Segment and geographic information

12 Months Ended

Mar. 31, 2023

Segment and Geographic Information [Abstract]

Segment and geographic information

20. Segment and geographic information:

Operating segments—

We established our Investment Management Division to replace our former Asset Management Division and the Merchant Banking Division on April 1, 2021. Accordingly, our operating management and management reporting are prepared based on our Retail, Investment Management and Wholesale Divisions. We have disclosed business segment information in accordance with this 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)(2)(3)(4)			Other (Incl. elimination)			Total
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
Year ended March 31, 2023
Non-interest revenue	¥	297,496	¥	120,096	¥	809,681		¥	175,034		¥	1,402,307
Net interest revenue		2,695		8,463		(37,301	)		(10,316	)		(36,459	)
Net revenue		300,191		128,559		772,380			164,718			1,365,848
Non-interest expenses		266,695		85,064		743,011			91,333			1,186,103
Income (loss) before income taxes	¥	33,496	¥	43,495	¥	29,369		¥	73,385		¥	179,745

(1) Non-interest revenue and Non-interest expense for the year ended March 31, 2021 include losses of ¥245,749 million arising from the U.S. Prime Brokerage Event. The losses are reported within Net gain on trading in the amount of ¥(204,188) million and in Non-interest expenses—Other in the amount of ¥41,561 million in the consolidated statements of income

(2) Non-interest revenue and Non-interest expense for the year ended March 31, 2022 include losses of ¥65,362 million arising from the U.S. Prime Brokerage Event. The losses are reported within Net gain on trading in the amount of ¥(56,073) million and in Non-interest expenses—Other in the amount of ¥9,289 million in the consolidated statements of income.

(3) Non-interest revenue and Non-interest expense for the year ended March 31, 2022 include gains of ¥14,696 million, as the recoverable amount for a part of the claim related to the loss arising from the U.S. Prime Brokerage Event was reasonably estimated. The gains are reported within Net gain on trading in the amount of ¥12,161 million and in Non-interest expenses—Other in the amount of ¥(2,535) million in the consolidated statements of income.

(4) Non-interest revenue and Non-interest expense for the year ended March 31, 2023 include gains of ¥12,025 million, as the recoverable amount for a part of the claim related to the loss arising from the U.S. Prime Brokerage Event was reasonably estimated and collected. The gains are reported within Net gain on trading in the amount of ¥9,954 million and in Non-interest expenses—Other in the amount of ¥(2,071) million in the consolidated statements of income.

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, 2021, 2022 and 2023.

	Millions of yen
	Year ended March 31
	2021			2022			2023
Net gain (loss) related to economic hedging transactions	¥	(11,450	)	¥	(9,937	)	¥	(4,846	)
Realized gain on investments in equity securities held for operating purposes		1,731			1,355			28,385
Equity in earnings of affiliates(1)		(16,410	)		36,790			47,744
Corporate items(2)		4,956			(91,073	)		(12,590	)
Other(3)(4)(5)(6)		(7,343	)		78,618			14,692
Total	¥	(28,516	)	¥	15,753		¥	73,385

(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, 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.

(5) Income before income taxes for the year ended March 31, 2023 includes a gain of approximately ¥28.0 billion from the sale of Nomura Research Institute, Ltd. ordinary shares.

(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, 2021, 2022 and 2023.

	Millions of yen
	Year ended March 31
	2021		2022		2023
Net revenue	¥	1,390,327	¥	1,358,267	¥	1,365,848
Unrealized gain (loss) on investments in equity securities held for operating purposes		11,545		5,623		(30,271	)
Consolidated net revenue	¥	1,401,872	¥	1,363,890	¥	1,335,577
Non-interest expenses	¥	1,171,201	¥	1,137,267	¥	1,186,103
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—		—
Consolidated non-interest expenses	¥	1,171,201	¥	1,137,267	¥	1,186,103
Income (loss) before income taxes	¥	219,126	¥	221,000	¥	179,745
Unrealized gain (loss) on investments in equity securities held for operating purposes		11,545		5,623		(30,271	)
Consolidated income (loss) before income taxes	¥	230,671	¥	226,623	¥	149,474

(1) Includes a reversal of unrealized gain (loss) on investments in equity securities held for operating purposes that were sold in the years ended March 31, 2021, 2022 and 2023.

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, 2021, 2022 and 2023 and Long-lived assets associated with Nomura’s operations as of March 31, 2021, 2022 and 2023. 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
	2021(2)			2022(2)			2023(3)
Net revenue(1)(3):
Americas	¥	226,741		¥	289,571		¥	290,036
Europe		142,941			131,393			163,977
Asia and Oceania		66,985			85,081			68,817
Subtotal		436,667			506,045			522,830
Japan		965,205			857,845			812,747
Consolidated	¥	1,401,872		¥	1,363,890		¥	1,335,577
Income (loss) before income taxes(3):
Americas	¥	(76,963	)	¥	(40,950	)	¥	(51,743	)
Europe		14,283			(21,774	)		9,206
Asia and Oceania		49,205			28,586			31,003
Subtotal		(13,475	)		(34,138	)		(11,534	)
Japan		244,146			260,761			161,008
Consolidated	¥	230,671		¥	226,623		¥	149,474

(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.

(3) Includes gains from the estimated recoverable amounts and collected amounts for a part of the claim related to the loss arising from the U.S. Prime Brokerage Event. 

Millions of yen
Year ended March 31
2021	2022	2023

Long-lived assets:
Americas	¥	98,611	¥	103,045	¥	114,946
Europe		65,165		53,643		53,161
Asia and Oceania		26,690		23,600		23,839
Subtotal		190,466		180,288		191,946
Japan		303,355		269,135		308,941
Consolidated	¥	493,821	¥	449,423	¥	500,887