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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 2017
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 Number
| 1. | Consolidated Results of Operations (US GAAP), First quarter, year ending March 2018 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NOMURA HOLDINGS, INC. | ||||
| Date: August 4, 2017 | By: | /s/ Hajime Ikeda | ||
| Hajime Ikeda | ||||
| Senior Managing Director | ||||
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Connecting Markets East & West Consolidated Results of Operations First quarter, year ending March 2018 (US GAAP) Nomura Holdings, Inc. July 2017 © Nomura
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Outline Presentation Financial Supplement Executive summary (p. 2) Consolidated balance sheet (p. 16) Overview of results (p. 3) Value at risk (p. 17) Business segment results (p. 4) Consolidated financial highlights (p. 18) Retail (p. 5-6) Consolidated income (p. 19) Asset Management (p. 7-8) Main revenue items (p. 20) Wholesale (p. 9-11) Consolidated results: Income (loss) before income taxes by segment and region (p. 21) Non-interest expenses (p. 12) Robust financial position (p. 13) Segment “Other” (p. 22) Funding and liquidity (p. 14) 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 Income before income taxes and net FY2017/18 1Q highlights income1 Firmwide (billions of yen) Quarterly performance remained solid Income before income taxes Net income—Three segment net revenue and income before income taxes both up QoQ, although with varying underlying performance in each business 95.9 —International business reported fifth straight quarter of profitability with income before income 81.8 82.3 77.4 taxes of Y15.5bn 70.3 62.8 61.2 61.3 —Net revenue: Y360.8bn (+3% QoQ; +7% YoY) 56.9 —Income before income taxes: Y77.4bn (-6% QoQ; +23% YoY) 46.8 —Net income1: Y56.9bn (-7% QoQ; +21% YoY) —ROE2: 8.1% (FY16/17 4Q: 8.8%; FY16/17 1Q: 7.0%) —EPS3: Y15.77 (FY16/17 4Q: Y17.00; FY16/17 1Q: Y12.71) FY2016/17 FY2017/18 Three segment income before income taxes up 2% QoQ to Y63.8bn 1Q 2Q 3Q 4Q 1Q Retail – Net revenue roughly unchanged QoQ; Investor sentiment improved on the back of market Three segment income before income taxes improvement Wholesale – Ongoing inflows into investment trusts and discretionary investments combined with market Asset Management factors to lift recurring revenue (annualized) to Y80.9bn 87.4 Retail Asset Management 67.5 61.1 62.6 63.8 – Asset management fees increased as assets under management climbed to record high of Y46.1 trillion yen – Net revenue and income before income taxes both up QoQ also driven by gains related to American Century Investments Wholesale – Net revenue up QoQ driven by stronger Global Markets revenues FY2016/17 FY2017/18 – Focus on pay for performance and increase in expenses related to deferred compensation 1Q 2Q 3Q 4Q 1Q 1. Net income attributable to Nomura Holdings shareholders. 2 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.
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Overview of results Highlights (billions of yen, except EPS and ROE) FY2017/18 FY2016/17 FY2016/17 QoQ YoY 1Q 4Q 1Q Net revenue 360.8 349.1 +3% 338.5 +7% Non-interest expenses 283.4 266.8 +6% 275.7 +3% Income before income taxes 77.4 82.3 -6% 62.8 +23% Net income1 56.9 61.3 -7% 46.8 +21% EPS2 Y15.77 Y17.00 -7% Y12.71 +24% ROE3 8.1% 8.8% 7.0% 1. Net income attributable to Nomura Holdings shareholders. 2. Diluted net income attributable to Nomura Holdings shareholders per share. 3 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period.
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Business segment results Net revenue and income (loss) before income taxes FY2017/18 FY2016/17 FY2016/17 (billions of yen) QoQ YoY 1Q 4Q 1Q Net revenue Retail 101.7 103.2 -1% 83.8 +21% Asset Management 28.1 23.3 +21% 25.9 +8% Wholesale 179.3 171.2 +5% 190.9 -6% Subtotal 309.1 297.7 +4% 300.6 +3% Other * 51.7 54.3 -5% 48.4 +7% Unrealized gain (loss) on investments in equity securities held for operating purposes 0.0 -2.8—-10.5— Net revenue 360.8 349.1 +3% 338.5 +7% Income Retail 24.9 25.8 -3% 8.7 +187% (loss) before Asset Management 13.6 8.7 +56% 12.2 +11% income taxes Wholesale 25.4 28.1 -10% 46.6 -46% Subtotal 63.8 62.6 +2% 67.5 -6% Other * 13.6 22.6 -40% 5.8 +136% Unrealized gain (loss) on investments in equity securities held for operating purposes 0.0 -2.8—-10.5— Income before income taxes 77.4 82.3 -6% 62.8 +23% *Additional information on “Other” (1Q) ? Gain on changes to own and counterparty credit spread relating to Derivatives (Y5.0bn) 4
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Retail Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y101.7bn (-1% QoQ; +21% YoY) FY2016/17 FY17/18 Income before income taxes: Y24.9bn (-3% QoQ; +187% YoY) QoQ YoY 1Q 2Q 3Q 4Q 1Q Revenues roughly unchanged QoQ —Uptick in investor sentiment as market conditions improved Net revenue 83.8 86.2 101.3 103.2 101.7 -1% +21%—Sales of secondary equities and investment trusts were up QoQ Non-interest expenses 75.1 71.8 75.4 77.4 76.8 -1% +2% Client franchise Jun/1Q Mar/4Q —Retail client assets Y111.9trn Y107.7trn —Accounts with balance 5.34m 5.36m Income before income taxes 8.7 14.4 25.9 25.8 24.9 -3% +187% —NISA accounts opened (accumulated)1 1.61m 1.60m —Net inflows of cash and securities2 -Y115bn -Y43.1bn Total sales3 (billions of yen) 3 Total sales declined 16% QoQ Stocks Bonds Investment trusts Discretionary investments, Insurance products 4,000 Stocks: -0.4% QoQ – Stronger secondary trading of Japanese stocks and foreign stocks 3,000 stock 4 – Slowdown in primary subscriptions (Y64.7bn; -37% QoQ) 2,000 Investment trusts: +5% QoQ – Inflows into Indian stock and thematic (big data, etc.) products as well as low risk products focused on income 1,000 Bonds: Y471.5bn; -53% QoQ – Sales of JGBs for individual investors down from record high last quarter 0 (Y89.1bn; -85% QoQ), while foreign bond sales increased QoQ FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Sales of discretionary investments and insurance declined 20% QoQ 1. Including Junior NISA. 2. Cash and securities inflows minus outflows, excluding regional financial institutions. 5 3. Retail channels only. 4. Retail channels, Net & Call, and Hotto Direct.
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Retail: Client assets up on net inflows, steady growth in recurring revenues Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Annualized recurring revenue of Y80.9bn Recurring revenue cost coverage ratio (rhs) – Successful initiatives to grow Retail client assets drove ongoing net inflows 100.0 25% 26% 30% into investment trusts and discretionary investments 25% 25% 24% – Market factors also contributed to investment trust and discretionary 80.0 20% investment AuM growth 60.0 Jun/1Q Mar/4Q 78.6 80.9 71.3 71.0 74.0 10% 40.0 Recurring revenue Y20.2bn Y19.4bn – Investment trust net inflows1 Y48.0bn Y40.2bn – Discretionary investment net inflows1 Y20.7bn Y48.2bn 20.0 0% FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Sales of insurance products2 Y40.5bn Y37.8bn Investment trust asset under management Discretionary investment asset under management (trillions of yen) (billions of yen) (billions of yen) Quarterly discretionary investment net inflows1 Stock investment trusts and foreign investment trusts AuM Investment trust sales (rhs, Retail channels only) 2,509.1 2,399.7 2,430.7 12.0 1,000.0 2,500 20.7 10.0 10.1 10.3 2,269.1 42.6 48.2 9.4 2,201.0 9.2 63.9 721.9 754.9 107.2 633.0 8.0 570.5 2,000 505.4 500.0 4.0 1,500 0.0 FY2016/17 FY2017/18 0.0 1,000 FY2016/17 FY2017/18 Jun / 1Q Sep / 2Q Dec / 3Q Mar / 4Q Jun / 1Q Jun / 1Q Sep / 2Q Dec / 3Q Mar / 4Q Jun / 1Q 1. Retail channels and Japan Wealth Management Group. 6 2. Retail channels only.
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Asset Management Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y28.1bn (+21% QoQ; +8% YoY) FY2016/17 FY17/18 QoQ YoY Income before income taxes: Y13.6bn (+56% QoQ; +11% YoY) 1Q 2Q 3Q 4Q 1Q Market factors combined with inflows into ETFs helped drive AuM to a record high for third straight quarter Net revenue 25.9 21.3 28.9 23.3 28.1 +21% +8% An increase in asset management fees and gains related to American Century Investments (ACI) led to stronger net revenue and income before Non-interest expenses 13.7 13.8 14.9 14.6 14.5 -1% +6% income taxes QoQ Income before income taxes 12.2 7.4 14.0 8.7 13.6 +56% +11% Investment trust business Continued inflows into ETFs and privately placed funds for regional financial institutions Assets under management (net)1 Inflows into publicly stock funds (excl. ETFs) as the Nomura offered such India Investment Fund and Nomura PIMCO World Income Strategy Fund that (trillions of yen) Investment trust business Investment advisory business have delivered stable performance 44.4 46.1 43.2 37.3 38.5 Top 3 publicly offered stock funds (excl. ETFs) by inflows in 1Q 14.8 15.3 13.1 14.6 – Nomura India Investment Fund: Y87.8bn 12.4 – Nomura PIMCO World Income Strategy Fund Course A: Y79.0bn – Nomura Fund Wrap Bond Premium: Y44.1bn 28.6 29.5 30.8 24.9 25.4 Investment advisory and international businesses Outflows from public pension funds in Japan FY2016/17 FY2017/18 Internationally, we booked continued inflows into US high yield products, but Jun Sep Dec Mar Jun Japan equity products reported outflows 1. 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 7 Square.
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Asset Management: Product sharing with ACI Nomura Asset Management public investment trust market Flow of funds1 share2 (billions of yen) 27.0% Investment trust business Investment advisory business 26.2% 1,500 1,284 25.7% 1,132 25.4% 95 315 1,000 25.0% 24.2% 349 24.0% 500 1,038 969 230 0 344 316 6 23.0% -423 -86 -500 -169 -1,000 -592 21.0% FY2016/17 FY2017/18 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Jun Sep Dec Mar Jun Flow of funds in investment trust business1 Collaboration with ACI (billions of yen) MRFs, MMFs, etc. Investment trust business Other investment trusts (excl. ETFs) ETFs Global business collaboration 1,500 (excl. ETFs) NCRAM3 started providing US high yield bond investment management 1,203 services to ACI’s flagship retail fund in May 2017, initiating the mutual 1,000 759 provision of products between Nomura and ACI 477 500 279 Creating a strategic framework to globally expand the investment 183 management businesses of both companies and setting up a structure for 0 132 sales collaboration in each region -399 -24 -233 -471 -500 Increasing distribution of ACI products in Japan -1,000 FY2016/17 FY2017/18 Enhancing marketing activities aimed at institutional investors in Japan with several Japan pension funds now using ACI products 1Q 2Q 3Q 4Q 1Q 1. Based on assets under management (net). 2. Source: The Investment Trusts Association, Japan. 8 3. Nomura Corporate Research and Asset Management.
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Wholesale Net revenue and income before income taxes Key points (billions of yen) ?Net revenue: Y179.3bn (+5% QoQ; -6% YoY) FY2016/17 FY17/18 QoQ YoY ?Income before income taxes: Y25.4bn (-10% QoQ; -46% YoY) 1Q 2Q 3Q 4Q 1Q ?Net revenue up QoQ Global Markets 170.5 156.1 173.0 143.5 154.2 +7% -10%—Uptick in Global Markets revenues: We continued to stringently manage risks Investment Banking 20.4 23.8 24.2 27.7 25.1 -9% +23% amid low volatility and we saw a rebound in client activity towards the latter part of the quarter —Investment Banking revenues declined due to a slowdown in financing Net revenue 190.9 179.9 197.3 171.2 179.3 +5% -6% mandates Non-interest expenses 144.3 140.6 149.9 143.1 154.0 +8% +7% ?Focus on pay for performance with higher expenses booked in relation to deferred compensation Income before income taxes 46.6 39.3 47.4 28.1 25.4 -10% -46% Net revenue by region (QoQ; YoY) Net revenue by region ?Japan: Y56.7bn (+12%; -16%) —Revenues up QoQ driven by Fixed Income, primarily Rates and FX (billions of yen)—Investment Banking revenues were higher YoY, while Global Markets slowed 200.0 ?Americas: Y55.3bn (+4%; -9%) 61.1 64.8—Global Markets revenues up QoQ; Rates and Execution Services were main 55.9 55.3 Americas 150.0 53.3 revenue drivers EMEA 40.8 39.6 100.0 39.4 44.4?EMEA: Y44.4bn (-10%; +9%) 49.4 21.4 AEJ—Revenues remained firm; Slowed from strong previous quarter, particularly in 26.1 34.3 22.9 Rates and Credit 17.7 50.0 Japan—Fixed Income and Investment Banking revenues both up YoY 67.7 58.5 58.6 56.7 50.8 0.0 FY2016/17 FY2017/18 ?AEJ: Y22.9bn (+29%; +7%) —Fixed Income revenues increased QoQ driven by Emerging Markets 1Q 2Q 3Q 4Q 1Q 9
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Wholesale: Global Markets Net revenue FY2017/18 1Q net revenue by region (billions of yen) Equities Fixed Income YoY QoQ 170.5 173.0 Global Global Markets 156.1 154.2 QoQ 143.5 Markets Fixed 55.8 +7% Equities 62.6 Income 56.5 58.5 57.0 YoY -10% Americas 107.9 117.3 99.6 86.5 95.7 EMEA FY2016/17 FY2017/18 AEJ 1Q 2Q 3Q 4Q 1Q Key points Japan Net revenue: Y154.2bn (+7% QoQ; -10% YoY) 0% ~ ±5% ±5% ~ ±15% ±15% ~ Higher net revenue QoQ driven by pick up in client activity in the latter part Americas: Rates continued to drive Fixed revenues, while Equities Income of the quarter was boosted by robust performance in Derivatives Fixed Income EMEA: Rates and Credit slowed from the strong previous quarter, offset Net revenue: Y95.7bn (+11% QoQ; -11% YoY) partially by an uptick in G10 FX Revenues up QoQ driven by Emerging Markets and G10 FX Credit slowed from the strong previous quarter, Rates remained solid AEJ: In Fixed Income, Markets rebounded, but Equities declined in Emerging Equities both Cash and Derivatives Net revenue: Y58.5bn (+3% QoQ; -6% YoY) Improvement in Derivatives in Japan and Americas, while Cash Japan: Fixed Income revenues increased driven by growth in Rates and FX, revenues were roughly flat QoQ while Equities saw growth in Derivatives revenues
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Wholesale: Investment Banking Cross-border M&A related deals Steady growth in international gross revenue driven by cross-Net revenue1 divisional and cross-border collaboration Investment Banking (gross) (billions of yen) International gross revenue (Indexed as FY2016/17 1Q = 100) 33.7 42.2 41.7 50.2 45.4 141 100 Investment Banking 50% QoQ 27.7 25.1 -9% 23.8 24.2 YoY International 20.4 +23% ratio FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Executed many cross-border and multi-product mandates FY2016/17 FY2017/18 Sale of Wako Pure Chemical Industries Advisor and financing for CVC Capital 1Q 2Q 3Q 4Q 1Q M&A / shares held by Takeda Pharmaceutical (UK) acquisition of PDC Brands (US) to Fujifilm (Y251bn) (M&A: $1.4bn / ALF $825m) Key points ALF Net revenue: Y25.1bn (-9% QoQ; +23% YoY) Advisor and financing for Post Holdings Financing for Misys (UK) acquisition of Investment Banking (gross) revenue of Y45.4 billion (US) acquisition of Weetabix (UK) DH Corp (Canada) Although (M&A Ł1.4bn / ALF $2.2bn) ($6.2bn) —revenues declined QoQ partly due to seasonal factors, all regions reported stronger revenues YoY —Japan Won many financing mandates in Japan and abroad including a QoQ revenues impacted by slowdown in ECM global IPO for a Japanese company Revenues up YoY driven by uptick in DCM mandates amid low interest rate environment and contributions from Solutions business such as block LIXIL VIVA UniCredit (Italy) JBIC trades ECM / Global IPO Global USD bonds USD bonds #1 on Japan ECM and straight bond league tables2 (Y44.9bn) ($2.0bn) ($5.0bn) DCM —International M&A deals, financing related to M&A, and refinancing deals all contributed KfW(Germany) GlobalWafers (Taiwan) Credit Agricole(France) to revenues Global USD benchmark GDR offering Samurai bonds Strong Solutions business such as FX and interest rate hedging bonds ($469m) (Y203.9bn) transactions ($5.0bn) 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from FY2016/17 2Q in line with revised disclosure method. 11 2. Source: ECM; Thomson Reuters; Corporate bonds (incl. self-funded): Thomson DealWatch, Jan – Jun 2017.
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Non-interest expenses Full year Quarter Key points (billions of yen) (billions of yen) 1,500? Non-interest expenses: Y283.4bn (+6% QoQ) 400 1,230.5 Other – Compensation and benefits 1,080.4 (+19% QoQ) 275.7 265.2 283.4 300 Business development 1,000 272.7 266.8 Focus pay for performance with? on expenses higher expenses booked in relation to Occupancy and related deferred compensation depreciation 200 Information processing – Business development expenses (-24% and communications 500 QoQ) Commissions and floor 100? Decline in expenses related to Retail brokerage campaign for JGBs for individual Compensation and investors benefits 0 0 – Others (+4% QoQ) FY2016/17 FY2017/18 FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q QoQ? Higher costs at consolidated subsidiaries Compensation and benefits 574.2 496.4 125.9 128.0 127.6 114.9 136.2 18.6% Commissions and floor brokerage 123.9 94.5 24.2 22.9 23.0 24.5 23.8 -2.9% Inf ormation processing and communications 189.9 175.3 44.2 41.6 42.2 47.3 44.6 -5.7% Occupancy and related depreciation 78.4 69.8 18.2 16.8 16.9 17.9 17.1 -4.9% Business development expenses 35.9 35.1 8.3 6.9 8.8 11.1 8.4 -24.1% Other 228.2 209.3 54.8 49.1 54.2 51.1 53.3 4.3% Total 1,230.5 1,080.4 275.7 265.2 272.7 266.8 283.4 6.2% 12
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Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) Mar 2017 Jun 2017 (trillions of yen) 20.0 18.0% 17.7% 18.2% 18.1% 17.8% 20.0% Total assets Y42.9trn Y44.5trn 16.3% Shareholders’ equity Y2.8trn Y2.8trn 15.0 15.0% Gross leverage 15.4x 15.6x 10.0 10.0% Net leverage1 8.6x 9.2x 2 5.0 5.0% Level 3 assets Y0.4trn Y0.4trn (net) 0.0 0.0% Fully loaded Basel Liquidity portfolio Y5.0trn Y4.8trn FY2016/17 FY2017/18 3 2019 applied to balance sheet at Jun Sep Dec Mar Jun end Jun (estimate) (billions of yen) Mar June 2 Basel 3 basis 2017 20172 Level 3 assets and net level 3 assets/Tier 1 capital Tier 1 capital 2,690 2,751 (billions of yen) Tier 2 capital 110 101 Level 3 Assets Net Level 3 Assets Net Level 3 Assets / Tier 1 Capital 800 30% Total capital 2,799 2,853 RWA 13,978 14,374 600 Tier 1 capital ratio 19.2% 19.1% 17% 18% 17% 20% 16% 16% CET 1 capital ratio3 18.2% 18.1% 400 Consolidated capital adequacy ratio 20.0% 19.8% 10% 200 Consolidated leverage ratio4 4.63% 4.55% 5 0 0% HQLA Y4.5trn Y4.3trn FY2016/17 FY2017/18 LCR5 180.0% 186.1% Jun Sep Dec Mar Jun 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. June 2017 is preliminary. 13 3. CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital divided by risk-weighted assets. 4. Tier 1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items). 5. Daily average for each quarter.
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Funding and liquidity Balance sheet Balance sheet structure (As of June 2017) Assets Liabilities and equity Highly liquid, healthy balance sheet 2 Unsecured funding structure – 79% of assets are highly liquid unsecured funding is Approx. 80% of trading and related assets that are long-term debt marked-to-market and matched to Diversified sources of funding trading and related liabilities through Short-term debt repos etc. (regionally and by Trading liabilities 14% currency) and related1 Long-term debt due Trading assets within 1yr, 9% – Other assets are funded by equity 1 and related International and long-term debt, ensuring structural stability 25% Loans (incl. Bank subordinated) lending Long-term market Liquidity portfolio2 Other liabilities debt, 77% Euro MTN/Yen, Retail Average retail bonds, etc. Short-term borrowings market maturity Japan 5.5 years3 portfolio: Cash and cash deposits Long-term Liquidity borrowings 75% Euro – Y4.8trn, 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. 14 3. Excludes long-term debt due within one year. Redemption schedule is individually estimated by considering the probability of redemption under certain stressed scenarios.
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Consolidated balance sheet (billions of yen) Mar 31, June 30, Increase Mar 31, June 30, Increase 2017 2017 (Decrease) 2017 2017 (Decrease) Assets Liabilities Total cash and cash deposits 2,972 2,786 -186 Short-term borrowings 543 598 55 Total payables and deposits 3,708 3,694 -15 Total loans and receivables 3,097 3,503 405 Total collateralized financing 19,061 20,569 1,508 Trading liabilities 8,192 8,052 -139 Total collateralized agreements 18,730 18,379 -351 Other liabilities 1,309 1,135 -173 Long-term borrowings 7,195 7,518 323 Total trading assets1 and private 15,192 16,954 1,762 Total liabilities 40,008 41,567 1,559 equity investments Total other assets 2,860 2,856 -4 Equity Total NHI shareholders’ equity 2,790 2,847 57 Noncontrolling interest 54 64 10 Total assets 42,852 44,478 1,626 Total liabilities and equity 42,852 44,478 1,626 1. Including securities pledged as collateral. 16
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Value at risk Definition From April 1, 2017, to June 30, 2017 (billions of yen) 99% confidence level Maximum: 4.1 1-day time horizon for outstanding portfolio Minimum: 3.0 Inter-product price fluctuations considered Average: 3.5 (billions of yen) FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Equity 0.9 0.7 0.7 0.9 1.4 0.7 0.9 Interest rate 3.8 2.7 4.1 3.2 2.9 2.7 2.5 Foreign exchange 0.8 1.7 2.5 1.7 3.7 1.7 1.8 Sub-total 5.5 5.0 7.3 5.8 8.0 5.0 5.2 Diversification benefit -2.0 -1.7 -2.9 -1.9 -3.1 -1.7 -1.7 VaR 3.5 3.3 4.4 3.9 4.9 3.3 3.5 17
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Consolidated financial highlights Full year (billions of yen) 8.7% 300 9% Net income attributable to Nomura Holdings, 200 6% Inc. (‘‘NHI’’) 4.9% shareholders ROE(%) 239.6 100 3% 131.6 0 0% FY2015/16 FY2016/17 Net revenue 1,395.7 1,403.2 Income before income taxes 165.2 322.8 Net income attributable to Nomura Holdings, Inc. 131.6 239.6 (“NHI”) shareholders Total NHI shareholders’ equity 2,700.2 2,789.9 ROE (%)1 4.9% 8.7% Basic-Net income attributable to NHI 36.53 67.29 shareholders per share (yen) Diluted-Net income attributable to NHI 35.52 65.65 shareholders per share (yen) Total NHI shareholders’ equity per share (yen) 748.32 790.70 Quarter (billions of yen) 8.6% 8.7% 100 8.1% 9% 8.1% 7.0% 80 6% 60 40 61.3 61.2 70.3 56.9 3% 20 46.8 0 0% FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q 338.5 347.0 368.6 349.1 360.8 62.8 81.8 95.9 82.3 77.4 46.8 61.2 70.3 61.3 56.9 2,642.3 2,639.4 2,807.2 2,789.9 2,847.0 7.0% 8.1% 8.6% 8.7% 8.1% 13.00 17.10 19.89 17.38 16.07 12.71 16.68 19.44 17.00 15.77 736.47 742.39 796.79 790.70 802.63 18 1. Quarterly ROE is calculated using annualized year-to-date net income.
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Consolidated income Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Revenue Commissions 432.0 327.1 76.3 74.6 86.3 90.0 91.0 Fees from investment banking 118.3 92.6 17.3 23.4 23.7 28.2 22.7 Asset management and portfolio service fees 229.0 216.5 52.6 52.1 55.1 56.6 58.3 Net gain on trading 354.0 475.6 140.1 118.8 108.4 108.3 120.5 Gain on private equity investments 13.8 1.4 0.0 -0.4 0.6 1.2 0.4 Interest and dividends 440.1 441.0 106.6 108.9 117.4 108.2 134.4 Gain (loss) on investments in equity securities -20.5 7.7 -10.0 7.7 12.9 -2.8 0.1 Other 156.5 153.6 35.5 41.1 39.5 37.4 40.6 Total revenue 1,723.1 1,715.5 418.4 426.1 443.9 427.1 467.9 Interest expense 327.4 312.3 79.9 79.1 75.2 78.0 107.1 Net revenue 1,395.7 1,403.2 338.5 347.0 368.6 349.1 360.8 Non-interest expenses 1,230.5 1,080.4 275.7 265.2 272.7 266.8 283.4 Income before income taxes 165.2 322.8 62.8 81.8 95.9 82.3 77.4 Net income attributable to NHI shareholders 131.6 239.6 46.8 61.2 70.3 61.3 56.9 19
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Main revenue items Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Stock brokerage commissions 275.0 210.0 48.4 47.0 57.5 57.1 57.0 Other brokerage commissions 23.3 15.1 4.3 3.4 4.3 3.0 3.4 Commissions Commissions for distribution of investment trusts 89.5 75.1 15.8 17.6 19.1 22.6 23.2 Other 44.2 26.9 7.7 6.6 5.4 7.3 7.3 Total 432.0 327.1 76.3 74.6 86.3 90.0 91.0 Equity underwriting and distribution 56.7 22.4 2.8 6.9 5.8 6.9 3.5 Bond underwriting and distribution 12.9 16.9 2.9 3.2 4.2 6.6 3.6 Fees from M&A / Financial advisory fees 33.1 34.4 9.4 9.6 9.6 5.7 8.3 investment banking Other 15.6 18.9 2.2 3.6 4.1 9.0 7.3 Total 118.3 92.6 17.3 23.4 23.7 28.2 22.7 Asset management fees 164.4 148.7 36.2 35.5 38.0 39.0 39.9 Asset management and portfolio service Administration fees 45.7 50.2 11.9 12.3 12.8 13.1 14.0 fees Custodial fees 19.0 17.6 4.5 4.3 4.3 4.5 4.4 Total 229.0 216.5 52.6 52.1 55.1 56.6 58.3 20
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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 FY2016/17 FY2017/18 (billions of yen) FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Retail 127.6 74.8 8.7 14.4 25.9 25.8 24.9 Asset Management 36.7 42.3 12.2 7.4 14.0 8.7 13.6 Wholesale 15.4 161.4 46.6 39.3 47.4 28.1 25.4 Three business segments total 179.7 278.6 67.5 61.1 87.4 62.6 63.8 Other 6.1 37.6 5.8 13.1 -3.8 22.6 13.6 Segments total 185.8 316.2 73.3 74.2 83.5 85.1 77.4 Unrealized gain (loss) on investments in equity securities held for operating purposes -20.7 6.6 -10.5 7.6 12.4 -2.8 0.0 Income (loss) before income taxes 165.2 322.8 62.8 81.8 95.9 82.3 77.4 Geographic information: Income (loss) before income taxes1 Full year Quarter (billions of yen) FY2015/16 FY2016/17 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q Americas -32.0 50.0 15.2 6.9 17.4 10.4 7.9 Europe -67.4 14.4 -4.4 7.9 2.1 8.8 2.2 Asia and Oceania 19.8 23.7 6.1 8.3 11.9 -2.5 5.3 Subtotal -79.6 88.1 16.9 23.2 31.4 16.7 15.5 Japan 244.8 234.7 45.9 58.6 64.6 65.6 62.0 Income (loss) before income taxes 165.2 322.8 62.8 81.8 95.9 82.3 77.4 1. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended June 30, 2017). Nomura’s revenues and expenses are allocated based on the country of domicile of the legal 21 entity providing the service. This information is not used for business management purposes.
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Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 50.0 40.0 37.6 30.0 22.6 20.0 13.1 13.6 10.0 6.1 5.8 0.0 -10.0 -3.8 FY2016/17 FY2017/18 FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Net gain (loss) related to economic 6.4 -7.3 12.0 -4.1 -15.9 0.8 -0.7 hedging transactions Realized gain on investments in equity 0.2 1.1 0.6 0.1 0.4 0.0 0.0 securities held for operating purposes Equity in earnings of affiliates 32.7 32.3 1.1 10.9 11.0 9.4 7.0 Corporate items -52.3 -6.4 -4.3 -5.3 -0.8 3.9 0.2 Others 19.2 17.9 -3.5 11.5 1.5 8.5 7.0 Income (loss) before income taxes 6.1 37.6 5.8 13.1 -3.8 22.6 13.6 22
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Retail related data (1) Full year Quarter (billions of yen) FY2015/16 FY2016/17 FY2016/17 FY2017/18 QoQ YoY 1Q 2Q 3Q 4Q 1Q Commissions 220.3 171.8 38.4 38.9 47.1 47.5 47.3 -0.4% 23.1% Of which, brokerage commission 78.9 62.8 13.1 12.4 19.8 17.6 18.0 2.3% 37.2% Of which, commissions for distribution of investment trusts 93.6 82.3 17.6 20.0 21.1 23.6 23.7 0.2% 34.5% Sales credit 86.4 85.3 18.6 19.9 23.0 23.8 24.5 3.1% 31.6% Fees from investment banking and other 35.9 27.3 4.3 5.9 8.4 8.7 5.8 -33.5% 34.3% Investment trust administration fees and other 85.3 81.8 19.9 20.0 20.6 21.3 22.3 4.6% 12.4% Net interest revenue 7.8 8.3 2.6 1.5 2.3 1.9 1.8 -5.9% -30.3% Net revenue 435.6 374.4 83.8 86.2 101.3 103.2 101.7 -1.4% 21.4% Non-interest expenses 308.0 299.6 75.1 71.8 75.4 77.4 76.8 -0.8% 2.3% Income before income taxes 127.6 74.8 8.7 14.4 25.9 25.8 24.9 -3.4% 187.3% Domestic distribution volume of investment trusts 1 5,644.9 3,376.3 761.8 794.2 908.2 912.2 944.0 3.5% 23.9% Bond investment trusts 1,094.0 0.2 0.2 0.0 0.0 0.0 0.0 — Stock investment trusts 3,656.3 2,955.3 640.5 686.9 801.6 826.2 860.5 4.2% 34.3% Foreign investment trusts 894.6 420.8 121.0 107.3 106.5 86.0 83.5 -2.9% -31.0% Other Accumulated value of annuity insurance policies 2,806.4 2,941.5 2,850.0 2,881.7 2,912.7 2,941.5 2,975.3 1.1% 4.4% Sales of JGBs for individual investors (transaction base) 425.9 1,129.9 173.6 76.1 277.5 602.8 89.1 -85.2% -48.7% Retail foreign currency bond sales 1,205.0 1,131.2 185.2 244.7 407.7 293.6 328.0 11.7% 77.1% 23 1. Excluding Net & Call and Hotto Direct.
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Retail related data (2) Retail client assets (trillions of yen) 120 107.7 108.0 107.7 111.9 Other 100.6 95.3 99.1 100 Foreign investment trusts 80 Bond investment trusts 60 Stock investment trusts Domestic bonds 40 Foreign currency bonds 20 Equities 0 FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Equities 60.2 66.3 55.8 59.6 66.7 66.3 69.9 Foreign currency bonds 5.6 6.0 5.5 5.5 6.0 6.0 6.1 Domestic bonds1 11.7 11.7 11.8 11.7 11.5 11.7 11.5 Stock investment trusts 8.6 8.8 8.0 8.1 8.7 8.8 9.1 Bond investment trusts 7.3 7.3 6.5 6.7 7.6 7.3 7.6 Foreign investment trusts 1.4 1.3 1.3 1.3 1.3 1.3 1.3 Other2 5.8 6.4 6.5 6.2 6.2 6.4 6.4 Total 100.6 107.7 95.3 99.1 108.0 107.7 111.9 1. Including CBs and warrants. 24 2. Including annuity insurance.
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Retail related data (3) Net inflows of cash and securities1 Full year Quarter (billions of yen) (billions of yen) 1,000 1,000 500 500 319 48 0 0 -43 -115 -306 -243 -338 -500 -500 FY2016/17 FY2017/18 FY2015/16 FY2016/17 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) Number of accounts (thousands) FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Accounts with balance 5,389 5,363 5,390 5,384 5,383 5,363 5,342 Equity holding accounts 2,827 2,836 2,842 2,856 2,839 2,836 2,821 Nomura Home Trade1 / 4,350 4,456 4,378 4,403 4,427 4,456 4,361 Net & Call accounts New Individual accounts / IT share Full year Quarter FY2016/17 FY2017/18 (thousands) FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q New individual accounts 336 231 54 57 55 65 52 IT share2 No. of orders 58% 57% 58% 58% 56% 57% 58% Transaction value 36% 34% 35% 35% 33% 35% 35% 1. Number of accounts for previous years have been reclassified in line with definition introduced in FY2017/18 1Q. 26 2. Percentage of cash stock transactions conducted via Nomura Home Trade.
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Asset Management related data (1) Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2015/16 FY2016/17 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 95.4 99.4 25.9 21.3 28.9 23.3 28.1 20.5% 8.3% Non-interest expenses 58.7 57.1 13.7 13.8 14.9 14.6 14.5 -0.7% 6.1% Income before income taxes 36.7 42.3 12.2 7.4 14.0 8.7 13.6 56.5% 10.9% Assets under management by company (trillions of yen) FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Nomura Asset Management 43.5 47.4 40.3 41.5 46.3 47.4 48.9 Nomura Funds Research and Technologies 3.1 2.8 2.8 2.8 2.9 2.8 2.9 Nomura Corporate Research and Asset Management 1.6 2.4 1.6 1.8 2.1 2.4 2.6 Assets under management (gross) 1 48.2 52.6 44.7 46.0 51.4 52.6 54.4 Group company overlap 8.1 8.3 7.4 7.5 8.2 8.3 8.4 Assets under management (net) 2 40.1 44.4 37.3 38.5 43.2 44.4 46.1 1. Total assets under management for Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management and Wealth Square. 27 2. Net after deducting duplications from assets under management (gross).
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Asset Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Investment trusts business 2,717 1,590 -423 6 1,038 969 316 of which ETFs 2,339 1,934 -24 477 279 1,203 183 Investment advisory business 2,038 584 -169 344 95 315 -86 Net asset inflow 4,755 2,174 -592 349 1,132 1,284 230 Domestic public investment trust market and Nomura Asset Management market share2 (trillions of yen) FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Domestic public stock investment trusts Market 78.6 85.9 74.1 77.1 83.0 85.9 88.0 Nomura Asset Management share (%) 21% 23% 21% 21% 22% 23% 24% Domestic public bond investment trusts Market 13.9 12.8 11.9 11.7 13.6 12.8 13.4 Nomura Asset Management share (%) 46% 44% 44% 44% 44% 44% 43% ETF Market 15.8 23.3 15.0 17.3 20.3 23.3 24.8 Nomura Asset Management share (%) 48% 45% 47% 45% 46% 45% 45% 1. Based on assets under management (net). 28 2. Source Investment Trusts Association, Japan.
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Wholesale related data Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2015/16 FY2016/17 QoQ YoY 1Q 2Q 3Q 4Q 1Q Net revenue 720.3 739.3 190.9 179.9 197.3 171.2 179.3 4.8% -6.1% Non-interest expenses 704.9 577.8 144.3 140.6 149.9 143.1 154.0 7.6% 6.7% Income before income taxes 15.4 161.4 46.6 39.3 47.4 28.1 25.4 -9.9% -45.6% Breakdown of Wholesale revenues Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2015/16 FY2016/17 QoQ YoY 1Q 2Q 3Q 4Q 1Q Fixed Income 275.2 411.3 107.9 99.6 117.3 86.5 95.7 10.6% -11.3% Equities 325.1 231.9 62.6 56.5 55.8 57.0 58.5 2.7% -6.5% Global Markets 600.3 643.1 170.5 156.1 173.0 143.5 154.2 7.5% -9.6% Investment Banking1 120.0 96.1 20.4 23.8 24.2 27.7 25.1 -9.3% 22.9% Net revenue 720.3 739.3 190.9 179.9 197.3 171.2 179.3 4.8% -6.1% Investment Banking (gross)1 205.7 167.8 33.7 42.2 41.7 50.2 45.4 -9.6% 34.5% 29 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from FY2016/17 2Q in line with revised disclosure method.
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Number of employees FY2015/16 FY2016/17 FY2016/17 FY2017/18 Mar Mar Jun Sep Dec Mar Jun Japan 16,083 16,227 16,792 16,543 16,450 16,227 16,903 Europe 3,424 3,026 3,170 3,147 3,063 3,026 3,013 Americas 2,503 2,314 2,481 2,297 2,279 2,314 2,325 Asia and Oceania1 6,855 6,619 6,769 6,667 6,606 6,619 6,673 Total 28,865 28,186 29,212 28,654 28,398 28,186 28,914 30 1. Includes Powai office in India.
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Disclaimer 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 (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. 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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