018, Nomura changed its accounting policy as a result of amendment of the rules of a specific central clearing house and daily variation margin is now off-balanced. Nomura has restated previously report amounts of Trading assets decreased by 4.9 billion yen, Receivables from other than customers decreased by 5.5 billion yen and Trading liabilities decreased by 10.4 billion yen respectively to 18 conform to the current presentation.    2.    Including securities pledged as collateral.


Table of Contents

LOGO

 

Value at risk ï® Definition ï® From April 1, 2018, to December 31, 2018 (billions of yen)—99% confidence level—Maximum: 10.6—1-day time horizon for outstanding portfolio—Minimum:    3.1—Inter-product price fluctuations considered—Average:    4.6 (billions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/19 Mar Mar Dec Mar Jun Sep Dec Equity 0.7 1.2 1.2 1.2 2.2 2.1 1.1 Interest rate 2.7 3.1 2.7 3.1 2.9 2.9 3.5 Foreign exchange 1.7 3.2 2.6 3.2 2.3 2.2 1.7 Sub-total 5.0 7.5 6.5 7.5 7.4 7.2 6.3 Diversification benefit -1.7 -1.1 -1.3 -1.1 -2.9 -2.7 -1.4 VaR 3.3 6.4 5.2 6.4 4.5 4.5 4.9 19


Table of Contents

LOGO

 

Consolidated financial highlights Full year Quarter (billions of yen) (billions of yen) 9.3% 300 8.7% 10% 100 7.9% 10% 7.9% 8% Net income (loss) 8% 6% attributable to 50 88.0 4% Nomura Holdings, 200 22.7 Inc. (‘‘NHI’’) 6% 0.8% 2% 239.6 shareholders 5.2 0 0% 4% -11.2 ROE(%) 100 219.3 -50 2% 0 0% -100 -95.3 FY2017/18 FY2018/19 FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q Net revenue 1,403.2 1,497.0 406.\6 378.0 272.0 282.9 260.6 Income (loss) before income taxes 322.8 328.2 120.8 46.9 13.6 0.5 -76.2 Net income (loss) attributable to Nomura 239.6 219.3 88.0 22.7 5.2 -11.2 -95.3 Holdings, Inc. (“NHI”) shareholders Total NHI shareholders’ equity 2,789.9 2,749.3 2,841.7 2,749.3 2,797.2 2,800.8 2,662.9 ROE (%)1 8.7% 7.9% 9.3% 7.9% 0.8% —Basic-Net income (loss) attributable to NHI 67.29 63.13 25.55 6.68 1.54 -3.31 -28.52 shareholders per share (yen) Diluted-Net income (loss) attributable to NHI 65.65 61.88 25.12 6.56 1.50 -3.32 -28.52 shareholders per share (yen) Total NHI shareholders’ equity per share (yen) 790.70 810.31 835.72 810.31 822.88 828.02 805.07 20 1. Quarterly ROE is calculated using annualized year-to-date net income.


Table of Contents

LOGO

 

Consolidated income

Full year Quarter

(billions of yen) FY2017/18 FY2018/19 FY2016/17 FY2017/18

3Q 4Q 1Q 2Q 3Q

Revenue

Commissions1 327.1 373.3 101.7 95.4 79.5 74.8 72.7 Fees from investment banking 92.6 101.7 29.3 22.6 24.0 19.1 33.1 Asset management and portfolio service fees 216.5 245.6 63.8 62.3 63.0 62.7 60.6 Net gain on trading 475.6 442.9 87.7 146.3 71.9 75.8 96.9 Gain (loss) on private equity investments 1.4 -0.9 -2.4 1.5 0.6 0.3 0.5 Interest and dividends 441.0 585.7 161.4 148.2 169.6 188.7 214.5 Gain (loss) on investments in equity securities 7.7 2.7 4.5 -5.0 2.1 -1.1 -9.9 Other 153.6 221.2 84.6 39.9 20.5 28.1 -11.1 Total revenue 1,715.5 1,972.2 530.6 511.2 431.0 448.4 457.4 Interest expense 312.3 475.2 124.0 133.2 159.0 165.5 196.8 Net revenue 1,403.2 1,497.0 406.6 378.0 272.0 282.9 260.6 Non-interest expenses1 1,080.4 1,168.8 285.9 331.1 258.4 282.5 336.8 Income (loss) before income taxes 322.8 328.2 120.8 46.9 13.6 0.5 -76.2 Net income (loss) attributable to NHI shareholders 239.6 219.3 88.0 22.7 5.2 -11.2 -95.3

1. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and revenues and expenses related to certain Execution Services transactions are now shown 21 as net value rather than gross value. As a result, revenues and expenses for FY2018/19 1Q, 2Q and 3Q declined by approx. 4.6 billion yen, approx. 4.1 billion yen and approx. 4.7 billion yen respectively.


Table of Contents

LOGO

 

Main revenue items

Full year Quarter

FY2017/18 FY2018/19

(billions of yen) FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q Stock brokerage commissions1 210.0 243.8 68.4 63.8 50.2 47.4 50.5 Other brokerage commissions 15.1 17.0 4.3 6.0 4.1 3.4 4.3

Commissions Commissions for distribution of investment trusts 75.1 85.7 22.1 19.5 17.8 15.6 11.5

Other 26.9 26.9 6.9 6.2 7.3 8.4 6.4 Total 327.1 373.3 101.7 95.4 79.5 74.8 72.7

Equity underwriting and distribution 22.4 23.2 5.2 4.1 5.8 5.9 14.7 Bond underwriting and distribution 16.9 16.3 4.9 3.4 6.2 4.6 6.6

Fees from

M&A / Financial advisory fees 34.4 39.3 13.7 9.1 7.3 5.6 7.3

investment banking

Other 18.9 22.9 5.5 6.0 4.7 3.0 4.5 Total 92.6 101.7 29.3 22.6 24.0 19.1 33.1

Asset management Asset management fees 148.7 170.4 43.9 44.1 43.6 43.4 41.5 and portfolio service Administration fees 50.2 57.9 15.5 14.1 15.2 15.3 15.2 fees Custodial fees 17.6 17.3 4.3 4.2 4.1 4.0 3.9 Total 216.5 245.6 63.8 62.3 63.0 62.7 60.6

1. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and revenues and expenses related to certain Execution Services transactions are now shown 22 as net value rather than gross value. As a result, revenues and expenses for FY2018/19 1Q, 2Q and 3Q declined by approx. 4.6 billion yen, approx. 4.1 billion yen and approx. 4.7 billion yen respectively.


Table of Contents

LOGO

 

Consolidated results: Income (loss) before income taxes by segment and region

Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter

(billions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/19

3Q 4Q 1Q 2Q 3Q

Retail 74.8 103.1 31.3 21.4 19.9 12.2 14.0    Asset Management1 42.3 66.2 20.8 11.3 10.3 8.9 0.6    Wholesale 161.4 100.6 14.0 44.2 -7.4 4.9 -95.9 Three business segments total 278.6 269.9 66.2 76.9 22.8 26.0 -81.3 Other1 37.6 56.4 50.4 -25.0 -11.2 -24.5 15.1 Segments total 316.2 326.3 116.6 51.9 11.6 1.6 -66.2 Unrealized gain (loss) on investments in equity 6.6 1.9 4.2 -5.0 2.0 -1.1 -10.0 securities held for operating purposes Income (loss) before income taxes 322.8 328.2 120.8 46.9 13.6 0.5 -76.2

Geographic information: Income (loss) before income taxes2

Full year Quarter

FY2017/18 FY2018/19 (billions of yen) FY2016/17 FY2017/18

3Q 4Q 1Q 2Q 3Q

Americas 50.0 -8.8 10.8 -26.0 -1.7 -21.6 -87.1 Europe 14.4 -14.7 -16.5 0.9 -5.2 -11.6 -14.5 Asia and Oceania 23.7 22.8 7.4 6.4 -0.8 1.0 -3.9 Subtotal 88.1 -0.7 1.7 -18.7 -7.7 -32.2 -105.5 Japan 234.7 328.8 119.1 65.6 21.3 32.6 29.4 Income (loss) before income taxes 322.8 328.2 120.8 46.9 13.6 0.5 -76.2

1. From FY2018/19 1Q, Nomura Funds Research and Technologies has been moved from Asset Management to segment Other.                23

2. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended December 31, 2018). Nomura’s revenues and expenses are allocated based on the country of domicile of the legal entity providing the service. This information is not used for business management purposes.


Table of Contents

LOGO

 

Segment “Other”

Income (loss) before income taxes

Full year Quarter

(billions of yen)

80.0

60.0 56.4

50.4 37.6 40.0

20.0 15.1

0.0

-20.0 -11.2

-25.0 -24.5

-40.0

1 2 1 2 3 4 5

FY2017/18 FY2018/19

FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic

-7.3 -6.5 -8.0 1.7 -13.8 -16.0 25.1 hedging transactions Realized gain (loss) on investments in equity

1.1 0.8 0.4 0.0 0.0 0.0 0.1 securities held for operating purposes Equity in earnings of affiliates 32.3 34.2 7.8 11.0 6.6 8.5 1.4 Corporate items -6.4 -41.9 -3.4 -40.2 -2.5 -23.7 0.6 Others 17.9 69.7 53.7 2.6 -1.6 6.7 -12.2 Income (loss) before income taxes 37.6 56.4 50.4 -25.0 -11.2 -24.5 15.1

24


Table of Contents

LOGO

 

Retail related data (1)

Full year Quarter

(billions of yen) FY2017/18 FY2018/19

FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q QoQ YoY Commissions 171.8 192.7 54.1 47.5 40.8 36.8 34.1 -7.3% -37.0% Of which, stock brokerage commission 62.8 82.2 25.4 21.7 16.8 15.3 15.8 3.6% -37.7% Of which, commissions for distribution of investment trusts 82.3 87.1 22.6 19.5 18.5 15.6 11.7 -25.5% -48.4% Sales credit 85.3 91.5 23.8 17.5 18.9 15.5 10.9 -29.2% -54.0% Fees from investment banking and other 27.3 26.0 6.6 6.1 6.0 7.0 14.3 103.7% 117.4% Investment trust administration fees and other 81.8 93.6 24.2 24.0 24.4 24.0 23.6 -1.5% -2.4% Net interest revenue 8.3 9.2 2.6 3.0 2.8 2.4 3.8 55.6% 46.2% Net revenue 374.4 412.9 111.3 98.2 92.8 85.7 86.8 1.3% -22.0% Non-interest expenses 299.6 309.8 80.0 76.7 72.9 73.5 72.7 -1.0% -9.1% Income before income taxes 74.8 103.1 31.3 21.4 19.9 12.2 14.0 15.0% -55.1%

Domestic distribution volume of investment trusts1 3,376.3 3,610.5 905.3 875.3 747.6 648.8 527.5 -18.7% -41.7% Bond investment trusts 0.2 0.0 0.0 0.0 0.0 0.0 0.0 —Stock investment trusts 2,955.3 3,198.6 820.6 726.8 669.1 583.6 451.7 -22.6% -45.0% Foreign investment trusts 420.8 411.9 84.7 148.5 78.5 65.2 75.8 16.2% -10.5%

Other

Accumulated value of annuity insurance policies 2,941.5 3,094.5 3,057.6 3,094.5 3,139.0 3,178.2 3,225.1 1.5% 5.5% Sales of JGBs for individual investors (transaction base) 1,129.9 628.1 194.6 224.1 312.2 206.5 237.6 15.0% 22.1% Retail foreign currency bond sales 1,131.2 1,249.9 253.7 318.4 234.6 211.0 193.1 -8.5% -23.9%

25

1. Excluding former Net & Call. Former Net & Call included from FY2017/18 4Q.


Table of Contents

LOGO

 

Retail related data (2)

Retail client assets

(trillions of yen)

140

Other 122.8

117.7 118.6 122.8

117.7

120 110.0

Foreign investment 107.7 trusts

100

Bond investment trusts 80 Stock investment trusts 60 Domestic bonds

40

Foreign currency 20 bonds Equities

0

FY2016/17 FY2017/18 FY2017/18 FY2018/19

Mar Mar Dec Mar Jun Sep Dec Equities 66.3 75.7 79.2 75.7 76.4 79.8 68.4 Foreign currency bonds 6.0 6.1 6.2 6.1 6.1 6.1 6.2 Domestic bonds1 11.7 11.9 11.8 11.9 11.9 12.1 12.3 Stock investment trusts 8.8 9.1 9.5 9.1 9.1 9.2 8.3 Bond investment trusts 7.3 7.1 7.9 7.1 7.2 7.1 6.8 Foreign investment trusts 1.3 1.2 1.3 1.2 1.2 1.2 1.1 Other2 6.4 6.7 6.9 6.7 6.7 7.2 6.9 Total 107.7 117.7 122.8 117.7 118.6 122.8 110.0

26

1. Including CBs and warrants.    2.                Including annuity insurance.


Table of Contents

LOGO

 

Retail related data (3)

Net inflows of cash and securities1

Full year Quarter

(billions of yen) (billions of yen)

2,000 2,000

1,762

1,500 1,500

1,000 1,000

682

500 500

0 0

-14 -37 -196 -306 -500 -403 -500

FY2017/18 FY2018/19 FY2016/17 FY2017/18

3Q 4Q 1Q 2Q 3Q

1. Cash and securities inflows minus outflows, excluding regional financial institutions. 27


Table of Contents

LOGO

 

Retail related data (4)

Number of accounts

(thousands) FY2016/17 FY2017/18 FY2017/18 FY2018/19

Mar Mar Dec Mar Jun Sep Dec

Accounts with balance 5,363 5,318 5,326 5,318 5,318 5,318 5,354

Equity holding accounts 2,836 2,822 2,800 2,822 2,823 2,829 2,905

Online service accounts1, 2 4,456 4,387 4,342 4,387 4,427 4,470 4,526

New Individual accounts / IT share3

Full year Quarter

FY2017/18 FY2018/19

(thousands) FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q New individual accounts 231 231 60 66 58 65 73

IT share3

No. of orders 57% 67% 60% 78% 78% 78% 77% Transaction value 34% 43% 38% 56% 53% 54% 53%

1. Number of accounts for previous years have been reclassified in line with definition introduced in FY2017/18 1Q.

2. Net & Call and Home Trade were merged in January 2018 to form Online Services which started providing new services. 28

3. Ratio of cash stocks traded via former Home trade. From FY2017/18 4Q, ratio of cash stocks traded via Online Services.


Table of Contents

LOGO

 

Asset Management related data (1)

Full year Quarter

FY2017/18 FY2018/19

FY2016/17 FY2017/18 QoQ YoY

(billions of yen) 3Q 4Q 1Q 2Q 3Q

Net revenue1 99.4 127.3 36.5 27.3 26.1 24.7 16.2 -34.5% -55.7% Non-interest expenses1 57.1 61.2 15.7 16.0 15.8 15.8 15.6 -1.0% -0.3% Income before income taxes1 42.3 66.2 20.8 11.3 10.3 8.9 0.6 -93.7% -97.3%

Assets under management by company

(trillions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/19

Mar Mar Dec Mar Jun Sep Dec Nomura Asset Management 47.4 52.4 53.3 52.4 53.1 55.1 50.2 Nomura Funds Research and Technologies 2.8 2.8 2.9 2.8 — -Nomura Corporate Research and Asset Management 2.4 2.7 2.8 2.7 2.8 2.9 2.6 Assets under management (gross) 2 52.6 57.8 59.1 57.8 55.9 58.0 52.9    Group company overlap 8.3 7.8 8.3 7.8 5.1 5.2 4.5 Assets under management (net) 3 44.4 50.0 50.7 50.0 50.8 52.8 48.3

1. Figures from FY2018/19 1Q onwards do not include Nomura Fund Research and Technologies.

2. Total assets under management for Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management, and Wealth Square. Figures from June 2018 do not include

Nomura Fund Research and Technologies.    29

3. Net after deducting duplications from assets under management (gross).


Table of Contents

LOGO

 

Asset Management related data (2)

Asset inflows/outflows by business1

Full year Quarter

FY2017/18 FY2018/19

(billions of yen) FY2016/17 FY2017/18 3Q 4Q 1Q 2Q 3Q Investment trusts business 1,590 3,131 773 1,156 263 280 1,141

of which ETFs 1,934 3,022 193 1,740 147 510 1,391 Investment advisory business 584 203 -55 248 109 156 -354 Total net asset inflow 2,174 3,334 718 1,404 372 436 787

Domestic public investment trust market and Nomura Asset Management market share2

(trillions of yen) FY2016/17 FY2017/18 FY2017/18 FY2018/19

Mar Mar Dec Mar Jun Sep Dec Domestic public stock investment trusts Market 85.9 96.9 97.4 96.9 99.1 103.8 93.6

Nomura Asset Management share (%) 23% 25% 25% 25% 25% 25% 26%

Domestic public bond investment trusts

Market 12.8 12.3 13.8 12.3 12.6 12.5 11.6

Nomura Asset Management share (%) 44% 44% 44% 44% 44% 44% 45%

ETF

Market 23.3 32.5 30.8 32.5 34.2 37.4 33.6

Nomura Asset Management share (%) 45% 46% 45% 46% 45% 45% 45% 30

1. Based on assets under management (net).    

2. Source Investment Trusts Association, Japan.


Table of Contents

LOGO

 

Wholesale related data

Full year Quarter

(billions of yen) FY2017/18 FY2018/19

FY2016/17 FY2017/18 QoQ YoY

3Q 4Q 1Q 2Q 3Q

Net revenue 739.3 715.3 165.6 211.4 137.3 147.7 128.2 -13.2% -22.6% Non-interest expenses 577.8 614.7 151.6 167.2 144.7 142.7 224.1 57.0% 47.8% Income before income taxes 161.4 100.6 14.0 44.2 -7.4 4.9 -95.9

Breakdown of Wholesale revenues1

Full year Quarter

(billions of yen) FY2017/18 FY2018/19

FY2016/17 FY2017/18 QoQ YoY

3Q 4Q 1Q 2Q 3Q

Fixed Income 401.7 341.6 76.7 95.7 57.7 69.6 37.5 -46.0% -51.0% Equities 232.3 261.6 60.9 84.4 54.5 54.2 65.9 21.6% 8.3% Global Markets 634.1 603.2 137.6 180.0 112.2 123.8 103.5 -16.4% -24.8% Investment Banking 105.2 112.1 28.1 31.4 25.1 23.9 24.7 3.6% -11.9% Net revenue 739.3 715.3 165.6 211.4 137.3 147.7 128.2 -13.2% -22.6%

31

1. FY2016/17 and FY2017/18 figures for Fixed Income, Equities and Investment Banking have been restated based on a reorganization in April 2018.


Table of Contents

LOGO

 

Number of employees

FY2016/17 FY2017/18 FY2017/18 FY2018/19

Mar Mar Dec Mar Jun Sep Dec

Japan 16,227 15,819 16,583 15,819 16,474 16,296 16,137

Europe 3,026 3,057 3,054 3,057 3,030 3,020 2,963 Americas 2,314 2,362 2,349 2,362 2,364 2,390 2,384 Asia and Oceania1 6,619 6,810 6,786 6,810 6,873 6,843 6,796 Total 28,186 28,048 28,772 28,048 28,741 28,549 28,280

32

1. Includes Powai office in India.


Table of Contents

LOGO

 

Disclaimer

ï® This document is produced by Nomura Holdings, Inc. (“Nomura”).

ï® 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 sell, sales, solicitations to buy, or purchases of any securities issued by Nomura or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market practices of the jurisdictions in which such offers or sales may be made.

ï® The information and opinions contained in this document have been obtained from sources believed to be reliable, but no representations or warranty, express or implied, are made that such information is accurate or complete and no responsibility or liability can be accepted by Nomura for errors or omissions or for any losses arising from the use of this information.

ï® All rights regarding this document are reserved by Nomura unless otherwise indicated. No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Nomura.

ï® This document contains statements that may constitute, and from time to time our management may make “forward-looking statements” within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risk factors, as well as those more fully discussed under Nomura’s most recent Annual Report on Form 20-F and other reports filed with the U.S. Securities and Exchange Commission (“SEC”) that are available on Nomura’s website (http://www.nomura.com) and on the SEC‘s website (http://www.sec.gov); Important risk factors that could cause actual results to differ from those in specific forward-looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, and the number and timing of transactions.

ï® Forward-looking statements speak only as of the date they are made, and Nomura undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

ï® The consolidated financial information in this document is unaudited.


Table of Contents

LOGO

 

Nomura Holdings, Inc.

www.nomura.com