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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 February 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), Third quarter, fiscal year ended March 2017 |
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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: February 7, 2017 | By: | /s/ Hajime Ikeda | ||
| Hajime Ikeda | ||||
| Senior Managing Director | ||||
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No Spacing;Connecting Markets East & West
Consolidated Results of Operations
Third quarter, year ending March 2017
(US GAAP)
Nomura Holdings, Inc.
January 2017
© Nomura
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Outline
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 Supplemen 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 Highlights FY2016/17 1Q – 3Q Income before income taxes: Y240.5bn (+35% YoY); Net income1: Y178.4bn (+18%); ROE 2: 8.6%; EPS3: Y48.76 – Wholesale key driver as Fixed Income revenues increased and expenses declined on the back of cost reductions – All international regions profitable with international business booking Y71.4bn in income before income taxes
FY2016/17 3Q Income before income taxes: Y95.9bn (+17% QoQ); Net income1: Y70.3bn (+15%); ROE2: 10.3%:
EPS3: Y19.44 – All business divisions reported stronger net revenue and income before income taxes QoQ with Group
income before income taxes at highest level in six quarters – International business profitable for third straight quarter; Group effective tax rate of 26% Three segment income before income taxes of Y87.4bn (+43% QoQ)
Retail – Investor sentiment improved on stock market rally and yen depreciation; Sales of stocks, bonds, and
investment trusts rebounded strongly after bottoming in 1Q
Asset Management – Assets under management at record high on inflows and market factors
– Income before income taxes at highest level since year ended March 2002 driven by gains related to
American Century Investments and dividend income
Wholesale – Americas and AEJ booked stronger revenues by capitalizing on revenue opportunities from higher
client activity – Fixed Income revenues up on robust FX and resilient Rates businesses 1. Net income 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. Income (loss) before income taxes and net income (loss)1 Group (billions of yen) 106.0 Income (loss) before income taxes Net income (loss)95.9 81.8 68.7 62.870.3 46.6 51.6 61.2 35.446.8 19.9 -12.3 -19.2 FY2015/16 FY2016/17 1Q 2Q 3Q4Q1Q2Q3Q Three segment income (loss) before income taxes Wholesale Asset Management 87.4 82.3 Retail 67.561.1 53.8 48.5 -4.9 FY2015/16 FY2016/17 1Q 2Q 3Q4Q1Q2Q3Q 2
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Overview of results Highlights (billions of yen, except EPS and ROE) FY2016/17 FY2016/17 QoQYoYYoY 3Q 1-3Q
Net revenue 368.6 +6%+4%1,054.1-6% Non-interest expenses 272.7 +3%-10%813.6-13% Income before income taxes 95.9 +17%+86%240.5+35% Net income1 70.3 +15%+99%178.4+18% EPS2 Y19.44 +17%+102%Y48.76+19%
ROE3 10.3% 8.6% 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.
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Business segment results Net revenue and income (loss) before income taxes FY2016/17FY2016/17 QoQYoYYoY 3Q1-3Q
Net revenue Retail 101.3+18%-3%271.3-23% Asset Management 28.9+36%+14%76.1+1% Wholesale 197.3+10%+6%568.1-3%
Subtotal 327.5+14%+4%915.5-9% Other* 28.7-45%-17%129.2+26% Unrealized gain (loss) on investments in
equity securities held for operating purposes 12.4+64%+163%9.53.3x Net revenue 368.6+6%+4%1,054.1-6% Income Retail 25.9+80%-7%49.0-58% (loss) before income Asset Management 14.0+88%+30%33.7+9% taxes Wholesale 47.4+21%4.8x133.33.5x Subtotal 87.4+43%+80%216.0+17% Other * -3.8—15.0- Unrealized gain (loss) on investments in
equity securities held for operating purposes 12.4+64%+163%9.53.3x
Income (loss) before income taxes 95.9+17%+86%240.5+35% *Additional information on “Other” (3Q) Loss on changes to own and counterparty credit spread relating to Derivatives (Y4.8bn)1
1. Unrealized changes in the fair value of financial liabilities elected for the fair value option attributable to instrument-specific credit risk (“own credit adjustments”) are presented separately in other comprehensive income rather than through earnings from the first quarter, year ending March 2017.
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Retail Net revenue and income before income taxes (billions of yen) FY2015/16 FY2016/17 QoQYoY
3Q 4Q1Q2Q3Q Net revenue 104.3 85.083.886.2101.3+18%-3% Non-interest expenses 76.5 72.975.171.875.4+5%-1% Income before income taxes 27.8 12.28.714.425.9+80%-7%
Key points Net revenue: Y101.3bn (+18% QoQ; -3% YoY) Income before income taxes: Y25.9bn (+80% QoQ; -7% YoY) Net revenue and income before income taxes both higher QoQ - Investor sentiment improved on stock market rally and yen depreciation
- Strong rebound in sales of stocks, bonds, and investment trusts Client franchise Dec / 3Q Sep / 2Q - Retail client assets Y108.0trn Y99.1trn - Accounts with balance 5.38m 5.38m - NISA account applications1 1.73m 1.71m - Net inflows of cash and securities2 -Y338.3bn Y319bn Total sales3 (billions of yen) 4,000 Stocks Bonds Investment trusts Discretionary investments, Insurance products 3,000 2,000 1,000 0 FY2015/16 FY2016/17 3Q 4Q 1Q2Q3Q 1. Includes Junior NISA. 2.Cash and securities inflows minus outflows, excluding regional financial institutions.
3. Retail channels only. 4.Retail channels, Net & Call, and Hotto Direct. Total sales3 increased 42% QoQ Stocks: +44% QoQ – Strong rebound in Japan secondary market sales – Contributions from foreign stock sales and primary deals (Primary stock subscriptions4: Y165.9bn; +44% QoQ) Investment trusts: +11% QoQ – Inflows into US-related investment trusts (high yield bonds, stocks, REITs) and Indian stock funds Bond sales of Y729.9bn, up 109% QoQ – Sales of JGBs for individual investors (Y277.5bn) at highest level in 3 years – Robust sales of foreign bonds driven by primary deals Discretionary investment and insurance sales down 9% QoQ
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Retail: Rebound in recurring revenue, steady growth in NISA Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs)
100.0 25% 25%25%25%30% 24% 80.0 20% 60.0 76.8 71.971.371.074.010% 40.0 20.0 0% FY2015/16 FY2016/17
3Q 4Q1Q2Q3Q Discretionary investment assets under management (billions of yen)
Quarterly discretionary investment net inflows1 2,500 2,399.7 2,164.4 2,193.82,201.02,269.142.6
63.9 51.7107.2 2,000 200.1 1,500 1,000 FY2015/16 FY2016/17
3Q / Dec 4Q / Mar1Q / Jun2Q / Sep3Q / Dec Annualized recurring revenue of Y74bn – Although investment trust redemptions increased due to sharp market rebound, discretionary investment net inflows and market factors helped drive investment trust and discretionary investment assets under management higher Dec / 3QSep / 2Q Recurring revenue Y18.7bnY17.9bn – Discretionary investment net inflows1 Y42.6bnY63.9bn – Investment trust net inflows1 -Y104.5bnY8.8bn Sales of insurance products2 Y37.8bnY38.8bn NISA account openings and accumulated sales (billions of yen) Accumulated sales (lhs) 1,587 NISA accounts opened (rhs)
1,457.2 1,500.0 1,500 1,000.0 1,300 500.0 1,100 0.0 900 Mar Jun SepDecMarJunSepDec 2015 2016 1. Retail channels, Japan Wealth Management Group.
2. Retail channels. 6
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Asset Management Net revenue and income before income taxes (billions of yen) FY2015/16 FY2016/17
QoQYoY 3Q 4Q1Q2Q3Q Net revenue 25.3 20.325.921.328.9+36%+14% Non-interest expenses 14.6 14.513.713.814.9+8%+2% Income before income taxes 10.7 5.812.27.414.0+88%+30% Assets under management (trillions of yen) AuM (net)1 AuM (gross)2
50.8 51.4 42.2 48.2 44.746.043.2 40.1 37.338.5 FY2015/16 FY2016/17 Dec Mar JunSepDec 1. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and Technologies and Nomura Corporate Research and Asset Management.
2. Assets under management (gross) of above three companies.
Key points Net revenue: Y28.9bn (+36% QoQ; +14% YoY)
Income before income taxes: Y14bn (+88% QoQ; +30% YoY)
- AuM reached record high on inflows into investment trusts and investment advisory business as well as market factors- Strongest quarterly income before income taxes since year ended March 2002, driven by higher asset management fees, gains related to American Century Investments, and dividend income Investment trust business Solid inflows into ETFs and privately placed funds for regional financial institutions Top 3 publicly offered stock funds (excl. ETFs) by inflows in 3Q – U.S. Value Strategy Fund: Y52.4bn
– Nomura India Investment Fund: Y41.7bn – Nomura PIMCO World Income Strategy Fund: Y29.1bn Investment advisory and international business Japan reported continued inflows from public and private pension funds International business booked inflows driven by good performance of high yield products and won mandates in Australia and China in addition to Latin America
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Asset Management: Solid business performance and traction in ACI partnership Assets under management (net)1 by business (trillions of yen) 50.0 Investment trust businessInvestment advisory business 42.2 43.2
40.137.338.5 40.0 14.2 14.6 30.0 13.412.413.1 20.0 10.0 28.0 26.724.925.428.6 0.0 FY2015/16 FY2016/17
Dec MarJunSepDec Nomura Asset Management public investment trust market share2 26.0% 25.4% 24.9% 24.8% 24.0%24.2% 24.0% 22.0% 20.0% FY2015/16 FY2016/17 Dec Mar JunSepDec Inflows into investment trust business3
(billions of yen) MRFs, MMFs, etc. Investment trust business ETF 1,500 (excl. ETFs) Other investment trusts (excl. ETFs)
1,000 838 477 759 500 259 279 0 -102 -399-24 -471 -500 -427 -1,000 FY2015/16 FY2016/17
3Q 4Q1Q2Q3Q Partnership with ACI In November 2016, launched U.S. Value Strategy Fund managed by ACI for retail investors in Japan Made proposals to Japanese institutional investors for several ACI products; A pension fund started using a global stock product managed by ACI
Set up sales collaboration in Europe and Asia and started promoting ACI products 1. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and Technologies and Nomura Corporate Research and Asset Management. 2. Source: The Investment Trusts Association, Japan. 3. Based on net assets under management. 8
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Wholesale Net revenue and income (loss) before income taxes (billions of yen) FY2015/16 FY2016/17 QoQYoY 3Q 4Q1Q2Q3Q Global Markets 157.2 108.3170.5156.1173.0+11%+10% Investment Banking 28.8 27.920.423.824.2+2%-16%
Net revenue 186.0 136.2190.9179.9197.3+10%+6% Non-interest expenses 176.0 159.0144.3140.6149.9+7%-15% Income (loss) before income taxes 9.9 -22.846.639.347.4+21%4.8x Net revenue by region (billions of yen) 200.0 43.5 61.164.8Americas 150.0 55.9 43.2 45.4 40.839.6EMEA 100.0 39.4 27.1 23.7 21.434.3AEJ 26.1 50.0 18.0
72.2 67.758.558.6Japan 49.0 0.0 FY2015/16 FY2016/17 3Q 4Q 1Q2Q3Q Key points Net revenue: Y197.3bn (+10% QoQ; +6% YoY)
Income before income taxes: Y47.4bn (+21% QoQ; 4.8x YoY)
Net revenue and income before income taxes both up QoQ -Americas and AEJ booked stronger revenues by capitalizing on revenue opportunities from higher client activity -Fixed Income revenues up on robust FX and resilient Rates businesses -Continued to stringently control costs, although bonus provisions reflect pay for performance Net revenue by region (QoQ; YoY)
Americas: Y64.8bn (+16%; +49%) - Global Markets reported higher revenues driven by Rates, FX and Execution Services
Japan: Y58.6bn (+0.2%; -19%) - In Global Markets, FX and Equities businesses offset slowdown in Credit - Investment Banking reported a decline in ECM revenues due to lower market value of new deal issuance EMEA: Y39.6bn (+1%; -8%) - Revenues flat QoQ, supported by pick up in Emerging Markets Rates and FX AEJ: Y34.3bn (+31%; +27%) - Solid performance in Emerging Markets Rates and FX by capturing client flows and directional opportunities - Investment Banking booked stronger revenues on contributions from high- profile M&A and other businesses
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Wholesale: Global Markets Net revenue (billions of yen) Equities Fixed Income 170.5173.0QoQ 157.2 156.1+11% 62.655.8YoY 76.9 108.3 56.5+10% 80.7 80.2 107.999.6117.3 27.6 FY2015/16 FY2016/17 3Q 4Q 1Q2Q3Q Key points
Global Markets Net revenue: Y173bn (+11% QoQ; +10% YoY) - Another solid quarter, driven by continued momentum in Fixed Income businesses Fixed Income Net revenue: Y117.3bn (+18% QoQ; +46% YoY) - Strong performance in Rates and FX particularly in Emerging Markets from robust client activity Equities Net revenue: Y55.8bn (-1% QoQ; -28% YoY)- Revenues roughly unchanged QoQ as Cash Equities rebounded on the back of higher market volumes in Japan and the Americas, offsetting a slowdown in Derivatives FY2016/17 3Q net revenue by region YoY QoQ Global Global Markets Markets Fixed Income Equities
Americas EMEA AEJ Japan 0% ~ ±5% ±5% ~ ±15% ±15% ~
Americas: Fixed Income remained strong, particularly in Rates & FX, while Equities was stable QoQ despite slowdown in Derivatives
EMEA: Fixed Income revenues driven by rebound in Emerging Markets Rates & FX, while G10 Rates normalized from strong previous quarter AEJ: In Fixed Income, Emerging Markets Rates & FX booked significantly higher revenues, while Equities slowed QoQ due to lower market volumes Japan: In Fixed Income, slowdown in Credit partially offset by robust performance in FX, while in Equities Cash and Prime Services booked stronger revenues QoQ
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Wholesale: Investment Banking Net revenue1 Investment Banking (gross) (billions of yen) 42.5 49.7 33.742.241.7 Investment Banking QoQ 28.8 27.9 +2% 23.824.2YoY 20.4-16% FY2015/16 2016/17 3Q 4Q 1Q2Q3Q Key points Net revenue: Y24.2bn (+2% QoQ; -16% YoY) Investment Banking (gross) revenue of Y41.7bn - Revenues flat QoQ as revenue diversification across businesses and regions offset lower market value of deals in Japan ECM - Japan: Revenues declined QoQ on weaker quarter in ECM Retained top spot on Japan ECM league table (market share: 31.0%)2 Solid performance in DCM; Tapped into funding demand among international issuers to take #1 spot on Samurai bond league table (market share: 20.4%)2 - International: Revenues up QoQ and YoY on resilient performance in Americas and AEJ Won several cross-border and other high-profile M&A mandates
Leveraged Finance revenues grew on acquisition finance related to M&A Cross-border deals 3Q high-profile mandates Momentum continued with cross-border and multi-product mandates Grifols acquisition of NAT BloodHeineken acquisition of Punch Screening Business of Hologic /Taverns Financing (M&A $1.9bn, ALF $1.7bn) (£1.8bn) M&A / Kansai Paint acquisition of 100%
ALF Sale of partial stake in Promasidor stake in Helios Group to Ajinomoto ($532m)(€ 565m) Kronos (Hellman & Friedman,Acquisition finance for Oberthur Technologies(Advent International Blackstone, etc. portfolio companies) subsidiary) on acquisition of Morpho refinancing($3.3bn)(€ 2.4bn) Large IPOs in Japan Kyushu Railway ECM CompanyKeyenceAcushnet Holdings Global IPOPOIPO (Y416bn)(Y128bn)($378m) Executed several large DCM mandates for financial institutions and SSAs3 such as capital enhancements and foreign currency fundraising CITICChina Great Wall Samurai bondAsset Management DCM (Y100bn)USD denominated bond ($1.5bn) Federal Republic of AustriaCNP Assurances Benchmark bondTier 3 bond (€ 5.0bn)(€ 1.0bn) 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from FY2016/17 2Q in line with revised disclosure method. FY2015/16 3Q includes realized gain from private equity investment (Mitsui Life Insurance).
2. Source: Thomson Reuters (Jan – Dec 2016) 3. Sovereigns, Supranationals, Agencies
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Non-interest expenses Full year Quarter (billions of yen) (billions of yen) 400 1,500 1,257.41,230.5 Other 1,200 303.3292.5
275.7265.2272.7300 Business development expenses 900 Occupancy and related 200 depreciation Information processing 600 and communications Commissions and floor 100 brokerage 300 Compensation and benefits 0 0
FY2015/16FY2016/17 FY2014/15 FY2015/16 QoQ 3Q4Q1Q2Q3Q Compensation and benefits 596.6 574.2141.8126.8125.9128.0127.6-0.3% Commissions and floor brokerage 130.0 123.931.125.924.222.923.00.5% Inf ormation processing and communications 192.3 189.946.846.944.241.642.21.3% Occupancy and related depreciation 76.1 78.419.620.918.216.816.90.5% Business development expenses 35.2 35.99.39.88.36.98.828.6%
Other 227.2 228.254.662.254.849.154.210.5% Total 1,257.4 1,230.5303.3292.5275.7265.2272.72.8% Key points Non-interest expenses: Y272.7bn (+3% QoQ; -10% YoY) Total expenses up 3% QoQ due to slight rise in non-personnel expenses
– Compensation and benefits (-0.3% QoQ) Continued to control costs but made bonus provisions in line with pay for performance
– Business development expenses (+29% QoQ) Increased costs in Retail for marketing campaign for JGBs for individual investors
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Robust financial position Balance sheet related indicators and capital ratios Mar 2016Sep 2016Dec 2016 Total assets Y41.1trnY43.0trnY43.1trn Shareholders’ equity Y2.7trnY2.6trnY2.8trn Gross leverage 15.2x16.3x15.3x Net leverage1 9.6x9.8x8.9x
Level 3 assets2 Y0.4trnY0.4trnY0.5trn (net) Liquidity portfolio Y5.9trnY4.9trnY5.4trn (billions of yen) Mar SepDec
Basel 3 basis 2016 20162016 2 Tier 1 capital 2,578 2,5672,714 Tier 2 capital 323 306128 Total capital 2,901 2,8732,842
RWA3 15,971 13,70614,627 Tier 1 capital ratio 16.1% 18.7%18.5% CET 1 capital ratio4 15.4% 18.0%17.6% Consolidated capital 18.1% 20.9%19.4% adequacy ratio Consolidated leverage ratio5 4.28% 4.39%4.47% HQLA6 Y6.2trn Y5.2trnY4.8trn LCR6 175.8% 181.3%178.6% RWA3 and CET 1 capital ratio4 (trillions of yen) RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) 20.0 18.0%17.6%17.0%20.0% 15.1% 15.4% 16.3% 15.0 15.0% 10.0 10.0% 5.0 5.0%
0.0 Fully loaded0.0% FY2015/16 FY2016/17Basel 3 2019 applied to balance sheet Dec Mar JunSepDecat end Dec (estimate) Level 3 assets2 and net level 3 assets/Tier 1 capital
(billions of yen) Level 3 Assets 800 Net Level 3 Assets30% Net Level 3 Assets / Tier 1 Capital 600
17%16%18%20% 400 14% 14% 10% 200 0 0% FY2015/16 FY2016/17 Dec MarJunSepDec 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. Dec 2016 is preliminary. 3. Credit risk assets are calculated using the internal model method. 4. CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital divided by risk-weighted assets. 5. Tier 1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items). 6. Monthly average for each quarter.
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Funding and liquidity Balance sheet structure Highly liquid, healthy balance sheet structure – 79% of assets are highly liquid
trading and related assets that are marked-to-market and matched to trading and related liabilities through repos etc. (regionally and by currency) – Other assets are funded by equity and long-term debt, ensuring structural stability Liquidity portfolio2 Liquidity portfolio: – Y5.4trn, or 12% of total assets – Maintain a high quality liquidity portfolio surplus without the need for additional unsecured funding over a certain period Balance sheet (As of December 2016) Assets Liabilities and equity Trading liabilities Trading assets and related1
and related1 Other liabilities Short-term borrowings Cash and cash deposits Long-term borrowings Other assets Total equity Unsecured funding2 Approx. 80% of unsecured funding is long-term debt Diversified sources of funding Short-term debt 14% Long-term debt due within 1yr, 5% International 25% Loans Bank (incl. lending Long-term subordinated) market debt, 81% Average Euro MTN/Yen,
maturity Japan retail bonds, etc. Retail 4.9 years3 75% market Euro MTN/Other, Wholesale wholesale market bonds, etc. Breakdown of Long-term Funding of short-term/long- debt by long-term 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. 3. 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
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Consolidated balance sheet Mar 31, Dec 31,Increase (billions of yen) 2016 2016(Decrease) Assets Total cash and cash deposits 3,899 3,097-801 Total loans and receivables 2,970 2,883-87 Total collateralized agreements 15,078 17,9722,895 Total trading assets1 and private 16,410 16,167-243 equity investments Total other assets 2,734 2,933198 Total assets 41,090 43,0521,962 Mar 31, Dec 31,Increase 2016 2016(Decrease) Liabilities Short-term borrowings 663 621-42 Total payables and deposits 4,249 4,000-249 Total collateralized financing 16,606 17,9871,381 Trading liabilities 7,499 8,7131,213 Other liabilities 1,201 1,28483 Long-term borrowings 8,130 7,580-550 Total liabilities 38,347 40,1841,837 Equity Total NHI shareholders’ equity 2,700 2,807107 Noncontrolling interest 43 6118 Total liabilities and equity 41,090 43,0521,962 1. Including securities pledged as collateral. 16
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Value at risk Definition - 99% confidence level - 1-day time horizon for outstanding portfolio- Inter-product price fluctuations considered From April 1, 2016, to December 31, 2016 (billions of yen)- Maximum: 6.7- Minimum: 3.4- Average: 4.6 FY2014/15 FY2015/16FY2015/16FY2016/17 (billions of yen) Mar MarDecMarJunSepDec Equity 1.0 0.91.70.90.70.91.4 Interest rate 4.2 3.84.93.84.13.22.9 Foreign exchange 1.1 0.82.00.82.51.73.7 Sub-total 6.2 5.58.55.57.35.88.0 Diversification benefit -1.6 -2.0-2.8-2.0-2.9-1.9-3.1 VaR 4.6 3.55.73.54.43.94.9
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Consolidated financial highlights Full year (billions of yen) 8.6% 300 9% Net income (loss) 200 6% attributable to NHI 4.9% shareholders 224.8 ROE(%) 100 3% 131.6 0 0% Quarter (billions of yen) 100 8.6%9% 8.1% 7.0% 80 7.3% 60 6% 4.9%61.270.3 40 20 35.4 46.83% 0 -19.2 -20 0% FY2014/15 FY2015/16 Net revenue 1,604.2 1,395.7 Income (loss) before income taxes 346.8 165.2 Net income (loss) attributable to Nomura 224.8 131.6 Holdings, Inc. (“NHI”) shareholders Total NHI shareholders’ equity 2,707.8 2,700.2 ROE (%)1 8.6% 4.9% Basic-Net income (loss) attributable to NHI 61.66 36.53 shareholders per share (yen) Diluted-Net income (loss) attributable to NHI 60.03 35.52 shareholders per share (yen) Total NHI shareholders’ equity per share (yen) 752.40 748.32 FY2015/16 FY2016/17 3Q 4Q 1Q2Q3Q 354.9 280.1 338.5347.0368.6 51.6 -12.3 62.881.895.9 35.4 -19.2 46.861.270.3 2,804.7 2,700.2 2,642.32,639.42,807.2 7.3% 4.9% 7.0%8.1%8.6% 9.83 -5.31 13.0017.1019.89 9.61 -5.33 12.7116.6819.44 777.74 748.32 736.47742.39796.79 1. Quarterly ROE is calculated using annualized year-to-date net income (loss).
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Consolidated income Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2015/16FY2016/17 3Q4Q1Q2Q3Q Revenue
Commissions 453.4 432.0102.387.876.374.686.3 Fees from investment banking 95.1 118.320.029.017.323.423.7 Asset management and portfolio service fees 203.4 229.057.853.152.652.155.1 Net gain on trading 531.3 354.0105.261.5140.1118.8108.4 Gain on private equity investments 5.5 13.88.73.30.0-0.40.6 Interest and dividends 436.8 440.1107.9106.9106.6108.9117.4 Gain (loss) on investments in equity securities 29.4 -20.54.7-23.5-10.07.712.9 Other 175.7 156.527.944.135.541.139.5 Total revenue 1,930.6 1,723.1434.5362.2418.4426.1443.9 Interest expense 326.4 327.479.682.179.979.175.2 Net revenue 1,604.2 1,395.7354.9280.1338.5347.0368.6 Non-interest expenses 1,257.4 1,230.5303.3292.5275.7265.2272.7 Income (loss) before income taxes 346.8 165.251.6-12.362.881.895.9 Net income (loss) attributable to NHI shareholders 224.8 131.635.4-19.246.861.270.3
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Main revenue items Commissions Fees from investment banking Asset management and portfolio service fees Full year Quarter
FY2014/15 FY2015/16 FY2015/16FY2016/17 (billions of yen) 3Q4Q1Q2Q3Q Stock brokerage commissions 252.8 275.063.761.348.447.057.5 Other brokerage commissions 19.6 23.35.45.84.33.44.3 Commissions for distribution of investment trusts 134.3 89.520.812.415.817.619.1 Other 46.8 44.212.48.37.76.65.4 Total 453.4 432.0102.387.876.374.686.3 Equity underwriting and distribution 28.8 56.710.38.22.86.95.8 Bond underwriting and distribution 20.4 12.91.83.32.93.24.2 M&A / Financial advisory fees 24.6 33.16.511.39.49.69.6 Other 21.2 15.61.46.22.23.64.1 Total 95.1 118.320.029.017.323.423.7
Asset management fees 151.8 164.441.236.936.235.538.0 Administration fees 32.6 45.711.911.711.912.312.8 Custodial fees 19.0 19.04.74.44.54.34.3 Total 203.4 229.057.853.152.652.155.1
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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 yearQuarter (billions of yen) FY2014/15 FY2015/16FY2015/16FY2016/17 3Q4Q1Q2Q3Q
Retail 161.8127.627.812.28.714.425.9 Asset Management 32.136.710.75.812.27.414.0 Wholesale 82.215.49.9-22.846.639.347.4 Three business segments total 276.1179.748.5-4.967.561.187.4 Other 46.06.1-1.616.15.813.1-3.8 Segments total 322.1185.846.911.273.374.283.5 Unrealized gain (loss) on investments in equity securities held for operating purposes 24.7-20.74.7-23.5-10.57.612.4 Income (loss) before income taxes 346.8165.251.6-12.362.881.895.9 Geographic information: Income (loss) before income taxes1 Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2015/16FY2016/17
3Q4Q1Q2Q3Q Americas -27.6 -32.0-12.32.415.26.917.4 Europe -23.5 -67.4-5.7-16.8-4.47.92.1 Asia and Oceania 34.6 19.8-2.0-2.26.18.311.9 Subtotal -16.4 -79.6-19.9-16.616.923.231.4 Japan 363.2 244.871.64.345.958.664.6 Income (loss) before income taxes 346.8 165.251.6-12.362.881.895.9
1. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended December 31, 2016). 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.
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Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 50.0 46.0 40.0 30.0 16.1 20.0 13.1
10.0 6.15.8 0.0 -10.0 -1.6-3.8 -20.0 -30.0 FY2015/16FY2016/17 FY2014/15 FY2015/16 3Q4Q1Q2Q3Q Net gain (loss) related to economic 15.1 6.4-0.68.512.0-4.1-15.9 hedging transactions Realized gain on investments in equity 4.7 0.20.00.00.60.10.4 securities held for operating purposes Equity in earnings of affiliates 42.2 32.74.85.11.110.911.0 Corporate items -20.1 -52.3-3.2-5.2-4.3-5.3-0.8 Others 4.0 19.2-2.67.7-3.511.51.5 Income (loss) before income taxes 46.0 6.1-1.616.15.813.1-3.8
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Retail related data (1) Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2015/16FY2016/17QoQYoY 3Q4Q1Q2Q3Q
Commissions 258.9 220.351.838.938.438.947.121.0%-9.1% Of which, brokerage commission 81.8 78.918.014.413.112.419.859.8%9.7% Of which, commissions for distribution of investment trusts 134.9 93.622.014.317.620.021.15.5%-4.1% Sales credit 106.4 86.423.217.518.619.923.015.4%-0.9% Fees from investment banking and other 32.5 35.96.17.04.35.98.441.8%38.0% Investment trust administration fees and other 71.9 85.321.420.019.920.020.63.2%-3.9% Net interest revenue 6.9 7.81.81.72.61.52.354.5%27.5% Net revenue 476.5 435.6104.385.083.886.2101.317.6%-2.8%
Non-interest expenses 314.7 308.076.572.975.171.875.45.1%-1.4% Income before income taxes 161.8 127.627.812.28.714.425.980.1%-6.8% Domestic distribution volume of investment trusts1 9,478.5 5,644.91,485.8776.4761.8794.2908.214.4%-38.9% Bond investment trusts 3,110.2 1,094.0266.8146.20.20.00.0-90.0%-100.0%
Stock investment trusts 5,445.1 3,656.3842.0513.2640.5686.9801.616.7%-4.8% Foreign investment trusts 923.1 894.6377.0117.0121.0107.3106.5-0.7%-71.7% Other Accumulated value of annuity insurance policies 2,401.7 2,806.42,742.72,806.42,850.02,881.72,912.71.1%6.2%
Sales of JGBs for individual investors (transaction base) 380.6 425.976.9234.8173.676.1277.53.6x3.6x
Retail foreign currency bond sales 1,255.7 1,205.0398.5295.4185.2244.7407.766.6%2.3% 1. Excluding Net & Call and Hotto Direct.
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Retail related data (2) Retail client assets (trillions of yen) 120 109.5108.8108.0 Other 100.6100.699.1 100 95.3 Foreign investment trusts 80 Bond investment trusts Stock investment trusts 60 Domestic bonds 40 Foreign currency bonds 20 Equities 0 FY2014/15 FY2015/16FY2015/16FY2016/17 Mar MarDecMarJunSepDec Equities 67.2 60.267.460.255.859.666.7 Foreign currency bonds 6.3 5.65.65.65.55.56.0 Domestic bonds1 12.3 11.711.411.711.811.711.5 Stock investment trusts 10.3 8.69.28.68.08.18.7 Bond investment trusts 7.3 7.37.57.36.56.77.6 Foreign investment trusts 1.8 1.41.51.41.31.31.3 Other2 4.5 5.86.15.86.56.26.2 Total 109.5 100.6108.8100.695.399.1108.0 1. Including CBs and warrants. 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) 1,500 1,000 997
1,000 500 319 500 0 -43 -243 48 -356-338 0 -500 FY2015/16FY2016/17 FY2014/15 FY2015/16 3Q4Q1Q2Q3Q
1. Cash and securities inflows minus outflows, excluding regional financial institutions.
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Retail related data (4) Number of accounts FY2014/15 FY2015/16FY2015/16FY2016/17
(thousands) Mar MarDecMarJunSepDec Accounts with balance 5,294 5,3895,3845,3895,3905,3845,383 Equity holding accounts 2,719 2,8272,7962,8272,8422,8562,839 Nomura Home Trade / Net & Call accounts 4,216 4,4124,3844,4124,4434,4704,497 New Individual accounts / IT share1 Full year Quarter (thousands) FY2015/16FY2016/17 FY2014/15 FY2015/16 3Q4Q1Q2Q3Q New individual accounts 320 3368657545755 IT share1 No. of orders 59% 58%55%59%58%58%56% Transaction value 37% 36%32%36%35%35%33% 1. Percentage of cash stock transactions conducted via Nomura Home Trade.
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Asset Management related data (1) Full year Quarter FY2015/16FY2016/17 FY2014/15 FY2015/16QoQYoY (billions of yen) 3Q4Q1Q2Q3Q Net revenue 92.4 95.425.320.325.921.328.935.9%14.1% Non-interest expenses 60.3 58.714.614.513.713.814.97.8%2.2% Income before income taxes 32.1 36.710.75.812.27.414.088.2%30.4% Assets under management by company FY2014/15 FY2015/16 FY2015/16FY2016/17 (trillions of yen) Mar MarDecMarJunSepDec Nomura Asset Management 1,2 43.3 43.545.943.540.341.546.3 Nomura Funds Research and Technologies 2 3.0 3.13.33.12.82.82.9 Nomura Corporate Research and Asset Management 1 1.7 1.61.61.61.61.82.1 Nomura Private Equity Capital 2 0.2 ------ Assets under management (gross) 1,2,3 48.1 48.250.848.244.746.051.4 Group company overlap 1,2 8.8 8.18.68.17.47.58.2 Assets under management (net) 4 39.3 40.142.240.137.338.543.2 1. Historical AuM (gross) figures have been reclassified in line with a revised calculation method introduced in the third quarter of the fiscal year ended March 2016. 2. Nomura Asset Management took over the institutional investor advisory business and the retail related business of Nomura Funds Research and Technologies on July 1, 2015, and October 1, 2015, respectively, as well as all of the operations of Nomura Private Equity Capital on December 1, 2015. 3. Total assets under management for Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management, and Nomura Private Equity Capital. 4. Net after deducting duplications from assets under management (gross). 27
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Asset Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2015/16FY2016/17 (billions of yen) FY2014/15 FY2015/16 3Q4Q1Q2Q3Q Investment trusts business 3,418 2,717157412-42361,038 of which ETFs 843 2,339-102838-24477279 Investment advisory business 50 2,038646-92-16934495 Net asset inflow 3,469 4,755803320-5923491,132 Domestic public investment trust market and Nomura Asset Management market share2 (trillions of yen) FY2014/15 FY2015/16FY2015/16FY2016/17 Mar MarDecMarJunSepDec Domestic public stock investment trusts Market 80.3 78.681.778.674.177.183.0 Nomura Asset Management share (%) 20% 21%21%21%21%21%22% Domestic public bond investment trusts Market 16.7 13.916.013.911.911.713.6 Nomura Asset Management share (%) 43% 46%43%46%44%44%44% ETF Market 12.9 15.816.215.815.017.320.3 Nomura Asset Management share (%) 48% 48%47%48%47%45%46% 1. Based on assets under management (net). 2. Source:Investment Trusts Association, Japan. 28
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Wholesale related data Full year Quarter (billions of yen) FY2015/16FY2016/17 FY2014/15 FY2015/16QoQYoY 3Q4Q1Q2Q3Q Net revenue 789.9 720.3186.0136.2190.9179.9197.39.7%6.1% Non-interest expenses 707.7 704.9176.0159.0144.3140.6149.96.6%-14.9% Income (loss) before income taxes 82.2 15.49.9-22.846.639.347.420.7%4.8x Breakdown of Wholesale revenues Full year Quarter (billions of yen) FY2014/15 FY2015/16 FY2015/16FY2016/17QoQYoY
3Q4Q1Q2Q3Q Fixed Income1 396.9 275.280.227.6107.999.6117.317.8%46.2% Equities1 286.5 325.176.980.762.656.555.8-1.3%-27.5% Global Markets 683.4 600.3157.2108.3170.5156.1173.010.9%10.1% Investment Banking2 106.5 120.028.827.920.423.824.21.9%-15.9% Net revenue 789.9 720.3186.0136.2190.9179.9197.39.7%6.1% Investment Banking (gross)2 195.6 205.742.549.733.742.241.7-1.3%-2.0% 1. Fixed Income and Equities figures for FY2014/15 have been reclassified following a reorganization in April 2015. 2. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from FY2016/17 2Q in line with revised disclosure method. 29
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Number of employees FY2014/15 FY2015/16FY2015/16FY2016/17 Mar MarDecMarJunSepDec Japan 15,973 16,08316,28216,08316,79216,54316,450 Europe 3,485 3,4243,4333,4243,1703,1473,063 Americas 2,449 2,5032,5012,5032,4812,2972,279 Asia and Oceania1 6,765 6,8556,8536,8556,7696,6676,606 Total 28,672 28,86529,06928,86529,21228,65428,398 1. Includes Powai office in India. 30
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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 todiffer 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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