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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 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):
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Information furnished on this form:
Exhibit Number
| 1. | Consolidated Results of Operations (US GAAP), Third 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: February 9, 2018 | By: | /s/ Hajime Ikeda | ||
| Hajime Ikeda | ||||
| Senior Managing Director | ||||
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Consolidated Results of Operations Third quarter, year ending March 2018 (US GAAP) Nomura Holdings, Inc. February 2018 Connecting Markets East & West © 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)—Segment “Other” (p. 22) Robust financial position (p. 13)—Retail related data (p. 23-26) Funding and liquidity (p. 14)—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 Highlights-income1 FY2017/18 1Q 3Q Income before income taxes: Y281.2bn (+17% YoY); Net income1: Y196.7bn (+10%); ROE 2: 9.3%; EPS3: Y55.12 Retail and Asset Management reported stronger income before income taxes on the back of the stock market rally Segment Other income before income taxes increased due to disposal of non-core assets and progress of our booking entity strategy FY2017/18 3Q Income before income taxes: Y120.8bn (+45% QoQ); net income1: Y88.0bn (+70%); ROE2: 12.4%; EPS3: Y25.12 Three segment income before income taxes up QoQ as Retail offset a decline in Wholesale Progress in winding up of EMEA booking entity; Recognized income from FX translation adjustment (approx. Y45bn) Three segment income before income taxes of Y66.2bn (+5% QoQ) Retail Firm-wide-(billions of yen) -Income before income taxes- -Net income120.8 -95.9 -81.8-82.3-83.0-88.0 -77.4—61.2-70.3 62.861.3-56.9—51.9 46.8- -FY2016/17FY2017/18- 1Q-2Q-3Q-4Q-1Q-2Q-3Q Three segment income before income taxes Wholesale Net revenue and income before income taxes both up QoQ; Strong performance in stock trading driven by market rally; Discretionary investments and insurance products also had a stronger quarter Asset Management Inflows and market factors lifted assets under management to record high Gains related to American Century Investments also contributed to highest quarterly income before income taxes since FY2001/02 Wholesale Equities in Japan and the Americas and Investment Banking booked stronger revenues QoQ 67.5-61.1 -Asset Management 87.4-Retail—62.6-63.8-63.0-66.2 -Income before income taxes down QoQ due to bonus provisions in line with performance and higher -commissions and floor brokerage and business development expenses 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. -FY2016/17FY2017/18- 1Q-2Q-3Q-4Q-1Q-2Q-3Q 2
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Overview of results Highlights (billions of yen, except EPS and ROE)—FY2017/18 -3Q Net revenue-406.6 Non-interest expenses-285.9 Income before income taxes-120.8 Net income1-88.0 EPS2-Y25.12 ROE3-12.4% QoQ-YoY +16%-+10% +6%-+5% +45%-+26% +70%-+25% +74%-+29% FY2017/18 1-3Q 1,118.9 837.7 281.2 196.7 Y55.12 9.3% YoY +6% +3% +17% +10% +13% Net income attributable to Nomura Holdings shareholders. Diluted net income attributable to Nomura Holdings shareholders per share. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 3
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Business segment results Net revenue and income before income taxes (billions of yen) Net revenue Income before income taxes -FY2017/18FY2017/18—QoQ-YoY-YoY -3Q1-3Q- Retail-111.3-+9%-+10%-314.8-+16% Asset Management-36.5-+3%-+26%-100.0-+31% Wholesale-165.6-+4%-16%-503.9-11% Subtotal-313.4-+6%-4%-918.7-+0.4% Other *-89.0-+69%-3.1x-193.3-+50% Unrealized gain (loss) on investments in- equity securities held for operating purposes-4.2-+53%-67%-6.9-27% Net revenue-406.6-+16%-+10%-1,118.9-+6% Retail-31.3-+22%-+21%-81.7-+67% Asset Management-20.8-+2%-+49%-54.9-+63% Wholesale-14.0-17%-70%-56.4-58% Subtotal-66.2-+5%-24%-193.0-11% Other *-50.4-+191%81.4-5.4x Unrealized gain (loss) on investments in- equity securities held for operating purposes-4.2-+53%-67%-6.9-27% Income before income taxes-120.8-+45%-+26%-281.2-+17% *Additional information on “Other” (3Q)-Progress in winding up of EMEA subsidiary, Nomura Capital Markets Limited; booked income from FX translation adjustments -(approx. Y45bn) -Gain on changes to own and counterparty credit spreads relating to derivatives (Y2.9bn) 4
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Retail Net revenue and income before income taxes1 (billions of yen)—FY2016/17-FY2017/18 QoQ-YoY -3Q-4Q-1Q-2Q-3Q- Net revenue-101.3-103.2-101.7-101.8-111.3-+9%-+10% Non-interest expenses-75.4-77.4-76.8-76.2-80.0-+5%-+6% Key points Net revenue: Y111.3bn (+9% QoQ; +10% YoY) Income before income taxes: Y31.3bn (+22% QoQ; +21% YoY) Both net revenue and income before income taxes up QoQ and YoY Strong performance in stocks amid market rally Continued to meet with clients to make proposals tailored to their needs; Increase in discretionary investments and insurance products Retail client assets at record high of Y122.8trn Income before income taxes-25.9-25.8-24.9-25.5-31.3-+22%-+21% Total sales4 Client franchise Retail client assets1 Accounts with balance NISA accounts opened (accumulated)2 Net inflows of cash and securities3 Dec / 3Q Sep / 2Q Y122.8trn Y115.2trn 5.33m 5.33m 1.61m 1.62m -Y14.0bn -Y77.8bn (billions of yen) Stocks Bonds Investment trusts Discretionary investments, Insurance products 4,000 3,000 2,000 1,000 0 -FY2016/17FY2017/18—3Q-4Q-1Q-2Q-3Q Total sales4 up 13% QoQ Stocks: +18% QoQ Higher trading of Japan and international stocks Sales of primary stocks declined from last quarter which included a large offering (subscriptions5: Y70.4bn; -78% QoQ) Investment trusts: +3% QoQ Inflows into products investing in high growth potential areas and low risk assets Bonds: Y493.6bn; -5% QoQ Sales of JGBs for individual investors up QoQ, while sales of foreign bonds declined Sales of discretionary investments and insurance products increased 79% QoQ 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from FY2017/18 3Q.-2. Including Junior NISA.-5 3. Cash and securities inflows minus outflows, excluding regional financial institutions.-4. Retail channels only.-5. Retail channels, Net & Call, and Hotto Direct.-
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Retail: Client assets and recurring revenue on the rise Recurring revenue (billions of yen)-Recurring revenue (annualized, adjusted basis)—Recurring revenue cost coverage ratio (rhs)- 26%-28%-28%- 100.0-25%-25%-30% 80.0 20% 60.0 -78.6-80.9-84.4-89.2—74.0-10% 40.0 20.00% -FY2016/17-FY2017/18—3Q-4Q-1Q-2Q-3Q- Annualized recurring revenue grew to Y89.2bn Although redemptions of mainly Japan stock funds increased due to the market rally, client assets in investment trusts and discretionary investments increased QoQ due in part to discretionary investment net inflows and market factors -Dec / 3Q-Sep / 2Q Recurring revenue-Y22.5bn-Y21.3bn Investment trust net inflows1-Y62.4bn-Y19.7bn Discretionary investment net inflows1-Y79.4bn-Y27.6bn Sales of insurance products2-Y56.0bn-Y39.3bn Investment trust and discretionary investment AuM-Inflows of cash and securities (Retail channel) (trillions of yen)-Discretionary investment-(billions of yen) Stock investment trusts + Foreign investment trusts 15.0-1,500 -1,211 -2.4-2.4-2.5-2.6-2.71,120-1,128- 10.01,000-939-923- 5.0-10.0-10.1-10.3-10.6-10.8-500- 0.00—FY2016/17-FY2017/18FY2016/17-FY2017/18—Dec-Mar-Jun-Sep-Dec-3Q-4Q-1Q-2Q-3Q 1. Retail channels and Japan Wealth Management Group. 6 Retail channels only.
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Asset Management Net revenue and income before income taxes Key points (billions of yen)—FY2016/17-FY2017/18 QoQ-YoY -3Q-4Q-1Q-2Q-3Q- Net revenue-28.9-23.3-28.1-35.4-36.5-+3%-+26% Non-interest expenses-14.9-14.6-14.5-15.0-15.7-+5%-+5% Income before income taxes-14.0-8.7-13.6-20.5-20.8-+2%-+49% Assets under management (net)1 (trillions of yen)-Investment trust business-Investment advisory business -50.7 43.2-44.4-46.1-48.0—16.4 14.6-14.8-15.3-15.9- 28.6-29.5-30.8-32.1-34.3 FY2016/17-FY2017/18- Dec-Mar-Jun-Sep-Dec Net revenue: Y36.5bn (+3% QoQ; +26% YoY) Income before income taxes: Y20.8bn (+2% QoQ; +49% YoY) Market factors combined with inflows into ETFs and other funds helped lift assets under management to a record high for fifth straight quarter Higher asset management fees and gains related to American Century Investments also contributed to strongest income before income taxes since FY2001/02 Investment trust business Inflows into ETFs, privately placed funds for regional financial institutions, and funds distributed via banks Inflows into publicly offered stock funds (excl. ETFs) into bond funds that deliver stable performance Top publicly offered stock funds (excl. ETFs) by inflows in 3Q- Nomura PIMCO World Income Strategy Fund Course A:-Y183.8bn Nomura India Investment Fund:-Y54.8bn Nomura Fund Wrap Bond Premier:-Y41.2bn Investment advisory and international businesses Slight outflows from public and private pension funds in Japan International business also reported outflows, but funds flowed into UCITS2 funds, mainly in India stock funds 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 Square-7 2. Undertakings for Collective Investment in Transferable Securities (UCITS) is the main European framework covering collective investment schemes investing in transferable securities.-
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Asset Management: Investment diversification with ETFs Flow of funds1 (billions of yen)—Investment trust business-Investment advisory business 1,500-1,284 -1,132—315-982- 1,000-95-96-718 500-1,038-969-230-886-773 316- 0—8655 -500—FY2016/17-FY2017/18—3Q-4Q-1Q-2Q-3Q Flow of funds in investment trust business1- (billions of yen)- Nomura Asset Management public investment trust market share2 28.0% 26.9% 26.4% 26.2% 26.0%-25.7% -25.4%- 24.0%—FY2016/17-FY2017/18—Dec-Mar-Jun-Sep-Dec ETF growth and build out of product lineup -MRFs, etc.—Investment trust businessETF -Other investment trusts (excl. ETFs)- 1,500-(excl. ETFs) 1,203 1,000-906—759- 500279 -183-580-193 132 019—233 -500 FY2016/17-FY2017/18—3Q-4Q-1Q-2Q-3Q Continued inflows has led to nearly 50% increase in ETF AuM over past year In December 2017, we listed six ETFs on Tokyo Stock Exchange including the first Japan fixed income ETF, foreign equity, foreign fixed income, and foreign REIT ETFs to provide diversification for investing key assets required to build portfolios -ETF AuM- (trillions of yen)-13.8 -12.5—11.3- 10.5- 9.3- Dec-Mar-Jun-Sep-Dec 2016-2017- 1. Based on assets under management (net). 2. Source: The Investment Trusts Association, Japan. 8
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Wholesale Net revenue and income before income expenses Key points (billions of yen)—FY2016/17-FY2017/18 QoQ-YoY -3Q-4Q-1Q-2Q-3Q- Global Markets-173.0-143.5-154.2-136.1-140.2-+3%-19% Investment Banking-24.2-27.7-25.1-22.9-25.5-+11%-+5% Net revenue-197.3-171.2-179.3-159.0-165.6-+4%-16% Non-interest expenses-149.9-143.1-154.0-142.0-151.6-+7%-+1% Income before income taxes-47.4-28.1-25.4-17.0-14.0-17%-70% Net revenue by region (billions of yen) 200.0 -64.8- 150.0-53.3-55.3Americas -48.3-53.2—39.6-EMEA 100.0-49.4-44.4-30.8-27.6—34.3-18.5-AEJ -17.7-22.9-24.3- 50.0 -58.6-50.8-56.7-55.6-66.4-Japan 0.0 -FY2016/17-FY2017/18—3Q-4Q-1Q-2Q-3Q- Net revenue: Y165.6bn (+4% QoQ; -16% YoY) Income before income taxes: Y14.0bn (-17% QoQ; -70% YoY) Net revenue up QoQ Market rally drove strong performance in Equities in Japan and the Americas, while Fixed Income remained roughly unchanged QoQ Investment Banking booked higher revenues in Japan and AEJ Unrealized loss related to a margin loan (approx. Y14bn; EMEA and AEJ approx. Y7bn each) Income before income taxes declined QoQ due to bonus provisions in line with performance and higher commissions and floor brokerage and business development expenses Net revenue by region (QoQ; YoY) Japan: Y66.4bn (+19%; +13%) Equities revenues at highest level in 10 quarters Investment Banking revenues also up on contributions from M&A Americas: Y53.2bn (+10%; -18%) Uptick in client activity drove solid performance in Equities EMEA: Y27.6bn (-10%; -30%), AEJ: Y18.5bn (-24%; -46%) Revenues declined due to an unrealized loss related to a margin loan In EMEA Fixed Income, Rates and Credit performance improved In AEJ, Investment Banking revenues increased on contribution from completion of M&A transaction and other factors 9
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Wholesale: Global Markets Net revenue FY2017/18 3Q net revenue by region (billions of yen)-Equities—Fixed IncomeYoY-QoQ- 173.0-QoQGlobal Markets—+3%-Global—143.5-154.2-136.1-140.2Markets-Fixed-Equities 55.8-YoYIncome—58.5-19%—57.0-57.8-60.8-Americas 117.3EMEA -86.5-95.7-78.3-79.4- AEJ FY2016/17-FY2017/18 3Q-4Q-1Q-2Q-3Q-Japan Key points -0% ~ +5%-+5% ~ +15%-+15% ~ Net revenue: Y140.2bn (+3% QoQ; -19% YoY)-Americas: In Fixed Income, Credit slowed while Rates and Securitized Fixed Income markets remained challenging amid low volatility; Equities-Products both improved; Equities booked stronger revenues in both Cash and booked stronger revenues on back of market rally-Derivatives, driven by increased client activity Fixed Income-EMEA: Rates and Credit both improved QoQ Net revenue: Y79.4bn (+1% QoQ; -32% YoY)- Roughly flat QoQ as uptick in Rates and Securitized Products offset a-AEJ: Fixed Income slowed QoQ due to subdued performance in Credit and slowdown in Credit-despite pick up in Emerging Markets; Equities revenues declined due to an -unrealized loss of approximately Y7bn related to a margin loan Equities- Net revenue: Y60.8bn (+5% QoQ; +9% YoY)-Japan: Client revenues declined in Fixed Income, while Equities reported Revenues up QoQ on robust performance in both Derivatives and-robust performance in Derivatives and Cash Equities supported by pick up in Cash, particularly in Japan and the Americas-client activity -10
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Wholesale: Investment Banking Net revenue Investment Banking (gross)-(billions of yen) 41.7-50.2-45.4-43.5-38.9 1H announced deals 3Q announced deals Leveraging global structure, undertaking high-profile mandates Asia (Incl. Japan) Investment Banking—QoQ 27.7-+11% 24.2-25.1-25.5—22.9-YoY -+5% FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q Key points Chugoku Electric Euro-Yen CB (Y100bn) BFCM (France) Samurai Bond (Y127.1bn) Hitachi Kokusai Electric repurchase of stake held by Hitachi and sale to HKE Holdings (Y272.2bn) Rawson Group (Australia) sale to Daiwa House Australia ($315m) Kuroda Electric sale to MBK Partners (Y102.1bn) Hong Kong Nissin Foods Hong Kong IPO ($122m) Advisor for Bain Capital and Goldman Sachs sale of Carver Korea (South Korea) to Unilever(UK) ($2.7bn) Advisor for Toshiba sale of Toshiba Memory to a consortium led by Bain Capital Net revenue: Y25.5bn (+11% QoQ; +5% YoY) Gross revenue: Y38.9bn (-11% QoQ; -7% YoY) Despite stronger contribution from M&A and M&A related financing, revenues declined due to an unrealized loss related to a margin loan(gross: approx. Y14bn; net: approx. Y7bn) Japan M&A revenues increased and ECM revenues were robust driven by IPOs and high-profile financing mandates #1 on Japan ECM, DCM, and Japan-related M&A league tables1 International Revenue contributions from continued focus on M&A and M&A related financing DCM remained robust and we ranked #7 in global SSA league table2 EMEA Advisor and financing for CDPQ (Canada) acquisition of Sebia (France) (M&A: Undisclosed / ALF:1.0bn) Wind Tre (Italy) Refinancing (7.3bn) Japan Post Holdings Global PO (Y1.3trn) Advisor for FEMSA(Mexico) sale of Heineken shares (2.5bn) Aruhi Global IPO (Y24.9bn) Advisor and financing for Post Holdings (US) acquisition of Weetabix (UK) (M&A 1.4bn / ALF $2.2bn) (Y2trn) Americas Advisor and financing for CVC Capital (UK) acquisition of PDC Brands (US) (M&A: $1.4bn / ALF $825m) Caesars Resort Collection (US) Refinancing ($7.4bn) 1.-Source: Thomson Reuters; DCM (corporate debt, including self-funded); Jan Dec 2017. 2.-Source: Dealogic, Jan Dec 2017; SSA: Sovereigns, Supranationals, Agencies. 11
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Non-interest expenses Full year Quarter Key points (billions of yen) 1,500 1,230.5 Other 1,080.4 Business development 1,000 expenses Occupancy and related- depreciation Information processing- and communications-500- Commissions and floor- brokerage Compensation and benefits -0—FY2015/16 FY2016/17 Compensation and benefits-574.2-496.4 Commissions and floor brokerage-123.9-94.5 Inf ormation processing and communications-189.9-175.3 Occupancy and related depreciation-78.4-69.8 Business development expenses-35.9-35.1 Other-228.2-209.3 Total-1,230.5-1,080.4 (billions of yen) 400 266.8 283.4 268.5 285.9 300 -200 -100 -0 FY2016/17-FY2017/18—QoQ 3Q-4Q-1Q-2Q-3Q- 127.6-114.9-136.2-122.0-131.4-7.7% 23.0-24.5-23.8-25.2-25.3-0.0% 42.2-47.3-44.6-47.3-49.0-3.8% 16.9-17.9-17.1-17.2-16.8-2.3% 8.8-11.1-8.4-7.8-9.8-25.3% 54.2-51.1-53.3-48.9-53.6-9.6% 272.7-266.8-283.4-268.5-285.9-6.5% Non-interest expenses: Y285.9bn (+6% QoQ) Compensation and benefits (+8% QoQ) Bonus provisions in line with performance and higher deferred compensation expenses Information processing and communications (+4% QoQ) Increase in depreciation expenses Other (+10% QoQ) Increase mainly due to higher expenses at consolidated subsidiaries 12
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Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 -Mar 2017-Sep 2017-Dec 2017 Total assets-Y42.9trn-Y44.1trn-Y44.5trn Shareholders’ equity-Y2.8trn-Y2.8trn-Y2.8trn Gross leverage-15.4x-15.6x-15.7x Net leverage1-8.6x-9.0x-9.1x Level 3 assets2-Y0.4trn-Y0.4trn-Y0.5trn (net) Liquidity portfolio-Y5.0trn-Y4.9trn-Y4.9trn (billions of yen)-Mar-Sep-Dec2 Basel 3 basis-2017-2017-2017 Tier 1 capital-2,690-2,741-2,742 Tier 2 capital-110-93-85 Total capital-2,799-2,834-2,827 RWA-13,978-14,868-15,000 Tier 1 capital ratio-19.2%-18.4%-18.2% CET 1 capital ratio3-18.2%-17.4%-17.3% Consolidated capital-20.0%-19.0%-18.8% adequacy ratio Consolidated leverage ratio4-4.63%-4.57%-4.49% HQLA5-Y4.5trn-Y4.1trn-Y4.1trn LCR5-180.0%-179.7%-175.9% (trillions of yen)-RWA (Basel 3) (lhs)-CET1 capital ratio (Basel 3) (rhs)- 20.0-17.7%-18.2%-18.1%-17.4%-17.3%-17.0% 15.0 10.0 5.0 0.0Fully loaded -FY2016/17-FY2017/18-Basel 3 2019 applied to balance sheet -Dec-Mar-Jun-Sep-Dec-at end Dec (estimate) 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 800 600 -18%-17%-16%-16%-18% 400 200 0 -FY2016/17FY2017/18—Dec-Mar-Jun-Sep-Dec 20.0% 15.0% 10.0% 5.0% 0.0% 30% 20% 10% 0% 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. Dec 2017 is preliminary. 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. 13
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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: Y4.9trn, 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 December 2017) Assets Liabilities and equity Unsecured funding2 -Approx. 80% of unsecured funding is -long-term debt—Diversified sources of funding—Short-term debt -Trading liabilities-14% -Long-term debt due Trading assets-and related1-within 1yr, 7% and related1International- 26%-Loans—(incl.-Bank -subordinated)-lending -Long-termmarket -Other liabilities-debt, 79%-Euro MTN/Yen,—Average-retail bonds, etc.-Retail -Short-term borrowings-maturitymarket Japan- Cash and cash deposits-Long-term-5.5 years3-74%-Euro—borrowings- Other assets-MTN/Other,-Wholesale -Total equitywholesale-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.-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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Financial Supplement Nomura
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Consolidated balance sheet (billions of yen)-Mar 31,-Dec 31,-Increase-Mar 31,-Dec 31,-Increase -2017-2017-(Decrease)-2017-2017-(Decrease) Assets-Liabilities Total cash and cash deposits-2,972-2,838-134-Short-term borrowings-543-688-145 -Total payables and deposits-3,708-3,917-208 Total loans and receivables-3,097-3,703-606-Total collateralized financing-19,061-19,306-245 -Trading liabilities-8,192-8,842-650 Total collateralized agreements-18,730-18,554-176-Other liabilities-1,309-1,144-164 -Long-term borrowings-7,195-7,677-481 Total trading assets1 and private-15,192-16,710-1,518-Total liabilities-40,008-41,574-1,566 equity investments- Total other assets-2,860-2,674-186-Equity -Total NHI shareholders’ equity-2,790-2,842-52 -Noncontrolling interest-54-64-10 Total assets-42,852-44,480-1,628-Total liabilities and equity-42,852-44,480-1,628 1. Including securities pledged as collateral.-16
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Value at risk Definition-From April 1, 2017, to December 31, 2017 (billions of yen) 99% confidence level-Maximum:-5.3 1-day time horizon for outstanding portfolio-Minimum:-3.0 Inter-product price fluctuations considered-Average:-3.8 (billions of yen)-FY2015/16-FY2016/17 -Mar-Mar Equity-0.9-0.7 Interest rate-3.8-2.7 Foreign exchange-0.8-1.7 Sub-total-5.5-5.0 Diversification benefit-2.0-1.7 VaR-3.5-3.3 FY2016/17FY2017/18- Dec-Mar-Jun-Sep-Dec 1.4-0.7-0.9-0.8-1.2 2.9-2.7-2.5-3.0-2.7 3.7-1.7-1.8-2.1-2.6 8.0-5.0-5.2-5.9-6.5 -3.1-1.71.7-1.7-1.3 4.9-3.3-3.5-4.3-5.2 17
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Consolidated financial highlights Full year Quarter (billions-of yen)- 300-8.7% Net income- attributable to- Nomura Holdings, 200- Inc. (‘‘NHI’’)- shareholders-4.9%- ROE(%)-239.6 100—131.6- 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 1. Quarterly ROE is calculated using annualized year-to-date net income. (billions of yen) 10%-100-8.6%-8.7%9.3%-10% -8.1%-7.7%- 8%-808% 6%-606% 88.0- 4%-404% -70.3- 61.3-56.9-51.9- 2%-202% 0%-00% -FY2016/17-FY2017/18—3Q-4Q-1Q-2Q-3Q—368.6-349.1-360.8-351.5-406.6—95.9-82.3-77.4-83.0-120.8—70.3-61.3-56.9-51.9-88.0—2,807.2-2,789.9-2,847.0-2,836.2-2,841.7—8.6%-8.7%-8.1%-7.7%-9.3%—19.89-17.38-16.07-14.70-25.55—19.44-17.00-15.77-14.45-25.12—796.79-790.70-802.63-813.57-835.72- 18
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Consolidated income Full year Quarter (billions of yen)-FY2015/16-FY2016/17 Revenue- Commissions-432.0-327.1 Fees from investment banking-118.3-92.6 Asset management and portfolio service fees-229.0-216.5 Net gain on trading-354.0-475.6 Gain (loss) on private equity investments-13.8-1.4 Interest and dividends-440.1-441.0 Gain (loss) on investments in equity securities-20.5-7.7 Other-156.5-153.6 Total revenue-1,723.1-1,715.5 Interest expense-327.4-312.3 Net revenue-1,395.7-1,403.2 Non-interest expenses-1,230.5-1,080.4 Income before income taxes-165.2-322.8 Net income attributable to NHI shareholders-131.6-239.6 FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q 86.3-90.0-91.0-85.3-101.7 23.7-28.2-22.7-27.1-29.3 55.1-56.6-58.3-61.2-63.8 108.4-108.3-120.5-88.4-87.7 0.6-1.2-0.4-0.3-2.4 117.4-108.2-134.4-141.6-161.4 12.9-2.8-0.1-3.1-4.5 39.5-37.4-40.6-56.0-84.6 443.9-427.1-467.9-462.4-530.6 75.2-78.0-107.1-110.9-124.0 368.6-349.1-360.8-351.5-406.6 272.7-266.8-283.4-268.5-285.9 95.9-82.3-77.4-83.0-120.8 70.3-61.3-56.9-51.9-88.0 19
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Main revenue items Full year Quarter Commissions Fees from investment banking Asset management and portfolio service fees (billions of yen)-FY2015/16-FY2016/17 Stock brokerage commissions-275.0-210.0 Other brokerage commissions-23.3-15.1 Commissions for distribution of investment trusts-89.5-75.1 Other-44.2-26.9 Total-432.0-327.1 Equity underwriting and distribution-56.7-22.4 Bond underwriting and distribution-12.9-16.9 M&A / Financial advisory fees-33.1-34.4 Other-15.6-18.9 Total-118.3-92.6 Asset management fees-164.4-148.7 Administration fees-45.7-50.2 Custodial fees-19.0-17.6 Total-229.0-216.5 FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q 57.5-57.1-57.0-54.6-68.4 4.3-3.0-3.4-3.2-4.3 19.1-22.6-23.2-20.9-22.1 5.4-7.3-7.3-6.6-6.9 86.3-90.0-91.0-85.3-101.7 5.8-6.9-3.5-10.5-5.2 4.2-6.6-3.6-4.4-4.9 9.6-5.7-8.3-8.2-13.7 4.1-9.0-7.3-4.0-5.5 23.7-28.2-22.7-27.1-29.3 38.0-39.0-39.9-42.5-43.9 12.8-13.1-14.0-14.3-15.5 4.3-4.5-4.4-4.4-4.3 55.1-56.6-58.3-61.2-63.8 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 (billions of yen)-FY2015/16-FY2016/17 Retail1-127.6-74.8 Asset Management-36.7-42.3 Wholesale-15.4-161.4 Three business segments total-179.7-278.6 Other-6.1-37.6 Segments total-185.8-316.2 Unrealized gain (loss) on investments-in equity- securities held for operating purposes20.7-6.6 Income (loss) before income taxes-165.2-322.8 FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q 25.9-25.8-24.9-25.5-31.3 14.0-8.7-13.6-20.5-20.8 47.4-28.1-25.4-17.0-14.0 87.4-62.6-63.8-63.0-66.2 -3.8-22.6-13.6-17.3-50.4 83.5-85.1-77.4-80.3-116.6 12.4-2.8-0.0-2.7-4.2 95.9-82.3-77.4-83.0-120.8 Geographic information: Income (loss) before income taxes2 -Full year-Quarter- (billions of yen)-FY2015/16-FY2016/17-FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q Americas-32.0-50.0-17.4-10.4-7.9-1.5-10.8 Europe-67.4-14.4-2.1-8.8-2.2-1.4-16.5 Asia and Oceania-19.8-23.7-11.9-2.5-5.3-3.7-7.4 Subtotal-79.6-88.1-31.4-16.7-15.5-0.9-1.7 Japan-244.8-234.7-64.6-65.6-62.0-82.2-119.1 Income (loss) before income taxes-165.2-322.8-95.9-82.3-77.4-83.0-120.8 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from FY2017/18-3Q.- 2. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended December-31, 2017). Nomura’s revenues and expenses are allocated based on the country of domicile of the-21 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) 60.0 50.4 50.0 40.0-37.6- 30.022.6 20.0-17.3—13.6- 6.1 0.0—10.0-3.8—1-2-1-2-3-4-5 FY2016/17-FY2017/18—FY2015/16 FY2016/17- 3Q-4Q-1Q-2Q-3Q Net gain (loss) related to economic-6.4-7.3-15.9-0.8-0.7-0.6-8.0 hedging transactions- Realized gain (loss) on investments in equity-0.2-1.1-0.4-0.0-0.0-0.3-0.4 securities held for operating purposes- Equity in earnings of affiliates-32.7-32.3-11.0-9.4-7.0-8.4-7.8 Corporate items-52.3-6.4-0.8-3.9-0.2-1.6-3.4 Others-19.2-17.9-1.5-8.5-7.0-6.4-53.7 Income (loss) before income taxes-6.1-37.6-3.8-22.6-13.6-17.3-50.4 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- 3Q-4Q-1Q-2Q-3Q Commissions-220.3-171.8-47.1-47.5-47.3-43.8-54.1-23.7%-15.0%- Of which, stock brokerage commission-78.9-62.8-19.8-17.6-18.0-17.2-25.4-47.7%-28.4%- Of which, commissions for distribution of investment trusts-93.6-82.3-21.1-23.6-23.7-21.3-22.6-6.0%-7.3%- Sales credit-86.4-85.3-23.0-23.8-24.5-25.7-23.8-7.6%-3.4%- Fees from investment banking and other-35.9-27.3-8.4-8.7-5.8-7.5-6.6-11.9%-21.4%- Investment trust administration fees and other-85.3-81.8-20.6-21.3-22.3-23.0-24.2-5.1%-17.6%- Net interest revenue-7.8-8.3-2.3-1.9-1.8-1.8-2.6-43.1%-11.4%- Net revenue1-435.6-374.4-101.3-103.2-101.7-101.8-111.3-9.3%-9.8%- Non-interest expenses1-308.0-299.6-75.4-77.4-76.8-76.2-80.0-4.9%-6.1%- Income before income taxes1-127.6-74.8-25.9-25.8-24.9-25.5-31.3-22.5%-20.6%- Domestic distribution volume of investment trusts 2-5,644.9-3,376.3-908.2-912.2-944.0-886.0-905.3-2.2%-0.3%- Bond investment trusts-1,094.0-0.2-0.0-0.0-0.0-0.0-0.0- Stock investment trusts-3,656.3-2,955.3-801.6-826.2-860.5-790.8-820.6-3.8%-2.4%- Foreign investment trusts-894.6-420.8-106.5-86.0-83.5-95.2-84.7-11.0%-20.5%- Other- Accumulated value of annuity insurance policies-2,806.4-2,941.5-2,912.7-2,941.5-2,975.3-3,006.2-3,057.6-1.7%-5.0%- Sales of JGBs for individual investors (transaction base)-425.9-1,129.9-277.5-602.8-89.1-120.2-194.6-62.0%-29.8%- Retail foreign currency bond sales-1,205.0-1,131.2-407.7-293.6-328.0-349.9-253.7-27.5%-37.8%- 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from FY2017/18 3Q.-23 2. Excluding Net & Call and Hotto Direct.-
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Retail related data (2) Retail client assets1 (trillions of yen) Other-140—120- Foreign investment107.7 -100.6- trusts-100- Bond investment trusts-80- Stock investment trusts-60- Domestic bonds -40- Foreign currency bonds-20- Equities -0—FY2015/16-FY2016/17 -Mar-Mar Equities-60.2-66.3 Foreign currency bonds-5.6-6.0 Domestic bonds2-11.7-11.7 Stock investment trusts-8.6-8.8 Bond investment trusts-7.3-7.3 Foreign investment trusts-1.4-1.3 Other3-5.8-6.4 Total-100.6-107.7 122.8 -111.9-115.2 108.0-107.7- FY2016/17-FY2017/18- Dec-Mar-Jun-Sep-Dec 66.7-66.3-69.9-72.4-79.2 6.0-6.0-6.1-6.4-6.2 11.5-11.7-11.5-11.6-11.8 8.7-8.8-9.1-9.3-9.5 7.6-7.3-7.6-7.5-7.9 1.3-1.3-1.3-1.3-1.3 6.2-6.4-6.4-6.7-6.9 108.0-107.7-111.9-115.2-122.8 1. Capital Nomura Securities in Thailand and BDO Nomura Securities in Philippines were included from December 31, 2017.-24 2. Including CBs and warrants.-3. Including annuity insurance.-
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Retail related data (3) Net inflows of cash and securities1 Full year (billions of yen) 1,000 500 48 0 -306 -500 FY2015/16 FY2016/17 Quarter (billions of yen) 1,000 500 0 14 -115-78- -43 -338 -500 -FY2016/17FY2017/18- 3Q-4Q-1Q-2Q-3Q 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 -Mar-Mar Accounts with balance-5,389-5,363 Equity holding accounts-2,827-2,836 Nomura Home Trade1 /-4,350-4,456 Net & Call accounts- FY2016/17-FY2017/18- Dec-Mar-Jun-Sep-Dec 5,383-5,363-5,342-5,328-5,326 2,839-2,836-2,821-2,832-2,800 4,427-4,456-4,361-4,295-4,339 New Individual accounts / IT share2 Full year Quarter (thousands)-FY2015/16-FY2016/17 New individual accounts-336-231 IT share2- No. of orders-58%-57% Transaction value-36%-34% FY2016/17-FY2017/18- 3Q-4Q-1Q-2Q-3Q—55-65-52-53-60 -56%-57%-58%-60%-60% -33%-35%-35%-38%-38% 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 (billions of yen)-FY2015/16-FY2016/17 Net revenue-95.4-99.4 Non-interest expenses-58.7-57.1 Income before income taxes-36.7-42.3 FY2016/17-FY2017/18 -QoQ-YoY 3Q-4Q-1Q-2Q-3Q- 28.9-23.3-28.1-35.4-36.5-3.1%-26.3% 14.9-14.6-14.5-15.0-15.7-4.8%-5.0% 14.0-8.7-13.6-20.5-20.8-1.8%-48.9% Assets under management by company (trillions of yen)-FY2015/16-FY2016/17-FY2016/17-FY2017/18—Mar-Mar-Dec-Mar-Jun-Sep-Dec- Nomura Asset Management-43.5-47.4-46.3-47.4-48.9-50.7-53.3- Nomura Funds Research and Technologies-3.1-2.8-2.9-2.8-2.9-2.9-2.9- Nomura Corporate Research and Asset Management-1.6-2.4-2.1-2.4-2.6-2.8-2.8- Assets under management (gross) 1-48.2-52.6-51.4-52.6-54.4-56.4-59.1- Group company overlap-8.1-8.3-8.2-8.3-8.4-8.4-8.3- Assets under management (net) 2-40.1-44.4-43.2-44.4-46.1-48.0-50.7- 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 3Q-4Q-1Q-2Q-3Q- Investment trusts business-2,717-1,590-1,038-969-316-886-773 of which ETFs-2,339-1,934 Investment advisory business-2,038-584 Total net asset inflow-4,755-2,174 279-1,203-183-906-193 95-315-86-96-55 1,132-1,284-230-982-718 Domestic public investment trust market and Nomura Asset Management market share2 (trillions of yen)-FY2015/16-FY2016/17-FY2016/17-FY2017/18 -Mar-Mar-Dec-Mar-Jun-Sep-Dec- Domestic public stock investment trusts Market-78.6-85.9-83.0-85.9-88.0-92.1-97.4- Nomura Asset Management share (%)-21%-23%-22%-23%-24%-24%-25%- Domestic public bond investment trusts Market-13.9-12.8-13.6-12.8-13.4-13.1-13.8- Nomura Asset Management share (%)-46%-44%-44%-44%-43%-42%-44%- ETF Market-15.8-23.3-20.3-23.3-24.8-27.5-30.8- Nomura Asset Management share (%)-48%-45%-46%-45%-45%-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)-FY2015/16-FY2016/17 Net revenue-720.3-739.3 Non-interest expenses-704.9-577.8 Income before income taxes-15.4-161.4 FY2016/17-FY2017/18-QoQ-YoY 3Q-4Q-1Q-2Q-3Q- 197.3-171.2-179.3-159.0-165.6-4.2%-16.0% 149.9-143.1-154.0-142.0-151.6-6.8%-1.2% 47.4-28.1-25.4-17.0-14.0-17.3%-70.4% Breakdown of Wholesale revenues Full year Quarter (billions of yen)-FY2015/16-FY2016/17 Fixed Income-275.2-411.3 Equities-325.1-231.9 Global Markets-600.3-643.1 Investment Banking1-120.0-96.1 Net revenue-720.3-739.3 Investment Banking (gross)1-205.7-167.8 FY2016/17-FY2017/18-QoQ-YoY 3Q-4Q-1Q-2Q-3Q- 117.3-86.5-95.7-78.3-79.4-1.4%-32.3% 55.8-57.0-58.5-57.8-60.8-5.2%-9.0% 173.0-143.5-154.2-136.1-140.2-3.0%-19.0% 24.2-27.7-25.1-22.9-25.5-11.2%-5.1% 197.3-171.2-179.3-159.0-165.6-4.2%-16.0% 41.7-50.2-45.4-43.5-38.9-10.7%-6.7% -29 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified in line with revised disclosure method from FY2016/17 2Q.-
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Number of employees -FY2015/16-FY2016/17-FY2016/17FY2017/18—Mar-Mar-Dec-Mar-Jun-Sep-Dec Japan-16,083-16,227-16,450-16,227-16,903-16,706-16,583 Europe-3,424-3,026 Americas-2,503-2,314 Asia and Oceania1-6,855-6,619 Total-28,865-28,186 3,063-3,026-3,013-3,047-3,054 2,279-2,314-2,325-2,348-2,349 6,606-6,619-6,673-6,756-6,786 28,398-28,186-28,914-28,857-28,772 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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Nomura Holdings, Inc. www.nomura.com