6-K 1 d741114d6k.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 August 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):         

 

 

 


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Information furnished on this form:

EXHIBIT

Exhibit Number

 

1.

Consolidated Results of Operations (US GAAP), First quarter, year ending March 2020


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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: August 7, 2019   By:   

/s/ Go Sugiyama

     Go Sugiyama
     Senior Managing Director


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NOMURA Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2020 (US GAAP)    Nomura Holdings, Inc. July 2019    © Nomura    

 


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Outline NOMURA Presentation Executive summary (p. 2) Overview of results (p. 3) Business segment results (p. 4) Retail (p. 5-6) Asset Management (p. 7-8) Wholesale (p. 9-11) Non-interest expenses (p. 12) Robust financial position (p. 13) Funding and liquidity (p. 14) Financial Supplement    Consolidated balance sheet (p. 16) Value at risk (p. 17) Consolidated financial highlights (p. 18) Consolidated income (p. 19) Main revenue items (p. 20)    Consolidated results: Income (loss) before income taxes by segment and region (p. 21)    Segment “Other” (p. 22)    Retail related data (p. 23-26)    Asset Management related data (p. 27-28) Wholesale related data (p. 29) Number of employees (p. 30)


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Executive summary    Nomura FY2019/20 1Q highlights    Income before income taxes: Y74.8bn; Net income1: Y55.8bn; ROE2: 8.4%; EPS3: Y16.48 All business divisions reported higher net revenue and income before income taxes QoQ All three international regions returned to pretax profit (three region total: Y30.4bn) as we reviewed our business portfolio and focused on our areas of competitive strength Three segment income before income taxes: Y46.3bn Retail Stronger sales of investment trusts and bonds driven by improved investor sentiment and efforts of our Partners 4 in branches Assets under management in SMAs5 continued to grow as we introduced wrap trusts aimed at meeting estate planning needs Asset Management Twelfth straight quarter of inflows offset a decline due to market factors to lift assets under management Gain/loss related to American Century Investments contributed to higher net revenue and income before income taxes QoQ Wholesale Global markets improved QoQ as Fixed Income Americas booked significantly stronger revenues, and Japan improved and Americas Equities remained resilient Wholesale costs declined QoQ as one-off expenses6 booked last quarter were no longer present and cost allocations from Corporate declined    1. Net income (loss) attributable to Nomura Holdings shareholders. 2. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 3. Diluted net income attributable to Nomura Holdings shareholders per share. 4.    We refer to our sales representative as “partner” 5.    Separately managed account, a discretionary investment service 6. Severance and other expenses related to revision of business portfolio (Y8.4bn). Income (loss) before income taxes and net income (loss)1    Firm-wide (billions of yen) Income (loss) before income taxes Net income (loss) 74.8 55.8 24.4 13.6 5.2 0.5 0.8 -11.2 -76.2 -95.3 FY2018/19 FY19/20 1Q 2Q 3Q 4Q 1Q Three segment income (loss) before income taxes 46.3 22.8 26.0 4.7 Wholesale -81.3 Asset Management Retail FY2018/19 FY19/20 1Q 2Q 3Q 4Q 1Q 2


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Overview of results NOMURA Highlights (billions of yen, except EPS and ROE)    Net revenue Non-interest expenses Income before income taxes Net income1 EPS2 ROE3 FY2019/20 FY2018/19 FY2018/19 QoQ YoY 1Q 4Q 1Q 332.0 301.3 +10% 272.0 +22% 257.2 276.9 -7% 258.4 -0.4% 74.8 24.4 3.1x 13.6 5.5x 55.8 0.8 66.2x 5.2 10.7x Y16.48 Y0.23 71.7x Y1.50 11.0x 8.4% 0.1% 0.8%    1. Net income attributable to Nomura Holdings shareholders. 2. Diluted net income attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period 3


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Business segment results    NOMURA Net revenue and income (loss) before income taxes (billions of yen) FY2019/20 1Q FY2018/19 4Q QoQ FY2018/19 1Q YoY Net revenue Retail 80.6 74.2 +9% 92.8 -13% Asset Management 34.5 30.9 +12% 26.1 +32% Wholesale 159.5 142.2 +12% 137.3 +16% Subtotal 274.6 247.3 +11% 256.2 +7% Other* 60.3 52.1 +16% 13.7 4.4x Unrealized gain (loss) on investments in -2.9 1.8—2.0 -equity securities held for operating purposes Net revenue 332.0 301.3 +10% 272.0 +22% Income (loss) Retail 8.1 3.3 +146% 19.9 -59% before income Asset Management 18.1 14.4 +26% 10.3 +76% taxes Wholesale 20.0 -13.0—-7.4 -Subtotal 46.3 4.7 9.8x 22.8 +103% Other* 31.5 17.8 +76% -11.2 -Unrealized gain (loss) on investments in -2.9 1.8—2.0 -equity securities held for operating purposes Income before income taxes 74.8 24.4 3.1x 13.6 5.5x    Net gain related to economic hedging transactions (Y12.8bn) *Additional information on “Other” (1Q)    Gain on changes to own and counterparty credit spread relating to Derivatives (Y2.1bn)    4


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Retail NOMURA Net revenue and income before income taxes (billions of yen)    FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 92.8 85.7 86.8 74.2 80.6 +9% -13% Non-interest expenses 72.9 73.5 72.7 70.9 72.5 +2% -1% Income before income taxes 19.9 12.2 14.0 3.3 8.1 +146% -59%    Total sales4 (billions of yen) Stocks Bonds Investment trusts Discretionary investments, Insurance products 4,000 3,000 2,000 1,000 0 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q    Key points     Net revenue: Y80.6bn (+9% QoQ; -13% YoY) Income before income taxes: Y8.1bn (QoQ +146%; YoY -59%) Net revenue and income before income taxes both up QoQ -Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1 -Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration, but IT-related expenses declined Client franchiseJun / 1QMar / 4Q -Retail client assetsY113.1trnY114.7trn -Accounts with balance5.33m5.34m -NISA accounts opened (accumulated)21.71m1.70m -Net inflows of cash and securities3-Y120.6bn-Y392.8bn Total sales4 up 21% QoQ    Stocks: +2% QoQ – Stronger secondary sales of Japanese and international stocks – Decline in subscriptions for primary stocks5 (Y52.5bn; -31% QoQ) Investment trusts: +43% QoQ – Inflows into primary funds investing in global stocks Bonds: Y674.4bn; +42% QoQ – Domestic bonds saw solid sales of primary bonds and JGBs for individual investors, while foreign bond sales increased driven by US dollar denominated bonds Sales of discretionary investment and insurance increased 30% QoQ We refer to our sales representatives as “partner” 2. Includes Junior NISA. 3. Cash and securities inflows minus outflows, excluding regional financial institutions Retail channels only. 5. Retail channels, Net & Call, and Hotto Direct.    5


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Retail: Continued to provide services matched to client needs    NOMURA Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs) 100.0 31% 31% 31% 31% 31% 30% 80.0 20% 60.0 90.4 90.9 89.9 88.0 90.4 40.0 10% 20.0 0% FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Investment trust and discretionary investment AuM (trillions of yen) Stock investment trusts + Foreign investment trusts Discretionary investment 15.0 13.0 13.2 12.9 12.9 12.1 2.7 2.8 2.8 2.8 10.0 2.7 5.0 10.3 10.4 9.3 10.1 10.1 0.0 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q    Annualized recurring revenue of Y90.4bn Investment trusts: Subscriptions grew, but cancellations and outflows continued Discretionary investments: Fund Wrap saw net declines, but SMA3 AuM trended up as we introduced wrap trusts to meet estate planning needs Jun / 1Q Mar / 4Q Recurring revenue Y22.5bn Y21.7bn Investment trust net inflows1 -Y29.7bn -Y58.2bn Discretionary investment net inflows1 -Y40.5bn -Y10.8bn Sales of insurance products2 Y54.7bn Y46.2bn Inflows of cash and securities2 Y1,054.9bn Y944.1bn    SMA3 AuM and number of contracts (billions of yen) (number of contracts) SMA AuM number of SMA contracts 800.0 8,000 6,232 7,061 5,913 600.0 6,000 5,017 400.0 4,000 3,951 688.9 739.7 608.7 638.5 200.0 535.7 2,000 0.0 FY2018/19 FY2019/20 0 Jun Sep Dec Mar Jun    1. Retail channels and Japan Wealth Management Group.                2. Retail channels only. 3. Separately managed account, a discretionary investment service    6


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Asset Management NOMURA Net revenue and income before income taxes1 (billions of yen) FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Revenue 26.3 26.1 24.5 26.0 25.8 -1% -2%    (excl. ACI-related)    ACI-related gain/loss -0.2 -1.5 -8.3 4.9 8.7 +77%—Net revenue 26.1 24.7 16.2 30.9 34.5 +12% +32% Non-interest expenses 15.8 15.8 15.6 16.5 16.4 -1% +3% Income before income taxes 10.3 8.9 0.6 14.4 18.1 +26% +76% Assets under management (net)2 (trillions of yen) Investment trust business Investment advisory business    50.8 52.8 51.4 51.6 48.3 16.2 16.8 15.8 15.6 15.1 34.7 36.0 33.3 35.5 36.0 FY2018/19 FY2019/20 Jun Sep Dec Mar Jun    Key points    Net revenue: Y34.5bn (+12% QoQ; +32% YoY)    Income before income taxes: Y18.1bn (+26% QoQ; +76% YoY) Net revenue and income before income taxes both up QoQ and YoY - Asset management fees remained solid; Twelfth straight quarter of inflows and AuM at second highest level ever­ Contribution from gain/loss related to American Century Investments (ACI) Investment trust business    Ongoing inflows into ETFs lifted AuM to a record high (end June: Y17.2trn; Market share: 45%) Inflows continued into Nomura ACI Advanced Medical Impact Investment and defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock funds Investment advisory business and international business    In Japan, inflows from public pension fund into alternative investment fund, and outflows from private pension fund by shift to defined contribution pension plans Internationally, we won a new mandate in EMEA, but reported outflows in AEJ and the Middle East due to redemptions by some public institutions    This table presents a reconciliation of net revenues (other than ACI-related gain/loss) and ACI-related gain/loss, which are non-GAAP measures prepared on a management accounting basis, to net revenue for the Asset Management segment. ACI-related gain/loss includes fair value adjustments of our investment in, funding cost equivalent for our investment in and dividends from ACI. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Corporate Research and Asset Management, and Wealth Square.    7


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Asset Management: Steady growth in defined contribution pension funds    NOMURA Flow of funds1 (billions of yen) Investment trust business Investment advisory business 1,500 787 1,000 612 508 372 436 1,141 109 500 156 109 672 503 263 280 0 -354 -164 -500 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q    Flow of funds in investment trust business1     (billions of yen) MRFs, etc. Investment trust businessETFs 2,000(excl. ETFs)Other investment trusts (excl. ETFs) 1,5001,391 1,000 510483642 500147 01162031 -250 -500-230 -1,000 FY2018/19FY2019/20 1Q2Q3Q4Q1Q Nomura Asset Management public investment trust market share2 28.0% 27.8% 27.7% 27.6% 27.3% 27.3% 27.0% 26.0% FY2018/19 FY2019/20 Jun Sep Dec Mar Jun Defined contribution pension funds (billions of yen) AuM increased by Y378.5bn (+61%) in    Steady market growth just over four years driven by shift from defined benefit pension 969.9 994.2 plans to defined 860.7 contribution pension 734.1 plans 615.7 636.7    Product proposals that take into account client risk appetite and support asset formation over the long term contributed to Mar.15 Mar.16 Mar.17 Mar.18 Mar.19 Jun.19 AuM growth    1. Based on assets under management (net). 2.    Source: The Investment Trusts Association, Japan.    8


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Wholesale    NOMURA Net revenue and income (loss) before income taxes1 (billions of yen) FY2018/19 FY19/20 QoQ YoY 1Q 2Q 3Q 4Q 1Q Global Markets 112.2 123.8 103.5 113.6 135.7 +20% +21% Investment Banking 25.1 23.9 24.7 28.6 23.7 -17% -5% Net revenue 137.3 147.7 128.2 142.2 159.5 +12% +16% Non-interest expenses 144.7 142.7 224.1 155.3 139.5 -10% -4% Income (loss) before income -7.4 4.9 -95.9 -13.0 20.0 —taxes Net revenue by region (billions of yen) 200.0 150.0 42.9 59.3 42.3 Americas 49.9 41.3 100.0 24.5 EMEA 31.6 29.4 29.2 20.3 27.3 10.6 25.0 24.0 AEJ 50.0 16.7 59.9 49.0 46.8 41.5 43.3 Japan 0.0 FY2018/19 FY19/20 1Q 2Q 3Q 4Q 1Q    Key points Net revenue: Y159.5bn (+12% QoQ; +16% YoY) Income before income taxes: Y20bn Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoY—Fixed Income Americas booked significantly stronger revenues, and Japan improved and Americas Equities remained resilient—Investment Banking revenues declined from last quarter when contributions from several completed high-profile M&A deals were booked Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined Net revenue by region (QoQ; YoY) Americas: Y59.3bn (+40%; +19%)—Strongest quarterly revenues in past five quarters; Fixed Income revenues strong driven by Rates; Equities saw rebound in Derivatives revenues Japan: Y46.8bn (+8%; +13%)—Higher revenues QoQ as Credit drove stronger revenues in Fixed Income EMEA: Y29.4bn (-7%; +1%)—Fixed Income reported slight decline from strong previous quarter, but performance remained solid, particularly in Rates AEJ: Y24bn (-4%; +44%)—Fixed Income reported decline from strong previous quarter, but FX & EM and Credit remained solid    This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP. Severance and other expenses related to revision of business portfolio (Y8.4bn).    9


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Wholesale: Global Markets NOMURA Net revenue (billions of yen) Equities Fixed Income 135.7 123.8 112.2 113.6 103.5 QoQ 53.3 +20% 54.2 45.6 54.5 YoY                65.9 +21% 82.5 69.6 68.0 57.7 37.5 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Key points    Net revenue: Y135.7bn (+20% QoQ; +21% YoY) ­ Fixed Income Americas booked significantly stronger revenues, and Japan improved. Equities revenues also increased driven by improved performance in Americas Derivatives Fixed Income    Net revenue: Y82.5bn (+21% QoQ; +43% YoY) Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business Revenues from Credit and other spread products improved Equities Net revenue: Y53.3bn (+17% QoQ; -2% YoY) Derivatives had a strong quarter on an uptick in client activity FY2019/20 1Q net revenue by region YoY QoQ Global Markets Global Markets Fixed Equities Income Americas EMEA AEJ Japan 0% ~ ±5% ±5% ~ ±15% ±15% ~    Americas: Fixed Income revenues were at their highest in 10 quarters; Derivatives had a good quarter    EMEA: Revenues declined slightly QoQ, but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility    AEJ: Revenues declined from strong previous quarter, but FX & EM and Credit remained robust and Derivatives revenues improved    Japan: Cash Equities revenues declined due to slower client flows; Fixed Income saw an increase in demand for Credit Products    10


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Wholesale: Investment Banking    NOMURA Net revenue1 (billions of yen) 28.6 25.1 24.7 23.9 23.7 QoQ -17% YoY -5% FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q Key points    Net revenue: Y23.7bn (-17% QoQ; -5% YoY)—Japan and international revenues both down from last quarter which included several completed high-profile M&A deals —Lower fee pools YoY led to decline in revenues, but M&A and ALF revenues increased  Contributions from AEJ cross-border M&A deals and multi-product transactions Japan—Traditional financing business roughly unchanged QoQ—M&A revenues remained solid but declined from strong prior quarter International—Revenue contributions mainly in Americas from ALF transactions involving financial sponsors    Cross-border deals Won multiple cross-border M&A / high-profile mandates Nippon Paint Holdgins’ Tokai Carbon’s acquisition of acquisition of DuluxGroup COBEX (Germany) (Australia) (€822m) ($2.9bn) Hillhouse Capital Management’s Takeda Pharmaceutical’s sale of (China) acquisition of Loch Lomond TachoSil to Johnson & Johnson M&A Distillery (UK) (US) (Undisclosed) ($400m) Misawa Homes becoming a wholly owned SoftBank’s acquisition of stake in subsidiary of Toyota Home through share Yahoo Japan and Yahoo Japan’s exchange / Integrate and establish joint share buyback venture related to town development business between Toyota Motor and Panasonic (Y456.5bn / Y526.5bn) (Y22.1bn / Undisclosed) Sansan Softbank Group IPO Retail Bond (Y38.9bn) (Y500bn) Financing on Hellman & Financing on Apax Partners’ (US) Friedman’s (US) acquisition of acquisition of Trade Me (New Financing Ultimate Software Group(US) Zealand) ($3.5bn) ($864m) Chewy(US) Republic of Italy IPO Benchmark Bond ($1.0bn) (€6.0bn)    11


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Non-interest expenses    NOMURA Full year Quarter (billions of yen) (billions of yen) 1,500 400 336.8 Other 1,168.8 1,154.5 282.5 300 258.4 276.9 257.2 Business development 1,000 expenses Occupancy and related 200 depreciation Information processing and communications 500 Commissions and floor 100 brokerage¹ Compensation and benefits 0 0 FY2017/ FY2018/ FY2018/19 FY 2019/20 QoQ 18 19 1Q 2Q 3Q 4Q 1Q Compensation and benefits 530.6 497.1 127.7 125.8 118.9 124.6 125.1 0.4% Commissions and f loor brokerage¹ 99.9 82.6 20.9 19.6 23.8 18.3 24.6 34.1% Information processing and communications 184.8 166.9 41.0 40.5 41.8 43.6 41.8 -4.3% Occupancy and related depreciation 67.9 64.9 16.4 16.5 15.9 16.2 19.1 17.7% Business dev elopment expenses 36.8 36.9 8.9 9.3 9.1 9.6 7.8 -18.1% Other 248.9 306.0 43.5 70.8 127.3 64.5 38.8 -39.8% Total 1,168.8 1,154.5 258.4 282.5 336.8 276.9 257.2 -7.1%    Key points    Non-interest expenses: Y257.2bn (-7% QoQ) – Compensation and benefits                (+0.4% QoQ) Higher bonus provisions due to pay for performance One-off expenses related to revision of business portfolio booked last quarter (Y10.3bn) no longer present – Occupancy and related depreciation (+18% QoQ) One-off expenses (Y2.6bn) related to branch office integration in Japan – Other (-40% QoQ)  Lower legal expenses related to legacy transactions Decline in compensation paid to law firms and other professionals    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 rather than gross value.    12


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Robust financial position NOMURA Balance sheet related indicators and capital ratios Mar 2019 Jun 2019    Total assets Y41.0trn Y42.5trn    Shareholders’ equity Y2.6trn Y2.7trn    Gross leverage 15.6x 16.0x Net leverage1 9.0x 10.0x Level 3 assets2 Y0.6trn Y0.6trn (net) Liquidity portfolio Y4.9trn Y4.8trn (billions of yen) Mar 2019 Jun 20192 Basel 3 basis Tier 1 capital 2,606 2,642 Tier 2 capital 46 46 Total capital 2,652 2,688 RWA 14,252 14,652 Tier 1 capital ratio 18.2% 18.0% CET 1 capital ratio3 17.1% 16.8% Consolidated capital adequacy ratio 18.6% 18.3% Consolidated leverage ratio4 5.03% 5.06% HQLA5 Y4.3trn Y4.2trn LCR5 198.4% 188.4% RWA and CET 1 capital ratio3 (trillions of yen) RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) 20.0 17.9% 20.0% 17.0% 17.1% 16.8% 16.1% 15.0 15.0% 10.0 10.0% 5.0 5.0% 0.0 FY2018/19 FY2019/20 0.0% Jun Sep Dec Mar Jun Level 3 assets2 and Net Level 3 assets/Tier 1 capital (billions of yen) Level 3 Assets Net Level 3 Assets Net Level 3 Assets / Tier 1 Capital 800 30% 22% 24% 22% 600 20% 18% 20% 400 10% 200 0 0% FY2018/19 FY2019/20 Jun Sep Dec Mar Jun    Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. June 2019 is preliminary. 3. CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital divided by risk-weighted assets. Tier1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items). 5. Daily average for each quarter.    13


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Funding and liquidity    NOMURA Balance sheet Balance sheet structure (As of June 2019)    Highly liquid, healthy balance sheet Assets Liabilities and equity Unsecured funding2 structure    – 77% of assets are highly liquid    Just under 80% of unsecured funding trading and related assets that are is long-term debt marked-to-market and matched to    Diversified sources of funding trading and related liabilities Short-term debt through repos etc. (regionally and 15% Trading liabilities by currency) and related1 Long-term debt due – Other assets are funded by equity Trading assets within 1yr, 9% and related1 and long-term debt, ensuring International 27% structural stability Loans Bank lending Long-term market Liquidity portfolio2 Other liabilities debt, 75% Euro MTN/Yen, Retail Average retail bonds, etc. market Short-term borrowings maturity    6 years3 Japan    Liquidity portfolio: Cash and cash deposits Long-term 73% Euro – Y4.8trn, or 11% of total assets borrowings MTN/Other, Wholesale Other assets – Maintain a high quality liquidity Total equity wholesale market portfolio surplus without the need bonds, etc. for additional unsecured funding Breakdown of Long-term Funding of over a certain period short-term/long- debt by long-term term debt region debt    Trading assets and related: Reverse repo, securities, derivatives, etc. Trading liabilities and related: Repo, securities loaned, derivatives, etc. 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. Excludes long-term debt due within one year. Redemption schedule is individually estimated by considering the probability of redemption under certain stressed scenarios.    14


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Financial Supplement    NOMURA


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Consolidated balance sheet    NOMURA Consolidated balance sheet (billions of yen) Mar 31, Jun 30, Increase Mar 31, Jun 30, Increase 2019 2019 (Decrease) 2019 2019 (Decrease) Assets Liabilities Total cash and cash deposits 3,262 3,077 -184 Short-term borrowings 842 750 -91 Total payables and deposits 3,768 3,570 -198 Total loans and receivables 3,882 4,173 291 Total collateralized financing 16,684 18,342 1,657 Trading liabilities 8,220 8,181 -38 Total collateralized agreements 17,307 16,036 -1,271 Other liabilities 859 1,056 197 Long-term borrowings 7,916 7,907 -9 Total trading assets1 and private 14,386 16,851 2,465 Total liabilities 38,289 39,806 1,517 equity investments Total other assets 2,133 2,396 263 Equity Total NHI shareholders’ equity 2,631 2,663 32 Noncontrolling interest 50 64 14 Total assets 40,969 42,533 1,563 Total liabilities and equity 40,969 42,533 1,563    1. Including securities pledged as collateral.    16


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Value at risk    NOMURA Definition From April 1, 2019, to June 30, 2019 (billions of yen) 99% confidence level Maximum: 6.6 1-day time horizon for outstanding portfolio Minimum: 3.6 Inter-product price fluctuations considered Average: 4.9 (billions of yen) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Equity 1.2 1.1 2.2 2.1 1.1 1.1 1.2 Interest rate 3.1 2.8 2.9 2.9 3.5 2.8 3.1 Foreign exchange 3.2 1.9 2.3 2.2 1.7 1.9 3.2 Sub-total 7.5 5.8 7.4 7.2 6.3 5.8 7.5 Diversification benefit -1.1 -1.3 -2.9 -2.7 -1.4 -1.3 -1.5 VaR 6.4 4.5 4.5 4.5 4.9 4.5 6.0    17


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Consolidated financial highlights    NOMURA Full year (billions of yen) 300 7.9% 10% Net income (loss) 8% 200 attributable to Nomura 6% Holdings, Inc. (“NHI”) 100 4% shareholders 219.3 2% 0 0% ROE(%) -100 -100.4 -200 -300 FY2017/18 FY2018/19 Net revenue 1,497.0 1,116.8 Income (loss) before income taxes 328.2 -37.7 Net income (loss) attributable to Nomura 219.3 -100.4 Holdings, Inc. (“NHI”) shareholders Total NHI shareholders’ equity 2,749.3 2,631.1 ROE (%)1 7.9% -Basic-Net income (loss) attributable to NHI 63.13 -29.90 shareholders per share (yen) Diluted-Net income (loss) attributable to NHI 61.88 -29.92 shareholders per share (yen) Total NHI shareholders’ equity per share (yen) 810.31 794.69    Quarter (billions of yen) 100 10% 8.4% 8% 55.8 50 6% 4% 0.8% 2% 0 5.2 0.8 0% -11.2 -50 -100 -95.3 FY2018/19 FY2019/20 1Q 2Q 3Q 4Q 1Q 272.0 282.9 260.6 301.3 332.0 13.6 0.5 -76.2 24.4 74.8 5.2 -11.2 -95.3 0.8 55.8 2,797.2 2,800.8 2,662.9 2,631.1 2,662.7 0.8% ——8.4% 1.54 -3.31 -28.52 0.25 16.83 1.50 -3.32 -28.52 0.23 16.48 822.88 828.02 805.07 794.69 800.87    1. Quarterly ROE is calculated using annualized year-to-date net income.    18


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Consolidated income    NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Revenue Commissions1 373.3 293.1 79.5 74.8 72.7 66.1 68.2 Fees from investment banking 101.7 101.5 24.0 19.1 33.1 25.3 27.3 Asset management and portfolio service fees 245.6 245.5 63.0 62.7 60.6 59.2 60.0 Net gain on trading 442.9 343.0 71.9 75.8 96.9 98.4 112.8 Gain (loss) on private equity investments -0.9 1.0 0.6 0.3 0.5 -0.3 0.8 Interest and dividends 585.7 777.0 169.6 188.7 214.5 204.1 199.5 Gain (loss) on investments in equity securities 2.7 -7.0 2.1 -1.1 -9.9 1.9 -2.8 Other 221.2 81.1 20.5 28.1 -11.1 43.7 45.7 Total revenue 1,972.2 1,835.1 431.0 448.4 457.4 498.4 511.4 Interest expense 475.2 718.3 159.0 165.5 196.8 197.1 179.4 Net revenue 1,497.0 1,116.8 272.0 282.9 260.6 301.3 332.0 Non-interest expenses1 1,168.8 1,154.5 258.4 282.5 336.8 276.9 257.2 Income (loss) before income taxes 328.2 -37.7 13.6 0.5 -76.2 24.4 74.8 Net income (loss) attributable to NHI shareholders 219.3 -100.4 5.2 -11.2 -95.3 0.8 55.8 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 rather than gross value.    19


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Main revenue items    NOMURA Full year Quarter FY2018/19 FY2019/20 FY2017/18 FY2018/19 (billions of yen) 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions1 243.8 192.0 50.2 47.4 50.5 43.9 42.6 Other brokerage commissions 17.0 14.4 4.1 3.4 4.3 2.5 2.7 Commissions Commissions for distribution of investment trusts 85.7 56.6 17.8 15.6 11.5 11.7 16.4 Other 26.9 30.0 7.3 8.4 6.4 8.0 6.4 Total 373.3 293.1 79.5 74.8 72.7 66.1 68.2 Equity underwriting and distribution 23.2 30.0 5.8 5.9 14.7 3.6 3.1 Bond underwriting and distribution 16.3 22.7 6.2 4.6 6.6 5.3 6.8 Fees from M&A / Financial advisory fees 39.3 33.2 7.3 5.6 7.3 13.0 10.6 investment banking Other 22.9 15.5 4.7 3.0 4.5 3.4 6.9 Total 101.7 101.5 24.0 19.1 33.1 25.3 27.3 Asset management Asset management fees 170.4 168.7 43.6 43.4 41.5 40.2 40.3 Administration fees 57.9 61.0 15.2 15.3 15.2 15.2 15.7 and portfolio service Custodial fees 17.3 15.8 4.1 4.0 3.9 3.9 4.0 fees Total 245.6 245.5 63.0 62.7 60.6 59.2 60.0    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 rather than gross value.    20


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Consolidated results: Income (loss) before income taxes by segment and region    NOMURA Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter FY2018/19 FY2019/20 (billions of yen) FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q    Retail 103.1 49.5 19.9 12.2 14.0 3.3 8.1    Asset Management1 66.2 34.2 10.3 8.9 0.6 14.4 18.1    Wholesale 100.6 -111.4 -7.4 4.9 -95.9 -13.0 20.0 Three business segments total 269.9 -27.7 22.8 26.0 -81.3 4.7 46.3 Other1 56.4 -2.8 -11.2 -24.5 15.1 17.8 31.5 Segments total 326.3 -30.5 11.6 1.6 -66.2 22.5 77.7 Unrealized gain (loss) on investments in equity 1.9 -7.2 2.0 -1.1 -10.0 1.8 -2.9 securities held for operating purposes Income (loss) before income taxes 328.2 -37.7 13.6 0.5 -76.2 24.4 74.8 Geographic information: Income (loss) before income taxes2 Full year Quarter FY2018/19 FY2019/20 (billions of yen) FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Americas -8.8 -114.1 -1.7 -21.6 -87.1 -3.7 14.3 Europe -14.7 -56.9 -5.2 -11.6 -14.5 -25.5 4.5 Asia and Oceania 22.8 5.0 -0.8 1.0 -3.9 8.7 11.6 Subtotal -0.7 -165.9 -7.7 -32.2 -105.5 -20.5 30.4 Japan 328.8 128.2 21.3 32.6 29.4 44.9 44.4 Income (loss) before income taxes 328.2 -37.7 13.6 0.5 -76.2 24.4 74.8 1. From FY2018/19 1Q, Nomura Funds Research and Technologies has been moved from Asset Management to segment Other                2. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended June 30, 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.    21


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Segment “Other”    NOMURA Income (loss) before income taxes Full year Quarter (billions of yen) 80.0 60.0 56.4 40.0 31.5 20.0 15.1 17.8 0.0 -2.8 -11.2 -20.0 -24.5 -40.0 1 2 1 2 3 4 5 FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic -6.5 1.8 -13.8 -16.0 25.1 6.6 12.8 hedging transactions Realized gain (loss) on investments in equity 0.8 0.2 0.0 0.0 0.1 0.1 0.1 securities held for operating purposes Equity in earnings of affiliates 34.2 32.5 6.6 8.5 1.4 15.9 8.3 Corporate items -41.9 -36.0 -2.5 -23.7 0.6 -10.4 1.4 Others 69.7 -1.3 -1.6 6.7 -12.2 5.7 8.9 Income (loss) before income taxes 56.4 -2.8 -11.2 -24.5 15.1 17.8 31.5    22


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Retail related data (1)    NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q QoQ YoY Commissions 192.7 142.8 40.8 36.8 34.1 31.0 34.5 11.0% -15.5% Of which, stock brokerage commission 82.2 60.2 16.8 15.3 15.8 12.2 12.5 2.0% -25.9% Of which, commissions for distribution of investment trusts 87.1 57.9 18.5 15.6 11.7 12.1 16.5 36.8% -10.5% Sales credit 91.5 55.8 18.9 15.5 10.9 10.5 14.9 42.0% -21.4% Fees from investment banking and other 26.0 34.0 6.0 7.0 14.3 6.7 5.6 -16.0% -5.7% Investment trust administration fees and other 93.6 95.4 24.4 24.0 23.6 23.4 23.4 0.0% -4.1% Net interest revenue 9.2 11.5 2.8 2.4 3.8 2.6 2.3 -10.6% -16.8% Net revenue 412.9 339.5 92.8 85.7 86.8 74.2 80.6 8.7% -13.1% Non-interest expenses 309.8 290.0 72.9 73.5 72.7 70.9 72.5 2.4% -0.5% Income before income taxes 103.1 49.5 19.9 12.2 14.0 3.3 8.1 145.9% -59.3% Domestic distribution volume of investment trusts1 3,610.5 2,423.7 747.6 648.8 527.5 499.8 741.5 48.3% -0.8% Bond investment trusts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 —Stock investment trusts 3,198.6 2,130.8 669.1 583.6 451.7 426.4 618.8 45.1% -7.5% Foreign investment trusts 411.9 292.9 78.5 65.2 75.8 73.4 122.7 67.1% 56.3% Other Accumulated value of annuity insurance policies 3,094.5 3,260.7 3,139.0 3,178.2 3,225.1 3,260.7 3,308.7 1.5% 5.4% Sales of JGBs for individual investors (transaction base) 628.1 1,022.8 312.2 206.5 237.6 266.6 296.7 11.3% -5.0% Retail foreign currency bond sales 1,249.9 848.9 234.6 211.0 193.1 210.1 222.0 5.7% -5.4% 1. Excluding former Net & Call. Former Net & Call included from FY2017/18 4Q.    23


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Retail related data (2)    NOMURA Retail client assets1 (trillions of yen) 140 Other 122.8 117.7 118.6 114.7 120 114.7 110.0 113.1 Foreign investment trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Equities 75.7 71.9 76.4 79.8 68.4 71.9 70.3 Foreign currency bonds 6.1 6.3 6.1 6.1 6.2 6.3 6.4 Domestic bonds1 11.9 12.5 11.9 12.1 12.3 12.5 12.4 Stock investment trusts 9.1 9.0 9.1 9.2 8.3 9.0 9.0 Bond investment trusts 7.1 6.8 7.2 7.1 6.8 6.8 6.9 Foreign investment trusts 1.2 1.1 1.2 1.2 1.1 1.1 1.1 Other2 6.7 7.1 6.7 7.2 6.9 7.1 7.0 Total 117.7 114.7 118.6 122.8 110.0 114.7 113.1 1. Including CBs and warrants. 2.                Including annuity insurance.    24


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Retail related data (3)    NOMURA Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 2,500 2,500 2,015 2,000 2,000 1,762 1,500 1,500 1,000 1,000 682 500 500 0 0 -37 -121 -500 -500 -393 -403 FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q 1. Cash and securities inflows minus outflows, excluding regional financial institutions.    25


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Retail related data (4)    NOMURA Number of accounts (thousands) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,318 5,338 5,318 5,318 5,354 5,338 5,335 Equity holding accounts 2,822 2,908 2,823 2,829 2,905 2,908 2,914 Online service accounts1 4,387 4,569 4,427 4,470 4,526 4,569 4,601 New Individual accounts / IT share1 Full year Quarter (thousands) FY2018/19 FY2019/20 FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q New individual accounts 231 257 58 65 73 60 49 IT share2 No. of orders 67% 78% 78% 78% 77% 80% 79% Transaction value 43% 53% 53% 54% 53% 53% 53% 1. Net & Call and Home Trade were merged in January 2018 to form Online Services which started providing new services. 2. Ratio of cash stocks traded via former Home trade. From FY2017/18 4Q, ratio of cash stocks traded via Online Services.    26


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Asset Management related data (1)    NOMURA Full year1 Quarter1 FY2018/19 FY2019/20 FY2017/18 FY2018/19 QoQ YoY (billions of yen) 1Q 2Q 3Q 4Q 1Q    Revenue (excl. ACI-related) 105.3 102.9 26.3 26.1 24.5 26.0 25.8 -0.6% -1.7%    ACI-related gain/loss 22.1 -5.0 -0.2 -1.5 -8.3 4.9 8.7 0.8 -Net revenue 127.3 97.8 26.1 24.7 16.2 30.9 34.5 11.7% 32.2% Non-interest expenses 61.2 63.7 15.8 15.8 15.6 16.5 16.4 -0.7% 3.5% Income before income taxes 66.2 34.2 10.3 8.9 0.6 14.4 18.1 25.7% 76.4% Assets under management by company (trillions of yen) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Nomura Asset Management 52.4 53.4 53.1 55.1 50.2 53.4 53.4 Nomura Funds Research and Technologies 2.8 — — —Nomura Corporate Research and Asset Management 2.7 3.0 2.8 2.9 2.6 3.0 3.0 Assets under management (gross)2 57.8 56.4 55.9 58.0 52.9 56.4 56.4    Group company overlap 7.8 5.0 5.1 5.2 4.5 5.0 4.8 Assets under management (net)3 50.0 51.4 50.8 52.8 48.3 51.4 51.6 1. This table presents a reconciliation of net revenues (other than ACI-related gain/loss) and ACI-related gain/loss, which are non-GAAP measures prepared on a management accounting basis, to net revenue for the Asset Management segment. ACI-related gain/loss includes fair value adjustments of our investment in, funding cost equivalent for our investment in and dividends from ACI. 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.    3. Net after deducting duplications from assets under management (gross).    27


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Asset Management related data (2)    NOMURA Asset inflows/outflows by business1 Full year Quarter FY2018/19 FY2019/20 (billions of yen) FY2017/18 FY2018/19 1Q 2Q 3Q 4Q 1Q Investment trusts business 3,131 2,187 263 280 1,141 503 672    of which ETFs 3,022 2,531 147 510 1,391 483 642 Investment advisory business 203 20 109 156 -354 109 -164 Total net asset inflow 3,334 2,207 372 436 787 612 508 Domestic public investment trust market and Nomura Asset Management market share 2 (trillions of yen) FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Domestic public stock investment trusts Market 96.9 101.5 99.1 103.8 93.6 101.5 101.9 Nomura Asset Management share (%) 25% 26% 25% 25% 26% 26% 26% Domestic public bond investment trusts Market 12.3 11.6 12.6 12.5 11.6 11.6 11.7 Nomura Asset Management share (%) 44% 45% 44% 44% 45% 45% 44% ETF Market 32.5 37.4 34.2 37.4 33.6 37.4 38.2 Nomura Asset Management share (%) 46% 45% 45% 45% 45% 45% 45% 1. Based on assets under management (net).                2. Source Investment Trusts Association, Japan.                28


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Wholesale related data NOMURA Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 715.3 555.4 137.3 147.7 128.2 142.2 159.5 12.1% 16.2% Non-interest expenses 614.7 666.8 144.7 142.7 224.1 155.3 139.5 -10.2% -3.6% Income (loss) before income taxes 100.6 -111.4 -7.4 4.9 -95.9 -13.0 20.0 — Breakdown of Wholesale revenues1 Full year Quarter (billions of yen) FY2018/19 FY2019/20 FY2017/18 FY2018/19 QoQ YoY 1Q 2Q 3Q 4Q 1Q Fixed Income 341.6 232.8 57.7 69.6 37.5 68.0 82.5 21.2% 43.0% Equities 261.6 220.2 54.5 54.2 65.9 45.6 53.3 16.9% -2.3% Global Markets 603.2 453.0 112.2 123.8 103.5 113.6 135.7 19.5% 21.0% Investment Banking 112.1 102.3 25.1 23.9 24.7 28.6 23.7 -17.1% -5.4% Net revenue 715.3 555.4 137.3 147.7 128.2 142.2 159.5 12.1% 16.2% 1. FY2017/18 figures for Fixed Income, Equities and Investment Banking have been restated based on a reorganization in April 2018. 2. This table presents a reconciliation of the Global Markets and Investment Banking financial data, which are non-GAAP measures prepared on a management accounting basis, to net revenue for the Wholesale segment. 29


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Number of employees    NOMURA FY2017/18 FY2018/19 FY2018/19 FY2019/20 Mar Mar Jun Sep Dec Mar Jun Japan 15,819 15,852 16,474 16,296 16,138 15,852 16,423 Europe 3,057 2,909 3,030 3,020 2,963 2,909 2,775 Americas 2,362 2,357 2,364 2,390 2,384 2,357 2,230 Asia and Oceania1 6,810 6,746 6,873 6,843 6,796 6,746 6,684 Total 28,048 27,864 28,741 28,549 28,281 27,864 28,112 1. Includes Powai office in India.    30


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Disclaimer    NOMURA    This document is produced by Nomura Holdings, Inc. (“Nomura”).    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.    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.    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.    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 (https://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.    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.    The consolidated financial information in this document is unaudited.


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