Table of Contents
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 May 2018
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):
Table of Contents
Information furnished on this form:
Exhibit Number
| 1. | Consolidated Results of Operations (US GAAP), Fourth quarter and fiscal year ended March 2018 |
Table of Contents
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: May 11, 2018 | By: | /s/ Hajime Ikeda | ||
| Hajime Ikeda | ||||
| Senior Managing Director | ||||
Table of Contents
Connecting Markets East & West © Nomura (US GAAP) April 2018 Consolidated Results of Operations Fourth quarter, year ended March 2018 Nomura Holdings, Inc.
Table of Contents
Outline Presentation Executive summary (p. 2-3) Overview of results (p. 4) Business segment results (p. 5) Retail (p. 6-7) Asset Management (p. 8-9) Wholesale (p. 10-12) Non-interest expenses (p. 13) Robust financial position (p. 14) Funding and liquidity (p. 15) Financial Supplement Consolidated balance sheet (p. 17) Value at risk (p. 18) Consolidated financial highlights (p. 19) Consolidated income (p. 20) Main revenue items (p. 21) Consolidated results: Income (loss) before income taxes by segment and region (p. 22) Segment “Other” (p. 23) Retail related data (p. 24-27) Asset Management related data (p. 28-29) Wholesale related data (p. 30) Number of employees (p. 31)
Table of Contents
Executive summary FY2017/18 full year highlights Group net revenue and income before income taxes up YoY driven by higher contribution from Retail and Asset Management Americas set aside provisions in 4Q for legacy transactions; effective tax rate rose and net income declined from last year —Net revenue: Y1,497.0bn (+7% YoY); Income before income taxes: Y328.2bn (+2%YoY); Net income1:Y219.3bn (-8%YoY); ROE: 7.9% (FY16/17: 8.7%); EPS2: Y61.88 (FY16/17: Y65.65) Three segment income before income taxes of Y269.9bn (-3%YoY) Retail —Turnaround in retail investor sentiment as market conditions improved; recovery in income before income taxes due to strong transaction of stocks and sales of investment trusts Asset Management —Continued inflows and market factors pushed assets under management to a record high; Gains related to American Century Investments contributed to best yearly income since FY2001/02 Wholesale —Equities and Investment Banking reported stronger revenues, but low volatility and subdued client activity led to challenging year in Fixed Income —YoY drop in income before income taxes as cost such as deferred compensation expenses increased Shareholder returns —Dividend per share: Year end Y11; Annual Y20 —Launch of share buyback program to raise capital efficiency and ensure a flexible capital management policy and to deliver as stock-based compensation  Total shares: Upper limit of 100 million shares  Total value: Upper limit of Y70bn  Period: From May 16, 2018, to March 29, 2019 (1) Net income attributable to Nomura Holdings shareholders. (2) Diluted net income attributable to Nomura Holdings shareholders per share. Income before income taxes, net income1 EPS2 (billions of yen) Income before income taxes (yen) Net income 500.0 80 EPS (rhs) 65.65 400.0 61.88 60.03 60 55.81 300.0 40 35.52 200.0 20 100.0 0.0 0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 2
Table of Contents
Executive summary FY2017/18 4Q highlights Significant QoQ growth in three segment income before income taxes driven by robust Wholesale performance Lower Segment Other income impacted firm-wide income; Americas booked provisions for legacy transactions, and contributions (approx. Y45bn) from booking entity strategy in 3Q not present in 4Q - Net revenue: Y378.0bn (-7%QoQ;+8%YoY) - Income before income taxes: Y46.9bn (-61% QoQ;-43% YoY) - Net income1 : Y22.7bn (-74% QoQ; -63%YoY) - ROE2 : 3.2% (FY17/18 3Q:12.4%) - EPS3 : Y6.56 (FY17/18 3Q:Y25.12) Three segment income before income taxes of Y76. 9bn (+16% QoQ) Retail - Despite strong performance in the first half of 4Q, market adjustment in the second half of the quarter caused investor sentiment to fall; sluggish sales of stocks and investment trusts in March Asset Management - Solid business performance; Ongoing inflows kept assets under management at a high level - Contribution from gains related to American Century Investments continued but was lower than last quarter Wholesale - Higher revenues across all business lines and continued discipline on pay for performance resulted in significant improvement in income before income taxes 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 before income taxes and net income1 Firm-wide (billions of yen ) Income before income taxes Net income 120.8 95.9 88.0 81.8 82.3 83.0 77.4 61.2 70.3 62.8 61.3 56.9 51.9 46.9 46.8 22. FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Three segment income before income taxes Wholesale Asset Management Retail 87.4 76.9 67.5 63.8 66.2 61.1 62.6 63.0 FY2016/17 FY2017/18 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 3
Table of Contents
Overview of results Highlights (billions of yen, except EPS and ROE) FY2017/18 FY2017/18 QoQ YoY YoY 4Q Full year Net revenue 378.0 -7% +8% 1,497.0 +7% Non-interest expenses 331.1 +16% +24% 1,168.8 +8% Income before income taxes 46.9 -61% -43% 328.2 +2% Net income1 22.7 -74% -63% 219.3 -8% EPS2 Y6.56 -74% -61% Y61.88 -6% ROE3 3.2% 7.9% 1. Net income attributable to Nomura Holdings shareholders. 2. Diluted net income attributable to Nomura Holdings shareholders per share. 4 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period.
Table of Contents
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2017/18 FY2017/18 QoQ YoY YoY 4Q Full year Net revenue Retail 98.2 -12% -5% 412.9 +10% Asset Management 27.3 -25% +17% 127.3 +28% Wholesale 211.4 +28% +24% 715.3 -3% Subtotal 336.9 +7% +13% 1,255.6 +4% Other * 46.2 -48% -15% 239.5 +31% Unrealized gain (loss) on investments in equity securities held for operating purposes -5.0 - - 1.9 -71% Net revenue 378.0 -7% +8% 1,497.0 +7% Income Retail 21.4 -32% -17% 103.1 +38% (loss) before Asset Management 11.3 -46% +30% 66.2 +56% income taxes Wholesale 44.2 3.1x +57% 100.6 -38% Subtotal 76.9 +16% +23% 269.9 -3% Other * -25.0 - - 56.4 +50% Unrealized gain (loss) on investments in equity securities held for operating purposes -5.0 - - 1.9 -71% Income before income taxes 46.9 -61% -43% 328.2 +2% *Additional information on “Other” (4Q) Loss on changes to own and counterparty credit spreads relating to derivatives (Y3.1bn) 5 5
Table of Contents
Retail Net revenue and income before income taxes1 (billions of yen) Full year Quarter FY16/ FY16/ FY17/ FY2017/18 17 QoQ YoY 17 18 4Q 1Q 2Q 3Q 4Q Net revenue 374.4 412.9 103.2 101.7 101.8 111.3 98.2 -12% -5% Non-interest expenses 299.6 309.8 77.4 76.8 76.2 80.0 76.7 -4% -1% Income before income 74.8 103.1 25.8 24.9 25.5 31.3 21.4 -32% -17% taxes Total sales2 (billions of yen) 4,000 Stocks Bonds Investment trusts Discretionary investments, Insurance products 3,000 2,000 1,000 0 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q 1. Capital Nomura Securities in Thailand and BDO Nomura in the Philippines were included from FY2017/18 3Q. 2. Retail channels only. 3. Retail channels, Net & Call, and Hotto Direct. Key points Full year Net revenue: Y412.9bn (+10% YoY) Income before income taxes: Y103.1bn (+38% YoY) - Upturn in sentiment as market environment improved; robust performance in stocks and investment trusts - Client assets in investment trusts and discretionary investments increased with net inflows; recurring revenue climbed higher Fourth quarter Net revenue: Y98.2bn (-12%QoQ; -5% YoY) Income before income taxes: Y21.4bn ( -32%QoQ; -17%YoY) - Despite strong start in 4Q, market adjustment in the second half of the quarter resulted in low sentiment; stocks and investment trusts particularly sluggish in March - Reduced costs QoQ mainly for personnel expenses Total sales2 up 3% QoQ Stocks: +10% QoQ – Sales of stocks at highest level in 10 quarters; trading volume of secondary stocks increased, while sales of primary stocks remained unchanged (subscriptions3: Y72.3bn; +3% QoQ) Investment trusts: -14% QoQ – Although sales of investment trusts declined QoQ, 4Q saw continued inflows into products investing in high growth potential areas (robo, India, etc.) and products that help build assets over medium to long term Bonds: Y582.2bn; +18% QoQ – Primary deals contributed to growth in foreign bond sales; sales of JGBs for individual investors remained robust Discretionary investment and insurance sales down 27% QoQ 6
Table of Contents
Retail: Successful initiatives to grow assets Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs) 28% 28% 29% 100.0 26% 30% 25% 80.0 20% 60.0 84.4 89.2 90.0 78.6 80.9 40.0 10% 20.0 0% FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Investment trust and discretionary investment AuM (trillions of yen) Discretionary investment Stock investment trusts + Foreign investment trusts 15.0 13.1 13.5 12.5 12.9 13.0 2.5 2.6 2.7 2.7 2.4 10.0 5.0 10.1 10.3 10.6 10.8 10.3 0.0 FY2016/17 FY2017/18 Mar June Sep Dec Mar Continued net inflows into investment trusts and discretionary investments; Annualized recurring revenue reached Y90bn Mar 2018/4Q Dec 2017/3Q Recurring revenue Y22.2bn Y22.5bn – Investment trust net inflows1 Y114.0bn -Y62.4bn – Discretionary investment net inflows1 Y58.8bn Y79.4bn Sales of insurance products2 Y43.1bn Y56.0bn Client franchise - Retail client assets Y117.7trn Y122.8trn - Accounts with balance 5.32m 5.33m - NISA accounts opened (accumulated)3 1.64m 1.61m - Net inflows of cash and securities 4 -Y196.1bn -Y14.0bn - Inflows of cash and securities2 Y1,094.3bn Y1,211.5bn Investment trust and discretionary investment net inflows (billions of yen) 200.0 Discretionary investment net inflows 172.8 Investment trust net inflows 58.8 88.4 16.9 100.0 68.8 48.2 47.3 20.7 114.0 27.6 79.4 40.2 48.0 0.0 19.7 -62.4 -100.0 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q 1. Retail channels and Japan Wealth Management Group. 2. Retail channels only. 3.Includes Junior NISA. 4. Cash and securities inflows minus outflows, excluding regional financial institutions. 7
Table of Contents
Asset Management Net revenue and income before income taxes (billions of yen) Full year Quarter FY16/ FY2017/18 FY16/17 FY17/18 17 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 99.4 127.3 23.3 28.1 35.4 36.5 27.3 -25% +17% Non-interest 57.1 61.2 14.6 14.5 15.0 15.7 16.0 +2% +9% expenses Income before 42.3 66.2 8.7 13.6 20.5 20.8 11.3 -46% +30% income expenses Assets under management (net)1 (trillions of yen) Investment trust business Investment advisory business 50.7 50.0 46.1 48.0 44.4 16.4 15.9 15.3 15.9 14.8 30.8 32.1 34.3 34.1 29.5 FY2016/17 FY2017/18 Mar Jun Sep Dec Mar Key points Full year Net revenue: Y127.3bn (+28%YoY) Income before income taxes: Y66.2bn (+56%YoY) Approx. Y3.3trn of inflows driven by ETFs, investment trusts for discretionary investments, and Japan investment advisory business combined with market factors to lift assets under management higher Contributions from American Century Investments (ACI) related gains helped push net revenue and income before income taxes to a record high2 Fourth quarter Net revenue: Y27.3bn (-25% QoQ; +17% YoY) Income before income taxes: Y11.3bn (-46% QoQ; +30% YoY) Solid business performance; Ongoing inflows kept assets under management at a high level Contribution from ACI related gains continued but was lower than last quarter Investment trust business Inflows into ETFs, investment trusts for discretionary investments and funds distributed via banks Top 3 publicly offered stock funds (excl. ETFs) by inflows in 4Q – Nomura PIMCO World Income Strategy Fund: Y87.8bn – Nomura Japan Value and Low-Priced Stock Fund 1802: Y59.4bn – Nomura Target Income Fund: Y42.9bn Investment advisory and international businesses Inflows from large public pension funds, primarily into Japanese stock Internationally, in addition to ongoing inflows into US high yield products, global high yield products also reported inflows 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 Square. Since year ended March 2002 when reporting under US GAAP started. 8
Table of Contents
Asset Management Growth in ETF AuM driven by ongoing inflows Flow of funds1 (billions of yen) Investment trust business Investment advisory business 1,404 1,500 1,284 248 315 982 1,000 96 718 500 1,156 969 230 886 773 0 316 -86 -55 -500 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Flow of funds in investment trust business1 (billions of yen) MRFs, etc. Investment trust business ETF (excl. ETFs) Other investment trusts (excl. ETFs) 2,000 1,740 1,500 1,203 1,000 906 500 193 183 580 132 0 -233 -19 -500 -584 -1,000 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Nomura Asset Management public investment trust market share2 28.0% 27.4% 26.9% 26.4% 26.2% 26.0% 25.7% 24.0% FY2016/17 FY2017/18 Mar Jun Sep Dec Mar Growth in ETF AuM (trillions of yen) AuM increased almost 40% (approx. Inflows into ETFs Y4.4trn) over past year, approx. Y3trn of which is attributable to inflows 14.9 15 12.5 13.8 0.2 1.7 11.3 10.5 0.9 0.2 10 1.2 5 0 FY2016/17 FY2017/18 4Q / Mar 1Q / Jun 2Q / Sep 3Q / Dec 4Q / Mar 1. Based on assets under management (net). 2. Source: The Investment Trusts Association, Japan, 9
Table of Contents
Wholesale Net revenue and income before income expenses (billions of yen) Full year Quarter FY16/ FY16/ FY17/ FY2017/18 17 QoQ YoY 17 18 4Q 1Q 2Q 3Q 4Q Global Markets 643.1 613.4 143.5 154.2 136.1 140.2 182.9 +31% +27% Investment Banking 96.1 102.0 27.7 25.1 22.9 25.5 28.5 +12% +3% Net revenue 739.3 715.3 171.2 179.3 159.0 165.6 211.4 +28% +24% Non-interest expenses 577.8 614.7 143.1 154.0 142.0 151.6 167.2 +10% +17% Income before income 161.4 100.6 28.1 25.4 17.0 14.0 44.2 3.1x +57% taxes Net revenue by region (billions of yen) 250.0 200.0 Americas 68.1 150.0 53.3 55.3 48.3 53.2 EMEA 44.4 48.1 100.0 49.4 30.8 27.6 AEJ 18.5 32.1 22.9 24.3 17.7 50.0 66.4 Japan 50.8 56.7 55.6 63.0 0.0 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Key points Full year Net revenue: Y715.3bn (-3% YoY) Income before income taxes: Y100.6bn (-38% YoY) - Fixed Income revenues declined, mainly in Rates, due to low volatility and subdued client activity through to 3Q - Equities and Investment Banking revenues increased - Non-interest expenses increased YoY due mainly to higher commissions and floor brokerage in line with trading volumes and expenses related to deferred compensation Fourth quarter Net revenue: Y211.4bn (+28% QoQ; +24% YoY) Income before income taxes: Y 44.2bn (3.1x QoQ; +57% YoY) Revenues up QoQ in all business lines - Fixed Income revenues grew across all regions overseas; uptick in client activity drove strong performance in Equities - Investment Banking revenues at highest level in nine quarters ncome before income taxes improved significantly partly due to focus on pay for performance Net revenue by region (QoQ; YoY) Americas: Y68.1bn (+28%; +28%) - Best quarterly revenue since April 2010; Global Markets revenues were strong Japan: Y63bn (-5%; +24%) - Equities revenues increased, while Fixed Income and Investment Banking slowed EMEA: Y48.1bn (+74%; -3%) - Solid quarter in Fixed Income primarily driven by Rates; one-off charge1 booked in 3Q not present in 4Q AEJ: Y32.1bn (+74%;+82%) - Robust performance in Emerging Markets; one-off charge1 booked in 3Q not present in 4Q 1. Unrealized loss related to margin loan (approx.Y14bn; EMEA and AEJ approx. Y7bn each) 10
Table of Contents
: Global Markets Net revenue (billions of yen) Equities Fixed Income 182.9 154.2 143.5 QoQ 136.1 140.2 84.1 +31% 58.5 57.0 60.8 YoY 57.8 +27% 86.5 95.7 98.8 78.3 79.4 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Key points Fourth quarter Net revenue: Y182.9bn (+31% QoQ; +27% YoY) Both Fixed Income and Equities reported stronger revenues QoQ against a backdrop of higher client activity and volatility from end of last year Fixed Income Net revenue: Y98.8bn (+25% QoQ; +14% YoY) Rebound in Emerging Markets, and QoQ improvement in Rates and Credit Equities Net revenue: Y84.1bn (+38% QoQ; +47% YoY) Derivatives had strong quarter in Japan and Americas, while performance in Cash Equities remained robust FY2017/18 full year and 4Q net revenue by region Full year Quarter -5% QoQ YoY FI EQ Americas EMEA AEJ Japan FY2016/17 FY2017/18 0% ~ ±5% ±5% ~ ±15% ±15% ~ Full year Equities booked stronger revenues driven by Japan and Americas, while Fixed Income was slower, particularly in the Flow business due to low volatility Fourth quarter Americas: In Fixed Income, Rates had a slower quarter, while Credit and Securitized Products revenues increased; In Equities, both Derivatives and Cash Equities reported stronger revenues EMEA: Rates, Credit, and Emerging Markets all booked higher revenues AEJ: Emerging Markets revenues increased significantly, and Equities revenues gained from last quarter, which included a one-off charge Japan: In Fixed Income, G10 FX and Credit had a slow quarter, while in Equities, Cash Equities performance was robust and Derivatives had another strong quarter 11
Table of Contents
Wholesale: Investment Banking Net revenue Investment Banking (gross) (billions of yen ) 50.2 45.4 43.5 38.9 51.4 Investment Banking +12% 27.7 28.5 QoQ 25.1 25.5 22.9 +3% YoY FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Key points Fourth quarter Net revenue: Y28.5bn (+12% QoQ; +3% YoY) - Strongest net revenue in nine quarters, partially reflecting non-recurrence of a one-off charge1 booked in 3Q Gross revenue: Y51.4bn (+32% QoQ; +2% YoY) - International businesses drove a QoQ increase in revenues, despite a decline in Japan on the back of lower M&A revenues - Japan: Robust ECM revenues supported by increase in Solutions transactions; DCM revenues rose due to greater financing needs amid low interest rate environment Topped Japan ECM and Japan-related M&A league tables2 - International: DCM business and M&A related financing transactions contributed to revenues 1. Unrealized loss related to margin loan (gross: approx. Y14bn; net: approx. Y7bn) 2. Source: Thomson Reuters; Apr 2017 – Mar 2018 3. Thomson Reuters estimate Cross-border deals Gross revenue up YoY supported by high profile deals Gross revenues increased, driven by global performance; one-off charge1 booked in EMEA in 3Q offset by other regions Highest full year gross revenues booked in Americas and AEJ since year ended March 2010 Major 4Q mandates Full year gross revenue (billions of yen) Dar Al-Arkan +7% Shizuoka Bank (Saudi Arabia) USD 179.1 Euro-USD CB denominated Sukuk ($308mn) bond 167.8 ($500mn) GLP J-REIT Toyota Industries ECM / Global PO USD denominated bond DCM (Y60.1bn) ($1.0bn) Nomura Research Inter- Lotte Shopping Institute (South Korea) Domestic foreign national Exchangeable bond currency denominated ($284mn) bond (AUD50mn) Toray Industries MassMutual (US) acquisition of TenCate sale of MassMutual Advanced Composites Japan to Nissay (Netherlands) (Y104.2bn) (€930mn) Cevian Capital Atlantia Spa (Italy) Japan sale of stake in AB acquisition of stake in M&A Volvo to Zhejiang Geely Aero 1 Global (China) (Luxembourg) (SEK 26.7bn3) (€1.1bn) JERA integration of Chubu Electric and TEPCO Fuel & Power’s business under JV (Y1.2trn) FY2016/17 FY2017/18 12
Table of Contents
Non-interest expenses Full year Quarter (billions of yen ) (billions of yen ) 1,500 400 Other 1,168.8 331.1 1,080.4 283.4 285.9 300 Business development 1,000 266.8 268.5 expenses Occupancy and related depreciation 200 Information processing and communications 500 Commissions and floor 100 brokerage Compensation and benefits 0 0 FY2016/17 FY2017/18 FY2016/17 FY2017/18 QoQ 4Q 1Q 2Q 3Q 4Q Compensation and benefits 496.4 530.6 114.9 136.2 122.0 131.4 141.0 7.3% Commissions and floor brokerage 94.5 99.9 24.5 23.8 25.2 25.3 25.6 1.4% Information processing and communications 175.3 184.8 47.3 44.6 47.3 49.0 43.9 -10.5% Occupancy and related depreciation 69.8 67.9 17.9 17.1 17.2 16.8 16.8 0.1% Business development expenses 35.1 36.8 11.1 8.4 7.8 9.8 10.7 9.5% Other 209.3 248.9 51.1 53.3 48.9 53.6 93.1 73.7% Total 1,080.4 1,168.8 266.8 283.4 268.5 285.9 331.1 15.8% Key points Full year Non-interest expenses: Y 1,168.8bn (+8%YoY) – Compensation and benefits (+7%YoY) Higher deferred compensation expenses Continued focus on pay for performance – Non-personnel expenses (+9% YoY) Increased commissions and floor brokerage due to higher trading volumes Information processing and communications expenses increased mainly for system integration expenses Provisions booked in Americas for legacy transactions Fourth quarter Non-interest expenses: Y331.1bn (+16% QoQ) – Compensation and benefits (+7% QoQ) Bonus provisions in line with performance – Non-personnel expenses (+23% QoQ) Information and communications expenses decreased due to lower depreciation costs Provisions booked in Americas for legacy transactions combined with higher commissions and floor brokerage fees and professional fees to drive Other expenses up 13
Table of Contents
Robust financial position Balance sheet related indicators and capital ratios Mar 2017 Dec 2017 Mar 2018 Total assets Y42.9trn Y44.5trn Y40.6trn Shareholders’ equity Y2.8trn Y2.8trn Y2.7trn Gross leverage 15.4x 15.7x 14.8x Net leverage1 8.6x 9.1x 8.9x Level 3 assets2 Y0.4trn Y0.5trn Y0.5trn (net) Liquidity portfolio Y5.0trn Y4.9trn Y4.6trn (billions of yen) 2 Mar Dec Mar Basel 3 basis 2017 2017 2018 Tier 1 capital 2,690 2,742 2,666 Tier 2 capital 110 85 66 Total capital 2,799 2,827 2,732 RWA 13,978 15,010 15,116 Tier 1 capital ratio 19.2% 18.2% 17.6% CET 1 capital ratio3 18.2% 17.3% 16.5% Consolidated capital 20.0% 18.8% 18.0% adequacy ratio Consolidated leverage ratio4 4.63% 4.49% 4.73% HQLA5 Y4.5trn Y4.1trn Y4.0trn LCR5 180.0% 175.9% 153.6% RWA and CET 1 capital ratio3 RWA (Basel 3) (lhs) CET1 capital ratio (Basel 3) (rhs) (trillions of yen) 18. 2% 20.0 18.1% 17.4% 20.0% 17.3% 16.5% 15.0 15.0% 10.0 10.0% 5.0 5.0% 0.0 0.0% FY2016/17 FY2017/18 Mar Jun Sep Dec Mar Level 3 assets2 and net level 3 assets/Tier 1 capital (billions of yen) Level 3 Assets Net Level 3 Assets Net Level 3 Assets / Tier 1 Capital 800 30% 600 18% 18% 20% 17% 16% 16% 400 10% 200 0 FY2016/17 FY2017/18 0% Mar Jun Sep Dec Mar 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. Mar 2018 is preliminary. 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. 14
Table of Contents
Funding and liquidity Balance sheet structure Highly liquid, healthy balance sheet structure – 77% 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: – Y4.6trn, or 11% 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 March 2018) Assets Liabilities and equity Trading liabilities and related1 Trading assets 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 16% Long-term debt due within 1yr, 7% International 26% Loans (incl. Bank subordinated) lending Long-term market debt, 77% Euro MTN/Yen, Retail Average retail bonds, etc. market maturity Japan 5.8 years3 74% 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. 15 3. Excludes long-term debt due within one year. Redemption schedule is individually estimated by considering the probability of redemption under certain stressed scenarios.
Table of Contents
Financial Supplement
Table of Contents
Consolidated balance sheet1 (billions of yen) Mar 31, March 31, Increase Mar 31, March 31, Increase 2017 2018 (Decrease) 2017 2018 (Decrease) Assets Liabilities Total cash and cash deposits 2,972 2,959 -13 Short-term borrowings 543 743 200 Total payables and deposits 3,708 3,805 96 Total loans and receivables 3,186 4,118 932 Total collateralized financing 19,061 16,697 -2,364 Trading liabilities 8,192 8,213 22 Total collateralized agreements 18,730 16,238 -2,492 Other liabilities 1,309 951 -358 Long-term borrowings 7,195 7,383 187 Total trading assets2 and private 15,192 14,985 -207 Total liabilities 40,008 37,792 -2,217 equity investments Total other assets 2,772 2,292 -480 Equity Total NHI shareholders’ equity 2,790 2,749 -41 Noncontrolling interest 54 51 -3 Total assets 42,852 40,591 -2,261 Total liabilities and equity 42,852 40,591 -2,261 1. From the year ended in March 31, 2018, certain changes in scope of Receivables from customers, Receivables from other than customers, Payables to customers and Payables to other than customers have been made by revisiting the definition of customers in our consolidated balance sheets. We have reclassified previously reported amounts of Receivables from other than customers to Receivables from customers by 159.7 billion yen, from Other assets Other to Receivables from other than customers by 88.7 billion yen and from Payables to other than customers to Payables to customers by 60.3 billion yen respectively to conform to the current presentation. 17 2. Including securities pledged as collateral.
Table of Contents
END Value at risk Definition From April 1, 2017, to March 31, 2018 (billions of yen) 99% confidence level Maximum: 9.0 1-day time horizon for outstanding portfolio Minimum: 3.0 Inter-product price fluctuations considered Average: 4.3 (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Equity 0.7 1.2 0.7 0.9 0.8 1.2 1.2 Interest rate 2.7 3.1 2.7 2.5 3.0 2.7 3.1 Foreign exchange 1.7 3.2 1.7 1.8 2.1 2.6 3.2 Sub-total 5.0 7.5 5.0 5.2 5.9 6.5 7.5 Diversification benefit -1.7 -1.1 -1.7 -1.7 -1.7 -1.3 -1.1 VaR 3.3 6.4 3.3 3.5 4.3 5.2 6.4 18
Table of Contents
Consolidated financial highlights Full year (billions of yen) 300 10% 8.7% 7.9% Net income 8% attributable to Nomura Holdings, 200 Inc. (‘‘NHI’’) 6% 239.6 shareholders ROE(%) 4% 100 219.3 2% 0 0% FY2016/17 FY2017/18 Net revenue 1,403.2 1,497.0 Income before income taxes 322.8 328.2 Net income attributable to Nomura Holdings, Inc. 239.6 219.3 (“NHI”) shareholders Total NHI shareholders’ equity 2,789.9 2,749.3 ROE (%)1 8.7% 7.9% Basic-Net income attributable to NHI 67.29 63.13 shareholders per share (yen) Diluted-Net income attributable to NHI 65.65 61.88 shareholders per share (yen) Total NHI shareholders’ equity per share (yen) 790.70 810.31 Quarter (billions of yen) 100 9.3% 10% 8.7% 8.1% 7.7% 7.9% 80 8% 60 88.0 6% 40 4% 61.3 56.9 51.9 20 2% 22.7 0 0% FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q 349.1 360.8 351.5 406.6 378.0 82.3 77.4 83.0 120.8 46.9 61.3 56.9 51.9 88.0 22.7 2,789.9 2,847.0 2,836.2 2,841.7 2,749.3 8.7% 8.1% 7.7% 9.3% 7.9% 17.38 16.07 14.70 25.55 6.68 17.00 15.77 14.45 25.12 6.56 790.70 802.63 813.57 835.72 810.31 1. Quarterly ROE is calculated using annualized year-to-date net income. 19
Table of Contents
Consolidated income Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Revenue Commissions 327.1 373.3 90.0 91.0 85.3 101.7 95.4 Fees from investment banking 92.6 101.7 28.2 22.7 27.1 29.3 22.6 Asset management and portfolio service fees 216.5 245.6 56.6 58.3 61.2 63.8 62.3 Net gain on trading 475.6 442.9 108.3 120.5 88.4 87.7 146.3 Gain (loss) on private equity investments 1.4 -0.9 1.2 0.4 -0.3 -2.4 1.5 Interest and dividends 441.0 585.7 108.2 134.4 141.6 161.4 148.2 Gain (loss) on investments in equity securities 7.7 2.7 -2.8 0.1 3.1 4.5 -5.0 Other 153.6 221.2 37.4 40.6 56.0 84.6 39.9 Total revenue 1,715.5 1,972.2 427.1 467.9 462.4 530.6 511.2 Interest expense 312.3 475.2 78.0 107.1 110.9 124.0 133.2 Net revenue 1,403.2 1,497.0 349.1 360.8 351.5 406.6 378.0 Non-interest expenses 1,080.4 1,168.8 266.8 283.4 268.5 285.9 331.1 Income before income taxes 322.8 328.2 82.3 77.4 83.0 120.8 46.9 Net income attributable to NHI shareholders 239.6 219.3 61.3 56.9 51.9 88.0 22.7 20
Table of Contents
Main revenue items Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Stock brokerage commissions 210.0 243.8 57.1 57.0 54.6 68.4 63.8 Other brokerage commissions 15.1 17.0 3.0 3.4 3.2 4.3 6.0 Commissions Commissions for distribution of investment trusts 75.1 85.7 22.6 23.2 20.9 22.1 19.5 Other 26.9 26.9 7.3 7.3 6.6 6.9 6.2 Total 327.1 373.3 90.0 91.0 85.3 101.7 95.4 Equity underwriting and distribution 22.4 23.2 6.9 3.5 10.5 5.2 4.1 Bond underwriting and distribution 16.9 16.3 6.6 3.6 4.4 4.9 3.4 Fees from M&A / Financial advisory fees 34.4 39.3 5.7 8.3 8.2 13.7 9.1 investment banking Other 18.9 22.9 9.0 7.3 4.0 5.5 6.0 Total 92.6 101.7 28.2 22.7 27.1 29.3 22.6 Asset management Asset management fees 148.7 170.4 39.0 39.9 42.5 43.9 44.1 Administration fees 50.2 57.9 13.1 14.0 14.3 15.5 14.1 and portfolio service Custodial fees 17.6 17.3 4.5 4.4 4.4 4.3 4.2 fees Total 216.5 245.6 56.6 58.3 61.2 63.8 62.3 21
Table of Contents
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 (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Retail1 74.8 103.1 25.8 24.9 25.5 31.3 21.4 Asset Management 42.3 66.2 8.7 13.6 20.5 20.8 11.3 Wholesale 161.4 100.6 28.1 25.4 17.0 14.0 44.2 Three business segments total 278.6 269.9 62.6 63.8 63.0 66.2 76.9 Other 37.6 56.4 22.6 13.6 17.3 50.4 -25.0 Segments total 316.2 326.3 85.1 77.4 80.3 116.6 51.9 Unrealized gain (loss) on investments in equity 6.6 1.9 -2.8 0.0 2.7 4.2 -5.0 securities held for operating purposes Income (loss) before income taxes 322.8 328.2 82.3 77.4 83.0 120.8 46.9 Geographic information: Income (loss) before income taxes2 Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Americas 50.0 -8.8 10.4 7.9 -1.5 10.8 -26.0 Europe 14.4 -14.7 8.8 2.2 -1.4 -16.5 0.9 Asia and Oceania 23.7 22.8 -2.5 5.3 3.7 7.4 6.4 Subtotal 88.1 -0.7 16.7 15.5 0.9 1.7 -18.7 Japan 234.7 328.8 65.6 62.0 82.2 119.1 65.6 Income (loss) before income taxes 322.8 328.2 82.3 77.4 83.0 120.8 46.9 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from FY2017/18 3Q. 22 2. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended March 31, 2018). Nomura’s revenues and expenses are allocated based on the country of domicile of the legal entity providing the service. This information is not used for business management purposes.
Table of Contents
Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 80.0 56.4 60.0 50.4 37.6 40.0 22.6 17.3 20.0 13.6 0.0 -20.0 -40.0 -25.0 1 2 1 2 3 4 5 FY2016/17 FY2017/18 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Net gain (loss) related to economic -7.3 -6.5 0.8 -0.7 0.6 -8.0 1.7 hedging transactions Realized gain (loss) on investments in equity 1.1 0.8 0.0 0.0 0.3 0.4 0.0 securities held for operating purposes Equity in earnings of affiliates 32.3 34.2 9.4 7.0 8.4 7.8 11.0 Corporate items -6.4 -41.9 3.9 0.2 1.6 -3.4 -40.2 Others 17.9 69.7 8.5 7.0 6.4 53.7 2.6 Income (loss) before income taxes 37.6 56.4 22.6 13.6 17.3 50.4 -25.0 23
Table of Contents
Retail related data (1) Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q QoQ YoY Commissions 171.8 192.7 47.5 47.3 43.8 54.1 47.5 -12.2% 0.2% Of which, stock brokerage commission 62.8 82.2 17.6 18.0 17.2 25.4 21.7 -14.6% 23.4% Of which, commissions for distribution of investment trusts 82.3 87.1 23.6 23.7 21.3 22.6 19.5 -13.9% -17.6% Sales credit 85.3 91.5 23.8 24.5 25.7 23.8 17.5 -26.4% -26.4% Fees from investment banking and other 27.3 26.0 8.7 5.8 7.5 6.6 6.1 -7.1% -29.9% Investment trust administration fees and other 81.8 93.6 21.3 22.3 23.0 24.2 24.0 -0.9% 12.4% Net interest revenue 8.3 9.2 1.9 1.8 1.8 2.6 3.0 16.7% 59.1% Net revenue1 374.4 412.9 103.2 101.7 101.8 111.3 98.2 -11.8% -4.9% Non-interest expenses1 299.6 309.8 77.4 76.8 76.2 80.0 76.7 -4.1% -0.9% Income before income taxes1 74.8 103.1 25.8 24.9 25.5 31.3 21.4 -31.6% -16.9% Domestic distribution volume of investment trusts2 3,376.3 3,610.5 912.2 944.0 886.0 905.3 875.3 -3.3% -4.0% Bond investment trusts 0.2 0.0 0.0 0.0 0.0 0.0 0.0 - -Stock investment trusts 2,955.3 3,198.6 826.2 860.5 790.8 820.6 726.8 -11.4% -12.0% Foreign investment trusts 420.8 411.9 86.0 83.5 95.2 84.7 148.5 75.4% 72.7% Other Accumulated value of annuity insurance policies 2,941.5 3,094.5 2,941.5 2,975.3 3,006.2 3,057.6 3,094.5 1.2% 5.2% Sales of JGBs for individual investors (transaction base) 1,129.9 628.1 602.8 89.1 120.2 194.6 224.1 15.2% -62.8% Retail foreign currency bond sales 1,131.2 1,249.9 293.6 328.0 349.9 253.7 318.4 25.5% 8.5% Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from FY2017/18 3Q. Excluding former Net & Call. Former Net & Call included from FY2017/18 4Q. 24
Table of Contents
Retail related data (2) Retail client assets1 (trillions of yen) 140 122.8 Other 117.7 117.7 111.9 115.2 120 107.7 Foreign investment trusts 107.7 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency bonds 20 Equities 0 FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Equities 66.3 75.7 66.3 69.9 72.4 79.2 75.7 Foreign currency bonds 6.0 6.1 6.0 6.1 6.4 6.2 6.1 Domestic bonds2 11.7 11.9 11.7 11.5 11.6 11.8 11.9 Stock investment trusts 8.8 9.1 8.8 9.1 9.3 9.5 9.1 Bond investment trusts 7.3 7.1 7.3 7.6 7.5 7.9 7.1 Foreign investment trusts 1.3 1.2 1.3 1.3 1.3 1.3 1.2 Other3 6.4 6.7 6.4 6.4 6.7 6.9 6.7 Total 107.7 117.7 107.7 111.9 115.2 122.8 117.7 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from December 31, 2017. 2. Including CBs and warrants. 3. Including annuity insurance. 25
Table of Contents
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 0 0 -78 -14 -43 -196 -306 -115 -403 -500 -500 FY2016/17 FY2017/18 FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q 1. Cash and securities inflows minus outflows, excluding regional financial institutions. 26
Table of Contents
Retail related data (4) Number of accounts (thousands) FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,363 5,318 5,363 5,342 5,328 5,326 5,318 Equity holding accounts 2,836 2,822 2,836 2,821 2,832 2,800 2,822 Online service accounts1, 2 4,456 4,387 4,456 4,361 4,301 4,342 4,387 New Individual accounts / IT share2 Full year Quarter FY2016/17 FY2017/18 (thousands) FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q New individual accounts 231 231 65 52 53 60 66 IT share3 No. of orders 57% 67% 57% 58% 60% 60% 78% Transaction value 34% 43% 35% 35% 38% 38% 56% Number of accounts for previous years have been reclassified in line with definition introduced in FY2017/18 1Q. Net & Call and Home Trade were merged in January 2018 to form Online Services which started providing new services. Ratio of cash stocks traded via former Home trade. From FY2017/18 4Q, ratio of cash stocks traded via Online Services. 27
Table of Contents
Asset Management related data (1) Full year Quarter FY2016/17 FY2017/18 FY2016/17 FY2017/18 QoQ YoY (billions of yen) 4Q 1Q 2Q 3Q 4Q Net revenue 99.4 127.3 23.3 28.1 35.4 36.5 27.3 -25.2% 17.2% Non-interest expenses 57.1 61.2 14.6 14.5 15.0 15.7 16.0 2.2% 9.4% Income before income taxes 42.3 66.2 8.7 13.6 20.5 20.8 11.3 -45.8% 30.3% Assets under management by company (trillions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Nomura Asset Management 47.4 52.4 47.4 48.9 50.7 53.3 52.4 Nomura Funds Research and Technologies 2.8 2.8 2.8 2.9 2.9 2.9 2.8 Nomura Corporate Research and Asset Management 2.4 2.7 2.4 2.6 2.8 2.8 2.7 Assets under management (gross) 1 52.6 57.8 52.6 54.4 56.4 59.1 57.8 Group company overlap 8.3 7.8 8.3 8.4 8.4 8.3 7.8 Assets under management (net) 2 44.4 50.0 44.4 46.1 48.0 50.7 50.0 1. Total assets under management for Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management, and Wealth Square. 28 2. Net after deducting duplications from assets under management (gross).
Table of Contents
Asset Management related data (2) Asset inflows/outflows by business1 Full year Quarter FY2016/17 FY2017/18 (billions of yen) FY2016/17 FY2017/18 4Q 1Q 2Q 3Q 4Q Investment trusts business 1,590 3,131 969 316 886 773 1,156 of which ETFs 1,934 3,022 1,203 183 906 193 1,740 Investment advisory business 584 203 315 -86 96 -55 248 Total net asset inflow 2,174 3,334 1,284 230 982 718 1,404 Domestic public investment trust market and Nomura Asset Management market share2 (trillions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Domestic public stock investment trusts Market 85.9 96.9 85.9 88.0 92.1 97.4 96.9 Nomura Asset Management share (%) 23% 25% 23% 24% 24% 25% 25% Domestic public bond investment trusts Market 12.8 12.3 12.8 13.4 13.1 13.8 12.3 Nomura Asset Management share (%) 44% 44% 44% 43% 42% 44% 44% ETF Market 23.3 32.5 23.3 24.8 27.5 30.8 32.5 Nomura Asset Management share (%) 45% 46% 45% 45% 45% 45% 46% 1. Based on assets under management (net). 2. Source Investment Trusts Association, Japan. 29
Table of Contents
Wholesale related data Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 QoQ YoY 4Q 1Q 2Q 3Q 4Q Net revenue 739.3 715.3 171.2 179.3 159.0 165.6 211.4 27.6% 23.5% Non-interest expenses 577.8 614.7 143.1 154.0 142.0 151.6 167.2 10.3% 16.9% Income before income taxes 161.4 100.6 28.1 25.4 17.0 14.0 44.2 3.1x 57.2% Breakdown of Wholesale revenues Full year Quarter (billions of yen) FY2016/17 FY2017/18 FY2016/17 FY2017/18 QoQ YoY 4Q 1Q 2Q 3Q 4Q Fixed Income 411.3 352.1 86.5 95.7 78.3 79.4 98.8 24.6% 14.3% Equities 231.9 261.2 57.0 58.5 57.8 60.8 84.1 38.3% 47.4% Global Markets 643.1 613.4 143.5 154.2 136.1 140.2 182.9 30.5% 27.5% Investment Banking 96.1 102.0 27.7 25.1 22.9 25.5 28.5 11.8% 3.0% Net revenue 739.3 715.3 171.2 179.3 159.0 165.6 211.4 27.6% 23.5% Investment Banking (gross) 167.8 179.1 50.2 45.4 43.5 38.9 51.4 32.2% 2.3% 30
Table of Contents
Number of employees FY2016/17 FY2017/18 FY2016/17 FY2017/18 Mar Mar Mar Jun Sep Dec Mar Japan 16,227 15,819 16,227 16,903 16,706 16,583 15,819 Europe 3,026 3,057 3,026 3,013 3,047 3,054 3,057 Americas 2,314 2,362 2,314 2,325 2,348 2,349 2,362 Asia and Oceania1 6,619 6,810 6,619 6,673 6,756 6,786 6,810 Total 28,186 28,048 28,186 28,914 28,857 28,772 28,048 31 Includes Powai office in India.
Table of Contents
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.
Table of Contents
Nomura Holdings, Inc. www.nomura.com