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FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 1-15270
For the month of August 2016
NOMURA HOLDINGS, INC.
(Translation of registrant’s name into English)
9-1, Nihonbashi 1-chome
Chuo-ku, Tokyo 103-8645
Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
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Information furnished on this form:
Exhibit Number
| 1. | Consolidated Results of Operations (US GAAP), First quarter, year ending March 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: August 4, 2016 | By: | /s/ Hajime Ikeda | ||
| Hajime Ikeda | ||||
| Senior Managing Director | ||||
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Connecting Markets East & West
Consolidated Results of Operations
First quarter, year ending March 2017
(US GAAP)
Nomura Holdings, Inc.
July 2016 © 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
FY2016/17 1Q highlights
Income before income taxes and net income both up strongly QoQ
Net revenue: Y338.5bn; Income before income taxes: Y62.8bn; Net income1: Y46.8bn; ROE2:
7.0%; EPS3: Y12.71
Income before income taxes from international businesses of Y16.9bn driven by significant
lowering of breakeven point
Three segment income before income taxes of Y67.5bn
- Solid results driven by Wholesale as client activity and trading conditions improved
Retail
Revenues were weak as choppy market conditions prompted retail investors to remain on the
sidelines
Focused on enhancing dialog with clients; Improved net inflows into discretionary investments and
investment trusts
Asset Management
Significantly stronger revenues QoQ from dividend income and realized gains from potential
liquidation of overseas entity
Income before income taxes at highest level since FY2007/08 2Q
Wholesale
Strong revenue growth QoQ as Fixed Income revenues increased across all regions and products
Cost reduction initiatives also contributed to marked improvement in income before income taxes
Shareholder returns
Launch of share buyback program to deliver shares upon the exercise of stock options and to
raise capital efficiency and ensure a flexible capital management policy
Total shares: Upper limit of 100 millionshares (2.6 percent of outstanding shares)
Total value: Upper limit of Y45bn
Period: From August 15, 2016, to January 27, 2017
(However, excluding from October 28, 2016, to November 11, 2016)
Net income (loss) attributable to Nomura Holdings shareholders.
Calculated using annualized net income attributable to Nomura Holdings shareholders for each period.
Diluted net income attributable to Nomura Holdings shareholders per share.
Income (loss) before income taxes and net
income (loss)1
Group (billions of yen) Income (loss) before income taxes 106.0 Net income (loss)
68.7 51.6 62.8
46.6
46.8
19.9 35.4
-12.3
-19.2
FY2015/16 FY2016/17
1Q 2Q 3Q 4Q 1Q
Three segment income (loss) before income taxes
Wholesale
82.3 Asset Management Retail
67.5 53.8 48.5
-4.9
FY2015/16 FY2016/17
1Q 2Q 3Q 4Q 1Q
2
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Overview of results
Highlights
(billions of yen, except EPS and ROE)
FY2016/17FY2015/16FY2015/16
QoQYoY
1Q4Q1Q
Net revenue 338.5280.1+21%424.0-20%
Non-interest expenses 275.7292.5-6%318.0-13%
Income (loss) before income
taxes 62.8-12.3-106.0-41%
Net income (loss)1 46.8-19.2-68.7-32%
EPS2 Y12.71-Y5.33-Y18.65-32%
ROE3 7.0%-10.0%
(1) Net income (loss) attributable to Nomura Holdings shareholders.
(2) Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 3
(3) Calculated using annualized net income attributable to Nomura Holdings shareholders for each period.
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Business segment results
Net revenue and income (loss) before income taxes
FY2016/17FY2015/16FY2015/16
(billions of yen) QoQYoY
1Q4Q1Q
Net revenue Retail 83.885.0-1%130.7-36%
Asset Management 25.920.3+28%26.9-4%
Wholesale 190.9136.2+40%205.2-7%
Subtotal 300.6241.5+24%362.8-17%
Other * 48.462.1-22%52.2-7%
Unrealized gain (loss) on investments in -10.5-23.5
equity securities held for operating purposes -9.0-
Net revenue 338.5280.1+21%424.0-20%
Income Retail 8.712.2-29%50.9-83%
(loss) before
income Asset Management 12.25.8+112%11.7+4%
taxes Wholesale 46.6-22.8-19.7+137%
Subtotal 67.5-4.9-82.3-18%
Other * 5.816.1-64%14.7-61%
Unrealized gain (loss) on investments in -10.5-23.5
equity securities held for operating purposes -9.0-
Income (loss) before income taxes 62.8-12.3-106.0-41%
*Additional information on _Other_ (1Q) 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 4
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)
FY2015/16FY2016
/17QoQYoY
1Q 2Q3Q4Q1Q
Net revenue 130.7 115.7104.385.083.8-1%-36%
Non-interest expenses 79.8 78.976.572.975.1+3%-6%
Income before income taxes 50.9 36.727.812.28.7-29%-83%
Total sales3
Key points
Net revenue: Y83.8bn (-1% QoQ; -36% YoY)
Income before income taxes: Y8.7bn (-29% QoQ; -83% YoY)
Revenues remained soft
Choppy market conditions prompted investors to remain on the sidelines
Investment trusts and discretionary investments up QoQ, but sales of
stocks declines
Client franchise Jun / 1Q Mar / 4Q Retail client assets Y95.3trn Y100.6trn Accounts with balance 5.39m 5.39m NISA account applications1 1.69m 1.67m Net inflows of cash and securities2 -Y243.1bn -Y43.0bn
(billions of yen)
Total sales3 declined 13% QoQ
Stocks
Bonds
Investment trusts
Discretionary investments, Insurance products
4,000 Stocks: -19% QoQ Contributions from domestic secondary stock sales and primary deals 3,000 slowed (primary stock subscriptions4: Y33.1bn, -56% QoQ) 2,000 Investment trusts: +24% QoQ Inflows into products investing in REITs and global bonds 1,000 Bonds: Y403.6bn, -30% QoQ Contributions from primary deals declined 0 Ongoing demand for JGBs for individuals under negative rate environment FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q Discretionary investment and insurance sales up 19% QoQ (1) Includes Junior NISA. (2) Cash and securities inflows minus outflows, excluding regional financial institutions. 5 (3) Retail channel only. (4) Retail channels, Net & Call, and Hotto Direct.
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Retail: Continued focus on providing consulting services Recurring revenue (billions of yen) Recurring revenue (annualized, adjusted basis) Annualized recurring revenue of Y71.3bn Recurring revenue cost coverage ratio (rhs) 100.0 30% Proactive dialog and discussions on discretionary investments with clients 24% 25% 25% 25% 24% Although AuM of investment trusts declined due to market factors, booked 80.0 steady net inflows into discretionary investments and investment trusts, 20% maintaining recurring revenue at same level as last quarter 60.0 78.0 78.3 76.8 10% Jun / 1Q Mar / 4Q 71.9 71.3 40.0 Recurring revenue Y17.8bn Y17.9bn Discretionary investment net inflows1 Y107.2bn Y51.7bn 20.0 0% Investment trust net inflows1 Y51.3bn Y8.7bn FY2015/16 FY2016/17 Sales of insurance products2 Y50.7bn Y72.3bn 1Q 2Q 3Q 4Q 1Q Proactive dialog with clients, discretionary investment net Discretionary investment assets under management inflows improved (billions of yen) (billions of yen) Quarterly discretionary investment net inflows1 Discretionary investment net No . of interview sheets (rhs) 2,500 2,164.4 2,193.8 2,201.0 inflows1 (lhs) 60,000 51.7 107.2 50,166 2,000 1,927.5 200.1 60.0 43,000 1,694.7 284.2 361.8 40,000 1,500 30,148 40.0 44.9 21,864 37.8 1,000 17,347 20,000 500 20.0 16,685 24.4 24.6 15.4 11.6 0 0.0 0 FY2015/16 FY2016/17 FY2015/16 4Q FY2016/17 1Q 1Q /Jun 2Q /Sep 3Q /Dec 4Q /Mar 1Q /Jun Jan Feb Mar Apr May Jun (1) Retail channels, Japan Wealth Management Group. 6 (2) Retail channels only.
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Asset Management
Net revenue and income before income taxes Key points
(billions of yen)
FY2015/16 FY2016 Net revenue: Y25.9bn (+28% QoQ; -4% YoY)
/17 QoQ YoY Income before income taxes: Y12.2bn (+112% QoQ; +4% YoY)
1Q 2Q 3Q 4Q 1Q Significantly stronger revenues QoQ from dividend income and realized
gains from potential liquidation of overseas entity
Net revenue 26.9 22.9 25.3 20.3 25.9 +28% -4% Expenses also declined and income before income taxes was at highest
level since FY2007/08 2Q
Non-interest expenses 15.2 14.4 14.6 14.5 13.7 -6% -10%
Investment trust business
Outflows from money market funds in view of redemptions of CRF3 and FFF4,
Income before income taxes 11.7 8.4 10.7 5.8 12.2 +112% +4% but continued inflows into privately placed funds for regional financial
institutions and investment trusts for discretionary investments
1Q inflows
Assets under management – Nomura US High Yield Bond Fund Y30.9bn
(trillions of yen) AuM (net)1 AuM (gross)2 – Nomura International Bond Index (For Nomura Investment Discretionary
Account): Y24.0bn
50.1 50.8 – Robo Japan: Y12.3bn
47.2 48.2
41.4 40.0 42.2 40.1 44.7
37.3
Investment advisory and international businesses
Japan reported outflows due to factors including a decline in funds managed
for public pension funds
Internationally, Japan equity products reported outflows, but US high yield
products continued to book inflows
NCRAM5 won mandate to manage US retail mutual fund managed by
Northern Trust Investments; Second non-Nomura mutual fund in the US that
FY2015/16 FY2016/17 NCRAM has been appointed to manage
Jun Sep Dec Mar Jun
(1) Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and T echnologies, Nomura Corporate Research and Asset Management and Nomura
Private Equity Capital. (2) Assets under management (gross) of above four companies. 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. 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, 7
2015, respectively, as well as all of the operations of Nomura Private Equity Capital on December 1, 2015.
(3) Nomura CRF (Cash Reserve Fund) (4) Free Financial Fund (5) Nomura Corporate Research and Asset Management
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Asset Management: Expanding business platform
Nomura Asset Management public investment trust market
Assets under management (net)1 by business share2
(trillions of yen)
Investment trust business Investment advisory business 26.0%
50.0 24.9% 24.9% 24.8%
41.4 40.0 42.2 40.1 24.6%
40.0 37.3 24.0%
12.8 13.2 14.2 13.4 24.0%
30.0 12.4
20.0
22.0%
10.0 28.6 26.8 28.0 26.7 24.9
0.0 20.0%
FY2015/16 FY2016/17 FY2015/16 FY2016/17
Jun Sep Dec Mar Jun Jun Sep Dec Mar Jun
Inflows into investment trust business3 Acquired stakes in American Century Investments
(billions of yen) MRFs, MMFs, etc.
Investment trust business ETF
1,500 (exc. ETFs) Other investment trusts (excl. ETFs) n Acquired approximately 41% economic interest (10.1% voting interest) in
1,294
944 American Century Investments on May 19, 2016
1,000 838 n Established ACI-NAM Business Opportunities Committee with Nomura
500 308 259 Asset Management and ACI CEOs serving as Co -Chairman to find
opportunities for business growth
0
-398 -102 -399 -24 n Several working groups have
-500 -427 been set up under the
-1,000 Committee to map out detailed
FY2015/16 FY2016/17 strategies
1Q 2Q 3Q 4Q 1Q
(1) Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and T echnologies, Nomura Corporate Research and Asset Management and Nomura
Private Equity Capital. 8
(2) Source: The Investment Trusts Association, Japan. (3) Based on net assets under management
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Wholesale
Net revenue and income (loss) before income taxes
(billions of yen)
FY2015/16 FY2016
/17 QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 176.2 158.7 157.2 108.3 170.5 +57% -3%
Investment Banking 29.0 34.2 28.8 27.9 20.4 -27% -30%
Net revenue 205.2 192.9 186.0 136.2 190.9 +40% -7%
Non-interest expenses 185.5 184.3 176.0 159.0 144.3 -9% -22%
Income (loss) before income 19.7 8.6 9.9 -22.8 46.6 - +137%
taxes
Net revenue by region
(billions of yen)
250.0
200.0
59.2 44.8 43.5 61.1 Americas
150.0
40.8 55.4 43.2 EMEA
100.0 45.4 40.8
31.5 26.4 27.1 23.7 21.4 AEJ
50.0 18.0 Japan
73.7 66.2 72.2 67.7
49.0
0.0
FY2015/16 FY2016/17
1Q 2Q 3Q 4Q 1Q
Key points
nNet revenue: Y190.9bn (+40% QoQ; -7% YoY) nIncome before income taxes: Y46.6bn (+137% YoY) nRevenues up significantly QoQ
- Fixed Income revenues grew across all regions and products on the back of an uptick in client activity and improved trading conditions nCost reduction initiatives also contributed to marked improvement in income before income taxes
Net revenue by region (QoQ; YoY) nJapan: Y67.7bn (+38%, -8%)
- Solid performance in Fixed Income driven by Rates and Credit
- Investment Banking revenues declined due to market turmoil and seasonal factors
nAmericas: Y61.1bn (+34%; +3%)
- Fixed Income revenues grew strongly driven by Rates; Equities revenues declined due to non-recurrence of gain booked from sale of equity stake last quarter
- Market conditions settled down and Spread Products performance improved
nEMEA: Y40.8bn (+72%; Unchanged)
- Fixed Income performance up driven by Rates
nAEJ: Y21.4bn (+19%; -32%)
- Improved performance in Credit and Emerging Market
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Wholesale: Global Markets
Net revenue
(billions of yen) Equities
Fixed Income
QoQ
176.2 170.5 +57%
158.7 157.2
YoY
92.1 108.3 62.6 -3%
75.5 76.9
80.7
107.9
84.1 83.2 80.2
27.6
FY2015/16 FY2016/17
1Q 2Q 3Q 4Q 1Q
Key points
Global Markets
Net revenue: Y170.5bn (+57% QoQ; -3% YoY)
?A solid quarter with strong performance in Fixed Income across all regions,
offsetting slowdown in Equities
Fixed Income
Net revenue: Y107.9bn (3.9x QoQ; +28% YoY)
Strong performance in Rates from increased client flows and market
opportunities
Improved performance in Credit and Securitized Products from
favorable macro environment and gradual return in client activity
Equities
Net revenue: Y62.6bn (-22% QoQ; -32% YoY)
Revenues declined as last quarter included a realized gain from sale of
Chi-X shares, client activity slowed QoQ, and appreciation of yen
FY2016/17 1Q net revenue by region
YoY QoQ
Global Markets
Global
Markets Fixed
Equities
Income
Americas
EMEA
AEJ
Japan
0% ~ ±5% ±5% ~ ±15% ±15% ~
Americas: Fixed Income saw strong performance in Rates and improvement
in Spread Products; Equities revenues declined mainly due to non-recurrence
of one-off gains in previous quarter
EMEA: Fixed Income saw improved results in Rates; Equities reported an
uptick in revenues despite a review of the business during the quarter
AEJ: Improved performance across all Fixed Income products, while Equities
revenues declined due to slower client activity
Japan: Turnaround in Rates and Credit was the main driver of robust Fixed
Income; Equities reported softer revenues QoQ on the back of a decline in
markets and client activity
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Wholesale: Investment Banking Net revenue Investment Banking (gross)(billions of yen) 49.763.134.447.033.9 Investment Banking (net)Other 34.2QoQ 29.00.828.827.9-27% 2.7YoY 8.120.4-30% 33.4 29.125.2 20.720.5 -0.1-0.1 FY2015/16FY2016/17 1Q2Q3Q4Q1Q Key points Net revenue: Y20.4bn (-27% QoQ; -30% YoY) Investment Banking (gross) revenue of Y33.9bn Revenues down both QoQ and YoY due to decline in ECM transactions and yen appreciation Solid revenues from M&A driven by completed deals Japan: Market turmoil and seasonal factors led to slower ECM revenues Revenues driven by industry consolidation and cross-border M&A deals Retainedtop position in Japan ECM league table by capturing financing needs ofcorporates (market share: 38.9%)1 International: Revenues up QoQ driven by improvement in Americas Conducted strategic review of EMEA and Americas businesses to focus on competitive strengths Executed multi-product M&A deals and supported a number of large bond issuances by financial institutions and SSAs2 (1) Source: Thomson Reuters, Jan—Jun 2016. (2) Sovereigns, Supranationals and Agencies. Focusing on areas of competitive strength M&A Financing Business growth driven out of Asia including Japan Won numerous deals for industry consolidation in Japan and cross-border M&As as well as global financing for Asian corporates Kansai Paint Musashi SeimitsuRengo/Euroyen CB Industry/ AsiaHay HoldingTri-Wall Holdings(Y104.6bn) (HKD1.7bn) incl.(€361m)Orient Securities JapanHong Kong IPO Daiwa HouseHitachi and Mitsubishi(HKD7.8bn) UFJ Financial Group Residential / Daiwastrategic alliance inExport-Import Bank of House REITKorea financial services (Y255.7bn)USD-denominated bond (Y121.3bn)($2.5bn) Cross-border M&A and M&A-related financing contributed to revenues AmericasAlbany MolecularFinance for Gaming &Republic of Mexico Research / PrimeLeisure PropertiesSamurai bond Europeanacquisition of Pinnacle(Y135bn) Therapeuticals (€310m)($2.2bn) Revenues driven by M&A multi-product deals and large DCM transactions EMEAVivendi /Rabobank Covéa / SCOR (€347m)Mediaset PremiumAdditional Tier1 (€858m)(€1.3bn) 11
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Non-interest expenses Full year (billions of yen) 1,500 1,257.4 1,230.5 Other 1,200 Business development expenses 900 Occupancy and related depreciation Information processing 600 and communications Commissions and floor brokerage 300 Compensation and benefits 0 FY2014/15 FY2015/16 Compensation and benefits 596.6 574.2 Commissions and floor brokerage 130.0 123.9 Information processing and communications 192.3 189.9 Occupancy and related depreciation 76.1 78.4 Business development expenses 35.2 35.9 Other 227.2 228.2 Total 1,257.4 1,230.5 Quarter (billions of yen) 400 318.0 316.7 303.3 292.5 275.7 300 200 100 0 FY2015/16 FY2016/17 1Q 2Q 3Q 4Q 1Q QoQ 155.9 149.7 141.8 126.8 125.9 -0.6% 34.2 32.6 31.1 25.9 24.2 -6.6% 47.9 48.2 46.8 46.9 44.2 -5.7% 18.7 19.2 19.6 20.9 18.2 -12.8% 8.3 8.5 9.3 9.8 8.3 -15.2% 52.9 58.5 54.6 62.2 54.8 -11.9% 318.0 316.7 303.3 292.5 275.7 -5.7% Key points Non-interest expenses: Y275.7bn (-6% QoQ; -13% YoY) Group expenses down QoQ due to yen appreciation and lower non-personnel expenses Non-personnel expenses (-10% QoQ) Controlled business development expenses and occupancy and related depreciation Marked decline in Group expenses YoY Personnel expenses (-19% YoY) Decline due to currency exchange, cost reductions in international operations, focus on pay for performance Non-personnel expenses (-8% YoY) Decline in trading volumes led to lower commissions and floor brokerage 12
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Robust financial position Balance sheet related indicators and capital ratios Mar 2016 Jun 2016 Total assetsY41.1trnY42.9trn Shareholders’ equityY2.7trnY2.6trn Gross leverage15.2x16.2x Net leverage19.6x9.8x Level 3 assets2Y0.4trnY0.4trn (net) Liquidity portfolioY5.9trnY5.5trn (billions of yen) Basel 3 basisMar 2016Jun 20162 Tier 1 capital2,5782,556 Tier 2 capital323315 Total capital2,9012,871 RWA315,97115,043 Tier 1 capital ratio16.1%16.9% CET 1 capital ratio 415.4%16.3% Consolidated capital adequacy ratio18.1%19.0% Consolidated leverage ratio 54.28%4.28% HQLA6Y6.2trnY5.8trn LCR6175.8%190.8% Risk weighted assets3 and CET 1 capital ratio4 (trillions of yen)RWA (Basel 3) (lhs)CET1 capital ratio (Basel 3) (rhs) 20.020.0% 15.1%15.4%16.3%15.5% 15.013.5%13.2%15.0% 10.010.0% 5.05.0% 0.00.0% Fully loaded Basel FY2015/16FY2016/173 2019 applied to balance sheet at JunSepDecMarJunend Jun (estimate) Level 3 assets2 and net level 3 assets/Tier 1 capital (billions of yen)Level 3 Assets 800Net Level 3 Assets30% Net Level 3 Assets / Tier 1 Capital 600 17%20% 40014%14%14%14% 10% 200 00% FY2015/16FY2016/17 JunSepDecMarJun (1)Net leverage: Total assets minus securities purchased under agreementsto resell and securities borrowed, divided by Nomura H oldingsshareholders’ equity.(2) June 2016 is preliminary. (3)Credit risk assets are calculated using the internal model method.(4) CET 1 capital ratio is definedas Tier1 capital minus minority interest divided byrisk-weighted assets.13 (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 Balance sheet structure(As of June 2016) AssetsLiabilities and equity Highly liquid, healthy balance sheetUnsecured funding2 structure 80% of assets are highly liquidApprox. 80% of unsecured funding is trading and related assets that arelong -term debt marked -to-market and matched toDiversified sources of funding trading and related liabilities through Short-term d ebt repos etc. (regionally and byTrading liabilities16% currency)and related 1Lon g -term debt due Other assets are funded by equityTrading assetswithin 1yr, 8% and related 1 and long -term debt, ensuring structural stabilityInternational 30%LoansBank (incl.lending Long -termsubordinated)market debt, 76% Liquidity portfolio2Other liabilitiesAverageEuro MTN/Yen, Short-term borrowingsmaturityJapanretail bonds, etc. Retail 5.1 years370%market Liquidity portfolio:Cash and cash depositsLong -termEuro borrowingsMTN/Other, Y5.5trn, or 13% of total assetsOther assetsWholesale wholesale Maintain a high quality liquidityTotal equitybonds, etc.market portfolio surplus without the need for additional unsecured fundingBreakdown of Long-termFunding of short-term/long- debt bylong-term over a certain periodterm debtregiondebt (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 liqui dity portfolio excludes fundson 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
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Consolidated balance sheet (billions of yen) Mar 31, Jun 30,IncreaseMar 31,Jun 30,Increase 20162016(Decrease)20162016(Decrease) AssetsLiabilities Total cash and cash deposits3,8992,363-1,536Short-term borrowings66372360 Total payables and deposits4,2493,555-694 Total loans and receivables2,9703,180210Total collateralized financing16,60619,5162,911 Trading liabilities7,4997,52929 Total collateralized agreements15,07816,9511,873Other liabilities1,2011,137-63 Long-term borrowings8,1307,759-370 Total trading assets1 and private16,41017,5471,137Total liabilities38,34740,2191,872 equity investments Total other assets2,7342,879144Equity Total NHI shareholders’ equity2,7002,642-58 Noncontrolling interest435714 Total assets41,09042,9181,828Total liabilities and equity41,09042,9181,828 (1) Including securities pledged as collateral. 16
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Value at risk Definition From April 1, 2016, to June 30, 2016 (billions of yen) 99% confidence level Maximum:6.7 1-day time horizon for outstanding portfolioMinimum:3.4 Inter-product price fluctuations consideredAverage:5.1 (billions of yen)FY2014/15FY2015/16FY2015/16FY2016/17 MarMarJunSepDecMarJun Equity1.00.91.31.51.70.90.7 Interest rate4.23.83.95.24.93.84.1 Foreign exchange1.10.81.11.42.00.82.5 Sub-total6.25.56.28.28.55.57.3 Diversification benefit-1.6-2.0-2.4-2.8-2.8-2.0-2.9 VaR4.63.53.85.45.73.54.4 17
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Consolidated financial highlights Full yearQuarter (billions of yen)(billions of yen) 8.6%10012% 3009% 8010.0% 224.88.4%9% 60 Net income (loss)2006%7.3%7.0% attributable to NHI4.9% shareholders406% 131.668.7 ROE(%)2046.64.9%46.8 1003%35.4 3% 0 00%-20-19.20% FY2014/15 FY2015/16FY2015/16FY2016/17 1Q2Q3Q4Q1Q Net revenue1,604.21,395.7424.0336.6354.9280.1338.5 Income (loss) before income taxes346.8165.2106.019.951.6-12.362.8 Net income (loss) attributable to Nomura224.8131.668.746.635.4-19.246.8 Holdings, Inc. (“NHI”) shareholders Total NHI shareholders’ equity2,707.82,700.22,783.32,761.72,804.72,700.22,642.3 ROE (%)18.6%4.9%10.0%8.4%7.3%4.9%7.0% Basic-Net income (loss) attributable to NHI61.6636.5319.1112.959.83-5.3113.00 shareholders per share (yen) Diluted-Net income (loss) attributable to NHI60.0335.5218.6512.639.61-5.3312.71 shareholders per share (yen) Total NHI shareholders’ equity per share (yen)752.40748.32774.39767.73777.74748.32736.47 18 (1) Quarterly ROE is calculated using annualized year-to-date net income (loss).
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Consolidated income Full yearQuarter FY2015/16FY2016/17 (billions of yen)FY2014/15 FY2015/161Q2Q3Q4Q1Q Revenue Commissions453.4432.0130.3111.5102.387.876.3 Fees from investment banking95.1118.324.544.920.029.017.3 Asset management and portfolio service fees203.4229.059.958.257.853.152.6 Net gain on trading531.3354.0124.762.6105.261.5140.1 Gain on private equity investments5.513.81.20.68.73.30.0 Interest and dividends436.8440.1113.6111.5107.9106.9106.6 Gain (loss) on investments in equity securities29.4-20.59.2-10.94.7-23.5-10.0 Other175.7156.544.939.627.944.135.5 Total revenue1,930.61,723.1508.4417.9434.5362.2418.4 Interest expense326.4327.484.481.379.682.179.9 Net revenue1,604.21,395.7424.0336.6354.9280.1338.5 Non-interest expenses1,257.41,230.5318.0316.7303.3292.5275.7 Income (loss) before income taxes346.8165.2106.019.951.6-12.362.8 Net income (loss) attributable to NHI shareholders224.8131.668.746.635.4-19.246.8 19
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Main revenue items Full yearQuarter (billions of yen)FY2014/15 FY2015/16FY2015/16FY2016/17 1Q2Q3Q4Q1Q Stock brokerage commissions252.8275.078.771.363.761.348.4 Other brokerage commissions19.623.35.26.85.45.84.3 CommissionsCommissions for distribution of investment trusts134.389.534.322.020.812.415.8 Other46.844.212.211.312.48.37.7 Total453.4432.0130.3111.5102.387.876.3 Equity underwriting and distribution28.856.77.430.810.38.22.8 Bond underwriting and distribution20.412.94.63.31.83.32.9 Fees fromM&A / Financial advisory fees24.633.17.77.56.511.39.4 investment banking Other21.215.64.83.31.46.22.2 Total95.1118.324.544.920.029.017.3 Asset managementAsset management fees151.8164.444.242.041.236.936.2 and portfolio serviceAdministration fees32.645.710.711.311.911.711.9 feesCustodial fees19.019.05.04.84.74.44.5 Total203.4229.059.958.257.853.152.6 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
FY2015/16 FY2016/17
(billions of yen) FY2014/15 FY2015/16
1Q 2Q 3Q 4Q 1Q
Retail 161.8 127.6 50.9 36.7 27.8 12.2 8.7
Asset Management 32.1 36.7 11.7 8.4 10.7 5.8 12.2
Wholesale 82.2 15.4 19.7 8.6 9.9 -22.8 46.6
Three business segments total 276.1 179.7 82.3 53.8 48.5 -4.9 67.5
Other 46.0 6.1 14.7 -23.0 -1.6 16.1 5.8
Segments total 322.1 185.8 97.0 30.8 46.9 11.2 73.3
Unrealized gain (loss) on investments in equity
securities held for operating purposes 24.7 -20.7 9.0 -10.9 4.7 -23.5 -10.5
Income (loss) before income taxes 346.8 165.2 106.0 19.9 51.6 -12.3 62.8
Geographic information: Income (loss) before income taxes1
Full year Quarter
(billions of yen) FY2014/15 FY2015/16 FY2015/16 FY2016/17
1Q 2Q 3Q 4Q 1Q
Americas -27.6 -32.0 -2.4 -19.8 -12.3 2.4 15.2
Europe -23.5 -67.4 -9.7 -35.2 -5.7 -16.8 -4.4
Asia and Oceania 34.6 19.8 14.8 9.2 -2.0 -2.2 6.1
Subtotal -16.4 -79.6 2.7 -45.8 -19.9 -16.6 16.9
Japan 363.2 244.8 103.3 65.6 71.6 4.3 45.9
Income (loss) before income taxes 346.8 165.2 106.0 19.9 51.6 -12.3 62.8
(1) Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended June 30, 2016). Nomura’s revenues and expenses are allocated based on the country of domicile of the legal 21
entity providing the service. This information is not used for business management purposes.
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Segment _Other_ Income (loss) before income taxes Full yearQuarter (billions of yen) 50.046.0 40.0 30.0 20.014.716.1 10.06.15.8 0.0 -10.0-1.6 -20.0 -30.0-23.0 1212345 FY2015/16FY2016/17 FY2014/15 FY2015/16 1Q2Q3Q4Q1Q Net gain (loss) related to economic15.16.4-2.61.1-0.68.512.0 hedging transactions Realized gain on investments in equity4.70.20.20.00.00.00.6 securities held for operating purposes Equity in earnings of affiliates42.232.713.89.14.85.11.1 Corporate items-20.1-52.3-3.9-40.0-3.2-5.2-4.3 Others4.019.27.26.9-2.67.7-3.5 Income (loss) before income taxes46.06.114.7-23.0-1.616.15.8 22
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Retail related data (1) Full yearQuarter (billions of yen)FY2014/15 FY2015/16FY2015/16FY2016/17QoQYoY 1Q2Q3Q4Q1Q Commissions258.9220.373.855.851.838.938.4-1.2%-48.0% Of which, brokerage commission81.878.926.420.018.014.413.1-9.1%-50.4% Of which, commissions for distribution of investment trusts134.993.634.922.522.014.317.623.3%-49.6% Sales credit106.486.426.019.723.217.518.66.6%-28.5% Fees from investment banking and other32.535.96.216.66.17.04.3-38.2%-30.8% Investment trust administration fees and other71.985.321.922.021.420.019.9-0.7%-9.1% Net interest revenue6.97.82.81.51.81.72.652.0%-7.8% Net revenue476.5435.6130.7115.7104.385.083.8-1.5%-35.9% Non-interest expenses314.7308.079.878.976.572.975.13.1%-5.9% Income before income taxes161.8127.650.936.727.812.28.7-28.7%-83.0% Domestic distribution volume of investment trusts 19,478.55,644.91,975.31,407.31,485.8776.4761.8-1.9%-61.4% Bond investment trusts3,110.21,094.0382.2298.7266.8146.20.2-99.9%-99.9% Stock investment trusts5,445.13,656.31,378.9922.2842.0513.2640.524.8%-53.5% Foreign investment trusts923.1894.6214.2186.4377.0117.0121.03.4%-43.5% Other Accumulated value of annuity insurance policies2,401.72,806.42,531.42,640.52,742.72,806.42,850.01.6%12.6% Sales of JGBs for individual investors (transaction base)380.6425.953.760.576.9234.8173.6-26.1%3.2x Retail foreign currency bond sales1,255.71,205.0257.9253.2398.5295.4185.2-37.3%-28.2% 23 (1) Excluding Net & Call and Hotto Direct.
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Retail related data (2)
Retail client assets
(trillions of yen)
113.4
120 109.5 108.8
Other 100.6 103.0 100.6
100 95.3
Overseas mutual funds
80
Bond investment trusts
Stock investment trusts 60
Domestic bonds 40
Foreign currency bonds
20
Equities
0
FY2014/15 FY2015/16 FY2015/16 FY2016/17
Mar Mar Jun Sep Dec Mar Jun
Equities 67.2 60.2 70.2 62.3 67.4 60.2 55.8
Foreign currency bonds 6.3 5.6 6.1 5.6 5.6 5.6 5.5
Domestic bonds1 12.3 11.7 12.1 11.8 11.4 11.7 11.8
Stock investment trusts 10.3 8.6 10.4 8.8 9.2 8.6 8.0
Bond investment trusts 7.3 7.3 7.7 7.3 7.5 7.3 6.5
Overseas mutual funds 1.8 1.4 1.7 1.6 1.5 1.4 1.3
Other2 4.5 5.8 5.1 5.7 6.1 5.8 6.5
Total 109.5 100.6 113.4 103.0 108.8 100.6 95.3
(1) Including CBs and warrants. 24
(2) Including annuity insurance.
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Retail related data (3) Net inflows of cash and securities 1 Full yearQuarter (billions of yen)(billions of yen) 1,5001,000 997 1,000500 352 95 5000 -43 48-356-243 0-500 FY2015/16FY2016/17 FY2014/15FY2015/16 1Q2Q3Q4Q1Q (1) Cash and securities inflows minus outflows, excluding regional financial institutions. 25
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Retail related data (4) Number of accounts (thousands)FY2014/15FY2015/16FY2015/16FY2016/17 MarMarJunSepDecMarJun Accounts with balance5,2945,3895,3165,3665,3845,3895,390 Equity holding accounts2,7192,8272,7002,7252,7962,8272,842 Nomura Home Trade / Net & Call accounts4,2164,4124,2704,3374,3844,4124,443 New Individual accounts / IT share1 Full yearQuarter FY2015/16FY2016/17 (thousands)FY2014/15FY2015/16 1Q2Q3Q4Q1Q New individual accounts32033690103865754 IT share1 No. of orders59%58%59%60%55%59%58% Transaction value37%36%37%40%32%36%35% (1) Percentage of cash stock transactions conducted via Nomura Home Trade. 26
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Asset Management related data (1) Full year Quarter FY2015/16FY2016/17 FY2014/15 FY2015/16QoQYoY (billions of yen)1Q2Q3Q4Q1Q Net revenue92.495.426.922.925.320.325.927.7%-3.7% Non-interest expenses60.358.715.214.414.614.513.7-5.8%-9.7% Income before income taxes32.136.711.78.410.75.812.2111.8%4.2% Assets under management by company FY2014/15 FY2015/16FY2015/16FY2016/17 (trillions of yen) MarMarJunSepDecMarJun Nomura Asset Management 1,243.343.545.143.445.943.540.3 Nomura Funds Research and Technologies 23.03.13.12.13.33.12.8 Nomura Corporate Research and Asset Management 11.71.61.71.51.61.61.6 Nomura Private Equity Capital 20.2-0.20.2--- Assets under management (gross) 1,2,348.148.250.147.250.848.244.7 Group company overlap 1,28.88.18.77.28.68.17.4 Assets under management (net) 439.340.141.440.042.240.137.3 (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.27 (4)Net after deducting duplications from assets under management (gross).
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Asset Management related data (2) Asset inflows/outflows by business1 Full yearQuarter (billions of yen)FY2015/16FY2016/17 FY2014/15FY2015/16 1Q2Q3Q4Q1Q Investment trusts business3,4182,7171,252896157412-423 of which ETFs8432,3393081,294-102838-24 Investment advisory business502,038381,446646-92-169 Net asset inflow3,4694,7551,2902,342803320-592 Domestic public investment trust market and Nomura Asset Management market share 2 (trillions of yen)FY2014/15FY2015/16FY2015/16FY2016/17 MarMarJunSepDecMarJun Domestic public stock investment trusts Market80.378.683.177.181.778.674.1 Nomura Asset Management share (%)20%21%21%21%21%21%21% Domestic public bond investment trusts Market16.713.917.716.016.013.911.9 Nomura Asset Management share (%)43%46%42%43%43%46%44% ETF Market12.915.814.514.516.215.815.0 Nomura Asset Management share (%)48%48%47%49%47%48%47% 28 (1) Based on assets under management (net). (2) Sourcev Investment Trusts Association, Japan.
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Wholesale related data
Full year Quarter
(billions of yen) FY2014/15 FY2015/16 FY2015/16 FY2016/17 QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 789.9 720.3 205.2 192.9 186.0 136.2 190.9 40.2% -6.9%
Non-interest expenses 707.7 704.9 185.5 184.3 176.0 159.0 144.3 -9.3% -22.2%
Income (loss) before income taxes 82.2 15.4 19.7 8.6 9.9 -22.8 46.6 - 137.1%
Breakdown of Wholesale revenues
Full year Quarter
(billions of yen) FY2014/15 FY2015/16 FY2015/16 FY2016/17 QoQ YoY
1Q 2Q 3Q 4Q 1Q
Fixed Income1 396.9 275.2 84.1 83.2 80.2 27.6 107.9 3.9x 28.3%
Equities1 286.5 325.1 92.1 75.5 76.9 80.7 62.6 -22.4% -32.0%
Global Markets 683.4 600.3 176.2 158.7 157.2 108.3 170.5 57.5% -3.2%
Investment Banking (Net) 104.7 108.4 29.1 33.4 20.7 25.2 20.5 -18.6% -29.4%
Other 1.8 11.5 -0.1 0.8 8.1 2.7 -0.1 - -
Investment Banking 106.5 120.0 29.0 34.2 28.8 27.9 20.4 -26.9% -29.6%
Net revenue 789.9 720.3 205.2 192.9 186.0 136.2 190.9 40.2% -6.9%
Investment Banking (Gross) 193.8 194.2 49.7 63.1 34.4 47.0 33.9 -28.0% -31.9%
29
(1) Fixed Income and Equities figures for FY2014/15 have been reclassified following a reorganization in April 2015.
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Number of employees FY2014/15 FY2015/16FY2015/16FY2016/17 MarMarJunSepDecMarJun Japan15,97316,08316,57016,38116,28216,08316,792 Europe3,4853,4243,4923,4943,4333,4243,170 Americas2,4492,5032,4392,5142,5012,5032,481 Asia and Oceania16,7656,8556,7886,8626,8536,8556,769 Total28,67228,86529,28929,25129,06928,86529,212 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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