Segment and geographic information

12 Months Ended

Mar. 31, 2022

Segment and Geographic Information [Abstract]

Segment and geographic information

21. Segment and geographic information:

Operating segments—

In April 2021, the Investment Management Division was newly established by replacing the Asset Management Division and the Merchant Banking Division. Accordingly, Nomura’s operating management and management reporting are prepared based on the Retail, the Investment Management, and the Wholesale segments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure.

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

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

Business segments’ results are shown in the following tables. Net interest revenue is disclosed because management monitors interest revenue net of interest expense for its operating decisions. Business segments’ information on total assets is not disclosed because management does not consider such information for its operating decisions and therefore, it is not reported to management.

Certain comparative amounts have been reclassified to conform to the current year’s presentation, in accordance with the realignment in April 2021.

	Millions of yen
	Retail		Investment Management		Wholesale(1)		Other (Incl. elimination)			Total
Year ended March 31, 2020
Non-interest revenue	¥	329,983	¥	101,130	¥	506,203	¥	242,021		¥	1,179,337
Net interest revenue		6,376		6,807		142,416		(25,780	)		129,819
Net revenue		336,359		107,937		648,619		216,241			1,309,156
Non-interest expenses		286,926		74,364		556,399		121,879			1,039,568
Income (loss) before income taxes	¥	49,433	¥	33,573	¥	92,220	¥	94,362		¥	269,588
Year ended March 31, 2021
Non-interest revenue	¥	366,271	¥	153,523	¥	524,019	¥	205,411		¥	1,249,224
Net interest revenue		2,538		9,627		167,337		(38,399	)		141,103
Net revenue		368,809		163,150		691,356		167,012			1,390,327
Non-interest expenses		276,480		72,142		627,051		195,528			1,171,201
Income (loss) before income taxes	¥	92,329	¥	91,008	¥	64,305	¥	(28,516	)	¥	219,126
Year ended March 31, 2022
Non-interest revenue	¥	324,642	¥	129,848	¥	617,227	¥	232,437		¥	1,304,154
Net interest revenue		3,343		18,145		85,828		(53,203	)		54,113
Net revenue		327,985		147,993		703,055		179,234			1,358,267
Non-interest expenses		268,745		76,478		628,563		163,481			1,137,267
Income (loss) before income taxes	¥	59,240	¥	71,515	¥	74,492	¥	15,753		¥	221,000

(1) Non-interest revenue and Non-interest expense for the year ended March 31, 2021 and March 31, 2022 include losses arising from the U.S. Prime Brokerage Event. See Note 23 “U.S. Prime Brokerage Event”

Transactions between operating segments are recorded within segment results based 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” for the years ended March 31, 2020, 2021 and 2022.

	Millions of yen
	Year ended March 31
	2020			2021			2022
Net gain (loss) related to economic hedging transactions	¥	17,548		¥	(11,450	)	¥	(9,937	)
Realized gain on investments in equity securities held for operating purposes		6,601			1,731			1,355
Equity in earnings of affiliates(1)		34,990			(16,410	)		36,790
Corporate items(2)		(22,240	)		4,956			(91,073	)
Other(3)(4)(5)(6)		57,463			(7,343	)		78,618
Total	¥	94,362		¥	(28,516	)	¥	15,753

(1) Includes an impairment loss of ¥47,661 million recognized in respect of Nomura’s investment in Nomura Real Estate holdings, Inc. during the year ended March 31, 2021. Based on the period and extent to which the share price of the investee (and therefore its estimated fair value) was below the carrying value of the investment, Nomura determined the impairment was other-than-temporary and an impairment loss was recognized through earnings. The loss was reported within Non-interest expenses—Other in the consolidated statements of income.

(2) Income before income taxes for the year ended March 31, 2022 includes a loss of approximately ¥62.0 billion related to legacy transactions in the U.S. from before the global financial crisis (2007 – 2008) that was recognized including legal expenses as well as certain transactions intended to mitigate future losses.

(3) Loss before income taxes for the year ended March 31, 2021 includes a gain of ¥ 71,075 million which represents the difference between the fair value of the assets acquired and the carrying value of the assets transferred by Nomura as a result of the rights conversion of the Tokyo Nihonbashi district redevelopment project.

(4) Income before income taxes for the year ended March 31, 2020 includes a gain of ¥73,293 million from the partial sale of Nomura’s investment in the ordinary shares of Nomura Research Institute, Ltd.

(5) Income before income taxes for the year ended March 31, 2022 includes a gain of approximately ¥79.0 billion from the partial sale of Nomura’s investment in the ordinary shares of Nomura Research Institute, Ltd.

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

The table below presents reconciliations of the combined business segments’ results included in the preceding table to Nomura’s reported Net revenue, Non-interest expenses and Income (loss) before income taxes in the consolidated statements of income for the years ended March 31, 2020, 2021 and 2022.

	Millions of yen
	Year ended March 31
	2020			2021		2022
Net revenue	¥	1,309,156		¥	1,390,327	¥	1,358,267
Unrealized gain (loss) on investments in equity securities held for operating purposes		(21,327	)		11,545		5,623
Consolidated net revenue	¥	1,287,829		¥	1,401,872	¥	1,363,890
Non-interest expenses	¥	1,039,568		¥	1,171,201	¥	1,137,267

	Millions of yen
	Year ended March 31
	2020			2021		2022
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—
Consolidated non-interest expenses	¥	1,039,568		¥	1,171,201	¥	1,137,267
Income (loss) before income taxes	¥	269,588		¥	219,126	¥	221,000
Unrealized gain (loss) on investments in equity securities held for operating purposes		(21,327	)		11,545		5,623
Consolidated income (loss) before income taxes	¥	248,261		¥	230,671	¥	226,623

Geographic information—

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

The tables below present a geographic allocation of Net revenue and Income (loss) before income taxes from operations by geographic areas for the years ended March 31, 2020, 2021 and 2022 and Long-lived assets associated with Nomura’s operations as of March 31, 2020, 2021 and 2022. Net revenue in Americas and Europe in the table substantially represents Nomura’s operations in the U.S. and the U.K., respectively. Net revenue and Long-lived assets have been allocated based on transactions with external customers while Income (loss) before income taxes has been allocated based on the inclusion of intersegment transactions.

	Millions of yen
	Year ended March 31
	2020			2021(2)			2022(2)
Net revenue(1):
Americas	¥	229,265		¥	226,741		¥	289,571
Europe		115,483			142,941			131,393
Asia and Oceania		42,571			66,985			85,081
Subtotal		387,319			436,667			506,045
Japan		900,510			965,205			857,845
Consolidated	¥	1,287,829		¥	1,401,872		¥	1,363,890
Income (loss) before income taxes:
Americas	¥	7,354		¥	(76,963	)	¥	(40,950	)
Europe		(14,067	)		14,283			(21,774	)
Asia and Oceania		19,817			49,205			28,586
Subtotal		13,104			(13,475	)		(34,138	)
Japan		235,157			244,146			260,761
Consolidated	¥	248,261		¥	230,671		¥	226,623

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

(2) Includes losses arising from the U.S. Prime Brokerage Event. See Note 23 “U.S. Prime Brokerage Event.”

	March 31
	2020		2021		2022
Long-lived assets:
Americas	¥	84,904	¥	98,611	¥	103,045
Europe		52,179		65,165		53,643
Asia and Oceania		29,618		26,690		23,600
Subtotal		166,701		190,466		180,288
Japan		292,212		303,355		269,135
Consolidated	¥	458,913	¥	493,821	¥	449,423